-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EgLmlsY+K7ZNMHW4QOW8QXaJ8XVP+GbD9UeU00CHXLEy5JTcUl3T+1EA/waT1lkd BfU8qXEdzljkwNdZjLNk1w== 0000950134-07-007302.txt : 20070402 0000950134-07-007302.hdr.sgml : 20070402 20070402173021 ACCESSION NUMBER: 0000950134-07-007302 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070131 FILED AS OF DATE: 20070402 DATE AS OF CHANGE: 20070402 EFFECTIVENESS DATE: 20070402 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RUSSELL INVESTMENT CO CENTRAL INDEX KEY: 0000351601 IRS NUMBER: 911151059 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-03153 FILM NUMBER: 07740745 BUSINESS ADDRESS: STREET 1: 909 A ST STREET 2: 11TH FLOOR CITY: TACOMA STATE: WA ZIP: 98402 BUSINESS PHONE: 800-787-7354 MAIL ADDRESS: STREET 1: 909 A ST STREET 2: 11TH FLOOR CITY: TACOMA STATE: WA ZIP: 98402 FORMER COMPANY: FORMER CONFORMED NAME: RUSSELL FRANK INVESTMENT CO DATE OF NAME CHANGE: 19920703 0000351601 S000001568 Diversified Equity Fund C000004227 Class S RDESX C000004228 Class C RDECX C000004229 Class E RDEEX 0000351601 S000001569 Emerging Markets Fund C000004230 Class S REMSX C000004231 Class C REMCX C000004232 Class E REMEX 0000351601 S000001570 Tax-Managed Large Cap Fund C000004233 Class S RETSX C000004234 Class C RTLCX C000004235 Class E RTLEX 0000351601 S000001571 Tax-Managed Mid & Small Cap Fund C000004236 Class S RTSSX C000004237 Class C RTSCX C000004238 Class E RTSEX 0000351601 S000001572 Select Value Fund C000004239 Class S RSVSX C000004240 Class C RSVCX C000004241 Class E RSVEX C000004242 Class I RSVIX 0000351601 S000001573 Select Growth Fund C000004243 Class S RSGSX C000004244 Class C RSGCX C000004245 Class E RSGEX C000004246 Class I RSGIX 0000351601 S000001574 Russell Multi-Manager Principal Protected Fund C000004247 Class A RMPAX C000004248 Class B RMPBX 0000351601 S000001575 Growth Strategy Fund C000004249 Class R3 RALDX C000004250 Class A RALAX C000004251 Class C RALCX C000004252 Class E RALEX C000004253 Class S RALSX C000027574 Class R1 RALRX C000027575 Class R2 RALTX 0000351601 S000001576 Balanced Strategy Fund C000004254 Class R3 RBLDX C000004255 Class A RBLAX C000004256 Class C RBLCX C000004257 Class E RBLEX C000004258 Class S RBLSX C000027576 Class R1 RBLRX C000027577 Class R2 RBLTX 0000351601 S000001577 Moderate Strategy Fund C000004259 Class R3 RMLDX C000004260 Class A RMLAX C000004261 Class C RMLCX C000004262 Class E RMLEX C000004263 Class S RMLSX C000027578 Class R1 RMLRX C000027579 Class R2 RMLTX 0000351601 S000001578 Conservative Strategy Fund C000004264 Class R3 RCLDX C000004265 Class A RCLAX C000004266 Class C RCLCX C000004267 Class E RCLEX C000004268 Class S RCLSX C000027580 Class R1 RCLRX C000027581 Class R2 RCLTX 0000351601 S000001579 Real Estate Securities Fund C000004269 Class S RRESX C000004270 Class C RRSCX C000004271 Class E RREEX 0000351601 S000001580 Equity Growth Strategy Fund C000004272 Class R3 RELDX C000004273 Class A REAAX C000004274 Class C RELCX C000004275 Class E RELEX C000004276 Class S RELSX C000027582 Class R1 RELRX C000027583 Class R2 RELTX 0000351601 S000001581 2010 Strategy Fund C000004277 Class A RJLAX C000004278 Class R3 RJLDX C000004279 Class E RJLEX C000004280 Class S RJLSX C000027584 Class R1 RJLRX C000027585 Class R2 RJLTX 0000351601 S000001582 2020 Strategy Fund C000004281 Class A RLLAX C000004282 Class R3 RLLDX C000004283 Class E RLLEX C000004284 Class S RLLSX C000027586 Class R1 RLLRX C000027587 Class R2 RLLTX 0000351601 S000001583 2030 Strategy Fund C000004285 Class A RRLAX C000004286 Class R3 RRLDX C000004287 Class E RRLEX C000004288 Class S RRLSX C000027588 Class R1 RRLRX C000027589 Class R2 RRLTX 0000351601 S000001584 2040 Strategy Fund C000004289 Class A RXLAX C000004290 Class R3 RXLDX C000004291 Class E RXLEX C000004292 Class S RXLSX C000027590 Class R1 RXLRX C000027591 Class R2 RXLTX 0000351601 S000001585 Equity I Fund C000004293 Class I REASX C000004294 Class E REAEX C000004295 Class Y REAYX 0000351601 S000001586 Equity II Fund C000004296 Class I REBSX C000004297 Class E REBEX C000004298 Class Y REBYX 0000351601 S000001587 Fixed Income I C000004299 Class I RFASX C000004300 Class E RFAEX C000004301 Class Y RFAYX 0000351601 S000001588 International Fund C000004302 Class I RINSX C000004303 Class E RIFEX C000004304 Class Y RINYX 0000351601 S000001589 Fixed Income III Fund C000004305 Class I RFCSX C000004306 Class E RFCEX C000004307 Class Y RFCYX 0000351601 S000001590 Special Growth Fund C000004308 Class S RSPSX C000004309 Class C RSPCX C000004310 Class E RSPEX 0000351601 S000001591 Equity Q Fund C000004311 Class I REDSX C000004312 Class E REQEX C000004313 Class Y REUYX 0000351601 S000001592 Money Market Fund C000004314 Class S RMMXX C000004315 Class A RAMXX 0000351601 S000001593 US Government Money Market Fund C000004316 Class S RGVXX 0000351601 S000001594 Tax Free Money Market Fund C000004317 Class S RTSXX 0000351601 S000001595 Tax-Managed Global Equity Fund C000004318 Class C RTGCX C000004319 Class S RTGSX 0000351601 S000001596 Diversified Bond Fund C000004321 Class S RDBSX C000004322 Class C RDBCX C000004323 Class E RDBEX 0000351601 S000001597 International Securities Fund C000004324 Class S RISSX C000004325 Class C RCISX C000004326 Class E REISX 0000351601 S000001598 Multistrategy Bond Fund C000004327 Class S RMSSX C000004328 Class C RMSCX C000004329 Class E RMSEX 0000351601 S000001599 Tax Exempt Bond Fund C000004330 Class S RLVSX C000004331 Class C RTECX C000004332 Class E RTBEX 0000351601 S000001600 Quantitative Equity Fund C000004333 Class S RQESX C000004334 Class C RQECX C000004335 Class E RQEEX 0000351601 S000001601 Short Duration Bond Fund C000004336 Class S RFBSX C000004337 Class C RSBCX C000004338 Class E RSBEX N-Q 1 f47481nvq.txt FORM N-Q ================== OMB APPROVAL ================== OMB Number: 3235-0578 Expires: May, 31, 2007 Estimated average burden hours per response: 21.09 ================== 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) 909 A STREET, TACOMA WASHINGTON 98402 (Address of principal executive offices) (Zip code) GREG J. LYONS, ASSISTANT SECRETARY RUSSELL INVESTMENT COMPANY 909 A STREET TACOMA, WASHINGTON 98402 253-439-2406 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 253-572-9500 Date of fiscal year end: OCTOBER 31 Date of reporting period: November 30, 2006 -- January 31, 2007 ITEM 1. SCHEDULE OF INVESTMENTS TAX-MANAGED GLOBAL EQUITY FUND [MOUNTAIN GRAPHIC] 2007 Quarterly Report CLASS C AND S SHARES: TAX-MANAGED GLOBAL EQUITY FUND JANUARY 31, 2007 [RUSSELL LOGO] Russell Investment Company Russell Investment Company is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on one of these Funds. Russell Investment Management Company* Responsible for overall management and administration of the Funds. * On July 1, 2006, Frank Russell Investment Management Company changed its name to Russell Investment Management Company. [BLANK PAGE] Russell Investment Company Tax-Managed Global Equity Fund Quarterly Report January 31, 2007 (Unaudited) Table of Contents
Page Schedule of Investments.............................................. 3 Notes to Quarterly Report............................................ 4 Shareholder Requests for Additional Information...................... 7
Russell Investment Company - Tax-Managed Global Equity Fund. Copyright (c) Russell Investment Group 2007. All rights reserved. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company. FUND OBJECTIVES, RISKS, CHARGES AND EXPENSES SHOULD BE CAREFULLY CONSIDERED BEFORE INVESTING. 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 FUND DISTRIBUTORS, INC. MEMBER NASD, PART OF RUSSELL INVESTMENT GROUP. Effective July 1, 2006 Frank Russell Investment Company changed its name to Russell Investment Company ("RIC"). RIC Funds are distributed by Russell Fund Distributors, Inc., and advised by Russell Investment Management Company ("RIMCo"). Effective July 1, 2006 RIMCo changed its name from Frank Russell Investment Management Company. Russell Investment Group and Standard & Poor's Corporation are the owners of the trademarks, service marks, and copyrights related to their respective indexes. Index performance is not indicative of the performance of any specific investment. Indexes are not managed and may not be invested in directly. RUSSELL INVESTMENT COMPANY TAX-MANAGED GLOBAL EQUITY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.8% Other Russell Investment Company Series Mutual Funds - Class S Shares Domestic Equities - 74.9% Quantitative Equity Fund 203,753 8,513 Tax-Managed Large Cap Fund 2,009,629 42,544 Tax-Managed Mid & Small Cap Fund 867,843 12,749 ------------ 63,806 ------------ International Equities - 24.9% Emerging Markets Fund 206,398 4,241 International Securities Fund 221,932 16,929 ------------ 21,170 ------------ TOTAL INVESTMENTS - 99.8% (identified cost $58,533) 84,976 OTHER ASSETS AND LIABILITIES, NET - 0.2% 161 ------------ NET ASSETS - 100.0% 85,137 ============
See accompanying notes which are an integral part of the schedule of investments. Schedule of Investments 3 RUSSELL INVESTMENT COMPANY TAX-MANAGED GLOBAL EQUITY FUND NOTES TO QUARTERLY REPORT -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- 1. ORGANIZATION Russell Investment Company (the "Investment Company" or "RIC") is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on one of these Funds (the "Fund"). The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under an amended and restated master trust agreement dated August 19, 2002. The Investment Company's master trust agreement permits the Board of Trustees (the "Board") to issue an unlimited number of shares of beneficial interest at a $.01 par value per share. On July 1, 2006, Frank Russell Investment Company changed its name to Russell Investment Company and Frank Russell Investment Management Company changed its name to Russell Investment Management Company ("RIMCo"). The Fund allocates its assets by investing in the Class S shares of several other RIC funds (the "Underlying Funds"). RIMCo, the Fund's investment adviser, may modify the target asset allocation for the Fund and modify the selection of Underlying Funds for the Fund from time to time. Also, from time to time, the Fund may adjust its investments within set limits based on RIMCo's outlook for the economy, financial markets generally and relative market valuation of the asset classes represented by each Underlying Fund. Additionally, the Fund may deviate from set limits when, in RIMCo's opinion, it is necessary to do so to pursue the Fund's investment objective. In the future, the Fund may also invest in other funds which are not currently Underlying Funds.
ASSET ALLOCATION ASSET CLASS/UNDERLYING FUNDS TARGETS - ------------------------------------------------------------ Equities US Equities Tax-Managed Large Cap Fund 50% Tax-Managed Mid & Small Cap Fund 15 Quantitative Equity Fund 10 International Equities International Securities Fund 20 Emerging Markets Fund 5 --- 100
Investment Objectives of the Underlying Funds: Tax-Managed Large Cap Fund Seeks to provide long term capital growth on an after-tax basis. Tax-Managed Mid & Small Cap Fund Seeks to provide long term capital growth on an after-tax basis. Quantitative Equity Fund Seeks to provide long term capital growth. International Securities Fund Seeks to provide long term capital growth. Emerging Markets Fund Seeks to provide long term capital growth. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies consistently followed by the Fund in the preparation of this Quarterly Report. These policies are in conformity with generally accepted accounting principles ("GAAP") for investment 4 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY TAX-MANAGED GLOBAL EQUITY FUND NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- companies. The presentation of the schedule of investments in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Quarterly Report. Actual results could differ from those estimates. Security Valuation The Fund values its portfolio securities, the shares of the Underlying Funds, at the current net asset value per share of each Underlying Fund. The Underlying Funds value portfolio securities according to Board-approved Securities Valuation Procedures, including Market Value Procedures, Fair Value Procedures and Pricing Services. Money market fund securities are priced using the amortized cost method of valuation, as are debt obligation securities maturing within 60 days at the time of purchase, unless the Board determines that amortized cost does not represent market value of short-term debt obligations. The Board has delegated the responsibility for fund administration of the Securities Valuation Procedures to RIMC. Ordinarily, the Underlying Funds value each portfolio security based on market quotations provided by Pricing Services or alternative pricing services or dealers (when permitted by the Market Value Procedures). Generally, Underlying Fund securities are valued at the close of the market on which they are traded as follows: - US listed equities; equity and fixed income options: Last sale price; last bid price if no last sale price; - US over-the-counter equities: Official closing price; last bid price if no closing price; - Listed ADRs/GDRs: Last sale price; last bid price if no sales; - Municipal bonds, US bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price; - Futures: Settlement price. - Investments in other mutual funds are valued at their net asset value per share, calculated at 4 p.m. Eastern time or as of the close of the New York Stock Exchange, whichever is earlier. - The value of swap agreements are equal to the Funds' obligation (or rights) under swap contracts which will generally be equal to the net amounts to be paid or received under the contracts based upon the relative values of the positions held by each party to the contracts. - Equity securities traded on a national securities foreign exchange or an over the counter market (foreign or domestic) are valued on the basis of the official closing price, or lacking the official closing price, at the last sale price of the primary exchange on which the security is traded. If market quotations are not readily available for a security or if subsequent events suggest that a market quotation is not reliable, the Underlying Funds will use the security's fair value, as determined in accordance with the Fair Value Procedures. This generally means that equity securities and fixed income securities listed and traded principally on any national securities exchange are valued on the basis of the last sale price or, lacking any sales, at the closing bid price, on the primary exchange on which the security is traded. The Fair Value Procedures may involve subjective judgments as to the fair value of securities. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market on which they are traded, but rather may be priced by another method that the Funds' Board of Trustees believes reflects fair value. The use of fair value pricing by an Underlying Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using normal pricing methods. Fair value pricing could also cause discrepancies between the daily movement of the value of Underlying Fund shares and daily movement of the benchmark index if the index is valued using another pricing method. This policy is intended to assure that the Underlying Funds' net asset values fairly reflect security values as of the time of pricing. Events or circumstances affecting the values of Underlying Fund securities that occur between the closing of the principal markets on which they trade and the time the net asset value of Underlying Fund shares is determined may be reflected in the calculation of net asset values for each applicable Underlying Fund (and each Fund which invests in such Underlying Fund) when the Underlying Funds deem that the particular event or circumstance would materially affect such Underlying Fund's net asset value. Underlying Funds that invest primarily in frequently traded exchange listed securities will Notes to Quarterly Report 5 RUSSELL INVESTMENT COMPANY TAX-MANAGED GLOBAL EQUITY FUND NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- use fair value pricing in limited circumstances since reliable market quotations will often be readily available. Underlying 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. Underlying Funds that invest in low rated debt securities are also likely to use fair value pricing more often since the markets in which such securities are traded are generally thinner, more limited and less active than those for higher rated securities. Examples of events that could trigger fair value pricing of one or more securities are: a material market movement of the US securities market (defined in the Fair Value Procedures as the movement by any two of four major US Indexes greater than a certain percentage) or other significant event; foreign market holidays if on a daily basis, Fund exposure exceeds 20% in aggregate (all closed markets combined); a company development; a natural disaster; or an armed conflict. Because foreign securities can trade on non-business days, the net asset value of a Fund's portfolio that includes an Underlying Fund which invests in foreign securities may change on days when shareholders will not be able to purchase or redeem fund shares. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosure. Investment Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost. Investment Income Distributions of income and capital gains from the Underlying Funds are recorded on the ex-dividend date. Guarantees In the normal course of business the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss to be remote. 3. FEDERAL INCOME TAXES At January 31, 2007, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of Investments $ 71,134,875 ================ Unrealized Appreciation $ 13,840,783 Unrealized Depreciation -- ---------------- Net Unrealized Appreciation (Depreciation) $ 13,840,783 ================
6 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY TAX-MANAGED GLOBAL EQUITY FUND SHAREHOLDER REQUESTS FOR ADDITIONAL INFORMATION -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- As a courtesy to Fund shareholders, 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 Fund at (800) 787-7354, (ii) at www.russell.com, (iii) on the Securities and Exchange Commission's website at www.sec.gov, and (iv) at the Securities and Exchange Commission's public reference room. The Board has delegated to RIMCo, 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. RIMCo has established a proxy voting committee ("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 a Fund. A description of the P&P, Guidelines and Portfolio Holdings Disclosure Policy are contained in the Funds' Statement of Additional Information ("SAI"). The SAI is available (i) free of charge, upon request, by calling the Fund at (800) 787-7354, (ii) at www.russell.com, and (iii) on the Securities and Exchange Commission's website at www.sec.gov. Financial Statements of the Underlying Funds can be obtained at no charge by calling the Fund at (800) 787-7354. To reduce expenses, we may mail only one copy of the Fund's prospectus 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 call us at (800) 787-7354 or contact your financial institution and we will begin sending you individual copies thirty days after receiving your request. If you wish to receive the Fund's prospectus and each annual and semi-annual report electronically, please call us at (800) 787-7354 or contact your financial institution. Shareholder Requests for Additional Information 7 [RUSSELL LOGO] Russell Investment Company 909 A Street Tacoma, Washington 98402 253-627-7001 800-787-7354 Fax: 253-591-3495 www.russell.com 36-08-092 (7 01/07) LIFEPOINTS(R) FUNDS [MOUNTAIN GRAPHIC] 2007 Quarterly Report CLASS A, C, E, R1, R2, R3*, AND S SHARES: EQUITY GROWTH STRATEGY FUND (Effective July 1, 2006, the Fund changed its name from Equity Aggressive Strategy Fund.) GROWTH STRATEGY FUND (Effective July 1, 2006, the Fund changed its name from Aggressive Strategy Fund.) BALANCED STRATEGY FUND MODERATE STRATEGY FUND CONSERVATIVE STRATEGY FUND CLASS A, E, R1, R2, R3*, AND S SHARES: 2010 STRATEGY FUND 2020 STRATEGY FUND 2030 STRATEGY FUND 2040 STRATEGY FUND JANUARY 31, 2007 * Effective March 1, 2006, Class D Shares of these Funds were redesignated Class R3 Shares. [RUSSELL LOGO] Russell Investment Company Russell Investment Company is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on nine of these Funds. Russell Investment Management Company* Responsible for overall management and administration of the Funds. * On July 1, 2006, Frank Russell Investment Management Company changed its name to Russell Investment Management Company. [Blank Page] Russell Investment Company LifePoints(R) Funds Quarterly Report January 31, 2007 (Unaudited) Table of Contents
Page Equity Growth Strategy Fund.......................................... 3 Growth Strategy Fund................................................. 4 Balanced Strategy Fund............................................... 5 Moderate Strategy Fund............................................... 6 Conservative Strategy Fund........................................... 7 2010 Strategy Fund................................................... 8 2020 Strategy Fund................................................... 9 2030 Strategy Fund................................................... 10 2040 Strategy Fund................................................... 11 Notes to Quarterly Report............................................ 12 Shareholder Requests for Additional Information...................... 17
Russell Investment Company - LifePoints(R) Funds. Copyright (c) Russell Investment Group 2007. All rights reserved. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company. FUND OBJECTIVES, RISKS, CHARGES AND EXPENSES SHOULD BE CAREFULLY CONSIDERED BEFORE INVESTING. 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 FUND DISTRIBUTORS, INC. MEMBER NASD, PART OF RUSSELL INVESTMENT GROUP. Effective July 1, 2006 Frank Russell Investment Company changed its name to Russell Investment Company ("RIC"). RIC Funds are distributed by Russell Fund Distributors, Inc., and advised by Russell Investment Management Company ("RIMCo"). Effective July 1, 2006 RIMCo changed its name from Frank Russell Investment Management Company. Russell Investment Group and Standard & Poor's Corporation are the owners of the trademarks, service marks, and copyrights related to their respective indexes. Index performance is not indicative of the performance of any specific investment. Indexes are not managed and may not be invested in directly. RUSSELL INVESTMENT COMPANY EQUITY GROWTH STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.8% Other Russell Investment Company Series Mutual Funds - Class S Shares Domestic Equities - 71.0% Diversified Equity Fund 10,541,113 520,415 Quantitative Equity Fund 12,456,791 520,445 Real Estate Securities Fund 2,205,285 131,038 Special Growth Fund 2,080,844 107,767 ------------ 1,279,665 ------------ International Equities - 28.8% International Securities Fund 5,621,580 428,814 Emerging Markets Fund 4,348,221 89,355 ------------ 518,169 ------------ TOTAL INVESTMENTS - 99.8% (identified cost $1,459,048) 1,797,834 OTHER ASSETS AND LIABILITIES, NET - 0.2% 4,016 ------------ NET ASSETS - 100.0% 1,801,850 ============
See accompanying notes which are an integral part of the schedules of investments. Equity Growth Strategy Fund 3 RUSSELL INVESTMENT COMPANY GROWTH STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.8% Other Russell Investment Company Series Mutual Funds - Class S Shares Bonds - 19.8% Multistrategy Bond Fund 70,472,209 725,159 ------------ Domestic Equities - 57.2% Diversified Equity Fund 17,023,157 840,433 Quantitative Equity Fund 20,133,570 841,180 Real Estate Securities Fund 3,876,075 230,316 Special Growth Fund 3,548,398 183,772 ------------ 2,095,701 ------------ International Equities - 22.8% International Securities Fund 9,046,178 690,043 Emerging Markets Fund 7,079,222 145,478 ------------ 835,521 ------------ TOTAL INVESTMENTS - 99.8% (identified cost $3,101,891) 3,656,381 OTHER ASSETS AND LIABILITIES, NET - 0.2% 8,410 ------------ NET ASSETS - 100.0% 3,664,791 ============
See accompanying notes which are an integral part of the schedules of investments. 4 Growth Strategy Fund RUSSELL INVESTMENT COMPANY BALANCED STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.8% Other Russell Investment Company Series Mutual Funds - Class S Shares Bonds - 39.6% Diversified Bond Fund 44,256,036 1,024,970 Multistrategy Bond Fund 99,693,624 1,025,847 ------------ 2,050,817 ------------ Domestic Equities - 41.3% Diversified Equity Fund 16,782,715 828,563 Quantitative Equity Fund 19,866,046 830,003 Real Estate Securities Fund 4,638,056 275,593 Special Growth Fund 4,029,592 208,693 ------------ 2,142,852 ------------ International Equities - 18.9% Emerging Markets Fund 7,586,369 155,900 International Securities Fund 10,834,592 826,463 ------------ 982,363 ------------ TOTAL INVESTMENTS - 99.8% (identified cost $4,477,796) 5,176,032 OTHER ASSETS AND LIABILITIES, NET - 0.2% 9,006 ------------ NET ASSETS - 100.0% 5,185,038 ============
See accompanying notes which are an integral part of the schedules of investments. Balanced Strategy Fund 5 RUSSELL INVESTMENT COMPANY MODERATE STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.9% Other Russell Investment Company Series Mutual Funds - Class S Shares Bonds - 59.7% Diversified Bond Fund 13,282,928 307,632 Short Duration Bond Fund 20,175,728 375,672 ------------ 683,304 ------------ Domestic Equities - 29.2% Diversified Equity Fund 2,557,702 126,274 Quantitative Equity Fund 3,022,562 126,283 Real Estate Securities Fund 799,385 47,499 Special Growth Fund 667,779 34,585 ------------ 334,641 ------------ International Equities - 11.0% International Securities Fund 1,646,817 125,619 ------------ TOTAL INVESTMENTS - 99.9% (identified cost $1,027,929) 1,143,564 OTHER ASSETS AND LIABILITIES, NET - 0.1% 577 ------------ NET ASSETS - 100.0% 1,144,141 ============
See accompanying notes which are an integral part of the schedules of investments. 6 Moderate Strategy Fund RUSSELL INVESTMENT COMPANY CONSERVATIVE STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.9% Other Russell Investment Company Series Mutual Funds - Class S Shares Bonds - 79.9% Diversified Bond Fund 4,306,316 99,734 Short Duration Bond Fund 14,121,152 262,936 ------------ 362,670 ------------ Domestic Equities - 17.0% Diversified Equity Fund 642,772 31,734 Quantitative Equity Fund 759,541 31,734 Real Estate Securities Fund 228,881 13,600 ------------ 77,068 ------------ International Equities - 3.0% International Securities Fund 178,292 13,600 ------------ TOTAL INVESTMENTS - 99.9% (identified cost $423,648) 453,338 OTHER ASSETS AND LIABILITIES, NET - 0.1% 293 ------------ NET ASSETS - 100.0% 453,631 ============
See accompanying notes which are an integral part of the schedules of investments. Conservative Strategy Fund 7 RUSSELL INVESTMENT COMPANY 2010 STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.2% Other Russell Investment Company Series Mutual Funds - Class S Shares Bonds - 61.3% Diversified Bond Fund 187,291 4,338 Short Duration Bond Fund 311,629 5,802 ------------ 10,140 ------------ Domestic Equities - 27.8% Diversified Equity Fund 35,437 1,750 Quantitative Equity Fund 41,891 1,750 Real Estate Securities Fund 10,858 645 Special Growth Fund 8,583 445 ------------ 4,590 ------------ International Equities - 10.1% International Securities Fund 21,923 1,672 ------------ TOTAL INVESTMENTS - 99.2% (identified cost $16,040) 16,402 OTHER ASSETS AND LIABILITIES, NET - 0.8% 130 ------------ NET ASSETS - 100.0% 16,532 ============
See accompanying notes which are an integral part of the schedules of investments. 8 2010 Strategy Fund RUSSELL INVESTMENT COMPANY 2020 STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.4% Other Russell Investment Company Series Mutual Funds - Class S Shares Bonds - 38.6% Diversified Bond Fund 389,406 9,018 Multistrategy Bond Fund 922,847 9,496 ------------ 18,514 ------------ Domestic Equities - 41.7% Diversified Equity Fund 158,392 7,820 Quantitative Equity Fund 187,166 7,820 Real Estate Securities Fund 40,837 2,426 Special Growth Fund 37,356 1,935 ------------ 20,001 ------------ International Equities - 19.1% International Securities Fund 100,667 7,679 Emerging Markets Fund 70,388 1,447 ------------ 9,126 ------------ TOTAL INVESTMENTS - 99.4% (identified cost $46,549) 47,641 OTHER ASSETS AND LIABILITIES, NET - 0.6% 285 ------------ NET ASSETS - 100.0% 47,926 ============
See accompanying notes which are an integral part of the schedules of investments. 2020 Strategy Fund 9 RUSSELL INVESTMENT COMPANY 2030 STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.1% Other Russell Investment Company Series Mutual Funds - Class S Shares Bonds - 5.9% Multistrategy Bond Fund 170,550 1,755 ------------ Domestic Equities - 66.4% Diversified Equity Fund 162,303 8,013 Quantitative Equity Fund 191,762 8,012 Real Estate Securities Fund 33,733 2,004 Special Growth Fund 32,471 1,682 ------------ 19,711 ------------ International Equities - 26.8% International Securities Fund 86,319 6,584 Emerging Markets Fund 66,981 1,377 ------------ 7,961 ------------ TOTAL INVESTMENTS - 99.1% (identified cost $28,318) 29,427 OTHER ASSETS AND LIABILITIES, NET - 0.9% 263 ------------ NET ASSETS - 100.0% 29,690 ============
See accompanying notes which are an integral part of the schedules of investments. 10 2030 Strategy Fund RUSSELL INVESTMENT COMPANY 2040 STRATEGY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- INVESTMENTS - 99.1% Other Russell Investment Company Series Mutual Funds - Class S Shares Domestic Equities - 70.4% Diversified Equity Fund 118,668 5,858 Quantitative Equity Fund 140,206 5,858 Real Estate Securities Fund 23,961 1,424 Special Growth Fund 23,408 1,212 ------------ 14,352 ------------ International Equities - 28.7% International Securities Fund 63,429 4,839 Emerging Markets Fund 49,082 1,009 ------------ 5,848 ------------ TOTAL INVESTMENTS - 99.1% (identified cost $19,190) 20,200 OTHER ASSETS AND LIABILITIES, NET - 0.9% 178 ------------ NET ASSETS - 100.0% 20,378 ============
See accompanying notes which are an integral part of the schedules of investments. 2040 Strategy Fund 11 RUSSELL INVESTMENT COMPANY LIFEPOINTS(R) FUNDS NOTES TO QUARTERLY REPORT -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- 1. ORGANIZATION Russell Investment Company (the "Investment Company" or "RIC") is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on nine of these Funds (the "Funds"). The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under an amended and restated master trust agreement dated August 19, 2002. The Investment Company's master trust agreement permits the Board of Trustees (the "Board") to issue an unlimited number of shares of beneficial interest at a $.01 par value per share. Effective March 1, 2006, Class D Shares of the Funds were re-designated Class R3 Shares. On July 1, 2006, the Aggressive Strategy Fund changed its name to the Growth Strategy Fund and the Equity Aggressive Strategy Fund changed its name to the Equity Growth Strategy Fund. On July 1, 2006, Frank Russell Investment Company changed its name to Russell Investment Company and Frank Russell Investment Management Company changed its name to Russell Investment Management Company ("RIMCo"). Each of the Funds listed in the table below allocates its assets by investing in a combination of Class S shares of other of the Investment Company's Funds (the "Underlying Funds"). RIMCo, the Funds' investment adviser, may modify the target asset allocation for any Fund and modify the selection of Underlying Funds for any Fund from time to time. From time to time, each Fund may adjust its investments within set limits based on RIMCo's outlook for the economy, financial markets generally and relative to market valuation of the asset classes represented by each Underlying Fund. Additionally, each Fund may deviate from set limits when, in RIMCo's opinion, it is necessary to do so to pursue the Fund's investment objective. In the future, the Funds may also invest in other funds which are not currently Underlying Funds.
ASSET ALLOCATION TARGETS AS OF JANUARY 31, 2007 ------------------------------------------------------------------------------------------------- EQUITY GROWTH GROWTH BALANCED MODERATE CONSERVATIVE ASSET CLASS/UNDERLYING FUNDS STRATEGY FUND STRATEGY FUND STRATEGY FUND STRATEGY FUND STRATEGY FUND - --------------------------------------------------------------------------------------------------------------------------------- Equities US Equities Diversified Equity Fund 29% 23% 16% 11% 7% Special Growth Fund 6 5 4 3 -- Quantitative Equity Fund 29 23 16 11 7 Real Estate Securities Fund 7 6 5 4 3 International Equities International Securities Fund 24 19 16 11 3 Emerging Markets Fund 5 4 3 -- -- Bonds Diversified Bond Fund -- -- 20 27 22 Short Duration Bond Fund -- -- -- 33 58 Multistrategy Bond Fund -- 20 20 -- -- --- --- --- --- --- 100 100 100 100 100
12 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY LIFEPOINTS(R) FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- Each of the Funds listed in the table below allocates its assets by investing in a combination of Class S of the Underlying Funds. The allocation of these Funds' assets to the Underlying Funds in which it invests will become more conservative over time. Currently, RIMCo will manage each Fund according to its target asset allocation strategy and will not trade actively among Underlying Funds or attempt to capture short-term market opportunities. However, from time to time, RIMCo expects to modify the target asset allocation for any Fund and/or the Underlying Funds in which a Fund invests. In addition, the Funds may in the future invest in other funds which are not currently Underlying Funds.
ASSET ALLOCATION TARGETS AS OF JANUARY 31, 2007 ----------------------------------------------------------------------------- 2010 2020 2030 2040 ASSET CLASS/UNDERLYING FUNDS STRATEGY FUND STRATEGY FUND STRATEGY FUND STRATEGY FUND - ----------------------------------------------------------------------------------------------------------------------------- Equities US Equities Diversified Equity Fund 11% 17% 27% 29% Special Growth Fund 3 4 6 6 Quantitative Equity Fund 11 17 27 29 Real Estate Securities Fund 4 5 7 7 International Equities International Securities Fund 10 16 22 24 Emerging Markets Fund -- 3 5 5 Bonds Diversified Bond Fund 26 18 -- -- Short Duration Bond Fund 35 -- -- -- Multistrategy Bond Fund -- 20 6 -- --- --- --- --- 100 100 100 100
Investment Objectives of the Underlying Funds: Diversified Equity Fund Seeks to provide long term capital growth. Special Growth Fund Seeks to provide long term capital growth. Quantitative Equity Fund Seeks to provide long term capital growth. Real Estate Securities Fund Seeks to provide current income and long term capital growth. International Securities Fund Seeks to provide long term capital growth. Emerging Markets Fund Seeks to provide long term capital growth. Diversified Bond Fund Seeks to provide current income and the preservation of capital. Short Duration Bond Fund Seeks to provide current income and preservation of capital with a focus on short duration securities. Notes to Quarterly Report 13 RUSSELL INVESTMENT COMPANY LIFEPOINTS(R) FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- Multistrategy Bond Fund Seeks to provide current income and capital appreciation. 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 generally accepted accounting principles ("GAAP") for investment companies. The presentation of these schedules of investments in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Quarterly Report. Actual results could differ from those estimates. Security Valuation The Funds value their portfolio securities, the shares of the Underlying Funds, at the current net asset value per share of each Underlying Fund. The Underlying Funds value portfolio securities according to Board-approved Securities Valuation Procedures, including Market Value Procedures, Fair Value Procedures and Pricing Services. Money market fund securities are priced using the amortized cost method of valuation, as are debt obligation securities maturing within 60 days at the time of purchase, unless the Board determines that amortized cost does not represent market value of short-term debt obligations. The Board has delegated the responsibility for administration of the Securities Valuation Procedures to RIMCo. Ordinarily, the Underlying Funds value each portfolio security based on market quotations provided by Pricing Services or alternative pricing services or dealers (when permitted by the Market Value Procedures). Generally, Underlying Fund securities are valued at the close of the market on which they are traded as follows: - US listed equities; equity and fixed income options: Last sale price; last bid price if no last sale; - US over-the-counter equities: Official closing price; last bid price if no closing price; - Listed ADRs/GDRs: Last sale price; last bid price if no sales; - Municipal bonds, US bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price; - Futures: Settlement price. - Investments in other mutual funds are valued at their net asset value per share, calculated at 4 p.m. Eastern time or as of the close of the New York Stock Exchange, whichever is earlier. - The value of swap agreements are equal to the Funds' obligation (or rights) under swap contracts which will generally be equal to the net amounts to be paid or received under the contracts based upon the relative values of the positions held by each party to the contracts. - Equity securities traded on a national securities foreign exchange or an over the counter market (foreign or domestic) are valued on the basis of the official closing price, or lacking the official closing price, at the last sale price of the primary exchange on which the security is traded. If market quotations are not readily available for a security or if subsequent events suggest that a market quotation is not reliable, the Underlying Funds will use the security's fair value, as determined in accordance with the Fair Value Procedures. This generally means that equity securities and fixed income securities listed and traded principally on any national securities exchange are valued on the basis of the last sale price or, lacking any sales, at the closing bid price, on the primary exchange on which the security is traded. The Fair Value Procedures may involve subjective judgments as to the fair value of securities. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market on which they are traded, but rather may be priced by another method that the Funds' Board of Trustees believes reflects fair value. The use of fair value pricing by an Underlying Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using normal pricing methods. Fair value pricing could also cause discrepancies between the daily movement of the value of Underlying Fund shares and daily movement of the benchmark index if the index is valued using another pricing method. 14 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY LIFEPOINTS(R) FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- This policy is intended to assure that the Underlying Funds' net asset values fairly reflect security values as of the time of pricing. Events or circumstances affecting the values of Underlying Fund securities that occur between the closing of the principal markets on which they trade and the time the net asset value of Underlying Fund shares is determined may be reflected in the calculation of net asset values for each applicable Underlying Fund (and each Fund which invests in such Underlying Fund) when the Underlying Funds deem that the particular event or circumstance would materially affect such Underlying Fund's net asset value. Underlying 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. Underlying 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. Underlying Funds that invest in low rated debt securities are also likely to use fair value pricing more often since the markets in which such securities are traded are generally thinner, more limited and less active than those for higher rated securities. Examples of events that could trigger fair value pricing of one or more securities are: a material market movement of the US securities market (defined in the Fair Value Procedures as the movement by any two of four major US Indexes greater than a certain percentage) or other significant event; foreign market holidays if on a daily basis, Fund exposure exceeds 20% in aggregate (all closed markets combined); a company development; a natural disaster; or an armed conflict. Because foreign securities can trade on non-business days, the net asset value of a Fund's portfolio that includes an Underlying Fund which invests in foreign securities may change on days when shareholders will not be able to purchase or redeem fund shares. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds financial statement disclosure. Investment Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost. Investment Income Distributions of income and capital gains from the Underlying Funds are recorded on the ex-dividend date. 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. 3. FEDERAL INCOME TAXES For the period ended January 31, 2007, the cost of investments, net unrealized appreciation (depreciation), for income tax purposes were as follows:
EQUITY GROWTH BALANCED MODERATE CONSERVATIVE GROWTH STRATEGY STRATEGY STRATEGY STRATEGY STRATEGY ------------------------------------------------------------------------------------------------------------------------------ Cost of Investments $ 1,515,415,129 $ 3,131,992,092 $ 4,540,075,855 $ 1,039,042,408 $ 426,177,946 ================ ================ ================ ================ ================ Unrealized Appreciation $ 282,419,362 $ 526,265,512 $ 649,454,200 $ 112,829,254 $ 32,355,884 Unrealized Depreciation -- (1,876,415) (13,498,383) (8,307,641) (5,196,169) ---------------- ---------------- ---------------- ---------------- ---------------- Net Unrealized Appreciation (Depreciation) $ 282,419,362 $ 524,389,097 $ 635,955,817 $ 104,521,613 $ 27,159,715 ================ ================ ================ ================ ================
Notes to Quarterly Report 15 RUSSELL INVESTMENT COMPANY LIFEPOINTS(R) FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - --------------------------------------------------------------------------------
2010 2020 2030 2040 STRATEGY STRATEGY STRATEGY STRATEGY ------------------------------------------------------------------------------------------------------------------ Cost of Investments $ 16,086,388 $ 46,703,489 $ 28,368,037 $ 19,217,656 ================ ================ ================ ================ Unrealized Appreciation $ 343,434 $ 983,866 $ 1,083,476 $ 995,965 Unrealized Depreciation (27,906) (46,514) (24,882) (14,043) ---------------- ---------------- ---------------- ---------------- Net Unrealized Appreciation (Depreciation) $ 315,528 $ 937,352 $ 1,058,594 $ 981,922 ================ ================ ================ ================
16 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY LIFEPOINTS(R) FUNDS SHAREHOLDER REQUESTS FOR ADDITIONAL INFORMATION -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- As a courtesy to Fund shareholders, 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 Fund at (800) 787-7354, (ii) at www.russell.com, (iii) on the Securities and Exchange Commission's website at www.sec.gov, and (iv) at the Securities and Exchange Commission's public reference room. The Board has delegated to RIMCo, 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. RIMCo has established a proxy voting committee ("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 a Fund. A description of the P&P, Guidelines and Portfolio Holdings Disclosure Policy are contained in the Funds' Statement of Additional Information ("SAI"). The SAI is available (i) free of charge, upon request, by calling the Fund at (800) 787-7354, (ii) at www.russell.com, and (iii) on the Securities and Exchange Commission's website at www.sec.gov. Financial Statements of the Underlying Funds can be obtained at no charge by calling the Fund at (800) 787-7354. To reduce expenses, we may mail only one copy of the Funds' prospectus 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 call us at (800) 787-7354 or contact your financial institution and we will begin sending you individual copies thirty days after receiving your request. If you wish to receive the Funds' prospectus and each annual and semi-annual report electronically, please call us at (800) 787-7354 or contact your financial institution. Shareholder Requests for Additional Information 17 [RUSSELL LOGO] Russell Investment Company 909 A Street Tacoma, Washington 98402 253-627-7001 800-787-7354 Fax: 253-591-3495 www.russell.com 36-08-071 (7 01/07) RUSSELL FUNDS [MOUNTAIN GRAPHIC] 2007 Quarterly Report CLASS A AND B SHARES RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND JANUARY 31, 2007 [RUSSELL LOGO] Russell Investment Company Russell Investment Company is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on one of these Funds. Russell Investment Management Company* Responsible for overall management and administration of the Funds. * On July 1, 2006, Frank Russell Investment Management Company changed its name to Russell Investment Management Company. [Blank Page] Russell Investment Company Russell Multi-Manager Principal Protected Fund Quarterly Report January 31, 2007 (Unaudited) Table of Contents
Page Schedule of Investments.............................................. 3 Notes to Schedule of Investments..................................... 7 Notes to Quarterly Report............................................ 8 Shareholder Requests for Additional Information...................... 12
Russell Investment Company - Russell Multi-Manager Principal Protected Fund. Copyright (c) Russell Investment Group 2007. All rights reserved. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company. FUND OBJECTIVES, RISKS, CHARGES AND EXPENSES SHOULD BE CAREFULLY CONSIDERED BEFORE INVESTING. 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 FUND DISTRIBUTORS, INC. MEMBER NASD, PART OF RUSSELL INVESTMENT GROUP. Effective July 1, 2006 Frank Russell Investment Company changed its name to Russell Investment Company ("RIC"). RIC Funds are distributed by Russell Fund Distributors, Inc., and advised by Russell Investment Management Company ("RIMCo"). Effective July 1, 2006 RIMCo changed its name from Frank Russell Investment Management Company. Russell Investment Group and Standard & Poor's Corporation are the owners of the trademarks, service marks, and copyrights related to their respective indexes. Index performance is not indicative of the performance of any specific investment. Indexes are not managed and may not be invested in directly. RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 41.4% Auto and Transportation - 1.3% ArvinMeritor, Inc. 800 15 Burlington Northern Santa Fe Corp. 100 8 Expeditors International Washington, Inc. 900 38 FedEx Corp. 1,300 143 General Motors Corp. 2,000 66 Heartland Express, Inc. 500 8 Lear Corp. 500 17 Pacer International, Inc. 500 16 Tidewater, Inc. 600 31 TRW Automotive Holdings Corp. (AE) 600 16 Union Pacific Corp. 1,700 172 ------------ 530 ------------ Consumer Discretionary - 6.5% Aaron Rents, Inc. 500 15 Aeropostale, Inc. (AE) 500 18 American Eagle Outfitters, Inc. 750 24 AnnTaylor Stores Corp. (AE) 1,100 38 Barnes & Noble, Inc. 600 23 Belo Corp. Class A 900 17 Best Buy Co., Inc. 1,000 50 CBRL Group, Inc. 83 4 CBS Corp. Class B 5,200 162 CEC Entertainment, Inc. (AE) 500 21 Chipotle Mexican Grill, Inc. Class B (AE) 311 17 Circuit City Stores, Inc. 900 18 Coldwater Creek, Inc. (AE) 500 9 Costco Wholesale Corp. 2,500 141 Darden Restaurants, Inc. 1,800 71 Dick's Sporting Goods, Inc. (AE) 500 26 Dolby Laboratories, Inc. Class A (AE) 500 17 Dollar Tree Stores, Inc. (AE) 800 25 DreamWorks Animation SKG, Inc. Class A (AE) 500 14 Dress Barn, Inc. (AE) 1,700 38 Family Dollar Stores, Inc. 1,700 55 Foot Locker, Inc. 2,500 56 GameStop Corp. Class A (AE) 500 27 Gannett Co., Inc. 1,700 99 Google, Inc. Class A (AE) 500 251 Group 1 Automotive, Inc. 500 27 Hasbro, Inc. 2,000 57 IKON Office Solutions, Inc. 700 10 Insight Enterprises, Inc. (AE) 500 10 International Game Technology 1,500 65 Jack in the Box, Inc. (AE) 500 31 Jarden Corp. (AE) 800 29 Jones Apparel Group, Inc. 1,300 44 Limited Brands, Inc. 2,300 64
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Manpower, Inc. 300 22 Marriott International, Inc. Class A 2,900 140 McClatchy Co. Class A 500 19 McDonald's Corp. 4,649 206 Men's Wearhouse, Inc. (The) 1,000 43 Office Depot, Inc. (AE) 2,200 82 Rent-A-Center, Inc. Class A (AE) 600 18 RR Donnelley & Sons Co. 1,200 45 Scholastic Corp. (AE) 500 18 Staples, Inc. 4,800 124 Starbucks Corp. (AE) 2,400 84 TJX Cos., Inc. 4,800 142 United Stationers, Inc. (AE) 100 5 WESCO International, Inc. (AE) 300 18 Wyndham Worldwide Corp. (AE) 1,100 34 Yum! Brands, Inc. 1,800 108 ------------ 2,681 ------------ Consumer Staples - 1.3% Del Monte Foods Co. 1,100 13 General Mills, Inc. 1,900 109 Hormel Foods Corp. 500 19 Kroger Co. (The) 2,500 64 McCormick & Co., Inc. 800 31 Molson Coors Brewing Co. Class B 700 57 PepsiCo, Inc. 3,900 254 ------------ 547 ------------ Financial Services - 10.2% American Home Mortgage Investment Corp. (o) 600 21 American International Group, Inc. 2,400 164 Ameriprise Financial, Inc. 700 41 Annaly Capital Management, Inc. (o) 900 12 Apartment Investment & Management Co. Class A (o) 900 56 Arthur J Gallagher & Co. 700 20 Automatic Data Processing, Inc. 1,900 91 Bank of America Corp. 7,500 394 BB&T Corp. 200 9 CapitalSource, Inc. (o) 1,500 42 Cash America International, Inc. 500 21 CB Richard Ellis Group, Inc. Class A (AE) 100 4 CIT Group, Inc. 1,700 100 Citigroup, Inc. 8,200 452 Colonial BancGroup, Inc. (The) 900 22
Schedule of Investments 3 RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Colonial Properties Trust (o) 500 25 Corus Bankshares, Inc. 1,200 26 FelCor Lodging Trust, Inc. (o) 700 16 Fiserv, Inc. (AE) 600 32 Global Payments, Inc. 1,600 61 Goldman Sachs Group, Inc. 1,100 233 Hospitality Properties Trust (o) 500 24 Huntington Bancshares, Inc. 1,600 37 Lehman Brothers Holdings, Inc. 1,900 156 Lincoln National Corp. 1,700 114 Mellon Financial Corp. 1,700 73 Metlife, Inc. 3,100 193 Moody's Corp. 1,000 72 Morgan Stanley 3,300 273 National Retail Properties, Inc. (o) 600 14 Nationwide Financial Services, Inc. 500 27 Nelnet, Inc. Class A (AE) 500 14 New Century Financial Corp. (o) 900 27 New Plan Excel Realty Trust (o) 700 20 Northern Trust Corp. 1,400 85 Odyssey Re Holdings Corp. 500 20 PNC Financial Services Group, Inc. 2,200 162 Progressive Corp. (The) 900 21 Protective Life Corp. 500 25 Raymond James Financial, Inc. 700 22 Redwood Trust, Inc. (o) 500 32 Regions Financial Corp. 1,817 66 Spirit Finance Corp. (o) 800 10 St. Paul Travelers Cos., Inc. (The) 2,100 107 Stancorp Financial Group, Inc. 500 24 State Street Corp. 1,800 128 TCF Financial Corp. 800 20 Thornburg Mortgage, Inc. (o) 900 24 Wachovia Corp. 4,500 254 Wells Fargo & Co. 6,100 219 Wilmington Trust Corp. 500 21 WR Berkley Corp. 1,200 40 Zenith National Insurance Corp. 500 23 ------------ 4,189 ------------ Health Care - 5.3% Abbott Laboratories 2,800 148 Aetna, Inc. 1,400 59 Amgen, Inc. (AE) 3,100 218 Becton Dickinson & Co. 2,600 200 Biogen Idec, Inc. (AE) 1,900 92 Cephalon, Inc. (AE) 900 65 Express Scripts, Inc. Class A (AE) 500 35 Health Net, Inc. (AE) 1,000 49 Healthspring, Inc. (AE) 600 12 Humana, Inc. (AE) 600 33 Johnson & Johnson 5,200 347 King Pharmaceuticals, Inc. (AE) 2,500 45
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- LifePoint Hospitals, Inc. (AE) 700 24 Medicines Co. (The) (AE) 500 15 Merck & Co., Inc. 4,900 219 Millennium Pharmaceuticals, Inc. (AE) 1,600 18 Mylan Laboratories, Inc. 2,100 46 Schering-Plough Corp. 6,500 163 Universal Health Services, Inc. Class B 700 41 WellCare Health Plans, Inc. (AE) 100 8 WellPoint, Inc. (AE) 2,400 188 Wyeth 3,400 168 ------------ 2,193 ------------ Integrated Oils - 1.7% ConocoPhillips 4,200 279 Exxon Mobil Corp. 3,000 223 Occidental Petroleum Corp. 3,800 176 ------------ 678 ------------ Materials and Processing - 3.0% Acuity Brands, Inc. 500 29 Archer-Daniels-Midland Co. 3,700 118 Celanese Corp. Class A 1,100 29 Cytec Industries, Inc. 500 29 Dow Chemical Co. (The) 4,200 174 Eastman Chemical Co. 800 47 FMC Corp. 500 39 Freeport-McMoRan Copper & Gold, Inc. Class B 2,100 121 Hercules, Inc. (AE) 1,100 22 Huntsman Corp. (AE) 900 19 Jacobs Engineering Group, Inc. (AE) 500 45 Masco Corp. 2,100 67 MeadWestvaco Corp. 1,300 39 Mueller Industries, Inc. 500 16 Olin Corp. 600 10 OM Group, Inc. (AE) 600 29 Packaging Corp. of America 500 11 PPG Industries, Inc. 1,300 86 Quanex Corp. 400 16 Rohm & Haas Co. 1,800 94 Timken Co. 1,200 34 United States Steel Corp. 800 67 URS Corp. (AE) 500 22 USG Corp. (AE) 700 38 Westlake Chemical Corp. 600 20 ------------ 1,221 ------------
4 Schedule of Investments RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Miscellaneous - 0.6% Eaton Corp. 300 23 General Electric Co. 3,400 123 ITT Corp. 1,400 83 Johnson Controls, Inc. 300 28 ------------ 257 ------------ Other Energy - 2.6% Alon USA Energy, Inc. 500 13 Anadarko Petroleum Corp. 2,300 101 Cameron International Corp. (AE) 1,500 79 Chesapeake Energy Corp. 3,000 89 Complete Production Services, Inc. (AE) 500 10 Devon Energy Corp. 2,100 147 Frontier Oil Corp. 1,300 37 Global Industries, Ltd. (AE) 1,500 20 Helmerich & Payne, Inc. 1,400 38 Newfield Exploration Co. (AE) 1,500 64 St. Mary Land & Exploration Co. 600 22 Sunoco, Inc. 1,600 101 Superior Energy Services, Inc. (AE) 800 24 Tesoro Corp. 1,000 82 Valero Energy Corp. 3,100 168 W&T Offshore, Inc. 400 12 Western Refining, Inc. 500 14 Whiting Petroleum Corp. (AE) 100 5 XTO Energy, Inc. 1,000 50 ------------ 1,076 ------------ Producer Durables - 2.7% Andrew Corp. (AE) 1,000 11 Cummins, Inc. 500 67 Emerson Electric Co. 3,600 162 Gardner Denver, Inc. (AE) 1,000 39 Goodrich Corp. 800 39 KB Home 1,000 54 Lam Research Corp. (AE) 1,500 69 Lockheed Martin Corp. 1,900 185 Manitowoc Co., Inc. (The) 1,500 78 MDC Holdings, Inc. 500 29 Meritage Homes Corp. (AE) 500 22 Mettler Toledo International, Inc. (AE) 500 41 MKS Instruments, Inc. (AE) 500 11 Molex, Inc. 1,100 32 Parker Hannifin Corp. 800 66 Pulte Homes, Inc. 1,600 55 Standard-Pacific Corp. 1,000 28 Technitrol, Inc. 500 11 Teradyne, Inc. (AE) 1,900 28
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Toll Brothers, Inc. (AE) 800 27 Waters Corp. (AE) 800 45 ------------ 1,099 ------------ Technology - 4.4% 3Com Corp. (AE) 1,600 6 Altera Corp. (AE) 4,100 82 Anixter International, Inc. (AE) 600 33 Arrow Electronics, Inc. (AE) 1,300 46 Atmel Corp. (AE) 2,000 12 Avaya, Inc. (AE) 1,800 23 Avnet, Inc. (AE) 1,700 53 AVX Corp. 500 7 Benchmark Electronics, Inc. (AE) 600 14 Blackbaud, Inc. 500 12 BMC Software, Inc. (AE) 1,900 65 Brocade Communications Systems, Inc. (AE) 2,900 25 Cadence Design Systems, Inc. (AE) 2,600 49 Ciena Corp. (AE) 900 25 Coherent, Inc. (AE) 500 15 Computer Sciences Corp. (AE) 1,300 68 Cypress Semiconductor Corp. (AE) 1,300 24 Dell, Inc. (AE) 7,800 189 Hewlett-Packard Co. 6,200 268 Ingram Micro, Inc. Class A (AE) 1,000 20 Integrated Device Technology, Inc. (AE) 2,800 42 International Business Machines Corp. 3,200 317 Intersil Corp. Class A 500 12 Komag, Inc. (AE) 100 3 LSI Logic Corp. (AE) 4,100 39 McAfee, Inc. (AE) 700 21 PerkinElmer, Inc. 900 22 RealNetworks, Inc. (AE) 1,400 15 Sanmina-SCI Corp. (AE) 3,100 11 Synopsys, Inc. (AE) 2,000 53 Tellabs, Inc. (AE) 4,800 48 Unisys Corp. (AE) 3,800 33 Utstarcom, Inc. (AE) 2,500 22 VeriSign, Inc. (AE) 1,100 26 Vishay Intertechnology, Inc. (AE) 2,400 32 Western Digital Corp. (AE) 3,300 65 ------------ 1,797 ------------ Utilities - 1.8% American Electric Power Co., Inc. 1,600 70 AT&T, Inc. 1,192 45 Atmos Energy Corp. 500 16 DTE Energy Co. 1,300 60
Schedule of Investments 5 RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Edison International 2,000 90 Embarq Corp. 800 44 Golden Telecom, Inc. 400 21 Idacorp, Inc. 500 18 Northeast Utilities 1,200 33 Pepco Holdings, Inc. 800 20 Verizon Communications, Inc. 6,800 262 WGL Holdings, Inc. 400 14 Windstream Corp. (AE) 3,900 58 ------------ 750 ------------ TOTAL COMMON STOCKS (cost $15,217) 17,019 ------------ LONG-TERM DEBT OBLIGATIONS - 52.3% United States Government Treasuries - 52.3% United States Treasury Principal Only STRIP Zero Coupon due 02/15/08 18,030 17,118 Zero Coupon due 05/15/08 4,620 4,334 ------------ TOTAL LONG-TERM DEBT OBLIGATIONS (cost $21,492) 21,452 ------------ SHORT-TERM INVESTMENTS - 6.4% Russell Investment Company Money Market Fund 592,000 592 Russell Investment Company US Government Money Market Fund 1,914,000 1,914 United States Treasury Bills (c)(z)(sec.) 4.956% due 03/15/07 10 10 4.967% due 03/15/07 99 99 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $2,615) 2,615 ------------ TOTAL INVESTMENTS - 100.1% (identified cost $39,324) 41,086 OTHER ASSETS AND LIABILITIES, NET - (0.1%) (53) ------------ NET ASSETS - 100.0% 41,033 ============
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions S&P 500 E-Mini Index (CME) expiration date 03/07 (15) 1,082 4 United States Treasury 2 Year Notes expiration date 03/07 (3) 611 (2) --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 2 ===============
See accompanying notes which are an integral part of the schedule of investments. 6 Schedule of Investments RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND NOTES TO SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- FOOTNOTES: (AE) Nonincome-producing security. (o) Real Estate Investment Trust (REIT). (sec.) All or a portion of the shares of this security are held as collateral in connection with futures contracts purchased (sold) or options written by the Fund. (z) Rate noted is yield-to-maturity from date of acquisition. (c) At amortized cost, which approximates market. ABBREVIATION: STRIP - Separate Trading of Registered Interest and Principal of Securities Notes to Schedule of Investments 7 RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND NOTES TO QUARTERLY REPORT -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- 1. ORGANIZATION Russell Investment Company (the "Investment Company" or "RIC") is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on one of these Funds (the "Fund"). The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under an amended and restated master trust agreement dated August 19, 2002. The Investment Company's master trust agreement permits the Board of Trustees (the "Board") to issue an unlimited number of shares of beneficial interest at a $.01 par value per share. On July 1, 2006, Frank Russell Investment Company changed its name to Russell Investment Company and Frank Russell Investment Management Company changed its name to Russell Investment Management Company ("RIMCo"). The Fund has an Offering Period, a Guarantee Period and a Post Guarantee Period. Shares of the Fund were offered during the Offering Period but are not offered during the Guarantee Period, except in connection with reinvestment of distributions and dividends. Shares of the Fund will be offered on a continuous basis during the Post Guarantee Period without the principal protection feature. During the Guarantee Period, the Fund seeks some capital growth, while seeking to preserve principal. As of January 31, 2007, the Fund's allocation to equity securities was approximately 40% and the Fund's allocation to fixed income securities was approximately 60% of total net assets. Provided that all dividends and distributions received from the Fund have been reinvested and no shares have been redeemed by a shareholder, the Fund guarantees that the amount distributed, if any, to each shareholder at the end of the Guarantee Period will be no less than the value of that shareholder's investment as of the inception of the Guarantee Period less certain expenses. Certain expenses which are not covered by the Expense Limitation Agreement, such as litigation and other expenses not incurred in the ordinary course of the Fund's business, will reduce the Guarantee Amount. The Fund's Guarantee is backed by an unconditional and irrevocable financial guarantee from Ambac Assurance Corporation ("Ambac"), a financial guarantor and an operating subsidiary of Ambac Financial Group, Inc., pursuant to a financial guarantee insurance policy issued by Ambac for the benefit of the shareholders of the Fund. The Fund will pay to Ambac a fee equal to 0.75% per annum of the average daily net assets of the Fund during the Guarantee Period for providing the financial guarantee insurance policy. If the value of a shareholder's account is less than the Guaranteed Amount on the Guarantee Maturity Date, the Fund will be unable to meet its obligations under the Guarantee. If the Fund is unable to meet its obligations under the Guarantee on the Guarantee Maturity Date, the insurance policy requires Ambac to pay the Fund an amount sufficient to ensure that all shareholders would be able to redeem their shares on the Guarantee Maturity Date for an amount equal to their respective Guaranteed Amounts on the Guarantee Maturity Date. During the Post Guarantee Period, which will commence immediately following the Guarantee Period, the Fund seeks long-term growth of capital through investments primarily in common stocks and other equity securities. The following table presents the time periods of the Fund's three phases: Offering Period 01/21/03 - 02/27/03 Guarantee Period 03/03/03 - 03/03/08 Post Guarantee Period Commencement 03/04/08
2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies consistently followed by the Fund in the preparation of this Quarterly Report. These policies are in conformity with generally accepted accounting principles ("GAAP") for investment companies. The presentation of the schedule of investments in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Quarterly Report. Actual results could differ from those estimates. Security Valuation The Fund values portfolio securities according to Board-approved Securities Valuation Procedures, including Market Value Procedures, Fair Value Procedures and Pricing Services. Debt obligation securities maturing within 60 days at the time of purchase are priced using the amortized cost method of valuation, unless the Board determines that amortized cost does not represent market value of short-term debt obligations. 8 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- Ordinarily, the Fund values each portfolio security based on market quotations provided by Pricing Services or alternative pricing services or dealers (when permitted by the Market Value Procedures). Generally, Fund securities are valued at the close of the market on which they are traded as follows: - US listed equities; equity and fixed income options: Last sale price; last bid price if no last sale price; - US over-the-counter equities: Official closing price; last bid price if no closing price; - Listed ADRs/GDRs: Last sale price; last bid price if no sales; - Municipal bonds, US bonds: Evaluated bid price; broker quote if no evaluated bid price; - Futures: Settlement price. - Investments in other mutual funds are valued at their net asset value per share, calculated at 4 p.m. Eastern time or as of the close of the New York Stock Exchange, whichever is earlier. - Short-term investments purchased by the Fund and maturing within 60 days of the date of purchase are valued at "amortized cost" unless the Board of Trustees determines that amortized cost does not represent fair value. - The value of swap agreements is equal to the Fund's obligation (or rights) under swap contracts which will generally be equal to the net amounts to be paid or received under the contracts based upon the relative values of the positions held by each party to the contracts. If market quotations are not readily available for a security or if subsequent events suggest that a market quotation is not reliable, the Fund will use the security's fair value, as determined in accordance with the Fair Value Procedures. This generally means that equity securities and fixed income securities listed and traded principally on any national securities exchange are valued on the basis of the last sale price or, lacking any sales, at the closing bid price, on the primary exchange in which the security is traded. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market on which they are traded, but rather may be priced by another method that the Fund's Board of Trustees believes reflects fair value. The use of fair value pricing by the Fund may cause the net asset of its shares to differ significantly from the net asset value that would be calculated using normal pricing methods. Fair value pricing could also cause discrepancies between the daily movement of the value of Fund shares and daily movement of the benchmark index if the index is valued using another pricing method. This policy is intended to assure that the Fund's net asset values fairly reflect security values as of the time of pricing. 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 net asset value of Fund shares is determined may be reflected in the calculation of net asset values for the Fund when the Fund deems that the particular event or circumstance would materially affect the Fund's net asset value. Investments in frequently traded exchange listed securities will use fair value pricing in limited circumstances since reliable market quotations will often be readily available. Examples of events that could trigger fair value pricing of one or more securities are: a material market movement of the US securities market (defined in the Fair Value Procedures as the movement by any two of four major US Indexes greater than a certain percentage) or other significant event; a company development; a natural disaster; or an armed conflict. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosure. Investment Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost incurred by each money manager within a particular Fund. Investment Income Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. All premiums and discounts, including original issue discounts, are amortized/accreted using the interest method. Notes to Quarterly Report 9 RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- Derivatives To the extent permitted by the investment objectives, restrictions and policies set forth in the Fund's Prospectus and Statement of Additional Information, the Fund may participate in various derivative-based transactions. Derivative securities are instruments or agreements whose value is derived from an underlying security or index. They include options, futures, swaps, forwards, structured notes and stripped securities. These instruments offer unique characteristics and risks that assist the Fund in meeting its investment strategies. The Fund typically uses derivatives in two ways: hedging and return enhancement. The Fund may use a hedging strategy for its cash reserves to achieve a strategy of being fully invested by exposing those reserves to the performance of appropriate markets by purchasing equity or fixed income securities, as appropriate, and/or derivatives. Hedging is also used by the Fund 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. By purchasing certain instruments, the Fund may more effectively achieve the desired portfolio characteristics that assist the Fund in meeting its investment objectives. Depending on how the derivatives are structured and utilized, the risks associated with them may vary widely. These risks are generally categorized as market risk, liquidity risk and counterparty or credit risk. Options The Fund may purchase and sell (write) call and put options on securities and securities indices, provided such options are traded on a national securities exchange or in an over-the-counter market. When the 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 market 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 stock value 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 security. If an option which the Fund has written either 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. Realized gains (losses) on purchased options are included in net realized gain (loss) from investments. The Fund's use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Fund's exposure to market risk. The risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities and interest rates. Futures Contracts The Fund utilizes futures contracts to manage allocations between equity and fixed-income weightings. The face or contract amounts of these instruments reflect the extent of the Fund's exposure to market risk. The primary risks associated with the use of futures contracts are an imperfect correlation between the change in market value of the securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Upon entering into a futures contract, the Fund is required to deposit with a broker an amount, termed the initial margin, which typically represents 5% of the purchase price indicated in the futures contract. Payments to and from the broker, known as variation margin, are 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. Index Swap Agreements The Fund may enter into index swap agreements as an additional hedging strategy for cash reserves held by the Fund or to effect investment transactions consistent with the Fund's investment objectives and strategies. Swap agreements are two party 10 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- contracts entered into primarily by institutional investors for periods ranging from a few weeks to more than one year. In a standard 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). Amounts paid to and received from the swap counterparties representing capital appreciation and depreciation on the underlying securities and accrued interest expense and interest income are recorded as net realized gain (loss). The Fund is exposed to credit risk in the event of non-performance by the swap counterparties; however, the Fund does not anticipate non-performance by the counterparties. Interest Rate Swap Agreements The Fund may enter into interest rate swap agreements, on either an asset-based or liability basis, depending on whether they are hedging their assets or their liabilities, and will usually enter into interest rate swaps on a net basis, i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments. When the Fund engages in an interest rate swap, it exchanges its obligations to pay or rights to receive payments for the obligations or rights to receive payments of another party (i.e., an exchange of floating rate payments for fixed rate payments). The Fund expects 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. The net amount of the excess, if any, of the Fund's obligations over their entitlements with respect to each interest rate swap will be accrued on a daily basis and an amount of cash or liquid high-grade debt securities having an aggregate net asset value at least equal to the accrued excess will be maintained in a segregated account by the Fund's custodian. To the extend that the Fund enters into interest rate swaps on other than a net basis, the amount maintained in a segregated account will be the full amount of the Fund's obligations, if any, with respect to such interest rate swaps, accrued on a daily basis. If there is a default by the other party to such a transaction, the Fund will have contractual remedies pursuant to the agreement related to the transaction. The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the swap market has become relatively liquid. Guarantees In the normal course of business the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss to be remote. 3. RELATED PARTIES The Fund is permitted to invest its cash reserves (i.e., cash awaiting investment or cash held to meet redemption requests or to pay expenses) in the Investment Company's Money Market Fund and US Government Money Market Fund (collectively the "Money Market Funds") (two of the Funds of the Investment Company not presented herein). As of January 31, 2007, $592,000 of the RIC Money Market Fund's net assets represents investments by this Fund and $2,626,517,107 represents the investment by other RIC Funds not presented herein. As of January 31, 2007, $1,914,000 of the RIC US Government Money Market Fund's net assets represents investment by this Fund. 4. FEDERAL INCOME TAXES At January 31, 2007, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of Investments $ 39,337,019 ================ Unrealized Appreciation $ 2,067,898 Unrealized Depreciation (319,392) ---------------- Net Unrealized Appreciation (Depreciation) $ 1,748,506 ================
Notes to Quarterly Report 11 RUSSELL INVESTMENT COMPANY RUSSELL MULTI-MANAGER PRINCIPAL PROTECTED FUND SHAREHOLDER REQUESTS FOR ADDITIONAL INFORMATION -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- As a courtesy to Fund shareholders, 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 Fund at (800) 787-7354, (ii) at www.russell.com, (iii) on the Securities and Exchange Commission's website at www.sec.gov, and (iv) at the Securities and Exchange Commission's public reference room. The Board has delegated to RIMCo, 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 Fund may be invested. RIMCo has established a proxy voting committee ("Committee") and has adopted written proxy voting policies and procedures ("P&P") and proxy voting guidelines ("Guidelines"). The Fund maintains 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 a Fund. A description of the P&P, Guidelines and Portfolio Holdings Disclosure Policy are contained in the Fund's Statement of Additional Information ("SAI"). The SAI is available (i) free of charge, upon request, by calling the Fund at (800) 787-7354, and (ii) on the Securities and Exchange Commission's website at www.sec.gov. Ambac Assurance Corporation, a Wisconsin domiciled stock insurance company (the "Insurer"), is the issuer of a financial guarantee policy for the benefit of shareholders of the Fund. If the Fund is unable to meet its obligations under the guarantee on the Guarantee Maturity Date, the insurance policy requires Ambac to pay the Fund an amount sufficient to ensure that all shareholders would be able to redeem their shares on the Guarantee Maturity Date for an amount equal to their respective guaranteed amounts on the Guarantee Maturity Date. Ambac is a wholly-owned subsidiary of AFG, a publicly-held company. AFG is subject to the informational requirements of the Securities Exchange Act, and in accordance therewith files reports and other information with the SEC. Such reports and other information, including AFG's most recent annual or quarterly report, may be inspected and copied at the public reference facilities maintained by the Securities and Exchange Commission. To reduce expenses, we may mail only one copy of the Fund's prospectus 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 call us at (800) 787-7354 or contact your financial institution and we will begin sending you individual copies thirty days after receiving your request. If you wish to receive the Fund's prospectus and each annual and semi-annual report electronically, please call us at (800) 787-7354 or contact your financial institution. 12 Shareholder Requests for Additional Information [RUSSELL LOGO] Russell Investment Company 909 A Street Tacoma, Washington 98402 253-627-7001 800-787-7354 Fax: 253-591-3495 www.russell.com 36-08-095 (1 01/07) MONEY MARKET FUNDS [MOUNTAIN GRAPHIC] 2007 Quarterly Report CLASS A AND S SHARES: MONEY MARKET FUND CLASS S SHARES: US GOVERNMENT MONEY MARKET FUND TAX FREE MONEY MARKET FUND JANUARY 31, 2007 [RUSSELL LOGO] Russell Investment Company Russell Investment Company is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on three of these Funds. Russell Investment Management Company* Responsible for overall management and administration of the Funds. * On July 1, 2006, Frank Russell Investment Management Company changed its name to Russell Investment Management Company. [Blank Page] Russell Investment Company Money Market Funds Quarterly Report January 31, 2007 (Unaudited) Table of Contents
Page Money Market Fund.................................................... 3 US Government Money Market Fund...................................... 7 Tax Free Money Market Fund........................................... 8 Notes to Schedules of Investments.................................... 14 Notes to Quarterly Report............................................ 15 Shareholder Requests for Additional Information...................... 17
Russell Investment Company - Money Market Funds. Copyright (c) Russell Investment Group 2007. All rights reserved. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company. FUND OBJECTIVES, RISKS, CHARGES AND EXPENSES SHOULD BE CAREFULLY CONSIDERED BEFORE INVESTING. 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 FUND DISTRIBUTORS, INC. MEMBER NASD, PART OF RUSSELL INVESTMENT GROUP. Effective July 1, 2006 Frank Russell Investment Company changed its name to Russell Investment Company ("RIC"). RIC Funds are distributed by Russell Fund Distributors, Inc., and advised by Russell Investment Management Company ("RIMCo"). Effective July 1, 2006 RIMCo changed its name from Frank Russell Investment Management Company. Russell Investment Group and Standard & Poor's Corporation are the owners of the trademarks, service marks, and copyrights related to their respective indexes. Index performance is not indicative of the performance of any specific investment. Indexes are not managed and may not be invested in directly. RUSSELL INVESTMENT COMPANY MONEY MARKET FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL AMOUNT ($) RATE DATE OF VALUE OR SHARES % MATURITY# $ - -------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES - 38.0% BNP Paribas (E) 17,900 5.300 10/03/07 17,896 BNP Paribas (E)(A) 99,000 5.345 12/20/07 99,000 Calyon New York (E) 20,000 5.344 08/10/07 20,002 Calyon New York (E) 15,000 5.300 09/13/07 14,997 Caterpillar Financial Services Corp. (E) 25,000 5.445 08/20/07 25,014 Giro Balanced Funding Corp. (E) 30,000 5.340 06/15/07 30,000 Giro Balanced Funding Corp. (E) 36,000 5.335 07/25/07 36,000 Goldman Sachs Group Inc. (E) 66,000 5.464 03/30/07 66,014 Goldman Sachs Group Inc. (E) 45,840 5.485 07/02/07 45,871 Goldman Sachs Group Inc. (E)(A) 15,000 5.445 09/14/07 15,000 Goldman Sachs Group Inc. (E) 75,000 5.476 11/05/07 75,026 HSBC Bank USA (E) 30,000 5.360 07/27/07 30,004 HSBC Bank USA (E) 20,000 5.435 09/21/07 20,013 HSBC Finance Corp. (E) 10,800 5.525 02/09/07 10,800 HSBC Finance Corp. 14,847 7.875 03/01/07 14,878 HSBC Finance Corp. 57,150 5.510 07/27/07 57,197 HSBC Finance Corp. (E) 100,000 5.400 10/04/07 100,050 Lehman Brothers Holding Inc. (E) 110,000 5.340 06/26/07 110,001 Merrill Lynch & Co., Inc. (E) 50,000 5.460 04/26/07 50,018 Merrill Lynch & Co., Inc. (E) 18,000 5.335 05/29/07 18,000 Merrill Lynch & Co., Inc. (E) 40,000 5.390 06/15/07 40,009 Merrill Lynch & Co., Inc. (E) 36,000 5.480 08/27/07 36,024 Merrill Lynch & Co., Inc. (E) 36,000 5.485 10/19/07 36,040 Metlife Insurance Company of Connecticut (E) 75,000 5.444 11/12/07 75,000 Metropolitan Life Global Funding (E) 34,500 5.431 03/16/07 34,504 Metropolitan Life Global Funding (E) 72,628 5.430 10/05/07 72,674 Metropolitan Life Insurance Co. (E) 100,000 5.430 10/15/07 100,000 Morgan Stanley (E) 22,500 5.499 02/15/07 22,501 Morgan Stanley 52,935 5.485 07/27/07 52,973 Morgan Stanley (E) 73,361 5.485 01/18/08 73,465 Morgan Stanley (E) 90,000 5.360 02/01/08 90,000 New York Life Insurance Co. (E) 90,000 5.423 05/16/07 90,000 New York Life Insurance Co. (E) 50,000 5.423 11/16/07 50,000 Principal Life Income Funding (E) 30,800 5.324 11/15/07 30,795 Protective Life Insurance Company (E) 50,000 5.520 02/23/07 50,000 Royal Bank of Scotland PLC (E)(A) 13,700 5.365 12/21/07 13,704 Societe Generale (NY) (E) 50,000 5.458 06/04/07 50,000 Tango Finance Corp. (E) 50,000 5.354 05/15/07 50,001 Tango Finance Corp. (E) 50,000 5.313 09/10/07 49,997 Wachovia Corp. (E) 5,500 5.410 07/20/07 5,503 Wachovia Corp. (E) 12,880 5.440 07/20/07 12,888 Westpac Banking Corp. (E)(A) 100,000 5.430 05/25/07 100,030 ------------ TOTAL CORPORATE BONDS AND NOTES (amortized cost $1,991,889) 1,991,889 ------------ REGISTERED INVESTMENT COMPANY FUNDS - 0.0% Merrill Lynch Premier Institutional Fund 361,495 361 ------------ TOTAL REGISTERED INVESTMENT COMPANY FUNDS (amortized cost $361) 361 ------------
Money Market Fund 3 RUSSELL INVESTMENT COMPANY MONEY MARKET FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL AMOUNT ($) RATE DATE OF VALUE OR SHARES % MATURITY# $ - -------------------------------------------------------------------------------------------------------------------------- DOMESTIC COMMERCIAL PAPER - 48.7% BTM Capital Corp. 20,000 5.280 02/06/07 19,985 BTM Capital Corp. 10,000 5.275 02/09/07 9,988 BTM Capital Corp. 75,000 5.275 02/12/07 74,879 BTM Capital Corp. 25,000 5.290 02/13/07 24,956 BTM Capital Corp. 30,000 5.280 03/14/07 29,820 BTM Capital Corp. 30,000 5.280 03/19/07 29,798 BTM Capital Corp. 50,000 5.270 03/27/07 49,605 Central American Bank For Economic Integration 50,000 5.290 02/06/07 49,963 Central American Bank For Economic Integration 35,000 5.300 02/12/07 34,943 Central American Bank For Economic Integration 50,000 5.290 03/02/07 49,787 Citigroup Funding Inc. 100,000 5.280 02/15/07 99,795 Co-Op Association of Tractor Dealers - Series B 9,890 5.290 02/01/07 9,890 Co-Op Association of Tractor Dealers - Series B 17,218 5.310 02/12/07 17,190 Co-Op Association of Tractor Dealers - Series B 16,690 5.280 02/16/07 16,653 Co-Op Association of Tractor Dealers - Series B 8,517 5.280 02/20/07 8,493 Co-Op Association of Tractor Dealers - Series B 10,000 5.320 02/20/07 9,972 Co-Op Association of Tractor Dealers - Series B 10,057 5.280 02/23/07 10,025 Co-Op Association of Tractor Dealers - Series B 26,032 5.280 02/26/07 25,937 Co-Op Association of Tractor Dealers - Series B 4,806 5.280 03/15/07 4,776 Co-Op Association of Tractor Dealers - Series B 17,153 5.280 03/23/07 17,027 Co-Op Association of Tractor Dealers - Series B 10,695 5.280 04/03/07 10,599 Co-Op Association of Tractor Dealers - Series B 8,500 5.260 04/11/07 8,414 Dealers Capital Access Trust 42,000 5.280 02/01/07 42,000 Dealers Capital Access Trust 11,500 5.300 02/09/07 11,486 Dealers Capital Access Trust 7,203 5.300 02/13/07 7,190 Dealers Capital Access Trust 4,066 5.280 02/15/07 4,058 Dealers Capital Access Trust 10,500 5.280 02/22/07 10,468 Dealers Capital Access Trust 18,000 5.290 02/23/07 17,942 Dealers Capital Access Trust 17,000 5.280 03/23/07 16,875 Dealers Capital Access Trust 3,250 5.260 03/30/07 3,223 Dealers Capital Access Trust 15,582 5.280 04/02/07 15,445 Dealers Capital Access Trust 3,587 5.270 04/23/07 3,544 Fairway Finance 31,130 5.270 02/12/07 31,080 Fairway Finance 61,351 5.270 02/14/07 61,234 Galleon Capital Corp. 50,000 5.270 02/27/07 49,810 Galleon Capital Corp. 151,146 5.275 02/28/07 150,548 Giro Balanced Funding Corp. 75,000 5.280 02/06/07 74,945 Giro Balanced Funding Corp. 50,000 5.280 02/07/07 49,956 Giro Balanced Funding Corp. 38,000 5.290 02/15/07 37,922 Giro Balanced Funding Corp. 20,092 5.260 04/16/07 19,875 Gotham Funding Corp. 15,000 5.310 02/07/07 14,987 Gotham Funding Corp. 92,796 5.280 02/09/07 92,687 HSBC Finance Corp. 50,000 5.270 02/28/07 49,802 Ivory Funding Corp. 7,333 5.280 02/20/07 7,313 Liquid Funding, Ltd. 50,000 5.280 02/05/07 49,971 Liquid Funding, Ltd. 50,000 5.280 02/07/07 49,956 Liquid Funding, Ltd. 50,000 5.280 02/08/07 49,949 Liquid Funding, Ltd. 100,000 5.280 02/28/07 99,604 Lockhart Funding LLC 25,000 5.290 02/05/07 24,985 Lockhart Funding LLC 59,500 5.280 02/13/07 59,395 Lockhart Funding LLC 20,000 5.300 02/14/07 19,962
4 Money Market Fund RUSSELL INVESTMENT COMPANY MONEY MARKET FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL AMOUNT ($) RATE DATE OF VALUE OR SHARES % MATURITY# $ - -------------------------------------------------------------------------------------------------------------------------- Lockhart Funding LLC 18,840 5.280 03/12/07 18,732 Lockhart Funding LLC 43,500 5.270 03/14/07 43,239 Lockhart Funding LLC 6,000 5.280 03/30/07 5,950 Lockhart Funding LLC 15,059 5.260 04/09/07 14,912 Lockhart Funding LLC 50,000 5.260 04/12/07 49,489 Long Lane Master Trust IV 16,225 5.290 02/05/07 16,215 Long Lane Master Trust IV 100,000 5.300 02/20/07 99,720 Long Lane Master Trust IV 66,615 5.270 02/26/07 66,371 Long Lane Master Trust IV 25,000 5.310 02/26/07 24,908 Louis Dreyfus Corp. (CAI) 32,700 5.300 02/01/07 32,700 Park Avenue Receivables Corp. 35,700 5.270 02/14/07 35,632 Park Avenue Receivables Corp. 110,889 5.270 02/15/07 110,662 Three Pillars Funding Corp. 118,479 5.270 02/13/07 118,271 Three Pillars Funding Corp. 11,630 5.270 02/15/07 11,606 Three Pillars Funding Corp. 10,748 5.290 02/16/07 10,724 Three Pillars Funding Corp. 56,789 5.275 02/20/07 56,631 Three Pillars Funding Corp. 25,118 5.270 02/26/07 25,026 Victory Receivables Corp. 70,000 5.270 02/12/07 69,888 ------------ TOTAL DOMESTIC COMMERCIAL PAPER (amortized cost $2,549,383) 2,549,383 ------------ EURODOLLAR CERTIFICATES OF DEPOSIT - 3.6% BNP Paribas 36,311 5.280 02/01/07 36,311 Societe Generale (Cayman) 150,000 5.300 02/01/07 150,000 ------------ TOTAL EURODOLLAR CERTIFICATES OF DEPOSIT (amortized cost $186,311) 186,311 ------------ UNITED STATES GOVERNMENT AGENCIES - 0.1% AID to INH Portugal Guaranteed Note, weekly demand (LIBOR Floater) (E)(B) 6,875 5.591 12/01/17 6,939 ------------ TOTAL UNITED STATES GOVERNMENT AGENCIES (amortized cost $6,939) 6,939 ------------ YANKEE CERTIFICATES OF DEPOSIT - 9.5% Barclays Bank PLC (NY) 50,000 5.320 01/16/08 50,000 Calyon New York 50,000 5.130 03/08/07 50,000 Calyon New York 66,500 5.250 04/03/07 66,500 Calyon New York 50,000 5.650 07/23/07 50,000 Charter One Bank NA 55,000 5.340 02/27/07 55,000 Charter One Bank NA 42,000 5.325 03/19/07 42,000 Citizens Bank N.A. 50,000 5.330 03/20/07 50,000 Deutsche Bank AG (NY) 35,000 5.015 03/12/07 35,000
See accompanying notes which are an integral part of the schedules of investments. Money Market Fund 5 RUSSELL INVESTMENT COMPANY MONEY MARKET FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL AMOUNT ($) RATE DATE OF VALUE OR SHARES % MATURITY# $ - -------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG (NY) 50,000 5.400 01/23/08 50,000 Royal Bank of Canada (NY) 50,000 5.420 06/04/07 50,000 ------------ TOTAL YANKEE CERTIFICATES OF DEPOSIT (amortized cost $498,500) 498,500 ------------ TOTAL INVESTMENTS - 99.9% (amortized cost $5,233,383) (+) 5,233,383 OTHER ASSETS AND LIABILITIES, NET - 0.1% 5,085 ------------ NET ASSETS - 100.0% 5,238,468 ============
See accompanying notes which are an integral part of the schedules of investments. 6 Money Market Fund RUSSELL INVESTMENT COMPANY US GOVERNMENT MONEY MARKET FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE AMOUNTS ($) RATE OF VALUE OR SHARES % MATURITY# $ - -------------------------------------------------------------------------------------------------------------------------- UNITED STATES GOVERNMENT AGENCIES - 4.3% Federal Home Loan Mortgage Corp. 1,000 3.000 05/29/07 993 ------------ TOTAL INVESTMENTS - 4.3% (amortized cost $993) 993 ------------ REPURCHASE AGREEMENT - 96.1% Agreement with Barclays and The Bank of New York (Tri-party) of $22,305 dated January 31, 2007 at 5.240% to be repurchased at $22,309 on February 1, 2007, collateralized by: $23,127 par United States Government Agency Note, valued at $22,752 22,305 ------------ TOTAL REPURCHASE AGREEMENT (identified cost $22,305) 22,305 ------------ TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS - 100.4% (cost $23,298) (+) 23,298 OTHER ASSETS AND LIABILITIES, NET - (0.4%) (95) ------------ NET ASSETS - 100.0% 23,203 ============
See accompanying notes which are an integral part of the schedules of investments. US Government Money Market Fund 7 RUSSELL INVESTMENT COMPANY TAX FREE MONEY MARKET FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- SHORT-TERM TAX-EXEMPT OBLIGATIONS - 99.6% Arkansas - 0.8% ABN AMRO Munitops Certificate Trust Revenue Bonds, weekly demand (E)(u) 500 3.660 03/01/14 500 ------------ Colorado - 1.5% Colorado Health Facilities Authority Revenue Bonds, weekly demand (E)(u) 500 3.650 10/01/30 500 County of Boulder Colorado Revenue Bonds, annual demand (E)(u) 435 3.700 12/01/08 435 ------------ 935 ------------ Delaware - 1.6% Delaware State Economic Development Authority Revenue Bonds, weekly demand (E)(u) 450 3.700 12/01/15 450 New Castle County Delaware Revenue Bonds, weekly demand (E)(u) 495 3.640 08/01/31 495 ------------ 945 ------------ Florida - 2.1% City of Gainesville Florida Revenue Bonds, weekly demand (E) 800 3.730 10/01/26 800 Dade County Industrial Development Authority Revenue Bonds, weekly demand (E) 400 3.740 06/01/21 400 Lee County Hospital Board Revenue Bonds, weekly demand (E) 100 3.750 04/01/27 100 ------------ 1,300 ------------ Georgia - 2.4% Gainesville & Hall County Development Authority Revenue Bonds, weekly demand (E)(u) 1,200 3.740 11/15/30 1,200 Gwinnett County Development Authority Revenue Bonds, weekly demand (E)(u) 65 3.620 03/01/17 65 Smyrna Housing Authority Revenue Bonds, weekly demand (E) 200 3.500 06/01/25 200 ------------ 1,465 ------------ Hawaii - 3.3% State of Hawaii General Obligation Unlimited, weekly demand (E)(u) 2,000 3.660 07/01/17 2,000 ------------ Illinois - 11.4% Illinois Educational Facilities Authority Revenue Bonds, weekly demand (E)(u) 100 3.550 11/01/25 100 Illinois Educational Facilities Authority Revenue Bonds, weekly demand (E)(u) 800 3.680 06/01/29 800 Illinois Finance Authority Revenue Bonds, weekly demand (E)(u) 845 3.520 02/01/19 845 Illinois Finance Authority Revenue Bonds, weekly demand (E)(u) 750 3.740 04/01/21 750 Illinois Finance Authority Revenue Bonds, weekly demand (E)(u) 600 3.520 02/01/35 600 Oakbrook Terrace Illinois Revenue Bonds, weekly demand (E)(u) 2,100 3.650 12/01/25 2,100 State of Illinois General Obligation Unlimited, weekly demand (E) 1,775 3.750 08/01/24 1,775 ------------ 6,970 ------------
8 Tax Free Money Market Fund RUSSELL INVESTMENT COMPANY TAX FREE MONEY MARKET FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Iowa - 0.6% Iowa Higher Education Loan Authority Revenue Bonds, weekly demand (E)(u) 250 3.780 03/01/30 250 Iowa Higher Education Loan Authority Revenue Bonds, weekly demand (E)(u) 100 3.780 10/01/33 100 ------------ 350 ------------ Kansas - 3.5% Kansas Development Finance Authority Revenue Bonds, weekly demand (E) 600 3.730 12/01/18 600 Lenexa Kansas Revenue Bonds, weekly demand (E) 1,080 3.630 02/01/23 1,080 Wyandotte County Kansas City Unified Government General Obligation Unlimited Notes, weekly demand (E) 480 3.730 04/01/07 480 ------------ 2,160 ------------ Kentucky - 1.6% County of Jefferson Kentucky Revenue Bonds, weekly demand (E)(u) 960 3.650 10/01/19 960 ------------ Maryland - 1.1% County of Montgomery Maryland, monthly demand (E) 641 3.750 04/01/14 641 ------------ Massachusetts - 0.9% Mashpee Water District Notes 350 4.500 08/16/07 351 Massachusetts Development Finance Agency Revenue Bonds, weekly demand (E) 100 3.650 07/01/35 100 Massachusetts Housing Finance Agency Revenue Bonds, weekly demand (E) 100 3.640 06/01/34 100 ------------ 551 ------------ Michigan - 4.0% Lansing Economic Development Corp. Revenue Bonds, semiannual demand (E)(u) 1,320 4.000 05/01/15 1,320 Northville Township Economic Development Corp. Revenue Bonds, weekly demand (E)(u) 500 3.650 05/01/14 500 Oakland County Economic Development Corp. Revenue Bonds, semiannual demand (E)(u) 640 4.020 08/01/15 640 ------------ 2,460 ------------ Minnesota - 4.4% Arden Hills Minnesota Revenue Bonds, weekly demand (E)(u) 400 3.780 09/01/29 400 City of Minneapolis Minnesota Revenue Bonds, weekly demand (E)(u) 500 3.830 05/01/26 500 St. Paul Housing & Redevelopment Authority Revenue Bonds, weekly demand (E)(u) 600 3.780 05/01/22 600 St. Paul Housing & Redevelopment Authority Revenue Bonds, weekly demand (E)(u) 1,155 3.780 08/01/25 1,155 ------------ 2,655 ------------
Tax Free Money Market Fund 9 RUSSELL INVESTMENT COMPANY TAX FREE MONEY MARKET FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Missouri - 0.7% Missouri State Health & Educational Facilities Authority Revenue Bonds, weekly demand (E)(u) 100 3.780 08/15/28 100 Missouri State Health & Educational Facilities Authority Revenue Bonds, weekly demand (E)(u) 100 3.780 08/01/31 100 Missouri State Health & Educational Facilities Authority Revenue Bonds, weekly demand (E)(u) 250 3.780 10/01/32 250 ------------ 450 ------------ Montana - 0.2% Helena Montana Revenue Bonds, weekly demand (E)(u) 100 3.780 10/01/32 100 ------------ Nevada - 1.6% Truckee Meadows Water Authority Revenue Bonds, weekly demand (E)(u) 1,000 3.750 07/01/30 1,000 ------------ New Jersey - 2.1% New Jersey Economic Development Authority Revenue Bonds, weekly demand (E)(u) 720 3.720 08/01/14 720 Garwood Board of Education Notes 550 4.500 03/14/07 551 ------------ 1,271 ------------ New York - 0.3% Nassau County Industrial Development Agency Revenue Bonds, weekly demand (E)(u) 150 3.630 12/01/36 150 ------------ North Carolina - 3.7% North Carolina Capital Facilities Finance Agency Revenue Bonds, weekly demand (E)(u) 2,250 3.650 12/01/28 2,250 ------------ Ohio - 15.1% American Municipal Power-Ohio, Inc. 315 4.000 07/12/07 315 American Municipal Power-Ohio, Inc. 950 3.750 10/04/07 950 American Municipal Power-Ohio, Inc. Notes 550 3.900 05/15/07 550 American Municipal Power-Ohio, Inc. Revenue Notes 385 3.600 03/30/07 385 City of Fairborn Ohio General Obligation Limited Notes 835 4.250 11/01/07 839 County of Clermont Ohio Revenue Bonds, semiannual demand (E)(u) 1,180 3.900 05/01/12 1,180 County of Greene Ohio General Obligation Limited Notes 475 4.500 08/14/07 477 Indian Lake Local School District General Obligation Unlimited Notes 875 4.700 05/24/07 878 Kirtland Ohio General Obligation Unlimited Notes 510 4.150 07/25/07 511 New Albany Community Authority Revenue Bonds, weekly demand (E)(u) 100 3.640 02/01/25 100 Stark County Ohio Revenue Bonds, weekly demand (E)(u) 1,495 3.800 09/15/16 1,495 Wapakonetka Ohio General Obligation Bonds 725 4.000 11/14/07 726 Warrensville Heights Ohio Notes 820 3.950 09/20/07 821 ------------ 9,227 ------------
10 Tax Free Money Market Fund RUSSELL INVESTMENT COMPANY TAX FREE MONEY MARKET FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Pennsylvania - 9.5% City of Philadelphia Pennsylvania Revenue Bonds, weekly demand (E)(u) 100 3.500 06/15/23 100 Langhorne Manor Boro Higher Education Authority Revenue Bonds, weekly demand (E)(u) 1,800 3.730 10/01/32 1,800 Lawrence County Industrial Development Authority Revenue Bonds, weekly demand (E)(u) 2,115 3.640 07/01/33 2,115 Sayre Health Care Facilities Authority Revenue Bonds, weekly demand (E)(u) 1,800 3.510 12/01/15 1,800 ------------ 5,815 ------------ Rhode Island - 1.7% Rhode Island Economic Development Corp. Revenue Bonds, weekly demand (E)(u) 1,065 3.650 07/01/23 1,065 ------------ South Carolina - 0.3% Greenville County School District Revenue Bonds, weekly demand (E) 200 3.650 12/01/28 200 ------------ South Dakota - 1.0% South Dakota Health & Educational Facilities Authority Revenue Bonds, weekly demand (E)(u) 600 3.730 09/01/27 600 ------------ Tennessee - 6.8% City of Memphis Tennessee General Obligation Unlimited, weekly demand (E)(u) 320 3.670 11/01/14 320 Knox County Industrial Development Board Revenue Bonds, weekly demand (E)(u) 1,500 3.800 12/01/14 1,500 Tennessee Energy Acquisition Corp. Revenue Bonds, weekly demand (E) 1,200 3.670 09/01/26 1,200 Wilson County Industrial Development Board, weekly demand (E) 1,100 3.620 07/01/26 1,100 ------------ 4,120 ------------ Texas - 8.2% Dickinson Independent School District General Obligation Unlimited, weekly demand (E) 2,080 3.660 02/15/13 2,080 Frenship Independent School District General Obligation Unlimited, weekly demand (E) 2,700 3.670 02/15/26 2,700 Keller Independent School District General Obligation Unlimited, weekly demand (E) 200 3.750 08/15/30 200 ------------ 4,980 ------------ Vermont - 1.4% Vermont Educational & Health Buildings Financing Agency Revenue Bonds, weekly demand (E)(u) 390 3.650 06/01/27 390 Vermont Educational & Health Buildings Financing Agency Revenue Bonds, weekly demand (E)(u) 450 3.730 10/01/34 450 ------------ 840 ------------ Virginia - 0.8% Virginia Public Building Authority Revenue Bonds, weekly demand (E)(u) 500 3.650 08/01/19 500 ------------
Tax Free Money Market Fund 11 RUSSELL INVESTMENT COMPANY TAX FREE MONEY MARKET FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Washington - 4.4% Clark County Public Utility District No. 1 Revenue Bonds, weekly demand (E)(u) 1,500 3.750 01/01/25 1,500 Washington State Housing Finance Commission Revenue Bonds, weekly demand (E)(u) 1,100 3.660 08/01/24 1,100 Washington State Housing Finance Commission Revenue Bonds, weekly demand (E)(u) 100 3.730 06/01/32 100 ------------ 2,700 ------------ West Virginia - 1.6% Marshall County West Virginia Revenue Bonds, weekly demand (E) 1,000 3.580 03/01/26 1,000 ------------ Wisconsin - 1.0% Milwaukee Redevelopment Authority Revenue Bonds, weekly demand (E)(u) 500 3.830 07/01/21 500 Wisconsin Health & Educational Facilities Authority Revenue Bonds, weekly demand (E)(u) 100 3.610 11/01/25 100 ------------ 600 ------------ TOTAL INVESTMENTS - 99.6% (identified cost $60,760) (+) 60,760 OTHER ASSETS AND LIABILITIES, NET - 0.4% 265 ------------ NET ASSETS - 100.0% 61,025 ============
See accompanying notes which are an integral part of the schedules of investments. 12 Tax Free Money Market Fund RUSSELL INVESTMENT COMPANY TAX FREE MONEY MARKET FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED)
% - ---------------------------------------------------------------------------- QUALITY RATINGS AS A % OF VALUE P-1/A-1; MIG1/SP-1/F-1 or equivalent 100 === ECONOMIC SECTOR EMPHASIS AS A % OF VALUE Non-Profit 19 Education (colleges and universities) 14 School District 13 Industrial Revenue Bond 9 Nursing Home 9 Annual Appropriation 7 Bond Anticipation Note 7 Corporate 4 Hospital 4 Multi-Family Housing Bond 3 Water and Sewer 3 Cashflow Note 2 General Obligation 2 Miscellaneous Revenue 2 Airport Revenue 1 Escrow to Maturity 1 --- 100 ===
See accompanying notes which are an integral part of the schedules of investments. Tax Free Money Market Fund 13 RUSSELL INVESTMENT COMPANY MONEY MARKET FUNDS NOTES TO SCHEDULES OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- FOOTNOTES: (E) Adjustable or floating rate security. Rate shown reflects rate in effect at period end. (u) Bond is insured by a guarantor. (B) Illiquid security. (ae) Pre-refunded: These bonds are collateralized by US 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. The rate noted is for descriptive purposes; effective yield may vary. (+) The identified cost for Federal income tax purpose is the same as shown above. (n) Taxable security. # All securities with a maturity date greater than thirteen months have a demand feature or an optional or mandatory put, or are pre-refunded, resulting in an effective maturity of thirteen months or less. Additionally, all daily and weekly demand securities are backed by direct payment of letters of credit. (A) Illiquid and restricted security. ABBREVIATIONS: LIBOR - London Interbank Offered Rate A-1 - A short-term obligation rated A-1 is rated in the highest category by Standard & Poor's for commercial paper obligations. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus (+) sign. This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong. F-1 - Highest credit quality. Indicates the strongest capacity for timely payment of financial commitments; (may have an added "+" to denote any exceptionally strong credit feature.) MIG1 - This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the markets for refinancing. P-1 - The highest tax-exempt rating given by Moody's Investor Services to commercial paper with a "superior capacity for repayment." SP-1 - The highest short-term municipal note credit rating given by Standard & Poor's Corporation to notes with a "very strong or strong capacity to pay principal and interest." 14 Notes to Schedules of Investments RUSSELL INVESTMENT COMPANY MONEY MARKET FUNDS NOTES TO QUARTERLY REPORT -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- 1. ORGANIZATION Russell Investment Company (the "Investment Company" or "RIC") is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on three of these Funds. The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under an amended and restated master trust agreement dated August 19, 2002. The Investment Company's master trust agreement permits the Board of Trustees (the "Board") to issue an unlimited number of shares of beneficial interest at a $.01 par value per share. On July 1, 2006, Frank Russell Investment Company changed its name to Russell Investment Company and Frank Russell Investment Management Company changed its name to Russell Investment Management Company ("RIMCo"). 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 generally accepted accounting principles ("GAAP") for investment companies. The presentation of these schedules of investments in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Quarterly Report. Actual results could differ from those estimates. Security Valuation The Funds' portfolio investments are valued using the amortized cost method (other than repurchase agreements which are valued at specific identified cost). Under this method, a portfolio instrument is initially valued at cost and thereafter a constant accretion/amortization to maturity of any discount or premium is assumed. While amortized cost provides certainty in valuation, it may result in periods when the value of an instrument is higher or lower than the price a Fund would receive if it sold the instrument. Investments in other mutual funds are valued at their net asset value per share, calculated at 4 p.m. Eastern time or as of the close of the New York Stock Exchange, whichever is earlier. Investment Transactions Securities transactions are recorded on a trade date basis, which in most instances is the same as the settlement date. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost. Investment Income Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Repurchase Agreements The Funds may enter into repurchase agreements. The US Government Money Market Fund currently invests primarily in repurchase agreements. A repurchase agreement is an agreement under which the Fund acquires a fixed income security (generally issued by the US government or an agency thereof, a banker's acceptance or a certificate of deposit) 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 the next business day). The resale price reflects an agreed upon interest rate effective for the period the security is held by the Fund and is unrelated to the interest rate on the security. The securities acquired by the Fund constitute collateral for the repurchase obligation. In these transactions, the securities acquired by the 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 a custodian bank until repurchased. In addition, RIMCo will monitor the Fund's repurchase agreement transactions generally and will evaluate the creditworthiness of any bank, broker or dealer party to a repurchase agreement with the Fund. Subject to the overall limitations described in "Restricted Securities", a Fund will not invest more than 10% of its net assets (taken at current market value) in repurchase agreements maturing in more than seven days. The use of repurchase agreements involves certain risks. One risk is the seller's ability to pay the agreed-upon repurchase price on the repurchase date. If the seller defaults, the Fund may incur costs in disposing of the collateral, which would reduce the amount realized thereon. If the seller seeks relief under bankruptcy laws, the disposition of the collateral may be delayed or Notes to Quarterly Report 15 RUSSELL INVESTMENT COMPANY MONEY MARKET FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JULY 31, 2006 (UNAUDITED) - -------------------------------------------------------------------------------- limited. For example, if the other party to the agreement becomes insolvent and subject to liquidation or reorganization under bankruptcy or other laws, a court may determine that the underlying securities are collateral for a loan by the Fund not within its control and therefore the realization by the Fund on such collateral may be automatically stayed. Finally, it is possible that the Fund may not be able to substantiate its interest in the underlying securities and may be deemed an unsecured creditor of the other party to the agreement. 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. 3. RELATED PARTIES The Investment Company Funds are permitted to invest their cash reserves (i.e., cash awaiting investment or cash held to meet redemption requests or to pay expenses) in the Investment Company's Money Market Fund, US Government Money Market Fund, and Tax Free Money Market Fund. As of January 31, 2007, $2,728,247,108, $1,914,000, and $6,642,848, respectively, represents investment by other Investment Company Funds not presented herein and investment by the Russell Investment Funds. The Russell Investment Funds employ the same investment adviser as RIC. In addition, a portion of the collateral received from the Investment Company's securities lending program in the amount of $1,000,000,000 is invested in the Money Market Fund. 4. RESTRICTED SECURITIES Restricted securities are subject to contractual limitations on resale, are often issued in private placement transactions, and are not registered under the Securities Act of 1933 (the "Act"). The most common types of restricted securities are those sold under Rule 144A of the Act and commercial paper sold under Section 4(2) of the Act. A Fund may invest a portion of its net assets not to exceed 10% in securities that are illiquid. Illiquid securities are securities that may not be readily marketable, and that cannot be sold within seven days in the ordinary course of business at the approximate amount at which the Fund has valued the securities. Restricted securities are generally considered to be illiquid. The following table lists restricted securities held by a Fund that are illiquid. The following table does not include (1) securities deemed liquid by RIMCo or a money manager pursuant to Board approved policies and procedures or (2) illiquid securities that are not restricted securities as designated on the Fund's Schedule of Investments. 6. RESTRICTED SECURITIES
PRINCIPAL COST MARKET VALUE FUND - % OF NET ASSETS ACQUISITION AMOUNT ($) COST PER UNIT (000) (000) SECURITIES DATE OR SHARES $ $ $ ----------------------------------------------------------------------------------------------------------------------------- Money Market Fund - 4.4% BNP Paribas 04/21/06 99,000,000 100.00 99,000 99,000 Goldman Sachs Group, Inc. 01/16/07 15,000,000 100.00 15,000 15,000 Royal Bank of Scotland Group PLC 12/07/06 13,700,000 100.00 13,704 13,704 Westpac Banking Corp. 10/30/06 100,000,000 100.00 100,030 100,030 -------------- 227,734 ==============
Illiquid securities may be priced by the Funds using fair value procedures approved by the Board of Trustees. 16 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY MONEY MARKET FUNDS SHAREHOLDER REQUESTS FOR ADDITIONAL INFORMATION -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- As a courtesy to Fund shareholders, 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 Fund at (800) 787-7354, (ii) at www.russell.com, (iii) on the Securities and Exchange Commission's website at www.sec.gov, and (iv) at the Securities and Exchange Commission's public reference room. The Board has delegated to RIMCo, 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. RIMCo has established a proxy voting committee ("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 a Fund. A description of the P&P, Guidelines and Portfolio Holdings Disclosure Policy are contained in the Funds' Statement of Additional Information ("SAI"). The SAI is available (i) free of charge, upon request, by calling the Fund at (800) 787-7354, (ii) at www.russell.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 Fund's prospectus 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 call us at (800) 787-7354 or contact your financial institution and we will begin sending you individual copies thirty days after receiving your request. If you wish to receive the Fund's prospectus and each annual and semi-annual report electronically, please call us at (800) 787-7354 or contact your financial institution. Shareholder Requests for Additional Information 17 [RUSSELL LOGO] Russell Investment Company 909 A Street Tacoma, Washington 98402 253-627-7001 800-787-7354 Fax: 253-591-3495 www.russell.com 36-08-070 (1 01/07) RUSSELL FUNDS 2007 QUARTERLY REPORT CLASS C, E, AND S SHARES: DIVERSIFIED EQUITY FUND SPECIAL GROWTH FUND QUANTITATIVE EQUITY FUND INTERNATIONAL SECURITIES FUND EMERGING MARKETS FUND REAL ESTATE SECURITIES FUND SHORT DURATION BOND FUND DIVERSIFIED BOND FUND MULTISTRATEGY BOND FUND TAX EXEMPT BOND FUND TAX-MANAGED LARGE CAP FUND TAX-MANAGED MID & SMALL CAP FUND CLASS C, E, I, AND S SHARES: SELECT GROWTH FUND SELECT VALUE FUND JANUARY 31, 2007 (RUSSELL LOGO) Russell Investment Company Russell Investment Company is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on fourteen of these Funds. Russell Investment Management Company* Responsible for overall management and administration of the Funds. * On July 1, 2006, Frank Russell Investment Management Company changed its name to Russell Investment Management Company. [Blank Page] Russell Investment Company Russell Funds Quarterly Report January 31, 2007 (Unaudited) Table of Contents
Page Diversified Equity Fund.............................................. 3 Special Growth Fund.................................................. 8 Quantitative Equity Fund............................................. 19 International Securities Fund........................................ 28 Emerging Markets Fund................................................ 43 Real Estate Securities Fund.......................................... 53 Short Duration Bond Fund............................................. 55 Diversified Bond Fund................................................ 70 Multistrategy Bond Fund.............................................. 98 Tax Exempt Bond Fund................................................. 138 Tax-Managed Large Cap Fund........................................... 150 Tax-Managed Mid & Small Cap Fund..................................... 154 Select Growth Fund................................................... 161 Select Value Fund.................................................... 166 Notes to Schedules of Investments.................................... 171 Notes to Quarterly Report............................................ 172 Shareholder Requests for Additional Information...................... 182
Russell Investment Company - Russell Funds. Copyright (c) Russell Investment Group 2007. All rights reserved. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company. FUND OBJECTIVES, RISKS, CHARGES AND EXPENSES SHOULD BE CAREFULLY CONSIDERED BEFORE INVESTING. 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 FUND DISTRIBUTORS, INC. MEMBER NASD, PART OF RUSSELL INVESTMENT GROUP. Effective July 1, 2006 Frank Russell Investment Company changed its name to Russell Investment Company ("RIC"). RIC Funds are distributed by Russell Fund Distributors, Inc., and advised by Russell Investment Management Company ("RIMCo"). Effective July 1, 2006 RIMCo changed its name from Frank Russell Investment Management Company. Russell Investment Group and Standard & Poor's Corporation are the owners of the trademarks, service marks, and copyrights related to their respective indexes. Index performance is not indicative of the performance of any specific investment. Indexes are not managed and may not be invested in directly. RUSSELL INVESTMENT COMPANY DIVERSIFIED EQUITY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 90.1% Auto and Transportation - 3.5% American Axle & Manufacturing Holdings, Inc. (N) 25,700 534 Autoliv, Inc. (N) 22,300 1,346 BorgWarner, Inc. 16,100 1,103 Burlington Northern Santa Fe Corp. 289,184 23,239 CH Robinson Worldwide, Inc. 149,440 7,928 CSX Corp. 863,950 31,785 FedEx Corp. 157,073 17,341 General Motors Corp. (N) 33,200 1,090 Magna International, Inc. Class A 12,050 941 Navistar International Corp. (AE)(N) 347,550 15,376 Norfolk Southern Corp. 98,400 4,885 Southwest Airlines Co. 60,550 914 Toyota Motor Corp. - ADR 87,411 11,519 Union Pacific Corp. 130,343 13,165 United Parcel Service, Inc. Class B 49,500 3,578 US Airways Group, Inc. (AE) 169,915 9,512 Visteon Corp. (AE)(N) 528,400 4,227 ------------ 148,483 ------------ Consumer Discretionary - 13.5% Abercrombie & Fitch Co. Class A 39,200 3,118 Accenture, Ltd. Class A 168,280 6,353 Advance Auto Parts, Inc. 63,100 2,395 Avis Budget Group, Inc. (AE) 1,050 27 Big Lots, Inc. (AE)(N) 39,800 1,032 Black & Decker Corp. 11,100 969 Carnival Corp. 57,650 2,972 CBS Corp. Class B 94,950 2,960 Coach, Inc. (AE) 153,640 7,046 Costco Wholesale Corp. 193,100 10,848 Dollar General Corp. (N) 164,300 2,783 eBay, Inc. (AE) 149,200 4,833 Electronic Arts, Inc. (AE) 430,400 21,520 Family Dollar Stores, Inc. 45,400 1,471 Federated Department Stores, Inc. 488,137 20,253 Focus Media Holding, Ltd. - ADR (AE) 57,100 4,720 Four Seasons Hotels, Inc. 55,788 4,645 GameStop Corp. Class A (AE)(N) 66,900 3,574 Gannett Co., Inc. 38,700 2,250 Gap, Inc. (The) 235,400 4,513 Google, Inc. Class A (AE) 116,800 58,552 Harman International Industries, Inc. (N) 28,500 2,695 Hewitt Associates, Inc. Class A (AE) 251,000 6,762 Idearc, Inc. (AE)(N) 7,410 240 Intercontinental Hotels Group PLC - ADR (N) 342,000 8,598 International Game Technology 156,560 6,804 Interpublic Group of Cos., Inc. (AE)(N) 67,000 882 JC Penney Co., Inc. 81,300 6,605
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Jones Apparel Group, Inc. 35,100 1,199 Kimberly-Clark Corp. 17,100 1,187 Kohl's Corp. (AE)(N) 70,400 4,992 Las Vegas Sands Corp. (AE) 339,427 35,324 Liberty Global, Inc. Series C (AE) 57,890 1,634 Liberty Media Holding Corp. Series A (AE) 67,840 6,940 Limited Brands, Inc. 15,200 425 Liz Claiborne, Inc. (N) 144,000 6,394 Lowe's Cos., Inc. 363,308 12,247 Mattel, Inc. 79,600 1,939 McDonald's Corp. 947,300 42,013 McGraw-Hill Cos., Inc. (The) 100,300 6,728 MGM Mirage (AE)(N) 212,693 14,882 Monster Worldwide, Inc. (AE) 93,000 4,595 News Corp. Class A 240,470 5,591 Nike, Inc. Class B 137,700 13,606 Nordstrom, Inc. 38,951 2,170 Nutri System, Inc. (AE)(N) 46,720 2,058 Office Depot, Inc. (AE) 30,900 1,155 Pinnacle Entertainment, Inc. (AE) 51,504 1,778 Polo Ralph Lauren Corp. Class A 46,600 3,823 Quiksilver, Inc. (AE)(N) 396,300 5,631 RadioShack Corp. (N) 62,000 1,370 Saks, Inc. (N) 23,600 443 Sears Holdings Corp. (AE) 19,800 3,498 Staples, Inc. 515,800 13,266 Starbucks Corp. (AE) 940,559 32,863 Starwood Hotels & Resorts Worldwide, Inc. (o) 203,276 12,721 Station Casinos, Inc. 123,988 10,316 Target Corp. 392,925 24,110 Tech Data Corp. (AE) 23,500 873 Time Warner, Inc. 754,850 16,508 Tribune Co. (N) 50,600 1,545 Under Armour, Inc. Class A (AE)(N) 55,500 2,819 Urban Outfitters, Inc. (AE)(N) 243,900 5,951 VF Corp. 22,100 1,677 Viacom, Inc. Class A (AE) 433,320 17,623 Wal-Mart Stores, Inc. 439,300 20,950 Walt Disney Co. (The) 41,540 1,461 Wendy's International, Inc. 36,300 1,233 Wynn Resorts, Ltd. (N) 54,973 6,143 XM Satellite Radio Holdings, Inc. Class A (AE)(N) 582,550 8,278 Yum! Brands, Inc. 111,226 6,675 ------------ 566,054 ------------
Diversified Equity Fund 3 RUSSELL INVESTMENT COMPANY DIVERSIFIED EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Consumer Staples - 6.6% Altria Group, Inc. 782,108 68,348 Coca-Cola Co. (The) 244,747 11,718 Coca-Cola Enterprises, Inc. 76,900 1,578 Colgate-Palmolive Co. 163,700 11,181 Constellation Brands, Inc. Class A (AE)(N) 272,700 6,747 CVS Corp. (N) 213,800 7,194 Diageo PLC - ADR 130,950 10,310 Heineken NV - ADR 234,829 5,929 HJ Heinz Co. 36,400 1,715 Kellogg Co. 26,700 1,316 Kroger Co. (The) 83,600 2,140 Molson Coors Brewing Co. Class B 83,000 6,706 PepsiCo, Inc. 792,504 51,703 Procter & Gamble Co. 1,010,013 65,520 Safeway, Inc. 72,900 2,627 Sara Lee Corp. 85,300 1,463 Smithfield Foods, Inc. (AE) 19,350 508 Tyson Foods, Inc. Class A (N) 147,300 2,615 UST, Inc. (N) 24,700 1,419 Walgreen Co. (N) 356,500 16,149 ------------ 276,886 ------------ Financial Services - 19.7% ACE, Ltd. 13,300 768 Allstate Corp. (The) 277,460 16,692 American Express Co. 340,100 19,801 American International Group, Inc. 896,272 61,350 Annaly Capital Management, Inc. (o) 696,550 9,598 AON Corp. 49,700 1,782 Astoria Financial Corp. 28,350 839 Bank of America Corp. 1,335,228 70,206 Bank of New York Co., Inc. (The) (N) 183,600 7,346 BB&T Corp. 25,500 1,078 Capital One Financial Corp. 145,944 11,734 CB Richard Ellis Group, Inc. Class A (AE) 180,778 6,799 Charles Schwab Corp. (The) 406,710 7,695 Chicago Mercantile Exchange Holdings, Inc. Class A 13,150 7,407 Chubb Corp. 89,900 4,678 Citigroup, Inc. 1,228,856 67,747 Comerica, Inc. (N) 28,000 1,660 Countrywide Financial Corp. 742,000 32,262 Fannie Mae 670,400 37,898 Fidelity National Financial, Inc. Class A 87,391 2,075 First American Corp. (N) 180,500 7,650 Freddie Mac 188,350 12,230 Genworth Financial, Inc. Class A 797,580 27,836 Goldman Sachs Group, Inc. 321,623 68,236
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Hartford Financial Services Group, Inc. 145,380 13,798 Hudson City Bancorp, Inc. 112,600 1,550 IndyMac Bancorp, Inc. (N) 173,025 6,729 IntercontinentalExchange, Inc. (AE) 40,660 5,308 iShares Russell 1000 Value Index Fund 68,050 5,696 JPMorgan Chase & Co. 1,260,973 64,221 KeyCorp 56,300 2,149 Lehman Brothers Holdings, Inc. 236,444 19,445 Lincoln National Corp. 17,500 1,175 Loews Corp. 19,450 845 MBIA, Inc. (N) 24,800 1,781 Merrill Lynch & Co., Inc. (N) 336,300 31,464 Metlife, Inc. 387,810 24,091 MGIC Investment Corp. (N) 56,700 3,500 Morgan Stanley 121,500 10,059 National City Corp. 85,090 3,221 Old Republic International Corp. 62,800 1,400 PartnerRe, Ltd. (N) 8,300 564 Paychex, Inc. 430,000 17,204 PMI Group, Inc. (The) 48,800 2,334 PNC Financial Services Group, Inc. 93,540 6,900 RenaissanceRe Holdings, Ltd. 77,925 4,151 St. Paul Travelers Cos., Inc. (The) 303,570 15,437 SunTrust Banks, Inc. 128,560 10,683 UBS AG 451,710 28,462 UnumProvident Corp. 78,000 1,716 US Bancorp 12,756 454 Wachovia Corp. 382,500 21,611 Waddell & Reed Financial, Inc. Class A 33,000 847 Washington Mutual, Inc. (N) 140,380 6,260 Wells Fargo & Co. 656,924 23,597 Western Union Co. (The) 143,400 3,204 XL Capital, Ltd. Class A 8,300 573 ------------ 825,796 ------------ Health Care - 10.6% Abbott Laboratories 263,900 13,987 Allergan, Inc. 93,890 10,958 AmerisourceBergen Corp. Class A 36,100 1,891 Amgen, Inc. (AE) 190,365 13,396 Amylin Pharmaceuticals, Inc. (AE)(N) 121,701 4,720 Baxter International, Inc. 445,800 22,138 Biogen Idec, Inc. (AE) 81,600 3,945 BioMarin Pharmaceuticals, Inc. (AE) 82,800 1,568 Boston Scientific Corp. (AE) 195,408 3,605 Bristol-Myers Squibb Co. 272,500 7,845 Caremark Rx, Inc. 97,100 5,948
4 Diversified Equity Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Celgene Corp. (AE) 161,471 8,668 Community Health Systems, Inc. (AE) 107,400 3,840 Covance, Inc. (AE) 99,320 6,123 Eli Lilly & Co. 198,000 10,716 Genentech, Inc. (AE) 549,810 48,037 Genzyme Corp. (AE) 86,180 5,665 Gilead Sciences, Inc. (AE) 238,390 15,333 Hospira, Inc. (AE) 81,700 3,005 Human Genome Sciences, Inc. (AE)(N) 437,000 5,148 Humana, Inc. (AE) 30,977 1,719 Intuitive Surgical, Inc. (AE)(N) 43,590 4,290 Invitrogen Corp. (AE)(N) 100,900 6,178 Johnson & Johnson 469,730 31,378 McKesson Corp. 105,300 5,870 Medco Health Solutions, Inc. (AE) 124,379 7,364 Medtronic, Inc. 63,228 3,380 Merck & Co., Inc. 518,329 23,195 New River Pharmaceuticals, Inc. (AE)(N) 46,909 2,622 Novartis AG - ADR 456,840 26,355 Omnicare, Inc. (N) 289,350 11,629 PDL BioPharma, Inc. (AE)(N) 284,700 5,839 Pfizer, Inc. 393,900 10,336 Schering-Plough Corp. 76,100 1,903 Sepracor, Inc. (AE)(N) 28,100 1,603 St. Jude Medical, Inc. (AE) 95,240 4,072 Stryker Corp. (N) 218,600 13,540 Tenet Healthcare Corp. (AE)(N) 153,900 1,087 Thermo Fisher Scientific, Inc. (AE) 352,430 16,864 UnitedHealth Group, Inc. 697,133 36,432 Vertex Pharmaceuticals, Inc. (AE) 229,600 8,116 WellPoint, Inc. (AE) 59,647 4,675 Wyeth 367,580 18,162 ------------ 443,145 ------------ Integrated Oils - 4.2% BP PLC - ADR 12,400 788 Chevron Corp. 368,987 26,892 ConocoPhillips 238,152 15,816 Exxon Mobil Corp. (N) 679,140 50,324 Hess Corp. (N) 796,150 42,984 Marathon Oil Corp. 94,500 8,537 Occidental Petroleum Corp. 130,200 6,036 Total SA - ADR 348,250 23,698 ------------ 175,075 ------------ Materials and Processing - 3.7% Alcoa, Inc. 69,800 2,254 Arcelor Mittal Class A 20,200 937 Archer-Daniels-Midland Co. 141,120 4,516 Ashland, Inc. 19,400 1,349 Avery Dennison Corp. 7,800 533 Bunge, Ltd. (N) 66,050 5,083
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Cameco Corp. 482,100 18,382 Carpenter Technology Corp. 80,900 9,473 Celanese Corp. Class A 231,300 6,072 Cytec Industries, Inc. (N) 41,200 2,399 Dow Chemical Co. (The) 71,000 2,949 EI Du Pont de Nemours & Co. 82,185 4,073 Hercules, Inc. (AE) 53,600 1,051 Imperial Chemical Industries PLC - ADR (N) 186,769 6,793 International Paper Co. 28,900 974 Louisiana-Pacific Corp. 17,300 396 Lubrizol Corp. 22,100 1,139 Masco Corp. (N) 289,030 9,246 Monsanto Co. 338,456 18,645 PPG Industries, Inc. (N) 103,600 6,868 Praxair, Inc. 220,456 13,902 Rio Tinto PLC - ADR (N) 56,200 12,151 Smurfit-Stone Container Corp. (AE) 87,200 942 Sonoco Products Co. 9,000 346 St. Joe Co. (The) (N) 72,641 4,206 Syngenta AG - ADR 193,050 7,156 Temple-Inland, Inc. (N) 237,000 11,836 United States Steel Corp. 15,100 1,261 ------------ 154,932 ------------ Miscellaneous - 3.3% 3M Co. 135,300 10,053 Eaton Corp. 27,800 2,178 General Electric Co. 2,290,622 82,577 Honeywell International, Inc. 192,300 8,786 SPX Corp. (N) 23,100 1,622 Textron, Inc. 241,259 22,478 Tyco International, Ltd. 310,450 9,897 ------------ 137,591 ------------ Other Energy - 3.3% Apache Corp. 61,600 4,495 Baker Hughes, Inc. 220,000 15,187 Cameron International Corp. (AE) 127,128 6,674 Consol Energy, Inc. 145,200 4,999 Devon Energy Corp. 126,690 8,880 Halliburton Co. 476,600 14,079 Massey Energy Co. (N) 493,600 11,693 NRG Energy, Inc. (AE)(N) 34,155 2,047 Range Resources Corp. 110,143 3,380 Reliant Energy, Inc. (AE)(N) 1,567,600 23,326
Diversified Equity Fund 5 RUSSELL INVESTMENT COMPANY DIVERSIFIED EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Schlumberger, Ltd. 427,906 27,168 XTO Energy, Inc. 311,500 15,721 ------------ 137,649 ------------ Producer Durables - 5.9% AGCO Corp. (AE)(N) 311,000 10,565 Agilent Technologies, Inc. (AE) 210,600 6,739 Alcatel-Lucent - ADR (N) 467,100 6,072 American Power Conversion Corp. 214,100 6,581 Boeing Co. 275,300 24,656 Bombardier, Inc. (AE) 1,252,200 4,735 Caterpillar, Inc. 126,700 8,118 Centex Corp. (N) 180,500 9,691 Crown Castle International Corp. (AE)(N) 197,610 6,948 Cummins, Inc. 9,000 1,211 Deere & Co. 182,740 18,325 Emerson Electric Co. 210,800 9,480 Goodrich Corp. 131,150 6,429 Ingersoll-Rand Co., Ltd. Class A 16,000 686 KB Home (N) 97,921 5,309 Kla-Tencor Corp. 201,600 9,925 Lennar Corp. Class A (N) 83,690 4,551 Lexmark International, Inc. Class A (AE)(N) 17,400 1,097 Lockheed Martin Corp. 351,526 34,165 Nokia OYJ - ADR 179,000 3,956 Northrop Grumman Corp. 236,930 16,808 Pulte Homes, Inc. 217,000 7,452 Roper Industries, Inc. (N) 98,200 5,098 United Technologies Corp. 571,413 38,867 ------------ 247,464 ------------ Technology - 11.3% Adobe Systems, Inc. (AE) 164,300 6,386 Akamai Technologies, Inc. (AE)(N) 104,430 5,867 Apple, Inc. (AE) 468,910 40,200 Arrow Electronics, Inc. (AE) 44,500 1,569 AU Optronics Corp. - ADR (N) 602,249 8,088 Avnet, Inc. (AE) 52,200 1,621 BearingPoint, Inc. (AE)(N) 605,350 4,849 Broadcom Corp. Class A (AE) 361,740 11,547 Celestica, Inc. (AE)(N) 374,400 2,231 Cisco Systems, Inc. (AE) 1,518,812 40,385 Corning, Inc. (AE) 477,700 9,955 Dell, Inc. (AE) 684,450 16,598 Electronic Data Systems Corp. 36,100 950 EMC Corp. (AE) 332,400 4,650 F5 Networks, Inc. (AE) 53,140 3,796 Flextronics International, Ltd. (AE)(N) 73,700 857 General Dynamics Corp. 163,576 12,784 Hewlett-Packard Co. 1,323,170 57,267 Intel Corp. 1,476,257 30,942
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- International Business Machines Corp. 113,000 11,204 International Rectifier Corp. (AE)(N) 120,200 5,016 JDS Uniphase Corp. (AE)(N) 642,013 11,415 L-3 Communications Holdings, Inc. 94,700 7,798 Marvell Technology Group, Ltd. (AE) 81,819 1,497 Maxim Integrated Products, Inc. 137,100 4,223 Microsoft Corp. 1,016,772 31,378 Motorola, Inc. 606,450 12,038 National Semiconductor Corp. 253,700 5,868 Nvidia Corp. (AE) 177,200 5,431 Oracle Corp. (AE) 428,740 7,357 PerkinElmer, Inc. 293,800 7,013 Qualcomm, Inc. 1,011,400 38,089 Raytheon Co. 22,600 1,173 Research In Motion, Ltd. (AE) 148,350 18,956 Salesforce.com, Inc. (AE)(N) 156,800 6,873 SanDisk Corp. (AE) 250,100 10,054 Sanmina-SCI Corp. (AE) 302,700 1,059 Seagate Technology, Inc. (AE) 9,200 -- Solectron Corp. (AE) 207,700 675 Sun Microsystems, Inc. (AE) 1,167,520 7,752 Sunpower Corp. Class A (AE)(N) 68,000 3,012 Texas Instruments, Inc. 499,660 15,584 ------------ 474,007 ------------ Utilities - 4.5% Ameren Corp. 13,600 722 America Movil SA de CV Series L 139,779 6,201 American Electric Power Co., Inc. 44,100 1,920 AT&T, Inc. 1,042,783 39,240 Comcast Corp. Class A (AE) 792,607 35,129 Constellation Energy Group, Inc. 5,900 428 Dominion Resources, Inc. (N) 328,170 27,225 Embarq Corp. 122,321 6,790 Entergy Corp. 16,200 1,504 FPL Group, Inc. (N) 111,940 6,341 Level 3 Communications, Inc. (AE)(N) 358,500 2,226 NII Holdings, Inc. (AE)(N) 105,350 7,775 Progress Energy, Inc. 13,700 651 Progress Energy, Inc. - CVO 5,500 2 Sprint Nextel Corp. 1,270,080 22,646 Time Warner Telecom, Inc. Class A (AE) 132,750 3,090
6 Diversified Equity Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- TXU Corp. 177,750 9,613 Verizon Communications, Inc. (N) 382,700 14,742 ------------ 186,245 ------------ TOTAL COMMON STOCKS (cost $3,117,667) 3,773,327 ------------ PREFERRED STOCKS - 0.1% Producer Durables - 0.1% General Motors Corp. 82,550 1,969 ------------ TOTAL PREFERRED STOCKS (cost $1,401) 1,969 ------------ SHORT-TERM INVESTMENTS - 9.7% Russell Investment Company Money Market Fund 391,589,926 391,590 United States Treasury Bills (c)(z)(sec.) 4.899% due 03/15/07 1,000 994 4.968% due 03/15/07 14,000 13,921 5.009% due 03/15/07 100 100 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $406,605) 406,605 ------------ OTHER SECURITIES - 6.6% Russell Investment Company Money Market Fund (X) 68,431,903 68,432 State Street Securities Lending Quality Trust (X) 208,644,118 208,644 ------------ TOTAL OTHER SECURITIES (cost $277,076) 277,076 ------------ TOTAL INVESTMENTS - 106.5% (identified cost $3,802,749) 4,458,977 OTHER ASSETS AND LIABILITIES, NET - (6.5%) (270,849) ------------ NET ASSETS - 100.0% 4,188,128 ============
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------- Long Positions Russell 1000 Index expiration date 03/07 (43) 16,925 203 Russell 1000 Mini Index (CME) expiration date 03/07 (110) 8,656 113 S&P 500 E-Mini Index (CME) expiration date 03/07 (839) 60,534 721 S&P 500 Index (CME) expiration date 03/07 (685) 247,114 3,646 S&P Midcap 400 E-Mini Index (CME) expiration date 03/07 (770) 64,441 984 ------------ Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 5,667 ============
See accompanying notes which are an integral part of the schedules of investments. Diversified Equity Fund 7 RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 93.3% Auto and Transportation - 3.5% AAR Corp. (AE)(N) 79,000 2,353 Aftermarket Technology Corp. (AE) 15,800 341 American Commercial Lines, Inc. (AE)(N) 20,400 1,437 AMR Corp. (AE) 32,800 1,215 Arctic Cat, Inc. (N) 13,000 240 Arkansas Best Corp. (N) 34,000 1,299 ArvinMeritor, Inc. (N) 162,714 3,132 Autoliv, Inc. (N) 12,800 772 Bristow Group, Inc. (AE)(N) 57,600 2,151 Commercial Vehicle Group, Inc. (AE) 14,400 291 Continental Airlines, Inc. Class A (AE) 9,249 384 Dana Corp. (N) 211,000 249 Danaos Corp. 16,400 396 DryShips, Inc. (N) 66,500 1,135 ExpressJet Holdings, Inc. Class A (AE) 135,948 1,062 Freightcar America, Inc. 3,715 216 Grupo Aeroportuario del Centro Norte Sab de CV - ADR (AE) 56,100 1,361 Grupo Aeroportuario del Sureste SAB de CV - ADR 30,600 1,331 Gulfmark Offshore, Inc. (AE) 20,900 755 Heartland Express, Inc. (N) 19,424 329 Horizon Lines, Inc. Class A 71,575 2,129 HUB Group, Inc. Class A (AE) 32,075 958 Kansas City Southern (AE)(N) 25,600 770 Laidlaw International, Inc. 63,800 1,896 Lear Corp. 48,700 1,649 Modine Manufacturing Co. 10,700 280 Navistar International Corp. (AE)(N) 48,900 2,163 OMI Corp. (N) 56,500 1,246 PAM Transportation Services (AE) 7,200 158 Republic Airways Holdings, Inc. (AE) 31,600 604 Saia, Inc. (AE)(N) 29,800 794 Skywest, Inc. 38,711 1,051 Standard Motor Products, Inc. 20,648 327 Teekay Shipping Corp. (N) 26,800 1,346 Tidewater, Inc. (N) 4,100 211 TRW Automotive Holdings Corp. (AE) 50,200 1,313 US Xpress Enterprises, Inc. Class A (AE)(N) 26,600 491 UTI Worldwide, Inc. 157,135 4,777 Visteon Corp. (AE) 50,900 407 Wabtec Corp. 8,548 274 YRC Worldwide, Inc. (AE)(N) 41,000 1,818 ------------ 45,111 ------------ Consumer Discretionary - 18.7% 24/7 Real Media, Inc. (AE)(N) 128,900 1,303 Abercrombie & Fitch Co. Class A 47,308 3,763 ABM Industries, Inc. 21,033 544
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Activision, Inc. (AE)(N) 379,871 6,469 Adesa, Inc. 27,100 786 Advance Auto Parts, Inc. 25,700 975 Advisory Board Co. (The) (AE) 58,179 3,276 AFC Enterprises (AE)(N) 22,000 369 Alloy, Inc. (AE) 9,942 118 American Eagle Outfitters, Inc. 37,000 1,198 American Greetings Corp. Class A 30,698 737 American Woodmark Corp. 26,052 1,171 AMN Healthcare Services, Inc. (AE) 121,500 3,144 aQuantive, Inc. (AE) 97,536 2,614 Asbury Automotive Group, Inc. 25,999 636 Autonation, Inc. (AE) 1,900 43 Baidu.com - ADR (AE) 41,833 5,227 Bare Escentuals, Inc. (AE) 56,821 2,073 Barnes & Noble, Inc. 30,300 1,180 Bebe Stores, Inc. 135,505 2,510 Big Lots, Inc. (AE) 137,153 3,556 Blockbuster, Inc. Class A (AE) 137,601 893 Bob Evans Farms, Inc. 25,696 873 Books-A-Million, Inc. Class A 8,884 170 Bowne & Co., Inc. 19,100 287 Bright Horizons Family Solutions, Inc. (AE)(N) 30,900 1,210 Brown Shoe Co., Inc. 32,795 1,782 Buckle, Inc. (The) 16,500 554 Carmax, Inc. (AE)(N) 73,700 4,233 CBRL Group, Inc. (N) 3,606 169 CEC Entertainment, Inc. (AE) 60,900 2,575 Central Parking Corp. (N) 15,691 313 Cenveo, Inc. (AE) 13,400 313 Charlotte Russe Holding, Inc. (AE) 1,908 58 Chemed Corp. 33,386 1,219 Children's Place Retail Stores, Inc. (The) (AE) 42,756 2,318 Chipotle Mexican Grill, Inc. Class A (AE)(N) 12,500 743 Churchill Downs, Inc. (N) 3,962 166 CMGI, Inc. (AE) 334,368 425 Coinstar, Inc. (AE) 24,650 745 Consolidated Graphics, Inc. (AE) 15,300 949 Convergys Corp. (AE) 97,800 2,547 Core-Mark Holding Co., Inc. (AE)(N) 4,300 135 Corinthian Colleges, Inc. (AE)(N) 67,100 876 Corporate Executive Board Co. 35,836 3,251 CRA International, Inc. (AE) 9,993 539 Crocs, Inc. (AE)(N) 107,300 5,401
8 Special Growth Fund RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- CSK Auto Corp. (AE) 29,300 486 CSS Industries, Inc. 1,900 69 DeVry, Inc. (N) 75,900 2,137 Dick's Sporting Goods, Inc. (AE)(N) 9,400 484 Dillard's, Inc. Class A 65,800 2,260 Dolby Laboratories, Inc. Class A (AE) 119,700 4,010 Dollar Tree Stores, Inc. (AE)(N) 86,000 2,706 DreamWorks Animation SKG, Inc. Class A (AE)(N) 45,600 1,285 Dress Barn, Inc. (AE) 29,170 655 DSW, Inc. Class A (AE) 21,866 877 Earthlink, Inc. (AE)(N) 135,300 989 Electronic Arts, Inc. (AE) 65,245 3,262 Elizabeth Arden, Inc. (AE) 26,200 495 Ethan Allen Interiors, Inc. (N) 42,400 1,597 Ezcorp, Inc. Class A (AE) 55,713 932 Family Dollar Stores, Inc. 34,700 1,124 Federated Department Stores, Inc. 42,200 1,751 Focus Media Holding, Ltd. - ADR (AE) 43,900 3,629 Foot Locker, Inc. 98,800 2,217 Forrester Research, Inc. (AE) 91,202 2,568 FTD Group, Inc. (AE) 44,700 825 GameStop Corp. Class A (AE) 49,270 2,633 Gmarket, Inc. - ADR (N) 79,400 1,699 Great Wolf Resorts, Inc. (AE) 32,200 455 Group 1 Automotive, Inc. 26,100 1,383 Guess?, Inc. (AE)(N) 64,100 4,622 Gymboree Corp. (AE) 25,973 1,124 Hasbro, Inc. (N) 73,800 2,096 Haverty Furniture Cos., Inc. 27,260 417 Helen of Troy, Ltd. (AE)(N) 105,230 2,537 Home Solutions of America, Inc. (AE)(N) 171,492 1,099 Iconix Brand Group, Inc. (AE)(N) 240,738 4,793 ICT Group, Inc. (AE) 11,699 334 IKON Office Solutions, Inc. 69,100 1,030 infoUSA, Inc. 97,986 1,177 Interstate Hotels & Resorts, Inc. (AE) 54,486 401 ITT Educational Services, Inc. (AE) 28,200 2,188 J Crew Group, Inc. (AE)(N) 64,700 2,351 Jack in the Box, Inc. (AE) 36,402 2,249 Jakks Pacific, Inc. (AE) 34,900 707 Jones Apparel Group, Inc. 30,400 1,038 JOS A Bank Clothiers, Inc. (AE)(N) 42,030 1,301 Journal Register Co. 59,700 417 K-Swiss, Inc. Class A 33,900 1,072 K2, Inc. (AE) 88,513 1,069 Kellwood Co. 33,412 1,096 Kenneth Cole Productions, Inc. Class A (N) 8,200 194 Knology, Inc. (AE) 9,164 122 Knot, Inc. (The) (AE)(N) 57,200 1,726 Korn/Ferry International (AE)(N) 150,626 3,597 Lakes Entertainment, Inc. (AE)(N) 13,500 116
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Leapfrog Enterprises, Inc. Class A (AE)(N) 63,800 684 Lee Enterprises, Inc. 69,200 2,300 Libbey, Inc. (N) 25,900 308 LIFE TIME FITNESS, Inc. (AE)(N) 101,700 5,512 Lightbridge, Inc. (AE) 31,432 504 Liz Claiborne, Inc. (N) 34,000 1,510 LKQ Corp. (AE) 53,419 1,144 Lodgenet Entertainment Corp. (AE) 25,539 694 Luby's, Inc. (AE) 4,700 51 Maidenform Brands, Inc. (AE) 17,159 344 Marcus Corp. (N) 19,600 469 McClatchy Co. Class A (N) 72,200 2,793 McCormick & Schmick's Seafood Restaurants, Inc. (AE) 6,800 171 Men's Wearhouse, Inc. (The) 63,400 2,722 Meredith Corp. 40,200 2,370 Morton's Restaurant Group, Inc. (AE) 6,300 118 Mothers Work, Inc. (AE) 5,347 179 Movado Group, Inc. 8,300 238 Movie Gallery, Inc. (AE) 27,941 107 MPS Group, Inc. (AE) 115,989 1,738 Navarre Corp. (AE)(N) 11,400 46 O'Charleys, Inc. (AE) 61,847 1,314 O'Reilly Automotive, Inc. (AE) 69,533 2,427 OfficeMax, Inc. 50,200 2,424 On Assignment, Inc. (AE) 82,600 1,066 Orient-Express Hotels, Ltd. Class A 80,095 3,817 Pacific Sunwear of California, Inc. (AE)(N) 82,500 1,617 Payless Shoesource, Inc. (AE) 35,628 1,210 Penn National Gaming, Inc. (AE) 56,178 2,462 Perry Ellis International, Inc. (AE) 54,850 1,650 Phillips-Van Heusen Corp. 96,933 5,346 Pier 1 Imports, Inc. (N) 116,700 790 Prestige Brands Holdings, Inc. (AE) 26,700 339 Priceline.com, Inc. (AE) 46,900 1,999 Quiksilver, Inc. (AE)(N) 84,700 1,204 RadioShack Corp. (N) 47,400 1,048 RC2 Corp. (AE) 5,959 235 Rent-A-Center, Inc. Class A (AE)(N) 72,900 2,148 Republic Services, Inc. Class A 63,220 2,734 Retail Ventures, Inc. (AE) 13,664 270 Rush Enterprises, Inc. Class A (AE) 8,500 156 Scholastic Corp. (AE)(N) 88,689 3,135 Service Corp. International 85,700 913 Shoe Carnival, Inc. (AE) 18,038 574 Sirva, Inc. (AE) 53,600 166
Special Growth Fund 9 RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Skechers USA, Inc. Class A (AE) 7,700 273 Sonic Automotive, Inc. Class A 26,100 818 Spanish Broadcasting System, Inc. Class A (AE)(N) 6,300 26 Stage Stores, Inc. 30,791 988 Standard Parking Corp. (AE) 5,818 222 Stanley Furniture Co., Inc. 7,393 158 Steak N Shake Co. (The) (AE) 3,500 62 Stewart Enterprises, Inc. Class A 26,500 188 Sturm Ruger & Co., Inc. (AE) 16,506 172 Take-Two Interactive Software, Inc. (AE)(N) 54,600 949 TeleTech Holdings, Inc. (AE)(N) 119,100 3,210 Topps Co., Inc. (The) (N) 40,300 397 Tractor Supply Co. (AE) 40,622 2,045 Triarc Cos., Inc. Class A 58,200 1,138 Under Armour, Inc. Class A (AE)(N) 45,500 2,311 Unifirst Corp. 4,800 199 United Online, Inc. 133,838 1,879 Urban Outfitters, Inc. (AE) 58,900 1,437 Viad Corp. 23,200 973 VistaPrint, Ltd. (AE)(N) 28,900 1,245 Warnaco Group, Inc. (The) (AE) 30,200 854 Washington Post Co. (The) Class B (N) 1,730 1,319 Waste Connections, Inc. (AE) 41,267 1,798 West Marine, Inc. (AE) 21,911 382 WMS Industries, Inc. (AE)(N) 26,100 1,035 ------------ 240,961 ------------ Consumer Staples - 1.7% Alliance One International, Inc. (AE) 272,922 2,093 Boston Beer Co., Inc. Class A (AE) 8,000 281 Coca-Cola Bottling Co. Consolidated (N) 16,826 1,056 Dean Foods Co. (AE) 38,100 1,686 Del Monte Foods Co. 97,600 1,119 Imperial Sugar Co. (N) 25,100 782 J&J Snack Foods Corp. 5,408 223 Loews Corp. - Carolina Group 36,000 2,467 McCormick & Co., Inc. 49,000 1,913 Molson Coors Brewing Co. Class B 40,000 3,232 Nash Finch Co. 10,386 300 NBTY, Inc. (AE) 36,692 1,903 Pathmark Stores, Inc. (AE)(N) 49,600 544 PepsiAmericas, Inc. 26,000 573 Performance Food Group Co. (AE) 14,300 424 Premium Standard Farms, Inc. 40,583 772 Reddy Ice Holdings, Inc. 22,003 571 Ruddick Corp. 3,600 100 Schweitzer-Mauduit International, Inc. 16,113 391 Spartan Stores, Inc. 42,414 1,004 Universal Corp. 1,844 89
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Weis Markets, Inc. 3,867 167 ------------ 21,690 ------------ Financial Services - 16.3% Accredited Home Lenders Holding Co. (AE) 14,798 411 Advance America Cash Advance Centers, Inc. 18,661 260 Advent Software, Inc. (AE)(N) 106,300 3,800 Affiliated Managers Group, Inc. (AE) 56,715 6,318 AG Edwards, Inc. 15,333 1,015 Alliance Data Systems Corp. (AE)(N) 118,858 8,074 AMB Property Corp. (o) 34,300 2,087 American Financial Group, Inc. 16,350 577 American Home Mortgage Investment Corp. (o)(N) 48,366 1,690 American Physicians Capital, Inc. (AE) 4,400 170 Amerisafe, Inc. (AE) 30,240 500 Annaly Capital Management, Inc. (o) 115,000 1,585 Anthracite Capital, Inc. (o) 12,110 166 Anworth Mortgage Asset Corp. (o) 88,000 808 Apollo Investment Corp. 83,500 1,854 Arbor Realty Trust, Inc. (o) 9,700 310 Arch Capital Group, Ltd. (AE) 14,800 956 Ares Capital Corp. 82,650 1,640 Argonaut Group, Inc. (AE) 7,608 255 Arthur J Gallagher & Co. (N) 29,700 851 Ashford Hospitality Trust, Inc. (o) 117,000 1,440 Aspen Insurance Holdings, Ltd. 47,600 1,219 Asset Acceptance Capital Corp. (AE) 7,700 119 Assurant, Inc. 68,017 3,780 Axis Capital Holdings, Ltd. 45,500 1,499 Bancfirst Corp. 4,100 200 Bank of Hawaii Corp. 31,100 1,628 Bankunited Financial Corp. Class A (N) 94,600 2,610 Banner Corp. 4,100 176 Bear Stearns Cos., Inc. (The) (N) 8,600 1,418 BOK Financial Corp. 5,556 295 Bristol West Holdings, Inc. 5,776 96 Capital Trust, Inc. Class A (o)(N) 36,100 1,791 CapitalSource, Inc. (o)(N) 54,800 1,523 Cash America International, Inc. 44,730 1,910 Central Pacific Financial Corp. 21,585 844 CharterMac (N) 7,200 152 Chittenden Corp. 10,900 332 CIT Group, Inc. 21,500 1,268 City Bank 6,900 235 City Holding Co. 4,403 177 CNA Surety Corp. (AE) 69,900 1,485
10 Special Growth Fund RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Colonial BancGroup, Inc. (The) (N) 113,400 2,783 Colonial Properties Trust (o) 26,700 1,312 Commerce Group, Inc. 38,116 1,150 Community Bancorp (AE) 11,775 394 Community Trust Bancorp, Inc. 3,900 152 Corus Bankshares, Inc. (N) 102,715 2,188 Deerfield Triarc Capital Corp. (o) 126,800 2,118 Deluxe Corp. 47,400 1,418 DiamondRock Hospitality Co. (o) 53,300 1,005 Downey Financial Corp. 14,575 1,043 Duke Realty Corp. (o)(N) 30,000 1,324 Education Realty Trust, Inc. (o)(N) 20,200 304 Entertainment Properties Trust (o) 11,568 750 Euronet Worldwide, Inc. (AE) 121,023 3,493 Extra Space Storage, Inc. (o)(N) 22,700 448 Factset Research Systems, Inc. 14,238 827 FBL Financial Group, Inc. Class A 3,400 132 FelCor Lodging Trust, Inc. (o) 82,100 1,812 Fidelity National Financial, Inc. Class A 41,035 974 Fidelity National Information Services, Inc. 26,118 1,111 First American Corp. (N) 120,000 5,086 First Bancorp 14,100 151 First Cash Financial Services, Inc. (AE) 46,349 1,088 First Mutual Bancshares, Inc. (N) 53,652 1,194 First Place Financial Corp. 4,863 116 First Regional Bancorp (AE) 3,876 132 FirstFed Financial Corp. (AE) 33,760 2,328 Fulton Financial Corp. (N) 39,510 632 GFI Group, Inc. (AE)(N) 48,600 3,109 Global Payments, Inc. 52,425 1,980 Gramercy Capital Corp. (o) 3,078 111 Hanmi Financial Corp. (N) 65,256 1,336 HCC Insurance Holdings, Inc. 53,700 1,677 Health Care REIT, Inc. (o)(N) 34,300 1,606 HealthExtras, Inc. (AE)(N) 67,100 1,715 Hersha Hospitality Trust (o)(N) 16,800 188 Highland Hospitality Corp. (o) 89,300 1,418 Hospitality Properties Trust (o) 63,200 3,084 HRPT Properties Trust (o)(N) 139,000 1,810 Huntington Bancshares, Inc. 19,100 445 IBERIABANK Corp. (N) 2,900 167 IMPAC Mortgage Holdings, Inc. (o)(N) 111,487 961 International Securities Exchange Holdings, Inc. Class A (N) 44,200 1,831 Intersections, Inc. (AE)(N) 1,700 20 Intervest Bancshares Corp. Class A (AE) 13,774 418 Investment Technology Group, Inc. (AE) 45,186 1,970 Investors Real Estate Trust (o) 2,500 26 IPC Holdings, Ltd. (N) 88,500 2,606
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- iStar Financial, Inc. (o) 89,400 4,483 ITLA Capital Corp. 400 24 JER Investors Trust, Inc. (o) 44,100 903 John H Harland Co. 5,154 260 Jones Lang LaSalle, Inc. 6,636 693 Knight Capital Group, Inc. Class A (AE) 133,200 2,407 Kohlberg Capital Corp. (AE) 66,225 1,184 Kronos, Inc. (AE) 25,800 980 LTC Properties, Inc. (o) 19,417 548 Luminent Mortgage Capital, Inc. (o) 27,866 258 Macatawa Bank Corp. (N) 6,100 120 MCG Capital Corp. 121,200 2,396 Meadowbrook Insurance Group, Inc. (AE) 18,800 189 Medical Properties Trust, Inc. (o) 11,199 175 Mercantile Bank Corp. 3,700 129 MFA Mortgage Investments, Inc. (o) 40,900 304 Mid-America Apartment Communities, Inc. (o) 22,300 1,341 Municipal Mortgage & Equity LLC (N) 7,800 246 Nara Bancorp, Inc. 25,010 491 National Penn Bancshares, Inc. (N) 6,186 116 National Retail Properties, Inc. (o)(N) 90,400 2,147 Nationwide Financial Services, Inc. (N) 27,300 1,492 Navigators Group, Inc. (AE) 12,820 613 Nelnet, Inc. Class A (AE)(N) 28,200 780 New Century Financial Corp. (o)(N) 57,000 1,725 Newcastle Investment Corp. (o) 53,484 1,734 NorthStar Realty Finance Corp. (o) 296,011 5,225 Ocwen Financial Corp. (AE) 24,197 341 Odyssey Re Holdings Corp. (N) 28,900 1,140 Ohio Casualty Corp. 17,300 511 Old Republic International Corp. 60,250 1,344 Oriental Financial Group 12,279 157 Pacific Capital Bancorp 92,169 2,946 Pennsylvania Real Estate Investment Trust (o) 29,100 1,243 Philadelphia Consolidated Holding Co. (AE) 28,200 1,271 Pico Holdings, Inc. (AE) 8,700 374 Pinnacle Financial Partners, Inc. (AE) 321 10 Piper Jaffray Cos., Inc. (AE) 11,446 789 PMI Group, Inc. (The) (N) 29,000 1,387 Preferred Bank 2,600 170 Protective Life Corp. 31,300 1,531
Special Growth Fund 11 RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Provident Financial Holdings, Inc. 657 19 Provident Financial Services, Inc. 24,600 448 PS Business Parks, Inc. (o) 9,966 750 R&G Financial Corp. Class B 31,400 236 Radian Group, Inc. 24,000 1,445 RAIT Financial Trust (o) 67,800 2,535 Raymond James Financial, Inc. 112,000 3,575 Realty Income Corp. (o) 50,700 1,459 Redwood Trust, Inc. (o) 8,515 541 RenaissanceRe Holdings, Ltd. 29,000 1,545 RLI Corp. 13,400 742 Ryder System, Inc. (N) 55,600 3,032 S1 Corp. (AE) 51,191 294 Safety Insurance Group, Inc. 30,088 1,469 SeaBright Insurance Holdings, Inc. (AE) 15,600 281 SEI Investments Co. (N) 35,700 2,225 South Financial Group, Inc. (The) 42,300 1,093 Southwest Bancorp, Inc. 47,582 1,268 Sovran Self Storage, Inc. (o) 24,400 1,464 Spirit Finance Corp. (o)(N) 76,000 952 Stancorp Financial Group, Inc. 42,600 2,038 Sterling Bancorp 3,605 67 Sterling Bancshares, Inc. 42,450 512 Sunstone Hotel Investors, Inc. (o) 56,000 1,584 Susquehanna Bancshares, Inc. (N) 25,600 646 SWS Group, Inc. 46,259 1,167 Taylor Capital Group, Inc. 9,553 363 TCF Financial Corp. (N) 16,800 426 TD Banknorth, Inc. 40,948 1,321 Thornburg Mortgage, Inc. (o)(N) 89,700 2,413 TierOne Corp. 18,201 548 Triad Guaranty, Inc. (AE) 19,151 986 Umpqua Holdings Corp. (N) 4,200 119 United America Indemnity, Ltd. Class A (AE) 10,600 256 Unitrin, Inc. 25,300 1,296 Ventas, Inc. (o) 10,000 462 Weingarten Realty Investors (o)(N) 6,100 302 Whitney Holding Corp. (N) 32,049 1,014 Williams Scotsman International, Inc. (AE)(N) 8,200 166 Wilmington Trust Corp. (N) 18,800 788 Winston Hotels, Inc. (o) 10,600 148 World Acceptance Corp. (AE) 868 38 Zenith National Insurance Corp. 53,372 2,439 Zions Bancorporation 16,500 1,400 ------------ 209,516 ------------ Health Care - 11.8% Accelrys, Inc. (AE) 102,100 648 Adams Respiratory Therapeutics, Inc. (AE) 58,933 2,643
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Advanced Medical Optics, Inc. (AE)(N) 32,400 1,191 Albany Molecular Research, Inc. (AE) 27,066 276 Alliance Imaging, Inc. (AE)(N) 17,900 125 Allscripts Healthcare Solutions, Inc. (AE) 99,129 3,033 Alpharma, Inc. Class A 18,100 499 Amedisys, Inc. (AE) 40,766 1,318 American Medical Systems Holdings, Inc. (AE)(N) 284,183 5,655 American Oriental Bioengineering, Inc. (AE) 73,800 948 AMERIGROUP Corp. (AE) 31,964 1,159 Applera Corp. - Celera Group (AE) 244,100 3,871 Apria Healthcare Group, Inc. (AE) 38,162 1,060 Arthrocare Corp. (AE) 67,478 2,490 Beckman Coulter, Inc. (N) 8,700 561 Bio-Rad Laboratories, Inc. Class A (AE) 13,492 1,161 Bruker BioSciences Corp. (AE) 25,832 192 Cerner Corp. (AE)(N) 94,800 4,259 Charles River Laboratories International, Inc. (AE) 38,600 1,737 Community Health Systems, Inc. (AE) 96,414 3,447 Conmed Corp. (AE) 13,871 336 Cooper Cos., Inc. (The) (N) 43,400 2,070 Corvel Corp. (AE) 51,400 2,422 Covance, Inc. (AE) 21,600 1,332 Cutera, Inc. (AE) 35,900 1,025 DaVita, Inc. (AE) 153,375 8,374 Digene Corp. (AE) 31,400 1,616 Discovery Laboratories, Inc. (AE)(N) 63,000 158 Enzon Pharmaceuticals, Inc. (AE) 50,888 454 Haemonetics Corp. (AE) 47,062 2,270 Health Net, Inc. (AE) 14,500 706 Healthcare Services Group (N) 112,400 3,251 Healthspring, Inc. (AE) 128,200 2,522 Healthways, Inc. (AE)(N) 43,589 1,979 Henry Schein, Inc. (AE) 75,212 3,819 Hologic, Inc. (AE) 136,658 7,591 Illumina, Inc. (AE) 18,000 735 Immucor, Inc. (AE) 19,200 606 Intralase Corp. (AE)(N) 78,300 1,926 Invacare Corp. 23,700 512 Inverness Medical Innovations, Inc. (AE)(N) 41,700 1,719 King Pharmaceuticals, Inc. (AE) 151,700 2,709 Landauer, Inc. 5,604 288
12 Special Growth Fund RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- LHC Group, Inc. (AE) 9,627 251 LifePoint Hospitals, Inc. (AE) 51,600 1,753 Medcath Corp. (AE) 48,852 1,399 Medical Action Industries, Inc. (AE) 10,467 330 Mentor Corp. 58,769 2,997 Mindray Medical International, Ltd. - ADR (AE)(N) 18,600 452 Molina Healthcare, Inc. (AE)(N) 39,540 1,219 Myriad Genetics, Inc. (AE)(N) 39,200 1,401 Nabi Biopharmaceuticals (AE)(N) 44,900 260 Neurocrine Biosciences, Inc. (AE) 26,200 366 Nighthawk Radiology Holdings, Inc. (AE)(N) 78,300 1,974 Noven Pharmaceuticals, Inc. (AE) 17,592 481 NuVasive, Inc. (AE)(N) 55,500 1,344 Omrix Biopharmaceuticals, Inc. (AE) 19,600 668 Palomar Medical Technologies, Inc. (AE)(N) 70,400 3,503 Patterson Cos., Inc. (AE) 88,374 3,324 Perrigo Co. 58,468 1,010 Pharmaceutical Product Development, Inc. 101,058 3,487 Pharmacopeia Drug Discovery, Inc. (AE) 54,750 242 Pharmacyclics, Inc. (AE)(N) 5,300 26 PharmaNet Development Group, Inc. (AE) 23,351 464 Phase Forward, Inc. (AE) 62,000 839 PolyMedica Corp. (N) 23,200 929 PSS World Medical, Inc. (AE) 147,952 2,962 Psychiatric Solutions, Inc. (AE) 101,230 3,942 Quality Systems, Inc. 58,364 2,476 RehabCare Group, Inc. (AE) 8,700 132 ResMed, Inc. (AE) 41,500 2,182 Savient Pharmaceuticals, Inc. (AE) 49,845 744 Sierra Health Services, Inc. (AE) 80,742 3,246 Stericycle, Inc. (AE)(N) 34,300 2,641 STERIS Corp. 42,900 1,109 Techne Corp. (AE) 59,742 3,467 Universal Health Services, Inc. Class B 38,700 2,242 Ventana Medical Systems, Inc. (AE)(N) 29,400 1,238 Vital Images, Inc. (AE) 19,856 666 Watson Pharmaceuticals, Inc. (AE)(N) 66,300 1,805 WellCare Health Plans, Inc. (AE)(N) 84,212 6,525 West Pharmaceutical Services, Inc. 15,369 746 Zoll Medical Corp. (AE) 28,907 1,813 ------------ 151,348 ------------ Materials and Processing - 9.6% Acuity Brands, Inc. 20,057 1,164 AEP Industries, Inc. (AE) 2,970 139
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Affordable Residential Communities, LP (AE)(N) 34,410 377 Airgas, Inc. 82,051 3,415 Albemarle Corp. 31,500 2,456 AM Castle & Co. (N) 53,160 1,329 Barnes Group, Inc. (N) 53,700 1,150 Bluegreen Corp. (AE)(N) 8,600 112 Brookfield Homes Corp. (N) 24,000 871 Buckeye Technologies, Inc. (AE) 122,252 1,463 Building Materials Holding Corp. (N) 75,000 1,787 Cambrex Corp. 105,219 2,302 Carpenter Technology Corp. 31,198 3,653 Celanese Corp. Class A 84,600 2,221 Ceradyne, Inc. (AE) 12,900 698 CF Industries Holdings, Inc. 62,900 1,918 Chesapeake Corp. 21,000 369 Chicago Bridge & Iron Co. NV 95,075 2,826 Comfort Systems USA, Inc. 51,500 631 Commercial Metals Co. 41,900 1,136 Constar International, Inc. (AE)(N) 52,000 393 Crown Holdings, Inc. (AE) 32,400 715 Cytec Industries, Inc. (N) 58,700 3,418 Eastman Chemical Co. (N) 56,500 3,309 EMCOR Group, Inc. (AE) 44,780 2,571 Energy Conversion Devices, Inc. (AE) 78,187 2,694 Ennis, Inc. (N) 82,100 2,068 FMC Corp. 26,500 2,063 Georgia Gulf Corp. (N) 44,500 926 Gerdau Ameristeel Corp. 146,000 1,469 GrafTech International, Ltd. (AE) 85,953 698 Granite Construction, Inc. 17,993 964 Greif, Inc. Class A 3,453 395 Harsco Corp. 19,100 1,640 HB Fuller Co. 90,200 2,333 Hercules, Inc. (AE) 148,500 2,912 Huntsman Corp. (AE) 41,000 857 Infrasource Services, Inc. (AE) 38,169 811 Innospec, Inc. 25,724 1,376 Insituform Technologies, Inc. Class A (AE)(N) 66,900 1,867 Jacobs Engineering Group, Inc. (AE) 25,200 2,282 Kaydon Corp. 7,900 341 Lamson & Sessions Co. (The) (AE)(N) 55,800 1,456 Landec Corp. (AE) 24,538 301 Layne Christensen Co. (AE) 26,000 911 Lennox International, Inc. (N) 24,100 731 Louisiana-Pacific Corp. (N) 56,800 1,301 Lubrizol Corp. 43,800 2,257
Special Growth Fund 13 RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Mercer International, Inc. (AE)(N) 66,700 808 Metal Management, Inc. 49,800 2,044 Mueller Industries, Inc. 44,900 1,462 Myers Industries, Inc. 28,532 491 Neenah Paper, Inc. 18,837 643 Novagold Resources, Inc. (AE) 64,000 1,054 Novelis, Inc. 67,641 2,492 Olin Corp. 79,400 1,337 Olympic Steel, Inc. (N) 21,000 559 OM Group, Inc. (AE) 42,600 2,081 Perini Corp. (AE) 19,636 593 Pioneer Cos., Inc. (AE) 15,579 466 PolyOne Corp. (AE) 82,200 603 PW Eagle, Inc. 10,908 360 Quanex Corp. 22,300 874 Quanta Services, Inc. (AE) 130,241 2,679 Resource Capital Corp. (N) 12,800 239 Rock-Tenn Co. Class A 121,954 3,990 Rockwood Holdings, Inc. (AE) 12,800 339 RPM International, Inc. 118,571 2,754 SAIC, Inc. (AE)(N) 89,600 1,662 Schnitzer Steel Industries, Inc. Class A (N) 47,392 1,825 Spartech Corp. 74,940 2,100 Standard Register Co. (The) 24,146 305 Steel Dynamics, Inc. 54,000 2,117 Superior Essex, Inc. (AE) 24,280 775 Temple-Inland, Inc. 30,600 1,528 Texas Industries, Inc. (N) 24,500 1,799 Timken Co. 66,300 1,897 Tredegar Corp. 16,190 372 URS Corp. (AE) 34,300 1,474 USEC, Inc. 45,060 611 Valmont Industries, Inc. 14,247 790 Washington Group International, Inc. (AE) 84,584 4,832 Westlake Chemical Corp. (N) 85,783 2,846 ------------ 123,877 ------------ Miscellaneous - 1.5% Foster Wheeler, Ltd. (AE) 98,275 5,255 GP Strategies Corp. (AE) 9,992 85 Hillenbrand Industries, Inc. (N) 34,100 1,944 Johnson Controls, Inc. 18,000 1,664 McDermott International, Inc. (AE) 133,024 6,869 Walter Industries, Inc. 72,533 2,044 Wesco Financial Corp. 4,203 2,034 ------------ 19,895 ------------ Other Energy - 3.6% Alon USA Energy, Inc. (N) 9,500 256 Atlas Pipeline Partners, LP (N) 31,300 1,618 Bronco Drilling Co., Inc. (AE) 48,900 776
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Cameron International Corp. (AE) 25,143 1,320 Cimarex Energy Co. (N) 49,900 1,870 Compagnie Generale de Geophysique-Veritas - ADR (AE) 23,830 946 Comstock Resources, Inc. (AE) 45,000 1,438 Core Laboratories NV (AE) 67,718 5,580 Dresser-Rand Group, Inc. (AE)(N) 31,100 807 Dril-Quip, Inc. (AE) 39,012 1,451 Enbridge Energy Partners, LP Class A (N) 29,000 1,534 ENSCO International, Inc. (N) 33,300 1,694 Foundation Coal Holdings, Inc. (N) 43,600 1,451 Frontier Oil Corp. 40,500 1,151 Global Industries, Ltd. (AE) 98,800 1,331 Grey Wolf, Inc. (AE) 101,205 691 Hercules Offshore, Inc. (AE)(N) 46,500 1,230 Horizon Offshore, Inc. (AE) 22,400 376 Hornbeck Offshore Services, Inc. (AE)(N) 5,600 154 Input/Output, Inc. (AE)(N) 102,800 1,407 Meridian Resource Corp. (AE) 84,979 236 National-Oilwell Varco, Inc. (AE) 33,285 2,018 Oceaneering International, Inc. (AE) 22,200 876 Oil States International, Inc. (AE) 15,100 435 Ormat Technologies, Inc. (N) 19,200 752 Penn Virginia Corp. 10,581 775 Pioneer Drilling Co. (AE)(N) 70,600 895 Talisman Energy, Inc. 79,965 1,409 TEPPCO Partners, LP (N) 38,000 1,577 Tesoro Corp. 11,700 964 Tetra Technologies, Inc. (AE) 112,162 2,598 Trico Marine Services, Inc. (AE) 25,600 833 Union Drilling, Inc. (AE) 14,300 183 Unit Corp. (AE) 25,000 1,212 VeraSun Energy Corp. (AE) 75,445 1,293 Western Refining, Inc. (N) 21,200 580 Whiting Petroleum Corp. (AE) 32,100 1,463 XTO Energy, Inc. 36,609 1,848 ------------ 47,028 ------------ Producer Durables - 7.7% Advanced Energy Industries, Inc. (AE) 6,500 113 AGCO Corp. (AE) 36,248 1,231 Altra Holdings, Inc. (AE) 92,000 1,325 AO Smith Corp. 9,700 372 Applied Industrial Technologies, Inc. 16,600 407 Arris Group, Inc. (AE)(N) 110,971 1,578
14 Special Growth Fund RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- ASML Holding NV (AE) 155,933 3,979 Audiovox Corp. Class A (AE) 4,922 76 Axcelis Technologies, Inc. (AE) 98,400 634 Baldor Electric Co. (N) 38,800 1,370 BE Aerospace, Inc. (AE) 84,385 2,513 Beazer Homes USA, Inc. (N) 16,200 705 C-COR, Inc. (AE) 69,424 950 Cascade Corp. 3,600 193 Crane Co. 46,159 1,792 Credence Systems Corp. (AE) 584,275 2,845 Crown Castle International Corp. (AE)(N) 53,000 1,863 CTS Corp. 22,636 351 Desarrolladora Homex SAB de CV - ADR (AE) 32,366 1,925 Diebold, Inc. 26,400 1,224 DR Horton, Inc. (N) 37,566 1,092 Ducommun, Inc. (AE) 64,000 1,441 Entegris, Inc. (AE)(N) 166,327 1,785 ESCO Technologies, Inc. (AE)(N) 93,407 4,462 Flowserve Corp. (AE) 17,800 945 Gardner Denver, Inc. (AE) 30,700 1,184 Gorman-Rupp Co. (The) 5,900 238 Herman Miller, Inc. 95,500 3,591 Hubbell, Inc. Class B (N) 33,000 1,591 Intevac, Inc. (AE)(N) 90,700 2,005 Itron, Inc. (AE) 12,868 742 K&F Industries Holdings, Inc. (AE) 23,300 543 Kadant, Inc. (AE) 1,200 33 Kennametal, Inc. 44,264 2,736 Kimball International, Inc. Class B 24,824 612 L-1 Identity Solutions, Inc. (AE)(N) 83,700 1,209 Lam Research Corp. (AE) 61,121 2,800 Lydall, Inc. (AE) 8,739 117 Mettler Toledo International, Inc. (AE) 81,500 6,748 Milacron, Inc. (AE)(N) 166,129 146 MKS Instruments, Inc. (AE) 34,600 757 Mueller Water Products, Inc. Class A 138,904 1,886 Nordson Corp. 5,600 290 Orbital Sciences Corp. (AE) 58,513 998 Pall Corp. 52,700 1,832 Paxar Corp. (AE) 20,600 453 Photon Dynamics, Inc. (AE) 20,746 234 Photronics, Inc. (AE)(N) 25,700 428 Polycom, Inc. (AE) 144,143 4,846 Regal-Beloit Corp. 20,833 1,048 Robbins & Myers, Inc. 53,886 2,343 SBA Communications Corp. Class A (AE)(N) 98,500 2,926 Spectralink Corp. (AE)(N) 4,077 37 Steelcase, Inc. Class A (N) 43,800 858 Technical Olympic USA, Inc. (AE)(N) 94,800 903 Technitrol, Inc. 38,700 852
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Tecumseh Products Co. Class A (AE)(N) 63,997 1,146 Teledyne Technologies, Inc. (AE) 30,300 1,156 Tennant Co. 33,545 1,037 Teradyne, Inc. (AE)(N) 4,700 70 Thomas & Betts Corp. (AE) 6,100 292 Toll Brothers, Inc. (AE)(N) 57,700 1,952 Tollgrade Communications, Inc. (AE) 8,876 89 Ultra Clean Holdings (AE)(N) 102,500 1,429 Ultratech, Inc. (AE)(N) 67,000 813 Varian Semiconductor Equipment Associates, Inc. (AE)(N) 192,883 7,937 Verigy, Ltd. (AE) 150,185 2,753 ------------ 98,831 ------------ Technology - 15.5% 3Com Corp. (AE) 377,500 1,472 Acme Packet, Inc. (AE)(N) 77,700 1,234 Actel Corp. (AE) 31,369 560 ActivIdentity Corp. (AE)(N) 4,800 25 Acxiom Corp. 32,099 729 Adaptec, Inc. (AE) 289,584 1,043 Akamai Technologies, Inc. (AE)(N) 74,800 4,202 Alliance Semiconductor Corp. (AE) 75,400 328 Amdocs, Ltd. (AE) 68,800 2,386 American Reprographics Co. (AE) 73,035 2,287 American Software, Inc. Class A 9,126 64 AMIS Holdings, Inc. (AE) 22,145 229 Amkor Technology, Inc. (AE) 62,600 659 Amphenol Corp. Class A 98,422 6,665 Ansoft Corp. (AE) 32,554 910 Ansys, Inc. (AE) 136,830 6,826 Applera Corp. - Applied Biosystems Group 11,300 393 Applied Micro Circuits Corp. (AE)(N) 673,800 2,318 Ariba, Inc. (AE)(N) 89,500 832 ARM Holdings PLC - ADR 129,900 940 Arrow Electronics, Inc. (AE) 56,000 1,974 ASE Test, Ltd. (AE) 94,000 1,035 AsiaInfo Holdings, Inc. (AE) 26,166 205 Aspen Technology, Inc. (AE)(N) 81,800 838 Atmel Corp. (AE) 207,622 1,242 Avanex Corp. (AE)(N) 160,500 342 Avici Systems, Inc. (AE)(N) 29,637 206 Avnet, Inc. (AE) 107,800 3,347 BearingPoint, Inc. (AE)(N) 65,000 521 Bel Fuse, Inc. Class B 3,800 123 Benchmark Electronics, Inc. (AE) 160,418 3,633 Blackbaud, Inc. 53,662 1,286
Special Growth Fund 15 RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Brocade Communications Systems, Inc. (AE)(N) 422,637 3,626 Captaris, Inc. (AE) 90,117 794 Carrier Access Corp. (AE) 19,785 114 Cbeyond, Inc. (AE)(N) 59,600 1,771 Ciber, Inc. (AE) 1,300 9 Ciena Corp. (AE)(N) 122,809 3,450 Citrix Systems, Inc. (AE) 44,000 1,393 Cognizant Technology Solutions Corp. Class A (AE) 40,100 3,420 Coherent, Inc. (AE) 26,492 815 Comverse Technology, Inc. (AE)(N) 40,000 774 Cray, Inc. (AE) 22,553 262 CSG Systems International, Inc. (AE) 37,651 944 Cubic Corp. (N) 31,800 665 Daktronics, Inc. (N) 53,600 1,853 DealerTrack Holdings, Inc. (AE) 52,300 1,450 Dendrite International, Inc. (AE) 36,054 393 Digimarc Corp. (AE) 7,357 70 Digital River, Inc. (AE)(N) 38,400 1,965 Ditech Networks, Inc. (AE) 13,600 98 Eagle Test Systems, Inc. (AE)(N) 30,500 441 Echelon Corp. (AE)(N) 7,500 56 EMS Technologies, Inc. (AE) 4,010 83 Emulex Corp. (AE) 49,025 870 Equinix, Inc. (AE)(N) 76,900 6,465 Excel Technology, Inc. (AE) 6,500 179 Extreme Networks (AE) 165,178 685 Flir Systems, Inc. (AE)(N) 23,400 723 Foundry Networks, Inc. (AE)(N) 64,300 930 Gartner, Inc. (AE)(N) 257,600 5,631 Gerber Scientific, Inc. (AE) 12,400 153 II-VI, Inc. (AE)(N) 43,600 1,310 Ikanos Communications, Inc. (AE)(N) 64,300 521 Ingram Micro, Inc. Class A (AE) 95,600 1,865 Integrated Device Technology, Inc. (AE) 190,700 2,885 Integrated Silicon Solutions, Inc. (AE)(N) 114,600 693 Interwoven, Inc. (AE) 181,799 2,854 JDS Uniphase Corp. (AE)(N) 93,175 1,657 Kemet Corp. (AE)(N) 81,100 612 Keynote Systems, Inc. (AE)(N) 65,300 772 Lattice Semiconductor Corp. (AE) 139,753 819 Leadis Technology, Inc. (AE)(N) 4,700 20 Logility, Inc. (AE) 5,249 39 Magma Design Automation, Inc. (AE) 15,907 135 Manhattan Associates, Inc. (AE) 35,189 988 McAfee, Inc. (AE) 58,000 1,697 Mentor Graphics Corp. (AE)(N) 209,333 3,894 Mercury Computer Systems, Inc. (AE)(N) 22,500 291 Merge Technologies, Inc. (AE) 82,340 455 Merix Corp. (AE) 14,154 122
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Methode Electronics, Inc. 21,700 239 Micros Systems, Inc. (AE) 71,932 4,050 MicroStrategy, Inc. Class A (AE) 7,521 913 MIPS Technologies, Inc. Class A (AE)(N) 15,000 125 Ness Technologies, Inc. (AE) 19,400 260 Netgear, Inc. (AE)(N) 16,000 412 Novell, Inc. (AE) 130,000 943 Nuance Communications, Inc. (AE)(N) 252,000 2,903 Opnet Technologies, Inc. (AE) 12,049 163 Opsware, Inc. (AE)(N) 164,500 1,316 Orckit Communications, Ltd. (AE)(N) 52,100 511 Parametric Technology Corp. (AE) 228,757 4,534 Park Electrochemical Corp. 20,800 555 Pegasystems, Inc. 9,579 89 Planar Systems, Inc. (AE)(N) 15,037 157 PMC - Sierra, Inc. (AE)(N) 271,600 1,711 QLogic Corp. (AE) 87,300 1,598 Quantum Corp. (AE)(N) 416,700 1,038 RADVision, Ltd. (AE) 14,800 289 RADWARE, Ltd. (AE)(N) 33,900 439 RealNetworks, Inc. (AE)(N) 125,700 1,341 Riverbed Technology, Inc. (AE)(N) 34,200 1,047 Rockwell Automation, Inc. 54,939 3,363 Salesforce.com, Inc. (AE)(N) 31,700 1,389 Sanmina-SCI Corp. (AE) 217,100 760 Seachange International, Inc. (AE)(N) 81,600 816 Seagate Technology (N) 96,545 2,615 Sigma Designs, Inc. (AE)(N) 43,100 1,043 Sigmatel, Inc. (AE)(N) 95,700 371 Silicon Image, Inc. (AE) 47,200 571 Silicon Storage Technology, Inc. (AE)(N) 284,259 1,416 Sirf Technology Holdings, Inc. (AE) 40,647 1,193 Skyworks Solutions, Inc. (AE)(N) 414,000 2,720 Solectron Corp. (AE)(N) 331,900 1,079 SonicWALL, Inc. (AE) 86,400 728 Standard Microsystems Corp. (AE) 29,200 815 Sybase, Inc. (AE) 44,342 1,148 Sycamore Networks, Inc. (AE)(N) 161,400 602 SYNNEX Corp. (AE)(N) 34,783 668 Synopsys, Inc. (AE) 85,800 2,282 Syntax-Brillian Corp. (AE) 49,800 394 Tekelec (AE)(N) 158,200 2,436 Tessera Technologies, Inc. (AE) 137,171 5,245 TIBCO Software, Inc. (AE) 257,200 2,387
16 Special Growth Fund RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Transaction Systems Architects, Inc. (AE)(N) 100,089 3,618 Trident Microsystems, Inc. (AE) 18,300 382 Triquint Semiconductor, Inc. (AE)(N) 255,500 1,201 Trizetto Group, Inc. (The) (AE)(N) 94,200 1,954 Tyler Technologies, Inc. (AE) 62,562 870 Ultimate Software Group, Inc. (AE) 124,100 3,026 Unisys Corp. (AE)(N) 407,000 3,508 Utstarcom, Inc. (AE)(N) 169,600 1,498 Varian, Inc. (AE) 21,900 1,172 VeriFone Holdings, Inc. (AE)(N) 135,400 5,412 Verint Systems, Inc. (AE)(N) 23,600 780 Viasat, Inc. (AE) 16,200 534 Vignette Corp. (AE) 49,093 880 Vocus, Inc. (AE)(N) 136,100 2,538 Wavecom Sa - ADR (AE)(N) 38,600 584 Westell Technologies, Inc. Class A (AE) 68,600 156 Western Digital Corp. (AE) 86,400 1,693 Zoran Corp. (AE)(N) 82,000 1,146 ------------ 200,191 ------------ Utilities - 3.4% AGL Resources, Inc. 18,000 707 Allete, Inc. (N) 16,700 803 Atlantic Tele-Network, Inc. 1,800 54 Atmos Energy Corp. 42,181 1,318 Black Hills Corp. 24,879 922 Centerpoint Energy, Inc. (N) 85,800 1,481 Cincinnati Bell, Inc. (AE) 166,800 811 CMS Energy Corp. (N) 79,900 1,334 CT Communications, Inc. 38,312 936 General Communication, Inc. Class A (AE) 6,637 103 Leap Wireless International, Inc. (AE) 48,000 3,154 MDU Resources Group, Inc. (N) 119,300 3,084 NeuStar, Inc. Class A (AE) 87,644 2,707 New Jersey Resources Corp. 15,400 718 NII Holdings, Inc. (AE) 42,226 3,116 Northeast Utilities 91,400 2,527 NSTAR (N) 18,700 625 OGE Energy Corp. 45,800 1,773 Pepco Holdings, Inc. 128,300 3,282 Pinnacle West Capital Corp. (N) 37,200 1,815 PNM Resources, Inc. 25,500 777 RCN Corp. (AE) 24,200 718 Sierra Pacific Resources (AE) 112,400 1,913 Southern Union Co. 51,400 1,429 Southwest Gas Corp. 9,600 377 TECO Energy, Inc. (N) 98,700 1,675 UGI Corp. 81,500 2,234
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Unisource Energy Corp. 39,828 1,494 USA Mobility, Inc. 9,608 195 Westar Energy, Inc. 42,197 1,121 ------------ 43,203 ------------ TOTAL COMMON STOCKS (cost $1,029,418) 1,201,651 ------------ WARRANTS & RIGHTS - 0.0% Financial Services - 0.0% Washington Mutual, Inc. 2050 Warrants (AE) 226,300 33 ------------ TOTAL WARRANTS & RIGHTS (cost $47) 33 ------------ SHORT-TERM INVESTMENTS - 6.9% Russell Investment Company Money Market Fund 84,185,444 84,185 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 4,000 3,977 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $88,162) 88,162 ------------ OTHER SECURITIES - 26.2% Russell Investment Company Money Market Fund (X) 83,362,972 83,363 State Street Securities Lending Quality Trust (X) 254,167,909 254,168 ------------ TOTAL OTHER SECURITIES (cost $337,531) 337,531 ------------ TOTAL INVESTMENTS - 126.4% (identified cost $1,455,158) 1,627,377 OTHER ASSETS AND LIABILITIES, NET - (26.4)% (340,014) ------------ NET ASSETS - 100.0% 1,287,363 ============
See accompanying notes which are an integral part of the schedules of investments. Special Growth Fund 17 RUSSELL INVESTMENT COMPANY SPECIAL GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Russell 2000 Mini Index (CME) expiration date 03/07 (1,095) 88,082 991 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 991 ===============
See accompanying notes which are an integral part of the schedules of investments. 18 Special Growth Fund RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 98.8% Auto and Transportation - 2.2% ArvinMeritor, Inc. 32,300 622 Burlington Northern Santa Fe Corp. (U) 20,000 1,607 CH Robinson Worldwide, Inc. 88,394 4,689 Continental Airlines, Inc. Class A (AE)(N) 30,200 1,253 CSX Corp. 618,960 22,772 Expeditors International Washington, Inc. 22,500 960 FedEx Corp. (U) 80,700 8,909 Ford Motor Co. 545,500 4,435 Goodyear Tire & Rubber Co. (The) (AE) 6,700 165 Harley-Davidson, Inc. (N) 79,400 5,421 Heartland Express, Inc. 7,900 134 Norfolk Southern Corp. 315,970 15,688 Overseas Shipholding Group, Inc. 81,119 5,040 Paccar, Inc. (N) 194,300 12,993 Pacer International, Inc. 20,000 623 Southwest Airlines Co. 104,800 1,582 Tidewater, Inc. 26,700 1,377 TRW Automotive Holdings Corp. (AE) 23,900 625 UAL Corp. (AE) 21,100 911 Union Pacific Corp. (U) 79,453 8,025 US Airways Group, Inc. (AE) 12,000 672 ------------ 98,503 ------------ Consumer Discretionary - 13.6% Abercrombie & Fitch Co. Class A 16,700 1,328 Accenture, Ltd. Class A 249,340 9,413 Aeropostale, Inc. (AE) 52,200 1,876 Alberto-Culver Co. Class B 50,000 1,144 American Eagle Outfitters, Inc. (N) 356,265 11,536 American Greetings Corp. Class A 154,080 3,701 AnnTaylor Stores Corp. (AE) 93,900 3,240 Autonation, Inc. (AE) 448,089 10,060 Barnes & Noble, Inc. 42,900 1,670 Belo Corp. Class A 8,700 163 Best Buy Co., Inc. (U) 90,000 4,536 Big Lots, Inc. (AE) 144,230 3,740 BJ's Wholesale Club, Inc. (AE) 20,700 632 Brinker International, Inc. 144,950 4,573 CBRL Group, Inc. 3,741 175 CBS Corp. Class B (U) 532,200 16,589 CEC Entertainment, Inc. (AE) 13,100 554 Chipotle Mexican Grill, Inc. Class B (AE) 14,889 824 Circuit City Stores, Inc. 86,370 1,763 Coach, Inc. (AE) 214,500 9,837 Coldwater Creek, Inc. (AE) 23,900 446 Columbia Sportswear Co. 2,900 188
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Convergys Corp. (AE) 7,200 187 Corporate Executive Board Co. 28,400 2,577 Costco Wholesale Corp. 82,830 4,653 Darden Restaurants, Inc. 295,100 11,550 Dillard's, Inc. Class A 253,070 8,690 DIRECTV Group, Inc. (The) (AE)(U) 823,530 20,086 Dolby Laboratories, Inc. Class A (AE) 8,600 288 Dollar Tree Stores, Inc. (AE) 36,700 1,155 DreamWorks Animation SKG, Inc. Class A (AE) 22,100 623 Dress Barn, Inc. (AE) 58,400 1,312 eBay, Inc. (AE)(U) 194,700 6,306 EchoStar Communications Corp. Class A (AE) 91,600 3,695 Estee Lauder Cos., Inc. (The) Class A (N) 122,200 5,805 Family Dollar Stores, Inc. 148,500 4,811 Foot Locker, Inc. 112,400 2,522 GameStop Corp. Class A (AE) 30,100 1,608 Gannett Co., Inc. 111,800 6,500 Google, Inc. Class A (AE)(U) 38,350 19,225 Group 1 Automotive, Inc. 17,400 922 Guess?, Inc. (AE) 13,200 952 Hasbro, Inc. 111,700 3,172 InterActiveCorp (AE) 24,300 933 ITT Educational Services, Inc. (AE) 14,700 1,141 Jack in the Box, Inc. (AE) 11,200 692 Jarden Corp. (AE) 38,100 1,397 JC Penney Co., Inc. 180,600 14,672 Jones Apparel Group, Inc. 123,870 4,231 Kimberly-Clark Corp. 72,800 5,052 Kohl's Corp. (AE) 202,400 14,352 Limited Brands, Inc. 115,100 3,216 Liz Claiborne, Inc. 46,300 2,056 Lowe's Cos., Inc. 232,000 7,821 Manpower, Inc. 222,089 16,197 Marriott International, Inc. Class A (U) 391,490 18,846 Mattel, Inc. 361,500 8,806 McClatchy Co. Class A 20,200 781 McDonald's Corp. (U) 243,431 10,796 McGraw-Hill Cos., Inc. (The) 599,885 40,240 Men's Wearhouse, Inc. (The) 32,300 1,387 MPS Group, Inc. (AE) 22,800 342 NetFlix, Inc. (AE) 7,000 160 News Corp. Class A 1,108,500 25,773 Nike, Inc. Class B 43,900 4,338 Nordstrom, Inc. 98,900 5,510
Quantitative Equity Fund 19 RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Office Depot, Inc. (AE) 390,798 14,612 Pacific Sunwear of California, Inc. (AE) 27,000 529 Rare Hospitality International, Inc. (AE) 8,800 278 Rent-A-Center, Inc. Class A (AE) 32,500 957 Ross Stores, Inc. 15,500 502 RR Donnelley & Sons Co. 82,600 3,064 Scholastic Corp. (AE) 19,000 672 Sears Holdings Corp. (AE) 1,000 177 Sonic Corp. (AE) 6,900 153 Staples, Inc. (U) 258,550 6,650 Starbucks Corp. (AE)(U) 240,380 8,399 Talbots, Inc. 23,700 559 Target Corp. (U) 364,600 22,372 Tech Data Corp. (AE) 9,100 338 Time Warner, Inc. 2,242,450 49,042 TJX Cos., Inc. 1,484,560 43,898 Tween Brands, Inc. (AE) 13,800 472 United Auto Group, Inc. 3,900 93 United Stationers, Inc. (AE) 1,178 60 Walt Disney Co. (The) 754,410 26,533 Warner Music Group Corp. 32,400 695 Waste Management, Inc. 406,300 15,431 WESCO International, Inc. (AE) 18,000 1,093 Wynn Resorts, Ltd. (N) 44,300 4,950 Yum! Brands, Inc. 74,900 4,495 ------------ 589,390 ------------ Consumer Staples - 6.2% Altria Group, Inc. 153,280 13,395 Coca-Cola Co. (The) 311,750 14,927 ConAgra Foods, Inc. 339,100 8,718 Constellation Brands, Inc. Class A (AE) 54,400 1,346 CVS Corp. 48,940 1,647 Dean Foods Co. (AE) 24,440 1,081 Del Monte Foods Co. 46,000 527 General Mills, Inc. 277,600 15,890 Hormel Foods Corp. (N) 31,300 1,186 Kraft Foods, Inc. Class A 188,320 6,576 Kroger Co. (The) 1,731,649 44,330 McCormick & Co., Inc. 124,500 4,861 Molson Coors Brewing Co. Class B 19,000 1,535 Pepsi Bottling Group, Inc. 48,400 1,531 PepsiCo, Inc. (U) 850,100 55,461 Procter & Gamble Co. (U) 431,293 27,978 Reynolds American, Inc. (N) 190,864 12,311 Safeway, Inc. (N) 605,270 21,808 Supervalu, Inc. 169,900 6,453 Tyson Foods, Inc. Class A 489,600 8,690 UST, Inc. 167,590 9,626 Walgreen Co. 151,600 6,868 ------------ 266,745 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Financial Services - 22.9% Aflac, Inc. 224,300 10,679 Alliance Data Systems Corp. (AE) 59,300 4,028 Allstate Corp. (The) 277,800 16,712 AMBAC Financial Group, Inc. 97,194 8,563 American Home Mortgage Investment Corp. (o) 25,700 898 American International Group, Inc. (U) 215,390 14,743 AmeriCredit Corp. (AE)(N) 195,340 5,302 Ameriprise Financial, Inc. 190,920 11,257 Annaly Capital Management, Inc. (o) 120,100 1,655 Arthur J Gallagher & Co. 21,900 628 Automatic Data Processing, Inc. (U) 191,600 9,143 Bank of America Corp. (U) 1,670,652 87,843 BB&T Corp. 4,100 173 Bear Stearns Cos., Inc. (The) (U) 60,200 9,924 BlackRock, Inc. Class A 1,100 185 Brown & Brown, Inc. 29,300 830 CapitalSource, Inc. (o)(N) 111,900 3,110 Cash America International, Inc. 11,400 487 CB Richard Ellis Group, Inc. Class A (AE) 64,200 2,415 Chubb Corp. 31,900 1,660 Cigna Corp. 11,290 1,495 Cincinnati Financial Corp. 76,527 3,424 CIT Group, Inc. 147,700 8,708 Citigroup, Inc. (U) 1,171,190 64,568 Colonial Properties Trust (o) 18,000 885 Comerica, Inc. 121,300 7,193 Commerce Group, Inc. 3,200 97 Corus Bankshares, Inc. 75,800 1,615 Countrywide Financial Corp. 913,178 39,705 Duke Realty Corp. (o) 33,400 1,474 Equity Lifestyle Properties, Inc. (o) 3,300 182 Equity Office Properties Trust (o) 173,510 9,638 Factset Research Systems, Inc. 12,200 709 Fannie Mae (U) 80,200 4,534 FelCor Lodging Trust, Inc. (o) 23,800 525 First American Corp. 39,100 1,657 First Marblehead Corp. (The) (N) 207,900 11,310 Fiserv, Inc. (AE) 285,900 15,030 Genworth Financial, Inc. Class A 157,770 5,506 Global Payments, Inc. 80,500 3,040 Goldman Sachs Group, Inc. (U) 317,600 67,382 HCC Insurance Holdings, Inc. 112,900 3,526
20 Quantitative Equity Fund RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Health Care Property Investors, Inc. (o) 49,000 2,021 Health Care REIT, Inc. (o) 22,200 1,039 Hospitality Properties Trust (o) 65,500 3,196 Host Hotels & Resorts, Inc. (o) 357,100 9,452 HRPT Properties Trust (o) 185,930 2,421 Hudson City Bancorp, Inc. 128,760 1,773 Huntington Bancshares, Inc. 100,600 2,342 IndyMac Bancorp, Inc. (N) 37,700 1,466 Investment Technology Group, Inc. (AE) 29,900 1,304 iStar Financial, Inc. (o) 7,600 381 Jones Lang LaSalle, Inc. 26,430 2,762 JPMorgan Chase & Co. (U) 1,467,866 74,758 KeyCorp 285,900 10,913 Kimco Realty Corp. (o) 56,270 2,791 KKR Financial Corp. (o) 20,700 560 Knight Capital Group, Inc. Class A (AE) 12,000 217 Lehman Brothers Holdings, Inc. (U) 636,600 52,354 Lincoln National Corp. (U) 102,700 6,895 Loews Corp. 258,540 11,236 MBIA, Inc. 129,623 9,311 Mellon Financial Corp. 76,100 3,253 Merrill Lynch & Co., Inc. 289,200 27,058 Metlife, Inc. (U) 126,500 7,858 MoneyGram International, Inc. 55,100 1,652 Moody's Corp. (U) 110,640 7,917 Morgan Stanley (U) 733,580 60,733 National City Corp. (N) 709,900 26,870 National Retail Properties, Inc. (o) 20,500 487 Nationwide Financial Services, Inc. 36,170 1,977 Nationwide Health Properties, Inc. (o) 38,600 1,286 Nelnet, Inc. Class A (AE) 18,000 498 New Century Financial Corp. (o) 38,600 1,168 New Plan Excel Realty Trust (o) 36,700 1,069 Newcastle Investment Corp. (o) 11,665 378 Odyssey Re Holdings Corp. 14,700 580 Old Republic International Corp. 85,700 1,911 Pennsylvania Real Estate Investment Trust (o) 13,500 576 Philadelphia Consolidated Holding Co. (AE) 13,500 608 PMI Group, Inc. (The) 93,610 4,476 PNC Financial Services Group, Inc. (U) 92,900 6,853 Principal Financial Group, Inc. 75,500 4,652 Progressive Corp. (The) 212,200 4,921 ProLogis (o) 1 -- Protective Life Corp. 20,800 1,018 Prudential Financial, Inc (U) 100,500 8,958 Public Storage, Inc. (o) 9,500 1,033 Radian Group, Inc. 98,500 5,932 Raymond James Financial, Inc. 23,400 747
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Rayonier, Inc. (o) 31,700 1,369 Redwood Trust, Inc. (o) 10,600 674 Regions Financial Corp. (U) 504,053 18,277 RLI Corp. 6,300 349 Ryder System, Inc. 45,700 2,492 Safeco Corp. (N) 174,400 11,163 SL Green Realty Corp. (o) 27,250 3,994 Spirit Finance Corp. (o) 35,900 449 St. Paul Travelers Cos., Inc. (The) 267,095 13,582 Stancorp Financial Group, Inc. 19,000 909 State Street Corp. (U) 112,100 7,965 Synovus Financial Corp. 20,800 664 T Rowe Price Group, Inc. 19,590 940 TCF Financial Corp. 43,700 1,109 Thornburg Mortgage, Inc. (o) 62,900 1,692 Unitrin, Inc. 6,600 338 US Bancorp (U) 625,030 22,251 Ventas, Inc. (o) 9,100 421 Wachovia Corp. (U) 357,301 20,187 Washington Mutual, Inc. (N)(U) 144,100 6,425 Weingarten Realty Investors (o) 2,400 119 Wells Fargo & Co. (U) 1,070,720 38,460 Whitney Holding Corp. 11,300 358 Wilmington Trust Corp. 14,500 608 WR Berkley Corp. 209,965 6,948 Zenith National Insurance Corp. 13,900 635 ------------ 986,477 ------------ Health Care - 13.1% Abbott Laboratories (U) 233,100 12,354 Aetna, Inc. (U) 442,568 18,659 AMERIGROUP Corp. (AE) 16,900 613 AmerisourceBergen Corp. Class A 853,390 44,701 Amgen, Inc. (AE)(U) 870,090 61,228 Beckman Coulter, Inc. 30,200 1,949 Becton Dickinson & Co. 69,800 5,370 Biogen Idec, Inc. (AE) 163,700 7,913 Bristol-Myers Squibb Co. (U) 70,000 2,015 Brookdale Senior Living, Inc. 9,100 437 Cardinal Health, Inc. (U) 290,000 20,712 Caremark Rx, Inc. 240,879 14,756 Celgene Corp. (AE) 192,300 10,323 Centene Corp. (AE) 2,500 62 Cephalon, Inc. (AE) 35,287 2,555 CR Bard, Inc. 28,600 2,360 Cytyc Corp. (AE) 42,300 1,223 Dade Behring Holdings, Inc. 51,300 2,159 Dentsply International, Inc. 71,400 2,202
Quantitative Equity Fund 21 RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Edwards Lifesciences Corp. (AE) 27,818 1,423 Emdeon Corp. (AE) 105,500 1,504 Express Scripts, Inc. Class A (AE) 38,600 2,683 Forest Laboratories, Inc. (AE) 249,770 14,015 Genentech, Inc. (AE) 7,300 638 Gilead Sciences, Inc. (AE) 24,800 1,595 Health Management Associates, Inc. Class A 85,728 1,667 Health Net, Inc. (AE) 119,300 5,811 Healthspring, Inc. (AE) 23,900 470 Humana, Inc. (AE) 130,700 7,254 Idexx Laboratories, Inc. (AE) 8,200 704 IMS Health, Inc. 87,600 2,528 Johnson & Johnson (U) 1,466,800 97,982 King Pharmaceuticals, Inc. (AE) 147,000 2,625 Laboratory Corp. of America Holdings (AE)(N) 83,000 6,096 LifePoint Hospitals, Inc. (AE) 35,300 1,200 Manor Care, Inc. 29,900 1,592 McKesson Corp. 517,300 28,839 Medco Health Solutions, Inc. (AE) 63,100 3,736 Medicines Co. (The) (AE) 28,100 860 Medtronic, Inc. 50,900 2,721 Merck & Co., Inc. (U) 585,700 26,210 Millennium Pharmaceuticals, Inc. (AE) 340,200 3,776 Mylan Laboratories, Inc. 144,700 3,204 Nektar Therapeutics (AE) 35,900 456 Pfizer, Inc. 3,300,830 86,614 Quest Diagnostics, Inc. 127,400 6,686 Schering-Plough Corp. (U) 408,500 10,213 Thermo Fisher Scientific, Inc. (AE) 122,700 5,871 Universal Health Services, Inc. Class B 29,200 1,692 Vertex Pharmaceuticals, Inc. (AE) 14,700 520 WellCare Health Plans, Inc. (AE) 20,500 1,588 WellPoint, Inc. (AE)(U) 193,300 15,151 Zimmer Holdings, Inc. (AE)(U) 57,340 4,829 ------------ 564,344 ------------ Integrated Oils - 6.1% Chevron Corp. 401,820 29,285 ConocoPhillips (U) 471,410 31,306 Exxon Mobil Corp. (U) 1,891,158 140,135 Hess Corp. 190,800 10,301 Marathon Oil Corp. 464,470 41,960 Occidental Petroleum Corp. (U) 195,600 9,068 ------------ 262,055 ------------ Materials and Processing - 5.0% Acuity Brands, Inc. 25,800 1,497 Alcoa, Inc. (N) 395,700 12,781 Archer-Daniels-Midland Co. (U) 199,200 6,374 Ashland, Inc. 134,050 9,323
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Bemis Co. 53,900 1,828 Celanese Corp. Class A 76,200 2,000 Chaparral Steel Co. 31,000 1,590 Corn Products International, Inc. 26,280 900 Crown Holdings, Inc. (AE) 6,250 138 Cytec Industries, Inc. 10,100 588 Dow Chemical Co. (The) (U) 347,700 14,444 Eagle Materials, Inc. (N) 106,200 5,245 Eastman Chemical Co. 51,900 3,039 EI Du Pont de Nemours & Co. (U) 107,400 5,323 EMCOR Group, Inc. (AE) 17,060 980 Energizer Holdings, Inc. (AE) 98,570 8,401 Fluor Corp. 56,800 4,692 FMC Corp. 16,000 1,246 Freeport-McMoRan Copper & Gold, Inc. Class B (N) 343,200 19,737 Granite Construction, Inc. 9,490 508 Greif, Inc. Class A 3,300 377 HB Fuller Co. 5,500 142 Hercules, Inc. (AE) 47,400 930 Huntsman Corp. (AE) 62,200 1,301 Jacobs Engineering Group, Inc. (AE) 37,800 3,423 Louisiana-Pacific Corp. 70,400 1,613 Masco Corp. 117,400 3,756 Mueller Industries, Inc. 23,200 756 Newmont Mining Corp. 5,800 262 Nucor Corp. 627,284 40,485 Olin Corp. 61,900 1,042 OM Group, Inc. (AE) 6,200 303 Packaging Corp. of America 46,377 1,059 Pactiv Corp. (AE) 151,800 4,924 PPG Industries, Inc. 70,800 4,693 Quanex Corp. 21,500 843 Reliance Steel & Aluminum Co. 74,000 3,081 Rohm & Haas Co. 161,900 8,429 RPM International, Inc. 31,100 722 Sherwin-Williams Co. (The) 148,400 10,254 Southern Copper Corp. 73,300 4,581 Steel Dynamics, Inc. (N) 286,800 11,245 Texas Industries, Inc. (U) 25,400 1,865 Timken Co. 42,100 1,205 United States Steel Corp. 32,500 2,713 URS Corp. (AE) 29,200 1,255
22 Quantitative Equity Fund RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- USG Corp. (AE) 88,700 4,754 Westlake Chemical Corp. 19,900 660 ------------ 217,307 ------------ Miscellaneous - 2.3% Brunswick Corp. 29,600 1,010 Eaton Corp. 44,800 3,510 General Electric Co. (U) 1,405,340 50,662 Hillenbrand Industries, Inc. 21,900 1,248 Honeywell International, Inc. (U) 280,600 12,821 ITT Corp. 83,300 4,969 Johnson Controls, Inc. 84,100 7,776 SPX Corp. 76,330 5,358 Textron, Inc. 41,000 3,820 Trinity Industries, Inc. 46,100 1,763 Tyco International, Ltd. 190,370 6,069 ------------ 99,006 ------------ Other Energy - 2.9% Alon USA Energy, Inc. 27,800 748 Anadarko Petroleum Corp. (U) 104,960 4,592 Apache Corp. (U) 43,800 3,196 Cameron International Corp. (AE) 48,300 2,536 Chesapeake Energy Corp. 147,200 4,359 Cimarex Energy Co. 21,000 787 Complete Production Services, Inc. (AE) 19,300 383 Devon Energy Corp. (U) 275,300 19,296 Dynegy, Inc. Class A (AE) 4,230 30 Frontier Oil Corp. 52,800 1,500 Global Industries, Ltd. (AE) 64,900 874 GlobalSantaFe Corp. 15,400 893 Grey Wolf, Inc. (AE) 52,800 361 Helix Energy Solutions Group, Inc. (AE) 47,100 1,515 Helmerich & Payne, Inc. 130,200 3,493 Holly Corp. 100,900 5,316 Newfield Exploration Co. (AE) 130,400 5,582 NRG Energy, Inc. (AE) 72,200 4,327 Oceaneering International, Inc. (AE) 69,100 2,727 Oil States International, Inc. (AE) 48,400 1,395 Patterson-UTI Energy, Inc. 64,675 1,562 Rowan Cos., Inc. 59,200 1,947 SEACOR Holdings, Inc. (AE) 41,300 4,181 St. Mary Land & Exploration Co. 30,500 1,098 Stone Energy Corp. (AE) 10,200 346 Sunoco, Inc. 89,900 5,675 Superior Energy Services, Inc. (AE) 54,800 1,662 Tesoro Corp. 30,100 2,480 Tetra Technologies, Inc. (AE) 63,900 1,480 Todco Class A (AE) 14,400 499 Unit Corp. (AE) 30,800 1,493 Valero Energy Corp. (U) 250,700 13,608
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- W&T Offshore, Inc. 21,300 654 Western Refining, Inc. 46,600 1,275 Whiting Petroleum Corp. (AE) 12,000 547 XTO Energy, Inc. 462,600 23,347 ------------ 125,764 ------------ Producer Durables - 6.6% AGCO Corp. (AE) 152,540 5,182 Andrew Corp. (AE) 52,100 553 Applied Industrial Technologies, Inc. (U) 31,700 777 Applied Materials, Inc. 539,200 9,560 Boeing Co. 41,700 3,735 Caterpillar, Inc. 252,000 16,146 Crane Co. 23,700 920 Cummins, Inc. 18,500 2,489 Danaher Corp. (U) 129,400 9,583 Deere & Co. 11,400 1,143 Emerson Electric Co. 166,800 7,501 Esterline Technologies Corp. (AE) 2,700 108 Gardner Denver, Inc. (AE) 45,400 1,750 Genlyte Group, Inc. (AE) 9,600 727 Goodrich Corp. 57,897 2,838 KB Home 29,500 1,600 Lam Research Corp. (AE) 289,200 13,248 Lennar Corp. Class A 48,300 2,627 Lexmark International, Inc. Class A (AE)(N) 174,190 10,979 Lockheed Martin Corp. (U) 648,590 63,037 Manitowoc Co., Inc. (The) 60,600 3,143 MDC Holdings, Inc. 18,100 1,055 Mettler Toledo International, Inc. (AE) 19,800 1,639 MKS Instruments, Inc. (AE) 18,200 398 Molex, Inc. 85,200 2,504 Nordson Corp. 5,100 264 Northrop Grumman Corp. 712,325 50,532 Novellus Systems, Inc. (AE)(N) 110,200 3,398 NVR, Inc. (AE) 2,300 1,593 Parker Hannifin Corp. 140,100 11,595 Plantronics, Inc. 11,400 225 Polycom, Inc. (AE) 188,800 6,347 Pulte Homes, Inc. 188,200 6,463 Standard-Pacific Corp. 82,700 2,269 Steelcase, Inc. Class A 37,200 729 Technitrol, Inc. 14,000 308 Teradyne, Inc. (AE) 105,400 1,570 Terex Corp. (AE) 16,900 961 Toll Brothers, Inc. (AE) 63,600 2,152
Quantitative Equity Fund 23 RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- United Technologies Corp. 314,450 21,389 Waters Corp. (AE) 91,740 5,201 Xerox Corp. (AE) 266,300 4,580 ------------ 282,818 ------------ Technology - 11.5% 3Com Corp. (AE) 132,600 517 Agere Systems, Inc. Class A (AE) 5,500 111 Altera Corp. (AE) 124,300 2,492 Amphenol Corp. Class A 2,300 156 Anixter International, Inc. (AE) 28,000 1,548 Applera Corp. - Applied Biosystems Group 171,299 5,954 Applied Micro Circuits Corp. (AE) 229,500 789 Arrow Electronics, Inc. (AE) 66,200 2,334 Atmel Corp. (AE) 1,905,610 11,396 Avaya, Inc. (AE) 132,800 1,704 Avnet, Inc. (AE) 71,300 2,214 AVX Corp. (N) 109,100 1,576 BEA Systems, Inc. (AE) 444,300 5,478 Benchmark Electronics, Inc. (AE) 27,500 623 Blackbaud, Inc. 18,000 431 BMC Software, Inc. (AE) 136,300 4,687 Brocade Communications Systems, Inc. (AE) 181,100 1,554 CACI International, Inc. Class A (AE) 10,800 508 Cadence Design Systems, Inc. (AE) 104,300 1,971 Ciena Corp. (AE) 112,014 3,146 Cisco Systems, Inc. (AE) 2,908,680 77,342 Coherent, Inc. (AE) 2,900 89 Computer Sciences Corp. (AE) 292,929 15,367 CSG Systems International, Inc. (AE) 17,900 449 Cypress Semiconductor Corp. (AE) 41,800 771 DRS Technologies, Inc. 16,800 931 F5 Networks, Inc. (AE) 36,000 2,572 Fairchild Semiconductor International, Inc. Class A (AE) 70,800 1,261 Harris Corp. 47,700 2,424 Hewlett-Packard Co. (U) 1,587,850 68,722 Hyperion Solutions Corp. (AE) 11,100 469 Ingram Micro, Inc. Class A (AE) 134,600 2,626 Integrated Device Technology, Inc. (AE) 184,400 2,790 Intel Corp. 176,100 3,691 International Business Machines Corp. (U) 467,470 46,350 International Rectifier Corp. (AE) 31,500 1,314 Intersil Corp. Class A 51,900 1,223 Intuit, Inc. (AE) 368,149 11,578 Jabil Circuit, Inc. 123,200 2,956 LSI Logic Corp. (AE)(N) 226,100 2,125 McAfee, Inc. (AE) 80,400 2,353 MEMC Electronic Materials, Inc. (AE) 54,800 2,872
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Mentor Graphics Corp. (AE) 151,050 2,810 Micron Technology, Inc. (AE) 899,110 11,643 Microsoft Corp. (U) 1,942,410 59,943 National Semiconductor Corp. 96,400 2,230 NCR Corp. (AE) 23,100 1,095 Network Appliance, Inc. (AE) 146,700 5,516 Nvidia Corp. (AE) 78,300 2,400 Oracle Corp. (AE) 1,326,800 22,768 Perot Systems Corp. Class A (AE) 14,100 230 QLogic Corp. (AE) 95,900 1,755 Qualcomm, Inc. 216,300 8,146 Raytheon Co. (U) 452,020 23,460 RealNetworks, Inc. (AE) 95,600 1,020 Sanmina-SCI Corp. (AE) 242,100 847 Seagate Technology, Inc. (AE) 67,668 -- Solectron Corp. (AE) 204,100 663 Spansion, Inc. Class A (AE) 20,400 262 Sun Microsystems, Inc. (AE) 864,250 5,739 Sybase, Inc. (AE) 25,000 647 Symantec Corp. (AE) 271,300 4,805 Synopsys, Inc. (AE) 310,581 8,261 Tellabs, Inc. (AE) 176,000 1,772 Texas Instruments, Inc. (N) 258,600 8,066 TIBCO Software, Inc. (AE) 14,900 138 Unisys Corp. (AE) 112,900 973 Utstarcom, Inc. (AE) 197,200 1,741 VeriSign, Inc. (AE) 75,500 1,804 Vishay Intertechnology, Inc. (AE) 98,000 1,288 Websense, Inc. (AE) 6,100 132 Western Digital Corp. (AE) 203,500 3,989 Xilinx, Inc. 447,200 10,867 ------------ 494,474 ------------ Utilities - 6.4% AGL Resources, Inc. 14,200 558 Alltel Corp. 72,000 4,413 American Electric Power Co., Inc. 25,500 1,110 AT&T, Inc. (U) 1,538,049 57,877 Atmos Energy Corp. 28,900 903 CenturyTel, Inc. 194,610 8,726 Comcast Corp. Class A (AE) 686,640 30,432 Constellation Energy Group, Inc. 56,800 4,121 Duke Energy Corp. 561,600 11,058 Edison International 286,941 12,907 Embarq Corp. 68,900 3,825 Energy East Corp. (N) 48,600 1,167 Entergy Corp. 37,900 3,519 FirstEnergy Corp. 125,600 7,452 Golden Telecom, Inc. 2,800 145
24 Quantitative Equity Fund RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- KeySpan Corp. 89,800 3,664 New Jersey Resources Corp. 14,000 652 Oneok, Inc. 29,200 1,253 Pepco Holdings, Inc. 38,600 987 PG&E Corp. 851,240 39,736 PPL Corp. 86,800 3,090 Qwest Communications International, Inc. (AE)(N) 1,125,100 9,169 Sprint Nextel Corp. 178,790 3,188 TXU Corp. 809,169 43,760 Verizon Communications, Inc. (U) 483,276 18,616 Windstream Corp. Class W (AE) 239,800 3,567 ------------ 275,895 ------------ TOTAL COMMON STOCKS (cost $3,591,954) 4,262,778 ------------ SHORT-TERM INVESTMENTS - 5.1% Russell Investment Company Money Market Fund 211,013,000 211,013 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 10,000 9,944 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $220,957) 220,957 ------------ OTHER SECURITIES - 2.1% Russell Investment Company Money Market Fund (X) 22,622,645 22,623 State Street Securities Lending Quality Trust (X) 68,974,873 68,975 ------------ TOTAL OTHER SECURITIES (cost $91,638) 91,598 ------------ TOTAL INVESTMENTS - 106.0% (identified cost $3,904,549) 4,575,333 ------------ SECURITIES SOLD SHORT - (4.2%) Auto and Transportation - (0.2%) Airtran Holdings, Inc. (AE) (57,400) (636) AMR Corp. (AE) (92,600) (3,431) Florida East Coast Industries, Inc. (6,300) (382) Thor Industries, Inc. (30,100) (1,272) Visteon Corp. (AE) (69,300) (554) ------------ (6,275) ------------ Consumer Discretionary - (0.9%) Apollo Group, Inc. Class A (AE) (52,200) (2,266) Big Lots, Inc. (13,800) (358) Blockbuster, Inc. Class A (AE) (104,300) (677) Chico's FAS, Inc. (AE) (43,200) (902) Continental Airlines, Inc. (29,800) (1,236)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Discovery Holding Co. Class A (AE) (257,470) (4,266) Fastenal Co. (89,800) (3,348) Hewitt Associates, Inc. Class A (AE) (81,100) (2,185) Interpublic Group of Cos., Inc. (AE) (189,000) (2,487) Las Vegas Sands Corp. (AE) (54,400) (5,661) Regal Entertainment Group Class A (131,394) (2,956) Saks, Inc. (60,700) (1,139) Service Corp. International (173,500) (1,848) Take-Two Interactive Software, Inc. (AE) (30,600) (532) Triarc Cos., Inc. Class A (70,900) (1,386) Under Armour, Inc. Class A (AE) (6,700) (340) United Natural Foods, Inc. (AE) (8,500) (281) World Fuel Services Corp. (14,200) (651) Wynn Resorts, Ltd. (21,000) (2,347) Yahoo!, Inc. (AE) (184,800) (5,232) ------------ (40,098) ------------ Consumer Staples - (0.2%) Hansen Natural Corp. (AE) (20,600) (785) Hershey Co. (The) (22,400) (1,143) Rite Aid Corp. (AE) (368,900) (2,272) Tyson Foods, Inc. (180,900) (3,211) ------------ (7,411) ------------ Financial Services - (0.9%) American Financial Realty Trust (o) (62,435) (698) BlackRock, Inc. Class A (23,200) (3,892) Capitol Federal Financial (12,428) (485) Chicago Mercantile Exchange Holdings, Inc. Class A (8,200) (4,619) Eaton Vance Corp. (139,400) (4,781) First Data Corp. (103,900) (2,583) Friedman Billings Ramsey Group, Inc. Class A (o) (160,896) (1,265) GATX Corp. (18,200) (830) General Growth Properties, Inc. (o) (42,400) (2,609) Greenhill & Co., Inc. (23,800) (1,783) H&R Block, Inc. (147,600) (3,631) IntercontinentalExchange, Inc. New (AE) (19,600) (2,559) Investors Financial Services Corp. (13,000) (608) LandAmerica Financial Group, Inc. Class A (42,600) (2,686) MBIA, Inc. (45,900) (3,297) Piper Jaffray Cos., Inc. (AE) (15,700) (1,082) Potlatch Corp. (o) (2,000) (95)
Quantitative Equity Fund 25 RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- SEI Investments Co. (44,800) (2,792) UnumProvident Corp. (1,600) (35) Vornado Realty Trust (o) (4,100) (502) ------------ (40,832) ------------ Health Care - (0.4%) Abraxis BioScience, Inc. (AE) (39,800) (1,040) Adams Respiratory Therapeutics, Inc. (AE) (19,400) (870) Affymetrix, Inc. (AE) (27,000) (674) Allergan, Inc. (37,000) (4,318) Bausch & Lomb, Inc. (37,100) (2,066) Celgene Corp. (77,700) (4,171) Genentech, Inc. (AE) (28,300) (2,473) Healthsouth Corp. (AE) (9,900) (232) Intuitive Surgical, Inc. (AE) (10,200) (1,004) Inverness Medical Innovations, Inc. (AE) (9,600) (396) Techne Corp. (AE) (8,900) (516) Tenet Healthcare Corp. (AE) (92,500) (653) United Therapeutics Corp. (AE) (4,300) (230) ------------ (18,643) ------------ Integrated Oils - (0.0%) Delta Petroleum Corp. (AE) (33,200) (729) ------------ Materials and Processing - (0.4%) Ashland, Inc. (64,700) (4,500) Energy Conversion Devices, Inc. (AE) (9,600) (331) Georgia Gulf Corp. (37,700) (784) Hexcel Corp. (AE) (41,200) (793) Lone Star Technologies, Inc. (AE) (5,600) (271) Mosaic Co. (The) (AE) (100,800) (2,008) Owens-Illinois, Inc. (AE) (48,500) (1,080) Quanta Services, Inc. (AE) (54,000) (1,111) Shaw Group, Inc. (The) (AE) (58,600) (1,978) Terra Industries, Inc. (AE) (33,900) (482) UAP Holding Corp. (50,700) (1,270) Worthington Industries, Inc. (58,600) (1,124) ------------ (15,732) ------------ Miscellaneous - (0.0%) Walter Industries, Inc. (39,700) (1,119) ------------ Other Energy - (0.5%) Cabot Oil & Gas Corp. (17,100) (1,109) CNX Gas Corp. (AE) (9,800) (251) Consol Energy, Inc. (63,600) (2,190) Crosstex Energy, Inc. (58,800) (1,927) El Paso Corp. (202,007) (3,135) Equitable Resources, Inc. (102,400) (4,429)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- EXCO Resources, Inc. (AE) (12,500) (210) Massey Energy Co. (74,700) (1,770) Pogo Producing Co. (49,800) (2,467) Reliant Energy, Inc. (AE) (127,800) (1,902) Southwestern Energy Co. (AE) (48,500) (1,865) ------------ (21,255) ------------ Producer Durables - (0.1%) ACCO Brands Corp. (AE) (27,900) (673) Bucyrus International, Inc. Class A (11,200) (520) Pitney Bowes, Inc. (88,500) (4,237) ------------ (5,430) ------------ Technology - (0.3%) Akamai Technologies, Inc. (AE) (47,100) (2,646) Apple, Inc. (AE) (23,100) (1,980) Autodesk, Inc. (AE) (73,500) (3,214) Maxim Integrated Products, Inc. (85,400) (2,630) NAVTEQ Corp. (AE) (44,400) (1,574) Transaction Systems Architects, Inc. (AE) (10,500) (380) ------------ (12,424) ------------ Utilities - (0.3%) Aquila, Inc. (AE) (213,000) (965) CenturyTel, Inc. (75,100) (3,367) Level 3 Communications, Inc. (AE) (447,400) (2,778) National Fuel Gas Co. (22,600) (920) Southern Union Co. (44,300) (1,232) Telephone & Data Systems, Inc. (54,700) (3,060) ------------ (12,322) ------------ TOTAL SECURITIES SOLD SHORT (proceeds $168,665) (182,270) OTHER ASSETS AND LIABILITIES, NET - (1.8%) (76,197) ------------ NET ASSETS - 100.0% 4,316,866 ============
See accompanying notes which are an integral part of the schedules of investments. 26 Quantitative Equity Fund RUSSELL INVESTMENT COMPANY QUANTITATIVE EQUITY FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Russell 1000 Index expiration date 03/07 (97) 19,284 236 S&P 500 E-Mini Index (CME) expiration date 03/07 (175) 12,626 124 S&P 500 Index (CME) expiration date 03/07 (305) 110,029 1,260 S&P Midcap 400 E-Mini Index (CME) expiration date 03/07 (929) 77,748 1,280 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 2,900 ===============
See accompanying notes which are an integral part of the schedules of investments. Quantitative Equity Fund 27 RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 90.6% Australia - 3.7% AGL Energy, Ltd. (AE)(N) 19,947 268 Alinta, Ltd. (N) 6,685 73 Amcor, Ltd. (N) 1,427,502 8,092 AMP, Ltd. 64,126 521 Ansell, Ltd. 12,957 113 Aristocrat Leisure, Ltd. (N) 165,995 2,077 Australia & New Zealand Banking Group, Ltd. 87,066 1,968 AXA Asia Pacific Holdings, Ltd. 73,599 413 BHP Billiton, Ltd. (N) 131,816 2,665 BlueScope Steel, Ltd. (N) 71,400 478 Brambles, Ltd. (AE) 193,803 2,089 Caltex Australia, Ltd. (N) 14,772 249 Centro Properties Group 37,200 261 Coca-Cola Amatil, Ltd. 237,706 1,445 Coles Group, Ltd. 732,468 8,094 Commonwealth Bank of Australia 49,257 1,914 CSL, Ltd. 144,894 7,812 David Jones, Ltd. (N) 110,000 386 DB RREEF Trust (N) 101,321 139 Downer EDI, Ltd. 24,575 126 Foster's Group, Ltd. 2,092,875 11,003 Goodman Fielder, Ltd. (N) 84,921 157 GPT Group (N) 74,482 316 Harvey Norman Holdings, Ltd. (N) 64,612 205 Insurance Australia Group, Ltd. (N) 317,988 1,598 Investa Property Group (N) 64,403 123 Leighton Holdings, Ltd. (N) 13,618 233 Lend Lease Corp., Ltd. 18,316 270 Macquarie Airports Management, Ltd. (N) 912,800 2,516 Macquarie Bank, Ltd. (N) 183,246 11,525 Macquarie Goodman Group (N) 61,243 350 Macquarie Infrastructure Group 60,585 172 Minara Resources, Ltd. (N) 13,202 64 Mirvac Group 23,409 102 National Australia Bank, Ltd. (N) 1,070,085 33,588 Newcrest Mining, Ltd. 11,135 181 OneSteel, Ltd. (N) 125,899 462 Pacific Brands, Ltd. 219,981 473 PaperlinX, Ltd. (N) 39,585 109 Promina Group, Ltd. (N) 619,300 3,487 Qantas Airways, Ltd. 123,584 517 QBE Insurance Group, Ltd. (N) 300,721 7,193 Rinker Group, Ltd. 24,881 359 Rio Tinto, Ltd. (N) 2,688 160 Sims Group, Ltd. (N) 18,290 307 Smorgon Steel Group, Ltd. (N) 76,295 109 Sons of Gwalia, Ltd. (AE)(N)(B) 34,800 -- Stockland (N) 59,414 392 Suncorp-Metway, Ltd. (N) 51,570 865
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Symbion Health, Ltd. (N) 56,142 180 TABCORP Holdings, Ltd. (N) 244,492 3,315 Telstra Corp., Ltd. (N) 3,032,910 9,986 Telstra Corp., Ltd. (AE) 296,159 644 Telstra Corp., Ltd. (AE)(N) 12,058 26 Toll Holdings, Ltd. (N) 138,204 2,248 Wesfarmers, Ltd. 151,727 4,495 Westfield Group (N) 45,576 790 Westpac Banking Corp. (N) 77,268 1,504 Woodside Petroleum, Ltd. 854 25 Woolworths, Ltd. 174,116 3,211 Zinifex, Ltd. 41,915 534 ------------ 142,977 ------------ Austria - 1.0% Erste Bank der Oesterreichischen Sparkassen AG (N) 382,220 29,735 Immofinanz Immobilien Anlagen AG (AE) 66,400 1,008 OMV AG 50,900 2,725 Raiffeisen International Bank Holding AG 23,500 3,588 Voestalpine AG 49,200 2,847 ------------ 39,903 ------------ Belgium - 0.9% Belgacom SA (N) 70,515 3,193 Delhaize Group 11,896 988 Dexia 12,961 385 Fortis 515,815 21,665 KBC Groep NV 54,002 6,810 UCB SA 27,506 1,823 ------------ 34,864 ------------ Bermuda - 0.8% CNPC Hong Kong, Ltd. 610,000 305 Cofco International, Ltd. 154,000 162 Esprit Holdings, Ltd. 1,270,000 12,875 Great Eagle Holdings, Ltd. 77,000 252 Guoco Group, Ltd. 11,000 142 Jardine Matheson Holdings, Ltd. 168,500 3,960 Li & Fung, Ltd. 2,306,800 7,194 Orient Overseas International, Ltd. 49,000 327 People's Food Holdings, Ltd. 96,000 78 Shangri-La Asia, Ltd. 1,596,000 4,283 Vostok Nafta Investment, Ltd. (AE)(N) 23,825 1,551 ------------ 31,129 ------------
28 International Securities Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Brazil - 0.5% Cia Vale do Rio Doce - ADR 26,600 902 Gafisa SA (AE) 161,519 2,357 Gerdau SA - ADR (N) 97,200 1,643 Petroleo Brasileiro SA - ADR 14,670 1,442 Tele Norte Leste Participacoes SA - ADR (N) 141,740 1,912 Unibanco - Uniao de Bancos Brasileiros SA - ADR 104,745 9,933 ------------ 18,189 ------------ Canada - 1.4% Cameco Corp. 53,900 2,055 Canadian Imperial Bank of Commerce 36,700 3,146 Canadian National Railway Co. 173,092 7,908 EnCana Corp. 25,400 1,218 Gerdau Ameristeel Corp. 211,000 2,134 ING Canada, Inc. 38,067 1,713 IPSCO, Inc. 32,300 3,266 Nexen, Inc. 43,576 2,631 Potash Corp. of Saskatchewan 24,900 3,885 Research In Motion, Ltd. (AE) 67,100 8,574 Rogers Communications, Inc. Class B 257,700 7,971 Shoppers Drug Mart Corp. 89,299 3,817 SNC-Lavalin Group, Inc. 121,800 3,580 Teck Cominco, Ltd. Class B (N) 51,200 3,781 ------------ 55,679 ------------ Cayman Islands - 0.3% Chaoda Modern Agriculture 112,000 79 Ctrip.com International, Ltd. - ADR (N) 50,900 3,620 Focus Media Holding, Ltd. - ADR (AE) 38,500 3,182 Foxconn International Holdings, Ltd. (AE) 532,000 1,591 Hutchison Telecommunications International, Ltd. (AE) 348,000 838 Melco PBL Entertainment Macau, Ltd. - ADR (AE)(N) 200,206 3,872 ------------ 13,182 ------------ China - 0.4% China Construction Bank Class H (N) 1,381,000 814 China Life Insurance Co., Ltd. Class H (N) 2,203,000 6,433 China Petroleum & Chemical Corp. Class H 1,278,000 1,069 China Telecom Corp., Ltd. Class H 1,480,000 715 Industrial & Commercial Bank of China (AE)(N) 9,641,000 5,594 PetroChina Co., Ltd. Class H (N) 866,000 1,061
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Ping An Insurance Group Co. of China, Ltd. Class H (N) 170,500 823 ------------ 16,509 ------------ Denmark - 0.4% Carlsberg A/S Class B 16,150 1,637 FLSmidth & Co. A/S 24,150 1,583 Genmab A/S (AE) 8,650 548 Norvo-Nordisk A/S Class B 24,850 2,141 Topdanmark A/S (AE) 1,590 287 Vestas Wind Systems A/S (AE) 194,000 8,563 ------------ 14,759 ------------ Finland - 0.6% Cargotec Corp. Class B 21,905 1,298 Kesko OYJ Class B 9,290 495 M-real OYJ Class B (N) 139,170 947 Nokia OYJ 264,305 5,784 Nokia OYJ - ADR 38,490 851 Orion OYJ Class B (AE)(N) 30,883 700 Rautaruukki OYJ 50,016 1,972 UPM-Kymmene OYJ (N) 353,681 9,058 ------------ 21,105 ------------ France - 12.4% Accor SA 122,269 10,135 Air France-KLM 81,918 3,686 Air Liquide SA (N) 53,916 12,557 Alstom RGPT (AE)(N) 145,684 17,791 Arkema (AE)(N) 22,934 1,153 AXA SA (N) 694,197 29,261 BNP Paribas (N) 256,016 28,546 Capital Gemini SA (N) 31,142 1,977 Carrefour SA (N) 180,650 10,407 Casino Guichard Perrachon SA (N) 6,793 590 Christian Dior SA 10,152 1,107 Cie de Saint-Gobain (N) 141,551 13,357 Cie Generale d'Optique Essilor International SA (N) 16,589 1,861 CNP Assurances (N) 18,900 2,164 Compagnie Generale des Etablissements Michelin Class B (N) 13,800 1,263 Credit Agricole SA (N) 774,430 33,167 Eiffage SA (N) 17,216 1,686 France Telecom SA (N) 603,207 16,667 Gaz de France SA (N) 89,780 3,860 Groupe Danone (N) 18,800 2,896 Iliad SA (N) 45,039 4,397 JC Decaux SA (N) 136,677 4,044
International Securities Fund 29 RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- L'Oreal SA (N) 50,690 5,358 Lafarge SA (N) 2,351 360 Lagardere SCA (N) 26,690 2,101 Legrand SA 144,580 4,298 LVMH Moet Hennessy Louis Vuitton SA (N) 114,205 12,042 Natixis 49,200 1,384 Nexans SA 30,929 4,221 NicOx SA (AE)(N) 17,988 455 Pernod-Ricard SA (N) 44,892 9,192 Peugeot SA (N) 67,305 4,426 PPR SA (N) 31,250 4,611 Renault SA (N) 180,157 22,295 Rhodia SA (AE) 203,860 733 Safran SA (N) 133,216 3,160 Sanofi-Aventis 379,591 33,370 Sanofi-Aventis (N) 3,305 290 Schneider Electric SA (N) 110,859 13,387 Societe BIC SA (N) 4,202 284 Societe Generale (N) 203,746 35,982 Sodexho Alliance SA (N) 23,798 1,661 Suez SA (AE)(N) 67,042 3,286 Suez SA (AE) 40,348 1 Thomson (AE)(N) 141,530 2,684 Total SA (N) 693,617 46,827 Total SA - ADR 55,272 3,761 Unibail (N) 26,670 6,726 Valeo SA (N) 51,623 2,356 Vallourec SA 75,336 19,471 Veolia Environnement (N) 375,060 26,275 Vivendi Universal SA (N) 174,402 7,178 ------------ 480,747 ------------ Germany - 7.2% Adidas AG 66,260 3,188 Allianz SE 43,567 8,688 BASF AG 64,115 6,178 Bayer AG 658,336 38,784 Bayerische Motoren Werke AG 56,810 3,465 Celesio AG 299 17 Commerzbank AG 50,600 2,139 Continental AG 275,838 33,384 DaimlerChrysler AG 46,935 2,916 Deutsche Bank AG 49,552 7,003 Deutsche Boerse AG 47,620 10,006 Deutsche Lufthansa AG 191,600 5,359 Deutsche Post AG 181,871 5,594 Deutsche Telekom AG 321,475 5,656 E.ON AG 288,583 39,207 Fresenius Medical Care AG & Co. KGaA 13,529 1,807 Hannover Rueckversicherung AG (AE)(N) 69,200 3,086
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Hochtief AG 26,699 2,179 Hypo Real Estate Holding AG 5,141 339 Infineon Technologies AG (AE) 1,418,807 20,286 KarstadtQuelle AG (AE)(N) 104,399 3,365 Lanxess AG (AE) 37,743 1,951 Linde AG 37,201 3,985 MAN AG (N) 22,500 2,367 Medion AG (N) 29,900 343 Merck KGaA (N) 12,900 1,504 Metro AG 15,210 1,041 MTU Aero Engines Holding AG 9,831 523 Muenchener Rueckversicherungs AG 59,958 9,456 Praktiker Bau- und Heimwerkermaerkte AG (N) 8,359 308 Rheinmetall AG 8,827 696 RWE AG 188,234 19,627 Salzgitter AG 55,642 7,078 Siemens AG (N) 105,715 11,644 Suedzucker AG (N) 42,090 916 Symrise AG (AE) 74,079 1,955 ThyssenKrupp AG (N) 5,599 264 TUI AG (N) 86,600 1,814 Volkswagen AG (N) 25,959 2,893 Wacker Chemie AG (AE) 47,451 7,632 ------------ 278,643 ------------ Greece - 0.3% Alpha Bank AE 74,600 2,400 Hellenic Telecommunications Organization SA (AE) 180,400 5,351 Public Power Corp. 132,490 3,816 ------------ 11,567 ------------ Hong Kong - 1.7% Bank of East Asia, Ltd. 126,800 728 BOC Hong Kong Holdings, Ltd. (N) 1,385,500 3,620 Cathay Pacific Airways, Ltd. 705,000 1,815 Cheung Kong Holdings, Ltd. 18,000 237 China Merchants Holdings International Co., Ltd. 82,000 300 China Mobile, Ltd. (N) 1,507,500 13,825 China Netcom Group Corp. Hong Kong, Ltd. 658,000 1,640 China Resources Power Holdings Co. 146,000 229 Citic Pacific, Ltd. (N) 306,200 1,073 CNOOC, Ltd. (N) 3,244,000 2,759 CNOOC, Ltd. - ADR (N) 43,575 3,738 Guangdong Investment, Ltd. 308,000 157
30 International Securities Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Guangzhou Investment Co., Ltd. 1,530,000 353 Hang Lung Group, Ltd. 127,000 434 Henderson Land Development Co., Ltd. (N) 68,000 393 Hong Kong Exchanges and Clearing, Ltd. (N) 866,500 9,400 HongKong Electric Holdings 1,287,500 6,365 Hopewell Holdings (N) 79,000 302 Hutchison Whampoa, Ltd. 297,700 2,959 Link REIT (The) (o) 588,000 1,384 Melco International Development 1,080,000 2,285 New World Development, Ltd. 97,000 213 Shenzhen Investment, Ltd. 352,000 143 Shun Tak Holdings, Ltd. (N) 3,431,200 4,606 Sino Land Co. (N) 558,351 1,254 Sun Hung Kai Properties, Ltd. 152,000 1,840 Swire Pacific, Ltd. 42,000 482 Wharf Holdings, Ltd. 1,211,862 4,470 Wheelock & Co., Ltd. 49,000 105 ------------ 67,109 ------------ Hungary - 0.0% MOL Hungarian Oil and Gas PLC 9,700 1,000 ------------ India - 0.2% ICICI Bank, Ltd. - ADR (N) 165,645 7,313 State Bank of India, Ltd. - GDR 24,500 1,590 ------------ 8,903 ------------ Indonesia - 0.1% Bank Central Asia Tbk PT 3,721,500 2,086 Telekomunikasi Indonesia Tbk PT 2,201,000 2,285 Telekomunikasi Indonesia Tbk PT - ADR 6,742 283 ------------ 4,654 ------------ Ireland - 0.4% Allied Irish Banks PLC 50,166 1,449 Bank of Ireland PLC 129,218 2,892 C&C Group PLC 47,200 695 Elan Corp. PLC - ADR (AE)(N) 289,400 3,603 Ryanair Holdings PLC - ADR (AE)(N) 80,806 7,005 ------------ 15,644 ------------ Israel - 0.1% Teva Pharmaceutical Industries, Ltd. - ADR (N) 78,240 2,746 ------------ Italy - 3.8% Amplifon SpA (N) 30,869 263 Assicurazioni Generali SpA (N) 114,090 4,912 Banco Popolare di Verona e Novara SCRL (N) 108,038 3,395
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Benetton Group SpA 17,400 302 Buzzi Unicem SpA (N) 158,853 4,503 Enel SpA (N) 171,480 1,815 ENI SpA 835,836 26,908 ERG SpA (N) 33,642 747 Esprinet SpA 25,281 506 Fastweb (N) 51,900 2,844 Fiat SpA (AE)(N) 124,800 2,710 Fondiaria-Sai SpA (N) 115,183 5,217 Fondiaria-Sai SpA 9,900 332 Intesa Sanpaolo SpA (N) 4,933,489 37,236 Italcementi SpA (N) 190,275 5,592 Mediaset SpA 325,360 3,927 Milano Assicurazioni SpA 167,200 1,333 Parmalat Finanziaria SpA (N)(B) 42,200 -- Saipem SpA (N) 43,800 1,072 Saras SpA (AE)(N) 375,740 1,905 Telecom Italia SpA (N) 390,000 977 Toro Assicurazioni SpA 12,499 342 UniCredito Italiano SpA (N) 3,803,310 35,195 Unipol SpA (N) 716,370 2,658 ------------ 144,691 ------------ Japan - 17.1% 77 Bank, Ltd. (The) (N) 309,400 2,043 Aderans Co., Ltd. (N) 5,200 121 Advantest Corp. (N) 77,100 3,859 Aeon Co., Ltd. 470,800 10,241 Aeon Credit Service Co., Ltd. (N) 144,700 2,758 Aiful Corp. (N) 49,107 1,493 Aioi Insurance Co., Ltd. 15,000 104 Alps Electric Co., Ltd. 95,500 1,005 Amada Co., Ltd. 58,000 623 Asahi Breweries, Ltd. 62,000 951 Asahi Glass Co., Ltd. (N) 427,000 5,626 Asahi Kasei Corp. 134,000 891 Astellas Pharma, Inc. 115,500 4,910 Bank of Nagoya, Ltd. (The) 31,000 191 Bank of Yokohama, Ltd. (The) 28,000 226 Bridgestone Corp. (N) 169,800 3,686 Brother Industries, Ltd. 64,000 890 Calsonic Kansei Corp. (N) 68,000 385 Canon Marketing Japan, Inc. (N) 10,000 217 Canon, Inc. 762,612 40,127 Chiba Bank, Ltd. (The) 36,000 324 Chugai Pharmaceutical Co., Ltd. 164,600 3,689
International Securities Fund 31 RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Dai Nippon Printing Co., Ltd. (N) 26,000 408 Daiichi Sankyo Co., Ltd. 28,700 799 Daikin Industries, Ltd. (N) 136,300 4,506 Dainippon Ink and Chemicals, Inc. 503,000 2,001 Daiwa House Industry Co., Ltd. 22,000 372 Daiwa Securities Group, Inc. 121,000 1,480 Denki Kagaku Kogyo Kabushiki Kaisha 79,000 330 Denso Corp. 20,600 826 Dentsu, Inc. (N) 1,558 4,648 East Japan Railway Co. 347 2,407 EDION Corp. (N) 113,300 1,594 Eisai Co., Ltd. 138,400 7,099 Fanuc, Ltd. 56,500 5,220 Fuji Electric Holdings Co., Ltd. 37,000 174 Fuji Fire & Marine Insurance Co., Ltd. (The) 73,000 281 Fuji Heavy Industries, Ltd. (N) 112,000 586 FUJIFILM Holdings Corp. (N) 107,300 4,428 Fujikura, Ltd. 20,000 175 Fujitsu, Ltd. (N) 168,000 1,260 Funai Electric Co., Ltd. (N) 23,400 2,133 Hachijuni Bank, Ltd. (The) 12,000 83 Higo Bank, Ltd. (The) 10,000 70 Hino Motors, Ltd. 581,500 3,007 Hirose Electric Co., Ltd. (N) 7,000 829 Hitachi, Ltd. (N) 383,000 2,571 Hokkoku Bank, Ltd. (The) 13,000 52 Honda Motor Co., Ltd. 225,900 8,891 Hyakugo Bank, Ltd. (The) 13,000 83 Hyakujushi Bank, Ltd. (The) 10,000 63 Ibiden Co., Ltd. 29,200 1,449 Inpex Holdings, Inc. (AE)(N) 14 115 Isuzu Motors, Ltd. (N) 377,000 1,887 Itochu Corp. 166,000 1,450 Izumi Co., Ltd. (N) 13,300 508 Japan Tobacco, Inc. 6,891 33,119 JFE Holdings, Inc. (N) 192,000 10,644 JGC Corp. 14,000 244 JS Group Corp. 90,600 2,068 Kagoshima Bank, Ltd. (The) 12,000 88 Kandenko Co., Ltd. (N) 9,000 51 Kansai Electric Power Co., Inc. (The) 66,300 1,857 Kao Corp. 1,075,000 30,732 Kawasaki Kisen Kaisha, Ltd. (N) 96,000 830 KDDI Corp. 1,584 11,209 Keio Corp. 45,000 299 Keiyo Bank, Ltd. (The) 29,000 176 Kobe Steel, Ltd. 234,000 845 Komatsu, Ltd. 53,200 1,124 Konica Minolta Holdings, Inc. (AE) 15,000 205 Kubota Corp. 114,000 1,201 Kuraray Co., Ltd. 128,300 1,546 Kyocera Corp. 12,500 1,149 Lawson, Inc. (N) 52,100 1,887
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Leopalace21 Corp. 64,400 2,049 Lintec Corp. 4,900 92 Mabuchi Motor Co., Ltd. (N) 13,100 761 Makita Corp. (N) 28,100 971 Marubeni Corp. 943,000 5,079 Matsumotokiyoshi Co., Ltd. (N) 75,044 1,695 Matsushita Electric Industrial Co., Ltd. 93,000 1,850 Matsushita Electric Works, Ltd. 70,000 774 Mazda Motor Corp. 164,000 1,076 Meiji Dairies Corp. 32,000 245 Millea Holdings, Inc. 151,400 5,407 Mitsubishi Chemical Holdings Corp. 145,000 978 Mitsubishi Corp. 431,300 8,720 Mitsubishi Electric Corp. 150,000 1,359 Mitsubishi Estate Co., Ltd. 50,000 1,429 Mitsubishi Heavy Industries, Ltd. 57,000 293 Mitsubishi UFJ Financial Group, Inc. 1,104 13,356 Mitsui & Co., Ltd. (N) 65,000 1,038 Mitsui Chemicals, Inc. 490,000 3,959 Mitsui Fudosan Co., Ltd. 237,000 6,147 Mitsui OSK Lines, Ltd. (N) 608,000 6,328 Mitsui Sumitomo Insurance Co., Ltd. 19,000 227 Mitsui Trust Holdings, Inc. 771,700 8,447 Mizuho Financial Group, Inc. 1,054 7,598 Mochida Pharmaceutical Co., Ltd. 10,000 88 Mori Seiki Co., Ltd. 18,700 409 Nabtesco Corp. 12,000 153 Nichirei Corp. 146,000 798 Nihon Unisys, Ltd. 11,900 182 Nikon Corp. 121,000 2,697 Nintendo Co., Ltd. 76,600 22,597 Nippon Electric Glass Co., Ltd. 129,000 3,079 Nippon Express Co., Ltd. (N) 1,039,400 5,900 Nippon Mining Holdings, Inc. 245,500 1,764 Nippon Oil Corp. 89,000 597 Nippon Paint Co., Ltd. 22,000 116 Nippon Paper Group, Inc. 606 2,305 Nippon Steel Corp. (N) 335,000 1,976 Nippon Telegraph & Telephone Corp. 1,295 6,460 Nippon Yusen KK (N) 175,000 1,338 Nissan Motor Co., Ltd. (N) 627,900 7,846 Nisshin Seifun Group, Inc. 50,000 515 Nitto Denko Corp. (N) 34,100 1,670 NOK Corp. (N) 76,800 1,349 Nomura Holdings, Inc. 685,000 13,935 Nomura Research Institute, Ltd. 2,200 343 Noritsu Koki Co., Ltd. (N) 2,800 52 NTN Corp. (N) 36,000 326
32 International Securities Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- NTT Data Corp. 46 235 NTT DoCoMo, Inc. 399 608 Okasan Holdings, Inc. (N) 4,000 29 Oki Electric Industry Co., Ltd. (N) 422,000 902 Omron Corp. 141,100 3,800 ORIX Corp. (N) 45,140 12,942 Pacific Metals Co., Ltd. 23,000 264 Rakuten, Inc. (N) 12,567 6,623 Rengo Co., Ltd. (N) 129,000 827 Resona Holdings, Inc. (N) 234 650 Ricoh Co., Ltd. 1,099,200 23,955 Rinnai Corp. (N) 9,800 292 Rohm Co., Ltd. 56,100 5,095 Sankyo Co., Ltd. (N) 9,400 467 Sapporo Hokuyo Holdings, Inc. 63 632 Secom Co., Ltd. 7,300 361 Sega Sammy Holdings, Inc. 138,200 3,561 Seino Holdings Corp. 26,000 242 Sekisui Chemical Co., Ltd. 347,500 2,675 Sekisui House, Ltd. (N) 305,800 4,287 Seven & I Holdings Co., Ltd. (N) 1,600 48 SFCG Co., Ltd. (N) 6,782 1,080 Sharp Corp. 274,000 4,666 Shiga Bank, Ltd. (The) (N) 17,000 112 Shimano, Inc. 5,500 160 Shimizu Corp. 18,200 98 Shin-Etsu Chemical Co., Ltd. 32,300 2,098 Shinsei Bank, Ltd. 1,333,300 7,314 Softbank Corp. 162,500 3,804 Sohgo Security Services Co., Ltd. 22,900 447 Sompo Japan Insurance, Inc. 62,000 787 Sony Corp. 25,600 1,177 Sumco Corp. (N) 117,100 4,231 Sumitomo Chemical Co., Ltd. 10,000 77 Sumitomo Corp. 18,700 290 Sumitomo Heavy Industries, Ltd. 465,000 4,832 Sumitomo Metal Industries, Ltd. 242,000 1,027 Sumitomo Mitsui Financial Group, Inc. (N) 2,910 29,659 Sumitomo Realty & Development Co., Ltd. (N) 269,000 9,340 Sumitomo Trust & Banking Co., Ltd. (The) 113,000 1,209 Suzuken Co., Ltd. (N) 6,900 240 Suzuki Motor Corp. (N) 380,400 10,938 Takeda Pharmaceutical Co., Ltd. 206,900 13,493 Takefuji Corp. (N) 76,020 3,061 TDK Corp. (N) 20,400 1,714 Terumo Corp. 56,100 2,255 Tobu Railway Co., Ltd. (N) 79,000 372 Tokai Rubber Industries, Inc. 9,800 172 Tokyo Electric Power Co., Inc. (The) (N) 157,700 5,371 Tokyo Electron, Ltd. (N) 6,200 438 Tokyo Gas Co., Ltd. 868,000 4,481
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Tokyo Style Co., Ltd. 6,000 65 Tokyu Corp. (N) 107,000 718 Tokyu Land Corp. 10,000 102 Toppan Printing Co., Ltd. 17,000 183 Toshiba Corp. (N) 228,000 1,455 Toyo Seikan Kaisha, Ltd. (N) 7,700 139 Toyobo Co., Ltd. 55,000 167 Toyoda Gosei Co., Ltd. 7,500 178 Toyota Boshoku Corp. 2,200 46 Toyota Motor Corp. 991,500 65,317 West Japan Railway Co. 885 3,945 Yahoo! Japan Corp. 480 180 Yamada Denki Co., Ltd. (N) 54,290 4,508 Yamato Kogyo Co., Ltd. 3,800 100 ------------ 662,333 ------------ Luxembourg - 0.1% Acergy SA (AE)(N) 48,300 936 Millicom International Cellular SA (AE)(N) 44,200 2,937 SES Global SA (N) 68,900 1,199 ------------ 5,072 ------------ Mexico - 1.0% America Movil SA de CV Series L (N) 379,119 16,818 Cemex SAB de CV - ADR (AE)(N) 281,757 9,969 Coca-Cola Femsa SA de CV - ADR (N) 45,660 1,827 Fomento Economico Mexicano SA de CV - ADR 53,259 6,395 Grupo Televisa SA - ADR 50,182 1,478 Telefonos de Mexico SA de CV Series L (N) 51,300 1,575 ------------ 38,062 ------------ Netherlands - 3.3% ABN AMRO Holding NV 255,984 8,174 Aegon NV 146,319 2,870 Arcelor Mittal 130,875 6,085 ASML Holding NV (AE) 336,314 8,495 Buhrmann NV 118,800 1,779 CSM 8,973 322 European Aeronautic Defense and Space Co. NV (N) 134,510 4,464 Hagemeyer NV (AE)(N) 265,977 1,231 Heineken Holding NV 17,444 754
International Securities Fund 33 RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Heineken NV 113,600 5,755 Hunter Douglas NV 5,042 414 ING Groep NV 890,593 38,943 Koninklijke Ahold NV (AE) 219,728 2,205 Koninklijke BAM Groep NV 101,800 2,108 Koninklijke Philips Electronics NV 305,243 11,872 Reed Elsevier NV 496,932 8,705 Rodamco Europe NV 4,914 664 Royal KPN NV 92,687 1,335 Royal Numico NV 168,802 8,954 SBM Offshore NV 96,700 3,408 STMicroelectronics NV (N) 93,400 1,737 Stork NV (AE)(N) 11,516 596 TNT NV 32,030 1,441 Unilever NV 27,200 724 Wolters Kluwer NV 98,600 2,957 ------------ 125,992 ------------ Netherlands Antilles - 0.0% Schlumberger, Ltd. (N) 10,700 679 ------------ New Zealand - 0.1% Telecom Corp. of New Zealand, Ltd. (N) 1,439,569 4,930 ------------ Norway - 0.4% Aker Kvaerner ASA (N) 21,000 2,372 Telenor ASA 694,600 14,081 ------------ 16,453 ------------ Russia - 0.3% Mobile Telesystems - ADR 151,000 8,178 OAO Gazprom - ADR 42,450 1,824 Vimpel-Communications - ADR (AE)(N) 36,300 3,101 ------------ 13,103 ------------ Singapore - 1.1% CapitaLand, Ltd. (N) 1,552,000 6,771 City Developments, Ltd. 17,000 155 DBS Group Holdings, Ltd. 652,740 9,351 Flextronics International, Ltd. (AE)(N) 130,600 1,519 Fraser and Neave, Ltd. (N) 200,000 684 Jardine Cycle & Carriage, Ltd. 39,000 358 Keppel Corp., Ltd. 375,000 4,371 NatSteel, Ltd. 50,000 49 Oversea-Chinese Banking Corp. 929,800 4,783 Pacific Century Regional Developments, Ltd. (AE)(N) 407,000 89 SembCorp Industries, Ltd. 99,120 276 Singapore Airlines, Ltd. 45,000 516 Singapore Petroleum Co., Ltd. 69,000 196 Singapore Telecommunications, Ltd. 2,969,310 6,767 United Overseas Bank, Ltd. 336,000 4,135
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- United Overseas Land, Ltd. 64,000 213 Want Want Holdings, Ltd. 24,000 36 ------------ 40,269 ------------ South Africa - 0.2% MTN Group, Ltd. 128,000 1,537 Nedbank Group, Ltd. 107,790 2,060 Sanlam, Ltd. 335,000 865 Standard Bank Group, Ltd. 66,200 907 Tiger Brands, Ltd. 31,800 759 ------------ 6,128 ------------ South Korea - 0.6% Honam Petrochemical Corp. (AE) 9,400 760 Hynix Semiconductor, Inc. (AE) 4,800 159 Hyundai Mobis (AE) 6,000 486 Industrial Bank of Korea (AE)(N) 58,000 1,069 Kookmin Bank (AE) 9,300 740 Korea Electric Power Corp. - ADR 77,410 1,770 KT Corp. - ADR 57,990 1,339 LG.Philips LCD Co., Ltd. (AE) 13,700 382 POSCO 3,900 1,365 Samsung Electronics Co., Ltd. 20,981 12,903 Shinhan Financial Group Co., Ltd. (AE) 15,000 784 SK Telecom Co., Ltd. - ADR (N) 67,020 1,592 ------------ 23,349 ------------ Spain - 2.3% Abengoa SA (N) 36,954 1,438 Actividades de Construccion y Servicios SA (N) 53,300 2,899 Antena 3 de Television SA (N) 25,485 561 Banco Bilbao Vizcaya Argentaria SA (N) 480,720 11,936 Banco Santander Central Hispano SA (N) 813,604 15,471 Corporacion Mapfre SA 384,113 1,922 Endesa SA 25,026 1,258 Gamesa Corp. Tecnologica SA (N) 56,100 1,532 Gestevision Telecinco SA (N) 95,585 2,589 Iberdrola SA (N) 196,725 8,410 Iberia Lineas Aereas de Espana 368,456 1,527 Inditex SA 153,200 8,680 Obrascon Huarte Lain SA 3,644 134 Repsol YPF SA (N) 234,665 7,689 Repsol YPF SA - ADR (N) 28,026 923 Telefonica SA 1,004,617 21,932
34 International Securities Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Union Fenosa SA 24,423 1,217 ------------ 90,118 ------------ Sweden - 1.3% Alfa Laval AB 27,400 1,285 D Carnegie & Co. AB (N) 15,100 342 Electrolux AB (AE)(N) 263,700 4,990 Hennes & Mauritz AB Class B 37,900 2,050 JM AB 37,800 1,014 Lindex AB (N) 52,200 717 Nordea Bank AB 189,000 2,953 Scania AB Class B (AE) 2,900 208 Skandinaviska Enskilda Banken AB Class A 32,200 1,075 SKF AB Class B 126,200 2,488 Ssab Svenskt Stal AB Series A (N) 89,400 2,168 Ssab Svenskt Stal AB Series B 20,500 479 Svenska Cellulosa AB Class B 97,430 5,208 Svenska Handelsbanken AB Class A 28,900 884 Swedish Match AB 307,500 5,442 Telefonaktiebolaget LM Ericsson - ADR 311,511 12,395 Telefonaktiebolaget LM Ericsson Class B 1,146,740 4,538 TeliaSonera AB 87,000 695 Volvo AB Class B 6,000 439 ------------ 49,370 ------------ Switzerland - 8.3% ABB, Ltd. 1,416,053 25,050 Actelion, Ltd. (AE) 24,010 5,840 Ciba Specialty Chemicals AG 73,781 4,918 Clariant AG (AE) 109,680 1,883 Compagnie Financiere Richemont AG Class A (N) 73,960 4,127 Credit Suisse Group 289,950 20,482 Geberit AG 793 1,340 Givaudan SA 3,930 3,546 Holcim, Ltd. 12,970 1,285 Julius Baer Holding AG 122,772 14,719 Kudelski SA 8,555 324 Logitech International SA (AE) 256,912 7,333 Lonza Group AG 82,869 7,843 Nestle SA 147,332 54,051 Nobel Biocare Holding AG 17,740 5,873 Novartis AG 168,368 9,687 Phonak Holding AG 6,547 507 Roche Holding AG 321,685 60,449 Sulzer AG 1,687 2,389 Swatch Group AG 92,592 4,445 Swiss Reinsurance 210,463 17,498
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Swisscom AG 8,633 3,224 Syngenta AG (AE) 96,752 17,839 UBS AG 707,701 44,272 Zurich Financial Services AG 9,244 2,486 ------------ 321,410 ------------ Taiwan - 0.4% AU Optronics Corp. 1,024,000 1,359 China Steel Corp. 820,000 847 Compal Electronics, Inc. 1,061,000 959 HON HAI Precision Industry Co., Ltd. 984,400 6,727 Siliconware Precision Industries Co. 918,000 1,522 Taiwan Semiconductor Manufacturing Co., Ltd. 585,000 1,197 United Microelectronics Corp. 1,801,000 1,130 United Microelectronics Corp. - ADR (N) 672,233 2,386 ------------ 16,127 ------------ Thailand - 0.1% Bangkok Bank PCL 695,680 2,242 ------------ Turkey - 0.0% Turkcell Iletisim Hizmet AS 1 -- ------------ United Kingdom - 17.7% 3i Group PLC 5,037 104 Admiral Group PLC 58,133 1,166 Alliance Boots PLC 934,983 14,824 Amvescap PLC 369,593 4,408 Anglo American PLC 73,170 3,398 ARM Holdings PLC 1,623,962 3,877 AstraZeneca PLC 110,323 6,156 Aviva PLC 825,296 13,312 BAE Systems PLC 1,913,135 15,702 Barclays PLC 1,773,590 25,786 Berkeley Group Holdings PLC (AE) 28,559 841 BG Group PLC 1,058,796 13,906 BHP Billiton PLC 543,652 10,126 BP PLC 2,384,467 25,040 British Airways PLC (AE) 191,715 2,026 British American Tobacco PLC 247,200 7,499 British Energy Group PLC (AE) 128,153 1,101 British Land Co. PLC (o) 175,001 5,395 Brixton PLC (o) 4,641 46 BT Group PLC 620,776 3,732 Cadbury Schweppes PLC 280,949 3,174
International Securities Fund 35 RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Carphone Warehouse Group PLC (N) 907,073 5,493 Centrica PLC 870,336 6,344 Charter PLC (AE) 92,188 1,540 Compass Group PLC 269,453 1,605 Corus Group PLC 5,528 65 Davis Service Group PLC 23,600 249 De La Rue PLC 23,073 298 Debenhams PLC 1,683,361 5,482 Diageo PLC 1,048,305 20,390 Drax Group PLC (AE) 1 -- easyJet PLC (AE) 284,111 3,645 EMI Group PLC 213,382 1,036 Firstgroup PLC 185,314 1,982 Friends Provident PLC 1,139,490 4,858 Galiform PLC (AE) 20,774 53 Gallaher Group PLC 11,067 247 George Wimpey PLC 178,800 1,890 GKN PLC 732,098 4,603 GlaxoSmithKline PLC 1,759,737 47,193 Great Portland Estates PLC (o) 820 11 Hammerson PLC (o) 1,756 51 HBOS PLC 1,372,003 29,948 HMV Group PLC (N) 185,052 489 Home Retail Group 254,140 2,122 HSBC Holdings PLC 671,131 12,198 Inchcape PLC 201,926 2,099 Invensys PLC (AE) 185,070 1,078 Investec PLC 43,539 534 ITV PLC 35,600 75 J Sainsbury PLC 882,497 7,521 Kazakhmys PLC 2,364 49 Kelda Group PLC 96,800 1,774 Kesa Electricals PLC 1,137,825 7,589 Ladbrokes PLC 682,260 5,878 Land Securities Group PLC (o) 21,780 916 Legal & General Group PLC 403,264 1,226 Lloyds TSB Group PLC 1,249,384 14,274 Man Group PLC 2,387,034 25,079 Marks & Spencer Group PLC 77,200 1,025 Marston's PLC 295,200 2,478 Mitchells & Butlers PLC 31,700 433 Next PLC 222,724 8,546 Northern Rock PLC 354,117 8,168 Old Mutual PLC 970,230 3,274 Pearson PLC 161,920 2,551 Premier Farnell PLC 156,851 591 Reckitt Benckiser PLC 678,527 32,648 Reed Elsevier PLC 351,720 4,015 Rentokil Initial PLC 1,287,380 4,079 Resolution PLC 4,299 55 Rexam PLC 35,800 378 RHM PLC 1,350 10 Rio Tinto PLC 58,644 3,128 Rolls-Royce Group PLC 208,836 1,920
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Royal & Sun Alliance Insurance Group PLC 1,288,099 4,074 Royal Bank of Scotland Group PLC 1,283,696 51,576 Royal Dutch Shell PLC Class A 1,031 34,834 Royal Dutch Shell PLC Class B 146,566 4,913 SABMiller PLC 164,002 3,718 Scottish & Newcastle PLC 4,817 51 Scottish & Southern Energy PLC 22,223 653 Scottish Power PLC 33,378 490 Severn Trent PLC 83,766 2,329 Slough Estates PLC (o) 89,600 1,308 Smiths Group PLC 404,040 8,458 Standard Life PLC (AE) 33,238 192 Taylor Woodrow PLC 247,397 1,978 Tesco PLC 5,542,411 45,517 Trinity Mirror PLC 493,313 4,633 Unilever PLC 692,274 18,824 United Business Media PLC 769 11 Vedanta Resources PLC 449 10 Vodafone Group PLC 7,274,034 21,151 William Hill PLC 765,254 9,652 Wilson Bowden PLC 239 11 WPP Group PLC 628,800 9,228 Xstrata PLC 135,806 6,329 ------------ 684,742 ------------ United States - 0.1% Synthes, Inc. 21,019 2,642 ------------ TOTAL COMMON STOCKS (cost $2,754,567) 3,507,021 ------------
36 International Securities Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- PREFERRED STOCKS - 0.2% Brazil - 0.1% Banco Itau Holding Financeira SA 96,300 3,559 Petroleo Brasileiro SA 44,300 977 Usinas Siderurgicas de Minas Gerais SA 41,200 1,556 ------------ 6,092 ------------ Germany - 0.1% Volkswagen AG 37,472 2,774 ------------ South Korea - 0.0% Hyundai Motor Co. 21,000 864 Samsung Electronics Co., Ltd. 1,600 751 ------------ 1,615 ------------ TOTAL PREFERRED STOCKS (cost $9,427) 10,481 ------------
NOTIONAL AMOUNT $ ------------ OPTIONS PURCHASED - 0.1% (Number of Contracts) Belgium - 0.1% Bel 20 Index Futures Feb 2007 4,484.69 (EUR) Call (143) 8,359 932 ------------ Hong Kong - 0.0% Hang Seng Index Futures Feb 2007 20,520.21 (HKD) Call (101) 13,273 323 ------------ Switzerland - 0.0% Swiss Market Index Futures Mar 2007 8,667.21 (CHF) Put (59) 4,112 237 Mar 2007 8,904.44 (CHF) Put (126) 9,022 507 ------------ 744 ------------ TOTAL OPTIONS PURCHASED (cost $2,001) 1,999 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- WARRANTS & RIGHTS - 0.2% France - 0.0% NicOx SA (AE) 17,988 29 ------------ Germany - 0.0% Merck KGaA (AE) 12,900 27 ------------ United Kingdom - 0.1% Infosys Technologies, Ltd. 2007 Warrants (AE) 40,000 2,029 ------------ United States - 0.1% Bharti Tele Ventures, Ltd. 2009 Warrants (AE) 130,300 2,071 ICICI Bank, Ltd. 2009 Warrants (AE) 61,800 1,304 Satyam Computer Services, Ltd. (p) 2009 Warrants (AE) 119,100 1,264 ------------ 4,639 ------------ TOTAL WARRANTS & RIGHTS (cost $6,044) 6,724 ------------ SHORT-TERM INVESTMENTS - 8.7% United States - 8.7% Russell Investment Company Money Market Fund 318,168,000 318,168 United States Treasury Bills (c)(z)(sec.) 4.973% due 03/15/07 17,000 16,904 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $335,072) 335,072 ------------ OTHER SECURITIES - 19.4% Russell Investment Company Money Market Fund (X) 185,659,902 185,660 State Street Securities Lending Quality Trust (X) 566,064,143 566,064 ------------ TOTAL OTHER SECURITIES (cost $751,724) 751,724 ------------ TOTAL INVESTMENTS - 119.2% (identified cost $3,858,836) 4,613,021 OTHER ASSETS AND LIABILITIES, NET - (19.2%) (744,631) ------------ NET ASSETS - 100.0% 3,868,390 ============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. International Securities Fund 37 RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions AEX Index (Netherlands) expiration date 02/07 (167) 21,686 (310) CAC-40 Index (France) expiration date 02/07 (295) 21,524 115 expiration date 03/07 (170) 12,436 284 DAX Index (Germany) expiration date 03/07 (258) 57,115 1,625 EUR STOXX 50 Index (EMU) expiration date 03/07 (1,120) 61,024 1,107 FTSE-100 Index (UK) expiration date 03/07 (530) 64,185 (1) Hang Seng Index (Hong Kong) expiration date 02/07 (99) 12,776 (179) IBEX Plus Index (Spain) expiration date 02/07 (30) 5,673 52 MSCI Singapore Index expiration date 02/07 (10) 494 1 SPI 200 Index (Australia) expiration date 03/07 (140) 15,567 406 TOPIX Index (Japan) expiration date 03/07 (771) 109,952 6,492 Short Positions FTSE-100 Index (UK) expiration date 03/07 (225) 27,248 (7) MIB-30 (Italy) expiration date 03/07 (67) 18,455 (484) OMX Stockholm 30 Index (Sweden) expiration date 02/07 (819) 13,950 (74) SPI 200 Index (Australia) expiration date 03/07 (200) 22,239 (598) --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts $ 8,429 ===============
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Belgium Bel 20 Index Futures Feb 2007 4,484.69 (EUR) Put (143) 8,359 (1,013) Hong Kong Hang Seng Index Futures Feb 2007 20,520.2068 (HKD) Put (101) 13,273 (553) Switzerland Swiss Market Index Futures Mar 2007 8,667.21 (CHF) Call (59) 4,112 (450) Mar 2007 8,904.44 (CHF) Call (126) 9,022 (720) --------------- Total Liability for Options Written (premiums received $2,001) (2,736) ===============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 38 International Securities Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 87 AUD 112 02/01/07 1 USD 388 AUD 500 03/20/07 -- USD 392 AUD 500 03/20/07 (4) USD 394 AUD 500 03/20/07 (6) USD 781 AUD 1,000 03/20/07 (6) USD 788 AUD 1,000 03/20/07 (12) USD 1,340 AUD 1,700 03/20/07 (21) USD 1,340 AUD 1,700 03/20/07 (21) USD 2,716 AUD 3,500 03/20/07 (2) USD 15,377 AUD 19,500 03/20/07 (253) USD 45 AUD 57 03/21/07 -- USD 293 AUD 375 03/21/07 (2) USD 1,141 AUD 1,466 03/21/07 (5) USD 2,029 AUD 2,599 03/21/07 (13) USD 3,196 AUD 4,099 03/21/07 (16) USD 4,231 AUD 5,423 03/21/07 (26) USD 7,070 AUD 9,088 03/21/07 (22) USD 10,730 AUD 13,754 03/21/07 (63) USD 62 CAD 73 02/02/07 -- USD 757 CHF 949 02/01/07 6 USD 1,481 CHF 1,856 02/01/07 11 USD 241 CHF 301 02/02/07 1 USD 413 CHF 517 02/02/07 3 USD 865 CHF 1,080 02/05/07 3 USD 1,846 CHF 2,291 02/05/07 (4) USD 463 CHF 559 03/21/07 (11) USD 1,557 CHF 1,876 03/21/07 (42) USD 2,610 CHF 3,144 03/21/07 (71) USD 6,763 CHF 8,152 03/21/07 (180) USD 15,914 CHF 19,171 03/21/07 (433) USD 16,365 CHF 20,138 03/21/07 (102) USD 23,322 CHF 28,069 03/21/07 (655) USD 28,279 CHF 34,061 03/21/07 (773) USD 285 DKK 1,638 02/01/07 2 USD 166 DKK 937 03/21/07 (2) USD 211 DKK 1,205 03/21/07 -- USD 237 DKK 1,335 03/21/07 (3) USD 221 EUR 170 02/01/07 1 USD 314 EUR 243 02/01/07 2 USD 420 EUR 324 02/01/07 3 USD 1,595 EUR 1,230 02/01/07 8 USD 2,953 EUR 2,278 02/01/07 16 USD 450 EUR 347 02/02/07 2 USD 721 EUR 556 02/02/07 4 USD 1,401 EUR 1,081 02/02/07 8
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 2,852 EUR 2,200 02/02/07 16 USD 309 EUR 237 02/05/07 1 USD 453 EUR 349 02/05/07 1 USD 2,596 EUR 2,000 03/20/07 17 USD 2,597 EUR 2,000 03/20/07 15 USD 2,601 EUR 2,000 03/20/07 11 USD 2,645 EUR 2,000 03/20/07 (33) USD 3,895 EUR 3,000 03/20/07 24 USD 3,915 EUR 3,000 03/20/07 4 USD 3,974 EUR 3,000 03/20/07 (55) USD 4,005 EUR 3,000 03/20/07 (87) USD 6,494 EUR 5,000 03/20/07 37 USD 10,679 EUR 8,000 03/20/07 (230) USD 11,632 EUR 9,000 03/20/07 124 USD 64,320 EUR 48,200 03/20/07 (1,362) USD 93,677 EUR 70,200 03/20/07 (1,983) USD 7,325 EUR 5,551 03/21/07 (74) USD 10,186 EUR 7,711 03/21/07 (114) USD 16,909 EUR 12,805 03/21/07 (182) USD 39,083 EUR 29,598 03/21/07 (421) USD 226 GBP 115 02/01/07 -- USD 343 GBP 175 02/01/07 1 USD 119 GBP 61 02/02/07 -- USD 386 GBP 198 02/02/07 3 USD 966 GBP 500 03/20/07 16 USD 983 GBP 500 03/20/07 -- USD 1,964 GBP 1,000 03/20/07 1 USD 1,970 GBP 1,000 03/20/07 (5) USD 1,972 GBP 1,000 03/20/07 (7) USD 2,750 GBP 1,400 03/20/07 -- USD 2,947 GBP 1,500 03/20/07 -- USD 3,923 GBP 2,000 03/20/07 6 USD 3,928 GBP 2,000 03/20/07 2 USD 3,929 GBP 2,000 03/20/07 -- USD 3,949 GBP 2,000 03/20/07 (20) USD 79,944 GBP 40,700 03/20/07 11 USD 549 GBP 280 03/21/07 1 USD 1,738 GBP 886 03/21/07 3 USD 5,291 GBP 2,699 03/21/07 11 USD 12,141 GBP 6,191 03/21/07 21 USD 14,398 GBP 7,339 03/21/07 20 USD 14,935 GBP 7,555 03/21/07 (93) USD 20,414 GBP 10,409 03/21/07 35 USD 42,950 GBP 21,894 03/21/07 60 USD 4 HKD 29 03/21/07 --
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. International Securities Fund 39 RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 59 HKD 460 03/21/07 -- USD 187 HKD 1,450 03/21/07 (1) USD 190 HKD 1,472 03/21/07 (1) USD 357 HKD 2,766 03/21/07 (2) USD 444 HKD 3,447 03/21/07 (1) USD 1,002 HKD 7,763 03/21/07 (7) USD 59 HKD 463 12/16/07 -- USD 84 JPY 10,211 02/01/07 1 USD 173 JPY 21,144 02/01/07 2 USD 1,223 JPY 149,020 02/01/07 11 USD 1,302 JPY 158,672 02/01/07 13 USD 178 JPY 21,676 02/02/07 1 USD 1,292 JPY 156,928 02/02/07 9 USD 391 JPY 47,536 02/05/07 3 USD 880 JPY 100,000 03/20/07 (46) USD 1,246 JPY 150,000 03/20/07 5 USD 1,657 JPY 200,000 03/20/07 11 USD 1,673 JPY 200,000 03/20/07 (5) USD 1,702 JPY 200,000 03/20/07 (34) USD 2,594 JPY 300,000 03/20/07 (92) USD 2,638 JPY 300,000 03/20/07 (136) USD 3,079 JPY 350,000 03/20/07 (160) USD 3,308 JPY 400,000 03/20/07 28 USD 4,833 JPY 550,000 03/20/07 (245) USD 5,025 JPY 600,000 03/20/07 (21) USD 14,936 JPY 1,700,000 03/20/07 (757) USD 57,112 JPY 6,500,000 03/20/07 (2,900) USD 224 JPY 26,023 03/22/07 (7) USD 11,126 JPY 1,295,333 03/22/07 (320) USD 14,424 JPY 1,742,782 03/22/07 115 USD 18 NZD 27 03/21/07 -- USD 32 NZD 47 03/21/07 -- USD 278 SEK 1,933 02/05/07 1 USD 519 SEK 3,521 03/21/07 (11) USD 556 SEK 3,814 03/21/07 (6) USD 6,676 SEK 46,384 03/21/07 17 USD 13,058 SEK 89,496 03/21/07 (143) USD 16,059 SEK 109,918 03/21/07 (198) USD 25,117 SEK 172,085 03/21/07 (286) USD 25,645 SEK 175,533 03/21/07 (316) USD 186 SGD 285 03/21/07 -- USD 528 SGD 810 03/21/07 1 USD 4,439 SGD 6,806 03/21/07 4 USD 5,798 SGD 8,895 03/21/07 8 USD 8,059 SGD 12,362 03/21/07 11
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 11,339 SGD 17,351 03/21/07 (13) USD 21,955 SGD 33,689 03/21/07 36 USD 190 ZAR 1,373 02/01/07 -- AUD 116 USD 90 02/02/07 (1) AUD 500 USD 392 03/20/07 4 AUD 500 USD 396 03/20/07 8 AUD 1,000 USD 790 03/20/07 14 AUD 1,380 USD 1,088 03/20/07 17 AUD 2,400 USD 1,891 03/20/07 30 AUD 2,700 USD 2,099 03/20/07 5 AUD 57 USD 45 03/21/07 1 AUD 3,990 USD 3,116 03/21/07 22 AUD 5,202 USD 4,058 03/21/07 23 AUD 5,970 USD 4,660 03/21/07 30 AUD 21,642 USD 16,903 03/21/07 119 CAD 2 USD 2 02/01/07 -- CHF 243 USD 194 02/01/07 (1) CHF 359 USD 287 02/02/07 (2) CHF 399 USD 320 02/05/07 (1) CHF 12,734 USD 10,568 03/21/07 285 CHF 51,345 USD 42,630 03/21/07 1,166 DKK 126 USD 22 03/21/07 -- DKK 295 USD 52 03/21/07 -- DKK 403 USD 71 03/21/07 1 DKK 1,203 USD 210 03/21/07 (1) DKK 4,586 USD 812 03/21/07 9 EUR 73 USD 95 02/01/07 (1) EUR 145 USD 188 02/01/07 (1) EUR 162 USD 210 02/01/07 (1) EUR 483 USD 626 02/01/07 (4) EUR 464 USD 601 02/02/07 (4) EUR 572 USD 741 02/02/07 (5) EUR 1,584 USD 2,054 02/02/07 (11) EUR 500 USD 658 03/20/07 5 EUR 1,000 USD 1,304 03/20/07 (2) EUR 1,000 USD 1,327 03/20/07 21 EUR 1,000 USD 1,336 03/20/07 29 EUR 1,500 USD 1,984 03/20/07 24 EUR 2,000 USD 2,673 03/20/07 60 EUR 3,000 USD 3,890 03/20/07 (28) EUR 3,400 USD 4,540 03/20/07 99 EUR 4,000 USD 5,214 03/20/07 (11) EUR 4,600 USD 6,138 03/20/07 130 EUR 7,000 USD 9,248 03/20/07 105 EUR 9,000 USD 11,751 03/20/07 (4)
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 40 International Securities Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- EUR 9,000 USD 11,741 03/20/07 (14) EUR 20,000 USD 26,697 03/20/07 574 EUR 434 USD 573 03/21/07 6 EUR 798 USD 1,055 03/21/07 13 EUR 1,231 USD 1,626 03/21/07 18 EUR 1,626 USD 2,119 03/21/07 (4) EUR 16,189 USD 21,125 03/21/07 (22) EUR 26,662 USD 35,222 03/21/07 395 EUR 41,027 USD 54,179 03/21/07 588 GBP 132 USD 259 02/01/07 -- GBP 196 USD 385 02/02/07 (1) GBP 22 USD 43 02/05/07 -- GBP 98 USD 193 02/05/07 -- GBP 1,000 USD 1,965 03/20/07 1 GBP 1,500 USD 2,928 03/20/07 (19) GBP 2,000 USD 3,927 03/20/07 (2) GBP 2,000 USD 3,963 03/20/07 33 GBP 3,900 USD 7,662 03/20/07 -- GBP 4,300 USD 8,299 03/20/07 (149) GBP 7,500 USD 14,728 03/20/07 (6) GBP 6,129 USD 12,026 03/21/07 (14) GBP 10,212 USD 19,690 03/21/07 (372) GBP 33,357 USD 65,437 03/21/07 (93) GBP 15,509 USD 30,313 04/26/07 (158) HKD 131 USD 17 02/01/07 -- HKD 1,064 USD 136 02/01/07 -- HKD 5,241 USD 671 02/01/07 (1) HKD 8,641 USD 1,116 03/21/07 7 JPY 32,843 USD 269 02/01/07 (3) JPY 35,767 USD 293 02/01/07 (3) JPY 20,511 USD 169 02/02/07 (1) JPY 41,355 USD 340 02/02/07 (3) JPY 53,320 USD 437 02/02/07 (4) JPY 42,770 USD 354 02/05/07 (1) JPY 143,758 USD 1,190 02/05/07 (2) JPY 685,840 USD 5,672 02/23/07 (29) JPY 100,000 USD 878 03/20/07 44 JPY 150,000 USD 1,282 03/20/07 31 JPY 200,000 USD 1,690 03/20/07 22 JPY 300,000 USD 2,584 03/20/07 82 JPY 400,000 USD 3,381 03/20/07 45 JPY 600,000 USD 4,967 03/20/07 (37) JPY 750,000 USD 6,590 03/20/07 335 JPY 900,000 USD 7,650 03/20/07 144 JPY 930,000 USD 8,171 03/20/07 415
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- JPY 130,531 USD 1,122 03/22/07 33 JPY 539,879 USD 4,636 03/22/07 132 JPY 661,081 USD 5,681 03/22/07 165 JPY 722,777 USD 6,209 03/22/07 180 JPY 907,333 USD 7,714 03/22/07 145 JPY 1,708,997 USD 14,687 03/22/07 430 JPY 2,449,704 USD 21,056 03/22/07 619 JPY 3,059,617 USD 26,279 03/22/07 754 NZD 27 USD 19 03/21/07 -- NZD 47 USD 32 03/21/07 -- SEK 6,853 USD 1,000 03/21/07 11 SEK 11,705 USD 1,709 03/21/07 20 SEK 58,500 USD 8,545 03/21/07 103 SEK 78,957 USD 11,521 03/21/07 128 SGD 326 USD 213 03/21/07 -- SGD 588 USD 383 03/21/07 (1) SGD 3,170 USD 2,067 03/21/07 (2) SGD 3,295 USD 2,149 03/21/07 (2) SGD 3,954 USD 2,580 03/21/07 (1) SGD 6,405 USD 4,179 03/21/07 (3) SGD 6,590 USD 4,299 03/21/07 (3) SGD 7,051 USD 4,598 03/21/07 (5) SGD 9,885 USD 6,448 03/21/07 (4) SGD 10,640 USD 6,936 03/21/07 (9) SGD 11,263 USD 7,340 03/21/07 (12) -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (5,711) ==============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. International Securities Fund 41 RUSSELL INVESTMENT COMPANY INTERNATIONAL SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INDEX SWAP CONTRACTS - --------------------------------------------------------------------------------------------------------------------------- UNREALIZED APPRECIATION FUND RECEIVES COUNTER NOTIONAL FUND PAYS TERMINATION (DEPRECIATION) UNDERLYING SECURITY PARTY AMOUNT FLOATING RATE DATE $ - ------------------------------ ---------------- --------- ----------------------- -------------- ---------------- MSCI Belgium Local Net Total Return 1 Month EUR LIBOR plus Index Merrill Lynch EUR 5,689 0.15% 06/20/07 (40) MSCI Belgium Local Net Total Return 1 Month EUR LIBOR plus Index Merrill Lynch EUR 877 0.15% 06/20/07 (6) MSCI Belgium Local Net Total Return 1 Month EUR LIBOR plus Index Merrill Lynch EUR 562 0.15% 09/19/07 (4) ---------------- Total Unrealized Appreciation (Depreciation) on Open Index Swap Contracts (50) ================
% OF MARKET NET VALUE INDUSTRY DIVERSIFICATION ASSETS $ - ----------------------------------------------------------------------------- Auto and Transportation 6.7 260,373 Consumer Discretionary 8.9 344,333 Consumer Staples 8.6 333,692 Financial Services 25.7 996,314 Health Care 5.9 229,322 Integrated Oils 4.5 173,981 Materials and Processing 10.3 403,123 Miscellaneous 0.9 32,452 Other Energy 0.6 22,263 Producer Durables 6.2 240,461 Technology 3.4 130,208 Utilities 9.1 350,980 Options Purchased 0.1 1,999 Warrants & Rights 0.2 6,724 Short-Term Investments 8.7 335,072 Other Securities 19.4 751,724 ------------ ------------ Total Investments 119.2 4,613,021 Other Assets and Liabilities, Net (19.2) (744,631) ------------ ------------ Net Assets 100.0 3,868,390 ============ ============ % OF MARKET NET VALUE GEOGRAPHIC DIVERSIFICATION ASSETS $ - ----------------------------------------------------------------------------- Africa 0.2 6,128 Asia 8.6 329,007 Europe 43.0 1,669,626 Japan 17.1 662,333 Latin America 2.7 106,654 United Kingdom 17.8 686,771 Other Regions 10.4 400,778 Other Securities 19.4 751,724 ------------ ------------ Total Investments 119.2 4,613,021 Other Assets and Liabilities, Net (19.2) (744,631) ------------ ------------ Net Assets 100.0 3,868,390 ============ ============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 42 International Securities Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 91.6% Austria - 0.2% Raiffeisen International Bank Holding AG 8,900 1,359 ------------ Bermuda - 0.6% Aquarius Platinum, Ltd. 20,500 535 Brilliance China Automotive Holdings, Ltd. (AE) 616,000 129 Credicorp, Ltd. (N) 73,409 3,099 Shangri-La Asia, Ltd. 506,000 1,358 Sinofert Holdings, Ltd. 3,604,000 1,680 TPV Technology, Ltd. 196,000 121 ------------ 6,922 ------------ Brazil - 8.5% All America Latina Logistica SA 254,900 2,760 Aracruz Celulose SA - ADR (N) 26,700 1,479 Banco do Brasil SA 273,400 8,946 Banco Itau Holding Financeira SA - ADR (N) 91,500 3,383 Brasil Telecom Participacoes SA - ADR 65,400 2,757 Centrais Eletricas Brasileiras SA 201,405,400 4,741 Cia Brasileira de Distribuicao Grupo Pao de Acucar - ADR (N) 78,400 2,583 Cia de Bebidas das Americas - ADR 34,700 1,795 Cia de Saneamento Basico do Estado de Sao Paulo 52,500,000 6,674 Cia de Saneamento Basico do Estado de Sao Paulo - ADR (N) 30,633 964 Cia Siderurgica Nacional SA 137,033 4,444 Cia Vale do Rio Doce - ADR 402,200 11,555 Cia Vale do Rio Doce - ADR (N) 216,700 7,353 Companhia de Saneamento de Minas Gerais 72,000 803 Cyrela Brazil Realty SA 149,800 1,386 EDP - Energias do Brasil SA 104,500 1,555 Empresa Brasileira de Aeronautica SA - ADR (N) 22,600 916 Gerdau SA 7,300 104 Gerdau SA - ADR (N) 520,500 8,797 Gol Linhas Aereas Inteligentes SA - ADR (N) 48,700 1,466 Lojas Renner SA 7,500 105 Natura Cosmeticos SA 282,300 3,814 Perdigao SA 100,309 1,275 Petroleo Brasileiro SA - ADR 143,100 13,344 Souza Cruz SA 2,400 45 Tele Norte Leste Participacoes SA - ADR (N) 263,000 3,548 Unibanco - Uniao de Bancos Brasileiros SA 343,800 3,223 Unibanco - Uniao de Bancos Brasileiros SA - ADR 78,400 7,435
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- ------------ 107,250 ------------ Canada - 0.2% First Quantum Minerals, Ltd. 32,900 1,745 ------------ Cayman Islands - 1.1% Agile Property Holdings, Ltd. 1,712,000 1,399 ASM Pacific Technology 296,500 1,789 China Resources Land, Ltd. 396,000 398 Focus Media Holding, Ltd. - ADR (AE)(N) 19,700 1,628 Foxconn International Holdings, Ltd. (AE) 385,000 1,151 Global Bio-Chem Technology Group Co., Ltd. 114,000 33 Hutchison Telecommunications International, Ltd. (AE) 727,000 1,751 Kingboard Chemical Holdings, Ltd. 422,500 1,740 Luen Thai Holdings, Ltd. 1,628,000 265 Shui On Land, Ltd. New (AE) 1,410,000 1,188 Sina Corp./China (AE)(N) 34,100 1,220 Solomon Systech International, Ltd. 2,938,100 542 Tencent Holdings, Ltd. 245,000 952 ------------ 14,056 ------------ Chile - 0.6% Banco de Credito e Inversiones 46,400 1,516 Banco Santander Chile SA - ADR 59,000 2,918 Coca-Cola Embonor SA - ADR 97,500 1,030 Embotelladora Andina SA - ADR 62,100 1,126 Lan Airlines SA - ADR (N) 18,600 1,154 ------------ 7,744 ------------ China - 7.0% Angang Steel Co., Ltd. Class H 668,000 1,046 Anhui Conch Cement Co., Ltd. Class H 788,000 2,660 Bank of Communications Co., Ltd. Class H 970,000 1,047 Byd Co., Ltd. Class H (AE) 45,500 160 China Coal Energy Co. (AE) 2,257,600 1,709 China COSCO Holdings Co., Ltd. Class H 3,133,000 2,275 China International Marine Containers Co., Ltd. Class B 350,330 729 China Life Insurance Co., Ltd. Class H 1,113,000 3,250 China Merchants Bank Co., Ltd. (AE) 694,000 1,497
Emerging Markets Fund 43 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- China Petroleum & Chemical Corp. - ADR (N) 56,260 4,706 China Petroleum & Chemical Corp. Class H 14,431,254 12,070 China Shenhua Energy Co., Ltd. 3,439,000 8,413 China Shipping Container Lines Co., Ltd. Class H 1,309,000 402 China Shipping Development Co., Ltd. Class H 1,658,000 2,336 China Southern Airlines Co., Ltd. Class H (AE) 1,786,000 830 China Telecom Corp., Ltd. Class H 12,005,000 5,797 Datang International Power Generation Co., Ltd. Class H 2,058,000 2,090 Guangzhou R&F Properties Co., Ltd. 1,146,000 2,214 Huaneng Power International, Inc. Class H 1,312,000 1,188 Industrial & Commercial Bank of China (AE) 4,517,900 2,621 Jiangxi Copper Co., Ltd. Class H 682,000 693 Maanshan Iron & Steel Class H 2,181,600 1,392 PetroChina Co., Ltd. - ADR (N) 18,523 2,284 PetroChina Co., Ltd. Class H 12,637,176 15,490 Ping An Insurance Group Co. of China, Ltd. Class H 1,051,100 5,075 Shanghai Forte Land Co., Ltd. Class H 1,970,000 732 Shenzhen Expressway Co., Ltd. Class H 270,000 198 Sinopec Shanghai Petrochemical Co., Ltd. Class H 2,519,000 1,233 Sinopec Yizheng Chemical Fibre Co., Ltd. Class H (AE) 628,000 150 Weiqiao Textile Co. Class H 414,500 621 Wumart Stores, Inc. Class H 703,200 620 Yanzhou Coal Mining Co., Ltd. Class H 2,420,000 2,250 ZTE Corp. Class H 185,500 836 ------------ 88,614 ------------ Colombia - 0.4% BanColombia SA 309,722 2,283 BanColombia SA - ADR (N) 99,800 2,969 ------------ 5,252 ------------ Czech Republic - 0.0% Philip Morris CR (AE) 276 142 ------------ Egypt - 1.9% Commercial International Bank 93,384 869 Egyptian Co. for Mobile Services 129,940 3,991 Orascom Construction Industries 178,108 8,128 Orascom Construction Industries - GDR 39,700 3,613 Orascom Telecom Holding SAE 50,103 3,442
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Orascom Telecom Holding SAE - GDR (N) 50,800 3,505 ------------ 23,548 ------------ Hong Kong - 3.1% Beijing Enterprises Holdings, Ltd. 944,000 2,055 China Everbright, Ltd. (AE) 380,000 365 China Insurance International Holdings Co., Ltd. (AE) 1,550,000 1,826 China Merchants Holdings International Co., Ltd. 517,000 1,894 China Mobile, Ltd. 1,373,500 12,596 China Mobile, Ltd. - ADR (N) 87,600 4,043 China Netcom Group Corp. Hong Kong, Ltd. 1,762,000 4,392 China Overseas Land & Investment, Ltd. 1,694,000 1,872 China Resources Enterprise 702,000 2,189 China Resources Power Holdings Co. 316,000 495 Citic Pacific, Ltd. 349,000 1,223 Denway Motors, Ltd. 2,982,000 1,257 Guangdong Investment, Ltd. 610,000 311 Guangzhou Investment Co., Ltd. 4,256,000 981 Melco International Development 291,000 616 Shanghai Industrial Holdings, Ltd. 68,000 147 Shenzhen Investment, Ltd. 1,638,000 667 Techtronic Industries Co. 1,340,400 2,060 Travelsky Technology, Ltd. Class H 200,000 336 ------------ 39,325 ------------ Hungary - 1.4% Magyar Telekom Telecommunications PLC 623,160 3,179 MOL Hungarian Oil and Gas PLC 97,747 10,077 MOL Hungarian Oil and Gas PLC - ADR 31,000 3,162 Richter Gedeon Nyrt. (N) 7,100 1,427 ------------ 17,845 ------------ India - 6.3% Allahabad Bank 243,535 499 Andhra Bank 429,000 855 Bajaj Auto, Ltd. 18,900 1,186 Bank of Baroda 220,000 1,245 Bank of India 30,000 130 BF Utilities, Ltd. (AE) 16,892 1,110 Bharti Tele Ventures, Ltd. (AE) 503,300 8,083 Chennai Petroleum Corp., Ltd. 194,660 945 Container Corp. of India 35,045 1,595
44 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Financial Technologies India, Ltd. 33,600 1,352 GAIL India, Ltd. - GDR 63,000 2,375 Gateway Distriparks, Ltd. 124,867 549 Genesis Indian Investment Co., Ltd. (AE) 619,019 23,027 Grasim Industries, Ltd. 2,793 176 Gujarat Ambuja Cements, Ltd. 522,000 1,623 HDFC Bank, Ltd. - ADR (N) 27,200 2,076 Hindustan Petroleum Corp., Ltd. 24,261 171 Housing Development Finance Corp. 78,100 2,960 I-Flex Solutions, Ltd. 38,900 1,713 ICICI Bank, Ltd. 234,120 4,989 Indiabulls Financial Services, Ltd. 58,232 483 Indiabulls Real Estate, Ltd. (AE) 58,232 467 Indian Overseas Bank 250,000 672 Industrial Development Bank of India, Ltd. 471,000 1,083 Infosys Technologies, Ltd. 976 50 Mahanagar Telephone Nigam 27,692 104 Maruti Udyog, Ltd. 5,827 122 Oil & Natural Gas Corp., Ltd. 72,735 1,501 Oriental Bank of Commerce 111,000 543 Petronet LNG, Ltd. (AE) 846,900 1,000 Reliance Industries, Ltd. 129,810 4,017 State Bank of India, Ltd. - GDR 66,950 4,345 Sun TV, Ltd. 59,191 2,266 Suzlon Energy, Ltd. 107,505 2,782 Tata Consultancy Services, Ltd. 4,333 125 Union Bank of India 118,000 297 Videocon Industries, Ltd. 137,300 1,371 Zee Entertainment Enterprises, Ltd. 278,963 1,979 ------------ 79,866 ------------ Indonesia - 3.2% Aneka Tambang Tbk PT 3,141,646 2,693 Astra Agro Lestari Tbk PT 301,289 437 Astra International Tbk PT 1,987,277 3,243 Bank Central Asia Tbk PT 207,500 116 Bank Danamon Indonesia Tbk PT 1,441,200 934 Bank Mandiri Persero Tbk PT 12,764,403 3,612 Bank Rakyat Indonesia 18,616,572 10,843 Perusahaan Gas Negara PT 1,651,000 1,705 Ramayana Lestari Sentosa Tbk PT 5,957,500 563 Telekomunikasi Indonesia Tbk PT 13,544,200 14,065 Telekomunikasi Indonesia Tbk PT - ADR 61,600 2,585 ------------ 40,796 ------------ Israel - 2.2% Bank Hapoalim BM 974,800 4,522 Bank Leumi Le-Israel BM 1,186,500 4,653 Check Point Software Technologies (AE)(N) 292,307 6,974 Discount Investment Corp. 2,511 73 IDB Development Corp., Ltd. 8,867 286 Israel Chemicals, Ltd. 471,100 2,907
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Partner Communications 10,436 129 Tadiran Communications, Ltd. 13,949 562 Teva Pharmaceutical Industries, Ltd. - ADR (N) 204,400 7,174 ------------ 27,280 ------------ Kazakhstan - 0.3% Halyk Savings Bank Kazakhstan - GDR (AE) 120,000 2,832 Kazkommertsbank - GDR (AE) 55,300 1,233 ------------ 4,065 ------------ Lebanon - 0.0% Solidere - GDR 8,200 137 ------------ Luxembourg - 2.3% Genesis Smaller Companies 381,784 24,651 Tenaris SA 1 -- Tenaris SA - ADR 80,565 3,825 ------------ 28,476 ------------ Malaysia - 1.5% AirAsia BHD (AE) 2,220,300 913 Bumiputra-Commerce Holdings BHD 3,615,342 9,502 Bursa Malaysia BHD 410,400 1,290 DRB-Hicom BHD 184,700 106 Gamuda BHD 57,300 116 Genting BHD 57,400 623 Golden Hope Plantations BHD 33,700 63 IGB Corp. BHD 104,800 68 IOI Corp. BHD 333,700 1,754 KLCC Property Holdings BHD 256,000 233 Malaysia International Shipping Corp. BHD (AE) 43,700 111 Petronas Gas BHD 39,500 102 PLUS Expressways BHD (AE) 137,100 112 Sime Darby BHD 795,700 1,864 SP Setia BHD 167,500 287 TAN Chong Motor Holdings BHD 627,100 240 Tenaga Nasional BHD 525,800 1,848 YTL Corp. BHD 127,300 269 ------------ 19,501 ------------ Mexico - 6.8% Alfa SAB de CV Class A (N) 781,800 5,326 America Movil SA de CV (N) 3,918,700 8,712 America Movil SA de CV Series L 269,500 11,955 Cemex SAB de CV (AE)(N) 4,215,756 14,916 Cemex SAB de CV - ADR (AE) 24,000 849
Emerging Markets Fund 45 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Corporacion Moctezuma SA de CV 365,800 964 Fomento Economico Mexicano SA de CV - ADR 31,724 3,809 Grupo Aeroportuario del Pacifico SA de CV - ADR 28,100 1,137 Grupo Aeroportuario del Sureste SAB de CV - ADR (N) 21,700 944 Grupo Financiero Banorte SA de CV Class O (N) 1,527,400 6,076 Grupo Mexico SAB de CV 884,400 3,634 Grupo Modelo SA (N) 890,300 4,846 Grupo Televisa SA (N) 454,500 2,684 Grupo Televisa SA - ADR 82,392 2,427 Kimberly-Clark de Mexico SAB de CV Class A 24,500 105 Organizacion Soriana SAB de CV Class B (N) 144,000 1,193 Telefonos de Mexico SA de CV (N) 1,859,900 2,859 Telefonos de Mexico SA de CV Series L 48,000 1,474 Urbi Desarrollos Urbanos SA de CV (AE)(N) 1,543,600 5,500 Wal-Mart de Mexico SA de CV 991,700 4,401 Wal-Mart de Mexico SA de CV - ADR (N) 71,700 3,162 ------------ 86,973 ------------ Netherlands - 0.6% Pyaterochka Holding NV - GDR (AE) 228,063 6,215 Zentiva NV 26,900 1,621 ------------ 7,836 ------------ Oman - 0.1% Bank Muscat SAOG - GDR 178,200 2,290 ------------ Pakistan - 0.6% Engro Chemical Pakistan, Ltd. 1,002,800 3,062 Fauji Fertilizer Co., Ltd. 1,895,322 3,499 ICI Pakistan, Ltd. 265,200 562 Pakistan Telecommunication Co., Ltd. 1,152,923 1,049 ------------ 8,172 ------------ Philippines - 0.7% Globe Telecom, Inc. 92,090 2,712 Philippine Long Distance Telephone Co. 75,300 4,050 Philippine Long Distance Telephone Co. - ADR (N) 45,600 2,399 ------------ 9,161 ------------ Poland - 0.6% Bank Pekao SA 29,393 2,453 Bank Zachodni WBK SA 2,631 235 KGHM Polska Miedz SA 105,849 3,216 Polski Koncern Naftowy Orlen 66,900 1,049
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Powszechna Kasa Oszczednosci Bank Polski SA 65,877 1,089 ------------ 8,042 ------------ Russia - 6.3% Kalina 15,100 672 LUKOIL - ADR 310,682 24,575 Magnit OAO (AE) 52,100 1,894 Mechel - ADR (N) 77,600 2,196 MMC Norilsk Nickel - ADR 34,433 5,819 Mobile Telesystems - ADR 165,900 8,985 NovaTek OAO - GDR (A) 45,000 2,430 Novolipetsk Steel - GDR 2,270 56 OAO Gazprom 250,000 2,698 OAO Gazprom - ADR (N) 87,011 3,737 OAO Gazprom - ADR 255,200 10,961 Promstroibank St. Petersburg 696,000 1,141 RBC Information Systems (AE) 135,259 1,555 Sberbank RF 2,745 9,059 Seventh Continent 69,600 1,810 TMK OAO (AE) 109,400 952 Unified Energy System - GDR 10,937 1,274 ------------ 79,814 ------------ South Africa - 7.2% ABSA Group, Ltd. 158,975 2,916 African Bank Investments, Ltd. 284,124 1,141 Alexander Forbes, Ltd. (AE) 376,300 844 Anglo Platinum, Ltd. 7,511 944 AngloGold Ashanti, Ltd. 22,600 1,070 AngloGold Ashanti, Ltd. - ADR (N) 28,134 1,322 Aspen Pharmacare Holdings, Ltd. (AE) 533,400 2,552 Aveng, Ltd. 787,269 4,213 Barloworld, Ltd. 163,375 4,208 Bidvest Group, Ltd. 89,400 1,671 Consol, Ltd. 547,200 1,428 DataTec, Ltd. 270,000 1,253 Edgars Consolidated Stores, Ltd. 405,900 2,271 FirstRand, Ltd. 285,782 910 Foschini, Ltd. 261,994 2,267 Impala Platinum Holdings, Ltd. 246,936 7,097 Investec, Ltd. 170,517 2,031 Lewis Group, Ltd. 20,097 175 Massmart Holdings, Ltd. 96,500 1,014 Metropolitan Holdings, Ltd. 414,744 872 Mittal Steel South Africa, Ltd. 35,835 536 Murray & Roberts Holdings, Ltd. 91,910 601 Nampak, Ltd. 79,926 247
46 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Naspers, Ltd. 139,500 3,517 Network Healthcare Holdings, Ltd. (AE) 1,253,000 2,533 Pick'n Pay Stores, Ltd. 173,454 808 Pretoria Portland Cement Co., Ltd. 34,900 2,039 Reunert, Ltd. 117,668 1,385 Sanlam, Ltd. 2,657,382 6,863 Sasol, Ltd. 294,500 10,009 Standard Bank Group, Ltd. 1,039,896 14,255 Steinhoff International Holdings, Ltd. 757,700 2,613 Tiger Brands, Ltd. 149,901 3,576 Truworths International, Ltd. 440,564 2,098 ------------ 91,279 ------------ South Korea - 12.0% Amorepacific Corp. (AE) 4,724 2,820 CJ Home Shopping 15,703 1,079 Daewoo Engineering & Construction Co., Ltd. (AE) 11,820 223 Daewoo Shipbuilding & Marine Engineering Co., Ltd. (AE) 59,100 1,714 Daum Communications Corp. (AE)(N) 13,918 812 Dongbu Insurance Co., Ltd. 21,870 574 GS Engineering & Construction Corp. 32,324 2,678 Hanjin Shipping Co., Ltd. (AE)(N) 65,300 1,873 Hankook Tire Co., Ltd. (N) 305,997 4,485 Hanwha Chem Corp. (AE)(N) 157,670 2,068 Honam Petrochemical Corp. (AE) 41,100 3,322 Hynix Semiconductor, Inc. (AE) 54,000 1,792 Hyosung Corp. (N)(AE) 56,900 1,602 Hyundai Development Co. (AE) 58,100 3,067 Hyundai Heavy Industries (AE) 903 130 Hyundai Mipo Dockyard (AE) 9,434 1,177 Hyundai Mobis (AE) 42,727 3,463 Hyundai Motor Co. (N) 53,070 3,782 Hyundai Steel Co. (AE)(N) 89,920 3,142 Industrial Bank of Korea (AE)(N) 237,400 4,375 KCC Corp. 11,624 2,994 Kookmin Bank (AE) 183,106 14,567 Kookmin Bank - ADR 31,400 2,497 Korea Electric Power Corp. (AE) 230,880 10,398 Korea Electric Power Corp. - ADR (N) 24,940 570 Korea Investment Holdings Co., Ltd. 39,850 1,731 Korean Air Lines Co., Ltd. 1,769 63 KT Corp. 80,670 3,676 KT Corp. - ADR 17,100 395 KT&G Corp. 41,537 2,528 LG Household & Health Care, Ltd. 20,740 2,500 LG.Philips LCD Co., Ltd. (AE)(N) 27,000 753 LIG Non-Life Insurance Co., Ltd. (N) 35,500 571 Lotte Shopping Co., Ltd. 4,832 1,881 LS Cable, Ltd. 6,300 223 Orion Corp. (AE) 4,165 1,093 Poongsan Corp. (AE) 56,600 1,145 POSCO 24,981 8,743 Samsung Corp. (N) 89,580 2,883
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Samsung Electronics Co., Ltd. (N) 16,250 9,993 Samsung Electronics Co., Ltd. - GDR (p) 18,377 5,564 Samsung Electronics Co., Ltd. - GDR 15,259 3,517 Samsung Fire & Marine Insurance Co., Ltd. 29,150 4,892 Samsung Securities Co., Ltd. (N) 103,100 5,015 Shinhan Financial Group Co., Ltd. (AE)(N) 135,330 7,072 Shinsegae Co., Ltd. 8,930 5,179 SK Corp. 27,579 2,106 SK Telecom Co., Ltd. 13,620 2,893 SK Telecom Co., Ltd. - ADR 14,700 349 Tae Young Corp. (AE) 11,339 796 Woori Finance Holdings Co., Ltd. (AE)(N) 92,750 2,167 ------------ 152,932 ------------ Taiwan - 9.0% Acer, Inc. 473,514 891 Advantech Co., Ltd. 1,106,948 3,496 Asia Cement Corp. 960,640 915 AU Optronics Corp. 2,746,280 3,645 AU Optronics Corp. - ADR (N) 127,617 1,714 Benq Corp. (AE) 2,016,000 992 Cathay Financial Holding Co., Ltd. 934,245 2,071 China Steel Corp. 6,538,920 6,752 China Steel Corp. - GDR 39,673 807 Chunghwa Telecom Co., Ltd. 198,120 380 CMC Magnetics Corp. (AE) 6,621,000 2,131 Compal Electronics, Inc. (AE) 2,170,892 1,961 Compal Electronics, Inc. - GDR (AE) 34,470 152 D-Link Corp. 401,600 565 Delta Electronics, Inc. 1,182,850 3,862 Evergreen Marine Corp. Taiwan, Ltd. 810,870 451 Far Eastern Textile Co., Ltd. 1,348,995 1,139 Faraday Technology Corp. 317,987 714 First Financial Holding Co., Ltd. 363,300 265 Formosa Plastics Corp. 1,168,000 1,965 Foxconn Technology Co., Ltd. 213,900 2,553 Gigabyte Technology Co., Ltd. 183,718 137 High Tech Computer Corp. 347,200 5,140 HON HAI Precision Industry Co., Ltd. 1,848,372 12,630 King Yuan Electronics Co., Ltd. 1,352,000 1,041 Macronix International (AE) 3,242,086 1,319 MediaTek, Inc. 565,200 6,162 Mega Financial Holding Co., Ltd. 3,651,000 2,445 Micro-Star International Co., Ltd. 884,470 650 Mitac International 1,435,935 1,744 Nan Ya Plastics Corp. 1,269,710 2,094
Emerging Markets Fund 47 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Oriental Union Chemical Corp. 68,000 43 Phoenixtec Power Co., Ltd. 565,629 606 POU Chen Corp. 648,000 693 Powerchip Semiconductor Corp. 1 -- Powertech Technology, Inc. 409,000 1,702 Quanta Computer, Inc. 268,710 454 Realtek Semiconductor Corp. (AE) 560,000 898 Ritek Corp. (AE) 2,653,161 681 Siliconware Precision Industries Co. 3,310,625 5,490 Sysware Corp. 64,441 67 Taiwan Cement Corp. 673,357 577 Taiwan Fertilizer Co., Ltd. 63,000 112 Taiwan Mobile Co., Ltd. 2,204,520 2,136 Taiwan Semiconductor Manufacturing Co., Ltd. 8,175,986 16,736 Taiwan Semiconductor Manufacturing Co., Ltd. - ADR (N) 68,391 746 Teco Electric and Machinery Co., Ltd. 1,415,000 692 Tripod Technology Corp. 194,000 769 U-Ming Marine Transport Corp. 715,000 1,036 Uni-President Enterprises Corp. 2,601,000 2,370 United Microelectronics Corp. 5,867,935 3,680 Vanguard International Semiconductor Corp. 1,965,947 1,463 Walsin Lihwa Corp. (AE) 235,000 116 Wintek Corp. 797,630 719 Yieh Phui Enterprise 807,430 336 Yuanta Core Pacific Securities Co. 2,249,000 1,701 ------------ 114,606 ------------ Thailand - 1.6% Airports of Thailand PCL 1,297,400 1,885 Bank of Ayudhya PCL 6,588,900 3,470 Charoen Pokphand Foods PCL 4,318,500 574 CP 7-Eleven PCL 4,849,200 802 Glow Energy PCL 942,500 902 Precious Shipping PCL 136,200 171 PTT Chemical PCL 1,243,032 2,683 PTT PCL 647,600 3,709 Rayong Refinery PCL (AE) 1,780,600 804 Regional Container Lines PCL 962,600 540 Siam City Bank PCL 178,400 83 Siam Commercial Bank PCL 1,077,400 1,829 Thai Airways International PCL 36,100 46 Thai Beverage PCL 16,080,300 2,880 ------------ 20,378 ------------ Turkey - 2.6% Akcansa Cimento AS 75,895 507 Anadolu Efes Biracilik Ve Malt Sanayii AS 194,545 6,363 BIM Birlesik Magazalar AS 21,300 1,264 Cimsa Cimento Sanayi VE Tica 263,875 1,726 Eregli Demir ve Celik Fabrikalari TAS 504,954 3,806 Ford Otomotiv Sanayi AS 143,300 1,365 Hurriyet Gazetecilik AS 461,300 1,358
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Ihlas Holding AS (AE) 816,246 290 Migros Turk TAS (AE) 230,523 3,032 Trakya Cam Sanayi AS 281,839 814 Tupras Turkiye Petrol Rafine 140,585 2,499 Turk Hava Yollari (AE) 105,752 549 Turk Sise ve Cam Fabrikalari AS (AE) 14,831 59 Turkiye Garanti Bankasi AS 536,600 2,022 Turkiye Is Bankasi Class C 976,590 4,652 Ulker Gida Sanayi ve Ticaret AS 10,228 29 Vestel Elektronik Sanayi ve Ticaret AS (AE) 114,575 285 Yapi ve Kredi Bankasi (AE) 1,458,077 2,840 ------------ 33,460 ------------ United Kingdom - 1.7% Anglo American PLC 263,496 12,277 Astro All Asia Networks PLC 666,200 1,028 Hikma Pharmaceuticals PLC New 195,100 1,410 Kazakhmys PLC 55,800 1,148 SABMiller PLC 77,500 1,771 Tanjong PLC 19,200 81 Tullow Oil PLC 567,900 4,446 ------------ 22,161 ------------ United States - 1.0% CTC Media, Inc. (AE)(N) 55,700 1,198 NII Holdings, Inc. (AE)(N) 24,500 1,808 Southern Copper Corp. (N) 151,859 9,491 ------------ 12,497 ------------ Venezuela - 0.0% Siderurgica Venezolana Sivensa SACA (AE) 1,306,495 29 ------------ Zimbabwe - 0.0% Delta Corp., Ltd. (B) 1,322,627 270 ------------ TOTAL COMMON STOCKS (cost $777,826) 1,163,823 ------------
48 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- PREFERRED STOCKS - 5.2% Brazil - 4.0% Banco Bradesco SA 74,637 3,032 Banco Itau Holding Financeira SA 160,210 5,921 Braskem SA 419,235 3,065 Centrais Eletricas Brasileiras SA 275,316,500 6,222 Cia Brasileira de Distribuicao Grupo Pao de Acucar 39,980,000 1,308 Cia de Tecidos do Norte de Minas - Coteminas 7,256,440 838 Cia Energetica de Minas Gerais 6,500,000 311 Cia Energetica de Sao Paulo (AE) 169,500,000 1,971 Cia Paranaense de Energia (AE) 98,100,000 1,193 Cia Vale do Rio Doce 13,944 394 Duratex SA (AE) 19,200 366 Gerdau SA 19,400 327 Investimentos Itau SA 222,400 1,230 Petroleo Brasileiro SA 374,000 8,253 Tam SA 58,400 1,889 Usinas Siderurgicas de Minas Gerais SA 359,600 13,578 Weg SA 164,800 1,187 ------------ 51,085 ------------ Chile - 0.0% Embotelladora Andina SA 205,300 612 ------------ Colombia - 0.0% BanColombia SA 7,200 54 ------------ Russia - 0.2% Transneft OAO 870 2,062 ------------ South Korea - 1.0% Hyundai Motor Co. 4,520 186 Samsung Electronics Co., Ltd. 24,919 11,698 ------------ 11,884 ------------ TOTAL PREFERRED STOCKS (cost $43,645) 65,697 ------------
NOTIONAL MARKET AMOUNT VALUE $ $ - ----------------------------------------------------------------------------- OPTIONS PURCHASED - 0.2% (Number of Contracts) Brazil - 0.0% Bovespa Index Futures Feb 2007 43,200.00 (BRL) Call (50) 1,017 43 Feb 2007 44,162.84 (BRL) Call (270) 5,614 108 ------------ 151 ------------ South Korea - 0.2% Kospi Index Futures Mar 2007 152.00 (KRW) Call (96) 7,749 1,877 ------------ TOTAL OPTIONS PURCHASED (cost $1,961) 2,028 ------------
PRINCIPAL AMOUNT ($) OR SHARES ------------ SHORT-TERM INVESTMENTS - 2.5% United States - 2.5% Russell Investment Company Money Market Fund 29,903,000 29,903 United States Treasury Bills (c)(z)(sec.) 4.969% due 03/15/07 2,200 2,188 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $32,091) 32,091 ------------ OTHER SECURITIES - 5.2% Russell Investment Company Money Market Fund (X) 16,403,466 16,403 State Street Securities Lending Quality Trust (X) 50,013,030 50,013 ------------ OTHER SECURITIES (cost $66,416) 66,416 ------------ TOTAL INVESTMENTS - 104.7% (identified cost $921,939) 1,330,055 OTHER ASSETS AND LIABILITIES, NET - (4.7%) (59,729) ------------ NET ASSETS - 100.0% 1,270,326 ============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. Emerging Markets Fund 49 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Hang Seng Index (Hong Kong) expiration date 02/07 (89) 7,292 (64) JSE-40 Index (South Africa) expiration date 03/07 (190) 6,033 272 MSCI Taiwan Index expiration date 02/07 (230) 7,215 (70) --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 138 ===============
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Brazil Bovespa Index Futures Feb 2007 43,200.00 (BRL) Put (50) 1,017 (7) Feb 2007 44,162.84 (BRL) Put (270) 5,614 (38) South Korea Kospi 200 Index Futures Mar 2007 152.00 (KRW) Put (96) 7,749 (598) --------------- Total Liability for Options Written (premiums received $565) (643) ===============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 50 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 924 BRL 2,000 03/20/07 10 USD 1,099 BRL 2,400 03/20/07 22 USD 2,286 BRL 5,000 03/20/07 51 USD 5,258 BRL 11,500 03/20/07 117 USD 72 GBP 37 02/01/07 -- USD 348 GBP 178 02/01/07 2 USD 124 GBP 63 02/02/07 -- USD 349 GBP 178 02/02/07 -- USD 1,232 HKD 9,621 02/05/07 -- USD 1,827 HKD 14,270 02/05/07 -- USD 73 HUF 14,436 02/01/07 1 USD 207 HUF 40,473 02/02/07 (1) USD 84 IDR 758,479 02/05/07 -- USD 434 KRW 400,000 03/20/07 (9) USD 1,066 KRW 1,000,000 03/20/07 (2) USD 3,589 KRW 3,300,000 03/20/07 (81) USD 9,111 KRW 8,400,000 03/20/07 (181) USD 1,119 MXN 12,352 02/01/07 4 USD 19 THB 686 02/01/07 1 USD 29 THB 1,044 02/02/07 1 USD 20 THB 732 02/05/07 1 USD 36 ZAR 258 03/20/07 (1) USD 576 ZAR 4,000 03/20/07 (25) USD 687 ZAR 5,000 03/20/07 2 USD 989 ZAR 7,000 03/20/07 (25) USD 1,759 ZAR 12,500 03/20/07 (37) USD 6,454 ZAR 45,742 03/20/07 (153) BRL 38 USD 18 02/01/07 -- BRL 51 USD 24 02/02/07 -- BRL 4,293 USD 2,018 02/02/07 (3) BRL 1,000 USD 456 03/20/07 (11) BRL 1,000 USD 457 03/20/07 (10) BRL 2,000 USD 917 03/20/07 (18) BRL 2,500 USD 1,163 03/20/07 (5) BRL 3,900 USD 1,784 03/20/07 (38) HKD 156 USD 20 02/01/07 -- HKD 1,670 USD 214 02/01/07 -- HKD 990 USD 127 02/01/07 -- HKD 17,879 USD 2,290 02/02/07 -- IDR 426,578 USD 47 02/05/07 -- IDR 460,720 USD 51 02/05/07 -- KRW 500,000 USD 533 03/20/07 1 KRW 500,000 USD 533 03/20/07 2 KRW 500,000 USD 543 03/20/07 11 KRW 500,000 USD 543 03/20/07 14
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- KRW 800,000 USD 853 03/20/07 2 KRW 1,000,000 USD 1,084 03/20/07 21 KRW 1,000,000 USD 1,080 03/20/07 17 KRW 2,100,000 USD 2,287 03/20/07 54 MYR 142 USD 40 02/02/07 -- MYR 124 USD 35 02/05/07 -- THB 63 USD 2 02/01/07 -- THB 2,452 USD 68 02/01/07 (2) THB 148 USD 4 02/02/07 -- THB 550 USD 15 02/02/07 -- THB 12,606 USD 351 02/02/07 (11) THB 544 USD 15 02/05/07 (1) THB 1,406 USD 39 02/05/07 (1) TRY 38 USD 27 02/02/07 -- ZAR 278 USD 38 02/07/07 -- ZAR 1,300 USD 183 03/20/07 4 ZAR 4,000 USD 559 03/20/07 8 ZAR 4,000 USD 542 03/20/07 (9) ZAR 4,000 USD 571 03/20/07 20 ZAR 4,200 USD 599 03/20/07 20 ZAR 5,000 USD 691 03/20/07 3 ZAR 7,000 USD 993 03/20/07 29 ZAR 9,000 USD 1,262 03/20/07 22 -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (184) ==============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. Emerging Markets Fund 51 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
% OF MARKET NET VALUE INDUSTRY DIVERSIFICATION ASSETS $ - ----------------------------------------------------------------------------- Auto and Transportation 3.5 44,317 Consumer Discretionary 4.6 58,802 Consumer Staples 5.2 65,834 Financial Services 23.2 294,982 Health Care 1.3 16,717 Integrated Oils 7.7 97,602 Materials and Processing 18.4 232,785 Miscellaneous 1.9 23,985 Other Energy 3.8 47,781 Producer Durables 1.7 21,875 Technology 10.2 130,007 Utilities 15.3 194,833 Options Purchased 0.2 2,028 Short-Term Investments 2.5 32,091 Other Securities 5.2 66,416 ------------ ------------ Total Investments 104.7 1,330,055 Other Assets and Liabilities, Net (4.7) (59,729) ------------ ------------ Net Assets 100.0 1,270,326 ============ ============
% OF MARKET NET VALUE GEOGRAPHIC DIVERSIFICATION ASSETS $ - ----------------------------------------------------------------------------- Africa 7.2 91,881 Asia 46.3 588,602 Europe 14.1 179,038 Latin America 22.2 281,640 Middle East 4.3 54,178 United Kingdom 1.7 22,244 Other Regions 3.7 46,056 Other Securities 5.2 66,416 ------------ ------------ Total Investments 104.7 1,330,055 Other Assets and Liabilities, Net (4.7) (59,729) ------------ ------------ Net Assets 100.0 1,270,326 ============ ============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 52 Emerging Markets Fund RUSSELL INVESTMENT COMPANY REAL ESTATE SECURITIES FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 97.7% Apartments - 18.1% Apartment Investment & Management Co. Class A (o) 414,025 25,930 Archstone-Smith Trust (o) 1,874,584 118,492 AvalonBay Communities, Inc. (o) 578,100 85,767 BRE Properties, Inc. Class A (o)(N) 192,500 13,361 Camden Property Trust (o) 357,800 28,052 Equity Residential (o)(N) 1,393,700 78,437 Essex Property Trust, Inc. (o)(N) 258,650 37,334 Home Properties, Inc. (o) 69,600 4,475 Mid-America Apartment Communities, Inc. (o) 124,200 7,467 United Dominion Realty Trust, Inc. (o)(N) 471,900 15,474 ------------ 414,789 ------------ Diversified - 5.0% Colonial Properties Trust (o) 156,200 7,677 iStar Financial, Inc. (o) 125,700 6,304 Spirit Finance Corp. (o)(N) 277,600 3,476 Vornado Realty Trust (o) 799,710 97,844 ------------ 115,301 ------------ Free Standing Retail - 0.2% Realty Income Corp. (o) 130,000 3,741 ------------ Health Care - 6.2% Health Care Property Investors, Inc. (o) 638,100 26,322 Health Care REIT, Inc. (o)(N) 536,500 25,113 Healthcare Realty Trust, Inc. (o)(N) 185,800 7,874 LTC Properties, Inc. (o) 266,800 7,524 Nationwide Health Properties, Inc. (o)(N) 1,255,500 41,833 Omega Healthcare Investors, Inc. (o) 288,900 5,238 Senior Housing Properties Trust (o) 258,100 6,716 Ventas, Inc. (o)(N) 473,200 21,885 ------------ 142,505 ------------ Industrial - 6.8% AMB Property Corp. (o) 620,600 37,764 DCT Industrial Trust, Inc. (o) 553,500 6,542 EastGroup Properties, Inc. (o) 70,200 3,843 First Potomac Realty Trust (o) 145,500 4,369 ProLogis (o) 1,608,500 104,553 ------------ 157,071 ------------ Lodging/Resorts - 8.5% Ashford Hospitality Trust, Inc. (o) 200,000 2,462 DiamondRock Hospitality Co. (o) 719,150 13,556 FelCor Lodging Trust, Inc. (o) 233,600 5,156
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Hilton Hotels Corp. 846,150 29,945 Hospitality Properties Trust (o) 67,000 3,270 Host Hotels & Resorts, Inc. (o)(N) 3,606,964 95,476 LaSalle Hotel Properties (o) 200,270 9,535 Starwood Hotels & Resorts Worldwide, Inc. (o) 580,975 36,357 ------------ 195,757 ------------ Manufactured Homes - 0.5% Equity Lifestyle Properties, Inc. (o)(N) 184,100 10,168 ------------ Mixed Industrial/Office - 1.7% Duke Realty Corp. (o) 56,800 2,506 Liberty Property Trust (o) 554,700 28,700 PS Business Parks, Inc. (o) 100,000 7,521 ------------ 38,727 ------------ Office - 17.0% Alexandria Real Estate Equities, Inc. (o)(N) 203,700 22,073 American Financial Realty Trust (o)(N) 355,300 3,972 BioMed Realty Trust, Inc. (o) 373,900 11,153 Boston Properties, Inc. (o)(N) 883,050 111,344 Brandywine Realty Trust (o)(N) 679,721 23,695 Brookfield Properties Corp. 688,800 32,057 Corporate Office Properties Trust (o)(N) 122,000 6,500 Douglas Emmett, Inc. (o) 140,100 3,833 Equity Office Properties Trust (o) 584,350 32,461 Highwoods Properties, Inc. (o) 271,200 11,851 HRPT Properties Trust (o) 590,300 7,686 Kilroy Realty Corp. (o) 229,300 19,912 Mack-Cali Realty Corp. (o) 327,600 18,228 Maguire Properties, Inc. (o) 76,600 3,328 Parkway Properties, Inc. (o)(N) 81,650 4,479 SL Green Realty Corp. (o) 531,700 77,937 ------------ 390,509 ------------ Regional Malls - 15.3% CBL & Associates Properties, Inc. (o) 114,500 5,373 General Growth Properties, Inc. (o) 810,600 49,868 Macerich Co. (The) (o) 730,700 69,804
Real Estate Securities Fund 53 RUSSELL INVESTMENT COMPANY REAL ESTATE SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Simon Property Group, Inc. (o) 1,671,900 191,249 Taubman Centers, Inc. (o) 609,956 35,542 ------------ 351,836 ------------ Self Storage - 5.6% Extra Space Storage, Inc. (o)(N) 579,600 11,441 Public Storage, Inc. (o) 1,022,100 111,164 Sovran Self Storage, Inc. (o) 92,400 5,544 ------------ 128,149 ------------ Shopping Centers - 11.0% Cedar Shopping Centers, Inc. (o) 140,000 2,345 Developers Diversified Realty Corp. (o)(N) 825,500 55,408 Federal Realty Investors Trust (o) 660,865 61,738 Kimco Realty Corp. (o)(N) 665,800 33,024 Kite Realty Group Trust (o) 129,900 2,533 Regency Centers Corp. (o) 956,600 83,320 Tanger Factory Outlet Centrs (o)(N) 197,400 8,014 Weingarten Realty Investors (o)(N) 139,900 6,926 ------------ 253,308 ------------ Specialty - 1.8% Digital Realty Trust, Inc. (o)(N) 936,930 33,673 Plum Creek Timber Co., Inc. (o) 200,000 8,050 ------------ 41,723 ------------ TOTAL COMMON STOCKS (cost $1,267,556) 2,243,584 ------------ SHORT-TERM INVESTMENTS - 2.5% Russell Investment Company Money Market Fund 58,114,000 58,114 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $58,114) 58,114 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- OTHER SECURITIES - 10.5% Russell Investment Company Money Market Fund (X) 59,722,833 59,723 State Street Securities Lending Quality Trust (X) 182,090,770 182,091 ------------ TOTAL OTHER SECURITIES (cost $241,814) 241,814 ------------ TOTAL INVESTMENTS - 110.7% (identified cost $1,567,484) 2,543,512 OTHER ASSETS AND LIABILITIES, NET - (10.7%) (245,061) ------------ NET ASSETS - 100.0% 2,298,451 ============
See accompanying notes which are an integral part of the schedules of investments. 54 Real Estate Securities Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- LONG-TERM INVESTMENTS - 71.6% Asset-Backed Securities - 21.6% ACE Securities Corp. (E) Series 2006-HE4 Class A2A 5.380% due 10/25/36 1,097 1,097 American Express Credit Account Master Trust (E) Series 2002-2 Class A 5.430% due 11/16/09 1,000 1,000 AmeriCredit Automobile Receivables Trust Series 2005-AX Class A3 3.630% due 01/06/10 1,010 1,005 Series 2006-RM Class A1 5.370% due 10/06/09 2,000 2,000 Argent Securities, Inc. (E) Series 2006-M2 Class A2A 5.370% due 09/25/36 403 402 Series 2006-W4 Class A2A 5.410% due 05/25/36 2,113 2,113 Asset Backed Funding Certificates (E) Series 2006-HE1 Class A2A 5.380% due 01/25/37 771 772 Asset Backed Securities Corp. Home Equity (E) Series 2002-HE1 Class M1 6.970% due 03/15/32 985 985 Asset Backed Securities Corp. Home Equity Loan Trust (E) Series 2004-HE6 Class A1 5.625% due 09/25/34 588 587 Banc of America Securities Auto Trust Series 2005-WF1 Class A4 4.080% due 04/18/10 3,000 2,947 Bank One Issuance Trust Series 2004-B2 Class B2 4.370% due 04/15/12 2,000 1,956 Bear Stearns Asset Backed Securities, Inc. (E) Series 2004-BO1 Class 1A1 5.520% due 09/25/34 179 179 BMW Vehicle Owner Trust Series 2004-A Class A4 3.320% due 02/25/09 4,950 4,904 Brazos Higher Education Authority, Inc. Series 2005-A Class A5 4.910% due 12/01/40 3,250 3,229 Cabela's Master Credit Card Trust (p) Series 2006-3A Class A1 5.260% due 10/15/14 2,000 1,991
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- California Infrastructure PG&E-1 Series 1997-1 Class A8 6.480% due 12/26/09 2,176 2,189 California Infrastructure SCE-1 Series 1997-1 Class A7 6.420% due 12/26/09 3,550 3,568 Capital Auto Receivables Asset Trust Series 2004-2 Class A2 3.350% due 02/15/08 1,250 1,246 Series 2005-1 Class A4 4.050% due 07/15/09 3,175 3,155 Series 2006-1 Class A3 5.030% due 10/15/09 2,225 2,215 Capital One Auto Finance Trust Series 2005-BSS Class A3 4.080% due 11/15/09 1,834 1,825 Capital One Master Trust Series 2002-2A Class A (E) 5.450% due 01/15/10 2,000 2,000 Series 2002-4A Class A 4.900% due 03/15/10 1,000 999 Capital One Prime Auto Receivables Trust Series 2004-3 Class A4 3.690% due 06/15/10 1,000 979 Series 2004-3 Class B 3.860% due 08/15/11 1,500 1,467 Carmax Auto Owner Trust Series 2004-2 Class A4 3.460% due 09/15/11 2,500 2,447 Series 2005-2 Class A4 4.340% due 08/15/10 2,000 1,962 Caterpillar Financial Asset Trust Series 2006-A Class A3 5.570% due 05/25/10 2,000 2,007 Centex Home Equity Series 2003-C Class AF4 4.960% due 04/25/32 136 135 Chase Credit Card Master Trust (E) Series 2002-1 Class A 5.420% due 06/15/09 2,900 2,900 Chase Manhattan Auto Owner Trust Series 2004-A Class A4 2.830% due 09/15/10 1,682 1,652 Series 2005-A Class A4 3.980% due 04/15/11 1,000 975 Series 2005-A Class CTFS 4.040% due 04/15/11 1,000 987 Series 2006-A Class A3 5.340% due 07/15/10 3,770 3,770
Short Duration Bond Fund 55 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- CIT Equipment Collateral Series 2004-VT1 Class A3 2.200% due 03/20/08 128 128 Series 2005-VT1 Class A3 4.120% due 08/20/08 753 749 CIT Marine Trust Series 1999-A Class A4 6.250% due 11/15/19 551 551 CIT Rv Trust Series 1998-A Class A5 6.120% due 11/15/13 237 237 Citibank Credit Card Issuance Trust Series 2003-A3 Class A3 3.100% due 03/10/10 1,000 976 Series 2003-A4 Class A4 (E) 5.435% due 03/20/09 5,000 5,000 Series 2004-A4 Class A4 3.200% due 08/24/09 3,700 3,656 Series 2005-A7 Class A7 4.750% due 10/22/12 3,725 3,674 Citigroup Mortgage Loan Trust, Inc. (E) Series 2006-WFH Class A1 5.390% due 08/25/36 735 735 Series 2006-WFH Class A1A 5.420% due 01/25/36 1,918 1,918 Community Program Loan Trust Series 1987-A Class A4 4.500% due 10/01/18 1,955 1,924 Countrywide Asset-Backed Certificates (E) Series 2001-BC3 Class A 5.830% due 12/25/31 153 153 Series 2006-15 Class A1 5.460% due 10/25/46 1,044 1,044 Series 2006-16 Class 2A1 5.370% due 12/25/46 447 447 Series 2006-17 Class 2A1 5.370% due 03/25/47 1,013 1,013 Series 2006-23 Class 2A1 5.428% due 11/25/37 4,600 4,599 Credit-Based Asset Servicing and Securitization LLC (E) Series 2006-CB9 Class A1 5.410% due 11/25/36 785 785 Daimler Chrysler Auto Trust Series 2005-A Class A3 3.490% due 12/08/08 1,163 1,157 Series 2005-A Class A4 3.740% due 02/08/10 9,100 8,951 Discover Card Master Trust I Series 2002-2 Class B 5.450% due 10/15/09 1,000 999
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- E-Trade RV and Marine Trust Series 2004-1 Class A3 3.620% due 10/08/18 1,300 1,251 Equity One ABS, Inc. Series 2003-4 Class M1 5.369% due 10/25/34 1,500 1,485 Fannie Mae Grantor Trust (E) Series 2002-T10 Class A1 5.590% due 06/25/32 4,175 4,175 First Franklin Mortgage Loan Asset Backed Certificates (E) Series 2006-FF1 Class A3 5.430% due 11/25/36 1,263 1,264 Series 2007-FF1 Class A2A 5.360% due 01/25/38 1,200 1,201 Ford Credit Auto Owner Trust Series 2005-A Class A3 3.480% due 11/15/08 4,006 3,982 Series 2005-B Class A4 4.380% due 01/15/10 1,500 1,481 Series 2005-B Class B 4.640% due 04/15/10 1,250 1,237 Series 2005-C Class B 4.520% due 09/15/10 1,000 983 Series 2006-A Class A3 5.050% due 03/15/10 535 533 Series 2006-B Class A3 5.260% due 10/15/10 545 544 Franklin Auto Trust Series 2003-1 Class A4 2.270% due 05/20/11 422 419 Fremont Home Loan Trust (E) Series 2006-E Class 2A1 5.410% due 01/25/37 700 700 GE Capital Credit Card Master Note Trust Series 2005-3 Class A 4.130% due 06/15/13 2,000 1,934 Series 2006-1 Class A 5.080% due 09/15/12 1,480 1,475 GE Commercial Equipment Financing LLC (E) Series 2004-1 Class B 5.550% due 12/20/15 468 469 GE Corporate Aircraft Financing LLC (E)(p) Series 2004-1A Class B 6.200% due 01/25/18 328 330
56 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- GE Dealer Floorplan Master Note Trust (E) Series 2004-2 Class B 5.640% due 07/20/09 1,000 1,001 GE-WMC Mortgage Securities LLC (E) Series 2006-1 Class A2A 5.360% due 08/25/36 426 426 GMAC Mortgage Corp. Loan Trust Series 2004-GH1 Class A2 4.390% due 12/25/25 1,346 1,333 GS Auto Loan Trust Series 2006-1 Class A3 5.370% due 12/15/10 1,300 1,300 GSAMP Trust (E) Series 2004-SEA Class A2A 5.640% due 03/25/34 482 482 Series 2007-FM1 Class A2A 5.390% due 12/25/36 900 900 Harley-Davidson Motorcycle Trust Series 2002-2 Class A2 3.090% due 06/15/10 977 972 Series 2003-4 Class A2 2.690% due 04/15/11 1,698 1,665 Series 2006-3 Class A3 5.240% due 01/15/12 4,850 4,844 Honda Auto Receivables Owner Trust Series 2003-3 Class A4 2.770% due 11/21/08 917 916 Series 2003-4 Class A4 2.790% due 03/16/09 556 552 Series 2003-5 Class A4 2.960% due 04/20/09 1,711 1,694 Series 2004-3 Class A4 3.280% due 02/18/10 2,300 2,248 Series 2005-2 Class A4 4.150% due 10/15/10 1,850 1,820 Series 2006-3 Class A3 5.120% due 10/15/10 1,250 1,245 Household Automotive Trust Series 2005-3 Class A2 4.700% due 01/20/09 603 603 Household Private Label Credit Card Master Note Trust I (E) Series 2002-2 Class A 5.490% due 01/18/11 5,000 5,001 HSI Asset Securitization Corp. Trust (E) Series 2006-HE2 Class 2A1 5.370% due 12/25/36 493 493 Hyundai Auto Receivables Trust Series 2004-A Class A3 2.970% due 05/15/09 423 419
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-A Class A3 3.980% due 11/16/09 1,500 1,484 Illinois Power Special Purpose Trust Series 1998-1 Class A6 5.540% due 06/25/09 913 913 Indymac Residential Asset Backed Trust (E) Series 2006-E Class 2A1 5.380% due 04/25/37 583 584 JP Morgan Mortgage Acquisition Corp. (E) Series 2006-WMC Class A2 5.370% due 08/25/36 523 522 Lehman XS Trust (E) Series 2006-9 Class A1A 5.420% due 05/25/46 430 430 Long Beach Auto Receivables Trust Series 2005-B Class A3 4.406% due 05/15/10 1,500 1,490 Long Beach Mortgage Loan Trust (E) Series 2004-4 Class 1A1 5.650% due 10/25/34 203 203 Marlin Leasing Receivables LLC (p) Series 2005-1A Class A3 4.630% due 11/17/08 1,650 1,639 Mastr Asset Backed Securities Trust (E) Series 2006-HE5 Class A1 5.410% due 11/25/36 900 901 MBNA Master Credit Card Trust (E) Series 2000-D Class A 5.520% due 09/15/09 3,460 3,461 Merrill Auto Trust Securitization Series 2005-1 Class A3 4.100% due 08/25/09 3,000 2,979 Merrill Lynch Mortgage Investors, Inc. (E) Series 2006-RM5 Class A2A 5.570% due 10/25/37 1,738 1,738 Nelnet Education Loan Funding, Inc. Series 2001-A Class A1 5.760% due 07/01/12 1,392 1,397 Nelnet Student Loan Trust (E) Series 2006-3 Class A1 5.338% due 09/25/12 600 600 Nissan Auto Lease Trust Series 2005-A Class A3 4.700% due 10/15/08 2,899 2,889
Short Duration Bond Fund 57 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Nissan Auto Receivables Owner Trust Series 2004-A Class A4 2.760% due 07/15/09 3,481 3,423 Series 2005-A Class A3 3.540% due 10/15/08 916 911 Series 2005-B Class A3 3.990% due 07/15/09 1,653 1,640 Nomura Home Equity Loan, Inc. Series 2006-AF1 Class A1 6.032% due 10/25/36 1,826 1,824 Onyx Acceptance Grantor Trust Series 2005-A Class A4 3.910% due 09/15/11 2,000 1,963 Option One Mortgage Loan Trust (E) Series 2007-1 Class 2A1 5.370% due 01/25/37 900 900 Park Place Securities, Inc. (E) Series 2004-MCW Class A1 5.632% due 10/25/34 2,588 2,590 PBG Equipment Trust (p) Series 1998-1A Class A 6.270% due 01/20/12 307 307 Peco Energy Transition Trust Series 1999-A Class A6 6.050% due 03/01/09 4,277 4,279 Series 2001-A Class A1 6.520% due 12/31/10 1,248 1,295 PG&E Energy Recovery Funding LLC Series 2005-1 Class A2 3.870% due 06/25/11 2,486 2,443 Series 2005-2 Class A1 4.850% due 06/25/11 969 963 Popular ABS Mortgage Pass-Through Trust Series 2005-3 Class AF3 4.437% due 07/25/35 2,000 1,967 Providian Gateway Master Trust (p) Series 2004-FA Class A 3.650% due 11/15/11 1,200 1,184 Public Service New Hampshire Funding LLC Series 2001-1 Class A2 5.730% due 11/01/10 803 806 Railcar Leasing LLC (p) Series 1997-1 Class A2 7.125% due 01/15/13 920 953 Residential Asset Mortgage Products, Inc. (E) Series 2006-RZ4 Class A1A 5.430% due 10/25/36 1,135 1,135 Residential Asset Securities Corp. (E) Series 2006-KS6 Class A1 5.360% due 08/25/36 592 592
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-KS9 Class AI1 5.420% due 11/25/36 1,055 1,055 Saxon Asset Securities Trust (E) Series 2006-3 Class A1 5.380% due 11/25/36 546 546 SBI Heloc Trust (E)(p) Series 2006-1A Class 1A2A 5.490% due 08/25/36 642 642 Securitized Asset Backed Receivables LLC Trust (E) Series 2007-HE1 Class A2A 5.380% due 12/25/36 1,200 1,199 SLM Student Loan Trust Series 2003-4 Class A5B (p) 3.390% due 03/15/33 3,000 2,893 Series 2006-10 Class A1 (E) 5.345% due 07/25/13 3,900 3,899 Soundview Home Equity Loan Trust (E) Series 2006-EQ1 Class A1 5.400% due 10/25/36 904 904 Series 2006-EQ2 Class A1 1.704% due 01/25/37 3,900 3,900 Structured Asset Securities Corp. (E) Series 2005-WF3 Class A1 5.450% due 07/25/35 322 322 Series 2006-BC3 Class A2 5.370% due 10/25/36 1,113 1,114 Susquehanna Auto Lease Trust (p) Series 2005-1 Class A3 4.430% due 06/16/08 4,000 3,975 Series 2005-1 Class B 4.710% due 07/14/08 1,700 1,686 Series 2006-1 Class A3 5.210% due 03/16/09 1,000 998 Toyota Auto Receivables Owner Trust Series 2003-B Class A4 2.790% due 01/15/10 2,980 2,977 Triad Auto Receivables Owner Trust Series 2006-A Class A3 4.770% due 01/12/11 2,000 1,987 USAA Auto Owner Trust Series 2004-2 Class A3 3.030% due 06/16/08 487 486 Series 2004-2 Class A4 3.580% due 02/15/11 1,700 1,679 Series 2005-2 Class A4 4.170% due 02/15/11 4,000 3,923
58 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-4 Class A2 5.160% due 11/16/09 4,000 3,992 Wachovia Auto Owner Trust Series 2004-A Class A3 3.190% due 06/20/08 292 291 Series 2004-A Class A4 3.660% due 07/20/10 7,500 7,429 Series 2004-B Class A3 2.910% due 04/20/09 1,743 1,726 Wells Fargo Financial Auto Owner Trust Series 2004-A Class A4 2.670% due 08/16/10 1,615 1,595 Wells Fargo Home Equity Trust (E) Series 2005-4 Class AI1 (p) 5.470% due 12/25/35 1,082 1,082 Series 2006-3 Class A1 5.380% due 01/25/37 600 600 Whole Auto Loan Trust Series 2003-1 Class B 2.240% due 03/15/10 11 11 World Omni Auto Receivables Trust Series 2006-A Class A2 5.050% due 10/15/08 1,565 1,564 ------------ 254,598 ------------ Certificate of Deposits - 1.0% Bank of Ireland 5.400% due 01/15/10 2,700 2,699 Fortis Bank 5.265% due 04/28/08 1,700 1,700 Nordea Bank Finland PLC 5.308% due 05/28/08 600 599 Royal Bank of Canada 5.420% due 06/30/08 1,600 1,599 Royal Bank of Scotland 5.290% due 07/03/08 2,400 2,399 Societe Generale 5.271% due 06/30/08 2,700 2,705 ------------ 11,701 ------------ Corporate Bonds and Notes - 20.2% Abbott Laboratories (N) 3.500% due 02/17/09 2,000 1,935 Allstate Financial Global Funding (p) 2.500% due 06/20/08 4,080 3,922 Altria Group, Inc. (N) 7.650% due 07/01/08 1,500 1,541 American Express Bank (E) Series BKNT 5.410% due 10/20/09 800 800
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- American Express Centurion Bank Series bknt (E) 5.320% due 05/07/08 700 700 Series BKNT 4.375% due 07/30/09 3,665 3,595 American Express Credit Corp. (E) 5.380% due 11/09/09 1,200 1,200 American Honda Finance Corp. (E)(p) 5.413% due 03/09/09 1,300 1,302 American International Group, Inc. 4.700% due 10/01/10 2,695 2,641 Ameritech Capital Funding Corp. 6.250% due 05/18/09 2,000 2,016 Anadarko Petroleum Corp. (E) 5.760% due 09/15/09 1,200 1,203 Associates Corp. of North America 6.250% due 11/01/08 (N) 3,274 3,323 8.550% due 07/15/09 750 805 AT&T, Inc. (E) 5.464% due 05/15/08 2,600 2,602 Bank of America Corp. 6.375% due 02/15/08 8,652 8,714 5.375% due 06/19/09 (E) 3,800 3,802 Bank One Corp. 2.625% due 06/30/08 5,675 5,469 BankAmerica Corp. 7.125% due 03/01/09 1,500 1,549 Bear Stearns Cos., Inc. (The) 2.875% due 07/02/08 4,700 4,546 5.465% due 08/21/09 (E) 2,300 2,302 5.350% due 02/01/12 2,000 1,995 Series MTNB (E) 5.454% due 03/30/09 900 901 BellSouth Corp. (E) 5.474% due 08/15/08 1,300 1,301 Calyon NY (E) Series YCD 5.340% due 01/16/09 1,200 1,200 Caterpillar, Inc. 7.250% due 09/15/09 3,150 3,292 CIT Group, Inc. 5.000% due 11/24/08 7,050 7,008 4.250% due 02/01/10 2,325 2,251 Citigroup Global Markets Holdings, Inc. (E) Series MTNM 5.390% due 03/07/08 1,600 1,601
Short Duration Bond Fund 59 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Citigroup, Inc. 5.416% due 01/30/09 (E) 2,200 2,201 6.200% due 03/15/09 (N) 5,700 5,802 5.393% due 12/28/09 (E) 2,100 2,100 4.625% due 08/03/10 1,500 1,469 Consolidated Edison Co. of New York, Inc. (N) Series B 7.150% due 12/01/09 2,000 2,091 Credit Suisse First Boston USA, Inc. (E) 5.483% due 12/09/08 3,500 3,506 DaimlerChrysler North America Holding Corp. (E) 5.820% due 08/03/09 800 802 Deutsche Bank Financial, Inc. 7.500% due 04/25/09 3,300 3,437 Exelon Generation Co. LLC 6.950% due 06/15/11 3,650 3,838 FleetBoston Financial Corp. 6.375% due 05/15/08 4,185 4,231 General Electric Capital Corp. 4.000% due 06/15/09 (N) 1,650 1,605 5.430% due 01/20/10 (E) 1,300 1,302 4.875% due 10/21/10 10,050 9,926 5.474% due 10/21/10 (E) 2,000 2,003 Series mtn (E) 5.390% due 10/26/09 1,400 1,400 General Electric Co. (E) 5.393% due 12/09/08 1,000 1,001 GMAC LLC (N) 6.000% due 12/15/11 100 99 Goldman Sachs Group, Inc. 7.350% due 10/01/09 1,000 1,050 5.760% due 10/07/11 (E)(N) 3,000 3,032 Series MTNB (E) 5.690% due 07/23/09 2,000 2,013 Hertz Vehicle Financing LLC (p) Series 2005-2A Class A2 4.930% due 02/25/10 2,500 2,479 HSBC Bank USA NA (E)(N) Series BKNT 5.493% due 06/10/09 300 301 HSBC Finance Corp. 6.500% due 11/15/08 10,130 10,327 5.506% due 12/05/08 (E) 300 301 John Deere Capital Corp. (E) 5.424% due 04/15/08 700 701 5.424% due 07/15/08 800 800 Lehman Brothers Holdings, Inc. 5.400% due 11/24/08 (E) 2,400 2,401 5.475% due 08/21/09 (E)(N) 1,000 1,001 7.875% due 08/15/10 1,000 1,074
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series MTNG 3.950% due 11/10/09 2,800 2,703 5.624% due 11/10/09 (E) 400 402 Lehman Brothers, Inc. (N) 6.625% due 02/15/08 1,500 1,513 Merrill Lynch & Co., Inc. 4.831% due 10/27/08 3,925 3,894 5.577% due 07/25/11 (E) 1,100 1,103 Series MTN (E) 5.464% due 08/14/09 800 800 Series MTNB (E) 5.466% due 01/30/09 1,100 1,101 Series MTNC 5.430% due 06/16/08 (E) 200 200 5.489% due 08/22/08 (E) 600 601 4.125% due 01/15/09 1,000 978 Metropolitan Life Global Funding I (p) 5.750% due 07/25/11 4,000 4,057 Morgan Stanley 3.625% due 04/01/08 3,000 2,938 5.390% due 11/21/08 (E) 600 600 3.875% due 01/15/09 2,000 1,949 Series GMTN (E) 5.485% due 02/09/09 700 701 Series MTN (E) 5.450% due 01/15/10 1,600 1,600 National City Bank Series BKNT 4.250% due 01/29/10 3,375 3,259 Northern States Power Co. 6.875% due 08/01/09 3,000 3,096 Ohio Edison Co. 4.000% due 05/01/08 3,685 3,617 Principal Life Global Funding I (p) 3.625% due 04/30/08 1,250 1,219 2.800% due 06/26/08 5,600 5,399 Prudential Financial, Inc. 3.750% due 05/01/08 1,475 1,438 SBC Communications, Inc. 4.125% due 09/15/09 5,330 5,171 SLM Corp. 3.625% due 03/17/08 7,200 7,059 Unicredito Italiano NY (E) Series YCD 5.370% due 05/29/08 800 798
60 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- US Bank NA Series BKNT 4.125% due 03/17/08 1,600 1,573 Wachovia Bank NA Series BKNT 4.375% due 08/15/08 2,250 2,217 Series DPNT (E) 5.406% due 03/23/09 500 500 Wachovia Corp. 5.625% due 12/15/08 8,200 8,247 5.506% due 10/15/11 (E) 3,400 3,404 Wal-Mart Stores, Inc. (E) 5.265% due 06/16/08 1,700 1,698 Wells Fargo & Co. 4.125% due 03/10/08 (N) 820 809 6.250% due 04/15/08 8,337 8,411 5.460% due 09/15/09 (E) 2,900 2,905 4.200% due 01/15/10 1,600 1,555 5.426% due 03/23/10 (E) 3,000 3,002 Westpac Banking Corp. (E) Series DPNT 5.280% due 06/06/08 500 500 Xcel Energy, Inc. 3.400% due 07/01/08 925 898 ------------ 237,724 ------------ International Debt - 4.4% ANZ National International, Ltd. (E)(p) 5.415% due 08/07/09 2,600 2,598 Arran Residential Mortgages Funding PLC (E)(A) Series 2006-1A Class A1B 5.340% due 04/12/36 733 733 Bank of Ireland (E) 5.375% due 12/19/08 1,200 1,200 Diageo Capital PLC (E) 5.546% due 11/10/08 1,400 1,401 DNB Nor Bank ASA (E)(p) 5.430% due 10/13/09 700 700 Eksportfinans A/S (N) 4.750% due 12/15/08 7,800 7,744 HBOS Treasury Services PLC (p) 3.750% due 09/30/08 1,000 973 ICICI Bank, Ltd. (E)(A) 5.900% due 01/12/10 1,100 1,103 Inter-American Development Bank Series GMTN 5.250% due 06/16/08 2,500 2,504 Interstar Millennium Trust (E) Series 2004-2G Class A 5.560% due 03/14/36 1,316 1,318
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Kreditanstalt fuer Wiederaufbau 5.250% due 05/19/09 (N) 6,080 6,089 4.875% due 10/19/09 2,765 2,747 National Australia Bank, Ltd. (E)(p) 5.393% due 09/11/09 800 800 Royal Bank of Scotland PLC (E)(p) 5.424% due 07/21/08 1,500 1,501 Santander US Debt SA Unipersonal (E)(p) 5.376% due 11/20/08 1,500 1,500 Siemens Financieringsmaatschappij NV (E)(p) 5.424% due 08/14/09 3,700 3,700 Svensk Exportkredit AB (N) 4.625% due 02/17/09 10,305 10,171 Transocean, Inc. (E) 5.591% due 09/05/08 800 801 Unicredit Luxembourg Finance SA (E)(p) 5.410% due 10/24/08 3,900 3,900 VTB Capital SA (E)(p) 5.970% due 08/01/08 700 701 ------------ 52,184 ------------ Mortgage-Backed Securities - 18.9% American Home Mortgage Investment Trust (E) Series 2004-3 Class 5A 4.290% due 10/25/34 1,819 1,782 Series 2004-4 Class 4A 4.390% due 02/25/45 588 578 Banc of America Commercial Mortgage, Inc. Series 2004-2 Class A1 2.764% due 11/10/38 1,071 1,044 Banc of America Funding Corp. Series 2005-D Class A1 (E) 4.114% due 05/25/35 8,650 8,439 Series 2006-2 Class 2A18 5.750% due 03/25/36 3,264 3,269 Banc of America Mortgage Securities, Inc. Series 2004-2 Class 2A1 5.250% due 03/25/34 1,006 998 Series 2004-2 Class 5A1 6.500% due 10/25/31 265 268
Short Duration Bond Fund 61 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Bear Stearns Adjustable Rate Mortgage Trust Series 2003-1 Class 5A1 5.450% due 04/25/33 475 469 Series 2003-8 Class 2A1 (E) 4.782% due 01/25/34 411 405 Bear Stearns Alt-A Trust Series 2005-4 Class 23A1 5.390% due 05/25/35 1,136 1,134 Bear Stearns Asset Backed Securities, Inc. Series 2003-AC3 Class A1 4.000% due 07/25/33 424 414 Bear Stearns Commercial Mortgage Securities Series 1998-C1 Class A1 6.340% due 06/16/30 165 165 Series 1999-C1 Class A2 6.020% due 02/14/31 2,000 2,015 Series 2001-TOP Class A1 5.060% due 11/15/16 407 404 Series 2003-PWR Class A1 3.432% due 05/11/39 596 575 Series 2003-T10 Class A1 4.000% due 03/13/40 1,330 1,283 Series 2003-T12 Class A1 2.960% due 08/13/39 732 713 Bear Stearns Mortgage Funding Trust (E) Series 2007-AR1 Class 2A1 5.390% due 06/26/36 1,400 1,400 Citigroup Commercial Mortgage Trust (E)(p) Series 2006-FL2 Class A1 5.390% due 11/15/36 996 996 Commercial Mortgage Pass Through Certificates Series 1999-1 Class A2 6.455% due 05/15/32 873 882 Series 2004-LB2 Class A2 3.600% due 03/10/39 1,000 967 Countrywide Alternative Loan Trust Series 2003-6T2 Class A1 6.500% due 06/25/33 100 100 Series 2003-J2 Class A1 6.000% due 10/25/33 418 412 Series 2004-12C Class 1A1 5.000% due 07/25/19 2,521 2,462 Series 2005-34C Class 1A6 5.500% due 09/25/35 3,268 3,262 Series 2005-73C Class 1A8 5.500% due 01/25/36 3,061 3,042 Series 2006-OA1 Class A1 (E) 5.500% due 02/20/47 790 789
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Countrywide Home Loan Mortgage Pass Through Trust (E) Series 2005-HYB Class 5A1 5.250% due 02/20/36 1,106 1,098 Credit Suisse First Boston Mortgage Securities Corp. Series 2003-C4 Class A2 3.908% due 08/15/36 1,000 978 Series 2003-CK2 Class A1 3.006% due 03/15/36 626 613 Series 2004-C1 Class A1 2.254% due 01/15/37 678 668 Series 2005-C5 Class A1 5.046% due 08/15/38 3,229 3,200 Deutsche ALT-A Securities, Inc. Alternate Loan Trust (E) Series 2007-AR1 Class A3B 5.390% due 01/25/47 800 800 Fannie Mae 6.000% due 2008 47 47 5.500% due 2009 1,240 1,240 6.000% due 2010 111 111 6.500% due 2010 102 104 6.000% due 2011 136 137 6.500% due 2011 79 80 4.500% due 2013 2,200 2,149 5.000% due 2013 2,215 2,189 5.500% due 2013 280 280 6.000% due 2013 328 332 6.000% due 2014 1,653 1,672 5.500% due 2016 1,031 1,028 5.000% due 2017 87 85 5.500% due 2017 1,639 1,638 6.000% due 2017 175 177 5.000% due 2018 3,719 3,648 5.000% due 2019 463 453 5.000% due 2020 313 306 5.000% due 2021 976 955 5.500% due 2022 1,180 1,169 5.500% due 2033 74 73 6.000% due 2033 27 27 5.500% due 2034 9,121 9,003 4.662% due 2035 (E) 485 481 4.664% due 2035 (E) 3,749 3,702 4.908% due 2035 (E) 31,103 30,811 5.500% due 2035 19,233 18,927
62 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 6.077% due 2041 (E) 917 928 6.027% due 2042 (E) 669 676 Fannie Mae REMICS Series 2003-129 Class PQ 4.500% due 07/25/33 149 148 Series 2003-16 Class BH 5.000% due 03/25/17 2,359 2,330 Series 2003-24 Class PU 3.500% due 11/25/15 230 222 Series 2003-46 Class PQ 3.000% due 06/25/19 651 648 Series 2003-62 Class OD 3.500% due 04/25/26 1,250 1,203 Series 2003-63 Class GU 4.000% due 07/25/33 1,447 1,422 Series 2003-67 Class TA 3.000% due 08/25/17 3,130 2,923 Series 2003-75 Class NB 3.250% due 08/25/18 529 505 Series 2004-17 Class HA 3.000% due 01/25/19 1,877 1,725 Series 2004-21 Class QA 4.000% due 11/25/17 811 806 Federal Home Loan Bank System Series 2004- Class 1 3.920% due 09/25/09 1,390 1,350 Series 2005-058 Class H 4.750% due 10/25/10 3,303 3,267 Federal Home Loan Mortgage Corp. Structured Pass Through Securities (E) Series 2005-63 Class 1A1 5.958% due 02/25/45 1,168 1,166 Freddie Mac 6.000% due 2009 41 41 6.000% due 2010 78 78 8.000% due 2010 11 12 6.000% due 2011 149 150 6.000% due 2032 381 384 6.000% due 2033 665 669 4.919% due 2035 (E) 864 857 Freddie Mac Gold 5.500% due 2008 58 57 6.500% due 2008 42 42 5.500% due 2009 139 139 6.000% due 2009 43 44 6.500% due 2009 201 203 6.000% due 2011 219 221 6.000% due 2013 105 106 5.500% due 2014 458 456 6.000% due 2014 111 112 6.000% due 2016 468 476 5.500% due 2017 809 806 5.000% due 2018 506 496
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 6.000% due 2028 113 113 5.500% due 2029 793 785 6.000% due 2029 233 234 6.000% due 2031 309 312 Freddie Mac REMICS Series 1993-164 Class PD 4.500% due 09/15/08 18 18 Series 2002-241 Class PE 6.000% due 10/15/21 3,227 3,258 Series 2003-255 Class PB 5.500% due 08/15/30 19 19 Series 2003-258 Class NS 3.250% due 09/15/15 1,116 1,076 Series 2003-261 Class JA 3.760% due 03/15/29 1,182 1,132 Series 2003-262 Class KP 2.870% due 12/15/16 2,591 2,435 Series 2003-263 Class CD 4.000% due 10/15/26 1,500 1,454 Series 2003-268 Class MX 4.000% due 07/15/16 1,946 1,882 Series 2004-276 Class EA 4.500% due 04/15/13 943 935 Series 2004-276 Class NL 3.250% due 03/15/14 3,202 3,076 Series 2004-282 Class EA 4.500% due 11/15/15 2,627 2,586 Series 2004-285 Class BA 4.500% due 02/15/20 1,256 1,231 Series 2005-305 Class AP 5.500% due 01/15/27 2,292 2,292 Series 2006-314 Class LF (E) 5.620% due 05/15/36 600 601 GE Capital Commercial Mortgage Corp. Series 2001-3 Class A1 5.560% due 06/10/38 806 808 Series 2004-C3 Class A1 3.752% due 07/10/39 1,775 1,736 Series 2005-C1 Class A1 4.012% due 06/10/48 1,131 1,109 Ginnie Mae I 6.000% due 12/15/08 45 45 9.500% due 12/15/17 1 1 Ginnie Mae II (E) 5.750% due 07/20/27 100 101 5.000% due 02/20/32 180 181
Short Duration Bond Fund 63 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Government National Mortgage Association Series 2004-78 Class A 3.590% due 11/16/17 2,520 2,448 Greenpoint Mortgage Funding Trust (E) Series 2006-AR6 Class A1A 5.430% due 10/25/46 993 994 Series 2006-AR8 Class 1A1A 5.430% due 01/25/47 800 800 GSR Mortgage Loan Trust Series 2004-7 Class 1A1 3.393% due 06/25/34 1,432 1,429 Harborview Mortgage Loan Trust (E) Series 2006-12 Class 2A11 5.440% due 12/19/36 1,874 1,873 Impac CMB Trust (E) Series 2004-2 Class A2 5.850% due 04/25/34 194 194 Indymac Index Mortgage Loan Trust (E) Series 2006-AR1 Class 1A1A 5.440% due 11/25/46 747 747 JP Morgan Chase Commercial Mortgage Securities Corp. Series 2002-C2 Class A1 4.326% due 12/12/34 710 691 Series 2005-LDP Class A1 4.655% due 08/15/42 1,477 1,456 4.613% due 10/15/42 1,722 1,700 Series 2005-LDP Class A2 4.790% due 10/15/42 2,150 2,106 LB-UBS Commercial Mortgage Trust Series 2003-C1 Class A1 2.720% due 03/15/27 955 935 Series 2003-C3 Class A1 2.599% due 05/15/27 1,493 1,454 Lehman Brothers Floating Rate Commercial Mortgage Trust (E)(p) Series 2006-LLF Class A1 5.400% due 09/15/21 639 639 Mellon Residential Funding Corp. (E) Series 2000-TBC Class A1 5.560% due 06/15/30 1,056 1,056 Merrill Lynch Mortgage Trust Series 2006-C1 Class A1 5.528% due 05/12/39 2,482 2,485 Morgan Stanley Capital I Series 2003-T11 Class A1 3.260% due 06/13/41 1,151 1,125 Series 2004-T13 Class A1 2.850% due 09/13/45 484 471 Series 2005-HQ6 Class A1 4.646% due 08/13/42 1,685 1,657
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Morgan Stanley Dean Witter Capital I Series 2002-HQ Class A2 6.090% due 04/15/34 113 113 Prime Mortgage Trust (E) Series 2004-CL1 Class 1A2 5.720% due 02/25/34 201 201 Series 2004-CL1 Class 2A2 5.720% due 02/25/19 47 47 Residential Accredit Loans, Inc. Series 2003-QS1 Class A1 5.000% due 09/25/18 3,239 3,150 Salomon Brothers Mortgage Securities VII, Inc. Series 2003-UP2 Class A1 4.000% due 12/25/18 863 816 Structured Asset Mortgage Investments, Inc. (E) Series 2002-AR3 Class A1 5.680% due 09/19/32 49 50 Structured Asset Securities Corp. (E) Series 2001-21A Class 1A1 7.213% due 01/25/32 48 48 Thornburg Mortgage Securities Trust (E) Series 2006-6 Class A1 5.430% due 12/25/36 793 792 Vendee Mortgage Trust Series 2001-3 Class J 6.500% due 05/15/08 229 229 Wachovia Auto Owner Trust Series 2005-B Class A4 4.840% due 04/20/11 1,250 1,239 Wachovia Bank Commercial Mortgage Trust Series 2002-C2 Class A2 4.043% due 11/15/34 1,771 1,718 Series 2003-C4 Class A1 3.003% due 04/15/35 1,097 1,073 Series 2006-WL7 Class A1 (E)(p) 5.410% due 09/15/21 3,023 3,023 Washington Mutual, Inc. Series 2002-AR1 Class A6 4.816% due 10/25/32 484 482 Series 2002-AR6 Class A (E) 6.227% due 06/25/42 365 365 Series 2002-AR9 Class 1A (E) 6.158% due 08/25/42 736 736
64 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2004-AR1 Class A2A (E) 5.745% due 11/25/34 1,457 1,463 Series 2005-AR1 Class A1A1 (E) 5.640% due 10/25/45 320 321 Series 2006-AR1 Class 2A (E) 5.846% due 09/25/46 792 792 Wells Fargo Mortgage Backed Securities Trust Series 2005-9 Class 1A1 4.750% due 10/25/35 2,593 2,548 Series 2006-AR2 Class 2A1 4.950% due 03/25/36 1,184 1,166 ------------ 223,168 ------------ Non-US Bonds - 0.0% Landwirtschaftliche Rentenbank 0.650% due 09/30/08 JPY 60,000 497 ------------ United States Government Agencies - 0.4% Federal Home Loan Bank System 3.750% due 08/18/09 1,500 1,454 Series DE08 5.925% due 04/09/08 1,600 1,612 Series HK10 Zero coupon due 04/27/10 531 502 Freddie Mac 5.810% due 04/04/08 1,000 1,006 ------------ 4,574 ------------ United States Government Treasuries - 5.1% United States Treasury Notes 3.875% due 05/15/09 9,500 9,291 4.250% due 11/15/14 52,866 50,923 ------------ 60,214 ------------ TOTAL LONG-TERM INVESTMENTS (cost $852,705) 844,660 PREFERRED STOCKS - 0.2% Financial Services - 0.2% DG Funding Trust (E)(A) 219 2,307 ------------ TOTAL PREFERRED STOCKS (cost $2,307) 2,307 ------------ NOTIONAL MARKET AMOUNT VALUE ($) $ OPTIONS PURCHASED - 0.1% (Number of Contracts) Eurodollar Futures Mar 2007 92.00 Put (292) 67,160 2 Jun 2007 91.00 Put (201) 45,728 1 Jun 2007 91.25 Put (316) 72,088 2 Sep 2007 91.75 Put (60) 13,763 -- Dec 2007 91.25 Put (777) 177,253 5 Mar 2008 91.75 Put (450) 103,219 3 Swaptions (Fund Pays/Fund Receives) EUR Three Month LIBOR/ EUR 3.96% Jul 2007 0.00 Call (1) 3,910 2 GBP Three Month LIBOR/ GBP 5.08% Jun 2007 0.00 Call (1) 1,965 -- GBP Six Month LIBOR/ GBP 5.08% Jun 2007 0.00 Call (1) 3,144 -- USD Three Month LIBOR/ USD 5.17% Feb 2007 0.00 Call (1) 9,500 -- USD Three Month LIBOR/ USD 5.08% Apr 2007 0.00 Call (1) 6,900 8 USD Six Month LIBOR/ USD 5.00% Apr 2008 0.00 Call (1) 27,800 164 USD Three Month LIBOR/ USD 5.20% May 2007 0.00 Call (1) 20,800 40 USD Three Month LIBOR/ USD 5.25% Jun 2007 0.00 Call (1) 18,000 51 USD Six Month LIBOR/ USD 4.85% Jul 2007 0.00 Call (1) 20,000 2 USD Three Month LIBOR/ USD 4.90% Jul 2007 0.00 Call (1) 23,000 161 USD Three Month LIBOR/ USD 5.25% Jul 2007 0.00 Call (1) 18,000 69 USD Three Month LIBOR/ USD 4.90% Aug 2007 0.00 Call (2) 21,000 96 ------------ TOTAL OPTIONS PURCHASED (cost $689) 606 ------------
Short Duration Bond Fund 65 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 27.0% Abbey National NA LLC 5.225% due 03/07/07 18,400 18,339 Allstate Financial Global Funding (p) 5.250% due 02/01/07 3,100 3,100 American General Finance Corp. (E) Series MTNG 5.406% due 03/23/07 200 200 ASIF Global Financing XVIII (p) 3.850% due 11/26/07 2,984 2,946 Bank of America Corp. 5.230% due 03/20/07 7,900 7,868 Bank of Montreal 7.800% due 04/01/07 2,500 2,508 Bank One NA Series BKNT 3.700% due 01/15/08 1,470 1,449 Barclays Bank PLC 5.320% due 01/16/08 8,800 8,799 Barclays US Funding Corp. 5.250% due 02/20/07 7,800 7,778 BellSouth Corp. (E) 5.499% due 11/15/07 1,200 1,201 BNP Paribas 5.293% due 07/03/07 3,900 3,898 BNP Paribas Financial, Inc. 5.228% due 02/22/07 11,670 11,634 British Aerospace Finance, Inc. (p) 7.000% due 07/01/07 900 904 British Telecommunications PLC 7.000% due 05/23/07 1,700 1,706 Capital One Auto Finance Trust Series 2006-C Class A1 5.340% due 12/14/07 539 539 CIT Group, Inc. (E)(N) 5.595% due 09/20/07 3,800 3,806 Citigroup, Inc. (E) 5.430% due 06/04/07 1,000 1,000 Daimlerchrysler NA Holding Corp. 5.345% due 06/22/07 2,700 2,642 Dexia Delaware LLC 5.260% due 02/01/07 13,370 13,334 Federal Farm Credit Bank Series 1984- 12.250% due 02/01/07 864 864 Federal Home Loan Bank Discount Note (c)(z) Zero Coupon due 02/23/07 4,000 3,988 FedEx Corp. (E) 5.455% due 08/08/07 800 801
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Ford Motor Credit Co. 7.750% due 02/15/07 (N) 200 200 6.315% due 03/21/07 (E) 2,800 2,800 8.371% due 11/02/07 (E)(N) 200 203 France Treasury Bills BTF Zero Coupon due 04/05/07 1,300 1,684 Freddie Mac Gold 4.000% due 2007 731 724 4.000% due 2008 613 601 4.500% due 2008 661 657 General Electric Capital Corp. 5.200% due 07/30/07 8,300 8,290 Ginnie Mae I 7.000% due 11/15/07 1 1 Goldman Sachs Group, Inc. (E) 5.495% due 10/05/07 2,000 2,002 HBOS Treasury Services PLC 5.235% due 03/15/07 8,665 8,613 3.500% due 11/30/07 (p) 2,000 1,969 HSBC Bank USA 5.230% due 04/23/07 1,300 1,285 HSBC Finance Corp. (E) 5.410% due 02/28/07 3,200 3,200 Inter-American Development Bank 6.375% due 10/22/07 5,305 5,347 International Lease Finance Corp. 5.625% due 06/01/07 1,600 1,601 Series MTNP 3.125% due 05/03/07 2,200 2,188 JP Morgan Chase & Co. 5.224% due 03/28/07 11,200 11,111 MGM Mirage 9.750% due 06/01/07 1,200 1,214 National Rural Utilities Cooperative Finance Corp. (N) Series MTNC 6.500% due 03/01/07 2,200 2,201 New York Life Global Funding (E)(p) 5.460% due 02/26/07 2,500 2,500 Ontario Electricity Financial Corp. 6.100% due 01/30/08 4,000 4,026 Pepco Holdings, Inc. 5.500% due 08/15/07 400 400 Pricoa Global Funding I (E)(p) 5.457% due 01/25/08 1,400 1,402 Principal Life Global Funding I (p) 5.125% due 06/28/07 2,000 1,997 Province of New Brunswick Canada 3.500% due 10/23/07 3,671 3,622 Russell Investment Company Money Market Fund 80,110,553 80,110
66 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Santander US Debt SA Universal (E)(p) 5.375% due 09/21/07 500 500 Siemens Capital Co. LLC 5.220% due 02/22/07 11,690 11,654 Skandinaviska Enskilda Banken 5.273% due 07/06/07 3,400 3,399 Societe Generale 5.258% due 06/11/07 600 600 Societe Generale NA 5.225% due 05/10/07 19,470 19,232 Texas Eastern Transmission, LP 5.250% due 07/15/07 2,900 2,893 TIAA Global Markets, Inc. (p) 5.000% due 03/01/07 3,625 3,624 UBS Financial Del LLC 5.225% due 06/01/07 20,100 19,927 United States Treasury Bills (c)(z)(sec.) 4.921% due 03/15/07 250 249 4.926% due 03/15/07 950 945 4.932% due 03/15/07 1,500 1,492 4.939% due 03/15/07 30 30 4.967% due 03/15/07 100 99 US Bancorp Series MTNN 5.100% due 07/15/07 1,650 1,647 Wachovia Corp. (E) Series * 5.410% due 07/20/07 3,500 3,502 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $319,191) 319,045 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- OTHER SECURITIES - 1.8% Russell Investment Company Money Market Fund (X) 5,343,576 5,344 State Street Securities Lending Quality Trust (X) 16,292,191 16,292 ------------ TOTAL OTHER SECURITIES (cost $21,636) 21,636 ------------ TOTAL INVESTMENTS - 100.7% (identified cost $1,196,528) 1,188,254 OTHER ASSETS AND LIABILITIES, NET - (0.7%) (8,666) ------------ NET ASSETS - 100.0% 1,179,588 ============
See accompanying notes which are an integral part of the schedules of investments. Short Duration Bond Fund 67 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Euribor Futures expiration date 09/07 (1) 312 (1) expiration date 12/07 (35) 10,929 (4) Eurodollar Futures (CME) expiration date 06/07 (137) 32,419 (66) expiration date 09/07 (1,081) 256,048 (1,031) expiration date 12/07 (1,476) 349,941 (1,099) expiration date 03/08 (440) 104,379 (292) expiration date 06/08 (26) 6,170 3 expiration date 09/08 (26) 6,172 2 expiration date 12/08 (111) 26,350 (22) LIBOR Futures expiration date 06/07 (14) 3,238 (20) expiration date 09/07 (19) 4,394 (27) expiration date 12/07 (16) 3,701 (22) expiration date 06/08 (11) 2,550 -- United States Treasury 2 Year Notes expiration date 03/07 (241) 49,066 (199) Short Positions United States Treasury Bonds expiration date 03/07 (248) 27,311 807 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (1,971) ===============
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Eurodollar Futures Mar 2007 94.75 Put (13) 3,079 (4) Swaptions (Fund Pays/Fund Receives) EUR Three Month LIBOR/ EUR 4.100% Jul 2007 0.00 Call (1) 1,303 (3) GBP Three Month LIBOR/ GBP 4.850% Jun 2007 0.00 Call (1) 589 -- GBP Six Month LIBOR/ GBP 4.850% Jun 2007 0.00 Call (1) 982 (1) USD Three Month LIBOR/ USD 5.240% Feb 2007 0.00 Call (1) 4,100 (2)
- ------------------------------------------------------------------------------------
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ USD Three Month LIBOR/ USD 5.220% Apr 2007 0.00 Call (1) 3,000 (17) USD Three Month LIBOR/ USD 5.320% May 2007 0.00 Call (1) 9,100 (77) USD Three Month LIBOR/ USD 5.000% Jul 2007 0.00 Call (1) 10,000 (33) USD Three Month LIBOR/ USD 5.370% Jul 2007 0.00 Call (1) 8,000 (93) USD Six Month LIBOR/ USD 4.950% Jul 2007 0.00 Call (1) 4,200 (62) USD Three Month LIBOR/ USD 4.900% Aug 2007 0.00 Call (1) 3,000 (10) USD Three Month LIBOR/ USD 5.000% Aug 2007 0.00 Call (1) 1,000 (5) USD Three Month LIBOR/ USD 5.100% Feb 2008 0.00 Call (1) 12,000 (107) --------------- Total Liability for Options Written (premiums received $592) (414) ===============
See accompanying notes which are an integral part of the schedules of investments. 68 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 11 GBP 5 02/01/07 -- USD 79 GBP 40 02/22/07 -- EUR 1,699 USD 2,206 02/27/07 (12) GBP 107 USD 207 02/22/07 (3) JPY 27,292 USD 225 02/15/07 (1) JPY 31,325 USD 268 02/15/07 8 -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (8) ==============
INTEREST RATE SWAP CONTRACTS - --------------------------------------------------------------------------------------------------------------------------- MARKET COUNTER NOTIONAL TERMINATION VALUE PARTY AMOUNT FUND RECEIVES FUND PAYS DATE $ - ----------------------- -------------- ------------------- -------------------- ---------------- ---------------- Consumer Price Index BNP Paribas EUR 1,200 2.090% (France) 10/15/10 19 Lehman Brothers GBP 1,500 4.500% Six Month LIBOR 09/20/09 (68) Merrill Lynch GBP 1,600 4.500% Six Month LIBOR 09/20/09 (72) UBS USD 42,500 5.000% Three Month LIBOR 06/20/09 (190) ---------------- Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $99 (311) ================
CREDIT DEFAULT SWAP CONTRACTS - -------------------------------------------------------------------------------------------------------------------- NOTIONAL MARKET REFERENCE COUNTER AMOUNT FUND RECEIVES TERMINATION VALUE ENTITY PARTY $ FIXED RATE DATE $ - ------------------------------ ---------------- --------- ---------------- -------------- ---------------- Brazilian Government International Bond Lehman Brothers 1,900 0.240% 11/20/07 1 Brazilian Government International Bond Lehman Brothers 3,200 1.120% 11/20/11 25 Dow Jones CDX High Volatility 4 Index Bank of America 2,000 0.650% 12/20/16 13 Ford Motor Credit Co. Merrill Lynch 3,200 1.700% 06/20/07 14 Gaz Capital for Gazprom JP Morgan 2,700 0.415% 11/20/07 1 Gaz Capital for Gazprom Morgan Stanley 1,400 0.860% 11/20/11 6 Royal Bank of Republic of Indonesia Scotland 1,000 0.400% 12/20/08 -- Republic of Panama Deutsche Bank 300 0.250% 12/20/08 -- Russia Government International Bond Merrill Lynch 1,000 0.305% 12/20/08 -- SoftBank Corp. Deutsche Bank 30,000 2.300% 09/20/07 2 ---------------- Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($11) 62 ================
See accompanying notes which are an integral part of the schedules of investments. Short Duration Bond Fund 69 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- LONG-TERM INVESTMENTS - 94.6% Asset-Backed Securities - 7.8% ABSC NIMs Trust (p) Series 2005-HE6 Class A1 5.050% due 08/27/35 108 107 Accredited Mortgage Loan Trust (E) Series 2004-2 Class A2 5.620% due 07/25/34 142 142 ACE Securities Corp. (E) Series 2005-SD3 Class A 5.720% due 08/25/45 858 859 Series 2006-ASP Class A2A 5.400% due 10/25/36 735 735 Series 2006-FM1 Class A2A 5.360% due 07/25/36 1,317 1,317 Series 2006-FM1 Class A2B 5.410% due 07/25/36 2,580 2,580 Aegis Asset Backed Securities Trust (E) Series 2003-3 Class M2 6.970% due 01/25/34 450 453 Air 2 US (A) 8.027% due 10/01/19 486 504 American Express Credit Account Master Trust (E)(p) Series 2006-A Class A 5.340% due 01/15/09 2,420 2,420 Ameriquest Mortgage Securities, Inc. (E) Series 2002-D Class M1 7.557% due 02/25/33 205 205 Series 2004-R10 Class A5 5.710% due 11/25/34 108 108 Series 2004-R4 Class A1A (p) 5.680% due 06/25/34 476 476 Series 2004-R8 Class A5 5.690% due 09/25/34 333 334 Argent Securities, Inc. (E) Series 2005-W5 Class A2A 5.430% due 01/25/36 1,106 1,106 Series 2006-M2 Class A2A 5.370% due 09/25/36 483 483 Asset Backed Funding Corp. NIMs Trust (p) Series 2005-WF1 Class N1 4.750% due 03/26/35 37 37
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Bayview Financial Acquisition Trust Series 2004-C Class A1 (E) 5.740% due 05/28/44 741 742 Series 2006-A Class 1A3 5.865% due 02/28/41 450 448 Burlington Northern Santa Fe Corp. Pass-Through Certificate 4.967% due 04/01/23 302 293 Carrington Mortgage Loan Trust (E) Series 2006-NC3 Class A3 5.470% due 08/25/36 3,180 3,181 Chase Credit Card Master Trust (E) Series 2002-1 Class A 5.420% due 06/15/09 3,100 3,100 Series 2003-6 Class A 5.460% due 02/15/11 1,300 1,303 Series 2004-2 Class A 5.360% due 09/15/09 2,190 2,190 Chase Issuance Trust (E) Series 2005-A1 Class A1 5.330% due 12/15/10 10,375 10,379 Series 2005-A3 Class A 5.370% due 10/17/11 1,950 1,952 Series 2006-A3 Class A3 5.340% due 07/15/11 1,100 1,101 Citigroup Mortgage Loan Trust, Inc. (E) Series 2006-WFH Class A1 5.390% due 08/25/36 817 817 Series 2006-WFH Class A1B 5.460% due 01/25/36 2,490 2,491 Countrywide Asset-Backed Certificates Series 2001-BC3 Class A (E) 5.830% due 12/25/31 82 82 Series 2004-13 Class AF3 3.989% due 02/25/31 202 200 Series 2004-BC1 Class M1 (E) 5.820% due 02/25/34 235 236 Series 2005-11 Class AF1 (E) 5.530% due 02/25/36 913 913 Series 2005-17 Class 1AF1 (E) 5.550% due 12/25/36 1,198 1,198 Series 2005-17 Class 4AV1 (E) 5.460% due 05/25/36 661 662 Series 2006-11 Class 1AF4 6.300% due 09/25/46 685 696 Series 2006-13 Class 3AV1 (E) 5.400% due 01/25/37 1,616 1,616 Series 2006-15 Class A1 (E) 5.460% due 10/25/46 1,044 1,044
70 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-16 Class 2A1 (E) 5.370% due 12/25/46 447 447 Series 2006-19 Class 2A1 (E) 5.380% due 03/25/37 1,238 1,238 Series 2006-22 Class 2A1 (E) 5.370% due 05/25/37 697 697 Series 2006-23 Class 2A1 (E) 5.428% due 11/25/37 692 692 Countrywide Asset-Backed NIMs Certificates (p) Series 2005-5 Class N 5.000% due 07/25/36 57 55 Countrywide Home Equity Loan Trust (E) Series 2005-A Class 2A 5.590% due 04/15/35 225 225 Series 2005-G Class 2A 5.550% due 12/15/35 1,091 1,091 Credit-Based Asset Servicing and Securitization (E) Series 2005-CB5 Class AV2 5.610% due 08/25/35 520 522 Credit-Based Asset Servicing and Securitization LLC Series 2004-CB7 Class AF5 4.585% due 10/25/34 770 739 Series 2005-CB1 Class AF2 4.090% due 01/25/35 136 136 Series 2006-CB3 Class AV1 (E) 5.410% due 03/25/36 942 942 Series 2006-CB6 Class A21 (E) 5.360% due 07/25/36 2,701 2,701 Daimler Chrysler Auto Trust Series 2006-C Class A2 5.330% due 05/08/09 1,200 1,199 Daimler Chrysler Master Owner Trust (E) Series 2006-A Class A 5.350% due 11/15/11 8,255 8,273 Discover Card Master Trust I (E) Series 2005-1 Class A 5.330% due 09/16/10 3,870 3,872 Equifirst Mortgage Loan Trust (E) Series 2004-3 Class A2 5.680% due 12/25/34 607 607 Equifirst Mortgage Loan Trust NIMs Notes (p) Series 2005-1 Class N1 4.458% due 04/25/35 29 29 Fannie Mae Grantor Trust (E) Series 2002-T5 Class A1 5.590% due 05/25/32 273 273 Series 2003-T4 Class 1A 5.460% due 09/26/33 303 304
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Fannie Mae Whole Loan (E) Series 2003-W5 Class A 5.570% due 04/25/33 304 304 Series 2003-W9 Class A 5.470% due 06/25/33 445 444 First Franklin Mortgage Loan Asset Backed Certificates (E) Series 2004-FF1 Class A2 5.750% due 12/25/32 468 468 Series 2004-FFH Class 2A1 5.730% due 10/25/34 237 237 Series 2005-FF1 Class A2A 5.440% due 11/25/36 216 216 Series 2006-FF1 Class 2A2 5.420% due 08/25/36 4,005 4,005 Series 2006-FF1 Class A3 5.430% due 11/25/36 1,360 1,361 Series 2006-FF3 Class A2A 5.430% due 02/25/36 967 968 Series 2006-FF5 Class 2A1 5.400% due 04/25/36 1,232 1,232 Ford Credit Floorplan Master Owner Trust (E) Series 2004-1 Class A 5.390% due 07/15/09 2,275 2,274 Freddie Mac (N) 5.000% due 01/16/09 4,805 4,793 Fremont Home Loan Trust (E) Series 2004-4 Class 1A1 5.730% due 03/25/35 2,981 2,984 Series 2006-3 Class 2A1 5.420% due 02/25/37 829 829 Series 2006-E Class 2A1 5.410% due 01/25/37 700 700 Fremont NIMs Trust (p) Series 2005-A 3.750% due 01/25/35 16 16 Series 2005-C Class NOTE 5.584% due 07/25/35 60 58 GE Dealer Floorplan Master Note Trust (E) Series 2004-2 Class A 5.400% due 07/20/09 1,240 1,241 Series 2005-1 Class A 5.390% due 04/20/10 1,800 1,801
Diversified Bond Fund 71 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-3 Class A 5.360% due 07/20/11 3,045 3,045 GE-WMC Mortgage Securities LLC (E) Series 2006-1 Class A2A 5.360% due 08/25/36 441 441 GMAC Mortgage Corp. Loan Trust Series 2004-HE5 Class A3 3.970% due 09/25/34 486 480 Government National Mortgage Association Series 1998-23 Class ZA 6.500% due 09/20/28 2,494 2,553 GSAA Home Equity Trust Series 2006-4 Class 1A2 5.967% due 03/25/36 653 657 GSAA Trust (E) Series 2006-2 Class 2A3 5.590% due 12/25/35 785 787 GSAMP Trust (E) Series 2003-HE2 Class M1 5.970% due 08/25/33 420 421 Series 2006-FM2 Class A2A 5.390% due 09/25/36 829 829 Series 2006-HE6 Class A3 5.500% due 08/25/36 4,415 4,416 HFC Home Equity Loan Asset Backed Certificates (E) Series 2006-2 Class A1 5.470% due 03/20/36 3,113 3,114 Home Equity Asset Trust (E) Series 2003-5 Class M1 6.020% due 12/25/33 620 621 Series 2005-2 Class 2A2 5.520% due 07/25/35 332 332 HSI Asset Securitization Corp. Trust (E) Series 2006-HE2 Class 2A1 5.370% due 12/25/36 493 493 JP Morgan Mortgage Acquisition Corp. (E) Series 2005-FLD Class A1 5.470% due 07/25/35 380 380 Series 2006-WMC Class A2 5.370% due 08/25/36 523 523 Lehman XS Trust (E) Series 2005-1 Class 2A1 4.660% due 07/25/35 1,106 1,095 Series 2005-1 Class 2A2 4.660% due 07/25/35 362 364 Series 2006-9 Class A1A 5.420% due 05/25/46 501 501
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Long Beach Mortgage Loan Trust (E) Series 2004-4 Class 1A1 5.650% due 10/25/34 203 203 Series 2006-1 Class 2A1 5.400% due 02/25/36 345 345 Mastr Asset Backed Securities Trust (E) Series 2005-NC1 Class A1 5.640% due 12/25/34 2,160 2,160 Mastr Asset Backed Securities Trust (E) Series 2003-WMC Class M2 6.970% due 08/25/33 133 133 MBNA Credit Card Master Note Trust (E) Series 2002-A4 Class A4 5.430% due 08/17/09 3,155 3,155 Merrill Auto Trust Securitization (E) Series 2005-1 Class A2B 5.330% due 04/25/08 28 28 Merrill Lynch Mortgage Investors, Inc. (E) Series 2006-RM3 Class A2A 5.350% due 06/25/37 919 919 Morgan Stanley ABS Capital I (E) Series 2003-NC8 Class M3 7.420% due 09/25/33 128 129 Series 2004-NC5 Class A2 5.650% due 05/25/34 609 609 Series 2006-NC5 Class A2A 5.360% due 10/25/36 480 480 Morgan Stanley IXIS Real Estate Capital Trust (E) Series 2006-2 Class A1 5.370% due 11/25/36 861 860 Morgan Stanley Mortgage Loan Trust Series 2006-12X Class A6A 5.726% due 10/25/36 580 574 MSDWCC Heloc Trust (E) Series 2005-1 Class A 5.540% due 07/25/17 115 115 Navistar Financial Corp. Owner Trust (E) Series 2003-B Class A3 5.500% due 04/15/08 57 57 Nelnet Student Loan Trust (E) Series 2006-3 Class A1 5.338% due 09/25/12 700 700
72 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- New Century Home Equity Loan Trust (E) Series 2004-4 Class M2 5.850% due 02/25/35 515 517 Newcastle Mortgage Securities Trust (E) Series 2006-1 Class A1 5.390% due 03/25/36 1,046 1,046 Nissan Master Owner Trust Receivables (E) Series 2005-A Class A 5.380% due 07/15/10 2,065 2,066 Option One Mortgage Loan Trust (E) Series 2003-2 Class M2 7.020% due 04/25/33 144 145 Series 2003-3 Class M3 7.350% due 06/25/33 104 105 Series 2003-4 Class M2 6.970% due 07/25/33 175 176 Series 2007-1 Class 2A1 5.370% due 01/25/37 1,000 1,000 Option One Mortgage Securities Corp. NIMs Trust (E)(p) Series 2006-1A 5.450% due 12/25/10 1,621 1,621 Origen Manufactured Housing Series 2005-B Class A4 5.910% due 01/15/37 400 393 Ownit Mortgage Loan Asset Backed Certificates (E) Series 2006-6 Class A2C 5.630% due 09/25/37 3,380 3,381 Park Place Securities, Inc. (E) Series 2004-MCW Class A1 5.632% due 10/25/34 2,750 2,752 Series 2004-WWF Class A1D 5.810% due 02/25/35 712 713 Series 2005-WCW Class M1 5.800% due 09/25/35 510 513 Popular ABS Mortgage Pass-Through Trust Series 2005-1 Class AF2 3.914% due 05/25/35 62 62 Series 2005-6 Class A3 5.680% due 01/25/36 565 562 Renaissance Home Equity Loan Trust Series 2005-1 Class M1 5.357% due 05/25/35 315 309 Series 2005-2 Class AF4 4.934% due 08/25/35 340 337 Series 2005-3 Class AF1 (E) 5.500% due 11/25/35 5 5 Series 2005-4 Class N (p) 7.142% due 02/25/36 228 227
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-1 Class AF6 5.746% due 05/25/36 425 427 Residential Asset Mortgage Products, Inc. Series 2003-RS1 Class AI6A 5.980% due 12/25/33 480 483 Series 2003-RS2 Class AII (E) 5.690% due 03/25/33 93 93 Series 2003-RS3 Class AII (E) 5.710% due 04/25/33 65 65 Residential Asset Securities Corp. Series 2001-KS1 Class AII (E) 5.820% due 03/25/32 65 65 Series 2001-KS3 Class AII (E) 5.580% due 09/25/31 80 80 Series 2003-KS1 Class M2 (E) 7.100% due 01/25/33 125 125 Series 2003-KS2 Class MI1 4.800% due 04/25/33 1,055 1,030 Series 2003-KS2 Class MI3 6.100% due 04/25/33 730 723 Series 2006-KS6 Class A1 (E) 5.360% due 08/25/36 592 592 Series 2006-KS9 Class AI1 (E) 5.420% due 11/25/36 1,151 1,151 Residential Funding Mortgage Securities II, Inc. (E) Series 2005-HS1 Class AI1 5.470% due 09/25/35 1,026 1,023 Saxon Asset Securities Trust (E) Series 2004-1 Class A 5.620% due 03/25/35 48 48 Series 2006-3 Class A1 5.380% due 11/25/36 546 546 SBI Heloc Trust (E)(p) Series 2006-1A Class 1A2A 5.490% due 08/25/36 642 642 Securitized Asset Backed Receivables LLC Trust (E) Series 2005-FR4 Class A3 5.550% due 01/25/36 454 454 Series 2007-HE1 Class A2A 5.380% due 12/25/36 1,300 1,299 SLM Student Loan Trust (E) Series 2006-10 Class A1 5.345% due 07/25/13 4,300 4,299
Diversified Bond Fund 73 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-3 Class A2 5.377% due 01/25/16 1,079 1,080 Series 2006-5 Class A2 5.367% due 07/25/17 2,700 2,700 Small Business Administration Series 2000-P10 Class 1 7.449% due 08/01/10 29 30 Soundview Home Equity Loan Trust Series 2006-EQ1 Class A1 (E) 5.400% due 10/25/36 723 723 Series 2006-EQ2 Class A1 (E) 1.704% due 01/25/37 4,300 4,300 Series 2006-WF1 Class A2 5.645% due 10/25/36 1,215 1,211 Specialty Underwriting & Residential Finance (E) Series 2003-BC1 Class A 5.690% due 01/25/34 11 11 Series 2006-AB1 Class A2 5.490% due 12/25/36 1,225 1,226 Structured Asset Investment Loan Trust (E) Series 2004-7 Class A1 5.605% due 08/25/34 201 201 Series 2005-3 Class M2 5.790% due 04/25/35 290 291 Structured Asset Securities Corp. Series 2002-AL1 Class A3 3.450% due 02/25/32 307 285 Series 2002-HF1 Class A (E) 5.610% due 01/25/33 13 13 Series 2004-19X Class A2 4.370% due 10/25/34 820 812 Series 2005-WF1 Class A2 (E) 5.550% due 02/25/35 1,939 1,941 Series 2005-WF3 Class A1 (E) 5.450% due 07/25/35 322 322 Series 2006-BC3 Class A2 (E) 5.370% due 10/25/36 1,206 1,207 Textron Financial Floorplan Master Note Trust (E)(p) Series 2005-1A Class A 5.470% due 05/13/10 2,405 2,409 Volkswagen Credit Auto Master Trust (E) Series 2005-1 Class A 5.370% due 07/20/10 1,870 1,871 Wachovia Asset Securitization, Inc. (E) Series 2003-HE3 Class A 5.600% due 11/25/33 177 178 Waverly Community School (E) Series 2006-1 Class A1 5.450% due 05/25/36 1,362 1,362
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Wells Fargo Home Equity Trust (E)(A) Series 2005-4 Class AI1 (p) 5.470% due 12/25/35 1,142 1,142 Series 2006-3 Class A1 5.380% due 01/25/37 700 700 ------------ 179,092 ------------ Certificates of Deposit - 0.4% Bank of Ireland 5.400% due 01/15/10 4,300 4,299 Fortis Bank 5.265% due 04/28/08 1,900 1,900 Nordea Bank Finland PLC 5.308% due 05/28/08 700 700 Royal Bank of Canada 5.420% due 06/30/08 1,800 1,799 Societe Generale 5.271% due 06/30/08 1,400 1,402 ------------ 10,100 ------------ Corporate Bonds and Notes - 15.3% Abbott Laboratories 5.600% due 05/15/11 545 551 5.875% due 05/15/16 6,505 6,680 Alamosa Delaware, Inc. 8.500% due 01/31/12 245 260 Alcoa, Inc. 5.550% due 02/01/17 910 904 5.900% due 02/01/27 975 963 Altria Group, Inc. 7.000% due 11/04/13 800 867 American Electric Power Co., Inc. Series C 5.375% due 03/15/10 85 85 American Express Bank (E) Series BKNT 5.330% due 10/16/08 1,200 1,200 American Express Centurion Bank (E) Series bknt 5.320% due 05/07/08 800 800 American Express Credit Corp. (E) 5.380% due 11/09/09 900 900 American General Finance Corp. (E) Series MTNI 5.496% due 06/27/08 1,600 1,604
74 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- American International Group, Inc. 5.370% due 06/16/09 (E)(p) 700 700 4.700% due 10/01/10 635 622 5.375% due 10/18/11 670 671 5.050% due 10/01/15 (N) 645 625 American RE Corp. Series B 7.450% due 12/15/26 595 681 Ameriprise Financial, Inc. 5.650% due 11/15/15 1,135 1,136 Anadarko Petroleum Corp. 5.760% due 09/15/09 (E) 680 682 5.950% due 09/15/16 2,340 2,320 6.450% due 09/15/36 720 713 Apache Corp. 6.000% due 01/15/37 780 779 ASIF Global Financing XIX (p) 4.900% due 01/17/13 70 68 AT&T, Inc. 5.584% due 11/14/08 (E) 500 502 5.100% due 09/15/14 465 450 BAE Systems Holdings, Inc. (p) 6.400% due 12/15/11 1,670 1,730 Bank of America Corp. 5.875% due 02/15/09 120 121 5.375% due 06/19/09 (E) 3,600 3,602 5.378% due 11/06/09 (E) 300 300 4.375% due 12/01/10 2,035 1,971 5.375% due 08/15/11 980 984 5.750% due 08/15/16 3,595 3,649 5.420% due 03/15/17 (p) 120 118 Bank of America NA Series BKNT 5.361% due 12/18/08 (E) 1,900 1,899 6.000% due 10/15/36 3,800 3,842 Bank of New York Co., Inc. (The) 5.125% due 11/01/11 795 787 Banque Paribas 6.875% due 03/01/09 440 454 Bear Stearns Asset Backed Securities, Inc. 6.000% due 10/25/36 3,200 3,217 6.500% due 10/25/36 3,100 3,145 Bear Stearns Cos., Inc. (The) 5.465% due 08/21/09 (E) 1,200 1,201 5.350% due 02/01/12 2,955 2,947 Series MTNB (E) 5.676% due 01/30/09 1,000 1,005 5.454% due 03/30/09 900 901 BellSouth Corp. 5.474% due 08/15/08 (E) 1,300 1,301 4.750% due 11/15/12 30 29 6.550% due 06/15/34 130 133
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Boeing Capital Corp., Ltd. (N) 6.100% due 03/01/11 165 170 Boston Scientific Corp. 6.400% due 06/15/16 970 986 Burlington Northern Santa Fe Corp. 6.875% due 12/01/27 55 59 Calyon NY (E) Series YCD 5.340% due 01/16/09 1,300 1,300 Campbell Soup Co. 5.875% due 10/01/08 160 161 Cardinal Health, Inc. 5.850% due 12/15/17 400 395 Carolina Power & Light Co. 6.500% due 07/15/12 15 16 5.150% due 04/01/15 1,115 1,081 Caterpillar, Inc. 6.050% due 08/15/36 2,155 2,197 CenterPoint Energy Houston Electric LLC Series J2 5.700% due 03/15/13 210 211 CenterPoint Energy Resources Corp. Series B 7.875% due 04/01/13 740 817 Cingular Wireless Services, Inc. 7.875% due 03/01/11 5,100 5,542 8.750% due 03/01/31 2,840 3,673 Cisco Systems, Inc. 5.500% due 02/22/16 4,380 4,371 CIT Group Holdings, Inc. (E) 5.526% due 01/30/09 800 802 CIT Group, Inc. 5.515% due 12/19/08 (E) 900 902 5.460% due 06/08/09 (E) 100 100 5.493% due 08/17/09 (E) 1,400 1,402 6.875% due 11/01/09 100 104 4.125% due 11/03/09 50 49 5.656% due 07/28/11 (E) 900 902 Citicorp 7.250% due 10/15/11 370 396 Citigroup Global Markets Holdings, Inc. (E) Series MTNM 5.390% due 03/07/08 1,300 1,301
Diversified Bond Fund 75 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Citigroup, Inc. 3.500% due 02/01/08 1,900 1,866 5.406% due 12/26/08 (E) 2,100 2,101 5.416% due 01/30/09 (E) 500 500 5.393% due 12/28/09 (E) 100 100 4.125% due 02/22/10 1,070 1,037 6.500% due 01/18/11 695 724 5.100% due 09/29/11 970 961 5.000% due 09/15/14 7,980 7,736 6.125% due 08/25/36 400 411 Citizens Property Insurance Corp. (A) 7.125% due 02/25/19 795 932 Clear Channel Communications, Inc. 4.250% due 05/15/09 150 145 6.250% due 03/15/11 30 30 5.500% due 09/15/14 400 354 Clorox Co. 4.200% due 01/15/10 250 242 Columbus Southern Power Co. Series C 5.500% due 03/01/13 100 100 Comcast Cable Communications LLC 6.875% due 06/15/09 665 687 Comcast Cable Holdings LLC 9.800% due 02/01/12 330 388 7.875% due 08/01/13 1,305 1,449 Comcast Corp. 5.660% due 07/14/09 (E) 1,000 1,002 6.500% due 01/15/15 1,185 1,239 5.900% due 03/15/16 290 291 6.500% due 01/15/17 600 628 5.875% due 02/15/18 200 199 6.500% due 11/15/35 1,330 1,346 6.450% due 03/15/37 200 201 Commonwealth Edison Co. Series 98 6.150% due 03/15/12 375 383 ConocoPhillips Holding Co. 6.950% due 04/15/29 1,780 2,002 Consolidated Natural Gas Co. 6.850% due 04/15/11 1,140 1,195 Constellation Energy Group, Inc. 6.125% due 09/01/09 785 798 4.550% due 06/15/15 855 791 COX Communications, Inc. 3.875% due 10/01/08 300 293 6.750% due 03/15/11 3,945 4,111 5.875% due 12/01/16 (p) 100 100 Credit Suisse First Boston USA, Inc. 3.875% due 01/15/09 820 799 4.875% due 08/15/10 155 153 6.500% due 01/15/12 55 58 5.500% due 08/15/13 (N) 115 116
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Credit Suisse USA, Inc. (N) 5.250% due 03/02/11 405 404 CRH America, Inc. 6.000% due 09/30/16 2,030 2,049 CVS Corp. 5.750% due 08/15/11 350 354 6.125% due 08/15/16 490 502 CVS Lease Pass Through (A) 6.036% due 12/10/28 300 295 DaimlerChrysler NA Holding Corp. 4.050% due 06/04/08 285 279 5.875% due 03/15/11 300 301 8.500% due 01/18/31 1,580 1,872 DaimlerChrysler North America Holding Corp. (E) 5.820% due 08/03/09 800 802 DCP Midstream, LP 6.875% due 02/01/11 40 42 Detroit Edison Co. (The) 6.125% due 10/01/10 325 331 6.350% due 10/15/32 95 99 Devon Energy Corp. 7.950% due 04/15/32 250 301 Dominion Resources, Inc. 4.750% due 12/15/10 110 107 5.700% due 09/17/12 695 702 Series A 5.200% due 01/15/16 855 822 Series B 6.250% due 06/30/12 120 124 Series C 5.150% due 07/15/15 1,245 1,203 Dow Chemical Co. (The) 6.000% due 10/01/12 245 251 DPL, Inc. 6.875% due 09/01/11 600 629 Dresdner Funding Trust I (p) 8.151% due 06/30/31 565 678 DTE Energy Co. 7.050% due 06/01/11 1,835 1,939 Duke Energy Corp. 6.250% due 01/15/12 170 176 5.625% due 11/30/12 290 293 Duke Realty, LP 5.950% due 02/15/17 1,045 1,059 Eastman Kodak Co. 7.250% due 11/15/13 40 40 Electronic Data Systems Corp. 7.125% due 10/15/09 600 623
76 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Eli Lilly & Co. 6.770% due 01/01/36 745 845 Erac USA Finance Co. (p) 5.900% due 11/15/15 1,570 1,575 Exelon Corp. 4.900% due 06/15/15 1,395 1,311 5.625% due 06/15/35 720 676 FedEx Corp. 5.500% due 08/15/09 1,870 1,872 7.600% due 07/01/97 180 208 Financing Corp. Principal Only STRIP Series 10P Zero coupon due 11/30/17 1,165 666 Series 15P Zero coupon due 03/07/19 165 88 Series 2P Zero coupon due 11/30/17 140 80 Series 6P Zero coupon due 08/03/18 715 393 FirstEnergy Corp. Series B 6.450% due 11/15/11 4,015 4,178 Series C (N) 7.375% due 11/15/31 2,480 2,824 Ford Motor Co. 7.450% due 07/16/31 360 292 Ford Motor Credit Co. 7.375% due 10/28/09 3,210 3,230 General Electric Capital Corp. 5.410% due 01/05/09 (E) 800 800 3.250% due 06/15/09 1,400 1,337 5.430% due 01/20/10 (E) 800 801 5.500% due 04/28/11 550 554 4.875% due 03/04/15 950 918 Series MTN (E) 5.390% due 10/26/09 2,200 2,199 Series MTNA 4.125% due 09/01/09 400 390 6.000% due 06/15/12 2,865 2,951 5.450% due 01/15/13 (N) 3,445 3,457 General Motors Corp. 8.375% due 07/05/33 90 115 GMAC LLC 5.625% due 05/15/09 1,765 1,747 7.750% due 01/19/10 300 312 Goldman Sachs Group, Inc. 5.456% due 06/23/09 (E) 1,700 1,701 5.454% due 11/16/09 (E) 600 600 5.000% due 01/15/11 200 198 6.875% due 01/15/11 1,620 1,709 4.750% due 07/15/13 1,630 1,565 5.350% due 01/15/16 (N) 1,455 1,423 5.625% due 01/15/17 405 400
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Goldman Sachs Group, LP 4.500% due 06/15/10 1,360 1,328 Hartford Financial Services Group, Inc. 5.550% due 08/16/08 1,070 1,072 5.250% due 10/15/11 915 910 Hess Corp. 7.875% due 10/01/29 90 105 7.300% due 08/15/31 1,025 1,136 Historic TW, Inc. 8.050% due 01/15/16 535 609 6.625% due 05/15/29 95 96 HJ Heinz Co. (p) 6.428% due 12/01/08 100 102 HJ Heinz Finance Co. 6.000% due 03/15/12 40 40 Home Depot, Inc. 5.250% due 12/16/13 100 99 5.875% due 12/16/36 2,485 2,422 HSBC Bank USA NA (E)(N) Series BKNT 5.493% due 06/10/09 500 502 HSBC Finance Corp. 5.490% due 09/15/08 (E) 900 902 4.750% due 05/15/09 6,155 6,074 5.420% due 10/21/09 (E) 600 600 4.125% due 11/16/09 3,510 3,409 6.750% due 05/15/11 2,100 2,212 7.000% due 05/15/12 2,435 2,611 6.375% due 11/27/12 710 743 5.000% due 06/30/15 400 387 HSBC Financial Capital Trust IX (N) 5.911% due 11/30/35 700 702 ILFC E-Capital Trust II (A) 6.250% due 12/21/65 50 51 International Business Machines Corp. 7.125% due 12/01/96 700 791 International Lease Finance Corp. 3.500% due 04/01/09 745 718 4.750% due 07/01/09 1,820 1,795 5.750% due 06/15/11 175 178 5.625% due 09/20/13 2,730 2,735 International Steel Group, Inc. 6.500% due 04/15/14 275 279 ITT Corp. 7.400% due 11/15/25 240 276
Diversified Bond Fund 77 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- John Deere Capital Corp. 5.424% due 07/15/08 (E) 800 800 4.875% due 03/16/09 (N) 1,895 1,876 JP Morgan Chase Capital XV 5.875% due 03/15/35 3,095 2,980 JP Morgan Chase Capital XX Series T 6.550% due 09/15/66 100 102 JPMorgan Chase & Co. 5.600% due 06/01/11 255 257 5.125% due 09/15/14 735 717 Series 1 (E)(N) 5.400% due 06/26/09 700 700 JPMorgan Chase Bank NA Series BKNT 5.875% due 06/13/16 675 689 Kaupthing Bank Hf (E) 6.062% due 04/12/11 1,020 1,027 Kellogg Co. Series B 6.600% due 04/01/11 1,430 1,491 Kerr-McGee Corp. 6.950% due 07/01/24 410 432 Kinder Morgan Energy Partners, LP 7.125% due 03/15/12 255 271 5.000% due 12/15/13 175 167 6.000% due 02/01/17 80 80 Kraft Foods, Inc. 4.000% due 10/01/08 1,575 1,539 5.625% due 11/01/11 1,785 1,798 Kroger Co. (The) 6.750% due 04/15/12 50 52 7.500% due 04/01/31 70 77 Lehman Brothers Holdings, Inc. 5.400% due 11/24/08 (E) 1,400 1,400 5.450% due 04/03/09 (E) 700 701 5.475% due 08/21/09 (E)(N) 900 900 5.594% due 07/18/11 (E)(N) 600 602 5.250% due 02/06/12 1,125 1,118 5.500% due 04/04/16 (N) 415 412 Series MTN (E) 5.475% due 11/16/09 600 600 Liberty Property, LP 5.500% due 12/15/16 880 861 Manufacturers & Traders Trust Co. 5.585% due 12/28/20 163 161 Marshall & Ilsley Corp. 5.350% due 04/01/11 1,795 1,789 Merrill Lynch & Co., Inc. 5.450% due 12/04/09 (E)(N) 1,000 1,000 5.577% due 07/25/11 (E) 1,100 1,103 6.220% due 09/15/26 4,210 4,275 6.110% due 01/29/37 2,670 2,637
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series MTN (E) 5.464% due 08/14/09 700 700 Series MTNB 3.125% due 07/15/08 1,490 1,443 Series MTNC 4.250% due 02/08/10 1,860 1,802 Metlife, Inc. 5.700% due 06/15/35 1,380 1,330 6.400% due 12/15/36 630 631 Midamerican Energy Co. 5.800% due 10/15/36 1,450 1,425 Midamerican Energy Holdings Co. Series WI 6.125% due 04/01/36 3,440 3,458 Miller Brewing Co. (p) 5.500% due 08/15/13 470 464 Monumental Global Funding II (p) 4.625% due 03/15/10 190 186 Morgan Stanley 3.625% due 04/01/08 195 191 3.875% due 01/15/09 1,050 1,023 5.614% due 01/22/09 (E) 400 400 5.625% due 01/09/12 690 697 4.750% due 04/01/14 280 266 5.375% due 10/15/15 415 409 5.824% due 10/18/16 (E) 220 221 Series MTN (E) 5.450% due 01/15/10 300 300 Motorola, Inc. 5.220% due 10/01/97 1,100 848 Natexis Ambs Co. LLC (f)(p) 8.440% due 12/29/49 270 280 National Rural Utilities Cooperative Finance Corp. 5.750% due 08/28/09 2,555 2,582 News America Holdings, Inc. 7.750% due 12/01/45 185 210 7.900% due 12/01/95 230 258 8.250% due 10/17/96 75 88 News America, Inc. 6.200% due 12/15/34 55 53 Series WI 6.400% due 12/15/35 3,150 3,137 Nisource Finance Corp. 7.875% due 11/15/10 520 560 Norfolk Southern Corp. 6.200% due 04/15/09 845 858 7.050% due 05/01/37 310 351
78 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 7.900% due 05/15/97 1,175 1,427 6.000% due 03/15/05 565 526 Northern States Power Co. Series B 8.000% due 08/28/12 1,615 1,811 Occidental Petroleum Corp. 9.250% due 08/01/19 185 241 Ohio Power Co. (N) Series F 5.500% due 02/15/13 35 35 ONEOK Partners, LP 6.650% due 10/01/36 725 746 Owens Corning, Inc. (p) 6.500% due 12/01/16 1,080 1,096 Pacific Gas & Electric Co. 3.600% due 03/01/09 195 188 4.200% due 03/01/11 1,005 961 6.050% due 03/01/34 650 650 Pemex Project Funding Master Trust 7.375% due 12/15/14 1,600 1,732 5.750% due 12/15/15 (N) 300 293 Series WI 6.625% due 06/15/35 390 388 Progress Energy, Inc. 7.100% due 03/01/11 228 242 5.625% due 01/15/16 210 209 7.750% due 03/01/31 170 204 7.000% due 10/30/31 110 122 ProLogis 5.625% due 11/15/15 2,010 1,993 Prudential Financial, Inc. 5.100% due 12/14/11 1,455 1,436 Rabobank Capital Funding II (f)(A) 5.260% due 12/31/49 30 29 Rabobank Capital Funding Trust (f)(A) 5.254% due 12/29/49 60 58 RBS Capital Trust III (f) 5.512% due 09/29/49 820 805 Regions Financial Corp. 4.500% due 08/08/08 1,625 1,603 Residential Capital LLC 6.125% due 11/21/08 350 351 6.000% due 02/22/11 1,345 1,338 RR Donnelley & Sons Co. 6.125% due 01/15/17 1,795 1,790 Safeway, Inc. (N) 7.250% due 02/01/31 60 64 SBC Communications, Inc. 6.150% due 09/15/34 300 295 Sigma Finance, Inc. (E)(A) 8.500% due 08/11/16 970 970 Simon Property Group, LP 4.600% due 06/15/10 1,350 1,316 4.875% due 08/15/10 1,450 1,424
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 5.750% due 12/01/15 3,685 3,720 6.100% due 05/01/16 1,415 1,462 SLM Corp. Series MTNA 4.000% due 01/15/09 1,675 1,634 5.517% due 07/27/09 (E) 600 601 Societe Generale (E) Series CD 5.299% due 06/30/08 1,800 1,800 Southern California Edison Co. (E) 5.566% due 02/02/09 600 601 Sovereign Bank 5.125% due 03/15/13 445 432 Sprint Capital Corp. 8.375% due 03/15/12 120 133 6.875% due 11/15/28 390 388 8.750% due 03/15/32 950 1,128 Sprint Nextel Corp. 6.000% due 12/01/16 5,000 4,861 State Street Bank & Trust Co. (N) Series BKNT 5.300% due 01/15/16 250 246 Suntrust Bank (N) 5.000% due 09/01/15 2,540 2,447 SunTrust Capital VIII 6.100% due 12/01/66 790 767 Time Warner Entertainment Co., LP Series * 8.375% due 07/15/33 1,980 2,410 Time Warner, Inc. 6.875% due 05/01/12 610 645 5.875% due 11/15/16 1,160 1,157 7.700% due 05/01/32 165 187 TXU Corp. Series P 5.550% due 11/15/14 150 141 Series R 6.550% due 11/15/34 640 586 TXU Electric Delivery Co. 6.375% due 05/01/12 25 26 TXU Energy Co. LLC 7.000% due 03/15/13 545 570 Unicredito Italiano NY (E) Series YCD 5.370% due 05/29/08 1,100 1,098 Unilever Capital Corp. 5.900% due 11/15/32 325 324
Diversified Bond Fund 79 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Union Pacific Corp. 3.625% due 06/01/10 625 587 United Technologies Corp. 5.400% due 05/01/35 80 76 UnitedHealth Group, Inc. 5.250% due 03/15/11 305 304 US Bancorp 5.300% due 04/28/09 1,980 1,981 US Bank NA 5.700% due 12/15/08 70 70 USB Capital IX (f) 6.189% due 04/15/49 100 102 Verizon Communications, Inc. (N) 5.350% due 02/15/11 1,120 1,118 Verizon Global Funding Corp. 7.375% due 09/01/12 130 142 5.850% due 09/15/35 700 662 Verizon Maryland, Inc. Series A 6.125% due 03/01/12 505 516 Verizon Virginia, Inc. (N) Series A 4.625% due 03/15/13 1,165 1,097 Viacom, Inc. 5.750% due 04/30/11 360 360 Wachovia Bank NA Series BKNT 5.356% due 06/27/08 (E) 800 800 5.800% due 12/01/08 340 343 Series DPNT (E) 5.406% due 03/23/09 1,500 1,500 Wachovia Capital Trust III (f) 5.800% due 03/15/42 350 352 Wachovia Corp. 5.410% due 12/01/09 (E) 100 100 5.506% due 10/15/11 (E) 1,800 1,802 5.700% due 08/01/13 3,195 3,243 5.250% due 08/01/14 725 713 Wal-Mart Stores, Inc. (E) 5.265% due 06/16/08 1,900 1,898 Waste Management, Inc. 6.375% due 11/15/12 835 868 WellPoint, Inc. 5.850% due 01/15/36 190 185 Wells Fargo & Co. 5.460% due 09/15/09 (E) 2,900 2,905 5.300% due 08/26/11 1,350 1,352 4.950% due 10/16/13 240 232 Wells Fargo Bank NA 5.750% due 05/16/16 425 432 Wells Fargo Capital X 5.950% due 12/15/86 200 197
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Westpac Banking Corp. (E) Series DPNT 5.280% due 06/06/08 500 500 Weyerhaeuser Co. 6.750% due 03/15/12 1,675 1,760 Wyeth 6.950% due 03/15/11 2,850 3,014 5.500% due 03/15/13 130 130 5.500% due 02/01/14 85 85 XTO Energy, Inc. 7.500% due 04/15/12 210 227 Zurich Capital Trust I (p) 8.376% due 06/01/37 600 628 ------------ 349,853 ------------ International Debt - 3.6% Abbey National PLC (f) 6.700% due 06/29/49 550 557 Aiful Corp. (A) 5.000% due 08/10/10 300 290 Anadarko Finance Co. Series B 7.500% due 05/01/31 770 857 ANZ National International, Ltd. (E)(p) 5.415% due 08/07/09 2,800 2,798 AXA SA 8.600% due 12/15/30 125 161 Banco Mercantil del Norte SA (A) 6.862% due 10/13/21 690 697 British Telecommunications PLC 9.125% due 12/15/30 215 295 C10 Capital SPV, Ltd. (f)(p) 6.722% due 12/01/49 600 595 China Development Bank 5.000% due 10/15/15 100 97 CIT Group Funding Co. of Canada (N) 5.600% due 11/02/11 310 311 Conoco Funding Co. 6.350% due 10/15/11 1,330 1,385 Crest, Ltd. (p) Series 2003-2A Class C2 5.709% due 12/28/38 2,130 2,082 Deutsche Telekom International Finance BV 8.000% due 06/15/10 710 765 5.750% due 03/23/16 300 295 8.250% due 06/15/30 255 312
80 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- DNB Nor Bank ASA (E)(p) 5.430% due 10/13/09 800 800 Egypt Government AID Bonds 4.450% due 09/15/15 915 871 Eksportfinans ASA 5.500% due 05/25/16 610 623 Export-Import Bank of China (p) 4.875% due 07/21/15 640 613 Export-Import Bank of Korea 4.125% due 02/10/09 (p) 290 283 5.125% due 02/14/11 235 232 Falconbridge, Ltd. 6.000% due 10/15/15 730 744 Gaz Capital for Gazprom (A) 6.212% due 11/22/16 1,850 1,827 Glitnir Banki HF (A) 6.693% due 06/15/16 570 589 Harborview NIMs Corp. (p) Series 2006-9A Class N1 6.409% due 10/19/36 532 532 HBOS PLC (f)(N)(p) 5.920% due 09/29/49 100 98 HBOS Treasury Services PLC (E)(p) Series MTN 5.420% due 07/17/09 1,300 1,301 HSBC Holdings PLC 6.500% due 05/02/36 500 533 Ispat Inland ULC 9.750% due 04/01/14 1,160 1,294 Kaupthing Bank Hf (A) 5.750% due 10/04/11 110 110 7.125% due 05/19/16 1,730 1,827 Klio Funding, Ltd. (E)(p) Series 2004-1A Class A1 5.918% due 04/23/39 2,180 2,194 Korea Electric Power Corp. (p) 5.125% due 04/23/34 145 142 Mexico Government International Bond 5.625% due 01/15/17 26 26 Series MTNA 6.750% due 09/27/34 992 1,051 Mizuho Financial Group Cayman, Ltd. (p) 5.790% due 04/15/14 445 445 MUFG Capital Finance 1, Ltd. (f) 6.346% due 07/25/49 270 272 Newcastle CDO, Ltd. (p) Series 2004-4A Class 3FX 5.110% due 03/24/39 1,090 1,025 Petrobras International Finance Co. 6.125% due 10/06/16 550 552 Petroleum Export, Ltd. (p) 5.265% due 06/15/11 89 86
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Province of Quebec Canada 5.000% due 07/17/09 (N) 40 40 Series PJ 6.125% due 01/22/11 1,520 1,569 Ras Laffan Liquefied Natural Gas Co., Ltd. II (p) 5.298% due 09/30/20 600 568 Ras Laffan Liquefied Natural Gas Co., Ltd. III (p) 5.838% due 09/30/27 300 284 Resona Bank, Ltd. (f)(p) 5.850% due 09/29/49 575 559 Resona Preferred Global Securities Cayman, Ltd. (f)(A) 7.191% due 12/29/49 375 392 Royal Bank of Scotland PLC (E) 5.424% due 07/21/08 (p) 800 800 5.760% due 07/06/12 3,300 3,302 Royal KPN NV 8.000% due 10/01/10 730 784 Russia Government International Bond 5.000% due 03/31/30 (p) 775 860 Series REGS 5.000% due 03/31/30 1,690 1,884 Santander Financial Issuances 6.375% due 02/15/11 120 124 Santander US Debt SA Unipersonal (E)(p) 5.450% due 09/19/08 4,300 4,306 Sanwa Finance Aruba AEC 8.350% due 07/15/09 510 541 Shinsei Finance Cayman, Ltd. (f)(A) 6.418% due 01/29/49 660 656 Siemens Financieringsmaatschappij NV (p) 5.424% due 08/14/09 (E) 1,500 1,500 5.750% due 10/17/16 1,445 1,454 6.125% due 08/17/26 2,960 3,007 SMFG Preferred Capital USD 1, Ltd. (f)(p) 6.078% due 01/29/49 1,400 1,377 Sumitomo Mitsui Banking Corp. (f)(p) 5.625% due 07/29/49 200 195 Systems 2001 AT LLC (p) 7.156% due 12/15/11 173 178 Talisman Energy, Inc. 6.250% due 02/01/38 3,350 3,185
Diversified Bond Fund 81 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Telecom Italia Capital SA 5.970% due 07/18/11 (E) 1,100 1,101 5.250% due 10/01/15 3,110 2,886 Telefonica Emisiones SAU (E) 5.665% due 06/19/09 1,000 1,001 Telefonica Europe BV 7.750% due 09/15/10 2,175 2,332 Telefonos de Mexico SA de CV 4.500% due 11/19/08 495 486 TELUS Corp. 8.000% due 06/01/11 1,180 1,284 TNK-BP Finance SA (A) Series 144a 7.500% due 07/18/16 430 449 Transocean, Inc. (E) 5.591% due 09/05/08 800 801 Tyco International Group SA 6.750% due 02/15/11 885 935 6.375% due 10/15/11 445 467 6.000% due 11/15/13 905 945 7.000% due 06/15/28 40 47 6.875% due 01/15/29 120 139 UFJ Finance Aruba AEC 6.750% due 07/15/13 60 64 Unicredit Luxembourg Finance SA (E)(p) 5.410% due 10/24/08 4,100 4,100 Vale Overseas, Ltd. 6.250% due 01/11/16 265 266 6.250% due 01/23/17 (N) 1,785 1,788 6.875% due 11/21/36 930 946 Vodafone Group PLC 5.750% due 03/15/16 270 269 VTB Capital SA (E)(p) 5.970% due 08/01/08 800 801 WEA Finance LLC/WCI Finance LLC (p) 5.700% due 10/01/16 3,420 3,424 Xstrata Finance Canada, Ltd. (p) 5.500% due 11/16/11 190 189 5.800% due 11/15/16 190 189 ------------ 82,041 ------------ Loan Agreements - 0.3% Starbound Reinsurance, Ltd., Term Loan B 6.900% due 03/31/08 6,000 6,000 ------------ Mortgage-Backed Securities - 49.7% Adjustable Rate Mortgage Trust (E) Series 2005-3 Class 8A2 5.560% due 07/25/35 720 721
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- American Home Mortgage Investment Trust (E) Series 2004-4 Class 4A 4.390% due 02/25/45 481 473 Series 2005-2 Class 5A2 5.470% due 09/25/35 749 749 Series 2005-3 Class 3A2 5.500% due 09/25/35 664 664 Series 2005-4 Class 1A1 5.640% due 11/25/45 1,686 1,693 Arcap Reit, Inc. (p) Series 2004-RR3 Class B 5.040% due 09/21/45 460 445 Asset Backed Funding Certificates (E) Series 2006-OPT Class A3A 5.380% due 11/25/36 1,077 1,077 Banc of America Commercial Mortgage, Inc. Series 2004-3 Class A3 4.875% due 06/10/39 1,050 1,035 Series 2004-4 Class A3 4.128% due 07/10/42 685 664 Series 2005-2 Class A4 4.783% due 07/10/43 1,205 1,172 Series 2005-3 Class A2 4.501% due 07/10/43 610 593 Series 2005-3 Class A4 4.668% due 07/10/43 1,700 1,607 Series 2005-5 Class A4 5.115% due 10/10/45 2,225 2,165 Series 2005-6 Class A1 5.001% due 09/10/47 2,563 2,538 Series 2005-6 Class A2 5.165% due 09/10/47 1,760 1,746 Series 2006-1 Class A4 5.372% due 09/10/45 420 416 Series 2006-3 Class A4 5.889% due 07/10/44 1,420 1,455 Series 2006-4 Class A4 5.634% due 07/10/46 2,035 2,050 Banc of America Funding Corp. Series 2005-5 Class 1A11 5.500% due 09/25/35 1,265 1,233 Series 2005-D Class A1 (E) 4.114% due 05/25/35 550 537 Series 2006-3 Class 5A8 5.500% due 03/25/36 1,130 1,115
82 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-A Class 3A2 5.917% due 02/20/36 5,386 5,404 Series 2006-A Class 4A1 (E) 5.567% due 02/20/36 1,574 1,566 Series 2006-B Class 7A1 (E) 5.900% due 03/20/36 1,770 1,768 Series 2006-G Class 2A1 (E) 5.540% due 07/20/36 1,646 1,647 Series 2006-G Class 2A2 (E) 5.400% due 07/20/36 1,498 1,496 Banc of America Mortgage Securities, Inc. Series 2003-9 Class 1A12 (E) 5.770% due 12/25/33 1,600 1,605 Series 2004-1 Class 5A1 6.500% due 09/25/33 38 38 Series 2004-11 Class 2A1 5.750% due 01/25/35 1,050 1,034 Series 2005-L Class 3A1 (E) 5.453% due 01/25/36 604 599 Series 2006-2 Class A15 6.000% due 07/25/36 1,284 1,293 Bank of America Alternative Loan Trust Series 2003-10 Class 2A2 (E) 5.820% due 12/25/33 602 606 Series 2003-2 Class CB2 (E) 5.820% due 04/25/33 274 275 Series 2006-5 Class CB17 6.000% due 06/25/36 980 984 Bear Stearns Adjustable Rate Mortgage Trust Series 2002-11 Class 1A1 5.625% due 02/25/33 39 39 Series 2002-11 Class 1A2 5.328% due 02/25/33 50 50 Series 2003-1 Class 6A1 5.056% due 04/25/33 144 144 Series 2004-4 Class A4 3.518% due 06/25/34 580 568 Bear Stearns Alt-A Trust Series 2005-4 Class 23A1 5.390% due 05/25/35 858 857 Series 2006-4 Class 32A1 6.483% due 07/25/36 7,730 7,851 Bear Stearns Commercial Mortgage Securities Series 2005-PWR Class A1 4.386% due 02/11/41 516 510 Series 2006-PW1 Class A1 5.044% due 12/01/38 3,515 3,476 Chase Mortgage Finance Corp. Series 2003-S8 Class A1 4.500% due 09/25/18 722 688
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-A1 Class 2A2 (E) 5.247% due 12/25/35 2,390 2,365 Series 2006-A1 Class 1A1 (E) 6.068% due 09/25/36 2,241 2,243 Series 2006-A1 Class 4A1 (E) 6.072% due 09/25/36 1,539 1,536 Series 2006-S4 Class A3 6.000% due 12/25/36 1,135 1,141 Series 2006-S4 Class A4 6.000% due 12/25/36 595 597 Citigroup Mortgage Loan Trust, Inc. Series 2005-11 Class A2A (E) 4.700% due 12/25/35 270 266 Series 2006-WF1 Class A2F 5.657% due 03/01/36 780 767 Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2006-CD3 Class A5 5.617% due 10/15/48 750 754 Citimortgage Alternative Loan Trust Series 2006-A3 Class 1A5 6.000% due 07/25/36 707 709 Commercial Mortgage Acceptance Corp. Series 1998-C2 Class A3 6.040% due 09/15/30 4,770 4,790 Countrywide Alternative Loan Trust 5.500% due 05/31/35 800 800 Series 2004-2CB Class 1A4 (E) 5.750% due 03/25/34 1,033 1,036 Series 2005-56 Class 3A1 (E) 5.610% due 11/25/35 881 883 Series 2005-56 Class 4A1 (E) 5.630% due 11/25/35 1,750 1,756 Series 2005-59 Class 1A1 (E) 5.680% due 11/20/35 2,073 2,080 Series 2005-J12 Class 2A1 (E) 5.620% due 11/25/35 1,756 1,760 Series 2005-J13 Class 2A3 5.500% due 11/25/35 383 380 Series 2005-J8 Class 1A3 5.500% due 07/25/35 940 934 Series 2006-43C Class 1A7 6.000% due 02/25/37 1,615 1,609 Series 2006-9T1 Class A7 6.000% due 05/25/36 518 521 Series 2006-J2 Class A3 6.000% due 04/25/36 771 774
Diversified Bond Fund 83 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-OA1 Class A1 (E) 5.500% due 02/20/47 889 887 Countrywide Asset-Backed Certificates (E) Series 2005-IM2 Class A3 5.620% due 01/25/36 3,475 3,480 Countrywide Home Loan Mortgage Pass Through Trust Series 2004-16 Class 1A1 (E) 5.720% due 09/25/34 861 865 Series 2005-3 Class 1A2 (E) 5.640% due 04/25/35 143 143 Series 2005-3 Class 1A3 (E) 5.590% due 04/25/35 407 407 Series 2005-R3 Class AF (p)(E)(A) 5.720% due 09/25/35 1,743 1,753 Series 2006-HYB Class 2A1A 5.758% due 05/20/36 1,123 1,127 Credit Suisse First Boston Mortgage Securities Corp. Series 2003-C5 Class A1 3.093% due 12/15/36 403 399 Series 2004-C1 Class A3 4.321% due 01/15/37 1,096 1,053 Series 2005-C4 Class A3 5.120% due 08/15/38 6,620 6,518 Series 2005-C6 Class A1 4.938% due 12/15/40 1,613 1,596 Series 2005-C6 Class A4 5.230% due 12/15/40 1,825 1,789 Credit Suisse Morgan Stanley Commercial Mortgage Trust (E)(p) Series 2006-HC1 Class A1 5.540% due 05/15/23 1,970 1,970 Credit Suisse Mortgage Capital Certificates Series 2006-C1 Class A1 4.367% due 07/15/10 520 509 Series 2006-C1 Class AAB 5.556% due 02/15/39 1,305 1,310 Series 2006-C2 Class A1 5.250% due 03/15/39 1,145 1,139 Series 2006-C2 Class A2 5.659% due 03/15/39 1,185 1,200 Series 2006-C4 Class A1 4.771% due 09/15/39 3,287 3,232 Series 2006-C4 Class A3 5.467% due 09/15/39 1,710 1,701 Series 2006-TF2 Class SVA1 (p)(E) 5.580% due 10/15/21 3,890 3,890 Series 2006-TFL Class A1 (p)(E) 5.470% due 04/15/21 1,787 1,787
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- CS First Boston Mortgage Securities Corp. Series 1998-C2 Class A2 6.300% due 11/15/30 412 416 Deutsche ALT-A Securities, Inc. Alternate Loan Trust Series 2005-AR1 Class 2A3 5.010% due 08/25/35 1,145 1,152 DLJ Commercial Mortgage Corp. Series 1998-CF1 Class A1B 6.410% due 02/18/31 688 691 Downey Savings & Loan Association Mortgage Loan Trust (E) Series 2004-AR3 Class 1A1B 7.141% due 07/19/44 292 294 Fannie Mae 7.000% due 2008 6 6 7.000% due 2009 17 17 7.000% due 2011 9 9 8.000% due 2011 2 2 5.363% due 2012 833 828 7.000% due 2012 3 4 6.500% due 2013 24 25 5.500% due 2014 29 29 6.500% due 2015 19 19 7.000% due 2015 11 11 5.500% due 2016 6 6 6.000% due 2016 64 64 6.500% due 2016 110 112 9.000% due 2016 2 3 5.000% due 2017 1,630 1,598 5.500% due 2017 867 866 6.000% due 2017 165 168 6.500% due 2017 430 440 8.000% due 2017 38 40 8.500% due 2017 5 6 4.500% due 2018 4,742 4,559 5.000% due 2018 1,900 1,860 5.500% due 2018 1,187 1,183 6.500% due 2018 318 329 4.500% due 2019 4,654 4,471 5.000% due 2019 10,940 10,713 6.500% due 2019 142 144 4.000% due 2020 6,111 5,717 4.500% due 2020 9,571 9,190 5.000% due 2020 9,525 9,327 6.500% due 2020 55 57 8.000% due 2020 6 6
84 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 4.000% due 2021 180 169 4.500% due 2021 895 859 5.000% due 2021 3,246 3,175 6.000% due 2021 978 989 6.000% due 2021 1,431 1,448 6.500% due 2022 80 82 8.000% due 2024 92 96 7.000% due 2025 7 7 8.500% due 2025 4 4 7.000% due 2026 4 5 6.500% due 2028 399 407 7.000% due 2028 354 365 6.500% due 2029 1,334 1,367 6.500% due 2030 193 198 8.000% due 2030 166 176 6.500% due 2031 744 761 6.000% due 2032 1,382 1,392 6.500% due 2032 2,254 2,307 7.000% due 2032 878 900 3.905% due 2033 (E) 806 795 4.500% due 2033 1,565 1,461 4.681% due 2033 (E) 468 470 5.000% due 2033 11,418 10,986 5.500% due 2033 35,831 35,336 6.000% due 2033 2,282 2,296 6.500% due 2033 1,339 1,366 7.000% due 2033 373 384 4.500% due 2034 751 700 5.000% due 2034 15,993 15,380 5.500% due 2034 35,527 35,019 6.000% due 2034 11,155 11,221 6.500% due 2034 2,100 2,140 4.500% due 2035 6,941 6,468 5.000% due 2035 18,066 17,348 5.500% due 2035 79,730 78,510 6.000% due 2035 10,720 10,775 6.500% due 2035 132 135 6.665% due 2035 (E) 847 875 6.666% due 2035 (E) 330 342 6.671% due 2035 (E) 417 431 6.811% due 2035 (E) 337 348 4.500% due 2036 54 50 5.000% due 2036 9,416 9,039 5.500% due 2036 2,926 2,875 6.000% due 2036 14,311 14,356 6.500% due 2036 7,219 7,337 7.000% due 2036 130 133 6.027% due 2044 (E) 324 326 Series 1992-10 Class ZD 8.000% due 11/25/21 439 441 Series 1993-134 Class H 6.500% due 08/25/08 564 565 Series 1999-56 Class Z 7.000% due 12/18/29 492 509
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2003-32 Class FH (E) 5.720% due 11/25/22 927 936 Series 2003-337 Class 1 Principal Only STRIP Zero Coupon due 07/01/33 1,211 877 Series 2003-343 Class 6 Interest Only STRIP 5.000% due 10/01/33 1,190 267 Series 2003-78 Class FI (E) 5.720% due 01/25/33 873 877 Series 2004-21 Class FL (E) 5.670% due 11/25/32 456 457 Series 2005-65 Class FP (E) 6.000% due 08/25/35 665 665 Series 2006-369 Class 8 Interest Only STRIP 5.500% due 04/01/36 955 233 15 Year TBA (I) 4.500% 1,710 1,641 5.000% 13,000 12,716 5.500% 7,660 7,627 6.000% 400 404 30 Year TBA (I) 4.500% 2,645 2,462 5.000% 63,095 60,532 5.500% 49,820 48,994 6.000% 62,345 62,556 6.500% 29,205 29,689 Fannie Mae Grantor Trust Series 2001-T6 Class B 6.088% due 05/25/11 1,150 1,187 Fannie Mae REMICS (E) Series 2006-118 Class A1 5.380% due 12/25/36 596 595 Series 2006-5 Class 3A2 4.677% due 05/25/35 200 197 Fannie Mae Whole Loan Series 2003-W1 Class 1A1 6.500% due 12/25/42 75 76 First Horizon Alternative Mortgage Securities Series 2006-AA5 Class A2 (E) 6.626% due 09/25/36 747 761 Series 2006-FA3 Class A6 6.000% due 07/25/36 655 660
Diversified Bond Fund 85 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- First Horizon Asset Securities, Inc. (E) Series 2005-AR5 Class 3A1 5.527% due 10/25/35 284 283 Freddie Mac 8.000% due 2008 1 1 8.500% due 2008 1 1 4.750% due 2009 (N) 5,220 5,174 4.500% due 2013 (N) 1,755 1,700 9.000% due 2016 39 44 4.500% due 2018 94 90 5.000% due 2018 558 546 5.000% due 2019 663 649 4.500% due 2020 521 500 4.500% due 2021 746 715 5.500% due 2033 613 605 5.000% due 2034 814 783 4.642% due 2034 (E) 472 475 5.000% due 2035 7,937 7,627 5.000% due 2036 4,536 4,359 5.971% due 2036 (E) 580 587 6.000% due 2036 684 684 6.304% due 2036 (E) 1,200 1,206 Series 1991-105 Class G 7.000% due 03/15/21 45 45 Series 2001-229 Class KF (E) 5.570% due 07/25/22 604 589 Series 2003-262 Class AB 2.900% due 11/15/14 823 797 Series 2004-277 Class UF (E) 5.620% due 06/15/33 1,135 1,137 Series 2004-281 Class DF (E) 5.770% due 06/15/23 333 335 Series 2005-292 Class IG 5.000% due 04/15/23 447 71 Series 2005-294 Class FA (E) 5.490% due 03/15/20 650 649 Series 2005-305 Class JF (E) 5.650% due 10/15/35 728 729 15 Year TBA (I) 5.000% 5,100 4,985 30 Year TBA (I) 5.000% 19,800 19,014 5.500% 29,105 28,641 6.000% 25,170 25,264 Freddie Mac Gold 7.000% due 2008 11 12 8.000% due 2009 6 6 7.000% due 2010 7 7 8.000% due 2010 1 1 6.000% due 2011 247 249 7.000% due 2011 4 4
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 8.000% due 2011 13 14 6.000% due 2012 6 6 8.000% due 2012 6 6 7.000% due 2014 60 62 12.000% due 2014 10 11 6.000% due 2016 9 9 6.000% due 2017 330 335 8.000% due 2017 16 17 4.500% due 2018 1,657 1,592 5.000% due 2018 454 444 4.500% due 2019 636 611 5.000% due 2019 420 411 5.500% due 2019 884 880 4.500% due 2020 781 750 5.000% due 2020 670 656 5.500% due 2020 2,863 2,852 9.000% due 2024 5 6 6.500% due 2025 5 5 8.500% due 2025 22 24 9.000% due 2025 8 9 9.000% due 2026 1 1 8.500% due 2027 94 100 6.500% due 2029 168 171 7.188% due 2030 (E) 5 5 6.500% due 2031 1,483 1,518 5.500% due 2032 4,747 4,685 6.000% due 2032 207 208 7.000% due 2032 265 271 5.000% due 2033 590 568 5.500% due 2033 7,138 7,043 6.000% due 2033 307 309 6.500% due 2033 601 613 4.500% due 2034 199 185 5.000% due 2034 3,268 3,147 5.500% due 2034 4,963 4,895 6.000% due 2034 1,160 1,166 6.500% due 2034 211 215 5.000% due 2035 888 854 5.500% due 2035 1,015 1,001 5.000% due 2036 3,807 3,658 Freddie Mac Reference REMIC Series 2006-R00 Class AK 5.750% due 12/15/18 824 823 Series 2006-R00 Class FK (E) 5.720% due 07/15/23 1,993 2,003
86 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Freddie Mac REMICS Series 2003-256 Class FJ (E) 5.720% due 02/15/33 686 692 Series 2003-269 Class FE (E) 5.920% due 12/15/28 952 960 Series 2004-277 Class KE 3.500% due 12/15/17 471 467 Series 2005-299 Class KF (E) 5.720% due 06/15/35 391 392 Series 2006-314 Class LF (E) 5.620% due 05/15/36 600 601 Series 2006-323 Class PA 6.000% due 03/15/26 1,215 1,227 GE Capital Commercial Mortgage Corp. Series 2005-C1 Class A1 4.012% due 06/10/48 560 549 Series 2005-C1 Class A5 4.772% due 06/10/48 620 591 Series 2006-C1 Class A4 5.339% due 03/10/44 1,250 1,240 Ginnie Mae 30 Year TBA (I) 5.500% 10,670 10,560 6.000% 3,100 3,129 6.500% 4,000 4,091 Ginnie Mae I 6.500% due 2008 4 4 6.500% due 2009 105 106 7.000% due 2011 1 1 9.500% due 2016 1 1 10.500% due 2020 12 13 8.000% due 2022 25 26 8.500% due 2022 9 10 9.000% due 2025 219 235 8.000% due 2025 35 38 7.000% due 2029 6 6 8.000% due 2030 350 372 8.500% due 2030 6 6 7.000% due 2031 378 391 8.000% due 2031 2 2 7.000% due 2032 11 11 8.000% due 2032 16 17 5.000% due 2033 3,821 3,694 5.000% due 2035 671 648 6.000% due 2035 5,537 5,591 Ginnie Mae II 5.125% due 2023 (E) 283 285 5.375% due 2023 (E) 191 192 5.375% due 2024 (E) 48 48 4.500% due 2035 974 907
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- GMAC Commercial Mortgage Securities, Inc. Series 2001-C1 Class A2 6.465% due 04/15/34 760 786 Series 2005-C1 Class A2 4.471% due 05/10/43 605 589 GMAC Mortgage Corp. Loan Trust Series 2005-AR6 Class 3A1 5.299% due 11/19/35 1,008 998 Series 2006-AR1 Class 1A1 (E) 5.627% due 03/19/36 2,408 2,401 Government National Mortgage Association (E) Series 1999-40 Class FE 5.870% due 11/16/29 615 620 Greenpoint Mortgage Funding Trust (E) Series 2006-AR5 Class A1A 5.430% due 10/25/46 2,820 2,821 Series 2006-AR6 Class A1A 5.430% due 10/25/46 1,093 1,093 Series 2006-AR8 Class 1A1A 5.430% due 01/25/47 900 900 Greenwich Capital Commercial Funding Corp. Series 2004-GG1 Class A7 5.317% due 06/10/36 1,885 1,866 Series 2005-GG3 Class A1 3.919% due 08/10/42 820 805 Series 2005-GG5 Class A41 5.243% due 04/10/37 525 520 Series 2006-RR1 Class A1 (p) 5.781% due 03/18/49 855 866 GS Mortgage Securities Corp. II Series 1998-C1 Class A2 6.620% due 10/18/30 1,276 1,289 Series 2005-GG4 Class AABA 4.680% due 07/10/39 800 771 Series 2006-FL8 Class A1 (p)(E) 5.420% due 06/06/20 3,350 3,350 Series 2006-GG6 Class A4 5.553% due 04/10/38 420 421 Series 2006-GG8 Class AAB 5.535% due 11/10/39 805 806 GSMPS Mortgage Loan Trust (E)(p) Series 2004-4 Class 1AF 5.750% due 06/25/34 1,484 1,492 Harborview Mortgage Loan Trust Series 2004-4 Class 3A (E) 2.975% due 06/19/34 2,262 2,258
Diversified Bond Fund 87 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-14 Class 3A1A 5.320% due 12/19/35 289 288 Series 2005-2 Class 2A1A (E) 5.570% due 05/19/35 239 239 Series 2006-14 Class 2A1A (E) 5.470% due 02/19/37 4,792 4,792 Series 2006-2 Class 1A 5.454% due 02/25/36 738 750 Series 2006-3 Class 1A1A (E) 6.445% due 06/19/36 7,632 7,745 HSI Asset Securitization Corp. Trust (E) Series 2005-I1 Class 2A1 5.470% due 11/25/35 1,316 1,316 Impac CMB Trust (E) Series 2004-3 Class 1A 5.570% due 06/25/34 137 137 Impac Secured Assets CMN Owner Trust (E) Series 2005-2 Class A1 5.670% due 03/25/36 1,848 1,854 Series 2006-4 Class A2A 5.400% due 01/25/37 880 880 Indymac Index Mortgage Loan Trust Series 2005-AR1 Class A2 5.099% due 09/25/35 459 443 Series 2006-AR1 Class 1A1A (E) 5.440% due 11/25/46 747 747 Series 2006-AR2 Class A2 (E) 5.400% due 11/25/36 824 824 Series 2006-AR3 Class 2A1A 6.415% due 03/25/36 10,449 10,588 Indymac Loan Trust (E) Series 2004-L1 Class A1 (p) 5.630% due 07/25/09 245 246 Series 2005-L1 Class A 5.550% due 06/25/10 1,080 1,082 Series 2005-L2 Class A1 5.570% due 01/25/11 2,770 2,775 JP Morgan Alternative Loan Trust Series 2006-A2 Class 1A2 (E) 5.430% due 05/25/36 2,793 2,792 Series 2006-A2 Class 3A1 5.949% due 05/25/36 3,963 3,993 Series 2006-A2 Class 5A1 6.340% due 05/25/36 2,241 2,253 Series 2006-A3 Class 1A2 (E) 5.390% due 07/25/36 1,661 1,659 Series 2006-A4 Class A4 (E) 5.576% due 08/25/36 1,351 1,350 Series 2006-A6 Class 1A2 (E) 5.390% due 11/25/36 2,059 2,057 Series 2006-S4 Class A1B (E) 5.430% due 12/25/36 4,090 4,093
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- JP Morgan Chase Commercial Mortgage Securities Corp. Series 2003-CB7 Class A3 4.449% due 01/12/38 1,250 1,208 Series 2004-LN2 Class A1 4.475% due 07/15/41 838 811 Series 2005-CB1 Class A1 4.520% due 08/12/37 1,263 1,244 Series 2005-CB1 Class A2 5.247% due 01/12/43 3,515 3,494 Series 2005-CB1 Class A4 4.895% due 09/12/37 80 77 Series 2005-FL1 Class A1 (p)(E) 5.600% due 02/15/19 1,128 1,128 Series 2005-LDP Class A1 5.035% due 12/15/44 4,380 4,339 4.116% due 03/15/46 593 583 Series 2005-LDP Class A3 4.959% due 08/15/42 915 892 5.208% due 12/15/44 4,355 4,312 Series 2005-LDP Class A3A1 4.871% due 10/15/42 2,590 2,529 Series 2005-LDP Class A4 4.918% due 10/15/42 900 863 5.179% due 12/15/44 1,940 1,908 Series 2006-CB1 Class A1 5.279% due 12/12/43 1,009 1,006 Series 2006-CB1 Class A3A (p) 5.491% due 12/12/44 1,875 1,879 Series 2006-CB1 Class A4 5.814% due 06/12/43 985 1,006 5.429% due 12/12/43 1,780 1,760 5.481% due 12/12/44 630 628 5.817% due 05/12/45 2,370 2,373 Series 2006-CB1 Class ASB 5.506% due 12/12/44 500 500 Series 2006-FL1 Class A1A (p)(E) 5.440% due 02/15/20 3,494 3,494 Series 2006-LDP Class A1S 5.179% due 05/15/47 7,423 7,372 Series 2006-LDP Class A4 5.876% due 04/15/45 3,910 4,032 5.561% due 05/15/45 1,160 1,148 JP Morgan Mortgage Trust Series 2005-A2 Class 3A1 4.906% due 04/25/35 1,476 1,457
88 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-A3 Class 6A1 4.909% due 06/25/35 2,135 2,110 Series 2005-A6 Class 2A2 4.977% due 08/25/35 1,474 1,456 Series 2006-A2 Class 1A1 5.468% due 04/25/36 2,314 2,300 Series 2006-A6 Class 3A1 6.162% due 10/25/36 1,956 1,939 Series 2007-A1 Class 3A2 (E) 5.012% due 07/25/35 7,045 6,972 LB-UBS Commercial Mortgage Trust Series 2001-C3 Class A1 6.058% due 06/15/20 167 169 Series 2003-C3 Class A1 2.599% due 05/15/27 648 631 Series 2004-C2 Class A1 2.946% due 03/15/29 1,714 1,645 Series 2004-C4 Class A3 4.983% due 06/15/29 1,455 1,447 Series 2005-C3 Class A5 4.739% due 07/15/30 480 456 Series 2005-C3 Class AAB 4.664% due 07/15/30 600 578 Series 2006-C4 Class A4 5.899% due 06/15/38 430 444 Lehman Brothers Floating Rate Commercial Mortgage Trust (E)(p) Series 2006-LLF Class A1 5.400% due 09/15/21 639 639 Lehman Mortgage Trust Series 2005-3 Class 1A3 5.500% due 01/25/36 1,594 1,594 Lehman XS Trust (E) Series 2005-5N Class 1A1 5.650% due 11/25/35 1,334 1,337 Mach One Trust Commercial Mortgage-Backed (p) Series 2004-1A Class A3 5.220% due 05/28/40 1,480 1,443 Mastr Adjustable Rate Mortgages Trust Series 2006-2 Class 3A1 4.848% due 01/25/36 1,216 1,199 Mastr Alternative Loans Trust Series 2003-4 Class B1 5.664% due 06/25/33 476 477 Series 2004-10 Class 5A6 5.750% due 09/25/34 690 677 Mastr Asset Securitization Trust Series 2003-11 Class 6A8 (E) 5.820% due 12/25/33 1,045 1,050 Series 2003-7 Class 4A35 (E) 5.720% due 09/25/33 1,087 1,088
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2004-4 Class 2A2 (E) 5.770% due 04/25/34 441 441 Series 2005-2 Class 1A1 5.250% due 11/25/35 1,744 1,716 Mastr Reperforming Loan Trust (A) Series 2005-1 Class 1A1 6.000% due 08/25/34 762 761 Merrill Lynch Floating Trust (E)(p) Series 2006-1 Class A1 5.420% due 06/15/22 3,903 3,903 Merrill Lynch Mortgage Trust Series 2004-MKB Class A2 4.353% due 02/12/42 925 903 Series 2005-LC1 Class A1 5.017% due 01/12/44 1,567 1,553 Series 2005-LC1 Class A2 5.202% due 01/12/44 1,795 1,782 Series 2005-MKB Class A1 4.446% due 09/12/42 1,130 1,111 Series 2006-C1 Class A4 5.844% due 05/12/39 900 914 Merrill Lynch/Countrywide Commercial Mortgage Trust Series 2006-3 Class A2 5.291% due 07/12/46 1,975 1,963 Series 2006-4 Class A1 3.642% due 12/12/49 1,602 1,535 MLCC Mortgage Investors, Inc. (E) Series 2004-HB1 Class A2 5.771% due 04/25/29 189 189 Morgan Stanley Capital I Series 2004-HQ3 Class A1 3.100% due 01/13/41 421 413 Series 2004-RR2 Class A2 (p) 5.450% due 10/28/33 1,575 1,553 Series 2005-HQ5 Class A4 5.168% due 01/14/42 1,150 1,124 Series 2005-HQ6 Class A4A 4.989% due 08/13/42 720 695 Series 2005-IQ1 Class AAB 5.178% due 09/15/42 985 972 Series 2005-IQ9 Class A1 3.990% due 07/15/56 669 654 Series 2005-T17 Class A5 4.780% due 12/13/41 285 272 Series 2006-HQ8 Class A4 5.388% due 03/12/44 1,120 1,118 Series 2006-HQ9 Class A4 5.731% due 07/20/44 820 831
Diversified Bond Fund 89 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Morgan Stanley Dean Witter Capital I Series 2001-TOP Class A3 6.200% due 07/15/33 253 253 Morgan Stanley Mortgage Loan Trust Series 2006-11 Class 1A6 6.231% due 08/25/36 905 918 Series 2006-3AR Class 2A3 5.901% due 03/25/36 771 776 Mortgage Capital Funding, Inc. Series 1998-MC2 Class A2 6.423% due 06/18/30 1,240 1,247 Nomura Asset Securities Corp. Series 1998-D6 Class A1B 6.590% due 03/15/30 967 977 Novastar NIMs Trust (p) Series 2005-N1 4.777% due 10/26/35 29 29 Popular ABS Mortgage Pass-Through Trust (E) Series 2006-E Class A1 5.410% due 12/25/36 3,251 3,250 Prime Mortgage Trust Series 2004-CL1 Class 1A2 (E) 5.720% due 02/25/34 100 101 Series 2004-CL1 Class 2A2 (E) 5.720% due 02/25/19 23 23 Series 2006-DR1 Class 1A1 (A) 5.500% due 05/25/35 1,834 1,818 Series 2006-DR1 Class 1A2 (A) 6.000% due 05/25/35 859 863 Series 2006-DR1 Class 2A1 (A) 5.500% due 05/25/35 3,989 3,953 Series 2006-DR1 Class 2A2 (A) 6.000% due 11/25/36 2,816 2,807 Residential Accredit Loans, Inc. Series 2004-QS5 Class A6 (E) 5.950% due 04/25/34 177 178 Series 2004-QS8 Class A4 (E) 5.750% due 06/25/34 882 885 Series 2005-QA1 Class A41 5.717% due 09/25/35 1,091 1,084 Series 2005-QA8 Class NB3 5.500% due 07/25/35 625 624 Series 2005-QO3 Class A1 (E) 5.750% due 10/25/45 1,657 1,662 Series 2006-QA1 Class A21 5.994% due 01/25/36 3,397 3,411 Series 2006-QO7 Class 3A2 (E) 5.525% due 09/25/46 1,940 1,937 Series 2006-QS6 Class 1A13 6.000% due 06/25/36 1,810 1,816 Residential Asset Securities Corp. (E) Series 2003-KS4 Class AIIB 5.640% due 06/25/33 213 213
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Residential Asset Securitization Trust (E) Series 2003-A15 Class 1A2 5.770% due 02/25/34 1,029 1,032 Residential Funding Mortgage Securities I (E) Series 2003-S14 Class A5 5.750% due 07/25/18 558 560 Series 2003-S20 Class 1A7 5.850% due 12/25/33 159 159 Series 2003-S5 Class 1A2 5.800% due 11/25/18 522 525 Sequoia Mortgage Trust (E) Series 2004-3 Class A 5.306% due 04/20/34 1,102 1,102 Small Business Administration Series 1999-P10 Class 1 7.540% due 08/10/09 412 426 Series 2000-10B Class 1 7.452% due 09/01/10 1,200 1,255 Small Business Administration Participation Certificates Series 2005-20G Class 1 4.750% due 07/01/25 2,847 2,740 Structured Adjustable Rate Mortgage Loan Trust (E) Series 2005-19X Class 1A1 5.670% due 10/25/35 1,267 1,272 Structured Asset Mortgage Investments, Inc. (E) Series 2006-AR6 Class 1A3 5.510% due 07/25/36 2,448 2,452 Structured Asset Securities Corp. Series 2004-21X Class 1A3 4.440% due 12/25/34 1,515 1,495 Thornburg Mortgage Securities Trust (E) Series 2003-2 Class A1 5.690% due 04/25/43 699 700 Series 2005-3 Class A3 5.390% due 10/25/35 2,133 2,136 Series 2006-1 Class A2 5.500% due 01/25/36 2,624 2,619 Series 2006-2 Class A1B 5.400% due 04/25/36 1,398 1,396 Series 2006-5 Class A1 5.440% due 08/25/36 1,899 1,895
90 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-6 Class A1 5.430% due 12/25/36 900 899 Wachovia Bank Commercial Mortgage Trust Series 2003-C9 Class A1 3.291% due 12/15/35 1,106 1,077 Series 2005-C16 Class A2 4.380% due 10/15/41 1,510 1,468 Series 2005-C17 Class A1 4.430% due 03/15/42 2,924 2,877 Series 2005-C22 Class A3 5.286% due 12/15/44 2,685 2,671 Series 2006-WL7 Class A1 (p)(E) 5.410% due 09/15/21 3,023 3,023 Washington Mutual Alternative Mortgage Pass-Through Certificates Series 2005-4 Class CB11 5.500% due 06/25/35 375 365 Washington Mutual, Inc. Series 2002-AR1 Class 1A (E) 5.864% due 11/25/42 262 263 Series 2003-S9 Class A2 (E) 5.900% due 10/25/33 941 945 Series 2004-AR1 Class A1B1 (E) 5.665% due 11/25/34 105 105 Series 2005-AR1 Class 1A1 4.838% due 10/25/35 954 940 Series 2005-AR1 Class A1A1 (E) 5.640% due 10/25/45 1,720 1,722 Series 2005-AR1 Class A1A2 (E) 5.610% due 11/25/45 1,688 1,693 5.610% due 12/25/45 2,903 2,912 Series 2005-AR1 Class A1C1 (E) 5.510% due 12/26/45 124 124 Series 2005-AR6 Class B3 (E) 6.010% due 04/25/45 588 587 Series 2006-AR1 Class 2A (E) 5.846% due 09/25/46 792 792 Wells Fargo Mortgage Backed Securities Trust Series 2006-2 Class 2A3 5.500% due 03/25/36 1,219 1,213 Series 2006-AR2 Class 2A1 4.950% due 03/25/36 1,002 987 Zuni Mortgage Loan Trust (E) Series 2006-OA1 Class A1 5.450% due 08/25/36 2,145 2,143 ------------ 1,139,850 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Municipal Bonds - 0.2% Badger TOB Asset Securitization Corp. Revenue Bonds, weekly demand 6.375% due 06/01/32 700 763 Golden State Tobacco Securitization Corp. Revenue Bonds, weekly demand 5.000% due 06/01/21 495 496 New York City Municipal Water Finance Authority Revenue Bonds, weekly demand 4.750% due 06/15/38 1,700 1,736 Tobacco Settlement Financing Corp. Revenue Bonds, weekly demand 5.500% due 06/01/26 1,500 1,591 ------------ 4,586 ------------ Non-US Bonds - 0.1% Bundesrepublik Deutschland Series 04 3.750% due 01/04/15 EUR 1,110 1,414 Canadian Government Bond 4.000% due 12/01/31 CAD 155 190 Poland Government Bond Series 1013 5.000% due 10/24/13 PLN 2,970 988 Quebec Residual Principal Only STRIP Zero coupon due 12/01/36 CAD 1,200 249 ------------ 2,841 ------------ United States Government Agencies - 4.1% Fannie Mae 3.500% due 03/28/08 1,925 1,888 2.500% due 06/15/08 (N) 4,270 4,119 5.400% due 04/13/09 150 150 4.875% due 04/15/09 (N) 3,330 3,314 7.250% due 01/15/10 (N) 3,965 4,197 3.875% due 02/15/10 (N) 1,630 1,576 4.750% due 04/19/10 3,845 3,796 4.125% due 05/15/10 (N) 165 160 7.125% due 06/15/10 1,000 1,063 4.250% due 08/15/10 (N) 11,230 10,934 5.125% due 04/15/11 (N) 5,960 5,967 6.000% due 05/15/11 1,100 1,138 5.000% due 10/15/11 1,140 1,136 Zero coupon due 07/05/14 2,570 1,769 5.250% due 03/24/15 730 718 5.000% due 02/13/17 (N) 525 517
Diversified Bond Fund 91 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 5.000% due 04/26/17 (N) 1,755 1,681 6.625% due 11/15/30 (N) 575 673 6.210% due 08/06/38 240 269 Federal Farm Credit Bank 5.125% due 08/25/16 1,010 1,011 Federal Home Loan Bank System 5.400% due 01/02/09 640 639 5.000% due 09/18/09 (N) 11,630 11,612 4.375% due 03/17/10 1,195 1,171 5.375% due 08/19/11 (N) 330 334 4.875% due 11/18/11 1,100 1,091 5.375% due 05/15/19 500 503 5.125% due 08/15/19 420 416 5.625% due 06/11/21 1,255 1,294 5.500% due 07/15/36 840 860 Series 567 4.375% due 09/17/10 400 392 Series VB15 (N) 5.000% due 12/21/15 1,920 1,900 Financing Corp. Principal Only STRIP Zero coupon due 09/26/19 1,340 691 Series 1 Zero coupon due 05/11/16 185 115 Series 12P Zero coupon due 12/06/18 765 413 Series 13 Zero coupon due 12/27/16 645 388 Series 13P Zero coupon due 12/27/18 1,620 871 Series 16P Zero coupon due 04/05/19 875 463 Series 19 Zero coupon due 06/06/16 545 337 Series 1P Zero coupon due 05/11/18 90 50 Series 3P Zero coupon due 11/30/17 395 226 Series 5P Zero coupon due 02/08/18 155 88 Series 8P Zero coupon due 08/03/18 1,455 801 Series 9P Zero coupon due 10/06/17 710 410 Series A-P Zero coupon due 10/06/17 345 199 Series B-P Zero coupon due 04/06/18 785 440 Series C-P Zero coupon due 11/30/17 1,170 669 Series E-P Zero coupon due 11/02/18 1,105 600
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Freddie Mac 5.250% due 05/21/09 (N) 2,735 2,743 6.875% due 09/15/10 950 1,006 5.625% due 03/15/11 910 927 5.750% due 01/15/12 (N) 3,485 3,582 5.125% due 07/15/12 (N) 4,210 4,212 4.875% due 11/15/13 (N) 1,290 1,272 5.050% due 01/26/15 (N) 1,485 1,478 5.250% due 04/18/16 (N) 265 267 5.500% due 07/18/16 (N) 1,880 1,928 5.125% due 10/18/16 (N) 1,550 1,546 6.750% due 03/15/31 130 155 5.625% due 11/23/35 720 682 Tennessee Valley Authority 6.150% due 01/15/38 2,145 2,401 ------------ 95,248 ------------ United States Government Treasuries - 13.0% United States Treasury Inflation Indexed Bonds 0.875% due 04/15/10 436 415 2.375% due 04/15/11 (N) 4,234 4,222 3.375% due 01/15/12 (N) 2,616 2,733 2.000% due 07/15/14 (N) 3,822 3,717 1.625% due 01/15/15 158 149 1.875% due 07/15/15 3,750 3,603 2.500% due 07/15/16 4,410 4,452 2.375% due 01/15/25 (N) 6,040 6,002 2.000% due 01/15/26 (N) 3,533 3,313 2.000% due 01/15/27 580 577 3.625% due 04/15/28 (N) 623 750 3.875% due 04/15/29 123 154 United States Treasury Notes 3.000% due 02/15/08 130 127 3.375% due 02/15/08 300 295 4.750% due 12/31/08 (N) 15,700 15,649 3.875% due 05/15/09 580 567 4.000% due 06/15/09 (N) 1,720 1,686 3.375% due 10/15/09 (N) 10,765 10,363 3.625% due 01/15/10 (N) 11,680 11,291 4.000% due 03/15/10 (N) 15,115 14,753 4.000% due 04/15/10 230 224 4.125% due 08/15/10 1,560 1,525
92 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 3.875% due 09/15/10 (N) 7,430 7,199 4.500% due 02/28/11 880 870 4.875% due 04/30/11 (N) 30,465 31,517 4.625% due 08/31/11 (N) 11,095 11,006 4.625% due 10/31/11 70 69 4.750% due 01/31/12 240 239 4.000% due 11/15/12 (N) 7,130 6,844 4.250% due 08/15/13 (N) 7,355 7,608 12.000% due 08/15/13 (N) 315 348 4.250% due 11/15/13 (N) 21,090 21,405 4.750% due 05/15/14 (N) 7,655 7,620 13.250% due 05/15/14 (N) 510 601 12.500% due 08/15/14 (N) 760 897 4.250% due 11/15/14 (N) 3,375 3,251 4.125% due 05/15/15 (N) 11,410 10,870 4.250% due 08/15/15 (N) 5,175 4,968 5.125% due 05/15/16 (N) 4,395 4,489 4.875% due 08/15/16 880 883 4.625% due 11/15/16 350 345 8.750% due 05/15/17 (N) 1,765 2,313 8.125% due 08/15/19 (N) 7,130 9,223 8.125% due 08/15/21 (N) 16,770 23,119 Principal Only STRIP Zero coupon due 11/15/21 (N) 3,640 1,728 7.125% due 02/15/23 (N) 13,795 17,959 6.000% due 02/15/26 (N) 13,235 14,806 6.125% due 08/15/29 (N) 825 950 5.375% due 02/15/31 (N) 3,375 3,561 4.500% due 02/15/36 18,600 17,385 ------------ 298,640 ------------ TOTAL LONG-TERM INVESTMENTS (cost $2,173,764) 2,168,251 ------------ PREFERRED STOCKS - 0.1% Auto and Transportation - 0.0% General Motors Corp. 18,625 406 ------------ Financial Services - 0.1% DG Funding Trust (E)(A) 240 2,526 ------------ TOTAL PREFERRED STOCKS (cost $2,878) 2,932 ------------
NOTIONAL MARKET AMOUNT VALUE $ $ - ----------------------------------------------------------------------------- OPTIONS PURCHASED - 0.0% (Number of Contracts) Eurodollar Futures Jun 2007 91.20 Put (185) 463 1 Sep 2007 90.50 Put (200) 500 1 Sep 2007 90.75 Put (166) 415 1 Sep 2007 91.00 Put (60) 150 1 Sep 2007 91.25 Put (198) 495 1 Dec 2007 91.25 Put (515) 1,288 3 Mar 2008 91.75 Put (700) 1,750 5 Mar 2008 92.25 Put (521) 1,303 5 ------------ TOTAL OPTIONS PURCHASED (cost $24) 18 ------------
PRINCIPAL AMOUNT ($) OR SHARES ------------ SHORT-TERM INVESTMENTS - 19.2% Allstate Life Global Funding Trusts 3.850% due 01/25/08 1,865 1,836 American General Finance Corp. (E) Series MTNG 5.406% due 03/23/07 100 100 AT&T Wireless Services, Inc. 7.500% due 05/01/07 3,650 3,666 AT&T, Inc. (p) 4.214% due 06/05/07 1,100 1,100 BNP Paribas 5.293% due 07/03/07 4,300 4,297 Capital One Auto Finance Trust Series 2006-C Class A1 5.340% due 12/14/07 700 700 ChevronTexaco Capital Co. 3.500% due 09/17/07 590 584 CIT Group, Inc. 5.574% due 02/15/07 (E) 2,000 2,000 5.750% due 09/25/07 155 155 Countrywide Home Loans, Inc. Series MTNK 5.500% due 02/01/07 (c) 110 110 Daimlerchrysler NA Holding Corp. 5.345% due 06/22/07 (z) 2,000 1,957 DaimlerChrysler NA Holding Corp. 4.750% due 01/15/08 300 297 Dexia Delaware LLC 5.260% due 02/01/07 (z) (c) 2,400 2,400 Fannie Mae Discount Notes Zero Coupon due 06/25/07 500 490
Diversified Bond Fund 93 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Ford Motor Credit Co. 6.315% due 03/21/07 (E) 1,800 1,800 4.950% due 01/15/08 410 404 France Treasury Bills BTF Zero Coupon due 04/05/07 1,000 1,295 French Treasury Note BTAN 2.250% due 03/12/07 600 781 General Electric Capital Corp. 5.443% due 03/09/07 (E) 2,200 2,200 5.200% due 07/30/07 (z) 4,300 4,188 Series MTNA 4.250% due 01/15/08 280 277 GMAC LLC 6.125% due 08/28/07 970 970 Golden West Financial Corp. 4.125% due 08/15/07 220 218 Goldman Sachs Group, Inc. (E)(N) Series MTNB 5.464% due 03/30/07 2,000 2,000 Harrah's Operating Co., Inc. 7.125% due 06/01/07 1,040 1,044 HSBC Finance Corp. 5.590% due 02/09/07 (E) 2,000 2,000 4.625% due 01/15/08 1,060 1,052 IXIS Corp. 5.260% due 02/23/07 (z) 11,700 11,662 Metropolitan Life Global Funding I (E)(p) 5.431% due 03/16/07 2,000 2,000 Morgan Stanley (E) Series MTNF 5.499% due 01/18/08 1,400 1,402 Russell Investment Company Money Market Fund 315,574,031 315,574 Skandinaviska Enskilda Banken 5.235% due 03/05/07 (z) 5,700 5,673 5.273% due 07/06/07 (z) 2,400 2,399 Societe Generale 5.258% due 06/11/07 (z) 701 700 Societe Generale NA 5.225% due 05/10/07 1,800 1,793 TELUS Corp. 7.500% due 06/01/07 1,070 1,076 Total SA 5.260% due 02/01/07 (c)(z) 11,700 11,700 UBS Financial Del LLC 5.225% due 06/01/07 12,900 12,700 United States Treasury Bills (c)(z)(sec.) 4.961% due 02/15/07 75 75 4.960% due 02/15/07 15 15
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 4.908% due 02/15/07 30 30 4.886% due 02/15/07 170 170 4.856% due 02/15/07 15 15 4.829% due 02/15/07 10 10 4.843% due 02/15/07 25 25 4.854% due 02/15/07 75 75 4.991% due 02/15/07 45 45 5.035% due 02/15/07 220 220 5.131% due 02/15/07 150 150 5.036% due 03/01/07 760 757 1.301% due 03/15/07 200 198 1.388% due 03/15/07 100 99 2.214% due 03/15/07 200 198 4.932% due 03/15/07 1,460 1,452 4.937% due 03/15/07 450 447 4.969% due 03/15/07 500 497 United States Treasury Notes 3.125% due 05/15/07 1,805 1,795 4.375% due 05/15/07 (N) 4,185 4,176 6.625% due 05/15/07 1,920 1,928 4.375% due 12/31/07 (N) 11,505 11,435 Westpac Banking Corp. 5.250% due 02/06/07 (z) 12,600 12,578 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $436,663) 440,990 ------------ OTHER SECURITIES - 18.5% Russell Investment Company Money Market Fund (X) 104,792,810 104,793 State Street Securities Lending Quality Trust (X) 319,505,998 319,506 ------------ TOTAL OTHER SECURITIES (cost $424,299) 424,299 ------------ TOTAL INVESTMENTS - 132.4% (identified cost $3,042,107) 3,036,490 OTHER ASSETS AND LIABILITIES, NET - (32.2%) (743,641) ------------ NET ASSETS - 100.0% 2,292,849 ============
See accompanying notes which are an integral part of the schedules of investments. 94 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Euribor Futures expiration date 09/07 (40) 12,492 (46) expiration date 12/07 (78) 24,355 (38) expiration date 03/08 (10) 3,123 (10) expiration date 06/08 (5) 1,562 (5) Eurodollar Futures (CME) expiration date 06/07 (126) 29,816 (67) expiration date 09/07 (1,474) 349,135 (1,110) expiration date 12/07 (1,368) 324,336 (870) expiration date 03/08 (584) 138,539 (257) expiration date 06/08 (173) 41,055 (36) expiration date 09/08 (173) 41,066 (37) expiration date 12/08 (234) 55,549 (55) Euroyen Futures expiration date 09/07 (34) 6,989 11 expiration date 12/07 (41) 8,420 12 Germany, Federal Republic 10 Year Bonds expiration date 03/07 (30) 4,495 (71) LIBOR Futures expiration date 03/07 (72) 16,674 14 expiration date 06/07 (14) 3,238 (20) expiration date 09/07 (15) 3,469 (22) expiration date 12/07 (40) 9,254 (54) expiration date 03/08 (10) 2,314 (14) expiration date 06/08 (8) 1,851 (11) expiration date 09/08 (11) 2,546 (16) United States Treasury Bonds expiration date 03/07 (136) 14,977 (314) United States Treasury 2 Year Notes expiration date 03/07 (400) 81,438 (376) United States Treasury 5 Year Notes expiration date 03/07 (1,137) 118,852 (1,035) United States Treasury 10 Year Notes expiration date 03/07 (589) 62,876 (797)
- ------------------------------------------------------------------------------------
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT DEPRECIATION) (NUMBER OF CONTRACTS) $ $ Short Positions United States Treasury Bonds expiration date 03/07 (144) 15,858 432 United States Treasury 10 Year Notes expiration date 03/07 (136) 14,518 230 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (4,562) ===============
See accompanying notes which are an integral part of the schedules of investments. Diversified Bond Fund 95 RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Eurodollar Futures Mar 2007 94.75 Put (12) 2,843 (4) Mar 2007 95.25 Put (14) 3,334 (22) United States Treasury Bonds Feb 2007 109.00 Call (1) 116 -- Feb 2007 109.00 Put (27) 2,943 (7) Feb 2007 110.00 Put (1) 110,000 (1) Feb 2007 112.00 Put (15) 1,680 (30) May 2007 111.00 Call (19) 2,109 (17) United States Treasury Notes 2 Year Futures Feb 2007 102.00 Call (570) 116,280 (285) Feb 2007 101.75 Put (114) 23,199 (23) United States Treasury Notes 5 Year Futures May 2007 106.00 Call (457) 48,442 (71) United States Treasury Notes 10 Year Futures Feb 2007 106.00 Call (30) 3,180 (27) Feb 2007 108.00 Call (30) 3,240 (2) Feb 2007 109.00 Call (28) 3,052 -- Feb 2007 110.00 Call (16) 1,760 -- Feb 2007 107.00 Put (28) 2,996 (15) May 2007 106.00 Put (19) 2,014 (11) --------------- Total Liability for Options Written (premiums received $292) (515) ===============
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 582 AUD 745 02/21/07 (4) USD 904 CAD 1,068 02/07/07 4 USD 799 CAD 943 02/22/07 3 USD 363 CNY 2,809 03/19/07 1 USD 1,441 EUR 1,112 02/07/07 10 USD 3,126 EUR 2,430 02/07/07 43 USD 702 EUR 550 03/23/07 16 USD 849 EUR 660 03/23/07 14 USD 3,169 EUR 2,430 05/09/07 11 USD 86 GBP 44 02/22/07 -- USD 437 GBP 226 02/22/07 7
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 2,870 JPY 338,388 02/07/07 (63) USD 8,009 JPY 934,700 02/15/07 (249) USD 3,162 JPY 368,020 03/20/07 (92) USD 2,822 JPY 338,388 05/09/07 19 USD 1,015 PLN 3,025 02/07/07 (5) USD 136 SGD 208 04/30/07 -- USD 128 TWD 4,140 02/22/07 (2) CAD 943 USD 798 02/01/07 (3) CAD 1,068 USD 948 02/07/07 40 CAD 861 USD 733 02/22/07 1 CAD 1,068 USD 906 05/09/07 (4) EUR 1,112 USD 1,402 02/07/07 (48) EUR 2,430 USD 3,157 02/07/07 (11) EUR 2,879 USD 3,739 02/27/07 (18) EUR 1,112 USD 1,446 05/09/07 (10) GBP 154 USD 299 02/22/07 (4) JPY 338,388 USD 2,789 02/07/07 (18) JPY 1,014,769 USD 8,377 02/15/07 (49) PLN 3,025 USD 981 02/07/07 (29) PLN 3,025 USD 1,018 05/09/07 5 -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (435) ==============
See accompanying notes which are an integral part of the schedules of investments. 96 Diversified Bond Fund RUSSELL INVESTMENT COMPANY DIVERSIFIED BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INTEREST RATE SWAPS CONTRACTS - --------------------------------------------------------------------------------------------------------------------------- MARKET COUNTER NOTIONAL TERMINATION VALUE PARTY AMOUNT FUND RECEIVES FUND PAYS DATE $ - ----------------------- -------------- ------------------- -------------------- ---------------- ---------------- Barclays USD 8,300 5.000% Three Month LIBOR 06/20/09 (37) Consumer Price Index BNP Paribas EUR 1,300 2.090% (France) 10/15/10 21 Deutsche Bank JPY 80,000 1.500% Six Month LIBOR 06/20/12 2 Deutsche Bank JPY 315,000 2.000% Six Month LIBOR 12/20/16 42 Deutsche Bank JPY 100,000 2.500% Six Month LIBOR 12/20/26 22 Deutsche Bank JPY 420,000 1.000% Six Month LIBOR 09/18/08 3 Deutsche Bank USD 2,100 5.000% Three Month LIBOR 06/20/37 (143) Deutsche Bank USD 14,000 5.000% Three Month LIBOR 06/20/09 (64) Goldman Sachs JPY 75,000 2.000% Six Month LIBOR 12/20/16 10 Goldman Sachs JPY 190,000 1.500% Six Month LIBOR 06/20/12 6 JP Morgan GBP 400 Six Month LIBOR 4.000% 12/15/36 84 JP Morgan USD 10,200 5.000% Three Month LIBOR 06/20/37 (694) Lehman Brothers USD 1,100 5.000% Three Month LIBOR 06/20/37 (75) Lehman Brothers GBP 4,200 4.500% Six Month LIBOR 09/20/09 (190) Merrill Lynch GBP 200 4.000% Six Month LIBOR 12/15/35 5 Merrill Lynch GBP 10,500 4.500% Six Month LIBOR 09/20/09 (475) Morgan Stanley EUR 1,900 6.000% Six Month LIBOR 06/18/34 333 Morgan Stanley JPY 20,000 2.000% Six Month LIBOR 12/20/16 3 Royal Bank of Canada CAD 100 4.500% Three Month LIBOR 06/15/27 (3) Royal Bank of Scottland USD 9,000 5.000% Three Month LIBOR 06/20/09 (45) UBS JPY 30,000 2.000% Six Month LIBOR 12/20/16 8 ---------------- Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $106 (1,187) ================
CREDIT DEFAULT SWAP CONTRACTS - -------------------------------------------------------------------------------------------------------------------- NOTIONAL MARKET REFERENCE COUNTER AMOUNT FUND RECEIVES TERMINATION VALUE ENTITY PARTY $ FIXED RATE DATE $ - ------------------------------ ---------------- --------- ---------------- -------------- ---------------- American International Group JP Morgan 3,200 0.050% 12/20/07 2 Andarko Petroleum Corp. Goldman 300 0.150% 03/20/08 -- Dow Jones CDX High Volatility 4 Index Bank of America 3,000 0.650% 12/20/16 18 Dow Jones CDX High Volatility 4 Index Goldman 6,000 0.650% 12/20/16 36 Russia Government International Bond Morgan Stanley 200 0.460% 06/20/07 -- Russia Government International Bond Deutsche Bank 3,000 0.260% 12/20/07 -- Russia Government International Bond Merrill Lynch 2,000 0.305% 12/20/08 -- ---------------- Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($41) 56 ================
See accompanying notes which are an integral part of the schedules of investments. Diversified Bond Fund 97 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- LONG-TERM INVESTMENTS - 86.2% Asset-Backed Securities - 6.5% Accredited Mortgage Loan Trust (E) Series 2004-2 Class A2 5.620% due 07/25/34 318 319 ACE Securities Corp. (E) Series 2004-IN1 Class A1 5.640% due 05/25/34 618 619 Series 2005-SD3 Class A 5.720% due 08/25/45 2,000 2,002 Series 2006-HE2 Class A2A 5.380% due 05/25/36 1,682 1,682 Aegis Asset Backed Securities Trust (E) Series 2003-3 Class M2 6.970% due 01/25/34 805 811 Series 2005-4 Class 1A1 5.430% due 10/25/35 297 297 Alliance Capital Funding LLC (p) Series 1998-1 Class A3 5.840% due 02/15/10 8 7 American Airlines, Inc. 6.817% due 11/23/12 530 533 7.377% due 05/23/19 513 508 6.977% due 05/23/21 208 205 American Express Credit Account Master Trust (E) Series 2002-1 Class A 5.430% due 09/15/09 1,600 1,600 Series 2002-2 Class A 5.430% due 11/16/09 2,175 2,176 Series 2002-3 Class A 5.430% due 12/15/09 5,500 5,502 Ameriquest Mortgage Securities, Inc. (E) Series 2002-D Class M1 7.557% due 02/25/33 450 451 Series 2004-R8 Class A5 5.690% due 09/25/34 1,033 1,034 Series 2004-R10 Class A5 5.710% due 11/25/34 211 211 Series 2006-R1 Class A2C 5.510% due 08/01/16 820 821 BA Credit Card Trust (E) Series 2002-A10 Class A10 5.460% due 02/16/10 2,175 2,177 BA Master Credit Card Trust Series 2000-E Class A 7.800% due 10/15/12 600 647 Bank One Issuance Trust (E) Series 2003-A3 Class A3 5.430% due 12/15/10 3,800 3,806
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Bayview Financial Acquisition Trust Series 2006-A Class 1A3 5.865% due 02/28/41 1,090 1,085 Bear Stearns Asset Backed Securities, Inc. (E) Series 2004-BO1 Class 1A1 5.520% due 09/25/34 393 393 Series 2005-AQ1 Class 2A1 5.540% due 03/25/35 865 865 Series 2005-HE8 Class A1 5.440% due 08/25/35 348 348 Capital Auto Receivables Asset Trust Series 2004-2 Class A2 3.350% due 02/15/08 375 374 Series 2006-2 Class A3B (E) 5.38% due 05/15/11 3,100 3,104 Carrington Mortgage Loan Trust (E) Series 2005-NC4 Class A1 5.500% due 09/25/35 366 366 Cendant Timeshare Receivables Funding LLC (p) Series 2004-1A Class A1 3.670% due 05/20/16 142 138 Centex Home Equity Series 2002-D Class AF4 4.710% due 11/25/28 152 151 Series 2005-D Class AF1 5.04% due 10/25/35 85 84 Citibank Credit Card Issuance Trust Series 2000-A3 Class A3 6.875% due 11/16/09 900 910 Citifinancial Mortgage Securities, Inc. Series 2003-4 Class AF3 3.221% due 10/25/33 13 13 Citigroup Mortgage Loan Trust, Inc. (E) Series 2006-NC1 Class A2A 5.390% due 08/25/36 1,478 1,478 Countrywide Asset-Backed Certificates Series 2004-13 Class AF3 3.989% due 02/25/31 360 357 Series 2004-BC1 Class M1 (E) 5.820% due 02/25/34 545 546 Series 2005-16 Class 2AF1 (E) 5.500% due 05/25/36 1,446 1,446 Series 2005-AB3 Class 2A1 (E) 5.470% due 02/25/36 624 624
98 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2006-11 Class 1AF3 6.050% due 09/25/46 870 876 Series 2006-11 Class 1AF4 6.300% due 09/25/46 1,250 1,270 Series 2006-13 Class 1AF3 5.944% due 05/25/33 905 909 Series 2006-15 Class A3 5.689% due 10/25/46 690 690 Series 2006-3 Class 2A2 (E) 5.500% due 02/25/36 1,790 1,793 Series 2006-S3 Class A2 6.085% due 06/25/21 1,380 1,390 Series 2006-S6 Class A2 5.519% due 03/25/34 1,365 1,358 Series 2006-S7 Class A3 5.712% due 04/25/35 2,860 2,855 Series 2006-S9 Class A3 5.728% due 08/25/36 1,330 1,330 Countrywide Home Equity Loan Trust (E) Series 2006-H Class 2A1B 5.470% due 11/15/36 5,431 5,432 Credit-Based Asset Servicing and Securitization LLC Series 2005-CB1 Class AF2 4.090% due 01/25/35 291 289 Series 2005-CB4 Class AV1 (E) 5.420% due 08/25/35 407 407 Series 2005-CB5 Class AV1 (E) 5.430% due 08/25/35 269 269 Series 2005-CB7 Class AF1 5.208% due 11/25/35 102 102 Series 2006-CB5 Class A1 (E) 5.380% due 06/25/36 1,650 1,650 Series 2006-SL1 Class A2 (p) 5.556% due 09/25/36 1,240 1,237 Series 2007-CB1 Class AF2 5.721% due 01/25/37 1,030 1,030 Dunkin Securitization (p) Series 2006-1 Class A2 5.779% due 06/20/31 1,525 1,543 Entergy Gulf States, Inc. (E) 5.769% due 12/01/09 335 334 Fannie Mae Series 1992-10 Class ZD 8.000% due 11/25/21 429 431 Series 1996-46 Class ZA 7.500% due 11/25/26 259 267 Series 1999-56 Class Z 7.000% due 12/18/29 900 929 Fannie Mae Grantor Trust Series 2003-T4 Class 2A5 4.907% due 09/26/33 1,502 1,498
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Fannie Mae REMICS Series 1993-41 Class ZQ 7.000% due 12/25/23 2,323 2,416 Series 1993-42 Class ZQ 6.750% due 04/25/23 1,580 1,603 Series 2006-90 Class Z 6.000% due 09/25/36 1,265 1,266 First Franklin Mortgage Loan Asset Backed Certificates (E) Series 2005-FF7 Class A2 5.420% due 07/25/35 495 495 Series 2006-FF1 Class A2 5.370% due 07/25/36 1,721 1,721 Series 2006-FF2 Class A2 5.390% due 02/25/36 1,361 1,361 Series 2007-FF1 Class A2A 5.360% due 01/25/38 3,000 3,002 Freddie Mac Series 1991-103 Class Z 9.000% due 02/15/21 58 58 Series 1994-173 Class Z 7.000% due 05/15/24 344 359 Series 2001-232 Class ZQ 6.500% due 06/15/31 1,599 1,655 Fremont Home Loan Trust (E) Series 2005-E Class 2A1 5.410% due 01/25/36 123 123 Series 2006-3 Class 2A1 5.420% due 02/25/37 1,105 1,105 Series 2006-A Class 2A1 5.370% due 05/25/36 1,041 1,041 GE Capital Credit Card Master Note Trust (E) Series 2004-1 Class A 5.370% due 06/15/10 1,500 1,500 Series 2004-2 Class A 5.360% due 09/15/10 1,950 1,951 GE Dealer Floorplan Master Note Trust (E) Series 2004-2 Class A 5.400% due 07/20/09 1,900 1,901 GMAC Mortgage Corp. Loan Trust Series 2004-HE5 Class A3 3.970% due 09/25/34 1,051 1,040 GSAA Home Equity Trust Series 2006-4 Class 1A2 5.967% due 03/25/36 1,576 1,586
Multistrategy Bond Fund 99 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- GSAA Trust (E) Series 2006-2 Class 2A3 5.590% due 12/25/35 1,890 1,894 GSAMP Trust Series 2003-HE2 Class M1 (E) 5.970% due 08/25/33 975 978 Series 2005-HE4 Class A2A (E) 5.440% due 08/25/35 132 132 Series 2006-HE4 Class A2A (E) 5.390% due 06/25/36 1,692 1,692 Series 2006-S3 Class A1 6.085% due 05/25/36 400 399 Series 2007-FM1 Class A2A (E) 5.390% due 12/25/36 4,400 4,400 Heritage Property Investment Trust 5.125% due 04/15/14 1,000 967 Home Equity Asset Trust (E) Series 2003-5 Class M1 6.020% due 12/25/33 1,425 1,428 Series 2005-2 Class 2A2 5.520% due 07/25/35 660 661 HSI Asset Securitization Corp. Trust (E) Series 2006-HE2 Class 2A1 5.370% due 12/25/36 789 789 Indymac Residential Asset Backed Trust (E) Series 2006-H2 Class A 5.470% due 06/28/36 2,532 2,532 Irwin Home Equity Corp. (E) Series 2005-1 Class 2A1 5.460% due 06/25/35 146 146 Lehman XS Trust (E) Series 2005-1 Class 2A2 4.660% due 07/25/35 802 806 Series 2006-11 Class 1A1 5.400% due 06/25/46 4,161 4,163 Series 2006-16N Class A1A 5.400% due 11/25/46 2,090 2,090 Long Beach Mortgage Loan Trust (E) Series 2004-4 Class 1A1 5.650% due 10/25/34 297 297 Series 2006-9 Class 2A1 5.410% due 10/25/36 5,910 5,910 Mastr Asset Backed Securities Trust (E) Series 2003-WMC Class M2 6.970% due 08/25/33 306 307 MBNA Master Credit Card Trust (E) Series 2000-D Class A 5.520% due 09/15/09 2,925 2,926 Merrill Auto Trust Securitization (E) Series 2005-1 Class A2B 5.330% due 04/25/08 49 49
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Merrill Lynch Mortgage Investors, Inc. Series 2005-NCB Class A1A 5.451% due 07/25/36 130 130 Series 2006-AR1 Class A2C (E) 5.480% due 03/25/37 1,580 1,581 Mid-State Trust Series 2003-11 Class A1 4.864% due 07/15/38 147 141 Series 2004-1 Class A 6.005% due 08/15/37 196 198 Series 2005-1 Class A 5.745% due 01/15/40 190 182 Series 2006-1 Class A (p) 5.787% due 10/15/40 802 762 Morgan Stanley ABS Capital I (E) Series 2003-NC8 Class M3 7.420% due 09/25/33 283 286 Series 2006-HE7 Class A2A 5.370% due 09/25/36 5,790 5,791 Morgan Stanley Mortgage Loan Trust Series 2006-12X Class A6A 5.726% due 10/25/36 1,035 1,024 Nationstar Home Equity Loan Trust (E) Series 2006-B Class AV1 5.380% due 09/25/36 2,005 2,005 New Century Home Equity Loan Trust (E) Series 2004-4 Class M2 5.850% due 02/25/35 1,205 1,210 Northwest Airlines, Inc. (o) 7.041% due 04/01/22 464 467 NWA Trust (o) Series 1995-2 Class A 9.250% due 06/21/14 943 981 Option One Mortgage Loan Trust (E) Series 2003-2 Class M2 7.020% due 04/25/33 325 326 Series 2003-3 Class M3 7.350% due 06/25/33 228 229 Series 2003-4 Class M2 6.970% due 07/25/33 360 362 Series 2005-4 Class A3 5.580% due 11/25/35 1,605 1,609 Series 2007-1 Class 2A1 5.370% due 01/25/37 1,600 1,600
100 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Park Place Securities, Inc. (E) Series 2005-WCW Class M1 5.800% due 09/25/35 1,195 1,202 Popular ABS Mortgage Pass-Through Trust Series 2005-1 Class AF2 3.914% due 05/25/35 74 74 Series 2005-6 Class A3 5.680% due 01/25/36 1,290 1,283 Power Contract Financing LLC (p) 6.256% due 02/01/10 520 522 RAAC Series (E) Series 2006-SP1 Class A1 5.450% due 09/25/45 869 869 Renaissance Home Equity Loan Trust Series 2005-1 Class M1 5.357% due 05/25/35 565 554 Series 2005-2 Class AF4 4.934% due 08/25/35 610 604 Series 2005-4 Class A2 5.399% due 02/25/36 575 572 Series 2005-4 Class A3 5.565% due 02/25/36 360 359 Series 2006-1 Class AF6 5.746% due 05/25/36 1,020 1,026 Residential Asset Mortgage Products, Inc. Series 2003-RS1 Class AI6A 5.980% due 12/25/33 1,160 1,166 Series 2006-RZ3 Class A1 (E) 5.390% due 08/25/36 2,211 2,211 Residential Asset Securities Corp. Series 2001-KS3 Class AII (E) 5.580% due 09/25/31 185 185 Series 2003-KS1 Class M2 (E) 7.100% due 01/25/33 195 196 Series 2003-KS2 Class MI1 4.800% due 04/25/33 2,540 2,479 Series 2003-KS2 Class MI3 6.100% due 04/25/33 1,285 1,273 Series 2003-KS5 Class AI4 3.230% due 12/25/30 122 120 Saxon Asset Securities Trust (E) Series 2006-3 Class A1 5.380% due 11/25/36 819 819 Securitized Asset Backed Receivables LLC Trust (E) Series 2006-WM1 Class A2A 5.420% due 12/25/35 724 724 Series 2006-WM4 Class A2A 5.430% due 11/25/36 2,307 2,307 Series 2007-HE1 Class A2A 5.380% due 12/25/36 2,100 2,098
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Sharps SP I, LLC 7.000% due 01/25/34 42 30 SLM Student Loan Trust (E) Series 2006-9 Class A1 5.338% due 10/25/12 4,400 4,399 Small Business Administration Series 2000-P10 Class 1 7.449% due 08/01/10 57 60 Small Business Administration Participation Certificates Series 1997- 7.500% due 04/01/17 1,365 1,422 Soundview Home Equity Loan Trust Series 2006-EQ2 Class A1 (E) 1.704% due 01/25/37 1,975 1,975 Series 2006-WF1 Class A2 5.645% due 10/25/36 2,125 2,118 Structured Asset Investment Loan Trust (E) Series 2005-3 Class M2 5.790% due 04/25/35 675 677 Series 2005-HE1 Class A1 5.450% due 07/25/35 111 111 Structured Asset Mortgage Investments, Inc. (E) Series 2006-AR7 Class A2A 5.580% due 08/25/36 2,159 2,164 Structured Asset Securities Corp. Series 2001-SB1 Class A2 3.375% due 08/25/31 472 423 Series 2004-16X Class A2 4.910% due 08/25/34 416 414 Series 2004-19X Class A2 4.370% due 10/25/34 1,727 1,711 Series 2005-GEL Class A (E) 5.700% due 12/25/34 683 683 Series 2005-S2 Class A2 (E) 5.550% due 06/25/35 1,210 1,210 Series 2006-BC3 Class A2 (E) 5.370% due 10/25/36 1,856 1,857 Terwin Mortgage Trust (E) Series 2005-8HE Class A1 (p) 5.470% due 07/25/35 45 45 Series 2005-12A Class AF1 5.530% due 07/25/36 348 348 TXU Electric Delivery Transition Bond Co. Series 2004-1 Class A2 4.810% due 11/17/14 300 295
Multistrategy Bond Fund 101 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Washington Mutual Alternative Mortgage Pass-Through Certificates (E) Series 2006-AR6 Class 1A 5.540% due 07/25/46 1,244 1,245 Wells Fargo Home Equity Trust (E) Series 2005-4 Class AI1 5.470% due 12/25/35 1,622 1,623 World Financial Properties (p) 6.910% due 09/01/13 592 618 6.950% due 09/01/13 175 182 ------------ 185,465 ------------ Certificate of Deposits - 0.5% Bank of Ireland 5.400% due 01/15/10 6,900 6,898 Nordea Bank Finland PLC 5.308% due 05/28/08 1,000 999 Royal Bank of Canada 5.420% due 06/30/08 2,800 2,799 Societe Generale 5.271% due 06/30/08 5,500 5,510 ------------ 16,206 ------------ Corporate Bonds and Notes - 16.2% Abbey National Treasury Services PLC/Stamford CT (E) Series YCD 5.270% due 07/02/08 3,400 3,400 Abbott Laboratories 5.600% due 05/15/11 1,310 1,324 5.875% due 05/15/16 575 590 Ace Capital Trust II 9.700% due 04/01/30 1,050 1,419 AIG SunAmerica Global Financing VI (p) 6.300% due 05/10/11 1,490 1,544 Alamosa Delaware, Inc. 8.500% due 01/31/12 600 636 Alion Science and Technology Corp. (A) 10.250% due 02/01/15 975 982 Allied Waste North America, Inc. Series B 7.125% due 05/15/16 500 499 Altria Group, Inc. 7.750% due 01/15/27 200 241 American Casino & Entertainment Properties LLC 7.850% due 02/01/12 890 909 American Electric Power Co., Inc. Series C 5.375% due 03/15/10 100 100
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- American Express Bank (E) Series BKNT 5.330% due 10/16/08 1,800 1,800 American Express Co. 6.800% due 09/01/66 630 672 American Express Credit Corp. (E) 5.386% due 03/02/09 1,800 1,801 American General Finance Corp. 4.875% due 05/15/10 1,300 1,281 Series MTNH 4.625% due 09/01/10 45 44 Series MTNI 4.625% due 05/15/09 220 216 American International Group, Inc. 4.700% due 10/01/10 1,220 1,195 5.375% due 10/18/11 1,240 1,242 5.050% due 10/01/15 1,335 1,294 American RE Corp. Series B 7.450% due 12/15/26 1,445 1,654 American Real Estate Partners, LP/ American Real Estate Finance Corp. 7.125% due 02/15/13 650 644 Americo Life, Inc. (p) 7.875% due 05/01/13 250 261 Ameriprise Financial, Inc. 7.518% due 06/01/66 1,170 1,277 AmerisourceBergen Corp. Series WI 5.625% due 09/15/12 1,360 1,334 AmerUs Group Co. 5.950% due 08/15/15 850 901 Anadarko Petroleum Corp. 5.950% due 09/15/16 2,780 2,756 ANZ Capital Trust (f)(p) 4.484% due 12/31/49 1,400 1,357 Aramark Corp. (A) 8.500% due 02/01/15 370 379 8.860% due 02/01/15 (E) 350 357 Arizona Public Service Co. 5.800% due 06/30/14 1,050 1,045 6.250% due 08/01/16 850 867 ArvinMeritor, Inc. 8.750% due 03/01/12 560 571
102 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- AT&T Corp. 7.300% due 11/15/11 925 1,000 8.000% due 11/15/31 1,455 1,805 AT&T, Inc. 5.464% due 05/15/08 (E) 3,300 3,302 5.584% due 11/14/08 (E) 3,400 3,410 5.100% due 09/15/14 325 314 Avista Capital Trust III 6.500% due 04/01/34 851 844 Avista Corp. 9.750% due 06/01/08 610 638 AXA Financial, Inc. 6.500% due 04/01/08 325 328 Aztar Corp. 7.875% due 06/15/14 1,225 1,339 BAC Capital Trust XI 6.625% due 05/23/36 375 400 BAE Systems Holdings, Inc. (p) 6.400% due 12/15/11 2,915 3,019 Ball Corp. 6.625% due 03/15/18 255 252 Bank of America Corp. 5.375% due 06/19/09 (E) 5,600 5,603 5.420% due 03/15/17 (p) 460 452 Bank of America NA Series BKNT 6.000% due 10/15/36 500 506 Bank of New York Co., Inc. (The) 5.125% due 11/01/11 1,445 1,431 BellSouth Corp. 4.200% due 09/15/09 485 471 6.550% due 06/15/34 260 265 BNP Paribas 5.293% due 05/28/08 1,000 1,099 BNP Paribas Capital Trust (f)(p) 9.003% due 12/29/49 2,600 2,890 Boardwalk Pipelines, LP 5.875% due 11/15/16 1,225 1,212 Boeing Capital Corp., Ltd. 6.100% due 03/01/11 365 376 Boston Scientific Corp. 6.400% due 06/15/16 2,820 2,865 Bowater, Inc. 9.000% due 08/01/09 1,010 1,066 Burlington Northern Santa Fe Corp. 6.750% due 07/15/11 110 115 6.875% due 12/01/27 55 59 6.750% due 03/15/29 110 119 California Steel Industries, Inc. 6.125% due 03/15/14 1,030 976 Calyon NY (E) Series YCD 5.34% due 01/16/09 2,100 2,100
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Carolina Power & Light Co. 6.500% due 07/15/12 50 52 Caterpillar Financial Services Corp. (E) 5.435% due 05/18/09 1,600 1,602 Caterpillar, Inc. 6.050% due 08/15/36 715 729 Catlin Insurance Co., Ltd. (f)(A) 7.249% due 12/31/49 1,515 1,530 CenterPoint Energy Houston Electric LLC Series J2 5.700% due 03/15/13 470 472 CenterPoint Energy Resources Corp. Series B 7.875% due 04/01/13 1,365 1,508 Cingular Wireless Services, Inc. 7.875% due 03/01/11 825 897 8.750% due 03/01/31 610 789 CIT Group, Inc. 5.515% due 12/19/08 (E) 900 902 5.493% due 08/17/09 (E) 4,900 4,905 6.875% due 11/01/09 140 145 4.125% due 11/03/09 225 218 Citicorp Series MTNF 6.375% due 11/15/08 265 269 Citigroup Funding, Inc. Zero coupon due 11/15/07 3,010 3,056 Zero coupon due 07/17/08 385 432 5.343% due 12/08/08 (E) 400 399 Citigroup Global Markets Holdings, Inc. Series MTNA (E) 5.461% due 03/17/09 300 300 Series MTNM (E) 5.390% due 03/07/08 1,800 1,801 Citigroup, Inc. 3.500% due 02/01/08 3,110 3,055 5.406% due 12/26/08 (E) 1,900 1,901 5.393% due 12/28/09 (E) 1,600 1,600 6.500% due 01/18/11 1,920 2,000 4.700% due 05/29/15 180 171 6.125% due 08/25/36 1,755 1,802 Citizens Communications Co. 9.250% due 05/15/11 670 742 Citizens Property Insurance Corp. (A) 7.125% due 02/25/19 1,560 1,830
Multistrategy Bond Fund 103 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Clorox Co. 4.200% due 01/15/10 525 508 CNA Financial Corp. 6.500% due 08/15/16 850 880 Columbus Southern Power Co. Series C 5.500% due 03/01/13 260 259 Comcast Cable Communications Holdings, Inc. 9.455% due 11/15/22 750 975 Comcast Cable Communications LLC 6.750% due 01/30/11 425 444 Comcast Cable Holdings LLC 9.800% due 02/01/12 990 1,164 7.875% due 08/01/13 2,240 2,486 Comcast Corp. 5.660% due 07/14/09 (E) 685 687 5.900% due 03/15/16 435 437 6.500% due 11/15/35 610 618 6.450% due 03/15/37 620 622 Comcast LCI Holdings 7.625% due 02/15/08 100 102 Commonwealth Edison Co. 6.950% due 07/15/18 300 314 Series 105 5.400% due 12/15/11 625 619 Series 98 6.150% due 03/15/12 700 715 ConAgra Foods, Inc. 7.000% due 10/01/28 215 230 8.250% due 09/15/30 275 333 Consolidated Natural Gas Co. 6.850% due 04/15/11 1,095 1,148 Series C 6.250% due 11/01/11 155 159 Constellation Brands, Inc. Series B 8.125% due 01/15/12 570 593 Consumers Energy Co. Series F 4.000% due 05/15/10 175 167 Series H 4.800% due 02/17/09 325 321 Continental Airlines, Inc. Series 01-1 6.503% due 06/15/11 550 566 Cooper Industries, Inc. Series WI 5.250% due 11/15/12 500 492 Corrections Corp. of America 7.500% due 05/01/11 500 513 Countrywide Home Loans, Inc. 3.250% due 05/21/08 680 662
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- COX Communications, Inc. 4.625% due 01/15/10 2,575 2,517 5.875% due 12/01/16 (p) 725 724 Credit Suisse First Boston Mortgage Securities Corp. (E)(p) Series 2005-CN2 Class A1S 5.540% due 11/15/19 1,021 1,021 Credit Suisse First Boston USA, Inc. 4.875% due 08/15/10 335 330 6.500% due 01/15/12 215 226 5.500% due 08/15/13 230 231 Credit Suisse USA, Inc. 5.250% due 03/02/11 625 624 CVS Corp. 5.750% due 08/15/11 625 631 CVS Lease Pass Through (A) 6.036% due 12/10/28 973 957 DaimlerChrysler NA Holding Corp. 5.790% due 03/13/09 (E) 1,100 1,102 8.500% due 01/18/31 320 379 DaimlerChrysler North America Holding Corp. (E) 5.820% due 08/03/09 1,840 1,844 DCP Midstream, LP 6.875% due 02/01/11 60 62 Delhaize America, Inc. 9.000% due 04/15/31 435 518 Detroit Edison Co. (The) 6.125% due 10/01/10 595 606 6.350% due 10/15/32 275 286 Developers Diversified Realty Corp. 5.000% due 05/03/10 400 393 4.625% due 08/01/10 776 754 5.250% due 04/15/11 50 49 5.375% due 10/15/12 390 384 Dex Media East Finance Co. 12.125% due 11/15/12 220 242 Dominion Resources, Inc. Series 06-B 6.300% due 09/30/66 1,055 1,063 Series A 5.687% due 05/15/08 795 796 5.200% due 01/15/16 1,485 1,428 Series B 6.250% due 06/30/12 365 378 Dow Chemical Co. (The) 6.000% due 10/01/12 480 491 DPL, Inc. 6.875% due 09/01/11 1,070 1,121
104 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Dresdner Funding Trust I (p) 8.151% due 06/30/31 1,065 1,278 E*Trade Financial Corp. 8.000% due 06/15/11 1,440 1,503 Echostar DBS Corp. 6.375% due 10/01/11 595 590 6.625% due 10/01/14 280 274 El Paso Corp. 7.875% due 06/15/12 910 962 Series * 6.700% due 02/15/27 705 705 El Paso Natural Gas Co. Series A 7.625% due 08/01/10 785 816 Eli Lilly & Co. 6.770% due 01/01/36 1,360 1,542 Embarq Corp. 7.995% due 06/01/36 200 208 Energy Transfer Partners, LP 5.950% due 02/01/15 1,125 1,129 Entergy Gulf States, Inc. 3.600% due 06/01/08 235 229 6.100% due 12/08/08 (E)(p) 570 571 Enterprise Products Operating, LP 4.950% due 06/01/10 825 811 8.375% due 08/01/66 2,605 2,846 Series B 4.625% due 10/15/09 920 899 Erac USA Finance Co. (p) 7.350% due 06/15/08 780 796 5.300% due 11/15/08 350 347 Farmers Exchange Capital (p) 7.050% due 07/15/28 2,290 2,368 Farmers Insurance Exchange (p) 6.000% due 08/01/14 570 560 8.625% due 05/01/24 660 783 FedEx Corp. 5.500% due 08/15/09 170 170 7.600% due 07/01/97 440 508 Financial Security Assurance Holdings, Ltd. (p) 6.400% due 12/15/66 525 526 Financing Corp. Principal Only STRIP Series 10P Zero coupon due 11/30/17 2,700 1,544 Series 15P Zero coupon due 03/07/19 390 207 Series 2P Zero coupon due 11/30/17 330 189 Series 6P Zero coupon due 08/03/18 1,640 903 First Union Institutional Capital II 7.850% due 01/01/27 1,680 1,748
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- FirstEnergy Corp. Series B 6.450% due 11/15/11 3,600 3,747 Series C 7.375% due 11/15/31 885 1,008 Ford Motor Co. 7.450% due 07/16/31 1,240 1,006 4.250% due 12/15/36 485 551 7.700% due 05/15/97 585 443 Ford Motor Credit Co. 9.875% due 08/10/11 4,070 4,358 7.250% due 10/25/11 600 586 8.110% due 01/13/12 (E) 975 979 8.000% due 12/15/16 725 712 Series 2006- (p) 9.750% due 09/15/10 1,110 1,184 FPL Group Capital, Inc. 5.625% due 09/01/11 860 867 Freescale Semiconductor, Inc. (p) 10.125% due 12/15/16 765 762 FTI Consulting, Inc. (p) 7.750% due 10/01/16 235 243 General Electric Capital Corp. 5.430% due 01/20/10 (E) 5,200 5,207 5.500% due 04/28/11 1,295 1,305 5.560% due 01/08/16 (E) 1,100 1,101 Series MTN (E) 5.390% due 10/26/09 200 200 Series MTNA 5.476% due 07/28/08 (E) 2,000 2,004 4.250% due 12/01/10 180 173 5.875% due 02/15/12 320 328 5.450% due 01/15/13 2,200 2,208 4.750% due 09/15/14 80 77 General Mills, Inc. (E) 5.490% due 01/22/10 1,100 1,100 General Motors Corp. 8.375% due 07/15/33 1,640 1,544 Genworth Financial, Inc. 6.150% due 11/15/66 375 374 Georgia-Pacific Corp. 8.125% due 05/15/11 1,000 1,050 9.500% due 12/01/11 690 759 8.875% due 05/15/31 927 980 Glencore Nickel, Ltd. (o) 9.000% due 12/01/14 305 --
Multistrategy Bond Fund 105 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- GMAC LLC 6.875% due 09/15/11 6,201 6,293 6.000% due 12/15/11 200 197 8.000% due 11/01/31 900 1,013 Goldman Sachs Group, Inc. 5.403% due 12/23/08 (E) 800 800 5.456% due 06/23/09 (E) 2,300 2,302 6.875% due 01/15/11 2,970 3,133 5.350% due 01/15/16 2,960 2,894 5.625% due 01/15/17 775 765 6.345% due 02/15/34 850 848 Series MTNB (E) 5.455% due 12/22/08 1,800 1,802 5.690% due 07/23/09 1,500 1,510 Great West Life & Annuity Insurance Co. (p) 7.153% due 05/16/46 660 698 Greater Bay Bancorp Series B 5.250% due 03/31/08 900 896 GSAMP Trust (E) Series 2006-HE8 Class A2A 5.390% due 01/25/37 1,907 1,907 Harrah's Operating Co., Inc. 5.500% due 07/01/10 525 516 5.625% due 06/01/15 705 612 6.500% due 06/01/16 870 792 HCA, Inc. 9.125% due 11/15/14 (p) 655 697 6.500% due 02/15/16 705 594 Health Care Property Investors, Inc. 5.950% due 09/15/11 1,750 1,757 Healthsouth Corp. (p) 10.750% due 06/15/16 1,110 1,220 Hertz Corp. 8.875% due 01/01/14 835 887 Hess Corp. 6.650% due 08/15/11 455 474 7.300% due 08/15/31 585 648 Hewlett-Packard Co. (E) 5.496% due 05/22/09 580 581 Historic TW, Inc. 8.050% due 01/15/16 1,260 1,434 HJ Heinz Co. (p) 6.428% due 12/01/08 200 203 HJ Heinz Finance Co. 6.000% due 03/15/12 210 212 Home Depot, Inc. 5.490% due 12/16/09 (E) 360 360 5.250% due 12/16/13 200 198 5.875% due 12/16/36 1,620 1,579 Host Marriott, LP Series Q 6.750% due 06/01/16 435 432
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- HRPT Properties Trust 5.750% due 02/15/14 860 857 HSBC Finance Corp. 5.490% due 09/15/08 (E) 3,600 3,609 4.125% due 12/15/08 175 171 5.875% due 02/01/09 660 668 5.420% due 10/21/09 (E) 900 900 4.125% due 11/16/09 270 262 8.000% due 07/15/10 165 178 6.375% due 10/15/11 465 484 6.375% due 11/27/12 1,195 1,251 5.000% due 06/30/15 1,005 971 ICI Wilmington, Inc. 4.375% due 12/01/08 210 206 Idearc, Inc. (p) 8.000% due 11/15/16 1,670 1,697 Innophos Investments Holdings, Inc. (E) 13.380% due 02/15/15 654 684 International Business Machines Corp. 7.125% due 12/01/96 1,290 1,458 International Lease Finance Corp. 5.750% due 06/15/11 750 761 5.625% due 09/20/13 555 556 International Steel Group, Inc. 6.500% due 04/15/14 475 482 Interpublic Group of Cos., Inc. 5.400% due 11/15/09 450 442 6.250% due 11/15/14 380 356 iStar Financial, Inc. Series B 5.125% due 04/01/11 1,100 1,078 ITT Corp. 7.400% due 11/15/25 455 523 JC Penney Co., Inc. 7.375% due 08/15/08 530 541 JC Penney Corp., Inc. 8.125% due 04/01/27 710 729 7.625% due 03/01/97 220 226 John Hancock Financial Services, Inc. 5.625% due 12/01/08 120 120 John Hancock Global Funding II (p) 7.900% due 07/02/10 440 473 JP Morgan Chase Bank Series EMTn 6.000% due 05/22/45 BRL 10,586 6,799
106 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- JP Morgan Chase Capital XVIII Series R 6.950% due 08/17/36 970 1,040 JP Morgan Chase Capital XX Series T 6.550% due 09/15/66 310 317 JPMorgan Chase & Co. 6.000% due 02/15/09 170 172 7.000% due 11/15/09 415 433 6.750% due 02/01/11 175 183 5.600% due 06/01/11 470 474 JPMorgan Chase Bank NA Series BKNT 5.875% due 06/13/16 1,360 1,388 KBC Bank Funding Trust III (f)(A) 9.860% due 11/29/49 505 559 Kellogg Co. Series B 6.600% due 04/01/11 2,760 2,878 Kerr-McGee Corp. 6.950% due 07/01/24 725 763 KeySpan Corp. 7.625% due 11/15/10 525 562 Kinder Morgan Finance Co. ULC Series WI 5.350% due 01/05/11 425 416 5.700% due 01/05/16 625 583 Kraft Foods, Inc. 4.125% due 11/12/09 492 476 5.625% due 11/01/11 3,235 3,258 6.500% due 11/01/31 170 180 Kroger Co. (The) 7.250% due 06/01/09 270 279 8.000% due 09/15/29 165 186 LaBranche & Co., Inc. 9.500% due 05/15/09 1,000 1,050 Lehman Brothers Holdings, Inc. 5.450% due 10/22/08 (E) 1,800 1,802 5.450% due 04/03/09 (E) 4,800 4,805 5.250% due 02/06/12 670 666 5.500% due 04/04/16 625 620 Level 3 Communications, Inc. 11.500% due 03/01/10 750 808 Level 3 Financing, Inc. 12.250% due 03/15/13 595 680 Lodgenet Entertainment Corp. 9.500% due 06/15/13 720 772 Lubrizol Corp. 4.625% due 10/01/09 661 646 M&I Marshall & Ilsley Bank Series BKNT 3.800% due 02/08/08 755 743 Mandalay Resort Group 6.500% due 07/31/09 500 504
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Manufacturers & Traders Trust Co. 5.585% due 12/28/20 248 244 Marsh & McLennan Cos., Inc. 5.150% due 09/15/10 865 853 May Department Stores Co. (The) 6.700% due 07/15/34 570 559 MBNA Corp. (E) Series MTNF 5.798% due 05/05/08 780 785 Medco Health Solutions, Inc. 7.250% due 08/15/13 1,357 1,441 Merrill Lynch & Co., Inc. 5.461% due 06/16/08 (E) 6,800 6,812 6.050% due 05/16/16 915 940 6.220% due 09/15/26 555 564 6.110% due 01/29/37 680 672 Series MTNC 4.250% due 02/08/10 3,400 3,295 Metlife, Inc. 5.000% due 06/15/15 485 467 6.400% due 12/15/36 2,105 2,109 Midamerican Energy Holdings Co. Series WI 6.125% due 04/01/36 1,625 1,634 Midamerican Funding LLC 6.750% due 03/01/11 620 648 Miller Brewing Co. (p) 4.250% due 08/15/08 585 574 5.500% due 08/15/13 925 913 Mohawk Industries, Inc. Series D 7.200% due 04/15/12 340 352 Monumental Global Funding II (p) 4.625% due 03/15/10 320 313 Morgan Stanley 5.375% due 10/15/15 780 769 Series GMTN (E) 5.485% due 02/09/09 3,100 3,105 Series MTN (E) 5.450% due 01/15/10 2,300 2,300 Natexis Ambs Co. LLC (f)(p) 8.440% due 12/29/49 430 446 National Rural Utilities Cooperative Finance Corp. 5.750% due 08/28/09 200 202
Multistrategy Bond Fund 107 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Nationwide Financial Services 6.250% due 11/15/11 395 406 Nationwide Mutual Insurance Co. (p) 7.875% due 04/01/33 867 1,025 Neiman-Marcus Group, Inc. Series WI 10.375% due 10/15/15 795 888 Nelnet, Inc. 7.400% due 09/29/36 600 615 Nevada Power Co. Series L 5.875% due 01/15/15 550 547 News America Holdings, Inc. 7.750% due 12/01/45 385 437 7.900% due 12/01/95 410 461 8.250% due 10/17/96 135 158 Nextel Communications, Inc. Series E 6.875% due 10/31/13 1,005 1,019 Nisource Finance Corp. 5.940% due 11/23/09 (E) 370 370 7.875% due 11/15/10 1,090 1,174 Norfolk Southern Corp. 7.050% due 05/01/37 280 317 7.900% due 05/15/97 2,510 3,049 6.000% due 03/15/05 950 884 North Front Pass-Through Trust (p) 5.810% due 12/15/24 1,700 1,662 Occidental Petroleum Corp. 9.250% due 08/01/19 285 371 Ohio Power Co. Series F 5.500% due 02/15/13 55 55 Series K 6.000% due 06/01/16 560 573 ONEOK Partners, LP 6.650% due 10/01/36 575 592 Oneok, Inc. 5.510% due 02/16/08 815 814 Pacific Gas & Electric Co. 4.200% due 03/01/11 1,015 970 6.050% due 03/01/34 335 335 PartnerRe Finance II 6.440% due 12/01/66 150 149 Peabody Energy Corp. 7.875% due 11/01/26 500 525 Pemex Project Funding Master Trust 5.750% due 12/15/15 500 488 Series WI 6.625% due 06/15/35 1,045 1,040 Pepco Holdings, Inc. (E) 5.994% due 06/01/10 975 976 Phoenix Life Insurance Co. (p) 7.150% due 12/15/34 850 895
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Pilgrim's Pride Corp. 9.625% due 09/15/11 140 146 7.625% due 05/01/15 445 441 Plains All American Pipeline, LP/ PAA Finance Corp. Series WI 6.700% due 05/15/36 580 593 Platinum Underwriters Finance, Inc. Series B 7.500% due 06/01/17 520 544 Popular North America Capital Trust I 6.564% due 09/15/34 647 636 Popular North America, Inc. 5.760% due 04/06/09 (E) 875 878 Series MTNE 3.875% due 10/01/08 1,600 1,559 Progress Energy, Inc. 7.100% due 03/01/11 284 301 5.625% due 01/15/16 340 339 7.000% due 10/30/31 590 654 PSEG Energy Holdings LLC 8.625% due 02/15/08 94 96 Qwest Corp. 7.875% due 09/01/11 1,390 1,477 7.625% due 06/15/15 1,000 1,071 Rabobank Capital Funding II (f)(p) 5.260% due 12/31/49 995 969 RBS Capital Trust III (f) 5.512% due 09/29/49 1,530 1,502 RBS Global, Inc. and Rexnord Corp. 9.500% due 08/01/14 860 886 Reckson Operating Partnership, LP 7.750% due 03/15/09 175 182 5.150% due 01/15/11 457 445 Reinsurance Group of America, Inc. 6.750% due 12/15/65 325 324 Rental Services Corp. (p) 9.500% due 12/01/14 860 899 Residential Capital LLC 5.850% due 06/09/08 (E) 1,040 1,038 6.125% due 11/21/08 875 878 7.190% due 04/17/09 (E)(p) 1,365 1,370 6.375% due 06/30/10 3,082 3,108 6.000% due 02/22/11 1,300 1,293 5.125% due 05/17/12 670 872 6.500% due 04/17/13 1,385 1,398
108 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series WI 6.875% due 06/30/15 2,135 2,190 RH Donnelley, Inc. 10.875% due 12/15/12 1,690 1,838 Safeco Capital Trust I 8.072% due 07/15/37 900 941 Safeway, Inc. 5.800% due 08/15/12 60 60 7.250% due 02/01/31 105 112 Sara Lee Corp. 6.125% due 11/01/32 640 581 SB Treasury Co. LLC (f)(p) 9.400% due 12/29/49 2,028 2,126 SBC Communications, Inc. 6.150% due 09/15/34 945 928 Sempra Energy (E) 5.845% due 05/21/08 891 893 Simon Property Group, LP 5.600% due 09/01/11 1,000 1,005 SLM Corp. 4.000% due 01/15/10 540 520 Series MTNA (E) 5.570% due 07/25/08 6,200 6,217 Southern California Edison Co. 7.625% due 01/15/10 260 275 Sovereign Capital Trust VI 7.908% due 06/13/36 830 926 Sprint Capital Corp. 7.625% due 01/30/11 3,105 3,316 6.875% due 11/15/28 405 403 8.750% due 03/15/32 1,060 1,259 Sprint Nextel Corp. 6.000% due 12/01/16 1,035 1,006 Stingray Pass-Through Trust (A) 5.902% due 01/12/15 1,000 970 Structured Asset Mortgage Investments II (E) Series 2006-AR5 Class 1A2 5.610% due 05/25/36 1,300 1,304 Suncom Wireless, Inc. 8.500% due 06/01/13 1,335 1,362 Sungard Data Systems, Inc. 10.250% due 08/15/15 1,006 1,081 Swiss Re Capital I, LP (f)(p) 6.854% due 05/29/49 1,225 1,282 Symetra Financial Corp. (p) 6.125% due 04/01/16 900 905 TCI Communications, Inc. 7.875% due 02/15/26 145 167 TECO Energy, Inc. 7.200% due 05/01/11 745 781 Texas Eastern Transmission, LP 7.000% due 07/15/32 280 310
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Time Warner Entertainment Co., LP Series * 8.375% due 03/15/23 446 524 Time Warner, Inc. 5.606% due 11/13/09 (E) 1,185 1,186 5.500% due 11/15/11 850 848 5.875% due 11/15/16 425 424 7.700% due 05/01/32 450 509 6.500% due 11/15/36 375 373 Travelport, Ltd. (A) 11.875% due 09/01/16 1,950 2,101 Trump Entertainment Resorts, Inc. 8.500% due 06/01/15 1,490 1,475 Twin Reefs Pass-Through Trust (E)(f)(p) 6.320% due 12/10/49 900 902 TXU Electric Delivery Co. 7.000% due 09/01/22 1,145 1,226 TXU Energy Co. LLC 7.000% due 03/15/13 475 497 Unicredito Italiano NY (E) Series YCD 5.358% due 05/06/08 6,300 6,298 5.370% due 05/29/08 1,700 1,697 Union Pacific Corp. 6.625% due 02/01/08 265 267 3.625% due 06/01/10 85 80 6.125% due 01/15/12 800 821 Union Planters Corp. 7.750% due 03/01/11 265 287 UnitedHealth Group, Inc. 5.250% due 03/15/11 565 562 US Oncology, Inc. 9.000% due 08/15/12 555 588 USB Capital IX (f) 6.189% due 04/15/49 1,145 1,169 Valero Logistics Operations, LP 6.050% due 03/15/13 1,117 1,124 VeraSun Energy Corp. 9.875% due 12/15/12 685 716 Verizon Global Funding Corp. 7.250% due 12/01/10 800 851 5.850% due 09/15/35 1,330 1,257 Verizon, Inc. 6.500% due 09/15/11 70 72 Viacom, Inc. 5.741% due 06/16/09 (E) 690 692 5.750% due 04/30/11 935 936 6.875% due 04/30/36 580 578
Multistrategy Bond Fund 109 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Visteon Corp. 8.250% due 08/01/10 560 560 Wachovia Bank NA (E) Series BKNT 5.430% due 05/25/10 3,800 3,801 Wachovia Capital Trust III (f) 5.800% due 03/15/42 4,165 4,194 Wachovia Corp. (E) 5.426% due 10/28/08 3,000 3,004 Washington Mutual Preferred Funding II (f)(p) 6.665% due 12/31/49 300 304 Washington Mutual, Inc. 8.250% due 04/01/10 755 813 WellPoint, Inc. 4.250% due 12/15/09 532 516 5.850% due 01/15/36 765 743 Wells Fargo & Co. 4.950% due 10/16/13 390 378 Wells Fargo Bank NA 5.750% due 05/16/16 655 666 Wells Fargo Mortgage Backed Securities Trust Series 2006-AR6 Class 7A1 5.110% due 03/25/36 3,159 3,090 West Corp. (p) 9.500% due 10/15/14 1,165 1,180 Westpac Banking Corp. (E) Series DPNT 5.280% due 06/06/08 800 800 Weyerhaeuser Co. 7.375% due 03/15/32 720 765 Willis North America, Inc. 5.125% due 07/15/10 710 690 5.625% due 07/15/15 440 421 Wimar Opco LLC (A) 9.625% due 12/15/14 1,045 1,039 Windstream Corp. Series WI 8.125% due 08/01/13 615 662 8.625% due 08/01/16 375 409 Wyeth 6.950% due 03/15/11 2,830 2,993 5.500% due 02/01/14 900 898 Xcel Energy, Inc. 6.500% due 07/01/36 400 418 Xlliac Global Funding (p) 4.800% due 08/10/10 730 713 Yum! Brands, Inc. 8.875% due 04/15/11 350 390
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- ZFS Finance USA Trust II (p) 6.450% due 12/15/65 1,205 1,221 Zurich Capital Trust I (p) 8.376% due 06/01/37 1,345 1,408 ------------ 460,558 ------------ International Debt - 4.8% Abbey National PLC (f) 6.700% due 06/29/49 775 785 Abu Dhabi National Energy Co. (p) 5.875% due 10/27/16 845 844 6.500% due 10/27/36 2,050 2,081 America Movil SA de CV 5.500% due 03/01/14 500 487 Amvescap PLC 4.500% due 12/15/09 1,337 1,300 Arlington Street CDO, Ltd. (p) Series 2000-1A Class A2 7.660% due 06/10/12 1,680 1,674 Aspen Insurance Holdings, Ltd. 6.000% due 08/15/14 200 197 AXA SA 8.600% due 12/15/30 255 328 6.379% due 12/14/49 (f)(p) 400 392 6.463% due 12/31/49 (f)(p) 400 383 Banco Mercantil del Norte SA (A) 6.862% due 10/13/21 1,340 1,353 Barclays Bank PLC (f)(p) 7.375% due 06/29/49 910 978 Bowater Canada Finance Corp. 7.950% due 11/15/11 1,095 1,098 Brascan Corp. 7.125% due 06/15/12 675 721 British Telecommunications PLC 8.625% due 12/15/10 180 201 9.125% due 12/15/30 1,335 1,829 C10 Capital SPV, Ltd. (f)(p) 6.722% due 12/01/49 900 893 Canadian Natural Resources, Ltd. 5.850% due 02/01/35 75 69 6.500% due 02/15/37 700 699 Canadian Oil Sands, Ltd. (p) 4.800% due 08/10/09 481 471 Catalyst Paper Corp. Series D 8.625% due 06/15/11 1,550 1,593 China Development Bank 5.000% due 10/15/15 200 193 CIT Group Funding Co. of Canada 5.600% due 11/02/11 570 573
110 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Conoco Funding Co. 6.350% due 10/15/11 2,330 2,426 Corp. Nacional del Cobre de Chile (p) 6.150% due 10/24/36 100 102 Cosan Finance, Ltd. (A) 7.000% due 02/01/17 1,535 1,504 Deutsche Telekom International Finance BV 5.546% due 03/23/09 (E) 2,200 2,204 5.375% due 03/23/11 475 473 8.250% due 06/15/30 895 1,094 DNB Nor Bank ASA (E)(p) 5.430% due 10/13/09 6,300 6,298 Egypt Government AID Bonds 4.450% due 09/15/15 2,210 2,105 Endurance Specialty Holdings, Ltd. 6.150% due 10/15/15 500 495 Export-Import Bank of China (p) 4.875% due 07/21/15 1,290 1,236 Export-Import Bank of Korea 4.125% due 02/10/09 (p) 170 166 5.125% due 02/14/11 735 727 Falconbridge, Ltd. 7.250% due 07/15/12 275 297 6.000% due 10/15/15 1,280 1,304 FBG Finance, Ltd. (p) 5.125% due 06/15/15 585 551 Federative Republic of Brazil 6.000% due 01/17/17 2,975 2,907 France Telecom SA 8.500% due 03/01/31 625 817 Galaxy Entertainment Finance Co., Ltd. (p) 9.875% due 12/15/12 1,255 1,359 Gaz Capital for Gazprom (p) 6.212% due 11/22/16 850 839 HBOS PLC (f)(p) 5.920% due 09/29/49 700 685 HBOS Treasury Services PLC (E)(p) Series Mtn 5.420% due 07/17/09 1,600 1,601 HSBC Holdings PLC 6.500% due 05/02/36 850 907 Inco, Ltd. 5.700% due 10/15/15 1,050 1,034 Intelsat Bermuda, Ltd. (p) 11.250% due 06/15/16 1,285 1,452 Intelsat Subsidiary Holding Co., Ltd. (E) 10.252% due 01/15/12 1,030 1,040 ISA Capital do Brasil SA (A) 7.875% due 01/30/12 228 227
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Ispat Inland ULC 9.750% due 04/01/14 3,129 3,490 Korea Electric Power Corp. (p) 5.125% due 04/23/34 285 280 LG Electronics, Inc. (p) 5.000% due 06/17/10 390 381 Majapahit Holding BV (p) 7.250% due 10/17/11 485 495 Mantis Reef, Ltd. (p) 4.692% due 11/14/08 585 577 Mizuho Financial Group Cayman, Ltd. 5.790% due 04/15/14 (p) 790 789 Series REGS 5.790% due 04/15/14 185 184 Montpelier Re Holdings, Ltd. 6.125% due 08/15/13 710 690 MUFG Capital Finance 1, Ltd. (f) 6.346% due 07/25/49 670 676 Nationwide Building Society (p) 4.250% due 02/01/10 770 744 Nippon Life Insurance (p) 4.875% due 08/09/10 1,235 1,204 Norske Skogindustrier ASA (p) 7.125% due 10/15/33 1,565 1,473 Peru Enhanced Pass-Through Finance, Ltd. (p) Zero Coupon due 05/31/25 2,371 859 Petroleum Export, Ltd. (p) 5.265% due 06/15/11 178 172 Poland Government International Bond Series RSTA Step Up 4.750% due 10/27/24 750 692 Province of Quebec Canada Series PJ 6.125% due 01/22/11 2,855 2,947 Ras Laffan Liquefied Natural Gas Co., Ltd. II (p) 5.298% due 09/30/20 1,515 1,434 Ras Laffan Liquefied Natural Gas Co., Ltd. III 5.838% due 09/30/27 (p) 1,680 1,589 Series 2006- (p) 5.832% due 09/30/16 1,080 1,074 Resona Bank, Ltd. (f)(p) 5.850% due 09/29/49 2,705 2,629
Multistrategy Bond Fund 111 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Resona Preferred Global Securities Cayman, Ltd. (f)(p) 7.191% due 12/29/49 2,590 2,709 Rogers Wireless, Inc. 6.375% due 03/01/14 760 761 Royal Bank of Scotland Group PLC (f) Series 1 9.118% due 03/31/49 4,025 4,435 Royal Bank of Scotland PLC (E) 5.760% due 07/06/12 4,300 4,303 Russia Government International Bond (p) 5.000% due 03/31/30 2,450 2,719 Salomon Brothers AG for OAO Siberian Oil Co. Series REGS 10.750% due 01/15/09 1,315 1,430 Santander Financial Issuances 6.375% due 02/15/11 240 247 Santander US Debt SA Unipersonal (E)(p) 5.426% due 11/20/09 2,800 2,800 Sanwa Finance Aruba AEC 8.350% due 07/15/09 1,000 1,062 Sappi Papier Holding AG (p) 6.750% due 06/15/12 1,055 1,056 7.500% due 06/15/32 895 849 Seagate Technology HDD Holdings 6.800% due 10/01/16 1,255 1,252 Secunda International, Ltd. (E) 13.360% due 09/01/12 660 688 Shimao Property Holdings, Ltd. (p) 8.000% due 12/01/16 940 926 Shinsei Finance II (f)(p) 7.160% due 07/25/49 520 524 Siemens Financieringsmaatschappij NV (p) 6.125% due 08/17/26 870 884 SMFG Preferred Capital USD 1, Ltd. (f)(p) 6.078% due 01/29/49 600 590 Stora Enso Oyj (p) 7.250% due 04/15/36 795 827 Sumitomo Mitsui Banking Corp. (f)(p) 5.625% due 07/29/49 495 482 Systems 2001 AT LLC (p) 7.156% due 12/15/11 252 260 6.664% due 09/15/13 384 400 Telecom Italia Capital SA 4.000% due 01/15/10 1,706 1,632 4.875% due 10/01/10 950 922
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- 5.970% due 07/18/11 (E) 1,355 1,356 5.250% due 10/01/15 1,400 1,299 7.200% due 07/18/36 1,240 1,267 Telefonica Emisiones SAU 5.665% due 06/19/09 (E) 760 761 5.984% due 06/20/11 630 640 6.421% due 06/20/16 460 476 7.045% due 06/20/36 395 425 Telefonica Europe BV 7.750% due 09/15/10 2,000 2,144 8.250% due 09/15/30 655 790 Telefonos de Mexico SA de CV 4.500% due 11/19/08 1,418 1,391 TELUS Corp. 8.000% due 06/01/11 1,955 2,127 Transocean, Inc. (E) 5.591% due 09/05/08 1,200 1,201 Tyco International Group SA 6.750% due 02/15/11 2,545 2,689 UFJ Finance Aruba AEC 6.750% due 07/15/13 220 233 Unicredit Luxembourg Finance SA (E)(p) 5.410% due 10/24/08 1,245 1,245 Vale Overseas, Ltd. 6.250% due 01/11/16 460 462 6.250% due 01/23/17 1,925 1,929 6.875% due 11/21/36 1,140 1,160 Vedanta Resources PLC (p) 6.625% due 02/22/10 1,190 1,174 Vitro SA de CV (A) 8.625% due 02/01/12 420 424 9.125% due 02/01/17 850 858 Vodafone Group PLC 5.750% due 03/15/16 505 502 VTB Capital SA (E)(p) 5.970% due 08/01/08 1,900 1,902 Westfield Capital Corp., Ltd./WT Finance Aust Pty Ltd/WEA Finance LLC (p) 5.125% due 11/15/14 700 676 Westfield Group (p) 5.400% due 10/01/12 827 824
112 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Xstrata Finance Canada, Ltd. (p) 5.500% due 11/16/11 330 329 5.800% due 11/15/16 325 323 Xstrata Finance Dubai, Ltd. (E)(p) 5.725% due 11/13/09 775 775 ------------ 136,511 ------------ Loan Agreements - 1.1% ALLTEL Holding Corp., Term Loan 7.110% due 07/17/13 1,035 1,043 Avis Budget Holdings, Term Loan 6.610% due 04/19/12 498 497 AWAS, Second Lien Term Loan 11.375% due 03/21/13 620 627 Delphi Corp. Term Loan 8.125% due 12/31/07 400 400 Ford Motor Co. Term Loan B 8.360% due 12/15/13 3,500 3,548 General Motors Corp. Term Loan B 7.745% due 11/01/13 2,000 2,027 Georgia-Pacific Corp., Term Loan 7.345% due 12/20/12 58 58 7.353% due 12/20/12 934 944 7.364% due 12/20/12 222 232 Georgia-Pacific Corp., Term Loan B 7.114% due 12/20/12 1,400 1,406 HCA, Inc. Term Loan B 8.114% due 12/30/13 1,700 1,715 Healthsouth Corp., Term Loan B 8.610% due 03/10/13 1,891 1,909 Idearc, Inc., Term Loan B 7.330% due 11/17/14 900 907 Lyondell Chemical Co., Term Loan 7.121% due 08/16/13 898 905 Starbound Reinsurance, Ltd. Term Loan B II 7.400% due 03/31/08 9,000 9,000 Starbound Reinsurance, Ltd. Term Loan B III 6.900% due 03/31/08 2,000 2,000 Talecris Biotherapeutics, Inc., Second Lien Term Loan 13.500% due 12/06/14 800 814 United Airlines, Inc., Term Loan 11.000% due 02/01/12 162 163 United Airlines, Inc., Term Loan B 9.120% due 02/01/12 1,132 1,139 Visteon Corp. 8.380% due 06/13/13 900 903 ------------ 30,237 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Mortgage-Backed Securities - 42.0% Adjustable Rate Mortgage Trust (E) Series 2005-3 Class 8A2 5.560% due 07/25/35 1,524 1,527 American Home Mortgage Assets (E) Series 2006-2 Class 2A2 5.550% due 09/25/46 2,480 2,486 Series 2006-4 Class 1A11 5.540% due 08/30/36 3,155 3,159 Series 2007-1 Class A1 5.630% due 02/25/47 5,000 5,000 American Home Mortgage Investment Trust (E) Series 2004-1 Class 1A 5.670% due 04/25/44 377 377 Series 2004-4 Class 4A 4.390% due 02/25/45 802 788 Series 2005-2 Class 5A2 5.470% due 09/25/35 521 521 Banc of America Commercial Mortgage, Inc. Series 2004-3 Class A3 4.875% due 06/10/39 2,290 2,257 Series 2004-4 Class A3 4.128% due 07/10/42 1,475 1,431 Series 2005-2 Class A4 4.783% due 07/10/43 2,155 2,095 Series 2005-3 Class A2 4.501% due 07/10/43 1,110 1,079 Series 2005-5 Class A4 5.115% due 10/10/45 4,500 4,378 Series 2005-6 Class A4 5.180% due 09/10/47 3,000 2,945 Series 2006-3 Class A4 5.889% due 07/10/44 2,755 2,823 Series 2006-4 Class A4 5.634% due 07/10/46 2,865 2,886 Banc of America Funding Corp. Series 2005-8 Class 1A1 5.500% due 01/25/36 1,248 1,218 Series 2005-D Class A1 (E) 4.114% due 05/25/35 944 921 Series 2005-F Class 1A2 (E) 5.670% due 09/20/35 535 537 Series 2005-F Class 2A1 5.225% due 09/20/35 1,129 1,135 Series 2006-3 Class 5A8 5.500% due 03/25/36 2,800 2,762 Series 2006-A Class 3A2 5.917% due 02/20/36 1,235 1,239
Multistrategy Bond Fund 113 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2006-A Class 4A1 (E) 5.567% due 02/20/36 2,891 2,877 Banc of America Mortgage Securities, Inc. Series 2003-9 Class 1A12 (E) 5.770% due 12/25/33 3,555 3,565 Series 2003-D Class 1A2 (E) 6.114% due 05/25/33 7 7 Series 2004-1 Class 5A1 6.500% due 09/25/33 95 96 Series 2004-11 Class 2A1 5.750% due 01/25/35 2,457 2,418 Series 2004-D Class 1A1 (E) 3.518% due 05/25/34 845 842 Series 2005-9 Class 2A1 4.750% due 10/25/20 1,275 1,246 Series 2005-L Class 3A1 (E) 5.453% due 01/25/36 1,416 1,404 Series 2006-2 Class A15 6.000% due 07/25/36 2,374 2,392 Bank of America Alternative Loan Trust Series 2003-2 Class CB2 (E) 5.820% due 04/25/33 600 603 Series 2003-10 Class 2A1 6.000% due 12/25/33 600 599 Series 2003-10 Class 2A2 (E) 5.820% due 12/25/33 1,348 1,356 Series 2004-2 Class 1A1 6.000% due 03/25/34 411 410 Series 2004-10 Class 1CB1 6.000% due 11/25/34 393 394 Series 2004-11 Class 1CB1 6.000% due 12/25/34 459 459 Series 2005-3 Class 2A1 5.500% due 04/25/20 596 591 Series 2005-5 Class 2CB1 6.000% due 06/25/35 735 734 Series 2005-6 Class 7A1 5.500% due 07/25/20 793 786 Series 2005-9 Class 5A1 5.500% due 10/25/20 929 920 Series 2006-5 Class CB17 6.000% due 06/25/36 1,780 1,787 Bayview Financial Acquisition Trust (E) Series 2006-C Class 2A1 5.430% due 11/28/36 1,529 1,530 Bear Stearns Adjustable Rate Mortgage Trust Series 2003-8 Class 4A1 4.636% due 01/25/34 551 550 Series 2005-10 Class A1 (E) 4.750% due 10/25/35 4,098 4,047
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Bear Stearns Alt-A Trust Series 2005-4 Class 23A1 5.390% due 05/25/35 1,442 1,441 Series 2006-3 Class 33A1 (E) 6.185% due 05/25/36 1,628 1,645 Series 2006-3 Class 34A1 6.185% due 05/25/36 1,462 1,477 Series 2006-4 Class 23A5 6.239% due 08/25/36 1,304 1,318 Bear Stearns Asset Backed Securities, Inc. Series 2005-AC8 Class A5 5.500% due 11/25/35 1,142 1,138 Bear Stearns Commercial Mortgage Securities Series 2004-ESA Class E (p) 5.064% due 05/14/16 825 819 Series 2005-PW1 Class A4 5.405% due 12/11/40 3,500 3,475 Bear Stearns Mortgage Funding Trust 5.470% due 02/25/37 2,750 2,750 Series 2006-AR1 Class 1A2 (E) 5.570% due 07/25/36 2,063 2,060 Series 2006-AR2 Class 1A1 (E) 5.520% due 09/25/36 5,239 5,234 Series 2006-AR2 Class 2A1 (E) 5.550% due 10/25/36 2,460 2,459 Series 2006-AR3 Class 1A1 (E) 5.500% due 03/25/36 2,234 2,231 Series 2006-AR4 Class A1 (E) 5.530% due 04/25/36 2,800 2,800 Series 2006-AR5 Class 1A1 (E) 5.480% due 12/25/36 1,775 1,775 Chase Mortgage Finance Corp. Series 2003-S8 Class A1 4.500% due 09/25/18 1,331 1,269 Series 2003-S8 Class A2 5.000% due 09/25/18 1,909 1,875 Series 2006-S4 Class A3 6.000% due 12/25/36 1,985 1,996 Series 2006-S4 Class A4 6.000% due 12/25/36 1,045 1,049 Citigroup Mortgage Loan Trust, Inc. Series 2005-11 Class A2A (E) 4.700% due 12/25/35 355 349
114 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2006-WF1 Class A2F 5.657% due 03/01/36 1,925 1,893 Series 2006-WFH Class A2 (E) 5.420% due 11/25/36 6,300 6,300 Series 2007-AR1 Class A1 (E) 5.430% due 01/25/37 1,775 1,775 Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2005-CD1 Class A4 5.226% due 07/15/44 4,000 3,949 Series 2006-CD3 Class A5 5.617% due 10/15/48 1,390 1,397 Citimortgage Alternative Loan Trust Series 2006-A3 Class 1A5 6.000% due 07/25/36 1,429 1,431 Commercial Mortgage Pass Through Certificates Series 2001-J1A Class A2 (p) 6.457% due 02/16/34 683 703 Series 2006-C7 Class A2 5.690% due 06/10/46 825 833 Countrywide Alternative Loan Trust Series 2004-28C Class 6A1 6.000% due 01/25/35 628 627 Series 2004-J7 Class 1A2 4.673% due 08/25/34 299 296 Series 2004-J8 Class 1A1 7.000% due 09/25/34 657 669 Series 2005-51 Class 1A1 (E) 5.640% due 11/20/35 688 691 Series 2005-56 Class 2A2 (E) 6.798% due 11/25/35 1,768 1,772 Series 2005-58 Class A2 (E) 5.710% due 12/20/35 1,658 1,664 Series 2005-59 Class 1A1 (E) 5.680% due 11/20/35 1,920 1,926 Series 2005-59 Class 1A2B (E) 5.580% due 11/20/35 1,003 1,005 Series 2005-62 Class 1A1 (E) 5.620% due 12/25/35 2,555 2,565 Series 2005-63 Class 3A1 5.896% due 11/25/35 1,319 1,318 Series 2005-76 Class 2A2 (E) 6.458% due 02/25/36 2,184 2,206 Series 2005-81 Class X1 Interest Only STRIP 1.736% due 02/25/37 7,023 381 Series 2005-J13 Class 2A3 5.500% due 11/25/35 946 940 Series 2005-J8 Class 1A3 5.500% due 07/25/35 1,677 1,666 Series 2006-2CB Class A3 5.500% due 03/25/36 1,007 1,008
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2006-9T1 Class A7 6.000% due 05/25/36 921 926 Series 2006-43C Class 1A7 6.000% due 02/25/37 2,980 2,969 Series 2006-J2 Class A3 6.000% due 04/25/36 1,375 1,380 Series 2006-OA1 Class 1XP Interest Only STRIP 1.368% due 10/25/36 21,648 1,124 Series 2006-OA1 Class 2X Interest Only STRIP 1.790% due 03/20/46 9,998 467 Series 2006-OA1 Class 4A1 (E) 5.540% due 08/25/46 3,834 3,835 Series 2006-OA1 Class A1 (E) 5.500% due 02/20/47 3,952 3,944 Series 2006-OA1 Class A1A (E) 5.370% due 09/25/46 1,670 1,670 Series 2006-OA1 Class XBJ Interest Only STRIP 2.832% due 08/25/46 6,650 278 Series 2006-OA2 Class CP (p) Interest Only STRIP 2.079% due 09/25/35 25,850 1,404 Series 2006-OA2 Class X Interest Only STRIP Zero coupon due 03/20/47 19,422 1,105 Series 2006-OA6 Class 1A3 (E) 5.590% due 04/25/36 1,508 1,514 Countrywide Home Loan Mortgage Pass Through Trust Series 2004-16 Class 1A1 (E) 5.720% due 09/25/34 1,893 1,901 Series 2005-23 Class A1 5.500% due 11/25/35 3,264 3,184 Series 2005-29 Class A1 5.750% due 12/25/35 1,869 1,843 Series 2005-HYB Class 3A2A (E) 5.250% due 02/20/36 420 415 Series 2006-1 Class A2 6.000% due 03/25/36 1,059 1,054 Series 2006-1 Class A3 6.000% due 03/25/36 382 378 Series 2006-HYB Class 3A1A 6.113% due 05/20/36 1,514 1,544 Series 2006-OA5 Class 2A1 (E) 5.520% due 04/25/46 4,546 4,540
Multistrategy Bond Fund 115 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Credit Suisse First Boston Mortgage Securities Corp. Series 2001-SPG Class A2 (p) 6.515% due 08/13/18 400 418 Series 2003-29 Class 5A1 7.000% due 12/25/33 150 152 Series 2004-1 Class 3A1 7.000% due 02/25/34 62 63 Series 2004-C1 Class A3 4.321% due 01/15/37 1,895 1,821 Credit Suisse Mortgage Capital Certificates Series 2006-C1 Class AAB 5.556% due 02/15/39 450 452 Series 2006-C4 Class A3 5.467% due 09/15/39 2,000 1,989 Crown Castle Towers LLC (p) Series 2005-1A 5.074% due 06/15/35 460 452 Series 2006-1A Class B 5.362% due 11/15/36 995 988 CS First Boston Mortgage Securities Corp. Series 1998-C2 Class A2 6.300% due 11/15/30 721 728 Deutsche ALT-A Securities, Inc. Alternate Loan Trust Series 2005-AR1 Class 2A3 5.010% due 08/25/35 2,810 2,827 DLJ Commercial Mortgage Corp. Series 1998-CF1 Class A1B 6.410% due 02/18/31 1,549 1,555 Series 1999-CG1 Class S Interest Only STRIP 0.814% due 03/10/32 18,853 332 Downey Savings & Loan Association Mortgage Loan Trust Series 2004-AR3 Class 1A1B (E) 7.141% due 07/19/44 633 639 Series 2006-AR1 Class 2A1A (E) 5.767% due 04/19/47 2,306 2,309 Series 2006-AR2 Class 2A1A (E) 5.520% due 11/19/37 2,506 2,509 Fannie Mae 7.000% due 2009 51 51 5.363% due 2012 1,493 1,486 5.500% due 2016 93 93 6.000% due 2016 1,044 1,059 11.000% due 2016 103 113 5.000% due 2017 762 749 5.500% due 2017 494 494 6.000% due 2017 612 618 6.500% due 2017 353 360 4.000% due 2018 5,531 5,186
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- 4.500% due 2018 12,710 12,218 5.000% due 2018 16,495 16,168 4.500% due 2019 1,534 1,474 5.000% due 2019 3,018 2,956 4.500% due 2020 2,590 2,490 5.000% due 2020 5,534 5,417 5.500% due 2020 544 542 5.000% due 2021 3,379 3,303 6.500% due 2024 1,864 1,903 7.500% due 2024 10 11 6.500% due 2025 1,109 1,132 6.992% due 2026 (E) 262 266 7.000% due 2026 254 262 9.000% due 2026 45 48 7.000% due 2027 8 9 7.500% due 2027 8 8 6.500% due 2028 3 3 7.000% due 2028 180 186 5.500% due 2029 1,801 1,780 7.000% due 2029 2,361 2,435 7.500% due 2029 55 57 7.000% due 2030 917 946 7.500% due 2030 401 415 8.000% due 2030 401 424 8.500% due 2030 756 815 9.500% due 2030 100 109 7.000% due 2031 1,869 1,924 7.500% due 2031 560 584 8.000% due 2031 707 746 8.500% due 2031 448 481 6.000% due 2032 3,100 3,123 6.500% due 2032 346 354 7.000% due 2032 6,034 6,208 7.500% due 2032 333 347 8.000% due 2032 3 4 8.500% due 2032 61 66 3.905% due 2033 (E) 1,933 1,906 4.681% due 2033 (E) 1,157 1,163 5.000% due 2033 4,233 4,078 5.500% due 2033 4,479 4,417 6.000% due 2033 999 1,005 7.000% due 2033 562 576 5.000% due 2034 4,722 4,546 5.500% due 2034 42,979 42,365
116 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- 6.000% due 2034 1,716 1,725 7.000% due 2034 405 416 7.500% due 2034 246 254 4.174% due 2035 (E) 4,424 4,366 4.565% due 2035 (E) 2,803 2,782 4.834% due 2035 (E) 4,482 4,447 5.000% due 2035 2,350 2,259 5.500% due 2035 68,071 67,015 6.000% due 2035 2,054 2,063 7.000% due 2035 1,319 1,355 7.500% due 2035 2,149 2,232 5.000% due 2036 40,457 38,859 5.500% due 2036 7,942 7,811 6.000% due 2036 18,115 18,167 6.500% due 2036 865 880 7.000% due 2036 1,002 1,027 7.500% due 2036 6,267 6,498 6.227% due 2040 (E) 712 725 15 Year TBA (I) 4.500% 2,010 1,929 5.000% 9,975 9,757 5.500% 8,165 8,129 6.000% 6,565 6,637 30 Year TBA (I) 4.500% 3,815 3,552 5.000% 36,890 35,391 5.500% 83,090 81,713 6.000% 33,910 34,027 6.500% 15,600 15,858 7.000% 23,260 23,827 Series 1997-281 Class 2 Interest Only STRIP 9.000% due 11/01/26 45 12 Series 1997-68 Class SC (E) Interest Only STRIP 3.156% due 05/18/27 119 11 Series 2000-306 Class IO Interest Only STRIP 8.000% due 05/01/30 51 12 Series 2001-317 Class 2 Interest Only STRIP 8.000% due 08/01/31 103 25 Series 2001-4 Class SA (E) Interest Only STRIP 2.230% due 02/17/31 230 14 Series 2002-320 Class 2 Interest Only STRIP 7.000% due 03/01/32 32 8 Series 2002-50 Class SC (E) Interest Only STRIP 2.780% due 12/25/29 15 -- Series 2003-122 Class AJ 4.500% due 02/25/28 427 416
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2003-16 Class NI Interest Only STRIP 5.000% due 02/25/15 463 16 Series 2003-25 Class IK Interest Only STRIP 7.000% due 04/25/33 374 89 Series 2003-32 Class FH (E) 5.720% due 11/25/22 2,134 2,155 Series 2003-32 Class UI Interest Only STRIP 6.000% due 05/25/33 463 110 Series 2003-33 Class IA Interest Only STRIP 6.500% due 05/25/33 2,087 479 Series 2003-337 Class 1 Principal Only STRIP Zero coupon due 07/01/33 2,141 1,551 Series 2003-343 Class 6 Interest Only STRIP 5.000% due 10/01/33 2,126 477 Series 2003-35 Class IU Interest Only STRIP 6.000% due 05/25/33 504 116 Series 2003-35 Class UI Interest Only STRIP 6.500% due 05/25/33 502 117 Series 2003-64 Class JI Interest Only STRIP 6.000% due 07/25/33 504 117 Series 2003-78 Class FI (E) 5.720% due 01/25/33 2,087 2,097 Series 2003-82 Class IA Interest Only STRIP 6.000% due 08/25/32 461 64 Series 2003-82 Class WI Interest Only STRIP 6.000% due 08/25/32 76 10 Series 2004-21 Class FL (E) 5.670% due 11/25/32 1,025 1,028 Series 2005-110 Class MB 5.500% due 09/25/35 1,875 1,879 Series 2005-69 Class IO (E) Principal Only STRIP Zero coupon due 08/25/35 54 10
Multistrategy Bond Fund 117 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2006-369 Class 8 Interest Only STRIP 5.500% due 04/01/36 1,850 451 Fannie Mae Grantor Trust Series 1999-T2 Class A1 7.500% due 01/19/39 41 43 Series 2001-T8 Class A2 9.500% due 07/25/41 225 241 Fannie Mae REMICS Series 2005-36 Class AI Interest Only STRIP 5.500% due 10/25/26 2,810 222 Series 2006-118 Class A2 (E) 5.380% due 12/25/36 1,660 1,658 Series 2006-5 Class 3A2 (E) 4.677% due 05/25/35 300 295 Fannie Mae Whole Loan Series 2003-W17 Class 1A6 5.310% due 08/25/33 5,400 5,331 Series 2004-W11 Class 1A2 6.500% due 05/25/44 624 637 Series 2004-W9 Class 2A1 6.500% due 02/25/44 341 347 FBR Securitization Trust (E) Series 2005-4 Class AV21 5.440% due 10/25/35 431 431 Federal Home Loan Mortgage Corp. Structured Pass Through Securities Series 2003-58 Class 2A 6.500% due 09/25/43 317 322 Series 2005-63 Class 1A1 (E) 5.958% due 02/25/45 234 233 FHA PJ Reilly 67 NCP 7.430% due 07/01/24 63 63 First Horizon Alternative Mortgage Securities Series 2005-AA2 Class 1A1 (E) 5.078% due 03/25/35 450 449 Series 2005-AA5 Class 1A1 (E) 5.317% due 07/25/35 514 513 Series 2006-AA5 Class A2 (E) 6.626% due 09/25/36 1,297 1,323 Series 2006-FA3 Class A6 6.000% due 07/25/36 1,605 1,617 First Horizon Asset Securities, Inc. Series 2003-5 Class 1A17 8.000% due 07/25/33 136 144 Series 2004-AR5 Class 4A1 (E) 5.682% due 10/25/34 421 419 Series 2005-AR5 Class 3A1 (E) 5.527% due 10/25/35 660 658
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- First Union-Lehman Brothers-Bank of America Series 1998-C2 Class A2 6.560% due 11/18/35 15 15 Freddie Mac 12.000% due 2013 12 13 12.000% due 2014 16 17 11.000% due 2015 13 14 10.000% due 2016 54 59 12.000% due 2016 2 2 4.500% due 2018 2,871 2,756 5.000% due 2018 4,182 4,098 4.000% due 2019 12,984 12,150 5.000% due 2019 6,144 6,017 4.500% due 2020 2,577 2,475 11.000% due 2020 57 63 5.000% due 2021 1,712 1,678 4.235% due 2034 (E) 262 266 4.642% due 2034 (E) 1,167 1,176 4.919% due 2034 (E) 2,850 2,825 4.817% due 2035 (E) 2,751 2,737 4.859% due 2035 (E) 4,690 4,642 6.000% due 2035 1,269 1,268 5.951% due 2036 (E) 2,332 2,342 5.971% due 2036 (E) 1,085 1,098 30 Year TBA (I) 5.000% 12,540 12,042 5.500% 12,085 11,892 5.570% (E) 41 1,024 6.000% 4,510 4,526 Series 1999-212 Class SG (E) Interest Only STRIP 1.625% due 06/17/27 1,897 71 Series 2000-224 Class SC (E) Interest Only STRIP 2.180% due 08/15/30 71 2 Series 2000-226 Class F (E) 5.770% due 11/15/30 95 95 Series 2001-229 Class KF (E) 5.570% due 07/25/22 723 705 Series 2002-246 Class SJ (E) Interest Only STRIP 2.680% due 03/15/32 261 21 Series 2003-256 Class IM Interest Only STRIP 5.000% due 09/15/14 588 21 Series 2003-259 Class IQ Interest Only STRIP 5.000% due 06/15/17 1,464 171
118 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2003-262 Class AB Interest Only STRIP 2.900% due 11/15/14 2,035 1,969 Series 2003-264 Class IM Interest Only STRIP 7.000% due 07/15/33 455 110 Series 2003-266 Class MA 4.500% due 10/15/31 830 813 Series 2004-276 Class IP Interest Only STRIP 5.500% due 07/15/23 1,745 77 Series 2004-277 Class UF (E) 5.620% due 06/15/33 2,577 2,580 Series 2004-281 Class DF (E) 5.770% due 06/15/23 765 770 Series 2004-287 Class GC 5.000% due 11/15/29 520 509 Series 2004-289 Class PC 5.000% due 07/15/30 1,060 1,036 Series 2005-291 Class KP 5.000% due 11/15/29 1,155 1,131 Series 2005-292 Class IG Interest Only STRIP 5.000% due 04/15/23 1,035 163 Series 2005-292 Class NA 5.000% due 12/15/20 1,266 1,260 Series 2005-294 Class FA (E) 5.490% due 03/15/20 1,494 1,493 Series 2005-302 Class MB 5.000% due 12/15/28 640 631 Series 2005-303 Class AQ 4.500% due 10/15/22 3,579 3,546 Series 2005-306 Class PC 5.000% due 02/15/29 1,795 1,768 Series 2006-313 Class FP (E) Zero coupon due 04/15/36 1,113 1,150 Freddie Mac Gold 6.000% due 2016 128 130 5.000% due 2018 259 253 5.500% due 2020 5,764 5,742 8.000% due 2020 130 137 10.500% due 2021 33 36 8.500% due 2025 37 40 7.000% due 2027 246 254 8.500% due 2027 193 207 7.500% due 2028 57 60 7.500% due 2029 96 100 6.500% due 2030 8 8 7.188% due 2030 (E) 8 9 7.500% due 2030 254 264 8.000% due 2030 85 89
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- 8.500% due 2030 209 224 7.000% due 2031 504 521 7.500% due 2031 159 166 8.000% due 2031 291 302 7.000% due 2032 277 286 7.500% due 2032 138 145 5.000% due 2033 1,934 1,870 6.500% due 2033 133 136 7.000% due 2033 75 77 7.500% due 2033 119 124 Series 1998-191 Class IO Interest Only STRIP 8.000% due 01/01/28 40 9 Series 1998-194 Class IO Interest Only STRIP 6.500% due 04/01/28 248 57 Series 2001-212 Class IO Interest Only STRIP 6.000% due 05/01/31 378 84 Series 2001-215 Class IO Interest Only STRIP 8.000% due 06/01/31 175 43 Freddie Mac Reference REMIC Series 2006-R00 Class AK 5.750% due 12/15/18 2,026 2,023 Series 2006-R00 Class FK (E) 5.720% due 07/15/23 3,797 3,815 Freddie Mac REMIC Series 2004-277 Class KE 3.500% due 12/15/17 218 217 Freddie Mac REMICS Series 2003-256 Class FJ (E) 5.720% due 02/15/33 1,266 1,277 Series 2003-269 Class FE (E) 5.920% due 12/15/28 2,186 2,204 Series 2005-299 Class KF (E) 5.720% due 06/15/35 718 718 Series 2005-300 Class ED 5.000% due 07/15/25 1,655 1,556 Series 2006-323 Class PA 6.000% due 03/15/26 2,125 2,146 GE Capital Commercial Mortgage Corp. Series 2002-1A Class A3 6.269% due 12/10/35 745 772 Series 2002-3A Class A1 4.229% due 12/10/37 4,310 4,206 Ginnie Mae 30 Year TBA (I) 5.500% 12,430 12,302 6.000% 1,000 1,009
Multistrategy Bond Fund 119 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Ginnie Mae I 11.000% due 2010 18 18 11.000% due 2013 11 12 10.500% due 2015 44 48 11.000% due 2015 3 3 10.500% due 2016 71 81 10.500% due 2021 63 71 10.000% due 2022 68 75 9.500% due 2023 277 302 10.000% due 2025 83 92 7.500% due 2031 53 55 Ginnie Mae II 4.750% due 2023 (E) 21 21 5.125% due 2023 (E) 37 37 5.375% due 2023 (E) 107 107 4.750% due 2024 (E) 145 146 5.125% due 2024 (E) 164 166 5.125% due 2025 (E) 14 14 5.375% due 2025 (E) 312 314 5.750% due 2025 (E) 9 9 5.125% due 2026 (E) 69 70 8.500% due 2026 48 51 4.750% due 2027 (E) 33 34 5.375% due 2027 (E) 116 116 5.750% due 2027 (E) 147 148 5.125% due 2029 (E) 450 457 Global Signal Trust (p) Series 2004-2A Class A 4.232% due 12/15/14 655 635 Series 2006-1 Class B 5.588% due 02/15/36 415 415 Series 2006-1 Class C 5.707% due 02/15/36 635 635 GMAC Mortgage Corp. Loan Trust Series 2005-AR2 Class 4A (E) 5.191% due 05/25/35 1,193 1,170 Series 2005-AR6 Class 3A1 5.299% due 11/19/35 2,350 2,325 Series 2006-HE3 Class A2 5.799% due 10/25/36 495 495 Government National Mortgage Association Series 1999-27 Class SE (E) Interest Only STRIP 3.280% due 08/16/29 114 11 Series 1999-40 Class FE (E) 5.870% due 11/16/29 1,075 1,085 Series 1999-44 Class SA (E) Interest Only STRIP 3.230% due 12/16/29 211 19 Series 2001-46 Class SA (E) Interest Only STRIP 2.260% due 09/16/31 43 2
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2003-5 Class B 4.486% due 10/16/25 795 775 Greenpoint Mortgage Funding Trust Series 2005-AR3 Class X1 Interest Only STRIP 1.273% due 08/25/45 5,975 181 Series 2005-AR4 Class X4 Interest Only STRIP 2.238% due 10/25/45 7,851 242 Series 2006-AR2 Class 3A2 (E) 5.640% due 03/25/36 2,051 2,053 Greenwich Capital Commercial Funding Corp. Series 2004-GG1 Class A7 5.317% due 06/10/36 3,430 3,395 Series 2005-GG5 Class A41 5.243% due 04/10/37 2,155 2,134 Series 2006-RR1 Class A1 (p) 5.781% due 03/18/49 1,495 1,514 GS Mortgage Securities Corp. (p) Series 2006-OA1 Class A Interest Only 3.258% due 08/25/35 5,424 215 GS Mortgage Securities Corp. II Series 2006-FL8 Class A1 (E)(p) 5.420% due 06/06/20 1,032 1,032 Series 2006-GG6 Class A4 5.553% due 04/10/38 840 842 Series 2006-GG8 Class A4 5.560% due 11/10/39 1,170 1,173 Series 2006-GG8 Class AAB 5.535% due 11/10/39 1,445 1,447 Series 2006-RR2 Class A1 (p) 5.689% due 01/07/36 925 925 Series 2006-RR3 Class A1S (p) 5.466% due 03/18/49 1,605 1,612 GSMPS Mortgage Loan Trust (p) Series 1998-3 Class A 7.750% due 09/19/27 153 160 Series 1999-3 Class A 8.000% due 08/19/29 281 295 Series 2005-RP1 Class 1A3 8.000% due 01/25/35 835 880 Series 2005-RP1 Class 1A4 8.500% due 01/25/35 426 453 Series 2006-RP1 Class 1A3 8.000% due 01/25/36 513 522
120 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- GSR Mortgage Loan Trust Series 2004-7 Class 1A1 3.393% due 06/25/34 1,432 1,429 Series 2005-AR6 Class 2A1 (E) 4.539% due 09/25/35 4,415 4,331 Series 2006-1F Class 5A2 6.000% due 02/25/36 611 605 Series 2006-OA1 Class 2A1 (E) 5.510% due 08/25/46 2,420 2,420 Harborview Mortgage Loan Trust Series 2005-10 Class 2A1A (E) 5.630% due 11/19/35 3,010 3,018 Series 2005-10 Class 2A1B (E) 5.700% due 11/19/35 1,003 1,008 Series 2005-14 Class 3A1A 5.320% due 12/19/35 696 694 Series 2005-15 Class 2A11 (E) 5.590% due 10/20/45 2,592 2,599 Series 2005-16 Class 3A1A (E) 5.570% due 01/19/36 3,278 3,288 Series 2005-16 Class 3A1B (E) 5.660% due 01/19/36 1,384 1,388 Series 2005-16 Class X1 Interest Only STRIP 2.287% due 01/19/36 5,402 154 Series 2005-16 Class X3 Interest Only STRIP 2.009% due 01/19/36 14,258 374 Series 2005-2 Class X Interest Only STRIP 1.704% due 05/19/35 9,357 231 Series 2005-3 Class X2 Interest Only STRIP 1.412% due 06/19/35 8,916 212 Series 2005-5 Class 2A1B (E) 5.610% due 07/19/45 613 614 Series 2006-1 Class 2A1A (E) 5.560% due 03/19/37 1,680 1,683 Series 2006-1 Class PO1 5.510% due 03/19/37 4 3 Series 2006-1 Class X1 Interest Only STRIP 2.076% due 03/19/37 9,796 452 Series 2006-10 Class 2A1A (E) 5.530% due 11/19/36 2,949 2,950 Series 2006-12 Class 2A2A (E) 1.000% due 01/19/38 4,497 4,497 Series 2006-14 Class 2A1A (E) 1.000% due 02/19/37 2,050 2,050 Series 2006-5 Class PO2 1.000% due 07/19/47 -- -- Series 2006-5 Class X2 Interest Only STRIP 2.193% due 07/19/47 12,374 466
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2006-7 Class 2A1B (E) 5.600% due 08/19/46 2,012 2,016 Series 2006-9 Class 2A1A (E) 5.560% due 11/19/36 2,689 2,689 Impac CMB Trust (E) Series 2004-3 Class 1A 5.570% due 06/25/34 302 302 Indymac Index Mortgage Loan Trust Series 2005-AR1 Class AX2 Interest Only STRIP 1.344% due 07/25/35 7,148 232 Series 2005-AR2 Class 1A21 5.877% due 12/25/35 978 976 Series 2005-AR3 Class 1A1 5.187% due 01/25/36 2,254 2,265 Series 2006-AR2 Class A2 (E) 5.400% due 11/25/36 1,093 1,093 Series 2006-AR6 Class 2A1B (E) 5.700% due 06/25/47 2,366 2,373 Series 2006-FLX Class A1 (E) 5.530% due 11/25/36 1,649 1,649 JP Morgan Chase Commercial Mortgage Securities Corp. Series 2002-C1 Class A3 5.376% due 07/12/37 1,180 1,178 Series 2003-C1 Class A2 4.985% due 01/12/37 1,618 1,581 Series 2004-LN2 Class A1 4.475% due 07/15/41 1,770 1,715 Series 2005-LDP Class A3A1 4.871% due 10/15/42 1,560 1,523 Series 2005-LDP Class A4 4.918% due 10/15/42 735 705 Series 2006-CB1 Class A4 5.814% due 06/12/43 3,000 3,062 5.817% due 05/12/45 1,550 1,552 Series 2006-LDP Class A4 5.876% due 04/15/45 1,355 1,397 5.561% due 05/15/45 2,070 2,049 Series 2006-LDP Class AJ 5.876% due 04/15/45 1,110 1,140 Series 2006-RR1 Class A1 (p) 5.455% due 10/18/52 930 923 JP Morgan Mortgage Trust Series 2005-A1 Class 4A1 (E) 4.776% due 02/25/35 1,753 1,689
Multistrategy Bond Fund 121 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2005-A4 Class 1A1 5.406% due 07/25/35 863 851 Series 2005-A6 Class 1A2 5.152% due 09/25/35 1,470 1,466 Series 2007-A1 Class 1A1 (E) 4.202% due 07/25/35 1,000 981 Series 2007-A1 Class 2A1 (E) 4.768% due 07/25/35 1,000 989 Series 2007-A1 Class 4A2 (E) Zero coupon due 07/25/35 1,000 980 Series 2007-A1 Class 5A2 (E) 4.771% due 07/25/35 1,000 990 LB-UBS Commercial Mortgage Trust Series 2002-C1 Class A4 6.462% due 03/15/31 65 68 Series 2004-C4 Class A3 4.983% due 06/15/29 3,135 3,117 Series 2006-C1 Class A4 5.156% due 02/15/31 4,000 3,905 Series 2006-C4 Class A4 5.899% due 06/15/38 780 806 Lehman Mortgage Trust Series 2005-2 Class 2A3 5.500% due 12/25/35 1,016 1,013 Series 2005-3 Class 1A3 5.500% due 01/25/36 3,853 3,853 Lehman XS Trust (E) Series 2005-5N Class 3A1A 5.620% due 11/25/35 2,855 2,857 Series 2005-9N Class 1A1 5.590% due 02/25/36 856 858 Series 2006-16N Class A4A 5.510% due 11/25/46 4,164 4,168 Luminent Mortgage Trust (E) Series 2006-1 Class A1 5.560% due 04/25/36 1,621 1,625 Series 2006-3 Class 11A2 5.570% due 09/25/35 1,433 1,438 Series 2006-6 Class A1 5.600% due 10/25/46 1,787 1,790 Mastr Adjustable Rate Mortgages Trust Series 2005-6 Class 7A1 5.375% due 06/25/35 543 536 Series 2006-OA2 Class 4A1A (E) 5.677% due 12/25/46 2,978 2,978 Mastr Alternative Loans Trust Series 2003-4 Class B1 5.664% due 06/25/33 1,151 1,152 Series 2003-6 Class 3A1 8.000% due 09/25/33 116 119 Series 2003-9 Class 1A1 5.500% due 12/25/18 420 415
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2004-10 Class 5A6 5.750% due 09/25/34 1,255 1,232 Series 2005-3 Class 7A1 6.000% due 04/25/35 775 775 Mastr Asset Securitization Trust (E) Series 2003-11 Class 6A8 5.820% due 12/25/33 2,523 2,536 Series 2003-7 Class 4A35 5.720% due 09/25/33 1,940 1,942 Series 2004-4 Class 2A2 5.770% due 04/25/34 776 776 Mastr Reperforming Loan Trust (p) Series 2005-1 Class 1A5 8.000% due 08/25/34 681 716 Series 2005-2 Class 1A4 8.000% due 05/25/35 987 1,004 Mastr Specialized Loan Trust (p) Series 2005-2 Class A2 5.006% due 07/25/35 482 473 Mellon Residential Funding Corp. (E) Series 2000-TBC Class A1 5.560% due 06/15/30 997 997 Merrill Lynch Mortgage Investors, Inc. (E) Series 2005-A6 Class 2A1 5.440% due 08/25/35 652 652 Merrill Lynch Mortgage Trust Series 2002-MW1 Class J (p) 5.695% due 07/12/34 365 356 Series 2004-MKB Class A2 4.353% due 02/12/42 1,940 1,894 Series 2005-CIP Class A2 4.960% due 07/12/38 225 222 Series 2005-GGP Class E (p) 4.330% due 11/15/10 185 183 Series 2005-GGP Class F (p) 4.351% due 11/15/10 180 178 MLCC Mortgage Investors, Inc. (E) Series 2004-HB1 Class A2 5.771% due 04/25/29 414 415 Morgan Stanley Capital I Series 1999-FNV Class G (p) 6.120% due 03/15/31 400 402 Series 2005-IQ1 Class AAB 5.178% due 09/15/42 2,510 2,477 Series 2006-HQ8 Class A4 5.388% due 03/12/44 1,130 1,128 Series 2006-HQ9 Class A4 5.731% due 07/20/44 1,464 1,484
122 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Morgan Stanley Dean Witter Capital I (p) Series 2001-TOP Class E 7.313% due 02/15/33 180 190 Morgan Stanley Mortgage Loan Trust Series 2006-11 Class 1A6 6.231% due 08/25/36 1,605 1,628 Series 2006-2 Class 6A 6.500% due 02/25/36 678 686 Nomura Asset Acceptance Corp. Series 2005-WF1 Class 2A2 4.786% due 03/25/35 1,285 1,263 Series 2006-AF1 Class 1A2 6.159% due 05/25/36 1,525 1,538 Prime Mortgage Trust Series 2004-CL1 Class 1A1 6.000% due 02/25/34 239 239 Series 2004-CL1 Class 1A2 (E) 5.720% due 02/25/34 176 176 Series 2004-CL1 Class 2A2 (E) 5.720% due 02/25/19 47 47 Residential Accredit Loans, Inc. Series 2004-QS5 Class A6 (E) 5.950% due 04/25/34 419 421 Series 2004-QS8 Class A4 (E) 5.750% due 06/25/34 1,989 1,997 Series 2005-QA1 Class A41 5.717% due 09/25/35 702 698 Series 2005-QA8 Class NB3 5.500% due 07/25/35 1,408 1,407 Series 2005-QO4 Class 2A1 (E) 5.630% due 12/25/45 3,510 3,523 Series 2006-QH1 Class A1 (E) 5.540% due 12/25/36 2,161 2,162 Series 2006-QO1 Class 1A1 (E) 5.610% due 02/25/46 720 720 Series 2006-QO1 Class 2A1 (E) 5.620% due 02/25/46 818 817 Series 2006-QO6 Class A2 (E) 5.580% due 06/25/46 2,514 2,509 Series 2006-QS6 Class 1A13 6.000% due 06/25/36 3,300 3,311 Series 2007-QH1 Class A1 (E) 5.470% due 02/25/37 2,125 2,125 Residential Asset Mortgage Products, Inc. Series 2004-SL1 Class A3 7.000% due 11/25/31 191 194 Series 2004-SL4 Class A3 6.500% due 07/25/32 435 441 Series 2005-SL1 Class A2 6.000% due 05/25/32 634 645
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Residential Asset Securities Corp. (E) Series 2003-KS4 Class AIIB 5.640% due 06/25/33 486 486 Residential Asset Securitization Trust (E) Series 2003-A15 Class 1A2 5.770% due 02/25/34 2,284 2,291 Residential Funding Mortgage Securities I Series 2003-S14 Class A5 (E) 5.750% due 07/25/18 1,799 1,807 Series 2003-S20 Class 1A7 (E) 5.850% due 12/25/33 281 282 Series 2003-S5 Class 1A2 (E) 5.800% due 11/25/18 1,153 1,159 Series 2006-SA3 Class 3A1 6.079% due 09/25/36 1,464 1,472 Series 2006-SA4 Class 2A1 6.164% due 10/25/36 815 824 Sequoia Mortgage Trust (E) Series 2004-3 Class A 5.306% due 04/20/34 2,628 2,628 Small Business Administration Participation Certificates Series 2004-20F Class 1 5.520% due 06/01/24 335 337 Structured Adjustable Rate Mortgage Loan Trust Series 2004-18 Class 5A 5.500% due 12/25/34 486 481 Series 2005-22 Class 4A2 5.380% due 12/25/35 135 133 Series 2006-5 Class 5A4 5.582% due 06/25/36 323 320 Structured Asset Mortgage Investments, Inc. (E) Series 2006-AR1 Class 3A1 5.550% due 02/25/36 910 910 Series 2006-AR3 Class 11A2 5.620% due 04/25/36 2,699 2,699 Series 2006-AR3 Class 3A1 5.540% due 02/25/36 1,122 1,124 Series 2006-AR8 Class A1A 5.520% due 10/25/36 5,384 5,383 Structured Asset Securities Corp. Series 2002-22H Class 1A 6.960% due 11/25/32 99 100 Series 2004-12H Class 1A 6.000% due 05/25/34 416 415
Multistrategy Bond Fund 123 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2004-21X Class 1A3 4.440% due 12/25/34 3,410 3,365 Series 2005-6 Class B2 5.344% due 05/25/35 283 269 Thornburg Mortgage Securities Trust (E) Series 2003-2 Class A1 5.690% due 04/25/43 1,058 1,059 Series 2006-5 Class A1 5.440% due 08/25/36 3,797 3,791 Series 2006-6 Class A1 5.430% due 12/25/36 1,289 1,288 Tobacco Settlement Authority of Iowa 6.500% due 06/01/23 395 391 Wachovia Bank Commercial Mortgage Trust Series 2005-C16 Class A2 4.380% due 10/15/41 3,330 3,238 Series 2005-C21 Class A4 5.196% due 10/15/44 4,000 3,933 Series 2006-C28 Class A2 5.500% due 10/15/48 1,510 1,512 Series 2006-WL7 Class A1 (E)(p) 5.410% due 09/15/21 5,753 5,753 Wamu Mortgage Pass-Through Certificates (E) Series 2005-AR1 Class A1B3 5.670% due 12/25/45 1,699 1,705 Washington Mutual Alternative Mortgage Pass-Through Certificates Series 2005-4 Class CB11 5.500% due 06/25/35 680 662 Series 2005-6 Class 3CB 5.500% due 08/25/35 1,596 1,559 Series 2005-9 Class 3CB 5.500% due 10/25/20 693 689 Series 2006-2 Class 2CB 6.500% due 03/25/36 944 954 Series 2006-5 Class 2CB3 6.000% due 07/25/36 1,445 1,459 Series 2006-5 Class LB1 6.000% due 07/25/36 686 678 Series 2006-AR2 Class A1A (E) 5.698% due 04/25/46 1,856 1,865 Series 2006-AR5 Class 3A (E) 5.698% due 07/25/46 1,059 1,063 Series 2006-AR7 Class A1A (E) 5.803% due 09/25/46 1,754 1,761 Series 2006-AR8 Class 2A (E) 5.608% due 09/25/46 3,842 3,856 Series 2006-AR9 Class 2A (E) 5.667% due 11/25/46 3,973 3,973
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Washington Mutual, Inc. Series 2002-AR9 Class 1A (E) 6.158% due 08/25/42 642 642 Series 2003-S10 Class A2 5.000% due 10/25/18 666 654 Series 2003-S9 Class A2 (E) 5.900% due 10/25/33 2,236 2,246 Series 2004-AR1 Class A2C (E) 5.635% due 07/25/44 37 37 Series 2004-AR1 Class A3 (E) 5.635% due 10/25/44 87 87 Series 2004-AR1 Class X Interest Only STRIP 0.547% due 07/25/44 8,428 154 0.376% due 10/25/44 11,359 208 Series 2004-AR8 Class X Interest Only STRIP 0.548% due 06/25/44 4,833 87 Series 2004-CB3 Class 1A 6.000% due 10/25/34 342 342 Series 2004-CB3 Class 4A 6.000% due 10/25/19 757 762 Series 2005-AR1 Class 1A1 4.838% due 10/25/35 1,770 1,744 Series 2005-AR1 Class A1A1 (E) 5.640% due 10/25/45 1,249 1,251 5.580% due 11/25/45 2,237 2,243 Series 2005-AR1 Class A1B1 (E) 5.640% due 08/25/45 437 438 5.610% due 10/25/45 899 900 5.600% due 11/25/45 888 890 5.570% due 12/25/45 1,506 1,508 Series 2005-AR6 Class B3 (E) 6.010% due 04/25/45 1,364 1,363 Series 2005-AR8 Class 2A1A (E) 5.610% due 07/25/45 1,309 1,313 Series 2005-AR8 Class 2AB3 (E) 5.710% due 07/25/45 986 989 Series 2006-AR1 Class 1A (E) 5.638% due 10/25/46 2,821 2,830 5.703% due 12/25/46 1,863 1,866 5.623% due 01/25/47 978 978 Series 2006-AR1 Class 1A1 5.970% due 09/25/36 1,523 1,531 Series 2006-AR1 Class 1A4 5.666% due 11/25/36 2,912 2,907 Series 2006-AR1 Class 3A1A (E) 5.803% due 09/25/46 972 975
124 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series 2006-AR4 Class 1A1B (E) 5.767% due 05/25/46 1,884 1,887 Series 2006-AR7 Class 1A (E) 5.738% due 07/25/46 825 826 Series 2006-AR8 Class 1A5 5.928% due 08/25/46 301 303 Series 2006-AR8 Class 2A3 (E) 6.160% due 08/25/46 200 201 Wells Fargo Mortgage Backed Securities Trust Series 2004-T Class A1 (E) 4.382% due 09/25/34 594 595 Series 2005-12 Class 1A7 5.500% due 11/25/35 1,582 1,535 Series 2005-14 Class 2A1 5.500% due 12/25/35 2,385 2,327 Series 2005-17 Class 1A1 5.500% due 01/25/36 2,122 2,070 Series 2005-17 Class 1A2 5.500% due 01/25/36 1,233 1,197 Series 2006-1 Class A3 5.000% due 03/25/21 1,486 1,445 Series 2006-2 Class 2A3 5.500% due 03/25/36 2,904 2,890 Series 2006-2 Class 3A1 5.750% due 03/25/36 1,665 1,641 Series 2006-4 Class 1A8 5.750% due 04/25/36 924 931 Series 2006-4 Class 2A3 5.750% due 04/25/36 692 678 Series 2006-AR1 Class 1A2 (E) 6.045% due 09/25/36 880 882 Series 2006-AR1 Class 2A2 5.737% due 11/25/36 1,103 1,099 Series 2006-AR1 Class 2A4 (E) 6.119% due 10/25/36 1,259 1,266 Series 2006-AR1 Class 5A1 (E) 5.605% due 07/25/36 1,386 1,383 Series 2006-AR1 Class A1 5.730% due 12/25/36 632 627 Series 2006-AR1 Class A7 5.537% due 08/25/36 1,676 1,662 Series 2006-AR2 Class 2A1 4.950% due 03/25/36 1,912 1,884 Series 2006-AR4 Class 1A1 (E) 5.865% due 04/25/36 2,000 1,992 Series 2006-AR4 Class 2A1 (E) 5.787% due 04/25/36 3,131 3,121 Series 2006-AR5 Class 2A1 (E) 5.536% due 04/25/36 504 502
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Zuni Mortgage Loan Trust (E) Series 2006-OA1 Class A1 5.450% due 08/25/36 1,708 1,706 ------------ 1,196,823 ------------ Municipal Bonds - 0.3% California State University Revenue Bonds, weekly demand (u) 5.000% due 11/01/30 435 460 New Jersey Economic Development Authority Revenue Bonds, weekly demand 5.750% due 06/15/34 745 790 New York State Urban Development Corp. Revenue Bonds, weekly demand (u) 5.250% due 03/15/34 540 582 State of California General Obligation Unlimited, weekly demand 5.000% due 02/01/33 370 384 State of Illinois General Obligation Unlimited 5.100% due 06/01/33 480 453 State of Oregon General Obligation Unlimited 5.892% due 06/01/27 555 567 State of Texas General Obligation Unlimited, weekly demand 4.750% due 04/01/35 450 456 Tobacco Settlement Financing Corp. Revenue Bonds, weekly demand 5.750% due 06/01/32 4,060 4,333 West Virginia Economic Development Authority Revenue Bonds (u) 5.370% due 07/01/20 200 196 ------------ 8,221 ------------ Non-US Bonds - 0.9% Argentina Government International Bond Series dis 5.830% due 12/31/33 ARS 1,510 750 Bombardier, Inc. (p) 7.250% due 11/15/16 EUR 375 503 Brazilian Government International Bond 12.500% due 01/05/16 BRL 2,247 1,206 Colombia Government International Bond 12.000% due 10/22/15 COP 4,198,000 2,182
Multistrategy Bond Fund 125 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Deutsche Bundesrepublik Series 01 5.000% due 07/04/11 EUR 690 934 Federative Republic of Brazil 12.500% due 01/05/22 BRL 5,946 3,696 Mexican Bonds 9.500% due 12/18/14 MXN 11,335 1,125 Series M 10 8.000% due 12/17/15 MXN 9,218 841 Series M 20 10.000% due 12/05/24 MXN 17,000 1,836 Series MI10 8.000% due 12/19/13 MXN 17,000 1,553 Norway Government Bond 6.500% due 05/15/13 NOK 10,282 1,814 Poland Government Bond Series 1015 6.250% due 10/24/15 PLN 1,190 428 Province of Ontario Canada 4.500% due 03/08/15 CAD 890 760 Province of Quebec Canada 5.000% due 12/01/15 CAD 1,529 1,344 5.000% due 12/01/38 CAD 800 705 Quebec Residual Zero Coupon STRIP due 12/01/36 CAD 2,790 580 Queensland Treasury Corp. Series 15G 6.000% due 10/14/15 AUD 1,427 1,097 United Kingdom Gilt 5.750% due 12/07/09 GBP 1,600 3,170 8.000% due 09/27/13 GBP 1,050 2,389 ------------ 26,913 ------------ United States Government Agencies - 4.3% Fannie Mae 4.200% due 03/24/08 11,000 10,862 4.150% due 09/10/09 12,000 11,725 3.875% due 02/15/10 3,405 3,293 4.750% due 04/20/10 7,620 7,545 4.375% due 06/21/10 8,000 7,826 5.050% due 02/07/11 6,600 6,590 Zero coupon due 10/09/19 2,155 1,057 Federal Home Loan Bank 4.800% due 05/02/08 18,000 17,908 Series 577 4.500% due 09/26/08 16,900 16,729 Federal Home Loan Bank System 5.375% due 08/19/11 975 987 5.310% due 12/28/12 5,500 5,564 Series IY08 3.400% due 03/18/08 6,000 5,880
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Series VX10 4.200% due 05/07/10 9,000 8,749 Financing Corp. Principal Only STRIP Series 1 Zero coupon due 05/11/16 400 249 Series 12P Zero coupon due 12/06/18 1,770 955 Series 13 Zero coupon due 12/27/16 1,410 848 Series 13P Zero coupon due 12/27/18 3,800 2,043 Series 16P Zero coupon due 04/05/19 1,445 765 Series 19 Zero coupon due 06/06/16 1,185 734 Series 3P Zero coupon due 11/30/17 885 506 Series 5P Zero coupon due 02/08/18 365 207 Series 8P Zero coupon due 08/03/18 3,205 1,764 Series 9P Zero coupon due 10/06/17 1,605 926 Series C-P Zero coupon due 11/30/17 1,820 1,041 Series E-P Zero coupon due 11/02/18 855 464 Freddie Mac 3.450% due 03/12/08 6,000 5,884 4.750% due 01/19/16 155 151 Series * 2.750% due 03/15/08 1,060 1,031 ------------ 122,283 ------------ United States Government Treasuries - 9.6% United States Treasury Principal Only STRIP Zero coupon due 08/15/26 7,000 2,632 Zero coupon due 11/15/26 100 37 United States Treasury Inflation Indexed Bonds 2.375% due 04/15/11 3,137 3,129 3.375% due 01/15/12 6,435 6,724 3.000% due 07/15/12 1,239 1,277 1.875% due 07/15/13 987 957 2.000% due 01/15/14 3,065 2,978 2.000% due 07/15/14 7,376 7,173
126 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- 1.875% due 07/15/15 3,833 3,682 2.000% due 01/15/16 -- -- 2.500% due 07/15/16 7,075 7,141 2.375% due 01/15/25 4,276 4,249 2.000% due 01/15/26 7,696 7,217 2.000% due 01/15/27 1,019 1,014 3.625% due 04/15/28 623 750 United States Treasury Notes 4.625% due 02/29/08 6,000 5,973 4.875% due 10/31/08 21,800 21,765 4.750% due 12/31/08 26,540 26,453 4.875% due 08/15/09 20,000 19,995 4.375% due 12/15/10 7,920 7,796 4.500% due 09/30/11 2,000 1,973 4.625% due 10/31/11 250 248 4.625% due 12/31/11 7,945 7,875 3.875% due 02/15/13 7,100 6,757 Zero coupon due 11/15/13 1,855 1,343 4.250% due 08/15/15 8,405 8,069 4.875% due 08/15/16 170 171 4.625% due 11/15/16 11,700 11,519 8.750% due 05/15/17 445 583 8.125% due 08/15/19 13,425 17,366 8.125% due 08/15/21 1,275 1,682 Zero coupon due 11/15/21 28,505 13,535 7.625% due 02/15/25 2,500 3,265 6.000% due 02/15/26 26,835 30,020 6.375% due 08/15/27 7,675 9,003 6.125% due 08/15/29 13,500 15,548 4.500% due 02/15/36 14,790 13,824 ------------ 273,723 ------------ TOTAL LONG-TERM INVESTMENTS (cost $2,453,590) 2,456,940 ------------ COMMON STOCKS - 0.5% Financial Services - 0.5% Emerging Market Local Currency Fund (AE) 562,898 6,326 Pacific Investment Management Co. Series High Yield Portfolio Institutional 862,499 7,426 ------------ 13,752 ------------ TOTAL COMMON STOCKS (cost $13,808) 13,752 ------------ PREFERRED STOCKS - 0.2% Financial Services - 0.2% DG Funding Trust (E)(f)(A) 361 3,800 Harborview NIM Corp. (AE)(p) 18,500 1,202 ------------ 5,002 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Producer Durables - 0.0% Nexen, Inc. 12,590 319 ------------ TOTAL PREFERRED STOCKS (cost $5,326) 5,321 ------------ WARRANTS & RIGHTS - 0.0% Consumer Discretionary - 0.0% Travelcenters of America, Inc. 2009 Warrants 30 2 ------------ Materials and Processing - 0.0% Solutia, Inc. (p) 2009 Warrants 850 -- ------------ Miscellaneous - 0.0% Mexico Government International Bond Value Recovery Rights 3,950,000 52 ------------ TOTAL WARRANTS & RIGHTS (cost $84) 54 ------------ OPTIONS PURCHASED - 0.1% Eurodollar Futures Mar 2007 92.25 Put (310) 71,494 2 Jun 2007 91.25 Put (959) 218,772 6 Jun 2007 94.25 Put (978) 230,441 12 Jun 2007 94.50 Put (130) 30,713 7 Sep 2007 90.50 Put (160) 36,200 1 Sep 2007 90.75 Put (311) 70,558 2 Sep 2007 91.00 Put (85) 19,338 1 Sep 2007 91.25 Put (284) 64,788 2 Sep 2007 94.75 Put (401) 94,987 155 Dec 2007 91.25 Put (608) 138,700 4 Mar 2008 91.75 Put (1,500) 344,063 9 Mar 2008 92.25 Put (355) 81,872 3 Swaptions EUR Three Month LIBOR/ EUR 3.960% Jul 2007 0.00 Call (2) 19,550 12 EUR Six Month LIBOR/ EUR 3.960% Jul 2007 0.00 Call (1) 19,550 9
Multistrategy Bond Fund 127 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- EUR Six Month LIBOR/ EUR 4.100% Jul 2007 0.00 Call (1) 14,337 6 GBP Three Month LIBOR/ GBP 5.080% Jun 2007 0.00 Call (1) 2,947 -- GBP Six Month LIBOR/ GBP 5.080% Jun 2007 0.00 Call (1) 4,519 -- USD Three Month LIBOR/ USD 5.170% Feb 2007 0.00 Call (1) 14,100 -- USD Three Month LIBOR/ USD 5.080% Apr 2007 0.00 Call (1) 9,200 11 USD Three Month LIBOR/ USD 5.200% May 2007 0.00 Call (2) 63,100 144 USD Three Month LIBOR/ USD 5.250% Jun 2007 0.00 Call (2) 33,000 93 USD Three Month LIBOR/ USD 5.500% Jun 2007 0.00 Call (1) 26,000 162 USD Three Month LIBOR/ USD 4.750% Jul 2007 0.00 Call (1) 32,000 181 USD Three Month LIBOR/ USD 4.900% Jul 2007 0.00 Call (1) 37,000 260 USD Three Month LIBOR/ USD 5.250% Jul 2007 0.00 Call (3) 72,000 277 USD Three Month LIBOR/ USD 5.370% Jul 2007 0.00 Call (1) 20,200 106 USD Six month LIBOR/ USD 4.850% Jul 2007 0.00 Call (1) 30,000 3 USD Three Month LIBOR/ USD 4.700% Aug 2007 0.00 Call (1) 18,000 106 USD Three Month LIBOR/ USD 4.800% Aug 2007 0.00 Call (1) 16,000 136 USD Three Month LIBOR/ USD 4.900% Aug 2007 0.00 Call (2) 39,000 189 USD Six Month LIBOR/ USD 4.900% Oct 2007 0.00 Call (1) 21,000 149
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- USD Three Month LIBOR/ USD 5.000% Feb 2008 0.00 Call (1) 47,700 281 90-Day Short Sterling Futures Mar 2007 94.63 Put (164) 38,111 -- ------------ TOTAL OPTIONS PURCHASED (cost $2,644) 2,329 ------------ SHORT-TERM INVESTMENTS - 21.9% American General Finance Corp. (E)(c) Series MTNG 5.406% due 03/23/07 300 300 AT&T Wireless Services, Inc. 7.500% due 05/01/07 3,480 3,495 Bank of America Corp. (z) 5.230% due 03/20/07 13,300 13,209 BNP Paribas (z) 5.293% due 07/03/07 5,800 5,797 Caesars Entertainment, Inc. (c) 9.375% due 02/15/07 980 980 Capital Auto Receivables Asset Trust (E) Series 2003-3 Class A3B 5.400% due 01/15/08 267 267 Caterpillar Financial Services Corp. Series MTNF 5.445% due 08/20/07 (E) 470 470 3.625% due 11/15/07 160 158 CC Funding Trust I (c) 6.900% due 02/16/07 685 685 CIT Group, Inc. 3.650% due 11/23/07 260 257 Citigroup Global Markets Deutschland for Tyumen Oil Co. Series REGS 11.000% due 11/06/07 1,290 1,336 Citigroup, Inc. 4.200% due 12/20/07 3,600 3,562 Clorox Co. (E) 5.485% due 12/14/07 705 706 Comcast Cable Communications LLC 8.375% due 05/01/07 110 111 Dexia Delaware LLC (c)(z) 5.260% due 02/01/07 2,600 2,600 Donohue Forest Products 7.625% due 05/15/07 665 665 Dresdner Bank AG (A) Zero Coupon due 01/24/08 2,235 2,113
128 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- El Paso Corp. 6.950% due 12/15/07 2,600 2,616 Enterprise Products Operating, LP Series B 4.000% due 10/15/07 700 692 FedEx Corp. (c) 2.650% due 04/01/07 220 219 Ford Motor Credit Co. (E) 5.560% due 03/13/07 (c) 2,250 2,233 6.193% due 09/28/07 1,400 1,400 France Treasury Bills BTF Zero Coupon due 04/26/07 1,400 1,809 General Electric Capital Corp. 5.240% due 02/09/07 (c)(z) 1,400 1,398 5.200% due 07/30/07 (z) 6,800 6,622 Series MTNA (E) 5.445% due 01/15/08 700 701 Harrah's Operating Co., Inc. 7.125% due 06/01/07 1,055 1,059 Hilton Hotels Corp. 7.950% due 04/15/07 330 331 HSBC Finance Corp. (E) 5.400% due 10/04/07 2,200 2,202 Hyatt Equities LLC (p) 6.875% due 06/15/07 435 436 International Bank for Reconstruction & Development Zero Coupon due 08/20/07 950 628 International Lease Finance Corp. 3.750% due 08/01/07 115 114 JPMorgan Chase & Co. (c) 5.350% due 03/01/07 160 160 Mandalay Resort Group Series B 10.250% due 08/01/07 2,830 2,883 Marsh & McLennan Cos., Inc. 5.375% due 03/15/07 (c) 1,480 1,480 5.500% due 07/13/07 (E) 630 630 MGM Mirage 9.750% due 06/01/07 2,020 2,043 Mirage Resorts, Inc. 6.750% due 08/01/07 600 602 Motorola, Inc. 4.608% due 11/16/07 393 390 Netherlands Government Bond Series 1 (c) 5.750% due 02/15/07 490 639 Norfolk Southern Corp. 7.350% due 05/15/07 320 322 Panhandle Eastern Pipe Line Series B (c) 2.750% due 03/15/07 125 125 Pepco Holdings, Inc. 5.500% due 08/15/07 1,070 1,070
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- Plantinum Underwriters Financial, Inc. Series B 6.371% due 11/16/07 405 402 Rabobank USA Financial Corp. (c)(z) 5.280% due 02/01/07 18,800 18,800 Reynolds American, Inc. Series * 6.500% due 06/01/07 450 450 Russell Investment Company Money Market Fund 415,784,000 415,784 Sempra Energy 4.621% due 05/17/07 777 775 Societe Generale NA (z) 5.225% due 03/01/07 (c) 10,000 9,959 5.225% due 05/10/07 10,800 10,647 St. Paul Travelers Cos., Inc. (The) 5.010% due 08/16/07 1,350 1,346 Starwood Hotels & Resorts Worldwide, Inc. 7.375% due 05/01/07 65 65 TELUS Corp. 7.500% due 06/01/07 1,925 1,936 Total SA (c)(z) 5.260% due 02/01/07 18,800 18,800 UBS Financial Del LLC (z) 5.225% due 03/08/07 (c) 2,700 2,686 5.185% due 04/02/07 17,400 17,104 5.225% due 06/01/07 700 688 Union Pacific Corp. Series MTNE 6.790% due 11/09/07 110 111 United States Treasury Bills (z) 4.837% due 02/15/07 (c) 40 40 4.843% due 02/15/07 (c) 30 30 4.852% due 02/15/07 (c) 120 120 4.853% due 02/15/07 (c) 15 15 4.887% due 02/15/07 (c) 25 25 4.888% due 02/15/07 (c) 350 349 4.895% due 02/15/07 (c) 35 35 4.906% due 02/15/07 (c) 5 5 4.938% due 02/15/07 (c) 15 15 4.948% due 02/15/07 (c) 70 70
Multistrategy Bond Fund 129 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------- 4.960% due 02/15/07 (c) 100 100 4.987% due 02/15/07 (c) 100 100 5.007% due 02/15/07 (c) 200 199 5.018% due 02/15/07 (c) 110 110 5.131% due 02/15/07 (c) 250 249 5.036% due 03/01/07 (c) 1,725 1,718 2.214% due 03/15/07 (c) 200 198 4.921% due 03/15/07 (c) 750 746 4.927% due 03/15/07 (c) 500 497 4.932% due 03/15/07 (c) 1,895 1,884 4.936% due 03/15/07 (c) 300 298 4.939% due 03/15/07 (c) 30 30 4.969% due 03/15/07 (c) 500 497 5.031% due 03/15/07 (c) 250 249 5.042% due 03/15/07 (c) 50 50 5.110% due 07/12/07 650 636 United States Treasury Inflation Indexed Bonds 3.625% due 01/15/08 886 894 United States Treasury Notes 3.125% due 05/15/07 21,250 21,131 4.375% due 12/31/07 23,470 23,327 WellPoint, Inc. 3.750% due 12/14/07 270 266 Westpac Banking Corp. (c) 5.250% due 02/06/07 1,400 1,399 Wisconsin Electric Power Co. 3.500% due 12/01/07 145 143 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $624,675) 624,494 ------------ TOTAL INVESTMENTS - 108.8% (identified cost $3,100,127) 3,102,890 OTHER ASSETS AND LIABILITIES, NET - (8.8%) (252,062) ------------ NET ASSETS - 100.0% 2,850,828 ============
See accompanying notes which are an integral part of the schedules of investments. 130 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Australian 3 Year Bond (Australia) expiration date 03/07 (101) 20,091 (19) Australian 10 Year Bond (Australia) expiration date 03/07 (54) 29,939 (98) Euribor Futures expiration date 09/07 (50) 15,615 (58) expiration date 12/07 (50) 15,612 (37) expiration date 03/08 (2) 625 (2) expiration date 06/08 (1) 312 (1) Euro-Bund Futures (Germany) expiration date 03/07 (63) 9,412 (368) Eurodollar Futures (CME) expiration date 03/07 (257) 60,800 (35) expiration date 06/07 (182) 43,068 (114) expiration date 09/07 (2,361) 559,232 (2,041) expiration date 12/07 (2,277) 539,848 (1,587) expiration date 03/08 (837) 198,557 (594) expiration date 06/08 (127) 30,139 (25) expiration date 09/08 (127) 30,147 (25) expiration date 12/08 (239) 56,736 (57) Euro-Schatz Bond Futures expiration date 03/07 (91) 12,225 (79) Euroyen Futures expiration date 09/07 (55) 11,306 18 expiration date 12/07 (63) 12,938 19 Japanese 10 Year Bond (Japan) expiration date 03/07 (3) 3,336 (14) LIBOR Futures expiration date 06/07 (22) 5,088 (31) expiration date 09/07 (37) 8,557 (52) expiration date 12/07 (59) 13,649 (80) expiration date 03/08 (15) 3,471 (21) expiration date 06/08 (31) 7,175 (17) expiration date 09/08 (17) 3,936 (24) United States Treasury Bonds expiration date 03/07 (278) 30,615 (589) United States Treasury 2 Year Notes expiration date 03/07 (501) 102,000 (411) United States Treasury 5 Year Notes expiration date 03/07 (1,162) 121,465 (951) United States Treasury 10 Year Notes expiration date 03/07 (1,715) 183,076 (2,427)
- ------------------------------------------------------------------------------------
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ Short Positions Euro-Bobl Futures (Germany) expiration date 03/07 (337) 47,479 860 Long Gilt Bond (UK) expiration date 03/07 (8) 1,664 52 United States Treasury Bonds expiration date 03/07 (4) 441 14 United States Treasury 2 Year Notes expiration date 03/07 (63) 12,826 50 United States Treasury 5 Year Notes expiration date 03/07 (280) 29,269 371 United States Treasury 10 Year Notes expiration date 03/07 (437) 46,650 770 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (7,603) ===============
See accompanying notes which are an integral part of the schedules of investments. Multistrategy Bond Fund 131 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Eurodollar Futures Mar 2007 94.75 Put (22) 5,211 (7) Mar 2007 95.25 Put (24) 5,715 (37) 90 Day Short Sterling Futures Mar 2007 94.75 Call (164) 38,162 -- Swaptions (Fund Receives/Fund Pays) EUR Three Month LIBOR/ EUR 4.100% Jul 2007 0.00 Call (2) 7,820 (45) EUR Six Month LIBOR/ EUR 4.100% Jul 2007 0.00 Call (1) 7,820 (18) EUR Six Month LIBOR/ EUR 4.230% Jul 2007 0.00 Call (1) 6,517 (16) GBP Three Month LIBOR/ GBP 4.850% Jun 2007 0.00 Call (1) 786 -- GBP Six Month LIBOR/ GBP 4.850% Jun 2007 0.00 Call (1) 1,375 (1) USD Three Month LIBOR/ USD 5.240% Feb 2007 0.00 Call (1) 6,100 (3) USD Three Month LIBOR/ USD 5.220% Apr 2007 0.00 Call (1) 4,000 (22) USD Three Month LIBOR/ USD 5.300% May 2007 0.00 Call (1) 14,000 (120) USD Three Month LIBOR/ USD 5.315% May 2007 0.00 Call (1) 13,600 (115) USD Three Month LIBOR/ USD 5.325% Jun 2007 0.00 Call (1) 2,000 (17) USD Three Month LIBOR/ USD 5.340% Jun 2007 0.00 Call (1) 12,000 (126) USD Three Month LIBOR/ USD 5.600% Jun 2007 0.00 Call (1) 11,000 (194) USD Three Month LIBOR/ USD 4.750% Jul 2007 0.00 Call (1) 7,000 (8) USD Three Month LIBOR/ USD 5.000% Jul 2007 0.00 Call (1) 16,000 (53)
- ------------------------------------------------------------------------------------
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ USD Three Month LIBOR/ USD 5.370% Jul 2007 0.00 Call (3) 32,000 (371) USD Three Month LIBOR/ USD 5.500% Jul 2007 0.00 Call (1) 6,600 (114) USD Six Month LIBOR/ USD 4.950% Jul 2007 0.00 Call (1) 6,700 (99) USD Three Month LIBOR/ USD 4.850% Aug 2007 0.00 Call (1) 3,000 (8) USD Three Month LIBOR/ USD 4.900% Aug 2007 0.00 Call (2) 12,000 (36) USD Three Month LIBOR/ USD 5.000% Aug 2007 0.00 Call (1) 3,000 (14) USD Six Month LIBOR/ USD 5.010% Oct 2007 0.00 Call (1) 9,000 (52) USD Three Month LIBOR/ USD 5.100% Feb 2008 0.00 Call (1) 21,000 (190) United States Treasury Notes 2 Year Futures Feb 2007 101.75 Put (221) 44,974 (45) Feb 2007 102.00 Call (1,087) 221,748 (544) United States Treasury Notes 5 Year Futures May 2007 106.00 Call (886) 93,916 (138) United States Treasury Notes 10 Year Futures Feb 2007 106.00 Call (47) 4,982 (42) Feb 2007 107.00 Put (45) 4,815 (25) Feb 2007 108.00 Call (47) 5,076 (3) Feb 2007 109.00 Call (45) 4,905 (1) --------------- Total Liability for Options Written (premiums received $2,569) (2,464) ===============
See accompanying notes which are an integral part of the schedules of investments. 132 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 1,132 AUD 1,449 02/02/07 (7) USD 1,186 AUD 1,535 02/02/07 6 USD 2,992 AUD 3,781 03/22/07 (60) USD 6,606 AUD 8,459 03/22/07 (46) USD 6,630 AUD 8,459 03/22/07 (70) USD 5,745 BRL 12,259 02/02/07 27 USD 838 BRL 1,848 02/05/07 31 USD 1,619 CAD 1,911 02/02/07 5 USD 177 CAD 209 02/22/07 -- USD 267 CAD 315 02/22/07 1 USD 407 CAD 466 03/22/07 (10) USD 2,867 CAD 3,341 03/22/07 (24) USD 2,844 CHF 3,392 03/22/07 (104) USD 469 CNY 3,629 03/19/07 1 USD 200 CNY 1,544 03/20/07 -- USD 10,200 CNY 78,356 04/13/07 (3) USD 133 EUR 103 02/02/07 1 USD 162 EUR 125 02/02/07 1 USD 512 EUR 390 02/02/07 (3) USD 556 EUR 435 02/02/07 11 USD 734 EUR 566 02/02/07 4 USD 2,058 EUR 1,587 02/27/07 13 USD 2,556 EUR 1,969 03/22/07 17 USD 3,177 EUR 2,446 03/22/07 18 USD 7,896 EUR 5,946 03/22/07 (128) USD 9,196 EUR 6,928 03/22/07 (146) USD 1,277 EUR 1,000 03/23/07 30 USD 1,440 EUR 1,120 03/23/07 23 USD 2,496 GBP 1,272 02/02/07 3 USD 137 GBP 70 02/22/07 1 USD 236 GBP 120 02/22/07 -- USD 2,844 GBP 1,459 03/22/07 22 USD 2,992 GBP 1,505 03/22/07 (35) USD 8,791 GBP 4,490 03/22/07 30 USD 14,334 GBP 7,292 03/22/07 (9) USD 218 JPY 26,532 01/31/07 2 USD 304 JPY 35,375 02/02/07 (11) USD 475 JPY 55,490 02/02/07 (15) USD 475 JPY 55,490 02/02/07 (16) USD 510 JPY 60,670 02/02/07 (7) USD 511 JPY 58,935 02/02/07 (22) USD 539 JPY 63,837 02/02/07 (9) USD 599 JPY 70,080 02/02/07 (18) USD 628 JPY 74,990 02/02/07 (7) USD 660 JPY 76,353 02/02/07 (27)
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 732 JPY 84,315 02/02/07 (33) USD 2,159 JPY 249,448 02/02/07 (92) USD 2,982 JPY 343,716 02/02/07 (133) USD 11,253 JPY 1,312,577 02/15/07 (355) USD 6,079 JPY 693,000 03/06/07 (310) USD 134 JPY 16,159 03/09/07 1 USD 815 JPY 98,883 03/09/07 8 USD 1,133 JPY 137,217 03/09/07 9 USD 1,233 JPY 149,571 03/09/07 13 USD 5,833 JPY 679,000 03/20/07 (170) USD 210 JPY 24,260 03/22/07 (8) USD 2,849 JPY 336,752 03/22/07 (40) USD 8,543 JPY 1,004,682 03/22/07 (161) USD 390 NOK 2,450 02/02/07 3 USD 450 NOK 2,772 02/02/07 (5) USD 576 NOK 3,540 02/02/07 (9) USD 2,844 NOK 17,435 03/22/07 (45) USD 2,848 NOK 18,053 03/22/07 51 USD 2,992 NOK 19,119 03/22/07 78 USD 5,479 NOK 33,506 03/22/07 (100) USD 594 NZD 862 02/02/07 -- USD 1,736 NZD 2,518 03/22/07 (6) USD 2,993 NZD 4,315 03/22/07 (29) USD 3,357 NZD 4,889 03/22/07 2 USD 3,622 NZD 5,263 03/22/07 (6) USD 47 PHP 2,284 03/30/07 -- USD 531 PLN 1,608 02/02/07 6 USD 1,367 SEK 9,783 02/02/07 41 USD 2,841 SEK 19,567 03/22/07 (17) USD 2,844 SEK 19,411 03/22/07 (43) USD 2,992 SEK 20,819 03/22/07 12 USD 5,695 SEK 39,467 03/22/07 -- USD 11,100 SEK 75,240 03/22/07 (242) USD 258 SGD 395 04/30/07 -- USD 243 TWD 7,871 02/22/07 (3) AUD 2,984 USD 2,292 02/02/07 (25) AUD 1,535 USD 1,185 03/09/07 (6) AUD 3,595 USD 2,849 03/22/07 61 AUD 3,644 USD 2,848 03/22/07 22 AUD 3,663 USD 2,867 03/22/07 26 AUD 7,764 USD 5,986 03/22/07 (36) BRL 12,259 USD 5,568 02/02/07 (201) BRL 2,167 USD 1,000 04/30/07 (7) BRL 12,259 USD 5,665 05/07/07 (26) CAD 314 USD 266 02/01/07 (1)
See accompanying notes which are an integral part of the schedules of investments. Multistrategy Bond Fund 133 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- CAD 209 USD 177 02/02/07 -- CAD 1,911 USD 1,702 02/02/07 78 CAD 1,196 USD 1,018 02/22/07 1 CAD 1,911 USD 1,620 03/09/07 (5) CAD 3,324 USD 2,849 03/22/07 20 CAD 3,534 USD 2,992 03/22/07 (16) CAD 6,684 USD 5,695 03/22/07 7 CAD 7,070 USD 5,986 03/22/07 (30) CHF 3,405 USD 2,844 03/22/07 94 CHF 3,454 USD 2,841 03/22/07 52 CHF 3,696 USD 2,992 03/22/07 7 CHF 3,728 USD 2,992 03/22/07 (19) CHF 7,102 USD 5,733 03/22/07 (3) CHF 9,589 USD 8,042 03/22/07 298 CNY 78,356 USD 10,195 04/13/07 (1) EUR 161 USD 207 02/02/07 (3) EUR 405 USD 520 02/02/07 (8) EUR 515 USD 660 02/02/07 (11) EUR 560 USD 724 02/02/07 (6) EUR 375 USD 485 02/27/07 (5) EUR 4,056 USD 5,267 02/27/07 (26) EUR 4,936 USD 6,604 03/06/07 161 EUR 103 USD 134 03/09/07 (1) EUR 125 USD 162 03/09/07 (1) EUR 566 USD 735 03/09/07 (4) EUR 2,147 USD 2,844 03/22/07 40 EUR 2,204 USD 2,867 03/22/07 (12) EUR 2,213 USD 2,865 03/22/07 (25) EUR 2,291 USD 2,992 03/22/07 (1) EUR 2,312 USD 2,993 03/22/07 (28) EUR 2,429 USD 3,170 03/22/07 (3) EUR 4,107 USD 5,373 03/22/07 8 EUR 4,615 USD 5,984 03/22/07 (45) EUR 12,501 USD 16,622 03/22/07 292 GBP 1,272 USD 2,420 02/02/07 (79) GBP 66 USD 128 02/22/07 (2) GBP 1,272 USD 2,496 03/09/07 (3) GBP 1,449 USD 2,849 03/22/07 2 GBP 1,460 USD 2,841 03/22/07 (28) GBP 1,481 USD 2,867 03/22/07 (42) JPY 15,254 USD 125 02/01/07 (1) JPY 16,159 USD 133 02/02/07 (1) JPY 53,290 USD 450 02/02/07 9 JPY 55,490 USD 483 02/02/07 23 JPY 60,194 USD 512 02/02/07 13
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- JPY 60,700 USD 524 02/02/07 21 JPY 62,078 USD 528 02/02/07 13 JPY 108,355 USD 930 02/02/07 32 JPY 110,980 USD 954 02/02/07 35 JPY 116,035 USD 981 02/02/07 19 JPY 120,005 USD 1,049 02/02/07 54 JPY 137,217 USD 1,128 02/02/07 (9) JPY 149,571 USD 1,227 02/02/07 (13) JPY 178,625 USD 1,465 02/02/07 (15) JPY 102,117 USD 874 02/15/07 26 JPY 1,342,192 USD 11,080 02/15/07 (65) JPY 76,623 USD 633 03/09/07 (5) JPY 328,601 USD 2,844 03/22/07 103 JPY 328,789 USD 2,844 03/22/07 101 JPY 331,846 USD 2,841 03/22/07 73 JPY 361,392 USD 2,992 03/22/07 (23) JPY 685,202 USD 5,733 03/22/07 17 JPY 1,088,758 USD 8,979 03/22/07 (104) MXN 38,318 USD 3,456 04/12/07 (13) NOK 8,762 USD 1,363 02/02/07 (42) NOK 2,450 USD 391 03/09/07 (3) NOK 18,393 USD 2,867 03/22/07 (86) NZD 862 USD 574 02/02/07 (19) NZD 13 USD 9 02/26/07 -- NZD 862 USD 592 03/09/07 -- NZD 3,669 USD 2,513 03/22/07 (8) NZD 4,062 USD 2,849 03/22/07 59 PLN 1,608 USD 532 02/02/07 (5) PLN 1,608 USD 531 03/09/07 (7) SEK 9,783 USD 1,363 02/02/07 (45) SEK 20,045 USD 2,867 03/22/07 (26) SEK 20,136 USD 2,867 03/22/07 (39) SEK 21,018 USD 2,992 03/22/07 (41) SEK 57,942 USD 8,546 03/22/07 185 -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (1,440) ==============
See accompanying notes which are an integral part of the schedules of investments. 134 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INDEX SWAP CONTRACTS - ------------------------------------------------------------------------------------------------------------------------------ UNREALIZED NOTIONAL APPRECIATION FUND RECEIVES COUNTER AMOUNT FUND PAYS TERMINATION (DEPRECIATION) UNDERLYING SECURITY PARTY $ FLOATING RATE DATE $ - ------------------------------ ---------------- --------- ------------------------------- ----------- -------------- Lehman Brothers 1 Month USD LIBOR CMBS Index - AAA Goldman Sachs 6,830 plus 0.050% 02/01/07 34 Goldman Sachs Turkish Overnight Index Tuibon Total Return Citibank 14,958 plus 0.750% 07/17/08 206 Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 5,000 minus 0.080% 04/30/07 (5) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 5,000 minus 0.030% 07/16/07 (6) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 4,000 minus 0.030% 09/28/07 (5) Bank of America CMBS AAA 10 Year Index Bank of America 10,000 CMBS AAA 10 Year Index 05/31/07 (11) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 5,000 plus 0.050% 05/31/07 (6) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 5,000 minus 0.050% 07/31/07 (5) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 4,000 minus 0.080% 06/15/07 (4) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 3,500 minus 0.050% 06/29/07 (4) JP Morgan CMBS AAA 10 Year Index CMBS AAA 10 Year Index Goldman Sachs 4,500 minus 0.030% 05/31/07 (5) JP Morgan CMBS AAA 10 Year Index CMBS AAA 10 Year Index JP Morgan 2,000 minus 0.080% 03/31/07 (2) Citibank CMBS AAA 10 Year Index Citibank 3,500 CMBS AAA 10 Year Index 03/31/07 (4) -------------- Total Unrealized Appreciation (Depreciation) on Open Index Swap Contracts 183 ==============
See accompanying notes which are an integral part of the schedules of investments. Multistrategy Bond Fund 135 RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INTEREST RATE SWAP CONTRACTS - ------------------------------------------------------------------------------------------------------------------------ MARKET COUNTER NOTIONAL TERMINATION VALUE PARTY AMOUNT FUND RECEIVES FUND PAYS DATE $ - ---------------------------- ----------------- -------------------- -------------------- ----------- --------- Bank of America USD 35,900 5.000% Three Month LIBOR 06/21/10 (212) Bank of America USD 37,500 5.473% Three Month LIBOR 06/14/11 316 Bank of America USD 26,400 Three Month LIBOR 5.000% 06/20/12 283 Bank of America USD 8,400 Three Month LIBOR 5.100% 06/20/14 91 Bank of America USD 13,200 5.548% Three Month LIBOR 06/14/16 206 Bank of America USD 7,000 5.628% Three Month LIBOR 06/16/36 160 Barclays Bank PLC EUR 17,160 3.900% Six Month LIBOR 03/20/09 (140) Barclays Bank PLC USD 18,100 5.000% Three Month LIBOR 06/20/09 (81) Consumer Price Index Barclays Bank PLC EUR 2,800 2.103% (France) 10/15/10 52 Barclays Bank PLC GBP 1,420 5.100% Six Month LIBOR 03/20/12 (64) Barclays Bank PLC EUR 22,000 4.250% Six Month LIBOR 07/20/16 (171) Barclays Bank PLC SEK 204,000 Three Month LIBOR 4.323% 07/20/16 (1,264) Barclays Bank PLC SEK 30,000 Three Month LIBOR 4.000% 03/20/17 165 Barclays Bank PLC GBP 600 Six Month LIBOR 4.000% 12/15/36 127 Barclays Bank PLC EUR 1,590 Six Month LIBOR 4.000% 03/20/37 154 BNP Paribas EUR 1,570 Six Month LIBOR 4.000% 03/20/37 152 Citibank JPY 2,913,000 1.500% Six Month LIBOR 03/20/12 160 Citibank EUR 10,130 Six Month LIBOR 3.900% 03/20/12 208 Citibank JPY 3,059,000 Six Month LIBOR 1.500% 06/20/12 (132) Mexico Interbank 28 Citibank MXN 2,300 8.170% Day Deposit Rate 11/04/16 -- Citibank JPY 187,000 2.000% Six Month LIBOR 12/20/16 24 Citibank JPY 1,355,000 1.900% Six Month LIBOR 03/20/17 38 Credit Suisse First Boston EUR 63,300 Six Month LIBOR 3.970% 02/23/09 384 Credit Suisse First Boston EUR 70,180 3.950% Six Month LIBOR 02/22/12 (1,198) Credit Suisse First Boston GBP 1,340 Six Month LIBOR 5.100% 03/20/12 47 Credit Suisse First Boston EUR 2,690 4.000% Six Month LIBOR 03/20/17 (98) Credit Suisse First Boston SEK 74,740 Three Month LIBOR 4.000% 03/20/17 433 Credit Suisse First Boston EUR 21,810 Six Month LIBOR 4.080% 02/22/22 1,082 Credit Suisse First Boston USD 3,700 5.815% Three Month LIBOR 09/22/36 185 Credit Suisse First Boston EUR 1,680 4.000% Six Month LIBOR 03/20/37 (163) Credit Suisse First Boston USD 3,590 Three Month LIBOR 5.250% 03/20/37 117 Deutsche Bank JPY 650,000 1.000% Six Month LIBOR 09/18/08 4 Deutsche Bank USD 34,200 5.000% Three Month LIBOR 06/20/09 (153) Deutsche Bank AUD 21,830 6.200% Six Month LIBOR 03/20/12 (58) Deutsche Bank USD 8,980 Three Month LIBOR 5.000% 03/20/12 101 Deutsche Bank USD 46,700 5.000% Three Month LIBOR 06/20/12 (501) Deutsche Bank USD 12,520 Three Month LIBOR 5.000% 06/20/12 136 Deutsche Bank USD 76,500 5.100% Three Month LIBOR 06/20/14 (826) Deutsche Bank JPY 253,000 2.000% Six Month LIBOR 12/20/16 33 Deutsche Bank JPY 200,000 2.500% Six Month LIBOR 12/20/26 45 Goldman Sachs JPY 310,000 1.500% Six Month LIBOR 06/20/12 10 Goldman Sachs JPY 339,000 2.000% Six Month LIBOR 12/20/16 44 HSBC GBP 7,200 4.500% Six Month LIBOR 12/20/07 (140) HSBC GBP 200 Six Month LIBOR 4.000% 12/15/36 42 JP Morgan USD 36,900 5.000% Three Month LIBOR 06/20/09 (165) JP Morgan USD 9,500 Three Month LIBOR 5.000% 06/20/12 102 JP Morgan JPY 5,088,000 Six Month LIBOR 1.700% 03/20/14 -- JP Morgan USD 28,200 Three Month LIBOR 5.100% 06/20/14 305
See accompanying notes which are an integral part of the schedules of investments. 136 Multistrategy Bond Fund RUSSELL INVESTMENT COMPANY MULTISTRATEGY BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INTEREST RATE SWAP CONTRACTS, CONTINUED - ------------------------------------------------------------------------------------------------------------------------ MARKET COUNTER NOTIONAL TERMINATION VALUE PARTY AMOUNT FUND RECEIVES FUND PAYS DATE $ - ---------------------------- ----------------- -------------------- -------------------- ----------- --------- JP Morgan GBP 900 Six Month LIBOR 4.000% 12/15/36 190 JP Morgan USD 2,100 5.000% Three Month LIBOR 06/20/37 (143) Lehman Brothers USD 3,900 5.000% Three Month LIBOR 06/20/09 (17) Lehman Brothers GBP 8,400 4.500% Six Month LIBOR 09/20/09 (380) Lehman Brothers JPY 192,000 1.700% Six Month LIBOR 03/20/14 11 Lehman Brothers GBP 810 4.900% Six Month LIBOR 03/20/17 (52) Lehman Brothers JPY 180,000 Six Month LIBOR 1.900% 03/20/17 (5) Lehman Brothers GBP 260 Six Month LIBOR 4.300% 03/20/37 30 Merrill Lynch GBP 19,300 4.500% Six Month LIBOR 09/20/09 (873) Merrill Lynch BRL 1,200 12.948% Three Month BRCDI 01/04/10 6 Merrill Lynch GBP 300 4.000% Six Month LIBOR 12/15/35 7 Morgan Stanley EUR 2,800 6.000% Six Month LIBOR 06/18/34 491 Royal Bank of Canada CAD 2,200 4.500% Three Month LIBOR 06/15/27 (71) Salomon Smith Barney PLN 28,000 4.665% Six Month LIBOR 01/16/09 (14) Salomon Smith Barney MXN 141,000 7.940% Three Month LIBOR 06/28/09 -- UBS Securities USD 13,100 5.000% Three Month LIBOR 06/20/19 (58) --------- Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $2,730 (1,038) =========
CREDIT DEFAULT SWAP CONTRACTS - -------------------------------------------------------------------------------------------------------------------- NOTIONAL MARKET REFERENCE COUNTER AMOUNT FUND RECEIVES TERMINATION VALUE ENTITY PARTY $ FIXED RATE DATE $ - ------------------------------ ---------------- --------- ---------------- -------------- ---------------- Anadarko Petroleum Corp. Goldman Sachs 500 0.150% 03/20/08 -- Brazilian Government Salomon Smith International Bond Barney 4,500 1.500% 08/22/11 114 Brazilian Government International Bond Lehman Brothers 5,200 1.120% 11/20/11 41 Brazilian Government International Bond Morgan Stanley 500 1.660% 03/20/13 12 Core Investment Grade Bond Bank of America 15,000 0.650% 12/20/16 92 Dow Jones CDX High Volatility Index UBS 13,000 0.900% 06/20/10 176 Dow Jones CDX High Volatility Index Lehman Brothers 2,800 3.250% 12/20/11 97 Dow Jones CDX High Volatility Index Bank of America 4,000 0.650% 12/20/16 25 Dow Jones CDX High Volatility Index Goldman Sachs 10,000 0.650% 12/20/16 62 Ford Motor Credit Co. Merrill Lynch 500 1.700% 06/20/07 2 GAP Inc. (The) Lehman Brothers 1,220 1.240% 12/20/11 6 Gaz Capital for Gazprom JP Morgan 4,400 0.415% 11/20/07 1 Indonesia Government International Bond Lehman Brothers 400 0.400% 12/20/08 -- Mexico Government International Bond JP Morgan 2,400 0.920% 03/20/16 42 Panama Government International Bond JP Morgan 300 1.250% 01/20/17 1 Royal Bank of Republic of Indonesia Scotland 1,000 0.390% 12/20/08 -- Russia Government International Bond Morgan Stanley 200 0.460% 06/20/07 -- Russia Government International Bond Deutsche Bank 1,000 0.260% 12/20/07 -- Russia Government International Bond Morgan Stanley 300 0.780% 03/20/16 3 Russia Government International Bond JP Morgan 300 0.800% 03/20/16 4 Sabre Holding Corp Lehman Brothers 1,225 3.120% 03/20/12 (10) SoftBank Corp Deutsche Bank 45,000 2.300% 09/20/07 4 ---------------- Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($354) 672 ================
See accompanying notes which are an integral part of the schedules of investments. Multistrategy Bond Fund 137 RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS - 96.2% Alabama - 0.5% City of Tuscaloosa Alabama General Obligation Unlimited 340 5.000 02/15/07 340 County of Jefferson Alabama General Obligation Unlimited (u) 500 5.000 04/01/10 517 Courtland Industrial Development Board Revenue Bonds 250 5.000 11/01/13 260 Mobile County Board of School Commissioners General Obligation Unlimited, weekly demand (u)(ae) 375 5.000 03/01/12 392 ------------ 1,509 ------------ Alaska - 0.5% City of Anchorage Alaska General Obligation Unlimited, weekly demand (u)(ae) 500 5.750 12/01/16 535 Northern TOB Securitization Corp. Revenue Bonds, weekly demand 950 4.625 06/01/23 942 ------------ 1,477 ------------ Arizona - 2.5% Arizona State Transportation Board Revenue Bonds, weekly demand 500 5.250 07/01/12 529 Arizona State Transportation Board Revenue Bonds 1,500 5.000 07/01/14 1,610 Maricopa County Pollution Control Corp. Revenue Bonds, annual demand 1,000 2.900 06/01/35 977 Mesa Arizona General Obligation Unlimited, weekly demand (u)(ae) 1,000 5.000 07/01/17 1,030 Phoenix Civic Improvement Corp. Revenue Bonds (u) 250 5.500 07/01/07 252 Phoenix Civic Improvement Corp. Revenue Bonds, weekly demand (u) 1,325 5.000 07/01/35 1,391 Salt River Project Agricultural Improvement & Power District Revenue Bonds, weekly demand 1,350 5.000 01/01/25 1,411 Town of Marana Arizona Special Assessment, semiannual demand 485 4.600 01/01/26 476 ------------ 7,676 ------------ California - 10.1% Abag Finance Authority for Nonprofit Corps. Certificate Of Participation, weekly demand 600 5.700 08/15/14 612 California State Department of Veterans Affairs Revenue Bonds, weekly demand 750 4.600 12/01/28 751 California State Department of Water Resources Revenue Bonds 250 5.500 05/01/10 263 California State Department of Water Resources Revenue Bonds (u) 1,000 5.250 05/01/12 1,072 California State Department of Water Resources Revenue Bonds, weekly demand (E)(u) 3,200 3.630 05/01/22 3,200 California State Public Works Board Revenue Bonds 630 5.000 06/01/10 653 California Statewide Communities Development Authority Revenue Bonds, annual demand (E)(u) 610 4.100 04/01/28 616 California Statewide Communities Development Authority Revenue Bonds, annual demand (E) 1,000 5.200 12/01/29 1,024 California Statewide Communities Development Authority Revenue Bonds, annual demand (E)(ae) 1,250 2.300 04/01/33 1,244 California Statewide Communities Development Authority Revenue Bonds, annual demand (E) 1,100 2.625 04/01/34 1,079 California Statewide Communities Development Authority Revenue Bonds, annual demand (E) 900 4.350 11/01/36 900 California Statewide Communities Development Authority Revenue Bonds, weekly demand 1,500 5.250 03/01/45 1,582 Golden State Tobacco Securitization Corp. Revenue Bonds, weekly demand (ae) 405 5.500 06/01/18 408
138 Tax Exempt Bond Fund RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Golden State Tobacco Securitization Corp. Revenue Bonds, weekly demand (u) 500 5.000 06/01/20 517 Golden State Tobacco Securitization Corp. Revenue Bonds, weekly demand 555 5.000 06/01/21 556 Golden State Tobacco Securitization Corp. Revenue Bonds, weekly demand (u) 750 4.600 06/01/23 645 Kings River Conservation District Certificate Of Participation 850 5.000 05/01/15 897 Los Angeles Unified School District General Obligation Unlimited, weekly demand (u) 215 4.250 07/01/28 207 Roseville Westpark Community Facilities District No. 1 Special Tax, semiannual demand 600 5.250 09/01/37 609 Southern California Public Power Authority Revenue Bonds (u) 405 5.375 01/01/12 435 State of California General Obligation Unlimited 1,000 6.600 02/01/10 1,078 State of California General Obligation Unlimited 1,000 5.000 10/01/11 1,052 State of California General Obligation Unlimited 2,050 5.000 02/01/12 2,159 State of California General Obligation Unlimited 1,000 5.250 07/01/12 1,071 State of California General Obligation Unlimited, weekly demand 500 5.250 02/01/14 540 State of California General Obligation Unlimited, weekly demand (u) 1,500 5.000 02/01/26 1,561 State of California General Obligation Unlimited, weekly demand (u) 1,500 5.250 02/01/30 1,582 State of California General Obligation Unlimited, weekly demand 1,250 5.000 02/01/33 1,295 Tobacco Securitization Authority of Southern California Revenue Bonds, weekly demand 1,000 4.750 06/01/25 1,007 University of California Revenue Bonds (u) 1,500 5.000 05/15/13 1,602 University of California Revenue Bonds, weekly demand (u) 1,000 5.000 05/15/33 1,049 ------------ 31,266 ------------ Colorado - 0.7% Colorado Department of Transportation Revenue Bonds (u) 265 6.000 06/15/08 273 Colorado Health Facilities Authority Revenue Bonds, weekly demand 1,000 5.250 06/01/23 1,058 Colorado Housing & Finance Authority Revenue Bonds, weekly demand 55 7.250 04/01/10 55 Colorado Housing & Finance Authority Revenue Bonds, semiannual demand 55 6.300 08/01/12 57 Colorado Housing & Finance Authority Revenue Bonds (E) 50 6.300 08/01/16 51 Colorado Housing & Finance Authority Revenue Bonds, weekly demand 30 6.700 10/01/16 30 Jefferson County School District R-001 General Obligation Unlimited (u) 500 5.000 12/15/14 537 ------------ 2,061 ------------ Delaware - 0.2% Delaware State Economic Development Authority Revenue Bonds 225 6.500 01/01/08 231 Delaware State Economic Development Authority Revenue Bonds, annual demand (E)(u) 250 4.900 05/01/26 258 ------------ 489 ------------ District of Columbia - 0.7% District of Columbia General Obligation Unlimited (u) 1,000 5.500 06/01/09 1,037 District of Columbia Revenue Bonds (u) 1,000 5.000 02/01/12 1,052 ------------ 2,089 ------------ Florida - 6.2% City of Lakeland Florida Revenue Bonds, weekly demand 1,500 5.000 11/15/32 1,543 City of Pembroke Pines Florida Revenue Bonds (u) 1,000 5.000 10/01/16 1,083 City of Tallahassee Florida Revenue Bonds (u) 500 5.000 10/01/11 524 County of Hillsborough Florida Revenue Bonds, semiannual demand 50 6.200 12/01/08 51
Tax Exempt Bond Fund 139 RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- County of Miami-Dade Florida Revenue Bonds (u) 1,000 5.000 06/01/14 1,064 Escambia County Health Facilities Authority Revenue Bonds 1,000 5.250 11/15/13 1,076 Florida Department of Childrens & Family Services Certificate Of Participation (u) 1,175 5.000 10/01/15 1,261 Florida State Board of Education General Obligation Unlimited 1,500 5.000 01/01/09 1,534 Florida State Division of Bond Finance Revenue Bonds, weekly demand (u) 1,600 5.250 07/01/13 1,667 Florida Water Pollution Control Financing Corp. Revenue Bonds, weekly demand 500 5.500 01/15/12 534 Highlands County Health Facilities Authority Revenue Bonds, weekly demand 1,500 5.250 11/15/36 1,585 Hillsborough County Educational Facilities Authority Revenue Revenue Bonds, semiannual demand (u) 825 5.750 04/01/18 857 North Miami Florida Revenue Bonds (u) 1,325 5.000 04/01/10 1,371 Orlando Utilities Commission Revenue Bonds 1,000 5.900 10/01/08 1,035 Orlando Utilities Commission Revenue Bonds, weekly demand (ae) 630 5.250 10/01/20 675 Orlando Utilities Commission Revenue Bonds, weekly demand 370 5.250 10/01/20 393 Palm Glades Community Development District Special Assessment 1,175 4.850 08/01/11 1,173 Sarasota County Public Hospital Board Revenue Bonds, weekly demand (E)(u) 999 3.740 07/01/37 999 Verandah East Community Development District Special Assessment, weekly demand 1,000 5.400 05/01/37 1,011 ------------ 19,436 ------------ Georgia - 2.3% County of Fulton Georgia Revenue Bonds, weekly demand (u) 1,500 5.250 01/01/35 1,606 Dalton Georgia Revenue Bonds (u) 500 5.750 01/01/09 518 Georgia Municipal Electric Authority Revenue Bonds (u) 850 6.250 01/01/17 1,007 Georgia State Road & Tollway Authority Revenue Bonds 590 5.250 03/01/11 623 Main Street Natural Gas, Inc. Revenue Bonds 1,500 5.000 03/15/16 1,596 State of Georgia General Obligation Unlimited 1,000 5.750 08/01/08 1,030 State of Georgia General Obligation Unlimited 600 6.500 12/01/09 644 ------------ 7,024 ------------ Hawaii - 1.0% Hawaii Housing & Community Development Corp. Revenue Bonds, weekly demand 460 3.700 01/01/22 454 Kauai County Hawaii General Obligation Unlimited, weekly demand (u)(ae) 375 6.250 08/01/19 405 State of Hawaii General Obligation Unlimited (u) 1,000 5.750 01/01/10 1,053 State of Hawaii General Obligation Unlimited (u) 1,000 5.000 03/01/12 1,053 ------------ 2,965 ------------ Idaho - 0.4% Boise State University Revenue Bonds, semiannual demand (u) 1,250 5.375 04/01/22 1,339 ------------ Illinois - 4.4% Chicago Metropolitan Water Reclamation District-Greater Chicago General Obligation Unlimited 2,000 6.500 12/01/07 2,046 City of Chicago Illinois General Obligation Unlimited, weekly demand (u) 750 6.000 01/01/11 800 City of Chicago Illinois Tax Allocation (u) 700 Zero coupon 12/01/07 679
140 Tax Exempt Bond Fund RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Cook County Community Consolidated School District No. 15-Palatine General Obligation Limited (u) 2,235 Zero coupon 12/01/13 1,696 County of Cook Illinois General Obligation Unlimited, weekly demand (u)(ae) 2,160 5.375 11/15/21 2,294 Illinois Finance Authority Revenue Bonds (u) 400 Zero coupon 01/01/10 357 Illinois Finance Authority Revenue Bonds 670 5.500 10/01/12 720 Illinois Finance Authority Revenue Bonds 750 5.000 06/01/14 781 Illinois Finance Authority Revenue Bonds, weekly demand 575 5.000 04/01/36 590 Illinois Finance Authority Revenue Bonds, weekly demand 1,350 6.000 11/15/39 1,396 Illinois Health Facilities Authority Revenue Bonds 385 6.000 05/15/10 393 Illinois Housing Development Authority Revenue Bonds, weekly demand 500 4.850 01/01/37 505 Lake County Community Unit School District No. 116-Round Lake General Obligation Unlimited (u) 400 7.600 02/01/14 491 State of Illinois Revenue Bonds (u) 1,000 5.000 06/15/16 1,079 ------------ 13,827 ------------ Indiana - 2.3% Columbus Multi School Building Corp. Indiana Revenue Bonds (u) 450 5.000 01/10/10 465 Indiana Bond Bank Revenue Bonds (u) 315 5.750 08/01/13 327 Indiana Health Facility Financing Authority Revenue Bonds 1,000 5.500 11/15/10 1,057 Indiana Health Facility Financing Authority Revenue Bonds 1,000 5.000 11/01/11 1,047 Indiana Health Facility Financing Authority Revenue Bonds, annual demand (E)(ae) 1,180 5.000 11/01/26 1,192 Indiana State Finance Authority Revenue Bonds (u) 925 5.000 07/01/11 965 Indiana State Finance Authority Revenue Bonds 1,500 5.250 02/01/18 1,657 Indiana University Revenue Bonds, weekly demand (ae) 500 5.750 08/01/10 528 ------------ 7,238 ------------ Iowa - 0.4% Iowa Finance Authority Revenue Bonds 290 6.000 07/01/10 308 Tobacco Settlement Authority of Iowa Revenue Bonds, weekly demand (ae) 1,000 5.600 06/01/35 1,075 ------------ 1,383 ------------ Kansas - 1.3% Butler & Sedgwick Counties Unified School District No. 385 Andover General Obligation Unlimited (u) 500 5.000 09/01/09 515 Kansas Development Finance Authority Revenue Bonds (u) 150 5.000 08/01/10 156 Kansas Development Finance Authority Revenue Bonds (u) 1,000 5.000 08/01/13 1,067 Kansas State Department of Transportation Revenue Bonds, weekly demand (E) 1,400 3.700 09/01/20 1,400 Wyandotte County-Kansas City Unified Government Revenue Bonds, weekly demand 305 4.750 12/01/16 315 Wyandotte County-Kansas City Unified Government Transportation Development District Revenue Bonds, weekly demand 750 4.875 10/01/28 743 ------------ 4,196 ------------ Kentucky - 0.6% Louisville & Jefferson County Metropolitan Government Revenue Bonds, weekly demand 1,750 5.250 10/01/36 1,836 ------------
Tax Exempt Bond Fund 141 RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Louisiana - 0.9% Louisiana Energy & Power Authority Revenue Bonds (u) 200 5.500 01/01/08 203 Louisiana Offshore Terminal Authority Revenue Bonds, annual demand (E) 1,000 4.000 09/01/23 1,002 Morehouse Parish Louisiana Revenue Bonds 1,450 5.250 11/15/13 1,529 ------------ 2,734 ------------ Maryland - 1.4% Maryland Health & Higher Educational Facilities Authority Revenue Bonds, weekly demand 1,000 5.400 01/01/31 1,037 Maryland Health & Higher Educational Facilities Authority Revenue Bonds, weekly demand 500 5.000 07/01/40 511 State of Maryland General Obligation Unlimited 2,500 5.250 03/01/13 2,700 ------------ 4,248 ------------ Massachusetts - 2.9% Commonwealth of Massachusetts General Obligation Limited, weekly demand (ae) 430 6.000 02/01/11 460 Commonwealth of Massachusetts General Obligation Limited 2,000 5.000 07/01/12 2,110 Commonwealth of Massachusetts General Obligation Limited 1,000 5.500 11/01/15 1,111 Commonwealth of Massachusetts General Obligation Limited, weekly demand (ae) 1,000 5.750 10/01/19 1,066 Commonwealth of Massachusetts General Obligation Limited, weekly demand (u)(ae) 1,000 5.250 01/01/22 1,073 Commonwealth of Massachusetts General Obligation Unlimited 1,000 5.500 10/01/16 1,118 Commonwealth of Massachusetts General Obligation Unlimited (u) 750 5.250 09/01/22 846 Massachusetts Development Finance Agency Revenue Bonds 125 5.125 12/01/11 126 Massachusetts Development Finance Agency Revenue Bonds 50 5.150 10/01/14 51 Massachusetts Health & Educational Facilities Authority Revenue Bonds 35 5.000 07/01/07 35 Massachusetts School Building Authority Revenue Bonds (u) 750 5.000 08/15/13 799 Massachusetts State Port Authority Revenue Bonds 125 5.250 07/01/07 126 Massachusetts State Port Authority Revenue Bonds 150 5.750 07/01/10 159 ------------ 9,080 ------------ Michigan - 0.7% Bishop International Airport Authority Revenue Bonds (u) 750 5.000 12/01/10 764 Manistee Area Public Schools General Obligation Unlimited (u) 235 6.000 05/01/08 241 Michigan Municipal Bond Authority Revenue Bonds, weekly demand (ae) 500 5.750 10/01/11 538 Michigan State Hospital Finance Authority Revenue Bonds (u) 250 5.000 05/15/07 251 Michigan State Housing Development Authority Revenue Bonds (u) 405 4.150 10/01/13 408 ------------ 2,202 ------------ Minnesota - 0.5% State of Minnesota General Obligation Unlimited, semiannual demand 1,000 5.000 06/01/13 1,016 State Paul Housing & Redevelopment Authority Revenue Bonds, weekly demand 500 5.250 05/15/36 524 ------------ 1,540 ------------ Mississippi - 0.2% Mississippi Business Finance Commission Revenue Bonds, weekly demand (E) 750 4.550 12/01/28 740 ------------
142 Tax Exempt Bond Fund RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Missouri - 1.3% City of State Louis Missouri Revenue Bonds (u) 1,000 5.250 07/01/11 1,058 City of State Louis Missouri Revenue Bonds (u) 1,000 5.000 07/01/14 1,066 Joplin Missouri Industrial Development Authority Health Revenue Bonds 270 5.500 02/15/13 288 Missouri Development Finance Board Revenue Bonds, weekly demand 1,150 5.000 03/01/28 1,186 Missouri Housing Development Commission Revenue Bonds 145 4.350 12/01/07 145 Southeast Missouri State University Revenue Bonds (u) 250 5.625 04/01/10 264 ------------ 4,007 ------------ Montana - 0.5% City of Forsyth Montana Revenue Bonds, annual demand (E) 1,450 5.200 05/01/33 1,478 ------------ Nevada - 0.6% Clark County School District General Obligation Limited, weekly demand (u)(ae) 330 5.250 06/15/10 341 County of Clark Nevada General Obligation Limited (u) 1,000 5.000 11/01/13 1,066 Truckee Meadows Water Authority Revenue Bonds (u) 500 5.500 07/01/11 534 ------------ 1,941 ------------ New Hampshire - 0.7% New Hampshire Health & Education Facilities Authority Revenue Bonds 325 4.600 10/01/07 326 New Hampshire Health & Education Facilities Authority Revenue Bonds, weekly demand 1,675 5.000 07/01/32 1,727 ------------ 2,053 ------------ New Jersey - 3.3% New Jersey Economic Development Authority Revenue Bonds 1,000 5.000 09/01/12 1,051 New Jersey Economic Development Authority Revenue Bonds 1,000 5.250 03/01/14 1,078 New Jersey Economic Development Authority Revenue Bonds 1,020 5.375 06/15/15 1,094 New Jersey Health Care Facilities Financing Authority Revenue Bonds, weekly demand 500 5.250 07/01/25 533 New Jersey Health Care Facilities Financing Authority Revenue Bonds, weekly demand 655 5.000 07/01/29 673 New Jersey State Educational Facilities Authority Revenue Bonds 1,000 5.750 09/01/10 1,059 New Jersey State Housing & Mortgage Finance Agency Revenue Bonds (u) 885 4.300 11/01/07 889 New Jersey State Turnpike Authority Revenue Bonds (u) 500 5.500 01/01/09 516 New Jersey Transportation Trust Fund Authority Revenue Bonds 500 6.000 06/15/07 504 Tobacco Settlement Financing Corp. Revenue Bonds 1,000 5.500 06/01/11 1,065 Tobacco Settlement Financing Corp. Revenue Bonds, weekly demand 415 4.375 06/01/19 416 Tobacco Settlement Financing Corp. Revenue Bonds, weekly demand 1,250 4.500 06/01/23 1,224 ------------ 10,102 ------------ New York - 11.5% Battery Park City Authority Revenue Bonds, weekly demand 1,500 5.250 11/01/22 1,623 City of New York New York General Obligation Unlimited 500 5.000 08/01/10 518 City of New York New York General Obligation Unlimited 1,000 5.250 08/01/10 1,045 City of New York New York General Obligation Unlimited 1,500 5.000 08/01/11 1,567 City of New York New York General Obligation Unlimited, weekly demand 125 5.750 08/01/11 134 City of New York New York General Obligation Unlimited 850 5.000 03/01/12 892 City of New York New York General Obligation Unlimited 750 5.000 11/01/12 791
Tax Exempt Bond Fund 143 RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- City of New York New York General Obligation Unlimited, weekly demand 235 5.250 11/01/12 250 City of New York New York General Obligation Unlimited (u) 1,000 5.000 08/01/14 1,069 City of New York New York General Obligation Unlimited, weekly demand (u) 1,000 5.000 08/01/17 1,063 City of New York New York General Obligation Unlimited, weekly demand 1,500 5.000 08/01/21 1,573 City of New York New York General Obligation Unlimited, weekly demand 1,500 5.000 11/01/34 1,560 City of New York New York General Obligation Unlimited, weekly demand 1,000 5.000 03/01/35 1,042 Long Island Power Authority Revenue Bonds, weekly demand (u) 1,000 5.000 12/01/22 1,068 Long Island Power Authority Revenue Bonds, weekly demand (u) 1,250 5.000 12/01/23 1,330 Metropolitan Transportation Authority Revenue Bonds, weekly demand (u) 1,000 5.000 11/15/30 1,043 New York City Municipal Finance Authority Water and Sewer Systems Revenue Bonds, weekly demand 1,000 5.000 06/15/36 1,053 New York City Municipal Water Finance Authority Revenue Bonds 1,500 5.250 06/15/12 1,603 New York City Transitional Finance Authority Revenue Bonds 1,000 5.500 02/01/09 1,033 New York Mortgage Agency Revenue Bonds, weekly demand 450 5.150 04/01/17 454 New York State Dormitory Authority Revenue Bonds (u) 815 7.000 07/01/09 849 New York State Dormitory Authority Revenue Bonds (u) 960 5.000 02/15/13 1,018 New York State Dormitory Authority Revenue Bonds, annual demand (E) 2,000 5.250 11/15/23 2,127 New York State Dormitory Authority Revenue Bonds, weekly demand 1,300 5.000 03/15/31 1,375 New York State Dormitory Authority Revenue Bonds, weekly demand 900 Zero coupon 07/01/39 737 New York State Environmental Facilities Corp. Revenue Bonds (u) 1,000 6.000 06/15/12 1,107 New York State Environmental Facilities Corp. Revenue Bonds, weekly demand 1,500 5.000 06/15/34 1,575 Sales Tax Asset Receivables Corp. Revenue Bonds, weekly demand (u) 1,000 5.000 10/15/29 1,055 Suffolk County Industrial Development Agency Revenue Bonds, weekly demand 1,500 5.000 11/01/28 1,524 Suffolk County Judicial Facilities Agency Revenue Bonds (u) 500 5.500 04/15/09 518 Tobacco Settlement Financing Authority Revenue Bonds, weekly demand 35 5.500 06/01/10 35 TSASC, Inc. Revenue Bonds (ae) 1,000 5.500 07/15/13 1,026 TSASC, Inc. Revenue Bonds, weekly demand 1,150 4.750 06/01/22 1,149 United Nations Development Corp. Revenue Bonds, weekly demand 1,000 5.000 07/01/11 1,011 ------------ 35,817 ------------ North Carolina - 2.1% Mecklenburg County North Carolina General Obligation Unlimited 1,000 5.000 02/01/11 1,047 North Carolina Capital Facilities Finance Agency Revenue Bonds, weekly demand 275 4.250 07/01/42 257 North Carolina Eastern Municipal Power Agency Revenue Bonds 250 5.500 01/01/10 261 North Carolina Medical Care Commission Revenue Bonds, weekly demand 750 5.400 10/01/27 774 North Carolina Municipal Power Agency No. 1 Catawba Revenue Bonds, semiannual demand (u) 1,500 6.000 01/01/12 1,644 North Carolina Municipal Power Agency No. 1 Catawba Revenue Bonds 200 5.500 01/01/13 213 State of North Carolina General Obligation Unlimited 1,000 5.000 03/01/12 1,058 University of North Carolina Revenue Bonds, weekly demand (ae) 1,065 5.375 12/01/14 1,133 ------------ 6,387 ------------ North Dakota - 0.2% Williams County North Dakota Revenue Bonds, weekly demand 750 5.000 11/01/31 762 ------------
144 Tax Exempt Bond Fund RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Ohio - 1.5% City of Columbus Ohio General Obligation Limited 585 5.250 01/01/11 616 Jackson Local School District Stark & Summit Counties General Obligation Unlimited (u) 500 Zero coupon 12/01/07 485 Ohio State Building Authority Revenue Bonds 575 5.750 04/01/08 588 Ohio State Higher Educational Facility Commission Revenue Bonds 1,000 5.000 12/01/09 1,027 State of Ohio General Obligation Unlimited 1,500 5.000 09/15/14 1,609 University of Cincinnati Revenue Bonds (u) 300 5.500 06/01/08 307 ------------ 4,632 ------------ Oklahoma - 0.4% Oklahoma Development Finance Authority Revenue Bonds 275 5.000 10/01/13 287 Oklahoma Housing Finance Agency Revenue Bonds, weekly demand 60 7.600 09/01/15 61 Tulsa Industrial Authority Revenue Bonds, weekly demand 1,000 5.000 10/01/37 1,028 ------------ 1,376 ------------ Oregon - 1.0% Clackamas County School Distrist No. 62C Oregon City General Obligation Unlimited, weekly demand (ae) 435 6.000 06/15/11 466 Oregon State Department of Administrative Services Revenue Bonds, weekly demand (u) 750 5.250 04/01/10 780 Oregon State Department of Transportation Revenue Bonds 1,000 5.000 11/15/13 1,066 State of Oregon General Obligation Limited, weekly demand 745 5.700 10/01/32 753 ------------ 3,065 ------------ Pennsylvania - 3.0% Allegheny County Port Authority Revenue Bonds, weekly demand (u) 250 5.500 03/01/17 267 Berks County Vocational Technical School Authority Revenue Bonds (u) 1,260 5.000 06/01/15 1,358 City of Philadelphia Pennsylvania Revenue Bonds (u) 500 5.500 07/01/07 504 Commonwealth of Pennsylvania General Obligation Unlimited (u) 1,300 5.375 07/01/17 1,456 County of Allegheny Pennsylvania General Obligation Unlimited (u) 1,000 5.000 10/01/15 1,080 Cumberland County Municipal Authority Revenue Bonds, weekly demand 645 5.000 01/01/36 660 Erie County Industrial Development Authority Revenue Bonds 180 5.300 04/01/12 188 Lancaster Higher Education Authority Revenue Bonds, weekly demand 1,705 5.000 04/15/25 1,795 Montgomery County Higher Education & Health Authority Revenue Bonds, weekly demand 1,000 5.125 06/01/32 1,034 Norwin School District General Obligation Unlimited, weekly demand (u)(ae) 250 6.000 04/01/20 265 Sayre Health Care Facilities Authority Revenue Bonds, weekly demand 555 5.300 12/01/12 575 ------------ 9,182 ------------ Puerto Rico - 5.5% Commonwealth of Puerto Rico General Obligation Unlimited, weekly demand (u) 1,000 5.250 07/01/27 1,060 Commonwealth of Puerto Rico General Obligation Unlimited, weekly demand 1,000 5.250 07/01/32 1,071 Government Development Bank for Puerto Rico Revenue Bonds 3,250 5.000 12/01/09 3,339 Puerto Rico Convention Center Authority Revenue Bonds, weekly demand (u) 1,250 5.000 07/01/31 1,331 Puerto Rico Electric Power Authority Revenue Bonds 500 5.000 07/01/08 507 Puerto Rico Electric Power Authority Revenue Bonds (u) 500 5.500 07/01/17 564 Puerto Rico Highway & Transportation Authority Revenue Bonds 2,000 5.000 07/01/13 2,106 Puerto Rico Public Buildings Authority Revenue Bonds, annual demand (E) 1,500 4.500 07/01/22 1,503
Tax Exempt Bond Fund 145 RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Puerto Rico Public Buildings Authority Revenue Bonds, weekly demand 2,000 5.500 07/01/23 2,169 Puerto Rico Public Finance Corp. Revenue Bonds, annual demand (E)(u) 3,250 5.750 08/01/27 3,490 ------------ 17,140 ------------ Rhode Island - 0.3% Rhode Island Economic Development Corp. Revenue Bonds (u) 1,000 5.000 06/15/12 1,058 ------------ South Carolina - 2.1% Greenville County School District Revenue Bonds 1,000 5.000 12/01/11 1,047 Orangeburg Joint Governmental Action Authority Revenue Bonds (u) 1,050 5.000 10/01/09 1,083 Richland-Lexington Airport District Revenue Bonds (u) 500 5.000 01/01/09 511 Richland-Lexington Airport District Revenue Bonds (u) 440 5.000 01/01/10 454 South Carolina State Public Service Authority Revenue Bonds, weekly demand (u) 375 5.500 01/01/11 396 South Carolina Transportation Infrastructure Bank Revenue Bonds, weekly demand (u) 2,500 5.250 10/01/31 2,634 Spartanburg County South Carolina Revenue Bonds (u) 500 6.000 04/15/07 502 ------------ 6,627 ------------ South Dakota - 0.5% South Dakota State Building Authority Revenue Bonds (u) 1,330 5.000 09/01/12 1,407 ------------ Tennessee - 2.3% Clarksville Natural Gas Acquisition Corp. Revenue Bonds 1,000 5.000 12/15/14 1,061 Memphis-Shelby County Airport Authority Revenue Bonds 1,430 5.050 09/01/12 1,495 Tennessee Energy Acquisition Corp. Revenue Bonds 1,000 5.000 02/01/16 1,063 Tennessee Energy Acquisition Corp. Revenue Bonds 1,000 5.250 09/01/17 1,090 Tennessee Energy Acquisition Corp. Revenue Bonds 1,500 5.000 02/01/18 1,602 Tennessee Housing Development Agency Revenue Bonds, weekly demand 950 5.375 01/01/18 988 ------------ 7,299 ------------ Texas - 11.5% Alvin Independent School District General Obligation Unlimited 515 6.750 08/15/09 551 Alvin Independent School District General Obligation Unlimited 545 6.750 08/15/10 597 Boerne Independent School District General Obligation Unlimited, weekly demand 1,380 5.250 02/01/27 1,465 Boerne Independent School District General Obligation Unlimited, weekly demand 1,500 5.250 02/01/29 1,591 Brazos River Harbor Navigation District Revenue Bonds, annual demand (E) 220 4.750 05/15/33 220 Canadian River Municipal Water Authority Revenue Bonds (u) 1,080 5.000 02/15/11 1,127 Canadian River Municipal Water Authority Revenue Bonds, weekly demand (u) 800 5.000 02/15/17 858 Canadian River Municipal Water Authority Revenue Bonds, weekly demand (u) 415 5.000 02/15/18 444 City of Dallas Texas Revenue Bonds, weekly demand (u) 1,000 4.875 08/15/23 1,020 City of San Antonio Texas Revenue Bonds 1,000 5.250 02/01/13 1,072 City of San Antonio Texas Revenue Bonds 1,000 5.000 02/01/14 1,073 Conroe Independent School District General Obligation Unlimited 1,445 5.000 02/15/13 1,532 County of Harris Texas General Obligation Limited 1,435 5.250 08/15/09 1,485 County of Harris Texas Revenue Bonds, annual demand (E)(u) 1,500 5.000 08/15/21 1,540
146 Tax Exempt Bond Fund RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Dallas Independent School District General Obligation Unlimited 2,100 5.000 02/15/14 2,239 El Paso County Community College District Revenue Bonds, weekly demand (u) 1,030 5.000 04/01/21 1,102 Lower Colorado River Authority Revenue Bonds, weekly demand (u) 1,500 5.875 05/15/17 1,578 North Texas Municipal Water District Revenue Bonds (u) 2,000 5.000 09/01/13 2,129 North Texas Tollway Authority Revenue Bonds, annual demand (E)(u)(ae) 15 5.000 01/01/18 15 North Texas Tollway Authority Revenue Bonds, annual demand (E)(u) 985 5.000 01/01/18 1,002 Port of Corpus Christi Authority of Nueces County Texas Revenue Bonds, weekly demand 385 5.350 11/01/10 387 Round Rock Independent School District General Obligation Unlimited 1,000 6.500 08/01/10 1,087 Round Rock Independent School District General Obligation Unlimited, weekly demand (ae) 750 6.500 08/01/11 816 Round Rock Independent School District General Obligation Unlimited 430 5.375 08/01/12 463 Sabine River Authority Revenue Bonds, weekly demand 1,500 5.200 05/01/28 1,565 State of Texas General Obligation Unlimited, weekly demand 1,500 5.000 04/01/24 1,596 Texas A & M University Revenue Bonds 1,000 5.000 07/01/08 1,018 Texas Municipal Gas Acquisition & Supply Corp. I Revenue Bonds 1,000 5.000 12/15/13 1,056 Tyler Independent School District General Obligation Unlimited 1,350 5.000 02/15/10 1,393 University of Houston Revenue Bonds, weekly demand (u)(ae) 2,000 5.500 02/15/30 2,097 University of Texas Revenue Bonds, weekly demand 1,500 5.000 08/15/24 1,597 ------------ 35,715 ------------ Utah - 0.7% County of Utah Utah Revenue Bonds, annual demand 200 5.050 11/01/17 210 Intermountain Power Agency Revenue Bonds (u) 1,400 6.500 07/01/10 1,520 Utah Transit Authority Revenue Bonds, weekly demand (E)(u) 300 3.720 06/15/36 300 ------------ 2,030 ------------ Virgin Islands - 0.9% Virgin Islands Public Finance Authority Revenue Bonds 200 5.000 10/01/13 210 Virgin Islands Public Finance Authority Revenue Bonds, weekly demand 2,500 5.500 10/01/14 2,579 ------------ 2,789 ------------ Virginia - 0.6% Suffolk Industrial Development Authority Revenue Bonds, weekly demand 625 5.300 09/01/31 634 Virginia Commonwealth Transportation Board Revenue Bonds, weekly demand 360 5.375 05/15/12 382 Virginia Housing Development Authority Revenue Bonds, weekly demand (u) 400 5.375 07/01/36 415 Virginia Public Building Authority Revenue Bonds 500 5.750 08/01/07 505 ------------ 1,936 ------------ Washington - 3.1% Energy Northwest Revenue Bonds 1,000 5.000 07/01/11 1,045 King County Public Hospital District No. 2 General Obligation Limited, weekly demand (u) 1,000 5.000 12/01/19 1,063 King County School District No. 405 Bellevue General Obligation Unlimited (u) 1,000 5.000 12/01/14 1,072 Kitsap County Washington General Obligation Limited, weekly demand (u)(ae) 775 5.750 07/01/14 824 Mason County School District No. 309 Shelton General Obligation Unlimited (u) 1,115 5.000 12/01/18 1,210 State of Washington General Obligation Unlimited, weekly demand 1,500 5.000 01/01/20 1,528
Tax Exempt Bond Fund 147 RUSSELL INVESTMENT COMPANY TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL DATE MARKET AMOUNT ($) RATE OF VALUE OR SHARES % MATURITY $ - -------------------------------------------------------------------------------------------------------------------------- Tobacco Settlement Authority of Washington Revenue Bonds, weekly demand 860 6.500 06/01/26 944 Washington Higher Education Facilities Authority Revenue Bonds (u) 1,000 5.000 11/01/13 1,048 Washington Public Power Supply System Revenue Bonds 1,000 7.000 07/01/08 1,044 ------------ 9,778 ------------ Wisconsin - 1.9% City of Madison Wisconsin Revenue Bonds, annual demand 280 4.875 10/01/27 289 Oconto Falls Public School District General Obligation Unlimited, weekly demand (u)(ae) 750 5.750 03/01/13 806 State of Wisconsin Certificate Of Participation (u) 2,825 5.000 03/01/11 2,950 Wisconsin Housing & Economic Development Authority Revenue Bonds, weekly demand 40 6.850 11/01/12 41 Wisconsin State Health & Educational Facilities Authority Revenue Bonds (u) 1,425 5.000 12/01/10 1,480 Wisconsin State Health & Educational Facilities Authority Revenue Bonds 210 5.250 05/01/12 217 Wisconsin State Health & Educational Facilities Authority Revenue Bonds 220 5.250 05/01/13 228 ------------ 6,011 ------------ TOTAL MUNICIPAL BONDS (cost $297,763) 298,947 ------------ SHORT-TERM INVESTMENTS - 2.1% Russell Investment Company Tax Free Money Market Fund 6,642,848 6,643 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $6,643) 6,643 ------------ TOTAL INVESTMENTS - 98.3% (identified cost $304,406) 305,590 OTHER ASSETS AND LIABILITIES, NET - 1.7% 5,162 ------------ NET ASSETS - 100.0% 310,752 ============
See accompanying notes which are an integral part of the schedules of investments. 148 Tax Exempt Bond Fund RUSSELL INVESTMENT FUNDS TAX EXEMPT BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
- ---------------------------------------------------------------------------- ECONOMIC SECTOR EMPHASIS AS A % OF VALUE General Obligation 27% Other Revenue 14 Utilities Revenue 14 Education Revenue 10 Health Care Revenue 10 Industrial Revenue 9 Cash Equivalents 7 Leasing Revenue 4 Pollution Control Revenue 3 Housing Revenue 2 Refunded and Special Obligations -- --- 100% === QUALITY RATINGS AS A % OF VALUE AAA 48% AA 17 A 16 BBB 14 BB 1 Other 4 --- 100% ===
See accompanying notes which are an integral part of the schedules of investments. Tax Exempt Bond Fund 149 RUSSELL INVESTMENT COMPANY TAX-MANAGED LARGE CAP FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 93.4% Auto and Transportation - 1.1% Burlington Northern Santa Fe Corp. 4,200 337 CSX Corp. 32,500 1,196 FedEx Corp. 200 22 Harley-Davidson, Inc. 3,100 212 Norfolk Southern Corp. 29,700 1,475 Toyota Motor Corp. - ADR 9,970 1,314 US Airways Group, Inc. (AE) 20,250 1,133 ------------ 5,689 ------------ Consumer Discretionary - 14.8% Abercrombie & Fitch Co. Class A 10,700 851 Allied Waste Industries, Inc. (AE)(N) 176,600 2,259 Carnival Corp. 5,300 273 CBS Corp. Class B 17,050 531 Coach, Inc. (AE) 58,250 2,671 eBay, Inc. (AE) 26,700 865 Electronic Arts, Inc. (AE) 3,400 170 EW Scripps Co. Class A 11,800 576 Federated Department Stores, Inc. 107,500 4,460 Focus Media Holding, Ltd. - ADR (AE) 15,750 1,302 Gannett Co., Inc. 6,400 372 Google, Inc. Class A (AE) 25,080 12,573 Hilton Hotels Corp. 6,600 234 Home Depot, Inc. 15,000 611 InterActiveCorp (AE)(N) 25,400 975 International Game Technology 28,060 1,220 Iron Mountain, Inc. (AE)(N) 37,050 1,037 JC Penney Co., Inc. 7,200 585 Jones Apparel Group, Inc. 15,900 543 Kohl's Corp. (AE) 12,400 879 Las Vegas Sands Corp. (AE) 21,040 2,190 Lowe's Cos., Inc. 154,600 5,212 Mattel, Inc. 58,400 1,423 McDonald's Corp. 79,800 3,539 News Corp. Class A 123,410 2,869 Nike, Inc. Class B 12,800 1,265 Omnicom Group, Inc. 14,110 1,484 Polo Ralph Lauren Corp. Class A 10,260 842 RadioShack Corp. (N) 64,500 1,425 Staples, Inc. 33,700 867 Starbucks Corp. (AE) 224,640 7,849 Starwood Hotels & Resorts Worldwide, Inc. (o) 4,100 257 Target Corp. 22,900 1,405 Tim Hortons, Inc. (N) 2,573 80 Time Warner, Inc. 215,475 4,712 VF Corp. 10,800 819 Viacom, Inc. Class A (AE) 18,450 750 Wal-Mart Stores, Inc. 33,700 1,607 Walt Disney Co. (The) 85,100 2,993 Yahoo!, Inc. (AE) 99,500 2,817
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Yum! Brands, Inc. 8,000 480 ------------ 77,872 ------------ Consumer Staples - 4.8% Altria Group, Inc. 65,300 5,707 Anheuser-Busch Cos., Inc. 14,200 724 Coca-Cola Co. (The) 52,500 2,514 ConAgra Foods, Inc. (N) 33,300 856 CVS Corp. 35,400 1,191 General Mills, Inc. 13,700 784 Kellogg Co. 3,400 168 Molson Coors Brewing Co. Class B 7,900 638 PepsiCo, Inc. 50,080 3,267 Procter & Gamble Co. 100,825 6,540 Walgreen Co. 59,800 2,709 ------------ 25,098 ------------ Financial Services - 22.6% Aflac, Inc. 3,800 181 AllianceBernstein Holding, LP (N) 20,100 1,811 Allstate Corp. (The) 53,000 3,188 AMBAC Financial Group, Inc. 23,800 2,097 American Express Co. 40,590 2,363 American International Group, Inc. 92,600 6,338 Apartment Investment & Management Co. Class A (o) 4,500 282 Assurant, Inc. 22,800 1,267 Bank of America Corp. 97,979 5,152 Bank of New York Co., Inc. (The) (N) 48,000 1,920 Capital One Financial Corp. 75,957 6,107 Charles Schwab Corp. (The) 131,890 2,495 Chicago Mercantile Exchange Holdings, Inc. Class A 11,140 6,275 Cigna Corp. 8,900 1,178 CIT Group, Inc. 23,500 1,386 Citigroup, Inc. (N) 189,600 10,453 City National Corp. 500 36 Comerica, Inc. (N) 2,500 148 Compass Bancshares, Inc. 6,000 365 Countrywide Financial Corp. 139,100 6,048 E*Trade Financial Corp. (AE) 18,600 453 First Data Corp. 2,440 61 Franklin Resources, Inc. 3,300 393 Genworth Financial, Inc. Class A 19,700 688 Goldman Sachs Group, Inc. 40,050 8,497 Hartford Financial Services Group, Inc. 9,800 930
150 Tax-Managed Large Cap Fund RUSSELL INVESTMENT COMPANY TAX-MANAGED LARGE CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Host Hotels & Resorts, Inc. (o) 19,332 512 IntercontinentalExchange, Inc. (AE)(N) 30,200 3,943 Janus Capital Group, Inc. 79,400 1,626 JPMorgan Chase & Co. 37,800 1,925 Lehman Brothers Holdings, Inc. 39,600 3,257 Lincoln National Corp. 6,600 443 Marshall & Ilsley Corp. 5,000 235 MBIA, Inc. (N) 12,900 927 Merrill Lynch & Co., Inc. 32,300 3,022 Moody's Corp. 47,700 3,413 Morgan Stanley 94,700 7,840 Piper Jaffray Cos., Inc. (AE) 700 48 ProLogis (o) 9,900 643 Simon Property Group, Inc. (o) 1,900 217 St. Paul Travelers Cos., Inc. (The) 6,700 341 State Street Corp. 27,300 1,940 SunTrust Banks, Inc. 4,200 349 TCF Financial Corp. (N) 5,300 135 TD Ameritrade Holding Corp. (AE) 11,000 195 Torchmark Corp. 7,900 513 UBS AG 15,520 978 US Bancorp 165,500 5,892 Wachovia Corp. 26,200 1,480 Washington Mutual, Inc. (N) 70,200 3,130 Wells Fargo & Co. 155,000 5,568 Western Union Co. (The) 2,440 55 WR Berkley Corp. 1,950 65 ------------ 118,804 ------------ Health Care - 13.5% Abbott Laboratories 57,000 3,021 Abraxis BioScience, Inc. (AE)(N) 33,400 873 Aetna, Inc. 60,100 2,534 Allergan, Inc. 40,220 4,694 Amgen, Inc. (AE) 29,700 2,090 Baxter International, Inc. 18,100 899 Biomet, Inc. (AE)(N) 3,100 131 Celgene Corp. (AE) 30,220 1,622 Eli Lilly & Co. 900 49 Forest Laboratories, Inc. (AE) 12,100 679 Genentech, Inc. (AE) 77,380 6,761 Genzyme Corp. (AE) 59,700 3,924 Gilead Sciences, Inc. (AE) 46,760 3,008 GlaxoSmithKline PLC - ADR 12,300 666 Intuitive Surgical, Inc. (AE)(N) 23,970 2,359 Johnson & Johnson 21,500 1,436 Merck & Co., Inc. 59,400 2,658 Patterson Cos., Inc. (AE)(N) 29,800 1,121 Pfizer, Inc. (N) 258,400 6,780 Schering-Plough Corp. 93,100 2,328 Sepracor, Inc. (AE)(N) 16,200 924 Shire Pharmaceuticals PLC - ADR 28,360 1,800 Stryker Corp. (N) 32,800 2,032
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Teva Pharmaceutical Industries, Ltd. - ADR 101,500 3,563 Thermo Fisher Scientific, Inc. (AE) 17,870 855 Varian Medical Systems, Inc. (AE) 46,000 2,122 Watson Pharmaceuticals, Inc. (AE) 30,900 841 WellPoint, Inc. (AE) 86,290 6,763 Wyeth 57,600 2,846 Zimmer Holdings, Inc. (AE) 20,900 1,760 ------------ 71,139 ------------ Integrated Oils - 4.2% BP PLC - ADR 19,100 1,213 Chevron Corp. 40,287 2,936 ConocoPhillips 102,279 6,792 Exxon Mobil Corp. 95,946 7,110 Hess Corp. 17,300 934 Marathon Oil Corp. 18,900 1,707 Occidental Petroleum Corp. 17,400 807 Royal Dutch Shell PLC - ADR (N) 7,300 498 ------------ 21,997 ------------ Materials and Processing - 1.9% Air Products & Chemicals, Inc. 10,400 777 Alcoa, Inc. 14,900 481 Archer-Daniels-Midland Co. 35,800 1,146 Cameco Corp. 43,480 1,658 Dow Chemical Co. (The) 5,100 212 Eastman Chemical Co. 6,900 404 Masco Corp. 12,100 387 Monsanto Co. 27,650 1,523 Praxair, Inc. 9,500 599 Rohm & Haas Co. 4,800 250 Temple-Inland, Inc. 11,600 579 United States Steel Corp. 21,500 1,795 ------------ 9,811 ------------ Miscellaneous - 4.8% 3M Co. 22,200 1,649 Eaton Corp. 14,600 1,144 Fortune Brands, Inc. 2,000 167 General Electric Co. 357,320 12,881 Honeywell International, Inc. 14,600 667 ITT Corp. 45,400 2,708 Johnson Controls, Inc. 16,500 1,526 Textron, Inc. 28,570 2,662 Tyco International, Ltd. 64,100 2,044 ------------ 25,448 ------------
Tax-Managed Large Cap Fund 151 RUSSELL INVESTMENT COMPANY TAX-MANAGED LARGE CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Other Energy - 3.2% Anadarko Petroleum Corp. 18,000 788 Apache Corp. 57,900 4,225 Cameron International Corp. (AE) 26,840 1,409 Devon Energy Corp. 11,900 834 Dynegy, Inc. Class A (AE) 3,332 23 Halliburton Co. 22,500 665 Schlumberger, Ltd. 67,000 4,254 Spectra Energy Corp. 4,600 120 Valero Energy Corp. 51,500 2,795 Weatherford International, Ltd. (AE) 6,900 279 XTO Energy, Inc. 32,760 1,653 ------------ 17,045 ------------ Producer Durables - 3.6% American Tower Corp. Class A (AE) 14,600 581 Applied Materials, Inc. 99,810 1,770 Boeing Co. 27,310 2,446 Caterpillar, Inc. 3,600 231 Centex Corp. (N) 1,400 75 Crown Castle International Corp. (AE) 35,810 1,259 Deere & Co. 10,320 1,035 Emerson Electric Co. 14,600 656 Ingersoll-Rand Co., Ltd. Class A 20,400 875 KB Home 1,800 98 Lennar Corp. Class A (N) 1,200 65 Lexmark International, Inc. Class A (AE)(N) 13,800 870 Lockheed Martin Corp. 8,600 836 Northrop Grumman Corp. 12,000 851 Parker Hannifin Corp. 8,000 662 Toll Brothers, Inc. (AE)(N) 8,500 287 United Technologies Corp. 93,100 6,333 ------------ 18,930 ------------ Technology - 12.7% Akamai Technologies, Inc. (AE) 34,720 1,951 Altera Corp. (AE)(N) 46,100 924 Analog Devices, Inc. 3,000 98 Apple, Inc. (AE) 76,420 6,551 Broadcom Corp. Class A (AE) 152,340 4,863 Cisco Systems, Inc. (AE) 219,730 5,843 Computer Sciences Corp. (AE)(N) 9,000 472 Corning, Inc. (AE) 147,110 3,066 Dell, Inc. (AE) 57,120 1,385 Electronics for Imaging, Inc. (AE)(N) 15,800 364 EMC Corp. (AE) 118,600 1,659 Hewlett-Packard Co. 127,300 5,510 Ingram Micro, Inc. Class A (AE) 68,400 1,334 Intel Corp. 23,300 488 International Business Machines Corp. 81,500 8,081 Intersil Corp. Class A 1,700 40 Jabil Circuit, Inc. (N) 32,600 782
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- JDS Uniphase Corp. (AE) 22,472 400 Juniper Networks, Inc. (AE)(N) 15,400 279 Linear Technology Corp. (N) 24,400 755 Microsoft Corp. 203,100 6,268 Motorola, Inc. 27,600 548 NCR Corp. (AE) 22,300 1,057 Oracle Corp. (AE) 119,500 2,051 Qualcomm, Inc. 134,500 5,065 Raytheon Co. 9,800 509 Salesforce.com, Inc. (AE)(N) 39,652 1,738 Seagate Technology, Inc. (AE) 26,700 -- Sun Microsystems, Inc. (AE) 399,450 2,652 Sybase, Inc. (AE) 25,600 663 Texas Instruments, Inc. 36,450 1,137 Xilinx, Inc. 17,500 425 ------------ 66,958 ------------ Utilities - 6.2% Alltel Corp. 11,500 705 America Movil SA de CV Series L 73,200 3,247 American Electric Power Co., Inc. 2,800 122 AT&T, Inc. 147,906 5,566 Comcast Corp. Class A (AE)(N) 55,000 2,438 Comcast Corp. Class A (AE) 800 35 Dominion Resources, Inc. 300 25 DTE Energy Co. 2,200 102 Duke Energy Corp. 9,200 181 Edison International 26,300 1,183 Embarq Corp. 17,052 946 Exelon Corp. 26,700 1,602 FirstEnergy Corp. 900 53 NII Holdings, Inc. (AE) 23,000 1,697 Northeast Utilities 22,200 614 PG&E Corp. (N) 46,600 2,175 Pinnacle West Capital Corp. (N) 11,300 551 PPL Corp. 1,600 57 Sierra Pacific Resources (AE)(N) 31,900 543 Sprint Nextel Corp. (N) 318,056 5,671 TXU Corp. 4,400 238 Verizon Communications, Inc. 113,080 4,356 Windstream Corp. (AE) 11,890 177 Xcel Energy, Inc. (N) 23,300 544 ------------ 32,828 ------------ TOTAL COMMON STOCKS (cost $355,013) 491,619 ------------
152 Tax-Managed Large Cap Fund RUSSELL INVESTMENT COMPANY TAX-MANAGED LARGE CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 6.0% Russell Investment Company Money Market Fund 30,088,000 30,088 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 1,500 1,492 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $31,580) 31,580 ------------ OTHER SECURITIES - 8.6% Russell Investment Company Money Market Fund (X) 11,148,031 11,148 State Street Securities Lending Quality Trust (X) 33,989,571 33,990 ------------ TOTAL OTHER SECURITIES (cost $45,138) 45,138 ------------ TOTAL INVESTMENTS - 108.0% (identified cost $431,731) 568,337 OTHER ASSETS AND LIABILITIES, NET - (8.0%) (42,076) ------------ NET ASSETS - 100.0% 526,261 ============
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions S&P 500 E-Mini Index (CME) expiration date 03/07 (77) 5,556 61 S&P 500 Index (CME) expiration date 03/07 (68) 24,531 283 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 344 ===============
See accompanying notes which are an integral part of the schedules of investments. Tax-Managed Large Cap Fund 153 RUSSELL INVESTMENT COMPANY TAX-MANAGED MID & SMALL CAP FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 92.2% Auto and Transportation - 4.8% AAR Corp. (AE) 19,175 571 Airtran Holdings, Inc. (AE)(N) 48,578 538 Alexander & Baldwin, Inc. (N) 14,738 729 American Commercial Lines, Inc. (AE) 6,245 440 AMR Corp. (AE) 9,300 345 ArvinMeritor, Inc. 9,030 174 Bristow Group, Inc. (AE) 4,230 158 Con-way, Inc. 3,310 165 Fleetwood Enterprises, Inc. (AE)(N) 45,478 419 Forward Air Corp. 25,440 798 General Maritime Corp. (N) 15,686 572 Genesee & Wyoming, Inc. Class A (AE) 5,651 159 Gentex Corp. 12,260 214 HUB Group, Inc. Class A (AE) 1,390 42 Keystone Automotive Industries, Inc. (AE) 22,440 804 Landstar System, Inc. (N) 8,610 364 Modine Manufacturing Co. 7,520 197 Old Dominion Freight Line, Inc. (AE) 6,525 181 Overseas Shipholding Group, Inc. 5,700 354 RailAmerica, Inc. (AE) 9,000 146 Skywest, Inc. 6,640 180 Strattec Security Corp. (AE) 2,790 130 Tenneco, Inc. (AE)(N) 20,150 468 US Airways Group, Inc. (AE)(N) 9,140 512 Visteon Corp. (AE)(N) 70,597 565 Wabtec Corp. 41,477 1,328 Winnebago Industries, Inc. 24,296 815 ------------ 11,368 ------------ Consumer Discretionary - 19.6% 99 Cents Only Stores (AE)(N) 48,089 714 Aaron Rents, Inc. 12,529 370 Activision, Inc. (AE) 60,145 1,024 Advisory Board Co. (The) (AE) 6,307 355 Advo, Inc. 5,650 185 Aeropostale, Inc. (AE) 10,230 368 AMN Healthcare Services, Inc. (AE) 8,010 207 AnnTaylor Stores Corp. (AE) 5,470 189 Applebees International, Inc. 10,285 260 aQuantive, Inc. (AE)(N) 72,000 1,930 Arbitron, Inc. (N) 19,590 908 Big 5 Sporting Goods Corp. 10,660 259 Bright Horizons Family Solutions, Inc. (AE) 7,800 306 Callaway Golf Co. 10,970 181 Casual Male Retail Group, Inc. (AE)(N) 52,960 661 CDI Corp. 5,480 142 CEC Entertainment, Inc. (AE) 15,200 643
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Central European Distribution Corp. (AE) 12,472 368 Corinthian Colleges, Inc. (AE)(N) 50,647 661 Corrections Corp. of America (AE) 5,442 265 Cost Plus, Inc. (AE)(N) 73,458 757 CoStar Group, Inc. (AE) 11,225 533 Cox Radio, Inc. Class A (AE)(N) 48,036 752 DeVry, Inc. (N) 25,533 719 Diamond Management & Technology Consultants, Inc. Class A 60,132 750 Discovery Holding Co. Class A (AE) 4,050 67 DreamWorks Animation SKG, Inc. Class A (AE) 6,480 183 Ethan Allen Interiors, Inc. 4,530 171 Fossil, Inc. (AE) 24,186 544 FTI Consulting, Inc. (AE) 23,724 650 Getty Images, Inc. (AE) 20,105 990 Global Imaging Systems, Inc. (AE) 23,900 460 Greenfield Online, Inc. (AE) 29,790 429 Guess?, Inc. (AE)(N) 7,290 526 Harman International Industries, Inc. 3,200 303 Harte-Hanks, Inc. 6,310 171 Haverty Furniture Cos., Inc. 4,200 64 Hearst-Argyle Television, Inc. Class A 6,340 166 Iconix Brand Group, Inc. (AE)(N) 18,320 365 International Speedway Corp. Class A 3,790 198 inVentiv Health, Inc. (AE) 5,510 193 Ipass, Inc. (AE) 35,482 185 Jackson Hewitt Tax Service, Inc. 4,460 163 Jarden Corp. (AE)(N) 20,248 742 John Wiley & Sons, Inc. Class A 4,290 159 Jos A Bank Clothiers, Inc. (AE) 4,348 135 Kellwood Co. 6,400 210 Kelly Services, Inc. Class A 5,540 172 Krispy Kreme Doughnuts, Inc. (AE) 20,600 254 Lamar Advertising Co. Class A (AE) 4,000 265 Landry's Restaurants, Inc. 6,600 198 Lifetime Brands, Inc. 9,900 195 Lodgenet Entertainment Corp. (AE) 2,500 68 Matthews International Corp. Class A 15,800 641 MAXIMUS, Inc. 4,852 146 McClatchy Co. Class A 4,270 165 Men's Wearhouse, Inc. (The) 4,480 192 Monster Worldwide, Inc. (AE) 7,790 385 MPS Group, Inc. (AE) 13,170 197 MSC Industrial Direct Co., Inc. Class A 8,519 368 Nautilus, Inc. (N) 37,012 604 Navigant Consulting, Inc. (AE) 7,600 158
154 Tax-Managed Mid & Small Cap Fund RUSSELL INVESTMENT COMPANY TAX-MANAGED MID & SMALL CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Net 1 UEPS Technologies, Inc. (AE)(N) 20,730 562 NetFlix, Inc. (AE) 35,045 799 New York & Co., Inc. (AE) 9,440 138 Nutri System, Inc. (AE)(N) 5,150 227 O'Charleys, Inc. (AE) 36,553 776 Oxford Industries, Inc. 10,850 519 Parlux Fragrances, Inc. (AE) 22,170 129 PEP Boys-Manny Moe & Jack 10,820 166 PF Chang's China Bistro, Inc. (AE) 46,615 1,846 Polo Ralph Lauren Corp. Class A 6,110 501 RadioShack Corp. 10,590 234 Rare Hospitality International, Inc. (AE) 4,800 151 RC2 Corp. (AE) 14,700 581 Red Robin Gourmet Burgers, Inc. (AE) 4,800 172 Rent-A-Center, Inc. Class A (AE) 9,327 275 School Specialty, Inc. (AE)(N) 19,794 771 Scientific Games Corp. (AE)(N) 37,920 1,177 Service Corp. International 22,520 240 ServiceMaster Co. (The) 17,210 225 Shuffle Master, Inc. (AE) 59,038 1,571 Sonic Automotive, Inc. Class A 6,300 197 Station Casinos, Inc. 4,910 408 Stein Mart, Inc. 50,525 683 Strayer Education, Inc. 19,111 2,174 Sturm Ruger & Co., Inc. (AE)(N) 62,523 651 Tetra Tech, Inc. (AE) 8,797 158 Toro Co. 4,510 231 Tractor Supply Co. (AE) 7,657 385 Under Armour, Inc. Class A (AE)(N) 10,750 546 United Online, Inc. 11,006 155 Urban Outfitters, Inc. (AE) 15,015 366 USANA Health Sciences, Inc. (AE) 3,056 162 Valueclick, Inc. (AE) 77,718 1,983 VistaPrint, Ltd. (AE)(N) 15,990 689 Watson Wyatt Worldwide, Inc. Class A 5,111 226 WESCO International, Inc. (AE) 15,010 911 WMS Industries, Inc. (AE) 17,060 677 ------------ 46,251 ------------ Consumer Staples - 2.2% Coca-Cola Bottling Co. Consolidated 1,870 117 Cott Corp. (AE)(N) 42,739 606 Del Monte Foods Co. 12,160 139 Hain Celestial Group, Inc. (AE) 7,154 210 Hansen Natural Corp. (AE)(N) 8,310 317 Lance, Inc. (N) 27,309 581 Loews Corp. - Carolina Group 1,700 117 Longs Drug Stores Corp. 3,870 166 Medifast, Inc. (AE) 13,810 129 Performance Food Group Co. (AE) 7,464 221 Ralcorp Holdings, Inc. (AE) 4,120 228 Rite Aid Corp. (AE) 39,770 245
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Ruddick Corp. 7,380 205 Sensient Technologies Corp. 23,875 589 SunOpta, Inc. (AE) 100,055 1,087 Tootsie Roll Industries, Inc. 5,639 179 Weis Markets, Inc. 3,320 144 ------------ 5,280 ------------ Financial Services - 18.2% 21st Century Insurance Group 21,315 453 Advanta Corp. Class B 19,775 918 Affiliated Managers Group, Inc. (AE)(N) 4,210 469 Alabama National Bancorporation 6,100 429 Alexander's, Inc. (AE)(o) 490 212 Alfa Corp. 7,470 141 American Campus Communities, Inc. (o) 16,375 522 Argonaut Group, Inc. (AE) 14,925 501 Bank of the Ozarks, Inc. 7,890 239 BankAtlantic Bancorp, Inc. Class A 10,920 145 BioMed Realty Trust, Inc. (o) 11,275 336 BlackRock, Inc. Class A 1,400 235 Capital Southwest Corp. 1,110 147 Capital Trust, Inc. Class A (o) 3,115 155 Cedar Shopping Centers, Inc. (o)(N) 55,697 933 Central Pacific Financial Corp. 9,475 370 Checkfree Corp. (AE) 18,560 769 Chemical Financial Corp. 4,920 147 CIT Group, Inc. 6,400 377 Citizens Banking Corp. 6,840 168 Crescent Real Estate Equities Co. (o) 8,463 170 Cullen/Frost Bankers, Inc. 8,625 462 Deerfield Triarc Capital Corp. (o) 9,980 167 Delphi Financial Group Class A 7,645 302 Digital Insight Corp. (AE) 6,440 250 Dun & Bradstreet Corp. (AE) 2,200 187 Euronet Worldwide, Inc. (AE) 64,135 1,851 Federal Realty Investors Trust (o) 3,380 316 FelCor Lodging Trust, Inc. (o) 7,505 166 Fidelity National Financial, Inc. Class A 8,746 208 Fidelity National Information Services, Inc. 3,844 163 First Citizens BancShares, Inc. Class A 810 166 First Commonwealth Financial Corp. 11,810 155 First Financial Corp. 5,250 173 First Industrial Realty Trust, Inc. (o)(N) 14,137 668
Tax-Managed Mid & Small Cap Fund 155 RUSSELL INVESTMENT COMPANY TAX-MANAGED MID & SMALL CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- First Marblehead Corp. (The) (N) 12,300 669 First Midwest Bancorp, Inc. 13,603 511 First Potomac Realty Trust (o) 12,525 376 FNB Corp. 8,820 155 Fremont General Corp. (N) 37,502 510 Fulton Financial Corp. 12,030 192 GATX Corp. (N) 29,505 1,345 General Growth Properties, Inc. (o) 10,200 628 GFI Group, Inc. (AE) 360 23 Glacier Bancorp, Inc. 9,222 216 Glimcher Realty Trust (o) 5,710 161 Global Payments, Inc. 3,450 130 Greenhill & Co., Inc. (N) 5,740 430 Hanover Insurance Group, Inc. (The) 12,906 620 Health Care Property Investors, Inc. (o) 380 16 Health Care REIT, Inc. (o) 4,510 211 Healthcare Realty Trust, Inc. (o) 5,100 216 Hersha Hospitality Trust (o) 59,850 670 Highland Hospitality Corp. (o) 57,970 921 Home Properties, Inc. (o) 9,480 609 Hub International, Ltd. 15,975 523 IMPAC Mortgage Holdings, Inc. (o) 16,730 144 IndyMac Bancorp, Inc. 4,530 176 Integra Bank Corp. 6,830 169 IntercontinentalExchange, Inc. (AE) 5,090 664 International Securities Exchange Holdings, Inc. Class A 3,330 138 Investment Technology Group, Inc. (AE) 18,161 792 Investors Financial Services Corp. 5,450 255 Investors Real Estate Trust (o) 13,880 144 Kronos, Inc. (AE)(N) 37,489 1,425 LandAmerica Financial Group, Inc. Class A 2,542 160 Leucadia National Corp. 10,410 285 Mercury General Corp. 2,950 154 Mid-America Apartment Communities, Inc. (o) 14,932 898 Nasdaq Stock Market, Inc. (The) (AE)(N) 14,420 491 National Penn Bancshares, Inc. 7,784 146 Nationwide Health Properties, Inc. (o) 7,670 256 Nelnet, Inc. Class A (AE) 13,600 376 Nuveen Investments, Inc. Class A 4,430 219 Old Republic International Corp. 15,337 342 Omega Financial Corp. 6,820 226 Phoenix Cos., Inc. (The) 10,690 161 Placer Sierra Bancshares 6,850 188 PMI Group, Inc. (The) 4,810 230 Popular, Inc. 13,900 254 Post Properties, Inc. (o) 8,555 415 Provident Bankshares Corp. 4,746 168 Radian Group, Inc. 3,442 207
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Raymond James Financial, Inc. 7,908 252 Reinsurance Group of America, Inc. 3,610 210 RLI Corp. 9,300 515 Selective Insurance Group, Inc. 3,020 155 Signature Bank (AE) 20,750 687 Sky Financial Group, Inc. 12,060 342 South Financial Group, Inc. (The) 6,740 174 Sovereign Bancorp, Inc. 11,963 295 State Auto Financial Corp. 4,260 137 Sterling Financial Corp. 17,615 584 Sun Communities, Inc. (o) 14,455 457 TD Ameritrade Holding Corp. (AE) 13,900 246 TD Banknorth, Inc. 4,931 159 Texas Capital Bancshares, Inc. (AE) 72,230 1,406 Triad Guaranty, Inc. (AE) 6,675 344 UnionBanCal Corp. 3,300 213 United Bankshares, Inc. 13,300 486 United Fire & Casualty Co. 18,825 637 Valley National Bancorp 10,451 268 Vornado Realty Trust (o) 5,230 640 W Holding Co., Inc. 10,500 55 Waddell & Reed Financial, Inc. Class A 28,725 737 Washington Real Estate Investment Trust (o) 7,320 313 Westamerica Bancorporation (N) 11,237 560 Wintrust Financial Corp. 35,498 1,625 WR Berkley Corp. 2,719 90 ------------ 42,872 ------------ Health Care - 11.4% Abraxis BioScience, Inc. (AE) 6,350 166 Affymetrix, Inc. (AE) 25,442 635 Align Technology, Inc. (AE) 23,170 383 Amedisys, Inc. (AE) 4,667 151 Anadys Pharmaceuticals, Inc. (AE) 28,270 137 Arrow International, Inc. 5,150 173 Celgene Corp. (AE) 11,230 603 Charles River Laboratories International, Inc. (AE) 4,618 208 Chattem, Inc. (AE)(N) 15,870 912 Cooper Cos., Inc. (The) 4,379 209 Covance, Inc. (AE) 7,400 456 Coventry Health Care, Inc. (AE) 8,550 441 Cytyc Corp. (AE) 13,141 380 Datascope Corp. 4,090 151 Diversa Corp. (AE)(N) 38,216 390 Durect Corp. (AE) 69,949 309
156 Tax-Managed Mid & Small Cap Fund RUSSELL INVESTMENT COMPANY TAX-MANAGED MID & SMALL CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Emdeon Corp. (AE) 17,940 256 Endo Pharmaceuticals Holdings, Inc. (AE) 15,310 470 Enzon Pharmaceuticals, Inc. (AE) 15,400 137 Gentiva Health Services, Inc. (AE)(N) 68,844 1,363 Haemonetics Corp. (AE)(N) 14,586 704 Henry Schein, Inc. (AE)(N) 27,346 1,388 Idexx Laboratories, Inc. (AE) 14,778 1,268 ImClone Systems, Inc. (AE) 5,990 177 Intuitive Surgical, Inc. (AE)(N) 3,350 330 Invitrogen Corp. (AE) 23,451 1,436 KV Pharmaceutical Co. (AE)(N) 33,808 853 Kyphon, Inc. (AE) 8,130 380 LifePoint Hospitals, Inc. (AE)(N) 11,174 380 Ligand Pharmaceuticals, Inc. Class B (AE) 13,900 181 Lincare Holdings, Inc. (AE) 4,340 171 Matria Healthcare, Inc. (AE)(N) 29,731 822 Medicis Pharmaceutical Corp. Class A (N) 13,960 530 Millennium Pharmaceuticals, Inc. (AE) 9,600 107 Northfield Laboratories, Inc. (AE) 32,290 128 NuVasive, Inc. (AE) 9,090 220 Omnicare, Inc. 3,000 121 Omnicell, Inc. (AE) 5,210 108 OSI Pharmaceuticals, Inc. (AE) 3,244 110 Par Pharmaceutical Cos., Inc. (AE)(N) 35,815 945 Pharmaceutical Product Development, Inc. (N) 19,830 684 PolyMedica Corp. (N) 21,885 876 PSS World Medical, Inc. (AE)(N) 20,897 418 Psychiatric Solutions, Inc. (AE) 16,050 625 Quality Systems, Inc. 12,140 515 Renovis, Inc. (AE) 39,050 135 Respironics, Inc. (AE) 4,650 198 Stericycle, Inc. (AE) 12,078 930 Sunrise Senior Living, Inc. (AE)(N) 19,839 709 SurModics, Inc. (AE) 3,873 139 Symmetry Medical, Inc. (AE) 26,300 362 Techne Corp. (AE) 3,040 176 Tenet Healthcare Corp. (AE) 28,190 199 US Physical Therapy, Inc. (AE) 30,209 426 Varian Medical Systems, Inc. (AE) 3,900 180 Vertex Pharmaceuticals, Inc. (AE)(N) 9,240 327 WebMD Health Corp. Class A (AE) 2,800 138 WellCare Health Plans, Inc. (AE) 4,120 319 West Pharmaceutical Services, Inc. (N) 13,860 673 Zoll Medical Corp. (AE) 5,380 337 ------------ 26,655 ------------ Materials and Processing - 6.8% Acuity Brands, Inc. (N) 13,885 806 Allegheny Technologies, Inc. 9,180 950
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Apogee Enterprises, Inc. 50,100 953 Arch Chemicals, Inc. 5,330 180 Armor Holdings, Inc. (AE) 6,890 417 Beacon Roofing Supply, Inc. (AE) 7,740 161 Brush Engineered Materials, Inc. (AE)(N) 20,231 669 Buckeye Technologies, Inc. (AE) 12,300 147 Building Materials Holding Corp. 6,370 152 Commercial Metals Co. (N) 23,364 633 Compx International, Inc. 7,190 113 Crown Holdings, Inc. (AE) 18,150 401 Cytec Industries, Inc. 6,450 376 EnerSys (AE) 8,900 145 FMC Corp. 3,780 294 GrafTech International, Ltd. (AE) 26,820 218 Graphic Packaging Corp. (AE) 31,060 150 Griffon Corp. (AE) 27,575 710 Hercules, Inc. (AE) 30,775 604 Huntsman Corp. (AE) 9,340 195 Interface, Inc. Class A (AE) 9,570 146 Interline Brands, Inc. (AE) 6,550 149 Jacobs Engineering Group, Inc. (AE) 13,317 1,206 Lennox International, Inc. 5,780 175 LSI Industries, Inc. 9,615 184 Martin Marietta Materials, Inc. (N) 3,750 433 Metal Management, Inc. 130 5 Minerals Technologies, Inc. 2,710 157 Modtech Holdings, Inc. (AE)(N) 54,416 254 PAN American Silver Corp. (AE)(N) 14,080 400 Precision Castparts Corp. 5,000 444 Rogers Corp. (AE) 3,780 195 Royal Gold, Inc. 4,580 148 RPM International, Inc. 10,031 233 Sonoco Products Co. 6,860 264 Southern Copper Corp. 8,000 500 Spartech Corp. (N) 36,331 1,018 St. Joe Co. (The) 4,080 236 Standard Register Co. (The) 20,000 253 Texas Industries, Inc. 7,000 514 Universal Forest Products, Inc. 3,500 171 USG Corp. (AE) 5,802 311 Washington Group International, Inc. (AE) 2,906 166 Wausau Paper Corp. 11,530 164 ------------ 16,000 ------------
Tax-Managed Mid & Small Cap Fund 157 RUSSELL INVESTMENT COMPANY TAX-MANAGED MID & SMALL CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Miscellaneous - 0.5% Carlisle Cos., Inc. 2,811 229 Foster Wheeler, Ltd. (AE) 9,985 534 Lancaster Colony Corp. 4,950 216 Walter Industries, Inc. 7,763 219 ------------ 1,198 ------------ Other Energy - 5.4% Arch Coal, Inc. 7,800 232 Basic Energy Services, Inc. (AE) 18,000 427 Cameron International Corp. (AE) 17,377 912 Encore Acquisition Co. (AE)(N) 25,202 654 Forest Oil Corp. (AE)(N) 16,320 521 Global Industries, Ltd. (AE) 36,291 489 Grant Prideco, Inc. (AE) 3,900 153 Grey Wolf, Inc. (AE) 24,910 170 Hanover Compressor Co. (AE)(N) 40,148 777 Helix Energy Solutions Group, Inc. (AE) 28,200 907 Hornbeck Offshore Services, Inc. (AE) 5,640 155 Houston Exploration Co. (AE) 5,230 274 Lufkin Industries, Inc. 2,630 157 Matrix Service Co. (AE) 42,693 786 Oil States International, Inc. (AE) 4,340 125 Parallel Petroleum Corp. (AE)(N) 16,960 334 Parker Drilling Co. (AE) 19,020 176 Peabody Energy Corp. 13,600 555 Plains Exploration & Production Co. (AE) 9,447 456 Range Resources Corp. (N) 19,375 595 Southwestern Energy Co. (AE) 16,670 641 Superior Energy Services, Inc. (AE) 18,100 549 Tesoro Corp. 9,620 793 Todco Class A (AE) 14,125 489 W-H Energy Services, Inc. (AE) 9,800 445 Whiting Petroleum Corp. (AE)(N) 14,007 638 XTO Energy, Inc. 7,253 366 ------------ 12,776 ------------ Producer Durables - 8.0% ACCO Brands Corp. (AE) 32,625 787 Applied Industrial Technologies, Inc. 8,560 210 ASV, Inc. (AE) 25,100 425 BE Aerospace, Inc. (AE)(N) 25,754 767 C&D Technologies, Inc. (N) 107,017 578 Champion Enterprises, Inc. (AE)(N) 71,703 589 Crane Co. 4,575 178 Crown Castle International Corp. (AE) 15,050 529 Cymer, Inc. (AE)(N) 12,400 524 Dionex Corp. (AE) 5,700 339 Donaldson Co., Inc. 19,084 672 EnPro Industries, Inc. (AE) 17,650 583 Entegris, Inc. (AE) 14,830 159
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Esterline Technologies Corp. (AE)(N) 15,054 602 Federal Signal Corp. (N) 44,610 733 General Cable Corp. (AE)(N) 33,975 1,465 IDEX Corp. 10,728 557 Kadant, Inc. (AE) 15,175 415 Kennametal, Inc. 19,535 1,207 Knoll, Inc. 40,675 894 Lam Research Corp. (AE) 3,700 170 Lennar Corp. Class A 6,700 364 Littelfuse, Inc. (AE) 5,230 164 Mastec, Inc. (AE) 40,024 450 MDC Holdings, Inc. 4,507 263 Middleby Corp. (AE) 1,370 153 Mueller Water Products, Inc. Class A 12,827 174 Orbital Sciences Corp. (AE) 11,551 197 Pentair, Inc. 7,380 230 Polycom, Inc. (AE)(N) 15,190 511 Power-One, Inc. (AE) 22,100 163 Robbins & Myers, Inc. (N) 24,518 1,066 Roper Industries, Inc. (N) 6,900 358 SBA Communications Corp. Class A (AE)(N) 16,800 499 TAL International Group, Inc. 20,050 529 Terex Corp. (AE) 13,280 756 Varian Semiconductor Equipment Associates, Inc. (AE)(N) 10,272 423 WCI Communities, Inc. (AE) 6,673 144 ------------ 18,827 ------------ Technology - 11.1% 3Com Corp. (AE) 40,250 157 Actel Corp. (AE) 8,300 148 Agere Systems, Inc. Class A (AE) 15,016 302 Akamai Technologies, Inc. (AE)(N) 17,370 976 Altiris, Inc. (AE) 12,160 398 American Science & Engineering, Inc. (AE)(N) 12,104 662 AMIS Holdings, Inc. (AE) 13,150 136 Anixter International, Inc. (AE) 18,430 1,019 Ansys, Inc. (AE) 8,760 437 Avnet, Inc. (AE) 7,710 239 BEA Systems, Inc. (AE) 18,550 229 Benchmark Electronics, Inc. (AE) 27,562 624 Black Box Corp. 3,611 148 BMC Software, Inc. (AE) 170 6 CACI International, Inc. Class A (AE)(N) 11,987 564 Cbeyond, Inc. (AE) 2,070 62
158 Tax-Managed Mid & Small Cap Fund RUSSELL INVESTMENT COMPANY TAX-MANAGED MID & SMALL CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Cognizant Technology Solutions Corp. Class A (AE) 3,000 256 CSG Systems International, Inc. (AE) 6,273 157 DRS Technologies, Inc. (N) 12,236 678 Electronics for Imaging, Inc. (AE) 37,550 866 Emulex Corp. (AE) 53,283 946 Excel Technology, Inc. (AE) 2,540 70 F5 Networks, Inc. (AE)(N) 6,740 482 Fairchild Semiconductor International, Inc. Class A (AE) 24,800 442 Formfactor, Inc. (AE) 4,524 184 GTSI Corp. (AE)(N) 5,171 48 Harris Corp. 3,880 197 Hutchinson Technology, Inc. (AE) 17,425 387 Informatica Corp. (AE) 144,939 1,820 Integrated Device Technology, Inc. (AE)(N) 22,660 343 Intersil Corp. Class A 5,200 123 JDS Uniphase Corp. (AE)(N) 22,845 406 Kemet Corp. (AE) 20,130 152 Lattice Semiconductor Corp. (AE) 23,670 139 Macrovision Corp. (AE) 76,055 1,881 Mantech International Corp. Class A (AE)(N) 23,845 814 McAfee, Inc. (AE) 3,400 99 Microchip Technology, Inc. 13,250 461 MicroStrategy, Inc. Class A (AE) 1,320 160 NAVTEQ Corp. (AE) 18,175 645 ON Semiconductor Corp. (AE) 23,600 197 Parametric Technology Corp. (AE) 43,460 861 Perot Systems Corp. Class A (AE) 47,375 774 Progress Software Corp. (AE) 32,575 925 Riverbed Technology, Inc. (AE)(N) 16,700 511 Salesforce.com, Inc. (AE)(N) 8,270 362 SanDisk Corp. (AE) 3,510 141 Sirf Technology Holdings, Inc. (AE) 14,680 431 Skyworks Solutions, Inc. (AE) 43,350 285 Sonus Networks, Inc. (AE)(N) 55,950 405 SRA International, Inc. Class A (AE) 5,390 136 Sycamore Networks, Inc. (AE) 39,040 146 Syntel, Inc. 6,241 205 Utstarcom, Inc. (AE) 18,070 160 Varian, Inc. (AE)(N) 26,278 1,406 Vignette Corp. (AE) 8,677 155 Zebra Technologies Corp. Class A (AE) 37,866 1,313 ------------ 26,276 ------------ Utilities - 4.2% Alaska Communications Systems Group, Inc. (N) 95,042 1,536 Black Hills Corp. 10,150 376 Cablevision Systems Corp. Class A 4,300 130 Cascade Natural Gas Corp. 5,700 148
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Central Vermont Public Service Corp. 6,600 165 Cleco Corp. 17,413 445 El Paso Electric Co. (AE) 28,555 694 Empire District Electric Co. (The) 7,200 171 Great Plains Energy, Inc. 6,400 201 Level 3 Communications, Inc. (AE) 84,925 527 NeuStar, Inc. Class A (AE) 63,718 1,968 New Jersey Resources Corp. 4,830 225 NII Holdings, Inc. (AE) 4,700 347 Northwest Natural Gas Co. 3,850 157 NSTAR 7,386 247 Otter Tail Corp. 5,140 166 PNM Resources, Inc. 17,350 529 Puget Energy, Inc. 7,890 194 Questar Corp. 2,710 220 SCANA Corp. 8,870 361 Southwest Gas Corp. 7,865 309 Telephone & Data Systems, Inc. 4,490 252 Wisconsin Energy Corp. 11,150 519 ------------ 9,887 ------------ TOTAL COMMON STOCKS (cost $169,599) 217,390 ------------ SHORT-TERM INVESTMENTS - 7.6% Russell Investment Company Money Market Fund 16,808,000 16,808 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 1,000 994 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $17,802) 17,802 ------------
Tax-Managed Mid & Small Cap Fund 159 RUSSELL INVESTMENT COMPANY TAX-MANAGED MID & SMALL CAP FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- OTHER SECURITIES - 43.0% Russell Investment Company Money Market Fund (X) 25,037,335 25,037 State Street Securities Lending Quality Trust (X) 76,337,095 76,337 ------------ OTHER SECURITIES (cost $101,374) 101,374 ------------ TOTAL INVESTMENTS - 142.8% (identified cost $288,775) 336,566 OTHER ASSETS AND LIABILITIES, NET - (42.8%) (100,838) ------------ NET ASSETS - 100.0% 235,728 ============
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Russell 2000 Mini Index (CME) expiration date 03/07 (197) 15,847 190 S&P 500 Index (CME) expiration date 03/07 (6) 2,165 25 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 215 ===============
See accompanying notes which are an integral part of the schedules of investments. 160 Tax-Managed Mid & Small Cap Fund RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 95.8% Auto and Transportation - 4.1% Arctic Cat, Inc. (N) 4,800 89 CH Robinson Worldwide, Inc. (N) 12,120 643 Expeditors International Washington, Inc. 32,000 1,366 FedEx Corp. (N) 12,350 1,363 Fuel Systems Solutions, Inc. (AE)(N) 7,100 158 Grupo Aeroportuario del Centro Norte Sab de CV - ADR (AE) 3,600 87 Grupo Aeroportuario del Sureste SAB de CV - ADR 2,000 87 Keystone Automotive Industries, Inc. (AE) 2,900 104 Union Pacific Corp. 3,600 364 United Parcel Service, Inc. Class B 40,900 2,956 US Airways Group, Inc. (AE)(N) 6,164 345 ------------ 7,562 ------------ Consumer Discretionary - 20.7% Activision, Inc. (AE)(N) 7,300 124 Advance Auto Parts, Inc. 6,200 235 AFC Enterprises (AE)(N) 5,100 85 AMN Healthcare Services, Inc. (AE)(N) 6,300 163 Bare Escentuals, Inc. (AE)(N) 1,700 62 Bright Horizons Family Solutions, Inc. (AE)(N) 2,000 78 Buca, Inc. (AE)(N) 19,900 113 Buffalo Wild Wings, Inc. (AE)(N) 2,700 137 Casual Male Retail Group, Inc. (AE) 12,000 150 Coach, Inc. (AE) 18,450 846 Costco Wholesale Corp. 12,100 680 Crown Media Holdings, Inc. Class A (AE)(N) 12,100 49 Deckers Outdoor Corp. (AE)(N) 3,400 198 dELIA*s, Inc. (AE)(N) 10,100 104 Design Within Reach, Inc. (AE)(N) 14,900 81 DeVry, Inc. (N) 5,000 141 Diamond Management & Technology Consultants, Inc. Class A (N) 10,800 135 Dolby Laboratories, Inc. Class A (AE) 3,500 117 Dollar General Corp. (N) 13,000 220 eBay, Inc. (AE) 106,200 3,440 Electronic Arts, Inc. (AE) 53,070 2,653 Ezcorp, Inc. Class A (AE)(N) 9,000 151 Gap, Inc. (The) (N) 16,000 307 Google, Inc. Class A (AE) 11,589 5,810 Gray Television, Inc. (N) 12,400 111 Great Wolf Resorts, Inc. (AE)(N) 12,000 169 Houston Wire & Cable Co. (AE)(N) 7,700 182 Iconix Brand Group, Inc. (AE)(N) 6,082 121 International Game Technology 60,380 2,624 ITT Educational Services, Inc. (AE)(N) 1,900 147
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Las Vegas Sands Corp. (AE) 10,540 1,097 Leapfrog Enterprises, Inc. Class A (AE)(N) 22,200 238 LIFE TIME FITNESS, INC. (AE)(N) 1,800 98 Local.com Corp. (AE)(N) 9,800 40 Lowe's Cos., Inc. 44,300 1,493 MGM Mirage (AE) 25,400 1,777 Multimedia Games, Inc. (AE)(N) 11,100 115 New Frontier Media, Inc. 10,600 97 News Corp. Class A 61,580 1,432 On Assignment, Inc. (AE)(N) 5,400 70 Parlux Fragrances, Inc. (AE)(N) 19,300 112 Revlon, Inc. Class A (AE)(N) 75,500 97 Sears Holdings Corp. (AE)(N) 1,900 336 Sharper Image Corp. (AE)(N) 7,600 74 Staples, Inc. 156,400 4,023 Starbucks Corp. (AE) 59,716 2,086 Starwood Hotels & Resorts Worldwide, Inc. (o) 10,980 687 Take-Two Interactive Software, Inc. (AE)(N) 3,600 63 Target Corp. 2,768 170 TeleTech Holdings, Inc. (AE)(N) 3,400 92 Time Warner, Inc. 19,800 433 Topps Co., Inc. (The) (N) 14,900 147 Urban Outfitters, Inc. (AE)(N) 28,600 698 Valuevision Media, Inc. Class A (AE)(N) 9,700 119 Viacom, Inc. Class A (AE) 8,700 354 Wal-Mart Stores, Inc. 42,800 2,041 WebSideStory, Inc. (AE)(N) 10,800 155 Weight Watchers International, Inc. 21,060 1,138 WMS Industries, Inc. (AE)(N) 1,700 67 ------------ 38,782 ------------ Consumer Staples - 9.8% Altria Group, Inc. 9,760 853 Boston Beer Co., Inc. Class A (AE)(N) 2,600 91 Coca-Cola Co. (The) 26,815 1,284 Colgate-Palmolive Co. 18,900 1,291 PepsiCo, Inc. 74,821 4,881 Procter & Gamble Co. 80,060 5,193 Sysco Corp. 33,300 1,151 Walgreen Co. 49,000 2,220 Whole Foods Market, Inc. 14,900 644
Select Growth Fund 161 RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Wild Oats Markets, Inc. (AE)(N) 10,200 148 WM Wrigley Jr Co. (N) 11,110 572 ------------ 18,328 ------------ Financial Services - 11.3% Advent Software, Inc. (AE)(N) 7,000 250 American Express Co. 12,200 710 American International Group, Inc. 18,048 1,235 Automatic Data Processing, Inc. 36,600 1,747 Charles Schwab Corp. (The) 48,860 924 Chicago Mercantile Exchange Holdings, Inc. Class A 5,480 3,087 First Cash Financial Services, Inc. (AE)(N) 2,700 63 GFI Group, Inc. (AE)(N) 1,000 64 Goldman Sachs Group, Inc. 6,810 1,445 HealthExtras, Inc. (AE)(N) 4,400 113 Hypercom Corp. (AE)(N) 16,700 101 IntercontinentalExchange, Inc. (AE)(N) 17,000 2,219 Merrill Lynch & Co., Inc. 4,500 421 MGIC Investment Corp. (N) 3,200 198 Moody's Corp. 22,000 1,574 Morgan Stanley 4,600 381 Paychex, Inc. (N) 48,600 1,945 Pico Holdings, Inc. (AE)(N) 3,800 163 PMI Group, Inc. (The) (N) 4,900 234 State Street Corp. 30,160 2,143 UBS AG 13,120 827 Western Union Co. (The) 59,200 1,323 ------------ 21,167 ------------ Health Care - 17.5% Abbott Laboratories 5,600 297 Albany Molecular Research, Inc. (AE)(N) 7,900 80 Allergan, Inc. 29,390 3,430 Amedisys, Inc. (AE)(N) 2,666 86 American Medical Systems Holdings, Inc. (AE)(N) 4,300 86 Amgen, Inc. (AE) 23,446 1,650 Applera Corp. - Celera Group (AE) 8,700 138 Baxter International, Inc. 41,210 2,046 Biogen Idec, Inc. (AE) 8,100 392 Boston Scientific Corp. (AE)(N) 9,443 174 Bruker BioSciences Corp. (AE) 20,400 152 Celgene Corp. (AE)(N) 27,283 1,465 Cerner Corp. (AE)(N) 2,500 112 Charles River Laboratories International, Inc. (AE) 2,500 112 Cholestech Corp. (AE)(N) 5,400 91 Covance, Inc. (AE) 1,400 86 Cutera, Inc. (AE)(N) 2,400 68 DaVita, Inc. (AE)(N) 2,600 142
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- DOV Pharmaceutical, Inc. (AE)(N) 40,600 18 Genentech, Inc. (AE) 30,200 2,639 Genzyme Corp. (AE) 21,500 1,413 Gilead Sciences, Inc. (AE) 35,285 2,269 GTx, Inc. (AE)(N) 9,100 169 Healthcare Services Group (N) 4,100 119 Healthways, Inc. (AE)(N) 1,100 50 Hemispherx Biopharma, Inc. (AE)(N) 19,200 40 Henry Schein, Inc. (AE)(N) 1,900 96 Humana, Inc. (AE) 3,075 171 Illumina, Inc. (AE)(N) 1,300 53 Intralase Corp. (AE)(N) 5,200 128 Inverness Medical Innovations, Inc. (AE)(N) 2,600 107 Johnson & Johnson 24,100 1,610 Medco Health Solutions, Inc. (AE) 12,205 723 Medtronic, Inc. 24,978 1,335 Merck & Co., Inc. 7,590 340 Neose Technologies, Inc. (AE) 16,300 36 NuVasive, Inc. (AE)(N) 3,700 90 Oxigene, Inc. (AE)(N) 10,400 45 Palatin Technologies, Inc. (AE)(N) 18,700 44 Phase Forward, Inc. (AE) 4,100 55 PolyMedica Corp. (N) 1,500 60 PSS World Medical, Inc. (AE)(N) 2,900 58 Schering-Plough Corp. 7,500 187 Sepracor, Inc. (AE)(N) 2,800 160 Stryker Corp. 18,000 1,115 Tercica, Inc. (AE)(N) 17,800 92 Teva Pharmaceutical Industries, Ltd. - ADR 35,100 1,232 Thermo Fisher Scientific, Inc. (AE) 36,120 1,728 UnitedHealth Group, Inc. 67,980 3,553 Ventana Medical Systems, Inc. (AE) 1,900 80 WellPoint, Inc. (AE) 3,061 240 Wyeth 3,900 193 Zimmer Holdings, Inc. (AE) 21,000 1,769 Zoll Medical Corp. (AE)(N) 2,500 157 ------------ 32,781 ------------ Materials and Processing - 2.5% Alcoa, Inc. (N) 6,900 223 Archer-Daniels-Midland Co. 20,335 651 Caraustar Industries, Inc. (AE)(N) 15,300 122 EI Du Pont de Nemours & Co. 4,200 208 Harsco Corp. 1,300 112 Housevalues, Inc. (AE)(N) 20,100 105
162 Select Growth Fund RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Insituform Technologies, Inc. Class A (AE) 4,400 123 Monsanto Co. 24,630 1,357 Praxair, Inc. 26,000 1,639 SAIC, Inc. (AE)(N) 5,900 109 Sequenom, Inc. (AE)(N) 18,800 87 ------------ 4,736 ------------ Miscellaneous - 3.3% 3M Co. 3,000 223 Foster Wheeler, Ltd. (AE)(N) 2,900 155 General Electric Co. 153,028 5,517 Textron, Inc. 3,461 322 ------------ 6,217 ------------ Other Energy - 1.5% Baker Hughes, Inc. (N) 4,100 283 Cameron International Corp. (AE)(N) 4,476 235 ENSCO International, Inc. 2,200 112 Foundation Coal Holdings, Inc. (N) 2,900 96 Hercules Offshore, Inc. (AE)(N) 3,100 82 Petroquest Energy, Inc. (AE)(N) 11,300 147 Range Resources Corp. (N) 10,937 336 Schlumberger, Ltd. 5,194 330 Weatherford International, Ltd. (AE) 16,520 667 XTO Energy, Inc. 11,950 603 ------------ 2,891 ------------ Producer Durables - 3.4% American Tower Corp. Class A (AE)(N) 22,890 912 Arris Group, Inc. (AE) 4,300 61 Baldor Electric Co. (N) 2,600 92 Boeing Co. 4,200 376 C-COR, Inc. (AE)(N) 10,500 144 CalAmp Corp. (AE)(N) 13,100 104 Cohu, Inc. (N) 6,800 136 Credence Systems Corp. (AE)(N) 32,900 160 Crown Castle International Corp. (AE)(N) 3,500 123 Deere & Co. 9,290 932 Distributed Energy Systems Corp. (AE)(N) 25,700 81 Entegris, Inc. (AE)(N) 11,027 118 ESCO Technologies, Inc. (AE)(N) 2,200 105 FARO Technologies, Inc. (AE) 6,600 164 Goodrich Corp. (N) 5,600 275 Intevac, Inc. (AE)(N) 6,922 153 Kla-Tencor Corp. 29,800 1,467 L-1 Identity Solutions, Inc. (AE)(N) 5,500 79 Polycom, Inc. (AE)(N) 7,000 235 Radyne Corp. (AE)(N) 11,300 118 SBA Communications Corp. Class A (AE)(N) 6,500 193
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- United Technologies Corp. 4,622 314 Zygo Corp. (AE)(N) 6,200 95 ------------ 6,437 ------------ Technology - 20.8% Actuate Corp. (AE)(N) 16,200 85 Akamai Technologies, Inc. (AE)(N) 1,200 67 Amdocs, Ltd. (AE) 4,500 156 Apple, Inc. (AE) 25,514 2,187 Applied Micro Circuits Corp. (AE)(N) 29,200 100 Art Technology Group, Inc. (AE)(N) 46,100 118 AsiaInfo Holdings, Inc. (AE)(N) 19,100 150 Aspen Technology, Inc. (AE)(N) 5,400 55 Avistar Communications Corp. (AE) 48,900 83 Bottomline Technologies, Inc. (AE) 10,900 143 Broadcom Corp. Class A (AE) 56,950 1,818 Captaris, Inc. (AE)(N) 15,100 133 Centillium Communications, Inc. (AE) 26,526 56 Cisco Systems, Inc. (AE) 119,020 3,165 Citrix Systems, Inc. (AE)(N) 2,900 92 Corning, Inc. (AE) 35,300 736 Daktronics, Inc. (N) 3,500 121 DealerTrack Holdings, Inc. (AE) 3,500 97 Dell, Inc. (AE) 57,680 1,399 Digital River, Inc. (AE)(N) 1,600 82 Ditech Networks, Inc. (AE)(N) 13,000 93 Equinix, Inc. (AE)(N) 2,000 168 Gartner, Inc. (AE)(N) 17,000 372 Harmonic, Inc. (AE)(N) 22,700 205 Hewlett-Packard Co. 11,700 506 Integrated Device Technology, Inc. (AE)(N) 9,700 147 Intuit, Inc. (AE) 54,600 1,717 Iomega Corp. (AE)(N) 17,400 68 JDS Uniphase Corp. (AE)(N) 13,549 241 LCC International, Inc. Class A (AE)(N) 28,500 115 Marvell Technology Group, Ltd. (AE) 8,115 148 Microsoft Corp. 119,142 3,677 Napster, Inc. (AE)(N) 23,400 94 National Semiconductor Corp. 24,900 576 Network Appliance, Inc. (AE) 34,290 1,289 Newport Corp. (AE)(N) 9,000 180 Novell, Inc. (AE) 8,600 62 Nuance Communications, Inc. (AE)(N) 16,600 191 Nvidia Corp. (AE) 33,080 1,014 Opsware, Inc. (AE)(N) 10,900 87 PMC - Sierra, Inc. (AE)(N) 17,900 113
Select Growth Fund 163 RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- QLogic Corp. (AE)(N) 5,800 106 Qualcomm, Inc. 120,200 4,527 Research In Motion, Ltd. (AE) 11,830 1,512 Safeguard Scientifics, Inc. (AE)(N) 35,500 94 Salesforce.com, Inc. (AE)(N) 2,100 92 SanDisk Corp. (AE) 67,530 2,715 SAP AG - ADR 12,000 556 Seachange International, Inc. (AE)(N) 18,400 184 Seagate Technology (N) 75,000 2,032 SimpleTech, Inc. (AE)(N) 17,300 189 Standard Microsystems Corp. (AE)(N) 8,000 223 Sun Microsystems, Inc. (AE) 221,100 1,468 Techwell, Inc. (AE)(N) 9,800 168 Texas Instruments, Inc. 72,350 2,257 Transaction Systems Architects, Inc. (AE)(N) 4,200 152 Transwitch Corp. (AE) 49,800 68 Trizetto Group, Inc. (The) (AE)(N) 6,200 128 Ultimate Software Group, Inc. (AE)(N) 8,200 200 Varian, Inc. (AE)(N) 1,400 75 VeriFone Holdings, Inc. (AE)(N) 2,900 116 Vignette Corp. (AE)(N) 7,800 140 Zhone Technologies, Inc. (AE)(N) 63,700 75 ------------ 38,983 ------------ Utilities - 0.9% Comcast Corp. Class A (AE) 1,980 88 Leap Wireless International, Inc. (AE) 3,100 203 Level 3 Communications, Inc. (AE)(N) 35,100 218 MDU Communications International, Inc. (AE) 29,200 22 NII Holdings, Inc. (AE) 15,200 1,123 ------------ 1,654 ------------ TOTAL COMMON STOCKS (cost $153,680) 179,538 ------------ SHORT-TERM INVESTMENTS - 4.3% Russell Investment Company Money Market Fund 7,109,000 7,109 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 1,000 994 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $8,103) 8,103 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- OTHER SECURITIES - 24.7% Russell Investment Company Money Market Fund (X) 11,450,076 11,450 State Street Securities Lending Quality Trust (X) 34,910,486 34,910 ------------ TOTAL OTHER SECURITIES (cost $46,360) 46,360 ------------ TOTAL INVESTMENTS - 124.8% (identified cost $208,143) 234,001 OTHER ASSETS AND LIABILITIES, NET - (24.8%) (46,436) ------------ NET ASSETS - 100.0% 187,565 ============
See accompanying notes which are an integral part of the schedules of investments. 164 Select Growth Fund RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Nasdaq 100 Index (CME) expiration date 03/07 (13) 2,343 (32) Russell 1000 Growth Index expiration date 03/07 (11) 3,136 34 S&P 500 E-Mini Index (CME) expiration date 03/07 (12) 866 8 S&P 500 Index (CME) expiration date 03/07 (5) 1,804 11 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 21 ===============
See accompanying notes which are an integral part of the schedules of investments. Select Growth Fund 165 RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 93.5% Auto and Transportation - 2.5% Airtran Holdings, Inc. (AE)(N) 36,138 400 Alexander & Baldwin, Inc. (N) 10,964 542 Burlington Northern Santa Fe Corp. 15,220 1,223 Continental AG - ADR 16,300 1,976 Fleetwood Enterprises, Inc. (AE)(N) 33,672 310 General Maritime Corp. (N) 11,670 426 Keystone Automotive Industries, Inc. (AE)(N) 16,712 599 Norfolk Southern Corp. 15,550 772 Polaris Industries, Inc. (N) 17,700 828 Tenneco, Inc. (AE) 15,006 349 TNT NV - ADR 40,700 1,848 United Parcel Service, Inc. Class B 14,700 1,062 Visteon Corp. (AE)(N) 52,574 421 Wabtec Corp. 19,550 626 ------------ 11,382 ------------ Consumer Discretionary - 9.1% 99 Cents Only Stores (AE)(N) 35,775 531 Accenture, Ltd. Class A 33,760 1,274 Arbitron, Inc. (N) 14,574 676 Black & Decker Corp. 8,400 733 Brinker International, Inc. 22,500 710 Casual Male Retail Group, Inc. (AE) 39,398 492 Corinthian Colleges, Inc. (AE)(N) 37,678 492 Cost Plus, Inc. (AE)(N) 54,704 563 Cox Radio, Inc. Class A (AE)(N) 23,751 372 DeVry, Inc. (N) 19,015 535 Diamond Management & Technology Consultants, Inc. Class A (N) 44,735 558 Expedia, Inc. (AE) 27,400 588 Family Dollar Stores, Inc. 27,000 875 Federated Department Stores, Inc. 34,010 1,411 Foot Locker, Inc. 49,900 1,120 Gap, Inc. (The) 59,400 1,139 Grupo Televisa SA - ADR 34,900 1,028 Hanesbrands, Inc. (AE) 3,271 84 Hasbro, Inc. (N) 58,570 1,663 Home Depot, Inc. 29,600 1,206 InterActiveCorp (AE) 13,800 530 Jarden Corp. (AE)(N) 15,064 552 Kimberly-Clark Corp. 34,500 2,394 Liberty Media Corp. - Interactive (AE) 57,000 1,389 Liberty Media Holding Corp. Series A (AE) 24,900 2,547 Limited Brands, Inc. 63,000 1,760 McDonald's Corp. 60,000 2,661 Nautilus, Inc. 27,563 450 New York Times Co. Class A (N) 10,770 249 Nike, Inc. Class B 14,160 1,399 NTL, Inc. 52,900 1,442
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- O'Charleys, Inc. (AE)(N) 27,193 578 OfficeMax, Inc. 10,300 497 Omnicom Group, Inc. 7,800 821 Phillips-Van Heusen Corp. 11,900 656 RR Donnelley & Sons Co. 18,500 686 School Specialty, Inc. (AE)(N) 11,712 456 Sears Holdings Corp. (AE) 3,100 548 ServiceMaster Co. (The) (N) 48,500 633 Sturm Ruger & Co., Inc. (AE)(N) 46,513 484 TJX Cos., Inc. 54,000 1,597 Viacom, Inc. Class A (AE) 21,047 856 Walt Disney Co. (The) 43,350 1,525 WPP Group PLC - ADR (N) 5,540 408 ------------ 41,168 ------------ Consumer Staples - 5.1% Altria Group, Inc. 76,200 6,659 Anheuser-Busch Cos., Inc. 35,100 1,789 Coca-Cola Co. (The) 27,500 1,317 ConAgra Foods, Inc. 64,700 1,663 Cott Corp. (AE)(N) 31,828 451 CVS Corp. (N) 17,490 589 Del Monte Foods Co. 9,055 104 Diageo PLC - ADR 13,020 1,025 Hershey Co. (The) (N) 26,100 1,332 HJ Heinz Co. 31,200 1,470 Kellogg Co. 24,000 1,183 Lance, Inc. 20,317 432 Molson Coors Brewing Co. Class B 18,700 1,511 Nestle SA - ADR 10,330 944 PepsiCo, Inc. 10,220 667 Procter & Gamble Co. 26,100 1,693 Tyson Foods, Inc. Class A (N) 13,490 239 ------------ 23,068 ------------ Financial Services - 25.9% Aflac, Inc. 9,470 451 Allstate Corp. (The) 57,650 3,468 American Express Co. 17,820 1,038 American International Group, Inc. 44,300 3,032 Ameriprise Financial, Inc. 13,800 814 Amvescap PLC - ADR (N) 46,300 1,128 Annaly Capital Management, Inc. (o) 73,600 1,014 Assurant, Inc. 16,700 928 Astoria Financial Corp. 21,900 648 Automatic Data Processing, Inc. 20,900 997 Bank of America Corp. 232,185 12,208
166 Select Value Fund RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Bank of New York Co., Inc. (The) (N) 39,280 1,572 Bear Stearns Cos., Inc. (The) 11,400 1,879 Cedar Shopping Centers, Inc. (o)(N) 18,623 312 Chubb Corp. 12,400 645 Cigna Corp. 9,200 1,218 Citigroup, Inc. 168,210 9,273 Colonial BancGroup, Inc. (The) (N) 28,000 687 Countrywide Financial Corp. 58,800 2,557 Covanta Holding Corp. (AE)(N) 35,200 833 Credit Suisse Group - ADR 16,800 1,194 Cullen/Frost Bankers, Inc. 11,600 621 Fannie Mae 32,900 1,860 Federated Investors, Inc. Class B 33,000 1,165 First Horizon National Corp. (N) 17,100 746 First Industrial Realty Trust, Inc. (o)(N) 10,517 497 First Marblehead Corp. (The) (N) 9,160 498 Franklin Resources, Inc. 5,940 708 Freddie Mac 6,730 437 Fremont General Corp. (N) 21,136 287 GATX Corp. (N) 10,066 459 Genworth Financial, Inc. Class A 32,130 1,121 Goldman Sachs Group, Inc. 13,810 2,930 H&R Block, Inc. 32,200 792 Hanover Insurance Group, Inc. (The) 9,602 461 Hartford Financial Services Group, Inc. 25,210 2,393 Huntington Bancshares, Inc. (N) 49,600 1,155 Jones Lang LaSalle, Inc. 12,700 1,327 JPMorgan Chase & Co. 130,200 6,631 KeyCorp 33,500 1,279 Kronos, Inc. (AE)(N) 11,902 452 Legg Mason, Inc. 19,700 2,066 Lehman Brothers Holdings, Inc. 47,230 3,884 Lincoln National Corp. 15,100 1,014 MBIA, Inc. 19,600 1,408 Mellon Financial Corp. (N) 22,950 981 Mercury General Corp. (N) 13,200 689 Merrill Lynch & Co., Inc. 70,110 6,560 Metlife, Inc. 52,000 3,230 MGIC Investment Corp. (N) 16,300 1,006 Morgan Stanley 11,200 927 New York Community Bancorp, Inc. (N) 64,300 1,086 Northern Trust Corp. 23,800 1,446 PNC Financial Services Group, Inc. 19,580 1,444 Protective Life Corp. 13,600 665 Prudential Financial, Inc. 13,400 1,194 South Financial Group, Inc. (The) (N) 29,600 765 St. Paul Travelers Cos., Inc. (The) 28,600 1,454 Sun Communities, Inc. (o) 10,765 340 SunTrust Banks, Inc. 41,210 3,425 UBS AG 63,410 3,996 US Bancorp 73,900 2,631
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- W Holding Co., Inc. 7,819 41 Wachovia Corp. 16,600 938 Washington Mutual, Inc. (N) 68,900 3,072 Westamerica Bancorporation (N) 8,360 417 Wilmington Trust Corp. 24,600 1,032 ------------ 117,426 ------------ Health Care - 11.0% Abbott Laboratories 8,150 432 AmerisourceBergen Corp. Class A 24,300 1,273 Amgen, Inc. (AE) 65,100 4,581 Biogen Idec, Inc. (AE)(N) 66,815 3,230 Boston Scientific Corp. (AE) 91,100 1,681 Caremark Rx, Inc. 5,760 353 Chattem, Inc. (AE)(N) 11,806 678 Diversa Corp. (AE)(N) 28,430 290 Eli Lilly & Co. 36,730 1,988 Gentiva Health Services, Inc. (AE)(N) 32,354 641 Genzyme Corp. (AE) 41,200 2,708 Haemonetics Corp. (AE)(N) 8,271 399 Johnson & Johnson 65,800 4,395 KV Pharmaceutical Co. (AE)(N) 25,151 635 LifePoint Hospitals, Inc. (AE)(N) 8,321 283 Matria Healthcare, Inc. (AE)(N) 22,141 612 McKesson Corp. 14,500 808 Medco Health Solutions, Inc. (AE) 15,800 935 Medtronic, Inc. 60,400 3,228 Merck & Co., Inc. 67,920 3,039 Par Pharmaceutical Cos., Inc. (AE)(N) 26,671 704 Pfizer, Inc. 127,300 3,340 PolyMedica Corp. (N) 16,281 652 PSS World Medical, Inc. (AE) 15,562 311 Sunrise Senior Living, Inc. (AE)(N) 14,759 528 SurModics, Inc. (AE) 2,884 104 Thermo Fisher Scientific, Inc. (AE) 16,200 775 UnitedHealth Group, Inc. 64,750 3,384 US Physical Therapy, Inc. (AE) 22,491 317 WellPoint, Inc. (AE) 62,090 4,867 Wyeth 54,150 2,676 ------------ 49,847 ------------ Integrated Oils - 4.5% Chevron Corp. 67,852 4,945 ConocoPhillips 49,310 3,275 Exxon Mobil Corp. 123,960 9,185 Hess Corp. 23,980 1,295
Select Value Fund 167 RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Marathon Oil Corp. 7,600 687 Total SA - ADR 17,960 1,222 ------------ 20,609 ------------ Materials and Processing - 7.4% Acuity Brands, Inc. (N) 10,340 600 Air Products & Chemicals, Inc. 10,360 773 Albemarle Corp. 11,900 928 American Standard Cos., Inc. (N) 62,900 3,107 Avery Dennison Corp. 8,500 581 Bowater, Inc. (N) 3,930 107 Brush Engineered Materials, Inc. (AE)(N) 15,066 498 Celanese Corp. Class A (N) 30,500 801 Chemtura Corp. (N) 51,200 590 Chicago Bridge & Iron Co. NV 23,200 689 Commercial Metals Co. (N) 17,399 472 Dow Chemical Co. (The) (N) 44,840 1,863 EI Du Pont de Nemours & Co. 19,400 961 Freeport-McMoRan Copper & Gold, Inc. Class B (N) 47,500 2,732 International Paper Co. 45,450 1,532 LSI Industries, Inc. 7,160 137 Lubrizol Corp. 13,900 716 Lyondell Chemical Co. (N) 13,500 427 Masco Corp. (N) 73,460 2,350 MeadWestvaco Corp. 21,300 642 Modtech Holdings, Inc. (AE)(N) 43,809 205 Nalco Holding Co. (AE) 11,680 268 Packaging Corp. of America 26,700 610 PPG Industries, Inc. (N) 21,070 1,397 Praxair, Inc. 12,460 786 Precision Castparts Corp. 35,200 3,129 RPM International, Inc. 33,100 769 Sherwin-Williams Co. (The) 8,320 575 Smurfit-Stone Container Corp. (AE)(N) 17,360 187 Spartech Corp. 21,634 606 Steel Dynamics, Inc. (N) 16,200 635 Syngenta AG - ADR 32,590 1,208 Teck Cominco, Ltd. Class B (N) 21,600 1,595 Timken Co. 23,000 658 Valspar Corp. 20,100 566 ------------ 33,700 ------------ Miscellaneous - 2.4% 3M Co. 16,000 1,189 Brunswick Corp. 20,200 689 Eaton Corp. 1,700 133 General Electric Co. 70,400 2,538 Johnson Controls, Inc. 5,550 513 SPX Corp. (N) 10,800 758 Textron, Inc. 27,200 2,534 Trinity Industries, Inc. (N) 49,050 1,876
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Tyco International, Ltd. 16,100 514 ------------ 10,744 ------------ Other Energy - 5.0% Anadarko Petroleum Corp. 15,600 682 Apache Corp. 11,080 809 Chesapeake Energy Corp. 111,300 3,296 Devon Energy Corp. 51,750 3,627 Dynegy, Inc. Class A (AE) 2,043 14 Encore Acquisition Co. (AE)(N) 18,749 487 EOG Resources, Inc. 35,310 2,441 Forest Oil Corp. (AE)(N) 12,153 388 Global Industries, Ltd. (AE) 26,998 364 Hanover Compressor Co. (AE)(N) 29,867 578 Matrix Service Co. (AE)(N) 31,761 585 National-Oilwell Varco, Inc. (AE) 42,400 2,571 Noble Corp. (N) 5,050 378 Sunoco, Inc. 13,700 865 Tesoro Corp. 7,700 634 Transocean, Inc. (AE) 23,300 1,803 Valero Energy Corp. 33,700 1,829 Whiting Petroleum Corp. (AE)(N) 10,420 475 Williams Cos., Inc. 26,500 715 ------------ 22,541 ------------ Producer Durables - 7.4% Agilent Technologies, Inc. (AE) 97,200 3,110 Alcatel-Lucent - ADR 60,300 784 BE Aerospace, Inc. (AE) 19,179 571 Boeing Co. 44,200 3,959 C&D Technologies, Inc. (N) 79,696 430 Champion Enterprises, Inc. (AE)(N) 53,342 438 Cooper Industries, Ltd. Class A (N) 2,240 205 Deere & Co. 21,870 2,193 Esterline Technologies Corp. (AE)(N) 11,199 448 Federal Signal Corp. 33,187 545 General Cable Corp. (AE)(N) 17,073 736 Goodrich Corp. 46,500 2,279 IDEX Corp. 7,981 414 Lockheed Martin Corp. 44,760 4,350 Mettler Toledo International, Inc. (AE) 2,700 224 Nokia OYJ - ADR 71,000 1,569 Northrop Grumman Corp. 51,300 3,639 Pentair, Inc. (N) 27,300 851 Robbins & Myers, Inc. 18,240 793 Steelcase, Inc. Class A 27,300 535 Terex Corp. (AE) 22,600 1,286
168 Select Value Fund RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Toll Brothers, Inc. (AE)(N) 8,300 281 United Technologies Corp. 38,020 2,586 Varian Semiconductor Equipment Associates, Inc. (AE)(N) 7,641 314 WW Grainger, Inc. 10,450 812 ------------ 33,352 ------------ Technology - 5.7% American Science & Engineering, Inc. (AE)(N) 9,014 493 Analog Devices, Inc. 25,470 834 CACI International, Inc. Class A (AE)(N) 8,917 419 Cisco Systems, Inc. (AE) 15,580 414 Dell, Inc. (AE) 33,900 822 DRS Technologies, Inc. (N) 9,112 505 General Dynamics Corp. 35,300 2,759 GTSI Corp. (AE)(N) 3,851 36 Harris Corp. 15,900 808 Hewlett-Packard Co. 127,500 5,518 Intel Corp. 194,810 4,083 International Business Machines Corp. 8,400 833 Linear Technology Corp. 20,500 634 LSI Logic Corp. (AE)(N) 312,000 2,933 Mantech International Corp. Class A (AE) 14,594 498 Micron Technology, Inc. (AE) 48,900 633 Oracle Corp. (AE) 61,390 1,053 Rockwell Automation, Inc. (N) 12,140 743 Seagate Technology, Inc. (AE) 1,900 -- Synopsys, Inc. (AE)(N) 37,500 998 Varian, Inc. (AE)(N) 10,028 537 Western Digital Corp. (AE) 25,400 498 ------------ 26,051 ------------ Utilities - 7.5% Alaska Communications Systems Group, Inc. (N) 40,912 661 Alltel Corp. 60,800 3,726 America Movil SA de CV Series L 50,300 2,231 American Electric Power Co., Inc. 36,600 1,593 Aqua America, Inc. (N) 33,000 733 AT&T, Inc. 86,600 3,258 China Mobile, Ltd. - ADR (N) 56,700 2,617 Citizens Communications Co. (N) 59,200 868 Comcast Corp. Class A (AE) 28,800 1,276 Consolidated Edison, Inc. (N) 6,600 319 Dominion Resources, Inc. 31,110 2,580 Edison International 16,400 738 Embarq Corp. 9,977 554
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Entergy Corp. 7,510 697 FPL Group, Inc. (N) 20,960 1,187 NiSource, Inc. (N) 25,900 616 Pepco Holdings, Inc. 26,500 678 PPL Corp. 7,470 266 Progress Energy, Inc. - CVO 1,300 -- Public Service Enterprise Group, Inc. (N) 3,370 226 Rogers Communications, Inc. Class B 28,100 870 SCANA Corp. 7,200 293 Sprint Nextel Corp. 169,490 3,022 TECO Energy, Inc. (N) 23,500 399 TELUS Corp. Class A 3,800 176 TXU Corp. 13,240 716 Verizon Communications, Inc. 56,640 2,182 Vodafone Group PLC - ADR 34,481 1,013 Windstream Corp. (AE) 45,400 678 ------------ 34,173 ------------ TOTAL COMMON STOCKS (cost $340,367) 424,061 ------------ SHORT-TERM INVESTMENTS - 6.0% Russell Investment Company Money Market Fund 25,756,000 25,756 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 1,500 1,492 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $27,248) 27,248 ------------ OTHER SECURITIES - 15.3% Russell Investment Company Money Market Fund (X) 17,086,209 17,086 State Street Securities Lending Quality Trust (X) 52,094,664 52,095 ------------ TOTAL OTHER SECURITIES (cost $69,181) 69,181 ------------ TOTAL INVESTMENTS - 114.8% (identified cost $436,796) 520,490 OTHER ASSETS AND LIABILITIES, NET - (14.8%) (67,117) ------------ NET ASSETS - 100.0% 453,373 ============
See accompanying notes which are an integral part of the schedules of investments. Select Value Fund 169 RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Russell 1000 Value Index expiration date 03/07 (29) 12,017 214 S&P 500 E-Mini Index (CME) expiration date 03/07 (19) 1,371 15 S&P 500 Index (CME) expiration date 03/07 (39) 14,069 107 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 336 ===============
See accompanying notes which are an integral part of the schedules of investments. 170 Select Value Fund RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO SCHEDULES OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- FOOTNOTES: (AE) Nonincome-producing security. (I) Forward commitment. (E) Adjustable or floating rate security. Rate shown reflects rate in effect at period end. (f) Perpetual floating rate security. Rate shown reflects rate in effect at period end. (o) Real Estate Investment Trust (REIT). (u) Bond is insured by a guarantor. (B) Illiquid security. (O) In default. (c) At amortized cost, which approximates market. (z) Rate noted is yield-to-maturity from date of acquisition. (ae) Pre-refunded: These bonds are collateralized by US 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. (S) All or a portion of the shares of this security are held as collateral in connection with futures contracts purchased (sold), options written, or swaps entered into by the Fund. (x) The security is purchased with the cash collateral from the securities loaned. (N) All or a portion of the shares of this security are on loan. (p) Restricted security. Security may have contractual restrictions on resale, may have been offered in a private placement transaction, and may not be registered under the Securities Act of 1933. (A) Illiquid and restricted security. (a) Currency balances were held in connection with futures contracts purchased (sold), options written, or swaps entered into by the Fund. See Note 2. (U) All or a portion of the shares of this security are held as collateral in connection with securities sold short. ABBREVIATIONS: ADR - American Depositary Receipt ADS - American Depositary Share CIBOR - Copenhagen Interbank Offered Rate CME - Chicago Mercantile Exchange CMO - Collateralized Mortgage Obligation CVO - Contingent Value Obligation FDIC - Federal Deposit Insurance Company GDR - Global Depositary Receipt GDS - Global Depositary Share LIBOR - London Interbank Offered Rate NIBOR - Norwegian Interbank Offered Rate PIK - Payment in Kind REMIC - Real Estate Mortgage Investment Conduit STRIP - Separate Trading of Registered Interest and Principal of Securities TBA - To Be Announced Security 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 - Iceland 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 Rica 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 EGP - Egyptian pound MYR - Malaysian ringgit VEB - Venezuelan bolivar EUR - Euro NOK - Norwegian krone VND - Vietnam dong GBP - British pound sterling NZD - New Zealand dollar ZAR - South African rand PEN - Peruvian nouveau sol
Notes to Schedules of Investments 171 RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- 1. ORGANIZATION Russell Investment Company (the "Investment Company" or "RIC") is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on fourteen of these Funds. The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under an amended and restated master trust agreement dated August 19, 2002. The Investment Company's master trust agreement permits the Board of Trustees (the "Board") to issue an unlimited number of shares of beneficial interest at a $.01 par value per share. On July 1, 2006, Frank Russell Investment Company changed its name to Russell Investment Company and Frank Russell Investment Management Company changed its name to Russell Investment Management Company ("RIMCo"). 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 generally accepted accounting principles ("GAAP") for investment companies. The presentation of these schedules of investments in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Quarterly Report. Actual results could differ from those estimates. Security Valuation The Funds value portfolio securities according to Board-approved Securities Valuation Procedures, including Market Value Procedures, Fair Value Procedures and Pricing Services. Money market fund securities are priced using the amortized cost method of valuation, as are debt obligation securities maturing within 60 days at the time of purchase, unless the Board determines that amortized cost does not represent market value of short-term debt obligations. The Board has delegated the responsibility for administration of the Securities Valuation Procedures to RIMCo. Ordinarily, the Funds value each portfolio security based on market quotations provided by Pricing Services or alternative pricing services or dealers (when permitted by the Market Value Procedures). Generally, Fund securities are valued at the close of the market on which they are traded as follows: - US listed equities; equity and fixed income options: Last sale price; last bid price if no last sale price; - US over-the-counter equities: Official closing price; last bid price if no closing price; - Listed ADRs/GDRs: Last sale price; last bid price if no sales; - Municipal bonds, US bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price; - Futures: Settlement price. - Investments in other mutual funds are valued at their net asset value per share, calculated at 4 p.m. Eastern time or as of the close of the New York Stock Exchange, whichever is earlier. - The value of swap agreements are equal to the Funds' obligation (or rights) under swap contracts which will generally be equal to the net amounts to be paid or received under the contracts based upon the relative values of the positions held by each party to the contracts. - Equity securities traded on a national securities foreign exchange or an over the counter market (foreign or domestic) are valued on the basis of the official closing price, or lacking the official closing price, at the last sale price of the primary exchange on which the security is traded. If market quotations are not readily available for a security or if subsequent events suggest that a market quotation is not reliable, the Funds will use the security's fair value, as determined in accordance with the Fair Value Procedures. This generally means that equity securities and fixed income securities listed and traded principally on any national securities exchange are valued on the basis of the last sale price or, lacking any sales, at the closing bid price, on the primary exchange on which the security is traded. The Fair Value Procedures may involve subjective judgments as to the fair value of securities. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Fund's Board of Trustees believes reflects fair value. The use of 172 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - -------------------------------------------------------------------------------- fair value pricing by a Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using normal pricing methods. Fair value pricing could also cause discrepancies between the daily movement of the value of Fund shares and the daily movement of the benchmark index if the index is valued using another pricing method. This policy is intended to assure that the Funds' net asset values fairly reflect security values as of the time of pricing. 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 net asset value of Fund shares is determined may be reflected in the calculation of net asset values for each applicable Fund when the Funds deem that the particular event or circumstance would materially affect such Fund's net asset value. RIC 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. RIC 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. RIC Funds that invest in low rated debt securities are also likely to use fair value pricing more often since the markets in which such securities are traded are generally thinner, more limited and less active than those for higher rated securities. Examples of events that could trigger fair value pricing of one or more securities are: a material market movement of the US securities market (defined in the Fair Value Procedures as the movement by any two of four major US Indexes greater than a certain percentage) or other significant event; foreign market holidays if on a daily basis, Fund exposure exceeds 20% in aggregate (all closed markets combined); a company development; a natural disaster; or an armed conflict. Because foreign securities can trade on non-business days, the net asset value 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. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds financial statement disclosure. Investment Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost incurred by 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 thereafter as the Funds are informed of the ex-dividend date. Interest income is recorded daily on the accrual basis. All premiums and discounts, including original issue discounts, are amortized/accreted using the interest method. Foreign Currency Translations The books and records of the Funds are maintained in US dollars. Foreign currency amounts and transactions of the Funds are translated into US dollars on the following basis: (a) Market 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. Reported 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 US dollar equivalent of the amounts actually received or paid. Net unrealized gains or losses from foreign currency-related transactions arise from changes in the value of assets and liabilities, other than investments in securities, at year-end, 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 Notes to Quarterly Report 173 RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - -------------------------------------------------------------------------------- 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 To the extent permitted by the investment objectives, restrictions and policies set forth in the Funds' Prospectus and Statement of Additional Information, the Funds may participate in various derivative-based transactions. Derivative securities are instruments or agreements whose value is derived from an underlying security or index. They include options, futures, swaps, swaptions, forwards, structured notes and stripped securities. These instruments offer unique characteristics and risks that assist the Funds in meeting their investment strategies. The Funds typically use derivatives in two ways: hedging and return enhancement. The Funds may use a hedging strategy for their cash reserves to achieve a strategy of being fully invested by exposing those reserves to the performance of appropriate markets by purchasing equity or fixed income securities, as appropriate, and/or derivatives. Hedging is also used by some 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. By purchasing certain instruments, 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 are generally categorized as market risk, liquidity risk and counterparty or credit risk. Foreign Currency Exchange Contracts In connection with portfolio purchases and sales of securities denominated in a foreign currency, certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts ("contracts"). The International Securities Fund may enter into forward foreign currency overlays on liquidity reserve balances. Additionally, from time to time the International Securities, Emerging Markets, Short Duration Bond, Diversified Bond and Multistrategy Bond Funds may enter into contracts to hedge certain foreign currency-denominated assets. Contracts are recorded at market value. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and are generally limited to the amount of unrealized gain on the contracts, if any, that are recognized in the Statement of Assets and Liabilities. Realized gains or losses arising from such transactions are included in net realized gain (or loss) from foreign currency-related transactions. Open contracts at January 31, 2007 are presented on the Schedule of Investments for the applicable Funds. Forward Commitments The Funds may contract to purchase securities for a fixed price at a future date beyond customary settlement time consistent with a Fund's ability to manage its investment portfolio and meet redemption requests. 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 realize short-term gains (or losses) upon such sale. When effecting such transactions, cash or liquid high-grade debt obligations of the Fund in a dollar amount sufficient to make payment for the portfolio securities to be purchased will be segregated on the Fund's records at the trade date and maintained 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. Loan Agreements The Diversified Bond Fund and Multistrategy Bond Fund may invest in direct debt instruments which are interests in amounts owed by corporate, governmental, or other borrowers to lenders or lending syndicates. A Fund's 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 "lender") 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, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the borrower. A Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is 174 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - -------------------------------------------------------------------------------- selling the loan agreement. When a Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. At the period ended January 31, 2007, there were no unfunded loan commitments in the Diversified Bond Fund or Multistrategy Bond Fund. Options The Funds may purchase and sell (write) call and put options on securities and securities indices, provided such options are traded on a national securities exchange or in an over-the-counter market. The Funds may also purchase and sell call and put options on foreign currencies. The domestic equity Funds may utilize options to equitize liquidity reserve balances. 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 market 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 stock value 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 security. 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. Realized gains (losses) on purchased options are included in net realized gain (loss) from investments. The Funds' use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement 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. Futures Contracts The Funds presented herein may invest in futures contracts (i.e., interest rate, foreign currency and index futures contracts) to a limited extent. The face or contract amounts 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 market value of the securities held by the Fund 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% of the purchase price indicated in the futures contract. Payments to and from the broker, known as variation margin, are 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. As of January 31, 2007, the Emerging Markets Fund, International Securities Fund, and the MultiStrategy Bond Fund had cash collateral balances of $2,600,000, $13,433,710, and $104,782 respectively in connection with futures contracts purchased (sold). Swap Agreements The Funds may enter into several different types of agreements including interest rate, index, credit default and currency swaps. The Funds may enter into index swap agreements as an additional hedging strategy for cash reserves held by those Funds or to effect investment transactions consistent with these Funds' investment objectives and strategies. 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 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). Amounts paid to and received from the swap counterparties representing capital appreciation and depreciation on the underlying securities and accrued interest expense and interest income are recorded as net realized gain Notes to Quarterly Report 175 RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - -------------------------------------------------------------------------------- (loss). The Fund is exposed to credit risk in the event of non-performance by the swap counterparties; however, the Fund does not anticipate non-performance by the counterparties. The Short Duration Bond, Diversified Bond, Multistrategy Bond and International Securities Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether it is hedging its assets or its liabilities, and will usually enter into swaps on a net basis, i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, 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 or rights to receive payments of another party (i.e., an exchange of floating rate payments for fixed rate payments). Interest rate swaps are a counterparty agreement and can be customized to meet each parties needs and involves the exchange of a fixed payment per period for a payment that is not fixed. Currency swaps are an agreement where two parties exchange specified amounts of different currencies which are followed by a series of interest payments that are exchanged based on the principal cash flow. At maturity the principal amounts are exchanged back. Credit default swaps are a counterparty agreement which allows the transfer of third party credit risk (the possibility that an issuer will default on their 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. The Fund expects to enter into these transactions primarily to preserve a return or spread on a particular investment or portion of its portfolio or to protect against any increase in the price of securities it anticipates purchasing at a later date. The net amount of the excess, if any, of the Fund's obligations over its entitlements with respect to each swap will be accrued on a daily basis and an amount of cash or liquid high-grade debt securities having an aggregate net asset value at least equal to the accrued excess will be maintained in a segregated account by the Fund's custodian. To the extent that the Fund enters into swaps on other than a net basis, the amount maintained in a segregated account will be the full amount of the Fund's obligations, if any, with respect to such interest rate swaps, accrued on a daily basis. If there is a default by the other party to such a transaction, the Fund will have contractual remedies pursuant to the agreement related to the transaction. The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the swap market has become relatively liquid. Short Sales The Quantitative Equity Fund 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 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 Fund 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 fund replaces the borrowed security. The Fund will realize a gain if the security declines in price between those dates. The making of short sales exposes the Fund to the risk of liability for the market value of the security that is sold (the amount of which liability increases as the market value of the underlying security increases), in addition to the costs associated with establishing, maintaining and closing out the short position. Although the Fund's 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 Fund makes a short sale, the Fund may use all or a portion of the cash proceeds of short sales to purchase additional securities or for any other permissible Fund purpose. To the extent necessary to meet collateral requirements, the Fund is required to pledge assets in a segregated account maintained by the Fund's custodian for the benefit of the broker. The Fund also may use securities it owns to meet any such collateral obligations. Until a Fund replaces a borrowed security in connection with a short sale, the Fund will: (a) maintain daily a segregated account, containing cash, cash equivalents, or liquid marketable securities, at such a level that the amount deposited in the segregated account plus the amount deposited with the broker as collateral 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 SEC (e.g., taking an offsetting long position in the security sold short.) As of January 31, 2007, $547,449,235 was held as collateral. 176 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - -------------------------------------------------------------------------------- Investments in Emerging Markets Investing in emerging markets may involve special risks and considerations for the Emerging Markets Fund and International Securities Fund not typically associated with investing in the United States markets. These risks include revaluation of currencies, high rates of inflation, repatriation, restrictions on income and capital, and future adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, delayed settlements, and their prices may be more volatile than those of comparable securities in the United States. 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. Mortgage-Related and Other Asset-Backed Securities Certain Funds may invest in mortgage or other asset-backed securities. Theses securities include mortgage pass-through securities, collateralized mortgage obligations ("CMOs"), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage backed securities ("SMBSs") 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 some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage- related securities may expose a Fund to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market's perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations. One type of SMBS has one class receiving all of the interest from the mortgage assets (the interest-only, or "IO" class), while the other class will receive all of the principal (the principal-only, or "PO" class). Payments received for the IOs are included in interest income on the Statement of Operations. Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security on a daily basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities. Inflation-Indexed Bonds Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity. 3. INVESTMENT TRANSACTIONS Written Options Contracts Transactions in written options contracts for the period ended January 31, 2007 for the following Funds were as follows:
INTERNATIONAL SECURITIES EMERGING MARKETS FUND ------------------------------------------ ------------------------------------------ NUMBER OF PREMIUMS NUMBER OF PREMIUMS CONTRACTS RECEIVED CONTRACTS RECEIVED ------------------------------------------------------------------------------------------------------------------------------ Outstanding October 31, 2006 416 $ 1,886,640 626 $ 828,429 Opened 976 4,747,698 596 854,485 Closed (963) (4,633,802) (806) (1,117,677) Expired -- -- -- -- ------------------- ------------------- ------------------- ------------------- Outstanding January 31, 2007 429 $ 2,000,536 416 $ 565,237 =================== =================== =================== ===================
Notes to Quarterly Report 177 RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - --------------------------------------------------------------------------------
SHORT DURATION BOND FUND DIVERSIFIED BOND ------------------------------------------ ------------------------------------------ NUMBER OF PREMIUMS NUMBER OF PREMIUMS CONTRACTS RECEIVED CONTRACTS RECEIVED ------------------------------------------------------------------------------------------------------------------------------ Outstanding October 31, 2006 415 $ 773,315 717 $ 208,329 Opened 4 272,185 2,698 441,613 Closed (352) (336,076) (1,938) (311,812) Expired (42) (117,035) (96) (46,535) ------------------- ------------------- ------------------- ------------------- Outstanding January 31, 2007 25 $ 592,389 1,381 $ 291,595 =================== =================== =================== ===================
MULTISTRATEGY BOND ------------------------------------------ NUMBER OF PREMIUMS CONTRACTS RECEIVED -------------------------------------------------------------------------------- Outstanding October 31, 2006 1,169 $ 1,995,299 Opened 5,426 1,482,245 Closed (3,406) (619,660) Expired (575) (288,523) ------------------- ------------------- Outstanding January 31, 2007 2,448 $ 2,569,361 =================== ===================
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 its total assets. The Fund receives cash (US currency), US Government or US Government agency obligations as collateral against the loaned securities. To the extent that a loan is collateralized by cash, such collateral is invested by the securities lending agent, State Street Bank and Trust Company ("State Street") in short-term instruments, money market mutual funds and other short-term investments that meet certain quality and diversification requirements. Cash collateral invested in money market funds is included in the Schedules of Investments. 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 and transaction costs, is divided between the Fund and State Street and is recorded as income for the Fund. To the extent that a loan is secured by non-cash collateral, brokers pay the Fund negotiated lenders' fees, which are divided between the Fund and State Street 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 US securities) or 105% (for non-US securities) of the market value of the loaned securities at the inception of each loan. The market value of the loaned securities is determined at the close of business of the Funds 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. Consequently, loans are made only to borrowers which are deemed to be of good financial standing. As of January 31, 2007, the non-cash collateral received for the securities on loan in the following funds was:
NON-CASH FUNDS COLLATERAL VALUE NON-CASH COLLATERAL HOLDING --------------------------------------------------------------------------------------------- MultiStrategy Bond $ 1,113,911 Pool of US Government Securities International Securities 7,657,124 Pool of US Government Securities Quantitative Equity 1,878,200 Pool of US Government Securities
4. RELATED PARTIES The Funds are permitted to invest their cash reserves (i.e., cash awaiting investment or cash held to meet redemption requests or to pay expenses) and also may invest a portion of the collateral received from the Investment Company's securities lending program, in the Investment Company's Money Market and Tax Free Money Market Funds (two of the Funds of the Investment Company not presented herein). As of January 31, 2007, $1,984,202,737 of the Money Market Fund's net assets and $6,642,848 of the Tax Free Money Market Fund's net assets represents investments by the Funds presented herein and $642,906,370 of the Money Market Funds' net assets represents the investments of other RIC Funds not presented herein. 178 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - -------------------------------------------------------------------------------- 5. FEDERAL INCOME TAXES At January 31, 2007, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
INTERNATIONAL DIVERSIFIED EQUITY SPECIAL GROWTH QUANTITATIVE EQUITY SECURITIES ----------------------------------------------------------------------------------------------------------- Cost of Investments $ 3,838,949,292 $ 1,463,460,696 $ 3,926,466,923 $ 3,899,174,014 ================ ================ ================ ================ Unrealized Appreciation $ 645,734,576 $ 183,461,889 $ 675,095,032 $ 736,501,818 Unrealized Depreciation (25,706,856) (19,545,707) (26,228,709) (22,654,784) ---------------- ---------------- ---------------- ---------------- Net Unrealized Appreciation (Depreciation) $ 620,027,720 $ 163,916,182 $ 648,866,323 $ 713,847,034 ================ ================ ================ ================
REAL ESTATE SHORT DURATION EMERGING MARKETS SECURITIES BOND DIVERSIFIED BOND MULTISTRATEGY BOND ------------------------------------------------------------------------------------------------------------------------------ Cost of Investments $ 956,568,452 $ 1,568,696,028 $ 1,196,528,378 $ 3,033,741,064 $ 3,102,952,967 ================ ================ ================ ================ ================ Unrealized Appreciation $ 385,829,960 $ 975,475,623 $ 1,226,915 $ 14,031,172 $ 681,874 Unrealized Depreciation (12,343,017) (659,678) (9,500,947) (5,665,392) (744,820) ---------------- ---------------- ---------------- ---------------- ---------------- Net Unrealized Appreciation (Depreciation) $ 373,486,943 $ 974,815,945 $ (8,274,032) $ 8,365,780 $ (62,946) ================ ================ ================ ================ ================
TAX-MANAGED TAX-MANAGED TAX EXEMPT BOND LARGE CAP MID & SMALL CAP SELECT GROWTH SELECT VALUE ------------------------------------------------------------------------------------------------------------------------------ Cost of Investments $ 304,410,632 $ 432,620,452 $ 289,029,564 $ 209,465,346 $ 438,236,969 ================ ================ ================ ================ ================ Unrealized Appreciation $ 2,983,606 $ 139,953,182 $ 51,677,154 $ 27,086,251 $ 85,336,349 Unrealized Depreciation (1,804,222) (4,237,089) (4,141,212) (2,550,788) (3,083,127) ---------------- ---------------- ---------------- ---------------- ---------------- Net Unrealized Appreciation (Depreciation) $ 1,179,384 $ 135,716,093 $ 47,535,942 $ 24,535,463 $ 82,253,222 ================ ================ ================ ================ ================
6. RESTRICTED SECURITIES Restricted securities are subject to contractual limitations on resale, are often issued in private placement transactions, and are not registered under the Securities Act of 1933 (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. 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. Notes to Quarterly Report 179 RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - -------------------------------------------------------------------------------- The following table lists restricted securities held by a Fund that are illiquid. The following table does not include (1) securities deemed liquid by RIMCo or a money manager pursuant to Board approved policies and procedures or (2) illiquid securities that are not restricted securities as designated on the Fund's Schedule of Investments.
PRINCIPAL COST MARKET VALUE FUND - % OF NET ASSETS ACQUISITION AMOUNT ($) COST PER UNIT (000) (000) SECURITIES DATE OR SHARES $ $ $ ----------------------------------------------------------------------------------------------------------------------------- Emerging Markets Fund - 0.2% NovaTek OAO - GDR 07/21/05 45,000 2,331.28 1,049 2,430 ============== Short Duration Bond Fund - 0.4% Arran Residential Mortgages Funding PLC 01/04/07 733,036 100.00 733 733 DG Funding Trust 11/04/03 219 10,537.12 2,308 2,307 ICICI Bank, Ltd. 01/09/07 1,100,000 100.00 1,100 1,103 -------------- 4,143 ============== Diversified Bond Fund - 1.0% Aiful Corp. 08/03/05 300,000 99.76 299 290 Air 2 US 01/10/07 486,150 105.00 510 504 Banco Mercantil del Norte SA 01/23/07 690,000 101.42 700 697 Citizens Property Insurance Corp. 01/23/07 795,000 114.30 909 932 Countrywide Home Loan Mortgage Pass Through Trust 09/21/05 1,743,433 100.00 1,743 1,753 CVS Lease Pass Through 01/09/07 299,503 99.95 299 295 DG Funding Trust 11/04/03 240 10,594.65 2,543 2,525 Gaz Capital for Gazprom 11/17/06 1,850,000 99.92 1,849 1,827 Glitnir Banki HF 06/12/06 570,000 99.96 570 589 ILFC E-Capital Trust II 09/12/06 50,000 99.45 50 51 Kaupthing Bank Hf 09/28/06 110,000 99.48 109 110 Kaupthing Bank Hf 05/12/06 1,730,000 99.50 1,721 1,827 Mastr Reperforming Loan Trust 03/09/05 761,512 102.29 779 761 Prime Mortgage Trust 11/10/06 1,833,882 99.44 1,824 1,818 Prime Mortgage Trust 11/10/06 858,720 100.81 866 863 Prime Mortgage Trust 11/22/06 3,988,976 98.26 3,919 3,953 Prime Mortgage Trust 10/25/06 2,816,348 98.90 2,785 2,807 Rabobank Capital Funding II 05/23/05 30,000 101.80 31 29 Rabobank Capital Funding Trust 05/19/05 60,000 100.77 60 58 Resona Preferred Global Securities Cayman, Ltd. 07/20/05 375,000 100.88 378 392 Shinsei Finance Cayman, Ltd. 02/16/06 660,000 99.85 659 656 Sigma Finance, Inc. 07/26/06 970,000 100.00 970 970 TNK-BP Finance SA 07/13/06 430,000 99.76 429 449 Wells Fargo Home Equity Trust 09/28/06 1,141,789 100.03 1,623 1,142 -------------- 25,779 ==============
180 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY RUSSELL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 - --------------------------------------------------------------------------------
PRINCIPAL COST MARKET VALUE FUND - % OF NET ASSETS ACQUISITION AMOUNT ($) COST PER UNIT (000) (000) SECURITIES DATE OR SHARES $ $ $ ----------------------------------------------------------------------------------------------------------------------------- Multistrategy Bond Fund - 0.8% Alion Science and Technology Corp. 01/26/07 975,000 101.44 989 982 Aramark Corp. 01/17/07 370,000 101.12 374 379 Aramark Corp. 01/17/07 350,000 100.00 350 357 Banco Mercantil del Norte SA 01/23/07 1,340,000 101.42 1,359 1,353 Catlin Insurance Co., Ltd. 01/11/07 1,515,000 100.00 1,515 1,530 Citizens Property Insurance Corp. 01/26/07 1,560,000 114.30 1,783 1,830 Cosan Finance, Ltd. 01/19/07 1,535,000 98.31 1,509 1,504 CVS Lease Pass Through 12/12/06 973,386 100.18 975 957 DG Funding Trust 11/04/03 361 10,584.58 3,821 3,800 Dresdner Bank AG 04/09/03 2,235,000 94.17 2,105 2,113 ISA Capital do Brasil SA 01/19/07 228,000 100.00 228 227 KBC Bank Funding Trust III 01/26/07 505,000 110.81 560 559 Stingray Pass-Through Trust 01/16/07 1,000,000 91.79 918 970 Travelport, Ltd. 08/11/06 1,950,000 101.91 1,987 2,101 Vitro SA de CV 01/25/07 420,000 99.01 416 424 Vitro SA de CV 01/25/07 850,000 98.40 836 858 Wimar Opco LLC 01/03/07 1,045,000 99.75 1,042 1,039 -------------- 20,983 ==============
Illiquid securities and restricted securities may be priced by the Funds using fair value procedures approved by the Board of Trustees. Notes to Quarterly Report 181 RUSSELL INVESTMENT COMPANY RUSSELL FUNDS SHAREHOLDER REQUESTS FOR ADDITIONAL INFORMATION -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- As a courtesy to Fund shareholders, 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 Fund at (800) 787-7354, (ii) at www.russell.com, (iii) on the Securities and Exchange Commission's website at www.sec.gov, and (iv) at the Securities and Exchange Commission's public reference room. The Board has delegated to RIMCo, 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. RIMCo has established a proxy voting committee ("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 a Fund. A description of the P&P, Guidelines and Portfolio Holdings Disclosure Policy are contained in the Funds' Statement of Additional Information ("SAI"). The SAI is available (i) free of charge, upon request, by calling the Fund at (800) 787-7354, (ii) at www.russell.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' prospectus 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 call us at (800) 787-7354 or contact your financial institution and we will begin sending you individual copies thirty days after receiving your request. If you wish to receive the Funds' prospectus and each annual and semi-annual report electronically, please call us at (800) 787-7354 or contact your financial institution. 182 Shareholder Requests for Additional Information RUSSELL FUNDS 2007 QUARTERLY REPORT RUSSELL INVESTMENT COMPANY (RUSSELL LOGO) RUSSELL INVESTMENT COMPANY 909 A Street Tacoma, Washington 98402 253-627-7001 800-787-7354 Fax: 253-591-3495 www.russell.com 36-08-067 (1 01/07) INSTITUTIONAL FUNDS 2007 Quarterly Report CLASS E, I, AND Y SHARES: EQUITY I FUND EQUITY II FUND EQUITY Q FUND INTERNATIONAL FUND FIXED INCOME I FUND FIXED INCOME III FUND CLASS C, E, AND S SHARES: EMERGING MARKETS FUND REAL ESTATE SECURITIES FUND SHORT DURATION BOND FUND CLASS C, E, I, AND S SHARES: SELECT GROWTH FUND SELECT VALUE FUND JANUARY 31, 2007 (RUSSELL LOGO) Russell Investment Company Russell Investment Company is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on eleven of these Funds. Russell Investment Management Company* Responsible for overall management and administration of the Funds. * On July 1, 2006, Frank Russell Investment Management Company changed its name to Russell Investment Management Company. Russell Investment Company Institutional Funds Quarterly Report January 31, 2007 (Unaudited) Table of Contents
Page Equity I Fund........................................................ 3 Equity II Fund....................................................... 8 Equity Q Fund........................................................ 19 International Fund................................................... 28 Fixed Income I Fund.................................................. 43 Fixed Income III Fund................................................ 69 Emerging Markets Fund................................................ 109 Real Estate Securities Fund.......................................... 120 Short Duration Bond Fund............................................. 122 Select Growth Fund................................................... 137 Select Value Fund.................................................... 142 Notes to Schedules of Investments.................................... 147 Notes to Quarterly Report............................................ 148 Shareholder Requests for Additional Information...................... 158
Russell Investment Company - Institutional Funds. Copyright (c) Russell Investment Group 2007. All rights reserved. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company. FUND OBJECTIVES, RISKS, CHARGES AND EXPENSES SHOULD BE CAREFULLY CONSIDERED BEFORE INVESTING. 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 FUND DISTRIBUTORS, INC. MEMBER NASD, PART OF RUSSELL INVESTMENT GROUP. Effective July 1, 2006 Frank Russell Investment Company changed its name to Russell Investment Company ("RIC"). RIC Funds are distributed by Russell Fund Distributors, Inc., and advised by Russell Investment Management Company ("RIMCo"). Effective July 1, 2006 RIMCo changed its name from Frank Russell Investment Management Company. Russell Investment Group and Standard & Poor's Corporation are the owners of the trademarks, service marks, and copyrights related to their respective indexes. Index performance is not indicative of the performance of any specific investment. Indexes are not managed and may not be invested in directly. RUSSELL INVESTMENT COMPANY EQUITY I FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 93.1% Auto and Transportation - 3.6% American Axle & Manufacturing Holdings, Inc. (N) 14,200 295 Autoliv, Inc. 8,800 531 BorgWarner, Inc. 7,000 480 Burlington Northern Santa Fe Corp. 123,118 9,894 CH Robinson Worldwide, Inc. 65,950 3,499 CSX Corp. 367,400 13,517 FedEx Corp. 78,341 8,649 General Motors Corp. (N) 18,500 607 Magna International, Inc. Class A 3,550 277 Navistar International Corp. (AE)(N) 151,200 6,689 Norfolk Southern Corp. 44,500 2,209 Southwest Airlines Co. 26,300 397 Toyota Motor Corp. - ADR 29,293 3,860 Union Pacific Corp. 53,342 5,388 United Parcel Service, Inc. Class B 22,000 1,590 US Airways Group, Inc. (AE) 75,288 4,215 Visteon Corp. (AE)(N) 233,650 1,869 ------------ 63,966 ------------ Consumer Discretionary - 13.7% Abercrombie & Fitch Co. Class A 16,900 1,344 Accenture, Ltd. Class A 77,750 2,935 Advance Auto Parts, Inc. 28,100 1,066 Big Lots, Inc. (AE)(N) 17,400 451 Black & Decker Corp. 4,800 419 Carnival Corp. 24,800 1,279 CBS Corp. Class B 43,200 1,347 Coach, Inc. (AE) 67,870 3,112 Costco Wholesale Corp. 84,900 4,770 Dollar General Corp. (N) 76,400 1,294 eBay, Inc. (AE) 66,100 2,141 Electronic Arts, Inc. (AE) 190,600 9,530 Family Dollar Stores, Inc. 8,400 272 Federated Department Stores, Inc. 218,832 9,079 Focus Media Holding, Ltd. - ADR (AE) 25,250 2,087 Four Seasons Hotels, Inc. 52,879 4,403 GameStop Corp. Class A (AE)(N) 25,850 1,381 Gannett Co., Inc. 16,800 977 Gap, Inc. (The) 104,000 1,994 Google, Inc. Class A (AE) 51,268 25,701 Harman International Industries, Inc. 12,600 1,192 Hewitt Associates, Inc. Class A (AE) 113,000 3,044 Idearc, Inc. (AE)(N) 3,198 104 Intercontinental Hotels Group PLC - ADR 147,100 3,698 International Game Technology 69,140 3,005 Interpublic Group of Cos., Inc. (AE)(N) 40,900 538 JC Penney Co., Inc. 36,000 2,925 Jones Apparel Group, Inc. 15,700 536 Kimberly-Clark Corp. 6,350 441
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Kohl's Corp. (AE)(N) 30,900 2,191 Las Vegas Sands Corp. (AE)(N) 133,067 13,848 Liberty Global, Inc. Class A (AE)(N) 1 -- Liberty Global, Inc. Series C (AE) 22,986 649 Liberty Media Holding Corp. Series A (AE) 29,962 3,065 Limited Brands, Inc. 21,650 605 Liz Claiborne, Inc. (N) 64,600 2,868 Lowe's Cos., Inc. 156,575 5,278 Mattel, Inc. 37,500 913 McDonald's Corp. 399,800 17,731 McGraw-Hill Cos., Inc. (The) 44,100 2,958 MGM Mirage (AE)(N) 80,267 5,616 Monster Worldwide, Inc. (AE) 41,100 2,031 News Corp. Class A 106,140 2,468 Nike, Inc. Class B 61,500 6,077 Nordstrom, Inc. 17,421 971 Nutri System, Inc. (AE)(N) 20,570 906 Office Depot, Inc. (AE) 13,700 512 Pinnacle Entertainment, Inc. (AE) 22,935 792 Polo Ralph Lauren Corp. Class A 20,600 1,690 Quiksilver, Inc. (AE)(N) 169,900 2,414 RadioShack Corp. (N) 26,800 592 Saks, Inc. (N) 16,300 306 Sears Holdings Corp. (AE) 8,800 1,555 Staples, Inc. 229,100 5,892 Starbucks Corp. (AE) 405,284 14,161 Starwood Hotels & Resorts Worldwide, Inc. (o) 90,198 5,645 Station Casinos, Inc. (N) 34,831 2,898 Target Corp. 163,790 10,050 Tech Data Corp. (AE) 10,600 394 Time Warner, Inc. 338,700 7,407 Tribune Co. 22,100 675 Under Armour, Inc. Class A (AE)(N) 24,500 1,245 Urban Outfitters, Inc. (AE)(N) 108,600 2,650 VF Corp. 7,500 569 Viacom, Inc. Class A (AE) 191,520 7,789 Wal-Mart Stores, Inc. 138,800 6,619 Walt Disney Co. (The) 15,300 538 Wendy's International, Inc. 15,800 537 Wynn Resorts, Ltd. (N) 15,145 1,692 XM Satellite Radio Holdings, Inc. Class A (AE)(N) 253,250 3,599 Yum! Brands, Inc. 54,775 3,287 ------------ 242,748 ------------
Equity I Fund 3 RUSSELL INVESTMENT COMPANY EQUITY I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Consumer Staples - 6.8% Altria Group, Inc. 338,839 29,611 Coca-Cola Co. (The) 108,107 5,176 Coca-Cola Enterprises, Inc. 27,100 556 Colgate-Palmolive Co. 70,000 4,781 ConAgra Foods, Inc. 11,300 291 Constellation Brands, Inc. Class A (AE)(N) 120,700 2,986 CVS Corp. 91,950 3,094 Diageo PLC - ADR 59,340 4,672 General Mills, Inc. 3,700 212 Heineken NV - ADR 73,888 1,866 HJ Heinz Co. 13,500 636 Kellogg Co. 8,100 399 Kroger Co. (The) 35,400 906 Molson Coors Brewing Co. Class B 36,600 2,957 PepsiCo, Inc. 350,023 22,835 Procter & Gamble Co. 451,228 29,271 Safeway, Inc. 31,800 1,146 Sara Lee Corp. 40,100 688 Smithfield Foods, Inc. (AE)(N) 8,400 221 Tyson Foods, Inc. Class A 64,450 1,144 UST, Inc. (N) 11,200 643 Walgreen Co. (N) 157,300 7,126 ------------ 121,217 ------------ Financial Services - 20.5% ACE, Ltd. 5,300 306 Allstate Corp. (The) 123,860 7,451 American Express Co. 150,300 8,750 American International Group, Inc. 390,000 26,695 Annaly Capital Management, Inc. (o) 303,700 4,185 AON Corp. 21,650 776 Astoria Financial Corp. 8,400 249 Bank of America Corp. 589,671 31,005 Bank of New York Co., Inc. (The) (N) 83,100 3,325 BB&T Corp. 12,800 541 Capital One Financial Corp. 64,371 5,175 CB Richard Ellis Group, Inc. Class A (AE) 80,105 3,013 Charles Schwab Corp. (The) 179,880 3,403 Chicago Mercantile Exchange Holdings, Inc. Class A 5,810 3,273 Chubb Corp. 40,700 2,118 Citigroup, Inc. 538,471 29,686 Comerica, Inc. (N) 13,200 783 Countrywide Financial Corp. 315,400 13,714 Fannie Mae 293,580 16,596 Fidelity National Financial, Inc. Class A 38,441 913 Fifth Third Bancorp 4,800 191 First American Corp. 78,200 3,314 Freddie Mac 80,450 5,224
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Genworth Financial, Inc. Class A 338,890 11,827 Goldman Sachs Group, Inc. 141,585 30,039 Hartford Financial Services Group, Inc. 63,730 6,049 Hudson City Bancorp, Inc. 48,900 673 IndyMac Bancorp, Inc. (N) 75,200 2,925 IntercontinentalExchange, Inc. (AE) 17,960 2,345 iShares Russell 1000 Value Index Fund 33,100 2,770 JPMorgan Chase & Co. 551,200 28,073 KeyCorp 26,500 1,011 Lehman Brothers Holdings, Inc. 106,844 8,787 Lincoln National Corp. 5,200 349 Loews Corp. 8,650 376 MBIA, Inc. (N) 11,100 797 Merrill Lynch & Co., Inc. 146,500 13,707 Metlife, Inc. 174,440 10,836 MGIC Investment Corp. (N) 23,500 1,450 Morgan Stanley 53,900 4,462 National City Corp. (N) 37,010 1,401 Old Republic International Corp. 28,600 638 PartnerRe, Ltd. (N) 5,300 360 Paychex, Inc. 189,600 7,586 PMI Group, Inc. (The) 21,700 1,038 PNC Financial Services Group, Inc. 42,370 3,126 RenaissanceRe Holdings, Ltd. 33,875 1,804 St. Paul Travelers Cos., Inc. (The) 128,614 6,540 SunTrust Banks, Inc. 56,030 4,656 Torchmark Corp. 3,400 221 UBS AG 201,995 12,728 UnumProvident Corp. (N) 63,000 1,386 US Bancorp 7,974 284 Wachovia Corp. 166,500 9,407 Waddell & Reed Financial, Inc. Class A 9,200 236 Washington Mutual, Inc. (N) 59,335 2,646 Wells Fargo & Co. 329,935 11,851 Western Union Co. (The) 63,900 1,428 XL Capital, Ltd. Class A 4,750 328 ------------ 364,826 ------------ Health Care - 11% Abbott Laboratories 116,400 6,169 Allergan, Inc. 39,403 4,599 AmerisourceBergen Corp. Class A 16,300 854 Amgen, Inc. (AE) 83,943 5,907 Amylin Pharmaceuticals, Inc. (AE)(N) 50,053 1,941 Baxter International, Inc. 188,450 9,358 Biogen Idec, Inc. (AE) 36,400 1,760
4 Equity I Fund RUSSELL INVESTMENT COMPANY EQUITY I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- BioMarin Pharmaceuticals, Inc. (AE) 36,800 697 Boston Scientific Corp. (AE) 86,195 1,590 Bristol-Myers Squibb Co. 111,700 3,216 Caremark Rx, Inc. 44,000 2,695 Celgene Corp. (AE)(N) 71,516 3,839 Community Health Systems, Inc. (AE)(N) 47,600 1,702 Covance, Inc. (AE) 43,860 2,704 Eli Lilly & Co. 76,558 4,143 Genentech, Inc. (AE) 244,081 21,325 Genzyme Corp. (AE) 38,688 2,543 Gilead Sciences, Inc. (AE) 105,450 6,783 Hospira, Inc. (AE) 39,100 1,438 Human Genome Sciences, Inc. (AE)(N) 190,000 2,238 Humana, Inc. (AE) 13,795 766 Intuitive Surgical, Inc. (AE)(N) 19,220 1,891 Invitrogen Corp. (AE)(N) 44,600 2,731 Johnson & Johnson 210,850 14,085 McKesson Corp. 46,500 2,592 Medco Health Solutions, Inc. (AE) 55,379 3,279 Medtronic, Inc. 28,158 1,505 Merck & Co., Inc. 232,794 10,418 New River Pharmaceuticals, Inc. (AE)(N) 20,905 1,169 Novartis AG - ADR 197,990 11,422 Omnicare, Inc. (N) 125,300 5,036 PDL BioPharma, Inc. (AE)(N) 122,700 2,517 Pfizer, Inc. 172,200 4,518 Schering-Plough Corp. 33,900 847 Sepracor, Inc. (AE)(N) 12,500 713 St. Jude Medical, Inc. (AE) 42,140 1,802 Stryker Corp. 96,200 5,959 Tenet Healthcare Corp. (AE)(N) 67,200 474 Thermo Fisher Scientific, Inc. (AE) 155,820 7,456 UnitedHealth Group, Inc. 309,715 16,186 Vertex Pharmaceuticals, Inc. (AE)(N) 101,300 3,581 WellPoint, Inc. (AE) 26,832 2,103 Wyeth 164,580 8,132 ------------ 194,683 ------------ Integrated Oils - 4.3% BP PLC - ADR 5,400 343 Chevron Corp. 163,651 11,927 ConocoPhillips 109,760 7,289 Exxon Mobil Corp. (N) 299,960 22,227 Hess Corp. 345,040 18,629 Marathon Oil Corp. 41,600 3,758 Occidental Petroleum Corp. 57,700 2,675 Total SA - ADR 152,230 10,359 ------------ 77,207 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Materials and Processing - 4.0% Air Products & Chemicals, Inc. 3,743 279 Alcoa, Inc. (N) 31,100 1,005 Arcelor Mittal Class A 8,800 408 Archer-Daniels-Midland Co. 62,360 1,996 Ashland, Inc. 8,500 591 Avery Dennison Corp. 3,400 232 Bunge, Ltd. (N) 28,540 2,196 Cameco Corp. 212,200 8,091 Carpenter Technology Corp. 35,800 4,192 Celanese Corp. Class A (N) 102,200 2,683 Cytec Industries, Inc. 17,850 1,039 Dow Chemical Co. (The) 37,500 1,558 EI Du Pont de Nemours & Co. 40,850 2,025 Hercules, Inc. (AE) 23,400 459 Imperial Chemical Industries PLC - ADR (N) 80,900 2,942 International Paper Co. 9,000 303 Louisiana-Pacific Corp. 7,600 174 Lubrizol Corp. 12,050 621 Masco Corp. 131,690 4,213 Monsanto Co. 150,890 8,313 PPG Industries, Inc. (N) 46,940 3,112 Praxair, Inc. 99,488 6,274 Rio Tinto PLC - ADR (N) 31,650 6,843 Smurfit-Stone Container Corp. (AE) 39,000 421 Sonoco Products Co. 6,300 243 St. Joe Co. (The) (N) 30,940 1,791 Syngenta AG - ADR 87,403 3,240 Temple-Inland, Inc. 102,600 5,124 United States Steel Corp. 7,800 651 ------------ 71,019 ------------ Miscellaneous - 3.4% 3M Co. 59,600 4,428 Eaton Corp. 12,200 956 General Electric Co. 999,867 36,045 Honeywell International, Inc. 85,000 3,884 SPX Corp. 8,950 628 Textron, Inc. 105,318 9,812 Tyco International, Ltd. 135,150 4,309 ------------ 60,062 ------------ Other Energy - 3.4% Apache Corp. 26,000 1,897 Baker Hughes, Inc. 96,900 6,689 Cameron International Corp. (AE) 56,312 2,956 Consol Energy, Inc. 63,050 2,171 Devon Energy Corp. 57,410 4,024 Halliburton Co. 209,600 6,192
Equity I Fund 5 RUSSELL INVESTMENT COMPANY EQUITY I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Massey Energy Co. (N) 214,450 5,080 NRG Energy, Inc. (AE)(N) 15,330 919 Range Resources Corp. (N) 49,072 1,506 Reliant Energy, Inc. (AE)(N) 681,450 10,140 Schlumberger, Ltd. 189,352 12,022 XTO Energy, Inc. 135,750 6,851 ------------ 60,447 ------------ Producer Durables - 5.9% AGCO Corp. (AE)(N) 135,100 4,589 Agilent Technologies, Inc. (AE) 90,350 2,891 Alcatel-Lucent - ADR 206,600 2,686 American Power Conversion Corp. 92,700 2,850 Boeing Co. 120,552 10,797 Bombardier, Inc. (AE) 534,050 2,019 Caterpillar, Inc. 55,700 3,569 Centex Corp. 78,200 4,198 Crown Castle International Corp. (AE)(N) 87,250 3,068 Cummins, Inc. 3,900 525 Deere & Co. 81,990 8,222 Emerson Electric Co. 92,700 4,169 Goodrich Corp. 57,950 2,841 Ingersoll-Rand Co., Ltd. Class A 8,800 377 KB Home (N) 48,363 2,622 Kla-Tencor Corp. 89,050 4,384 Lennar Corp. Class A (N) 36,384 1,979 Lexmark International, Inc. Class A (AE)(N) 5,800 366 Lockheed Martin Corp. 158,665 15,421 Nokia OYJ - ADR 79,000 1,746 Northrop Grumman Corp. 108,660 7,708 Pitney Bowes, Inc. 3,500 167 Pulte Homes, Inc. 94,550 3,247 Roper Industries, Inc. (N) 43,400 2,253 United Technologies Corp. 186,178 12,664 ------------ 105,358 ------------ Technology - 11.9% Adobe Systems, Inc. (AE) 72,600 2,822 Akamai Technologies, Inc. (AE)(N) 46,010 2,585 Apple, Inc. (AE) 203,330 17,432 Arrow Electronics, Inc. (AE) 16,500 582 AU Optronics Corp. - ADR (N) 262,196 3,521 Avnet, Inc. (AE) 20,400 633 BearingPoint, Inc. (AE)(N) 263,400 2,110 Broadcom Corp. Class A (AE) 160,310 5,117 Celestica, Inc. (AE)(N) 161,850 965 Cisco Systems, Inc. (AE) 673,419 17,906 Corning, Inc. (AE) 210,650 4,390 Dell, Inc. (AE) 435,850 10,569 Electronic Data Systems Corp. 17,000 447 EMC Corp. (AE) 147,300 2,061
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- F5 Networks, Inc. (AE) 23,470 1,677 Flextronics International, Ltd. (AE) 20,450 238 General Dynamics Corp. 73,818 5,769 Hewlett-Packard Co. 578,177 25,024 Intel Corp. 657,387 13,779 International Business Machines Corp. 50,400 4,997 International Rectifier Corp. (AE) 52,300 2,182 JDS Uniphase Corp. (AE)(N) 281,100 4,998 L-3 Communications Holdings, Inc. 42,100 3,467 Marvell Technology Group, Ltd. (AE) 36,408 666 Maxim Integrated Products, Inc. 60,600 1,867 Microsoft Corp. 454,613 14,029 Motorola, Inc. 279,200 5,542 National Semiconductor Corp. 112,600 2,604 Nvidia Corp. (AE) 78,310 2,400 Oracle Corp. (AE) 194,060 3,330 PerkinElmer, Inc. 130,300 3,110 Qualcomm, Inc. 436,700 16,446 Raytheon Co. 10,100 524 Research In Motion, Ltd. (AE) 65,260 8,339 Salesforce.com, Inc. (AE)(N) 69,250 3,035 SanDisk Corp. (AE)(N) 111,100 4,466 Sanmina-SCI Corp. (AE) 132,400 463 Seagate Technology, Inc. (AE) 9,400 -- Solectron Corp. (AE)(N) 97,600 317 Sun Microsystems, Inc. (AE) 515,630 3,424 Sunpower Corp. Class A (AE)(N) 30,200 1,338 Texas Instruments, Inc. 221,570 6,911 ------------ 212,082 ------------ Utilities - 4.5% Ameren Corp. 5,100 271 America Movil SA de CV Series L 53,814 2,387 American Electric Power Co., Inc. 20,400 888 AT&T, Inc. 458,938 17,270 Comcast Corp. Class A (AE) 318,757 14,127 Dominion Resources, Inc. 142,900 11,855 Embarq Corp. 55,338 3,072 Entergy Corp. 8,100 752 FPL Group, Inc. (N) 50,600 2,866 Level 3 Communications, Inc. (AE)(N) 159,500 991 NII Holdings, Inc. (AE) 46,600 3,439 Progress Energy, Inc. (N) 3,100 147 Progress Energy, Inc. - CVO 3,200 1 Sprint Nextel Corp. 549,910 9,805 Time Warner Telecom, Inc. Class A (AE) 58,640 1,365
6 Equity I Fund RUSSELL INVESTMENT COMPANY EQUITY I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- TXU Corp. 80,230 4,339 Verizon Communications, Inc. 168,479 6,490 ------------ 80,065 ------------ TOTAL COMMON STOCKS (cost $1,369,463) 1,653,680 ------------ PREFERRED STOCKS - (0.0%) Producer Durables - (0.0%) General Motors Corp. 36,350 867 ------------ TOTAL PREFERRED STOCKS (cost $618) 867 ------------ SHORT-TERM INVESTMENTS - 6.6% Russell Investment Company Money Market Fund 110,959,285 110,959 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 6,000 5,966 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $116,925) 116,925 ------------ OTHER SECURITIES - 8.3% Russell Investment Company Money Market Fund (X) 36,362,727 36,363 State Street Securities Lending Quality Trust (X) 110,867,428 110,867 ------------ TOTAL OTHER SECURITIES (cost $147,230) 147,230 ------------ TOTAL INVESTMENTS - 108.0% (identified cost $1,634,236) 1,918,702 OTHER ASSETS AND LIABILITIES, NET - 8.0% (142,454) ------------ NET ASSETS - 100.0% 1,776,248 ============
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Russell 1000 Index expiration date 03/07 (16) 6,298 75 Russell 1000 Mini Index (CME) expiration date 03/07 (40) 3,148 41 S&P 500 E-Mini Index (CME) expiration date 03/07 (191) 13,781 125 S&P 500 Index (CME) expiration date 03/07 (184) 66,378 940 S&P Midcap 400 E-Mini Index (CME) expiration date 03/07 (318) 26,613 441 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 1,622 ===============
See accompanying notes which are an integral part of the schedules of investments. Equity I Fund 7 RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 95.4% Auto and Transportation - 4.1% AAR Corp. (AE)(N) 39,300 1,171 Aftermarket Technology Corp. (AE) 8,400 181 American Commercial Lines, Inc. (AE)(N) 10,200 718 AMR Corp. (AE) 17,000 630 Arctic Cat, Inc. (N) 9,100 168 ArvinMeritor, Inc. (N) 85,569 1,647 Autoliv, Inc. (N) 9,200 555 Bristow Group, Inc. (AE)(N) 30,275 1,131 Commercial Vehicle Group, Inc. (AE) 7,900 160 Continental Airlines, Inc. Class A (AE) 4,807 199 Dana Corp. (N) 116,600 138 Danaos Corp. 9,100 220 DryShips, Inc. (N) 41,528 709 ExpressJet Holdings, Inc. Class A (AE) 70,843 553 Freightcar America, Inc. 1,932 112 Frozen Food Express Industries (N) 59,058 498 Grupo Aeroportuario del Centro Norte Sab de CV - ADR (AE) 28,500 691 Grupo Aeroportuario del Sureste SAB de CV - ADR 15,800 687 Gulfmark Offshore, Inc. (AE) 11,121 402 Heartland Express, Inc. 9,900 168 Horizon Lines, Inc. Class A 37,043 1,102 HUB Group, Inc. Class A (AE) 16,667 498 Kansas City Southern (AE)(N) 14,200 427 Laidlaw International, Inc. 35,300 1,049 Lear Corp. 25,700 870 Modine Manufacturing Co. 5,600 147 Navistar International Corp. (AE)(N) 27,100 1,199 OMI Corp. (N) 31,330 691 PAM Transportation Services (AE) 6,300 138 Republic Airways Holdings, Inc. (AE) 16,800 321 Saia, Inc. (AE) 16,477 439 Skywest, Inc. 20,227 549 Standard Motor Products, Inc. 10,732 170 StealthGas, Inc. 54,584 663 Teekay Shipping Corp. (N) 20,213 1,015 Tidewater, Inc. (N) 20,800 1,073 TRW Automotive Holdings Corp. (AE) 30,600 800 US Xpress Enterprises, Inc. Class A (AE) 17,000 314 UTI Worldwide, Inc. 81,364 2,473 Visteon Corp. (AE)(N) 28,100 225 Vitran Corp., Inc. Class A (AE) 38,400 676 Wabtec Corp. 4,441 142 YRC Worldwide, Inc. (AE)(N) 21,000 931 ------------ 26,650 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Consumer Discretionary - 19.1% 24/7 Real Media, Inc. (AE)(N) 64,200 649 Abercrombie & Fitch Co. Class A 12,403 987 ABM Industries, Inc. 9,223 238 Activision, Inc. (AE) 196,361 3,344 Adesa, Inc. 15,000 435 Advance Auto Parts, Inc. 14,000 531 Advisory Board Co. (The) (AE) 30,389 1,711 AFC Enterprises (AE)(N) 12,600 211 Alloy, Inc. (AE) 5,710 68 American Eagle Outfitters, Inc. 19,050 617 American Greetings Corp. Class A 15,910 382 American Woodmark Corp. 13,542 609 AMN Healthcare Services, Inc. (AE) 62,100 1,607 aQuantive, Inc. (AE) 51,662 1,385 Asbury Automotive Group, Inc. 13,513 331 Autonation, Inc. (AE)(N) 11,900 267 Baidu.com - ADR (AE) 21,135 2,641 Bare Escentuals, Inc. (AE)(N) 29,358 1,071 Barnes & Noble, Inc. 9,100 354 Bebe Stores, Inc. 70,303 1,302 Big Lots, Inc. (AE) 71,098 1,844 Blockbuster, Inc. Class A (AE) 71,517 464 Bob Evans Farms, Inc. 13,352 454 Books-A-Million, Inc. Class A 5,101 97 Bowne & Co., Inc. 10,500 158 Bright Horizons Family Solutions, Inc. (AE) 15,900 623 Brown Shoe Co., Inc. 17,110 930 Buckle, Inc. (The) 8,550 287 Carmax, Inc. (AE)(N) 37,000 2,125 CBRL Group, Inc. (N) 1,984 93 CCA Industries, Inc. (AE) 26,238 292 CEC Entertainment, Inc. (AE) 24,700 1,045 Central Parking Corp. (N) 8,156 162 Cenveo, Inc. (AE) 6,900 161 Charlotte Russe Holding, Inc. (AE) 997 30 Chemed Corp. 18,105 661 Children's Place Retail Stores, Inc. (The) (AE) 22,127 1,200 Chipotle Mexican Grill, Inc. Class A (AE)(N) 6,200 368 Churchill Downs, Inc. 1,900 79 Citadel Broadcasting Corp. (N) 10,200 108 CMGI, Inc. (AE) 174,723 222 Coinstar, Inc. (AE) 12,881 390 Consolidated Graphics, Inc. (AE) 8,700 539 Convergys Corp. (AE) 50,600 1,318 Core-Mark Holding Co., Inc. (AE)(N) 2,300 72 Corinthian Colleges, Inc. (AE)(N) 37,100 485 Corporate Executive Board Co. 18,546 1,683
8 Equity II Fund RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- CRA International, Inc. (AE) 5,221 282 CROCS, Inc. (AE)(N) 53,500 2,693 CSK Auto Corp. (AE) 15,100 250 CSS Industries, Inc. 1,100 40 DeVry, Inc. (N) 38,800 1,093 Dick's Sporting Goods, Inc. (AE)(N) 4,700 242 Dillard's, Inc. Class A 34,100 1,171 Dolby Laboratories, Inc. Class A (AE) 60,400 2,023 Dollar Tree Stores, Inc. (AE) 46,300 1,457 DreamWorks Animation SKG, Inc. Class A (AE)(N) 26,100 736 Dress Barn, Inc. (AE) 15,163 341 DSW, Inc. Class A (AE) 11,360 455 Earthlink, Inc. (AE)(N) 74,600 545 Electronic Arts, Inc. (AE) 33,766 1,688 Elizabeth Arden, Inc. (AE)(N) 15,700 297 Ethan Allen Interiors, Inc. (N) 21,789 821 Ezcorp, Inc. Class A (AE) 29,112 487 Family Dollar Stores, Inc. 17,100 554 Federated Department Stores, Inc. 21,413 888 Focus Media Holding, Ltd. - ADR (AE) 21,900 1,810 Foot Locker, Inc. 80,563 1,808 Forrester Research, Inc. (AE) 41,474 1,168 FTD Group, Inc. (AE) 26,400 487 GameStop Corp. Class A (AE) 25,434 1,359 Gmarket, Inc. - ADR (N) 39,700 850 Great Wolf Resorts, Inc. (AE) 18,400 260 Group 1 Automotive, Inc. (N) 13,400 710 Guess?, Inc. (AE)(N) 31,900 2,300 Gymboree Corp. (AE) 13,497 584 Hasbro, Inc. 42,600 1,210 Haverty Furniture Cos., Inc. 14,225 218 Helen of Troy, Ltd. (AE)(N) 57,235 1,380 Home Solutions of America, Inc. (AE)(N) 108,000 692 Iconix Brand Group, Inc. (AE)(N) 121,469 2,418 ICT Group, Inc. (AE) 6,081 173 IKON Office Solutions, Inc. 35,700 532 infoUSA, Inc. 50,818 610 Interstate Hotels & Resorts, Inc. (AE) 28,316 208 ITT Educational Services, Inc. (AE)(N) 14,600 1,133 J Crew Group, Inc. (AE)(N) 32,200 1,170 Jack in the Box, Inc. (AE) 18,293 1,130 Jakks Pacific, Inc. (AE)(N) 18,100 367 Jones Apparel Group, Inc. 17,916 612 JOS A Bank Clothiers, Inc. (AE)(N) 21,000 650 Journal Register Co. 31,600 221 K-Swiss, Inc. Class A 15,700 496 K2, Inc. (AE) 46,459 561 Kellwood Co. 17,752 582 Kenneth Cole Productions, Inc. Class A (N) 4,000 95 Knology, Inc. (AE) 5,262 70 Knot, Inc. (The) (AE)(N) 28,500 860
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Korn/Ferry International (AE)(N) 74,741 1,785 Lakes Entertainment, Inc. (AE)(N) 7,200 62 Leapfrog Enterprises, Inc. Class A (AE)(N) 34,800 373 Lee Enterprises, Inc. (N) 31,175 1,036 Libbey, Inc. (N) 7,900 94 LIFE TIME Fitness, Inc. (AE)(N) 51,100 2,770 Lightbridge, Inc. (AE)(N) 17,739 285 Liz Claiborne, Inc. (N) 19,019 844 LKQ Corp. (AE) 27,646 592 Lodgenet Entertainment Corp. (AE) 13,344 363 Maidenform Brands, Inc. (AE) 8,966 180 McClatchy Co. Class A (N) 37,863 1,465 McCormick & Schmick's Seafood Restaurants, Inc. (AE) 3,700 93 Men's Wearhouse, Inc. (The) 31,500 1,353 Meredith Corp. 18,800 1,108 Morton's Restaurant Group, Inc. (AE) 3,500 65 Mothers Work, Inc. (AE) 2,779 93 Movado Group, Inc. 4,300 123 Movie Gallery, Inc. (AE) 14,599 56 MPS Group, Inc. (AE) 59,806 896 Navarre Corp. (AE)(N) 6,200 25 O'Charleys, Inc. (AE) 32,535 691 O'Reilly Automotive, Inc. (AE) 36,969 1,291 OfficeMax, Inc. 26,000 1,256 On Assignment, Inc. (AE) 42,500 549 Orient-Express Hotels, Ltd. Class A 41,214 1,964 Pacific Sunwear of California, Inc. (AE)(N) 36,422 714 Payless Shoesource, Inc. (AE) 18,514 629 Penn National Gaming, Inc. (AE) 28,952 1,269 Perry Ellis International, Inc. (AE) 28,452 856 Phillips-Van Heusen Corp. 58,079 3,203 Pier 1 Imports, Inc. (N) 64,500 437 Prestige Brands Holdings, Inc. (AE) 17,700 225 Priceline.com, Inc. (AE) 23,400 997 Quiksilver, Inc. (AE)(N) 46,800 665 RadioShack Corp. (N) 26,300 581 RC2 Corp. (AE) 3,056 121 Rent-A-Center, Inc. Class A (AE) 35,300 1,040 Republic Services, Inc. Class A 32,816 1,419 Retail Ventures, Inc. (AE) 7,099 140 Rush Enterprises, Inc. Class A (AE) 6,800 125 Scholastic Corp. (AE)(N) 48,581 1,717 Service Corp. International 44,200 471 Shoe Carnival, Inc. (AE) 9,372 298
Equity II Fund 9 RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Sirva, Inc. (AE) 28,400 88 Skechers USA, Inc. Class A (AE) 4,000 142 Sonic Automotive, Inc. Class A 18,300 574 Spanish Broadcasting System, Inc. Class A (AE)(N) 17,700 72 Stage Stores, Inc. 15,506 498 Standard Parking Corp. (AE) 3,024 115 Stanley Furniture Co., Inc. 3,683 79 Steak N Shake Co. (The) (AE) 1,900 34 Stewart Enterprises, Inc. Class A 14,000 100 Sturm Ruger & Co., Inc. (AE) 8,624 90 Take-Two Interactive Software, Inc. (AE)(N) 27,800 483 TeleTech Holdings, Inc. (AE)(N) 61,500 1,657 Topps Co., Inc. (The) (N) 24,600 242 Tractor Supply Co. (AE) 21,022 1,058 Triarc Cos., Inc. Class A 30,100 588 Under Armour, Inc. Class A (AE)(N) 22,600 1,148 Unifirst Corp. 2,900 120 United Online, Inc. 69,044 969 Urban Outfitters, Inc. (AE)(N) 34,900 852 Viad Corp. 12,800 537 VistaPrint, Ltd. (AE)(N) 14,400 620 Warnaco Group, Inc. (The) (AE) 15,600 441 Washington Post Co. (The) Class B (N) 896 683 Waste Connections, Inc. (AE) 24,004 1,046 Watson Wyatt Worldwide, Inc. Class A 2,000 89 West Marine, Inc. (AE) 11,448 199 WMS Industries, Inc. (AE)(N) 13,400 531 ------------ 124,791 ------------ Consumer Staples - 1.7% Alliance One International, Inc. (AE) 141,421 1,085 Boston Beer Co., Inc. Class A (AE)(N) 4,600 162 Coca-Cola Bottling Co. Consolidated 8,320 522 Dean Foods Co. (AE) 11,100 491 Del Monte Foods Co. 52,000 596 Imperial Sugar Co. (N) 15,600 486 J&J Snack Foods Corp. 2,833 117 Loews Corp. - Carolina Group 18,600 1,275 McCormick & Co., Inc. 26,300 1,027 Molson Coors Brewing Co. Class B 26,700 2,157 Nash Finch Co. 5,398 156 NBTY, Inc. (AE) 19,029 987 Pathmark Stores, Inc. (AE) 21,700 238 PepsiAmericas, Inc. 16,300 359 Premium Standard Farms, Inc. 21,207 403 Reddy Ice Holdings, Inc. 11,497 298 Ruddick Corp. 4,800 133 Schweitzer-Mauduit International, Inc. 8,643 210 Spartan Stores, Inc. 20,996 497
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Universal Corp. 963 46 Weis Markets, Inc. 2,220 96 ------------ 11,341 ------------ Financial Services - 16.8% Accredited Home Lenders Holding Co. (AE) 7,690 214 Advance America Cash Advance Centers, Inc. 9,700 135 Advent Software, Inc. (AE)(N) 54,800 1,959 Affiliated Managers Group, Inc. (AE) 29,786 3,318 AG Edwards, Inc. 7,934 525 Alliance Data Systems Corp. (AE) 59,940 4,072 AMB Property Corp. (o) 17,900 1,089 American Financial Group, Inc. 8,400 297 American Home Mortgage Investment Corp. (o)(N) 25,404 888 American Physicians Capital, Inc. (AE) 2,300 89 Amerisafe, Inc. (AE) 15,801 261 Annaly Capital Management, Inc. (o) 59,500 820 Anthracite Capital, Inc. (o) 5,807 79 Anworth Mortgage Asset Corp. (o) 45,500 418 Apollo Investment Corp. 43,200 959 Arbor Realty Trust, Inc. (o)(N) 5,200 166 Arch Capital Group, Ltd. (AE) 7,700 497 Ares Capital Corp. 41,000 813 Argonaut Group, Inc. (AE) 9,175 308 Arthur J Gallagher & Co. (N) 25,400 728 Ashford Hospitality Trust, Inc. (o) 59,720 735 Aspen Insurance Holdings, Ltd. 29,401 753 Asset Acceptance Capital Corp. (AE) 4,100 63 Assurant, Inc. 35,118 1,952 Axis Capital Holdings, Ltd. 21,672 714 Bancfirst Corp. 2,500 122 Bankunited Financial Corp. Class A (N) 52,135 1,438 Banner Corp. 3,000 129 Bear Stearns Cos., Inc. (The) (N) 6,340 1,045 BOK Financial Corp. 4,720 251 Bristol West Holdings, Inc. 1,000 17 Capital Trust, Inc. Class A (o)(N) 19,700 977 CapitalSource, Inc. (o)(N) 29,000 806 Cash America International, Inc. 23,415 1,000 CBL & Associates Properties, Inc. (o) 7,900 371 Central Pacific Financial Corp. 11,214 438 CharterMac (N) 3,900 82 Chemical Financial Corp. (N) 3,990 119 Chittenden Corp. (N) 14,600 445 CIT Group, Inc. 12,100 713 City Bank (N) 2,553 87 City Holding Co. 2,529 101
10 Equity II Fund RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- CNA Surety Corp. (AE) 34,270 728 Colonial BancGroup, Inc. (The) (N) 59,225 1,453 Colonial Properties Trust (o) 14,100 693 Commerce Bancshares, Inc. (N) 6,720 330 Commerce Group, Inc. 22,062 666 Community Bancorp (AE) 6,153 206 Corus Bankshares, Inc. (N) 56,997 1,214 Deerfield Triarc Capital Corp. (o) 64,200 1,072 Deluxe Corp. 26,300 787 DiamondRock Hospitality Co. (o) 22,900 432 Downey Financial Corp. 7,577 542 East West Bancorp, Inc. (N) 3,400 131 Entertainment Properties Trust (o) 6,013 390 Euronet Worldwide, Inc. (AE) 62,732 1,810 Extra Space Storage, Inc. (o)(N) 12,100 239 Factset Research Systems, Inc. 7,541 438 FBL Financial Group, Inc. Class A 1,800 70 FelCor Lodging Trust, Inc. (o) 40,800 900 Feldman Mall Properties, Inc. 55,300 648 First American Corp. 62,919 2,667 First Bancorp 7,500 80 First Cash Financial Services, Inc. (AE) 23,773 558 First Community Bancorp, Inc. (N) 2,800 149 First Mutual Bancshares, Inc. (N) 26,000 578 First Place Financial Corp. 2,853 68 First Regional Bancorp (AE)(N) 21,813 746 FirstFed Financial Corp. (AE) 16,316 1,125 Fulton Financial Corp. (N) 22,284 357 GFI Group, Inc. (AE)(N) 24,500 1,568 Global Payments, Inc. 27,142 1,025 Gramercy Capital Corp. (o) 1,749 63 Hanmi Financial Corp. 47,339 969 Hanover Insurance Group, Inc. (The) 500 24 HCC Insurance Holdings, Inc. 32,300 1,009 HealthExtras, Inc. (AE)(N) 34,600 884 Hersha Hospitality Trust (o)(N) 1,300 15 Highland Hospitality Corp. (o) 44,500 707 Hospitality Properties Trust (o) 29,900 1,459 HRPT Properties Trust (o)(N) 85,300 1,111 Huntington Bancshares, Inc. 9,900 230 IBERIABANK Corp. 1,600 92 IMPAC Mortgage Holdings, Inc. (o)(N) 65,421 564 International Securities Exchange Holdings, Inc. Class A (N) 22,000 911 Intervest Bancshares Corp. Class A (AE) 7,234 220 Investment Technology Group, Inc. (AE) 23,384 1,020 Investors Real Estate Trust (o) 7,900 82 IPC Holdings, Ltd. (N) 43,491 1,281 iStar Financial, Inc. (o) 46,275 2,321 ITLA Capital Corp. 500 30 JER Investors Trust, Inc. (o) 22,800 467
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- John H Harland Co. 2,679 135 Jones Lang LaSalle, Inc. 3,450 361 Knight Capital Group, Inc. Class A (AE)(N) 65,227 1,179 Kohlberg Capital Corp. (AE) 42,000 751 Kronos, Inc. (AE) 13,300 505 LTC Properties, Inc. (o) 10,092 285 Luminent Mortgage Capital, Inc. (o) 14,407 133 Macatawa Bank Corp. (N) 3,500 69 MCG Capital Corp. 62,700 1,240 Meadowbrook Insurance Group, Inc. (AE)(N) 10,000 100 Medical Properties Trust, Inc. (o) 5,852 91 Mercantile Bank Corp. 2,200 77 MFA Mortgage Investments, Inc. (o) 21,600 161 Municipal Mortgage & Equity LLC (N) 4,800 152 Nara Bancorp, Inc. 12,994 255 National Penn Bancshares, Inc. (N) 6,419 121 National Retail Properties, Inc. (o)(N) 55,700 1,323 Nationwide Financial Services, Inc. (N) 13,800 754 Navigators Group, Inc. (AE) 5,821 278 Nelnet, Inc. Class A (AE)(N) 14,300 396 New Century Financial Corp. (o)(N) 30,200 914 Newcastle Investment Corp. (o) 33,675 1,092 NorthStar Realty Finance Corp. (o)(N) 152,599 2,693 Ocwen Financial Corp. (AE) 12,643 178 Odyssey Re Holdings Corp. (N) 15,300 604 Ohio Casualty Corp. (N) 21,200 626 Oriental Financial Group 6,416 82 Pacific Capital Bancorp (N) 47,614 1,522 Pennsylvania Real Estate Investment Trust (o) 15,200 649 Philadelphia Consolidated Holding Co. (AE) 17,600 793 Pico Holdings, Inc. (AE) 5,100 219 Piper Jaffray Cos., Inc. (AE) 5,948 410 PMI Group, Inc. (The) 13,909 665 Preferred Bank 1,400 92 Protective Life Corp. 18,300 895 Provident Financial Holdings, Inc. 378 11 PS Business Parks, Inc. (o) 11,983 901 R&G Financial Corp. Class B 10,800 81 Radian Group, Inc. 14,700 885 RAIT Financial Trust (o)(N) 34,300 1,282 Raymond James Financial, Inc. 63,850 2,038 Redwood Trust, Inc. (o) 4,449 283
Equity II Fund 11 RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Reinsurance Group of America, Inc. (N) 20,100 1,169 RenaissanceRe Holdings, Ltd. 16,538 881 RLI Corp. 7,100 393 Ryder System, Inc. (N) 32,200 1,756 S1 Corp. (AE) 20,600 118 Safety Insurance Group, Inc. 18,706 914 SeaBright Insurance Holdings, Inc. (AE) 9,000 162 SEI Investments Co. 17,800 1,109 Southwest Bancorp, Inc. 24,061 641 Sovran Self Storage, Inc. (o) 13,598 816 Spirit Finance Corp. (o) 40,200 503 Stancorp Financial Group, Inc. 25,400 1,215 Sterling Bancorp Class N 4,305 80 Sterling Bancshares, Inc. 30,150 363 Sterling Financial Corp. 4,500 103 Sun Bancorp, Inc. (AE)(N) 700 14 Sunstone Hotel Investors, Inc. (o) 28,298 801 Susquehanna Bancshares, Inc. (N) 15,600 394 SWS Group, Inc. 24,091 608 Taylor Capital Group, Inc. 4,533 172 TCF Financial Corp. (N) 15,900 404 TD Banknorth, Inc. 23,429 756 Thornburg Mortgage, Inc. (o) 16,700 449 TierOne Corp. 9,527 287 Triad Guaranty, Inc. (AE) 10,006 515 U-Store-It Trust (o)(N) 29,400 646 Umpqua Holdings Corp. (N) 2,800 80 United America Indemnity, Ltd. Class A (AE) 5,500 133 Unitrin, Inc. 9,000 461 Ventas, Inc. (o) 5,200 240 Whitney Holding Corp. 14,950 473 Williams Scotsman International, Inc. (AE)(N) 5,000 101 Wilmington Trust Corp. (N) 9,900 415 Winston Hotels, Inc. (o) 5,600 78 World Acceptance Corp. (AE) 498 22 WSFS Financial Corp. 900 62 Zenith National Insurance Corp. 28,032 1,281 Zions Bancorporation 9,000 763 ------------ 109,781 ------------ Health Care - 12.1% Accelrys, Inc. (AE) 60,800 386 Adams Respiratory Therapeutics, Inc. (AE) 30,566 1,371 Advanced Medical Optics, Inc. (AE)(N) 18,200 669 Albany Molecular Research, Inc. (AE) 14,142 144 Alliance Imaging, Inc. (AE)(N) 10,200 71 Allscripts Healthcare Solutions, Inc. (AE) 51,281 1,569
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Amedisys, Inc. (AE) 21,133 683 American Medical Systems Holdings, Inc. (AE)(N) 146,998 2,925 American Oriental Bioengineering, Inc. (AE)(N) 37,600 483 AMERIGROUP Corp. (AE) 16,615 602 Applera Corp. - Celera Group (AE) 128,800 2,043 Apria Healthcare Group, Inc. (AE) 19,941 554 Arthrocare Corp. (AE) 34,787 1,284 Beckman Coulter, Inc. (N) 5,300 342 Bio-Rad Laboratories, Inc. Class A (AE) 8,129 699 Bruker BioSciences Corp. (AE) 13,424 100 Cerner Corp. (AE)(N) 48,300 2,170 Charles River Laboratories International, Inc. (AE) 19,900 896 Community Health Systems, Inc. (AE) 51,478 1,840 Conmed Corp. (AE) 7,247 175 Cooper Cos., Inc. (The) (N) 24,000 1,145 Corvel Corp. (AE) 22,250 1,049 Covance, Inc. (AE) 11,100 684 Cutera, Inc. (AE)(N) 18,500 528 DaVita, Inc. (AE) 79,109 4,319 Digene Corp. (AE) 15,600 803 Discovery Laboratories, Inc. (AE)(N) 34,800 87 Enzon Pharmaceuticals, Inc. (AE) 26,449 236 Haemonetics Corp. (AE) 24,356 1,175 Health Net, Inc. (AE)(N) 8,000 390 Healthcare Services Group (N) 57,200 1,654 Healthspring, Inc. (AE) 69,500 1,367 Healthways, Inc. (AE)(N) 22,570 1,025 Henry Schein, Inc. (AE)(N) 39,728 2,017 Hologic, Inc. (AE)(N) 70,023 3,890 Illumina, Inc. (AE)(N) 9,300 380 Immucor, Inc. (AE) 9,900 312 Intralase Corp. (AE)(N) 40,500 996 Invacare Corp. 10,900 235 Inverness Medical Innovations, Inc. (AE)(N) 21,500 886 King Pharmaceuticals, Inc. (AE) 80,500 1,438 Landauer, Inc. 2,913 150 LHC Group, Inc. (AE) 4,967 129 LifePoint Hospitals, Inc. (AE) 25,600 870 Medcath Corp. (AE) 24,401 699 Medical Action Industries, Inc. (AE) 5,441 172 Mentor Corp. 30,519 1,556 Mindray Medical International, Ltd. - ADR (AE)(N) 9,300 226 Molina Healthcare, Inc. (AE)(N) 19,385 598
12 Equity II Fund RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Myriad Genetics, Inc. (AE)(N) 21,800 779 Nabi Biopharmaceuticals (AE)(N) 23,700 137 Neurocrine Biosciences, Inc. (AE)(N) 14,500 203 Nighthawk Radiology Holdings, Inc. (AE)(N) 39,000 983 Noven Pharmaceuticals, Inc. (AE) 9,144 250 NuVasive, Inc. (AE)(N) 28,800 697 Omrix Biopharmaceuticals, Inc. (AE) 10,200 348 Palomar Medical Technologies, Inc. (AE)(N) 35,100 1,747 Patterson Cos., Inc. (AE) 45,927 1,727 Perrigo Co. 30,384 525 Pharmaceutical Product Development, Inc. 52,304 1,805 Pharmacopeia Drug Discovery, Inc. (AE) 30,900 137 Pharmacyclics, Inc. (AE)(N) 6,200 30 PharmaNet Development Group, Inc. (AE) 12,137 241 Phase Forward, Inc. (AE) 32,000 433 PolyMedica Corp. (N) 11,900 477 PSS World Medical, Inc. (AE) 76,574 1,533 Psychiatric Solutions, Inc. (AE) 52,372 2,039 Quality Systems, Inc. 30,117 1,278 RehabCare Group, Inc. (AE) 4,600 70 ResMed, Inc. (AE)(N) 20,700 1,088 Savient Pharmaceuticals, Inc. (AE) 26,045 389 Sierra Health Services, Inc. (AE) 41,786 1,680 Stericycle, Inc. (AE)(N) 17,000 1,309 STERIS Corp. 30,500 788 Techne Corp. (AE) 30,877 1,792 Universal Health Services, Inc. Class B 21,300 1,234 Ventana Medical Systems, Inc. (AE)(N) 15,200 640 Viropharma, Inc. (AE)(N) 47,000 800 Vital Images, Inc. (AE) 10,318 346 Watson Pharmaceuticals, Inc. (AE)(N) 40,200 1,094 WellCare Health Plans, Inc. (AE)(N) 42,315 3,279 West Pharmaceutical Services, Inc. 7,988 388 Zoll Medical Corp. (AE) 15,095 947 ------------ 79,235 ------------ Materials and Processing - 9.3% Acuity Brands, Inc. 10,424 605 AEP Industries, Inc. (AE) 1,552 72 Affordable Residential Communities, LP (AE)(N) 18,252 200 Airgas, Inc. 42,558 1,771 Albemarle Corp. (N) 14,600 1,139 AM Castle & Co. (N) 29,087 727 Barnes Group, Inc. (N) 23,600 506 Bluegreen Corp. (AE)(N) 4,700 62 Brookfield Homes Corp. (N) 5,300 192
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Buckeye Technologies, Inc. (AE) 64,076 767 Building Materials Holding Corp. (N) 39,700 946 Cambrex Corp. 58,157 1,272 Carpenter Technology Corp. 16,145 1,891 Celanese Corp. Class A 43,800 1,150 Ceradyne, Inc. (AE) 6,700 362 CF Industries Holdings, Inc. 32,500 991 Chesapeake Corp. 8,800 155 Chicago Bridge & Iron Co. NV 49,103 1,459 Comfort Systems USA, Inc. 28,700 352 Commercial Metals Co. 21,700 588 Constar International, Inc. (AE)(N) 29,400 222 Crown Holdings, Inc. (AE) 18,000 397 Cytec Industries, Inc. 31,253 1,820 Eastman Chemical Co. (N) 29,900 1,751 EMCOR Group, Inc. (AE) 25,744 1,478 Energy Conversion Devices, Inc. (AE) 40,461 1,394 Ennis, Inc. (N) 42,989 1,083 FMC Corp. 15,300 1,191 Georgia Gulf Corp. (N) 22,497 468 GrafTech International, Ltd. (AE) 44,912 365 Granite Construction, Inc. 9,349 501 Greif, Inc. Class A 1,907 218 Harsco Corp. 9,800 842 HB Fuller Co. 46,400 1,200 Hercules, Inc. (AE) 81,600 1,600 Huntsman Corp. (AE) 24,600 514 Infrasource Services, Inc. (AE) 18,956 403 Innospec, Inc. 12,692 679 Insituform Technologies, Inc. Class A (AE)(N) 34,500 963 Jacobs Engineering Group, Inc. (AE) 13,000 1,177 Kaydon Corp. 4,100 177 Lamson & Sessions Co. (The) (AE)(N) 30,335 791 Landec Corp. (AE) 12,654 155 Layne Christensen Co. (AE) 13,400 469 Lennox International, Inc. (N) 15,700 476 Louisiana-Pacific Corp. 28,900 662 Lubrizol Corp. 21,100 1,087 Mercer International, Inc. (AE)(N) 35,700 432 Metal Management, Inc. 26,300 1,079 Mueller Industries, Inc. 26,000 847 Myers Industries, Inc. 14,828 255 Neenah Paper, Inc. 9,843 336 Novagold Resources, Inc. (AE) 41,069 676 Novelis, Inc. 35,003 1,290 Olin Corp. 40,700 685 Olympic Steel, Inc. (N) 10,600 282 OM Group, Inc. (AE) 24,400 1,192
Equity II Fund 13 RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Perini Corp. (AE) 12,298 372 Pioneer Cos., Inc. Class W (AE) 8,081 242 PolyOne Corp. (AE) 56,900 417 PW Eagle, Inc. 5,669 187 Quanex Corp. 17,000 666 Quanta Services, Inc. (AE) 67,402 1,386 Resource Capital Corp. (N) 6,700 125 Rock-Tenn Co. Class A 55,555 1,818 Rockwood Holdings, Inc. (AE)(N) 23,900 633 RPM International, Inc. 61,360 1,425 SAIC, Inc. (AE)(N) 46,200 857 Schnitzer Steel Industries, Inc. Class A (N) 19,500 751 Spartech Corp. 40,393 1,132 Standard Register Co. (The) (N) 15,256 193 Superior Essex, Inc. (AE) 14,400 460 Temple-Inland, Inc. 12,200 609 Timken Co. 31,513 902 Tredegar Corp. 8,478 195 URS Corp. (AE) 3,900 168 USEC, Inc. 23,759 322 Valmont Industries, Inc. 7,404 411 Washington Group International, Inc. (AE) 43,761 2,500 Westlake Chemical Corp. (N) 20,511 681 ------------ 60,816 ------------ Miscellaneous - 1.7% Brunswick Corp. 17,700 604 Foster Wheeler, Ltd. (AE) 50,550 2,703 GP Strategies Corp. (AE) 5,222 45 Hillenbrand Industries, Inc. (N) 19,600 1,117 Johnson Controls, Inc. 9,096 841 McDermott International, Inc. (AE) 68,843 3,555 Walter Industries, Inc. 37,536 1,058 Wesco Financial Corp. (N) 2,481 1,200 ------------ 11,123 ------------ Other Energy - 3.4% Alon USA Energy, Inc. (N) 5,200 140 Cameron International Corp. (AE) 13,012 683 Compagnie Generale de Geophysique-Veritas - ADR (AE) 12,258 487 Comstock Resources, Inc. (AE)(N) 23,354 746 Core Laboratories NV (AE) 34,589 2,850 Dresser-Rand Group, Inc. (AE)(N) 17,200 446 Dril-Quip, Inc. (AE) 20,257 754 Enbridge Energy Partners, LP Class A (N) 16,078 851 ENSCO International, Inc. (N) 17,300 880 Foundation Coal Holdings, Inc. (N) 22,500 749 Frontier Oil Corp. 23,100 656 Global Industries, Ltd. (AE) 54,600 735
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Grey Wolf, Inc. (AE) 52,644 359 Hercules Offshore, Inc. (AE)(N) 24,000 635 Horizon Offshore, Inc. (AE) 10,900 183 Hornbeck Offshore Services, Inc. (AE)(N) 3,400 94 Input/Output, Inc. (AE)(N) 56,800 778 Meridian Resource Corp. (AE) 44,402 123 National-Oilwell Varco, Inc. (AE) 17,225 1,044 Oceaneering International, Inc. (AE)(N) 11,000 434 Ormat Technologies, Inc. (N) 10,700 419 Penn Virginia Corp. 5,498 403 Pioneer Drilling Co. (AE)(N) 37,624 477 Talisman Energy, Inc. 43,557 767 TEPPCO Partners, LP (N) 20,137 836 Tetra Technologies, Inc. (AE) 58,044 1,344 Trico Marine Services, Inc. (AE) 13,300 433 Union Drilling, Inc. (AE) 7,500 96 Unit Corp. (AE) 13,525 656 VeraSun Energy Corp. (AE) 39,044 669 Western Refining, Inc. (N) 12,200 334 Whiting Petroleum Corp. (AE) 20,007 912 XTO Energy, Inc. 18,821 950 ------------ 21,923 ------------ Producer Durables - 7.7% Advanced Energy Industries, Inc. (AE) 3,400 59 AGCO Corp. (AE) 18,789 638 AO Smith Corp. 4,900 188 Applied Industrial Technologies, Inc. 8,600 211 Arris Group, Inc. (AE)(N) 59,134 841 ASML Holding NV Class G (AE) 80,970 2,066 Audiovox Corp. Class A (AE) 2,572 40 Axcelis Technologies, Inc. (AE) 59,300 382 Baldor Electric Co. (N) 20,000 706 BE Aerospace, Inc. (AE) 43,628 1,299 Beazer Homes USA, Inc. (N) 6,500 283 C&D Technologies, Inc. (N) 6,300 34 C-COR, Inc. (AE) 37,534 514 Cascade Corp. 3,700 199 Crane Co. (N) 25,076 974 Credence Systems Corp. (AE) 304,125 1,481 Crown Castle International Corp. (AE) 27,300 960 CTS Corp. 11,766 182 Desarrolladora Homex SAB de CV - ADR (AE) 16,750 996 Diebold, Inc. 13,700 635 DR Horton, Inc. (N) 19,020 553 Entegris, Inc. (AE)(N) 85,831 921
14 Equity II Fund RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- ESCO Technologies, Inc. (AE)(N) 48,695 2,326 Flowserve Corp. (AE) 9,900 525 Gardner Denver, Inc. (AE) 15,900 613 Gorman-Rupp Co. (The) 3,100 125 Herman Miller, Inc. (N) 47,500 1,786 Hubbell, Inc. Class B (N) 18,300 882 Intevac, Inc. (AE)(N) 45,400 1,004 Itron, Inc. (AE) 6,687 385 K&F Industries Holdings, Inc. (AE) 12,100 282 Kennametal, Inc. 22,906 1,416 Kimball International, Inc. Class B 12,904 318 L-1 Identity Solutions, Inc. Class 1 (AE)(N) 43,100 622 Lam Research Corp. (AE) 31,575 1,446 Lydall, Inc. (AE) 4,566 61 Mettler Toledo International, Inc. (AE) 42,058 3,482 Milacron, Inc. (AE)(N) 94,258 83 MKS Instruments, Inc. (AE) 17,900 391 Mueller Water Products, Inc. Class A 72,028 978 Nordson Corp. 2,900 150 Orbital Sciences Corp. (AE) 30,401 519 Pall Corp. 29,200 1,015 Paxar Corp. (AE) 10,900 240 Photon Dynamics, Inc. (AE) 10,840 122 Photronics, Inc. (AE)(N) 21,200 353 Polycom, Inc. (AE) 74,659 2,510 Regal-Beloit Corp. 10,824 545 Robbins & Myers, Inc. 27,821 1,210 SBA Communications Corp. Class A (AE)(N) 50,700 1,506 Spectralink Corp. (AE)(N) 11,400 103 Steelcase, Inc. Class A (N) 27,600 541 Technical Olympic USA, Inc. (AE)(N) 50,100 477 Technitrol, Inc. 22,100 487 Tecumseh Products Co. Class A (AE)(N) 34,700 622 Teledyne Technologies, Inc. (AE)(N) 16,800 641 Tennant Co. 17,916 554 Teradyne, Inc. (AE)(N) 18,700 279 Thomas & Betts Corp. (AE) 3,200 153 Toll Brothers, Inc. (AE)(N) 28,497 964 Tollgrade Communications, Inc. (AE) 5,098 51 Ultra Clean Holdings (AE)(N) 51,700 721 Ultratech, Inc. (AE)(N) 37,400 454 Varian Semiconductor Equipment Associates, Inc. (AE) 97,659 4,019 Verigy, Ltd. (AE) 77,720 1,425 ------------ 50,548 ------------ Technology - 16.0% 3Com Corp. (AE) 216,100 843 Acme Packet, Inc. (AE)(N) 38,700 615 Actel Corp. (AE) 17,392 311
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- ActivIdentity Corp. (AE)(N) 2,500 13 Acxiom Corp. 16,677 379 Adaptec, Inc. (AE) 151,021 544 Akamai Technologies, Inc. (AE)(N) 37,500 2,107 Alliance Semiconductor Corp. (AE) 44,600 194 Amdocs, Ltd. (AE) 35,500 1,231 American Reprographics Co. (AE) 38,002 1,190 American Software, Inc. Class A 5,242 37 AMIS Holdings, Inc. (AE) 11,572 120 Amkor Technology, Inc. (AE) 32,400 341 Amphenol Corp. Class A 50,522 3,421 Ansoft Corp. (AE) 16,920 473 Ansys, Inc. (AE) 70,813 3,533 Applera Corp. - Applied Biosystems Group 5,600 195 Applied Micro Circuits Corp. (AE)(N) 349,200 1,201 Ariba, Inc. (AE)(N) 68,000 632 ARM Holdings PLC - ADR 72,100 522 Arrow Electronics, Inc. (AE) 29,069 1,025 ASE Test, Ltd. (AE) 46,595 513 AsiaInfo Holdings, Inc. (AE) 13,672 107 Aspen Technology, Inc. (AE)(N) 42,100 431 Atmel Corp. (AE) 108,203 647 Avanex Corp. (AE)(N) 95,500 203 Avici Systems, Inc. (AE)(N) 15,700 109 Avnet, Inc. (AE) 54,379 1,688 BearingPoint, Inc. (AE)(N) 35,900 288 Bel Fuse, Inc. Class B 2,000 65 Benchmark Electronics, Inc. (AE) 85,328 1,933 Blackbaud, Inc. 26,642 639 Brocade Communications Systems, Inc. (AE)(N) 226,786 1,946 Captaris, Inc. (AE) 44,021 388 Carrier Access Corp. (AE) 11,364 65 Cbeyond, Inc. (AE)(N) 29,800 886 Ciena Corp. (AE) 50,165 1,409 Citrix Systems, Inc. (AE)(N) 22,700 719 Cognizant Technology Solutions Corp. Class A (AE) 20,000 1,706 Coherent, Inc. (AE) 13,771 423 Comverse Technology, Inc. (AE)(N) 22,500 435 Cray, Inc. (AE) 11,722 136 CSG Systems International, Inc. (AE) 19,674 493 Cubic Corp. 17,500 366 Daktronics, Inc. (N) 27,100 937 DealerTrack Holdings, Inc. (AE) 28,000 776 Dendrite International, Inc. (AE) 18,840 206
Equity II Fund 15 RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Digimarc Corp. (AE) 3,844 37 Digital River, Inc. (AE)(N) 19,600 1,003 Ditech Networks, Inc. (AE) 7,200 52 Eagle Test Systems, Inc. (AE)(N) 17,500 253 Echelon Corp. (AE)(N) 4,200 31 EMS Technologies, Inc. (AE) 2,095 43 Emulex Corp. (AE) 25,618 455 Equinix, Inc. (AE)(N) 38,800 3,262 Excel Technology, Inc. (AE) 3,800 105 Extreme Networks (AE) 85,857 356 Flir Systems, Inc. (AE)(N) 12,900 399 Foundry Networks, Inc. (AE)(N) 35,500 514 Gartner, Inc. (AE)(N) 132,700 2,901 Gerber Scientific, Inc. (AE) 6,100 75 Harmonic, Inc. (AE) 30,200 273 II-VI, Inc. (AE)(N) 21,700 652 Ikanos Communications, Inc. (AE)(N) 35,500 288 Ingram Micro, Inc. Class A (AE) 54,700 1,067 Integrated Device Technology, Inc. (AE) 142,400 2,154 Integrated Silicon Solutions, Inc. (AE)(N) 67,070 406 Interwoven, Inc. (AE) 84,919 1,333 JDS Uniphase Corp. (AE)(N) 48,050 854 Keynote Systems, Inc. (AE) 36,100 427 Komag, Inc. (AE) 11,500 392 Lattice Semiconductor Corp. (AE) 65,112 382 Leadis Technology, Inc. (AE) 2,600 11 Logility, Inc. (AE) 2,962 22 Magma Design Automation, Inc. (AE) 8,312 71 Manhattan Associates, Inc. (AE) 18,387 516 McAfee, Inc. (AE) 30,000 878 Mentor Graphics Corp. (AE)(N) 113,129 2,104 Mercury Computer Systems, Inc. (AE)(N) 12,700 164 Merge Technologies, Inc. (AE) 40,720 225 Merix Corp. (AE) 7,395 64 Methode Electronics, Inc. (N) 12,400 136 Micros Systems, Inc. (AE) 37,225 2,096 Microsemi Corp. (AE) 1 -- MicroStrategy, Inc. Class A (AE) 3,915 475 MIPS Technologies, Inc. Class A (AE)(N) 8,600 72 Ness Technologies, Inc. (AE) 10,000 134 Netgear, Inc. (AE)(N) 8,000 206 Novell, Inc. (AE) 67,100 486 Nuance Communications, Inc. (AE)(N) 129,900 1,496 Opnet Technologies, Inc. (AE) 5,828 79 Opsware, Inc. (AE)(N) 85,300 682 Orckit Communications, Ltd. (AE)(N) 28,800 282 Parametric Technology Corp. (AE) 118,368 2,346 Park Electrochemical Corp. (N) 13,500 360 Pegasystems, Inc. 5,502 51 Planar Systems, Inc. (AE)(N) 7,950 83
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- PMC - Sierra, Inc. (AE)(N) 139,800 881 QLogic Corp. (AE) 45,000 823 Quantum Corp. (AE)(N) 186,200 464 RADVision, Ltd. (AE) 7,300 143 RADWARE, Ltd. (AE)(N) 18,800 243 RealNetworks, Inc. (AE)(N) 66,500 710 Riverbed Technology, Inc. (AE)(N) 17,200 526 Rockwell Automation, Inc. 28,432 1,740 Salesforce.com, Inc. (AE)(N) 16,100 706 Sanmina-SCI Corp. (AE) 129,300 453 Seachange International, Inc. (AE) 45,100 451 Seagate Technology (N) 52,162 1,413 Sigma Designs, Inc. (AE)(N) 21,400 518 Sigmatel, Inc. (AE)(N) 52,800 205 Silicon Image, Inc. (AE) 23,500 284 Silicon Storage Technology, Inc. (AE)(N) 135,424 674 Sirf Technology Holdings, Inc. (AE) 21,035 618 Skyworks Solutions, Inc. (AE)(N) 225,300 1,480 Solectron Corp. (AE)(N) 183,300 596 SonicWALL, Inc. (AE) 47,500 400 Standard Microsystems Corp. (AE) 15,100 421 Sybase, Inc. (AE) 23,169 600 Sycamore Networks, Inc. (AE) 98,200 366 SYNNEX Corp. (AE)(N) 19,181 368 Synopsys, Inc. (AE) 42,100 1,120 Syntax-Brillian Corp. (AE) 25,800 204 Tekelec (AE)(N) 77,300 1,190 Tessera Technologies, Inc. (AE) 70,989 2,715 TIBCO Software, Inc. (AE) 140,100 1,300 Transaction Systems Architects, Inc. (AE) 51,690 1,869 Trident Microsystems, Inc. (AE) 9,500 198 Triquint Semiconductor, Inc. (AE)(N) 135,200 635 Trizetto Group, Inc. (The) (AE)(N) 48,500 1,006 Tyler Technologies, Inc. (AE) 32,411 450 Ultimate Software Group, Inc. (AE)(N) 63,900 1,558 Unisys Corp. (AE)(N) 238,460 2,056 Utstarcom, Inc. (AE)(N) 49,000 433 Varian, Inc. (AE) 11,300 605 VeriFone Holdings, Inc. (AE)(N) 67,700 2,706 Verint Systems, Inc. (AE)(N) 13,100 433 Viasat, Inc. (AE) 8,100 267 Vignette Corp. (AE) 24,556 440 Vocus, Inc. (AE)(N) 67,700 1,263 Wavecom Sa - ADR (AE)(N) 21,300 322 Westell Technologies, Inc. Class A (AE) 37,800 86
16 Equity II Fund RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Western Digital Corp. (AE) 53,748 1,053 Zoran Corp. (AE) 45,300 633 ------------ 104,819 ------------ Utilities - 3.5% AGL Resources, Inc. 6,000 236 Allete, Inc. (N) 9,400 452 Alliant Energy Corp. (N) 16,400 596 Atlantic Tele-Network, Inc. 900 27 Atmos Energy Corp. 21,710 678 Black Hills Corp. 13,000 482 Centerpoint Energy, Inc. (N) 47,400 818 Cincinnati Bell, Inc. (AE) 86,693 421 CMS Energy Corp. (N) 44,300 739 CT Communications, Inc. 19,914 487 General Communication, Inc. Class A (AE) 3,468 54 Leap Wireless International, Inc. Class W (AE)(N) 24,700 1,623 MDU Resources Group, Inc. 29,100 752 NeuStar, Inc. Class A (AE) 45,309 1,400 New Jersey Resources Corp. 3,700 172 NII Holdings, Inc. (AE) 21,808 1,609 Northeast Utilities 47,300 1,308 OGE Energy Corp. 23,700 918 Pepco Holdings, Inc. 64,100 1,640 Pinnacle West Capital Corp. (N) 22,000 1,073 PNM Resources, Inc. 13,200 402 Puget Energy, Inc. 4,400 108 RCN Corp. (AE) 13,500 401 Sierra Pacific Resources (AE) 58,100 989 Southern Union Co. 28,400 790 Southwest Gas Corp. 5,000 196 TECO Energy, Inc. (N) 79,500 1,348 UGI Corp. 49,700 1,362 Unisource Energy Corp. (N) 24,186 908 USA Mobility, Inc. 4,993 101 Westar Energy, Inc. 21,934 584 ------------ 22,674 ------------ TOTAL COMMON STOCKS (cost $531,128) 623,701 ------------ WARRANTS & RIGHTS - 0.0% Financial Services - 0.0% Washington Mutual, Inc. (AE) 2050 Warrants 103,100 15 ------------ TOTAL WARRANTS & RIGHTS (cost $17) 15 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 5.0% Russell Investment Company Money Market Fund 31,000,001 31,000 United States Treasury Bills (c)(z)(sec.) 4.967% due 03/15/07 1,400 1,392 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $32,392) 32,392 ------------ OTHER SECURITIES - 29.2% Russell Investment Company Money Market Fund (X) 47,278,925 47,279 State Street Securities Lending Quality Trust (X) 144,150,159 144,150 ------------ TOTAL OTHER SECURITIES (cost $191,429) 191,429 ------------ TOTAL INVESTMENTS - 129.6% (identified cost $754,966) 847,537 OTHER ASSETS AND LIABILITIES, NET - (29.6)% (193,573) ------------ NET ASSETS - 100.0% 653,964 ============
See accompanying notes which are an integral part of the schedules of investments. Equity II Fund 17 RUSSELL INVESTMENT COMPANY EQUITY II FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Russell 2000 Mini Index (CME) expiration date 03/07 (403) 32,417 450 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 450 ===============
See accompanying notes which are an integral part of the schedules of investments. 18 Equity II Fund RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 100.0% Auto and Transportation - 2.6% ArvinMeritor, Inc. 15,000 289 Burlington Northern Santa Fe Corp. (U) 22,800 1,832 CH Robinson Worldwide, Inc. 18,500 981 Continental Airlines, Inc. Class A (AE)(N) 12,300 510 CSX Corp. 282,100 10,379 Expeditors International Washington, Inc. 8,500 363 FedEx Corp. (U) 32,000 3,533 Ford Motor Co. 222,300 1,807 Goodyear Tire & Rubber Co. (The) (AE) 2,000 49 Harley-Davidson, Inc. (N) 38,950 2,659 Heartland Express, Inc. 8,800 149 Norfolk Southern Corp. 117,300 5,824 Overseas Shipholding Group, Inc. 33,601 2,088 Paccar, Inc. (N) 88,450 5,915 Pacer International, Inc. 7,700 240 Southwest Airlines Co. 124,200 1,875 Tidewater, Inc. 10,800 557 TRW Automotive Holdings Corp. (AE) 9,600 251 UAL Corp. (AE) 8,600 372 Union Pacific Corp. (U) 35,380 3,573 US Airways Group, Inc. (AE) 4,900 274 ------------ 43,520 ------------ Consumer Discretionary - 13.7% Abercrombie & Fitch Co. Class A 6,800 541 Accenture, Ltd. Class A 103,200 3,896 Aeropostale, Inc. (AE) 23,900 859 Alberto-Culver Co. Class B 20,500 469 American Eagle Outfitters, Inc. (N) 170,650 5,526 American Greetings Corp. Class A 63,800 1,532 AnnTaylor Stores Corp. (AE) 38,100 1,314 Autonation, Inc. (AE) 184,999 4,153 Barnes & Noble, Inc. 15,300 596 Belo Corp. Class A 1,000 19 Best Buy Co., Inc. (U) 48,200 2,429 Big Lots, Inc. (AE) 59,900 1,553 BJ's Wholesale Club, Inc. (AE) 8,400 256 Brinker International, Inc. 66,000 2,082 CBRL Group, Inc. 1,571 74 CBS Corp. Class B (U) 219,078 6,829 CEC Entertainment, Inc. (AE) 6,800 288 Chipotle Mexican Grill, Inc. Class B (AE) 6,660 369 Circuit City Stores, Inc. 41,389 845 Coach, Inc. (AE) 76,800 3,522 Coldwater Creek, Inc. (AE) 11,000 205 Convergys Corp. (AE) 3,000 78
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Corporate Executive Board Co. 11,700 1,061 Costco Wholesale Corp. 34,300 1,927 Darden Restaurants, Inc. 120,700 4,724 Dillard's, Inc. Class A (N) 104,500 3,588 DIRECTV Group, Inc. (The) (AE)(U) 337,400 8,229 Dolby Laboratories, Inc. Class A (AE) 3,500 117 Dollar Tree Stores, Inc. (AE) 21,200 667 DreamWorks Animation SKG, Inc. Class A (AE) 9,500 268 Dress Barn, Inc. (AE) 29,400 661 eBay, Inc. (AE)(U) 94,600 3,064 EchoStar Communications Corp. Class A (AE) 37,200 1,501 Estee Lauder Cos., Inc. (The) Class A 73,600 3,496 Family Dollar Stores, Inc. 57,500 1,863 Foot Locker, Inc. 61,400 1,378 GameStop Corp. Class A (AE) 9,000 481 Gannett Co., Inc. 45,500 2,645 Google, Inc. Class A (AE)(U) 16,502 8,272 Group 1 Automotive, Inc. 7,000 371 Guess?, Inc. (AE) 6,100 440 Hasbro, Inc. 36,800 1,045 InterActiveCorp (AE) 10,100 388 ITT Educational Services, Inc. (AE) 6,000 466 Jack in the Box, Inc. (AE) 4,700 290 Jarden Corp. (AE) 16,000 587 JC Penney Co., Inc. 65,900 5,354 Jones Apparel Group, Inc. 50,800 1,735 Kimberly-Clark Corp. 28,135 1,953 Kohl's Corp. (AE) 84,500 5,992 Limited Brands, Inc. 34,200 956 Liz Claiborne, Inc. 18,800 835 Lowe's Cos., Inc. 95,100 3,206 Manpower, Inc. 92,401 6,739 Marriott International, Inc. Class A (U) 164,600 7,924 Mattel, Inc. 147,600 3,595 McClatchy Co. Class A 7,400 286 McDonald's Corp. (U) 107,599 4,772 McGraw-Hill Cos., Inc. (The) 107,200 7,191 Men's Wearhouse, Inc. (The) 17,100 734 MPS Group, Inc. (AE) 9,300 139 NetFlix, Inc. (AE) 2,900 66 News Corp. Class A 451,500 10,497 Nike, Inc. Class B 22,700 2,243 Nordstrom, Inc. 46,700 2,602 Office Depot, Inc. (AE) 322,800 12,069 Pacific Sunwear of California, Inc. (AE) 10,900 214
Equity Q Fund 19 RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Phillips-Van Heusen Corp. 6,000 331 Rare Hospitality International, Inc. (AE) 3,600 113 Rent-A-Center, Inc. Class A (AE) 11,600 342 Ross Stores, Inc. 2,400 78 RR Donnelley & Sons Co. 38,700 1,436 Scholastic Corp. (AE) 8,000 283 Sears Holdings Corp. (AE) 400 71 Sonic Corp. (AE) 2,400 53 Staples, Inc. (U) 88,150 2,267 Starbucks Corp. (AE)(U) 70,100 2,449 Target Corp. (U) 136,700 8,388 Tech Data Corp. (AE) 3,700 137 Time Warner, Inc. 903,300 19,755 TJX Cos., Inc. 613,900 18,153 Tween Brands, Inc. (AE) 5,600 191 United Auto Group, Inc. 1,600 38 United Stationers, Inc. (AE) 2,700 138 Walt Disney Co. (The) 310,300 10,913 Warnaco Group, Inc. (The) (AE) 10,900 308 Warner Music Group Corp. 2,500 54 Waste Management, Inc. 118,900 4,516 WESCO International, Inc. (AE) 7,300 443 Wynn Resorts, Ltd. (N) 17,800 1,989 Yum! Brands, Inc. 57,500 3,451 ------------ 239,963 ------------ Consumer Staples - 5.6% Altria Group, Inc. 61,600 5,383 Coca-Cola Co. (The) 112,400 5,382 ConAgra Foods, Inc. 138,500 3,561 Constellation Brands, Inc. Class A (AE) 22,200 549 CVS Corp. 20,300 683 Dean Foods Co. (AE) 10,150 449 Del Monte Foods Co. 19,100 219 General Mills, Inc. (U) 113,500 6,497 Hormel Foods Corp. (N) 12,900 489 Kraft Foods, Inc. Class A 78,000 2,724 Kroger Co. (The) 447,235 11,449 McCormick & Co., Inc. 51,500 2,010 Pepsi Bottling Group, Inc. 19,000 601 PepsiCo, Inc. (U) 319,200 20,825 Procter & Gamble Co. (U) 162,850 10,564 Reynolds American, Inc. (N) 56,800 3,664 Safeway, Inc. 248,500 8,953 Supervalu, Inc. 69,400 2,636 Tyson Foods, Inc. Class A 202,900 3,601 UST, Inc. 69,400 3,986 Walgreen Co. 62,100 2,813 ------------ 97,038 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Financial Services - 23.7% Aflac, Inc. 91,900 4,375 Alliance Data Systems Corp. (AE) 24,900 1,691 Allstate Corp. (The) 116,800 7,027 AMBAC Financial Group, Inc. 40,100 3,533 American Home Mortgage Investment Corp. (o) 10,400 363 American International Group, Inc. (U) 89,200 6,106 AmeriCredit Corp. (AE)(N) 80,500 2,185 Ameriprise Financial, Inc. 81,420 4,801 Annaly Capital Management, Inc. (o) 49,100 677 Arthur J Gallagher & Co. 8,800 252 Automatic Data Processing, Inc (U) 95,200 4,543 Bank of America Corp (U) 702,855 36,956 BB&T Corp. 1,700 72 Bear Stearns Cos., Inc. (The) 20,000 3,297 BlackRock, Inc. Class A 400 74 Brown & Brown, Inc. 17,900 507 CapitalSource, Inc. (o)(N) 49,100 1,364 Cash America International, Inc. 4,600 196 CB Richard Ellis Group, Inc. Class A (AE) 27,900 1,049 Chubb Corp. 13,100 682 Cigna Corp. 4,700 622 Cincinnati Financial Corp. 30,932 1,384 CIT Group, Inc. 75,300 4,440 Citigroup, Inc. (U) 466,202 25,702 Colonial Properties Trust (o) 7,500 369 Comerica, Inc. 49,400 2,929 Commerce Group, Inc. 1,400 42 Corus Bankshares, Inc. 31,800 677 Countrywide Financial Corp. 385,050 16,742 Cullen/Frost Bankers, Inc. 8,800 471 Duke Realty Corp. (o) 14,300 631 Dun & Bradstreet Corp. (AE) 6,900 586 Equity Lifestyle Properties, Inc. (o) 1,200 66 Equity Office Properties Trust (o) 71,900 3,994 Fannie Mae 33,600 1,899 FelCor Lodging Trust, Inc. (o) 10,000 221 First American Corp. 18,700 793 First Marblehead Corp. (The) (N) 85,650 4,659 Fiserv, Inc. (AE) 125,100 6,577 Genworth Financial, Inc. Class A 65,500 2,286 Global Payments, Inc. 38,300 1,446 Goldman Sachs Group, Inc. (U) 126,700 26,881 HCC Insurance Holdings, Inc. 47,000 1,468
20 Equity Q Fund RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Health Care Property Investors, Inc. (o) 9,500 392 Hospitality Properties Trust (o)(N) 22,400 1,093 Host Hotels & Resorts, Inc. (o) 146,300 3,873 HRPT Properties Trust (o) 76,400 995 Hudson City Bancorp, Inc. 53,300 734 Huntington Bancshares, Inc. 41,000 954 IndyMac Bancorp, Inc. (N) 15,400 599 Investment Technology Group, Inc. (AE) 15,300 667 iStar Financial, Inc. (o) 3,000 150 Jones Lang LaSalle, Inc. 11,000 1,149 JPMorgan Chase & Co. (U) 631,350 32,155 KeyCorp 98,600 3,764 Kimco Realty Corp. (o) 23,300 1,156 Knight Capital Group, Inc. Class A (AE) 5,000 90 Lehman Brothers Holdings, Inc. (U) 267,800 22,024 Lincoln National Corp. (U) 42,000 2,820 Loews Corp. 107,700 4,681 MBIA, Inc. 53,900 3,872 Mellon Financial Corp. (U) 14,000 598 Merrill Lynch & Co., Inc. 199,500 18,665 Metlife, Inc. (U) 54,100 3,361 Moody's Corp. (U) 47,400 3,392 Morgan Stanley (U) 312,320 25,857 National City Corp. 293,300 11,101 National Retail Properties, Inc. (o) 8,400 200 Nationwide Financial Services, Inc. 17,100 935 Nelnet, Inc. Class A (AE) 7,000 194 New Century Financial Corp. (o) 12,400 375 New Plan Excel Realty Trust (o) 14,900 434 Newcastle Investment Corp. (o) 2,200 71 Northern Trust Corp. 5,300 322 Odyssey Re Holdings Corp. 8,000 316 Old Republic International Corp. 34,525 770 Pennsylvania Real Estate Investment Trust (o) 5,500 235 PMI Group, Inc. (The) 38,800 1,855 PNC Financial Services Group, Inc. (U) 46,300 3,416 Principal Financial Group, Inc. 39,500 2,434 Progressive Corp. (The) (U) 92,500 2,145 Protective Life Corp. 10,400 509 Prudential Financial, Inc. (U) 22,200 1,979 Public Storage, Inc. (o) 3,900 424 Radian Group, Inc. 41,099 2,475 Raymond James Financial, Inc. 10,300 329 Rayonier, Inc. (o)(N) 12,900 557 Redwood Trust, Inc. (o) 4,300 273 Regions Financial Corp. (U) 206,890 7,502 RLI Corp. 2,500 138 Ryder System, Inc. 28,300 1,543 Safeco Corp. 69,900 4,474
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- SL Green Realty Corp. (o) 11,280 1,653 Spirit Finance Corp. (o) 15,100 189 St. Paul Travelers Cos., Inc. (The) 52,600 2,675 Stancorp Financial Group, Inc. 10,000 478 State Street Corp. 25,000 1,776 SunTrust Banks, Inc. 29,600 2,460 Synovus Financial Corp. 21,000 671 T Rowe Price Group, Inc. 8,100 389 TCF Financial Corp. (N) 16,000 406 Thornburg Mortgage, Inc. (o) 18,600 500 Unitrin, Inc. 2,700 138 US Bancorp 232,200 8,266 Ventas, Inc. (o) 17,600 814 Wachovia Corp. 156,200 8,825 Washington Mutual, Inc. (N)(U) 59,900 2,671 Weingarten Realty Investors (o) 2,800 139 Wells Fargo & Co. (U) 448,200 16,099 Whitney Holding Corp. 4,700 149 Wilmington Trust Corp. 6,100 256 WR Berkley Corp. 90,150 2,983 Zenith National Insurance Corp. 9,700 443 ------------ 414,662 ------------ Health Care - 13.8% Abbott Laboratories (U) 94,900 5,030 Aetna, Inc. (U) 187,200 7,892 AMERIGROUP Corp. (AE) 6,400 232 AmerisourceBergen Corp. Class A 353,800 18,532 Amgen, Inc. (AE)(U) 356,900 25,115 Beckman Coulter, Inc. 12,800 826 Becton Dickinson & Co. (U) 31,400 2,416 Biogen Idec, Inc. (AE) 66,200 3,200 Bristol-Myers Squibb Co. (U) 32,500 936 Brookdale Senior Living, Inc. 3,800 182 Cardinal Health, Inc. (U) 127,500 9,106 Caremark Rx, Inc. 98,700 6,046 Celgene Corp. (AE) 79,650 4,276 Cephalon, Inc. (AE) 18,300 1,325 CR Bard, Inc. 11,880 980 Cytyc Corp. (AE) 28,000 810 Dade Behring Holdings, Inc. 20,800 875 Dentsply International, Inc. 28,000 864 Emdeon Corp. (AE) 43,700 623 Express Scripts, Inc. Class A (AE) 16,600 1,154 Forest Laboratories, Inc. (AE) 101,400 5,690 Genentech, Inc. (AE) 3,000 262 Gilead Sciences, Inc. (AE) 8,800 566
Equity Q Fund 21 RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Health Management Associates, Inc. Class A 26,000 506 Health Net, Inc. (AE) 50,100 2,440 Healthspring, Inc. (AE) 9,700 191 Humana, Inc. (AE) 63,100 3,502 Idexx Laboratories, Inc. (AE) 5,700 489 IMS Health, Inc. 36,500 1,053 Johnson & Johnson (U) 596,900 39,873 King Pharmaceuticals, Inc. (AE) 47,600 850 Laboratory Corp. of America Holdings (AE)(N) 25,700 1,887 LifePoint Hospitals, Inc. (AE) 13,800 469 Manor Care, Inc. 12,800 682 McKesson Corp. 218,400 12,176 Medco Health Solutions, Inc. (AE) 37,900 2,244 Medicines Co. (The) (AE) 11,400 349 Medtronic, Inc. 21,100 1,128 Merck & Co., Inc. (U) 391,150 17,504 Millennium Pharmaceuticals, Inc. (AE)(N) 141,200 1,567 Mylan Laboratories, Inc. 77,000 1,705 Nektar Therapeutics (AE) 15,400 196 Pfizer, Inc. 1,386,700 36,387 Quest Diagnostics, Inc. 52,800 2,771 Schering-Plough Corp. (N)(U) 164,700 4,118 Thermo Fisher Scientific, Inc. (AE) 50,300 2,407 UnitedHealth Group, Inc. (U) 17,400 909 Universal Health Services, Inc. Class B 9,900 574 Vertex Pharmaceuticals, Inc. (AE) 6,000 212 WellCare Health Plans, Inc. (AE) 8,500 659 WellPoint, Inc. (AE)(U) 80,000 6,270 Wyeth (U) 6,500 321 Zimmer Holdings, Inc. (AE)(U) 21,480 1,809 ------------ 242,186 ------------ Integrated Oils - 6.2% Chevron Corp. 163,100 11,887 ConocoPhillips (U) 200,374 13,307 Exxon Mobil Corp. (U) 772,232 57,222 Hess Corp. 77,300 4,173 Marathon Oil Corp. 197,320 17,826 Occidental Petroleum Corp. (U) 82,400 3,820 ------------ 108,235 ------------ Materials and Processing - 4.8% Acuity Brands, Inc. 6,900 400 Albemarle Corp. 5,300 413 Alcoa, Inc. 170,000 5,491 Archer-Daniels-Midland Co. (U) 85,500 2,736 Ashland, Inc. 55,500 3,860 Bemis Co. 21,600 732 Celanese Corp. Class A 32,000 840
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Chaparral Steel Co. 15,200 780 Corn Products International, Inc. 10,900 373 Crown Holdings, Inc. (AE) 2,600 57 Cytec Industries, Inc. 4,300 250 Dow Chemical Co. (The) (U) 123,300 5,122 Eagle Materials, Inc. (N) 43,100 2,129 Eastman Chemical Co. 18,800 1,101 EMCOR Group, Inc. (AE) 5,000 287 Energizer Holdings, Inc. (AE) 40,800 3,477 Fluor Corp. 17,300 1,429 FMC Corp. 6,700 522 Freeport-McMoRan Copper & Gold, Inc. Class B (N) 253,700 14,590 Granite Construction, Inc. 3,900 209 Greif, Inc. Class A 1,600 183 HB Fuller Co. 1,900 49 Hercules, Inc. (AE) 29,200 573 Huntsman Corp. (AE) 13,800 289 Jacobs Engineering Group, Inc. (AE) 16,300 1,476 Louisiana-Pacific Corp. 17,700 406 Masco Corp. (N) 52,400 1,676 Mueller Industries, Inc. 10,000 326 Newmont Mining Corp. 2,500 113 Nucor Corp. 147,202 9,500 Olin Corp. 17,100 288 Packaging Corp. of America 20,200 461 Pactiv Corp. (AE) 62,200 2,018 PPG Industries, Inc. 30,400 2,015 Quanex Corp. 7,800 306 Reliance Steel & Aluminum Co. 30,800 1,283 Rohm & Haas Co. 68,700 3,577 RPM International, Inc. 13,000 302 Sherwin-Williams Co. (The) 61,400 4,243 Southern Copper Corp. 30,500 1,906 Steel Dynamics, Inc. (N) 118,000 4,627 Timken Co. 17,300 495 United States Steel Corp. 16,800 1,403 URS Corp. (AE) 11,900 511 USG Corp. (AE) 37,300 1,999 Westlake Chemical Corp. 8,300 275 ------------ 85,098 ------------ Miscellaneous - 2.0% Brunswick Corp. 12,300 419 Eaton Corp. 18,300 1,434 General Electric Co. (U) 540,240 19,476 Hillenbrand Industries, Inc. 4,500 256 Honeywell International, Inc. 34,900 1,594
22 Equity Q Fund RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- ITT Corp. 32,400 1,933 Johnson Controls, Inc. 36,200 3,347 SPX Corp. 31,600 2,218 Textron, Inc. 17,600 1,640 Trinity Industries, Inc. 20,100 769 Tyco International, Ltd. 79,600 2,538 ------------ 35,624 ------------ Other Energy - 3.1% Alon USA Energy, Inc. 12,100 325 Anadarko Petroleum Corp. (U) 57,100 2,498 Apache Corp. (U) 15,600 1,138 Cameron International Corp. (AE) 21,200 1,113 Chesapeake Energy Corp. 60,300 1,786 Cimarex Energy Co. 20,300 761 Complete Production Services, Inc. (AE) 7,700 153 Devon Energy Corp. (U) 116,300 8,152 Dynegy, Inc. Class A (AE) 5,054 36 Frontier Oil Corp. 16,800 477 Global Industries, Ltd. (AE) 39,600 533 GlobalSantaFe Corp. 6,400 371 Grey Wolf, Inc. (AE) 21,500 147 Helix Energy Solutions Group, Inc. (AE) 21,200 682 Helmerich & Payne, Inc. 49,200 1,320 Holly Corp. (N) 47,500 2,503 Newfield Exploration Co. (AE) 56,900 2,436 NRG Energy, Inc. (AE) 29,600 1,774 Oceaneering International, Inc. (AE) 30,100 1,188 Oil States International, Inc. (AE) 19,900 574 Patterson-UTI Energy, Inc. (N) 26,500 640 Rowan Cos., Inc. 19,500 641 SEACOR Holdings, Inc. (AE) 17,110 1,732 St. Mary Land & Exploration Co. 14,600 525 Stone Energy Corp. (AE) 4,300 146 Sunoco, Inc. 37,700 2,380 Superior Energy Services, Inc. (AE) 17,400 528 Tesoro Corp. 11,400 939 Tetra Technologies, Inc. (AE) 29,400 681 Todco Class A (AE) 6,000 208 Valero Energy Corp. 100,200 5,439 W&T Offshore, Inc. 8,900 273 Western Refining, Inc. 20,100 550 Whiting Petroleum Corp. (AE) 5,000 228 XTO Energy, Inc. 215,600 10,881 ------------ 53,758 ------------ Producer Durables - 6.6% AGCO Corp. (AE) 63,500 2,157 Andrew Corp. (AE) 21,200 225 Applied Industrial Technologies, Inc. (U) 8,800 216
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Applied Materials, Inc. 259,300 4,597 Boeing Co. 16,600 1,487 Caterpillar, Inc. 120,200 7,701 Crane Co. 6,700 260 Cummins, Inc. 7,600 1,023 Danaher Corp. (U) 52,700 3,903 Deere & Co. 4,680 469 Emerson Electric Co. 36,600 1,646 Esterline Technologies Corp. (AE) 1,100 44 Gardner Denver, Inc. (AE) 16,600 640 Genlyte Group, Inc. (AE) 5,400 409 Goodrich Corp. 17,700 868 KB Home 12,400 672 Lam Research Corp. (AE) 125,200 5,736 Lennar Corp. Class A 28,100 1,528 Lexmark International, Inc. Class A (AE)(N) 70,000 4,412 Lockheed Martin Corp. (U) 264,900 25,746 Manitowoc Co., Inc. (The) 27,200 1,411 MDC Holdings, Inc. 7,400 431 Mettler Toledo International, Inc. (AE) 8,900 737 MKS Instruments, Inc. (AE) 8,200 179 Molex, Inc. 34,100 1,002 Nordson Corp. 3,900 202 Northrop Grumman Corp. 286,851 20,349 Novellus Systems, Inc. (AE)(N) 45,200 1,394 NVR, Inc. (AE) 1,500 1,039 Parker Hannifin Corp. 53,700 4,444 Plantronics, Inc. 4,600 91 Polycom, Inc. (AE) 78,100 2,626 Pulte Homes, Inc. 78,800 2,706 Standard-Pacific Corp. 34,700 952 Steelcase, Inc. Class A 16,200 317 Technitrol, Inc. 6,100 134 Teradyne, Inc. (AE) 44,200 659 Terex Corp. (AE) 7,050 401 Toll Brothers, Inc. (AE) 25,900 876 United Technologies Corp. 134,900 9,176 Waters Corp. (AE) 32,550 1,845 Xerox Corp. (AE) 92,400 1,589 ------------ 116,299 ------------ Technology - 11.6% 3Com Corp. (AE) 54,000 211 Agere Systems, Inc. Class A (AE) 3,500 71 Altera Corp. (AE) 44,700 896
Equity Q Fund 23 RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Amphenol Corp. Class A 6,700 454 Anixter International, Inc. (AE) 11,800 652 Applera Corp. - Applied Biosystems Group 71,000 2,468 Applied Micro Circuits Corp. (AE) 93,400 321 Arrow Electronics, Inc. (AE) 25,400 895 Atmel Corp. (AE) 792,200 4,737 Avaya, Inc. (AE) 54,000 693 Avnet, Inc. (AE) 19,900 618 AVX Corp. (N) 45,100 652 BEA Systems, Inc. (AE) 181,600 2,239 Benchmark Electronics, Inc. (AE) 12,600 285 Blackbaud, Inc. 7,100 170 BMC Software, Inc. (AE) 59,000 2,029 Brocade Communications Systems, Inc. (AE) 128,500 1,103 CACI International, Inc. Class A (AE) 2,800 132 Cadence Design Systems, Inc. (AE) 42,800 809 Ciena Corp. (AE) 45,614 1,281 Cisco Systems, Inc. (AE) 1,217,600 32,376 Coherent, Inc. (AE) 1,200 37 Computer Sciences Corp. (AE) 122,301 6,416 CSG Systems International, Inc. (AE) 7,700 193 Cypress Semiconductor Corp. (AE) 17,300 319 DRS Technologies, Inc. 7,000 388 F5 Networks, Inc. (AE) 15,200 1,086 Fairchild Semiconductor International, Inc. Class A (AE) 29,700 529 Harris Corp. 25,200 1,281 Hewlett-Packard Co. (U) 667,200 28,876 Hyperion Solutions Corp. (AE) 4,500 190 Ingram Micro, Inc. Class A (AE) 56,600 1,104 Integrated Device Technology, Inc. (AE) 100,100 1,515 Intel Corp. 79,400 1,664 International Business Machines Corp. (U) 205,540 20,379 International Rectifier Corp. (AE) 10,500 438 Intersil Corp. Class A 21,100 497 Intuit, Inc. (AE) 148,299 4,664 Jabil Circuit, Inc. 50,800 1,219 LSI Logic Corp. (AE)(N) 81,900 770 McAfee, Inc. (AE) 33,700 986 MEMC Electronic Materials, Inc. (AE) 22,700 1,189 Mentor Graphics Corp. (AE) 62,600 1,164 Micron Technology, Inc. (AE) 371,400 4,810 Microsoft Corp. 701,000 21,633 Motorola, Inc. 69,400 1,378 National Semiconductor Corp. 39,200 907 NCR Corp. (AE) 9,800 464 Network Appliance, Inc. (AE) 59,800 2,248 Nvidia Corp. (AE) 32,400 993 Oracle Corp. (AE) 568,000 9,747 QLogic Corp. (AE) 40,200 736
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Qualcomm, Inc. 88,600 3,337 Raytheon Co. (U) 159,500 8,278 RealNetworks, Inc. (AE) 38,800 414 Sanmina-SCI Corp. (AE) 104,200 365 Seagate Technology, Inc. (AE) 57,274 -- Solectron Corp. (AE) 83,400 271 Spansion, Inc. Class A (AE) 16,800 216 Sun Microsystems, Inc. (AE) 358,200 2,378 Sybase, Inc. (AE) 10,200 264 Symantec Corp. (AE) 110,300 1,953 Synopsys, Inc. (AE) 133,901 3,562 Tellabs, Inc. (AE) 76,800 773 Texas Instruments, Inc. 111,000 3,462 TIBCO Software, Inc. (AE) 6,100 57 Unisys Corp. (AE) 57,300 494 Utstarcom, Inc. (AE) 88,500 781 VeriSign, Inc. (AE) 30,700 734 Vishay Intertechnology, Inc. (AE) 41,100 540 Websense, Inc. (AE) 2,800 61 Western Digital Corp. (AE) 94,300 1,848 Xilinx, Inc. 131,100 3,186 ------------ 203,886 ------------ Utilities - 6.3% AGL Resources, Inc. (N) 5,700 224 Alltel Corp. 30,000 1,839 AT&T, Inc. (U) 755,970 28,447 Atmos Energy Corp. 8,300 259 CenturyTel, Inc. 81,000 3,632 Comcast Corp. Class A (AE) 280,000 12,410 Constellation Energy Group, Inc. 25,200 1,828 Duke Energy Corp. 232,000 4,568 Edison International 113,800 5,119 Embarq Corp. 28,200 1,565 Energy East Corp. (N) 19,900 478 Entergy Corp. 15,700 1,458 FirstEnergy Corp. 48,500 2,878 Golden Telecom, Inc. 1,200 62 KeySpan Corp. 43,100 1,759 New Jersey Resources Corp. 2,300 107 Oneok, Inc. 12,100 519 Pepco Holdings, Inc. 8,100 207 PG&E Corp. (N) 204,699 9,555 PPL Corp. 35,500 1,264 Qwest Communications International, Inc. (AE)(N) 460,400 3,752 Sprint Nextel Corp. 74,100 1,321 TXU Corp. 329,699 17,830
24 Equity Q Fund RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Verizon Communications, Inc. 200,500 7,723 Windstream Corp. (AE) 103,900 1,547 ------------ 110,351 ------------ TOTAL COMMON STOCKS (cost $1,445,912) 1,750,620 ------------ SHORT-TERM INVESTMENTS - 3.9% Russell Investment Company Money Market Fund 64,560,900 64,561 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/2007 3,000 2,983 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $67,544) 67,544 ------------ OTHER SECURITIES - 2.5% Russell Investment Company Money Market Fund (X) 10,676,114 10,676 State Street Securities Lending Quality Trust (X) 32,550,729 32,551 ------------ OTHER SECURITIES (cost $43,227) 43,227 ------------ TOTAL INVESTMENTS - 106.4% (identified cost $1,556,683) 1,861,391 ------------ SECURITIES SOLD SHORT - (4.3%) Auto and Transportation - (0.2%) Airtran Holdings, Inc. (AE) (24,100) (267) AMR Corp. (AE) (37,700) (1,397) Florida East Coast Industries, Inc. (10,300) (624) Thor Industries, Inc. (12,600) (532) Visteon Corp. (AE) (29,000) (232) ------------ (3,052) ------------ Consumer Discretionary - (1.0%) Apollo Group, Inc. Class A (AE) (21,900) (950) Big Lots, Inc. (AE) (10,200) (264) Blockbuster, Inc. Class A (AE) (42,400) (275) Chico's FAS, Inc. (AE) (24,200) (505) ChoicePoint, Inc. (AE) (1,300) (50) Discovery Holding Co. Class A (AE) (104,700) (1,735) Fastenal Co. (34,700) (1,294) Hewitt Associates, Inc. Class A (AE) (36,900) (994) Interpublic Group of Cos., Inc. (AE) (114,500) (1,507) Las Vegas Sands Corp. (AE) (22,800) (2,373) Regal Entertainment Group Class A (53,600) (1,206) Saks, Inc. (37,100) (696) Service Corp. International (70,500) (751) Take-Two Interactive Software, Inc. (AE) (12,500) (217)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Tractor Supply Co. (AE) (3,100) (156) Triarc Cos., Inc. Class A (23,200) (454) Under Armour, Inc. Class A New (AE) (2,800) (142) Urban Outfitters, Inc. (AE) (9,200) (225) World Fuel Services Corp. (6,500) (298) Wynn Resorts, Ltd. (N) (8,600) (961) Yahoo!, Inc. (AE) (77,500) (2,194) ------------ (17,247) ------------ Consumer Staples - (0.1%) Hansen Natural Corp. (AE) (8,400) (320) Rite Aid Corp. (AE) (150,100) (925) Tyson Foods, Inc. Class A (73,500) (1,305) ------------ (2,550) ------------ Financial Services - (1.0%) American Financial Realty Trust (o) (23,000) (257) BlackRock, Inc. Class A (9,500) (1,594) Capitol Federal Financial (5,000) (195) Chicago Mercantile Exchange Holdings, Inc. Class A (3,300) (1,859) Eaton Vance Corp. (59,800) (2,051) First Data Corp. (41,100) (1,022) Friedman Billings Ramsey Group, Inc. Class A (o) (65,500) (515) General Growth Properties, Inc. (o) (21,300) (1,310) Greenhill & Co., Inc. (10,000) (749) H&R Block, Inc. (63,300) (1,557) IntercontinentalExchange, Inc. (AE) (8,000) (1,044) Investors Financial Services Corp. (14,100) (660) LandAmerica Financial Group, Inc. Class A (17,800) (1,123) MBIA, Inc. (3,300) (237) Piper Jaffray Cos., Inc. (AE) (6,700) (462) SEI Investments Co. (21,400) (1,334) UnumProvident Corp. (1,000) (22) ------------ (15,991) ------------ Health Care - (0.4%) Abraxis BioScience, Inc. (AE) (16,800) (439) Adams Respiratory Therapeutics, Inc. (AE) (10,700) (480) Affymetrix, Inc. (AE) (12,500) (312) Allergan, Inc. (15,100) (1,762) Bausch & Lomb, Inc. (10,700) (596) Celgene Corp. (AE) (19,100) (1,739) Genentech, Inc. (AE) (7,600) (664)
Equity Q Fund 25 RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Healthsouth Corp. (AE) (4,000) (94) Intuitive Surgical, Inc. (AE) (4,200) (413) Inverness Medical Innovations, Inc. (AE) (4,000) (165) Techne Corp. (AE) (3,600) (209) United Therapeutics Corp. (AE) (5,400) (289) ------------ (7,162) ------------ Integrated Oils - (0.0%) Delta Petroleum Corp. (AE) (13,500) (296) ------------ Materials and Processing - (0.4%) Ashland, Inc. (27,100) (1,885) Energy Conversion Devices, Inc. (AE) (8,100) (279) Georgia Gulf Corp. (15,800) (329) Hexcel Corp. (AE) (17,900) (344) Lone Star Technologies, Inc. (AE) (2,400) (116) Mosaic Co. (The) (AE) (42,200) (841) Owens-Illinois, Inc. (AE) (21,000) (467) Quanta Services, Inc. (AE) (22,000) (453) Shaw Group, Inc. (The) (AE) (23,000) (776) Terra Industries, Inc. (AE) (13,800) (196) Titanium Metals Corp. (AE) (14,000) (432) UAP Holding Corp. (16,200) (406) Weyerhaeuser Co. (8,900) (668) Worthington Industries, Inc. (23,600) (453) ------------ (7,645) ------------ Miscellaneous - (0.0%) Walter Industries, Inc. (16,400) (462) ------------ Other Energy - (0.5%) Cabot Oil & Gas Corp. (5,700) (370) Consol Energy, Inc. (26,300) (905) Crosstex Energy, Inc. (22,800) (747) El Paso Corp. (82,200) (1,276) Equitable Resources, Inc. (41,800) (1,808) EXCO Resources, Inc. (AE) (5,700) (96) Massey Energy Co. (34,500) (817) Pogo Producing Co. (16,900) (837) Reliant Energy, Inc. (AE) (52,000) (774) Southwestern Energy Co. (AE) (18,300) (704) ------------ (8,334) ------------ Producer Durables - (0.1%) ACCO Brands Corp. (AE) (11,700) (282) Bucyrus International, Inc. Class A (4,900) (228) Pitney Bowes, Inc. (37,500) (1,795) ------------ (2,305) ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Technology - (0.4%) Akamai Technologies, Inc. (AE) (19,800) (1,113) Apple, Inc. (AE) (9,300) (797) Autodesk, Inc. (AE) (29,900) (1,307) CA, Inc. (6,400) (157) Maxim Integrated Products, Inc. (37,300) (1,149) NAVTEQ Corp. (AE) (18,600) (660) SRA International, Inc. Class A (AE) (4,000) (101) Transaction Systems Architects, Inc. (AE) (5,700) (206) ------------ (5,490) ------------ Utilities - (0.2%) Aquila, Inc. (AE) (89,300) (405) CenturyTel, Inc. (19,100) (856) Level 3 Communications, Inc. (AE) (182,000) (1,130) Southern Union Co. (15,500) (431) Telephone & Data Systems, Inc. (15,500) (867) ------------ (3,689) ------------ TOTAL SECURITIES SOLD SHORT (proceeds $68,480) (74,223) ------------ OTHER ASSETS AND LIABILITIES, NET - (2.1%) (37,346) ------------ NET ASSETS - 100.0% 1,749,822 ============
See accompanying notes which are an integral part of the schedule of investments. 26 Equity Q Fund RUSSELL INVESTMENT COMPANY EQUITY Q FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Russell 1000 Index expiration date 03/07 (20) 7,872 94 Russell 1000 Mini Index (CME) expiration date 03/07 (8) 630 8 S&P 500 E-Mini Index (CME) expiration date 03/07 (59) 4,257 30 S&P 500 Index (CME) expiration date 03/07 (85) 30,664 346 S&P Midcap 400 E-Mini Index (CME) expiration date 03/07 (279) 23,350 394 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 872 ===============
See accompanying notes which are an integral part of the schedule of investments. Equity Q Fund 27 RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 90.8% Australia - 3.7% AGL Energy, Ltd. (AE)(N) 10,400 140 Alinta, Ltd. 3,492 38 Amcor, Ltd. 747,775 4,239 AMP, Ltd. 32,996 268 Ansell, Ltd. 8,638 75 Aristocrat Leisure, Ltd. (N) 78,359 980 Australia & New Zealand Banking Group, Ltd. 45,479 1,028 Australian Wealth Management, Ltd. (N) 13,853 30 AXA Asia Pacific Holdings, Ltd. 43,631 245 BHP Billiton, Ltd. 71,084 1,437 BlueScope Steel, Ltd. 38,093 255 Brambles, Ltd. (AE) 94,734 1,021 Caltex Australia, Ltd. (N) 6,876 116 Centro Properties Group 20,800 146 Coca-Cola Amatil, Ltd. 122,856 747 Coles Group, Ltd. 337,829 3,733 Commonwealth Bank of Australia 26,092 1,014 CSL, Ltd. 74,934 4,040 CSR, Ltd. (N) 27,170 76 David Jones, Ltd. (N) 70,000 246 DB RREEF Trust 31,204 43 Downer EDI, Ltd. 12,892 66 Foster's Group, Ltd. 1,095,336 5,758 Futuris Corp., Ltd. (N) 27,690 45 Goodman Fielder, Ltd. 44,429 82 GPT Group 41,700 177 Harvey Norman Holdings, Ltd. (N) 27,395 87 Insurance Australia Group, Ltd. 159,189 800 Investa Property Group 9,267 18 Leighton Holdings, Ltd. (N) 6,687 114 Lend Lease Corp., Ltd. 7,508 110 Macquarie Airports Management, Ltd. 388,400 1,071 Macquarie Bank, Ltd. 90,836 5,713 Macquarie Goodman Group (N) 33,363 190 Macquarie Infrastructure Group 404,273 1,149 Mirvac Group 7,900 35 National Australia Bank, Ltd. 583,544 18,316 Newcrest Mining, Ltd. 5,269 85 OneSteel, Ltd. (N) 65,763 242 Pacific Brands, Ltd. 114,100 245 PaperlinX, Ltd. (N) 35,465 98 Qantas Airways, Ltd. 67,039 281 QBE Insurance Group, Ltd. (N) 137,075 3,279 Rinker Group, Ltd. 12,997 188 Rio Tinto, Ltd. (N) 1,243 74 Sims Group, Ltd. (N) 10,326 173 Smorgon Steel Group, Ltd. 47,162 67 Sons of Gwalia, Ltd. (AE)(N)(B) 22,400 -- Stockland (N) 22,563 149
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Suncorp-Metway, Ltd. (N) 29,936 502 Symbion Health, Ltd. 15,050 48 TABCORP Holdings, Ltd. (N) 125,509 1,702 Telstra Corp., Ltd. (N) 1,511,277 4,976 Telstra Corp., Ltd. (AE) 163,219 355 Telstra Corp., Ltd. (AE)(N) 4,923 11 Toll Holdings, Ltd. 65,271 1,062 Wesfarmers, Ltd. 79,020 2,341 Westfield Group 23,807 412 Westpac Banking Corp. 41,577 809 Woodside Petroleum, Ltd. 446 13 Woolworths, Ltd. 86,080 1,588 Zinifex, Ltd. 145,194 1,849 ------------ 74,197 ------------ Austria - 1.0% Erste Bank der Oesterreichischen Sparkassen AG (N) 187,639 14,598 Immofinanz Immobilien Anlagen AG (AE) 51,000 774 OMV AG 20,000 1,071 Raiffeisen International Bank Holding AG 11,300 1,725 Voestalpine AG 37,100 2,147 ------------ 20,315 ------------ Belgium - 0.9% Belgacom SA (N) 36,346 1,646 Delhaize Group 7,675 638 Dexia 6,975 207 Fortis 278,700 11,706 KBC Groep NV (N) 30,995 3,908 UCB SA 12,943 858 ------------ 18,963 ------------ Bermuda - 0.8% CNPC Hong Kong, Ltd. 310,000 155 Cofco International, Ltd. 78,000 82 Esprit Holdings, Ltd. 631,500 6,402 Great Eagle Holdings, Ltd. 50,000 164 Jardine Matheson Holdings, Ltd. 104,100 2,446 Li & Fung, Ltd. 1,120,200 3,494 Orient Overseas International, Ltd. 25,900 173 People's Food Holdings, Ltd. 42,000 34 Shangri-La Asia, Ltd. 800,000 2,147 Vostok Nafta Investment, Ltd. (AE) 12,450 810 ------------ 15,907 ------------
28 International Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Brazil - 0.5% Cia Vale do Rio Doce - ADR 12,500 424 Gafisa SA (AE) 80,838 1,180 Gerdau SA - ADR 56,100 948 Petroleo Brasileiro SA - ADR 7,600 747 Tele Norte Leste Participacoes SA - ADR (N) 73,340 989 Unibanco - Uniao de Bancos Brasileiros SA - ADR 54,028 5,124 ------------ 9,412 ------------ Canada - 1.4% Bombardier, Inc. (AE) 109,289 413 Cameco Corp. 25,400 969 Canadian Imperial Bank of Commerce 28,300 2,426 Canadian National Railway Co. 85,798 3,920 EnCana Corp. 32,300 1,549 Gerdau Ameristeel Corp. 100,000 1,011 Nexen, Inc. 23,942 1,446 Potash Corp. of Saskatchewan 11,500 1,794 Research In Motion, Ltd. (AE)(N) 32,700 4,179 Rogers Communications, Inc. Class B 152,800 4,726 Shoppers Drug Mart Corp. 44,714 1,911 SNC-Lavalin Group, Inc. 57,700 1,696 Teck Cominco, Ltd. Class B (N) 16,400 1,211 ------------ 27,251 ------------ Cayman Islands - 0.3% Chaoda Modern Agriculture 30,000 21 Ctrip.com International, Ltd. - ADR (N) 24,000 1,707 Focus Media Holding, Ltd. - ADR (AE) 18,100 1,496 Foxconn International Holdings, Ltd. (AE)(N) 244,000 730 Hutchison Telecommunications International, Ltd. (AE)(N) 187,000 450 Kingboard Chemical Holdings, Ltd. 14,500 60 Melco PBL Entertainment Macau, Ltd. - ADR (AE)(N) 100,221 1,938 ------------ 6,402 ------------ China - 0.4% China Construction Bank Class H (N) 1,060,000 625 China Life Insurance Co., Ltd. Class H (N) 1,061,000 3,098 China Telecom Corp., Ltd. Class H 914,000 441 Industrial & Commercial Bank of China (AE)(N) 4,826,000 2,800 PetroChina Co., Ltd. Class H 532,000 652 Ping An Insurance Group Co. of China, Ltd. Class H (N) 82,000 396 ------------ 8,012 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Denmark - 0.4% Carlsberg A/S Class B 4,700 477 FLSmidth & Co. A/S 14,450 947 Genmab A/S (AE) 6,500 412 Novo-Nordisk A/S Class B 13,450 1,159 Topdanmark A/S (AE) 1,220 220 Vestas Wind Systems A/S (AE) 92,900 4,100 ------------ 7,315 ------------ Finland - 0.6% Cargotec Corp. Class B (N) 7,313 433 Kesko OYJ Class B 10,132 540 M-real OYJ Class B 72,190 491 Nokia OYJ 154,053 3,371 Nokia OYJ - ADR 14,453 320 Orion OYJ Class B (AE)(N) 18,522 420 Rautaruukki OYJ 26,164 1,032 UPM-Kymmene OYJ 183,951 4,711 ------------ 11,318 ------------ France - 12.3% Accor SA 71,042 5,889 Air France-KLM (N) 43,057 1,937 Air Liquide SA (N) 26,672 6,212 Alstom RGPT (AE)(N) 75,940 9,274 Arkema (AE)(N) 14,774 743 AXA SA (N) 342,915 14,454 BNP Paribas (N) 140,767 15,696 Capital Gemini SA (N) 17,415 1,105 Carrefour SA (N) 83,933 4,835 Casino Guichard Perrachon SA (N) 7,139 620 Christian Dior SA 7,919 863 Cie de Saint-Gobain (N) 73,579 6,943 Cie Generale d'Optique Essilor International SA (N) 7,831 878 CNP Assurances (N) 10,702 1,225 Credit Agricole SA (N) 398,150 17,052 Eiffage SA (N) 9,006 882 France Telecom SA (N) 244,681 6,761 Gaz de France SA (N) 44,340 1,907 Groupe Danone (N) 9,200 1,417 Iliad SA (N) 21,271 2,077 JC Decaux SA (N) 67,862 2,008 L'Oreal SA (N) 26,590 2,811 Lafarge SA (N) 1,231 189
International Fund 29 RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Lagardere SCA (N) 13,990 1,101 Legrand SA 71,050 2,112 LVMH Moet Hennessy Louis Vuitton SA (N) 56,564 5,964 Natixis 34,640 975 Nexans SA 14,294 1,951 NicOx SA (AE)(N) 11,992 303 Pernod-Ricard SA (N) 21,996 4,504 Peugeot SA (N) 32,194 2,117 PPR SA (N) 15,050 2,220 Renault SA (N) 92,042 11,391 Safran SA (N) 62,804 1,490 Sanofi-Aventis 197,732 17,383 Sanofi-Aventis (N) 2,746 241 Schneider Electric SA (N) 54,997 6,641 Societe BIC SA 2,317 156 Societe Generale (N) 111,664 19,720 Sodexho Alliance SA (N) 12,700 886 Suez SA (AE)(N) 44,739 2,193 Suez SA (AE) 27,332 -- Thomson (AE)(N) 70,250 1,332 Total SA (N) 369,222 24,928 Total SA - ADR 20,252 1,378 Unibail (N) 12,626 3,184 Valeo SA (N) 26,947 1,230 Vallourec SA 38,951 10,067 Veolia Environnement (N) 181,775 12,734 Vivendi Universal SA (N) 74,601 3,071 ------------ 245,050 ------------ Germany - 6.6% Adidas AG 34,290 1,650 Allianz SE 22,511 4,489 BASF AG 27,100 2,611 Bayer AG 343,459 20,234 Bayerische Motoren Werke AG 28,100 1,714 Celesio AG 1,716 98 Commerzbank AG 38,800 1,640 Continental AG 83,089 10,056 DaimlerChrysler AG 15,610 970 Deutsche Bank AG 34,192 4,832 Deutsche Boerse AG 22,526 4,733 Deutsche Lufthansa AG 112,300 3,141 Deutsche Post AG 94,280 2,900 Deutsche Telekom AG 184,700 3,250 E.ON AG 146,628 19,921 Fresenius Medical Care AG & Co. KGaA 6,378 852 GEA Group AG 17,277 401 Hannover Rueckversicherung AG (AE)(N) 35,890 1,601 Hochtief AG 8,948 730 Infineon Technologies AG (AE) 328,558 4,698
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- KarstadtQuelle AG (AE)(N) 53,917 1,738 Lanxess AG (AE) 19,744 1,021 Linde AG 17,782 1,905 MAN AG (N) 10,900 1,147 Medion AG (N) 20,650 237 Merck KGaA (N) 6,100 711 Metro AG 7,870 539 MTU Aero Engines Holding AG 6,554 348 Muenchener Rueckversicherungs AG 30,362 4,788 Praktiker Bau- und Heimwerkermaerkte AG (N) 6,181 228 Rheinmetall AG 5,733 452 RWE AG 102,351 10,672 Salzgitter AG 26,830 3,413 Siemens AG (N) 58,498 6,443 Suedzucker AG 24,039 523 Symrise AG (AE) 36,699 969 ThyssenKrupp AG (N) 5,153 243 Volkswagen AG (N) 13,579 1,513 Wacker Chemie AG (AE) 26,235 4,219 Wincor Nixdorf AG 2,502 397 ------------ 132,027 ------------ Greece - 0.3% Alpha Bank AE 57,400 1,846 Hellenic Telecommunications Organization SA (AE) 107,600 3,192 Public Power Corp. 70,050 2,018 ------------ 7,056 ------------ Hong Kong - 1.8% Bank of East Asia, Ltd. 78,000 448 BOC Hong Kong Holdings, Ltd. (N) 823,500 2,152 Cathay Pacific Airways, Ltd. 332,000 855 Cheung Kong Holdings, Ltd. 10,000 132 China Merchants Holdings International Co., Ltd. 42,000 154 China Mobile, Ltd. 822,500 7,543 China Netcom Group Corp. Hong Kong, Ltd. 132,000 329 China Resources Power Holdings Co. 58,000 91 Citic Pacific, Ltd. 159,100 557 CNOOC, Ltd. (N) 1,612,000 1,371 CNOOC, Ltd. - ADR (N) 21,814 1,871 Dah Sing Financial Holdings, Ltd. 6,000 59 Guangdong Investment, Ltd. 126,000 64 Guangzhou Investment Co., Ltd. 798,000 184 Hang Lung Group, Ltd. 35,000 120
30 International Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Henderson Land Development Co., Ltd. (N) 37,000 214 Hong Kong Exchanges and Clearing, Ltd. 410,000 4,448 HongKong Electric Holdings 673,500 3,330 Hopewell Holdings (N) 44,000 168 Hutchison Whampoa, Ltd. 145,100 1,442 Link REIT (The) (o) 447,000 1,052 Melco International Development 829,000 1,754 New World Development, Ltd. 59,000 129 Shenzhen Investment, Ltd. 162,000 66 Shun Tak Holdings, Ltd. 1,620,000 2,174 Sino Land Co. (N) 344,293 773 Sun Hung Kai Properties, Ltd. 113,000 1,368 Swire Pacific, Ltd. 20,000 229 Wharf Holdings, Ltd. 669,537 2,470 Wheelock & Co., Ltd. 85,000 182 ------------ 35,729 ------------ Hungary - 0.0% MOL Hungarian Oil and Gas PLC 5,900 608 ------------ India - 0.2% ICICI Bank, Ltd. - ADR (N) 82,187 3,629 State Bank of India, Ltd. - GDR 15,300 993 ------------ 4,622 ------------ Indonesia - 0.2% Bank Central Asia Tbk PT 1,918,500 1,075 Telekomunikasi Indonesia Tbk PT 1,689,000 1,754 Telekomunikasi Indonesia Tbk PT - ADR 5,423 228 ------------ 3,057 ------------ Ireland - 0.4% Allied Irish Banks PLC 38,551 1,114 Bank of Ireland 6,900 154 Bank of Ireland PLC 59,214 1,325 C&C Group PLC 36,300 535 Elan Corp. PLC - ADR (AE)(N) 136,600 1,701 Ryanair Holdings PLC - ADR (AE)(N) 38,313 3,321 ------------ 8,150 ------------ Israel - 0.1% Teva Pharmaceutical Industries, Ltd. - ADR 41,500 1,457 ------------ Italy - 4.0% Amplifon SpA (N) 23,152 197 Assicurazioni Generali SpA (N) 56,240 2,421 Banco Popolare di Verona e Novara SCRL (N) 44,745 1,406 Benetton Group SpA 26,860 466
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Buzzi Unicem SpA (N) 68,059 1,929 Capitalia SpA 33,099 298 Enel SpA (N) 88,870 941 ENI SpA 419,588 13,508 ERG SpA (N) 27,249 605 Esprinet SpA 9,280 186 Fastweb (N) 39,900 2,187 Fiat SpA (AE)(N) 95,800 2,080 Fondiaria-Sai SpA (N) 65,957 2,987 Indesit Co. SpA 6,041 107 Intesa Sanpaolo SpA (N) 3,258,663 24,595 Italcementi SpA (N) 42,372 1,245 Mediaset SpA 182,280 2,200 Milano Assicurazioni SpA 120,800 963 Parmalat Finanziaria SpA (N)(B) 46,200 -- Saipem SpA (N) 20,600 504 Saras SpA (AE)(N) 213,760 1,084 Telecom Italia SpA (N) 89,882 225 Toro Assicurazioni SpA 9,374 256 UniCredito Italiano SpA (N) 1,957,529 18,115 Unipol SpA 373,430 1,386 ------------ 79,891 ------------ Japan - 17.1% 77 Bank, Ltd. (The) 151,500 1,001 Aderans Co., Ltd. (N) 5,100 118 Advantest Corp. (N) 38,600 1,932 Aeon Co., Ltd. 231,900 5,044 Aeon Credit Service Co., Ltd. (N) 71,300 1,359 Aiful Corp. (N) 25,653 780 Amada Co., Ltd. 31,000 333 Asahi Breweries, Ltd. 30,900 474 Asahi Glass Co., Ltd. (N) 233,000 3,070 Asahi Kasei Corp. 69,000 459 Astellas Pharma, Inc. 60,600 2,576 Bank of Nagoya, Ltd. (The) 16,000 99 Bridgestone Corp. (N) 84,800 1,841 Brother Industries, Ltd. 31,000 431 Calsonic Kansei Corp. (N) 33,000 187 Canon Marketing Japan, Inc. (N) 6,800 148 Canon, Inc. 397,247 20,903 Chiba Bank, Ltd. (The) 21,000 189 Chugai Pharmaceutical Co., Ltd. (N) 81,100 1,818 Dai Nippon Printing Co., Ltd. (N) 17,000 267 Daiichi Sankyo Co., Ltd. 15,100 420 Daikin Industries, Ltd. (N) 68,300 2,258 Daishi Bank, Ltd. (The) 10,000 41 Daiwa House Industry Co., Ltd. 11,000 186
International Fund 31 RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Daiwa Securities Group, Inc. 61,000 746 Denki Kagaku Kogyo Kabushiki Kaisha 39,000 163 Denso Corp. 10,800 433 Dentsu, Inc. (N) 765 2,282 East Japan Railway Co. 57 395 EDION Corp. (N) 63,700 896 Eisai Co., Ltd. 66,600 3,416 Fanuc, Ltd. 28,400 2,624 Fuji Electric Holdings Co., Ltd. 17,000 80 Fuji Fire & Marine Insurance Co., Ltd. (The) 37,000 143 Fuji Heavy Industries, Ltd. (N) 51,000 267 FUJIFILM Holdings Corp. (N) 56,400 2,327 Fujikura, Ltd. 11,000 96 Fujitsu, Ltd. (N) 86,000 645 Funai Electric Co., Ltd. (N) 12,470 1,137 Higo Bank, Ltd. (The) 2,000 14 Hino Motors, Ltd. 321,000 1,660 Hirose Electric Co., Ltd. (N) 3,500 415 Hitachi, Ltd. (N) 220,000 1,477 Honda Motor Co., Ltd. 119,700 4,711 Hyakugo Bank, Ltd. (The) 6,000 38 Hyakujushi Bank, Ltd. (The) 5,000 31 Ibiden Co., Ltd. 22,400 1,112 Itochu Corp. 86,000 751 Iyo Bank, Ltd. (The) 2,000 20 Izumi Co., Ltd. (N) 6,600 252 Japan Tobacco, Inc. 3,574 17,177 JFE Holdings, Inc. (N) 111,700 6,192 JGC Corp. 7,000 122 JS Group Corp. 49,000 1,119 Kagoshima Bank, Ltd. (The) 6,000 44 Kandenko Co., Ltd. 1,000 6 Kansai Electric Power Co., Inc. (The) 33,900 949 Kao Corp. 560,700 16,029 Kawasaki Kisen Kaisha, Ltd. (N) 47,000 407 KDDI Corp. 914 6,468 Keio Corp. 17,000 113 Keiyo Bank, Ltd. (The) 15,000 91 Kobe Steel, Ltd. 116,000 419 Komatsu, Ltd. 27,000 570 Komori Corp. 3,000 62 Konica Minolta Holdings, Inc. (AE) 7,500 102 Kubota Corp. 56,000 590 Kuraray Co., Ltd. 73,800 889 Kyocera Corp. 6,400 588 Lawson, Inc. (N) 28,400 1,028 Leopalace21 Corp. 22,600 719 Lintec Corp. 2,500 47 Mabuchi Motor Co., Ltd. (N) 6,600 383 Makita Corp. 13,400 463 Marubeni Corp. 468,000 2,521 Matsumotokiyoshi Co., Ltd. (N) 41,400 935
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Matsushita Electric Industrial Co., Ltd. 49,000 974 Matsushita Electric Works, Ltd. 37,000 409 Mazda Motor Corp. (N) 85,000 558 Meiji Dairies Corp. 16,000 122 Millea Holdings, Inc. 81,700 2,918 Mitsubishi Chemical Holdings Corp. 71,000 479 Mitsubishi Corp. 174,800 3,534 Mitsubishi Electric Corp. 76,000 688 Mitsubishi Estate Co., Ltd. 26,000 743 Mitsubishi Heavy Industries, Ltd. 30,000 154 Mitsubishi UFJ Financial Group, Inc. 486 5,880 Mitsui & Co., Ltd. (N) 34,000 543 Mitsui Chemicals, Inc. 297,000 2,400 Mitsui Engineering & Shipbuilding Co., Ltd. (N) 27,000 93 Mitsui Fudosan Co., Ltd. 115,000 2,983 Mitsui OSK Lines, Ltd. (N) 355,000 3,695 Mitsui Sumitomo Insurance Co., Ltd. 10,000 119 Mitsui Trust Holdings, Inc. 385,100 4,215 Mizuho Financial Group, Inc. 602 4,340 Mori Seiki Co., Ltd. (N) 10,000 219 Nabtesco Corp. 6,000 76 Nichirei Corp. 80,000 437 Nihon Unisys, Ltd. 5,900 90 Nikon Corp. 90,000 2,006 Nintendo Co., Ltd. 39,900 11,770 Nippon Electric Glass Co., Ltd. 65,000 1,551 Nippon Express Co., Ltd. (N) 543,800 3,087 Nippon Kayaku Co., Ltd. 3,000 26 Nippon Mining Holdings, Inc. 197,000 1,415 Nippon Oil Corp. 47,000 315 Nippon Paint Co., Ltd. 11,000 58 Nippon Paper Group, Inc. (N) 320 1,217 Nippon Steel Corp. (N) 179,000 1,056 Nippon Telegraph & Telephone Corp. 713 3,557 Nippon Yusen KK (N) 83,000 635 Nissan Motor Co., Ltd. 356,300 4,452 Nisshin Seifun Group, Inc. 21,500 222 Nitto Denko Corp. (N) 16,900 828 NOK Corp. (N) 38,500 676 Nomura Holdings, Inc. 335,800 6,831 Nomura Research Institute, Ltd. 1,200 187 Noritsu Koki Co., Ltd. 1,400 26 NTN Corp. (N) 20,000 181 NTT Data Corp. 27 138 NTT DoCoMo, Inc. 186 284 Oki Electric Industry Co., Ltd. (N) 383,000 819
32 International Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Omron Corp. 69,500 1,872 ORIX Corp. (N) 25,040 7,179 Pacific Metals Co., Ltd. 12,000 138 Rakuten, Inc. (N) 5,927 3,124 Resona Holdings, Inc. (N) 133 369 Ricoh Co., Ltd. 561,500 12,237 Rinnai Corp. 4,770 142 Rohm Co., Ltd. 30,200 2,743 San-In Godo Bank, Ltd. (The) 6,000 55 Sankyo Co., Ltd. 5,600 278 Sapporo Hokuyo Holdings, Inc. 32 321 Secom Co., Ltd. 1,100 54 Sega Sammy Holdings, Inc. 68,600 1,768 Seino Holdings Corp. (N) 13,000 121 Sekisui Chemical Co., Ltd. 190,900 1,470 Sekisui House, Ltd. (N) 158,400 2,221 Seven & I Holdings Co., Ltd. (N) 1,700 51 SFCG Co., Ltd. (N) 3,589 571 Sharp Corp. (N) 147,000 2,503 Shiga Bank, Ltd. (The) (N) 8,000 53 Shimano, Inc. 2,700 79 Shimizu Corp. 18,600 100 Shin-Etsu Chemical Co., Ltd. 17,300 1,124 Shinsei Bank, Ltd. 660,600 3,624 Showa Shell Sekiyu KK 2,900 32 Softbank Corp. 76,700 1,795 Sohgo Security Services Co., Ltd. 13,200 258 Sompo Japan Insurance, Inc. 34,000 432 Sony Corp. 13,700 630 Sumco Corp. (N) 76,400 2,760 Sumitomo Chemical Co., Ltd. 4,000 31 Sumitomo Corp. 10,200 158 Sumitomo Heavy Industries, Ltd. 291,000 3,024 Sumitomo Metal Industries, Ltd. 127,000 539 Sumitomo Mitsui Financial Group, Inc. (N) 1,494 15,227 Sumitomo Realty & Development Co., Ltd. (N) 127,000 4,409 Sumitomo Trust & Banking Co., Ltd. (The) 57,000 610 Suzuken Co., Ltd. 5,300 184 Suzuki Motor Corp. (N) 182,000 5,233 Takeda Pharmaceutical Co., Ltd. 109,100 7,115 Takefuji Corp. (N) 37,560 1,513 TDK Corp. (N) 10,600 891 Terumo Corp. 43,000 1,728 Tobu Railway Co., Ltd. (N) 40,000 189 Toho Co., Ltd./Tokyo (N) 1,400 26 Tokai Rubber Industries, Inc. 5,700 100 Tokyo Electric Power Co., Inc. (The) (N) 92,500 3,150 Tokyo Electron, Ltd. (N) 2,900 205 Tokyo Gas Co., Ltd. 308,000 1,590 Tokyo Style Co., Ltd. 3,000 32
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Tokyu Corp. (N) 54,000 362 Tokyu Land Corp. 4,000 41 Toshiba Corp. (N) 137,000 874 Toyo Seikan Kaisha, Ltd. (N) 2,800 51 Toyobo Co., Ltd. 66,000 200 Toyoda Gosei Co., Ltd. 3,800 90 Toyota Boshoku Corp. 1,200 25 Toyota Motor Corp. 520,700 34,302 West Japan Railway Co. 512 2,283 Yahoo! Japan Corp. 336 126 Yamada Denki Co., Ltd. (N) 26,950 2,238 Yamato Kogyo Co., Ltd. 2,100 55 ------------ 341,809 ------------ Luxembourg - 0.2% Acergy SA (AE)(N) 37,000 717 Millicom International Cellular SA (AE)(N) 33,900 2,252 SES Global SA (N) 42,500 740 ------------ 3,709 ------------ Mexico - 1.0% America Movil SA de CV Series L (N) 210,037 9,317 Cemex SAB de CV - ADR (AE)(N) 141,046 4,990 Coca-Cola Femsa SA de CV - ADR 22,340 894 Fomento Economico Mexicano SA de CV - ADR 29,031 3,486 Grupo Televisa SA - ADR 25,121 740 Telefonos de Mexico SA de CV Series L 26,510 814 ------------ 20,241 ------------ Netherlands - 3.2% ABN AMRO Holding NV 141,250 4,510 Aegon NV 76,921 1,509 Akzo Nobel NV 11,791 742 Arcelor Mittal 70,678 3,285 ASML Holding NV (AE) 160,620 4,057 Buhrmann NV 62,600 937 European Aeronautic Defense and Space Co. NV (N) 71,020 2,357 Hagemeyer NV (AE)(N) 145,375 673 Heineken Holding NV 10,167 440 Heineken NV 54,800 2,776 Hunter Douglas NV 3,692 303 ING Groep NV 455,379 19,913
International Fund 33 RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Koninklijke Ahold NV (AE) 111,954 1,124 Koninklijke Philips Electronics NV 146,677 5,705 Reed Elsevier NV 258,369 4,526 Rodamco Europe NV 2,879 389 Royal KPN NV 93,455 1,346 Royal Numico NV 80,179 4,253 SBM Offshore NV 46,800 1,649 STMicroelectronics NV (N) 45,200 841 TNT NV 15,840 712 Unilever NV 36,309 966 Univar NV 3,261 182 Wolters Kluwer NV 56,400 1,691 ------------ 64,886 ------------ Netherlands Antilles - 0.0% Schlumberger, Ltd. (N) 8,200 521 ------------ New Zealand - 0.1% Telecom Corp. of New Zealand, Ltd. (N) 768,437 2,631 ------------ Norway - 0.4% Aker Kvaerner ASA (N) 12,400 1,401 Telenor ASA 365,700 7,413 ------------ 8,814 ------------ Russia - 0.4% Mobile Telesystems - ADR (N) 72,200 3,910 OAO Gazprom - ADR 20,000 859 Vimpel-Communications - ADR (AE)(N) 27,900 2,384 ------------ 7,153 ------------ Singapore - 1.1% CapitaLand, Ltd. 900,000 3,927 DBS Group Holdings, Ltd. 396,040 5,674 Flextronics International, Ltd. (AE)(N) 97,000 1,128 Fraser and Neave, Ltd. (N) 111,000 379 Jardine Cycle & Carriage, Ltd. 19,000 174 Keppel Corp., Ltd. 165,000 1,923 NatSteel, Ltd. 46,400 46 Oversea-Chinese Banking Corp. 492,800 2,535 Pacific Century Regional Developments, Ltd. (AE)(N) 199,000 43 SembCorp Industries, Ltd. 51,580 144 Singapore Airlines, Ltd. 24,000 275 Singapore Petroleum Co., Ltd. 23,000 65 Singapore Telecommunications, Ltd. 1,494,500 3,406 United Overseas Bank, Ltd. 184,100 2,266 United Overseas Land, Ltd. 43,000 143
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Want Want Holdings, Ltd. 7,000 11 Wheelock Properties S, Ltd. 11,000 19 ------------ 22,158 ------------ South Africa - 0.2% MTN Group, Ltd. 98,200 1,179 Nedbank Group, Ltd. 57,173 1,092 Sanlam, Ltd. 209,900 542 Standard Bank Group, Ltd. 42,500 583 Tiger Brands, Ltd. 20,100 480 ------------ 3,876 ------------ South Korea - 0.7% Honam Petrochemical Corp. (AE) 5,700 461 Hynix Semiconductor, Inc. (AE) 3,690 122 Hyundai Mobis (AE) 3,800 308 Industrial Bank of Korea (AE) 34,000 626 Kookmin Bank (AE) 5,500 437 Korea Electric Power Corp. - ADR (N) 40,610 929 KT Corp. - ADR (N) 27,560 637 LG Electronics, Inc. 14,400 798 POSCO 2,400 840 Samsung Electronics Co., Ltd. 11,138 6,850 Shinhan Financial Group Co., Ltd. (AE) 9,200 481 SK Telecom Co., Ltd. - ADR 34,820 827 ------------ 13,316 ------------ Spain - 2.3% Abengoa SA 8,354 325 Actividades de Construccion y Servicios SA (N) 25,800 1,403 Banco Bilbao Vizcaya Argentaria SA (N) 235,646 5,851 Banco Santander Central Hispano SA (N) 405,469 7,710 Corporacion Mapfre SA 186,581 934 Endesa SA 15,487 779 Fomento de Construcciones y Contratas SA (N) 11,248 1,174 Gamesa Corp. Tecnologica SA (N) 27,700 756 Gestevision Telecinco SA (N) 46,600 1,262 Grifols SA (AE) 16,946 260 Iberdrola SA (N) 108,871 4,654 Iberia Lineas Aereas de Espana 195,782 811 Inditex SA 74,000 4,193 Obrascon Huarte Lain SA 1,906 70 Repsol YPF SA (N) 120,658 3,954 Repsol YPF SA - ADR (N) 20,803 685
34 International Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Telefonica SA 517,316 11,294 Union Fenosa SA 9,470 472 ------------ 46,587 ------------ Sweden - 1.1% Alfa Laval AB 21,000 985 D Carnegie & Co. AB (N) 19,600 444 Electrolux AB (AE)(N) 52,200 988 Hennes & Mauritz AB Class B 18,300 990 JM AB 26,000 698 Kungsleden AB 19,300 314 Lindex AB (N) 37,000 508 Nobia AB 3,050 121 Scania AB Class B (AE) 1,500 107 Skandinaviska Enskilda Banken AB Class A 19,400 648 Skanska AB Class B 25,000 519 Ssab Svenskt Stal AB Series A 46,800 1,135 Series B 9,200 215 Svenska Cellulosa AB Class B 47,940 2,562 Svenska Handelsbanken AB Class A 19,700 602 Swedish Match AB 145,500 2,575 Telefonaktiebolaget LM Ericsson - ADR 155,938 6,205 Telefonaktiebolaget LM Ericsson Class B 569,350 2,253 TeliaSonera AB 79,500 635 Volvo AB Class A 3,100 233 Class B 3,600 264 ------------ 23,001 ------------ Switzerland - 8.4% ABB, Ltd. 681,702 12,059 Actelion, Ltd. (AE) 14,900 3,624 Ciba Specialty Chemicals AG 37,280 2,485 Clariant AG (AE) 53,720 922 Compagnie Financiere Richemont AG Class A (N) 56,760 3,167 Credit Suisse Group 176,016 12,434 Geberit AG 381 644 Givaudan SA 1,950 1,759 Holcim, Ltd. 6,492 643 Julius Baer Holding AG 67,880 8,138 Kudelski SA 5,703 216 Logitech International SA (AE) 121,121 3,457 Lonza Group AG 41,483 3,926 Nestle SA 81,149 29,771 Nobel Biocare Holding AG 8,400 2,781 Novartis AG 89,166 5,130 Roche Holding AG 156,820 29,469 Sulzer AG 934 1,323
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Swatch Group AG 43,746 2,100 Swiss Reinsurance 105,135 8,741 Swisscom AG 3,750 1,401 Syngenta AG (AE) 47,037 8,673 UBS AG 369,171 23,094 Zurich Financial Services AG 6,291 1,692 ------------ 167,649 ------------ Taiwan - 0.4% AU Optronics Corp. 644,000 855 Compal Electronics, Inc. 697,922 630 HON HAI Precision Industry Co., Ltd. 465,800 3,183 Siliconware Precision Industries Co. 519,000 861 Taiwan Semiconductor Manufacturing Co., Ltd. 369,000 755 United Microelectronics Corp. - ADR (N) 356,560 1,266 ------------ 7,550 ------------ Thailand - 0.1% Bangkok Bank PCL 357,880 1,154 PTT PCL 48,200 276 ------------ 1,430 ------------ United Kingdom - 18.1% 3i Group PLC 1,398 29 Admiral Group PLC 27,432 550 Alliance Boots PLC 469,275 7,440 Amvescap PLC 220,149 2,625 Anglo American PLC 37,918 1,761 ARM Holdings PLC 766,484 1,830 AstraZeneca PLC 58,375 3,257 Aviva PLC 445,441 7,185 BAE Systems PLC 1,043,056 8,561 Barclays PLC 881,909 12,822 Berkeley Group Holdings PLC (AE) 163 5 BG Group PLC 587,756 7,720 BHP Billiton PLC 276,298 5,146 BP PLC 1,246,016 13,085 Bradford & Bingley PLC 597 5 British Airways PLC (AE) 99,597 1,052 British American Tobacco PLC 132,906 4,032 British Energy Group PLC (AE) 64,194 552 British Land Co. PLC (o) 110,896 3,419 Brixton PLC (o) 2,500 25 BT Group PLC 322,499 1,939 Cadbury Schweppes PLC 145,493 1,644
International Fund 35 RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Carphone Warehouse Group PLC (N) 428,158 2,593 Centrica PLC 291,038 2,121 Charter PLC (AE) 47,893 800 Compass Group PLC 168,995 1,007 Corus Group PLC 2,872 34 Davis Service Group PLC 13,200 140 De La Rue PLC 18,000 232 Debenhams PLC 828,212 2,697 Diageo PLC 517,805 10,072 Drax Group PLC (AE) 1 -- DSG International PLC 6,311 21 easyJet PLC (AE) 254,184 3,261 EMI Group PLC 100,778 489 Firstgroup PLC 48,463 518 FKI PLC 17,877 40 Friends Provident PLC 660,710 2,817 Galiform PLC (AE) 10,792 28 Gallaher Group PLC 5,749 128 George Wimpey PLC 125,600 1,328 GKN PLC 384,348 2,416 GlaxoSmithKline PLC 886,686 23,779 Hammerson PLC (o) 527 15 HBOS PLC 745,723 16,278 HMV Group PLC (N) 98,835 261 Home Retail Group 330,828 2,762 HSBC Holdings PLC 350,059 6,362 Inchcape PLC 69,272 720 Invensys PLC (AE) 80,378 468 Investec PLC 15,676 192 ITV PLC 9,023 19 J Sainsbury PLC 493,655 4,207 Kelda Group PLC 74,400 1,364 Kesa Electricals PLC 549,965 3,668 Ladbrokes PLC 336,575 2,900 Land Securities Group PLC (o) 11,345 477 Legal & General Group PLC 265,816 808 Lloyds TSB Group PLC 649,498 7,420 Man Group PLC 1,217,559 12,792 Marks & Spencer Group PLC 59,693 793 Marston's PLC 142,400 1,195 Mitchells & Butlers PLC 24,299 332 Next PLC 272,808 10,468 Northern Rock PLC 177,267 4,089 Old Mutual PLC 502,150 1,694 Pearson PLC 84,119 1,325 Premier Farnell PLC 68,313 257 Reckitt Benckiser PLC 336,754 16,203 Reed Elsevier PLC 184,102 2,102 Rentokil Initial PLC 678,790 2,150 Resolution PLC 2,239 29 Rexam PLC 18,530 196 RHM PLC 701 5 Rio Tinto PLC 31,065 1,657 Rolls-Royce Group PLC 98,602 907
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Royal & Sun Alliance Insurance Group PLC 898,710 2,843 Royal Bank of Scotland Group PLC 666,583 26,782 Royal Dutch Shell PLC Class A 532 17,989 Class B 46,482 1,558 SABMiller PLC 84,952 1,926 Scottish & Newcastle PLC 2,502 27 Scottish & Southern Energy PLC 11,571 340 Scottish Power PLC 17,340 255 Severn Trent PLC 40,400 1,123 Slough Estates PLC (o) 43,300 632 Smiths Group PLC 203,250 4,255 Standard Life PLC (AE) 17,299 100 Taylor Woodrow PLC 81,900 655 Tesco PLC 2,825,643 23,205 Trinity Mirror PLC 259,452 2,437 Unilever PLC 394,613 10,730 Vodafone Group PLC 3,641,012 10,587 William Hill PLC 395,004 4,982 WPP Group PLC 310,620 4,559 Xstrata PLC 70,875 3,303 ------------ 361,608 ------------ United States - 0.1% Synthes, Inc. 10,951 1,376 ------------ TOTAL COMMON STOCKS (cost $1,409,275) 1,815,054 ------------
36 International Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- PREFERRED STOCKS - 0.3% Brazil - 0.2% Banco Itau Holding Financeira SA 74,000 2,735 Petroleo Brasileiro SA 29,000 640 Usinas Siderurgicas de Minas Gerais SA 27,500 1,038 ------------ 4,413 ------------ Germany - 0.1% Volkswagen AG 19,602 1,451 ------------ South Korea - 0.0% Hyundai Motor Co. 11,040 454 Samsung Electronics Co., Ltd. 900 423 ------------ 877 ------------ TOTAL PREFERRED STOCKS (cost $5,939) 6,741 ------------
NOTIONAL AMOUNT $ ------------ OPTIONS PURCHASED - 0.1% (Number of Contracts) Belgium - 0.1% Bel 20 Index Futures Feb 2007 4,484.69 (EUR) Call (73) 4,267 476 ------------ Hong Kong - 0.0% Hang Seng Index Futures Feb 2007 20,520.21 (HKD) Call (53) 6,965 170 ------------ Switzerland - 0.0% Swiss Market Index Mar 2007 8,667.21 (CHF) Put (35) 2,439 141 Mar 2007 8,904.44 (CHF) Put (79) 5,656 317 ------------ 458 ------------ TOTAL OPTIONS PURCHASED (cost $1,105) 1,104 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- WARRANTS & RIGHTS - 0.3% France - 0.0% NicOx SA (AE) 12 19 ------------ Germany - 0.0% Merck KGaA (AE) 6 13 ------------ United Kingdom - 0.1% Infosys Technologies, Ltd. 2007 Warrants (AE) 31 1,557 ------------ United States - 0.2% Bharti Tele Ventures, Ltd. 2009 Warrants (AE) 100 1,588 ICICI Bank, Ltd. 2009 Warrants (AE) 48 1,002 Satyam Computer Services, Ltd. (p) 2009 Warrants (AE) 91 970 ------------ 3,560 ------------ TOTAL WARRANTS & RIGHTS (cost $4,643) 5,149 ------------ SHORT-TERM INVESTMENTS - 8.2% United States - 8.2% Russell Investment Company Money Market Fund 157,805,001 157,805 United States Treasury Bills (c)(z)(sec.) 4.973% due 03/15/07 7,000 6,960 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $164,765) 164,765 ------------ OTHER SECURITIES - 19.8% Russell Investment Company Money Market Fund (X) 97,443,520 97,443 State Street Securities Lending Quality Trust (X) 297,098,521 297,099 ------------ TOTAL OTHER SECURITIES (cost $394,542) 394,542 ------------ TOTAL INVESTMENTS - 119.5% (identified cost $1,980,269) 2,387,355 OTHER ASSETS AND LIABILITIES, NET - (19.5)% (389,328) ------------ NET ASSETS - 100.0% 1,998,027 ============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. International Fund 37 RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions AEX Index (Netherlands) expiration date 02/07 (78) 10,129 (145) CAC-40 Index (France) expiration date 02/07 (176) 12,842 91 expiration date 03/07 (60) 4,389 86 DAX Index (Germany) expiration date 03/07 (126) 27,894 833 EUR STOXX 50 Index (EMU) expiration date 03/07 (571) 31,111 516 FTSE-100 Index (UK) expiration date 03/07 (272) 32,940 (108) Hang Seng Index (Hong Kong) expiration date 02/07 (48) 6,194 (86) IBEX Plus Index (Spain) expiration date 02/07 (11) 2,080 15 MSCI Singapore Index expiration date 02/07 (4) 198 -- SPI 200 Index (Australia) expiration date 03/07 (71) 7,895 202 TOPIX Index (Japan) expiration date 03/07 (384) 54,762 2,892 Short Positions FTSE-100 Index (UK) expiration date 03/07 (126) 15,259 (2) MIB-30 (Italy) expiration date 03/07 (35) 9,641 (247) OMX Stockholm 30 Index (Sweden) expiration date 02/07 (415) 7,068 (37) SPI 200 Index (Australia) expiration date 03/07 (105) 11,675 (314) --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 3,696 ===============
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Belgium Bel 20 Index Futures Feb 2007 4,484.69 (EUR) Put (73) 4,267 (517) Hong Kong Hang Seng Index Futures Feb 2007 20,520.21 (HKD) Put (53) 6,965 (290) Switzerland Swiss Market Index Futures Mar 2007 8,667.21 (CHF) Call (35) 2,439 (267) Mar 2007 8,904.44 (CHF) Call (79) 5,656 (452) --------------- Total Liability for Options Written (premiums received $1,105) (1,526) ===============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 38 International Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 65 AUD 84 02/01/07 -- USD 388 AUD 500 03/20/07 -- USD 388 AUD 500 03/20/07 -- USD 388 AUD 500 03/20/07 -- USD 394 AUD 500 03/20/07 (6) USD 939 AUD 1,200 03/20/07 (8) USD 1,655 AUD 2,100 03/20/07 (26) USD 2,099 AUD 2,700 03/20/07 (5) USD 8,516 AUD 10,800 03/20/07 (140) USD 5 AUD 6 03/21/07 -- USD 136 AUD 175 03/21/07 (1) USD 1,382 AUD 1,770 03/21/07 (9) USD 2,085 AUD 2,675 03/21/07 (11) USD 2,910 AUD 3,730 03/21/07 (18) USD 3,902 AUD 5,015 03/21/07 (12) USD 5,871 AUD 7,525 03/21/07 (35) USD 47 CAD 56 02/02/07 -- USD 379 CHF 475 02/01/07 3 USD 716 CHF 898 02/01/07 6 USD 207 CHF 259 02/02/07 1 USD 174 CHF 217 02/02/07 1 USD 433 CHF 541 02/05/07 2 USD 872 CHF 1,082 02/05/07 (2) USD 246 CHF 297 03/21/07 (6) USD 3,897 CHF 4,695 03/21/07 (106) USD 4,140 CHF 4,990 03/21/07 (110) USD 5,613 CHF 6,907 03/21/07 (35) USD 8,556 CHF 10,307 03/21/07 (233) USD 14,513 CHF 17,468 03/21/07 (408) USD 17,912 CHF 21,574 03/21/07 (490) USD 218 DKK 1,257 02/01/07 1 USD 84 DKK 483 03/21/07 -- USD 149 DKK 844 03/21/07 (2) USD 181 DKK 1,021 03/21/07 (2) USD 105 EUR 81 02/01/07 1 USD 149 EUR 115 02/01/07 1 USD 757 EUR 584 02/01/07 4 USD 323 EUR 249 02/01/07 2 USD 1,421 EUR 1,096 02/01/07 8 USD 1,428 EUR 1,102 02/02/07 8 USD 213 EUR 165 02/02/07 1 USD 1,071 EUR 827 02/02/07 6 USD 393 EUR 303 02/02/07 2 USD 146 EUR 112 02/05/07 -- USD 352 EUR 270 02/05/07 1
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 394 EUR 300 03/20/07 (2) USD 649 EUR 500 03/20/07 4 USD 659 EUR 500 03/20/07 (6) USD 1,297 EUR 1,000 03/20/07 9 USD 1,297 EUR 1,000 03/20/07 9 USD 1,304 EUR 1,000 03/20/07 2 USD 1,322 EUR 1,000 03/20/07 (16) USD 1,323 EUR 1,000 03/20/07 (16) USD 1,325 EUR 1,000 03/20/07 (18) USD 2,596 EUR 2,000 03/20/07 16 USD 2,597 EUR 2,000 03/20/07 15 USD 2,598 EUR 2,000 03/20/07 15 USD 2,670 EUR 2,000 03/20/07 (58) USD 2,938 EUR 2,200 03/20/07 (64) USD 5,214 EUR 4,000 03/20/07 11 USD 5,925 EUR 4,500 03/20/07 (47) USD 6,045 EUR 4,530 03/20/07 (128) USD 10,437 EUR 8,000 03/20/07 13 USD 21,751 EUR 16,300 03/20/07 (461) USD 59,382 EUR 44,500 03/20/07 (1,257) USD 6,458 EUR 4,889 03/21/07 (73) USD 8,414 EUR 6,372 03/21/07 (91) USD 21,582 EUR 16,344 03/21/07 (233) USD 164 GBP 83 02/01/07 1 USD 117 GBP 60 02/01/07 -- USD 60 GBP 30 02/02/07 -- USD 201 GBP 103 02/02/07 1 USD 966 GBP 500 03/20/07 16 USD 1,355 GBP 690 03/20/07 1 USD 1,564 GBP 800 03/20/07 8 USD 1,961 GBP 1,000 03/20/07 3 USD 1,970 GBP 1,000 03/20/07 (5) USD 2,161 GBP 1,100 03/20/07 -- USD 2,936 GBP 1,500 03/20/07 10 USD 8,685 GBP 4,500 03/20/07 155 USD 40,660 GBP 20,700 03/20/07 6 USD 611 GBP 311 03/21/07 1 USD 1,991 GBP 1,015 03/21/07 3 USD 6,391 GBP 3,233 03/21/07 (40) USD 7,273 GBP 3,708 03/21/07 12 USD 8,265 GBP 4,213 03/21/07 12 USD 13,499 GBP 6,883 03/21/07 23 USD 16,483 GBP 8,402 03/21/07 23 USD 33 HKD 260 03/21/07 -- USD 41 HKD 320 03/21/07 --
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. International Fund 39 RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 69 HKD 536 03/21/07 (1) USD 71 HKD 552 03/21/07 -- USD 98 HKD 756 03/21/07 (1) USD 197 HKD 1,526 03/21/07 (1) USD 613 JPY 74,674 02/01/07 6 USD 618 JPY 75,281 02/01/07 6 USD 48 JPY 5,835 02/01/07 -- USD 123 JPY 15,001 02/01/07 1 USD 613 JPY 74,432 02/02/07 4 USD 139 JPY 16,859 02/02/07 1 USD 289 JPY 35,166 02/05/07 2 USD 829 JPY 100,000 03/20/07 5 USD 836 JPY 100,000 03/20/07 (2) USD 851 JPY 100,000 03/20/07 (17) USD 865 JPY 100,000 03/20/07 (31) USD 1,654 JPY 200,000 03/20/07 14 USD 1,690 JPY 200,000 03/20/07 (22) USD 1,759 JPY 200,000 03/20/07 (91) USD 3,405 JPY 400,000 03/20/07 (69) USD 8,500 JPY 1,000,000 03/20/07 (160) USD 8,786 JPY 1,000,000 03/20/07 (445) USD 33,388 JPY 3,800,000 03/20/07 (1,695) USD 151 JPY 17,619 03/22/07 (4) USD 2,944 JPY 342,600 03/22/07 (86) USD 7,377 JPY 891,313 03/22/07 59 USD 207 SEK 1,442 02/05/07 -- USD 487 SEK 3,309 03/21/07 (10) USD 1,839 SEK 12,780 03/21/07 5 USD 6,959 SEK 47,628 03/21/07 (86) USD 8,191 SEK 56,139 03/21/07 (90) USD 12,438 SEK 85,214 03/21/07 (142) USD 15,670 SEK 107,257 03/21/07 (193) USD 32 SGD 48 03/21/07 -- USD 184 SGD 282 03/21/07 -- USD 246 SGD 378 03/21/07 -- USD 1,456 SGD 2,232 03/21/07 1 USD 2,153 SGD 3,303 03/21/07 3 USD 3,764 SGD 5,774 03/21/07 5 USD 4,821 SGD 7,377 03/21/07 (5) USD 13,566 SGD 20,816 03/21/07 22 USD 143 ZAR 1,033 02/01/07 -- AUD 60 USD 46 02/02/07 -- AUD 400 USD 313 03/20/07 3 AUD 500 USD 390 03/20/07 2 AUD 500 USD 394 03/20/07 6
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- AUD 600 USD 468 03/20/07 3 AUD 1,100 USD 867 03/20/07 14 AUD 1,400 USD 1,097 03/20/07 11 AUD 1,500 USD 1,182 03/20/07 19 AUD 3,100 USD 2,443 03/20/07 39 AUD 6 USD 5 03/21/07 -- AUD 2,772 USD 2,165 03/21/07 15 AUD 3,382 USD 2,638 03/21/07 15 AUD 4,289 USD 3,348 03/21/07 22 AUD 10,446 USD 8,159 03/21/07 57 CAD -- USD -- 02/01/07 -- CHF 126 USD 101 02/01/07 (1) CHF 170 USD 136 02/02/07 (1) CHF 189 USD 152 02/05/07 -- CHF 8,247 USD 6,844 03/21/07 185 CHF 34,264 USD 28,448 03/21/07 778 DKK 77 USD 14 03/21/07 -- DKK 964 USD 168 03/21/07 (1) DKK 1,464 USD 259 03/21/07 3 DKK 1,623 USD 287 03/21/07 3 EUR 69 USD 89 02/01/07 -- EUR 90 USD 117 02/01/07 (1) EUR 214 USD 277 02/01/07 (2) EUR 37 USD 47 02/01/07 -- EUR 232 USD 301 02/02/07 (2) EUR 286 USD 371 02/02/07 (2) EUR 765 USD 992 02/02/07 (5) EUR 1,000 USD 1,325 03/20/07 19 EUR 1,000 USD 1,335 03/20/07 29 EUR 1,500 USD 1,997 03/20/07 37 EUR 2,000 USD 2,594 03/20/07 (19) EUR 3,000 USD 3,959 03/20/07 40 EUR 3,500 USD 4,597 03/20/07 25 EUR 4,000 USD 5,342 03/20/07 117 EUR 4,500 USD 6,014 03/20/07 136 EUR 5,000 USD 6,635 03/20/07 104 EUR 7,200 USD 9,611 03/20/07 207 EUR 17,900 USD 23,894 03/20/07 514 EUR 609 USD 805 03/21/07 10 EUR 614 USD 811 03/21/07 9 EUR 781 USD 1,031 03/21/07 11 EUR 2,259 USD 2,945 03/21/07 (6) EUR 8,107 USD 10,579 03/21/07 (11) EUR 15,679 USD 20,712 03/21/07 232 EUR 17,517 USD 23,132 03/21/07 251
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 40 International Fund RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- GBP 62 USD 121 02/01/07 -- GBP 93 USD 183 02/02/07 -- GBP 11 USD 22 02/05/07 -- GBP 46 USD 91 02/05/07 -- GBP 500 USD 984 03/20/07 1 GBP 900 USD 1,768 03/20/07 -- GBP 1,000 USD 1,961 03/20/07 (4) GBP 1,000 USD 1,965 03/20/07 1 GBP 1,200 USD 2,343 03/20/07 (15) GBP 1,600 USD 3,143 03/20/07 -- GBP 2,000 USD 3,935 03/20/07 6 GBP 2,000 USD 3,927 03/20/07 (2) GBP 4,600 USD 9,037 03/20/07 1 GBP 3,255 USD 6,386 03/21/07 (7) GBP 5,201 USD 10,028 03/21/07 (190) GBP 16,078 USD 31,540 03/21/07 (45) GBP 8,421 USD 16,459 04/26/07 (85) HKD 2,750 USD 352 02/01/07 -- HKD 75 USD 10 02/01/07 -- HKD 826 USD 106 02/01/07 -- HKD 588 USD 76 03/21/07 -- JPY 29,469 USD 242 02/01/07 (2) JPY 23,698 USD 194 02/02/07 (2) JPY 19,007 USD 156 02/02/07 (1) JPY 2,683 USD 22 02/02/07 -- JPY 19,836 USD 164 02/05/07 -- JPY 68,224 USD 565 02/05/07 (1) JPY 329,650 USD 2,726 02/23/07 (14) JPY 100,000 USD 837 03/20/07 3 JPY 100,000 USD 857 03/20/07 23 JPY 100,000 USD 866 03/20/07 32 JPY 150,000 USD 1,317 03/20/07 66 JPY 200,000 USD 1,714 03/20/07 46 JPY 200,000 USD 1,759 03/20/07 91 JPY 200,000 USD 1,757 03/20/07 89 JPY 200,000 USD 1,759 03/20/07 91 JPY 250,000 USD 2,147 03/20/07 62 JPY 550,000 USD 4,832 03/20/07 245 JPY 600,000 USD 5,169 03/20/07 165 JPY 800,000 USD 7,029 03/20/07 357 JPY 91,987 USD 790 03/22/07 23 JPY 162,866 USD 1,399 03/22/07 41 JPY 351,852 USD 3,022 03/22/07 86 JPY 423,552 USD 3,639 03/22/07 106 JPY 476,308 USD 4,094 03/22/07 120
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- JPY 516,450 USD 4,391 03/22/07 82 JPY 1,039,548 USD 8,934 03/22/07 262 JPY 1,959,907 USD 16,834 03/22/07 483 SEK 4,806 USD 701 03/21/07 8 SEK 6,802 USD 993 03/21/07 12 SEK 28,505 USD 4,163 03/21/07 50 SEK 52,414 USD 7,648 03/21/07 85 SGD 40 USD 26 03/21/07 -- SGD 1,540 USD 1,004 03/21/07 (1) SGD 1,848 USD 1,205 03/21/07 (1) SGD 2,993 USD 1,952 03/21/07 (1) SGD 3,079 USD 2,009 03/21/07 (1) SGD 4,619 USD 3,013 03/21/07 (2) SGD 5,157 USD 3,361 03/21/07 (5) SGD 6,038 USD 3,936 03/21/07 (5) SGD 6,217 USD 4,053 03/21/07 (5) -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (1,667) ==============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. International Fund 41 RUSSELL INVESTMENT COMPANY INTERNATIONAL FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INDEX SWAP CONTRACTS - --------------------------------------------------------------------------------------------------------------------------- UNREALIZED APPRECIATION FUND RECEIVES COUNTER NOTIONAL FUND PAYS TERMINATION (DEPRECIATION) UNDERLYING SECURITY PARTY AMOUNT FLOATING RATE DATE $ - ------------------------------ ---------------- --------- ----------------------- -------------- ---------------- MSCI Belgium II Local Net Total Return 1 Month EUR LIBOR Index Merrill Lynch EUR 3,220 plus 0.15% 06/20/07 (23) MSCI Belgium III Local Net Total Return 1 Month EUR LIBOR Index Merrill Lynch EUR 388 plus 0.15% 06/22/07 (3) MSCI Belgium IV Local Net Total Return 1 Month EUR LIBOR Index Merrill Lynch EUR 315 plus 0.15% 09/19/07 (2) ---------------- Total Unrealized Appreciation (Depreciation) on Open Index Swap Contracts (28) ================
% OF MARKET NET VALUE INDUSTRY DIVERSIFICATION ASSETS $ - ------------------------------------------------------------------------------------ Auto and Transportation 6.3 126,771 Consumer Discretionary 9.1 181,407 Consumer Staples 8.7 173,858 Financial Services 26.4 527,997 Health Care 5.8 117,191 Integrated Oils 4.5 89,275 Materials and Processing 10.2 203,469 Miscellaneous 0.9 17,588 Other Energy 0.7 13,203 Producer Durables 6.3 125,972 Technology 3.0 60,806 Utilities 9.2 184,258 Options Purchased 0.1 1,104 Other Securities 19.8 394,542 Short-Term Investments 8.2 164,765 Warrants & Rights 0.3 5,149 --------------- --------------- Total Investments 119.5 2,387,355 Other Assets and Liabilities, Net (19.5) (389,328) --------------- --------------- Net Assets 100.0 1,998,027 =============== =============== % OF MARKET NET VALUE GEOGRAPHIC DIVERSIFICATION ASSETS $ - ------------------------------------------------------------------------------------ Africa 0.2 3,876 Asia 8.7 174,187 Europe 42.7 853,856 Japan 17.1 341,809 Latin America 2.8 56,375 Middle East 0.1 1,457 Other Regions 10.0 199,645 United Kingdom 18.1 361,608 Other Securities 19.8 394,542 --------------- --------------- Total Investments 119.5 2,387,355 Other Assets and Liabilities, Net (19.5) (389,328) --------------- --------------- Net Assets 100.0 1,998,027 =============== ===============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 42 International Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- LONG-TERM INVESTMENTS - 99.7% Asset-Backed Securities - 6.8% Aames Mortgage Investment Trust (E)(A) Series 2005-3 Class A1 5.500% due 08/25/35 827 827 ABSC NIMs Trust (p) Series 2005-HE6 Class A1 5.050% due 08/27/35 83 82 Accredited Mortgage Loan Trust (E) Series 2004-2 Class A2 5.620% due 07/25/34 93 93 ACE Securities Corp. (E) Series 2005-SD3 Class A 5.720% due 08/25/45 604 605 Series 2006-FM1 Class A2A 5.360% due 07/25/36 931 931 Series 2006-FM1 Class A2B 5.410% due 07/25/36 1,825 1,825 Aegis Asset Backed Securities Trust (E) Series 2003-3 Class M2 6.970% due 01/25/34 350 353 Air 2 US (A) 8.027% due 10/01/19 486 504 American Express Credit Account Master Trust (E)(p) Series 2006-A Class A 5.340% due 01/15/09 1,680 1,680 Ameriquest Mortgage Securities, Inc. (E) Series 2002-D Class M1 7.557% due 02/25/33 155 155 Series 2004-R10 Class A5 5.710% due 11/25/34 66 66 Asset Backed Funding Certificates (E) Series 2006-OPT Class A3A 5.380% due 10/25/36 749 749 Asset Backed Funding Corp. NIMs Trust (p) Series 2005-WF1 Class N1 4.750% due 03/26/35 28 28 Asset Backed Securities Corp. Home Equity (E) Series 2006-HE2 Class A1A 5.570% due 03/25/36 1,846 1,848 Bank One Issuance Trust (E) Series 2003-A1 Class A1 5.470% due 09/15/10 1,100 1,101 Bayview Financial Acquisition Trust Series 2006-A Class 1A3 5.865% due 02/28/41 325 324
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Burlington Northern Santa Fe Corp. Pass-Through Certificate 4.967% due 04/01/23 222 215 Carrington Mortgage Loan Trust (E) Series 2006-NC3 Class A3 5.470% due 08/25/36 2,105 2,106 Chase Issuance Trust (E) Series 2005-A3 Class A 5.370% due 10/17/11 3,095 3,097 Citigroup Mortgage Loan Trust, Inc. (E)(A) Series 2006-SHL Class A1 5.520% due 11/25/45 1,858 1,858 Countrywide Asset-Backed Certificates Series 2001-BC3 Class A (E) 5.830% due 12/25/31 69 69 Series 2004-13 Class AF3 3.989% due 02/25/31 145 143 Series 2004-BC1 Class M1 (E) 5.820% due 02/25/34 190 190 Series 2005-17 Class 1AF1 (E) 5.550% due 12/25/36 303 303 Series 2005-17 Class 4AV1 (E) 5.460% due 05/25/36 459 459 Series 2005-AB3 Class 2A1 (E) 5.470% due 02/25/36 482 482 Series 2006-11 Class 1AF4 6.300% due 09/25/46 505 513 Series 2006-BC1 Class 1A (E) 5.520% due 04/25/36 3,200 3,201 Series 2006-BC4 Class 2A2 (E) 5.480% due 07/25/36 2,220 2,220 Countrywide Asset-Backed NIM Certificates (p) Series 2005-5 Class N 5.000% due 07/25/36 43 41 Countrywide Home Equity Loan Trust (E) Series 2005-A Class 2A 5.590% due 04/15/35 155 156 Series 2005-G Class 2A 5.550% due 12/15/35 773 773 Series 2006-E Class 2A 5.490% due 07/15/36 1,616 1,617 Credit-Based Asset Servicing and Securitization (E) Series 2005-CB5 Class AV2 5.610% due 08/25/35 360 361
Fixed Income I Fund 43 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Credit-Based Asset Servicing and Securitization LLC Series 2004-CB7 Class AF5 4.585% due 10/25/34 550 528 Series 2005-CB1 Class AF2 4.090% due 01/25/35 99 99 Series 2006-CB6 Class A21 (E) 5.360% due 07/25/36 1,911 1,911 Daimler Chrysler Master Owner Trust (E) Series 2006-A Class A 5.350% due 11/15/11 6,720 6,735 Equifirst Mortgage Loan Trust (E) Series 2004-3 Class A2 5.680% due 12/25/34 422 422 Equifirst Mortgage Loan Trust NIMs Notes (p) Series 2005-1 Class N1 4.458% due 04/25/35 23 23 Fannie Mae Series 1992-158 Class ZZ 7.750% due 08/25/22 278 294 Series 1999-56 Class Z 7.000% due 12/18/29 359 371 Fannie Mae Grantor Trust (E) Series 2002-T5 Class A1 5.590% due 05/25/32 520 520 First Franklin Mortgage Loan Asset Backed Certificates (E) Series 2004-FF1 Class A2 5.750% due 12/25/32 331 332 Series 2004-FFH Class 2A1 5.730% due 10/25/34 182 183 Series 2006-FF3 Class A2A 5.430% due 02/25/36 673 673 Ford Credit Floorplan Master Owner Trust (E) Series 2004-1 Class A 5.390% due 07/15/09 1,770 1,770 Freddie Mac Series 1998-210 Class ZM 5.000% due 01/16/09 3,485 3,476 6.000% due 12/15/28 (N) 699 702 Fremont Home Loan Trust (E) Series 2004-4 Class 1A1 5.730% due 03/25/35 1,389 1,390 Series 2006-3 Class 2A1 5.420% due 02/25/37 409 409 Fremont NIMs Trust (p) Series 2005-A 3.750% due 01/25/35 13 13 Series 2005-C Class NOTE 5.584% due 07/25/35 44 43
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- GE Dealer Floorplan Master Note Trust (E) Series 2004-2 Class A 5.400% due 07/20/09 955 955 Series 2005-1 Class A 5.390% due 04/20/10 1,425 1,426 Series 2006-3 Class A 5.360% due 07/20/11 1,980 1,980 GMAC Mortgage Corp. Loan Trust Series 2004-HE5 Class A3 3.970% due 09/25/34 395 391 GSAA Home Equity Trust Series 2006-4 Class 1A2 5.967% due 03/25/36 477 480 GSAA Trust (E) Series 2006-2 Class 2A3 5.590% due 12/25/35 570 571 GSAMP Trust (E) Series 2003-HE2 Class M1 5.970% due 08/25/33 300 301 HFC Home Equity Loan Asset Backed Certificates (E) Series 2006-2 Class A1 5.470% due 03/20/36 2,199 2,199 Home Equity Asset Trust (E) Series 2003-5 Class M1 6.020% due 12/25/33 345 346 Series 2005-2 Class 2A2 5.520% due 07/25/35 195 196 HSI Asset Securitization Corp. Trust (E) Series 2006-HE2 Class 2A1 5.370% due 12/25/36 292 292 JP Morgan Mortgage Acquisition Corp. (E) Series 2005-FLD Class A1 5.470% due 07/25/35 286 286 Series 2006-WMC Class A2 5.370% due 08/25/36 292 292 Lehman XS Trust (E) Series 2005-1 Class 2A1 4.660% due 07/25/35 797 789 Series 2005-1 Class 2A2 4.660% due 07/25/35 270 271 Series 2006-16N Class A1A 5.400% due 11/25/46 833 833 Series 2006-17 Class WF11 5.470% due 11/25/36 1,104 1,105
44 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Long Beach Mortgage Loan Trust (E) Series 2004-4 Class 1A1 5.650% due 10/25/34 123 123 Series 2006-9 Class 2A1 5.410% due 10/25/36 3,419 3,419 Master Asset Backed Securities Trust (E) Series 2005-NC1 Class A1 5.640% due 12/25/34 1,117 1,117 Mastr Asset Backed Securities Trust (E) Series 2003-WMC Class M2 6.970% due 08/25/33 84 84 Merrill Auto Trust Securitization (E) Series 2005-1 Class A2B 5.330% due 04/25/08 22 22 Morgan Stanley ABS Capital I (E) Series 2003-NC8 Class M3 7.420% due 09/25/33 85 86 Series 2004-NC5 Class A2 5.650% due 05/25/34 356 356 Series 2006-HE7 Class A2A 5.370% due 09/25/36 2,319 2,319 Morgan Stanley Mortgage Loan Trust Series 2006-12X Class A6A 5.726% due 10/25/36 415 411 Navistar Financial Corp. Owner Trust (E) Series 2003-B Class A3 5.500% due 04/15/08 61 61 New Century Home Equity Loan Trust (E) Series 2004-4 Class M2 5.850% due 02/25/35 370 372 Series 2005-B Class A2A 5.470% due 10/25/35 211 211 Nissan Master Owner Trust Receivables (E) Series 2005-A Class A 5.380% due 07/15/10 1,305 1,305 Option One Mortgage Loan Trust (E) Series 2003-2 Class M2 7.020% due 04/25/33 113 114 Series 2003-3 Class M3 7.350% due 06/25/33 77 77 Series 2003-4 Class M2 6.970% due 07/25/33 116 117 Option One Mortgage Securities Corp. NIMs Trust (E)(p) Series 2006-1A 5.450% due 12/25/10 1,181 1,181 Origen Manufactured Housing Series 2005-B Class A4 5.910% due 01/15/37 100 98
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Ownit Mortgage Loan Asset Backed Certificates (E) Series 2006-6 Class A2C 5.630% due 09/25/37 2,390 2,391 Park Place Securities, Inc. (E) Series 2004-WWF Class A1D 5.810% due 02/25/35 440 440 Series 2005-WCW Class M1 5.800% due 09/25/35 370 372 Popular ABS Mortgage Pass-Through Trust Series 2005-1 Class AF2 3.914% due 05/25/35 27 26 Series 2005-6 Class A3 5.680% due 01/25/36 390 388 RAAC Series (E)(A) Series 2006-RP2 Class A 5.600% due 02/25/37 1,159 1,160 Renaissance Home Equity Loan Trust Series 2005-1 Class M1 5.357% due 05/25/35 225 221 Series 2005-2 Class AF4 4.934% due 08/25/35 245 243 Series 2005-3 Class AF1 (E) 5.500% due 11/25/35 3 3 Series 2005-3 Class AV1 (E) 5.490% due 10/25/35 486 486 Series 2005-4 Class N (p) 7.142% due 02/25/36 166 165 Series 2006-1 Class AF6 5.746% due 05/25/36 305 307 Residential Asset Mortgage Products, Inc. Series 2003-RS1 Class AI6A 5.980% due 12/25/33 345 347 Series 2003-RS2 Class AII (E) 5.690% due 03/25/33 131 131 Series 2003-RS3 Class AII (E) 5.710% due 04/25/33 89 89 Residential Asset Securities Corp. Series 2001-KS1 Class AII (E) 5.820% due 03/25/32 83 84 Series 2001-KS3 Class AII (E) 5.580% due 09/25/31 64 64 Series 2003-KS1 Class M2 (E) 7.100% due 01/25/33 61 61 Series 2003-KS2 Class MI1 4.800% due 04/25/33 755 737
Fixed Income I Fund 45 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2003-KS2 Class MI3 6.100% due 04/25/33 495 490 Series 2006-KS6 Class A1 (E) 5.360% due 08/25/36 401 401 Residential Funding Mortgage Securities II, Inc. (E) Series 2005-HS1 Class AI1 5.470% due 09/25/35 758 756 Saxon Asset Securities Trust (E) Series 2004-1 Class A 5.620% due 03/25/35 68 68 Securitized Asset Backed Receivables LLC Trust (E) Series 2005-FR4 Class A3 5.550% due 01/25/36 341 341 SLM Student Loan Trust (E) Series 2006-9 Class A1 5.338% due 10/25/12 1,724 1,723 Small Business Administration Series 2000-P10 Class 1 7.449% due 08/01/10 57 60 Soundview Home Equity Loan Trust Series 2006-WF1 Class A2 5.645% due 10/25/36 825 822 Specialty Underwriting & Residential Finance (E) Series 2003-BC1 Class A 5.690% due 01/25/34 15 15 Series 2006-AB1 Class A2 5.490% due 12/25/36 850 850 Structured Asset Investment Loan Trust (E) Series 2004-7 Class A1 5.605% due 08/25/34 149 149 Series 2005-3 Class M2 5.790% due 04/25/35 210 211 Structured Asset Securities Corp. Series 2002-AL1 Class A3 3.450% due 02/25/32 219 204 Series 2004-19X Class A2 4.370% due 10/25/34 622 616 Series 2005-WF1 Class A2 (E) 5.550% due 02/25/35 1,129 1,130 Series 2006-BC3 Class A2 (E) 5.370% due 10/25/36 710 710 Textron Financial Floorplan Master Note Trust (E)(p) Series 2005-1A Class A 5.470% due 05/13/10 1,640 1,643 Truman Capital Mortgage Loan Trust (E)(A) Series 2006-1 Class A 5.610% due 03/25/36 1,750 1,750
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Volkswagen Credit Auto Master Trust (E) Series 2005-1 Class A 5.370% due 07/20/10 1,485 1,485 Wachovia Asset Securitization, Inc. (E) Series 2003-HE3 Class A 5.600% due 11/25/33 190 191 Waverly Community School (E) Series 2006-1 Class A1 5.450% due 05/25/36 998 998 Wells Fargo Home Equity Trust (E)(p) Series 2005-4 Class AI1 5.470% due 12/25/35 667 667 ------------ 96,050 ------------ Certificates of Deposit - 0.4% Abbey National Treasury Services PLC 5.276% due 07/02/08 1,300 1,299 Nordea Bank Finland PLC 5.308% due 05/28/08 400 400 Royal Bank of Canada 5.420% due 06/30/08 1,100 1,099 Societe Generale 5.271% due 06/30/08 2,700 2,705 ------------ 5,503 ------------ Corporate Bonds and Notes - 16.2% Abbott Laboratories 5.600% due 05/15/11 310 313 5.875% due 05/15/16 4,340 4,457 Alamosa Delaware, Inc. 8.500% due 01/31/12 180 191 Alcoa, Inc. 5.550% due 02/01/17 600 596 5.900% due 02/01/27 645 637 Altria Group, Inc. 7.000% due 11/04/13 510 553 American Electric Power Co., Inc. Series C 5.375% due 03/15/10 35 35 American Express Bank (E) Series BKNT 5.330% due 10/16/08 800 800 American General Finance Corp. (E) Series MTNI 5.496% due 06/27/08 1,300 1,303
46 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- American International Group, Inc. 4.700% due 10/01/10 445 436 5.375% due 10/18/11 480 481 5.050% due 10/01/15 (N) 440 427 American RE Corp. (N) Series B 7.450% due 12/15/26 435 498 Ameriprise Financial, Inc. 5.650% due 11/15/15 740 740 Anadarko Petroleum Corp. 5.760% due 09/15/09 (E) 480 481 5.950% due 09/15/16 1,565 1,551 6.450% due 09/15/36 550 545 Apache Corp. 6.000% due 01/15/37 515 514 ASIF Global Financing XIX (A) 4.900% due 01/17/13 50 49 AT&T, Inc. 5.100% due 09/15/14 325 314 BAE Systems Holdings, Inc. (p) 6.400% due 12/15/11 955 989 Bank of America Corp. 5.875% due 02/15/09 180 182 5.375% due 06/19/09 (E) 2,700 2,702 4.375% due 12/01/10 1,520 1,472 5.375% due 08/15/11 460 462 5.750% due 08/15/16 2,305 2,340 Bank of America NA Series BKNT 5.361% due 12/18/08 (E) 1,300 1,300 6.000% due 10/15/36 2,240 2,265 Bank of New York Co., Inc. (The) 5.125% due 11/01/11 540 535 Banque Paribas 6.875% due 03/01/09 350 361 Bear Stearns Cos., Inc. (The) 5.465% due 08/21/09 (E) 800 801 5.350% due 02/01/12 1,955 1,950 BellSouth Corp. 4.750% due 11/15/12 20 19 6.550% due 06/15/34 90 92 Boeing Capital Corp., Ltd. (N) 6.100% due 03/01/11 150 154 Boston Scientific Corp. 6.400% due 06/15/16 600 610 Bundesrepublik Deutschland Series 04 3.750% due 01/04/15 790 1,007 Burlington Northern Santa Fe Corp. 6.875% due 12/01/27 80 86 Calyon NY (E) Series YCD 1.000% due 01/16/09 800 800
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Campbell Soup Co. 5.875% due 10/01/08 165 166 Cardinal Health, Inc. 5.850% due 12/15/17 260 257 Carolina Power & Light Co. 5.150% due 04/01/15 735 712 Caterpillar Financial Services Corp. (E) 5.410% due 10/09/09 2,100 2,101 Caterpillar, Inc. 6.050% due 08/15/36 1,375 1,402 CenterPoint Energy Houston Electric LLC Series J2 5.700% due 03/15/13 195 196 CenterPoint Energy Resources Corp. Series B 7.875% due 04/01/13 440 486 Cingular Wireless Services, Inc. 7.875% due 03/01/11 3,380 3,673 8.750% due 03/01/31 1,845 2,386 Cisco Systems, Inc. 5.500% due 02/22/16 2,900 2,894 CIT Group Holdings, Inc. (E) 5.526% due 01/30/09 2,400 2,404 CIT Group, Inc. 6.875% due 11/01/09 80 83 Citicorp 7.250% due 10/15/11 455 487 Citigroup Funding, Inc. (E) 5.343% due 12/08/08 400 399 Citigroup, Inc. 3.500% due 02/01/08 985 967 5.406% due 12/26/08 (E) 700 700 5.416% due 01/30/09 (E) 2,000 2,001 5.393% due 12/28/09 (E) 800 800 4.125% due 02/22/10 630 611 6.500% due 01/18/11 300 312 5.000% due 09/15/14 5,225 5,065 6.125% due 08/25/36 100 103 Citizens Property Insurance Corp. (p) 7.125% due 02/25/19 505 592 Clear Channel Communications, Inc. 4.250% due 05/15/09 100 97 6.250% due 03/15/11 290 287 Clorox Co. 4.200% due 01/15/10 165 160 Columbus Southern Power Co.
Fixed Income I Fund 47 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series C 5.500% due 03/01/13 85 85 Comcast Cable Communications LLC 6.875% due 06/15/09 480 496 Comcast Cable Holdings LLC 9.800% due 02/01/12 385 453 7.875% due 08/01/13 790 877 Comcast Corp. 6.500% due 01/15/15 855 894 5.900% due 03/15/16 65 65 6.500% due 01/15/17 450 471 6.500% due 11/15/35 825 835 Commonwealth Edison Co. Series 98 6.150% due 03/15/12 240 245 ConocoPhillips Holding Co. 6.950% due 04/15/29 1,155 1,299 Consolidated Natural Gas Co. 6.850% due 04/15/11 810 849 Constellation Energy Group, Inc. 6.125% due 09/01/09 635 646 4.550% due 06/15/15 565 522 COX Communications, Inc. 3.875% due 10/01/08 240 234 6.750% due 03/15/11 2,895 3,017 5.875% due 12/01/16 (p) 100 100 Credit Suisse First Boston USA, Inc. 3.875% due 01/15/09 625 609 4.875% due 08/15/10 120 118 6.500% due 01/15/12 20 21 5.500% due 08/15/13 (N) 95 96 Credit Suisse USA, Inc. (N) 5.250% due 03/02/11 310 309 CRH America, Inc. 6.000% due 09/30/16 1,355 1,368 CVS Corp. 5.750% due 08/15/11 250 253 6.125% due 08/15/16 345 353 CVS Lease Pass Through (A) 6.036% due 12/10/28 190 187 DaimlerChrysler NA Holding Corp. 4.050% due 06/04/08 165 162 5.875% due 03/15/11 300 301 8.500% due 01/18/31 975 1,155 DCP Midstream, LP 6.875% due 02/01/11 35 36 Detroit Edison Co. (The) 6.125% due 10/01/10 120 122 6.350% due 10/15/32 105 109 Devon Energy Corp. 7.950% due 04/15/32 160 193 Dominion Resources, Inc. 4.750% due 12/15/10 90 88 5.700% due 09/17/12 390 394
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series A 5.200% due 01/15/16 555 534 Series C 5.150% due 07/15/15 845 817 Dow Chemical Co. (The) 6.000% due 10/01/12 160 164 DPL, Inc. 6.875% due 09/01/11 430 451 Dresdner Funding Trust I (p) 8.151% due 06/30/31 410 492 DTE Energy Co. 7.050% due 06/01/11 1,400 1,480 Duke Energy Corp. 6.250% due 01/15/12 150 155 5.625% due 11/30/12 185 187 Duke Realty, LP 5.950% due 02/15/17 740 750 Eastman Kodak Co. 7.250% due 11/15/13 30 30 Electronic Data Systems Corp. 7.125% due 10/15/09 460 478 Eli Lilly & Co. 6.770% due 01/01/36 485 550 Erac USA Finance Co. (p) 5.900% due 11/15/15 1,045 1,048 Exelon Corp. 4.900% due 06/15/15 1,065 1,001 5.625% due 06/15/35 520 489 FedEx Corp. 5.500% due 08/15/09 1,290 1,292 7.600% due 07/01/97 135 156 Financing Corp. Principal Only STRIP Series 10P Zero coupon due 11/30/17 940 538 Series 2P Zero coupon due 11/30/17 100 57 Series 6P Zero coupon due 08/03/18 510 281 FirstEnergy Corp. Series B 6.450% due 11/15/11 2,385 2,482 Series C 7.375% due 11/15/31 1,125 1,281 Ford Motor Co. 7.450% due 07/16/31 290 235 Ford Motor Credit Co. 7.375% due 10/28/09 2,430 2,445
48 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Freddie Mac (N) 5.250% due 05/21/09 1,960 1,966 General Electric Capital Corp. 3.250% due 06/15/09 1,065 1,017 5.430% due 01/20/10 (E) 600 601 5.500% due 04/28/11 130 131 4.875% due 03/04/15 495 478 Series mtn (E) 5.390% due 10/26/09 2,700 2,699 Series MTNA 4.125% due 09/01/09 780 760 6.000% due 06/15/12 1,180 1,216 5.450% due 01/15/13 (N) 2,540 2,549 General Motors Corp. 8.375% due 07/05/33 70 90 GMAC LLC 5.625% due 05/15/09 1,375 1,361 7.750% due 01/19/10 230 239 Goldman Sachs Group, Inc. 5.403% due 12/23/08 (E) 100 100 5.456% due 06/23/09 (E) 500 500 5.000% due 01/15/11 150 148 6.875% due 01/15/11 1,020 1,076 4.750% due 07/15/13 1,055 1,013 5.350% due 01/15/16 (N) 940 919 5.625% due 01/15/17 260 257 Series MTNB (E) 5.480% due 07/29/08 2,000 2,003 Goldman Sachs Group, LP 4.500% due 06/15/10 1,055 1,030 Hartford Financial Services Group, Inc. 5.550% due 08/16/08 785 787 5.250% due 10/15/11 630 627 Hess Corp. 7.875% due 10/01/29 60 70 7.300% due 08/15/31 785 870 Historic TW, Inc. 8.050% due 01/15/16 460 523 Home Depot, Inc. 5.250% due 12/16/13 100 99 5.875% due 12/16/36 1,645 1,603 HSBC Bank USA NA (E)(N) Series BKNT 5.493% due 06/10/09 800 803 HSBC Finance Corp. 5.506% due 12/05/08 (E) 500 501 4.750% due 05/15/09 4,580 4,520 5.420% due 10/21/09 (E) 400 400 4.125% due 11/16/09 2,870 2,787 6.750% due 05/15/11 1,115 1,174 7.000% due 05/15/12 1,485 1,592 6.375% due 11/27/12 410 429 5.000% due 06/30/15 250 242
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- ILFC E-Capital Trust II (A) 6.250% due 12/21/65 290 295 International Business Machines Corp. 7.125% due 12/01/96 445 503 International Lease Finance Corp. 3.500% due 04/01/09 570 549 4.750% due 07/01/09 1,435 1,415 5.750% due 06/15/11 230 233 5.625% due 09/20/13 1,845 1,848 International Steel Group, Inc. 6.500% due 04/15/14 185 188 ITT Corp. 7.400% due 11/15/25 195 224 John Deere Capital Corp. 4.875% due 03/16/09 1,315 1,302 JP Morgan Chase Capital XV 5.875% due 03/15/35 2,040 1,964 JP Morgan Chase Capital XX Series T 6.550% due 09/15/66 100 102 JPMorgan Chase & Co. 5.600% due 06/01/11 190 191 5.125% due 09/15/14 1,520 1,483 JPMorgan Chase Bank NA Series BKNT 5.875% due 06/13/16 405 413 Kaupthing Bank Hf (E)(p) 6.062% due 04/12/11 750 755 Kellogg Co. Series B 6.600% due 04/01/11 950 991 Kerr-McGee Corp. 6.950% due 07/01/24 290 305 Kinder Morgan Energy Partners, LP 7.125% due 03/15/12 185 197 5.000% due 12/15/13 115 110 6.000% due 02/01/17 40 40 Kraft Foods, Inc. 4.000% due 10/01/08 1,180 1,153 5.625% due 11/01/11 1,155 1,163 Kroger Co. (The) 7.500% due 04/01/31 65 71 Lehman Brothers Holdings, Inc. 5.464% due 01/23/09 (E) 1,200 1,202 5.450% due 04/03/09 (E) 1,000 1,001
Fixed Income I Fund 49 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 5.475% due 08/21/09 (E)(N) 500 500 5.250% due 02/06/12 610 606 5.500% due 04/04/16 (N) 220 218 Liberty Property, LP 5.500% due 12/15/16 580 567 Manufacturers & Traders Trust Co. 5.585% due 12/28/20 180 177 Marshall & Ilsley Corp. 5.350% due 04/01/11 1,345 1,340 Merrill Lynch & Co., Inc. 5.577% due 07/25/11 (E) 700 702 6.220% due 09/15/26 2,800 2,844 6.110% due 01/29/37 1,765 1,743 Series MTNB 3.125% due 07/15/08 1,125 1,089 Series MTNC 5.430% due 06/16/08 (E) 1,900 1,903 4.250% due 02/08/10 1,170 1,134 Metlife, Inc. 5.700% due 06/15/35 780 752 6.400% due 12/15/36 410 411 Midamerican Energy Co. 5.800% due 10/15/36 965 948 Midamerican Energy Holdings Co. Series WI 6.125% due 04/01/36 2,465 2,478 Miller Brewing Co. (p) 5.500% due 08/15/13 300 296 Monumental Global Funding II (p) 4.625% due 03/15/10 200 195 Morgan Stanley 5.440% due 03/07/08 (E) 500 500 3.625% due 04/01/08 100 98 3.875% due 01/15/09 840 819 5.625% due 01/09/12 370 374 4.750% due 04/01/14 250 237 5.375% due 10/15/15 265 261 5.824% due 10/18/16 (E) 140 141 Series GMTN (E) 5.485% due 02/09/09 100 100 Series MTN (E) 5.450% due 01/15/10 600 600 Motorola, Inc. 5.220% due 10/01/97 780 601 Natexis Ambs Co. LLC (f)(p) 8.440% due 12/29/49 300 311 National Rural Utilities Cooperative Finance Corp. 5.750% due 08/28/09 2,005 2,026 News America Holdings, Inc. 7.750% due 12/01/45 35 40 7.900% due 12/01/95 250 281 8.250% due 10/17/96 50 59
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- News America, Inc. 6.200% due 12/15/34 35 34 Series WI 6.400% due 12/15/35 2,105 2,097 Nisource Finance Corp. 7.875% due 11/15/10 365 393 Norfolk Southern Corp. 6.200% due 04/15/09 645 655 7.050% due 05/01/37 195 221 7.900% due 05/15/97 720 874 6.000% due 03/15/05 410 381 Northern States Power Co. Series B 8.000% due 08/28/12 1,110 1,245 Occidental Petroleum Corp. 9.250% due 08/01/19 150 195 Ohio Power Co. (N) Series F 5.500% due 02/15/13 45 45 ONEOK Partners, LP 6.650% due 10/01/36 515 530 Owens Corning, Inc. (p) 6.500% due 12/01/16 725 736 Pacific Gas & Electric Co. 3.600% due 03/01/09 75 72 4.200% due 03/01/11 640 612 6.050% due 03/01/34 495 495 Pemex Project Funding Master Trust (N) 7.375% due 12/15/14 600 650 5.750% due 12/15/15 200 195 8.625% due 02/01/22 100 122 Progress Energy, Inc. 7.100% due 03/01/11 82 87 7.750% due 03/01/31 95 114 7.000% due 10/30/31 165 183 ProLogis 5.625% due 11/15/15 1,340 1,329 Prudential Financial, Inc. 5.100% due 12/14/11 965 952 Rabobank Capital Funding II (f)(A) 5.260% due 12/31/49 20 19 Rabobank Capital Funding Trust (f)(A) 5.254% due 12/29/49 40 39 RBS Capital Trust III (f) 5.512% due 09/29/49 515 505
50 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Regions Financial Corp. 4.500% due 08/08/08 1,220 1,203 Residential Capital LLC 6.125% due 11/21/08 290 291 6.000% due 02/22/11 685 681 RR Donnelley & Sons Co. 6.125% due 01/15/17 1,185 1,182 Safeway, Inc. (N) 7.250% due 02/01/31 45 48 SBC Communications, Inc. 6.150% due 09/15/34 215 211 Sigma Finance, Inc. (E)(A) 8.500% due 08/11/16 690 690 Simon Property Group, LP 4.600% due 06/15/10 780 760 4.875% due 08/15/10 1,100 1,081 5.750% due 12/01/15 2,670 2,695 6.100% due 05/01/16 850 878 SLM Corp. Series MTNA 4.000% due 01/15/09 1,155 1,127 Sovereign Bank 5.125% due 03/15/13 400 389 Sprint Capital Corp. 8.375% due 03/15/12 360 400 6.875% due 11/15/28 245 244 8.750% due 03/15/32 850 1,009 Sprint Nextel Corp. 6.000% due 12/01/16 3,275 3,184 State Street Bank & Trust Co. (N) Series BKNT 5.300% due 01/15/16 250 246 Suntrust Bank 5.000% due 09/01/15 1,680 1,619 SunTrust Capital VIII 6.100% due 12/01/66 500 486 Time Warner Entertainment Co., LP Series * 8.375% due 07/15/33 1,230 1,497 Time Warner, Inc. 6.875% due 05/01/12 485 513 5.875% due 11/15/16 690 688 7.700% due 05/01/32 100 113 TXU Corp. Series P 5.550% due 11/15/14 110 104 Series R 6.550% due 11/15/34 505 463 TXU Electric Delivery Co. 6.375% due 05/01/12 25 26 TXU Energy Co. LLC 7.000% due 03/15/13 465 487
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Unicredito Italiano NY (E) Series YCD 5.358% due 05/06/08 2,700 2,699 5.370% due 05/29/08 500 499 Unilever Capital Corp. 5.900% due 11/15/32 315 314 Union Pacific Corp. 3.625% due 06/01/10 450 423 United Technologies Corp. 5.400% due 05/01/35 70 67 UnitedHealth Group, Inc. 5.250% due 03/15/11 220 219 US Bancorp 5.300% due 04/28/09 1,450 1,451 US Bank NA 5.700% due 12/15/08 70 70 USB Capital IX (f)(N) 6.189% due 04/15/49 100 102 Verizon Communications, Inc. 5.350% due 02/15/11 775 773 Verizon Global Funding Corp. 7.375% due 09/01/12 275 300 5.850% due 09/15/35 425 402 Verizon Maryland, Inc. (N) Series A 6.125% due 03/01/12 335 342 Verizon Virginia, Inc. (N) Series A 4.625% due 03/15/13 885 833 Viacom, Inc. 5.750% due 04/30/11 280 280 Wachovia Bank NA Series BKNT 5.800% due 12/01/08 280 282 Wachovia Capital Trust III (f) 5.800% due 03/15/42 250 252 Wachovia Corp. 5.700% due 08/01/13 (N) 2,140 2,172 5.250% due 08/01/14 525 516 5.625% due 10/15/16 (N) 400 401 Waste Management, Inc. 6.375% due 11/15/12 555 577 WellPoint, Inc. 5.850% due 01/15/36 120 117 Wells Fargo & Co. 5.300% due 08/26/11 20 20 4.950% due 10/16/13 175 169 Wells Fargo Bank NA 5.750% due 05/16/16 220 224
Fixed Income I Fund 51 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Wells Fargo Capital X 5.950% due 12/15/86 100 98 Weyerhaeuser Co. 6.750% due 03/15/12 1,155 1,214 Wyeth 6.950% due 03/15/11 1,985 2,099 5.500% due 03/15/13 100 100 5.500% due 02/01/14 55 55 XTO Energy, Inc. 7.500% due 04/15/12 40 43 Zurich Capital Trust I (p) 8.376% due 06/01/37 530 555 ------------ 228,736 ------------ International Debt - 3.7% Abbey National PLC (f) 6.700% due 06/29/49 720 729 Aiful Corp. (A) 5.000% due 08/10/10 300 290 Anadarko Finance Co. Series B 7.500% due 05/01/31 515 573 AXA SA 8.600% due 12/15/30 100 129 Banco Mercantil del Norte SA (A) 6.862% due 10/13/21 445 449 Banque Centrale de Tunisie 8.250% due 09/19/27 550 666 BNP Paribas (f)(N)(p) 5.186% due 06/29/49 800 764 British Telecommunications PLC 9.125% due 12/15/30 145 199 China Development Bank 5.000% due 10/15/15 100 97 CIT Group Funding Co. of Canada (N) 5.600% due 11/02/11 220 221 Conoco Funding Co. 6.350% due 10/15/11 815 849 Corp. Nacional del Cobre de Chile (A) 6.150% due 10/24/36 100 102 Crest, Ltd. (p) Series 2003-2A Class C2 5.709% due 12/28/38 1,710 1,671 Deutsche Telekom International Finance BV 5.546% due 03/23/09 (E) 900 901 8.000% due 06/15/10 545 587 5.750% due 03/23/16 300 295 8.250% due 06/15/30 155 189 Egypt Government AID Bonds 4.450% due 09/15/15 660 629 Eksportfinans ASA 5.500% due 05/25/16 450 459
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Export-Import Bank of China (p) 4.875% due 07/21/15 465 446 Export-Import Bank of Korea (p) 4.125% due 02/10/09 255 249 Falconbridge, Ltd. 6.000% due 10/15/15 495 504 Gaz Capital for Gazprom (A) 6.212% due 11/22/16 1,420 1,402 Glitnir Banki HF (A) 6.330% due 07/28/11 270 277 6.693% due 06/15/16 450 465 Harborview NIM Corp. (p) Series 2006-9A Class N1 6.409% due 10/19/36 331 331 HBOS PLC (f)(N)(p) 5.920% due 09/29/49 100 98 HSBC Holdings PLC 6.500% due 05/02/36 345 368 Ispat Inland ULC 9.750% due 04/01/14 610 680 Kaupthing Bank Hf (A) 5.750% due 10/04/11 100 100 7.125% due 05/19/16 1,250 1,320 Klio Funding, Ltd. (E)(p) Series 2004-1A Class A1 5.918% due 04/23/39 1,515 1,525 Korea Electric Power Corp. (p) 5.125% due 04/23/34 125 123 Mexico Government International Bond 5.625% due 01/15/17 16 16 Series MTNA 6.750% due 09/27/34 854 905 Mizuho Financial Group Cayman, Ltd. (p) 5.790% due 04/15/14 315 315 MUFG Capital Finance 1, Ltd. (f) 6.346% due 07/25/49 200 202 National Australia Bank, Ltd. (E)(p) 5.393% due 09/11/09 500 500 Newcastle CDO, Ltd. (p) Series 2004-4A Class 3FX 5.110% due 03/24/39 845 795 Petrobras International Finance Co. 6.125% due 10/06/16 390 391 Petroleum Export, Ltd. (p) 5.265% due 06/15/11 89 86
52 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Province of Quebec Canada Series PJ 6.125% due 01/22/11 1,100 1,135 Ras Laffan Liquefied Natural Gas Co., Ltd. II (p) 5.298% due 09/30/20 435 412 Ras Laffan Liquefied Natural Gas Co., Ltd. III (p) 5.838% due 09/30/27 250 236 Resona Bank, Ltd. (f)(p) 5.850% due 09/29/49 375 365 Resona Preferred Global Securities Cayman, Ltd. (f)(A) 7.191% due 12/29/49 300 314 Royal Bank of Scotland Group PLC (f) Series 1 9.118% due 03/31/49 200 220 Royal Bank of Scotland PLC (E) 5.760% due 07/06/12 2,400 2,402 Royal KPN NV 8.000% due 10/01/10 550 591 Russia Government International Bond 5.000% due 03/31/30 (p) 565 627 Series REGS 5.000% due 03/31/30 1,150 1,282 Santander Financial Issuances 6.375% due 02/15/11 120 124 Santander US Debt SA Unipersonal (E)(p) 5.376% due 11/20/08 1,200 1,200 Sanwa Finance Aruba AEC 8.350% due 07/15/09 460 488 Shinsei Finance Cayman, Ltd. (f)(A) 6.418% due 01/29/49 400 398 Siemens Financieringsmaatschappij NV (p) 5.500% due 02/16/12 1,400 1,407 5.750% due 10/17/16 935 941 6.125% due 08/17/26 1,960 1,991 SMFG Preferred Capital USD 1, Ltd. (f)(A) 1.000% due 01/29/49 970 954 Sumitomo Mitsui Banking Corp. (f)(p) 5.625% due 07/29/49 145 141 Systems 2001 AT LLC (p) 7.156% due 12/15/11 259 266 Talisman Energy, Inc. 6.250% due 02/01/38 2,250 2,140 Telecom Italia Capital SA 5.250% due 10/01/15 2,120 1,967 Telefonica Emisiones SAU (E) 5.665% due 06/19/09 800 801 Telefonica Europe BV 7.750% due 09/15/10 1,610 1,726
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Telefonos de Mexico SA de CV 4.500% due 11/19/08 515 505 TELUS Corp. 8.000% due 06/01/11 755 822 TNK-BP Finance SA (A) Series 144a 7.500% due 07/18/16 400 418 Transocean, Inc. (E) 5.591% due 09/05/08 500 500 Tyco International Group SA 6.750% due 02/15/11 600 634 6.375% due 10/15/11 355 373 6.000% due 11/15/13 720 752 7.000% due 06/15/28 30 35 6.875% due 01/15/29 90 104 Vale Overseas, Ltd. 6.250% due 01/11/16 200 201 6.250% due 01/23/17 (N) 1,155 1,157 6.875% due 11/21/36 570 580 Vodafone Group PLC 5.750% due 03/15/16 175 174 WEA Finance LLC/WCI Finance LLC (p) 5.700% due 10/01/16 2,300 2,303 Xstrata Finance Canada, Ltd. (p) 5.500% due 11/16/11 130 130 5.800% due 11/15/16 130 129 ------------ 51,842 ------------ Loan Agreements - 0.3% Starbound Reinsurance, Ltd., Term Loan B 6.900% due 03/31/08 4,000 4,000 ------------ Mortgage-Backed Securities - 54.7% Adjustable Rate Mortgage Trust (E) Series 2005-3 Class 8A2 5.560% due 07/25/35 461 462 American Home Mortgage Investment Trust (E) Series 2004-4 Class 4A 4.390% due 02/25/45 321 315 Series 2005-2 Class 5A2 5.470% due 09/25/35 564 564 Series 2005-3 Class 3A2 5.500% due 09/25/35 402 402
Fixed Income I Fund 53 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-4 Class 1A1 5.640% due 11/25/45 1,194 1,199 Arcap Reit, Inc. (p) Series 2004-RR3 Class B 5.040% due 09/21/45 420 407 Banc of America Commercial Mortgage, Inc. Series 2004-3 Class A3 4.875% due 06/10/39 885 872 Series 2004-4 Class A3 4.128% due 07/10/42 580 563 Series 2005-2 Class A4 4.783% due 07/10/43 865 841 Series 2005-3 Class A2 4.501% due 07/10/43 445 433 Series 2005-3 Class A4 4.668% due 07/10/43 1,200 1,134 Series 2005-5 Class A4 5.115% due 10/10/45 1,625 1,581 Series 2005-6 Class A1 5.001% due 09/10/47 1,703 1,686 Series 2005-6 Class A2 5.165% due 09/10/47 1,275 1,265 Series 2006-1 Class A4 5.372% due 09/10/45 305 302 Series 2006-3 Class A4 5.889% due 07/10/44 1,030 1,056 Series 2006-4 Class A4 5.634% due 07/10/46 1,350 1,360 Banc of America Funding Corp. Series 2005-5 Class 1A11 5.500% due 09/25/35 917 894 Series 2005-D Class A1 (E) 4.114% due 05/25/35 472 460 Series 2006-3 Class 5A8 5.500% due 03/25/36 820 809 Series 2006-A Class 3A2 5.917% due 02/20/36 3,889 3,902 Series 2006-A Class 4A1 (E) 5.567% due 02/20/36 890 886 Series 2006-B Class 7A1 (E) 5.900% due 03/20/36 930 929 Series 2006-G Class 2A1 (E) 5.540% due 07/20/36 1,161 1,162 Series 2006-G Class 2A2 (E) 5.400% due 07/20/36 1,058 1,057 Banc of America Mortgage Securities, Inc. Series 2003-9 Class 1A12 (E) 5.770% due 12/25/33 1,122 1,125 Series 2004-1 Class 5A1 6.500% due 09/25/33 38 38 Series 2004-11 Class 2A1 5.750% due 01/25/35 722 711
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2004-2 Class 5A1 6.500% due 10/25/31 122 124 Series 2005-L Class 3A1 (E) 5.453% due 01/25/36 437 434 Series 2006-2 Class A15 6.000% due 07/25/36 919 926 Bank of America Alternative Loan Trust Series 2003-10 Class 2A2 (E) 5.820% due 12/25/33 434 437 Series 2003-2 Class CB2 (E) 5.820% due 04/25/33 182 183 Series 2006-5 Class CB17 6.000% due 06/25/36 721 723 Bear Stearns Adjustable Rate Mortgage Trust Series 2004-4 Class A4 3.518% due 06/25/34 380 372 Bear Stearns Alt-A Trust Series 2005-4 Class 23A1 5.390% due 05/25/35 657 657 Series 2006-4 Class 32A1 6.483% due 07/25/36 3,481 3,535 Bear Stearns Commercial Mortgage Securities Series 2005-PWR Class A1 4.386% due 02/11/41 396 391 Series 2006-PW1 Class A1 5.044% due 12/01/38 2,329 2,303 Chase Mortgage Finance Corp. Series 2003-S8 Class A1 4.500% due 09/25/18 460 438 Series 2005-A1 Class 2A2 (E) 5.247% due 12/25/35 1,712 1,694 Series 2006-A1 Class 1A1 (E) 6.068% due 09/25/36 1,583 1,584 Series 2006-A1 Class 4A1 (E) 6.072% due 09/25/36 1,267 1,265 Series 2006-S4 Class A3 6.000% due 12/25/36 770 774 Series 2006-S4 Class A4 6.000% due 12/25/36 405 406 Citigroup Mortgage Loan Trust, Inc. Series 2004-HYB Class A2 (E) 5.157% due 02/25/34 111 112 Series 2005-11 Class A2A (E) 4.700% due 12/25/35 177 174
54 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-WF1 Class A2F 5.657% due 03/01/36 565 556 Series 2006-WFH Class A1 (E) 5.400% due 10/25/36 2,288 2,288 Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2006-CD3 Class A5 5.617% due 10/15/48 540 543 Citimortgage Alternative Loan Trust Series 2006-A3 Class 1A5 6.000% due 07/25/36 481 482 Commercial Mortgage Acceptance Corp. Series 1998-C2 Class A3 6.040% due 09/15/30 3,715 3,731 Countrywide Alternative Loan Trust Series 2004-2CB Class 1A4 (E) 5.750% due 03/25/34 747 749 Series 2005-56 Class 4A1 (E) 5.630% due 11/25/35 1,313 1,317 Series 2005-59 Class 1A1 (E) 5.680% due 11/20/35 1,536 1,541 Series 2005-J12 Class 2A1 (E) 5.620% due 11/25/35 1,274 1,277 Series 2005-J13 Class 2A3 5.500% due 11/25/35 282 280 Series 2005-J8 Class 1A3 5.500% due 07/25/35 672 667 Series 2006-9T1 Class A7 6.000% due 05/25/36 369 371 Series 2006-J2 Class A3 6.000% due 04/25/36 551 553 Countrywide Asset-Backed Certificates (E) Series 2005-IM2 Class A3 5.620% due 01/25/36 2,535 2,539 Countrywide Home Loan Mortgage Pass Through Trust Series 2004-16 Class 1A1 (E)(A) 5.720% due 09/25/34 594 597 Series 2004-7 Class 5A2 (E) 5.620% due 05/25/34 90 90 Series 2005-3 Class 1A2 (E) 5.640% due 04/25/35 92 92 Series 2005-HYB Class 3A2A (E) 5.250% due 02/20/36 168 166 Series 2005-R3 Class AF (E)(p) 5.720% due 09/25/35 1,235 1,242 Series 2006-HYB Class 2A1A 5.758% due 05/20/36 864 867 Credit Suisse First Boston Mortgage Securities Corp. Series 2003-C5 Class A1 3.093% due 12/15/36 309 306
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-C4 Class A3 5.120% due 08/15/38 5,050 4,972 Series 2005-C6 Class A1 4.938% due 12/15/40 1,120 1,108 Series 2005-C6 Class A4 5.230% due 12/15/40 1,265 1,240 Credit Suisse Morgan Stanley Commercial Mortgage Trust (E)(p) Series 2006-HC1 Class A1 5.540% due 05/15/23 1,445 1,445 Credit Suisse Mortgage Capital Certificates Series 2006-C1 Class A1 4.367% due 07/15/10 377 369 Series 2006-C1 Class AAB 5.556% due 02/15/39 945 948 Series 2006-C2 Class A1 5.250% due 03/15/39 841 837 Series 2006-C2 Class A2 5.659% due 03/15/39 870 881 Series 2006-C4 Class A1 4.771% due 09/15/39 2,321 2,282 Series 2006-C4 Class A3 5.467% due 09/15/39 1,210 1,203 Series 2006-TF2 Class SVA1 (E)(p) 5.580% due 10/15/21 2,575 2,575 Series 2006-TFL Class A1 (E)(p) 5.470% due 04/15/21 1,309 1,310 CS First Boston Mortgage Securities Corp. Series 1998-C2 Class A2 6.300% due 11/15/30 281 284 Deutsche ALT-A Securities, Inc. Alternate Loan Trust Series 2005-AR1 Class 2A3 5.010% due 08/25/35 840 845 DLJ Commercial Mortgage Corp. Series 1998-CF1 Class A1B 6.410% due 02/18/31 556 558 Downey Savings & Loan Association Mortgage Loan Trust Series 2004-AR3 Class 1A1B (E) 7.141% due 07/19/44 234 237 Series 2005-AR6 Class 2A1A (E) 5.640% due 10/19/45 1,259 1,264
Fixed Income I Fund 55 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Fannie Mae 7.000% due 2011 7 7 8.000% due 2011 3 3 5.363% due 2012 595 592 5.500% due 2013 13 13 6.500% due 2013 41 42 6.500% due 2015 27 27 7.000% due 2015 9 9 6.000% due 2016 109 111 6.500% due 2016 33 33 5.000% due 2017 242 237 5.500% due 2017 19 19 6.000% due 2017 1,442 1,460 6.500% due 2017 336 344 7.500% due 2017 1 1 9.000% due 2017 1 1 4.500% due 2018 3,897 3,747 5.000% due 2018 3,200 3,137 5.500% due 2018 592 590 6.500% due 2018 355 367 4.500% due 2019 1,290 1,239 5.000% due 2019 10,643 10,423 6.500% due 2019 182 187 4.000% due 2020 3,222 3,015 4.500% due 2020 8,212 7,885 5.000% due 2020 14,682 14,371 6.500% due 2020 72 74 4.000% due 2021 860 806 5.000% due 2021 981 960 6.000% due 2021 3,393 3,430 8.000% due 2024 132 140 8.500% due 2024 27 27 9.000% due 2024 4 5 7.000% due 2025 28 28 8.000% due 2025 1 1 8.500% due 2025 24 25 7.000% due 2026 30 30 9.000% due 2026 5 6 7.000% due 2027 10 10 9.000% due 2027 1 1 6.500% due 2028 541 555 6.500% due 2029 1,150 1,177 7.000% due 2029 161 166 6.500% due 2030 9 10 8.000% due 2030 161 169 6.500% due 2031 173 177 8.000% due 2031 158 166 5.500% due 2032 75 74 6.000% due 2032 1,635 1,647 6.500% due 2032 1,924 1,968 7.000% due 2032 718 737 8.000% due 2032 6 7 3.905% due 2033 (E) 585 577 4.500% due 2033 1,041 972
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 4.681% due 2033 (E) 340 342 5.000% due 2033 7,596 7,307 5.500% due 2033 20,005 19,725 6.000% due 2033 843 849 6.500% due 2033 1,028 1,050 4.500% due 2034 1,326 1,237 5.000% due 2034 11,043 10,310 5.500% due 2034 34,040 33,554 6.000% due 2034 9,158 9,208 6.500% due 2034 917 935 4.500% due 2035 3,650 3,398 4.546% due 2035 (E) 929 920 5.000% due 2035 9,429 9,057 5.500% due 2035 53,932 53,101 6.000% due 2035 6,333 6,367 6.804% due 2035 (E) 824 851 6.812% due 2035 (E) 592 612 6.815% due 2035 (E) 1,337 1,382 5.000% due 2036 18,962 18,206 5.500% due 2036 982 966 6.000% due 2036 9,078 9,105 6.500% due 2036 3,204 3,256 7.000% due 2036 90 92 6.500% due 2037 780 793 Series 1993-134 Class H 6.500% due 2008 766 768 Series 2003-32 Class FH (E) 5.720% due 2022 281 284 Series 2003-337 Class 1 0.000% due 2033 869 629 Series 2003-343 Class 6 5.000% due 2033 854 191 Series 2003-78 Class FI (E) 5.720% due 2033 617 620 Series 2004-21 Class FL (E) 5.670% due 2032 321 321 Series 2005-65 Class FP (E) 6.000% due 2035 454 454 Series 2006-369 Class 8 5.500% due 2036 609 148 15 Year TBA (I) 4.500% 1,335 1,281 5.000% 9,915 9,698 5.500% 4,335 4,316 6.000% 27,100 27,419
56 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 30 Year TBA (I) 4.500% 1,780 1,657 5.000% 39,045 37,459 5.500% 29,294 29,051 6.500% 19,730 20,057 Fannie Mae Grantor Trust Series 2001-T6 Class B 6.088% due 2011 1,810 1,868 Fannie Mae REMICS (E) Series 2006-5 Class 3A2 4.677% due 2035 100 98 Fannie Mae Whole Loan (E) Series 2004-W2 Class 5AF 5.700% due 2044 607 607 Federal Home Loan Mortgage Corp. Structured Pass Through Securities (E) Series 2005-63 Class 1A1 5.958% due 2045 111 111 FHA Project Citi 68 NP 7.430% due 2021 248 251 First Horizon Alternative Mortgage Securities Series 2006-AA5 Class A2 (E) 6.626% due 2036 520 530 Series 2006-FA3 Class A6 6.000% due 2036 480 484 First Horizon Asset Securities, Inc. (E) Series 2005-AR5 Class 3A1 5.527% due 2035 203 203 Freddie Mac 4.750% due 2009 (N) 3,720 3,687 4.500% due 2013 (N) 1,615 1,564 9.000% due 2016 49 52 5.000% due 2018 323 317 5.000% due 2019 630 616 4.500% due 2020 886 850 7.078% due 2027 (E) 38 39 5.500% due 2032 438 432 5.500% due 2033 109 108 4.642% due 2034 (E) 342 345 5.000% due 2035 2,502 2,404 6.000% due 2035 437 437 1.000% due 2036 (E) 769 773 5.000% due 2036 2,802 2,693 5.971% due 2036 (E) 370 374 Series 1993-160 Class I 6.500% due 2008 75 2 Series 2000-226 Class F (E) 5.770% due 2030 12 12 Series 2001-229 Class KF (E) 5.570% due 2022 437 426
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2003-262 Class AB 2.900% due 2014 625 604 Series 2004-277 Class UF (E) 5.620% due 2033 781 782 Series 2004-281 Class DF (E) 5.770% due 2023 239 240 Series 2005-292 Class IG 5.000% due 2023 359 57 Series 2005-294 Class FA (E) 5.490% due 03/15/20 468 467 Series 2005-305 Class JF (E) 5.650% due 2035 525 525 15 Year TBA (I) 5.000% 4,000 3,910 30 Year TBA (I) 5.000% 12,950 12,436 5.500% 15,990 15,735 6.000% 17,370 17,435 Freddie Mac Gold 7.000% due 2008 7 7 8.000% due 2009 5 6 6.000% due 2010 41 41 7.000% due 2010 67 68 8.000% due 2010 17 18 6.000% due 2011 146 148 7.000% due 2011 8 8 6.000% due 2012 3 3 6.000% due 2013 28 28 12.000% due 2014 21 22 6.000% due 2016 385 390 9.000% due 2016 21 21 6.000% due 2017 383 387 4.500% due 2018 1,046 1,005 5.000% due 2018 725 710 4.500% due 2019 987 947 5.500% due 2019 813 810 5.500% due 2020 2,123 2,114 6.500% due 2025 17 18 8.000% due 2025 31 34 9.000% due 2026 1 1 6.500% due 2027 2 2 8.500% due 2027 63 68 6.500% due 2028 198 204 6.500% due 2029 367 378 7.188% due 2030 (E) 6 7 6.000% due 2031 15 15
Fixed Income I Fund 57 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 6.500% due 2031 613 627 5.500% due 2032 2,945 2,907 6.500% due 2032 635 649 7.000% due 2032 285 294 7.500% due 2032 80 83 5.000% due 2033 549 529 5.500% due 2033 5,726 5,648 6.000% due 2033 565 569 4.500% due 2034 151 141 5.000% due 2034 2,452 2,361 5.500% due 2034 2,765 2,727 6.000% due 2034 834 838 6.500% due 2034 56 57 5.000% due 2035 5,084 4,887 5.500% due 2035 2,030 2,002 5.000% due 2036 1,473 1,416 Freddie Mac Reference REMIC Series 2006-R00 Class AK 5.750% due 12/15/18 601 600 Series 2006-R00 Class FK (E) 5.720% due 07/15/23 475 477 Freddie Mac REMIC Series 2004-277 Class KE 3.500% due 12/15/17 338 335 Freddie Mac REMICS Series 2003-269 Class FE (E) 5.920% due 12/15/28 685 690 Series 2005-299 Class KF (E) 5.720% due 06/15/35 249 249 Series 2006-323 Class PA 6.000% due 03/15/26 825 833 GE Capital Commercial Mortgage Corp. Series 2005-C1 Class A1 4.012% due 06/10/48 435 427 Series 2005-C1 Class A5 4.772% due 06/10/48 400 382 Series 2006-C1 Class A4 5.339% due 03/10/44 905 898 Ginnie Mae I 6.500% due 2008 3 3 6.500% due 2009 18 18 6.500% due 2010 4 4 7.000% due 2011 13 14 9.500% due 2016 1 1 8.000% due 2017 10 11 10.500% due 2020 35 37 8.000% due 2022 22 23 8.500% due 2022 1 1 8.500% due 2024 12 12 8.000% due 2025 13 13 8.000% due 2026 115 121 8.000% due 2029 57 60 8.500% due 2029 21 22
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 8.000% due 2030 58 61 8.500% due 2030 15 16 7.000% due 2031 242 250 7.000% due 2032 104 108 5.000% due 2033 3,074 2,972 7.000% due 2033 17 17 5.000% due 2035 503 486 6.000% due 2035 4,633 4,677 30 Year TBA (I) 5.500% 4,960 4,909 6.000% 1,000 1,009 6.500% 3,200 3,273 Ginnie Mae II 5.125% due 10/20/27 (E) 51 52 5.375% due 05/20/30 (E) 34 34 5.000% due 07/20/30 (E) 195 196 7.500% due 07/20/32 16 16 4.500% due 04/20/35 734 683 GMAC Commercial Mortgage Securities, Inc. Series 2001-C1 Class A2 6.465% due 04/15/34 510 528 Series 2005-C1 Class A2 4.471% due 05/10/43 465 453 GMAC Mortgage Corp. Loan Trust Series 2005-AR6 Class 3A1 5.299% due 11/19/35 729 722 Series 2006-AR1 Class 1A1 (E) 5.627% due 03/19/36 1,737 1,731 Government National Mortgage Association (E) Series 1999-40 Class FE 5.870% due 11/16/29 416 420 Greenpoint Mortgage Funding Trust (E) Series 2006-AR5 Class A1A 5.430% due 10/25/46 1,945 1,945 Greenwich Capital Commercial Funding Corp. Series 2004-GG1 Class A7 5.317% due 06/10/36 1,380 1,366 Series 2005-GG3 Class A1 3.919% due 08/10/42 649 638 Series 2005-GG5 Class A41 5.243% due 04/10/37 695 688 Series 2006-RR1 Class A1 (p) 5.781% due 03/18/49 580 588
58 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- GS Mortgage Securities Corp. II Series 1998-C1 Class A2 6.620% due 10/18/30 1,187 1,199 Series 2005-GG4 Class AABA 4.680% due 07/10/39 600 578 Series 2006-FL8 Class A1 (E)(p) 5.420% due 06/06/20 2,375 2,375 Series 2006-GG6 Class A4 5.553% due 04/10/38 305 306 Series 2006-GG8 Class AAB 5.535% due 11/10/39 575 576 GSMPS Mortgage Loan Trust (E)(p) Series 2004-4 Class 1AF 5.750% due 06/25/34 1,138 1,144 Harborview Mortgage Loan Trust Series 2004-4 Class 3A (E) 2.975% due 06/19/34 1,640 1,637 Series 2005-14 Class 3A1A 5.320% due 12/19/35 205 205 Series 2006-2 Class 1A 5.454% due 02/25/36 492 500 Series 2006-3 Class 1A1A (E) 6.445% due 06/19/36 5,877 5,963 Series 2006-14 Class 2A1A (E) 5.520% due 02/19/37 3,172 3,172 HSI Asset Securitization Corp. Trust (E) Series 2005-I1 Class 2A1 5.470% due 11/25/35 913 914 Impac CMB Trust (E) Series 2004-2 Class A2 5.850% due 04/25/34 84 84 Series 2004-3 Class 1A 5.570% due 06/25/34 99 99 Series 2004-5 Class 1A1 5.710% due 10/25/34 411 411 Impac Secured Assets CMN Owner Trust (E) Series 2005-2 Class A1 5.670% due 03/25/36 1,257 1,261 Indymac Index Mortgage Loan Trust Series 2005-AR1 Class A2 5.099% due 09/25/35 329 318 Series 2006-AR2 Class A2 (E) 5.400% due 11/25/36 181 181 Series 2006-AR3 Class 2A1A 6.415% due 03/25/36 7,316 7,414 Indymac Loan Trust (E) Series 2004-L1 Class A1 (p) 5.630% due 07/25/09 227 228 Series 2005-L1 Class A 5.550% due 06/25/10 828 829 Series 2005-L2 Class A1 5.570% due 01/25/11 1,112 1,114
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- JP Morgan Alternative Loan Trust Series 2006-A2 Class 3A1 5.949% due 05/25/36 2,890 2,911 Series 2006-A2 Class 5A1 6.340% due 05/25/36 1,636 1,645 Series 2006-A3 Class 1A2 (E) 5.390% due 07/25/36 1,152 1,151 Series 2006-A4 Class A4 (E) 5.576% due 08/25/36 955 954 Series 2006-A6 Class 1A2 (E) 5.390% due 11/25/36 1,420 1,418 Series 2006-S4 Class A1B (E) 5.430% due 12/25/36 2,706 2,708 JP Morgan Chase Commercial Mortgage Securities Corp. Series 2003-CB7 Class A3 4.449% due 01/12/38 940 909 Series 2004-LN2 Class A1 4.475% due 07/15/41 680 659 Series 2005-CB1 Class A1 4.520% due 08/12/37 967 953 Series 2005-CB1 Class A2 5.247% due 01/12/43 2,550 2,534 Series 2005-CB1 Class A4 4.895% due 09/12/37 80 77 5.294% due 01/12/43 200 198 Series 2005-FL1 Class A1 (E)(p) 5.600% due 02/15/19 866 866 Series 2005-LDP Class A1 5.035% due 12/15/44 3,179 3,150 4.116% due 03/15/46 476 467 Series 2005-LDP Class A3 4.959% due 08/15/42 690 673 5.208% due 12/15/44 2,845 2,817 Series 2005-LDP Class A3A1 4.871% due 10/15/42 1,775 1,733 Series 2005-LDP Class A4 4.918% due 10/15/42 400 384 5.179% due 12/15/44 1,375 1,352 Series 2006-CB1 Class A1 5.279% due 12/12/43 664 662 Series 2006-CB1 Class A3A (p) 5.491% due 12/12/44 1,370 1,373 Series 2006-CB1 Class A4 5.814% due 06/12/43 725 740 5.429% due 12/12/43 1,180 1,167
Fixed Income I Fund 59 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 5.481% due 12/12/44 460 458 5.817% due 05/12/45 1,685 1,687 Series 2006-CB1 Class ASB 5.506% due 12/12/44 365 365 Series 2006-FL1 Class A1A (E)(p) 5.440% due 02/15/20 2,547 2,547 Series 2006-LDP Class A1S 5.179% due 05/15/47 4,594 4,562 Series 2006-LDP Class A4 5.876% due 04/15/45 2,790 2,877 5.561% due 05/15/45 830 822 JP Morgan Mortgage Trust Series 2005-A2 Class 3A1 4.906% due 04/25/35 1,177 1,162 Series 2005-A3 Class 6A1 4.909% due 06/25/35 1,547 1,529 Series 2005-A6 Class 2A2 4.977% due 08/25/35 1,109 1,095 Series 2006-A2 Class 1A1 5.468% due 04/25/36 1,688 1,677 Series 2006-A6 Class 3A1 6.162% due 10/25/36 1,331 1,319 Series 2007-A1 Class 3A2 (E) 5.012% due 07/25/35 4,665 4,617 LB-UBS Commercial Mortgage Trust Series 2001-C3 Class A1 6.058% due 06/15/20 232 234 Series 2003-C3 Class A1 2.599% due 05/15/27 495 482 Series 2004-C2 Class A1 2.946% due 03/15/29 1,357 1,303 Series 2004-C4 Class A3 4.983% due 06/15/29 1,180 1,173 Series 2005-C3 Class A5 4.739% due 07/15/30 340 323 Series 2005-C3 Class AAB 4.664% due 07/15/30 400 385 Series 2006-C4 Class A4 5.899% due 06/15/38 315 325 Lehman Brothers Floating Rate Commercial Mortgage Trust (E)(p) Series 2006-LLF Class A1 5.400% due 09/15/21 426 426 Lehman Mortgage Trust Series 2005-3 Class 1A3 5.500% due 01/25/36 1,147 1,147 Lehman XS Trust (E) Series 2005-5N Class 1A1 5.650% due 11/25/35 986 989 Series 2005-7N Class 1A1B 5.650% due 12/25/35 667 670
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Mach One Trust Commercial Mortgage-Backed (p) Series 2004-1A Class A3 5.220% due 05/28/40 1,350 1,316 Mastr Adjustable Rate Mortgages Trust Series 2006-2 Class 3A1 4.848% due 01/25/36 935 922 Mastr Alternative Loans Trust Series 2003-4 Class B1 5.664% due 06/25/33 344 344 Series 2004-10 Class 5A6 5.750% due 09/25/34 505 496 Mastr Asset Securitization Trust Series 2003-11 Class 6A8 (E) 5.820% due 12/25/33 753 757 Series 2003-7 Class 4A35 (E) 5.720% due 09/25/33 779 779 Series 2004-4 Class 2A2 (E) 5.770% due 04/25/34 312 312 Series 2005-2 Class 1A1 5.250% due 11/25/35 1,198 1,179 Mastr Reperforming Loan Trust (A) Series 2005-1 Class 1A1 6.000% due 08/25/34 635 634 Merrill Lynch Mortgage Trust Series 2004-MKB Class A2 4.353% due 02/12/42 820 801 Series 2005-LC1 Class A1 5.017% due 01/12/44 1,088 1,078 Series 2005-LC1 Class A2 5.202% due 01/12/44 1,265 1,256 Series 2005-MKB Class A1 4.446% due 09/12/42 866 851 Series 2006-C1 Class A4 5.844% due 05/12/39 660 671 Merrill Lynch/Countrywide Commercial Mortgage Trust Series 2006-3 Class A2 5.291% due 07/12/46 1,400 1,392 Series 2006-4 Class A1 3.642% due 12/12/49 1,063 1,019 MLCC Mortgage Investors, Inc. (E) Series 2004-HB1 Class A2 5.771% due 04/25/29 124 124 Morgan Stanley Capital I Series 2004-HQ3 Class A1 3.100% due 01/13/41 327 321 Series 2004-RR2 Class A2 (p) 5.450% due 10/28/33 1,370 1,350
60 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-HQ5 Class A4 5.168% due 01/14/42 880 860 Series 2005-HQ6 Class A4A 4.989% due 08/13/42 530 512 Series 2005-IQ1 Class AAB 5.178% due 09/15/42 750 740 Series 2005-IQ9 Class A1 3.990% due 07/15/56 536 524 Series 2005-T17 Class A5 4.780% due 12/13/41 250 239 Series 2006-HQ8 Class A4 5.388% due 03/12/44 810 809 Series 2006-HQ9 Class A4 5.731% due 07/20/44 585 593 Series 2006-XLF Class A1 (E)(p) 5.440% due 07/15/19 473 473 Morgan Stanley Dean Witter Capital I Series 2001-TOP Class A3 6.200% due 07/15/33 270 271 Morgan Stanley Mortgage Loan Trust Series 2006-11 Class 1A6 6.231% due 08/25/36 650 659 Series 2006-3AR Class 2A3 5.901% due 03/25/36 514 517 Mortgage Capital Funding, Inc. Series 1998-MC2 Class A2 6.423% due 06/18/30 1,610 1,619 Nomura Asset Securities Corp. Series 1998-D6 Class A1B 6.590% due 03/15/30 775 782 Novastar Mortgage-Backed Notes (E) Series 2006-MTA Class 2A1A 5.540% due 09/25/46 1,219 1,220 Novastar NIM Trust (p) Series 2005-N1 4.777% due 10/26/35 22 22 Prime Mortgage Trust Series 2004-CL1 Class 1A2 (E) 5.720% due 02/25/34 98 99 Series 2004-CL1 Class 2A2 (E) 5.720% due 02/25/19 22 22 Series 2006-DR1 Class 2A1 (A) 5.500% due 05/25/35 2,530 2,507 Series 2006-DR1 Class 2A2 (A) 6.000% due 11/25/36 2,234 2,226 Residential Accredit Loans, Inc. Series 2004-QS5 Class A6 (E) 5.950% due 04/25/34 126 126 Series 2004-QS8 Class A4 (E) 5.750% due 06/25/34 625 627 Series 2005-QA1 Class A41 5.717% due 09/25/35 785 780 Series 2005-QA8 Class NB3 5.500% due 07/25/35 473 472
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-QO3 Class A1 (E) 5.750% due 10/25/45 1,243 1,247 Series 2006-QA1 Class A21 5.994% due 01/25/36 2,453 2,462 Series 2006-QO7 Class 3A2 (E) 5.525% due 09/25/46 1,340 1,338 Series 2006-QS6 Class 1A13 6.000% due 06/25/36 1,325 1,329 Residential Asset Securities Corp. (E) Series 2003-KS4 Class AIIB 5.640% due 06/25/33 147 147 Residential Asset Securitization Trust (E) Series 2003-A15 Class 1A2 5.770% due 02/25/34 736 739 Residential Funding Mortgage Securities I (E) Series 2003-S5 Class 1A2 5.800% due 11/25/18 372 374 Series 2003-S14 Class A5 5.750% due 07/25/18 908 911 Series 2003-S20 Class 1A7 5.850% due 12/25/33 238 239 Salomon Brothers Mortgage Securities VII, Inc. Series 2003-UP2 Class A1 4.000% due 12/25/18 407 385 Sequoia Mortgage Trust (E) Series 2004-3 Class A 5.306% due 04/20/34 796 796 Small Business Administration Series 1999-P10 Class 1 7.540% due 08/10/09 247 255 Small Business Administration Participation Certificates Series 2003-20I Class 1 5.130% due 09/01/23 80 79 Structured Adjustable Rate Mortgage Loan Trust (E) Series 2005-19X Class 1A1 5.670% due 10/25/35 937 940 Structured Asset Securities Corp. Series 2004-21X Class 1A3 4.440% due 12/25/34 1,230 1,214
Fixed Income I Fund 61 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Thornburg Mortgage Securities Trust (E) Series 2003-2 Class A1 5.690% due 04/25/43 254 254 Series 2006-1 Class A3 5.520% due 01/25/36 2,530 2,527 Series 2006-3 Class A3 5.430% due 06/25/36 1,871 1,868 Series 2006-6 Class A1 5.430% due 12/25/36 584 584 Tobacco Settlement Authority of Iowa 6.500% due 06/01/23 100 99 Wachovia Bank Commercial Mortgage Trust Series 2003-C9 Class A1 3.291% due 12/15/35 803 782 Series 2005-C16 Class A2 4.380% due 10/15/41 1,195 1,162 Series 2005-C17 Class A1 4.430% due 03/15/42 2,241 2,205 Series 2005-C22 Class A3 5.286% due 12/15/44 1,865 1,855 Washington Mutual Alternative Mortgage Pass-Through Certificates Series 2005-4 Class CB11 5.500% due 06/25/35 275 268 Washington Mutual, Inc. Series 2003-S9 Class A2 (E) 5.900% due 10/25/33 668 671 Series 2004-AR1 Class A1B1 (E) 5.665% due 11/25/34 85 85 Series 2005-AR1 Class 1A1 4.838% due 10/25/35 574 565 Series 2005-AR1 Class A1A1 (E) 5.640% due 10/25/45 1,220 1,221 Series 2005-AR1 Class A1A2 (E) 5.610% due 11/25/45 1,196 1,200 5.610% due 12/25/45 613 615 Series 2005-AR1 Class A1C1 (E) 5.510% due 12/26/45 9 9 Series 2005-AR6 Class B3 (E) 6.010% due 04/25/45 473 472 Wells Fargo Mortgage Backed Securities Trust Series 2006-2 Class 2A3 5.500% due 03/25/36 877 873 Series 2006-AR2 Class 2A1 4.950% due 03/25/36 721 711 Series 2006-AR8 Class 2A3 5.241% due 04/25/36 167 165
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Zuni Mortgage Loan Trust (E) Series 2006-OA1 Class A1 5.450% due 08/25/36 1,510 1,509 ------------ 770,492 ------------ Municipal Bonds - 0.1% Golden State Tobacco Securitization Corp. Revenue Bonds, weekly demand 6.250% due 06/01/33 650 725 State of Texas General Obligation Unlimited, weekly demand 4.750% due 04/01/35 300 304 Tobacco Settlement Financing Corp. Revenue Bonds, weekly demand 6.125% due 06/01/24 150 160 ------------ 1,189 ------------ Non-US Bonds - 0.1% Canadian Government Bond 4.000% due 12/01/31 CAD 120 146 Poland Government Bond Series 1013 5.000% due 10/24/13 PLN 2,540 845 Quebec Residual Principal Only STRIP Zero Coupon due 12/01/36 CAD 830 173 ------------ 1,164 ------------ United States Government Agencies - 4.4% Fannie Mae 3.500% due 03/28/08 1,790 1,755 2.500% due 06/15/08 (N) 3,065 2,957 5.400% due 04/13/09 100 100 4.875% due 04/15/09 (N) 2,415 2,403 7.250% due 01/15/10 600 635 3.875% due 02/15/10 (N) 1,495 1,446 4.750% due 04/19/10 2,950 2,913 4.125% due 05/15/10 (N) 410 398 7.125% due 06/15/10 700 744 4.250% due 08/15/10 (N) 7,620 7,419 5.125% due 04/15/11 (N) 2,615 2,618 6.000% due 05/15/11 700 724 5.000% due 10/15/11 650 647 4.375% due 09/15/12 (N) 470 454 4.375% due 03/15/13 (N) 140 135 Zero coupon due 07/05/14 2,280 1,570 5.250% due 03/24/15 495 487 5.000% due 02/13/17 (N) 460 453
62 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 5.000% due 04/26/17 (N) 945 905 6.625% due 11/15/30 (N) 365 427 6.210% due 08/06/38 420 471 Federal Farm Credit Bank 5.125% due 08/25/16 740 740 Federal Home Loan Bank System 5.400% due 01/02/09 430 429 5.000% due 09/18/09 (N) 8,335 8,322 4.375% due 03/17/10 790 774 5.375% due 08/19/11 (N) 490 496 4.875% due 11/18/11 700 695 5.375% due 05/15/19 315 317 5.125% due 08/15/19 330 327 5.625% due 06/11/21 790 815 5.500% due 07/15/36 310 317 Series 567 4.375% due 09/17/10 350 343 Series VB15 (N) 5.000% due 12/21/15 1,500 1,484 Financing Corp. Principal Only STRIP Zero coupon due 09/26/19 1,355 698 Series 1 Zero coupon due 05/11/16 140 87 Series 12P Zero coupon due 12/06/18 420 227 Series 13 Zero coupon due 12/27/16 490 295 Series 13P Zero coupon due 12/27/18 1,135 610 Series 16P Zero coupon due 04/05/19 1,200 635 Series 19 Zero coupon due 06/06/16 410 254 Series 3P Zero coupon due 11/30/17 300 172 Series 5P Zero coupon due 02/08/18 110 62 Series 8P Zero coupon due 08/03/18 1,085 597 Series 9P Zero coupon due 10/06/17 540 312 Series A-P Zero coupon due 10/06/17 260 150 Series B-P Zero coupon due 04/06/18 565 317 Series C-P Zero coupon due 11/30/17 870 498 Series E-P Zero coupon due 11/02/18 835 453 Freddie Mac 6.875% due 09/15/10 670 709 5.625% due 03/15/11 650 662
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 5.750% due 01/15/12 (N) 2,645 2,718 5.125% due 07/15/12 (N) 1,170 1,171 4.875% due 11/15/13 (N) 1,360 1,341 5.050% due 01/26/15 (N) 1,155 1,150 5.500% due 07/18/16 (N) 455 467 5.125% due 10/18/16 (N) 800 798 5.625% due 11/23/35 520 493 Tennessee Valley Authority 6.150% due 01/15/38 1,560 1,746 ------------ 61,342 ------------ United States Government Treasuries - 13.0% United States Treasury Inflation Indexed Bonds 0.875% due 04/15/10 277 263 2.375% due 04/15/11 (N) 2,995 2,987 3.375% due 01/15/12 (N) 1,918 2,004 2.000% due 07/15/14 (N) 2,165 2,105 1.625% due 01/15/15 53 50 1.875% due 07/15/15 2,445 2,349 2.500% due 07/15/16 2,085 2,105 2.375% due 01/15/25 (N) 4,886 4,855 2.000% due 01/15/26 (N) 2,091 1,961 2.000% due 01/15/27 390 388 3.625% due 04/15/28 (N) 748 900 3.875% due 04/15/29 1,716 2,155 United States Treasury Notes 3.750% due 05/15/08 6,000 5,907 4.750% due 12/31/08 (N) 4,100 4,087 3.250% due 01/15/09 (N) 3,070 2,975 4.000% due 06/15/09 (N) 2,335 2,289 3.375% due 10/15/09 (N) 7,720 7,431 3.625% due 01/15/10 (N) 935 904 3.500% due 02/15/10 7,440 7,160 4.000% due 03/15/10 (N) 8,935 8,721 4.125% due 08/15/10 455 445 3.875% due 09/15/10 (N) 5,675 5,498 4.375% due 12/15/10 50 49 4.875% due 04/30/11 (N) 15,565 15,592 4.625% due 08/31/11 (N) 895 888 4.625% due 10/31/11 50 50 4.750% due 01/31/12 180 179 4.000% due 11/15/12 (N) 3,795 3,643 10.375% due 11/15/12 2,090 2,174 4.250% due 08/15/13 (N) 3,880 3,760
Fixed Income I Fund 63 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 4.250% due 11/15/13 (N) 14,040 13,584 4.750% due 05/15/14 (N) 3,970 3,952 4.250% due 11/15/14 (N) 3,110 2,996 4.125% due 05/15/15 (N) 6,955 6,626 4.250% due 08/15/15 (N) 1,580 1,517 5.125% due 05/15/16 (N) 4,405 4,499 4.875% due 08/15/16 510 511 4.625% due 11/15/16 220 217 8.750% due 05/15/17 (N) 1,885 2,470 8.125% due 08/15/19 (N) 6,230 8,059 8.125% due 08/15/21 (N) 10,030 13,229 Zero Coupon due 11/15/21 (N) 4,835 2,296 7.125% due 02/15/23 (N) 8,865 10,898 6.000% due 02/15/26 (N) 8,235 9,212 6.125% due 08/15/29 (N) 615 708 5.375% due 02/15/31 (N) 1,225 1,293 4.500% due 02/15/36 7,859 7,346 ------------ 183,287 ------------ TOTAL LONG-TERM INVESTMENTS (cost $1,411,958) 1,403,605 ------------ PREFERRED STOCKS - 0.1% Auto and Transportation - 0.0% General Motors Corp. 13,100 285 ------------ Financial Services - 0.1% DG Funding Trust (E)(A) 152 1,600 ------------ TOTAL PREFERRED STOCKS (cost $1,841) 1,885 ------------
NOTIONAL AMOUNT $ ------------ - ----------------------------------------------------------------------------- OPTIONS PURCHASED - 0.0% (Number of Contracts) Eurodollar Futures Jun 2007 91.25 Put (140) 31,938 1 Jun 2007 91.75 Put (190) 43,581 1 Sep 2007 90.75 Put (227) 51,455 1 Dec 2007 91.25 Put (156) 35,588 1 Dec 2007 91.50 Put (3) 686 -- Mar 2008 91.75 Put (630) 144,506 4 ------------ TOTAL OPTIONS PURCHASED (cost $13) 8 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ SHORT-TERM INVESTMENTS - 13.3% Abbey National NA LLC 5.225% due 03/07/07 5,400 5,304 Allstate Life Global Funding Trusts 3.850% due 01/25/08 1,355 1,334 American General Finance Corp. (E) Series MTNG 5.406% due 03/23/07 100 100 AT&T Wireless Services, Inc. 7.500% due 05/01/07 2,605 2,616 AT&T, Inc. (p) 4.214% due 06/05/07 800 800 BNP Paribas 5.293% due 07/03/07 400 400 Bundesobligation Series 139 4.000% due 02/16/07 1,300 1,694 ChevronTexaco Capital Co. 3.500% due 09/17/07 470 465 CIT Group, Inc. 5.750% due 09/25/07 120 120 Countrywide Home Loans, Inc. Series MTNK 5.500% due 02/01/07 100 100 DaimlerChrysler NA Holding Corp. (E) 5.600% due 03/07/07 2,200 2,200 Dexia Delaware LLC 5.260% due 02/01/07 2,200 2,200 DNB Nor Bank ASA 5.200% due 03/26/07 6,200 6,153 Fannie Mae Discount Notes Zero coupon due 06/25/07 430 421 Ford Motor Credit Co. 4.950% due 01/15/08 320 315 France Treasury Bills BTF Zero coupon due 04/05/07 1,300 1,684 General Electric Capital Corp. Series MTNA 4.250% due 01/15/08 220 218
64 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- GMAC LLC 6.125% due 08/28/07 760 760 Golden West Financial Corp. 4.125% due 08/15/07 270 268 Harrah's Operating Co., Inc. 7.125% due 06/01/07 755 758 Morgan Stanley (E) Series MTNF 5.499% due 01/18/08 1,100 1,102 Russell Investment Company Money Market Fund 118,211,183 118,211 Societe Generale NA 5.225% due 05/10/07 5,300 5,225 TELUS Corp. 7.500% due 06/01/07 770 774 Total SA 5.260% due 02/01/07 7,200 7,200 UBS Financial Del LLC 5.225% due 06/01/07 7,900 7,790 United States Treasury Bills (z)(c) 4.8430% due 02/15/07 25 25 4.886% due 02/15/07 50 50 4.888% due 02/15/07 45 45 4.903% due 02/15/07 65 65 4.943% due 02/15/07 35 35 4.9640% due 02/15/07 50 50 5.034% due 02/15/07 160 160 5.131% due 02/15/07 75 75 4.932% due 03/15/07 1,345 1,337 4.969% due 03/15/07 300 298 United States Treasury Notes 4.375% due 05/15/07 (N) 3,630 3,622 6.625% due 05/15/07 515 517 4.250% due 10/31/07 6,150 6,112 3.000% due 11/15/07 800 787 Westpac Banking Corp. 5.250% due 02/06/07 4,600 4,563 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $185,944) 185,954 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- OTHER SECURITIES - 18.6% Russell Investment Company Money Market Fund (X) 64,618,578 64,619 State Street Securities Lending Quality Trust (X) 197,017,556 197,017 ------------ TOTAL OTHER SECURITIES (cost $261,636) 261,636 ------------ TOTAL INVESTMENTS - 131.6% (identified cost $1,861,392) 1,853,088 OTHER ASSETS AND LIABILITIES, NET - (31.6%) (444,923) ------------ NET ASSETS - 100.0% 1,408,156 ============
See accompanying notes which are an integral part of the schedules of investments. Fixed Income I Fund 65 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Euribor Futures expiration date 09/07 (14) 4,372 (16) expiration date 12/07 (46) 14,363 (16) expiration date 03/08 (3) 937 (3) expiration date 06/08 (2) 625 (2) Eurodollar Futures (CME) expiration date 06/07 (93) 22,007 (49) expiration date 09/07 (934) 221,230 (729) expiration date 12/07 (852) 201,999 (565) expiration date 03/08 (334) 79,233 (172) expiration date 06/08 (32) 7,594 (5) expiration date 09/08 (32) 7,596 (5) expiration date 12/08 (75) 17,804 (17) Euroyen Futures expiration date 09/07 (21) 4,317 7 expiration date 12/07 (25) 5,134 7 LIBOR Futures expiration date 03/07 (46) 10,653 9 expiration date 06/07 (10) 2,313 (14) expiration date 09/07 (7) 1,619 (10) expiration date 12/07 (27) 6,246 (37) expiration date 03/08 (7) 1,620 (10) expiration date 06/08 (5) 1,157 (7) expiration date 09/08 (7) 1,621 (10) Germany, Federal Republic 10 Year Bonds expiration date 03/07 (19) 2,847 (45) United States Treasury Bonds expiration date 03/07 (31) 3,414 (60) United States Treasury 2 Year Notes expiration date 03/07 (149) 30,336 (139) United States Treasury 5 Year Notes expiration date 03/07 (556) 58,120 (533) United States Treasury 10 Year Notes expiration date 03/07 (162) 17,294 (187) Short Positions United States Treasury Bonds expiration date 03/07 (69) 7,599 206 United States Treasury 10 Year Notes expiration date 03/07 (181) 19,322 357 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (2,045) ===============
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Eurodollar Futures Mar 2007 94.75 Put (9) 2,132 (3) Mar 2007 95.25 Put (10) 2,381 (15) United States Treasury Notes 2 Year Futures Feb 2007 101.75 Put (73) 14,856 (15) Feb 2007 102.00 Call (368) 75,072 (184) 5 Year Futures May 2007 106.00 Call (292) 30,952 (46) 10 Year Futures Feb 2007 106.00 Call (18) 1,908 (16) Feb 2007 108.00 Call (18) 1,944 (1) Feb 2007 109.00 Call (17) 1,853 -- Feb 2007 110.00 Call (11) 1,210 -- May 2007 111.00 Call (12) 1,332 (11) Feb 2007 107.00 Put (17) 1,819 (9) May 2007 106.00 Put (12) 1,272 (7) United States Treasury Bonds Feb 2007 109.00 Put (18) 1,962 (5) Feb 2007 112.00 Put (10) 1,120 (20) --------------- Total Liability for Options Written (premiums received $188) (332) ===============
See accompanying notes which are an integral part of the schedules of investments. 66 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 361 AUD 462 02/21/07 (3) USD 317 CAD 356 02/07/07 (14) USD 899 CAD 1,063 02/07/07 4 USD 444 CAD 524 02/22/07 2 USD 302 CAD 356 05/09/07 1 USD 258 CNY 1,996 03/19/07 1 USD 1,025 EUR 791 02/07/07 7 USD 2,122 EUR 1,650 02/07/07 29 USD 511 EUR 400 03/23/07 12 USD 540 EUR 420 03/23/07 9 USD 2,152 EUR 1,650 05/09/07 8 USD 53 GBP 27 02/22/07 -- USD 356 GBP 184 02/22/07 5 USD 2,095 JPY 247,044 02/07/07 (46) USD 4,782 JPY 558,077 02/15/07 (148) USD 2,020 JPY 235,140 03/20/07 (59) USD 2,061 JPY 247,044 05/09/07 14 USD 858 PLN 2,556 02/07/07 (4) USD 101 SGD 154 04/30/07 -- USD 95 TWD 3,080 02/22/07 (1) CAD 524 USD 444 02/01/07 (2) CAD 356 USD 302 02/07/07 (1) CAD 1,063 USD 944 02/07/07 41 CAD 460 USD 391 02/22/07 -- CAD 1,063 USD 901 05/09/07 (4) EUR 791 USD 998 02/07/07 (34) EUR 1,650 USD 2,144 02/07/07 (8) EUR 3,402 USD 4,418 02/27/07 (22) EUR 791 USD 1,029 05/09/07 (7) GBP 164 USD 318 02/22/07 (4) JPY 247,044 USD 2,036 02/07/07 (13) JPY 611,250 USD 5,046 02/15/07 (29) PLN 2,556 USD 829 02/07/07 (25) PLN 2,556 USD 860 05/09/07 4 -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (287) ==============
See accompanying notes which are an integral part of the schedules of investments. Fixed Income I Fund 67 RUSSELL INVESTMENT COMPANY FIXED INCOME I FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INTEREST RATE SWAPS CONTRACTS - -------------------------------------------------------------------------------------------------------------------------- MARKET COUNTER NOTIONAL TERMINATION VALUE PARTY AMOUNT FUND RECEIVES FUND PAYS DATE $ - ----------------------- ----------------- ------------------- -------------------- -------------- -------------- Barclays Bank PLC GBP 100 Six Month LIBOR 4.000% 12/15/36 21 Barclays Bank PLC USD 10,700 5.000% Three Month LIBOR 06/20/09 (48) Consumer Price Index BNP Paribas EUR 1,200 2.090% (France) 10/15/10 19 Citibank JPY 37,000 2.000% Six Month LIBOR 12/20/16 5 Mexico Interbank 28 Citibank MXN 1,000 8.170% Day Deposit Rate 11/04/16 -- Deutsche Bank AG JPY 250,000 1.000% Six Month LIBOR 09/18/08 2 Deutsche Bank AG JPY 278,000 2.000% Six Month LIBOR 12/20/16 36 Deutsche Bank AG JPY 100,000 2.500% Six Month LIBOR 12/20/26 22 Deutsche Bank AG USD 9,100 5.000% Three Month LIBOR 06/20/09 (41) Deutsche Bank AG USD 700 5.000% Three Month LIBOR 06/20/37 (48) Goldman Sachs JPY 120,000 1.500% Six Month LIBOR 06/20/12 4 Goldman Sachs JPY 76,000 2.000% Six Month LIBOR 12/20/16 10 JP Morgan GBP 300 Six Month LIBOR 4.000% 12/15/36 63 JP Morgan USD 2,100 5.000% Three Month LIBOR 06/20/37 (143) Lehman Brothers GBP 3,300 4.500% Six Month LIBOR 09/20/09 (148) Lehman Brothers USD 600 5.000% Three Month LIBOR 06/20/37 (41) Merrill Lynch GBP 200 4.000% Six Month LIBOR 12/15/35 5 Merrill Lynch GBP 5,700 4.500% Six Month LIBOR 09/20/09 (257) Morgan Stanley EUR 1,300 6.000% Six Month LIBOR 06/18/34 228 Morgan Stanley JPY 60,000 1.500% Six Month LIBOR 06/20/12 1 Morgan Stanley JPY 10,000 2.000% Six Month LIBOR 12/20/16 1 Royal Bank of Canada CAD 100 4.500% Three Month LIBOR 06/15/27 (3) Royal Bank of Scotland USD 5,300 5.000% Three Month LIBOR 06/20/09 (27) UBS JPY 20,000 2.000% Six Month LIBOR 12/20/16 3 -------------- Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $4,431 (336) ==============
CREDIT DEFAULT SWAP CONTRACTS - ------------------------------------------------------------------------------------------------------------------------ NOTIONAL MARKET REFERENCE COUNTER AMOUNT FUND RECEIVES TERMINATION VALUE ENTITY PARTY $ FIXED RATE DATE $ - ------------------------------ ---------------- --------- -------------------- -------------- ---------------- Andarko Petroleum Corp. Goldman Sachs 200 0.150% 03/20/08 -- Dow Jones CDX High Volatility 4 Index Goldman Sachs 4,000 0.650% 12/20/16 25 Dow Jones CDX High Volatility 4 Index Bank of America 2,000 0.650% 12/20/16 12 Russia Government International Bond Morgan Stanley 100 0.460% 06/20/07 -- Russia Government International Bond Deutsche Bank 2,000 0.260% 12/20/07 -- Russia Government International Bond Merrill Lynch 1,000 0.305% 12/20/08 -- ---------------- Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($27) 37 ================
See accompanying notes which are an integral part of the schedules of investments. 68 Fixed Income I Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ LONG-TERM INVESTMENTS - 83.8% Asset-Backed Securities - 6.2% Accredited Mortgage Loan Trust Series 2004-2 Class A2 5.620% due 07/25/34 100 100 ACE Securities Corp. Series 2004-IN1 Class A1 5.640% due 05/25/34 227 228 Series 2005-SD3 Class A 5.720% due 08/25/45 647 647 Series 2006-ASP Class A2A (E) 5.400% due 10/25/36 351 351 Aegis Asset Backed Securities Trust (E) Series 2003-3 Class M2 6.970% due 01/25/34 265 267 Series 2005-4 Class 1A1 5.430% due 10/25/35 100 100 Alliance Capital Funding LLC (p) Series 1998-1 Class A3 5.840% due 02/15/10 2 2 American Airlines, Inc. 7.377% due 05/23/19 171 169 6.977% due 05/23/21 58 58 6.817% due 11/23/12 125 126 American Express Credit Account Master Trust (E) Series 2002-1 Class A 5.430% due 09/15/09 500 500 Series 2002-2 Class A 5.430% due 11/16/09 675 675 Series 2002-3 Class A 5.430% due 12/15/09 1,075 1,075 Ameriquest Mortgage Securities, Inc. Series 2002-D Class M1 (E) 7.557% due 02/25/33 145 145 Series 2004-R10 Class A5 5.710% due 11/25/34 68 68 Series 2004-R4 Class A1A (E)(p) 5.680% due 06/25/34 175 175 Series 2004-R8 Class A5 5.690% due 09/25/34 217 218 Series 2006-R1 Class A2C 5.510% due 08/01/16 260 260 Argent Securities, Inc. (E) Series 2005-W5 Class A2A 5.430% due 01/25/36 415 415 Asset Backed Securities Corp. Home Equity Series 2005-HE3 Class A4 5.520% due 04/25/35 600 600
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Asset Backed Securities Corp. Home Equity Loan Trust (E) Series 2004-HE6 Class A1 5.625% due 09/25/34 270 270 BA Credit Card Trust (E) Series 2002-A10 Class A10 5.460% due 02/16/10 550 551 BA Master Credit Card Trust Series 2000-E Class A 7.800% due 10/15/12 705 760 Bayview Financial Acquisition Trust Series 2006-A Class 1A3 5.865% due 02/28/41 340 339 Bear Stearns Asset Backed Securities, Inc. Series 2004-BO1 Class 1A1 (E) 5.520% due 09/25/34 139 139 Series 2005-AQ1 Class 2A1 5.540% due 03/25/35 311 311 Series 2005-HE1 Class A1 (E) 5.440% due 11/25/35 226 226 Series 2005-HE8 Class A1 (E) 5.440% due 08/25/35 120 120 Capital Auto Receivables Asset Trust Series 2004-2 Class A2 3.350% due 02/15/08 125 125 Series 2006-2 Class A3B (E) 5.380% due 05/15/11 1,025 1,026 Carrington Mortgage Loan Trust (E) Series 2005-NC4 Class A1 5.500% due 09/25/35 151 151 Series 2006-OPT Class A1 5.415% due 02/25/36 195 195 Chase Credit Card Master Trust (E) Series 2002-1 Class A 5.420% due 06/15/09 1,500 1,500 Chase Manhattan Auto Owner Trust Series 2006-B Class A2 5.280% due 10/15/09 1,000 1,000 Citibank Credit Card Issuance Trust Series 2000-A3 Class A3 6.875% due 11/16/09 200 202 Citifinancial Mortgage Securities, Inc. Series 2003-4 Class AF3 3.221% due 10/25/33 4 4 Citigroup Mortgage Loan Trust, Inc. (E) Series 2006-NC1 Class A2A 5.390% due 08/25/36 485 485
Fixed Income III Fund 69 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Countrywide Asset-Backed Certificates Series 2004-13 Class AF3 3.989% due 02/25/31 123 122 Series 2004-BC1 Class M1 (E) 5.820% due 02/25/34 175 175 Series 2005-16 Class 2AF1 5.500% due 05/25/36 478 478 Series 2006-11 Class 1AF4 6.300% due 09/25/46 405 411 Series 2006-13 Class 1AF3 5.944% due 05/25/33 595 597 Series 2006-15 Class A3 5.689% due 10/25/46 230 230 Series 2006-17 Class 2A1 (E) 5.370% due 03/25/47 449 449 Series 2006-3 Class 2A2 5.500% due 02/25/36 510 511 Series 2006-S2 Class A2 5.627% due 07/25/27 385 384 Series 2006-S3 Class A2 6.085% due 06/25/21 445 448 Series 2006-S6 Class A2 5.519% due 03/25/34 480 478 Series 2006-S7 Class A3 5.712% due 04/25/35 915 913 Series 2006-S9 Class A3 5.728% due 08/25/36 425 425 Countrywide Home Equity Loan Trust (E) Series 2006-H Class 2A1B 5.470% due 11/15/36 1,810 1,811 Credit-Based Asset Servicing and Securitization LLC Series 2005-CB1 Class AF2 4.090% due 01/25/35 102 102 Series 2005-CB4 Class AV1 (E) 5.420% due 08/25/35 153 153 Series 2005-CB5 Class AV1 (E) 5.430% due 08/25/35 105 105 Series 2006-CB5 Class A1 (E) 5.380% due 06/25/36 551 551 Series 2006-SL1 Class A2 (p) 5.556% due 09/25/36 410 409 Series 2007-CB1 Class AF2 5.721% due 01/25/37 335 335 Dunkin Securitization (p) Series 2006-1 Class A2 5.779% due 06/20/31 490 496 Entergy Gulf States, Inc. (E) 5.769% due 12/01/09 100 100 Fannie Mae Grantor Trust Series 2003-T4 Class 2A5 4.907% due 09/26/33 228 227
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Fannie Mae REMICS Series 1993-41 Class ZQ 7.000% due 12/25/23 465 483 Series 1993-42 Class ZQ 6.750% due 04/25/23 527 534 First Franklin Mortgage Loan Asset Backed Certificates (E) Series 2005-FF7 Class A2 5.420% due 07/25/35 355 355 Series 2006-FF1 Class A2 5.370% due 07/25/36 536 536 Fremont Home Loan Trust Series 2005-E Class 2A1 5.410% due 01/25/36 11 11 Series 2006-3 Class 2A1 (E) 5.420% due 02/25/37 328 328 Series 2006-E Class 2A1 (E) 5.410% due 01/25/37 379 379 GE Capital Credit Card Master Note Trust (E) Series 2004-1 Class A 5.370% due 06/15/10 300 300 Series 2004-2 Class A 5.360% due 09/15/10 600 600 GE Dealer Floorplan Master Note Trust Series 2004-2 Class A 5.400% due 07/20/09 625 625 GMAC Mortgage Corp. Loan Trust Series 2004-HE5 Class A3 3.970% due 09/25/34 355 351 GSAA Home Equity Trust Series 2006-4 Class 1A2 5.967% due 03/25/36 499 502 GSAA Trust Series 2006-2 Class 2A3 5.590% due 12/25/35 595 596 GSAMP Trust Series 2003-HE2 Class M1 5.970% due 08/25/33 305 306 Series 2004-SEA Class A2A (E) 5.640% due 03/25/34 155 155 Series 2005-HE4 Class A2A (E) 5.440% due 08/25/35 76 76 Series 2006-HE4 Class A2A (E) 5.390% due 06/25/36 518 518 Series 2006-S3 Class A1 6.085% due 05/25/36 132 132
70 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2007-FM1 Class A2A (E) 5.390% due 12/25/36 900 900 Heritage Property Investment Trust 5.125% due 04/15/14 300 290 Home Equity Asset Trust Series 2003-5 Class M1 6.020% due 12/25/33 460 461 Series 2005-2 Class 2A2 5.520% due 07/25/35 206 206 HSI Asset Securitization Corp. Trust (E) Series 2006-HE2 Class 2A1 5.370% due 12/25/36 292 292 Indymac Residential Asset Backed Trust (E) Series 2006-H2 Class A 5.470% due 06/28/36 869 869 JP Morgan Mortgage Acquisition Corp. (E) Series 2006-WMC Class A2 5.370% due 08/25/36 219 219 Lehman XS Trust (E) Series 2005-1 Class 2A2 4.660% due 07/25/35 249 250 Series 2006-16N Class A1A 5.400% due 11/25/46 648 648 Long Beach Mortgage Loan Trust (E) Series 2004-4 Class 1A1 5.650% due 10/25/34 94 94 Series 2006-1 Class 2A1 5.400% due 02/25/36 149 149 Mastr Asset Backed Securities Trust Series 2003-WMC Class M2 6.970% due 08/25/33 99 99 Merrill Lynch Mortgage Investors, Inc. Series 2005-NCB Class A1A 5.451% due 07/25/36 43 43 Series 2006-AR1 Class A2C 5.480% due 03/25/37 500 500 Mid-State Trust Series 2003-11 Class A1 4.864% due 07/15/38 53 51 Series 2004-1 Class A 6.005% due 08/15/37 54 55 Series 2005-1 Class A 5.745% due 01/15/40 73 70 Series 2006-1 Class A (p) 5.787% due 10/15/40 269 256 Morgan Stanley ABS Capital I Series 2003-NC8 Class M3 7.420% due 09/25/33 91 92 Series 2004-NC5 Class A2 (E) 5.650% due 05/25/34 300 300
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Morgan Stanley Mortgage Loan Trust Series 2006-12X Class A6A 5.726% due 10/25/36 350 346 Nationstar Home Equity Loan Trust (E) Series 2006-B Class AV1 5.380% due 09/25/36 692 692 Nelnet Student Loan Trust (E) Series 2006-3 Class A1 5.338% due 09/25/12 300 300 New Century Home Equity Loan Trust Series 2004-3 Class A6 5.850% due 11/25/34 58 58 Series 2004-4 Class M2 5.850% due 02/25/35 380 382 Newcastle Mortgage Securities Trust (E) Series 2006-1 Class A1 5.390% due 03/25/36 449 449 Northwest Airlines, Inc. (o) 7.041% due 04/01/22 105 106 NWA Trust (o) Series 1995-2 Class A 9.250% due 06/21/14 317 330 Option One Mortgage Loan Trust (E) Series 2003-2 Class M2 7.020% due 04/25/33 104 105 Series 2003-3 Class M3 7.350% due 06/25/33 71 71 Series 2003-4 Class M2 6.970% due 07/25/33 106 107 Series 2005-4 Class A3 5.580% due 11/25/35 510 511 Park Place Securities, Inc. Series 2004-MCW Class A1 (E) 5.632% due 10/25/34 1,210 1,211 Series 2005-WCW Class M1 5.800% due 09/25/35 375 377 Popular ABS Mortgage Pass-Through Trust Series 2005-1 Class AF2 3.914% due 05/25/35 24 24 Series 2005-6 Class A3 5.680% due 01/25/36 415 413 Power Contract Financing LLC (p) 6.256% due 02/01/10 137 138 RAAC Series Series 2006-SP1 Class A1 5.450% due 09/25/45 313 313
Fixed Income III Fund 71 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Renaissance Home Equity Loan Trust Series 2005-1 Class M1 5.357% due 05/25/35 190 186 Series 2005-2 Class AF4 4.934% due 08/25/35 205 203 Series 2005-4 Class A2 5.399% due 02/25/36 185 184 Series 2005-4 Class A3 5.565% due 02/25/36 115 115 Series 2006-1 Class AF6 5.746% due 05/25/36 320 322 Residential Asset Mortgage Products, Inc. Series 2003-RS1 Class AI6A 5.980% due 12/25/33 365 367 Series 2006-RZ3 Class A1 (E) 5.390% due 08/25/36 645 645 Series 2006-RZ4 Class A1A (E) 5.430% due 10/25/36 549 549 Residential Asset Securities Corp. Series 2001-KS3 Class AII (E) 5.580% due 09/25/31 59 59 Series 2003-KS1 Class M2 (E) 7.100% due 01/25/33 32 33 Series 2003-KS2 Class MI1 4.800% due 04/25/33 795 776 Series 2003-KS2 Class MI3 6.100% due 04/25/33 440 436 Saxon Asset Securities Trust (E) Series 2006-3 Class A1 5.380% due 11/25/36 261 261 SBI Heloc Trust (E)(p) Series 2006-1A Class 1A2A 5.490% due 08/25/36 356 356 Securitized Asset Backed Receivables LLC Trust Series 2006-WM1 Class A2A 5.420% due 12/25/35 280 280 Series 2006-WM4 Class A2A (E) 5.430% due 11/25/36 753 753 Sharps SP I, LLC 7.000% due 01/25/34 13 9 SLM Student Loan Trust (E) Series 2006-3 Class A2 5.377% due 01/25/16 384 384 Small Business Administration Series 2000-P10 Class 1 7.449% due 08/01/10 48 50 Small Business Administration Participation Certificates 7.500% due 04/01/17 1,365 1,422 Soundview Home Equity Loan Trust Series 2006-EQ1 Class A1 (E) 5.400% due 10/25/36 419 419
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2006-EQ2 Class A1 (E) 1.704% due 01/25/37 2,699 2,699 Series 2006-WF1 Class A2 5.645% due 10/25/36 695 693 Structured Asset Investment Loan Trust Series 2003-BC1 Class 3A (E) 5.670% due 11/25/33 12 12 Series 2005-3 Class M2 5.790% due 04/25/35 210 211 Structured Asset Mortgage Investments, Inc. (E) Series 2006-AR7 Class A2A 5.580% due 08/25/36 555 556 Structured Asset Securities Corp. Series 2001-SB1 Class A2 3.375% due 08/25/31 157 141 Series 2004-16X Class A2 4.910% due 08/25/34 143 142 Series 2004-19X Class A2 4.370% due 10/25/34 488 483 Series 2005-GEL Class A (E) 5.700% due 12/25/34 239 240 Series 2005-S2 Class A2 5.550% due 06/25/35 476 477 Series 2006-BC3 Class A2 (E) 5.370% due 10/25/36 532 533 Terwin Mortgage Trust (E) Series 2005-12A Class AF1 5.530% due 07/25/36 130 130 Series 2005-8HE Class A1 (p) 5.470% due 07/25/35 32 32 TXU Electric Delivery Transition Bond Co. Series 2004-1 Class A2 4.810% due 11/17/14 100 99 Washington Mutual Alternative Mortgage Pass-Through Certificates (E) Series 2006-AR6 Class 1A 5.540% due 07/25/46 329 329 Wells Fargo Home Equity Trust (E) Series 2005-4 Class AI1 (p) 5.470% due 12/25/35 500 500 Series 2006-3 Class A1 5.380% due 01/25/37 395 395
72 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ World Financial Properties (p) 6.910% due 09/01/13 146 153 6.950% due 09/01/13 175 182 ------------ 57,873 ------------ Certificates of Deposit - 0.3% Bank of Ireland 5.400% due 01/15/10 2,200 2,199 Nordea Bank Finland PLC 5.308% due 05/28/08 300 300 Royal Bank of Canada 5.420% due 06/30/08 900 900 ------------ 3,399 ------------ Corporate Bonds and Notes - 16.6% Abbott Laboratories 5.600% due 05/15/11 405 409 5.875% due 05/15/16 200 205 Ace Capital Trust II 9.700% due 04/01/30 375 507 AIG SunAmerica Global Financing VI (p) 6.300% due 05/10/11 375 389 Aig-Fp Matched Funding (E)(p) 5.361% due 06/16/08 400 400 Alamosa Delaware, Inc. 8.500% due 01/31/12 195 207 Alion Science and Technology Corp. (A) 10.250% due 02/01/15 305 307 Allied Waste North America, Inc. Series B 7.125% due 05/15/16 160 160 Altria Group, Inc. 7.750% due 01/15/27 50 60 American Casino & Entertainment Properties LLC 7.850% due 02/01/12 280 286 American Electric Power Co., Inc. Series C 5.375% due 03/15/10 40 40 American Express Bank (E) Series BKNT 5.330% due 10/16/08 600 600 American Express Centurion Bank (E) Series bknt 5.320% due 05/07/08 400 400 American Express Co. 6.800% due 09/01/66 220 235 American Express Credit Corp. 5.386% due 03/02/09 600 600 5.380% due 11/09/09 (E) 200 200
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ American General Finance Corp. 4.875% due 05/15/10 425 419 Series MTNH 4.625% due 09/01/10 20 19 Series MTNI 4.625% due 05/15/09 70 69 American International Group, Inc. 5.370% due 06/16/09 (E)(p) 300 300 4.700% due 10/01/10 440 431 5.375% due 10/18/11 405 406 5.050% due 10/01/15 (N) 415 402 American RE Corp. Series B 7.450% due 12/15/26 475 544 American Real Estate Partners, LP/ American Real Estate Finance Corp. 7.125% due 02/15/13 210 208 Americo Life, Inc. (p) 7.875% due 05/01/13 100 105 Ameriprise Financial, Inc. (N) 7.518% due 06/01/66 410 448 AmerisourceBergen Corp. 5.875% due 09/15/15 15 14 Series WI 5.625% due 09/15/12 395 387 AmerUs Group Co. 5.950% due 08/15/15 275 291 Anadarko Petroleum Corp. 5.950% due 09/15/16 875 867 ANZ Capital Trust (f)(p) 4.484% due 12/31/49 450 436 Aramark Corp. (A) 8.500% due 02/01/15 120 123 8.860% due 02/01/15 (E) 125 127 Arizona Public Service Co. 5.800% due 06/30/14 330 329 6.250% due 08/01/16 300 306 ArvinMeritor, Inc. (N) 8.750% due 03/01/12 175 178 AT&T Corp. 7.300% due 11/15/11 348 376 8.000% due 11/15/31 460 571 AT&T, Inc. 5.584% due 11/14/08 (E) 1,000 1,003 5.100% due 09/15/14 110 106 Avista Capital Trust III 6.500% due 04/01/34 350 347
Fixed Income III Fund 73 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Avista Corp. 9.750% due 06/01/08 220 230 AXA Financial, Inc. 6.500% due 04/01/08 105 106 Aztar Corp. (N) 7.875% due 06/15/14 425 465 BAC Capital Trust XI 6.625% due 05/23/36 125 133 BAE Systems Holdings, Inc. (p) 6.400% due 12/15/11 1,025 1,062 Ball Corp. 6.625% due 03/15/18 80 79 Bank of America Corp. 5.875% due 02/15/09 70 71 5.375% due 06/19/09 (E) 1,800 1,801 5.378% due 11/06/09 (E)(N) 200 200 4.250% due 10/01/10 45 43 Bank of New York Co., Inc. (The) 5.125% due 11/01/11 445 441 Bear Stearns Cos., Inc. (The)(E) 5.465% due 08/21/09 600 601 BellSouth Corp. 5.474% due 08/15/08 (E) 600 600 4.200% due 09/15/09 (N) 170 165 6.550% due 06/15/34 (N) 85 87 BNP Paribas Capital Trust (f)(p) 9.003% due 12/29/49 850 945 Boardwalk Pipelines, LP 5.875% due 11/15/16 425 420 Boeing Capital Corp., Ltd. (N) 6.100% due 03/01/11 120 124 Boston Scientific Corp. 6.400% due 06/15/16 945 960 Bowater, Inc. (N) 9.000% due 08/01/09 310 327 Burlington Northern Santa Fe Corp. 6.750% due 07/15/11 20 21 6.875% due 12/01/27 60 65 California Steel Industries, Inc. 6.125% due 03/15/14 335 317 Calyon NY (E) Series YCD 5.340% due 01/16/09 700 700 Carolina Power & Light Co. 6.500% due 07/15/12 45 47 Caterpillar, Inc. 6.050% due 08/15/36 245 250 Catlin Insurance Co., Ltd. (f)(A) 7.249% due 12/31/49 505 510 CenterPoint Energy Houston Electric LLC Series J2 5.700% due 03/15/13 135 136
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ CenterPoint Energy Resources Corp. Series B 7.875% due 04/01/13 445 492 Cingular Wireless Services, Inc. 7.875% due 03/01/11 275 299 8.750% due 03/01/31 180 233 CIT Group Holdings, Inc. (E) 5.526% due 01/30/09 400 401 CIT Group, Inc. 5.524% due 08/15/08 (E) 300 301 5.515% due 12/19/08 (E) 100 100 5.460% due 06/08/09 (E)(N) 100 100 5.493% due 08/17/09 (E) 700 701 6.875% due 11/01/09 55 57 4.125% due 11/03/09 70 68 5.656% due 07/28/11 (E)(N) 400 401 Citigroup Funding, Inc. Zero coupon due 11/15/07 1,050 1,066 Zero coupon due 07/17/08 125 140 5.343% due 12/08/08 (E) 100 100 Citigroup Global Markets Holdings, Inc. (E) Series MTNM 5.390% due 03/07/08 700 701 Citigroup, Inc. 3.500% due 02/01/08 830 815 5.406% due 12/26/08 (E) 600 600 5.416% due 01/30/09 (E) 1,100 1,100 5.393% due 12/28/09 (E) 700 700 6.500% due 01/18/11 480 500 4.700% due 05/29/15 170 162 6.125% due 08/25/36 580 596 Citizens Communications Co. 9.250% due 05/15/11 190 210 Citizens Property Insurance Corp. (A) 7.125% due 02/25/19 485 569 Clorox Co. (N) 4.200% due 01/15/10 155 150 CNA Financial Corp. 6.500% due 08/15/16 275 285 Columbus Southern Power Co. Series C 5.500% due 03/01/13 75 75 Comcast Cable Communications Holdings, Inc. 9.455% due 11/15/22 250 325
74 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Comcast Cable Communications LLC 6.750% due 01/30/11 140 146 Comcast Cable Holdings LLC 9.800% due 02/01/12 300 353 7.875% due 08/01/13 695 771 Comcast Corp. 5.660% due 07/14/09 (E)(N) 725 727 5.900% due 03/15/16 185 186 5.875% due 02/15/18 100 100 6.500% due 11/15/35 205 208 6.450% due 03/15/37 310 311 Commonwealth Edison Co. 6.950% due 07/15/18 100 105 Series 105 5.400% due 12/15/11 225 223 Series 98 6.150% due 03/15/12 230 235 ConAgra Foods, Inc. 7.000% due 10/01/28 95 102 8.250% due 09/15/30 75 91 Consolidated Natural Gas Co. 6.850% due 04/15/11 360 377 Series C 6.250% due 11/01/11 80 82 Constellation Brands, Inc. Series B 8.125% due 01/15/12 115 120 Consumers Energy Co. Series F 4.000% due 05/15/10 50 48 Series H 4.800% due 02/17/09 115 114 Continental Airlines, Inc. Series 01-1 6.503% due 06/15/11 175 180 Cooper Industries, Inc. Series WI 5.250% due 11/15/12 165 162 Corrections Corp. of America 7.500% due 05/01/11 165 169 Countrywide Home Loans, Inc. (N) 3.250% due 05/21/08 215 209 COX Communications, Inc. 4.625% due 01/15/10 860 841 5.875% due 12/01/16 (p) 275 274 Credit Suisse First Boston Mortgage Securities Corp. Series 2005-CN2 Class A1S 5.540% due 11/15/19 328 328 Credit Suisse First Boston USA, Inc. 4.875% due 08/15/10 130 128 6.500% due 01/15/12 70 73 5.500% due 08/15/13 (N) 55 55
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Credit Suisse USA, Inc. 5.250% due 03/02/11 210 210 CVS Corp. 5.750% due 08/15/11 205 207 CVS Lease Pass Through (A) 6.036% due 12/10/28 314 309 DaimlerChrysler NA Holding Corp. 5.790% due 03/13/09 300 301 8.500% due 01/18/31 (N) 100 118 DaimlerChrysler North America Holding Corp. (E) 5.820% due 08/03/09 950 952 DCP Midstream, LP 6.875% due 02/01/11 20 21 Delhaize America, Inc. 9.000% due 04/15/31 135 161 Detroit Edison Co. (The) 6.125% due 10/01/10 95 97 6.350% due 10/15/32 130 135 Developers Diversified Realty Corp. 4.625% due 08/01/10 255 248 5.250% due 04/15/11 60 59 5.375% due 10/15/12 125 123 Dex Media East Finance Co. 12.125% due 11/15/12 70 77 Dominion Resources, Inc. Series 06-B (N) 6.300% due 09/30/66 390 393 Series A 5.687% due 05/15/08 235 235 5.200% due 01/15/16 520 500 Series B 6.250% due 06/30/12 60 62 Dow Chemical Co. (The) 6.000% due 10/01/12 150 154 DPL, Inc. 6.875% due 09/01/11 361 378 Dresdner Funding Trust I (p) 8.151% due 06/30/31 345 414 E*Trade Financial Corp. 8.000% due 06/15/11 510 532 Echostar DBS Corp. 6.375% due 10/01/11 195 193 6.625% due 10/01/14 95 93 El Paso Corp. 7.875% due 06/15/12 300 317 8.050% due 10/15/30 500 550
Fixed Income III Fund 75 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series * 9.625% due 05/15/12 300 340 6.700% due 02/15/27 240 240 El Paso Natural Gas Co. Series A 7.625% due 08/01/10 260 270 Eli Lilly & Co. 6.770% due 01/01/36 445 504 Embarq Corp. 7.995% due 06/01/36 75 78 Energy Transfer Partners, LP 5.950% due 02/01/15 375 376 Entergy Gulf States, Inc. 3.600% due 06/01/08 80 78 6.100% due 12/08/08 195 195 Enterprise Products Operating, LP 4.950% due 06/01/10 275 270 8.375% due 08/01/66 870 950 Series B 4.625% due 10/15/09 330 323 Erac USA Finance Co. 7.350% due 06/15/08 (p) 320 327 5.300% due 11/15/08 100 99 Farmers Exchange Capital (p) 7.050% due 07/15/28 1,070 1,107 Farmers Insurance Exchange (p) 6.000% due 08/01/14 225 221 FedEx Corp. 5.500% due 08/15/09 45 45 7.600% due 07/01/97 135 156 Financial Security Assurance Holdings, Ltd. (p) 6.400% due 12/15/66 170 170 Financing Corp. Principal Only STRIP Series 10P Zero coupon due 11/30/17 840 480 Series 15P Zero coupon due 03/07/19 90 48 Series 2P Zero coupon due 11/30/17 105 60 Series 6P Zero coupon due 08/03/18 530 292 First Union Institutional Capital II 7.850% due 01/01/27 540 562 FirstEnergy Corp. Series B 6.450% due 11/15/11 1,055 1,098 Series C 7.375% due 11/15/31 325 370 Ford Motor Co. (N) 7.450% due 07/16/31 440 357 4.250% due 12/15/36 160 182 7.700% due 05/15/97 205 155
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Ford Motor Credit Co. 9.875% due 08/10/11 1,525 1,633 7.250% due 10/25/11 195 190 8.110% due 01/13/12 (E) 315 316 8.000% due 12/15/16 (N) 230 226 9.750% due 09/15/10 455 485 FPL Group Capital, Inc. 5.625% due 09/01/11 305 308 Freescale Semiconductor, Inc. (N)(p) 10.125% due 12/15/16 250 249 FTI Consulting, Inc. (p) 7.750% due 10/01/16 80 83 General Electric Capital Corp. 5.410% due 01/05/09 (E) 500 500 5.430% due 01/20/10 (E) 1,100 1,101 5.500% due 04/28/11 400 403 5.560% due 01/08/16 100 100 Series MTN (E) 5.390% due 10/26/09 1,400 1,400 Series MTNA 4.250% due 12/01/10 (N) 55 53 5.875% due 02/15/12 60 61 5.450% due 01/15/13 (N) 755 758 General Electric Co. 5.000% due 02/01/13 45 44 General Motors Corp. (N) 8.375% due 07/15/33 530 499 Genworth Financial, Inc. 6.150% due 11/15/66 125 124 Georgia-Pacific Corp. 9.500% due 12/01/11 225 247 8.875% due 05/15/31 322 341 Glencore Nickel, Ltd. (O) 9.000% due 12/01/14 235 -- GMAC LLC 6.875% due 09/15/11 2,075 2,106 6.000% due 12/15/11 (N) 100 99 8.000% due 11/01/31 300 338 Goldman Sachs Group, Inc. 5.456% due 06/23/09 (E) 900 901 5.454% due 11/16/09 (E) 200 200 6.875% due 01/15/11 935 986 5.350% due 01/15/16 915 895 5.625% due 01/15/17 245 242 6.345% due 02/15/34 275 274
76 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series MTNB 5.480% due 07/29/08 (E) 100 100 5.464% due 11/10/08 (E) 400 401 5.690% due 07/23/09 500 503 Great West Life & Annuity Insurance Co. (p) 7.153% due 05/16/46 235 249 Greater Bay Bancorp Series B 5.250% due 03/31/08 300 299 GSAMP Trust (E) Series 2006-HE8 Class A2A 5.390% due 01/25/37 628 628 Halliburton Co. 5.500% due 10/15/10 125 125 Harrah's Operating Co., Inc. 5.500% due 07/01/10 200 197 5.625% due 06/01/15 170 148 6.500% due 06/01/16 500 455 HCA, Inc. 9.125% due 11/15/14 (p) 175 186 6.500% due 02/15/16 (N) 245 206 Health Care Property Investors, Inc. 5.950% due 09/15/11 575 577 Healthsouth Corp. (p) 10.750% due 06/15/16 375 412 Hertz Corp. 8.875% due 01/01/14 285 303 Hess Corp. 6.650% due 08/15/11 135 141 7.300% due 08/15/31 195 216 Hewlett-Packard Co. (E) 5.496% due 05/22/09 175 175 Historic TW, Inc. (N) 8.050% due 01/15/16 420 478 HJ Heinz Co. 6.428% due 12/01/08 100 102 HJ Heinz Finance Co. 6.000% due 03/15/12 50 51 Home Depot, Inc. 5.490% due 12/16/09 (E) 95 95 5.875% due 12/16/36 530 516 Host Marriott, LP Series Q 6.750% due 06/01/16 165 164 HRPT Properties Trust 5.750% due 02/15/14 280 279 HSBC Finance Corp. 5.490% due 09/15/08 (E) 1,900 1,905 5.506% due 12/05/08 (E) 100 100 5.875% due 02/01/09 210 212 5.420% due 10/21/09 (E) 300 300 4.125% due 11/16/09 105 102 8.000% due 07/15/10 45 49
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ 6.375% due 10/15/11 205 213 6.375% due 11/27/12 410 429 5.000% due 06/30/15 300 290 ICI Wilmington, Inc. 4.375% due 12/01/08 65 64 Idearc, Inc. (p) 8.000% due 11/15/16 530 539 Innophos Investments Holdings, Inc. 13.380% due 02/15/15 209 219 International Business Machines Corp. 7.125% due 12/01/96 425 480 International Lease Finance Corp. 5.750% due 06/15/11 (N) 185 188 5.625% due 09/20/13 190 190 International Steel Group, Inc. 6.500% due 04/15/14 155 157 Interpublic Group of Cos., Inc. 5.400% due 11/15/09 135 133 6.250% due 11/15/14 135 127 iStar Financial, Inc. Series B 5.125% due 04/01/11 350 343 ITT Corp. 7.400% due 11/15/25 135 155 JC Penney Co., Inc. 7.375% due 08/15/08 190 194 JC Penney Corp., Inc. 8.125% due 04/01/27 (N) 250 257 7.625% due 03/01/97 85 87 John Deere Capital Corp. (E) 5.424% due 04/15/08 400 400 JP Morgan Chase Bank Series EMTn 6.000% due 05/22/45 3,445 2,213 JP Morgan Chase Capital XVIII Series R 6.950% due 08/17/36 325 348 JP Morgan Chase Capital XX Series T 6.550% due 09/15/66 145 148 JPMorgan Chase & Co. 6.000% due 02/15/09 35 35 7.000% due 11/15/09 125 130 6.750% due 02/01/11 70 73 5.600% due 06/01/11 150 151
Fixed Income III Fund 77 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ JPMorgan Chase Bank NA Series BKNT 5.875% due 06/13/16 430 439 KBC Bank Funding Trust II (f) 6.880% due 06/30/49 600 822 KBC Bank Funding Trust III (f)(A) 9.860% due 11/29/49 165 183 Kellogg Co. Series B 6.600% due 04/01/11 870 907 Kerr-McGee Corp. 6.950% due 07/01/24 250 263 Kinder Morgan Finance Co. ULC Series WI 5.350% due 01/05/11 155 152 5.700% due 01/05/16 190 177 Kraft Foods, Inc. 4.125% due 11/12/09 175 169 5.625% due 11/01/11 1,070 1,078 6.500% due 11/01/31 55 58 Kroger Co. (The) 7.250% due 06/01/09 175 181 8.000% due 09/15/29 55 62 LaBranche & Co., Inc. 9.500% due 05/15/09 480 504 Lehman Brothers Holdings, Inc. 5.450% due 04/03/09 (E) 800 801 5.475% due 08/21/09 (E)(N) 400 400 5.594% due 07/18/11 (E)(N) 300 301 5.250% due 02/06/12 200 199 5.500% due 04/04/16 220 218 Series MTn (E) 5.475% due 11/16/09 300 300 Series MTNG (E) 5.624% due 11/10/09 300 301 Level 3 Communications, Inc. 11.500% due 03/01/10 240 259 Level 3 Financing, Inc. 12.250% due 03/15/13 200 228 Lodgenet Entertainment Corp. 9.500% due 06/15/13 230 247 Lubrizol Corp. 4.625% due 10/01/09 230 225 M&I Marshall & Ilsley Bank Series BKNT 3.800% due 02/08/08 245 241 Mandalay Resort Group 6.500% due 07/31/09 160 161 Manufacturers & Traders Trust Co. 5.585% due 12/28/20 129 127 Marsh & McLennan Cos., Inc. (N) 5.150% due 09/15/10 310 306 May Department Stores Co. (The) (N) 6.700% due 07/15/34 195 191
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ MBNA Corp. (E) Series MTNF 5.798% due 05/05/08 255 256 Medco Health Solutions, Inc. 7.250% due 08/15/13 465 494 Merrill Lynch & Co., Inc. 5.577% due 07/25/11 (E) 500 501 6.050% due 05/16/16 205 210 6.220% due 09/15/26 155 157 6.110% due 01/29/37 220 217 Series MTn (E) 5.464% due 08/14/09 400 400 Series MTNC 5.430% due 06/16/08 (E) 1,100 1,102 4.250% due 02/08/10 1,110 1,076 Metlife, Inc. 5.000% due 06/15/15 160 154 6.400% due 12/15/36 680 681 Midamerican Energy Holdings Co. Series WI 6.125% due 04/01/36 325 327 Midamerican Funding LLC 6.750% due 03/01/11 250 261 Miller Brewing Co. (p) 4.250% due 08/15/08 175 172 5.500% due 08/15/13 285 281 Mohawk Industries, Inc. (N) Series D 7.200% due 04/15/12 110 114 Monumental Global Funding II (p) 4.625% due 03/15/10 135 132 Morgan Stanley 5.390% due 11/21/08 (E) 300 300 5.375% due 10/15/15 250 246 Series GMTN 5.485% due 02/09/09 1,400 1,402 Series MTN (E) 5.450% due 01/15/10 300 300 Natexis Ambs Co. LLC (f)(p) 8.440% due 12/29/49 185 192 National Rural Utilities Cooperative Finance Corp. 5.750% due 08/28/09 85 86 Nationwide Financial Services 6.250% due 11/15/11 265 272 Nationwide Mutual Insurance Co. (p) 7.875% due 04/01/33 310 366
78 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Neiman-Marcus Group, Inc. (N) Series WI 10.375% due 10/15/15 260 291 Nelnet, Inc. 7.400% due 09/29/36 225 231 Nevada Power Co. Series L 5.875% due 01/15/15 175 174 News America Holdings, Inc. 9.250% due 02/01/13 25 29 7.750% due 12/01/45 130 148 7.900% due 12/01/95 120 135 8.250% due 10/17/96 45 53 Nextel Communications, Inc. Series E 6.875% due 10/31/13 330 335 Nisource Finance Corp. 5.940% due 11/23/09 (E) 120 120 7.875% due 11/15/10 345 372 Norfolk Southern Corp. 7.050% due 05/01/37 115 130 7.900% due 05/15/97 800 972 6.000% due 03/15/05 315 293 North Front Pass-Through Trust (p) 5.810% due 12/15/24 500 489 Occidental Petroleum Corp. (N) 9.250% due 08/01/19 135 176 Ohio Power Co. Series F (N) 5.500% due 02/15/13 25 25 Series K 6.000% due 06/01/16 170 174 ONEOK Partners, LP 6.650% due 10/01/36 175 180 Oneok, Inc. 5.510% due 02/16/08 305 305 Oracle Corp. and Ozark Holding, Inc. (E) Series WI 5.603% due 01/13/09 500 501 Pacific Gas & Electric Co. 4.200% due 03/01/11 275 263 6.050% due 03/01/34 115 115 PartnerRe Finance II 6.440% due 12/01/66 75 75 Peabody Energy Corp. (N) 7.875% due 11/01/26 200 210 Pemex Project Funding Master Trust Series WI 6.625% due 06/15/35 340 338 Pepco Holdings, Inc. 5.994% due 06/01/10 295 295 Phoenix Life Insurance Co. (p) 7.150% due 12/15/34 275 289
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Pilgrim's Pride Corp. 9.625% due 09/15/11 55 57 7.625% due 05/01/15 135 134 Plains All American Pipeline, LP/PAA Finance Corp. Series WI 6.700% due 05/15/36 175 179 Platinum Underwriters Finance, Inc. Series B 7.500% due 06/01/17 170 178 Popular North America Capital Trust I 6.564% due 09/15/34 210 207 Popular North America, Inc. 5.760% due 04/06/09 295 296 Series MTNE 3.875% due 10/01/08 500 487 Progress Energy, Inc. 7.100% due 03/01/11 92 98 5.625% due 01/15/16 90 90 7.000% due 10/30/31 195 216 PSEG Energy Holdings LLC 8.625% due 02/15/08 43 44 Qwest Corp. 7.875% due 09/01/11 475 505 7.625% due 06/15/15 300 321 Rabobank Capital Funding II (f)(p) 5.260% due 12/31/49 315 307 RBS Capital Trust I (f) 4.709% due 12/29/49 30 28 RBS Capital Trust III (f) 5.512% due 09/29/49 500 491 RBS Global, Inc. and Rexnord Corp. 9.500% due 08/01/14 270 278 Reckson Operating Partnership, LP 7.750% due 03/15/09 75 78 5.150% due 01/15/11 135 132 Reinsurance Group of America, Inc. 6.750% due 12/15/65 100 100 Rental Services Corp. (p) 9.500% due 12/01/14 270 282 Residential Capital LLC 5.850% due 06/09/08 (E) 335 334 6.125% due 11/21/08 320 321
Fixed Income III Fund 79 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ 7.190% due 04/17/09 455 457 6.375% due 06/30/10 1,057 1,066 6.000% due 02/22/11 455 453 5.125% due 05/17/12 210 273 6.500% due 04/17/13 450 454 Series WI 6.875% due 06/30/15 755 775 RH Donnelley, Inc. 10.875% due 12/15/12 555 604 Safeco Capital Trust I 8.072% due 07/15/37 275 287 Safeway, Inc. 5.800% due 08/15/12 65 65 7.250% due 02/01/31 (N) 15 16 Sara Lee Corp. 6.125% due 11/01/32 210 190 SB Treasury Co. LLC (f)(p) 9.400% due 12/29/49 650 681 SBC Communications, Inc. (N) 6.150% due 09/15/34 305 300 Sempra Energy (E) 5.845% due 05/21/08 290 290 Simon Property Group, LP 5.600% due 09/01/11 300 302 SLM Corp. 4.000% due 01/15/10 175 169 Series MTNA 5.517% due 07/27/09 2,000 2,003 Southern California Edison Co. 7.625% due 01/15/10 90 95 Sovereign Capital Trust VI 7.908% due 06/13/36 270 301 Sprint Capital Corp. 7.625% due 01/30/11 1,050 1,121 6.875% due 11/15/28 180 179 8.750% due 03/15/32 320 380 Sprint Nextel Corp. 6.000% due 12/01/16 350 340 Stingray Pass-Through Trust (p) 5.902% due 01/12/15 700 679 Suncom Wireless, Inc. 8.500% due 06/01/13 465 474 Sungard Data Systems, Inc. (N) 10.250% due 08/15/15 356 383 Swiss Re Capital I, LP (f)(p) 6.854% due 05/29/49 400 419 Symetra Financial Corp. (p) 6.125% due 04/01/16 300 302 TCI Communications, Inc. 7.875% due 02/15/26 80 92 TECO Energy, Inc. 7.200% due 05/01/11 235 246 Texas Eastern Transmission, LP 7.000% due 07/15/32 95 105
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Time Warner Entertainment Co., LP Series * 8.375% due 03/15/23 160 188 Time Warner, Inc. 5.606% due 11/13/09 (E) 390 390 5.500% due 11/15/11 295 294 5.875% due 11/15/16 150 150 7.700% due 05/01/32 125 141 6.500% due 11/15/36 125 124 Travelport, Ltd. (N)(A) 11.875% due 09/01/16 645 695 Trump Entertainment Resorts, Inc. (N) 8.500% due 06/01/15 465 460 Twin Reefs Pass-Through Trust (E)(f)(p) 6.320% due 12/10/49 300 301 TXU Electric Delivery Co. 7.000% due 09/01/22 390 417 TXU Energy Co. LLC 7.000% due 03/15/13 120 126 Unicredito Italiano NY (E) Series YCD 5.358% due 05/06/08 1,100 1,100 5.370% due 05/29/08 500 499 Union Pacific Corp. 6.625% due 02/01/08 90 91 3.625% due 06/01/10 120 113 6.125% due 01/15/12 195 200 Union Planters Corp. 7.750% due 03/01/11 125 136 UnitedHealth Group, Inc. 5.250% due 03/15/11 185 184 US Oncology, Inc. 9.000% due 08/15/12 180 191 USB Capital IX 6.189% due 04/15/49 410 418 Valero Logistics Operations, LP 6.050% due 03/15/13 410 413 VeraSun Energy Corp. 9.875% due 12/15/12 225 235 Verizon Global Funding Corp. 7.250% due 12/01/10 300 319 5.850% due 09/15/35 425 402 Verizon, Inc. 6.500% due 09/15/11 40 41
80 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Viacom, Inc. 5.741% due 06/16/09 (E) 240 241 5.750% due 04/30/11 (N) 345 345 6.875% due 04/30/36 175 174 Visteon Corp. (N) 8.250% due 08/01/10 180 180 Wachovia Bank NA (E) Series BKNT 5.356% due 06/27/08 400 400 Series DPNT 5.406% due 03/23/09 700 700 Wachovia Capital Trust III 5.800% due 03/15/42 1,385 1,395 Wachovia Corp. 5.410% due 12/01/09 (E) 400 400 5.625% due 10/15/16 (N) 100 100 Wal-Mart Stores, Inc. (E) 5.265% due 06/16/08 1,000 999 Washington Mutual Preferred Funding II (f)(p) 6.665% due 12/31/49 300 304 Washington Mutual, Inc. 8.250% due 04/01/10 250 269 WellPoint, Inc. 4.250% due 12/15/09 226 219 5.850% due 01/15/36 235 228 Wells Fargo & Co. (N) 4.950% due 10/16/13 155 150 Wells Fargo Bank NA 5.750% due 05/16/16 190 193 Wells Fargo Mortgage Backed Securities Trust Series 2006-AR6 Class 7A1 5.110% due 03/25/36 1,024 1,002 West Corp. (p) 9.500% due 10/15/14 375 380 Westpac Banking Corp. (E) Series DPNT 5.280% due 06/06/08 300 300 Weyerhaeuser Co. (N) 7.375% due 03/15/32 250 266 Willis North America, Inc. 5.125% due 07/15/10 230 223 5.625% due 07/15/15 145 139 Wimar Opco LLC (A) 9.625% due 12/15/14 345 343 Windstream Corp. Series WI 8.125% due 08/01/13 200 215 8.625% due 08/01/16 125 136 Wyeth 6.950% due 03/15/11 925 978 5.500% due 02/01/14 290 289
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Xcel Energy, Inc. 6.500% due 07/01/36 130 136 Xlliac Global Funding 4.800% due 08/10/10 240 235 Yum! Brands, Inc. 8.875% due 04/15/11 110 123 Zurich Capital Trust I (p) 8.376% due 06/01/37 420 440 ------------ 154,990 ------------ International Debt - 5.2% Abbey National PLC (f) 6.700% due 06/29/49 275 279 Abu Dhabi National Energy Co. (p) 5.875% due 10/27/16 290 290 6.500% due 10/27/36 850 863 America Movil SA de CV 5.500% due 03/01/14 200 195 Amvescap PLC 4.500% due 12/15/09 395 384 ANZ National International, Ltd. (E)(p) 5.415% due 08/07/09 1,300 1,299 Arlington Street CDO, Ltd. (p) Series 2000-1A Class A2 7.660% due 06/10/12 840 837 Aspen Insurance Holdings, Ltd. 6.000% due 08/15/14 75 74 AXA SA 8.600% due 12/15/30 85 109 6.379% due 12/14/49 (f)(p) 125 122 6.463% due 12/31/49 (f)(p) 125 120 Banco Mercantil del Norte SA (A) 6.862% due 10/13/21 420 424 Barclays Bank PLC (f)(p) 7.375% due 06/29/49 320 344 BNP Paribas (f)(N)(p) 5.186% due 06/29/49 600 573 Bowater Canada Finance Corp. (N) 7.950% due 11/15/11 365 366 Brascan Corp. (N) 7.125% due 06/15/12 225 240 British Telecommunications PLC 8.625% due 12/15/10 65 72 9.125% due 12/15/30 490 671 C10 Capital SPV, Ltd. (f)(p) 6.722% due 12/01/49 300 298
Fixed Income III Fund 81 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Canadian Natural Resources, Ltd. 5.850% due 02/01/35 25 23 6.500% due 02/15/37 200 200 Canadian Oil Sands, Ltd. (p) 4.800% due 08/10/09 150 147 Catalyst Paper Corp. Series D 8.625% due 06/15/11 1,080 1,110 China Development Bank 5.000% due 10/15/15 100 97 CIT Group Funding Co. of Canada (N) 5.600% due 11/02/11 185 186 Conoco Funding Co. 6.350% due 10/15/11 765 797 Cosan Finance, Ltd. (A) 7.000% due 02/01/17 490 480 Deutsche Telekom International Finance BV 5.375% due 03/23/11 125 124 8.250% due 06/15/30 325 397 DNB Nor Bank ASA (E)(p) 5.430% due 10/13/09 2,400 2,399 Egypt Government AID Bonds 4.450% due 09/15/15 695 662 Endurance Specialty Holdings, Ltd. 6.150% due 10/15/15 175 173 Export-Import Bank of China (p) 4.875% due 07/21/15 495 474 Export-Import Bank of Korea 4.125% due 02/10/09 (p) 160 156 5.125% due 02/14/11 225 223 Falconbridge, Ltd. 7.250% due 07/15/12 75 81 6.000% due 10/15/15 420 428 FBG Finance, Ltd. (p) 5.125% due 06/15/15 190 179 Federative Republic of Brazil 6.000% due 01/17/17 975 953 France Telecom SA 8.500% due 03/01/31 185 242 Galaxy Entertainment Finance Co., Ltd. 9.875% due 12/15/12 340 368 Gaz Capital for Gazprom (p) 6.212% due 11/22/16 300 296 HBOS PLC (f)(N)(p) 5.920% due 09/29/49 300 293 HBOS Treasury Services PLC (E)(p) Series Mtn 5.420% due 07/17/09 600 600 HSBC Holdings PLC 6.500% due 05/02/36 315 336 Inco, Ltd. 5.700% due 10/15/15 375 369
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Intelsat Bermuda, Ltd. (p) 11.250% due 06/15/16 420 475 Intelsat Subsidiary Holding Co., Ltd. (E) 10.252% due 01/15/12 335 338 ISA Capital do Brasil SA (A) 7.875% due 01/30/12 104 104 Ispat Inland ULC 9.750% due 04/01/14 934 1,042 Korea Electric Power Corp. (p) 5.125% due 04/23/34 85 83 LG Electronics, Inc. (p) 5.000% due 06/17/10 130 127 Majapahit Holding BV (p) 7.250% due 10/17/11 135 138 Mantis Reef, Ltd. (p) 4.692% due 11/14/08 200 197 Mizuho Financial Group Cayman, Ltd. (p) 5.790% due 04/15/14 280 280 Montpelier Re Holdings, Ltd. 6.125% due 08/15/13 240 233 MUFG Capital Finance 1, Ltd. (f) 6.346% due 07/25/49 180 182 National Australia Bank, Ltd. (E)(p) 5.393% due 09/11/09 400 400 Nationwide Building Society (p) 4.250% due 02/01/10 255 246 Nippon Life Insurance (p) 4.875% due 08/09/10 295 288 Norske Skogindustrier ASA (p) 7.125% due 10/15/33 555 522 Peru Enhanced Pass-Through Finance, Ltd. (p) Zero Coupon due 05/31/25 785 285 Petroleum Export, Ltd. (p) 5.265% due 06/15/11 89 86 Province of Quebec Canada (N) Series PJ 6.125% due 01/22/11 960 991 Ras Laffan Liquefied Natural Gas Co., Ltd. II (p) 5.298% due 09/30/20 615 582 Ras Laffan Liquefied Natural Gas Co., Ltd. III 5.838% due 09/30/27 (p) 660 624 5.832% due 09/30/16 380 378
82 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Resona Bank, Ltd. (f)(p) 5.850% due 09/29/49 930 904 Resona Preferred Global Securities Cayman, Ltd. (f)(p) 7.191% due 12/29/49 900 941 Rogers Wireless, Inc. 6.375% due 03/01/14 250 250 Royal Bank of Scotland Group PLC (f) Series 1 9.118% due 03/31/49 1,350 1,487 Royal Bank of Scotland PLC (E) 5.760% due 07/06/12 1,300 1,301 Russia Government International Bond (p) 5.000% due 03/31/30 765 849 Salomon Brothers AG for OAO Siberian Oil Co. Series REGS 10.750% due 01/15/09 425 462 Santander Financial Issuances 6.375% due 02/15/11 180 186 Sanwa Finance Aruba AEC 8.350% due 07/15/09 355 377 Sappi Papier Holding AG (p) 6.750% due 06/15/12 375 375 7.500% due 06/15/32 310 294 Seagate Technology HDD Holdings 6.800% due 10/01/16 395 394 Secunda International, Ltd. (E) 13.360% due 09/01/12 220 229 Shimao Property Holdings, Ltd. (p) 8.000% due 12/01/16 285 281 Shinsei Finance II (f)(p) 7.160% due 07/25/49 175 176 Siemens Financieringsmaatschappij NV (p) 5.424% due 08/14/09 (E) 500 500 6.125% due 08/17/26 285 290 SMFG Preferred Capital USD 1, Ltd. (f)(p) 6.078% due 01/29/49 200 197 Stora Enso OYJ 7.250% due 04/15/36 245 255 Sumitomo Mitsui Banking Corp. 5.625% due 07/29/49 160 156 Systems 2001 AT LLC (p) 7.156% due 12/15/11 133 137 6.664% due 09/15/13 124 129 Telecom Italia Capital SA 4.000% due 01/15/10 610 584 4.875% due 10/01/10 325 316 5.970% due 07/18/11 (E) 1,060 1,061 5.250% due 10/01/15 435 404 7.200% due 07/18/36 400 409
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Telefonica Emisiones SAU 5.665% due 06/19/09 (E) 770 771 5.984% due 06/20/11 (N) 175 178 6.421% due 06/20/16 120 124 7.045% due 06/20/36 105 113 Telefonica Europe BV 7.750% due 09/15/10 665 713 8.250% due 09/15/30 215 259 Telefonos de Mexico SA de CV 4.500% due 11/19/08 490 481 TELUS Corp. 8.000% due 06/01/11 640 696 Transocean, Inc. (E) 5.591% due 09/05/08 400 400 Tyco International Group SA 6.750% due 02/15/11 855 903 UFJ Finance Aruba AEC 6.750% due 07/15/13 120 127 Unicredit Luxembourg Finance SA (E)(p) 5.410% due 10/24/08 375 375 Vale Overseas, Ltd. 6.250% due 01/11/16 200 201 6.250% due 01/23/17 (N) 640 641 6.875% due 11/21/36 370 377 Vedanta Resources PLC (p) 6.625% due 02/22/10 410 404 Vitro SA de CV (A) 8.625% due 02/01/12 135 136 9.125% due 02/01/17 270 273 Vodafone Group PLC 5.750% due 03/15/16 165 164 VTB Capital SA (E)(p) 5.970% due 08/01/08 565 566 Westfield Capital Corp., Ltd./WT Finance Aust Pty Ltd/WEA Finance LLC (p) 5.125% due 11/15/14 225 217 Westfield Group (p) 5.400% due 10/01/12 276 275 Xstrata Finance Canada, Ltd. (p) 5.500% due 11/16/11 115 115 5.800% due 11/15/16 115 114 Xstrata Finance Dubai, Ltd. (E)(p) 5.725% due 11/13/09 260 260 ------------ 48,781 ------------
Fixed Income III Fund 83 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Loan Agreements - 1.0% Avis Budget Holdings, Term Loan 6.610% due 04/19/12 153 153 AWAS, Second Lien Term Loan 11.375% due 03/21/13 181 183 Delphi Corp. 8.125% due 12/31/07 100 100 Ford Motor Co. 8.360% due 12/15/13 1,100 1,115 General Motors Corp. 7.745% due 11/01/13 300 304 7.745% due 11/29/13 301 305 Georgia-Pacific Corp., First Lien Term Loan 7.113% due 12/20/12 297 300 Georgia-Pacific Corp., Term Loan B 7.113% due 12/20/12 511 516 HCA, Inc. Term Loan B 8.114% due 12/30/13 600 605 Healthsouth Corp., Term Loan B 8.610% due 03/10/13 597 603 Idearc, Inc., Term Loan B 7.330% due 11/17/14 300 302 Lyondell Chemical Co., Term Loan 7.121% due 08/16/13 299 302 Starbound Reinsurance, Ltd., Term B II Loan 7.400% due 03/31/08 3,500 3,500 Talecris Biotherapeutics, Inc., Second Lien Term Loan 13.500% due 12/06/14 300 305 United Airlines, Inc., Term Loan 11.000% due 02/01/12 50 50 United Airlines, Inc., Term Loan B 9.120% due 02/01/12 348 351 Visteon Corp. 8.380% due 06/13/13 300 301 Windstream Corp., Term Loan B 7.110% due 07/17/13 326 329 ------------ 9,624 ------------ Mortgage-Backed Securities - 40.8% Adjustable Rate Mortgage Trust Series 2005-3 Class 8A2 5.560% due 07/25/35 491 492 American Home Mortgage Assets (E) Series 2006-2 Class 2A2 5.550% due 09/25/46 745 747 Series 2006-4 Class 1A11 5.540% due 08/30/36 962 964 Series 2007-1 Class A1 5.630% due 02/25/47 2,000 2,000
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ American Home Mortgage Investment Trust (E) Series 2004-1 Class 1A 5.670% due 04/25/44 135 136 Series 2004-4 Class 4A 4.390% due 02/25/45 267 263 Banc of America Commercial Mortgage, Inc. Series 2004-3 Class A3 4.875% due 06/10/39 710 700 Series 2004-4 Class A3 4.128% due 07/10/42 455 441 Series 2005-2 Class A4 4.783% due 07/10/43 730 710 Series 2005-3 Class A2 4.501% due 07/10/43 360 350 Series 2005-5 Class A4 5.115% due 10/10/45 1,500 1,459 Series 2006-3 Class A4 5.889% due 07/10/44 920 943 Series 2006-4 Class A4 5.634% due 07/10/46 1,285 1,295 Banc of America Funding Corp. Series 2005-D Class A1 (E) 4.114% due 05/25/35 315 307 Series 2005-F Class 1A2 (E) 5.670% due 09/20/35 178 179 Series 2005-F Class 2A1 5.225% due 09/20/35 565 567 Series 2006-3 Class 5A8 5.500% due 03/25/36 930 917 Series 2006-A Class 3A2 5.917% due 02/20/36 389 390 Series 2006-A Class 4A1 5.567% due 02/20/36 909 904 Banc of America Mortgage Securities, Inc. Series 2003-9 Class 1A12 (E) 5.770% due 12/25/33 1,202 1,206 Series 2003-D Class 1A2 (E) 6.114% due 05/25/33 3 3 Series 2004-1 Class 5A1 6.500% due 09/25/33 19 19 Series 2004-11 Class 2A1 5.750% due 01/25/35 773 761 Series 2004-D Class 1A1 (E) 3.518% due 05/25/34 423 421 Series 2005-9 Class 2A1 4.750% due 10/25/20 396 387
84 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2005-L Class 3A1 5.453% due 01/25/36 447 443 Series 2006-2 Class A15 6.000% due 07/25/36 775 781 Bank of America Alternative Loan Trust Series 2003-10 Class 2A1 6.000% due 12/25/33 201 201 Series 2003-10 Class 2A2 (E) 5.820% due 12/25/33 449 451 Series 2003-2 Class CB2 5.820% due 04/25/33 193 194 Series 2004-10 Class 1CB1 6.000% due 11/25/34 122 122 Series 2004-11 Class 1CB1 6.000% due 12/25/34 143 144 Series 2004-2 Class 1A1 6.000% due 03/25/34 116 116 Series 2005-3 Class 2A1 5.500% due 04/25/20 192 191 Series 2005-5 Class 2CB1 6.000% due 06/25/35 262 262 Series 2005-6 Class 7A1 5.500% due 07/25/20 214 212 Series 2005-9 Class 5A1 5.500% due 10/25/20 367 364 Series 2006-5 Class CB17 6.000% due 06/25/36 579 582 Bayview Financial Acquisition Trust (E) Series 2006-C Class 2A1 5.430% due 11/28/36 564 564 Bear Stearns Adjustable Rate Mortgage Trust (E) Series 2005-10 Class A1 4.750% due 10/25/35 1,339 1,323 Bear Stearns Alt-A Trust Series 2005-4 Class 23A1 5.390% due 05/25/35 478 478 Series 2006-3 Class 33A1 6.185% due 05/25/36 521 526 Series 2006-3 Class 34A1 6.185% due 05/25/36 216 218 Series 2006-4 Class 23A5 6.239% due 08/25/36 429 434 Bear Stearns Asset Backed Securities, Inc. Series 2005-AC8 Class A5 5.500% due 11/25/35 359 358 Bear Stearns Commercial Mortgage Securities Series 2004-ESA Class E (p) 5.064% due 05/14/16 265 263
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2005-PW1 Class A4 5.405% due 12/11/40 1,500 1,489 Bear Stearns Mortgage Funding Trust 5.470% due 02/25/37 900 900 Series 2006-AR1 Class 1A2 (E) 5.570% due 07/25/36 616 615 Series 2006-AR2 Class 1A1 (E) 5.520% due 09/25/36 1,560 1,559 Series 2006-AR2 Class 2A1 (E) 5.550% due 10/25/36 984 984 Series 2006-AR3 Class 1A1 (E) 5.500% due 03/25/36 670 669 Series 2006-AR4 Class A1 (E) 5.530% due 04/25/36 850 850 Series 2006-AR5 Class 1A1 (E) 5.480% due 12/25/36 675 675 Chase Mortgage Finance Corp. Series 2003-S8 Class A1 4.500% due 09/25/18 438 418 Series 2003-S8 Class A2 5.000% due 09/25/18 634 623 Series 2006-S4 Class A3 6.000% due 12/25/36 685 689 Series 2006-S4 Class A4 6.000% due 12/25/36 360 361 Citigroup Mortgage Loan Trust, Inc. Series 2005-11 Class A2A 4.700% due 12/25/35 89 87 Series 2006-WF1 Class A2F 5.657% due 03/01/36 610 600 Series 2007-AR1 Class A1 (E) 5.430% due 01/25/37 575 575 Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2005-CD1 Class A4 5.226% due 07/15/44 1,500 1,481 Series 2006-CD3 Class A5 5.617% due 10/15/48 455 457 Citimortgage Alternative Loan Trust Series 2006-A3 Class 1A5 6.000% due 07/25/36 405 406 Commercial Mortgage Pass Through Certificates Series 2001-J1A Class A2 (p) 6.457% due 02/16/34 218 225 Series 2006-C7 Class A2 5.690% due 06/10/46 235 237
Fixed Income III Fund 85 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Countrywide Alternative Loan Trust Series 2004-28C Class 6A1 6.000% due 01/25/35 248 248 Series 2004-J7 Class 1A2 4.673% due 08/25/34 97 96 Series 2004-J8 Class 1A1 7.000% due 09/25/34 223 227 Series 2005-51 Class 2A1 (E) 5.620% due 11/20/35 702 704 Series 2005-51 Class 2A2A (E) 5.640% due 11/20/35 313 313 Series 2005-51 Class 4A1 (E) 5.640% due 11/20/35 777 780 Series 2005-56 Class 2A2 (E) 6.798% due 11/25/35 595 596 Series 2005-58 Class A2 (E) 5.710% due 12/20/35 497 499 Series 2005-59 Class 1A2B (E) 5.580% due 11/20/35 325 325 Series 2005-63 Class 3A1 5.896% due 11/25/35 425 424 Series 2005-76 Class 2A2 (E) 6.458% due 02/25/36 714 721 Series 2005-81 Class X1 Interest Only STRIP 1.736% due 02/25/37 2,311 125 Series 2005-J13 Class 2A3 5.500% due 11/25/35 304 302 Series 2005-J8 Class 1A3 5.500% due 07/25/35 550 547 Series 2006-2CB Class A3 5.500% due 03/25/36 319 319 Series 2006-43C Class 1A7 6.000% due 02/25/37 964 960 Series 2006-9T1 Class A7 6.000% due 05/25/36 311 313 Series 2006-J2 Class A3 6.000% due 04/25/36 463 464 Series 2006-OA1 Class 1XP Interest Only STRIP 1.368% due 10/25/36 6,499 337 Series 2006-OA1 Class 2X Interest Only STRIP 1.790% due 03/20/46 3,305 154 Series 2006-OA1 Class 4A1 (E) 5.540% due 08/25/46 1,246 1,247 Series 2006-OA1 Class A1 (E) 5.500% due 02/20/47 1,284 1,282 Series 2006-OA1 Class A1A (E) 5.370% due 09/25/46 582 582 Series 2006-OA2 Class A2A 5.470% due 05/20/46 427 427
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2006-OA2 Class CP (p) Interest Only STRIP 2.079% due 09/25/35 8,400 456 Series 2006-OA2 Class X Interest Only STRIP Zero coupon due 03/20/47 6,333 357 Series 2006-OA6 Class 1A3 5.590% due 04/25/36 497 499 Countrywide Home Loan Mortgage Pass Through Trust Series 2004-16 Class 1A1 5.720% due 09/25/34 612 615 Series 2005-11 Class 5A1 (E) 5.620% due 03/25/35 100 100 Series 2005-23 Class A1 5.500% due 11/25/35 1,070 1,044 Series 2005-29 Class A1 5.750% due 12/25/35 688 678 Series 2005-3 Class 1A3 (E) 5.590% due 04/25/35 172 172 Series 2005-HYB Class 3A2A 5.250% due 02/20/36 170 168 Series 2006-1 Class A2 6.000% due 03/25/36 334 333 Series 2006-1 Class A3 6.000% due 03/25/36 124 123 Series 2006-HYB Class 3A1A 6.113% due 05/20/36 482 492 Series 2006-OA5 Class 2A1 (E) 5.520% due 04/25/46 1,364 1,362 Credit Suisse First Boston Mortgage Securities Corp. Series 2001-SPG Class A2 6.515% due 08/13/18 100 105 Series 2003-29 Class 5A1 7.000% due 12/25/33 46 47 Series 2004-1 Class 3A1 7.000% due 02/25/34 20 20 Series 2004-C1 Class A3 4.321% due 01/15/37 675 649 Credit Suisse Mortgage Capital Certificates Series 2006-C1 Class AAB 5.556% due 02/15/39 130 130 Crown Castle Towers LLC (p) Series 2005-1A Class C 5.074% due 06/15/35 150 147 Series 2006-1A Class B 5.362% due 11/15/36 375 372
86 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ CS First Boston Mortgage Securities Corp. Series 1998-C2 Class A2 6.300% due 11/15/30 234 237 Deutsche ALT-A Securities, Inc. Alternate Loan Trust Series 2005-AR1 Class 2A3 5.010% due 08/25/35 905 910 DLJ Commercial Mortgage Corp. Series 1998-CF1 Class A1B 6.410% due 02/18/31 498 501 Series 1999-CG1 Class S Interest Only STRIP 0.814% due 03/10/32 6,099 108 Downey Savings & Loan Association Mortgage Loan Trust Series 2004-AR3 Class 1A1B (E) 7.141% due 07/19/44 204 206 Series 2006-AR1 Class 2A1A 5.767% due 04/19/47 762 763 Series 2006-AR2 Class 2A1A (E) 5.520% due 11/19/37 749 750 Fannie Mae 5.363% due 2012 506 503 6.000% due 2016 27 27 5.000% due 2017 11 11 5.500% due 2017 45 45 6.000% due 2017 57 58 6.500% due 2017 115 117 4.000% due 2018 1,844 1,729 4.500% due 2018 3,809 3,663 5.000% due 2018 1,418 1,390 10.000% due 2018 43 47 4.500% due 2019 383 369 4.500% due 2020 740 711 5.000% due 2020 1,000 979 5.500% due 2020 173 172 6.500% due 2024 1,085 1,107 10.000% due 2024 38 41 5.500% due 2025 6 6 6.599% due 2025 25 25 6.992% due 2026 (E) 192 195 7.500% due 2027 9 9 7.000% due 2028 29 30 5.500% due 2029 580 573 6.500% due 2029 3 3 7.000% due 2029 92 95 7.500% due 2029 80 83 8.000% due 2029 7 7 8.500% due 2029 3 3 7.500% due 2030 71 73 8.500% due 2030 266 286 9.500% due 2030 80 87
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ 7.000% due 2031 490 504 7.500% due 2031 216 225 8.000% due 2031 298 314 8.500% due 2031 238 256 6.000% due 2032 963 970 6.500% due 2032 3 3 7.000% due 2032 536 551 7.500% due 2032 201 210 8.000% due 2032 31 33 3.905% due 2033 630 622 4.673% due 2033 (E) 699 692 4.681% due 2033 365 367 5.000% due 2033 1,216 1,173 5.500% due 2033 2,433 2,399 6.000% due 2033 311 313 7.000% due 2033 1,126 1,158 5.000% due 2034 1,457 1,403 5.500% due 2034 13,771 13,575 6.000% due 2034 579 583 7.000% due 2034 335 344 7.500% due 2034 117 121 4.456% due 2035 (E) 1,378 1,367 4.834% due 2035 (E) 1,447 1,436 5.000% due 2035 1,563 1,504 5.500% due 2035 13,426 13,215 6.000% due 2035 546 548 7.000% due 2035 1,557 1,597 7.500% due 2035 724 754 5.000% due 2036 9,905 9,512 5.500% due 2036 3,522 3,466 6.000% due 2036 9,708 9,738 6.500% due 2036 285 290 7.000% due 2036 80 82 7.500% due 2036 2,272 2,358 Series 1992-10 Class ZD 8.000% due 11/25/21 381 384 Series 1996-46 Class ZA 7.500% due 11/25/26 80 83 Series 1997-281 Class 2 Interest Only STRIP 9.000% due 11/01/26 37 10 Series 1999-56 Class Z 7.000% due 12/18/29 296 306 Series 2000-306 Class IO Interest Only STRIP 8.000% due 05/01/30 39 10
Fixed Income III Fund 87 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2001-317 Class 2 Interest Only STRIP 8.000% due 08/01/31 41 10 Series 2002-320 Class 2 Interest Only STRIP 7.000% due 03/01/32 19 5 Series 2002-50 Class SC (E) Interest Only STRIP 2.780% due 2029 8 -- 5.958% due 06/01/43 (E) 441 443 Series 2003-122 Class AJ 4.500% due 02/25/28 138 134 Series 2003-16 Class NI Interest Only STRIP 5.000% due 02/25/15 182 6 Series 2003-25 Class IK 7.000% due 04/25/33 94 22 Series 2003-32 Class FH 5.720% due 11/25/22 671 677 Series 2003-32 Class UI Interest Only STRIP 6.000% due 05/25/33 134 32 Series 2003-33 Class IA 6.500% due 05/25/33 811 186 Series 2003-337 Class 1 Zero coupon due 07/01/33 724 525 Series 2003-343 Class 6 5.000% due 10/01/33 719 161 Series 2003-35 Class IU Interest Only STRIP 6.000% due 05/25/33 168 39 Series 2003-35 Class UI Interest Only STRIP 6.500% due 05/25/33 165 38 Series 2003-64 Class JI Interest Only STRIP 6.000% due 07/25/33 159 37 Series 2003-78 Class FI 5.720% due 01/25/33 659 662 Series 2003-82 Class IA Interest Only STRIP 6.000% due 2032 135 19 Series 2003-82 Class WI Interest Only STRIP 6.000% due 08/25/32 28 4 Series 2004-21 Class FL 5.670% due 11/25/32 332 333 Series 2005-110 Class MB 5.500% due 09/25/35 625 626 Series 2006-28 Class 1P Interest Only STRIP 1.202% due 03/25/36 4,089 96
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2006-369 Class 8 Interest Only STRIP 5.500% due 04/01/36 581 142 15 Year TBA (I) 4.500% 630 605 5.000% 5,400 5,282 5.500% 1,350 1,344 6.000% 2,240 2,265 30 Year TBA (I) 4.500% 1,325 1,234 5.000% 6,390 6,130 5.500% 35,370 34,783 6.000% 12,915 12,960 6.500% 6,800 6,913 7.000% 3,265 3,345 Fannie Mae Grantor Trust Series 2001-T8 Class A2 9.500% due 07/25/41 69 74 Fannie Mae REMICS Series 2005-36 Class AI Interest Only STRIP 5.500% due 10/25/26 921 73 Series 2006-118 Class A2 (E) 5.380% due 12/25/36 538 537 Series 2006-5 Class 3A2 4.677% due 05/25/35 100 98 Fannie Mae Whole Loan Series 2003-W17 Class 1A6 5.310% due 08/25/33 1,700 1,678 Series 2004-W11 Class 1A2 6.500% due 05/25/44 202 205 Series 2004-W9 Class 2A1 6.500% due 02/25/44 107 109 Federal Home Loan Mortgage Corp. Structured Pass Through Securities Series 2003-58 Class 2A 6.500% due 09/25/43 101 103 Series 2005-63 Class 1A1 5.958% due 02/25/45 58 58 First Horizon Alternative Mortgage Securities Series 2006-AA5 Class A2 (E) 6.626% due 09/25/36 427 435 Series 2006-FA3 Class A6 6.000% due 07/25/36 515 519 First Horizon Asset Securities, Inc. Series 2003-5 Class 1A17 8.000% due 07/25/33 52 55
88 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2004-AR5 Class 4A1 (E) 5.682% due 10/25/34 134 133 Series 2005-AR5 Class 3A1 5.527% due 10/25/35 203 203 First Union-Lehman Brothers-Bank of America Series 1998-C2 Class A2 6.560% due 11/18/35 26 26 Freddie Mac 5.570% due 2011 (AE)(f) 14 349 4.000% due 2019 3,710 3,471 4.500% due 2019 172 164 5.000% due 2019 1,536 1,504 4.235% due 2034 (E) 87 88 4.642% due 2034 418 421 5.951% due 2036 (E) 730 733 5.971% due 2036 (E) 355 359 Series 1991-103 Class Z 9.000% due 02/15/21 58 58 Series 1994-173 Class Z 7.000% due 05/15/24 112 117 Series 1999-212 Class SG (E) Interest Only STRIP 1.625% due 06/17/27 452 17 Series 2001-229 Class KF (E) 5.570% due 07/25/22 328 320 Series 2001-232 Class ZQ 6.500% due 06/15/31 517 535 4.500% due 2018 791 760 Series 2003-259 Class IQ Interest Only STRIP 5.000% due 06/15/17 299 35 Series 2003-261 Class UI Interest Only STRIP 6.500% due 05/15/33 112 26 Series 2003-262 Class AB 2.900% due 11/15/14 675 653 Series 2003-264 Class IM Interest Only STRIP 7.000% due 07/15/33 141 34 Series 2003-266 Class MA 4.500% due 10/15/31 263 258 Series 2004-276 Class IP Interest Only STRIP 5.500% due 07/15/23 551 24 Series 2004-277 Class UF 5.620% due 06/15/33 831 832 Series 2004-281 Class DF 5.770% due 06/15/23 248 250 Series 2004-287 Class GC 5.000% due 11/15/29 355 347
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2004-289 Class PC 5.000% due 08/01/18 815 799 5.000% due 07/15/30 640 626 6.000% due 12/01/35 416 415 Series 2005-291 Class KP 5.000% due 11/15/29 215 210 Series 2005-292 Class IG Interest Only STRIP 5.000% due 04/15/23 329 52 Series 2005-294 Class FA 5.490% due 03/15/20 484 484 Series 2005-302 Class MB 5.000% due 12/15/28 200 197 Series 2005-306 Class PC 5.000% due 02/15/29 620 611 Series 2006-313 Class FP (E) Zero coupon due 04/15/36 445 460 30 Year TBA (I) 5.000% 5,295 5,085 5.500% 3,650 3,592 6.000% 3,825 3,839 Freddie Mac Gold 6.000% due 2016 50 50 5.000% due 2018 99 97 5.500% due 2020 1,858 1,851 8.500% due 2025 19 20 8.500% due 2027 95 102 7.000% due 2030 78 80 7.188% due 2030 (E) 6 7 7.500% due 2030 207 217 8.000% due 2030 69 73 7.000% due 2031 188 193 7.500% due 2031 15 15 8.000% due 2031 19 20 7.500% due 2032 106 111 5.000% due 2033 643 622 7.000% due 2033 38 39 Series 1998-191 Class IO Interest Only STRIP 8.000% due 01/01/28 31 7 Series 1998-194 Class IO Interest Only STRIP 6.500% due 04/01/28 108 25 Series 2001-212 Class IO 6.000% due 05/01/31 81 18 Series 2001-215 Class IO 8.000% due 06/01/31 59 14 Freddie Mac Non Gold 8.500% due 2017 54 57 10.500% due 2017 24 27
Fixed Income III Fund 89 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ 10.000% due 2020 57 62 7.078% due 2027 40 41 6.749% due 2028 32 32 7.036% due 2028 33 34 4.919% due 2034 957 948 Freddie Mac Reference REMIC Series 2006-R00 Class AK 5.750% due 12/15/18 652 652 Series 2006-R00 Class FK (E) 5.720% due 07/15/23 949 954 Freddie Mac REMIC Series 2004-277 Class KE 3.500% due 12/15/17 74 73 Freddie Mac REMICS Series 2003-256 Class FJ (E) 5.720% due 02/15/33 414 417 Series 2003-269 Class FE 5.920% due 12/15/28 708 714 Series 2005-299 Class KF (E) 5.720% due 06/15/35 237 237 Series 2005-300 Class ED 5.000% due 07/15/25 535 503 Series 2006-323 Class PA 6.000% due 03/15/26 695 702 GE Capital Commercial Mortgage Corp. Series 2002-1A Class A3 6.269% due 12/10/35 305 316 Series 2002-3A Class A1 4.229% due 12/10/37 1,352 1,319 Ginnie Mae I 10.500% due 2016 23 25 11.000% due 2020 52 57 10.000% due 2022 45 49 7.500% due 2024 24 25 7.500% due 2032 29 30 30 Year TBA (I) 5.500% 4,140 4,097 6.000% 1,000 1,009 Ginnie Mae II (E) 4.750% due 2023 21 21 5.125% due 2023 37 37 5.125% due 2023 23 24 4.750% due 2024 150 151 5.125% due 2024 164 166 5.375% due 2025 92 92 5.375% due 2025 63 64 5.375% due 2025 43 44 4.750% due 2025 5 5 5.125% due 2026 69 70 5.375% due 2027 116 116 5.375% due 2027 6 6 4.750% due 2027 100 101 5.125% due 2027 9 9
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ 5.375% due 2028 4 4 5.375% due 2030 224 225 Global Signal Trust Series 2004-2A Class A (p) 4.232% due 12/15/14 225 218 Series 2006-1 Class B 5.588% due 02/15/36 125 125 Series 2006-1 Class C 5.707% due 02/15/36 190 190 GMAC Mortgage Corp. Loan Trust Series 2005-AR2 Class 4A 5.191% due 05/25/35 360 353 Series 2005-AR6 Class 3A1 5.299% due 11/19/35 729 722 Series 2006-HE3 Class A2 5.799% due 10/25/36 165 165 Government National Mortgage Association (E) Series 1999-27 Class SE Interest Only STRIP 3.280% due 08/16/29 151 14 Series 1999-40 Class FE 5.870% due 11/16/29 351 355 Series 1999-44 Class SA Interest Only STRIP 3.230% due 12/16/29 165 15 Series 2000-29 Class S Interest Only STRIP 3.180% due 09/20/30 43 3 Series 2002-27 Class SA Interest Only STRIP 2.680% due 05/16/32 62 4 Greenpoint Mortgage Funding Trust Series 2005-AR3 Class X1 Interest Only STRIP 1.273% due 08/25/45 1,931 59 Series 2005-AR4 Class X4 Interest Only STRIP 2.238% due 10/25/45 2,564 79 Series 2006-AR2 Class 3A2 5.640% due 03/25/36 684 684 Greenwich Capital Commercial Funding Corp. Series 2004-GG1 Class A7 5.317% due 06/10/36 1,115 1,104 Series 2005-GG5 Class A41 5.243% due 04/10/37 1,040 1,030
90 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2006-RR1 Class A1 (p) 5.781% due 03/18/49 490 496 GS Mortgage Securities Corp. II Series 2006-FL8 Class A1 (E)(p) 5.420% due 06/06/20 338 338 Series 2006-GG6 Class A4 5.553% due 04/10/38 285 286 Series 2006-GG8 Class A4 5.560% due 11/10/39 425 426 Series 2006-GG8 Class AAB 5.535% due 11/10/39 485 486 Series 2006-RR2 Class A1 (p) 5.689% due 01/07/36 305 305 Series 2006-RR3 Class A1S (p) 5.466% due 03/18/49 515 517 GSMPS Mortgage Loan Trust (p) Series 1998-3 Class A 7.750% due 09/19/27 50 53 Series 1999-3 Class A 8.000% due 08/19/29 84 89 Series 2005-RP1 Class 1A3 8.000% due 01/25/35 273 288 Series 2005-RP1 Class 1A4 8.500% due 01/25/35 144 153 Series 2006-RP1 Class 1A3 8.000% due 01/25/36 169 171 GSR Mortgage Loan Trust Series 2004-7 Class 1A1 3.393% due 06/25/34 434 433 Series 2005-AR6 Class 2A1 (E) 4.539% due 09/25/35 1,472 1,444 Series 2006-1F Class 5A2 6.000% due 02/25/36 199 197 Series 2006-OA1 Class 2A1 (E) 5.510% due 08/25/46 756 756 Harborview Mortgage Loan Trust Series 2005-10 Class 2A1A (E) 5.630% due 11/19/35 669 671 Series 2005-10 Class 2A1B (E) 5.700% due 11/19/35 334 336 Series 2005-14 Class 3A1A 5.320% due 12/19/35 218 217 Series 2005-16 Class 2A1A (E) 5.560% due 01/19/36 1,048 1,051 Series 2005-16 Class 3A1A (E) 5.570% due 01/19/36 1,093 1,096 Series 2005-16 Class 3A1B 5.660% due 01/19/36 455 456 Series 2005-16 Class X1 Interest Only STRIP 2.287% due 01/19/36 1,777 51 Series 2005-16 Class X3 Interest Only STRIP 2.009% due 01/19/36 4,753 125
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2005-2 Class 2A1A (E) 5.570% due 05/19/35 143 143 Series 2005-2 Class X Interest Only STRIP 1.704% due 05/19/35 3,101 77 Series 2005-3 Class X2 Interest Only STRIP 1.412% due 06/19/35 2,951 70 Series 2005-5 Class 2A1B (E) 5.610% due 07/19/45 195 195 Series 2006-1 Class PO1 Zero coupon due 03/19/37 1 1 Series 2006-1 Class X1 Interest Only STRIP 2.076% due 03/19/37 3,220 148 Series 2006-10 Class 2A1A (E) 5.530% due 11/19/36 885 885 Series 2006-12 Class 2A2A (E) 5.510% due 01/19/38 1,493 1,493 Series 2006-14 Class 2A1A (E) 5.470% due 02/19/37 673 673 Series 2006-5 Class X2 Interest Only STRIP 2.193% due 07/19/47 2,716 102 Series 2006-7 Class 2A1B (E) 5.600% due 08/19/46 1,216 1,218 Series 2006-9 Class 2A1A (E) 5.560% due 11/19/36 795 795 Impac CMB Trust (E) Series 2004-3 Class 1A 5.570% due 06/25/34 95 95 Indymac Index Mortgage Loan Trust Series 2005-AR1 Class AX2 Interest Only STRIP 1.344% due 07/25/35 2,340 76 Series 2005-AR2 Class 1A21 5.877% due 12/25/35 314 313 Series 2006-AR1 Class 4A2 6.398% due 08/25/36 593 598 Series 2006-AR2 Class A2 (E) 5.410% due 11/25/36 592 592 Series 2006-AR6 Class 2A1B 5.700% due 06/25/47 789 791 Series 2006-FLX Class A1 (E) 5.530% due 11/25/36 471 471
Fixed Income III Fund 91 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ JP Morgan Chase Commercial Mortgage Securities Corp. Series 2002-C1 Class A3 5.376% due 07/12/37 250 250 Series 2003-C1 Class A2 4.985% due 01/12/37 390 381 Series 2004-LN2 Class A1 4.475% due 07/15/41 554 537 Series 2005-LDP Class A3A1 4.871% due 10/15/42 505 493 Series 2005-LDP Class A4 4.918% due 10/15/42 250 240 Series 2006-CB1 Class A4 5.817% due 05/12/45 525 526 Series 2006-LDP Class A4 5.876% due 04/15/45 440 454 5.561% due 05/15/45 700 693 Series 2006-LDP Class AJ 5.876% due 04/15/45 370 380 Series 2006-RR1 Class A1 (p) 5.455% due 10/18/52 270 268 JP Morgan Mortgage Trust Series 2005-A1 Class 4A1 (E) 4.776% due 02/25/35 569 548 Series 2005-A4 Class 1A1 5.406% due 07/25/35 300 296 Series 2005-A6 Class 1A2 5.152% due 09/25/35 475 474 Series 2007-A1 Class 2A1 (E) 4.768% due 07/25/35 1,000 989 LB-UBS Commercial Mortgage Trust Series 2002-C4 Class A5 4.853% due 09/15/31 1,000 975 Series 2004-C4 Class A3 4.983% due 06/15/29 1,055 1,049 Series 2006-C1 Class A4 5.156% due 02/15/31 1,500 1,465 Series 2006-C4 Class A4 5.899% due 06/15/38 255 263 Lehman Brothers Floating Rate Commercial Mortgage Trust (E)(p) Series 2006-LLF Class A1 5.400% due 09/15/21 284 284 Lehman Mortgage Trust Series 2005-2 Class 2A3 5.500% due 12/25/35 336 335 Series 2005-3 Class 1A3 5.500% due 01/25/36 1,207 1,207 Lehman XS Trust (E) Series 2005-5N Class 3A1A 5.620% due 11/25/35 1,071 1,071 Series 2005-9N Class 1A1 5.590% due 02/25/36 1,284 1,287
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2006-16N Class A4A 5.510% due 11/25/46 1,470 1,471 Luminent Mortgage Trust Series 2006-1 Class A1 5.560% due 04/25/36 576 577 Series 2006-6 Class A1 (E) 5.600% due 10/25/46 527 528 Mastr Adjustable Rate Mortgages Trust Series 2005-6 Class 7A1 5.375% due 06/25/35 191 188 Series 2006-OA2 Class 4A1A (E) 5.677% due 12/25/46 993 993 Mastr Alternative Loans Trust Series 2003-2 Class 6A1 6.000% due 03/25/33 569 565 Series 2003-4 Class B1 5.664% due 06/25/33 362 362 Series 2003-6 Class 3A1 8.000% due 09/25/33 32 33 Series 2003-9 Class 1A1 5.500% due 12/25/18 153 151 Series 2004-10 Class 5A6 5.750% due 09/25/34 410 402 Series 2005-3 Class 7A1 6.000% due 04/25/35 254 254 Mastr Asset Securitization Trust Series 2003-11 Class 6A8 5.820% due 12/25/33 791 795 Series 2003-7 Class 4A35 (E) 5.720% due 09/25/33 637 638 Series 2004-4 Class 2A2 (E) 5.770% due 04/25/34 255 255 Mastr Reperforming Loan Trust (p) Series 2005-1 Class 1A5 8.000% due 08/25/34 222 233 Series 2005-2 Class 1A4 8.000% due 05/25/35 274 279 Mastr Specialized Loan Trust (p) Series 2005-2 Class A2 5.006% due 07/25/35 154 151 Mellon Residential Funding Corp. (E) Series 2000-TBC Class A1 5.560% due 06/15/30 323 323 Merrill Lynch Mortgage Investors, Inc. (E) Series 2005-A6 Class 2A1 5.440% due 08/25/35 236 236
92 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Merrill Lynch Mortgage Trust Series 2002-MW1 Class J (p) 5.695% due 07/12/34 185 180 Series 2004-MKB Class A2 4.353% due 02/12/42 615 600 Series 2005-GGP Class E (p) 4.330% due 11/15/10 105 104 Series 2005-GGP Class F (p) 4.351% due 11/15/10 105 104 MLCC Mortgage Investors, Inc. Series 2004-HB1 Class A2 5.771% due 04/25/29 130 130 Morgan Stanley Capital I Series 1999-FNV Class G 6.120% due 03/15/31 130 131 Series 2005-IQ1 Class AAB 5.178% due 09/15/42 810 799 Series 2006-HQ8 Class A4 5.388% due 03/12/44 385 384 Series 2006-HQ9 Class A4 5.731% due 07/20/44 480 486 Morgan Stanley Dean Witter Capital I (p) Series 2001-TOP Class E 7.313% due 02/15/33 100 105 Morgan Stanley Mortgage Loan Trust Series 2006-11 Class 1A6 6.231% due 08/25/36 530 537 Series 2006-2 Class 6A 6.500% due 02/25/36 214 216 Nomura Asset Acceptance Corp. Series 2005-WF1 Class 2A2 4.786% due 03/25/35 415 408 Series 2006-AF1 Class 1A2 6.159% due 05/25/36 465 469 Prime Mortgage Trust Series 2004-CL1 Class 1A1 6.000% due 02/25/34 74 74 Series 2004-CL1 Class 1A2 (E) 5.720% due 02/25/34 49 49 Series 2004-CL1 Class 2A2 (E) 5.720% due 02/25/19 22 22 Residential Accredit Loans, Inc. Series 2004-QS5 Class A6 5.950% due 04/25/34 131 132 Series 2004-QS8 Class A4 5.750% due 06/25/34 642 645 Series 2005-QA1 Class A41 5.717% due 09/25/35 202 201 Series 2005-QA8 Class NB3 5.500% due 07/25/35 438 437 Series 2006-QH1 Class A1 (E) 5.540% due 12/25/36 698 698
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2006-QO1 Class 1A1 5.610% due 02/25/46 251 251 Series 2006-QO1 Class 2A1 5.620% due 02/25/46 280 280 Series 2006-QO1 Class A1 (E) 5.510% due 01/25/37 900 900 Series 2006-QO6 Class A2 (E) 5.580% due 06/25/46 775 774 Series 2006-QS6 Class 1A13 6.000% due 06/25/36 1,070 1,073 Series 2007-QH1 Class A1 (E) 5.470% due 02/25/37 850 850 Residential Asset Mortgage Products, Inc. Series 2004-SL1 Class A3 7.000% due 11/25/31 59 59 Series 2004-SL4 Class A3 6.500% due 07/25/32 141 143 Series 2005-SL1 Class A2 6.000% due 05/25/32 203 207 Residential Asset Securities Corp. Series 2003-KS4 Class AIIB 5.640% due 06/25/33 157 157 Residential Asset Securitization Trust (E) Series 2003-A15 Class 1A2 5.770% due 02/25/34 759 762 Residential Funding Mortgage Securities I Series 2003-S14 Class A5 5.750% due 07/25/18 758 761 Series 2003-S20 Class 1A7 (E) 5.850% due 12/25/33 208 209 Series 2003-S5 Class 1A2 (E) 5.800% due 11/25/18 384 386 Series 2006-SA3 Class 3A1 6.079% due 09/25/36 485 488 Series 2006-SA4 Class 2A1 6.164% due 10/25/36 489 494 Sequoia Mortgage Trust Series 2004-3 Class A 5.306% due 04/20/34 848 848 Small Business Administration Participation Certificates Series 2005-20G Class 1 4.750% due 07/01/25 1,474 1,419
Fixed Income III Fund 93 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Structured Adjustable Rate Mortgage Loan Trust Series 2004-18 Class 5A 5.500% due 12/25/34 168 167 Series 2005-22 Class 4A2 5.380% due 12/25/35 56 55 Series 2006-5 Class 5A4 5.582% due 06/25/36 114 113 Structured Asset Mortgage Investments, Inc. Series 2006-AR1 Class 2A1 (E) 5.580% due 02/25/36 1,752 1,756 Series 2006-AR2 Class A2 5.640% due 02/25/36 528 529 Series 2006-AR3 Class 11A2 5.620% due 04/25/36 910 910 Series 2006-AR3 Class 3A1 5.540% due 02/25/36 379 380 Series 2006-AR8 Class A1A (E) 5.520% due 10/25/36 1,832 1,832 Structured Asset Securities Corp. Series 2002-22H Class 1A 6.960% due 11/25/32 32 33 Series 2004-12H Class 1A 6.000% due 05/25/34 136 136 Series 2004-21X Class 1A3 4.440% due 12/25/34 1,105 1,090 Series 2005-6 Class B2 5.344% due 05/25/35 98 93 Thornburg Mortgage Securities Trust (E) Series 2003-2 Class A1 5.690% due 04/25/43 600 601 Series 2006-5 Class A1 5.440% due 08/25/36 2,345 2,341 Series 2006-6 Class A1 5.430% due 12/25/36 390 389 Tobacco Settlement Authority of Iowa 6.500% due 06/01/23 100 99 Wachovia Bank Commercial Mortgage Trust Series 2005-C16 Class A2 4.380% due 10/15/41 1,095 1,065 Series 2005-C21 Class A4 5.196% due 10/15/44 1,500 1,475 Series 2006-C28 Class A2 5.500% due 10/15/48 510 511 Series 2006-WL7 Class A1 (E)(p) 5.410% due 09/15/21 1,560 1,560 Wamu Mortgage Pass-Through Certificates (E) Series 2005-AR1 Class A1B3 5.670% due 12/25/45 547 548
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Washington Mutual Alternative Mortgage Pass-Through Certificates Series 2005-4 Class CB11 5.500% due 06/25/35 220 214 Series 2005-6 Class 3CB 5.500% due 08/25/35 540 528 Series 2006-2 Class 2CB 6.500% due 03/25/36 291 294 Series 2006-5 Class 2CB3 6.000% due 07/25/36 476 480 Series 2006-5 Class LB1 6.000% due 07/25/36 224 221 Series 2006-AR2 Class A1A 5.698% due 04/25/46 612 614 Series 2006-AR5 Class 3A (E) 5.698% due 07/25/46 347 349 Series 2006-AR7 Class A1A (E) 5.803% due 09/25/46 877 880 Series 2006-AR8 Class 2A (E) 5.608% due 09/25/46 961 964 Series 2006-AR9 Class 2A (E) 5.667% due 11/25/46 991 991 Washington Mutual, Inc. Series 2003-S10 Class A2 5.000% due 10/25/18 197 193 Series 2003-S9 Class A2 5.900% due 10/25/33 701 704 Series 2004-AR1 Class A2C (E) 5.635% due 07/25/44 36 36 Series 2004-AR1 Class A3 (E) 5.635% due 10/25/44 28 28 Series 2004-AR1 Class X Interest Only STRIP 0.547% due 07/25/44 2,689 49 0.376% due 10/25/44 3,734 68 Series 2004-AR8 Class X Interest Only STRIP 0.548% due 06/25/44 1,598 29 Series 2004-CB3 Class 1A 6.000% due 10/25/34 91 90 Series 2004-CB3 Class 4A 6.000% due 10/25/19 231 233 Series 2005-AR1 Class 1A1 4.838% due 10/25/35 562 553 Series 2005-AR1 Class A1A1 5.640% due 10/25/45 763 763 5.590% due 12/25/45 (E) 721 723
94 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2005-AR1 Class A1B1 5.640% due 08/25/45 143 143 5.610% due 10/25/45 296 297 5.600% due 11/25/45 291 292 5.570% due 12/25/45 260 260 Series 2005-AR6 Class B3 (E) 6.010% due 04/25/45 423 423 Series 2005-AR8 Class 2A1A (E) 5.610% due 07/25/45 786 788 Series 2005-AR8 Class 2AB3 5.710% due 07/25/45 296 297 Series 2006-AR1 Class 1A (E) 5.638% due 10/25/46 940 943 5.703% due 12/25/46 964 966 Series 2006-AR1 Class 1A1 5.970% due 09/25/36 502 504 Series 2006-AR1 Class 1A4 5.666% due 11/25/36 636 635 Series 2006-AR1 Class 3A1A (E) 5.803% due 09/25/46 972 975 Series 2006-AR4 Class 1A1B 5.767% due 05/25/46 628 629 Series 2006-AR7 Class 1A (E) 5.738% due 07/25/46 264 264 Series 2006-AR8 Class 1A5 5.928% due 08/25/46 96 96 Series 2006-AR8 Class 2A3 (E) 6.160% due 08/25/46 62 63 Wells Fargo Mortgage Backed Securities Trust Series 2004-T Class A1 (E) 4.382% due 09/25/34 194 194 Series 2005-12 Class 1A7 5.500% due 11/25/35 505 490 Series 2005-14 Class 2A1 5.500% due 12/25/35 981 957 Series 2005-17 Class 1A1 5.500% due 01/25/36 628 613 Series 2005-17 Class 1A2 5.500% due 01/25/36 392 381 Series 2006-1 Class A3 5.000% due 03/25/21 353 344 Series 2006-2 Class 2A3 5.500% due 03/25/36 917 913 Series 2006-2 Class 3A1 5.750% due 03/25/36 534 527 Series 2006-4 Class 1A8 5.750% due 04/25/36 281 283 Series 2006-4 Class 2A3 5.750% due 04/25/36 221 217 Series 2006-AR1 Class 1A2 (E) 6.045% due 09/25/36 295 295 Series 2006-AR1 Class 2A4 (E) 6.119% due 10/25/36 403 406
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series 2006-AR1 Class 5A1 (E) 5.605% due 07/25/36 456 455 Series 2006-AR1 Class A1 5.730% due 12/25/36 259 257 Series 2006-AR1 Class A7 5.537% due 08/25/36 581 577 Series 2006-AR2 Class 2A1 4.950% due 03/25/36 637 628 Series 2006-AR4 Class 1A1 5.865% due 04/25/36 633 630 Series 2006-AR4 Class 2A1 5.787% due 04/25/36 951 948 Series 2006-AR5 Class 2A1 5.536% due 04/25/36 387 386 Zuni Mortgage Loan Trust (E) Series 2006-OA1 Class A1 5.450% due 08/25/36 541 540 ------------ 381,580 ------------ Municipal Bonds - 0.3% Badger TOB Asset Securitization Corp. Revenue Bonds, weekly demand 6.375% due 06/01/32 800 872 California State University Revenue Bonds, weekly demand (u) 5.000% due 11/01/30 140 148 City of Colorado Springs Colorado Revenue Bonds, weekly demand 5.000% due 11/15/33 200 208 Golden State Tobacco Securitization Corp. Revenue Bonds, weekly demand 6.250% due 06/01/33 435 485 New Jersey Economic Development Authority Revenue Bonds, weekly demand 5.750% due 06/15/34 235 249 New York State Urban Development Corp. Revenue Bonds, weekly demand (u) 5.250% due 03/15/34 180 194 State of California General Obligation Unlimited, weekly demand 5.000% due 02/01/33 100 104
Fixed Income III Fund 95 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ State of Illinois General Obligation Unlimited 5.100% due 06/01/33 150 141 State of Oregon General Obligation Unlimited 5.892% due 06/01/27 175 179 State of Texas General Obligation Unlimited, weekly demand 4.750% due 04/01/35 250 253 West Virginia Economic Development Authority Revenue Bonds (u) 5.370% due 07/01/20 65 64 ------------ 2,897 ------------ Non-US Bonds - 1.0% Argentina Government International Bond 5.830% due 12/31/33 ARS 500 248 Bombardier, Inc. (p) 7.250% due 11/15/16 EUR 125 168 Brazilian Government International Bond 12.500% due 01/05/16 BRL 614 330 Colombia Government International Bond 12.000% due 10/22/15 COP 1,427,000 742 Deutsche Bundesrepublik Series 01 5.000% due 07/04/11 EUR 211 285 Federative Republic of Brazil 12.500% due 01/05/22 BRL 2,090 1,122 Mexican Bonos 9.500% due 12/18/14 MXN 340 337 Series M 10 8.000% due 12/17/15 MXN 3,023 276 Series M 20 10.000% due 12/05/24 MXN 6,000 648 Series MI10 8.000% due 12/19/13 MXN 6,000 548 Norway Government Bond 6.500% due 05/15/13 NOK 3,336 589 Poland Government Bond Series 1015 6.250% due 10/24/15 PLN 376 135 Province of Ontario Canada 4.500% due 03/08/15 CAD 285 243 Province of Quebec Canada 5.000% due 12/01/15 CAD 490 431 5.000% due 12/01/38 CAD 200 176 Quebec Residual Zero Coupon due 12/01/36 CAD 880 183
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Queensland Treasury Corp. Series 15G 6.000% due 10/14/15 AUD 456 351 United Kingdom Gilt 5.750% due 12/07/09 GBP 900 1,783 8.000% due 09/27/13 GBP 334 760 ------------ 9,355 ------------ United States Government Agencies - 4.9% Fannie Mae 4.200% due 03/24/08 3,500 3,456 4.050% due 02/06/09 4,300 4,211 4.150% due 09/10/09 4,000 3,908 3.875% due 02/15/10 (N) 1,075 1,040 4.125% due 05/12/10 2,800 2,720 4.375% due 06/21/10 2,500 2,446 5.050% due 02/07/11 2,200 2,197 Zero coupon due 10/09/19 695 341 Federal Home Loan Bank 4.800% due 05/02/08 5,800 5,770 Series 577 4.500% due 09/26/08 5,500 5,444 Federal Home Loan Bank System 5.375% due 08/19/11 (N) 240 243 5.310% due 12/28/12 1,800 1,821 Series IY08 3.400% due 03/18/08 2,000 1,960 Financing Corp. Principal Only STRIP Series 1 Zero coupon due 05/11/16 130 81 Series 12P Zero coupon due 12/06/18 445 240 Series 13 Zero coupon due 12/27/16 450 271 Series 13P Zero coupon due 12/27/18 1,195 643 Series 16P Zero coupon due 04/05/19 475 251 Series 19 Zero coupon due 06/06/16 380 235 Series 3P Zero coupon due 11/30/17 275 157 Series 5P Zero coupon due 02/08/18 115 65 Series 8P Zero coupon due 08/03/18 1,030 567 Series 9P Zero coupon due 10/06/17 495 286 Series C-P Zero coupon due 11/30/17 570 326
96 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Series E-P Zero coupon due 11/02/18 240 130 Freddie Mac 3.450% due 03/12/08 2,000 1,961 4.750% due 01/19/16 100 97 Series * (N) 2.750% due 03/15/08 280 272 United States Treasury Inflation Indexed Bonds 2.000% due 01/15/27 330 328 United States Treasury Notes 4.500% due 02/15/36 4,200 3,926 ------------ 45,393 ------------ United States Government Treasuries - 7.5% United States Treasury Principal Principal Only STRIP Zero Coupon due 08/15/26 2,900 1,090 United States Treasury Inflation Indexed Bonds 2.375% due 04/15/11 1,076 1,073 3.375% due 01/15/12 (N) 2,071 2,164 3.000% due 07/15/12 (N) 308 318 1.875% due 07/15/13 329 319 2.000% due 01/15/14 992 964 2.000% due 07/15/14 (N) 2,213 2,152 1.875% due 07/15/15 1,554 1,493 2.500% due 07/15/16 (N) 2,496 2,520 2.375% due 01/15/25 (N) 748 744 2.000% due 01/15/26 2,716 2,547 3.625% due 04/15/28 (N) 498 600 United States Treasury Notes 4.875% due 10/31/08 5,300 5,292 4.750% due 12/31/08 (N) 10,800 10,765 4.375% due 12/15/10 320 315 4.500% due 02/28/11 660 652 5.125% due 06/30/11 (N) 350 354 4.500% due 09/30/11 2,300 2,269 4.625% due 10/31/11 (N) 190 188 4.625% due 12/31/11 (N) 3,570 3,538 3.875% due 02/15/13 (N) 2,475 2,356 Principal Only STRIP Zero coupon due 11/15/13 555 402 4.250% due 08/15/15 1,645 1,579 4.625% due 11/15/16 (N) 2,695 2,653 8.125% due 08/15/19 (N) 4,950 6,403 Principal Only STRIP Zero coupon due 11/15/21 1,245 591 7.625% due 02/15/25 (N) 1,450 1,894 6.000% due 02/15/26 (N) 7,835 8,765
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ 6.375% due 08/15/27 (N) 745 874 6.125% due 08/15/29 (N) 4,810 5,540 ------------ 70,414 ------------ TOTAL LONG-TERM INVESTMENTS (cost $783,093) 784,306 ------------ COMMON STOCKS - 0.6% Financial Services - 0.6% Emerging Market Local Currency Fund (AE) 272,798 3,066 Pacific Investment Management Co. Series High Yield Portfolio Institutional 279,203 2,404 ------------ TOTAL COMMON STOCKS (cost $5,523) 5,470 ------------ PREFERRED STOCKS - 0.2% Financial Services - 0.2% DG Funding Trust (E)(A) 118 1,242 Harborview NIM Corp. (AE)(p) 5,871 382 ------------ 1,624 ------------ Producer Durables - 0.0% Nexen, Inc. 4,055 103 ------------ TOTAL PREFERRED STOCKS (cost $1,728) 1,727 ------------ WARRANTS & RIGHTS - 0.0% Consumer Discretionary - 0.0% Travelcenters of America, Inc. 2009 Warrants (AE) 20 1 ------------ Miscellaneous - 0.0% Mexico Government International Bond Value Recovery Rights (AE) 1,300,000 17 ------------ TOTAL WARRANTS & RIGHTS (cost $40) 18 ------------
Fixed Income III Fund 97 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
NOTIONAL MARKET AMOUNT VALUE $ $ - ------------------------------------------------------------------------------ OPTIONS PURCHASED - 0.1% (Number of Contracts) 90 Day Short Sterling Futures Mar 2007 94.63 Put (55) 12,781 -- Eurodollar Futures Mar 2007 92.00 Put (40) 9,200 -- Mar 2007 92.25 Put (40) 9,225 -- Jun 2007 91.25 Put (368) 83,950 2 Jun 2007 94.50 Put (39) 9,214 2 Jun 2007 94.25 Put (294) 69,274 4 Sep 2007 90.50 Put (276) 62,445 2 Sep 2007 91.00 Put (15) 3,413 -- Sep 2007 91.25 Put (94) 21,444 1 Sep 2007 91.75 Put (87) 19,956 1 Sep 2007 94.75 Put (130) 30,794 50 Dec 2007 91.25 Put (152) 34,675 1 Mar 2008 91.75 Put (240) 55,050 2 Swaptions (Fund Pays/Fund Receives) EUR Three Month LIBOR/ EUR 3.960% Jul 2007 0.00 Call (1) 25,806 3 EUR Three Month LIBOR/ EUR 3.960% Jul 2007 0.00 Call (2) 10,323 4 EUR Six Month LIBOR/ EUR 4.10% Jul 2007 0.00 Call (1) 21,386 2 GBP Three Month LIBOR/ GBP 5.080% Jun 2007 0.00 Call (1) 3,311 -- GBP Six Month LIBOR/ GBP 5.080% Jun 2007 0.00 Call (1) 5,297 -- USD Three Month LIBOR/ USD 5.170% Feb 2007 0.00 Call (1) 4,600 -- USD Three Month LIBOR/ USD 5.080% Apr 2007 0.00 Call (1) 11,684 3 USD Three Month LIBOR/ USD 5.200% May 2007 0.00 Call (1) 52,000 46 USD Three Month LIBOR/ USD 5.250% Jun 2007 0.00 Call (2) 57,250 31 USD Three Month LIBOR/ USD 5.500% Jun 2007 0.00 Call (1) 44,000 50 USD Three Month LIBOR/ USD 4.750% Jul 2007 0.00 Call (1) 42,750 51
NOTIONAL MARKET AMOUNT VALUE $ $ - ------------------------------------------------------------------------------ USD Three Month LIBOR/ USD 4.850% Jul 2007 0.00 Call (1) 126,000 92 USD Three Month LIBOR/ USD 4.900% Jul 2007 0.00 Call (1) 63,700 91 USD Three Month LIBOR/ USD 5.370% Jul 2007 0.00 Call (1) 35,442 34 USD Three Month LIBOR/ USD 4.700% Aug 2007 0.00 Call (1) 28,200 35 USD Three Month LIBOR/ USD 4.800% Aug 2007 0.00 Call (1) 24,000 42 USD Three Month LIBOR/ USD 4.900% Aug 2007 0.00 Call (1) 14,700 21 USD Three Month LIBOR/ USD 4.900% Aug 2007 0.00 Call (1) 58,800 50 USD Three Month LIBOR/ USD 5.000% Aug 2007 0.00 Call 91) 79,500 94 USD Six Month LIBOR/ USD 4.850% Jul 2007 0.00 Call (1) 48,500 1 USD Six Month LIBOR/ USD 4.900% Jul 2007 0.00 Call (1) 34,300 50 ------------ TOTAL OPTIONS PURCHASED (cost $859) 765 ------------
PRINCIPAL AMOUNT ($) OR SHARES -------------- SHORT-TERM INVESTMENTS - 24.4% American General Finance Corp. (E) Series MTNG 5.406% due 03/23/07 100 100 AT&T Wireless Services, Inc. 7.500% due 05/01/07 1,190 1,195 AT&T, Inc. (p) 4.214% due 06/05/07 600 600
98 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ BNP Paribas 5.293% due 07/03/07 300 300 Caesars Entertainment, Inc. 9.375% due 02/15/07 330 330 Capital Auto Receivables Asset Trust (E) Series 2003-3 Class A3B 5.400% due 01/15/08 72 72 Capital One Auto Finance Trust Series 2006-C Class A1 5.340% due 12/14/07 400 400 Caterpillar Financial Services Corp. Series MTNF 5.445% due 08/20/07 (E) 155 155 3.625% due 11/15/07 60 59 CC Funding Trust I 6.900% due 02/16/07 230 230 CIT Group, Inc. 3.650% due 11/23/07 90 89 Citigroup Global Markets Deutschland for Tyumen Oil Co. Series REGS 11.000% due 11/06/07 410 424 Clorox Co. (E) 5.485% due 12/14/07 225 225 Comcast Cable Communications LLC 8.375% due 05/01/07 40 40 Daimlerchrysler NA Holding Corp. 5.345% due 06/22/07 1,300 1,272 Donohue Forest Products 7.625% due 05/15/07 200 200 Dresdner Bank AG (A) Zero Coupon due 01/24/08 760 718 Enterprise Products Operating, LP Series B 4.000% due 10/15/07 265 262 FedEx Corp. 2.650% due 04/01/07 70 70 5.455% due 08/08/07 (E) 400 400 Ford Motor Credit Co. (E) 6.315% due 03/21/07 800 800 France Treasury Bills BTF Zero Coupon due 04/05/07 1,000 1,295 General Electric Capital Corp. 5.200% due 07/30/07 3,100 3,096 Harrah's Operating Co., Inc. 7.125% due 06/01/07 355 356 Hilton Hotels Corp. 7.950% due 04/15/07 110 110 Hyatt Equities LLC (p) 6.875% due 06/15/07 140 140 International Bank for Reconstruction & Development Zero Coupon due 08/20/07 303 200
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ International Lease Finance Corp. 3.750% due 08/01/07 35 35 JPMorgan Chase & Co. 5.350% due 03/01/07 75 75 Mandalay Resort Group Series B 10.250% due 08/01/07 945 963 Marsh & McLennan Cos., Inc. 5.375% due 03/15/07 415 415 5.500% due 07/13/07 (E) 295 295 MGM Mirage 9.750% due 06/01/07 660 667 Mirage Resorts, Inc. 6.750% due 08/01/07 205 206 Motorola, Inc. 4.608% due 11/16/07 165 164 Netherlands Government Bond Series 1 5.750% due 02/15/07 145 189 Norfolk Southern Corp. 7.350% due 05/15/07 100 101 Panhandle Eastern Pipe Line Series B 2.750% due 03/15/07 45 45 Pepco Holdings, Inc. 5.500% due 08/15/07 405 405 Plantinum Underwriters Financial, Inc. Series B 6.371% due 11/16/07 135 134 Pricoa Global Funding I (E)(p) 5.457% due 01/25/08 700 701 Rabobank USA Financial Corp. 5.280% due 02/01/07 300 300 Reynolds American, Inc. Series * 6.500% due 06/01/07 145 145 Russell Investment Company Money Market Fund 159,778,000 159,778 Santander Central Hispano Financial 5.245% due 02/08/07 1,700 1,698 Santander US Debt SA Universal (E)(p) 5.375% due 09/21/07 900 901 Sempra Energy 4.621% due 05/17/07 255 254 Skandinaviska Enskilda Banken 5.235% due 03/05/07 6,100 6,039
Fixed Income III Fund 99 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Societe Generale 5.258% due 06/11/07 2,100 2,099 Societe Generale NA 5.225% due 05/10/07 4,600 4,536 St. Paul Travelers Cos., Inc. (The) 5.010% due 08/16/07 455 454 Starwood Hotels & Resorts Worldwide, Inc. 7.375% due 05/01/07 20 20 TELUS Corp. 7.500% due 06/01/07 650 654 Total SA 5.260% due 02/01/07 6,100 6,100 UBS Financial Del LLC 5.225% due 06/01/07 6,700 6,616 Union Pacific Corp. Series MTNE 6.790% due 11/09/07 35 35 United States Treasury Bills (z)(sec.) 4.829% due 02/15/07 (c) 10 10 4.847% due 02/15/07 (c) 20 20 4.849% due 02/15/07 (c) 50 50 4.855% due 02/15/07 (c) 5 5 4.886% due 02/15/07 (c) 30 30 4.889% due 02/15/07 (c) 50 50 4.895% due 02/15/07 (c) 15 15 4.948% due 02/15/07 (c) 10 10 4.964% due 02/15/07 (c) 50 50 4.983% due 02/15/07 (c) 25 25 5.035% due 02/15/07 (c) 140 140 5.131% due 02/15/07 (c) 75 75 4.932% due 03/15/07 (c) 255 254 4.933% due 03/15/07 (c) 20 20 4.936% due 03/15/07 (c) 200 199 4.969% due 07/15/07 (c) 200 199 5.001% due 03/15/07 (c) 250 249 5.028% due 03/15/07 (c) 1,000 994 2.214% due 07/15/07 100 99 5.111% due 07/15/07 200 196 United States Treasury Inflation Indexed Bonds (N) 3.625% due 01/15/08 287 290 United States Treasury Notes 3.125% due 05/15/07 (N) 3,900 3,878 4.375% due 12/31/07 7,575 7,529 WellPoint, Inc. 3.750% due 12/14/07 90 89
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ------------------------------------------------------------------------------ Westpac Banking Corp. 5.250% due 02/06/07 6,400 6,341 Wisconsin Electric Power Co. 3.500% due 12/01/07 65 64 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $228,060) 228,043 ------------ OTHER SECURITIES - 13.1% Russell Investment Company Money Mark Fund (X) 30,321,317 30,321 State Street Securities Lending Quality Trust (X) 92,447,588 92,448 ------------ TOTAL OTHER SECURITIES (cost $122,769) 122,769 ------------ TOTAL INVESTMENTS - 122.2% (identified cost $1,142,072) 1,143,098 OTHER ASSETS AND LIABILITIES, NET - (22.2%) (207,872) ------------ NET ASSETS - 100.0% 935,226 ============
See accompanying notes which are an integral part of the schedules of investments. 100 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Australian 3 Year Bond (Australia) expiration date 03/07 (34) 6,717 (13) Australian 10 Year Bond (Australia) expiration date 03/07 (18) 9,980 (33) Euribor Futures expiration date 09/07 (4) 1,249 (2) expiration date 12/07 (22) 6,869 (7) expiration date 03/08 (9) 2,811 (9) expiration date 06/08 (5) 1,562 (5) Euro-Bund Futures (Germany) expiration date 03/07 (15) 2,241 (70) Eurodollar Futures (CME) expiration date 03/07 (114) 26,970 (16) expiration date 06/07 (76) 17,984 18 expiration date 09/07 (726) 171,962 (410) expiration date 12/07 (683) 161,931 (418) expiration date 03/08 (270) 64,051 (197) expiration date 06/08 (29) 6,882 (3) expiration date 09/08 (29) 6,884 (3) expiration date 12/08 (75) 17,804 (16) Euroyen Futures expiration date 09/07 (25) 5,139 8 expiration date 12/07 (39) 8,009 11 Euro-Schatz Bond Futures expiration date 03/07 (26) 3,493 (23) LIBOR Futures expiration date 09/07 (2) 463 (3) expiration date 12/07 (6) 1,388 (9) expiration date 03/08 (5) 1,157 (7) expiration date 06/08 (4) 926 (6) expiration date 09/08 (6) 1,389 (9) United States Treasury 2 Year Notes expiration date 03/07 (168) 34,204 (159) United States Treasury 5 Year Notes expiration date 03/07 (491) 51,325 (466) United States Treasury 10 Year Notes expiration date 03/07 (521) 55,617 (730) United States Treasury Bonds expiration date 03/07 (180) 19,823 (433)
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Short Positions Euro-Bobl Futures (Germany) expiration date 03/07 (98) 13,807 251 Japanese 10 Year Bond (Japan) expiration date 03/07 (1) 1,112 (12) Long Gilt Bond (UK) expiration date 03/07 (2) 416 13 United States Treasury 2 Year Notes expiration date 03/07 (4) 814 3 United States Treasury 5 Year Notes expiration date 03/07 (115) 12,021 151 United States Treasury 10 Year Notes expiration date 03/07 (140) 14,945 237 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (2,367) ===============
See accompanying notes which are an integral part of the schedules of investments. Fixed Income III Fund 101 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ 90 day Short Sterling Futures Mar 2007 94.75 Call (55) -- -- Eurodollar Futures Mar 2007 94.75 Put (7) 1,658 (2) Mar 2007 95.25 Put (8) 1,905 (12) Swaptions (Fund Pays/Fund Receives) EUR Three Month LIBOR/ EUR 4.100% Jul 2007 0.00 Call (2) 10,687 (13) EUR Six Month LIBOR/ EUR 4.100% Jul 2007 0.00 Call (1) 10,687 (6) EUR Six Month LIBOR/ EUR 4.230% Jul 2007 0.00 Call (1) 11,026 (6) GBP Three Month LIBOR/ GBP 4.850% Jun 2007 0.00 Call (1) 953 -- GBP Six Month LIBOR/ GBP 4.850% Jun 2007 0.00 Call (1) 1,906 -- USD Three Month LIBOR/ USD 5.240% Feb 2007 0.00 Call (1) 2,000 (1) USD Three Month LIBOR/ USD 5.220% Apr 2007 0.00 Call (1) 1,000 (6) USD Three Month LIBOR/ USD 5.300% May 2007 0.00 Call (1) 4,000 (34) USD Three Month LIBOR/ USD 5.315% May 2007 0.00 Call (1) 4,400 (37) USD Three Month LIBOR/ USD 5.325% Jun 2007 0.00 Call (1) 1,000 (9) USD Three Month LIBOR/ USD 5.340% Jun 2007 0.00 Call (1) 4,000 (42) USD Three Month LIBOR/ USD 5.600% Jun 2007 0.00 Call (1) 3,000 (53) USD Three Month LIBOR/ USD 4.750% Jul 2007 0.00 Call (1) 2,000 (2) USD Three Month LIBOR/ USD 5.000% Jul 2007 0.00 Call (1) 6,000 (20)
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ USD Three Month LIBOR/ USD 5.370% Jul 2007 0.00 Call (1) 10,000 (116) USD Three Month LIBOR/ USD 5.500% Jul 2007 0.00 Call (1) 2,200 (38) USD Six Month LIBOR/ USD 4.950% Jul 2007 0.00 Call (1) 2,200 (33) USD Three Month LIBOR/ USD 4.850% Aug 2007 0.00 Call (1) 1,000 (3) USD Three Month LIBOR/ USD 4.900% Aug 2007 0.00 Call (1) 2,000 (6) USD Three Month LIBOR/ USD 4.900% Aug 2007 0.00 Call (1) 2,000 (6) USD Three Month LIBOR/ USD 5.000% Aug 2007 0.00 Call (1) 1,000 (5) USD Three Month LIBOR/ USD 5.100% Feb 2008 0.00 Call (1) 7,000 (63) USD Six Month LIBOR/ USD 5.010% Oct 2007 0.00 Call (1) 3,000 (17) United States Treasury Bonds Feb 2007 116.00 Call (1) 116 (1) Feb 2007 110 Put (1) 110 (1) United States Treasury Notes 2 Year Futures Feb 2007 102.00 Call (344) 70,176 (172) Feb 2007 101.75 Put (69) 14,042 (14) United States Treasury Notes 5 Year Futures May 2007 106.00 Call (277) 29,362 (43) United States Treasury Notes 10 Year Futures Feb 2007 106.00 Call (16) 1,696 (14) Feb 2007 108.00 Call (16) 1,728 (1) Feb 2007 109.00 Call (15) 1,635 -- Feb 2007 107 Put (15) 1,605 (8) --------------- Total Liability for Options Written (premiums received $832) (784) ===============
See accompanying notes which are an integral part of the schedules of investments. 102 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 362 AUD 463 02/02/07 (2) USD 375 AUD 485 02/02/07 2 USD 273 AUD 349 02/21/07 (2) USD 953 AUD 1,218 03/22/07 (8) USD 960 AUD 1,213 03/22/07 (19) USD 2,127 AUD 2,723 03/22/07 (15) USD 2,135 AUD 2,723 03/22/07 (23) USD 1,853 BRL 3,955 02/02/07 9 USD 318 BRL 701 02/05/07 12 USD 529 CAD 624 02/02/07 2 USD 89 CAD 105 02/22/07 -- USD 89 CAD 105 02/22/07 -- USD 217 CAD 249 03/22/07 (5) USD 960 CAD 1,119 03/22/07 (8) USD 953 CHF 1,137 03/22/07 (35) USD 210 CNY 1,625 03/19/07 1 USD 74 EUR 57 02/02/07 -- USD 138 EUR 105 02/02/07 (1) USD 229 EUR 177 02/02/07 1 USD 243 EUR 190 02/02/07 5 USD 13 EUR 10 03/09/07 -- USD 856 EUR 660 03/22/07 6 USD 1,064 EUR 819 03/22/07 6 USD 2,645 EUR 1,992 03/22/07 (43) USD 3,080 EUR 2,321 03/22/07 (49) USD 434 EUR 340 03/23/07 10 USD 450 EUR 350 03/23/07 7 USD 787 GBP 401 02/02/07 1 USD 45 GBP 23 02/22/07 -- USD 209 GBP 108 02/22/07 3 USD 953 GBP 489 03/22/07 7 USD 960 GBP 483 03/22/07 (11) USD 2,953 GBP 1,508 03/22/07 10 USD 4,800 GBP 2,442 03/22/07 (3) USD 4 JPY 480 02/02/07 -- USD 84 JPY 9,810 02/02/07 (3) USD 84 JPY 9,810 02/02/07 (3) USD 98 JPY 11,345 02/02/07 (4) USD 164 JPY 19,465 02/02/07 (2) USD 164 JPY 18,915 02/02/07 (7) USD 173 JPY 20,488 02/02/07 (3) USD 203 JPY 23,745 02/02/07 (6) USD 215 JPY 25,650 02/02/07 (2) USD 218 JPY 25,204 02/02/07 (9) USD 247 JPY 28,430 02/02/07 (11)
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 733 JPY 84,623 02/02/07 (31) USD 1,015 JPY 116,967 02/02/07 (45) USD 4,287 JPY 500,037 02/15/07 (135) USD 1,825 JPY 208,000 03/06/07 (93) USD 74 JPY 8,998 03/09/07 1 USD 270 JPY 32,755 03/09/07 3 USD 366 JPY 44,327 03/09/07 3 USD 439 JPY 53,227 03/09/07 5 USD 1,909 JPY 222,190 03/20/07 (56) USD 154 JPY 17,811 03/22/07 (6) USD 954 JPY 112,763 03/22/07 (13) USD 2,862 JPY 336,580 03/22/07 (54) USD 106 NOK 666 02/02/07 1 USD 170 NOK 1,050 02/02/07 (2) USD 178 NOK 1,095 02/02/07 (3) USD 953 NOK 5,842 03/22/07 (15) USD 954 NOK 6,047 03/22/07 17 USD 960 NOK 6,134 03/22/07 25 USD 1,632 NOK 9,982 03/22/07 (30) USD 189 NZD 275 02/02/07 -- USD 581 NZD 843 03/22/07 (2) USD 960 NZD 1,384 03/22/07 (9) USD 1,213 NZD 1,762 03/22/07 (2) USD 1,286 NZD 1,873 03/22/07 1 USD 302 PHP 14,777 03/30/07 -- USD 168 PLN 509 02/02/07 2 USD 438 SEK 3,138 02/02/07 13 USD 952 SEK 6,557 03/22/07 (6) USD 953 SEK 6,505 03/22/07 (14) USD 960 SEK 6,680 03/22/07 4 USD 1,908 SEK 13,222 03/22/07 -- USD 3,743 SEK 25,372 03/22/07 (82) USD 82 SGD 125 04/30/07 -- USD 77 TWD 2,493 02/22/07 (1) AUD 948 USD 728 02/02/07 (8) AUD 485 USD 375 03/09/07 (2) AUD 1,227 USD 960 03/22/07 9 AUD 2,408 USD 1,908 03/22/07 41 AUD 2,492 USD 1,921 03/22/07 (11) BRL 3,955 USD 1,797 02/02/07 (65) BRL 780 USD 360 04/30/07 (3) BRL 3,955 USD 1,828 05/07/07 (8) CAD 105 USD 89 02/01/07 -- CAD 104 USD 88 02/02/07 -- CAD 624 USD 556 02/02/07 25
See accompanying notes which are an integral part of the schedules of investments. Fixed Income III Fund 103 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- CAD 368 USD 313 02/22/07 -- CAD 624 USD 529 03/09/07 (2) CAD 1,113 USD 954 03/22/07 7 CAD 1,134 USD 960 03/22/07 (5) CAD 2,239 USD 1,908 03/22/07 2 CAD 2,269 USD 1,921 03/22/07 (10) CHF 1,141 USD 953 03/22/07 32 CHF 1,157 USD 952 03/22/07 17 CHF 1,186 USD 960 03/22/07 2 CHF 2,379 USD 1,920 03/22/07 (1) CHF 3,255 USD 2,730 03/22/07 101 EUR 10 USD 13 02/02/07 -- EUR 42 USD 54 02/02/07 (1) EUR 135 USD 173 02/02/07 (3) EUR 170 USD 218 02/02/07 (4) EUR 180 USD 233 02/02/07 (2) EUR 125 USD 162 02/27/07 (2) EUR 2,064 USD 2,680 02/27/07 (13) EUR 1,472 USD 1,970 03/06/07 48 EUR 57 USD 74 03/09/07 -- EUR 177 USD 230 03/09/07 (1) EUR 719 USD 953 03/22/07 13 EUR 735 USD 960 03/22/07 -- EUR 738 USD 960 03/22/07 (4) EUR 741 USD 960 03/22/07 (9) EUR 814 USD 1,062 03/22/07 (1) EUR 1,376 USD 1,800 03/22/07 3 EUR 1,481 USD 1,920 03/22/07 (14) EUR 4,095 USD 5,445 03/22/07 96 GBP 401 USD 763 02/02/07 (25) GBP 23 USD 45 02/22/07 (1) GBP 401 USD 787 03/09/07 (1) GBP 485 USD 954 03/22/07 1 GBP 489 USD 952 03/22/07 (9) GBP 496 USD 960 03/22/07 (14) JPY 5,012 USD 41 02/01/07 -- JPY 8,998 USD 74 02/02/07 (1) JPY 9,810 USD 85 02/02/07 4 JPY 16,206 USD 138 02/02/07 3 JPY 19,480 USD 168 02/02/07 7 JPY 19,620 USD 169 02/02/07 6 JPY 20,195 USD 171 02/02/07 3 JPY 21,109 USD 179 02/02/07 4 JPY 27,180 USD 230 02/02/07 4 JPY 44,327 USD 364 02/02/07 (3)
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- JPY 46,470 USD 406 02/02/07 21 JPY 49,140 USD 422 02/02/07 14 JPY 53,227 USD 437 02/02/07 (5) JPY 59,170 USD 485 02/02/07 (5) JPY 37,996 USD 325 02/15/07 10 JPY 509,386 USD 4,205 02/15/07 (25) JPY 27,267 USD 225 03/09/07 (2) JPY 110,112 USD 953 03/22/07 34 JPY 110,174 USD 953 03/22/07 34 JPY 111,199 USD 952 03/22/07 24 JPY 115,955 USD 960 03/22/07 (7) JPY 229,476 USD 1,920 03/22/07 6 JPY 349,339 USD 2,881 03/22/07 (33) MXN 13,453 USD 1,213 04/12/07 (5) NOK 2,811 USD 437 02/02/07 (13) NOK 666 USD 106 03/09/07 (1) NOK 6,159 USD 960 03/22/07 (29) NZD 275 USD 183 02/02/07 (6) NZD 275 USD 189 03/09/07 -- NZD 1,229 USD 842 03/22/07 (3) NZD 1,360 USD 954 03/22/07 20 PLN 509 USD 168 02/02/07 (1) PLN 509 USD 168 03/09/07 (2) SEK 3,138 USD 437 02/02/07 (14) SEK 6,712 USD 960 03/22/07 (9) SEK 6,742 USD 960 03/22/07 (13) SEK 6,744 USD 960 03/22/07 (13) SEK 19,411 USD 2,863 03/22/07 63 -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (471) ==============
See accompanying notes which are an integral part of the schedules of investments. 104 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INDEX SWAP CONTRACTS - ------------------------------------------------------------------------------------------------------------------------------ UNREALIZED NOTIONAL APPRECIATION FUND RECEIVES COUNTER AMOUNT FUND PAYS TERMINATION (DEPRECIATION) UNDERLYING SECURITY PARTY $ FLOATING RATE DATE $ - ------------------------------ ---------------- --------- ---------------------------- -------------- -------------- Lehman Brothers 1 Month USD LIBOR CMBS Index - AAA Goldman Sachs 2,240 plus 0.050% 02/01/07 11 Turkish Overnight Index Goldman Sachs Tuibon Total Return Citibank 5,277 plus 0.750% 07/17/08 80 Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 1,250 minus 0.030% 09/28/07 (1) Citibank CMBS AAA 10 Year Index CMBS AAA 10 Year Index Citibank 1,750 03/31/07 (2) JP Morgan CMBS AAA 10 Year Index CMBS AAA 10 Year Index JP Morgan 1,500 minus 0.030% 05/31/07 (1) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 2,000 minus 0.080% 04/30/07 (31) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 1,500 minus 0.030% 07/16/07 (2) JP Morgan CMBS AAA 10 Year Index CMBS AAA 10 Year Index JP Morgan 1,000 minus 0.080% 03/31/07 (1) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 1,500 minus 0.050% 06/29/07 (2) Bank of America CMBS AAA 10 Year Index Bank of America 4,000 CMBS AAA 10 Year Index 05/31/07 (4) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 1,000 plus 0.050% 05/31/07 (1) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 1,500 minus 0.050% 07/31/07 (2) Bank of America CMBS AAA 10 Year Index CMBS AAA 10 Year Index Bank of America 1,300 minus 0.080% 06/15/07 (1) -------------- Total Unrealized Appreciation (Depreciation) on Open Index Swap Contracts 43 ==============
See accompanying notes which are an integral part of the schedules of investments. Fixed Income III Fund 105 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INTEREST RATE SWAP CONTRACTS - ---------------------------------------------------------------------------------------------------------------------------- MARKET COUNTER NOTIONAL FUND FUND TERMINATION VALUE PARTY AMOUNT RECEIVES PAYS DATE $ - ----------------------- -------------- -------------------- -------------------- ---------------- ---------------- Bank of America USD 10,700 5.000% Three Month LIBOR 06/21/10 (63) Bank of America USD 12,100 5.473% Three Month LIBOR 06/14/11 102 Bank of America USD 8,500 Three Month LIBOR 5.000% 06/20/12 91 Bank of America USD 4,000 Three Month LIBOR 5.100% 06/20/14 43 Bank of America USD 4,000 5.547% Three Month LIBOR 06/14/16 62 Bank of America USD 2,500 5.627% Three Month LIBOR 06/16/36 57 Barclays Bank PLC EUR 5,720 3.900% Six Month LIBOR 03/20/09 (47) Barclays Bank PLC EUR 530 Six Month LIBOR 4.000% 03/20/37 51 Barclays Bank PLC SEK 66,000 Three Month LIBOR 4.323% 07/20/16 (409) Barclays Bank PLC USD 8,700 5.000% Three Month LIBOR 06/20/09 (39) Barclays Bank PLC Bank PLC EUR 7,150 4.250% Six Month LIBOR 07/20/16 (55) Barclays Bank PLC Bank PLC GBP 480 5.100% Six Month LIBOR 03/20/12 (22) Consumer Price Index BNP Paribas EUR 900 2.090% (France) 10/15/10 14 BNP Paribas EUR 530 Six Month LIBOR 4.000% 03/20/37 51 Citibank EUR 3,390 Six Month LIBOR 3.900% 03/20/12 69 Citibank JPY 976,000 1.500% Six Month LIBOR 03/20/12 54 Citibank JPY 805,000 Six Month LIBOR 1.500% 06/20/12 (35) Citibank JPY 445,000 1.900% Six Month LIBOR 03/20/17 13 Credit Suisse First Boston EUR 21,420 Six Month LIBOR 3.970% 02/23/09 130 Credit Suisse First Boston EUR 23,750 3.950% Six Month LIBOR 02/22/12 (406) Credit Suisse First Boston EUR 920 4.000% Six Month LIBOR 03/20/17 (33) Credit Suisse First Boston EUR 7,370 Six Month LIBOR 4.080% 02/22/22 366 Credit Suisse First Boston EUR 560 4.000% Six Month LIBOR 03/20/37 (54) Credit Suisse First Boston GBP 460 Six Month LIBOR 5.100% 03/20/12 16 Credit Suisse First Boston SEK 30,430 Three Month LIBOR 4.000% 03/20/17 176 Credit Suisse First Boston USD 1,200 5.815% Three Month LIBOR 09/22/36 60 Credit Suisse First Boston USD 1,200 Three Month LIBOR 5.250% 03/20/37 39 Deutsche Bank Bank AUD 1,770 6.200% Six Month LIBOR 03/20/12 3 Deutsche Bank JPY 410,000 1.000% Six Month LIBOR 09/18/08 3 Deutsche Bank JPY 40,000 1.500% Six Month LIBOR 06/20/12 1 Deutsche Bank USD 13,300 5.000% Three Month LIBOR 06/20/09 (59) Deutsche Bank USD 1,010 Three Month LIBOR 5.000% 03/20/12 11 Deutsche Bank USD 510 Three Month LIBOR 5.000% 03/20/12 6 Deutsche Bank USD 500 Three Month LIBOR 5.000% 03/20/12 6 Deutsche Bank USD 1,430 Three Month LIBOR 5.000% 03/20/12 16
See accompanying notes which are an integral part of the schedules of investments. 106 Fixed Income III Fund RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
INTEREST RATE SWAP CONTRACTS, CONTINUED - ---------------------------------------------------------------------------------------------------------------------------- MARKET COUNTER NOTIONAL FUND FUND TERMINATION VALUE PARTY AMOUNT RECEIVES PAYS DATE $ - ----------------------- -------------- -------------------- -------------------- ---------------- ---------------- Deutsche Bank USD 500 Three Month LIBOR 5.000% 03/20/12 6 Deutsche Bank USD 20,100 5.000% Three Month LIBOR 06/20/12 (215) Deutsche Bank USD 2,700 Three Month LIBOR 5.000% 06/20/12 29 Deutsche Bank USD 25,500 5.100% Three Month LIBOR 06/20/14 (275) Deutsche Bank Bank AUD 880 6.200% Six Month LIBOR 03/20/12 2 Deutsche Bank Bank AUD 850 6.200% Six Month LIBOR 03/20/12 1 Deutsche Bank Bank AUD 2,830 6.200% Six Month LIBOR 03/20/12 (25) Deutsche Bank Bank AUD 850 6.200% Six Month LIBOR 03/20/12 1 Deutsche Bank Bank JPY 84,000 2.000% Six Month LIBOR 12/20/16 11 Goldman Sachs JPY 100,000 1.500% Six Month LIBOR 06/20/12 3 Goldman Sachs JPY 38,000 2.000% Six Month LIBOR 12/20/16 5 HSBC GBP 600 4.500% Six Month LIBOR 12/20/07 (12) JP Morgan GBP 200 Six Month LIBOR 4.000% 12/15/36 42 JP Morgan JPY 803,000 Six Month LIBOR 1.700% 03/20/14 (57) JP Morgan JPY 815,000 Six Month LIBOR 1.700% 03/20/14 58 JP Morgan MXN 47,000 7.940% Three Month LIBOR 06/28/09 -- JP Morgan USD 12,700 5.000% Three Month LIBOR 06/20/09 (57) JP Morgan USD 2,700 Three Month LIBOR 5.000% 06/20/12 29 JP Morgan USD 4,100 Three Month LIBOR 5.100% 06/20/14 44 JP Morgan USD 6,400 Three Month LIBOR 5.100% 06/20/14 69 JP Morgan USD 200 5.000% Three Month LIBOR 06/20/37 (14) Lehman Brothers GBP 4,100 4.500% Six Month LIBOR 09/20/09 (185) Lehman Brothers USD 1,100 5.000% Three Month LIBOR 06/20/09 (5) Lehman Brothers Brothers GBP 360 4.900% Six Month LIBOR 03/20/17 (23) Lehman Brothers Brothers GBP 200 Six Month LIBOR 4.300% 03/20/37 23 Lehman Brothers Brothers JPY 42,000 1.700% Six Month LIBOR 03/20/14 2 Merrill Lynch GBP 5,600 4.500% Six Month LIBOR 09/20/09 (253) Merrill Lynch GBP 100 4.000% Six Month LIBOR 12/15/35 2 Morgan Stanley EUR 900 6.000% Six Month LIBOR 06/18/34 158 Morgan Stanley JPY 10,000 2.000% Six Month LIBOR 12/20/16 1 Royal Bank of Scotland CAD 1,000 4.500% Three Month LIBOR 06/15/27 (32) Salomon Smith Barney PLN 9,000 4.665% Six Month LIBOR 01/16/09 (5) UBS JPY 80,000 1.000% Six Month LIBOR 09/18/08 1 UBS USD 3,900 5.000% Three Month LIBOR 06/20/09 (17) UBS JPY 10,000 2.000% Six Month LIBOR 12/20/16 1 ---------------- Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $826 (469) ================
See accompanying notes which are an integral part of the schedules of investments. Fixed Income III Fund 107 RUSSELL INVESTMENT COMPANY FIXED INCOME III FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
CREDIT DEFAULT SWAP CONTRACTS - ----------------------------------------------------------------------------------------------------------------- NOTIONAL MARKET REFERENCE COUNTER AMOUNT FUND RECEIVES TERMINATION VALUE ENTITY PARTY $ FIXED RATE DATE $ - ------------------------------ ---------------- --------- ------------- -------------- ---------------- American International Group JP Morgan 1,100 0.050% 12/20/07 -- Anadarko Petroleum Corp. Goldman Sachs 200 0.150% 03/20/08 -- Brazilian Government Salomon Smith International Bond Barney 1,500 1.500% 08/22/11 38 Brazilian Government International Bond Lehman Brothers 1,400 1.980% 03/20/16 47 Core Investment Grade Bond Bank of America 5,000 0.650% 12/20/16 31 Dow Jones CDX High Volatility Index UBS 5,000 0.900% 06/20/10 68 Dow Jones CDX High Volatility Index Lehman Brothers 925 3.250% 12/20/11 32 Dow Jones CDX High Volatility Index Bank of America 1,000 0.650% 12/20/16 6 Dow Jones CDX High Volatility Index Goldman Sachs 4,000 0.650% 12/20/16 25 Ford Motor Credit Co. JP Morgan 100 2.000% 03/20/07 -- Ford Motor Credit Co. Merrill Lynch 200 1.700% 06/20/07 1 Gaz Capital for Gazprom JP Morgan 1,500 0.415% 11/20/07 -- Mexico Government International Bond JP Morgan 200 0.920% 03/20/16 4 Republic of Indonesia Lehman Brothers 100 0.400% 12/20/08 -- Russia SP MYC Morgan Stanley 100 0.460% 06/20/07 -- Sabre Holdings Corp. Lehman Brothers 400 3.120% 03/20/12 (3) Soft Bank Corp Deutsche Bank 16,000 2.300% 09/20/07 1 The Gap Inc. Lehman Brothers 400 1.240% 12/20/11 2 ---------------- Total Market Value of Open Credit Default Contracts Premiums Paid (Received) - ($128) 252 ================
See accompanying notes which are an integral part of the schedules of investments. 108 Fixed Income III Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 91.6% Austria - 0.2% Raiffeisen International Bank Holding AG 8,900 1,359 ------------ Bermuda - 0.6% Aquarius Platinum, Ltd. 20,500 535 Brilliance China Automotive Holdings, Ltd. (AE) 616,000 129 Credicorp, Ltd. (N) 73,409 3,099 Shangri-La Asia, Ltd. 506,000 1,358 Sinofert Holdings, Ltd. 3,604,000 1,680 TPV Technology, Ltd. 196,000 121 ------------ 6,922 ------------ Brazil - 8.5% All America Latina Logistica SA 254,900 2,760 Aracruz Celulose SA - ADR (N) 26,700 1,479 Banco do Brasil SA 273,400 8,946 Banco Itau Holding Financeira SA - ADR (N) 91,500 3,383 Brasil Telecom Participacoes SA - ADR 65,400 2,757 Centrais Eletricas Brasileiras SA 201,405,400 4,741 Cia Brasileira de Distribuicao Grupo Pao de Acucar - ADR (N) 78,400 2,583 Cia de Bebidas das Americas - ADR 34,700 1,795 Cia de Saneamento Basico do Estado de Sao Paulo 52,500,000 6,674 Cia de Saneamento Basico do Estado de Sao Paulo - ADR (N) 30,633 964 Cia Siderurgica Nacional SA 137,033 4,444 Cia Vale do Rio Doce - ADR 402,200 11,555 Cia Vale do Rio Doce - ADR (N) 216,700 7,353 Companhia de Saneamento de Minas Gerais 72,000 803 Cyrela Brazil Realty SA 149,800 1,386 EDP - Energias do Brasil SA 104,500 1,555 Empresa Brasileira de Aeronautica SA - ADR (N) 22,600 916 Gerdau SA 7,300 104 Gerdau SA - ADR (N) 520,500 8,797 Gol Linhas Aereas Inteligentes SA - ADR (N) 48,700 1,466 Lojas Renner SA 7,500 105 Natura Cosmeticos SA 282,300 3,814 Perdigao SA 100,309 1,275 Petroleo Brasileiro SA - ADR 143,100 13,344 Souza Cruz SA 2,400 45 Tele Norte Leste Participacoes SA - ADR (N) 263,000 3,548
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Unibanco - Uniao de Bancos Brasileiros SA 343,800 3,223 Unibanco - Uniao de Bancos Brasileiros SA - ADR 78,400 7,435 ------------ 107,250 ------------ Canada - 0.2% First Quantum Minerals, Ltd. 32,900 1,745 ------------ Cayman Islands - 1.1% Agile Property Holdings, Ltd. 1,712,000 1,399 ASM Pacific Technology 296,500 1,789 China Resources Land, Ltd. 396,000 398 Focus Media Holding, Ltd. - ADR (AE)(N) 19,700 1,628 Foxconn International Holdings, Ltd. (AE) 385,000 1,151 Global Bio-Chem Technology Group Co., Ltd. 114,000 33 Hutchison Telecommunications International, Ltd. (AE) 727,000 1,751 Kingboard Chemical Holdings, Ltd. 422,500 1,740 Luen Thai Holdings, Ltd. 1,628,000 265 Shui On Land, Ltd. New (AE) 1,410,000 1,188 Sina Corp./China (AE)(N) 34,100 1,220 Solomon Systech International, Ltd. 2,938,100 542 Tencent Holdings, Ltd. 245,000 952 ------------ 14,056 ------------ Chile - 0.6% Banco de Credito e Inversiones 46,400 1,516 Banco Santander Chile SA - ADR 59,000 2,918 Coca-Cola Embonor SA - ADR 97,500 1,030 Embotelladora Andina SA - ADR 62,100 1,126 Lan Airlines SA - ADR (N) 18,600 1,154 ------------ 7,744 ------------ China - 7.0% Angang Steel Co., Ltd. Class H 668,000 1,046 Anhui Conch Cement Co., Ltd. Class H 788,000 2,660 Bank of Communications Co., Ltd. Class H 970,000 1,047 Byd Co., Ltd. Class H (AE) 45,500 160 China Coal Energy Co. (AE) 2,257,600 1,709 China COSCO Holdings Co., Ltd. Class H 3,133,000 2,275
Emerging Markets Fund 109 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- China International Marine Containers Co., Ltd. Class B 350,330 729 China Life Insurance Co., Ltd. Class H 1,113,000 3,250 China Merchants Bank Co., Ltd. (AE) 694,000 1,497 China Petroleum & Chemical Corp. - ADR (N) 56,260 4,706 China Petroleum & Chemical Corp. Class H 14,431,254 12,070 China Shenhua Energy Co., Ltd. 3,439,000 8,413 China Shipping Container Lines Co., Ltd. Class H 1,309,000 402 China Shipping Development Co., Ltd. Class H 1,658,000 2,336 China Southern Airlines Co., Ltd. Class H (AE) 1,786,000 830 China Telecom Corp., Ltd. Class H 12,005,000 5,797 Datang International Power Generation Co., Ltd. Class H 2,058,000 2,090 Guangzhou R&F Properties Co., Ltd. 1,146,000 2,214 Huaneng Power International, Inc. Class H 1,312,000 1,188 Industrial & Commercial Bank of China (AE) 4,517,900 2,621 Jiangxi Copper Co., Ltd. Class H 682,000 693 Maanshan Iron & Steel Class H 2,181,600 1,392 PetroChina Co., Ltd. - ADR (N) 18,523 2,284 PetroChina Co., Ltd. Class H 12,637,176 15,490 Ping An Insurance Group Co. of China, Ltd. Class H 1,051,100 5,075 Shanghai Forte Land Co., Ltd. Class H 1,970,000 732 Shenzhen Expressway Co., Ltd. Class H 270,000 198 Sinopec Shanghai Petrochemical Co., Ltd. Class H 2,519,000 1,233 Sinopec Yizheng Chemical Fibre Co., Ltd. Class H (AE) 628,000 150 Weiqiao Textile Co. Class H 414,500 621 Wumart Stores, Inc. Class H 703,200 620 Yanzhou Coal Mining Co., Ltd. Class H 2,420,000 2,250 ZTE Corp. Class H 185,500 836 ------------ 88,614 ------------ Colombia - 0.4% BanColombia SA 309,722 2,283 BanColombia SA - ADR (N) 99,800 2,969 ------------ 5,252 ------------ Czech Republic - 0.0% Philip Morris CR (AE) 276 142 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Egypt - 1.9% Commercial International Bank 93,384 869 Egyptian Co. for Mobile Services 129,940 3,991 Orascom Construction Industries 178,108 8,128 Orascom Construction Industries - GDR 39,700 3,613 Orascom Telecom Holding SAE 50,103 3,442 Orascom Telecom Holding SAE - GDR (N) 50,800 3,505 ------------ 23,548 ------------ Hong Kong - 3.1% Beijing Enterprises Holdings, Ltd. 944,000 2,055 China Everbright, Ltd. (AE) 380,000 365 China Insurance International Holdings Co., Ltd. (AE) 1,550,000 1,826 China Merchants Holdings International Co., Ltd. 517,000 1,894 China Mobile, Ltd. 1,373,500 12,596 China Mobile, Ltd. - ADR (N) 87,600 4,043 China Netcom Group Corp. Hong Kong, Ltd. 1,762,000 4,392 China Overseas Land & Investment, Ltd. 1,694,000 1,872 China Resources Enterprise 702,000 2,189 China Resources Power Holdings Co. 316,000 495 Citic Pacific, Ltd. 349,000 1,223 Denway Motors, Ltd. 2,982,000 1,257 Guangdong Investment, Ltd. 610,000 311 Guangzhou Investment Co., Ltd. 4,256,000 981 Melco International Development 291,000 616 Shanghai Industrial Holdings, Ltd. 68,000 147 Shenzhen Investment, Ltd. 1,638,000 667 Techtronic Industries Co. 1,340,400 2,060 Travelsky Technology, Ltd. Class H 200,000 336 ------------ 39,325 ------------ Hungary - 1.4% Magyar Telekom Telecommunications PLC 623,160 3,179 MOL Hungarian Oil and Gas PLC 97,747 10,077 MOL Hungarian Oil and Gas PLC - ADR 31,000 3,162 Richter Gedeon Nyrt. (N) 7,100 1,427 ------------ 17,845 ------------
110 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- India - 6.3% Allahabad Bank 243,535 499 Andhra Bank 429,000 855 Bajaj Auto, Ltd. 18,900 1,186 Bank of Baroda 220,000 1,245 Bank of India 30,000 130 BF Utilities, Ltd. (AE) 16,892 1,110 Bharti Tele Ventures, Ltd. (AE) 503,300 8,083 Chennai Petroleum Corp., Ltd. 194,660 945 Container Corp. of India 35,045 1,595 Financial Technologies India, Ltd. 33,600 1,352 GAIL India, Ltd. - GDR 63,000 2,375 Gateway Distriparks, Ltd. 124,867 549 Genesis Indian Investment Co., Ltd. (AE) 619,019 23,027 Grasim Industries, Ltd. 2,793 176 Gujarat Ambuja Cements, Ltd. 522,000 1,623 HDFC Bank, Ltd. - ADR (N) 27,200 2,076 Hindustan Petroleum Corp., Ltd. 24,261 171 Housing Development Finance Corp. 78,100 2,960 I-Flex Solutions, Ltd. 38,900 1,713 ICICI Bank, Ltd. 234,120 4,989 Indiabulls Financial Services, Ltd. 58,232 483 Indiabulls Real Estate, Ltd. (AE) 58,232 467 Indian Overseas Bank 250,000 672 Industrial Development Bank of India, Ltd. 471,000 1,083 Infosys Technologies, Ltd. 976 50 Mahanagar Telephone Nigam 27,692 104 Maruti Udyog, Ltd. 5,827 122 Oil & Natural Gas Corp., Ltd. 72,735 1,501 Oriental Bank of Commerce 111,000 543 Petronet LNG, Ltd. (AE) 846,900 1,000 Reliance Industries, Ltd. 129,810 4,017 State Bank of India, Ltd. - GDR 66,950 4,345 Sun TV, Ltd. 59,191 2,266 Suzlon Energy, Ltd. 107,505 2,782 Tata Consultancy Services, Ltd. 4,333 125 Union Bank of India 118,000 297 Videocon Industries, Ltd. 137,300 1,371 Zee Entertainment Enterprises, Ltd. 278,963 1,979 ------------ 79,866 ------------ Indonesia - 3.2% Aneka Tambang Tbk PT 3,141,646 2,693 Astra Agro Lestari Tbk PT 301,289 437 Astra International Tbk PT 1,987,277 3,243 Bank Central Asia Tbk PT 207,500 116 Bank Danamon Indonesia Tbk PT 1,441,200 934 Bank Mandiri Persero Tbk PT 12,764,403 3,612 Bank Rakyat Indonesia 18,616,572 10,843 Perusahaan Gas Negara PT 1,651,000 1,705 Ramayana Lestari Sentosa Tbk PT 5,957,500 563
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Telekomunikasi Indonesia Tbk PT 13,544,200 14,065 Telekomunikasi Indonesia Tbk PT - ADR 61,600 2,585 ------------ 40,796 ------------ Israel - 2.2% Bank Hapoalim BM 974,800 4,522 Bank Leumi Le-Israel BM 1,186,500 4,653 Check Point Software Technologies (AE)(N) 292,307 6,974 Discount Investment Corp. 2,511 73 IDB Development Corp., Ltd. 8,867 286 Israel Chemicals, Ltd. 471,100 2,907 Partner Communications 10,436 129 Tadiran Communications, Ltd. 13,949 562 Teva Pharmaceutical Industries, Ltd. - ADR (N) 204,400 7,174 ------------ 27,280 ------------ Kazakhstan - 0.3% Halyk Savings Bank Kazakhstan - GDR (AE) 120,000 2,832 Kazkommertsbank - GDR (AE) 55,300 1,233 ------------ 4,065 ------------ Lebanon - 0.0% Solidere - GDR 8,200 137 ------------ Luxembourg - 2.3% Genesis Smaller Companies 381,784 24,651 Tenaris SA 1 -- Tenaris SA - ADR 80,565 3,825 ------------ 28,476 ------------ Malaysia - 1.5% AirAsia BHD (AE) 2,220,300 913 Bumiputra-Commerce Holdings BHD 3,615,342 9,502 Bursa Malaysia BHD 410,400 1,290 DRB-Hicom BHD 184,700 106 Gamuda BHD 57,300 116 Genting BHD 57,400 623 Golden Hope Plantations BHD 33,700 63 IGB Corp. BHD 104,800 68 IOI Corp. BHD 333,700 1,754 KLCC Property Holdings BHD 256,000 233 Malaysia International Shipping Corp. BHD (AE) 43,700 111 Petronas Gas BHD 39,500 102
Emerging Markets Fund 111 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- PLUS Expressways BHD (AE) 137,100 112 Sime Darby BHD 795,700 1,864 SP Setia BHD 167,500 287 TAN Chong Motor Holdings BHD 627,100 240 Tenaga Nasional BHD 525,800 1,848 YTL Corp. BHD 127,300 269 ------------ 19,501 ------------ Mexico - 6.8% Alfa SAB de CV Class A (N) 781,800 5,326 America Movil SA de CV (N) 3,918,700 8,712 America Movil SA de CV Series L 269,500 11,955 Cemex SAB de CV (AE)(N) 4,215,756 14,916 Cemex SAB de CV - ADR (AE) 24,000 849 Corporacion Moctezuma SA de CV 365,800 964 Fomento Economico Mexicano SA de CV - ADR 31,724 3,809 Grupo Aeroportuario del Pacifico SA de CV - ADR 28,100 1,137 Grupo Aeroportuario del Sureste SAB de CV - ADR (N) 21,700 944 Grupo Financiero Banorte SA de CV Class O (N) 1,527,400 6,076 Grupo Mexico SAB de CV 884,400 3,634 Grupo Modelo SA (N) 890,300 4,846 Grupo Televisa SA (N) 454,500 2,684 Grupo Televisa SA - ADR 82,392 2,427 Kimberly-Clark de Mexico SAB de CV Class A 24,500 105 Organizacion Soriana SAB de CV Class B (N) 144,000 1,193 Telefonos de Mexico SA de CV (N) 1,859,900 2,859 Telefonos de Mexico SA de CV Series L 48,000 1,474 Urbi Desarrollos Urbanos SA de CV (AE)(N) 1,543,600 5,500 Wal-Mart de Mexico SA de CV 991,700 4,401 Wal-Mart de Mexico SA de CV - ADR (N) 71,700 3,162 ------------ 86,973 ------------ Netherlands - 0.6% Pyaterochka Holding NV - GDR (AE) 228,063 6,215 Zentiva NV 26,900 1,621 ------------ 7,836 ------------ Oman - 0.1% Bank Muscat SAOG - GDR 178,200 2,290 ------------ Pakistan - 0.6% Engro Chemical Pakistan, Ltd. 1,002,800 3,062 Fauji Fertilizer Co., Ltd. 1,895,322 3,499
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- ICI Pakistan, Ltd. 265,200 562 Pakistan Telecommunication Co., Ltd. 1,152,923 1,049 ------------ 8,172 ------------ Philippines - 0.7% Globe Telecom, Inc. 92,090 2,712 Philippine Long Distance Telephone Co. 75,300 4,050 Philippine Long Distance Telephone Co. - ADR (N) 45,600 2,399 ------------ 9,161 ------------ Poland - 0.6% Bank Pekao SA 29,393 2,453 Bank Zachodni WBK SA 2,631 235 KGHM Polska Miedz SA 105,849 3,216 Polski Koncern Naftowy Orlen 66,900 1,049 Powszechna Kasa Oszczednosci Bank Polski SA 65,877 1,089 ------------ 8,042 ------------ Russia - 6.3% Kalina 15,100 672 LUKOIL - ADR 310,682 24,575 Magnit OAO (AE) 52,100 1,894 Mechel - ADR (N) 77,600 2,196 MMC Norilsk Nickel - ADR 34,433 5,819 Mobile Telesystems - ADR 165,900 8,985 NovaTek OAO - GDR (A) 45,000 2,430 Novolipetsk Steel - GDR 2,270 56 OAO Gazprom 250,000 2,698 OAO Gazprom - ADR (N) 87,011 3,737 OAO Gazprom - ADR 255,200 10,961 Promstroibank St. Petersburg 696,000 1,141 RBC Information Systems (AE) 135,259 1,555 Sberbank RF 2,745 9,059 Seventh Continent 69,600 1,810 TMK OAO (AE) 109,400 952 Unified Energy System - GDR 10,937 1,274 ------------ 79,814 ------------ South Africa - 7.2% ABSA Group, Ltd. 158,975 2,916 African Bank Investments, Ltd. 284,124 1,141 Alexander Forbes, Ltd. (AE) 376,300 844 Anglo Platinum, Ltd. 7,511 944 AngloGold Ashanti, Ltd. 22,600 1,070
112 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- AngloGold Ashanti, Ltd. - ADR (N) 28,134 1,322 Aspen Pharmacare Holdings, Ltd. (AE) 533,400 2,552 Aveng, Ltd. 787,269 4,213 Barloworld, Ltd. 163,375 4,208 Bidvest Group, Ltd. 89,400 1,671 Consol, Ltd. 547,200 1,428 DataTec, Ltd. 270,000 1,253 Edgars Consolidated Stores, Ltd. 405,900 2,271 FirstRand, Ltd. 285,782 910 Foschini, Ltd. 261,994 2,267 Impala Platinum Holdings, Ltd. 246,936 7,097 Investec, Ltd. 170,517 2,031 Lewis Group, Ltd. 20,097 175 Massmart Holdings, Ltd. 96,500 1,014 Metropolitan Holdings, Ltd. 414,744 872 Mittal Steel South Africa, Ltd. 35,835 536 Murray & Roberts Holdings, Ltd. 91,910 601 Nampak, Ltd. 79,926 247 Naspers, Ltd. 139,500 3,517 Network Healthcare Holdings, Ltd. (AE) 1,253,000 2,533 Pick'n Pay Stores, Ltd. 173,454 808 Pretoria Portland Cement Co., Ltd. 34,900 2,039 Reunert, Ltd. 117,668 1,385 Sanlam, Ltd. 2,657,382 6,863 Sasol, Ltd. 294,500 10,009 Standard Bank Group, Ltd. 1,039,896 14,255 Steinhoff International Holdings, Ltd. 757,700 2,613 Tiger Brands, Ltd. 149,901 3,576 Truworths International, Ltd. 440,564 2,098 ------------ 91,279 ------------ South Korea - 12.0% Amorepacific Corp. (AE) 4,724 2,820 CJ Home Shopping 15,703 1,079 Daewoo Engineering & Construction Co., Ltd. (AE) 11,820 223 Daewoo Shipbuilding & Marine Engineering Co., Ltd. (AE) 59,100 1,714 Daum Communications Corp. (AE)(N) 13,918 812 Dongbu Insurance Co., Ltd. 21,870 574 GS Engineering & Construction Corp. 32,324 2,678 Hanjin Shipping Co., Ltd. (AE)(N) 65,300 1,873 Hankook Tire Co., Ltd. (N) 305,997 4,485 Hanwha Chem Corp. (AE)(N) 157,670 2,068 Honam Petrochemical Corp. (AE) 41,100 3,322 Hynix Semiconductor, Inc. (AE) 54,000 1,792 Hyosung Corp. (N)(AE) 56,900 1,602 Hyundai Development Co. (AE) 58,100 3,067 Hyundai Heavy Industries (AE) 903 130 Hyundai Mipo Dockyard (AE) 9,434 1,177 Hyundai Mobis (AE) 42,727 3,463 Hyundai Motor Co. (N) 53,070 3,782
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Hyundai Steel Co. (AE)(N) 89,920 3,142 Industrial Bank of Korea (AE)(N) 237,400 4,375 KCC Corp. 11,624 2,994 Kookmin Bank (AE) 183,106 14,567 Kookmin Bank - ADR 31,400 2,497 Korea Electric Power Corp. (AE) 230,880 10,398 Korea Electric Power Corp. - ADR (N) 24,940 570 Korea Investment Holdings Co., Ltd. 39,850 1,731 Korean Air Lines Co., Ltd. 1,769 63 KT Corp. 80,670 3,676 KT Corp. - ADR 17,100 395 KT&G Corp. 41,537 2,528 LG Household & Health Care, Ltd. 20,740 2,500 LG.Philips LCD Co., Ltd. (AE)(N) 27,000 753 LIG Non-Life Insurance Co., Ltd. (N) 35,500 571 Lotte Shopping Co., Ltd. 4,832 1,881 LS Cable, Ltd. 6,300 223 Orion Corp. (AE) 4,165 1,093 Poongsan Corp. (AE) 56,600 1,145 POSCO 24,981 8,743 Samsung Corp. (N) 89,580 2,883 Samsung Electronics Co., Ltd. (N) 16,250 9,993 Samsung Electronics Co., Ltd. - GDR (p) 18,377 5,564 Samsung Electronics Co., Ltd. - GDR 15,259 3,517 Samsung Fire & Marine Insurance Co., Ltd. 29,150 4,892 Samsung Securities Co., Ltd. (N) 103,100 5,015 Shinhan Financial Group Co., Ltd. (AE)(N) 135,330 7,072 Shinsegae Co., Ltd. 8,930 5,179 SK Corp. 27,579 2,106 SK Telecom Co., Ltd. 13,620 2,893 SK Telecom Co., Ltd. - ADR 14,700 349 Tae Young Corp. (AE) 11,339 796 Woori Finance Holdings Co., Ltd. (AE)(N) 92,750 2,167 ------------ 152,932 ------------ Taiwan - 9.0% Acer, Inc. 473,514 891 Advantech Co., Ltd. 1,106,948 3,496 Asia Cement Corp. 960,640 915 AU Optronics Corp. 2,746,280 3,645 AU Optronics Corp. - ADR (N) 127,617 1,714 Benq Corp. (AE) 2,016,000 992 Cathay Financial Holding Co., Ltd. 934,245 2,071 China Steel Corp. 6,538,920 6,752 China Steel Corp. - GDR 39,673 807
Emerging Markets Fund 113 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Chunghwa Telecom Co., Ltd. 198,120 380 CMC Magnetics Corp. (AE) 6,621,000 2,131 Compal Electronics, Inc. (AE) 2,170,892 1,961 Compal Electronics, Inc. - GDR (AE) 34,470 152 D-Link Corp. 401,600 565 Delta Electronics, Inc. 1,182,850 3,862 Evergreen Marine Corp. Taiwan, Ltd. 810,870 451 Far Eastern Textile Co., Ltd. 1,348,995 1,139 Faraday Technology Corp. 317,987 714 First Financial Holding Co., Ltd. 363,300 265 Formosa Plastics Corp. 1,168,000 1,965 Foxconn Technology Co., Ltd. 213,900 2,553 Gigabyte Technology Co., Ltd. 183,718 137 High Tech Computer Corp. 347,200 5,140 HON HAI Precision Industry Co., Ltd. 1,848,372 12,630 King Yuan Electronics Co., Ltd. 1,352,000 1,041 Macronix International (AE) 3,242,086 1,319 MediaTek, Inc. 565,200 6,162 Mega Financial Holding Co., Ltd. 3,651,000 2,445 Micro-Star International Co., Ltd. 884,470 650 Mitac International 1,435,935 1,744 Nan Ya Plastics Corp. 1,269,710 2,094 Oriental Union Chemical Corp. 68,000 43 Phoenixtec Power Co., Ltd. 565,629 606 POU Chen Corp. 648,000 693 Powerchip Semiconductor Corp. 1 -- Powertech Technology, Inc. 409,000 1,702 Quanta Computer, Inc. 268,710 454 Realtek Semiconductor Corp. (AE) 560,000 898 Ritek Corp. (AE) 2,653,161 681 Siliconware Precision Industries Co. 3,310,625 5,490 Sysware Corp. 64,441 67 Taiwan Cement Corp. 673,357 577 Taiwan Fertilizer Co., Ltd. 63,000 112 Taiwan Mobile Co., Ltd. 2,204,520 2,136 Taiwan Semiconductor Manufacturing Co., Ltd. 8,175,986 16,736 Taiwan Semiconductor Manufacturing Co., Ltd. - ADR (N) 68,391 746 Teco Electric and Machinery Co., Ltd. 1,415,000 692 Tripod Technology Corp. 194,000 769 U-Ming Marine Transport Corp. 715,000 1,036 Uni-President Enterprises Corp. 2,601,000 2,370 United Microelectronics Corp. 5,867,935 3,680 Vanguard International Semiconductor Corp. 1,965,947 1,463 Walsin Lihwa Corp. (AE) 235,000 116 Wintek Corp. 797,630 719 Yieh Phui Enterprise 807,430 336 Yuanta Core Pacific Securities Co. 2,249,000 1,701 ------------ 114,606 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Thailand - 1.6% Airports of Thailand PCL 1,297,400 1,885 Bank of Ayudhya PCL 6,588,900 3,470 Charoen Pokphand Foods PCL 4,318,500 574 CP 7-Eleven PCL 4,849,200 802 Glow Energy PCL 942,500 902 Precious Shipping PCL 136,200 171 PTT Chemical PCL 1,243,032 2,683 PTT PCL 647,600 3,709 Rayong Refinery PCL (AE) 1,780,600 804 Regional Container Lines PCL 962,600 540 Siam City Bank PCL 178,400 83 Siam Commercial Bank PCL 1,077,400 1,829 Thai Airways International PCL 36,100 46 Thai Beverage PCL 16,080,300 2,880 ------------ 20,378 ------------ Turkey - 2.6% Akcansa Cimento AS 75,895 507 Anadolu Efes Biracilik Ve Malt Sanayii AS 194,545 6,363 BIM Birlesik Magazalar AS 21,300 1,264 Cimsa Cimento Sanayi VE Tica 263,875 1,726 Eregli Demir ve Celik Fabrikalari TAS 504,954 3,806 Ford Otomotiv Sanayi AS 143,300 1,365 Hurriyet Gazetecilik AS 461,300 1,358 Ihlas Holding AS (AE) 816,246 290 Migros Turk TAS (AE) 230,523 3,032 Trakya Cam Sanayi AS 281,839 814 Tupras Turkiye Petrol Rafine 140,585 2,499 Turk Hava Yollari (AE) 105,752 549 Turk Sise ve Cam Fabrikalari AS (AE) 14,831 59 Turkiye Garanti Bankasi AS 536,600 2,022 Turkiye Is Bankasi Class C 976,590 4,652 Ulker Gida Sanayi ve Ticaret AS 10,228 29 Vestel Elektronik Sanayi ve Ticaret AS (AE) 114,575 285 Yapi ve Kredi Bankasi (AE) 1,458,077 2,840 ------------ 33,460 ------------ United Kingdom - 1.7% Anglo American PLC 263,496 12,277 Astro All Asia Networks PLC 666,200 1,028 Hikma Pharmaceuticals PLC New 195,100 1,410 Kazakhmys PLC 55,800 1,148 SABMiller PLC 77,500 1,771
114 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Tanjong PLC 19,200 81 Tullow Oil PLC 567,900 4,446 ------------ 22,161 ------------ United States - 1.0% CTC Media, Inc. (AE)(N) 55,700 1,198 NII Holdings, Inc. (AE)(N) 24,500 1,808 Southern Copper Corp. (N) 151,859 9,491 ------------ 12,497 ------------ Venezuela - 0.0% Siderurgica Venezolana Sivensa SACA (AE) 1,306,495 29 ------------ Zimbabwe - 0.0% Delta Corp., Ltd. (B) 1,322,627 270 ------------ TOTAL COMMON STOCKS (cost $777,826) 1,163,823 ------------ PREFERRED STOCKS - 5.2% Brazil - 4.0% Banco Bradesco SA 74,637 3,032 Banco Itau Holding Financeira SA 160,210 5,921 Braskem SA 419,235 3,065 Centrais Eletricas Brasileiras SA 275,316,500 6,222 Cia Brasileira de Distribuicao Grupo Pao de Acucar 39,980,000 1,308 Cia de Tecidos do Norte de Minas - Coteminas 7,256,440 838 Cia Energetica de Minas Gerais 6,500,000 311 Cia Energetica de Sao Paulo (AE) 169,500,000 1,971 Cia Paranaense de Energia (AE) 98,100,000 1,193 Cia Vale do Rio Doce 13,944 394 Duratex SA (AE) 19,200 366 Gerdau SA 19,400 327 Investimentos Itau SA 222,400 1,230 Petroleo Brasileiro SA 374,000 8,253 Tam SA 58,400 1,889 Usinas Siderurgicas de Minas Gerais SA 359,600 13,578 Weg SA 164,800 1,187 ------------ 51,085 ------------ Chile - 0.0% Embotelladora Andina SA 205,300 612 ------------ Colombia - 0.0% BanColombia SA 7,200 54 ------------ Russia - 0.2% Transneft OAO 870 2,062 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- South Korea - 1.0% Hyundai Motor Co. 4,520 186 Samsung Electronics Co., Ltd. 24,919 11,698 ------------ 11,884 ------------ TOTAL PREFERRED STOCKS (cost $43,645) 65,697 ------------
NOTIONAL AMOUNT $ ------------ OPTIONS PURCHASED - 0.2% (Number of Contracts) Brazil - 0.0% Bovespa Index Futures Feb 2007 43,200.00 (BRL) Call (50) 1,017 43 Feb 2007 44,162.84 (BRL) Call (270) 5,614 108 ------------ 151 ------------ South Korea - 0.2% Kospi 200 Index Futures Mar 2007 152.00 (KRW) Call (96) 7,749 1,877 ------------ TOTAL OPTIONS PURCHASED (cost $1,961) 2,028 ------------
Emerging Markets Fund 115 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 2.5% United States - 2.5% Russell Investment Company Money Market Fund 29,903,000 29,903 United States Treasury Bills (c)(z)(sec.) 4.969% due 03/15/07 2,200 2,188 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $32,091) 32,091 ------------ OTHER SECURITIES - 5.2% Russell Investment Company Money Market Fund (X) 16,403,466 16,403 State Street Securities Lending Quality Trust (X) 50,013,030 50,013 ------------ OTHER SECURITIES (cost $66,416) 66,416 ------------ TOTAL INVESTMENTS - 104.7% (identified cost $921,939) 1,330,055 OTHER ASSETS AND LIABILITIES, NET - (4.7%) (59,729) ------------ NET ASSETS - 100.0% 1,270,326 ============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 116 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Hang Seng Index (Hong Kong) expiration date 02/07 (89) 7,292 (64) JSE-40 Index (South Africa) expiration date 03/07 (190) 6,033 272 MSCI Taiwan Index expiration date 02/07 (230) 7,215 (70) --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 138 ===============
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Brazil Bovespa Index Futures Feb 2007 43,200.00 (BRL) Put (50) 1,017 (7) Feb 2007 44,162.84 (BRL) Put (270) 5,614 (38) South Korea Kospi 200 Index Futures Mar 2007 152.00 (KRW) Put (96) 7,749 (598) --------------- Total Liability for Options Written (premiums received $565) (643) ===============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. Emerging Markets Fund 117 RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 924 BRL 2,000 03/20/07 10 USD 1,099 BRL 2,400 03/20/07 22 USD 2,286 BRL 5,000 03/20/07 51 USD 5,258 BRL 11,500 03/20/07 117 USD 72 GBP 37 02/01/07 -- USD 348 GBP 178 02/01/07 2 USD 124 GBP 63 02/02/07 -- USD 349 GBP 178 02/02/07 -- USD 1,232 HKD 9,621 02/05/07 -- USD 1,827 HKD 14,270 02/05/07 -- USD 73 HUF 14,436 02/01/07 1 USD 207 HUF 40,473 02/02/07 (1) USD 84 IDR 758,479 02/05/07 -- USD 434 KRW 400,000 03/20/07 (9) USD 1,066 KRW 1,000,000 03/20/07 (2) USD 3,589 KRW 3,300,000 03/20/07 (81) USD 9,111 KRW 8,400,000 03/20/07 (181) USD 1,119 MXN 12,352 02/01/07 4 USD 19 THB 686 02/01/07 1 USD 29 THB 1,044 02/02/07 1 USD 20 THB 732 02/05/07 1 USD 36 ZAR 258 03/20/07 (1) USD 576 ZAR 4,000 03/20/07 (25) USD 687 ZAR 5,000 03/20/07 2 USD 989 ZAR 7,000 03/20/07 (25) USD 1,759 ZAR 12,500 03/20/07 (37) USD 6,454 ZAR 45,742 03/20/07 (153) BRL 38 USD 18 02/01/07 -- BRL 51 USD 24 02/02/07 -- BRL 4,293 USD 2,018 02/02/07 (3) BRL 1,000 USD 456 03/20/07 (11) BRL 1,000 USD 457 03/20/07 (10) BRL 2,000 USD 917 03/20/07 (18) BRL 2,500 USD 1,163 03/20/07 (5) BRL 3,900 USD 1,784 03/20/07 (38) HKD 156 USD 20 02/01/07 -- HKD 1,670 USD 214 02/01/07 -- HKD 990 USD 127 02/01/07 -- HKD 17,879 USD 2,290 02/02/07 -- IDR 426,578 USD 47 02/05/07 -- IDR 460,720 USD 51 02/05/07 -- KRW 500,000 USD 533 03/20/07 1 KRW 500,000 USD 533 03/20/07 2 KRW 500,000 USD 543 03/20/07 11 KRW 500,000 USD 543 03/20/07 14
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- KRW 800,000 USD 853 03/20/07 2 KRW 1,000,000 USD 1,084 03/20/07 21 KRW 1,000,000 USD 1,080 03/20/07 17 KRW 2,100,000 USD 2,287 03/20/07 54 MYR 142 USD 40 02/02/07 -- MYR 124 USD 35 02/05/07 -- THB 63 USD 2 02/01/07 -- THB 2,452 USD 68 02/01/07 (2) THB 148 USD 4 02/02/07 -- THB 550 USD 15 02/02/07 -- THB 12,606 USD 351 02/02/07 (11) THB 544 USD 15 02/05/07 (1) THB 1,406 USD 39 02/05/07 (1) TRY 38 USD 27 02/02/07 -- ZAR 278 USD 38 02/07/07 -- ZAR 1,300 USD 183 03/20/07 4 ZAR 4,000 USD 559 03/20/07 8 ZAR 4,000 USD 542 03/20/07 (9) ZAR 4,000 USD 571 03/20/07 20 ZAR 4,200 USD 599 03/20/07 20 ZAR 5,000 USD 691 03/20/07 3 ZAR 7,000 USD 993 03/20/07 29 ZAR 9,000 USD 1,262 03/20/07 22 -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (184) ==============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. 118 Emerging Markets Fund RUSSELL INVESTMENT COMPANY EMERGING MARKETS FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
% OF MARKET NET VALUE INDUSTRY DIVERSIFICATION ASSETS $ - ----------------------------------------------------------------------------- Auto and Transportation 3.5 44,317 Consumer Discretionary 4.6 58,802 Consumer Staples 5.2 65,834 Financial Services 23.2 294,982 Health Care 1.3 16,717 Integrated Oils 7.7 97,602 Materials and Processing 18.4 232,785 Miscellaneous 1.9 23,985 Other Energy 3.8 47,781 Producer Durables 1.7 21,875 Technology 10.2 130,007 Utilities 15.3 194,833 Options Purchased 0.2 2,028 Short-Term Investments 2.5 32,091 Other Securities 5.2 66,416 ------------ ------------ Total Investments 104.7 1,330,055 Other Assets and Liabilities, Net (4.7) (59,729) ------------ ------------ Net Assets 100.0 1,270,326 ============ ============
% OF MARKET NET VALUE GEOGRAPHIC DIVERSIFICATION ASSETS $ - ----------------------------------------------------------------------------- Africa 7.2 91,881 Asia 46.3 588,602 Europe 14.1 179,038 Latin America 22.2 281,640 Middle East 4.3 54,178 United Kingdom 1.7 22,244 Other Regions 3.7 46,056 Other Securities 5.2 66,416 ------------ ------------ Total Investments 104.7 1,330,055 Other Assets and Liabilities, Net (4.7) (59,729) ------------ ------------ Net Assets 100.0 1,270,326 ============ ============
A portion of the portfolio has been fair valued as of period end. See accompanying notes which are an integral part of the schedules of investments. Emerging Markets Fund 119 RUSSELL INVESTMENT COMPANY REAL ESTATE SECURITIES FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 97.7% Apartments - 18.1% Apartment Investment & Management Co. Class A (o) 414,025 25,930 Archstone-Smith Trust (o) 1,874,584 118,492 AvalonBay Communities, Inc. (o) 578,100 85,767 BRE Properties, Inc. Class A (o)(N) 192,500 13,361 Camden Property Trust (o) 357,800 28,052 Equity Residential (o)(N) 1,393,700 78,437 Essex Property Trust, Inc. (o)(N) 258,650 37,334 Home Properties, Inc. (o) 69,600 4,475 Mid-America Apartment Communities, Inc. (o) 124,200 7,467 United Dominion Realty Trust, Inc. (o)(N) 471,900 15,474 ------------ 414,789 ------------ Diversified - 5.0% Colonial Properties Trust (o) 156,200 7,677 iStar Financial, Inc. (o) 125,700 6,304 Spirit Finance Corp. (o)(N) 277,600 3,476 Vornado Realty Trust (o) 799,710 97,844 ------------ 115,301 ------------ Free Standing Retail - 0.2% Realty Income Corp. (o) 130,000 3,741 ------------ Health Care - 6.2% Health Care Property Investors, Inc. (o) 638,100 26,322 Health Care REIT, Inc. (o)(N) 536,500 25,113 Healthcare Realty Trust, Inc. (o)(N) 185,800 7,874 LTC Properties, Inc. (o) 266,800 7,524 Nationwide Health Properties, Inc. (o)(N) 1,255,500 41,833 Omega Healthcare Investors, Inc. (o) 288,900 5,238 Senior Housing Properties Trust (o) 258,100 6,716 Ventas, Inc. (o)(N) 473,200 21,885 ------------ 142,505 ------------ Industrial - 6.8% AMB Property Corp. (o) 620,600 37,764 DCT Industrial Trust, Inc. (o) 553,500 6,542 EastGroup Properties, Inc. (o) 70,200 3,843 First Potomac Realty Trust (o) 145,500 4,369 ProLogis (o) 1,608,500 104,553 ------------ 157,071 ------------ Lodging/Resorts - 8.5% Ashford Hospitality Trust, Inc. (o) 200,000 2,462 DiamondRock Hospitality Co. (o) 719,150 13,556 FelCor Lodging Trust, Inc. (o) 233,600 5,156
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Hilton Hotels Corp. 846,150 29,945 Hospitality Properties Trust (o) 67,000 3,270 Host Hotels & Resorts, Inc. (o)(N) 3,606,964 95,476 LaSalle Hotel Properties (o) 200,270 9,535 Starwood Hotels & Resorts Worldwide, Inc. (o) 580,975 36,357 ------------ 195,757 ------------ Manufactured Homes - 0.5% Equity Lifestyle Properties, Inc. (o)(N) 184,100 10,168 ------------ Mixed Industrial/Office - 1.7% Duke Realty Corp. (o) 56,800 2,506 Liberty Property Trust (o) 554,700 28,700 PS Business Parks, Inc. (o) 100,000 7,521 ------------ 38,727 ------------ Office - 17.0% Alexandria Real Estate Equities, Inc. (o)(N) 203,700 22,073 American Financial Realty Trust (o)(N) 355,300 3,972 BioMed Realty Trust, Inc. (o) 373,900 11,153 Boston Properties, Inc. (o)(N) 883,050 111,344 Brandywine Realty Trust (o)(N) 679,721 23,695 Brookfield Properties Corp. 688,800 32,057 Corporate Office Properties Trust (o)(N) 122,000 6,500 Douglas Emmett, Inc. (o) 140,100 3,833 Equity Office Properties Trust (o) 584,350 32,461 Highwoods Properties, Inc. (o) 271,200 11,851 HRPT Properties Trust (o) 590,300 7,686 Kilroy Realty Corp. (o) 229,300 19,912 Mack-Cali Realty Corp. (o) 327,600 18,228 Maguire Properties, Inc. (o) 76,600 3,328 Parkway Properties, Inc. (o)(N) 81,650 4,479 SL Green Realty Corp. (o) 531,700 77,937 ------------ 390,509 ------------ Regional Malls - 15.3% CBL & Associates Properties, Inc. (o) 114,500 5,373 General Growth Properties, Inc. (o) 810,600 49,868 Macerich Co. (The) (o) 730,700 69,804
120 Real Estate Securities Fund RUSSELL INVESTMENT COMPANY REAL ESTATE SECURITIES FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Simon Property Group, Inc. (o) 1,671,900 191,249 Taubman Centers, Inc. (o) 609,956 35,542 ------------ 351,836 ------------ Self Storage - 5.6% Extra Space Storage, Inc. (o)(N) 579,600 11,441 Public Storage, Inc. (o) 1,022,100 111,164 Sovran Self Storage, Inc. (o) 92,400 5,544 ------------ 128,149 ------------ Shopping Centers - 11.0% Cedar Shopping Centers, Inc. (o) 140,000 2,345 Developers Diversified Realty Corp. (o)(N) 825,500 55,408 Federal Realty Investors Trust (o) 660,865 61,738 Kimco Realty Corp. (o)(N) 665,800 33,024 Kite Realty Group Trust (o) 129,900 2,533 Regency Centers Corp. (o) 956,600 83,320 Tanger Factory Outlet Centrs (o)(N) 197,400 8,014 Weingarten Realty Investors (o)(N) 139,900 6,926 ------------ 253,308 ------------ Specialty - 1.8% Digital Realty Trust, Inc. (o)(N) 936,930 33,673 Plum Creek Timber Co., Inc. (o) 200,000 8,050 ------------ 41,723 ------------ TOTAL COMMON STOCKS (cost $1,267,556) 2,243,584 ------------ SHORT-TERM INVESTMENTS - 2.5% Russell Investment Company Money Market Fund 58,114,000 58,114 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $58,114) 58,114 ------------
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- OTHER SECURITIES - 10.5% Russell Investment Company Money Market Fund (X) 59,722,833 59,723 State Street Securities Lending Quality Trust (X) 182,090,770 182,091 ------------ TOTAL OTHER SECURITIES (cost $241,814) 241,814 ------------ TOTAL INVESTMENTS - 110.7% (identified cost $1,567,484) 2,543,512 OTHER ASSETS AND LIABILITIES, NET - (10.7%) (245,061) ------------ NET ASSETS - 100.0% 2,298,451 ============
See accompanying notes which are an integral part of the schedules of investments. Real Estate Securities Fund 121 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- LONG-TERM INVESTMENTS - 71.6% Asset-Backed Securities - 21.6% ACE Securities Corp. (E) Series 2006-HE4 Class A2A 5.380% due 10/25/36 1,097 1,097 American Express Credit Account Master Trust (E) Series 2002-2 Class A 5.430% due 11/16/09 1,000 1,000 AmeriCredit Automobile Receivables Trust Series 2005-AX Class A3 3.630% due 01/06/10 1,010 1,005 Series 2006-RM Class A1 5.370% due 10/06/09 2,000 2,000 Argent Securities, Inc. (E) Series 2006-M2 Class A2A 5.370% due 09/25/36 403 402 Series 2006-W4 Class A2A 5.410% due 05/25/36 2,113 2,113 Asset Backed Funding Certificates (E) Series 2006-HE1 Class A2A 5.380% due 01/25/37 771 772 Asset Backed Securities Corp. Home Equity (E) Series 2002-HE1 Class M1 6.970% due 03/15/32 985 985 Asset Backed Securities Corp. Home Equity Loan Trust (E) Series 2004-HE6 Class A1 5.625% due 09/25/34 588 587 Banc of America Securities Auto Trust Series 2005-WF1 Class A4 4.080% due 04/18/10 3,000 2,947 Bank One Issuance Trust Series 2004-B2 Class B2 4.370% due 04/15/12 2,000 1,956 Bear Stearns Asset Backed Securities, Inc. (E) Series 2004-BO1 Class 1A1 5.520% due 09/25/34 179 179 BMW Vehicle Owner Trust Series 2004-A Class A4 3.320% due 02/25/09 4,950 4,904 Brazos Higher Education Authority, Inc. Series 2005-A Class A5 4.910% due 12/01/40 3,250 3,229 Cabela's Master Credit Card Trust (p) Series 2006-3A Class A1 5.260% due 10/15/14 2,000 1,991
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- California Infrastructure PG&E-1 Series 1997-1 Class A8 6.480% due 12/26/09 2,176 2,189 California Infrastructure SCE-1 Series 1997-1 Class A7 6.420% due 12/26/09 3,550 3,568 Capital Auto Receivables Asset Trust Series 2004-2 Class A2 3.350% due 02/15/08 1,250 1,246 Series 2005-1 Class A4 4.050% due 07/15/09 3,175 3,155 Series 2006-1 Class A3 5.030% due 10/15/09 2,225 2,215 Capital One Auto Finance Trust Series 2005-BSS Class A3 4.080% due 11/15/09 1,834 1,825 Capital One Master Trust Series 2002-2A Class A (E) 5.450% due 01/15/10 2,000 2,000 Series 2002-4A Class A 4.900% due 03/15/10 1,000 999 Capital One Prime Auto Receivables Trust Series 2004-3 Class A4 3.690% due 06/15/10 1,000 979 Series 2004-3 Class B 3.860% due 08/15/11 1,500 1,467 Carmax Auto Owner Trust Series 2004-2 Class A4 3.460% due 09/15/11 2,500 2,447 Series 2005-2 Class A4 4.340% due 08/15/10 2,000 1,962 Caterpillar Financial Asset Trust Series 2006-A Class A3 5.570% due 05/25/10 2,000 2,007 Centex Home Equity Series 2003-C Class AF4 4.960% due 04/25/32 136 135 Chase Credit Card Master Trust (E) Series 2002-1 Class A 5.420% due 06/15/09 2,900 2,900 Chase Manhattan Auto Owner Trust Series 2004-A Class A4 2.830% due 09/15/10 1,682 1,652 Series 2005-A Class A4 3.980% due 04/15/11 1,000 975 Series 2005-A Class CTFS 4.040% due 04/15/11 1,000 987 Series 2006-A Class A3 5.340% due 07/15/10 3,770 3,770
122 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- CIT Equipment Collateral Series 2004-VT1 Class A3 2.200% due 03/20/08 128 128 Series 2005-VT1 Class A3 4.120% due 08/20/08 753 749 CIT Marine Trust Series 1999-A Class A4 6.250% due 11/15/19 551 551 CIT Rv Trust Series 1998-A Class A5 6.120% due 11/15/13 237 237 Citibank Credit Card Issuance Trust Series 2003-A3 Class A3 3.100% due 03/10/10 1,000 976 Series 2003-A4 Class A4 (E) 5.435% due 03/20/09 5,000 5,000 Series 2004-A4 Class A4 3.200% due 08/24/09 3,700 3,656 Series 2005-A7 Class A7 4.750% due 10/22/12 3,725 3,674 Citigroup Mortgage Loan Trust, Inc. (E) Series 2006-WFH Class A1 5.390% due 08/25/36 735 735 Series 2006-WFH Class A1A 5.420% due 01/25/36 1,918 1,918 Community Program Loan Trust Series 1987-A Class A4 4.500% due 10/01/18 1,955 1,924 Countrywide Asset-Backed Certificates (E) Series 2001-BC3 Class A 5.830% due 12/25/31 153 153 Series 2006-15 Class A1 5.460% due 10/25/46 1,044 1,044 Series 2006-16 Class 2A1 5.370% due 12/25/46 447 447 Series 2006-17 Class 2A1 5.370% due 03/25/47 1,013 1,013 Series 2006-23 Class 2A1 5.428% due 11/25/37 4,600 4,599 Credit-Based Asset Servicing and Securitization LLC (E) Series 2006-CB9 Class A1 5.410% due 11/25/36 785 785 Daimler Chrysler Auto Trust Series 2005-A Class A3 3.490% due 12/08/08 1,163 1,157 Series 2005-A Class A4 3.740% due 02/08/10 9,100 8,951 Discover Card Master Trust I Series 2002-2 Class B 5.450% due 10/15/09 1,000 999
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- E-Trade RV and Marine Trust Series 2004-1 Class A3 3.620% due 10/08/18 1,300 1,251 Equity One ABS, Inc. Series 2003-4 Class M1 5.369% due 10/25/34 1,500 1,485 Fannie Mae Grantor Trust (E) Series 2002-T10 Class A1 5.590% due 06/25/32 4,175 4,175 First Franklin Mortgage Loan Asset Backed Certificates (E) Series 2006-FF1 Class A3 5.430% due 11/25/36 1,263 1,264 Series 2007-FF1 Class A2A 5.360% due 01/25/38 1,200 1,201 Ford Credit Auto Owner Trust Series 2005-A Class A3 3.480% due 11/15/08 4,006 3,982 Series 2005-B Class A4 4.380% due 01/15/10 1,500 1,481 Series 2005-B Class B 4.640% due 04/15/10 1,250 1,237 Series 2005-C Class B 4.520% due 09/15/10 1,000 983 Series 2006-A Class A3 5.050% due 03/15/10 535 533 Series 2006-B Class A3 5.260% due 10/15/10 545 544 Franklin Auto Trust Series 2003-1 Class A4 2.270% due 05/20/11 422 419 Fremont Home Loan Trust (E) Series 2006-E Class 2A1 5.410% due 01/25/37 700 700 GE Capital Credit Card Master Note Trust Series 2005-3 Class A 4.130% due 06/15/13 2,000 1,934 Series 2006-1 Class A 5.080% due 09/15/12 1,480 1,475 GE Commercial Equipment Financing LLC (E) Series 2004-1 Class B 5.550% due 12/20/15 468 469 GE Corporate Aircraft Financing LLC (E)(p) Series 2004-1A Class B 6.200% due 01/25/18 328 330
Short Duration Bond Fund 123 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- GE Dealer Floorplan Master Note Trust (E) Series 2004-2 Class B 5.640% due 07/20/09 1,000 1,001 GE-WMC Mortgage Securities LLC (E) Series 2006-1 Class A2A 5.360% due 08/25/36 426 426 GMAC Mortgage Corp. Loan Trust Series 2004-GH1 Class A2 4.390% due 12/25/25 1,346 1,333 GS Auto Loan Trust Series 2006-1 Class A3 5.370% due 12/15/10 1,300 1,300 GSAMP Trust (E) Series 2004-SEA Class A2A 5.640% due 03/25/34 482 482 Series 2007-FM1 Class A2A 5.390% due 12/25/36 900 900 Harley-Davidson Motorcycle Trust Series 2002-2 Class A2 3.090% due 06/15/10 977 972 Series 2003-4 Class A2 2.690% due 04/15/11 1,698 1,665 Series 2006-3 Class A3 5.240% due 01/15/12 4,850 4,844 Honda Auto Receivables Owner Trust Series 2003-3 Class A4 2.770% due 11/21/08 917 916 Series 2003-4 Class A4 2.790% due 03/16/09 556 552 Series 2003-5 Class A4 2.960% due 04/20/09 1,711 1,694 Series 2004-3 Class A4 3.280% due 02/18/10 2,300 2,248 Series 2005-2 Class A4 4.150% due 10/15/10 1,850 1,820 Series 2006-3 Class A3 5.120% due 10/15/10 1,250 1,245 Household Automotive Trust Series 2005-3 Class A2 4.700% due 01/20/09 603 603 Household Private Label Credit Card Master Note Trust I (E) Series 2002-2 Class A 5.490% due 01/18/11 5,000 5,001 HSI Asset Securitization Corp. Trust (E) Series 2006-HE2 Class 2A1 5.370% due 12/25/36 493 493 Hyundai Auto Receivables Trust Series 2004-A Class A3 2.970% due 05/15/09 423 419
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2005-A Class A3 3.980% due 11/16/09 1,500 1,484 Illinois Power Special Purpose Trust Series 1998-1 Class A6 5.540% due 06/25/09 913 913 Indymac Residential Asset Backed Trust (E) Series 2006-E Class 2A1 5.380% due 04/25/37 583 584 JP Morgan Mortgage Acquisition Corp. (E) Series 2006-WMC Class A2 5.370% due 08/25/36 523 522 Lehman XS Trust (E) Series 2006-9 Class A1A 5.420% due 05/25/46 430 430 Long Beach Auto Receivables Trust Series 2005-B Class A3 4.406% due 05/15/10 1,500 1,490 Long Beach Mortgage Loan Trust (E) Series 2004-4 Class 1A1 5.650% due 10/25/34 203 203 Marlin Leasing Receivables LLC (p) Series 2005-1A Class A3 4.630% due 11/17/08 1,650 1,639 Mastr Asset Backed Securities Trust (E) Series 2006-HE5 Class A1 5.410% due 11/25/36 900 901 MBNA Master Credit Card Trust (E) Series 2000-D Class A 5.520% due 09/15/09 3,460 3,461 Merrill Auto Trust Securitization Series 2005-1 Class A3 4.100% due 08/25/09 3,000 2,979 Merrill Lynch Mortgage Investors, Inc. (E) Series 2006-RM5 Class A2A 5.570% due 10/25/37 1,738 1,738 Nelnet Education Loan Funding, Inc. Series 2001-A Class A1 5.760% due 07/01/12 1,392 1,397 Nelnet Student Loan Trust (E) Series 2006-3 Class A1 5.338% due 09/25/12 600 600 Nissan Auto Lease Trust Series 2005-A Class A3 4.700% due 10/15/08 2,899 2,889
124 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Nissan Auto Receivables Owner Trust Series 2004-A Class A4 2.760% due 07/15/09 3,481 3,423 Series 2005-A Class A3 3.540% due 10/15/08 916 911 Series 2005-B Class A3 3.990% due 07/15/09 1,653 1,640 Nomura Home Equity Loan, Inc. Series 2006-AF1 Class A1 6.032% due 10/25/36 1,826 1,824 Onyx Acceptance Grantor Trust Series 2005-A Class A4 3.910% due 09/15/11 2,000 1,963 Option One Mortgage Loan Trust (E) Series 2007-1 Class 2A1 5.370% due 01/25/37 900 900 Park Place Securities, Inc. (E) Series 2004-MCW Class A1 5.632% due 10/25/34 2,588 2,590 PBG Equipment Trust (p) Series 1998-1A Class A 6.270% due 01/20/12 307 307 Peco Energy Transition Trust Series 1999-A Class A6 6.050% due 03/01/09 4,277 4,279 Series 2001-A Class A1 6.520% due 12/31/10 1,248 1,295 PG&E Energy Recovery Funding LLC Series 2005-1 Class A2 3.870% due 06/25/11 2,486 2,443 Series 2005-2 Class A1 4.850% due 06/25/11 969 963 Popular ABS Mortgage Pass-Through Trust Series 2005-3 Class AF3 4.437% due 07/25/35 2,000 1,967 Providian Gateway Master Trust (p) Series 2004-FA Class A 3.650% due 11/15/11 1,200 1,184 Public Service New Hampshire Funding LLC Series 2001-1 Class A2 5.730% due 11/01/10 803 806 Railcar Leasing LLC (p) Series 1997-1 Class A2 7.125% due 01/15/13 920 953 Residential Asset Mortgage Products, Inc. (E) Series 2006-RZ4 Class A1A 5.430% due 10/25/36 1,135 1,135 Residential Asset Securities Corp. (E) Series 2006-KS6 Class A1 5.360% due 08/25/36 592 592
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-KS9 Class AI1 5.420% due 11/25/36 1,055 1,055 Saxon Asset Securities Trust (E) Series 2006-3 Class A1 5.380% due 11/25/36 546 546 SBI Heloc Trust (E)(p) Series 2006-1A Class 1A2A 5.490% due 08/25/36 642 642 Securitized Asset Backed Receivables LLC Trust (E) Series 2007-HE1 Class A2A 5.380% due 12/25/36 1,200 1,199 SLM Student Loan Trust Series 2003-4 Class A5B (p) 3.390% due 03/15/33 3,000 2,893 Series 2006-10 Class A1 (E) 5.345% due 07/25/13 3,900 3,899 Soundview Home Equity Loan Trust (E) Series 2006-EQ1 Class A1 5.400% due 10/25/36 904 904 Series 2006-EQ2 Class A1 1.704% due 01/25/37 3,900 3,900 Structured Asset Securities Corp. (E) Series 2005-WF3 Class A1 5.450% due 07/25/35 322 322 Series 2006-BC3 Class A2 5.370% due 10/25/36 1,113 1,114 Susquehanna Auto Lease Trust (p) Series 2005-1 Class A3 4.430% due 06/16/08 4,000 3,975 Series 2005-1 Class B 4.710% due 07/14/08 1,700 1,686 Series 2006-1 Class A3 5.210% due 03/16/09 1,000 998 Toyota Auto Receivables Owner Trust Series 2003-B Class A4 2.790% due 01/15/10 2,980 2,977 Triad Auto Receivables Owner Trust Series 2006-A Class A3 4.770% due 01/12/11 2,000 1,987 USAA Auto Owner Trust Series 2004-2 Class A3 3.030% due 06/16/08 487 486 Series 2004-2 Class A4 3.580% due 02/15/11 1,700 1,679 Series 2005-2 Class A4 4.170% due 02/15/11 4,000 3,923
Short Duration Bond Fund 125 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2006-4 Class A2 5.160% due 11/16/09 4,000 3,992 Wachovia Auto Owner Trust Series 2004-A Class A3 3.190% due 06/20/08 292 291 Series 2004-A Class A4 3.660% due 07/20/10 7,500 7,429 Series 2004-B Class A3 2.910% due 04/20/09 1,743 1,726 Wells Fargo Financial Auto Owner Trust Series 2004-A Class A4 2.670% due 08/16/10 1,615 1,595 Wells Fargo Home Equity Trust (E) Series 2005-4 Class AI1 (p) 5.470% due 12/25/35 1,082 1,082 Series 2006-3 Class A1 5.380% due 01/25/37 600 600 Whole Auto Loan Trust Series 2003-1 Class B 2.240% due 03/15/10 11 11 World Omni Auto Receivables Trust Series 2006-A Class A2 5.050% due 10/15/08 1,565 1,564 ------------ 254,598 ------------ Certificate of Deposits - 1.0% Bank of Ireland 5.400% due 01/15/10 2,700 2,699 Fortis Bank 5.265% due 04/28/08 1,700 1,700 Nordea Bank Finland PLC 5.308% due 05/28/08 600 599 Royal Bank of Canada 5.420% due 06/30/08 1,600 1,599 Royal Bank of Scotland 5.290% due 07/03/08 2,400 2,399 Societe Generale 5.271% due 06/30/08 2,700 2,705 ------------ 11,701 ------------ Corporate Bonds and Notes - 20.2% Abbott Laboratories (N) 3.500% due 02/17/09 2,000 1,935 Allstate Financial Global Funding (p) 2.500% due 06/20/08 4,080 3,922 Altria Group, Inc. (N) 7.650% due 07/01/08 1,500 1,541 American Express Bank (E) Series BKNT 5.410% due 10/20/09 800 800
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- American Express Centurion Bank Series bknt (E) 5.320% due 05/07/08 700 700 Series BKNT 4.375% due 07/30/09 3,665 3,595 American Express Credit Corp. (E) 5.380% due 11/09/09 1,200 1,200 American Honda Finance Corp. (E)(p) 5.413% due 03/09/09 1,300 1,302 American International Group, Inc. 4.700% due 10/01/10 2,695 2,641 Ameritech Capital Funding Corp. 6.250% due 05/18/09 2,000 2,016 Anadarko Petroleum Corp. (E) 5.760% due 09/15/09 1,200 1,203 Associates Corp. of North America 6.250% due 11/01/08 (N) 3,274 3,323 8.550% due 07/15/09 750 805 AT&T, Inc. (E) 5.464% due 05/15/08 2,600 2,602 Bank of America Corp. 6.375% due 02/15/08 8,652 8,714 5.375% due 06/19/09 (E) 3,800 3,802 Bank One Corp. 2.625% due 06/30/08 5,675 5,469 BankAmerica Corp. 7.125% due 03/01/09 1,500 1,549 Bear Stearns Cos., Inc. (The) 2.875% due 07/02/08 4,700 4,546 5.465% due 08/21/09 (E) 2,300 2,302 5.350% due 02/01/12 2,000 1,995 Series MTNB (E) 5.454% due 03/30/09 900 901 BellSouth Corp. (E) 5.474% due 08/15/08 1,300 1,301 Calyon NY (E) Series YCD 5.340% due 01/16/09 1,200 1,200 Caterpillar, Inc. 7.250% due 09/15/09 3,150 3,292 CIT Group, Inc. 5.000% due 11/24/08 7,050 7,008 4.250% due 02/01/10 2,325 2,251 Citigroup Global Markets Holdings, Inc. (E) Series MTNM 5.390% due 03/07/08 1,600 1,601
126 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Citigroup, Inc. 5.416% due 01/30/09 (E) 2,200 2,201 6.200% due 03/15/09 (N) 5,700 5,802 5.393% due 12/28/09 (E) 2,100 2,100 4.625% due 08/03/10 1,500 1,469 Consolidated Edison Co. of New York, Inc. (N) Series B 7.150% due 12/01/09 2,000 2,091 Credit Suisse First Boston USA, Inc. (E) 5.483% due 12/09/08 3,500 3,506 DaimlerChrysler North America Holding Corp. (E) 5.820% due 08/03/09 800 802 Deutsche Bank Financial, Inc. 7.500% due 04/25/09 3,300 3,437 Exelon Generation Co. LLC 6.950% due 06/15/11 3,650 3,838 FleetBoston Financial Corp. 6.375% due 05/15/08 4,185 4,231 General Electric Capital Corp. 4.000% due 06/15/09 (N) 1,650 1,605 5.430% due 01/20/10 (E) 1,300 1,302 4.875% due 10/21/10 10,050 9,926 5.474% due 10/21/10 (E) 2,000 2,003 Series mtn (E) 5.390% due 10/26/09 1,400 1,400 General Electric Co. (E) 5.393% due 12/09/08 1,000 1,001 GMAC LLC (N) 6.000% due 12/15/11 100 99 Goldman Sachs Group, Inc. 7.350% due 10/01/09 1,000 1,050 5.760% due 10/07/11 (E)(N) 3,000 3,032 Series MTNB (E) 5.690% due 07/23/09 2,000 2,013 Hertz Vehicle Financing LLC (p) Series 2005-2A Class A2 4.930% due 02/25/10 2,500 2,479 HSBC Bank USA NA (E)(N) Series BKNT 5.493% due 06/10/09 300 301 HSBC Finance Corp. 6.500% due 11/15/08 10,130 10,327 5.506% due 12/05/08 (E) 300 301 John Deere Capital Corp. (E) 5.424% due 04/15/08 700 701 5.424% due 07/15/08 800 800 Lehman Brothers Holdings, Inc. 5.400% due 11/24/08 (E) 2,400 2,401 5.475% due 08/21/09 (E)(N) 1,000 1,001 7.875% due 08/15/10 1,000 1,074
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series MTNG 3.950% due 11/10/09 2,800 2,703 5.624% due 11/10/09 (E) 400 402 Lehman Brothers, Inc. (N) 6.625% due 02/15/08 1,500 1,513 Merrill Lynch & Co., Inc. 4.831% due 10/27/08 3,925 3,894 5.577% due 07/25/11 (E) 1,100 1,103 Series MTN (E) 5.464% due 08/14/09 800 800 Series MTNB (E) 5.466% due 01/30/09 1,100 1,101 Series MTNC 5.430% due 06/16/08 (E) 200 200 5.489% due 08/22/08 (E) 600 601 4.125% due 01/15/09 1,000 978 Metropolitan Life Global Funding I (p) 5.750% due 07/25/11 4,000 4,057 Morgan Stanley 3.625% due 04/01/08 3,000 2,938 5.390% due 11/21/08 (E) 600 600 3.875% due 01/15/09 2,000 1,949 Series GMTN (E) 5.485% due 02/09/09 700 701 Series MTN (E) 5.450% due 01/15/10 1,600 1,600 National City Bank Series BKNT 4.250% due 01/29/10 3,375 3,259 Northern States Power Co. 6.875% due 08/01/09 3,000 3,096 Ohio Edison Co. 4.000% due 05/01/08 3,685 3,617 Principal Life Global Funding I (p) 3.625% due 04/30/08 1,250 1,219 2.800% due 06/26/08 5,600 5,399 Prudential Financial, Inc. 3.750% due 05/01/08 1,475 1,438 SBC Communications, Inc. 4.125% due 09/15/09 5,330 5,171 SLM Corp. 3.625% due 03/17/08 7,200 7,059 Unicredito Italiano NY (E) Series YCD 5.370% due 05/29/08 800 798
Short Duration Bond Fund 127 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- US Bank NA Series BKNT 4.125% due 03/17/08 1,600 1,573 Wachovia Bank NA Series BKNT 4.375% due 08/15/08 2,250 2,217 Series DPNT (E) 5.406% due 03/23/09 500 500 Wachovia Corp. 5.625% due 12/15/08 8,200 8,247 5.506% due 10/15/11 (E) 3,400 3,404 Wal-Mart Stores, Inc. (E) 5.265% due 06/16/08 1,700 1,698 Wells Fargo & Co. 4.125% due 03/10/08 (N) 820 809 6.250% due 04/15/08 8,337 8,411 5.460% due 09/15/09 (E) 2,900 2,905 4.200% due 01/15/10 1,600 1,555 5.426% due 03/23/10 (E) 3,000 3,002 Westpac Banking Corp. (E) Series DPNT 5.280% due 06/06/08 500 500 Xcel Energy, Inc. 3.400% due 07/01/08 925 898 ------------ 237,724 ------------ International Debt - 4.4% ANZ National International, Ltd. (E)(p) 5.415% due 08/07/09 2,600 2,598 Arran Residential Mortgages Funding PLC (E)(A) Series 2006-1A Class A1B 5.340% due 04/12/36 733 733 Bank of Ireland (E) 5.375% due 12/19/08 1,200 1,200 Diageo Capital PLC (E) 5.546% due 11/10/08 1,400 1,401 DNB Nor Bank ASA (E)(p) 5.430% due 10/13/09 700 700 Eksportfinans A/S (N) 4.750% due 12/15/08 7,800 7,744 HBOS Treasury Services PLC (p) 3.750% due 09/30/08 1,000 973 ICICI Bank, Ltd. (E)(A) 5.900% due 01/12/10 1,100 1,103 Inter-American Development Bank Series GMTN 5.250% due 06/16/08 2,500 2,504 Interstar Millennium Trust (E) Series 2004-2G Class A 5.560% due 03/14/36 1,316 1,318
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Kreditanstalt fuer Wiederaufbau 5.250% due 05/19/09 (N) 6,080 6,089 4.875% due 10/19/09 2,765 2,747 National Australia Bank, Ltd. (E)(p) 5.393% due 09/11/09 800 800 Royal Bank of Scotland PLC (E)(p) 5.424% due 07/21/08 1,500 1,501 Santander US Debt SA Unipersonal (E)(p) 5.376% due 11/20/08 1,500 1,500 Siemens Financieringsmaatschappij NV (E)(p) 5.424% due 08/14/09 3,700 3,700 Svensk Exportkredit AB (N) 4.625% due 02/17/09 10,305 10,171 Transocean, Inc. (E) 5.591% due 09/05/08 800 801 Unicredit Luxembourg Finance SA (E)(p) 5.410% due 10/24/08 3,900 3,900 VTB Capital SA (E)(p) 5.970% due 08/01/08 700 701 ------------ 52,184 ------------ Mortgage-Backed Securities - 18.9% American Home Mortgage Investment Trust (E) Series 2004-3 Class 5A 4.290% due 10/25/34 1,819 1,782 Series 2004-4 Class 4A 4.390% due 02/25/45 588 578 Banc of America Commercial Mortgage, Inc. Series 2004-2 Class A1 2.764% due 11/10/38 1,071 1,044 Banc of America Funding Corp. Series 2005-D Class A1 (E) 4.114% due 05/25/35 8,650 8,439 Series 2006-2 Class 2A18 5.750% due 03/25/36 3,264 3,269 Banc of America Mortgage Securities, Inc. Series 2004-2 Class 2A1 5.250% due 03/25/34 1,006 998 Series 2004-2 Class 5A1 6.500% due 10/25/31 265 268
128 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Bear Stearns Adjustable Rate Mortgage Trust Series 2003-1 Class 5A1 5.450% due 04/25/33 475 469 Series 2003-8 Class 2A1 (E) 4.782% due 01/25/34 411 405 Bear Stearns Alt-A Trust Series 2005-4 Class 23A1 5.390% due 05/25/35 1,136 1,134 Bear Stearns Asset Backed Securities, Inc. Series 2003-AC3 Class A1 4.000% due 07/25/33 424 414 Bear Stearns Commercial Mortgage Securities Series 1998-C1 Class A1 6.340% due 06/16/30 165 165 Series 1999-C1 Class A2 6.020% due 02/14/31 2,000 2,015 Series 2001-TOP Class A1 5.060% due 11/15/16 407 404 Series 2003-PWR Class A1 3.432% due 05/11/39 596 575 Series 2003-T10 Class A1 4.000% due 03/13/40 1,330 1,283 Series 2003-T12 Class A1 2.960% due 08/13/39 732 713 Bear Stearns Mortgage Funding Trust (E) Series 2007-AR1 Class 2A1 5.390% due 06/26/36 1,400 1,400 Citigroup Commercial Mortgage Trust (E)(p) Series 2006-FL2 Class A1 5.390% due 11/15/36 996 996 Commercial Mortgage Pass Through Certificates Series 1999-1 Class A2 6.455% due 05/15/32 873 882 Series 2004-LB2 Class A2 3.600% due 03/10/39 1,000 967 Countrywide Alternative Loan Trust Series 2003-6T2 Class A1 6.500% due 06/25/33 100 100 Series 2003-J2 Class A1 6.000% due 10/25/33 418 412 Series 2004-12C Class 1A1 5.000% due 07/25/19 2,521 2,462 Series 2005-34C Class 1A6 5.500% due 09/25/35 3,268 3,262 Series 2005-73C Class 1A8 5.500% due 01/25/36 3,061 3,042 Series 2006-OA1 Class A1 (E) 5.500% due 02/20/47 790 789
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Countrywide Home Loan Mortgage Pass Through Trust (E) Series 2005-HYB Class 5A1 5.250% due 02/20/36 1,106 1,098 Credit Suisse First Boston Mortgage Securities Corp. Series 2003-C4 Class A2 3.908% due 08/15/36 1,000 978 Series 2003-CK2 Class A1 3.006% due 03/15/36 626 613 Series 2004-C1 Class A1 2.254% due 01/15/37 678 668 Series 2005-C5 Class A1 5.046% due 08/15/38 3,229 3,200 Deutsche ALT-A Securities, Inc. Alternate Loan Trust (E) Series 2007-AR1 Class A3B 5.390% due 01/25/47 800 800 Fannie Mae 6.000% due 2008 47 47 5.500% due 2009 1,240 1,240 6.000% due 2010 111 111 6.500% due 2010 102 104 6.000% due 2011 136 137 6.500% due 2011 79 80 4.500% due 2013 2,200 2,149 5.000% due 2013 2,215 2,189 5.500% due 2013 280 280 6.000% due 2013 328 332 6.000% due 2014 1,653 1,672 5.500% due 2016 1,031 1,028 5.000% due 2017 87 85 5.500% due 2017 1,639 1,638 6.000% due 2017 175 177 5.000% due 2018 3,719 3,648 5.000% due 2019 463 453 5.000% due 2020 313 306 5.000% due 2021 976 955 5.500% due 2022 1,180 1,169 5.500% due 2033 74 73 6.000% due 2033 27 27 5.500% due 2034 9,121 9,003 4.662% due 2035 (E) 485 481 4.664% due 2035 (E) 3,749 3,702 4.908% due 2035 (E) 31,103 30,811 5.500% due 2035 19,233 18,927
Short Duration Bond Fund 129 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 6.077% due 2041 (E) 917 928 6.027% due 2042 (E) 669 676 Fannie Mae REMICS Series 2003-129 Class PQ 4.500% due 07/25/33 149 148 Series 2003-16 Class BH 5.000% due 03/25/17 2,359 2,330 Series 2003-24 Class PU 3.500% due 11/25/15 230 222 Series 2003-46 Class PQ 3.000% due 06/25/19 651 648 Series 2003-62 Class OD 3.500% due 04/25/26 1,250 1,203 Series 2003-63 Class GU 4.000% due 07/25/33 1,447 1,422 Series 2003-67 Class TA 3.000% due 08/25/17 3,130 2,923 Series 2003-75 Class NB 3.250% due 08/25/18 529 505 Series 2004-17 Class HA 3.000% due 01/25/19 1,877 1,725 Series 2004-21 Class QA 4.000% due 11/25/17 811 806 Federal Home Loan Bank System Series 2004- Class 1 3.920% due 09/25/09 1,390 1,350 Series 2005-058 Class H 4.750% due 10/25/10 3,303 3,267 Federal Home Loan Mortgage Corp. Structured Pass Through Securities (E) Series 2005-63 Class 1A1 5.958% due 02/25/45 1,168 1,166 Freddie Mac 6.000% due 2009 41 41 8.000% due 2010 11 12 6.000% due 2010 78 78 6.000% due 2011 149 150 6.000% due 2032 381 384 6.000% due 2033 665 669 4.919% due 2035 (E) 864 857 Freddie Mac Gold 5.500% due 2008 58 57 6.500% due 2008 42 42 5.500% due 2009 139 139 6.000% due 2009 43 44 6.500% due 2009 201 203 6.000% due 2011 219 221 6.000% due 2013 105 106 5.500% due 2014 458 456 6.000% due 2014 111 112 6.000% due 2016 468 476 5.500% due 2017 809 806 5.000% due 2018 506 496
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- 6.000% due 2028 113 113 5.500% due 2029 793 785 6.000% due 2029 233 234 6.000% due 2031 309 312 Freddie Mac REMICS Series 1993-164 Class PD 4.500% due 09/15/08 18 18 Series 2002-241 Class PE 6.000% due 10/15/21 3,227 3,258 Series 2003-255 Class PB 5.500% due 08/15/30 19 19 Series 2003-258 Class NS 3.250% due 09/15/15 1,116 1,076 Series 2003-261 Class JA 3.760% due 03/15/29 1,182 1,132 Series 2003-262 Class KP 2.870% due 12/15/16 2,591 2,435 Series 2003-263 Class CD 4.000% due 10/15/26 1,500 1,454 Series 2003-268 Class MX 4.000% due 07/15/16 1,946 1,882 Series 2004-276 Class EA 4.500% due 04/15/13 943 935 Series 2004-276 Class NL 3.250% due 03/15/14 3,202 3,076 Series 2004-282 Class EA 4.500% due 11/15/15 2,627 2,586 Series 2004-285 Class BA 4.500% due 02/15/20 1,256 1,231 Series 2005-305 Class AP 5.500% due 01/15/27 2,292 2,292 Series 2006-314 Class LF (E) 5.620% due 05/15/36 600 601 GE Capital Commercial Mortgage Corp. Series 2001-3 Class A1 5.560% due 06/10/38 806 808 Series 2004-C3 Class A1 3.752% due 07/10/39 1,775 1,736 Series 2005-C1 Class A1 4.012% due 06/10/48 1,131 1,109 Ginnie Mae I 6.000% due 12/15/08 45 45 9.500% due 12/15/17 1 1 Ginnie Mae II (E) 5.750% due 07/20/27 100 101 5.000% due 02/20/32 180 181
130 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Government National Mortgage Association Series 2004-78 Class A 3.590% due 11/16/17 2,520 2,448 Greenpoint Mortgage Funding Trust (E) Series 2006-AR6 Class A1A 5.430% due 10/25/46 993 994 Series 2006-AR8 Class 1A1A 5.430% due 01/25/47 800 800 GSR Mortgage Loan Trust Series 2004-7 Class 1A1 3.393% due 06/25/34 1,432 1,429 Harborview Mortgage Loan Trust (E) Series 2006-12 Class 2A11 5.440% due 12/19/36 1,874 1,873 Impac CMB Trust (E) Series 2004-2 Class A2 5.850% due 04/25/34 194 194 Indymac Index Mortgage Loan Trust (E) Series 2006-AR1 Class 1A1A 5.440% due 11/25/46 747 747 JP Morgan Chase Commercial Mortgage Securities Corp. Series 2002-C2 Class A1 4.326% due 12/12/34 710 691 Series 2005-LDP Class A1 4.655% due 08/15/42 1,477 1,456 4.613% due 10/15/42 1,722 1,700 Series 2005-LDP Class A2 4.790% due 10/15/42 2,150 2,106 LB-UBS Commercial Mortgage Trust Series 2003-C1 Class A1 2.720% due 03/15/27 955 935 Series 2003-C3 Class A1 2.599% due 05/15/27 1,493 1,454 Lehman Brothers Floating Rate Commercial Mortgage Trust (E)(p) Series 2006-LLF Class A1 5.400% due 09/15/21 639 639 Mellon Residential Funding Corp. (E) Series 2000-TBC Class A1 5.560% due 06/15/30 1,056 1,056 Merrill Lynch Mortgage Trust Series 2006-C1 Class A1 5.528% due 05/12/39 2,482 2,485 Morgan Stanley Capital I Series 2003-T11 Class A1 3.260% due 06/13/41 1,151 1,125 Series 2004-T13 Class A1 2.850% due 09/13/45 484 471 Series 2005-HQ6 Class A1 4.646% due 08/13/42 1,685 1,657
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Morgan Stanley Dean Witter Capital I Series 2002-HQ Class A2 6.090% due 04/15/34 113 113 Prime Mortgage Trust (E) Series 2004-CL1 Class 1A2 5.720% due 02/25/34 201 201 Series 2004-CL1 Class 2A2 5.720% due 02/25/19 47 47 Residential Accredit Loans, Inc. Series 2003-QS1 Class A1 5.000% due 09/25/18 3,239 3,150 Salomon Brothers Mortgage Securities VII, Inc. Series 2003-UP2 Class A1 4.000% due 12/25/18 863 816 Structured Asset Mortgage Investments, Inc. (E) Series 2002-AR3 Class A1 5.680% due 09/19/32 49 50 Structured Asset Securities Corp. (E) Series 2001-21A Class 1A1 7.213% due 01/25/32 48 48 Thornburg Mortgage Securities Trust (E) Series 2006-6 Class A1 5.430% due 12/25/36 793 792 Vendee Mortgage Trust Series 2001-3 Class J 6.500% due 05/15/08 229 229 Wachovia Auto Owner Trust Series 2005-B Class A4 4.840% due 04/20/11 1,250 1,239 Wachovia Bank Commercial Mortgage Trust Series 2002-C2 Class A2 4.043% due 11/15/34 1,771 1,718 Series 2003-C4 Class A1 3.003% due 04/15/35 1,097 1,073 Series 2006-WL7 Class A1 (E)(p) 5.410% due 09/15/21 3,023 3,023 Washington Mutual, Inc. Series 2002-AR1 Class A6 4.816% due 10/25/32 484 482 Series 2002-AR6 Class A (E) 6.227% due 06/25/42 365 365 Series 2002-AR9 Class 1A (E) 6.158% due 08/25/42 736 736
Short Duration Bond Fund 131 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Series 2004-AR1 Class A2A (E) 5.745% due 11/25/34 1,457 1,463 Series 2005-AR1 Class A1A1 (E) 5.640% due 10/25/45 320 321 Series 2006-AR1 Class 2A (E) 5.846% due 09/25/46 792 792 Wells Fargo Mortgage Backed Securities Trust Series 2005-9 Class 1A1 4.750% due 10/25/35 2,593 2,548 Series 2006-AR2 Class 2A1 4.950% due 03/25/36 1,184 1,166 ------------ 223,168 ------------ Non-US Bonds - 0.0% Landwirtschaftliche Rentenbank 0.650% due 09/30/08 JPY 60,000 497 ------------ United States Government Agencies - 0.4% Federal Home Loan Bank System 3.750% due 08/18/09 1,500 1,454 Series DE08 5.925% due 04/09/08 1,600 1,612 Series HK10 Zero coupon due 04/27/10 531 502 Freddie Mac 5.810% due 04/04/08 1,000 1,006 ------------ 4,574 ------------ United States Government Treasuries - 5.1% United States Treasury Notes 3.875% due 05/15/09 9,500 9,291 4.250% due 11/15/14 52,866 50,923 ------------ 60,214 ------------ TOTAL LONG-TERM INVESTMENTS (cost $852,705) 844,660 ------------ PREFERRED STOCKS - 0.2% Financial Services - 0.2% DG Funding Trust (E)(A) 219 2,307 ------------ TOTAL PREFERRED STOCKS (cost $2,307) 2,307 ------------
NOTIONAL MARKET AMOUNT VALUE $ $ - ----------------------------------------------------------------------------- OPTIONS PURCHASED - 0.1% (Number of Contracts) Eurodollar Futures Mar 2007 92.00 Put (292) 67,160 2 Jun 2007 91.00 Put (201) 45,728 1
NOTIONAL MARKET AMOUNT VALUE $ $ - ----------------------------------------------------------------------------- Jun 2007 91.25 Put (316) 72,088 2 Sep 2007 91.75 Put (60) 13,763 -- Dec 2007 91.25 Put (777) 177,253 5 Mar 2008 91.75 Put (450) 103,219 3 Swaptions (Fund Pays/Fund Receives) EUR Three Month LIBOR/ EUR 3.96% Jul 2007 0.00 Call (1) 3,910 2 GBP Three Month LIBOR/ GBP 5.08% Jun 2007 0.00 Call (1) 1,965 -- GBP Six Month LIBOR/ GBP 5.08% Jun 2007 0.00 Call (1) 3,144 -- USD Three Month LIBOR/ USD 5.17% Feb 2007 0.00 Call (1) 9,500 -- USD Three Month LIBOR/ USD 5.08% Apr 2007 0.00 Call (1) 6,900 8 USD Six Month LIBOR/ USD 5.00% Apr 2008 0.00 Call (1) 27,800 164 USD Three Month LIBOR/ USD 5.20% May 2007 0.00 Call (1) 20,800 40 USD Three Month LIBOR/ USD 5.25% Jun 2007 0.00 Call (1) 18,000 51 USD Six Month LIBOR/ USD 4.85% Jul 2007 0.00 Call (1) 20,000 2 USD Three Month LIBOR/ USD 4.90% Jul 2007 0.00 Call (1) 23,000 161 USD Three Month LIBOR/ USD 5.25% Jul 2007 0.00 Call (1) 18,000 69 USD Three Month LIBOR/ USD 4.90% Aug 2007 0.00 Call (2) 21,000 96 ------------ TOTAL OPTIONS PURCHASED (cost $689) 606 ------------
132 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 27.0% Abbey National NA LLC 5.225% due 03/07/07 18,400 18,339 Allstate Financial Global Funding (p) 5.250% due 02/01/07 3,100 3,100 American General Finance Corp. (E) Series MTNG 5.406% due 03/23/07 200 200 ASIF Global Financing XVIII (p) 3.850% due 11/26/07 2,984 2,946 Bank of America Corp. 5.230% due 03/20/07 7,900 7,868 Bank of Montreal 7.800% due 04/01/07 2,500 2,508 Bank One NA Series BKNT 3.700% due 01/15/08 1,470 1,449 Barclays Bank PLC 5.320% due 01/16/08 8,800 8,799 Barclays US Funding Corp. 5.250% due 02/20/07 7,800 7,778 BellSouth Corp. (E) 5.499% due 11/15/07 1,200 1,201 BNP Paribas 5.293% due 07/03/07 3,900 3,898 BNP Paribas Financial, Inc. 5.228% due 02/22/07 11,670 11,634 British Aerospace Finance, Inc. (p) 7.000% due 07/01/07 900 904 British Telecommunications PLC 7.000% due 05/23/07 1,700 1,706 Capital One Auto Finance Trust Series 2006-C Class A1 5.340% due 12/14/07 539 539 CIT Group, Inc. (E)(N) 5.595% due 09/20/07 3,800 3,806 Citigroup, Inc. (E) 5.430% due 06/04/07 1,000 1,000 Daimlerchrysler NA Holding Corp. 5.345% due 06/22/07 2,700 2,642 Dexia Delaware LLC 5.260% due 02/01/07 13,370 13,334 Federal Farm Credit Bank Series 1984- 12.250% due 02/01/07 864 864 Federal Home Loan Bank Discount Note (c)(z) Zero Coupon due 02/23/07 4,000 3,988 FedEx Corp. (E) 5.455% due 08/08/07 800 801 Ford Motor Credit Co. 7.750% due 02/15/07 (N) 200 200 6.315% due 03/21/07 (E) 2,800 2,800 8.371% due 11/02/07 (E)(N) 200 203
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- France Treasury Bills BTF Zero Coupon due 04/05/07 1,300 1,684 Freddie Mac Gold 4.000% due 2007 731 724 4.000% due 2008 613 601 4.500% due 2008 661 657 General Electric Capital Corp. 5.200% due 07/30/07 8,300 8,290 Ginnie Mae I 7.000% due 11/15/07 1 1 Goldman Sachs Group, Inc. (E) 5.495% due 10/05/07 2,000 2,002 HBOS Treasury Services PLC 5.235% due 03/15/07 8,665 8,613 3.500% due 11/30/07 (p) 2,000 1,969 HSBC Bank USA 5.230% due 04/23/07 1,300 1,285 HSBC Finance Corp. (E) 5.410% due 02/28/07 3,200 3,200 Inter-American Development Bank 6.375% due 10/22/07 5,305 5,347 International Lease Finance Corp. 5.625% due 06/01/07 1,600 1,601 Series MTNP 3.125% due 05/03/07 2,200 2,188 JP Morgan Chase & Co. 5.224% due 03/28/07 11,200 11,111 MGM Mirage 9.750% due 06/01/07 1,200 1,214 National Rural Utilities Cooperative Finance Corp. (N) Series MTNC 6.500% due 03/01/07 2,200 2,201 New York Life Global Funding (E)(p) 5.460% due 02/26/07 2,500 2,500 Ontario Electricity Financial Corp. 6.100% due 01/30/08 4,000 4,026 Pepco Holdings, Inc. 5.500% due 08/15/07 400 400 Pricoa Global Funding I (E)(p) 5.457% due 01/25/08 1,400 1,402 Principal Life Global Funding I (p) 5.125% due 06/28/07 2,000 1,997 Province of New Brunswick Canada 3.500% due 10/23/07 3,671 3,622 Russell Investment Company Money Market Fund 80,110,553 80,110
Short Duration Bond Fund 133 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Santander US Debt SA Universal (E)(p) 5.375% due 09/21/07 500 500 Siemens Capital Co. LLC 5.220% due 02/22/07 11,690 11,654 Skandinaviska Enskilda Banken 5.273% due 07/06/07 3,400 3,399 Societe Generale 5.258% due 06/11/07 600 600 Societe Generale NA 5.225% due 05/10/07 19,470 19,232 Texas Eastern Transmission, LP 5.250% due 07/15/07 2,900 2,893 TIAA Global Markets, Inc. (p) 5.000% due 03/01/07 3,625 3,624 UBS Financial Del LLC 5.225% due 06/01/07 20,100 19,927 United States Treasury Bills (c)(z)(sec.) 4.921% due 03/15/07 250 249 4.926% due 03/15/07 950 945 4.932% due 03/15/07 1,500 1,492 4.939% due 03/15/07 30 30 4.967% due 03/15/07 100 99 US Bancorp Series MTNN 5.100% due 07/15/07 1,650 1,647 Wachovia Corp. (E) Series * 5.410% due 07/20/07 3,500 3,502 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $319,191) 319,045 ------------ OTHER SECURITIES - 1.8% Russell Investment Company Money Market Fund (X) 5,343,576 5,344 State Street Securities Lending Quality Trust (X) 16,292,191 16,292 ------------ TOTAL OTHER SECURITIES (cost $21,636) 21,636 ------------ TOTAL INVESTMENTS - 100.7% (identified cost $1,196,528) 1,188,254 OTHER ASSETS AND LIABILITIES, NET - (0.7%) (8,666) ------------ NET ASSETS - 100.0% 1,179,588 ============
See accompanying notes which are an integral part of the schedules of investments. 134 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Euribor Futures expiration date 09/07 (1) 312 (1) expiration date 12/07 (35) 10,929 (4) Eurodollar Futures (CME) expiration date 06/07 (137) 32,419 (66) expiration date 09/07 (1,081) 256,048 (1,031) expiration date 12/07 (1,476) 349,941 (1,099) expiration date 03/08 (440) 104,379 (292) expiration date 06/08 (26) 6,170 3 expiration date 09/08 (26) 6,172 2 expiration date 12/08 (111) 26,350 (22) LIBOR Futures expiration date 06/07 (14) 3,238 (20) expiration date 09/07 (19) 4,394 (27) expiration date 12/07 (16) 3,701 (22) expiration date 06/08 (11) 2,550 -- United States Treasury 2 Year Notes expiration date 03/07 (241) 49,066 (199) Short Positions United States Treasury Bonds expiration date 03/07 (248) 27,311 807 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts (1,971) ===============
NOTIONAL MARKET OPTIONS WRITTEN AMOUNT VALUE (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Eurodollar Futures Mar 2007 94.75 Put (13) 3,079 (4) Swaptions (Fund Pays/Fund Receives) EUR Three Month LIBOR/ EUR 4.100% Jul 2007 0.00 Call (1) 1,303 (3) GBP Three Month LIBOR/ GBP 4.850% Jun 2007 0.00 Call (1) 589 -- GBP Six Month LIBOR/ GBP 4.850% Jun 2007 0.00 Call (1) 982 (1) USD Three Month LIBOR/ USD 5.240% Feb 2007 0.00 Call (1) 4,100 (2) USD Three Month LIBOR/ USD 5.220% Apr 2007 0.00 Call (1) 3,000 (17) USD Three Month LIBOR/ USD 5.320% May 2007 0.00 Call (1) 9,100 (77) USD Three Month LIBOR/ USD 5.000% Jul 2007 0.00 Call (1) 10,000 (33) USD Three Month LIBOR/ USD 5.370% Jul 2007 0.00 Call (1) 8,000 (93) USD Six Month LIBOR/ USD 4.950% Jul 2007 0.00 Call (1) 4,200 (62) USD Three Month LIBOR/ USD 4.900% Aug 2007 0.00 Call (1) 3,000 (10) USD Three Month LIBOR/ USD 5.000% Aug 2007 0.00 Call (1) 1,000 (5) USD Three Month LIBOR/ USD 5.100% Feb 2008 0.00 Call (1) 12,000 (107) --------------- Total Liability for Options Written (premiums received $592) (414) ===============
See accompanying notes which are an integral part of the schedules of investments. Short Duration Bond Fund 135 RUSSELL INVESTMENT COMPANY SHORT DURATION BOND FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
FOREIGN CURRENCY EXCHANGE CONTRACTS UNREALIZED APPRECIATION AMOUNT AMOUNT SETTLEMENT (DEPRECIATION) SOLD BOUGHT DATE $ - ------------------- -------------------- ----------- -------------- USD 11 GBP 5 02/01/07 -- USD 79 GBP 40 02/22/07 -- EUR 1,699 USD 2,206 02/27/07 (12) GBP 107 USD 207 02/22/07 (3) JPY 27,292 USD 225 02/15/07 (1) JPY 31,325 USD 268 02/15/07 8 -------------- Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts (8) ==============
INTEREST RATE SWAP CONTRACTS - --------------------------------------------------------------------------------------------------------------------------- MARKET COUNTER NOTIONAL TERMINATION VALUE PARTY AMOUNT FUND RECEIVES FUND PAYS DATE $ - ----------------------- -------------- ------------------- -------------------- ---------------- ---------------- Consumer Price Index BNP Paribas EUR 1,200 2.090% (France) 10/15/10 19 Lehman Brothers GBP 1,500 4.500% Six Month LIBOR 09/20/09 (68) Merrill Lynch GBP 1,600 4.500% Six Month LIBOR 09/20/09 (72) UBS USD 42,500 5.000% Three Month LIBOR 06/20/09 (190) ---------------- Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $99 (311) ================
CREDIT DEFAULT SWAP CONTRACTS - -------------------------------------------------------------------------------------------------------------- NOTIONAL MARKET REFERENCE COUNTER AMOUNT FUND RECEIVES TERMINATION VALUE ENTITY PARTY $ FIXED RATE DATE $ - ------------------------------ ---------------- --------- -------------- -------------- ------------ Brazilian Government International Bond Lehman Brothers 1,900 0.240% 11/20/07 1 Brazilian Government International Bond Lehman Brothers 3,200 1.120% 11/20/11 25 Dow Jones CDX High Volatility 4 Index Bank of America 2,000 0.650% 12/20/16 13 Ford Motor Credit Co. Merrill Lynch 3,200 1.700% 06/20/07 14 Gaz Capital for Gazprom JP Morgan 2,700 0.415% 11/20/07 1 Gaz Capital for Gazprom Morgan Stanley 1,400 0.860% 11/20/11 6 Republic of Indonesia Royal Bank of Scotland 1,000 0.400% 12/20/08 -- Republic of Panama Deutsche Bank 300 0.250% 12/20/08 -- Russia Government International Bond Merrill Lynch 1,000 0.305% 12/20/08 -- SoftBank Corp. Deutsche Bank 30,000 2.300% 09/20/07 2 ------------ Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($11) 62 ============
See accompanying notes which are an integral part of the schedules of investments. 136 Short Duration Bond Fund RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 95.8% Auto and Transportation - 4.1% Arctic Cat, Inc. (N) 4,800 89 CH Robinson Worldwide, Inc. (N) 12,120 643 Expeditors International Washington, Inc. 32,000 1,366 FedEx Corp. (N) 12,350 1,363 Fuel Systems Solutions, Inc. (AE)(N) 7,100 158 Grupo Aeroportuario del Centro Norte Sab de CV - ADR (AE) 3,600 87 Grupo Aeroportuario del Sureste SAB de CV - ADR 2,000 87 Keystone Automotive Industries, Inc. (AE) 2,900 104 Union Pacific Corp. 3,600 364 United Parcel Service, Inc. Class B 40,900 2,956 US Airways Group, Inc. (AE)(N) 6,164 345 ------------ 7,562 ------------ Consumer Discretionary - 20.7% Activision, Inc. (AE)(N) 7,300 124 Advance Auto Parts, Inc. 6,200 235 AFC Enterprises (AE)(N) 5,100 85 AMN Healthcare Services, Inc. (AE)(N) 6,300 163 Bare Escentuals, Inc. (AE)(N) 1,700 62 Bright Horizons Family Solutions, Inc. (AE)(N) 2,000 78 Buca, Inc. (AE)(N) 19,900 113 Buffalo Wild Wings, Inc. (AE)(N) 2,700 137 Casual Male Retail Group, Inc. (AE) 12,000 150 Coach, Inc. (AE) 18,450 846 Costco Wholesale Corp. 12,100 680 Crown Media Holdings, Inc. Class A (AE)(N) 12,100 49 Deckers Outdoor Corp. (AE)(N) 3,400 198 dELIA*s, Inc. (AE)(N) 10,100 104 Design Within Reach, Inc. (AE)(N) 14,900 81 DeVry, Inc. (N) 5,000 141 Diamond Management & Technology Consultants, Inc. Class A (N) 10,800 135 Dolby Laboratories, Inc. Class A (AE) 3,500 117 Dollar General Corp. (N) 13,000 220 eBay, Inc. (AE) 106,200 3,440 Electronic Arts, Inc. (AE) 53,070 2,653 Ezcorp, Inc. Class A (AE)(N) 9,000 151 Gap, Inc. (The) (N) 16,000 307 Google, Inc. Class A (AE) 11,589 5,810 Gray Television, Inc. (N) 12,400 111 Great Wolf Resorts, Inc. (AE)(N) 12,000 169 Houston Wire & Cable Co. (AE)(N) 7,700 182 Iconix Brand Group, Inc. (AE)(N) 6,082 121 International Game Technology 60,380 2,624 ITT Educational Services, Inc. (AE)(N) 1,900 147
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Las Vegas Sands Corp. (AE) 10,540 1,097 Leapfrog Enterprises, Inc. Class A (AE)(N) 22,200 238 LIFE TIME FITNESS, INC. (AE)(N) 1,800 98 Local.com Corp. (AE)(N) 9,800 40 Lowe's Cos., Inc. 44,300 1,493 MGM Mirage (AE) 25,400 1,777 Multimedia Games, Inc. (AE)(N) 11,100 115 New Frontier Media, Inc. 10,600 97 News Corp. Class A 61,580 1,432 On Assignment, Inc. (AE)(N) 5,400 70 Parlux Fragrances, Inc. (AE)(N) 19,300 112 Revlon, Inc. Class A (AE)(N) 75,500 97 Sears Holdings Corp. (AE)(N) 1,900 336 Sharper Image Corp. (AE)(N) 7,600 74 Staples, Inc. 156,400 4,023 Starbucks Corp. (AE) 59,716 2,086 Starwood Hotels & Resorts Worldwide, Inc. (o) 10,980 687 Take-Two Interactive Software, Inc. (AE)(N) 3,600 63 Target Corp. 2,768 170 TeleTech Holdings, Inc. (AE)(N) 3,400 92 Time Warner, Inc. 19,800 433 Topps Co., Inc. (The) (N) 14,900 147 Urban Outfitters, Inc. (AE)(N) 28,600 698 Valuevision Media, Inc. Class A (AE)(N) 9,700 119 Viacom, Inc. Class A (AE) 8,700 354 Wal-Mart Stores, Inc. 42,800 2,041 WebSideStory, Inc. (AE)(N) 10,800 155 Weight Watchers International, Inc. 21,060 1,138 WMS Industries, Inc. (AE)(N) 1,700 67 ------------ 38,782 ------------ Consumer Staples - 9.8% Altria Group, Inc. 9,760 853 Boston Beer Co., Inc. Class A (AE)(N) 2,600 91 Coca-Cola Co. (The) 26,815 1,284 Colgate-Palmolive Co. 18,900 1,291 PepsiCo, Inc. 74,821 4,881 Procter & Gamble Co. 80,060 5,193 Sysco Corp. 33,300 1,151 Walgreen Co. 49,000 2,220 Whole Foods Market, Inc. 14,900 644
Select Growth Fund 137 RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Wild Oats Markets, Inc. (AE)(N) 10,200 148 WM Wrigley Jr Co. (N) 11,110 572 ------------ 18,328 ------------ Financial Services - 11.3% Advent Software, Inc. (AE)(N) 7,000 250 American Express Co. 12,200 710 American International Group, Inc. 18,048 1,235 Automatic Data Processing, Inc. 36,600 1,747 Charles Schwab Corp. (The) 48,860 924 Chicago Mercantile Exchange Holdings, Inc. Class A 5,480 3,087 First Cash Financial Services, Inc. (AE)(N) 2,700 63 GFI Group, Inc. (AE)(N) 1,000 64 Goldman Sachs Group, Inc. 6,810 1,445 HealthExtras, Inc. (AE)(N) 4,400 113 Hypercom Corp. (AE)(N) 16,700 101 IntercontinentalExchange, Inc. (AE)(N) 17,000 2,219 Merrill Lynch & Co., Inc. 4,500 421 MGIC Investment Corp. (N) 3,200 198 Moody's Corp. 22,000 1,574 Morgan Stanley 4,600 381 Paychex, Inc. (N) 48,600 1,945 Pico Holdings, Inc. (AE)(N) 3,800 163 PMI Group, Inc. (The) (N) 4,900 234 State Street Corp. 30,160 2,143 UBS AG 13,120 827 Western Union Co. (The) 59,200 1,323 ------------ 21,167 ------------ Health Care - 17.5% Abbott Laboratories 5,600 297 Albany Molecular Research, Inc. (AE)(N) 7,900 80 Allergan, Inc. 29,390 3,430 Amedisys, Inc. (AE)(N) 2,666 86 American Medical Systems Holdings, Inc. (AE)(N) 4,300 86 Amgen, Inc. (AE) 23,446 1,650 Applera Corp. - Celera Group (AE) 8,700 138 Baxter International, Inc. 41,210 2,046 Biogen Idec, Inc. (AE) 8,100 392 Boston Scientific Corp. (AE)(N) 9,443 174 Bruker BioSciences Corp. (AE) 20,400 152 Celgene Corp. (AE)(N) 27,283 1,465 Cerner Corp. (AE)(N) 2,500 112 Charles River Laboratories International, Inc. (AE) 2,500 112 Cholestech Corp. (AE)(N) 5,400 91 Covance, Inc. (AE) 1,400 86 Cutera, Inc. (AE)(N) 2,400 68 DaVita, Inc. (AE)(N) 2,600 142
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- DOV Pharmaceutical, Inc. (AE)(N) 40,600 18 Genentech, Inc. (AE) 30,200 2,639 Genzyme Corp. (AE) 21,500 1,413 Gilead Sciences, Inc. (AE) 35,285 2,269 GTx, Inc. (AE)(N) 9,100 169 Healthcare Services Group (N) 4,100 119 Healthways, Inc. (AE)(N) 1,100 50 Hemispherx Biopharma, Inc. (AE)(N) 19,200 40 Henry Schein, Inc. (AE)(N) 1,900 96 Humana, Inc. (AE) 3,075 171 Illumina, Inc. (AE)(N) 1,300 53 Intralase Corp. (AE)(N) 5,200 128 Inverness Medical Innovations, Inc. (AE)(N) 2,600 107 Johnson & Johnson 24,100 1,610 Medco Health Solutions, Inc. (AE) 12,205 723 Medtronic, Inc. 24,978 1,335 Merck & Co., Inc. 7,590 340 Neose Technologies, Inc. (AE) 16,300 36 NuVasive, Inc. (AE)(N) 3,700 90 Oxigene, Inc. (AE)(N) 10,400 45 Palatin Technologies, Inc. (AE)(N) 18,700 44 Phase Forward, Inc. (AE) 4,100 55 PolyMedica Corp. (N) 1,500 60 PSS World Medical, Inc. (AE)(N) 2,900 58 Schering-Plough Corp. 7,500 187 Sepracor, Inc. (AE)(N) 2,800 160 Stryker Corp. 18,000 1,115 Tercica, Inc. (AE)(N) 17,800 92 Teva Pharmaceutical Industries, Ltd. - ADR 35,100 1,232 Thermo Fisher Scientific, Inc. (AE) 36,120 1,728 UnitedHealth Group, Inc. 67,980 3,553 Ventana Medical Systems, Inc. (AE) 1,900 80 WellPoint, Inc. (AE) 3,061 240 Wyeth 3,900 193 Zimmer Holdings, Inc. (AE) 21,000 1,769 Zoll Medical Corp. (AE)(N) 2,500 157 ------------ 32,781 ------------ Materials and Processing - 2.5% Alcoa, Inc. (N) 6,900 223 Archer-Daniels-Midland Co. 20,335 651 Caraustar Industries, Inc. (AE)(N) 15,300 122 EI Du Pont de Nemours & Co. 4,200 208 Harsco Corp. 1,300 112 Housevalues, Inc. (AE)(N) 20,100 105
138 Select Growth Fund RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Insituform Technologies, Inc. Class A (AE) 4,400 123 Monsanto Co. 24,630 1,357 Praxair, Inc. 26,000 1,639 SAIC, Inc. (AE)(N) 5,900 109 Sequenom, Inc. (AE)(N) 18,800 87 ------------ 4,736 ------------ Miscellaneous - 3.3% 3M Co. 3,000 223 Foster Wheeler, Ltd. (AE)(N) 2,900 155 General Electric Co. 153,028 5,517 Textron, Inc. 3,461 322 ------------ 6,217 ------------ Other Energy - 1.5% Baker Hughes, Inc. (N) 4,100 283 Cameron International Corp. (AE)(N) 4,476 235 ENSCO International, Inc. 2,200 112 Foundation Coal Holdings, Inc. (N) 2,900 96 Hercules Offshore, Inc. (AE)(N) 3,100 82 Petroquest Energy, Inc. (AE)(N) 11,300 147 Range Resources Corp. (N) 10,937 336 Schlumberger, Ltd. 5,194 330 Weatherford International, Ltd. (AE) 16,520 667 XTO Energy, Inc. 11,950 603 ------------ 2,891 ------------ Producer Durables - 3.4% American Tower Corp. Class A (AE)(N) 22,890 912 Arris Group, Inc. (AE) 4,300 61 Baldor Electric Co. (N) 2,600 92 Boeing Co. 4,200 376 C-COR, Inc. (AE)(N) 10,500 144 CalAmp Corp. (AE)(N) 13,100 104 Cohu, Inc. (N) 6,800 136 Credence Systems Corp. (AE)(N) 32,900 160 Crown Castle International Corp. (AE)(N) 3,500 123 Deere & Co. 9,290 932 Distributed Energy Systems Corp. (AE)(N) 25,700 81 Entegris, Inc. (AE)(N) 11,027 118 ESCO Technologies, Inc. (AE)(N) 2,200 105 FARO Technologies, Inc. (AE) 6,600 164 Goodrich Corp. (N) 5,600 275 Intevac, Inc. (AE)(N) 6,922 153 Kla-Tencor Corp. 29,800 1,467 L-1 Identity Solutions, Inc. (AE)(N) 5,500 79 Polycom, Inc. (AE)(N) 7,000 235 Radyne Corp. (AE)(N) 11,300 118 SBA Communications Corp. Class A (AE)(N) 6,500 193
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- United Technologies Corp. 4,622 314 Zygo Corp. (AE)(N) 6,200 95 ------------ 6,437 ------------ Technology - 20.8% Actuate Corp. (AE)(N) 16,200 85 Akamai Technologies, Inc. (AE)(N) 1,200 67 Amdocs, Ltd. (AE) 4,500 156 Apple, Inc. (AE) 25,514 2,187 Applied Micro Circuits Corp. (AE)(N) 29,200 100 Art Technology Group, Inc. (AE)(N) 46,100 118 AsiaInfo Holdings, Inc. (AE)(N) 19,100 150 Aspen Technology, Inc. (AE)(N) 5,400 55 Avistar Communications Corp. (AE) 48,900 83 Bottomline Technologies, Inc. (AE) 10,900 143 Broadcom Corp. Class A (AE) 56,950 1,818 Captaris, Inc. (AE)(N) 15,100 133 Centillium Communications, Inc. (AE) 26,526 56 Cisco Systems, Inc. (AE) 119,020 3,165 Citrix Systems, Inc. (AE)(N) 2,900 92 Corning, Inc. (AE) 35,300 736 Daktronics, Inc. (N) 3,500 121 DealerTrack Holdings, Inc. (AE) 3,500 97 Dell, Inc. (AE) 57,680 1,399 Digital River, Inc. (AE)(N) 1,600 82 Ditech Networks, Inc. (AE)(N) 13,000 93 Equinix, Inc. (AE)(N) 2,000 168 Gartner, Inc. (AE)(N) 17,000 372 Harmonic, Inc. (AE)(N) 22,700 205 Hewlett-Packard Co. 11,700 506 Integrated Device Technology, Inc. (AE)(N) 9,700 147 Intuit, Inc. (AE) 54,600 1,717 Iomega Corp. (AE)(N) 17,400 68 JDS Uniphase Corp. (AE)(N) 13,549 241 LCC International, Inc. Class A (AE)(N) 28,500 115 Marvell Technology Group, Ltd. (AE) 8,115 148 Microsoft Corp. 119,142 3,677 Napster, Inc. (AE)(N) 23,400 94 National Semiconductor Corp. 24,900 576 Network Appliance, Inc. (AE) 34,290 1,289 Newport Corp. (AE)(N) 9,000 180 Novell, Inc. (AE) 8,600 62 Nuance Communications, Inc. (AE)(N) 16,600 191 Nvidia Corp. (AE) 33,080 1,014 Opsware, Inc. (AE)(N) 10,900 87 PMC - Sierra, Inc. (AE)(N) 17,900 113
Select Growth Fund 139 RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- QLogic Corp. (AE)(N) 5,800 106 Qualcomm, Inc. 120,200 4,527 Research In Motion, Ltd. (AE) 11,830 1,512 Safeguard Scientifics, Inc. (AE)(N) 35,500 94 Salesforce.com, Inc. (AE)(N) 2,100 92 SanDisk Corp. (AE) 67,530 2,715 SAP AG - ADR 12,000 556 Seachange International, Inc. (AE)(N) 18,400 184 Seagate Technology (N) 75,000 2,032 SimpleTech, Inc. (AE)(N) 17,300 189 Standard Microsystems Corp. (AE)(N) 8,000 223 Sun Microsystems, Inc. (AE) 221,100 1,468 Techwell, Inc. (AE)(N) 9,800 168 Texas Instruments, Inc. 72,350 2,257 Transaction Systems Architects, Inc. (AE)(N) 4,200 152 Transwitch Corp. (AE) 49,800 68 Trizetto Group, Inc. (The) (AE)(N) 6,200 128 Ultimate Software Group, Inc. (AE)(N) 8,200 200 Varian, Inc. (AE)(N) 1,400 75 VeriFone Holdings, Inc. (AE)(N) 2,900 116 Vignette Corp. (AE)(N) 7,800 140 Zhone Technologies, Inc. (AE)(N) 63,700 75 ------------ 38,983 ------------ Utilities - 0.9% Comcast Corp. Class A (AE) 1,980 88 Leap Wireless International, Inc. (AE) 3,100 203 Level 3 Communications, Inc. (AE)(N) 35,100 218 MDU Communications International, Inc. (AE) 29,200 22 NII Holdings, Inc. (AE) 15,200 1,123 ------------ 1,654 ------------ TOTAL COMMON STOCKS (cost $153,680) 179,538 ------------ SHORT-TERM INVESTMENTS - 4.3% Russell Investment Company Money Market Fund 7,109,000 7,109 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 1,000 994 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $8,103) 8,103 ------------ OTHER SECURITIES - 24.7% Russell Investment Company Money Market Fund (X) 11,450,076 11,450
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- State Street Securities Lending Quality Trust (X) 34,910,486 34,910 ------------ TOTAL OTHER SECURITIES (cost $46,360) 46,360 ------------ TOTAL INVESTMENTS - 124.8% (identified cost $208,143) 234,001 OTHER ASSETS AND LIABILITIES, NET - (24.8%) (46,436) ------------ NET ASSETS - 100.0% 187,565 ============
See accompanying notes which are an integral part of the schedules of investments. 140 Select Growth Fund RUSSELL INVESTMENT COMPANY SELECT GROWTH FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Nasdaq 100 Index (CME) expiration date 03/07 (13) 2,343 (32) Russell 1000 Growth Index expiration date 03/07 (11) 3,136 34 S&P 500 E-Mini Index (CME) expiration date 03/07 (12) 866 8 S&P 500 Index (CME) expiration date 03/07 (5) 1,804 11 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 21 ===============
See accompanying notes which are an integral part of the schedules of investments. Select Growth Fund 141 RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- COMMON STOCKS - 93.5% Auto and Transportation - 2.5% Airtran Holdings, Inc. (AE)(N) 36,138 400 Alexander & Baldwin, Inc. (N) 10,964 542 Burlington Northern Santa Fe Corp. 15,220 1,223 Continental AG - ADR 16,300 1,976 Fleetwood Enterprises, Inc. (AE)(N) 33,672 310 General Maritime Corp. (N) 11,670 426 Keystone Automotive Industries, Inc. (AE)(N) 16,712 599 Norfolk Southern Corp. 15,550 772 Polaris Industries, Inc. (N) 17,700 828 Tenneco, Inc. (AE) 15,006 349 TNT NV - ADR 40,700 1,848 United Parcel Service, Inc. Class B 14,700 1,062 Visteon Corp. (AE)(N) 52,574 421 Wabtec Corp. 19,550 626 ------------ 11,382 ------------ Consumer Discretionary - 9.1% 99 Cents Only Stores (AE)(N) 35,775 531 Accenture, Ltd. Class A 33,760 1,274 Arbitron, Inc. (N) 14,574 676 Black & Decker Corp. 8,400 733 Brinker International, Inc. 22,500 710 Casual Male Retail Group, Inc. (AE) 39,398 492 Corinthian Colleges, Inc. (AE)(N) 37,678 492 Cost Plus, Inc. (AE)(N) 54,704 563 Cox Radio, Inc. Class A (AE)(N) 23,751 372 DeVry, Inc. (N) 19,015 535 Diamond Management & Technology Consultants, Inc. Class A (N) 44,735 558 Expedia, Inc. (AE) 27,400 588 Family Dollar Stores, Inc. 27,000 875 Federated Department Stores, Inc. 34,010 1,411 Foot Locker, Inc. 49,900 1,120 Gap, Inc. (The) 59,400 1,139 Grupo Televisa SA - ADR 34,900 1,028 Hanesbrands, Inc. (AE) 3,271 84 Hasbro, Inc. (N) 58,570 1,663 Home Depot, Inc. 29,600 1,206 InterActiveCorp (AE) 13,800 530 Jarden Corp. (AE)(N) 15,064 552 Kimberly-Clark Corp. 34,500 2,394 Liberty Media Corp. - Interactive (AE) 57,000 1,389 Liberty Media Holding Corp. Series A (AE) 24,900 2,547 Limited Brands, Inc. 63,000 1,760 McDonald's Corp. 60,000 2,661 Nautilus, Inc. 27,563 450 New York Times Co. Class A (N) 10,770 249 Nike, Inc. Class B 14,160 1,399 NTL, Inc. 52,900 1,442
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- O'Charleys, Inc. (AE)(N) 27,193 578 OfficeMax, Inc. 10,300 497 Omnicom Group, Inc. 7,800 821 Phillips-Van Heusen Corp. 11,900 656 RR Donnelley & Sons Co. 18,500 686 School Specialty, Inc. (AE)(N) 11,712 456 Sears Holdings Corp. (AE) 3,100 548 ServiceMaster Co. (The) (N) 48,500 633 Sturm Ruger & Co., Inc. (AE)(N) 46,513 484 TJX Cos., Inc. 54,000 1,597 Viacom, Inc. Class A (AE) 21,047 856 Walt Disney Co. (The) 43,350 1,525 WPP Group PLC - ADR (N) 5,540 408 ------------ 41,168 ------------ Consumer Staples - 5.1% Altria Group, Inc. 76,200 6,659 Anheuser-Busch Cos., Inc. 35,100 1,789 Coca-Cola Co. (The) 27,500 1,317 ConAgra Foods, Inc. 64,700 1,663 Cott Corp. (AE)(N) 31,828 451 CVS Corp. (N) 17,490 589 Del Monte Foods Co. 9,055 104 Diageo PLC - ADR 13,020 1,025 Hershey Co. (The) (N) 26,100 1,332 HJ Heinz Co. 31,200 1,470 Kellogg Co. 24,000 1,183 Lance, Inc. 20,317 432 Molson Coors Brewing Co. Class B 18,700 1,511 Nestle SA - ADR 10,330 944 PepsiCo, Inc. 10,220 667 Procter & Gamble Co. 26,100 1,693 Tyson Foods, Inc. Class A (N) 13,490 239 ------------ 23,068 ------------ Financial Services - 25.9% Aflac, Inc. 9,470 451 Allstate Corp. (The) 57,650 3,468 American Express Co. 17,820 1,038 American International Group, Inc. 44,300 3,032 Ameriprise Financial, Inc. 13,800 814 Amvescap PLC - ADR (N) 46,300 1,128 Annaly Capital Management, Inc. (o) 73,600 1,014 Assurant, Inc. 16,700 928 Astoria Financial Corp. 21,900 648 Automatic Data Processing, Inc. 20,900 997 Bank of America Corp. 232,185 12,208
142 Select Value Fund RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Bank of New York Co., Inc. (The) (N) 39,280 1,572 Bear Stearns Cos., Inc. (The) 11,400 1,879 Cedar Shopping Centers, Inc. (o)(N) 18,623 312 Chubb Corp. 12,400 645 Cigna Corp. 9,200 1,218 Citigroup, Inc. 168,210 9,273 Colonial BancGroup, Inc. (The) (N) 28,000 687 Countrywide Financial Corp. 58,800 2,557 Covanta Holding Corp. (AE)(N) 35,200 833 Credit Suisse Group - ADR 16,800 1,194 Cullen/Frost Bankers, Inc. 11,600 621 Fannie Mae 32,900 1,860 Federated Investors, Inc. Class B 33,000 1,165 First Horizon National Corp. (N) 17,100 746 First Industrial Realty Trust, Inc. (o)(N) 10,517 497 First Marblehead Corp. (The) (N) 9,160 498 Franklin Resources, Inc. 5,940 708 Freddie Mac 6,730 437 Fremont General Corp. (N) 21,136 287 GATX Corp. (N) 10,066 459 Genworth Financial, Inc. Class A 32,130 1,121 Goldman Sachs Group, Inc. 13,810 2,930 H&R Block, Inc. 32,200 792 Hanover Insurance Group, Inc. (The) 9,602 461 Hartford Financial Services Group, Inc. 25,210 2,393 Huntington Bancshares, Inc. (N) 49,600 1,155 Jones Lang LaSalle, Inc. 12,700 1,327 JPMorgan Chase & Co. 130,200 6,631 KeyCorp 33,500 1,279 Kronos, Inc. (AE)(N) 11,902 452 Legg Mason, Inc. 19,700 2,066 Lehman Brothers Holdings, Inc. 47,230 3,884 Lincoln National Corp. 15,100 1,014 MBIA, Inc. 19,600 1,408 Mellon Financial Corp. (N) 22,950 981 Mercury General Corp. (N) 13,200 689 Merrill Lynch & Co., Inc. 70,110 6,560 Metlife, Inc. 52,000 3,230 MGIC Investment Corp. (N) 16,300 1,006 Morgan Stanley 11,200 927 New York Community Bancorp, Inc. (N) 64,300 1,086 Northern Trust Corp. 23,800 1,446 PNC Financial Services Group, Inc. 19,580 1,444 Protective Life Corp. 13,600 665 Prudential Financial, Inc. 13,400 1,194 South Financial Group, Inc. (The) (N) 29,600 765 St. Paul Travelers Cos., Inc. (The) 28,600 1,454 Sun Communities, Inc. (o) 10,765 340 SunTrust Banks, Inc. 41,210 3,425 UBS AG 63,410 3,996 US Bancorp 73,900 2,631
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- W Holding Co., Inc. 7,819 41 Wachovia Corp. 16,600 938 Washington Mutual, Inc. (N) 68,900 3,072 Westamerica Bancorporation (N) 8,360 417 Wilmington Trust Corp. 24,600 1,032 ------------ 117,426 ------------ Health Care - 11.0% Abbott Laboratories 8,150 432 AmerisourceBergen Corp. Class A 24,300 1,273 Amgen, Inc. (AE) 65,100 4,581 Biogen Idec, Inc. (AE)(N) 66,815 3,230 Boston Scientific Corp. (AE) 91,100 1,681 Caremark Rx, Inc. 5,760 353 Chattem, Inc. (AE)(N) 11,806 678 Diversa Corp. (AE)(N) 28,430 290 Eli Lilly & Co. 36,730 1,988 Gentiva Health Services, Inc. (AE)(N) 32,354 641 Genzyme Corp. (AE) 41,200 2,708 Haemonetics Corp. (AE)(N) 8,271 399 Johnson & Johnson 65,800 4,395 KV Pharmaceutical Co. (AE)(N) 25,151 635 LifePoint Hospitals, Inc. (AE)(N) 8,321 283 Matria Healthcare, Inc. (AE)(N) 22,141 612 McKesson Corp. 14,500 808 Medco Health Solutions, Inc. (AE) 15,800 935 Medtronic, Inc. 60,400 3,228 Merck & Co., Inc. 67,920 3,039 Par Pharmaceutical Cos., Inc. (AE)(N) 26,671 704 Pfizer, Inc. 127,300 3,340 PolyMedica Corp. (N) 16,281 652 PSS World Medical, Inc. (AE) 15,562 311 Sunrise Senior Living, Inc. (AE)(N) 14,759 528 SurModics, Inc. (AE) 2,884 104 Thermo Fisher Scientific, Inc. (AE) 16,200 775 UnitedHealth Group, Inc. 64,750 3,384 US Physical Therapy, Inc. (AE) 22,491 317 WellPoint, Inc. (AE) 62,090 4,867 Wyeth 54,150 2,676 ------------ 49,847 ------------ Integrated Oils - 4.5% Chevron Corp. 67,852 4,945 ConocoPhillips 49,310 3,275 Exxon Mobil Corp. 123,960 9,185 Hess Corp. 23,980 1,295
Select Value Fund 143 RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Marathon Oil Corp. 7,600 687 Total SA - ADR 17,960 1,222 ------------ 20,609 ------------ Materials and Processing - 7.4% Acuity Brands, Inc. (N) 10,340 600 Air Products & Chemicals, Inc. 10,360 773 Albemarle Corp. 11,900 928 American Standard Cos., Inc. (N) 62,900 3,107 Avery Dennison Corp. 8,500 581 Bowater, Inc. (N) 3,930 107 Brush Engineered Materials, Inc. (AE)(N) 15,066 498 Celanese Corp. Class A (N) 30,500 801 Chemtura Corp. (N) 51,200 590 Chicago Bridge & Iron Co. NV 23,200 689 Commercial Metals Co. (N) 17,399 472 Dow Chemical Co. (The) (N) 44,840 1,863 EI Du Pont de Nemours & Co. 19,400 961 Freeport-McMoRan Copper & Gold, Inc. Class B (N) 47,500 2,732 International Paper Co. 45,450 1,532 LSI Industries, Inc. 7,160 137 Lubrizol Corp. 13,900 716 Lyondell Chemical Co. (N) 13,500 427 Masco Corp. (N) 73,460 2,350 MeadWestvaco Corp. 21,300 642 Modtech Holdings, Inc. (AE)(N) 43,809 205 Nalco Holding Co. (AE) 11,680 268 Packaging Corp. of America 26,700 610 PPG Industries, Inc. (N) 21,070 1,397 Praxair, Inc. 12,460 786 Precision Castparts Corp. 35,200 3,129 RPM International, Inc. 33,100 769 Sherwin-Williams Co. (The) 8,320 575 Smurfit-Stone Container Corp. (AE)(N) 17,360 187 Spartech Corp. 21,634 606 Steel Dynamics, Inc. (N) 16,200 635 Syngenta AG - ADR 32,590 1,208 Teck Cominco, Ltd. Class B (N) 21,600 1,595 Timken Co. 23,000 658 Valspar Corp. 20,100 566 ------------ 33,700 ------------ Miscellaneous - 2.4% 3M Co. 16,000 1,189 Brunswick Corp. 20,200 689 Eaton Corp. 1,700 133 General Electric Co. 70,400 2,538 Johnson Controls, Inc. 5,550 513 SPX Corp. (N) 10,800 758 Textron, Inc. 27,200 2,534 Trinity Industries, Inc. (N) 49,050 1,876
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Tyco International, Ltd. 16,100 514 ------------ 10,744 ------------ Other Energy - 5.0% Anadarko Petroleum Corp. 15,600 682 Apache Corp. 11,080 809 Chesapeake Energy Corp. 111,300 3,296 Devon Energy Corp. 51,750 3,627 Dynegy, Inc. Class A (AE) 2,043 14 Encore Acquisition Co. (AE)(N) 18,749 487 EOG Resources, Inc. 35,310 2,441 Forest Oil Corp. (AE)(N) 12,153 388 Global Industries, Ltd. (AE) 26,998 364 Hanover Compressor Co. (AE)(N) 29,867 578 Matrix Service Co. (AE)(N) 31,761 585 National-Oilwell Varco, Inc. (AE) 42,400 2,571 Noble Corp. (N) 5,050 378 Sunoco, Inc. 13,700 865 Tesoro Corp. 7,700 634 Transocean, Inc. (AE) 23,300 1,803 Valero Energy Corp. 33,700 1,829 Whiting Petroleum Corp. (AE)(N) 10,420 475 Williams Cos., Inc. 26,500 715 ------------ 22,541 ------------ Producer Durables - 7.4% Agilent Technologies, Inc. (AE) 97,200 3,110 Alcatel-Lucent - ADR 60,300 784 BE Aerospace, Inc. (AE) 19,179 571 Boeing Co. 44,200 3,959 C&D Technologies, Inc. (N) 79,696 430 Champion Enterprises, Inc. (AE)(N) 53,342 438 Cooper Industries, Ltd. Class A (N) 2,240 205 Deere & Co. 21,870 2,193 Esterline Technologies Corp. (AE)(N) 11,199 448 Federal Signal Corp. 33,187 545 General Cable Corp. (AE)(N) 17,073 736 Goodrich Corp. 46,500 2,279 IDEX Corp. 7,981 414 Lockheed Martin Corp. 44,760 4,350 Mettler Toledo International, Inc. (AE) 2,700 224 Nokia OYJ - ADR 71,000 1,569 Northrop Grumman Corp. 51,300 3,639 Pentair, Inc. (N) 27,300 851 Robbins & Myers, Inc. 18,240 793 Steelcase, Inc. Class A 27,300 535 Terex Corp. (AE) 22,600 1,286
144 Select Value Fund RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands (except share amounts)
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- Toll Brothers, Inc. (AE)(N) 8,300 281 United Technologies Corp. 38,020 2,586 Varian Semiconductor Equipment Associates, Inc. (AE)(N) 7,641 314 WW Grainger, Inc. 10,450 812 ------------ 33,352 ------------ Technology - 5.7% American Science & Engineering, Inc. (AE)(N) 9,014 493 Analog Devices, Inc. 25,470 834 CACI International, Inc. Class A (AE)(N) 8,917 419 Cisco Systems, Inc. (AE) 15,580 414 Dell, Inc. (AE) 33,900 822 DRS Technologies, Inc. (N) 9,112 505 General Dynamics Corp. 35,300 2,759 GTSI Corp. (AE)(N) 3,851 36 Harris Corp. 15,900 808 Hewlett-Packard Co. 127,500 5,518 Intel Corp. 194,810 4,083 International Business Machines Corp. 8,400 833 Linear Technology Corp. 20,500 634 LSI Logic Corp. (AE)(N) 312,000 2,933 Mantech International Corp. Class A (AE) 14,594 498 Micron Technology, Inc. (AE) 48,900 633 Oracle Corp. (AE) 61,390 1,053 Rockwell Automation, Inc. (N) 12,140 743 Seagate Technology, Inc. (AE) 1,900 -- Synopsys, Inc. (AE)(N) 37,500 998 Varian, Inc. (AE)(N) 10,028 537 Western Digital Corp. (AE) 25,400 498 ------------ 26,051 ------------ Utilities - 7.5% Alaska Communications Systems Group, Inc. (N) 40,912 661 Alltel Corp. 60,800 3,726 America Movil SA de CV Series L 50,300 2,231 American Electric Power Co., Inc. 36,600 1,593 Aqua America, Inc. (N) 33,000 733 AT&T, Inc. 86,600 3,258 China Mobile, Ltd. - ADR (N) 56,700 2,617 Citizens Communications Co. (N) 59,200 868 Comcast Corp. Class A (AE) 28,800 1,276 Consolidated Edison, Inc. (N) 6,600 319 Dominion Resources, Inc. 31,110 2,580 Edison International 16,400 738 Embarq Corp. 9,977 554 Entergy Corp. 7,510 697
PRINCIPAL MARKET AMOUNT ($) VALUE OR SHARES $ - ----------------------------------------------------------------------------- FPL Group, Inc. (N) 20,960 1,187 NiSource, Inc. (N) 25,900 616 Pepco Holdings, Inc. 26,500 678 PPL Corp. 7,470 266 Progress Energy, Inc. - CVO 1,300 -- Public Service Enterprise Group, Inc. (N) 3,370 226 Rogers Communications, Inc. Class B 28,100 870 SCANA Corp. 7,200 293 Sprint Nextel Corp. 169,490 3,022 TECO Energy, Inc. (N) 23,500 399 TELUS Corp. Class A 3,800 176 TXU Corp. 13,240 716 Verizon Communications, Inc. 56,640 2,182 Vodafone Group PLC - ADR 34,481 1,013 Windstream Corp. (AE) 45,400 678 ------------ 34,173 ------------ TOTAL COMMON STOCKS (cost $340,367) 424,061 ------------ SHORT-TERM INVESTMENTS - 6.0% Russell Investment Company Money Market Fund 25,756,000 25,756 United States Treasury Bills (c)(z)(sec.) 4.968% due 03/15/07 1,500 1,492 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $27,248) 27,248 ------------ OTHER SECURITIES - 15.3% Russell Investment Company Money Market Fund (X) 17,086,209 17,086 State Street Securities Lending Quality Trust (X) 52,094,664 52,095 ------------ TOTAL OTHER SECURITIES (cost $69,181) 69,181 ------------ TOTAL INVESTMENTS - 114.8% (identified cost $436,796) 520,490 OTHER ASSETS AND LIABILITIES, NET - (14.8%) (67,117) ------------ NET ASSETS - 100.0% 453,373 ============
See accompanying notes which are an integral part of the schedules of investments. Select Value Fund 145 RUSSELL INVESTMENT COMPANY SELECT VALUE FUND SCHEDULE OF INVESTMENTS, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) Amounts in thousands
UNREALIZED NOTIONAL APPRECIATION FUTURES CONTRACTS AMOUNT (DEPRECIATION) (NUMBER OF CONTRACTS) $ $ - ------------------------------------------------------------------------------------ Long Positions Russell 1000 Value Index expiration date 03/07 (29) 12,017 214 S&P 500 E-Mini Index (CME) expiration date 03/07 (19) 1,371 15 S&P 500 Index (CME) expiration date 03/07 (39) 14,069 107 --------------- Total Unrealized Appreciation (Depreciation) on Open Futures Contracts 336 ===============
See accompanying notes which are an integral part of the schedules of investments. 146 Select Value Fund RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO SCHEDULES OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- FOOTNOTES: (AE) Nonincome-producing security. (I) Forward commitment. (E) Adjustable or floating rate security. Rate shown reflects rate in effect at period end. (f) Perpetual floating rate security. Rate shown reflects rate in effect at period end. (o) Real Estate Investment Trust (REIT). (u) Bond is insured by a guarantor. (B) Illiquid security. (ffl) In default. (c) At amortized cost, which approximates market. (z) Rate noted is yield-to-maturity from date of acquisition. (ae) Pre-refunded: These bonds are collateralized by US 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. (sec.)All or a portion of the shares of this security are held as collateral in connection with futures contracts purchased (sold), options written, or swaps entered into by the Fund. (X) The security is purchased with the cash collateral from the securities loaned. (N) All or a portion of the shares of this security are on loan. (p) Restricted security. Security may have contractual restrictions on resale, may have been offered in a private placement transaction, and may not be registered under the Securities Act of 1933. (A) Illiquid and restricted security. (a) Currency balances were held in connection with futures contracts purchased (sold), options written, or swaps entered into by the Fund. See Note 2. (U) All or a portion of the shares of this security are held as collateral in connection with securities sold short. ABBREVIATIONS: ADR - American Depositary Receipt ADS - American Depositary Share CIBOR - Copenhagen Interbank Offered Rate CME - Chicago Mercantile Exchange CMO - Collateralized Mortgage Obligation CVO - Contingent Value Obligation FDIC - Federal Deposit Insurance Company GDR - Global Depositary Receipt GDS - Global Depositary Share LIBOR - London Interbank Offered Rate NIBOR - Norwegian Interbank Offered Rate PIK - Payment in Kind REMIC - Real Estate Mortgage Investment Conduit STRIP - Separate Trading of Registered Interest and Principal of Securities TBA - To Be Announced Security 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 - Iceland 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 Rica 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 EGP - Egyptian pound MYR - Malaysian ringgit VEB - Venezuelan bolivar EUR - Euro NOK - Norwegian krone VND - Vietnamese dong GBP - British pound sterling NZD - New Zealand dollar ZAR - South African rand PEN - Peruvian nouveau sol
Notes to Schedules of Investments 147 RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- 1. ORGANIZATION Russell Investment Company (the "Investment Company" or "RIC") is a series investment company with 34 different investment portfolios referred to as Funds. This Quarterly Report reports on eleven of these Funds. The Investment Company is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is organized and operates as a Massachusetts business trust under an amended and restated master trust agreement dated August 19, 2002. The Investment Company's master trust agreement permits the Board of Trustees (the "Board") to issue an unlimited number of shares of beneficial interest at a $.01 par value per share. On July 1, 2006, Frank Russell Investment Company changed its name to Russell Investment Company and Frank Russell Investment Management Company changed its name to Russell Investment Management Company ("RIMCo"). 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 generally accepted accounting principles ("GAAP") for investment companies. The presentation of these schedules of investments in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Quarterly Report. Actual results could differ from those estimates. Security Valuation The Funds value portfolio securities according to Board-approved Securities Valuation Procedures, including Market Value Procedures, Fair Value Procedures and Pricing Services. Money market fund securities are priced using the amortized cost method of valuation, as are debt obligation securities maturing within 60 days at the time of purchase, unless the Board determines that amortized cost does not represent market value of short-term debt obligations. The Board has delegated the responsibility for administration of the Securities Valuation Procedures to RIMCo. Ordinarily, the Funds value each portfolio security based on market quotations provided by Pricing Services or alternative pricing services or dealers (when permitted by the Market Value Procedures). Generally, Fund securities are valued at the close of the market on which they are traded as follows: - US listed equities; equity and fixed income options: Last sale price; last bid price if no last sale price; - US over-the-counter equities: Official closing price; last bid price if no closing price; - Listed ADRs/GDRs: Last sale price; last bid price if no sales; - Municipal bonds, US bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price; - Futures: Settlement price. - Investments in other mutual funds are valued at their net asset value per share, calculated at 4 p.m. Eastern time or as of the close of the New York Stock Exchange, whichever is earlier. - The value of swap agreements are equal to the Funds' obligation (or rights) under swap contracts which will generally be equal to the net amounts to be paid or received under the contracts based upon the relative values of the positions held by each party to the contracts. - Equity securities traded on a national securities foreign exchange or an over the counter market (foreign or domestic) are valued on the basis of the official closing price, or lacking the official closing price, at the last sale price of the primary exchange on which the security is traded. If market quotations are not readily available for a security or if subsequent events suggest that a market quotation is not reliable, the Funds will use the security's fair value, as determined in accordance with the Fair Value Procedures. This generally means that equity securities and fixed income securities listed and traded principally on any national securities exchange are valued on the basis of the last sale price or, lacking any sales, at the closing bid price, on the primary exchange on which the security is traded. The Fair Value Procedures may involve subjective judgments as to the fair value of securities. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Fund's Board of Trustees believes reflects fair value. The use of 148 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- fair value pricing by a Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using normal pricing methods. Fair value pricing could also cause discrepancies between the daily movement of the value of Fund shares and the daily movement of the benchmark index if the index is valued using another pricing method. This policy is intended to assure that the Funds' net asset values fairly reflect security values as of the time of pricing. 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 net asset value of Fund shares is determined may be reflected in the calculation of net asset values for each applicable Fund when the Funds deem that the particular event or circumstance would materially affect such Fund's net asset value. RIC 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. RIC 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. RIC Funds that invest in low rated debt securities are also likely to use fair value pricing more often since the markets in which such securities are traded are generally thinner, more limited and less active than those for higher rated securities. Examples of events that could trigger fair value pricing of one or more securities are: a material market movement of the US securities market (defined in the Fair Value Procedures as the movement by any two of four major US Indexes greater than a certain percentage) or other significant event; foreign market holidays if on a daily basis, Fund exposure exceeds 20% in aggregate (all closed markets combined); a company development; a natural disaster; or an armed conflict. Because foreign securities can trade on non-business days, the net asset value 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. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds financial statement disclosure. Investment Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions, if any, are recorded on the basis of specific identified cost incurred by 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 thereafter as the Funds are informed of the ex-dividend date. Interest income is recorded daily on the accrual basis. All premiums and discounts, including original issue discounts, are amortized/accreted using the interest method. Foreign Currency Translations The books and records of the Funds are maintained in US dollars. Foreign currency amounts and transactions of the Funds are translated into US dollars on the following basis: (a) Market 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. Reported 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 US dollar equivalent of the amounts actually received or paid. Net unrealized gains or losses from foreign currency-related transactions arise from changes in the value of assets and liabilities, other than investments in securities, at year-end, 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 Notes to Quarterly Report 149 RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- 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 To the extent permitted by the investment objectives, restrictions and policies set forth in the Funds' Prospectus and Statement of Additional Information, the Funds may participate in various derivative-based transactions. Derivative securities are instruments or agreements whose value is derived from an underlying security or index. They include options, futures, swaps, swaptions, forwards, structured notes and stripped securities. These instruments offer unique characteristics and risks that assist the Funds in meeting their investment strategies. The Funds typically use derivatives in two ways: hedging and return enhancement. The Funds may use a hedging strategy for their cash reserves to achieve a strategy of being fully invested by exposing those reserves to the performance of appropriate markets by purchasing equity or fixed income securities, as appropriate, and/or derivatives. Hedging is also used by some 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. By purchasing certain instruments, 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 are generally categorized as market risk, liquidity risk and counterparty or credit risk. Foreign Currency Exchange Contracts In connection with portfolio purchases and sales of securities denominated in a foreign currency, certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts ("contracts"). The International Fund may enter into foreign currency forward overlays on liquidity reserve balances. Additionally, from time to time the International, Emerging Markets, Short Duration Bond, Fixed Income I and Fixed Income III Funds may enter into contracts to hedge certain foreign currency-denominated assets. Contracts are recorded at market value. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and are generally limited to the amount of unrealized gain on the contracts, if any, that are recognized in the Statement of Assets and Liabilities. Realized gains or losses arising from such transactions are included in net realized gain (or loss) from foreign currency-related transactions. Open contracts at January 31, 2007, are presented on the Schedule of Investments for the applicable Funds. Forward Commitments The Funds may contract to purchase securities for a fixed price at a future date beyond customary settlement time consistent with a Fund's ability to manage its investment portfolio and meet redemption requests. 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 realize short-term gains (or losses) upon such sale. When effecting such transactions, cash or liquid high-grade debt obligations of the Fund in a dollar amount sufficient to make payment for the portfolio securities to be purchased will be segregated on the Fund's records at the trade date and maintained 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. Loan Agreements The Fixed Income I Fund and Fixed Income III Fund may invest in direct debt instruments which are interests in amounts owed by corporate, governmental, or other borrowers to lenders or lending syndicates. A Fund's 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 "lender") 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, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the borrower. A Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When a Fund purchases assignments from lenders it acquires direct rights against the borrower on 150 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- the loan. At the period ended January 31, 2007, there were no unfunded loan commitments in the Fixed Income I Fund or Fixed Income III Fund. Options The Funds may purchase and sell (write) call and put options on securities and securities indices, provided such options are traded on a national securities exchange or in an over-the-counter market. The Funds may also purchase and sell call and put options on foreign currencies. The domestic equity Funds may utilize options to equitize liquidity reserve balances. 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 market 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 stock value 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 security. 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. Realized gains (losses) on purchased options are included in net realized gain (loss) from investments. The Funds' use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement 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. Futures Contracts The Funds presented herein may invest in futures contracts (i.e., interest rate, foreign currency and index futures contracts) to a limited extent. The face or contract amounts 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 market value of the securities held by the Fund 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% of the purchase price indicated in the futures contract. Payments to and from the broker, known as variation margin, are 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. As of January 31, 2007, the Emerging Markets Fund, International Fund, and the Fixed Income III Fund had cash collateral balances of $2,600,000, $3,869,245, and $106,029 respectively in connection with futures contracts purchased (sold). Swap Agreements The Funds may enter into several different types of agreements including interest rate, index, credit default and currency swaps. The Funds may enter into index swap agreements as an additional hedging strategy for cash reserves held by those Funds or to effect investment transactions consistent with these Funds' investment objectives and strategies. 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 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). Amounts paid to and received from the swap counterparties representing capital appreciation and depreciation on the underlying securities and accrued interest expense and interest income are recorded as net realized gain (loss). The Fund is exposed to credit risk in the event of non-performance by the swap counterparties; however, the Fund does not anticipate non-performance by the counterparties. Notes to Quarterly Report 151 RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- The Short Duration Bond, Fixed Income I, Fixed Income III and International Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether it is hedging its assets or its liabilities, and will usually enter into swaps on a net basis, i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, 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 or rights to receive payments of another party (i.e., an exchange of floating rate payments for fixed rate payments). Interest rate swaps are a counterparty agreement and can be customized to meet each parties needs and involves the exchange of a fixed payment per period for a payment that is not fixed. Currency swaps are an agreement where two parties exchange specified amounts of different currencies which are followed by a series of interest payments that are exchanged based on the principal cash flow. At maturity the principal amounts are exchanged back. Credit default swaps are a counterparty agreement which allows the transfer of third party credit risk (the possibility that an issuer will default on their 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. The Fund expects to enter into these transactions primarily to preserve a return or spread on a particular investment or portion of its portfolio or to protect against any increase in the price of securities it anticipates purchasing at a later date. The net amount of the excess, if any, of the Fund's obligations over its entitlements with respect to each swap will be accrued on a daily basis and an amount of cash or liquid high-grade debt securities having an aggregate net asset value at least equal to the accrued excess will be maintained in a segregated account by the Fund's custodian. To the extent that the Fund enters into swaps on other than a net basis, the amount maintained in a segregated account will be the full amount of the Fund's obligations, if any, with respect to such interest rate swaps, accrued on a daily basis. If there is a default by the other party to such a transaction, the Fund will have contractual remedies pursuant to the agreement related to the transaction. The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the swap market has become relatively liquid. Short Sales The Equity Q Fund 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 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 Fund 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 fund replaces the borrowed security. The Fund will realize a gain if the security declines in price between those dates. The making of short sales exposes the Fund to the risk of liability for the market value of the security that is sold (the amount of which liability increases as the market value of the underlying security increases), in addition to the costs associated with establishing, maintaining and closing out the short position. Although the Fund's 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 Fund makes a short sale, the Fund may use all or a portion of the cash proceeds of short sales to purchase additional securities or for any other permissible Fund purpose. To the extent necessary to meet collateral requirements, the Fund is required to pledge assets in a segregated account maintained by the Fund's custodian for the benefit of the broker. The Fund also may use securities it owns to meet any such collateral obligations. Until a Fund replaces a borrowed security in connection with a short sale, the Fund will: (a) maintain daily a segregated account, containing cash, cash equivalents, or liquid marketable securities, at such a level that the amount deposited in the segregated account plus the amount deposited with the broker as collateral 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 SEC (e.g., taking an offsetting long position in the security sold short). As of January 31, 2007, $222,399,481 was held as collateral. Investments in Emerging Markets Investing in emerging markets may involve special risks and considerations for the Emerging Markets Fund and International Fund not typically associated with investing in the United States markets. These risks include revaluation of currencies, high rates of inflation, repatriation, restrictions on income and capital, and future adverse political and economic developments. 152 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, delayed settlements, and their prices may be more volatile than those of comparable securities in the United States. 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. Mortgage-Related and Other Asset-Backed Securities Certain Funds may invest in mortgage or other asset-backed securities. Theses securities include mortgage pass-through securities, collateralized mortgage obligations ("CMOs"), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage backed securities ("SMBSs") 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 some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage- related securities may expose a Fund to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market's perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations. One type of SMBS has one class receiving all of the interest from the mortgage assets (the interest-only, or "IO" class), while the other class will receive all of the principal (the principal-only, or "PO" class). Payments received for the IOs are included in interest income on the Statement of Operations. Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security on a daily basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities. Inflation-Indexed Bonds Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity. 3. INVESTMENT TRANSACTIONS Written Options Contracts Transactions in written options contracts for the period ended January 31, 2007 for the following Funds were as follows:
INTERNATIONAL FUND FIXED INCOME I FUND ------------------------------------------ ------------------------------------------ NUMBER OF PREMIUMS NUMBER OF PREMIUMS CONTRACTS RECEIVED CONTRACTS RECEIVED ------------------------------------------------------------------------------------------------------------------------------ Outstanding October 31, 2006 214 $ 968,061 574 $ 208,180 Opened 527 2,536,630 1,856 301,643 Closed (501) (2,399,617) (1,290) (222,803) Expired -- -- (255) (98,793) ------------------- ------------------- ------------------- ------------------- Outstanding January 31, 2007 240 $ 1,105,074 885 $ 188,227 =================== =================== =================== ===================
Notes to Quarterly Report 153 RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - --------------------------------------------------------------------------------
FIXED INCOME III FUND EMERGING MARKETS FUND ------------------------------------------ ------------------------------------------ NUMBER OF PREMIUMS NUMBER OF PREMIUMS CONTRACTS RECEIVED CONTRACTS RECEIVED ------------------------------------------------------------------------------------------------------------------------------ Outstanding October 31, 2006 410 $ 654,309 626 $ 828,429 Opened 1,714 490,269 596 854,485 Closed (1,152) (213,778) (806) (1,117,677) Expired (179) (98,954) -- -- ------------------- ------------------- ------------------- ------------------- Outstanding January 31, 2007 793 $ 831,846 416 $ 565,237 =================== =================== =================== ===================
SHORT DURATION BOND FUND ------------------------------------------ NUMBER OF PREMIUMS CONTRACTS RECEIVED -------------------------------------------------------------------------------- Outstanding October 31, 2006 415 $ 773,315 Opened 4 272,185 Closed (352) (336,076) Expired (42) (117,035) ------------------- ------------------- Outstanding January 31, 2007 25 $ 592,389 =================== ===================
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 its total assets. The Fund receives cash (US currency), US Government or US Government agency obligations as collateral against the loaned securities. To the extent that a loan is collateralized by cash, such collateral is invested by the securities lending agent, State Street Bank and Trust Company ("State Street") in short-term instruments, money market mutual funds and other short-term investments that meet certain quality and diversification requirements. Cash collateral invested in money market funds is included in the Schedules of Investments. 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 and transaction costs, is divided between the Fund and State Street and is recorded as income for the Fund. To the extent that a loan is secured by non-cash collateral, brokers pay the Fund negotiated lenders' fees, which are divided between the Fund and State Street 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 US securities) or 105% (for non-US securities) of the market value of the loaned securities at the inception of each loan. The market value of the loaned securities is determined at the close of business of the Funds 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. Consequently, loans are made only to borrowers which are deemed to be of good financial standing. As of January 31, 2007, the non-cash collateral received for the securities on loan in the following funds was:
NON-CASH FUNDS COLLATERAL VALUE NON-CASH COLLATERAL HOLDING ------------------------------------------------------------------------------------------------ Equity Q $ 627,141 Pool of US Government Securities International 267,684 Pool of US Government Securities
4. RELATED PARTIES The Funds are permitted to invest their cash reserves (i.e., cash awaiting investment or cash held to meet redemption requests or to pay expenses), and also may invest a portion of the collateral received from the Investment Company's securities lending program in the Investment Company's Money Market Fund (one of the Funds of the Investment Company not presented herein). As of January 31, 2007, $843,306,704 of the Money Market Fund's net assets represents investment by the Funds presented herein, and $1,783,802,403 represents investment of other RIC Funds not presented herein. 154 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- 5. FEDERAL INCOME TAXES At January 31, 2007, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:
EQUITY I EQUITY II EQUITY Q ---------------------------------------------------------------------------------------------------------- Cost of Investments $ 1,648,650,617 $ 759,084,473 $ 1,564,355,741 =================== =================== =================== Unrealized Appreciation $ 281,454,435 $ 99,683,049 $ 309,418,690 Unrealized Depreciation (11,403,142) (11,230,404) (12,383,871) ------------------- ------------------- ------------------- Net Unrealized Appreciation (Depreciation) $ 270,051,293 $ 88,452,645 $ 297,034,819 =================== =================== ===================
INTERNATIONAL FIXED INCOME I FIXED INCOME III EMERGING MARKETS ------------------------------------------------------------------------------------------------------------------------------ Cost of Investments $ 2,000,855,649 $ 1,863,220,337 $ 1,143,034,899 $ 956,568,452 =================== =================== =================== =================== Unrealized Appreciation $ 398,641,190 $ 8,413,719 $ 646,881 $ 385,829,960 Unrealized Depreciation (12,141,768) (18,545,893) (583,896) (12,343,017) ------------------- ------------------- ------------------- ------------------- Net Unrealized Appreciation (Depreciation) $ 386,499,422 $ (10,132,174) $ 62,985 $ 373,486,943 =================== =================== =================== ===================
REAL ESTATE SECURITIES SHORT DURATION BOND SELECT GROWTH SELECT VALUE ------------------------------------------------------------------------------------------------------------------------------ Cost of Investments $ 1,568,696,028 $ 1,196,528,378 $ 209,465,346 $ 438,236,969 =================== =================== =================== =================== Unrealized Appreciation $ 975,475,623 $ 1,226,915 $ 27,086,251 $ 85,336,349 Unrealized Depreciation (659,678) (9,500,947) (2,550,788) (3,083,127) ------------------- ------------------- ------------------- ------------------- Net Unrealized Appreciation (Depreciation) $ 974,815,945 $ (8,274,032) $ 24,535,463 $ 82,253,222 =================== =================== =================== ===================
6. RESTRICTED SECURITIES Restricted securities are subject to contractual limitations on resale, are often issued in private placement transactions, and are not registered under the Securities Act of 1933 (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. 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. Notes to Quarterly Report 155 RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- The following table lists restricted securities held by a Fund that are illiquid. The following table does not include (1) securities deemed liquid by RIMCo or a money manager pursuant to Board approved policies and procedures or (2) illiquid securities that are not restricted securities as designated on the Fund's Schedule of Investments.
PRINCIPAL COST MARKET VALUE FUND - % OF NET ASSETS ACQUISITION AMOUNT ($) COST PER UNIT (000) (000) SECURITIES DATE OR SHARES $ $ $ ----------------------------------------------------------------------------------------------------------------------------- Fixed Income I Fund - 1.6% Aames Mortgage Investment Trust 09/08/05 826,984 99.98 827 827 Aiful Corp. 11/29/05 300,000 98.88 297 290 Air 2 US 01/10/07 486,150 105.76 514 504 ASIF Global Financing XIX 05/18/05 50,000 99.79 50 49 Banco Mercantil del Norte SA 01/23/07 445,000 101.42 451 449 Citigroup Mortgage Loan Trust, Inc. 10/18/06 1,857,601 99.92 1,856 1,858 Citizens Property Insurance Corp. 01/23/07 505,000 114.30 577 592 Corp. Nacional del Cobre de Chile 10/19/06 100,000 99.30 99 102 Countrywide Home Loan Mortgage Pass Through Trust 09/21/05 1,234,931 100.00 1,235 1,242 CVS Lease Pass Through 01/09/07 189,685 99.95 190 187 DG Funding Trust 11/04/03 152 10,575.58 1,607 1,600 Gaz Capital for Gazprom 11/17/06 100,000 100.00 100 99 Gaz Capital for Gazprom 11/17/06 330,000 100.00 330 326 Gaz Capital for Gazprom 11/17/06 990,000 99.87 989 977 Glitnir Banki HF 06/12/06 450,000 99.92 450 465 Glitnir Banki HF 07/21/06 270,000 100.00 270 277 ILFC E-Capital Trust II 09/20/06 290,000 99.55 289 295 Kaupthing Bank Hf 10/03/06 100,000 99.50 99 100 Kaupthing Bank Hf 05/12/06 1,250,000 99.50 1,244 1,320 Mastr Reperforming Loan Trust 03/09/05 634,594 102.29 649 634 Prime Mortgage Trust 11/22/06 2,529,594 98.26 2,485 2,507 Prime Mortgage Trust 10/25/06 2,233,655 98.90 2,209 2,226 RAAC Series 05/08/06 1,158,880 100.00 1,159 1,160 Rabobank Capital Funding II 05/23/05 20,000 101.80 20 19 Rabobank Capital Funding Trust 05/19/05 40,000 100.77 40 39 Resona Preferred Global Securities Cayman, Ltd. 07/20/05 300,000 100.90 303 314 Shinsei Finance Cayman, Ltd. 03/22/06 400,000 100.00 400 398 Sigma Finance, Inc. 07/26/06 690,000 100.00 690 690 SMFG Preferred Capital USD 1, Ltd. 12/13/06 670,000 100.01 670 659 SMFG Preferred Capital USD 1, Ltd. 12/13/06 300,000 100.00 300 295 TNK-BP Finance SA 07/13/06 400,000 99.82 399 418 Truman Capital Mortgage Loan Trust 07/27/06 1,749,718 100.00 1,750 1,750 -------------- 22,668 ==============
156 Notes to Quarterly Report RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS NOTES TO QUARTERLY REPORT, CONTINUED -- JANUARY 31, 2007 (UNAUDITED) - --------------------------------------------------------------------------------
PRINCIPAL COST MARKET VALUE FUND - % OF NET ASSETS ACQUISITION AMOUNT ($) COST PER UNIT (000) (000) SECURITIES DATE OR SHARES $ $ $ ----------------------------------------------------------------------------------------------------------------------------- Fixed Income III Fund - 0.7% Alion Science and Technology Corp. 01/26/07 305,000 101.44 309 307 Aramark Corp. 01/17/07 120,000 101.12 121 123 Aramark Corp. 01/17/07 125,000 100.00 125 127 Banco Mercantil del Norte SA 01/23/07 420,000 101.42 426 424 Catlin Insurance Co., Ltd. 01/11/07 505,000 100.00 505 510 Citizens Property Insurance Corp. 01/23/07 485,000 114.30 554 569 Cosan Finance, Ltd. 01/19/07 490,000 98.32 482 480 CVS Lease Pass Through 12/12/06 314,478 100.16 315 309 DG Funding Trust 11/04/03 118 10,587.51 1,249 1,242 Dresdner Bank AG 04/09/03 760,000 94.17 716 718 ISA Capital do Brasil SA 01/19/07 104,000 100.00 104 104 KBC Bank Funding Trust III 01/26/07 165,000 110.81 183 183 Travelport, Ltd. 09/21/06 645,000 101.91 657 695 Vitro SA de CV 01/25/07 135,000 99.01 134 136 Vitro SA de CV 01/25/07 270,000 98.40 266 273 Wimar Opco LLC 01/03/07 345,000 99.75 344 343 -------------- 6,543 ============== Emerging Markets Fund - 0.2% NovaTek OAO - GDR 07/21/05 45,000 2,331.28 1,049 2,430 ============== Short Duration Bond Fund - 0.4% Arran Residential Mortgages Funding PLC 01/04/07 733,036 100.00 733 733 DG Funding Trust 11/04/03 219 10,537.12 2,308 2,307 ICICI Bank, Ltd. 01/09/07 1,100,000 100.00 1,100 1,103 -------------- 4,143 ==============
Illiquid securities and restricted securities may be priced by the Funds using fair value procedures approved by the Board of Trustees. Notes to Quarterly Report 157 RUSSELL INVESTMENT COMPANY INSTITUTIONAL FUNDS SHAREHOLDER REQUESTS FOR ADDITIONAL INFORMATION -- JANUARY 31, 2007 (UNAUDITED) - -------------------------------------------------------------------------------- As a courtesy to Fund shareholders, 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 Fund at (800) 787-7354, (ii) at www.russell.com, (iii) on the Securities and Exchange Commission's website at www.sec.gov, and (iv) at the Securities and Exchange Commission's public reference room. The Board has delegated to RIMCo, 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. RIMCo has established a proxy voting committee ("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 a Fund. A description of the P&P, Guidelines and Portfolio Holdings Disclosure Policy are contained in the Funds' Statement of Additional Information ("SAI"). The SAI is available (i) free of charge, upon request, by calling the Fund at (800) 787-7354, (ii) at www.russell.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' prospectus 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 call us at (800) 787-7354 or contact your financial institution and we will begin sending you individual copies thirty days after receiving your request. If you wish to receive the Funds' prospectus and each annual and semi-annual report electronically, please call us at (800) 787-7354 or contact your financial institution. 158 Shareholder Requests for Additional Information (RUSSELL LOGO) Russell Investment Company 909 A Street Tacoma, Washington 98402 253-627-7001 800-787-7354 Fax: 253-591-3495 www.russell.com 36-08-068 (1 01/07) ITEM 2. CONTROLS AND PROCEDURES (a) Registrant's principal executive officer and principal financial officer have concluded that Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) are effective, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Act and Rule 13a-15(b) or 15d-15(b) under the Exchange Act as of a date within 90 days of the date this report is filed with the Securities and Exchange Commission. (b) There were no material changes in Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 3. EXHIBITS (a) Certification for principal executive officer of Registrant as required by Rule 30a-2(a) under the Act and certification for 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: /s/ Greg J. Stark ---------------------- Greg J. Stark Principal Executive Officer and Chief Executive Officer Date: March 29, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/ Greg J. Stark ---------------------- Greg J. Stark Principal Executive Officer and Chief Executive Officer Date: March 29, 2007 By: /s/ Mark E. Swanson ------------------------- Mark E. Swanson Principal Financial Officer, Principal Accounting Officer and Treasurer Date: March 29, 2007 EX-99.CERT 2 f47481exv99wcert.txt EX-99.CERT EXHIBIT (A) CERTIFICATION I, Greg J. Stark, certify that: 1. I have reviewed this report on Form N-Q of Russell Investment Company; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed; 4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and 5. The Registrant's other certifying officer and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. Date: March 29, 2007 /s/ Greg J. Stark ------------------------------- Greg J. Stark Principal Executive Officer and Chief Executive Officer CERTIFICATION I, Mark E. Swanson, certify that: 1. I have reviewed this report on Form N-Q of Russell Investment Company; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed; 4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and 5. The Registrant's other certifying officer and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. Date: March 29, 2007 /s/ Mark E. Swanson ------------------------------------------ Mark E. Swanson Principal Financial Officer, Principal Accounting Officer and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----