Russell to launch U.S. Large Cap, U.S. Mid Cap Equity funds Feb. 6

By Toni Weeks

San Diego, Jan. 17 - Russell Investment Co. announced in an N-1A filing with the Securities and Exchange Commission its plans to launch two new U.S. equity funds on Feb. 6.

The Russell U.S. Large Cap Equity Fund and the Russell U.S. Mid Cap Equity Fund will both seek long-term capital growth. Both funds will offer class A, class C and class S shares.

The Russell U.S. Large Cap Equity Fund will invest primarily in common stocks of large-capitalization U.S. companies. It may also invest in common stocks of mid-cap companies and in securities of non-U.S. issuers.

Under normal conditions, the fund will invest at least 80% of its net assets in large-cap equity securities economically tied to the U.S. The fund will typically pursue a strategy to be fully invested by exposing its cash reserves to the performance of appropriate markets by purchasing equity securities and/or derivates, which typically include index futures contracts.

The fund will employ a multi-style and multi-manager approach, with portions of the fund allocated to different money managers with distinct investment styles. The money managers will be Ceredex Value Advisors LLC, Columbus Circle Investors, Institutional Capital LLC, Jacobs Levy Equity Management Inc. and Sustainable Growth Advisers, LP.

Fund assets not allocated to money managers will be managed by Seattle-based Russell Investment Management Co., the fund's investment adviser. David L. Hintz will serve as the portfolio manager.

Class A share purchases will be assessed a 5.75% maximum sales charge and a 1% maximum deferred sales charge. All three share classes will be subject to a 0.7% advisory fee. Taking into account distribution fees, other expenses and a fee waiver agreement, the net annual fund operating expenses will be 1.1%, 1.85% and 0.85% for class A, class C and class S shares, respectively. The fee waiver expires Feb. 28, 2013.

The ticker symbols will be "RLCZX" for class A, "RLCCX" for class C and "RLCSX" for class S shares.

The Russell U.S. Mid Cap Equity Fund will invest primarily in common stocks of medium-capitalization U.S. companies but may also invest in common stocks of small-cap companies and securities of non-U.S. issuers.

Under normal market conditions, the fund will invest at least 80% of its net assets in medium-cap equity securities economically tied to the U.S. It may also invest a portion of its assets in securities of real estate investment trusts. The fund will typically pursue a strategy to be fully invested by exposing its cash reserves to the performance of appropriate markets by purchasing equity securities and/or derivates, which typically include index futures contracts.

This fund also employs the same multi-style, multi-manager approach as the previous fund. The money managers will be Arbor Capital Management, LLC, Ceredex and Jacobs Levy Equity Management; any assets not allocated to the money managers will be managed by Russell. Richard Yasenchak will serve as the fund's portfolio manager.

The fund's class A shares will be assessed a 5.75% maximum sales charge and a 1% maximum deferred sales charge. The advisory fee will be 0.8% for each share class. Including distribution and other fees and the fee waiver agreement, the net annual fund operating expenses will be 1.2%, 1.95% and 0.95% for class A, class C and class S shares, respectively.

The ticker symbols will be "RMCAX" for class A, "RMCCX" for class C and "RMCSX" for class S shares.

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