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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03153

Russell Investment Company

(Exact name of registrant as specified in charter)

909 A Street, Tacoma Washington 98402

(Address of principal executive offices) (Zip code)

Greg J. Lyons, Secretary and Chief Legal Officer

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 1, 2009-January 31, 2010

Table of Contents
Item 1. Schedule of Investments

Table of Contents

LOGO

 

2010 QUARTERLY REPORT

 

 

Russell Funds

 

 

JANUARY 31, 2010

FUND    SHARE CLASS
U.S. Equity Funds   
Russell U.S. Core Equity Fund    A, C, E, I, S, Y
Russell U.S. Quantitative Equity Fund    A, C, E, I, S, Y
Russell U.S. Growth Fund    C, E, I, S
Russell U.S. Value Fund    C, E, I, S
Russell U.S. Small & Mid Cap Fund    A, C, E, I, S, Y
International and Global Equity Funds   
Russell International Developed Markets Fund    A, C, E, I, S, Y
Russell Global Equity Fund    A, C, E, S, Y
Russell Emerging Markets Fund    A, C, E, S, Y
Tax-Managed Equity Funds   
Russell Tax-Managed U.S. Large Cap Fund    C, E, S
Russell Tax-Managed U.S. Mid & Small Cap Fund    C, E, S
Taxable Fixed Income Funds   
Russell Strategic Bond Fund    A, C, E, I, S, Y
Russell Investment Grade Bond Fund    C, E, I, S, Y
Russell Short Duration Bond Fund    A, C, E, S, Y
Tax Exempt Fixed Income Funds   
Russell Tax Exempt Bond Fund    C, E, S
Specialty Funds   
Russell Real Estate Securities Fund    A, C, E, S, Y
Money Market Funds   
Russell Money Market Fund    A, S

 

LOGO

Table of Contents

 

 

Russell Investment Company

Russell Investment Company is a series investment company with 37 different investment portfolios referred to as Funds. This Quarterly Report reports on 16 of these Funds.

Table of Contents

 

Russell Investment Company

Russell Funds

Quarterly Report

January 31, 2010 (Unaudited)

Table of Contents

 

     Page
Russell U.S. Core Equity Fund    3
Russell U.S. Quantitative Equity Fund    8
Russell U.S. Growth Fund    18
Russell U.S. Value Fund    21
Russell U.S. Small & Mid Cap Fund    25
Russell International Developed Markets Fund    34
Russell Global Equity Fund    51
Russell Emerging Markets Fund    60
Russell Tax-Managed U.S. Large Cap Fund    72
Russell Tax-Managed U.S. Mid & Small Cap Fund    76
Russell Strategic Bond Fund    82
Russell Investment Grade Bond Fund    132
Russell Short Duration Bond Fund    159
Russell Tax Exempt Bond Fund    180
Russell Real Estate Securities Fund    191
Russell Money Market Fund    194
Notes to Schedules of Investments    196
Notes to Quarterly Report    198
Shareholder Requests for Additional Information    218

Table of Contents

 

Russell Investment Company - Russell Funds.

Copyright © Russell Investments 2010. All rights reserved.

Russell Investments 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 Financial Services, Inc. member FINRA, part of Russell Investments.

Table of Contents

Russell Investment Company

Russell U.S. Core Equity Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 92.0%        
Consumer Discretionary - 14.3%        

Amazon.com, Inc. (Æ)

    274,866      34,471

Apollo Group, Inc. Class A (Æ)

    46,110      2,794

AutoZone, Inc. (Æ)

    35,000      5,426

Avon Products, Inc.

    166,300      5,012

Bed Bath & Beyond, Inc. (Æ)

    437,797      16,943

Best Buy Co., Inc.

    330,777      12,123

CarMax, Inc. (Æ)

    151,300      3,121

Carnival Corp.

    124,945      4,164

CBS Corp. Class B

    1,186,067      15,336

Comcast Corp. Class A

    2,053,982      31,759

Costco Wholesale Corp.

    267,000      15,334

Darden Restaurants, Inc. (Ñ)

    222,000      8,205

DR Horton, Inc. (Ñ)

    92,000      1,085

eBay, Inc. (Æ)

    585,098      13,469

Estee Lauder Cos., Inc. (The) Class A

    192,786      10,125

Family Dollar Stores, Inc.

    225,800      6,973

Foot Locker, Inc.

    60,400      682

Ford Motor Co. (Æ)

    2,428,498      26,325

Garmin, Ltd. (Ñ)

    21,800      704

Hasbro, Inc.

    208,890      6,382

Hertz Global Holdings, Inc. (Æ)(Ñ)

    76,900      797

Home Depot, Inc.

    975,249      27,317

Hyatt Hotels Corp. (Æ)

    8,232      244

International Game Technology

    332,608      6,100

JC Penney Co., Inc.

    621,180      15,424

Johnson Controls, Inc.

    420,950      11,715

Jones Apparel Group, Inc.

    51,300      741

Kohl’s Corp. (Æ)

    436,054      21,964

Las Vegas Sands Corp. (Æ)(Ñ)

    598,400      9,275

Liberty Media Corp. - Capital Series A (Æ)

    166,297      4,305

Limited Brands, Inc.

    31,300      595

Lowe’s Cos., Inc.

    2,383,067      51,593

Macy’s, Inc.

    113,400      1,806

Magna International, Inc. Class A

    189,705      10,447

Mattel, Inc.

    458,253      9,037

McDonald’s Corp.

    406,100      25,353

News Corp. Class A

    215,000      2,711

Nike, Inc. Class B (Ñ)

    263,900      16,824

NVR, Inc. (Æ)(Ñ)

    23,095      15,800

Office Depot, Inc. (Æ)(Ñ)

    83,800      476

priceline.com, Inc. (Æ)(Ñ)

    59,843      11,690

Pulte Homes, Inc. (Æ)(Ñ)

    803,903      8,457

Ross Stores, Inc.

    9,600      441

Royal Caribbean Cruises, Ltd. (Æ)(Ñ)

    335,000      8,740

Stanley Works (The)

    195,219      10,005

Starbucks Corp. (Æ)

    594,745      12,959

Starwood Hotels & Resorts Worldwide,
Inc. (Ñ)(ö)

    122,100      4,068

Target Corp.

    457,731      23,468

Time Warner Cable, Inc.

    66,276      2,889

Time Warner, Inc.

    119,983      3,294

TJX Cos., Inc.

    665,919      25,312

TRW Automotive Holdings Corp. (Æ)(Ñ)

    16,800      387

VF Corp. (Ñ)

    138,300      9,962

Viacom, Inc. Class B (Æ)

    671,350      19,563
     Principal
Amount ($)
or Shares		      Market
Value
$

Wal-Mart Stores, Inc.

    1,184,950      63,312

Walt Disney Co. (The)

    498,410      14,728
         
        672,232
         
Consumer Staples - 7.6%        

Altria Group, Inc.

    78,410      1,557

Archer-Daniels-Midland Co.

    71,100      2,131

Bunge, Ltd.

    14,600      858

Coca-Cola Co. (The)

    760,250      41,243

Coca-Cola Enterprises, Inc.

    60,800      1,227

Colgate-Palmolive Co.

    340,893      27,282

Constellation Brands, Inc. Class A (Æ)

    69,100      1,111

CVS Caremark Corp.

    93,497      3,026

Diageo PLC - ADR

    105,070      7,060

Dr Pepper Snapple Group, Inc.

    187,300      5,181

General Mills, Inc.

    210,980      15,045

Hansen Natural Corp. (Æ)(Ñ)

    171,152      6,581

HJ Heinz Co.

    157,500      6,872

Kellogg Co.

    266,971      14,528

Kimberly-Clark Corp.

    175,016      10,394

Kraft Foods, Inc. Class A

    353,000      9,764

Kroger Co. (The)

    248,710      5,330

Lorillard, Inc.

    3,800      288

Molson Coors Brewing Co. Class B

    188,231      7,906

Nestle SA - ADR

    193,490      9,193

PepsiCo, Inc.

    1,237,417      73,775

Philip Morris International, Inc.

    473,790      21,562

Procter & Gamble Co. (The)

    807,487      49,701

Reynolds American, Inc.

    28,300      1,505

Smithfield Foods, Inc. (Æ)(Ñ)

    182,580      2,750

SUPERVALU, Inc.

    59,400      874

Tyson Foods, Inc. Class A

    612,185      8,460

Walgreen Co.

    426,128      15,362

Whole Foods Market, Inc. (Æ)(Ñ)

    259,370      7,060
         
        357,626
         
Energy - 9.7%        

Anadarko Petroleum Corp.

    70,400      4,490

Apache Corp.

    158,250      15,630

Arch Coal, Inc. (Ñ)

    982,590      20,703

Cameron International Corp. (Æ)

    321,200      12,096

Chesapeake Energy Corp. (Ñ)

    1,106,038      27,408

Chevron Corp.

    780,114      56,262

Cimarex Energy Co.

    36,200      1,781

ConocoPhillips

    375,242      18,012

Consol Energy, Inc.

    264,105      12,310

Devon Energy Corp.

    51,700      3,459

ENSCO International SPON - ADR

    24,000      937

EOG Resources, Inc.

    94,033      8,502

EQT Corp.

    121,290      5,339

Exxon Mobil Corp.

    442,460      28,508

Forest Oil Corp. (Æ)(Ñ)

    988,385      23,840

Halliburton Co.

    1,051,637      30,718

Helmerich & Payne, Inc. (Ñ)

    23,800      996

Hess Corp.

    338,350      19,553

Marathon Oil Corp.

    484,400      14,440

Massey Energy Co. (Ñ)

    64,669      2,491

 

Russell U.S. Core Equity Fund   3

Table of Contents

Russell Investment Company

Russell U.S. Core Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Nabors Industries, Ltd. (Æ)

    63,000      1,405

National Oilwell Varco, Inc.

    98,300      4,021

Newfield Exploration Co. (Æ)

    24,600      1,204

Nexen, Inc.

    49,400      1,084

Occidental Petroleum Corp.

    1,042,978      81,707

Petrohawk Energy Corp. (Æ)

    292,300      6,527

Rowan Cos., Inc. (Æ)(Ñ)

    20,800      447

Schlumberger, Ltd.

    315,400      20,015

Total SA - ADR

    197,940      11,399

Transocean, Ltd. (Æ)

    176,600      14,965

Valero Energy Corp.

    409,098      7,536
         
        457,785
         
Financial Services - 15.7%        

ACE, Ltd.

    21,100      1,040

Aflac, Inc.

    253,100      12,258

Allstate Corp. (The)

    451,860      13,524

American Express Co.

    466,060      17,552

Ameriprise Financial, Inc.

    235,234      8,995

Annaly Capital Management, Inc. (ö)

    848,155      14,741

AON Corp.

    423,360      16,469

Assured Guaranty, Ltd.

    319,804      7,247

Bank of America Corp.

    3,398,592      51,591

Bank of New York Mellon Corp. (The)

    418,062      12,161

BB&T Corp.

    548,600      15,290

Brown & Brown, Inc.

    230,965      4,065

Capital One Financial Corp.

    548,098      20,203

Charles Schwab Corp. (The)

    1,024,875      18,745

Chubb Corp.

    132,060      6,603

Citigroup, Inc. (Æ)

    766,295      2,544

Deutsche Bank AG (Ñ)

    15,420      940

Fidelity National Financial, Inc. Class A

    106,050      1,368

Fifth Third Bancorp

    213,200      2,652

Genworth Financial, Inc. Class A (Æ)

    709,550      9,820

Goldman Sachs Group, Inc. (The)

    330,482      49,149

iShares Russell 1000 Value Index Fund (Ñ)

    11,388      635

JPMorgan Chase & Co.

    2,134,643      83,123

Lincoln National Corp.

    11,600      285

Mastercard, Inc. Class A

    80,037      20,001

MetLife, Inc.

    775,370      27,386

MFA Financial, Inc. (ö)(Ñ)

    313,425      2,307

Morgan Stanley

    1,224,310      32,787

NYSE Euronext

    122,900      2,877

Old Republic International Corp. (Ñ)

    59,800      633

PartnerRe, Ltd. - ADR

    64,231      4,791

PNC Financial Services Group, Inc.

    374,570      20,762

Prudential Financial, Inc.

    343,370      17,165

Public Storage (ö)

    27,945      2,213

Redwood Trust, Inc. (ö)

    298,340      4,266

RenaissanceRe Holdings, Ltd.

    68,385      3,705

State Street Corp.

    467,630      20,052

SunTrust Banks, Inc.

    418,800      10,189

Travelers Cos., Inc. (The)

    498,773      25,273

Unum Group

    78,000      1,526

US Bancorp

    969,400      24,313

Verisk Analytics, Inc. (Æ)

    4,337      122

Visa, Inc.

    386,612      31,714
     Principal
Amount ($)
or Shares		      Market
Value
$

Wells Fargo & Co.

    3,984,552      113,281

XL Capital, Ltd. Class A

    66,650      1,118
         
        737,481
         
Health Care - 11.5%        

Abbott Laboratories

    965,250      51,100

Aetna, Inc.

    43,400      1,301

Allergan, Inc.

    234,200      13,466

Amgen, Inc. (Æ)

    581,900      34,029

Becton Dickinson and Co.

    58,200      4,387

Boston Scientific Corp. (Æ)

    87,910      759

Brookdale Senior Living, Inc. (Æ)(Ñ)

    249,640      4,556

CareFusion Corp. (Æ)

    97,600      2,513

Cerner Corp. (Æ)

    60,300      4,562

Covance, Inc. (Æ)(Ñ)

    73,800      4,289

Covidien PLC

    334,100      16,892

Express Scripts, Inc. Class A (Æ)

    100,200      8,403

Gilead Sciences, Inc. (Æ)

    451,439      21,791

Hospira, Inc. (Æ)

    210,200      10,645

Intuitive Surgical, Inc. (Æ)(Ñ)

    48,248      15,828

Johnson & Johnson

    636,908      40,036

Life Technologies Corp. (Æ)

    207,200      10,300

McKesson Corp.

    124,100      7,300

Medco Health Solutions, Inc. (Æ)

    113,700      6,990

Medtronic, Inc.

    506,631      21,729

Merck & Co., Inc.

    2,031,206      77,551

Mylan, Inc. (Æ)(Ñ)

    391,210      7,132

Pfizer, Inc.

    5,203,518      97,098

Sanofi-Aventis SA - ADR

    552,200      20,326

Stryker Corp.

    149,500      7,762

Talecris Biotherapeutics Holdings
Corp. (Æ)(Ñ)

    175,600      4,109

Teva Pharmaceutical Industries, Ltd. - ADR

    189,400      10,743

Thermo Fisher Scientific, Inc. (Æ)

    282,770      13,050

UnitedHealth Group, Inc.

    302,500      9,982

WellPoint, Inc. (Æ)

    64,900      4,135

Zimmer Holdings, Inc. (Æ)

    121,800      6,860
         
        539,624
         
Materials and Processing - 3.7%        

Agnico-Eagle Mines, Ltd.

    32,700      1,657

Air Products & Chemicals, Inc.

    156,092      11,857

AK Steel Holding Corp.

    61,000      1,241

Ball Corp.

    214,774      10,908

Dow Chemical Co. (The)

    550,400      14,910

Ecolab, Inc.

    79,200      3,477

EI du Pont de Nemours & Co.

    448,450      14,624

Freeport-McMoRan Copper & Gold, Inc.

    409,610      27,317

Masco Corp.

    34,400      467

Monsanto Co.

    103,600      7,861

Mosaic Co. (The)

    114,096      6,105

Newmont Mining Corp.

    797,045      34,161

Owens-Illinois, Inc. (Æ)

    253,700      6,906

Potash Corp. of Saskatchewan, Inc.

    50,900      5,057

PPG Industries, Inc.

    166,190      9,752

Reliance Steel & Aluminum Co.

    12,700      517

Sherwin-Williams Co. (The)

    37,210      2,357

 

4   Russell U.S. Core Equity Fund

Table of Contents

Russell Investment Company

Russell U.S. Core Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Sonoco Products Co.

    44,600      1,238

Steel Dynamics, Inc.

    69,100      1,049

Teck Resources, Ltd. Class B (Æ)

    280,100      9,193

United States Steel Corp. (Ñ)

    74,500      3,310
         
        173,964
         
Producer Durables - 8.9%        

3M Co.

    544,678      43,841

Accenture PLC Class A

    512,650      21,014

Boeing Co. (The)

    130,265      7,894

Caterpillar, Inc.

    793,848      41,471

CH Robinson Worldwide, Inc.

    82,000      4,644

Corrections Corp. of America (Æ)

    211,148      3,951

CSX Corp.

    369,250      15,826

Cummins, Inc.

    303,700      13,715

Danaher Corp.

    156,700      11,181

Delta Air Lines, Inc. (Æ)

    796,900      9,746

Dover Corp.

    151,530      6,498

Eaton Corp.

    62,980      3,857

Emerson Electric Co.

    245,887      10,214

FedEx Corp.

    63,700      4,991

Fluor Corp.

    216,000      9,793

General Dynamics Corp.

    186,966      12,499

General Electric Co.

    1,011,100      16,258

Goodrich Corp.

    174,500      10,803

Honeywell International, Inc.

    882,372      34,095

Illinois Tool Works, Inc.

    139,900      6,098

Ingersoll-Rand PLC

    36,100      1,172

Lockheed Martin Corp.

    279,720      20,845

Manpower, Inc.

    64,900      3,361

Navistar International Corp. (Æ)(Ñ)

    118,293      4,376

Norfolk Southern Corp.

    102,400      4,819

Northrop Grumman Corp.

    307,500      17,404

PACCAR, Inc. (Ñ)

    173,300      6,244

Parker Hannifin Corp.

    83,245      4,654

Raytheon Co.

    265,258      13,907

Republic Services, Inc. Class A

    160,388      4,297

SPX Corp.

    19,200      1,045

SunPower Corp. (Æ)(Ñ)

    234,700      4,358

Textron, Inc. (Ñ)

    239,950      4,686

Thomas & Betts Corp. (Æ)(Ñ)

    29,000      979

Tyco International, Ltd.

    252,300      8,939

United Parcel Service, Inc. Class B

    154,000      8,897

United Technologies Corp.

    273,360      18,446
         
        416,818
         
Technology - 17.8%        

Amphenol Corp. Class A

    536,240      21,364

Analog Devices, Inc.

    18,800      507

AOL, Inc. (Æ)

    52,843      1,267

Apple, Inc. (Æ)

    445,418      85,574

Applied Materials, Inc.

    838,600      10,214

ASML Holding NV Class G

    189,825      5,932

AU Optronics Corp. - ADR (Ñ)

    28,501      312

Avnet, Inc. (Æ)

    407,235      10,767

Baidu, Inc. - ADR (Æ)

    14,400      5,929

Broadcom Corp. Class A (Æ)

    703,856      18,807
     Principal
Amount ($)
or Shares		      Market
Value
$

Check Point Software Technologies (Æ)

    201,100      6,431

Cisco Systems, Inc. (Æ)

    2,245,161      50,449

Cognizant Technology Solutions Corp. Class A (Æ)

    148,200      6,470

Corning, Inc.

    587,550      10,623

Cree, Inc. (Æ)

    24,800      1,387

Dell, Inc. (Æ)

    2,604,403      33,597

EMC Corp. (Æ)

    833,069      13,887

Equinix, Inc. (Æ)(Ñ)

    26,600      2,560

Google, Inc. Class A (Æ)

    143,859      76,162

Hewlett-Packard Co.

    1,870,943      88,065

Intel Corp.

    2,650,464      51,419

International Business Machines Corp.

    485,149      59,377

International Rectifier Corp. (Æ)(Ñ)

    665,250      12,001

Juniper Networks, Inc. (Æ)

    381,400      9,470

Lam Research Corp. (Æ)(Ñ)

    346,605      11,441

Marvell Technology Group, Ltd. (Æ)

    790,060      13,771

Maxim Integrated Products, Inc.

    536,400      9,376

Micron Technology, Inc. (Æ)

    428,200      3,734

Microsoft Corp.

    1,564,683      44,093

Motorola, Inc. (Æ)

    284,700      1,751

NetApp, Inc. (Æ)

    142,900      4,163

Nokia OYJ - ADR (Ñ)

    83,600      1,144

NVIDIA Corp. (Æ)

    766,804      11,801

Oracle Corp.

    875,627      20,192

Palm, Inc. (Æ)(Ñ)

    437,300      4,544

QUALCOMM, Inc.

    1,332,849      52,234

Research In Motion, Ltd. (Æ)

    222,500      14,009

Salesforce.com, Inc. (Æ)(Ñ)

    108,500      6,895

Seagate Technology

    298,300      4,991

Symantec Corp. (Æ)

    504,032      8,543

Teradyne, Inc. (Æ)(Ñ)

    70,600      659

Texas Instruments, Inc.

    1,809,197      40,707

Tyco Electronics, Ltd.

    84,000      2,090

Western Digital Corp. (Æ)

    24,800      942
         
        839,651
         
Utilities - 2.8%        

Allegheny Energy, Inc.

    768,020      16,090

Ameren Corp.

    30,600      782

American Electric Power Co., Inc.

    138,867      4,812

AT&T, Inc.

    888,224      22,525

BCE, Inc.

    385,950      9,938

CMS Energy Corp. (Ñ)

    39,700      602

Dominion Resources, Inc.

    7,000      262

Duke Energy Corp.

    17,600      291

Edison International

    21,900      730

Great Plains Energy, Inc. (Ñ)

    51,300      916

NiSource, Inc. (Ñ)

    58,000      827

Pepco Holdings, Inc.

    69,300      1,138

PG&E Corp.

    206,960      8,742

Pinnacle West Capital Corp.

    24,900      892

Progress Energy, Inc. - CVO

    6,400      1

Public Service Enterprise Group, Inc.

    249,700      7,638

RRI Energy, Inc. (Æ)

    2,995,115      14,826

Sprint Nextel Corp. (Æ)

    545,800      1,790

Verizon Communications, Inc.

    529,635      15,582

 

Russell U.S. Core Equity Fund   5

Table of Contents

Russell Investment Company

Russell U.S. Core Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$		  
       

Vodafone Group PLC - ADR

    1,024,210      21,980   
           
        130,364   
           
Total Common Stocks
(cost $4,003,067)		         4,325,545   
           
Preferred Stocks - 0.0%        
Financial Services - 0.0%        

Bank of America Corp.

    87,500      1,322   
           
Total Preferred Stocks
(cost $1,318)		         1,322   
           
Short-Term Investments - 6.9%        

Russell U.S. Cash Management Fund (£)

    326,134,883      326,135   
           
Total Short-Term Investments
(cost $326,135)		         326,135   
           
Other Securities - 3.9%        

Russell U.S. Cash Collateral Fund (×)

    108,333,289      108,333   

State Street Securities Lending Quality Trust (×)

    76,431,387      76,196   
           
Total Other Securities
(cost $184,765)		         184,529   
           
Total Investments - 102.8%
(identified cost $4,515,285)		         4,837,531   
Other Assets and Liabilities,
Net - (2.8%)		         (132,348 ) 
           
Net Assets - 100.0%         4,705,183   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

6   Russell U.S. Core Equity Fund

Table of Contents

Russell Investment Company

Russell U.S. Core Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                 
                   
Long Positions                    

Russell 1000 Mini Index

    489      USD   28,734      03/10      (1,234)

S&P 500 E-Mini Index (CME)

    4,485      USD   240,037      03/10      (8,497)

S&P 500 Index (CME)

    300      USD   80,280      03/10      (1,595)

S&P Midcap 400 E-Mini Index (CME)

    416      USD   29,174      03/10      (353)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                     (11,679)
                     

 

 

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
                 

Common Stocks

                  

Consumer Discretionary

      $ 672,232       $ —      $ —      $ 672,232   

Consumer Staples

        357,626         —        —        357,626   

Energy

        457,785         —        —        457,785   

Financial Services

        737,481         —        —        737,481   

Health Care

        539,624         —        —        539,624   

Materials and Processing

        173,964         —        —        173,964   

Producer Durables

        416,818         —        —        416,818   

Technology

        839,651         —        —        839,651   

Utilities

        130,363         1        —        130,364   

Preferred Stocks

        1,322         —        —        1,322   

Short-Term Investments

        —         326,135        —        326,135   

Other Securities

        —         184,529        —        184,529   
                                     

Total Investments

        4,326,866         510,665        —        4,837,531   
                                     

Other Financial Instruments

                  

Futures Contracts

        (11,679 )       —        —        (11,679 ) 
                                     

Total Other Financial Instruments*

        (11,679 )       —        —        (11,679 ) 
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell U.S. Core Equity Fund   7

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 107.3%        
Consumer Discretionary - 12.5%        

Abercrombie & Fitch Co. Class A

    10,300      325

Advance Auto Parts, Inc.

    26,500      1,045

Aeropostale, Inc. (Æ)

    12,400      408

Amazon.com, Inc. (Æ)(û)

    51,500      6,459

American Eagle Outfitters, Inc.

    36,800      585

Apollo Group, Inc. Class A (Æ)(û)

    87,928      5,328

Autoliv, Inc. (Æ)

    63,836      2,733

AutoNation, Inc. (Æ)

    66,098      1,190

AutoZone, Inc. (Æ)

    6,900      1,070

Avon Products, Inc.

    21,100      636

Barnes & Noble, Inc.

    18,710      327

Bed Bath & Beyond, Inc. (Æ)

    19,200      743

Best Buy Co., Inc. (û)

    337,453      12,368

Big Lots, Inc. (Æ)

    9,803      278

BJ’s Wholesale Club, Inc. (Æ)

    122,900      4,153

Bob Evans Farms, Inc.

    56,700      1,582

BorgWarner, Inc. (Æ)

    23,700      832

Brinker International, Inc.

    109,300      1,784

Cablevision Systems Corp. Class A

    50,500      1,295

CarMax, Inc. (Æ)

    77,500      1,599

Carnival Corp.

    436,469      14,548

CBS Corp. Class B

    25,600      331

Central European Distribution Corp. (Æ)

    4,600      147

Chico’s FAS, Inc. (Æ)

    13,200      169

Chipotle Mexican Grill, Inc. Class A (Æ)

    9,500      916

Cinemark Holdings, Inc.

    44,700      634

Coach, Inc. (û)

    268,900      9,379

Columbia Sportswear Co.

    16,700      691

Comcast Corp. Class A (û)

    1,623,385      25,639

Costco Wholesale Corp. (û)

    149,078      8,562

Cracker Barrel Old Country Store, Inc.

    51,387      1,899

Darden Restaurants, Inc.

    202,200      7,473

Dick’s Sporting Goods, Inc. (Æ)

    27,500      615

DIRECTV, Inc. (Æ)(û)

    437,409      13,275

Discovery Communications, Inc. (Æ)

    55,600      1,460

DISH Network Corp. Class A

    602,783      11,007

Dollar Tree, Inc. (Æ)

    170,529      8,445

DreamWorks Animation SKG, Inc. Class A (Æ)

    4,600      179

eBay, Inc. (Æ)(û)

    439,663      10,121

Estee Lauder Cos., Inc. (The) Class A

    129,600      6,807

Expedia, Inc. (Æ)(û)

    469,553      10,053

Family Dollar Stores, Inc.

    103,000      3,181

Fastenal Co.

    1,200      50

Federal Mogul Corp. (Æ)

    46,161      756

Foot Locker, Inc.

    325,116      3,671

Ford Motor Co. (Æ)(û)

    570,000      6,179

Gannett Co., Inc.

    19,800      320

Gap, Inc. (The) (û)

    804,583      15,351

Garmin, Ltd. (û)

    276,000      8,918

Gentex Corp.

    50,934      976

Goodyear Tire & Rubber Co. (The) (Æ)

    27,900      372

Group 1 Automotive, Inc. (Æ)

    54,700      1,586

H&R Block, Inc.

    130,000      2,798

Hanesbrands, Inc. (Æ)

    11,600      266
     Principal
Amount ($)
or Shares		      Market
Value
$

Harley-Davidson, Inc.

    8,900      202

Harman International Industries, Inc.

    152,582      5,424

Hertz Global Holdings, Inc. (Æ)

    19,700      204

Home Depot, Inc.

    111,100      3,112

IAC/InterActiveCorp (Æ)

    29,900      600

International Game Technology

    69,700      1,278

Interpublic Group of Cos., Inc. (Æ)

    26,000      168

Jarden Corp.

    123,000      3,749

JC Penney Co., Inc.

    51,140      1,270

John Wiley & Sons, Inc. Class A

    28,191      1,177

Johnson Controls, Inc.

    72,657      2,022

KB Home

    9,700      148

Kohl’s Corp. (Æ)

    55,979      2,820

Lamar Advertising Co. Class A (Æ)

    6,500      186

Las Vegas Sands Corp. (Æ)

    13,000      201

Leggett & Platt, Inc.

    14,303      261

Lennar Corp. Class A

    18,600      286

Liberty Global, Inc. Class A (Æ)(û)

    145,800      3,700

Liberty Media Corp. - Capital Series A (Æ)

    25,000      647

Liberty Media Corp. - Interactive (Æ)

    99,654      1,034

Liberty Media Corp. - Starz Series A (Æ)

    24,850      1,165

Limited Brands, Inc.

    449,293      8,546

Lowe’s Cos., Inc.

    17,900      388

Macy’s, Inc.

    405,400      6,458

Marriott International, Inc. Class A

    83,355      2,186

Mattel, Inc.

    832,700      16,421

McDonald’s Corp.

    46,900      2,928

McGraw-Hill Cos., Inc. (The)

    57,600      2,042

MDC Holdings, Inc.

    3,000      101

MGM Mirage (Æ)

    44,200      489

NetFlix, Inc. (Æ)

    45,221      2,815

Newell Rubbermaid, Inc.

    23,200      315

News Corp. Class A

    184,051      2,321

News Corp. Class B

    15,427      226

Nike, Inc. Class B

    15,853      1,011

Nordstrom, Inc.

    15,792      545

Nu Skin Enterprises, Inc. Class A

    18,300      425

NVR, Inc. (Æ)

    3,005      2,056

O’Reilly Automotive, Inc. (Æ)

    44,500      1,682

Office Depot, Inc. (Æ)

    135,610      770

Omnicom Group, Inc.

    160,590      5,669

Panera Bread Co. Class A (Æ)

    67,750      4,839

Penn National Gaming, Inc. (Æ)

    19,600      529

PetSmart, Inc.

    49,347      1,271

PF Chang’s China Bistro, Inc. (Æ)

    75,000      2,895

Phillips-Van Heusen Corp.

    3,800      149

Polo Ralph Lauren Corp. Class A (û)

    57,400      4,707

priceline.com, Inc. (Æ)

    4,400      860

RadioShack Corp.

    104,700      2,044

Rent-A-Center, Inc. Class A (Æ)

    115,100      2,302

Ross Stores, Inc.

    315,838      14,506

Royal Caribbean Cruises, Ltd. (Æ)

    7,700      201

Scripps Networks Interactive, Inc.

    79,511      3,395

Sears Holdings Corp. (Æ)

    1,200      112

Service Corp. International

    93,400      716

Signet Jewelers, Ltd. (Æ)

    20,900      572

Stanley Works (The)

    4,700      241

 

8   Russell U.S. Quantitative Equity Fund

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Staples, Inc.

    37,400      877

Starbucks Corp. (Æ)

    496,820      10,826

Starwood Hotels & Resorts Worldwide, Inc. (ö)

    6,100      203

Target Corp.

    108,500      5,563

Tech Data Corp. (Æ)

    77,407      3,154

Thor Industries, Inc.

    8,223      261

Tiffany & Co.

    3,800      154

Time Warner Cable, Inc. (û)

    160,460      6,994

Time Warner, Inc. (û)

    2,470,377      67,812

TJX Cos., Inc. (û)

    382,040      14,521

TRW Automotive Holdings Corp. (Æ)

    13,300      306

Tupperware Brands Corp.

    53,938      2,290

Ulta Salon Cosmetics & Fragrance, Inc. (Æ)

    30,500      592

United Stationers, Inc. (Æ)

    14,200      775

Urban Outfitters, Inc. (Æ)

    27,000      852

Valassis Communications, Inc. (Æ)

    101,000      2,114

VF Corp.

    7,800      562

Viacom, Inc. Class B (Æ)

    282,642      8,236

Virgin Media, Inc.

    63,400      900

WABCO Holdings, Inc.

    13,600      352

Wal-Mart Stores, Inc.

    569,639      30,436

Walt Disney Co. (The)

    109,425      3,233

Washington Post Co. (The) Class B

    912      396

Wendy’s/Arby’s Group, Inc.

    62,900      290

WESCO International, Inc. (Æ)

    68,700      1,904

Western Union Co. (The)

    236,400      4,383

Whirlpool Corp.

    91,716      6,895

Williams-Sonoma, Inc.

    87,881      1,668

WMS Industries, Inc. (Æ)

    20,200      749

Wolverine World Wide, Inc.

    20,600      545

Wyndham Worldwide Corp.

    5,000      105

Wynn Resorts, Ltd. Class T (Æ)

    3,000      186

Yum! Brands, Inc.

    20,500      701
         
        526,736
         
Consumer Staples - 9.5%        

Altria Group, Inc.

    84,242      1,673

Archer-Daniels-Midland Co. (û)

    2,005,366      60,101

Bunge, Ltd.

    80,100      4,709

Campbell Soup Co. (û)

    231,173      7,654

Casey’s General Stores, Inc.

    90,400      2,774

Chiquita Brands International, Inc. (Æ)

    24,900      365

Church & Dwight Co., Inc.

    62,601      3,774

Coca-Cola Co. (The)

    319,432      17,329

Coca-Cola Enterprises, Inc. (û)

    427,209      8,625

Colgate-Palmolive Co.

    44,530      3,564

ConAgra Foods, Inc. (û)

    848,900      19,304

CVS Caremark Corp.

    215,692      6,982

Dean Foods Co. (Æ)

    126,700      2,234

Del Monte Foods Co.

    84,100      957

Dr Pepper Snapple Group, Inc.

    28,400      786

Energizer Holdings, Inc. (Æ)

    96,900      5,378

General Mills, Inc.

    10,700      763

Green Mountain Coffee Roasters, Inc. (Æ)

    12,100      1,026

Hansen Natural Corp. (Æ)

    57,111      2,196

Herbalife, Ltd.

    36,395      1,414

Hershey Co. (The)

    58,959      2,148
     Principal
Amount ($)
or Shares		      Market
Value
$

HJ Heinz Co.

    15,900      694

Hormel Foods Corp.

    44,202      1,711

JM Smucker Co. (The)

    27,923      1,677

Kellogg Co.

    17,000      925

Kimberly-Clark Corp. (û)

    891,348      52,937

Kraft Foods, Inc. Class A

    39,600      1,095

Kroger Co. (The) (û)

    589,100      12,624

Lorillard, Inc.

    121,210      9,176

Mead Johnson Nutrition Co.

    3,500      158

Molson Coors Brewing Co. Class B

    133,200      5,594

NBTY, Inc. (Æ)

    23,200      1,033

Pepsi Bottling Group, Inc.

    45,000      1,674

PepsiAmericas, Inc.

    16,400      476

PepsiCo, Inc. (û)

    225,754      13,459

Philip Morris International, Inc.

    340,265      15,486

Procter & Gamble Co. (The) (û)

    764,035      47,026

Reynolds American, Inc. (û)

    121,700      6,474

Safeway, Inc. (û)

    679,000      15,244

Sara Lee Corp.

    338,600      4,111

Smithfield Foods, Inc. (Æ)

    31,400      473

SUPERVALU, Inc.

    11,200      165

Sysco Corp. (û)

    1,303,900      36,496

Tyson Foods, Inc. Class A

    524,721      7,252

Walgreen Co.

    287,521      10,365

Whole Foods Market, Inc. (Æ)

    38,300      1,043
         
        401,124
         
Energy - 10.8%        

Alpha Natural Resources, Inc. (Æ)

    7,738      314

Anadarko Petroleum Corp.

    29,800      1,901

Apache Corp. (û)

    134,400      13,275

Arch Coal, Inc.

    10,784      227

Atwood Oceanics, Inc. (Æ)

    8,600      288

Baker Hughes, Inc.

    73,575      3,331

BJ Services Co.

    38,900      804

Cabot Oil & Gas Corp.

    27,500      1,052

Cameron International Corp. (Æ)

    15,000      565

Chesapeake Energy Corp.

    18,100      449

Chevron Corp. (û)

    703,588      50,743

Cimarex Energy Co.

    68,210      3,357

Concho Resources, Inc. (Æ)

    11,700      525

ConocoPhillips (û)

    1,027,112      49,301

Consol Energy, Inc.

    800      37

Devon Energy Corp.

    184,176      12,323

Diamond Offshore Drilling, Inc.

    7,200      659

Dresser-Rand Group, Inc. (Æ)

    20,000      592

El Paso Corp.

    44,900      456

Encore Acquisition Co. (Æ)

    6,800      324

ENSCO International PLC - ADR

    121,400      4,738

EOG Resources, Inc.

    11,100      1,004

EQT Corp.

    69,000      3,037

EXCO Resources, Inc.

    62,719      1,100

Exterran Holdings, Inc. (Æ)

    49,435      1,003

Exxon Mobil Corp. (û)

    1,762,021      113,527

First Solar, Inc. (Æ)

    1,400      159

FMC Technologies, Inc. (Æ)

    10,100      537

Frontier Oil Corp.

    184,486      2,299

 

Russell U.S. Quantitative Equity Fund   9

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Halliburton Co.

    188,313      5,501

Helix Energy Solutions Group, Inc. (Æ)

    61,869      656

Hess Corp.

    40,578      2,345

Holly Corp.

    64,000      1,670

Marathon Oil Corp. (û)

    575,500      17,156

Massey Energy Co.

    6,300      243

Murphy Oil Corp. (û)

    279,988      14,302

Nabors Industries, Ltd. (Æ)

    219,700      4,899

National Oilwell Varco, Inc. (û)

    197,600      8,082

Newfield Exploration Co. (Æ)

    150,500      7,365

Noble Corp.

    106,600      4,298

Noble Energy, Inc.

    15,000      1,109

Occidental Petroleum Corp. (û)

    565,760      44,322

Oceaneering International, Inc. (Æ)

    15,000      820

Oil States International, Inc. (Æ)

    6,565      242

Patterson-UTI Energy, Inc.

    4,100      63

Peabody Energy Corp.

    567,100      23,886

Petrohawk Energy Corp. (Æ)

    15,700      351

Pioneer Natural Resources Co.

    4,900      215

Plains Exploration & Production Co. (Æ)

    5,100      170

Quicksilver Resources, Inc. (Æ)

    10,700      142

Range Resources Corp.

    18,300      842

Rosetta Resources, Inc. (Æ)

    71,220      1,464

Rowan Cos., Inc. (Æ)

    261,080      5,608

SandRidge Energy, Inc. (Æ)

    31,200      264

Schlumberger, Ltd.

    110,948      7,041

SEACOR Holdings, Inc. (Æ)

    5,500      386

Southwestern Energy Co. (Æ)

    259,200      11,114

Spectra Energy Corp.

    9,300      198

St. Mary Land & Exploration Co.

    3,500      112

Tesoro Corp.

    291,485      3,644

Unit Corp. (Æ)

    6,300      287

Valero Energy Corp. (û)

    375,400      6,915

Walter Energy, Inc. Class A

    44,400      2,882

Whiting Petroleum Corp. (Æ)

    1,500      100

Williams Cos., Inc. (The)

    22,700      473

XTO Energy, Inc.

    105,317      4,694
         
        451,788
         
Financial Services - 17.8%        

Affiliated Managers Group, Inc. (Æ)

    6,000      363

Aflac, Inc. (û)

    231,900      11,231

Alliance Data Systems Corp. (Æ)

    5,000      297

Allied World Assurance Co. Holdings, Ltd.

    14,900      667

Allstate Corp. (The) (û)

    1,524,705      45,634

American Express Co.

    56,000      2,109

American Financial Group, Inc.

    80,600      2,000

American International Group, Inc. (Æ)

    33,500      812

AmeriCredit Corp. (Æ)

    135,154      2,834

Ameriprise Financial, Inc.

    27,500      1,052

Annaly Capital Management, Inc. (ö)

    46,900      815

Arch Capital Group, Ltd. (Æ)

    69,700      4,986

Aspen Insurance Holdings, Ltd.

    155,500      4,141

Associated Banc-Corp.

    10,300      131

Assurant, Inc.

    223,170      7,014

AvalonBay Communities, Inc. (ö)

    48,446      3,712

Axis Capital Holdings, Ltd.

    242,579      6,986
     Principal
Amount ($)
or Shares		      Market
Value
$

BancorpSouth, Inc.

    6,300      144

Bank of America Corp.

    702,823      10,669

Bank of New York Mellon Corp. (The)

    332,386      9,669

BB&T Corp. (û)

    445,745      12,423

BlackRock, Inc. Class A (û)

    33,038      7,064

Boston Properties, Inc. (ö)

    3,100      201

Brandywine Realty Trust (ö)

    39,700      446

Broadridge Financial Solutions, Inc.

    65,800      1,429

Camden Property Trust (ö)

    91,517      3,548

Capital One Financial Corp. (û)

    398,368      14,684

CB Richard Ellis Group, Inc. Class A (Æ)

    58,400      718

Charles Schwab Corp. (The)

    27,200      498

Chubb Corp. (û)

    618,890      30,945

Cincinnati Financial Corp.

    9,700      256

Citigroup, Inc. (Æ)

    1,209,801      4,017

City National Corp.

    1,100      54

CME Group, Inc. Class A

    16,600      4,761

CNA Financial Corp. (Æ)

    159,500      3,747

Comerica, Inc.

    82,200      2,837

Cullen/Frost Bankers, Inc.

    50,000      2,566

Digital Realty Trust, Inc. (ö)

    176,500      8,472

Discover Financial Services

    662,101      9,058

Dun & Bradstreet Corp.

    1,700      134

Eaton Vance Corp.

    48,780      1,405

Endurance Specialty Holdings, Ltd.

    121,597      4,380

Equity Residential (ö)

    4,300      138

Everest Re Group, Ltd.

    68,036      5,833

Factset Research Systems, Inc.

    12,800      806

Federal Realty Investment Trust (ö)

    2,300      148

Federated Investors, Inc. Class B

    76,730      1,947

Fidelity National Financial, Inc. Class A

    2,900      37

Fidelity National Information Services, Inc.

    96,700      2,278

Fifth Third Bancorp (û)

    835,500      10,394

First American Corp.

    14,800      438

First Horizon National Corp. (Æ)

    33,398      433

Fiserv, Inc. (Æ)

    32,700      1,473

Franklin Resources, Inc. (û)

    116,514      11,538

Genworth Financial, Inc. Class A (Æ)

    1,066,700      14,763

Global Payments, Inc.

    62,870      2,798

Goldman Sachs Group, Inc. (The) (û)

    282,100      41,954

Greenhill & Co., Inc.

    3,100      241

Hartford Financial Services Group, Inc.

    51,500      1,236

HCC Insurance Holdings, Inc.

    9,900      268

HCP, Inc. (ö)

    20,200      573

Health Care REIT, Inc. (ö)

    54,432      2,341

Hospitality Properties Trust (ö)

    2,900      64

Host Hotels & Resorts, Inc. (Æ)(ö)

    66,624      706

HRPT Properties Trust (ö)

    103,800      692

Hudson City Bancorp, Inc. (û)

    2,259,076      29,978

Huntington Bancshares, Inc.

    265,000      1,269

IntercontinentalExchange, Inc. (Æ)

    8,900      850

Invesco, Ltd.

    41,600      803

Investment Technology Group, Inc. (Æ)

    112,273      2,302

Jefferies Group, Inc.

    37,400      955

Jones Lang LaSalle, Inc.

    5,100      291

JPMorgan Chase & Co. (û)

    1,636,770      63,736

KeyCorp

    63,300      455

 

10   Russell U.S. Quantitative Equity Fund

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Lazard, Ltd. Class A

    16,300      628

Legg Mason, Inc.

    4,200      108

Lender Processing Services, Inc.

    12,000      465

Liberty Property Trust (ö)

    17,400      529

Lincoln National Corp.

    110,700      2,721

Loews Corp.

    59,900      2,143

M&T Bank Corp.

    6,100      450

Macerich Co. (The) (ö)

    8,700      268

Mack-Cali Realty Corp. (ö)

    2,300      75

Marshall & Ilsley Corp.

    116,400      804

Mastercard, Inc. Class A

    6,700      1,674

MetLife, Inc. (û)

    153,661      5,427

Moody’s Corp. (û)

    327,626      9,039

Morgan Stanley

    44,600      1,194

MSCI, Inc. Class A (Æ)

    27,100      801

NASDAQ OMX Group, Inc. (The) (Æ)

    142,700      2,567

Nationwide Health Properties, Inc. (ö)

    4,500      148

Northern Trust Corp. (û)

    152,441      7,701

NYSE Euronext (û)

    692,382      16,209

Old Republic International Corp.

    250,934      2,657

PartnerRe, Ltd. - ADR

    97,254      7,254

People’s United Financial, Inc.

    100,100      1,619

PNC Financial Services Group, Inc. (û)

    206,689      11,457

Principal Financial Group, Inc.

    34,800      802

Progressive Corp. (The) (û)

    376,700      6,246

Protective Life Corp.

    161,300      2,718

Prudential Financial, Inc. (û)

    200,467      10,021

Public Storage (ö)

    428,895      33,960

Raymond James Financial, Inc.

    8,700      220

Rayonier, Inc. (ö)

    49,326      2,069

Regions Financial Corp.

    74,600      474

RenaissanceRe Holdings, Ltd.

    54,707      2,964

SEI Investments Co.

    94,228      1,669

Senior Housing Properties Trust (ö)

    25,100      523

Simon Property Group, Inc. (ö)

    143,439      10,328

SL Green Realty Corp. (ö)

    9,100      414

SLM Corp. (Æ)

    73,700      776

St. Joe Co. (The) (Æ)

    9,900      257

StanCorp Financial Group, Inc.

    21,643      930

State Street Corp.

    45,300      1,943

SunTrust Banks, Inc.

    23,700      577

T Rowe Price Group, Inc. (û)

    233,645      11,594

Taubman Centers, Inc. (ö)

    4,700      149

TCF Financial Corp.

    18,800      275

TD Ameritrade Holding Corp. (Æ)

    22,200      394

Torchmark Corp.

    4,100      184

Total System Services, Inc.

    88,300      1,264

Transatlantic Holdings, Inc.

    83,100      4,129

Travelers Cos., Inc. (The) (û)

    839,930      42,559

UDR, Inc. (ö)

    11,200      174

Unitrin, Inc.

    9,839      214

Unum Group

    1,617,547      31,655

US Bancorp

    559,637      14,036

Ventas, Inc. (ö)

    8,000      338

Verisk Analytics, Inc. (Æ)

    6,300      177

Visa, Inc.

    127,900      10,492

Waddell & Reed Financial, Inc. Class A

    23,300      730
     Principal
Amount ($)
or Shares		      Market
Value
$

Wells Fargo & Co. (û)

    1,460,522      41,523

White Mountains Insurance Group, Ltd.

    600      192

XL Capital, Ltd. Class A

    287,500      4,821

Zions Bancorporation

    55,100      1,045
         
        749,421
         
Health Care - 15.8%        

Abbott Laboratories

    53,100      2,811

Aetna, Inc. (û)

    305,875      9,167

Allergan, Inc.

    18,800      1,081

Allscripts-Misys Healthcare Solutions, Inc. (Æ)

    19,100      314

AMERIGROUP Corp. Class A (Æ)

    99,800      2,540

AmerisourceBergen Corp. Class A (û)

    1,325,627      36,137

Amgen, Inc. (Æ)(û)

    692,019      40,469

Amylin Pharmaceuticals, Inc. (Æ)

    14,100      254

Baxter International, Inc.

    20,243      1,166

Beckman Coulter, Inc.

    74,200      4,850

Becton Dickinson and Co. (û)

    61,794      4,657

Biogen Idec, Inc. (Æ)(û)

    100,400      5,395

Boston Scientific Corp. (Æ)(û)

    1,025,707      8,852

Bristol-Myers Squibb Co.

    169,057      4,118

Cardinal Health, Inc. (û)

    1,154,754      38,188

CareFusion Corp. (Æ)

    173,338      4,463

Celgene Corp. (Æ)

    24,477      1,390

Centene Corp. (Æ)

    71,900      1,384

Cephalon, Inc. (Æ)

    28,947      1,848

Cerner Corp. (Æ)

    12,600      953

Charles River Laboratories International, Inc. (Æ)

    23,800      865

Cigna Corp.

    37,100      1,253

Community Health Systems, Inc. (Æ)

    11,200      365

Cooper Cos., Inc. (The)

    4,700      166

Covance, Inc. (Æ)

    11,300      657

Coventry Health Care, Inc. (Æ)

    429,301      9,822

Covidien PLC

    475,714      24,052

Dendreon Corp. (Æ)

    46,900      1,299

Edwards Lifesciences Corp. (Æ)

    11,600      1,040

Eli Lilly & Co. (û)

    1,383,884      48,713

Emergency Medical Services Corp. Class A (Æ)

    15,400      809

Express Scripts, Inc. Class A (Æ)

    7,700      646

Forest Laboratories, Inc. (Æ)(û)

    1,844,295      54,665

Genzyme Corp. (Æ)

    18,239      990

Gilead Sciences, Inc. (Æ)(û)

    395,776      19,104

Health Management Associates, Inc. Class A (Æ)

    52,100      346

Health Net, Inc. (Æ)

    185,800      4,507

Healthspring, Inc. (Æ)

    12,688      221

Henry Schein, Inc. (Æ)

    3,000      162

Hill-Rom Holdings, Inc.

    99,433      2,324

Hologic, Inc. (Æ)

    24,600      371

Hospira, Inc. (Æ)

    21,800      1,104

Humana, Inc. (Æ)

    676,807      32,906

Idexx Laboratories, Inc. (Æ)

    10,400      546

IMS Health, Inc.

    10,000      216

Intuitive Surgical, Inc. (Æ)

    2,200      722

 

Russell U.S. Quantitative Equity Fund   11

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Inverness Medical Innovations, Inc. (Æ)

    17,000      686

Johnson & Johnson (û)

    820,028      51,547

Kinetic Concepts, Inc. (Æ)

    73,900      3,051

King Pharmaceuticals, Inc. (Æ)

    621,790      7,468

Laboratory Corp. of America Holdings (Æ)

    1,100      78

Life Technologies Corp. (Æ)

    26,100      1,297

LifePoint Hospitals, Inc. (Æ)

    4,200      126

Magellan Health Services, Inc. (Æ)

    61,033      2,410

McKesson Corp. (û)

    335,473      19,733

Medco Health Solutions, Inc. (Æ)

    71,781      4,413

Mednax, Inc. (Æ)

    19,400      1,103

Medtronic, Inc.

    527,600      22,629

Merck & Co., Inc.

    153,131      5,847

Millipore Corp. (Æ)

    5,500      379

Mylan, Inc. (Æ)

    421,200      7,678

Owens & Minor, Inc.

    27,159      1,089

Par Pharmaceutical Cos., Inc. (Æ)

    88,205      2,322

Patterson Cos., Inc. (Æ)

    13,100      374

PDL BioPharma, Inc.

    395,128      2,529

PerkinElmer, Inc.

    16,600      334

Pfizer, Inc.

    3,271,876      61,053

Quest Diagnostics, Inc.

    98,800      5,500

ResMed, Inc. (Æ)

    2,700      138

St. Jude Medical, Inc. (Æ)

    17,700      668

Stryker Corp.

    24,780      1,287

Tenet Healthcare Corp. (Æ)

    92,900      515

Thermo Fisher Scientific, Inc. (Æ)

    6,200      286

United Therapeutics Corp. (Æ)

    3,700      220

UnitedHealth Group, Inc. (û)

    776,937      25,639

Universal American Corp. (Æ)

    40,492      541

Universal Health Services, Inc. Class B

    189,500      5,526

Vertex Pharmaceuticals, Inc. (Æ)

    1,300      50

Watson Pharmaceuticals, Inc. Class B (Æ)

    37,575      1,442

WebMD Health Corp. Class A (Æ)

    20,843      812

WellPoint, Inc. (Æ)(û)

    654,342      41,695

Zimmer Holdings, Inc. (Æ)

    127,400      7,175
         
        665,548
         
Materials and Processing - 3.3%        

Air Products & Chemicals, Inc.

    32,400      2,461

Albemarle Corp.

    29,800      1,064

Alcoa, Inc.

    367,076      4,673

Allegheny Technologies, Inc.

    3,200      131

Armstrong World Industries, Inc. (Æ)

    35,569      1,296

Ashland, Inc.

    87,700      3,544

Ball Corp.

    33,900      1,722

Beacon Roofing Supply, Inc. (Æ)

    70,300      1,181

Bemis Co., Inc.

    3,500      98

Cabot Corp.

    5,400      139

Celanese Corp. Class A

    10,000      291

CF Industries Holdings, Inc.

    19,638      1,824

Commercial Metals Co.

    700      10

Compass Minerals International, Inc.

    2,300      145

Crown Holdings, Inc. (Æ)

    66,000      1,571

Cytec Industries, Inc.

    42,700      1,593

Dow Chemical Co. (The)

    144,001      3,901

Eagle Materials, Inc.

    14,600      333
     Principal
Amount ($)
or Shares		      Market
Value
$

Eastman Chemical Co.

    48,593      2,747

Ecolab, Inc. (û)

    172,700      7,582

EI du Pont de Nemours & Co.

    455,117      14,841

FMC Corp.

    2,600      132

Freeport-McMoRan Copper & Gold, Inc. Class B

    43,133      2,877

General Cable Corp. (Æ)

    46,600      1,356

Greif, Inc. Class A

    17,200      832

Huntsman Corp.

    465,454      5,674

International Flavors & Fragrances, Inc.

    85,813      3,413

International Paper Co.

    426,527      9,772

Lennox International, Inc.

    44,072      1,684

Lubrizol Corp.

    248,235      18,292

Masco Corp.

    37,578      510

MeadWestvaco Corp.

    70,439      1,695

Monsanto Co.

    26,590      2,018

NewMarket Corp.

    8,300      749

Newmont Mining Corp.

    79,397      3,403

Nucor Corp.

    43,516      1,775

Owens-Illinois, Inc. (Æ)

    171,300      4,663

Packaging Corp. of America

    22,740      501

PPG Industries, Inc.

    12,300      722

Praxair, Inc.

    18,700      1,408

Precision Castparts Corp.

    8,600      905

Reliance Steel & Aluminum Co.

    138,114      5,627

Rock-Tenn Co. Class A

    27,720      1,183

RPM International, Inc.

    48,000      898

Schnitzer Steel Industries, Inc. Class A

    55,984      2,267

Scotts Miracle-Gro Co. (The) Class A

    18,813      747

Sealed Air Corp.

    53,500      1,061

Sherwin-Williams Co. (The)

    15,300      969

Sigma-Aldrich Corp.

    1,800      86

Silgan Holdings, Inc.

    40,350      2,092

Sonoco Products Co.

    7,200      200

Southern Copper Corp. (û)

    272,800      7,265

Temple-Inland, Inc.

    39,000      677

Terra Industries, Inc.

    6,000      190

Timken Co.

    29,519      661

Universal Forest Products, Inc.

    34,507      1,171

Valmont Industries, Inc.

    2,300      160

Valspar Corp.

    16,600      440

Weyerhaeuser Co.

    4,200      168
         
        139,390
         
Producer Durables - 11.9%        

3M Co. (û)

    296,671      23,879

Accenture PLC Class A

    209,345      8,581

Aecom Technology Corp. (Æ)

    21,000      566

AGCO Corp. (Æ)

    112,000      3,462

Agilent Technologies, Inc. (Æ)

    23,200      650

Alaska Air Group, Inc. (Æ)

    65,600      2,056

Alexander & Baldwin, Inc.

    4,500      144

AO Smith Corp.

    39,725      1,691

Arkansas Best Corp.

    77,700      1,751

Automatic Data Processing, Inc.

    13,900      567

BE Aerospace, Inc. (Æ)

    7,300      164

Boeing Co. (The) (û)

    141,700      8,587

 

12   Russell U.S. Quantitative Equity Fund

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Brink’s Co. (The)

    10,000      234

Brink’s Home Security Holdings, Inc. (Æ)

    18,900      775

Bucyrus International, Inc. Class A

    3,400      178

Burlington Northern Santa Fe Corp.

    17,600      1,755

Carlisle Cos., Inc.

    10,400      349

Caterpillar, Inc.

    34,820      1,819

CH Robinson Worldwide, Inc.

    67,100      3,800

Cintas Corp.

    6,700      168

Con-way, Inc.

    66,398      1,900

Convergys Corp. (Æ)

    179,200      1,917

Cooper Industries PLC

    87,300      3,745

Copa Holdings SA Class A

    21,952      1,141

Corrections Corp. of America (Æ)

    32,700      612

Crane Co.

    56,900      1,737

CSX Corp.

    20,400      874

Cummins, Inc. (û)

    118,827      5,366

Deere & Co. (û)

    187,567      9,369

Dover Corp. (û)

    210,600      9,031

DynCorp International, Inc. Class A (Æ)

    32,000      384

Eaton Corp.

    108,950      6,672

EMCOR Group, Inc. (Æ)

    130,200      3,133

Emerson Electric Co.

    159,037      6,606

Expeditors International of Washington, Inc.

    1,600      55

FedEx Corp. (û)

    215,771      16,906

Flowserve Corp.

    7,500      676

Fluor Corp.

    166,000      7,526

Gardner Denver, Inc.

    8,500      339

General Dynamics Corp.

    84,500      5,649

General Electric Co.

    1,328,376      21,360

Goodrich Corp.

    88,300      5,467

Harsco Corp.

    26,200      780

Hewitt Associates, Inc. Class A (Æ)

    97,100      3,834

Honeywell International, Inc.

    98,529      3,807

Illinois Tool Works, Inc.

    148,985      6,494

Ingersoll-Rand PLC

    51,514      1,672

Iron Mountain, Inc. (Æ)

    29,000      663

ITT Corp.

    58,182      2,811

Jacobs Engineering Group, Inc. (Æ)

    1,400      53

JB Hunt Transport Services, Inc.

    4,200      129

Joy Global, Inc.

    2,700      124

Kansas City Southern (Æ)

    4,500      134

KBR, Inc.

    327,000      6,125

Kirby Corp. (Æ)

    9,100      295

L-3 Communications Holdings, Inc. (û)

    189,389      15,784

Lexmark International, Inc. Class A (Æ)

    272,585      7,030

Lockheed Martin Corp. (û)

    223,154      16,629

Manpower, Inc.

    211,111      10,933

McDermott International, Inc. (Æ)

    5,100      120

Mettler-Toledo International, Inc. (Æ)

    2,000      195

Monster Worldwide, Inc. (Æ)

    29,900      466

Nalco Holding Co.

    20,100      474

Navistar International Corp. (Æ)

    11,385      421

Nordson Corp.

    9,500      537

Norfolk Southern Corp.

    2,900      136

Northrop Grumman Corp. (û)

    1,205,327      68,222

Oshkosh Corp.

    13,700      494
     Principal
Amount ($)
or Shares		      Market
Value
$

PACCAR, Inc.

    26,424      952

Parker Hannifin Corp.

    6,600      369

Paychex, Inc.

    1,400      41

Pitney Bowes, Inc.

    4,200      88

Quanta Services, Inc. (Æ)

    29,700      541

Raytheon Co. (û)

    969,264      50,819

Robert Half International, Inc.

    30,544      822

Rockwell Automation, Inc.

    86,403      4,168

Rockwell Collins, Inc.

    22,000      1,170

Roper Industries, Inc.

    3,000      150

RR Donnelley & Sons Co.

    98,163      1,946

Shaw Group, Inc. (The) (Æ)

    600      19

Skywest, Inc.

    98,700      1,444

Spirit Aerosystems Holdings, Inc. Class A (Æ)

    26,700      573

SPX Corp.

    3,000      163

SYKES Enterprises, Inc. (Æ)

    7,200      173

TeleTech Holdings, Inc. (Æ)

    47,600      906

Terex Corp. (Æ)

    3,700      72

Textron, Inc.

    13,700      268

Thomas & Betts Corp. (Æ)

    12,900      436

Tidewater, Inc.

    55,500      2,599

Toro Co.

    42,985      1,674

Towers Watson & Co. Class A

    13,200      576

TransDigm Group, Inc.

    3,000      145

Trinity Industries, Inc.

    26,524      415

Triumph Group, Inc.

    12,300      626

Tutor Perini Corp. (Æ)

    39,542      754

Tyco International, Ltd.

    907,500      32,153

Unifirst Corp.

    5,900      296

Union Pacific Corp. (û)

    169,800      10,273

United Parcel Service, Inc. Class B

    234,003      13,518

United Technologies Corp. (û)

    627,494      42,343

URS Corp. (Æ)

    37,683      1,691

UTi Worldwide, Inc.

    113,700      1,561

Waste Management, Inc.

    21,200      679

Waters Corp. (Æ)

    3,100      177

Werner Enterprises, Inc.

    83,395      1,650

World Fuel Services Corp.

    15,800      380

WW Grainger, Inc.

    19,100      1,896

Zebra Technologies Corp. Class A (Æ)

    25,700      671
         
        499,200
         
Technology - 18.6%        

Activision Blizzard, Inc. (Æ)

    30,200      307

Adobe Systems, Inc. (Æ)(û)

    172,848      5,583

Advanced Micro Devices, Inc. (Æ)

    43,000      321

Affiliated Computer Services, Inc. Class A (Æ)

    44,700      2,750

Akamai Technologies, Inc. (Æ)

    6,600      163

Altera Corp.

    27,000      576

Amdocs, Ltd. (Æ)

    175,300      5,012

Amphenol Corp. Class A

    127,700      5,088

Analog Devices, Inc.

    43,400      1,170

AOL, Inc. (Æ)

    32,627      782

Apple, Inc. (Æ)

    35,500      6,820

Applied Materials, Inc.

    28,700      349

 

Russell U.S. Quantitative Equity Fund   13

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Arris Group, Inc. (Æ)

    128,900      1,294

Arrow Electronics, Inc. (Æ)

    129,564      3,404

Avnet, Inc. (Æ)

    450,061      11,900

Benchmark Electronics, Inc. (Æ)

    62,208      1,133

BMC Software, Inc. (Æ)

    59,700      2,307

Broadcom Corp. Class A (Æ)

    165,900      4,433

Brocade Communications Systems, Inc. (Æ)

    40,000      275

CA, Inc.

    7,000      154

CACI International, Inc. Class A (Æ)

    18,900      907

Cadence Design Systems, Inc. (Æ)

    73,100      425

Cisco Systems, Inc. (Æ)(û)

    1,221,967      27,458

Citrix Systems, Inc. (Æ)

    12,600      523

Cognizant Technology Solutions Corp. Class A (Æ)(û)

    107,116      4,677

CommScope, Inc. (Æ)

    6,500      177

Computer Sciences Corp. (Æ)(û)

    647,904      33,237

Corning, Inc. 2008

    64,000      1,157

Cree, Inc. (Æ)

    10,100      565

Crown Castle International Corp. (Æ)

    29,100      1,075

CSG Systems International, Inc. (Æ)

    35,000      679

Cypress Semiconductor Corp. (Æ)

    36,100      363

Dell, Inc. (Æ)(û)

    977,287      12,607

Diebold, Inc.

    5,200      138

Dolby Laboratories, Inc. Class A (Æ)

    6,800      342

Earthlink, Inc.

    274,485      2,226

EchoStar Corp. (Æ)

    41,805      803

Electronic Arts, Inc. Series C (Æ)

    247,888      4,036

EMC Corp. (Æ)

    192,750      3,213

Equinix, Inc. (Æ)

    3,400      327

F5 Networks, Inc. (Æ)

    17,900      885

Flextronics International, Ltd. (Æ)

    164,062      1,040

Google, Inc. Class A (Æ)(û)

    71,162      37,675

Harris Corp. (û)

    519,000      22,275

Hewlett-Packard Co. (û)

    451,100      21,233

Ingram Micro, Inc. Class A (Æ)

    480,179      8,115

Integrated Device Technology, Inc. (Æ)

    113,320      642

Intel Corp. (û)

    4,305,799      83,532

International Business Machines Corp. (û)

    661,974      81,019

Intersil Corp. Class A

    36,700      494

Intuit, Inc. (Æ)

    20,900      619

Jabil Circuit, Inc.

    481,500      6,972

JDS Uniphase Corp. (Æ)

    291,864      2,294

Juniper Networks, Inc. (Æ)(û)

    177,500      4,407

KLA-Tencor Corp.

    48,400      1,365

Lam Research Corp. (Æ)

    10,900      360

Linear Technology Corp.

    27,800      726

LSI Corp. (Æ)

    88,803      443

Mantech International Corp. Class A (Æ)

    36,300      1,739

Marvell Technology Group, Ltd. (Æ)

    43,300      755

Maxim Integrated Products, Inc. (û)

    192,200      3,360

McAfee, Inc. (Æ)

    9,500      358

Microchip Technology, Inc.

    52,700      1,360

Micron Technology, Inc. (Æ)

    19,900      173

Micros Systems, Inc. (Æ)

    40,500      1,157

Microsoft Corp. (û)

    3,086,172      86,968

Molex, Inc.

    279,167      5,628

Motorola, Inc. (Æ)(û)

    1,522,717      9,365
     Principal
Amount ($)
or Shares		      Market
Value
$

National Semiconductor Corp.

    24,300      322

NCR Corp. (Æ)

    153,600      1,839

NetApp, Inc. (Æ)

    60,200      1,754

NeuStar, Inc. Class A (Æ)

    17,973      404

Novell, Inc. (Æ)

    612,663      2,739

Novellus Systems, Inc. (Æ)

    40,300      842

Nuance Communications, Inc. (Æ)

    11,000      165

NVIDIA Corp. (Æ)

    51,308      790

Omnivision Technologies, Inc. (Æ)

    92,300      1,191

ON Semiconductor Corp. (Æ)

    9,400      68

Oracle Corp. (û)

    1,315,782      30,342

Plantronics, Inc.

    42,300      1,117

Plexus Corp. (Æ)

    56,200      1,911

PMC - Sierra, Inc. (Æ)

    19,500      155

QLogic Corp. (Æ)

    20,591      354

QUALCOMM, Inc. (û)

    218,490      8,563

Rambus, Inc. (Æ)

    12,500      274

Red Hat, Inc. (Æ)

    25,500      694

RF Micro Devices, Inc. (Æ)

    297,200      1,144

Rovi Corp. (Æ)

    45,153      1,304

SAIC, Inc. (Æ)

    339,500      6,223

Salesforce.com, Inc. (Æ)

    12,600      801

SanDisk Corp. (Æ)

    247,647      6,295

SBA Communications Corp. Class A (Æ)

    15,400      510

Seagate Technology (û)

    2,823,989      47,245

Silicon Laboratories, Inc. (Æ)

    10,700      452

Sybase, Inc. (Æ)

    25,500      1,037

Symantec Corp. (Æ)(û)

    1,625,655      27,555

SYNNEX Corp. (Æ)

    45,200      1,196

Synopsys, Inc. (Æ)

    332,227      7,066

Tellabs, Inc.

    1,354,259      8,708

Teradata Corp. (Æ)

    68,900      1,927

Teradyne, Inc. (Æ)

    3,500      33

Texas Instruments, Inc. (û)

    1,147,724      25,824

Trimble Navigation, Ltd. (Æ)

    7,500      172

Tyco Electronics, Ltd. (û)

    412,735      10,269

Varian Semiconductor Equipment Associates, Inc. (Æ)

    5,600      164

VeriFone Holdings, Inc. (Æ)

    65,259      1,161

VeriSign, Inc. (Æ)

    110,202      2,525

Vishay Intertechnology, Inc. (Æ)

    30,700      231

VMware, Inc. Class A (Æ)

    10,300      468

Western Digital Corp. (Æ)(û)

    1,031,040      39,169

Xilinx, Inc.

    42,400      1,000

Yahoo!, Inc. (Æ)

    206,017      3,092
         
        782,810
         
Utilities - 7.1%        

AES Corp. (The) (Æ)

    494,100      6,241

AGL Resources, Inc.

    10,900      385

Ameren Corp.

    556,900      14,229

American Electric Power Co., Inc. (û)

    248,200      8,600

American Water Works Co., Inc.

    392,412      8,555

AT&T, Inc. (û)

    3,264,391      82,785

Atmos Energy Corp.

    36,600      1,011

Calpine Corp. (Æ)

    44,500      487

CenturyTel, Inc. (û)

    249,343      8,480

 

14   Russell U.S. Quantitative Equity Fund

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

CMS Energy Corp.

    109,500      1,661

Consolidated Edison, Inc.

    8,000      350

Constellation Energy Group, Inc.

    334,546      10,799

Dominion Resources, Inc.

    96,638      3,620

DPL, Inc.

    31,200      837

DTE Energy Co. (û)

    112,173      4,716

Duke Energy Corp.

    315,508      5,215

Dynegy, Inc. Class A (Æ)

    9,284      15

Edison International (û)

    641,000      21,358

Energen Corp.

    40,300      1,771

Entergy Corp. (û)

    30,590      2,334

Exelon Corp.

    121,864      5,559

FirstEnergy Corp.

    9,397      410

FPL Group, Inc. (û)

    240,618      11,733

Integrys Energy Group, Inc.

    36,755      1,538

ITC Holdings Corp.

    1,500      81

Laclede Group, Inc. (The)

    33,700      1,087

MDU Resources Group, Inc.

    34,383      757

MetroPCS Communications, Inc. (Æ)

    27,100      153

Mirant Corp. (Æ)

    152,264      2,142

National Fuel Gas Co.

    19,400      910

NII Holdings, Inc. (Æ)

    315,800      10,339

NiSource, Inc.

    67,642      964

Northeast Utilities

    6,500      165

NRG Energy, Inc. (Æ)(û)

    154,600      3,727

NV Energy, Inc.

    285,457      3,289

OGE Energy Corp.

    11,800      427

Oneok, Inc.

    1,700      72

PG&E Corp. (û)

    191,300      8,081

Pinnacle West Capital Corp.

    103,500      3,707

PPL Corp.

    30,119      888

Public Service Enterprise Group, Inc. (û)

    326,476      9,987

Questar Corp.

    14,600      606

Qwest Communications International, Inc. (û)

    67,700      285

Sempra Energy (û)

    198,100      10,054

Southern Co.

    800      26

Southern Union Co.

    49,400      1,089

Sprint Nextel Corp. (Æ)

    763,508      2,504

TECO Energy, Inc.

    36,361      566

Telephone & Data Systems, Inc.

    12,027      380

Time Warner Telecom, Inc. Class A (Æ)

    15,400      237

UGI Corp.

    100,500      2,463

Verizon Communications, Inc. (û)

    941,583      27,701

Wisconsin Energy Corp.

    2,600      127

Xcel Energy, Inc.

    36,300      754
         
        296,257
         

Total Common Stocks

(cost $4,305,181)

         4,512,274
         
Short-Term Investments - 2.0%        

Russell U.S. Cash Management Fund

    84,225,613      84,226
         

Total Short-Term Investments

(cost $84,226)

         84,226
         

Total Investments - 109.3%

(identified cost $4,389,407)

         4,596,500
         
     Principal
Amount ($)
or Shares		        Market
Value
$		  
Securities Sold Short - (9.5%)        
Consumer Discretionary - (2.0%)        

BorgWarner, Inc. (Æ)

    (127,900 )       (4,488 ) 

Capella Education Co. (Æ)

    (28,195 )       (2,069 ) 

Clear Channel Outdoor Holdings, Inc. Class A (Æ)

    (118,500 )       (1,203 ) 

Deckers Outdoor Corp. (Æ)

    (12,400 )       (1,217 ) 

Dress Barn, Inc. (Æ)

    (71,400 )       (1,681 ) 

Federal Mogul Corp. (Æ)

    (58,694 )       (961 ) 

Fuel Systems Solutions, Inc. (Æ)

    (27,000 )       (962 ) 

Gentex Corp.

    (77,331 )       (1,482 ) 

Harley-Davidson, Inc.

    (137,800 )       (3,134 ) 

KB Home

    (106,400 )       (1,626 ) 

Las Vegas Sands Corp. (Æ)

    (392,700 )       (6,087 ) 

Liberty Media Corp. - Capital Series A (Æ)

    (308,432 )       (7,985 ) 

Marriott International, Inc. Class A

    (261,087 )       (6,848 ) 

MGM Mirage (Æ)

    (358,400 )       (3,964 ) 

O’Reilly Automotive, Inc. (Æ)

    (138,500 )       (5,235 ) 

Pulte Homes, Inc. (Æ)

    (289,000 )       (3,040 ) 

Ryland Group, Inc.

    (73,800 )       (1,643 ) 

Sally Beauty Holdings, Inc. (Æ)

    (340,125 )       (2,837 ) 

Service Corp. International

    (451,500 )       (3,463 ) 

Sotheby’s Class A

    (140,700 )       (3,270 ) 

Starwood Hotels & Resorts Worldwide, Inc. (ö)

    (226,800 )       (7,557 ) 

VF Corp.

    (49,900 )       (3,594 ) 

Wynn Resorts, Ltd. Class T (Æ)

    (100,200 )       (6,200 ) 

Yum! Brands, Inc.

    (100,200 )       (3,429 ) 
           
        (83,975 ) 
           
Consumer Staples - (0.3%)        

Bunge, Ltd.

    (59,900 )       (3,522 ) 

McCormick & Co., Inc.

    (168,400 )       (6,113 ) 

Molson Coors Brewing Co. Class B

    (80,800 )       (3,393 ) 

Vector Group, Ltd.

    (42,867 )       (600 ) 
           
        (13,628 ) 
           
Energy - (1.2%)        

Anadarko Petroleum Corp.

    (136,900 )       (8,731 ) 

El Paso Corp.

    (223,700 )       (2,271 ) 

EQT Corp.

    (175,300 )       (7,717 ) 

Exterran Holdings, Inc. (Æ)

    (109,955 )       (2,230 ) 

First Solar, Inc. (Æ)

    (53,100 )       (6,016 ) 

Forest Oil Corp. (Æ)

    (161,751 )       (3,901 ) 

Noble Energy, Inc.

    (50,100 )       (3,704 ) 

Petrohawk Energy Corp. (Æ)

    (331,200 )       (7,396 ) 

Range Resources Corp.

    (151,900 )       (6,987 ) 

SandRidge Energy, Inc. (Æ)

    (247,941 )       (2,098 ) 

Weatherford International, Ltd. (Æ)

    (48,700 )       (764 ) 
           
        (51,815 ) 
           
Financial Services - (1.9%)        

Associated Banc-Corp.

    (133,445 )       (1,697 ) 

CapitalSource, Inc.

    (731,967 )       (3,506 ) 

CB Richard Ellis Group, Inc. Class A (Æ)

    (33,731 )       (415 ) 

Citigroup, Inc. (Æ)

    (2,357,100 )       (7,826 ) 

Cousins Properties, Inc. (ö)

    (95,200 )       (729 ) 

 

Russell U.S. Quantitative Equity Fund   15

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		        Market
Value
$		  
       

E*Trade Financial Corp. (Æ)

    (1,087,500 )       (1,653 ) 

Fifth Third Bancorp

    (582,300 )       (7,244 ) 

Forest City Enterprises, Inc. Class A (Æ)

    (286,373 )       (3,239 ) 

GLG Partners, Inc. (Æ)

    (312,300 )       (915 ) 

Huntington Bancshares, Inc.

    (576,600 )       (2,762 ) 

KeyCorp

    (991,100 )       (7,116 ) 

Markel Corp. (Æ)

    (5,481 )       (1,781 ) 

MGIC Investment Corp. (Æ)

    (275,600 )       (1,667 ) 

Northern Trust Corp.

    (141,100 )       (7,128 ) 

Pico Holdings, Inc. (Æ)

    (19,200 )       (603 ) 

Plum Creek Timber Co., Inc. (ö)

    (131,300 )       (4,749 ) 

Potlatch Corp. (ö)

    (118,600 )       (3,641 ) 

Regions Financial Corp.

    (1,662,000 )       (10,554 ) 

SLM Corp. (Æ)

    (327,800 )       (3,452 ) 

SunTrust Banks, Inc.

    (317,900 )       (7,735 ) 

Zenith National Insurance Corp.

    (96,000 )       (2,678 ) 
           
        (81,090 ) 
           
Health Care - (1.1%)        

Abraxis Bioscience, Inc. (Æ)

    (12,000 )       (490 ) 

Acorda Therapeutics, Inc. (Æ)

    (40,700 )       (1,139 ) 

Alnylam Pharmaceuticals, Inc. (Æ)

    (61,527 )       (1,040 ) 

AMAG Pharmaceuticals, Inc. (Æ)

    (36,688 )       (1,614 ) 

athenahealth, Inc. (Æ)

    (28,000 )       (1,102 ) 

Becton Dickinson and Co.

    (40,900 )       (3,083 ) 

Cepheid, Inc. (Æ)

    (136,400 )       (2,004 ) 

Cerner Corp. (Æ)

    (81,900 )       (6,196 ) 

Incyte Corp., Ltd. (Æ)

    (155,600 )       (1,662 ) 

Pharmaceutical Product Development, Inc.

    (162,600 )       (3,798 ) 

Savient Pharmaceuticals, Inc. (Æ)

    (55,100 )       (707 ) 

Seattle Genetics, Inc. (Æ)

    (180,521 )       (1,863 ) 

St. Jude Medical, Inc. (Æ)

    (154,700 )       (5,837 ) 

Theravance, Inc. (Æ)

    (84,300 )       (925 ) 

Vertex Pharmaceuticals, Inc. (Æ)

    (265,647 )       (10,201 ) 

Vivus, Inc. (Æ)

    (122,600 )       (1,036 ) 

Volcano Corp. (Æ)

    (77,200 )       (1,527 ) 
           
        (44,224 ) 
           
Materials and Processing- (0.8%)        

Century Aluminum Co. (Æ)

    (256,900 )       (2,908 ) 

Eagle Materials, Inc.

    (32,000 )       (730 ) 

Intrepid Potash, Inc. (Æ)

    (104,202 )       (2,552 ) 

RTI International Metals, Inc. (Æ)

    (79,000 )       (1,955 ) 

United States Steel Corp.

    (144,600 )       (6,425 ) 

USG Corp. (Æ)

    (283,600 )       (3,406 ) 

Vulcan Materials Co.

    (143,600 )       (6,346 ) 

Weyerhaeuser Co.

    (186,600 )       (7,445 ) 
           
        (31,767 ) 
           
Producer Durables - (0.9%)        

Allegiant Travel Co. Class A (Æ)

    (35,800 )       (1,833 ) 

CoStar Group, Inc. (Æ)

    (25,500 )       (1,030 ) 

Covanta Holding Corp. (Æ)

    (182,800 )       (3,199 ) 

Healthcare Services Group, Inc.

    (50,260 )       (1,030 ) 
     Principal
Amount ($)
or Shares		        Market
Value
$		  

Iron Mountain, Inc. (Æ)

    (215,500 )       (4,926 ) 

Manitowoc Co., Inc. (The)

    (235,400 )       (2,566 ) 

PACCAR, Inc.

    (299,800 )       (10,802 ) 

Roper Industries, Inc.

    (100,900 )       (5,053 ) 

Southwest Airlines Co.

    (155,400 )       (1,761 ) 

US Airways Group, Inc. (Æ)

    (82,600 )       (439 ) 

Waste Management, Inc.

    (108,300 )       (3,470 ) 
           
        (36,109 ) 
           
Technology - (1.2%)        

American Tower Corp. Class A (Æ)

    (74,900 )       (3,180 ) 

Amkor Technology, Inc. (Æ)

    (154,900 )       (881 ) 

ArcSight, Inc. (Æ)

    (35,000 )       (831 ) 

AsiaInfo Holdings, Inc. (Æ)

    (57,400 )       (1,372 ) 

Cognex Corp.

    (50,000 )       (819 ) 

Crown Castle International Corp. (Æ)

    (84,400 )       (3,118 ) 

Electronic Arts, Inc. (Æ)

    (155,600 )       (2,533 ) 

Formfactor, Inc. (Æ)

    (171,355 )       (2,651 ) 

II-VI, Inc. (Æ)

    (4,675 )       (125 ) 

Infinera Corp. (Æ)

    (53,900 )       (369 ) 

Marvell Technology Group, Ltd. (Æ)

    (181,700 )       (3,167 ) 

McAfee, Inc. (Æ)

    (82,900 )       (3,125 ) 

MEMC Electronic Materials, Inc. (Æ)

    (316,500 )       (3,982 ) 

Microchip Technology, Inc.

    (244,900 )       (6,321 ) 

Salesforce.com, Inc. (Æ)

    (101,300 )       (6,438 ) 

Take-Two Interactive Software, Inc. (Æ)

    (190,300 )       (1,766 ) 

Tessera Technologies, Inc. (Æ)

    (108,100 )       (1,856 ) 

Viasat, Inc. (Æ)

    (34,300 )       (937 ) 

VMware, Inc. Class A (Æ)

    (169,000 )       (7,674 ) 
           
        (51,145 ) 
           
Utilities - (0.2%)        

Atlantic Tele-Network, Inc.

    (6,300 )       (305 ) 

Level 3 Communications, Inc. (Æ)

    (1,969,900 )       (2,738 ) 

Neutral Tandem, Inc. (Æ)

    (22,828 )       (353 ) 

Otter Tail Corp.

    (21,242 )       (459 ) 

Southern Co.

    (106,500 )       (3,408 ) 
           
        (7,263 ) 
           

Total Securities Sold Short

(proceeds $373,275)

         (401,016 ) 
           

Other Assets and Liabilities,

Net - 0.2%

         7,859   
           
Net Assets - 100.0%         4,203,343   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

16   Russell U.S. Quantitative Equity Fund

Table of Contents

Russell Investment Company

Russell U.S. Quantitative Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
                   
Long Positions                  

Russell 1000 Mini Index

    195      USD   11,458      03/10      (184)

S&P 500 E-Mini Index (CME)

    651      USD   34,842      03/10      (1,713)

S&P 500 Index (CME)

    171      USD   45,760      03/10      (932)

S&P Midcap 400 E-Mini Index (CME)

    108      USD   7,574      03/10      (131)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                     (2,960)
                     

 

 

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
                 

Common Stocks

                  

Consumer Discretionary

      $ 526,736       $ —      $ —      $ 526,736   

Consumer Staples

        401,124         —        —        401,124   

Energy

        451,788         —        —        451,788   

Financial Services

        749,421         —        —        749,421   

Health Care

        665,548         —        —        665,548   

Materials and Processing

        139,390         —        —        139,390   

Producer Durables

        499,200         —        —        499,200   

Technology

        782,810         —        —        782,810   

Utilities

        296,257         —        —        296,257   

Short-Term Investments

        —         84,226        —        84,226   
                                     

Total Investments

        4,512,274         84,226        —        4,596,500   
                                     

Securities Sold Short

        (401,016 )       —        —        (401,016 ) 

Other Financial Instruments

                  

Futures Contracts

        (2,960 )       —        —        (2,960 ) 
                                     

Total Other Financial Instruments*

        (2,960 )       —        —        (2,960 ) 
                                     

 

*   Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell U.S. Quantitative Equity Fund   17

Table of Contents

Russell Investment Company

Russell U.S. Growth Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 98.4%        
Consumer Discretionary - 14.3%        

Amazon.com, Inc. (Æ)

    9,980      1,252

Apollo Group, Inc. Class A (Æ)

    11,718      710

Avon Products, Inc.

    13,980      421

Bed Bath & Beyond, Inc. (Æ)

    3,200      124

Best Buy Co., Inc.

    3,351      123

Coach, Inc.

    5,830      203

Costco Wholesale Corp.

    6,323      363

Darden Restaurants, Inc.

    3,600      133

DreamWorks Animation SKG, Inc. Class A (Æ)

    3,787      148

Fastenal Co. (Ñ)

    14,500      601

Guess?, Inc.

    5,592      222

Harley-Davidson, Inc. (Ñ)

    8,580      195

International Game Technology

    9,550      175

Kohl’s Corp. (Æ)

    2,400      121

Las Vegas Sands Corp. (Æ)(Ñ)

    17,540      272

Lowe’s Cos., Inc.

    70,770      1,532

Nike, Inc. Class B

    16,368      1,044

Nordstrom, Inc.

    7,702      266

Polo Ralph Lauren Corp. Class A

    2,174      178

priceline.com, Inc. (Æ)(Ñ)

    2,800      547

Royal Caribbean Cruises, Ltd. (Æ)(Ñ)

    7,000      183

Scripps Networks Interactive, Inc.

    3,104      133

Staples, Inc.

    59,100      1,387

Starbucks Corp. (Æ)

    25,200      549

Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö)

    7,060      235

Target Corp.

    9,872      506

VF Corp.

    3,100      223

Wal-Mart Stores, Inc.

    4,400      235

Walt Disney Co. (The)

    10,776      318

Weight Watchers International, Inc.

    900      26

Western Union Co. (The)

    19,598      363
         
        12,788
         
Consumer Staples - 8.1%        

Coca-Cola Co. (The)

    16,996      922

Colgate-Palmolive Co.

    9,270      742

CVS Caremark Corp.

    8,720      282

Diageo PLC - ADR

    4,198      282

General Mills, Inc.

    10,440      744

HJ Heinz Co.

    3,600      157

Mead Johnson Nutrition Co.

    5,100      231

PepsiCo, Inc.

    27,080      1,615

Philip Morris International, Inc.

    16,601      756

Procter & Gamble Co. (The)

    12,300      757

Walgreen Co.

    19,200      692
         
        7,180
         
Energy - 5.7%        

Cameron International Corp. (Æ)

    6,030      227

EOG Resources, Inc.

    8,100      732

Exxon Mobil Corp.

    5,400      348

First Solar, Inc. (Æ)(Ñ)

    3,080      349

Hess Corp.

    11,275      652
     Principal
Amount ($)
or Shares		      Market
Value
$

National Oilwell Varco, Inc.

    12,800      524

Occidental Petroleum Corp.

    5,080      398

Petrohawk Energy Corp. (Æ)

    32,681      730

Schlumberger, Ltd.

    14,927      947

Southwestern Energy Co. (Æ)

    4,550      195
         
        5,102
         
Financial Services - 10.3%        

ACE, Ltd.

    2,928      144

American Express Co.

    8,600      324

Bank of America Corp.

    39,018      592

Bank of New York Mellon Corp. (The)

    23,300      678

Charles Schwab Corp. (The)

    17,780      325

CME Group, Inc. Class A

    2,050      588

Fifth Third Bancorp

    23,810      296

Goldman Sachs Group, Inc. (The)

    4,594      683

IntercontinentalExchange, Inc. (Æ)

    9,340      892

JPMorgan Chase & Co.

    2,600      101

Mastercard, Inc. Class A

    4,465      1,116

MetLife, Inc.

    3,300      117

Morgan Stanley

    4,800      129

Prudential Financial, Inc.

    3,000      150

State Street Corp.

    19,100      819

T Rowe Price Group, Inc. (Ñ)

    5,770      286

Visa, Inc.

    23,950      1,965
         
        9,205
         
Health Care - 17.1%        

Alcon, Inc.

    1,190      185

Allergan, Inc.

    15,800      909

Amgen, Inc. (Æ)

    5,780      338

Celgene Corp. (Æ)

    11,410      648

Cerner Corp. (Æ)

    8,120      614

Express Scripts, Inc. Class A (Æ)

    3,150      264

Gilead Sciences, Inc. (Æ)

    44,023      2,125

Henry Schein, Inc. (Æ)(Ñ)

    5,300      287

Hospira, Inc. (Æ)

    4,700      238

Intuitive Surgical, Inc. (Æ)

    720      236

Johnson & Johnson

    14,700      924

McKesson Corp.

    7,110      418

Medco Health Solutions, Inc. (Æ)

    13,800      848

Medtronic, Inc.

    11,000      472

Merck & Co., Inc.

    6,200      237

Myriad Genetics, Inc. (Æ)

    22,064      519

Novo Nordisk A/S - ADR

    9,600      647

NuVasive, Inc. (Æ)(Ñ)

    14,700      406

Pfizer, Inc.

    25,150      469

St. Jude Medical, Inc. (Æ)

    11,347      428

Teva Pharmaceutical Industries, Ltd. - ADR

    30,750      1,744

Thermo Fisher Scientific, Inc. (Æ)

    5,810      268

UnitedHealth Group, Inc.

    35,301      1,165

WellPoint, Inc. (Æ)

    5,746      366

Zimmer Holdings, Inc. (Æ)

    8,700      490
         
        15,245
         

 

18   Russell U.S. Growth Fund

Table of Contents

Russell Investment Company

Russell U.S. Growth Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Materials and Processing - 4.9%        

Air Products & Chemicals, Inc.

    2,700      205

Alcoa, Inc.

    17,190      219

Dow Chemical Co. (The)

    8,100      219

Ecolab, Inc. (Ñ)

    9,100      400

Freeport-McMoRan Copper & Gold, Inc. Class B

    2,500      167

Monsanto Co.

    19,292      1,464

Praxair, Inc.

    6,400      482

Rio Tinto PLC - ADR (Æ)

    1,921      373

Syngenta AG - ADR

    11,500      587

Teck Resources, Ltd. Class B (Æ)

    6,500      213
         
        4,329
         
Producer Durables - 7.2%        

3M Co.

    2,300      185

Alliant Techsystems, Inc. (Æ)(Ñ)

    1,588      125

Automatic Data Processing, Inc.

    9,200      375

Caterpillar, Inc.

    8,080      422

Cummins, Inc.

    8,660      391

Expeditors International of Washington, Inc.

    17,900      610

FedEx Corp.

    4,925      386

Fluor Corp.

    9,742      442

Goodrich Corp.

    4,000      248

Honeywell International, Inc.

    23,998      927

Illinois Tool Works, Inc.

    3,600      157

SunPower Corp. (Æ)(Ñ)

    5,300      98

Terex Corp. (Æ)(Ñ)

    17,945      351

Textron, Inc. (Ñ)

    27,529      538

Tyco International, Ltd.

    6,200      220

United Parcel Service, Inc. Class B

    10,300      595

United Technologies Corp.

    3,200      216

Waters Corp. (Æ)

    2,970      169
         
        6,455
         
Technology - 30.4%        

Adobe Systems, Inc. (Æ)

    51,485      1,663

Alcatel-Lucent - ADR (Æ)(Ñ)

    73,900      246

Apple, Inc. (Æ)

    21,537      4,138

Applied Materials, Inc.

    54,380      662

ASML Holding NV

    10,480      327

Baidu, Inc. - ADR (Æ)

    457      188

Broadcom Corp. Class A (Æ)

    17,660      472

Cisco Systems, Inc. (Æ)

    55,000      1,236

Cognizant Technology Solutions Corp. Class A (Æ)

    6,100      266

Cree, Inc. (Æ)

    2,910      163

Crown Castle International Corp. (Æ)

    24,600      909

Dell, Inc. (Æ)

    14,200      183

EMC Corp. (Æ)

    21,870      365

Google, Inc. Class A (Æ)

    6,315      3,343

Hewlett-Packard Co.

    35,309      1,662

Intel Corp.

    12,000      233
     Principal
Amount ($)
or Shares		      Market
Value
$		  

International Business Machines Corp.

    3,400      416   

Intuit, Inc. (Æ)

    26,100      773   

Juniper Networks, Inc. (Æ)

    2,440      61   

Lam Research Corp. (Æ)

    4,850      160   

Maxim Integrated Products, Inc.

    12,100      211   

Micron Technology, Inc. (Æ)

    33,110      289   

Microsoft Corp.

    34,500      972   

Oracle Corp.

    67,583      1,558   

QUALCOMM, Inc.

    79,319      3,108   

Red Hat, Inc. (Æ)

    9,100      248   

Salesforce.com, Inc. (Æ)(Ñ)

    4,000      254   

SAP AG - ADR (Ñ)

    6,200      281   

Symantec Corp. (Æ)

    33,000      559   

Teradata Corp. (Æ)

    23,100      646   

Texas Instruments, Inc.

    9,600      216   

Varian Semiconductor Equipment Associates, Inc. (Æ)

    3,600      106   

VeriSign, Inc. (Æ)

    33,300      763   

Xilinx, Inc.

    18,810      444   
           
        27,121   
           
Utilities - 0.4%        

FPL Group, Inc.

    4,713      230   

Millicom International Cellular SA

    1,840      131   
           
        361   
           
Total Common Stocks
(cost $76,862)		         87,786   
           
Short-Term Investments - 1.3%        

Russell U.S. Cash Management Fund (£)

    1,155,514      1,156   
           
Total Short-Term Investments
(cost $1,156)		         1,156   
           
Other Securities - 4.7%        

Russell U.S. Cash Collateral Fund (×)

    2,451,350      2,451   

State Street Securities Lending Quality Trust (×)

    1,729,478      1,724   
           
Total Other Securities
(cost $4,181)		         4,175   
           
Total Investments - 104.4%
(identified cost $82,199)		         93,117   
Other Assets and Liabilities,
Net - (4.4%)		         (3,947 ) 
           
Net Assets - 100.0%         89,170   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell U.S. Growth Fund   19

Table of Contents

Russell Investment Company

Russell U.S. Growth Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
Long Positions                    

Nasdaq 100 E-Mini Index (CME)

    8      USD   278      03/10      (9)

S&P 500 E-Mini Index (CME)

    3      USD   161      03/10      (3)

S&P 500 Index (CME)

    4      USD   1,070      03/10      (20)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                     (32)
                     

 

 

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
                 

Common Stocks

                  

Consumer Discretionary

      $ 12,788       $ —      $ —      $ 12,788   

Consumer Staples

        7,180         —        —        7,180   

Energy

        5,102         —        —        5,102   

Financial Services

        9,205         —        —        9,205   

Health Care

        15,245         —        —        15,245   

Materials and Processing

        4,329         —        —        4,329   

Producer Durables

        6,455         —        —        6,455   

Technology

        27,121         —        —        27,121   

Utilities

        361         —        —        361   

Short-Term Investments

        —         1,156        —        1,156   

Other Securities

        —         4,175        —        4,175   
                                     

Total Investments

        87,786         5,331        —        93,117   
                                     

Other Financial Instruments

                  

Futures Contracts

        (32 )       —        —        (32 ) 
                                     

Total Other Financial Instruments*

        (32 )       —        —        (32 ) 
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

20   Russell U.S. Growth Fund

Table of Contents

Russell Investment Company

Russell U.S. Value Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 96.7%        
Consumer Discretionary - 10.8%        

Autoliv, Inc. (Æ)(Ñ)

    4,700      201

Comcast Corp. Class A

    14,000      222

DIRECTV, Inc. (Æ)

    49,991      1,517

DR Horton, Inc. (Ñ)

    45,500      536

eBay, Inc. (Æ)

    31,680      729

Foot Locker, Inc.

    30,600      345

Ford Motor Co. (Æ)(Ñ)

    33,200      360

Fortune Brands, Inc.

    5,500      229

Gannett Co., Inc. (Ñ)

    31,200      504

Guess?, Inc.

    9,000      357

H&R Block, Inc.

    16,400      353

Hertz Global Holdings, Inc. (Æ)(Ñ)

    25,400      263

Jarden Corp.

    7,100      216

JC Penney Co., Inc.

    21,500      534

Kohl’s Corp. (Æ)

    8,400      423

Magna International, Inc. Class A

    9,700      534

McDonald’s Corp.

    15,490      967

Newell Rubbermaid, Inc. (Ñ)

    19,500      265

Pulte Homes, Inc. (Æ)(Ñ)

    151,387      1,593

Regal Entertainment Group Class A

    23,400      346

Ryland Group, Inc. (Ñ)

    73,300      1,632

Snap-On, Inc.

    6,300      257

Stanley Works (The) (Ñ)

    9,600      492

Viacom, Inc. Class B (Æ)

    14,100      411

Wal-Mart Stores, Inc.

    25,260      1,350

Wyndham Worldwide Corp. (Ñ)

    24,500      514

Yum! Brands, Inc.

    24,430      836
         
        15,986
         
Consumer Staples - 4.7%        

Corn Products International, Inc.

    11,600      330

CVS Caremark Corp.

    15,700      508

General Mills, Inc.

    9,300      663

JM Smucker Co. (The) (Ñ)

    5,350      321

Kimberly-Clark Corp.

    23,620      1,403

Kraft Foods, Inc. Class A

    23,500      650

Lorillard, Inc.

    4,600      348

PepsiCo, Inc.

    11,000      656

Procter & Gamble Co. (The)

    12,200      751

Reynolds American, Inc. (Ñ)

    6,800      362

Safeway, Inc.

    32,100      720

Smithfield Foods, Inc. (Æ)(Ñ)

    7,500      113

Tyson Foods, Inc. Class A

    15,400      213
         
        7,038
         
Energy - 13.0%        

Alpha Natural Resources, Inc. (Æ)

    11,900      483

Arch Coal, Inc.

    63,800      1,344

Chesapeake Energy Corp. (Ñ)

    63,500      1,574

Chevron Corp.

    42,032      3,031

ConocoPhillips

    33,100      1,589

Devon Energy Corp.

    26,520      1,774

El Paso Corp.

    29,900      304

Exxon Mobil Corp.

    25,400      1,637
     Principal
Amount ($)
or Shares		      Market
Value
$

Halliburton Co.

    26,200      765

Hess Corp.

    9,000      520

Marathon Oil Corp.

    20,600      614

Nabors Industries, Ltd. (Æ)

    11,400      254

Newfield Exploration Co. (Æ)

    19,900      974

Noble Corp.

    17,500      706

Occidental Petroleum Corp.

    3,700      290

Patterson-UTI Energy, Inc. (Ñ)

    15,200      234

Peabody Energy Corp.

    28,300      1,192

Sunoco, Inc. (Ñ)

    9,000      226

Walter Energy, Inc. Class A (Ñ)

    8,400      545

Whiting Petroleum Corp. (Æ)

    11,300      752

Williams Cos., Inc. (The)

    20,400      425
         
        19,233
         
Financial Services - 25.9%        

Allstate Corp. (The)

    20,600      617

Ameriprise Financial, Inc.

    22,300      853

Arch Capital Group, Ltd. (Æ)(Ñ)

    3,600      257

Bank of America Corp.

    231,429      3,513

Bank of New York Mellon Corp. (The)

    68,300      1,987

Boston Properties, Inc. (ö)(Ñ)

    9,000      584

Capital One Financial Corp.

    19,000      700

Citigroup, Inc. (Æ)(Ñ)

    590,936      1,962

Comerica, Inc. (Ñ)

    10,400      359

Discover Financial Services

    21,200      290

Federated Investors, Inc. Class B (Ñ)

    12,800      325

Fifth Third Bancorp

    17,900      223

Franklin Resources, Inc.

    4,740      469

Genworth Financial, Inc. Class A (Æ)

    102,568      1,419

Goldman Sachs Group, Inc. (The)

    8,540      1,270

Hartford Financial Services Group, Inc.

    38,200      916

Hudson City Bancorp, Inc.

    31,500      418

Huntington Bancshares, Inc. (Ñ)

    267,300      1,280

JPMorgan Chase & Co.

    80,320      3,128

KeyCorp

    92,600      665

Loews Corp.

    5,700      204

Marsh & McLennan Cos., Inc.

    28,600      617

Marshall & Ilsley Corp.

    189,200      1,307

Mastercard, Inc. Class A

    1,940      485

Mercury General Corp. (Ñ)

    13,400      512

Morgan Stanley

    58,930      1,578

New York Community Bancorp, Inc. (Ñ)

    24,200      364

Northern Trust Corp. (Ñ)

    19,200      970

People’s United Financial, Inc.

    22,100      357

Plum Creek Timber Co., Inc. (ö)(Ñ)

    12,900      467

PNC Financial Services Group, Inc.

    19,700      1,092

Prudential Financial, Inc.

    12,450      622

Regions Financial Corp. (Ñ)

    185,400      1,177

Simon Property Group, Inc. (ö)(Ñ)

    8,441      608

State Street Corp.

    25,340      1,087

SunTrust Banks, Inc.

    70,700      1,720

US Bancorp

    41,450      1,040

Valley National Bancorp

    31,400      432

Wells Fargo & Co.

    49,700      1,413

Wilmington Trust Corp. (Ñ)

    17,100      224

XL Capital, Ltd. Class A (Ñ)

    20,400      342

 

Russell U.S. Value Fund   21

Table of Contents

Russell Investment Company

Russell U.S. Value Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Zions Bancorporation

    20,300      385
         
        38,238
         
Health Care - 8.5%        

Abbott Laboratories

    15,500      820

Aetna, Inc.

    8,600      258

Amgen, Inc. (Æ)

    36,450      2,132

Baxter International, Inc.

    11,510      663

Becton Dickinson and Co.

    8,750      659

Biogen Idec, Inc. (Æ)

    13,825      743

Cardinal Health, Inc.

    10,000      331

Johnson & Johnson

    26,270      1,651

Life Technologies Corp. (Æ)

    9,200      457

Medtronic, Inc.

    11,800      506

Merck & Co., Inc.

    11,800      450

Pfizer, Inc.

    71,100      1,327

Shire PLC - ADR

    14,280      851

Teleflex, Inc.

    6,600      377

Thermo Fisher Scientific, Inc. (Æ)

    12,300      568

UnitedHealth Group, Inc.

    14,900      492

WellPoint, Inc. (Æ)

    4,500      287
         
        12,572
         
Materials and Processing - 4.3%        

Allegheny Technologies, Inc. (Ñ)

    7,400      302

Celanese Corp. Class A

    13,800      402

Cliffs Natural Resources, Inc. (Ñ)

    8,100      324

Dow Chemical Co. (The)

    20,500      555

Freeport-McMoRan Copper & Gold, Inc. Class B

    10,230      682

Owens Corning (Æ)

    13,400      345

Praxair, Inc.

    10,930      823

Precision Castparts Corp.

    10,980      1,156

Sealed Air Corp.

    22,000      437

Teck Resources, Ltd. Class B (Æ)

    19,240      631

Vulcan Materials Co.

    15,000      663
         
        6,320
         
Producer Durables - 12.1%        

3M Co.

    2,400      193

Accenture PLC Class A

    13,470      552

Agilent Technologies, Inc. (Æ)

    20,710      580

Automatic Data Processing, Inc.

    13,800      563

Boeing Co. (The)

    6,000      364

Caterpillar, Inc.

    5,800      303

Cooper Industries PLC

    17,000      729

Cummins, Inc.

    7,800      352

Emerson Electric Co.

    8,400      349

Fluor Corp. (Ñ)

    8,200      372

General Dynamics Corp.

    21,970      1,469

General Electric Co.

    63,100      1,015

Honeywell International, Inc.

    15,500      599

Ingersoll-Rand PLC (Ñ)

    15,900      516

ITT Corp.

    10,800      522

Lockheed Martin Corp.

    16,730      1,247

Navistar International Corp. (Æ)(Ñ)

    35,600      1,317
     Principal
Amount ($)
or Shares		      Market
Value
$

Norfolk Southern Corp.

    12,900      607

Northrop Grumman Corp.

    12,300      696

Parker Hannifin Corp.

    5,500      307

Pitney Bowes, Inc. (Ñ)

    24,700      517

Raytheon Co.

    15,920      835

Rockwell Automation, Inc. (Ñ)

    7,300      352

SPX Corp. (Ñ)

    7,300      397

Textron, Inc. (Ñ)

    27,300      533

Tidewater, Inc. (Ñ)

    10,800      506

United Parcel Service, Inc. Class B

    11,400      659

Waste Management, Inc. (Ñ)

    18,800      603

Xerox Corp. (Ñ)

    92,600      807
         
        17,861
         
Technology - 10.5%        

Advanced Micro Devices, Inc. (Æ)(Ñ)

    46,600      348

Alcatel-Lucent - ADR (Æ)(Ñ)

    158,000      526

CA, Inc.

    36,780      811

Cisco Systems, Inc. (Æ)

    60,550      1,361

Computer Sciences Corp. (Æ)

    12,840      659

Dell, Inc. (Æ)

    30,100      388

Diebold, Inc.

    11,200      298

EMC Corp. (Æ)

    29,580      493

Google, Inc. Class A (Æ)

    1,840      974

Harris Corp.

    7,700      330

Hewlett-Packard Co.

    25,790      1,214

International Business Machines Corp.

    11,920      1,459

KLA-Tencor Corp. (Ñ)

    8,500      240

LSI Corp. (Æ)

    29,500      147

Micron Technology, Inc. (Æ)

    73,900      644

Microsoft Corp.

    38,020      1,071

Motorola, Inc. (Æ)

    119,500      735

National Semiconductor Corp. (Ñ)

    38,900      516

Nokia OYJ - ADR (Ñ)

    29,300      401

Oracle Corp.

    53,670      1,238

QUALCOMM, Inc.

    9,530      373

Seagate Technology

    33,900      567

Symantec Corp. (Æ)

    24,040      407

Tyco Electronics, Ltd.

    12,500      311
         
        15,511
         
Utilities - 6.9%        

AES Corp. (The) (Æ)

    31,200      394

Allegheny Energy, Inc.

    31,100      652

Alliant Energy Corp.

    12,800      399

American Electric Power Co., Inc.

    26,200      908

American Water Works Co., Inc.

    22,700      495

AT&T, Inc.

    51,040      1,294

Dynegy, Inc. Class A (Æ)

    2,043      3

Exelon Corp.

    7,100      324

Frontier Communications Corp. (Ñ)

    46,500      354

Great Plains Energy, Inc. (Ñ)

    19,800      354

MDU Resources Group, Inc.

    14,400      317

Mirant Corp. (Æ)

    59,782      841

Pepco Holdings, Inc.

    21,200      348

PPL Corp.

    6,900      204

 

22   Russell U.S. Value Fund

Table of Contents

Russell Investment Company

Russell U.S. Value Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$		  
       

Progress Energy, Inc. - CVO

    1,300      —   

Qwest Communications International, Inc. (Ñ)

    114,400      482   

RRI Energy, Inc. (Æ)

    281,700      1,394   

Sprint Nextel Corp. (Æ)

    216,600      711   

Veolia Environnement - ADR

    10,400      341   

Verizon Communications, Inc.

    11,400      335   
           
        10,150   
           

Total Common Stocks

(cost $129,640)

         142,909   
           
Short-Term Investments - 2.9%        

Russell U.S. Cash Management Fund (£)

    4,214,975      4,215   
           

Total Short-Term Investments

(cost $4,215)

         4,215   
           
Other Securities - 15.3%        

Russell U.S. Cash Collateral Fund (×)

    13,322,760      13,323   

State Street Securities Lending Quality Trust (×)

    9,399,484      9,370   
           

Total Other Securities

(cost $22,722)

         22,693   
           

Total Investments - 114.9%

(identified cost $156,577)

         169,817   
Other Assets and Liabilities, Net - (14.9%)         (22,081 ) 
           
Net Assets - 100.0%         147,736   
           

 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell U.S. Value Fund   23

Table of Contents

Russell Investment Company

Russell U.S. Value Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
Long Positions                    

S & P 500 Index (CME)

    6      USD   1,605      03/10      (31)

S & P 500 E-Mini Index (CME)

    57      USD   3,051      03/10      (154)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

           (185)
                     

 

 

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
                 

Common Stocks

                  

Consumer Discretionary

      $ 15,986       $ —      $ —      $ 15,986   

Consumer Staples

        7,038         —        —        7,038   

Energy

        19,233         —        —        19,233   

Financial Services

        38,238         —        —        38,238   

Health Care

        12,572         —        —        12,572   

Materials and Processing

        6,320         —        —        6,320   

Producer Durables

        17,861         —        —        17,861   

Technology

        15,511         —        —        15,511   

Utilities

        10,150         —        —        10,150   

Short-Term Investments

        —         4,215        —        4,215   

Other Securities

        —         22,693        —        22,693   
                                     

Total Investments

        142,909         26,908        —        169,817   
                                     

Other Financial Instruments

                  

Futures Contracts

        (185 )       —        —        (185 ) 
                                     

Total Other Financial Instruments*

        (185 )       —        —        (185 ) 
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

24   Russell U.S. Value Fund

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 96.6%        
Consumer Discretionary - 15.9%        

99 Cents Only Stores (Æ)(Ñ)

    158,300      2,064

Abercrombie & Fitch Co. Class A (Ñ)

    34,600      1,091

Aeropostale, Inc. (Æ)

    95,570      3,143

America’s Car-Mart, Inc. (Æ)(Ñ)

    66,500      1,565

American Greetings Corp. Class A

    141,100      2,608

Asbury Automotive Group, Inc. (Æ)

    161,887      1,792

Bally Technologies, Inc. (Æ)(Ñ)

    48,884      1,939

Bebe Stores, Inc.

    349,300      2,159

BJ’s Restaurants, Inc. (Æ)(Ñ)

    72,379      1,530

BJ’s Wholesale Club, Inc. (Æ)(Ñ)

    50,183      1,696

Blyth, Inc. (Ñ)

    7,600      213

Bob Evans Farms, Inc.

    29,200      815

Bridgepoint Education, Inc. (Æ)(Ñ)

    130,139      1,896

Brown Shoe Co., Inc.

    30,000      367

Brunswick Corp. (Ñ)

    58,800      631

Buckle, Inc. (The) (Ñ)

    65,500      1,987

Build-A-Bear Workshop, Inc.
Class A (Æ)(Ñ)

    24,800      118

Burger King Holdings, Inc. (Ñ)

    90,600      1,580

Cabela’s, Inc. (Æ)(Ñ)

    29,400      474

Carter’s, Inc. (Æ)(Ñ)

    66,014      1,707

Central European Distribution Corp. (Æ)(Ñ)

    60,434      1,937

Chico’s FAS, Inc. (Æ)(Ñ)

    280,600      3,583

Chipotle Mexican Grill, Inc. Class A (Æ)

    38,393      3,703

Christopher & Banks Corp. (Ñ)

    324,472      2,158

Churchill Downs, Inc.

    42,891      1,557

Cinemark Holdings, Inc.

    39,100      554

CKE Restaurants, Inc.

    197,800      1,654

Columbia Sportswear Co. (Ñ)

    67,619      2,798

Core-Mark Holding Co., Inc. (Æ)

    24,000      716

Corinthian Colleges, Inc. (Æ)(Ñ)

    50,200      703

Cracker Barrel Old Country Store, Inc.

    8,700      322

CSS Industries, Inc. (Ñ)

    2,183      38

Darden Restaurants, Inc.

    62,000      2,292

DG FastChannel, Inc. (Æ)

    119,179      3,248

Dick’s Sporting Goods, Inc. (Æ)(Ñ)

    155,129      3,470

Dillard’s, Inc. Class A (Ñ)

    327,369      5,421

Dollar Tree, Inc. (Æ)

    83,000      4,110

Domino’s Pizza, Inc. (Æ)(Ñ)

    29,016      328

Elizabeth Arden, Inc. (Æ)

    10,634      165

Exide Technologies (Æ)

    37,000      286

Fastenal Co. (Ñ)

    85,902      3,563

Finish Line, Inc. (The) Class A

    476,350      5,283

Foot Locker, Inc.

    265,398      2,996

Fossil, Inc. (Æ)(Ñ)

    57,400      1,874

Fred’s, Inc. Class A

    189,900      1,905

Gentex Corp.

    77,137      1,479

Grand Canyon Education, Inc. (Æ)(Ñ)

    68,371      1,365

Group 1 Automotive, Inc. (Æ)(Ñ)

    69,900      2,027

Guess?, Inc.

    120,411      4,782

Gymboree Corp. (Æ)(Ñ)

    55,600      2,169

Harman International Industries, Inc.

    22,800      811

Hasbro, Inc.

    57,000      1,741

Haverty Furniture Cos., Inc. (Ñ)

    3,300      41

hhgregg, Inc. (Æ)(Ñ)

    203,709      4,339
     Principal
Amount ($)
or Shares		      Market
Value
$

Hillenbrand, Inc.

    97,600      1,791

Hooker Furniture Corp.

    200      3

HSN, Inc. (Æ)

    31,400      601

IAC/InterActiveCorp (Æ)(Ñ)

    95,271      1,913

Insight Enterprises, Inc. (Æ)

    31,500      363

Inter Parfums, Inc. (Ñ)

    5,198      69

Jack in the Box, Inc. (Æ)(Ñ)

    83,500      1,629

Jarden Corp.

    33,700      1,027

Jo-Ann Stores, Inc. (Æ)

    32,400      1,135

John Wiley & Sons, Inc. Class A (Ñ)

    36,000      1,503

Jones Apparel Group, Inc.

    176,200      2,544

JOS A Bank Clothiers, Inc. (Æ)(Ñ)

    58,530      2,453

KB Home

    143,400      2,191

Kenneth Cole Productions, Inc. Class A (Æ)

    213,436      2,186

La-Z-Boy, Inc. Class Z (Æ)

    12,600      128

Leapfrog Enterprises, Inc. Class A (Æ)(Ñ)

    15,135      50

Lithia Motors, Inc. Class A (Æ)

    235,700      1,838

Live Nation Entertainment, Inc. (Æ)

    233,540      2,679

Liz Claiborne, Inc. (Æ)(Ñ)

    330,350      1,609

LKQ Corp. (Æ)

    172,121      3,227

Lululemon Athletica, Inc. Class W (Æ)(Ñ)

    93,903      2,652

Meredith Corp.

    90,600      2,807

ModusLink Global Solutions, Inc. (Æ)

    4,300      44

Movado Group, Inc. (Æ)(Ñ)

    133,172      1,456

MSC Industrial Direct Co. Class A

    46,403      2,004

NetFlix, Inc. (Æ)

    20,885      1,300

New York & Co., Inc. (Æ)

    26,800      96

Nu Skin Enterprises, Inc. Class A (Ñ)

    97,300      2,261

O’Charleys, Inc. (Æ)(Ñ)

    27,500      204

OfficeMax, Inc. (Æ)

    113,194      1,468

Orient-Express Hotels, Ltd. Class A (Æ)(Ñ)

    163,581      1,597

Oxford Industries, Inc. (Ñ)

    7,300      130

Pacific Sunwear of California, Inc. (Æ)(Ñ)

    384,500      1,353

Papa John’s International, Inc. (Æ)

    22,700      536

PC Connection, Inc. (Æ)

    16,900      108

PEP Boys-Manny Moe & Jack (Ñ)

    30,600      256

Perry Ellis International, Inc. (Æ)

    51,451      825

PF Chang’s China Bistro, Inc. (Æ)(Ñ)

    40,230      1,553

Phillips-Van Heusen Corp.

    93,300      3,666

Pricesmart, Inc.

    54,100      1,083

RadioShack Corp.

    93,000      1,815

RC2 Corp. (Æ)

    15,800      227

Regal Entertainment Group Class A

    105,300      1,555

Rent-A-Center, Inc. Class A (Æ)

    306,400      6,128

Revlon, Inc. (Æ)(Ñ)

    27,800      428

Ross Stores, Inc.

    68,744      3,157

Scholastic Corp.

    35,400      1,058

Service Corp. International

    138,500      1,062

Shoe Carnival, Inc. (Æ)(Ñ)

    9,200      168

Sinclair Broadcast Group, Inc.
Class A (Æ)(Ñ)

    143,900      727

Skechers U.S.A., Inc. Class A (Æ)

    47,900      1,344

Sotheby’s Class A (Ñ)

    180,315      4,191

Stage Stores, Inc.

    201,700      2,606

Standard Motor Products, Inc. (Æ)(Ñ)

    17,500      137

Stanley Works (The)

    23,700      1,215

Steven Madden, Ltd. (Æ)

    131,464      5,277

 

Russell U.S. Small & Mid Cap Fund   25

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Stewart Enterprises, Inc. Class A

    581,500      2,948

Strayer Education, Inc. (Ñ)

    17,130      3,559

Superior Industries International, Inc. (Ñ)

    134,090      1,972

Tech Data Corp. (Æ)

    77,100      3,142

Tempur-Pedic International, Inc. (Æ)(Ñ)

    80,877      2,013

Thor Industries, Inc.

    73,415      2,331

Timberland Co. Class A (Æ)(Ñ)

    40,800      702

TRW Automotive Holdings Corp. (Æ)(Ñ)

    11,000      253

United Stationers, Inc. (Æ)

    15,670      855

Urban Outfitters, Inc. (Æ)(Ñ)

    138,350      4,368

Valassis Communications, Inc. (Æ)(Ñ)

    43,200      904

VF Corp.

    28,000      2,017

VistaPrint NV (Æ)

    23,765      1,331

Warnaco Group, Inc. (The) (Æ)(Ñ)

    62,070      2,403

Washington Post Co. (The) Class B

    5,605      2,436

Wendy’s/Arby’s Group, Inc.

    732,600      3,377

WESCO International, Inc. (Æ)(Ñ)

    83,500      2,315

Whirlpool Corp. (Ñ)

    25,000      1,879

Williams-Sonoma, Inc. (Ñ)

    53,075      1,007
         
        228,038
         
Consumer Staples - 2.2%        

Alliance One International, Inc. (Æ)(Ñ)

    156,195      795

Andersons, Inc. (The)

    154,427      4,166

Cal-Maine Foods, Inc. (Ñ)

    32,986      1,077

Casey’s General Stores, Inc. (Ñ)

    28,600      877

Chiquita Brands International, Inc. (Æ)(Ñ)

    56,900      835

Del Monte Foods Co.

    422,700      4,810

Energizer Holdings, Inc. (Æ)

    9,900      550

Fresh Del Monte Produce, Inc. (Æ)

    121,100      2,462

Green Mountain Coffee Roasters, Inc. (Æ)

    16,685      1,415

Herbalife, Ltd.

    57,100      2,218

Lancaster Colony Corp. (Ñ)

    29,300      1,598

Nash Finch Co. (Ñ)

    19,700      680

Pantry, Inc. (The) (Æ)(Ñ)

    26,700      360

Ralcorp Holdings, Inc. (Æ)

    49,263      3,045

Ruddick Corp.

    66,559      1,887

Spartan Stores, Inc.

    22,500      305

SUPERVALU, Inc.

    30,800      453

TreeHouse Foods, Inc. (Æ)(Ñ)

    79,400      3,076

Tyson Foods, Inc. Class A

    35,900      496
         
        31,105
         
Energy - 6.3%        

Alpha Natural Resources, Inc. (Æ)

    104,164      4,230

Arena Resources, Inc. (Æ)(Ñ)

    34,347      1,317

Berry Petroleum Co. Class A (Ñ)

    93,400      2,529

Bill Barrett Corp. (Æ)(Ñ)

    49,473      1,534

BJ Services Co.

    123,678      2,556

Boardwalk Pipeline Partners, LP (Ñ)

    65,488      1,931

Bolt Technology Corp. (Æ)(Ñ)

    107,331      1,073

Cal Dive International, Inc. (Æ)

    500      4

Carrizo Oil & Gas, Inc. (Æ)(Ñ)

    127,591      3,062

Cie Generale de Geophysique-Veritas - ADR (Æ)

    81,142      1,977

Comstock Resources, Inc. (Æ)

    58,284      2,273

Continental Resources, Inc. (Æ)(Ñ)

    35,092      1,332
     Principal
Amount ($)
or Shares		      Market
Value
$

Core Laboratories NV

    25,607      2,995

Dawson Geophysical Co. (Æ)(Ñ)

    8,403      182

Delek US Holdings, Inc. (Ñ)

    24,800      173

El Paso Pipeline Partners, LP

    103,500      2,493

Enbridge Energy Partners, LP Class A

    44,770      2,325

Enterprise Products Partners, LP

    64,480      1,978

EXCO Resources, Inc.

    72,600      1,273

Exterran Holdings, Inc. (Æ)

    89,063      1,806

Frontier Oil Corp.

    280,800      3,499

Geokinetics, Inc. (Æ)(Ñ)

    2,400      24

Goodrich Petroleum Corp. (Æ)(Ñ)

    94,388      1,966

Gulf Island Fabrication, Inc.

    16,500      288

Matrix Service Co. (Æ)

    22,989      232

Newfield Exploration Co. (Æ)

    35,000      1,713

Noble Corp.

    49,750      2,006

Oceaneering International, Inc. (Æ)

    66,900      3,659

Oil States International, Inc. (Æ)

    36,100      1,330

Patterson-UTI Energy, Inc. (Ñ)

    157,058      2,412

Penn Virginia Corp.

    58,315      1,415

Petroleum Development Corp. (Æ)

    123,404      2,587

Petroquest Energy, Inc. (Æ)(Ñ)

    230,792      1,256

Precision Drilling Trust (Æ)

    268,947      2,090

Rosetta Resources, Inc. (Æ)(Ñ)

    191,171      3,931

Rowan Cos., Inc. (Æ)(Ñ)

    155,473      3,340

RPC, Inc.

    247,153      3,052

St. Mary Land & Exploration Co.

    36,650      1,174

Sunoco, Inc.

    89,693      2,250

Superior Energy Services, Inc. (Æ)

    134,529      3,090

T-3 Energy Services, Inc. Class 3 (Æ)

    4,700      106

Tesoro Corp. (Ñ)

    86,700      1,084

Tetra Technologies, Inc. (Æ)

    162,803      1,703

Union Drilling, Inc. (Æ)

    3,600      26

Unit Corp. (Æ)(Ñ)

    81,614      3,717

W&T Offshore, Inc.

    73,500      655

Western Refining, Inc. (Æ)(Ñ)

    113,300      518

Whiting Petroleum Corp. (Æ)

    31,177      2,075

XTO Energy, Inc.

    44,861      1,999
         
        90,240
         
Financial Services - 17.1%        

Advance America Cash Advance Centers, Inc.

    278,400      1,345

Affiliated Managers Group, Inc. (Æ)(Ñ)

    150,871      9,138

Agree Realty Corp. (ö)

    1,000      20

Alliance Data Systems Corp. (Æ)(Ñ)

    53,727      3,195

Allied World Assurance Co. Holdings, Ltd.

    36,500      1,634

American Capital Agency Corp. (ö)(Ñ)

    48,400      1,292

American Equity Investment Life Holding Co. (Ñ)

    238,900      1,753

American Financial Group, Inc.

    69,000      1,712

Ameriprise Financial, Inc.

    77,380      2,959

Annaly Capital Management, Inc. (ö)

    136,212      2,367

Anworth Mortgage Asset Corp. (ö)(Ñ)

    452,300      3,121

Arch Capital Group, Ltd. (Æ)

    44,442      3,179

Ares Capital Corp. (Ñ)

    466,516      5,738

Argo Group International Holdings,
Ltd. (Æ)

    23,200      620

 

26   Russell U.S. Small & Mid Cap Fund

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Artio Global Investors, Inc. (Æ)

    108,273      2,655

Aspen Insurance Holdings, Ltd.

    69,700      1,856

Assurant, Inc.

    9,281      292

Avatar Holdings, Inc. (Æ)

    88,516      1,499

Axis Capital Holdings, Ltd.

    61,500      1,771

Bancfirst Corp.

    2,600      105

Banco Latinoamericano de Comercio Exterior SA Class E

    37,400      530

Berkshire Hills Bancorp, Inc.

    7,300      121

BioMed Realty Trust, Inc. (ö)(Ñ)

    37,400      545

BOK Financial Corp. (Ñ)

    100,700      4,774

Boston Private Financial Holdings, Inc. (Ñ)

    439,556      3,152

Boston Properties, Inc. (ö)

    27,300      1,771

Brandywine Realty Trust (ö)

    85,700      962

BRE Properties, Inc. Class A (ö)

    8,200      266

Brookline Bancorp, Inc.

    127,327      1,275

Calamos Asset Management, Inc.
Class A (Ñ)

    88,100      1,141

Camden Property Trust (ö)

    25,709      997

CapLease, Inc. (ö)(Ñ)

    20,200      93

Capstead Mortgage Corp. (ö)(Ñ)

    292,300      3,882

Cardinal Financial Corp.

    7,000      65

Chimera Investment Corp. (ö)

    322,000      1,262

Citizens Republic Bancorp, Inc. (Æ)

    162,200      123

CNA Surety Corp. (Æ)

    116,720      1,634

Colonial Properties Trust (ö)

    72,200      795

Community Trust Bancorp, Inc. (Ñ)

    8,000      203

CVB Financial Corp.

    147,022      1,408

Cybersource Corp. (Æ)

    236,545      4,277

Delphi Financial Group, Inc. Class A

    76,700      1,553

Developers Diversified Realty Corp. (ö)

    69,200      571

DiamondRock Hospitality Co. (ö)(Ñ)

    429,228      3,494

Dime Community Bancshares

    86,900      1,051

Douglas Emmett, Inc. (ö)

    57,201      791

Duff & Phelps Corp. Class A

    224,435      3,645

DuPont Fabros Technology, Inc. (ö)

    78,311      1,301

Education Realty Trust, Inc. (ö)

    54,500      288

Endurance Specialty Holdings, Ltd. (Ñ)

    43,200      1,556

Equifax, Inc.

    60,963      1,951

Euronet Worldwide, Inc. (Æ)(Ñ)

    84,268      1,721

Evercore Partners, Inc. Class A (Ñ)

    9,300      278

Extra Space Storage, Inc. (ö)

    28,100      319

EZCORP, Inc. Class A (Æ)

    29,100      528

Factset Research Systems, Inc. (Ñ)

    59,202      3,730

FBL Financial Group, Inc. Class A (Ñ)

    7,400      133

Fidelity National Financial, Inc. Class A

    87,898      1,134

Fidelity National Information Services, Inc.

    100,500      2,368

First Cash Financial Services, Inc. (Æ)

    59,900      1,367

First Community Bancshares, Inc. (Ñ)

    12,483      146

First Financial Bancorp

    83,500      1,369

First Horizon National Corp. (Æ)

    92,300      1,195

First Mercury Financial Corp.

    7,700      101

First Niagara Financial Group, Inc. (Ñ)

    335,000      4,600

First Potomac Realty Trust (ö)

    25,900      352

Flushing Financial Corp.

    13,100      160

Franklin Street Properties Corp. (ö)

    242,462      3,045

Glimcher Realty Trust (ö)(Ñ)

    14,500      47
     Principal
Amount ($)
or Shares		      Market
Value
$

Global Payments, Inc.

    76,133      3,388

Hancock Holding Co.

    66,709      2,731

Hercules Technology Growth Capital, Inc.

    22,000      221

Home Bancshares, Inc. (Ñ)

    12,800      315

Horace Mann Educators Corp.

    169,100      2,027

Hospitality Properties Trust (ö)(Ñ)

    128,600      2,845

HRPT Properties Trust (ö)

    233,313      1,556

Iberiabank Corp. (Ñ)

    101,348      5,416

Independent Bank Corp.

    54,700      1,274

Infinity Property & Casualty Corp.

    5,600      222

IntercontinentalExchange, Inc. (Æ)

    27,146      2,592

Investment Technology Group, Inc. (Æ)

    7,700      158

Kite Realty Group Trust (ö)

    31,102      118

Knight Capital Group, Inc. Class A (Æ)(Ñ)

    288,017      4,505

Lakeland Financial Corp.

    4,100      76

LaSalle Hotel Properties (ö)(Ñ)

    139,605      2,813

Lazard, Ltd. Class A

    110,050      4,241

Lexington Realty Trust (ö)(Ñ)

    11,018      66

Mack-Cali Realty Corp. (ö)

    44,500      1,452

MarketAxess Holdings, Inc.

    178,950      2,439

MCG Capital Corp. (Æ)

    284,000      1,304

Meadowbrook Insurance Group, Inc.

    44,000      297

MFA Financial, Inc. (ö)(Ñ)

    338,600      2,492

Montpelier Re Holdings, Ltd. (Ñ)

    41,800      706

MSCI, Inc. Class A (Æ)

    87,611      2,590

MVC Capital, Inc. (Ñ)

    5,836      68

Nara Bancorp, Inc. (Æ)

    20,400      186

NBT Bancorp, Inc.

    20,200      421

Nelnet, Inc. Class A

    132,900      2,218

NewAlliance Bancshares, Inc.

    222,700      2,592

OceanFirst Financial Corp.

    10,500      109

Old National Bancorp

    323,800      3,899

Old Republic International Corp. (Ñ)

    155,300      1,645

Omega Healthcare Investors, Inc. (ö)

    78,000      1,459

OneBeacon Insurance Group, Ltd. Class A

    18,444      239

Oriental Financial Group, Inc. (Ñ)

    159,435      1,814

Park National Corp.

    3,000      164

Parkway Properties, Inc. (ö)

    29,700      619

PartnerRe, Ltd. - ADR

    31,300      2,335

PennantPark Investment Corp.

    381,040      3,448

Phoenix Cos., Inc. (The) (Æ)(Ñ)

    87,700      206

Pinnacle Financial Partners, Inc. (Æ)(Ñ)

    183,480      2,774

Piper Jaffray Cos. (Æ)(Ñ)

    60,108      2,920

Platinum Underwriters Holdings, Ltd. (Ñ)

    81,215      2,945

PrivateBancorp, Inc. Class A

    162,530      2,210

Prosperity Bancshares, Inc.

    27,827      1,122

Protective Life Corp.

    69,800      1,176

Provident Financial Services, Inc. (Ñ)

    39,400      449

Provident New York Bancorp (Ñ)

    3,900      32

Ramco-Gershenson Properties Trust (ö)

    251,700      2,396

Raymond James Financial, Inc. (Ñ)

    124,655      3,155

Renasant Corp. (Ñ)

    13,100      188

Resource Capital Corp. (ö)(Ñ)

    25,500      135

Sandy Spring Bancorp, Inc. (Ñ)

    1,800      22

SCBT Financial Corp. (Ñ)

    2,800      84

Selective Insurance Group

    109,077      1,687

Senior Housing Properties Trust (ö)

    107,517      2,242

 

Russell U.S. Small & Mid Cap Fund   27

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Signature Bank NY (Æ)

    62,500      2,161

Simmons First National Corp. Class A

    3,300      89

Southside Bancshares, Inc.

    4,975      99

Southwest Bancorp, Inc.

    4,100      31

Sovran Self Storage, Inc. (ö)

    57,841      1,961

StanCorp Financial Group, Inc. (Ñ)

    38,300      1,646

StellarOne Corp. (Ñ)

    234,759      2,456

Sterling Bancorp Class N

    16,600      124

Sterling Bancshares, Inc. (Ñ)

    431,103      2,203

Sun Bancorp, Inc. (Æ)(Ñ)

    15,765      60

SVB Financial Group (Æ)(Ñ)

    36,600      1,588

SWS Group, Inc.

    20,000      240

Texas Capital Bancshares, Inc. (Æ)

    131,754      2,220

TICC Capital Corp. (Ñ)

    10,000      59

Transatlantic Holdings, Inc.

    20,100      999

Trustmark Corp.

    126,800      2,891

U-Store-It Trust (ö)

    60,800      421

Union/First Market Bankshares Corp. (Æ)

    4,664      60

United America Indemnity, Ltd.
Class A (Æ)

    31,561      224

United Financial Bancorp, Inc.

    9,100      120

United Fire & Casualty Co.

    107,650      1,811

Unitrin, Inc.

    4,218      91

Unum Group

    94,500      1,849

Valley National Bancorp

    203,900      2,804

Waddell & Reed Financial, Inc. Class A

    69,915      2,190

Washington Federal, Inc.

    61,300      1,143

Webster Financial Corp. (Ñ)

    46,500      719

WesBanco, Inc. (Ñ)

    19,600      284

Wesco Financial Corp.

    5,725      2,021

Whitney Holding Corp. (Ñ)

    213,729      2,654

Willis Group Holdings PLC (Æ)

    54,300      1,424

Wilshire Bancorp, Inc. (Ñ)

    5,401      50

Wintrust Financial Corp. (Ñ)

    18,500      643

WSFS Financial Corp.

    3,192      86

Zenith National Insurance Corp.

    87,400      2,438
         
        244,983
         
Health Care - 11.0%        

Affymetrix, Inc. (Æ)

    26,400      139

Albany Molecular Research, Inc. (Æ)

    210,707      2,000

Alexion Pharmaceuticals, Inc. (Æ)

    82,691      3,834

Amedisys, Inc. (Æ)(Ñ)

    173,631      9,541

Analogic Corp.

    139,119      5,565

athenahealth, Inc. (Æ)

    149,617      5,886

Brookdale Senior Living, Inc. (Æ)

    112,259      2,049

Catalyst Health Solutions, Inc. (Æ)(Ñ)

    27,960      1,100

Centene Corp. (Æ)

    144,000      2,772

Cephalon, Inc. (Æ)

    35,500      2,266

Cerner Corp. (Æ)

    28,800      2,179

Cigna Corp.

    38,075      1,286

Coventry Health Care, Inc. (Æ)

    20,100      460

Cutera, Inc. (Æ)

    3,900      34

Cynosure, Inc. Class A (Æ)

    173,944      1,764

Dendreon Corp. (Æ)(Ñ)

    39,955      1,107

Dentsply International, Inc.

    61,010      2,046
     Principal
Amount ($)
or Shares		      Market
Value
$

Emergency Medical Services Corp.
Class A (Æ)

    21,400      1,124

Endo Pharmaceuticals Holdings, Inc. (Æ)

    136,200      2,739

Genoptix, Inc. (Æ)(Ñ)

    56,047      1,825

Gentiva Health Services, Inc. (Æ)(Ñ)

    78,693      2,010

Harvard Bioscience, Inc. (Æ)(Ñ)

    445,572      1,537

Health Net, Inc. (Æ)

    85,200      2,067

Healthsouth Corp. (Æ)(Ñ)

    99,511      1,792

Healthspring, Inc. (Æ)

    288,342      5,014

Henry Schein, Inc. (Æ)(Ñ)

    37,516      2,028

Hill-Rom Holdings, Inc.

    15,200      355

HMS Holdings Corp. (Æ)

    113,202      5,104

Humana, Inc. (Æ)

    58,100      2,825

Icon PLC - ADR (Æ)

    170,557      4,237

Idexx Laboratories, Inc. (Æ)

    52,393      2,750

Illumina, Inc. (Æ)(Ñ)

    191,152      7,013

Invacare Corp.

    6,200      155

Inverness Medical Innovations, Inc. (Æ)

    83,472      3,370

Kindred Healthcare, Inc. (Æ)

    151,209      2,557

Kinetic Concepts, Inc. (Æ)(Ñ)

    39,800      1,643

King Pharmaceuticals, Inc. (Æ)

    152,607      1,833

Life Technologies Corp. (Æ)

    67,462      3,354

Magellan Health Services, Inc. (Æ)

    38,300      1,512

MedAssets, Inc. (Æ)

    72,200      1,461

Medicines Co. (The) (Æ)

    19,973      166

Mednax, Inc. (Æ)

    60,765      3,455

Meridian Bioscience, Inc.

    114,100      2,287

Molina Healthcare, Inc. (Æ)(Ñ)

    40,300      897

Mylan, Inc. (Æ)(Ñ)

    198,458      3,618

NuVasive, Inc. (Æ)(Ñ)

    85,296      2,354

Odyssey HealthCare, Inc. (Æ)

    39,700      583

Omnicare, Inc.

    94,150      2,354

OSI Systems, Inc. (Æ)(Ñ)

    112,897      2,988

Owens & Minor, Inc.

    4,900      196

Palomar Medical Technologies, Inc. (Æ)(Ñ)

    11,103      102

Par Pharmaceutical Cos., Inc. (Æ)

    250,002      6,580

Patterson Cos., Inc. (Æ)(Ñ)

    142,953      4,083

PerkinElmer, Inc.

    106,656      2,148

Quality Systems, Inc. (Ñ)

    29,494      1,520

RehabCare Group, Inc. (Æ)

    36,200      1,052

Salix Pharmaceuticals, Ltd. (Æ)(Ñ)

    48,645      1,423

STERIS Corp.

    45,090      1,176

Sun Healthcare Group, Inc. (Æ)(Ñ)

    53,100      464

SXC Health Solutions Corp. (Æ)

    104,290      4,914

Symmetry Medical, Inc. (Æ)

    267,700      2,388

Techne Corp.

    40,734      2,673

Teleflex, Inc.

    9,100      520

Thoratec Corp. (Æ)(Ñ)

    46,924      1,330

TomoTherapy, Inc. (Æ)(Ñ)

    2,900      12

Universal American Corp. (Æ)

    45,900      613

Universal Health Services, Inc. Class B

    41,400      1,207

Watson Pharmaceuticals, Inc. Class B (Æ)

    121,200      4,650
         
        158,086
         
Materials and Processing - 8.1%        

A Schulman, Inc.

    110,600      2,491

Agrium, Inc.

    29,800      1,679

 

28   Russell U.S. Small & Mid Cap Fund

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Airgas, Inc.

    100,519      4,248

AK Steel Holding Corp.

    217,854      4,431

Albemarle Corp.

    121,075      4,325

Allegheny Technologies, Inc. (Ñ)

    83,753      3,421

Ashland, Inc.

    60,800      2,457

Belden, Inc.

    64,557      1,474

Brady Corp. Class A

    83,200      2,351

Brush Engineered Materials, Inc. (Æ)

    6,700      120

Bway Holding Co. (Æ)

    59,692      1,018

Cabot Corp.

    101,177      2,608

Clarcor, Inc.

    110,500      3,578

Clearwater Paper Corp. (Æ)

    19,000      930

Comfort Systems USA, Inc.

    80,200      941

Commercial Metals Co. (Ñ)

    179,200      2,462

Cytec Industries, Inc.

    90,082      3,361

Eagle Materials, Inc.

    69,500      1,585

Encore Wire Corp.

    14,030      281

Ferro Corp. (Ñ)

    35,900      279

FMC Corp.

    26,296      1,340

Fushi Copperweld, Inc. (Æ)(Ñ)

    120,936      1,115

Gammon Gold, Inc. (Æ)

    206,885      1,785

General Cable Corp. (Æ)(Ñ)

    26,900      783

Gerdau Ameristeel Corp. (Ñ)

    254,500      1,916

Gibraltar Industries, Inc. (Æ)(Ñ)

    36,200      505

Glatfelter

    10,100      139

Griffon Corp. (Æ)

    27,100      320

HB Fuller Co.

    48,100      963

Huntsman Corp.

    34,900      425

Innophos Holdings, Inc.

    16,600      325

Insteel Industries, Inc.

    122,723      1,213

International Flavors & Fragrances, Inc.

    21,200      843

Intrepid Potash, Inc. (Æ)(Ñ)

    75,720      1,854

Kaiser Aluminum Corp. (Ñ)

    8,400      295

Kaydon Corp.

    80,500      2,632

Koppers Holdings, Inc.

    29,500      824

LB Foster Co. Class A (Æ)

    3,900      105

Lubrizol Corp.

    50,635      3,731

Mueller Water Products, Inc. Class A

    275,300      1,242

Myers Industries, Inc. (Ñ)

    12,400      113

Olin Corp.

    130,800      2,158

OM Group, Inc. (Æ)(Ñ)

    121,481      3,963

Owens-Illinois, Inc. (Æ)

    54,300      1,478

Pactiv Corp. (Æ)

    37,600      848

PolyOne Corp. (Æ)

    76,500      570

Quaker Chemical Corp.

    10,200      178

Quanex Building Products Corp.

    80,900      1,301

Reliance Steel & Aluminum Co.

    139,500      5,683

Rock-Tenn Co. Class A

    48,000      2,049

RPM International, Inc.

    153,146      2,864

Schnitzer Steel Industries, Inc. Class A (Ñ)

    3,700      150

Schweitzer-Mauduit International, Inc. (Ñ)

    87,200      6,561

Simpson Manufacturing Co., Inc.

    77,900      1,921

Sims Metal Management, Ltd. - ADR

    144,486      2,716

Sonoco Products Co.

    53,600      1,488

Spartech Corp. (Æ)(Ñ)

    22,300      225

Steel Dynamics, Inc.

    230,133      3,493

Stillwater Mining Co. (Æ)

    208,204      2,093
     Principal
Amount ($)
or Shares		      Market
Value
$

Symyx Technologies, Inc. (Æ)

    10,100      50

Thompson Creek Metals Co., Inc. (Æ)

    168,128      1,950

Timken Co.

    56,600      1,268

Titanium Metals Corp. (Æ)

    157,343      1,830

Universal Forest Products, Inc.

    13,400      455

Valmont Industries, Inc. (Ñ)

    15,825      1,099

Watsco, Inc.

    28,679      1,376

Westlake Chemical Corp. (Ñ)

    14,700      302

Zoltek Cos., Inc. (Æ)(Ñ)

    147,406      1,231
         
        115,808
         
Producer Durables - 14.4%        

Actuant Corp. Class A (Ñ)

    121,150      2,032

Administaff, Inc.

    122,500      2,798

AGCO Corp. (Æ)(Ñ)

    206,271      6,376

Aircastle, Ltd. (Ñ)

    36,600      348

Alaska Air Group, Inc. (Æ)(Ñ)

    10,600      332

Alexander & Baldwin, Inc.

    64,174      2,050

American Railcar Industries, Inc.

    7,100      70

Ametek, Inc.

    29,800      1,086

AO Smith Corp. (Ñ)

    34,700      1,478

Applied Industrial Technologies, Inc.

    90,565      1,974

Arkansas Best Corp. (Ñ)

    135,800      3,061

Astec Industries, Inc. (Æ)(Ñ)

    79,732      1,985

Barnes Group, Inc.

    160,900      2,581

BE Aerospace, Inc. (Æ)

    154,434      3,464

Briggs & Stratton Corp.

    107,600      1,779

Brink’s Co. (The)

    94,400      2,207

Bristow Group, Inc. (Æ)(Ñ)

    115,548      4,125

Bucyrus International, Inc. Class A

    68,900      3,609

Carlisle Cos., Inc.

    15,500      520

CDI Corp.

    6,200      80

Celadon Group, Inc. (Æ)

    7,400      73

Ceradyne, Inc. (Æ)

    152,153      2,973

Chicago Bridge & Iron Co. NV (Æ)

    133,180      2,702

CIRCOR International, Inc.

    12,300      347

ClearOne Communications, Inc. (Æ)

    333      1

Columbus McKinnon Corp. (Æ)

    12,100      164

Con-way, Inc.

    72,500      2,075

Consolidated Graphics, Inc. (Æ)

    9,200      311

Convergys Corp. (Æ)

    93,105      996

Copart, Inc. (Æ)

    49,160      1,660

Corporate Executive Board Co. (The)

    154,900      3,584

Crane Co.

    8,800      269

Cross Country Healthcare, Inc. (Æ)(Ñ)

    14,400      130

Cubic Corp.

    45,600      1,781

Curtiss-Wright Corp.

    104,800      3,203

Dover Corp.

    26,000      1,115

DryShips, Inc. (Æ)(Ñ)

    386,319      2,125

Ducommun, Inc.

    93,221      1,676

DXP Enterprises, Inc. (Æ)(Ñ)

    10,500      137

Dycom Industries, Inc. (Æ)

    38,600      315

DynCorp International, Inc. Class A (Æ)

    11,700      141

Electro Rent Corp. (Ñ)

    143,341      1,676

Electronics for Imaging, Inc. (Æ)

    5,179      60

EMCOR Group, Inc. (Æ)

    53,900      1,297

EnerSys (Æ)(Ñ)

    164,183      3,200

 

Russell U.S. Small & Mid Cap Fund   29

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Ennis, Inc.

    107,503      1,613

Exlservice Holdings, Inc. (Æ)(Ñ)

    86,285      1,566

Federal Signal Corp.

    17,100      111

Flowserve Corp.

    17,100      1,542

Foster Wheeler AG (Æ)

    138,997      3,889

Franklin Electric Co., Inc.

    67,300      1,752

FTI Consulting, Inc. (Æ)

    48,133      1,995

G&K Services, Inc. Class A

    110,378      2,759

Genesee & Wyoming, Inc. Class A (Æ)(Ñ)

    63,886      1,883

Geo Group, Inc. (The) (Æ)

    164,429      3,042

Global Sources, Ltd. (Æ)(Ñ)

    5,119      32

Granite Construction, Inc.

    102,700      3,171

Greenbrier Cos., Inc. (Æ)(Ñ)

    5,323      43

H&E Equipment Services, Inc. (Æ)(Ñ)

    20,700      220

Hewitt Associates, Inc. Class A (Æ)

    94,200      3,719

Horizon Lines, Inc. Class A

    15,434      73

Hubbell, Inc. Class B

    39,200      1,688

IDEX Corp.

    141,233      3,986

Insituform Technologies, Inc.
Class A (Æ)(Ñ)

    125,532      2,571

Jacobs Engineering Group, Inc. (Æ)(Ñ)

    29,000      1,096

JB Hunt Transport Services, Inc.

    45,872      1,406

Joy Global, Inc.

    121,100      5,539

Kadant, Inc. (Æ)

    4,800      73

Kaman Corp. Class A

    68,512      1,705

KBR, Inc.

    188,300      3,527

Kennametal, Inc.

    101,074      2,474

Kforce, Inc. (Æ)(Ñ)

    20,167      270

Knight Transportation, Inc. (Ñ)

    185,534      3,358

Knightsbridge Tankers, Ltd.

    11,600      167

Landstar System, Inc.

    31,697      1,150

Layne Christensen Co. (Æ)

    88,394      2,239

Lexmark International, Inc. Class A (Æ)

    81,400      2,099

M&F Worldwide Corp. (Æ)

    9,900      359

Mattson Technology, Inc. (Æ)

    10,300      34

McDermott International, Inc. (Æ)

    122,632      2,897

Moog, Inc. Class A (Æ)

    10,600      320

NACCO Industries, Inc. Class A

    27,915      1,502

Nalco Holding Co.

    105,615      2,490

Navistar International Corp. (Æ)(Ñ)

    17,703      655

Nordson Corp.

    9,300      526

On Assignment, Inc. (Æ)

    13,400      94

Oshkosh Corp.

    89,900      3,243

PHI, Inc. (Æ)

    109,520      2,131

Powell Industries, Inc. (Æ)

    39,497      1,154

Robbins & Myers, Inc. (Ñ)

    114,936      2,554

Robert Half International, Inc. (Ñ)

    104,688      2,818

Roper Industries, Inc. (Ñ)

    94,511      4,733

RR Donnelley & Sons Co.

    168,300      3,336

Ryder System, Inc.

    41,600      1,514

Safe Bulkers, Inc.

    134,420      1,063

Saia, Inc. (Æ)(Ñ)

    14,399      173

Shaw Group, Inc. (The) (Æ)

    59,900      1,934

Skywest, Inc.

    48,600      711

Southwest Airlines Co.

    233,868      2,650

Spherion Corp. (Æ)

    25,500      144
     Principal
Amount ($)
or Shares		      Market
Value
$

Spirit Aerosystems Holdings, Inc.
Class A (Æ)(Ñ)

    59,769      1,282

SPX Corp.

    26,030      1,417

Standard Register Co. (The) (Ñ)

    3,545      19

StealthGas, Inc.

    193,809      971

Steelcase, Inc. Class A (Ñ)

    59,100      418

Sterling Construction Co., Inc. (Æ)(Ñ)

    14,200      270

Teekay Corp. (Ñ)

    22,800      569

Thomas & Betts Corp. (Æ)(Ñ)

    14,400      486

Tidewater, Inc. (Ñ)

    73,400      3,437

Trinity Industries, Inc. (Ñ)

    88,200      1,379

Triumph Group, Inc. (Ñ)

    13,365      681

TrueBlue, Inc. (Æ)

    42,200      612

Tsakos Energy Navigation, Ltd.

    102,500      1,653

Tutor Perini Corp. (Æ)(Ñ)

    53,600      1,022

Twin Disc, Inc.

    3,000      29

Unifirst Corp.

    9,200      462

URS Corp. (Æ)

    189,980      8,526

VSE Corp.

    5,002      253

Wabtec Corp. (Ñ)

    129,372      4,959

Waste Connections, Inc. (Æ)(Ñ)

    89,088      2,866

Werner Enterprises, Inc. (Ñ)

    29,600      586

Woodward Governor Co. (Ñ)

    137,249      3,490
         
        207,146
         
Technology - 18.9%        

AboveNet, Inc. (Æ)

    37,378      2,192

Acxiom Corp. (Æ)(Ñ)

    34,114      525

Adaptec, Inc. (Æ)

    436,942      1,328

Adtran, Inc. (Ñ)

    106,094      2,249

Advanced Analogic Technologies, Inc. (Æ)

    210,500      703

Advanced Micro Devices, Inc. (Æ)

    99,500      742

Amdocs, Ltd. (Æ)

    71,007      2,030

Amkor Technology, Inc. (Æ)(Ñ)

    142,600      811

Amphenol Corp. Class A

    174,173      6,939

Ansys, Inc. (Æ)

    206,429      8,641

ArcSight, Inc. (Æ)(Ñ)

    59,100      1,404

Ariba, Inc. (Æ)(Ñ)

    320,317      4,033

Arris Group, Inc. (Æ)(Ñ)

    183,341      1,841

Arrow Electronics, Inc. (Æ)

    148,300      3,896

Art Technology Group, Inc. (Æ)(Ñ)

    354,395      1,588

Aruba Networks, Inc. (Æ)(Ñ)

    243,741      2,532

Atheros Communications, Inc. (Æ)(Ñ)

    77,000      2,469

Aviat Networks, Inc. (Æ)

    65,900      474

Avid Technology, Inc. (Æ)(Ñ)

    22,800      288

Avnet, Inc. (Æ)

    297,800      7,874

AVX Corp.

    156,300      1,857

Benchmark Electronics, Inc. (Æ)

    115,325      2,101

Black Box Corp.

    17,800      489

Bottomline Technologies, Inc. (Æ)

    75,800      1,311

Check Point Software Technologies (Æ)

    63,400      2,028

Ciber, Inc. (Æ)

    222,100      717

Cirrus Logic, Inc. (Æ)(Ñ)

    281,700      1,921

Cogent, Inc. (Æ)(Ñ)

    170,663      1,763

Cognex Corp.

    196,500      3,217

Cogo Group, Inc. (Æ)

    74,600      474

Cohu, Inc.

    173,469      2,246

 

30   Russell U.S. Small & Mid Cap Fund

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Compuware Corp. (Æ)

    227,800      1,729

Comverse Technology, Inc. (Æ)

    315,663      3,002

Concur Technologies, Inc. (Æ)(Ñ)

    137,058      5,434

Cree, Inc. (Æ)

    104,082      5,819

CSG Systems International, Inc. (Æ)

    24,400      474

CTS Corp.

    49,000      373

Cypress Semiconductor Corp. (Æ)

    119,245      1,198

DealerTrack Holdings, Inc. (Æ)

    67,594      1,215

DivX, Inc. (Æ)

    4,200      24

DSP Group, Inc. (Æ)

    3,100      21

Earthlink, Inc. (Ñ)

    351,100      2,847

Electro Scientific Industries, Inc. (Æ)

    323,151      3,623

Emulex Corp. (Æ)

    157,743      1,773

Equinix, Inc. (Æ)(Ñ)

    74,904      7,208

Extreme Networks (Æ)(Ñ)

    11,310      28

F5 Networks, Inc. (Æ)

    112,663      5,569

Flextronics International, Ltd. (Æ)

    536,939      3,404

Fortinet, Inc. (Æ)(Ñ)

    69,915      1,205

Hittite Microwave Corp. (Æ)(Ñ)

    164,068      6,100

Hutchinson Technology, Inc. (Æ)

    8,300      56

Imation Corp. (Æ)(Ñ)

    24,400      218

Informatica Corp. (Æ)

    95,210      2,256

Infospace, Inc. (Æ)

    20,700      192

Ingram Micro, Inc. Class A (Æ)

    227,300      3,841

Internap Network Services Corp. (Æ)

    13,800      61

International Rectifier Corp. (Æ)

    252,899      4,562

Intersil Corp. Class A

    629,834      8,484

Jabil Circuit, Inc.

    70,900      1,027

JDS Uniphase Corp. (Æ)

    51,700      406

Lam Research Corp. (Æ)

    129,871      4,287

Lattice Semiconductor Corp. (Æ)

    122,821      318

LSI Corp. (Æ)

    31,400      157

Marvell Technology Group, Ltd. (Æ)

    113,000      1,970

McAfee, Inc. (Æ)

    80,385      3,031

MEMC Electronic Materials, Inc. (Æ)

    116,659      1,468

Mentor Graphics Corp. (Æ)

    68,066      546

Mercury Computer Systems, Inc. (Æ)

    100      1

Methode Electronics, Inc.

    29,600      325

Micrel, Inc.

    415,840      3,106

Micros Systems, Inc. (Æ)

    135,006      3,858

Molex, Inc. (Ñ)

    86,238      1,739

National Semiconductor Corp.

    146,685      1,945

Ness Technologies, Inc. (Æ)

    25,300      140

Netlogic Microsystems, Inc. (Æ)(Ñ)

    51,692      2,117

Newport Corp. (Æ)

    15,000      128

NICE Systems, Ltd. - ADR (Æ)

    173,750      5,058

Novell, Inc. (Æ)

    225,400      1,008

Novellus Systems, Inc. (Æ)

    83,200      1,739

Omnivision Technologies, Inc. (Æ)(Ñ)

    73,097      943

Openwave Systems, Inc. (Æ)(Ñ)

    4,923      11

Oplink Communications, Inc. (Æ)

    102,700      1,525

Pegasystems, Inc. (Ñ)

    76,830      2,555

Perceptron, Inc. (Æ)(Å)

    216,484      682

Photronics, Inc. (Æ)

    40,400      156

Plexus Corp. (Æ)(Ñ)

    21,300      724

PMC - Sierra, Inc. (Æ)

    244,984      1,948

Powerwave Technologies, Inc. (Æ)(Ñ)

    88,790      122
     Principal
Amount ($)
or Shares		      Market
Value
$

QLogic Corp. (Æ)

    332,414      5,714

Rackspace Hosting, Inc. (Æ)(Ñ)

    150,310      2,739

RealNetworks, Inc. (Æ)

    75,900      320

Red Hat, Inc. (Æ)

    21,900      596

RF Micro Devices, Inc. (Æ)(Ñ)

    355,450      1,368

Riverbed Technology, Inc. (Æ)(Ñ)

    99,099      2,222

Rovi Corp. (Æ)

    200,150      5,778

SAIC, Inc. (Æ)

    146,061      2,677

Salesforce.com, Inc. (Æ)(Ñ)

    103,620      6,585

SBA Communications Corp. Class A (Æ)(Ñ)

    127,033      4,204

Silicon Image, Inc. (Æ)

    75,300      181

Silicon Laboratories, Inc. (Æ)

    84,372      3,564

Siliconware Precision Industries Co. -
ADR (Ñ)

    216,300      1,460

Sina Corp. (Æ)

    63,687      2,303

Skyworks Solutions, Inc. (Æ)(Ñ)

    216,200      2,744

Smith Micro Software, Inc. (Æ)(Ñ)

    209,761      1,626

SolarWinds, Inc. (Æ)

    131,721      2,559

SonicWALL, Inc. (Æ)

    128,171      977

Sonus Networks, Inc. (Æ)

    164,000      346

Standard Microsystems Corp. (Æ)(Ñ)

    14,840      296

Symmetricom, Inc. (Æ)

    5,100      26

SYNNEX Corp. (Æ)(Ñ)

    74,700      1,977

Taleo Corp. Class A (Æ)(Ñ)

    109,781      2,230

Tellabs, Inc.

    769,891      4,950

THQ, Inc. (Æ)(Ñ)

    44,100      222

Tier Technologies, Inc. Class B (Æ)(Ñ)

    289,858      2,232

TTM Technologies, Inc. (Æ)(Ñ)

    17,500      181

Ultimate Software Group, Inc. (Æ)(Ñ)

    45,095      1,348

Unisys Corp. (Æ)

    26,700      771

United Online, Inc.

    602,191      3,806

Varian Semiconductor Equipment Associates, Inc. (Æ)

    102,651      3,011

Veeco Instruments, Inc. (Æ)(Ñ)

    38,495      1,225

VeriFone Holdings, Inc. (Æ)(Ñ)

    271,029      4,822

Verint Systems, Inc. (Æ)

    66,459      1,216

Vishay Intertechnology, Inc. (Æ)

    430,132      3,243

Volterra Semiconductor Corp. (Æ)(Ñ)

    60,600      1,181

Web.com Group, Inc. (Æ)

    11,100      62

Western Digital Corp. (Æ)

    60,900      2,314

White Electronic Designs Corp. (Æ)

    537,656      2,688

Zoran Corp. (Æ)

    187,396      2,056
         
        272,259
         
Utilities - 2.7%        

AGL Resources, Inc.

    5,800      205

Allete, Inc.

    93,800      2,936

Atmos Energy Corp.

    113,700      3,140

Black Hills Corp.

    57,300      1,489

Chesapeake Utilities Corp.

    900      27

Energen Corp.

    38,800      1,705

Hawaiian Electric Industries, Inc.

    121,000      2,393

Integrys Energy Group, Inc. (Ñ)

    24,400      1,021

Laclede Group, Inc. (The)

    18,969      612

Millicom International Cellular SA

    26,034      1,857

Mirant Corp. (Æ)

    82,600      1,162

Neutral Tandem, Inc. (Æ)(Ñ)

    78,784      1,218

 

Russell U.S. Small & Mid Cap Fund   31

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$		  
       

New Jersey Resources Corp.

    35,299      1,288   

Northwest Natural Gas Co.

    24,854      1,078   

NorthWestern Corp.

    26,200      641   

NV Energy, Inc.

    60,800      701   

Piedmont Natural Gas Co., Inc.

    114,400      2,937   

Pinnacle West Capital Corp.

    4,000      143   

Portland General Electric Co.

    49,600      967   

RRI Energy, Inc. (Æ)

    26,900      133   

Shaw Communications, Inc. (Ñ)

    94,055      1,751   

Southern Union Co.

    70,700      1,558   

Southwest Gas Corp. (Ñ)

    125,590      3,475   

UGI Corp.

    168,400      4,128   

US Cellular Corp. (Æ)

    6,300      230   

Vectren Corp.

    86,005      2,002   
           
        38,797   
           

Total Common Stocks

(cost $1,248,903)

         1,386,462   
           
Short-Term Investments - 3.2%        

Russell U.S. Cash Management Fund (£)

    45,910,499      45,910   
           

Total Short-Term Investments

(cost $45,910)

         45,910   
           
Other Securities - 24.7%        

Russell U.S. Cash Collateral Fund (×)

    208,458,916      208,459   

State Street Securities Lending Quality Trust (×)

    147,072,099      146,619   
           

Total Other Securities

(cost $355,531)

         355,078   
           
Total Investments - 124.5% (identified cost $1,650,344)         1,787,450   
Other Assets and Liabilities,
Net - (24.5%)		         (351,621 ) 
           
Net Assets - 100.0%         1,435,829   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

32   Russell U.S. Small & Mid Cap Fund

Table of Contents

Russell Investment Company

Russell U.S. Small & Mid Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
                   
Long Positions                    

Russell 2000 Mini Index (CME)

    844      USD   50,724      03/10      2
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

           2
                     

 

 

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

     Market Value
Portfolio Summary    Level 1      Level 2      Level 3      Total
                 

Common Stocks

                  

Consumer Discretionary

    $ 228,038      $ —      $ —      $ 228,038

Consumer Staples

      31,105        —        —        31,105

Energy

      90,240        —        —        90,240

Financial Services

      244,983        —        —        244,983

Health Care

      158,086        —        —        158,086

Materials and Processing

      115,808        —        —        115,808

Producer Durables

      207,146        —        —        207,146

Technology

      272,259        —        —        272,259

Utilities

      38,797        —        —        38,797

Short-Term Investments

      —        45,910        —        45,910

Other Securities

      —        355,078        —        355,078
                                 

Total Investments

      1,386,462        400,988        —        1,787,450
                                 

Other Financial Instruments

                  

Futures Contracts

      2        —        —        2
                                 

Total Other Financial Instruments*

      2        —        —        2
                                 

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell U.S. Small & Mid Cap Fund   33

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 92.7%        
Australia - 4.0%        

ABC Learning Centres, Ltd. (Æ)(Å)

    43,374      21

Amcor, Ltd.

    2,216,086      11,520

AMP, Ltd.

    844,447      4,657

Ansell, Ltd. - GDR

    53,712      487

ASX, Ltd.

    4,999      150

Australia & New Zealand Banking Group, Ltd.

    473,219      9,052

AXA Asia Pacific Holdings, Ltd.

    40,139      235

BGP Holdings PLC (Æ)

    559,805      —

BHP Billiton, Ltd. (Ñ)

    452,569      15,685

BHP Billiton, Ltd. - ADR (Ñ)

    71,600      4,967

CFS Retail Property Trust (ö)

    112,154      184

Challenger Financial Services Group, Ltd.

    222,279      799

Commonwealth Bank of Australia

    116,250      5,448

Computershare, Ltd.

    17,281      177

Consolidated Media Holdings, Ltd.

    75,274      200

CSL, Ltd.

    280,231      7,752

David Jones, Ltd.

    120,617      506

Dexus Property Group (ö)

    104,811      77

Downer EDI, Ltd.

    40,757      299

Foster’s Group, Ltd.

    2,284,694      10,706

Goodman Group (ö)(Ñ)

    102,631      53

GPT Group (ö)

    198,660      100

Harvey Norman Holdings, Ltd. (Ñ)

    807,084      2,615

Incitec Pivot, Ltd.

    1,702,426      5,044

Lend Lease Group

    8,735      73

MacArthur Coal, Ltd. (Ñ)

    205,353      1,705

Macquarie Atlas Roads Group (Æ)

    195,277      159

Macquarie Group, Ltd.

    101,500      4,472

Macquarie Infrastructure Group

    976,390      1,046

MAP Group

    478,275      1,171

Mirvac Group (ö)

    74,315      95

National Australia Bank, Ltd.

    614,321      14,258

Newcrest Mining, Ltd.

    17,324      475

Origin Energy, Ltd.

    39,774      562

Paladin Energy, Ltd. (Æ)

    39,123      124

Qantas Airways, Ltd. (Ñ)

    725,200      1,813

QBE Insurance Group, Ltd.

    576,412      11,648

Rio Tinto, Ltd.

    122,678      7,324

Santos, Ltd.

    90,139      1,048

Sigma Pharmaceuticals, Ltd.

    526,939      434

Stockland (ö)

    88,849      292

Suncorp-Metway, Ltd.

    87,305      684

TABCORP Holdings, Ltd.

    190,951      1,186

Telstra Corp., Ltd.

    6,656,134      19,633

Transurban Group (Æ)

    44,888      207

Wesfarmers, Ltd.

    502,503      12,144

Westfield Group (ö)

    86,772      966

Westpac Banking Corp.

    73,412      1,542

WorleyParsons, Ltd.

    128,516      2,670
         
        166,465
         
Austria - 0.1%        

Erste Group Bank AG (Ñ)

    80,226      3,029
         
     Principal
Amount ($)
or Shares		      Market
Value
$
Belgium - 0.9%        

Anheuser-Busch InBev NV (Ñ)

    595,111      29,717

Delhaize Group SA

    13,010      1,019

Fortis (Æ)(Ñ)

    718,051      2,512

Fortis (Æ)

    255,564      —

Groupe Bruxelles Lambert SA (Æ)(Ñ)

    3,083      282

KBC Groep NV (Æ)

    137,690      5,971
         
        39,501
         
Bermuda - 1.3%        

Cheung Kong Infrastructure Holdings, Ltd.

    27,000      101

Esprit Holdings, Ltd.

    1,698,279      11,908

Invesco, Ltd.

    292,000      5,636

Jardine Matheson Holdings, Ltd.

    216,600      6,473

Li & Fung, Ltd.

    2,413,000      10,963

Mongolia Energy Co., Ltd. (Æ)

    108,000      53

Noble Group, Ltd. (Ñ)

    2,917,000      5,915

RenaissanceRe Holdings, Ltd.

    190,600      10,327

Seadrill, Ltd.

    118,600      2,687

Yue Yuen Industrial Holdings, Ltd.

    495,500      1,537
         
        55,600
         
Brazil - 1.8%        

Banco do Brasil SA

    43,800      653

BM&F Bovespa SA

    874,600      5,906

Cia de Bebidas das Americas - ADR

    30,800      2,851

Cyrela Brazil Realty SA

    654,200      7,510

Fibria Celulose SA - ADR (Æ)(Ñ)

    118,200      2,161

Gafisa SA

    525,197      6,790

JBS SA

    586,400      2,905

OGX Petroleo e Gas Participacoes SA

    809,800      7,217

PDG Realty SA Empreendimentos e Participacoes

    845,400      6,732

Petroleo Brasileiro SA - ADR

    430,309      17,458

Vale SA Class B (Ñ)

    519,513      13,398

Weg SA

    347,300      3,326
         
        76,907
         
Canada - 2.5%        

Barrick Gold Corp.

    48,600      1,692

Brookfield Asset Management, Inc.

    171,240      3,440

Canadian Imperial Bank of Commerce (Þ)

    58,800      3,514

Canadian National Railway Co.

    466,681      23,301

Canadian Natural Resources, Ltd.

    66,300      4,232

Cenovus Energy, Inc.

    76,400      1,766

Gildan Activewear, Inc. Class A (Æ)

    148,100      3,175

Goldcorp, Inc.

    108,281      3,677

IAMGOLD Corp.

    122,900      1,624

Lundin Mining Corp. (Æ)

    752,900      2,950

Magna International, Inc. Class A

    152,275      8,386

National Bank of Canada

    30,300      1,601

Nexen, Inc.

    238,236      5,216

Potash Corp. of Saskatchewan, Inc.

    28,200      2,802

Research In Motion, Ltd. (Æ)(Ñ)

    207,674      13,075

Royal Bank of Canada - GDR

    86,056      4,208

Sun Life Financial, Inc. (Ñ)

    28,900      844

 

34   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Suncor Energy, Inc.

    143,508      4,531

Teck Resources, Ltd. Class B (Æ)

    349,100      11,430

Telus Corp.

    76,500      2,294
         
        103,758
         
Cayman Islands - 0.4%        

Baidu, Inc. - ADR (Æ)

    14,015      5,770

Belle International Holdings, Ltd.

    3,755,000      4,239

China High Speed Transmission Equipment Group Co., Ltd.

    375,000      743

Tencent Holdings, Ltd.

    299,000      5,547
         
        16,299
         
China - 0.9%        

China Coal Energy Co.

    1,723,000      2,612

China Construction Bank Corp. Class H

    1,203,000      918

China Life Insurance Co., Ltd. Class H

    1,551,000      6,860

China Railway Construction Corp., Ltd. Class H

    2,526,000      3,169

Ctrip.com International, Ltd. - ADR (Æ)

    204,200      6,389

Dongfeng Motor Group Co., Ltd. Class H

    4,628,000      5,997

Li Ning Co., Ltd.

    945,000      2,870

Longtop Financial Technologies, Ltd. - ADR (Æ)

    112,834      3,911

Yanzhou Coal Mining Co., Ltd. Class H

    2,938,000      5,728
         
        38,454
         
Czech Republic - 0.1%        

Komercni Banka AS

    19,999      4,033
         
Denmark - 1.1%        

Carlsberg A/S Class B

    96,284      7,139

Danske Bank A/S (Æ)

    531,238      12,730

FLSmidth & Co. A/S (Ñ)

    43,105      2,721

H Lundbeck A/S (Ñ)

    17,361      324

Novo Nordisk A/S Series B

    326,486      22,098

Novozymes A/S Class B

    30,680      3,160

Vestas Wind Systems A/S (Æ)

    1,320      70
         
        48,242
         
Finland - 0.9%        

Fortum OYJ

    234,755      5,981

Kone OYJ Class B

    74,515      2,995

Konecranes OYJ

    7,585      222

Metso OYJ (Æ)(Ñ)

    25,629      852

Nokia OYJ

    1,538,587      21,239

Sampo OYJ Class A

    44,835      1,087

UPM-Kymmene OYJ

    573,795      6,290
         
        38,666
         
France - 10.6%        

Accor SA

    103,558      5,208

Air Liquide SA

    86,625      9,218

Alcatel-Lucent (Æ)

    2,250,764      7,545

Alstom SA (Ñ)

    232,369      15,481
     Principal
Amount ($)
or Shares		      Market
Value
$

AXA SA

    651,976      13,487

BNP Paribas (Ñ)

    255,305      18,182

Bouygues SA

    77,168      3,812

Capital Gemini SA

    241,700      10,691

Carrefour SA (Ñ)

    412,696      20,182

Casino Guichard Perrachon SA

    36,200      2,981

Christian Dior SA

    19,560      1,980

Cie Generale des Etablissements Michelin Class B

    98,752      7,678

CNP Assurances (Ñ)

    104,230      9,218

Compagnie de Saint-Gobain

    335,077      16,099

Credit Agricole SA

    816,497      12,743

Danone

    134,917      7,729

Electricite de Fance

    97,700      5,266

France Telecom SA

    893,718      20,549

GDF Suez

    271,604      10,298

GDF Suez (Æ)

    55,671      —

Iliad SA

    31,103      3,442

Klepierre - GDR (ö)

    77,663      2,888

Lagardere SCA

    340,296      13,220

Legrand SA

    180,140      5,197

LVMH Moet Hennessy Louis Vuitton SA

    197,364      21,586

M6-Metropole Television

    37,883      1,005

Natixis (Æ)

    863,044      3,984

Nexans SA

    37,166      2,954

Pernod-Ricard SA

    177,075      14,287

PPR

    19,282      2,348

Publicis Groupe SA

    332,481      13,558

Rhodia SA (Æ)

    162,576      2,855

Safran SA

    288,652      5,623

Sanofi-Aventis SA

    244,016      18,002

Schneider Electric SA

    334,197      34,348

Societe Generale

    336,622      19,557

S.O.I.T.E.C. (Æ)

    231,573      3,213

Teleperformance - GDR

    22,213      724

Total SA

    519,936      30,200

Total SA - ADR

    17,900      1,031

Unibail-Rodamco SE (ö)

    11,300      2,455

Vallourec SA

    67,911      11,715

Vinci SA

    108,703      5,791

Vivendi SA

    1,093,573      28,311
         
        446,641
         
Germany - 7.1%        

Adidas AG

    81,096      4,129

Aixtron AG

    120,021      3,597

Allianz SE

    123,051      13,622

BASF SE

    504,857      28,626

Bayer AG (Ñ)

    355,875      24,243

Bayerische Motoren Werke AG

    119,600      5,105

Beiersdorf AG

    99,500      5,810

Celesio AG (Ñ)

    20,000      583

Continental AG (Æ)

    8,476      467

Daimler AG

    692,840      31,928

Deutsche Bank AG

    159,922      9,736

Deutsche Boerse AG

    112,723      7,430

 

Russell International Developed Markets Fund   35

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Deutsche Lufthansa AG

    4,227      68

Deutsche Post AG

    407,720      7,104

Deutsche Telekom AG (Ñ)

    1,120,429      14,505

E.ON AG

    536,326      19,692

GEA Group AG

    128,737      2,637

Hannover Rueckversicherung AG (Æ)

    60,409      2,793

HeidelbergCement AG

    52,700      3,175

Henkel AG & Co. KGaA

    212,255      9,297

Infineon Technologies AG (Æ)

    2,180,430      12,026

Linde AG

    160,440      17,512

MAN SE

    62,161      4,170

Merck KGaA

    89,860      8,012

Metro AG

    218,071      11,957

MTU Aero Engines Holding AG

    39,135      2,034

Muenchener Rueckversicherungs AG

    27,865      4,180

RWE AG

    242,200      21,465

Salzgitter AG

    14,215      1,261

SAP AG

    201,552      9,200

Siemens AG

    52,558      4,710

ThyssenKrupp AG

    162,057      5,121

United Internet AG (Æ)

    118,609      1,750

Volkswagen AG

    4,798      419
         
        298,364
         
Guernsey - 0.1%        

Amdocs, Ltd. (Æ)

    201,400      5,758
         
Hong Kong - 1.4%        

ASM Pacific Technology, Ltd.

    156,600      1,289

BOC Hong Kong Holdings, Ltd. (Ñ)

    190,333      397

Cheung Kong Holdings, Ltd.

    507,000      5,972

China Overseas Land & Investment, Ltd.

    1,944,000      3,457

China Resources Enterprise, Ltd.

    254,000      832

Chinese Estates Holdings, Ltd.

    32,000      51

CLP Holdings, Ltd. (Ñ)

    91,500      618

CNOOC, Ltd.

    10,709,650      15,032

Foxconn International Holdings, Ltd. (Æ)

    81,000      85

Hang Lung Group, Ltd.

    37,462      168

Hang Lung Properties, Ltd. - ADR

    796,000      2,691

Hang Seng Bank, Ltd.

    27,600      386

Henderson Land Development Co., Ltd.

    59,000      370

Hong Kong & China Gas Co., Ltd. (Ñ)

    187,000      406

Hong Kong Exchanges and Clearing, Ltd.

    39,754      672

Hongkong Electric Holdings, Ltd.

    1,364,500      7,630

Hopewell Holdings, Ltd.

    41,000      124

Hutchison Whampoa, Ltd.

    78,500      534

Link REIT (The) (ö)

    95,500      229

New World Development, Ltd.

    947,020      1,550

Shangri-La Asia, Ltd.

    1,134,000      1,972

Shougang Concord International Enterprises Co., Ltd. (Æ)

    11,410,000      2,331

Sino Land Co., Ltd.

    896,000      1,475

Sun Hung Kai Properties, Ltd.

    233,333      2,989

Swire Pacific, Ltd.

    32,321      352

Television Broadcasts, Ltd.

    75,334      352
     Principal
Amount ($)
or Shares		      Market
Value
$

Wharf Holdings, Ltd.

    903,196      4,460

Wheelock & Co., Ltd.

    100,068      260
         
        56,684
         
India - 0.9%        

HDFC Bank, Ltd. - ADR (Ñ)

    18,550      2,194

ICICI Bank, Ltd.

    157,264      2,807

ICICI Bank, Ltd. - ADR

    320,304      11,300

Infosys Technologies, Ltd. (Ñ)

    154,090      8,182

Infosys Technologies, Ltd. - ADR

    82,018      4,258

Reliance Industries, Ltd. - GDR (Þ)

    148,750      6,768

State Bank of India, Ltd. - GDR

    24,500      2,158
         
        37,667
         
Indonesia - 0.2%        

Bank Rakyat Indonesia

    7,657,500      6,222
         
Ireland - 0.6%        

Cooper Industries PLC

    107,179      4,598

Covidien PLC

    182,800      9,243

CRH PLC

    189,551      4,548

Ingersoll-Rand PLC (Ñ)

    76,000      2,467

Ryanair Holdings PLC - ADR (Æ)

    173,526      4,508
         
        25,364
         
Israel - 0.6%        

Bezeq Israeli Telecommunication Corp., Ltd.

    810,449      2,069

Israel Chemicals, Ltd.

    144,000      1,861

Teva Pharmaceutical Industries, Ltd. - ADR

    383,766      21,767
         
        25,697
         
Italy - 2.0%        

Banca Popolare di Milano Scarl (Ñ)

    715,880      4,633

Enel SpA

    385,188      2,080

ENI SpA

    510,734      11,896

Fiat SpA (Æ)

    395,120      4,918

Finmeccanica SpA

    656,154      9,077

Intesa Sanpaolo SpA (Æ)

    3,427,998      13,027

Mediaset SpA

    91,102      690

Prysmian SpA

    60,199      1,096

Saipem SpA

    309,076      9,985

Telecom Italia SpA

    7,056,217      9,766

UniCredit SpA (Æ)

    5,360,013      14,926
         
        82,094
         
Japan - 15.1%        

Advantest Corp. (Ñ)

    231,700      5,726

Aeon Co., Ltd.

    418,900      4,177

Aeon Credit Service Co., Ltd.

    257,400      2,663

Amada Co., Ltd. (Ñ)

    45,000      302

Asahi Breweries, Ltd.

    108,900      2,132

Asahi Glass Co., Ltd.

    812,000      8,143

Astellas Pharma, Inc. (Ñ)

    421,000      15,519

 

36   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Canon Marketing Japan, Inc.

    50,600      700

Canon, Inc.

    1,244,363      48,701

Central Glass Co., Ltd.

    135,000      554

Chubu Electric Power Co., Inc.

    57,000      1,448

Circle K Sunkus Co., Ltd.

    65,900      853

COMSYS Holdings Corp.

    66,100      654

Dai Nippon Printing Co., Ltd.

    146,000      2,015

Daifuku Co., Ltd.

    81,500      519

Daikin Industries, Ltd.

    168,200      6,212

Daito Trust Construction Co., Ltd.

    3,500      166

Daiwa House Industry Co., Ltd.

    20,000      210

Daiwa Securities Group, Inc.

    1,282,000      6,392

Doutor Nichires Holdings Co., Ltd.

    34,200      432

Dowa Holdings Co., Ltd.

    192,000      1,062

East Japan Railway Co.

    44,800      3,008

FamilyMart Co., Ltd.

    200,000      6,325

Fanuc, Ltd.

    104,200      9,941

Fast Retailing Co., Ltd.

    26,400      4,387

FUJIFILM Holdings Corp.

    75,700      2,425

Fujikura, Ltd.

    233,000      1,250

Fujitsu, Ltd. (Ñ)

    206,000      1,259

Funai Electric Co., Ltd.

    15,200      757

Glory, Ltd.

    16,700      367

Hakuhodo DY Holdings, Inc.

    3,170      156

Hanwa Co., Ltd.

    44,000      162

Hirose Electric Co., Ltd. (Ñ)

    28,300      3,018

Hitachi Capital Corp.

    46,000      620

Hitachi Construction Machinery Co., Ltd. (Ñ)

    104,700      2,192

Hitachi High-Technologies Corp.

    27,600      543

Honda Motor Co., Ltd. (Ñ)

    535,600      18,173

Hoya Corp.

    591,500      15,863

Ibiden Co., Ltd.

    36,800      1,254

Inpex Corp.

    1,358      9,923

ITOCHU Corp.

    602,000      4,688

Japan Real Estate Investment Corp. Class A (ö)

    18      151

Japan Tobacco, Inc.

    366      1,320

JFE Holdings, Inc.

    126,100      4,377

JGC Corp.

    82,000      1,524

JTEKT Corp.

    191,200      2,167

Jupiter Telecommunications Co., Ltd.

    1,823      1,827

Kagoshima Bank, Ltd. (The)

    75,000      537

Kaken Pharmaceutical Co., Ltd.

    90,000      762

Kandenko Co., Ltd.

    88,000      561

Kaneka Corp.

    138,000      892

Kansai Paint Co., Ltd.

    166,000      1,348

Kao Corp.

    743,800      17,976

KDDI Corp.

    2,858      15,072

Keiyo Bank, Ltd. (The) (Ñ)

    65,000      305

Keyence Corp.

    23,900      5,512

Kinden Corp.

    30,000      271

Komatsu, Ltd.

    180,000      3,602

Konica Minolta Holdings, Inc.

    292,500      2,977

Kose Corp.

    12,200      246

Kurita Water Industries, Ltd.

    160,300      4,959

Kyocera Corp.

    32,600      3,021
     Principal
Amount ($)
or Shares		      Market
Value
$

Lawson, Inc.

    145,000      6,581

Lintec Corp.

    16,100      309

Marubeni Corp. (Ñ)

    1,937,000      11,230

MEGMILK SNOW BRAND Co., Ltd. (Ñ)

    9,000      130

Miraca Holdings, Inc.

    45,200      1,353

Mitsubishi Corp.

    1,033,800      24,854

Mitsubishi Estate Co., Ltd.

    43,000      698

Mitsubishi Materials Corp.

    349,000      902

Mitsubishi UFJ Financial Group, Inc. (Ñ)

    2,432,500      12,516

Mitsubishi UFJ Lease & Finance Co., Ltd.

    14,020      484

Mitsui & Co., Ltd.

    361,200      5,279

Mitsui Fudosan Co., Ltd.

    587,000      9,920

Mitsumi Electric Co., Ltd.

    71,200      1,234

Mizuho Financial Group, Inc. (Ñ)

    3,268,500      6,297

Murata Manufacturing Co., Ltd. (Ñ)

    118,700      6,524

Musashino Bank, Ltd. (The)

    12,200      330

Namco Bandai Holdings, Inc. (Ñ)

    76,800      774

NEC Electronics Corp. (Æ)

    27,800      233

NGK Spark Plug Co., Ltd. (Ñ)

    112,800      1,306

Nichirei Corp.

    95,000      356

Nintendo Co., Ltd. (Ñ)

    30,200      8,445

Nippon Building Fund, Inc. Class A (ö)

    20      178

Nippon Electric Glass Co., Ltd. (Ñ)

    667,000      9,419

Nippon Kayaku Co., Ltd.

    84,000      699

Nippon Mining Holdings, Inc.

    945,000      4,062

Nippon Telegraph & Telephone Corp. (Ñ)

    193,800      8,186

Nissan Motor Co., Ltd. (Æ)

    1,131,100      9,146

Nissan Shatai Co., Ltd.

    98,000      832

Nitori Co., Ltd.

    18,250      1,383

Nitto Denko Corp.

    138,800      5,338

Nomura Holdings, Inc.

    1,718,500      12,861

Okinawa Electric Power Co., Inc. (The)

    10,500      574

Omron Corp.

    761,100      15,155

ORIX Corp.

    94,570      7,081

Osaka Gas Co., Ltd.

    495,000      1,743

Panasonic Corp.

    387,600      6,097

Point, Inc.

    1,570      90

Ricoh Co., Ltd.

    446,500      6,361

SBI Holdings, Inc.

    632      121

Seino Holdings Corp.

    117,000      784

Sekisui House, Ltd.

    524,000      4,969

Seven & I Holdings Co., Ltd.

    628,500      13,752

Sharp Corp.

    309,000      3,686

Shin-Etsu Chemical Co., Ltd.

    209,800      10,927

Shinko Electric Industries Co., Ltd.

    85,600      1,148

Sony Corp.

    55,600      1,851

Stanley Electric Co., Ltd.

    65,600      1,277

Sumco Corp. (Ñ)

    314,300      5,379

Sumitomo Bakelite Co., Ltd.

    153,000      829

Sumitomo Electric Industries, Ltd.

    122,100      1,598

Sumitomo Forestry Co., Ltd.

    7,600      56

Sumitomo Mitsui Financial Group, Inc.

    481,800      15,568

Sumitomo Realty & Development Co., Ltd. (Ñ)

    214,000      3,790

Takara Holdings, Inc.

    34,000      187

Takeda Pharmaceutical Co., Ltd.

    441,600      19,413

Terumo Corp.

    51,600      2,902

 

Russell International Developed Markets Fund   37

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

THK Co., Ltd.

    597,200      11,772

Tokai Rika Co., Ltd.

    45,400      950

Tokio Marine Holdings, Inc. (Ñ)

    407,000      10,962

Tokuyama Corp.

    88,000      467

Tokyo Electric Power Co., Inc. (The) (Ñ)

    142,700      3,849

Tokyo Electron, Ltd.

    215,700      13,078

Tokyo Steel Manufacturing Co., Ltd.

    63,700      632

Toshiba Corp.

    1,726,000      9,427

Toyo Seikan Kaisha, Ltd. (Ñ)

    41,100      579

Toyo Suisan Kaisha, Ltd.

    66,000      1,743

Toyoda Gosei Co., Ltd.

    106,700      2,933

Toyota Auto Body Co., Ltd.

    17,500      307

Toyota Motor Corp.

    724,100      27,769

USS Co., Ltd. (Ñ)

    15,980      975

West Japan Railway Co.

    1,382      4,766

Yahoo! Japan Corp. (Æ)

    3,605      1,367

Yamato Holdings Co., Ltd.

    40,500      557
         
        633,628
         
Kazakhstan - 0.1%        

KazMunaiGas Exploration Production - GDR

    83,150      2,112
         
Luxembourg - 0.2%        

ArcelorMittal

    176,723      6,763

Evraz Group SA - GDR (Æ)

    104,980      3,485
         
        10,248
         
Malaysia - 0.1%        

CIMB Group Holdings BHD

    734,300      2,720
         
Mauritius - 0.0%        

Golden Agri-Resources, Ltd. (Æ)

    4,344,000      1,592
         
Mexico - 0.1%        

America Movil SAB de CV Series L

    37,310      1,629

Cemex SAB de CV - ADR (Æ)

    277,404      2,549

Wal-Mart de Mexico SAB de CV

    334,400      1,482
         
        5,660
         
Netherlands - 4.5%        

Aegon NV (Æ)

    1,096,091      6,606

Akzo Nobel NV

    323,056      19,292

ASML Holding NV

    233,237      7,345

Brit Insurance Holdings NV

    287,422      854

Corio NV (ö)

    2,598      160

CSM

    24,312      671

European Aeronautic Defence and Space Co. NV

    382,247      7,453

Fugro NV

    51,530      3,045

Heineken NV

    586,666      28,834

Imtech NV

    12,522      337

ING Groep NV (Æ)

    2,649,611      24,904

Koninklijke Ahold NV

    491,796      6,189

Koninklijke DSM NV

    157,152      7,283

Koninklijke Philips Electronics NV

    855,046      25,849
     Principal
Amount ($)
or Shares		      Market
Value
$

New World Resources NV

    178,956      1,857

QIAGEN NV (Æ)

    177,051      3,854

Randstad Holding NV (Æ)

    159,132      7,602

Reed Elsevier NV

    808,717      9,741

STMicroelectronics NV

    267,003      2,169

TNT NV

    310,210      8,866

Unilever NV

    274,561      8,428

Wolters Kluwer NV

    422,640      8,795
         
        190,134
         
Netherlands Antilles - 0.0%        

Hunter Douglas NV

    7,279      330
         
New Zealand - 0.2%        

Fletcher Building, Ltd.

    428,501      2,352

Telecom Corp. of New Zealand, Ltd.

    2,058,019      3,439

Telecom Corp. of New Zealand, Ltd. (Ñ)

    910,400      1,498
         
        7,289
         
Norway - 0.4%        

DnB NOR ASA (Æ)

    533,200      6,069

Statoil ASA

    74,600      1,669

Telenor ASA (Æ)

    815,700      10,631
         
        18,369
         
Puerto Rico - 0.1%        

Popular, Inc.

    1,202,900      2,586
         
Russia - 0.7%        

Gazprom OAO - ADR

    733,582      17,910

Lukoil OAO - ADR

    52,450      2,916

Mechel - ADR

    146,300      2,895

MMC Norilsk Nickel - ADR (Æ)

    158,060      2,458

Rosneft Oil Co. - GDR

    252,433      1,951
         
        28,130
         
Singapore - 1.3%        

Ascendas Real Estate Investment Trust (ö)

    77,000      106

CapitaLand, Ltd.

    4,990,000      13,562

CapitaMall Trust (Æ)(ö)

    112,000      134

City Developments, Ltd. (Ñ)

    324,000      2,451

ComfortDelgro Corp., Ltd. (Ñ)

    71,000      80

DBS Group Holdings, Ltd.

    78,000      786

Fraser and Neave, Ltd.

    58,000      170

Haw Par Corp., Ltd.

    223      1

Jardine Cycle & Carriage, Ltd.

    30,800      551

Keppel Corp., Ltd.

    105,000      621

Neptune Orient Lines, Ltd.

    242,000      295

Oversea-Chinese Banking Corp., Ltd.

    1,040,285      6,027

Pacific Century Regional Developments, Ltd.

    262,000      34

SembCorp Industries, Ltd.

    47,000      116

Singapore Exchange, Ltd.

    37,000      209

Singapore Technologies Engineering, Ltd.

    52,000      114

Singapore Telecommunications, Ltd.

    8,330,810      17,712

 

38   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

United Overseas Bank, Ltd.

    1,012,857      13,051

UOL Group, Ltd.

    222      1
         
        56,021
         
South Africa - 0.2%        

MTN Group, Ltd.

    261,020      3,719

Naspers, Ltd. Class N

    102,148      3,600
         
        7,319
         
South Korea - 1.0%        

Hynix Semiconductor, Inc. (Æ)

    106,400      2,079

Hyundai Mobis (Æ)

    45,699      5,811

Hyundai Motor Co.

    61,275      5,949

Hyundai Motor Co. - GDR (Þ)

    12,130      590

KB Financial Group, Inc. (Æ)

    153,812      6,633

LG Corp. (Æ)

    44,892      2,421

Samsung Electronics Co., Ltd.

    29,755      20,051
         
        43,534
         
Spain - 3.4%        

Banco Bilbao Vizcaya Argentaria SA

    616,818      9,371

Banco Santander SA

    2,494,000      35,139

Endesa SA (Ñ)

    48,340      1,470

Gestevision Telecinco SA

    177,264      2,535

Iberdrola SA

    2,032,291      17,275

Inditex SA

    309,719      19,467

Tecnicas Reunidas SA

    26,767      1,435

Telefonica SA (Ñ)

    2,394,387      57,513
         
        144,205
         
Sweden - 0.4%        

Electrolux AB (Æ)

    154,551      3,665

Investor AB Class B

    23,074      406

Nordea Bank AB

    270,276      2,481

Skandinaviska Enskilda Banken AB Class A (Æ)

    402,685      2,403

Svenska Cellulosa AB Class B

    118,842      1,607

Tele2 AB Class B

    116,801      1,642

Telefonaktiebolaget LM Ericsson Class B

    553,830      5,372
         
        17,576
         
Switzerland - 8.3%        

ABB, Ltd. (Æ)

    738,301      13,353

Actelion, Ltd. (Æ)

    176,141      9,332

Adecco SA

    115,410      6,238

Baloise-Holding AG (Ñ)

    20,140      1,675

Cie Financiere Richemont SA

    302,768      10,149

Clariant AG (Æ)

    479,300      5,260

Credit Suisse Group AG

    875,834      37,963

GAM Holding, Ltd.

    211,278      2,435

Givaudan SA

    14,099      11,484

Helvetia Holding AG

    1,693      526

Holcim, Ltd. (Æ)

    36,089      2,485

Julius Baer Group, Ltd.

    396,875      13,038

Kuehne + Nagel International AG (Ñ)

    7,847      757
     Principal
Amount ($)
or Shares		      Market
Value
$

Lonza Group AG

    78,364      5,528

Nestle SA

    996,291      47,144

Nobel Biocare Holding AG (Æ)

    74,113      2,174

Novartis AG

    834,160      44,678

Roche Holding AG

    231,126      38,817

Sonova Holding AG

    43,871      5,428

Swatch Group AG (The)

    89,166      4,467

Swatch Group AG (The)

Class B

    24,507      6,389

Swiss Reinsurance Co., Ltd.

    52,344      2,282

Syngenta AG

    35,012      8,950

Transocean, Ltd. (Æ)

    202,643      17,172

Tyco Electronics, Ltd.

    644,200      16,028

Tyco International, Ltd.

    83,500      2,958

UBS AG (Æ)

    1,234,951      16,043

Zurich Financial Services AG

    66,965      14,190
         
        346,943
         
Taiwan - 0.6%        

Acer, Inc.

    990,810      2,726

AU Optronics Corp.

    2,248,490      2,488

Compal Electronics, Inc.

    1,015,075      1,412

HON HAI Precision Industry Co., Ltd. (Å)

    1,789,320      7,506

MediaTek, Inc.

    222,378      3,602

Taiwan Semiconductor Manufacturing Co., Ltd. - ADR

    588,369      5,978
         
        23,712
         
Turkey - 0.2%        

Turkiye Garanti Bankasi AS

    1,247,960      5,248

Turkiye Vakiflar Bankasi Tao Class D (Æ)

    867,611      2,266
         
        7,514
         
United Kingdom - 17.9%        

Aegis Group PLC

    4,504,522      8,560

AMEC PLC - GDR

    354,962      4,269

Amlin PLC (Ñ)

    310,778      1,930

Anglo American PLC (Æ)

    98,309      3,567

Antofagasta PLC

    432,536      6,048

AstraZeneca PLC (Ñ)

    316,537      14,717

Atkins WS PLC

    115,824      1,099

Autonomy Corp. PLC (Æ)

    526,975      13,101

Aviva PLC (Ñ)

    3,261,389      20,150

BAE Systems PLC (Ñ)

    2,131,500      11,997

Barclays PLC

    5,272,882      22,582

BBA Aviation PLC

    383,326      1,005

BG Group PLC

    1,344,348      24,619

BHP Billiton PLC

    338,108      9,931

BP PLC

    7,473,391      69,942

British Land Co. PLC (ö)

    61,280      425

British Sky Broadcasting Group PLC

    733,017      6,205

BT Group PLC

    1,502,000      3,296

Bunzl PLC

    566,200      5,622

Burberry Group PLC

    494,710      4,851

Cadbury PLC

    54,812      726

Cairn Energy PLC (Æ)

    630,440      3,249

Capita Group PLC (The) (Ñ)

    299,712      3,446

 

Russell International Developed Markets Fund   39

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Carillion PLC

    1,147,558      5,461

Compass Group PLC

    2,372,290      16,132

Diageo PLC

    731,233      12,310

Drax Group PLC

    41,900      275

Electrocomponents PLC

    101,094      285

Eurasian Natural Resources Corp.

    67,369      964

Experian PLC

    338,961      3,224

Game Group PLC

    60,634      89

GlaxoSmithKline PLC

    1,806,832      35,175

Greene King PLC

    158,500      1,124

Hays PLC (Ñ)

    2,321,101      4,060

Home Retail Group PLC

    1,016,570      4,126

HSBC Holdings PLC

    5,293,392      56,714

Imperial Tobacco Group PLC

    72,251      2,334

International Power PLC

    2,708,957      13,814

J Sainsbury PLC

    200,932      1,037

John Wood Group PLC (Ñ)

    223,553      1,207

Kazakhmys PLC (Æ)

    225,050      4,288

Kesa Electricals PLC

    472,613      966

Kingfisher PLC

    853,200      2,888

Ladbrokes PLC

    800,369      1,991

Land Securities Group PLC (ö)

    40,123      407

Lloyds Banking Group PLC (Æ)

    3,405      3

Logica PLC (Ñ)

    749,853      1,403

Marks & Spencer Group PLC (Ñ)

    892,300      4,961

Mondi PLC

    328,334      1,867

Next PLC

    100,330      3,144

Old Mutual PLC (Æ)(Ñ)

    3,149,800      5,189

Persimmon PLC (Æ)

    379,200      2,612

Petrofac, Ltd.

    282,616      4,311

Reckitt Benckiser Group PLC

    701,812      36,479

Rentokil Initial PLC (Æ)

    1,918,800      3,526

Rio Tinto PLC

    226,723      10,879

Rolls-Royce Group PLC (Æ)

    1,559,385      11,933

Rotork PLC

    101,577      2,051

Royal Bank of Scotland Group PLC (Æ)

    12,963,160      6,593

Royal Dutch Shell PLC Class A

    1,622      45,241

Royal Dutch Shell PLC Class B

    181,087      4,836

Smith & Nephew PLC (Ñ)

    988,138      9,941

Smiths Group PLC

    355,609      5,666

Standard Chartered PLC

    1,088,153      24,876

Subsea 7, Inc. (Æ)

    276,200      4,620

Taylor Wimpey PLC (Æ)

    1,851,591      1,139

Tesco PLC

    1,816,237      12,285

Thomas Cook Group PLC

    384,900      1,396

Travis Perkins PLC (Æ)

    1,026,594      11,973

Trinity Mirror PLC (Æ)

    25,472      61

TUI Travel PLC

    354,500      1,469

Tullow Oil PLC

    371,730      6,805

Unilever PLC (Ñ)

    821,770      25,063

Vedanta Resources PLC (Ñ)

    112,169      4,275

Vodafone Group PLC (Ñ)

    19,214,197      41,278

William Hill PLC

    1,337,466      4,258

WM Morrison Supermarkets PLC

    395,755      1,820

Wolseley PLC (Æ)(Ñ)

    527,194      11,626

WPP PLC

    1,883,228      17,380

Xstrata PLC (Æ)(Ñ)

    824,953      13,490
         
        754,657
         
     Principal
Amount ($)
or Shares		      Market
Value
$
United States - 0.4%        

Autoliv, Inc. (Æ)(Ñ)

    113,100      4,842

Synthes, Inc. (Æ)(Ñ)

    92,380      11,782

Tim Hortons, Inc.

    70,630      2,032
         
        18,656
         
Total Common Stocks
(cost $3,713,453)		         3,898,380
         
Preferred Stocks - 0.4%        
Brazil - 0.3%        

Itau Unibanco Holding SA

    262,800      5,037

Usinas Siderurgicas de Minas Gerais SA

    221,800      5,836
         
        10,873
         
Germany - 0.1%        

Fresenius SE

    37,691      2,568
         
South Korea - 0.0%        

Samsung Electronics Co., Ltd.

    2,500      1,100
         
Total Preferred Stocks
(cost $12,715)		         14,541
         
Warrants & Rights - 0.3%        
Jersey - 0.0%        

Baskets-Luxembourg Exchange (Æ) 2014 Warrants

    12,331      2,132
         
Switzerland - 0.2%        

Baskets-Luxembourg Exchange (Æ) 2011 Warrants

    23,630      2,152

UBS AG (Æ)
2010 Warrants

    149,075      4,486
         
United States - 0.1%        

Acer, Inc. (Þ)(Æ)
2014 Warrants

    236,000      658

Acer, Inc. (Æ)
2014 Warrants

    854,000      2,398

Epistar Corp. (Þ)(Æ)
2014 Warrants

    536,700      1,696

Yuanta Financial Holding Co., Ltd. (Þ)(Æ) 2014 Warrants

    775,000      496
         
        7,380
         
Total Warrants & Rights
(cost $13,821)		         14,018
         
Short-Term Investments - 6.1%        
United States - 6.1%        

Russell U.S. Cash Management Fund (£)

    257,823,185      257,823
         
Total Short-Term Investments
(cost $257,823)		         257,823
         

 

40   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$		  
       
Other Securities - 8.6%        

Russell U.S. Cash Collateral Fund (×)

    213,258,048      213,258   

State Street Securities Lending Quality Trust (×)

    150,457,986      149,995   
           
Total Other Securities
(cost $363,716)		         363,253   
           
Total Investments - 108.1%
(identified cost $4,361,528)		         4,548,015   
Other Assets and Liabilities,
Net - (8.1%)		         (342,019 ) 
           
Net Assets - 100.0%         4,205,996   
           

 

 

A portion of the portfolio has been fair valued as of period end.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell International Developed Markets Fund   41

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
                   
Long Positions                    

AEX Index (Netherlands)

    365      EUR   23,882      02/10      (1,000)

CAC-40 Index (France)

    935      EUR   34,955      02/10      (3,164)

DAX Index (Germany)

    100      EUR   14,019      03/10      (915)

EUR STOXX 50 Index (EMU)

    1,370      EUR   37,990      03/10      (2,302)

FTSE MIB Index (UK)

    190      EUR   20,766      03/10      (1,146)

FTSE-100 Index (UK)

    789      GBP   40,622      03/10      (1,347)

Hang Seng Index (Hong Kong)

    55      HKD   55,558      02/10      (102)

IBEX Plus Index (Spain)

    131      EUR   14,312      02/10      (1,921)

MIB-30 (Italy)

    12      SGD   787      02/10      (10)

SPI 200 Index (Australia)

    196      AUD   22,275      03/10      (544)

TOPIX Index (Japan)

    541      JPY   4,839,245      03/10      355
Short Positions                    

Hang Seng Index (Hong Kong)

    58      HKD   58,589      02/10      67

OMX Index (Sweden)

    147      SEK   14,016      02/10      31

SPI 200 Index (Australia)

    264      AUD   30,004      03/10      649

Swiss Market Index (SMI)

    478      CHF   30,544      03/10      623

TOPIX Index (Japan)

    164      JPY   1,466,980      03/10      71
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

           (10,655)
                     

 

See accompanying notes which are an integral part of the Quarterly Report.

 

42   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount
Sold		      Amount
Bought		      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  

Bank of America

      USD      713      AUD      785      03/17/10      (21 ) 

Bank of America

      USD      1,644      AUD      1,824      03/17/10      (39 ) 

Bank of America

      USD      42      DKK      208      03/17/10      (3 ) 

Bank of America

      USD      229      GBP      142      03/17/10      (2 ) 

Bank of America

      USD      307      GBP      191      03/17/10      (2 ) 

Bank of America

      USD      5,164      NOK      29,118      03/17/10      (258 ) 

Bank of America

      USD      6,195      NOK      34,923      03/17/10      (310 ) 

Bank of America

      AUD      577      USD      523      03/17/10      14   

Bank of America

      AUD      1,943      USD      1,782      03/17/10      71   

Bank of America

      CHF      106      USD      105      03/17/10      4   

Bank of America

      CHF      146      USD      143      03/17/10      6   

Bank of America

      EUR      3,980      USD      5,772      03/17/10      254   

Bank of America

      EUR      4,767      USD      6,915      03/17/10      306   

Bank of America

      HKD      506      USD      65      03/17/10      —   

Bank of America

      JPY      12,994      USD      151      03/17/10      7   

Bank of America

      SGD      11      USD      8      03/17/10      —   

Barclays Bank PLC

      USD      36      SEK      265      02/01/10      —   

Barclays Bank PLC

      USD      3      SGD      5      02/01/10      —   

Barclays Bank PLC

      USD      16,906      EUR      11,488      03/17/10      (979 ) 

Barclays Bank PLC

      AUD      667      USD      582      02/01/10      (7 ) 

Barclays Bank PLC

      EUR      906      USD      1,282      02/01/10      26   

Barclays Bank PLC

      EUR      170      USD      236      02/03/10      —   

Barclays Bank PLC

      EUR      3,175      USD      4,672      03/17/10      270   

Barclays Bank PLC

      GBP      54      USD      92      02/01/10      6   

Barclays Bank PLC

      HKD      90      USD      12      02/01/10      —   

Barclays Bank PLC

      JPY      33,620      USD      367      02/01/10      (5 ) 

Brown Brothers Harriman Co.

      USD      1,298      AUD      1,430      03/17/10      (38 ) 

Brown Brothers Harriman Co.

      USD      3,515      AUD      4,000      03/17/10      7   

Brown Brothers Harriman Co.

      USD      1,476      CHF      1,547      02/01/10      (18 ) 

Brown Brothers Harriman Co.

      USD      123      CHF      123      03/17/10      (7 ) 

Brown Brothers Harriman Co.

      USD      391      CHF      405      03/17/10      (9 ) 

Brown Brothers Harriman Co.

      USD      143      DKK      770      02/03/10      —   

Brown Brothers Harriman Co.

      USD      268      EUR      193      02/02/10      —   

Brown Brothers Harriman Co.

      USD      218      EUR      145      03/17/10      (17 ) 

Brown Brothers Harriman Co.

      USD      247      EUR      166      03/17/10      (17 ) 

Brown Brothers Harriman Co.

      USD      1,407      EUR      998      03/17/10      (23 ) 

Brown Brothers Harriman Co.

      USD      2,495      EUR      1,758      03/17/10      (58 ) 

Brown Brothers Harriman Co.

      USD      24,269      EUR      17,000      03/17/10      (701 ) 

Brown Brothers Harriman Co.

      USD      143      GBP      89      02/01/10      (2 ) 

Brown Brothers Harriman Co.

      USD      197      GBP      122      02/01/10      (2 ) 

Brown Brothers Harriman Co.

      USD      689      GBP      426      02/01/10      (8 ) 

Brown Brothers Harriman Co.

      USD      130      GBP      81      02/02/10      (1 ) 

Brown Brothers Harriman Co.

      USD      336      GBP      208      02/02/10      (3 ) 

Brown Brothers Harriman Co.

      USD      21      GBP      13      02/03/10      —   

Brown Brothers Harriman Co.

      USD      84      GBP      53      02/03/10      —   

Brown Brothers Harriman Co.

      USD      138      GBP      86      02/03/10      —   

Brown Brothers Harriman Co.

      USD      714      GBP      446      02/03/10      (1 ) 

Brown Brothers Harriman Co.

      USD      1,108      GBP      692      02/03/10      (2 ) 

Brown Brothers Harriman Co.

      USD      162      GBP      98      03/17/10      (5 ) 

Brown Brothers Harriman Co.

      USD      777      GBP      473      03/17/10      (22 ) 

Brown Brothers Harriman Co.

      USD      6,094      GBP      3,805      03/17/10      (13 ) 

Brown Brothers Harriman Co.

      USD      6,430      GBP      3,939      03/17/10      (136 ) 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell International Developed Markets Fund   43

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount
Sold		      Amount
Bought		      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  

Brown Brothers Harriman Co.

      USD      12,057      GBP      7,500      03/17/10      (72 ) 

Brown Brothers Harriman Co.

      USD      12,128      JPY      1,100,000      03/17/10      60   

Brown Brothers Harriman Co.

      USD      1,800      NOK      10,349      03/17/10      (57 ) 

Brown Brothers Harriman Co.

      USD      2,503      SEK      17,771      03/17/10      (97 ) 

Brown Brothers Harriman Co.

      AUD      186      USD      170      03/17/10      6   

Brown Brothers Harriman Co.

      AUD      2,000      USD      1,827      03/17/10      65   

Brown Brothers Harriman Co.

      CHF      98      USD      92      02/03/10      —   

Brown Brothers Harriman Co.

      CHF      59      USD      57      03/17/10      1   

Brown Brothers Harriman Co.

      CHF      65      USD      63      03/17/10      2   

Brown Brothers Harriman Co.

      CHF      75      USD      72      03/17/10      2   

Brown Brothers Harriman Co.

      CHF      103      USD      102      03/17/10      5   

Brown Brothers Harriman Co.

      CHF      319      USD      313      03/17/10      12   

Brown Brothers Harriman Co.

      CHF      555      USD      532      03/17/10      8   

Brown Brothers Harriman Co.

      EUR      259      USD      360      02/02/10      —   

Brown Brothers Harriman Co.

      EUR      522      USD      724      02/02/10      —   

Brown Brothers Harriman Co.

      EUR      549      USD      762      02/02/10      —   

Brown Brothers Harriman Co.

      EUR      1,039      USD      1,441      02/02/10      1   

Brown Brothers Harriman Co.

      EUR      248      USD      344      02/03/10      —   

Brown Brothers Harriman Co.

      EUR      899      USD      1,247      02/03/10      1   

Brown Brothers Harriman Co.

      EUR      17      USD      24      03/17/10      1   

Brown Brothers Harriman Co.

      EUR      114      USD      166      03/17/10      8   

Brown Brothers Harriman Co.

      EUR      868      USD      1,284      03/17/10      80   

Brown Brothers Harriman Co.

      EUR      2,000      USD      2,849      03/17/10      77   

Brown Brothers Harriman Co.

      EUR      3,000      USD      4,315      03/17/10      156   

Brown Brothers Harriman Co.

      EUR      4,000      USD      5,729      03/17/10      184   

Brown Brothers Harriman Co.

      GBP      67      USD      107      02/03/10      —   

Brown Brothers Harriman Co.

      GBP      72      USD      115      02/03/10      —   

Brown Brothers Harriman Co.

      GBP      155      USD      247      02/03/10      —   

Brown Brothers Harriman Co.

      GBP      167      USD      267      02/03/10      —   

Brown Brothers Harriman Co.

      GBP      508      USD      813      02/03/10      1   

Brown Brothers Harriman Co.

      GBP      562      USD      899      02/03/10      1   

Brown Brothers Harriman Co.

      GBP      1,021      USD      1,660      03/17/10      29   

Brown Brothers Harriman Co.

      GBP      2,000      USD      3,191      03/17/10      (5 ) 

Brown Brothers Harriman Co.

      JPY      88,737      USD      998      03/17/10      15   

Brown Brothers Harriman Co.

      JPY      125,035      USD      1,433      03/17/10      47   

Brown Brothers Harriman Co.

      JPY      250,000      USD      2,690      03/17/10      (80 ) 

Brown Brothers Harriman Co.

      JPY      356,169      USD      3,887      03/17/10      (60 ) 

Brown Brothers Harriman Co.

      JPY      556,571      USD      6,261      03/17/10      94   

Brown Brothers Harriman Co.

      JPY      1,310,941      USD      14,231      03/17/10      (295 ) 

Brown Brothers Harriman Co.

      NOK      8,369      USD      1,413      02/03/10      —   

Brown Brothers Harriman Co.

      NOK      20,707      USD      3,531      03/17/10      42   

Citibank

      USD      199      JPY      17,779      02/01/10      (2 ) 

Citibank

      USD      268      JPY      23,931      02/01/10      (3 ) 

Citibank

      USD      478      JPY      42,744      02/01/10      (5 ) 

Citibank

      USD      2,105      JPY      188,135      02/01/10      (21 ) 

Citibank

      AUD      490      USD      439      02/01/10      6   

Citibank

      JPY      11,601      USD      130      02/01/10      1   

Credit Suisse First Boston

      USD      6,546      AUD      7,280      03/17/10      (134 ) 

Credit Suisse First Boston

      USD      3,181      AUD      3,538      03/17/10      (65 ) 

Credit Suisse First Boston

      USD      1,031      CHF      1,057      03/17/10      (35 ) 

Credit Suisse First Boston

      USD      189      EUR      136      02/02/10      (1 ) 

Credit Suisse First Boston

      USD      286      EUR      204      02/02/10      (2 ) 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

44   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount
Sold		      Amount
Bought		      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  

Credit Suisse First Boston

      USD      8,004      GBP      4,944      03/17/10      (103 ) 

Credit Suisse First Boston

      USD      245      HKD      1,899      03/17/10      (1 ) 

Credit Suisse First Boston

      USD      379      JPY      33,278      03/17/10      (11 ) 

Credit Suisse First Boston

      USD      8,475      JPY      743,667      03/17/10      (235 ) 

Credit Suisse First Boston

      USD      6,678      NOK      38,675      03/17/10      (161 ) 

Credit Suisse First Boston

      USD      35      SGD      49      03/17/10      —   

Credit Suisse First Boston

      CHF      267      USD      254      02/02/10      2   

Credit Suisse First Boston

      DKK      1,651      USD      326      03/17/10      19   

Credit Suisse First Boston

      GBP      1,037      USD      1,678      03/17/10      22   

Credit Suisse First Boston

      SEK      12,028      USD      1,692      03/17/10      64   

Deutsche Bank

      USD      6,549      AUD      7,280      03/17/10      (138 ) 

Deutsche Bank

      USD      3,183      AUD      3,538      03/17/10      (67 ) 

Deutsche Bank

      USD      1,032      CHF      1,057      03/17/10      (35 ) 

Deutsche Bank

      USD      181      DKK      962      02/01/10      (2 ) 

Deutsche Bank

      USD      16,888      EUR      11,488      03/17/10      (962 ) 

Deutsche Bank

      USD      1,884      GBP      1,165      02/01/10      (21 ) 

Deutsche Bank

      USD      8,000      GBP      4,944      03/17/10      (99 ) 

Deutsche Bank

      USD      245      HKD      1,899      03/17/10      (1 ) 

Deutsche Bank

      USD      379      JPY      33,278      03/17/10      (11 ) 

Deutsche Bank

      USD      8,480      JPY      743,667      03/17/10      (240 ) 

Deutsche Bank

      USD      6,689      NOK      38,675      03/17/10      (173 ) 

Deutsche Bank

      USD      35      SGD      49      03/17/10      —   

Deutsche Bank

      CHF      68      USD      65      02/01/10      1   

Deutsche Bank

      DKK      1,651      USD      327      03/17/10      19   

Deutsche Bank

      EUR      3,175      USD      4,668      03/17/10      266   

Deutsche Bank

      GBP      47      USD      76      02/01/10      1   

Deutsche Bank

      GBP      149      USD      241      02/01/10      3   

Deutsche Bank

      GBP      1,037      USD      1,678      03/17/10      21   

Deutsche Bank

      NOK      4,712      USD      804      02/01/10      8   

Deutsche Bank

      NOK      15,331      USD      2,714      03/17/10      131   

Deutsche Bank

      SEK      12,028      USD      1,695      03/17/10      67   

HSBC

      USD      6,547      AUD      7,280      03/17/10      (136 ) 

HSBC

      USD      3,182      AUD      3,538      03/17/10      (66 ) 

HSBC

      USD      1,032      CHF      1,057      03/17/10      (35 ) 

HSBC

      USD      27      DKK      142      03/17/10      —   

HSBC

      USD      16,902      EUR      11,488      03/17/10      (975 ) 

HSBC

      USD      7,999      GBP      4,944      03/17/10      (99 ) 

HSBC

      USD      13      HKD      99      03/17/10      —   

HSBC

      USD      245      HKD      1,899      03/17/10      (1 ) 

HSBC

      USD      379      JPY      33,278      03/17/10      (10 ) 

HSBC

      USD      8,470      JPY      743,667      03/17/10      (230 ) 

HSBC

      USD      6,693      NOK      38,675      03/17/10      (176 ) 

HSBC

      USD      35      SGD      49      03/17/10      —   

HSBC

      DKK      316      USD      61      03/17/10      2   

HSBC

      DKK      1,651      USD      327      03/17/10      19   

HSBC

      EUR      3,000      USD      4,422      03/17/10      263   

HSBC

      EUR      3,175      USD      4,671      03/17/10      270   

HSBC

      GBP      1,037      USD      1,678      03/17/10      21   

HSBC

      GBP      1,500      USD      2,431      03/17/10      34   

HSBC

      HKD      1,785      USD      230      03/17/10      —   

HSBC

      JPY      250,000      USD      2,845      03/17/10      75   

HSBC

      SEK      12,028      USD      1,694      03/17/10      66   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell International Developed Markets Fund   45

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount
Sold		      Amount
Bought		      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  

HSBC

      SGD      134      USD      96      03/17/10      —   

JP Morgan

      USD      6,543      AUD      7,280      03/17/10      (132 ) 

JP Morgan

      USD      3,180      AUD      3,538      03/17/10      (64 ) 

JP Morgan

      USD      1,031      CHF      1,057      03/17/10      (34 ) 

JP Morgan

      USD      3,135      DKK      16,710      02/01/10      (23 ) 

JP Morgan

      USD      132      EUR      89      03/17/10      (9 ) 

JP Morgan

      USD      16,906      EUR      11,488      03/17/10      (979 ) 

JP Morgan

      USD      277      EUR      199      02/01/10      (2 ) 

JP Morgan

      USD      319      EUR      229      02/02/10      (2 ) 

JP Morgan

      USD      637      EUR      456      02/02/10      (5 ) 

JP Morgan

      USD      202      EUR      145      02/03/10      —   

JP Morgan

      USD      8,002      GBP      4,944      03/17/10      (102 ) 

JP Morgan

      USD      245      HKD      1,899      03/17/10      (1 ) 

JP Morgan

      USD      1,344      HKD      10,440      02/02/10      1   

JP Morgan

      USD      279      HKD      2,166      02/01/10      —   

JP Morgan

      USD      379      JPY      33,278      03/17/10      (10 ) 

JP Morgan

      USD      8,473      JPY      743,667      03/17/10      (233 ) 

JP Morgan

      USD      6,684      NOK      38,675      03/17/10      (168 ) 

JP Morgan

      USD      35      SGD      49      03/17/10      —   

JP Morgan

      DKK      1,651      USD      326      03/17/10      19   

JP Morgan

      EUR      3,175      USD      4,672      03/17/10      271   

JP Morgan

      GBP      241      USD      385      03/17/10      —   

JP Morgan

      GBP      1,037      USD      1,678      03/17/10      21   

JP Morgan

      SEK      12,028      USD      1,692      03/17/10      64   

Mellon Bank

      USD      6,548      AUD      7,280      03/17/10      (137 ) 

Mellon Bank

      USD      3,182      AUD      3,538      03/17/10      (67 ) 

Mellon Bank

      USD      1,032      CHF      1,057      03/17/10      (35 ) 

Mellon Bank

      USD      17      EUR      12      03/17/10      —   

Mellon Bank

      USD      16,905      EUR      11,488      03/17/10      (978 ) 

Mellon Bank

      USD      7,999      GBP      4,944      03/17/10      (98 ) 

Mellon Bank

      USD      245      HKD      1,899      03/17/10      (1 ) 

Mellon Bank

      USD      379      JPY      33,278      03/17/10      (11 ) 

Mellon Bank

      USD      8,475      JPY      743,667      03/17/10      (235 ) 

Mellon Bank

      USD      6,686      NOK      38,675      03/17/10      (170 ) 

Mellon Bank

      USD      35      SGD      49      03/17/10      —   

Mellon Bank

      DKK      1,651      USD      327      03/17/10      19   

Mellon Bank

      EUR      3,175      USD      4,672      03/17/10      270   

Mellon Bank

      GBP      1,037      USD      1,677      03/17/10      21   

Mellon Bank

      SEK      12,028      USD      1,694      03/17/10      66   

Morgan Stanley

      USD      438      AUD      495      02/01/10      —   

Morgan Stanley

      USD      11      HKD      85      02/01/10      —   

Morgan Stanley

      USD      1,243      JPY      110,905      02/01/10      (14 ) 

Morgan Stanley

      EUR      735      USD      1,042      02/01/10      23   

Morgan Stanley

      GBP      183      USD      304      02/01/10      11   

Royal Bank of Canada

      USD      13      DKK      66      03/17/10      —   

Royal Bank of Canada

      USD      5,611      EUR      4,000      03/17/10      (66 ) 

Royal Bank of Canada

      USD      81      HKD      630      03/17/10      —   

Royal Bank of Canada

      USD      28      SGD      39      03/17/10      —   

Royal Bank of Scotland

      USD      3,287      AUD      3,647      03/17/10      (76 ) 

Royal Bank of Scotland

      USD      883      AUD      1,000      03/17/10      (2 ) 

Royal Bank of Scotland

      USD      925      AUD      1,000      03/17/10      (44 ) 

Royal Bank of Scotland

      USD      914      AUD      1,000      03/17/10      (34 ) 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

46   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount
Sold		      Amount
Bought		      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  

Royal Bank of Scotland

      USD      37      DKK      190      03/17/10      (2 ) 

Royal Bank of Scotland

      USD      269      EUR      192      02/02/10      (2 ) 

Royal Bank of Scotland

      USD      231      EUR      165      02/01/10      (2 ) 

Royal Bank of Scotland

      USD      136      EUR      97      02/01/10      (1 ) 

Royal Bank of Scotland

      USD      37      EUR      25      03/17/10      (3 ) 

Royal Bank of Scotland

      USD      2,007      EUR      1,400      03/17/10      (66 ) 

Royal Bank of Scotland

      USD      2,899      EUR      2,000      03/17/10      (126 ) 

Royal Bank of Scotland

      USD      56      GBP      34      03/17/10      (2 ) 

Royal Bank of Scotland

      USD      968      GBP      600      03/17/10      (9 ) 

Royal Bank of Scotland

      USD      1,616      GBP      1,000      03/17/10      (18 ) 

Royal Bank of Scotland

      USD      1,617      GBP      1,000      03/17/10      (19 ) 

Royal Bank of Scotland

      USD      74      HKD      576      03/17/10      —   

Royal Bank of Scotland

      USD      133      HKD      1,028      03/17/10      —   

Royal Bank of Scotland

      USD      1,094      JPY      96,962      03/17/10      (20 ) 

Royal Bank of Scotland

      USD      2,214      JPY      200,000      03/17/10      2   

Royal Bank of Scotland

      USD      1,101      JPY      100,000      03/17/10      7   

Royal Bank of Scotland

      USD      2      SGD      3      03/17/10      —   

Royal Bank of Scotland

      USD      157      SGD      219      03/17/10      (1 ) 

Royal Bank of Scotland

      USD      17      SGD      24      03/17/10      —   

Royal Bank of Scotland

      USD      72      SGD      100      03/17/10      (1 ) 

Royal Bank of Scotland

      AUD      3,886      USD      3,564      03/17/10      141   

Royal Bank of Scotland

      DKK      967      USD      189      03/17/10      9   

Royal Bank of Scotland

      DKK      1,279      USD      253      03/17/10      15   

Royal Bank of Scotland

      EUR      1,000      USD      1,435      03/17/10      48   

Royal Bank of Scotland

      GBP      1,000      USD      1,593      03/17/10      (5 ) 

Royal Bank of Scotland

      HKD      807      USD      104      03/17/10      —   

Royal Bank of Scotland

      JPY      100,000      USD      1,091      03/17/10      (17 ) 

State Street Bank and Trust Company

      USD      707      AUD      772      03/17/10      (27 ) 

State Street Bank and Trust Company

      USD      54      BRL      102      02/01/10      —   

State Street Bank and Trust Company

      USD      1      BRL      2      02/01/10      —   

State Street Bank and Trust Company

      USD      45      DKK      226      03/17/10      (3 ) 

State Street Bank and Trust Company

      USD      85      DKK      451      02/02/10      (1 ) 

State Street Bank and Trust Company

      USD      94      EUR      64      03/17/10      (5 ) 

State Street Bank and Trust Company

      USD      1,674      EUR      1,198      02/02/10      (13 ) 

State Street Bank and Trust Company

      USD      106      EUR      76      02/01/10      (1 ) 

State Street Bank and Trust Company

      USD      6,798      GBP      4,243      03/17/10      (18 ) 

State Street Bank and Trust Company

      USD      1,068      GBP      663      02/02/10      (9 ) 

State Street Bank and Trust Company

      USD      1,360      JPY      123,402      02/03/10      7   

State Street Bank and Trust Company

      USD      123      JPY      11,091      02/02/10      —   

State Street Bank and Trust Company

      USD      169      JPY      15,220      02/02/10      —   

State Street Bank and Trust Company

      USD      86      JPY      7,742      02/02/10      —   

State Street Bank and Trust Company

      USD      71      JPY      6,392      02/02/10      —   

State Street Bank and Trust Company

      USD      37      JPY      3,366      02/02/10      —   

State Street Bank and Trust Company

      USD      185      JPY      16,654      02/02/10      —   

State Street Bank and Trust Company

      USD      165      JPY      15,017      02/03/10      1   

State Street Bank and Trust Company

      USD      156      JPY      14,148      02/03/10      1   

State Street Bank and Trust Company

      USD      54      JPY      4,936      02/03/10      —   

State Street Bank and Trust Company

      USD      80      JPY      7,239      02/03/10      —   

State Street Bank and Trust Company

      USD      197      JPY      17,840      02/03/10      1   

State Street Bank and Trust Company

      USD      515      JPY      46,400      02/01/10      (1 ) 

State Street Bank and Trust Company

      USD      149      KRW      171,886      02/01/10      (1 ) 

State Street Bank and Trust Company

      USD      290      SGD      400      03/17/10      (5 ) 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell International Developed Markets Fund   47

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount
Sold		      Amount
Bought		      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  

State Street Bank and Trust Company

      AUD      27      USD      25      02/02/10      —   

State Street Bank and Trust Company

      AUD      41      USD      37      02/02/10      1   

State Street Bank and Trust Company

      AUD      197      USD      177      02/02/10      3   

State Street Bank and Trust Company

      AUD      1,186      USD      1,069      02/02/10      20   

State Street Bank and Trust Company

      AUD      1,284      USD      1,157      02/02/10      21   

State Street Bank and Trust Company

      AUD      1,769      USD      1,580      02/02/10      15   

State Street Bank and Trust Company

      AUD      1,000      USD      869      03/17/10      (12 ) 

State Street Bank and Trust Company

      AUD      1,500      USD      1,348      03/17/10      27   

State Street Bank and Trust Company

      CAD      43      USD      41      02/01/10      —   

State Street Bank and Trust Company

      CHF      29      USD      27      02/02/10      —   

State Street Bank and Trust Company

      CHF      172      USD      164      02/02/10      1   

State Street Bank and Trust Company

      CHF      338      USD      321      02/02/10      3   

State Street Bank and Trust Company

      CHF      739      USD      696      02/03/10      (1 ) 

State Street Bank and Trust Company

      EUR      37      USD      52      02/01/10      —   

State Street Bank and Trust Company

      EUR      385      USD      536      02/02/10      3   

State Street Bank and Trust Company

      EUR      2,000      USD      2,946      03/17/10      173   

State Street Bank and Trust Company

      EUR      2,000      USD      2,846      03/17/10      73   

State Street Bank and Trust Company

      EUR      4,865      USD      7,012      03/17/10      267   

State Street Bank and Trust Company

      GBP      36      USD      58      02/02/10      —   

State Street Bank and Trust Company

      GBP      80      USD      129      02/02/10      1   

State Street Bank and Trust Company

      GBP      126      USD      203      02/02/10      2   

State Street Bank and Trust Company

      GBP      131      USD      211      02/02/10      2   

State Street Bank and Trust Company

      GBP      1,000      USD      1,629      03/17/10      31   

State Street Bank and Trust Company

      GBP      1,000      USD      1,593      03/17/10      (5 ) 

State Street Bank and Trust Company

      GBP      1,000      USD      1,596      03/17/10      (2 ) 

State Street Bank and Trust Company

      GBP      1,000      USD      1,614      03/17/10      16   

State Street Bank and Trust Company

      GBP      1,000      USD      1,617      03/17/10      19   

State Street Bank and Trust Company

      HKD      154      USD      20      03/17/10      —   

State Street Bank and Trust Company

      HKD      1,968      USD      254      03/17/10      1   

State Street Bank and Trust Company

      JPY      1,217      USD      14      02/02/10      —   

State Street Bank and Trust Company

      JPY      46,527      USD      516      02/02/10      1   

State Street Bank and Trust Company

      JPY      55,590      USD      619      02/02/10      3   

State Street Bank and Trust Company

      JPY      2,539      USD      28      02/03/10      —   

State Street Bank and Trust Company

      JPY      24,375      USD      269      02/03/10      (1 ) 

State Street Bank and Trust Company

      JPY      25,526      USD      281      02/03/10      (1 ) 

State Street Bank and Trust Company

      JPY      136,156      USD      1,501      02/03/10      (8 ) 

State Street Bank and Trust Company

      JPY      100,000      USD      1,097      03/17/10      (11 ) 

State Street Bank and Trust Company

      JPY      200,000      USD      2,180      03/17/10      (36 ) 

State Street Bank and Trust Company

      JPY      250,000      USD      2,829      03/17/10      59   

State Street Bank and Trust Company

      NOK      1,498      USD      254      02/02/10      1   

State Street Bank and Trust Company

      NOK      20,707      USD      3,530      03/17/10      41   

State Street Bank and Trust Company

      SGD      70      USD      50      03/17/10      1   

UBS

      USD      450      DKK      2,311      03/17/10      (20 ) 

UBS

      USD      24      DKK      126      03/17/10      —   

UBS

      USD      1,071      EUR      762      02/01/10      (14 ) 

UBS

      USD      275      EUR      184      03/17/10      (20 ) 

UBS

      USD      454      EUR      313      03/17/10      (20 ) 

UBS

      USD      110      EUR      78      03/17/10      (2 ) 

UBS

      USD      4,351      EUR      3,000      03/17/10      (192 ) 

UBS

      USD      25      HKD      197      03/17/10      —   

UBS

      USD      3,287      JPY      300,000      03/17/10      37   

UBS

      USD      219      JPY      20,000      03/17/10      2   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

48   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount
Sold		      Amount
Bought		      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  

UBS

      USD      504      SEK      3,469      03/17/10      (35 ) 

UBS

      USD      2,643      SEK      18,659      03/17/10      (117 ) 

UBS

      AUD      1,000      USD      905      03/17/10      24   

UBS

      CHF      1,037      USD      1,028      03/17/10      50   

UBS

      CHF      2,754      USD      2,706      03/17/10      109   

UBS

      EUR      2,000      USD      2,881      03/17/10      109   

UBS

      GBP      339      USD      562      03/17/10      21   

UBS

      JPY      189,193      USD      2,071      03/17/10      (25 ) 

UBS

      JPY      200,000      USD      2,195      03/17/10      (21 ) 

UBS

      SGD      55      USD      39      03/17/10      —   

Westpac Banking Corporation

      USD      6,539      AUD      7,280      03/17/10      (128 ) 

Westpac Banking Corporation

      USD      1,644      AUD      1,824      03/17/10      (38 ) 

Westpac Banking Corporation

      USD      3,178      AUD      3,538      03/17/10      (63 ) 

Westpac Banking Corporation

      USD      1,030      CHF      1,057      03/17/10      (34 ) 

Westpac Banking Corporation

      USD      16,894      EUR      11,488      03/17/10      (967 ) 

Westpac Banking Corporation

      USD      4,353      EUR      3,000      03/17/10      (194 ) 

Westpac Banking Corporation

      USD      8,005      GBP      4,944      03/17/10      (104 ) 

Westpac Banking Corporation

      USD      1,622      GBP      1,000      03/17/10      (24 ) 

Westpac Banking Corporation

      USD      245      HKD      1,899      03/17/10      (1 ) 

Westpac Banking Corporation

      USD      379      JPY      33,278      03/17/10      (10 ) 

Westpac Banking Corporation

      USD      8,473      JPY      743,667      03/17/10      (234 ) 

Westpac Banking Corporation

      USD      6,671      NOK      38,675      03/17/10      (155 ) 

Westpac Banking Corporation

      USD      35      SGD      49      03/17/10      —   

Westpac Banking Corporation

      DKK      1,651      USD      326      03/17/10      19   

Westpac Banking Corporation

      EUR      2,000      USD      2,860      03/17/10      87   

Westpac Banking Corporation

      EUR      3,175      USD      4,669      03/17/10      267   

Westpac Banking Corporation

      GBP      1,037      USD      1,679      03/17/10      22   

Westpac Banking Corporation

      JPY      200,000      USD      2,159      03/17/10      (57 ) 

Westpac Banking Corporation

      SEK      12,028      USD      1,690      03/17/10      62   
                                 

Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts

                     (8,431 ) 
                                 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell International Developed Markets Fund   49

Table of Contents

Russell Investment Company

Russell International Developed Markets Fund

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

Amounts in thousands

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
               

Common Stocks

                

Australia

      $ 5,126       $ 161,318       $ 21      $ 166,465   

Austria

        —         3,029         —        3,029   

Belgium

        —         39,501         —        39,501   

Bermuda

        15,963         39,637         —        55,600   

Brazil

        76,907         —         —        76,907   

Canada

        103,758         —         —        103,758   

Cayman Islands

        5,770         10,529         —        16,299   

China

        10,300         28,154         —        38,454   

Czech Republic

        —         4,033         —        4,033   

Denmark

        —         48,242         —        48,242   

Finland

        —         38,666         —        38,666   

France

        1,031         445,610         —        446,641   

Germany

        —         298,364         —        298,364   

Guernsey

        5,758         —         —        5,758   

Hong Kong

        —         56,684         —        56,684   

India

        27,328         10,339         —        37,667   

Indonesia

        —         6,222         —        6,222   

Ireland

        20,816         4,548         —        25,364   

Israel

        21,767         3,930         —        25,697   

Italy

        —         82,094         —        82,094   

Japan

        1,367         632,261         —        633,628   

Kazakhstan

        2,112         —         —        2,112   

Luxembourg

        3,485         6,763         —        10,248   

Malaysia

        —         2,720         —        2,720   

Mauritius

        —         1,592         —        1,592   

Mexico

        5,660         —         —        5,660   

Netherlands

        5,032         185,102         —        190,134   

Netherlands Antilles

        —         330         —        330   

New Zealand

        —         7,289         —        7,289   

Norway

        —         18,369         —        18,369   

Puerto Rico

        2,586         —         —        2,586   

Russia

        10,117         18,013         —        28,130   

Singapore

        —         56,021         —        56,021   

South Africa

        —         7,319         —        7,319   

South Korea

        590         42,944         —        43,534   

Spain

        —         144,205         —        144,205   

Sweden

        —         17,576         —        17,576   

Switzerland

        36,158         310,785         —        346,943   

Taiwan

        5,978         17,734         —        23,712   

Turkey

        —         7,514         —        7,514   

United Kingdom

        32,880         721,777         —        754,657   

United States

        6,874         11,782         —        18,656   

Preferred Stocks

        10,873         3,668         —        14,541   

Warrants & Rights

        7,135         —         6,883        14,018   

Short-Term Investments

        —         257,823         —        257,823   

Other Securities

        —         363,253         —        363,253   
                                     

Total Investments

        425,371         4,115,740         6,904        4,548,015   
                                     

Other Financial Instruments

                

Futures Contracts

        (10,655 )       —         —        (10,655 ) 

Foreign Currency Exchange Contracts

        (28 )       (8,403 )       —        (8,431 ) 
                                     

Total Other Financial Instruments*

        (10,683 )       (8,403 )       —        (19,086 ) 
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

Invetments in which significant unobservable inputs (Level 3) used in determining a value for the period ending January 31, 2010 were less than 1% of net assets.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

50   Russell International Developed Markets Fund

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 94.3%        
Australia - 0.2%        

Alumina, Ltd. - ADR (Æ)

    208,600      1,141

Minara Resources, Ltd. (Æ)

    695,749      422

Mineral Deposits, Ltd. (Æ)

    361,300      283
         
        1,846
         
Brazil - 1.8%        

BM&F Bovespa SA

    257,166      1,737

Centrais Eletricas Brasileiras SA - ADR (Æ)

    208,350      3,798

Cia de Saneamento Basico do Estado de Sao Paulo - ADR (Æ)

    27,884      949

Petroleo Brasileiro SA - ADR

    165,300      5,964

Tam SA - ADR (Æ)(Ñ)

    93,100      1,698

Vale SA Class B (Ñ)

    174,300      3,936
         
        18,082
         
Canada - 2.7%        

Barrick Gold Corp.

    135,530      4,719

Cameco Corp.

    103,670      2,806

Canadian National Railway Co.

    154,130      7,696

Cenovus Energy, Inc.

    41,800      968

Eastern Platinum, Ltd. (Æ)

    1,365,125      1,480

EnCana Corp.

    41,800      1,279

Gabriel Resources, Ltd. (Æ)

    1,283,978      4,441

Teck Resources, Ltd. Class B (Æ)

    61,700      2,025

Westjet Airlines, Ltd. (Æ)

    31,200      368
   104,177      1,228
         
        27,010
         
Cayman Islands - 0.8%        

Baidu, Inc. - ADR (Æ)

    8,600      3,541

Endeavor Financial Corp. (Æ)(Å)

    417,425      687

Hutchison Telecommunications, Ltd.

    6,192,100      1,034

NagaCorp, Ltd.

    7,370,000      775

Tencent Holdings, Ltd.

    66,800      1,239
         
        7,276
         
China - 0.6%        

China Construction Bank Corp. Class H

    3,251,900      2,482

China Longyuan Power Group Corp. (Æ)

    1,793,000      2,217

PetroChina Co., Ltd. - ADR

    9,325      1,039
         
        5,738
         
Finland - 0.1%        

UPM-Kymmene OYJ

    119,000      1,305
         
France - 4.7%        

Areva SA

    1,247      574

Cie Generale des Establishments Michelin Class B

    51,078      3,971

Danone

    51,987      2,978

Electronic Defrance SA

    19,885      1,072

Legrand SA

    297,979      8,596
     Principal
Amount ($)
or Shares		      Market
Value
$

LVMH Moet Hennessy Louis Vuitton SA

    92,011      10,064

Pernod-Ricard SA

    83,840      6,764

Publicis Groupe SA

    128,400      5,236

Renault SA (Æ)

    86,900      4,101

Thales SA

    74,710      3,378
         
        46,734
         
Germany - 4.5%        

Allianz SE

    55,800      6,177

Daimler AG

    91,300      4,207

Deutsche Boerse AG

    39,100      2,577

Deutsche Telekom AG - ADR

    95,707      1,232

E.ON AG

    119,017      4,370

HeidelbergCement AG

    71,205      4,290

Linde AG

    92,579      10,105

Merck KGaA

    61,004      5,440

SAP AG

    131,300      5,993
         
        44,391
         
India - 1.4%        

Bajaj Finserv, Ltd.

    148,540      1,016

Container Corp. of India

    46,947      1,240

GMR Infrastructure, Ltd. (Æ)

    3,002,026      3,834

Kotak Mahindra Bank, Ltd.

    99,600      1,678

Reliance Industries, Ltd.

    140,800      3,155

Tata Motors, Ltd. - ADR

    54,580      798

United Spirits, Ltd.

    59,855      1,590
         
        13,311
         
Ireland - 1.6%        

Accenture PLC Class A

    290,100      11,891

Elan Corp. PLC - ADR (Æ)

    204,000      1,520

Governor & Co. of the Bank of Ireland (The) (Æ)

    1,084,600      1,956
         
        15,367
         
Israel - 0.8%        

Teva Pharmaceutical Industries, Ltd. - ADR

    142,800      8,100
         
Italy - 1.4%        

ERG SpA

    192,600      2,607

Intesa Sanpaolo SpA (Æ)

    2,584,026      9,819

Telecom Italia SpA

    1,216,200      1,413
         
        13,839
         
Japan - 6.8%        

77 Bank, Ltd. (The)

    132,000      706

Aeon Mall Co., Ltd.

    158,900      2,906

Canon, Inc.

    100,300      3,925

Daiwa Securities Group, Inc.

    1,493,200      7,445

Fields Corp.

    320      400

Futaba Corp.

    47,300      814

Hakuhodo DY Holdings, Inc.

    4,850      238

JS Group Corp.

    34,600      610

Kao Corp.

    107,000      2,586

 

Russell Global Equity Fund   51

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Kirin Holdings Co., Ltd.

    60,000      916

Mitsubishi Corp.

    146,300      3,517

Mitsui & Co., Ltd.

    107,700      1,574

Nippon Oil Corp.

    183,000      853

Nippon Telegraph & Telephone Corp.

    165,000      6,969

Nissin Foods Holdings Co., Ltd.

    19,600      649

Nomura Holdings, Inc.

    467,900      3,502

Obayashi Corp.

    199,000      703

Panasonic Corp.

    309,800      4,874

Rohm Co., Ltd. (Ñ)

    78,100      5,237

Sekisui House, Ltd.

    301,000      2,854

Seven & I Holdings Co., Ltd.

    60,400      1,322

Sony Corp.

    45,000      1,498

Sumitomo Mitsui Financial Group, Inc.

    35,500      1,147

Sumitomo Osaka Cement Co., Ltd.

    821,000      1,195

Sumitomo Trust & Banking Co., Ltd. (The)

    415,000      2,312

Takeda Pharmaceutical Co., Ltd.

    38,000      1,670

Toppan Printing Co., Ltd.

    144,000      1,253

Toyota Motor Corp.

    134,000      5,139

TV Asahi Corp.

    411      671
         
        67,485
         
Luxembourg - 0.3%        

Stolt-Nielsen SA

    181,600      2,693
         
Mexico - 1.7%        

America Movil SAB de CV Series L

    159,200      6,949

Fomento Economico Mexicano SAB de CV - ADR

    92,400      3,895

Grupo Financiero Banorte SAB de CV Class O (Æ)

    765,100      2,516

Grupo Televisa SA - ADR

    180,700      3,531
         
        16,891
         
Netherlands - 2.5%        

Akzo Nobel NV

    22,200      1,326

ASML Holding NV

    88,700      2,793

Heineken NV

    234,865      11,543

TNT NV

    323,242      9,238
         
        24,900
         
Netherlands Antilles - 0.3%        

Schlumberger, Ltd.

    48,500      3,078
         
Norway - 0.5%        

Marine Harvest ASA (Æ)

    3,926,730      3,507

StatoilHydro ASA - ADR

    64,500      1,442
         
        4,949
         
Panama - 0.7%        

Carnival Corp.

    190,200      6,339
         
Papua New Guinea - 0.4%        

Lihir Gold, Ltd.

    1,730,700      4,193
         
Russia - 0.6%        

Gazprom OAO - ADR

    250,300      6,105
         
     Principal
Amount ($)
or Shares		      Market
Value
$
South Africa - 0.4%        

AngloGold Ashanti, Ltd. - ADR

    32,425      1,157

Gold Fields, Ltd.

    248,459      2,854
         
        4,011
         
South Korea - 0.7%        

Korea Electric Power Corp. - ADR

    158,300      2,573

KT Corp. - ADR

    33,260      713

Samsung Electronics Co., Ltd.

    5,540      3,733
         
        7,019
         
Spain - 0.5%        

Iberdrola Renovables SA

    976,287      4,335
         
Sweden - 0.0%        

Assa Abloy AB Class B

    5,189      89
         
Switzerland - 9.2%        

Adecco SA

    89,700      4,848

Cie Financiere Richemont SA

    429,528      14,398

Credit Suisse Group AG

    185,500      8,041

GAM Holding, Ltd.

    32,100      370

Givaudan SA

    13,817      11,254

Julius Baer Group, Ltd.

    170,100      5,588

Nestle SA

    305,839      14,472

Novartis AG

    150,500      8,061

Roche Holding AG

    81,849      13,746

Transocean, Ltd. (Æ)

    58,100      4,923

UBS AG (Æ)

    299,900      3,896
   88,530      1,152
         
        90,749
         
Thailand - 0.1%        

Bangkok Bank PCL

    203,400      687

Krung Thai Bank PCL

    2,004,600      580
         
        1,267
         
Turkey - 0.1%        

Turkcell Iletisim Hizmet AS - ADR

    57,475      1,045
         
United Kingdom - 8.5%        

AstraZeneca PLC - ADR

    16,100      748

BP PLC

    14,149      132

BP PLC - ADR

    23,642      1,327

British Sky Broadcasting Group PLC

    336,100      2,845

Centrica PLC

    1,353,200      5,809

Diageo PLC

    514,188      8,656

Experian PLC

    256,100      2,436

GlaxoSmithKline PLC

    167,600      3,263

Mondi PLC

    275,017      1,564

Reckitt Benckiser Group PLC

    167,227      8,692

Reed Elsevier PLC

    507,400      4,044

Rio Tinto PLC

    106,691      5,119

Rolls-Royce Group PLC (Æ)

    1,378,578      10,549

Royal Dutch Shell PLC Class B

    209,164      5,585

 

52   Russell Global Equity Fund

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Standard Chartered PLC

    193,200      4,417

Tesco PLC

    448,678      3,035

Unilever PLC

    221,213      6,747

Vodafone Group PLC (Ñ)

    1,678,953      3,607

Vodafone Group PLC - ADR

    63,800      1,369

WPP PLC

    458,524      4,232
         
        84,176
         
United States - 40.4%        

3M Co.

    104,160      8,384

Aetna, Inc.

    52,765      1,581

AGCO Corp. (Æ)

    69,825      2,158

Alcoa, Inc.

    114,275      1,455

Amazon.com, Inc. (Æ)

    44,600      5,593

Ameren Corp.

    51,125      1,306

Apple, Inc. (Æ)

    75,270      14,461

Applied Materials, Inc.

    309,700      3,772

Arch Coal, Inc. (Ñ)

    68,400      1,441

Autodesk, Inc. (Æ)(Ñ)

    97,300      2,315

AutoZone, Inc. (Æ)(Ñ)

    15,600      2,418

Bank of New York Mellon Corp. (The)

    570,870      16,607

Bed Bath & Beyond, Inc. (Æ)

    79,900      3,092

Best Buy Co., Inc.

    86,500      3,170

BJ Services Co.

    74,700      1,544

Boeing Co. (The)

    69,300      4,200

Cameron International Corp. (Æ)

    76,100      2,866

Caterpillar, Inc. (Ñ)

    100,300      5,240

CBS Corp. Class B

    313,400      4,052

Celgene Corp. (Æ)

    25,400      1,442

Charles Schwab Corp. (The)

    170,243      3,114

Cisco Systems, Inc. (Æ)

    339,430      7,627

ConocoPhillips

    31,045      1,490

Consol Energy, Inc.

    14,375      670

Dentsply International, Inc. (Ñ)

    165,300      5,543

Discover Financial Services

    176,800      2,419

eBay, Inc. (Æ)

    112,035      2,579

Edwards Lifesciences Corp. (Æ)

    31,200      2,796

EOG Resources, Inc.

    33,200      3,002

FedEx Corp.

    70,100      5,492

Fifth Third Bancorp

    388,700      4,835

Franklin Resources, Inc.

    60,300      5,972

Freeport-McMoRan Copper & Gold, Inc. Class B

    37,100      2,474

General Dynamics Corp.

    48,700      3,256

Gilead Sciences, Inc. (Æ)

    93,700      4,523

Goldman Sachs Group, Inc. (The)

    39,100      5,815

Google, Inc. Class A (Æ)

    17,600      9,318

Hewlett-Packard Co.

    134,300      6,322

Home Depot, Inc.

    77,700      2,176

Illinois Tool Works, Inc.

    71,200      3,104

Illumina, Inc. (Æ)

    5,900      216

Intel Corp.

    651,900      12,647

Janus Capital Group, Inc. (Ñ)

    96,800      1,182

JPMorgan Chase & Co.

    523,221      20,374

Juniper Networks, Inc. (Æ)

    313,900      7,794

Keycorp (Ñ)

    144,000      1,034
     Principal
Amount ($)
or Shares		      Market
Value
$

Kroger Co. (The)

    113,500      2,432

Las Vegas Sands Corp. (Æ)

    144,100      2,234

Loews Corp.

    27,375      979

Lowe’s Cos., Inc.

    221,500      4,795

Mastercard, Inc. Class A (Ñ)

    23,200      5,798

Medtronic, Inc.

    198,320      8,506

Microsoft Corp.

    197,870      5,576

Monsanto Co.

    39,100      2,967

Morgan Stanley (Ñ)

    132,700      3,554

Murphy Oil Corp.

    72,900      3,724

National Oilwell Varco, Inc.

    99,900      4,086

Newmont Mining Corp.

    104,725      4,489

Nike, Inc. Class B (Ñ)

    70,200      4,475

Omnicom Group, Inc.

    249,430      8,805

Oracle Corp.

    422,390      9,740

Peabody Energy Corp.

    46,975      1,979

PepsiCo, Inc.

    97,900      5,837

Pfizer, Inc.

    459,825      8,580

Polo Ralph Lauren Corp. Class A

    76,600      6,281

Praxair, Inc.

    98,740      7,437

Procter & Gamble Co. (The)

    127,400      7,841

QUALCOMM, Inc.

    118,700      4,652

Red Hat, Inc. (Æ)(Ñ)

    61,100      1,663

Smithfield Foods, Inc. (Æ)

    188,600      2,840

Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö)

    126,200      4,205

TD Ameritrade Holding Corp. (Æ)

    125,000      2,220

Tech Data Corp. (Æ)

    23,395      953

Tesoro Corp.

    84,580      1,057

Tyson Foods, Inc. Class A

    286,285      3,956

Union Pacific Corp.

    93,155      5,636

Wal-Mart Stores, Inc.

    220,425      11,777

Walgreen Co.

    207,400      7,477

Walt Disney Co. (The)

    327,090      9,666

Waters Corp. (Æ)

    159,340      9,079

WellPoint, Inc. (Æ)

    78,100      4,977

Wells Fargo & Co.

    106,796      3,036

Yum! Brands, Inc. (Ñ)

    85,900      2,939
         
        399,119
         

Total Common Stocks

(cost $852,945)

         931,442
         
Preferred Stocks - 1.1%        
Brazil - 0.2%        

Tim Participacoes SA

    483,150      1,269
         
United States - 0.9%        

Bank of America Corp.

    595,600      8,993
         

Total Preferred Stocks

(cost $9,936)

         10,262
         

 

Russell Global Equity Fund   53

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$		  
       
Warrants & Rights - 0.0%        
Cayman Islands - 0.0%        

Endeavor Financial Corp. (Æ)(Å) 2014 Warrants

    251,905      158   
           

Total Warrants & Rights

(cost $696)

         158   
           
Short-Term Investments - 4.3%        
United States - 4.3%        

Russell U.S. Cash Management Fund (£)

    42,871,803      42,872   
           

Total Short-Term Investments

(cost $42,872)

         42,872   
           
Other Securities - 8.3%        

Russell U.S. Cash Collateral Fund (×)

    48,331,643      48,332   

State Street Securities Lending Quality Trust (×)

    34,098,979      33,994   
           

Total Other Securities

(cost $82,431)

         82,326   
           

Total Investments - 108.0%

(identified cost $988,880)

         1,067,060   

Other Assets and Liabilities,

Net - (8.0%)

         (79,490 ) 
           
Net Assets - 100.0%         987,570   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

54   Russell Global Equity Fund

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                 
Long Positions                    

EUR STOXX 50 Index (EMU)

    240      EUR   6,655      03/10      (448)

FTSE-100 Index (UK)

    54      GBP   2,780      03/10      (120)

Hang Seng Index (Hong Kong)

    4      HKD   4,041      02/10      (8)

S&P 500 E-Mini Index (CME)

    310      USD   16,591      03/10      (636)

S&P 500 Index (CME)

    20      USD   5,352      03/10      (105)

SPI 200 Index (Australia)

    17      AUD   1,932      03/10      (56)

TOPIX Index (Japan)

    47      JPY   420,415      03/10      (36)

TSE 60 Index (Canada)

    16      CAD   2,070      03/10      (81)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                     (1,490)
                     

 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Global Equity Fund   55

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                   

Bank of America

      USD      333      GBP      205      02/01/10      (5 ) 

Bank of America

      EUR      403      USD      566      02/01/10      8   

Bank of Montreal

      USD      140      EUR      100      03/17/10      (2 ) 

Bank of Montreal

      USD      404      GBP      250      03/17/10      (5 ) 

Barclays Bank PLC

      USD      1,295      EUR      880      03/17/10      (75 ) 

Brown Brothers Harriman Co.

      AUD      100      USD      90      03/17/10      2   

Brown Brothers Harriman Co.

      CAD      100      USD      96      03/17/10      3   

Brown Brothers Harriman Co.

      EUR      200      USD      287      03/17/10      10   

Brown Brothers Harriman Co.

      JPY      15,000      USD      164      03/17/10      (3 ) 

Citibank

      USD      568      EUR      404      02/01/10      (7 ) 

Citibank

      SEK      3,452      USD      471      02/02/10      4   

Citibank

      SEK      950      USD      129      02/02/10      1   

Credit Suisse First Boston

      USD      229      AUD      255      03/17/10      (5 ) 

Credit Suisse First Boston

      USD      279      CAD      294      03/17/10      (4 ) 

Credit Suisse First Boston

      USD      603      GBP      373      03/17/10      (8 ) 

Credit Suisse First Boston

      USD      619      JPY      54,333      03/17/10      (17 ) 

Deutsche Bank

      USD      90      AUD      100      03/17/10      (2 ) 

Deutsche Bank

      USD      229      AUD      255      03/17/10      (5 ) 

Deutsche Bank

      USD      95      CAD      100      03/17/10      (1 ) 

Deutsche Bank

      USD      279      CAD      294      03/17/10      (4 ) 

Deutsche Bank

      USD      848      EUR      600      03/17/10      (16 ) 

Deutsche Bank

      USD      1,294      EUR      880      03/17/10      (74 ) 

Deutsche Bank

      USD      322      GBP      200      03/17/10      (3 ) 

Deutsche Bank

      USD      603      GBP      373      03/17/10      (7 ) 

Deutsche Bank

      USD      444      JPY      40,000      03/17/10      (1 ) 

Deutsche Bank

      USD      620      JPY      54,333      03/17/10      (18 ) 

Deutsche Bank

      EUR      400      USD      564      03/17/10      9   

Deutsche Bank

      GBP      200      USD      323      03/17/10      3   

Deutsche Bank

      JPY      50,000      USD      559      03/17/10      5   

HSBC

      USD      229      AUD      255      03/17/10      (5 ) 

HSBC

      USD      272      AUD      300      03/17/10      (7 ) 

HSBC

      USD      279      CAD      294      03/17/10      (4 ) 

HSBC

      USD      286      CAD      300      03/17/10      (6 ) 

HSBC

      USD      690      CHF      725      02/01/10      (7 ) 

HSBC

      USD      1,295      EUR      880      03/17/10      (75 ) 

HSBC

      USD      1,411      EUR      1,000      03/17/10      (25 ) 

HSBC

      USD      603      GBP      373      03/17/10      (7 ) 

HSBC

      USD      651      GBP      400      03/17/10      (12 ) 

HSBC

      USD      548      JPY      50,000      03/17/10      6   

HSBC

      USD      619      JPY      54,333      03/17/10      (17 ) 

HSBC

      USD      755      JPY      68,505      02/03/10      3   

HSBC

      SEK      1,808      USD      249      02/01/10      4   

HSBC

      JPY      30,000      USD      341      03/17/10      9   

HSBC

      AUD      100      USD      90      03/17/10      2   

HSBC

      CAD      150      USD      142      03/17/10      2   

HSBC

      EUR      500      USD      737      03/17/10      44   

HSBC

      GBP      150      USD      243      03/17/10      3   

JP Morgan

      USD      229      AUD      255      03/17/10      (5 ) 

JP Morgan

      USD      279      CAD      294      03/17/10      (4 ) 

JP Morgan

      USD      1,295      EUR      880      03/17/10      (75 ) 

JP Morgan

      USD      603      GBP      373      03/17/10      (8 ) 

JP Morgan

      USD      619      JPY      54,333      03/17/10      (17 ) 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

56   Russell Global Equity Fund

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                   

JP Morgan

      GBP      200      USD      320      03/17/10      1   

Mellon Bank

      USD      229      AUD      255      03/17/10      (5 ) 

Mellon Bank

      USD      279      CAD      294      03/17/10      (4 ) 

Mellon Bank

      USD      1,295      EUR      880      03/17/10      (75 ) 

Mellon Bank

      USD      603      GBP      373      03/17/10      (7 ) 

Mellon Bank

      USD      619      JPY      54,333      03/17/10      (17 ) 

Morgan Stanley

      USD      38      AUD      43      02/01/10      —   

Morgan Stanley

      USD      31      CAD      33      02/01/10      —   

Morgan Stanley

      USD      1      HKD      6      02/01/10      —   

Morgan Stanley

      USD      108      JPY      9,635      02/01/10      (1 ) 

Morgan Stanley

      EUR      60      USD      86      02/01/10      3   

Morgan Stanley

      GBP      16      USD      27      02/01/10      1   

National Bank of Australia

      EUR      100      USD      145      03/17/10      7   

Royal Bank of Canada

      USD      183      AUD      200      03/17/10      (6 ) 

Royal Bank of Canada

      USD      193      CAD      200      03/17/10      (6 ) 

Royal Bank of Canada

      USD      1,003      EUR      700      03/17/10      (32 ) 

Royal Bank of Canada

      USD      162      GBP      100      03/17/10      (2 ) 

Royal Bank of Canada

      USD      319      GBP      200      03/17/10      1   

Royal Bank of Canada

      USD      322      JPY      30,000      03/17/10      10   

Royal Bank of Scotland

      USD      90      AUD      100      03/17/10      (2 ) 

Royal Bank of Scotland

      USD      94      CAD      100      03/17/10      (1 ) 

Royal Bank of Scotland

      USD      290      EUR      200      03/17/10      (13 ) 

Royal Bank of Scotland

      USD      430      EUR      300      03/17/10      (15 ) 

Royal Bank of Scotland

      USD      439      EUR      300      03/17/10      (23 ) 

Royal Bank of Scotland

      USD      162      GBP      100      03/17/10      (2 ) 

Royal Bank of Scotland

      USD      162      GBP      100      03/17/10      (2 ) 

Royal Bank of Scotland

      USD      110      JPY      10,000      03/17/10      1   

Royal Bank of Scotland

      CHF      665      USD      630      02/03/10      3   

Royal Bank of Scotland

      EUR      150      USD      215      03/17/10      7   

Royal Bank of Scotland

      JPY      20,000      USD      218      03/17/10      (4 ) 

Societe Generale

      USD      95      CAD      100      03/17/10      (2 ) 

State Street Bank and Trust Company

      USD      135      AUD      150      03/17/10      (3 ) 

State Street Bank and Trust Company

      USD      141      CAD      150      03/17/10      (1 ) 

State Street Bank and Trust Company

      USD      430      EUR      300      03/17/10      (15 ) 

State Street Bank and Trust Company

      USD      702      EUR      500      03/17/10      (9 ) 

State Street Bank and Trust Company

      USD      736      EUR      500      03/17/10      (43 ) 

State Street Bank and Trust Company

      USD      160      GBP      100      03/17/10      —   

State Street Bank and Trust Company

      USD      326      GBP      200      03/17/10      (6 ) 

State Street Bank and Trust Company

      USD      105      HKD      819      02/01/10      —   

State Street Bank and Trust Company

      USD      152      HKD      1,183      02/02/10      —   

State Street Bank and Trust Company

      USD      109      JPY      10,000      03/17/10      2   

State Street Bank and Trust Company

      USD      329      JPY      30,000      03/17/10      3   

State Street Bank and Trust Company

      USD      340      JPY      30,000      03/17/10      (7 ) 

State Street Bank and Trust Company

      AUD      200      USD      185      03/17/10      9   

State Street Bank and Trust Company

      CAD      200      USD      195      03/17/10      8   

State Street Bank and Trust Company

      CHF      301      USD      286      02/02/10      2   

State Street Bank and Trust Company

      EUR      100      USD      143      03/17/10      5   

State Street Bank and Trust Company

      EUR      200      USD      286      03/17/10      9   

State Street Bank and Trust Company

      EUR      200      USD      288      03/17/10      11   

State Street Bank and Trust Company

      EUR      400      USD      579      03/17/10      24   

State Street Bank and Trust Company

      GBP      100      USD      161      03/17/10      1   

State Street Bank and Trust Company

      GBP      100      USD      160      03/17/10      —   

State Street Bank and Trust Company

      GBP      200      USD      326      03/17/10      8   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Global Equity Fund   57

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                   

State Street Bank and Trust Company

      JPY      30,000      USD      329      03/17/10      (3 ) 

UBS

      USD      82      EUR      59      02/02/10      (1 ) 

UBS

      EUR      500      USD      720      03/17/10      28   

Westpac Banking Corporation

      USD      229      AUD      255      03/17/10      (4 ) 

Westpac Banking Corporation

      USD      279      CAD      294      03/17/10      (4 ) 

Westpac Banking Corporation

      USD      1,294      EUR      880      03/17/10      (73 ) 

Westpac Banking Corporation

      USD      603      GBP      373      03/17/10      (8 ) 

Westpac Banking Corporation

      USD      619      JPY      54,333      03/17/10      (16 ) 
                                 

Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts

           (686 ) 
                                 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

58   Russell Global Equity Fund

Table of Contents

Russell Investment Company

Russell Global Equity Fund

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

Amounts in thousands

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
               

Common Stocks

                

Australia

      $ 1,141       $ 705       $ —      $ 1,846   

Brazil

        18,082         —         —        18,082   

Canada

        25,781         —         1,229        27,010   

Cayman Islands

        3,540         3,049         687        7,276   

China

        3,256         2,482         —        5,738   

Finland

        —         1,305         —        1,305   

France

        —         46,734         —        46,734   

Germany

        1,232         43,159         —        44,391   

India

        799         12,512         —        13,311   

Ireland

        13,411         1,956         —        15,367   

Israel

        8,100         —         —        8,100   

Italy

        —         13,839         —        13,839   

Japan

        —         67,485         —        67,485   

Luxembourg

        —         2,693         —        2,693   

Mexico

        16,891         —         —        16,891   

Netherlands

           24,900         —        24,900   

Netherlands Antilles

        3,078         —         —        3,078   

Norway

        1,442         3,507         —        4,949   

Panama

        6,339         —         —        6,339   

Papua New Guinea

        —         4,193         —        4,193   

Russia

        —         6,105         —        6,105   

South Africa

        1,157         2,854         —        4,011   

South Korea

        3,285         3,734         —        7,019   

Spain

        —         4,335         —        4,335   

Sweden

        —         89         —        89   

Switzerland

        6,075         84,674         —        90,749   

Thailand

        580         687         —        1,267   

Turkey

        1,045         —         —        1,045   

United Kingdom

        3,444         80,732         —        84,176   

United States

        399,119         —         —        399,119   

Preferred Stocks

        10,262         —         —        10,262   

Warrants & Rights

        —         —         158        158   

Short-Term Investments

        —         42,872         —        42,872   

Other Securities

        —         82,326         —        82,326   
                                     

Total Investments

        528,059         536,927         2,074        1,067,060   
                                     

Other Financial Instruments

                

Futures Contracts

        (1,490 )       —         —        (1,490 ) 

Foreign Currency Exchange Contracts

        —         (686 )       —        (686 ) 
                                     

Total Other Financial Instruments*

        (1,490 )       (686 )       —        (2,176 ) 
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending January 31, 2010 were less than 1% of net assets.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Global Equity Fund   59

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 90.8%        
Austria - 0.2%        

Vienna Insurance Group

    28,800      1,373

Wienerberger AG (Æ)

    61,490      1,142
         
        2,515
         
Bermuda - 1.1%        

C C Land Holdings, Ltd.

    1,693,000      616

Central European Media Enterprises, Ltd. Class A (Æ)(Ñ)

    45,990      1,311

Cnpc Hong Kong, Ltd.

    468,000      578

Cosan, Ltd. (Æ)

    96,700      754

Credicorp, Ltd.

    75,425      5,629

GOME Electrical Appliances Holdings, Ltd. (Æ)

    3,098,680      1,084

Li & Fung, Ltd.

    268,000      1,218

Yue Yuen Industrial Holdings, Ltd.

    881,500      2,734
         
        13,924
         
Brazil - 9.7%        

All America Latina Logistica SA

    102,000      817

Amil Participacoes SA (Æ)

    200,884      1,417

Anhanguera Educacional Participacoes SA (Æ)

    223,015      3,076

Banco Bradesco SA - ADR (Ñ)

    321,800      5,329

Banco do Brasil SA

    655,306      9,769

Banco Santander Brasil SA - ADR

    348,923      4,201

BM&F Bovespa SA

    1,279,729      8,642

Brasil Telecom SA (Æ)

    65,224      701

BRF - Brasil Foods SA (Æ)

    35,209      843

Centrais Eletricas Brasileiras SA (Ñ)

    184,200      3,913

Cia Brasileira de Distribuicao Grupo Pao de Acucar - ADR (Ñ)

    52,352      3,493

Cia de Saneamento Basico do Estado de Sao Paulo (Æ)

    253,240      4,212

Cia de Saneamento Basico do Estado de Sao Paulo - ADR (Æ)(Ñ)

    12,375      421

Cia de Saneamento de Minas Gerais-COPASA (Æ)

    75,500      1,021

Cia Siderurgica Nacional SA (Æ)(Ñ)

    90,004      2,626

Cia Siderurgica Nacional SA - ADR (Ñ)

    88      3

Cielo SA

    117,900      938

Diagnosticos da America SA (Æ)

    19,500      598

Hypermarcas SA (Æ)

    174,000      2,004

Itau Unibanco Holding SA - ADR

    274,014      5,250

JBS SA

    360,900      1,788

Localiza Rent a Car SA (Æ)

    55,000      576

Lojas Renner SA (Ñ)

    145,900      2,785

Marfrig Alimentos SA (Æ)

    119,656      1,428

MMX Mineracao e Metalicos SA (Æ)

    165,000      1,120

MRV Engenharia e Participacoes SA

    158,400      1,021

Multiplan Empreendimentos Imobiliarios SA

    58,000      923

Natura Cosmeticos SA

    190,400      3,428

OGX Petroleo e Gas Participacoes SA

    45,352      404

Petroleo Brasileiro SA

    85,900      1,742
     Principal
Amount ($)
or Shares		      Market
Value
$

Petroleo Brasileiro SA - ADR

    245,500      8,858

Petroleo Brasileiro SA - ADR (Ñ)

    309,540      12,558

Redecard SA

    220,900      3,088

Rossi Residencial SA

    261,000      1,814

Souza Cruz SA

    75,200      2,414

Sul America SA

    54,300      1,412

Tractebel Energia SA (Ñ)

    91,128      978

Usinas Siderurgicas de Minas Gerais SA

    83,000      2,186

Vale SAClass B (Ñ)

    637,840      15,992

Vivo Participacoes SA - ADR (Æ)

    52,800      1,478

Weg SA

    102,000      977
         
        126,244
         
Canada - 0.2%        

First Quantum Minerals, Ltd.

    27,858      2,020
         
Cayman Islands - 3.1%        

Agile Property Holdings, Ltd.

    2,242,000      2,799

Alibaba.com, Ltd. (Ñ)

    1,277,500      2,872

Baidu, Inc. - ADR (Æ)

    4,500      1,853

Belle International Holdings, Ltd.

    2,391,500      2,699

China Dongxiang Group Co.

    431,000      277

Hengan International Group Co., Ltd.

    1,072,000      7,161

Hengdeli Holdings, Ltd. (Æ)

    3,232,000      1,067

Ju Teng International Holdings, Ltd.

    716,000      610

Kingboard Chemical Holdings, Ltd.

    246,500      1,048

Lifestyle International Holdings, Ltd.

    688,500      1,127

Pacific Textile Holdings, Ltd. (Ñ)

    661,000      468

Parkson Retail Group, Ltd.

    1,504,031      2,552

Shimao Property Holdings, Ltd. (Ñ)

    387,500      592

Sina Corp. (Æ)(Ñ)

    35,900      1,298

Tencent Holdings, Ltd.

    530,600      9,844

Tingyi Cayman Islands Holding Corp.

    264,000      571

Uni-President China Holdings, Ltd. (Ñ)

    2,231,000      1,355

Xingda International Holdings, Ltd.

    4,052,000      1,883
         
        40,076
         
Chile - 0.9%        

Banco Santander Chile - ADR

    63,733      3,941

Embotelladora Andina SA - ADR

    53,300      1,044

Empresas La Polar SA

    129,300      725

Enersis SA - ADR (Ñ)

    63,120      1,449

SACI Falabella

    132,487      750

Sociedad Quimica y Minera de Chile
SA - ADR

    92,900      3,380
         
        11,289
         
China - 5.8%        

Angang Steel Co., Ltd. Class H

    542,000      933

Anhui Conch Cement Co., Ltd. Class H (Ñ)

    569,957      3,140

Bank of China, Ltd. (Ñ)

    7,830,000      3,747

Bank of Communications Co., Ltd. Class H

    1,141,000      1,140

China Coal Energy Co.

    1,215,000      1,842

China Communications Construction Co., Ltd. Class H

    2,421,000      2,243

China Construction Bank Corp. Class H

    3,436,000      2,622

 

60   Russell Emerging Markets Fund

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

China Life Insurance Co., Ltd. Class H

    1,172,000      5,183

China Merchants Bank Co., Ltd.

    1,423,647      3,280

China National Building Material Co., Ltd. Class H

    742,000      1,224

China Petroleum & Chemical Corp. Class H

    1,222,000      954

China Shanshui Cement Group, Ltd.

    1,616,000      939

China Shenhua Energy Co., Ltd.

    1,247,708      5,319

China Telecom Corp., Ltd. Class H

    1,076,000      442

China Zhongwang Holdings, Ltd. (Æ)

    2,165,600      2,251

Chongqing Machinery & Electric Co.,
Ltd. (Æ)

    5,757,537      1,314

Comba Telecom Systems Holdings, Ltd.

    530,000      572

Ctrip.com International, Ltd. - ADR (Æ)

    66,000      2,065

Dongfeng Motor Group Co., Ltd. Class H (Ñ)

    1,680,000      2,177

Industrial & Commercial Bank of China

    10,331,398      7,510

Jiangsu Expressway Co., Ltd. Class H

    3,232,000      2,877

Jiangxi Copper Co., Ltd. Class H

    443,000      881

Li Ning Co., Ltd. (Ñ)

    83,500      254

New Oriental Education & Technology Group - ADR (Æ)(Ñ)

    27,200      1,850

PetroChina Co., Ltd. Class H

    508,000      568

PICC Property & Casualty Co., Ltd.
Class H (Æ)

    1,132,000      1,021

Ping An Insurance Group Co. of China, Ltd. Class H

    209,100      1,622

Shandong Weigao Group Medical Polymer Co., Ltd. Class H

    428,000      1,564

Shenzhou International Group Holdings, Ltd.

    502,000      630

Shui On Land, Ltd.

    1,772,000      837

Suntech Power Holdings Co.,
Ltd. - ADR (Æ)

    45,600      616

Want Want China Holdings, Ltd.

    3,233,640      2,063

Weichai Power Co., Ltd. Class H (Ñ)

    132,000      945

Weiqiao Textile Co. Class H

    1,336,500      893

Wumart Stores, Inc. Class H

    252,000      415

Yanzhou Coal Mining Co., Ltd. Class H

    4,564,000      8,899
         
        74,832
         
Colombia - 0.6%        

BanColombia SA

    155,000      1,734

BanColombia SA - ADR (Ñ)

    126,038      5,432
         
        7,166
         
Egypt - 0.9%        

Commercial International Bank

    217,400      2,382

Egyptian Financial Group-Hermes Holding

    168,093      950

Orascom Construction Industries

    97,444      4,607

Orascom Construction Industries - GDR

    50,500      2,367

Telecom Egypt

    360,140      1,197
         
        11,503
         
Greece - 0.3%        

Coca Cola Hellenic Bottling Co. SA

    169,744      3,895
         
     Principal
Amount ($)
or Shares		      Market
Value
$
Hong Kong - 2.9%        

ASM Pacific Technology, Ltd.

    162,600      1,338

Beijing Enterprises Holdings, Ltd.

    460,000      3,201

China Everbright, Ltd.

    48,000      112

China Merchants Holdings International Co., Ltd.

    206,658      688

China Mobile, Ltd.

    667,895      6,300

China Overseas Land & Investment, Ltd.

    1,312,667      2,334

China Pharmaceutical Group, Ltd.

    1,052,000      536

China Resources Enterprise, Ltd.

    1,744,985      5,716

China Taiping Insurance Holdings Co., Ltd. (Æ)

    1,604,600      5,031

China Unicom Hong Kong, Ltd.

    1,598,000      1,797

CNOOC, Ltd. (Ñ)

    3,486,000      4,893

CNOOC, Ltd. - ADR (Ñ)

    683      95

Foxconn International Holdings,
Ltd. (Æ)(Ñ)

    978,000      1,032

Shangri-La Asia, Ltd.

    58,000      101

Shenzhen Investment, Ltd.

    4,022,000      1,434

Shougang Concord International Enterprises Co., Ltd. (Æ)

    5,100,000      1,042

Sinotrans Shipping, Ltd.

    3,005,500      1,387

Texwinca Holdings, Ltd.

    262,000      231

TPV Technology, Ltd.

    1,558,000      957
         
        38,225
         
Hungary - 0.7%        

Magyar Telekom Telecommunications PLC

    284,900      1,022

MOL Hungarian Oil and Gas NyRt (Æ)

    46,993      4,297

MOL Hungarian Oil and Gas NyRt - ADR (Æ)(Å)

    12,898      632

OTP Bank PLC (Æ)

    63,900      1,842

Richter Gedeon Nyrt.

    5,400      1,140
         
        8,933
         
India - 6.1%        

Adani Power, Ltd. (Æ)

    236,484      511

Allahabad Bank

    617,235      1,860

Andhra Bank

    380,997      864

Axis Bank, Ltd.

    132,400      2,883

Bajaj Auto, Ltd.

    36,226      1,369

Bank of Baroda

    220,000      2,724

BF Utilities, Ltd. (Æ)

    15,751      360

Canara Bank (Ñ)

    265,712      2,209

Container Corp. of India

    58,525      1,546

Dabur India, Ltd. (Æ)

    20,100      70

Educomp Solutions, Ltd.

    33,000      500

Genesis Indian Investment Co., Ltd.

    322,619      17,592

GMR Infrastructure, Ltd. (Æ)(Ñ)

    515,644      658

GVK Power & Infrastructure, Ltd. (Æ)(Ñ)

    611,600      587

HCL Technologies, Ltd.

    197,972      1,481

HDFC Bank, Ltd. - ADR (Ñ)

    41,400      4,898

Hindalco Industries, Ltd.

    1,389,800      4,401

Hindustan Unilever, Ltd.

    262,900      1,377

Housing Development Finance Corp.

    36,212      1,862

ICICI Bank, Ltd.

    52,500      937

 

Russell Emerging Markets Fund   61

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

ICICI Bank, Ltd. - ADR

    34,200      1,207

Indian Overseas Bank

    250,000      488

Jaiprakash Associates, Ltd.

    576,180      1,681

Maruti Suzuki India, Ltd.

    27,684      827

Mundra Port and Special Economic Zone, Ltd.

    91,200      1,163

NTPC, Ltd.

    544,130      2,506

Oriental Bank of Commerce

    111,000      637

Punjab National Bank, Ltd.

    176,000      3,412

Reliance Industries, Ltd. - GDR (Þ)

    26,872      1,214

Satyam Computer Services, Ltd. (Æ)

    197,717      420

Sesa Goa, Ltd.

    547,337      4,078

Steel Authority of India, Ltd.

    449,898      2,080

Sterlite Industries India, Ltd. - ADR

    89,400      1,426

Tata Motors, Ltd. - ADR

    63,700      932

Tata Steel, Ltd.

    402,500      4,930

Union Bank of India

    484,000      2,656

United Spirits, Ltd.

    39,481      1,049
         
        79,395
         
Indonesia - 2.5%        

Astra Agro Lestari Tbk PT

    300,500      761

Astra International Tbk PT

    1,211,000      4,617

Bank Danamon Indonesia Tbk PT

    2,106,068      1,084

Bank Mandiri Tbk PT (Ñ)

    1,623,000      804

Bank Negara Indonesia Persero Tbk PT

    5,264,500      1,079

Bank Rakyat Indonesia

    7,987,500      6,491

Indah Kiat Pulp and Paper Corp. Tbk PT (Æ)

    4,141,000      957

Indocement Tunggal Prakarsa Tbk PT

    2,142,902      3,080

Perusahaan Perkebunan London Sumatra Indonesia Tbk PT

    714,000      644

Ramayana Lestari Sentosa Tbk PT (Å)

    5,547,492      512

Telekomunikasi Indonesia Tbk PT (Ñ)

    7,382,672      7,329

Telekomunikasi Indonesia Tbk PT - ADR

    77,870      3,084

Timah Tbk PT

    7,006,000      1,658
         
        32,100
         
Israel - 1.9%        

Azorim-Investment Development & Construction Co., Ltd. (Æ)(Ñ)

    35,657      194

Bezeq Israeli Telecommunication Corp., Ltd.

    1,084,855      2,770

Delek Automotive Systems, Ltd.

    78,128      960

Israel Chemicals, Ltd.

    501,321      6,478

Makhteshim-Agan Industries, Ltd.

    420,000      2,107

Partner Communications Co., Ltd.

    73,543      1,506

Teva Pharmaceutical Industries, Ltd. - ADR

    191,598      10,867
         
        24,882
         
Kazakhstan - 0.2%        

KazMunaiGas Exploration Production - GDR

    100,200      2,545
         
Luxembourg - 2.4%        

Evraz Group SA - GDR (Æ)

    102,123      3,391

Genesis Smaller Companies

    327,651      23,072
     Principal
Amount ($)
or Shares		      Market
Value
$

MHP SA - GDR (Æ)

    60,749      668

Millicom International Cellular SA

    35,600      2,539

Tenaris SA - ADR (Ñ)

    46,600      2,050
         
        31,720
         
Malaysia - 1.2%        

AMMB Holdings BHD

    1,644,452      2,335

Bursa Malaysia BHD

    259,800      584

CIMB Group Holdings BHD

    1,332,663      4,937

IGB Corp. BHD (Æ)

    1,650,100      870

KLCC Property Holdings BHD

    256,000      248

Kuala Lumpur Kepong BHD

    119,700      580

Lion Industries Corp. BHD

    1,080,600      538

MISC BHD

    141,700      332

PPB Group BHD

    123,000      575

Public Bank BHD

    899,031      3,157

Resorts World BHD

    395,300      321

TA Enterprise BHD

    2,029,000      415

TA Enterprise BHD (Æ)

    2,434,800      298
         
        15,190
         
Mexico - 3.6%        

Alfa SAB de CV Class A

    85,100      549

America Movil SAB de CV Series L (Ñ)

    355,888      15,535

Coca-Cola Femsa SAB de CV

    179,900      1,112

Corp. Moctezuma SAB de CV (Å)

    319,163      874

Fomento Economico Mexicano SAB de CV

    182,000      770

Fomento Economico Mexicano SAB de CV - ADR

    74,037      3,121

Grupo Aeroportuario del Sureste SAB de
CV - ADR (Ñ)

    8,805      426

Grupo Financiero Banorte SAB de CV
Class O (Æ)

    1,651,890      5,432

Grupo Financiero Inbursa SA Class O

    734,826      2,250

Grupo Mexico SAB de CV

    773,997      1,569

Grupo Televisa SA (Ñ)

    88,500      347

Grupo Televisa SA - ADR

    62,400      1,219

Megacable Holdings SAB de CV (Æ)

    482,803      970

Telmex Internacional SAB de
CV - ADR (Ñ)

    122,300      2,160

Urbi Desarrollos Urbanos SAB de CV (Æ)

    1,395,000      2,961

Wal-Mart de Mexico SAB de CV

    852,916      3,781

Wal-Mart de Mexico SAB de CV - ADR (Ñ)

    92,400      4,075
         
        47,151
         
Netherlands - 0.7%        

New World Resources NV

    141,740      1,470

X5 Retail Group NV - GDR (Æ)

    240,795      7,741
         
        9,211
         
Nigeria - 0.3%        

First City Monument Bank PLC (Æ)

    17,200,848      1,004

Guaranty Trust Bank PLC

    880,000      104

Guaranty Trust Bank PLC - GDR

    157,557      1,195

Nigerian Breweries PLC

    2,199,183      789

United Bank for Africa PLC (Æ)

    15,164,949      1,251
         
        4,343
         

 

62   Russell Emerging Markets Fund

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Oman - 0.1%        

Bank Muscat SAOG - GDR

    148,508      1,403
         
Panama - 0.2%        

Copa Holdings SA Class A

    45,100      2,344
         
Peru - 0.1%        

Cia de Minas Buenaventura SA - ADR

    49,693      1,564
         
Philippines - 0.2%        

Megaworld Corp.

    30,364,000      778

Philippine Long Distance Telephone Co.

    19,130      1,087

Philippine Long Distance Telephone Co. - ADR

    17,040      954
         
        2,819
         
Poland - 0.8%        

Bank Pekao SA (Æ)

    40,810      2,365

KGHM Polska Miedz SA

    256,319      8,409
         
        10,774
         
Qatar - 0.1%        

Qatar National Bank SAQ

    35,405      1,417
         
Russia - 6.7%        

Gazprom OAO - ADR (Ñ)

    489,849      12,055

Gazprom OAO - ADR

    495,255      12,080

Kalina (Å)

    15,100      272

LSR Group - GDR (Æ)

    127,200      1,053

Lukoil OAO - ADR(Ñ)

    307,191      16,947

Magnit OAO (Ñ)(Å)

    56,529      3,844

Magnit OAO - GDR (Æ)

    31,200      476

Magnit OAO - GDR

    16,200      245

Magnitogorsk Iron & Steel Works - GDR (Æ)

    25,200      319

Mechel - ADR

    104,385      2,066

MMC Norilsk Nickel - ADR (Æ)(Ñ)

    137,830      2,143

Mobile Telesystems OJSC - ADR

    125,108      5,978

NovaTek OAO - GDR

    46,220      3,246

Novolipetsk Steel OJSC - GDR (Æ)

    44,986      1,382

Novorossiysk Commercial Sea Port - GDR (Þ)

    23,647      272

Novorossiysk Commercial Sea Port -
GDR (Ñ)

    136,138      1,565

Raspadskaya (Æ)(Å)

    411,707      2,216

Rosneft Oil Co. - GDR

    582,582      4,520

Sberbank of Russian Federation

    2,539,878      7,306

Seventh Continent (Æ)(Å)

    38,051      301

Severstal - GDR (Æ)

    36,434      452

Surgutneftegaz - ADR

    93,010      789

TMK OAO - GDR (Æ)(Þ)

    35,600      299

Uralkali - GDR (Æ)

    55,453      1,172

Vimpel-Communications - ADR

    310,459      5,632
         
        86,630
         
Singapore - 0.1%        

Yanlord Land Group, Ltd.

    1,341,000      1,664
         
     Principal
Amount ($)
or Shares		      Market
Value
$
South Africa - 5.1%        

ABSA Group, Ltd.

    110,905      1,948

African Bank Investments, Ltd.

    139,081      539

AngloGold Ashanti, Ltd.

    52,426      1,884

ArcelorMittal South Africa, Ltd. Class H

    83,324      1,147

Astral Foods, Ltd.

    45,058      589

Aveng, Ltd.

    226,662      1,053

Bidvest Group, Ltd.

    283,262      4,861

FirstRand, Ltd.

    1,279,960      3,118

Foschini, Ltd. (Ñ)

    602,100      4,421

Grindrod, Ltd. (Ñ)

    565,750      1,116

Impala Platinum Holdings, Ltd.

    21,487      548

Imperial Holdings, Ltd.

    87,537      919

Investec, Ltd.

    98,049      696

JD Group, Ltd.

    704,476      4,022

Kumba Iron Ore, Ltd.

    24,099      1,022

Lewis Group, Ltd.

    151,600      1,033

Massmart Holdings, Ltd.

    260,343      2,953

Mondi, Ltd.

    255,393      1,483

MTN Group, Ltd.

    399,603      5,694

Netcare, Ltd. Class H (Æ)

    23,546      40

Pick n Pay Stores, Ltd.

    129,210      679

Pretoria Portland Cement Co., Ltd.

    442,900      1,935

Remgro, Ltd.

    71,224      834

Sanlam, Ltd. (Ñ)

    444,656      1,325

Sasol, Ltd.

    175,037      6,527

Shoprite Holdings, Ltd.

    256,801      2,351

Standard Bank Group, Ltd.

    681,603      9,657

Telkom SA, Ltd.

    107,093      462

Truworths International, Ltd.

    246,937      1,362

Woolworths Holdings, Ltd.

    601,866      1,432
         
        65,650
         
South Korea - 10.7%        

Amorepacific Corp. (Æ)

    746      520

Busan Bank (Æ)

    81,000      794

CJ CheilJedang Corp. (Æ)

    6,870      1,234

Daegu Bank

    78,900      1,007

Daelim Industrial Co., Ltd. (Æ)

    16,220      1,069

Dongbu Corp. (Æ)(Ñ)

    28,700      185

Dongbu Insurance Co., Ltd.

    115,940      3,342

Dongkuk Steel Mill Co., Ltd.

    26,150      517

Dongwon F&B Co., Ltd. (Æ)

    10,420      409

GS Holdings (Æ)

    2,779      83

Hana Financial Group, Inc. (Æ)

    252,150      7,178

Hanjin Heavy Industries & Construction Co., Ltd. (Æ)

    64,600      1,197

Hankook Tire Co., Ltd. (Æ)

    17,000      323

Hanyang Securities Co., Ltd.

    44,800      393

Hynix Semiconductor, Inc. (Æ)

    271,600      5,307

Hyosung Corp. (Æ)(Ñ)

    25,330      1,771

Hyundai Development Co. (Æ)

    36,810      1,136

Hyundai Marine & Fire Insurance Co., Ltd.

    170,260      2,597

Hyundai Mobis (Æ)

    7,012      892

Hyundai Motor Co.

    12,517      1,215

Hyundai Steel Co. (Æ)

    19,484      1,428

Ilsung Pharmaceuticals Co., Ltd. (Æ)

    4,003      213

 

Russell Emerging Markets Fund   63

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

KB Financial Group, Inc. (Æ)

    74,079      3,194

KB Financial Group, Inc. - ADR

    61,470      2,627

KCC Corp.

    4,685      1,372

Kia Motors Corp. (Æ)

    81,350      1,367

Korea Electric Power Corp.

    140,182      4,605

Korea Electric Power Corp. - ADR

    951      15

Korea Line Corp. (Æ)

    22,801      805

Korea Zinc Co., Ltd. (Æ)(Ñ)

    4,874      709

Korean Reinsurance Co.

    48,780      423

LG Corp. Class H (Æ)

    38,675      2,086

LG Display Co., Ltd. (Ñ)

    148,550      4,832

LG Electronics, Inc. Class H

    34,980      3,276

LG Household & Health Care, Ltd.

    15,619      3,802

LG Innotek Co., Ltd.

    14,986      1,152

LG Telecom, Ltd. (Æ)

    219,200      1,699

LIG Insurance Co., Ltd.

    131,630      2,325

MegaStudy Co., Ltd. (Æ)

    4,417      795

NHN Corp. (Æ)

    11,283      1,676

Orion Corp. (Æ)

    1,026      227

POSCO (Ñ)

    12,877      5,861

S&T Daewoo Co., Ltd. (Æ)

    37,910      848

Samsung Electronics Co., Ltd.

    45,133      30,414

Samsung Electronics Co., Ltd. - GDR(Þ)

    12,515      2,755

Samsung Electronics Co., Ltd. - GDR (Ñ)(Þ)

    16,190      5,586

Samsung Fire & Marine Insurance Co., Ltd.

    63,216      10,083

Shinhan Financial Group Co., Ltd. (Æ)

    100,377      3,506

Shinsegae Co., Ltd.

    9,798      4,420

SK Holdings Co., Ltd.

    5,902      423

SK Telecom Co., Ltd.

    7,718      1,211

STX Pan Ocean Co., Ltd. (Æ)(Ñ)

    150,870      1,530

Sungwoo Hitech Co., Ltd. (Æ)

    22,899      231

Taewoong Co., Ltd. (Æ)

    25,300      1,734
         
        138,399
         
Switzerland - 0.1%        

Cie Financiere Richemont SA

    269,900      910
         
Taiwan - 9.9%        

Ability Enterprise Co., Ltd.

    547,000      965

Alpha Networks, Inc.

    248,691      218

Altek Corp.

    1,838,795      3,258

AmTRAN Technology Co., Ltd.

    1,180,000      1,177

Asia Polymer

    875,000      744

AU Optronics Corp.

    4,078,202      4,513

AU Optronics Corp. - ADR

    159,501      1,745

Chi Mei Optoelectronics Corp. (Æ)(Ñ)

    2,130,000      1,650

China Chemical & Pharmaceutical Co., Ltd.

    718,000      424

China Development Financial Holding Corp. (Æ)

    2,512,000      693

Chinatrust Financial Holding Co., Ltd.

    1,499,122      815

Chunghwa Picture Tubes (Æ)

    287,000      34

Cia Brasileira de Distribuicao Grupo Pao de Acucar Class Preferenc

    538,200      430

Compal Electronics, Inc.

    3,892,599      5,416

Coretronic Corp.

    821,000      1,162

Delta Electronics, Inc.

    1,470,970      4,446

Far Eastern New Century Corp. (Å)

    1,371,158      1,503
     Principal
Amount ($)
or Shares		      Market
Value
$

Formosa Chemicals & Fibre Corp.

    566,820      1,220

Foxconn Technology Co., Ltd.

    197,000      777

Gigabyte Technology Co., Ltd.

    1,223,000      1,165

Grand Pacific Petrochemical (Æ)

    1,852,000      939

HannStar Display Corp. (Æ)

    5,618,000      1,265

Holtek Semiconductor, Inc.

    385,979      477

HON HAI Precision Industry Co., Ltd. (Å)

    1,996,308      8,374

Inventec Co., Ltd.

    540,000      307

Lite-On Technology Corp.

    417,440      531

Macronix International

    4,248,635      2,366

MediaTek, Inc.

    791,495      12,819

Merry Electronics Co., Ltd. (Ñ)

    754,000      1,446

Nan Ya Plastics Corp.

    831,991      1,547

Novatek Microelectronics Corp., Ltd.

    652,485      1,908

Powertech Technology, Inc.

    1,684,800      5,312

Prime View International Co., Ltd. (Æ)

    728,000      1,324

Qisda Corp. (Æ)

    1,645,000      852

Quanta Computer, Inc.

    2,035,000      4,062

Radiant Opto-Electronics Corp.

    992,870      1,370

Sanyang Industry Co., Ltd. (Æ)

    2,504,000      942

Siliconware Precision Industries Co.

    830,000      1,098

Siliconware Precision Industries Co. - ADR

    172,282      1,163

Sonix Technology Co., Ltd.

    234,000      537

St. Shine Optical Co., Ltd. (Ñ)

    103,108      619

Synnex Technology International Corp.

    1,795,910      3,657

Taiwan Fertilizer Co., Ltd. Class H

    251,000      812

Taiwan Hon Chuan Enterprise Co., Ltd.

    556,000      906

Taiwan Semiconductor Manufacturing Co., Ltd.

    7,727,388      14,745

Taiwan Semiconductor Manufacturing Co., Ltd. - ADR

    612,056      6,218

Transcend Information, Inc.

    394,000      1,267

Tsann Kuen Enterprise Co., Ltd.

    380,800      616

TSRC Corp.

    433,000      517

U-Ming Marine Transport Corp.

    609,000      1,156

Uni-President Enterprises Corp.

    1,153,742      1,232

Unimicron Technology Corp.

    1,181,620      1,439

United Microelectronics Corp. (Æ)

    9,945,718      4,906

United Microelectronics Corp. -
ADR (Æ)(Ñ)

    717,920      2,520

Universal Scientific Industrial Co., Ltd.

    3,083,000      1,999

Walsin Lihwa Corp. (Æ)

    1,140,000      388

Wellypower Optronics Corp.

    236,000      269

Wistron Corp.

    667,834      1,253

WPG Holdings Co., Ltd.

    291,000      447

Yuanta Financial Holding Co., Ltd.

    3,283,000      2,080

Yung Shin Pharmaceutical Industrial Co., Ltd.

    676,000      702
         
        128,742
         
Thailand - 2.0%        

Banpu PCL

    253,400      3,979

Charoen Pokphand Foods PCL

    3,300,800      1,144

CP ALL PCL

    2,255,599      1,563

Hana Microelectronics PCL (Ñ)

    623,500      395

Kasikornbank PCL

    416,600      1,026

Krung Thai Bank PCL

    12,187,100      3,525

 

64   Russell Emerging Markets Fund

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

PTT Exploration & Production PCL

    867,800      3,451

Ratchaburi Electricity Generating Holding PCL

    270,600      281

Siam City Bank PCL

    514,600      477

Siam Commercial Bank PCL

    1,948,085      4,680

Thai Beverage PCL (Ñ)

    10,142,456      1,872

Thoresen Thai Agencies PCL

    3,195,990      2,551

TPI Polene PCL (Æ)

    3,118,100      784
         
        25,728
         
Turkey - 5.2%        

Akbank TAS

    198,846      1,164

Anadolu Efes Biracilik Ve Malt Sanayii AS

    325,140      3,345

Arcelik AS (Æ)

    841,800      3,343

Asya Katilim Bankasi AS (Æ)

    494,648      1,300

BIM Birlesik Magazalar AS

    32,736      1,482

Cimsa Cimento Sanayi VE Tica

    263,875      1,397

Dogan Sirketler Grubu Holdings

    6,932,635      5,062

Dogus Otomotiv Servis ve Ticaret AS (Æ)

    128,495      462

EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS

    1,632,326      3,075

Ford Otomotiv Sanayi AS

    61,793      434

Hurriyet Gazetecilik AS (Æ)

    522,228      652

Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS (Æ)

    2,853,897      1,227

Selcuk Ecza Deposu Ticaret ve Sanayi A.S. (Ñ)

    479,326      1,003

Tekfen Holding AS (Æ)

    204,646      760

Tupras Turkiye Petrol Rafine (Ñ)

    94,208      1,937

Turk Ekonomi Bankasi AS (Æ)

    1,045,650      1,739

Turk Hava Yollari

    2,900,699      10,603

Turkiye Garanti Bankasi AS

    3,045,560      12,808

Turkiye Halk Bankasi AS

    336,897      2,302

Turkiye Is Bankasi Class C

    618,623      2,727

Turkiye Vakiflar Bankasi Tao Class D (Æ)

    2,268,110      5,924

Vestel Elektronik Sanayi (Æ)

    768,157      1,376

Yapi ve Kredi Bankasi AS (Æ)

    1,458,413      3,521
         
        67,643
         
United Arab Emirates - 0.1%        

DP World, Ltd.

    1,945,911      971
         
United Kingdom - 3.4%        

Anglo American PLC (Æ)

    343,184      12,683

Antofagasta PLC (Ñ)

    130,193      1,821

Eurasian Natural Resources Corp. (Ñ)

    103,799      1,485

Fresnillo PLC

    58,300      617

Hikma Pharmaceuticals PLC

    314,810      2,755

Kazakhmys PLC (Æ)

    187,800      3,578

Old Mutual PLC (Æ)

    4,338,900      7,189

SABMiller PLC

    285,195      7,783

Standard Chartered PLC

    36,705      839

Tullow Oil PLC

    272,500      4,988
         
        43,738
         
     Principal
Amount ($)
or Shares		      Market
Value
$
United States - 0.6%        

Central European Distribution Corp. (Æ)(Ñ)

    70,110      2,247

CTC Media, Inc. (Æ)(Ñ)

    45,000      607

NII Holdings, Inc. (Æ)

    17,400      570

Southern Copper Corp. (Ñ)

    154,257      4,108
         
        7,532
         
Zimbabwe - 0.1%        

Delta Corp., Ltd. (Æ) (Å)

    1,323,859      688
         

Total Common Stocks

(cost $900,415)

         1,175,775
         
Preferred Stocks - 4.7%        
Brazil - 3.4%        

Banco Bradesco SA

    247,500      4,114

Brasil Telecom SA (Æ)

    435,626      3,025

Centrais Eletricas Brasileiras SA

    259,800      4,782

Cia de Bebidas das Americas (Ñ)

    55,500      5,094

Cia Energetica de Minas Gerais

    50,000      831

Cia Energetica de Sao Paulo Class
Preferenc (Æ)(Ñ)

    59,700      744

Cia Paranaense de Energia

    79,400      1,623

Eletropaulo Metropolitana Eletricidade de Sao Paulo SA

    48,000      914

Investimentos Itau SA

    1,037,148      6,179

Itau Unibanco Holding SA

    242,437      4,647

Petroleo Brasileiro SA

    335,400      6,080

Telemar Norte Leste SA

    41,400      1,209

Ultrapar Participacoes SA (Ñ)

    67,651      2,975

Usinas Siderurgicas de Minas Gerais SA

    47,196      1,242

Vivo Participacoes SA

    71      2
         
        43,461
         
Chile - 0.1%        

Embotelladora Andina SA (Ñ)

    277,700      917

Embotelladora Andina SA Class A

    13,200      36
         
        953
         
Colombia - 0.0%        

BanColombia SA

    7,200      79
         
Russia - 0.3%        

AK Transneft OAO

    3,570      2,802

MDM Bank OAO (Å)

    1,376,805      923
         
        3,725
         
South Korea - 0.9%        

Samsung Electronics Co., Ltd.

    27,987      12,311
         

Total Preferred Stocks

(cost $45,296)

         60,529
         
Warrants & Rights - 0.3%        
Germany - 0.0%        

Deutsche Bank AG (Æ)
2017 Warrants

    48,400      146
         

 

Russell Emerging Markets Fund   65

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$		  
       
Malaysia - 0.0%        

MISC BHD (Æ)
2010 Rights

    28,340      5   
           
Netherlands Antilles - 0.1%        

Merrill Lynch Capital Markets (Æ)
2012 Warrants

    742,700      807   
           
Untied Kingdom - 0.1%        

Merrill Lynch International &
Co. C.V. (Æ)
2010 Warrants

    1,029,700      1,118   
           
United States - 0.1%        

Far Eastern New Century Corp. (Þ)(Æ)
2012 Warrants

    620,005      680   

HON HAI Precision Industry Co.,
Ltd. (Þ)(Æ)
2012 Warrants

    286,174      1,200   
           
        1,880   
           

Total Warrants & Rights

(cost $4,589)

         3,956   
           
Certificates of Participation - 0.1%        
Bahamas - 0.1%        

Credit Suisse Nassau due 09/07/12

    35,031,700      1,329   
           

Total Certificates of Participation

(cost $2,087)

         1,329   
           
Short-Term Investments - 3.3%        

Russell U.S. Cash Management Fund (£)

    42,646,181      42,646   
           

Total Short-Term Investments

(cost $42,646)

         42,646   
           
Other Securities - 9.6%        

Russell U.S. Cash Collateral Fund (×)

    72,895,152      72,895   

State Street Securities Lending Quality Trust (×)

    51,429,045      51,271   
           

Total Other Securities

(cost $124,324)

         124,166   
           
Total Investments - 108.8%
(identified cost $1,119,357)		         1,408,401   

Other Assets and Liabilities,

Net - (8.8%)

         (113,341 ) 
           
Net Assets - 100.0%         1,295,060   
           

A period of the portfolio has been fair value as of period end.


 

See accompanying notes which are an integral part of the Quarterly Report.

 

66   Russell Emerging Markets Fund

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
                   
Long Positions                    

Hang Seng Index (Hong Kong)

    125      HKD   91,645      02/10      (190)

JSE-40 Index (South Africa)

    160      ZAR   38,614      03/10      (186)

Kospi 200 Index Futures (South Korea)

    93      KRW   9,737,100      03/10      (323)

Mexican Bolsa Index (Mexico)

    120      MXN   36,482      03/10      (208)

MSCI Taiwan Index

    275      USD   7,535      02/10      (199)

S&P CNX Nifty Index

    495      USD   4,838      02/10      (44)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

             (1,150)
                     

 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Emerging Markets Fund   67

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                             

Brown Brothers Harriman Co.

      USD      2,534      BRL      4,750      02/02/10      (14 ) 

Brown Brothers Harriman Co.

      USD      2,716      BRL      4,750      02/02/10      (196 ) 

Brown Brothers Harriman Co.

      USD      2,555      BRL      4,750      03/02/10      (47 ) 

Brown Brothers Harriman Co.

      USD      52      EUR      38      02/03/10      —   

Brown Brothers Harriman Co.

      USD      32      GBP      20      02/03/10      —   

Brown Brothers Harriman Co.

      USD      7      ZAR      52      02/05/10      —   

Brown Brothers Harriman Co.

      BRL      4,750      USD      2,568      02/02/10      48   

Brown Brothers Harriman Co.

      BRL      4,750      USD      2,534      02/02/10      14   

Brown Brothers Harriman Co.

      INR      100,000      USD      2,188      03/17/10      30   

Credit Suisse First Boston

      USD      381      MXN      5,000      03/17/10      (1 ) 

Deutsche Bank

      USD      38      GBP      24      02/01/10      —   

Deutsche Bank

      USD      65      PLN      188      02/01/10      —   

Deutsche Bank

      USD      1,016      INR      47,500      03/17/10      9   

Deutsche Bank

      USD      599      KRW      700,000      03/17/10      2   

Deutsche Bank

      USD      381      MXN      5,000      03/17/10      (1 ) 

Deutsche Bank

      USD      1,204      ZAR      9,325      03/17/10      9   

Deutsche Bank

      USD      2,716      BRL      4,750      02/02/10      (196 ) 

Deutsche Bank

      BRL      4,750      USD      2,534      02/02/10      14   

Deutsche Bank

      ZAR      532      USD      70      02/02/10      1   

HSBC

      USD      43      ZAR      325      02/01/10      —   

HSBC

      USD      1,016      INR      47,500      03/17/10      9   

HSBC

      USD      601      KRW      700,000      03/17/10      1   

HSBC

      USD      381      MXN      5,000      03/17/10      (1 ) 

HSBC

      USD      1,204      ZAR      9,325      03/17/10      9   

HSBC

      USD      2,716      BRL      4,750      02/02/10      (196 ) 

HSBC

      BRL      4,750      USD      2,534      02/02/10      14   

HSBC

      ZAR      281      USD      37      02/01/10      —   

JP Morgan

      USD      382      MXN      5,000      03/17/10      (1 ) 

Mellon Bank

      USD      19      ILS      70      02/01/10      —   

Mellon Bank

      USD      71      ILS      265      02/02/10      —   

Mellon Bank

      USD      381      MXN      5,000      03/17/10      (1 ) 

Mellon Bank

      USD      1,204      ZAR      9,325      03/17/10      9   

Royal Bank of Scotland

      USD      2,534      BRL      4,750      02/02/10      (14 ) 

Royal Bank of Scotland

      USD      3,281      INR      150,000      03/17/10      (43 ) 

Royal Bank of Scotland

      USD      5,323      KRW      6,000,000      03/17/10      (165 ) 

Royal Bank of Scotland

      USD      1,558      MXN      20,000      03/17/10      (36 ) 

Royal Bank of Scotland

      USD      1,204      ZAR      9,325      03/17/10      9   

Royal Bank of Scotland

      USD      2,670      ZAR      20,000      03/17/10      (68 ) 

Royal Bank of Scotland

      USD      2,716      BRL      4,750      02/02/10      (196 ) 

Royal Bank of Scotland

      USD      5,739      BRL      10,000      02/02/10      (434 ) 

Royal Bank of Scotland

      USD      2,548      BRL      4,750      03/02/10      (41 ) 

Royal Bank of Scotland

      BRL      4,750      USD      2,561      02/02/10      41   

Royal Bank of Scotland

      BRL      4,750      USD      2,534      02/02/10      14   

Royal Bank of Scotland

      BRL      10,000      USD      5,334      02/02/10      29   

Royal Bank of Scotland

      MXN      3,000      USD      235      03/17/10      7   

Royal Bank of Scotland

      ZAR      3,000      USD      401      03/17/10      11   

State Street Bank and Trust Company

      USD      74      EUR      53      02/02/10      (1 ) 

State Street Bank and Trust Company

      USD      3      GBP      2      02/02/10      —   

State Street Bank and Trust Company

      USD      44      HKD      343      02/01/10      —   

State Street Bank and Trust Company

      USD      83      HKD      645      02/02/10      —   

State Street Bank and Trust Company

      USD      50      HKD      387      02/02/10      —   

State Street Bank and Trust Company

      USD      24      MXN      310      02/03/10      —   

State Street Bank and Trust Company

      USD      2      BRL      3      02/02/10      —   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

68   Russell Emerging Markets Fund

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                             

State Street Bank and Trust Company

      USD      77      BRL      145      02/02/10      —   

State Street Bank and Trust Company

      USD      2      BRL      4      02/02/10      —   

State Street Bank and Trust Company

      USD      29      BRL      54      02/01/10      —   

State Street Bank and Trust Company

      USD      1      BRL      1      02/01/10      —   

State Street Bank and Trust Company

      USD      2,547      BRL      4,750      03/02/10      (39 ) 

State Street Bank and Trust Company

      USD      1,018      INR      47,500      03/17/10      8   

State Street Bank and Trust Company

      USD      601      KRW      700,000      03/17/10      1   

State Street Bank and Trust Company

      USD      2,534      BRL      4,750      02/02/10      (14 ) 

State Street Bank and Trust Company

      USD      3,734      BRL      7,000      02/02/10      (20 ) 

State Street Bank and Trust Company

      USD      1,600      BRL      3,000      02/02/10      (9 ) 

State Street Bank and Trust Company

      USD      2,228      KRW      2,500,000      03/17/10      (79 ) 

State Street Bank and Trust Company

      USD      315      THB      10,420      02/01/10      (1 ) 

State Street Bank and Trust Company

      USD      196      KRW      226,722      02/01/10      (1 ) 

State Street Bank and Trust Company

      USD      408      KRW      471,730      02/01/10      (2 ) 

State Street Bank and Trust Company

      USD      359      KRW      415,031      02/01/10      (2 ) 

State Street Bank and Trust Company

      USD      73      KRW      83,983      02/01/10      —   

State Street Bank and Trust Company

      BRL      177      USD      95      02/01/10      —   

State Street Bank and Trust Company

      BRL      1,075      USD      573      02/01/10      2   

State Street Bank and Trust Company

      BRL      51      USD      27      02/02/10      —   

State Street Bank and Trust Company

      BRL      110      USD      58      02/02/10      —   

State Street Bank and Trust Company

      BRL      3,000      USD      1,692      02/02/10      100   

State Street Bank and Trust Company

      BRL      4,750      USD      2,559      02/02/10      39   

State Street Bank and Trust Company

      BRL      7,000      USD      3,944      02/02/10      230   

State Street Bank and Trust Company

      HKD      27      USD      3      02/02/10      —   

State Street Bank and Trust Company

      IDR      326,751      USD      35      02/01/10      —   

State Street Bank and Trust Company

      IDR      560,825      USD      60      02/02/10      —   

State Street Bank and Trust Company

      KRW      1,000,000      USD      887      03/17/10      27   

State Street Bank and Trust Company

      KRW      5,000,000      USD      4,448      03/17/10      148   

State Street Bank and Trust Company

      MXN      14,000      USD      1,090      03/17/10      24   

State Street Bank and Trust Company

      ZAR      14,000      USD      1,866      03/17/10      45   

UBS

      USD      77      ZAR      586      02/03/10      —   

UBS

      USD      130      TRY      195      02/02/10      —   

UBS

      USD      56      TRY      85      02/01/10      —   

UBS

      USD      406      HKD      3,153      02/03/10      —   

UBS

      USD      376      HKD      2,923      02/02/10      —   

UBS

      USD      2,534      BRL      4,750      02/02/10      (14 ) 

UBS

      USD      1,017      INR      47,500      03/17/10      9   

UBS

      USD      600      KRW      700,000      03/17/10      2   

UBS

      USD      2,547      BRL      4,750      03/02/10      (40 ) 

UBS

      BRL      4,750      USD      2,560      02/02/10      40   

UBS

      HKD      1,590      USD      205      02/01/10      —   

UBS

      HKD      1,972      USD      254      02/02/10      —   

UBS

      INR      12,000      USD      263      03/17/10      3   

UBS

      TRY      125      USD      84      02/01/10      —   

UBS

      ZAR      136      USD      18      02/01/10      —   

UBS

      ZAR      239      USD      31      02/01/10      —   

UBS

      ZAR      163      USD      21      02/04/10      —   

UBS

      ZAR      347      USD      46      02/05/10      —   

Westpac Banking Corporation

      USD      381      MXN      5,000      03/17/10      (1 ) 
                                 

Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts

           (916 ) 
                                 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Emerging Markets Fund   69

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Index Swap Contracts                                      

Underlying Security

   

Counterparty

    Notional Amount   

Terms

    Termination
Date		    Unrealized
Appreciation
(Depreciation)
$		  
                 

Bovespa Index Futures

    Goldman Sachs    BRL    7,012    Total Return of Underlying Security at Termination    02/17/10    (257 ) 

Bovespa Index Futures

    Goldman Sachs    BRL    10,558    Total Return of Underlying Security at Termination    02/17/10    (407 ) 
                     

Total Unrealized Appreciation (Depreciation) on Open Index Swap Contracts

       (664 ) 
                     

 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

70   Russell Emerging Markets Fund

Table of Contents

Russell Investment Company

Russell Emerging Markets Fund

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

Amounts in thousands

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
               

Common Stocks

                

Austria

      $ —       $ 2,515       $ —      $ 2,515   

Bermuda

        7,694         6,230         —        13,924   

Brazil

        126,244         —         —        126,244   

Canada

        2,020         —         —        2,020   

Cayman Islands

        3,151         36,925         —        40,076   

Chile

        11,289         —         —        11,289   

China

        6,782         68,050         —        74,832   

Colombia

        7,166         —         —        7,166   

Egypt

        4,750         6,753         —        11,503   

Greece

        3,895         —         —        3,895   

Hong Kong

        96         38,129         —        38,225   

Hungary

        1,772         7,161         —        8,933   

India

        26,124         53,271         —        79,395   

Indonesia

        3,084         29,016         —        32,100   

Israel

        10,867         14,015         —        24,882   

Kazakhstan

        2,545         —         —        2,545   

Luxembourg

        31,720         —         —        31,720   

Malaysia

        132         15,058         —        15,190   

Mexico

        47,151         —         —        47,151   

Netherlands

        —         9,211         —        9,211   

Nigeria

        3,148         1,195         —        4,343   

Oman

        1,403         —         —        1,403   

Panama

        2,344         —         —        2,344   

Peru

        1,564         —         —        1,564   

Philippines

        2,041         778         —        2,819   

Poland

        —         10,774         —        10,774   

Qatar

        —         1,417         —        1,417   

Russia

        50,897         35,733         —        86,630   

Singapore

        —         1,664         —        1,664   

South Africa

        4,235         61,415         —        65,650   

South Korea

        9,576         128,823         —        138,399   

Switzerland

        —         910         —        910   

Taiwan

        11,646         116,666         430        128,742   

Thailand

        18,779         6,949         —        25,728   

Turkey

        3,345         64,298         —        67,643   

United Arab Emirates

        971         —         —        971   

United Kingdom

        6,333         37,405         —        43,738   

United States

        7,532         —         —        7,532   

Zimbabwe

        688         —         —        688   

Preferred Stocks

        45,416         15,113         —        60,529   

Warrants & Rights

        3,956         —         —        3,956   

Certificates of Participation

        —         —         1,329        1,329   

Short-Term Investments

        —         42,646         —        42,646   

Other Securities

        —         124,166         —        124,166   
                                     

Total Investments

        470,356         936,286         1,759        1,408,401   
                                     

Other Financial Instruments

                

Futures Contracts

        (1,150 )       —         —        (1,150 ) 

Foreign Currency Exchange Contracts

        (9 )       (907 )       —        (916 ) 

Index Swaps

        8,657         (9,321 )       —        (664 ) 
                                     

Total Other Financial Instruments *

        7,498         (10,228 )       —        (2,730 ) 
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

Invetments in which significant unobservable inputs (Level 3) used in determining a value for the period ending January 31, 2010 were less than 1% of net assets.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Emerging Markets Fund   71

Table of Contents

Russell Investment Company

Russell Tax-Managed U.S. Large Cap Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 95.7%        
Consumer Discretionary - 13.3%     

Abercrombie & Fitch Co. Class A

    9,800      309

Advance Auto Parts, Inc.

    4,700      185

Amazon.com, Inc. (Æ)

    55,370      6,944

Avon Products, Inc.

    37,200      1,121

Bed Bath & Beyond, Inc. (Æ)

    4,100      159

Big Lots, Inc. (Æ)

    9,000      256

Carnival Corp.

    6,500      217

Coach, Inc.

    32,800      1,144

Columbia Sportswear Co. (Ñ)

    3,200      132

Comcast Corp.Class A

    112,500      1,706

Costco Wholesale Corp.

    1,300      75

Darden Restaurants, Inc.

    14,200      525

DR Horton, Inc. (Ñ)

    3,900      46

eBay, Inc. (Æ)

    55,700      1,282

Family Dollar Stores, Inc.

    7,800      241

Gap, Inc. (The)

    55,100      1,051

Harley-Davidson, Inc. (Ñ)

    20,000      455

Home Depot, Inc.

    13,500      378

International Game Technology

    74,200      1,361

ITT Educational Services, Inc. (Æ)(Ñ)

    1,200      116

Johnson Controls, Inc.

    28,000      779

KB Home

    6,900      106

Kohl’s Corp. (Æ)

    13,100      660

Las Vegas Sands Corp. (Æ)(Ñ)

    113,920      1,766

Lennar Corp. Class A

    28,800      442

Lowe’s Cos., Inc.

    115,020      2,490

Mattel, Inc.

    6,700      132

McDonald’s Corp.

    8,300      518

Nike, Inc. Class B

    46,400      2,958

Nordstrom, Inc.

    3,400      118

Omnicom Group, Inc.

    27,900      985

Polo Ralph Lauren Corp. Class A (Ñ)

    2,200      180

Pulte Homes, Inc. (Æ)(Ñ)

    135,470      1,425

Ross Stores, Inc.

    2,700      124

Royal Caribbean Cruises, Ltd. (Æ)(Ñ)

    9,500      248

Staples, Inc.

    75,200      1,764

Starbucks Corp. (Æ)

    71,600      1,560

Starwood Hotels & Resorts Worldwide, Inc. (Ñ)(ö)

    27,700      923

Target Corp.

    45,000      2,307

Time Warner Cable, Inc.

    29,947      1,305

Time Warner, Inc.

    22,291      612

VF Corp.

    6,800      490

Wal-Mart Stores, Inc.

    53,600      2,864

Walt Disney Co. (The)

    77,500      2,290

Wyndham Worldwide Corp.

    69,940      1,468
         
        46,217
         
Consumer Staples - 6.0%        

Altria Group, Inc.

    42,800      850

Church & Dwight Co., Inc.

    18,760      1,131

Coca-Cola Co. (The)

    54,000      2,930

Coca-Cola Enterprises, Inc.

    12,100      244

Colgate-Palmolive Co.

    11,320      906

ConAgra Foods, Inc.

    15,500      352
     Principal
Amount ($)
or Shares		      Market
Value
$

CVS Caremark Corp.

    99,110      3,208

General Mills, Inc.

    21,900      1,562

Kimberly-Clark Corp.

    11,199      665

Kraft Foods, Inc. Class A (Ñ)

    24,194      669

Kroger Co. (The)

    16,200      347

Mead Johnson Nutrition Co.

    14,000      633

PepsiCo, Inc.

    37,120      2,213

Philip Morris International, Inc.

    17,400      792

Procter & Gamble Co. (The)

    45,785      2,818

SYSCO Corp.

    17,000      476

Whole Foods Market, Inc. (Æ)(Ñ)

    33,230      905
         
        20,701
         
Energy - 10.5%        

Anadarko Petroleum Corp.

    2,180      139

Apache Corp.

    18,490      1,826

Baker Hughes, Inc.

    2,600      118

Chevron Corp.

    72,587      5,235

ConocoPhillips

    52,079      2,500

Devon Energy Corp.

    45,000      3,011

El Paso Corp.

    168,390      1,709

EOG Resources, Inc.

    4,400      398

Exxon Mobil Corp.

    91,546      5,898

FMC Technologies, Inc. (Æ)

    47,400      2,520

Halliburton Co.

    16,600      485

National Oilwell Varco, Inc.

    79,400      3,247

Noble Corp.

    9,800      395

Occidental Petroleum Corp.

    32,710      2,562

Royal Dutch Shell PLC - ADR

    6,300      349

Schlumberger, Ltd.

    58,700      3,725

Southwestern Energy Co. (Æ)

    15,760      676

Transocean, Ltd. (Æ)

    13,400      1,136

Weatherford International, Ltd. (Æ)

    44,680      701
         
        36,630
         
Financial Services - 16.4%        

ACE, Ltd.

    31,800      1,567

Aflac, Inc.

    16,700      809

Alexandria Real Estate Equities, Inc. (ö)(Ñ)

    6,000      358

Allstate Corp. (The)

    2,900      87

American Express Co.

    4,800      181

Axis Capital Holdings, Ltd.

    5,600      161

Bank of America Corp.

    340,748      5,173

Bank of New York Mellon Corp. (The)

    52,156      1,517

BB&T Corp. (Ñ)

    17,900      499

Capital One Financial Corp.

    17,670      651

Charles Schwab Corp. (The)

    176,000      3,219

Citigroup, Inc. (Æ)

    566,545      1,881

CME Group, Inc. Class A

    5,900      1,692

Comerica, Inc.

    41,100      1,418

Digital Realty Trust, Inc. (ö)(Ñ)

    5,800      278

Discover Financial Services

    106,200      1,453

E*Trade Financial Corp. (Æ)

    660,850      1,005

Fifth Third Bancorp

    96,490      1,200

First Niagara Financial Group, Inc.

    4,450      61

Goldman Sachs Group, Inc. (The)

    30,970      4,606

Health Care REIT, Inc. (ö)

    6,100      262

 

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

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Russell Investment Company

Russell Tax-Managed U.S. Large Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

IntercontinentalExchange, Inc. (Æ)

    23,100      2,206

JPMorgan Chase & Co.

    134,520      5,238

Kimco Realty Corp. (ö)

    6,000      76

Lincoln National Corp.

    1,100      27

Mastercard, Inc. Class A

    1,500      375

MetLife, Inc.

    44,080      1,557

Morgan Stanley

    37,900      1,015

NASDAQ OMX Group, Inc. (The) (Æ)

    12,200      219

New York Community Bancorp, Inc.

    10,800      162

PNC Financial Services Group, Inc.

    39,300      2,178

Principal Financial Group, Inc.

    10,100      233

Prudential Financial, Inc.

    13,100      655

Regions Financial Corp.

    14,000      89

RenaissanceRe Holdings, Ltd.

    7,500      406

Simon Property Group, Inc. (ö)

    4,268      307

State Street Corp.

    15,800      678

SunTrust Banks, Inc.

    12,200      297

T Rowe Price Group, Inc. (Ñ)

    15,990      793

TD Ameritrade Holding Corp. (Æ)

    27,000      480

US Bancorp

    29,800      747

Visa, Inc.

    47,005      3,856

Wells Fargo & Co.

    200,140      5,690

XL Capital, Ltd. Class A

    3,400      57

Zions Bancorporation (Ñ)

    80,100      1,520
         
        56,939
         
Health Care - 15.0%        

Abbott Laboratories

    81,800      4,331

Aetna, Inc.

    12,200      366

Alexion Pharmaceuticals, Inc. (Æ)

    13,800      640

Allergan, Inc.

    55,600      3,197

Amgen, Inc. (Æ)

    45,840      2,681

Baxter International, Inc.

    14,700      847

Bristol-Myers Squibb Co.

    43,600      1,062

Cardinal Health, Inc.

    11,200      370

Celgene Corp. (Æ)

    19,800      1,124

Cerner Corp. (Æ)(Ñ)

    6,600      499

Cigna Corp.

    10,100      341

Coventry Health Care, Inc. (Æ)

    2,900      66

Covidien PLC

    48,225      2,438

Express Scripts, Inc. Class A (Æ)

    10,380      871

Genzyme Corp. (Æ)

    55,500      3,011

Gilead Sciences, Inc. (Æ)

    46,490      2,244

Illumina, Inc. (Æ)(Ñ)

    53,700      1,970

Intuitive Surgical, Inc. (Æ)(Ñ)

    15,870      5,206

Johnson & Johnson

    21,184      1,332

McKesson Corp.

    16,600      976

Medco Health Solutions, Inc. (Æ)

    6,800      418

Medtronic, Inc.

    9,400      403

Merck & Co., Inc.

    70,600      2,696

Pfizer, Inc.

    296,618      5,535

Thermo Fisher Scientific, Inc. (Æ)

    60,400      2,788

United Therapeutics Corp. (Æ)

    6,000      357

UnitedHealth Group, Inc.

    78,600      2,594

Varian Medical Systems, Inc. (Æ)

    35,300      1,775

Watson Pharmaceuticals, Inc. Class B (Æ)

    29,300      1,124

WellPoint, Inc. (Æ)

    11,200      714
     Principal
Amount ($)
or Shares		      Market
Value
$

Zimmer Holdings, Inc. (Æ)

    1,200      68
         
        52,044
         
Materials and Processing - 3.3%     

Agrium, Inc. (Ñ)

    29,920      1,686

Air Products & Chemicals, Inc.

    8,900      676

Alcoa, Inc. (Ñ)

    42,000      535

Cliffs Natural Resources, Inc. (Ñ)

    4,200      168

Dow Chemical Co. (The)

    69,900      1,893

EI du Pont de Nemours & Co.

    11,100      362

Freeport-McMoRan Copper & Gold, Inc. Class B

    14,800      987

Monsanto Co.

    42,820      3,249

PPG Industries, Inc.

    9,800      575

Praxair, Inc.

    15,880      1,196

United States Steel Corp.

    5,400      240
         
        11,567
         
Producer Durables - 8.8%        

Accenture PLC Class A

    6,700      275

Automatic Data Processing, Inc.

    2,400      98

Avery Dennison Corp.

    11,900      387

Boeing Co. (The)

    5,900      358

Caterpillar, Inc.

    4,800      251

Chicago Bridge & Iron Co. NV (Æ)

    21,800      442

Cooper Industries PLC

    9,100      390

CSX Corp.

    50,130      2,149

Cummins, Inc.

    17,440      788

Deere & Co.

    18,200      909

Eaton Corp.

    15,000      919

Emerson Electric Co.

    8,300      345

GATX Corp. (Ñ)

    1,300      34

General Electric Co.

    208,500      3,353

Goodrich Corp.

    5,100      316

Honeywell International, Inc.

    16,400      634

Iron Mountain, Inc. (Æ)(Ñ)

    27,850      637

ITT Corp.

    29,820      1,441

McDermott International, Inc. (Æ)

    42,100      994

Norfolk Southern Corp.

    9,200      433

Northrop Grumman Corp.

    11,200      634

PACCAR, Inc. (Ñ)

    29,400      1,059

Parker Hannifin Corp.

    28,000      1,565

Republic Services, Inc. Class A

    38,504      1,031

Rockwell Collins, Inc.

    34,150      1,816

Textron, Inc. (Ñ)

    3,400      66

Union Pacific Corp.

    17,800      1,077

United Parcel Service, Inc. Class B

    23,290      1,345

United Technologies Corp.

    83,000      5,601

WW Grainger, Inc. (Ñ)

    10,500      1,042
         
        30,389
         
Technology - 19.7%        

Affiliated Computer Services, Inc. Class A (Æ)

    1,300      80

Alcatel-Lucent - ADR (Æ)(Ñ)

    117,160      390

American Tower Corp. Class A (Æ)

    3,100      132

 

Russell Tax-Managed U.S. Large Cap Fund   73

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Russell Investment Company

Russell Tax-Managed U.S. Large Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

AOL, Inc. (Æ)

    1,372      33

Apple, Inc. (Æ)

    47,570      9,139

Applied Materials, Inc.

    131,440      1,601

ASML Holding NV

    28,000      875

Atmel Corp. (Æ)

    29,300      136

Broadcom Corp. Class A (Æ)

    102,100      2,728

Cisco Systems, Inc. (Æ)

    307,730      6,915

Cognizant Technology Solutions Corp. Class A (Æ)

    26,500      1,157

Corning, Inc.

    51,600      933

Crown Castle International Corp. (Æ)

    6,100      225

F5 Networks, Inc. (Æ)

    21,630      1,069

Flir Systems, Inc. (Æ)(Ñ)

    36,300      1,074

Google, Inc. Class A (Æ)

    15,510      8,211

Hewlett-Packard Co.

    136,450      6,423

International Business Machines Corp.

    45,670      5,589

Intersil Corp. Class A

    17,200      232

Intuit, Inc. (Æ)

    6,100      181

Juniper Networks, Inc. (Æ)

    19,120      475

Lam Research Corp. (Æ)(Ñ)

    27,280      900

LSI Corp. (Æ)

    40,000      200

Microsoft Corp.

    142,300      4,010

National Semiconductor Corp. (Ñ)

    45,900      609

NetApp, Inc. (Æ)

    2,300      67

Oracle Corp.

    126,200      2,910

QUALCOMM, Inc.

    144,840      5,676

Rovi Corp. (Æ)

    457      13

Salesforce.com, Inc. (Æ)(Ñ)

    51,240      3,256

SanDisk Corp. (Æ)

    17,000      432

Sybase, Inc. (Æ)(Ñ)

    11,600      472

VMware, Inc. Class A (Æ)(Ñ)

    21,800      990

Xilinx, Inc. (Ñ)

    52,780      1,244
         
        68,377
         
Utilities - 2.7%        

America Movil SAB de CV Series L

    12,000      524

American Water Works Co., Inc.

    11,800      257

AT&T, Inc.

    50,956      1,292

CMS Energy Corp. (Ñ)

    14,700      223

Dynegy, Inc. Class A (Æ)

    3,332      5

Edison International

    15,100      503

Entergy Corp.

    6,400      488

FPL Group, Inc.

    17,600      858

NV Energy, Inc.

    24,300      280

PG&E Corp.

    22,200      938

Portland General Electric Co.

    5,100      100

Public Service Enterprise Group, Inc.

    13,900      425

Qwest Communications International, Inc.

    28,200      119

SCANA Corp.

    6,500      232

Southern Co.

    2,800      90

Sprint Nextel Corp. (Æ)

    198,900      652

Verizon Communications, Inc.

    60,138      1,769

Xcel Energy, Inc.

    36,500      759
         
        9,514
         
     Principal
Amount ($)
or Shares		      Market
Value
$		  
Total Common Stocks
(cost $275,733)		         332,378   
           
Preferred Stocks - 0.3%        
Financial Services - 0.3%        

Bank of America Corp.

    66,200      1,000   
           
Total Preferred Stocks
(cost $993)		         1,000   
           
Short-Term Investments - 3.5%     

Russell U.S. Cash Management Fund (£)

    12,149,242      12,149   
           
Total Short-Term Investments
(cost $12,149)		         12,149   
           
Other Securities - 6.4%        

Russell U.S. Cash Collateral Fund (×)

    13,058,570      13,059   

State Street Securities Lending Quality Trust (×)

    9,213,092      9,185   
           
Total Other Securities
(cost $22,272)		         22,244   
           
Total Investments - 105.9%
(identified cost $311,147)		         367,771   
Other Assets and Liabilities,
Net - (5.9%)		         (20,562 ) 
           
Net Assets - 100.0%         347,209   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

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

Table of Contents

Russell Investment Company

Russell Tax-Managed U.S. Large Cap Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
                   
Long Positions                    

S&P 500 E-Mini Index (CME)

    162      USD   8,670      03/10      (269)

S&P 500 Index (CME)

    15      USD   4,014      03/10      (82)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

           (351)
                     

 

 

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
                 

Common Stocks

                  

Consumer Discretionary

      $ 46,217       $ —      $ —      $ 46,217   

Consumer Staples

        20,701         —        —        20,701   

Energy

        36,630         —        —        36,630   

Financial Services

        56,939         —        —        56,939   

Health Care

        52,044         —        —        52,044   

Materials and Processing

        11,567         —        —        11,567   

Producer Durables

        30,389         —        —        30,389   

Technology

        68,377         —        —        68,377   

Utilities

        9,514         —        —        9,514   

Preferred Stocks

        1,000         —        —        1,000   

Short-Term Investments

        —         12,149        —        12,149   

Other Securities

        —         22,244        —        22,244   
                                     

Total Investments

        333,378         34,393        —        367,771   
                                     

Other Financial Instruments

                  

Futures Contracts

        (351 )       —        —        (351 ) 
                                     

Total Other Financial Instruments*

        (351 )       —        —        (351 ) 
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Tax-Managed U.S. Large Cap Fund   75

Table of Contents

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

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 94.7%        
Consumer Discretionary - 17.1%        

Aaron’s, Inc. (Ñ)

    4,065      113

Aeropostale, Inc. (Æ)

    4,292      141

American Public Education, Inc. (Æ)(Ñ)

    2,720      104

AnnTaylor Stores Corp. (Æ)(Ñ)

    24,255      305

Arbitron, Inc. (Ñ)

    19,219      486

BJ’s Restaurants, Inc. (Æ)(Ñ)

    23,800      503

Bridgepoint Education, Inc. (Æ)(Ñ)

    16,200      236

Brinker International, Inc.

    7,641      125

Buffalo Wild Wings, Inc. (Æ)(Ñ)

    12,500      585

California Pizza Kitchen, Inc. (Æ)

    7,865      109

Callaway Golf Co. (Ñ)

    15,691      117

Capella Education Co. (Æ)(Ñ)

    13,100      961

CarMax, Inc. (Æ)(Ñ)

    10,752      222

Carter’s, Inc. (Æ)

    17,675      457

Cato Corp. (The) Class A

    23,355      478

Cheesecake Factory, Inc. (The) (Æ)(Ñ)

    21,999      465

Cherokee, Inc. (Ñ)

    5,038      81

Chico’s FAS, Inc. (Æ)

    29,414      376

ChinaCast Education Corp. (Æ)(Ñ)

    56,900      378

Constant Contact, Inc. (Æ)(Ñ)

    11,900      210

Cooper Tire & Rubber Co. (Ñ)

    18,350      312

Core-Mark Holding Co., Inc. (Æ)

    4,245      127

Corinthian Colleges, Inc. (Æ)(Ñ)

    26,317      368

Dana Holding Corp. (Æ)

    9,122      94

Deckers Outdoor Corp. (Æ)

    3,310      325

DR Horton, Inc. (Ñ)

    12,139      143

DreamWorks Animation SKG, Inc. Class A (Æ)

    13,288      517

Fred’s, Inc. Class A (Ñ)

    1,487      15

Fuqi International, Inc. (Æ)(Ñ)

    4,800      79

Gannett Co., Inc. (Ñ)

    7,954      128

Gaylord Entertainment Co. (Æ)(Ñ)

    6,153      118

Gentex Corp.

    11,193      215

Goodyear Tire & Rubber Co. (The) (Æ)(Ñ)

    10,415      139

GSI Commerce, Inc. (Æ)(Ñ)

    9,435      215

Guess?, Inc.

    6,910      274

Hanesbrands, Inc. (Æ)

    5,494      126

Hertz Global Holdings, Inc. (Æ)(Ñ)

    14,058      146

Hibbett Sports, Inc. (Æ)

    21,500      456

Iconix Brand Group, Inc. (Æ)(Ñ)

    7,469      94

International Speedway Corp. Class A

    3,988      103

Interpublic Group of Cos., Inc. (Æ)(Ñ)

    19,460      126

ITT Educational Services, Inc. (Æ)(Ñ)

    1,556      151

Jack in the Box, Inc. (Æ)(Ñ)

    18,795      367

John Wiley & Sons, Inc. Class A (Ñ)

    3,181      133

K12, Inc. (Æ)(Ñ)

    17,800      356

Life Time Fitness, Inc. (Æ)(Ñ)

    2,427      58

LKQ Corp. (Æ)

    38,500      722

Lumber Liquidators Holdings, Inc. (Æ)

    1,500      36

Matthews International Corp. Class A

    10,900      369

MDC Holdings, Inc. (Ñ)

    3,430      115

Meredith Corp. (Ñ)

    17,425      540

MWI Veterinary Supply, Inc. (Æ)(Ñ)

    21,647      817

NutriSystem, Inc. (Ñ)

    9,180      187

O’Reilly Automotive, Inc. (Æ)(Ñ)

    13,900      525
     Principal
Amount ($)
or Shares		      Market
Value
$

Pool Corp.

    6,753      124

Pulte Homes, Inc. (Æ)(Ñ)

    33,555      353

RadioShack Corp. (Ñ)

    10,133      198

Red Robin Gourmet Burgers, Inc. (Æ)(Ñ)

    19,858      366

Ross Stores, Inc.

    3,309      152

Rue21, Inc. (Æ)(Ñ)

    9,200      258

School Specialty, Inc. (Æ)(Ñ)

    7,506      166

Service Corp. International (Ñ)

    20,340      156

Shoe Carnival, Inc. (Æ)

    7,055      129

Signet Jewelers, Ltd. (Æ)

    5,757      158

Smith & Wesson Holding Corp. (Æ)(Ñ)

    41,701      165

Snap-On, Inc.

    9,095      372

Sonic Corp. (Æ)(Ñ)

    10,434      88

Starwood Hotels & Resorts Worldwide, Inc. (ö)(Ñ)

    6,920      231

Tenneco, Inc. (Æ)

    28,242      499

Texas Roadhouse, Inc. Class A (Æ)(Ñ)

    13,100      152

Tiffany & Co. (Ñ)

    6,160      250

Titan International, Inc. (Ñ)

    34,279      266

TiVo, Inc. (Æ)(Ñ)

    11,785      106

Tractor Supply Co. (Æ)

    7,847      396

True Religion Apparel, Inc. (Æ)

    11,930      230

Tupperware Brands Corp.

    4,264      181

Under Armour, Inc. Class A (Æ)(Ñ)

    11,966      304

United Stationers, Inc. (Æ)

    5,155      281

Urban Outfitters, Inc. (Æ)

    10,335      326

ValueClick, Inc. (Æ)

    8,852      82

VistaPrint NV (Æ)(Ñ)

    23,152      1,297

WESCO International, Inc. (Æ)(Ñ)

    4,685      130

Weyco Group, Inc. (Ñ)

    4,498      101

WMS Industries, Inc. (Æ)

    6,585      244

Wyndham Worldwide Corp.

    8,302      174
         
        22,883
         
Consumer Staples - 3.9%        

Casey’s General Stores, Inc. (Ñ)

    14,736      452

Constellation Brands, Inc. Class A (Æ)

    7,438      120

Del Monte Foods Co.

    9,775      111

Energizer Holdings, Inc. (Æ)

    2,147      119

Flowers Foods, Inc. (Ñ)

    15,480      376

Green Mountain Coffee Roasters, Inc. (Æ)

    3,844      326

Hain Celestial Group, Inc. (The) (Æ)(Ñ)

    7,005      112

Hansen Natural Corp. (Æ)

    5,217      200

JM Smucker Co. (The)

    2,674      161

Lance, Inc. (Ñ)

    17,209      383

Peet’s Coffee & Tea, Inc. (Æ)

    21,885      716

Ralcorp Holdings, Inc. (Æ)

    2,598      160

Ruddick Corp. (Ñ)

    4,801      136

TreeHouse Foods, Inc. (Æ)(Ñ)

    31,340      1,214

United Natural Foods, Inc. (Æ)(Ñ)

    16,520      448

Whole Foods Market, Inc. (Æ)(Ñ)

    5,725      156
         
        5,190
         
Energy - 4.6%        

Alpha Natural Resources, Inc. (Æ)(Ñ)

    3,952      160

Arena Resources, Inc. (Æ)(Ñ)

    4,353      167

Atwood Oceanics, Inc. (Æ)

    6,520      219

 

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

Table of Contents

Russell Investment Company

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

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Cabot Oil & Gas Corp.

    4,510      173

CARBO Ceramics, Inc. (Ñ)

    7,510      495

Concho Resources, Inc. (Æ)

    5,050      227

Dril-Quip, Inc. (Æ)(Ñ)

    14,300      751

EXCO Resources, Inc.

    10,135      178

Forest Oil Corp. (Æ)(Ñ)

    24,951      602

FX Energy, Inc. (Æ)(Ñ)

    23,193      69

Gran Tierra Energy, Inc. (Æ)

    27,937      137

Hornbeck Offshore Services, Inc. (Æ)(Ñ)

    4,292      92

ION Geophysical Corp. (Æ)(Ñ)

    60,515      287

Lufkin Industries, Inc.

    1,370      87

North American Energy Partners, Inc. (Æ)(Ñ)

    36,842      240

Oceaneering International, Inc. (Æ)

    2,697      147

Oil States International, Inc. (Æ)(Ñ)

    4,755      175

Parker Drilling Co. (Æ)(Ñ)

    24,710      119

Rosetta Resources, Inc. (Æ)

    9,642      198

Superior Well Services, Inc. (Æ)(Ñ)

    12,520      198

Tesoro Corp.

    8,604      107

USEC, Inc. (Æ)(Ñ)

    18,759      75

Walter Energy, Inc. Class A

    5,969      387

Whiting Petroleum Corp. (Æ)

    12,323      820

Willbros Group, Inc. (Æ)

    6,867      105
         
        6,215
         
Financial Services - 16.4%        

Advent Software, Inc. (Æ)

    14,900      562

American Campus Communities, Inc. (ö)(Ñ)

    11,785      302

American Equity Investment Life Holding Co. (Ñ)

    50,210      369

AmeriCredit Corp. (Æ)(Ñ)

    8,888      186

Apollo Investment Corp. (Ñ)

    14,259      147

Ares Capital Corp. (Ñ)

    10,929      134

Argo Group International Holdings, Ltd. (Æ)

    16,419      439

Astoria Financial Corp. (Ñ)

    26,528      350

Axis Capital Holdings, Ltd.

    6,444      186

Banco Latinoamericano de Comercio Exterior SA Class E

    6,718      95

Bank of Hawaii Corp.

    8,150      371

Bank of the Ozarks, Inc. (Ñ)

    12,355      366

BioMed Realty Trust, Inc. (ö)

    12,185      178

Broadridge Financial Solutions, Inc.

    7,021      152

Camden Property Trust (ö)(Ñ)

    3,864      150

Cash America International, Inc.

    4,181      157

CB Richard Ellis Group, Inc. Class A (Æ)(Ñ)

    23,778      292

Cedar Shopping Centers, Inc. (ö)

    38,964      272

Community Bank System, Inc.

    1,439      30

Cybersource Corp. (Æ)(Ñ)

    43,730      791

Delphi Financial Group, Inc. Class A

    5,681      115

EastGroup Properties, Inc. (ö)(Ñ)

    3,592      137

Employers Holdings, Inc.

    9,125      121

Equifax, Inc.

    5,191      166

Euronet Worldwide, Inc. (Æ)

    5,264      107

Extra Space Storage, Inc. (ö)

    14,309      162

EZCORP, Inc. Class A (Æ)(Ñ)

    24,700      449
     Principal
Amount ($)
or Shares		      Market
Value
$

Fair Isaac Corp. (Ñ)

    19,233      422

Federal Realty Investment Trust (ö)(Ñ)

    3,132      202

Fidelity National Financial, Inc. Class A

    10,266      132

Fidelity National Information Services, Inc.

    4,083      96

First Commonwealth Financial Corp. (Ñ)

    17,759      104

First Horizon National Corp. (Æ)(Ñ)

    12,444      161

First Midwest Bancorp, Inc. (Ñ)

    41,527      547

Franklin Street Properties Corp. (ö)(Ñ)

    10,831      136

Genworth Financial, Inc. Class A (Æ)

    32,658      452

Glacier Bancorp, Inc. (Ñ)

    34,310      492

Greenhill & Co., Inc.

    3,214      250

Hanover Insurance Group, Inc. (The)

    9,274      393

Harleysville Group, Inc. (Ñ)

    5,355      173

Health Care REIT, Inc. (ö)

    4,831      208

Home Properties, Inc. (ö)(Ñ)

    7,851      348

Huntington Bancshares, Inc. (Ñ)

    29,550      142

IBERIABANK Corp. (Ñ)

    3,104      166

Inland Real Estate Corp. (ö)(Ñ)

    16,183      137

Investors Real Estate Trust (ö)(Ñ)

    11,046      96

Jefferies Group, Inc. (Ñ)

    6,369      163

Kayne Anderson Energy Development Co. (Ñ)

    5,082      74

KeyCorp

    27,818      200

Lazard, Ltd. Class A

    4,945      191

Markel Corp. (Æ)(Ñ)

    462      150

Marshall & Ilsley Corp.

    19,065      132

MGIC Investment Corp. (Æ)(Ñ)

    33,271      201

Mid-America Apartment Communities, Inc. (ö)(Ñ)

    18,716      878

MSCI, Inc. Class A (Æ)

    9,935      294

National Penn Bancshares, Inc. (Ñ)

    17,730      106

Nationwide Health Properties, Inc. (ö)

    5,778      190

Navigators Group, Inc. (Æ)

    2,522      108

NewAlliance Bancshares, Inc. (Ñ)

    13,152      153

Och-Ziff Capital Management Group LLC (Ñ)

    21,030      285

Old National Bancorp (Ñ)

    35,200      424

PacWest Bancorp (Ñ)

    7,731      160

PartnerRe, Ltd. - ADR

    2,400      179

Piper Jaffray Cos. (Æ)(Ñ)

    2,717      132

PMI Group, Inc. (The) (Æ)(Ñ)

    46,459      100

Post Properties, Inc. (ö)(Ñ)

    7,537      135

Prosperity Bancshares, Inc. (Ñ)

    9,809      396

Raymond James Financial, Inc.

    4,948      125

Reinsurance Group of America, Inc. Class A (Ñ)

    3,218      157

RLI Corp. (Ñ)

    6,745      347

Selective Insurance Group

    29,468      456

Signature Bank NY (Æ)

    22,888      791

SL Green Realty Corp. (ö)(Ñ)

    4,181      190

State Auto Financial Corp.

    6,466      102

Sterling Bancshares, Inc. (Ñ)

    17,762      91

Stifel Financial Corp. (Æ)(Ñ)

    4,175      218

Sun Communities, Inc. (ö)(Ñ)

    21,044      381

Tanger Factory Outlet Centers (ö)(Ñ)

    4,001      153

Umpqua Holdings Corp. (Ñ)

    13,510      167

United Bankshares, Inc. (Ñ)

    11,820      294

 

Russell Tax-Managed U.S. Mid & Small Cap Fund   77

Table of Contents

Russell Investment Company

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

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

United Fire & Casualty Co.

    8,085      136

Valley National Bancorp (Ñ)

    37,933      522

Ventas, Inc. (ö)

    3,726      157

Waddell & Reed Financial, Inc. Class A

    6,000      188

Washington Real Estate Investment Trust (ö)(Ñ)

    5,714      150

Westamerica Bancorporation (Ñ)

    9,353      520

Westwood Holdings Group, Inc. (Ñ)

    2,599      94

World Acceptance Corp. (Æ)(Ñ)

    13,204      533

WSFS Financial Corp. (Ñ)

    3,871      105
         
        21,971
         
Health Care - 13.3%        

Abaxis, Inc. (Æ)

    14,200      342

Alexion Pharmaceuticals, Inc. (Æ)

    13,468      624

Align Technology, Inc. (Æ)(Ñ)

    25,562      479

American Medical Systems Holdings, Inc. (Æ)(Ñ)

    8,058      155

AMERIGROUP Corp. Class A (Æ)

    16,490      420

Amsurg Corp. Class A (Æ)

    5,498      116

athenahealth, Inc. (Æ)(Ñ)

    6,470      254

Auxilium Pharmaceuticals, Inc. (Æ)

    3,796      107

Beckman Coulter, Inc.

    2,395      157

Bio-Reference Labs, Inc. (Æ)(Ñ)

    24,600      930

Catalyst Health Solutions, Inc. (Æ)(Ñ)

    16,400      645

Celldex Therapeutics, Inc. (Æ)(Ñ)

    15,583      69

Charles River Laboratories International, Inc. (Æ)

    5,001      182

Chemed Corp. (Ñ)

    13,713      638

Clarient, Inc. (Æ)

    100,400      227

Cooper Cos., Inc. (The) (Ñ)

    3,994      141

Covance, Inc. (Æ)(Ñ)

    3,134      182

Dendreon Corp. (Æ)(Ñ)

    4,412      122

Dentsply International, Inc. (Ñ)

    4,404      148

Eclipsys Corp. (Æ)(Ñ)

    5,794      97

Emergency Medical Services Corp. Class A (Æ)

    2,280      120

Endo Pharmaceuticals Holdings, Inc. (Æ)

    7,002      141

Gentiva Health Services, Inc. (Æ)

    12,943      331

Greatbatch, Inc. (Æ)(Ñ)

    5,955      117

Haemonetics Corp. (Æ)(Ñ)

    8,097      458

Healthsouth Corp. (Æ)(Ñ)

    21,926      395

Henry Schein, Inc. (Æ)(Ñ)

    2,906      157

HMS Holdings Corp. (Æ)(Ñ)

    17,400      785

Hologic, Inc. (Æ)(Ñ)

    9,896      149

Human Genome Sciences, Inc. (Æ)

    16,720      443

ICU Medical, Inc. (Æ)

    11,547      402

Inverness Medical Innovations, Inc. (Æ)(Ñ)

    3,875      156

IPC The Hospitalist Co., Inc. (Æ)(Ñ)

    22,100      751

Kindred Healthcare, Inc. (Æ)

    13,780      233

Magellan Health Services, Inc. (Æ)

    11,300      446

Matrixx Initiatives, Inc. (Æ)(Ñ)

    11,428      54

Medical Action Industries, Inc. (Æ)

    27,882      378

Mednax, Inc. (Æ)

    2,867      163

Meridian Bioscience, Inc. (Ñ)

    19,500      391

Merit Medical Systems, Inc. (Æ)

    35,231      628

Myriad Pharmaceuticals, Inc. (Æ)(Ñ)

    17,226      80
     Principal
Amount ($)
or Shares		      Market
Value
$

Neogen Corp. (Æ)(Ñ)

    23,797      506

NuVasive, Inc. (Æ)(Ñ)

    3,122      86

Omnicell, Inc. (Æ)(Ñ)

    8,793      105

Orthofix International NV (Æ)(Ñ)

    3,868      116

OSI Pharmaceuticals, Inc. (Æ)(Ñ)

    2,540      87

Parexel International Corp. (Æ)

    13,580      263

PDL BioPharma, Inc. (Ñ)

    15,776      101

Phase Forward, Inc. (Æ)(Ñ)

    31,300      458

PSS World Medical, Inc. (Æ)(Ñ)

    26,351      541

Quality Systems, Inc. (Ñ)

    1,813      93

RehabCare Group, Inc. (Æ)

    6,776      197

Savient Pharmaceuticals, Inc. (Æ)

    5,225      67

Seattle Genetics, Inc. (Æ)(Ñ)

    12,169      126

Sunrise Senior Living, Inc. (Æ)(Ñ)

    25,012      74

SXC Health Solutions Corp. (Æ)

    8,300      391

Techne Corp.

    2,619      172

Tenet Healthcare Corp. (Æ)

    19,776      109

United Therapeutics Corp. (Æ)(Ñ)

    5,825      347

Universal Health Services, Inc. Class B

    5,570      162

US Physical Therapy, Inc. (Æ)

    25,211      395

VCA Antech, Inc. (Æ)(Ñ)

    6,630      168

Viropharma, Inc. (Æ)

    10,814      107

Watson Pharmaceuticals, Inc. Class B (Æ)

    4,436      170

Zoll Medical Corp. (Æ)(Ñ)

    6,172      172
         
        17,826
         
Materials and Processing - 6.2%     

AAON, Inc. (Ñ)

    5,804      119

Airgas, Inc.

    3,415      144

AK Steel Holding Corp. (Ñ)

    5,349      109

Arch Chemicals, Inc. (Ñ)

    12,514      350

Ashland, Inc.

    3,215      130

Ball Corp.

    3,878      197

Belden, Inc.

    5,324      122

Buckeye Technologies, Inc. (Æ)

    24,050      275

Carpenter Technology Corp.

    11,287      302

CF Industries Holdings, Inc.

    1,341      125

Cliffs Natural Resources, Inc.

    7,485      299

Coeur d’Alene Mines Corp. (Æ)(Ñ)

    6,346      89

Commercial Metals Co.

    13,460      185

Compass Minerals International, Inc. (Ñ)

    8,597      542

Crown Holdings, Inc. (Æ)

    5,924      141

Deltic Timber Corp. (Ñ)

    4,050      182

Eastman Chemical Co. (Ñ)

    3,259      184

General Cable Corp. (Æ)(Ñ)

    11,236      327

Gibraltar Industries, Inc. (Æ)

    17,341      242

HB Fuller Co.

    6,494      130

Horsehead Holding Corp. (Æ)

    12,153      119

Interline Brands, Inc. (Æ)

    20,189      339

Kaydon Corp.

    9,628      315

Lennox International, Inc.

    4,420      169

Martin Marietta Materials, Inc. (Ñ)

    2,202      174

Minerals Technologies, Inc.

    2,691      129

Pactiv Corp. (Æ)

    6,078      137

Quanex Building Products Corp. (Ñ)

    8,096      130

Rogers Corp. (Æ)(Ñ)

    4,066      97

RPM International, Inc.

    9,551      179

 

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

Table of Contents

Russell Investment Company

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

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Silgan Holdings, Inc.

    7,215      374

Solutia, Inc. (Æ)

    8,680      119

Sonoco Products Co.

    6,294      175

Spartech Corp. (Æ)

    33,993      343

Steel Dynamics, Inc.

    11,150      169

Temple-Inland, Inc. (Ñ)

    1,904      33

Terra Industries, Inc.

    14,941      472

Texas Industries, Inc. (Ñ)

    6,300      214

Universal Forest Products, Inc. (Ñ)

    3,533      120

Wausau Paper Corp. (Æ)(Ñ)

    17,235      152

WR Grace & Co. (Æ)

    7,394      177
         
        8,330
         
Producer Durables - 12.8%        

Advanced Energy Industries, Inc. (Æ)

    23,869      313

Advisory Board Co. (The) (Æ)(Ñ)

    3,948      127

Aecom Technology Corp. (Æ)

    4,617      125

Aerovironment, Inc. (Æ)

    22,183      756

Alexander & Baldwin, Inc.

    11,961      382

American Superconductor Corp. (Æ)(Ñ)

    11,047      420

Ametek, Inc. (Ñ)

    4,483      163

AMR Corp. (Æ)(Ñ)

    19,159      133

AO Smith Corp. (Ñ)

    3,770      161

Applied Industrial Technologies, Inc. (Ñ)

    6,221      136

Barnes Group, Inc. (Ñ)

    29,861      479

Bristow Group, Inc. (Æ)(Ñ)

    10,590      378

Bucyrus International, Inc. Class A

    13,866      726

Carlisle Cos., Inc.

    5,356      180

CDI Corp.

    7,062      91

Con-way, Inc. (Ñ)

    3,997      114

Consolidated Graphics, Inc. (Æ)(Ñ)

    12,800      432

Continental Airlines, Inc. Class B (Æ)

    16,285      300

Corrections Corp. of America (Æ)

    6,957      130

CoStar Group, Inc. (Æ)(Ñ)

    9,200      372

Donaldson Co., Inc. (Ñ)

    4,620      177

Electronics for Imaging, Inc. (Æ)

    18,670      216

EnergySolutions, Inc.

    37,679      315

EnPro Industries, Inc. (Æ)(Ñ)

    11,743      286

ESCO Technologies, Inc. (Ñ)

    3,393      111

Exlservice Holdings, Inc. (Æ)

    9,437      171

Federal Signal Corp.

    12,796      83

Franklin Electric Co., Inc.

    9,980      260

Fuel Tech, Inc. (Æ)

    20,034      147

Gardner Denver, Inc.

    9,280      370

GATX Corp. (Ñ)

    5,200      136

Genco Shipping & Trading, Ltd. (Æ)(Ñ)

    7,700      148

General Maritime Corp. (Ñ)

    38,655      299

Genesee & Wyoming, Inc. Class A (Æ)(Ñ)

    11,331      334

GrafTech International, Ltd. (Æ)

    10,240      129

HEICO Corp. (Ñ)

    3,173      135

HNI Corp. (Ñ)

    6,712      168

IDEX Corp.

    9,622      272

Joy Global, Inc.

    5,100      233

Kadant, Inc. (Æ)

    10,995      167

Kansas City Southern (Æ)

    20,342      604

KBR, Inc.

    7,435      139

Kennametal, Inc. (Ñ)

    12,305      301
     Principal
Amount ($)
or Shares		      Market
Value
$

Knight Transportation, Inc. (Ñ)

    26,200      474

Knightsbridge Tankers, Ltd.

    2,589      37

Lexmark International, Inc. Class A (Æ)(Ñ)

    5,588      144

Littelfuse, Inc. (Æ)

    4,790      144

MAXIMUS, Inc. (Ñ)

    3,055      146

Mistras Group, Inc. (Æ)(Ñ)

    21,300      309

Modine Manufacturing Co. (Æ)

    23,649      225

Navigant Consulting, Inc. (Æ)

    8,710      118

Navistar International Corp. (Æ)(Ñ)

    7,879      291

Nordson Corp. (Ñ)

    7,388      418

Old Dominion Freight Line, Inc. (Æ)(Ñ)

    11,520      317

Orbital Sciences Corp. (Æ)

    6,866      109

Oshkosh Corp.

    3,139      113

Overseas Shipholding Group, Inc. (Ñ)

    2,935      131

Pentair, Inc.

    5,889      180

Robbins & Myers, Inc.

    14,833      330

Robert Half International, Inc. (Ñ)

    5,985      161

Roper Industries, Inc. (Ñ)

    3,403      170

Shaw Group, Inc. (The) (Æ)

    3,731      120

Skywest, Inc.

    7,732      113

Taser International, Inc. (Æ)(Ñ)

    18,117      102

Teekay Tankers, Ltd. Class A (Ñ)

    8,384      72

Tennant Co.

    7,315      175

Tetra Tech, Inc. (Æ)

    14,705      333

Toro Co. (Ñ)

    13,201      514

Tutor Perini Corp. (Æ)(Ñ)

    12,480      238

Wabtec Corp. (Ñ)

    9,734      373

World Fuel Services Corp. (Ñ)

    4,770      115

Zebra Technologies Corp. Class A (Æ)(Ñ)

    1,849      48
         
        17,139
         
Technology - 16.4%        

AboveNet, Inc. (Æ)

    3,685      216

Advanced Analogic Technologies, Inc. (Æ)(Ñ)

    27,544      92

Advanced Micro Devices, Inc. (Æ)(Ñ)

    25,851      193

Akamai Technologies, Inc. (Æ)(Ñ)

    7,663      189

American Science & Engineering, Inc. (Ñ)

    4,486      348

Anixter International, Inc. (Æ)(Ñ)

    7,820      326

Ansys, Inc. (Æ)(Ñ)

    23,707      992

Applied Micro Circuits Corp. (Æ)

    13,404      98

Archipelago Learning, Inc. (Æ)

    14,080      251

ArcSight, Inc. (Æ)(Ñ)

    13,900      330

Ariba, Inc. (Æ)(Ñ)

    11,688      147

Aruba Networks, Inc. (Æ)(Ñ)

    12,320      128

Atheros Communications, Inc. (Æ)(Ñ)

    14,360      461

Atmel Corp. (Æ)

    38,505      179

Aviat Networks, Inc. (Æ)

    13,379      96

Avnet, Inc. (Æ)

    5,180      137

Benchmark Electronics, Inc. (Æ)

    26,697      486

Black Box Corp.

    4,064      112

Blackboard, Inc. (Æ)(Ñ)

    18,400      725

Blue Coat Systems, Inc. (Æ)(Ñ)

    7,085      175

Brocade Communications Systems, Inc. (Æ)

    15,962      110

CACI International, Inc. Class A (Æ)(Ñ)

    12,816      615

CommScope, Inc. (Æ)(Ñ)

    4,042      110

Compellent Technologies, Inc. (Æ)(Ñ)

    10,615      211

 

Russell Tax-Managed U.S. Mid & Small Cap Fund   79

Table of Contents

Russell Investment Company

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

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Concur Technologies, Inc. (Æ)(Ñ)

    8,700      345

Cree, Inc. (Æ)(Ñ)

    3,630      203

DealerTrack Holdings, Inc. (Æ)(Ñ)

    21,800      392

Diodes, Inc. (Æ)

    24,112      402

Double-Take Software, Inc. (Æ)

    11,869      121

Earthlink, Inc. (Ñ)

    15,729      128

Ebix, Inc. (Æ)(Ñ)

    30,200      437

Emulex Corp. (Æ)

    38,385      431

Entegris, Inc. (Æ)

    85,411      311

Equinix, Inc. (Æ)(Ñ)

    1,642      158

F5 Networks, Inc. (Æ)

    20,225      1,000

Fairchild Semiconductor International, Inc. Class A (Æ)

    63,647      572

Finisar Corp. (Æ)

    20,880      215

GTSI Corp. (Æ)

    28,674      157

Harmonic, Inc. (Æ)

    40,330      245

Hittite Microwave Corp. (Æ)(Ñ)

    13,400      498

Internet Capital Group, Inc. (Æ)

    16,075      100

Intersil Corp. Class A

    2,349      32

IPG Photonics Corp. (Æ)(Ñ)

    7,740      111

Jabil Circuit, Inc.

    12,332      179

LivePerson, Inc. (Æ)(Ñ)

    60,749      385

LSI Corp. (Æ)

    36,536      182

Mantech International Corp. Class A (Æ)

    9,871      473

Mentor Graphics Corp. (Æ)(Ñ)

    43,405      348

Micros Systems, Inc. (Æ)(Ñ)

    4,815      138

Netlogic Microsystems, Inc. (Æ)(Ñ)

    17,090      700

Newport Corp. (Æ)

    10,062      86

NIC, Inc. (Ñ)

    66,900      567

Nuance Communications, Inc. (Æ)(Ñ)

    10,955      165

NVE Corp. (Æ)(Ñ)

    1,714      71

ON Semiconductor Corp. (Æ)

    56,905      410

Palm, Inc. (Æ)(Ñ)

    6,347      66

Parametric Technology Corp. (Æ)(Ñ)

    19,860      329

Plexus Corp. (Æ)

    24,920      848

Power Integrations, Inc. (Ñ)

    19,400      605

Progress Software Corp. (Æ)

    22,070      621

Red Hat, Inc. (Æ)

    7,105      193

RF Micro Devices, Inc. (Æ)(Ñ)

    23,836      92

Rovi Corp. (Æ)

    67      2

SAVVIS, Inc. (Æ)(Ñ)

    5,685      90

SolarWinds, Inc. (Æ)(Ñ)

    20,200      393

Sourcefire, Inc. (Æ)

    9,090      190

Stanley, Inc. (Æ)

    15,500      406

Syntel, Inc.

    2,747      92

Tellabs, Inc.

    27,696      178

TIBCO Software, Inc. (Æ)

    18,225      163

TriQuint Semiconductor, Inc. (Æ)

    23,726      142

Tyler Technologies, Inc. (Æ)(Ñ)

    35,500      665

Unisys Corp. (Æ)

    2,783      80

United Online, Inc.

    13,885      88

Varian Semiconductor Equipment Associates, Inc. (Æ)

    7,206      211

Volterra Semiconductor Corp. (Æ)

    7,922      154
         
        21,897
         
     Principal
Amount ($)
or Shares		      Market
Value
$		  
Utilities - 4.0%        

Alaska Communications Systems Group, Inc. (Ñ)

    49,861      406   

Atlantic Tele-Network, Inc.

    2,106      102   

Avista Corp.

    14,530      296   

Black Hills Corp. (Ñ)

    10,515      273   

CenterPoint Energy, Inc.

    13,848      193   

Central Vermont Public Service Corp. (Ñ)

    6,280      123   

CenturyTel, Inc.

    3,910      133   

Clearwire Corp. (Æ)(Ñ)

    7,740      50   

Cleco Corp. (Ñ)

    20,168      523   

Connecticut Water Service, Inc. (Ñ)

    4,800      107   

El Paso Electric Co. (Æ)

    23,887      460   

Empire District Electric Co. (The) (Ñ)

    7,038      130   

Great Plains Energy, Inc. (Ñ)

    8,785      157   

ITC Holdings Corp. (Ñ)

    3,085      166   

j2 Global Communications, Inc. (Æ)(Ñ)

    11,635      239   

Laclede Group, Inc. (The) (Ñ)

    4,089      132   

National Fuel Gas Co.

    3,916      184   

New Jersey Resources Corp.

    3,497      128   

Northeast Utilities

    7,011      177   

Northwest Natural Gas Co. (Ñ)

    2,782      121   

NorthWestern Corp.

    19,915      487   

NSTAR (Ñ)

    4,936      169   

Otter Tail Corp. (Ñ)

    4,647      100   

RRI Energy, Inc. (Æ)(Ñ)

    22,949      114   

Southwest Gas Corp.

    4,728      131   

Telephone & Data Systems, Inc.

    3,673      116   

Time Warner Telecom, Inc. Class A (Æ)(Ñ)

    10,467      161   
           
        5,378   
           

Total Common Stocks

(cost $117,579)

         126,829   
           
Short-Term Investments - 5.3%     

Russell U.S. Cash Management Fund (£)

    7,143,323      7,143   
           

Total Short-Term Investments

(cost $7,143)

         7,143   
           
Other Securities - 43.0%        

Russell U.S. Cash Collateral Fund (×)

    33,844,314      33,844   

State Street Securities Lending Quality Trust (×)

    23,877,867      23,804   
           

Total Other Securities

(cost $57,722)

         57,648   
           

Total Investments - 143.0%

(identified cost $182,444)

         191,620   

Other Assets and Liabilities,

Net - (43.0%)

         (57,608 ) 
           
Net Assets - 100.0%         134,012   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

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

Table of Contents

Russell Investment Company

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

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
                   
Long Positions                  

Russell 2000 Mini Index (CME)

    123      USD   7,392      03/10      (77)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                     (77)
                     

 

 

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
                 

Common Stock

                  

Consumer Discretionary

      $ 22,883       $ —      $ —      $ 22,883   

Consumer Staples

        5,190         —        —        5,190   

Energy

        6,215         —        —        6,215   

Financial Services

        21,971         —        —        21,971   

Health Care

        17,826         —        —        17,826   

Materials and Processing

        8,330         —        —        8,330   

Producer Durables

        17,139         —        —        17,139   

Technology

        21,897         —        —        21,897   

Utilities

        5,378         —        —        5,378   

Short-Term Investments

        —         7,143        —        7,143   

Other Securities

        —         57,648        —        57,648   
                                     

Total Investments

        126,829         64,791        —        191,620   
                                     

Other Financial Instruments

                  

Futures Contracts

        (77 )       —        —        (77 ) 
                                     

Total Other Financial Instruments*

        (77 )       —        —        (77 ) 
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Tax-Managed U.S. Mid & Small Cap Fund   81

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Long-Term Investments - 89.2%        
Asset-Backed Securities - 9.5%        

Aames Mortgage Investment Trust (Ê)
Series 2006-1 Class A3
0.391% due 04/25/36

    6,546      5,106

ABFS Mortgage Loan Trust (Ê)(Þ)
Series 2003-2 Class A
0.731% due 04/25/34

    699      608

Accredited Mortgage Loan Trust (Ê)
Series 2004-2 Class A2
0.531% due 07/25/34

    229      109

Series 2006-2 Class A2
0.321% due 09/25/36

    1,989      1,891

ACE Securities Corp. (Ê)
Series 2003-HE1 Class M1
1.206% due 11/25/33

    5,555      4,149

Series 2003-OP1 Class M2
1.731% due 12/25/33

    285      222

Series 2004-IN1 Class A1
0.551% due 05/25/34

    388      298

Series 2005-HE2 Class M3
0.711% due 04/25/35

    1,305      1,139

Series 2005-HE5 Class A2C
0.611% due 08/25/35

    1,241      1,213

Series 2005-SD3 Class A
0.631% due 08/25/45

    1,180      1,038

Series 2006-FM1 Class A2C
0.381% due 07/25/36

    7,595      2,661

Series 2006-HE2 Class A2C
0.391% due 05/25/36

    3,600      2,581

Series 2006-OP1 Class M3
0.541% due 04/25/36

    1,697      13

Aegis Asset Backed Securities Trust (Ê)
Series 2003-3 Class M2
2.706% due 01/25/34

    1,421      784

Series 2005-4 Class 1A3
0.501% due 10/25/35

    1,163      1,120

Ally Auto Receivables Trust (Þ)
Series 2009-A Class A2
1.320% due 03/15/12

    1,600      1,608

American Airlines Pass Through Trust 2001-01
Series 01-1
6.817% due 05/23/11

    1,290      1,274

6.977% due 11/23/22

    199      157

American Express Credit Account Master Trust (Ê)
Series 2005-5 Class A
0.273% due 02/15/13

    1,063      1,062

Series 2009-2 Class A
1.481% due 03/15/17

    2,185      2,264

AmeriCredit Automobile Receivables Trust
Series 2007-CM Class A3A
5.420% due 05/07/12

    2,997      3,042

Ameriquest Mortgage Securities, Inc. (Ê)
Series 2002-D Class M1
3.981% due 02/25/33

    800      277
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2004-R10 Class A 5
0.621% due 11/25/34

    3      3

Series 2005-R3 Class A1A
0.431% due 05/25/35

    3,306      3,213

Series 2005-R5 Class A2B
0.461% due 07/25/35

    70      70

Series 2005-R6 Class A2
0.431% due 08/25/35

    7,934      7,079

Series 2005-R7 Class A2C
0.491% due 09/25/35

    419      414

Series 2005-R10 Class A2B
0.451% due 12/25/35

    890      782

ARES CLO Funds (Ê)(Å)
Series 2005-10A Class A2
0.494% due 09/18/17

    13,524      12,387

Argent Securities, Inc. (Ê)
Series 2005-W2 Class A2B1
0.431% due 10/25/35

    5,146      4,630

Series 2005-W2 Class A2B2
0.491% due 10/25/35

    943      849

Series 2005-W5 Class A2D
0.551% due 01/25/36

    7,650      3,357

Series 2006-W5 Class A2C
0.381% due 06/25/36

    2,029      777

Arlington Street CDO, Ltd. (Þ)
Series 2000-1A Class A2
7.660% due 06/10/12

    1,470      1,375

Armstrong Loan Funding, Ltd. (Ê)(Å)
Series 2008-1A Class A
0.799% due 08/01/16

    3,766      3,655

Asset Backed Funding Certificates (Ê)
Series 2006-HE1 Class A2A
0.291% due 01/25/37

    561      545

Series 2006-HE1 Class A2C
0.391% due 01/25/37

    2,745      1,096

Series 2006-OPT Class A3A
0.291% due 11/25/36

    37      37

Series 2006-OPT Class A3B
0.391% due 11/25/36

    1,390      671

Series 2006-OPT Class M2
0.521% due 09/25/36

    1,493      23

Asset Backed Securities Corp. Home Equity (Ê)
Series 2003-HE1 Class M2
3.758% due 01/15/33

    1,963      1,779

Series 2004-HE6 Class A1
0.506% due 09/25/34

    80      67

Series 2004-HE7 Class M9 (Þ)
3.731% due 10/25/34

    1,159      51

Series 2006-HE3 Class A4
0.401% due 03/25/36

    1,317      934

Series 2006-HE5 Class A4
0.371% due 07/25/36

    4,770      3,143

Bank of America Auto Trust (Þ)
Series 2009-1A Class A2
1.700% due 12/15/11

    1,400      1,407

 

82   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Bank of America Credit Card Trust (Ê)
Series 2007-A12 Class A12
0.433% due 01/15/13

    7,400      7,396

Bayview Financial Acquisition Trust
Series 2004-C Class A1 (Ê)
0.861% due 05/28/44

    299      265

Series 2006-A Class 1A3
5.865% due 02/28/41

    1,880      1,219

Bear Stearns Asset Backed Securities Trust (Ê)
Series 2005-HE1 Class A2
0.521% due 11/25/35

    113      111

Series 2006-EC1 Class A2
0.451% due 12/25/35

    539      527

Series 2006-HE8 Class 2M1
0.561% due 10/25/36

    2,000      220

Series 2006-HE9 Class 1A2
0.381% due 11/25/36

    4,330      2,210

Black Diamond CLO, Ltd. (Ê)(Å)
Series 2007-1A Class AD
0.499% due 04/29/19

    27,750      24,991

BNC Mortgage Loan Trust (Ê)
Series 2007-2 Class A2
0.331% due 05/25/37

    479      424

Capital Auto Receivables Asset Trust
Series 2007-3 Class A3A
5.020% due 09/15/11

    1,895      1,920

Capital One Multi-Asset Execution Trust
Series 2005-A6 Class A6 (Ê)
0.301% due 07/15/15

    5,670      5,603

Series 2006-A2 Class A
4.850% due 11/15/13

    116      121

Series 2006-A11 Class A11 (Ê)
0.329% due 06/17/19

    3,040      2,942

Series 2006-B1 Class B1 (Ê)
0.512% due 01/15/19

    5,550      5,040

Series 2006-C1 Class C (Ê)
0.522% due 03/17/14

    4,390      4,307

Series 2006-C2 Class C (Ê)
0.532% due 06/16/14

    3,585      3,504

Series 2007-A4 Class A4 (Ê)
0.262% due 03/16/15

    7,150      7,089

Series 2008-A5 Class A5
4.850% due 02/18/14

    3,535      3,703

Carrington Mortgage Loan Trust (Ê)
Series 2006-FRE Class A2
0.351% due 10/25/36

    3,110      2,573

Series 2006-NC3 Class A4
0.471% due 08/25/36

    2,117      889

Series 2006-NC5 Class A1
0.281% due 01/25/37

    1,614      1,540

Cendant Timeshare Receivables Funding LLC (Þ)
Series 2004-1A Class A1
3.670% due 05/20/16

    24      22
     Principal
Amount ($)
or Shares		      Market
Value
$

Centex Home Equity
Series 2002-D Class AF4
5.210% due 11/25/28

    111      105

Series 2005-D Class AF4
5.270% due 10/25/35

    521      517

Series 2006-A Class AV4 (Ê)
0.481% due 06/25/36

    1,800      1,001

Chase Issuance Trust
Series 2005-A7 Class A7
4.550% due 03/15/13

    833      864

Series 2005-A10 Class A10
4.650% due 12/17/12

    1,648      1,696

Series 2006-A4 Class A4 (Ê)
0.253% due 10/15/13

    6,130      6,108

Series 2007-A6 Class A6 (Ê)
0.233% due 04/16/12

    638      638

Series 2007-A9 Class A9 (Ê)
0.263% due 06/16/14

    5,360      5,326

Series 2007-A11 Class A11 (Ê)
0.233% due 07/16/12

    579      579

Series 2007-A17 Class A
5.120% due 10/15/14

    3,807      4,141

Series 2009-A2 Class A2 (Ê)
1.782% due 04/15/14

    5,415      5,539

Chatham Light CLO, Ltd. (Ê)(Å)
Series 2005-2A Class A1
0.531% due 08/03/19

    3,466      3,152

CIT Mortgage Loan Trust (Ê)(Å)
Series 2007-1 Class 2A1
1.231% due 10/25/37

    3,021      2,641

Series 2007-1 Class 2A2
1.383% due 10/25/37

    2,100      932

Series 2007-1 Class 2A3
1.921% due 10/25/37

    3,900      1,472

Citibank Credit Card Issuance Trust
Series 2005-A5 Class A5
4.550% due 06/20/17

    1,022      1,087

Series 2008-A5 Class A5
4.850% due 04/22/15

    4,555      4,927

Citigroup Mortgage Loan Trust, Inc. (Ê)
Series 2006-NC2 Class A2B
0.391% due 09/25/36

    11,737      6,247

Series 2006-WFH Class A2
0.331% due 10/25/36

    2,031      2,007

Series 2006-WFH Class A2A
0.381% due 08/25/36

    2,163      1,606

Series 2006-WFH Class A3
0.381% due 10/25/36

    3,105      2,463

0.381% due 11/25/36

    2,815      1,814

Series 2007-AHL Class A3A
0.291% due 07/25/45

    1,378      1,083

Series 2007-AMC Class A2A
0.341% due 03/25/37

    561      513

0.291% due 05/25/37

    3,961      3,528

Series 2007-WFH Class A4
0.431% due 01/25/37

    11,880      5,252

 

Russell Strategic Bond Fund   83

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

College Loan Corp. Trust (Ê)(Å)
Series 2002-2 Class A21
Zero coupon due 03/01/42

    2,000      1,700

Conseco Finance Home Loan Trust
Series 2000-E Class M1
8.130% due 08/15/31

    673      628

Conseco Finance Securitizations Corp.
Series 2001-4 Class A4
7.360% due 09/01/33

    4,689      4,781

Conseco Financial Corp.
Series 1997-5 Class A6
6.820% due 05/15/29

    386      388

Countrywide Asset-Backed Certificates
Series 2004-AB2 Class M3 (Ê)
0.831% due 05/25/36

    1,395      181

Series 2004-BC1 Class M1 (Ê)
0.981% due 02/25/34

    801      687

Series 2005-4 Class AF3
4.456% due 10/25/35

    611      589

Series 2005-7 Class 3AV3 (Ê)
0.641% due 11/25/35

    547      540

Series 2005-7 Class AF3
4.454% due 10/25/35

    361      355

Series 2005-11 Class 3AV2 (Ê)
0.521% due 02/25/36

    1,934      1,823

Series 2005-12 Class 2A3
5.069% due 02/25/36

    859      836

Series 2005-17 Class 1AF3
5.711% due 05/25/36

    10,900      4,913

Series 2005-AB1 Class A2 (Ê)
0.441% due 08/25/35

    922      882

Series 2006-1 Class AF3
5.348% due 07/25/36

    1,931      1,658

Series 2006-2 Class 2A2 (Ê)
0.421% due 06/25/36

    978      811

Series 2006-3 Class 2A2 (Ê)
0.411% due 06/25/36

    5,624      4,688

Series 2006-6 Class 2A3 (Ê)
0.511% due 09/25/36

    13,985      5,877

Series 2006-11 Class 1AF3
6.050% due 09/25/46

    2,083      1,056

Series 2006-11 Class 1AF4
6.300% due 09/25/46

    2,337      986

Series 2006-13 Class 1AF3
5.944% due 01/25/37

    4,085      2,165

Series 2006-15 Class A1 (Ê)
0.341% due 10/25/46

    94      92

Series 2006-15 Class A3
5.689% due 10/25/46

    1,655      1,099

Series 2006-22 Class 2A1 (Ê)
0.281% due 05/25/47

    141      137

Series 2006-23 Class 2A1 (Ê)
0.281% due 05/25/37

    111      109

Series 2006-26 Class 2A1 (Ê)
0.311% due 06/25/37

    76      73

Series 2006-BC1 Class 2A2 (Ê)
0.411% due 04/25/36

    465      429
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-S1 Class A2
5.549% due 08/25/21

    186      152

Series 2006-S3 Class A2
6.085% due 06/25/21

    1,631      792

Series 2006-S6 Class A2
5.519% due 03/25/34

    5,075      3,966

Series 2006-S9 Class A3

5.728% due 08/25/36

    1,738      799

Series 2007-4 Class A2

5.530% due 09/25/37

    8,943      7,990

Series 2007-7 Class 2A1 (Ê)

0.311% due 10/25/47

    332      313

Countrywide Home Equity Loan Trust (Ê)
Series 2006-HW Class 2A1B
0.383% due 11/15/36

    3,262      2,396

Credit Suisse First Boston Mortgage Securities Corp.
Series 2005-AGE Class A2
4.640% due 02/25/32

    267      263

Credit-Based Asset Servicing and Securitization LLC
Series 2004-CB7 Class AF5
4.585% due 10/25/34

    770      723

Series 2007-CB1 Class AF2
5.721% due 01/25/37

    2,035      980

CSAB Mortgage Backed Trust
Series 2006-3 Class A1B2 (Ê)
0.326% due 11/25/36

    —        —  

Series 2006-4 Class A1A
5.868% due 12/25/36

    175      160

Daimler Chrysler Auto Trust (Ê)
Series 2008-B Class A2B
1.162% due 07/08/11

    216      216

Series 2008-B Class A3B
1.712% due 09/10/12

    300      301

Discover Card Master Trust
Series 2007-A2 Class A2 (Ê)
0.594% due 06/15/15

    3,225      3,199

Series 2008-A3 Class A3
5.100% due 10/15/13

    7,380      7,750

Series 2008-A4 Class A4
5.650% due 12/15/15

    5,225      5,752

Series 2009-A2 Class A (Ê)
1.532% due 02/17/15

    3,965      4,045

Series 2010-A1 Class A1 (Ê)
0.881% due 09/15/15

    3,560      3,560

Discover Card Master Trust I (Ê)
Series 2006-2 Class A3
0.312% due 01/19/16

    7,290      7,140

Series 2006-3 Class A1
0.262% due 03/15/14

    9,645      9,584

Series 2007-3 Class A2
0.281% due 10/16/14

    4,730      4,686

Dunkin Securitization (Þ)
Series 2006-1 Class A2
5.779% due 06/20/31

    9,790      9,588

 

84   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Ellington Loan Acquisition Trust (Ê)(Þ)
Series 2007-2 Class A2A
1.131% due 05/25/37

    7,519      6,724

Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2000-30 Class A5
8.486% due 12/25/30

    487      441

Fieldstone Mortgage Investment Corp. (Ê)
Series 2006-1 Class A2
0.421% due 05/25/36

    2,574      1,583

Series 2006-3 Class 2A1
0.301% due 11/25/36

    62      60

Series 2006-3 Class 2A3
0.391% due 11/25/36

    1,465      517

First Franklin Mortgage Loan Asset Backed Certificates (Ê)
Series 2006-FF1 Class 2A3
0.371% due 12/25/36

    6,005      2,426

Series 2006-FF1 Class A2
0.291% due 10/25/36

    439      422

Series 2006-FF1 Class A2C
0.391% due 10/25/36

    2,621      1,118

0.391% due 12/25/37

    8,631      3,572

Series 2006-FF1 Class A3
0.281% due 11/25/36

    378      369

Series 2006-FF1 Class A5
0.391% due 11/25/36

    5,321      1,766

0.381% due 12/25/36

    4,675      1,701

Series 2006-FF4 Class A2
0.421% due 03/25/36

    289      206

Series 2006-FF9 Class M1
0.481% due 06/25/36

    8,330      229

Series 2007-FF1 Class A2A
0.271% due 01/25/38

    220      215

Series 2007-FF1 Class A2B
0.321% due 01/25/38

    25,000      14,296

Series 2007-FF1 Class A2C
0.371% due 01/25/38

    1,510      674

Series 2007-FF2 Class A2A
0.281% due 03/25/37

    8      7

First NLC Trust (Ê)
Series 2005-2 Class AV2
0.531% due 09/25/35

    388      380

Ford Credit Auto Owner Trust
Series 2009-C Class A2
2.000% due 12/15/11

    600      603

Ford Credit Floorplan Master Owner Trust (Ê)(Å)
Series 2010-1 Class A
1.882% due 12/15/14

    4,220      4,240

Fremont Home Loan Trust (Ê)
Series 2006-3 Class 2A2
0.351% due 02/25/37

    4,243      3,517

Series 2006-B Class 2A3
0.391% due 08/25/36

    2,760      942

Series 2006-E Class 2A1
0.291% due 01/25/37

    240      163
     Principal
Amount ($)
or Shares		      Market
Value
$

GE Capital Credit Card Master Note Trust (Ê)
Series 2005-3 Class B
0.533% due 06/15/13

    1,345      1,339

GE Equipment Midticket LLC
Series 2009-1 Class A3
2.340% due 06/17/13

    3,180      3,223

GMAC Mortgage Corp. Loan Trust
Series 2007-HE2 Class A2
6.054% due 12/25/37

    3,328      1,759

Series 2007-HE3 Class 1A1
7.000% due 09/25/37

    1,061      618

Series 2007-HE3 Class 2A1
7.000% due 09/25/37

    1,255      583

Green Tree (Þ)
Series 2008-MH1 Class A3
8.970% due 04/25/38

    6,361      6,564

Green Tree Financial Corp.
Series 1994-1 Class A5
7.650% due 04/15/19

    2,995      3,003

Series 1994-3 Class A5
8.400% due 06/15/19

    1,663      1,682

Series 1994-5 Class A5
8.300% due 11/15/19

    1,968      1,935

GSAA Trust
Series 2006-2 Class 2A3 (Ê)
0.501% due 12/25/35

    3,270      2,419

Series 2006-4 Class 1A2
5.993% due 03/25/36

    364      44

Series 2006-4 Class 3A1 (Ê)
6.078% due 03/25/36

    19,068      11,894

GSAMP Trust (Ê)
Series 2003-HE2 Class M1
1.206% due 08/25/33

    597      365

Series 2007-FM1 Class A2A
0.301% due 12/25/36

    466      323

Series 2007-H1 Class M1
0.571% due 01/25/47

    3,621      60

Harley-Davidson Motorcycle Trust
Series 2009-2 Class A2
2.130% due 07/15/12

    1,895      1,908

Series 2009-2 Class A3
2.850% due 03/15/14

    6,720      6,867

HFC Home Equity Loan Asset Backed Certificates (Ê)
Series 2005-1 Class A
0.521% due 01/20/34

    2,420      2,176

Series 2006-2 Class A1
0.381% due 03/20/36

    5,137      4,755

Series 2007-1 Class AS
0.431% due 03/20/36

    4,460      3,922

Series 2007-2 Class A1V
0.321% due 07/20/36

    472      460

Series 2007-2 Class A3V
0.451% due 07/20/36

    5,360      4,478

Series 2007-3 Class A1
1.033% due 11/20/36

    507      493

 

Russell Strategic Bond Fund   85

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2007-3 Class APT
1.433% due 11/20/36

    5,327      4,834

Home Equity Asset Trust (Ê)
Series 2005-5 Class 2A2
0.481% due 11/25/35

    2,080      2,011

Series 2005-7 Class M1
0.681% due 01/25/36

    6,285      2,151

Series 2006-4 Class M3
0.591% due 08/25/36

    1,267      3

Series 2006-7 Class 2A3
0.381% due 01/25/37

    2,650      456

Home Equity Loan Trust (Ê)
Series 2007-FRE Class 2AV1
0.361% due 04/25/37

    8,654      6,662

Honda Auto Receivables Owner Trust
Series 2009-2 Class A3
2.790% due 01/15/13

    2,850      2,915

Household Automotive Trust
Series 2005-3 Class A4
4.940% due 11/19/12

    3,169      3,187

Series 2006-1 Class A3
5.430% due 06/17/11

    630      633

HSI Asset Securitization Corp. Trust (Ê)
Series 2006-HE2 Class 2A1
0.281% due 12/25/36

    259      207

Series 2006-HE2 Class 2A2
0.341% due 12/25/36

    1,830      683

Indymac Residential Asset Backed Trust (Ê)
Series 2006-E Class 2A3
0.401% due 04/25/37

    7,930      3,244

Series 2006-H2 Class A
0.381% due 06/28/36

    1,478      585

IXIS Real Estate Capital Trust (Ê)
Series 2006-HE1 Class A3
0.431% due 03/25/36

    723      602

Series 2006-HE2 Class A3
0.391% due 08/25/36

    1,845      772

JPMorgan Mortgage Acquisition Corp.
Series 2006-WF1 Class M1
6.240% due 07/25/36

    1,200      48

Series 2006-WMC Class A2 (Ê)
0.281% due 08/25/36

    3      3

Series 2006-WMC Class A3 (Ê)
0.351% due 03/25/36

    22      22

Series 2007-CH2 Class AV4 (Ê)
0.381% due 11/25/37

    22,370      9,726

Series 2007-CH5 Class A2 (Ê)
0.281% due 05/25/37

    2,483      2,276

Series 2007-HE1 Class AV1 (Ê)
0.291% due 03/25/47

    235      170

Lehman XS Trust (Ê)
Series 2005-1 Class 2A2
1.731% due 07/25/35

    525      328

Series 2005-5N Class 1A1
0.531% due 11/25/35

    607      393
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2005-5N Class 3A1A
0.531% due 11/25/35

    2,001      1,276

Series 2005-7N Class 1A1A
0.501% due 12/25/35

    6,058      4,037

Series 2005-9N Class 1A1
0.501% due 02/25/36

    1,160      606

Series 2005-9N Class 1A2
0.581% due 02/25/36

    6,453      1,566

Series 2006-4N Class A2A
0.451% due 04/25/46

    3,600      1,620

Series 2006-11 Class 2A1
0.361% due 06/25/46

    2,406      1,904

Series 2006-12N Class A1A2
0.351% due 08/25/46

    60      59

Series 2006-16N Class A1A
0.311% due 11/25/46

    366      364

Series 2006-16N Class A4A
0.421% due 11/25/46

    3,714      1,848

Long Beach Mortgage Loan Trust (Ê)
Series 2002-5 Class M1
1.476% due 11/25/32

    3,038      2,327

Series 2003-3 Class M1
1.356% due 07/25/33

    3,890      2,959

Series 2004-4 Class 1A1

0.511% due 10/25/34

    39      31

Series 2004-6 Class A3
0.881% due 11/25/34

    2,330      1,451

Series 2005-3 Class 2A2
0.511% due 08/25/45

    1,201      1,125

Mastr Asset Backed Securities Trust (Ê)
Series 2003-WMC Class M2
2.706% due 08/25/33

    534      300

Series 2005-WMC Class M1
0.651% due 03/25/35

    1,610      1,588

Series 2006-AB1 Class A2
0.461% due 02/25/36

    2,378      2,048

Series 2006-NC2 Class A4
0.381% due 08/25/36

    9,000      3,309

Series 2007-HE1 Class A1
0.311% due 05/25/37

    607      562

Merrill Lynch First Franklin Mortgage Loan Trust (Ê)
Series 2007-4 Class 2A1
0.291% due 07/25/37

    3,389      3,227

Mid-State Trust
Series 2003-11 Class A1
4.864% due 07/15/38

    161      146

Series 2004-1 Class A
6.005% due 08/15/37

    188      175

Series 2005-1 Class A
5.745% due 01/15/40

    254      242

Series 2006-1 Class A (Þ)
5.787% due 10/15/40

    846      801

Morgan Stanley ABS Capital I (Ê)
Series 2003-NC8 Class M1
1.281% due 09/25/33

    2,942      2,209

 

86   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2003-NC8 Class M3
3.381% due 09/25/33

    270      59

Series 2006-HE1 Class A3
0.411% due 01/25/36

    4,966      4,414

Series 2006-HE2 Class M1
0.561% due 03/25/36

    10,623      170

Series 2006-HE2 Class M2
0.581% due 03/25/36

    1,283      4

Series 2006-HE3 Class A2C
0.391% due 04/25/36

    1,554      1,024

Series 2006-HE3 Class M2
0.531% due 04/25/36

    12,735      30

Series 2006-HE4 Class A3
0.381% due 06/25/36

    833      568

Series 2006-HE5 Class A2B
0.331% due 08/25/36

    461      451

Series 2006-HE5 Class A2C
0.371% due 08/25/36

    6,480      3,704

Series 2006-HE6 Class A2B
0.331% due 09/25/36

    2,931      2,598

Series 2006-HE6 Class A2C
0.381% due 09/25/36

    9,465      3,544

Series 2006-HE7 Class A2A

0.281% due 09/25/36

    220      219

Series 2006-HE8 Class A2C

0.371% due 10/25/36

    4,635      1,990

Series 2006-NC2 Class A2D
0.521% due 02/25/36

    11,837      4,405

Series 2006-NC5 Class A2A
0.271% due 10/25/36

    1,042      1,025

Series 2006-NC5 Class A2C
0.381% due 10/25/36

    610      223

Series 2006-WMC Class A2C
0.381% due 07/25/36

    11,670      4,293

Series 2006-WMC Class A2FP
0.281% due 07/25/36

    65      32

Series 2007-HE2 Class A2A
0.271% due 01/25/37

    870      839

Series 2007-NC2 Class A2A
0.341% due 02/25/37

    504      457

Series 2007-NC3 Class A2A
0.291% due 05/25/37

    1,224      1,124

Morgan Stanley Home Equity Loan Trust (Ê)
Series 2007-1 Class A1
0.281% due 12/25/36

    1,548      1,506

Morgan Stanley IXIS Real Estate Capital Trust (Ê)
Series 2006-2 Class A1
0.281% due 11/25/36

    46      45

Series 2006-2 Class A3
0.381% due 11/25/36

    9,980      3,609

Morgan Stanley Mortgage Loan Trust (Ê)
Series 2006-12X Class A1
0.351% due 10/25/36

    53      53
     Principal
Amount ($)
or Shares		      Market
Value
$

Nationstar Home Equity Loan Trust (Ê)
Series 2007-A Class AV4
0.461% due 03/25/37

    6,789      3,171

New Century Home Equity Loan Trust (Ê)
Series 2004-4 Class M2
0.761% due 02/25/35

    2,100      1,405

Series 2006-1 Class M2
0.591% due 05/25/36

    4,114      50

Nissan Auto Receivables Owner Trust
Series 2008-A Class A3
3.890% due 08/15/11

    302      305

Series 2009-A Class A3
3.200% due 02/15/13

    1,915      1,972

Nissan Master Owner Trust Receivables (Ê)(Å)
Series 2010-AA Class A
1.378% due 01/15/15

    6,300      6,300

Option One Mortgage Loan Trust (Ê)
Series 2003-2 Class M2
2.781% due 04/25/33

    340      103

Series 2003-3 Class M3
3.231% due 06/25/33

    180      41

Series 2003-4 Class M2
2.706% due 07/25/33

    201      53

Series 2005-2 Class A5
0.561% due 05/25/35

    1,353      1,316

Series 2005-4 Class A3
0.491% due 11/25/35

    282      264

Series 2006-1 Class 2A2
0.361% due 01/25/36

    41      41

Series 2007-1 Class 2A1
0.281% due 01/25/37

    51      50

Series 2007-2 Class 3A1
0.321% due 03/25/37

    362      351

Park Place Securities, Inc. (Ê)
Series 2004-MCW Class A1
0.543% due 10/25/34

    756      684

Series 2004-WHQ Class A3E
0.651% due 02/25/35

    1,219      1,195

Series 2005-WCW Class M1
0.681% due 09/25/35

    2,080      1,092

Series 2005-WHQ Class A2C
0.481% due 09/25/35

    1,603      1,590

Series 2005-WHQ Class A2D
0.561% due 06/25/35

    1,167      1,147

Popular ABS Mortgage Pass-Through Trust
Series 2005-6 Class A3
5.680% due 01/25/36

    1,542      1,430

Series 2005-6 Class A5
6.085% due 01/25/36

    7,830      4,182

Providian Master Note Trust (Ê)(Þ)
Series 2006-C1A Class C1
0.782% due 03/15/15

    8,080      7,997

Renaissance Home Equity Loan Trust
Series 2005-1 Class M1
5.357% due 05/25/35

    817      347

 

Russell Strategic Bond Fund   87

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2005-2 Class AF4
4.934% due 08/25/35

    815      665

Series 2005-4 Class A3

5.565% due 02/25/36

    267      246

Series 2006-1 Class AF3

5.608% due 05/25/36

    180      152

Series 2006-1 Class AF6
5.746% due 05/25/36

    1,714      1,298

Series 2006-2 Class AF2

5.762% due 08/25/36

    326      320

Series 2007-1 Class AF2
5.512% due 04/25/37

    6,020      3,116

Series 2007-2 Class AF2
5.675% due 06/25/37

    1,815      966

Residential Asset Mortgage Products, Inc.
Series 2003-RS1 Class AI6A
5.980% due 12/25/33

    1,251      1,046

Series 2005-RS2 Class AII3 (Ê)
0.581% due 02/25/35

    1,419      1,373

Series 2007-RS2 Class A1 (Ê)

0.351% due 05/25/37

    319      298

Residential Asset Securities Corp.
Series 2001-KS3 Class AII (Ê)
0.691% due 09/25/31

    155      100

Series 2003-KS2 Class MI1
4.800% due 04/25/33

    1,231      493

Series 2003-KS2 Class MI3
6.100% due 04/25/33

    545      133

Series 2003-KS4 Class AIIB (Ê)
0.811% due 06/25/33

    264      133

Series 2005-AHL Class A2 (Ê)
0.501% due 07/25/35

    1,627      1,549

Series 2005-KS5 Class M1 (Ê)
0.641% due 06/25/35

    1,220      1,202

Series 2006-KS3 Class AI3 (Ê)
0.401% due 04/25/36

    628      580

Series 2006-KS7 Class A2 (Ê)
0.331% due 09/25/36

    310      299

Series 2007-KS3 Class AI1 (Ê)
0.341% due 04/25/37

    151      149

Saxon Asset Securities Trust (Ê)
Series 2005-4 Class A2C
0.481% due 11/25/37

    1,767      1,712

SBI Heloc Trust (Ê)(Þ)
Series 2006-1A Class 1A2A
0.401% due 08/25/36

    116      111

Securitized Asset Backed Receivables LLC Trust (Ê)
Series 2005-FR5 Class A1A
0.521% due 08/25/35

    2,557      2,407

Series 2005-HE1 Class A1A (Þ)
0.531% due 10/25/35

    1,354      1,333

Series 2006-HE1 Class M1
0.531% due 07/25/36

    2,694      7

Series 2007-BR2 Class A2
0.461% due 02/25/37

    4,166      1,911
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2007-HE1 Class A2A
0.291% due 12/25/36

    549      238

Series 2007-NC1 Class A2B
0.381% due 12/25/36

    9,135      3,412

SG Mortgage Securities Trust (Ê)
Series 2006-FRE Class A2B
0.411% due 02/25/36

    2,218      1,107

Series 2006-OPT Class A3C
0.381% due 10/25/36

    15,040      7,058

SLM Student Loan Trust (Ê)
Series 2006-8 Class A2
0.249% due 10/25/16

    995      994

Series 2007-3 Class A1
0.239% due 10/27/14

    183      182

Series 2008-2 Class A1

0.549% due 01/25/15

    118      118

Series 2008-7 Class A2
0.749% due 10/25/17

    33,000      32,940

Small Business Administration Participation Certificates
Series 2004-20F Class 1
5.520% due 06/01/24

    244      260

Series 2005-20G Class 1
4.750% due 07/01/25

    3,128      3,304

Soundview Home Equity Loan Trust (Ê)
Series 2005-4 Class 2A3
0.461% due 03/25/36

    212      210

Series 2005-OPT Class 2A3
0.491% due 12/25/35

    4,311      3,317

Series 2006-EQ2 Class A3
0.391% due 01/25/37

    17,529      7,251

Series 2006-OPT Class 2A4
0.471% due 07/25/36

    3,325      1,247

Series 2006-OPT Class M3
0.551% due 07/25/36

    2,121      20

Series 2007-NS1 Class A1
0.351% due 01/25/37

    2,338      2,239

Series 2007-OPT Class 2A1
0.311% due 06/25/37

    1,225      1,076

Series 2007-OPT Class 2A2
0.361% due 07/25/37

    4,200      2,194

Specialty Underwriting & Residential Finance (Ê)
Series 2005-BC3 Class A2C
0.601% due 06/25/36

    5,687      5,649

Series 2005-BC4 Class A2B
0.461% due 09/25/36

    1,265      1,190

Series 2006-AB2 Class A2B
0.331% due 06/25/37

    5      5

Series 2006-BC3 Class M2
0.521% due 06/25/37

    1,485      4

Series 2006-BC5 Class A2D
0.381% due 11/25/37

    13,185      4,959

Structured Asset Investment Loan Trust (Ê)
Series 2003-BC1 Class 3A
0.911% due 11/25/33

    12      11

 

88   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2003-BC1 Class A2
0.911% due 01/25/33

    3,904      3,079

Series 2006-BNC Class A2
0.271% due 09/25/36

    149      148

Series 2006-BNC Class A3
0.381% due 09/25/36

    13,040      7,131

Structured Asset Securities Corp.
Series 2001-SB1 Class A2
3.375% due 08/25/31

    640      516

Series 2005-2XS Class 1A2A
4.510% due 02/25/35

    569      537

Series 2005-4XS Class 1A2B
4.670% due 03/25/35

    192      172

Series 2005-GEL Class A (Ê)
0.581% due 12/25/34

    265      258

Series 2006-BC3 Class A2 (Ê)
0.281% due 10/25/36

    1,593      1,574

Series 2006-GEL Class A1 (Ê)(Þ)
0.371% due 11/25/35

    1,213      1,180

Series 2006-WF2 Class A3 (Ê)
0.381% due 07/25/36

    8,300      7,472

Series 2007-BC3 Class 2A2 (Ê)
0.371% due 05/25/47

    14,428      8,811

USAA Auto Owner Trust
Series 2006-2 Class A4
5.370% due 02/15/12

    213      215

Washington Mutual Asset-Backed Certificates (Ê)
Series 2006-HE5 Class 2A1
0.291% due 10/25/36

    1,131      771

Series 2007-HE3 Class 2A1
0.321% due 05/25/37

    885      794

Washington Mutual Master Note Trust (Ê)(Þ)
Series 2006-C2A Class C2
0.732% due 08/15/15

    90      89

Series 2007-C1 Class C1
0.632% due 05/15/14

    810      808

Wells Fargo Home Equity Trust (Ê)(Å)
Series 2005-3 Class AI1A
0.501% due 11/25/35

    189      186

World Omni Auto Receivables Trust
Series 2009-A Class A3
3.330% due 05/15/13

    3,545      3,644
         
        728,825
         
Corporate Bonds and Notes - 19.9%     

ACE Capital Trust II
9.700% due 04/01/30

    1,425      1,688

AES Corp. (The)(Þ)
8.750% due 05/15/13

    7,650      7,803

Aetna, Inc.(Ñ)
6.500% due 09/15/18

    3,190      3,612

Agilent Technologies, Inc.
5.500% due 09/14/15

    4,830      5,179
     Principal
Amount ($)
or Shares		      Market
Value
$

Allied Waste NA, Inc. (Ñ)
Series B
7.125% due 05/15/16

    660      711

Allstate Life Global Funding Trusts
5.375% due 04/30/13

    2,200      2,387

Alltel Corp.
7.000% due 07/01/12

    1,955      2,184

6.800% due 05/01/29

    2,465      2,701

7.875% due 07/01/32

    910      1,105

Altria Group, Inc.
7.750% due 02/06/14 (Ñ)

    4,360      5,019

9.700% due 11/10/18

    2,075      2,599

10.200% due 02/06/39

    1,580      2,127

American Airlines Pass Through Trust 2001-02
Series 01-2
6.978% due 10/01/12

    912      907

American Airlines Pass Through Trust 2009-1A (Ñ)
10.375% due 07/02/19

    4,966      5,636

American Express Bank FSB
Series BKNT
5.500% due 04/16/13

    700      749

6.000% due 09/13/17

    600      638

American Express Centurion Bank
Series BKN1
6.000% due 09/13/17

    600      638

American Express Co.
7.000% due 03/19/18

    400      449

8.125% due 05/20/19

    500      605

American Express Credit Corp.
5.875% due 05/02/13 (Ñ)

    2,000      2,168

Series C

7.300% due 08/20/13

    915      1,040

American General Finance Corp.
6.900% due 12/15/17

    800      584

American International Group, Inc.
5.050% due 10/01/15 (Ñ)

    400      333

5.850% due 01/16/18 (Ñ)

    9,970      8,004

6.250% due 03/15/87

    3,700      2,164

Series WI (Ñ)
8.250% due 08/15/18

    9,100      8,349

Americo Life, Inc. (Þ)
7.875% due 05/01/13

    350      335

Ameriprise Financial, Inc.
7.518% due 06/01/66

    10,115      9,508

AmerisourceBergen Corp.
5.875% due 09/15/15

    15      17

Series WI
5.625% due 09/15/12

    4,585      4,973

Amgen, Inc. (Ñ)
6.150% due 06/01/18

    5,600      6,264

Amsouth Bank (Ñ)
Series AI
4.850% due 04/01/13

    1,360      1,304

Anadarko Petroleum Corp.
5.950% due 09/15/16

    3,299      3,568

 

Russell Strategic Bond Fund   89

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Anglo American Capital PLC (Ñ)(Å)
9.375% due 04/08/14

    1,075      1,302

Anheuser-Busch InBev Worldwide, Inc. (Þ)
7.200% due 01/15/14

    2,100      2,401

4.125% due 01/15/15

    8,990      9,238

7.750% due 01/15/19

    28,435      33,727

5.375% due 01/15/20

    5,400      5,538

Appalachian Power Co.
Series O
5.650% due 08/15/12

    980      1,064

Arizona Public Service Co.
5.800% due 06/30/14

    1,675      1,823

6.250% due 08/01/16

    1,350      1,469

8.750% due 03/01/19

    1,250      1,521

AT&T Corp.
7.300% due 11/15/11

    475      525

8.000% due 11/15/31 (Ñ)

    3,040      3,757

AT&T, Inc.
4.950% due 01/15/13

    100      108

4.850% due 02/15/14 (Ñ)

    1,140      1,233

5.500% due 02/01/18 (Ñ)

    100      106

6.300% due 01/15/38

    3,325      3,396

6.400% due 05/15/38

    3,375      3,483

Bank of America Capital Trust XV (Ê)
1.056% due 06/01/56

    3,800      2,427

Bank of America Corp.
6.500% due 08/01/16

    3,500      3,789

5.625% due 10/14/16

    610      633

6.000% due 09/01/17

    5,165      5,358

5.750% due 12/01/17

    6,545      6,675

7.625% due 06/01/19 (Ñ)

    3,275      3,747

Bank of America NA
Series BKNT
0.534% due 06/15/16 (Ê)

    3,100      2,811

0.554% due 06/15/17 (Ê)

    4,175      3,735

6.100% due 06/15/17 (Ñ)

    1,000      1,031

6.000% due 10/15/36 (Ñ)

    500      478

BankAmerica Capital III (Ê)
Series*
0.821% due 01/15/27

    2,300      1,563

BankBoston Capital Trust III (Ê)
1.004% due 06/15/27

    3,500      2,387

Barnett Capital III (Ê)
0.874% due 02/01/27

    1,250      863

Baxter International, Inc.
4.000% due 03/01/14

    1,180      1,239

BB&T Corp.
3.850% due 07/27/12

    2,425      2,536

Bear Stearns Cos. LLC (The)
0.460% due 08/15/11 (Ê)

    300      300

7.250% due 02/01/18

    7,325      8,400

BellSouth Telecommunications, Inc.
7.000% due 12/01/95

    2,865      2,924

Best Buy Co., Inc.
6.750% due 07/15/13

    5,545      6,204

BNP Paribas Capital Trust (ƒ)(Å)
9.003% due 12/29/49

    3,450      3,484
    Principal
Amount ($)
or Shares		      Market
Value
$

Boardwalk Pipelines, LP
5.875% due 11/15/16

   3,250      3,487

Boston Scientific Corp.
4.500% due 01/15/15

   7,820      7,878

6.400% due 06/15/16

   2,570      2,770

6.000% due 01/15/20

   7,125      7,198

7.000% due 11/15/35

   750      749

7.375% due 01/15/40

   1,400      1,491

Buckeye Partners, LP (Ñ)
5.500% due 08/15/19

   4,000      4,056

Burlington Northern and Santa Fe Railway Co.
2005-4 Pass Through Trust
4.967% due 04/01/23

   195      211

Burlington Northern Santa Fe Corp.
6.875% due 12/01/27

   160      177

6.750% due 03/15/29 (Ñ)

   110      123

Capital One Financial Corp. (Ñ)
7.375% due 05/23/14

   1,964      2,248

Capmark Financial Group, Inc.
7.800% due 05/10/17

   3,445      967

7.375% due 05/10/49

   1,000      280

CareFusion Corp. (Þ)
5.125% due 08/01/14

   1,435      1,543

6.375% due 08/01/19

   4,475      4,921

Carolina Power & Light Co.
6.500% due 07/15/12

   105      116

5.300% due 01/15/19 (Ñ)

   1,760      1,872

Catlin Insurance Co., Ltd. (ƒ)(Þ)
7.249% due 12/31/49

   775      624

CC Holdings GS V LLC/Crown Castle GS III Corp. (Þ)
7.750% due 05/01/17

   845      910

CEDC Finance Corp.
International, Inc. (Ñ)(Þ)
9.125% due 12/01/16

   1,750      1,838

Cellco Partnership / Verizon Wireless Capital LLC
8.500% due 11/15/18

   5,280      6,662

Cemex Finance LLC (Ñ)(Þ)
9.500% due 12/14/16

   4,340      4,416

Cenovus Energy, Inc. (Þ)
4.500% due 09/15/14

   1,520      1,600

CenterPoint Energy Houston Electric LLC
Series J2
5.700% due 03/15/13

   605      654

CenterPoint Energy Resources Corp.
6.125% due 11/01/17

   860      912

6.250% due 02/01/37

   225      225

Series B
7.875% due 04/01/13

   3,970      4,553

Charter Communications Operating LLC (Ñ)(Þ)
10.875% due 09/15/14

   820      918

Chase Capital III (Ê)
Series C
0.806% due 03/01/27

   2,740      1,952

Chesapeake Energy Corp.
7.625% due 07/15/13

   1,375      1,440

 

90   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

7.000% due 08/15/14

    3,990      4,020

6.875% due 01/15/16 (Ñ)

    840      827

CHS/Community Health Systems, Inc.
Series WI
8.875% due 07/15/15

    3,540      3,659

Chubb Corp.
6.375% due 03/29/67

    2,450      2,352

Series 1
6.500% due 05/15/38

    1,175      1,319

Citibank NA
1.875% due 06/04/12 (Ñ)

    1,400      1,420

Series FXD
1.875% due 05/07/12

    2,700      2,744

Citigroup Capital XXI
8.300% due 12/21/77

    8,930      8,305

Citigroup Funding, Inc.
2.250% due 12/10/12

    5,400      5,492

Citigroup, Inc.
2.125% due 04/30/12

    2,700      2,754

5.500% due 08/27/12

    2,500      2,639

5.625% due 08/27/12

    2,835      2,976

5.300% due 10/17/12

    1,000      1,053

5.500% due 04/11/13

    7,900      8,298

5.850% due 07/02/13

    700      740

6.375% due 08/12/14

    4,150      4,404

5.000% due 09/15/14

    6,525      6,386

0.529% due 11/05/14 (Ê)(Ñ)

    3,000      2,736

6.010% due 01/15/15

    13,085      13,618

4.700% due 05/29/15

    350      350

5.850% due 08/02/16 (Ñ)

    150      154

6.000% due 08/15/17

    4,500      4,538

6.125% due 11/21/17

    6,395      6,468

6.125% due 05/15/18 (Ñ)

    200      201

8.500% due 05/22/19 (Ñ)

    500      583

6.125% due 08/25/36

    1,900      1,612

5.875% due 05/29/37

    1,775      1,582

6.875% due 03/05/38

    1,075      1,073

8.125% due 07/15/39

    8,469      9,604

Columbus Southern Power Co.
Series C
5.500% due 03/01/13

    435      472

Comcast Cable Communications Holdings, Inc.
9.455% due 11/15/22

    975      1,308

Comcast Cable Holdings LLC
9.800% due 02/01/12

    1,660      1,891

Comcast Corp.
5.500% due 03/15/11

    1,825      1,912

5.875% due 02/15/18 (Ñ)

    300      320

6.500% due 11/15/35

    3,380      3,528

6.450% due 03/15/37

    300      310

Comcast Holdings Corp.
10.625% due 07/15/12

    4,800      5,722

Commonwealth Edison Co.
6.150% due 09/15/17

    1,435      1,600

5.800% due 03/15/18

    2,175      2,356

6.950% due 07/15/18

    400      440
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 100
5.875% due 02/01/33

    1,275      1,302

Series 105
5.400% due 12/15/11

    850      910

ConocoPhillips
6.000% due 01/15/20

    5,000      5,592

Constellation Brands, Inc. (Ñ)
Series B
8.125% due 01/15/12

    2,200      2,200

Continental Airlines, Inc.
9.000% due 07/08/16

    3,429      3,704

Series 01A2 (Ñ)
6.503% due 12/15/12

    3,925      3,984

Series 071A
5.983% due 04/19/22

    2,200      2,128

Series 2002-1 Class G2
6.563% due 08/15/13

    4,180      4,081

Series A
7.250% due 11/10/19

    2,000      2,040

Countrywide Financial Corp.
5.125% due 02/17/11

    100      162

Series MTN
5.800% due 06/07/12

    500      536

COX Communications, Inc. (Þ)
6.250% due 06/01/18

    2,800      3,024

Credit Suisse USA, Inc. (Ñ)
5.500% due 08/15/13

    380      420

4.875% due 01/15/15

    1,200      1,273

Crown Castle Towers LLC (Å)
6.113% due 01/15/20

    4,255      4,412

CSC Holdings LLC Series B (Ñ)
7.625% due 04/01/11

    750      780

Series WI
6.750% due 04/15/12

    85      88

CVS Caremark Corp.
6.125% due 09/15/39

    4,790      4,741

CVS Pass-Through Trust (Þ)
7.507% due 01/10/32

    3,370      3,632

DCP Midstream LLC
6.875% due 02/01/11

    110      115

Delta Air Lines, Inc.
9.500% due 09/15/14 (Þ)

    5,740      5,984

Series 00A1
7.379% due 11/18/11

    291      291

Series 00A2 (Ñ)

7.570% due 05/18/12

    9,445      9,610

Series 01A1

6.619% due 09/18/12

    359      357

Series 01A2
7.111% due 03/18/13

    750      758

Series 071A
6.821% due 02/10/24

    2,727      2,665

Series A
7.750% due 12/17/19

    4,000      4,210

Developers Diversified Realty Corp.
5.250% due 04/15/11

    120      119

5.375% due 10/15/12

    3,390      3,300

 

Russell Strategic Bond Fund   91

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

DirecTV Holdings LLC (Þ)
4.750% due 10/01/14

    4,025      4,198

5.875% due 10/01/19

    2,000      2,092

Discover Bank
Series BKNT
8.700% due 11/18/19

    3,225      3,522

Discover Financial Services
10.250% due 07/15/19

    3,675      4,388

DISH DBS Corp.
7.125% due 02/01/16

    2,000      2,005

Dolphin Energy, Ltd. (Þ)
5.888% due 06/15/19

    4,455      4,455

Dominion Resources, Inc.
Series 06-B
6.300% due 09/30/66

    3,370      3,134

Dow Chemical Co. (The)
7.600% due 05/15/14

    4,100      4,717

5.900% due 02/15/15

    1,750      1,898

DPL, Inc.
6.875% due 09/01/11

    2,116      2,288

Dynegy Roseton/Danskammer Pass Through Trust Series B
Series B
7.670% due 11/08/16

    6,600      6,534

E*Trade Financial Corp.
12.500% due 11/30/17

    1,166      1,347

Series A (Ñ)
Zero coupon due 08/31/19

    1,680      2,484

Edison Mission Energy (Ñ)
7.000% due 05/15/17

    8,070      6,375

El Paso Corp.
12.000% due 12/12/13

    635      756

8.250% due 02/15/16

    830      894

Series* (Ñ)
9.625% due 05/15/12

    300      311

Series GMTN
8.050% due 10/15/30

    300      300

El Paso Natural Gas Co.
7.500% due 11/15/26

    1,425      1,568

Energy Future Holdings Corp.
10.875% due 11/01/17

    2,125      1,679

Energy Transfer Partners, LP
5.950% due 02/01/15

    3,900      4,224

9.700% due 03/15/19

    1,150      1,463

Entergy Gulf States Louisiana LLC (Ñ)
6.000% due 05/01/18

    2,645      2,856

Enterprise Products Operating LLC
5.900% due 04/15/13

    1,425      1,552

6.650% due 04/15/18

    3,625      4,008

5.250% due 01/31/20 (Ñ)

    2,445      2,491

6.125% due 10/15/39

    5,440      5,377

Series A
8.375% due 08/01/66

    1,550      1,540

Series B
7.034% due 01/15/68

    3,460      3,270

Express Scripts, Inc. (Ñ)
6.250% due 06/15/14

    2,935      3,289
     Principal
Amount ($)
or Shares		      Market
Value
$

Farmers Exchange Capital (Þ)
7.050% due 07/15/28

    5,925      5,280

Farmers Insurance Exchange (Þ)
6.000% due 08/01/14

    1,625      1,555

Federal Express Corp.
7.600% due 07/01/97

    765      747

First Data Corp.
10.550% due 09/24/15

    2,500      2,125

First Union Institutional Capital II
7.850% due 01/01/27

    2,320      2,362

FirstEnergy Corp.
Series B
6.450% due 11/15/11

    187      202

Series C
7.375% due 11/15/31

    2,655      2,988

Ford Motor Co.
7.125% due 11/15/25

    100      83

6.375% due 02/01/29

    100      77

Ford Motor Credit Co. LLC
7.375% due 02/01/11 (Ñ)

    2,000      2,035

9.875% due 08/10/11

    4,440      4,645

3.001% due 01/13/12 (Ê)(Ñ)

    1,000      945

7.500% due 08/01/12 (Ñ)

    2,025      2,051

8.125% due 01/15/20 (Ñ)

    1,570      1,581

Fortune Brands, Inc.
3.000% due 06/01/12

    4,880      4,876

FPL Energy Wind Funding LLC (Þ)
6.876% due 06/27/17

    3,428      3,188

Freeport-McMoRan Copper & Gold, Inc.
8.375% due 04/01/17

    3,900      4,241

General Electric Capital Corp.
2.800% due 01/08/13 (Ñ)

    3,215      3,217

1.167% due 05/22/13 (Ê)

    3,740      3,716

5.900% due 05/13/14 (Ñ)

    5,000      5,452

0.450% due 01/08/16 (Ê)(Ñ)

    1,200      1,103

5.500% due 01/08/20

    9,625      9,532

5.875% due 01/14/38

    4,155      3,847

6.375% due 11/15/67

    27,500      24,166

Series EMTN (Ê)

0.399% due 03/20/14

    2,000      1,861

Series GMTN

5.500% due 04/28/11 (Ñ)

    400      421

2.000% due 09/28/12

    10,900      11,043

2.625% due 12/28/12 (Ñ)

    17,000      17,475

Series MTNA (Ê)
0.514% due 09/15/14

    7,000      6,571

General Electric Co.
5.250% due 12/06/17

    2,390      2,496

GlaxoSmithKline Capital, Inc.
4.850% due 05/15/13

    6,900      7,495

GMAC, Inc.
6.875% due 09/15/11 (Ñ)

    7,600      7,584

6.875% due 08/28/12

    1,900      1,874

7.500% due 12/31/13

    10,450      10,398

Series*

7.250% due 03/02/11 (Å)

    5,375      5,415

6.875% due 09/15/11 (Å)

    1,315      1,315

8.000% due 11/01/31

    2,157      2,065

 

92   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Goldman Sachs Group, Inc. (The)
1.029% due 12/05/11 (Ê)

    12,230      12,425

0.458% due 02/06/12 (Ê)

    1,700      1,692

6.000% due 05/01/14 (Ñ)

    2,000      2,191

5.125% due 01/15/15

    4,403      4,636

0.701% due 03/22/16 (Ê)

    1,300      1,221

5.625% due 01/15/17

    9,301      9,539

6.250% due 09/01/17 (Ñ)

    7,900      8,504

7.500% due 02/15/19 (Ñ)

    7,230      8,380

6.750% due 10/01/37

    14,320      14,159

Goodyear Tire & Rubber Co. (The) (Ñ)
8.625% due 12/01/11

    850      880

9.000% due 07/01/15

    750      773

10.500% due 05/15/16

    1,920      2,083

Hanger Orthopedic Group, Inc.
10.250% due 06/01/14

    2,050      2,183

Hasbro, Inc.
6.125% due 05/15/14

    2,225      2,440

6.300% due 09/15/17

    1,330      1,434

HCA, Inc.
8.500% due 04/15/19 (Þ)

    3,480      3,680

7.875% due 02/15/20 (Þ)

    5,335      5,482

Series WI
9.125% due 11/15/14

    1,750      1,824

HCP, Inc.
5.950% due 09/15/11

    6,845      7,188

Health Net, Inc.
6.375% due 06/01/17

    1,775      1,589

Healthsouth Corp.
10.750% due 06/15/16

    2,975      3,220

Historic TW, Inc.
8.050% due 01/15/16

    2,900      3,249

HRPT Properties Trust
5.750% due 02/15/14

    2,710      2,747

HUB International Holdings, Inc. (Þ)
10.250% due 06/15/15

    6,180      5,794

Humana, Inc.
8.150% due 06/15/38

    3,226      3,388

Indiantown Cogeneration, LP
Series A-10
9.770% due 12/15/20

    2,890      3,133

International Business Machines Corp.
5.700% due 09/14/17

    600      666

International Lease Finance Corp.
4.950% due 02/01/11

    1,775      1,672

5.450% due 03/24/11

    2,370      2,236

5.750% due 06/15/11

    9,150      8,577

International Paper Co.
7.950% due 06/15/18

    1,475      1,709

7.500% due 08/15/21

    3,575      4,058

7.300% due 11/15/39

    3,560      3,839

Jabil Circuit, Inc.
7.750% due 07/15/16

    2,360      2,513

JBS USA LLC/JBS USA Finance, Inc. (Þ)
11.625% due 05/01/14

    750      844

Jersey Central Power & Light Co.
5.625% due 05/01/16

    1,515      1,598
     Principal
Amount ($)
or Shares		      Market
Value
$

JPMorgan Chase & Co.
5.600% due 06/01/11

    235      249

5.375% due 01/15/14 (Ñ)

    2,565      2,753

5.150% due 10/01/15 (Ñ)

    3,950      4,215

6.000% due 01/15/18

    9,100      9,832

6.300% due 04/23/19 (Ñ)

    3,535      3,909

6.400% due 05/15/38

    1,663      1,803

Series 1 (Æ)(ƒ)
7.900% due 04/29/49

    9,575      9,808

JPMorgan Chase Bank NA
Series AI (Þ)
5.875% due 06/13/16

    240      255

Series BKNT

6.000% due 10/01/17

    4,800      5,151

JPMorgan Chase Capital XIII (Ê)
Series M
1.201% due 09/30/34

    6,050      4,269

JPMorgan Chase Capital XX (Ñ)
Series T
6.550% due 09/15/66

    300      283

JPMorgan Chase Capital XXI (Ê)
Series U
1.199% due 01/15/87

    455      318

JPMorgan Chase Capital XXII
Series V
6.450% due 01/15/87

    1,100      1,026

JPMorgan Chase Capital XXIII (Ê)
1.250% due 05/15/77

    8,880      6,219

Kansas City Southern de Mexico SA de CV (Å)
8.000% due 02/01/18

    1,800      1,773

Kansas City Southern Railway (Ñ)
13.000% due 12/15/13

    1,500      1,755

KCP&L Greater Missouri Operations Co.
11.875% due 07/01/12

    7,475      8,788

Kraft Foods, Inc.
6.125% due 02/01/18

    1,000      1,071

6.125% due 08/23/18

    2,550      2,740

Kroger Co. (The)(Ñ)
3.900% due 10/01/15

    2,295      2,340

L-3 Communications Corp.
Series B
6.375% due 10/15/15

    1,750      1,772

LaBranche & Co., Inc.
11.000% due 05/15/12

    2,015      2,070

Lehman Brothers Holdings, Inc. (Æ)(Ø)
Zero coupon due 07/18/11

    900      186

6.625% due 01/18/12

    770      161

6.200% due 09/26/14

    1,000      209

6.875% due 05/02/18

    1,365      300

Zero coupon due 09/27/27

    1,260      263

Liberty Mutual Group, Inc.
7.000% due 03/07/67 (Þ) 

    6,925      5,567

7.800% due 03/07/87 (Å)

    11,335      9,748

Lincoln National Corp.
6.200% due 12/15/11

    285      298

Lorillard Tobacco Co.
8.125% due 06/23/19

    11,176      12,263

 

Russell Strategic Bond Fund   93

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Lubrizol Corp.
8.875% due 02/01/19

    4,500      5,672

MacDermid, Inc. (Þ)
9.500% due 04/15/17

    3,870      3,909

Macquarie Bank, Ltd. (Þ)
3.300% due 07/17/14

    16,100      16,497

Magellan Midstream Partners, LP (Ñ)
6.550% due 07/15/19

    3,700      4,125

Manufacturers & Traders Trust Co.
5.585% due 12/28/20

    745      658

Marathon Oil Corp. (Ñ)
6.500% due 02/15/14

    1,475      1,660

Massey Energy Co.
3.250% due 08/01/15

    7,630      6,705

Max USA Holdings, Ltd. (Þ)
7.200% due 04/14/17

    2,485      2,580

MBNA Capital B (Ê)
Series B
1.049% due 02/01/27

    2,855      1,950

MBNA Corp.
6.125% due 03/01/13

    2,000      2,154

Medco Health Solutions, Inc.
6.125% due 03/15/13 (Ñ)

    500      546

7.250% due 08/15/13

    4,552      5,194

Medtronic, Inc. (Ñ)
4.500% due 03/15/14

    475      509

Merrill Lynch & Co., Inc.
0.449% due 07/25/11 (Ê)(Ñ)

    1,600      1,587

6.050% due 08/15/12

    6,800      7,347

5.450% due 02/05/13

    2,975      3,166

6.150% due 04/25/13

    3,505      3,792

6.050% due 05/16/16

    3,575      3,647

6.400% due 08/28/17

    2,625      2,747

6.875% due 04/25/18

    12,490      13,484

6.220% due 09/15/26

    1,525      1,464

7.750% due 05/14/38

    1,500      1,650

MetLife Capital Trust X (Þ)
9.250% due 04/08/38

    1,500      1,680

MetLife, Inc.
6.125% due 12/01/11 (Ñ)

    2,870      3,107

6.400% due 12/15/66

    2,200      1,936

Metropolitan Life Global Funding I (Þ)
5.125% due 06/10/14

    3,000      3,214

MGM Mirage (Þ)
10.375% due 05/15/14

    1,620      1,778

Midamerican Funding LLC
6.750% due 03/01/11

    1,200      1,251

Mirant Mid Atlantic Pass Through Trust A
Series A
8.625% due 06/30/12

    3,046      3,138

Monsanto Co. (Ñ)
5.125% due 04/15/18

    5,000      5,332

Morgan Stanley
1.048% due 03/01/13 (Ê)

    2,100      2,769

5.375% due 10/15/15

    7,000      7,395

0.701% due 10/18/16 (Ê)

    5,505      5,043

5.450% due 01/09/17

    2,425      2,510

6.250% due 08/28/17

    1,300      1,386

5.950% due 12/28/17

    2,350      2,450
     Principal
Amount ($)
or Shares		      Market
Value
$

6.625% due 04/01/18

    9,670      10,574

5.625% due 09/23/19

    3,900      3,936

Series GMTN
5.750% due 08/31/12

    1,950      2,115

0.549% due 01/09/14 (Ê)

    3,950      3,791

4.100% due 01/26/15

    4,605      4,581

National City Bank (Ê)
Series BKNT
0.625% due 06/07/17

    7,200      6,394

National City Bank of Kentucky
Series BKNT
6.300% due 02/15/11

    705      728

National City Corp. (Ñ)
4.000% due 02/01/11

    3,800      3,857

Nationwide Financial Services
6.250% due 11/15/11

    660      706

Nationwide Mutual Insurance Co. (Þ)
5.810% due 12/15/24

    7,970      6,748

7.875% due 04/01/33

    2,092      2,017

Navistar International Corp.
8.250% due 11/01/21

    2,795      2,823

NB Capital Trust IV
8.250% due 04/15/27

    701      685

Nevada Power Co.
7.125% due 03/15/19

    1,425      1,632

Series L
5.875% due 01/15/15

    725      790

Series O
6.500% due 05/15/18

    450      495

News America Holdings, Inc.
9.250% due 02/01/13

    25      29

7.900% due 12/01/95

    715      805

8.250% due 10/17/96

    240      271

News America, Inc. (Ñ)
6.900% due 03/01/19

    4,295      4,926

NII Capital Corp. (Þ)
10.000% due 08/15/16

    7,050      7,367

Nisource Finance Corp.
10.750% due 03/15/16

    1,325      1,695

6.400% due 03/15/18

    2,180      2,322

Northrop Grumman Corp. (Ñ)
3.700% due 08/01/14

    760      784

NuStar Logistics, LP
6.050% due 03/15/13

    3,607      3,903

Ohio Power Co.
Series F
5.500% due 02/15/13

    285      310

Oncor Electric Delivery Co. LLC
6.800% due 09/01/18

    5,510      6,191

Pacific Gas & Electric Co.
6.250% due 12/01/13

    1,375      1,542

Panhandle Eastern Pipeline Co., LP
8.125% due 06/01/19

    3,542      4,225

Peabody Energy Corp.
7.875% due 11/01/26

    500      516

Philip Morris International, Inc.
6.875% due 03/17/14

    3,980      4,589

5.650% due 05/16/18 (Ñ)

    3,840      4,093

 

94   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Phoenix Life Insurance Co. (Þ)
7.150% due 12/15/34

    550      264

PNC Bank NA Series BKNT
6.875% due 04/01/18

    2,400      2,674

Polo Ralph Lauren Corp.
4.500% due 10/04/13

    2,050      2,905

Princeton University (Ñ)
4.950% due 03/01/19

    1,160      1,225

Principal Life Income Funding Trusts
5.300% due 04/24/13

    400      427

Progress Energy, Inc.
7.050% due 03/15/19

    2,550      2,897

7.750% due 03/01/31

    275      326

ProLogis
1.875% due 11/15/37

    2,550      2,273

Prudential Financial, Inc.
3.875% due 01/14/15

    5,675      5,720

Prudential Holdings LLC
8.695% due 12/18/23 (Þ)

    5,600      6,087

Series FSA (Ê)(Þ)
1.488% due 12/18/17

    3,500      2,930

Public Service Co. of New Mexico
7.950% due 05/15/18

    3,320      3,509

Puget Sound Energy, Inc.
Series A
6.974% due 06/01/67

    1,500      1,338

QVC, Inc. (Þ)
7.500% due 10/01/19

    2,200      2,255

Qwest Capital Funding, Inc.
7.250% due 02/15/11

    2,125      2,162

Qwest Communications International, Inc.
Series*
7.250% due 02/15/11

    4,570      4,570

Qwest Corp.
7.875% due 09/01/11

    6,750      7,071

7.625% due 06/15/15

    1,000      1,058

8.375% due 05/01/16 (Ñ)

    2,625      2,874

Rabobank Capital Funding II (ƒ)(Þ)
5.260% due 12/31/49

    420      384

Reed Elsevier Capital, Inc.
7.750% due 01/15/14

    3,140      3,638

Reliant Energy Mid-Atlantic Power Holdings LLC
Series B
9.237% due 07/02/17

    3,663      3,910

Rohm and Haas Co.
6.000% due 09/15/17

    100      105

Roper Industries, Inc. (Ñ)
6.250% due 09/01/19

    1,245      1,327

Sabine Pass LNG, LP (Ñ)
7.250% due 11/30/13

    8,590      8,032

Sealy Mattress Co. (Þ)
10.875% due 04/15/16

    250      280

Simon Property Group, LP
5.300% due 05/30/13

    3,720      3,980

6.100% due 05/01/16

    1,955      2,101

10.350% due 04/01/19

    1,250      1,628

5.650% due 02/01/20

    2,800      2,802
     Principal
Amount ($)
or Shares		      Market
Value
$

SLM Corp.
5.400% due 10/25/11

    1,450      1,434

5.125% due 08/27/12

    1,150      1,093

South Carolina Electric & Gas Co.
6.500% due 11/01/18

    1,240      1,441

Southern Copper Corp.
6.375% due 07/27/15 (Ñ)

    1,220      1,300

7.500% due 07/27/35

    6,715      6,785

Southern Union Co.
7.200% due 11/01/66

    8,940      7,957

Sprint Capital Corp.
8.375% due 03/15/12

    1,250      1,272

6.875% due 11/15/28

    2,630      2,065

Staples, Inc.
7.750% due 04/01/11

    2,005      2,152

9.750% due 01/15/14 (Ñ)

    3,695      4,507

Structured Asset Mortgage Investments, Inc. (Ê)
Series 2006-AR5 Class 1A2
0.491% due 05/25/46

    588      164

Symetra Financial Corp.
6.125% due 04/01/16 (Å)

    1,200      1,165

8.300% due 10/15/37 (Þ)

    3,430      2,813

Target Corp.
7.000% due 01/15/38

    100      115

TD Ameritrade Holding Corp.
4.150% due 12/01/14

    8,770      8,810

Tennessee Gas Pipeline Co.
8.000% due 02/01/16

    3,305      3,850

7.000% due 10/15/28

    850      924

8.375% due 06/15/32

    1,250      1,523

Texas Competitive Electric Holdings Co. LLC (Ñ)
10.500% due 11/01/16

    5,492      3,955

Textron, Inc. (Ñ)
6.200% due 03/15/15

    3,235      3,438

7.250% due 10/01/19

    1,795      1,959

Time Warner Cable, Inc.
8.250% due 02/14/14

    1,560      1,853

5.000% due 02/01/20

    4,690      4,579

Time Warner Entertainment Co., LP
Series*
8.375% due 03/15/23

    1,176      1,443

Time Warner, Inc.
5.500% due 11/15/11

    1,015      1,084

Timken Co. (Ñ)
6.000% due 09/15/14

    2,440      2,627

Transatlantic Holdings, Inc.
8.000% due 11/30/39

    2,350      2,391

UBS Preferred Funding Trust V (ƒ)
Series 1
6.243% due 05/29/49

    3,600      2,983

Union Electric Co.
6.400% due 06/15/17

    3,145      3,483

United Air Lines, Inc.
10.400% due 05/01/18

    600      647

 

Russell Strategic Bond Fund   95

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

United Rentals NA, Inc.
6.500% due 02/15/12

    1,000      1,000

UnitedHealth Group, Inc.
5.250% due 03/15/11

    20      21

4.875% due 02/15/13

    400      427

6.000% due 06/15/17

    930      1,017

Series WI
6.500% due 06/15/37

    675      718

US Bank National Associtaion
4.375% due 02/28/17

    1,800      2,444

US Central Federal Credit Union
1.900% due 10/19/12

    4,500      4,540

USB Capital IX (ƒ)
6.189% due 10/29/49

    300      249

USB Realty Corp. (ƒ)(Þ)
6.091% due 12/29/49

    5,500      4,221

Valero Energy Corp.
9.375% due 03/15/19 (Ñ)

    4,185      5,097

10.500% due 03/15/39

    1,160      1,557

Verizon Communications, Inc.
5.250% due 04/15/13

    300      328

8.750% due 11/01/18

    2,670      3,370

6.350% due 04/01/19

    2,270      2,512

8.950% due 03/01/39

    1,370      1,868

Viacom, Inc.
6.250% due 04/30/16

    5,150      5,758

Wachovia Bank NA
Series BKNT
6.600% due 01/15/38

    6,170      6,530

Wachovia Capital Trust III (ƒ)
5.800% due 03/29/49

    8,235      6,366

Wachovia Corp.
0.381% due 10/15/11 (Ê)

    3,800      3,772

5.500% due 05/01/13

    3,150      3,415

5.625% due 10/15/16

    100      104

5.750% due 02/01/18

    1,200      1,264

Series* (Ê)
0.589% due 10/28/15

    2,000      1,837

Waste Management, Inc. (Ñ)
6.375% due 03/11/15

    1,185      1,340

WCI Finance LLC / WEA Finance LLC (Þ)
5.400% due 10/01/12

    1,103      1,178

WEA Finance LLC / WT Finance Aust Pty,
Ltd. (Þ)
7.500% due 06/02/14

    3,870      4,415

6.750% due 09/02/19

    1,300      1,414

Wells Fargo & Co.
0.449% due 10/28/15 (Ê)(Ñ)

    7,200      6,770

5.625% due 12/11/17 (Ñ)

    3,320      3,490

Series K (ƒ)
7.980% due 03/29/49

    20,000      20,200

Wells Fargo Capital XV (ƒ)(Ñ)
9.750% due 12/31/49

    3,585      3,818

Westpac Banking Corp. (Ñ)(Å)
1.900% due 12/14/12

    11,400      11,410

Whirlpool Corp.
8.000% due 05/01/12

    175      193

8.600% due 05/01/14 (Ñ)

    1,125      1,299
     Principal
Amount ($)
or Shares		      Market
Value
$

Williams Cos., Inc.
7.125% due 09/01/11

    1,625      1,779

7.625% due 07/15/19 (Ñ)

    2,300      2,760

Williams Cos., Inc. (The)
7.875% due 09/01/21

    4,742      5,738

7.750% due 06/15/31

    1,340      1,530

Series WI
8.750% due 01/15/20

    5,340      6,862

Wind Acquisition Finance SA (Þ)
11.750% due 07/15/17

    1,900      2,066

Windstream Corp. (Ñ)
Series WI
8.625% due 08/01/16

    500      513

WMG Acquisition Corp.
7.375% due 04/15/14 (Ñ)

    1,575      1,528

9.500% due 06/15/16 (Þ)

    675      724

XTO Energy, Inc.
6.500% due 12/15/18

    5,250      6,027

Yum! Brands, Inc.
8.875% due 04/15/11

    460      497

4.250% due 09/15/15 (Ñ)

    2,500      2,569

5.300% due 09/15/19 (Ñ)

    2,530      2,615

ZFS Finance USA Trust I (Þ)
6.500% due 05/09/37

    1,910      1,700

5.875% due 05/09/62

    1,983      1,694

6.150% due 12/15/65

    5,475      5,229

ZFS Finance USA Trust II (Þ)
6.450% due 12/15/65

    5,205      4,684
         
        1,534,073
         
International Debt - 8.8%        

Achmea Hypotheekbank NV (Þ)
3.200% due 11/03/14

    13,600      13,793

Anglo American Capital PLC (Þ)
9.375% due 04/08/19

    1,400      1,797

ANZ National International, Ltd. (Þ)
6.200% due 07/19/13

    5,000      5,576

ArcelorMittal
9.000% due 02/15/15 (Ñ)

    2,150      2,602

9.850% due 06/01/19

    2,110      2,680

Series WI
6.125% due 06/01/18

    3,425      3,564

ArcelorMittal USA Partnership
9.750% due 04/01/14

    2,581      2,705

Aspen Insurance Holdings, Ltd.
6.000% due 08/15/14

    275      292

AstraZeneca PLC
5.900% due 09/15/17 (Ñ)

    1,100      1,235

6.450% due 09/15/37

    900      1,013

AXA SA (ƒ)(Þ)
6.463% due 12/14/18

    400      315

Bank of Tokyo-Mitsubishi UFJ, Ltd. (Å)
3.850% due 01/22/15

    3,300      3,348

Barclays Bank PLC
5.450% due 09/12/12

    19,100      20,746

6.050% due 12/04/17 (Þ)

    2,700      2,792

 

96   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

6.750% due 05/22/19

    5,500      6,141

7.375% due 06/29/49 (ƒ)(Þ)

    3,075      2,891

BAT International Finance PLC (Þ)
9.500% due 11/15/18

    2,100      2,711

BNP Paribas (ƒ)(Þ)
5.186% due 06/29/49

    600      534

BP Capital Markets PLC (Ñ)
4.750% due 03/10/19

    1,115      1,155

British Telecommunications PLC
9.625% due 12/15/30

    1,660      2,126

C10 Capital SPV, Ltd. (ƒ)(Þ)
6.722% due 12/31/49

    1,800      1,275

Canadian Natural Resources, Ltd.
5.150% due 02/01/13

    1,575      1,701

5.700% due 05/15/17

    150      162

5.850% due 02/01/35

    100      99

6.500% due 02/15/37

    425      456

6.250% due 03/15/38

    125      132

Catalyst Paper Corp.
Series D
8.625% due 06/15/11

    6,000      5,205

CBA Capital Trust II (ƒ)(Ñ)(Þ)
6.024% due 03/29/49

    3,700      3,199

CDP Financial, Inc. (Þ)
5.600% due 11/25/39

    6,700      6,653

CODELCO Inc. (Þ)
7.500% due 01/15/19

    1,900      2,301

6.150% due 10/24/36

    100      105

Covidien International Finance SA (Ñ)
5.450% due 10/15/12

    795      875

6.000% due 10/15/17

    1,915      2,111

Credit Agricole SA (ƒ)(Þ)
8.375% due 10/29/49

    1,650      1,782

Credit Suisse AG
5.400% due 01/14/20

    6,240      6,232

Credit Suisse Guernsey, Ltd. (Ê)(ƒ)
Series 1
0.940% due 05/29/49

    3,595      2,687

Credit Suisse NY
5.000% due 05/15/13

    4,700      5,066

5.500% due 05/01/14 (Ñ)

    3,000      3,279

6.000% due 02/15/18

    2,880      3,041

5.300% due 08/13/19

    640      658

Deutsche Bank AG (Ñ)
6.000% due 09/01/17

    5,800      6,446

Dexia Credit Local
0.899% due 09/23/11 (Ê)(Þ)

    3,000      3,024

2.750% due 01/10/14 (Å)

    7,200      7,266

Digicel Group, Ltd. (Ñ)(Þ)
9.125% due 01/15/15

    5,295      5,216

DP World, Ltd. (Þ)
6.850% due 07/02/37

    5,325      4,150

Electricite De France (Þ)
5.500% due 01/26/14

    1,700      1,878

6.500% due 01/26/19 (Ñ)

    1,700      1,928

6.950% due 01/26/39

    1,700      1,981

Endurance Specialty Holdings, Ltd.
6.150% due 10/15/15

    675      717

7.000% due 07/15/34

    1,775      1,677
     Principal
Amount ($)
or Shares		      Market
Value
$

Enel Finance International SA (Þ)
3.875% due 10/07/14

    4,850      4,949

6.250% due 09/15/17

    1,500      1,646

5.125% due 10/07/19

    9,480      9,606

6.000% due 10/07/39

    3,015      3,011

European Investment Bank
3.000% due 04/08/14

    6,300      6,473

Export-Import Bank of China (Þ)
4.875% due 07/21/15

    300      319

Export-Import Bank of Korea
5.875% due 01/14/15

    2,765      2,969

France Telecom SA
4.375% due 07/08/14

    1,840      1,948

Galaxy Entertainment Finance Co., Ltd. (Þ)
9.875% due 12/15/12

    5,510      5,648

Gaz Capital SA
7.343% due 04/11/13 (Þ)

    600      632

8.125% due 07/31/14 (Ñ)(Å)

    4,865      5,285

8.146% due 04/11/18 (Þ)

    2,600      2,821

Series REGS
8.625% due 04/28/34

    17,900      19,936

Gerdau Holdings, Inc. (Ñ)(Þ)
7.000% due 01/20/20

    5,750      5,779

HBOS PLC (Þ)
6.750% due 05/21/18

    9,920      9,698

HSBC Holdings PLC
6.500% due 05/02/36

    700      740

6.500% due 09/15/37

    1,200      1,255

6.800% due 06/01/38

    1,375      1,496

Israel Government AID Bond
5.500% due 09/18/33

    6,000      6,236

Kansas City Southern de Mexico SA de CV
12.500% due 04/01/16

    2,800      3,273

Korea Electric Power Corp. (Þ)
5.125% due 04/23/34

    485      519

Kreditanstalt fuer Wiederaufbau (Ñ)
1.875% due 01/14/13

    13,600      13,672

Landwirtschaftliche Rentenbank
5.250% due 07/02/12

    10,700      11,682

1.875% due 09/24/12

    13,500      13,620

4.875% due 01/10/14

    14,600      15,895

LBG Capital No. 1 PLC (Å)
8.500% due 12/29/49

    300      249

LeasePlan Corp. NV (Þ)
3.000% due 05/07/12

    7,500      7,725

Lloyds TSB Bank PLC (Å)
4.375% due 01/12/15

    4,450      4,424

12.000% due 12/29/49 (ƒ)

    8,700      9,643

Mexico Government International Bond
6.050% due 01/11/40

    4,660      4,485

Montpelier Re Holdings, Ltd.
6.125% due 08/15/13

    5,725      5,939

MUFG Capital Finance 1, Ltd. (ƒ)
6.346% due 07/29/49

    4,050      3,920

National Australia Bank, Ltd. (Þ)
5.350% due 06/12/13

    6,725      7,312

 

Russell Strategic Bond Fund   97

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Norske Skogindustrier ASA (Þ)
6.125% due 10/15/15

    2,525      1,622

7.125% due 10/15/33

    5,400      2,889

PE Paper Escrow GmbH (Ñ)(Þ)
12.000% due 08/01/14

    600      663

Peruvian Government International Bond
7.125% due 03/30/19

    2,500      2,825

Petro-Canada
6.050% due 05/15/18

    1,350      1,471

Petrobras International Finance Co.
5.750% due 01/20/20

    2,755      2,724

6.875% due 01/20/40 (Ñ)

    5,185      5,215

Petroleos Mexicanos
8.000% due 05/03/19

    4,400      5,016

6.000% due 03/05/20 (Å)

    3,490      3,457

Petroleum Co. of Trinidad & Tobago, Ltd.
Series REGS
9.750% due 08/14/19

    870      981

Petroleum Export, Ltd. (Þ)
5.265% due 06/15/11

    131      130

Province of Ontario Canada
4.100% due 06/16/14

    6,000      6,362

Qatar Government International Bond (Þ)
5.250% due 01/20/20

    9,850      9,887

6.400% due 01/20/40 (Ñ)

    4,570      4,536

Rabobank Nederland NV (ƒ)(Þ)
11.000% due 06/29/49

    3,067      3,918

Ras Laffan Liquefied Natural Gas Co., Ltd. II (Þ)
5.298% due 09/30/20

    5,035      5,067

Ras Laffan Liquefied Natural Gas Co., Ltd. III (Þ)
5.838% due 09/30/27

    300      301

Reliance Industries, Ltd. (Þ)
10.250% due 01/15/97

    1,000      1,025

Republic of Indonesia (Þ)
5.875% due 03/13/20

    4,380      4,440

Republic of the Philippines
6.375% due 10/23/34

    500      471

Resona Bank, Ltd. (ƒ)(Þ)
5.850% due 09/29/49

    4,805      4,433

Resona Preferred Global Securities Cayman, Ltd. (ƒ)(Þ)
7.191% due 12/29/49

    9,905      9,203

Rio Tinto Finance USA, Ltd.
5.875% due 07/15/13

    9,985      10,889

Royal Bank of Scotland Group PLC
1.500% due 03/30/12 (Å)

    18,000      18,019

Series 1 (ƒ)
9.118% due 03/31/49

    2,300      1,978

Royal Bank of Scotland PLC (The) (Þ)
3.000% due 12/09/11 (Ñ)

    24,800      25,596

2.625% due 05/11/12

    6,070      6,211

4.875% due 08/25/14 (Ñ)

    4,075      4,182

Santander Perpetual SA Unipersonal (ƒ)(Þ)
6.671% due 10/29/49

    3,800      3,603

SMFG Preferred Capital USD 1, Ltd. (ƒ)(Þ)
6.078% due 01/29/49

    1,200      1,142
     Principal
Amount ($)
or Shares		      Market
Value
$

Societe Financement de l’Economie Francaise (Þ)
2.375% due 03/26/12

    15,800      16,144

0.451% due 07/16/12 (Ê)

    2,000      2,010

3.375% due 05/05/14

    9,700      10,065

2.875% due 09/22/14

    20,100      20,333

Standard Chartered PLC (Þ)
5.500% due 11/18/14

    500      539

State of Qatar
5.150% due 04/09/14

    610      642

Suncor Energy, Inc.
6.100% due 06/01/18

    3,445      3,764

5.950% due 12/01/34

    1,920      1,943

Swedbank AB (Ñ)(Þ)
2.900% due 01/14/13

    5,000      5,142

Swedish Housing Finance Corp. (Þ)
3.125% due 03/23/12

    9,600      9,827

Swiss Re Capital I, LP (ƒ)(Þ)
6.854% due 05/29/49

    925      795

Systems 2001 AT LLC (Þ)
7.156% due 12/15/11

    266      277

Telecom Italia Capital SA
0.861% due 07/18/11 (Ê)

    1,600      1,596

6.200% due 07/18/11

    1,810      1,924

6.999% due 06/04/18

    2,615      2,900

7.721% due 06/04/38

    2,845      3,248

Telefonica Emisiones SAU
5.984% due 06/20/11

    1,610      1,709

6.421% due 06/20/16

    1,130      1,274

Temasek Financial I, Ltd. (Þ)
4.300% due 10/25/19

    1,200      1,180

Thomson Reuters Corp.
6.500% due 07/15/18

    750      854

TNK-BP Finance SA
6.125% due 03/20/12 (Þ)

    500      513

7.250% due 02/02/20 (Å)

    3,435      3,384

7.500% due 07/18/16 (Þ)

    4,010      4,130

TransCanada PipeLines, Ltd.
6.350% due 05/15/67

    3,175      3,014

TransCapitalInvest, Ltd. for OJSC AK Transneft (Þ)
8.700% due 08/07/18

    1,000      1,155

Transocean, Inc.
5.250% due 03/15/13 (Ñ)

    1,400      1,507

6.000% due 03/15/18

    3,320      3,595

Tyco Electronics Group SA
6.000% due 10/01/12

    4,160      4,510

6.550% due 10/01/17

    5,390      5,859

7.125% due 10/01/37

    2,990      3,278

Tyco International Finance SA
8.500% due 01/15/19

    1,390      1,743

UBS AG
5.850% due 12/31/17

    4,690      1,170

Series DPNT
5.875% due 12/20/17 (Ñ)

    2,000      2,110

5.750% due 04/25/18

    300      314

 

98   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

UBS Luxembourg SA for OJSC Vimpel Communications
Series REGS
8.250% due 05/23/16

    300      314

UPC Germany GmbH (Þ)
8.125% due 12/01/17

    3,000      3,030

Vale Overseas, Ltd.
6.250% due 01/23/17 (Ñ)

    200      212

6.875% due 11/21/36

    200      206

6.875% due 11/10/39 (Ñ)

    4,495      4,590

VIP Finance Ireland, Ltd. for OJSC Vimpel Communications
Series REGS
9.125% due 04/30/18

    700      756

Virgin Media Finance PLC (Ñ)
Series $
8.750% due 04/15/14

    200      206

Volvo Treasury AB (Þ)
5.950% due 04/01/15

    5,504      5,829

Weatherford International, Ltd.
9.625% due 03/01/19

    1,625      2,063

9.875% due 03/01/39 (Ñ)

    620      834

Westpac Banking Corp.
3.250% due 12/16/11 (Å)

    9,600      9,955

4.875% due 11/19/19

    10,350      10,298

White Mountains Re Group, Ltd. (ƒ)(Þ)
7.506% due 05/29/49

    10,100      8,609

WPP Finance UK
8.000% due 09/15/14

    3,345      3,834

WT Finance Aust Pty, Ltd. / Westfield Capital / WEA Finance LLC (Þ)
5.125% due 11/15/14

    925      974

XL Capital, Ltd. (ƒ)(Ñ)
Series E
6.500% due 12/31/49

    7,250      5,510

Xstrata Canada Corp.
6.000% due 10/15/15

    1,050      1,136
         
        681,183
         
Loan Agreements - 0.6%        

Adam Aircraft Term Loan (Ø)(Å)
15.130% due 05/01/12

    760      8

AWAS, Second Lien Term Loan
6.250% due 03/21/13

    715      660

Douglas Dynamics Term Loan
2.481% due 05/21/13

    2,237      2,102

Energy Future Holdings Corp., Term Loan B
3.751% due 10/10/14

    65      53

Energy Future Holdings Corp., Term Loan B2
3.731% due 10/10/14

    6,271      5,101

First Data Corp., Term Loan B
2.981% due 09/24/14

    3,261      2,818

2.999% due 09/24/14

    99      86

3.001% due 09/24/14

    177      153
     Principal
Amount ($)
or Shares		      Market
Value
$

Ford Motor Co. Term Loan
3.240% due 12/15/13

    679      636

3.260% due 12/15/13

    11,061      10,354

HCA, Inc. Term Loan A
1.751% due 11/18/12

    6,425      6,102

HCA, Inc., Term Loan B
2.500% due 12/30/13

    4,091      3,902

Kelson Holdings, Inc., First Lien Term Loan
3.501% due 03/08/13

    10,500      10,262

Newsday Corp. Fixed Rate Term Loan
10.500% due 07/09/13

    3,625      3,851

Supermedia, Inc. Term Loan
11.000% due 12/31/15

    2,386      1,236

United Airlines, Inc. Term Loan B
2.250% due 02/01/14

    1,257      1,016
         
        48,340
         
Mortgage-Backed
Securities - 40.8%		        

Adjustable Rate Mortgage Trust (Ê)
Series 2005-1 Class 5A2
0.561% due 05/25/35

    379      311

Series 2005-3 Class 8A2
0.471% due 07/25/35

    900      754

Alliance Bancorp Trust (Ê)
Series 2007-OA1 Class A1
0.471% due 07/25/37

    4,314      2,115

American Home Mortgage Assets (Ê)
Series 2006-1 Class 1A3
0.461% due 05/25/46

    7,402      1,852

Series 2006-2 Class 2A2
0.461% due 09/25/46

    7,394      1,500

Series 2006-3 Class 1A3
0.551% due 10/25/46

    7,459      648

Series 2006-4 Class 1A11
0.421% due 10/25/46

    11,224      6,051

Series 2006-4 Class 2A2
1.651% due 10/25/46

    9,769      2,218

Series 2006-5 Class A2
1.451% due 11/25/46

    7,822      2,344

Series 2006-6 Class A1C
0.511% due 12/25/46

    1,962      192

Series 2007-4 Class A2
0.421% due 08/25/37

    12,480      6,491

American Home Mortgage Investment Trust
Series 2004-1 Class 1A (Ê)
0.581% due 04/25/44

    236      146

Series 2004-4 Class 4A (Ê)
2.484% due 02/25/45

    794      622

Series 2005-2 Class 1A1 (Ê)
0.531% due 09/25/45

    4,961      3,278

Series 2005-2 Class 5A3
5.077% due 09/25/35

    2,128      2,144

Series 2005-4 Class 1A1 (Ê)
0.521% due 11/25/45

    942      545

 

Russell Strategic Bond Fund   99

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-1 Class 1A2 (Ê)
0.421% due 03/25/46

    8,723      2,039

Series 2007-1 Class GA1C (Ê)
0.421% due 05/25/47

    6,351      3,347

Banc of America Alternative Loan Trust
Series 2003-2 Class CB2 (Ê)
0.731% due 04/25/33

    526      451

Series 2003-10 Class 2A2 (Ê)
0.681% due 12/25/33

    1,387      1,233

Series 2004-10 Class 1CB1
6.000% due 11/25/34

    392      321

Series 2004-11 Class 1CB1
6.000% due 12/25/34

    463      375

Series 2005-3 Class 2A1
5.500% due 04/25/20

    495      447

Series 2005-5 Class 2CB1
6.000% due 06/25/35

    718      488

Series 2005-9 Class 5A1
5.500% due 10/25/20

    996      925

Series 2006-5 Class CB17
6.000% due 06/25/46

    2,291      1,637

Series 2006-6 Class CB6
6.000% due 06/25/46

    1,602      1,334

Banc of America Commercial Mortgage, Inc.
Series 2000-2 Class B
7.378% due 09/15/32

    250      253

Series 2002-PB2 Class A4
6.186% due 06/11/35

    6,682      7,068

Series 2003-1 Class SBB (Þ)
5.860% due 03/11/32

    789      865

Series 2003-1 Class SBC (Þ)
5.790% due 03/11/32

    879      961

Series 2003-1 Class SBE (Þ)
6.770% due 03/11/32

    303      341

Series 2005-2 Class A3
4.611% due 07/10/43

    153      154

Series 2005-2 Class A4
4.783% due 07/10/43

    3,855      3,966

Series 2005-3 Class A2
4.501% due 07/10/43

    1,767      1,768

Series 2005-5 Class A4
5.115% due 10/10/45

    7,755      7,835

Series 2005-6 Class A4
5.179% due 09/10/47

    1,500      1,542

Series 2006-1 Class A4
5.372% due 09/10/45

    4,225      4,235

Series 2006-2 Class A4
5.738% due 05/10/45

    20,071      20,162

Series 2006-4 Class A4
5.634% due 07/10/46

    5,245      5,021

Series 2006-6 Class A4
5.356% due 10/10/45

    6,230      5,740

Series 2007-2 Class A4
5.689% due 04/10/49

    12,788      11,423

Series 2007-2 Class AAB
5.639% due 04/10/49

    1,825      1,844
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2008-1 Class A4
6.167% due 02/10/51

    6,010      5,735

Series 2008-1 Class B (Þ)
6.210% due 02/10/51

    1,562      548

Series 2008-1 Class C (Þ)
6.210% due 02/10/51

    1,507      484

Banc of America Funding Corp.
Series 2005-5 Class 1A11
5.500% due 09/25/35

    674      596

Series 2005-D Class A1 (Ê)
3.131% due 05/25/35

    1,127      1,040

Series 2005-F Class 1A2 (Ê)
0.581% due 09/20/35

    342      110

Series 2006-3 Class 5A8
5.500% due 03/25/36

    4,640      3,491

Series 2006-A Class 3A2
5.781% due 02/20/36

    1,396      796

Series 2006-A Class 4A1 (Ê)

5.533% due 02/20/36

    3,918      2,689

Series 2006-F Class 1A2 (Ê)
5.183% due 07/20/36

    264      77

Series 2006-H Class 4A4
6.120% due 09/20/46

    1,120      240

Series 2006-I Class 5A1 (Ê)
6.063% due 10/20/46

    13,571      11,566

Series 2006-J Class 4A1
6.087% due 01/20/47

    1,067      758

Banc of America Mortgage Securities, Inc.
Series 2003-9 Class 1A12 (Ê)
0.681% due 12/25/33

    1,482      1,424

Series 2003-D Class 1A2 (Ê)
3.718% due 05/25/33

    1      1

Series 2004-1 Class 5A1
6.500% due 09/25/33

    45      46

Series 2004-2 Class 1A9 (Ê)
0.681% due 03/25/34

    1,220      1,137

Series 2004-11 Class 2A1
5.750% due 01/25/35

    2,554      2,553

Series 2004-D Class 1A1 (Ê)
3.878% due 05/25/34

    117      91

Series 2004-F Class 1A1 (Ê)
4.087% due 07/25/34

    1,084      1,001

Series 2004-I Class 2A2 (Ê)
3.676% due 10/25/34

    207      177

Series 2004-L Class 2A1 (Ê)
3.307% due 01/25/35

    3,346      2,922

Series 2005-1 Class 1A13
4.750% due 02/25/35

    723      727

Series 2005-3 Class 1A25
5.500% due 04/25/35

    1,159      1,168

Series 2005-G Class 2A1 (Ê)
4.922% due 08/25/35

    1,577      1,321

Series 2005-H Class 2A5 (Ê)
4.777% due 09/25/35

    3,300      2,727

Series 2005-I Class 2A2 (Ê)
4.856% due 10/25/35

    2,781      706

 

100   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2005-I Class 4A1 (Ê)
5.175% due 10/25/35

    1,707      1,463

Series 2005-L Class 3A1 (Ê)
5.390% due 01/25/36

    1,670      1,427

Series 2006-2 Class A12
6.000% due 07/25/46

    967      855

Series 2006-2 Class A15
6.000% due 07/25/46

    1,921      1,745

Series 2006-B Class 1A1 (Ê)
4.354% due 10/20/46

    1,163      791

Series 2007-1 Class 1A7
5.750% due 03/25/37

    322      324

Series 2007-1 Class 1A16
5.625% due 03/25/37

    2,614      2,310

Series 2007-3 Class 1A1
6.000% due 09/25/37

    6,391      5,301

Bear Stearns Adjustable Rate Mortgage Trust
Series 2002-11 Class 1A2
3.943% due 02/25/33

    10      10

Series 2003-1 Class 6A1
4.445% due 04/25/33

    55      50

Series 2003-8 Class 4A1
3.705% due 01/25/34

    280      250

Series 2004-1 Class 21A1
3.536% due 04/25/34

    1,306      1,198

Series 2004-3 Class 1A1 (Ê)
4.145% due 07/25/34

    1,004      817

Series 2004-8 Class 2A1
3.707% due 11/25/34

    2,954      2,597

Series 2004-9 Class 22A1 (Ê)
4.151% due 11/25/34

    565      535

Series 2004-10 Class 22A1
4.975% due 01/25/35

    803      766

Series 2005-2 Class A1 (Ê)
2.940% due 03/25/35

    12,298      11,583

Series 2005-2 Class A2 (Ê)
2.181% due 03/25/35

    1,818      1,740

Series 2005-5 Class A2 (Ê)
2.560% due 08/25/35

    2,972      2,866

Series 2007-1 Class 3A2
5.718% due 02/25/47

    3,020      413

Series 2007-3 Class 1A1
5.428% due 05/25/47

    7,276      5,118

Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
5.126% due 05/25/35

    1,668      1,198

Series 2005-5 Class 21A1
3.329% due 07/25/35

    3,640      2,620

Series 2005-7 Class 22A1
5.275% due 09/25/35

    659      489

Series 2005-8 Class 11A1 (Ê)
0.501% due 10/25/35

    2,066      1,102

Series 2006-3 Class 22A1
5.871% due 05/25/36

    5,515      3,001

Series 2006-3 Class 33A1 (Ê)
6.051% due 05/25/36

    1,786      908
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-4 Class 13A1 (Ê)
0.391% due 08/25/36

    10,201      4,794

Bear Stearns Commercial Mortgage Securities
Series 2001-TOP Class A2
6.480% due 02/15/35

    124      128

Series 2001-TOP Class A3
5.610% due 11/15/33

    555      576

Series 2003-T12 Class A4
4.680% due 08/13/39

    1,140      1,175

Series 2004-PWR Class A3
4.565% due 07/11/42

    1,500      1,506

Series 2005-PW1 Class A4
5.405% due 12/11/40

    5,000      5,128

Series 2005-PWR Class A4B
4.943% due 09/11/42

    85      76

Series 2005-T18 Class A4
4.933% due 02/13/42

    2,192      2,244

Series 2006-PW1 Class A4
5.201% due 12/11/38

    2,440      2,358

Series 2007-PW1 Class A4
5.719% due 06/11/40

    5,198      4,887

5.331% due 02/11/44

    100      89

5.694% due 06/11/50

    4,500      4,223

Series 2007-PW1 Class AM
5.719% due 06/11/40

    2,181      1,531

5.915% due 06/11/50

    3,640      3,043

Series 2007-T26 Class A4
5.471% due 01/12/45

    400      398

Bear Stearns Mortgage Funding Trust (Ê)
Series 2006-AR2 Class 2A1
0.461% due 09/25/46

    2,093      1,054

Series 2006-AR3 Class 1A1
0.411% due 10/25/36

    2,196      1,147

Series 2006-AR4 Class A1
0.441% due 12/25/36

    2,481      1,259

Series 2006-AR5 Class 1A1
0.391% due 12/25/46

    5,360      2,941

Series 2007-AR2 Class A1
0.401% due 03/25/37

    2,664      1,432

Series 2007-AR2 Class A3
0.461% due 03/25/37

    10,120      1,041

Series 2007-AR3 Class 1A1
0.371% due 03/25/37

    3,953      2,175

Bear Stearns Structured Products, Inc.
Series 2007-R6 Class 1A1
5.618% due 01/26/36

    2,419      1,517

Series 2007-R6 Class 2A1
5.666% due 12/26/46

    1,402      811

Chase Commercial Mortgage Securities Corp.
Series 2000-3 Class A2
7.319% due 10/15/32

    532      543

Series 2001-245 Class A2 (Þ)
6.484% due 02/12/16

    300      313

 

Russell Strategic Bond Fund   101

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Chase Mortgage Finance Corp.
Series 2003-S8 Class A1
4.500% due 09/25/18

    1,230      1,243

Series 2006-S4 Class A3
6.000% due 12/25/36

    2,162      2,004

Series 2006-S4 Class A4
6.000% due 12/25/36

    822      772

Series 2007-A1 Class 1A3
3.794% due 02/25/37

    1,627      1,536

Series 2007-A1 Class 2A1
4.125% due 02/25/37

    1,101      1,065

Series 2007-A1 Class 3A1
4.177% due 02/25/37

    623      568

Series 2007-A1 Class 4A1

3.886% due 02/25/37

    323      292

Series 2007-A1 Class 5A1
4.092% due 02/25/37

    1,190      1,101

Series 2007-A1 Class 7A1
4.592% due 02/25/37

    501      473

Series 2007-A1 Class 8A1
4.213% due 02/25/37

    4,668      4,408

Citicorp Mortgage Securities, Inc.
Series 2005-1 Class 1A1
5.000% due 02/25/35

    1,075      1,054

Series 2006-3 Class 1A9
5.750% due 06/25/36

    2,840      2,357

Citigroup Commercial Mortgage Trust
Series 2006-C5 Class A4
5.431% due 10/15/49

    7,113      6,899

Citigroup Mortgage Loan Trust, Inc.
Series 2005-11 Class A2A (Ê)
4.700% due 12/25/35

    288      265

Series 2006-AR7 Class 1A4A
5.720% due 11/25/36

    8,411      6,151

Series 2007-6 Class 1A4A
5.866% due 03/25/37

    2,493      1,319

Series 2007-AR8 Class 2A1A
5.876% due 07/25/37

    3,881      2,899

Series 2008-RR1 Class A1A1 (Ê)(Þ)
0.301% due 01/25/37

    317      267

Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class A4
5.225% due 07/15/44

    10,680      11,026

Series 2006-CD3 Class A5
5.617% due 10/15/48

    7,689      7,706

Series 2007-CD4 Class A4
5.322% due 12/11/49

    1,650      1,485

Citimortgage Alternative Loan Trust
Series 2006-A3 Class 1A5
6.000% due 07/25/36

    1,415      1,050

Series 2007-A1 Class 1A5
6.000% due 01/25/37

    3,629      2,568

Series 2007-A3 Class 1A7
5.750% due 03/25/37

    2,609      1,904
     Principal
Amount ($)
or Shares		      Market
Value
$

Commercial Mortgage Acceptance Corp.
Series 1998-C2 Class E
7.477% due 09/15/30

    762      763

Commercial Mortgage Loan Trust
Series 2008-LS1 Class A4B
6.020% due 12/10/49

    13,555      12,357

Series 2008-LS1 Class AJ
6.020% due 10/10/17

    1,280      574

Commercial Mortgage Pass Through Certificates
Series 2001-J1A Class A2 (Þ)
6.457% due 02/16/34

    2,135      2,190

Series 2001-J1A Class B (Þ)
6.614% due 02/15/34

    1,990      2,073

Series 2003-LB1 Class A2
4.084% due 06/10/38

    4,550      4,569

Series 2006-C7 Class A2
5.690% due 06/10/46

    1,070      1,098

Series 2006-C8 Class A3
5.308% due 12/10/46

    520      510

Series 2006-C8 Class A4
5.306% due 12/10/46

    2,800      2,527

Series 2007-C9 Class A4
5.816% due 12/10/49

    7,970      7,564

Countrywide Alternative Loan Trust
Series 2003-20C Class 1A2
5.500% due 10/25/33

    551      545

Series 2004-2CB Class 1A4 (Ê)
0.631% due 03/25/34

    374      332

Series 2004-28C Class 6A1
6.000% due 01/25/35

    623      584

Series 2004-J8 Class 1A1
7.000% due 09/25/34

    595      553

Series 2005-1CB Class 2A1
6.000% due 03/25/35

    9,110      6,828

Series 2005-1CB Class 2A2
5.500% due 03/25/35

    1,426      1,297

Series 2005-16 Class A1 (Ê)
2.189% due 06/25/35

    3,007      1,271

Series 2005-20C Class 1A1
5.500% due 07/25/35

    1,444      1,312

Series 2005-24 Class 3A2 (Ê)
0.631% due 07/20/35

    2,332      496

Series 2005-32T Class A7 (Ê)
0.481% due 08/25/35

    1,151      966

Series 2005-38 Class A1 (Ê)
2.044% due 09/25/35

    1,226      743

Series 2005-38 Class A3 (Ê)
0.581% due 09/25/35

    1,226      693

Series 2005-44 Class 1A2A (Ê)
0.521% due 10/25/35

    339      323

Series 2005-51 Class 1A1 (Ê)
0.551% due 11/20/35

    1,572      870

Series 2005-51 Class 1A2A (Ê)
0.521% due 11/20/35

    2,841      2,664

Series 2005-51 Class 2A1 (Ê)
0.531% due 11/20/35

    359      198

 

102   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2005-51 Class 2A2A (Ê)
0.521% due 11/20/35

    39      37

Series 2005-51 Class 4A1 (Ê)
0.551% due 11/20/35

    556      303

Series 2005-58 Class A2 (Ê)
0.621% due 12/20/35

    1,565      468

Series 2005-59 Class 1A1 (Ê)
0.561% due 11/20/35

    2,603      1,365

Series 2005-59 Class 1A2B (Ê)
0.491% due 11/20/35

    2,846      2,645

Series 2005-62 Class 1A1 (Ê)
0.531% due 12/25/35

    1,805      956

Series 2005-63 Class 5A1 (Ê)
5.280% due 12/25/35

    3,603      2,406

Series 2005-72 Class A2 (Ê)
0.591% due 01/25/36

    1,349      404

Series 2005-85C Class 2A2
5.500% due 02/25/36

    57      42

Series 2005-J8 Class 1A3
5.500% due 07/25/35

    2,220      1,816

Series 2005-J13 Class 2A3
5.500% due 11/25/35

    1,083      847

Series 2006-6CB Class 1A10
5.500% due 05/25/36

    907      803

Series 2006-9T1 Class A7
6.000% due 05/25/36

    1,006      718

Series 2006-23C Class 1A6
6.000% due 08/25/36

    2,873      2,183

Series 2006-J2 Class A3
6.000% due 04/25/36

    1,552      1,295

Series 2006-OA1 Class 1A3 (Ê)
0.531% due 12/20/46

    4,902      560

Series 2006-OA1 Class 2A1 (Ê)
0.441% due 03/20/46

    6,393      3,342

Series 2006-OA1 Class 4A1 (Ê)
0.421% due 08/25/46

    3,060      1,696

Series 2006-OA1 Class A1 (Ê)
0.411% due 02/20/47

    3,979      1,809

Series 2006-OA1 Class A2 (Ê)
0.441% due 09/20/46

    6,062      2,654

0.421% due 10/25/46

    21,013      11,308

Series 2006-OA2 Class A1 (Ê)
0.391% due 02/25/47

    3,127      1,675

0.421% due 03/20/47

    2,118      1,103

Series 2006-OA2 Class A2A (Ê)
0.381% due 05/20/46

    1,264      1,202

Series 2006-OA2 Class A5 (Ê)
0.461% due 05/20/46

    117      60

Series 2006-OA3 Class 1A2 (Ê)
0.491% due 05/25/36

    3,319      745

Series 2006-OA6 Class 1A3 (Ê)
0.501% due 07/25/46

    1,215      378

Series 2006-OA7 Class 1A4 (Ê)
1.484% due 06/25/46

    8,394      985

Series 2006-OA9 Class 2A2 (Ê)
2.114% due 07/20/46

    3,867      443
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-OC1 Class 2A1 (Ê)
0.321% due 11/25/36

    490      469

0.331% due 01/25/37

    1,195      1,150

Series 2006-OC6 Class 2A1 (Ê)
0.301% due 07/25/36

    705      637

Series 2006-OC7 Class 2A1 (Ê)
0.301% due 07/25/46

    297      289

Series 2006-OC9 Class A1 (Ê)
0.306% due 12/25/46

    2,249      2,119

Series 2007-15C Class A5

5.750% due 07/25/37

    11,241      7,695

Series 2007-15C Class A7
6.000% due 07/25/37

    2,984      2,351

Series 2007-HY3 Class 1A1 (Ê)
5.990% due 03/25/47

    17,447      8,817

Series 2007-J2 Class 2A1
6.000% due 07/25/37

    3,490      2,336

Series 2007-OA1 Class A1A (Ê)
1.861% due 11/25/47

    7,433      3,729

Series 2007-OA4 Class A1 (Ê)
0.401% due 05/25/47

    4,053      2,133

Series 2007-OA6 Class A1B (Ê)
0.431% due 06/25/37

    1,790      871

Series 2007-OH1 Class A1D (Ê)
0.441% due 04/25/47

    1,841      1,024

Countrywide Home Loan Mortgage Pass Through Trust
Series 2003-8 Class A2 (Ê)
0.731% due 05/25/18

    1,492      1,257

Series 2003-20 Class 1A9
5.500% due 07/25/33

    851      867

Series 2003-42 Class M (Ê)
3.703% due 10/25/33

    642      158

Series 2003-52 Class A1
3.438% due 02/19/34

    1,870      1,646

Series 2004-12 Class 1M
3.969% due 08/25/34

    316      31

Series 2004-16 Class 1A1 (Ê)
0.631% due 09/25/34

    1,255      718

Series 2004-22 Class A3
3.509% due 11/25/34

    2,055      1,750

Series 2004-HYB Class 1A1

3.401% due 02/20/35

    3,545      3,027

Series 2004-HYB Class A2
3.611% due 11/20/34

    1,557      1,282

Series 2004-J9 Class 2A1
5.250% due 01/25/35

    1,261      1,240

Series 2005-11 Class 5A1 (Ê)
0.531% due 03/25/35

    41      23

Series 2005-19 Class 1A1
5.500% due 08/25/35

    781      735

Series 2005-29 Class A1
5.750% due 12/25/35

    2,640      2,137

Series 2005-HYB Class 3A2A (Ê)
5.250% due 02/20/36

    394      267

Series 2005-R2 Class 2A4 (Þ)
8.500% due 06/25/35

    276      266

 

Russell Strategic Bond Fund   103

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-1 Class A2
6.000% due 03/25/36

    1,500      1,169

Series 2006-1 Class A3
6.000% due 03/25/36

    371      81

Series 2006-13 Class 1A23
6.250% due 09/25/36

    353      285

Series 2006-20 Class B1
Interest Only STRIP
6.000% due 02/25/37

    1,219      24

Series 2006-HYB Class 3A1A
6.017% due 05/20/36

    2,271      1,379

Series 2006-OA5 Class 2A1 (Ê)
0.431% due 04/25/46

    4,297      2,161

Series 2006-R2 Class AF1 (Ê)(Þ)
0.651% due 07/25/36

    3,021      2,278

Series 2007-1 Class A1
6.000% due 03/25/37

    14,530      11,908

Series 2007-14 Class A19
6.000% due 09/25/37

    6,908      6,007

Series 2007-18 Class 2A1
6.500% due 11/25/37

    2,784      2,307

Series 2007-HY1 Class 1A2
5.639% due 04/25/37

    1,016      208

Credit Suisse First Boston Mortgage Securities Corp.
Series 2001-CF2 Class A4
6.505% due 02/15/34

    405      416

Series 2001-CK1 Class C
6.730% due 12/18/35

    1,083      1,092

Series 2001-CKN Class A4
5.435% due 09/15/34

    7,161      7,392

Series 2001-SPG Class A2 (Þ)

6.515% due 08/13/18

    995      1,050

Series 2002-30 Class DB1
7.399% due 11/25/32

    660      602

Series 2002-CKP Class A3
6.439% due 12/15/35

    1,395      1,482

Series 2002-CP3 Class A3
5.603% due 07/15/35

    790      834

Series 2003-29 Class 5A1
7.000% due 12/25/33

    107      106

Series 2004-1 Class 3A1
7.000% due 02/25/34

    42      38

Series 2004-C1 Class A3
4.321% due 01/15/37

    2,123      2,154

Series 2005-9 Class 2A1
5.500% due 10/25/35

    5,794      4,979

Series 2005-C1 Class A4
5.014% due 02/15/38

    100      101

Series 2005-C5 Class A4
5.100% due 08/15/38

    35      35

Series 2005-C6 Class A4
5.230% due 12/15/40

    5,100      5,167

Credit Suisse Mortgage Capital Certificates
Series 2006-8 Class 4A1 (Å)
6.500% due 10/25/21

    8,605      6,166

Series 2006-C3 Class A3
5.826% due 06/15/38

    362      326
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-C3 Class B
5.826% due 06/15/38

    2,153      758

Series 2006-C4 Class A3
5.467% due 09/15/39

    17,746      15,826

Series 2006-C5 Class A3
5.311% due 12/15/39

    5,015      4,407

Series 2007-C1 Class A3
5.383% due 02/15/40

    5,350      4,361

Series 2007-C2 Class A3
5.542% due 01/15/49

    64      53

Series 2007-C5 Class B
6.133% due 09/15/40

    2,584      665

Crown Castle Towers LLC (Þ)
Series 2006-1A Class AFX
5.245% due 11/15/36

    1,735      1,822

Series 2006-1A Class D
5.772% due 11/15/36

    405      426

CW Capital Cobalt, Ltd.
Series 2007-C3 Class A4
5.820% due 05/15/46

    1,820      1,572

Deutsche ALT-A Securities NIM Trust
Series 2007-AHM Class N1
6.750% due 02/25/47

    51      —

Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2003-4XS Class A6A
4.820% due 10/25/33

    563      521

Series 2005-AR1 Class 2A3
4.928% due 08/25/35

    925      506

Series 2007-OA1 Class A1 (Ê)
0.381% due 02/25/47

    7,571      4,338

Series 2007-OA2 Class A1 (Ê)
1.001% due 04/25/47

    17,096      9,667

DLJ Commercial Mortgage Corp.
Series 1999-CG1 Class S
1.390% due 03/10/32

    1,837      60

Series 2000-CKP Class A1B
7.180% due 11/10/33

    825      839

Downey Savings & Loan Association Mortgage Loan Trust (Ê)
Series 2006-AR1 Class 2A1A
1.421% due 04/19/47

   1,833      1,101

Fannie Mae
5.190% due 2012

    2,536      2,713

5.500% due 2013

    7      7

5.000% due 2014

    25      26

5.500% due 2014

    19      21

6.500% due 2015

    7      7

5.000% due 2016

    182      191

5.500% due 2016

    43      45

6.000% due 2016

    437      474

8.000% due 2016

    8      9

11.000% due 2016

    45      50

5.000% due 2017

    4,844      5,152

5.500% due 2017

    298      320

6.000% due 2017

    304      329

6.500% due 2017

    739      797

 

104   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

7.000% due 2017

    25      28

8.000% due 2017

    28      32

4.000% due 2018

    4,359      4,526

4.500% due 2018

    7,094      7,488

5.000% due 2018

    12,413      13,223

5.500% due 2018

    281      304

6.500% due 2018

    150      163

7.000% due 2018

    84      92

10.000% due 2018

    26      29

4.500% due 2019

    110      116

5.000% due 2019

    11,475      12,219

5.500% due 2019

    128      138

6.000% due 2019

    3,483      3,762

6.500% due 2019

    72      79

4.000% due 2020

    70      69

4.500% due 2020

    888      937

5.000% due 2020

    654      699

5.500% due 2020

    862      929

6.000% due 2020

    4,705      5,082

6.500% due 2020

    32      35

8.000% due 2020

    4      5

5.000% due 2021

    4,696      5,000

5.500% due 2021

    5,252      5,628

5.500% due 2022

    21,846      23,393

6.500% due 2022

    43      47

5.000% due 2023

    168      178

5.500% due 2023

    5,276      5,647

7.500% due 2024

    5      6

8.000% due 2024

    57      65

10.000% due 2024

    11      13

3.145% due 2025 (Ê)

    15      15

7.000% due 2025

    2      3

3.152% due 2026 (Ê)

    258      266

6.000% due 2026

    1,375      1,482

7.000% due 2026

    138      155

9.000% due 2026

    21      23

6.000% due 2027

    3,939      4,241

7.000% due 2027

    5      6

7.500% due 2027

    16      18

6.500% due 2028

    198      216

7.000% due 2028

    298      332

5.500% due 2029

    1      1

6.500% due 2029

    474      519

7.000% due 2029

    1,483      1,648

7.500% due 2029

    86      97

8.000% due 2029

    3      3

8.500% due 2029

    2      2

6.500% due 2030

    156      171

7.000% due 2030

    598      667

7.500% due 2030

    315      353

8.000% due 2030

    307      354

8.500% due 2030

    193      225

9.500% due 2030

    91      107

6.500% due 2031

    396      434

7.000% due 2031

    1,393      1,556

7.500% due 2031

    468      528

8.000% due 2031

    618      712
     Principal
Amount ($)
or Shares		      Market
Value
$

8.500% due 2031

    330      383

6.500% due 2032

    1,239      1,353

7.000% due 2032

    4,016      4,466

7.500% due 2032

    364      411

8.000% due 2032

    23      27

8.500% due 2032

    39      45

2.548% due 2033 (Ê)

    295      305

2.783% due 2033 (Ê)

    572      590

2.853% due 2033 (Ê)

    1,299      1,338

3.042% due 2033 (Ê)

    58      60

3.370% due 2033 (Ê)

    14      14

3.375% due 2033 (Ê)

    13      13

3.546% due 2033 (Ê)

    511      525

3.936% due 2033 (Ê)

    1,231      1,266

5.000% due 2033

    3,891      4,060

5.500% due 2033

    8,232      8,756

6.000% due 2033

    722      779

6.500% due 2033

    1,006      1,096

7.000% due 2033

    1,100      1,217

2.697% due 2034 (Ê)

    1,570      1,633

3.111% due 2034 (Ê)

    924      951

3.451% due 2034 (Ê)

    1,817      1,869

3.732% due 2034 (Ê)

    228      236

5.000% due 2034

    1,183      1,235

5.500% due 2034

    12,696      13,499

6.000% due 2034

    2,168      2,342

6.500% due 2034

    1,009      1,097

7.000% due 2034

    398      441

3.117% due 2035 (Ê)

    1,237      1,266

3.299% due 2035 (Ê)

    1,333      1,382

3.375% due 2035 (Ê)

    2,432      2,512

3.418% due 2035 (Ê)

    1,245      1,278

3.500% due 2035 (Ê)

    694      714

3.571% due 2035 (Ê)

    1,713      1,770

3.623% due 2035 (Ê)

    2,234      2,313

4.828% due 2035 (Ê)

    3,800      3,966

5.000% due 2035

    1,630      1,698

5.022% due 2035 (Ê)

    302      320

5.169% due 2035 (Ê)

    293      310

5.500% due 2035

    209      223

6.000% due 2035

    5,033      5,440

6.500% due 2035

    77      84

7.000% due 2035

    400      441

7.500% due 2035

    1,139      1,291

4.797% due 2036 (Ê)

    390      408

5.500% due 2036

    9,082      9,630

6.000% due 2036

    23,905      25,629

6.324% due 2036 (Ê)

    76      81

6.500% due 2036

    1,282      1,388

7.000% due 2036

    669      736

5.500% due 2037

    28,563      30,273

5.512% due 2037 (Ê)

    2,981      3,157

6.000% due 2037

    18,327      19,612

6.500% due 2037

    8,255      8,888

5.000% due 2038

    2,715      2,826

5.500% due 2038

    11,828      12,545

6.000% due 2038

    1,155      1,233

 

Russell Strategic Bond Fund   105

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

4.500% due 2039

    13,968      14,128

5.000% due 2039

    58,532      60,901

5.500% due 2039

    4,597      4,873

6.000% due 2039

    3,952      4,232

1.944% due 2040 (Ê)

    263      263

4.500% due 2040

    4,745      4,797

1.744% due 2043 (Ê)

    173      173

15 Year TBA (Ï)

        

5.000%

    1,160      1,225

5.500%

    1,940      2,073

30 Year TBA (Ï)

        

4.500%

    228,430      230,714

5.000%

    18,000      18,703

5.500%

    51,170      54,200

6.000%

    4,150      4,461

6.500%

    79,000      85,115

Series 1997-281 Class 2
Interest Only STRIP
9.000% due 11/01/26

    51      16

Series 2000-306 Class IO
Interest Only STRIP
8.000% due 05/01/30

    55      15

Series 2001-317 Class 2
Interest Only STRIP
8.000% due 08/01/31

    86      23

Series 2002-320 Class 2
Interest Only STRIP
7.000% due 04/01/32

    30      7

Series 2003-339 Class 23
Interest Only STRIP
5.000% due 07/01/18

    2,271      235

Series 2003-343 Class 6
Interest Only STRIP
5.000% due 10/01/33

    2,400      500

Series 2003-345 Class 18
Interest Only STRIP
4.500% due 12/01/18

    7,112      773

Series 2003-345 Class 19
Interest Only STRIP
4.500% due 01/01/19

    7,872      832

Series 2005-365 Class 12
Interest Only STRIP
5.500% due 12/01/35

    11,683      2,066

Series 2006-369 Class 8
Interest Only STRIP
5.500% due 04/01/36

    2,041      365

Fannie Mae Grantor Trust
Series 1999-T2 Class A1
7.500% due 01/19/39

    26      29

Series 2000-T6 Class A1
7.500% due 06/25/30

    54      62

Series 2001-T8 Class A2
9.500% due 07/25/41

    190      206

Series 2002-T19 Class A1
6.500% due 07/25/42

    543      592

Series 2003-T4 Class 2A5
5.407% due 09/26/33

    739      656
     Principal
Amount ($)
or Shares		      Market
Value
$

Fannie Mae REMICS
Series 1996-46 Class ZA
7.500% due 11/25/26

    222      245

Series 1997-68 Class SC (Ê)
Interest Only STRIP
8.250% due 05/18/27

    72      13

Series 1999-56 Class Z
7.000% due 12/18/29

    993      1,091

Series 2001-4 Class SA (Ê)
Interest Only STRIP
7.317% due 02/17/31

    115      14

Series 2003-21 Class M
5.000% due 02/25/17

    277      286

Series 2003-25 Class IK
Interest Only STRIP
7.000% due 04/25/33

    284      60

Series 2003-32 Class FH (Ê)
0.631% due 11/25/22

    1,811      1,792

Series 2003-32 Class UI
Interest Only STRIP
6.000% due 05/25/33

    397      69

Series 2003-33 Class IA
Interest Only STRIP
6.500% due 05/25/33

    1,606      281

Series 2003-35 Class FY (Ê)
0.631% due 05/25/18

    3,914      3,876

Series 2003-35 Class IU
Interest Only STRIP
6.000% due 05/25/33

    384      69

Series 2003-35 Class UI
Interest Only STRIP
6.500% due 05/25/33

    375      65

Series 2003-64 Class JI
Interest Only STRIP
6.000% due 07/25/33

    403      77

Series 2003-78 Class FI (Ê)
0.631% due 01/25/33

    1,738      1,724

Series 2003-82 Class IA
Interest Only STRIP
6.000% due 08/25/32

    282      15

Series 2003-82 Class WI
Interest Only STRIP
6.000% due 08/25/32

    32      1

Series 2003-122 Class AJ
4.500% due 02/25/28

    402      417

Series 2004-21 Class FL (Ê)
0.581% due 11/25/32

    983      977

Series 2004-70 Class EB
5.000% due 10/25/24

    3,450      3,708

Series 2005-65 Class FP (Ê)
Principal Only STRIP
0.481% due 08/25/35

    82      82

Series 2005-69 Class IO (Ê)(Å)
Zero coupon due 08/25/35

    15      —

Series 2005-79 Class FC (Ê)
0.531% due 02/25/22

    1,409      1,406

Series 2005-110 Class MB
5.500% due 09/25/35

    1,839      1,943

 

106   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-5 Class 3A2 (Ê)
3.805% due 05/25/35

    353      356

Series 2006-22 Class CE
4.500% due 08/25/23

    1,895      1,940

Series 2006-48 Class LG
Principal Only STRIP
Zero coupon 06/25/36

    526      461

Series 2006-81 Class LF (Ê)(Å)
Zero coupon 09/25/36

    76      70

Series 2006-118 Class A1 (Ê)
0.291% due 12/25/36

    362      335

Series 2006-118 Class A2 (Ê)
0.291% due 12/25/36

    1,309      1,252

Series 2007-27 Class XA (Ê)(Å)
Principal Only STRIP
Zero coupon 05/25/35

    46      41

Series 2007-39 Class EF (Ê)
0.481% due 05/25/37

    1,729      1,705

Series 2007-42 Class LF (Ê)(Å)
Principal Only STRIP
Zero coupon 05/25/37

    198      178

Series 2007-53 Class UF (Ê)(Å)
Zero coupon 06/25/37

    92      88

Series 2007-56 Class GY (Ê)(Å)
Zero coupon due 06/25/37

    55      49

Series 2007-73 Class A1 (Ê)
0.291% due 07/25/37

    3,637      3,484

Series 2008-22 Class FD (Ê)
1.071% due 04/25/48

    9,353      9,329

Series 2008-56 Class FD (Ê)
1.171% due 07/25/48

    10,206      10,201

Series 2009-39 Class LB
4.500% due 06/25/29

    1,964      1,940

Series 2009-69 Class MB
4.000% due 09/25/29

    5,085      4,846

Series 2009-89 Class A1
5.410% due 05/25/35

    3,499      3,671

Series 2009-96 Class DB
4.000% due 11/25/29

    4,250      3,935

Fannie Mae Whole Loan
Series 2003-W1 Class 2A
7.500% due 12/25/42

    107      121

Series 2003-W4 Class 4A
7.500% due 10/25/42

    50      57

Series 2003-W17 Class 1A6
5.310% due 08/25/33

    6,265      6,636

Series 2004-W9 Class 2A1
6.500% due 02/25/44

    290      317

Series 2004-W11 Class 1A2
6.500% due 05/25/44

    599      653

Fannie Mae-Aces
Series 2006-M2 Class A2F
5.259% due 05/25/20

    300      320

Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2002-42 Class A6
9.500% due 02/25/42

    83      93
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2003-58 Class 2A
6.500% due 09/25/43

    265      289

Series 2005-63 Class 1A1 (Ê)
1.744% due 02/25/45

    126      118

FHA PJ Reilly 67 NCP
7.430% due 07/01/24

    57      57

First Horizon Alternative Mortgage Securities
Series 2004-AA3 Class A1 (Ê)
2.995% due 09/25/34

    360      314

Series 2005-AA2 Class 1A1 (Ê)
3.035% due 03/25/35

    187      141

Series 2005-AA5 Class 1A1 (Ê)
Interest Only STRIP
2.545% due 07/25/35

    249      169

Series 2005-AA7 Class 2A1 (Ê)
5.389% due 09/25/35

    2,462      1,785

Series 2006-AA5 Class A2 (Ê)
Interest Only STRIP
6.451% due 09/25/36

    664      13

Series 2006-FA3 Class A6
6.000% due 07/25/36

    1,385      1,123

First Horizon Asset Securities, Inc.
Series 2003-5 Class 1A17
8.000% due 07/25/33

    80      80

Series 2004-AR5 Class 4A1 (Ê)
5.665% due 10/25/34

    377      320

Series 2004-AR6 Class 2A1 (Ê)
3.007% due 12/25/34

    533      484

Series 2005-AR3 Class 2A1 (Ê)
5.361% due 08/25/35

    662      591

Series 2005-AR5 Class 3A1 (Ê)
5.558% due 10/25/35

    655      577

Series 2006-AR4 Class 1A3 (Ê)
Interest Only STRIP
5.484% due 01/25/37

    121      33

First Union Commercial Mortgage Securities, Inc.
Series 1997-C2 Class D
7.120% due 11/18/29

    190      204

First Union National Bank-Bank of America Commercial Mortgage Trust
Series 2001-C1 Class A2
6.136% due 03/15/33

    432      442

FNR 2009 71 MB
Series 2009-71 Class MB
4.500% due 09/25/24

    2,900      2,964

Freddie Mac
5.500% due 2013

    1      1

12.000% due 2013

    5      6

12.000% due 2014

    8      9

11.000% due 2015

    6      6

5.500% due 2016

    15      16

6.000% due 2016

    75      81

10.000% due 2016

    42      47

5.500% due 2017

    127      137

8.500% due 2017

    26      29

10.500% due 2017

    6      7

4.500% due 2018

    709      747

5.000% due 2018

    2,983      3,180

5.500% due 2018

    42      45

 

Russell Strategic Bond Fund   107

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

4.500% due 2019

    205      217

5.000% due 2019

    4,408      4,696

5.500% due 2019

    125      134

5.000% due 2020

    9,194      9,785

5.500% due 2020

    5,723      6,154

8.000% due 2020

    81      93

10.000% due 2020

    23      26

11.000% due 2020

    28      32

5.000% due 2021

    914      974

10.500% due 2021

    15      17

6.500% due 2025

    4      4

8.500% due 2025

    23      27

3.327% due 2027 (Ê)

    18      19

7.000% due 2027

    142      159

8.500% due 2027

    173      199

2.997% due 2028 (Ê)

    18      19

3.115% due 2028 (Ê)

    15      15

7.500% due 2028

    36      41

6.500% due 2029

    96      105

7.500% due 2029

    59      66

3.389% due 2030 (Ê)

    28      29

6.500% due 2030

    7      8

7.000% due 2030

    35      38

7.500% due 2030

    254      288

8.000% due 2030

    56      65

8.500% due 2030

    66      77

6.500% due 2031

    760      828

7.000% due 2031

    363      404

7.500% due 2031

    84      95

8.000% due 2031

    230      264

7.000% due 2032

    161      179

7.500% due 2032

    167      188

2.744% due 2033 (Ê)

    417      427

3.354% due 2033 (Ê)

    74      76

5.000% due 2033

    850      887

5.500% due 2033

    3,019      3,215

6.000% due 2033

    74      80

6.500% due 2033

    283      308

7.500% due 2033

    71      80

2.873% due 2034 (Ê)

    513      526

3.417% due 2034 (Ê)

    87      90

3.520% due 2034 (Ê)

    925      960

3.645% due 2034 (Ê)

    1,647      1,711

5.500% due 2034

    1,124      1,196

6.000% due 2034

    100      108

3.167% due 2035 (Ê)

    1,558      1,611

4.873% due 2035 (Ê)

    3,029      3,166

5.000% due 2035

    318      331

5.027% due 2035 (Ê)

    380      399

6.000% due 2035

    553      598

5.500% due 2036

    604      642

5.835% due 2036 (Ê)

    1,301      1,373

5.902% due 2036 (Ê)

    1,877      1,972

5.967% due 2036 (Ê)

    1,462      1,555

6.000% due 2036

    234      252

5.461% due 2037 (Ê)

    1,662      1,759

5.500% due 2037

    2,248      2,285

5.676% due 2037 (Ê)

    7,120      7,550
     Principal
Amount ($)
or Shares		      Market
Value
$

5.697% due 2037 (Ê)

    1,054      1,118

5.702% due 2037 (Ê)

    2,635      2,794

5.755% due 2037 (Ê)

    1,998      2,118

5.799% due 2037 (Ê)

    739      784

5.809% due 2037 (Ê)

    2,344      2,487

5.901% due 2037 (Ê)

    1,050      1,115

6.000% due 2037

    11,370      12,198

5.000% due 2038

    717      746

5.500% due 2038

    89,377      94,879

6.000% due 2038

    84,703      90,846

6.500% due 2038

    1,296      1,398

4.500% due 2039

    29,984      30,314

5.000% due 2039

    65,415      68,075

6.000% due 2039

    113      122

5.000% due 2040

    4,000      4,162

30 Year TBA (Ï)
5.000%

    21,000      21,824

5.500%

    9,000      9,541

6.000%

    25,000      26,781

Freddie Mac Reference REMIC
Series 2006-R00 Class AK
5.750% due 12/15/18

    1,502      1,567

Freddie Mac REMICS
Series 1991-103 Class Z
9.000% due 02/15/21

    54      54

Series 1994-167 Class J
6.000% due 04/15/23

    5      5

Series 1994-173 Class Z
7.000% due 05/15/24

    266      280

Series 1999-212 Class SG (Ê)
Interest Only STRIP
6.750% due 06/17/27

    1,164      155

Series 2000-224 Class SC (Ê)
Interest Only STRIP
7.267% due 08/15/30

    39      6

Series 2000-226 Class F (Ê)
0.683% due 11/15/30

    58      58

Series 2001-229 Class KF (Ê)
0.481% due 07/25/22

    913      910

Series 2001-232 Class ZQ
6.500% due 06/15/31

    1,893      2,079

Series 2002-246 Class SJ (Ê)
Interest Only STRIP
7.767% due 03/15/32

    158      18

Series 2003-256 Class FJ (Ê)
0.633% due 02/15/33

    1,321      1,312

Series 2003-259 Class IQ
Interest Only STRIP
5.000% due 06/15/17

    603      25

Series 2003-261 Class UI
Interest Only STRIP
6.500% due 05/15/33

    62      10

Series 2003-262 Class QH
5.000% due 05/15/33

    1,590      1,604

5.000% due 06/15/33

    1,625      1,675

Series 2003-264 Class IM
Interest Only STRIP
7.000% due 07/15/33

    359      64

 

108   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2003-266 Class MA
4.500% due 10/15/31

    800      836

Series 2003-269 Class LG
4.500% due 10/15/23

    1,370      1,387

Series 2003-272 Class TA
4.500% due 12/15/33

    1,275      1,237

Series 2004-275 Class FM (Ê)
0.583% due 12/15/30

    161      161

Series 2004-277 Class UF (Ê)
0.531% due 06/15/33

    1,851      1,843

Series 2004-281 Class DF (Ê)
0.681% due 06/15/23

    517      514

Series 2004-287 Class AL
5.000% due 10/15/24

    3,785      4,061

Series 2005-294 Class FA (Ê)
0.401% due 03/15/20

    985      969

Series 2005-299 Class KF (Ê)
0.631% due 06/15/35

    273      271

Series 2005-301 Class IM
Interest Only STRIP
5.500% due 01/15/31

    1,278      78

Series 2005-303 Class XA (Ê)(Å)
Zero coupon 09/15/35

    214      191

Series 2005-305 Class JF (Ê)
0.531% due 10/15/35

    228      227

Series 2006-312 Class HT
5.000% due 03/15/26

    3,911      4,113

Series 2006-313 Class FP (Ê)(Å)
Zero coupon due 04/15/36

    365      364

Series 2006-313 Class X (Ê)(Å)
Zero coupon 04/15/36

    41      40

Series 2006-314 Class LF (Ê)
0.531% due 05/15/36

    449      444

Series 2006-315 Class EQ
5.000% due 05/15/26

    1,920      2,021

Series 2006-316 Class X (Ê)(Å)
Zero coupon 06/15/36

    35      35

Series 2007-327 Class SX (Ê)(Å)
Zero coupon 07/15/36

    115      112

Series 2007-327 Class UF (Ê)(Å)
Zero coupon 02/15/37

    135      134

Series 2007-327 Class WF (Ê)(Å)
Zero coupon 09/15/36

    67      66

Series 2007-330 Class GL (Ê)(Å)
16.114% due 04/15/37

    237      263

Series 2007-333 Class BF (Ê)
0.381% due 07/15/19

    2,363      2,330

Series 2007-333 Class FT (Ê)
0.381% due 08/15/19

    5,401      5,321

Series 2009-356 Class LB
4.000% due 08/15/29

    3,828      3,567

Series 2010-362 Class EL
4.000% due 01/15/30

    2,930      2,679

Freddie Mac Strips
Series 1998-191 Class IO
Interest Only STRIP
8.000% due 01/01/28

    45      9
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 1998-194 Class IO
Interest Only STRIP
6.500% due 04/01/28

    187      45

Series 2001-212 Class IO
Interest Only STRIP
6.000% due 05/01/31

    236      58

Series 2001-215 Class IO
Interest Only STRIP
8.000% due 06/01/31

    136      36

Series 2008-256 Class 56 (Å)
Interest Only STRIP
4.500% due 05/15/23

    22,936      2,282

GE Capital Commercial Mortgage Corp.
Series 2001-1 Class A2
6.531% due 05/15/33

    5,900      6,131

Series 2001-1 Class B
6.719% due 05/15/33

    1,701      1,766

Series 2002-1A Class A3
6.269% due 12/10/35

    1,240      1,318

Series 2002-3A Class A1
4.229% due 12/10/37

    1,654      1,672

Series 2003-C2 Class A4
5.145% due 07/10/37

    20      21

Series 2004-C2 Class A2
4.119% due 03/10/40

    20      20

Ginnie Mae I
11.000% due 2013

    4      5

10.500% due 2015

    33      37

11.000% due 2015

    1      1

7.000% due 2016

    5      5

10.500% due 2016

    42      47

11.000% due 2020

    22      24

10.500% due 2021

    42      47

8.000% due 2022

    14      16

10.000% due 2022

    67      75

7.500% due 2024

    21      24

8.000% due 2025

    10      11

10.000% due 2025

    52      59

8.000% due 2030

    248      285

7.500% due 2031

    49      55

8.000% due 2031

    2      2

7.500% due 2032

    15      17

8.000% due 2032

    12      14

6.500% due 2037

    18,392      19,741

6.000% due 2038

    2,904      3,111

6.500% due 2038

    17,090      18,336

0.990% due 2039

    23,518      25,054

4.500% due 2039

    54,064      54,862

5.000% due 2039

    24,007      25,059

6.000% due 2039

    60,000      64,275

6.500% due 2039

    8,519      9,141

30 Year TBA (Ï)
4.500%

    52,610      53,301

5.500%

    5,215      5,519

6.000%

    3,000      3,203

Ginnie Mae II
3.125% due 2023 (Ê)

    128      131

3.625% due 2023 (Ê)

    26      27

 

Russell Strategic Bond Fund   109

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

4.125% due 2023 (Ê)

    113      117

4.375% due 2023 (Ê)

    160      165

3.125% due 2024 (Ê)

    100      103

3.625% due 2024 (Ê)

    170      174

4.125% due 2024 (Ê)

    102      106

3.625% due 2025 (Ê)

    10      10

4.125% due 2025 (Ê)

    9      9

4.375% due 2025 (Ê)

    290      300

4.125% due 2026 (Ê)

    85      87

8.500% due 2026

    26      30

3.625% due 2027 (Ê)

    158      161

4.125% due 2027 (Ê)

    6      6

4.375% due 2027 (Ê)

    117      120

4.375% due 2028 (Ê)

    3      3

4.125% due 2029 (Ê)

    201      207

4.375% due 2030 (Ê)

    78      80

30 Year TBA (Ï)
5.000%

    2,000      2,073

GMAC Commercial Mortgage Securities, Inc.
Series 2001-C1 Class B
6.670% due 04/15/34

    985      1,006

Series 2003-C3 Class A4
5.023% due 04/10/40

    218      225

Series 2004-C3 Class A4
4.547% due 12/10/41

    475      482

GMAC Mortgage Corp. Loan Trust
Series 2004-JR1 Class A6 (Ê)
0.681% due 12/25/33

    777      635

Series 2005-AR2 Class 4A (Ê)
5.167% due 05/25/35

    7,389      6,255

Series 2005-AR6 Class 3A1
5.294% due 11/19/35

    2,820      2,319

Goldman Sachs Mortgage Securities Corp. II
Series 2007-GG1 Class A4
5.805% due 08/10/45

    10,575      9,195

Government National Mortgage Association
Series 1998-23 Class ZA
6.500% due 09/20/28

    1,446      1,538

Series 1999-27 Class SE (Ê)
Interest Only STRIP
8.367% due 08/16/29

    154      29

Series 1999-40 Class FE (Ê)
0.783% due 11/16/29

    722      724

Series 1999-44 Class SA (Ê)
Interest Only STRIP
8.317% due 12/16/29

    230      41

Series 2000-29 Class S (Ê)
Interest Only STRIP
8.269% due 09/20/30

    24      4

Series 2001-46 Class SA (Ê)
Interest Only STRIP
7.347% due 09/16/31

    20      3

Series 2002-27 Class SA (Ê)
Interest Only STRIP
7.767% due 05/16/32

    35      6

Series 2009-69 Class CN
5.000% due 11/20/38

    1,340      1,358
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2009-93 Class D
5.000% due 10/20/39

    3,885      3,925

Series 2009-93 Class DM
5.500% due 04/16/39

    3,944      4,214

Greenpoint Mortgage Funding Trust (Ê)
Series 2006-AR5 Class A1A
0.311% due 10/25/46

    3,036      2,645

Series 2006-AR6 Class A1A
0.311% due 10/25/46

    613      556

Series 2006-AR8 Class 1A1A
0.311% due 01/25/47

    362      315

Series 2007-AR3 Class A1
0.451% due 06/25/37

    5,235      2,557

Greenpoint Mortgage Pass-Through Certificates (Ê)
Series 2003-1 Class A1
3.813% due 10/25/33

    1,078      803

Greenwich Capital Commercial Funding Corp.
Series 2003-C2 Class A2
4.022% due 01/05/36

    696      700

Series 2004-GG1 Class A7
5.317% due 06/10/36

    6,065      6,314

Series 2005-GG3 Class A4
4.799% due 08/10/42

    100      100

Series 2005-GG5 Class A41
5.243% due 04/10/37

    3,720      3,835

Series 2006-GG7 Class A4
5.883% due 07/10/38

    10,790      10,511

Series 2006-GG7 Class AM
5.883% due 07/10/38

    8,300      6,892

Series 2007-GG9 Class A4
5.444% due 03/10/39

    20,110      18,629

GS Mortgage Securities Corp. II
Series 2004-GG2 Class A3
4.602% due 08/10/38

    353      358

Series 2006-GG6 Class A4
5.553% due 04/10/38

    5,030      4,835

Series 2006-GG8 Class A4
5.560% due 11/10/39

    735      681

Series 2006-GG8 Class AAB
5.535% due 11/10/39

    2,735      2,756

Series 2007-EOP Class A1 (Ê)(Þ)
0.323% due 03/06/20

    2,345      2,235

GSMPS Mortgage Loan Trust (Þ)
Series 1998-1 Class A
8.000% due 09/19/27

    124      125

Series 1998-3 Class A
7.750% due 09/19/27

    129      125

Series 1999-3 Class A
8.000% due 08/19/29

    309      315

Series 2005-RP1 Class 1A3
8.000% due 01/25/35

    1,257      1,164

Series 2005-RP1 Class 1A4
8.500% due 01/25/35

    903      838

Series 2006-RP1 Class 1A2
7.500% due 01/25/36

    762      684

 

110   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-RP1 Class 1A3
8.000% due 01/25/36

    476      446

GSR Mortgage Loan Trust
Series 2004-5 Class 3A2 (Ê)
4.663% due 05/25/34

    2,100      2,080

Series 2004-7 Class 1A1
3.726% due 06/25/34

    426      377

Series 2004-11 Class 1A1
3.760% due 09/25/34

    330      271

Series 2004-12 Class 2A3
3.527% due 12/25/34

    333      255

Series 2005-AR6 Class 2A1 (Ê)
2.955% due 09/25/35

    3,593      3,324

Series 2005-AR7 Class 6A1
5.232% due 11/25/35

    2,510      2,297

Series 2006-1F Class 5A2
6.000% due 02/25/36

    629      176

Series 2006-3F Class 2A3
5.750% due 03/25/36

    5,736      4,985

Series 2007-AR1 Class 1A1
3.713% due 03/25/37

    17,531      12,018

Series 2007-AR1 Class B1
5.599% due 03/25/37

    2,047      52

Harborview Mortgage Loan Trust
Series 2005-2 Class 2A1A (Ê)
Interest Only STRIP
0.453% due 05/19/35

    185      115

Series 2005-4 Class 3A1
4.956% due 07/19/35

    1,750      1,262

Series 2005-5 Class 2A1B (Ê)
Interest Only STRIP
0.523% due 07/19/45

    340      103

Series 2005-10 Class 2A1A (Ê)
Interest Only STRIP
0.543% due 11/19/35

    2,162      1,309

Series 2005-10 Class 2A1B (Ê)
Interest Only STRIP
0.613% due 11/19/35

    786      281

Series 2005-14 Class 3A1A
5.314% due 12/19/35

    597      466

Series 2005-15 Class 2A11 (Ê)
Interest Only STRIP
0.501% due 10/20/45

    1,185      656

Series 2005-16 Class 2A1A (Ê)
Interest Only STRIP
0.473% due 01/19/36

    454      251

Series 2005-16 Class 3A1B (Ê)
Interest Only STRIP
0.573% due 01/19/36

    915      277

Series 2006-1 Class 2A1A (Ê)
Interest Only STRIP
0.473% due 03/19/36

    1,673      934

Series 2006-5 Class 2A1A (Ê)
0.413% due 07/19/46

    3,019      1,651

Series 2006-7 Class 2A1A (Ê)
0.433% due 09/19/46

    1,639      903

Series 2006-9 Class 2A1A (Ê)
0.443% due 11/19/36

    15,385      8,538
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-10 Class 2A1A (Ê)
0.413% due 11/19/36

    2,425      1,430

Series 2006-10 Class 2A1B (Ê)
Interest Only STRIP
0.473% due 11/19/36

    2,176      609

Series 2006-12 Class 2A2B (Ê)
0.483% due 01/19/38

    4,865      1,592

Series 2006-14 Class 2A1A (Ê)
Interest Only STRIP
0.383% due 01/25/47

    6,128      3,434

Series 2006-14 Class 2A1B (Ê)
Interest Only STRIP
0.433% due 01/25/47

    1,686      407

Series 2007-1 Class 2A1A (Ê)
Interest Only STRIP
0.361% due 04/19/38

    1,639      855

Impac Secured Assets CMN Owner Trust (Ê)
Series 2005-2 Class A1
0.551% due 03/25/36

    868      420

Series 2006-4 Class A2A
0.311% due 01/25/37

    68      65

Indymac Index Mortgage Loan Trust
Series 2004-AR1 Class 2A
2.956% due 12/25/34

    114      82

Series 2005-AR1 Class 1A1
3.261% due 08/25/35

    3,970      2,302

Series 2005-AR2 Class 1A21
5.639% due 12/25/35

    901      592

Series 2005-AR3 Class 1A1
3.096% due 01/25/36

    1,113      698

Series 2006-AR1 Class 1A1A (Ê)
0.321% due 11/25/46

    119      116

Series 2006-AR1 Class 1A4A (Ê)
0.401% due 11/25/46

    8,529      3,011

Series 2006-AR2 Class A2 (Ê)
0.311% due 11/25/36

    687      355

Series 2006-AR3 Class 2A1A (Ê)
0.401% due 01/25/37

    7,816      3,941

Series 2006-AR4 Class A1B (Ê)
0.531% due 05/25/46

    5,657      1,307

Series 2006-AR8 Class A2A3 (Ê)
0.351% due 07/25/46

    1,967      1,947

Series 2006-AR9 Class 1A1
5.610% due 06/25/36

    8,857      5,662

Series 2007-AR5 Class 1A1
5.559% due 05/25/37

    9,034      4,825

JPMorgan Alternative Loan Trust
Series 2006-A4 Class A7
6.300% due 09/25/36

    15,975      7,876

JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2001-CIB Class A2
6.044% due 11/15/35

    351      358

Series 2001-CIB Class D
6.751% due 03/15/33

    115      117

Series 2002-C1 Class A3
5.376% due 07/12/37

    7,270      7,605

 

Russell Strategic Bond Fund   111

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2002-C2 Class A2
5.050% due 12/12/34

    12,000      12,470

Series 2003-C1 Class A2
4.985% due 01/12/37

    3,748      3,852

Series 2004-LN2 Class A1
4.475% due 07/15/41

    3,568      3,619

Series 2005-LDP Class A3A1
4.871% due 10/15/42

    4,125      4,181

Series 2005-LDP Class A4
4.918% due 10/15/42

    1,595      1,606

Series 2005-LDP Class X1 (Þ)
Interest Only STRIP
0.080% due 12/15/44

    946,084      3,159

Series 2006-CB1 Class A4
5.814% due 06/12/43

    11,910      11,949

5.552% due 05/12/45

    3,960      3,797

Series 2006-LDP Class A3
5.336% due 05/15/47

    5,313      4,804

Series 2006-LDP Class A3B
5.447% due 05/15/45

    3,675      3,688

Series 2006-LDP Class A4
5.475% due 04/15/43

    6,575      6,479

5.874% due 04/15/45

    5,405      5,427

5.399% due 05/15/45

    3,705      3,546

Series 2006-LDP Class AJ
5.874% due 04/15/45

    2,650      1,623

Series 2007-CB1 Class A4
5.440% due 06/12/47

    7,000      6,554

Series 2007-CB2 Class A4
5.794% due 02/12/51

    6,270      5,862

Series 2007-CB2 Class AJ
6.098% due 02/12/51

    1,475      722

Series 2007-LD1 Class A4
5.882% due 02/15/51

    3,365      3,166

Series 2007-LDP Class A3
5.420% due 01/15/49

    10,350      9,207

Series 2009-IWS Class A1 (Þ)
4.314% due 12/05/19

    2,777      2,797

Series 2009-IWS Class A2 (Þ)
5.633% due 12/05/27

    2,700      2,786

JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1 (Ê)
5.017% due 02/25/35

    665      661

Series 2005-A4 Class 1A1
5.379% due 07/25/35

    1,723      1,561

Series 2005-A4 Class 2A1
5.041% due 07/25/35

    4,716      4,049

Series 2005-A6 Class 1A2
5.149% due 09/25/35

    2,650      2,056

Series 2005-A8 Class 1A1
5.400% due 11/25/35

    5,516      4,936

Series 2005-S3 Class 1A2
5.750% due 01/25/36

    348      298

Series 2006-A2 Class 2A1
5.757% due 04/25/36

    395      355

Series 2006-A3 Class 2A3
5.568% due 05/25/36

    845      504

Series 2006-A6 Class 1A2
5.982% due 10/25/36

    366      313
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-S4 Class A6
6.000% due 01/25/37

    193      186

Series 2007-A1 Class 1A1 (Ê)
4.016% due 07/25/35

    554      507

Series 2007-A1 Class 2A2 (Ê)
3.568% due 07/25/35

    991      928

Series 2007-A1 Class 4A2 (Ê)
4.069% due 07/25/35

    503      471

Series 2007-A1 Class 5A2 (Ê)
3.728% due 07/25/35

    963      894

Series 2007-A1 Class B1
4.397% due 07/25/35

    156      19

Series 2007-A4 Class 3A3
5.873% due 06/25/37

    7,201      6,231

Series 2007-S3 Class 1A8
6.000% due 08/25/37

    13,851      11,905

LB Commercial Conduit Mortgage Trust
Series 1999-C1 Class B
6.930% due 06/15/31

    30      30

LB-UBS Commercial Mortgage Trust
Series 2000-C4 Class A2
7.370% due 08/15/26

    374      378

Series 2000-C4 Class B
7.480% due 07/15/32

    55      56

Series 2000-C5 Class A2
6.510% due 12/15/26

    326      334

Series 2001-C2 Class A2
6.653% due 11/15/27

    14,645      15,287

Series 2002-C2 Class F
5.794% due 07/15/35

    939      880

Series 2002-C2 Class G
5.873% due 07/15/35

    1,433      1,183

Series 2002-C4 Class A5
4.853% due 09/15/31

    1,000      1,045

Series 2003-C8 Class A2
4.207% due 11/15/27

    116      117

Series 2004-C4 Class A2
4.567% due 06/15/29

    1,372      1,384

Series 2006-C1 Class A4
5.156% due 02/15/31

    4,500      4,569

Series 2006-C3 Class A4
5.661% due 03/15/39

    3,130      3,140

Series 2006-C4 Class A4
5.882% due 06/15/38

    2,975      2,965

Series 2007-C1 Class A3
5.398% due 02/15/40

    3,355      3,381

Series 2007-C1 Class A4
5.424% due 02/15/40

    7,565      6,845

Series 2007-C6 Class A4
5.858% due 07/15/40

    3,990      3,607

Series 2007-C7 Class A3
5.866% due 09/15/45

    7,270      6,802

Series 2007-C7 Class AM
6.166% due 09/15/45

    1,130      887

Lehman Brothers Floating Rate Commercial Mortgage Trust (Ê)(Þ)
Series 2006-LLF Class A2
0.353% due 09/15/21

   1,802      1,604

 

112   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Lehman Mortgage Trust
Series 2005-2 Class 2A3
5.500% due 12/25/35

    660      579

Series 2005-3 Class 1A3
5.500% due 01/25/36

    3,844      3,495

Series 2006-8 Class 2A1 (Ê)
0.651% due 12/25/36

    8,783      4,315

Series 2007-8 Class 3A1
7.250% due 09/25/37

    14,760      10,064

Lehman XS Trust (Ê)
Series 2007-4N Class 3A2A
1.231% due 03/25/47

    6,755      3,162

Series 2007-7N Class 1A2
0.471% due 06/25/47

    10,367      3,720

Series 2007-16N Class 2A2
1.081% due 09/25/47

    13,006      7,071

Luminent Mortgage Trust (Ê)
Series 2006-1 Class A1
0.471% due 04/25/36

    1,727      868

Series 2006-1 Class A2
0.551% due 04/25/36

    8,199      1,692

Series 2006-2 Class A1A
0.431% due 02/25/46

    3,192      1,703

Series 2006-3 Class 12A2
0.491% due 05/25/36

    5,706      1,524

Series 2006-5 Class A1A
0.421% due 07/25/36

    2,886      1,485

Series 2006-6 Class A1
0.431% due 10/25/46

    1,295      743

Master Specialized Loan Trust (Þ)
Series 2005-2 Class A2
5.150% due 07/25/35

    520      459

Mastr Adjustable Rate Mortgages Trust
Series 2004-10 Class 2A2
4.099% due 10/25/34

    9      3

Series 2005-1 Class B1
3.838% due 03/25/35

    1,138      144

Series 2005-6 Class 7A1
5.331% due 06/25/35

    527      420

Series 2005-7 Class 2A2
5.307% due 09/25/35

    1,870      511

Series 2006-1 Class I2A3 (Ê)
1.221% due 01/25/47

    3,772      1,155

Series 2006-2 Class 3A1
4.844% due 01/25/36

    457      387

Series 2006-2 Class 4A1
4.981% due 02/25/36

    4,006      3,700

Series 2006-OA2 Class 4A1B (Ê)
1.681% due 12/25/46

    12,994      5,253

Mastr Alternative Loans Trust
Series 2003-4 Class B1
5.710% due 06/25/33

    1,525      996

Series 2003-6 Class 3A1
8.000% due 09/25/33

    75      74

Series 2004-10 Class 5A6
5.750% due 09/25/34

    2,186      2,135
     Principal
Amount ($)
or Shares		      Market
Value
$

Mastr Asset Securitization Trust (Ê)
Series 2003-7 Class 4A35
0.631% due 09/25/33

    1,190      1,120

Series 2003-11 Class 6A8
0.731% due 12/25/33

    2,313      2,143

Series 2004-4 Class 2A2
0.681% due 04/25/34

    383      355

Series 2005-2 Class 1A1
5.250% due 11/25/35

    878      802

Mastr Reperforming Loan Trust (Þ)
Series 2005-1 Class 1A5
8.000% due 08/25/34

    801      764

Series 2005-2 Class 1A4
8.000% due 05/25/35

    1,367      1,294

Mellon Residential Funding Corp. (Ê)
Series 2000-TBC Class A1
0.712% due 06/15/30

    766      644

Merrill Lynch Alternative Note Asset (Ê)
Series 2007-OAR Class A1
0.421% due 07/25/47

    345      180

Merrill Lynch Floating Trust (Ê)(Þ)
Series 2006-1 Class A1
0.302% due 06/15/22

    2,381      2,163

Merrill Lynch Mortgage Investors, Inc.
Series 2005-A2 Class A2
3.098% due 02/25/35

    780      701

Series 2005-A8 Class A1B1
5.250% due 08/25/36

    130      129

Series 2005-A10 Class A (Ê)
0.441% due 02/25/36

    628      432

Series 2006-AF1 Class AF2B
6.250% due 08/25/36

    1,853      1,455

Merrill Lynch Mortgage Trust
0.770% due 01/01/21

    4,800      4,146

Series 2002-MW1 Class J (Þ)
5.695% due 07/12/34

    740      271

Series 2004-MKB Class A2
4.353% due 02/12/42

    870      878

Series 2005-CIP Class A2
4.960% due 07/12/38

    75      77

Series 2005-CIP Class AM
5.107% due 07/12/38

    2,130      1,899

Series 2005-CKI Class A6
5.233% due 11/12/37

    250      258

Series 2005-LC1 Class A4
5.291% due 01/12/44

    105      109

Series 2006-C1 Class A4
5.656% due 05/12/39

    825      842

Series 2006-C1 Class ASB
5.656% due 05/12/39

    215      220

Series 2007-C1 Class AM
5.828% due 06/12/50

    360      279

Series 2008-C1 Class A4
5.690% due 02/12/51

    3,240      2,941

Series 2008-C1 Class AJ
6.266% due 02/12/51

    3,245      1,604

 

Russell Strategic Bond Fund   113

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-5 Class A4
5.378% due 08/12/48

    1,880      1,525

Series 2007-6 Class A4
5.485% due 03/12/51

    900      745

Series 2007-7 Class A4
5.747% due 06/12/50

    7,870      6,790

Series 2007-8 Class A3
5.957% due 08/12/49

    1,100      1,008

MLCC Mortgage Investors, Inc. (Ê)
Series 2004-HB1 Class A2
0.770% due 04/25/29

    212      160

Series 2005-2 Class 3A
1.231% due 10/25/35

    242      192

Series 2005-3 Class 5A
0.481% due 11/25/35

    1,157      967

Morgan Stanley Capital I
Series 1999-FNV Class G (Þ)
6.120% due 03/15/31

    592      588

Series 2004-IQ8 Class A3
4.500% due 06/15/40

    3      3

Series 2004-T15 Class A3
5.030% due 06/13/41

    2,500      2,580

Series 2005-HQ7 Class A4
5.207% due 11/14/42

    4,000      4,083

Series 2005-IQ1 Class AAB
5.178% due 09/15/42

    4,115      4,255

Series 2006-HQ1 Class A4
5.328% due 11/12/41

    1,975      1,907

Series 2006-HQ9 Class A4
5.731% due 07/12/44

    4,089      4,113

Series 2006-IQ1 Class A4
5.771% due 10/15/42

    10,000      10,029

Series 2006-T23 Class A1
5.682% due 08/12/41

    51      53

Series 2007-HQ1 Class A3
5.569% due 12/15/44

    2,015      1,687

Series 2007-HQ1 Class D (Þ)
6.302% due 12/15/44

    2,092      421

Series 2007-IQ1 Class A4
5.364% due 03/15/44

    4,921      4,457

5.692% due 04/15/49

    1,950      1,712

5.809% due 12/12/49

    8,460      7,817

Series 2007-IQ1 Class AM
5.406% due 03/15/44

    2,630      1,862

Series 2007-T27 Class A1
5.606% due 06/11/42

    2,144      2,221

Morgan Stanley Dean Witter Capital I (Þ)
Series 2001-TOP Class E
7.363% due 02/15/33

    280      262

Morgan Stanley Mortgage Loan Trust
Series 2006-2 Class 6A
6.500% due 02/25/36

    2,671      2,026

Morgan Stanley Reremic Trust (Þ)
Series 2009-GG1 Class A4B
5.805% due 08/12/45

    8,790      6,104
     Principal
Amount ($)
or Shares		      Market
Value
$

MortgageIT Trust (Ê)
Series 2006-1 Class 2A1B
0.511% due 04/25/36

    3,361      878

Nomura Asset Acceptance Corp.
Series 2005-WF1 Class 2A2
4.786% due 03/25/35

    1,235      1,143

Series 2006-AP1 Class A2
5.515% due 01/25/36

    6,622      3,990

PHH Alternative Mortgage Trust (Ê)
Series 2007-3 Class A1
0.341% due 07/25/37

    3,372      2,866

Prime Mortgage Trust
Series 2004-CL1 Class 1A1
6.000% due 02/25/34

    232      238

Series 2004-CL1 Class 1A2 (Ê)
0.631% due 02/25/34

    107      97

Series 2004-CL1 Class 2A2 (Ê)
0.631% due 02/25/19

    22      21

Series 2006-CL1 Class A1 (Ê)
0.731% due 02/25/35

    1,785      1,251

RESI Finance, LP (Ê)(Þ)
Series 2003-D Class B3
1.531% due 12/10/35

    1,902      1,069

Series 2003-D Class B4
1.731% due 12/10/35

    2,212      1,086

Series 2007-B Class B5
Interest Only STRIP
1.333% due 04/15/39

    2,760      31

Residential Accredit Loans, Inc.
Series 2003-QS1 Class A12 (Ê)
Interest Only STRIP
7.819% due 05/25/33

    4,798      1,036

Series 2004-QS5 Class A1
4.600% due 04/25/34

    948      913

Series 2004-QS5 Class A6 (Ê)
0.831% due 04/25/34

    322      243

Series 2004-QS8 Class A4 (Ê)
0.631% due 06/25/34

    1,673      1,433

Series 2005-QA1 Class A41
5.661% due 09/25/35

    1,309      892

Series 2005-QA8 Class NB3
5.474% due 07/25/35

    1,656      1,096

Series 2005-QO4 Class 2A1 (Ê)
0.511% due 12/25/45

    2,059      1,141

Series 2005-QO5 Class A1 (Ê)
1.481% due 01/25/46

    4,795      2,596

Series 2005-QS1 Class 2A1
6.000% due 09/25/35

    4,213      3,115

Series 2005-QS1 Class 2A3
5.750% due 09/25/35

    10,025      7,709

Series 2005-QS7 Class A1
5.500% due 06/25/35

    705      596

Series 2006-QO1 Class 1A1 (Ê)
0.491% due 02/25/46

    470      194

Series 2006-QO1 Class 2A1 (Ê)
0.501% due 02/25/46

    553      212

Series 2006-QO1 Class A1 (Ê)
0.391% due 01/25/37

    665      369

 

114   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-QO1 Class A2 (Ê)
0.431% due 01/25/37

    4,435      997

Series 2006-QO4 Class 2A2 (Ê)
0.471% due 04/25/46

    1,033      248

Series 2006-QO5 Class 2A2 (Ê)
0.461% due 05/25/46

    10,626      2,080

Series 2006-QO7 Class 3A1 (Ê)
0.331% due 09/25/46

    6,500      6,179

Series 2006-QS6 Class 1A13
6.000% due 06/25/36

    2,579      1,853

Series 2007-QH9 Class A1
6.501% due 11/25/37

    14,412      7,106

Series 2007-QO4 Class A1 (Ê)
0.431% due 05/25/47

    26,050      13,555

Series 2007-QS6 Class A1 (Ê)
0.561% due 04/25/37

    15,656      6,099

Residential Asset Mortgage Products, Inc.
Series 2004-SL1 Class A3
7.000% due 11/25/31

    24      24

Series 2004-SL4 Class A3
6.500% due 07/25/32

    261      258

Residential Asset Securitization Trust
Series 2003-A15 Class 1A2 (Ê)
0.681% due 02/25/34

    2,083      1,856

Series 2005-A14 Class A5
5.500% due 12/25/35

    4,306      3,390

Series 2006-A11 Class 1A4
6.250% due 10/25/36

    594      336

Series 2007-A5 Class 2A3
6.000% due 05/25/37

    1,491      1,112

Series 2007-A9 Class A6
6.250% due 09/25/37

    10,438      7,169

Residential Funding Mortgage Securities I
Series 2003-S5 Class 1A2 (Ê)
0.681% due 11/25/18

    756      751

Series 2003-S14 Class A5 (Ê)
0.631% due 07/25/18

    1,586      1,284

Series 2003-S20 Class 1A7 (Ê)
0.731% due 12/25/33

    23      23

Series 2005-SA4 Class 1A21
5.201% due 09/25/35

    2,036      1,481

Series 2005-SA4 Class 2A1
5.215% due 09/25/35

    3,123      2,610

Series 2005-SA4 Class 2A2
5.192% due 09/25/35

    3,544      3,003

Series 2006-SA3 Class 3A1
6.037% due 09/25/36

    1,286      944

Series 2006-SA4 Class 2A1
6.099% due 11/25/36

    885      653

Series 2007-S5 Class A9
6.000% due 05/25/37

    875      533

Series 2007-S9 Class 1A1
6.000% due 10/25/37

    3,877      2,983

Resix Finance, Ltd. Credit-Linked Notes (Ê)(Þ)
Series 2003-D Class B7
Interest Only STRIP
5.981% due 12/10/35

    2,212      734
     Principal
Amount ($)
or Shares		      Market
Value
$

Salomon Brothers Mortgage Securities VII, Inc.
Series 2001-C1 Class C
6.729% due 12/18/35

    105      106

Series 2001-C2 Class C
0.010% due 11/13/36

    1,600      1,668

SBA CMBS Trust (Þ)
Series 2006-1A Class B
5.451% due 11/15/36

    3,725      3,841

Series 2006-1A Class D
5.852% due 11/15/36

    350      361

Sequoia Mortgage Trust (Ê)
Series 2004-3 Class A
0.929% due 05/20/34

    1,922      1,520

Structured Adjustable Rate Mortgage Loan Trust
Series 2004-5 Class 3A1
2.961% due 05/25/34

    2,201      1,983

Series 2004-12 Class 3A2
3.078% due 09/25/34

    936      814

Series 2004-16 Class 3A1
3.012% due 11/25/34

    4,242      3,594

Series 2004-18 Class 5A
5.500% due 12/25/34

    497      454

Series 2004-20 Class 3A1
2.816% due 01/25/35

    2,030      1,710

Series 2005-7 Class 1A3
3.185% due 04/25/35

    1,197      840

Series 2005-17 Class 3A1
5.198% due 08/25/35

    47      34

Series 2005-19X Class 1A1 (Ê)
0.551% due 10/25/35

    592      351

Series 2005-21 Class 7A1
5.991% due 11/25/35

    16,234      12,954

Series 2005-22 Class 4A2
5.336% due 12/25/35

    149      28

Series 2006-1 Class 2A3
5.665% due 02/25/36

    1,385      188

Series 2006-5 Class 5A4
5.495% due 06/25/36

    335      56

Series 2006-12 Class 2A1
5.818% due 01/25/37

    4,893      3,077

Structured Asset Mortgage Investments, Inc. (Ê)
Series 2005-AR5 Class A3
0.479% due 07/19/35

    334      274

Series 2005-AR8 Class A2
2.024% due 02/25/36

    2,980      1,588

Series 2006-AR1 Class 2A1
0.461% due 02/25/36

    775      467

Series 2006-AR1 Class 3A1
0.461% due 02/25/36

    608      338

Series 2006-AR2 Class A2
0.541% due 02/25/36

    310      88

Series 2006-AR3 Class 3A1
0.421% due 02/25/36

    715      349

Series 2006-AR6 Class 1A3
0.421% due 07/25/46

    1,484      727

 

Russell Strategic Bond Fund   115

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-AR7 Class A12
0.481% due 08/25/36

    4,959      1,099

Series 2006-AR8 Class A1A
0.431% due 10/25/36

    7,360      3,906

Series 2007-AR1 Class 1A2
0.431% due 01/25/37

    5,185      1,397

Series 2007-AR4 Class A4A
0.411% due 09/25/47

    6,473      3,324

Structured Asset Securities Corp.
Series 2003-26A Class 3A5
3.160% due 09/25/33

    2,577      2,321

Series 2004-12H Class 1A
6.000% due 05/25/34

    303      277

Series 2004-21X Class 1A3
4.440% due 12/25/34

    195      194

Series 2005-6 Class B2
Interest Only STRIP
5.316% due 05/25/35

    366      37

Suntrust Adjustable Rate Mortgage Loan Trust (Ê)
Series 2007-2 Class 3A3
5.689% due 04/25/37

    15,005      12,003

Suntrust Alternative Loan Trust (Ê)
Series 2006-1F Class 3A
0.581% due 04/25/36

    1,296      400

Thornburg Mortgage Securities Trust (Ê)
Series 2003-2 Class A1
0.911% due 04/25/43

    829      710

Series 2006-5 Class A1
0.351% due 10/25/46

    4,438      4,290

Series 2006-6 Class A1
0.341% due 11/25/46

    1,218      1,195

Wachovia Bank Commercial Mortgage Trust
Series 2004-C14 Class A2
4.368% due 08/15/41

    5,103      5,097

Series 2005-C16 Class A2
4.380% due 10/15/41

    1,436      1,462

Series 2005-C20 Class A4

5.238% due 07/15/42

    4,215      4,252

Series 2005-C20 Class A5

5.087% due 07/15/42

    60      61

Series 2005-C21 Class A4

5.208% due 10/15/44

    5,500      5,731

Series 2006-C28 Class A2
5.500% due 10/15/48

    360      369

Series 2006-C28 Class A4
5.572% due 10/15/48

    120      114

Series 2006-C29 Class E
5.516% due 11/15/48

    2,682      430

Series 2006-WL7 Class A1 (Ê)(þ)

0.322% due 09/15/21

    9,890      8,682

Series 2007-C31 Class A4

5.509% due 04/15/47

    684      569

Series 2007-WHL Class A1 (Ê)(þ)
0.313% due 06/15/20

    3,222      2,753
     Principal
Amount ($)
or Shares		      Market
Value
$

Washington Mutual Alternative Mortgage Pass-Through Certificates
Series 2005-4 Class CB11
5.500% due 06/25/35

    1,200      920

Series 2006-1 Class 4CB
6.500% due 02/25/36

    14,024      10,501

Series 2006-5 Class 3A2
6.000% due 07/25/36

    491      359

Series 2006-AR2 Class A1A (Ê)
1.484% due 04/25/46

    1,553      770

Series 2006-AR6 Class 1A (Ê)
0.421% due 07/25/46

    762      397

Series 2006-AR8 Class 2A (Ê)
1.081% due 10/25/46

    2,591      1,167

Series 2006-AR9 Class 2A (Ê)
1.384% due 11/25/46

    2,966      1,338

Series 2007-OA1 Class 2A (Ê)
0.951% due 12/25/46

    20,816      9,481

Series 2007-OA1 Class CA1C (Ê)
0.471% due 12/25/46

    3,105      189

Washington Mutual Mortgage Pass Through Certificates
Series 2002-AR9 Class 1A (Ê)
1.881% due 08/25/42

    177      132

Series 2003-S9 Class A2 (Ê)
0.781% due 10/25/33

    1,540      1,517

Series 2004-AR1 Class A
3.598% due 03/25/34

    191      177

Series 2004-AR3 Class A2
3.133% due 06/25/34

    2,486      2,388

Series 2004-CB3 Class 1A
6.000% due 10/25/34

    314      304

Series 2005-AR1 Class 1A1

4.825% due 10/25/35

    1,431      1,388

5.047% due 12/25/35

    1,098      1,015

Series 2005-AR1 Class A1A (Ê)
0.551% due 08/25/45

    1,047      786

Series 2005-AR1 Class A1A1 (Ê)
0.521% due 10/25/45

    3,205      2,295

0.491% due 11/25/45

    11,993      9,103

0.501% due 12/25/45

    373      283

Series 2005-AR1 Class A1A2 (Ê)
0.511% due 11/25/45

    928      559

0.521% due 12/25/45

    1,462      999

Series 2005-AR1 Class A1B1 (Ê)
0.481% due 11/25/45

    170      166

0.481% due 12/25/45

    655      640

Series 2005-AR6 Class B3 (Ê)
0.891% due 04/25/45

    1,725      65

Series 2005-AR8 Class 2A1A (Ê)
0.521% due 07/25/45

    893      651

Series 2006-AR1 Class 1A1
5.921% due 09/25/36

    1,516      1,133

Series 2006-AR1 Class 1A4
5.605% due 11/25/36

    6,670      5,050

Series 2006-AR1 Class 2A (Ê)
3.594% due 09/25/46

    509      328

 

116   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-AR1 Class 3A1A (Ê)
1.464% due 09/25/46

    1,340      733

Series 2006-AR2 Class 1A1
5.281% due 03/25/37

    8,873      7,216

Series 2006-AR7 Class 2A (Ê)
1.524% due 07/25/46

    8,922      5,349

Series 2006-AR8 Class 1A5
5.845% due 08/25/46

    242      53

Series 2006-AR8 Class 2A3 (Ê)
6.110% due 08/25/36

    165      33

Series 2007-HY3 Class 4A1
5.313% due 03/25/37

    7,568      6,343

Series 2007-HY3 Class 4B1
5.313% due 03/25/37

    1,762      162

Series 2007-HY4 Class 1A1 (Ê)
5.450% due 04/25/37

    1,910      1,356

Series 2007-OA2 Class 1A (Ê)
1.244% due 03/25/47

    2,157      1,130

Wells Fargo Alternative Loan Trust
Series 2007-PA2 Class 1A1
6.000% due 06/25/37

    2,382      1,714

Series 2007-PA6 Class A1
6.515% due 12/28/37

    11,616      8,264

Wells Fargo Mortgage Backed Securities Trust
Series 2003-K Class 1A2 (Ê)
4.471% due 11/25/33

    462      460

Series 2004-AA Class A1 (Ê)
4.980% due 12/25/34

    1,413      1,332

Series 2004-CC Class A1 (Ê)
4.940% due 01/25/35

    2,321      2,178

Series 2004-E Class A2 (Ê)
4.500% due 05/25/34

    316      314

Series 2004-EE Class 2A1 (Ê)
3.095% due 12/25/34

    121      114

Series 2004-H Class A1 (Ê)
4.528% due 06/25/34

    214      213

Series 2004-I Class 1A1
3.421% due 07/25/34

    1,159      1,132

Series 2004-T Class A1 (Ê)
3.242% due 09/25/34

    312      306

Series 2005-12 Class 1A7
5.500% due 11/25/35

    1,874      960

Series 2005-14 Class 2A1
5.500% due 12/25/35

    3,188      2,962

Series 2005-17 Class 1A1
5.500% due 01/25/36

    1,755      1,648

Series 2005-17 Class 1A2

5.500% due 01/25/36

    1,450      912

Series 2005-18 Class 1A1
5.500% due 01/25/36

    6,976      6,482

Series 2005-AR1 Class 1A1 (Ê)
4.605% due 06/25/35

    1,145      1,130

Series 2005-AR1 Class 2A1
3.177% due 10/25/35

    9,597      8,397

Series 2005-AR1 Class A2 (Ê)
5.386% due 08/25/35

    5,243      5,247
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2005-AR2 Class 2A2 (Ê)
3.741% due 03/25/35

    98      88

Series 2006-2 Class 2A3
5.500% due 03/25/36

    3,037      2,710

Series 2006-2 Class 3A1
5.750% due 03/25/36

    8,273      7,111

Series 2006-4 Class 1A8
5.750% due 04/25/36

    690      646

Series 2006-4 Class 2A3
5.750% due 04/25/36

    630      233

Series 2006-7 Class 2A1
6.000% due 06/25/36

    2,254      1,892

Series 2006-10 Class A19
6.000% due 08/25/36

    1,515      1,442

Series 2006-16 Class A15
5.000% due 11/25/36

    3,845      3,603

Series 2006-AR1 Class 1A2 (Ê)
6.022% due 09/25/36

    678      169

Series 2006-AR1 Class 2A2
5.706% due 11/25/36

    641      184

Series 2006-AR1 Class 2A4 (Ê)
6.054% due 10/25/36

    1,046      239

Series 2006-AR1 Class 5A1 (Ê)
5.587% due 07/25/36

    1,565      1,283

Series 2006-AR1 Class A1
5.316% due 10/25/36 (Ê)

    15,039      11,780

5.616% due 12/25/36

    3,853      3,469

Series 2006-AR1 Class A7
5.496% due 08/25/36

    3,018      1,096

Series 2006-AR2 Class 2A1
4.950% due 03/25/36

    2,485      2,200

Series 2006-AR4 Class 1A1 (Ê)
5.875% due 04/25/36

    2,192      1,894

Series 2006-AR4 Class 2A1 (Ê)
5.771% due 04/25/36

    3,706      3,220

Series 2006-AR5 Class 2A1 (Ê)
5.541% due 04/25/36

    633      517

Series 2006-AR6 Class 7A1 (Ê)
5.112% due 03/25/36

    9,634      8,685

Series 2007-8 Class 1A16
6.000% due 07/25/37

    776      636

Series 2007-10 Class 2A5
6.250% due 07/25/37

    1,834      1,656

Series 2007-11 Class A90
6.000% due 08/25/37

    2,245      2,007

Series 2007-13 Class A1
6.000% due 09/25/37

    3,833      3,785

Series 2007-14 Class 1A1
6.000% due 10/25/37

    4,876      4,411
         
        3,145,700
         
Municipal Bonds - 1.0%        

Chicago Transit Authority Revenue Bonds
6.300% due 12/01/21

    500      535

6.899% due 12/01/40

    5,200      5,670

 

Russell Strategic Bond Fund   117

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

City of Chicago Illinois General Obligation Unlimited (µ)
5.000% due 12/01/24

      17,715      18,807

City of Colorado Springs Colorado Revenue Bonds
5.000% due 11/15/33

      200      208

County of Cook Illinois General Obligation Unlimited (µ)
5.000% due 11/15/26

      15,000      15,723

Iowa Tobacco Settlement Authority Revenue Bonds
6.500% due 06/01/23

      405      342

Massachusetts Educational Financing Authority (Ê)
Series 2008-1 Class A1
1.199% due 04/25/38

      4,656      4,680

New Jersey Economic Development Authority Revenue Bonds
5.750% due 06/15/34

      980      913

Public Power Generation Agency Revenue Bonds
7.242% due 01/01/41

      100      100

San Diego Tobacco Settlement Revenue Funding Corp. Revenue Bonds
7.125% due 06/01/32

      1,125      902

State of California General Obligation Unlimited

        

7.500% due 04/01/34

      4,725      4,668

5.650% due 04/01/39 (Ê)

      700      727

7.550% due 04/01/39

      12,680      12,446

State of Illinois General Obligation Unlimited
4.071% due 01/01/14

      600      609

State of Louisiana Revenue Bonds (Ê)
3.000% due 05/01/43

      4,200      4,243

State of Texas General Obligation Unlimited
4.750% due 04/01/35

      600      600

Tobacco Settlement Finance Authority of West Virginia Revenue Bonds
7.467% due 06/01/47

      2,400      1,932

Tobacco Settlement Financing Corp. Revenue Bonds
5.500% due 06/01/26

      1,500      1,672
         
        74,777
         
Non-US Bonds - 0.9%        

Asian Development Bank
6.000% due 01/20/15

    AUD 3,790      3,381

Brazil Notas do Tesouro Nacional Serie F Series NTNF
10.000% due 01/01/17

    BRL 19,200      8,867

Bundesrepublik Deutschland
Series 08
4.250% due 07/04/18

    EUR 555      838

Byggingarsjodur Verkamanna
Series 2
3.750% due 04/15/34

    ISK 361,847      2,798
     Principal
Amount ($) or
Shares		      Market
Value
$

Series 3
3.750% due 06/15/44

    ISK 710,204      5,509

Canadian Government Bond
2.000% due 12/01/14

    CAD 4,000      3,665

4.500% due 06/01/15

    CAD 400      410

Cemex SAB de CV
4.750% due 03/05/14

    EUR 340      395

Colombia Government International Bond
9.850% due 06/28/27

    COP 8,858,000      5,151

Federative Republic of Brazil
12.500% due 01/05/22

    BRL 2,500      1,542

10.250% due 01/10/28

    BRL 2,600      1,390

France Government Bond
3.750% due 10/25/19

    EUR 2,350      3,317

Hellas Telecommunications Luxembourg V (Ê)
Series REGS
4.684% due 10/15/12

    EUR 1,875      1,989

Impress Holdings BV (Ê)
Series REGS
3.809% due 09/15/13

    EUR 875      1,159

Kreditanstalt fuer Wiederaufbau
6.000% due 03/28/17

    AUD 1,680      1,465

Mexican Bonos Desarr
8.500% due 11/18/38

    MXN 80,485      6,016

New South Wales Treasury Corp.
5.250% due 05/01/13

    AUD 955      848

Rhodia SA (Ê)
Series REGS
3.434% due 10/15/13

    EUR 1,500      1,929

United Kingdom Gilt
4.500% due 03/07/13

    GBP 9,000      15,396
         
        66,065
         
United States Government Agencies - 1.7%        

Fannie Mae
5.250% due 08/01/12

      2,290      2,487

Federal Home Loan Banks
0.500% due 05/10/11

      11,150      11,156

4.500% due 09/13/19

      18,700      19,522

Federal Home Loan Mortgage Corp.
2.125% due 09/21/12 (Ñ)

      5,185      5,289

2.875% due 02/09/15

      14,155      14,296

5.300% due 12/01/15

      8,300      9,285

Federal National Mortgage Association (Ñ)
Zero coupon due 10/09/19

      16,500      9,608

Freddie Mac

       

4.500% due 04/02/14

      12,000      12,903

5.000% due 11/13/14

      34,600      38,193

5.000% due 04/18/17

      4,600      5,055

Small Business Administration Participation Certificates
Series 1997-20D Class 1
7.500% due 04/01/17

      1,087      1,202

 

118   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Tennessee Valley Authority
5.500% due 07/18/17

    3,000      3,373
         
        132,369
         
United States Government Treasuries - 6.1%        

United States Treasury

        

Principal Only STRIP

        

Zero coupon due 05/15/21

    2,000      1,252

Zero coupon due 11/15/21

    24,142      14,651

Zero coupon due 11/15/26

    3,400      1,571

Zero coupon due 08/15/27

    4,100      1,823

Zero coupon due 11/15/27

    12,175      5,342

United States Treasury Inflation Indexed Bonds
1.625% due 01/15/15

    3,965      4,168

2.000% due 01/15/16

   13,264      14,197

2.500% due 07/15/16

    6,427      7,095

1.375% due 01/15/20

   9,277      9,351

2.000% due 01/15/26

    1,962      2,005

1.750% due 01/15/28

    40,143      39,165

United States Treasury Notes

        

0.650% due 07/31/11

    9,300      9,364

0.690% due 08/31/11

    58,900      59,277

0.790% due 10/31/11

    3,900      3,921

0.750% due 11/30/11 (Ñ)

    4,925      4,926

0.880% due 12/31/11

    8,565      8,599

1.375% due 01/15/13

    13,560      13,562

2.625% due 06/30/14

    60,045      61,448

2.625% due 12/31/14 (Ñ)

    19,475      19,760

2.250% due 01/31/15

    11,745      11,690

2.750% due 11/30/16

    800      786

3.250% due 12/31/16

    1,785      1,805

3.125% due 01/31/17

    11,500      11,531

3.750% due 11/15/18

    45,900      46,847

3.375% due 11/15/19

    7,960      7,807

8.000% due 11/15/21

    13,285      18,427

5.375% due 02/15/31

    700      792

4.750% due 02/15/37

    3,600      3,765

4.375% due 02/15/38 (Ñ)

    100      98

4.500% due 05/15/38

    3,200      3,208

3.500% due 02/15/39

    10,800      9,048

4.250% due 05/15/39

    8,000      7,665

4.500% due 08/15/39

    22,955      22,926

4.375% due 11/15/39

    38,600      37,756
         
        465,628
         

Total Long-Term Investments

(cost $7,119,775)

         6,876,960
         
Common Stocks - 0.0%        
Consumer Discretionary - 0.0%        

SuperMedia, Inc. (Æ)

    11,061      402

World Color Press, Inc. (Æ)

    18,544      89
         

Total Common Stocks

(cost $332)

         491
         
     Principal
Amount ($)
or Shares		      Market
Value
$
Investments in Other Funds - 0.2%     
Financial Services - 0.2%        

PIMCO Developing Local Markets Fund

    3,047,310      16,455
         

Total Investments in Other Funds

(cost $16,191)

         16,455
         
Preferred Stocks - 0.1%        
Consumer Discretionary - 0.0%        

Motors Liquidation Co.

    420,000      2,625
         
Financial Services - 0.1%        

DG Funding Trust (Å)

    479      4,244

Federal Home Loan Mortgage Corp.

    479,700      504

Federal National Mortgage Association (Æ)

    267,075      291
         
        5,039
         
Producer Durables - 0.0%        

Nexen, Inc.

    9,850      235
         

Total Preferred Stocks

(cost $24,210)

         7,899
         
Warrants & Rights - 0.0%        

Charter Communications, Inc. (Æ)
2014 Warrants

    13      79
         

Total Warrants & Rights

(cost $72)

         79
         
Short-Term Investments - 12.1%     

American Electric Power Co., Inc. Series C
5.375% due 03/15/10

    140      141

American Honda Finance Corp. (Ê)(Þ)
0.325% due 02/09/10

    1,600      1,600

AT&T, Inc.(Ê)
0.378% due 02/05/10

    200      200

Calyon
0.100% due 02/22/10

    16,410      16,408

Capmark Financial Group, Inc.
3.114% due 05/10/10

    2,870      832

Comerica Bank (Ê)
Series BKNT
0.328% due 05/10/10

    500      499

Credit Agricole SA(Ê)(Þ)
0.304% due 05/28/10

    2,700      2,700

Developers Diversified Realty Corp.

        

5.000% due 05/03/10

    1,410      1,411

4.625% due 08/01/10

    2,726      2,714

Discover Financial Services (Ê)
Series WI
0.784% due 06/11/10

    7,155      7,104

Federal Home Loan Bank Discount Notes (ç)(ž)
Zero coupon due 02/10/10

    20,385      20,385

Zero coupon due 02/12/10

    14,045      14,045

Zero coupon due 02/19/10

    42,965      42,964

Zero coupon due 02/24/10

    1,800      1,800

 

Russell Strategic Bond Fund   119

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Federal National Mortgage Association Discount Notes (ç)

        

Zero coupon due 02/01/10

    14,435      14,435

Zero coupon due 02/04/10

    11,000      11,000

Fifth Third Bank
Series BKNT
4.200% due 02/23/10

    2,755      2,760

Ford Motor Credit Co. LLC
7.875% due 06/15/10

    200      202

8.625% due 11/01/10

    100      103

Freddie Mac Discount Notes (ç)
Zero coupon due 02/23/10

    24,000      23,999

GMAC LLC
5.750% due 05/21/10

    400      555

Goldman Sachs Group, Inc. (The)
4.500% due 06/15/10

    1,650      1,674

HSBC Finance Corp. (Ê)
0.524% due 05/10/10

    1,300      1,300

International Lease Finance Corp.
5.000% due 04/15/10

    730      725

KeyBank NA (Ê)
Series BKNT
2.507% due 06/02/10

    4,100      4,120

Keycorp (Ê)
0.915% due 11/22/10

    7,060      9,195

Korea Development Bank/Republic of Korea (Ê)
0.391% due 04/06/10

    8,900      8,867

Kraft Foods, Inc. (Ê)
0.750% due 08/11/10

    10,000      9,995

Lehman Brothers Holdings, Inc. (Ø)(Æ)
2.951% due 05/25/10

    1,300      268

Lincoln National Corp. (Ê)
0.334% due 03/12/10

    3,095      3,092

Lloyds Bank PLC
Zero coupon due 02/23/10

    24,630      24,627

Mandalay Resort Group (Ñ)
9.375% due 02/15/10

    6,000      6,000

Marsh & McLennan Cos., Inc.
5.150% due 09/15/10

    650      665

Martin Marietta Materials, Inc. (Ê)
0.399% due 04/30/10

    4,295      4,280

Masco Corp. (Ê)
0.554% due 03/12/10

    5,687      5,678

Metropolitan Life Global Funding I (Ê)(Þ)
0.313% due 05/17/10

    5,100      5,098

Morgan Stanley (Ê)
2.350% due 05/14/10

    4,400      4,426

National City Bank (Ê)
Series BKNT
0.348% due 06/18/10

    2,830      2,826

National City Corp. (Ê)
0.424% due 06/16/10

    460      459

Nationwide Life Global Funding I (Ê)(Þ)
0.661% due 08/27/10

    545      545

Nippon Life Insurance Co. (Þ)
4.875% due 08/09/10

    3,250      3,295
     Principal
Amount ($)
or Shares		      Market
Value
$

Nisource Finance Corp.
7.875% due 11/15/10

    1,855      1,946

Nuveen Investments, Inc.
5.000% due 09/15/10

    6,550      6,517

Power Contract Financing LLC (Þ)
6.256% due 02/01/10

    297      297

Protective Life Secured Trusts (Ê)
0.391% due 11/09/10

    4,600      4,585

Rabobank USA Financial Corp.
Zero coupon due 02/04/10

    27,425      27,425

Reckson Operating Partnership, LP
5.150% due 01/15/11

    592      591

Russell U.S. Cash Management Fund (£)

    535,186,312      535,186

SLM Corp.
0.409% due 07/26/10 (Ê)

    1,250      1,229

Series MTNA
4.500% due 07/26/10

    2,160      2,171

Small Business Administration Series 2000-P10 Class 1
7.449% due 08/10/10

    46      47

Sprint Capital Corp. (Ñ)
7.625% due 01/30/11

    2,795      2,833

Sprint Nextel Corp. (Ê)
0.651% due 06/28/10

    3,775      3,728

United States Treasury Bills (ç)(ž)
0.020% due 02/11/10

    29,800      29,800

0.023% due 02/11/10

    3,400      3,400

0.046% due 02/18/10

    2,000      2,000

0.061% due 03/04/10

    28,393      28,392

0.030% due 03/11/10

    300      300

0.041% due 03/18/10

    12,250      12,249

0.046% due 03/18/10

    360      360

0.055% due 03/25/10

    20      20

0.070% due 03/25/10

    280      280

0.196% due 04/01/10

    67      67

0.198% due 04/01/10

    328      328

0.060% due 05/13/10

    55      55

0.137% due 07/15/10

    3,500      3,498

United States Treasury Inflation Indexed Bonds
0.875% due 04/15/10

    4,568      4,584
         

Total Short-Term Investments

(cost $936,726)

         934,880
         
Repurchase Agreements - 4.3%     

Agreement with Bank of America Corp. and State Street Bank and Co. (Tri-Party) of $161,700 dated January 29, 2010, at 0.110% to be repurchased at $161,701 on February 1, 2010 collateralized by: $164,423 par various United States Treasury Obligations, valued at $165,142

    161,700      161,700

 

120   Russell Strategic Bond Fund

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Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$		  
       

Agreement with Barclays Capital Inc. and State Street Bank and Co. (Tri-Party) of $161,700 dated January 29, 2010, at 0.110% to be repurchased at $161,701 on February 1, 2010 collateralized by: $135,520 par various United States Treasury Obligations, valued at $166,851

    161,700      161,700   

Agreement with Deutsche Bank Securities Inc. and State Street Bank and Co. (Tri-Party) of $10,600 dated January 29, 2010, at 0.100% to be repurchased at $10,600 on February 1, 2010 collateralized by: $10,996 par various United States Treasury Obligations, valued at $10,776

    10,600      10,600   
           

Total Repurchase Agreements

(cost $334,000)

         334,000   
           
Other Securities - 2.8%        

Russell U.S. Cash Collateral Fund (×)

    126,881,387      126,881   

State Street Securities Lending Quality Trust (×)

    89,517,456      89,242   
           

Total Other Securities

(cost $216,398)

         216,123   
           

Total Investments - 108.7%

(identified cost $8,647,704)

         8,386,887   
Other Assets and Liabilities, Net - (8.7%)         (672,078 ) 
           
Net Assets - 100.0%         7,714,809   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

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Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number
of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                 
Long Positions                    

Euribor Futures (Germany)

    56      EUR   13,904      03/10      198

Euro-Bobl Futures (Germany)

    1,508      EUR   180,084      03/10      1,669

Eurodollar Futures (CME)

    1,394      USD   347,490      03/10      2,152

Eurodollar Futures (CME)

    1,411      USD   351,322      06/10      1,346

Eurodollar Futures (CME)

    135      USD   33,532      09/10      114

Eurodollar Futures (CME)

    396      USD   98,020      12/10      809

Eurodollar Futures (CME)

    106      USD   23,136      03/11      23

Eurodollar Futures (CME)

    106      USD   26,036      06/11      20

Eurodollar Futures (CME)

    106      USD   25,943      09/11      17

Eurodollar Futures (CME)

    106      USD   25,854      12/11      16

Three Month Short Sterling Interest Rate Futures (UK)

    16      GBP   1,987      03/10      43

Three Month Short Sterling Interest Rate Futures (UK)

    33      GBP   4,092      06/10      85

United States Treasury Bonds

    1,755      USD   208,517      03/10      (367)

United States Treasury 2 Year Notes

    1,774      USD   386,649      03/10      1,074

United States Treasury 5 Year Notes

    3,748      USD   436,495      03/10      1,751

United States Treasury 10 Year Notes

    4,974      USD   587,710      03/10      2,557
Short Positions                    

Euro-Bund Futures (Germany)

    20      EUR   3      02/10      10

Euro-Bobl Futures (Germany)

    38      EUR   4,456      03/10      (33)

Eurodollar Futures (CME)

    3      USD   743      12/10      (1)

Long Gilt Bond (UK)

    159      GBP   18,390      03/10      (43)

United States Treasury Bonds

    136      USD   16,159      03/10      275

United States Treasury 2 Year Notes

    906      USD   197,466      03/10      (222)

United States Treasury 5 Year Notes

    78      USD   9,084      03/10      14

United States Treasury 10 Year Notes

    43      USD   5,081      03/10      (38)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                  11,469
                     

 

See accompanying notes which are an integral part of the Quarterly Report.

 

122   Russell Strategic Bond Fund

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Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Options Written

(Number of Contracts)

        Notional
Amount		     

Market
Value

$

  
         
Swaptions          
(Fund Pays/Fund Receives)          
USD Three Month LIBOR/USD
2.500%		          
Feb 2010 0.00 Call (1)      2,800      (2 ) 
USD Three Month LIBOR/USD
2.800%		          
Feb 2010 0.00 Call (1)      13,000      (1 ) 
USD Three Month LIBOR/USD
3.250%		          
Feb 2010 0.00 Call (3)      35,300      (2 ) 
USD Three Month LIBOR/USD
2.750%		          
Apr 2010 0.00 Call (3)      24,200      (26 ) 
USD Three Month LIBOR/USD
3.250%		          
Apr 2010 0.00 Call (6)      54,400      (142 ) 
USD Three Month LIBOR/USD
3.500%		          
Apr 2010 0.00 Call (1)      4,000      (22 ) 
USD Three Month LIBOR/USD
3.500%		          
Jun 2010 0.00 Call (1)      4,300      (37 ) 
USD 3.500%/USD Three Month LIBOR       
Feb 2010 0.00 Put (1)      27,000      (38 ) 
USD 4.000%/USD Three Month LIBOR       
Feb 2010 0.00 Put (4)      40,400      (78 ) 
USD 4.000%/USD Three Month LIBOR       
Apr 2010 0.00 Put (2)      22,900      (60 ) 

Options Written

(Number of Contracts)

        Notional
Amount		      Market
Value
$		  
USD 4.250%/USD Three Month LIBOR       
Apr 2010 0.00 Put (10)      128,200      (847 ) 
USD 5.000%/USD Three Month LIBOR       
Apr 2010 0.00 Put (2)      18,200      (13 ) 
USD 4.500%/USD Three Month LIBOR       
Jun 2010 0.00 Put (1)      4,300      (36 ) 
USD 10.000%/USD Three Month LIBOR       
Jul 2010 0.00 Put (1)      9,000      (32 ) 
USD 5.500%/USD Three Month LIBOR       
Aug 2010 0.00 Put (1)      20,000      (15 ) 
USD 6.000%/USD Three Month LIBOR       
Aug 2010 0.00 Put (2)      26,000      (35 ) 
United States Treasury Notes          

10 Year Futures

          

Feb 2010 117.90 Call (6)

    USD   6      (4 ) 

Feb 2010 119.00 Call (72)

    USD   72      (19 ) 

Feb 2010 120.00 Call (169)

    USD   169      (11 ) 

Feb 2010 121.00 Call (54)

    USD   54      (1 ) 

Apr 2010 124.00 Call (22)

    USD   22      (10 ) 

Feb 2010 114.00 Put (113)

    USD   113      (2 ) 

Feb 2010 115.00 Put (85)

    USD   85      (3 ) 

Feb 2010 116.00 Put (10)

    USD   10      (1 ) 

Apr 2010 114.00 Put (22)

    USD   22      (12 ) 
             

Total Liability for Options Written
(premiums received $4,713)

           (1,449 ) 
             

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Strategic Bond Fund   123

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Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts                                                  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                               

Bank of America

      USD      6,748      JPY      614,980      03/17/10      66   

Bank of America

      AUD      4,146      JPY      342,170      03/17/10      70   

Bank of America

      AUD      7,536      NZD      9,570      03/17/10      30   

Bank of America

      CAD      21,502      EUR      14,450      03/17/10      (38 ) 

Bank of America

      EUR      4,170      GBP      3,644      03/17/10      20   

Bank of America

      EUR      5,578      NZD      10,938      03/17/10      (40 ) 

Barclays Bank PLC

      USD      1,525      BRL      2,724      02/02/10      (80 ) 

Barclays Bank PLC

      USD      1,946      GBP      1,205      02/10/10      (20 ) 

Barclays Bank PLC

      USD      6,316      JPY      565,058      03/17/10      (55 ) 

Barclays Bank PLC

      USD      541      MYR      1,860      02/12/10      4   

Barclays Bank PLC

      USD      553      MYR      1,860      04/30/10      (10 ) 

Barclays Bank PLC

      USD      9,728      NOK      56,099      03/17/10      (276 ) 

Barclays Bank PLC

      BRL      2,140      USD      1,225      02/02/10      90   

Barclays Bank PLC

      CAD      19,398      EUR      12,606      03/17/10      (332 ) 

Barclays Bank PLC

      CAD      1,365      USD      1,304      02/22/10      27   

Barclays Bank PLC

      CAD      2,044      USD      1,978      03/17/10      66   

Barclays Bank PLC

      EUR      8,956      AUD      14,330      03/17/10      102   

Barclays Bank PLC

      EUR      3,728      NZD      7,546      03/17/10      56   

Barclays Bank PLC

      EUR      1,470      USD      2,073      02/10/10      35   

Barclays Bank PLC

      GBP      4,943      USD      7,899      02/10/10      (2 ) 

Barclays Bank PLC

      JPY      81,606      USD      895      02/10/10      (9 ) 

Barclays Bank PLC

      MYR      1,860      USD      554      02/12/10      9   

Barclays Bank PLC

      NOK      19,900      USD      3,474      03/17/10      121   

Citibank

      USD      6,798      CHF      7,067      03/17/10      (189 ) 

Citibank

      USD      5,755      EUR      3,910      03/17/10      (335 ) 

Citibank

      USD      6,056      GBP      3,782      03/25/10      (13 ) 

Citibank

      USD      559      KRW      659,913      02/11/10      9   

Citibank

      USD      553      TWD      17,402      04/29/10      (4 ) 

Citibank

      AUD      6,322      USD      5,783      03/17/10      216   

Citibank

      CAD      6,966      EUR      4,652      03/17/10      (65 ) 

Citibank

      CAD      3,512      GBP      2,078      03/17/10      18   

Citibank

      CAD      512      USD      482      02/22/10      4   

Citibank

      CAD      1,591      USD      1,503      02/22/10      16   

Citibank

      CHF      18,620      EUR      12,534      03/17/10      (18 ) 

Citibank

      EUR      9,508      AUD      15,016      03/17/10      21   

Citibank

      EUR      4,812      CAD      7,200      03/17/10      32   

Citibank

      EUR      9,198      CAD      14,240      03/17/10      282   

Citibank

      EUR      4,826      CHF      7,074      03/17/10      (37 ) 

Citibank

      EUR      11,852      NOK      97,936      03/17/10      35   

Citibank

      EUR      5,762      SEK      58,722      03/17/10      (20 ) 

Citibank

      EUR      12,613      USD      18,046      03/17/10      560   

Citibank

      GBP      6,290      EUR      7,272      03/17/10      15   

Citibank

      JPY      828,140      CAD      9,602      03/17/10      (98 ) 

Citibank

      JPY      331,712      USD      3,619      03/17/10      (56 ) 

Citibank

      JPY      404,973      USD      4,515      03/17/10      28   

Citibank

      JPY      423,693      USD      4,571      03/17/10      (124 ) 

Credit Suisse First Boston

      USD      16,853      CAD      17,716      03/17/10      (285 ) 

Credit Suisse First Boston

      AUD      2,189      USD      2,004      03/17/10      76   

Credit Suisse First Boston

      CHF      5,882      USD      5,693      03/17/10      192   

Credit Suisse First Boston

      EUR      2,484      AUD      4,014      03/17/10      46   

Credit Suisse First Boston

      EUR      2,403      USD      3,398      03/17/10      67   

Credit Suisse First Boston

      EUR      4,871      USD      6,769      03/17/10      16   

Credit Suisse First Boston

      EUR      6,158      USD      9,035      03/17/10      498   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

124   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts                                                  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                               

Credit Suisse First Boston

      EUR      8,156      USD      12,003      03/17/10      696   

Credit Suisse First Boston

      GBP      8,432      EUR      9,616      03/17/10      (72 ) 

Credit Suisse First Boston

      JPY      559,508      CHF      6,520      03/17/10      (51 ) 

Credit Suisse First Boston

      JPY      303,809      USD      3,307      03/17/10      (59 ) 

Credit Suisse First Boston

      SEK      20,815      USD      2,925      03/17/10      108   

Deutsche Bank

      USD      1,640      CAD      1,693      02/22/10      (57 ) 
Deutsche Bank      USD      6,767      EUR      4,642      03/17/10      (332 ) 
Deutsche Bank      USD      6,363      JPY      571,531      03/17/10      (30 ) 
Deutsche Bank      USD      1,295      KRW      1,538,595      02/11/10      29   
Deutsche Bank      AUD      15,096      GBP      8,358      03/17/10      32   
Deutsche Bank      CAD      14,354      EUR      9,620      03/17/10      (43 ) 
Deutsche Bank      GBP      2,510      USD      4,089      02/26/10      77   
Deutsche Bank      JPY      417,605      USD      4,519      03/17/10      (108 ) 
Deutsche Bank      NZD      2,748      USD      2,020      03/17/10      98   
Deutsche Bank      NZD      6,981      USD      5,096      03/17/10      211   
Goldman Sachs      USD      3,407      BRL      6,388      002/2/10      (18 ) 
Goldman Sachs      USD      3,648      BRL      6,388      04/05/10      (298 ) 
Goldman Sachs      BRL      6,388      USD      3,693      02/02/10      304   
Goldman Sachs      EUR      7,592      USD      11,028      03/17/10      503   
HSBC      USD      178      BRL      309      02/02/10      (14 ) 
HSBC      USD      1,591      EUR      1,097      03/17/10      (70 ) 
HSBC      USD      6,797      EUR      4,803      03/17/10      (138 ) 
HSBC      USD      20,719      EUR      14,460      03/17/10      (673 ) 
HSBC      USD      1,462      GBP      905      02/10/10      (16 ) 
HSBC      BRL      309      USD      165      02/02/10      1   
HSBC      EUR      23      USD      23      02/01/10      (8 ) 
HSBC      EUR      3,089      USD      4,484      02/16/10      202   
HSBC      EUR      2,410      USD      3,385      03/17/10      44   
HSBC      GBP      8,394      EUR      9,638      03/17/10      (25 ) 
JP Morgan      USD      1,321      AUD      1,430      02/10/10      (57 ) 
JP Morgan      USD      5,953      AUD      6,535      02/10/10      (176 ) 
JP Morgan      USD      870      BRL      1,555      02/02/10      (45 ) 
JP Morgan      USD      3,215      BRL      5,768      002/2/10      (155 ) 
JP Morgan      USD      2,020      CAD      2,082      02/10/10      (73 ) 
JP Morgan      USD      2,650      CAD      2,750      02/10/10      (78 ) 
JP Morgan      USD      1,439      EUR      1,000      02/10/10      (53 ) 
JP Morgan      USD      198      EUR      140      04/26/10      (4 ) 
JP Morgan      USD      96      GBP      56      02/01/10      (7 ) 
JP Morgan      USD      1,630      GBP      1,000      02/10/10      (31 ) 
JP Morgan      USD      1,720      GBP      1,065      02/10/10      (18 ) 
JP Morgan      USD      2,314      GBP      1,430      02/10/10      (29 ) 
JP Morgan      USD      250      KRW      280,200      02/11/10      (9 ) 
JP Morgan      USD      3,464      NOK      19,751      02/10/10      (131 ) 
JP Morgan      USD      554      SGD      768      02/11/10      (8 ) 
JP Morgan      BRL      2,389      USD      1,365      02/02/10      97   
JP Morgan      BRL      5,768      USD      3,077      02/02/10      17   
JP Morgan      EUR      9,690      NZD      19,128      03/17/10      (26 ) 
JP Morgan      EUR      32      USD      40      02/01/10      (5 ) 
JP Morgan      EUR      1,925      USD      2,718      02/10/10      49   
JP Morgan      EUR      2,292      USD      3,226      03/11/10      50   
JP Morgan      EUR      5,573      USD      7,854      03/17/10      128   
JP Morgan      GBP      1,000      USD      1,636      02/10/10      38   
JP Morgan      GBP      1,210      USD      1,959      02/10/10      25   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Strategic Bond Fund   125

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts                                                  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                               
JP Morgan      GBP      1,430      USD      2,326      02/10/10      41   
JP Morgan      GBP      840      EUR      961      03/17/10      13   
JP Morgan      GBP      840      EUR      961      03/17/10      (22 ) 
JP Morgan      JPY      611,936      NZD      9,532      03/17/10      (56 ) 
JP Morgan      NZD      19,054      EUR      9,606      03/17/10      (7 ) 
Morgan Stanley      USD      9,802      AUD      10,848      03/17/10      (249 ) 
Morgan Stanley      USD      1,476      JPY      134,862      03/17/10      18   
Morgan Stanley      USD      1,479      JPY      133,851      03/17/10      5   
Morgan Stanley      USD      250      MXN      3,215      04/22/10      (6 ) 
Morgan Stanley      USD      3,376      NZD      4,785      03/17/10      (28 ) 
Morgan Stanley      USD      250      PHP      11,525      04/16/10      (4 ) 
Morgan Stanley      USD      250      SGD      347      02/11/10      (3 ) 
Morgan Stanley      AUD      7,050      USD      6,418      03/17/10      210   
Morgan Stanley      BRL      311      USD      166      02/02/10      1   
Morgan Stanley      JPY      612,970      CAD      7,182      03/17/10      (37 ) 
Morgan Stanley      NZD      9,976      EUR      4,916      03/17/10      (82 ) 
Royal Bank of Canada      USD      179      BRL      311      02/02/10      (14 ) 
Royal Bank of Canada      USD      1,333      GBP      820      03/17/10      (23 ) 
Royal Bank of Canada      USD      2,907      GBP      1,826      03/17/10      10   
Royal Bank of Canada      BRL      1,400      USD      791      04/12/10      57   
Royal Bank of Canada      CAD      14,298      EUR      9,158      03/17/10      (338 ) 
Royal Bank of Canada      CAD      7,759      USD      7,496      03/17/10      240   
Royal Bank of Canada      EUR      1,199      USD      1,719      03/17/10      57   
Royal Bank of Canada      EUR      2,698      CAD      4,032      03/17/10      15   
Royal Bank of Canada      EUR      14,630      CAD      21,866      03/17/10      84   
Royal Bank of Scotland      USD      774      AUD      847      02/26/10      (27 ) 
Royal Bank of Scotland      USD      1,135      CAD      1,173      02/10/10      (38 ) 
Royal Bank of Scotland      USD      1,273      EUR      900      02/10/10      (25 ) 
Royal Bank of Scotland      USD      1,630      GBP      1,010      02/01/10      (15 ) 
Royal Bank of Scotland      USD      16,543      NZD      22,925      03/17/10      (503 ) 
Royal Bank of Scotland      EUR      6,172      NZD      12,556      03/17/10      114   
Royal Bank of Scotland      EUR      5,326      USD      7,667      02/10/10      282   
Royal Bank of Scotland      EUR      1,660      USD      2,464      02/18/10      162   
Royal Bank of Scotland      EUR      4,404      USD      6,323      03/17/10      217   
Royal Bank of Scotland      GBP      13,896      EUR      15,320      03/17/10      (483 ) 
Royal Bank of Scotland      GBP      1,010      USD      1,640      02/01/10      26   
Royal Bank of Scotland      GBP      905      USD      1,465      02/10/10      18   
Royal Bank of Scotland      GBP      1,595      USD      2,550      02/10/10      —   
Royal Bank of Scotland      JPY      176,179      USD      1,900      02/10/10      (52 ) 
State Street Bank and Trust Company      AUD      10,970      EUR      6,976      03/17/10      5   
State Street Bank and Trust Company      AUD      14,732      EUR      9,322      03/17/10      (25 ) 
State Street Bank and Trust Company      EUR      3,724      CAD      5,738      03/17/10      102   
State Street Bank and Trust Company      EUR      6,340      NZD      12,468      03/17/10      (33 ) 
State Street Bank and Trust Company      EUR      4,794      SEK      48,834      03/17/10      (18 ) 
State Street Bank and Trust Company      EUR      6,216      SEK      64,822      03/17/10      78   
State Street Bank and Trust Company      NZD      12,876      EUR      6,318      03/17/10      (125 ) 
UBS      USD      3,386      CAD      3,610      03/17/10      (10 ) 
UBS      USD      2,377      CHF      2,454      03/17/10      (82 ) 
UBS      USD      1,393      CNY      9,499      03/29/10      (2 ) 
UBS      USD      1,412      EUR      1,010      02/01/10      (12 ) 
UBS      USD      1,795      EUR      1,235      02/10/10      (83 ) 
UBS      USD      1,841      GBP      1,140      02/10/10      (19 ) 
UBS      USD      6,738      GBP      4,167      03/17/10      (79 ) 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

126   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts                                                  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                               
UBS      USD      1,565      MXN      20,023      02/10/10      (35 ) 
UBS      AUD      10,296      EUR      6,302      03/17/10      (165 ) 
UBS      AUD      14,796      JPY      1,187,424      03/17/10      64   
UBS      CAD      2,244      USD      2,170      02/10/10      72   
UBS      CAD      1,589      USD      1,540      02/10/10      54   
UBS      CAD      881      USD      838      02/22/10      14   
UBS      CHF      9,482      EUR      6,330      03/17/10      (46 ) 
UBS      EUR      4,678      CAD      6,998      03/17/10      29   
UBS      EUR      6,168      CAD      9,514      03/17/10      173   
UBS      EUR      7,536      NZD      14,972      03/17/10      13   
UBS      EUR      6,298      SEK      64,176      03/17/10      (22 ) 
UBS      EUR      1,010      USD      1,414      02/01/10      14   
UBS      EUR      885      USD      1,265      02/10/10      38   
UBS      EUR      1,335      USD      1,880      02/10/10      29   
UBS      EUR      1,355      USD      1,883      02/10/10      5   
UBS      EUR      2,549      USD      3,642      03/17/10      108   
UBS      EUR      4,839      USD      6,769      03/17/10      60   
UBS      EUR      6,192      USD      9,043      03/17/10      459   
UBS      GBP      2,345      USD      3,801      02/10/10      53   
UBS      GBP      2,267      USD      3,616      03/17/10      (7 ) 
UBS      GBP      3,974      USD      6,453      03/25/10      102   
UBS      JPY      251,770      EUR      1,938      03/17/10      (52 ) 
UBS      JPY      136,602      USD      1,485      02/10/10      (28 ) 
UBS      NOK      57,138      EUR      6,974      03/17/10      20   
UBS      NZD      8,772      EUR      4,296      03/17/10      (90 ) 
UBS      NZD      23,958      EUR      12,164      03/17/10      50   
Westpac Banking Corporation      USD      16,660      AUD      18,333      03/17/10      (516 ) 
Westpac Banking Corporation      USD      6,771      CAD      7,161      03/17/10      (74 ) 
Westpac Banking Corporation      USD      6,768      EUR      4,647      03/17/10      (326 ) 
Westpac Banking Corporation      USD      4,388      JPY      408,642      03/17/10      139   
Westpac Banking Corporation      AUD      11,160      EUR      7,150      03/17/10      42   
Westpac Banking Corporation      AUD      5,693      USD      5,051      03/17/10      38   
Westpac Banking Corporation      EUR      9,380      GBP      8,278      03/17/10      111   
Westpac Banking Corporation      EUR      2,405      USD      3,365      03/17/10      31   
Westpac Banking Corporation      EUR      6,185      USD      9,007      03/17/10      431   
Westpac Banking Corporation      EUR      9,426      USD      13,532      03/17/10      462   
Westpac Banking Corporation      JPY      598,257      USD      6,782      03/17/10      151   
Westpac Banking Corporation      JPY      536,153      USD      5,779      03/17/10      (163 ) 
                                 
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts                               1,006   
                                 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Strategic Bond Fund   127

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Interest Rate Swap Contracts                                

Counterparty

    Notional
Amount 		   Fund Receives   

Fund Pays

    Termination
Date		    Market
Value
$		  
                

Bank of America

    USD   21,000    3.000%    Three Month LIBOR    12/16/10    475   

Bank of America

    CAD   17,930    Canadian Dealer Offer Rate    1.958%    07/20/12    (11 ) 

Bank of America

    USD   16,000    Three Month LIBOR    3.250%    06/16/17    249   

Bank of America

    USD   56,800    Three Month LIBOR    3.250%    06/16/17    884   

Bank of America

    CAD   4,220    3.920%    Canadian Dealer Offer Rate    07/20/20    28   

Bank of America

    USD   13,000    Three Month LIBOR    4.250%    06/16/30    320   

Barclays Bank PLC

    BRL   3,900    Brazil Interbank Deposit Rate    12.540%    01/02/12    71   

Barclays Bank PLC

    USD   1,018    Three Month LIBOR    4.524%    11/15/21    (35 ) 

Barclays Bank PLC

    USD   1,032    Three Month LIBOR    4.420%    11/15/21    (22 ) 

Barclays Bank PLC

    USD   3,338    Three Month LIBOR    4.540%    11/15/21    (118 ) 

Barclays Bank PLC

    USD   6,658    Three Month LIBOR    4.633%    11/15/21    (315 ) 

BNP Paribas

    EUR   900    2.090%    Consumer Price Index (France)    10/15/10    43   

Citibank

    AUD   26,400    4.500%    Three Month BBSW    06/15/11    (110 ) 

Citibank

    USD   40,000    Three Month LIBOR    3.250%    06/16/17    622   

Credit Suisse First Boston

    EUR   48,200    3.000%    Six Month EURIBOR    06/16/15    557   

Credit Suisse First Boston

    USD   24,460    Three Month LIBOR    4.250%    06/16/40    1,024   

Deutsche Bank

    KRW   5,951,000    2.820%    Korean Interbank Offer Rate    01/28/11    (28 ) 

Deutsche Bank

    KRW   3,100,000    3.870%    Korean Interbank Offer Rate    06/12/11    9   

Deutsche Bank

    AUD   500    4.500%    Three Month BBSW    06/15/11    (2 ) 

Deutsche Bank

    KRW   15,700,000    3.693%    Korean Interbank Offer Rate    06/26/11    7   

Deutsche Bank

    KRW   6,577,024    3.620%    Korean Interbank Offer Rate    07/06/11    (4 ) 

Deutsche Bank

    KRW   10,988,604    3.626%    Korean Interbank Offer Rate    07/07/11    (7 ) 

Deutsche Bank

    BRL   15,000    11.760%    Brazil Interbank Deposit Rate    01/02/12    31   

Deutsche Bank

    BRL   25,000    11.760%    Brazil Interbank Deposit Rate    01/02/12    51   

Deutsche Bank

    BRL   30,000    11.795%    Brazil Interbank Deposit Rate    01/02/12    59   

Deutsche Bank

    BRL   42,200    11.735%    Brazil Interbank Deposit Rate    01/02/12    81   

Deutsche Bank

    EUR   31,600    3.000%    Six Month EURIBOR    06/16/15    365   

Deutsche Bank

    USD   45,300    Three Month LIBOR    3.250%    06/16/17    705   

Deutsche Bank

    USD   48,500    Three Month LIBOR    3.250%    06/16/17    755   

Deutsche Bank

    USD   49,500    Three Month LIBOR    3.250%    06/16/17    770   

Deutsche Bank

    USD   51,000    Three Month LIBOR    3.250%    06/16/17    794   

Deutsche Bank

    USD   72,800    4.568%    Three Month LIBOR    09/04/17    296   

Deutsche Bank

    EUR   23,830    3.750%    Six Month LIBOR    06/16/20    537   

Deutsche Bank

    USD   42,700    Three Month LIBOR    4.710%    09/04/22    437   

Deutsche Bank

    EUR   21,000    4.000%    Six Month EURIBOR    06/16/40    656   

Goldman Sachs

    USD   11,700    Six Month LIBOR    Six Month LIBOR    05/25/10    107   

Goldman Sachs

    EUR   16,000    3.000%    Six Month EURIBOR    06/16/15    185   

JP Morgan

    KRW   5,785,000    2.830%    Korean Interbank Offer Rate    01/28/11    (27 ) 

JP Morgan

    KRW   5,100,000    3.900%    Korean Interbank Offer Rate    06/15/11    15   

JP Morgan

    KRW   15,360,000    3.720%    Korean Interbank Offer Rate    06/22/11    13   

JP Morgan

    KRW   5,226,345    3.660%    Korean Interbank Offer Rate    07/08/11    (1 ) 

Merrill Lynch

    BRL   300    14.765%    Brazil Interbank Deposit Rate    01/02/12    21   

Morgan Stanley

    USD   54,600    3.000%    Three Month LIBOR    12/16/10    1,235   

Royal Bank of Canada

    CAD   29,780    Canadian Dealer Offer Rate    2.005%    07/15/12    (52 ) 

Royal Bank of Canada

    CAD   22,380    Canadian Dealer Offer Rate    1.909%    07/26/12    14   

Royal Bank of Canada

    CAD   22,300    Canadian Dealer Offer Rate    2.014%    07/29/12    —   

Royal Bank of Canada

    CAD   6,950    3.960%    Canadian Dealer Offer Rate    07/15/20    73   

Royal Bank of Canada

    CAD   5,260    3.840%    Canadian Dealer Offer Rate    07/26/20    (2 ) 

Royal Bank of Scotland

    USD   325,500    3.000%    Three Month LIBOR    12/16/10    7,365   

Royal Bank of Scotland

    USD   900    4.000%    Three Month LIBOR    12/16/14    58   

UBS

    AUD   600    4.500%    Three Month LIBOR    06/15/11    (3 ) 

UBS

    BRL   1,400    10.575%    Brazil Interbank Deposit Rate    01/02/12    (33 ) 

UBS

    BRL   3,800    12.540%    Brazil Interbank Deposit Rate    01/02/12    69   

UBS

    AUD   1,900    6.000%    Six Month LIBOR    09/15/12    23   
                    

Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $13,581

    18,234   
                    

 

See accompanying notes which are an integral part of the Quarterly Report.

 

128   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Credit Default Swap Contracts  
Corporate Issues  

Reference
Entity

   

Counterparty

    Implied
Credit
Spread 		   Notional
Amount		    Fund (Pays)/
Receives
Fixed Rate		      Termination
Date		    Market
Value
$		  
                    

American International Group

    Deutsche Bank    5.530%    USD    10,300    1.630%       06/20/13    (1,188 ) 

Arrow Electronics, Inc.

    Citigroupglobal Markets, Inc.    0.867%    USD    1,730    (0.820% )     03/20/14    3   

Berkshire Hathaway

    Deutsche Bank    0.980%    USD    17,100    (1.000% )     03/20/13    10   

Centex Corporation

    Deutsche Bank    1.147%    USD    4,275    (4.400% )     12/20/13    (517 ) 

Citibank

    BNP Paribas    1.538%    USD    100    (1.000% )     03/20/11    (1 ) 

Citibank

    Credit Suisse First Boston    1.538%    USD    300    (1.000% )     03/20/11    (2 ) 

Citibank

    Goldman Sachs    1.538%    USD    200    (1.000% )     03/20/11    (1 ) 

Citibank

    UBS    1.538%    USD    700    (1.000% )     03/20/11    (4 ) 

Darden Rest, Inc.

    Citigroupglobal Markets, Inc.    0.887%    USD    275    (2.730% )     03/20/14    (20 ) 

Darden Restaurants, Inc.

    Deutsche Bank    0.887%    USD    4,775    (2.250% )     03/20/14    (258 ) 

Dr Horton Inc.

    Citibank    2.520%    USD    1,200    (1.000% )     09/20/16    101   

Dr Horton Inc.

    Deutsche Bank    2.520%    USD    945    (1.000% )     09/20/16    80   

Dr Horton Inc.

    Goldman Sachs    2.520%    USD    945    (1.000% )     09/20/16    80   

Federative Republic of Brazil

    UBS    1.183%    USD    4,000    1.190%       08/20/13    1   

Ford Motor Credit Co.

    Barclays Bank PLC    3.760%    USD    700    5.650%       09/20/12    32   

Ford Motor Credit Co.

    Goldman Sachs    3.760%    USD    400    3.850%       09/20/12    1   

Gaz Capital for Gazprom

    Barclays Bank PLC    2.406%    USD    1,100    1.600%       12/20/12    (24 ) 

Gaz Capital for Gazprom

    Morgan Stanely    2.430%    USD    1,500    2.480%       02/20/13    2   

Gaz Capital for Gazprom

    UBS    2.513%    USD    4,000    2.260%       08/20/13    (34 ) 

GE Capital Corporation

    Citibank    0.500%    USD    600    1.100%       03/20/10    —   

GE Capital Corporation

    Citibank    0.500%    USD    200    1.150%       03/20/10    —   

GE Capital Corporation

    Citibank    0.500%    USD    700    1.050%       03/20/10    1   

GE Capital Corporation

    Citibank    0.500%    USD    5,500    5.000%       06/20/10    97   

GE Capital Corporation

    Citibank    0.500%    USD    400    5.000%       06/20/10    7   

GE Capital Corporation

    Citibank    1.990%    USD    600    4.800%       12/20/13    61   

GE Capital Corporation

    Credit Suisse First Boston    1.500%    USD    2,535    6.550%       12/20/10    114   

Hewelett-Packard Co.

    Citigroupglobal Markets, Inc.    0.351%    USD    1,730    (0.720% )     03/20/14    (26 ) 

Home Depot

    Citigroupglobal Markets, Inc.    0.677%    USD    4,695    (2.670% )     03/20/14    (372 ) 

KB Home

    Citibank    3.438%    USD    1,200    (1.000% )     09/20/16    154   

Kohl’s

    Deutsche Bank    0.744%    USD    1,505    (1.000% )     12/20/14    (18 ) 

Kohl’s

    JP Morgan    0.744%    USD    1,500    (1.000% )     12/20/14    (18 ) 

Lowes

    Citigroupglobal Markets, Inc.    0.563%    USD    4,900    (1.200% )     03/20/14    (125 ) 

Metlife, Inc.

    Deutsche Bank    1.720%    USD    8,500    2.050%       03/20/13    84   

Metlife, Inc.

    UBS    1.720%    USD    8,500    2.050%       03/20/13    84   

Mexico Government International Bond

    JP Morgan    1.525%    USD    2,600    0.920%       03/20/16    (86 ) 

Nordstrom, Inc.

    Deutsche Bank    0.801%    USD    2,475    (2.100% )     03/20/14    (127 ) 

Prudential

    Deutsche Bank    1.400%    USD    8,500    2.300%       03/20/13    231   

Prudential

    UBS    1.400%    USD    8,500    2.300%       03/20/13    231   

Pulte Homes, Inc.

    Citibank    2.706%    USD    9,000    (1.000% )     09/20/16    842   

Republic of Indonesia

    UBS    1.077%    USD    300    1.300%       09/20/10    -   

Republic of Panama

    JP Morgan    1.613%    USD    300    1.250%       01/20/17    (7 ) 

SLM Corporation

    Deutsche Bank    5.007%    USD    10,000    5.000%       12/20/13    (2 ) 

Target Corp

    Credit Suisse First Boston    0.564%    USD    1,500    (1.000% )     12/20/14    (30 ) 

Target Corp

    Deutsche Bank    0.564%    USD    1,505    (1.000% )     12/20/14    (30 ) 

Target Corp.

    Credit Suisse First Boston    1.767%    USD    3,065    (1.000% )     09/20/16    134   

United Kingdom Gilt

    Deutsche Bank    0.804%    USD    1,900    (1.000% )     12/20/14    17   

United Kingdom Gilt

    JP Morgan    0.804%    USD    100    (1.000% )     12/20/14    1   

United Kingdom Gilt

    Morgan Stanley    0.804%    USD    100    (1.000% )     12/20/14    1   

Wachovia Corporation

    Royal Bank of Scotland    0.885%    USD    300    3.020%       03/20/13    20   
                        

Total Market Value of Open Corporate Issue Credit Default Swap Contracts Premiums Paid (Received) - ($1,002)

    (501 ) 
                        

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Strategic Bond Fund   129

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Credit Indices                                        

Reference
Entity

   

Counter
Party

    Notional
Amount		    Fund (Pays)/
Receives
Fixed Rate		      Termination
Date		    Market
Value
$		  
                 

ABX - HE Index for Sub-Prime Home Equity Sector

    Barclays Bank PLC    USD    16,900    0.760%       01/25/38    (10,443 ) 

ABX - HE Index for Sub-Prime Home Equity Sector

    JP Morgan    USD    16,500    0.090%       08/25/37    (10,740 ) 

ABX - HE Index for Sub-Prime Home Equity Sector

    JP Morgan    USD    7,514    0.170%       05/25/46    (6,641 ) 

CMBX AJ Index

    Bank of America    USD    1,230    (0.840% )     10/12/52    312   

CMBX AJ Index

    Bank of America    USD    5,455    (0.840% )     10/12/52    1,385   

CMBX AJ Index

    Barclays Bank PLC    USD    6,500    (0.840% )     10/12/52    1,651   

CMBX AJ Index

    Barclays Bank PLC    USD    6,500    (0.840% )     10/12/52    1,651   

CMBX AJ Index

    Credit Suisse First Boston    USD    3,690    (0.840% )     10/12/52    937   

CMBX AJ Index

    Credit Suisse First Boston    USD    12,595    (0.840% )     10/12/52    3,199   

Dow Jones CDX Index

    Bank of America    USD    16,000    (1.000% )     12/20/14    (22 ) 

Dow Jones CDX Index

    Chase Securities Inc.    USD    2,000    1.120%       12/20/12    51   

Dow Jones CDX Index

    Citibank    USD    4,911    0.355%       06/20/12    (18 ) 

Dow Jones CDX Index

    Citibank    USD    4,815    0.360%       06/20/12    (17 ) 

Dow Jones CDX Index

    Citibank    USD    1,059    0.401%       06/20/12    (3 ) 

Dow Jones CDX Index

    Deutsche Bank    USD    9,163    0.708%       12/20/12    157   

Dow Jones CDX Index

    Deutsche Bank    USD    1,350    0.530%       06/20/13    19   

Dow Jones CDX Index

    Deutsche Bank    USD    20,500    (1.000% )     12/20/14    (28 ) 

Dow Jones CDX Index

    Deutsche Bank    USD    17,800    (1.000% )     12/20/14    (25 ) 

Dow Jones CDX Index

    Deutsche Bank    USD    25,300    (1.000% )     12/20/14    (35 ) 

Dow Jones CDX Index

    Deutsche Bank    USD    1,000    5.000%       12/20/14    100   

Dow Jones CDX Index

    Goldman Sachs    USD    7,600    1.120%       12/20/12    192   

Dow Jones CDX Index

    Goldman Sachs    USD    1,736    0.463%       06/20/13    21   

Dow Jones CDX Index

    Goldman Sachs    USD    579    0.548%       12/20/17    8   

Dow Jones CDX Index

    JP Morgan    USD    1,447    0.553%       12/20/17    19   

Dow Jones CDX Index

    Merrill Lynch    USD    19,254    1.580%       12/20/12    390   

Dow Jones CDX Index

    Merrill Lynch    USD    19,254    1.640%       12/20/12    423   

Total Market Value of Open Credit Index Credit Default Swap Contracts Premiums Paid (Received) - ($12,899)

    (17,457 ) 
                     

Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($13,901)

    (17,958 ) 
                     

 

See accompanying notes which are an integral part of the Quarterly Report.

 

130   Russell Strategic Bond Fund

Table of Contents

Russell Investment Company

Russell Strategic Bond Fund

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

     Market Value  
Portfolio Summary    Level 1     Level 2     Level 3    Total  

Long-Term Investments

          

Asset-Backed Securities

    $ —      $ 728,825      $ —    $ 728,825   

Corporate Bonds and Notes

      —        1,534,073        —      1,534,073   

International Debt

      —        669,345        11,838      681,183   

Loan Agreements

      —        44,430        3,910      48,340   

Mortgage-Backed Securities

      —        3,145,643        57      3,145,700   

Municipal Bonds

      —        74,777        —      74,777   

Non-US Bonds

      —        66,065        —      66,065   

United States Government Agencies

      —        132,369        —      132,369   

United States Government Treasuries

      —        465,628        —      465,628   

Common Stocks

      491        —        —      491   

Investment in Other Funds

      —        —        16,455      16,455   

Preferred Stocks

      3,655        —        4,244      7,899   

Warrants and Rights

      79        —        —      79   

Short-Term Investments

      —        934,880        —      934,880   

Repurchase Agreements

      —        334,000        —      334,000   

Other Securities

      126,881        89,242        —      216,123   
                               

Total Investments

      131,106        8,219,277        36,504      8,386,887   
                               

Other Financial Instruments

          

Futures Contracts

      11,469        —        —      11,469   

Options Written

      (40 )      (1,409 )      —      (1,449 ) 

Foreign Currency Exchange Contracts

      (8 )      1,014        —      1,006   

Interest Rate Swap Contracts

      —        4,653        —      4,653   

Credit Default Swaps Contracts

      —        (4,057 )      —      (4,057 ) 
                               

Total Other Financial Instruments*

      11,421        201        —      11,622   
                               

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending January 31, 2010 were less than 1% of net assets.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Strategic Bond Fund   131

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Long-Term Investments - 85.8%        
Asset-Backed Securities - 5.0%        

Aames Mortgage Investment Trust (Ê)(Þ)
Series 2005-3 Class A1
0.381% due 08/25/35

    178      175

Accredited Mortgage Loan Trust (Ê)
Series 2004-2 Class A2
0.531% due 07/25/34

    126      60

ACE Securities Corp. (Ê)
Series 2003-OP1 Class M2
1.731% due 12/25/33

    75      59

Series 2005-SD3 Class A
0.631% due 08/25/45

    205      180

Series 2006-HE4 Class A2A
0.291% due 10/25/36

    100      63

Aegis Asset Backed Securities Trust (Ê)
Series 2003-3 Class M2
2.706% due 01/25/34

    327      181

Ally Auto Receivables Trust (Þ)
Series 2009-A Class A2
1.320% due 03/15/12

    300      302

Ameriquest Mortgage Securities, Inc. (Ê)
Series 2002-D Class M1
3.981% due 02/25/33

    155      54

Series 2004-R10 Class A5
0.621% due 11/25/34

    2      2

Asset Backed Funding Certificates (Ê)
Series 2006-HE1 Class A2A
0.291% due 01/25/37

    107      104

Asset Backed Securities Corp. Home Equity (Ê)
Series 2006-HE2 Class A1A
0.481% due 03/25/36

    1,346      120

Bank of America Credit Card Trust (Ê)
Series 2007-A12 Class A12
0.433% due 01/15/13

    8,200      8,195

Bayview Financial Acquisition Trust
Series 2006-A Class 1A3
5.865% due 02/28/41

    410      266

Bear Stearns Asset Backed Securities Trust (Ê)
Series 2003-1 Class A1
0.731% due 11/25/42

    111      98

Series 2003-SD1 Class A
0.681% due 12/25/33

    90      75

Series 2005-2 Class A3
0.631% due 06/25/35

    6      6

Series 2006-SD2 Class A2
0.431% due 06/25/36

    225      205

Series 2007-HE5 Class 1A1
0.321% due 06/25/47

    34      31

Series 2007-HE6 Class 1A1
1.481% due 08/25/37

    696      483

BNC Mortgage Loan Trust (Ê)
Series 2007-2 Class A2
0.331% due 05/25/37

    144      127
     Principal
Amount ($)
or Shares		      Market
Value
$

Business Loan Express (Ê)(Þ)
Series 2003-2A Class A
1.031% due 01/25/32

    235      159

Carrington Mortgage Loan Trust (Ê)
Series 2005-NC5 Class A2
0.551% due 10/25/35

    152      140

Series 2006-NC3 Class A3
0.381% due 08/25/36

    2,105      993

Centerline REIT, Inc. (Þ)
Series 2004-RR3 Class B
5.040% due 09/21/45

    515      135

Centex Home Equity (Ê)
Series 2006-A Class AV4
0.481% due 06/25/36

    1,700      945

Citigroup Mortgage Loan Trust, Inc. (Ê)
Series 2006-SHL Class A1 (Þ)
0.431% due 11/25/45

    726      534

Series 2007-AHL Class A3A
0.291% due 07/25/45

    212      167

Series 2007-AMC Class A2A
0.341% due 03/25/37

    182      166

0.291% due 05/25/37

    688      613

Countrywide Asset-Backed Certificates
Series 2001-BC3 Class A (Ê)
0.711% due 12/25/31

    76      37

Series 2004-AB2 Class M3 (Ê)
0.831% due 05/25/36

    310      40

Series 2004-BC1 Class M1 (Ê)
0.981% due 02/25/34

    193      165

Series 2005-4 Class MV1 (Ê)
0.691% due 10/25/35

    1,050      1,012

Series 2005-17 Class 1AF3
5.711% due 05/25/36

    2,250      1,014

Series 2006-3 Class 3A1 (Ê)
0.351% due 06/25/36

    243      199

Series 2006-6 Class 2A2 (Ê)
0.411% due 09/25/36

    437      341

Series 2006-11 Class 1AF4
6.300% due 09/25/46

    503      212

Series 2006-BC1 Class 1A (Ê)
0.431% due 04/25/36

    862      673

Series 2006-BC4 Class 2A2 (Ê)
0.391% due 11/25/36

    2,220      1,574

Series 2007-7 Class 2A1 (Ê)
0.311% due 10/25/47

    91      85

Countrywide Home Equity Loan Trust (Ê)
Series 2005-A Class 2A
0.473% due 04/15/35

    175      80

Series 2005-G Class 2A
0.463% due 12/15/35

    856      248

Series 2006-E Class 2A
0.373% due 07/15/36

    649      322

Series 2007-GW Class A
0.783% due 08/15/37

    1,111      817

Credit-Based Asset Servicing and Securitization LLC
Series 2004-CB7 Class AF5
4.585% due 10/25/34

    550      517

 

132   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2005-CB5 Class AV2 (Ê)
0.491% due 08/25/35

    121      113

Series 2007-RP1 Class A (Ê)(Þ)
0.541% due 05/25/46

    1,045      473

Daimler Chrysler Auto Trust (Ê)
Series 2008-B Class A2B
1.162% due 07/08/11

    216      216

Series 2008-B Class A3B
1.712% due 09/10/12

    400      402

Ellington Loan Acquisition Trust (Ê)(Þ)
Series 2007-1 Class A2A1
1.231% due 05/26/37

    614      532

Series 2007-1 Class A2C
1.481% due 05/29/37

    1,000      441

Series 2007-2 Class A2A
1.131% due 05/25/37

    1,089      974

Fannie Mae Grantor Trust (Ê)
Series 2003-T4 Class 1A
0.451% due 09/26/33

    135      115

Fannie Mae Whole Loan (Ê)
Series 2003-W5 Class A
0.451% due 04/25/33

    172      150

Series 2003-W9 Class A
0.471% due 06/25/33

    265      252

GE-WMC Mortgage Securities LLC (Ê)
Series 2006-1 Class A2A
0.271% due 08/25/36

    13      5

GMAC Mortgage Corp. Loan Trust (Ê)
Series 2006-HE4 Class A1
0.411% due 12/25/36

    411      201

GSAA Trust
Series 2006-2 Class 2A3 (Ê)
0.501% due 12/25/35

    570      422

Series 2006-4 Class 1A2
5.993% due 03/25/36

    442      54

GSAMP Trust (Ê)
Series 2003-HE2 Class M1
1.206% due 08/25/33

    105      64

Hertz Vehicle Financing LLC (Þ)
Series 2009-2A Class A2
5.290% due 03/25/16

    380      392

HFC Home Equity Loan Asset Backed Certificates (Ê)
Series 2005-1 Class A
0.521% due 01/20/34

    418      376

Series 2006-2 Class A1
0.381% due 03/20/36

    1,161      1,075

Series 2006-4 Class A3V
0.381% due 03/20/36

    1,900      1,739

Series 2007-1 Class AS
0.431% due 03/20/36

    1,948      1,713

HSI Asset Securitization Corp. Trust (Ê)
Series 2006-HE2 Class 2A1
0.281% due 12/25/36

    49      39

JPMorgan Mortgage Acquisition Corp. (Ê)
Series 2006-WMC Class A2
0.281% due 08/25/36

    1      1
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2007-CH1 Class AV4
0.361% due 11/25/36

    2,575      2,074

Series 2007-CH3 Class A2
0.311% due 03/25/37

    257      239

Klio Funding, Ltd. (Ê)(Þ)
Series 2004-1A Class A1
0.828% due 04/23/39

    3,205      93

Lehman XS Trust (Ê)
Series 2005-1 Class 2A1
1.731% due 07/25/35

    385      275

Series 2005-1 Class 2A2
1.731% due 07/25/35

    101      63

Series 2005-5N Class 1A1
0.531% due 11/25/35

    449      290

Series 2005-7N Class 1A1B
0.531% due 12/25/35

    349      96

Series 2006-16N Class A1A
0.311% due 11/25/46

    114      113

Long Beach Mortgage Loan Trust (Ê)
Series 2004-4 Class 1A1
0.511% due 10/25/34

    34      27

Mastr Asset Backed Securities Trust (Ê)
Series 2003-WMC Class M2
2.706% due 08/25/33

    84      47

Morgan Stanley ABS Capital I (Ê)
Series 2003-NC8 Class M3
3.381% due 09/25/33

    46      10

Series 2005-WMC Class M1
0.701% due 01/25/35

    979      951

Series 2006-HE7 Class A2A
0.281% due 09/25/36

    92      92

Series 2007-HE2 Class A2B
0.321% due 01/25/37

    2,800      1,234

Series 2007-HE6 Class A1
0.291% due 05/25/37

    104      89

Series 2007-NC3 Class A2A
0.291% due 05/25/37

    66      61

Morgan Stanley Mortgage Loan Trust (Ê)
Series 2006-12X Class A1
0.351% due 10/25/36

    36      36

MSDWCC Heloc Trust (Ê)
Series 2005-1 Class A
0.421% due 07/25/17

    69      32

Nationstar Home Equity Loan Trust (Ê)
Series 2007-B Class 2AV1
0.351% due 04/25/37

    184      174

Nelnet Student Loan Trust (Ê)
Series 2008-4 Class A4
1.729% due 04/25/24

    490      515

New Century Home Equity Loan Trust (Ê)
Series 2004-4 Class M2
0.761% due 02/25/35

    370      247

Newcastle CDO, Ltd. (Þ)
Series 2004-4A Class 3FX
5.110% due 03/24/39

    1,103      11

Option One Mortgage Loan Trust (Ê)
Series 2003-2 Class M2
2.781% due 04/25/33

    67      20

 

Russell Investment Grade Bond Fund   133

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2003-3 Class M3
3.231% due 06/25/33

    107      24

Series 2003-4 Class M2
2.706% due 07/25/33

    99      26

Series 2007-4 Class 2A1
0.321% due 04/25/37

    684      662

Series 2007-6 Class 2A1
0.291% due 07/25/37

    252      241

Origen Manufactured Housing
Series 2005-B Class A4
5.910% due 01/15/37

    100      93

Series 2006-A Class A1 (Ê)
0.383% due 11/15/18

    229      211

Ownit Mortgage Loan Asset Backed Certificates (Ê)
Series 2006-6 Class A2C
0.391% due 09/25/37

    2,390      806

Park Place Securities, Inc. (Ê)
Series 2005-WCW Class M1
0.681% due 09/25/35

    370      194

Popular ABS Mortgage Pass-Through Trust
Series 2005-6 Class A3
5.680% due 01/25/36

    265      246

RAAC Series (Ê)(Þ)
Series 2006-RP2 Class A
0.481% due 02/25/37

    443      275

Renaissance Home Equity Loan Trust
Series 2003-3 Class A (Ê)
0.731% due 12/25/33

    322      264

Series 2005-1 Class M1
5.357% due 05/25/35

    172      73

Series 2005-2 Class AF4
4.934% due 08/25/35

    585      477

Series 2006-1 Class AF6
5.746% due 05/25/36

    296      224

Residential Asset Mortgage Products, Inc.
Series 2003-RS1 Class AI6A
5.980% due 12/25/33

    215      180

Series 2003-RS2 Class AII (Ê)
0.911% due 03/25/33

    93      59

Series 2003-RS3 Class AII (Ê)
0.951% due 04/25/33

    57      34

Residential Asset Securities Corp.
Series 2001-KS1 Class AI6
6.349% due 03/25/32

    493      348

Series 2001-KS1 Class AII (Ê)
0.701% due 03/25/32

    44      40

Series 2001-KS3 Class AII (Ê)
0.691% due 09/25/31

    40      26

Series 2003-KS2 Class MI1
4.800% due 04/25/33

    281      112

Series 2003-KS2 Class MI3
6.100% due 04/25/33

    109      27

Series 2003-KS4 Class AIIB (Ê)
0.811% due 06/25/33

    144      72

SACO I, Inc. (Ê)
Series 2005-WM3 Class A1
0.751% due 09/25/35

    55      13
     Principal
Amount ($)
or Shares		      Market
Value
$

Saxon Asset Securities Trust (Ê)
Series 2004-1 Class A
0.771% due 03/25/35

    57      36

Security National Mortgage Loan Trust (Ê)(Þ)
Series 2006-3A Class A1
0.511% due 01/25/37

    250      228

Sierra Receivables Funding Co. (Ê)(Þ)
Series 2006-1A Class A2
0.381% due 05/20/18

    122      109

SLM Student Loan Trust (Ê)
Series 2008-2 Class A1
0.549% due 01/25/15

    118      118

Series 2008-6 Class A1
0.649% due 10/27/14

    797      797

Small Business Administration Participation Certificates
Series 2003-20I Class 1
5.130% due 09/01/23

    56      59

Soundview Home Equity Loan Trust (Ê)
Series 2006-WF2 Class A2C
0.371% due 12/25/36

    2,550      1,944

Specialty Underwriting & Residential Finance (Ê)
Series 2003-BC1 Class A
0.911% due 01/25/34

    25      18

Structured Asset Securities Corp.
Series 2002-AL1 Class A3
3.450% due 02/25/32

    344      291

Series 2002-HF1 Class A (Ê)
0.521% due 01/25/33

    11      10

Series 2006-BC3 Class A2 (Ê)
0.281% due 10/25/36

    93      92

Series 2007-BC3 Class 2A2 (Ê)
0.371% due 05/25/47

    2,300      1,405

Truman Capital Mortgage Loan Trust (Ê)(Þ)
Series 2006-1 Class A
0.491% due 03/25/36

    889      546

Wachovia Asset Securitization, Inc. (Ê)
Series 2003-HE3 Class A
0.481% due 11/25/33

    110      74

Wells Fargo Home Equity Trust (Ê)
Series 2007-1 Class A1
0.331% due 03/25/37

    48      48
         
        49,014
         
Corporate Bonds and Notes - 21.2%        

Air 2 US (Þ)
8.027% due 10/01/19

    582      489

Alcoa, Inc. (Ñ)
6.000% due 07/15/13

    500      523

Allstate Life Global Funding Trusts
5.375% due 04/30/13

    400      434

Altria Group, Inc.
8.500% due 11/10/13

    220      260

9.700% due 11/10/18

    400      501

 

134   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

9.250% due 08/06/19

    10      12

9.950% due 11/10/38

    685      906

10.200% due 02/06/39

    610      821

American Airlines Pass Through Trust 2009-1A (Ñ)
10.375% due 07/02/19

    993      1,127

American Express Co.
7.000% due 03/19/18

    200      225

6.800% due 09/01/66 (Ñ)

    170      158

American Express Credit Corp.
5.875% due 05/02/13

    1,775      1,924

5.125% due 08/25/14 (Ñ)

    710      756

American General Finance Corp.
0.553% due 08/17/11 (Ê)

    2,000      1,701

6.900% due 12/15/17

    130      95

American International Group, Inc.
5.050% due 10/01/15 (Ñ)

    200      167

5.850% due 01/16/18

    80      64

6.250% due 03/15/87

    1,800      1,053

Series WI (Ñ)
8.250% due 08/15/18

    1,760      1,615

Anadarko Petroleum Corp.
5.950% due 09/15/16

    655      708

6.450% due 09/15/36

    210      216

Analog Devices, Inc.
5.000% due 07/01/14

    430      457

Anheuser-Busch InBev Worldwide, Inc. (Þ)
5.375% due 01/15/20

    2,420      2,482

Apache Corp.
6.000% due 09/15/13

    460      518

6.000% due 01/15/37 (Ñ)

    200      213

Appalachian Power Co.
Series O
5.650% due 08/15/12

    175      190

ASIF Global Financing XIX (Þ)
4.900% due 01/17/13

    50      48

AT&T, Inc.
5.100% due 09/15/14

    240      261

6.550% due 02/15/39

    100      106

BAE Systems Holdings, Inc. (Þ)
4.950% due 06/01/14

    535      564

Baker Hughes, Inc. (Ñ)
7.500% due 11/15/18

    510      620

Bank of America Capital Trust XIV (ƒ)(Ñ)
5.630% due 12/31/49

    20      14

Bank of America Capital Trust XV (Ê)
1.056% due 06/01/56

    1,300      830

Bank of America Corp.
6.500% due 08/01/16 (Ñ)

    820      888

6.000% due 09/01/17

    655      680

5.750% due 12/01/17

    950      969

8.125% due 12/29/49 (ƒ)(Ñ)

    310      294

Series MTNL
5.650% due 05/01/18

    635      641

Bank of America NA Series BKNT
0.534% due 06/15/16 (Ê)

    1,200      1,088

0.554% due 06/15/17 (Ê)

    1,340      1,199

6.000% due 10/15/36

    300      287
     Principal
Amount ($)
or Shares		      Market
Value
$

BankAmerica Capital III (Ê)
Series*
0.821% due 01/15/27

    700      476

Bear Stearns Cos. LLC (The)
6.400% due 10/02/17

    1,020      1,124

7.250% due 02/01/18

    425      487

BellSouth Corp.
4.750% due 11/15/12

    20      21

BellSouth Telecommunications, Inc.
7.000% due 12/01/95

    685      699

Boeing Capital Corp. (Ñ)
4.700% due 10/27/19

    120      121

Boeing Co. (The)
4.875% due 02/15/20

    320      327

Burlington Northern and Santa Fe Railway Co. 2005-4 Pass Through Trust
4.967% due 04/01/23

    180      195

Burlington Northern Santa Fe Corp.
6.875% due 12/01/27

    90      99

CareFusion Corp. (Ñ)(Þ)
4.125% due 08/01/12

    450      467

Carolina Power & Light Co.
6.500% due 07/15/12

    5      6

Caterpillar Financial Services Corp. (Ñ)
6.200% due 09/30/13

    650      733

Cellco Partnership / Verizon Wireless Capital LLC
2.869% due 05/20/11 (Ê)

    1,100      1,136

8.500% due 11/15/18

    100      126

CenterPoint Energy Houston Electric LLC Series J2
5.700% due 03/15/13

    350      378

CenterPoint Energy Resources Corp.
6.125% due 11/01/17

    125      133

Series B
7.875% due 04/01/13

    745      854

Cisco Systems, Inc.
5.500% due 01/15/40

    360      347

Citibank NA
1.875% due 06/04/12 (Ñ)

    100      101

Series FXD (Ñ)
1.875% due 05/07/12

    600      610

Citicorp (Ñ)
7.250% due 10/15/11

    460      486

Citigroup Capital XXI
8.300% due 12/21/77

    1,375      1,279

Citigroup Funding, Inc.
2.250% due 12/10/12

    300      305

Citigroup, Inc.
2.125% due 04/30/12

    1,500      1,530

5.500% due 08/27/12

    500      528

5.625% due 08/27/12

    300      315

5.300% due 10/17/12 (Ñ)

    200      211

5.500% due 04/11/13

    675      709

5.850% due 07/02/13

    100      106

6.500% due 08/19/13

    605      654

5.000% due 09/15/14

    1,840      1,801

 

Russell Investment Grade Bond Fund   135

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

5.500% due 10/15/14 (Ñ)

    160      165

6.010% due 01/15/15 (Ñ)

    380      395

6.000% due 08/15/17

    300      303

6.125% due 11/21/17

    980      991

6.125% due 05/15/18

    520      522

8.500% due 05/22/19 (Ñ)

    855      997

6.125% due 08/25/36

    500      424

6.875% due 03/05/38 (Ñ)

    1,500      1,497

8.125% due 07/15/39

    2,375      2,693

Clorox Co.
5.450% due 10/15/12

    295      320

Columbus Southern Power Co.
Series C
5.500% due 03/01/13

    85      92

Comcast Cable Holdings LLC
9.800% due 02/01/12

    715      814

Comcast Corp.
6.500% due 01/15/15 (Ñ)

    1,050      1,192

6.300% due 11/15/17

    1,125      1,244

6.500% due 11/15/35

    350      365

6.550% due 07/01/39

    600      631

ConocoPhillips
5.900% due 05/15/38

    60      62

6.500% due 02/01/39 (Ñ)

    295      329

ConocoPhillips Holding Co.
6.950% due 04/15/29

    715      813

Continental Airlines, Inc.
9.000% due 07/08/16 (Ñ)

    490      529

Series 071A
5.983% due 04/19/22

    2,870      2,777

Countrywide Financial Corp.
Series MTN
5.800% due 06/07/12

    450      483

COX Communications, Inc.
6.750% due 03/15/11

    440      465

Credit Suisse USA, Inc. (Ñ)
5.500% due 08/15/13

    115      127

4.875% due 01/15/15

    110      117

CVS Caremark Corp.
6.250% due 06/01/27

    515      529

CVS Pass-Through Trust
5.789% due 01/10/26 (Þ)

    250      238

5.880% due 01/01/28

    12      12

6.036% due 01/01/28

    1,033      1,039

Daimler Finance North America LLC
5.875% due 03/15/11

    300      314

DCP Midstream LLC
6.875% due 02/01/11

    45      47

6.750% due 09/15/37 (Þ)

    165      171

Dell, Inc. (Ñ)
5.650% due 04/15/18

    475      507

Delta Air Lines, Inc.
Series 00A2
7.570% due 05/18/12

    1,240      1,262

Series 01A2
7.111% due 03/18/13

    500      505

Series 071A
6.821% due 02/10/24

    1,317      1,288
     Principal
Amount ($)
or Shares		      Market
Value
$

Series A
7.750% due 12/17/19

    1,100      1,158

Dominion Resources, Inc.
5.700% due 09/17/12

    455      495

8.875% due 01/15/19

    390      494

Dow Chemical Co. (The)
8.550% due 05/15/19

    2,100      2,511

DPL, Inc.
6.875% due 09/01/11

    495      535

DTE Energy Co.
7.050% due 06/01/11

    300      319

Duke Energy Carolinas LLC
5.625% due 11/30/12

    265      294

6.000% due 01/15/38

    325      343

Duke Energy Corp.
6.300% due 02/01/14

    150      168

3.950% due 09/15/14

    335      349

Duke University (Ñ)
4.200% due 04/01/14

    1,300      1,386

5.150% due 04/01/19

    1,000      1,056

Eastman Kodak Co. (Ñ)
7.250% due 11/15/13

    70      63

Energy Future Holdings Corp.
Series P
5.550% due 11/15/14

    150      112

Series Q
6.500% due 11/15/24

    90      48

Series R
6.550% due 11/15/34

    635      333

Enterprise Products Operating LLC Series L (Ñ)
6.300% due 09/15/17

    440      485

Series O
9.750% due 01/31/14

    830      1,013

ERAC USA Finance LLC (Þ)
7.000% due 10/15/37

    1,335      1,403

Exelon Corp.
4.900% due 06/15/15

    740      777

5.625% due 06/15/35

    330      314

Express Scripts, Inc.
5.250% due 06/15/12

    275      295

Farmers Exchange Capital (Þ)
7.050% due 07/15/28

    485      432

Federal Express Corp.
7.600% due 07/01/97

    170      166

FirstEnergy Corp.
Series B
6.450% due 11/15/11

    67      72

Series C
7.375% due 11/15/31

    905      1,018

FirstEnergy Solutions Corp.
6.800% due 08/15/39

    225      240

Freeport-McMoRan Copper & Gold, Inc.
8.375% due 04/01/17

    1,090      1,185

General Electric Capital Corp.
3.000% due 12/09/11

    1,200      1,246

2.125% due 12/21/12

    1,070      1,085

 

136   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

2.800% due 01/08/13 (Ñ)

    1,045      1,046

5.900% due 05/13/14 (Ñ)

    965      1,052

5.625% due 05/01/18

    580      593

5.875% due 01/14/38

    2,895      2,681

6.875% due 01/10/39

    1,500      1,559

6.375% due 11/15/67

    770      677

Series EMTN (Ê)
0.399% due 03/20/14

    800      744

Series GMTN
2.000% due 09/28/12

    600      608

2.625% due 12/28/12 (Ñ)

    2,400      2,467

6.000% due 08/07/19

    400      414

Series MTNA
6.000% due 06/15/12

    700      758

0.514% due 09/15/14 (Ê)

    830      779

General Electric Co.
5.250% due 12/06/17

    505      527

GlaxoSmithKline Capital, Inc.
5.650% due 05/15/18

    930      1,013

GMAC, Inc. (Å)
8.000% due 12/31/18

    159      150

Goldman Sachs Capital II (ƒ)
5.793% due 12/29/49

    960      751

Goldman Sachs Group, Inc. (The)
1.029% due 12/05/11 (Ê)

    850      864

5.300% due 02/14/12

    2,155      2,299

3.250% due 06/15/12 (Ñ)

    675      707

5.450% due 11/01/12

    80      86

4.750% due 07/15/13 (Ñ)

    300      317

5.125% due 01/15/15

    1,000      1,053

6.150% due 04/01/18

    360      383

7.500% due 02/15/19 (Ñ)

    1,034      1,199

5.950% due 01/15/27 (Ñ)

    250      237

6.450% due 05/01/36

    125      119

6.750% due 10/01/37

    1,950      1,928

Hartford Financial Services Group, Inc.
5.250% due 10/15/11

    275      287

HCP, Inc.
5.950% due 09/15/11

    985      1,034

Hess Corp.
8.125% due 02/15/19

    570      695

7.875% due 10/01/29 (Ñ)

    110      133

7.300% due 08/15/31

    435      500

Historic TW, Inc.
8.050% due 01/15/16

    565      633

Humana, Inc.
7.200% due 06/15/18

    160      174

ILFC E-Capital Trust II (Þ)
6.250% due 12/21/65

    290      164

International Business Machines Corp. (Ñ)
5.700% due 09/14/17

    700      777

International Lease Finance Corp.
4.950% due 02/01/11

    1,000      942

5.350% due 03/01/12

    200      176

5.300% due 05/01/12

    200      175

5.625% due 09/20/13

    400      329

Jersey Central Power & Light Co.
5.625% due 05/01/16

    260      274
     Principal
Amount ($)
or Shares		      Market
Value
$

JPMorgan Chase & Co.
3.125% due 12/01/11 (Ñ)

    2,540      2,642

5.375% due 10/01/12

    1,070      1,159

5.375% due 01/15/14 (Ñ)

    475      510

5.125% due 09/15/14

    1,085      1,150

3.700% due 01/20/15

    790      798

5.150% due 10/01/15 (Ñ)

    520      555

6.000% due 01/15/18 (Ñ)

    425      459

6.400% due 05/15/38

    442      479

JPMorgan Chase Bank NA
Series AI (Þ)
5.875% due 06/13/16

    85      90

Series BKNT
6.000% due 10/01/17

    400      429

JPMorgan Chase Capital XIII (Ê)
Series M
1.201% due 09/30/34

    625      441

JPMorgan Chase Capital XV
5.875% due 03/15/35

    550      495

JPMorgan Chase Capital XX (Ñ)
Series T
6.550% due 09/15/66

    200      189

JPMorgan Chase Capital XXIII (Ê)
1.250% due 05/15/77

    745      522

JPMorgan Chase Capital XXVII
Series AA
7.000% due 11/01/39

    530      548

KCP&L Greater Missouri Operations Co.
11.875% due 07/01/12

    1,085      1,276

Kellogg Co.
5.125% due 12/03/12

    660      721

Kerr-McGee Corp. (Ñ)
6.950% due 07/01/24

    290      327

Kinder Morgan Energy Partners, LP
7.125% due 03/15/12

    185      205

5.000% due 12/15/13

    115      124

6.000% due 02/01/17

    60      65

6.950% due 01/15/38 (Ñ)

    1,165      1,282

6.500% due 09/01/39 (Ñ)

    330      344

Kraft Foods, Inc. (Ñ)
6.125% due 02/01/18

    900      964

Lehman Brothers Holdings Capital Trust VII (ƒ)(Ø)(Æ)
5.857% due 11/29/49

    1,450      —

Lehman Brothers Holdings, Inc. (Ø)(Æ)
5.250% due 02/06/12

    140      29

6.200% due 09/26/14

    150      31

6.500% due 07/19/17

    390      —

6.750% due 12/28/17

    990      —

6.875% due 05/02/18

    200      44

Lincoln National Corp.
6.250% due 02/15/20

    455      470

Lorillard Tobacco Co.
8.125% due 06/23/19

    745      817

Manufacturers & Traders Trust Co.
5.585% due 12/28/20

    180      159

 

Russell Investment Grade Bond Fund   137

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

MBNA Capital B (Ê)
Series B
1.049% due 02/01/27

    680      464

MBNA Corp.
6.125% due 03/01/13

    445      479

Mead Johnson Nutrition Co. (Þ)
4.900% due 11/01/19

    195      197

Merrill Lynch & Co., Inc.
0.449% due 07/25/11 (Ê)

    700      694

6.050% due 08/15/12

    200      216

5.450% due 02/05/13

    2,730      2,905

6.400% due 08/28/17

    690      722

6.220% due 09/15/26

    715      686

6.110% due 01/29/37

    620      565

MetLife, Inc.
6.125% due 12/01/11

    180      195

6.400% due 12/15/66

    1,010      889

Series A
6.817% due 08/15/18

    675      769

Metropolitan Life Global Funding I (Þ)
5.125% due 06/10/14

    300      321

MidAmerican Energy Co.
5.800% due 10/15/36

    300      308

Morgan Stanley
3.250% due 12/01/11

    520      542

5.625% due 01/09/12 (Ñ)

    510      545

4.750% due 04/01/14

    250      256

6.000% due 05/13/14

    680      741

0.701% due 10/18/16 (Ê)

    1,235      1,131

5.450% due 01/09/17

    600      621

6.250% due 08/28/17 (Ñ)

    300      320

6.625% due 04/01/18

    2,425      2,652

5.625% due 09/23/19

    1,625      1,640

Series GMTN (Ê)(Ñ)
0.549% due 01/09/14

    1,100      1,056

National City Bank (Ê)
Series BKNT
0.625% due 06/07/17

    1,400      1,243

National Semiconductor Corp.
6.600% due 06/15/17

    50      52

Nationsbank Capital Trust III (Ê)
0.801% due 01/15/27

    500      349

New Cingular Wireless Services, Inc.
7.875% due 03/01/11

    1,900      2,041

8.750% due 03/01/31

    500      648

News America Holdings, Inc.
7.900% due 12/01/95

    295      332

8.250% due 10/17/96

    65      73

News America, Inc.
6.200% due 12/15/34

    35      36

6.150% due 03/01/37

    1,220      1,239

6.650% due 11/15/37

    20      21

NGPL Pipeco LLC (Þ)
6.514% due 12/15/12

    1,835      2,028

Nisource Finance Corp.
6.400% due 03/15/18

    250      266
     Principal
Amount ($)
or Shares		      Market
Value
$

Northern States Power Co. (Ñ)
Series B
8.000% due 08/28/12

    400      463

Occidental Petroleum Corp.
7.000% due 11/01/13

    800      933

Ohio Power Co.
Series F
5.500% due 02/15/13

    45      49

Oncor Electric Delivery Co. LLC
5.950% due 09/01/13

    630      693

6.800% due 09/01/18 (Ñ)

    1,350      1,517

Oracle Corp.
5.750% due 04/15/18

    1,250      1,367

Pacific Gas & Electric Co.
8.250% due 10/15/18

    170      211

6.050% due 03/01/34

    340      354

5.800% due 03/01/37

    110      111

6.350% due 02/15/38 (Ñ)

    90      97

Panhandle Eastern Pipeline Co., LP
8.125% due 06/01/19

    1,000      1,193

Pemex Project Funding Master Trust (Ñ)
Series WI
6.625% due 06/15/35

    430      400

PepsiCo, Inc.
7.900% due 11/01/18

    470      582

Philip Morris International, Inc. (Ñ)
5.650% due 05/16/18

    300      320

Principal Life Income Funding Trusts
5.300% due 04/24/13

    300      320

Progress Energy, Inc.
7.750% due 03/01/31

    130      154

6.000% due 12/01/39

    545      541

Prudential Financial, Inc.
3.875% due 01/14/15

    235      237

Prudential Holdings LLC (Þ)
8.695% due 12/18/23

    1,175      1,277

Public Service Co. of New Mexico
7.950% due 05/15/18

    675      713

Public Service Electric & Gas Co. (Ñ)
5.300% due 05/01/18

    800      849

Qwest Corp.
7.875% due 09/01/11

    840      880

Reynolds American, Inc.
7.625% due 06/01/16 (Ñ)

    220      248

Series* (Ñ)
7.250% due 06/01/12

    40      44

Roche Holdings, Inc. (Þ)
6.000% due 03/01/19

    280      309

Simon Property Group, LP
5.300% due 05/30/13

    1,075      1,150

4.200% due 02/01/15 (Ñ)

    330      335

6.100% due 05/01/16

    295      317

Southern Natural Gas Co. (Þ)
5.900% due 04/01/17

    30      32

Southwest Airlines Co. 2007-1 Pass Through Trust
Series 07-1
6.150% due 02/01/24

    159      163

 

138   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Southwestern Electric Power Co. (Ñ)
6.450% due 01/15/19

    770      849

State Street Capital Trust IV (Ê)
1.254% due 06/01/67

    100      69

SunTrust Capital VIII
6.100% due 12/01/66

    630      462

SunTrust Preferred Capital I (ƒ)
5.853% due 12/31/49

    156      107

Teachers Insurance & Annuity Association of America (Þ)
6.850% due 12/16/39

    310      334

Tennessee Gas Pipeline Co.
8.000% due 02/01/16

    505      588

Texas-New Mexico Power Co. (Þ)
9.500% due 04/01/19

    800      988

Time Warner Cable, Inc.
6.750% due 07/01/18

    1,300      1,448

8.750% due 02/14/19

    740      915

8.250% due 04/01/19

    160      193

6.750% due 06/15/39 (Ñ)

    190      201

Series WI
5.850% due 05/01/17

    1,225      1,310

Time Warner Entertainment Co., LP (Ñ)
Series*
8.375% due 07/15/33

    105      128

Time Warner, Inc.
6.750% due 04/15/11

    680      723

6.875% due 05/01/12

    345      382

Travelers Cos., Inc. (The)
6.250% due 06/15/37

    500      541

6.250% due 03/15/67

    620      583

Union Electric Co.
6.400% due 06/15/17

    545      604

United Parcel Service, Inc.
4.500% due 01/15/13

    600      647

United Technologies Corp. (Ñ)
5.400% due 05/01/35

    70      69

UnitedHealth Group, Inc.
5.250% due 03/15/11

    280      292

6.000% due 06/15/17

    65      71

6.000% due 02/15/18 (Ñ)

    550      591

Series WI
6.500% due 06/15/37

    120      128

USB Capital IX (ƒ)(Ñ)
6.189% due 10/29/49

    200      166

Valero Energy Corp.
9.375% due 03/15/19 (Ñ)

    925      1,127

6.625% due 06/15/37

    700      659

Verizon Communications, Inc.
5.350% due 02/15/11 (Ñ)

    325      340

5.500% due 02/15/18 (Ñ)

    430      455

6.100% due 04/15/18 (Ñ)

    680      744

6.350% due 04/01/19 (Ñ)

    595      659

6.400% due 02/15/38

    810      848

8.950% due 03/01/39

    280      382

Verizon Global Funding Corp. (Ñ)
7.375% due 09/01/12

    275      312
     Principal
Amount ($)
or Shares		      Market
Value
$

Wachovia Capital Trust III (ƒ)
5.800% due 03/29/49

    340      263

Wachovia Corp.
5.500% due 05/01/13 (Ñ)

    750      813

5.700% due 08/01/13 (Ñ)

    1,180      1,279

5.250% due 08/01/14 (Ñ)

    460      487

5.625% due 10/15/16

    400      416

Series*(Ê)
0.589% due 10/28/15

    400      367

Wal-Mart Stores, Inc. (Ñ)

        

5.800% due 02/15/18

    410      459

6.200% due 04/15/38

    90      97

Washington Mutual, Inc. (Ñ)
5.000% due 03/22/12

    425      420

Waste Management, Inc.
6.375% due 11/15/12

    555      615

6.125% due 11/30/39

    360      365

WEA Finance LLC / WT Finance Aust Pty, Ltd. (Þ)
7.500% due 06/02/14

    495      565

6.750% due 09/02/19

    120      131

WellPoint, Inc.
5.875% due 06/15/17

    30      33

7.000% due 02/15/19 (Ñ)

    200      231

Wells Fargo & Co. (ƒ)(Ñ)
Series K
7.980% due 03/29/49

    900      909

Wells Fargo Capital X (Ñ)
5.950% due 12/15/36

    200      183

Wells Fargo Capital XV (ƒ)(Ñ)
9.750% due 12/31/49

    960      1,022

Williams Cos., Inc. (The)
7.875% due 09/01/21

    325      393

Series A
7.500% due 01/15/31

    425      481

Series WI

8.750% due 01/15/20

    1,135      1,458

Wyeth
5.950% due 04/01/37

    350      364

Xerox Corp.
5.500% due 05/15/12

    570      608

6.750% due 12/15/39

    560      591

XTO Energy, Inc.
7.500% due 04/15/12

    130      147

5.500% due 06/15/18 (Ñ)

    750      810

6.500% due 12/15/18

    590      677
         
        209,950
         
International Debt - 5.5%        

America Movil SAB de CV
5.625% due 11/15/17 (Ñ)

    180      188

5.000% due 10/16/19 (Þ)

    550      542

Anadarko Finance Co.
Series B
7.500% due 05/01/31

    475      537

ANZ National International, Ltd. (Þ)
6.200% due 07/19/13

    1,600      1,784

 

Russell Investment Grade Bond Fund   139

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

ArcelorMittal
5.375% due 06/01/13

    1,075      1,145

9.850% due 06/01/19

    680      864

AstraZeneca PLC (Ñ)
5.900% due 09/15/17

    300      337

Bank of Scotland PLC (Þ)
5.250% due 02/21/17

    230      232

Bank of Tokyo-Mitsubishi UFJ, Ltd. (Å)
2.600% due 01/22/13

    460      462

3.850% due 01/22/15

    300      304

Banque Centrale de Tunisie
8.250% due 09/19/27

    550      668

Barclays Bank PLC
5.200% due 07/10/14

    280      299

6.050% due 12/04/17 (Þ)

    140      145

6.750% due 05/22/19 (Ñ)

    455      508

Barrick Australian Finance Pty, Ltd.
5.950% due 10/15/39

    310      307

BNP Paribas (ƒ)(Þ)
5.186% due 06/29/49

    1,900      1,690

BP Capital Markets PLC
5.250% due 11/07/13

    650      717

3.875% due 03/10/15

    200      209

CODELCO Inc. (Þ)
7.500% due 01/15/19

    400      484

6.150% due 10/24/36

    100      105

Commonwealth Bank of Australia (Þ)
3.750% due 10/15/14

    250      253

5.000% due 10/15/19 (Ñ)

    110      111

Credit Agricole SA (ƒ)(Þ)
8.375% due 10/29/49

    560      605

Credit Suisse Guernsey, Ltd. (ƒ)
5.860% due 05/29/49

   520      458

Series 1 (Ê)
0.940% due 05/29/49

    725      542

Credit Suisse NY
5.000% due 05/15/13

    1,000      1,078

5.500% due 05/01/14

    500      547

6.000% due 02/15/18

    500      528

5.300% due 08/13/19 (Ñ)

    155      159

Danske Bank A/S (Þ)
2.500% due 05/10/12

    300      307

Depfa ACS Bank (Å)
5.125% due 03/16/37

    400      299

Deutsche Bank AG (Ñ)
5.375% due 10/12/12

    350      382

6.000% due 09/01/17

    1,000      1,111

Deutsche Telekom International Finance BV
5.750% due 03/23/16

    300      323

Dexia Credit Local (Ê)(Þ)
0.899% due 09/23/11

    500      504

Diageo Capital PLC
7.375% due 01/15/14

    980      1,154

Electricite De France (Þ)
5.500% due 01/26/14

    400      442

6.500% due 01/26/19 (Ñ)

    400      454
     Principal
Amount ($)
or Shares		      Market
Value
$

6.950% due 01/26/39

    400      466

European Investment Bank
1.625% due 03/15/13

    2,420      2,412

2.375% due 03/14/14 (Ñ)

    825      829

2.875% due 01/15/15

    920      930

Export-Import Bank of China (Þ)
4.875% due 07/21/15

    200      213

Gaz Capital SA (Þ)
7.343% due 04/11/13

    100      105

6.212% due 11/22/16

    100      99

8.146% due 04/11/18

    500      543

General Electric Capital Corp. (Þ)
5.500% due 09/15/67

    300      343

Glitnir Banki HF (Å)
6.330% due 07/28/11

    270      68

6.375% due 09/25/12

    390      98

6.693% due 06/15/16

    700      —

HBOS Capital Funding, LP (ƒ)(Ñ)(Þ)
6.071% due 06/29/49

    110      81

HBOS PLC (Þ)
6.750% due 05/21/18

    2,425      2,371

HSBC Holdings PLC
6.500% due 05/02/36 (Ñ)

    500      528

6.500% due 09/15/37

    500      523

Ingersoll-Rand Global Holding Co., Ltd. (Ñ)
9.500% due 04/15/14

    340      416

Kaupthing Bank Hf (Å)
5.750% due 10/04/11

    100      25

7.625% due 02/28/15

    1,210      296

7.125% due 05/19/16

    1,480      —

Korea Electric Power Corp. (Þ)
5.125% due 04/23/34

    155      166

LBG Capital No. 1 PLC (Å)
8.500% due 12/29/49

    200      166

Lloyds TSB Bank PLC (Å)
4.375% due 01/12/15

    400      398

5.800% due 01/13/20

    420      415

Merrill Lynch & Co., Inc. (Ê)
1.060% due 03/22/11

    100      136

Mexico Government International Bond
6.050% due 01/11/40 (Ñ)

    200      193

Series MTNA
6.750% due 09/27/34

    333      350

Motors Liquidation Co. (Ø)(Æ)
8.375% due 07/05/33

    160      58

MUFG Capital Finance 1, Ltd. (ƒ)
6.346% due 07/29/49

    200      194

National Australia Bank, Ltd. (Þ)
5.350% due 06/12/13

    600      652

Nordea Bank AB
3.700% due 11/13/14 (Þ)

    360      366

4.875% due 01/27/20 (Ñ)(Å)

    240      238

Petrobras International Finance Co.
6.125% due 10/06/16 (Ñ)

    150      160

5.750% due 01/20/20

    747      739

Petroleos Mexicanos (Å)
6.000% due 03/05/20

    400      396

 

140   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Petroleum Export, Ltd. (Þ)
5.265% due 06/15/11

    88      86

Rabobank Nederland NV (ƒ)(Ñ)(Þ)
11.000% due 06/29/49

    305      390

Ras Laffan Liquefied Natural Gas Co., Ltd. III (Þ)
5.838% due 09/30/27

    250      251

Resona Bank, Ltd. (ƒ)(Þ)
5.850% due 09/29/49

    100      92

Resona Preferred Global Securities Cayman, Ltd. (ƒ)(Þ)
7.191% due 12/29/49

    405      376

Rio Tinto Finance USA, Ltd.
6.500% due 07/15/18

    630      700

Royal Bank of Scotland Group PLC
6.400% due 10/21/19 (Ñ)

    460      473

Series 1 (ƒ)
9.118% due 03/31/49

    200      172

Series U (ƒ)
7.640% due 03/29/49

    100      58

Royal Bank of Scotland PLC (The) (Ê)(Þ)
0.650% due 04/08/11

    4,300      4,308

RSHB Capital SA for OJSC Russian Agricultural Bank (Þ)
6.299% due 05/15/17

    110      109

Russia Government International Bond Series REGS
7.500% due 03/31/30

    45      51

Santander Perpetual SA Unipersonal (ƒ)(Þ)
6.671% due 10/29/49

    900      853

Santander US Debt SA Unipersonal (Å)
3.724% due 01/20/15

    400      403

Shinsei Finance Cayman, Ltd. (ƒ)(Ñ)(Þ)
6.418% due 01/29/49

    630      384

Siemens Financieringsmaatschappij NV (Þ)
5.500% due 02/16/12

    1,400      1,517

SMFG Preferred Capital USD 1, Ltd. (ƒ)(Þ)
6.078% due 01/29/49

    1,120      1,066

Societe Financement de l’Economie Francaise (Þ)
2.375% due 03/26/12

    300      307

0.451% due 07/16/12 (Ê)

    1,000      1,005

Systems 2001 AT LLC (Þ)
7.156% due 12/15/11

    148      154

Telecom Italia Capital SA
6.200% due 07/18/11

    290      308

5.250% due 10/01/15

    690      729

6.999% due 06/04/18

    470      521

Temasek Financial I, Ltd. (Þ)
4.300% due 10/25/19

    300      295

TNK-BP Finance SA (Ñ)(Þ)
Series 144a
7.500% due 07/18/16

    340      350

TransCapitalInvest, Ltd. for OJSC AK Transneft (Þ)
8.700% due 08/07/18

    200      231

Tyco International Finance SA
6.750% due 02/15/11

    110      116
     Principal
Amount ($)
or Shares		      Market
Value
$

6.375% due 10/15/11

    465      501

6.000% due 11/15/13

    835      926

Tyco International, Ltd. / Tyco International Finance SA
6.875% due 01/15/21 (Ñ)

    20      23

Series WI (Ñ)
7.000% due 12/15/19

    50      58

UBS AG (Ñ)
3.875% due 01/15/15

    310      310

Vale Overseas, Ltd.
6.250% due 01/23/17

    100      106

6.875% due 11/21/36

    497      512

6.875% due 11/10/39

    215      220

Vodafone Group PLC
4.150% due 06/10/14

    245      257
         
        53,975
         
Mortgage-Backed Securities - 38.4%        

Adjustable Rate Mortgage Trust (Ê)
Series 2005-3 Class 8A2
0.471% due 07/25/35

    155      130

American Home Mortgage Investment Trust (Ê)
Series 2004-4 Class 4A
2.484% due 02/25/45

    164      129

Series 2005-4 Class 1A1
0.521% due 11/25/45

    667      386

Banc of America Alternative Loan Trust
Series 2003-2 Class CB2 (Ê)
0.731% due 04/25/33

    90      78

Series 2003-10 Class 2A2 (Ê)
0.681% due 12/25/33

    251      223

Series 2006-5 Class CB17
6.000% due 06/25/46

    661      472

Banc of America Commercial Mortgage, Inc.
Series 2005-2 Class A4
4.783% due 07/10/43

    1,100      1,132

Series 2005-3 Class A2
4.501% due 07/10/43

    378      378

Series 2006-1 Class A4
5.372% due 09/10/45

    910      912

Series 2006-3 Class A4
5.889% due 07/10/44

    1,330      1,209

Series 2006-6 Class A4
5.356% due 10/10/45

    600      553

Series 2007-2 Class AAB
5.639% due 04/10/49

    990      1,000

Series 2007-3 Class A3
5.658% due 06/10/49

    200      199

Series 2007-5 Class A3
5.620% due 02/10/51

    20      20

Banc of America Funding Corp.
Series 2005-5 Class 1A11
5.500% due 09/25/35

    767      678

Series 2005-D Class A1 (Ê)
3.131% due 05/25/35

    294      271

 

Russell Investment Grade Bond Fund   141

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-A Class 3A2
5.781% due 02/20/36

    320      182

Series 2007-E Class 4A1 (Ê)
5.718% due 07/20/47

    784      514

Banc of America Mortgage Securities, Inc.
Series 2003-9 Class 1A12 (Ê)
0.681% due 12/25/33

    263      253

Series 2004-1 Class 5A1
6.500% due 09/25/33

    30      31

Series 2004-2 Class 5A1
6.500% due 10/25/31

    42      41

Series 2004-11 Class 2A1
5.750% due 01/25/35

    579      579

Series 2005-H Class 2A5 (Ê)
4.777% due 09/25/35

    575      475

Series 2005-L Class 3A1 (Ê)
5.390% due 01/25/36

    395      338

Series 2006-2 Class A15
6.000% due 07/25/46

    536      486

Series 2006-B Class 1A1 (Ê)
4.354% due 10/20/46

    179      121

Bear Stearns Adjustable Rate Mortgage Trust
Series 2002-11 Class 1A1
5.800% due 02/25/33

    16      15

Series 2004-1 Class 23A1 (Ê)
5.456% due 04/25/34

    181      184

Series 2004-8 Class 2A1
3.707% due 11/25/34

    510      449

Series 2004-9 Class 22A1 (Ê)
4.151% due 11/25/34

    141      134

Series 2004-10 Class 22A1
4.975% due 01/25/35

    178      170

Series 2005-2 Class A1 (Ê)
2.940% due 03/25/35

    2,223      2,094

Series 2005-12 Class 13A1
5.428% due 02/25/36

    136      117

Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
5.126% due 05/25/35

    399      286

Series 2005-7 Class 22A1
5.275% due 09/25/35

    264      196

Bear Stearns Commercial Mortgage Securities
Series 2007-PW1 Class A4
5.331% due 02/11/44

    1,250      1,116

Bear Stearns Structured Products, Inc.
Series 2007-R6 Class 1A1
5.618% due 01/26/36

    427      268

Series 2007-R6 Class 2A1
5.666% due 12/26/46

    221      128

Chase Mortgage Finance Corp.
Series 2003-S8 Class A1
4.500% due 09/25/18

    315      318

Series 2005-A1 Class 2A2 (Ê)
5.232% due 12/25/35

    914      863

Series 2006-A1 Class 1A1 (Ê)
6.002% due 09/25/36

    341      321
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-S4 Class A3
6.000% due 12/25/36

    597      553

Series 2006-S4 Class A4
6.000% due 12/25/36

    227      213

Citigroup Mortgage Loan Trust, Inc.
Series 2004-HYB Class A2 (Ê)
4.674% due 02/25/34

    23      21

Series 2005-3 Class 2A2B
4.628% due 08/25/35

    518      198

Series 2005-11 Class A2A (Ê)
4.700% due 12/25/35

    288      265

Series 2005-11 Class A3 (Ê)
4.900% due 12/25/35

    426      362

Series 2007-AR8 Class 2A1A
5.876% due 07/25/37

    488      364

Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class A4
5.225% due 07/15/44

    765      790

Series 2006-CD3 Class A5
5.617% due 10/15/48

    685      687

Citimortgage Alternative Loan Trust
Series 2006-A3 Class 1A5
6.000% due 07/25/36

    364      270

Commercial Mortgage Loan Trust
Series 2008-LS1 Class A4B
6.020% due 12/10/49

    1,110      1,012

Series 2008-LS1 Class AJ
6.020% due 10/10/17

    275      123

Countrywide Alternative Loan Trust
Series 2004-2CB Class 1A4 (Ê)
0.631% due 03/25/34

    271      240

Series 2005-J8 Class 1A3
5.500% due 07/25/35

    635      519

Series 2005-J12 Class 2A1 (Ê)
0.501% due 08/25/35

    424      217

Series 2005-J13 Class 2A3
5.500% due 11/25/35

    248      194

Series 2006-9T1 Class A7
6.000% due 05/25/36

    285      204

Series 2006-J2 Class A3
6.000% due 04/25/36

    442      369

Series 2007-J2 Class 2A1
6.000% due 07/25/37

    611      409

Series 2007-OA6 Class A1B (Ê)
0.431% due 06/25/37

    597      290

Series 2007-OA7 Class A1A (Ê)
0.411% due 05/25/47

    582      279

Countrywide Home Loan Mortgage Pass Through Trust
Series 2004-16 Class 1A1 (Ê)
0.631% due 09/25/34

    224      128

Series 2004-22 Class A3
3.509% due 11/25/34

    342      292

Series 2004-HYB Class 1A1
3.401% due 02/20/35

    752      642

Series 2004-R2 Class 1AF1 (Ê)(Þ)
0.651% due 11/25/34

    33      27

 

142   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2005-3 Class 1A2 (Ê)
0.521% due 04/25/35

    126      71

Series 2005-HYB Class 3A2A (Ê)
5.250% due 02/20/36

    112      76

Series 2005-R1 Class 1AF1 (Ê)(Þ)
0.591% due 03/25/35

    39      30

Series 2005-R3 Class AF (Ê)(Þ)
0.631% due 09/25/35

    737      613

Series 2006-HYB Class 2A1A
5.639% due 05/20/36

    564      388

Series 2006-OA4 Class A1 (Ê)
1.504% due 04/25/46

    342      138

Series 2007-18 Class 2A1
6.500% due 11/25/37

    488      404

Series 2007-HY1 Class 1A2
5.639% due 04/25/37

    271      56

Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C1 Class A3
4.321% due 01/15/37

    130      132

Series 2005-9 Class 2A1
5.500% due 10/25/35

    1,010      868

Series 2005-C4 Class A3
5.120% due 08/15/38

    5,050      5,133

Credit Suisse Mortgage Capital Certificates
Series 2006-C2 Class A1
5.250% due 03/15/39

    538      549

Series 2006-C4 Class A3
5.467% due 09/15/39

    1,350      1,204

Series 2006-C5 Class A3
5.311% due 12/15/39

    750      659

Series 2006-TFL Class A1 (Ê)(Þ)
0.353% due 04/15/21

    174      164

Series 2007-C1 Class A3
5.383% due 02/15/40

    2,500      2,038

Series 2007-C3 Class A4
5.723% due 06/15/39

    2,265      1,874

Series 2007-C5 Class A3
5.694% due 09/15/40

    545      529

Series 2007-C5 Class A4
5.695% due 09/15/40

    1,200      997

Series 2008-C1 Class A3
6.216% due 02/15/41

    1,570      1,348

Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2005-AR1 Class 2A3
4.928% due 08/25/35

    1,060      580

Deutsche Mortgage Securities, Inc. (Þ)
Series 2005-WF1 Class 1A3
5.159% due 06/26/35

    920      682

Downey Savings & Loan Association Mortgage Loan Trust
Series 2004-AR3 Class 1A1B (Ê)
2.785% due 07/19/44

   117      51

Series 2005-AR6 Class 2A1A (Ê)
0.523% due 10/19/45

    584      308
     Principal
Amount ($)
or Shares		      Market
Value
$

Fannie Mae
5.190% due 2012

    718      768

7.000% due 2012

    2      2

5.500% due 2013

    4      4

6.500% due 2013

    24      26

6.500% due 2015

    10      11

7.000% due 2015

    7      7

6.000% due 2016

    94      102

6.500% due 2016

    68      74

5.500% due 2017

    129      136

6.000% due 2017

    835      903

6.500% due 2017

    161      175

7.500% due 2017

    —      1

8.500% due 2017

    3      3

4.500% due 2018

    986      1,039

5.000% due 2018

    908      968

5.500% due 2018

    925      998

6.500% due 2018

    199      220

5.000% due 2019

    1,315      1,401

6.500% due 2019

    94      103

4.000% due 2020

    596      609

4.500% due 2020

    486      512

5.000% due 2020

    611      651

6.500% due 2020

    42      46

4.000% due 2021

    283      289

5.500% due 2021

    13      13

6.000% due 2021

    162      175

5.500% due 2022

    774      828

5.000% due 2023

    68      72

5.000% due 2024

    280      296

8.000% due 2024

    75      87

8.500% due 2024

    16      18

9.000% due 2024

    3      4

7.000% due 2025

    12      13

8.000% due 2025

    1      1

8.500% due 2025

    23      26

6.000% due 2026

    252      271

7.000% due 2026

    20      23

9.000% due 2026

    4      5

7.000% due 2027

    7      8

9.000% due 2027

    1      1

6.500% due 2028

    332      361

6.500% due 2029

    987      1,080

7.000% due 2029

    88      98

6.500% due 2030

    5      5

8.000% due 2030

    99      113

6.500% due 2031

    105      114

8.000% due 2031

    78      90

5.500% due 2032

    42      44

6.000% due 2032

    287      311

6.500% due 2032

    1,237      1,350

7.000% due 2032

    278      307

8.000% due 2032

    3      5

2.783% due 2033 (Ê)

    130      134

2.853% due 2033 (Ê)

    299      308

4.500% due 2033

    5,279      5,385

 

Russell Investment Grade Bond Fund   143

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

5.000% due 2033

    3,065      3,200

5.500% due 2033

    8,355      8,888

6.000% due 2033

    223      241

6.500% due 2033

    655      715

4.500% due 2034

    130      133

5.000% due 2034

    499      520

5.500% due 2034

    6,542      6,961

6.000% due 2034

    2,459      2,655

6.500% due 2034

    665      724

2.510% due 2035 (Ê)

    370      372

2.513% due 2035 (Ê)

    537      541

2.520% due 2035 (Ê)

    251      253

2.521% due 2035 (Ê)

    245      247

2.526% due 2035 (Ê)

    237      239

2.537% due 2035 (Ê)

    205      206

2.544% due 2035 (Ê)

    1,721      1,733

3.117% due 2035 (Ê)

    247      253

3.608% due 2035 (Ê)

    431      446

4.500% due 2035

    408      415

5.000% due 2035

    2,603      2,711

5.500% due 2035

    3,951      4,201

6.000% due 2035

    4,179      4,511

5.000% due 2036

    877      913

5.500% due 2036

    8,171      8,678

6.000% due 2036

    2,724      2,922

6.500% due 2036

    1,711      1,850

7.000% due 2036

    133      146

5.500% due 2037

    2,038      2,164

5.512% due 2037 (Ê)

    553      586

5.835% due 2037 (Ê)

    114      121

6.500% due 2037

    6,107      6,584

5.000% due 2038

    10,226      10,641

5.500% due 2038

    4,837      5,130

6.000% due 2038

    2,377      2,545

4.500% due 2039

    1,233      1,247

1.671% due 2044 (Ê)

    123      121

15 Year TBA (Ï)
4.000%

    1,285      1,307

4.500%

    1,250      1,300

5.000%

    595      628

5.500%

    2,955      3,158

30 Year TBA (Ï)
5.000%

    3,225      3,351

6.000%

    5,705      5,569

6.500%

    3,650      3,931

Series 2003-343 Class 6
Interest Only STRIP
5.000% due 10/01/33

    684      143

Series 2003-345 Class 18
Interest Only STRIP
4.500% due 12/01/18

    1,593      173

Series 2003-345 Class 19
Interest Only STRIP
4.500% due 01/01/19

    1,763      186

Series 2005-365 Class 12
Interest Only STRIP
5.500% due 12/01/35

    2,039      361
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-369 Class 8
Interest Only STRIP
5.500% due 04/01/36

    506      90

Fannie Mae Grantor Trust (Ê)
Series 2002-T5 Class A1
0.471% due 05/25/32

    485      452

Fannie Mae REMICS
Series 1992-158 Class ZZ
7.750% due 08/25/22

    161      177

Series 1999-56 Class Z
7.000% due 12/18/29

    284      312

Series 2003-21 Class M
5.000% due 02/25/17

    12      12

Series 2003-32 Class FH (Ê)
0.631% due 11/25/22

    137      136

Series 2003-35 Class FY (Ê)
0.631% due 05/25/18

    753      745

Series 2003-37 Class HY
5.000% due 12/25/16

    241      247

Series 2003-78 Class FI (Ê)
0.631% due 01/25/33

    302      299

Series 2004-21 Class FL (Ê)
0.581% due 11/25/32

    175      174

Series 2005-65 Class FP (Ê)
0.481% due 08/25/35

    59      59

Series 2006-48 Class LG
Principal Only STRIP
Zero coupon due 06/25/36

    137      120

Series 2006-5 Class 3A2 (Ê)
3.805% due 05/25/35

    59      59

Series 2007-73 Class A1 (Ê)
0.291% due 07/25/37

    642      615

Fannie Mae Whole Loan
Series 2003-W1 Class 1A1
6.500% due 12/25/42

    47      51

Series 2004-W2 Class 5AF (Ê)
0.581% due 03/25/44

    322      304

Federal Home Loan Mortgage Corp. Structured
Pass Through Securities (Ê)
Series 2005-63 Class 1A1
1.744% due 02/25/45

    50      47

FHA Project Citi 68 NP
7.430% due 06/27/21

    67      67

First Horizon Alternative Mortgage Securities
Series 2004-AA3 Class A1 (Ê)
2.995% due 09/25/34

    231      202

Series 2006-AA5 Class A2 (Ê)
Interest Only STRIP
6.451% due 09/25/36

    189      4

Series 2006-AA7 Class A1 (Ê)
6.479% due 01/25/37

    1,962      951

Series 2006-FA3 Class A6
6.000% due 07/25/36

    309      250

First Horizon Asset Securities, Inc. (Ê)
Series 2005-AR5 Class 3A1
5.558% due 10/25/35

    154      136

 

144   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Freddie Mac
8.000% due 2012

    2      2

6.000% due 2013

    9      10

7.000% due 2014

    7      8

12.000% due 2014

    4      4

6.000% due 2016

    182      196

9.000% due 2016

    53      59

6.000% due 2017

    294      317

8.000% due 2017

    10      12

4.500% due 2018

    986      1,040

5.000% due 2018

    263      279

4.500% due 2019

    291      307

5.000% due 2019

    460      490

5.500% due 2019

    584      628

5.500% due 2020

    1,498      1,611

6.000% due 2022

    22      24

9.000% due 2024

    5      6

6.500% due 2025

    9      9

8.000% due 2025

    10      12

9.000% due 2025

    7      8

9.000% due 2026

    1      1

3.327% due 2027 (Ê)

    17      18

8.500% due 2027

    41      47

6.500% due 2028

    131      144

6.500% due 2029

    205      224

3.389% due 2030 (Ê)

    7      7

6.500% due 2031

    316      345

5.500% due 2032

    1,927      2,054

6.000% due 2032

    34      37

6.500% due 2032

    400      436

7.000% due 2032

    322      359

7.500% due 2032

    38      43

5.000% due 2033

    656      684

5.500% due 2033

    2,147      2,287

6.000% due 2033

    8      9

6.500% due 2033

    144      157

2.873% due 2034 (Ê)

    116      119

4.500% due 2034

    289      294

5.000% due 2034

    2,746      2,866

5.500% due 2034

    1,556      1,656

6.000% due 2034

    161      174

6.500% due 2034

    150      163

5.000% due 2035

    528      550

5.500% due 2035

    472      501

6.000% due 2035

    388      420

5.835% due 2036 (Ê)

    263      277

5.902% due 2036 (Ê)

    465      489

5.967% due 2036 (Ê)

    367      391

6.000% due 2036

    637      686

6.198% due 2036 (Ê)

    423      450

6.500% due 2036

    208      225

5.000% due 2037

    366      380

5.461% due 2037 (Ê)

    278      295

5.500% due 2037

    194      206

5.512% due 2037 (Ê)

    852      902

5.562% due 2037 (Ê)

    1,215      1,287

5.676% due 2037 (Ê)

    1,183      1,255

5.697% due 2037 (Ê)

    182      193
     Principal
Amount ($)
or Shares		      Market
Value
$

5.702% due 2037 (Ê)

    427      453

5.755% due 2037 (Ê)

    348      368

5.799% due 2037 (Ê)

    129      136

5.809% due 2037 (Ê)

    411      437

5.847% due 2037 (Ê)

    388      412

5.885% due 2037 (Ê)

    323      345

5.901% due 2037 (Ê)

    187      198

6.000% due 2037

    282      303

6.079% due 2037 (Ê)

    1,295      1,382

4.979% due 2038 (Ê)

    555      585

5.000% due 2038

    124      130

5.500% due 2038

    4,475      4,752

6.000% due 2038

    7,671      8,226

4.500% due 2039

    1,191      1,203

6.000% due 2039

    686      736

15 Year TBA (Ï)

        

5.000%

    2,500      2,641

30 Year TBA (Ï)

        

4.500%

    3,745      3,781

5.000%

    1,780      1,850

5.500%

    2,515      2,666

6.000%

    4,695      5,030

Freddie Mac REMICS
Series 1991-105 Class G
7.000% due 03/15/21

    25      28

Series 1998-210 Class ZM
6.000% due 12/15/28

    397      430

Series 2000-226 Class F (Ê)
0.683% due 11/15/30

    7      7

Series 2001-229 Class KF (Ê)
0.481% due 07/25/22

    242      241

Series 2004-277 Class UF (Ê)
0.531% due 06/15/33

    318      317

Series 2004-281 Class DF (Ê)
0.681% due 06/15/23

    292      290

Series 2005-294 Class FA (Ê)
0.401% due 03/15/20

    556      547

Series 2005-295 Class NA
4.250% due 09/15/24

    39      39

Series 2005-299 Class KF (Ê)
0.631% due 06/15/35

    183      182

Series 2005-301 Class IM

Interest Only STRIP

5.500% due 01/15/31

    282      17

Series 2005-305 Class JF (Ê)
0.531% due 10/15/35

    164      164

Series 2007-333 Class BF (Ê)
0.381% due 07/15/19

    771      760

Series 2007-333 Class FT (Ê)
0.381% due 08/15/19

    935      921

Ginnie Mae I
9.500% due 2016

    1      1

8.000% due 2017

    4      5

10.500% due 2020

    6      7

8.000% due 2022

    13      14

8.500% due 2022

    9      11

8.500% due 2024

    7      9

 

Russell Investment Grade Bond Fund   145

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

8.000% due 2025

    16      17

9.000% due 2025

    9      11

8.000% due 2026

    49      56

7.000% due 2029

    2      2

8.000% due 2029

    32      37

8.500% due 2029

    20      23

8.000% due 2030

    24      29

8.500% due 2030

    15      17

7.000% due 2031

    248      274

7.000% due 2032

    64      73

5.000% due 2033

    2,011      2,111

7.000% due 2033

    14      17

5.000% due 2035

    346      363

6.000% due 2035

    2,403      2,579

6.000% due 2036

    214      229

6.500% due 2036

    1,000      1,075

6.500% due 2037

    11,876      12,746

6.000% due 2038

    469      502

6.500% due 2038

    33,932      36,406

5.500% due 2039

    302      320

6.500% due 2039

    1,192      1,279

30 Year TBA (Ï)
5.000%

    10,482      10,915

5.500%

    715      757

6.000%

    1,480      1,580

Ginnie Mae II
4.125% due 2027 (Ê)

    28      28

3.625% due 2030 (Ê)

    76      79

4.375% due 2030 (Ê)

    12      12

7.500% due 2032

    7      7

30 Year TBA (Ï)
5.000%

    200      208

GMAC Mortgage Corp. Loan Trust
Series 2005-AR6 Class 3A1
5.294% due 11/19/35

    668      550

Goldman Sachs Mortgage Securities Corp. II
Series 2007-GG1 Class A4
5.805% due 08/10/45

    1,000      869

Government National Mortgage Association (Ê)
Series 1999-40 Class FE
0.783% due 11/16/29

    522      523

Greenpoint Mortgage Pass-Through Certificates (Ê)
Series 2003-1 Class A1
3.813% due 10/25/33

    224      167

Greenwich Capital Commercial Funding Corp.
Series 2005-GG5 Class A41
5.243% due 04/10/37

    695      716

Series 2006-GG7 Class A4
5.883% due 07/10/38

    3,350      3,263

GS Mortgage Securities Corp. II
Series 2005-GG4 Class AABA
4.680% due 07/10/39

    600      615

Series 2006-GG6 Class A4
5.553% due 04/10/38

    1,150      1,105
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-GG8 Class AAB
5.535% due 11/10/39

    575      579

GSMPS Mortgage Loan Trust (Ê)(Þ)
Series 2004-4 Class 1AF
0.631% due 06/25/34

    725      574

Series 2005-RP3 Class 1AF
0.581% due 09/25/35

    96      76

GSR Mortgage Loan Trust
Series 2004-5 Class 1A3 (Ê)
2.160% due 05/25/34

    245      204

Series 2004-7 Class 4A1
4.854% due 06/25/34

    46      41

Series 2005-AR7 Class 6A1
5.232% due 11/25/35

    475      435

Harborview Mortgage Loan Trust
Series 2004-4 Class 3A (Ê)
0.981% due 06/19/34

    133      89

Series 2005-4 Class 3A1
4.956% due 07/19/35

    314      227

Series 2005-14 Class 3A1A
5.314% due 12/19/35

    135      105

Series 2006-3 Class 1A1A (Ê)
6.151% due 06/19/36

    4,411      2,278

Impac CMB Trust (Ê)
Series 2004-5 Class 1A1
0.591% due 10/25/34

    193      143

Indymac Index Mortgage Loan Trust
Series 2005-AR1 Class 1A1
3.721% due 03/25/35

    684      460

Series 2005-AR1 Class A2
5.099% due 09/25/35

    242      183

Series 2006-AR2 Class 1A1B (Ê)
0.441% due 04/25/46

    767      403

Series 2006-AR2 Class A2 (Ê)
0.311% due 11/25/36

    50      26

Series 2006-AR3 Class 2A1A
5.939% due 03/25/36

    5,927      3,530

JPMorgan Alternative Loan Trust (Ê)
Series 2006-A4 Class A4
0.301% due 09/25/36

    99      96

Series 2006-S4 Class A1B
0.311% due 12/25/36

    212      207

JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2004-LN2 Class A1
4.475% due 07/15/41

    493      500

Series 2005-CB1 Class A4
5.280% due 01/12/43

    200      201

Series 2005-LDP Class A3A1
4.871% due 10/15/42

    1,940      1,966

Series 2005-LDP Class A4
4.918% due 10/15/42

    690      695

Series 2006-CB1 Class A4
5.481% due 12/12/44

    1,090      1,078

5.552% due 05/12/45

    785      753

Series 2006-CB1 Class ASB
5.506% due 12/12/44

    470      486

 

146   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2006-LDP Class A3B
5.447% due 05/15/45

    820      823

Series 2006-LDP Class A4
5.874% due 04/15/45

    1,580      1,586

5.399% due 05/15/45

    1,055      1,010

Series 2007-CB2 Class ASB
5.688% due 02/12/51

    1,165      1,161

Series 2007-LD1 Class A4
5.818% due 06/15/49

    1,470      1,342

5.882% due 02/15/51

    1,960      1,844

Series 2007-LDP Class A3
5.420% due 01/15/49

    3,890      3,461

Series 2008-C2 Class A1
5.017% due 02/12/51

    350      358

Series 2008-C2 Class ASB
6.125% due 02/12/51

    1,055      1,040

JPMorgan Mortgage Trust
Series 2004-A3 Class SF3
4.559% due 06/25/34

    539      529

Series 2005-A1 Class 6T1 (Ê)
5.017% due 02/25/35

    291      289

Series 2005-A2 Class 3A1
4.872% due 04/25/35

    3      3

Series 2006-A2 Class 1A1
5.457% due 04/25/36

    908      780

Series 2007-A1 Class 3A2 (Ê)
5.004% due 07/25/35

    1,419      1,235

Series 2007-A4 Class 3A1
5.873% due 06/25/37

    1,365      1,093

LB-UBS Commercial Mortgage Trust
Series 2001-C3 Class A1
6.058% due 06/15/20

    36      37

Series 2005-C3 Class A5
4.739% due 07/15/30

    820      830

Series 2005-C3 Class AAB
4.664% due 07/15/30

    1,000      1,022

Series 2005-C5 Class A4
4.954% due 09/15/30

    400      407

Series 2006-C4 Class A4
5.882% due 06/15/38

    400      399

Series 2007-C6 Class A4
5.858% due 07/15/40

    695      628

Mastr Adjustable Rate Mortgages Trust
Series 2006-2 Class 3A1
4.844% due 01/25/36

    752      636

Series 2006-OA2 Class 1A1 (Ê)
1.281% due 12/25/46

    436      178

Mastr Alternative Loans Trust
Series 2003-4 Class B1
5.710% due 06/25/33

    351      229

Series 2004-10 Class 5A6
5.750% due 09/25/34

    630      616

Mastr Asset Securitization Trust (Ê)
Series 2003-7 Class 4A35
0.631% due 09/25/33

    253      238

Series 2003-11 Class 6A8
0.731% due 12/25/33

    400      370
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2004-4 Class 2A2
0.681% due 04/25/34

    277      257

Mastr Reperforming Loan Trust (Þ)
Series 2005-1 Class 1A1
6.000% due 08/25/34

    427      393

Merrill Lynch Mortgage Investors, Inc. (Ê)
Series 2005-A10 Class A
0.441% due 02/25/36

    228      157

Merrill Lynch Mortgage Trust Series
2004-MKB Class A2
4.353% due 02/12/42

    205      207

Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2006-4 Class A3
5.172% due 12/12/49

    1,000      904

Series 2007-8 Class A3
5.957% due 08/12/49

    900      824

Series 2007-8 Class ASB
5.890% due 08/12/49

    810      796

MLCC Mortgage Investors, Inc. (Ê)
Series 2004-HB1 Class A2
0.770% due 04/25/29

    118      89

Series 2005-2 Class 3A
1.231% due 10/25/35

    121      96

Series 2005-3 Class 4A
0.481% due 11/25/35

    68      49

Morgan Stanley Capital I
Series 2005-HQ5 Class A4
5.168% due 01/14/42

    1,125      1,159

Series 2005-IQ1 Class AAB
5.178% due 09/15/42

    940      972

Series 2006-HQ1 Class A4
5.328% due 11/12/41

    345      333

Series 2006-HQ9 Class A4
5.731% due 07/12/44

    965      971

Series 2007-HQ1 Class A4
5.632% due 04/12/49

    1,045      945

Series 2007-IQ1 Class A4
5.809% due 12/12/49

    400      370

Morgan Stanley Mortgage Loan Trust
Series 2006-3AR Class 2A3
5.150% due 03/25/36

    779      495

Nomura Asset Acceptance Corp. (Þ)
Series 2004-R1 Class A1
6.500% due 03/25/34

    75      72

Series 2004-R2 Class A1
6.500% due 10/25/34

    85      80

NovaStar Mortgage-Backed Notes (Ê)
Series 2006-MTA Class 2A1A
0.421% due 09/25/46

    655      361

Prime Mortgage Trust (Ê)
Series 2004-CL1 Class 1A2
0.631% due 02/25/34

    95      86

Series 2004-CL1 Class 2A2
0.631% due 02/25/19

    15      14

Residential Accredit Loans, Inc.
Series 2004-QS5 Class A6 (Ê)
0.831% due 04/25/34

    176      133

 

Russell Investment Grade Bond Fund   147

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2004-QS8 Class A4 (Ê)
0.631% due 06/25/34

    299      256

Series 2005-QA1 Class 2A1
5.801% due 12/25/35

    1,038      504

Series 2005-QA1 Class A41
5.661% due 09/25/35

    730      497

Series 2005-QA8 Class NB3
5.474% due 07/25/35

    418      277

Series 2005-QO3 Class A1 (Ê)
0.631% due 10/25/45

    781      393

Series 2006-QO7 Class 3A2 (Ê)
0.436% due 09/25/46

    1,340      470

Residential Asset Securitization Trust
Series 2003-A15 Class 1A2 (Ê)
0.681% due 02/25/34

    378      337

Series 2007-A5 Class 2A3
6.000% due 05/25/37

    274      204

Residential Funding Mortgage Securities I (Ê)
Series 2003-S5 Class 1A2
0.681% due 11/25/18

    437      434

Series 2003-S14 Class A5
0.631% due 07/25/18

    463      375

Series 2003-S20 Class 1A7
0.731% due 12/25/33

    18      18

Salomon Brothers Mortgage Securities VII, Inc.
Series 2003-UP2 Class A1
4.000% due 12/25/18

    165      164

Sequoia Mortgage Trust (Ê)
Series 2004-3 Class A
0.929% due 05/20/34

    334      264

Small Business Administration Pools (Ê)
3.080% due 09/25/18

    142      147

Structured Adjustable Rate Mortgage Loan Trust (Ê)
Series 2005-19X Class 1A1
0.551% due 10/25/35

    438      259

Structured Asset Mortgage Investments, Inc. (Ê)
Series 2005-AR5 Class A2
0.483% due 07/19/35

    257      208

Structured Asset Securities Corp.
Series 2003-26A Class 3A5
3.160% due 09/25/33

    670      603

Series 2004-21X Class 1A3
4.440% due 12/25/34

    52      51

Series 2005-RF3 Class 1A (Ê)(Þ)
0.581% due 06/25/35

    134      101

Series 2006-11 Class A1 (Þ)
3.660% due 10/25/35

    171      144

Thornburg Mortgage Securities Trust (Ê)
Series 2003-2 Class A1
0.911% due 04/25/43

    90      77

Series 2006-6 Class A1
0.341% due 11/25/46

    281      276

Series 2007-4 Class 2A1
6.199% due 09/25/37

    686      566
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2007-4 Class 3A1
6.196% due 09/25/37

    628      525

Wachovia Bank Commercial Mortgage Trust
Series 2005-C16 Class A2
4.380% due 10/15/41

    289      294

Series 2006-WL7 Class A1 (Ê)(Þ)
0.322% due 09/15/21

    143      126

Series 2007-WHL Class A1 (Ê)(Þ)
0.313% due 06/15/20

    150      128

Washington Mutual Alternative Mortgage
Pass-Through Certificates
Series 2005-4 Class CB11
5.500% due 06/25/35

    350      268

Series 2007-OA2 Class 2A (Ê)
0.931% due 01/25/47

    450      203

Washington Mutual Mortgage Pass Through Certificates
Series 2003-S9 Class A2 (Ê)
0.781% due 10/25/33

    266      262

Series 2005-AR1 Class 1A1
4.825% due 10/25/35

    367      355

Series 2005-AR1 Class A1A1 (Ê)
0.521% due 10/25/45

    608      435

Series 2005-AR1 Class A1A2 (Ê)
0.511% due 11/25/45

    658      396

0.521% due 12/25/45

    336      213

Series 2005-AR6 Class B3 (Ê)

Interest Only STRIP

0.891% due 04/25/45

    448      17

Series 2007-HY3 Class 4B1

Interest Only STRIP

5.313% due 03/25/37

    407      37

Series 2007-HY4 Class 1A1 (Ê)
5.450% due 04/25/37

    352      250

Series 2007-OA2 Class 1A (Ê)
1.244% due 03/25/47

    431      226

Wells Fargo Mortgage Backed Securities Trust
Series 2004-CC Class A1 (Ê)
4.940% due 01/25/35

    407      382

Series 2006-2 Class 2A3
5.500% due 03/25/36

    704      628

Series 2006-AR2 Class 2A1
4.950% due 03/25/36

    478      423

Series 2006-AR8 Class 2A3
5.236% due 04/25/36

    150      134

Series 2007-8 Class 1A16
6.000% due 07/25/37

    743      609

Series 2007-10 Class 2A5
6.250% due 07/25/37

    325      293
         
        379,940
         
Municipal Bonds - 0.3%        

Iowa Tobacco Settlement
Authority Revenue Bonds
6.500% due 06/01/23

    80      68

Public Power Generation Agency
Revenue Bonds
7.242% due 01/01/41

    300      300

 

148   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

San Diego Tobacco Settlement
Revenue Funding Corp.
Revenue Bonds
7.125% due 06/01/32

      280      224

State of California General Obligation Unlimited
7.500% due 04/01/34

      100      99

5.650% due 04/01/39 (Ê)

      100      104

7.550% due 04/01/39

      1,565      1,536

7.300% due 10/01/39

      220      210

State of Illinois General Obligation Unlimited
4.071% due 01/01/14

      300      304

State of Texas General
Obligation Unlimited
4.750% due 04/01/35

      200      200

Tobacco Settlement Finance Authority of West Virginia Revenue Bonds
7.467% due 06/01/47

      485      391
         
        3,436
         
Non-US Bonds - 0.5%        

Canadian Government Bond
2.000% due 12/01/14

    CAD  1,000      916

Fortis Bank Nederland Holding NV
3.000% due 04/17/12

    EUR  400      569

Hellenic Republic
6.100% due 08/20/15

    EUR  480      643

LeasePlan Corp. NV
3.125% due 02/10/12

    EUR  700      997

Poland Government Bond
Series 1013
5.000% due 10/24/13

    PLN  2,540      865

Societe Financement de l’Economie Francaise
2.125% due 05/20/12

    EUR  400      563
         
        4,553
         
United States Government Agencies - 2.6%        

Fannie Mae

        

5.250% due 08/01/12

      330      358

4.750% due 11/19/12

      800      871

4.625% due 05/01/13

      1,000      1,076

4.625% due 10/15/13

      1,105      1,210

2.750% due 03/13/14

      1,090      1,113

5.250% due 09/15/16

      20      22

6.625% due 11/15/30

      725      888

6.210% due 08/06/38

      275      321

Federal Farm Credit Bank
5.125% due 08/25/16

      310      342

Federal Home Loan Bank
1.000% due 12/28/11

      100      100

5.375% due 05/15/19

      150      164

5.125% due 08/15/19

      160      172

4.625% due 06/12/20

      50      53

Series VB15
5.000% due 12/21/15

      460      509
     Principal
Amount ($)
or Shares		      Market
Value
$

Federal Home Loan Bank Discount Notes
5.625% due 06/11/21

    1,070      1,200

Federal Home Loan Mortgage Corp.
1.125% due 06/01/11

    1,900      1,913

1.125% due 12/15/11

    100      100

5.625% due 11/23/35

    1,240      1,245

Federal National Mortgage Association
Zero coupon due 07/05/14

    1,235      1,078

3.300% due 07/30/14

    195      196

5.000% due 04/26/17

    1,315      1,329

Zero coupon due 10/09/19

    710      413

5.125% due 08/19/24

    615      625

5.625% due 07/15/37

    45      49

Financing Corp.
Principal Only STRIP
Zero coupon due 08/03/18

    360      249

Series 1P
Zero coupon due 05/11/18

    380      267

Series 6P
Zero coupon due 08/03/18

    160      111

Series 7P
Zero coupon due 08/03/18

    290      201

Series 8P
Zero coupon due 08/03/18

    150      104

Series 11P
Zero coupon due 02/08/18

    100      71

Series 15P
Zero coupon due 03/07/19

    160      107

Series 19P
Zero coupon due 06/06/19

    50      33

Series B-P
Zero coupon due 04/06/18

    300      212

Series D-P
Zero coupon due 09/26/19

    20      13

Series E-P
Zero coupon due 11/02/18

    360      245

Freddie Mac
2.125% due 03/23/12

    4,980      5,089

5.050% due 01/26/15

    690      764

5.000% due 04/18/17

    2,200      2,418

6.750% due 03/15/31

    50      62

Tennessee Valley Authority
6.150% due 01/15/38

    345      391

5.250% due 09/15/39

    210      212
         
        25,896
         
United States Government Treasuries - 12.3%        

United States Treasury Inflation Indexed Bonds
2.000% due 01/15/16

    2,708      2,899

2.375% due 01/15/25

    2,926      3,148

2.000% due 01/15/26 (Ñ)

    174      178

2.375% due 01/15/27

    215      230

1.750% due 01/15/28

    9,023      8,803

3.875% due 04/15/29 (§)

    1,395      1,822

 

Russell Investment Grade Bond Fund   149

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

United States Treasury Notes
4.875% due 04/30/11

    1,825      1,926

4.625% due 08/31/11

    440      468

1.750% due 11/15/11

    1,645      1,675

1.125% due 01/15/12

    1,110      1,117

4.750% due 01/31/12

    390      420

1.375% due 05/15/12

    2,915      2,940

4.750% due 05/31/12

    6,735      7,316

1.375% due 09/15/12

    1,275      1,281

3.375% due 11/30/12

    2,255      2,388

1.375% due 01/15/13

    680      680

3.500% due 05/31/13

    875      931

4.250% due 11/15/13

    3,730      4,076

1.500% due 12/31/13

    1,040      1,026

4.000% due 02/15/14

    1,225      1,327

1.875% due 04/30/14

    685      681

2.625% due 12/31/14 (Ñ)

    3,210      3,257

2.250% due 01/31/15

    1,000      995

4.000% due 02/15/15

    225      243

4.125% due 05/15/15

    235      255

4.500% due 11/15/15

    970      1,069

2.375% due 03/31/16

    3,335      3,249

5.125% due 05/15/16

    610      691

3.125% due 10/31/16

    3,160      3,180

2.750% due 11/30/16

    2,960      2,907

3.250% due 12/31/16

    3,300      3,338

3.125% due 01/31/17

    5,770      5,786

3.500% due 02/15/18

    60      61

4.000% due 08/15/18 (Ñ)

    690      719

3.750% due 11/15/18

    5,775      5,894

3.125% due 05/15/19

    672      649

3.625% due 08/15/19

    2,330      2,336

8.125% due 08/15/19

    810      1,107

3.375% due 11/15/19

    5,510      5,404

8.000% due 11/15/21

    2,005      2,781

6.875% due 08/15/25

    2,370      3,084

6.000% due 02/15/26

    1,550      1,861

5.375% due 02/15/31

    800      906

4.500% due 02/15/36

    670      675

4.375% due 02/15/38 (Ñ)

    675      663

4.500% due 05/15/38

    2,700      2,707

3.500% due 02/15/39

    726      608

4.250% due 05/15/39

    5,480      5,251

4.500% due 08/15/39

    3,680      3,675

4.375% due 11/15/39

    6,320      6,182

United States Treasury
Principal Only STRIP
Zero coupon due 05/15/18 (Ñ)

    470      350

Zero coupon due 11/15/21

    4,801      2,913

Zero coupon due 02/15/25

    4,200      2,123

Zero coupon due 11/15/27

    2,690      1,180
         
        121,431
         

Total Long-Term Investments

(cost $864,578)

         848,195
         
     Principal
Amount ($)
or Shares		      Market
Value
$
Preferred Stocks - 0.4%        
Consumer Discretionary - 0.0%        

Motors Liquidation Co.

      31,725      198
         
Financial Services - 0.4%        

American International Group, Inc.

      32,300      300

DG Funding Trust (Å)

      392      3,473

Federal Home Loan Mortgage Corp.

      27,050      29

Federal National Mortgage Association (Æ)

      19,750      21

GMAC, Inc. (Ñ)(Þ)

      26      19
         
        3,842
         

Total Preferred Stocks

(cost $8,348)

         4,040
         
     Notional
Amount		       
Options Purchased - 0.0%        
(Number of Contracts)        

United States Treasury Notes 10 Year Futures
Feb 2010 117.00 Put (41)

    USD 41      11
         
Total Options Purchased
(cost $19)		         11
         
     Principal
Amount ($)
or Shares		       
Short-Term Investments - 12.2%        

Aiful Corp. (Þ)
5.000% due 08/10/10

      260      239

American Electric Power Co., Inc.
Series C
5.375% due 03/15/10

      120      121

American Express Credit Corp. (Ê)
Series MTNB
0.381% due 10/04/10

      1,300      1,299

Bank of America Corp. (Ñ)
4.375% due 12/01/10

      900      926

Citigroup Funding, Inc. (Ê)
0.349% due 07/30/10

      10,000      10,009

Citigroup, Inc.
4.125% due 02/22/10

      630      631

Credit Agricole SA (Ê)(Þ)
0.304% due 05/28/10

      600      600

Daimler Finance North America LLC
4.875% due 06/15/10

      575      583

Deutsche Telekom International Finance BV
8.500% due 06/15/10

      250      257

Dominion Resources, Inc.
4.750% due 12/15/10

      90      93

Fannie Mae
7.000% due 01/01/11

      2      2

8.000% due 01/01/11

      —      1

Federal Agricultural Mortgage Corp. Discount Notes
Zero coupon due 04/12/10

      10,000      9,999

 

150   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Federal Home Loan Bank Discount Notes (ç)
Zero coupon due 02/10/10

    2,065      2,065

Zero coupon due 02/12/10 (§)

    2,760      2,760

Federal Home Loan Mortgage Corp.
5.125% due 08/23/10

    1,820      1,869

Federal National Mortgage Association Discount Notes
Zero coupon due 02/01/10 (ç)

    1,200      1,200

Zero coupon due 02/04/10 (ç)

    1,000      1,000

Zero coupon due 08/23/10

    525      524

Freddie Mac
7.000% due 08/01/10

    3      3

6.000% due 09/01/10

    4      4

7.000% due 10/01/10

    1      1

7.000% due 12/01/10

    1      1

6.000% due 01/01/11

    18      19

7.000% due 01/01/11

    2      2

8.000% due 01/01/11

    3      3

Freddie Mac Discount Notes (ç)
Zero coupon due 02/18/10

    820      820

Zero coupon due 05/18/10

    2,625      2,624

Ginnie Mae I

        

7.000% due 01/15/11

    1      1

Goldman Sachs Group, Inc. (The) (Ñ)
4.500% due 06/15/10

    1,010      1,024

Indymac Loan Trust (Ê)
Series 2005-L1 Class A
0.431% due 06/25/10

    351      183

Series 2005-L2 Class A1
0.451% due 01/25/11

    458      204

KeyBank NA (Ê)
Series BKNT
2.507% due 06/02/10

    900      904

Koninklijke KPN NV
8.000% due 10/01/10

    620      649

Korea Development Bank/Republic of Korea (Ê)
0.391% due 04/06/10

    700      697

Kraft Foods, Inc. (Ê)
0.750% due 08/11/10

    1,700      1,699

Lehman Brothers Holdings, Inc. (Ø)(Æ)
2.951% due 05/25/10

    300      62

Metropolitan Life Global Funding I (Ê)(Þ)
0.313% due 05/17/10

    900      900

Morgan Stanley (Ê)(Ñ)
2.350% due 05/14/10

    1,100      1,107

Nisource Finance Corp.
7.875% due 11/15/10

    465      488

Option One Mortgage Securities Corp.
NIM Trust (Ê)(Þ)
Series 2006-1A
0.331% due 12/25/10

    884      619

Rabobank USA Financial Corp.
Zero coupon due 02/04/10

    3,895      3,895

Russell U.S. Cash Management Fund (£)

    59,913,721      59,914
     Principal
Amount ($)
or Shares		      Market
Value
$		  

Small Business Administration
Series 2000-P10 Class 1
7.449% due 08/10/10

    37      38   

UDR, Inc.
Series MTNE
3.900% due 03/15/10

    930      930   

United States Treasury Bills (ç)(ž)
0.020% due 02/11/10

    6,100      6,100   

0.045% due 02/18/10 (§)

    130      130   

0.061% due 03/04/10 (§)

    943      943   

United States Treasury Notes
3.875% due 09/15/10

    1,925      1,969   
           

Total Short-Term Investments

(cost $120,806)

         120,111   
           
Repurchase Agreements - 5.8%   

Agreement with Citigroup Global Markets, Inc. and State Street Bank (Tri-Party) of $29,000 dated January 29, 2010, at 0.100% to be repurchased at $29,000 on February 1, 2010 collateralized by: $29,615 par various United States Treasury Obligations, valued at $29,613.

    29,000      29,000   

Agreement with Goldman Sachs Group, Inc. and State Street Bank (Tri-Party) of $6,100 dated January 29, 2010, at 0.100% to be repurchased at $6,100 on February 1, 2010 collateralized by: $6,100 par various United States Government Agency Obligations, valued at $6,222.

    6,100      6,100   

Agreement with JPMorgan Securities, Inc. and State Street Bank (Tri-Party) of $22,100 dated January 29, 2010, at 0.110% to be repurchased at $22,100 on February 1, 2010 collateralized by: $20,654 par various United States Treasury Obligations, valued at $22,248.

    22,100      22,100   
           

Total Repurchase Agreements

(cost $57,200)

         57,200   
           
Other Securities - 5.4%        

Russell U.S. Cash Collateral Fund (×)

    31,038,587      31,039   

State Street Securities Lending Quality Trust (×)

    21,898,368      21,831   
           

Total Other Securities

(cost $52,937)

         52,870   
           

Total Investments - 109.6%

(identified cost $1,103,888)

         1,082,427   

Other Assets and Liabilities,

Net - (9.6%)

         (94,406 ) 
           
Net Assets - 100.0%         988,021   
           

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Investment Grade Bond Fund   151

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                 
                 
Long Positions                    

Euribor Futures (Germany)

    13      EUR   3,228      03/10      46

Euro-Bobl Futures (Germany)

    119      EUR   13,954      03/10      133

Euro-Bund Futures (Germany)

    23      EUR   2,838      03/10      21

Eurodollar Futures (CME)

    344      USD   85,750      03/10      1,318

Eurodollar Futures (CME)

    267      USD   66,480      06/10      486

Eurodollar Futures (CME)

    60      USD   14,903      09/10      182

Eurodollar Futures (CME)

    92      USD   22,772      12/10      235

Eurodollar Futures (CME)

    66      USD   16,274      03/11      101

Eurodollar Futures (CME)

    40      USD   9,825      06/11      51

Eurodollar Futures (CME)

    40      USD   9,790      09/11      50

Eurodollar Futures (CME)

    40      USD   9,756      12/11      48

Three Month Short Sterling Interest Rate Futures (UK)

    4      GBP   497      03/10      11

Three Month Short Sterling Interest Rate Futures (UK)

    8      GBP   992      06/10      21

United States Treasury Bonds

    64      USD   7,604      03/10      77

United States Treasury 2 Year Notes

    207      USD   45,116      03/10      137

United States Treasury 5 Year Notes

    271      USD   31,561      03/10      163

United States Treasury 10 Year Notes

    205      USD   24,222      03/10      85
Short Positions                    

Euro-Bund Futures (Germany)

    4      EUR   1      02/10      2

United States Treasury Bonds

    58      USD   6,891      03/10      82

United States Treasury 10 Year Notes

    140      USD   16,542      03/10      20
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                     3,269
                     

 

See accompanying notes which are an integral part of the Quarterly Report.

 

152   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Options Written

(Number of Contracts)

    Notional
Amount		      Market
Value
$		  
       
Eurodollar Futures          

Mar 2010 98.75 Put (12)

    USD   30      —   

Mar 2010 99.00 Call (20)

    USD   50      (36 ) 

Jun 2010 99.38 Call (29)

    USD   73      (20 ) 

Sep 2010 99.13 Call (31)

    USD   78      (29 ) 

Mar 2010 98.88 Put (8)

    USD   20      —   

Mar 2010 99.38 Put (13)

    USD   33      —   

Jun 2010 99.38 Put (29)

    USD   73      (4 ) 

Sep 2010 99.13 Put (31)

    USD   78      (13 ) 
Swaptions          

(Fund Pays/Fund Receives)

          

USD 2.800%/USD Three Month LIBOR
Feb 2010 0.00 Call (2)

      4,300      —   

USD 3.250%/USD Three Month LIBOR
Feb 2010 0.00 Call (3)

      8,200      —   

USD 2.750%/USD Three Month LIBOR
Apr 2010 0.00 Call (3)

      2,500      (2 ) 

USD 3.250%/USD Three Month LIBOR
Apr 2010 0.00 Call (6)

      12,000      (23 ) 

USD 3.500%/USD Three Month LIBOR
Apr 2010 0.00 Call (1)

      400      (2 ) 

USD 3.500%/USD Three Month LIBOR
Jun 2010 0.00 Call (3)

      3,800      (33 ) 

USD Three Month LIBOR/USD
4.000%
Feb 2010 0.00 Put (3)

      7,300      (16 ) 

USD Three Month LIBOR/USD
4.000%
Apr 2010 0.00 Put (2)

      2,300      (6 ) 

USD Three Month LIBOR/USD
4.250%
Apr 2010 0.00 Put (8)

      14,300      (95 ) 

Options Written

(Number of Contracts)

    Notional
Amount		      Market
Value
$		  

USD Three Month LIBOR/USD
5.000%
Apr 2010 0.00 Put (2)

      4,300      (4 ) 

USD Three Month LIBOR/USD
4.500%
Jun 2010 0.00 Put (3)

      5,200      (46 ) 

USD Three Month LIBOR/USD
10.000%
Jul 2010 0.00 Put (1)

      1,600      (6 ) 

USD Three Month LIBOR/USD
5.500%
Aug 2010 0.00 Put (1)

      1,000      (1 ) 

USD Three Month LIBOR/USD
6.000%
Aug 2010 0.00 Put (4)

      16,600      (22 ) 
United Stated Treasury Notes          

10 Year Futures

          

Feb 2010 119.00 Call (8)

    USD   8      (2 ) 

Feb 2010 120.00 Call (34)

    USD   34      (2 ) 

Feb 2010 121.00 Call (18)

    USD   18      —   

Apr 2010 119.00 Call (2)

    USD   2      (1 ) 

May 2010 119.00 Call (21)

    USD   21      (14 ) 

Feb 2010 114.00 Put (21)

    USD   21      —   

Feb 2010 115.00 Put (12)

    USD   12      —   

Feb 2010 115.50 Put (41)

    USD   41      (3 ) 

Feb 2010 116.00 Put (37)

    USD   37      (5 ) 

Apr 2010 114.00 Put (2)

    USD   2      (1 ) 

May 2010 112.00 Put (21)

    USD   21      (8 ) 
             

Total Liability for Options Written
(premiums received $937)

           (394 ) 
             

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Investment Grade Bond Fund   153

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts                                            
                             

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                   

Barclays Bank PLC

      USD      111      MYR      381      02/12/10      1   

Barclays Bank PLC

      USD      113      MYR      381      04/30/10      (2 ) 

Barclays Bank PLC

      CAD      975      USD      931      02/22/10      19   

Barclays Bank PLC

      MYR      381      USD      114      02/12/10      2   

Citibank

      USD      720      KRW      849,820      02/11/10      11   

Citibank

      USD      114      TWD      3,598      04/29/10      (1 ) 

Citibank

      GBP      205      USD      331      03/25/10      47   

Citibank

      PLN      2,556      USD      883      02/17/10      9   

Deutsche Bank

      USD      360      CAD      372      02/22/10      (13 ) 

Deutsche Bank

      USD      206      KRW      245,276      02/11/10      5   

Deutsche Bank

      GBP      200      USD      321      03/25/10      43   

Goldman Sachs

      USD      2,008      BRL      3,764      02/02/10      (11 ) 

Goldman Sachs

      USD      2,149      BRL      3,764      04/05/10      (175 ) 

Goldman Sachs

      BRL      3,764      USD      2,176      02/02/10      179   

HSBC

      USD      55      BRL      96      02/02/10      (4 ) 

HSBC

      BRL      96      USD      51      02/02/10      —   

JP Morgan

      USD      1,992      BRL      3,573      02/02/10      (96 ) 

JP Morgan

      USD      250      KRW      280,200      02/11/10      (9 ) 

JP Morgan

      USD      170      SGD      235      02/11/10      (2 ) 

JP Morgan

      BRL      3,573      USD      1,906      02/02/10      10   

JP Morgan

      EUR      558      USD      790      04/26/10      17   

Morgan Stanley

      USD      250      MXN      3,215      04/22/10      (6 ) 

Morgan Stanley

      USD      250      SGD      347      02/11/10      (3 ) 

Royal Bank of Canada

      USD      55      BRL      96      02/02/10      (4 ) 

Royal Bank of Canada

      BRL      96      USD      51      02/02/10      —   

Royal Bank of Scotland

      USD      194      AUD      212      02/26/10      (7 ) 

Royal Bank of Scotland

      EUR      1,632      USD      2,422      02/18/10      159   

Royal Bank of Scotland

      JPY      55,901      USD      615      02/16/10      (4 ) 

UBS

      USD      434      CNY      2,957      03/29/10      (1 ) 

UBS

      USD      666      EUR      477      02/02/10      (5 ) 

UBS

      USD      1,167      GBP      729      03/25/10      (156 ) 

UBS

      USD      110      MXN      1,481      02/16/10      3   

UBS

      EUR      477      USD      666      02/17/10      5   

UBS

      GBP      1,060      USD      1,721      03/25/10      251   
                                 

Total Unrealized Appreciation (Depreciation)on Open Foreign Currency Exchange Contracts

                     262   
                                 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

154   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Interest Rate Swaps Contracts  

Counterparty

    Notional
Amount		    Fund Receives   

Fund Pays

    Termination
Date		    Market
Value
$		  
                

Bank of America

    USD   2,400    3.000%    Three Month LIBOR    12/16/10    54   

Barclays Bank PLC

    USD   344    One month LIBOR    4.420%    11/15/21    (7 ) 

Barclays Bank PLC

    USD   339    One month LIBOR    4.524%    11/15/21    (12 ) 

Barclays Bank PLC

    USD   1,320    Three Month LIBOR    4.633%    11/15/21    (62 ) 

Barclays Bank PLC

    USD   661    Three Month LIBOR    4.540%    11/15/21    (23 ) 

Barclays Bank PLC

    USD   680    Three Month LIBOR    1.000%    02/15/25    (6 ) 

Barclays Bank PLC

    USD   530    Three Month LIBOR    1.000%    02/15/25    (2 ) 

Credit Suisse First Boston

    EUR   3,300    3.000%    Six Month EURIBOR    06/16/15    38   

Deutsche Bank

    EUR   1,200    2.090%    Consumer Price Index (France)    10/15/10    57   

Deutsche Bank

    AUD   300    4.500%    Three Month BBSW    06/15/11    (1 ) 

Deutsche Bank

    EUR   2,900    3.000%    Six Month EURIBOR    06/16/15    34   

Goldman Sachs

    USD   1,700    Six Month LIBOR    Six Month LIBOR    05/25/10    15   

Goldman Sachs

    EUR   1,500    3.000%    Six Month EURIBOR    06/16/15    17   

JP Morgan

    USD   1,377    Three Month LIBOR    1.000%    02/15/25    —   

Morgan Stanley

    USD   11,000    3.000%    Three Month LIBOR    12/16/10    249   

Morgan Stanley

    USD   1,310    Three Month LIBOR    1.000%    02/15/25    (7 ) 

Royal Bank of Scotland

    USD   1,600    4.000%    Three Month LIBOR    12/16/14    104   

UBS

    AUD   3,800    4.500%    Three Month LIBOR    06/15/11    (16 ) 
                    

Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $322

       432   
                    

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Investment Grade Bond Fund   155

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Credit Default Swap Contracts                                              
Corporate Issues                                       

Reference
Entity

   

Counter
Party

    Implied
Credit
Spread		   

Notional
Amount

    Fund (Pays)/
Receives
Fixed Rate		      Termination
Date		    Market
Value
$		  
                    

Arrow Electronics, Inc.

    Citigroupglobal Markets, Inc.    0.867%    USD    340    (0.820% )     03/20/14    1   

Berkshire Hathaway

    Deutsche Bank    0.980%    USD    2,900    (1.000% )     03/20/13    1   

Centex Corp.

    Deutsche Bank    1.147%    USD    850    (4.400% )     12/20/13    (103 ) 

Darden Restaurants, Inc

    Deutsche Bank    0.887%    USD    950    (2.250% )     03/20/14    (51 ) 

Darden Restaurants, Inc.

    Citigroupglobal Markets, Inc.    0.887%    USD    225    (2.730% )     03/20/14    (16 ) 

DR Horton Inc.

    Citibank    2.520%    USD    205    (1.000% )     09/20/16    17   

DR Horton Inc.

    Deutsche Bank    2.520%    USD    165    (1.000% )     09/20/16    14   

DR Horton Inc.

    Goldman Sachs    2.520%    USD    165    (1.000% )     09/20/16    14   

Gaz Capital for Gazprom

    Chase Securities, Inc.    2.379%    USD    200    0.970%       10/20/12    (7 ) 

Gaz Capital for Gazprom

    Chase Securities, Inc.    2.379%    USD    200    1.020%       10/20/12    (7 ) 

Gaz Capital for Gazprom

    Morgan Stanley    2.430%    USD    100    2.180%       02/20/13    (1 ) 

GE Capital Corp.

    Citibank    1.808%    USD    1,000    5.000%       06/20/11    44   

GE Capital Corp.

    Credit Suisse First Boston    1.500%    USD    600    6.550%       12/20/10    27   

GE Capital Corp.

    Deutsche Bank    1.848%    USD    200    1.500%       09/20/11    (1 ) 

GE Capital Corp.

    Deutsche Bank    1.941%    USD    1,425    1.070%       12/20/12    (34 ) 

Hewelett-Packard Co.

    Citigroupglobal Markets, Inc.    0.351%    USD    340    (0.720% )     03/20/14    (5 ) 

Home Depot, Inc.

    Citigroupglobal Markets, Inc.    0.677%    USD    1,095    (2.670% )     03/20/14    (87 ) 

KB Home

    Citibank    3.438%    USD    205    (1.000% )     09/20/16    26   

Kohl’s

    Deutsche Bank    0.744%    USD    260    (1.000% )     12/20/14    (3 ) 

Kohl’s

    JP Morgan    0.744%    USD    260    (1.000% )     12/20/14    (3 ) 

Lowe’s Cos., Inc.

    Citigroupglobal Markets, Inc.    0.563%    USD    1,140    (1.200% )     03/20/14    (29 ) 

Metlife, Inc.

    Deutsche Bank    1.720%    USD    1,500    2.050%       03/20/13    15   

Metlife, Inc.

    UBS    1.720%    USD    1,500    2.050%       03/20/13    15   

Nordstrom, Inc.

    Deutsche Bank    0.801%    USD    525    (2.100% )     03/20/14    (27 ) 

Prudential

    Deutsche Bank    1.400%    USD    1,500    2.300%       03/20/13    41   

Prudential

    UBS    1.400%    USD    1,500    2.300%       03/20/13    41   

Pulte Homes, Inc.

    Goldman Sachs    2.706%    USD    1,800    (1.000% )     09/20/16    168   

SLM Corp.

    JP Morgan    4.782%    USD    900    4.300%       03/20/13    (12 ) 

Target Corp

    Credit Suisse First Boston    0.564%    USD    260    (1.000% )     12/20/14    (5 ) 

Target Corp

    Deutsche Bank    0.564%    USD    260    (1.000% )     12/20/14    (5 ) 

Target Corp.

    Credit Suisse First Boston    1.767%    USD    530    (1.000% )     09/20/16    23   

United Kingdom Gilt

    BNP Paribas    0.804%    USD    100    (1.000% )     12/20/14    1   

United Kingdom Gilt

    Deutsche Bank    0.804%    USD    800    (1.000% )     12/20/14    7   

United Kingdom Gilt

    JP Morgan    0.804%    USD    100    (1.000% )     12/20/14    1   

Wachovia

    JP Morgan    0.885%    USD    2,700    3.020%       03/20/13    175   
                        

Total Market Value of Open Corporate Issue Credit Default Swap Contracts Premiums Paid (Received) - $60

          235   
                        

 

See accompanying notes which are an integral part of the Quarterly Report.

 

156   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Credit Indices                                        

Reference
Entity

   

Counter
Party

    Notional
Amount		    Fund (Pays)/
Receives
Fixed Rate		      Termination
Date		    Market
Value
$		  
                 

ABX - HE Index for Sub-Prime Home Equity Sector

    Barclays Bank PLC    USD    2,500    0.760%       01/25/38    (1,545 ) 

ABX - HE Index for Sub-Prime Home Equity Sector

    JP Morgan    USD    2,750    0.090%       08/25/37    (1,790 ) 

ABX - HE Index for Sub-Prime Home Equity Sector

    JP Morgan    USD    1,221    0.170%       05/25/46    (1,079 ) 

CMBX AJ Index

    Bank of America    USD    270    (0.840% )     10/12/52    69   

CMBX AJ Index

    Barclays Bank PLC    USD    1,335    (0.840% )     10/12/52    339   

CMBX AJ Index

    Barclays Bank PLC    USD    1,600    (0.840% )     10/12/52    406   

CMBX AJ Index

    Barclays Bank PLC    USD    2,420    (0.840% )     10/12/52    615   

CMBX AJ Index

    Credit Suisse First Boston    USD    115    (0.840% )     10/12/52    29   

Dow Jones CDX Index

    Chase Securities, Inc.    USD    400    1.120%       12/20/12    10   

Dow Jones CDX Index

    Deutsche Bank    USD    1,543    0.708%       12/20/12    27   

Dow Jones CDX Index

    Goldman Sachs    USD    1,300    1.120%       12/20/12    33   

Dow Jones CDX Index

    Goldman Sachs    USD    289    0.548%       12/20/17    4   

Dow Jones CDX Index

    JP Morgan    USD    675    0.553%       12/20/17    9   

Dow Jones CDX Index

    Morgan Stanley    USD    5,498    0.771%       12/20/12    104   

Dow Jones CDX Index

    Morgan Stanley    USD    600    0.963%       12/20/12    12   
                     

Total Market Value of Open Credit Index Credit Default Swap Contracts Premiums Paid (Received) - ($2,121)

          (2,757 ) 
                     

Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - ($2,061)

          (2,522 ) 
                     

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Investment Grade Bond Fund   157

Table of Contents

Russell Investment Company

Russell Investment Grade Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

       Market Value  

Portfolio Summary

      Level 1      Level 2      Level 3      Total  
               

Long-Term Investments

                

Asset-Backed Securities

      $ —       $ 48,395       $ 619      $ 49,014   

Corporate Bonds and Notes

        —         209,950         —        209,950   

International Debt

        —         53,975         —        53,975   

Mortgage-Backed Securities

        —         379,873         67        379,940   

Municipal Bonds

        —         3,436         —        3,436   

Non-US Bonds

        —         4,553         —        4,553   

United States Government Agencies

        —         25,896         —        25,896   

United States Government Treasuries

        —         121,431         —        121,431   

Preferred Stocks

        567         —         3,473        4,040   

Options Purchased

        11         —         —        11   

Short-Term Investments

        —         119,492         619        120,111   

Repurchase Agreements

        —         57,200         —        57,200   

Other Securities

        —         52,870              52,870   
                                     

Total Investments

        578         1,077,071         4,778        1,082,427   
                                     

Other Financial Instruments

                

Futures Contracts

        3,269         —         —        3,269   

Options Written

        (137 )       (257 )       —        (394 ) 

Foreign Currency Exchange Contracts

        (5 )       267         —        262   

Interest Rate Swaps Contracts

        —         51         59        110   

Credit Default Swaps Contracts

        —         (461 )       —        (461 ) 
                                     

Total Other Financial Instruments*

        3,127         (400 )       59        2,786   
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending January 31, 2010 were less than 1% of net assets.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

158   Russell Investment Grade Bond Fund

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Long-Term Investments - 68.9%
Asset-Backed Securities - 10.8%

American Airlines Pass Through Trust 2001-01
6.817% due 05/23/11

    370      365

American Express Credit Account Master Trust (Ê)
Series 2005-4 Class A
0.303% due 01/15/15

    1,388      1,381

Series 2007-7 Class A
0.273% due 02/17/15

    3,000      2,981

Series 2009-2 Class A
1.481% due 03/15/17

    300      311

AmeriCredit Automobile Receivables Trust
Series 2009-1 Class A2
2.260% due 05/15/12

    700      706

Ameriquest Mortgage Securities, Inc. (Ê)
Series 2005-R10 Class A2B
0.451% due 12/25/35

    571      501

Asset Backed Securities Corp. Home Equity (Ê)
Series 2002-HE1 Class M1
1.883% due 03/15/32

    523      379

Series 2004-HE6 Class A1
0.506% due 09/25/34

    160      134

Atlantic City Electric Transition Funding LLC
Series 2003-1 Class A2
4.460% due 10/20/16

    1,357      1,450

Bear Stearns Asset Backed Securities Trust (Ê)
Series 2007-HE7 Class 1A1
1.231% due 10/25/37

    515      337

Capital Auto Receivables Asset Trust
Series 2008-2 Class A3A
4.680% due 10/15/12

    500      517

Capital One Multi-Asset Execution Trust
Series 2005-A6 Class A6 (Ê)
0.301% due 07/15/15

    860      850

Series 2005-A10 Class A (Ê)
0.313% due 09/15/15

    1,365      1,351

Series 2005-B1 Class B1
4.900% due 12/15/17

    820      846

Series 2006-A11 Class A11 (Ê)
0.329% due 06/17/19

    430      416

Series 2006-B1 Class B1 (Ê)
0.512% due 01/15/19

    825      749

Series 2006-C1 Class C (Ê)
0.522% due 03/17/14

    670      657

Series 2006-C2 Class C (Ê)
0.532% due 06/16/14

    570      557

Series 2006-C3 Class C3 (Ê)
0.553% due 07/15/14

    350      328

Series 2007-A4 Class A4 (Ê)
0.262% due 03/16/15

    840      833

Series 2008-A5 Class A5
4.850% due 02/18/14

    1,640      1,718
     Principal
Amount ($)
or Shares		      Market
Value
$

Carrington Mortgage Loan Trust (Ê)
Series 2006-NC5 Class A1
0.281% due 01/25/37

    328      313

Cendant Timeshare Receivables Funding LLC (Þ)
Series 2004-1A Class A1
3.670% due 05/20/16

    40      37

Centex Home Equity
Series 2003-C Class AF4
4.960% due 04/25/32

    110      103

Chase Funding Mortgage Loan Asset-Backed Certificates
Series 2001-4 Class 1A6
6.241% due 01/25/13

    11      10

Chase Issuance Trust
Series 2005-C2 Class C2 (Ê)
0.673% due 01/15/15

    1,185      1,152

Series 2007-A9 Class A9 (Ê)
0.263% due 06/16/14

    3,700      3,677

Series 2007-A15 Class A
4.960% due 09/17/12

    2,700      2,776

Series 2009-A2 Class A2 (Ê)
1.782% due 04/15/14

    800      818

CIT Marine Trust
Series 1999-A Class A4
6.250% due 11/15/19

    174      158

Citibank Credit Card Issuance Trust
Series 2007-A5 Class A5
5.500% due 06/22/12

    2,175      2,219

Citigroup Mortgage Loan Trust, Inc.
Series 2005-WF1 Class A2
4.490% due 02/25/35

    88      83

Countrywide Asset-Backed Certificates
Series 2001-BC3 Class A (Ê)
0.711% due 12/25/31

    76      37

Series 2005-1 Class AF4
5.147% due 07/25/35

    654      616

Series 2005-4 Class AF3
4.456% due 10/25/35

    80      77

Series 2005-17 Class 4A2A (Ê)
0.491% due 07/25/34

    716      605

Series 2006-3 Class 2A2 (Ê)
0.411% due 06/25/36

    375      312

Series 2006-15 Class A3
5.689% due 10/25/46

    75      50

Series 2006-S9 Class A3
5.728% due 08/25/36

    618      284

Series 2007-4 Class A2
5.530% due 09/25/37

    360      322

Credit-Based Asset Servicing and Securitization LLC
Series 2007-CB1 Class AF2
5.721% due 01/25/37

    610      294

Daimler Chrysler Auto Trust
Series 2006-C Class A4
4.980% due 11/08/11

    915      923

 

Russell Short Duration Bond Fund   159

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2008-A Class A3A
3.700% due 06/08/12

    450      458

Discover Card Master Trust
Series 2007-A2 Class A2 (Ê)
0.594% due 06/15/15

    390      387

Series 2008-A3 Class A3
5.100% due 10/15/13

    4,290      4,505

Series 2008-A4 Class A4
5.650% due 12/15/15

    630      694

Series 2009-A2 Class A (Ê)
1.532% due 02/17/15

    560      571

Series 2010-A1 Class A1 (Ê)
0.881% due 09/15/15

    575      575

Discover Card Master Trust I (Ê)
Series 1996-4 Class B
0.783% due 10/16/13

    1,260      1,247

Series 2005-4 Class A2
0.323% due 06/16/15

    405      399

Series 2006-2 Class A3
0.312% due 01/19/16

    850      832

Series 2006-3 Class A1
0.262% due 03/15/14

    1,990      1,978

Series 2007-3 Class A2
0.281% due 10/16/14

    655      649

Series 2007-3 Class B2
0.413% due 05/15/12

    1,000      971

Dunkin Securitization (Þ)
Series 2006-1 Class A2
5.779% due 06/20/31

    1,830      1,792

E-Trade RV and Marine Trust
Series 2004-1 Class A3
3.620% due 10/08/18

    425      427

Equity One ABS, Inc.
Series 2003-4 Class M1
5.369% due 10/25/34

    675      515

Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2002-50 Class A6
3.614% due 09/27/12

    99      96

Ford Credit Auto Owner Trust
Series 2009-D Class A2
1.210% due 01/15/12

    300      301

Ford Credit Floorplan Master Owner Trust (Ê)(Å)
Series 2010-1 Class A
1.882% due 12/15/14

    815      819

Fremont Home Loan Trust (Ê)
Series 2006-E Class 2A1
0.291% due 01/25/37

    152      104

GE Corporate Aircraft Financing LLC (Ê)(Þ)
Series 2004-1A Class B
1.081% due 01/25/18

    52      45

GE Equipment Midticket LLC
Series 2009-1 Class A3
2.340% due 06/17/13

    250      253

GE-WMC Mortgage Securities LLC (Ê)
Series 2006-1 Class A2A
0.271% due 08/25/36

    13      5
     Principal
Amount ($)
or Shares		      Market
Value
$

GMAC Mortgage Corp. Loan Trust
Series 2007-HE2 Class A2
6.054% due 12/25/37

    796      421

GSAMP Trust (Ê)
Series 2007-FM1 Class A2A
0.301% due 12/25/36

    262      181

Harley-Davidson Motorcycle Trust
Series 2007-3 Class A4
5.520% due 11/15/13

    2,000      2,106

Series 2009-2 Class A2
2.130% due 07/15/12

    315      317

Series 2009-2 Class A3
2.850% due 03/15/14

    880      899

HFC Home Equity Loan Asset Backed Certificates (Ê)
Series 2005-1 Class A
0.521% due 01/20/34

    239      215

Honda Auto Receivables Owner Trust
Series 2009-2 Class A3
2.790% due 01/15/13

    925      946

Household Credit Card Master Note Trust I (Ê)
Series 2007-1 Class A
0.283% due 04/15/13

    750      748

Series 2007-2 Class A
0.783% due 07/15/13

    3,860      3,853

Long Beach Mortgage Loan Trust (Ê)
Series 2004-4 Class 1A1
0.511% due 10/25/34

    20      16

Mastr Asset Backed Securities Trust (Ê)
Series 2006-HE5 Class A1
0.291% due 11/25/36

    75      74

Nissan Auto Receivables Owner Trust
Series 2008-A Class A3
3.890% due 08/15/11

    240      243

Series 2009-A Class A3
3.200% due 02/15/13

    565      582

Nissan Master Owner Trust Receivables (Ê)(Å)
Series 2010-AA Class A
1.378% due 01/15/15

    1,225      1,225

Popular ABS Mortgage Pass-Through Trust
Series 2005-5 Class AF2
4.973% due 11/25/35

    6      6

Providian Master Note Trust (Ê)(Þ)
Series 2006-C1A Class C1
0.782% due 03/15/15

    1,185      1,173

Railcar Leasing LLC (Þ)
Series 1997-1 Class A2
7.125% due 01/15/13

    508      503

Renaissance Home Equity Loan Trust
Series 2005-4 Class A3
5.565% due 02/25/36

    133      123

Series 2006-3 Class AF2
5.580% due 11/25/36

    227      203

Series 2006-4 Class AF2
5.285% due 01/25/37

    585      464

 

160   Russell Short Duration Bond Fund

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2007-2 Class AF2
5.675% due 06/25/37

    295      157

SBI Heloc Trust (Ê)(Þ)
Series 2006-1A Class 1A2A
0.401% due 08/25/36

    74      70

SLM Student Loan Trust (Ê)
Series 2006-9 Class A2
0.249% due 04/25/17

    110      110

Series 2008-2 Class A1
0.549% due 01/25/15

    59      59

Series 2008-7 Class A2
0.749% due 10/25/17

    2,600      2,595

Small Business Administration Participation Certificates
Series 2009-20D Class 1
4.310% due 04/01/29

    583      602

USAA Auto Owner Trust
Series 2006-2 Class A4
5.370% due 02/15/12

    256      258

Series 2008-2 Class A3
4.640% due 10/15/12

    330      339

Volkswagen Auto Loan Enhanced Trust
Series 2008-1 Class A3
4.500% due 07/20/12

    2,000      2,047

Washington Mutual Master Note Trust (Þ)
Series 2007-B1 Class B1
4.950% due 03/17/14

    990      995

Series 2007-C1 Class C1 (Ê)
0.632% due 05/15/14

    115      115

World Omni Auto Receivables Trust
Series 2009-A Class A3
3.330% due 05/15/13

    495      509
         
        72,010
         
Corporate Bonds and Notes - 18.3%     

Abbott Laboratories
5.600% due 05/15/11

    160      170

Aetna, Inc.
7.875% due 03/01/11

    200      215

AIG SunAmerica Global Financing VI (Þ)
6.300% due 05/10/11

    1,500      1,501

Allstate Life Global Funding Trusts
5.375% due 04/30/13

    200      217

Alltel Corp.
7.000% due 07/01/12

    1,280      1,430

Altria Group, Inc.
8.500% due 11/10/13

    1,515      1,789

American Express Bank FSB
Series BKNT
5.500% due 04/16/13

    300      321

American Express Credit Corp.
Series C
7.300% due 08/20/13

    1,535      1,744

American Express Travel Related Services Co., Inc. (Þ)
5.250% due 11/21/11

    2,020      2,128
     Principal
Amount ($)
or Shares		      Market
Value
$

American International Group, Inc.
4.950% due 03/20/12

    100      97

Series WI
8.250% due 08/15/18

    100      92

Anheuser-Busch InBev Worldwide, Inc. (Þ)
7.200% due 01/15/14

    930      1,064

AT&T Corp.
11/15/2011
7.300% due 11/15/11

    455      503

AT&T Mobility LLC
6.500% due 12/15/11

    310      339

AT&T, Inc.
4.950% due 01/15/13

    1,500      1,616

Bank One Corp.
5.900% due 11/15/11

    1,360      1,456

Baxter International, Inc.
4.000% due 03/01/14

    100      105

BB&T Corp.
3.850% due 07/27/12

    320      335

Berkshire Hathaway Finance Corp.
Series WI
4.000% due 04/15/12

    440      465

Best Buy Co., Inc.
6.750% due 07/15/13

    205      229

Boston Scientific Corp.
4.500% due 01/15/15

    860      866

6.400% due 06/15/16

    390      420

Capmark Financial Group, Inc.
7.375% due 05/10/49

    85      24

Carolina Power & Light Co.
5.300% due 01/15/19

    415      441

Case New Holland, Inc. (Þ)
7.750% due 09/01/13

    450      462

CEDC Finance Corp. International, Inc. (Þ)
9.125% due 12/01/16

    300      315

Cenovus Energy, Inc. (Þ)
4.500% due 09/15/14

    335      353

CenterPoint Energy Houston Electric LLC
Series U
7.000% due 03/01/14

    325      376

CIT Group, Inc.
7.000% due 05/01/13

    58      53

7.000% due 05/01/14

    87      78

7.000% due 05/01/15

    387      337

7.000% due 05/01/16

    145      125

7.000% due 05/01/17

    204      174

Citibank NA
1.875% due 06/04/12

    500      507

Series FXD
1.875% due 05/07/12

    1,100      1,118

Citigroup Funding, Inc.
2.250% due 12/10/12

    2,200      2,238

Citigroup, Inc.
5.100% due 09/29/11

    1,200      1,252

2.125% due 04/30/12

    1,900      1,938

5.625% due 08/27/12

    1,585      1,664

5.500% due 04/11/13

    700      735

 

Russell Short Duration Bond Fund   161

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Commonwealth Edison Co.
Series 98
6.150% due 03/15/12

    250      273

ConocoPhillips
6.000% due 01/15/20

    625      699

Constellation Brands, Inc.
Series B
8.125% due 01/15/12

    425      425

Countrywide Home Loans, Inc.
Series MTNL
4.000% due 03/22/11

    640      660

Delta Air Lines, Inc.
Series 00A2
7.570% due 05/18/12

    1,185      1,206

Devon Energy Corp.
5.625% due 01/15/14

    615      673

DirecTV Holdings LLC (Þ)
4.750% due 10/01/14

    845      881

Discover Financial Services
10.250% due 07/15/19

    430      513

Dominion Resources, Inc.
Series B
6.250% due 06/30/12

    350      386

Dow Chemical Co. (The)
4.850% due 08/15/12

    1,180      1,260

Dr Pepper Snapple Group, Inc.
6.120% due 05/01/13

    500      558

E*trade Financial Corp.
12.500% due 11/30/17

    128      148

Series A
Zero Coupon due 08/31/19

    190      281

EI du Pont de Nemours & Co.
5.875% due 01/15/14

    190      213

El Paso Corp.
8.250% due 02/15/16

    340      366

El Paso Performance-Linked Trust (Þ)
7.750% due 07/15/11

    300      312

Enterprise Products Operating LLC
4.600% due 08/01/12

    1,000      1,065

5.900% due 04/15/13

    175      191

Express Scripts, Inc.
6.250% due 06/15/14

    290      325

Farmers Insurance Exchange (Þ)
6.000% due 08/01/14

    75      72

FirstEnergy Solutions Corp.
4.800% due 02/15/15

    655      681

Ford Motor Credit Co. LLC
9.875% due 08/10/11

    395      413

3.001% due 01/13/12 (Ê)

    300      284

Fortune Brands, Inc.
3.000% due 06/01/12

    745      744

FPL Group Capital, Inc.
5.625% due 09/01/11

    240      256

General Electric Capital Corp.
2.800% due 01/08/13

    3,050      3,052

5.500% due 01/08/20

    1,700      1,684

Series GMTN
2.000% due 09/28/12

    500      507
     Principal
Amount ($)
or Shares		      Market
Value
$

General Mills, Inc.
5.650% due 09/10/12

    415      457

GMAC, Inc.
6.000% due 12/15/11

    100      98

7.500% due 12/31/13

    4,347      4,325

Goldman Sachs Group, Inc. (The)
3.625% due 08/01/12

    1,135      1,173

5.450% due 11/01/12

    610      656

Goodyear Tire & Rubber Co. (The)
8.625% due 12/01/11

    705      730

HCA, Inc. (Þ)
7.875% due 02/15/20

    850      873

Health Net, Inc.
6.375% due 06/01/17

    500      448

Hewlett-Packard Co.
4.250% due 02/24/12

    330      349

IBM International Group Capital LLC
5.050% due 10/22/12

    335      366

International Lease Finance Corp.
5.450% due 03/24/11

    105      99

5.750% due 06/15/11

    1,055      989

6.375% due 03/25/13

    1,900      1,598

Jabil Circuit, Inc.
7.750% due 07/15/16

    175      186

8.250% due 03/15/18

    360      392

Jackson National Life Fund LLC
0.553% due 08/06/11

    2,600      2,515

John Deere Capital Corp.
4.900% due 09/09/13

    650      708

JPMorgan Chase & Co.
4.850% due 06/16/11

    1,160      1,211

4.750% due 05/01/13

    1,840      1,976

6.300% due 04/23/19

    915      1,012

Series 1 (Æ)(ƒ)
7.900% due 04/29/49

    620      635

JPMorgan Chase Bank NA (Ê)
0.584% due 06/13/16

    1,400      1,321

Kansas City Southern de Mexico SA de CV (Þ)(Å)
8.000% due 02/01/18

    450      443

Kansas City Southern Railway
13.000% due 12/15/13

    125      146

Kroger Co. (The)
3.900% due 10/01/15

    695      709

LaBranche & Co., Inc.
11.000% due 05/15/12

    375      385

Lehman Brothers Holdings Capital Trust VII (Æ)(ƒ)(Ø)
5.857% due 11/29/49

    270      —

Lehman Brothers Holdings, Inc. (Æ)(Ø)
1.000% due 04/05/11

    10      2

Marathon Oil Corp.
6.500% due 02/15/14

    150      169

Medco Health Solutions, Inc.
6.125% due 03/15/13

    485      529

7.250% due 08/15/13

    770      879

 

162   Russell Short Duration Bond Fund

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Medtronic, Inc.
4.500% due 03/15/14

    270      289

Merrill Lynch & Co., Inc. (Ê)
0.449% due 07/25/11

    500      496

MetLife, Inc.
6.400% due 12/15/66

    90      79

Metropolitan Life Global Funding I
0.651% due 07/13/11 (Ê)(Å)

    2,000      1,999

2.875% due 09/17/12 (Þ)

    175      178

5.125% due 04/10/13 (Þ)

    2,695      2,903

MGM Mirage (Þ)
10.375% due 05/15/14

    150      165

Microsoft Corp.
4.200% due 06/01/19

    1,000      1,011

Morgan Stanley
6.600% due 04/01/12

    400      439

1.048% due 03/01/13 (Ê)

    1,700      2,241

Series GMTN
4.100% due 01/26/15

    855      850

National City Corp.
4.000% due 02/01/11

    200      203

Navistar International Corp.
8.250% due 11/01/21

    420      424

NB Capital Trust IV
8.250% due 04/15/27

    360      352

News America, Inc.
6.900% due 03/01/19

    850      975

Northrop Grumman Corp.
3.700% due 08/01/14

    95      98

ONEOK Partners, LP
5.900% due 04/01/12

    800      861

PACCAR, Inc.
6.875% due 02/15/14

    700      805

Pacific Gas & Electric Co.
4.200% due 03/01/11

    480      496

Pacific Life Global Funding (Þ)
5.150% due 04/15/13

    900      951

Pfizer, Inc.
4.450% due 03/15/12

    490      522

Philip Morris International, Inc.
4.875% due 05/16/13

    3,250      3,499

6.875% due 03/17/14

    380      438

Pricoa Global Funding I (Ê)(Þ)
0.349% due 01/30/12

    200      195

0.451% due 09/27/13

    200      190

Principal Life Income Funding Trusts
5.300% due 04/24/13

    200      213

Procter & Gamble Co.
4.600% due 01/15/14

    1,365      1,472

Prudential Financial, Inc.
6.200% due 01/15/15

    310      344

Qwest Corp.
7.875% due 09/01/11

    850      890

Regions Financial Corp.
0.421% due 06/26/12 (Ê)

    1,100      980

7.750% due 11/10/14

    100      103
     Principal
Amount ($)
or Shares		      Market
Value
$

Roche Holdings, Inc. (Þ)
6.000% due 03/01/19

    1,000      1,104

SABMiller PLC (Þ)
5.500% due 08/15/13

    445      480

SLM Corp. (Ê)
0.479% due 10/25/11

    200      184

Sun Life Financial Global Funding, LP (Ê)(Þ)
0.419% due 07/06/11

    1,300      1,276

SunTrust Banks, Inc.
5.250% due 11/05/12

    2,150      2,272

TD Ameritrade Holding Corp.
4.150% due 12/01/14

    1,310      1,316

Textron Financial Corp. (Ê)
0.392% due 02/25/11

    1,350      1,286

Textron, Inc.
6.200% due 03/15/15

    595      632

Time Warner Cable, Inc.
8.250% due 02/14/14

    935      1,111

Transcontinental Gas Pipe Line Corp.
Series B
7.000% due 08/15/11

    600      647

Tyco International Finance SA
4.125% due 10/15/14

    680      709

Union Pacific Corp.
6.500% due 04/15/12

    690      757

Union Planters Corp.
7.750% due 03/01/11

    1,060      1,068

Verizon Communications, Inc.
4.350% due 02/15/13

    1,955      2,077

Wachovia Capital Trust III (ƒ)
5.800% due 03/29/49

    755      584

Wachovia Corp.
5.500% due 05/01/13

    1,100      1,193

Wal-Mart Stores, Inc.
4.250% due 04/15/13

    300      320

Walt Disney Co. (The)
4.500% due 12/15/13

    385      427

WellPoint Health Networks, Inc.
6.375% due 01/15/12

    471      509

Wells Fargo & Co.
4.375% due 01/31/13

    725      763

Series K (ƒ)
7.980% due 03/29/49

    4,600      4,646

XTO Energy, Inc.
4.625% due 06/15/13

    655      701

Yum! Brands, Inc.
4.250% due 09/15/15

    595      611

5.300% due 09/15/19

    305      315
         
        122,448
         
International Debt - 5.6%        

ANZ National International, Ltd. (Þ)
6.200% due 07/19/13

    200      223

Banco Nacional de Desenvolvimento Economico e Social (Þ)
6.500% due 06/10/19

    660      688

 

Russell Short Duration Bond Fund   163

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Banco Santander Chile (Þ)
2.875% due 11/13/12

    1,200      1,210

Bank of Tokyo-Mitsubishi UFJ, Ltd. (Å)
3.850% due 01/22/15

    600      609

BHP Billiton Finance USA, Ltd.
5.500% due 04/01/14

    200      220

Catalyst Paper Corp.
Series D
8.625% due 06/15/11

    210      182

Cemex Finance LLC (Þ)
9.500% due 12/14/16

    695      707

Colombia Government International Bond
7.375% due 03/18/19

    570      637

Commonwealth Bank of Australia (Ê)(Þ)
0.671% due 07/12/13

    4,600      4,587

Danske Bank A/S (Þ)
2.500% due 05/10/12

    200      205

Deutsche Telekom International Finance BV
4.875% due 07/08/14

    905      961

Enel Finance International SA (Þ)
3.875% due 10/07/14

    625      638

Export-Import Bank of Korea
5.875% due 01/14/15

    555      596

Galaxy Entertainment Finance Co., Ltd. (Þ)
9.875% due 12/15/12

    350      359

Gaz Capital SA (Å)(Ñ)
8.125% due 07/31/14

    800      869

Gaz Capital SA for Gazprom (Þ)
7.510% due 07/31/13

    600      636

Husky Energy, Inc.
5.900% due 06/15/14

    785      864

Hutchison Whampoa International Ltd. (Þ)
5.750% due 09/11/19

    685      695

ING Bank NV (Þ)
2.625% due 02/09/12

    3,400      3,496

3.900% due 03/19/14

    300      313

Intesa Sanpaolo
Series YCD
2.375% due 12/21/12

    2,100      2,106

Kansas City Southern de Mexico SA de CV
12.500% due 04/01/16

    100      117

Landmark CDO, Ltd. (Ê)(Å)
Series 2003-3A Class A1LA
0.721% due 01/15/16

    920      870

Norske Skogindustrier ASA (Þ)
6.125% due 10/15/15

    215      138

7.125% due 10/15/33

    100      53

PE Paper Escrow GmbH (Þ)
12.000% due 08/01/14

    200      221

Rio Tinto Finance USA, Ltd.
5.875% due 07/15/13

    1,225      1,336

Royal Bank of Scotland PLC (The) (Ê)(Þ)
6.375% due 02/01/11

    800      810

0.650% due 04/08/11

    1,500      1,503

SABMiller PLC (Þ)
6.500% due 07/01/16

    240      268
     Principal
Amount ($)
or Shares		      Market
Value
$

Societe Financement de l’Economie Francaise (Þ)
3.375% due 05/05/14

    1,300      1,349

South Africa Government International Bond
6.875% due 05/27/19

    500      554

Swedish Housing Finance Corp. (Þ)
3.125% due 03/23/12

    1,500      1,536

TNK-BP Finance SA (Þ)
Series 144a
7.500% due 07/18/16

    650      669

TransCapitalInvest, Ltd. for OJSC AK Transneft (Þ)
7.700% due 08/07/13

    1,100      1,190

Transocean, Inc.
5.250% due 03/15/13

    550      592

Tyco Electronics Group SA
6.000% due 10/01/12

    760      824

Volvo Treasury AB (Þ)
5.950% due 04/01/15

    820      868

Westpac Banking Corp.
2.250% due 11/19/12

    2,000      2,002

XL Capital, Ltd.
5.250% due 09/15/14

    515      535

Series E (ƒ)
6.500% due 12/31/49

    400      304
         
        36,540
         
Loan Agreements - 0.2%        

First Data Corp., Term Loan B1
2.981% due 09/24/14

    232      200

2.999% due 09/24/14

    7      6

3.000% due 09/24/14

    13      11

Ford Motor Company, Term Loan
3.240% due 12/15/13

    59      55

3.260% due 12/15/13

    956      895

Newsday Corp. Fixed Rate Term Loan
10.500% due 07/09/13

    275      292

Supermedia, Inc., Exit Term Loan
11.000% due 12/31/15

    96      49

Texas Competitive Electric Holdings Company, LLC., Term Loan B2
3.731% due 10/10/14

    330      268

3.751% due 10/10/14

    3      3
         
        1,779
         
Mortgage-Backed Securities - 23.7%     

American Home Mortgage Investment Trust (Ê)
Series 2004-3 Class 5A
2.511% due 10/25/34

    925      763

Series 2004-4 Class 4A
2.484% due 02/25/45

    301      236

Asset Securitization Corp.
Series 1997-D5 Class A3
7.177% due 02/14/43

    145      157

 

164   Russell Short Duration Bond Fund

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Banc of America Alternative Loan Trust
Series 2005-3 Class 2A1
5.500% due 04/25/20

    133      120

Banc of America Commercial Mortgage, Inc.
Series 2000-2 Class B
7.378% due 09/15/32

    130      132

Series 2000-2 Class C
7.438% due 09/15/32

    410      415

Series 2003-1 Class SBB (Þ)
5.860% due 03/11/32

    372      408

Series 2003-1 Class SBC (Þ)
5.790% due 03/11/32

    657      719

Series 2003-1 Class SBE (Þ)
6.770% due 03/11/32

    972      1,091

Series 2004-4 Class A3
4.128% due 07/10/42

    25      25

Series 2006-2 Class A4
5.738% due 05/10/45

    155      156

Series 2006-4 Class A4
5.634% due 07/10/46

    920      881

Series 2007-2 Class AAB
5.639% due 04/10/49

    210      212

Banc of America Funding Corp.
Series 2005-D Class A1 (Ê)
3.131% due 05/25/35

    4,899      4,523

Series 2006-2 Class 2A18
5.750% due 03/25/36

    2,015      1,572

Series 2006-A Class 1A1 (Ê)
4.503% due 02/20/36

    258      224

Banc of America Mortgage Securities, Inc.
Series 2004-2 Class 2A1
5.250% due 03/25/34

    94      94

Series 2004-2 Class 5A1
6.500% due 10/25/31

    90      90

Series 2004-I Class 2A2 (Ê)
3.676% due 10/25/34

    369      315

Series 2004-L Class 1A1 (Ê)
3.716% due 01/25/35

    41      37

Series 2004-L Class 2A1 (Ê)
3.307% due 01/25/35

    1,496      1,307

Series 2005-G Class 2A1 (Ê)
4.922% due 08/25/35

    247      207

Bear Stearns Adjustable Rate Mortgage Trust
Series 2003-1 Class 5A1
5.434% due 04/25/33

    269      251

Series 2003-8 Class 2A1 (Ê)
3.553% due 01/25/34

    157      149

Series 2005-6 Class 1A1
3.750% due 08/25/35

    412      289

Series 2007-3 Class 1A1
5.428% due 05/25/47

    120      85

Bear Stearns Alt-A Trust
Series 2005-4 Class 23A1
5.126% due 05/25/35

    689      495

Series 2005-7 Class 22A1
5.275% due 09/25/35

    44      33
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-3 Class 33A1 (Ê)
6.051% due 05/25/36

    613      311

Bear Stearns Asset Backed Securities Trust
Series 2003-AC3 Class A1
4.000% due 07/25/33

    236      219

Bear Stearns Commercial Mortgage Securities
Series 2000-WF1 Class E
8.078% due 02/15/32

    490      489

Series 2001-TOP Class A1
5.060% due 11/15/16

    64      65

Series 2001-TOP Class A2
6.480% due 02/15/35

    254      263

Series 2001-TOP Class A3
5.610% due 11/15/33

    50      52

Series 2004-PWR Class A2
4.254% due 07/11/42

    242      244

Series 2004-PWR Class A3
4.565% due 07/11/42

    540      542

Series 2007-T26 Class A4
5.471% due 01/12/45

    100      100

Bear Stearns Mortgage Funding Trust (Ê)
Series 2007-AR1 Class 2A1
0.301% due 02/25/37

    240      233

Bear Stearns Structured Products, Inc.
Series 2007-R6 Class 1A1
5.618% due 01/26/36

    213      134

Series 2007-R6 Class 2A1
5.666% due 12/26/46

    148      85

Chase Commercial Mortgage Securities Corp.
Series 1999-2 Class B
7.343% due 01/15/32

    34      34

Series 2000-2 Class B
7.782% due 07/15/32

    415      422

Series 2000-3 Class A2
7.319% due 10/15/32

    24      25

Chase Mortgage Finance Corp.
Series 2007-A1 Class 8A1
4.213% due 02/25/37

    598      565

Citigroup Commercial Mortgage Trust
Series 2006-C5 Class A4
5.431% due 10/15/49

    735      713

Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2006-CD3 Class A5
5.617% due 10/15/48

    460      461

Commercial Mortgage Acceptance Corp.
Series 1998-C2 Class E
7.477% due 09/15/30

    681      683

Commercial Mortgage Asset Trust
Series 1999-C2 Class A2
7.546% due 11/17/32

    36      36

Series 1999-C2 Class E
7.640% due 11/17/32

    50      49

 

Russell Short Duration Bond Fund   165

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Commercial Mortgage Pass Through Certificates
Series 2001-J1A Class A2 (Þ)
6.457% due 02/16/34

    133      136

Series 2001-J1A Class B (Þ)
6.614% due 02/15/34

    180      187

Series 2003-LB1 Class A2
4.084% due 06/10/38

    600      602

Series 2006-C7 Class A2
5.690% due 06/10/46

    225      231

Series 2006-C8 Class A4
5.306% due 12/10/46

    400      361

Community Program Loan Trust
Series 1987-A Class A4
4.500% due 10/01/18

    843      847

Countrywide Alternative Loan Trust
Series 2003-J2 Class A1
6.000% due 10/25/33

    151      150

Series 2004-12C Class 1A1
5.000% due 07/25/19

    1,466      1,416

Countrywide Home Loan Mortgage Pass Through Trust
Series 2004-12 Class 1M
3.969% due 08/25/34

    2,264      224

Series 2004-22 Class A3
3.509% due 11/25/34

    200      170

Series 2004-HYB Class 1A1
3.401% due 02/20/35

    358      306

Series 2005-HYB Class 5A1 (Ê)
5.250% due 02/20/36

    736      442

Series 2006-1 Class A2
6.000% due 03/25/36

    1,012      789

Series 2006-21 Class A9
5.750% due 02/25/37

    867      840

Series 2006-HYB Class 1A2
4.414% due 06/20/36

    97      7

Series 2006-HYB Class 3A1A
6.017% due 05/20/36

    549      333

Series 2006-R2 Class AF1 (Ê)(Þ)
0.651% due 07/25/36

    510      385

Series 2007-1 Class A1
6.000% due 03/25/37

    3,875      3,175

Credit Suisse First Boston Mortgage Securities Corp.
Series 1998-C1 Class D
7.170% due 05/17/40

    29      30

Series 2001-CF2 Class A4
6.505% due 02/15/34

    68      71

Series 2001-CF2 Class B
6.718% due 02/15/34

    490      505

Series 2001-CK1 Class A3
6.380% due 12/18/35

    105      107

Series 2001-CK1 Class C
6.730% due 12/18/35

    145      146

Series 2001-SPG Class A2 (Þ)
6.515% due 08/13/18

    20      21

Series 2002-CKN Class C1
6.376% due 04/15/37

    835      843
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2002-CKP Class A3
6.439% due 12/15/35

    565      600

Series 2002-CP3 Class A3
5.603% due 07/15/35

    1,775      1,873

Series 2005-C3 Class A2
4.512% due 07/15/37

    104      104

Series 2005-C4 Class A2
5.017% due 08/15/38

    585      587

Series 2005-C6 Class A4
5.230% due 12/15/40

    10      10

Credit Suisse Mortgage Capital Certificates
Series 2006-C2 Class A3
5.658% due 03/15/39

    100      89

Crown Castle Towers LLC (Þ)
Series 2006-1A Class AFX
5.245% due 11/15/36

    160      168

Series 2006-1A Class D
5.772% due 11/15/36

    200      211

Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2003-4XS Class A6A
4.820% due 10/25/33

    555      514

Series 2007-AR1 Class A3B (Ê)
0.301% due 01/25/47

    100      96

DLJ Commercial Mortgage Corp.
Series 1998-CG1 Class B1
6.910% due 06/10/31

    14      14

Series 2000-CF1 Class A1B
7.620% due 06/10/33

    14      14

Series 2000-CKP Class A1B
7.180% due 11/10/33

    1,276      1,298

Fannie Mae
6.000% due 2011

    21      21

6.500% due 2011

    7      7

5.000% due 2013

    226      233

6.000% due 2013

    100      108

6.000% due 2014

    308      333

5.500% due 2016

    506      543

5.500% due 2017

    770      828

6.000% due 2017

    95      105

7.000% due 2017

    85      94

7.000% due 2024

    2,073      2,237

4.154% due 2033 (Ê)

    53      55

6.000% due 2033

    16      18

3.918% due 2035 (Ê)

    237      246

4.675% due 2035 (Ê)

    2,402      2,458

4.954% due 2035 (Ê)(§)

    14,702      15,371

6.000% due 2036

    328      352

5.500% due 2037

    1,939      2,057

6.000% due 2037

    69      102

6.000% due 2039

    264      283

1.794% due 2041 (Ê)

    508      507

1.744% due 2042 (Ê)

    203      203

30 Year TBA (Ï)
4.500%

    9,215      9,307

5.500%

    4,935      5,231

 

166   Russell Short Duration Bond Fund

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Fannie Mae Grantor Trust
Series 2001-T3 Class A1
7.500% due 11/25/40

    387      438

Series 2001-T4 Class A1

7.500% due 07/25/41

    61      69

Series 2001-T10 Class A1
7.000% due 12/25/41

    91      102

Series 2001-T10 Class A2
7.500% due 12/25/41

    50      57

Series 2002-T19 Class A1
6.500% due 07/25/42

    693      757

Fannie Mae REMICS
Series 2003-16 Class BH
5.000% due 03/25/17

    802      830

Series 2003-24 Class PU
3.500% due 11/25/15

    37      38

Series 2003-63 Class GU
4.000% due 07/25/33

    90      93

Series 2003-75 Class NB
3.250% due 08/25/18

    179      182

Series 2004-70 Class EB
5.000% due 10/25/24

    335      360

Series 2007-39 Class EF (Ê)
0.481% due 05/25/37

    238      234

Series 2007-63 Class FC (Ê)
0.581% due 07/25/37

    2,987      2,950

Series 2007-73 Class A1 (Ê)
0.291% due 07/25/37

    357      342

Series 2009-69 Class MB
4.000% due 09/25/29

    265      253

Series 2009-96 Class DB
4.000% due 11/25/29

    265      245

Fannie Mae Whole Loan
Series 2002-W3 Class A4
6.500% due 11/25/41

    491      536

Series 2003-W2 Class 1A1
6.500% due 07/25/42

    267      291

Federal Home Loan Mortgage Corp. Structured Pass Through Securities
Series 2002-51 Class 1A
6.500% due 09/25/43

    223      243

Series 2003-54 Class 2A
6.500% due 02/25/43

    188      205

Series 2005-63 Class 1A1 (Ê)
1.744% due 02/25/45

    505      471

First Horizon Alternative Mortgage Securities (Ê)
Series 2005-AA7 Class 2A1
5.389% due 09/25/35

    609      442

First Union Commercial Mortgage Securities, Inc.
Series 1997-C2 Class D
7.120% due 11/18/29

    130      140

First Union National Bank Commercial Mortgage
Series 2000-C2 Class A2
7.202% due 10/15/32

    559      570
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2001-C2 Class A2
6.663% due 01/12/43

    798      828

First Union National Bank-Bank of America Commercial Mortgage Trust
Series 2001-C1 Class A2
6.136% due 03/15/33

    91      94

Series 2001-C1 Class C
6.403% due 03/15/33

    320      328

First Union-Lehman Brothers-Bank of America
Series 1998-C2 Class C
6.730% due 11/18/35

    484      495

Series 1998-C2 Class D
6.778% due 11/18/35

    1,175      1,245

Freddie Mac
6.000% due 2011

    53      56

6.000% due 2013

    36      38

5.500% due 2014

    29      31

6.000% due 2014

    44      47

6.000% due 2016

    210      226

6.000% due 2018

    188      203

5.500% due 2029

    496      529

6.000% due 2029

    55      59

9.000% due 2030

    335      378

6.000% due 2031

    137      149

6.000% due 2033

    295      319

4.935% due 2035 (Ê)

    506      529

30 Year TBA (Ï)
5.500%

    1,000      1,060

Freddie Mac REMICS
Series 2003-255 Class PB
5.500% due 08/15/30

    3      3

Series 2003-258 Class NS
3.250% due 09/15/15

    144      145

Series 2003-261 Class JA
3.760% due 03/15/29

    623      638

Series 2003-262 Class GE
4.500% due 04/15/17

    145      150

Series 2003-263 Class AB
4.500% due 06/15/18

    970      1,010

Series 2003-265 Class WT
4.500% due 08/15/18

    810      850

Series 2004-285 Class BA
4.500% due 02/15/20

    449      459

Series 2004-287 Class AL
5.000% due 10/15/24

    690      740

Series 2006-314 Class LF (Ê)
0.531% due 05/15/36

    449      444

Series 2007-333 Class BF (Ê)
0.381% due 07/15/19

    257      253

Series 2007-333 Class FT (Ê)
0.381% due 08/15/19

    623      614

Series 2008-341 Class JB
4.500% due 02/15/23

    360      374

GE Capital Commercial Mortgage Corp.
Series 2000-1 Class A2
6.496% due 01/15/33

    244      250

 

Russell Short Duration Bond Fund   167

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series 2001-1 Class A2
6.531% due 05/15/33

    680      707

Series 2001-1 Class B
6.719% due 05/15/33

    345      358

Series 2001-3 Class A1
5.560% due 06/10/38

    319      325

Series 2001-3 Class A2
6.070% due 06/10/38

    151      159

Series 2002-1A Class A3
6.269% due 12/10/35

    470      500

Series 2004-C2 Class A2
4.119% due 03/10/40

    126      128

Series 2005-C1 Class A2
4.353% due 06/10/48

    159      159

Series 2005-C1 Class A3
4.578% due 06/10/48

    130      131

Ginnie Mae I
6.500% due 2038

    507      544

Ginnie Mae II (Ê)
3.625% due 2027

    41      42

4.000% due 2032

    64      66

GMAC Commercial Mortgage Securities, Inc.
Series 1999-C1 Class D
6.981% due 05/15/33

    40      40

Series 2000-C2 Class B
7.594% due 08/16/33

    580      586

Series 2001-C1 Class A2
6.465% due 04/15/34

    23      24

Series 2001-C1 Class B
6.670% due 04/15/34

    535      546

Series 2004-C3 Class A4
4.547% due 12/10/41

    645      654

GMAC Mortgage Corp. Loan Trust (Ê)
Series 2005-AR2 Class 4A
5.167% due 05/25/35

    85      72

Government National Mortgage Association
Series 2006-67 Class A
3.947% due 11/16/30

    792      818

Series 2007-4 Class A
4.206% due 06/16/29

    927      959

Greenpoint Mortgage Funding Trust (Ê)
Series 2006-AR8 Class 1A1A
0.311% due 01/25/47

    322      280

Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.444% due 03/10/39

    100      93

GSMPS Mortgage Loan Trust (Þ)
Series 2005-RP1 Class 1A3
8.000% due 01/25/35

    330      306

Series 2005-RP1 Class 1A4
8.500% due 01/25/35

    223      207

Series 2006-RP1 Class 1A2
7.500% due 01/25/36

    277      248

Series 2006-RP1 Class 1A3
8.000% due 01/25/36

    52      48
     Principal
Amount ($)
or Shares		      Market
Value
$

GSR Mortgage Loan Trust
Series 2004-7 Class 1A1
3.726% due 06/25/34

    327      290

Series 2005-AR6 Class 2A1 (Ê)
2.955% due 09/25/35

    497      459

Series 2006-3F Class 2A3
5.750% due 03/25/36

    1,185      1,030

Series 2007-AR1 Class 1A1
3.713% due 03/25/37

    4,591      3,148

Harborview Mortgage Loan Trust
Series 2005-4 Class 3A1
4.956% due 07/19/35

    179      129

Series 2006-12 Class 2A11 (Ê)
0.319% due 01/19/38

    238      235

Indymac Index Mortgage Loan Trust (Ê)
Series 2006-AR1 Class 1A1A
0.321% due 11/25/46

    119      116

JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2001-CIB Class A2
6.044% due 11/15/35

    310      316

Series 2001-CIB Class C
6.633% due 03/15/33

    200      204

Series 2001-CIB Class D
6.751% due 03/15/33

    345      352

Series 2002-C1 Class A3
5.376% due 07/12/37

    195      204

Series 2002-C2 Class A1
4.326% due 12/12/34

    317      323

Series 2003-C1 Class A2
4.985% due 01/12/37

    310      319

Series 2004-CBX Class A3
4.184% due 01/12/37

    23      23

Series 2005-CB1 Class A2
5.016% due 08/12/37

    125      125

Series 2006-CB1 Class A4
5.814% due 06/12/43

    165      166

Series 2007-LD1 Class A4
5.882% due 02/15/51

    100      94

Series 2009-IWS Class A1 (Þ)
4.314% due 12/05/19

    562      566

Series 2009-IWS Class A2 (Þ)
5.633% due 12/05/27

    285      294

JPMorgan Commercial Mortgage Finance Corp.
Series 2000-C10 Class B
7.548% due 08/15/32

    300      300

JPMorgan Mortgage Trust
Series 2005-A1 Class 6T1 (Ê)
5.017% due 02/25/35

    42      41

Series 2005-A4 Class 1A1
5.379% due 07/25/35

    297      269

Series 2005-A8 Class 1A1
5.400% due 11/25/35

    590      528

Series 2006-A6 Class 1A2
5.982% due 10/25/36

    89      76

 

168   Russell Short Duration Bond Fund

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

LB Commercial Conduit Mortgage Trust
Series 1998-C1 Class E
7.000% due 02/18/30

    525      573

Series 1999-C1 Class B
6.930% due 06/15/31

    15      15

Series 1999-C1 Class C
7.020% due 06/15/31

    385      385

Series 1999-C1 Class D
7.020% due 06/15/31

    1,210      1,208

LB-UBS Commercial Mortgage Trust
Series 2000-C3 Class B
7.950% due 03/15/32

    180      180

Series 2000-C4 Class A2
7.370% due 08/15/26

    400      405

Series 2000-C4 Class B
7.480% due 07/15/32

    355      361

Series 2000-C4 Class C
7.610% due 07/15/32

    95      96

Series 2001-C3 Class B
6.512% due 06/15/36

    175      179

Series 2003-C7 Class A4
4.931% due 09/15/35

    790      815

Series 2004-C2 Class A3
3.973% due 03/15/29

    300      297

Series 2004-C4 Class A2
4.567% due 06/15/29

    54      54

Series 2004-C7 Class A5
4.628% due 10/15/29

    232      232

Lehman Mortgage Trust
Series 2006-1 Class 3A3
5.500% due 02/25/36

    207      168

Master Specialized Loan Trust (Þ)
Series 2005-2 Class A2
5.150% due 07/25/35

    142      125

Mastr Adjustable Rate Mortgages Trust
Series 2005-1 Class B1 (Ê)
3.838% due 03/25/35

    330      42

Mastr Reperforming Loan Trust
Series 2005-1 Class 1A3 (Å)
7.000% due 08/25/34

    230      216

Series 2005-1 Class 1A5 (Þ)
8.000% due 08/25/34

    235      224

Series 2005-2 Class 1A4 (Þ)
8.000% due 05/25/35

    404      383

Mellon Residential Funding Corp. (Ê)
Series 2000-TBC Class A1
0.712% due 06/15/30

    612      515

Merrill Lynch Mortgage Investors, Inc.
Series 2005-A8 Class A1B1
5.250% due 08/25/36

    12      11

Series 2005-A10 Class A (Ê)
0.441% due 02/25/36

    57      39

Merrill Lynch Mortgage Trust
Series 2005-CIP Class A2
4.960% due 07/12/38

    345      354

Series 2005-CIP Class A3A
4.949% due 07/12/38

    135      135
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-C1 Class A1
5.528% due 05/12/39

    441      447

Series 2006-C1 Class A4
5.656% due 05/12/39

    130      133

Series 2008-C1 Class A4
5.690% due 02/12/51

    325      295

Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-6 Class A4
5.485% due 03/12/51

    200      166

MLCC Mortgage Investors, Inc.
Series 2005-1 Class 2A1
3.759% due 04/25/35

    367      328

Series 2005-1 Class 2A2
3.759% due 04/25/35

    787      697

Series 2005-3 Class 5A (Ê)
0.481% due 11/25/35

    105      88

Morgan Stanley Capital I
Series 2004-HQ3 Class A2
4.050% due 01/13/41

    179      180

Series 2004-IQ8 Class A3
4.500% due 06/15/40

    28      29

Series 2005-HQ6 Class A1
4.646% due 08/13/42

    456      457

Morgan Stanley Dean Witter Capital I
Series 2001-DFM Class A (Þ)
5.996% due 03/14/11

    12      13

Series 2001-IQA Class A3
5.720% due 12/18/32

    75      76

Series 2001-TOP Class B
6.810% due 02/15/33

    510      519

Series 2001-TOP Class C
6.790% due 07/15/33

    335      314

Series 2001-TOP Class E (Þ)
7.363% due 02/15/33

    55      52

Morgan Stanley Mortgage Loan Trust
Series 2006-2 Class 6A
6.500% due 02/25/36

    448      340

Nomura Asset Acceptance Corp.
Series 2005-WF1 Class 2A2
4.786% due 03/25/35

    203      188

Prime Mortgage Trust (Ê)
Series 2004-CL1 Class 1A2
0.631% due 02/25/34

    95      86

Series 2004-CL1 Class 2A2
0.631% due 02/25/19

    15      14

Residential Accredit Loans, Inc.
Series 2005-QS1 Class 2A1
6.000% due 09/25/35

    337      249

Residential Asset Securitization Trust
Series 2005-A10 Class A3
5.500% due 09/25/35

    999      826

Residential Funding Mortgage Securities I
Series 2006-SA3 Class 3A1
6.037% due 09/25/36

    405      298

 

Russell Short Duration Bond Fund   169

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Salomon Brothers Mortgage Securities VII, Inc.
Series 2000-C3 Class B
6.758% due 12/18/33

    75      76

Series 2001-C2 Class C
6.842% due 11/13/36

    195      203

Series 2002-KEY Class C
5.045% due 03/18/36

    70      69

Series 2003-UP2 Class A1
4.000% due 12/25/18

    348      348

SBA CMBS Trust (Þ)
Series 2006-1A Class B
5.451% due 11/15/36

    95      98

Structured Asset Mortgage Investments, Inc. (Ê)
Series 2002-AR3 Class A1
0.893% due 09/19/32

    23      20

Structured Asset Securities Corp.
Series 2001-21A Class 1A1 (Ê)
2.595% due 01/25/32

    17      16

Series 2005-6 Class B2
5.316% due 05/25/35

    178      18

Suntrust Adjustable Rate Mortgage Loan Trust (Ê)
Series 2007-2 Class 3A3
5.689% due 04/25/37

    9,157      7,325

Thornburg Mortgage Securities Trust (Ê)
Series 2006-6 Class A1
0.341% due 11/25/46

    375      368

Wachovia Bank Commercial Mortgage Trust
Series 2003-C5 Class B
4.107% due 06/15/35

    45      42

Series 2004-C14 Class A2
4.368% due 08/15/41

    778      777

Series 2005-C20 Class A5
5.087% due 07/15/42

    35      35

Series 2006-C28 Class A2
5.500% due 10/15/48

    15      15

Series 2007-C31 Class A4
5.509% due 04/15/47

    100      83

Washington Mutual Mortgage Pass Through Certificates
Series 2002-AR6 Class A (Ê)
1.881% due 06/25/42

    85      66

Series 2002-AR9 Class 1A (Ê)
1.881% due 08/25/42

    203      151

Series 2003-AR7 Class A7 (Ê)
2.850% due 08/25/33

    240      226

Series 2004-AR1 Class A2A (Ê)
0.620% due 11/25/34

    623      427

Series 2005-AR1 Class A1A1 (Ê)
0.521% due 10/25/45

    152      109

Series 2006-AR1 Class 1A4
5.605% due 11/25/36

    130      98

Series 2006-AR1 Class 2A (Ê)
3.594% due 09/25/46

    509      328

Series 2006-AR8 Class 1A5
5.845% due 08/25/46

    1,398      304
     Principal
Amount ($)
or Shares		      Market
Value
$

Series 2006-AR8 Class 2A3 (Ê)
6.110% due 08/25/36

    29      6

Series 2007-HY3 Class 4A1
5.313% due 03/25/37

    1,058      886

Wells Fargo Mortgage Backed Securities Trust
Series 2004-E Class A2 (Ê)
4.500% due 05/25/34

    581      578

Series 2004-I Class 1A1
3.421% due 07/25/34

    305      298

Series 2004-BB Class A2 (Ê)
2.906% due 01/25/35

    272      247

Series 2004-BB Class A4 (Ê)
2.906% due 01/25/35

    792      771

Series 2004-CC Class A1 (Ê)
4.940% due 01/25/35

    438      411

Series 2004-EE Class 3A1 (Ê)
3.945% due 12/25/34

    99      99

Series 2005-9 Class 1A1
4.750% due 10/25/35

    934      926

Series 2005-17 Class 1A1
5.500% due 01/25/36

    472      443

Series 2005-AR1 Class 2A1
3.177% due 10/25/35

    1,981      1,733

Series 2005-AR2 Class 2A1 (Ê)
3.741% due 03/25/35

    463      423

Series 2005-AR2 Class 2A2 (Ê)
3.741% due 03/25/35

    470      424

Series 2005-AR4 Class 2A2
4.077% due 04/25/35

    233      216

Series 2005-AR8 Class 2A1
3.305% due 06/25/35

    113      105

Series 2006-3 Class A1
5.500% due 03/25/36

    1,351      1,146

Series 2006-4 Class 2A3
5.750% due 04/25/36

    520      192

Series 2006-AR1 Class 2A2
5.706% due 11/25/36

    552      159

Series 2006-AR1 Class 5A1 (Ê)
5.587% due 07/25/36

    363      298

Series 2006-AR1 Class A1 (Ê)
5.316% due 10/25/36

    3,177      2,488

Series 2006-AR2 Class 2A1
4.950% due 03/25/36

    777      688

Series 2006-AR4 Class 1A1 (Ê)
5.875% due 04/25/36

    126      109

Series 2006-AR4 Class 2A1 (Ê)
5.771% due 04/25/36

    877      762

Series 2006-AR5 Class 2A1 (Ê)
5.541% due 04/25/36

    761      621

Series 2006-AR6 Class 7A1 (Ê)
5.112% due 03/25/36

    70      63

Series 2007-14 Class 1A1
6.000% due 10/25/37

    981      888
         
        158,300
         

 

170   Russell Short Duration Bond Fund

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Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Municipal Bonds - 0.8%        

Massachusetts Educational Financing Authority (Ê)
Series 2008-1 Class A1
1.199% due 04/25/38

      1,609      1,617

South Carolina Student Loan Corp. (Ê)
Series 2008-1 Class A1
0.756% due 09/02/14

      73      73

Series 2008-1 Class A4
1.256% due 09/03/24

      400      407

South Carolina Student Loan Corp. Revenue Bonds (Ê)
Series 2008-1 Class A2
0.806% due 03/01/18

      600      603

Series 2008-1 Class A3
1.006% due 03/02/20

      700      704

State of Illinois General Obligation Unlimited
2.766% due 01/01/12

      2,000      2,021
         
        5,425
         
Non-US Bonds - 0.8%        

Asian Development Bank
6.000% due 01/20/15

    AUD  525      468

Brazil Notas do Tesouro Nacional Serie F
Series NTNF
10.000% due 01/01/17

    BRL  2,500      1,155

Cemex SAB de CV
4.750% due 03/05/14

    EUR  100      116

Fortis Bank Nederland Holding NV
3.000% due 04/17/12

    EUR  100      142

France Government Bond
3.750% due 10/25/19

    EUR  125      177

German Treasury Bills
5.000% due 01/04/12

    EUR  140      208

Kreditanstalt fuer Wiederaufbau
6.000% due 03/28/17

    AUD  280      244

Mexican Bonos
Series M
8.000% due 12/17/15

    MXN  9,500      749

New South Wales Treasury Corp.
5.250% due 05/01/13

    AUD  140      124

Societe Financement de l’Economie Francaise
2.125% due 05/20/12

    EUR  300      422

United Kingdom Gilt
4.500% due 03/07/13

    GBP  590      1,009

5.000% due 09/07/14

    GBP  475      832
         
        5,646
         
United States Government
Agencies - 2.2%		     

Fannie Mae
6.250% due 02/01/11

      900      950

5.250% due 08/01/12

      3,025      3,285

Federal Home Loan Mortgage Corp.
1.125% due 06/01/11

      1,500      1,510
     Principal
Amount ($)
or Shares		      Market
Value
$

2.125% due 09/21/12

    825      842

2.875% due 02/09/15

    2,255      2,277

Federal National Mortgage Association
2.000% due 01/01/12 (§)

    210      214

Zero Coupon due 10/09/19

    8,005      4,661

Financing Corp.
Principal Only STRIP
Series 13
Zero Coupon due 06/27/13

    830      761

Freddie Mac
2.125% due 03/23/12

    325      332
         
        14,832
         
United States Government
Treasuries - 6.5%		        

United States Treasury Inflation Indexed Bonds
2.000% due 04/15/12

    107      112

1.375% due 07/15/18

    1,103      1,125

1.375% due 01/15/20

   1,435      1,447

United States Treasury Notes
1.000% due 07/31/11

    7,200      7,250

1.000% due 08/31/11

    15,500      15,599

0.750% due 11/30/11

    3,210      3,211

1.000% due 12/31/11

    1,735      1,742

1.375% due 01/15/13

    7,905      7,906

2.625% due 12/31/14

    2,360      2,395

2.250% due 01/31/15

    1,870      1,861

3.375% due 11/15/19

    520      510
         
        43,158
         

Total Long-Term Investments

(cost $449,427)

         460,138
         
Common Stocks - 0.0%        
Consumer Discretionary - 0.0%     

SuperMedia, Inc. (Æ)

    443      16
         

Total Common Stocks

(cost $13)

         16
         
Preferred Stocks - 0.3%        
Financial Services - 0.3%        

DG Funding Trust (Å)

    219      1,940

Federal Home Loan Mortgage Corp.

    19,825      21

Federal National Mortgage Association

    20,825      22

Wells Fargo & Co.

    —      282
         

Total Preferred Stocks

(cost $3,312)

         2,265
         
Short-Term Investments - 10.6%     

American Express Centurion Bank
Series BKNT
5.200% due 11/26/10

    500      518

American Express Credit Corp.
0.409% due 12/02/10 (Ê)

    500      499

 

Russell Short Duration Bond Fund   171

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Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Series MTNB (Ê)
0.381% due 10/04/10

    500      499

American International Group, Inc.
4.700% due 10/01/10

    1,950      1,943

Bank of Scotland PLC (Ê)(Þ)
0.317% due 12/08/10

    600      596

Capmark Financial Group, Inc.
3.114% due 05/10/10

    570      165

Citigroup, Inc. (Ê)
0.421% due 05/18/10

    1,900      1,899

Comcast Cable Communications LLC
6.750% due 01/30/11

    400      422

Credit Agricole SA (Ê)(Þ)
0.304% due 05/28/10

    300      300

Discover Financial Services (Ê)
Series WI
0.784% due 06/11/10

    1,060      1,052

Fannie Mae
4.500% due 07/01/10

    228      232

6.000% due 11/01/10

    5      5

6.500% due 12/01/10

    10      10

Federal National Mortgage Association Discount Notes (ç)
Zero Coupon due 02/01/10

    2,000      2,000

Zero Coupon due 02/04/10

    1,000      1,000

Ford Credit Auto Owner Trust (Ê)
Series 2008-B Class A2
1.433% due 12/15/10

    30      30

Fortune Brands, Inc.
5.125% due 01/15/11

    350      362

Freddie Mac
4.000% due 08/01/10

    175      177

General Electric Capital Corp. (Ê)
Series GMTn
0.284% due 03/12/10

    425      425

KeyBank NA (Ê)
Series BKNT
2.507% due 06/02/10

    300      301

Keycorp (Ê)
0.915% due 11/22/10

    1,100      1,433

Lehman Brothers Holdings, Inc. (Ø)(Æ)
1.000% due 03/05/10

    950      231

2.951% due 05/25/10

    800      165

Lincoln National Corp. (Ê)
0.334% due 03/12/10

    320      320

Mandalay Resort Group
9.375% due 02/15/10

    150      150

Marsh & McLennan Cos., Inc.
5.150% due 09/15/10

    840      860

Martin Marietta Materials, Inc. (Ê)
0.399% due 04/30/10

    1,300      1,295

Masco Corp. (Ê)
0.554% due 03/12/10

    390      389

Merrill Lynch & Co., Inc.
Series MTNB
4.500% due 11/04/10

    295      303
     Principal
Amount ($)
or Shares		      Market
Value
$

Series MTNC
4.250% due 02/08/10

    515      515

Morgan Stanley (Ê)
2.350% due 05/14/10

    400      402

Nationwide Life Global Funding I (Ê)(Þ)
0.470% due 05/19/10

    1,800      1,793

0.661% due 08/27/10

    1,570      1,570

0.354% due 12/14/10

    780      770

Nuveen Investments, Inc.
5.000% due 09/15/10

    900      896

Power Contract Financing LLC (Þ)
6.256% due 02/01/10

    36      36

Protective Life Secured Trusts (Ê)
0.391% due 11/09/10

    1,600      1,595

Russell U.S. Cash Management Fund (£)

    32,213,704      32,214

SLM Corp.
0.409% due 07/26/10 (Ê)

    100      98

Series MTNA
4.500% due 07/26/10

    1,075      1,081

Sovereign Bancorp, Inc.
0.479% due 03/23/10 (Ê)

    200      200

4.800% due 09/01/10

    160      164

United States Treasury Bills (ç)(ž)(§)
0.020% due 02/11/10

    10,800      10,800

0.061% due 03/04/10

    429      429

0.197% due 04/01/10

    202      202

United Technologies Corp.
4.375% due 05/01/10

    425      429

7.125% due 11/15/10

    270      284
         

Total Short-Term Investments

(cost $71,728)

         71,059
         
Repurchase Agreements - 19.5%     

Agreement with Bank of America Securities LLC and State Street Bank (Tri-Party) of $35,900 dated January 29, 2010, at 0.11% to be repurchased at $35,900 on February 1, 2010 collateralized by: $35,900 par various United States Treasury Obligations, valued at $36,664.

    35,900      35,900

Agreement with Citigroup Global Markets, Inc. and State Street Bank (Tri-Party) of $35,900 dated January 29, 2010, at 0.10% to be repurchased at $35,900 on February 1, 2010 collateralized by: $35,900 par various United States Treasury Obligations, valued at $36,655.

    35,900      35,900

Agreement with JPMorgan Securities, Inc. and State Street Bank (Tri-Party) of $22,600 dated January 29, 2010, at 0.11% to be repurchased at $22,600 on February 1, 2010 collateralized by: $22,600 par various United States Treasury Obligations, valued at $22,867.

    22,600      22,600

 

172   Russell Short Duration Bond Fund

Table of Contents

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Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       

Agreement with Morgan Stanley and Co., Inc. and State Street Bank (Tri-Party) of $35,900 dated January 29, 2010, at 0.11% to be repurchased at $35,900 on February 1, 2010 collateralized by: $35,900 par various United States Treasury Obligations, valued at $37,135.

    35,900      35,900
         

Total Repurchase Agreements

(cost $130,300)

         130,300
         

Total Investments - 99.3%

(identified cost $654,780)

         663,778

Other Assets and Liabilities,

Net - 0.7%

         4,481
         
Net Assets - 100.0%         668,259
         

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Short Duration Bond Fund   173

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Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Futures Contracts    Number of
Contracts		      Notional
Amount		      Expiration
Date		      Unrealized
Appreciation
(Depreciation)
$
                   
Long Positions                    

Euribor Futures (Germany)

    9      EUR   2,235      03/10      32

Euro-Bobl Futures (Germany)

    129      EUR   15,126      03/10      130

Euro-Bund Futures (Germany)

    3      EUR   370      03/10      2

Eurodollar Futures (CME)

    274      USD   68,301      03/10      94

Eurodollar Futures (CME)

    605      USD   150,638      06/10      348

Eurodollar Futures (CME)

    22      USD   5,465      09/10      19

Eurodollar Futures (CME)

    27      USD   6,683      12/10      35

Eurodollar Futures (CME)

    15      USD   3,699      03/11      1

Eurodollar Futures (CME)

    15      USD   3,684      06/11      1

Eurodollar Futures (CME)

    15      USD   3,671      09/11      —

Eurodollar Futures (CME)

    15      USD   3,659      12/11      —

Three Month Short Sterling Interest Rate Futures (UK)

    3      GBP   373      03/10      8

Three Month Short Sterling Interest Rate Futures (UK)

    3      GBP   372      06/10      9

United States Treasury Bonds

    11      USD   1,307      03/10      (19)

United States Treasury 2 Year Notes

    307      USD   66,911      03/10      164
Short Positions                    

Euro-Bund Futures (Germany)

    4      EUR   —      02/10      2

United States Treasury 2 Year Notes

    222      USD   48,386      03/10      (79)

United States Treasury 5 Year Notes

    56      USD   6,522      03/10      10

United States Treasury 10 Year Notes

    152      USD   17,960      03/10      (97)
                     

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                  660
                     

 

See accompanying notes which are an integral part of the Quarterly Report.

 

174   Russell Short Duration Bond Fund

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Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except contracts)

 

Options Written

(Number of Contracts)

    Notional
Amount		      Market
Value
$		  
       
Swaptions        

(Fund Pays/Fund Receives)

USD 3.250%/USD Three Month LIBOR

Apr 2010 0.00 Call (4)

    2,200      (4 ) 

USD 2.750%/USD Three Month LIBOR

Apr 2010 0.00 Call (1)

    200      —   

USD 3.500%/USD Three Month LIBOR

Jun 2010 0.00 Call (1)

    8,300      (71 ) 

USD Three Month LIBOR/USD 5.500%

Aug 2010 0.00 Put (2)

    1,700      (2 ) 

USD Three Month LIBOR/USD 6.000%

Aug 2010 0.00 Put (6)

    36,900      (39 ) 

USD Three Month LIBOR/USD 4.250%

Apr 2010 0.00 Put (8)

    20,000      (89 ) 

USD Three Month LIBOR/USD 4.000%

Apr 2010 0.00 Put (1)

    100      —   
           

Total Liability for Options Written
(premiums received $594)

         (205 ) 
           

 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Short Duration Bond Fund   175

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts                                                  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                             

Barclays Bank PLC

      USD      245      BRL      438      02/02/10      (13 ) 

Barclays Bank PLC

      USD      1,726      EUR      1,199      02/10/10      (64 ) 

Barclays Bank PLC

      USD      606      GBP      375      02/10/10      (6 ) 

Barclays Bank PLC

      USD      93      MYR      321      02/12/10      1   

Barclays Bank PLC

      USD      96      MYR      321      04/30/10      (2 ) 

Barclays Bank PLC

      BRL      341      USD      195      02/02/10      14   

Barclays Bank PLC

      EUR      235      USD      331      02/10/10      6   

Barclays Bank PLC

      GBP      1,725      USD      2,757      02/10/10      (1 ) 

Barclays Bank PLC

      JPY      12,765      USD      140      02/10/10      (1 ) 

Barclays Bank PLC

      MYR      321      USD      96      02/12/10      2   

BNP Paribas

      EUR      2,264      USD      3,251      03/23/10      112   

Citibank

      USD      1,226      KRW      1,446,381      02/11/10      19   

Citibank

      USD      96      TWD      3,009      04/29/10      (1 ) 

Citibank

      GBP      271      USD      437      03/25/10      4   

Deutsche Bank

      USD      275      CAD      284      02/22/10      (10 ) 

Deutsche Bank

      USD      163      KRW      193,390      02/11/10      4   

Deutsche Bank

      GBP      243      USD      389      03/25/10      1   

Goldman Sachs

      USD      1,353      BRL      2,537      02/02/10      (7 ) 

Goldman Sachs

      USD      1,449      BRL      2,537      04/05/10      (118 ) 

Goldman Sachs

      BRL      2,537      USD      1,467      02/02/10      121   

HSBC

      USD      72      BRL      125      02/02/10      (6 ) 

HSBC

      USD      24      GBP      15      02/10/10      —   

HSBC

      USD      234      GBP      145      02/10/10      (3 ) 

HSBC

      BRL      125      USD      67      02/02/10      —   

HSBC

      EUR      3      USD      3      02/01/10      (1 ) 

JP Morgan

      USD      213      AUD      230      02/10/10      (9 ) 

JP Morgan

      USD      911      AUD      1,000      02/10/10      (27 ) 

JP Morgan

      USD      135      BRL      241      02/02/10      (7 ) 

JP Morgan

      USD      1,274      BRL      2,285      02/02/10      (61 ) 

JP Morgan

      USD      320      CAD      330      02/10/10      (12 ) 

JP Morgan

      USD      425      CAD      441      02/10/10      (13 ) 

JP Morgan

      USD      165      EUR      115      02/10/10      (6 ) 

JP Morgan

      USD      187      GBP      115      02/10/10      (4 ) 

JP Morgan

      USD      275      GBP      170      02/10/10      (3 ) 

JP Morgan

      USD      372      GBP      230      02/10/10      (5 ) 

JP Morgan

      USD      250      KRW      280,200      02/11/10      (9 ) 

JP Morgan

      USD      824      NOK      4,701      02/10/10      (31 ) 

JP Morgan

      USD      210      SGD      291      02/11/10      (3 ) 

JP Morgan

      BRL      385      USD      220      02/02/10      16   

JP Morgan

      BRL      2,285      USD      1,219      02/02/10      7   

JP Morgan

      CAD      357      USD      345      02/10/10      11   

JP Morgan

      EUR      305      USD      431      02/10/10      8   

JP Morgan

      EUR      344      USD      484      03/11/10      7   

JP Morgan

      EUR      161      USD      228      04/26/10      5   

JP Morgan

      GBP      115      USD      188      02/10/10      4   

JP Morgan

      GBP      190      USD      308      02/10/10      4   

JP Morgan

      GBP      230      USD      374      02/10/10      7   

JP Morgan

      JPY      27,854      USD      300      02/10/10      (9 ) 

Morgan Stanley

      USD      250      MXN      3,215      04/22/10      (6 ) 

Morgan Stanley

      USD      250      PHP      11,525      04/16/10      (4 ) 

Morgan Stanley

      USD      250      SGD      347      02/11/10      (3 ) 

Royal Bank of Canada

      USD      73      BRL      127      02/02/10      (6 ) 

Royal Bank of Canada

      BRL      127      USD      68      02/02/10      —   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

176   Russell Short Duration Bond Fund

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts                                  

Counterparty

      Amount Sold      Amount Bought      Settlement
Date		      Unrealized
Appreciation
(Depreciation)
$		  
                             

Royal Bank of Scotland

      USD      129      AUD      141      02/26/10      (4 ) 

Royal Bank of Scotland

      USD      298      CAD      308      02/10/10      (10 ) 

Royal Bank of Scotland

      USD      205      EUR      145      02/10/10      (4 ) 

Royal Bank of Scotland

      USD      266      GBP      165      02/01/10      (2 ) 

Royal Bank of Scotland

      EUR      1,047      USD      1,554      02/18/10      103   

Royal Bank of Scotland

      GBP      160      USD      259      02/10/10      3   

Royal Bank of Scotland

      GBP      165      USD      268      02/01/10      4   

Royal Bank of Scotland

      GBP      255      USD      408      02/10/10      —   

Royal Bank of Scotland

      JPY      52,405      USD      577      02/16/10      (4 ) 

UBS

      USD      372      CNY      2,534      03/29/10      (1 ) 

UBS

      USD      231      EUR      165      02/01/10      (2 ) 

UBS

      USD      225      MXN      3,016      02/16/10      5   

UBS

      USD      245      MXN      3,135      02/10/10      (6 ) 

UBS

      EUR      165      USD      231      02/01/10      2   

UBS

      EUR      140      USD      200      02/10/10      6   

UBS

      EUR      215      USD      303      02/10/10      5   

UBS

      EUR      215      USD      299      02/10/10      1   

UBS

      GBP      375      USD      608      02/10/10      9   

UBS

      GBP      376      USD      602      03/25/10      1   

UBS

      JPY      21,157      USD      230      02/10/10      (4 ) 
                                 

Total Unrealized Appreciation (Depreciation) on Open Futures Contracts

                     4   
                                 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Short Duration Bond Fund   177

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Russell Investment Company

Russell Short Duration Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Interest Rate Swap Contracts                          

Counterparty

    Notional
Amount		    Fund Receives   

Fund Pays

    Termination
Date		    Market
Value
$		  
                

Barclays Bank PLC

    BRL   6,900    13.845%    Brazil Interbank Deposit Rate    01/02/12    230   

BNP Paribas

    EUR   1,200    2.090%    Consumer Price Index (France)    10/15/10    57   

Merrill Lynch

    BRL   100    11.980%    Brazil Interbank Deposit Rate    01/02/12    1   

Merrill Lynch

    BRL   100    14.765%    Brazil Interbank Deposit Rate    01/02/12    6   

UBS

    BRL   800    12.540%    Brazil Interbank Deposit Rate    01/02/12    15   

UBS

    BRL   1,000    10.575%    Brazil Interbank Deposit Rate    01/02/12    (23 ) 

UBS

    AUD   1,600    6.000%    Brazil Interbank Deposit Rate    09/15/12    19   
   EUR   9,100    3.000%    Six Month EURIBOR    06/16/15    105   
                    

Total Market Value of Open Interest Rate Swap Contracts Premiums Paid (Received) - $3

          410   
                    

 

Credit Default Swap Contracts                     
Corporate Issues  

Reference
Entity

   

Counterparty

    Implied
Credit
Spread		    Notional
Amount		    Fund (Pays)/
Receives
Fixed Rate		     Termination
Date		    Market
Value
$		  
                   

American International Group

    Goldman Sachs    5.530%    USD    300    1.380%      06/20/13    (37 ) 

American International Group

    Royal Bank of Scotland    5.530%    USD    200    1.360%      06/20/13    (25 ) 

Ford Motor Credit Co.

    Barclays Bank PLC    3.760%    USD    2,000    6.150%      09/20/12    117   

Gaz Capital for Gazprom

    Morgan Stanley    2.142%    USD    1,400    0.860%      11/20/11    (32 ) 

GE Capital Corp.

    Barclays Bank PLC    1.950%    USD    700    1.670%      03/20/13    (6 ) 

GE Capital Corp.

    BNP Paribas    1.950%    USD    100    1.250%      03/20/13    (2 ) 

GE Capital Corp.

    BNP Paribas    1.950%    USD    1,200    1.300%      03/20/13    (23 ) 

GE Capital Corp.

    Citibank    1.990%    USD    200    4.200%      12/20/13    16   

GE Capital Corp.

    Citibank    1.990%    USD    200    4.325%      12/20/13    17   

GE Capital Corp.

    Deutsche Bank    1.990%    USD    200    4.230%      12/20/13    16   

GE Capital Corp.

    Deutsche Bank    1.990%    USD    100    4.900%      12/20/13    10   

Procter & Gamble

    Pershing LLC 1st Republic P.B. CNS    0.397%    USD    2,800    (1.000% )    06/20/14    71   

Republic of Brazil

    Deutsche Bank    0.580%    USD    1,000    (1.000% )    12/20/10    4   

Republic of Brazil

    Goldman Sachs    0.580%    USD    1,000    (1.000% )    12/20/10    4   

Republic of Brazil

    Goldman Sachs    0.580%    USD    500    (1.000% )    12/20/10    2   

Republic of Brazil

    Goldman Sachs    0.820%    USD    1,000    (1.000% )    12/20/10    2   

Republic of Brazil

    Goldman Sachs    0.820%    USD    500    (1.000% )    12/20/10    1   

Republic of Brazil

    JP Morgan    0.580%    USD    1,000    (1.000% )    12/20/10    4   

Republic of Brazil

    UBS    0.820%    USD    1,000    (1.000% )    12/20/10    2   

Republic of Korea

    Citibank    0.460%    USD    1,000    0.520%      12/20/10    1   

Republic of Korea

    UBS    0.460%    USD    1,000    0.550%      12/20/10    1   

SLM Corp.

    BNP Paribas    4.782%    USD    100    5.050%      03/20/13    1   

United Mexican States

    Deutsche Bank    0.788%    USD    1,000    (1.000% )    12/20/10    2   

United Mexican States

    Goldman Sachs    0.788%    USD    1,000    (1.000% )    12/20/10    1   

United Mexican States

    HSBC    0.788%    USD    500    (1.000% )    12/20/10    1   

United Mexican States

    JP Morgan    0.788%    USD    1,000    (1.000% )    12/20/10    1   
                       

Total Market Value of Open Corporate Issue Credit Default Swap Contracts Premiums Paid (Received) - $50

         149   
                       

 

Credit Indices            

Reference
Entity

   

Counterparty

    Notional
Amount		    Fund (Pays)/
Receives
Fixed Rate		    Termination
Date		    Market
Value
$
                 

Dow Jones CDX Index

    Credit Suisse First Boston    USD    800    5.000%    12/20/14    80

Dow Jones CDX Index

    Deutsche Bank    USD    772    0.708%    12/20/12    13

Dow Jones CDX Index

    Dow Jones CDX Index    USD    96    0.548%    12/20/17    1

Dow Jones CDX Index

    Dow Jones CDX Index    USD    96    0.553%    12/20/17    1

Dow Jones CDX Index

    UBS    USD    400    5.000%    12/20/14    40
                   

Total Market Value of Open Credit Index Credit Default Swap Contracts Premiums Paid (Received) - $120

          135
                   

Total Market Value of Open Credit Default Swap Contracts Premiums Paid (Received) - $170

          284
                   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

178   Russell Short Duration Bond Fund

Table of Contents

Russell Investment Company

Russell Short Duration Bond Fund

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

Amounts in thousands

 

       Market Value  
Portfolio Summary      Level 1      Level 2      Level 3      Total  
                 

Long-Term Investments

                  

Asset-Backed Securities

      $ —      $ 71,462       $ 548      $ 72,010   

Corporate Bonds and Notes

             122,448         —        122,448   

International Debt

        —        35,670         870        36,540   

Loan Agreements

        —        1,779         —        1,779   

Mortgage-Backed Securities

        —        158,300         —        158,300   

Municipal Bonds

        —        5,425         —        5,425   

Non-US Bonds

        —        5,646         —        5,646   

United States Government Agencies

        —        14,832         —        14,832   

United States Government Treasuries

        —        43,158         —        43,158   

Common Stocks

        16        —         —        16   

Preferred Stocks

        325        —         1,940        2,265   

Short-Term Investments

        —        71,059         —        71,059   

Repurchase Agreements

        —        130,300         —        130,300   
                                     

Total Investments

        341        660,079         3,358        663,778   
                                     

Other Financial Instruments

                  

Futures Contracts

        660        —         —        660   

Options Written

        —        (205 )       —        (205 ) 

Foreign Currency Exchange Contracts

        1        3         —        4   

Interest Rate Swaps Contracts

        —        100         307        407   

Credit Default Swaps Contracts

        —        114         —        114   
                                     

Total Other Financial Instruments*

        661        12         307        980   
                                     

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

Investments in which significant unobservable inputs (Level 3) used in determining a value for the period ending January 31, 2010 were less than 1% of net assets.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Short Duration Bond Fund   179

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 
Municipal Bonds - 95.1%                  
Alabama - 0.9%                  

Alabama Public School & College Authority Revenue Bonds

    1,000      5.000      05/01/15      1,118

Birmingham Water Works Board Revenue Bonds (µ)

    1,275      5.000      01/01/17      1,396

Courtland Industrial Development Board Revenue Bonds

    250      5.000      11/01/13      257

Mobile Industrial Development Board Revenue Bonds (Ê)

    1,400      4.875      06/01/34      1,489
                   
                  4,260
                   
Alaska - 0.3%                  

City of Anchorage Alaska General Obligation Unlimited (µ)(æ)

    500      5.750      12/01/16      523

Northern TOB Securitization Corp. Revenue Bonds

    755      4.625      06/01/23      742
                   
                  1,265
                   
Arizona - 1.3%                  

Arizona Health Facilities Authority Revenue Bonds

    2,000      5.250      01/01/18      2,178

Arizona Health Facilities Authority Revenue Bonds

    2,000      5.250      01/01/22      2,087

Arizona Transportation Board Revenue Bonds

    500      5.250      07/01/12      530

Arizona Transportation Board Revenue Bonds

    1,500      5.000      07/01/14      1,716
                   
                  6,511
                   
California - 9.9%                  

Abag Finance Authority for Nonprofit Corps. Certificate Of Participation

    600      5.700      08/15/14      601

California Health Facilities Financing Authority Revenue Bonds

    1,550      5.000      07/01/16      1,640

California Infrastructure & Economic Development Bank Revenue Bonds (Ê)(µ)

    1,000      0.180      06/01/34      1,000

California Municipal Finance Authority Revenue Bonds

    705      5.250      02/01/24      647

California State Department of Water Resources Revenue Bonds (µ)

    1,000      5.250      05/01/12      1,097

California State Department of Water Resources Revenue Bonds

    1,000      5.000      12/01/21      1,118

California Statewide Communities Development Authority Revenue Bonds

    2,250      5.000      06/15/13      2,406

California Statewide Communities Development Authority Revenue Bonds

    1,000      5.000      04/01/14      1,082

California Statewide Communities Development Authority Revenue Bonds

    2,260      5.000      04/01/19      2,405

California Statewide Communities Development Authority Revenue Bonds

    1,405      6.000      05/15/23      1,504

California Statewide Communities Development Authority Revenue Bonds (Ê)(µ)

    610      4.100      04/01/28      633

City of Vernon California Revenue Bonds

    2,000      5.125      08/01/21      2,110

County of Sacramento California Revenue Bonds

    2,000      5.000      07/01/22      2,076

County of Sacramento California Revenue Bonds

    895      5.500      07/01/28      923

County of Sacramento California Revenue Bonds

    750      5.625      07/01/29      779

Golden State Tobacco Securitization Corp. Revenue Bonds (µ)

    500      5.000      06/01/20      488

Golden State Tobacco Securitization Corp. Revenue Bonds (µ)

    750      4.600      06/01/23      645

Golden State Tobacco Securitization Corp. Revenue Bonds

    1,085      4.500      06/01/27      986

Kings River Conservation District Certificate Of Participation

    850      5.000      05/01/15      944

Los Angeles Harbor Department Revenue Bonds

    2,000      5.250      08/01/22      2,196

Los Angeles Unified School District General Obligation Unlimited (µ)

    1,150      5.000      07/01/21      1,205

Los Angeles Unified School District General Obligation Unlimited (µ)

    1,950      5.000      07/01/31      1,967

M-S-R Energy Authority Revenue Bonds

    1,410      6.125      11/01/29      1,433

Roseville Westpark Community Facilities District No. 1 Special Tax

    600      5.250      09/01/37      455

San Diego Public Facilities Financing Authority Revenue Bonds

    240      5.000      05/15/21      262

Southern California Public Power Authority Revenue Bonds (µ)

    405      5.375      01/01/12      438

State of California General Obligation Unlimited

    1,000      6.600      02/01/10      1,000

State of California General Obligation Unlimited

    1,000      5.000      02/01/12      1,068

State of California General Obligation Unlimited

    1,000      5.250      07/01/12      1,091

State of California General Obligation Unlimited (µ)

    1,000      6.000      02/01/17      1,135

State of California General Obligation Unlimited

    1,000      5.000      10/01/17      1,075

State of California General Obligation Unlimited

    1,250      5.000      07/01/20      1,348

State of California General Obligation Unlimited

    2,500      5.500      04/01/21      2,667

State of California General Obligation Unlimited

    1,000      5.250      07/01/21      1,089

State of California General Obligation Unlimited (Ê)(µ)

    2,000      0.170      07/01/23      2,000

 

180   Russell Tax Exempt Bond Fund

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 

State of California General Obligation Unlimited

    2,000      6.500      04/01/33      2,141

Tobacco Securitization Authority of Southern California Revenue Bonds

    820      4.750      06/01/25      734

Tuolumne Wind Project Authority Revenue Bonds

    1,500      5.000      01/01/18      1,603

University of California Revenue Bonds

    500      4.000      05/15/14      546
                   
                  48,537
                   
Colorado - 0.2%                  

Colorado Health Facilities Authority Revenue Bonds

    1,000      5.250      06/01/23      985

Colorado Housing & Finance Authority Revenue Bonds

    5      7.250      04/01/10      5

Colorado Housing & Finance Authority Revenue Bonds

    25      6.300      08/01/12      25

Colorado Housing & Finance Authority Revenue Bonds

    30      6.300      08/01/16      31

Colorado Housing & Finance Authority Revenue Bonds

    15      6.700      10/01/16      16
                   
                  1,062
                   
Connecticut - 0.2%                  

State of Connecticut General Obligation Unlimited

    790      5.000      01/01/16      908
                   
Delaware - 0.3%                  

Delaware State Economic Development Authority Revenue Bonds (Ê)(µ)

    250      4.900      05/01/26      251

State of Delaware General Obligation Unlimited

    1,000      5.000      01/01/17      1,168
                   
                  1,419
                   
District of Columbia - 0.2%                  

District of Columbia Revenue Bonds (µ)

    1,000      5.000      02/01/12      1,031
                   
Florida - 6.4%                  

City of Gulf Breeze Florida Revenue Bonds (µ)

    1,825      5.000      12/01/15      1,885

City of North Miami Florida Revenue Bonds (µ)

    1,325      5.000      04/01/10      1,329

City of Pembroke Pines Florida Revenue Bonds (µ)

    1,000      5.000      10/01/16      1,098

City of Tallahassee Florida Revenue Bonds (µ)

    500      5.000      10/01/11      532

County of Broward Florida Revenue Bonds

    1,560      5.375      10/01/29      1,595

County of Hillsborough Florida Revenue Bonds (µ)

    1,000      5.500      08/01/12      1,104

County of Miami-Dade Florida Revenue Bonds (µ)

    1,000      5.000      06/01/14      1,071

County of Miami-Dade Florida Revenue Bonds (µ)

    1,500      5.250      10/01/19      1,640

Escambia County Health Facilities Authority Revenue Bonds

    1,000      5.250      11/15/11      1,066

Escambia County Health Facilities Authority Revenue Bonds

    1,000      5.250      11/15/13      1,105

Florida Department of Children & Family Services Certificate Of Participation (µ)

    1,175      5.000      10/01/15      1,301

Florida Hurricane Catastrophe Fund Finance Corp. Revenue Bonds

    1,600      5.000      07/01/10      1,630

Florida State Board of Education General Obligation Unlimited

    1,000      5.000      06/01/16      1,146

Florida State Board of Education Revenue Bonds (µ)

    1,000      5.250      01/01/13      1,104

Florida State Department of Transportation Revenue Bonds (µ)

    2,000      5.000      07/01/13      2,230

Florida Water Pollution Control Financing Corp. Revenue Bonds

    500      5.500      01/15/12      533

Florida Water Pollution Control Financing Corp. Revenue Bonds

    2,000      5.000      01/15/25      2,111

Hillsborough County Aviation Authority Revenue Bonds

    1,000      5.000      10/01/14      1,117

Hillsborough County Educational Facilities Authority Revenue Revenue Bonds (µ)

    665      5.750      04/01/18      666

Kissimmee Utility Authority Revenue Bonds (µ)

    1,000      5.000      10/01/17      1,096

Miami-Dade County Educational Facilities Authority Revenue Bonds (µ)(æ)

    1,750      5.000      04/01/34      2,014

Orlando Utilities Commission Revenue Bonds

    370      5.250      10/01/20      394

Palm Beach County School District Certificate Of Participation (µ)

    1,000      5.000      08/01/14      1,095

State of Florida Revenue Bonds (µ)

    1,600      5.250      07/01/13      1,619

Tampa-Hillsborough County Expressway Authority Revenue Bonds (µ)

    1,000      5.000      07/01/14      1,091
                   
                  31,572
                   
Georgia - 5.3%                  

Burke County Development Authority Revenue Bonds (Ê)(µ)

    1,660      4.625      01/01/37      1,670

City of Atlanta Georgia Revenue Bonds

    1,000      6.000      11/01/20      1,097

 

Russell Tax Exempt Bond Fund   181

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 

City of Atlanta Georgia Revenue Bonds (µ)

    2,000      5.500      11/01/23      2,235

City of Atlanta Georgia Revenue Bonds

    1,300      6.000      11/01/25      1,389

Clayton County Development Authority Revenue Bonds

    1,560      8.750      06/01/29      1,604

County of Columbia Georgia General Obligation Unlimited

    1,730      4.000      04/01/13      1,884

Hall County School District General Obligation Unlimited

    1,000      5.000      11/01/12      1,108

Main Street Natural Gas, Inc. Revenue Bonds

    825      5.000      03/15/16      864

Marietta Development Authority Revenue Bonds

    575      6.250      06/15/20      534

Municipal Electric Authority of Georgia Revenue Bonds (µ)

    850      6.250      01/01/17      1,004

State of Georgia General Obligation Unlimited

    2,000      5.000      07/01/12      2,204

State of Georgia General Obligation Unlimited

    1,550      5.000      08/01/12      1,713

State of Georgia General Obligation Unlimited

    2,800      5.000      07/01/13      3,174

State of Georgia General Obligation Unlimited

    2,100      5.500      07/01/13      2,415

State of Georgia General Obligation Unlimited

    1,240      5.000      07/01/17      1,449

State of Georgia General Obligation Unlimited

    1,500      5.000      07/01/22      1,697
                   
                  26,041
                   
Guam - 0.3%                  

Territory of Guam Revenue Bonds

    500      5.375      12/01/24      514

Territory of Guam Revenue Bonds

    805      5.625      12/01/29      819
                   
                  1,333
                   
Hawaii - 0.5%                  

City & County of Honolulu Hawaii Revenue Bonds (µ)

    1,500      5.000      07/01/19      1,681

County of Kauai Hawaii General Obligation Unlimited (µ)(æ)

    375      6.250      08/01/19      386

Hawaii Housing & Community Development Corp. Revenue Bonds

    265      3.700      01/01/22      264
                   
                  2,331
                   
Idaho - 0.6%                  

Boise State University Revenue Bonds (µ)(æ)

    1,230      5.375      04/01/22      1,354

Boise State University Revenue Bonds (µ)

    15      5.375      04/01/22      16

Idaho Housing & Finance Association Revenue Bonds (µ)

    1,330      5.250      07/15/21      1,479
                   
                  2,849
                   
Illinois - 1.8%                  

City of Chicago Illinois General Obligation Unlimited (µ)

    750      6.000      01/01/11      759

City of Chicago Illinois General Obligation Unlimited (µ)

    2,135      5.000      12/01/23      2,281

City of Chicago Illinois General Obligation Unlimited (µ)(æ)

    1,000      5.000      01/01/34      1,142

Cook County Community Consolidated School District No. 15-Palatine General Obligation Limited (µ)

    2,235           12/01/13      2,043

Illinois Finance Authority Revenue Bonds

    105      6.000      05/15/10      107

Illinois Finance Authority Revenue Bonds

    670      5.500      10/01/12      726

Lake County Community Unit School District No. 116-Round Lake General Obligation Unlimited (µ)

    400      7.600      02/01/14      499

State of Illinois Revenue Bonds (µ)

    1,000      5.000      06/15/16      1,128
                   
                  8,685
                   
Indiana - 1.9%                  

Ball State University Revenue Bonds (µ)

    1,000      5.000      07/01/16      1,110

Indiana Bond Bank Revenue Bonds (µ)

    140      5.750      08/01/13      142

Indiana Finance Authority Revenue Bonds (µ)

    925      5.000      07/01/11      970

Indiana Finance Authority Revenue Bonds

    1,000      4.900      01/01/16      1,042

Indiana Finance Authority Revenue Bonds

    1,500      5.250      02/01/18      1,750

Indiana Finance Authority Revenue Bonds

    1,000      5.000      02/01/19      1,144

Indiana Health Facility Financing Authority Revenue Bonds

    1,000      5.500      11/15/10      1,037

Indiana Health Facility Financing Authority Revenue Bonds (Ê)

    1,000      5.000      11/01/27      1,059

Indianapolis Local Public Improvement Bond Bank Revenue Bonds

    1,000      5.000      02/01/18      1,149
                   
                  9,403
                   

 

182   Russell Tax Exempt Bond Fund

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 
Iowa - 0.5%                  

Iowa Finance Authority Revenue Bonds

    290      6.000      07/01/10      295

Iowa Finance Authority Revenue Bonds (µ)

    1,000      5.000      07/01/14      1,044

Iowa Tobacco Settlement Authority Revenue Bonds (æ)

    1,000      5.600      06/01/35      1,074
                   
                  2,413
                   
Kansas - 0.2%                  

Kansas Development Finance Authority Revenue Bonds (µ)

    150      5.000      08/01/10      153

Wyandotte County-Kansas City Unified Government Revenue Bonds

    155      4.750      12/01/16      156

Wyandotte County-Kansas City Unified Government Revenue Bonds

    715      4.875      10/01/28      504
                   
                  813
                   
Louisiana - 0.6%                  

Louisiana Public Facilities Authority Revenue Bonds

    1,000      5.000      07/01/19      1,026

Louisiana State Citizens Property Insurance Corp. Revenue Bonds (µ)

    1,600      6.750      06/01/26      1,825
                   
                  2,851
                   
Maryland - 4.8%                  

County of Prince George’s Maryland General Obligation Limited

    1,000      5.000      07/15/16      1,167

Maryland Economic Development Corp. Revenue Bonds

    1,250      5.125      06/01/20      1,253

Maryland Economic Development Corp. Revenue Bonds

    885      6.200      09/01/22      1,012

Maryland Economic Development Corp. Revenue Bonds

    1,120      5.375      06/01/25      1,126

Maryland Health & Higher Educational Facilities Authority Revenue Bonds

    1,000      5.400      01/01/31      871

Maryland Health & Higher Educational Facilities Authority Revenue Bonds (Ê)

    465      5.000      05/15/48      510

Maryland State Department of Transportation Revenue Bonds

    1,100      5.000      05/01/17      1,212

Maryland State Transportation Authority Revenue Bonds

    1,000      5.000      03/01/16      1,150

State of Maryland General Obligation Unlimited

    2,000      5.000      02/01/12      2,172

State of Maryland General Obligation Unlimited

    2,500      5.250      03/01/13      2,827

State of Maryland General Obligation Unlimited

    5,000      5.000      07/15/14      5,783

State of Maryland General Obligation Unlimited

    1,500      5.000      08/01/14      1,736

State of Maryland General Obligation Unlimited

    1,000      5.000      03/15/17      1,168

State of Maryland General Obligation Unlimited

    1,150      5.000      11/01/17      1,349
                   
                  23,336
                   
Massachusetts - 1.4%                  

Commonwealth of Massachusetts General Obligation Limited (æ)

    430      6.000      02/01/11      434

Commonwealth of Massachusetts General Obligation Unlimited

    1,500      5.250      08/01/13      1,708

Commonwealth of Massachusetts General Obligation Unlimited

    1,000      5.500      10/01/16      1,183

Massachusetts Development Finance Agency Revenue Bonds

    55      5.125      12/01/11      56

Massachusetts Development Finance Agency Revenue Bonds

    50      5.150      10/01/14      53

Massachusetts Health & Educational Facilities Authority Revenue Bonds

    995      5.375      07/01/21      1,019

Massachusetts Health & Educational Facilities Authority Revenue Bonds (Ê)

    1,050      4.125      10/01/37      1,085

Massachusetts Port Authority Revenue Bonds

    150      5.750      07/01/10      153

Massachusetts State Water Pollution Abatement Revenue Bonds

    1,090      5.000      08/01/16      1,268
                   
                  6,959
                   
Michigan - 1.5%                  

City of Detroit Michigan Revenue Bonds (µ)

    1,000      5.000      07/01/14      1,080

City of Detroit Michigan Revenue Bonds (µ)

    1,015      5.000      07/01/18      1,064

Kent Hospital Finance Authority Revenue Bonds (Ê)

    500      5.250      01/15/47      544

Michigan Municipal Bond Authority Revenue Bonds

    1,000      5.250      10/01/11      1,074

Michigan State Hospital Finance Authority Revenue Bonds

    1,000      5.500      11/01/14      1,056

Michigan State Housing Development Authority Revenue Bonds (µ)

    300      4.150      10/01/13      309

Michigan Strategic Fund Revenue Bonds

    2,000      6.250      06/01/14      2,262
                   
                  7,389
                   

 

Russell Tax Exempt Bond Fund   183

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 
Minnesota - 2.8%                  

City of Minneapolis Minnesota Revenue Bonds

    1,855      6.375      11/15/23      2,057

City of State Louis Park Minnesota Revenue Bonds

    1,165      5.500      07/01/17      1,236

City of State Louis Park Minnesota Revenue Bonds

    725      5.500      07/01/18      761

Minnesota State Municipal Power Agency Revenue Bonds

    2,220      5.250      10/01/21      2,366

State of Minnesota General Obligation Unlimited

    545      5.000      06/01/14      628

State of Minnesota General Obligation Unlimited

    1,000      5.000      08/01/15      1,164

State of Minnesota General Obligation Unlimited

    2,990      5.000      06/01/17      3,488

State of Minnesota General Obligation Unlimited

    1,925      4.000      08/01/18      2,092
                   
                  13,792
                   
Mississippi - 0.2%                  

Mississippi Development Bank Special Obligation Revenue Bonds (µ)

    1,000      5.000      07/01/15      1,088
                   
Missouri - 0.4%                  

Cape Girardeau County Industrial Development Authority Revenue Bonds

    60      5.500      06/01/34      60

City of State Louis Missouri Revenue Bonds

    1,680      6.125      07/01/24      1,750
                   
                  1,810
                   
Nevada - 0.8%                  

County of Clark Nevada General Obligation Limited (µ)

    1,000      5.000      11/01/13      1,119

County of Clark Nevada Revenue Bonds

    1,000      5.000      07/01/12      1,078

County of Clark Nevada Revenue Bonds (µ)

    1,000      5.000      07/01/22      1,049

Truckee Meadows Water Authority Revenue Bonds (µ)

    500      5.500      07/01/11      533
                   
                  3,779
                   
New Jersey - 2.5%                  

New Jersey Economic Development Authority Revenue Bonds (µ)

    1,000      5.000      06/15/11      1,017

New Jersey Economic Development Authority Revenue Bonds

    1,000      5.000      09/01/12      1,089

New Jersey Economic Development Authority Revenue Bonds

    1,000      5.250      03/01/14      1,125

New Jersey Economic Development Authority Revenue Bonds

    1,020      5.375      06/15/15      1,047

New Jersey Educational Facilities Authority Revenue Bonds

    1,000      5.750      09/01/10      1,031

New Jersey Educational Facilities Authority Revenue Bonds

    2,000      5.000      07/01/16      2,349

New Jersey Health Care Facilities Financing Authority Revenue Bonds (µ)

    1,000      5.000      09/15/17      1,097

New Jersey Transportation Trust Fund Authority Revenue Bonds

    1,000      5.000      12/15/16      1,113

New Jersey Transportation Trust Fund Authority Revenue Bonds

    1,000      5.000      12/15/18      1,093

Tobacco Settlement Financing Corp. Revenue Bonds

    1,170      4.500      06/01/23      1,096
                   
                  12,057
                   
New York - 9.2%                  

Battery Park City Authority Revenue Bonds

    1,500      5.250      11/01/22      1,657

Brooklyn Arena Local Development Corp. Revenue Bonds

    2,250      6.500      07/15/30      2,421

City of New York New York General Obligation Unlimited

    1,000      5.000      08/01/11      1,063

City of New York New York General Obligation Unlimited (æ)

    110      5.750      08/01/11      114

City of New York New York General Obligation Unlimited

    15      5.750      08/01/11      16

City of New York New York General Obligation Unlimited

    850      5.000      03/01/12      915

City of New York New York General Obligation Unlimited

    750      5.000      11/01/12      822

City of New York New York General Obligation Unlimited

    235      5.250      11/01/12      254

Erie County Industrial Development Agency (The) Revenue Bonds

    1,025      5.000      05/01/14      1,142

Metropolitan Transportation Authority Revenue Bonds

    1,430      6.500      11/15/28      1,635

New York City Municipal Water Finance Authority Revenue Bonds

    1,500      5.250      06/15/12      1,648

New York State Dormitory Authority Revenue Bonds

    1,790      5.000      07/01/16      1,948

New York State Dormitory Authority Revenue Bonds

    1,000      5.250      02/15/21      1,135

New York State Dormitory Authority Revenue Bonds

    1,000      6.500      12/01/21      1,005

New York State Dormitory Authority Revenue Bonds (Ê)

    2,000      5.250      11/15/23      2,172

New York State Dormitory Authority Revenue Bonds

    1,500      5.000      07/01/26      1,578

New York State Dormitory Authority Revenue Bonds

    2,500      5.250      07/01/29      2,698

New York State Environmental Facilities Corp. Revenue Bonds (µ)

    1,000      6.000      06/15/12      1,110

New York State Environmental Facilities Corp. Revenue Bonds

    770      5.000      06/15/22      852

 

184   Russell Tax Exempt Bond Fund

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 

New York State Environmental Facilities Corp. Revenue Bonds

    1,640      5.000      09/15/23      1,794

New York State Thruway Authority Revenue Bonds (µ)

    1,575      5.250      04/01/13      1,763

New York State Thruway Authority Revenue Bonds

    1,500      5.000      04/01/14      1,704

New York State Thruway Authority Revenue Notes

    1,715      4.000      07/15/11      1,789

Sales Tax Asset Receivable Corp. Revenue Bonds (µ)

    1,700      5.000      10/15/25      1,836

Sales Tax Asset Receivable Corp. Revenue Bonds (µ)

    2,500      5.000      10/15/29      2,664

Tobacco Settlement Financing Corp. Revenue Bonds

    1,030      5.000      06/01/12      1,124

Town of Hempstead Local Development Corp. Revenue Bonds

    1,600      5.750      07/01/23      1,653

Triborough Bridge & Tunnel Authority Revenue Bonds

    950      5.000      11/15/17      1,086

Triborough Bridge & Tunnel Authority Revenue Bonds (µ)

    1,000      5.500      11/15/20      1,172

Triborough Bridge & Tunnel Authority Revenue Bonds (Ê)

    2,250      5.000      11/15/25      2,481

Triborough Bridge & Tunnel Authority Revenue Bonds (Ê)

    900      5.000      11/15/38      995

TSASC, Inc. Revenue Bonds

    900      4.750      06/01/22      879
                   
                  45,125
                   
North Carolina - 2.4%                  

City of Charlotte North Carolina General Obligation Unlimited

    1,890      5.000      06/01/15      2,203

County of Wake North Carolina General Obligation Unlimited

    1,000      5.000      03/01/13      1,125

North Carolina Eastern Municipal Power Agency Revenue Bonds

    650      5.000      01/01/16      719

North Carolina Medical Care Commission Revenue Bonds

    410      5.400      10/01/27      384

North Carolina Municipal Power Agency No. 1 Revenue Bonds (µ)

    1,500      6.000      01/01/12      1,641

North Carolina Municipal Power Agency No. 1 Revenue Bonds

    200      5.500      01/01/13      223

State of North Carolina General Obligation Unlimited

    1,000      5.000      03/01/12      1,089

State of North Carolina General Obligation Unlimited

    1,000      5.000      03/01/14      1,109

State of North Carolina General Obligation Unlimited

    2,000      5.000      03/01/20      2,251

University of North Carolina at Chapel Hill Revenue Bonds (æ)

    1,065      5.375      12/01/14      1,134
                   
                  11,878
                   
North Dakota - 0.1%                  

County of Williams North Dakota Revenue Bonds

    320      5.000      11/01/31      274
                   
Ohio - 3.4%                  

Buckeye Tobacco Settlement Financing Authority Revenue Bonds

    3,005      5.125      06/01/24      2,776

Buckeye Tobacco Settlement Financing Authority Revenue Bonds

    2,500      5.875      06/01/47      1,918

Kent State University Revenue Bonds (µ)

    2,000      5.000      05/01/16      2,230

Ohio Air Quality Development Authority Revenue Bonds

    1,110      5.700      02/01/14      1,216

Ohio Air Quality Development Authority Revenue Bonds

    1,050      5.625      06/01/18      1,126

Ohio Air Quality Development Authority Revenue Bonds

    1,725      5.700      08/01/20      1,856

State of Ohio General Obligation Unlimited (æ)

    5,000      5.375      08/01/18      5,467
                   
                  16,589
                   
Oklahoma - 0.1%                  

Oklahoma Development Finance Authority Revenue Bonds

    275      5.000      10/01/13      287

Oklahoma Housing Finance Agency Revenue Bonds

    15      7.600      09/01/15      15
                   
                  302
                   
Oregon - 1.1%                  

City of Portland Oregon Revenue Bonds

    2,000      5.000      06/15/18      2,299

Clackamas County School District No. 62C General Obligation Unlimited (æ)

    435      6.000      06/15/11      444

Morrow County School District No. 1 General Obligation Unlimited (µ)

    1,955      5.500      06/15/21      2,341

State of Oregon General Obligation Limited

    520      5.700      10/01/32      523
                   
                  5,607
                   
Pennsylvania - 6.6%                  

Allegheny County Hospital Development Authority Revenue Bonds

    2,000      5.000      09/01/16      2,170

Allegheny County Industrial Development Authority Revenue Bonds

    925      6.500      05/01/17      965

Allegheny County Industrial Development Authority Revenue Bonds (Ê)(µ)

    900      0.190      07/01/27      900

 

Russell Tax Exempt Bond Fund   185

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 

Allegheny County Port Authority Revenue Bonds (µ)

    250      5.500      03/01/17      259

Berks County Municipal Authority Revenue Bonds

    1,960      5.250      11/01/24      2,031

Berks County Vocational Technical School Authority Revenue Bonds (µ)

    1,260      5.000      06/01/15      1,341

Butler County Hospital Authority Revenue Bonds

    1,000      7.125      07/01/29      1,117

Commonwealth of Pennsylvania General Obligation Unlimited

    2,000      5.000      08/01/13      2,262

Commonwealth of Pennsylvania General Obligation Unlimited

    2,500      5.500      01/01/14      2,893

Commonwealth of Pennsylvania General Obligation Unlimited (µ)

    1,000      5.000      09/01/15      1,132

Commonwealth of Pennsylvania General Obligation Unlimited (µ)

    1,300      5.375      07/01/17      1,539

County of Allegheny Pennsylvania General Obligation Unlimited (µ)

    1,000      5.000      10/01/15      1,137

Cumberland County Municipal Authority Revenue Bonds

    1,000      6.250      01/01/24      1,025

Dauphin County General Authority Revenue Bonds

    2,000      6.000      06/01/29      2,063

Erie County Industrial Development Authority Revenue Bonds

    180      5.300      04/01/12      185

Norwin School District General Obligation Unlimited (µ)(æ)

    250      6.000      04/01/20      252

Pennsylvania Economic Development Financing Authority Revenue Bonds

    1,200      6.250      10/15/23      1,264

Pennsylvania Economic Development Financing Authority Revenue Bonds (Ê)

    605      5.000      12/01/42      637

Pennsylvania Higher Educational Facilties Authority Revenue Bonds

    1,000      5.000      09/01/17      1,152

Pennsylvania Higher Educational Facilties Authority Revenue Bonds (µ)

    3,000      5.000      06/15/20      3,191

Pennsylvania Higher Educational Facilties Authority Revenue Bonds (Ê)(µ)

    500      0.240      11/01/20      500

Pennsylvania Intergovernmental Cooperative Authority Special Tax

    1,000      5.000      06/15/17      1,124

Pennsylvania Turnpike Commission Revenue Bonds (µ)

    1,450      5.500      12/01/13      1,666

Sayre Health Care Facilities Authority Revenue Bonds (æ)

    305      5.300      12/01/12      327

University of Pittsburgh Revenue Bonds

    1,000      5.500      09/15/21      1,163
                   
                  32,295
                   
Puerto Rico - 5.7%                  

Commonwealth of Puerto Rico General Obligation Unlimited

    750      5.250      07/01/15      791

Commonwealth of Puerto Rico General Obligation Unlimited (µ)

    1,060      5.000      07/01/16      1,165

Commonwealth of Puerto Rico General Obligation Unlimited

    1,780      5.250      07/01/22      1,792

Commonwealth of Puerto Rico General Obligation Unlimited (æ)

    620      5.250      07/01/32      737

Commonwealth of Puerto Rico General Obligation Unlimited

    380      5.250      07/01/32      360

Government Development Bank for Puerto Rico Revenue Bonds (µ)

    2,830      4.750      12/01/15      2,890

Puerto Rico Electric Power Authority Revenue Bonds (µ)

    500      5.500      07/01/17      541

Puerto Rico Highway & Transportation Authority Revenue Bonds

    2,000      5.000      07/01/13      2,109

Puerto Rico Housing Finance Authority Revenue Bonds

    180      5.500      12/01/15      199

Puerto Rico Housing Finance Authority Revenue Bonds

    1,830      5.500      12/01/16      2,020

Puerto Rico Public Buildings Authority Revenue Bonds

    500      5.750      07/01/16      533

Puerto Rico Public Buildings Authority Revenue Bonds (æ)

    2,000      5.500      07/01/23      2,323

Puerto Rico Public Finance Corp. Revenue Bonds (Ê)(µ)

    3,250      5.750      08/01/27      3,345

Puerto Rico Sales Tax Financing Corp. Revenue Bonds

    2,500      5.500      08/01/22      2,685

Puerto Rico Sales Tax Financing Corp. Revenue Bonds

    1,000      6.125      08/01/29      1,037

Puerto Rico Sales Tax Financing Corp. Revenue Bonds

    2,030      6.750      08/01/32      1,446

Puerto Rico Sales Tax Financing Corp. Revenue Bonds (Ê)

    4,000      5.000      08/01/39      4,206
                   
                  28,179
                   
Rhode Island - 0.2%                  

Rhode Island Economic Development Corp. Revenue Bonds (µ)

    1,000      5.000      06/15/12      1,078
                   
South Carolina - 1.0%                  

Greenville County School District Revenue Bonds

    1,000      5.000      12/01/11      1,065

South Carolina Transportation Infrastructure Bank Revenue Bonds

    2,500      5.000      10/01/17      2,777

South Carolina Transportation Infrastructure Bank Revenue Bonds (µ)(æ)

    1,000      5.250      10/01/31      1,077
                   
                  4,919
                   
South Dakota - 0.3%                  

South Dakota Housing Development Authority Revenue Bonds

    270      4.800      05/01/22      274

South Dakota State Building Authority Revenue Bonds (µ)

    1,330      5.000      09/01/12      1,465
                   
                  1,739
                   

 

186   Russell Tax Exempt Bond Fund

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 
Tennessee - 0.8%                  

Clarksville Natural Gas Acquisition Corp. Revenue Bonds

    750      5.000      12/15/14      783

Memphis-Shelby County Airport Authority Revenue Bonds

    2,160      5.050      09/01/12      2,271

Tennessee Housing Development Agency Revenue Bonds

    950      5.375      01/01/18      954
                   
                  4,008
                   
Texas - 10.9%                  

Alvin Independent School District General Obligation Unlimited

    545      6.750      08/15/10      564

Canadian River Municipal Water Authority Revenue Bonds (µ)

    800      5.000      02/15/17      877

Canadian River Municipal Water Authority Revenue Bonds (µ)

    415      5.000      02/15/18      449

City of Austin Texas Revenue Bonds (µ)

    1,000      5.250      11/15/14      1,157

City of Dallas Texas Revenue Bonds (µ)

    3,500      5.000      10/01/24      3,510

City of Houston Texas Revenue Bonds

    1,500      5.000      07/01/17      1,645

City of New Braunfels Texas General Obligation Limited (µ)(æ)

    665      5.250      10/01/21      777

City of San Antonio Texas Revenue Bonds

    1,000      5.250      02/01/13      1,121

City of San Antonio Texas Revenue Bonds

    1,000      5.000      02/01/14      1,136

City of San Antonio Texas Revenue Bonds

    1,000      5.000      02/01/18      1,138

Conroe Independent School District General Obligation Unlimited

    1,445      5.000      02/15/13      1,608

County of Fort Bend Texas General Obligation Limited (µ)

    1,000      5.000      03/01/16      1,135

Dallas Convention Center Hotel Development Corp. Revenue Bonds

    2,150      5.250      01/01/23      2,246

Dallas Independent School District General Obligation Unlimited

    2,100      5.000      02/15/14      2,393

Dallas-Fort Worth International Airport Facilities Improvement Corp. Revenue Bonds

    280      5.000      11/01/22      294

Dallas-Fort Worth International Airport Facilities Improvement Corp. Revenue Bonds

    200      5.000      11/01/23      210

Dallas-Fort Worth International Airport Facilities Improvement Corp. Revenue Bonds

    250      5.000      11/01/24      261

Dickinson Independent School District General Obligation Unlimited

    1,000      5.000      02/15/21      1,076

Dickinson Independent School District General Obligation Unlimited

    1,500      5.000      02/15/23      1,604

Fort Worth Independent School District General Obligation Unlimited

    2,000      5.000      02/15/18      2,301

Grand Prairie Independent School District General Obligation Unlimited

    750      5.000      02/15/19      836

Harris County Industrial Development Corp. Revenue Bonds

    1,115      5.000      02/01/23      1,101

Laredo Independent School District General Obligation Unlimited (æ)

    1,070      5.375      08/01/16      1,149

Lower Colorado River Authority Revenue Bonds (µ)

    1,995      5.875      05/15/14      2,021

Lower Colorado River Authority Revenue Bonds

    1,300      5.000      05/15/16      1,449

McKinney Independent School District General Obligation Unlimited

    1,200      6.000      02/15/18      1,466

North East Independent School District General Obligation Unlimited

    1,000      5.000      08/01/18      1,137

North East Independent School District General Obligation Unlimited (µ)(æ)

    1,000      5.000      08/01/33      1,160

North Texas Municipal Water District Revenue Bonds (µ)

    2,000      5.000      09/01/13      2,266

North Texas Tollway Authority Revenue Bonds

    960      6.000      01/01/24      1,032

North Texas Tollway Authority Revenue Bonds (Ê)

    1,235      5.750      01/01/38      1,350

Round Rock Independent School District General Obligation Unlimited

    1,000      6.500      08/01/10      1,031

Round Rock Independent School District General Obligation Unlimited

    430      5.375      08/01/12      477

SA Energy Acquisition Public Facility Corp. Revenue Bonds

    1,500      5.250      08/01/15      1,604

Sabine River Authority Revenue Bonds

    1,500      5.200      05/01/28      789

Spring Independent School District General Obligation Unlimited

    1,000      5.000      08/15/16      1,152

Texas A&M University Revenue Bonds

    2,000      5.000      05/15/15      2,307

Texas Private Activity Bond Surface Transportation Corp. Revenue Bonds

    1,445      7.500      12/31/31      1,588

Texas State Transportation Commission Revenue Bonds

    2,500      5.000      04/01/25      2,677

Tyler Independent School District General Obligation Unlimited

    1,350      5.000      02/15/10      1,352
                   
                  53,446
                   
Utah - 0.8%                  

County of Utah Utah Revenue Bonds

    200      5.050      11/01/17      207

Intermountain Power Agency Revenue Bonds (µ)

    1,400      6.500      07/01/10      1,435

State of Utah General Obligation Unlimited

    2,000      5.000      07/01/16      2,336
                   
                  3,978
                   

 

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Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity		      Market
Value
$
                 
Virgin Islands - 0.0%                  

Virgin Islands Public Finance Authority Revenue Bonds

    200      5.000      10/01/13      214
                   
Virginia - 2.5%                  

Chesapeake Economic Development Authority Revenue Bonds (Ê)

    550      3.600      02/01/32      565

Chesterfield County Economic Development Authority Revenue Bonds

    650      5.000      05/01/23      710

Commonwealth of Virginia General Obligation Unlimited

    1,000      5.000      06/01/23      1,129

County of Fairfax Virginia General Obligation Unlimited

    1,750      5.250      04/01/14      2,031

County of Loudoun Virginia General Obligation Unlimited

    1,000      5.000      07/01/14      1,156

University of Virginia Revenue Bonds

    1,295      5.000      06/01/20      1,389

University of Virginia Revenue Bonds

    1,495      5.000      06/01/21      1,600

Virginia College Building Authority Revenue Bonds

    1,065      5.000      02/01/14      1,214

Virginia College Building Authority Revenue Bonds(æ)

    1,000      5.000      02/01/21      1,145

Virginia Commonwealth Transportation Board Revenue Bonds

    360      5.375      05/15/12      381

Virginia Public School Authority Revenue Bonds

    1,000      5.000      08/01/17      1,156
                   
                  12,476
                   
Washington - 3.2%                  

County of King Washington Revenue Bonds (µ)

    1,625      5.000      01/01/14      1,841

County of Kitsap Washington General Obligation Limited(µ)(æ)

    775      5.750      07/01/14      793

Energy Northwest Revenue Bonds

    1,000      5.000      07/01/11      1,062

Energy Northwest Revenue Bonds

    1,000      5.000      07/01/14      1,143

Energy Northwest Revenue Bonds

    2,500      5.000      07/01/15      2,879

Energy Northwest Revenue Bonds

    1,000      7.125      07/01/16      1,256

King County Public Hospital District No. 2 General Obligation Limited(µ)

    1,000      5.000      12/01/19      1,060

King County School District No. 405 Bellevue General Obligation Unlimited (µ)

    1,000      5.000      12/01/14      1,147

Mason County School District No. 309 Shelton General Obligation Unlimited (µ)

    1,115      5.000      12/01/18      1,283

Pierce County School District No. 3 Puyallup General Obligation Unlimited (µ)

    1,000      5.000      12/01/18      1,104

State of Washington General Obligation Unlimited

    1,000      5.000      07/01/17      1,152

Tobacco Settlement Authority of Washington Revenue Bonds

    745      6.500      06/01/26      755
                   
                  15,475
                   
Wisconsin - 1.0%                  

City of Madison Wisconsin Revenue Bonds

    280      4.875      10/01/27      302

State of Wisconsin Certificate Of Participation (µ)

    2,825      5.000      03/01/11      2,953

Wisconsin Health & Educational Facilities Authority Revenue Bonds (µ)

    1,425      5.000      12/01/10      1,472

Wisconsin Health & Educational Facilities Authority Revenue Bonds

    210      5.250      05/01/12      216

Wisconsin Health & Educational Facilities Authority Revenue Bonds

    220      5.250      05/01/13      228
                   
                  5,171
                   
Total Municipal Bonds (cost $450,332)                   466,247
                   
Short-Term Investments - 3.6%                  

Russell U.S. Cash Management Fund

    17,497,104                17,497
                   
Total Short-Term Investments (cost $17,497)                   17,497
                   
Total Investments - 98.7% (identified cost $467,829)                   483,744
Other Assets and Liabilities, Net - 1.3%                   6,139
                   
Net Assets - 100.0%                   489,883
                   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

188   Russell Tax Exempt Bond Fund

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

        %
    
Quality Ratings as of % of Market Value     

AAA

      24

AA

      35

A

      25

BBB

      14

BB

      —

Other

      2
      
     100
      
Economic Sector Emphasis as a of % of Market Value

General Obligation

      22

Education Revenue

      16

Other Revenue

      13

Utility Revenue

      15

Industrial Revenue

      13

Health Care Revenue

      8

Cash Equivalents

      7

Pollution Control Revenue

      3

Leasing Revenue

      2

Housing Revenue

      1
      
     100
      

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Tax Exempt Bond Fund   189

Table of Contents

Russell Investment Company

Russell Tax Exempt Bond Fund

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

     Market Value
Portfolio Summary    Level 1      Level 2      Level 3      Total
                 

Municipal Bonds

                  

Alabama

    $ —      $ 4,260      $ —      $ 4,260

Alaska

      —        1,265        —        1,265

Arizona

      —        6,511        —        6,511

California

      —        48,537        —        48,537

Colorado

      —        1,062        —        1,062

Connecticut

      —        908        —        908

Delaware

      —        1,419        —        1,419

District of Columbia

      —        1,031        —        1,031

Florida

      —        31,572        —        31,572

Georgia

      —        26,041        —        26,041

Guam

      —        1,333        —        1,333

Hawaii

      —        2,331        —        2,331

Idaho

      —        2,849        —        2,849

Illinois

      —        8,685        —        8,685

Indiana

      —        9,403        —        9,403

Iowa

      —        2,413        —        2,413

Kansas

      —        813        —        813

Louisiana

      —        2,851        —        2,851

Maryland

      —        23,336        —        23,336

Massachusetts

      —        6,959        —        6,959

Michigan

      —        7,389        —        7,389

Minnesota

      —        13,792        —        13,792

Mississippi

      —        1,088        —        1,088

Missouri

      —        1,810        —        1,810

Nevada

      —        3,779        —        3,779

New Jersey

      —        12,057        —        12,057

New York

      —        45,125        —        45,125

North Carolina

      —        11,878        —        11,878

North Dakota

      —        274        —        274

Ohio

      —        16,589        —        16,589

Oklahoma

      —        302        —        302

Oregon

      —        5,607        —        5,607

Pennsylvania

      —        32,295        —        32,295

Puerto Rico

      —        28,179        —        28,179

Rhode Island

      —        1,078        —        1,078

South Carolina

      —        4,919        —        4,919

South Dakota

      —        1,739        —        1,739

Tennessee

      —        4,008        —        4,008

Texas

      —        53,446        —        53,446

Utah

      —        3,978        —        3,978

Virgin Islands

      —        214        —        214

Virginia

      —        12,476        —        12,476

Washington

      —        15,475        —        15,475

Wisconsin

      —        5,171        —        5,171

Short-Term Investments

      —        17,497        —        17,497
                                 

Total Investments

    $ —      $ 483,744      $ —      $ 483,744
                                 

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

190   Russell Tax Exempt Bond Fund

Table of Contents

Russell Investment Company

Russell Real Estate Securities Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Common Stocks - 96.6%        
Diversified - 9.3%        

Agile Property Holdings, Ltd.

    329,000      411

British Land Co. PLC (ö)

    166,442      1,154

CapitaLand, Ltd.

    1,362,500      3,703

Cousins Properties, Inc. (ö)(Ñ)

    702,959      5,385

Dexus Property Group (ö)

    2,425,124      1,772

FKP Property Group (ö)

    633,285      390

Forest City Enterprises, Inc. Class A (Æ)(Ñ)

    469,575      5,311

Glorious Property Holdings, Ltd. (Æ)

    3,653,653      1,397

Goldcrest Co., Ltd.

    57,430      1,609

GPT Group (ö)

    1,655,305      830

Great Eagle Holdings, Ltd.

    151,222      368

Hang Lung Properties, Ltd. - ADR

    458,900      1,551

Henderson Land Development Co., Ltd.

    449,984      2,824

Hysan Development Co., Ltd.

    578,218      1,430

IVG Immobilien AG (Æ)

    161,726      1,228

Keppel Land, Ltd.

    22      —

KWG Property Holding, Ltd.

    1,525,099      916

Land Securities Group PLC (ö)

    374,742      3,802

Lexington Realty Trust (ö)(Ñ)

    264,510      1,574

London & Stamford Property, Ltd.

    164,822      317

Mirvac Group (ö)

    1,873,251      2,396

Mitsubishi Estate Co., Ltd.

    383,000      6,222

Mitsui Fudosan Co., Ltd.

    278,618      4,709

New World Development, Ltd.

    1,718,000      2,812

Norwegian Property ASA (Æ)

    193,085      436

Sponda OYJ (Æ)

    213,820      804

Stockland (ö)

    896,982      2,946

Sumitomo Realty & Development Co., Ltd.

    122,000      2,161

Sun Hung Kai Properties, Ltd.

    648,541      8,307

Tokyo Tatemono Co., Ltd.

    191,378      758

Unibail-Rodamco SE (ö)

    28,680      6,231

Vornado Realty Trust (ö)(Ñ)

    1,327,141      85,839

Wharf Holdings, Ltd.

    529,000      2,612
         
        162,205
         
Free Standing Retail - 0.7%        

National Retail Properties, Inc. (ö)(Ñ)

    324,800      6,561

Realty Income Corp. (ö)(Ñ)

    215,927      6,031
         
        12,592
         
Health Care - 11.6%        

Brookdale Senior Living, Inc. (Æ)(Ñ)

    571,155      10,424

HCP, Inc. (ö)(Ñ)

    1,654,809      46,914

Health Care REIT, Inc. (ö)

    854,255      36,733

Nationwide Health Properties, Inc. (ö)

    1,348,611      44,450

Omega Healthcare Investors, Inc. (ö)(Ñ)

    716,100      13,398

Senior Housing Properties Trust (ö)

    678,079      14,138

Ventas, Inc. (ö)

    875,791      36,958
         
        203,015
         
Industrial - 5.3%        

AMB Property Corp. (ö)(Ñ)

    775,503      18,612

DCT Industrial Trust, Inc. (ö)(Ñ)

    3,239,975      16,038

EastGroup Properties, Inc. (ö)(Ñ)

    142,105      5,437
     Principal
Amount ($)
or Shares		      Market
Value
$

First Potomac Realty Trust (ö)(Ñ)

    349,700      4,756

Goodman Group (ö)

    3,235,164      1,664

ProLogis (ö)(Ñ)

    3,624,280      45,666

Segro PLC (ö)

    230,540      1,153
         
        93,326
         
Lodging/Resorts - 6.1%        

DiamondRock Hospitality Co. (ö)(Ñ)

    1,043,570      8,495

Gaylord Entertainment Co. (Æ)(Ñ)

    211,228      4,064

Hersha Hospitality Trust (ö)

    642,303      2,338

Hospitality Properties Trust (ö)(Ñ)

    246,609      5,455

Host Hotels & Resorts, Inc. (Æ)(ö)(Ñ)

    4,915,241      52,101

Hyatt Hotels Corp. (Æ)

    124,456      3,686

LaSalle Hotel Properties (ö)(Ñ)

    270,600      5,453

Orient-Express Hotels, Ltd. Class A (Æ)(Ñ)

    412,701      4,028

Pebblebrook Hotel Trust (Æ)

    350,208      7,221

Shangri-La Asia, Ltd.

    365,000      635

Starwood Hotels & Resorts Worldwide,
Inc. (Ñ)(ö)

    285,513      9,513

Sunstone Hotel Investors, Inc. (Æ)(ö)(Ñ)

    365,866      3,143
         
        106,132
         
Mixed Industrial/Office - 2.7%        

Liberty Property Trust (ö)

    1,367,947      41,585

PS Business Parks, Inc. (ö)(Ñ)

    134,349      6,433
         
        48,018
         
Office - 12.2%        

Alexandria Real Estate Equities, Inc. (ö)(Ñ)

    272,200      16,259

BioMed Realty Trust, Inc. (ö)(Ñ)

    626,938      9,134

Boston Properties, Inc. (ö)(Ñ)

    1,065,096      69,093

Brookfield Properties Corp. (Ñ)

    482,540      5,776

CapitaCommercial Trust (Æ)(ö)

    1,106,000      831

Commonwealth Property Office Fund (ö)

    1,435,866      1,152

Corporate Office Properties Trust SBI
MD (ö)(Ñ)

    55,748      1,990

DA Office Investment Corp. Class A (ö)

    135      263

Derwent London PLC (ö)

    69,288      1,436

Douglas Emmett, Inc. (ö)(Ñ)

    131,273      1,816

Fabege AB

    189,344      1,123

Great Portland Estates PLC (ö)

    192,031      860

Highwoods Properties, Inc. (ö)(Ñ)

    650,100      19,640

Hongkong Land Holdings, Ltd.

    835,600      3,897

HRPT Properties Trust (ö)(Ñ)

    156,100      1,041

ICADE (ö)

    17,864      1,711

ING Office Fund (ö)

    2,526,086      1,356

Japan Prime Realty Investment Corp. Class A (ö)

    167      321

Japan Real Estate Investment Corp.
Class A (ö)

    129      1,080

Kenedix Realty Investment Corp.
Class A (ö)

    179      508

Kilroy Realty Corp. (ö)(Ñ)

    954,494      27,575

Mack-Cali Realty Corp. (ö)(Ñ)

    566,252      18,471

SL Green Realty Corp. (ö)(Ñ)

    608,996      27,703
         
        213,036
         

 

Russell Real Estate Securities Fund   191

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Russell Real Estate Securities Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Principal
Amount ($)
or Shares		      Market
Value
$
       
Regional Malls - 12.2%        

Aeon Mall Co., Ltd.

    47,100      861

BR Malls Participacoes SA (Æ)

    78,324      852

CapitaMalls Asia, Ltd. (Æ)

    473,000      777

Macerich Co. (The) (ö)(Ñ)

    1,222,172      37,704

Simon Property Group, Inc. (ö)(Ñ)

    2,162,080      155,670

Taubman Centers, Inc. (ö)(Ñ)

    332,520      10,528

Westfield Group (ö)

    609,345      6,785
         
        213,177
         
Residential - 13.7%        

American Campus Communities, Inc. (ö)(Ñ)

    502,945      12,906

Apartment Investment & Management Co. Class A (ö)(Ñ)

    349,937      5,375

AvalonBay Communities, Inc. (ö)(Ñ)

    523,921      40,138

Boardwalk Real Estate Investment Trust (ö)

    40,465      1,415

Camden Property Trust (ö)(Ñ)

    824,560      31,968

China Overseas Land & Investment, Ltd.

    1,278,920      2,274

China Resources Land, Ltd.

    418,000      744

Colonial Properties Trust (ö)(Ñ)

    307,753      3,388

Deutsche Wohnen AG (Æ)

    74,613      763

Education Realty Trust, Inc. (ö)(Ñ)

    394,237      2,082

Equity Lifestyle Properties, Inc. (ö)(Ñ)

    159,231      7,694

Equity Residential (ö)(Ñ)

    2,631,855      84,351

Essex Property Trust, Inc. (ö)(Ñ)

    313,122      24,953

Home Properties, Inc. (ö)(Ñ)

    152,535      6,762

Mid-America Apartment Communities,
Inc. (ö)(Ñ)

    85,576      4,015

Post Properties, Inc. (ö)(Ñ)

    340,339      6,075

Shimao Property Holdings, Ltd.

    834,099      1,275

UDR, Inc. (ö)(Ñ)

    140,201      2,181

Unite Group PLC (Æ)

    189,993      875
         
        239,234
         
Self Storage - 6.3%        

Big Yellow Group PLC (Æ)(ö)

    163,701      818

Extra Space Storage, Inc. (ö)(Ñ)

    1,052,900      11,950

Public Storage (ö)

    1,161,335      91,955

Sovran Self Storage, Inc. (ö)

    104,259      3,534

U-Store-It Trust (ö)(Ñ)

    261,994      1,813
         
        110,070
         
Shopping Centers - 9.2%        

Acadia Realty Trust (ö)(Ñ)

    390,316      6,218

Alexander’s, Inc. (Æ)(ö)(Ñ)

    6,980      2,040

Aliansce Shopping Centers SA (Æ)

    89,273      415

Atrium European Real Estate, Ltd.

    130,463      797

Citycon OYJ

    113,431      452

Corio NV (ö)

    13,391      824

Developers Diversified Realty Corp. (ö)(Ñ)

    1,502,818      12,398

Federal Realty Investment Trust (ö)(Ñ)

    570,336      36,718

Hammerson PLC (ö)

    481,652      2,895

Inland Real Estate Corp. (ö)(Ñ)

    313,222      2,644

Kimco Realty Corp. (ö)(Ñ)

    2,411,473      30,433
     Principal
Amount ($)
or Shares		      Market
Value
$		  

Kite Realty Group Trust (ö)(Ñ)

    1,123,500      4,258   

Link REIT (The) (ö)

    503,103      1,208   

Primaris Retail Real Estate Investment Trust (ö)

    64,530      1,017   

Regency Centers Corp. (ö)(Ñ)

    1,110,193      37,180   

Retail Opportunity Investments
Corp. (Æ)(Ñ)

    604,465      6,220   

RioCan Real Estate Investment Trust (ö)

    50,435      900   

Tanger Factory Outlet Centers (ö)(Ñ)

    245,000      9,384   

Weingarten Realty Investors (ö)

    382,244      7,137   
           
        163,138   
           
Specialty - 7.3%        

Digital Realty Trust, Inc. (ö)(Ñ)

    1,042,449      50,037   

DuPont Fabros Technology, Inc. (ö)(Ñ)

    460,000      7,645   

Entertainment Properties Trust (ö)(Ñ)

    394,350      13,767   

Plum Creek Timber Co., Inc. (ö)(Ñ)

    1,073,622      38,833   

Rayonier, Inc. (ö)

    384,381      16,121   

Weyerhaeuser Co. (Ñ)

    57,736      2,304   
           
        128,707   
           
Total Common Stocks
(cost $1,414,287)		         1,692,650   
           
Short-Term Investments - 3.3%        

Russell U.S. Cash Management
Fund (£)

    57,691,535      57,692   
           
Total Short-Term Investments
(cost $57,692)		         57,692   
           
Other Securities - 27.1%        

Russell U.S. Cash Collateral Fund (×)

    278,125,985      278,126   

State Street Securities Lending Quality Trust (×)

    196,223,664      195,620   
           
Total Other Securities
(cost $474,350)		         473,746   
           
Total Investments - 127.0%
(identified cost $1,946,329)		         2,224,088   
           
Other Assets and Liabilities,
Net - (27.0%)		         (472,793 ) 
           
Net Assets - 100.0%         1,751,295   
           

A portion of the portfolio has been fair valued as of period end.


 

See accompanying notes which are an integral part of the Quarterly Report.

 

192   Russell Real Estate Securities Fund

Table of Contents

Russell Investment Company

Russell Real Estate Securities Fund

Schedule of Investments, continued — January 31, 2010 (Unaudited)

Amounts in thousands

 

Foreign Currency Exchange Contracts

Counterparty

    Amount
Sold		    Amount
Bought		    Settlement
Date		    Unrealized
Appreciation
(Depreciation)
$
                 

State Street Bank and Trust Company

    USD    8    BRL    14    02/02/10    —

State Street Bank and Trust Company

    USD    373    BRL    704    02/02/10    —

State Street Bank and Trust Company

    USD    5    EUR    3    02/01/10    —

State Street Bank and Trust Company

    USD    21    EUR    15    02/01/10    —

State Street Bank and Trust Company

    USD    240    HKD    1,865    02/01/10    —

State Street Bank and Trust Company

    AUD    151    USD    135    02/02/10    1

State Street Bank and Trust Company

    HKD    629    USD    81    02/01/10    —

State Street Bank and Trust Company

    HKD    2,211    USD    285    02/01/10    —
                   

Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts

             1
                   

 

 

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

 

       Market Value
Portfolio Summary      Level 1      Level 2      Level 3      Total
                   

Common Stocks

                    

Diversified

      $ 98,109      $ 64,096      $ —      $ 162,205

Free Standing Retail

        12,592        —        —        12,592

Health Care

        203,015        —        —        203,015

Industrial

        90,509        2,817        —        93,326

Lodging/Resorts

        105,497        635        —        106,132

Mixed Industrial/Office

        48,018        —        —        48,018

Office

        198,498        14,538        —        213,036

Regional Malls

        205,531        7,646        —        213,177

Residential

        233,303        5,931        —        239,234

Self Storage

        109,252        818        —        110,070

Shopping Centers

        156,962        6,176        —        163,138

Specialty

        128,707        —        —        128,707

Short-Term Investments

        —        57,692        —        57,692

Other Securities

        —        473,746        —        473,746
                                   

Total Investments

        1,589,993        634,095        —        2,224,088
                                   

Other Financial Instruments

                    

Foreign Currency Exchange Contracts

        1        —        —        1
                                   

Total Other Financial Instruments*

        1        —        —        1
                                   

 

* Other financial instruments not reflected in the Schedule of Investments, such as futures, forwards, and swap contracts which are valued at the unrealized appreciation/depreciation on the instruments.

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Real Estate Securities Fund   193

Table of Contents

Russell Investment Company

Russell Money Market Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

      Principal
Amount ($)
or Shares		      Rate
%		      Date
of
Maturity#		     

Value

$

                 
Domestic Commercial Paper - 1.9%                  

Straight-A Funding LLC

    6,000      Zero coupon      02/02/10      6,000

Straight-A Funding LLC

    5,455      Zero coupon      03/01/10      5,454
                   
Total Domestic Commercial Paper (amortized cost $11,454)                   11,454
                   
Municipal Bonds - 4.4%                  

New York Housing Financial Agency Revenue Bond (Ê)

    26,700      0.190      05/15/31      26,700
                   
Total Municipal Bonds (amortized cost $26,700)                   26,700
                   
Registered Investment Company Funds - 5.0 %                  

Merrill Lynch U.S. Government Mortgage Fund

    30,000,000                30,000
                   
Total Registered Investment Company Funds (cost $30,000)                   30,000
                   
United States Government Agencies - 52.2%                  

AID to INH Portugal Guaranteed Note, weekly demand (LIBOR Floater) (Ê)(Å)

    5,000      0.583      12/01/17      5,033

Fannie Mae Discount Notes

    25,000      Zero coupon      02/04/10      25,000

Fannie Mae Discount Notes

    3,000      Zero coupon      03/10/10      3,000

Federal Home Loan Bank Discount Corp.

    45,065      Zero coupon      02/01/10      45,064

Federal Home Loan Bank Discount Corp.

    23,300      Zero coupon      02/03/10      23,300

Federal Home Loan Bank Discount Corp.

    15,100      Zero coupon      02/05/10      15,100

Federal Home Loan Bank Discount Corp.

    14,000      Zero coupon      02/08/10      14,000

Federal Home Loan Bank Discount Corp.

    13,600      Zero coupon      02/10/10      13,600

Federal Home Loan Bank Discount Corp.

    6,000      Zero coupon      02/17/10      6,000

Federal Home Loan Bank Discount Corp.

    10,000      Zero coupon      02/22/10      10,000

Federal Home Loan Bank Discount Corp.

    10,000      Zero coupon      02/24/10      10,000

Federal Home Loan Bank Discount Corp.

    10,000      Zero coupon      03/03/10      9,999

Federal Home Loan Bank Discount Corp.

    14,862      Zero coupon      03/15/10      14,861

Federal Home Loan Bank Discount Corp.

    2,400      Zero coupon      03/17/10      2,400

Federal Home Loan Bank Discount Corp.

    8,000      Zero coupon      03/26/10      7,999

Federal Home Loan Bank Discount Corp.

    8,000      Zero coupon      07/12/10      7,994

Federal Home Loan Mortgage Corp. Discount Notes

    5,400      Zero coupon      02/16/10      5,400

Federal Home Loan Mortgage Corp. Discount Notes

    10,000      Zero coupon      02/19/10      10,000

Federal Home Loan Mortgage Corp. Discount Notes

    15,000      Zero coupon      02/22/10      14,999

Federal Home Loan Mortgage Corp. Discount Notes

    10,000      Zero coupon      07/26/10      9,991

Freddie Mac Discount Notes

    15,000      Zero coupon      02/08/10      15,000

Freddie Mac Discount Notes

    3,000      Zero coupon      02/18/10      3,000

Freddie Mac Discount Notes

    15,000      Zero coupon      03/01/10      14,999

Puttable Floating Option Taxable Receipts (Ê)(Þ)

    27,000      0.930      04/01/26      27,000
                   
Total United States Government Agencies (amortized cost $313,739)                   313,739
                   
United States Treasury - 35.3%                  

United States Treasury Bills

    125,000      Zero coupon      02/11/10      124,991

United States Treasury Bills

    70,000      Zero coupon      02/18/10      69,992

United States Treasury Bills

    17,000      Zero coupon      04/01/10      16,997
                   
Total United States Treasury (amortized cost $211,980)                   211,980
                   
Total Investments - 98.8% (amortized cost $593,873)(†)                   593,873
Other Assets and Liabilities, Net - 1.2%                   7,316
                   
Net Assets - 100.0%                   601,189
                   

 

See accompanying notes which are an integral part of the Quarterly Report.

 

194   Russell Money Market Fund

Table of Contents

Russell Investment Company

Russell Money Market Fund

Presentation of Portfolio Holdings — January 31, 2010 (Unaudited)

Amounts in thousands

 

       Market Value
Portfolio Summary      Level 1      Level 2      Level 3      Total
                   

Domestic Commercial Paper

      $ —      $ 11,454      $ —      $ 11,454

Municipal Bonds

        —        26,700        —        26,700

Registered Investment Company Funds

        30,000        —        —        30,000

United States Government Agencies

        —        313,739        —        313,739

United States Treasury

        —        211,980        —        211,980
                                   

Total Investments

        30,000        563,873        —        593,873
                                   

For a description of the levels see note 2 in the Notes to Quarterly Report.

 

 

See accompanying notes which are an integral part of the Quarterly Report.

 

Russell Money Market Fund   195

Table of Contents

Russell Investment Company

Russell Funds

Notes to Schedule of Investments — January 31, 2010 (Unaudited)

 

 

 

Footnotes:

(Æ) Nonincome-producing security.
(Ï) Forward commitment.
(Ê) Adjustable or floating rate security. Rate shown reflects rate in effect at period end.
(ƒ) Perpetual floating rate security. Rate shown reflects rate in effect at period end.
(ö) Real Estate Investment Trust (REIT).
(µ) Bond is insured by a guarantor.
(ß) Illiquid security.
(Ø) In default.
(ç) At amortized cost, which approximates market.
(ž) Rate noted is yield-to-maturity from date of acquisition.
(æ) 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.
(§) 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.
(×) The security is purchased with the cash collateral from the securities loaned.
(Ñ) All or a portion of the shares of this security are on loan.
(Þ) Restricted security. Security may have contractual restrictions on resale, may have been offered in a private placement transaction, and may not be registered under the Securities Act of 1933.
(Å) Illiquid and restricted security.
(å) Currency balances were held in connection with futures contracts purchased (sold), options written, or swaps entered into by the Fund. See Note 2.
(û) All or a portion of the shares of this security are held as collateral in connection with securities sold short.
(†) The identified cost for Federal Income Tax purposes is the same as shown above.
(#) All securities with a maturity greater than thirteen months have a demand feature or an optimal or mandatory put, or are prefunded, 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 portion of this asset has been segregated to cover the liability caused by the valuation of the SLQT.

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

BBSW - Bank Bill Swap Reference Rate

EMU - European Economic and Monetary Union

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

UK - United Kingdom

 

196   Notes to Schedules of Investments

Table of Contents

Russell Investment Company

Russell Funds

Notes to Schedule of Investments, continued — January 31, 2010 (Unaudited)

 

 

 

Foreign Currency Abbreviations:

 

ARS - Argentine peso   HUF - Hungarian forint   PKR - Pakistani rupee
AUD - Australian dollar   IDR - Indonesian rupiah   PLN - Polish zloty
BRL - Brazilian real   ILS - Israeli shekel   RUB - Russian ruble
CAD - Canadian dollar   INR - Indian rupee   SEK - Swedish krona
CHF - Swiss franc   ISK - Iceland krona   SGD - Singapore dollar
CLP - Chilean peso   ITL - Italian lira   SKK - Slovakian koruna
CNY - Chinese renminbi yuan   JPY - Japanese yen   THB - Thai baht
COP - Colombian peso   KES - Kenyan schilling   TRY - Turkish lira
CRC - Costa Rica colon   KRW - South Korean won   TWD - Taiwanese dollar
CZK - Czech koruna   MXN - Mexican peso   USD - United States dollar
DKK - Danish krone   MYR - Malaysian ringgit   VEB - Venezuelan bolivar
EGP - Egyptian pound   NOK - Norwegian krone   VND - Vietnam dong
EUR - Euro   NZD - New Zealand dollar   ZAR - South African rand
GBP - British pound sterling   PEN - Peruvian nouveau sol  
HKD - Hong Kong dollar   PHP - Philippine peso  

 

Notes to Schedules of Investments   197

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report — January 31, 2010 (Unaudited)

 

 

 

1.   Organization

Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 37 different investment portfolios referred to as Funds. The Quarterly Report reports on 16 of these Funds (each a “Fund” and collectively 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 a Second Amended and Restated Master Trust Agreement dated October 1, 2008. The Investment Company’s Master Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest.

 

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 accounting principles generally accepted in the United Sates of America (“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 which include market and fair value procedures. Russell 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 such short-term debt obligations or money market fund securities. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell Fund Services Company (“RFSC”).

Ordinarily, the Funds value each portfolio security based on market quotations provided by independent pricing services or alternative pricing services or dealers (when permitted by the market value procedures). Pricing services may utilize evaluated pricing models which apply available market information through the use of benchmark curves, benchmarking of similar securities, sector groupings, spread adjustments and ratings. Generally, Fund securities are valued at the close of the principal exchange on which they are traded as follows:

 

  •  

U.S. listed equities, equity and fixed income options and rights/warrants: Last sale price; last bid price if no last sale price.

 

  •  

U.S. 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 last sale price.

 

  •  

Municipal bonds, U.S. bonds, Eurobonds/foreign bonds: Evaluated bid price; broker quote if no evaluated bid price.

 

  •  

Futures: Settlement price.

 

  •  

Options on futures: Last sale price; settlement price if no last sale price.

 

  •  

Bank loans and forwards: Mean between bid and ask 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 is 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 foreign securities exchange or a foreign over the counter market 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, in accordance with the fair value procedures. 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 Board believes reflects fair value. The fair value procedures may involve subjective judgments (e.g. trade information, news, broker quotes) as to the fair value of securities. The use of 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.

 

198   Notes to Quarterly Report

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

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. Funds that invest primarily in frequently traded exchange-listed securities will use fair value pricing in limited circumstances since reliable market quotations will often be readily available. Funds that invest in foreign securities are likely to use fair value pricing more often since significant events may occur between the close of foreign markets and the time of pricing which would trigger fair value pricing of the foreign securities. 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 U.S. securities market (defined in the fair value procedures as the movement by a single major U.S. index 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.

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, since foreign securities can trade on non-business days.

Fair value of securities is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. To increase consistency and comparability in fair value measurement, the fair value hierarchy was established to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The fair value hierarchy of inputs is summarized in the three broad levels listed below.

 

  •  

Level 1 — quoted prices (unadjusted) in active markets for identical investments

 

  •  

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

  •  

Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The levels associated with valuing the Funds’ investments for the period ended January 31, 2010 are disclosed in the Presentation of Portfolio Holdings.

Investment Transactions

Investment 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. The fixed income funds classify gains and losses realized on prepayments received on mortgage-backed securities as part of interest income. 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 U.S. dollars. Foreign currency amounts and transactions of the Funds are translated into U.S. 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.

 

Notes to Quarterly Report   199

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Net realized gains or losses from foreign currency-related transactions arise from: sales and maturities of short-term securities; sales of foreign currencies; currency gains or losses realized between the trade and settlement dates on securities transactions; the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized gains or losses from foreign currency-related transactions arise from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in the exchange rates.

The Funds do not isolate that portion of the results of operations of the Funds that arises as a result of changes in exchange rates from that portion that arises from changes in market prices of investments during the year. Such fluctuations are included with the net realized and unrealized gain or loss from investments. However, for federal income tax purposes the Funds do isolate the effects of changes in foreign exchange rates from the fluctuations arising from changes in market prices for realized gain (or loss) on debt obligations.

Derivatives

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, 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 three ways: exposing cash reserves to markets, hedging and return enhancement. In addition, certain Funds may enter into foreign exchange contracts for trade settlement purposes. The Funds, other than the Russell Real Estate Securities Fund and Russell Tax Exempt Bond Fund, may pursue their strategy of being fully invested by exposing cash reserves to the performance of appropriate markets by purchasing securities and/or derivatives. This is intended to cause the Funds to perform as though cash reserves were actually invested in those markets. Hedging is also used by the Funds to limit or control risks, such as adverse movements in exchange rates and interest rates. Return enhancement can be accomplished through the use of derivatives in a Fund. By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio characteristics that assist them in meeting their investment objectives. Depending on how the derivatives are structured and utilized, the risks associated with them may vary widely. These risks are generally categorized as market risk, liquidity risk and counterparty or credit risk.

The Funds’ period end derivatives, as presented in the Schedule of Investments or the tables following, generally are indicative of the volume of their derivative activity during the period ended January 31, 2010.

 

200   Notes to Quarterly Report

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

The fair values of the Funds with derivative instruments categorized by risk exposure for the period ended January 31, 2010 were as follows:

 

Amounts in thousands   Russell U.S. Core
Equity Fund		   Russell U.S.
Quantitative Equity Fund		   Russell U.S.
Growth Fund
Derivatives not accounted for as
hedging instruments		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts
                       
Location: Statement of Assets and Liabilities - Assets                        

Investments, at market value

   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —

Unrealized appreciation on foreign currency exchange contracts

     —     —     —     —     —     —     —     —     —     —     —     —

Daily variation margin on futures contracts*

     —     —     —     —     —     —     —     —     —     —     —     —

Interest rate swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Credit default swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Unrealized appreciation on index swap contracts

     —     —     —     —     —     —     —     —     —     —     —     —
                                                                       

Total

   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —
                                                                       
Location: Statement of Assets and Liabilities - Liabilities                        

Unrealized depreciation on foreign currency exchange contracts

   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —

Daily variation margin on futures contracts*

     —     11,679     —     —     —     2,960     —     —     —     32     —     —

Interest rate swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Credit default swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Unrealized depreciation on index swap contracts

     —     —     —     —     —     —     —     —     —     —     —     —

Options written, at market value

     —     —     —     —     —     —     —     —     —     —     —     —
                                                                       

Total

   $ —   $ 11,679   $ —   $ —   $ —   $ 2,960   $ —   $ —   $ —   $ 32   $ —   $ —
                                                                       

 

Notes to Quarterly Report   201

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Amounts in thousands   Russell U.S
Value Fund		   Russell U.S.
Small & Mid Cap Fund		   Russell International
Developed Markets Fund
Derivatives not accounted for as
hedging instruments		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts
                       
Location: Statement of Assets and Liabilities - Assets                        

Investments, at market value

   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —

Unrealized appreciation on foreign currency exchange contracts

     —     —     —     —     —     2     —     —     —     —     5,862     —

Daily variation margin on futures contracts*

     —     —     —     —     —     —     —     —     —     1,796     —     —

Interest rate swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Credit default swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Unrealized appreciation on index swap contracts

     —     —     —     —     —     —     —     —     —     —     —     —
                                                                       

Total

   $ —   $ —   $ —   $ —   $ —   $ 2   $ —   $ —   $ —   $ 1,796   $ 5,862   $ —
                                                                       
Location: Statement of Assets and Liabilities - Liabilities                        

Unrealized depreciation on foreign currency exchange contracts

   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ 14,293   $ —

Daily variation margin on futures contracts*

     —     185     —     —     —     —     —     —     —     12,451     —     —

Interest rate swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Credit default swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Unrealized depreciation on index swap contracts

     —     —     —     —     —     —     —     —     —     —     —     —

Options written, at market value

     —     —     —     —     —     —     —     —     —     —     —     —
                                                                       

Total

   $ —   $ 185   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ 12,451   $ 14,293   $ —
                                                                       

 

202   Notes to Quarterly Report

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Amounts in thousands   Russell Global
Equity Fund		   Russell Emerging
Markets Fund		   Russell Tax-Managed
U.S. Large Cap Fund
Derivatives not accounted for as
hedging instruments		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts
                       
Location: Statement of Assets and Liabilities - Assets                        

Investments, at market value

   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —

Unrealized appreciation on foreign currency exchange contracts

     —     —     262     —     —     —     958     —     —     —     —     —

Daily variation margin on futures contracts*

     —     —     —     —     —     —     —     —     —     —     —     —

Interest rate swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Credit default swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Unrealized appreciation on index swap contracts

     —     —     —     —     —     —     —     —     —     —     —     —
                                                                       

Total

   $ —   $ —   $ 262   $ —   $ —   $ —   $ 958   $ —   $ —   $ —   $ —   $ —
                                                                       
Location: Statement of Assets and Liabilities - Liabilities                        

Unrealized depreciation on foreign currency exchange contracts

   $ —   $ —   $ 948   $ —   $ —   $ —   $ 1,874   $ —   $ —   $ —   $ —   $ —

Daily variation margin on futures contracts*

     —     1,490     —     —     —     1,150     —     —     —     351     —     —

Interest rate swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Credit default swap contracts, at market value

     —     —     —     —     —     —     —     —     —     —     —     —

Unrealized depreciation on index swap contracts

     —     —     —     —     —     664     —     —     —     —     —     —

Options written, at market value

     —     —     —     —     —     —     —     —     —     —     —     —
                                                                       

Total

   $ —   $ 1,490   $ 948   $ —   $ —   $ 1,814   $ 1,874   $ —   $ —   $ 351   $ —   $ —
                                                                       

 

Notes to Quarterly Report   203

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Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Amounts in thousands   Russell Tax-Managed
U.S. Mid & Small Cap Fund		   Russell Strategic
Bond Fund		   Russell Investment
Grade Bond Fund
Derivatives not accounted for as
hedging instruments		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts		   Credit
Contracts		   Equity
Contracts		   Foreign
Currency
Contracts		   Interest
Rate
Contracts
                       
Location: Statement of Assets and Liabilities - Assets                        

Investments, at market value

   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —

Unrealized appreciation on foreign currency exchange contracts

     —     —     —     —     —     —     10,053     —     —     —     761     —

Daily variation margin on futures contracts*

     —     —     —     —     —     —     —     12,173     —     —     —     3,269

Interest rate swap contracts, at market value

     —     —     —     —     —     —     —     19,004     —     —     —     568

Credit default swap contracts, at market value

     —     —     —     —     12,902     —     —     —     2,289     —     —     —

Unrealized appreciation on index swap contracts

     —     —     —     —     —     —     —     —     —     —     —     —
                                                                       

Total

   $ —   $ —   $ —   $ —   $ 12,902   $ —   $ 10,053   $ 31,177   $ 2,289   $ —   $ 761   $ 3,837
                                                                       
Location: Statement of Assets and Liabilities - Liabilities                        

Unrealized depreciation on foreign currency exchange contracts

   $ —   $ —   $ —   $ —   $ —   $ —   $ 9,047   $ —   $ —   $ —   $ 499   $ —

Daily variation margin on futures contracts*

     —     77     —     —     —     —     —     704     —     —     —     —

Interest rate swap contracts, at market value

     —     —     —     —     —     —     —     770     —     —     —     136

Credit default swap contracts, at market value

     —     —     —     —     30,860     —     —     —     4,811     —     —     —

Unrealized depreciation on index swap contracts

     —     —     —     —     —     —     —     —     —     —     —     —

Options written, at market value

     —     —     —     —     —     —     —     1,449     —     —     —     394
                                                                       

Total

   $ —   $ 77   $ —   $ —   $ 30,860   $ —   $ 9,047   $ 2,923   $ 4,811   $ —   $ 499   $ 530
                                                                       

 

Amounts in thousands    Russell Short Duration
Bond Fund		    Russell Real Estate
Securities Fund
Derivatives not accounted for as hedging instruments    Credit
Contracts		    Equity
Contracts		    Foreign
Currency
Contracts		    Interest
Rate
Contracts		    Credit
Contracts		    Equity
Contracts		    Foreign
Currency
Contracts		    Interest
Rate
Contracts
                       
Location: Statement of Assets and Liabilities - Assets                        

Investments, at market value

    $ —    $ —    $ —    $ —    $ —    $ —    $ —    $ —

Unrealized appreciation on foreign currency exchange contracts

      —      —      492      —      —      —      1      —

Daily variation margin on futures contracts*

      —      —      —      855      —      —      —      —

Interest rate swap contracts, at market value

      —      —      —      433      —      —      —      —

Credit default swap contracts, at market value

      409      —      —      —      —      —      —      —

Unrealized appreciation on index swap contracts

      —      —      —      —      —      —      —      —
                                                       

Total

    $ 409    $ —    $ 492    $ 1,288    $ —    $ —    $ 1    $ —
                                                       
Location: Statement of Assets and Liabilities - Liabilities                        

Unrealized depreciation on foreign currency exchange contracts

    $ —    $ —    $ 488    $ —    $ —    $ —    $ —    $ —

Daily variation margin on futures contracts*

      —      —      —      195      —      —      —      —

Interest rate swap contracts, at market value

      —      —      —      23      —      —      —      —

Credit default swap contracts, at market value

      125      —      —      —      —      —      —      —

Unrealized depreciation on index swap contracts

      —      —      —      —      —      —      —      —

Options written, at market value

      —      —      —      205      —      —      —      —
                                                       

Total

    $ 125    $ —    $ 488    $ 423    $ —    $ —    $ —    $ —
                                                       

 

204   Notes to Quarterly Report

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Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Foreign Currency Exchange Contracts

In connection with investment transactions consistent with the Funds’ investment objectives and strategies, certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts (“contracts”). From time to time certain 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 Statements 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.

For the period ended January 31, 2010, the following funds entered into foreign currency exchange contracts primarily for the strategies listed below:

 

Funds    Strategies

Russell International Developed Markets

    Return enhancement, hedging, exposing cash reserves and trade settlement

Russell Global Equity

    Exposing cash reserves and trade settlement

Russell Emerging Markets

    Exposing cash reserves

Russell Strategic Bond

    Return enhancement and hedging

Russell Investment Grade Bond

    Return enhancement and hedging

Russell Short Duration Bond

    Return enhancement and hedging

Russell Real Estate Securities

    Trade settlement

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 expose cash reserves to markets.

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 on the Statements of Operations.

The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statements of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Funds’ exposure to market risk. The risks may be caused by an imperfect correlation between movements in the price of the instrument and the price of the underlying securities and interest rates.

A Fund may enter into a swaption (swap option). In a swaption, the buyer gains the right but not the obligation to enter into a specified swap agreement with the issuer on a specified future date. The writer of the contract receives the premium and bears the risk of unfavorable changes in the preset rate on the underlying interest rate swap. Unrealized gains/losses on swaptions are reflected in investment assets and investment liabilities in the Fund’s Statement of Assets and Liabilities.

For the period ended January 31, 2010, the Funds purchased/sold options primarily for the strategies listed below:

 

Funds    Strategies

Russell Strategic Bond Fund

    Return enhancement and hedging

Russell Investment Grade Bond Fund

    Return enhancement and hedging

Russell Short Duration Bond Fund

    Return enhancement and hedging

 

Notes to Quarterly Report   205

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Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Futures Contracts

The Funds 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.

For the period ended January 31, 2010, the following funds entered into future contracts primarily for the strategies listed below:

 

Funds    Strategies

Russell U.S. Core Equity

    Exposing cash reserves

Russell U.S. Quantitative Equity

    Exposing cash reserves

Russell U.S. Growth

    Exposing cash reserves

Russell U.S. Value

    Exposing cash reserves

Russell U.S. Small & Mid Cap

    Exposing cash reserves

Russell International Developed Markets

    Return enhancement and exposing cash reserves

Russell Global Equity

    Exposing cash reserves

Russell Emerging Markets

    Exposing cash reserves

Russell Tax-Managed U.S. Large Cap

    Exposing cash reserves

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

    Exposing cash reserves

Russell Strategic Bond

    Return enhancement, hedging and exposing cash reserves

Russell Investment Grade Bond

    Return enhancement, hedging and exposing cash reserves

Russell Short Duration Bond

    Return enhancement, hedging and exposing cash reserves

As of January 31, 2010, the Funds had cash collateral balances in connection with futures contracts purchased (sold) as follows:

 

      Cash Collateral
  

Russell U.S. Quantitative Equity Fund

    $ 15,000,000

Russell U.S. Growth Fund

      400,000

Russell U.S. Value Fund

      625,000

Russell U.S. Small & Mid Cap Fund

      5,500,000

Russell International Developed Markets Fund

      33,667,803

Russell Global Equity Fund

      3,700,000

Russell Emerging Markets Fund

      6,226,807

Russell Tax-Managed U.S. Large Cap Fund

      1,500,000

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

      700,000

Russell Short Duration Bond Fund

      105,700

Russell Investment Grade Bond Fund

      523,400

Russell Strategic Bond Fund

      1,601,000

Swap Agreements

The Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether they are hedging their assets or their liabilities, and will usually enter into swaps on a net basis, i.e., the two payment streams are netted out, with the Funds receiving or paying, 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).

Certain Funds may enter into several different types of agreements including interest rate, credit default and currency swaps. The Funds may enter into index swap agreements to expose cash reserves to markets or to effect investment transactions consistent with those Funds’ investment objectives and strategies. Interest rate swaps are a counterparty agreement, can be customized to meet each party’s needs, and involve 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 each paying the other a series of interest payments that are based on the principal cash flow. At maturity the principal amounts are returned. 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.

 

206   Notes to Quarterly Report

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Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

The Funds expect to enter into these transactions primarily to preserve a return or spread on a particular investment or portion of their portfolios or to protect against any increase in the price of securities they anticipate purchasing at a later date or for return enhancement. The net amount of the excess, if any, of the Funds’ obligations over their entitlements with respect to each swap will be accrued on a daily basis and an amount of cash or liquid high-grade debt securities having an aggregate net asset value at least equal to the accrued excess will be segregated. To the extent that the Funds enter into swaps on other than a net basis, the amount earmarked on the Funds’ records will be the full amount of the Funds’ 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 Funds will have contractual remedies pursuant to the agreement related to the transaction.

A Fund may not receive the expected amount under a swap agreement if the other party to the agreement defaults or becomes bankrupt. The market for swap agreements is largely unregulated. The Funds may enter into swap agreements with counterparties that meet Russell Investment Management Company (“RIMCo”) credit quality limitations. The Funds will not enter into any swap unless the counterparty has a minimum senior unsecured credit rating or long term counterparty credit rating, including reassignments, of A- or better as defined by Standard & Poor’s or an equivalent rating from any nationally recognized statistical rating organization (using highest of split ratings) at the time of entering into such transaction.

Swap agreements generally are entered into by “eligible contract participants” and in compliance with certain other criteria necessary to render them excluded from regulation under the Commodity Exchange Act (“CEA”) and, therefore not subject to regulation as futures or commodity option transactions under the CEA.

As of January 31, 2010, the Funds had cash collateral balances in connection with swap contracts purchased (sold) as follows:

 

     Cash Collateral    Due to
Broker
     

Russell Emerging Markets Fund

    $ 3,500,000    $ —

Russell Strategic Bond Fund

      27,824,000      27,462,150

Russell Investment Grade Bond Fund

      3,579,000      1,140,000

Russell Short Duration Bond Fund

      —      770,000

Credit Default Swaps

The fixed income funds may enter into credit default swaps. A credit default swap can refer to corporate issues, asset-backed securities or an index of assets, each known as the reference entity or underlying asset. The fixed income funds may act as either the buyer or the seller of a credit default swap involving one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. Depending upon the terms of the contract, the credit default swap may be closed via physical settlement. However, due to the possible or potential instability in the market, there is a risk that the fixed income funds may be unable to deliver the underlying debt security to the other party to the agreement. Additionally, the fixed income funds may not receive the expected amount under the swap agreement if the other party to the agreement defaults or becomes bankrupt. In an unhedged credit default swap, the fixed income funds enter into a credit default swap without owning the underlying asset or debt issued by the reference entity. Credit default swaps allow the fixed income funds to acquire or reduce credit exposure to a particular issuer, asset or basket of assets.

As the seller of protection in a credit default swap, the fixed income funds would be required to pay the par or other agreed-upon value (or otherwise perform according to the swap contract) of a reference debt obligation to the counterparty in the event of a default (or other specified credit event); the counterparty would be required to surrender the reference debt obligation. In return, the fixed income funds would receive from the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no credit event occurs, the fixed income funds would keep the stream of payments and would have no payment obligations. As a seller of protection, the fixed income funds would effectively add leverage to its portfolio because in addition to its total net assets, that Fund would be subject to investment exposure on the notional amount of the swap.

The fixed income funds may also purchase protection via credit default swap contracts in order to offset the risk of default of debt securities held in its portfolio, in which case the fixed income funds would function as the counterparty referenced in the preceding paragraph.

If a credit event occurs on a corporate issue and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). The fixed income funds may use credit default swaps on corporate issues to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the fixed income funds own or have exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood (as measured by the credit default swap’s spread) of a particular issuer’s default.

 

Notes to Quarterly Report   207

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Unlike credit default swaps on corporate issues, deliverable obligations for credit default swaps on asset-backed securities in most instances would be limited to the specific referenced obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other write-down or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement generally will be adjusted by corresponding amounts. The fixed income funds may use credit default swaps on asset-backed securities to provide a measure of protection against defaults (or other defined credit events) of the referenced obligation or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default (or other defined credit events).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. Traders may use credit-default swaps on indices to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues as of period end are disclosed in the Schedules of Investments and generally serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default (or other defined credit event) for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of entering into a credit default swap and may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market values, in absolute terms when compared to the notional amount of the swap, generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future payments (undiscounted) that a fixed income fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of January 31, 2010 for which a fixed income fund is the seller of protection are disclosed in the Schedules of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a fixed income fund for the same referenced entity or entities.

Credit default swaps could result in losses if the fixed income funds do not correctly evaluate the creditworthiness of the company or companies on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the fixed income funds had invested in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject to illiquidity risk and counterparty. The fixed income funds will generally incur a greater degree of risk when it sells a credit default swap than when it purchases a credit default swap. As a buyer of a credit default swap, the fixed income funds may lose its investment and recover nothing should a credit event fail to occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event were to occur, the value of any deliverable obligation received by the fixed income funds, coupled with the upfront or periodic payments previously received, may be less than what it pays to the buyer, resulting in a loss of value to the fixed income funds.

If the creditworthiness of the fixed income funds’ swap counterparty declines, the risk that the counterparty may not perform could increase, potentially resulting in a loss to the fixed income funds. To limit the counterparty risk involved in swap agreements, the fixed income funds will only enter into swap agreements with counterparties that meet certain standards of creditworthiness. Although there can be no assurance that the fixed income funds will be able to do so, the fixed income funds may be able to reduce or eliminate its exposure under a swap agreement either by assignment or other disposition, or by entering into an offsetting swap agreement with the same party or another creditworthy party. The fixed income funds may have limited ability to eliminate its exposure under a credit default swap if the credit of the reference entity or underlying asset has declined.

 

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For the period ended January 31, 2010, the Funds entered into credit default swaps primarily for the strategies listed below:

 

Funds    Strategies

Russell Strategic Bond

    Return enhancement and hedging

Russell Investment Grade Bond

    Return enhancement and hedging

Russell Short Duration Bond

    Return enhancement and hedging

Interest Rate Swaps

The use of interest rate swaps is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If a money manager using this technique is incorrect in its forecast of market values, interest rates and other applicable factors, the investment performance of a Fund might diminish compared to what it would have been if this investment technique were not used.

Interest rate swaps do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that the Funds are contractually obligated to make. If the other party to an interest rate swap defaults, the Funds’ risk of loss consists of the net amount of interest payments that the Funds are contractually entitled to receive. Since interest rate swaps are individually negotiated, the Funds expect to achieve an acceptable degree of correlation between their rights to receive interest on their portfolio securities and their rights and obligations to receive and pay interest pursuant to interest rate swaps.

For the period ended January 31, 2010, the Funds entered into interest rate swaps primarily for the strategies listed below:

 

Funds    Strategies

Russell Strategic Bond

    Return enhancement and hedging

Russell Investment Grade Bond

    Return enhancement and hedging

Russell Short Duration Bond

    Return enhancement and hedging

Index Swaps

Certain Funds may enter into index swap agreements to expose cash reserves to markets 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).

For the period ended January 31, 2010, the Funds entered into index swaps primarily for the strategies listed below:

 

Funds    Strategies

Russell Emerging Markets

    Exposing cash reserves
  
  

ISDA Master Agreements

The Funds are parties to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) with counterparties that govern transactions in over-the-counter derivative and foreign exchange contracts entered into by the Funds and those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to early terminate could be material to the financial statements.

Loan Agreements

The Russell Strategic Bond, Russell Investment Grade Bond and Russell Short Duration Bond Funds may invest in direct debt instruments which are interests in amounts owed by corporate, governmental, or other borrowers to lenders or lending syndicates. The Funds’ investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Funds have the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan

 

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agreement and only upon receipt by the agent of payments from the borrower. The Funds generally have no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Funds may be subject to the credit risk of both the borrower and the agent that is selling the loan agreement. When the Funds purchase assignments from agents they acquire direct rights against the borrower on the loan. At the period ended January 31, 2010, the Russell Strategic Bond Fund had $4,000,000 in unfunded loan commitments.

Short Sales

The Russell U.S. 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 must return 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 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 other 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 section 7 and 8 of the Securities Exchange Act of 1934, as amended; or (b) otherwise cover its short position in accordance with positions taken by the staff of the Securities and Exchange Commission (e.g., taking an offsetting long position in the security sold short.) As of January 31, 2010, $1,259,906,188 was held as collateral.

Investments in Emerging Markets

Investing in emerging markets may involve special risks and considerations 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.

Repurchase Agreements

The fixed income funds and the Russell Money Market Fund may enter into repurchase agreements. A repurchase agreement is an agreement under which the Fund acquires a fixed income security from a commercial bank, broker or dealer and simultaneously agrees to resell such security to the seller at an agreed upon price and date (normally 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 the custodian bank until repurchased. In addition, RIMCo will monitor the Fund’s repurchase agreement transactions generally and will evaluate the credit worthiness of any bank, broker or dealer party to a repurchase agreement with the Fund. A Fund will not invest more than 15% (10% in the case of the Russell Money Market Fund) of its net assets (taken at current market value) in repurchase agreements maturing in more than seven days.

Mortgage-Related and Other Asset-Backed Securities

Certain Funds may invest in mortgage or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities and other securities that directly or indirectly represent a participation in, or are secured by a payable from, mortgage loans on real property. The value of a Fund’s mortgage-backed securities (“MBS”) may be affected by, among other things, changes or perceived changes in interest rates, factors concerning the interests in and structure

 

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of the issuer or the originator of the mortgage, or the quality of the underlying assets. The quality and value of the underlying assets may decline, or default. This has become an increasing risk for collateral related to sub-prime, Alt-A and non-conforming mortgage loans, especially in a declining residential real estate market. In addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole.

MBS often have stated maturities of up to thirty years when they are issued, depending upon the length of the mortgages underlying the securities. In practice however, unscheduled or early payments of principal and interest on the underlying mortgages may make the securities’ effective maturity shorter than this, and the prevailing interest rates may be higher or lower than the current yield of a Fund’s portfolio at the time the Fund receives the payments for reinvestment.

Rising or high interest rates may result in slower than expected principal payments which may tend to extend the duration of MBS, making them more volatile and more sensitive to changes in interest rates. This is known as extension risk.

MBS may have less potential for capital appreciation than comparable fixed income securities due to the likelihood of increased prepayments of mortgages resulting from foreclosures or declining interest rates. These foreclosed or refinanced mortgages are paid off at face value (par) or less, causing a loss, particularly for any investor who may have purchased the security at a premium or a price above par. In such an environment, this risk limits the potential price appreciation of these securities.

Through its investments in MBS, including those that are issued by private issuers, the Funds have exposure to subprime loans, Alt-A loans and non-conforming loans as well as to the mortgage and credit markets generally. Private issuers include commercial banks, savings associations, mortgage companies, investment banking firms, finance companies and special purpose finance entities (called special purpose vehicles or SPVs) and other entities that acquire and package mortgage loans for resale as MBS. These privately issued non-governmental MBS may offer higher yields than those issued by government entities, but also may be subject to greater price changes than governmental issues. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their loans. Alt-A loans refer to loans extended to borrowers who have incomplete documentation of income, assets, or other variables that are important to the credit underwriting processes. Nonconforming mortgages are loans that do not meet the standards that allow purchase by government-sponsored enterprises. MBS with exposure to subprime loans, Alt-A loans or non-conforming loans have had in many cases higher default rates than those loans that meet government underwriting requirements. The risk of non-payment is greater for MBS that are backed by mortgage pools that contain subprime, Alt-A and non-conforming loans, but a level of risk exists for all loans.

Unlike MBS issued or guaranteed by the U.S. government or a government sponsored entity (e.g., Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corporation)), MBS issued by private issuers do not have a government or government-sponsored entity guarantee, but may have credit enhancements provided by external entities such as banks or financial institutions or achieved through the structuring of the transaction itself. Examples of such credit support arising out of the structure of the transaction include the issue of senior and subordinated securities (e.g., the issuance of securities by an SPV in multiple classes or “tranches,” with one or more classes being senior to other subordinated classes as to the payment of principal and interest, with the result that defaults on the underlying mortgage loans are borne first by the holders of the subordinated class); creation of “reserve funds” (in which case cash or investments, sometimes funded from a portion of the payments on the underlying mortgage loans, are held in reserve against future losses); and “overcollateralization” (in which case the scheduled payments on, or the principal amount of, the underlying mortgage loans exceeds that required to make payment on the securities and pay any servicing or other fees). However, there can be no guarantee that credit enhancements, if any, will be sufficient to prevent losses in the event of defaults on the underlying mortgages loans. In addition, MBS that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgage that are applicable to those MBS that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private MBS may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored MBS and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon rates and maturities of the underlying mortgage loans in a private-label MBS pool may vary to a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans.

Privately issued MBS are not traded on an exchange and there may be a limited market for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without an active trading market, MBS held in a Fund’s portfolio may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.

 

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Asset-backed securities may include MBS, loans, receivables or other assets. The value of the Funds’ asset-backed securities may be affected by, among other things, actual or perceived changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the receivables, the market’s assessment of the quality of underlying assets or actual or perceived changes in the credit worthiness of the individual borrowers, the originator, the servicing agent or the financial institution providing the credit support.

Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities. Rising or high interest rates tend to extend the duration of asset-backed securities, making them more volatile and more sensitive to changes in interest rates. The underlying assets are sometimes subject to prepayments which can shorten the security’s weighted average life and may lower its return. Defaults on loans underlying asset-backed securities have become an increasing risk for asset-backed securities that are secured by home-equity loans related to sub-prime, Alt-A or non-conforming mortgage loans, especially in a declining residential real estate market.

Asset-backed securities (other than MBS) present certain risks that are not presented by MBS. Primarily, these securities may not have the benefit of any security interest in the related assets. Credit card receivables are generally unsecured and the debtors are entitled to the protection of a number of state and federal consumer credit laws, many of which give such debtors the right to set off certain amounts owed on the credit cards, thereby reducing the balance due. There is the possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on these securities. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. To lessen the effect of failures by obligors on underlying assets to make payments, the securities may contain elements of credit support which fall into two categories: (i) liquidity protection, and (ii) protection against losses resulting from ultimate default by an obligor on the underlying assets. Liquidity protection refers to the provision of advances, generally by the entity administering the pool of assets, to ensure that the receipt of payments on the underlying pool occurs in a timely fashion. Protection against losses results from payment of the insurance obligations on at least a portion of the assets in the pool. This protection may be provided through guarantees, policies or letters of credit obtained by the issuer or sponsor from third parties, through various means of structuring the transaction or through a combination of such approaches. The Funds will not pay any additional or separate fees for credit support. The degree of credit support provided for each issue is generally based on historical information respecting the level of credit risk associated with the underlying assets. Delinquency or loss in excess of that anticipated or failure of the credit support could adversely affect the return on an investment in such a security. The availability of asset-backed securities may be affected by legislative or regulatory developments. It is possible that such developments may require the Funds to dispose of any then existing holdings of such securities.

Forward Commitments

The Funds may contract to purchase securities for a fixed price at a future date beyond customary settlement time consistent with a Fund’s investment strategies. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The Funds may dispose of a forward commitment transaction prior to settlement if it is appropriate to do so and may realize short-term gains (or losses) upon such sale. When effecting such transactions, cash or liquid high-grade debt obligations of the Funds in a dollar amount sufficient to make payment for the portfolio securities to be purchased will be earmarked on the Fund’s records at the trade date and until the transaction is settled. A forward commitment transaction involves a risk of loss if the value of the security to be purchased declines prior to the settlement date or the other party to the transaction fails to complete the transaction.

To be announced (“TBA”) is a forward mortgage-backed securities trade. The securities are purchased and sold on a forward commitment basis with an approximate principal amount and maturity date. The actual principal amount and maturity date will be determined upon settlement when the specific mortgage pools are assigned. As of January 31, 2010, the Funds had cash collateral balances in connection with TBAs purchased (sold) as follows:

 

     Due to Broker
  

Russell Investment Grade Bond Fund

    $ 139,000

Russell Short Duration Bond Fund

      706,000

Inflation-Indexed Bonds

Fixed income 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.

 

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Guarantees

In the normal course of business the Funds enter into contracts that contain a variety of representations which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.

Market and Credit Risk

In the normal course of business the Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to the credit risk, the Funds may be exposed to counterparty risk or risk that an institution or other entity with which the Funds have unsettled or open transactions will default. The potential loss could exceed the value of the assets recorded in the financial statements (the “Assets”). Assets, which potentially expose the Funds to credit risk, consist principally of cash due from counterparties and investments. The extent of the Funds’ exposure to credit and counterparty risks in respect to the Assets approximates their carrying value as recorded in the Funds’ Statements of Assets and Liabilities.

On September 15, 2008, Lehman Brothers Holdings Inc. filed for protection under Chapter 11 of the United States Bankruptcy Code. On September 19, 2008, a proceeding under the Securities Investor Protection Act (SIPA) was commenced with respect to Lehman Brothers Inc., a broker-dealer. A trustee appointed under SIPA is administering the bankruptcy estate of Lehman Brothers Inc. Lehman Brothers International (Europe) was placed in administration under the UK Insolvency Act on September 15, 2008. Lehman Brothers Special Financing Inc., among other Lehman subsidiaries, filed for protection under Chapter 11 of the United States Bankruptcy Code on October 3, 2008. In connection with these filings, the Lehman Brothers group of companies (collectively “Lehman Brothers”) will be reorganized and/or liquidated in an orderly fashion, subject to court approval. Each Lehman Brothers entity is a separate legal entity that is subject to its own bankruptcy proceeding.

Certain Funds had direct holdings, swap agreements, and securities and derivatives transactions outstanding with Lehman Brothers entities as issuers, counterparties or guarantors at the time the relevant Lehman Brothers entities filed for protection or were placed in administration. The direct holdings and other derivative transactions associated with Lehman Brothers have been written down to their estimated recoverable values and incorporated as components of other receivables and liabilities on the Statements of Assets and Liabilities and net changes in realized gain (loss) or unrealized appreciation (depreciation) on the Statements of Operations. The Funds have also utilized certain netting arrangements to offset payables and receivables of Lehman securities.

RIMCo or the Funds’ Money Managers have delivered notices of default and early termination to the relevant Lehman Brothers entities where required. For transactions with Lehman Brothers counterparties, RIMCo or the Funds’ Money Managers have terminated trades, obtained quotations from brokers for replacement trades and, where deemed appropriate, re-opened positions with new counterparties.

The court overseeing all of the U.S. Lehman entities’ bankruptcy cases set filing deadlines for all those entities. The Lehman Brothers Inc. claims filing deadline was January 30, 2009 for all customer claims and June 1, 2009 for all general creditor claims related to Lehman Brothers Inc. In the case of all other U.S. Lehman entities, the court set filing deadlines of September 22, 2009 and November 2, 2009 (for certain “Program Securities”). To the extent that the Funds held accounts with Lehman Brothers Inc., the Funds filed the appropriate customer claims on January 29, 2009 and filed all other claims related to the U.S. Lehman entities on the foregoing deadlines.

 

3.   Investment Transactions

Written Options Contracts

Transactions in written options contracts for the period ended January 31, 20010 for the following Funds were as follows:

 

     Russell Strategic
Bond Fund		     Russell Investment
Grade Bond Fund		     Russell Short
Duration Bond Fund		  
      Number of
Contracts		     Premiums
Received		     Number of
Contracts		     Premiums
Received		     Number of
Contracts		     Premiums
Received		  
            

Outstanding October 31, 2009

    376      $ 4,306,648      390      $ 653,395      38      $ 379,563   

Opened

    673        3,296,256      569        655,091      36        269,091   

Closed

    —        —      93        18,216      —        —   

Expired

    (456 )      (2,889,787 )    (620 )      (390,133 )    (51 )      (54,848 ) 
                                          

Outstanding January 31, 2010

    593      $ 4,713,117      432      $ 936,569      23      $ 593,806   
                                          

 

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Securities Lending

The Investment Company has a securities lending program whereby each Fund can loan securities with a value up to 33 1/3% of each Fund’s total assets. The Fund receives cash (U.S. currency), U.S. Government or U.S. 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. 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 U.S. securities) or 105% (for loans of non-U.S. 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 creditworthy.

The Funds that participate in securities lending have some cash collateral invested in the State Street Securities Lending Quality Trust Fund (“SLQT”). The short-term portfolio instruments held by SLQT are valued on the basis of amortized cost. Issuances and redemptions of interests in SLQT are made on each business day (“valuation date”). Currently, interests in SLQT are purchased and redeemed at a constant net asset value of $1.00 per unit for daily operational liquidity purposes, although redemptions for certain other purposes may be in-kind. In the event that a significant disparity develops between the net asset value based on amortized cost and the market based net asset value of SLQT, the Trustee of SLQT may determine that continued redemption at a constant $1.00 net asset value would create inequitable results for the SLQT’s interest holders. In these circumstances, the Trustee of SLQT, in its sole discretion and acting on behalf of the SLQT interest holders, may direct that interests be redeemed at the market-based net asset value until such time as the disparity between the market-based and the constant net asset value per unit is deemed to be insignificant.

At January 31, 2010, the SLQT was transacting at its amortized cost value of $1.00 per unit for daily operational liquidity purposes. The SLQT’s market value per unit is lower than its amortized cost value per unit. Effective February 10, 2009, the Funds began valuing the units of SLQT for purposes of the Funds’ daily valuation calculation at the unit’s market value rather than the unit’s amortized cost value. Each Fund has segregated assets to cover the difference between SLQT’s market value per unit and its amortized cost value per unit.

The Funds that participate in securities lending invest a portion of their cash collateral in the Russell U.S. Cash Collateral Fund an unregistered fund advised by RIMCo and administered by RFSC.

As of January 31, 2010, the non-cash collateral pledged for the securities on loan in the following funds was as follows:

 

     

Non-Cash

Collateral Value

    Non-Cash Collateral Holding
     
Russell U.S. Core Fund    $ 11,925    Pool of US Government Securities
Russell U.S. Growth Fund      277,557    Pool of US Government Securities
Russell U.S. Value Fund      134,326    Pool of US Government Securities
Russell U.S. Small & Mid Cap Fund      330,042    Pool of US Government Securities
Russell Tax-Managed U.S. Large Cap Fund      1,174,393    Pool of US Government Securities
Russell Tax-Managed U.S. Mid & Small Cap Fund      270,062    Pool of US Government Securities
Russell Real Estate Securities Fund      6,709,026    Pool of US Government Securities

 

4.   Related Party Transactions

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 Russell U.S. Cash Management Fund an unregistered Fund advised by RIMCo. As of January 31, 2010, $1,526,777,594 represents Investment Company Funds in the Russell U.S. Cash Management Fund. In addition, a portion of the collateral received from the Investment Company’s securities lending program in the amount of $950,000,000 is invested in the Russell U.S. Cash Collateral Fund.

 

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5.   Federal Income Taxes

At January 31, 2010, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

 

      Russell
U.S. Core Equity
Fund		     Russell
U.S. Quantitative Equity
Fund		     Russell
U.S. Growth
Fund		     Russell
U.S. Value
Fund		     Russell
U.S. Small & Mid Cap
Fund		  
          
          

Cost of Investments

    $ 4,701,644,955      $ 4,540,930,309      $ 84,126,119      $ 163,460,223      $ 1,673,225,209   
                                        

Unrealized Appreciation

    $ 225,102,733      $ 116,101,650      $ 10,975,422      $ 10,110,955      $ 159,367,775   

Unrealized Depreciation

      (89,217,085 )      (60,531,584 )      (1,984,237 )      (3,754,241 )      (45,142,647 ) 
                                        

Net Unrealized Appreciation (Depreciation)

    $ 135,885,648      $ 55,570,066      $ 8,991,185      $ 6,356,714      $ 114,225,128   
                                        
      Russell
International
Developed Markets
Fund		     Russell
Global Equity
Fund		     Russell
Emerging Markets
Fund		     Russell
Tax-Managed
U.S. Large Cap
Fund		     Russell
Tax-Managed
U.S. Mid & Small Cap
Fund		  

Cost of Investments

    $ 4,519,577,920      $ 1,004,327,873      $ 1,177,242,258      $ 315,312,599      $ 184,038,392   
                                        

Unrealized Appreciation

    $ 72,932,852      $ 91,058,236      $ 270,725,637      $ 64,645,627      $ 15,635,536   

Unrealized Depreciation

      (44,495,355 )      (28,326,421 )      (39,566,584 )      (12,187,442 )      (8,054,146 ) 
                                        

Net Unrealized Appreciation (Depreciation)

    $ 28,437,497      $ 62,731,815      $ 231,159,053      $ 52,458,185      $ 7,581,390   
                                        
      Russell
Strategic Bond
Fund		     Russell
Investment Grade Bond
Fund		     Russell
Short Duration Bond
Fund		     Russell
Tax Exempt Bond
Fund		     Russell
Real Estate Securities
Fund		  

Cost of Investments

    $ 8,652,089,650      $ 1,104,853,928      $ 654,812,903      $ 467,829,198      $ 2,180,483,977   
                                        

Unrealized Appreciation

    $ 265,684,230      $ 39,441,521      $ 17,806,709      $ 18,287,995      $ 49,528,850   

Unrealized Depreciation

      (530,887,186 )      (61,868,581 )      (8,841,777 )      (2,373,148 )      (5,924,558 ) 
                                        

Net Unrealized Appreciation (Depreciation)

    $ (265,202,956 )    $ (22,427,060 )    $ 8,964,932      $ 15,914,847      $ 43,604,292   
                                        

 

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% (10% for the Money Market Fund) in securities that are illiquid. This limitation is applied at the time of purchase. Illiquid securities are securities that may not be readily marketable, and that cannot be sold within seven days in the ordinary course of business at the approximate amount at which the Fund has valued the securities. Restricted securities are generally considered to be illiquid.

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.

 

Fund - % of Net Assets
Securities		    Acquistion
Date		    Principal
Amount ($)
or Shares		    Cost per
Unit
$		    Cost
(000)
$		    Market Value
(000)
$
              

Russell U.S. Small & Mid Cap Fund - 0.1%

               

Perceptron, Inc.

    03/10/08    216,484    9.98    2,161    682
                

Russell International Developed Markets Fund - 0.2%

               

ABC Learning Centres, Ltd.

    07/16/08    43,374    0.77    33    21

HON HAI Precision Industry Co., Ltd.

    08/27/07    1,789,320    3.15    5,642    7,506
                
               7,527
                

Russell Global Equity Fund - 0.1%

               

Endeavor Financial Corp.

    01/29/09    417,425    0.07    27    687

Endeavor Financial Corp.

    01/29/09    251,905    2.76    696    158
                
               845
                

 

Notes to Quarterly Report   215

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Fund - % of Net Assets
Securities		    Acquistion
Date		    Principal
Amount ($)
or Shares		    Cost per
Unit
$		    Cost
(000)
$		    Market Value
(000)
$
              

Russell Emerging Markets Fund - 1.6%

               

Corp. Moctezuma SAB de CV

    03/01/06    319,163    1.81    578    874

Delta Corp., Ltd.

    09/23/09    1,323,859    0.51    675    688

Far Eastern New Century Corp.

    10/09/09    1,371,158    0.72    988    1,503

HON HAI Precision Industry Co., Ltd.

    11/12/01    1,996,308    3.33    6,653    8,374

Kalina

    08/02/06    15,100    42.59    643    272

Magnit OAO

    05/16/06    56,529    23.63    1,336    3,844

MDM Bank OAO

    09/04/07    1,376,805    1.94    2,664    923

MOL Hungarian Oil and Gas NyRt - ADR

    12/19/07    12,898    4.05    52    632

Ramayana Lestari Sentosa Tbk PT

    06/28/96    5,547,492    0.08    452    512

Raspadskaya

    09/05/08    411,707    3.67    1,510    2,216

Seventh Continent

    06/01/06    38,051    27.91    1,062    301
                
               20,139
                

Russell Strategic Bond Fund - 2.4%

               

Anglo American Capital PLC

    08/03/09    1,075,000    119.43    1,284    1,302

ARES CLO Funds

    01/15/09    13,524,475    73.26    9,907    12,387

Armstrong Loan Funding, Ltd.

    05/21/09    3,766,211    —    3,260    3,655

BNP Paribas Capital Trust

    06/01/06    3,450,000    112.09    3,867    3,484

Adam Aircraft Term Loan

    05/22/07    760,489    96.78    736    8

Bank of Tokyo-Mitsubishi UFJ, Ltd.

    01/13/10    3,300,000    99.96    3,299    3,348

Black Diamond CLO, Ltd.

    09/11/08    27,750,000    77.57    21,526    24,991

CIT Mortgage Loan Trust

    10/05/07    3,021,320    100.00    3,021    2,641

CIT Mortgage Loan Trust

    10/05/07    2,100,000    100.00    2,100    932

CIT Mortgage Loan Trust

    10/05/07    3,900,000    100.00    3,900    1,472

Chatham Light CLO, Ltd.

    11/25/09    3,465,848    90.23    3,127    3,152

College Loan Corp. Trust

    08/25/09    200,000,000    80.70    1,614    1,700

Crown Castle Towers LLC

    07/29/09    4,255,000    100.00    4,255    4,412

Credit Suisse Mortgage Capital Certificates

    09/03/08    8,604,769    68.28    5,875    6,166

DG Funding Trust

    11/04/03    479    10,585.30    5,070    4,244

Dexia Credit Local

    01/05/10    7,200,000    99.69    7,178    7,266

Fannie Mae REMICS

    07/05/06    14,651    0.11    —    —

Fannie Mae REMICS

    05/29/07    75,926    99.22    75    70

Fannie Mae REMICS

    05/29/07    45,720    95.10    43    41

Fannie Mae REMICS

    06/04/07    198,087    109.90    218    178

Fannie Mae REMICS

    06/11/07    92,471    104.56    97    88

Fannie Mae REMICS

    06/21/07    55,440    108.42    60    49

Ford Credit Floorplan Master Owner Trust

    01/06/10    4,220,000    100.00    4,220    4,240

Freddie Mac REMICS

    07/07/06    214,194    94.68    203    191

Freddie Mac REMICS

    04/13/07    365,306    101.87    372    364

Freddie Mac REMICS

    04/23/07    40,539    99.24    40    40

Freddie Mac REMICS

    05/29/07    35,417    92.02    33    35

Freddie Mac REMICS

    06/21/07    114,988    108.61    125    112

Freddie Mac REMICS

    06/22/07    135,082    118.50    160    134

Freddie Mac REMICS

    06/26/07    66,727    112.66    75    66

Freddie Mac REMICS

    07/17/07    237,178    109.02    259    263

Freddie Mac Strips

    12/29/09    22,935,845    9.47    2,173    2,282

GMAC, Inc.

    07/28/09    5,375,000    96.18    5,170    5,415

GMAC, Inc.

    12/31/08    1,315,000    88.45    1,163    1,315

Gaz Capital SA

    01/05/10    4,865,000    109.11    5,308    5,285

Kansas City Southern de Mexico SA de CV

    01/07/10    1,800,000    98.55    1,774    1,773

LBG Capital No. 1 PLC

    09/22/05    300,000    100.00    300    249

Liberty Mutual Group, Inc.

    02/28/07    11,335,000    96.98    10,993    9,748

Lloyds TSB Bank PLC

    12/15/09    8,700,000    100.00    8,700    9,643

Lloyds TSB Bank PLC

    01/05/10    4,450,000    100.00    4,450    4,424

Nissan Master Owner Trust Receivables

    01/27/10    6,300,000    100.00    6,300    6,300

Petroleos Mexicanos

    09/10/09    3,490,000    98.86    3,450    3,457

Royal Bank of Scotland Group PLC

    08/18/09    18,000,000    99.95    17,992    18,019

TNK-BP Finance SA

    10/03/07    3,435,000    98.73    3,391    3,384

 

216   Notes to Quarterly Report

Table of Contents

Russell Investment Company

Russell Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

Fund - % of Net Assets
Securities		    Acquistion
Date		    Principal
Amount ($)
or Shares		    Cost per
Unit
$		    Cost
(000)
$		    Market Value
(000)
$
              

Symetra Financial Corp.

    10/04/07    1,200,000    98.66    1,184    1,165

Wells Fargo Home Equity Trust

    11/06/08    189,431    91.78    174    186

Westpac Banking Corp.

    12/07/09    9,600,000    103.85    9,970    9,955

Westpac Banking Corp.

    12/07/09    11,400,000    99.93    11,394    11,410
                
               181,041
                

Russell Investment Grade Bond Fund - 0.7%

               

Bank of Tokyo-Mitsubishi UFJ, Ltd.

    01/13/10    460,000    99.99    460    462

Bank of Tokyo-Mitsubishi UFJ, Ltd.

    01/13/10    300,000    99.96    300    304

DG Funding Trust

    11/04/03    392    10,587.26    4,150    3,473

Depfa ACS Bank

    03/08/07    400,000    98.46    394    299

GMAC, Inc.

    07/28/09    159,000    54.72    87    150

Glitnir Banki HF

    06/12/06    700,000    99.92    699    —

Glitnir Banki HF

    07/21/06    270,000    100.00    270    68

Glitnir Banki HF

    09/20/07    390,000    99.82    389    98

Kaupthing Bank Hf

    05/12/06    100,000    99.72    100    25

Kaupthing Bank Hf

    05/12/06    1,210,000    84.53    1,023    296

Kaupthing Bank Hf

    04/23/09    1,480,000    99.57    1,474    —

LBG Capital No. 1 PLC

    09/22/05    200,000    100.0    200    166

Lloyds TSB Bank PLC

    01/05/10    400,000    100.00    400    398

Lloyds TSB Bank PLC

    01/05/10    420,000    99.85    419    415

Nordea Bank AB

    01/21/10    240,000    99.45    239    238

Petroleos Mexicanos

    09/10/09    400,000    98.79    395    396

Santander US Debt SA Unipersonal

    01/13/10    400,000    100.00    400    403
                
               7,191
                

Russell Short Duration Bond Fund - 1.3%

               

Bank of Tokyo-Mitsubishi UFJ, Ltd

    01/13/10    600,000    99.96    600    609

DG Funding Trust

    11/04/03    219    10,537.12    2,308    1,940

Ford Credit Floorplan Master Owner Trust

    12/02/09    815,000    100.00    815    819

Gaz Capital SA

    01/05/10    800,000    109.16    873    869

Kansas City Southern de Mexico SA de CV

    01/07/10    450,000    98.55    443    443

Landmark CDO, Ltd.

    12/16/09    919,584    95.07    874    870

MASTR Reperforming Loan Trust

    09/28/09    230,147    92.50    213    216

Metropolitan Life Global Funding I

    10/17/08    2,000,000    100.00    2,000    1,999

Nissan Master Owner Trust Receivables

    01/27/10    1,225,000    100.00    1,225    1,225
                
               8,990
                

Russell Money Market Fund - 0.8%

               

AID to INH Portugal Guaranteed Note

    05/06/94    5,000,000    100.94    5,047    5,033
                
               5,033
                

Illiquid securities and restricted securities may be priced by the Funds using fair value procedures approved by the Board.

 

7.   Subsequent Events

Management has evaluated events or transactions that may have occurred since January 31, 2010 that would merit recognition or disclosure in the Quarterly Report. This evaluation was completed through March 31, 2010, the date the Quarterly Report was issued. During this review nothing was discovered which would required further disclosure within the Quarterly Report.

 

Notes to Quarterly Report   217

Table of Contents

Russell Investment Company

Russell Funds

Shareholder Requests for Additional Information — January 31, 2010 (Unaudited)

 

 

 

A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third quarters of each fiscal year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354, (ii) at www.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 the Funds. A description of the P&P, Guidelines, Portfolio Holdings Disclosure Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional Information (“SAI”). The SAI is available (i) free of charge, upon request, by calling the Funds 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 contact your financial institution.

Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectus and annual and semiannual reports. Please contact your Financial Intermediary for further details.

 

218   Shareholder Requests for Additional Information

Table of Contents

 

Russell Investment Company    909 A Street      800-787-7354
   Tacoma, Washington 98402      Fax: 253-591-3495
        www.russell.com

 

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Table of Contents

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2010 QUARTERLY REPORT

 

 

LifePoints® Funds

 

 

JANUARY 31, 2010

 

FUND    SHARE CLASS
Conservative Strategy Fund    A, C, E, R1, R2, R3, S
Moderate Strategy Fund    A, C, E, R1, R2, R3, S
Balanced Strategy Fund    A, C, E, R1, R2, R3, S
Growth Strategy Fund    A, C, E, R1, R2, R3, S
Equity Growth Strategy Fund    A, C, E, R1, R2, R3, S
2010 Strategy Fund    A, E, R1, R2, R3, S
2015 Strategy Fund    R1, R2, R3
2020 Strategy Fund    A, E, R1, R2, R3, S
2025 Strategy Fund    R1, R2, R3
2030 Strategy Fund    A, E, R1, R2, R3, S
2035 Strategy Fund    R1, R2, R3
2040 Strategy Fund    A, E, R1, R2, R3, S
2045 Strategy Fund    R1, R2, R3
2050 Strategy Fund    R1, R2, R3
In Retirement Fund    R1, R2, R3

 

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Table of Contents

 

Russell Investment Company

Russell Investment Company is a series investment company with 37 different investment portfolios referred to as Funds. This Quarterly Report reports on 15 of these Funds.

Table of Contents

 

Russell Investment Company

LifePoints® Funds

Quarterly Report

January 31, 2010 (Unaudited)

Table of Contents

 

     Page
Conservative Strategy Fund    3
Moderate Strategy Fund    4
Balanced Strategy Fund    5
Growth Strategy Fund    6
Equity Growth Strategy Fund    7
2010 Strategy Fund    8
2015 Strategy Fund    9
2020 Strategy Fund    10
2025 Strategy Fund    11
2030 Strategy Fund    12
2035 Strategy Fund    13
2040 Strategy Fund    14
2045 Strategy Fund    15
2050 Strategy Fund    16
In Retirement Fund    17
Notes to Quarterly Report    18
Shareholder Requests for Additional Information    22

Table of Contents

 

Russell Investment Company - LifePoints® Funds.

Copyright © Russell Investments 2010. All rights reserved.

Russell Investments 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 Financial Services, Inc. member FINRA, part of Russell Investments.

Table of Contents

Russell Investment Company

Conservative Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$
       
       
Investments - 99.8%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 80.5%        

Russell Short Duration Bond Fund

    5,832,638      110,937

Russell Strategic Bond Fund

    31,805,272      333,637
         
        444,574
         
Domestic Equities - 13.6%        

Russell Real Estate Securities Fund

    567,872      16,065

Russell U.S. Core Equity Fund

    1,362,636      31,913

Russell U.S. Quantitative Equity Fund

    1,075,036      26,790
         
        74,768
         
International Equities - 5.7%        

Russell Global Equity Fund

    1,423,593      10,591

Russell International Developed
Markets Fund

    749,924      21,103
         
        31,694
         
Total Investments - 99.8%
(identified cost $540,657)		         551,036
Other Assets and Liabilities,
Net - 0.2%		         986
         
Net Assets - 100.0%         552,022
         

 

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

 

Conservative Strategy Fund   3

Table of Contents

Russell Investment Company

Moderate Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.1%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 61.7%        

Russell Strategic Bond Fund

    58,345,380      612,043   
           
Domestic Equities - 25.1%        

Russell Real Estate Securities Fund

    1,020,248      28,863   

Russell U.S. Core Equity Fund

    4,076,063      95,461   

Russell U.S. Quantitative Equity Fund

    3,874,584      96,555   

Russell U.S. Small & Mid Cap Fund

    1,640,160      28,637   
           
        249,516   
           
International Equities - 13.3%        

Russell Emerging Markets Fund

    1,125,488      18,829   

Russell Global Equity Fund

    3,833,287      28,520   

Russell International Developed
Markets Fund

    3,021,152      85,015   
           
        132,364   
           
Total Investments - 100.1%
(identified cost $1,037,956)		         993,923   
Other Assets and Liabilities,
Net - (0.1%)		         (983 ) 
           
Net Assets - 100.0%         992,940   
           

 

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

 

4   Moderate Strategy Fund

Table of Contents

Russell Investment Company

Balanced Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.0%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 40.7%        

Russell Strategic Bond Fund

    164,083,741      1,721,239   
           
Domestic Equities - 38.9%        

Russell Real Estate Securities Fund

    7,509,124      212,433   

Russell U.S. Core Equity Fund

    26,824,157      628,222   

Russell U.S. Quantitative Equity Fund

    25,421,426      633,502   

Russell U.S. Small & Mid Cap Fund

    9,681,985      169,047   
           
        1,643,204   
           
International Equities - 20.4%        

Russell Emerging Markets Fund

    7,465,525      124,898   

Russell Global Equity Fund

    22,384,637      166,542   

Russell International Developed
Markets Fund

    20,364,400      573,054   
           
        864,494   
           
Total Investments - 100.0%
(identified cost $4,637,692)		         4,228,937   
Other Assets and Liabilities,
Net - (0.0%)		         (696 ) 
           
Net Assets - 100.0%         4,228,241   
           

 

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

 

Balanced Strategy Fund   5

Table of Contents

Russell Investment Company

Growth Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.0%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 20.4%        

Russell Strategic Bond Fund

    55,732,066      584,629   
           
Domestic Equities - 53.1%        

Russell Real Estate Securities Fund

    6,075,578      171,878   

Russell U.S. Core Equity Fund

    25,628,848      600,228   

Russell U.S. Quantitative Equity Fund

    23,066,360      574,814   

Russell U.S. Small & Mid Cap Fund

    9,842,357      171,847   
           
        1,518,767   
           
International Equities - 26.5%        

Russell Emerging Markets Fund

    6,735,252      112,681   

Russell Global Equity Fund

    22,916,237      170,497   

Russell International Developed
Markets Fund

    16,891,474      475,326   
           
        758,504   
           
Total Investments - 100.0%
(identified cost $3,368,858)		         2,861,900   
Other Assets and Liabilities,
Net - (0.0%)		         (480 ) 
           
Net Assets - 100.0%         2,861,420   
           

 

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

 

6   Growth Strategy Fund

Table of Contents

Russell Investment Company

Equity Growth Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$
       
       
Investments - 99.9%        
Other Russell Investment Company
Series Mutual Funds		     
Domestic Equities - 65.2%        

Russell Real Estate Securities Fund

    3,307,590      93,572

Russell U.S. Core Equity Fund

    14,827,190      347,253

Russell U.S. Quantitative Equity Fund

    13,452,153      335,228

Russell U.S. Small & Mid Cap Fund

    5,350,146      93,413
         
        869,466
         
International Equities - 34.7%        

Russell Emerging Markets Fund

    3,931,416      65,773

Russell Global Equity Fund

    12,534,068      93,253

Russell International Developed
Markets Fund

    10,761,602      302,831
         
        461,857
         
Total Investments - 99.9%
(identified cost $1,634,768)		         1,331,323
Other Assets and Liabilities,
Net - 0.1%		         1,789
         
Net Assets - 100.0%         1,333,112
         

 

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

 

Equity Growth Strategy Fund   7

Table of Contents

Russell Investment Company

2010 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.0%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 68.5%        

Russell Short Duration Bond Fund

    319,459      6,076   

Russell Strategic Bond Fund

    4,354,311      45,677   
           
        51,753   
           
Domestic Equities - 20.9%        

Russell Real Estate Securities Fund

    79,579      2,251   

Russell U.S. Core Equity Fund

    260,433      6,099   

Russell U.S. Quantitative Equity Fund

    245,520      6,119   

Russell U.S. Small & Mid Cap Fund

    76,525      1,336   
           
        15,805   
           
International Equities - 10.6%        

Russell Emerging Markets Fund

    53,399      893   

Russell Global Equity Fund

    260,826      1,940   

Russell International Developed
Markets Fund

    185,452      5,219   
           
        8,052   
           
Total Investments - 100.0%
(identified cost $74,304)		         75,610   
Other Assets and Liabilities,
Net - (0.0%)		         (11 ) 
           
Net Assets - 100.0%         75,599   
           

 

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

 

8   2010 Strategy Fund

Table of Contents

Russell Investment Company

2015 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.1%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 58.4%        

Russell Strategic Bond Fund

    1,070,694      11,232   
           
Domestic Equities - 27.1%        

Russell Real Estate Securities Fund

    21,697      614   

Russell U.S. Core Equity Fund

    85,291      1,997   

Russell U.S. Quantitative Equity Fund

    80,359      2,003   

Russell U.S. Small & Mid Cap Fund

    33,712      589   
           
        5,203   
           
International Equities - 14.6%        

Russell Emerging Markets Fund

    24,094      403   

Russell Global Equity Fund

    79,253      589   

Russell International Developed
Markets Fund

    64,276      1,809   
           
        2,801   
           
Total Investments - 100.1%
(identified cost $17,647)		         19,236   
Other Assets and Liabilities,
Net - (0.1%)		         (14 ) 
           
Net Assets - 100.0%         19,222   
           

 

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

 

2015 Strategy Fund   9

Table of Contents

Russell Investment Company

2020 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.0%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 49.1%        

Russell Strategic Bond Fund

    8,987,542      94,279   
           
Domestic Equities - 33.3%        

Russell Real Estate Securities Fund

    281,733      7,970   

Russell U.S. Core Equity Fund

    1,044,224      24,456   

Russell U.S. Quantitative Equity Fund

    991,380      24,705   

Russell U.S. Small & Mid Cap Fund

    387,596      6,768   
           
        63,899   
           
International Equities - 17.6%        

Russell Emerging Markets Fund

    288,999      4,835   

Russell Global Equity Fund

    905,698      6,738   

Russell International Developed
Markets Fund

    793,778      22,337   
           
        33,910   
           
Total Investments - 100.0%
(identified cost $191,841)		         192,088   
Other Assets and Liabilities,
Net - (0.0%)		         (40 ) 
           
Net Assets - 100.0%         192,048   
           

 

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

 

10   2020 Strategy Fund

Table of Contents

Russell Investment Company

2025 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.1%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 33.6%        

Russell Strategic Bond Fund

    642,158      6,737   
           
Domestic Equities - 43.6%        

Russell Real Estate Securities Fund

    37,857      1,071   

Russell U.S. Core Equity Fund

    143,976      3,372   

Russell U.S. Quantitative Equity Fund

    135,534      3,377   

Russell U.S. Small & Mid Cap Fund

    53,538      935   
           
        8,755   
           
International Equities - 22.9%        

Russell Emerging Markets Fund

    39,773      665   

Russell Global Equity Fund

    125,714      935   

Russell International Developed
Markets Fund

    106,305      2,992   
           
        4,592   
           
Total Investments - 100.1%
(identified cost $18,713)		         20,084   
Other Assets and Liabilities,
Net - (0.1%)		         (14 ) 
           
Net Assets - 100.0%         20,070   
           

 

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

 

2025 Strategy Fund   11

Table of Contents

Russell Investment Company

2030 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.0%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 13.8%        

Russell Strategic Bond Fund

    2,050,020      21,504   
           
Domestic Equities - 56.8%        

Russell Real Estate Securities Fund

    350,290      9,910   

Russell U.S. Core Equity Fund

    1,472,332      34,482   

Russell U.S. Quantitative Equity Fund

    1,391,739      34,682   

Russell U.S. Small & Mid Cap Fund

    562,310      9,818   
           
        88,892   
           
International Equities - 29.4%        

Russell Emerging Markets Fund

    401,173      6,712   

Russell Global Equity Fund

    1,318,688      9,811   

Russell International Developed
Markets Fund

    1,047,447      29,475   
           
        45,998   
           
Total Investments - 100.0%
(identified cost $165,104)		         156,394   
Other Assets and Liabilities,
Net - (0.0%)		         (26 ) 
           
Net Assets - 100.0%         156,368   
           

 

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

 

12   2030 Strategy Fund

Table of Contents

Russell Investment Company

2035 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.1%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 10.1%        

Russell Strategic Bond Fund

    108,892      1,142   
           
Domestic Equities - 59.1%        

Russell Real Estate Securities Fund

    25,943      734   

Russell U.S. Core Equity Fund

    110,582      2,590   

Russell U.S. Quantitative Equity Fund

    104,082      2,594   

Russell U.S. Small & Mid Cap Fund

    41,765      729   
           
        6,647   
           
International Equities - 30.9%        

Russell Emerging Markets Fund

    30,191      505   

Russell Global Equity Fund

    97,996      729   

Russell International Developed
Markets Fund

    79,588      2,240   
           
        3,474   
           
Total Investments - 100.1%
(identified cost $10,558)		         11,263   
Other Assets and Liabilities,
Net - (0.1%)		         (12 ) 
           
Net Assets - 100.0%         11,251   
           

 

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

 

2035 Strategy Fund   13

Table of Contents

Russell Investment Company

2040 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.0%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 10.6%        

Russell Strategic Bond Fund

    1,227,755      12,879   
           
Domestic Equities - 58.8%        

Russell Real Estate Securities Fund

    278,209      7,870   

Russell U.S. Core Equity Fund

    1,180,611      27,650   

Russell U.S. Quantitative Equity Fund

    1,116,364      27,820   

Russell U.S. Small & Mid Cap Fund

    446,833      7,802   
           
        71,142   
           
International Equities - 30.6%        

Russell Emerging Markets Fund

    321,819      5,384   

Russell Global Equity Fund

    1,046,213      7,784   

Russell International Developed
Markets Fund

    848,665      23,881   
           
        37,049   
           
Total Investments - 100.0%
(identified cost $126,393)		         121,070   
Other Assets and Liabilities,
Net - (0.0%)		         (23 ) 
           
Net Assets - 100.0%         121,047   
           

 

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

 

14   2040 Strategy Fund

Table of Contents

Russell Investment Company

2045 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.2%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 10.3%        

Russell Strategic Bond Fund

    62,365      654   
           
Domestic Equities - 59.0%        

Russell Real Estate Securities Fund

    14,603      413   

Russell U.S. Core Equity Fund

    61,945      1,451   

Russell U.S. Quantitative Equity Fund

    58,374      1,455   

Russell U.S. Small & Mid Cap Fund

    23,424      409   
           
        3,728   
           
International Equities - 30.9%        

Russell Emerging Markets Fund

    16,955      284   

Russell Global Equity Fund

    54,987      409   

Russell International Developed
Markets Fund

    44,681      1,257   
           
        1,950   
           
Total Investments - 100.2%
(identified cost $6,013)		         6,332   
Other Assets and Liabilities,
Net - (0.2%)		         (11 ) 
           
Net Assets - 100.0%         6,321   
           

 

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

 

2045 Strategy Fund   15

Table of Contents

Russell Investment Company

2050 Strategy Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.1%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 10.2%        

Russell Strategic Bond Fund

    130,762      1,372   
           
Domestic Equities - 59.0%        

Russell Real Estate Securities Fund

    30,894      874   

Russell U.S. Core Equity Fund

    131,339      3,076   

Russell U.S. Quantitative Equity Fund

    123,623      3,081   

Russell U.S. Small & Mid Cap Fund

    49,694      867   
           
        7,898   
           
International Equities - 30.9%        

Russell Emerging Markets Fund

    35,864      600   

Russell Global Equity Fund

    116,662      868   

Russell International Developed
Markets Fund

    94,871      2,670   
           
        4,138   
           
Total Investments - 100.1%
(identified cost $11,213)		         13,408   
Other Assets and Liabilities,
Net - (0.1%)		         (12 ) 
           
Net Assets - 100.0%         13,396   
           

 

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

 

16   2050 Strategy Fund

Table of Contents

Russell Investment Company

In Retirement Fund

Schedule of Investments — January 31, 2010 (Unaudited)

Amounts in thousands (except share amounts)

 

     Shares      Market
Value
$		  
       
       
Investments - 100.2%        
Other Russell Investment Company
Series Mutual Funds		     
Bonds - 68.7%        

Russell Short Duration Bond Fund

    20,277      386   

Russell Strategic Bond Fund

    276,285      2,898   
           
        3,284   
           
Domestic Equities - 20.9%        

Russell Real Estate Securities Fund

    5,045      143   

Russell U.S. Core Equity Fund

    16,489      386   

Russell U.S. Quantitative Equity Fund

    15,551      387   

Russell U.S. Small & Mid Cap Fund

    4,845      85   
           
        1,001   
           
International Equities - 10.6%        

Russell Emerging Markets Fund

    3,385      57   

Russell Global Equity Fund

    16,404      122   

Russell International Developed
Markets Fund

    11,637      327   
           
        506   
           
Total Investments - 100.2%
(identified cost $4,252)		         4,791   
Other Assets and Liabilities,
Net - (0.2%)		         (9 ) 
           
Net Assets - 100.0%         4,782   
           

 

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

 

In Retirement Fund   17

Table of Contents

Russell Investment Company

LifePoints® Funds

Notes to Quarterly Report — January 31, 2010 (Unaudited)

 

 

 

1.   Organization

Russell Investment Company (the “Investment Company” or “RIC”) is a series investment company with 37 different investment portfolios referred to as Funds. This Quarterly Report reports on 15 of these Funds (each a “Fund” and collectively 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 a Second Amended and Restated Master Trust Agreement dated October 1, 2008. The Investment Company’s Master Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest.

Target Portfolio Funds

The Funds seek to achieve their objective by investing in shares of certain of the Investment Company’s Funds (the “Underlying Funds”) as set forth in the table below. Russell Investment Management Company (“RIMCo”) is the Funds’ adviser and may modify the target asset allocation for any Fund and/or the Underlying Funds in which the Funds invest from time to time based on strategic capital markets research or on factors such as RIMCo’s outlook for the economy, financial markets generally and/or relative market valuation of the asset classes represented by each Underlying Fund. In the future, the Fund may also invest in other RIC Underlying Funds. Any modification in the asset allocation or changes to the Underlying Funds will be based on strategic, long-term allocation decisions and not on tactical, short-term positioning and may be made one or more times per year. In the future, the Funds may also invest in other funds which are not currently Underlying Funds.

 

     Asset Allocation Targets as of March 1, 2009 through February 28, 2010  
Underlying Funds    Conservative
Strategy Fund		    

Moderate

Strategy Fund

     Balanced
Strategy Fund		     Growth
Strategy Fund		     Equity Growth
Strategy Fund		  
          

Bonds

           

Russell Short Duration Bond Fund

    20 %    — %    — %    — %    — % 

Russell Strategic Bond Fund

    60      60      40      20      —   

Domestic Equities

           

Russell Real Estate Securities Fund

    3      3      5      6      7   

Russell U.S. Core Equity Fund

    6      10      15      21      26   

Russell U.S. Quantitative Equity Fund

    5      10      15      20      25   

Russell U.S. Small & Mid Cap Fund

    —      3      4      6      7   

International Equities

           

Russell Emerging Markets Fund

    —      2      3      4      5   

Russell Global Equity Fund

    2      3      4      6      7   

Russell International Developed Markets Fund

    4      9      14      17      23   
                              
   100 %    100 %    100 %    100 %    100 % 
                              
     Asset Allocation Targets as of March 1, 2010  
Underlying Funds    Conservative
Strategy Fund		    

Moderate

Strategy Fund

     Balanced
Strategy Fund		     Growth
Strategy Fund		     Equity Growth
Strategy Fund		  
          

Bonds

           

Russell Investment Grade Bond Fund

    20 %    20 %    — %    — %    — % 

Russell Short Duration Bond Fund

    20      —      —      —      —   

Russell Strategic Bond Fund

    40      40      40      20      —   

Domestic Equities

           

Russell Real Estate Securities Fund

    3      3      5      6      7   

Russell U.S. Core Equity Fund

    4      8      13      18      23   

Russell U.S. Quantitative Equity Fund

    4      9      13      17      22   

Russell U.S. Small & Mid Cap Fund

    —      3      4      6      7   

International Equities

           

Russell Emerging Markets Fund

    —      2      3      4      5   

Russell Global Equity Fund

    5      6      8      10      13   

Russell International Developed Markets Fund

    4      9      14      19      23   
                              
   100 %    100 %    100 %    100 %    100 % 
                              

Target Date Funds

Each of the Funds listed in the table below seeks to achieve its objective by investing in Shares of certain of the Underlying Funds. The allocation of these Funds’ assets to the Underlying Funds in which they invest will become more conservative over time. At approximately the target year, the target allocations of each Fund to the Underlying Funds will be fixed at 68% exposure to the underlying fixed income funds and 32% exposure to underlying equity funds. This means 32% of your investment will be exposed to equity markets, and the risks of such exposure, while in retirement. Once a Fund (other than the In Retirement Fund)

 

18   Notes to Quarterly Report

Table of Contents

Russell Investment Company

LifePoints® Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

reaches its target year it may, depending on the facts and circumstances at the time and contingent upon Board approval, continue to operate, be merged into the In Retirement Fund or another fund, or be liquidated. 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, RIMCO may modify the target asset allocation for the Fund and/or the Underlying Funds in which the Fund invests from time to time based on strategic capital markets research or on factors such as RIMCo’s outlook for the economy, financial markets generally and/or relative market valuation of the asset classes represented by each Underlying Fund. In the future, the Fund may also invest in other RIC Underlying Funds. Any modification in the asset allocation or changes to the Underlying Funds will be based on strategic, long-term allocation decisions and not on tactical, short-term positioning and may be made one or more times per year. In addition, the Funds may in the future invest in other funds which are not currently Underlying Funds.

 

     Asset Allocation Targets as of March 1, 2009 through February 28, 2010  
Underlying Funds    2010
Strategy Fund		     2015
Strategy Fund		     2020
Strategy Fund		     2025
Strategy Fund		     2030
Strategy Fund		  
          

Bonds

           

Russell Short Duration Bond Fund

    6 %    — %    — %    — %    — % 

Russell Strategic Bond Fund

    60      56      45      30      10   

Domestic Equities

           

Russell Real Estate Securities Fund

    3      4      4      5      6   

Russell U.S. Core Equity Fund

    9      11      14      18      23   

Russell U.S. Quantitative Equity Fund

    9      11      13      18      23   

Russell U.S. Small & Mid Cap Fund

    2      3      4      5      6   

International Equities

           

Russell Emerging Markets Fund

    1      2      3      4      5   

Russell Global Equity Fund

    3      3      4      5      7   

Russell International Developed Markets Fund

    7      10      13      15      20   
                              
   100 %    100 %    100 %    100 %    100 % 
                              
     Asset Allocation Targets as of March 1, 2009 through February 28, 2010  
Underlying Funds    2035
Strategy Fund		     2040
Strategy Fund		     2045
Strategy Fund		     2050
Strategy Fund		     In Retirement
Fund		  
          

Bonds

           

Russell Short Duration Bond Fund

    — %    — %    — %    — %    8 % 

Russell Strategic Bond Fund

    10      10      10      10      60   

Domestic Equities

           

Russell Real Estate Securities Fund

    6      6      6      6      3   

Russell U.S. Core Equity Fund

    23      23      23      23      8   

Russell U.S. Quantitative Equity Fund

    23      23      23      23      8   

Russell U.S. Small & Mid Cap Fund

    6      6      6      6      2   

International Equities

           

Russell Emerging Markets Fund

    5      5      5      5      1   

Russell Global Equity Fund

    7      7      7      7      3   

Russell International Developed Markets Fund

    20      20      20      20      7   
                              
   100 %    100 %    100 %    100 %    100 % 
                              
     Asset Allocation Targets as of March 1, 2010  
Underlying Funds    2010
Strategy Fund		     2015
Strategy Fund		     2020
Strategy Fund		     2025
Strategy Fund		     2030
Strategy Fund		  
          

Bonds

           

Russell Investment Grade Bond Fund

    20 %    18 %    8 %    — %    — % 

Russell Short Duration Bond Fund

    8      —      —      —      —   

Russell Strategic Bond Fund

    40      40      40      33      13   

Domestic Equities

           

Russell Real Estate Securities Fund

    3      3      4      5      6   

Russell U.S. Core Equity Fund

    6      9      11      15      20   

Russell U.S. Quantitative Equity Fund

    7      9      11      14      19   

Russell U.S. Small & Mid Cap Fund

    2      3      4      5      6   

International Equities

           

Russell Emerging Markets Fund

    1      2      3      3      4   

Russell Global Equity Fund

    6      6      7      9      11   

Russell International Developed Markets Fund

    7      10      12      16      21   
                              
   100 %    100 %    100 %    100 %    100 % 
                              

 

Notes to Quarterly Report   19

Table of Contents

Russell Investment Company

LifePoints® Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

     Asset Allocation Targets as of March 1, 2010  
Underlying Funds    2035
Strategy Fund		     2040
Strategy Fund		     2045
Strategy Fund		     2050
Strategy Fund		     In Retirement
Fund		  
          

Bonds

           

Russell Investment Grade Bond Fund

    — %    — %    — %    — %    20 % 

Russell Short Duration Bond Fund

    —      —      —      —      8   

Russell Strategic Bond Fund

    10      10      10      10      40   

Domestic Equities

           

Russell Real Estate Securities Fund

    6      6      6      6      3   

Russell U.S. Core Equity Fund

    21      21      23      21      6   

Russell U.S. Quantitative Equity Fund

    19      19      23      19      7   

Russell U.S. Small & Mid Cap Fund

    6      6      6      6      2   

International Equities

           

Russell Emerging Markets Fund

    5      5      5      5      1   

Russell Global Equity Fund

    12      12      7      12      6   

Russell International Developed Markets Fund

    21      21      20      21      7   
                              
   100 %    100 %    100 %    100 %    100 % 
                              

 

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 accounting principles generally accepted in the United Sates of America (“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. Generally, Underlying Fund portfolio securities are valued at the close of the principal exchange on which they are traded.

Fair value of securities is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. To increase consistency and comparability in fair value measurement, the fair value hierarchy was established to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The fair value hierarchy of inputs is summarized in the three broad levels listed below.

 

  •  

Level 1 — quoted prices (unadjusted) in active markets for identical investments

 

  •  

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

  •  

Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The levels associated with valuing the Funds’ investments for the period ended January 31, 2010 were level one for all Funds.

Investment Transactions

Investment 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.

 

20   Notes to Quarterly Report

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Russell Investment Company

LifePoints® Funds

Notes to Quarterly Report, continued — January 31, 2010 (Unaudited)

 

 

 

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

At January 31, 2010, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

 

     Conservative
Strategy Fund		     Moderate
Strategy Fund		     Balanced
Strategy Fund		     Growth
Strategy Fund		     Equity Growth
Strategy Fund		  
          

Cost of Investments

    $ 544,954,009      $ 1,048,872,963      $ 4,723,270,364      $ 3,401,863,985      $ 1,693,687,426   
                                        

Unrealized Appreciation

      8,163,106        6,272,332        71,929,515        45,371,883        28,178,502   

Unrealized Depreciation

      (2,080,729 )      (61,221,932 )      (566,263,012 )      (585,335,878 )      (390,542,660 ) 
                                        

Net Unrealized Appreciation (Depreciation)

    $ 6,082,377      $ (54,949,600 )    $ (494,333,497 )    $ (539,963,995 )    $ (362,364,158 ) 
                                        
     2010 Strategy
Fund		     2015 Strategy
Fund		     2020 Strategy
Fund		     2025 Strategy
Fund		     2030 Strategy
Fund		  

Cost of Investments

    $ 75,550,214      $ 17,744,924      $ 195,702,978      $ 18,854,074      $ 167,477,284   
                                        

Unrealized Appreciation

      109,799        1,490,621        72,745,782        1,229,459        1,602,460   

Unrealized Depreciation

      (49,548 )      —        (76,360,600 )      —        (12,685,426 ) 
                                        

Net Unrealized Appreciation (Depreciation)

    $ 60,251      $ 1,490,621      $ (3,614,818 )    $ 1,229,459      $ (11,082,966 ) 
                                        
     2035 Strategy
Fund		     2040 Strategy
Fund		     2045 Strategy
Fund		     2050 Strategy
Fund		     In Retirement
Fund		  

Cost of Investments

    $ 10,677,602      $ 127,695,453      $ 6,088,862      $ 11,331,084      $ 4,271,191   
                                        

Unrealized Appreciation

      585,173        1,222,038        243,926        2,076,510        519,860   

Unrealized Depreciation

      —        (7,847,106 )      (959 )      —        —   
                                        

Net Unrealized Appreciation (Depreciation)

    $ 585,173      $ (6,625,068 )    $ 242,967      $ 2,076,510      $ 519,860   
                                        

 

4.   Subsequent Events

Management has evaluated events or transactions that may have occurred since January 31, 2010 that would merit recognition or disclosure in the Quarterly Report. This evaluation was completed through March 31, 2010, the date the Quarterly Report was issued. During this review nothing was discovered which would required further disclosure within the Quarterly Report.

 

Notes to Quarterly Report   21

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Russell Investment Company

LifePoints® Funds

Shareholder Requests for Additional Information — January 31, 2010 (Unaudited)

 

 

 

A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third quarters of each fiscal year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354, (ii) at www.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 the Funds. A description of the P&P, Guidelines, Portfolio Holdings Disclosure Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional Information (“SAI”). The SAI is available (i) free of charge, upon request, by calling the Funds 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 contact your financial institution.

Some Financial Intermediaries may offer electronic delivery of the Funds’ prospectus and annual and semiannual reports. Please contact your Financial Intermediary for further details.

 

22   Shareholder Requests for Additional Information

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Russell Investment Company    909 A Street      800-787-7354
   Tacoma, Washington 98402      Fax: 253-591-3495
        www.russell.com

 

LOGO

LOGO

LOGO

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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.

 

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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/ Sandra Cavanaugh
  

Sandra Cavanaugh

Principal Executive Officer and Chief Executive Officer

Date: March 31, 2010

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/ Sandra Cavanaugh
  

Sandra Cavanaugh

Principal Executive Officer and Chief Executive Officer

Date: March 31, 2010

 

By:        /s/ Mark E. Swanson
  

Mark E. Swanson

Principal Financial Officer, Principal Accounting Officer and Treasurer

Date: March 31, 2010