Russell’s Core PhilosophyPersonalized – Researched – Proven

Date

Presenter NamePresenter Title

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Disclosure

Fund objectives, risks, charges and expenses should be carefully considered before investing. A prospectus containing this and other important information can be obtained by calling (800) 787-7354 or visiting www.Russell.com. Please read the prospectus carefully before investing.

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Disclosure

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.

Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.

Indexes are unmanaged and are provided for general comparison purposes only. They cannot be invested in directly.

Russell 1000® Index: Measures the performance of the 1,000 largest companies in the Russell 3000® Index, representative of the U.S. large capitalization securities market.

Russell 1000® Growth Index: Measures the performance of those Russell 1000® Index securities with higher price-to-book ratios and higher forecasted growth values, representative of U.S. securities exhibiting growth characteristics.

Russell 1000® Value Index: Measures the performance of those Russell 1000® Index securities with lower price-to-book ratios and lower forecasted growth values, representative of U.S. securities exhibiting value characteristics.

Copyright© Russell Investment Group 2006. All rights reserved.

Effective July 1, 2006 Frank Russell Investment Company changed its name to Russell Investment Company ("RIC"). RIC Funds are distributed by Russell Fund Distributors, Inc., and advised by Russell Investment Management Company ("RIMCo"). Effective July 1, 2006 RIMCo changed its name from Frank Russell Investment Management Company

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company

Securities distributed through Russell Fund Distributors, Inc. member NASD, part of Russell Investment Group.

First Used: June 2005 Last Updated: October 2006 RFD05-4776

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Disclosure

Small capitalization (small cap) investments involve stocks of companies with smaller levels of market capitalization (generally less than $2 billion) than larger company stocks (large cap). Small cap investments are subject to considerable price fluctuations and are more volatile than large company stocks. Investors should consider the additional risks involved in small cap investments

Non-US markets entail different risks than those typically associated with US markets, including currency fluctuations, political and economic instability, accounting changes, and foreign taxation. Securities may be less liquid and more volatile.

Specific sector investing such as real estate can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes and tax laws and interest rates all present potential risks to real estate investments.

Bond investors should carefully consider risks such as interest rate risk, credit risk, securities lending, repurchase and reverse repurchase transaction risk. Greater risk is inherent in portfolios that invest primarily in high yield bonds. They are subject to additional risks, such as limited liquidity and increased volatility.

Client List and Selection Criteria: US and non-US clients on this representative list were selected from Russell Investment Group’s complete client roster from those who have given permission to publish their names (as of 2/06). US publicly-held companies listed are Russell clients that appear on the 2006 Fortune 100 list. The non-public company client and endowment/foundation client are each those with the highest total assets. Non-US clients listed represent those with the highest total assets in each of the following regions: Austral-Asia; Japan; Europe and Canada. Performance-based data was not used in selecting listed clients.

The identification of the clients listed does not constitute an endorsement or recommendation of Russell's products or services by such client.

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Global Alliances to: Improve Financial Security for People

Russell delivers its investment programs by joining forces with some of the leading financial services organizations throughout the world. These alliances allow Russell to provide investment expertise within a program tailored for investors in each region.

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Tacoma1936

Toronto1984

New York1969

London1979

Paris1994

Singapore1999

Tokyo1986

Auckland1991

Sydney1986

Advisor to major institutions around the world

Leading global provider of multi-manager portfolios*

2,000 associates worldwide

A Pioneer of Multi-Manager Investing

*Russell Investment Group holds the largest market share of the global manager of managers market which includes “collective investment funds or institutional separate accounts with assets managed as segregated accounts by multiple underlying managers.” The Cerulli Report™, Cerulli Quantitative Update: Global Multimanager Products 2005.

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Build Investment Strategies

Implement Disciplined Approach

Help Meet Financial Goals and Obligations

Advising Clients on more than US $2.4 Trillion* in assets worldwide

Representative Client List

Alcoa

AT&T Inc.

BASF

BHP Billiton

Bill and Melinda Gates Foundation

Boeing

Caterpillar

Coca-Cola

General Motors

IBM

Molson, Inc.

State Teachers Retirement

System of Ohio

Toyota Motor Pension Fund

UnitedHealth Group

*Global assets under advisement as of 9/30/05.

Representative client list as of 2/2006. Clients may contract for a variety of services from Russell Investment Group. For more information on the selection criteria, please refer to the disclosure slide.

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Russell’s Global Team of Investment Experts

101

Manager Selection

127Asset Allocation &Capital Markets Research

77

Review & Control

94Trading &Implementation

95

Portfolio Strategy Russell Investment Process

Current as of 12/31/05

Russell Puts More Than 490

Investment Professionals From Around the World to Work for You

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Russell’s Manager Selection Process

Qualitative Personnel / administration

Investment philosophy

Decision making procedures

Economic and securities research

Quantitative Performance against peer groups

Performance against benchmarks

Transactions

Portfolio characteristics

PEOPLE PROCESS

PORTFOLIOPERFORMANCE

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Russell’s Research-Based Investment Process

8,600

4,500

680

180 Manager Products Used in Russell Funds

Managers With A Primary ‘Hire’ Rating

Manager Products Continually Monitored and Researched

Total Manager Products Monitored By Russell

Data as of 12/31/05

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Why picking today’s hot manager isn’t the solution.

Source: Russell Investment Group Equity Accounts Universe of 123 major banks, insurance companies and investment advisors with six years of return history ending December, 2005.

Few Managers Stay in the Top Quartile ConsecutivelySix Years 2000-2005

Of the top 31 performing managers in 2000*, only two of them stayed on top over time.

2000 2001 2002 2003 2004 2005

31

22

16

74

2

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Inside Morningstar’s Style Boxes:What are the Performance Realities?

Morningstar Style BoxesAll Categories

Large Cap

Small Cap

Value Growth

Large Value Large Growth Small Value Small Growth

RANDOMLY SELECTED MORNINGSTARCATEGORIES

Source: Morningstar PrincipiaThe Morningstar Style Box™ reveals a fund’s investment strategy. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth).

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2005 Performance Ranges for Money Managers within each Selected Morningstar Style Box

46.1%

-11.94%

53.96%

-9.4%

19.49%

-8.09%

22.55%

-68.18%

63.36% 27.58% 90.73%PERFORMANCE SPREAD

0% return

Large Value Large Growth Small Value Small Growth

MORNINGSTARCATEGORY

58.04%

Source: Morningstar Principia. Data as of 12/31/2005. Performance quoted represents past performance and does not guarantee future results.

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RIC Equity I / Diversified Equity Funds

Value Growth

Large

Medium

Siz

e

Market-Oriented

Style

Suffolk

Russell 1000®

Equity I / Diversified Equity Fund

Turner

Ark

MFSMarsico

Montag

Alliance - Bernstein

Russell1000® Value

Russell 1000® Growth

ICAP

Schneider

Money managers listed are current as of 07/26/2006. Subject to the Fund's Board approval, Russell 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. If applicable, please refer to the most recent prospectus which will contain the latest information. The investment strategies are the goals of the individual money managers; there is no assurance that the exact objective will always be met.

Select Holdings

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Russell’s goal is to deliver above-average returns and above-average consistency with lower volatility.

The Goal of Our Investment Process

The Heart of Russell’s difference: institutional-quality money managers that are often not available to retail mutual fund investors.UP TO 6 ASSET CLASSES

12 POTENTIAL INVESTMENT STYLES

UP TO 48 INDEPENDENT MONEY MANAGERS

*Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.

Auckland Chicago London Melbourne New York San Francisco Sydney Tacoma Tokyo Toronto

www.Russell.com