TAX-MANAGED U.S. MID & SMALL CAP FUND
Money Manager and Russell Investments Overview
Russell Investments’ approach

Russell Investments portfolio manager(s)Russell Investments uses a multi-asset approach to investing, combining asset
allocation, manager selection and dynamic portfolio management in its investment
portfolios. Using this approach as a framework for mutual fund construction, we
research, monitor, hire and terminate (subject to Fund Board approval) money
managers from around the world and strategically allocate fund assets to them. We
oversee all investment advisory services to the Fund and manage assets notallocated to money managers.

Megan Roach, Senior Director, Co-Head of Equity Portfolio Management, and Nick
Haupt, Portfolio Manager, Equity, have primary responsibility for the management of
the Fund. Ms. Roach has managed the Fund since March 2015 and Mr. Haupt has
managed the Fund since December 2023.

The Fund
The Tax-Managed U.S. Mid & Small Cap Fund seeks to provide long term capital
growth on an after-tax basis. The Fund invests principally in common stocks of
medium and small capitalization U.S. companies. The Fund seeks to realize capital
growth while considering shareholder tax consequences arising from its portfolio
management activities.
The Fund’s performance benchmark is the Russell 2500 Index§.

The portfolio managers’ role
The Russell Investments portfolio managers are responsible for identifying andselecting the strategies and money managers included in the Fund and determining
the weight for each assignment. The portfolio managers manage the Fund on a daily
basis to help keep it on track, constantly monitoring risk and return expectations at the
total fund level and making changes when deemed appropriate and/or necessary.
Multiple resources from across the firm are used to help determine what is believed tobe the best combination of managers and strategies. Manager research and capital
markets research are just some of the tools at the portfolio managers’ disposal to help
identify opportunities and manage risk.

Fund mosaic

This mosaic depicts, at a specific point in time, the approximate relative weighting of the managers and strategies within theFund plotted on the basis of cap size and style against fund benchmark (▲). Positions on this mosaic change over time asallocations and holdings change. The circle size represents the relative size of each allocation in the Fund.
Russell Investment Management, LLC (RIM) manages the Fund's liquidity reserves and may manage assets to effect the
Fund's investment strategies and/or to modify the Fund's overall portfolio characteristics to seek to achieve the desired
risk/return profile for the Fund.

Russell Investments / Tax-Managed U.S. Mid & Small Cap Fund

Not a Deposit. Not FDIC Insured. May Lose Value. Not Bank Guaranteed. Not Insured by any Federal Government Agency.

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Tax-Managed U.S. Mid & Small Cap FundManagers and Strategies Summary & Target Allocation of Fund Assets
The percentages below represent the target allocation of the Fund’s assets to each money manager’s strategy and Russell Investment Management, LLC (“RIM”) strategy.
RIM may change a Fund’s asset allocation at any time, including not allocating Fund assets to one or more money manager strategies.
FIRM NAMETARGET ALLOCATIONINVESTMENT FOCUS

ROLE

DETAILS OF FUND ROLE

Ancora Advisors, LLC

9%Invests in small and mid cap special situations suchas corporate restructuring and spinoffs, underfollowed companies, and franchise stocks selling at
temporary discounts.

Market-oriented

Ancora is opportunistic in seeking companies that are in special
situations. The strategy focuses on market inefficiencies that the firm
believes to be persistent and lucrative within the U.S. small and mid
cap space.

BAMCO, Inc.

3%

BAMCO, Inc. (Baron) has a fundamental, bottom-up,
and research driven investment approach. They
identify small cap biotechnology companies with afocus on companies with above-industry sales growth
and revisions as well as below-industry balance sheet
leverage and price volatility.

Biotechnology

Baron plays a specialist role in focusing primarily on selecting U.S.
small cap biotechnology stocks with larger weights focused on laterstage companies, diversification by investment themes/stages ofclinical trials, and limited exposure to early stage/single drug
companies.

Copeland Capital Management, LLC

8%

Invests in small/mid cap companies with a history ofstrong dividend growth.

Market-oriented

Russell Investments believes dividend growth strategies can beeffective in the U.S. small/mid cap market, and that Copeland is
especially skilled at identifying which companies are more likely tosustain their historical dividend growth.

DePrince, Race & Zollo, Inc.

11%

Invests in small and mid-cap companies with aboveaverage dividend yield that have a catalyst for nearterm improvement.

Value

DRZ is a yield-focused value manager that has a strong track recordof skillfully rotating the portfolio in response to evolving valuation
opportunities.

Penn Capital Management Company,
LLC

5%

Invests in small and mid-cap companies with improving
business fundamentals expected to pay down debt,
refinance at more favorable rates, or buy backcompany shares.

Market-oriented

Penn’s focus on capital structure driven opportunities and thecrossover of ideas from the high-yield segment of the market are themain distinguishing elements of their process.

Polen Capital Management, LLC

7%

Invests in concentrated stock portfolio consisting of
sophisticated companies with what it believes to havestrong competitive advantages and potential forsustained growth.

GrowthEmphasizes companies with what it believes to have strong
competitive advantages that are expected to consistently generateorganic revenue growth, have stable to improving margins, high return
ratios, positive free cash flow, and above average earnings growth.

Royce & Associates, LP

9%

Invests in smaller cap companies with dividends or
buybacks, high returns on invested capital, plus
attractive valuations.

Value

Royce is suitable for a defensive value role in the Fund. The teamseeks to invest in out of favor quality stocks, which allows them to
exploit the market’s short-termism through a robust research process
and valuation discipline

Summit Creek Advisors, LLC

7%

Conducts a bottom-up investment process that
identifies high quality companies with what it believes
to be consistent and sustainable revenue andearnings growth over a 3- to 5-year investment
horizon.

GrowthThrough in-depth fundamental research, Summit Creek searches forcompanies with low financial leverage, high return on equity, strong
cash flow and significant management ownership. The team creates
detailed financial models on all portfolio holdings and fully evaluates acompany’s competitive positioning and ability to execute on thebusiness plan.

All underlying third-party money managers of this Fund are non-discretionary money managers. Russell Investment Management, LLC manages the respective portions of the Fund’s assets based upon model portfolios provided by each firm.
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Tax-Managed U.S. Mid & Small Cap FundManagers and Strategies Summary

FIRM NAME
Russell Investment Management, LLC(RIM)**TARGET ALLOCATION41%

INVESTMENT FOCUS

ROLE

Directly manages a positioning strategy within theFund, which is designed with the dual mandate of
improving the Fund’s after-tax returns as well as
controlling the Fund-level exposures and/or risks tomeet preferred positioning. The active tax management
aspect of the strategy is focused on improving the aftertax returns of the Fund by using active tax
management strategies including tax-loss harvesting,deferral of gains, tax-lot management, andmanagement of wash sales. This activity takes placeacross the entire Fund.

Positioning
Strategies, Tax
Management,
and Cash
Reserves

DETAILS OF FUND ROLE
RIM oversees all investment advisory services to the Fund andmanages all Fund assets. This includes the Fund’s positioning strategy,
which helps the Fund to achieve its desired risk/return profile, and theactive tax management strategy that is implemented across the entire
Fund. RIM also manages the Fund’s liquidity reserve.

**RIM manages Fund assets not allocated to money manager strategies by utilizing quantitative and/or rules-based processes and qualitative analysis to assess Fund characteristics and invest in securities and instruments, which provide the desired overall Fund exposures.
RIM also manages the Fund’s cash balances and cash reserves. RIM generally seeks to obtain market exposure for this cash that corresponds to the Fund’s benchmark exposures, but RIM may also reduce the Fund’s market exposure and/or utilize the Fund’s liquidity
reserve to manage overall Fund exposures.
Russell Investments / Tax-Managed U.S. Mid & Small Cap Fund

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Tax-Managed U.S. Mid & Small Cap Fund

Ancora Advisors, LLC
Firm backgroundManager profile

Ancora Advisors, LLC is an employee-owned
investment advisory firm. Ancora offers
comprehensive investment solutions for
institutions and individuals in the areas of
fixed income, equities, global asset
allocation, alternative investments andretirement plans.

Ancora Advisors, LLC (Ancora) was added to the Tax-Managed U.S. Mid & Small Cap Fund in 2017. Dan Thelen is theportfolio manager leading this small to mid-cap strategy. He is based in Ancora’s Birmingham, MI office.

Headquarters: Birmingham, MI
Founded: 2003
Lead manager: Dan Thelen, CFA____________________________________
Asset class: U.S. equity
Number of holdings: 50-70
Capitalization level: Small and mid-cap

As a non-discretionary manager to the Fund, Ancora provides a model portfolio to Russell Investment Management, LLC(RIM) representing Ancora’s investment recommendations, based upon which RIM purchases and sells securities for theFund. RIM may deviate from the model portfolio provided by Ancora, but generally intends to implement the portfolio
provided by Ancora.
What this manager brings to the Fund
Ancora is opportunistic in seeking companies that are in special situations such as corporate restructuring and spinoffs,
companies emerging from bankruptcy, under-followed companies, and franchise stocks selling at temporary discounts.
Investment process
Ancora’s strategy focuses on market inefficiencies that the firm believes to be persistent and potentially lucrative within
the U.S. small- to mid-capitalization space. Ancora attempts to take advantage of short-term stock price dislocations that
may arise through periods when market trading volumes are thin (e.g. around holidays). In evaluating these special
situations, Ancora screens on key growth and profitability factors including returns on capital, long-term demonstrated
growth rates and cash flow returns on equity. The investment team further screens based on each company’s valuation
relative to its industry.
Ancora reviews the holdings periodically on a bottom-up basis to ensure they are consistent with Ancora's view of theeconomy on a top-down basis. During the research and due diligence process, the portfolio manager and the analysts
will talk with company management, customers and suppliers to better understand the company’s prospects.
Russell Investments’ manager analysis
Dan Thelen has 15+ years’ experience as a micro-mid cap investor and Russell Investments believes theenvironment at Ancora provides him with an unencumbered opportunity to focus on generating excess
returns. Thelen is, in Russell Investments’ view, among the top tier of investors in terms of passion, focus on
performance and continuous process improvement. Thelen’s focus on special situations and intense
performance orientation stood out to Russell Investments immediately during the first research meeting in2013 and this drove Russell Investments’ prioritization to become one of the first institutional investors in his
micro and small cap strategy in 2014.

Russell Investments / Tax-Managed U.S. Mid & Small Cap Fund

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Tax-Managed U.S. Mid & Small Cap FundBAMCO, Inc.
Firm backgroundManager profile

BAMCO, Inc. (Baron) was founded in 1982
by Ron Baron, the Firm's CEO and head of
the investment team. Baron employs afundamental, bottom up, and research driven
investment approach.

Baron was added to the Tax-Managed U.S. Mid & Small Cap Fund in 2021. Portfolio managers Neal Kaufman andWendy Lin are responsible for all investment decisions. Kaufman and Lin work collaboratively with the research analysts
to generate ideas, evaluate businesses, and formulate investment decisions.

Headquarters: New York, NY
Founded: 1982
Lead managers: Neal Kaufman and Wendy
Lin____________________________________
Asset class: U.S. equity
Number of holdings: 40-50
Capitalization level: Small and mid-cap

As a non-discretionary manager to the Fund, Baron provides a model portfolio to Russell Investment Management, LLC(RIM) representing Baron’s investment recommendations, based upon which RIM purchases and sells securities for theFund. RIM may deviate from the model portfolio provided by Baron, but generally intends to implement the portfolio
provided by Baron.
What this manager brings to the Fund
Baron’s investment philosophy and process, based on fundamental investing, has been developed over time andsuccessfully applied to different markets and different asset classes. Their research driven approach, active
management style, and stock selection process have resulted in long-term outperformance, and Russell Investments
expects this approach will continue to be favorable in the future.
Investment process
Baron has a fundamental, bottom-up, and research driven investment approach. They identify companies they believe
have strong fundamentals, regardless of the macroeconomic environment, and invest for the long term. It is highly
important for them to review a company's future growth potential, not just its current valuation. Baron searches forcompanies with unique business models and invests in them when their prices are below their estimates of intrinsic
value. For selecting biotechnology investments specifically, Baron focuses on businesses that solve problems, whether
by reducing costs, enhancing efficiency, and/or improving outcomes. Secular growth themes represented in Baron’s
portfolio include genomics, innovative new drugs, drug development software and technology platforms, synthetic
biology, and antibody technologies.
Russell Investments’ manager analysis
Baron utilizes a fundamental approach to constructing a 40-50 stock portfolio of companies within the U.S.
small cap biotechnology industry with a focus on those with above benchmark sales growth and revenue
revisions as well as below benchmark balance sheet leverage and price volatility. Investments are typicallymade with a three-year horizon, which historically have resulted in moderate annualized turnover of 35-45%.
The team adheres to a thoughtful positioning sizing methodology with larger weights focused on later stage
companies, diversification by investment themes/stages of clinical trials, and limited exposure to earlystage/single drug companies. Excess returns are expected to be predominately driven by security selection.
The portfolio is typically expected to exhibit a quality bias with lower volatility, which may lead the strategy tounderperform when the overall Biotech industry performance is strong but is expected to be beneficial when
the overall Biotech industry underperforms the broad market.

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Tax-Managed U.S. Mid & Small Cap Fund

Copeland Capital Management, LLC
Firm backgroundManager profile

Copeland Capital Management, LLC is aboutique investment management firm
specializing in dividend growth investing. The
firm manages portfolios for high net worth
individuals and many types of institutions,
including corporate pension plans, educations
and religious endowments, charitablefoundations, health care institutions, andmunicipalities.

Copeland Capital Management, LLC (Copeland) was added to the Tax-Managed U.S. Mid & Small Cap Fund in
December 2017. Mark Giovanniello is the firm’s CIO and is the key decision maker, backed by a robust investment team.

Headquarters: Conshohocken, PA
Founded: 2005
Lead manager: Mark Giovanniello, CFA____________________________________
Asset class: U.S. equity
Number of holdings: 40-50
Capitalization level: Small and mid-cap

As a non-discretionary manager to the Fund, Copeland provides a model portfolio to Russell Investment Management,
LLC (RIM) representing Copeland’s investment recommendations, based upon which RIM purchases and sells securities
for the Fund. RIM may deviate from the model portfolio provided by Copeland, but generally intends to implement theportfolio provided by Copeland.
What this manager brings to the Fund
Russell Investments believes dividend growth strategies can be effective in the U.S. small/mid cap market, and that
Copeland is especially skilled at identifying which companies are more likely to sustain their historical dividend growth.
Investment process
Copeland’s strategy generally invests in domestic companies that have historical track records of consistent dividend
growth. Dividend growth is more important to the strategy than absolute level of dividends.
Copeland believes that a company’s dividend growth rate is a significant driver of its total return. Strategy holdings are
selected using a proprietary multi-factor quantitative model. The model seeks companies with a history of consistentdividend increases and financial stability that Copeland believes will continue. The highest-ranking names are thenevaluated through a fundamental research process.
The investment process is collaborative and typically includes every member of the investment team. Each analyst has
specific sector coverage responsibility. The team meets on a daily basis to discuss current holdings in the portfolio,
pertinent macro-economic and geopolitical news, and trading recommendations, if any. Every team member provides
input in determining the names that are included in the portfolio. The portfolio manager, Mark Giovanniello, has the final
decision in determining names for inclusion as well as portfolio weights.
Russell Investments’ manager analysis
Copeland was founded in 2005 with a focus on U.S. large cap securities, but the hiring of Mark Giovannielloand launch of the firm’s small- to mid-cap strategies in 2009 catapulted those strategies to flagship status at
the firm, which prompted Russell Investments to begin researching them in 2012. Russell Investments
values Copeland’s 100% employee-owned status as well as the uniqueness of its investment philosophy
relative to small cap peers.
Copeland is expected to outperform when high dividend growth, higher quality factors (such as return on
equity), and stocks with lower earnings variability and price volatility are rewarded. Copeland is expected tounderperform in aggressive stock market rallies led by higher risk and volatility market segments.

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Tax-Managed U.S. Mid & Small Cap Fund

DePrince, Race & Zollo, Inc.
Firm backgroundManager profile

DePrince, Race & Zollo , Inc. (DRZ) is an
employee owned, boutique institutional asset
management firm. The firm provides services
to investment companies, pension and profitsharing plans, pooled investment vehicles,
corporations, foundations, endowments,
hospitals, healthcare companies, publicfunds, unions, and Taft Hartley plans.

DRZ was added to the Tax-Managed U.S. Mid & Small Cap Fund in 2021. Randy Renfrow is the portfolio manager with atalented team of analysts supporting him.

Headquarters: Winter Park, FL
Founded: 1995
Lead manager: Randy Renfrow____________________________________
Asset class: U.S. equity
Number of holdings: 70-90
Capitalization level: Small and mid-cap

As a non-discretionary manager to the Fund, DRZ provides a model portfolio to Russell Investment Management, LLC(RIM) representing DRZ’s investment recommendations, based upon which RIM purchases and sells securities for theFund. RIM may deviate from the model portfolio provided by DRZ, but generally intends to implement the portfolio
provided by DRZ.
What this manager brings to the Fund
DRZ’s Small-Mid Cap Value strategy emphasizes stocks with attractive relative value and fundamental catalysts. The
approach also includes a dividend requirement that helps to focus the stock selection effort on profitable, cash flow
generative companies.
Investment process
DRZ believes that a valuation-sensitive approach to dividend yield investing can provide downside mitigation andreduces total portfolio volatility. The firm also believes that dividend yield provides the most reliable valuation measureand offers concrete evidence of real earnings. DRZ’s investment philosophy is based on the belief that undervalued
stocks with an above-average dividend yield and the existence of an imminent fundamental catalyst provide theopportunity for total returns with reduced volatility.
This bottom-up process strives to identify companies with strong balance sheets where fundamentals are expected to
improve. Sector and industry weights are a residual of the stock selection process, and the portfolio is expected to havesignificant sector deviations from the benchmark. DRZ will also rotate the portfolio through the market cycle in responseto changing valuation and catalyst signals. DRZ does not necessarily seek the highest dividend yield stocks but isfocused on identifying the best investment opportunities within the dividend paying universe of U.S. small cap
companies.
Russell Investments’ manager analysis
Russell Investments believes that DRZ will add value by identifying highly discounted securities with above
average dividend yield that it believes are poised to experience positive fundamental change. Russell
Investments believes DRZ’s sell-discipline is robust and the manager is particularly effective at selling when
specific catalysts fail to materialize or when companies experience fundamental disappointments. Russell
Investments also believes that DRZ’s attention to downside risk and a strong emphasis on dividend yield
differentiate DRZ from peers.
DRZ is generally expected to perform best in yield-oriented market environments where higher than average
dividend yield trends exist in the market. DRZ will likely face headwinds in speculative markets when yield is
not rewarded.

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Tax-Managed U.S. Mid & Small Cap Fund

Penn Capital Management Company, LLC
Firm backgroundManager profile

Penn Capital Management Company, LLC isa boutique, SEC-registered investment
management firm that specializes in theleveraged finance market—the credit andequity of non-investment grade companies.

Penn Capital Management Company, LLC (Penn) was added to the Tax-Managed U.S. Mid & Small Cap Fund in August2023. The small- to mid-cap strategy used in this fund is led by Eric Green, who also serves as the CIO of Equity for the
firm.

Headquarters: Philadelphia, PA
Founded: 1987
Lead manager: Eric Green, CFA____________________________________
Asset class: U.S. equity
Number of holdings: 40-80
Capitalization level: Small and mid-cap

As a non-discretionary manager to the Fund, Penn provides a model portfolio to Russell Investment Management, LLC(RIM) representing Penn’s investment recommendations, based upon which RIM purchases and sells securities for theFund. RIM may deviate from the model portfolio provided by Penn, but generally intends to implement the portfolio
provided by Penn.
What this manager brings to the Fund
Russell Investments believes Penn’s credit research expertise enables it to view a company from a unique perspective.
Penn seeks to exploit inefficiencies between the equity and debt markets that are often ignored by traditional equity
investors. This may allow Penn to identify attractive companies before equity market participants.
Investment process
For more than 20 years, Penn has maintained an integrated credit and equity research process. The firm believes that, atboth a micro and macro level, credit markets can act as an early indication for trends in the equity markets. It believes
that credit cycles typically drive economic cycles, and bond prices tend to lead equity prices.
The firm believes that its credit research expertise provides an advantage in the early identification of companies whichhave the potential to improve their earnings and to re-rate by improving their capital structure. These companies withimproving business fundamentals are expected to pay down debt, refinance at more favorable rates, or buy backcompany shares. Penn also includes companies with strong balance sheets and a conservative cash flow profile.
Russell Investments believes that Penn’s efforts to identify multiple catalysts driving a company’s future earnings growthand prospective price appreciation potential differentiates it from peers. The focus on capital structure driven
opportunities and the crossover of ideas from the high yield credit market are distinguishing elements of Penn’s process.
Russell Investments’ manager analysis
Russell Investments has been researching Penn’s equity strategies since 2007. Penn employs a large teamof portfolio managers and analysts who focus on analysis of each company’s complete capital structure forpotential investment in the debt and/or equity securities of each company. Russell Investments finds thefirm’s competitive culture to be a notable advantage versus peers of a similar size.
With a broad mix of both growth and value stocks, combined with an emphasis on multiple catalysts, Penn’s
strategy has the potential to perform well in a variety of market environments. A period of a prolonged capital
market crisis where companies are unable to refinance or borrow may prove challenging for Penn’s
investment process, as will general equity market sell offs where higher volatility securities are out of favor.

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Tax-Managed U.S. Mid & Small Cap Fund

Polen Capital Management, LLC
Firm backgroundManager profile

Polen Capital Management, LLC is a highconviction growth investment manager.

Polen Capital Management, LLC (Polen) was added to the Tax-Managed U.S. Mid & Small Cap Fund in November 2020.
The small cap team at Polen is led by experienced portfolio manager Rayna Lesser Hannaway.

Headquarters: Boston, MA

As a non-discretionary manager to the Fund, Polen provides a model portfolio to Russell Investment Management, LLC(RIM) representing Polen’s investment recommendations, based upon which RIM purchases and sells securities for theFund. RIM may deviate from the model portfolio provided by Polen, but generally intends to implement the portfolio
provided by Polen.

Founded: 1979
Lead managers: Rayna Lesser Hannaway____________________________________

What this manager brings to the Fund

Asset class: U.S. equity
Number of holdings: 25-30

Polen’s U.S. small cap growth strategy seeks to achieve long-term growth by investing in a concentrated stock portfolio
consisting of quality-driven companies with what it believes to have strong competitive advantages and potential forsustained growth.

Capitalization level: Small cap

Investment process
Portfolio manager, Rayna Lesser Hannaway, is supported by a team of six analysts who display strong alignment withthe team’s philosophy and security selection criteria emphasizing companies with what it believes to have strong
competitive advantages that are expected to consistently generate organic revenue growth, have stable to improving
margins, high return ratios, positive free cash flow, and above average earnings growth.
Russell Investments’ manager analysis
Polen’s strategy is at a relatively attractive early point in its lifecycle with moderate levels of assets undermanagement. Russell Investments views this as conducive to ample investment flexibility, as well as highmotivation among the investment team.
Russell Investments views the team’s focus on a long term 3-5 year investment horizon and concentrated
portfolio of 25-30 stocks favorably and expects the firm’s strong culture of debate and challenge to support
strong excess return generation over the market cycle.
Polen is typically expected to perform well in growth-led market environments and in periods when quality
characteristics such as high returns on capital and low financial leverage are rewarded. Polen has performed
well in environments led by less volatile stocks. Performance is likely to be challenged in low quality or highbeta rallies or when there is significant valuation compression in quality-growth stocks.

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Tax-Managed U.S. Mid & Small Cap Fund

Royce & Associates, LP
Firm backgroundManager profile

Royce & Associates (Royce) is a small caps
specialist asset management firm with a long
history of investing since 1972. After theacquisition of its parent, Legg Mason by
Franklin Templeton, Royce continues tooperate as an independent investment
organization with its own brand, underscoring
the distinctiveness of Royce’s investment
culture and processes.

Royce’s Small Cap Quality Value Strategy was added to the Tax-Managed U.S. Mid & Small Cap Fund in August 2023.
This strategy at Royce is led by an experienced portfolio manager Miles Lewis.

Headquarters: New York, NY
Founded: 1971
Lead manager: Miles Lewis____________________________________
Asset class: U.S Equity
Number of holdings: approximately 85

As a non-discretionary manager to the Fund, Royce provides a model portfolio to Russell Investment Management, LLC(RIM) representing Royce’s investment recommendations, based upon which RIM purchases and sells securities for theFund. RIM may deviate from the model portfolio provided by Royce, but generally intends to implement the portfolio
provided by Royce.
What this manager brings to the Fund
Royce is suitable for a defensive value role in the Fund. The team seeks to invest in out of favor quality stocks, whichallows them to exploit the market’s short-termism through a robust research process and valuation discipline.
Investment process
Portfolio manager, Miles Lewis, is supported by a team of three analysts. The team invests at the intersection of quality
and value—they look for companies that are returning capital to shareholders through dividends or buybacks, haveattractive returns on capital, and are trading at attractive valuations. Quality characteristics include strong free cash flow
generation, organic growth, low capital intensity and lower volatility of returns and margins. The team follows a robust
research process with an emphasis on understanding the nature of any issues facing the stock to evaluate if it iscyclical/transitory or structural.

Capitalization level: Small cap

Russell Investments’ manager analysis
The Royce Small Cap Quality Value strategy is led by an experienced portfolio manager with the support ofthree dedicated team members. The team displays a disciplined and detailed fundamental research processaligned with its philosophical beliefs.
The strategy is expected to outperform when quality stocks (high ROE, low earnings variability) are in favor.
The strategy is typically expected to struggle in low-quality and/or momentum-driven markets and/or whenhigh beta portfolios are rewarded.

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Tax-Managed U.S. Mid & Small Cap Fund

Summit Creek Advisors, LLC
Firm backgroundManager profile

Summit Creek Advisors LLC is an emerging
small cap growth investment management
firm. The firm provides separately managed
accounts to corporate and public pensions,foundations and endowments, family offices
and high net worth individuals.

Summit Creek Advisors LLC (Summit Creek) was added to the Tax-Managed U.S. Mid & Small Cap Fund in 2010. Joe
Docter leads this small/mid cap growth manager assignment at Summit Creek.

Headquarters: Minneapolis, MN

What this manager brings to the FundFounded: 2005
Lead managers: Joe Docter, CFA and Adam
Benson, CFA

Through in-depth fundamental research, Summit Creek searches for companies with low financial leverage, high returnon equity, strong cash flow and significant management ownership. The team creates detailed financial models on all
portfolio holdings and fully evaluates a company’s competitive positioning and ability to execute on the business plan.

____________________________________

Investment process

Asset class: U.S. equity
Number of holdings: 50-55
Capitalization level: Small and mid-cap

As a non-discretionary manager to the Fund, Summit Creek provides a model portfolio to Russell Investment
Management, LLC (RIM) representing Summit Creek’s investment recommendations, based upon which RIM purchases
and sells securities for the Fund. RIM may deviate from the model portfolio provided by Summit Creek, but generally
intends to implement the portfolio provided by Summit Creek.

Summit Creek’s investment team uses a bottom-up investment process to identify established companies with what it
believes to be consistent and sustainable revenue and earnings growth over a 3 to 5-year investment horizon. Throughin-depth fundamental research, the firm searches for companies with low financial leverage, high return on equity, strong
cash flow and significant management ownership.
Once a stock is in the portfolio, Summit Creek continues to perform its rigorous research. The team creates detailed
financial models on all portfolio holdings and fully evaluates a company’s competitive positioning and ability to execute on
the business plan. In addition, Summit Creek has frequent discussions with company management, competitors,
suppliers, and attends numerous investor conferences.
Summit Creek’s portfolio has approximately 50 stocks, and a longer-term outlook, which results in a relatively low
turnover. This is intended to make Summit Creek’s portfolio more tax-efficient and consistent with the Fund’s investment
objective of seeking to provide long-term capital growth on an after-tax basis.
Russell Investments’ manager analysis
Russell Investments believes the firm possesses an experienced and motivated team, an establishedinvestment discipline, a good long-term track record, and optimal ownership structure and research
environment.
Russell Investments has been following the team at Summit Creek for several years, since the team waswith a previous firm. The team founded Summit Creek in 2005.
Summit Creek will likely perform better when growth leads and when price volatility and earnings variability
are low. The firm will likely underperform when value is leading, when lower quality stocks are leading, and in
more volatile markets.

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Tax-Managed U.S. Mid & Small Cap Fund

Russell Investment Management, LLC
Firm background

RIM oversees all investment advisory services to the Fund and manages assets not allocated to managers.

Russell Investment Management, LLC (RIM)
is the advisor to Russell Investment
Company (RIC) Funds. Russell Investments’ownership is composed of a majority stake
held by funds managed by TA Associates
Management, L.P. with minority stakes held
by funds managed by Reverence CapitalPartners, L.P., certain of Russell Investments’
employees, and Hamilton Lane Advisors,
LLC. Russell Investments provides asset
management and investment services toinstitutional and individual investors aroundthe world.

Manager and strategy oversight

Headquarters: Seattle, WA
Founded: 1936____________________________________POSITIONING STRATEGIES, TAX
MANAGEMENT, & CASH RESERVES
Asset class: U.S. equity
Number of holdings: 100-500
Capitalization level: Small and mid-cap

RIM’s portfolio managers seek to ensure that Fund outcomes are consistent with Fund objectives. The portfolio manager
and analysts track the effectiveness of every money manager and strategy in the Fund. Occasionally, adjustments may
be necessary due to reasons such as a change in control at a money manager, the opportunity to select anothermanager or strategy the portfolio manager believes offers an investment proposition that would help improve the fund, orchanges in market dynamics.
Any significant Fund changes must be validated through an internal governance process to ensure all key considerations
were addressed by the portfolio manager. Money manager changes are also subject to approval by the Fund’s Board ofTrustees.
Investment management
RIM manages a positioning strategy within the Fund, which is designed with the dual mandate of improving the Fund’s
after-tax returns as well as controlling Fund-level exposures and/or risks to meet preferred positioning. Positioning
strategies are customized portfolios directly managed for use within the total portfolio. Portfolio managers use positioning
strategies to seek excess return and manage portfolio risks by targeting specific exposures. These strategies are used inconjunction with allocations to active manager strategies to reflect Russell Investments’ strategic and dynamic insights
with integrated liquidity and risk management.
The positioning strategy used in this Fund is a dedicated portion of the Fund assets that can be rebalanced as needed by
the portfolio managers to keep the total portfolio aligned with Russell Investments’ strategic beliefs (e.g. value,
momentum, quality and volatility) as well as the Fund’s preferred positioning. This allows the portfolio manager toexpress Russell Investments’ views across multiple factor and industry exposures simultaneously while regularly
adapting to changing markets and manager portfolios.
Additionally, this strategy, in conjunction with RIM’s overall management of the total fund, also engages in active tax
management strategies such as tax-loss harvesting, deferral of gains, tax-lot management and management of wash
sales in order to further enhance the Fund’s after-tax returns. RIM’s management of the entire fund allows the firm topurchase and sell securities in an effort to make optimal tradeoffs at the total fund level between fund exposures and tax
management activities. RIM also strives to enhance the ongoing tax efficiency of the Fund by seeking to manage wash
sales and assisting in the tax management of manager weight changes and transitions.
Managing the liquidity reserve
Every RIC mutual fund maintains cash reserves, which is cash awaiting investment or held to meet redemption requests
or to pay expenses. This Fund typically exposes all or a portion of its cash to the performance of appropriate markets bypurchasing equity securities and/or derivatives (also known as “equitization”), which typically includes index futurescontracts. The Fund invests any remaining cash in an unregistered cash management fund advised by RIM.

Russell Investments / Tax-Managed U.S. Mid & Small Cap Fund

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For more information on Russell Investment Company Funds, contact
your investment professional or plan administrator for assistance.

IMPORTANT RISK DISCLOSURES
Mutual Fund investing involves risks, principal loss is possible.
Money managers listed are current as of August 31, 2024. Subject to the Fund's Board approval, Russell Investments has the right to engage or terminate a money manager at any time and without a shareholder vote, based on an exemptive order from the Securities
and Exchange Commission. Investments in the Funds are not deposits with or other liabilities of any of the money managers and are subject to investment risk, including loss of income and principal invested and possible delays in payment of redemption proceeds.
The money managers do not guarantee the performance of any Fund or any particular rate of return.
Small capitalization (small cap) investments generally involve stocks of companies with a market capitalization based on the Russell 2000® Index. Investments in small cap, micro cap, and companies with capitalization smaller than the Russell 2000 ® Index are
subject to the risks of common stocks, including the risks of investing in securities of large and medium capitalization companies. Investments in smaller capitalization companies may involve greater risks as, generally, the smaller the company size, the greater theserisks. In addition, micro capitalization companies and companies with capitalization smaller than the Russell 2000 ® Index may be newly formed with more limited track records and less publicly available information.
Market-oriented investments are generally subject to risks similar to that of both growth and value style investing.
Value investments focus on stocks of income-producing companies whose price is low relative to one or more valuation factors, such as earnings or book value. Such investments are subject to risks that their intrinsic values may never be realized by the market, or,such stock may turn out not to have been undervalued. Investors should carefully consider the additional risks involved in value investments.
Growth investments focus on stocks of companies whose earnings/profitability are accelerating in the short term or have grown consistently over the long term. Such investments may provide minimal dividends which could otherwise cushion stock prices in a market
decline. Stock value may rise and fall significantly based, in part, on investors' perceptions of the company, rather than on fundamental analysis of the stocks. Investors should carefully consider the additional risks involved in growth investments.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk
and increase return could, at certain times, unintentionally reduce returns.

Fund objectives, risks, charges and expenses should be carefully considered before investing. A summary prospectus, if available, or a prospectus
containing this, and other important information can be obtained by calling 800-787-7354 or by visiting russellinvestments.com. Please read aprospectus carefully before investing.
The investment styles employed by a Fund's money managers may not be complementary. This concentration may be beneficial or detrimental to a Fund's performance depending upon the performance of those securities and the overall economic environment. The
multi-manager approach could increase a Fund's portfolio turnover rates which may result in higher levels of realized capital gains or losses with respect to a Fund's portfolio securities, higher brokerage commissions and other transaction costs.
Income from funds managed for tax efficiency may be subject to an alternative minimum tax, and/or any applicable state and local taxes.
Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.
§Indexes are unmanaged and cannot be invested in directly. The benchmark shown represents the Fund's performance benchmark, which may be different from the Fund's regulatory benchmark included in the Fund's Prospectus and Annual Reports. The Russell

2500 Index measures the performance of the small to midcap segment of the U.S. equity universe. The Russell 2500
market cap and current index membership.

Index is a subset of the Russell 3000® Index and includes approximately 2,500 of the smallest securities based on a combination of their

Russell Investments cannot provide tax advice. Please consult a tax consultant for further questions and/or prior to investing.
Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates Management, L.P., with a significant minority stake held by funds managed by Reverence Capital Partners, L.P. Certain of Russell Investments' employees
and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes.
Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank
Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand.
Securities products and services offered through Russell Investments Financial Services, LLC member FINRA, part of Russell Investments.
Copyright © 2024 Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without
warranty.
Date of First Use: January 2011. Revised: August 2024.
RIFIS-26208 (Exp. 9/25)
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