2018 SEMI ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS 30 September 2018 Russell Investment Company plc an umbrella fund with segregated liability between sub-funds Russell Investments Continental European Equity Fund Russell Investments Emerging Markets Equity Fund Russell Investments Global Bond Fund Russell Investments Global Credit Fund Russell Investments Global High Yield Fund Russell Investments Japan Equity Fund Russell Investments Multi-Asset Growth Strategy Euro Fund Russell Investments Asia Pacific Ex Japan Fund Russell Investments Sterling Bond Fund Russell Investments U.K. Equity Fund Russell Investments U.K. Index Linked Fund Russell Investments U.K. Long Dated Gilt Fund Russell Investments U.S. Bond Fund Russell Investments U.S. Equity Fund Russell Investments U.S. Small Cap Equity Fund Russell Investments World Equity Fund II Russell Investments Unconstrained Bond Fund Russell Investments Multi-Asset Conservative Strategy Fund Russell Investments Emerging Market Debt Fund Old Mutual African Frontiers Fund Old Mutual Value Global Equity Fund Copper Rock Global All Cap Equity Fund Old Mutual Global REIT Fund Old Mutual Global Aggregate Bond Fund Old Mutual Global Currency Fund Old Mutual MSCI Africa ex-South Africa Index Fund Old Mutual FTSE RAFI ® All World Index Fund * The Fund launched on 13 April 2018 Old Mutual MSCI World ESG Index Fund Old Mutual Global Balanced Fund Old Mutual Emerging Market Local Currency Debt Fund Old Mutual Global Defensive Fund Old Mutual Multi-Style Global Equity Fund Old Mutual Opportunities Global Equity Fund Old Mutual Emulated Opportunities Global Equity Fund Old Mutual MSCI Emerging Markets ESG Index Fund Old Mutual Blended Global Equity Fund Old Mutual Global Macro Equity Fund Old Mutual Global Islamic Equity Fund Old Mutual Global Managed Volatility Fund Old Mutual Quality Global Equity Fund Old Mutual Growth Global Equity Fund Old Mutual Global Emerging Opportunities Fund Old Mutual Titan Global Equity Fund Old Mutual Global Managed Alpha Fund Acadian European Equity UCITS Acadian Global Equity UCITS Acadian Emerging Markets Equity UCITS Acadian Global Managed Volatility Equity UCITS Acadian Sustainable Global Equity UCITS Acadian Emerging Markets Managed Volatility Equity UCITS Acadian Emerging Markets Equity UCITS II Acadian Global Leveraged Market Neutral Equity UCITS Acadian Diversified Alpha UCITS Acadian Sustainable Emerging Markets Equity Ex-Fossil Fuel UCITS Acadian Multi-Asset Absolute Return UCITS Acadian Japan Equity UCITS*
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2018 SEMI ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
30 September 2018
Russell Investment Company plcan umbrella fund with segregated liability between sub-funds
Russell Investments Continental European Equity FundRussell Investments Emerging Markets Equity FundRussell Investments Global Bond FundRussell Investments Global Credit FundRussell Investments Global High Yield FundRussell Investments Japan Equity FundRussell Investments Multi-Asset Growth Strategy Euro FundRussell Investments Asia Pacifi c Ex Japan FundRussell Investments Sterling Bond FundRussell Investments U.K. Equity FundRussell Investments U.K. Index Linked FundRussell Investments U.K. Long Dated Gilt FundRussell Investments U.S. Bond FundRussell Investments U.S. Equity FundRussell Investments U.S. Small Cap Equity FundRussell Investments World Equity Fund IIRussell Investments Unconstrained Bond FundRussell Investments Multi-Asset Conservative Strategy FundRussell Investments Emerging Market Debt FundOld Mutual African Frontiers FundOld Mutual Value Global Equity FundCopper Rock Global All Cap Equity FundOld Mutual Global REIT FundOld Mutual Global Aggregate Bond FundOld Mutual Global Currency FundOld Mutual MSCI Africa ex-South Africa Index FundOld Mutual FTSE RAFI® All World Index Fund
* The Fund launched on 13 April 2018
Old Mutual MSCI World ESG Index FundOld Mutual Global Balanced FundOld Mutual Emerging Market Local Currency Debt FundOld Mutual Global Defensive FundOld Mutual Multi-Style Global Equity FundOld Mutual Opportunities Global Equity FundOld Mutual Emulated Opportunities Global Equity FundOld Mutual MSCI Emerging Markets ESG Index FundOld Mutual Blended Global Equity FundOld Mutual Global Macro Equity FundOld Mutual Global Islamic Equity FundOld Mutual Global Managed Volatility FundOld Mutual Quality Global Equity FundOld Mutual Growth Global Equity FundOld Mutual Global Emerging Opportunities FundOld Mutual Titan Global Equity FundOld Mutual Global Managed Alpha FundAcadian European Equity UCITSAcadian Global Equity UCITSAcadian Emerging Markets Equity UCITSAcadian Global Managed Volatility Equity UCITSAcadian Sustainable Global Equity UCITSAcadian Emerging Markets Managed Volatility Equity UCITSAcadian Emerging Markets Equity UCITS IIAcadian Global Leveraged Market Neutral Equity UCITSAcadian Diversifi ed Alpha UCITSAcadian Sustainable Emerging Markets Equity Ex-Fossil Fuel UCITSAcadian Multi-Asset Absolute Return UCITSAcadian Japan Equity UCITS*
Russell Investment Company plc Contents
Contents
Administration of the Company ........................................................................................................................... 4
Background to the Company ............................................................................................................................... 10
Russell Investments Continental European Equity Fund .................................................................................... 15
Russell Investments Emerging Markets Equity Fund .......................................................................................... 27
Russell Investments Global Bond Fund .............................................................................................................. 47
Russell Investments Global Credit Fund ............................................................................................................. 101
Russell Investments Global High Yield Fund ...................................................................................................... 153
Russell Investments Japan Equity Fund ............................................................................................................. 182
Russell Investments Multi-Asset Growth Strategy Euro Fund ............................................................................ 193
Russell Investments Asia Pacific Ex Japan Fund ............................................................................................... 212
Russell Investments Sterling Bond Fund ............................................................................................................ 228
Russell Investments U.K. Equity Fund ................................................................................................................ 239
Russell Investments U.K. Index Linked Fund* .................................................................................................... 249
Russell Investments U.K. Long Dated Gilt Fund* ............................................................................................... 252
Russell Investments U.S. Bond Fund .................................................................................................................. 255
Russell Investments U.S. Equity Fund ................................................................................................................ 271
Russell Investments U.S. Small Cap Equity Fund .............................................................................................. 283
Russell Investments World Equity Fund II ........................................................................................................... 298
Russell Investments Unconstrained Bond Fund ................................................................................................. 323
Russell Investments Multi-Asset Conservative Strategy Fund ............................................................................ 362
Russell Investments Emerging Market Debt Fund .............................................................................................. 369
Old Mutual African Frontiers Fund ...................................................................................................................... 380
Old Mutual Value Global Equity Fund ................................................................................................................. 388
Copper Rock Global All Cap Equity Fund* .......................................................................................................... 394
Russell Investment Company plc Contents - continued
Contents
Old Mutual Global REIT Fund ............................................................................................................................. 397
Old Mutual Global Aggregate Bond Fund ........................................................................................................... 404
Old Mutual Global Currency Fund ....................................................................................................................... 416
Old Mutual MSCI Africa ex-South Africa Index Fund* ......................................................................................... 423
Old Mutual FTSE RAFI® All World Index Fund ................................................................................................... 426
Old Mutual MSCI World ESG Index Fund ........................................................................................................... 455
Old Mutual Global Balanced Fund** .................................................................................................................... 474
Old Mutual Emerging Market Local Currency Debt Fund* .................................................................................. 480
Old Mutual Global Defensive Fund** ................................................................................................................... 484
Old Mutual Multi-Style Global Equity Fund .......................................................................................................... 489
Old Mutual Opportunities Global Equity Fund* .................................................................................................... 518
Old Mutual Emulated Opportunities Global Equity Fund* ................................................................................... 521
Old Mutual MSCI Emerging Markets ESG Index Fund ....................................................................................... 524
Old Mutual Blended Global Equity Fund* ............................................................................................................ 537
Old Mutual Global Macro Equity Fund ................................................................................................................ 540
Old Mutual Global Islamic Equity Fund ............................................................................................................... 572
Old Mutual Global Managed Volatility Fund*** .................................................................................................... 578
Old Mutual Quality Global Equity Fund**** .......................................................................................................... 585
Old Mutual Growth Global Equity Fund***** ........................................................................................................ 591
Old Mutual Global Emerging Opportunities Fund****** ....................................................................................... 599
Old Mutual Titan Global Equity Fund******* ......................................................................................................... 606
Old Mutual Global Managed Alpha Fund******** ................................................................................................. 613
Acadian European Equity UCITS ........................................................................................................................ 621
Acadian Global Equity UCITS ............................................................................................................................. 633
Acadian Japan Equity UCITS********** ................................................................................................................ 766
Notes to the Financial Statements ...................................................................................................................... 773
Appendix I - Securities Finance Transactions ..................................................................................................... 836 * Ceased trading during the financial year ended 31 March 2018. ** The Fund launched on 23 August 2017. *** The Fund launched on 14 June 2017. **** The Fund launched on 7 July 2017. ***** The Fund launched on 18 July 2017. ****** The Fund launched on 16 August 2017. ******* The Fund launched on 30 June 2017. ******** The Fund launched on 28 November 2017. ********* The Fund launched on 12 February 2018. ********** The Fund launched on 13 April 2018.
Russell Investment Company plc Administration of the Company
4 Administration of the Company
Board of Directors of the Company* Global Sub-Custodian Mr. James Firn (Chairman) State Street Bank and Trust Company Mr. James Beveridge Copley Place Mr. Peter Gonella 100 Huntington Avenue Mr. Neil Jenkins Boston, MA 02116 Mr. John McMurray United States of America Mr. Tom Murray Mr. William Roberts Company Secretary Mr. David Shubotham MFD Secretaries Limited Mr. Kenneth Willman 32 Molesworth Street Dublin 2 Members of the Manager’s Audit Committee Ireland Mr. David Shubotham (Chairman) Mr. Tom Murray Adviser and Promoter** Mr. William Roberts Russell Investments Limited Rex House Registered Office 10 Regent Street, St James’s 78 Sir John Rogerson’s Quay London, SW1Y 4PE Dublin 2 England Ireland Money Managers for Russell Investments Continental Manager European Equity Fund Russell Investments Ireland Limited Invesco Asset Management Limited 78 Sir John Rogerson’s Quay 30 Finsbury Square Dublin 2 London EC2A 1AG Ireland England Independent Auditors Liontrust Investment Services Limited PricewaterhouseCoopers 2 Savoy Court Chartered Accountants and Statutory Audit Firm London WC2R 0EZ One Spencer Dock England North Wall Quay Dublin 1 Metropole Gestion Ireland 9, rue des Filles, Saint-Thomas 75002 Paris Legal Advisers France Maples and Calder 75 St. Stephen’s Green Numeric Investors, LLC Dublin 2 470 Atlantic Avenue 6th floor Ireland Boston, MA 02210 United States of America Administrator State Street Fund Services (Ireland) Limited Russell Investments Limited 78 Sir John Rogerson’s Quay Rex House Dublin 2 10 Regent Street, St James’s Ireland London, SW1Y 4PE England Depositary State Street Custodial Services (Ireland) Limited 78 Sir John Rogerson’s Quay Dublin 2 Ireland * As of 30 September 2018. ** Also acts as Distributor and U.K. Facilities Agent for all Funds with prefix Russell Investments (the "Russell Investments Funds") and all
Funds with prefix Acadian (the "Acadian Funds") and Investment Manager for the Russell Investments Asia Pacific Ex Japan Fund, Russell Investments Continental European Equity Fund, Russell Investments Global Bond Fund, Russell Investments Global Credit Fund, Russell Investments Global High Yield Fund, Russell Investments Multi-Asset Conservative Strategy Fund, Russell Investments Multi-Asset Growth Strategy Euro Fund, Russell Investments Unconstrained Bond Fund, Russell Investments Sterling Bond Fund, Russell Investments U.K. Equity Fund, Russell Investments U.S. Bond Fund, Russell Investments World Equity Fund II and Old Mutual Global Macro Equity Fund.
All Funds with the prefix “Old Mutual” and the Copper Rock Global All Cap Equity Fund are referred to collectively as the Old Mutual Funds.
Russell Investment Company plc Administration of the Company - continued
Administration of the Company 5
Money Managers for Russell Investments Emerging Insight Investment Management Markets Equity Fund 160 Queen Victoria Street Alliance Bernstein Institutional Investment Management London, EC4V 4LA 50 Berkley Street England London W1J 8HA England Pacific Investment Management Company, LLC (PIMCO) 650 Newport Centre Drive Genesis Asset Managers, LLP Newport Beach, CA 92660 21-24 Grosvenor Place United States of America Belgrovia, London SW1X 7HU Russell Investments Limited England Rex House 10 Regent Street, St James’s Harding Loevner Management, L.P. London, SW1Y 4PE 400 Crossing Blvd England 4th Floor Bridgewater, NJ 08807 Russell Investment Management, LLC United States of America 1301 Second Avenue, 18th Floor Seattle, WA 98101 Numeric Investors, L.P. United States of America 470 Atlantic Avenue 6th floor Boston, MA 02210 Schroder Investment Management Inc. United States of America 7 Bryant Park New York, NY 10018-3706 Oaktree Capital Management, L.P. United States of America 333 South Grand Ave., 28th Floor Los Angeles, CA 90071 Money Managers for Russell Investments Global Credit United States of America Fund Bluebay Asset Management Russell Investment Management, LLC 77 Grosvenor Street 1301 Second Avenue, 18th Floor London, W1K 3JR Seattle, WA 98101 England United States of America Columbia Asset Management LLC Somerset Capital Management, LLP 213 W. Liberty St., Suite 110 22 Carlisle Place Ann Arbor, MI 48104 SW1P 1JA United States of America England Kempen Capital Management Westwood Management Corp. Beethovenstraat 300 200 Crescent Court, Suite 1200 1077 WZ Amsterdam Dallas, TX 75201 P.O. Box 75666 United States of America 1070 AR Amsterdam Netherlands Money Managers for Russell Investments Global Bond Fund Pacific Investment Management Company, LLC (PIMCO) BlueBay Asset Management Limited 650 Newport Center Drive 77 Grosvenor Street Newport Beach, CA 92660 London W1K 3JR United States of America England Russell Investments Limited Colchester Global Investors Limited Rex House Heathcoat House 10 Regent Street, St James’s 20 Savile Row London, SW1Y 4PE London W1S 3PR England England T. Rowe Price 100 East Pratt Street Baltimore, Maryland 21202 United States of America
Russell Investment Company plc Administration of the Company - continued
6 Administration of the Company
Money Managers for Russell Investments Global High Sompo Japan NipponKoa Asset Management Co Ltd. Yield Fund Otemachi Financial Center Barings LLC 5-4, Otemachi 1-Chome 300 South Tryon Street Chiyoda-Ku Suite 2500 Tokyo, 100-0004 Charlotte, NC 28202 Japan United States of America Money Managers for Russell Investments Multi-Asset DDJ Capital Management, LLC Growth Strategy Euro Fund, Russell Investments U.K. 130 Turner Street Equity Fund and Russell Investments Multi-Asset Building 3, Suite 600 Conservative Strategy Fund Waltham, MA 02453 Russell Investments Limited United States of America Rex House 10 Regent Street, St James’s Hermes Investment Management London, SW1Y 4PE Lloyds Chambers England 1 Portsoken Street London, E1 8HZ Money Managers for Russell Investments Asia Pacific Ex England Japan Fund BlackRock International Limited Pacific Investment Management Company, LLC (PIMCO) 1 Semple Street 650 Newport Center Drive Exchange Place One Newport Beach, CA 92660 Edinburgh, EH3 8BL United States of America United Kingdom Russell Investments Limited Numeric Investors, LLC Rex House 470 Atlantic Avenue 6th Floor 10 Regent Street, St James’s Boston, MA 02210 London, SW1Y 4PE United States of America England Russell Investments Limited Russell Investment Management, LLC Rex House 1301 Second Avenue, 18th Floor 10 Regent Street, St James’s Seattle, WA 98101 London, SW1Y 4PE United States of America England Money Managers for Russell Investments Japan Equity Russell Investment Management, LLC Fund 1301 Second Avenue, 18th Floor Asset Management One Co. Ltd Seattle, WA 98101 Tekko Building United States of America 1-8-2 Marunouchi Chiyoda-Ku, 100-0005 Money Managers for Russell Investments Sterling Bond Japan Fund FIL Investments International Coupland Cardiff Asset Management, LLP Beech Gate 31-32 St. James’s Street Millfield Lane London SW1A 1HD Lower Kingswood England Tadworth, KT20 6RP United Kingdom Numeric Investors LLC 470 Atlantic Avenue 6th Floor Russell Investments Limited Boston, MA 02210 Rex House United States of America 10 Regent Street, St James’s London, SW1Y 4PE Russell Investment Management, LLC England 1301 Second Avenue, 18th Floor Seattle, WA 98101 Russell Investment Management, LLC United States of America 1301 Second Avenue, 18th Floor Seattle, WA 98101 United States of America
Russell Investment Company plc Administration of the Company - continued
Administration of the Company 7
Money Managers for Russell Investments U.S. Bond Fund Janus Henderson Group Plc Logan Circle Partners, L.P. 151 Detroit Street 1717 Arch Street, Suite 1500 Denver, CO 80206 Philadelphia, PA 19103 United States of America United States of America Numeric Investors, LLC Reams Asset Management Company 470 Atlantic Avenue 6th Floor 227 Washington Street Boston, MA 02210 Columbus, IN 47201 United States of America United States of America Russell Investments Limited Russell Investments Limited Rex House Rex House 10 Regent Street, St James’s 10 Regent Street, St James’s London, SW1Y 4PE London, SW1Y 4PE England England Russell Investment Management, LLC Russell Investment Management LLC 1301 Second Avenue, 18th Floor 1301 Second Avenue, 18th Floor Seattle, WA 98101 Seattle, WA 98101 United States of America United States of America Sanders Capital, LLC Money Managers for Russell Investments U.S. Equity Fund 390 Park Avenue, Suite 17 HS Management Partners, LLC New York, NY 10022 598 Madison Avenue, 14th Floor United States of America New York, NY 10022 United States of America Wellington Management Company, LLP 280 Congress Street Jacobs Levy Equity Management Boston, MA 02210 100 Campus Drive United States of America P.O. Box 650 Florham Park, NJ 07932-0650 Money Managers for Russell Investments Unconstrained United States of America Bond Fund H2O Asset Management, LLP Russell Investment Management, LLC 10 Old Burlington Street 1301 Second Avenue, 18th Floor London W1S 3AG Seattle, WA 98101 England United States of America Hermes Investment Management Suffolk Capital Management, LLC Lloyds Chambers 810 Seventh Avenue 1 Portsoken Street Suite 3600 London, E1 8HZ New York, NY 10019 England United States of America Post Advisory Group, LLC Money Manager for Russell Investments U.S. Small Cap 1620 26th Street Equity Fund Suite 6500 Russell Investment Management, LLC Santa Monica, CA 90404 1301 Second Avenue, 18th Floor United States of America Seattle, WA 98101 United States of America Putnam Investments Limited 57-59 St James's Street Money Managers for Russell Investments World Equity London, SW1A 1LD Fund II United Kingdom Fiera Capital Corp 1501 McGill College Avenue Russell Investments Limited Suite 800 Rex House Montréal, QC H3A 3M8 10 Regent Street, St James’s Canada London, SW1Y 4PE England
Russell Investment Company plc Administration of the Company - continued
8 Administration of the Company
Russell Investment Management, LLC Money Manager for Old Mutual Global REIT Fund 1301 Second Avenue, 18th Floor Heitman, LLC Seattle, WA 98101 191 N. Wacker Drive United States Suite 2500 Chicago, IL 60606 Money Managers for Russell Investments Emerging United States of America Market Debt Fund DuPont Capital Management Money Manager for Old Mutual Global Aggregate Bond One Righter Parkway, Suite 3200 Fund and Old Mutual Global Currency Fund Wilmington, DE 19803 Rogge Global Partners Plc United States of America Sion Hall, 56 Victoria Embankment London EC4Y 0DZ Edmond De Rothschild Asset Management England 47 rue du Faubourg Saint Honoré 75401 Paris Cedex 08 Money Managers for Old Mutual Multi-Style Global France Equity Fund Acadian Asset Management, LLC Russell Investment Management, LLC 260 Franklin Street 1301 Second Avenue, 18th Floor Boston, MA 02110 Seattle, WA 98101 United States of America United States of America Baillie Gifford Money Manager for Old Mutual African Frontiers Fund, Calton Square Old Mutual FTSE RAFI® All World Index Fund, 1 Greenside Row Old Mutual MSCI World ESG Index Fund, Old Mutual Edinburgh, EH1 3AN Global Balanced Fund, Old Mutual Global Defensive Fund, Scotland Old Mutual MSCI Emerging Markets ESG Index Fund, Old Mutual Global Islamic Equity Fund, Old Mutual Global Barrow, Hanley, Mewhinney & Strauss Inc. Managed Volatility Fund, Old Mutual Global Emerging JP Morgan Chase Tower Opportunities Fund, Old Mutual Titan Global Equity Fund, 2200 Ross Avenue, 31th Floor Old Mutual Global Managed Alpha Fund and Distributor Dallas, TX 75201 for all Old Mutual Funds United States of America Old Mutual Investment Group (Pty) Limited Mutual Park Fiera Capital Corp Jan Smuts Drive 1501 McGill College Avenue Pinelands 7405 Suite 800 South Africa Montréal, QC H3A 3M8 Canada Money Manager for Old Mutual Quality Global Equity Fund Old Mutual Investment Group (Pty) Limited Fiera Capital Corp Mutualpark 1501 McGill College Avenue Jan Smuts Drive Suite 800 Pinelands Montréal, QC H3A 3M8 Cape Town, 7405 Canada South Africa Money Manager for Old Mutual Growth Global Equity Money Manager for Old Mutual Global Macro Equity Fund Fund Baillie Gifford Old Mutual Investment Group (Pty) Limited Calton Square Mutual Park 1 Greenside Row Jan Smuts Drive Edinburgh, EH1 3AN Pinelands 7405 Scotland South Africa Money Manager for Old Mutual Value Global Russell Investments Limited Equity Fund Rex House Barrow, Hanley, Mewhinney & Strauss, LLC. 10 Regent Street, St James’s JP Morgan Chase Tower London, SW1Y 4PE 2200 Ross Avenue, 31st Floor England Dallas, TX 75201 United States of America
Russell Investment Company plc Administration of the Company - continued
Administration of the Company 9
Money Manager for all the Acadian Funds Paying Agent in Italy Acadian Asset Management, LLC SGSS S.p.A. 260 Franklin Street Via Benigno Crespi, 19/A - MAC 2 Boston, MA 02110 20159 Milan United States of America Italy Paying and Information Agent in Austria Information Agent and Representative in The Netherlands UniCredit Bank Austria AG Deutsche Bank AG Schottengasse 6-8 Amsterdam branch 1010 Vienna Herengracht 450 - 454 Austria 1017 CA Amsterdam The Netherlands Information Agent in Germany* Russell Investments Limited Paying Agent in Switzerland** Zweigniederlassung Frankfurt am Main Banque Cantonale de Genève OpernTurm 17, quai de l’Ile Bockenheimer Landstraße 2-4 1204 Geneva 60306 Frankfurt am Main Switzerland Germany Representative in Switzerland** Representative in Italy Carnegie Fund Services S.A. BNP Paribas Securities, Milan branch 11, rue du Général-Dufour Via Ansperto 5 1204 Geneva 20123 Milan Switzerland Italy * The Company’s Memorandum and Articles of Association, the Prospectus, the Key Investor Information Documents, the unaudited semi-
annual reports, as well as the audited annual reports can be obtained free of charge from the office of the information agent via regular mail or per e-mail. The net asset value of each of the relevant Funds and the subscription and redemption prices of the shares of the Funds are published jointly and daily on “www.fundinfo.com” for information purposes only and do not constitute an invitation to subscribe for or repurchase the Company’s shares at those prices.
** ADDITIONAL INFORMATION FOR QUALIFIED INVESTORS IN SWITZERLAND
Only the Acadian European Equity UCITS, Acadian Global Equity UCITS, Acadian Emerging Markets Equity UCITS, Acadian Global Managed Volatility Equity UCITS, Acadian Sustainable Global Equity UCITS, Acadian Emerging Markets Managed Volatility Equity UCITS, Acadian Emerging Markets Equity UCITS II, Acadian Global Leveraged Market Neutral Equity UCITS, Acadian Diversified Alpha UCITS, Acadian Sustainable Emerging Markets Equity Ex-Fossil Fuel UCITS and Acadian Multi-Asset Absolute Return UCITS of The Russell Investment Company Plc (the "Funds") are compliant with Swiss law for distribution to qualified investors in Switzerland.
The Company and the Funds mentioned above are compliant with Swiss law for distribution to qualified investors in Switzerland. The Swiss representative is Carnegie Fund Services S.A., 11, rue du Général-Dufour, 1204 Geneva, Switzerland. The Swiss paying agent is Banque Cantonale de Genève, 17, quai de l’Ile, 1204 Geneva, Switzerland. Investors in Switzerland can obtain the documents of the Company, such as the Prospectus, the Articles of Association, the Key Investor Information Documents (KIIDs), and the financial reports free of charge from the Swiss representative. This document may only be issued, circulated or distributed so as not to constitute an offering to the general public in Switzerland. Recipients of the document in Switzerland should not pass it on to anyone without first consulting their legal or other appropriate professional adviser, or the Swiss representative.
Each time performance data is published, it should be noted that the past performance is no indication of current or future performance, and that it does not take account of the commissions and costs incurred on the issue and redemption of shares.
The list of the purchases and sales and further information can be obtained free of charge from the representative in Switzerland. For the shares of the Fund distributed to non-qualified investors in and from Switzerland and for the shares of the Fund distributed to qualified investors in Switzerland, the place of jurisdiction is Geneva.
Russell Investment Company plc Background to the Company
10 Background to the Company
Russell Investment Company plc (the “Company”), was incorporated in Ireland as a public limited company on 31 March 1994. The Company operates under the Companies Act, 2014 (the "Companies Act") and has been authorised since 11 April 1994 by the Central Bank of Ireland (the “Central Bank”) under registration number 215496. The Company is an open-ended investment company with variable capital and is authorised by the Central Bank under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) (the “UCITS Regulations”) and under the Central Bank (Supervision & Enforcement) Act 2013 (Section 48(1) (Undertakings for Collective Investment in Transferable Securities)) Regulations 2015, as amended (the “Central Bank UCITS Regulations”). The Company is organised in the form of an umbrella fund with segregated liability between sub-funds and as at 30 September 2018 had fifty constituent sub-funds available for investment (each a “Fund”, collectively the “Funds”). Russell Investments Eurozone Aggressive Equity Fund and Russell Investments Global Real Estate Securities Fund remained unfunded as at 31 March 2018. The Adviser, the Manager and their affiliated group companies are referred to collectively as “Russell Investments” in these financial statements. The net assets under management for the Company at 30 September 2018 amounted to USD 22,344,108,647 (as at 31 March 2018: USD 23,662,881,582, as at 30 September 2017 amounted to USD 22,309,528,073) and are broken down as follows:
Fund Funded during the year ended
Functional Currency
Net Assets 30 September 2018
‘000
Net Assets 31 March 2018
‘000
Net Assets 30 September 2017
‘000 Russell Investments Continental European Equity Fund 31 March 1998 EUR 553,090 524,693 551,348 Russell Investments Emerging Markets Equity Fund 31 March 1995 USD 2,927,184 3,349,195 3,276,901 Russell Investments Global Bond Fund 31 March 1995 USD 1,682,856 1,872,688 1,917,073 Russell Investments Global Credit Fund 24 March 2010 USD 3,431,600 3,957,487 3,654,698 Russell Investments Global High Yield Fund 31 March 2012 EUR 512,007 586,866 680,104 Russell Investments Japan Equity Fund 31 March 1996 JPY 64,696,087 53,514,822 60,790,424 Russell Investments Multi-Asset Growth Strategy Euro Fund 31 March 2013 EUR 408,019 371,130 403,012 Russell Investments Asia Pacific Ex Japan Fund 31 March 1996 USD 101,054 125,035 132,264 Russell Investments Sterling Bond Fund 31 March 1999 GBP 118,752 114,864 101,118 Russell Investments U.K. Equity Fund 31 March 1998 GBP 140,334 122,449 131,035 Russell Investments U.K. Index Linked Fund† 31 March 1999 GBP - - 14,745 Russell Investments U.K. Long Dated Gilt Fund†† 31 March 2004 GBP - - 12,214 Russell Investments U.S. Bond Fund 31 March 2002 USD 93,709 102,258 106,115 Russell Investments U.S. Equity Fund 31 March 1998 USD 783,533 766,116 747,748 Russell Investments U.S. Small Cap Equity Fund 31 March 1998 USD 118,486 118,860 117,639 Russell Investments World Equity Fund II 31 March 2007 USD 895,164 935,603 845,259 Russell Investments Unconstrained Bond Fund 31 March 2014 USD 632,834 572,363 489,791 Russell Investments Multi-Asset Conservative Strategy Fund 31 March 2015 EUR 6,859 7,490 8,025 Russell Investments Emerging Market Debt Fund 31 March 2016 USD 53,278 63,740 82,273 Old Mutual African Frontiers Fund 31 March 2011 USD 263,351 276,411 201,569 Old Mutual Value Global Equity Fund 31 March 2003 USD 264,778 261,468 362,327 Old Mutual Global REIT Fund 31 March 2011 USD 73,963 78,528 101,422 Old Mutual Global Aggregate Bond Fund 31 March 2003 USD 141,984 142,831 132,643 Old Mutual Global Currency Fund 31 March 2005 USD 141,149 195,524 140,239 Old Mutual MSCI Africa ex-South Africa Index Fund††† 31 March 2012 USD - - 6,868 Old Mutual FTSE RAFI® All World Index Fund 31 March 2012 USD 483,347 558,276 503,510 Old Mutual MSCI World ESG Index Fund 31 March 2014 USD 428,983 412,072 391,047 Old Mutual Global Balanced Fund 31 March 2018 USD 132,850 136,062 138,511 Old Mutual Emerging Market Local Currency Debt Fund† 31 March 2013 USD - - 103,816 Old Mutual Global Defensive Fund* 31 March 2018 USD 10,365 10,413 10,159 Old Mutual Multi-Style Global Equity Fund 31 March 2013 USD 559,150 578,845 619,849
Russell Investment Company plc Background to the Company - continued
Background to the Company 11
Fund Funded during the year ended
Functional Currency
Net Assets 30 September 2018
‘000
Net Assets 31 March 2018
‘000
Net Assets 30 September 2017
‘000 Old Mutual MSCI Emerging Markets ESG Index Fund 31 March 2015 USD 42,871 63,789 50,313 Old Mutual Global Macro Equity Fund 31 March 2017 USD 524,634 508,628 510,098 Old Mutual Global Islamic Equity Fund 31 March 2017 USD 90,901 77,378 67,468 Old Mutual Global Managed Volatility Fund 31 March 2018 USD 38,369 36,663 35,777 Old Mutual Quality Global Equity Fund 31 March 2018 USD 138,600 138,039 124,962 Old Mutual Growth Global Equity Fund 31 March 2018 USD 90,575 93,363 80,668 Old Mutual Global Emerging Opportunities Fund 31 March 2018 USD 85,010 102,721 46,917 Old Mutual Titan Global Equity Fund 31 March 2018 USD 104,053 106,250 103,481 Old Mutual Global Managed Alpha Fund* 31 March 2018 USD 53,520 51,214 - Acadian European Equity UCITS 24 March 2010 EUR 666,136 262,795 120,375 Acadian Global Equity UCITS 31 March 2012 EUR 318,725 285,450 285,235 Acadian Emerging Markets Equity UCITS 31 March 2006 GBP 208,048 222,777 209,239 Acadian Global Managed Volatility Equity UCITS 31 March 2012 EUR 1,117,430 1,048,837 1,015,580 Acadian Sustainable Global Equity UCITS 31 March 2013 EUR 301,031 343,701 342,240 Acadian Emerging Markets Managed Volatility Equity UCITS
31 March 2015 USD 321,037 323,496 329,905
Acadian Emerging Markets Equity UCITS II 31 March 2015 USD 1,981,680 2,276,840 1,762,213 Acadian Global Leveraged Market Neutral Equity UCITS 31 March 2015 USD 37,237 98,697 118,304 Acadian Diversified Alpha UCITS 31 March 2016 USD 110,891 118,486 68,906 Acadian Sustainable Emerging Markets Equity Ex-Fossil Fuel UCITS
31 March 2017 USD 108,462 124,893 107,490
Acadian Multi-Asset Absolute Return UCITS** 31 March 2018 USD 14,220 14,906 - Acadian Japan Equity UCITS*** 31 March 2019 JPY 5,621,808 - - * The Fund launched on 28 November 2017 † The Fund ceased trading on 24 October 2017 ** The Fund launched on 12 February 2018 †† The Fund ceased trading on 26 October 2017 *** The Fund launched on 13 April 2018. ††† The Fund ceased trading on 9 October 2017 All shares in Russell Investments U.K. Index Linked Fund, Russell Investments U.K. Long Dated Gilt Fund, Copper Rock Global All Cap Equity Fund, Old Mutual Blended Global Equity Fund, Old Mutual Emerging Market Local Currency Debt Fund, Old Mutual Emulated Opportunities Global Equity Fund, Old Mutual MSCI Africa ex-South Africa Index Fund, Old Mutual Opportunities Global Equity Fund and Acadian Emerging Markets Small-Cap UCITS have been redeemed and the Funds have been closed and are no longer available for investment. The Company intends to apply to the Central Bank to revoke the Fund's approval following final disbursement of assets in the Fund. All references to “net assets” throughout this document refer to net assets attributable to holders of redeemable participating shares unless otherwise stated. U.K. Reporting Fund Status The Company conducts its affairs so as to enable U.K. reporting fund status to be obtained under the United Kingdom Income and Corporation Taxes Act, 1988 for the purposes of U.K. taxation for each applicable Fund. Investment Objectives Except where noted below there were no changes in the Funds’ Investments Objectives during the six months to 30 September 2018. The investment objective of Acadian Japan Equity UCITS, which launched during the six month period, is to generate long-term capital appreciation. The Acadian Japan Equity UCITS will seek to achieve its objective by primarily investing in equity and equity related securities of Japanese issuers listed or traded on the Japanese equity market such equity and equity related securities shall include ordinary stock, preferred stock, depository receipts, rights issued by a Japanese issuer to allow holders to subscribe for additional securities issued by that company and warrants related to equities issued by such Japanese companies.
Russell Investment Company plc Combined Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 12 Combined Balance Sheet
Total 30 September 2018
(Unaudited) USD ‘000
Total 31 March 2018
(Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ....................................................... 22,187,645 23,569,842
Cash at bank .................................................................................................................. 328,259 253,119 Cash held with brokers and counterparties for open financial derivative instruments ... 137,384 168,645
Debtors:
Receivable for investments sold ................................................................................. 434,875 315,997 Receivable on fund shares issued ............................................................................... 53,099 25,525 Dividends receivable .................................................................................................. 28,757 44,402 Interest receivable ...................................................................................................... 57,201 63,411 Prepayments and other debtors .................................................................................. 1,199 1,491
23,228,419 24,442,432 Liabilities Financial liabilities at fair value through profit or loss .................................................. (101,688) (125,366)
Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments .... (50,887) (39,098) Bank overdraft ........................................................................................................... (34) (8,426) Payable for investments purchased ............................................................................ (679,310) (469,369) Payable on fund shares redeemed .............................................................................. (10,827) (96,539) Distributions payable on income and hybrid accumulation share classes .................. (10,636) (13,505) Capital gains tax payable ........................................................................................... (10,972) (6,612) Management fees payable .......................................................................................... (14,403) (15,807) Performance fees payable .......................................................................................... (57) (57) Depositary fees payable ............................................................................................. (1,301) (466) Sub-custodian fees payable ........................................................................................ (2,267) (1,354) Administration fees payable ....................................................................................... (1,077) (749) Audit fees payable ...................................................................................................... (420) (974) Income purification payable ....................................................................................... (170) (225) Other fees payable ...................................................................................................... (261) (1,003)
(884,310) (779,550) Net assets attributable to redeemable participating shareholders .......................... 22,344,109 23,662,882
Russell Investment Company plc Combined Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Combined Profit and Loss Account 13
Total Six months ended
30 September 2018 (Unaudited)
USD ‘000
Total Six months ended
30 September 2017 (Unaudited)
USD ‘000 Income
Dividends ................................................................................................................... 271,885 230,382 Interest income ........................................................................................................... 122,642 108,761 Securities lending income .......................................................................................... 165 207
394,692 339,350 Net gain (loss) on investment activities ......................................................................... (931,860) 1,537,676 Total investment income (expense) ............................................................................ (537,168) 1,877,026 Expenses
Management fees ....................................................................................................... (94,090) (89,486) Less: Management fees reimbursement ..................................................................... 1,768 2,291 Depositary fees ........................................................................................................... (2,162) (1,321) Sub-custodian fees ..................................................................................................... (3,560) (4,311) Administration and transfer agency fees .................................................................... (3,739) (3,276) Audit fees ................................................................................................................... (420) (477) Professional fees ........................................................................................................ (196) (504) Income purification .................................................................................................... (130) (95) Other fees ................................................................................................................... (1,137) (1,915)
Total operating expenses ............................................................................................. (103,666) (99,094) Net income (expense) ................................................................................................... (640,834) 1,777,932
Finance costs
Distributions ............................................................................................................... (165,780) (158,236) Profit (loss) for the financial period before taxation ................................................ (806,614) 1,619,696
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................... (848,930) 1,585,031 All amounts in respect of the six months ended 30 September 2018 arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Combined Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 14 Combined Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders
Total Six months ended
30 September 2018 (Unaudited)
USD ‘000
Total Six months ended
30 September 2017 (Unaudited)
USD ‘000 Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................... (848,930) 1,585,031 Share transactions
Reinvestment of deemed distributions on accumulation shares and hybrid accumulation shares ................................................................................................... 144,847 139,879 Net increase (decrease) in net assets resulting from redeemable participating share transactions ................................................................................................................ (292,166) 42,468
Total net increase (decrease) in net assets attributable to redeemable participating shareholders .......................................................................................... (996,249) 1,767,378 Foreign currency translation (Note 1) ............................................................................ (322,524) 388,977 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................... 23,662,882 20,153,173 End of financial period .............................................................................................. 22,344,109 22,309,528
Russell Investment Company plc Russell Investments Continental European Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Continental European Equity Fund 15
30 September 2018 (Unaudited) EUR ‘000
31 March 2018 (Audited) EUR ‘000
Assets Financial assets at fair value through profit or loss ....................................................... 549,431 519,029
Cash at bank (Note 2) .................................................................................................... 2,167 3,777 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) .......................................................................................................................... 869 2,170
Debtors:
Receivable for investments sold ................................................................................. 1,296 4,919 Receivable on fund shares issued ............................................................................... 100 55 Dividends receivable .................................................................................................. 1,479 1,560
555,342 531,510 Liabilities Financial liabilities at fair value through profit or loss .................................................. (56) (514)
Creditors – amounts falling due within one financial year:
Net assets attributable to redeemable participating shareholders .......................... 553,090 524,693
Russell Investment Company plc Russell Investments Continental European Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 16 Russell Investments Continental European Equity Fund
Six months ended 30 September 2018
(Unaudited) EUR ‘000
Six months ended 30 September 2017
(Unaudited) EUR ‘000
Income Dividends .................................................................................................................... 12,347 10,990
Net gain (loss) on investment activities ......................................................................... 12,930 17,666 Total investment income (expense) ............................................................................. 25,277 28,656 Expenses
Total operating expenses ............................................................................................. (3,255) (3,293) Net income (expense) ................................................................................................... 22,022 25,363 Finance costs
Distributions (Note 7) ................................................................................................. (7,759) (6,711) Profit (loss) for the financial period before taxation ................................................. 14,263 18,652 Taxation
Withholding tax (Note 8) ............................................................................................ (1,048) (507) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................... 13,215 18,145 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Continental European Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Continental European Equity Fund 17
Six months ended 30 September 2018
(Unaudited) EUR ‘000
Six months ended 30 September 2017
(Unaudited) EUR ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ...................................................................... 13,215 18,145
Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) .................... 7,312 6,319 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) .................................................................................................... 7,870 724
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ............................................................................................ 28,397 25,188
Net assets attributable to redeemable participating shareholders
Beginning of financial period ...................................................................................... 524,693 526,160
End of financial period ................................................................................................ 553,090 551,348
Russell Investment Company plc Russell Investments Continental European Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 18 Russell Investments Continental European Equity Fund
Number of Shares
Fair Value EUR ‘000
Fund %
Transferable Securities (96.59%) Common Stock (96.59%) Austria (0.64%) Banks
54,004 Erste Group Bank AG ......... 1,932 0.35 Oil and Gas
EDP - Energias de Portugal SA ....................................... 4,811 0.87
Oil and Gas 54,362 Galp Energia SGPS SA ....... 929 0.17
5,740 1.04 Spain (8.23%) Airlines
56,500
International Consolidated Airlines Group SA .............. 418 0.08
Auto Components 90,769 CIE Automotive SA ............ 2,447 0.44
Russell Investment Company plc Russell Investments Continental European Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Continental European Equity Fund 21
Number of Shares
Fair Value EUR ‘000
Fund %
Banks
790,000
Banco Bilbao Vizcaya Argentaria SA ...................... 4,337 0.79
455,951 Bankia SA ........................... 1,540 0.28 903,201 CaixaBank SA ..................... 3,557 0.64
Banks 725,000 Banco Santander SA ............ 3,143 0.57
Electric Utilities 29,699 Endesa SA ........................... 553 0.10 177,200 Iberdrola SA ........................ 1,123 0.20
Insurance 123,285 Mapfre SA ........................... 333 0.06
Lodging 415,691 NH Hotel Group SA ............ 2,613 0.47
Machinery 28,983 Zardoya Otis SA .................. 233 0.04
Media
245,369
Mediaset Espana Comunicacion SA ............... 1,543 0.28
Oil and Gas 267,852 Repsol SA ........................... 4,598 0.83
Paper and Forest Products 399,293 Ence Energia y Celulosa SA 3,494 0.63
Real Estate Investment Trust 162,964 Merlin Properties Socimi SA 1,904 0.35
Software 63,260 Amadeus IT Group SA ........ 5,062 0.92
Telecommunications 754,592 Telefonica SA ...................... 5,145 0.93
Transport
115,860
Cia de Distribucion Integral Logista Holdings SA ........... 2,563 0.46
24,691 Construcciones y Auxiliar de Ferrocarriles SA .................. 885 0.16
45,491 8.23 Sweden (6.53%) Agriculture
129,226 Swedish Match AB ............. 5,692 1.03 Automobiles
40,900 Volvo AB ............................ 622 0.11 Banks
12,000
Skandinaviska Enskilda Banken AB .......................... 115 0.02
Biotechnology
145,006
Swedish Orphan Biovitrum AB ....................................... 3,650 0.66
Chemicals 23,602 Nolato AB ........................... 1,252 0.23
Construction and Engineering 312,633 Peab AB .............................. 2,462 0.45
Hand and Machine Tools 26,160 Sandvik AB ......................... 400 0.07
Number of Shares
Fair Value EUR ‘000
Fund %
Iron and Steel 118,721 SSAB AB (A Shares) .......... 514 0.09 443,900 SSAB AB (B Shares) .......... 1,550 0.28
Lodging 302,989 Scandic Hotels Group AB ... 2,929 0.53
Machinery 91,691 Atlas Copco AB .................. 2,274 0.41 91,691 Epiroc AB ........................... 881 0.16 4,520 Hexagon AB ....................... 228 0.04
Metals and Mining 113,705 Boliden AB ......................... 2,729 0.49 34,697 SKF AB .............................. 589 0.11
Oil and Gas 110,680 Lundin Petroleum AB ......... 3,645 0.66 394,090 Tethys Oil AB ..................... 3,730 0.67
Real Estate 35,620 Fabege AB .......................... 425 0.08
Retail Trade 60,753 Dustin Group AB ................ 493 0.09
Telecommunications 43,317 Tele2 AB ............................ 449 0.08 197,787 Telia Co AB ........................ 782 0.14
Toys, Games and Hobbies 15,629 G5 Entertainment AB ......... 461 0.08
Transport 41,509 Nobina AB .......................... 256 0.05
36,128 6.53 Switzerland (12.63%) Banks
46,150 UBS Group AG .................. 630 0.11 Chemicals
491 EMS-Chemie Holding AG .. 253 0.05 373 Givaudan SA ....................... 793 0.14
Commercial Services and Supplies 33,536 Adecco Group AG .............. 1,523 0.28 243 SGS SA ............................... 553 0.10
Computers and Peripherals 9,340 Logitech International SA ... 361 0.07
Construction and Engineering 1,344 Flughafen Zurich AG .......... 235 0.04
Diversified Financials 41,761 Cembra Money Bank AG ... 3,269 0.59 5,642 Partners Group Holding AG 3,871 0.70
Food Products 181,790 Nestle SA ............................ 13,110 2.37
Health Care Equipment and Supplies 3,623 Sonova Holding AG ........... 624 0.11
Insurance 481 Helvetia Holding AG .......... 254 0.05 2,543 Swiss Life Holding AG ....... 834 0.15 36,376 Swiss Re AG ....................... 2,905 0.52
Russell Investment Company plc Russell Investments Continental European Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 22 Russell Investments Continental European Equity Fund
Pharmaceuticals 201,997 Novartis AG ........................ 15,027 2.72 85,688 Roche Holding AG .............. 17,957 3.24
Retail Trade 9,982 Swatch Group AG ............... 3,434 0.62
Telecommunications
16,024
Sunrise Communications Group AG ............................ 1,255 0.23
1,133 Swisscom AG ...................... 445 0.08 69,881 12.63 United Kingdom (1.85%) Oil and Gas
241,664
Royal Dutch Shell Plc (A Shares) ................................. 7,147 1.29
23,077
Royal Dutch Shell Plc (B Shares) ................................. 697 0.13
Oil and Gas Services 87,600 TechnipFMC Plc ................. 2,374 0.43
10,218 1.85 Total Common Stock ........ 534,239 96.59
Total Transferable Securities ............................ 534,239 96.59
Number of Shares
Fair Value EUR ‘000
Fund %
Investment Funds (2.68%) Ireland (2.68%)
14,839
Russell Investment Company III plc Russell Investments Euro Liquidity Fund - Class R Roll-Up Shares ................ 14,683 2.66
76
Russell Investment Company III plc Russell Investments Sterling Liquidity Fund - Class R Roll-Up Shares ...... 86 0.02
20
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 18 0.00
Total Investment Funds .... 14,787 2.68
Total Investments excluding Financial Derivative Instruments ..... 549,026 99.27
Financial Derivative Instruments (0.06%) Open Futures Contracts (0.04%)
Notional Amount
EUR ‘000
Average Cost Price
EUR
Unrealised Gain (Loss) EUR ‘000
Fund %
651
542.18
6 of Amsterdam Index Futures Long Futures Contracts Expiring October 2018 .................................. 9 0.00
1,984
5,361.99
37 of CAC40 10 Euro Futures Long Futures Contracts Expiring October 2018 .................................. 47 0.01
1,816
12,106.57
6 of DAX Index Futures Long Futures Contracts Expiring December 2018 .............................. 20 0.00
6,981
3,339.97
209 of Euro Stoxx 50 Index Futures Long Futures Contracts Expiring December 2018 .............................. 98 0.02
735
21,011.99
7 of FTSE/MIB Index Futures Long Futures Contracts Expiring December 2018 .............................. (11) 0.00
659
9,408.51
7 of IBEX 35 Index Futures Long Futures Contracts Expiring October 2018 .................................. (3) 0.00
Russell Investment Company plc Russell Investments Continental European Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Continental European Equity Fund 23
Notional Amount
EUR ‘000
Average Cost Price
EUR
Unrealised Gain (Loss) EUR ‘000
Fund %
980
158.01
62 of OMX 30 Index Futures Long Futures Contracts Expiring October 2018 .................................. 17 0.00
3,135
7,837.41
40 of Swiss Market Index Futures Long Futures Contracts Expiring December 2018 ............................. 61 0.01
Unrealised gain on open futures contracts .................................................................... 252 0.04 Unrealised loss on open futures contracts ..................................................................... (14) 0.00 Net unrealised gain (loss) on open futures contracts ............................................... 238 0.04 Open Forward Foreign Currency Exchange Contracts (0.02%)
Unrealised gain on open forward foreign currency exchange contracts ....................... 153 0.02 Unrealised loss on open forward foreign currency exchange contracts ........................ (42) 0.00 Net unrealised gain (loss) on open forward foreign currency exchange contracts 111 0.02 Total Financial Derivative Instruments .................................................................... 349 0.06
Russell Investment Company plc Russell Investments Continental European Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 24 Russell Investments Continental European Equity Fund
Fair Value EUR ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.33%) ........................................................................ 549,431 99.33
Total Financial Liabilities at Fair Value through Profit or Loss (0.00%) .......................................................................... (56) 0.00
Net Financial Assets at Fair Value through Profit or Loss (99.33%) ................................................................................. 549,375 99.33
Other Net Assets (0.67%) ..................................................... 3,715 0.67 Net Assets ............................................................................... 553,090 100.00
Abbreviation used: SDR - Swedish Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ............................................................ 96.20 Investment funds (UCITS) .............................................................................................................................. 2.66 Exchange traded financial derivative instruments .......................................................................................... 0.05 Over the counter financial derivative instruments .......................................................................................... 0.03 Other assets ..................................................................................................................................................... 1.06
100.00 The broker for the open futures contracts is Morgan Stanley. The counterparties for the open forward foreign currency exchange contracts are:
Bank of Montreal Citibank Brown Brothers Harriman Royal Bank of Canada Commonwealth Bank of Australia State Street Bank and Trust
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
EUR ‘000 Level 2
EUR ‘000 Level 3
EUR ‘000 Total
EUR ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gains on open futures contracts ...................... 252 - - 252 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 153 - 153
Total assets ......................................................................... 534,491 14,940 - 549,431 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ (14) - - (14) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (42) - (42)
Total liabilities ................................................................... (14) (42) - (56)
Russell Investment Company plc Russell Investments Continental European Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Continental European Equity Fund 25
As at 31 March 2018
Level 1
EUR ‘000 Level 2
EUR ‘000 Level 3
EUR ‘000 Total
EUR ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 266 - 266
Total assets ......................................................................... 502,583 16,446 - 519,029 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ (446) - - (446) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (68) - (68)
Total liabilities ................................................................... (446) (68) - (514)
Russell Investment Company plc Russell Investments Continental European Equity Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 26 Russell Investments Continental European Equity Fund
Portfolio Securities Acquisition Cost
EUR ‘000 Portfolio Securities Disposal Proceeds
EUR ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments Euro Liquidity Fund Russell Investments Euro Liquidity Fund Class R Roll-Up Shares 96,470 Class R Roll-Up Shares (97,804)
Nestle SA 8,341 Koninklijke Ahold Delhaize NV (7,546) Koninklijke Philips NV 6,894 Novartis AG (6,303) Swiss Re AG 5,528 BASF SE (6,273) Bayer AG 5,385 Bayer AG (5,791) CNH Industrial NV 4,910 Fiat Chrysler Automobiles NV (5,044) SAP SE 4,894 Koninklijke Philips NV (4,885) UniCredit SpA 4,847 LVMH Moet Hennessy Louis Vuitton SE (4,501) Swedish Match AB 4,776 Intesa Sanpaolo SpA (4,434) Swedish Orphan Biovitrum AB 4,479 Fresenius Medical Care AG & Co KGaA (4,368) Siltronic AG 4,450 Nestle SA (4,267) Roche Holding AG 4,380 STMicroelectronics NV (4,232) Eni SpA 4,358 Royal Unibrew A/S (4,032) Allianz SE 4,333 Total SA (3,897) Atos SE 4,197 AXA SA (3,771) Fresenius Medical Care AG & Co KGaA 4,056 Wacker Chemie AG (3,463) Hochtief AG 4,009 Deutsche Lufthansa AG (3,453) Novartis AG 3,974 Siemens Healthineers AG (3,430) Ageas 3,956 ASR Nederland NV (3,403) Swatch Group AG 3,710 Repsol SA (3,360)
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Markets Equity Fund 27
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 2,890,560 3,293,633
Cash at bank (Note 2) .................................................................................................. 27,439 35,141 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 15,313 21,571
Debtors:
Receivable for investments sold ............................................................................... 7,365 19,262 Receivable on fund shares issued ............................................................................. 267 2,457 Dividends receivable ................................................................................................ 3,412 7,683
2,944,356 3,379,747 Liabilities Financial liabilities at fair value through profit or loss ................................................ (4,611) (5,242) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) .................................................................................................................... (160) (455) Payable for investments purchased .......................................................................... (5,381) (14,447) Payable on fund shares redeemed ............................................................................ (115) (328) Distributions payable on income share classes ......................................................... (794) (7) Capital gains tax payable .......................................................................................... (2,407) (5,999) Management fees payable ........................................................................................ (2,926) (3,571) Depositary fees payable ............................................................................................ (121) (52) Sub-custodian fees payable ...................................................................................... (654) (346) Administration fees payable ..................................................................................... (111) (79) Audit fees payable .................................................................................................... (13) (26) Other fees payable .................................................................................................... (6) -
(17,299) (30,552)
Net assets attributable to redeemable participating shareholders ........................ 2,927,184 3,349,195
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 28 Russell Investments Emerging Markets Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 58,076 70,726
Net gain (loss) on investment activities ....................................................................... (428,194) 450,643
Total investment income (expense) ........................................................................... (370,118) 521,369
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (425,925) 450,577 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Markets Equity Fund 29
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (425,925) 450,577
Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................. 27,309 33,129 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (23,395) (1,046,344)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (422,011) (562,638)
Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 3,349,195 3,839,539
End of financial period ............................................................................................. 2,927,184 3,276,901
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 30 Russell Investments Emerging Markets Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (95.96%) Common Stock (93.15%) Argentina (0.39%) Banks
99,554 Banco Macro SA ADR ........ 4,119 0.14
81,250
Grupo Financiero Galicia SA ADR .................................... 2,066 0.07
Building Products
44,893
Loma Negra Cia Industrial Argentina SA ADR ............. 397 0.01
Oil and Gas 318,075 YPF SA ADR ...................... 4,914 0.17
11,496 0.39 Bermuda (1.68%) Automobiles
6,770,599
Brilliance China Automotive Holdings Ltd ....................... 10,954 0.37
China Resources Gas Group Ltd ....................................... 6,737 0.23
Home Furnishings
3,286,280
Haier Electronics Group Co Ltd ....................................... 8,925 0.31
Iron and Steel 4,190,000 China Oriental Group Co Ltd 3,384 0.12
Metals and Mining 2,030,236 Petra Diamonds Ltd ............. 1,000 0.03
Telecommunications
74,313
Liberty Latin America Ltd (Class A) ............................. 1,549 0.05
252,453
Liberty Latin America Ltd (Class C) .............................. 5,208 0.18
49,118 1.68 Brazil (7.16%) Aerospace and Defence
766,000 Embraer SA ......................... 3,804 0.13 Agriculture
94,433 SLC Agricola SA ................ 1,442 0.05 Airlines
280,894 Azul SA ADR ..................... 4,997 0.17 Auto Components
101,008 Tupy SA .............................. 513 0.02 Banks
177,000 Banco Bradesco SA ............. 1,141 0.04 1,737,437 Banco Bradesco SA ADR ... 12,301 0.42 698,700 Banco do Brasil SA ............. 5,152 0.18
872,343
Banco Santander Brasil SA ADR .................................... 7,685 0.26
2,297,754
Itau Unibanco Holding SA ADR .................................... 25,229 0.86
Number of Shares
Fair Value USD ‘000
Fund %
Beverages 1,050,509 Ambev SA ADR ................. 4,801 0.16
Commercial Services and Supplies 846,700 Estacio Participacoes SA .... 5,298 0.18
Diversified Financials 647,400 B3 SA - Brasil Bolsa Balcao 3,793 0.13 274,741 Banco BTG Pactual SA ...... 1,465 0.05
Electric Utilities
544,200
Centrais Eletricas Brasileiras SA ....................................... 2,114 0.07
Food Products 763,979 BRF SA ADR ..................... 4,187 0.14
116,856
Cia Brasileira de Distribuicao ADR ............... 2,510 0.09
195,651 JBS SA ................................ 460 0.02 653,552 M Dias Branco SA .............. 6,446 0.22
Health Care Providers and Services
221,300
Notre Dame Intermedica Participacoes SA ................. 1,461 0.05
Hotels, Restaurants and Leisure
397,528
CVC Brasil Operadora e Agencia de Viagens SA ...... 4,311 0.15
Insurance
988,600
BB Seguridade Participacoes SA ....................................... 5,966 0.20
481,010
Hapvida Participacoes e Investimentos SA ................ 2,891 0.10
199,300 IRB Brasil Resseguros SA .. 3,316 0.11 309,600 Odontoprev SA ................... 993 0.04 163,558 Porto Seguro SA ................. 2,428 0.08
Internet Software and Services 750,400 B2W Cia Digital ................. 5,205 0.18
Iron and Steel 202,400 Gerdau SA ADR ................. 852 0.03 383,100 Vale SA .............................. 5,739 0.19 1,159,823 Vale SA ADR ..................... 17,212 0.59
Machinery 896,790 WEG SA ............................. 4,435 0.15
Oil and Gas 914,823 Petrobras Distribuidora SA . 4,467 0.15
510,611
Petroleo Brasileiro SA ADR (Voting Rights) ................... 6,163 0.21
1,174,921
Petroleo Brasileiro SA ADR (Non-voting Rights) ........... 12,290 0.42
60,636 Ultrapar Participacoes SA ... 567 0.02
34,292
Ultrapar Participacoes SA ADR .................................... 318 0.01
Paper and Forest Products 337,700 Fibria Celulose SA .............. 6,386 0.22 74,000 Suzano Papel e Celulose SA 891 0.03
Real Estate 824,269 BR Malls Participacoes SA . 1,986 0.07
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Markets Equity Fund 31
Number of Shares
Fair Value USD ‘000
Fund %
Retail Trade
554,058
Arezzo Industria e Comercio SA ....................................... 5,946 0.20
278,100 Lojas Americanas SA .......... 832 0.03 119,400 Raia Drogasil SA ................. 2,166 0.07 592,100 Via Varejo SA ..................... 2,212 0.08
Software 200,652 Linx SA ............................... 822 0.03 198,400 TOTVS SA .......................... 1,247 0.04
Telecommunications 150,500 Tim Participacoes SA ADR 2,181 0.08
Textile and Apparel 810,446 Cia Hering ........................... 3,606 0.12 669,496 Grendene SA ....................... 1,128 0.04
Transport 2,160,008 Rumo SA ............................. 8,102 0.28
Telecommunications 5,952,000 China Telecom Corp Ltd ..... 2,959 0.10
Textile and Apparel 262,000 Weiqiao Textile Co ............. 92 0.00
386,188 13.19 Colombia (0.20%) Banks
67,335 Bancolombia SA ................. 723 0.02 116,161 Bancolombia SA ADR ........ 4,846 0.17
Oil and Gas 11,400 Ecopetrol SA ADR .............. 307 0.01
5,876 0.20 Cyprus (0.00%) Commercial Services and Supplies
25,233
Global Ports Investments Plc GDR .................................... 78 0.00
Czech Republic (0.16%) Banks
112,776 Komercni Banka AS ........ 4,629 0.16 Egypt (0.37%) Banks
768,314
Commercial International Bank Egypt SAE ................. 3,601 0.12
Number of Shares
Fair Value USD ‘000
Fund %
111,432
Commercial International Bank Egypt SAE GDR (UK Listed) ................................. 508 0.02
1,353,893
Commercial International Bank Egypt SAE GDR (US Listed) ................................. 6,174 0.21
Food Products
182,395
Arabian Food Industries Co DOMTY GDR .................... 110 0.00
498,740 Edita Food Industries SAE . 461 0.02 10,854 0.37 Finland (0.21%) Auto Components
151,935 Nokian Renkaat OYJ ...... 6,228 0.21 Greece (0.72%) Banks
6,301,224 Alpha Bank AE ................... 9,068 0.31 4,587,966 Eurobank Ergasias SA ........ 3,458 0.12 1,070,753 National Bank of Greece SA 2,176 0.07
Entertainment 169,666 OPAP SA ............................ 1,781 0.06
Retail Trade 308,077 Jumbo SA ........................... 4,580 0.16
21,063 0.72 Hong Kong (4.39%) Automobiles
3,840,500 Sinotruk Hong Kong Ltd .... 8,363 0.29 Banks
3,218,000 CITIC Ltd ........................... 4,795 0.16 Computers and Peripherals
7,082,000 Lenovo Group Ltd .............. 5,177 0.18 Diversified Financials
1,726,000 China Everbright Ltd .......... 3,093 0.10
220,902
Hong Kong Exchanges & Clearing Ltd ........................ 6,324 0.22
Real Estate 2,779,018 Central Pattana PCL ............ 7,132 0.24 34,600 Central Pattana PCL NVDR 89 0.00 3,295,316 Pruksa Holding PCL ............ 2,160 0.08
Retail Trade 2,760,000 CP ALL PCL ....................... 5,889 0.20 4,048,100 Minor International PCL ..... 5,132 0.18
66,124 2.26 Turkey (1.55%) Automobiles
50,220 Ford Otomotiv Sanayi AS ... 550 0.02
719,983
Tofas Turk Otomobil Fabrikasi AS ........................ 2,562 0.09
Banks 2,702,940 Turkiye Garanti Bankasi AS 3,469 0.12 3,089,424 Turkiye Is Bankasi AS ........ 2,273 0.08 1,246,484 Yapi ve Kredi Bankasi AS .. 390 0.01
Beverages
460,838
Anadolu Efes Biracilik Ve Malt Sanayii AS .................. 1,617 0.05
132,923 Coca-Cola Icecek AS .......... 747 0.03 Construction and Engineering
1,673,821 Enka Insaat ve Sanayi AS ... 1,452 0.05
Number of Shares
Fair Value USD ‘000
Fund %
472,705
TAV Havalimanlari Holding AS ....................................... 2,461 0.08
Distributors
2,347,632
Turkiye Sise ve Cam Fabrikalari AS ..................... 2,282 0.08
Food Products 201,963 BIM Birlesik Magazalar AS 2,735 0.09 170,366 Ulker Biskuvi Sanayi AS .... 480 0.02
Health Care Providers and Services 1,069,107 MLP Saglik Hizmetleri AS . 2,157 0.07
Holding Companies - Diversified Operations
641,860
Haci Omer Sabanci Holding AS ....................................... 815 0.03
824,555 Tekfen Holding AS ............. 2,968 0.10 Iron and Steel
2,899,462
Eregli Demir ve Celik Fabrikalari TAS .................. 5,324 0.18
690,518
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS . 467 0.02
Oil and Gas
372,078
Tupras Turkiye Petrol Rafinerileri AS .................... 8,312 0.28
Real Estate
3,836,366
Emlak Konut Gayrimenkul Yatirim Ortakligi AS .......... 1,143 0.04
Retail Trade ........................ 544,144 Sok Marketler Ticaret AS ... 803 0.03
Telecommunications
1,232,777
Turkcell Iletisim Hizmetleri AS ....................................... 2,368 0.08
45,375 1.55 United Arab Emirates (0.67%) Banks
1,333,116
Abu Dhabi Commercial Bank PJSC .......................... 2,878 0.10
Commercial Services and Supplies 242,066 DP World Ltd ..................... 4,623 0.16
Oil and Gas
10,035
ADES International Holding Ltd ...................................... 136 0.00
Real Estate 6,602,960 Aldar Properties PJSC ........ 3,290 0.11 5,632,242 Emaar Properties PJSC ....... 7,590 0.26
Retail Trade
1,027,670
Abu Dhabi National Oil Co for Distribution PJSC .......... 669 0.02
Telecommunications
103,108
Emirates Telecommunications Group Co PJSC .............................. 469 0.02
19,655 0.67 United Kingdom (1.17%) Banks
338,522 Bank of Georgia Group Plc . 7,555 0.26
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 40 Russell Investments Emerging Markets Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Health Care Providers and Services 605,578 Mediclinic International Plc 3,388 0.12
Metals and Mining 358,550 KAZ Minerals Plc ............... 2,570 0.09
Oil and Gas 3,003,939 Tullow Oil Plc ..................... 10,314 0.35 676,570 Vivo Energy Plc .................. 1,139 0.04
Personal Products 250,960 Georgia Capital Plc ............. 3,651 0.12 1,351,659 PZ Cussons Plc .................... 4,121 0.14
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Markets Equity Fund 41
Number of Shares
Fair Value USD ‘000
Fund %
Taiwan (0.01%) Diversified Financials
124,979
CTBC Financial Holding Co Ltd ....................................... 256 0.01
Total Preferred Stock ........ 60,217 2.06
Principal Amount
Long Term Bonds and Notes (0.00%) Brazil (0.00%)
Vale SA BRL 46,604 1.000%* .............................. - 0.00
Total Long Term Bonds and Notes ............................ - 0.00
Number of Shares
Warrants (0.75%) Australia (0.16%)
2,310,777
Macquarie Bank Ltd (FPT Corp)** ............................... 4,586 0.16
United Kingdom (0.36%)
242,261 HSBC Bank ......................... 2,842 0.10
258,427
HSBC Bank Plc (Al Tayyar AB)** .................................. 1,592 0.05
192,810
HSBC Bank Plc (Savola Group)** ............................. 1,563 0.05
109,304
HSBC Bank Plc (Almarai Co)** ................................... 1,415 0.05
292,808
HSBC Bank Plc (Herfy Food Services Co)** .................... 3,264 0.11
10,676 0.36
Number of Shares
Fair Value USD ‘000
Fund %
Switzerland (0.23%) 2,293,640 UBS AG (Delta One)** ...... 6,714 0.23
Total Warrants .................. 21,976 0.75 Rights (0.00%) Tunisia (0.00%)
1
Societe Frigorifique et Brasserie de Tunis SA ......... - 0.00
Total Rights ....................... - 0.00
Total Transferable Securities ........................... 2,808,829 95.96
Investment Funds (2.63%) Ireland (2.63%)
4
Russell Investment Company III plc Russell Investments Euro Liquidity Fund - Class R Roll-Up Shares ................ 5 0.00
74,855
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 77,096 2.63
Total Investment Funds .... 77,101 2.63
Total Investments excluding Financial Derivative Instruments ..... 2,885,930 98.59
Financial Derivative Instruments (0.00%) Open Futures Contracts (0.01%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
1,246 19.68
633 of BIST 30 Futures Long Futures Contracts Expiring October 2018 ..................................... 91 0.00
6,367 3,577.00
178 of FTSE JSE TOP 40 Index Futures Long Futures Contracts Expiring December 2018 ................................. (63) 0.00
26,717 3,515.37
152 of Hang Seng Index Futures Long Futures Contracts Expiring October 2018 ..................................... 359 0.01
26,820 1,382.50
388 of HSCEI Futures Long Futures Contracts Expiring October 2018 ..................................... 610 0.02
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 42 Russell Investments Emerging Markets Equity Fund
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
14,682 0.26
222 of KOSPI 200 Index Futures Long Futures Contracts Expiring December 2018 ................................. 409 0.01
3,730 2,703.21
138 of Mexico Bolsa Index Futures Long Futures Contracts Expiring December 2018 ................................. (25) 0.00
21,319 1,029.88
414 of MSCI Emerging Markets Long Futures Contracts Expiring December 2018 ................................. 410 0.02
(51,985) (1,023.32)
1,016 of MSCI Emerging Markets Short Futures Contracts Expiring December 2018 ................................. (1,340) (0.05)
34,736 410.10
847 of MSCI Taiwan Index Futures Long Futures Contracts Expiring October 2018 ..................................... 42 0.00
10,521 11,051.94
476 of SGX CNX NIFTYR 50 Index Futures Long Futures Contracts Expiring October 2018 ..................................... (89) 0.00
Unrealised gain on open futures contracts ...................................................................... 1,921 0.06 Unrealised loss on open futures contracts ....................................................................... (1,517) (0.05) Net unrealised gain (loss) on open futures contracts ................................................. 404 0.01 Open Forward Foreign Currency Exchange Contracts ((0.02)%)
Unrealised gain on open forward foreign currency exchange contracts .......................... 2,520 0.09 Unrealised loss on open forward foreign currency exchange contracts ........................... (3,094) (0.11) Net unrealised gain (loss) on open forward foreign currency exchange contracts .. (574) (0.02)
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 44 Russell Investments Emerging Markets Equity Fund
Total Return Swaps (0.01%)
Ccy
Notional Amount
‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
BRL 23,843 0.00% Bovespa Index
Future 17/10/2018
189 0.01 Total return equity swaps at fair value ........................................................................ 189 0.01 Total Financial Derivative Instruments ....................................................................... 19 0.00
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (98.75%) .......................................................................... 2,890,560 98.75
Total Financial Liabilities at Fair Value through Profit or Loss ((0.16)%) .......................................................................... (4,611) (0.16)
Net Financial Assets at Fair Value through Profit or Loss (98.59%) ................................................................................... 2,885,949 98.59
Other Net Assets (1.41%) ....................................................... 41,235 1.41 Net Assets ................................................................................. 2,927,184 100.00
Abbreviation used: ADR - American Depository Receipt GDR - Global Depository Receipt NVDR - Non-Voting Depository Receipt * Perpetual bond. ** Equity Linked Note (ELN). The first named entity is the issuer of the ELN and the underlying entity of the ELN follows in brackets
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ....................................................... 94.61 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) ........................... 0.75 Investment funds (UCITS) ........................................................................................................................ 2.61 Exchange traded financial derivative instruments ..................................................................................... 0.07 Over the counter financial derivative instruments ..................................................................................... 0.09 Other assets ................................................................................................................................................ 1.87 100.00
The broker for the open futures contracts is Goldman Sachs. The counterparties for the open forward foreign currency exchange contracts are:
Bank of America Merrill Lynch JP Morgan Bank of Montreal Morgan Stanley Barclays Bank Natwest Markets Plc Brown Brothers Harriman Royal Bank of Canada Citibank Standard Chartered Bank Deutsche Bank State Street Bank and Trust Company HSBC Westpac Banking Corp
The counterparty for total return swaps is Goldman Sachs.
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Markets Equity Fund 45
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 1,921 - - 1,921 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 2,520 - 2,520 Total return equity swaps at fair value ............................. - 189 - 189
Total assets ......................................................................... 2,810,750 79,810 - 2,890,560 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (1,517) - - (1,517) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (3,094) - (3,094)
Total liabilities ................................................................... - (3,094) - (4,611) As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 1,374 - - 1,374 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 2,493 - 2,493 Total return equity swaps at fair value ............................. - 76 - 76
Total assets ......................................................................... 3,152,763 140,863 7 3,293,633 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (2,578) - - (2,578) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (2,289) - (2,289) Total return equity swaps at fair value ............................. - (375) - (375)
Total liabilities ................................................................... (2,578) (2,664) - (5,242)
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 46 Russell Investments Emerging Markets Equity Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 423,737 Class R Roll-Up Shares (463,394)
Alibaba Group Holding Ltd ADR 19,973 Alibaba Group Holding Ltd ADR (34,568) China CITIC Bank Corp Ltd 17,586 Taiwan Semiconductor Manufacturing Co Ltd ADR (22,696) Baidu Inc ADR 16,340 Tencent Holdings Ltd (20,683) Sberbank of Russia PJSC ADR 14,164 Bank of China Ltd (17,164) Ping An Insurance Group Co of China Ltd 13,537 China Construction Bank Corp (17,018) Tata Consultancy Services Ltd 13,206 Infosys Ltd ADR (16,816) China Mobile Ltd 12,270 Hana Financial Group Inc (12,890) Infosys Ltd ADR 11,685 SK Hynix Inc (12,399) Yandex NV 11,338 China Mobile Ltd (12,330) Vale SA 11,082 Turk Hava Yollari AO (11,269) China Petroleum & Chemical Corp 11,034 Petroleo Brasileiro SA ADR (10,631) Samsung Electronics Co Ltd 10,942 Baidu Inc (10,601) ICICI Bank Ltd 10,372 Itau Unibanco Holding SA ADR (10,219) Wuliangye Yibin Co Ltd 10,240 Galaxy Entertainment Group Ltd (9,865) Gazprom PJSC ADR 10,112 POSCO (9,727) Taiwan Semiconductor Manufacturing Co Ltd 9,901 Nanya Technology Corp (9,179) Yageo Corp 9,897 Samsung Electronics Co Ltd (8,835) Woori Bank 9,668 Standard Bank Group Ltd (8,782) Sino-American Silicon Products Inc 9,649 CIFI Holdings Group Co Ltd (8,781)
Russell Investment Company plc Russell Investments Global Bond Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 47
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 1,862,485 1,996,947 Cash at bank (Note 2) .................................................................................................. 9,163 5,925 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 35,021 27,140 Debtors:
Receivable for investments sold .............................................................................. 178,239 96,176 Receivable on fund shares issued ............................................................................ 395 381 Interest receivable .................................................................................................... 9,684 10,765 Prepayments and other debtors ................................................................................ 71 63
2,095,058 2,137,397 Liabilities Financial liabilities at fair value through profit or loss ................................................ (28,055) (27,181) Creditors – amounts falling due within one financial year:
Bank overdraft (Note 2) ........................................................................................... - (8,426) Cash due to brokers and counterparties for open financial derivative instruments (Note 2) .................................................................................................................... (10,442) (1,445) Payable for investments purchased .......................................................................... (366,855) (218,499) Payable on fund shares redeemed ............................................................................ (1,353) (3,583) Distributions payable on income share classes ........................................................ (4,120) (4,199) Management fees payable ........................................................................................ (1,067) (1,186) Depositary fees payable ........................................................................................... (156) (31) Sub-custodian fees payable ...................................................................................... (61) (78) Administration fees payable .................................................................................... (77) (51) Audit fees payable ................................................................................................... (16) (30)
(412,202) (264,709) Net assets attributable to redeemable participating shareholders ........................ 1,682,856 1,872,688
Russell Investment Company plc Russell Investments Global Bond Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 48 Russell Investments Global Bond Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends ................................................................................................................. 22 - Interest income ........................................................................................................ 22,902 19,878
22,924 19,878 Net gain (loss) on investment activities ...................................................................... (129,263) 120,080 Total investment income (expense) ......................................................................... (106,339) 139,958 Expenses
Total operating expenses .......................................................................................... (7,720) (7,921) Net income (expense) ................................................................................................ (114,059) 132,037 Finance costs
Distributions (Note 7) ............................................................................................. (23,964) (22,534) Profit (loss) for the financial period before taxation ............................................. (138,023) 109,503 Taxation (Note 8)
Net increase (decrease) in net assets attributable to redeemable participating
shareholders resulting from operations ................................................................ (138,273) 109,228 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Global Bond Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 49
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (138,273) 109,228 Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................ 17,869 15,685 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (69,428) 193,110
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (189,832) 318,023 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................. 1,872,688 1,599,050
End of financial period ............................................................................................ 1,682,856 1,917,073
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 50 Russell Investments Global Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
Transferable Securities (101.58%) Long Term Bonds and Notes (92.60%) Australia (1.93%)
Australia & New Zealand Banking Group Ltd
USD 2,000,000 2.822% due 19/08/20 ....... 2,010 0.12 Australia Government Bond
AUD 2,216,000 4.500% due 15/04/20 ....... 1,664 0.10 5,503,000 5.750% due 15/07/22 ....... 4,503 0.27 3,194,000 2.250% due 21/11/22 ....... 2,316 0.14 755,000 3.250% due 21/04/25 ....... 572 0.03 1,890,000 2.750% due 21/11/27 ....... 1,378 0.08 288,000 3.750% due 21/04/37 ....... 231 0.01
Driver Australia Five Trust 1,100,977 2.780% due 21/07/26 ....... 796 0.05
Firstmac Mortgage Funding Trust
USD 825,377 3.081% due 08/03/49 ....... 823 0.05 Flexi ABS Trust AUD 1,100,000 2.920% due 23/06/23 ....... 797 0.05
FMG Resources August 2006 Pty Ltd
USD 982,000 4.750% due 15/05/22 ....... 976 0.06
Latitude Australia Personal Loans Trust
AUD 500,000 4.135% due 17/01/28 ....... 362 0.02 National Australia Bank Ltd
USD 1,000,000 3.017% due 09/12/19 ....... 1,006 0.06 1,350,000 2.820% due 22/05/20 ....... 1,356 0.08 900,000 2.250% due 16/03/21 ....... 879 0.05
EUR 2,121,000 1.375% due 30/08/28 ....... 2,435 0.14
New South Wales Treasury Corp
AUD 900,000 2.750% due 20/11/25 ....... 946 0.06
Pacific National Finance Pty Ltd
USD 700,000 4.750% due 22/03/28 ....... 674 0.04
Pepper Residential Securities Trust
AUD 1,026,180 2.894% due 13/08/57 ....... 744 0.04 1,300,000 3.035% due 16/09/59 ....... 937 0.06
980,000 4.125% due 12/01/28 ...... 917 0.05 CAL Funding III Ltd
1,091,125 3.620% due 25/06/42 ...... 1,066 0.06 2,399 0.14 Brazil (1.04%)
Brazil Notas do Tesouro Nacional Serie B
BRL 8,805,000 6.000% due 15/05/45 ...... 7,081 0.42 1,279,000 6.000% due 15/08/50 ...... 1,017 0.06
Brazil Notas do Tesouro Nacional Serie F
4,251,000 10.000% due 01/01/21 .... 1,103 0.07 10,976,000 10.000% due 01/01/23 .... 2,743 0.16 8,971,000 10.000% due 01/01/25 .... 2,177 0.13 14,500,000 10.000% due 01/01/27 .... 3,430 0.20 17,551 1.04 Canada (2.81%)
Bank of Nova Scotia USD 800,000 1.875% due 26/04/21 ...... 774 0.05
Canadian Government Bond CAD 2,805,000 3.500% due 01/06/20 ...... 2,216 0.13
910,000 1.500% due 01/06/23 ...... 679 0.04 6,856,000 2.500% due 01/06/24 ...... 5,344 0.32 2,161,000 3.500% due 01/12/45 ...... 2,027 0.12 910,000 2.500% due 01/12/48 ...... 754 0.04
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 51
Principal Amount
Fair Value USD ‘000
Fund %
Canadian Government Real Return Bond
232,232 1.500% due 01/12/44 ....... 216 0.01
Canadian Natural Resources Ltd
USD 700,000 3.450% due 15/11/21 ....... 697 0.04
Canadian Pacific Railway Co
600,000 4.500% due 15/01/22 ....... 618 0.04 CPPIB Capital Inc
6,880,000 2.391% due 27/12/19 ....... 6,875 0.41
Fairfax Financial Holdings Ltd
CAD 1,940,000 4.700% due 16/12/26 ....... 1,536 0.09 EUR 1,300,000 2.750% due 29/03/28 ....... 1,521 0.09 Golden Credit Card Trust USD 700,000 2.558% due 15/02/21 ....... 701 0.04 National Bank of Canada
1,000,000 2.800% due 20/08/20 ....... 989 0.06 Nutrien Ltd 210,000 3.375% due 15/03/25 ....... 199 0.01 372,000 3.000% due 01/04/25 ....... 343 0.02
Province of British Columbia
CAD 700,000 2.700% due 18/12/22 ....... 543 0.03 Province of Ontario Canada 780,000 4.000% due 02/06/21 ....... 627 0.04 960,000 3.150% due 02/06/22 ....... 756 0.04 700,000 3.500% due 02/06/24 ....... 560 0.03 Province of Quebec Canada 1,430,000 4.250% due 01/12/21 ....... 1,164 0.07 980,000 3.500% due 01/12/22 ....... 784 0.05 800,000 3.000% due 01/09/23 ....... 627 0.04 190,000 6.000% due 01/10/29 ....... 186 0.01 1,200,000 5.000% due 01/12/38 ....... 1,172 0.07 320,000 5.000% due 01/12/41 ....... 319 0.02 Royal Bank of Canada
USD 1,500,000 2.300% due 22/03/21 ....... 1,468 0.09 GBP 1,267,000 1.125% due 22/12/21 ....... 1,637 0.10
Toronto-Dominion Bank USD 4,355,000 2.700% due 01/05/20 ....... 4,318 0.26 GBP 4,441,000 1.072% due 07/06/21 ....... 5,799 0.34 USD 1,000,000 2.500% due 18/01/22 ....... 973 0.06 Trillium Credit Card Trust II
Bayer AG 2,590,000 3.000% due 01/07/75 ...... 3,077 0.18
Bundesobligation 800,000 Zero Coupon due 17/04/20 938 0.06
Bundesrepublik Deutschland Bundesanleihe
74,746 0.250% due 15/02/27 ...... 86 0.01 2,876,127 0.500% due 15/08/27 ...... 3,382 0.20 11,557,000 0.500% due 15/02/28 ...... 13,525 0.80 640,000 1.250% due 15/08/48 ...... 776 0.05 Deutsche Bank AG
USD 5,200,000 2.700% due 13/07/20 ...... 5,096 0.30 600,000 3.307% due 13/07/20 ...... 598 0.04 1,000,000 3.162% due 22/01/21 ...... 989 0.06
EUR 3,000,000 1.500% due 20/01/22 ...... 3,502 0.21 400,000 1.750% due 17/01/28 ...... 431 0.03
Deutsche Bundesrepublik Inflation Linked Bond
641,430 0.100% due 15/04/23 ...... 800 0.05
Kreditanstalt fuer Wiederaufbau
1,169,000 0.625% due 15/01/25 ...... 1,380 0.08
Landwirtschaftliche Rentenbank
200,000 2.875% due 30/08/21 ...... 253 0.01
Red & Black Auto Germany 5 UG
1,056,756 0.128% due 15/01/27 ...... 1,234 0.07
State of North Rhine-Westphalia
1,880,000 0.625% due 17/11/23 ...... 2,231 0.13 Volkswagen Leasing GmbH
NZD 1,689,000 6.000% due 15/05/21 ...... 1,240 0.08 3,591,000 5.500% due 15/04/23 ...... 2,742 0.16 2,157,000 5.500% due 15/04/23 ...... 1,647 0.10 7,418,000 2.750% due 15/04/25 ...... 5,071 0.30
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 56 Russell Investments Global Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
619,000 4.500% due 15/04/27 ....... 475 0.03
New Zealand Government Inflation Linked Bond
5,150,000 2.000% due 20/09/25 ....... 3,864 0.23 2,253,917 2.500% due 20/09/40 ....... 1,741 0.10 16,780 1.00 Peru (0.06%)
Peru Government Bond PEN 3,200,000 6.150% due 12/08/32 ....... 992 0.06
Poland (1.25%)
Republic of Poland Government Bond
PLN 8,880,000 1.500% due 25/04/20 ....... 2,413 0.14 4,720,000 5.250% due 25/10/20 ....... 1,377 0.08 15,301,000 2.000% due 25/04/21 ....... 4,179 0.25 12,980,000 5.750% due 25/10/21 ....... 3,929 0.24 20,911,000 4.000% due 25/10/23 ....... 6,063 0.36 11,546,000 2.500% due 25/07/26 ....... 3,003 0.18 20,964 1.25 Portugal (0.05%)
Portugal Obrigacoes do Tesouro OT
EUR 650,000 2.875% due 15/10/25 ....... 831 0.05 Qatar (0.24%)
Qatar Government International Bond
USD 900,000 3.875% due 23/04/23 ....... 908 0.05 1,400,000 3.875% due 23/04/23 ....... 1,412 0.08 900,000 4.500% due 23/04/28 ....... 928 0.06 800,000 5.103% due 23/04/48 ....... 834 0.05 4,082 0.24 Romania (0.03%)
Romanian Government International Bond
496,000 6.750% due 07/02/22 ....... 542 0.03 Saudi Arabia (0.23%)
Saudi Government International Bond
2,200,000 4.000% due 17/04/25 ....... 2,205 0.13 1,700,000 4.500% due 17/04/30 ....... 1,711 0.10 3,916 0.23 Singapore (1.58%)
Oversea-Chinese Banking Corp Ltd
900,000 2.762% due 17/05/21 ....... 901 0.05 Singapore Government Bond
SGD 587,000 1.625% due 01/10/19 ....... 429 0.03 3,160,000 2.000% due 01/07/20 ....... 2,317 0.14 4,007,000 2.250% due 01/06/21 ....... 2,948 0.17
Principal Amount
Fair Value USD ‘000
Fund %
3,464,000 1.250% due 01/10/21 ...... 2,476 0.15 5,970,000 3.125% due 01/09/22 ...... 4,534 0.27 2,523,000 2.750% due 01/07/23 ...... 1,890 0.11 4,213,000 3.000% due 01/09/24 ...... 3,197 0.19 2,840,000 2.375% due 01/06/25 ...... 2,078 0.12 2,463,000 2.125% due 01/06/26 ...... 1,766 0.10 5,240,000 3.500% due 01/03/27 ...... 4,138 0.25 26,674 1.58 Slovakia (0.15%)
Slovakia Government Bond EUR 2,000,000 1.875% due 09/03/37 ...... 2,478 0.15
South Africa (0.09%)
Republic of South Africa Government Bond
ZAR 20,000,000 10.500% due 21/12/26 .... 1,532 0.09 Spain (1.17%)
Autonomous Community of Catalonia
EUR 2,000,000 4.950% due 11/02/20 ...... 2,441 0.14 500,000 5.900% due 28/05/30 ...... 690 0.04 1,056,000 4.220% due 26/04/35 ...... 1,284 0.08
Banco Bilbao Vizcaya Argentaria SA
1,200,000 7.000%* .......................... 1,421 0.08 Banco Santander SA
1,700,000 6.250%* .......................... 1,991 0.12 CaixaBank SA
600,000 6.750%* .......................... 754 0.04 FCC Aqualia SA
1,120,000 2.629% due 08/06/27 ...... 1,303 0.08
Inmobiliaria Colonial Socimi SA
1,000,000 2.500% due 28/11/29 ...... 1,133 0.07 Spain Government Bond 910,000 4.000% due 30/04/20 ...... 1,128 0.07 895,000 5.850% due 31/01/22 ...... 1,236 0.07 398,000 0.450% due 31/10/22 ...... 465 0.03 384,000 1.600% due 30/04/25 ...... 466 0.03 925,000 1.450% due 31/10/27 ...... 1,081 0.06 1,608,000 1.400% due 30/04/28 ...... 1,862 0.11 172,000 5.150% due 31/10/28 ...... 268 0.02 805,000 5.150% due 31/10/44 ...... 1,424 0.08 615,000 3.450% due 30/07/66 ...... 824 0.05 19,771 1.17 Sweden (0.38%)
Skandinaviska Enskilda Banken AB
USD 351,000 2.742% due 17/05/21 ...... 352 0.02 2,200,000 2.742% due 17/05/21 ...... 2,203 0.13
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 57
Principal Amount
Fair Value USD ‘000
Fund %
Stadshypotek AB 1,200,000 2.500% due 05/04/22 ....... 1,165 0.07 Svenska Handelsbanken AB 1,275,000 2.782% due 24/05/21 ....... 1,280 0.08 800,000 3.350% due 24/05/21 ....... 799 0.05
Sweden Government Bond SEK 4,665,000 2.500% due 12/05/25 ....... 601 0.03
6,400 0.38 Switzerland (0.36%)
Credit Suisse AG USD 1,290,000 3.000% due 29/10/21 ....... 1,272 0.08
Credit Suisse Group AG 750,000 2.997% due 14/12/23 ....... 716 0.04 700,000 4.207% due 12/06/24 ....... 698 0.04
Swiss Confederation Government Bond
CHF 428,000 1.500% due 24/07/25 ....... 488 0.03 202,000 1.250% due 27/06/37 ....... 235 0.01
UBS AG USD 800,000 2.907% due 08/06/20 ....... 804 0.05
UBS Group Funding Switzerland AG
1,200,000 3.000% due 15/04/21 ....... 1,183 0.07 600,000 2.650% due 01/02/22 ....... 580 0.04 5,976 0.36 Tunisia (0.03%)
Banque Centrale de Tunisie International Bond
EUR 394,000 5.625% due 17/02/24 ....... 448 0.03 United Arab Emirates (0.09%)
DP World Ltd GBP 1,200,000 4.250% due 25/09/30 ....... 1,553 0.09
United Kingdom (4.09%)
Alba 2007-1 Plc 1,568,205 0.967% due 17/03/39 ....... 1,938 0.12
Barclays Bank Plc USD 900,000 7.625% due 21/11/22 ....... 977 0.06
Barclays Plc 1,200,000 4.451% due 10/08/21 ....... 1,245 0.07 700,000 3.684% due 10/01/23 ....... 682 0.04
EUR 600,000 0.625% due 14/11/23 ....... 675 0.04 USD 600,000 4.338% due 16/05/24 ....... 593 0.04 EUR 1,660,000 2.000% due 07/02/28 ....... 1,845 0.11
BAT International Finance Plc
USD 900,000 2.750% due 15/06/20 ....... 891 0.05
Business Mortgage Finance 7 Plc
GBP 280,653 2.802% due 15/02/41 ....... 365 0.02
Principal Amount
Fair Value USD ‘000
Fund %
Channel Link Enterprises Finance Plc
EUR 771,000 1.761% due 30/06/50 ...... 906 0.05
European Bank for Reconstruction & Development
AUD 1,800,000 0.500% due 21/12/23 ...... 1,148 0.07 Eurosail Plc
GBP 56,079 0.962% due 10/12/44 ...... 73 0.00 GBP 685,665 1.750% due 13/06/45 ...... 892 0.05 Gemgarto Plc
810,000 2.905% due 16/02/47 ...... 1,064 0.06 EUR 1,450,000 0.211% due 18/06/39 ...... 1,467 0.09
USD 800,000 3.498% due 15/05/23 ....... 776 0.05 1,000,000 3.875% due 12/09/23 ....... 972 0.06 700,000 3.923% due 25/06/24 ....... 705 0.04 700,000 4.519% due 25/06/24 ....... 699 0.04 600,000 4.892% due 18/05/29 ....... 597 0.04 Santander UK Plc 800,000 3.400% due 01/06/21 ....... 797 0.05
GBP 200,000 5.750% due 02/03/26 ....... 328 0.02 2,030,000 5.250% due 16/02/29 ....... 3,377 0.20
Standard Chartered Plc USD 800,000 4.247% due 20/01/23 ....... 803 0.05 Tesco Property Finance 3 Plc GBP 340,202 5.744% due 13/04/40 ....... 509 0.03
United Kingdom Gilt 1,080,000 1.750% due 07/09/37 ....... 1,378 0.08 1,175,000 3.250% due 22/01/44 ....... 1,933 0.12 4,095,000 3.500% due 22/01/45 ....... 7,051 0.42 400,000 4.250% due 07/12/55 ....... 860 0.05 Vodafone Group Plc
USD 800,000 3.750% due 16/01/24 ....... 792 0.05 570,000 5.000% due 30/05/38 ....... 564 0.03 1,898,000 6.250% due 03/10/78 ....... 1,893 0.11
Warwick Finance Residential Mortgages No One Plc
GBP 800,000 3.004% due 21/09/49 ....... 1,045 0.06 68,904 4.09 United States (48.35%) AbbVie Inc
USD 800,000 2.500% due 14/05/20 ....... 791 0.05 900,000 2.900% due 06/11/22 ....... 875 0.05 543,000 4.250% due 14/11/28 ....... 538 0.03 773,000 4.875% due 14/11/48 ....... 764 0.05
ABFC Trust 1,525,532 2.756% due 25/11/34 ....... 1,529 0.09
Accredited Mortgage Loan Trust
6,380,000 2.486% due 25/09/36 ....... 5,250 0.31
ACE Securities Corp Home Equity Loan Trust
415,962 3.176% due 25/04/35 ....... 418 0.03 480,552 2.366% due 25/07/36 ....... 248 0.01
Adjustable Rate Mortgage Trust
50,889 4.065% due 25/09/35 ....... 48 0.00
Principal Amount
Fair Value USD ‘000
Fund %
Air Lease Corp 600,000 2.625% due 01/07/22 ...... 575 0.03
AK Steel Corp 473,000 7.625% due 01/10/21 ...... 484 0.03
Ally Auto Receivables Trust 900,000 2.720% due 17/05/21 ...... 900 0.05 Ally Master Owner Trust 800,000 2.558% due 15/02/21 ...... 802 0.05 900,000 2.478% due 15/07/22 ...... 903 0.05 Alternative Loan Trust 65,087 5.250% due 25/06/35 ...... 61 0.00 110,606 3.242% due 25/11/35 ...... 105 0.01 58,114 2.845% due 25/12/35 ...... 54 0.00 96,191 5.500% due 25/03/36 ...... 74 0.00 663,128 6.000% due 25/05/36 ...... 565 0.03 556,666 6.000% due 25/10/36 ...... 467 0.03 170,408 3.716% due 25/02/37 ...... 166 0.01 156,367 6.250% due 25/08/37 ...... 134 0.01 88,829 2.406% due 25/09/46 ...... 82 0.01 2,157,679 2.356% due 25/04/47 ...... 2,079 0.12
Ambac Assurance Corp 679 5.100% due 07/06/20 ...... 1 0.00 American Express Co 800,000 3.375% due 17/05/21 ...... 801 0.05 3,800,000 2.961% due 27/02/23 ...... 3,800 0.23
American Express Credit Account Master Trust
1,300,000 1.640% due 15/12/21 ...... 1,292 0.08 5,185,000 2.670% due 17/10/22 ...... 5,166 0.31
American Express Credit Corp
1,500,000 2.909% due 30/10/19 ...... 1,507 0.09
American Home Mortgage Investment Trust
15,519 4.534% due 25/02/45 ...... 16 0.00
American Honda Finance Corp
800,000 2.937% due 09/09/21 ...... 807 0.05 3,300,000 2.691% due 05/11/21 ...... 3,306 0.20
American Tower Corp 800,000 5.900% due 01/11/21 ...... 851 0.05
AmeriCredit Automobile Receivables Trust
66,059 1.510% due 18/05/20 ...... 66 0.00 1,470,968 2.080% due 08/09/20 ...... 1,470 0.09 700,000 2.395% due 19/07/21 ...... 700 0.04
1,240,000 3.326% due 25/03/35 ...... 1,238 0.07 Andeavor Logistics LP
2,180,000 5.250% due 15/01/25 ...... 2,235 0.13 Antero Resources Corp
486,000 5.375% due 01/11/21 ...... 493 0.03
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 59
Principal Amount
Fair Value USD ‘000
Fund %
Apple Inc 2,000,000 2.000% due 06/05/20 ....... 1,973 0.12 330,000 3.440% due 23/02/21 ....... 339 0.02
Ashford Hospitality Trust 600,000 3.158% due 15/05/35 ....... 602 0.04
Asset Backed Securities Corp Home Equity Loan Trust
514,522 3.086% due 25/03/35 ....... 511 0.03
Asset-Backed Pass-Through Certificates
207,392 2.936% due 25/04/35 ....... 208 0.01 AT&T Inc 700,000 2.989% due 15/01/20 ....... 703 0.04 900,000 3.071% due 01/06/21 ....... 908 0.05 800,000 3.200% due 01/03/22 ....... 789 0.05
AvalonBay Communities Inc 1,000,000 3.500% due 15/11/24 ....... 989 0.06 Aviation Capital Group LLC 900,000 3.013% due 30/07/21 ....... 904 0.05 600,000 4.125% due 01/08/25 ....... 590 0.04
Banc of America Funding Trust
1,301,379 4.592% due 20/07/36 ....... 1,346 0.08 123,957 3.752% due 20/10/46 ....... 100 0.01 148,130 3.929% due 20/01/47 ....... 142 0.01
Banc of America Mortgage Trust
167,745 4.030% due 25/05/35 ....... 167 0.01 Bank of America Corp 1,700,000 3.007% due 21/07/21 ....... 1,710 0.10 1,000,000 3.499% due 17/05/22 ....... 1,000 0.06 800,000 3.300% due 11/01/23 ....... 789 0.05 700,000 4.100% due 24/07/23 ....... 714 0.04 700,000 4.125% due 22/01/24 ....... 712 0.04 800,000 3.864% due 23/07/24 ....... 801 0.05
Basin Electric Power Cooperative
750,000 4.750% due 26/04/47 ....... 761 0.05 BAT Capital Corp 600,000 2.297% due 14/08/20 ....... 588 0.04 600,000 2.909% due 14/08/20 ....... 602 0.04 700,000 2.764% due 15/08/22 ....... 675 0.04
Bay Area Toll Authority 635,000 6.263% due 01/04/49 ....... 869 0.05 Bayer US Finance II LLC 900,000 3.500% due 25/06/21 ....... 898 0.05 1,100,000 2.750% due 15/07/21 ....... 1,073 0.06 900,000 3.344% due 15/12/23 ....... 902 0.05
Bayview Commercial Asset Trust
767,159 2.646% due 25/08/34 ....... 763 0.05 1,833,700 2.486% due 25/07/37 ....... 1,773 0.11
Principal Amount
Fair Value USD ‘000
Fund %
BBCMS Mortgage Trust 1,074,000 5.008% due 15/11/34 ...... 1,075 0.06 BCAP LLC Trust 2,037,177 2.203% due 26/07/36 ...... 1,946 0.12 1,962,256 2.487% due 26/01/47 ...... 150 0.01
Bear Stearns Adjustable Rate Mortgage Trust
45,353 4.168% due 25/05/34 ...... 44 0.00 457,057 3.962% due 25/05/47 ...... 414 0.02 Bear Stearns Alt-A Trust 239,235 4.187% due 25/09/35 ...... 196 0.01 143,043 3.800% due 25/11/35 ...... 125 0.01 1,096,713 3.851% due 25/01/36 ...... 1,099 0.07 536,793 3.907% due 25/08/36 ...... 417 0.03 109,948 4.167% due 25/08/36 ...... 75 0.00 399,983 3.927% due 25/11/36 ...... 337 0.02
Bear Stearns ARM Trust 918 4.116% due 25/08/33 ...... 1 0.00
Bear Stearns Asset Backed Securities I Trust
262,726 2.326% due 25/04/31 ...... 359 0.02 600,080 3.341% due 25/02/35 ...... 603 0.04
Bear Stearns Mortgage Securities Inc
79 4.124% due 25/06/30 ...... - 0.00
Bear Stearns Structured Products Inc
406,606 4.106% due 26/01/36 ...... 358 0.02 640,064 3.531% due 26/12/46 ...... 583 0.03 BMW US Capital LLC 2,900,000 2.788% due 06/04/20 ...... 2,908 0.17 1,000,000 2.747% due 12/04/21 ...... 1,004 0.06 750,000 2.819% due 13/08/21 ...... 753 0.04
Brambles USA Inc 500,000 4.125% due 23/10/25 ...... 495 0.03
Brixmor Operating Partnership LP
800,000 3.650% due 15/06/24 ...... 770 0.05
BX Commercial Mortgage Trust
1,600,000 3.279% due 15/03/37 ...... 1,603 0.10 C-BASS Trust
638,112 2.286% due 25/01/37 ...... 298 0.02
Capital One Multi-Asset Execution Trust
900,000 2.538% due 18/01/22 ...... 901 0.05 700,000 2.608% due 15/02/22 ...... 702 0.04 4,370,000 1.340% due 15/04/22 ...... 4,328 0.26
Caterpillar Financial Services Corp
2,500,000 2.564% due 15/03/21 ...... 2,505 0.15 2,075,000 1.931% due 01/10/21 ...... 1,996 0.12
915,000 2.150% due 15/07/21 ....... 911 0.05 3,115,000 1.800% due 20/09/21 ....... 3,085 0.18 2,290,000 1.920% due 07/04/22 ....... 2,254 0.13 Citibank NA 600,000 2.850% due 12/02/21 ....... 594 0.04 3,950,000 2.917% due 23/07/21 ....... 3,973 0.24
Citicorp Mortgage Securities Trust
1,329 6.000% due 25/04/37 ....... 1 0.00
Citigroup Commercial Mortgage Trust
700,000 3.008% due 15/07/32 ....... 701 0.04 Citigroup Inc 3,571,000 3.397% due 08/12/21 ....... 3,635 0.22 800,000 2.750% due 25/04/22 ....... 777 0.05 800,000 2.700% due 27/10/22 ....... 770 0.05 800,000 2.876% due 24/07/23 ....... 774 0.05 800,000 3.344% due 01/06/24 ....... 804 0.05
Citigroup Mortgage Loan Trust Inc
800,000 3.161% due 25/10/34 ....... 808 0.05 40,933 4.240% due 25/09/35 ....... 42 0.00 2,077,000 2.486% due 25/08/36 ....... 2,054 0.12 2,889,877 3.780% due 25/08/36 ....... 2,851 0.17 287,164 4.186% due 25/09/37 ....... 278 0.02
City of Chicago IL 800,000 7.045% due 01/01/29 ....... 856 0.05
Principal Amount
Fair Value USD ‘000
Fund %
Cold Storage Trust 1,520,000 4.258% due 15/04/36 ...... 1,531 0.09
ConocoPhillips Co 4,675,000 3.214% due 15/05/22 ...... 4,769 0.28
Consolidated Edison Co of New York Inc
800,000 2.773% due 25/06/21 ...... 805 0.05 Constellation Brands Inc
600,000 2.650% due 07/11/22 ...... 574 0.03
Countrywide Asset-Backed Certificates
113,288 5.505% due 25/04/36 ...... 113 0.01 130,237 5.588% due 25/08/36 ...... 130 0.01 1,001,623 5.794% due 25/08/36 ...... 1,003 0.06 587,784 2.346% due 25/12/36 ...... 542 0.03 380,131 2.556% due 25/12/36 ...... 212 0.01
Credit Acceptance Auto Loan Trust
1,000,000 3.470% due 17/05/27 ...... 1,000 0.06
Credit Suisse First Boston Mortgage Securities Corp
23 4.205% due 25/08/33 ...... - 0.00
Crown Castle International Corp
500,000 3.400% due 15/02/21 ...... 499 0.03 800,000 3.700% due 15/06/26 ...... 766 0.05
CS Mortgage Securities 462,348 4.500% due 25/03/21 ...... 468 0.03
CSAB Mortgage-Backed Trust
354,348 6.172% due 25/06/36 ...... 160 0.01 CSMC Trust
193,760 6.500% due 26/07/36 ...... 105 0.01 CVS Health Corp 600,000 2.750% due 01/12/22 ...... 579 0.03 510,000 4.780% due 25/03/38 ...... 509 0.03
CWABS Asset-Backed Certificates Trust
1,501,675 2.376% due 25/09/46 ...... 1,482 0.09
CWHEQ Revolving Home Equity Loan Resuritization Trust
2,051,961 2.458% due 15/12/33 ...... 2,056 0.12 310,020 2.438% due 15/02/34 ...... 309 0.02 402,458 2.338% due 15/07/35 ...... 403 0.02 1,298,264 2.348% due 15/11/35 ...... 1,300 0.08
CWHEQ Revolving Home Equity Loan Trust
1,180,756 2.298% due 15/07/36 ...... 1,123 0.07 1,223,084 2.298% due 15/01/37 ...... 1,165 0.07
Daimler Finance North America LLC
800,000 3.100% due 04/05/20 ...... 798 0.05 1,700,000 2.768% due 12/02/21 ...... 1,702 0.10
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 61
Principal Amount
Fair Value USD ‘000
Fund %
Dell International LLC 700,000 4.420% due 15/06/21 ....... 711 0.04 439,000 7.125% due 15/06/24 ....... 471 0.03
Deutsche Alt-A Securities Mortgage Loan Trust
740,337 2.416% due 25/08/47 ....... 709 0.04 Dominion Energy Inc
1,000,000 2.914% due 15/05/20 ....... 1,000 0.06 Elanco Animal Health Inc 134,000 4.272% due 28/08/23 ....... 135 0.01 173,000 4.900% due 28/08/28 ....... 176 0.01
Enable Midstream Partners LP
1,718,000 4.400% due 15/03/27 ....... 1,652 0.10
Encore Credit Receivables Trust
28,720 2.951% due 25/10/35 ....... 29 0.00 Energy Transfer Partners LP 600,000 4.650% due 01/06/21 ....... 615 0.04 800,000 4.500% due 01/11/23 ....... 812 0.05
EnLink Midstream Partners LP
1,730,000 4.850% due 15/07/26 ....... 1,680 0.10
Enterprise Products Operating LLC
800,000 5.200% due 01/09/20 ....... 829 0.05 Eversource Energy
900,000 2.750% due 15/03/22 ....... 882 0.05
Fannie Mae Connecticut Avenue Securities
2,291,486 7.116% due 25/11/24 ....... 2,626 0.16 Fannie Mae Grantor Trust
55,392 6.000% due 25/02/44 ....... 60 0.00 Fannie Mae Pool 48,713 3.130% due 01/12/34 ....... 51 0.00 107,929 3.481% due 01/02/35 ....... 113 0.01 646,365 3.000% due 01/06/42 ....... 625 0.04 111,902 3.044% due 01/11/42 ....... 111 0.01 29,105 2.500% due 01/04/43 ....... 27 0.00 167,942 3.044% due 01/06/43 ....... 167 0.01 104,607 3.044% due 01/10/44 ....... 104 0.01 876,458 2.500% due 01/04/45 ....... 812 0.05 28,423 2.500% due 01/04/45 ....... 26 0.00 7,000,000 4.500% due 15/10/46 ....... 7,222 0.43 8,000,000 5.500% due 15/10/46 ....... 8,538 0.51 28,000,000 3.000% due 15/11/46 ....... 26,765 1.59 81,500,000 3.500% due 15/11/46 ....... 80,119 4.76 11,000,000 4.000% due 15/11/46 ....... 11,094 0.66
Fannie Mae REMIC Trust 128,514 6.000% due 25/07/44 ....... 141 0.01 Fannie Mae REMICS 113,446 6.000% due 25/06/33 ....... 21 0.00 74,399 3.914% due 25/05/35 ....... 78 0.00
Principal Amount
Fair Value USD ‘000
Fund %
7,118 6.000% due 25/04/43 ...... 8 0.00 Fannie Mae Trust 384 2.616% due 25/09/32 ...... - 0.00 126,768 2.415% due 25/09/42 ...... 126 0.01
Fannie Mae-Aces 480,444 2.816% due 25/11/20 ...... 481 0.03
First Frankin Mortgage Loan Trust
695,639 2.951% due 25/09/35 ...... 700 0.04
First Horizon Alternative Mortgage Securities Trust
1,233,832 2.866% due 25/11/35 ...... 950 0.06 514,724 2.916% due 25/12/35 ...... 398 0.02
First Horizon Mortgage Pass-Through Trust
366,996 4.024% due 25/05/37 ...... 304 0.02 First NLC Trust
379,718 2.286% due 25/08/37 ...... 234 0.01 FirstEnergy Corp
600,000 2.850% due 15/07/22 ...... 581 0.03
Ford Credit Auto Owner Trust
423,047 2.228% due 15/05/20 ...... 423 0.03 2,732,857 1.800% due 15/09/20 ...... 2,728 0.16 1,275,000 2.590% due 15/02/21 ...... 1,276 0.08 5,550,000 4.000% due 15/10/46 ...... 5,605 0.33 2,800,000 4.500% due 15/10/46 ...... 2,890 0.17 7,000,000 5.000% due 15/10/46 ...... 7,351 0.44
Freddie Mac Multifamily Structured Pass Through Certificates
853,981 2.814% due 25/09/22 ...... 858 0.05
Freddie Mac Reference REMIC
182,489 6.000% due 15/04/36 ...... 200 0.01
Freddie Mac Structured Agency Credit Risk Debt Notes
902,000 5.966% due 25/09/24 ...... 1,036 0.06 1,577,392 6.966% due 25/10/24 ...... 1,751 0.10 1,369,435 6.366% due 25/01/25 ...... 1,471 0.09 537,409 4.816% due 25/12/27 ...... 549 0.03 1,315,000 6.916% due 25/04/28 ...... 1,572 0.09
Freddie Mac Structured Pass-Through Certificates
319,383 3.045% due 25/10/44 ...... 318 0.02 General Mills Inc 317,000 4.550% due 17/04/38 ...... 305 0.02 317,000 4.700% due 17/04/48 ...... 305 0.02
General Motors Financial Co Inc
900,000 3.200% due 13/07/20 ...... 898 0.05 800,000 2.450% due 06/11/20 ...... 784 0.05 Ginnie Mae II Pool 18,779 2.750% due 20/09/25 ...... 19 0.00
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 62 Russell Investments Global Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
15,103 3.125% due 20/10/26 ....... 16 0.00 6,000,000 4.000% due 15/10/46 ....... 6,102 0.36 6,500,000 4.500% due 15/10/46 ....... 6,718 0.40
GMACM Home Equity Loan Trust
532,111 5.750% due 25/10/36 ....... 539 0.03
GMACM Mortgage Loan Trust
50,936 3.939% due 19/11/35 ....... 49 0.00 Goldman Sachs Group Inc 975,000 3.134% due 13/12/19 ....... 982 0.06 800,000 3.060% due 23/02/23 ....... 804 0.05
Government National Mortgage Association
607,652 2.560% due 20/06/65 ....... 609 0.04 2,315,737 2.680% due 20/07/65 ....... 2,331 0.14 589,853 2.680% due 20/07/65 ....... 594 0.04 1,204,245 3.000% due 20/07/65 ....... 1,227 0.07 1,314,973 2.600% due 20/10/65 ....... 1,323 0.08 1,229,629 2.830% due 20/12/65 ....... 1,246 0.07 679,752 3.080% due 20/01/66 ....... 696 0.04 1,269,251 2.930% due 20/04/66 ....... 1,292 0.08 591,590 2.540% due 20/02/67 ....... 593 0.04 1,325,000 4.182% due 21/08/31 ....... 1,338 0.08
GreenPoint MTA Trust 576,059 2.456% due 25/08/45 ....... 548 0.03
GS Mortgage Securities Corp Trust
731,000 4.508% due 15/02/37 ....... 738 0.04 1,603,000 5.458% due 15/02/37 ....... 1,608 0.10 GSAA Home Equity Trust 1,377,401 2.386% due 25/09/36 ....... 643 0.04 268,693 2.516% due 25/03/37 ....... 169 0.01 GSAMP Trust 649,776 2.966% due 25/01/34 ....... 642 0.04 818,359 2.656% due 25/11/35 ....... 822 0.05 746,333 2.486% due 25/03/47 ....... 679 0.04 GSR Mortgage Loan Trust 96 6.000% due 25/03/32 ....... - 0.00 1,610 3.830% due 25/03/33 ....... 2 0.00 74,472 3.902% due 25/09/35 ....... 76 0.00 117,331 3.750% due 25/01/36 ....... 117 0.01
Halfmoon Parent Inc 730,000 4.900% due 15/12/48 ....... 728 0.04
Harley-Davidson Financial Services Inc
800,000 3.550% due 21/05/21 ....... 797 0.05 HCA Inc 100,000 6.500% due 15/02/20 ....... 104 0.01 600,000 5.375% due 01/09/26 ....... 608 0.04
Herc Rentals Inc 226,000 7.750% due 01/06/24 ....... 244 0.01
Principal Amount
Fair Value USD ‘000
Fund %
Hilton USA Trust 2,160,000 4.194% due 05/11/38 ...... 2,116 0.13 1,100,000 4.194% due 05/11/38 ...... 1,042 0.06
HMH Trust 1,832,000 6.292% due 05/07/31 ...... 1,766 0.11 Home Equity Asset Trust 1,600,000 2.626% due 25/04/36 ...... 1,592 0.09 2,110,000 2.606% due 25/07/36 ...... 2,098 0.12 1,408,067 2.496% due 25/08/36 ...... 1,404 0.08
Home Equity Mortgage Loan Asset-Backed Trust
1,192,813 2.376% due 25/07/37 ...... 786 0.05
Home Equity Mortgage Trust
242,726 6.000% due 25/01/37 ...... 128 0.01
Honda Auto Receivables Owner Trust
704,739 1.460% due 15/10/19 ...... 704 0.04 322,205 1.800% due 21/01/20 ...... 321 0.02 569,878 2.300% due 15/06/20 ...... 569 0.03 1,700,000 2.670% due 21/12/20 ...... 1,699 0.10
Honeywell International Inc 1,900,000 1.850% due 01/11/21 ...... 1,829 0.11
Hospitality Properties Trust 1,760,000 3.950% due 15/01/28 ...... 1,597 0.10
Howard University 475,000 2.200% due 01/08/31 ...... 475 0.03 Hyatt Hotel Portfolio Trust 1,248,000 4.013% due 09/08/32 ...... 1,251 0.07 648,000 5.209% due 09/08/32 ...... 653 0.04
IBM Credit LLC 500,000 2.608% due 20/01/21 ...... 503 0.03
IndyMac INDA Mortgage Loan Trust
936,864 4.407% due 25/07/37 ...... 863 0.05
IndyMac INDX Mortgage Loan Trust
385,201 2.456% due 25/06/37 ...... 383 0.02
Inter-American Development Bank
529,000 2.125% due 15/01/25 ...... 499 0.03
International Bank for Reconstruction & Development
520,000 2.500% due 29/07/25 ...... 500 0.03 EUR 1,900,000 1.200% due 08/08/34 ...... 2,203 0.13 Interpublic Group of Cos Inc USD 1,980,000 3.750% due 01/10/21 ...... 1,985 0.12
Iowa Tobacco Settlement Authority
130,000 6.500% due 01/06/23 ...... 132 0.01 ITC Holdings Corp
600,000 2.700% due 15/11/22 ...... 576 0.03
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 63
Principal Amount
Fair Value USD ‘000
Fund %
IXIS Real Estate Capital Trust
408,901 2.616% due 25/03/36 ....... 278 0.02 1,110,773 2.816% due 25/03/36 ....... 760 0.05 1,250,199 2.376% due 25/08/36 ....... 519 0.03 1,414,831 2.476% due 25/08/36 ....... 592 0.04
Jackson National Life Global Funding
900,000 2.811% due 11/06/21 ....... 905 0.05 JBS USA LUX SA
343,000 7.250% due 01/06/21 ....... 350 0.02 Jefferies Group LLC 2,000,000 4.850% due 15/01/27 ....... 1,970 0.12 2,280,000 4.150% due 23/01/30 ....... 2,053 0.12 John Deere Capital Corp 1,870,000 2.656% due 22/06/20 ....... 1,874 0.11 865,000 2.350% due 08/01/21 ....... 850 0.05 1,955,000 2.807% due 08/09/22 ....... 1,958 0.12
Johnson & Johnson 1,000,000 2.250% due 03/03/22 ....... 977 0.06
JP Morgan Alternative Loan Trust
84 5.500% due 25/11/36 ....... - 0.00
JP Morgan Chase Commercial Mortgage Securities Trust
600,000 3.158% due 15/06/32 ....... 602 0.04 JP Morgan Mortgage Trust 125,181 4.112% due 25/07/35 ....... 129 0.01 665,548 7.000% due 25/08/37 ....... 577 0.03
JPMBB Commercial Mortgage Securities Trust
1,000,000 3.358% due 15/11/48 ....... 997 0.06 JPMorgan Chase & Co 800,000 2.550% due 29/10/20 ....... 789 0.05 1,500,000 3.801% due 01/03/21 ....... 1,540 0.09 900,000 3.514% due 18/06/22 ....... 901 0.05 700,000 3.237% due 23/07/24 ....... 703 0.04 JPMorgan Chase Bank NA 1,000,000 2.588% due 13/02/20 ....... 1,001 0.06 900,000 3.086% due 26/04/21 ....... 898 0.05 Keurig Dr Pepper Inc 700,000 3.551% due 25/05/21 ....... 699 0.04 800,000 4.057% due 25/05/23 ....... 802 0.05 1,080,000 4.597% due 25/05/28 ....... 1,087 0.06 370,000 4.985% due 25/05/38 ....... 376 0.02
Kraft Heinz Foods Co 900,000 3.500% due 15/07/22 ....... 894 0.05
LB-UBS Commercial Mortgage Trust
112,484 6.114% due 15/07/40 ....... 112 0.01
Lehman ABS Manufactured Housing Contract Trust
24,150 5.270% due 15/04/40 ....... 24 0.00
Principal Amount
Fair Value USD ‘000
Fund %
1,160,000 6.630% due 15/04/40 ...... 1,232 0.07 200,628 2.366% due 25/04/37 ...... 191 0.01 1,281,039 2.406% due 25/11/46 ...... 1,261 0.08 692,572 2.595% due 25/03/47 ...... 678 0.04
Long Beach Mortgage Loan Trust
658,710 3.236% due 25/08/33 ...... 663 0.04 674,068 2.966% due 25/02/34 ...... 677 0.04
Los Angeles County Public Works Financing Authority
130,000 7.488% due 01/08/33 ...... 169 0.01
LP Credit Card ABS Master Trust
900,000 3.625% due 20/08/24 ...... 900 0.05 Marathon Oil Corp
800,000 2.700% due 01/06/20 ...... 790 0.05 Marathon Petroleum Corp
651,000 3.400% due 15/12/20 ...... 652 0.04 Masco Corp
600,000 3.500% due 01/04/21 ...... 600 0.04
MASTR Adjustable Rate Mortgages Trust
127,773 2.456% due 25/05/37 ...... 80 0.00
Mastr Asset Backed Securities Trust
923,000 3.161% due 25/03/35 ...... 932 0.06 1,103,468 2.376% due 25/11/36 ...... 784 0.05
McDonald's Corp 800,000 2.769% due 28/10/21 ...... 802 0.05
Merrill Lynch Mortgage Investors Trust
3,059 4.100% due 25/02/33 ...... 3 0.00 281,358 4.097% due 25/02/36 ...... 283 0.02 1,360,000 2.586% due 25/08/36 ...... 1,353 0.08 835,573 2.816% due 25/09/36 ...... 822 0.05
MGM Resorts International 300,000 6.750% due 01/10/20 ...... 316 0.02
Microchip Technology Inc 400,000 3.922% due 01/06/21 ...... 398 0.02
Mid-State Capital Corp Trust 770,163 6.497% due 15/08/37 ...... 838 0.05
Molson Coors Brewing Co 1,000,000 2.100% due 15/07/21 ...... 962 0.06 Morgan Stanley 1,191,000 2.891% due 10/02/21 ...... 1,195 0.07 2,796,000 3.747% due 21/04/21 ...... 2,867 0.17
Morgan Stanley Capital I Trust
2,108,000 4.108% due 15/06/35 ...... 2,116 0.13 2,607,000 4.108% due 15/07/35 ...... 2,614 0.16 856,196 5.574% due 12/11/49 ...... 866 0.05
Morgan Stanley Mortgage Loan Trust
374,198 5.726% due 25/10/36 ...... 199 0.01
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 64 Russell Investments Global Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
270,989 2.576% due 25/04/37 ....... 138 0.01
Morgan Stanley Resecuritization Trust
1,602,000 2.585% due 26/04/47 ....... 1,346 0.08
MortgageIT Mortgage Loan Trust
582,221 2.446% due 25/04/36 ....... 555 0.03
MRFC Mortgage Pass-Through Trust
738,923 3.018% due 15/08/32 ....... 716 0.04 MSSG Trust
3,040,000 3.865% due 13/09/39 ....... 2,782 0.17
Municipal Electric Authority of Georgia
200,000 6.655% due 01/04/57 ....... 237 0.01
National Rural Utilities Cooperative Finance Corp
800,000 2.771% due 30/06/21 ....... 802 0.05
Nationstar Home Equity Loan Trust
2,860,000 2.546% due 25/09/36 ....... 2,778 0.17 Navient Corp 100,000 8.000% due 25/03/20 ....... 106 0.01 200,000 5.875% due 25/03/21 ....... 205 0.01
328,533 2.516% due 26/07/66 ....... 329 0.02 Nestle Holdings Inc
1,085,000 1.875% due 09/03/21 ....... 1,054 0.06
New Century Home Equity Loan Trust
2,120,000 2.696% due 25/10/35 ....... 2,070 0.12
New York City Water & Sewer System
660,000 5.882% due 15/06/44 ....... 840 0.05
Newcastle Mortgage Securities Trust
3,010,000 2.606% due 25/03/36 ....... 2,948 0.18 Newfield Exploration Co
1,039,000 5.625% due 01/07/24 ....... 1,100 0.07
NextEra Energy Capital Holdings Inc
900,000 3.342% due 01/09/20 ....... 902 0.05
Nissan Auto Receivables Owner Trust
495,672 2.248% due 15/12/20 ....... 496 0.03 495,672 2.390% due 15/12/20 ....... 495 0.03
Nissan Motor Acceptance Corp
700,000 3.227% due 13/01/22 ....... 708 0.04 Noble Energy Inc
2,443,000 3.850% due 15/01/28 ....... 2,312 0.14
Principal Amount
Fair Value USD ‘000
Fund %
Nomura Asset Acceptance Corp Alternative Loan Trust
1,271,218 3.316% due 25/12/34 ...... 1,272 0.08 167,703 4.204% due 25/10/35 ...... 167 0.01
Nomura Resecuritization Trust
1,790,000 2.215% due 26/10/36 ...... 1,718 0.10 587,977 2.225% due 26/10/36 ...... 584 0.03 463,836 3.811% due 26/03/37 ...... 470 0.03 1,272,707 2.737% due 26/06/46 ...... 1,261 0.08 603,870 2.517% due 26/04/47 ...... 590 0.04
Norfolk Southern Corp 900,000 3.000% due 01/04/22 ...... 886 0.05
Novartis Capital Corp 2,640,000 1.800% due 14/02/20 ...... 2,603 0.15
NovaStar Mortgage Funding Trust Series
693,291 2.421% due 25/09/46 ...... 338 0.02 One Market Plaza Trust 1,305,000 4.142% due 10/02/32 ...... 1,241 0.07 525,000 4.146% due 10/02/32 ...... 516 0.03
OneMain Financial Issuance Trust
700,000 2.370% due 14/09/32 ...... 688 0.04
Option One Mortgage Loan Trust
1,026,850 2.436% due 25/04/37 ...... 812 0.05 PACCAR Financial Corp
1,000,000 2.800% due 01/03/21 ...... 990 0.06 Pacific Gas & Electric Co
700,000 4.250% due 01/08/23 ...... 704 0.04 Park Place Securities Inc
1,240,000 2.686% due 25/09/35 ...... 1,243 0.07 Phillips 66
850,000 4.875% due 15/11/44 ...... 884 0.05 Procter & Gamble Co
4,130,000 2.613% due 01/11/19 ...... 4,142 0.25 Public Storage
800,000 3.094% due 15/09/27 ...... 749 0.04 RALI Trust 1,931,458 2.376% due 25/01/37 ...... 1,868 0.11 249,358 2.396% due 25/06/46 ...... 115 0.01 RAMP Trust 1,965,000 2.436% due 25/12/36 ...... 1,912 0.11 2,627,000 2.466% due 25/02/37 ...... 2,564 0.15
Residential Asset Securitization Trust
97,472 2.666% due 25/04/35 ...... 79 0.00 RFMSI Trust 117,365 4.420% due 25/09/35 ...... 100 0.01 96,914 4.631% due 25/02/36 ...... 88 0.01
Rib Floater Trust Various States
1,700,000 2.630% due 15/08/22 ...... 1,700 0.10
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 65
Principal Amount
Fair Value USD ‘000
Fund %
Rio Oil Finance Trust 700,000 8.200% due 06/04/28 ....... 718 0.04
Rockwell Collins Inc 800,000 2.800% due 15/03/22 ....... 779 0.05
Ryder System Inc 600,000 2.500% due 01/09/22 ....... 575 0.03
Sabine Pass Liquefaction LLC
800,000 5.625% due 01/02/21 ....... 833 0.05 SACO I Trust 399,455 2.576% due 25/08/30 ....... 390 0.02 235,155 2.876% due 25/01/36 ....... 236 0.01
Santander Drive Auto Receivables Trust
921,361 2.650% due 17/08/20 ....... 921 0.05 Santander Holdings USA Inc
814,103 2.526% due 25/09/36 ...... 815 0.05 1,023,316 2.386% due 25/12/36 ...... 1,003 0.06 1,879,602 2.386% due 25/01/37 ...... 1,847 0.11 1,733,304 2.346% due 25/02/37 ...... 1,712 0.10
Taxable Municipal Funding Trust
3,000,000 2.630% due 31/07/28 ...... 3,000 0.18
Tender Option Bond Trust Receipts/Certificates
4,200,000 Zero Coupon due 29/10/27 4,200 0.25
4,095,000 Zero Coupon due 01/08/49 ......................................... 4,095 0.24
Terwin Mortgage Trust 391,259 2.906% due 25/07/35 ...... 393 0.02 71,407 4.158% due 25/06/47 ...... 66 0.00 Towd Point Mortgage Trust 501,161 2.750% due 25/06/57 ...... 489 0.03 953,442 2.750% due 25/07/57 ...... 933 0.06
Toyota Auto Receivables Owner Trust
635,597 1.250% due 16/03/20 ...... 633 0.04 690,521 1.140% due 17/08/20 ...... 686 0.04 2,726,379 1.740% due 17/08/20 ...... 2,716 0.16 Toyota Motor Credit Corp 3,100,000 2.459% due 14/11/19 ...... 3,103 0.18 3,000,000 2.810% due 11/01/23 ...... 3,004 0.18
Triton Container Finance IV LLC
978,633 3.620% due 20/08/42 ...... 958 0.06
Triton Container Finance V LLC
1,900,000 3.950% due 20/03/43 ...... 1,880 0.11
Triton Container Finance VI LLC
417,925 3.520% due 20/06/42 ...... 407 0.02 U.S. Treasury Bonds 1,549,000 5.500% due 15/08/28 ...... 1,870 0.11 7,799,000 5.375% due 15/02/31 ...... 9,640 0.57 4,510,000 4.500% due 15/02/36 ...... 5,353 0.32 550,000 5.000% due 15/05/37 ...... 696 0.04 2,312,000 3.500% due 15/02/39 ...... 2,436 0.15 4,319,000 4.250% due 15/05/39 ...... 5,038 0.30 200,000 4.375% due 15/05/40 ...... 238 0.01 2,378,000 2.750% due 15/08/42 ...... 2,203 0.13
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 66 Russell Investments Global Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
796,000 2.750% due 15/11/42 ....... 737 0.04 360,000 2.875% due 15/05/43 ....... 340 0.02 3,680,000 3.000% due 15/11/44 ....... 3,553 0.21 710,000 2.500% due 15/05/46 ....... 619 0.04 1,131,100 2.750% due 15/11/47 ....... 1,036 0.06 7,450,000 3.000% due 15/08/48 ....... 7,171 0.43
U.S. Treasury Inflation Indexed Bonds
5,412,833 0.125% due 15/04/20 ....... 5,343 0.32 6,601,017 1.125% due 15/01/21 ....... 6,641 0.39 7,101,780 0.625% due 15/04/23 ....... 7,012 0.42 5,594,555 0.625% due 15/01/24 ....... 5,521 0.33 5,862,420 0.250% due 15/01/25 ....... 5,627 0.33 13,957,101 0.625% due 15/01/26 ....... 13,662 0.81 12,406,210 0.375% due 15/01/27** ... 11,849 0.70 5,196,787 2.125% due 15/02/41 ....... 6,334 0.38 8,621,125 1.375% due 15/02/44 ....... 9,253 0.55 313,188 0.875% due 15/02/47 ....... 300 0.02 U.S. Treasury Notes 12,270,000 2.000% due 30/11/20 ....... 12,055 0.72 3,900,000 1.875% due 31/07/22 ....... 3,753 0.22 9,300,000 1.875% due 31/08/22 ....... 8,940 0.53 1,000,000 2.000% due 31/10/22 ....... 964 0.06 1,957,700 2.750% due 30/04/23 ....... 1,942 0.12 13,437,700 2.750% due 31/05/23 ....... 13,329 0.79 15,070,000 2.125% due 30/09/24 ....... 14,361 0.85 19,977,000 1.500% due 15/08/26 ....... 17,838 1.06 8,281,000 2.250% due 15/11/27 ....... 7,752 0.46 20,400,000 2.750% due 15/02/28 ....... 19,893 1.18 3,017,500 2.875% due 15/05/28 ....... 2,972 0.18
Unilever Capital Corp 2,450,000 3.000% due 07/03/22 ....... 2,427 0.14
United States Small Business Administration
72,275 6.290% due 01/01/21 ....... 74 0.00 United Technologies Corp
500,000 3.100% due 01/06/22 ....... 493 0.03 US Bank NA 3,800,000 2.662% due 24/01/20 ....... 3,810 0.23 2,000,000 2.487% due 23/10/20 ....... 2,000 0.12 500,000 2.655% due 26/04/21 ....... 502 0.03
Utah State Board of Regents 641,766 2.966% due 25/01/57 ....... 643 0.04
Verizon Communications Inc
2,445,000 2.860% due 22/05/20 ....... 2,460 0.15 VMware Inc
400,000 2.300% due 21/08/20 ....... 392 0.02 VOLT LXI LLC
446,801 3.125% due 25/06/47 ....... 444 0.03
Principal Amount
Fair Value USD ‘000
Fund %
VOLT LXII LLC 298,020 4.625% due 25/09/47 ...... 295 0.02
VOLT LXIII LLC 231,250 4.625% due 25/10/47 ...... 230 0.01
Voya Financial Inc 1,320,000 5.650% due 15/05/53 ...... 1,333 0.08
Wachovia Mortgage Loan Trust LLC
64,531 4.243% due 20/03/37 ...... 63 0.00
Waldorf Astoria Boca Raton Trust
2,140,000 6.508% due 15/06/29 ...... 2,151 0.13 Walmart Inc
930,000 2.596% due 23/06/21 ...... 935 0.06 Walt Disney Co
4,000,000 2.506% due 05/06/20 ...... 4,009 0.24
WaMu Asset-Backed Certificates
1,388,305 2.466% due 25/04/37 ...... 757 0.05
WaMu Mortgage Pass Through Certificates
75,075 3.864% due 25/09/36 ...... 73 0.00 1,084,432 3.864% due 25/09/36 ...... 1,054 0.06 1,578,812 3.268% due 25/12/36 ...... 1,541 0.09 2,074,432 2.901% due 25/01/37 ...... 1,969 0.12
Washington Mutual Mortgage Pass-Through Certificates
194,303 6.268% due 25/07/36 ...... 81 0.00 1,203,992 2.316% due 25/06/37 ...... 1,091 0.07
Wells Fargo & Co 3,000,000 3.661% due 04/03/21 ...... 3,069 0.18 Wells Fargo Bank NA 2,250,000 2.649% due 15/01/21 ...... 2,257 0.13 2,368,000 2.847% due 23/07/21 ...... 2,374 0.14 800,000 3.325% due 23/07/21 ...... 799 0.05 900,000 3.550% due 14/08/23 ...... 895 0.05
Wells Fargo Mortgage Backed Securities Trust
349,726 4.427% due 25/09/34 ...... 360 0.02 323,625 4.467% due 25/03/35 ...... 330 0.02 366,324 4.213% due 25/06/35 ...... 379 0.02 565,344 4.261% due 25/06/35 ...... 581 0.03 1,550,130 4.192% due 25/04/36 ...... 1,570 0.09 432,344 4.323% due 25/05/36 ...... 444 0.03 373,754 4.704% due 25/09/36 ...... 377 0.02
Welltower Inc 200,000 4.250% due 15/04/28 ...... 197 0.01
Westlake Automobile Receivables Trust
57,379 1.780% due 15/04/20 ...... 57 0.00
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 67
Principal Amount
Fair Value USD ‘000
Fund %
World Omni Auto Receivables Trust
800,000 2.570% due 15/07/21 ....... 799 0.05 Wyndham Destinations Inc
450,000 4.500% due 01/04/27 ....... 425 0.03 813,677 48.35 Virgin Islands, British (0.13%)
CMHI Finance BVI Co Ltd 2,200,000 4.375% due 06/08/23 ....... 2,195 0.13
Total Long Term Bonds and Notes ............................ 1,558,352 92.60
Short Term Investments (8.98%) Argentina (0.09%)
Argentine Republic Government International Bond
1,500,000 6.250% due 22/04/19 ....... 1,506 0.09 Australia (0.12%)
National Australia Bank Ltd 2,000,000 2.590% due 14/05/19 ....... 2,002 0.12 Bermuda (0.14%)
Novartis Securities Investment Ltd
2,345,000 5.125% due 10/02/19 ....... 2,365 0.14 Canada (0.20%)
Canadian Government Bond CAD 1,160,000 1.750% due 01/09/19 ....... 895 0.05 National Bank of Canada USD 1,000,000 3.172% due 14/12/18 ....... 1,002 0.06 Province of Quebec Canada
990,000 2.627% due 21/07/19 ....... 992 0.06 Royal Bank of Canada
112,476 2.375% due 25/01/19 ...... 112 0.01 U.S. Treasury Notes 9,284,000 1.500% due 31/12/18 ...... 9,268 0.55 20,497,000 1.625% due 31/08/19** .. 20,312 1.21
US Bancorp 865,000 2.735% due 25/04/19 ...... 866 0.05 68,648 4.08
Total Short Term Investments ........................ 151,182 8.98
Total Transferable Securities ........................... 1,709,534 101.58
Certificates of Deposit (1.90%) Canada (0.82%)
Bank of Nova Scotia 6,000,000 Zero Coupon due 30/12/19 5,995 0.35
Canadian Imperial Bank of Commerce
2,300,000 Zero Coupon due 29/05/19 2,298 0.14 3,000,000 2.800% due 04/05/20 ...... 3,000 0.18
National Bank of Canada 2,500,000 1.750% due 08/05/19 ...... 2,500 0.15 13,793 0.82 France (0.27%)
Credit Agricole Corporate & Investment Bank
4,500,000 Zero Coupon due 30/07/20 4,500 0.27 Japan (0.25%)
Sumitomo Mitsui Banking Corp
4,200,000 Zero Coupon due 15/05/19 4,196 0.25
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 69
Principal Amount
Fair Value USD ‘000
Fund %
Norway (0.19%) DNB Bank ASA
3,200,000 Zero Coupon due 10/02/20 3,198 0.19 Sweden (0.37%) Nordea Bank AB 3,300,000 Zero Coupon due 21/02/19 3,300 0.20 250,000 Zero Coupon due 10/04/19 250 0.01
Swedbank AB 2,700,000 Zero Coupon due 24/08/20 2,700 0.16 6,250 0.37
Total Certificates of Deposit ................................ 31,937 1.90
Commercial Paper (1.15%) Canada (0.30%)
PSP Capital Inc 5,000,000 Zero Coupon due 07/11/18 5,000 0.30 France (0.18%)
BPCE SA 500,000 Zero Coupon due 18/01/19 496 0.03
Sanofi 2,600,000 Zero Coupon due 21/11/18 2,590 0.15 3,086 0.18 Jersey, Channel Islands (0.10%)
Cancara Asset Securitisation Ltd
1,000,000 Zero Coupon due 23/10/18 998 0.06 600,000 Zero Coupon due 19/11/18 598 0.04 1,596 0.10 United Kingdom (0.08%)
HSBC Bank Plc 500,000 Zero Coupon due 10/04/19 500 0.03
Reckitt Benckiser Treasury Services Plc
900,000 Zero Coupon due 04/01/19 892 0.05 1,392 0.08 United States (0.49%)
Collateralized Commercial Paper Co LLC
2,500,000 Zero Coupon due 03/01/19 2,500 0.15 ENI Finance USA Inc 250,000 Zero Coupon due 29/10/18 249 0.01 450,000 Zero Coupon due 07/11/18 449 0.03 500,000 Zero Coupon due 06/12/18 498 0.03
Principal Amount
Fair Value USD ‘000
Fund %
ING US Funding LLC 3,200,000 Zero Coupon due 12/04/19 3,200 0.19
Old Line Funding LLC 400,000 Zero Coupon due 28/11/18 398 0.02
Sheffield Receivable Corp 1,000,000 Zero Coupon due 05/11/18 997 0.06 8,291 0.49 Total Commercial Paper .. 19,365 1.15 Money Market Instruments (1.37%) Japan (1.30%)
JPY Japan Treasury Discount Bill 2,110,000,000 Zero Coupon due 05/11/18 18,579 1.11
370,000,000 Zero Coupon due 19/11/18 3,258 0.19 21,837 1.30 Argentina (0.07%) Argentina Treasury Bill
USD 400,000 Zero Coupon due 11/01/19 395 0.02 800,000 Zero Coupon due 22/02/19 789 0.05 1,184 0.07
Total Money Market Instruments ....................... 23,021 1.37
Number of Shares
Fair Value USD ‘000
Fund %
Investment Funds (3.08%) Ireland (3.08%)
10,513,511
Insight Global Funds II plc - Insight Liquid ABS Fund .... 14,463 0.86
267
Russell Investment Company III plc Russell Investments Euro Liquidity Fund - Class R Roll-Up Shares ................ 307 0.02
183
Russell Investment Company III plc Russell Investments Sterling Liquidity Fund - Class R Roll-Up Shares ...... 241 0.01
35,693
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 36,761 2.19
Total Investment Funds .... 51,772 3.08
Total Investments excluding Financial Derivative Instruments ..... 1,835,629 109.08
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 70 Russell Investments Global Bond Fund
Financial Derivative Instruments ((0.09)%) Open Futures Contracts ((0.22)%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
4,135 103.38
40 of Canadian 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (31) 0.00
6,876 112.72
61 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (15) 0.00
11,395 146.09
78 of Euro-BTP Futures Long Futures Contracts Expiring December 2018 ................................. (176) (0.01)
6,760 105.62
32 of U.S. 2 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (16) 0.00
3,306 143.75
23 of U.S. Long Bond Futures Long Futures Contracts Expiring December 2018 ................................. (75) 0.00
10,146 158.53
64 of U.S. Ultra Bond Futures Long Futures Contracts Expiring December 2018 ................................. (272) (0.02)
2,826 70.64
40 of Australian 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (9) 0.00
5,422 1.32
41 of 10 Year Mini JGB Futures Long Futures Contracts Expiring December 2018 ................................. (4) 0.00
61,133 103.62
590 of Canadian 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (600) (0.04)
8,970 130.01
69 of Euro-Schatz Futures Long Futures Contracts Expiring December 2018 ................................. (12) 0.00
55,647 113.33
491 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (421) (0.03)
24,047 159.25
151 of Long Gilt Futures Long Futures Contracts Expiring December 2018 ................................. (232) (0.01)
99,270 1.32
75 of Japan 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (166) (0.01)
5,488 177.04
31 of Euro-Oat Futures Long Futures Contracts Expiring December 2018 ................................. (49) 0.00
46,407 152.66
304 of Euro-Bobl Futures Long Futures Contracts Expiring December 2018 ................................. (258) (0.02)
77,553 186.43
416 of Euro-Bund Futures Long Futures Contracts Expiring December 2018 ................................. (829) (0.05)
37,385 105.61
177 of U.S. 2 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (85) (0.01)
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 71
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
195,450 120.13
1627 of U.S. 10 Year Note Futures Long Futures Contracts Expiring December 2018 ................................... (2,193) (0.13)
67,068 144.23
465 of U.S. Long Bond Futures Long Futures Contracts Expiring December 2018 ................................. (1,736) (0.10)
5,774 128.32
45 of U.S. 10 Year Ultra Futures Long Futures Contracts Expiring December 2018 ................................. (104) (0.01)
481 160.43
3 of U.S. Ultra Bond Futures Long Futures Contracts Expiring December 2018 ................................. (18) 0.00
24,228 71.05
341 of Australian 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (219) (0.01)
4,259 70.99
60 of Australian 3 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (9) 0.00
2,809 112.37
25 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. 3 0.00
184 183.9
1 of Euro-Bund Futures Long Futures Contracts Expiring December 2018 ................................. 1 0.00
14,916 97.81
61 of 90 Day Euro Futures Long Futures Contracts Expiring March 2019 ...................................... (99) (0.01)
24,264 97.05
100 of 90 Day Euro Futures Long Futures Contracts Expiring September 2019 ................................ (34) 0.00
52,976 113.44
467 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (449) (0.03)
3,670 159.55
23 of Long Gilt Futures Long Futures Contracts Expiring December 2018 ................................. (42) 0.00
78,685 186.02
423 of Euro-Bund Futures Long Futures Contracts Expiring December 2018 ................................. (669) (0.04)
(13,261) (130.01)
102 of Euro-Schatz Futures Short Futures Contracts Expiring December 2018 ................................. 19 0.00
(73,356) (96.84)
303 of 90 Day Euro Futures Short Futures Contracts Expiring December 2020 ................................. 3 0.00
(10,173) (158.96)
64 of Long Gilt Futures Short Futures Contracts Expiring December 2018 ................................. 80 0.00
(2,646) (1.32)
2 of Japan 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 4 0.00
(16,958) (152.78)
111 of Euro-Bobl Futures Short Futures Contracts Expiring December 2018 ................................. 107 0.01
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 72 Russell Investments Global Bond Fund
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
(56,494) (185.84)
304 of Euro-Bund Futures Short Futures Contracts Expiring December 2018 ................................. 426 0.04
(16,516) (118.82)
139 of U.S. 10 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 5 0.00
(2,055) (205.49)
10 of Euro BUXL 30 Year Bond Short Futures Contracts Expiring December 2018 ................................. 30 0.00
(13,181) (127.98)
103 of U.S. 10 Year Ultra Futures Short Futures Contracts Expiring December 2018 ................................. 203 0.01
(7,413) (1.32)
56 of 10 Year Mini JGB Futures Short Futures Contracts Expiring December 2018 ................................. 14 0.00
(3,317) (103.64)
32 of Canadian 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 33 0.00
(8,320) (130.00)
64 of Euro-Schatz Futures Short Futures Contracts Expiring December 2018 ................................. 11 0.00
(26,618) (113.27)
235 of U.S. 5 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 186 0.01
(106,982) (159.20)
672 of Long Gilt Futures Short Futures Contracts Expiring December 2018 ................................. 1,000 0.07
(23,827) (1.32)
18 of Japan 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 42 0.00
(10,081) (152.75)
66 of Euro-Bobl Futures Short Futures Contracts Expiring December 2018 ................................. 62 0.00
(92,894) (186.53)
498 of Euro-Bund Futures Short Futures Contracts Expiring December 2018 ................................. 1,045 0.07
(14,153) (105.62)
67 of U.S. 2 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 34 0.00
(15,870) (120.23)
132 of U.S. 10 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 191 0.01
(17,819) (204.82)
87 of Euro BUXL 30 Year Bond Short Futures Contracts Expiring December 2018 ................................. 204 0.01
(5,919) (144.37)
41 of U.S. Long Bond Futures Short Futures Contracts Expiring December 2018 ................................. 159 0.01
(23,892) (127.76)
187 of U.S. 10 Year Ultra Futures Short Futures Contracts Expiring December 2018 ................................. 330 0.02
(10,536) (159.64)
66 of U.S. Ultra Bond Futures Short Futures Contracts Expiring December 2018 ................................. 354 0.03
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 73
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
(853) (71.11)
12 of Australian 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 8 0.00
(355) (70.99)
5 of Australian 3 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 1 0.00
(27,712) (142.11)
195 of Euro-BTP Futures Short Futures Contracts Expiring December 2018 ................................. (338) (0.02)
(1,767) (103.97)
17 of Canadian 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 23 0.00
(1,467) (97.82)
6 of 90 Day Euro Futures Short Futures Contracts Expiring June 2020 .......................................... 15 0.00
(2,427) (97.09)
10 of 90 Day Euro Futures Short Futures Contracts Expiring December 2020 ................................. 6 0.00
(11,529) (177.37)
65 of Euro-Oat Futures Short Futures Contracts Expiring December 2018 ................................. 125 0.01
(26,515) (119.98)
221 of U.S. 10 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 264 0.02
(3,705) (205.85)
18 of Euro BUXL 30 Year Bond Short Futures Contracts Expiring December 2018 ................................. 61 0.00
(5,215) (144.85)
36 of U.S. Long Bond Futures Short Futures Contracts Expiring December 2018 ................................. 157 0.01
(7,111) (71.11)
100 of Australian 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 70 0.00
(6,085) (1.30)
75 of BP Currency Futures Short Futures Contracts Expiring December 2018 ................................. (49) 0.00
(3,348) (1.16)
23 of Euro FX Currency Futures Short Futures Contracts Expiring December 2018 ................................. (10) 0.00
(8,509) (113.45)
75 of U.S. 5 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 73 0.00
(3,803) (105.65)
18 of U.S. 2 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 10 0.00
(4,695) (120.39)
39 of U.S. 10 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 63 0.00
(3,971) (128.11)
31 of U.S. 10 Year Ultra Futures Short Futures Contracts Expiring December 2018 ................................. 65 0.00
Unrealised gain on open futures contracts ....................................................................... 5,487 0.33 Unrealised loss on open futures contracts ........................................................................ (9,219) (0.55) Net unrealised gain (loss) on open futures contracts .................................................. (3,732) (0.22)
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 74 Russell Investments Global Bond Fund
Open Forward Foreign Currency Exchange Contracts (0.09%)
Unrealised gain on open forward foreign currency exchange contracts .......................... 16,835 1.00 Unrealised loss on open forward foreign currency exchange contracts ........................... (15,235) (0.91) Net unrealised gain (loss) on open forward foreign currency exchange contracts ... 1,600 0.09 Currency Options Purchased (0.00%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
Germany (0.00%) 202
Put at 9.10 EUR NOK
Expiring March 2019 ................................................................... 27 0.00 United States (0.00%)
1,140
Call at 15.15 USD ZAR Expiring October 2018 ................................................................. 2 0.00
70
Call at 6.95 USD CNH Expiring September 2018 ............................................................. - 0.00
3,000
Put at 67.00 USD INR Expiring November 2018 ............................................................. 1 0.00
4,500
Put at 67.00 USD INR Expiring November 2018 ............................................................. 1 0.00
1,500
Put at 68.50 USD INR Expiring December 2018 ............................................................. 1 0.00
5 0.00 Total currency options purchased at fair value (Premium paid USD 60,965) ......... 32 0.00 Currency Options Written ((0.01)%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
Australia (0.00%) (1,500)
Call at 0.73 USD AUD
Expiring October 2018 ................................................................. (3) 0.00 (4,100)
Call at 0.73 USD AUD
Expiring November 2018 ............................................................. (24) 0.00 (4,100)
Put at 0.69 USD AUD
Expiring November 2018 ............................................................. (4) 0.00 (1,500)
Call at 0.74 USD AUD
Expiring November 2018 ............................................................. (5) 0.00 (36) 0.00
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 92 Russell Investments Global Bond Fund
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States ((0.01)%) (1,900)
Call at 15.85 USD ZAR
Expiring October 2018 ................................................................. (1) 0.00 (1,500)
Call at 19.51 USD MXN
Expiring November 2018 ............................................................. - 0.00 (1,500)
Put at 1.28 USD CAD
Expiring October 2018 ................................................................. (3) 0.00 (800)
Put at 68.22 USD RUB
Expiring October 2018 ................................................................. (32) (0.01) (700)
Put at 68.45 USD RUB
Expiring October 2018 ................................................................. (29) 0.00 (3,000)
Call at 15.40 USD ZAR
Expiring October 2018 ................................................................. (8) 0.00 (1,176)
Call at 67.10 USD RUB
Expiring October 2018 ................................................................. (4) 0.00 (400)
Call at 68/00 USD RUB
Expiring October 2018 ................................................................. (2) 0.00 (79) (0.01)
Total currency options written at fair value (Premium received USD (185,844)) ..... (115) (0.01) Swaptions Purchased (0.01%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
Germany (0.00%) 3,100
Put at 400.00 on JPM EUR
Expiring December 2018 .............................................................. 5 0.00 United States (0.01%)
1,000 Put at 2.94 on 30 year IRO
Expiring December 2019 .............................................................. 74 0.00 1,900
Put at 2.94 on 30 year IRO
Expiring December 2019 .............................................................. 140 0.01 3,500
Put at 101.00 on CDSO CIT
Expiring December 2018 .............................................................. 4 0.00 3,500
Put at 102.00 on CDSO MER
Expiring December 2018 .............................................................. 5 0.00 26,500
Call at 57.50 on GS USD
Expiring October 2018 .................................................................. 40 0.00 263 0.01
Total swaptions purchased at fair value (Premium paid USD 208,447) ................... 268 0.01
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 93
Swaptions Written ((0.02)%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
Germany (0.00%) (11,550)
Call at 70.00 on CIT EUR
Expiring October 2018 ................................................................. (76) 0.00 United States ((0.02)%)
(1,400) Put at 0.01 on INFFLOOR USD
Expiring September 2020 ............................................................. - 0.00 (4,500)
Put at 2.75 on 5 year IRO USD
Expiring December 2019 ............................................................. (110) (0.01) (8,400)
Put at 2.75 on 5 year IRO USD
Expiring December 2019 ............................................................. (206) (0.01) (26,500)
Put at 75.00 on GS USD
Expiring October 2018 ................................................................. (2) 0.00 (318) (0.02)
Swaptions written at fair value (Premium received USD (204,844)) ........................ (394) (0.02) Interest Rate Swaps (0.12%)
Ccy Notional
Amount ‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
GBP 3,410 1.68% GBP 6 Month
LIBOR 10/10/2038 85 0.01
GBP 800 1.75% GBP 6 Month
LIBOR 10/10/2038 6 0.00
CAD 900 2.30% CAD 3 Month
CDOR 15/12/2025 19 0.00
JPY 1,780,000 0.30% JPY 6 Month
LIBOR 18/03/2026 (62) 0.00
USD 6,700 2.50% USD 3 Month
LIBOR 20/12/2027 309 0.02
JPY 1,610,000 0.30% JPY 6 Month
LIBOR 20/09/2027 18 0.00
JPY 40,000 1.00% JPY 6 Month
LIBOR 21/03/2048 (5) 0.00
JPY 350,000 0.75% JPY 6 Month
LIBOR 20/03/2038 (1) 0.00
JPY 550,000 0.38% JPY 6 Month
LIBOR 18/06/2028 (20) 0.00
USD 110,400 3.00% USD 3 Month
LIBOR 03/09/2020 232 0.01
GBP 300 1.50% GBP 6 Month
LIBOR 19/12/2028 7 0.00
GBP 800 1.50% GBP 6 Month
LIBOR 19/12/2048 67 0.00
USD 500 2.91% USD 3 Month
LIBOR 22/08/2048 27 0.00
USD 500 2.94% USD 3 Month
LIBOR 22/08/2048 24 0.00
KRW 4,800,000 KRW 3 Month
KWCDC 1.85% 30/07/2020 (4) 0.00
KRW 6,640,000 KRW 3 Month
MKSDA 2.36% 23/05/2023 90 0.01
GBP 2,060 GBP Less than Month LIBOR 3.45% 15/07/2038 (83) (0.01)
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 94 Russell Investments Global Bond Fund
Ccy Notional
Amount ‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
EUR 31,120 EUR 6 Month
EURIB 0.80% 15/08/2027 (412) (0.03)
GBP 490 GBP 12 Month
LIBOR 3.50% 15/07/2038 (6) 0.00
KRW 1,420,000 KRW 3 Month
MKSDA 2.08% 21/09/2023 2 0.00
JPY 1,490,000 JPY 6 Month
LIBOR 1.50% 19/06/2033 1,819 0.11
JPY 3,730,000 JPY 6 Month
LIBOR 0.25% 20/12/2019 107 0.01
JPY 20,900 JPY 6 Month
LIBOR 1.25% 17/06/2035 19 0.00
EUR 2,900 EUR 6 Month
EURIB 1.50% 04/07/2042 (13) 0.00
BRL 29,700 BRL Less than Month BRCDI 9.20% 04/01/2021 27 0.00
USD 4,300 USD 3 Month
LIBOR 2.80% 22/08/2023 (56) 0.00
EUR 6,400 EUR 6 Month
EURIB 1.00% 20/03/2029 (88) (0.01)
EUR 1,600 EUR 6 Month
EURIB 1.50% 20/03/2049 (42) 0.00 Interest rate swaps at positive fair value ........................................................................ 2,858 0.17 Interest rate swaps at negative fair value ....................................................................... (792) (0.05) Interest rate swaps at fair value ................................................................................. 2,066 0.12 Credit Default Swaps ((0.06)%)
Bond # 1.00% 20/03/2019 2 0.00 USD 2,800 iTraxx Europe # 1.00% 20/12/2023 55 0.00
USD (1,500)
Republic of South Africa Government International
Bond # 1.00% 20/12/2023 (69) 0.00
USD (4,300)
Russian Foreign Bond -
Eurobond #
1.00% 20/12/2023 (87) (0.01) Credit default swaps at positive fair value ..................................................................... 1,376 0.08 Credit default swaps at negative fair value .................................................................... (2,300) (0.14) Credit Default swaps at fair value .............................................................................. (924) (0.06) Total Financial Derivative Instruments ..................................................................... (1,199) (0.09)
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 96 Russell Investments Global Bond Fund
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (110.67%) ...................................................................... 1,862,485 110.67
Total Financial Liabilities at Fair Value through Profit or Loss ((1.68)%) ........................................................................ (28,055) (1.68)
Net Financial Assets at Fair Value through Profit or Loss (108.99%) ............................................................................... 1,834,430 108.99
Other Net Liabilities ((8.99)%) ............................................ (151,574) (8.99) Net Assets ............................................................................... 1,682,856 100.00
* Perpetual bonds. ** Partly held as collateral by the counterparties in connection with collateral purposes for over the counter financial derivative instruments held by the Fund. # In the event of bankruptcy or modified restructuring, the Fund will pay/receive the notional amount to/from the counterparty.
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing ........ 53.57 Transferable securities dealt in on another regulated market ........................................................................ 23.30 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) ............................... 5.83 Certificates of deposit ................................................................................................................................... 1.52 Commercial paper ......................................................................................................................................... 0.92 Investment funds (UCITS) ............................................................................................................................ 2.47 Exchange traded financial derivative instruments ........................................................................................ 0.26 Over the counter financial derivative instruments ........................................................................................ 1.02 Other assets ................................................................................................................................................... 11.11
100.00 Brokers for the open futures contracts are:
Bank of America Merrill Lynch Goldman Sachs Credit Suisse UBS
The counterparties for the open forward foreign currency exchange contracts are:
Australia and New Zealand Banking Group HSBC Banco Santander JP Morgan Bank of America Merrill Lynch Morgan Stanley Bank of Montreal Natwest Barclays Bank Nomura BNP Paribas Royal Bank of Canada Brown Brothers Harriman Royal Bank of Scotland Citibank Skandinaviska Enskilda Banken Citigroup Standard Chartered Bank Commonwealth Bank of Australia State Street Bank and Trust Company Credit Agricole Toronto Dominion Bank Credit Suisse UBS AG Deutsche Bank Westpac Goldman Sachs
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 97
The counterparty for the currency options purchased are:
Bank of America Merrill Lynch HSBC Barclays Bank Morgan Stanley Goldman Sachs
The counterparties for the currency options written are:
Bank of America Merrill Lynch Citibank BNP Paribas Goldman Sachs
The counterparties for swaptions purchased are:
Bank of America Merrill Lynch Goldman Sachs Citigroup JP Morgan
The counterparties for swaptions written are:
Bank of America Merrill Lynch Goldman Sachs Citigroup
The counterparties for the interest rate swaps are:
Bank of America Merrill Lynch JP Morgan Credit Suisse
The counterparties for the credit default swaps are:
Bank of America Merrill Lynch Goldman Sachs Barclays Bank HSBC BNP Paribas JP Morgan Citibank Morgan Stanley Citigroup Societe Generale Credit Suisse
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 98 Russell Investments Global Bond Fund
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 5,487 - - 5,487 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 16,835 - 16,835 Currency options purchased at fair value ......................... - 32 - 32 Swaptions purchased at fair value .................................... - 268 - 268 Interest rate swaps at fair value ........................................ - 2,858 - 2,858 Credit default swaps at fair value ..................................... - 1,376 - 1,376
Total assets ......................................................................... 5,487 1,842,662 14,336 1,862,485 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (9,219) - - (9,219) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (15,235) - (15,235) Currency options written at fair value .............................. - (115) - (115) Swaptions written at fair value ......................................... - (394) - (394) Interest rate swaps at fair value ........................................ - (792) - (792) Credit default swaps at fair value ..................................... - (2,300) - (2,300)
Total liabilities ................................................................... (9,219) (18,836) - (28,055)
Russell Investment Company plc Russell Investments Global Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Bond Fund 99
As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 11,086 - - 11,086 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 12,509 - 12,509 Currency options purchased at fair value ......................... - 11 - 11 Swaptions purchased at fair value .................................... - 383 - 383 Interest rate swaps at fair value ........................................ - 5,123 - 5,123 Credit default swaps at fair value ..................................... - 1,321 - 1,321
Total assets ......................................................................... 27,466 1,954,661 14,820 1,996,947 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (7,517) - - (7,517) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (17,212) - (17,212) Currency options written at fair value .............................. - (117) - (117) Equity options written at fair value .................................. - (27) - (27) Futures options written ..................................................... (10) - - (10) Swaptions written at fair value ......................................... - (369) - (369) Interest rate swaps at fair value ........................................ - (601) - (601) Credit default swaps at fair value ..................................... - (1,328) - (1,328)
Total liabilities ................................................................... (7,527) (19,654) - (27,181)
Russell Investment Company plc Russell Investments Global Bond Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 100 Russell Investments Global Bond Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities
Disposal Proceeds USD ‘000
Russell Investment Company III plc Russell Investment Company III plc Russell Investments US Dollar Cash Fund II Russell Investments US Dollar Cash Fund II Class R Roll-Up Shares 662,124 Class R Roll-Up Shares (675,557)
JP Morgan Mortgage Trust Fannie Mae Pool 1.770% due 13/04/18 148,600 3.500% due 15/09/46 (137,136)
Fannie Mae Pool 3.500% due 15/10/46 (129,460) 3.500% due 15/09/46 137,145 3.500% due 15/08/48 (127,753) 3.500% due 15/10/46 129,963 U.S. Treasury Note 3.500% due 15/08/48 127,628 2.125% due 30/09/24 (119,708)
U.S. Treasury Note Fannie Mae Pool 2.125% due 30/09/24 119,035 3.500% due 15/07/48 (83,877)
Fannie Mae Pool 3.500% due 15/06/48 (79,398) 3.500% due 15/07/48 83,751 U.S. Treasury Note 3.500% due 15/11/46 80,211 1.875% due 31/08/22 (72,795) 3.500% due 15/06/48 76,352 Russell Investment Company III plc
U.S. Treasury Note Russell Investments Euro Liquidity Fund 1.875% due 31/08/22 72,802 Class R Roll-Up Shares (66,788)
Russell Investment Company III plc Fannie Mae Pool Russell Investments Euro Liquidity Fund 3.000% due 15/05/46 (53,863) Class R Roll-Up Shares 63,807 3.000% due 15/09/46 (49,286)
Fannie Mae Pool 3.500% due 15/05/46 (38,999) 3.000% due 15/09/46 49,230 3.000% due 15/10/46 (31,686)
U.S. Treasury Note 3.000% due 15/06/48 (30,754) 2.750% due 15/02/2028 32,798 3.000% due 15/07/48 (27,939)
Fannie Mae Pool U.S. Treasury Note 3.000% due 15/10/46 31,833 2.250% due 15/11/27 (27,135) 3.000% due 15/06/48 30,834 Fannie Mae Pool 3.000% due 15/05/46 29,862 3.000% due 15/08/48 (27,032) 3.000% due 15/07/48 27,646 3.500% due 15/04/46 (25,997) 3.000% due 15/08/48 27,040 U.S. Treasury Note 3.000% due 15/11/46 26,871 1.875% due 31/07/22 (22,525)
Japan Treasury Discount Bill U.S. Treasury Inflation Indexed Bonds Zero Coupon due 06/08/18 22,869 0.125% due 15/01/23 (20,277)
Russell Investment Company plc Russell Investments Global Credit Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 101
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 3,350,917 3,943,793 Cash at bank (Note 2) .................................................................................................. 45,933 29,789 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ....................................................................................................................... 28,261 46,926 Debtors:
Receivable for investments sold ............................................................................... 130,932 61,700 Receivable on fund shares issued ............................................................................. 232 2,164 Interest receivable .................................................................................................... 29,107 32,239 Prepayments and other debtors ................................................................................. - 23
3,585,382 4,116,634 Liabilities Financial liabilities at fair value through profit or loss ................................................ (30,859) (44,428) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) .................................................................................................................... (13,065) (13,527) Payable for investments purchased .......................................................................... (105,438) (96,719) Payable on fund shares redeemed ............................................................................ (54) (142) Distributions payable on income share classes ......................................................... (2,296) (2,147) Management fees payable ........................................................................................ (1,674) (1,949) Depositary fees payable ........................................................................................... (185) (58) Sub-custodian fees payable ...................................................................................... (64) (58) Administration fees payable ..................................................................................... (131) (86) Audit fees payable .................................................................................................... (15) (31) Other fees payable .................................................................................................... (1) (2)
(153,782) (159,147) Net assets attributable to redeemable participating shareholders ........................ 3,431,600 3,957,487
Russell Investment Company plc Russell Investments Global Credit Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 102 Russell Investments Global Credit Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Interest income .......................................................................................................... 59,440 47,446
Net gain (loss) on investment activities ........................................................................ (254,676) 203,309
Total investment income (expense) ........................................................................... (195,236) 250,755
Total operating expenses ............................................................................................ (12,937) (10,713) Net income (expense) .................................................................................................. (208,173) 240,042 Finance costs
Distributions (Note 7) ................................................................................................. (58,051) (53,735) Profit (loss) for the financial period before taxation ............................................... (266,224) 186,307 Taxation
Withholding tax (Note 8) .......................................................................................... (87) 16 Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (266,311) 186,323 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Global Credit Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 103
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (266,311) 186,323 Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................. 53,556 50,006 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ....................................................................................... (313,132) 182,067
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (525,887) 418,396 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 3,957,487 3,236,302 End of financial period ............................................................................................. 3,431,600 3,654,698
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 104 Russell Investments Global Credit Fund
Principal Amount
Fair Value USD ‘000
Fund %
Transferable Securities (90.57%) Long Term Bonds and Notes (84.39%) Argentina (0.07%)
Argentina Bonar Bonds ARS 4,000,000 24.949% due 03/04/22 ..... 103 0.00
Argentina POM Politica Monetaria
18,064,000 27.250% % due 21/06/20 . 535 0.02
Argentine Republic Government International Bond
EUR 1,200,000 2.260% due 31/12/38 ....... 830 0.02 1,200,000 6.250% due 09/11/47 ....... 1,071 0.03 2,539 0.07 Australia (2.25%)
USD 200,000 2.950% due 18/12/22 ...... 186 0.01 Denmark (0.22%)
AP Moller - Maersk A/S EUR 1,300,000 1.750% due 18/03/21 ...... 1,560 0.05
Danske Bank A/S 1,015,000 0.250% due 28/11/22 ...... 1,157 0.03 415,000 0.750% due 02/06/23 ...... 480 0.01 1,200,000 5.875% due 29/10/49 ...... 1,424 0.04
Eutelsat SA 500,000 2.000% due 02/10/25 ...... 576 0.02
Fromageries Bel SA 300,000 1.500% due 18/04/24 ...... 345 0.01 Gecina SA 200,000 1.375% due 30/06/27 ...... 228 0.01 400,000 1.375% due 26/01/28 ...... 449 0.01
Holding d'Infrastructures de Transport SAS
400,000 0.625% due 27/03/23 ...... 448 0.01 600,000 1.625% due 27/11/27 ...... 646 0.02 HSBC France SA 1,200,000 0.200% due 04/09/21 ...... 1,394 0.04 900,000 0.600% due 20/03/23 ...... 1,047 0.03
Ingenico Group SA 300,000 1.625% due 13/09/24 ...... 337 0.01
mFinance France SA 5,000,000 1.398% due 26/09/20 ...... 5,912 0.17
Pernod Ricard SA USD 300,000 4.450% due 15/01/22 ...... 306 0.01 Renault SA EUR 1,400,000 2.000% due 28/09/26 ...... 1,636 0.05 SapphireOne Mortgages
539,483 0.181% due 25/02/61 ...... 629 0.02 SEB SA
400,000 1.500% due 31/05/24 ...... 463 0.01 Societe Generale SA 1,000,000 0.250% due 18/01/22 ...... 1,157 0.03 1,100,000 1.000% due 01/04/22 ...... 1,284 0.04 1,000,000 1.375% due 23/02/28 ...... 1,132 0.03
Sogecap SA 300,000 4.125% due 29/12/49 ...... 365 0.01 TDF Infrastructure SAS 9,600,000 2.875% due 19/10/22 ...... 11,973 0.35 3,600,000 2.500% due 07/04/26 ...... 4,300 0.12
Total SA 407,000 2.625% due 29/12/49 ...... 484 0.01
Ubisoft Entertainment SA 4,300,000 1.289% due 30/01/23 ...... 4,998 0.14 81,036 2.36 Germany (1.85%) ADLER Real Estate AG 400,000 1.875% due 27/04/23 ...... 456 0.01 200,000 3.000% due 27/04/26 ...... 228 0.01
Allianz SE 800,000 2.241% due 07/07/45 ...... 932 0.03
Bayer AG 478,000 2.375% due 02/04/75 ...... 547 0.02
Bertelsmann SE & Co KGaA 900,000 1.250% due 29/09/25 ...... 1,043 0.03
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 108 Russell Investments Global Credit Fund
Principal Amount
Fair Value USD ‘000
Fund %
Bundesobligation 2,180,000 Zero Coupon due 08/04/22 2,562 0.07 1,583,926 Zero Coupon due 14/04/23 1,853 0.05 Bundesrepublik Deutschland 1,801,522 2.000% due 15/08/23 ....... 2,310 0.07 603,847 0.500% due 15/02/25 ....... 720 0.02 5,367,441 0.250% due 15/02/27 ....... 6,208 0.18 282,000 6.250% due 04/01/30 ....... 534 0.02 433,769 4.000% due 04/01/37 ....... 775 0.02 Commerzbank AG 400,000 1.125% due 19/09/25 ....... 446 0.01 690,000 1.500% due 28/08/28 ....... 791 0.02
Continental AG 130,000 3.125% due 09/09/20 ....... 160 0.00
Deutsche Bahn Finance GMBH
488,000 1.375% due 28/03/31 ....... 565 0.02 937,000 0.875% due 11/07/31 ....... 1,019 0.03 372,000 1.625% due 16/08/33 ....... 437 0.01 Deutsche Bank AG
GBP 3,700,000 1.875% due 28/02/20 ....... 4,809 0.14 USD 1,200,000 4.250% due 14/10/21 ....... 1,193 0.03 EUR 500,000 1.500% due 20/01/22 ....... 584 0.02 USD 1,000,000 3.300% due 16/11/22 ....... 952 0.03
200,000 3.950% due 27/02/23 ....... 194 0.01 3,750,000 4.875% due 01/12/32 ....... 3,337 0.10
DVB Bank SE EUR 4,400,000 1.250% due 15/09/21 ....... 5,155 0.15
Germany, Federal Republic of
813,744 6.250% due 04/01/24 ....... 1,260 0.04
Kreditanstalt fuer Wiederaufbau
11,300,000 1.250% due 17/10/19 ....... 13,368 0.39
Landwirtschaftliche Rentenbank
890,000 0.625% due 20/02/30 ....... 997 0.03
O2 Telefonica Deutschland Finanzierungs GmbH
500,000 1.750% due 05/07/25 ....... 585 0.02 ProSiebenSat.1 Media SE
400,000 2.625% due 15/04/21 ....... 486 0.01 Talanx AG
500,000 2.250% due 05/12/47 ....... 529 0.02 Volkswagen Bank GmbH 600,000 0.625% due 08/09/21 ....... 698 0.02 3,100,000 0.750% due 15/06/23 ....... 3,543 0.10 1,000,000 1.250% due 10/06/24 ....... 1,145 0.03 Volkswagen Leasing GmbH 1,335,000 1.000% due 16/02/23 ....... 1,546 0.04 621,000 1.375% due 20/01/25 ....... 711 0.02 815,000 1.625% due 15/08/25 ....... 939 0.03 63,617 1.85
Principal Amount
Fair Value USD ‘000
Fund %
Guernsey, Channel Islands (0.87%)
Credit Suisse Group Funding Guernsey Ltd
USD 900,000 2.750% due 26/03/20 ...... 892 0.03 12,410,000 3.125% due 10/12/20 ...... 12,316 0.36
EUR 375,000 1.250% due 14/04/22 ...... 443 0.01 USD 700,000 3.800% due 15/09/22 ...... 697 0.02 GBP 8,935,000 2.750% due 08/08/25 ...... 11,487 0.33 USD 1,200,000 4.550% due 17/04/26 ...... 1,208 0.04
Globalworth Real Estate Investments Ltd
EUR 500,000 2.875% due 20/06/22 ...... 599 0.02 1,780,000 3.000% due 29/03/25 ...... 2,083 0.06 29,725 0.87 Hong Kong (0.75%) AIA Group Ltd
USD 1,185,000 3.200% due 11/03/25 ...... 1,129 0.03 10,960,000 3.900% due 06/04/28 ...... 10,773 0.31
CRCC Yuxiang Ltd 9,000,000 3.500% due 16/05/23 ...... 8,747 0.25
Vanke Real Estate Hong Kong Co Ltd
3,400,000 4.150% due 18/04/23 ...... 3,317 0.10 2,100,000 3.975% due 09/11/27 ...... 1,898 0.06 25,864 0.75 India (0.37%)
Adani Ports & Special Economic Zone Ltd
300,000 3.950% due 19/01/22 ...... 294 0.01 8,000,000 3.950% due 19/01/22 ...... 7,842 0.23
Export-Import Bank of India 400,000 3.875% due 02/10/19 ...... 401 0.01
GMR Hyderabad International Airport Ltd
200,000 4.250% due 27/10/27 ...... 176 0.01 ICICI Bank Ltd
400,000 3.500% due 18/03/20 ...... 397 0.01 NTPC Ltd EUR 2,970,000 2.750% due 01/02/27 ...... 3,427 0.10
12,537 0.37 Indonesia (0.16%)
Bank Rakyat Indonesia Persero Tbk PT
USD 1,000,000 4.625% due 20/07/23 ...... 1,003 0.03
Indonesia Government International Bond
EUR 250,000 2.875% due 08/07/21 ...... 307 0.01 3,195,000 2.625% due 14/06/23 ...... 3,900 0.11
Pelabuhan Indonesia III Persero PT
USD 400,000 4.500% due 02/05/23 ...... 400 0.01 5,610 0.16
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 109
Principal Amount
Fair Value USD ‘000
Fund %
Ireland (1.41%)
Abbott Ireland Financing DAC
EUR 1,800,000 Zero Coupon due 27/09/20 2,089 0.06
ABH Financial Ltd Via Alfa Holding Issuance Plc
500,000 2.626% due 28/04/20 ....... 581 0.02
AerCap Global Aviation Trust
USD 825,000 4.625% due 30/10/20 ....... 841 0.02 150,000 4.500% due 15/05/21 ....... 152 0.00 200,000 3.500% due 26/05/22 ....... 196 0.01 600,000 4.125% due 03/07/23 ....... 596 0.02 3,300,000 3.500% due 15/01/25 ....... 3,114 0.09
Bank of Ireland EUR 870,000 1.250% due 09/04/20 ....... 1,029 0.03 Bank of Ireland Group Plc USD 4,550,000 4.125% due 19/09/27 ....... 4,317 0.12 ESB Finance DAC EUR 430,000 3.494% due 12/01/24 ....... 570 0.02 Fastnet Securities 13 DAC
356,042 Zero Coupon due 18/04/57 .......................................... 414 0.01
GE Capital International Funding Co Unlimited Co
USD 19,698,000 2.342% due 15/11/20 ....... 19,253 0.56 6,648,000 4.418% due 15/11/35 ....... 6,268 0.18
James Hardie Industries Plc EUR 1,695,000 3.625% due 01/10/26 ....... 1,997 0.06
Lunar Funding V for Swisscom AG
650,000 1.125% due 12/10/26 ....... 749 0.02 Lusitano Mortgages No 1 Plc
564,673 0.241% due 15/12/35 ....... 658 0.02 Lusitano Mortgages No 2 Plc
154,152 0.161% due 16/11/36 ....... 179 0.01
Novolipetsk Steel Via Steel Funding DAC
USD 300,000 4.500% due 15/06/23 ....... 293 0.01
PartnerRe Ireland Finance DAC
EUR 1,165,000 1.250% due 15/09/26 ....... 1,294 0.04
Phosagro OAO Via Phosagro Bond Funding DAC
USD 500,000 3.949% due 24/04/23 ....... 472 0.01 Roadster Finance DAC EUR 1,900,000 2.375% due 08/12/27 ....... 2,116 0.06
SMBC Aviation Capital Finance DAC
USD 1,225,000 4.125% due 15/07/23 ....... 1,228 0.04 48,406 1.41
Principal Amount
Fair Value USD ‘000
Fund %
Italy (1.65%) 2i Rete Gas SpA EUR 6,051,000 2.195% due 11/09/25 ...... 7,069 0.21 Atlantia SpA
680,000 1.625% due 03/02/25 ...... 746 0.02
Davide Campari-Milano SpA
1,091,000 2.750% due 30/09/20 ...... 1,329 0.04 Enel SpA
1,840,000 2.500% due 24/11/78 ...... 2,035 0.06 Eni SpA 411,000 4.250% due 03/02/20 ...... 505 0.01
USD 3,920,000 4.000% due 12/09/23 ...... 3,881 0.11 EUR 1,061,000 1.500% due 02/02/26 ...... 1,235 0.04 USD 3,120,000 4.750% due 12/09/28 ...... 3,094 0.09
FCA Bank SpA EUR 1,202,000 1.375% due 17/04/20 ...... 1,416 0.04
1,155,000 1.000% due 15/11/21 ...... 1,345 0.04 1,045,000 1.000% due 21/02/22 ...... 1,212 0.04 Intesa Sanpaolo SpA 700,000 4.375% due 15/10/19 ...... 845 0.02
USD 4,050,000 6.500% due 24/02/21 ...... 4,194 0.12 EUR 685,000 2.125% due 30/08/23 ...... 797 0.02 USD 200,000 5.710% due 15/01/26 ...... 182 0.01
635,000 3.875% due 12/01/28 ...... 537 0.02 3,110,000 4.375% due 12/01/48 ...... 2,365 0.07
EUR 2,725,000 7.750% due 29/12/49 ...... 3,405 0.10
Italy Buoni Poliennali Del Tesoro
4,138,746 2.100% due 15/09/21 ...... 5,024 0.15 Leonardo SpA
200,000 1.500% due 07/06/24 ...... 224 0.01 Telecom Italia SpA
USD 4,985,000 5.303% due 30/05/24 ...... 4,873 0.14 EUR 700,000 3.625% due 25/05/26 ...... 850 0.02
1,955,000 2.375% due 12/10/27 ...... 2,136 0.06
Terna Rete Elettrica Nazionale SpA
135,000 4.875% due 03/10/19 ...... 164 0.00 UniCredit SpA 860,000 2.000% due 04/03/23 ...... 1,004 0.03
USD 1,050,000 4.625% due 12/04/27 ...... 965 0.03 3,376,000 5.861% due 19/06/32 ...... 3,024 0.09 Wind Tre SpA
EUR 201,000 2.625% due 20/01/23 ...... 220 0.01 600,000 2.750% due 20/01/24 ...... 652 0.02 1,055,000 3.125% due 20/01/25 ...... 1,121 0.03 56,449 1.65
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 110 Russell Investments Global Credit Fund
Principal Amount
Fair Value USD ‘000
Fund %
Japan (0.72%)
Meiji Yasuda Life Insurance Co
USD 500,000 5.100% due 26/04/48 ....... 504 0.01
Mitsubishi UFJ Financial Group Inc
1,000,000 3.125% due 25/07/22 ....... 1,006 0.03 1,100,000 3.195% due 26/07/23 ....... 1,104 0.03 200,000 2.757% due 13/09/26 ....... 182 0.01
Mitsubishi UFJ Trust & Banking Corp
11,191,000 2.650% due 19/10/20 ....... 11,015 0.32 Mizuho Bank Ltd
300,000 2.400% due 26/03/20 ....... 296 0.01 Mizuho Financial Group Inc 4,400,000 2.632% due 12/04/21 ....... 4,294 0.13 800,000 3.211% due 11/09/22 ....... 806 0.02 2,520,000 3.549% due 05/03/23 ....... 2,491 0.07
MUFG Bank Ltd 1,300,000 2.300% due 05/03/20 ....... 1,283 0.04
Sumitomo Mitsui Financial Group Inc
1,300,000 4.007% due 09/03/21 ....... 1,339 0.04 500,000 2.058% due 14/07/21 ....... 481 0.01 24,801 0.72 Jersey, Channel Islands (0.67%) AA Bond Co Ltd
GBP 1,200,000 2.875% due 31/01/22 ....... 1,518 0.04 2,800,000 4.875% due 31/07/24 ....... 3,657 0.11
Aptiv Plc USD 755,000 3.150% due 19/11/20 ....... 749 0.02
Glencore Finance Europe Ltd
EUR 527,000 1.750% due 17/03/25 ....... 601 0.02 Heathrow Funding Ltd GBP 7,455,000 6.750% due 03/12/26 ....... 12,644 0.37
HSBC Bank Capital Funding Sterling 1 LP
1,540,000 5.844% due 29/11/49 ....... 2,415 0.07
Kennedy Wilson Europe Real Estate Ltd
1,100,000 3.950% due 30/06/22 ....... 1,480 0.04 23,064 0.67 Korea, Republic of (0.15%)
Korea International Bond EUR 200,000 2.125% due 10/06/24 ....... 251 0.01 SK Telecom Co Ltd USD 5,100,000 3.750% due 16/04/23 ....... 5,057 0.14
5,308 0.15
Principal Amount
Fair Value USD ‘000
Fund %
Kuwait (0.05%)
Kuwait International Government Bond
1,700,000 3.500% due 20/03/27 ...... 1,669 0.05 Luxembourg (4.88%)
ADO Properties SA EUR 8,300,000 1.500% due 26/07/24 ...... 9,394 0.27 Allergan Funding SCS USD 3,135,000 4.550% due 15/03/35 ...... 3,058 0.09
Allergan Funding SCS 1,582,000 3.000% due 12/03/20 ...... 1,581 0.05 1,000,000 3.450% due 15/03/22 ...... 994 0.03
EUR 2,490,000 2.125% due 01/06/29 ...... 2,845 0.08 Altice Financing SA
700,000 5.250% due 15/02/23 ...... 847 0.03 Aroundtown SA 600,000 2.125% due 13/03/23 ...... 723 0.02 200,000 1.500% due 15/07/24 ...... 230 0.01 500,000 1.000% due 07/01/25 ...... 552 0.02 300,000 1.875% due 19/01/26 ...... 343 0.01 500,000 2.000% due 02/11/26 ...... 569 0.02
Bevco Lux Sarl 1,210,000 1.750% due 09/02/23 ...... 1,414 0.04
Blackstone Property Partners Europe Holdings Sarl
422,000 1.400% due 06/07/22 ...... 493 0.01 1,200,000 2.200% due 24/07/25 ...... 1,376 0.04
Corestate Capital Holding SA
200,000 3.500% due 15/04/23 ...... 229 0.01
Council Of Europe Development Bank
715,000 2.875% due 31/08/21 ...... 906 0.03 378,000 1.750% due 24/04/24 ...... 476 0.01 CPI Property Group SA 3,300,000 2.125% due 04/10/24 ...... 3,808 0.11 136,000 4.375% due 09/05/52 ...... 152 0.00
Eurofins Scientific SE 400,000 2.125% due 25/07/24 ...... 467 0.01
European Financial Stability Facility
3,765,000 1.500% due 22/01/20 ...... 4,483 0.13 3,159,000 1.375% due 07/06/21 ...... 3,828 0.11 539,000 3.500% due 04/02/22 ...... 703 0.02 3,800,000 0.500% due 20/01/23 ...... 4,498 0.13 3,390,000 1.875% due 23/05/23 ...... 4,255 0.12 6,100,000 0.200% due 28/04/25 ...... 6,965 0.20 2,908,000 0.400% due 31/05/26 ...... 3,327 0.10
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 111
Principal Amount
Fair Value USD ‘000
Fund %
2,216,000 0.950% due 14/02/28 ....... 2,605 0.08 963,000 2.750% due 03/12/29 ....... 1,330 0.04 904,000 3.000% due 04/09/34 ....... 1,310 0.04 1,916,000 2.350% due 29/07/44 ....... 2,624 0.08 5,500,000 1.200% due 17/02/45 ....... 5,898 0.17 1,247,000 1.375% due 31/05/47 ....... 1,381 0.04 European Investment Bank 2,948,000 3.625% due 15/01/21 ....... 3,736 0.11 2,169,000 1.500% due 15/04/21 ....... 2,635 0.08 1,828,000 3.000% due 28/09/22 ....... 2,380 0.07 5,428,000 2.125% due 15/01/24 ....... 6,941 0.20 16,600,000 0.375% due 16/07/25 ....... 19,165 0.56 3,487,000 2.750% due 15/09/25 ....... 4,685 0.14 1,947,000 3.500% due 15/04/27 ....... 2,802 0.08 2,312,000 4.000% due 15/04/30 ....... 3,583 0.11 1,277,000 4.000% due 15/10/37 ....... 2,149 0.06 662,000 2.750% due 15/03/40 ....... 964 0.03
European Stability Mechanism
1,099,000 0.875% due 15/10/19 ....... 1,294 0.04 1,260,000 1.375% due 04/03/21 ....... 1,523 0.04 2,425,000 0.100% due 31/07/23 ....... 2,809 0.08 1,350,000 2.125% due 20/11/23 ....... 1,726 0.05 1,532,000 1.000% due 23/09/25 ....... 1,840 0.05 4,100,000 0.750% due 15/03/27 ....... 4,780 0.14 643,000 1.625% due 17/11/36 ....... 780 0.02 1,430,000 1.750% due 20/10/45 ....... 1,755 0.05 European Union 1,875,000 3.500% due 04/06/21 ....... 2,397 0.07 1,033,000 1.875% due 04/04/24 ....... 1,309 0.04 1,386,000 2.500% due 04/11/27 ....... 1,863 0.05 1,752,000 1.375% due 04/10/29 ....... 2,141 0.06 800,000 3.375% due 04/04/38 ....... 1,261 0.04
Gazprom Neft OAO Via GPN Capital SA
USD 800,000 4.375% due 19/09/22 ....... 784 0.02 1,000,000 4.375% due 19/09/22 ....... 980 0.03
Gazprom OAO Via Gaz Capital SA
GBP 650,000 4.250% due 06/04/24 ....... 846 0.03 GELF Bond Issuer I SA
EUR 650,000 1.750% due 22/11/21 ....... 780 0.02 500,000 0.875% due 20/10/22 ....... 580 0.02
International Bank for Reconstruction & Development
4,760,000 1.200% due 08/08/34 ....... 5,519 0.16
Prologis International Funding II SA
550,000 1.750% due 15/03/28 ....... 632 0.02 QGOG Constellation SA USD 200,783 9.500% due 09/11/24 ....... 98 0.00
Principal Amount
Fair Value USD ‘000
Fund %
Sberbank of Russia Via SB Capital SA
2,500,000 5.500% due 26/02/24 ...... 2,498 0.07 SELP Finance Sarl EUR 2,100,000 1.250% due 25/10/23 ...... 2,428 0.07
Severstal OAO Via Steel Capital SA
USD 600,000 5.900% due 17/10/22 ...... 616 0.02
Simon International Finance SCA
EUR 400,000 1.250% due 13/05/25 ...... 468 0.01
Talanx Finanz Luxembourg SA
400,000 8.367% due 15/06/42 ...... 574 0.02 Telecom Italia Finance SA
1,500,000 7.750% due 24/01/33 ...... 2,404 0.07 167,389 4.88 Malaysia (0.01%)
Petronas Global Sukuk Ltd USD 400,000 2.707% due 18/03/20 ...... 396 0.01
Mauritius (0.19%)
MTN Mauritius Investment Ltd
6,590,000 5.373% due 13/02/22 ...... 6,387 0.19 Mexico (1.10%) America Movil SAB de CV 3,170,000 5.000% due 30/03/20 ...... 3,249 0.09
EUR 485,000 3.000% due 12/07/21 ...... 606 0.02 GBP 5,890,000 5.000% due 27/10/26 ...... 8,980 0.26
BBVA Bancomer SA USD 5,810,000 6.500% due 10/03/21 ...... 6,083 0.18
900,000 6.750% due 30/09/22 ...... 967 0.03 700,000 5.125% due 18/01/33 ...... 640 0.02
Mexico Government International Bond
EUR 400,000 2.375% due 09/04/21 ...... 490 0.01 420,000 2.750% due 22/04/23 ...... 526 0.01 290,000 3.625% due 09/04/29 ...... 384 0.01 490,000 3.000% due 06/03/45 ...... 551 0.02 Petroleos Mexicanos 1,450,000 2.500% due 21/08/21 ...... 1,720 0.05
USD 3,625,000 3.500% due 30/01/23 ...... 3,446 0.10 EUR 3,390,000 5.125% due 15/03/23 ...... 4,364 0.13
300,000 2.750% due 21/04/27 ...... 320 0.01 USD 833,000 5.500% due 27/06/44 ...... 707 0.02
1,661,000 6.750% due 21/09/47 ...... 1,589 0.05 Trust F/1401
3,000,000 6.950% due 30/01/44 ...... 3,105 0.09 37,727 1.10
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 112 Russell Investments Global Credit Fund
Principal Amount
Fair Value USD ‘000
Fund %
Czech Republic (0.06%) Czech Republic International
EUR 206,000 4.125% due 18/03/20 ....... 255 0.01 869,000 3.625% due 14/04/21 ....... 1,107 0.03
EP Infrastructure AS 720,000 1.659% due 26/04/24 ....... 811 0.02 2,173 0.06 Netherlands (3.30%) ABN AMRO Bank NV 1,596,000 0.500% due 17/07/23 ....... 1,845 0.05 2,200,000 4.750%* ........................... 2,479 0.07
Alliander NV 585,000 4.500% due 17/12/19 ....... 718 0.02
400,000 5.250% due 18/02/24 ....... 433 0.01 South Africa (0.11%)
Republic of South Africa Government International Bond
3,685,000 5.875% due 30/05/22 ....... 3,836 0.11 Spain (1.11%)
ACS Actividades de Construccion y Servicios SA
EUR 1,200,000 2.875% due 01/04/20 ....... 1,449 0.04
Amadeus Capital Markets SAU
900,000 Zero Coupon due 19/05/19 1,046 0.03 Amadeus IT Group SA 700,000 0.875% due 18/09/23 ....... 814 0.02 700,000 1.500% due 18/09/26 ....... 812 0.02 Banco Santander SA 700,000 3.250% due 04/04/26 ....... 849 0.03
300,000 8.375% due 15/07/23 ...... 381 0.01 Aviva Plc EUR 393,000 3.375% due 04/12/45 ...... 461 0.01
Barclays Bank Plc USD 1,170,000 5.140% due 14/10/20 ...... 1,199 0.04 GBP 2,200,000 10.000% due 21/05/21 .... 3,394 0.10 USD 200,000 7.625% due 21/11/22 ...... 217 0.01
Barclays Plc 2,500,000 2.875% due 08/06/20 ...... 2,476 0.07 440,000 3.250% due 12/01/21 ...... 435 0.01
GBP 1,200,000 2.375% due 06/10/23 ...... 1,532 0.04 700,000 3.125% due 17/01/24 ...... 909 0.03
EUR 530,000 2.625% due 11/11/25 ...... 624 0.02 USD 275,000 4.375% due 12/01/26 ...... 267 0.01 GBP 385,000 3.250% due 12/02/27 ...... 488 0.01 EUR 570,000 2.000% due 07/02/28 ...... 634 0.02 GBP 600,000 5.875%* .......................... 745 0.02
400,000 7.250%* .......................... 540 0.02 BG Energy Capital Plc EUR 1,341,000 1.250% due 21/11/22 ...... 1,612 0.05 BP Capital Markets Plc
992,000 1.077% due 26/06/25 ...... 1,156 0.03
British Telecommunications Plc
1,000,000 1.000% due 23/06/24 ...... 1,151 0.03 GBP 200,000 3.125% due 21/11/31 ...... 253 0.01 Bunzl Finance Plc
200,000 2.250% due 11/06/25 ...... 254 0.01 Cadent Finance Plc
700,000 2.125% due 22/09/28 ...... 852 0.02
Channel Link Enterprises Finance Plc
EUR 2,150,000 2.706% due 30/06/50 ...... 2,549 0.07 Diageo Capital Plc USD 5,885,000 4.828% due 15/07/20 ...... 6,060 0.18 ENW Finance Plc GBP 480,000 6.125% due 21/07/21 ...... 702 0.02
G4S International Finance Plc
EUR 800,000 1.500% due 09/01/23 ...... 942 0.03 GlaxoSmithKline Capital Plc 1,176,000 Zero Coupon due 12/09/20 1,366 0.04 205,000 1.250% due 21/05/26 ...... 241 0.01
Grainger Plc GBP 300,000 3.375% due 24/04/28 ...... 386 0.01
HSBC Holdings Plc USD 4,500,000 2.922% due 18/05/21 ...... 4,510 0.13 EUR 725,000 1.500% due 15/03/22 ...... 870 0.03 USD 3,500,000 3.033% due 22/11/23 ...... 3,382 0.10
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 116 Russell Investments Global Credit Fund
Tesco Property Finance 4 Plc 97,895 5.801% due 13/10/40 147 0.00 Tesco Property Finance 6 Plc 581,358 5.411% due 13/07/44 842 0.02 TP ICAP Plc 900,000 5.250% due 26/01/24 1,174 0.03 University of Oxford 400,000 2.544% due 08/12/17 472 0.01 Uropa Securities Plc
EUR 1,000,000 Zero Coupon due 10/10/40 1,111 0.03 89,081 Zero Coupon due 10/10/40 103 0.00
Virgin Media Secured Finance Plc
GBP 800,000 5.000% due 15/04/27 1,043 0.03 Vodafone Group Plc
EUR 388,000 1.125% due 20/11/25 443 0.01 USD 1,200,000 4.375% due 30/05/28 ....... 1,185 0.03
2,200,000 5.000% due 30/05/38 ....... 2,176 0.06 4,313,000 6.250% due 03/10/78 ....... 4,301 0.13
Western Power Distribution Plc
GBP 5,220,000 3.625% due 06/11/23 7,113 0.21 WPP Finance 2013
EUR 680,000 0.750% due 18/11/19 797 0.02 WPP Finance 2016 1,815,000 1.375% due 20/03/25 2,090 0.06 136,270 3.97
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 117
Principal Amount
Fair Value USD ‘000
Fund %
United States (45.12%)
21st Century Fox America Inc
USD 1,000,000 3.700% due 15/09/24 ....... 1,005 0.03 2,060,000 6.900% due 15/08/39 ....... 2,814 0.08 2,176,000 4.750% due 15/09/44 ....... 2,340 0.07 AbbVie Inc
EUR 955,000 0.375% due 18/11/19 ....... 1,115 0.03 USD 1,570,000 4.875% due 14/11/48 ....... 1,552 0.05
ABFC Trust 375,493 2.356% due 25/10/36 ....... 365 0.01 750,080 2.346% due 25/01/37 ....... 558 0.02 Aetna Inc 770,000 2.800% due 15/06/23 ....... 740 0.02 489,000 3.875% due 15/08/47 ....... 434 0.01
Air Lease Corp 200,000 3.000% due 15/09/23 ....... 191 0.01
Albemarle Corp 3,001,000 5.450% due 01/12/44 ....... 3,145 0.09
Alexandria Real Estate Equities Inc
1,100,000 3.900% due 15/06/23 ....... 1,106 0.03 7,880,000 3.450% due 30/04/25 ....... 7,547 0.22 3,010,000 3.950% due 15/01/28 ....... 2,895 0.08
Alleghany Corp 3,205,000 4.950% due 27/06/22 ....... 3,337 0.10
Allegion US Holding Co Inc 500,000 3.550% due 01/10/27 ....... 456 0.01
Ally Financial Inc 600,000 8.000% due 01/11/31 ....... 731 0.02 84,592 2.716% due 25/07/35 ....... 73 0.00 33,905 3.326% due 25/05/36 ....... 28 0.00 1 5.750% due 25/05/36 ....... - 0.00 873,255 2.375% due 20/07/46 ....... 686 0.02
American Airlines Inc 302,777 5.250% due 31/01/21 ....... 314 0.01
American Airlines Pass Through Trust
5,594,063 4.950% due 15/02/25 ....... 5,642 0.16 6,661,450 3.650% due 15/06/28 ....... 6,428 0.19
American Builders & Contractors Supply Co Inc
400,000 5.875% due 15/05/26 ....... 403 0.01 American Express Co 4,895,000 2.500% due 01/08/22 ....... 4,697 0.14 2,885,000 3.400% due 27/02/23 ....... 2,842 0.08
American Homes 4 Rent LP 200,000 4.250% due 15/02/28 ....... 192 0.01
American Honda Finance Corp
8,250,000 2.691% due 05/11/21 ....... 8,264 0.24
Principal Amount
Fair Value USD ‘000
Fund %
American International Group Inc
2,695,000 3.750% due 10/07/25 ...... 2,625 0.08 EUR 3,005,000 1.875% due 21/06/27 ...... 3,487 0.10 USD 100,000 5.750% due 01/04/48 ...... 97 0.00
American Tower Corp 1,000,000 2.800% due 01/06/20 ...... 991 0.03 2,400,000 3.300% due 15/02/21 ...... 2,387 0.07
EUR 1,700,000 1.950% due 22/05/26 ...... 1,988 0.06
Americredit Automobile Receivables Trust
USD 4,000,000 2.740% due 08/12/22 ...... 3,931 0.11
Blue Racer Midstream LLC / Blue Racer Finance Corp
100,000 6.625% due 15/07/26 ...... 102 0.00 BMW US Capital LLC 2,805,000 2.788% due 06/04/20 ...... 2,813 0.08 4,700,000 2.747% due 12/04/21 ...... 4,717 0.14
Boardwalk Pipelines LP 9,980,000 5.950% due 01/06/26 ...... 10,578 0.31
Celgene Corp 4,415,000 4.550% due 20/02/48 ....... 4,124 0.12
Charter Communications Operating LLC
8,020,000 4.908% due 23/07/25 ....... 8,155 0.24 100,000 3.750% due 15/02/28 ....... 92 0.00 200,000 4.200% due 15/03/28 ....... 192 0.01 4,463,000 5.375% due 01/05/47 ....... 4,244 0.12 1,935,000 5.750% due 01/04/48 ....... 1,943 0.06
Chase Mortgage Finance Trust
58,936 3.785% due 25/03/37 ....... 58 0.00
Cheniere Corpus Christi Holdings LLC
200,000 7.000% due 30/06/24 ....... 220 0.01 200,000 5.125% due 30/06/27 ....... 201 0.01
Cheniere Energy Partners LP 300,000 5.250% due 01/10/25 ....... 301 0.01
Chevron Corp 7,397,000 3.265% due 16/05/21 ....... 7,552 0.22 Chubb INA Holdings Inc 900,000 2.300% due 03/11/20 ....... 884 0.03
EUR 1,020,000 1.550% due 15/03/28 ....... 1,181 0.03
Citibank Credit Card Issuance Trust
USD 4,210,000 1.800% due 20/09/21 ....... 4,169 0.12 3,535,000 1.920% due 07/04/22 ....... 3,480 0.10 Citigroup Inc
EUR 2,285,000 1.375% due 27/10/21 ....... 2,746 0.08 USD 5,637,000 3.397% due 08/12/21 ....... 5,738 0.17
1,225,000 3.700% due 12/01/26 ....... 1,190 0.03 3,135,000 3.400% due 01/05/26 ....... 2,984 0.09
EUR 965,000 1.500% due 24/07/26 ....... 1,116 0.03 USD 5,015,000 3.200% due 21/10/26 ....... 4,686 0.14
950,000 3.887% due 10/01/28 ....... 923 0.03
Principal Amount
Fair Value USD ‘000
Fund %
Citigroup Mortgage Loan Trust
1,996,048 2.376% due 25/09/36 ...... 1,523 0.04 USD 494,314 2.356% due 25/12/36 ...... 492 0.01
446,746 2.616% due 25/11/46 ...... 438 0.01
Citigroup Mortgage Loan Trust Inc
670,459 2.476% due 25/03/37 ...... 615 0.02
Cleco Corporate Holdings LLC
4,936,000 4.973% due 01/05/46 ...... 4,872 0.14 CME Group Inc
800,000 3.750% due 15/06/28 .......... 801 0.02 CMS Energy Corp 4,462,000 3.875% due 01/03/24 ...... 4,447 0.13 3,155,000 3.600% due 15/11/25 ...... 3,067 0.09 6,945,000 2.950% due 15/02/27 ...... 6,382 0.19
CNA Financial Corp 9,810,000 3.950% due 15/05/24 ...... 9,752 0.28
Coca-Cola Co EUR 1,326,000 1.125% due 09/03/27 ...... 1,543 0.05
Columbia Property Trust Operating Partnership LP
USD 200,000 4.150% due 01/04/25 ...... 195 0.01 Comcast Corp 5,050,000 3.375% due 15/08/25 ...... 4,881 0.14 300,000 3.150% due 01/03/26 ...... 284 0.01 100,000 2.350% due 15/01/27 ...... 88 0.00 200,000 3.300% due 01/02/27 ...... 189 0.01 500,000 4.600% due 15/08/45 ...... 491 0.01 3,501,000 4.000% due 15/08/47 ...... 3,145 0.09 300,000 4.000% due 01/03/48 ...... 270 0.01 655,000 3.999% due 01/11/49 ...... 584 0.02 620,000 4.049% due 01/11/52 ...... 551 0.02 Concho Resources Inc 100,000 3.750% due 01/10/27 ...... 96 0.00 800,000 4.300% due 15/08/28 ...... 798 0.02
ConocoPhillips Co 3,460,000 3.214% due 15/05/22 ...... 3,529 0.10
Consolidated Edison Co of New York Inc
60,000 3.850% due 15/06/46 ...... 56 0.00 Consolidated Edison Inc
2,455,000 2.000% due 15/03/20 ...... 2,415 0.07 Constellation Brands Inc 100,000 4.250% due 01/05/23 ...... 101 0.00 3,425,000 3.500% due 09/05/27 ...... 3,205 0.09
Continental Airlines Pass Through Trust
883,522 7.250% due 10/11/19 ...... 918 0.03 565,430 4.150% due 11/04/24 ...... 571 0.02 1,004,321 4.000% due 29/10/24 ...... 1,006 0.03
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 120 Russell Investments Global Credit Fund
Principal Amount
Fair Value USD ‘000
Fund %
Countrywide Asset-Backed Certificates
200,000 2.876% due 25/12/35 ....... 202 0.01 63,849 2.456% due 25/03/36 ....... 58 0.00 282,328 2.356% due 25/07/37 ....... 251 0.01 177,130 2.356% due 25/06/47 ....... 163 0.00
Covey Park Energy LLC / Covey Park Finance Corp
100,000 7.500% due 15/05/25 ....... 102 0.00 Cox Communications Inc 1,200,000 3.250% due 15/12/22 ....... 1,167 0.03 300,000 3.350% due 15/09/26 ....... 279 0.01
CPG Merger Sub LLC 1,200,000 8.000% due 01/10/21 ....... 1,220 0.04
CRH America Finance Inc 600,000 3.950% due 04/04/28 ....... 582 0.02
Crown Americas LLC 200,000 4.750% due 01/02/26 ....... 192 0.01
Crown Castle International Corp
1,150,000 3.400% due 15/02/21 ....... 1,148 0.03 300,000 4.450% due 15/02/26 ....... 302 0.01 Crown Castle Towers LLC 9,760,000 3.720% due 15/07/23 ....... 9,784 0.29 300,000 4.241% due 15/07/28 ....... 304 0.01
CSC Holdings LLC 600,000 10.125% due 15/01/23 ..... 658 0.02 CSX Corp 3,013,000 4.250% due 01/06/21 ....... 3,079 0.09 1,290,000 4.300% due 01/03/48 ....... 1,268 0.04 CVS Health Corp 3,825,000 2.125% due 01/06/21 ....... 3,694 0.11 2,005,000 3.500% due 20/07/22 ....... 1,991 0.06 3,900,000 4.100% due 25/03/25 ....... 3,895 0.11 2,680,000 4.780% due 25/03/38 ....... 2,676 0.08 5,050,000 5.050% due 25/03/48 ....... 5,185 0.15
CVS Pass-Through Trust 382,413 6.943% due 10/01/30 ....... 427 0.01
CWHEQ Revolving Home Equity Loan Trust
711,460 2.348% due 15/04/32 ....... 700 0.02 DAE Funding LLC
100,000 5.000% due 01/08/24 ....... 98 0.00 DB Master Finance LLC
12,722,858 4.030% due 20/11/47 ....... 12,510 0.36
DCP Midstream Operating LP
3,000,000 5.850% due 21/05/43 ....... 2,790 0.08 Dell International LLC 5,000,000 4.420% due 15/06/21 ....... 5,079 0.15 2,013,000 8.350% due 15/07/46 ....... 2,513 0.07
Diamondback Energy Inc 5,045,000 4.750% due 01/11/24 ....... 5,064 0.15
Principal Amount
Fair Value USD ‘000
Fund %
Digital Euro Finco LLC EUR 200,000 2.625% due 15/04/24 ...... 246 0.01 Digital Realty Trust LP USD 300,000 3.400% due 01/10/20 ...... 300 0.01 Digital Stout Holding LLC GBP 500,000 4.250% due 17/01/25 ...... 703 0.02 Discover Bank USD 6,665,000 3.100% due 04/06/20 ...... 6,626 0.19
Discovery Communications LLC
755,000 2.750% due 15/11/19 ...... 750 0.02 455,000 2.800% due 15/06/20 ...... 451 0.01 1,300,000 3.950% due 20/03/28 ...... 1,237 0.04 2,567,000 4.950% due 15/05/42 ...... 2,425 0.07
DISH DBS Corp 200,000 5.875% due 15/07/22 ...... 196 0.01
Doctors Co 500,000 6.500% due 15/10/23 ...... 535 0.02
Dominion Energy Gas Holdings LLC
1,000,000 2.934% due 15/06/21 ...... 1,000 0.03
Domino's Pizza Master Issuer LLC
9,900,000 3.585% due 25/07/47 ...... 9,949 0.29 5,516,175 4.116% due 25/07/48 ...... 5,491 0.16 6,982,500 4.328% due 25/07/48 ...... 6,916 0.20
DR Horton Inc 300,000 4.750% due 15/02/23 ...... 308 0.01
DTE Energy Co 13,744,000 2.850% due 01/10/26 ...... 12,623 0.37 Duke Energy Corp 400,000 2.819% due 14/05/21 ...... 401 0.01 1,100,000 2.650% due 01/09/26 ...... 996 0.03 4,425,000 3.150% due 15/08/27 ...... 4,123 0.12 4,310,000 3.750% due 01/09/46 ...... 3,803 0.11
E*TRADE Financial Corp 200,000 4.500% due 20/06/28 ...... 201 0.01
Ecolab Inc EUR 200,000 1.000% due 15/01/24 ...... 235 0.01 Edison International USD 3,225,000 2.400% due 15/09/22 ...... 3,057 0.09 Elanco Animal Health Inc
3,090,000 4.900% due 28/08/28 .......... 3,143 0.09 Emera US Finance LP 805,000 2.700% due 15/06/21 ...... 782 0.02 6,040,000 4.750% due 15/06/46 ...... 5,908 0.17
Enable Midstream Partners LP
2,748,000 4.400% due 15/03/27 ...... 2,642 0.08 3,180,000 5.000% due 15/05/44 ...... 2,872 0.08 Enbridge Energy Partners LP 1,550,000 4.375% due 15/10/20 ...... 1,573 0.05 4,030,000 7.375% due 15/10/45 ...... 5,344 0.16
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 121
Principal Amount
Fair Value USD ‘000
Fund %
Energy Transfer Partners LP 2,715,000 4.150% due 01/10/20 ....... 2,751 0.08 900,000 4.050% due 15/03/25 ....... 882 0.03 895,000 5.150% due 15/03/45 ....... 848 0.02 3,090,000 6.125% due 15/12/45 ....... 3,307 0.10
Energy Transfer Partners LP / Regency Energy Finance Corp
700,000 5.750% due 01/09/20 ....... 724 0.02
Entergy Gulf States Louisiana LLC
900,000 3.950% due 01/10/20 ....... 909 0.03 500,000 5.590% due 01/10/24 ....... 544 0.02
Enterprise Products Operating LLC
2,145,000 5.100% due 15/02/45 ....... 2,268 0.07 1,518,000 4.250% due 15/02/48 ....... 1,435 0.04
EPR Properties 1,200,000 4.500% due 01/04/25 ....... 1,188 0.03 EQT Corp 500,000 3.000% due 01/10/22 ....... 485 0.01 2,100,000 3.900% due 01/10/27 ....... 1,971 0.06 EQT Midstream Partners LP 5,805,000 4.750% due 15/07/23 ....... 5,897 0.17 800,000 4.000% due 01/08/24 ....... 765 0.02 100,000 4.125% due 01/12/26 ....... 94 0.00 3,420,000 5.500% due 15/07/28 ....... 3,521 0.10 3,540,000 6.500% due 15/07/48 ....... 3,765 0.11
Equinix Inc EUR 550,000 2.875% due 15/03/24 ....... 648 0.02 ERAC USA Finance LLC USD 1,529,000 4.500% due 15/02/45 ....... 1,444 0.04 Essex Portfolio LP
500,000 3.625% due 01/05/27 ....... 478 0.01 Evergy Inc
800,000 4.850% due 01/06/21 ....... 817 0.02 Eversource Energy
645,000 2.750% due 15/03/22 ....... 632 0.02 Express Scripts Holding Co
380,000 2.600% due 30/11/20 ....... 374 0.01 Fannie Mae Pool 2,900,000 3.000% due 13/11/48 ....... 2,772 0.08 21,000,000 3.500% due 13/11/48 ....... 20,644 0.60
FedEx Corp 5,375,000 4.550% due 01/04/46 ....... 5,285 0.15
Fidelity National Financial Inc
8,065,000 4.500% due 15/08/28 ....... 7,925 0.23
First American Financial Corp
100,000 4.300% due 01/02/23 ....... 99 0.00 100,000 4.600% due 15/11/24 ....... 100 0.00
Principal Amount
Fair Value USD ‘000
Fund %
Five Corners Funding Trust 5,580,000 4.419% due 15/11/23 ...... 5,733 0.17
Florida Gas Transmission Co LLC
400,000 3.875% due 15/07/22 ...... 401 0.01
Ford Credit Auto Owner Trust
592,266 2.228% due 15/05/20 ...... 592 0.02 3,560,913 1.800% due 15/09/20 ...... 3,555 0.10
Ford Motor Co 3,618,000 5.291% due 08/12/46 ...... 3,234 0.09 Ford Motor Credit Co LLC 4,982,000 2.681% due 09/01/20 ...... 4,932 0.14 3,075,000 8.125% due 15/01/20 ...... 3,250 0.09 500,000 3.157% due 04/08/20 ...... 495 0.01 3,000,000 2.343% due 02/11/20 ...... 2,917 0.09 350,000 5.750% due 01/02/21 ...... 364 0.01 800,000 3.428% due 03/08/22 ...... 792 0.02
Fortune Brands Home & Security Inc
700,000 3.000% due 15/06/20 ...... 694 0.02
Freddie Mac Structured Pass-Through Certificates
19,178 2.346% due 25/08/31 ...... 19 0.00 Freedom Mortgage Corp 100,000 8.125% due 15/11/24 ...... 98 0.00 900,000 8.250% due 15/04/25 ...... 878 0.03
Fremont Home Loan Trust 1,135,256 2.316% due 25/08/36 ...... 531 0.02
GATX Corp 100,000 3.061% due 05/11/21 ...... 100 0.00
General Dynamics Corp 5,265,000 2.875% due 11/05/20 ...... 5,254 0.15 General Electric Co 350,000 2.700% due 09/10/22 ...... 338 0.01
EUR 1,005,000 0.875% due 17/05/25 ...... 1,142 0.03 370,000 2.125% due 17/05/37 ...... 396 0.01
USD 2,408,000 5.875% due 14/01/38 ...... 2,693 0.08 287,000 6.875% due 10/01/39 ...... 359 0.01 1,960,000 4.125% due 09/10/42 ...... 1,752 0.05 General Mills Inc 8,901,000 2.200% due 21/10/19 ...... 8,838 0.26 1,518,000 4.550% due 17/04/38 ...... 1,460 0.04 1,518,000 4.700% due 17/04/48 ...... 1,462 0.04 General Motors Co 600,000 3.143% due 07/08/20 .......... 602 0.02 3,870,000 5.400% due 01/04/48 .......... 3,625 0.11
General Motors Financial Co Inc
7,500,000 3.150% due 15/01/20 ...... 7,489 0.22 1,300,000 3.450% due 14/01/22 ...... 1,283 0.04
Gerdau Holdings Inc 200,000 7.000% due 20/01/20 ...... 209 0.01
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 122 Russell Investments Global Credit Fund
Principal Amount
Fair Value USD ‘000
Fund %
GLP Financing II Inc 400,000 5.250% due 01/06/25 ....... 408 0.01 100,000 5.375% due 15/04/26 ....... 102 0.00 100,000 5.750% due 01/06/28 ....... 103 0.00 Goldman Sachs Group Inc 6,465,000 5.750% due 24/01/22 ....... 6,881 0.20 1,000,000 3.366% due 05/06/23 ....... 1,012 0.03 2,100,000 2.905% due 24/07/23 ....... 2,031 0.06
EUR 1,104,000 1.375% due 15/05/24 ....... 1,293 0.04 USD 655,000 3.500% due 23/01/25 ....... 635 0.02
1,560,000 3.750% due 22/05/25 ....... 1,530 0.04 12,440,000 4.223% due 01/05/29 ....... 12,282 0.36
400,000 7.375% due 01/04/20 ...... 409 0.01 800,000 7.500% due 15/04/21 ...... 822 0.02 700,000 6.875% due 15/04/22 ...... 707 0.02 4,760,000 7.250% due 15/08/24 ...... 4,641 0.14
Jefferies Group LLC 3,200,000 6.500% due 20/01/43 ...... 3,305 0.10
Jimmy Johns Funding LLC 7,099,061 4.846% due 30/07/47 ...... 7,092 0.21 JM Smucker Co 7,500,000 2.200% due 06/12/19 ...... 7,425 0.22 8,003,000 2.500% due 15/03/20 ...... 7,929 0.23 John Deere Capital Corp 1,060,000 2.350% due 08/01/21 ...... 1,042 0.03 1,290,000 2.568% due 08/01/21 ...... 1,290 0.04 5,155,000 2.807% due 08/09/22 ...... 5,164 0.15 JPMorgan Chase & Co
EUR 1,064,000 0.625% due 25/01/24 ...... 1,219 0.04 USD 8,725,000 3.797% due 23/07/24 ...... 8,719 0.25 EUR 184,000 1.500% due 27/01/25 ...... 219 0.01 USD 625,000 3.900% due 15/07/25 ...... 625 0.02
1,040,000 3.200% due 15/06/26 ...... 987 0.03 2,300,000 3.509% due 23/01/29 ...... 2,181 0.06 12,205,000 4.203% due 23/07/29 ...... 12,183 0.36 850,000 3.897% due 23/01/49 ...... 769 0.02
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 123
Principal Amount
Fair Value USD ‘000
Fund %
Keurig Dr Pepper Inc 5,500,000 3.551% due 25/05/21 ....... 5,493 0.16 3,280,000 4.597% due 25/05/28 ....... 3,302 0.10 1,810,000 4.985% due 25/05/38 ....... 1,837 0.05
Kilroy Realty LP 1,000,000 4.375% due 01/10/25 ....... 999 0.03
Kinder Morgan Energy Partners LP
4,710,000 5.000% due 01/03/43 ....... 4,626 0.13 Kinder Morgan Inc 800,000 3.050% due 01/12/19 ....... 799 0.02 3,625,000 5.050% due 15/02/46 ....... 3,640 0.11
Kinetic Concepts Inc / KCI USA Inc
150,000 12.500% due 01/11/21 ..... 166 0.00 Kraft Heinz Foods Co 7,979,000 2.800% due 02/07/20 ....... 7,914 0.23 1,700,000 3.161% due 10/08/22 ....... 1,710 0.05
EUR 800,000 2.000% due 30/06/23 ....... 975 0.03 GBP 855,000 4.125% due 01/07/27 ....... 1,190 0.03 EUR 2,824,000 2.250% due 25/05/28 ....... 3,309 0.10 USD 9,104,000 4.375% due 01/06/46 ....... 8,071 0.24
Kroger Co 1,775,000 4.450% due 01/02/47 ....... 1,632 0.05 2,480,000 4.650% due 15/01/48 ....... 2,346 0.07 Lazard Group LLC 100,000 4.250% due 14/11/20 ....... 102 0.00 900,000 3.750% due 13/02/25 ....... 869 0.03
Lehman Mortgage Trust 76,023 2.716% due 25/09/36 ....... 56 0.00
Liberty Mutual Group Inc 2,450,000 4.850% due 01/08/44 ....... 2,459 0.07
LoanCore Capital Markets LLC / JLC Finance Corp
200,000 6.875% due 01/06/20 ....... 203 0.01 Lockheed Martin Corp 3,860,000 2.500% due 23/11/20 ....... 3,808 0.11 2,505,000 4.090% due 15/09/52 ....... 2,396 0.07
Long Beach Mortgage Loan Trust
583,385 2.736% due 25/08/45 ....... 570 0.02 Marathon Oil Corp
100,000 4.400% due 15/07/27 ....... 100 0.00 Marriott International Inc
1,100,000 2.300% due 15/01/22 ....... 1,056 0.03 Marsh & McLennan Cos Inc
1,300,000 3.500% due 10/03/25 ....... 1,267 0.04 Masco Corp
500,000 3.500% due 01/04/21 ....... 500 0.01
Massachusetts Mutual Life Insurance Co
2,423,000 4.900% due 01/04/77 ....... 2,398 0.07
Principal Amount
Fair Value USD ‘000
Fund %
MASTR Alternative Loan Trust
60,998 2.616% due 25/03/35 ...... 60 0.00
Mastr Asset Backed Securities Trust
275,989 2.346% due 25/10/36 ...... 175 0.01 McDonald's Corp 5,250,000 2.200% due 26/05/20 ...... 5,178 0.15 3,230,000 4.450% due 01/09/48 ...... 3,180 0.09
McKesson Corp 1,125,000 3.950% due 16/02/28 ...... 1,088 0.03
Medtronic Inc 2,315,000 3.500% due 15/03/25 ...... 2,298 0.07
500,000 5.625% due 01/05/24 ...... 514 0.02 MGM Resorts International 200,000 6.000% due 15/03/23 ...... 207 0.01 600,000 5.750% due 15/06/25 ...... 605 0.02 Mid-America Apartments LP 160,000 4.300% due 15/10/23 ...... 162 0.00 600,000 4.000% due 15/11/25 ...... 591 0.02
Mississippi Power Co 3,951,000 3.950% due 30/03/28 ...... 3,874 0.11
Mohawk Industries Inc 200,000 3.850% due 01/02/23 ...... 200 0.01
Molson Coors Brewing Co 4,965,000 4.200% due 15/07/46 ...... 4,416 0.13 Moody's Corp
EUR 1,330,000 1.750% due 09/03/27 ...... 1,592 0.05 USD 300,000 3.250% due 15/01/28 ...... 281 0.01
Morgan Stanley EUR 1,140,000 Zero Coupon due 21/05/21 1,325 0.04 USD 600,000 3.277% due 22/07/22 ...... 605 0.02 EUR 2,370,000 1.750% due 11/03/24 ...... 2,843 0.08 USD 1,105,000 3.125% due 27/07/26 ...... 1,031 0.03
1,900,000 3.625% due 20/01/27 ...... 1,826 0.05 GBP 9,710,000 2.625% due 09/03/27 ...... 12,394 0.36 USD 5,290,000 3.772% due 24/01/29 ...... 5,084 0.15
Morgan Stanley ABS Capital I Inc Trust
844,439 2.446% due 25/02/37 ...... 418 0.01
Morgan Stanley Home Equity Loan Trust
43,410 2.316% due 25/04/37 ...... 29 0.00 Motorola Solutions Inc 200,000 3.500% due 01/09/21 ...... 199 0.01 3,482,000 5.500% due 01/09/44 ...... 3,280 0.10
MPLX LP 3,645,000 4.700% due 15/04/48 ...... 3,410 0.10
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 124 Russell Investments Global Credit Fund
Principal Amount
Fair Value USD ‘000
Fund %
MPT Operating Partnership LP / MPT Finance Corp
EUR 4,470,000 4.000% due 19/08/22 ....... 5,700 0.17
National Grid North America Inc
1,200,000 1.000% due 12/07/24 ....... 1,390 0.04
Nationwide Mutual Insurance Co
USD 500,000 9.375% due 15/08/39 ....... 775 0.02 Nestle Holdings Inc 1,795,000 1.875% due 09/03/21 ....... 1,744 0.05
EUR 465,000 0.875% due 18/07/25 ....... 543 0.02 Newell Brands Inc USD 3,519,000 5.500% due 01/04/46 ....... 3,360 0.10 Newfield Exploration Co
100,000 5.375% due 01/01/26 ....... 104 0.00 NiSource Inc 1,025,000 5.250% due 15/02/43 ....... 1,088 0.03 4,746,000 4.375% due 15/05/47 ....... 4,550 0.13
Nissan Auto Receivables Owner Trust
3,745,108 1.890% due 15/10/20 ....... 3,731 0.11 297,403 2.248% due 15/12/20 ....... 297 0.01 297,403 2.390% due 15/12/20 ....... 297 0.01
Nissan Motor Acceptance Corp
600,000 3.227% due 13/01/22 ....... 606 0.02 Noble Energy Inc
1,631,000 5.250% due 15/11/43 ....... 1,614 0.05 Northrop Grumman Corp
5,075,000 4.030% due 15/10/47 ....... 4,779 0.14
Northwestern Mutual Life Insurance Co
2,565,000 3.850% due 30/09/47 ....... 2,357 0.07 Nuveen Finance LLC
1,335,000 2.950% due 01/11/19 ....... 1,334 0.04
Omega Healthcare Investors Inc
400,000 4.500% due 15/01/25 ....... 393 0.01 ONEOK Inc
1,800,000 4.550% due 15/07/28 ....... 1,812 0.05 Oracle Corp 1,421,000 1.900% due 15/09/21 ....... 1,373 0.04 575,000 4.000% due 15/07/46 ....... 549 0.02 2,153,000 4.000% due 15/11/47 ....... 2,050 0.06
Owens Corning 300,000 4.200% due 15/12/22 ....... 301 0.01
PACCAR Financial Corp 1,600,000 2.800% due 01/03/21 ....... 1,584 0.05 Pacific Gas & Electric Co 600,000 4.250% due 01/08/23 ....... 604 0.02 890,000 3.750% due 15/02/24 ....... 870 0.03
Principal Amount
Fair Value USD ‘000
Fund %
3,115,000 3.300% due 15/03/27 ...... 2,871 0.08 400,000 3.300% due 01/12/27 ...... 366 0.01 1,200,000 4.750% due 15/02/44 ...... 1,172 0.03 1,895,000 3.950% due 01/12/47 ...... 1,654 0.05
Peachtree Corners Funding Trust
6,426,000 3.976% due 15/02/25 ...... 6,250 0.18 Pfizer Inc EUR 160,000 Zero Coupon due 06/03/20 186 0.01 Physicians Realty LP USD 500,000 3.950% due 15/01/28 ...... 468 0.01
Pioneer Natural Resources Co
500,000 3.450% due 15/01/21 ...... 500 0.01
Plains All American Pipeline LP
8,000,000 5.750% due 15/01/20 ...... 8,209 0.24 800,000 3.600% due 01/11/24 ...... 771 0.02 4,045,000 4.650% due 15/10/25 ...... 4,093 0.12 100,000 5.150% due 01/06/42 ...... 95 0.00 5,283,000 4.700% due 15/06/44 ...... 4,775 0.14
Planet Fitness Master Issuer LLC
6,420,000 4.666% due 05/09/48 ...... 6,367 0.19 Post Holdings Inc
100,000 5.500% due 01/03/25 ...... 100 0.00 Progress Energy Inc
5,771,000 3.150% due 01/04/22 ...... 5,678 0.17 Prologis LP EUR 2,600,000 1.375% due 13/05/21 ...... 2,926 0.09
EUR 23,000 2.875% due 24/07/37 ....... 27 0.00 1,671,000 2.875% due 24/07/37 ....... 1,981 0.06 Time Warner Cable LLC
USD 600,000 5.000% due 01/02/20 ....... 613 0.02 200,000 7.300% due 01/07/38 ....... 230 0.01 100,000 6.750% due 15/06/39 ....... 109 0.00
GBP 1,000,000 5.250% due 15/07/42 ....... 1,433 0.04 USD 1,605,000 4.500% due 15/09/42 ....... 1,374 0.04
Toyota Auto Receivables Owner Trust
3,894,826 1.740% due 17/08/20 ....... 3,880 0.11
Toyota Auto ReceivablesOwner Trust
3,575,000 2.100% due 15/10/20 ....... 3,565 0.10 Toyota Motor Credit Corp 2,300,000 2.459% due 14/11/19 ....... 2,302 0.07 5,725,000 3.023% due 11/01/22 ....... 5,794 0.17 500,000 2.712% due 17/05/22 ....... 501 0.01
Tyson Foods Inc 420,000 4.550% due 02/06/47 ....... 392 0.01 U.S. Treasury Bonds 5,738,700 2.875% due 15/05/28 ....... 5,653 0.16 21,852,000 2.875% due 15/08/28 ....... 21,519 0.63 1,225,000 4.375% due 15/02/38** ... 1,446 0.04 4,120,000 4.500% due 15/05/38** ... 4,945 0.14 3,000,000 3.500% due 15/02/39 ....... 3,162 0.09 540,000 3.125% due 15/02/42 ....... 535 0.02 585,000 2.500% due 15/02/45 ....... 512 0.01 845,000 3.000% due 15/11/45 ....... 815 0.02 2,887,000 2.500% due 15/02/46 ....... 2,520 0.07 6,976,000 2.500% due 15/05/46 ....... 6,085 0.18 27,000 2.250% due 15/08/46 ....... 22 0.00 1,375,000 2.875% due 15/11/46 ....... 1,293 0.04 580,000 3.000% due 15/02/47 ....... 559 0.02 1,080,500 2.750% due 15/11/47 ....... 989 0.03
Principal Amount
Fair Value USD ‘000
Fund %
1,735,000 3.000% due 15/02/48 ...... 1,670 0.05 10,239,000 3.125% due 15/05/48** .. 10,105 0.29
U.S. Treasury Inflation Indexed Bonds
1,878,634 0.375% due 15/01/27 ...... 1,794 0.05 490,387 0.500% due 15/01/28 ...... 471 0.01 U.S. Treasury Notes 2,300,000 1.625% due 31/05/23 ...... 2,169 0.06 600,000 2.125% due 15/05/25*** 568 0.02
U.S. Treasury Strip Principal 8,600,000 Zero Coupon due 15/05/44 3,816 0.11
UDR Inc 600,000 2.950% due 01/09/26 ...... 551 0.02
Unilever Capital Corp 2,000,000 3.000% due 07/03/22 ...... 1,981 0.06 Union Pacific Corp 4,320,000 2.250% due 19/06/20 ...... 4,264 0.12 2,395,000 4.800% due 10/09/58 ...... 2,487 0.07 United Parcel Service Inc 4,815,000 2.050% due 01/04/21 ...... 4,690 0.14 1,380,000 3.750% due 15/11/47 ...... 1,285 0.04 United Technologies Corp 9,901,000 1.900% due 04/05/20 ...... 9,703 0.28 1,555,000 4.125% due 16/11/28 ...... 1,548 0.05 UnitedHealth Group Inc 4,500,000 1.950% due 15/10/20 ...... 4,407 0.13 5,625,000 3.375% due 15/04/27 ...... 5,471 0.16 1,000,000 3.850% due 15/06/28 ...... 1,004 0.03 375,000 3.750% due 15/10/47 ...... 350 0.01
Unum Group 525,000 5.750% due 15/08/42 ...... 552 0.02
US Airways Pass Through Trust
138,267 5.900% due 01/10/24 ...... 149 0.00 857,059 4.625% due 03/06/25 ...... 878 0.03 223,102 3.950% due 15/11/25 ...... 221 0.01
US Bancorp EUR 300,000 0.850% due 07/06/24 .......... 347 0.01 US Bank NA USD 7,000,000 2.487% due 23/10/20 ...... 6,999 0.20 USAA Capital Corp
800,000 2.450% due 01/08/20 ...... 789 0.02
VEREIT Operating Partnership LP
100,000 4.125% due 01/06/21 ...... 101 0.00 200,000 4.875% due 01/06/26 ...... 202 0.01 5,850,000 3.950% due 15/08/27 ...... 5,512 0.16
Verizon Communications Inc
2,075,000 2.860% due 22/05/20 ...... 2,087 0.06 4,639,000 3.376% due 15/02/25 ...... 4,509 0.13 715,000 4.329% due 21/09/28 ...... 720 0.02
EUR 400,000 2.875% due 15/01/38 ...... 467 0.01
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 127
Principal Amount
Fair Value USD ‘000
Fund %
USD 1,420,000 3.850% due 01/11/42 ....... 1,233 0.04 625,000 4.125% due 15/08/46 ....... 563 0.02 623,000 4.862% due 21/08/46 ....... 624 0.02 3,840,000 4.672% due 15/03/55 ....... 3,625 0.11
VF Corp EUR 1,282,000 0.625% due 20/09/23 ....... 1,483 0.04 ViaSat Inc USD 100,000 5.625% due 15/09/25 ....... 95 0.00 Vistra Energy Corp
187,111 8.034% due 02/02/24 ....... 198 0.01 Vistra Operations Co LLC
1,943,000 5.500% due 01/09/26 ....... 1,967 0.06 VMware Inc 1,300,000 2.950% due 21/08/22 ....... 1,252 0.04 700,000 3.900% due 21/08/27 ....... 663 0.02
Voya Financial Inc 1,275,000 4.800% due 15/06/46 ....... 1,262 0.04
Walgreens Boots Alliance Inc
2,500,000 4.650% due 01/06/46 ....... 2,400 0.07 Walmart Inc 1,245,000 2.596% due 23/06/21 ....... 1,252 0.04 810,000 4.050% due 29/06/48 ....... 813 0.02 Walt Disney Co 7,375,000 1.950% due 04/03/20 ....... 7,276 0.21 6,350,000 2.451% due 04/03/20 ....... 6,359 0.19 Warner Media LLC 1,470,000 4.700% due 15/01/21 ....... 1,510 0.04 1,200,000 5.350% due 15/12/43 ....... 1,188 0.03
Washington Mutual Mortgage Pass-Through Certificates WMALT Trust
346,311 2.595% due 25/02/47 ....... 312 0.01 Washington Prime Group LP
800,000 5.950% due 15/08/24 ....... 758 0.02 WAVE Trust
6,916,301 3.844% due 15/11/42 ....... 6,824 0.20
Westfield UK & Europe Finance Plc
1,400,000 3.250% due 05/10/20 ....... 1,396 0.04 400,000 3.750% due 17/09/24 ....... 394 0.01 WEC Energy Group Inc 1,315,000 3.375% due 15/06/21 ....... 1,316 0.04 5,781,000 3.550% due 15/06/25 ....... 5,684 0.17 Wells Fargo & Co 100,000 2.625% due 22/07/22 ....... 97 0.00 1,700,000 3.452% due 24/01/23 ....... 1,722 0.05
EUR 804,000 2.250% due 02/05/23 ....... 995 0.03 USD 200,000 3.300% due 09/09/24 ....... 194 0.01
350,000 3.000% due 19/02/25 ....... 332 0.01 EUR 565,000 1.625% due 02/06/25 ....... 670 0.02 USD 800,000 3.550% due 29/09/25 ....... 780 0.02
Principal Amount
Fair Value USD ‘000
Fund %
700,000 3.000% due 22/04/26 ...... 652 0.02 8,525,000 3.000% due 23/10/26 ...... 7,919 0.23
EUR 1,075,000 1.375% due 26/10/26 ...... 1,231 0.04 USD 6,393,000 3.584% due 22/05/28 ...... 6,141 0.18 Wells Fargo Bank NA
6,000,000 2.660% due 25/03/20 ...... 6,001 0.18
Wells Fargo Mortgage Loan Trust
4,401 3.148% due 27/08/35 ...... 4 0.00 Wendy's Funding LLC
11,890,150 3.884% due 15/03/48 ...... 11,428 0.33 Western Gas Partners LP
540,000 5.500% due 15/08/48 ...... 511 0.01 WestRock Co 400,000 3.000% due 15/09/24 ...... 379 0.01 1,100,000 3.750% due 15/03/25 ...... 1,083 0.03 Weyerhaeuser Co 400,000 7.125% due 15/07/23 ...... 450 0.01 300,000 8.500% due 15/01/25 ...... 368 0.01 1,400,000 7.375% due 15/03/32 ...... 1,775 0.05
Williams Partners LP 6,765,000 5.100% due 15/09/45 ...... 6,825 0.20 WP Carey Inc 400,000 4.600% due 01/04/24 ...... 404 0.01 300,000 4.250% due 01/10/26 ...... 292 0.01
Wyndham Destinations Inc 1,300,000 4.250% due 01/03/22 ...... 1,267 0.04
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp
1,000,000 4.250% due 30/05/23 ...... 960 0.03 Xcel Energy Inc 5,530,000 4.700% due 15/05/20 ...... 5,629 0.16 711,000 2.600% due 15/03/22 ...... 690 0.02 10,453,000 3.350% due 01/12/26 ...... 10,046 0.29 3,865,000 4.000% due 15/06/28 ...... 3,880 0.11
Zimmer Biomet Holdings Inc
3,537,000 2.700% due 01/04/20 ...... 3,504 0.10 Zoetis Inc
600,000 4.500% due 13/11/25 ...... 621 0.02 1,548,262 45.12 Virgin Islands, British (1.55%)
700,000 4.750% due 17/09/23 ....... 688 0.02 SF Holding Investment Ltd
3,720,000 4.125% due 26/07/23 ....... 3,705 0.11
Sinopec Group Overseas Development 2014 Ltd
1,800,000 4.375% due 10/04/24 ....... 1,827 0.05
State Grid Overseas Investment 2016 Ltd
400,000 2.250% due 04/05/20 ....... 392 0.01 EUR 9,262,000 1.250% due 19/05/22 ....... 10,950 0.32
1,400,000 2.125% due 02/05/30 ....... 1,635 0.05
Want Want China Finance Ltd
USD 11,410,000 2.875% due 27/04/22 ....... 10,993 0.32 53,179 1.55
Total Long Term Bonds and Notes ............................ 2,895,921 84.39
Short Term Investments (6.15%) Argentina (0.03%)
Banco Santander Rio SA ARS 45,000,000 25.500% due 17/07/19 ..... 1,039 0.03
Bermuda (0.14%)
Novartis Securities Investment Ltd
4,930,000 5.125% due 10/02/19 ....... 4,973 0.14 Brazil (0.02%)
Centrais Eletricas Brasileiras SA
USD 600,000 6.875% due 30/07/19 ....... 612 0.02 Canada (0.44%)
Ford Credit Canada Co CAD 15,000,000 2.939% due 19/02/19 ....... 11,620 0.34 Province of Quebec Canada EUR 517,000 5.000% due 29/04/19 ....... 619 0.02 Toronto-Dominion Bank USD 2,700,000 2.753% due 18/01/19 ....... 2,703 0.08
14,942 0.44 Cayman Islands (0.01%)
Alpha Star Holding Ltd 200,000 4.970% due 09/04/19 ....... 200 0.01
Principal Amount
Fair Value USD ‘000
Fund %
China (0.02%)
China Uranium Development Co Ltd
800,000 3.500% due 08/10/18 ...... 800 0.02 Denmark (0.01%)
Carlsberg Breweries A/S 250,000 2.625% due 03/07/19 ...... 296 0.01 Finland (0.02%)
Fortum OYJ EUR 174,000 6.000% due 20/03/19 ...... 208 0.01 Nordea Bank Abp
275,000 4.000% due 11/07/19 ...... 330 0.01 538 0.02 France (0.21%)
APRR SA 700,000 0.431% due 31/03/19 ...... 816 0.02
Banque Federative du Credit Mutuel SA
1,300,000 0.250% due 14/06/19 ...... 1,515 0.04 BPCE SA USD 250,000 2.500% due 15/07/19 ...... 249 0.01 Christian Dior SE EUR 1,400,000 1.375% due 19/06/19 ...... 1,636 0.05 Cie de Saint-Gobain
360,000 4.500% due 30/09/19 ...... 437 0.01 Credit Agricole SA
500,000 3.875% due 13/02/19 ...... 590 0.02 Orange SA
UBS AG 6,885,000 2.637% due 07/12/18 ...... 6,888 0.20 Thailand (0.01%)
Siam Commercial Bank PCL 200,000 3.500% due 07/04/19 ...... 200 0.01 United Kingdom (0.08%)
British Telecommunications Plc
EUR 214,000 1.125% due 10/06/19 ...... 251 0.01 Compass Group Plc
1,049,000 3.125% due 13/02/19 ...... 1,233 0.03 Diageo Finance Plc
530,000 1.125% due 20/05/19 ...... 620 0.02 Experian Finance Plc GBP 20,000 4.750% due 23/11/18 ...... 26 0.00 Sky Plc USD 700,000 9.500% due 15/11/18 ...... 706 0.02
2,836 0.08
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 130 Russell Investments Global Credit Fund
Principal Amount
Fair Value USD ‘000
Fund %
United States (2.91%)
21st Century Fox America Inc
3,413,000 6.900% due 01/03/19 ....... 3,470 0.10 Amgen Inc
5,471,000 1.900% due 10/05/19 ....... 5,443 0.16 Becton Dickinson & Co
EUR 1,412,000 0.368% due 06/06/19 ....... 1,644 0.05 USD 4,415,000 2.675% due 15/12/19 ....... 4,392 0.13 BellSouth LLC
2,500,000 4.333% due 26/04/19 ....... 2,519 0.07 Cisco Systems Inc
10,095,000 1.400% due 20/09/19 ....... 9,965 0.29 Dell International LLC
600,000 3.480% due 01/06/19 ....... 602 0.02
Discovery Communications LLC
2,400,000 2.200% due 20/09/19 ....... 2,382 0.07
Federal Home Loan Bank Discount Notes
700,000 2.110% due 17/10/18 ....... 699 0.02 Ford Motor Credit Co LLC
1,500,000 2.021% due 03/05/19 ....... 1,491 0.04
Fresenius Medical Care US Finance II Inc
4,000,000 5.625% due 31/07/19 ....... 4,080 0.12 General Motors Co
300,000 3.500% due 02/10/18 ....... 300 0.01 Goldman Sachs Group Inc EUR 823,000 0.750% due 10/05/19 ....... 961 0.03
Harley-Davidson Financial Services Inc
USD 4,000,000 2.400% due 15/09/19 ....... 3,977 0.12
Honda Auto Receivables Owner Trust
1,171,594 1.230% due 23/09/19 ....... 1,170 0.03 John Deere Capital Corp
1,435,000 2.609% due 15/10/18 ....... 1,435 0.04 JPMorgan Chase & Co
2,665,000 1.850% due 22/03/19 ....... 2,655 0.08 Lockheed Martin Corp
10,249,000 1.850% due 23/11/18 ....... 10,237 0.30 Metropolitan Edison Co
2,100,000 7.700% due 15/01/19 ....... 2,129 0.06 Molson Coors Brewing Co
1,730,000 1.900% due 15/03/19 ....... 1,723 0.05 Navient Corp
700,000 5.500% due 15/01/19 ....... 704 0.02
NextEra Energy Capital Holdings Inc
2,360,000 2.300% due 01/04/19 ....... 2,356 0.07
Principal Amount
Fair Value USD ‘000
Fund %
Norfolk Southern Corp 2,378,000 5.900% due 15/06/19 ...... 2,425 0.07
PepsiCo Inc 3,310,000 1.550% due 02/05/19 ...... 3,288 0.09 Pfizer Inc 6,535,000 2.100% due 15/05/19 ...... 6,518 0.19 5,640,000 1.450% due 03/06/19 ...... 5,595 0.16
Public Service Electric & Gas Co
1,845,000 2.000% due 15/08/19 ...... 1,830 0.05
Reliance Standard Life Global Funding II
200,000 2.500% due 24/04/19 ...... 200 0.01 Sprint Capital Corp
500,000 6.900% due 01/05/19 ...... 509 0.01 Time Warner Cable LLC
200,000 8.250% due 01/04/19 ...... 205 0.01 Tyson Foods Inc
6,958,000 2.650% due 15/08/19 ...... 6,947 0.20 Warner Media LLC
6,500,000 2.100% due 01/06/19 ...... 6,467 0.19
WEA Finance LLC / Westfield UK & Europe Finance Plc
1,650,000 2.700% due 17/09/19 ...... 1,646 0.05 99,964 2.91 Virgin Islands, British (0.08%)
CNPC General Capital Ltd 800,000 2.750% due 14/05/19 ...... 797 0.02
Franshion Brilliant Ltd 300,000 5.750% due 19/03/19 ...... 303 0.01
Poly Real Estate Finance Ltd 1,800,000 5.250% due 25/04/19 ...... 1,813 0.05 2,913 0.08
Total Short Term Investments ........................ 211,113 6.15
Bank Loans (0.03%) Ireland (0.03%)
AWAS Aviation Capital Ltd 1,102,372 4.870% due 03/10/21 ...... 1,105 0.03 Total Bank Loans .............. 1,105 0.03
Total Transferable Securities ........................... 3,108,139 90.57
Certificates of Deposit (1.01%) Canada (0.45%) Bank of Nova Scotia 4,000,000 2.765% due 30/11/18 ...... 4,009 0.12 4,700,000 2.606% due 30/12/19 ...... 4,696 0.14
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 131
Principal Amount
Fair Value USD ‘000
Fund %
Canadian Imperial Bank of Commerce
3,000,000 2.573% due 07/02/19 ....... 3,001 0.09 3,610,000 2.800% due 02/05/20 ....... 3,610 0.10 15,316 0.45 France (0.09%)
Credit Agricole Corporate & Investment Bank
3,000,000 2.689% due 30/07/20 ....... 3,000 0.09 Japan (0.20%)
Mizuho Bank Ltd 6,750,000 2.796% due 01/10/19 ....... 6,749 0.20 Sweden (0.15%) Svenska Handelsbanken 1,500,000 2.294% due 02/10/18 ....... 1,499 0.04 3,690,000 2.617% due 21/10/19 ....... 3,690 0.11 5,189 0.15 Switzerland (0.12%)
Credit Suisse AG 4,250,000 2.508% due 16/01/19 ....... 4,250 0.12
Total Certificates of Deposit ................................ 34,504 1.01
Commercial Paper (1.31%) Australia (0.43%)
Commonwealth Bank of Australia
8,500,000 2.097% due 11/10/18 ....... 8,500 0.25 Westpac Banking Corp
PSP Capital Inc 2,500,000 Zero Coupon due 30/08/19 2,500 0.07 France (0.32%)
BPCE 5,500,000 Zero Coupon due 18/01/19 5,457 0.16
Sanofi 5,450,000 Zero Coupon due 21/11/18 5,432 0.16 10,889 0.32
Principal Amount
Fair Value USD ‘000
Fund %
Jersey, Channel Islands (0.00%)
Cancara Asset Securitisation Ltd
- Zero Coupon due 23/10/18 5 0.00 United Kingdom (0.15%) HSBC Bank Plc 3,400,000 1.000% due 10/04/19 ...... 3,400 0.10 Reckitt Benckiser Treasury 1,650,000 Zero Coupon due 06/03/19 1,630 0.05 5,030 0.15 United States (0.34%) Barton Capital SA 1,100,000 1.000% due 01/10/18 ...... 1,100 0.03 Cafco LLC - Zero Coupon due 01/10/18 5 0.00
Collateralized Commercial Paper II
1,000,000 Zero Coupon due 03/01/19 1,000 0.03 ING US Funding LLC 7,920,000 Zero Coupon due 12/04/19 7,920 0.23 Sheffield Receivable 1,700,000 Zero Coupon due 05/11/18 1,696 0.05 11,721 0.34 Total Commercial Paper .. 44,935 1.31
Number of Shares Investment Funds (3.58%) Ireland (3.58%)
7,943
Russell Investment Company III plc Russell Investments Euro Liquidity Fund - Class R Roll-Up Shares ................ 9,129 0.27
3,729
Russell Investment Company III plc Russell Investments Sterling Liquidity Fund - Class R Roll-Up Shares ...... 4,914 0.14
105,507
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 108,687 3.17
Total Investment Funds .... 122,730 3.58
Total Investments excluding Financial Derivative Instruments ..... 3,310,308 96.47
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 132 Russell Investments Global Credit Fund
Financial Derivative Instruments (0.28%) Open Futures Contracts ((0.14)%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
(132) (1.32)
1 of 10 Year Mini JGB Futures Short Futures Contracts Expiring December 2018 ................................ - 0.00
6,354 1.32
48 of 10 Year Mini JGB Futures Long Futures Contracts Expiring December 2018 ................................. (11) 0.00
(41,991) (130.00)
323 of Euro Schatz Futures Short Futures Contracts Expiring December 2018 ................................. 57 0.00
(3,512) (113.30)
31 of U.S. 5 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 26 0.00
(82,804) (159.24)
520 of Long Gilt Futures Short Futures Contracts Expiring December 2018 ................................. 794 0.02
(518) (103.64)
5 of Canadian 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 5 0.00
54,647 103.69
527 of Canadian 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (577) (0.02)
53,691 130.00
413 of Euro Schatz Futures Long Futures Contracts Expiring December 2018 ................................. (72) 0.00
387,215 113.25
3,419 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (2,658) (0.08)
103,407 159.33
649 of Long Gilt Futures Long Futures Contracts Expiring December 2018 ................................. (1,052) (0.03)
22,330 145.00
154 of Euro-BTP Futures Long Futures Contracts Expiring December 2018 ................................. (179) (0.01)
14,561 1.32
11 of 2 Japan 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (26) 0.00
29,927 152.69
196 of Euro-Bobl Futures Long Futures Contracts Expiring December 2018 ................................. (173) (0.01)
1,970 151.54
13 of Euro-Bobl Futures Long Futures Contracts Expiring December 2018 ................................. 3 0.00
(40,937) (152.75)
4 of Euro-Bobl Futures Short Futures Contracts Expiring December 2018 ................................. 252 0.01
(164,141) (186.31)
881 of Euro-Bund Future Short Futures Contracts Expiring December 2018 ................................. 1,654 0.05
(91,050) (105.63)
431 of U.S. 2 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 224 0.01
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 133
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
(57,703) (120.21)
480 of U.S. 10 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 688 0.02
76,015 186.31
408 of Euro-Bund Future Long Futures Contracts Expiring December 2018 ................................. (765) (0.02)
108,783 105.61
515 of U.S. 2 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (254) (0.01)
72,530 119.88
605 of U.S. 10 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (667) (0.02)
21,121 118.66
178 of U.S. 10 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. 22 0.00
(2,054) (205.37)
10 of Euro BUXL 30 Year Bond Short Futures Contracts Expiring December 2018 ................................. 29 0.00
112,580 120.15
937 of U.S. 10 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (1,282) (0.04)
157,611 143.94
1,095 of U.S. Long Bond Futures Long Futures Contracts Expiring December 2018 ................................. (3,763) (0.11)
(36,072) (144.29)
250 of U.S. Long Bond Futures Short Futures Contracts Expiring December 2018 ................................. 947 0.03
(12,693) (127.67)
101 of U.S. 10 Year Ultra Futures Short Futures Contracts Expiring December 2018 ................................. (33) 0.00
(23,380) (127.76)
183 of U.S. 10 Year Ultra Futures Short Futures Contracts Expiring December 2018 ................................. 322 0.01
4,486 128.17
35 of U.S. 10 Year Ultra Futures Long Futures Contracts Expiring December 2018 ................................. (76) 0.00
(92,930) (158.85)
585 of U.S. Ultra Bond Futures Short Futures Contracts Expiring December 2018 ................................. 2,676 0.08
27,194 159.03
171 of U.S. Ultra Bond Futures Long Futures Contracts Expiring December 2018 ................................. (812) (0.01)
18,902 71.06
266 of Australian 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (173) (0.01)
(142) (71.05)
2 of Australian 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................ 1 0.00
Unrealised gain on open futures contracts ...................................................................... 7,700 0.23 Unrealised loss on open futures contracts ....................................................................... (12,573) (0.37) Net unrealised gain (loss) on open futures contracts ................................................. (4,873) (0.14)
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 134 Russell Investments Global Credit Fund
Open Forward Foreign Currency Exchange Contracts (0.15%)
Unrealised gain on open forward foreign currency exchange contracts ........................ 15,928 0.46Unrealised loss on open forward foreign currency exchange contracts ......................... (10,636) (0.31)Net unrealised gain (loss) on open forward foreign currency exchange contracts . 5,292 0.15 Currency Options Written (0.00%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States (0.00%) (3,896)
Call at 20.30 USD MXN
Expiring October 2018 .................................................................. (2) 0.00 (537)
Put at 3.80 USD BRL
Expiring October 2018 .................................................................. (8) 0.00 (10) 0.00 France (0.00%)
(540)
Put at 3.80 USD BRL Expiring October 2018 .................................................................. (7) 0.00
Total currency options written at fair value (Premium received USD (100,602)) .... (17) 0.00
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 141
Swaptions Purchased (0.04%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States (0.04%) 3,800
Put at 3.28 on 30 Year IRO
Expiring January 2019 .................................................................. 52 0.00 30,500
Call at 3.11 on 2 Year IRO
Expiring September 2019 .............................................................. 116 0.01 30,500
Call at 3.05 on 2 Year IRO
Expiring September 2019 .............................................................. 103 0.00 30,500
Call at 3.12 on 2 Year IRO
Expiring September 2019 .............................................................. 119 0.01 38,000
Put at 102.50 on 30 Year CDX
Expiring October 2018 .................................................................. 8 0.00 2,900
Put at 2.93 on 30 Year IRO
Expiring December 2019 .............................................................. 220 0.01 16,800
Call at 2.94 on Swaption USD
Expiring February 2020 ................................................................ 64 0.00 42,300
Call at 2.00 on 2 Year IRO
Expiring November 2018 .............................................................. - 0.00 2,100
Put at 2.95 on 30 Year IRO
Expiring December 2019 .............................................................. 155 0.01 900
Put at 3.10 on 30 Year IRO
Expiring March 2019 .................................................................... 31 0.00 2,000
Put at 3.34 on 30 Year IRO
Expiring October 2019 .................................................................. 62 0.00 900
Put at 3.63 on 30 Year IRO
Expiring December 2019 .............................................................. 17 0.00 1,500
Put at 3.26 on 30 Year IRO
Expiring September 2019 .............................................................. 55 0.00 900
Put at 2.94 on 30 Year IRO
Expiring December 2019 .............................................................. 67 0.00 900
Put at 2.95 on 30 Year IRO
Expiring December 2019 .............................................................. 67 0.00 1,300
Put at 3.26 on 30 Year IRO
Expiring September 2019 .............................................................. 47 0.00 12,000
Call at 2.45 on 2 Year IRO
Expiring January 2019 .................................................................. 1 0.00 900
Put at 3.26 on 30 Year IRO
Expiring September 2019 .............................................................. 30 0.00 10,500
Call at 2.00 on 2 Year IRO
Expiring December 2018 .............................................................. - 0.00 Swaptions purchased at net fair value (Premium paid USD 1,622,764) ..................... 1,214 0.04
Swaptions Written ((0.05)%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States ((0.05)%) (3,300)
Put at 0.80 on 5 Year CDX
Expiring November 2018 .............................................................. (1) 0.00 (2,800)
Put at 3.20 on 5 Year IRO
Expiring October 2018 .................................................................. (3) 0.00 (2,800)
Call at 3.00 on 5 Year IRO
Expiring October 2018 .................................................................. (3) 0.00
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 142 Russell Investments Global Credit Fund
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
(2,700)
Put at 3.09 on 5 Year IRO Expiring October 2018 .................................................................. (3) 0.00
(2,700)
Call at 2.88 on 5 Year IRO Expiring October 2018 .................................................................. - 0.00
(2,600)
Put at 3.05 on 5 Year IRO Expiring October 2018 .................................................................. (7) 0.00
(2,800)
Call at 2.97 on 5 Year IRO Expiring October 2018 .................................................................. (2) 0.00
(2,800)
Put at 3.17 on 5 Year IRO Expiring October 2018 .................................................................. (1) 0.00
(2,800)
Put at 3.22 on 5 Year IRO Expiring October 2018 .................................................................. (1) 0.00
(3,100)
Put at 0.80 on 5 Year CDX Expiring December 2018 .............................................................. (2) 0.00
(2,600)
Call at 2.84 on 5 Year IRO Expiring October 2018 .................................................................. - 0.00
(3,200)
Put at 3.22 on 5 Year IRO Expiring October 2018 .................................................................. (1) 0.00
(3,200)
Call at 3.01 on 5 Year IRO Expiring October 2018 .................................................................. (4) 0.00
(2,800)
Call at 3.02 on 5 Year IRO Expiring October 2018 .................................................................. (4) 0.00
(3,400)
Put at 3.00 on 5 Year IRO Expiring September 2018 .............................................................. (8) 0.00
(3,400)
Call at 2.79 on 5 Year IRO Expiring September 2018 .............................................................. - 0.00
(3,400)
Call at 2.83 on 5 Year IRO Expiring October 2018 .................................................................. - 0.00
(3,500)
Put at 0.95 on 30 Year ITRAXX Expiring December 2018 .............................................................. (3) 0.00
(3,400)
Put at 0.95 on 29 Year ITRAXX Expiring October 2018 .................................................................. - 0.00
(3,400)
Put at 0.80 on 29 Year ITRAXX Expiring October 2018 .................................................................. - 0.00
(3,400)
Put at 3.04 on 5 Year IRO Expiring October 2018 .................................................................. (5) 0.00
(3,800)
Put at 0.85 on 29 Year ITRAXX Expiring October 2018 .................................................................. - 0.00
(4,700)
Call at 2.91 on 5 Year IRO Expiring October 2018 .................................................................. (1) 0.00
(4,700)
Put at 3.11 on 5 Year IRO Expiring October 2018 .................................................................. (4) 0.00
(3,500)
Put at 0.90 on 29 Year ITRAXX Expiring October 2018 .................................................................. - 0.00
(6,500)
Put at 0.70 on 5 Year CDX Expiring October 2018 .................................................................. (1) 0.00
(7,600)
Put at 3.04 on 5 Year IRO Expiring September 2018 .............................................................. (17) 0.00
(7,600)
Call 2.83 on 5 Year IRO Expiring September 2018 .............................................................. - 0.00
(7,500)
Put at 0.90 on 29 Year ITRAXX Expiring October 2018 .................................................................. - 0.00
(22,800)
Put at 0.80 on 5 Year CDX Expiring October 2018 .................................................................. (1) 0.00
(2,200)
Call at 2.17 on 10 Year IRO Expiring December 2018 .............................................................. - 0.00
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 143
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
(3,000)
Call at 2.18 on 10 Year IRO Expiring November 2018 .............................................................. - 0.00
(3,900)
Put at 2.94 on 5 Year IRO Expiring September 2019 .............................................................. (68) 0.00
(2,400)
Call at 2.55 on 10 Year IRO Expiring January 2019 .................................................................. (2) 0.00
(3,000)
Call at 2.20 on 10 Year IRO Expiring November 2018 .............................................................. - 0.00
(3,000)
Call at 2.21 on 10 Year IRO Expiring November 2018 .............................................................. - 0.00
(5,600)
Put at 2.94 on 5 Year IRO Expiring September 2019 .............................................................. (97) 0.00
(4,000)
Put at 2.75 on 5 Year IRO Expiring December 2019 .............................................................. (98) 0.00
(4,000)
Put at 2.75 on 5 Year IRO Expiring December 2019 .............................................................. (98) 0.00
(6,500)
Put at 2.94 on 5 Year IRO Expiring September 2019 .............................................................. (113) 0.00
(3,800)
Put at 3.75 on 5 Year IRO Expiring December 2019 .............................................................. (16) 0.00
(8,600)
Put at 3.04 on 5 Year IRO Expiring October 2019 .................................................................. (128) (0.01)
(3,900)
Put at 2.97 on 5 Year IRO Expiring March 2019 .................................................................... (46) 0.00
(9,200)
Put at 2.75 on 5 Year IRO Expiring December 2019 .............................................................. (226) (0.01)
(1,600)
Call at 3.09 on Swaption USD Expiring February 2020 ................................................................ (80) 0.00
(12,800)
Put at 2.75 on 5 Year IRO Expiring December 2019 .............................................................. (314) (0.01)
(6,700)
Call at 3.05 on 10 Year IRO Expiring September 2019 .............................................................. (113) 0.00
(6,700)
Call at 3.10 on 10 Year IRO Expiring September 2019 .............................................................. (125) (0.01)
(6,700)
Call at 3.10 on 10 Year IRO Expiring September 2019 .............................................................. (124) (0.01)
(17,300)
Put at 3.20 on 5 Year IRO Expiring January 2019 .................................................................. (77) 0.00
Total swaptions written at fair value (Premium received USD (1,629,569)) ............. (1,797) (0.05) Interest Rate Swaps ((0.01)%)
Ccy Notional
Amount ‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
CAD 600 2.73% CAD 3 month
CDOR 31/01/2048 14 0.00
EUR 34,040 EUR 6 month
MEURIBI 0.79% 15/08/2027 (451) (0.01)
EUR 5,300 EUR 6 month
MLIBORI 1.05% 01/02/2028 113 0.00
EUR 11,975 EUR 6 month
MLIBORI 1.33% 05/03/2028 224 0.01
EUR 3,500 EUR 6 month
MEURIB2 0.86% 24/07/2028 (43) 0.00
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 144 Russell Investments Global Credit Fund
Ccy Notional
Amount ‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
EUR 25,200 EUR 6 month
MEURIBS 1.00% 20/03/2029 (347) (0.01)
GBP 4,000 1.43% GBP 6 month
MLIBORI 17/05/2023 (15) 0.00
GBP 6,365 1.34% GBP 6 month
MLIBORI 11/06/2023 15 0.00
GBP 600 1.50% GBP 6 month
LIBOR 20/03/2029 16 0.00
GBP 400 1.75% GBP 6 month
LIBOR 20/03/2049 3 0.00
GBP 800 1.75% GBP 6 month
LIBOR 21/09/2066 (19) 0.00
JPY 344,000 1.00% JPY 6 month
LIBOR 20/09/2024 (119) (0.01)
JPY 491,700 0.30% JPY 6 month
LIBOR 20/03/2028 15 0.00
JPY 400,000 0.45% JPY 6 month
LIBOR 20/03/2029 (18) 0.00
JPY 60,000 0.41% JPY 6 month
LIBOR 25/03/2029 (1) 0.00
JPY 115,000 1.25% JPY 6 month
LIBOR 17/06/2035 (102) 0.00
MXN 32,000
MXN 1 month Mexico Interbank
TIIE 7.88% 27/12/2022 (1) 0.00
MXN 68,100
MXN 1 month Mexico Interbank
TIIE 6.30% 26/04/2024 (277) (0.01)
MXN 40,500
MXN 1 month Mexico Interbank
TIIE 6.15% 07/06/2024 (185) (0.01)
MXN 15,800
MXN 1 month Mexico Interbank
TIIE 7.67% 05/03/2025 (14) 0.00
USD 200 USD 1 month
MCPI 1.27% 30/09/2020 7 0.00
USD 2,100 USD 1 month
MCPI 1.30% 30/09/2020 73 0.00
USD 7,790 2.11% USD 3 month
MLIBORI 07/02/2023 312 0.01
USD 29,447 2.97% USD 3 month
MLIBORI 27/04/2023 (106) 0.00
USD 3,200 2.67% USD 3 month
MLIBORI 08/05/2023 33 0.00
USD 14,250 3.00% USD 3 month
MLIBORI 17/09/2023 51 0.00
USD 18,000 USD 3 month
LIBOR 3.00% 19/09/2023 (78) 0.00
USD 28,000 3.09% USD 6 month
MLIBORI 25/09/2023 (9) 0.00
USD 3,300 USD 3 month
LIBOR 3.00% 26/09/2023 (15) 0.00
USD 3,500 USD 3 month
LIBOR 2.96% 26/09/2023 (23) 0.00
USD 4,580 2.26% USD 3 month
MLIBORI 07/02/2025 222 0.01
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 145
Ccy Notional
Amount ‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD 2,720 2.32% USD 6 month
MLIBORI 07/02/2028 178 0.00
USD 5,100 2.36% USD 3 month
MLIBORI 07/02/2028 317 0.01 Interest rate swaps at positive fair value ......................................................................... 1,593 0.04 Interest rate swaps at negative fair value ........................................................................ (1,823) (0.05) Total interest rate swaps at fair value ......................................................................... (230) (0.01) Credit Default Swaps (0.29%)
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 148 Russell Investments Global Credit Fund
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (800)
Brazilian Government
International Bond # 1.00% 20/06/2023 (46) 0.00
EUR 1,700 Schaeffler Finance
BV # 1.00% 20/06/2023 368 0.02
USD 1,600 Mexico Government International Bond # 1.00% 20/06/2023 - 0.00
USD (100)
Indonesia Government
International Bond # 1.00% 20/06/2023 (1) 0.00USD 900 Ford Motor Co # 1.00% 20/06/2023 136 0.00USD (300) Petroleos Mexicanos # 1.00% 20/06/2023 (15) 0.00
EUR 500 Vodafone Group
PLC # 1.00% 20/06/2023 8 0.00EUR (1,810) Intesa Sanpaolo SpA # 1.00% 20/06/2023 (196) (0.02) EUR 600 Deutsche Bank AG # 1.00% 20/06/2019 3 0.00
USD (100) Mexico Government International Bond # 1.00% 20/12/2023 (1) 0.00
USD (100) Mexico Government International Bond
# 1.00% 20/12/2023 (1) 0.00
Credit default swaps at positive fair value ...................................................................... 14,174 0.41 Credit default swaps at negative fair value ..................................................................... (4,013) (0.12) Credit default swaps at fair value ............................................................................... 10,161 0.29 Total Financial Derivative Instruments ...................................................................... 9,750 0.28
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (97.65%) ........................................................................ 3,350,917 97.65
Total Financial Liabilities at Fair Value through Profit or Loss ((0.90)%) ........................................................................ (30,859) (0.90)
Net Financial Assets at Fair Value Through Profit or Loss (96.75%) ........................................................................ 3,320,058 96.75
Other Net Assets (3.25%) ..................................................... 111,542 3.25 Net Assets ............................................................................... 3,431,600 100.00
* Perpetual bonds. ** Partly held as collateral by the counterparties in connection with collateral purposes for over the counter financial derivative instruments held by the Fund. *** U.S. Treasury Notes (USD 216,000 par value) are pledged as collateral in respect of the financial derivative instruments. # In the event of bankruptcy or, the fund will pay/receive the notional amount to/from the counterparty.
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 149
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing ..... 67.28 Transferable securities dealt in on another regulated market ..................................................................... 14.67 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) ............................ 5.00 Certificates of deposit ................................................................................................................................ 0.97 Commercial paper ...................................................................................................................................... 1.26 Investment funds (UCITS) ......................................................................................................................... 3.43 Exchange traded financial derivative instruments ..................................................................................... 0.25 Over the counter financial derivative instruments ..................................................................................... 0.89 Other assets ................................................................................................................................................ 6.25
100.00 The brokers for the open futures contracts are:
Bank of America Merrill Lynch Goldman Sachs Credit Suisse JP Morgan
The counterparties for the open forward foreign currency exchange contracts are:
Bank of America Merrill Lynch Morgan Stanley Bank of Montreal Natwest Barclays Bank Nomura BNP Paribas Royal Bank Of Canada Brown Brothers Harriman Societe Generale Citibank Standard Chartered Bank Commonwealth Bank of Australia State Street Bank And Trust Company Credit Suisse Toronto Bank Goldman Sachs UBS HSBC Westpac JP Morgan
The counterparties for the currency options written are:
BNP Paribas Citibank The counterparties for the swaptions purchased are:
Bank of America Merrill Lynch Goldman Sachs BNP Paribas JP Morgan Citibank Morgan Stanley Deutsche Bank
The counterparties for swaptions written are:
Bank of America Merrill Lynch Deutsche Bank Barclays Bank First Union National Bank BNP Paribas Goldman Sachs Citibank JP Morgan Credit Suisse Morgan Stanley
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 150 Russell Investments Global Credit Fund
The counterparties for the interest rate swaps are:
Bank of America Merrill Lynch HSBC BNP Paribas JP Morgan Credit Suisse
The counterparties for the credit default swaps are:
Bank of America Merrill Lynch Deutsche Bank Barclays Bank Goldman Sachs BNP Paribas HSBC Citibank JP Morgan Citigroup Morgan Stanley Credit Suisse UBS AG
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018.
As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 7,700 - - 7,700 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 15,928 - 15,928 Swaptions purchased at fair value .................................... - 1,214 - 1,214 Interest rate swaps at fair value ........................................ - 1,593 - 1,593 Credit default swaps at fair value ..................................... - 14,174 - 14,174
Total assets ......................................................................... 7,700 3,337,517 5,700 3,350,917 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (12,573) - - (12,573) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (10,636) - (10,636) Currency options written at fair value .............................. - (17) - (17) Swaptions written at fair value ......................................... - (1,797) - (1,797) Interest rate swaps at fair value ........................................ - (1,823) - (1,823) Credit default swaps at fair value ..................................... - (4,013) - (4,013)
Total liabilities ................................................................... (12,573) (18,286) - (30,859)
Russell Investment Company plc Russell Investments Global Credit Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global Credit Fund 151
As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 13,153 - - 13,153 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 35,740 - 35,740 Swaptions purchased at fair value .................................... - 1,013 - 1,013 Interest rate swaps at fair value ........................................ - 2,486 - 2,486 Credit default swaps at fair value ..................................... - 13,703 - 13,703
Total assets ......................................................................... 13,157 3,920,138 10,498 3,943,793 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (22,509) - - (22,509) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (12,676) - (12,676) Currency options written at fair value .............................. - (10) - (10) Swaptions written at fair value ......................................... - (1,402) - (1,402) Interest rate swaps at fair value ........................................ - (2,128) - (2,128) Credit default swaps at fair value ..................................... - (5,703) - (5,703)
Total liabilities ................................................................... (22,509) (21,919) - (44,428)
Russell Investment Company plc Russell Investments Global Credit Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 152 Russell Investments Global Credit Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 856,088 Class R Roll-Up Shares (823,661)
U.S. Treasury Note U.S. Treasury Note 2.875% 15/08/28 233,893 2.875% 15/08/28 (212,143)
Russell Investment Company III plc Russell Investment Company III plc Russell Investments Euro Liquidity Fund Russell Investments Euro Liquidity Fund Class R Roll-Up Shares 200,016 Class R Roll-Up Shares (193,101)
Fannie Mae Pool 1.875% 31/03/22 (43,291) 3.500% 15/10/46 41,549 Fannie Mae Pool
U.S. Treasury Bill 3.500% 15/10/46 (41,465) Zero Coupon 20/09/18 39,966 U.S. Treasury Bill
U.S. Treasury Note Zero Coupon 20/09/18 (39,969) 1.875% 31/03/22 38,869 Fannie Mae Pool
Fannie Mae Pool 3.500% 15/07/48 (37,645) 3.500% 15/07/48 37,454 3.500% 15/04/46 (30,356) 3.500% 15/04/46 23,549 3.500% 15/06/48 (27,503) 3.500% 15/06/48 23,403 3.500% 15/05/46 (23,403) 3.500% 15/08/48 21,094 U.S. Treasury Strip Principal 3.500% 15/09/46 21,054 Zero Coupon 15/05/44 (23,043) 3.500% 13/11/48 20,728 Fannie Mae Pool
European Investment Bank 3.500% 15/08/48 (21,078) 0.375% 16/07/25 19,331 3.500% 15/09/46 (21,052)
Bank of America Corp 3.500% 13/11/48 (18,035) 1.379% 07/02/25 19,037 CVS Health Corp
JPMorgan Chase & Co 3.700% 09/03/23 (15,034) 3.797% 23/07/24 18,725
Russell Investment Company plc Russell Investments Global High Yield Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global High Yield Fund 153
30 September 2018 (Unaudited) EUR ‘000
31 March 2018 (Audited) EUR ‘000
Assets Financial assets at fair value through profit or loss ...................................................... 509,442 585,165 Cash at bank (Note 2) ................................................................................................... 5,579 2,841 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ......................................................................................................................... 6,751 8,556 Debtors:
Receivable for investments sold ................................................................................ 1,463 2,570 Receivable on fund shares issued ............................................................................... 9 61 Dividends receivable .................................................................................................. 11 6 Interest receivable ...................................................................................................... 7,677 8,688
530,932 607,887 Liabilities Financial liabilities at fair value through profit or loss ................................................. (5,833) (10,077) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) ...................................................................................................................... (5,103) (4,501) Payable for investments purchased ............................................................................ (6,623) (5,041) Payable on fund shares redeemed .............................................................................. (114) (128) Distributions payable on income share classes .......................................................... (743) (701) Management fees payable .......................................................................................... (415) (498) Depositary fees payable ............................................................................................. (42) (11) Sub-custodian fees payable ........................................................................................ (11) (18) Administration fees payable ...................................................................................... (25) (19) Audit fees payable ..................................................................................................... (10) (22) Other fees payable ..................................................................................................... (6) (5)
(18,925) (21,021) Net assets attributable to redeemable participating shareholders ......................... 512,007 586,866
Russell Investment Company plc Russell Investments Global High Yield Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 154 Russell Investments Global High Yield Fund
Six months ended 30 September 2018
(Unaudited) EUR ‘000
Six months ended 30 September 2017
(Unaudited) EUR ‘000
Income Dividends .................................................................................................................... 15 - Interest income ............................................................................................................ 16,016 18,668
16,031 18,668
Net gain (loss) on investment activities ......................................................................... (14,998) (15,871) Total investment income (expense) ............................................................................ 1,033 2,797 Expenses
Total operating expenses ............................................................................................. (2,958) (3,652) Net income (expense) ................................................................................................... (1,925) (855) Finance costs
Distributions (Note 7) .................................................................................................. (13,820) (13,483) Profit (loss) for the financial period before taxation ................................................ (15,745) (14,338) Taxation
Withholding tax (Note 8) ............................................................................................ (18) (18) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................... (15,763) (14,356) All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Global High Yield Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global High Yield Fund 155
Six months ended 30 September 2018
(Unaudited) EUR ‘000
Six months ended 30 September 2017
(Unaudited) EUR ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (15,763) (14,356) Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) .................. 11,577 11,814 Net decrease in net assets attributable to redeemable participating shareholders resulting from share transactions (Note 9) ................................................................. (70,673) 48,819
Total net decrease in net assets attributable to redeemable participating shareholders ................................................................................................................ (74,859) 46,277 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................... 586,866 633,827 End of financial period ............................................................................................... 512,007 680,104
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 156 Russell Investments Global High Yield Fund
Principal Amount
Fair Value EUR ‘000
Fund %
Transferable Securities (89.18%) Long Term Bonds and Notes (78.93%) Australia (0.69%)
Baffinland Iron Mines Corp / Baffinland Iron Mines LP
USD 1,560,000 8.750% due 15/07/26 ....... 1,353 0.26 Bausch Health Cos Inc 1,053,000 5.875% due 15/05/23 ....... 887 0.17 125,000 7.000% due 15/03/24 ....... 114 0.02 940,000 6.125% due 15/04/25 ....... 771 0.15 Bombardier Inc 250,000 7.750% due 15/03/20 ....... 226 0.04 300,000 8.750% due 01/12/21 ....... 286 0.06
Principal Amount
Fair Value EUR ‘000
Fund %
Enbridge Inc 2,483,000 5.500% due 15/07/77 ...... 1,987 0.39 First Quantum Minerals Ltd 500,000 7.250% due 15/05/22 ...... 423 0.08 628,000 6.500% due 01/03/24 ...... 497 0.10 237,000 7.500% due 01/04/25 ...... 194 0.04 784,000 6.875% due 01/03/26 ...... 616 0.12
goeasy Ltd 225,000 7.875% due 01/11/22 ...... 202 0.04
Jupiter Resources Inc 1,876,000 8.500% due 01/10/22 ...... 775 0.15 Kinross Gold Corp 645,000 4.500% due 15/07/27 ...... 498 0.10 940,000 6.875% due 01/09/41 ...... 830 0.16
Masonite International Corp 300,000 5.750% due 15/09/26 ...... 260 0.05 MEG Energy Corp 860,000 6.375% due 30/01/23 ...... 677 0.13 2,640,000 7.000% due 31/03/24 ...... 2,085 0.41
National Bank of Canada 300,000 2.936% due 17/01/20 ...... 260 0.05
New Gold Inc 988,000 6.250% due 15/11/22 ...... 746 0.15
New Red Finance Inc 250,000 4.250% due 15/05/24 ...... 204 0.04
Northwest Acquisitions ULC / Dominion Finco Inc
2,524,000 7.125% due 01/11/22 ...... 2,227 0.43 Open Text Corp
325,000 5.875% due 01/06/26 ...... 289 0.06 Postmedia Network Inc CAD 1 8.250% due 15/07/21 ...... - 0.00 Royal Bank of Canada USD 250,000 2.701% due 02/03/20 ...... 216 0.04
Teck Resources Ltd 67,000 4.500% due 15/01/21 ...... 58 0.01 150,000 6.125% due 01/10/35 ...... 137 0.03 373,000 6.250% due 15/07/41 ...... 339 0.07
Titan Acquisition Ltd / Titan Co-Borrower LLC
1,600,000 7.750% due 15/04/26 ...... 1,198 0.23 Toronto-Dominion Bank
Bilfinger SE 480,000 2.375% due 07/12/19 ....... 491 0.10
Blitz F18-674 GmbH 550,000 6.000% due 30/07/26 ....... 557 0.11
CTC BondCo GmbH 650,000 5.250% due 15/12/25 ....... 648 0.13 Deutsche Bank AG 1,000,000 2.750% due 17/02/25 ....... 1,007 0.20 100,000 4.500% due 19/05/26 ....... 108 0.02
EUR 350,000 4.500% due 15/05/26 ....... 348 0.07 USD 75,000 6.250% due 15/05/26 ....... 65 0.01 EUR 259,000 6.875% due 15/11/26 ....... 260 0.05 First Data Corp USD 500,000 7.000% due 01/12/23 ....... 449 0.09 First Quality Finance Co Inc
300,000 5.000% due 01/07/25 ....... 242 0.05
Ford Credit Auto Owner Trust
169,219 2.228% due 15/05/20 ....... 146 0.03
Foresight Energy LLC / Foresight Energy Finance Corp
250,000 6.750% due 15/03/24 ...... 228 0.04 Team Health Holdings Inc
2,030,000 6.375% due 01/02/25 ...... 1,542 0.30
Tender Option Bond Trust Receipts/Certificates
700,000 Zero Coupon due 29/10/27 603 0.12 Tenet Healthcare Corp 30,000 6.000% due 01/10/20 ...... 27 0.01 750,000 8.125% due 01/04/22 ...... 683 0.13
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global High Yield Fund 169
Principal Amount
Fair Value EUR ‘000
Fund %
2,654,000 4.625% due 15/07/24 ....... 2,228 0.44 122,000 6.875% due 15/11/31 ....... 95 0.02
TMS International Corp 861,000 7.250% due 15/08/25 ....... 749 0.15 Toll Brothers Finance Corp 400,000 4.875% due 15/11/25 ....... 339 0.07 100,000 4.875% due 15/03/27 ....... 82 0.02 2,335,000 4.350% due 15/02/28 ....... 1,853 0.36
Townsquare Media Inc 810,000 6.500% due 01/04/23 ....... 648 0.13
Toyota Auto Receivables Owner Trust
413,138 1.250% due 16/03/20 ....... 354 0.07 Toyota Motor Credit Corp
840,000 2.704% due 12/03/20 ....... 726 0.14 TransDigm Inc
450,000 6.500% due 15/05/25 ....... 396 0.08 Trident Merger Sub Inc
1,400,000 6.625% due 01/11/25 ....... 1,145 0.22 Triumph Group Inc 366,000 4.875% due 01/04/21 ....... 306 0.06 75,000 5.250% due 01/06/22 ....... 61 0.01 643,000 7.750% due 15/08/25 ....... 539 0.11
TTM Technologies Inc 150,000 5.625% due 01/10/25 ....... 130 0.03
Under Armour Inc 150,000 3.250% due 15/06/26 ....... 114 0.02
United Rentals North America Inc
225,000 4.625% due 15/10/25 ....... 188 0.04 United States Cellular Corp
150,000 6.700% due 15/12/33 ....... 132 0.03
Uniti Group LP / Uniti Fiber Holdings Inc / CSL Capital LLC
2,110,000 8.250% due 15/10/23 ....... 1,744 0.34 1,840,000 7.125% due 15/12/24 ....... 1,457 0.28
Univision Communications Inc
374,000 5.125% due 15/02/25 ....... 302 0.06 Urban One Inc
1,340,000 7.375% due 15/04/22 ....... 1,148 0.22 US Bank NA 320,000 2.662% due 24/01/20 ....... 276 0.05 500,000 2.487% due 23/10/20 ....... 430 0.08
US Concrete Inc 475,000 6.375% due 01/06/24 ....... 416 0.08
USIS Merger Sub Inc 1,350,000 6.875% due 01/05/25 ....... 1,162 0.23
VeriSign Inc 300,000 5.250% due 01/04/25 ....... 264 0.05
Principal Amount
Fair Value EUR ‘000
Fund %
Veritas US Inc / Veritas Bermuda Ltd
1,082,000 10.500% due 01/02/24 .... 857 0.17
Verizon Communications Inc
755,000 2.860% due 22/05/20 ...... 654 0.13
VFH Parent LLC / Orchestra Co-Issuer Inc
1,052,000 6.750% due 15/06/22 ...... 937 0.18 Vizient Inc
2,980,000 10.375% due 01/03/24 .... 2,819 0.55 Walmart Inc
165,000 2.596% due 23/06/21 ...... 143 0.03 Walt Disney Co
350,000 2.506% due 05/06/20 ...... 302 0.06 Washington Prime Group LP
200,000 5.950% due 15/08/24 ...... 163 0.03 WellCare Health Plans Inc
275,000 5.375% due 15/08/26 ...... 241 0.05 Wells Fargo & Co
250,000 3.327% due 07/12/20 ...... 218 0.04 Wells Fargo Bank NA
350,000 2.847% due 23/07/21 ...... 302 0.06 West Corp
1,260,000 8.500% due 15/10/25 ...... 1,001 0.20 West Street Merger Sub Inc
1,870,000 6.375% due 01/09/25 ...... 1,534 0.31 Whiting Petroleum Corp 150,000 5.750% due 15/03/21 ...... 133 0.03 225,000 6.625% due 15/01/26 ...... 202 0.04
William Lyon Homes Inc 194,000 6.000% due 01/09/23 ...... 162 0.03
Williams Cos Inc 150,000 8.750% due 15/03/32 ...... 173 0.03
WPX Energy Inc 175,000 8.250% due 01/08/23 ...... 172 0.03
Wyndham Destinations Inc 510,000 5.625% due 01/03/21 ...... 450 0.09
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp
150,000 5.500% due 01/03/25 ...... 125 0.02 Yum! Brands Inc 459,000 3.875% due 01/11/23 ...... 380 0.08 56,000 5.350% due 01/11/43 ...... 41 0.01
Zachry Holdings Inc 1,045,000 7.500% due 01/02/20 ...... 905 0.20 226,674 44.26 Virgin Islands, British (0.27%)
Gerdau Trade Inc 750,000 4.750% due 15/04/23 ...... 644 0.13
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 170 Russell Investments Global High Yield Fund
Principal Amount
Fair Value EUR ‘000
Fund %
GTL Trade Finance Inc / Gerdau Holdings Inc
150,000 5.893% due 29/04/24 ....... 131 0.03 Studio City Co Ltd
550,000 7.250% due 30/11/21 ....... 491 0.11 1,266 0.27
Total Long Term Bonds and Notes ............................ 404,150 78.93
Short Term Investments (5.62%) Australia (0.08%)
National Australia Bank Ltd 500,000 2.590% due 14/05/19 ....... 431 0.08 Bermuda (0.08%)
Novartis Securities Investment Ltd
485,000 5.125% due 10/02/19 ....... 421 0.08 Brazil (0.03%)
Centrais Eletricas Brasileiras SA
200,000 6.875% due 30/07/19 ....... 176 0.03 Canada (0.04%)
Royal Bank of Canada 250,000 2.150% due 15/03/19 ....... 215 0.04 France (0.10%)
Total Capital International SA
560,000 2.689% due 19/06/19 ....... 483 0.10 Netherlands (0.13%)
Shell International Finance BV
800,000 1.375% due 10/05/19 ....... 684 0.13 Switzerland (0.14%)
UBS AG 850,000 2.375% due 14/08/19 ....... 729 0.14 United States (5.02%)
Allegiant Travel Co 1,292,000 5.500% due 15/07/19 ....... 1,129 0.22
American Express Credit Corp
753,000 2.887% due 18/03/19 ....... 650 0.13
Anheuser-Busch InBev Finance Inc
134,000 2.743% due 01/02/19 ....... 116 0.02
Principal Amount
Fair Value EUR ‘000
Fund %
Apple Inc 350,000 2.481% due 02/08/19 ...... 302 0.06
Cisco Systems Inc 300,000 1.400% due 20/09/19 ...... 255 0.05
Citibank NA 350,000 2.571% due 09/11/18 ...... 301 0.06
eBay Inc 550,000 2.823% due 01/08/19 ...... 475 0.09
Federal Home Loan Bank Discount Notes
600,000 Zero Coupon due 01/10/18 516 0.10 300,000 Zero Coupon due 03/10/18 258 0.05 1,100,000 Zero Coupon due 05/10/18 944 0.18 1,900,000 Zero Coupon due 10/10/18 1,631 0.32 2,700,000 Zero Coupon due 12/10/18 2,317 0.45 5,500,000 Zero Coupon due 19/10/18 4,727 0.93 4,800,000 Zero Coupon due 23/10/18 4,111 0.81 1,700,000 Zero Coupon due 25/10/18 1,464 0.29 400,000 Zero Coupon due 07/11/18 343 0.07 5,700,000 Zero Coupon due 21/11/18 4,882 0.96 500,000 Zero Coupon due 30/11/18 428 0.08 500,000 Zero Coupon due 14/12/18 428 0.08
Frontier Communications Corp
422,000 7.125% due 15/03/19 ...... 366 0.07
Magnetation LLC / Mag Finance Corp
1,600,000 11.000% due 15/05/19 .... - 0.00 Real Alloy Holding Inc
2,058,000 10.000% due 15/01/19 .... - 0.00 25,643 5.02
Total Short Term Investments ........................ 28,782 5.62
Bank Loans (3.82%) Canada (0.11%)
Catalyst Paper Corp 984,864 6.000% due 27/01/22 ...... 577 0.11 France (0.12%)
Altice France SA 700,000 6.158% due 14/08/26 ...... 599 0.12 Germany (0.19%)
PCF GmbH EUR 1,000,000 5.140% due 01/08/24 ...... 998 0.19
Luxembourg (0.51%) Evergreen Skills Lux Sarl
USD 2,732,204 6.992% due 28/04/21 ...... 2,244 0.44 499,958 10.429% due 28/04/22 .... 367 0.07 2,611 0.51
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global High Yield Fund 171
Principal Amount
Fair Value EUR ‘000
Fund %
Netherlands (0.13%) Starfruit Finco BV
EUR 200,000 3.490% due 20/09/25 ....... 202 0.04 USD 525,000 3.490% due 20/09/25 ....... 454 0.09
656 0.13 Poland (0.19%)
Pfleiderer Group SA EUR 1,000,000 5.000% due 01/08/24 ....... 998 0.19
3,346 Readers Digest Association Inc ....................................... - 0.00
Total Warrants .................. 17 0.00
Total Transferable Securities ........................... 456,594 89.18
Principal Amount
Fair Value EUR ‘000
Fund %
Certificates of Deposit (0.60%) Canada (0.07%)
Bank of Nova Scotia USD 400,000 2.606% due 30/12/19 ...... 345 0.07
Norway (0.18%)
DNB Bank ASA 1,050,000 2.561% due 10/02/20 ...... 904 0.18 Sweden (0.08%)
Swedbank AB 500,000 Zero Coupon due 24/08/20 430 0.08
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 172 Russell Investments Global High Yield Fund
Number of Shares
Fair Value EUR ‘000
Fund %
Switzerland (0.13%) Svenska Handelsbanken
800,000 2.617% due 21/10/19 ....... 689 0.13 United States (0.14%)
Citibank NA 500,000 2.510% due 14/03/19 ....... 430 0.09
Nordea Bank AB 300,000 Zero Coupon due 10/04/19 258 0.05 688 0.14
Total Certificates of Deposit ................................ 3,056 0.60
Commercial Paper (1.54%) Canada (0.07%)
Province of Alberta Canada 400,000 Zero Coupon due 03/12/18 343 0.07 Germany (0.12%)
DZ Bank AG 700,000 Zero Coupon due 28/09/18 603 0.12 Jersey, Channel Islands (0.05%)
Cancara Asset Securitisation Ltd
300,000 Zero Coupon due 19/11/18 257 0.05 United Kingdom (0.28%)
Barclays Bank Plc 800,000 Zero Coupon due 02/01/19 684 0.13
HSBC Bank Plc 900,000 Zero Coupon due 10/04/19 775 0.15 1,459 0.28 United States (1.02%)
AT&T Inc 400,000 Zero Coupon due 30/05/19 334 0.07
Barton Capital SA 800,000 Zero Coupon due 01/10/18 689 0.13
Eni Finance USA Inc 1,000,000 Zero Coupon due 06/12/18 857 0.17
ING US Funding LLC 300,000 Zero Coupon due 12/04/19 258 0.05
Number of Shares
Fair Value EUR ‘000
Fund %
Manhattan Associates Inc 800,000 Zero Coupon due 29/10/18 687 0.13
Natixis SA 700,000 Zero Coupon due 15/03/19 595 0.12
PACCAR Financial Corp 1,000,000 Zero Coupon due 28/09/18 861 0.17
Starbird Corp 500,000 Zero Coupon due 05/11/18 429 0.08
Reckitt Benckiser Treasury Services Plc
600,000 Zero Coupon due 04/01/19 514 0.10 5,224 1.02 Total Commercial Paper .. 7,886 1.54 Money Market Instruments (2.00%) United States (2.00%) U.S. Treasury Bill 12,000,000 Zero Coupon due 07/03/19 10,229 2.00
Total Money Market Instruments ....................... 10,229 2.00
Number of Shares
Fair Value EUR ‘000
Fund %
Investment Funds (3.96%) Ireland (3.95%)
17,248
Russell Investment Company III plc Russell Investments Euro Liquidity Fund - Class R Roll-Up Shares ................ 17,067 3.33
3,576
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 3,171 0.62
Total Investments excluding Financial Derivative Instruments ..... 498,065 97.28
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global High Yield Fund 173
Financial Derivative Instruments (1.08%) Open Futures Contracts ((0.07)%)
Notional Amount
EUR ‘000
Average Cost Price
EUR
Unrealised Gain (Loss) EUR ‘000
Fund %
15,699 89.20
176 of Canadian 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (152) (0.03)
5,260 111.91
47 of Euro Schatz Futures Long Futures Contracts Expiring December 2018 ................................. (7) 0.00
(36,264) (111.93)
324 of Euro Schatz Futures Short Futures Contracts Expiring December 2018 .................................. 49 0.01
23,481 97.39
241 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (144) (0.03)
822 136.86
6 of Long Gilt Futures Long Futures Contracts Expiring December 2018 ................................. (7) 0.00
(24,805) (137.04)
181 of Long Gilt Futures Short Futures Contracts Expiring December 2018 ................................ 228 0.04
1,709 131.40
13 of Euro-Bobl Futures Long Futures Contracts Expiring December 2018 ................................. (9) 0.00
(787) (131.21)
6 of Euro-Bobl Futures Short Futures Contracts Expiring December 2018 ................................. 3 0.00
9,792 160.43
61 of Euro-Bund Futures Long Futures Contracts Expiring December 2018 ................................. (106) (0.02)
(21,841) (160.60)
136 of Euro-Bund Futures Short Futures Contracts Expiring December 2018 ................................. 246 0.05
(4,959) (159.96)
31 of Euro-Bund Futures Short Futures Contracts Expiring December 2018 ................................. 36 0.01
57,825 90.93
318 of U.S. 2 Year Treasury Note Futures Long Futures Contracts Expiring December 2018 ................................. (130) (0.03)
23,630 90.88
130 of U.S. 2 Year Treasury Note Futures Long Futures Contracts Expiring December 2018 ................................. (43) (0.01)
36,099 103.38
349 of U.S. 10 Year Treasury Note Futures Long Futures Contracts Expiring December 2018 ................................. (408) (0.08)
(7,233) (103.33)
70 of U.S. 10 Year Treasury Note Futures Short Futures Contracts Expiring December 2018 ................................. 74 0.02
2,605 123.99
21 of U.S. Long Bond Futures Long Futures Contracts Expiring December 2018 ................................. (65) (0.01)
(367) (122.44)
3 of U.S. Long Bond Futures Short Futures Contracts Expiring December 2018 ................................. 4 0.00
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 174 Russell Investments Global High Yield Fund
Notional Amount
EUR ‘000
Average Cost Price
EUR
Unrealised Gain (Loss) EUR ‘000
Fund %
(110) (110.26)
1 of U.S. 10 Year Ultra Futures Short Futures Contracts Expiring December 2018 ................................. 2 0.00
(3,692) (136.73)
27 of U.S. Ultra Bond Futures Short Futures Contracts Expiring December 2018 ................................. 106 0.02
6,178 61.17
101 of 10 Year Australian Bond Futures Long Futures Contracts Expiring December 2018 ................................. (55) (0.01)
Unrealised gain on open futures contracts ...................................................................... 748 0.15 Unrealised loss on open futures contracts ....................................................................... (1,126) (0.22) Net unrealised gain (loss) on open futures contracts ................................................. (378) (0.07) Open Forward Foreign Currency Exchange Contracts (0.20%)
Unrealised gain on open forward foreign currency exchange contracts ............................... 4,499 0.87 Unrealised loss on open forward foreign currency exchange contracts ................................ (3,454) (0.67) Net unrealised gain (loss) on open forward foreign currency exchange contracts ....... 1,045 0.20
Futures Options Written (0.00%)
Notional Amount
EUR ‘000 Fair Value EUR ‘000
Fund %
United States (0.00%) (40)
Put at 119.25 U.S. 10 Year Future Option
Expiring October 2018 .................................................................. (18) 0.00 (40)
Call at 121.25 U.S. 10 Year Future Option
Expiring October 2018 .................................................................. (1) 0.00 Total futures options written at fair value (Premium received EUR (20,276)) ......... (19) 0.00
Swaptions Written (0.00%)
Notional Amount
EUR ‘000 Fair Value EUR ‘000
Fund %
United States (0.00%) (4,000)
Call at 2.75 on 10 Year IRO
Expiring October 2018 .................................................................. - 0.00 (4,000)
Put at 3.20 on 10 Year IRO
Expiring October 2018 .................................................................. (3) 0.00 Total swaptions written at fair value (Premium received EUR (24,491)) ................. (3) 0.00
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Credit default swaps at positive fair value ...................................................................... 6,084 1.19 Credit default swaps at negative fair value ..................................................................... (1,231) (0.25) Credit default swaps at fair value ............................................................................... 4,853 0.94 Total Return Bond Swaps (0.01%)
Ccy
Notional Amount
‘000 Fund Pays
Fund Receives
Termination Date
Fair Value EUR ‘000
Fund %
EUR 1,600 USD 3 Month LIBOR 1.00% 20/12/2018 46 0.01 Total return bond swaps at fair value ......................................................................... 46 0.01 Total Financial Derivative Instruments ...................................................................... 5,544 1.08
Fair Value EUR ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.50%) .......................................................................... 509,442 99.50
Total Financial Liabilities at Fair Value through Profit or Loss ((1.14)%) .......................................................................... (5,833) (1.14)
Net Financial Assets at Fair Value through Profit or Loss (98.36%) ................................................................................... 503,609 98.36
Other Net Assets (1.64%) ....................................................... 8,398 1.64 Net Assets ................................................................................. 512,007 100.00
* Perpetual bonds. # In the event of bankruptcy or, the fund will pay/receive the notional amount to/from the counterparty.
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing ............. 47.27 Transferable securities dealt in on another regulated market ............................................................................. 38.98 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) .................................... 1.43 Certificates of deposit ........................................................................................................................................ 0.57 Commercial paper .............................................................................................................................................. 1.48 Investment funds (UCITS) ................................................................................................................................. 3.81 Exchange traded financial derivative instruments ............................................................................................. 0.14 Over the counter financial derivative instruments ............................................................................................. 2.00 Other assets ........................................................................................................................................................ 4.32
100.00
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Global High Yield Fund 179
The brokers for the open futures contracts are Goldman Sachs and Morgan Stanley. The counterparties for the open forward foreign currency exchange contracts are: Bank of America Merrill Lynch HSBC Bank of Montreal JP Morgan Barclays Bank Morgan Stanley BNP Paribas Royal Bank of Canada Brown Brothers Harriman Societe Generale Citibank Standard Chartered Bank Commonwealth Bank of Australia State Street Bank and Trust Company Goldman Sachs Westpac Banking The counterparty for the futures options written is BNP Paribas. The counterparty for the swaptions written is Citibank. The counterparties for the credit default swaps are: Bank of America Merrill Lynch Credit Suisse Barclays Bank Goldman Sachs BNP Paribas JP Morgan Citibank The counterparty for the total return bond swaps is Bank of America Merrill Lynch. Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
EUR ‘000 Level 2
EUR ‘000 Level 3
EUR ‘000 Total
EUR ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 748 - - 748 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 4,499 - 4,499 Credit default swaps at fair value ..................................... - 6,084 - 6,084 Total return bond swaps at fair value ............................. - 46 - 46
Total assets ......................................................................... 4,837 504,605 - 509,442 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (1,126) - - (1,126) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (3,454) - (3,454) Futures options written at fair value ................................. - (19) - (19) Swaptions written at fair value ......................................... - (3) - (3) Credit default swaps at fair value ..................................... - (1,231) - (1,231)
Total liabilities ................................................................... (1,126) (4,707) - (5,833)
Russell Investment Company plc Russell Investments Global High Yield Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 180 Russell Investments Global High Yield Fund
As at 31 March 2018
Level 1
EUR ‘000 Level 2
EUR ‘000 Level 3
EUR ‘000 Total
EUR ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 1,365 - - 1,365 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 5,840 - 5,840 Credit default swaps at fair value ..................................... - 4,823 - 4,823
Total assets ......................................................................... 1,748 579,404 4,013 585,165 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (1,156) - - (1,156) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (7,767) - (7,767) Equity options written ...................................................... - (23) - (23) Swaptions written at fair value ......................................... - (3) - (3) Credit default swaps at fair value ..................................... - (1,116) - (1,116) Total return bond swaps ................................................... - (12) - (12)
Total liabilities ................................................................... (1,156) (8,921) - (10,077)
Russell Investment Company plc Russell Investments Global High Yield Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Russell Investments Global High Yield Fund 181
Portfolio Securities Acquisition Cost
EUR ‘000 Portfolio Securities Disposal Proceeds
EUR ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 90,755 Class R Roll-Up Shares (91,457)
Russell Investment Company III plc Russell Investment Company III plc Russell Investments Euro Liquidity Fund Russell Investments Euro Liquidity Fund Class R Roll-Up Shares 73,179 Class R Roll-Up Shares (70,353)
U.S. Treasury Bill Federal Home Loan Bank Discount Note Zero Coupon due 07/03/19 10,223 Zero Coupon due 31/08/18 (9,173)
Federal Home Loan Bank Discount Note Fannie Mae Pool Zero Coupon due 06/09/18 10,064 3.500% due 15/05/46 (9,168)
Fannie Mae Pool U.S. Treasury Bill 3.500% due 15/05/46 9,173 Zero Coupon due 24/01/19 (8,990)
Federal Home Loan Bank Discount Note Federal Home Loan Bank Discount Notes Zero Coupon due 31/08/18 9,077 Zero Coupon due 19/09/18 (8,196)
U.S. Treasury Bill Zero Coupon due 18/05/18 (4,859) Zero Coupon due 24/01/19 8,998 Zero Coupon due 04/05/18 (4,373)
Federal Home Loan Bank Discount Notes TransDigm Inc Zero Coupon due 19/09/18 8,846 6.375% due 15/06/26 (4,254) Zero Coupon due 18/05/18 6,326 Federal Home Loan Bank Discount Notes Zero Coupon due 03/08/18 5,052 Zero Coupon due 26/09/18 (4,169) Zero Coupon due 21/11/18 4,914 Zero Coupon due 08/06/18 (3,772) Zero Coupon due 19/10/18 4,673 Spectrum Brands Holdings Inc Zero Coupon due 26/09/18 4,210 7.750% due 15/07/19 (3,131) Zero Coupon due 23/10/18 4,112 Total SA Zero Coupon due 20/07/18 3,905 2.250%* (3,050) Zero Coupon due 08/06/18 3,562 Federal Home Loan Bank Discount Note Zero Coupon due 23/04/18 3,342 Zero Coupon due 05/07/18 (2,677) Zero Coupon due 11/07/18 3,254 Ally Financial Inc
MPLX LP 4.625% due 30/03/25 (2,571) 4.125% due 01/03/27 2,996 TIBCO Software Inc
Resolute Energy Corp 11.375% due 01/12/21 (2,567) 8.500% due 01/05/20 2,791 QCP SNF West
8.125% due 01/11/23 (2,402) Coveris Holdings SA
7.875% due 01/11/19 (2,285) Solvay Finance SA 4.199%* (2,010) MPLX LP 4.500% due 15/07/23 (1,851) * Perpetual bonds.
Russell Investment Company plc Russell Investments Japan Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 182 Russell Investments Japan Equity Fund
30 September 2018 (Unaudited)
JPY ‘000
31 March 2018 (Audited) JPY ‘000
Assets Financial assets at fair value through profit or loss ....................................................... 56,009,557 50,126,022 Cash at bank (Note 2) .................................................................................................... 7,363,831 3,165,494 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ......................................................................................................................... - 108,225 Debtors:
Receivable for investments sold ................................................................................. 1,246,150 9,323 Receivable on fund shares issued ............................................................................... 1,687,905 125,660 Dividends receivable .................................................................................................. 373,782 408,096
66,681,225 53,942,820 Liabilities Financial liabilities at fair value through profit or loss ................................................. (2,665) (4,065) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) ...................................................................................................................... (50,250) - Payable for investments purchased ............................................................................ (1,275,758) (40,948) Payable on fund shares redeemed .............................................................................. (593,703) (327,957) Distributions payable on income share classes .......................................................... (7,128) (4,651) Management fees payable .......................................................................................... (43,941) (42,916) Depositary fees payable ............................................................................................. (1,179) (674) Sub-custodian fees payable ........................................................................................ (6,605) (2,810) Administration fees payable ....................................................................................... (2,834) (1,787) Audit fees payable ...................................................................................................... (994) (2,057) Other fees payable ...................................................................................................... (81) (133)
(1,985,138) (427,998) Net assets attributable to redeemable participating shareholders .......................... 64,696,087 53,514,822 Movement in fair value of financial assets between last dealing NAV and the financial year end .......................................................................................................... - (456,328) Net assets attributable to redeemable participating shareholders at dealing NAV 64,696,087 53,058,494
Russell Investment Company plc Russell Investments Japan Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Japan Equity Fund 183
Six months ended 30 September 2018
(Unaudited) JPY ‘000
Six months ended 30 September 2017
(Unaudited) JPY ‘000
Income Dividends ................................................................................................................. 534,995 456,464
Net gain (loss) on investment activities ....................................................................... 4,471,641 7,019,983 Total investment income (expense) .......................................................................... 5,006,636 7,476,447 Expenses
Total operating expenses ........................................................................................... (311,299) (283,203) Net income (expense) ................................................................................................. 4,695,337 7,193,244 Finance costs
Distributions (Note 7) ............................................................................................... (150,938) (122,907) Profit (loss) for the financial period before taxation .............................................. 4,544,399 7,070,337 Taxation
Withholding tax (Note 8) ......................................................................................... (79,833) (68,336) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 4,464,566 7,002,001 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Japan Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 184 Russell Investments Japan Equity Fund
Six months ended 30 September 2018
(Unaudited) JPY ‘000
Six months ended 30 September 2017
(Unaudited) JPY ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 4,464,566 7,002,001 Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................. 143,742 120,556 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ 6,572,957 2,553,253
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 11,181,265 9,675,810 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 53,514,822 51,114,614 End of financial period ............................................................................................. 64,696,087 60,790,424
Russell Investment Company plc Russell Investments Japan Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Japan Equity Fund 185
Number of Shares
Fair Value JPY ‘000
Fund %
Transferable Securities (85.98%) Common Stock (85.98%) Japan (85.98%) Advertising
ASKA Pharmaceutical Co Ltd ...................................... 4,226 0.01
96,700 Astellas Pharma Inc ............ 191,659 0.30 65,000 Fuji Pharma Co Ltd ............ 116,480 0.18 14,800 Medipal Holdings Corp ...... 35,091 0.05 1,100 Ono Pharmaceutical Co Ltd 3,537 0.01
141,800
Rohto Pharmaceutical Co Ltd ...................................... 565,782 0.87
86,500
Santen Pharmaceutical Co Ltd ...................................... 155,787 0.24
46,600
Sawai Pharmaceutical Co Ltd ...................................... 285,658 0.44
Russell Investment Company plc Russell Investments Japan Equity Fund Schedule of Investments – continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Japan Equity Fund 189
Number of Shares
Fair Value JPY ‘000
Fund %
34,500 Shionogi & Co Ltd .............. 256,128 0.40
70,900
Takeda Pharmaceutical Co Ltd ....................................... 344,645 0.53
8,300 Toho Holdings Co Ltd ......... 25,025 0.04 4,900 Towa Pharmaceutical Co Ltd 41,258 0.06 71,600 Tsumura & Co ..................... 280,672 0.43
2,305,948 3.56 Real Estate
68,800 Daibiru Corp ....................... 82,422 0.13 17,200 Goldcrest Co Ltd ................. 31,958 0.05 70,300 Mitsubishi Estate Co Ltd ..... 135,820 0.21 51,100 Mitsui Fudosan Co Ltd ........ 137,408 0.21
11,900
Nomura Real Estate Holdings Inc ........................ 27,299 0.04
2,400 Open House Co Ltd ............. 13,440 0.02 124,300 Relo Group Inc .................... 415,162 0.64 95,000 Star Mica Co Ltd ................. 168,055 0.26 16,800 Tosei Corp ........................... 19,740 0.03
38,500 Bandai Namco Holdings Inc 169,978 0.26 9,500 Nintendo Co Ltd ................. 393,870 0.61
563,848 0.87 Transport
3,100 Central Japan Railway Co ... 73,346 0.11 3,700 Hamakyorex Co Ltd ........... 15,281 0.02 13,400 Kamigumi Co Ltd ............... 33,554 0.05
Russell Investment Company plc Russell Investments Japan Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 190 Russell Investments Japan Equity Fund
Number of Shares
Fair Value JPY ‘000
Fund %
1,900 Kintetsu World Express Inc 4,138 0.01 71,500 Kyushu Railway Co ............ 247,390 0.38 4,700 Mitsubishi Logistics Corp ... 13,799 0.02 23,900 Mitsui OSK Lines Ltd ......... 79,229 0.12 51,400 Nagoya Railroad Co Ltd ...... 144,640 0.22
22,000
Nankai Electric Railway Co Ltd ....................................... 62,810 0.10
7,600 Nippon Express Co Ltd ....... 56,696 0.09 183,800 Nippon Yusen KK ............... 392,781 0.61
1,300
Nishi-Nippon Railroad Co Ltd ....................................... 3,998 0.01
Number of Shares
Fair Value JPY ‘000
Fund %
10,400 Seino Holdings Co Ltd ....... 17,857 0.03 88,200 SG Holdings Co Ltd ........... 262,571 0.40 108,000 Tokyu Corp ......................... 224,424 0.35 5,600 West Japan Railway Co ...... 44,358 0.07
1,676,872 2.59 Total Common Stock ........ 55,622,186 85.98
Total Transferable Securities ........................... 55,622,186 85.98
Total Investments excluding Financial Derivative Instruments ..... 55,622,186 85.98
Financial Derivative Instruments (0.60%) Open Futures Contracts (0.43%)
Notional Amount JPY ‘000
Average Cost Price
JPY
Unrealised Gain (Loss)
JPY ‘000 Fund
% 6,500,059
1,742.64
373 of Topix Index Futures Long Futures Contracts Expiring December 2018 .................................. 279,217 0.43
Net unrealised gain (loss) on open futures contracts ................................................. 279,217 0.43 Open Forward Foreign Currency Exchange Contracts (0.17%)
Unrealised gain on open forward foreign currency exchange contracts ............................... 108,154 0.17 Unrealised loss on open forward foreign currency exchange contracts ................................ (2,665) 0.00 Net unrealised gain (loss) on open forward foreign currency exchange contracts ....... 105,489 0.17 Total Financial Derivative Instruments ............................................................................ 384,706 0.60
Fair Value JPY ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (86.58%) ......................................................................................... 56,009,557 86.58
Total Financial Liabilities at Fair Value through Profit or Loss (0.00%) .................................................................................. (2,665) 0.00
Net Financial Assets at Fair Value Through Profit or Loss (86.58%) ......................................................................................... 56,006,892 86.58
Other Net Assets (13.42%) ........................................................... 8,689,195 13.42 Net Assets ....................................................................................... 64,696,087 100.00
Russell Investment Company plc Russell Investments Japan Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Japan Equity Fund 191
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing .................................................................... 83.42 Exchange traded financial derivative instruments .................................................................................................. 0.42 Over the counter financial derivative instruments .................................................................................................. 0.16 Other assets ............................................................................................................................................................. 16.00
100.00 The broker for the open futures contracts is Morgan Stanley. The counterparties for the open forward foreign currency exchange contracts are:
Bank of Montreal Royal Bank of Canada Commonwealth Bank of Australia State Street Bank and Trust Company
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
JPY ‘000 Level 2
JPY ‘000 Level 3
JPY ‘000 Total
JPY ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Transferable securities .................................................. 55,622,186 - - 55,622,186 Unrealised gain on open futures contracts .................... 279,217 - - 279,217Unrealised gain on open forward foreign currency exchange contracts ........................................................ - 108,154 - 108,154
Total assets ......................................................................... 55,622,186 108,154 - 56,009,557 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (2,665) - (2,665)
Total liabilities ................................................................... - (2,665) - (2,665) As at 31 March 2018
Level 1
JPY ‘000 Level 2
JPY ‘000 Level 3
JPY ‘000 Total
JPY ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Transferable securities .................................................. 50,085,772 - - 50,085,772 Unrealised gain on open futures contracts ..................... 18,683 - - 18,683 Unrealised gain on open forward foreign currency exchange contracts ........................................................ - 21,567 - 21,567
Total assets ......................................................................... 50,104,455 21,567 - 50,126,022 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (4,065) - (4,065)
Total liabilities ................................................................... - (4,065) - (4,065)
Russell Investment Company plc Russell Investments Japan Equity Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 192 Russell Investments Japan Equity Fund
Portfolio Securities Acquisition Cost
JPY ‘000 Portfolio Securities Disposal Proceeds
JPY ‘000 Nomura Holdings Inc 570,624 Nintendo Co Ltd (489,224) Takeda Pharmaceutical Co Ltd 473,044 Sony Financial Holdings Inc (469,540) Daikin Industries Ltd 352,626 Mitsubishi Corp (431,369) Toyota Motor Corp 351,955 Sony Corp (352,395) Nintendo Co Ltd 285,789 SoftBank Group Corp (308,423) Kyocera Corp 279,798 Fuji Media Holdings Inc (274,854) Honda Motor Co Ltd 267,731 Canon Inc (264,724) Panasonic Corp 267,430 Kao Corp (260,073) Sumitomo Electric Industries Ltd 262,643 Recruit Holdings Co Ltd (257,261) NTT Data Corp 258,317 Fast Retailing Co Ltd (255,009) Inpex Corp 252,071 Mitsubishi Heavy Industries Ltd (251,655) Sony Corp 240,367 Mitsubishi Electric Corp (214,980) Nippon Steel & Sumitomo Metal Corp 233,452 Mitsubishi Chemical Holdings Corp (208,169) KDDI Corp 230,742 Panasonic Corp (206,382) H2O Retailing Corp 225,076 Toyota Motor Corp (203,259) SoftBank Group Corp 214,776 Nippon Steel & Sumitomo Metal Corp (202,018) Mitsubishi Materials Corp 195,774 Screen Holdings Co Ltd (195,957) Unicharm Corp 195,359 SCSK Corp (183,261) Raksul Inc 192,424 KDDI Corp (175,561) Oriental Land Co Ltd 188,666 Tokyo Electron Ltd (172,415)
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Growth Strategy Euro Fund 193
30 September 2018 (Unaudited) EUR ‘000
31 March 2018 (Audited) EUR’000
Assets Financial assets at fair value through profit or loss ..................................................... 386,854 364,110 Cash at bank (Note 2) .................................................................................................. 16,293 5,907 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 13,016 3,298 Debtors:
Receivable for investments sold ............................................................................... 25,405 567 Receivable on fund shares issued ............................................................................. 14 95 Dividends receivable ................................................................................................ 43 33 Interest receivable .................................................................................................... 317 218 Prepayments and other debtors ................................................................................. 653 651
442,595 374,879 Liabilities Financial liabilities at fair value through profit or loss ................................................ (3,583) (1,595) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) .................................................................................................................... (12,194) (285) Payable for investments purchased .......................................................................... (18,324) (99) Payable on fund shares redeemed ............................................................................. (168) (1,460) Management fees payable ........................................................................................ (279) (285) Sub-custodian fees payable ...................................................................................... (3) (2) Administration fees payable ..................................................................................... (19) (12) Audit fees payable .................................................................................................... (6) (11)
(34,576) (3,749) Net assets attributable to redeemable participating shareholders ........................ 408,019 371,130
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 194 Russell Investments Multi-Asset Growth Strategy Euro Fund
Six months ended 30 September 2018
(Unaudited) EUR ‘000
Six months ended 30 September 2017
(Unaudited) EUR ‘000
Income Dividends .................................................................................................................. 425 213
Net gain (loss) on investment activities ........................................................................ (30) 6,770 Total investment income (expense) ........................................................................... 395 6,983 Expenses
Total operating expenses ............................................................................................ (635) (642) Profit (loss) for the financial period before taxation ............................................... (240) 6,341 Taxation
Withholding tax (Note 8) .......................................................................................... (79) (45) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (319) 6,296 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Growth Strategy Euro Fund 195
Six months ended 30 September 2018
(Unaudited) EUR ‘000
Six months ended 30 September 2017
(Unaudited) EUR ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (319) 6,296 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ 37,208 30,274
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 36,889 36,570 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 371,130 366,442 End of financial period ............................................................................................. 408,019 403,012
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 196 Russell Investments Multi-Asset Growth Strategy Euro Fund
Number of Shares
Fair Value EUR ‘000
Fund %
Transferable securities (16.85%) Common Stock (7.82%) Australia (0.12%) Banks
2,166
Australia & New Zealand Banking Group Ltd ............. 38 0.01
829
Commonwealth Bank of Australia .............................. 37 0.01
392 Hershey Co .......................... 34 0.01 468 JM Smucker Co ................... 41 0.01 263 Kellogg Co .......................... 16 0.00 519 Kraft Heinz Co .................... 25 0.01 1,013 Kroger Co ............................ 25 0.01 1,019 McCormick & Co Inc .......... 116 0.02 1,061 Mondelez International Inc . 39 0.01
Hand and Machine Tools 398 Snap-on Inc ......................... 63 0.02
Health Care Equipment and Supplies 2,287 Abbott Laboratories ............. 144 0.03 141 Becton Dickinson and Co .... 32 0.01 224 Cooper Cos Inc .................... 53 0.01
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Growth Strategy Euro Fund 203
Number of Shares
Fair Value EUR ‘000
Fund %
Media 4,704 Comcast Corp ...................... 143 0.04
425
FactSet Research Systems Inc ....................................... 82 0.02
1,453 TEGNA Inc ......................... 15 0.00 670 Viacom Inc .......................... 19 0.00 1,436 Walt Disney Co ................... 145 0.04
Miscellaneous Manufacturers 796 3M Co ................................. 144 0.04 1,911 Donaldson Co Inc ................ 96 0.02 5,829 General Electric Co ............. 57 0.01
Transport 434 FedEx Corp ......................... 90 0.02 825 Ryder System Inc ................ 52 0.01 683 Union Pacific Corp .............. 96 0.03
Water Utilities 1,363 Aqua America Inc ............... 43 0.01
19,899 4.87 Total Common Stock ........ 31,928 7.82 Preferred Stock (0.02%) Germany (0.02%) Automobiles
166 Volkswagen AG .................. 25 0.00 Chemicals
817 Fuchs Petrolub SE ............... 39 0.01 Household Products
342 Henkel AG & Co KGaA ..... 35 0.01 99 0.02 Total Preferred Stock ........ 99 0.02
Principal Amount Long Term Bonds and Notes (2.33%) Australia (0.25%)
Australia & New Zealand Banking Group Ltd
EUR 1,000,000 0.08% due 28/10/19 ......... 1,004 0.25 Canada (0.34%)
Royal Bank of Canada 1,400,000 0.111% due 06/08/20 ....... 1,409 0.34 France (0.59%)
French Republic Government Bond OAT
1,726,000 3.750% due 25/10/19 ....... 1,805 0.44 597,000 Zero Coupon due 25/03/23 597 0.15 2,402 0.59 Netherlands (0.10%)
Cooperatieve Rabobank UA 400,000 Zero Coupon due 29/05/20 402 0.10 Switzerland (0.27%)
UBS AG 1,100,000 0.179% due 23/04/21 ....... 1,106 0.27
Principal Amount
Fair Value EUR ‘000
Fund %
United States (0.78%) Johnson & Johnson
1,500,000 4.750% due 06/11/19 ...... 1,584 0.39 Wells Fargo & Co
1,600,000 0.101% due 02/06/20 ...... 1,606 0.39 3,190 0.78
Total Long Term Bonds and Notes ........................... 9,513 2.33
Short Term Investments (6.68%) Australia (0.47%)
Commonwealth Bank of Australia
1,900,000 1.625% due 04/02/19 ...... 1,913 0.47 Canada (0.12%)
Royal Bank of Canada 500,000 0.109% due 22/10/18 ...... 500 0.12 Denmark (0.25%)
Danske Bank A/S 1,000,000 0.031% due 19/11/18 ...... 1,000 0.25 Finland (0.42%)
Nordea Bank Abp 1,700,000 0.131% due 22/02/19 ...... 1,703 0.42 France (1.48%)
French Republic Government Bond OAT
2,690,000 4.250% due 25/10/18 ...... 2,698 0.66 1,825,000 1.000% due 25/05/19 ...... 1,844 0.45
HSBC France SA 1,500,000 1.625% due 03/12/18 ...... 1,505 0.37 6,047 1.48 Luxembourg (0.37%)
Nestle Finance International Ltd
1,500,000 1.500% due 19/07/19 ...... 1,521 0.37 Netherlands (0.80%)
PACCAR Financial Europe BV
1,051,000 0.125% due 24/05/19 ...... 1,052 0.26
Shell International Finance BV
2,190,000 Zero Coupon due 15/09/19 2,198 0.54 3,250 0.80 Supranational (0.22%)
European Investment Bank 900,000 2.500% due 15/10/18 ...... 901 0.22
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Growth Strategy Euro Fund 205
Principal Amount
Fair Value EUR ‘000
Fund %
Switzerland (0.34%) UBS AG
1,400,000 0.181% due 05/09/19 ....... 1,405 0.34 United Kingdom (0.74%)
Lloyds Bank Plc 1,500,000 0.179% due 09/10/18 ....... 1,500 0.37
Standard Chartered Bank 1,500,000 0.181% due 23/08/19 ....... 1,505 0.37 3,005 0.74 United States (1.47%)
American Honda Finance Corp
1,400,000 0.081% due 11/03/19 ....... 1,403 0.34 Bank of America Corp
1,200,000 0.179% due 26/07/19 ....... 1,204 0.29 Colgate-Palmolive Co
1,700,000 Zero Coupon due 14/05/19 1,703 0.42 JPMorgan Chase & Co
1,700,000 0.281% due 07/05/19 ....... 1,706 0.42 6,016 1.47
Total Short Term Investments ........................ 27,261 6.68
Total Transferable Securities ............................ 68,801 16.85
Certificates of Deposit (1.52%) Netherlands (0.12%)
Cooperatieve Rabobank U.A.
500,000 Zero Coupon due 29/03/19 501 0.12 Switzerland (0.49%)
Credit Suisse AG 2,000,000 Zero Coupon due 08/02/19 2,006 0.49 United Kingdom (0.91%)
Citibank 1,000,000 Zero Coupon due 18/12/18 1,001 0.25
Credit Suisse 500,000 Zero Coupon due 14/02/19 501 0.12
Mizuho Corporate Bank 700,000 Zero Coupon due 02/10/18 700 0.17 1,500,000 Zero Coupon due 11/12/18 1,501 0.37 3,703 0.91
Total Certificates of Deposit ................................ 6,210 1.52
Principal Amount
Fair Value EUR ‘000
Fund %
Commercial Paper (4.59%) France (2.14%)
Agence Centrale des Organismes de Sécurité Sociale
5,000,000 Zero Coupon due 30/11/18 5,004 1.23 Antalis 1,000,000 Zero Coupon due 14/11/18 1,001 0.25 LMA 2,200,000 Zero Coupon due 26/10/18 2,201 0.54 500,000 Zero Coupon due 20/03/19 501 0.12 8,707 2.14 Ireland (0.73%) Matchpoint Finance Plc 500,000 Zero Coupon due 30/11/18 500 0.12 1,700,000 Zero Coupon due 11/10/18 1,702 0.41 800,000 Zero Coupon due 17/12/18 801 0.20 3,003 0.73 Sweden (0.86%) Svenska Handelsbanken 2,000,000 Zero Coupon due 05/11/18 2,003 0.49 Swedbank 1,500,000 Zero Coupon due 19/02/19 1,503 0.37 3,506 0.86 United States (0.86%) Honeywell International 1,000,000 Zero Coupon due 11/10/18 1,000 0.24 1,000,000 Zero Coupon due 17/01/19 1,001 0.25 Procter&Gamble 1,500,000 Zero Coupon due 17/10/18 1,502 0.37 3,503 0.86 Total Commercial Paper ... 18,719 4.59 Money Market Instruments (0.84%) France (0.84%) France Treasury Bill BTF 3,419,000 Zero Coupon due 17/10/18 3,420 0.84
Total Money Market Instruments ....................... 3,420 0.84
Number of Shares
Investment Funds (70.70%) France (5.06%) 289 H2O AM - H2O Adagio ..... 20,642 5.06
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 206 Russell Investments Multi-Asset Growth Strategy Euro Fund
Number of Shares
Fair Value EUR ‘000
Fund %
Ireland (57.30%)
28,149
Russell Investment Company II plc Russell Investments Emerging Market Debt Local Currency Fund - Class B Shares .............................. 24,370 5.97
5,434
Russell Investment Company plc Russell Asia Pacific Ex Japan Fund - Class A Shares 1,975 0.48
15,246
Russell Investment Company Plc Russell Global Credit Fund - Class EH-C Shares ... 15,904 3.90
43,122
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund - Class A Shares ......... 15,824 3.88
22,624
Russell Investment Company plc Russell Investments Global High Yield Fund - Class A Shares ..................... 29,355 7.19
9,308
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Class K-H Shares ................ 9,362 2.29
418,261
Russell Investment Company plc Russell Investments World Equity Fund II - Class EH-T Shares ........................ 69,557 17.05
23,472
Russell Investment Company plc The Japan Equity Fund - Class A Shares ..................... 5,814 1.43
4,825
Russell Investments Global Listed Infrastructure Fund - Class P Shares ..................... 10,631 2.61
Number of Shares
Fair Value EUR ‘000
Fund %
5,539
Russell Investments Multi Strategy Volatility Fund ...... 5,616 1.38
13,748
Russell Investments Pan European Equity Fund - Class B Accumulated Shares 20,622 5.05
241,923
Salar Fund plc - Class I Shares ................................. 24,758 6.07
233,788 57.30 Luxembourg (8.33%)
273,550
BlueBay Global Convertible Bond Fund - Class B USD Accumulated Shares ........... 24,039 5.89
1
Credit Suisse Nova Lux Commodity Plus ................. - 0.00
34,000 8.33 United States (0.01%) 852 Altaba Inc ........................... 50 0.01 Total Investment Funds ..... 288,480 70.70
Total Investments excluding Financial Derivative Instruments ...... 385,630 94.50
Financial Derivative Instruments ((0.57)%) Open Futures Contracts ((0.14)%)
Notional Amount
EUR ‘000
Average Cost Price
EUR
Unrealised Gain (Loss) EUR ‘000
Fund %
51,581 97.32
530 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (257) (0.06)
4,460 3,328.43
134 of Euro Stoxx 50 Long Futures Contracts Expiring December 2018 ................................. 78 0.02
12,032 126.92
948 of Sx5E Dividend Futures Long Futures Contracts Expiring December 2019 ................................. (410) (0.10)
Unrealised gain on open futures contracts ..................................................................... 78 0.02 Unrealised loss on open futures contracts ...................................................................... (667) (0.16) Net unrealised gain (loss) on open futures contracts ................................................ (589) (0.14)
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Growth Strategy Euro Fund 207
Open Forward Foreign Currency Exchange Contracts ((0.09)%)
Unrealised gain on open forward foreign currency exchange contracts ........................ 200 0.04 Unrealised loss on open forward foreign currency exchange contracts ......................... (585) (0.13) Net unrealised gain (loss) on open forward foreign currency exchange contracts (385) (0.09) Index Options Purchased (0.23%)
Notional Amount
EUR ‘000 Fair Value EUR ‘000
Fund %
Germany 7
Call at 3,550.00 EURO Stoxx 50 PR
Expiring December 2020 ........................................................... 946 0.23 Total futures options purchased at fair value (Premium paid EUR 1,465) ............... 946 0.23 Index Options Written ((0.45)%)
Notional Amount
EUR ‘000 Fair Value EUR ‘000
Fund %
United States ((0.45)%) (4)
Call at 2,625.00 of S&P 500 Index
Expiring December 2020 ........................................................... (1,828) (0.45)Total futures options written at fair value (Premium received EUR (1,065)) .......... (1,828) (0.45)
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 208 Russell Investments Multi-Asset Growth Strategy Euro Fund
Credit Default Swaps ((0.12)%)
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value EUR ‘000
Fund %
USD (8,000) CDX.NA.HY 5.00% # 20/12/2023 (503) (0.12) Total Credit default swaps at fair value ..................................................................... (503) (0.12) Total Financial Derivative Instruments ...................................................................... (2,359) (0.57)
Fair Value EUR ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (94.79%) ......................................................................... 386,854 94.79
Total Financial Liabilities at Fair Value through Profit or Loss ((0.86)%) ......................................................................... (3,583) (0.86)
Net Financial Assets at Fair Value Through Profit or Loss (93.93%) .................................................................................. 383,271 93.93
Other Net Assets (6.07%) ...................................................... 24,748 6.07 Net Assets ................................................................................ 408,019 100.00
Abbreviation used: ADR - American Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ....................................................... 7.56 Transferable securities dealt in on another regulated market ..................................................................... 9.39 Certificates of deposit ................................................................................................................................ 0.47 Commercial paper ...................................................................................................................................... 4.42 Investment funds (UCITS) ......................................................................................................................... 68.08 Exchange traded financial derivative instruments ..................................................................................... 0.02 Over the counter financial derivative instruments ..................................................................................... 0.05 Other assets ................................................................................................................................................ 10.01
100.00 The brokers for open futures contracts are Goldman Sachs and UBS AG. The counterparties for the open forward foreign currency exchange contracts are:
Bank of Montreal Royal Bank of Canada BNP Paribas SA State Street Bank and Trust Company Brown Brothers Harriman Westpac Banking Corporation Commonwealth Bank of Australia
The counterparty for the index options purchased is UBS AG. The counterparty for the index options written is UBS AG. The counterparty for the credit default swaps is UBS AG. # In the event of bankruptcy or, the Fund will pay/receive the notional amount to/from the counterparty.
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Growth Strategy Euro Fund 209
Fair Value Hierarchy (Note 11)
The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018.
As at 30 September 2018
Level 1
EUR ‘000 Level 2
EUR ‘000 Level 3
EUR ‘000 Total
EUR ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 78 - - 78 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 200 - 200 Index options purchased at fair value ............................... 946 - 946
Total assets ......................................................................... 43,062 343,792 - 386,854 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (667) - - (667) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (585) - (585) Index options written at fair value .................................... (1,828) - - (1,828) Credit default swaps at fair value ..................................... - (503) - (503)
Total liabilities ................................................................... (2,495) (1,088) - (3,583)
As at 31 March 2018
Level 1
EUR ‘000 Level 2
EUR ‘000 Level 3
EUR ‘000 Total
EUR ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 203 - - 203 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 604 - 604 Index options purchased at fair value ............................... 302 - - 302
Total assets ......................................................................... 15,567 346,537 2,006 364,110 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (290) - - (290) Unrealised loss on open forward foreign currency exchange contracts ........................................................... (596) - (596) Index options written at fair value .................................... (335) - - (335) Credit default swaps at fair value ..................................... - (374) - (374)
Total liabilities ................................................................... (625) (970) - (1,595)
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Statement of Changes in Composition of Portfolio Listed below are the cumulative investment purchases and sales in excess of 1% of total investment purchases and sales during the six months ended 30 September 2018.
210 Russell Investments Multi-Asset Growth Strategy Euro Fund
Portfolio Securities Acquisition Cost
EUR ‘000 Portfolio Securities Disposal Proceeds
EUR ‘000 Russell Investment Company plc Russell Investment Company II plc
Russell Global Credit Fund Russell Investments Global Defensive Equity Class EH-C Shares 16,200 Class H Shares (13,151)
Russell Investment Company plc Open World plc Russell Investments World Equity Fund II Russell Investments US Credit Class EH-T Shares 11,100 Class P Shares (12,416)
Lyxor Commodities Thomson Reuters/CoreCommodity Open World plc CRB EX-Agriculture TR UCITS ETF 9,941 Russell Investments Euro Credit
Agence Centrale des Organismes de Sécurité Sociale Class P Shares (9,113) Zero Coupon due 30/11/18 5,004 Credit Suisse Nova Lux Commodity Plus (8,340)
France Treasury Bill BTF Russell Investment Company plc Zero Coupon due 24/10/18 5,002 Russell Investments Unconstrained Bond Fund
Agence Centrale des Organismes de Sécurité Sociale Class K-H Shares (7,800) Zero Coupon due 28/09/18 5,001 Russell Investment Company IV plc
France Treasury Bill BTF Russell Investments Alpha Fund Zero Coupon due 17/10/18 4,950 Class A Shares (5,242) Zero Coupon due 08/08/18 4,802 France Treasury Bill BTF Zero Coupon due 12/09/18 4,617 Zero Coupon due 24/10/18 (5,002)
Euro Time Deposit Finnish Government Bond Zero Coupon due 06/06/18 4,386 Zero Coupon due 15/09/18 (4,011)
France Treasury Bill BTF France Treasury Bill BTF Zero Coupon due 22/08/18 4,102 Zero Coupon due 08/08/18 (2,502)
French Republic Government Bond OAT Honeywell International Inc 4.250% 25/10/18 4,099 Zero Coupon due 27/06/18 (2,000)
Russell Investment Company plc Russell Investment Company plc Russell Investments Emerging Markets Equity Fund Russell Investments World Equity Fund II Class A Shares 3,301 Class EH-T Shares (1,983)
Sheffield Receivables Corp France Treasury Bill BTF Zero Coupon due 23/07/18 2,752 Zero Coupon due 17/10/18 (1,527)
France Treasury Bill BTF Zero Coupon due 22/08/18 (1,400) Zero Coupon due 27/06/18 2,518 French Republic Government Bond OAT
UBS AG 4.250% due 25/10/18 (1,363) 0.181% due 05/09/19 2,511 France Treasury Bill BTF
BMW Finance NV Zero Coupon due 18/04/18 (1,209) Zero Coupon due 04/09/18 2,501 Zero Coupon due 30/05/18 (1,131)
Bluebay Global Convertible Bon Fund UBS AG Class B USD Accumulated Shares 2,490 0.181% 05/09/2019 (1,104)
LMA Westpac Banking Corp Zero Coupon due 26/10/18 2,201 Zero Coupon due 25/05/18 (1,102)
Svenska Handelsbanken Netherlands Treasury Bill Zero Coupon due 05/11/18 2,003 Zero Coupon 26/06/18 (1,010)
Toyota Motor Finance Kingdom of Belgium Zero Coupon due 11/07/18 2,002 Zero Coupon due 09/08/18 (1,001)
Honeywell International Inc Zero Coupon due 28/08/18 2,001
Bank of Tokyo-Mitsubishi UFJ Ltd Zero Coupon due 13/06/18 2,001
Russell Investment Company plc Russell Investments Multi-Asset Growth Strategy Euro Fund Statement of Changes in Composition of Portfolio - continued
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Russell Investments Multi-Asset Growth Strategy Euro Fund 211
Portfolio Securities Acquisition Cost
EUR ‘000 Sumitomo Mitsui Banking Corp
Zero Coupon due 10/08/18 2,001 Unilever NV
Zero Coupon due 25/06/18 2,000 Commonwealth Bank of Australia
1.625% 04/02/19 1,926
Russell Investment Company plc Russell Investments Asia Pacific Ex Japan Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 212 Russell Investments Asia Pacific Ex Japan Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ........................................................ 97,388 120,938 Cash at bank (Note 2) ..................................................................................................... 2,500 3,087 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................... 1,528 2,022 Debtors:
Receivable for investments sold ................................................................................. 375 350 Receivable on fund shares issued ............................................................................... 2 2 Dividends receivable .................................................................................................. 180 341
101,973 126,740 Liabilities Financial liabilities at fair value through profit or loss ................................................... (343) (988) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) ....................................................................................................................... (10) (70) Payable for investments purchased ............................................................................. (285) (427) Payable on fund shares redeemed ............................................................................... - (19) Distributions payable on income share classes ........................................................... (35) - Management fees payable ........................................................................................... (95) (127) Depositary fees payable .............................................................................................. (6) (3) Sub-custodian fees payable ......................................................................................... (134) (44) Administration fees payable ....................................................................................... (1) (4) Audit fees payable ...................................................................................................... (10) (23)
(919) (1,705) Net assets attributable to redeemable participating shareholders ........................... 101,054 125,035
Russell Investment Company plc Russell Investments Asia Pacific Ex Japan Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Asia Pacific Ex Japan Fund 213
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 2,247 2,809
Net gain (loss) on investment activities ........................................................................ (7,890) 13,304 Total investment income (expense) ........................................................................... (5,643) 16,113 Expenses
Total operating expenses ............................................................................................ (987) (1,129) Net income (expense) .................................................................................................. (6,630) 14,984 Finance costs
Distributions (Note 9) ............................................................................................... (995) (1,398) Profit (loss) for the financial period before taxation ............................................... (7,625) 13,586 Taxation (Note 8)
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (7,852) 13,355 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Asia Pacific Ex Japan Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 214 Russell Investments Asia Pacific Ex Japan Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (7,852) 13,355 Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................. 922 1,352 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ....................................................................................... (17,051) (19,413)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ......................................................................................... (23,981) (4,706) Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 125,035 136,970 End of financial period .............................................................................................. 101,054 132,264
Russell Investment Company plc Russell Investments Asia Pacific Ex Japan Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Asia Pacific Ex Japan Fund 215
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (89.74%) Common Stock (87.65%) Australia (7.01%) Airlines
Commercial Services and Supplies 12,911 Transurban Group ............... 105 0.10
Construction and Engineering 5,800 CIMIC Group Ltd ............... 216 0.21 23,800 Downer EDI Ltd .................. 136 0.13 6,819 LendLease Group ................ 97 0.10
Containers and Packaging 5,446 Amcor Ltd ........................... 54 0.05
42,933 BTS Group Holdings PCL .. - 0.00 Total Warrants .................. - 0.00
Total Transferable Securities ........................... 90,692 89.74
Investment Funds (6.19%) Ireland (6.19%)
45,000
iShares II Plc MSCI Far East ex-Japan Small Cap UCITS ETF USD Fund ................... 1,326 1.31
4,783
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 4,926 4.88
Total Investment Funds .... 6,252 6.19
Total Investments excluding Financial Derivative Instruments ..... 96,944 95.93
Financial Derivative Instruments (0.10%) Open Futures Contracts (0.02%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
1,933
3,515.37
11 of Hang Seng Index Futures Long Futures Contracts Expiring October 2018 ..................................... 26 0.03
(2,983)
(3,509.73)
17 of Hang Seng Index Futures Short Futures Contracts Expiring October 2018 ..................................... (44) (0.04)
(1,316)
(1,385.05)
19 of HSCEI Futures Short Futures Contracts Expiring October 2018 ..................................... (27) (0.03)
829
1,382.50
12 of HSCEI Futures Long Futures Contracts Expiring October 2018 ..................................... 19 0.02
1,127
0.27
17 of KOSPI 200 Index Futures Long Futures Contracts Expiring December 2018 ................................. 29 0.03
(1,588)
(0.26)
24 of KOSPI 200 Index Futures Short Futures Contracts Expiring December 2018 ................................. (44) (0.04)
Russell Investment Company plc Russell Investments Asia Pacific Ex Japan Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Asia Pacific Ex Japan Fund 223
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
(1,283)
(267.29)
48 of MSCI Singapore Index Futures Short Futures Contracts Expiring October 2018 ................................... (18) (0.02)
829
267.29
31 of MSCI Singapore Index Futures Long Futures Contracts Expiring October 2018 ................................... 11 0.01
984
409.92
24 of MSCI Taiwan Index Futures Long Futures Contracts Expiring October 2018 ................................... 2 0.00
(1,315)
(410.99)
32 of MSCI Taiwan Index Futures Short Futures Contracts Expiring October 2018 ................................... 1 0.00
752
11,055.07
34 of SGX CNX Nifty Index Futures Long Futures Contracts Expiring October 2018 ................................... (7) (0.01)
(1,039)
(11,056.38)
47 of SGX CNX Nifty Index Futures Short Futures Contracts Expiring October 2018 ................................... 9 0.01
10,807
4,456.50
97 of SPI 200 Index Futures Long Futures Contracts Expiring December 2018 ............................... 61 0.06
Unrealised gain on open futures contracts ..................................................................... 158 0.16 Unrealised loss on open futures contracts ...................................................................... (140) (0.14) Net unrealised gain (loss) on open futures contracts ................................................ 18 0.02 Open Forward Foreign Currency Exchange Contracts (0.08%)
Unrealised gain on open forward foreign currency exchange contracts ......................... 286 0.28 Unrealised loss on open forward foreign currency exchange contracts .......................... (203) (0.20) Net unrealised gain (loss) on open forward foreign currency exchange contracts . 83 0.08 Total Financial Derivative Instruments ..................................................................... 101 0.10
Russell Investment Company plc Russell Investments Asia Pacific Ex Japan Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Asia Pacific Ex Japan Fund 225
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (96.37%) ........................................................................ 97,388 96.37
Total Financial Liabilities at Fair Value through Profit or Loss ((0.34)%) ........................................................................ (343) (0.34)
Net Financial Assets at Fair Value through Profit or Loss (96.03%) ................................................................................. 97,045 96.03
Other Net Assets (3.97%) ..................................................... 4,009 3.97 Net Assets ............................................................................... 101,054 100.00
gross assets Transferable securities admitted to an official stock exchange listing ............................................................ 88.71 Investment funds (UCITS) ............................................................................................................................. 6.12 Exchange traded financial derivative instruments .......................................................................................... 0.15 Over the counter financial derivative instruments .......................................................................................... 0.28 Other assets ..................................................................................................................................................... 4.74 100.00 The broker for the open futures contracts is Morgan Stanley. The counterparties for the open forward foreign currency exchange contracts are:
BNP Paribas Standard Chartered Bank Brown Brothers Harriman State Street Bank and Trust Company Citibank Westpac Royal Bank of Canada
Russell Investment Company plc Russell Investments Asia Pacific Ex Japan Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 226 Russell Investments Asia Pacific Ex Japan Fund
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 158 - - 158 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 286 - 286
Total assets ......................................................................... 92,176 5,212 - 97,388 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (140) - - (140) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (203) - (203)
Total liabilities ................................................................... (140) (203) - (343) As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 90 - - 90 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 261 - 261
Total assets ......................................................................... 118,047 2,890 1 120,938 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (686) - - (686) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (302) - (302)
Total liabilities ................................................................... (686) (302) - (988)
Russell Investment Company plc Russell Investments Asia Pacific Ex Japan Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Russell Investments Asia Pacific Ex Japan Fund 227
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 43,203 Class R Roll-Up Shares (40,945)
Baidu Inc ADR 1,484 Alibaba Group Holding Ltd ADR (2,763) Swire Pacific Ltd 1,107 Tencent Holdings Ltd (1,497) Alibaba Group Holding Ltd ADR 950 China Construction Bank Corp (1,332) China Petroleum & Chemical Corp 923 POSCO (1,226) China CITIC Bank Corp Ltd 726 DBS Group Holdings Ltd (1,119) SK Hynix Inc 706 Samsung Electronics Co Ltd (1,061) Health & Happiness H&H International Holdings Ltd 691 MediaTek Inc (944) Infosys Ltd 691 Taiwan Semiconductor Manufacturing Co Ltd (926) CLP Holdings Ltd 683 CNOOC Ltd (854) Woolworths Group Ltd 680 Baidu Inc ADR (744) Uni-President Enterprises Corp 654 LG Chem Ltd (739) Perusahaan Gas Negara Persero Tbk 647 Sun Hung Kai Properties Ltd (729) Tata Consultancy Services Ltd 556 AIA Group Ltd (673) Samsung Electronics Co Ltd 545 Woolworths Group Ltd (649) DBS Group Holdings Ltd 536 Samsung Electronics Co Ltd (620) Woori Bank 490 Tech Mahindra Ltd (604) Oversea-Chinese Banking Corp Ltd 437 Hang Seng Bank Ltd (595) Wesfarmers Ltd 432 Autohome Inc ADR (585) Hang Seng Bank Ltd 420 Oversea-Chinese Banking Corp Ltd (536)
Russell Investment Company plc Russell Investments Sterling Bond Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 228 Russell Investments Sterling Bond Fund
30 September 2018 (Unaudited)
GBP ‘000
31 March 2018 (Audited) GBP ‘000
Assets Financial assets at fair value through profit or loss ...................................................... 117,692 118,621 Cash at bank (Note 2) .................................................................................................. 710 893 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 978 785 Debtors: Receivable for investments sold .................................................................................. - 1,276 Receivable on fund shares issued ................................................................................. 129 5 Interest receivable ........................................................................................................ 876 840 120,385 122,420 Liabilities Financial liabilities at fair value through profit or loss ................................................ (746) (795) Creditors – amounts falling due within one financial year: Cash due to brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ (1) - Payable for investments purchased .............................................................................. (699) (4,472) Payable on fund shares redeemed ................................................................................ - (2,100) Distributions payable on income share classes ............................................................ (113) (113) Management fees payable ............................................................................................ (44) (44) Depositary fees payable ............................................................................................... (10) (2) Sub-custodian fees payable .......................................................................................... (2) (3) Administration fees payable ........................................................................................ (6) (4) Audit fees payable ....................................................................................................... (7) (14) Other fees payable ....................................................................................................... (5) (9) (1,633) (7,556) Net assets attributable to redeemable participating shareholders ......................... 118,752 114,864
Russell Investment Company plc Russell Investments Sterling Bond Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Sterling Bond Fund 229
Six months ended 30 September 2018
(Unaudited) GBP ‘000
Six months ended 30 September 2017
(Unaudited) GBP ‘000
Income Interest income .............................................................................................................. 1,178 1,293 Net gain (loss) on investment activities ........................................................................ (2,634) (1,425) Total investment income (expense) ............................................................................ (1,456) (132) Expenses
Total operating expenses ............................................................................................ (341) (312) Net income (expense) .................................................................................................. (1,797) (444) Finance costs Distributions (Note 7) ................................................................................................... (1,669) (1,571) Profit (loss) for the financial period before taxation ................................................ (3,466) (2,015) Taxation Withholding tax (Note 8) .............................................................................................. (3) (4) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (3,469) (2,019) All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Sterling Bond Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 230 Russell Investments Sterling Bond Fund
Six months ended 30 September 2018
(Unaudited) GBP ‘000
Six months ended 30 September 2017
(Unaudited) GBP ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (3,469) (2,019) Share transactions Reinvestment of deemed distributions on accumulation shares (Note 7) .................... 1,257 1,095 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) .................................................................................................... 6,100 (9,695) Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 3,888 (10,619) Net assets attributable to redeemable participating shareholders Beginning of financial period ...................................................................................... 114,864 111,737 End of financial period ................................................................................................ 118,752 101,118
Russell Investment Company plc Russell Investments Sterling Bond Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Sterling Bond Fund 231
Principal Amount
Fair Value GBP ‘000
Fund %
Transferable Securities (94.31%) Long Term Bonds and Notes (91.07%) Australia (0.35%)
BHP Billiton Finance Ltd GBP 300,000 6.500% due 22/10/77 ....... 338 0.29 Scentre Group Trust 1 / 2 USD 100,000 2.375% due 05/11/19 ....... 76 0.06
414 0.35 Belgium (0.12%)
Anheuser-Busch InBev SA/NV
GBP 100,000 9.750% due 30/07/24 ....... 140 0.12 Brazil (0.68%)
Samarco Mineracao SA USD 400,000 4.125% due 01/11/22 ....... 212 0.18 Votorantim Cimentos SA EUR 650,000 3.500% due 13/07/22 ....... 591 0.50
803 0.68 Cayman Islands (0.74%) Phoenix Group Holdings
300,000 3.250% due 20/10/48 ...... 295 0.25 Yorkshire Building Society
200,000 3.375% due 13/09/28 ...... 187 0.16 83,911 70.66 United States (5.02%)
Apple Inc USD 250,000 4.650% due 23/02/46 ...... 208 0.17 Continental Resources Inc
100,000 4.500% due 15/04/23 ...... 78 0.07 Dell International LLC
175,000 4.420% due 15/06/21 ...... 136 0.11 Digital Stout Holding LLC GBP 450,000 2.750% due 19/07/24 ...... 451 0.38
General Motors Financial Co Inc
1,000,000 2.250% due 06/09/24 .......... 961 0.81
Hewlett Packard Enterprise Co
USD 75,000 4.400% due 15/10/22 ...... 59 0.05 Kraft Heinz Foods Co GBP 210,000 4.125% due 01/07/27 ...... 224 0.19 Newell Brands Inc USD 50,000 5.500% due 01/04/46 ...... 37 0.03
Russell Investment Company plc Russell Investments Sterling Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 234 Russell Investments Sterling Bond Fund
Principal Amount
Fair Value GBP ‘000
Fund %
Rowan Cos Inc 558,000 5.400% due 01/12/42 ....... 321 0.27
SLM Student Loan Trust GBP 130,000 1.350% due 15/12/39 ....... 130 0.11 Sprint Spectrum Co LLC USD 300,000 3.360% due 20/09/21 ....... 230 0.19 U.S. Treasury Note
4,000,000 2.500% due 31/03/23 ....... 3,011 2.54
Verizon Communications Inc
GBP 100,000 4.750% due 17/02/34 ....... 116 0.10 5,962 5.02
Total Long Term Bonds and Notes ............................ 108,149 91.07
Short Term Investments (3.24%) Korea, Republic of (0.29%)
Korea Development Bank USD 450,000 3.000% due 17/03/19 ....... 345 0.29
United Kingdom (2.60%)
U.K. Gilt GBP 3,000,000 3.750% due 07/09/19 ....... 3,082 2.60
Principal Amount
Fair Value GBP ‘000
Fund %
United States (0.35%)
Metropolitan Life Global Funding I
USD 550,000 2.300% due 10/04/19 ...... 421 0.35
Total Short Term Investments ........................ 3,848 3.24
Total Transferable Securities ........................... 111,997 94.31
Number of shares Investment Funds (4.50%) Ireland (4.50%)
76
Russell Investment Company III plc Russell Investments Euro Liquidity Fund - Class R Roll-Up Shares ................ 67 0.06
5,224
Russell Investment Company III plc Russell Investments Sterling Liquidity Fund - Class R Roll-Up Shares ...... 5,279 4.44
Total Investment Funds .... 5,346 4.50
Total Investments excluding Financial Derivative Instruments ..... 117,343 98.81
Financial Derivative Instruments ((0.33)%) Open Futures Contracts (0.02%)
Notional Amount
GBP ‘000
Average Cost Price
GBP
Unrealised Gain (Loss) GBP ‘000
Fund %
161 53.80
3 of Australian 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. 1 0.00
(1,668) (79.41)
21 of Canadian 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 16 0.01
(474) (157.94)
3 of 30 Year Euro BUXL Bond Futures Short Futures Contracts Expiring December 2018 ................................. 8 0.01
(820) (117.10)
7 of Euro-Bobl Futures Short Futures Contracts Expiring December 2018 ................................. 5 0.00
(1,432) (143.22)
10 of Euro-Bund Futures Short Futures Contracts Expiring December 2018 ................................. 18 0.02
(299) (99.60)
3 of Euro Schatz Futures Short Futures Contracts Expiring December 2018 ................................. 0 0.00
10,474 121.79
86 of Long Gilt Futures Long Futures Contracts Expiring December 2018 ................................. (73) (0.06)
Russell Investment Company plc Russell Investments Sterling Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Sterling Bond Fund 235
Notional Amount
GBP ‘000
Average Cost Price
GBP
Unrealised Gain (Loss) GBP ‘000
Fund %
(2,949) (92.16)
32 of U.S. 10 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 34 0.03
(486) (81.00)
3 of U.S. 2 Year Note Futures Short Futures Contracts Expiring December 2018 ................................. 1 0.00
(4,603) (86.86)
53 of U.S. 10 Year Ultra Futures Short Futures Contracts Expiring December 2018 ................................. 32 0.03
772 110.33
7 of U.S. Long Bond Futures Long Futures Contracts Expiring December 2018 ................................. (18) (0.02)
(1,707) (121.91)
14 of U.S. Ultra Bond Futures Short Futures Contracts Expiring December 2018 ................................. 50 0.04
5,007 122.12
41 of Long Gilt Futures Long Futures Contracts Expiring December 2018 ................................. (49) (0.04)
Unrealised gain on open futures contracts ..................................................................... 165 0.14 Unrealised loss on open futures contracts ...................................................................... (140) (0.12) Net unrealised gain (loss) on open futures contracts ................................................ 25 0.02 Open Forward Foreign Currency Exchange Contracts (0.11%)
Unrealised gain on open forward foreign currency exchange contracts ........................ 184 0.16 Unrealised loss on open forward foreign currency exchange contracts ......................... (62) (0.05) Net unrealised gain (loss) on open forward foreign currency exchange contracts . 122 0.11
Russell Investment Company plc Russell Investments Sterling Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 236 Russell Investments Sterling Bond Fund
Interest Rate Swaps ((0.01)%)
Ccy Notional
Amount ‘000 Fund Pays
Fund Receives
Termination Date
Fair Value GBP ‘000
Fund %
GBP 2,000 GBP 6 Month
LIBOR 0.69% 16/03/2020 (11) (0.01) Interest rate swaps at fair value ................................................................................. (11) (0.01) Credit Default Swaps ((0.45)%)
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value GBP ‘000
Fund %
EUR (2,500) iTRAXX Europe 1.00% # 20/12/2020 (40) (0.03)
EUR (5,000) iTRAXX Europe
Crossover 5.00% # 20/12/2023 (493) (0.42) Credit default swaps at fair value ............................................................................... (533) (0.45) Total Financial Derivative Instruments ...................................................................... (397) (0.33)
Fair Value GBP ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.11%) ........................................................................ 117,692 99.11
Total Financial Liabilities at Fair Value through Profit or Loss ((0.63)%) ........................................................................ (746) (0.63)
Net Financial Assets at Fair Value through Profit or Loss (98.48%) ................................................................................. 116,946 98.48
Other Net Assets (1.52%) ..................................................... 1,806 1.52 Net Assets ............................................................................... 118,752 100.00
* Perpetual bonds. ** Partly held as collateral by the brokers and counterparties in connection with collateral purposes for over the counter financial derivative
instruments held by the Fund. # In the event of bankruptcy or, the Fund will pay/receive the notional amount to/from the counterparty.
Analysis of gross assets % of
gross assets Transferable securities admitted to official stock exchange listing ................................................................ 90.96 Transferable securities dealt in on another regulated market .......................................................................... 0.80 Investment funds (UCITS) .............................................................................................................................. 4.38 Exchange traded financial derivative instruments .......................................................................................... 0.14 Over the counter financial derivative instruments .......................................................................................... 0.15 Other assets ..................................................................................................................................................... 3.57
100.00 The brokers for the open futures contracts are Goldman Sachs and UBS AG. The counterparties for the open forward foreign currency exchange contracts are: Bank of America Merrill Lynch HSBC Bank Bank of Montreal National Australia Bank BNP Paribas Royal Bank of Canada Brown Brothers Harriman Societe Generale Commonwealth Bank of Australia Westpac Banking Corporation The counterparty for interest rate swaps is Morgan Stanley. The counterparty for credit default swaps is Morgan Stanley.
Russell Investment Company plc Russell Investments Sterling Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Sterling Bond Fund 237
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
GBP ‘000 Level 2
GBP ‘000 Level 3
GBP ‘000 Total
GBP ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 165 - - 165 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 184 - 184
Total assets ......................................................................... 165 117,526 1 117,692 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (140) - - (140) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (62) - (62) Interest rate swaps at fair value ........................................ - (11) - (11) Credit default swaps at fair value ..................................... - (533) - (533)
Total liabilities ................................................................... (140) (606) - (746) As at 31 March 2018
Level 1
GBP ‘000 Level 2
GBP ‘000 Level 3
GBP ‘000 Total
GBP ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 164 - - 164 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 332 - 332
Total assets ......................................................................... 164 118,455 2 118,621 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (105) - - (105) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (162) - (162) Interest rate swaps at fair value ........................................ - (15) - (15) Credit default swaps at fair value ..................................... - (513) - (513)
Total liabilities ................................................................... (105) (690) - (795)
Russell Investment Company plc Russell Investments Sterling Bond Fund Statement of Changes in Composition of Portfolio Listed below are cumulative investment purchases in excess of 1% of total investment purchases and 20 largest cumulative investment sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 238 Russell Investments Sterling Bond Fund
Portfolio Securities Acquisition Cost
GBP ‘000 Portfolio Securities Disposal Proceeds
GBP ‘000 Russell Investment Company III Plc Russell Investment Company III Plc
Russell Investments Sterling Liquidity Fund Russell Investments Sterling Liquidity Fund Class R Roll-Up Shares 20,159 Class R Roll-Up Shares (22,690)
U.K. Gilt U.K. Gilts 3.750% due 07/09/21 4,375 4.000% due 07/03/22 (3,503)
Pension Insurance Corp Plc 2.250% due 07/09/23 (2,643) 5.625% due 20/09/30 1,495 SNCF Reseau EPIC
Quadgas Finance Plc 4.830% due 25/03/60 (1,164) 3.375% due 17/09/29 1,243 Daimler International Finance BV
U.K. Gilt 1.500% due 18/08/21 (799) 4.000% due 22/01/60 1,109 Lloyds Banking Group Plc
Banque Federative du Credit Mutuel SA 7.625%* (737) 1.875% due 13/12/22 1,099 Westpac Banking Corp
Banco Santander SA 2.125% due 02/05/25 (691) 2.750% due 12/09/23 895 Goldman Sachs Group Inc
U.K. Gilt 3.125% due 25/07/29 (542) 4.250% due 07/12/55 863 Kuwait International Government Bond
HSBC Holdings Plc 3.500% due 20/03/27 (520) 2.175% due 27/06/23 800 Orbit Capital Plc
Daimler International Finance BV 3.375% due 14/06/48 (500) 1.500% due 18/08/21 797 London & Quadrant Housing Trust Ltd
Prudential Plc 3.125% due 28/02/53 (498) 6.250% due 20/10/68 700 Gatwick Funding Ltd
Daimler International Finance BV 3.125% due 28/09/39 (491) 2.000% due 04/09/23 699 Russell Investment Company III Plc
Russell Investment Company III Plc Russell Investments Euro Liquidity Fund Russell Investments Euro Liquidity Fund Class R Roll-Up Shares (486) Class R Roll-Up Shares 552 McKesson Corp
University of Cambridge 3.125% due 17/02/29 (472) 2.350% due 27/06/78 548 Svenska Handelsbanken AB
Goldman Sachs Group Inc 2.450% due 30/03/21 (414) 3.125% due 25/07/29 545 THFC Funding No 3 Plc
Cooperatieve Rabobank UA 5.200% due 11/10/43 (326) 4.625%* 540 Volkswagen Financial Services NV
Peabody Capital No 2 Plc 1.875% due 07/09/21 (299) 3.250% due 14/09/48 538 Housing & Care 21 Blackstone Property Partners Europe Holdings Sarl 3.288% due 08/11/49 (297) 2.200% due 24/07/25 531 HSBC Holdings Plc
Orbit Capital Plc 1.625% due 15/08/25 (264) 3.375% due 14/06/48 492
U.K. Gilt 4.500% due 07/12/42 464
*Perpetual bonds.
Russell Investment Company plc Russell Investments U.K. Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.K. Equity Fund 239
30 September 2018 (Unaudited)
GBP ‘000
31 March 2018 (Audited) GBP ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 139,877 121,483 Cash at bank (Note 2) .................................................................................................. 430 651 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 87 145 Debtors:
Receivable for investments sold .............................................................................. 2 - Receivable on fund shares issued ............................................................................ 26 89 Dividends receivable ............................................................................................... 378 602
140,800 122,970 Liabilities Financial liabilities at fair value through profit or loss ................................................ - (50) Creditors – amounts falling due within one financial year:
(466) (521) Net assets attributable to redeemable participating shareholders ........................ 140,334 122,449
Russell Investment Company plc Russell Investments U.K. Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 240 Russell Investments U.K. Equity Fund
Six months ended 30 September 2018
(Unaudited) GBP ‘000
Six months ended 30 September 2017
(Unaudited) GBP ‘000
Income Dividends .................................................................................................................. 2,527 2,809
Net gain (loss) on investment activities ........................................................................ 8,974 3,730 Total investment income (expense) ........................................................................... 11,501 6,539 Expenses
Total operating expenses ............................................................................................ (764) (808) Net income (expense) .................................................................................................. 10,737 5,731 Finance costs
Distributions (Note 7) ............................................................................................... (1,802) (1,988) Profit (loss) for the financial period before taxation ............................................... 8,935 3,743 Taxation
Withholding tax (Note 8) .......................................................................................... (23) (15) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 8,912 3,728 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments U.K. Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.K. Equity Fund 241
Six months ended 30 September 2018
(Unaudited) GBP ‘000
Six months ended 30 September 2017
(Unaudited) GBP ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 8,912 3,728 Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................ 1,140 1,456 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ 7,833 (21,902)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 17,885 (16,718) Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................. 122,449 147,753 End of financial period ............................................................................................ 140,334 131,035
Russell Investment Company plc Russell Investments U.K. Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 242 Russell Investments U.K. Equity Fund
Number of Shares
Fair Value GBP ‘000
Fund %
Transferable Securities (97.22%) Common Stock (97.22%) Australia (0.42%) Metals and Mining
Hotels, Restaurants and Leisure 26,796 Carnival Plc ........................ 1,277 0.91 62,637 Gym Group Plc ................... 197 0.14 72,210 On the Beach Group Plc ..... 357 0.25 41,622 Thomas Cook Group Plc ..... 24 0.02
Real Estate Investment Trust 34,962 British Land Co Plc ............. 216 0.15 52,195 Land Securities Group Plc ... 461 0.33 10,833 Segro Plc ............................. 69 0.05 48,508 UNITE Group Plc ............... 433 0.31
7,542 Cisco Systems Inc ............... 281 0.20 Textile and Apparel
5,607 Ralph Lauren Corp ............. 591 0.42 Utilities
122,063 XL Techgroup Inc ............... - 0.00 2,602 1.85 Total Common Stock ........ 136,427 97.22
Total Transferable Securities ........................... 136,427 97.22
Investment Funds (2.37%) Ireland (2.37%)
3,297
Russell Investment Company III plc Russell Investments Sterling Liquidity Fund - Class R Roll-Up Shares ...... 3,331 2.37
Total Investment Funds .... 3,331 2.37
Total Investments excluding Financial Derivative Instruments ..... 139,758 99.59
Russell Investment Company plc Russell Investments U.K. Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 246 Russell Investments U.K. Equity Fund
Financial Derivative Instruments (0.08%) Open Futures Contracts (0.08%)
Notional Amount
GBP ‘000
Average Cost Price
GBP
Unrealised Gain (Loss) GBP ‘000
Fund %
3,924
7,266.42 54 of FTSE 100 Index Futures Long Futures Contracts Expiring December 2018 ................................. 119 0.08
Net unrealised gain (loss) on open futures contracts ................................................ 119 0.08 Total Financial Derivative Instruments ..................................................................... 119 0.08
Fair Value GBP '000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.67%) ........................................................................ 139,877 99.67
Other Net Assets (0.33%) ..................................................... 457 0.33 Net Assets ............................................................................... 140,334 100.00
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ....................................................... 96.89 Investment funds (UCITS) ......................................................................................................................... 2.37 Exchange traded financial derivative instruments ..................................................................................... 0.08 Other assets ................................................................................................................................................ 0.66
100.00 The broker for the open futures contracts is UBS. Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
GBP ‘000 Level 2
GBP ‘000 Level 3
GBP ‘000 Total
GBP ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Transferable securities .................................................. 136,427 - - 136,427 Investment funds ........................................................... - 3,331 - 3,331 Unrealised gain on open futures contracts .................... 119 - - 119
Total assets ......................................................................... 136,546 3,331 - 139,877
Russell Investment Company plc Russell Investments U.K. Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.K. Equity Fund 247
As at 31 March 2018
Level 1
GBP ‘000 Level 2
GBP ‘000 Level 3
GBP ‘000 Total
GBP ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 117,892 3,591 - 121,483 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (50) - - (50) Total liabilities ................................................................... (50) - - (50)
Russell Investment Company plc Russell Investments U.K. Equity Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 248 Russell Investments U.K. Equity Fund
Portfolio Securities Acquisition Cost
GBP ‘000 Portfolio Securities Disposal Proceeds
GBP ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments Sterling Liquidity Fund Russell Investments Sterling Liquidity Fund Class R Roll-Up Shares 31,500 Class R Roll-Up Shares (31,733)
Capita PLC 2,537 HSBC Holdings Plc (2,132) GlaxoSmithKline Plc 1,941 GlaxoSmithKline Plc (903) Royal Bank of Scotland Group Plc 1,749 Royal Dutch Shell Plc (871) BT Group Plc 1,097 Cisco Systems Inc (702) Royal Dutch Shell Plc 971 Glencore Plc (682) Travis Perkins Plc 754 Sky Plc (675) Rolls-Royce Holdings Plc 712 GVC Holdings Plc (662) Shire Plc 676 Mondi Plc (598) SIG Plc 611 Helical Plc (588) British American Tobacco Plc 605 Aviva Plc (569) Beiersdorf AG 600 Vodafone Group Plc (566) Merck KGaA 590 Centrica Plc (542) Kingfisher Plc 589 BT Group Plc (524) Melrose Industries Plc 570 Bayer AG (514) Grafton Group Plc 543 Informa Plc (470) Wizz Air Holdings Plc 540 easyJet Plc (466) BP Plc 530 Tullett Prebon Plc (454) Marks & Spencer Group Plc 523 NEX Group Plc (451) Barclays Plc 515 Capita Plc (438)
Russell Investment Company plc Russell Investments U.K. Index Linked Fund Balance Sheet As at 31 March 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.K. Index Linked Fund 249
31 March 2018* (Audited) GBP ‘000
Assets Cash at bank (Note 2) ................................................................................................................................. 30 30 Liabilities Creditors – amounts falling due within one financial year:
Net assets attributable to redeemable participating shareholders ....................................................... - * As the Fund terminated on 24 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Russell Investments U.K. Index Linked Fund Profit and Loss Account For the financial period ended 30 September 2017.
The accompanying notes are an integral part of the financial statements. 250 Russell Investments U.K. Index Linked Fund
Six months ended 30 September 2017*
(Unaudited) GBP ‘000
Income Interest income ........................................................................................................................................ 166
Net gain (loss) on investment activities ..................................................................................................... (628) Total investment income (expense) ......................................................................................................... (462) Expenses
Management fees (Note 4) ...................................................................................................................... (10) Depositary fees (Note 5) ......................................................................................................................... (1) Administration and transfer agency fees (Note 5) ................................................................................... (6) Audit fees ................................................................................................................................................ (7) Professional fees ...................................................................................................................................... (4) Other fees ................................................................................................................................................ (31)
Total operating expenses ......................................................................................................................... (59) Net income (expense) ................................................................................................................................ (521) Finance costs
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ........................................................................................................................ (715) All amounts arose solely from terminating operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account. * As the Fund terminated on 24 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Russell Investments U.K. Index Linked Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the financial period ended 30 September 2017.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Russell Investments U.K. Index Linked Fund 251
Six months ended 30 September 2017*
(Unaudited) GBP ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ........................................................................................................................ (715) Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................................................ 194 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ...................................................................................................................... (92)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders (613) Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................................................. 15,358 End of financial period ............................................................................................................................ 14,745
* As the Fund terminated on 24 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Russell Investments U.K. Long Dated Gilt Fund Balance Sheet As at 31 March 2018
The accompanying notes are an integral part of the financial statements. 252 Russell Investments U.K. Long Dated Gilt Fund
31 March 2018* (Audited) GBP ‘000
Assets Cash at bank (Note 2) ................................................................................................................................ 30 30 Liabilities Creditors – amounts falling due within one financial year:
Net assets value attributable to redeemable participating shareholders ............................................ - * As the Fund terminated on 26 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Russell Investments U.K. Long Dated Gilt Fund Profit and Loss Account For the financial period ended 30 September 2017
The accompanying notes are an integral part of the financial statements.
Russell Investments U.K. Long Dated Gilt Fund 253
Six months ended 30 September 2017*
(Unaudited) GBP ‘000
Income Interest income ........................................................................................................................................ 149
Net gain (loss) on investment activities (Note 5) ....................................................................................... (501) Total investment income (expense) ......................................................................................................... (352) Expenses
Management fees (Note 4) ...................................................................................................................... (8) Depositary fees (Note 5) ......................................................................................................................... (1) Sub-custodian fees (Note 5) .................................................................................................................... (1) Administration and transfer agency fees (Note 5) ................................................................................... (7) Audit fees ................................................................................................................................................ (7) Professional fees ...................................................................................................................................... (3) Other fees ................................................................................................................................................ (31)
Total operating expenses ......................................................................................................................... (58) Net income (expense) ................................................................................................................................ (410) Finance costs
Distributions (Note 9) .............................................................................................................................. (106) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ........................................................................................................................ (516) All amounts arose solely from terminating operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account. * As the Fund terminated on 26 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Russell Investments U.K. Long Dated Gilt Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the financial period ended 30 September 2017
The accompanying notes are an integral part of the financial statements. 254 Russell Investments U.K. Long Dated Gilt Fund
Six months ended 30 September 2017*
(Unaudited) GBP ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ....................................................................................................................... (516) Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 9) ............................................... 106 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 11) ................................................................................................................... (590)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders . (1,000) Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................................................. 13,214 End of financial period ........................................................................................................................... 12,214
* As the Fund terminated on 26 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Russell Investments U.S. Bond Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Bond Fund 255
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ........................................................ 96,907 108,079 Cash at bank (Note 2) ..................................................................................................... 1,136 1,443 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................... 739 536 Debtors:
Receivable for investments sold .................................................................................. 3,874 4,381 Receivable on fund shares issued ................................................................................ 22 - Interest receivable ....................................................................................................... 607 536
103,285 114,975 Liabilities Financial liabilities at fair value through profit or loss ................................................... (408) (564) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) ....................................................................................................................... (37) (30) Payable for investments purchased ............................................................................. (8,429) (11,423) Distributions payable on income share classes ........................................................... (516) (520) Management fees payable ........................................................................................... (41) (44) Depositary fees payable .............................................................................................. (16) (2) Sub-custodian fees payable ......................................................................................... (3) (7) Administration fees payable ........................................................................................ (5) (3) Audit fees payable ....................................................................................................... (9) (18) Other fees payable ....................................................................................................... (112) (106)
(9,576) (12,717) Net assets attributable to redeemable participating shareholders ........................... 93,709 102,258
Russell Investment Company plc Russell Investments U.S. Bond Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 256 Russell Investments U.S. Bond Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Interest income .......................................................................................................... 1,477 1,441
Net gain (loss) on investment activities ........................................................................ (9,706) 7,252 Total investment income (expense) ........................................................................... (8,229) 8,693 Expenses
Total operating expenses ............................................................................................ (344) (368) Net income (expense) .................................................................................................. (8,573) 8,325 Finance costs
Distributions (Note 7) ............................................................................................... (1,117) (1,086) Profit (loss) for the financial period before taxation ............................................... (9,690) 7,239 Taxation
Withholding tax (Note 8) .......................................................................................... (6) (14) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (9,696) 7,225 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments U.S. Bond Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Bond Fund 257
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (9,696) 7,225 Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) .................. 48 100 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................. 1,099 (6,013)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ......................................................................................... (8,549) 1,312 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................... 102,258 104,803 End of financial period .............................................................................................. 93,709 106,115
Russell Investment Company plc Russell Investments U.S. Bond Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 258 Russell Investments U.S. Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
Transferable Securities (95.80%) Long Term Bonds and Notes (91.15%) Austria (0.43%)
ESAL GmbH USD 200,000 6.250% due 05/02/23 ....... 199 0.21 Suzano Austria GmbH
Athene Holding Ltd 110,000 4.125% due 12/01/28 ....... 103 0.11
Marvell Technology Group Ltd
80,000 4.200% due 22/06/23 ....... 80 0.09 Validus Holdings Ltd
165,000 8.875% due 26/01/40 ....... 238 0.25 421 0.45 Canada (0.74%) Bank of Montreal 80,000 2.100% due 12/12/19 ....... 79 0.08 95,000 1.900% due 27/08/21 ....... 91 0.10
Canadian Imperial Bank of Commerce
195,000 3.500% due 13/09/23 ....... 194 0.21 Cenovus Energy Inc 120,000 4.250% due 15/04/27 ....... 116 0.12 40,000 6.750% due 15/11/39 ....... 45 0.05
Royal Bank of Canada 90,000 2.125% due 02/03/20 ....... 89 0.09
Toronto-Dominion Bank 85,000 2.125% due 07/04/21 ....... 83 0.09 697 0.74 Cayman Islands (0.27%)
Braskem Finance Ltd 185,000 6.450% due 03/02/24 ....... 198 0.21
PSP Capital Inc 250,000 Zero Coupon due 30/08/19 250 0.27 United States (0.96%)
Ford Motor Credit Co LLC 415,000 3.060% due 15/04/19 ...... 408 0.43
ING US Funding LLC 250,000 Zero Coupon due 12/04/19 250 0.27
Sheffield Receivable Corp 250,000 Zero Coupon due 05/11/18 249 0.26 907 0.96 Total Commercial Paper .. 1,407 1.50 Money Market Instruments (0.57%) United States (0.57%) United States Treasury Bill 535,000 Zero Coupon due 11/10/18 534 0.57
Total Money Market Instruments ....................... 534 0.57
Number of shares Investment Funds (3.58%) Ireland (3.58%)
3,259
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 3,357 3.58
Total Investment Funds .... 3,357 3.58
Total Investments excluding Financial Derivative Instruments ..... 96,318 102.78
Financial Derivative Instruments (0.20%)
Open Futures Contracts ((0.19)%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
721
120.25
6 of U.S. 10 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (9) (0.01)
794
113.38
7 of U.S. 5Yr Note Futures Long Futures Contracts Expiring December 2018 ................................. (6) (0.01)
(479)
(159.74)
3 of U.S. Ultra Bond Futures Short Futures Contracts Expiring December 2018 ................................. 16 0.02
Russell Investment Company plc Russell Investments U.S. Bond Fund Schedule of Investments - continued
30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Bond Fund 267
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
4,040
103.60
39 of Canada 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (39) (0.04)
3,282
113.17
29 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (20) (0.02)
(6,208)
(159.19)
39 of Long Gilt Future Short Futures Contracts Expiring December 2018 ................................. 57 0.06
(14,875)
(185.94)
80 of Euro-Bund Future Short Futures Contracts Expiring December 2018 ................................. 121 0.13
2,956
105.57
14 of U.S. 2 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (6) (0.01)
21,004
120.02
175 of U.S. 10 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (217) (0.23)
3,016
143.63
21 of U.S. Long Bond Futures Long Futures Contracts Expiring December 2018 ................................. (66) (0.07)
1,563
71.05
22 of Austria 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (14) (0.01)
Unrealised gain on open futures contracts ...................................................................... 194 0.21 Unrealised loss on open futures contracts ....................................................................... (377) (0.40) Net unrealised gain (loss) on open futures contracts ................................................. (183) (0.19) Open Forward Foreign Currency Exchange Contracts (0.30%)
Unrealised gain on open forward foreign currency exchange contracts ............................... 308 0.33 Unrealised loss on open forward foreign currency exchange contracts ................................ (31) (0.03) Net unrealised gain (loss) on open forward foreign currency exchange contracts ....... 277 0.30
Russell Investment Company plc Russell Investments U.S. Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 268 Russell Investments U.S. Bond Fund
Credit Default swaps at fair value .............................................................................. 87 0.09 Total Financial Derivative Instruments ..................................................................... 181 0.20
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (103.41%) ...................................................................... 96,907 103.41
Total Financial Liabilities at Fair Value through Profit or Loss ((0.43)%) ........................................................................ (408) (0.43)
Net Financial Assets at Fair Value Through Profit or Loss (102.98%) ...................................................................... 96,499 102.98
Other Net Liabilities ((2.98)%) ............................................ (2,790) (2.98) Net Assets ............................................................................... 93,709 100.00
# In the event of bankruptcy or, the fund will pay/receive the notional amount to/from the counterparty. * Perpetual bonds. ** Partly held as collateral by the brokers and counterparties in connection with collateral purposes for over the counter financial derivative instruments held by the Fund.
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing or traded on a regulated market .......................................................................................................................... 52.18 Transferable securities dealt in on another regulated market ......................................................................... 28.87 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) ................................ 6.42 Certificates of deposit .................................................................................................................................... 1.21 Commercial paper .......................................................................................................................................... 1.36 Investment funds (UCITS) ............................................................................................................................. 3.25 Exchange traded financial derivative instruments ......................................................................................... 0.19 Over the counter financial derivative instruments ......................................................................................... 0.38 Other assets .................................................................................................................................................... 6.14
100.00 The brokers for the open futures contracts are Goldman Sachs and HSBC. The counterparties for the open forward foreign currency exchange contracts are:
Bank of Montreal State Street Bank and Trust Company Commonwealth Bank of Australia Westpac Banking Corp Royal Bank of Canada
The counterparty for the credit default swaps is Goldman Sachs.
Russell Investment Company plc Russell Investments U.S. Bond Fund Schedule of Investments - continued
30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Bond Fund 269
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 194 - - 194 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 308 - 308 Credit default swaps at fair value ..................................... - 87 - 87
Total assets ......................................................................... 194 96,713 - 96,907 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (377) - - (377) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (31) - (31)
Total liabilities ................................................................... (377) (31) - (408) As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 315 - - 315 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 1,758 - 1,758 Credit default swaps at fair value ..................................... - 68 - 68
Total assets ......................................................................... 315 107,614 150 108,079 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (149) - - (149) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (415) - (415)
Total liabilities ................................................................... (149) (415) - (564)
Russell Investment Company plc Russell Investments U.S. Bond Fund Statement of Changes in Composition of Portfolio Listed below are 20 largest cumulative investment purchases and cumulative investment sales in excess of 1% of total investment sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 270 Russell Investments U.S. Bond Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II - Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares 40,598 Class R Roll-Up Shares (42,827)
U.S. Treasury Note Fannie Mae Pool 2.875% due 30/04/2025 8,412 3.500% due 15/05/2046 (3,138)
Fannie Mae Pool 3.500% due 15/08/2048 (3,004) 3.500% due 15/08/2048 2,996 U.S. Treasury Note
U.S. Treasury Note 1.375% due 30/09/2020 (2,781) 2.875% due 15/05/2028 2,532 Fannie Mae Pool
Fannie Mae Pool 3.000% due 15/05/2046 (2,645) 3.500% due 15/07/2048 2,491 U.S. Treasury Note 3.500% due 15/06/2048 2,465 2.875% due 15/05/2028 (2,537) 3.000% due 15/07/2048 2,230 Fannie Mae Pool 3.000% due 15/06/2048 2,151 3.500% due 15/07/2048 (2,489)
U.S. Treasury Bond 3.500% due 15/06/2048 (2,484) 3.000% due 15/02/2048 2,149 3.000% due 15/07/2048 (2,223)
Fannie Mae Pool U.S. Treasury Bond 3.500% due 15/09/2046 2,088 2.750% due 15/08/2047 (2,175) 3.000% due 15/09/2046 2,086 Fannie Mae Pool 3.500%* 2,082 3.000% due 15/06/2048 (2,169) 3.000%* 2,056 U.S. Treasury Note 3.000% due 15/08/1948 2,051 2.750% due 15/02/2028 (2,163) 3.500%* 1,936 Fannie Mae Pool 3.000%* 1,935 3.500% due 15/09/2046 (2,084)
U.S. Treasury Bill 3.000% due 15/09/2046 (2,081) Zero Coupon due 17/05/2018 1,783 3.000% due 15/08/2048 (2,064)
U.S. Treasury Notes 3.500%* (1,938) 2.500% due 31/03/2023 1,609 3.000%* (1,936) 2.750% due 31/07/2023 1,533 3.500% due 15/04/2046 (1,897) 2.875% due 31/07/2025 1,297 U.S. Treasury Note 1.250% due 31/10/2021 (1,783) U.S. Treasury Bond
3.000% due 15/02/2048 (1,609) U.S. Treasury Notes 2.500% due 31/03/2023 (1,593) 2.625% due 28/02/2023 (1,564) 2.750% due 31/07/2023 (1,538) U.S. Treasury Bond 2.750% due 15/11/2047 (1,281) * Perpetual bonds.
Russell Investment Company plc Russell Investments U.S. Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Equity Fund 271
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 780,953 755,841 Cash at bank (Note 2) .................................................................................................. 2,196 5,432 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 449 1,578 Debtors:
Receivable for investments sold .............................................................................. 1,275 2,634 Receivable on fund shares issued ............................................................................. 113 4,516 Dividends receivable ................................................................................................ 640 911
785,626 770,912 Liabilities Financial liabilities at fair value through profit or loss ................................................ - (1,320) Creditors – amounts falling due within one financial year:
Net assets attributable to redeemable participating shareholders ........................ 783,533 766,116
Russell Investment Company plc Russell Investments U.S. Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 272 Russell Investments U.S. Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 7,238 7,389
Net gain (loss) on investment activities ........................................................................ 55,547 52,906 Total investment income (expense) ........................................................................... 62,785 60,295 Expenses
Total operating expenses ............................................................................................ (4,528) (4,400) Net income (expense) .................................................................................................. 58,257 55,895 Finance costs
Distributions (Note 7) ............................................................................................... (1,461) (1,658) Profit (loss) for the financial period before taxation ............................................... 56,796 54,237
Taxation
Withholding tax (Note 8) .......................................................................................... (1,930) (1,900) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 54,866 52,337 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments U.S. Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Equity Fund 273
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 54,866 52,337 Share transactions Reinvestment of deemed distributions on accumulation shares (Note 7) .................... 1,342 1,550 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) .................................................................................................... (38,791) (42,281) Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 17,417 11,606 Net assets attributable to redeemable participating shareholders Beginning of financial period ....................................................................................... 766,116 736,142 End of financial period ................................................................................................. 783,533 747,748
Russell Investment Company plc Russell Investments U.S. Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 274 Russell Investments U.S. Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (97.05%) Common Stock (97.05%) Belgium (0.70%) Beverages
24,545 Diageo Plc ADR .................. 3,477 0.44 Health Care Equipment and Supplies
2,352 STERIS Plc ......................... 269 0.03 Oil and Gas
93,500 BP Plc ADR ........................ 4,311 0.55 Telecommunications
22,200 ARRIS International Plc ...... 577 0.07 8,634 1.09 United States (87.49%) Aerospace and Defence
19,609 Boeing Co ........................... 7,293 0.93 2,993 General Dynamics Corp ...... 613 0.08 7,196 Heico Corp .......................... 666 0.09 2,504 L3 Technologies Inc ............ 532 0.07 3,900 Lockheed Martin Corp ........ 1,349 0.17 3,306 Northrop Grumman Corp .... 1,049 0.13 4,257 Raytheon Co ........................ 880 0.11 6,467 Rockwell Collins Inc ........... 908 0.12 6,902 United Technologies Corp ... 965 0.12
Agriculture 11,370 Altria Group Inc .................. 686 0.09 53,641 Archer-Daniels-Midland Co 2,697 0.34
3,028
Philip Morris International Inc ....................................... 247 0.03
Airlines 52,087 American Airlines Group Inc 2,153 0.28 45,583 Delta Air Lines Inc .............. 2,636 0.34 7,610 Southwest Airlines Co ......... 475 0.06
18,900
United Continental Holdings Inc ....................................... 1,683 0.21
Auto Components 42,131 Goodyear Tire & Rubber Co 985 0.13 7,100 Visteon Corp ....................... 660 0.08
Automobiles 235,900 Ford Motor Co ..................... 2,182 0.28 152,766 General Motors Co .............. 5,144 0.65 2,000 Navistar International Corp . 77 0.01
Banks 185,743 Bank of America Corp ........ 5,472 0.70
29,136
Bank of New York Mellon Corp ..................................... 1,486 0.19
Media 268,399 Comcast Corp ...................... 9,504 1.21 16,700 News Corp ........................... 220 0.03 82,830 Walt Disney Co ................... 9,686 1.24
Metals and Mining 5,700 Peabody Energy Corp .......... 203 0.03 7,425 Royal Gold Inc .................... 572 0.07
Miscellaneous Manufacturers 2,202 3M Co ................................. 464 0.06 3,157 Carlisle Cos Inc ................... 385 0.05 41,684 General Electric Co ............. 471 0.06 27,150 Illinois Tool Works Inc ....... 3,831 0.49 13,118 Textron Inc .......................... 938 0.12
Oil and Gas 45,514 Anadarko Petroleum Corp ... 3,068 0.39 6,046 Andeavor ............................. 928 0.12
22,472
Centennial Resource Development Inc/DE ........... 491 0.06
685,504 87.49 Total Common Stock ........ 760,392 97.05
Total Transferable Securities ........................... 760,392 97.05
Investment Funds (2.58%) Ireland (2.58%)
19,694
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 20,283 2.58
Total Investment Funds .... 20,283 2.58
Total Investments excluding Financial Derivative Instruments ..... 780,675 99.63
Russell Investment Company plc Russell Investments U.S. Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 280 Russell Investments U.S. Equity Fund
Financial Derivative Instruments (0.04%) Open Futures Contracts (0.01%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
11,754
2,902.31
81 of S&P 500 E Mini Index Futures Long Futures Contracts Expiring December 2018 ................................. 68 0.01
Net unrealised gain (loss) on open futures contracts ................................................. 68 0.01 Open Forward Foreign Currency Exchange Contracts (0.03%)
Net unrealised gain (loss) on open forward foreign currency exchange contracts .. 210 0.03 Total Financial Derivative Instruments ....................................................................... 278 0.04
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.67%) ......................................................................... 780,953 99.67
Other Net Assets (0.33%) ...................................................... 2,580 0.33 Net Assets ................................................................................ 783,533 100.00
Abbreviation used: ADR - American Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ......................................................... 96.79Investment funds (UCITS) ........................................................................................................................... 2.58Over the counter financial derivative instruments ....................................................................................... 0.03Exchange traded financial derivative instruments ....................................................................................... 0.01Other assets .................................................................................................................................................. 0.59
100.00 The broker for the open futures contracts is Bank of America Merrill Lynch. The counterparties for the open forward foreign currency exchange contracts are: Bank of Montreal State Street Bank and Trust Company Commonwealth Bank of Australia Westpac Banking Corporation Royal Bank of Canada
Russell Investment Company plc Russell Investments U.S. Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Equity Fund 281
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ................ 68 - - 68 Unrealised gain on open forward foreign currency exchange contracts .................................................. - 210 - 210
Total assets ......................................................................... 760,460 20,493 - 780,953 As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open forward foreign currency exchange contracts .................................................. - 1,158 - 1,158
Total assets ......................................................................... 715,778 40,063 - 755,841 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (1,056) - - (1,056) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (264) - (264)
Total liabilities ................................................................... (1,056) (264) - (1,320)
Russell Investment Company plc Russell Investments U.S. Equity Fund Statement of Changes in Composition of Portfolio Listed below are 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 282 Russell Investments U.S. Equity Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 182,520 Class R Roll-Up Shares (201,419)
Facebook Inc 16,737 Walt Disney Co (14,692) Amazon.com Inc 12,068 Oracle Corp (12,697) Coca-Cola Co 11,928 Intel Corp (12,587) Alphabet Inc (Class C) 11,894 UnitedHealth Group Inc (12,132) Boeing Co 11,825 Citigroup Inc (11,698) DowDuPont Inc 11,745 DowDuPont Inc (11,334) Microsoft Corp 11,027 Coca-Cola Co (11,024) NVIDIA Corp 10,055 Apple Inc (10,957) Kraft Heinz Co 9,009 Microsoft Corp (10,839) Alibaba Group Holding Ltd ADR 8,992 Procter & Gamble Co (10,653) Aetna Inc 8,770 Delta Air Lines Inc (10,118) QUALCOMM Inc 8,569 Boeing Co (9,659) Walt Disney Co 7,899 Morgan Stanley (8,919) Walmart Inc 7,478 Aetna Inc (8,865) Netflix Inc 7,466 Walmart Inc (8,800) Mastercard Inc 7,022 Pinnacle Foods Inc (8,799) McDonald's Corp 6,908 Comcast Corp (8,643) Celgene Corp 6,870 Capital One Financial Corp (8,564) Marvell Technology Group Ltd 6,758 Merck & Co Inc (8,380)
Russell Investment Company plc Russell Investments U.S. Small Cap Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Small Cap Equity Fund 283
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ...................................................... 117,881 118,107 Cash at bank (Note 2) .................................................................................................. 658 852 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 117 189 Debtors:
Receivable on fund shares issued ............................................................................. 20 118 Dividends receivable ................................................................................................ 75 92
118,751 119,358 Liabilities Financial liabilities at fair value through profit or loss ................................................ (39) (155) Creditors – amounts falling due within one financial year:
(265) (498) Net assets attributable to redeemable participating shareholders ........................ 118,486 118,860
Russell Investment Company plc Russell Investments U.S. Small Cap Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 284 Russell Investments U.S. Small Cap Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 725 785
Net gain (loss) on investment activities ........................................................................ 13,093 10,031 Total investment income (expense) ........................................................................... 13,818 10,816 Expenses
Total operating expenses ............................................................................................ (937) (949) Net income (expense) .................................................................................................. 12,881 9,867 Finance costs
Distributions (Note 7) ............................................................................................... - (5) Profit (loss) for the financial period before taxation ............................................... 12,881 9,862 Taxation
Withholding tax (Note 8) .......................................................................................... (202) (228) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 12,679 9,634 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments U.S. Small Cap Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments U.S. Small Cap Equity Fund 285
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 12,679 9,634 Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) .................. - 5 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 8) ................................................................................................. (13,053) (26,919)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ......................................................................................... (374) (17,280) Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................... 118,860 134,919 End of financial period .............................................................................................. 118,486 117,639
Russell Investment Company plc Russell Investments U.S. Small Cap Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 286 Russell Investments U.S. Small Cap Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (94.98%) Common Stock (94.98%) Australia (0.04%) Chemicals
12,851 Nomad Foods Ltd ................ 260 0.22 295 0.25 Total Common Stock ........ 112,537 94.98
Total Transferable Securities ............................ 112,537 94.98
Number of Shares
Fair Value USD ‘000
Fund %
Investment Funds (4.51%) Ireland (4.51%)
5,189
Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares ...... 5,344 4.51
Total Investment Funds .... 5,344 4.51
Total Investments excluding Financial Derivative Instruments ..... 117,881 99.49
Financial Derivative Instruments ((0.03)%) Open Futures Contracts ((0.03)%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
2,931
1,723.97
34 of Russell 2000 E-Mini Index Futures Long Futures Contracts Expiring December 2018 ....................................... (39) (0.03)
Net unrealised gain (loss) on open futures contracts ........................................................ (39) (0.03) Total Financial Derivative Instruments ............................................................................. (39) (0.03)
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.49%) .......................................................................................... 117,881 99.49
Total Financial Liabilities at Fair Value through Profit or Loss ((0.03)%) ......................................................................................... (39) (0.03)
Net Financial Assets at Fair Value Through Profit or Loss (99.46%) .......................................................................................... 117,842 99.46
Other Net Assets (0.54%) .............................................................. 644 0.54 Net Assets ........................................................................................ 118,486 100.00
Abbreviation used: ADR - American Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing .... 94.77 Investment funds (UCITS) ........................................................................................................................ 4.50 Other assets ............................................................................................................................................... 0.73
100.00 The broker for the open futures contracts is Bank of America Merrill Lynch.
Russell Investment Company plc Russell Investments U.S. Small Cap Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 296 Russell Investments U.S. Small Cap Equity Fund
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 112,537 5,344 - 117,881 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (39) - - (39) Total liabilities ................................................................... (39) - - (39) As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 111,484 6,623 - 118,107 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (155) - - (155) Total liabilities ................................................................... (155) - - (155)
Russell Investment Company plc Russell Investments U.S. Small Cap Equity Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Russell Investments U.S. Small Cap Equity Fund 297
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 25,354 Class R Roll-Up Shares (26,680)
Skechers U.S.A. Inc 473 Integrated Device Technology Inc (887) Big Lots Inc 452 VeriFone Systems Inc (882) LHC Group Inc 428 OFG Bancorp (581) Hain Celestial Group Inc 424 AMN Healthcare Services Inc (485) Super Micro Computer Inc 399 Jack Henry & Associates Inc (431) Cooper Tire & Rubber Co 393 Rayonier Inc (422) Strategic Education Inc 393 Five9 Inc (415) PlayAGS Inc 360 Abaxis Inc (394) Nabors Industries Ltd 355 Chegg Inc (389) James River Group Holdings Ltd 325 NeoGenomics Inc (382) Spire Inc 307 Heico Corp (355) Pilgrim's Pride Corp 298 Aspen Insurance Holdings Ltd (352) Perspecta Inc 292 Whiting Petroleum Corp (345) Extended Stay America Inc 286 Supernus Pharmaceuticals Inc (340) KLX Inc 285 PBF Energy Inc (332) TPI Composites Inc 284 Penske Automotive Group Inc (322) Apogee Enterprises Inc 275 AMAG Pharmaceuticals Inc (317) K2M Group Holdings Inc 270 Advanced Drainage Systems Inc (314) Commercial Metals Co 261 Acushnet Holdings Corp (302)
Russell Investment Company plc Russell Investments World Equity Fund II Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 298 Russell Investments World Equity Fund II
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ...................................................... 881,507 905,833 Cash at bank (Note 2) .................................................................................................. 15,244 19,103 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 8,931 12,400 Debtors:
Receivable for investments sold .............................................................................. 6,153 2,314 Receivable on fund shares issued ............................................................................. 443 7,685 Dividends receivable ................................................................................................ 1,458 1,990
913,736 949,325 Liabilities Financial liabilities at fair value through profit or loss ................................................ (6,891) (6,514) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) .................................................................................................................... (90) (450) Payable for investments purchased .......................................................................... (10,396) (3,520) Payable on fund shares redeemed ............................................................................ (294) (2,342) Management fees payable ........................................................................................ (713) (760) Depositary fees payable ........................................................................................... (54) (17) Sub-custodian fees payable ...................................................................................... (78) (64) Administration fees payable .................................................................................... (43) (29) Audit fees payable ................................................................................................... (13) (26)
(18,572) (13,722) Net assets attributable to redeemable participating shareholders ......................... 895,164 935,603
Russell Investment Company plc Russell Investments World Equity Fund II Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments World Equity Fund II 299
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 11,522 8,559
Net gain (loss) on investment activities ........................................................................ (17,782) 104,786 Total investment income (expense) ............................................................................ (6,260) 113,345 Expenses
Total operating expenses ............................................................................................ (5,079) (4,200) Net income (expense) .................................................................................................. (11,339) 109,145 Finance costs
Distributions (Note 7) ............................................................................................... (4,727) (4,090) Profit (loss) for the financial period before taxation ................................................ (16,066) 105,055 Taxation (Note 8)
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (17,898) 104,612 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments World Equity Fund II Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 300 Russell Investments World Equity Fund II
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (17,898) 104,612 Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................ 4,727 4,090 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ...................................................................................... (27,268) 70,182
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (40,439) 178,884 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................. 935,603 666,375 End of financial period ............................................................................................ 895,164 845,259
Russell Investment Company plc Russell Investments World Equity Fund II Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments World Equity Fund II 301
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (94.49%) Common Stock (93.95%) Australia (1.07%) Airlines
Aerospace and Defence 11,350 Boeing Co ........................... 4,221 0.47 3,002 Lockheed Martin Corp ........ 1,039 0.12 14,324 Raytheon Co ........................ 2,960 0.33 28,647 United Technologies Corp ... 4,005 0.45
Airlines 3,448 Delta Air Lines Inc .............. 199 0.02 2,419 Southwest Airlines Co ......... 151 0.02
1,679
United Continental Holdings Inc ....................................... 150 0.02
Automobiles 10,633 Ford Motor Co ..................... 98 0.01 6,656 General Motors Co .............. 224 0.03 2,802 PACCAR Inc ....................... 191 0.02
Banks 114,160 Bank of America Corp ........ 3,363 0.38 69,272 Citigroup Inc ....................... 4,970 0.56 10,876 Goldman Sachs Group Inc .. 2,439 0.27
Number of Shares
Fair Value USD ‘000
Fund %
29,684 JPMorgan Chase & Co ....... 3,350 0.37 48,448 Morgan Stanley ................... 2,256 0.25
Banks
1,628
Bank of New York Mellon Corp .................................... 83 0.01
2,530 BB&T Corp ........................ 123 0.01 3,926 Capital One Financial Corp 373 0.04 33,700 Citizens Financial Group Inc 1,300 0.15 36,364 Fifth Third Bancorp ............ 1,015 0.11 24,576 Huntington Bancshares Inc . 367 0.04
1,281
PNC Financial Services Group Inc ............................ 174 0.02
4,133 Regions Financial Corp ...... 76 0.01 1,034 State Street Corp ................. 87 0.01 1,559 SunTrust Banks Inc ............. 104 0.01 78,955 US Bancorp ......................... 4,170 0.47 158,867 Wells Fargo & Co ............... 8,350 0.93
Media 10,213 Comcast Corp ...................... 362 0.04 5,905 Discovery Inc ...................... 189 0.02 1,826 Walt Disney Co ................... 214 0.03
Metals and Mining 8,838 Freeport-McMoRan Inc ....... 123 0.01
Miscellaneous Manufacturers 20,917 3M Co ................................. 4,407 0.49
96,924 J2 Acquisition Ltd ............... 930 0.11 1,215 0.14 Total Common Stock ........ 840,995 93.95 Preferred Stock (0.45%) Brazil (0.10%) Retail Trade
233,120 Lojas Americanas SA ......... 927 0.10 Germany (0.03%) Automobiles
1,364 Volkswagen AG .................. 240 0.03 Korea, Republic of (0.32%) Semiconductor Equipment and Products
84,405 Samsung Electronics Co Ltd 2,881 0.32 Total Preferred Stock ....... 4,048 0.45 Warrants (0.09%) United Kingdom (0.09%)
43,911 HSBC Bank ........................ 515 0.06 37,895 Savola Group ...................... 307 0.03
Total Warrants .................. 822 0.09
Total Transferable Securities ........................... 845,865 94.49
Investment Funds (3.30%) Ireland (3.30%)
9
Russell Investment Company III plc - Russell Investments Sterling Liquidity Fund - Class R Roll-Up Shares ...... 12 0.01
28,599
Russell Investment Company III plc - Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 29,461 3.29
Total Investment Funds .... 29,473 3.30
Total Investments excluding Financial Derivative Instruments ..... 875,338 97.79
Russell Investment Company plc Russell Investments World Equity Fund II Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 314 Russell Investments World Equity Fund II
Financial Derivative Instruments ((0.08)%) Open Futures Contracts ((0.25)%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
1,003
9,119.95
11 of Swiss Market Index Futures Long Futures Contracts Expiring December 2018 ....................................... 18 0.00
1,713
9,517.84
18 of FTSE 100 Index Long Futures Contracts Expiring December 2018 ....................................... 44 0.00
(47,999)
(9,504.84)
505 of FTSE 100 Index Short Futures Contracts Expiring December 2018 ....................................... (1,303) (0.15)
34,151
1,025.54
666 of MSCI Emerging Markets Long Futures Contracts Expiring December 2018 ....................................... 804 0.09
32,237
2,904.21
222 of S&P 500 E Mini Index Long Futures Contracts Expiring December 2018 ....................................... 164 0.02
1,437
2,053.50
7 of S&P Mid 400 E Mini Long Futures Contracts Expiring December 2018 ....................................... (20) 0.00
1,415
14,147.12
4 of DAX Index Future Long Futures Contracts Expiring December 2018 ....................................... 7 0.00
29,883
3,952.81
756 of Euro Stoxx 50 Index Long Futures Contracts Expiring December 2018 ....................................... (142) (0.02)
352
3,515.37
2 of Hang Seng Index Long Futures Contracts Expiring October 2018 ........................................... 5 0.00
5,715
732.63
39 of S&P TSX 60 Index Futures Long Futures Contracts Expiring December 2018 ....................................... 20 0.00
2,967
14.84
20 of Topix Index Futures Long Futures Contracts Expiring December 2018 ....................................... 233 0.04
(27,160)
(14.84)
183 of Topix Index Futures Short Futures Contracts Expiring December 2018 ....................................... (2,122) (0.23)
1,432
6,227.99
23 of CAC40 10 Euro Long Futures Contracts Expiring October 2018 ........................................... 34 0.00
781
4,460.27
7 of SPI 200 Index Futures Long Futures Contracts Expiring December 2018 ....................................... 4 0.00
331
183.65
18 of OMX 30 Index Futures Long Futures Contracts Expiring October 2018 ........................................... 5 0.00
Unrealised gain on open futures contracts ............................................................................. 1,338 0.15 Unrealised loss on open futures contracts .............................................................................. (3,587) (0.40) Net unrealised gain (loss) on open futures contracts ........................................................ (2,249) (0.25)
Russell Investment Company plc Russell Investments World Equity Fund II Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments World Equity Fund II 315
Open Forward Foreign Currency Exchange Contracts (0.17%)
Unrealised gain on open forward foreign currency exchange contracts ................................ 4,831 0.54 Unrealised loss on open forward foreign currency exchange contracts ................................. (3,304) (0.37) Net unrealised gain (loss) on open forward foreign currency exchange contracts ......... 1,527 0.17 Total Financial Derivative Instruments ............................................................................. (722) (0.08)
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (98.48%) .......................................................................................... 881,507 98.48
Total Financial Liabilities at Fair Value through Profit or Loss ((0.77)%) ......................................................................................... (6,891) (0.77)
Net Financial Assets at Fair Value through Profit or Loss (97.71%) .......................................................................................... 874,616 97.71
Other Net Assets (2.29%) .............................................................. 20,548 2.29 Net Assets ........................................................................................ 895,164 100.00
Abbreviation used: ADR - American Depository Receipt GDR - Global Depository Receipt NVDR - Non-Voting Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing .......................................................... 92.42 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) ............................... 0.15 Investment funds (UCITS) ............................................................................................................................ 3.23 Exchange traded financial derivative instruments ........................................................................................ 0.15 Over the counter financial derivative instruments ........................................................................................ 0.53 Other assets ................................................................................................................................................... 3.52
100.00
The broker for open futures contracts is Morgan Stanley. The counterparties for the open forward foreign currency exchange contracts are: Bank of Montreal HSBC BNP Paribas Royal Bank of Canada Brown Brothers Harriman State Street Bank and Trust Company Citibank Westpac Commonwealth Bank of Australia
Russell Investment Company plc Russell Investments World Equity Fund II Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 322 Russell Investments World Equity Fund II
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 1,338 - - 1,338 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 4,831 - 4,831
Total assets ......................................................................... 846,195 35,027 285 881,507 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (3,587) - - (3,587) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (3,304) - (3,304)
Total liabilities ................................................................... (3,587) (3,304) - (6,891) As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 1,715 - - 1,715 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 10,326 - 10,326
Total assets ......................................................................... 846,772 59,049 12 905,833 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (3,073) - - (3,073) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (3,441) - (3,441)
Total liabilities ................................................................... (3,073) (3,441) - (6,514)
Russell Investment Company plc Russell Investments World Equity Fund II Statement of Changes in Composition of Portfolio Listed below are 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Russell Investments World Equity Fund II 323
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 243,796 Class R Roll-Up Shares (261,650)
Alphabet Inc (Class C) 5,495 Facebook Inc (7,035) Baker Hughes a GE Co 4,537 Alphabet Inc (Class C) (4,964) Wells Fargo & Co 4,533 Schlumberger Ltd (4,244) Suncor Energy Inc 4,114 Intel Corp (3,805) Technip FMC Plc 3,496 Sony Corp (3,423) Microsoft Corp 3,265 Johnson & Johnson (3,046) Royal Dutch Shell Plc 3,197 Royal Dutch Shell Plc (B Shares) (2,996) Procter & Gamble Co 2,886 Alphabet Inc (2,936) Yandex NV 2,841 Oracle Corp (2,431) Tencent Holdings Ltd 2,735 Swedish Match AB (2,358) Sony Corp 2,399 Petroleo Brasileiro SA ADR (2,333) ConocoPhillips 2,321 Honda Motor Co Ltd (2,273) Medtronic Plc 2,282 Enel SpA (2,251) Swedish Match AB 2,149 Halliburton Co (2,240) Exelon Corp 2,091 Deutsche Lufthansa AG (2,233) Allstate Corp 2,069 Dollar Tree Inc (2,206) Alibaba Group Holding Ltd ADR 1,888 Express Scripts Holding Co (2,112) Cigna Corp 1,851 Fiat Chrysler Automobiles NV (2,105) Swiss Re AG 1,801 Citigroup Inc (2,063)
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 324 Russell Investments Unconstrained Bond Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 645,870 604,225
Cash at bank (Note 2) .................................................................................................. 22,196 17,138 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 7,290 14,937
Debtors:
Receivable for investments sold .............................................................................. 26,239 25,698 Receivable on fund shares issued ............................................................................ 4 153 Interest receivable .................................................................................................... 4,051 4,151
705,650 666,302 Liabilities Financial liabilities at fair value through profit or loss ................................................ (12,591) (16,725)
Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) .................................................................................................................... (4,154) (5,075) Payable for investments purchased .......................................................................... (54,991) (70,702) Payable on fund shares redeemed ............................................................................ (91) (592) Distributions payable on income share classes ........................................................ (401) (349) Management fees payable ........................................................................................ (432) (377) Depositary fees payable ........................................................................................... (98) (10) Sub-custodian fees payable ...................................................................................... (10) (37) Administration fees payable .................................................................................... (31) (17) Audit fees payable ................................................................................................... (15) (30) Other fees payable ................................................................................................... (2) (25)
(72,816) (93,939)
Net assets attributable to redeemable participating shareholders ........................ 632,834 572,363
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 325
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Interest income ........................................................................................................ 12,646 8,389
Net gain (loss) on investment activities ....................................................................... (42,427) 25,337
Total investment income (expense) .......................................................................... (29,781) 33,726
Total operating expenses ........................................................................................... (2,882) (1,939)
Net income (expense) ................................................................................................. (32,663) 31,787 Finance costs
Distributions (Note 7) .............................................................................................. (13,189) (8,785) Profit (loss) for the financial period before taxation .............................................. (45,852) 23,002
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (45,857) 22,988 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 326 Russell Investments Unconstrained Bond Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (45,857) 22,988
Share transactions
Reinvestment of deemed distributions on accumulation shares (Note 7) ................ 12,326 8,556 Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ 94,002 163,593
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 60,471 195,137
Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................. 572,363 294,654
End of financial period ............................................................................................ 632,834 489,791
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 327
Principal Amount
Fair Value USD ‘000
Fund %
Transferable Securities (73.94%) Long Term Bonds and Notes (65.06%) Australia (1.01%)
USD 600,000 5.125% due 15/03/21 ....... 616 0.10 925,000 5.500% due 15/02/22 ....... 962 0.15 3,270,000 5.000% due 01/04/23 ....... 3,362 0.53 Bellemeade RE Ltd 400,000 6.466% due 25/04/28 ....... 410 0.07 150,000 4.866% due 25/08/28 ....... 156 0.02
Oaktown RE Ltd 150,000 6.216% due 25/04/27 ....... 155 0.02
Radnor RE Ltd 290,000 4.916% due 25/03/28 ....... 294 0.05
Vale SA EUR 750,000 3.750% due 10/01/23 ....... 961 0.15
6,916 1.09 Canada (1.11%)
BC ULC USD 400,000 4.625% due 15/01/22 ....... 402 0.06 First Quantum Minerals Ltd
200,000 7.250% due 01/04/23 ....... 192 0.03 Open Text Corp
300,000 5.625% due 15/01/23 ....... 306 0.05 Quebecor Media Inc
550,000 5.750% due 15/01/23 ....... 569 0.09
Reliance Intermediate Holdings
200,000 6.500% due 01/04/23 ....... 208 0.03 Royal Bank of Canada
2,515,000 2.729% due 30/04/21 ....... 2,525 0.40 Toronto-Dominion Bank
2,100,000 2.700% due 01/05/20 ....... 2,082 0.33 Videotron Ltd
750,000 5.000% due 15/07/22 ....... 773 0.12 7,057 1.11
Principal Amount
Fair Value USD ‘000
Fund %
Cayman Islands (0.49%)
Avolon Holdings Funding Ltd
660,000 5.125% due 01/10/23 ...... 669 0.11 Phoenix Group Holdings GBP 1,400,000 4.125% due 20/07/22 ...... 1,843 0.29 Seagate HDD Cayman USD 600,000 4.750% due 01/06/23 ...... 598 0.09
3,110 0.49 Curacao (0.10%)
Teva Pharmaceutical Finance Co BV
700,000 2.950% due 18/12/22 ...... 651 0.10 Denmark (0.24%) Danske Bank A/S 750,000 2.831% due 02/03/20 ...... 749 0.12 750,000 2.831% due 02/03/20 ...... 749 0.12 1,498 0.24 Finland (0.37%)
Nokia OYJ 750,000 3.375% due 12/06/22 ...... 738 0.12
Stora Enso OYJ EUR 1,300,000 2.125% due 16/06/23 ...... 1,601 0.25
2,339 0.37 France (1.25%)
Bureau Veritas SA 600,000 1.250% due 07/09/23 ...... 695 0.11
Credit Agricole SA USD 1,090,000 3.297% due 10/06/20 ...... 1,103 0.18
Crown European Holdings SA
EUR 1,600,000 2.250% due 01/02/23 ...... 1,900 0.30 100,000 3.625% due 15/06/23 ...... 121 0.02 700,000 3.625% due 15/06/23 ...... 845 0.13
Loxam SAS 791,000 3.500% due 15/04/22 ...... 950 0.15
Nexans SA 400,000 3.750% due 08/08/23 ...... 482 0.08
Rexel SA 1,100,000 3.500% due 15/06/23 ...... 1,326 0.21 Faurecia SA
Ubisoft Entertainment SA 400,000 1.289% due 30/01/23 ...... 464 0.07 7,886 1.25 Germany (0.29%)
ADLER Real Estate AG 600,000 1.875% due 27/04/23 ...... 684 0.11
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 328 Russell Investments Unconstrained Bond Fund
FCA Bank SpA GBP 341,000 1.625% due 29/09/21 ....... 436 0.07 Intesa Sanpaolo SpA USD 900,000 3.375% due 12/01/23 ....... 834 0.13 Telecom Italia SpA/Milano EUR 400,000 1.125% due 26/03/22 ....... 447 0.07
UniCredit SpA 350,000 6.125% due 19/04/21 ....... 448 0.07
USD 900,000 3.750% due 12/04/22 ....... 864 0.14
Unione di Banche Italiane SpA
EUR 1,182,000 1.750% due 12/04/23 ....... 1,297 0.20 Wind Tre SpA
451,000 2.625% due 20/01/23 ....... 493 0.08 4,819 0.76 Japan (0.18%)
SoftBank Group Corp 950,000 4.000% due 20/04/23 ....... 1,163 0.18 Luxembourg (0.67%)
Allergan Funding SCS USD 1,000,000 3.450% due 15/03/22 ....... 994 0.16 Eurofins Scientific SE EUR 700,000 3.375% due 30/01/23 ....... 870 0.14
Principal Amount
Fair Value USD ‘000
Fund %
Gazprom OAO Via Gaz Capital SA
GBP 200,000 5.338% due 25/09/20 ...... 273 0.04 USD 300,000 4.950% due 19/07/22 ...... 302 0.05 Nvent Finance Sarl
775,000 3.950% due 15/04/23 ...... 762 0.12
Sberbank of Russia Via SB Capital SA
200,000 5.717% due 16/06/21 ...... 204 0.03 200,000 5.125% due 29/10/22 ...... 198 0.03
Severstal OAO Via Steel Capital SA
400,000 5.900% due 17/10/22 ...... 410 0.07 200,000 5.900% due 17/10/22 ...... 205 0.03 4,218 0.67 Mexico (0.58%)
America Movil SAB de CV EUR 200,000 Zero Coupon due 28/05/20 229 0.04 Cemex SAB de CV
850,000 4.375% due 05/03/23 ...... 1,025 0.16 Mexichem SAB de CV
USD 450,000 4.875% due 19/09/22 ...... 460 0.07 200,000 4.875% due 19/09/22 ...... 205 0.03
Petroleos Mexicanos EUR 1,500,000 2.500% due 21/08/21 ...... 1,779 0.28
3,698 0.58 Netherlands (1.54%)
Bharti Airtel International Netherlands BV
600,000 3.375% due 20/05/21 ...... 736 0.12 Cooperatieve Rabobank UA USD 2,000,000 2.765% due 26/04/21 ...... 2,005 0.32
Marfrig Holdings Europe BV
200,000 8.000% due 08/06/23 ...... 201 0.03
NXP BV / NXP Funding LLC
2,500,000 4.625% due 15/06/22 ...... 2,528 0.40 400,000 4.625% due 01/06/23 ...... 407 0.06
OI European Group BV 2,075,000 4.000% due 15/03/23 ...... 1,976 0.31
Petrobras Global Finance BV
150,000 6.125% due 17/01/22 ...... 155 0.02 323,000 6.125% due 17/01/22 ...... 334 0.05
Shell International Finance BV
301,000 1.875% due 10/05/21 ...... 291 0.05 VEON Holdings BV
700,000 5.950% due 13/02/23 ...... 708 0.11 VTR Finance BV
400,000 6.875% due 15/01/24 ...... 409 0.07 9,750 1.54
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 329
Principal Amount
Fair Value USD ‘000
Fund %
Norway (0.20%) Aker BP ASA 1,025,000 6.000% due 01/07/22 ....... 1,061 0.17 225,000 6.000% due 01/07/22 ....... 233 0.03 1,294 0.20 Spain (0.06%)
Cellnex Telecom SA EUR 300,000 2.375% due 16/01/24 ....... 352 0.06
Sweden (0.72%)
Skandinaviska Enskilda Banken AB
USD 3,500,000 2.742% due 17/05/21 ....... 3,505 0.55 Svenska Handelsbanken AB
350,000 2.782% due 24/05/21 ....... 351 0.06 Volvo Car AB EUR 550,000 3.250% due 18/05/21 ....... 685 0.11
4,541 0.72 Turkey (0.06%)
Akbank Turk AS USD 200,000 5.000% due 24/10/22 ....... 183 0.03 Arcelik AS
200,000 5.000% due 03/04/23 ....... 182 0.03 365 0.06 United Kingdom (1.38%)
Anglo American Capital Plc 250,000 4.125% due 27/09/22 ....... 250 0.04
Barclays Bank Plc 600,000 5.140% due 14/10/20 ....... 615 0.10
HSBC Holdings Plc 850,000 2.922% due 18/05/21 ....... 852 0.13
Inmarsat Finance Plc 100,000 4.875% due 15/05/22 ....... 100 0.02
International Game Technology Plc
625,000 6.250% due 15/02/22 ....... 650 0.10 EUR 1,050,000 4.750% due 15/02/23 ....... 1,319 0.21
Jaguar Land Rover Automotive Plc
GBP 1,000,000 3.875% due 01/03/23 ....... 1,246 0.20
Lloyds Bank Corporate Markets Plc
USD 2,500,000 2.634% due 13/03/20 ....... 2,500 0.40
Reckitt Benckiser Treasury Services Plc
880,000 2.926% due 24/06/22 ....... 880 0.14 Tesco Plc GBP 64,000 6.125% due 24/02/22 ....... 94 0.01 Virgin Media Finance Plc USD 200,000 6.375% due 15/04/23 ....... 206 0.03
8,712 1.38
Principal Amount
Fair Value USD ‘000
Fund %
United States (52.03%) Acadia Healthcare Co Inc
1,250,000 5.125% due 01/07/22 ...... 1,253 0.20 ADT Corp 2,000,000 6.250% due 15/10/21 ...... 2,108 0.33 800,000 3.500% due 15/07/22 ...... 760 0.12 1,800,000 4.125% due 15/06/23 ...... 1,726 0.27
AECOM Global II LLC 1,013,000 5.000% due 01/04/22 ...... 1,029 0.16
Air Lease Corp 465,000 3.875% due 03/07/23 ...... 461 0.07 Alliance Data Systems Corp 100,000 5.875% due 01/11/21 ...... 102 0.02 200,000 5.375% due 01/08/22 ...... 202 0.03 Alternative Loan Trust 203,434 2.495% due 20/11/35 ...... 199 0.03 213,853 2.556% due 25/02/37 ...... 120 0.02 346,728 2.375% due 20/03/46 ...... 316 0.05 199,298 2.406% due 25/08/46 ...... 175 0.03 292,490 2.406% due 25/08/46 ...... 247 0.04 133,809 2.406% due 25/08/46 ...... 107 0.02 138,422 2.426% due 25/04/47 ...... 124 0.02
Altice US Finance I Corp 900,000 5.375% due 15/07/23 ...... 912 0.14
AMC Entertainment Holdings Inc
1,200,000 5.875% due 15/02/22 ...... 1,214 0.19 AMC Networks Inc
2,325,000 4.750% due 15/12/22 ...... 2,331 0.37
American Express Credit Account Master Trust
2,000,000 1.930% due 15/09/22 ...... 1,973 0.31
American Express Credit Corp
1,750,000 2.909% due 30/10/19 ...... 1,758 0.28
American Honda Finance Corp
2,522,000 2.937% due 09/09/21 ...... 2,545 0.40 American Tower Corp
200,000 3.000% due 15/06/23 ...... 193 0.03 Amsted Industries Inc
1,125,000 5.000% due 15/03/22 ...... 1,131 0.18 Anixter Inc
650,000 5.125% due 01/10/21 ...... 665 0.10 Antero Resources Corp 1,750,000 5.125% due 01/12/22 ...... 1,782 0.28 1,500,000 5.625% due 01/06/23 ...... 1,539 0.24
Apple Inc 500,000 3.440% due 23/02/21 ...... 513 0.08
Arconic Inc 1,530,000 5.400% due 15/04/21 ...... 1,580 0.25
Ares Capital Corp 1,150,000 3.500% due 10/02/23 ...... 1,100 0.17
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 330 Russell Investments Unconstrained Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
Ashland LLC 2,175,000 4.750% due 15/08/22 ....... 2,203 0.35
B&G Foods Inc 1,000,000 4.625% due 01/06/21 ....... 1,003 0.16
BA Credit Card Trust 1,500,000 1.950% due 15/08/22 ....... 1,479 0.23 Ball Corp 500,000 5.000% due 15/03/22 ....... 518 0.08 2,100,000 4.000% due 15/11/23 ....... 2,061 0.33
Banc of America Commercial Mortgage Trust
9,574 6.790% due 10/02/51 ....... 10 0.00 Bank of America Corp
600,000 3.007% due 21/07/21 ....... 604 0.10
Bayview Financial Mortgage Pass-Through Trust
120,000 6.028% due 28/11/36 ....... 118 0.02 Bear Stearns ALT-A Trust 125,910 4.370% due 25/09/35 ....... 119 0.02 406,876 2.536% due 25/11/36 ....... 422 0.07
Bear Stearns Commercial Mortgage Securities Trust
149,000 5.731% due 11/09/42 ....... 134 0.02 108,000 5.566% due 12/01/45 ....... 99 0.02 BMW US Capital LLC 1,500,000 2.747% due 12/04/21 ....... 1,506 0.24 500,000 2.819% due 13/08/21 ....... 502 0.08
Capital One Multi-Asset Execution Trust
500,000 2.538% due 18/01/22 ....... 501 0.08 1,540,000 1.340% due 15/04/22 ....... 1,525 0.24
Caterpillar Financial Services Corp
645,000 1.931% due 01/10/21 ....... 620 0.10 CCO Holdings LLC 1,600,000 5.250% due 15/03/21 ....... 1,611 0.25 1,094,000 4.000% due 01/03/23 ....... 1,050 0.17
Celanese US Holdings LLC EUR 725,000 1.125% due 26/09/23 ....... 844 0.13
Centene Corp USD 1,950,000 5.625% due 15/02/21 ....... 1,989 0.31
475,000 4.750% due 15/05/22 ....... 483 0.08 CenturyLink Inc 300,000 6.450% due 15/06/21 ....... 312 0.05 700,000 5.800% due 15/03/22 ....... 716 0.11
Charter Communications Operating LLC
USD 315,000 2.851% due 03/03/22 ....... 319 0.05 2,250,000 4.464% due 23/07/22 ....... 2,290 0.36
Cinemark USA Inc 550,000 5.125% due 15/12/22 ....... 556 0.09 CIT Group Inc 400,000 4.125% due 09/03/21 ....... 401 0.06
Principal Amount
Fair Value USD ‘000
Fund %
1,475,000 5.000% due 15/08/22 ...... 1,508 0.24 2,220,000 4.750% due 16/02/24 ...... 2,228 0.35
Citibank Credit Card Issuance Trust
545,000 2.150% due 15/07/21 ...... 542 0.09 1,600,000 1.800% due 20/09/21 ...... 1,584 0.25 460,000 1.920% due 07/04/22 ...... 453 0.07
Citibank NA 1,000,000 2.917% due 23/07/21 ...... 1,006 0.16
Citigroup Commercial Mortgage Trust
173,000 5.091% due 10/05/47 ...... 159 0.03
Citigroup Mortgage Loan Trust
193,265 3.842% due 25/04/37 ...... 193 0.03
Citigroup Mortgage Loan Trust Inc
549,228 2.566% due 25/03/37 ...... 477 0.08 Clearway Energy Inc
550,000 3.250% due 01/06/20 ...... 551 0.09 CNH Industrial Capital LLC
1,250,000 3.875% due 15/10/21 ...... 1,250 0.20 CNO Financial Group Inc
1,175,000 4.500% due 30/05/20 ...... 1,193 0.19
COBALT CMBS Commercial Mortgage Trust
135,563 6.015% due 15/05/46 ...... 138 0.02 COMM Mortgage Trust 266,000 4.399% due 10/07/45 ...... 230 0.04 100,000 4.914% due 15/10/45 ...... 90 0.01 CoreCivic Inc 500,000 4.125% due 01/04/20 ...... 501 0.08 2,275,000 5.000% due 15/10/22 ...... 2,258 0.36 25,000 4.625% due 01/05/23 ...... 24 0.00
Credit Suisse Commercial Mortgage Trust
105,254 6.185% due 15/09/39 ...... 107 0.02 667,000 6.170% due 15/02/41 ...... 535 0.08
CSAIL Commercial Mortgage Trust
433,000 3.940% due 15/04/50 ...... 390 0.06 DAE Funding LLC
1,500,000 4.500% due 01/08/22 ...... 1,466 0.23 DaVita Inc
3,000,000 5.750% due 15/08/22 ...... 3,066 0.48 DBUBS Mortgage Trust
104,583 5.718% due 10/07/44 ...... 97 0.02 Dell International LLC
150,000 5.450% due 15/06/23 ...... 158 0.02
Deutsche Alt-A Securities Mortgage Loan Trust
745,048 2.406% due 25/12/36 ...... 445 0.07 DISH DBS Corp
275,000 5.125% due 01/05/20 ...... 278 0.04
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 331
Principal Amount
Fair Value USD ‘000
Fund %
Domtar Corp 850,000 4.400% due 01/04/22 ....... 860 0.14
Drawbridge Special Opportunities Fund LP
250,000 5.000% due 01/08/21 ....... 251 0.04 Edgewell Personal Care Co
1,200,000 4.700% due 19/05/21 ....... 1,203 0.19 Energy Transfer Equity LP
1,925,000 4.250% due 15/03/23 ....... 1,918 0.30 Envision Healthcare Corp
1,000,000 5.625% due 15/07/22 ....... 1,029 0.16 Equinix Inc
2,350,000 5.375% due 01/01/22 ....... 2,432 0.38 Exxon Mobil Corp
1,000,000 1.912% due 06/03/20 ....... 988 0.16
Fannie Mae Connecticut Avenue Securities
329,691 6.516% due 25/02/25 ....... 364 0.06 335,462 7.216% due 25/07/25 ....... 383 0.06 478,367 7.766% due 25/04/28 ....... 544 0.09 458,375 7.916% due 25/04/28 ....... 533 0.08 399,102 14.466% due 25/09/28 ..... 588 0.09 394,773 13.966% due 25/10/28 ..... 563 0.09 394,104 14.966% due 25/10/28 ..... 568 0.09 29,931 11.244% due 25/01/29 ..... 40 0.01 645,000 5.766% due 25/07/29 ....... 705 0.11 606,000 7.966% due 25/07/29 ....... 736 0.12 215,000 5.866% due 25/09/29 ....... 237 0.04 750,000 7.716% due 25/09/29 ....... 881 0.14 714,000 7.066% due 25/10/29 ....... 825 0.13 348,000 5.816% due 25/01/30 ....... 369 0.06 370,000 4.866% due 25/02/30 ....... 388 0.06 210,000 5.016% due 25/02/30 ....... 220 0.03 882,000 5.766% due 25/07/30 ....... 907 0.14 600,000 4.766% due 25/12/30 ....... 615 0.10 920,000 4.566% due 25/01/31 ....... 936 0.15 Fannie Mae Pool 2,000,000 2.500% due 15/10/46 ....... 1,851 0.29 27,000,000 3.000% due 15/10/46 ....... 25,835 4.08 7,000,000 3.500% due 15/10/46 ....... 6,889 1.09 4,000,000 4.000% due 15/10/46 ....... 4,039 0.64 (3,000,000) 4.500% due 11/10/48 ....... (3,095) (0.49) 1,673,662 5.500% due 25/08/33 ....... 343 0.05 656,295 3.500% due 25/02/39 ....... 66 0.01 442,769 3.884% due 25/04/39 ....... 30 0.00 1,170,468 3.000% due 25/06/41 ....... 136 0.02 4,052,357 3.704% due 25/06/41 ....... 502 0.08 Fannie Mae REMICS 342,407 3.834% due 25/09/42 ....... 58 0.01 2,464,368 4.984% due 25/10/42 ....... 469 0.07 532,000 6.500% due 25/07/43 ....... 120 0.02
Principal Amount
Fair Value USD ‘000
Fund %
2,169,886 4.034% due 25/09/45 ...... 269 0.04 1,442,133 3.500% due 25/02/46 ...... 254 0.04 2,138,932 3.884% due 25/09/46 ...... 265 0.04 1,682,146 3.884% due 25/09/46 ...... 214 0.03 1,858,180 3.500% due 25/10/46 ...... 307 0.05 3,261,976 3.884% due 25/02/47 ...... 422 0.07 4,579,660 4.000% due 25/05/47 ...... 915 0.14 652,565 3.500% due 25/10/47 ...... 131 0.02 715,312 4.000% due 25/10/47 ...... 146 0.02 3,697,025 4.000% due 25/01/48 ...... 683 0.11 1,895,812 4.004% due 25/01/48 ...... 274 0.04 609,338 5.000% due 25/02/48 ...... 128 0.02 2,742,539 5.500% due 25/08/48 ...... 574 0.09 First Data Corp 500,000 5.375% due 15/08/23 ...... 509 0.08 575,000 5.000% due 15/01/24 ...... 581 0.09
Ford Credit Auto Owner Trust
503,426 2.228% due 15/05/20 ...... 503 0.08 273,286 1.800% due 15/09/20 ...... 273 0.04 Freddie Mac REMICS 498,490 3.892% due 15/08/38 ...... 30 0.00 4,584,740 4.500% due 15/11/39 ...... 534 0.08 1,335,662 4.342% due 15/10/40 ...... 198 0.03 1,558,683 3.792% due 15/01/42 ...... 199 0.03 617,530 4.000% due 15/01/42 ...... 111 0.02 544,136 4.500% due 15/07/42 ...... 115 0.02 3,110,613 4.000% due 15/10/42 ...... 389 0.06 3,668,670 4.000% due 15/02/43 ...... 629 0.10 1,972,374 4.000% due 15/06/43 ...... 345 0.05 532,087 4.000% due 15/09/44 ...... 125 0.02 1,945,934 7.000% due 15/03/45 ...... 507 0.08 1,777,340 4.000% due 15/04/45 ...... 359 0.06 631,372 3.500% due 15/08/45 ...... 112 0.02 2,654,297 3.500% due 15/11/45 ...... 410 0.06 473,439 4.000% due 15/11/45 ...... 109 0.02 619,001 4.000% due 15/12/45 ...... 106 0.02 565,306 3.500% due 15/04/46 ...... 96 0.02 1,030,620 4.000% due 15/04/46 ...... 208 0.03 1,828,587 3.500% due 15/07/46 ...... 295 0.05 1,420,622 4.000% due 15/03/47 ...... 283 0.04 629,753 4.042% due 15/11/47 ...... 104 0.02 844,956 5.000% due 15/02/48 ...... 177 0.03
Freddie Mac Structured Agency Credit Risk Debt Notes
326,834 6.366% due 25/01/25 ...... 351 0.06 278,855 9.766% due 25/12/27 ...... 346 0.05 1,207,473 5.066% due 25/04/28 ...... 1,251 0.20 655,000 7.766% due 25/07/28 ...... 793 0.13 666,000 8.566% due 25/09/28 ...... 820 0.13
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 332 Russell Investments Unconstrained Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
166,511 4.416% due 25/10/28 ....... 168 0.03 438,000 6.866% due 25/10/28 ....... 505 0.08 398,772 12.716% due 25/10/28 ..... 535 0.08 669,400 7.366% due 25/11/28 ....... 795 0.13 598,000 6.066% due 25/03/29 ....... 679 0.11 639,000 7.166% due 25/07/29 ....... 739 0.12 250,000 5.766% due 25/08/29 ....... 275 0.04 519,000 7.366% due 25/10/29 ....... 610 0.10 270,000 6.666% due 25/03/30 ....... 305 0.05 235,000 5.366% due 25/07/30 ....... 231 0.04
Fresenius US Finance II Inc 1,900,000 4.500% due 15/01/23 ....... 1,931 0.30
General Mills Inc 2,473,000 2.879% due 16/04/21 ....... 2,485 0.39 Ginnie Mae II Pool 2,000,000 4.000% due 18/10/48 ....... 2,034 0.32 3,000,000 4.500% due 18/10/48 ....... 3,101 0.49 GLP Capital LP 1,000,000 4.875% due 01/11/20 ....... 1,021 0.16 1,100,000 4.375% due 15/04/21 ....... 1,111 0.18
Government National Mortgage Association
1,136,064 5.500% due 16/10/37 ....... 61 0.01 922,846 4.385% due 20/12/38 ....... 40 0.01 1,862,486 5.500% due 20/05/39 ....... 233 0.04 1,854,312 3.500% due 20/08/39 ....... 250 0.04 471,765 3.500% due 20/10/39 ....... 64 0.01 286,345 5.000% due 20/10/39 ....... 69 0.01 2,532,294 4.522% due 16/01/40 ....... 305 0.05 4,027,441 5.000% due 20/01/40 ....... 907 0.14 383,123 6.000% due 20/01/40 ....... 74 0.01 1,019,213 5.000% due 20/02/40 ....... 179 0.03 1,232,105 4.500% due 20/03/40 ....... 275 0.04 476,168 4.592% due 16/07/40 ....... 44 0.01 904,556 4.000% due 20/11/40 ....... 140 0.02 553,803 4.000% due 20/05/41 ....... 97 0.02 725,907 4.532% due 16/11/41 ....... 127 0.02 446,058 3.500% due 16/02/42 ....... 67 0.01 466,208 3.500% due 20/04/42 ....... 45 0.01 966,685 4.500% due 20/05/42 ....... 199 0.03 923,300 3.500% due 16/08/42 ....... 191 0.03 189,492 4.500% due 16/11/42 ....... 47 0.01 375,231 3.500% due 20/11/42 ....... 78 0.01 1,913,647 3.000% due 20/01/43 ....... 211 0.03 909,885 3.500% due 20/01/43 ....... 166 0.03 1,924,145 4.500% due 20/03/43 ....... 428 0.07 1,198,904 4.000% due 16/04/43 ....... 242 0.04 1,176,682 3.885% due 20/06/43 ....... 208 0.03 28,131 4.500% due 20/08/43 ....... 4 0.00 744,892 4.500% due 16/10/43 ....... 130 0.02 2,109,709 4.500% due 16/12/43 ....... 478 0.08
Principal Amount
Fair Value USD ‘000
Fund %
1,015,171 4.535% due 20/12/43 ...... 164 0.03 976,957 3.500% due 20/01/44 ...... 122 0.02 311,189 5.000% due 20/01/44 ...... 68 0.01 2,024,863 3.500% due 20/02/44 ...... 217 0.03 454,527 3.935% due 20/04/44 ...... 65 0.01 2,678,454 4.000% due 20/07/44 ...... 468 0.07 712,310 4.000% due 20/08/44 ...... 136 0.02 1,302,022 4.000% due 20/09/44 ...... 166 0.03 4,433,284 4.000% due 20/10/44 ...... 807 0.13 1,280,007 5.500% due 16/12/44 ...... 311 0.05 1,013,302 5.000% due 20/12/44 ...... 248 0.04 464,073 3.500% due 20/01/45 ...... 85 0.01 1,531,513 3.500% due 20/01/45 ...... 254 0.04 682,771 4.000% due 20/02/45 ...... 139 0.02 500,511 5.000% due 16/03/45 ...... 108 0.02 388,550 3.500% due 20/03/45 ...... 60 0.01 534,013 4.000% due 20/03/45 ...... 99 0.02 2,981,925 4.500% due 20/03/45 ...... 763 0.12 980,125 5.000% due 20/03/45 ...... 228 0.04 575,789 4.000% due 20/05/45 ...... 108 0.02 384,728 4.500% due 20/06/45 ...... 92 0.01 1,343,904 4.500% due 20/06/45 ...... 182 0.03 494,405 3.500% due 20/08/45 ...... 88 0.01 654,273 4.000% due 20/09/45 ...... 113 0.02 550,885 3.935% due 20/10/45 ...... 82 0.01 502,584 4.000% due 20/10/45 ...... 105 0.02 306,863 4.500% due 16/11/45 ...... 70 0.01 1,267,708 4.000% due 20/11/45 ...... 235 0.04 742,242 3.500% due 20/01/46 ...... 128 0.02 1,069,150 4.000% due 20/01/46 ...... 172 0.03 691,934 4.500% due 20/01/46 ...... 115 0.02 765,793 4.000% due 20/02/46 ...... 148 0.02 1,469,336 4.500% due 20/02/46 ...... 309 0.05 2,659,488 5.000% due 20/02/46 ...... 594 0.09 630,111 3.500% due 16/04/46 ...... 127 0.02 635,641 3.500% due 20/08/46 ...... 84 0.01 338,925 4.000% due 20/10/46 ...... 64 0.01 818,132 3.500% due 20/11/46 ...... 115 0.02 1,208,667 5.000% due 20/11/46 ...... 252 0.04 1,733,564 3.500% due 20/01/47 ...... 268 0.04 2,499,062 4.000% due 20/01/47 ...... 496 0.08 1,476,707 5.000% due 20/01/47 ...... 338 0.05 691,159 6.500% due 20/02/47 ...... 165 0.03 292,114 5.000% due 16/03/47 ...... 67 0.01 1,431,743 3.500% due 20/03/47 ...... 267 0.04 1,292,233 3.500% due 20/07/47 ...... 215 0.03 785,637 5.000% due 16/08/47 ...... 205 0.03 860,621 3.500% due 20/09/47 ...... 146 0.02 477,638 5.000% due 20/10/47 ...... 111 0.02 1,681,389 3.500% due 20/11/47 ...... 330 0.05 5,078,839 1.085% due 20/02/48 ...... 152 0.02
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 333
Principal Amount
Fair Value USD ‘000
Fund %
1,700,901 4.000% due 20/02/48 ....... 353 0.06 1,416,629 4.035% due 20/06/48 ....... 188 0.03 1,044,826 5.000% due 20/06/48 ....... 226 0.04 2,626,549 4.085% due 20/07/48 ....... 368 0.06 1,783,716 4.085% due 20/08/48 ....... 266 0.04 3,174,000 4.135% due 20/09/48 ....... 424 0.07 1,651,111 1.256% due 20/03/61 ....... 75 0.01 991,565 1.762% due 20/07/63 ....... 45 0.01 2,287,800 1.480% due 20/09/63 ....... 97 0.02 2,516,238 1.471% due 20/02/64 ....... 135 0.02 1,977,362 1.439% due 20/03/64 ....... 89 0.01 3,392,956 1.484% due 20/03/64 ....... 188 0.03 1,900,904 1.447% due 20/04/64 ....... 140 0.02 2,251,495 1.469% due 20/06/64 ....... 162 0.03 1,047,717 1.580% due 20/07/64 ....... 51 0.01 1,596,305 1.550% due 20/11/64 ....... 132 0.02 3,043,758 1.069% due 20/12/64 ....... 243 0.04 2,010,785 1.201% due 20/01/65 ....... 178 0.03 881,658 1.560% due 20/01/65 ....... 61 0.01 2,496,161 1.640% due 20/07/65 ....... 201 0.03 975,730 1.901% due 20/07/65 ....... 83 0.01 723,260 2.366% due 20/07/65 ....... 69 0.01 788,945 2.055% due 20/10/65 ....... 67 0.01 1,184,211 1.153% due 20/02/66 ....... 82 0.01 1,028,364 2.057% due 20/02/66 ....... 89 0.01 2,764,091 1.285% due 20/04/66 ....... 207 0.03 986,466 1.419% due 20/04/66 ....... 57 0.01 1,188,082 1.831% due 20/04/66 ....... 127 0.02 1,465,693 1.669% due 20/06/66 ....... 101 0.02 682,583 2.132% due 20/06/66 ....... 77 0.01 637,003 2.206% due 20/06/66 ....... 70 0.01 1,610,486 2.342% due 20/06/66 ....... 178 0.03 1,172,092 2.599% due 20/06/66 ....... 150 0.02 896,144 1.957% due 20/07/66 ....... 101 0.02 644,764 2.324% due 20/07/66 ....... 71 0.01 1,563,073 1.641% due 20/08/66 ....... 107 0.02 2,751,218 2.599% due 20/08/66 ....... 344 0.05 2,241,649 1.594% due 20/09/66 ....... 144 0.02 589,507 1.686% due 20/10/66 ....... 49 0.01 2,620,600 1.852% due 20/10/66 ....... 249 0.04 1,438,970 2.003% due 20/10/66 ....... 170 0.03 837,532 1.829% due 20/11/66 ....... 102 0.02 3,115,899 1.450% due 20/12/66 ....... 339 0.05 2,224,826 2.608% due 20/12/66 ....... 292 0.05 1,622,098 1.550% due 20/01/67 ....... 122 0.02 677,782 2.376% due 20/01/67 ....... 98 0.02 1,692,345 2.384% due 20/01/67 ....... 216 0.03 2,950,216 2.157% due 20/02/67 ....... 377 0.06 1,319,860 2.309% due 20/02/67 ....... 155 0.02 2,987,348 2.327% due 20/02/67 ....... 392 0.06 1,721,633 2.139% due 20/03/67 ....... 198 0.03
Principal Amount
Fair Value USD ‘000
Fund %
3,266,054 1.643% due 20/04/67 ...... 318 0.05 1,558,405 1.706% due 20/04/67 ...... 160 0.03 2,657,782 2.009% due 20/05/67 ...... 302 0.05 6,182,466 1.356% due 20/06/67 ...... 531 0.08 3,667,261 1.695% due 20/06/67 ...... 283 0.04 1,176,119 2.003% due 20/06/67 ...... 143 0.02 2,432,469 2.188% due 20/06/67 ...... 370 0.06 4,978,302 1.458% due 20/07/67 ...... 492 0.08 3,907,984 1.485% due 20/08/67 ...... 383 0.06 5,663,465 1.665% due 20/08/67 ...... 592 0.09 3,414,884 1.709% due 20/08/67 ...... 452 0.07 4,287,971 1.988% due 20/08/67 ...... 653 0.10 2,083,327 2.543% due 20/12/67 ...... 244 0.04 2,497,320 1.744% due 20/02/68 ...... 358 0.06 4,299,385 1.881% due 20/03/68 ...... 407 0.06
Graphic Packaging International LLC
1,000,000 4.750% due 15/04/21 ...... 1,015 0.16
GS Mortgage Securities Trust
19,000 5.840% due 10/01/45 ...... 19 0.00 GSAA Trust
Turk Telekomunikasyon AS 500,000 3.750% due 19/06/19 ...... 487 0.08 Sweden (0.06%)
Svenska Handelsbanken AB 400,000 2.597% due 07/06/19 ...... 400 0.06 United Kingdom (0.67%)
Heathrow Finance Plc GBP 1,200,000 5.375% due 01/09/19 ...... 1,618 0.25 United Kingdom Gilt
2,000,000 4.500% due 07/03/19 ...... 2,651 0.42 4,269 0.67 United States (5.65%)
Anheuser-Busch InBev Finance Inc
USD 2,508,000 2.743% due 01/02/19 ...... 2,511 0.40 Apple Inc
1,125,000 3.130% due 22/02/19 ...... 1,129 0.18 AT&T Inc 1,000,000 3.221% due 27/11/18 ...... 1,001 0.16 500,000 3.001% due 11/03/19 ...... 501 0.08
Bank of America Corp 1,000,000 6.875% due 15/11/18 ...... 1,005 0.16
BMW US Capital LLC 500,000 1.500% due 11/04/19 ...... 497 0.08
Caterpillar Financial Services Corp
500,000 2.100% due 09/06/19 ...... 498 0.08 Chevron Corp
755,000 1.561% due 16/05/19 ...... 750 0.12 Cisco Systems Inc
684,000 2.678% due 20/09/19 ...... 686 0.11
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 337
Principal Amount
Fair Value USD ‘000
Fund %
Citibank NA 250,000 2.571% due 09/11/18 ....... 250 0.04
Crown Point Capital LCC 2,300,000 2.330% due 13/11/18 ....... 2,300 0.36
eBay Inc 750,000 2.823% due 01/08/19 ....... 752 0.12
Fannie Mae Discount Notes 4,000,000 Zero Coupon due 22/10/18 3,991 0.63
Federal Farm Credit Discount Notes
3,000,000 Zero Coupon due 22/10/18 2,994 0.47 2,000,000 Zero Coupon due 08/11/18 1,990 0.31
Federal Home Loan Bank Discount Notes
3,000,000 Zero Coupon due 03/10/18 2,994 0.47 2,000,000 Zero Coupon due 15/10/18 1,993 0.32 1,000,000 Zero Coupon due 26/10/18 997 0.16
Freddie Mac Discount Notes 2,000,000 Zero Coupon due 18/10/18 1,991 0.31
General Mills Inc 500,000 6.590% due 15/10/18 ....... 501 0.08
Goldman Sachs Group Inc 400,000 3.414% due 15/11/18 ....... 401 0.06
Honda Auto Receivables Owner Trust
139,892 1.230% due 23/09/19 ....... 140 0.02
Hughes Satellite Systems Corp
1,250,000 6.500% due 15/06/19 ....... 1,277 0.20 Johnson & Johnson
550,000 2.591% due 01/03/19 ....... 551 0.09 Microsoft Corp
400,000 1.300% due 03/11/18 ....... 400 0.06
Station Place Securitization Trust
439,000 2.912% due 24/11/18 ....... 439 0.07 505,000 3.112% due 24/04/19 ....... 504 0.08 398,000 2.912% due 24/07/19 ....... 398 0.06
Station Place Securitization Trust
491,000 2.912% due 24/09/19 ....... 490 0.08 US Bancorp
800,000 2.735% due 25/04/19 ....... 801 0.13 Wells Fargo Bank
1,000,000 1.750% due 24/05/19 ....... 994 0.16 35,726 5.65
Total Short Term Investments ........................ 51,122 8.08
Bank Loans (0.80%) France (0.18%)
Horizon Holdings III SAS EUR 1,000,000 2.750% due 29/10/22 ....... 1,161 0.18
Principal Amount
Fair Value USD ‘000
Fund %
United States (0.62%) Acrisure LLC USD 947,125 5.992% due 22/11/23 ...... 951 0.15 Crown Finance US Inc
547,250 4.742% due 28/02/25 ...... 547 0.08 CSC Holdings LLC
548,625 4.658% due 25/01/26 ...... 552 0.09 First Data Corp
876,264 4.212% due 08/07/22 ...... 879 0.14
MGM Growth Properties Operating Partnership LP
989,848 4.242% due 21/03/25 ...... 992 0.16 3,921 0.62 Total Bank Loans .............. 5,082 0.80
Total Transferable Securities ........................... 467,948 73.94
Certificates of Deposit (2.69%) Canada (0.70%) Bank of Nova Scotia 2,100,000 2.606% due 30/12/19 ...... 2,098 0.33
Canadian Imperial Bank of Commerce
1,700,000 2.800% due 04/05/20 ...... 1,700 0.27 National Bank of Canada 600,000 1.750% due 08/05/19 ...... 600 0.10 4,398 0.70 France (0.16%)
Credit Agricole & Investment Bank
1,000,000 2.689% due 30/07/20 ...... 1,000 0.16 Japan (0.16%)
Sumitomo Mitsui Banking Corp
1,000,000 2.774% due 15/05/19 ...... 999 0.16 Norway (0.36%) DNB Bank ASA 2,300,000 2.561% due 10/02/20 ...... 2,299 0.36 Sweden (0.84%) Nordea Bank AB 800,000 2.692% due 21/02/19 ...... 800 0.13 1,500,000 2.608% due 10/08/20 ...... 1,500 0.24 Svenska Handelsbanken 1,200,000 2.617% due 21/10/19 ...... 1,200 0.19 Swedbank AB 1,800,000 2.632% due 24/08/20 .......... 1,800 0.28 5,300 0.84
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 338 Russell Investments Unconstrained Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
United Kingdom (0.47%) Mizuho International 3,000,000 Zero Coupon due 15/10/18 2,996 0.47
Total Certificates of Deposit ................................ 16,992 2.69
Commercial Paper (9.51%) Australia (0.10%)
Commonwealth Bank of Australia
600,000 Zero Coupon due 19/11/18 598 0.10 Canada (0.65%)
Ontario Teachers Finance Trust
2,270,000 Zero Coupon due 15/02/19 2,248 0.35 600,000 Zero Coupon due 13/05/19 590 0.09 PSP Capital Inc 1,300,000 1.000% due 07/11/18 ....... 1,300 0.21 4,138 0.65 Denmark (0.74%) Danske Bank A/S
EUR 4,000,000 Zero Coupon due 17/10/18 4,651 0.74 France (0.94%)
Banque Federative Du Credit Mutuel SA
USD 2,000,000 Zero Coupon due 23/10/18 1,989 0.32 BPCE SA 2,000,000 Zero Coupon due 18/01/19 1,984 0.31 Sanofi 2,000,000 Zero Coupon due 21/11/18 1,983 0.31 5,956 0.94 Germany (0.64%)
DekaBank Deutsche Girozentrale-Anleihe
EUR 3,000,000 1.000% due 04/10/18 ....... 3,488 0.55 NRW Bank 575,000 Zero Coupon due 05/10/18 575 0.09 4,063 0.64 Jersey, Channel Islands (0.39%)
Cancara Asset Securitisation Ltd
2,000,000 Zero Coupon due 23/10/18 1,997 0.31 500,000 Zero Coupon due 19/11/18 498 0.08 2,495 0.39 Luxembourg (0.09%)
Nestle Finance International Ltd
575,000 Zero Coupon due 09/10/18 575 0.09
Principal Amount
Fair Value USD ‘000
Fund %
United Kingdom (1.44%) Barclays Bank Plc
EUR 2,500,000 Zero Coupon due 19/10/18 2,906 0.46 USD 600,000 Zero Coupon due 13/11/18 598 0.10
3,000,000 Zero Coupon due 02/01/19 2,981 0.47 HSBC Bank Plc 2,000,000 1.000% due 10/04/19 2,000 0.32 Nationwide Building Society 600,000 Zero Coupon due 03/12/18 598 0.09 9,083 1.44 United States (4.52%) Apple Inc 600,000 Zero Coupon due 01/11/18 599 0.10 AT&T Inc 500,000 Zero Coupon due 28/05/19 490 0.08 Atlantic Asset Securitization 600,000 Zero Coupon due 17/12/18 597 0.09 Bedford Row Funding Corp 600,000 Zero Coupon due 17/10/18 599 0.09
Caterpillar Financial Services Corp
1,700,000 Zero Coupon due 14/11/18 1,687 0.27 Chariot Funding LLC 2,000,000 Zero Coupon due 04/02/19 1,983 0.31 Chevron Corp 600,000 Zero Coupon due 01/10/18 600 0.10
Collateralized Commercial Paper Co LLC
600,000 Zero Coupon due 12/10/18 599 0.09 1,000,000 Zero Coupon due 03/01/19 1,000 0.16 CRC Funding LLC 600,000 Zero Coupon due 13/11/18 598 0.09 Danske Corp 600,000 Zero Coupon due 02/11/18 599 0.09 Eni Finance USA Inc 700,000 Zero Coupon due 04/10/18 700 0.11 Fairway Finance Co LLC 600,000 Zero Coupon due 06/11/18 599 0.09 Gotham Funding Corp 1,400,000 Zero Coupon due 30/10/18 1,397 0.22 ING US Funding LLC 2,380,000 Zero Coupon due 12/04/19 2,380 0.38 John Deere Capital Corp 2,200,000 Zero Coupon due 01/10/18 2,200 0.35 Liberty Funding LLC 600,000 Zero Coupon due 07/11/18 599 0.09 LMA-Americas LLC 1,200,000 Zero Coupon due 25/10/18 1,198 0.19
Manhattan Asset Funding Co LLC
600,000 Zero Coupon due 02/10/18 600 0.10
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 339
Principal Amount
Fair Value USD ‘000
Fund %
MetLife Short Term Funding LLC
600,000 Zero Coupon due 10/10/18 600 0.10 Old Line Funding LLC 575,000 Zero Coupon due 16/10/18 574 0.09 2,200,000 Zero Coupon due 28/11/18 2,192 0.35 Regency Markets No 1 LLC 575,000 Zero Coupon due 11/10/18 575 0.09 Sheffield Receivable Corp 1,500,000 Zero Coupon due 05/11/18 1,496 0.24 Simon Property Group LP 600,000 Zero Coupon due 15/10/18 599 0.09 Swedbank AB 575,000 Zero Coupon due 17/10/18 574 0.09 Thunder Bay Funding LLC 600,000 Zero Coupon due 09/11/18 599 0.09 900,000 Zero Coupon due 28/11/18 897 0.14 Total Capital Ltd 900,000 Zero Coupon due 16/10/18 898 0.14 Wal-Mart Stores Inc 600,000 Zero Coupon due 01/10/18 600 0.10 28,628 4.52 Total Commercial Paper ... 60,187 9.51 Money Market Instruments (13.84%) Belgium (0.92%)
Kingdom of Belgium Treasury Bill
EUR 5,000,000 Zero Coupon due 08/11/18 5,810 0.92 Italy (0.37%)
Italy Buoni Ordinari del Tesoro BOT
2,000,000 Zero Coupon due 31/10/18 2,324 0.37
Principal Amount
Fair Value USD ‘000
Fund %
France (0.92%) France Treasury Bill BTF 1,000,000 Zero Coupon due 03/10/18 1,162 0.18 4,000,000 Zero Coupon due 17/10/18 4,646 0.74 5,808 0.92 United States (11.63%) United States Treasury Bill
USD 5,000,000 Zero Coupon due 04/10/18 4,983 0.79 4,500,000 Zero Coupon due 04/10/18* 4,499 0.71 3,000,000 Zero Coupon due 18/10/18 2,997 0.47 13,000,000 Zero Coupon due 25/10/18 12,982 2.05 3,000,000 Zero Coupon due 01/11/18 2,995 0.47 3,800,000 Zero Coupon due 08/11/18** 3,792 0.60 291,000 Zero Coupon due 08/11/18 290 0.05 4,000,000 Zero Coupon due 23/11/18** 3,988 0.63 5,000,000 Zero Coupon due 23/11/18 4,978 0.79 6,000,000 Zero Coupon due 13/12/18 5,974 0.94 26,400,000 Zero Coupon due 07/03/19 26,138 4.13 73,616 11.63
Total Money Market Instruments ....................... 87,558 13.84
Number of Shares
Investment Funds (0.44%) Ireland (0.44%)
2,745
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 2,827 0.44
Total Investment Funds .... 2,827 0.44
Total Investments excluding Financial Derivative Instruments ..... 635,512 100.42
Financial Derivative Instruments (0.35%) Open Futures Contracts ((0.07)%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
12,505
71.05
176 of 10 Year Australian Bond Futures Long Futures Contracts Expiring December 2018 ................................. (113) (0.02)
32,014
103.60
309 of Canada 10 Year Bond Futures Long Futures Contracts Expiring December 2018 .................................
(310) (0.05)
(44,395)
(186.53)
238 of Euro-Bund Futures Short Futures Contracts Expiring December 2018 ................................. 500 0.08
(50,459)
(159.18)
317 of Long Gilt Futures Short Futures Contracts Expiring December 2018 ................................. 464 0.07
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 340 Russell Investments Unconstrained Bond Fund
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
62,839
120.15
523 of U.S. 10 Year Note Futures Long Futures Contracts Expiring December 2018 .................................
(716) (0.11)
(5,569)
(2,931.16)
38 of S&P 500 E Mini Index Short Futures Contracts Expiring December 2018 ................................. 23 0.00
36,756
113.10
325 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (202) (0.03)
27,665
105.59
131 of U.S. 2 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (59) (0.01)
Unrealised gain on open futures contracts ..................................................................... 987 0.15 Unrealised loss on open futures contracts ...................................................................... (1,400) (0.22) Net unrealised gain (loss) on open futures contracts ................................................ (413) (0.07) Open Forward Foreign Currency Exchange Contracts (0.02%)
Unrealised gain on open forward foreign currency exchange contracts ........................ 1,645 0.26 Unrealised loss on open forward foreign currency exchange contracts ......................... (1,490) (0.24) Net unrealised gain (loss) on open forward foreign currency exchange contracts . 155 0.02 Currency Options Purchased (0.05%)
Notional Amount
USD ‘000
Fair Value USD ‘000
Fund %
Germany (0.02%)
19,000
Call at 1.55 EUR CAD
Expiring October 2018 .................................................................
99 0.02 United States (0.03%)
25,000
Put at 0.95 CHF USD
Expiring October 2018 .................................................................
13 0.00 25,000
Call at 1,160.00 USD KRW
Expiring March 2019 ...................................................................
200 0.03
213 0.03 Total currency options purchased at fair value (Premium paid USD 447,156) .......
312 0.05
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 342 Russell Investments Unconstrained Bond Fund
Currency Options Written ((0.04)%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States ((0.04)%) (6,250)
Call at 112.50 USD JPY
Expiring October 2018 ................................................................. (54) (0.01) (25,000)
Call at 1,195.00 USD KRW
Expiring March 2019 ................................................................... (110) (0.02) (7,500)
Put at 1,080.00 KRW USD
Expiring March 2019 ................................................................... (80) (0.01) Total currency options written at fair value (Premium received USD (285,225)) ... (244) (0.04) Futures Options Purchased (0.07%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
Germany (0.00%) 87
Put at 157.00 Euro-Bund Future Option
Expiring November 2018 ............................................................. 18 0.00 United States (0.07%)
13 Put at 2,700.00 S&P 500 Index Future Option
Expiring December 2018 ............................................................. 241 0.05 125
Call at 121.50 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. 2 0.00 750
Call at 121.00 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. 12 0.00 1,250
Call at 114.20 U.S. 5 Year Future Option
Expiring October 2018 ................................................................. 10 0.00 250
Call at 122.50 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. - 0.00 50
Call at 119.50 U.S. 10 Year Future Option
Expiring November 2018 ............................................................. 16 0.00 375
Call at 120.50 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. 12 0.00 50
Put at 119.50 U.S. 10 Year Future Option
Expiring November 2018 ............................................................. 52 0.01 625
Put at 112.20 U.S. 5 Year Future Option
Expiring October 2018 ................................................................. 88 0.01 150
Call at 113.70 U.S. 5 Year Future Option
Expiring November 2018 ............................................................. 9 0.00 442 0.07
Total futures options purchased at fair value (Premium paid USD 727,298) ........... 460 0.07 Futures Options Written ((0.09)%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States ((0.09)%) (250)
Put at 112.70 U.S. 5 Year Future Option
Expiring October 2018 ................................................................. (102) (0.02) (250)
Call at 113.00 U.S. 5 Year Future Option
Expiring October 2018 ................................................................. (20) 0.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 343
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
(250) Call at 113.20 U.S. 5 Year Future Option
Expiring October 2018 ................................................................. (10) 0.00 (250)
Put at 119.00 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. (133) (0.02) (250)
Put at 118.50 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. (70) (0.01) (312)
Call at 119.50 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. (49) (0.01) (50)
Call at 112.70 U.S. 5 Year Future Option
Expiring November 2018 ............................................................. (13) 0.00 (13)
Put at 2,575.00 S&P 500 Index Future Option
Expiring December 2018 ............................................................. (141) (0.03) (124)
Call at 11920 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. (27) 0.00 (50)
Put at 117.70 U.S. 10 Year Future Option
Expiring October 2018 ................................................................. (5) 0.00 Total futures options written at fair value (Premium received USD (523,262)) ....... (570) (0.09) Index Options Purchased (0.19%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
Germany (0.02%) 15
Call at 11.00 ESTX Banks Index
Expiring December 2018 ............................................................. 128 0.02 United States (0.17%)
13 Put at 1,600.00 Russell 2000 Index
Expiring November 2018 ............................................................. 34 0.01 3
Put at 2,700.00 S&P 500 Index
Expiring October 2018 ................................................................. 4 0.00 13
Call at 3,000.00 S&P 500 Index
Expiring October 2018 ................................................................. 115 0.02 3
Put at 2,700.00 S&P 500 Index
Expiring November 2018 ............................................................. 63 0.01 3
Call at 2,940.00 S&P 500 Index
Expiring November 2018 ............................................................. 67 0.01 13
Put at 2,880.00 S&P 500 Index
Expiring November 2018 ............................................................. 58 0.01 50
Put at 2,700.00 S&P 500 Index
Expiring October 2018 ................................................................. 75 0.01 13
Put at 2,700.00 S&P 500 Index
Expiring December 2018 ............................................................. 238 0.04 13
Put at 2,650.00 S&P 500 Index
Expiring September 2018 ............................................................. 1 0.00 13
Put at 2,775.00 S&P 500 Index
Expiring November 2018 ............................................................. 238 0.04 5
Call at 2,93.00 S&P 500 Index
Expiring November 2018 ............................................................. 166 0.02 1,059 0.17
Total index options purchased at fair value (Premium paid USD 2,031,397) .......... 1,187 0.19
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 344 Russell Investments Unconstrained Bond Fund
Index Options Written ((0.16)%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
Germany ((0.01)%) (75)
Call at 120.00 ESTX Banks Index
Expiring December 2018 ............................................................. (46) (0.01) United States ((0.15))%)
(125) Put at 13.50 CBOE SPX Volatility Index
Expiring October 2018 ................................................................. (81) (0.01) (15)
Put at 1,600.00 Russell 2000 Index
Expiring October 2018 ................................................................. (34) (0.01) (13)
Put at 2,650.00 S&P 500 Index
Expiring November 2018 ............................................................. (127) (0.02) (13)
Put at 2,650.00 S&P 500 Index
Expiring November 2018 (89) (0.02) (13)
Put at 2,630.00 S&P 500 Index
Expiring November 2018 ............................................................. (116) (0.02) (3)
Put at 2,880.00 S&P 500 Index
Expiring November 2018 ............................................................. (52) (0.01) (3)
Call at 2,940.00 S&P 500 Index
Expiring November 2018 ............................................................. (48) (0.01) (13)
Put at 2,600.00 S&P 500 Index
Expiring December 2018 ............................................................. (154) (0.02) (13)
Put at 2,625.00 S&P 500 Index
Expiring January 2018 ................................................................. (245) (0.03) (946) (0.15)
Total index options written at fair value (Premium received USD (1,606,310)) ...... (992) (0.16) Equity Options Purchased (0.06%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States (0.06%) 7,000
Call at 99.38 Fannie Mae Pool TBA
Expiring November 2018 ............................................................. 5 0.00 7,000
Call at 99.19 Fannie Mae Pool TBA
Expiring November 2018 ............................................................. 7 0.00 7,000
Call at 99.56 Fannie Mae Pool TBA
Expiring November 2018 ............................................................. 3 0.00 7,000
Put at 98.48 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. 50 0.01 7,000
Put at 98.64 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. 57 0.01 7,000
Call at 98.17 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. 35 0.01 7,000
Put at 98.80 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. 64 0.01 7,000
Call at 98.02 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. 35 0.01 7,000
Call at 98.33 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. 35 0.01 Total equity options purchased at fair value (Premium paid USD 331,406) ............ 291 0.06
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 345
Equity Options Written ((0.03)%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States ((0.03)%) (7,000)
Call at 99.54 Fannie Mae Pool TBA
Expiring November 2018 ............................................................. (4) 0.00 (7,000)
Call at 99.72 Fannie Mae Pool TBA
Expiring November 2018 ............................................................. (2) 0.00 (7,000)
Call at 99.91 Fannie Mae Pool TBA
Expiring November 2018 ............................................................. (2) 0.00 (7,000)
Put at 98.02 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (32) (0.01) (7,000)
Put at 98.17 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (38) (0.01) (7,000)
Call at 98.69 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (13) 0.00 (7,000)
Call at 98.51 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (22) 0.00 (7,000)
Call at 98.85 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (13) 0.00 (7,000)
Call at 99.01 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (13) 0.00 (7,000)
Call at 98.67 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (22) 0.00 (7,000)
Put at 97.86 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (27) 0.00 (7,000)
Put at 97.55 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (19) 0.00 (7,000)
Put at 97.70 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (23) 0.00 (7,000)
Put at 98.33 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (43) (0.01) (7,000)
Call at 98.35 Fannie Mae Pool TBA
Expiring December 2018 ............................................................. (22) 0.00 Total equity options written at value (Premium received USD (292,031)) ............... (295) (0.03) Swaptions Purchased (0.04%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States (0.04%) 5,865 Put at 3.05 on 1MX10Y
Expiring October 2018 .................................................................. 44 0.00 5,865 Call at 2.89 on 1MX10Y
Expiring October 2018 .................................................................. - 0.00 3,910 Put at 3.10 on 5WX10Y
Expiring October 2018 .................................................................. 20 0.00 3,910 Call at 2.93 on 5WX10Y
Expiring October 2018 .................................................................. - 0.00 5,865 Call at 3.05 on 5WX10Y
Expiring November 2018 .............................................................. 17 0.00 5,865 Put at 3.22 on 5WX10Y
Expiring November 2018 .............................................................. 16 0.00 5,865 Call at 3.09 on 1MX10Y
Expiring October 2018 .................................................................. 18 0.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 346 Russell Investments Unconstrained Bond Fund
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
51,354 Call at 3.08 on 5WX10Y Expiring October 2018 .................................................................. 161 0.04
5,865 Put at 3.25 on 1MX10Y Expiring October 2018 .................................................................. 8 0.00
Total swaptions purchased at fair value (Premium paid USD 274,507) .................... 284 0.04 Swaptions Written ((0.05)%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
United States ((0.05)%) (2,933) Call at 2.87 on 1MX10Y
Expiring October 2018 ................................................................. - 0.00 (2,933) Put at 2.97 on 1MX10Y
Expiring October 2018 ................................................................. (41) (0.01) (1,955) Put at 3.02on 5WX10Y
Expiring October 2018 ................................................................. (1) 0.00 (1,955) Put at 3.02on 5WX10Y
Expiring October 2018 ................................................................. (21) 0.00 (2,933) Put at 3.13on 5WX10Y
Expiring November 2018 ............................................................. (17) 0.00 (2,933) Call at 3.13 on 5WX10Y
Expiring November 2018 ............................................................. (17) 0.00 (2,933) Call at 3.17 on 1MX10Y
Expiring October 2018 ................................................................. (18) 0.00 (25,677) Call at 3.17 on 5WX10Y
Expiring October 2018 ................................................................. (169) (0.04) (2,933) Put at 3.17on 1MX10Y
Expiring October 2018 ................................................................. (10) 0.00 Total swaptions written at fair value (Premium received USD (267,553)) ............... (294) (0.05) Interest Rate Swaps (0.02%)
Ccy Notional
Amount ‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD
3,910
3.03% USD 3 Month
LIBORI 25/09/2028
30 0.01
USD
87,860
3.05% USD 3 Month
LIBORI 19/12/2020
71 0.01 USD 62,601 3.10% 2.93% 19/12/2023 17 0.00
USD
82
3.17% USD 3 Month
LIBORI 30/10/2028
- 0.00
USD
(2,568)
3.17% USD 3 Month
LIBORI 01/11/2028
(7) 0.00
USD
(2,487)
3.14% USD 3 Month
LIBORI 28/09/2028
(4) 0.00
USD
2,991
3.12% USD 3 Month
LIBORI 02/10/2028
- 0.00
USD
(1,955) USD 3 Month
LIBOR 2.94% 25/09/2028
(32) (0.01)
USD
35,544 USD 3 Month
LIBOR 3.15% 19/12/2028
45 0.01
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 347
Ccy Notional
Amount ‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD
1,126 USD 3 Month
LIBOR 3.20% 19/12/2048
16 0.00 Interest rate swaps at positive fair value ......................................................................... 179 0.03 Interest rate swaps at negative fair value ........................................................................ (43) (0.01) Interest rate swaps at fair value .................................................................................. 136 0.02 Credit Default Swaps ((0.36)%)
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
EUR (1,250) Thyssenkrupp AG # 1.00% 20/12/2023 (18) 0.00
USD 14 CMBX.NA. BB Indices 5.00% # 17/01/2047 2 0.00
USD (276) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (32) (0.01)
USD (34) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (4) 0.00
USD (34) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (4) 0.00
USD (3,000) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (346) (0.05)
USD (318) CMBX.NA. BB Indices # 5.00% 11/05/2063 (65) (0.01)
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 349
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (143) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (16) 0.00
USD (4,352) CMBX.NA.
BBB- Indices # 3.00% 17/01/2047 (237) (0.04)
USD (29) CMBX.NA.
BBB- Indices 03MLIB
OR 3.00% 11/05/2063 (3) 0.00
USD (128) CMBX.NA.
BBB- Indices 12MLIB
OR 3.00% 11/05/2063 (15) 0.00
USD (1,497) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (173) (0.04)
USD 441 CMBX.NA. BB Indices 5.00% 12MLIBOR 17/01/2047 54 0.02
USD 93 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 5 0.00
USD 301 CMBX.NA. BB Indices 3.00% 01MLIBOR 17/01/2047 16 0.00
USD (45)
CMBX.NA. BBB-.6 2063-05-
11 01MLIB
OR 3.00% 11/05/2063 (5) 0.00
USD (22)
CMBX.NA. BBB-.6 2063-05-
11 01MLIB
OR 3.00% 11/05/2063 (3) 0.00
USD 154
CMBX.NA. BBB-.7 2047-01-
17 3.00% 01MLIBOR 17/01/2047 8 0.00
USD 57
CMBX.NA. BBB-.7 2047-01-
17 3.00% 01MLIBOR 17/01/2047 3 0.00
USD (13)
CMBX.NA. BBB-.6 2063-05-
11 01MLIB
OR 3.00% 11/05/2063 (2) 0.00
USD 91
CMBX.NA. BBB-.7 2047-01-
17 3.00% 01MLIBOR 17/01/2047 5 0.00
USD (80)
CMBX.NA. BBB-.6 2063-05-
11 03MLIB
OR 1.00% 11/05/2063 (9) 0.00
USD (327) CMBX.NA. BBB Indices
01MLIBOR 3.00% 11/05/2063 (38) (0.01)
USD (42)
CMBX.NA. BBB-.6 2063-05-
11 01MLIB
OR 3.00% 11/05/2063 (5) 0.00
USD 228 CMBX.NA. BB Indices 5.00% 01MLIBOR 17/01/2047 28 0.00
USD 59 CMBX.NA.
BB.7 2047-01-17 1.00% 01MLIBOR 17/01/2047 7 0.00
USD 341 CMBX.NA.
BB.7 2047-01-17 1.00% 01MLIBOR 17/01/2047 42 0.01
USD 212 CMBX.NA. BB Indices 5.00% 01MLIBOR 17/01/2047 26 0.00
USD (81)
CMBX.NA. BBB-.6 2063-05-
11 01MLIB
OR 3.00% 11/05/2063 (9) 0.00
USD 11 CMBX.NA. BB Indices 5.00% 01MLIBOR 17/01/2047 1 0.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 350 Russell Investments Unconstrained Bond Fund
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (173) CMBX.NA.
BBB- Indices 01MLIB
OR 3.00% 11/05/2063 (20) 0.00
USD 4 CMBX.NA.
A Indices 01MLIB
OR 2.00% 11/05/2063 - 0.00
USD (81) CMBX.NA.
A Indices 01MLIB
OR 2.00% 11/05/2063 (1) 0.00
USD (81) CMBX.NA.A.6
2063-05-11 1.00% # 11/05/2063 (1) 0.00
USD 68 CMBX.NA.
BBB- Indices 1.00% 01MLIBOR 17/01/2047 4 0.00
USD (136) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (16) 0.00
USD (142) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (16) 0.00
USD (97) CMBX.NA.
BBB- Indices # 1.00% 11/05/2063 (11) 0.00
USD (78) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (9) 0.00
USD 53 CMBX.NA. BB Indices 1.00% 01MLIBOR 17/01/2047 6 0.00
USD (83) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD (83) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD (116) CMBX.NA. BB Indices 5.00% # 17/01/2047 14 0.00
USD (81) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (9) 0.00
USD (41) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (5) 0.00
USD (10,000) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (1,153) (0.20)
USD (250) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (29) 0.00
USD (283) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (33) (0.01)
USD (231) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (27) 0.00
USD (160) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (18) 0.00
USD 50 CMBX.NA. BB Indices 5.00% # 17/01/2047 6 0.00
USD (4,200) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (485) (0.10)
USD (500) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (58) (0.02)
USD (333) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (38) (0.02)
USD (134) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (15) 0.00
USD (269) CMBX.NA
.BBB- Indices # 3.00% 11/05/2063 (31) 0.00
USD 24 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 1 0.00
USD (202) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (23) 0.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 351
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (134) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (15) 0.00
USD 14 CMBX.NA. BB Indices 5.00% # 17/01/2047 2 0.00
USD (1,497) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (173) (0.04)
USD (42) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (5) 0.00
USD (2,096) CMBX.NA
.BBB- Indices # 3.00% 11/05/2063 (242) (0.05)
USD (138) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (16) 0.00
USD (55) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (6) 0.00
USD (71) CMBX.NA
.BBB- Indices # 3.00% 11/05/2063 (8) 0.00
USD (71) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (8) 0.00
USD (383) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (44) (0.01)
USD (83) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD (196) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (23) 0.00
USD (394) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (45) (0.01)
USD (91) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD (23) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (3) 0.00
USD 204 CMBX.NA. BB Indices 5.00% # 17/01/2047 26 0.00
USD (72) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (8) 0.00
USD (422) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (49) 0.00
USD (169) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (19) 0.00
USD 1 CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 - 0.00
USD (60) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (7) 0.00
USD 204 CMBX.NA. BB Indices 5.00% # 17/01/2047 25 0.00
USD (25) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (3) 0.00
USD (2,112) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (244) (0.06)
USD (62) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (7) 0.00
USD (62) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (7) 0.00
USD (152) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (18) 0.00
USD (76 ) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (9) 0.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 352 Russell Investments Unconstrained Bond Fund
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (76) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (9) 0.00
USD (166) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (19) 0.00
USD 2 CMBX.NA. BB Indices 5.00% # 17/01/2047 - 0.00
USD (37 ) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (4) 0.00
USD 384 CMBX.NA. BB Indices 5.00% # 17/01/2047 47 0.01
USD (167) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (19) 0.00
USD (113) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (13) 0.00
USD (284) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (33) (0.01)
USD (348) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (40) (0.01)
USD (206) CMBX.NA. BB Indices # 5.00% 11/05/2063 (41) (0.01)
USD 945 CMBX.NA. BB Indices 5.00% # 17/01/2047 117 0.02
USD 173 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 9 0.00
USD (62) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (7) 0.00
USD (62) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (7) 0.00
USD 184 CMBX.NA. BB Indices 5.00% # 17/01/2047 23 0.00
USD 346 CMBX.NA. BB Indices 5.00% # 17/01/2047 42 0.01
USD 257 CMBX.NA. BB Indices 5.00% # 17/01/2047 31 0.00
USD (165) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (19) 0.00
USD (182) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (21) 0.00
USD 126 CMBX.NA. BB Indices 5.00% # 17/01/2047 15 0.00
USD (126) CMBX.NA. BB Indices # 5.00% 11/05/2063 (26) 0.00
USD (611) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (70) (0.01)
USD 135 CMBX.NA. BB Indices 5.00% # 17/01/2047 17 0.00
USD (135) CMBX.NA. BB Indices # 5.00% 11/05/2063 (28) 0.00
USD 82 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 4 0.00
USD (3,000) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (346) (0.05)
USD (696) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (80) (0.01)
USD 754 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 41 0.01
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 353
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (25) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (3) 0.00
USD 344 CMBX.NA. BB Indices 5.00% # 17/09/2058 47 0.01
USD (710) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (81) (0.01)
USD 460 CMBX.NA. BB Indices 5.00% # 17/01/2047 56 0.01
USD (102) CMBX.NA. BB Indices # 5.00% 11/05/2063 (21) 0.00
USD 204 CMBX.NA. BB Indices 5.00% # 17/01/2047 25 0.00
USD (204) CMBX.NA. BB Indices # 5.00% 11/05/2063 (42) (0.01)
USD (309) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (36) 0.00
USD 246 CMBX.NA. BB Indices 5.00% # 17/01/2047 31 0.00
USD (246) CMBX.NA. BB Indices # 5.00% 11/05/2063 (50) (0.01)
USD 630 CMBX.NA. BB Indices 5.00% # 17/01/2047 77 0.01
USD (15) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (2) 0.00
USD 172 CMBX.NA.
A Indices 2.00% # 11/05/2063 2 0.00
USD (15) CMBX.NA
BBB- Indices # 3.00% 11/05/2063 (2) 0.00
USD (96) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (11) 0.00
USD (11) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (1) 0.00
USD 111 CMBX.NA. BB Indices 5.00% # 17/09/2058 15 0.00
USD (8) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (1) 0.00
USD (15) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (2) 0.00
USD (22) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (3) 0.00
USD (434) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (49) (0.01)
USD 150 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 8 0.00
USD (114) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (13) 0.00
USD (46) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (5) 0.00
USD (31) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (4) 0.00
USD (67) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (8) 0.00
USD (85) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD 336 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 18 0.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 354 Russell Investments Unconstrained Bond Fund
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (35) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (4) 0.00
USD (336) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (39) (0.01)
USD 61 CMBX.NA. BB Indices 5.00% # 17/09/2058 8 0.00
USD 31 CMBX.NA. BB Indices 5.00% # 17/09/2058 4 0.00
USD 6 CMBX.NA. A
Indices # 2.00% 11/05/2063 - 0.00
USD (14) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (2) 0.00
USD (8) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (1) 0.00
USD (10) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (1) 0.00
USD 224 CMBX.NA. BB Indices 5.00% # 17/09/2058 31 0.00
USD 224 CMBX.NA. BB Indices 5.00% # 17/09/2058 31 0.00
USD (165) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (19) 0.00
USD (35) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (4) 0.00
USD (127) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (15) 0.00
USD 226 CMBX.NA. BB Indices 5.00% # 17/01/2047 29 0.00
USD (227) CMBX.NA. BB Indices # 5.00% 17/01/2047 (28) 0.00
USD 227 CMBX.NA. BB Indices 5.00% # 17/09/2058 31 0.00
USD (93) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (11) 0.00
USD (140) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (16) 0.00
USD (240) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (28) 0.00
USD (31) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (4) 0.00
USD (110) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (13) 0.00
USD 117 CMBX.NA. BB Indices 5.00% # 17/09/2058 16 0.00
USD 117 CMBX.NA. BB Indices 5.00% # 17/09/2058 16 0.00
USD (110) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (13) 0.00
USD (67) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (8) 0.00
USD (159) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (18) 0.00
USD 83 CMBX.NA. BB Indices 5.00% # 17/09/2058 11 0.00
USD (186) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (21) 0.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 355
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (93) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (11) 0.00
USD 139 CMBX.NA. BB Indices 5.00% # 17/09/2058 19 0.00
USD (296) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (34) 0.00
USD (178) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (21) 0.00
USD (180) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (21) 0.00
USD (132) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (15) 0.00
USD 32 CMBX.NA. BB Indices 5.00% # 17/09/2058 4 0.00
USD (99) CMBX.NA.BBB-
Indices # 3.00% 11/05/2063 (11) 0.00
USD (59) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (7) 0.00
USD 71 CMBX.NA. BB Indices 5.00% # 17/09/2058 11 0.00
USD (27) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (3) 0.00
USD (170) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (20) 0.00
USD (5,000) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (577) (0.18)
USD 67 CMBX.NA. BB Indices 5.00% # 17/09/2058 9 0.00
USD 498 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 27 0.00
USD (142) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (16) 0.00
USD (187) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (22) 0.00
USD (67) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (8) 0.00
USD (170) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (20) 0.00
USD (268) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (31) 0.00
USD (136) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (16) 0.00
USD (102) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (12) 0.00
USD 12 CMBX.NA. BB Indices 5.00% # 17/09/2058 2 0.00
USD (387) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (45) 0.00
USD (85) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD (91) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD (430) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (50) (0.02)
USD (89) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 356 Russell Investments Unconstrained Bond Fund
Ccy
Notional Amount
‘000 Security
Name Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD (69) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (8) 0.00
USD 72 CMBX.NA. BB Indices 5.00% # 17/09/2058 10 0.00
USD 272 CMBX.NA. BB Indices 5.00% # 17/09/2058 38 0.01
USD (731) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (84) (0.02)
USD (132) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (14) 0.00
USD (261) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (30) (0.01)
USD (89) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD (58) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (7) 0.00
USD (61) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (7) 0.00
USD 155 CMBX.NA.
BBB- Indices 3.00% # 17/01/2047 8 0.00
USD (99) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (11) 0.00
USD (107) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (12) 0.00
USD (203) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (23) 0.00
USD 93 CMBX.NA. BB Indices 5.00% # 17/09/2058 13 0.00
USD (79) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (9) 0.00
USD (69) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (8) 0.00
USD (130) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (15) 0.00
USD (198) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (23) 0.00
USD (132) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (15) 0.00
USD (156) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (18) 0.00
USD (86 ) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (10) 0.00
USD (172) CMBX.NA.
BBB- Indices # 3.00% 11/05/2063 (20) 0.00 Credit default swaps at positive fair value ........................................................................ 5,010 0.79 Credit default swaps at negative fair value ....................................................................... (7,261) (1.15) Credit default swaps at fair value ................................................................................. (2,251) (0.36)
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 357
Total Return Bond Swaps (0.00%)
Ccy
Notional Amount
‘000 Fund Pays
Fund Receives
Termination Date
Fair Value USD ‘000
Fund %
USD 377 3.40% USD 1 Month
LIBOR 12/01/2044 - 0.00
USD 8,210 3.40% USD 1 Month
LIBOR 12/01/2041 1 0.00
USD 17,852 USD 1 Month
LIBOR 3.40% 12/01/2041 2 0.00
USD 829 USD 1 Month
LIBOR 3.40% 12/01/2045 - 0.00
USD 358 3.40% USD 1 Month
LIBOR 12/01/2044 - 0.00
USD (8,210) 3.40% USD 1 Month
LIBOR 12/01/2041 (1) 0.00
USD (17,852) 4.50% USD 1 Month
LIBOR 12/01/2041 (1) 0.00 Total return bond swaps at positive fair value ................................................................... 3 0.00 Total return bond swaps at negative fair value .................................................................. (2) 0.00 Total return bond swaps at fair value ............................................................................ 1 0.00 Total Financial Derivative Instruments ......................................................................... (2,233) (0.35)
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (102.06%) ....................................................................... 645,870 102.06
Total Financial Liabilities at Fair Value through Profit or Loss ((1.99)%) ......................................................................... (12,591) (1.99)
Net Financial Assets at Fair Value through Profit or Loss (100.07%) ................................................................................ 633,279 100.07
Other Net Liabilities ((0.07)%) ............................................. (445) (0.07) Net Assets ................................................................................ 632,834 100.00
# In the event of bankruptcy or, the fund will pay/receive the notional amount to/from the counterparty. * Fully held as collateral by the counterparties in connection with collateral purposes for over the counter financial derivative instruments held by the Fund. ** Partly held as collateral by the brokers and counterparties in connection with collateral purposes for over the counter financial derivative instruments held by the Fund.
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing ......... 24.71 Transferable securities dealt in on another regulated market ......................................................................... 48.29 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) ................................ 5.62 Certificate of deposit ...................................................................................................................................... 2.40 Commercial paper .......................................................................................................................................... 8.52 Investment funds (UCITS) ............................................................................................................................. 0.40 Exchange trades financial derivative instruments .......................................................................................... 0.20 Over the counter financial derivative instruments ......................................................................................... 1.26 Other assets .................................................................................................................................................... 8.60 100.00
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 358 Russell Investments Unconstrained Bond Fund
The counterparties for the open futures contracts are:
BNP Paribas Morgan Stanley Goldman Sachs
The counterparties for the open forward foreign currency exchange contracts are:
Bank of America Merrill Lynch Goldman Sachs Bank of Montreal Morgan Stanley Barclays Bank Northern Trust BNP Paribas Royal Bank of Canada Brown Brothers Harriman Societe Generale Goldman Sachs State Street Bank and Trust Company Morgan Stanley Westpac
The counterparty for the currency options purchased are:
BNP Paribas Morgan Stanley The counterparty for the currency options written is BNP Paribas. The counterparty for the futures options purchased is BNP Paribas. The counterparty for the futures options written is BNP Paribas. The counterparty for the index options purchased is BNP Paribas. The counterparty for the index options written is BNP Paribas. The counterparty for the equity options purchased is JP Morgan. The counterparty for the equity options written is JP Morgan. The counterparties for swaptions purchased are:
Citibank Morgan Stanley Goldman Sachs
The counterparties for swaptions written are:
Citibank Morgan Stanley Goldman Sachs
The counterparty for the interest rate swaps is Barclays. The counterparties for the credit default swaps are:
Barclays Goldman Sachs Citigroup JP Morgan Citibank Morgan Stanley Credit Suisse AG
The counterparties for the total return bond swaps are:
Goldman Sachs JP Morgan
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Unconstrained Bond Fund 359
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 987 - - 987 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 1,645 - 1,645 Currency options purchased at fair value ......................... - 312 - 312 Futures options purchased at fair value ............................ 460 - - 460 Index options purchased at fair value ............................... 1,187 - - 1,187 Equity options purchased at fair value ............................. - 291 - 291 Swaptions purchased at fair value .................................... - 284 - 284 Interest rate swaps at fair value ........................................ - 179 - 179 Credit default swaps at fair value ..................................... - 5,010 - 5,010 Total return bond swaps at fair value ............................... - 3 - 3
Total assets ......................................................................... 2,634 643,236 - 645,870 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (1,400) - - (1,400) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (1,490) - (1,490) Currency options written at fair value .............................. - (244) - (244) Futures options written at fair value ................................. (570) - - (570) Index options written at fair value .................................... (992) - - (992) Equity options written at value ......................................... - (295) - (295) Swaptions written at fair value ......................................... - (294) - (294) Interest rate swaps at fair value ........................................ - (43) - (43) Credit default swaps at fair value ..................................... - (7,261) - (7,261) Total return bond swaps at fair value ............................... - (2) - (2)
Total liabilities ................................................................... (2,962) (9,629) - (12,591)
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 360 Russell Investments Unconstrained Bond Fund
As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 1,801 - - 1,801 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 5,613 - 5,613 Currency options purchased at fair value ......................... - 1,825 - 1,825 Futures options purchased at fair value ............................ 287 - - 287 Index options purchased at fair value ............................... 767 - - 767 Equity options purchased at fair value ............................. - 209 - 209 Swaptions purchased at fair value .................................... - 206 - 206 Interest rate swaps at fair value ........................................ - 1,686 - 1,686 Credit default swaps at fair value ..................................... - 5,453 - 5,453 Total return bond swaps at fair value ............................... - 21 - 21
Total assets ......................................................................... 2,855 595,796 5,574 604,225 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (1,120) - - (1,120) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (4,492) - (4,492) Currency options written at fair value .............................. - (560) - (560) Futures options written at fair value ................................. (263) - - (263) Index options written at fair value .................................... (1,283) - - (1,283) Equity options written at value ......................................... - (154) - (154) Swaptions written at fair value ......................................... - (216) - (216) Interest rate swaps at fair value ........................................ - (851) - (851) Credit default swaps at fair value ..................................... - (7,764) - (7,764) Total return bond swaps at fair value ............................... - (22) - (22)
Total liabilities ................................................................... (2,666) (14,059) - (16,725)
Russell Investment Company plc Russell Investments Unconstrained Bond Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Russell Investments Unconstrained Bond Fund 361
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 107,842 Class R Roll-Up Shares (107,917)
Fannie Mae Pool Fannie Mae Pool 3.000% due 15/05/46 73,700 3.000% due 12/04/18 (73,797) 3.000% due 15/09/46 73,506 3.000% due 15/05/46 (73,547) 3.000% due 15/08/48 73,356 3.000% due 15/05/46 (73,506) 3.000% due 15/07/48 73,287 3.000% due 15/09/46 (73,389) 3.000% due 15/06/48 73,253 3.000% due 15/08/48 (73,356) 3.000% due 01/05/48 45,443 3.000% due 15/06/48 (73,253) 3.000% due 12/04/48 37,081 3.000% due 01/05/48 (45,463) 3.000% due 15/10/46 36,813 3.000% due 01/04/48 (29,790) 3.000% due 01/04/48 29,633 U.S. Treasury Bills
U.S. Treasury Bills Zero Coupon due 27/12/18 (26,764) Zero Coupon due 27/12/18 26,746 Zero Coupon due 24/01/19 (25,041) Zero Coupon due 07/03/19 26,602 Fannie Mae Pool Zero Coupon due 24/01/19 24,984 3.000% due 01/02/48 (17,923)
Federal Home Loan Bank Discount Notes 3.000% due 01/11/47 (16,345) Zero Coupon due 27/08/18 19,997 3.000% due 01/04/48 (13,944)
Fannie Mae Pool 3.500% due 15/07/48 (13,915) 3.000% due 01/02/48 13,908 3.500% due 15/06/48 (13,908) 3.000% due 01/11/47 13,902 3.500% due 15/09/46 (13,902)
U.S. Treasury Bill 3.500% due 15/08/48 (13,873) Zero Coupon due 08/11/18 15,946 3.000% due 01/04/48 (12,686)
Fannie Mae Pool U.S. Treasury Bill 3.500% due 15/07/48 13,915 Zero Coupon due 08/11/18 (11,913) 3.500% due 15/06/48 13,908 3.500% due 15/09/46 13,902
Russell Investment Company plc Russell Investments Multi-Asset Conservative Strategy Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 362 Russell Investments Multi-Asset Conservative Strategy Fund
30 September 2018 (Unaudited) EUR ‘000
31 March 2018 (Audited) EUR ‘000
Assets Financial assets at fair value through profit or loss ...................................................... 6,742 7,389 Cash at bank (Note 2) ................................................................................................... 116 239 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 22 170 Debtors:
Receivable for investments sold ............................................................................... - 8 Prepayments and other debtors ................................................................................. 14 11
6,894 7,817 Liabilities Financial liabilities at fair value through profit or loss ................................................ (17) (8) Creditors – amounts falling due within one financial year:
(35) (327) Net assets attributable to redeemable participating shareholders ......................... 6,859 7,490 Movement in payable on fund shares redeemed between dealing NAV and year end . - 295 Net assets attributable to redeemable participating shareholders at dealing NAV ............................................................................................................................. 6,859 7,785
Russell Investment Company plc Russell Investments Multi-Asset Conservative Strategy Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Conservative Strategy Fund 363
Six months ended 30 September 2018
(Unaudited) EUR ‘000
Six months ended 30 September 2017
(Unaudited) EUR ‘000
Income Net gain (loss) on investment activities ....................................................................... (32) 78 Total investment income (expense) ........................................................................... (32) 78 Expenses
Total operating expenses ........................................................................................... (57) (68) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (89) 10 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Multi-Asset Conservative Strategy Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 364 Russell Investments Multi-Asset Conservative Strategy Fund
Six months ended 30 September 2018
(Unaudited) EUR ‘000
Six months ended 30 September 2017
(Unaudited) EUR ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (89) 10 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (542) (114)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ......................................................................................... (631) (104) Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 7,490 8,129 End of financial period ............................................................................................. 6,859 8,025
Russell Investment Company plc Russell Investments Multi-Asset Conservative Strategy Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Conservative Strategy Fund 365
Number of Shares
Fair Value EUR ‘000
Fund %
Investment Funds (98.15%) France (7.38%)
7 H2O AM - H2O Adagio ...... 506 7.38
Ireland (81.57%)
133
Multi-Style Multi-Manager Funds plc The Eurozone Aggressive Equity Fund - Class B Shares ..................... 238 3.47
73
OpenWorld plc Russell Investments Global Listed Infrastructure - Class I USD Shares .................................. 159 2.32
588
Russell Investment Company II plc Russell Investments Emerging Market Debt Local Currency Fund - Class B Shares .............................. 509 7.42
344
Russell Investment Company II plc Russell Investments Global Bond (Euro Hedged) Fund - Class B Shares ......... 692 10.09
155
Russell Investment Company II plc Russell Investments Pan European Equity Fund - Class B Shares ..................... 232 3.38
765
Russell Investment Company III plc Russell Investments Euro Liquidity Fund - Class R Roll-Up Shares ................ 757 11.04
543
Russell Investment Company plc Russell Global Credit Fund - Class EH-C Shares ... 567 8.27
Number of Shares
Fair Value EUR ‘000
Fund %
522
Russell Investment Company plc Russell Investments Emerging Markets Equity Fund - Class A Shares ......... 192 2.80
281
Russell Investment Company plc Russell Investments Global High Yield Fund - Class A Roll-Up Shares ...... 365 5.32
424
Russell Investment Company plc Russell Investments Unconstrained Bond Fund - Class K-H Shares ................ 427 6.22
5,758
Russell Investment Company plc Russell Investments World Equity Fund II - Class EH-T Shares ....................... 957 13.95
4,883 Salar Fund plc Class I Shares 500 7.29 5,595 81.57 Luxembourg (9.20%)
4,247
BlueBay Global Convertible Bond Fund .......................... 410 5.98
4,789
Credit Suisse Lux Commodity Index Plus USD 221 3.22
631 9.20 Total Investment Funds .... 6,732 98.15
Total Investments excluding Financial Derivative Instruments ..... 6,732 98.15
Financial Derivative Instruments ((0.10)%) Open Futures Contracts ((0.04)%)
Notional Amount
EUR ‘000
Average Cost Price
EUR
Unrealised Gain (Loss) EUR ‘000
Fund %
128 12.75
1 of Topix Index Futures Long Futures Contracts Expiring December 2018 ............................... 10 0.15
195 97.57
2 of 5 Year U.S. Treasury Note Futures Long Futures Contracts Expiring December 2018 ............................... (1) (0.01)
310 103.45
3 of 10 Year U.S. Treasury Note Futures Long Futures Contracts Expiring December 2018 ............................... (4) (0.06)
254 126.75
20 of Sx5E Dividend Futures Long Futures Contracts Expiring December 2019 ............................... (8) (0.12)
Unrealised gain on open futures contracts ..................................................................... 10 0.15 Unrealised loss on open futures contracts ...................................................................... (13) (0.19) Net unrealised gain (loss) on open futures contracts ................................................ (3) (0.04)
Russell Investment Company plc Russell Investments Multi-Asset Conservative Strategy Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 366 Russell Investments Multi-Asset Conservative Strategy Fund
Open Forward Foreign Currency Exchange Contracts ((0.06)%)
Net unrealised gain (loss) on open forward foreign currency exchange contracts .. (4) (0.06) Total Financial Derivative Instruments ...................................................................... (7) (0.10)
Fair Value EUR ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (98.30%) ......................................................................... 6,742 98.30
Total Financial Liabilities at Fair Value through Profit or Loss ((0.25)%) ........................................................................ (17) (0.25)
Net Financial Assets at Fair Value Through Profit or Loss (98.05%) .................................................................................. 6,725 98.05 Other Net Assets (1.95%) ...................................................... 134 1.95 Net Assets ................................................................................ 6,859 100.00
100.00 The counterparty for the open futures contracts is Bank of America Merrill Lynch. The counterparties for the open forward foreign currency exchange contracts are:
Citibank Royal Bank of Canada
Russell Investment Company plc Russell Investments Multi-Asset Conservative Strategy Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Multi-Asset Conservative Strategy Fund 367
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
EUR ‘000 Level 2
EUR ‘000 Level 3
EUR ‘000 Total
EUR ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Investment funds ........................................................... - 6,732 - 6,732 Unrealised gain on open futures contracts .................... 10 - - 10
Total assets ......................................................................... 10 6,732 - 6,742 Liabilities Financial liabilities at fair value through profit or loss::
Unrealised loss on open futures contracts ........................ (13) - - (13) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (4) - (4)
Total liabilities ................................................................... (13) (4) - (17) As at 31 March 2018
Level 1
EUR ‘000 Level 2
EUR ‘000 Level 3
EUR ‘000 Total
EUR ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Investment funds ........................................................... - 7,385 - 7,385 Unrealised gain on open futures contracts .................... 4 - - 4
Total assets ......................................................................... 4 7,385 - 7,389 Liabilities Financial liabilities at fair value through profit or loss::
Unrealised loss on open futures contracts ........................ (4) - - (4) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (4) - (4)
Total liabilities ................................................................... (4) (4) - (8)
Russell Investment Company plc Russell Investments Multi-Asset Conservative Strategy Fund Statement of Changes in Composition of Portfolio Listed below are all cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 368 Russell Investments Multi-Asset Conservative Strategy Fund
Portfolio Securities Acquisition Cost
EUR ‘000 Portfolio Securities Disposal Proceeds
EUR ‘000 Russell Investment Company plc OpenWorld plc
Russell Global Credit Fund - Russell Investments U.S. Credit - Class EH-C Shares 719 Class P Shares (716)
Credit Suisse Lux Commodity Index Plus USD 1 FundLogic Alternatives Plc Salar Fund plc Class I Shares 1 MS Ascend UCITS Fund - BlueBay Global Convertible Bond Fund 1 Class I Shares (238)
Russell Investment Company plc Russell Global Credit Fund -
Class EH-C Shares (140) Russell Investment Company II plc
Russell Investments Global Bond (Euro Hedged) Fund - Class B Shares (137) Russell Investment Company plc Russell Investments Unconstrained Bond Fund -
Class K-H Shares (68) Russell Investment Company II plc Russell Investments Emerging Market
Debt Local Currency Fund - Class B Shares (68)
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Market Debt Fund 369
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 52,426 62,359 Cash at bank (Note 2) .................................................................................................. 1,102 1,002 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ........................................................................................................................ 204 448 Debtors:
Receivable for investments sold .............................................................................. - 36 Interest receivable .................................................................................................... 694 846
54,426 64,691 Liabilities Financial liabilities at fair value through profit or loss ................................................ (399) (566) Creditors – amounts falling due within one financial year:
(1,148) (951) Net asset value attributable to redeemable participating shareholders ................ 53,278 63,740
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 370 Russell Investments Emerging Market Debt Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Interest income ......................................................................................................... 941 3,033
Net gain (loss) on investment activities ....................................................................... (9,627) 3,787 Total investment income (expense) ........................................................................... (8,686) 6,820 Expenses
Total operating expenses ........................................................................................... (321) (517) Net income (expense) .................................................................................................. (9,007) 6,303 Finance costs
Distributions (Note 7) ............................................................................................... (1,106) (1,305) Profit (loss) for the financial period before taxation ............................................... (10,113) 4,998 Taxation
Withholding tax (Note 8) ......................................................................................... (3) (2) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ....................................................................
(10,116) 4,996
All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Market Debt Fund 371
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (10,116) 4,996 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (346) (3,629)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ......................................................................................... (10,462) 1,367 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 63,740 80,906 End of financial period ............................................................................................. 53,278 82,273
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 372 Russell Investments Emerging Market Debt Fund
Principal Amount
Fair Value USD ‘000
Fund %
Transferable Securities (86.04%) Long Term Bonds and Notes (82.28%) Argentina (6.55%)
Argentine Republic Government International Bond
USD 1,264,000 7.500% due 22/04/26 ....... 1,129 2.12 500,000 6.875% due 26/01/27 ....... 426 0.80 500,000 5.875% due 11/01/28 ....... 397 0.74
EUR 275,221 7.820% due 31/12/33 ....... 303 0.57 19,800,000 Zero Coupon due 15/12/35 962 1.81 500,000 Zero Coupon due 15/12/35 24 0.04
YPF SA USD 250,000 8.750% due 04/04/24 ....... 250 0.47
Iraq International Bond 500,000 5.800% due 15/01/28 ....... 475 0.89 Ireland (2.51%)
Russian Railways Via RZD Capital Plc
RUB 25,000,000 7.900% due 19/10/24 ....... 362 0.68
Vnesheconombank Via VEB Finance Plc
USD 1,000,000 6.025% due 05/07/22 ....... 973 1.83 1,335 2.51 Israel (0.62%)
Israel Electric Corp Ltd 300,000 6.875% due 21/06/23 ....... 330 0.62 Jordan (0.44%)
Jordan Government International Bond
250,000 7.375% due 10/10/47 ....... 236 0.44 Kazakhstan (1.36%)
KazMunayGas National Co JSC
750,000 6.000% due 07/11/44 ....... 727 1.36 Lebanon (0.74%)
Lebanon Government International Bond
150,000 8.250% due 12/04/21 ....... 141 0.26 300,000 6.000% due 27/01/23 ....... 255 0.48 396 0.74 Luxembourg (0.58%)
Gazprom OAO Via Gaz Capital SA
250,000 8.625% due 28/04/34 ....... 310 0.58 Malaysia (0.18%)
Malaysia Government Bond MYR 400,000 3.654% due 31/10/19 ....... 97 0.18
Principal Amount
Fair Value USD ‘000
Fund %
Mexico (9.57%) Mexican Bonos
MXN 2,500,000 5.000% due 11/12/19 ...... 129 0.24 10,000,000 10.000% due 05/12/24 .... 593 1.11 Petroleos Mexicanos
EUR 750,000 5.500% due 24/02/25 ...... 985 1.85 USD 750,000 6.875% due 04/08/26 ...... 793 1.49
1,000,000 6.625% due 15/06/38 ...... 965 1.81 125,000 6.500% due 02/06/41 ...... 118 0.22
USD 1,000,000 5.500% due 27/06/44 ...... 849 1.60 500,000 5.625% due 23/01/46 ...... 426 0.80 250,000 6.750% due 21/09/47 ...... 239 0.45 5,097 9.57 Mozambique (1.22%)
Mozambique International Bond
772,000 10.500% due 18/01/23 .... 649 1.22 Netherlands (2.67%)
Petrobras Global Finance BV
500,000 8.750% due 23/05/26 ...... 549 1.03 700,000 5.625% due 20/05/43 ...... 570 1.07 350,000 6.850% due 05/06/2115 .. 301 0.57 1,420 2.67 Nigeria (0.45%)
Nigeria Government International Bond
250,000 6.500% due 28/11/27 ...... 241 0.45 Oman (0.73%)
Oman Government International Bond
200,000 4.750% due 15/06/26 ...... 190 0.36 200,000 5.625% due 17/01/28 ...... 197 0.37 387 0.73 Pakistan (1.24%)
Pakistan Government International Bond
700,000 7.875% due 31/03/36 ...... 662 1.24 Philippines (0.56%)
Philippine Government International Bond
200,000 9.500% due 02/02/30 ...... 297 0.56
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 374 Russell Investments Emerging Market Debt Fund
Principal Amount
Fair Value USD ‘000
Fund %
Poland (2.15%)
Republic of Poland Government Bond
PLN 2,200,000 1.500% due 25/04/20 ....... 598 1.12 2,000,000 2.000% due 25/04/21 ....... 546 1.03 1,144 2.15 Serbia & Montenegro (1.02%)
Serbia International Bond USD 500,000 7.250% due 28/09/21 ....... 545 1.02
South Africa (2.16%) Eskom Holdings SOC Ltd 600,000 6.750% due 06/08/23 ....... 578 1.09 500,000 7.125% due 11/02/25 ....... 482 0.90
Republic of South Africa Government Bond
ZAR 1,200,000 10.500% due 21/12/26 ..... 92 0.17 1,152 2.16 Sri Lanka (0.93%)
Sri Lanka Government International Bond
USD 500,000 5.875% due 25/07/22 ....... 493 0.93 Turkey (9.74%)
Akbank Turk AS 300,000 6.797% due 27/04/28 ....... 237 0.45
Export Credit Bank of Turkey
200,000 5.375% due 08/02/21 ....... 189 0.36
Turkey Government International Bond
200,000 4.875% due 09/10/26 ....... 172 0.32 650,000 6.000% due 25/03/27 ....... 593 1.11 400,000 5.125% due 17/02/28 ....... 341 0.64 200,000 11.875% due 15/01/30 ..... 262 0.49 900,000 6.750% due 30/05/40 ....... 807 1.52 2,500,000 6.625% due 17/02/45 ....... 2,179 4.09
Yapi ve Kredi Bankasi AS 500,000 5.500% due 06/12/22 ....... 407 0.76 5,187 9.74 Ukraine (3.28%)
Ukraine Government International Bond
3,296,000 Zero Coupon due 31/05/40 1,747 3.28
Principal Amount
Fair Value USD ‘000
Fund %
United Kingdom (3.15%)
State Savings Bank of Ukraine Via SSB #1 Plc
200,000 9.398% due 19/01/24 ...... 197 0.37 100,000 9.625% due 20/03/25 ...... 101 0.19
Ukreximbank Via Biz Finance Plc
600,000 9.522% due 09/02/23 ...... 573 1.08 800,000 9.750% due 22/01/25 ...... 807 1.51 1,678 3.15 Venezuela (9.51%) Petroleos de Venezuela SA 1,300,000 12.750% due 17/02/22 .... 319 0.60 5,500,000 6.000% due 16/05/24 ...... 1,230 2.31 1,000,000 6.000% due 15/11/26 ...... 219 0.41 500,000 6.000% due 15/11/26 ...... 109 0.20 1,000,000 5.375% due 12/04/27 ...... 222 0.42 2,500,000 9.750% due 17/05/35 ...... 600 1.13 1,000,000 5.500% due 12/04/37 ...... 225 0.42
Venezuela Government International Bond
750,000 7.750% due 13/10/19 ...... 200 0.38 2,300,000 12.750% due 23/08/22 .... 636 1.19 3,200,000 11.750% due 21/10/26 .... 891 1.67 1,500,000 11.950% due 05/08/31 .... 416 0.78 5,067 9.51
Total Long Term Bonds and Notes ........................... 43,838 82.28
Short Term Investments (3.21%) Croatia (0.37%) Agrokor dd
EUR 600,000 9.875% due 01/05/19 ...... 197 0.37 Luxembourg (0.94%)
Sistema JSFC Via Sistema International Funding SA ....
USD 500,000 6.950% due 17/05/19 ...... 500 0.94 Turkey (1.64%) Turkiye Halk Bankasi AS ... 400,000 4.750% due 04/06/19 ...... 374 0.70 Turkiye Is Bankasi AS ........ 500,000 3.750% due 10/10/18 ...... 499 0.94 873 1.64
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Market Debt Fund 375
Principal Amount
Fair Value USD ‘000
Fund %
United Kingdom (0.07%)
Privatbank CJSC Via UK SPV Credit Finance Plc
160,000 10.250% due 23/01/18 ..... 39 0.07 Venezuela (0.19%)
Venezuela Government International Bond
400,000 7.000% due 01/12/18 ....... 99 0.19
Total Short Term Investments ........................ 1,708 3.21
Number of Shares Common Stock (0.55%) Canada (0.55%) Oil and Gas
20,718 Frontera Energy Corp ...... 293 0.55 Total Common Stock ........ 293 0.55
Total Transferable Securities ............................ 45,839 86.04
Principal Amount
Fair Value USD ‘000
Fund %
Money Market Instruments (7.49%) United States (7.49%) United States Treasury Bill
USD 2,000,000 Zero Coupon due 08/11/18 1,996 3.75 2,000,000 Zero Coupon due 15/11/18 1,995 3.74
Total Money Market Instruments ....................... 3,991 7.49
Number of Shares Investment Funds (3.68%) Ireland (3.68%)
1,902
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 1,960 3.68
Total Investment Funds .... 1,960 3.68
Total Investments excluding Financial Derivative Instruments ..... 51,790 97.21
Financial Derivative Instruments (0.44%) Open Futures Contracts (0.02%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
(4,121)
(1.18)
28 of Euro FX Currency Futures Short Futures Contracts Expiring December 2018 ................................. 33 0.06
1,697
113.11
15 of U.S. 5 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (9) (0.02)
1,385
0.05
53 of Mexican Peso Futures Long Futures Contracts Expiring December 2018 ................................. 14 0.03
2,153
119.58
18 of U.S. 10 Year Note Futures Long Futures Contracts Expiring December 2018 ................................. (15) (0.03)
425
141.67
3 of U.S. Long Bond Futures Long Futures Contracts Expiring December 2018 ................................. (4) (0.01)
314
156.88
2 of U.S. Ultra Bond Futures Long Futures Contracts Expiring December 2018 ................................. (5) (0.01)
Unrealised gain on open futures contracts ...................................................................... 47 0.09 Unrealised loss on open futures contracts ....................................................................... (33) (0.07) Net unrealised gain (loss) on open futures contracts ................................................. 14 0.02
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 376 Russell Investments Emerging Market Debt Fund
Open Forward Foreign Currency Exchange Contracts (0.34%)
Unrealised gain on open forward foreign currency exchange contracts ............................... 186 0.35 Unrealised loss on open forward foreign currency exchange contracts ................................ (3) (0.01) Net unrealised gain (loss) on open forward foreign currency exchange contracts ....... 183 0.34
Credit default swaps at positive fair value ..................................................................... 403 0.75 Credit default swaps at negative fair value .................................................................... (363) (0.67) Credit default swaps at fair value .............................................................................. 40 0.08 Total Financial Derivative Instruments ..................................................................... 237 0.44
# In the event of bankruptcy or, the fund will pay/receive the notional amount to/from the counterparty.
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (98.40%) ......................................................................... 52,426 98.40
Total Financial Liabilities at Fair Value through Profit or Loss ((0.75) %) ........................................................................ (399) (0.75)
Net Financial Assets at Fair Value through Profit or Loss (97.65%) .................................................................................. 52,027 97.65
Other Net Assets (2.35%) ...................................................... 1,251 2.35 Net Assets ................................................................................ 53,278 100.00
Analysis of total assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing or traded on a regulated market ........................................................................................................................... 86.19 Transferable securities dealt in on another regulated market .......................................................................... 4.51 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) ................................ 0.86 Investment funds (UCITS) ............................................................................................................................. 3.60 Exchange traded financial derivative instruments .......................................................................................... 0.09 Over the counter financial derivative instruments .......................................................................................... 1.08 Other assets ..................................................................................................................................................... 3.67
100.00
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investments Emerging Market Debt Fund 377
The counterparties for the open futures contracts are:
Bank of America Merrill Lynch Societe Generale The counterparties for the open forward foreign currency exchange contracts are:
Bank of Montreal Royal Bank of Canada Canadian Imperial Bank of Commerce State Street Bank and Trust Company Commonwealth Bank of Australia Westpac
The counterparty for the credit default swaps is BNP Paribas. Fair Value Hierarchy (Note 11) The following table analyses within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Transferable securities .................................................. 288 45,315 236 45,839 Investment funds ........................................................... - 1,960 1,960 Money market instruments ........................................... - 3,991 3,991 Unrealised gains on open futures contracts .................. 47 - - 47 Unrealised gain on open forward foreign currency exchange contracts ........................................................ - 186 - 186 Credit default swaps at fair value ................................. - 403 - 403
Total assets ......................................................................... 335 51,855 236 52,426 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (33) - - (33) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (3) - (3) Credit default swaps at fair value ..................................... - (363) - (363)
Total liabilities ................................................................... (33) (366) - (399)
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 378 Russell Investments Emerging Market Debt Fund
As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Transferable securities .................................................. 289 53,494 - 53,783 Investment funds ........................................................... - 1,742 - 1,742 Money market instruments ........................................... - 5,485 - 5,485 Unrealised gains on open futures contracts .................. 152 - - 152 Unrealised gain on open forward foreign currency exchange contracts ........................................................ - 1,015 - 1,015 Credit default swaps at fair value ................................. - 182 - 182
Total assets ......................................................................... 441 61,918 - 62,359 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (18) - - (18) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (192) - (192) Credit default swaps at fair value ..................................... - (356) - (356)
Total liabilities ................................................................... (18) (548) - (566)
Russell Investment Company plc Russell Investments Emerging Market Debt Fund Statement of Changes in Composition of Portfolio Listed below are the total cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Russell Investments Emerging Market Debt Fund 379
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 17,995 Class R Roll-Up Shares (17,804)
U.S. Treasury Bills U.S. Treasury Bill Zero Coupon due 08/11/18 1,982 Zero Coupon due 31/05/18 (1,496) Zero Coupon due 15/11/18 1,981 Gazprom OAO Via Gaz Capital SA
Turkey Government International Bond 6.510% due 07/03/22 (1,063) 6.750% due 30/05/40 578 Hungary Government International Bond
Sinochem Overseas Capital Comp Ltd 7.630% due 29/03/41 (685) 4.500% due 12/11/20 510 Sinochem Overseas Capital Comp Ltd
Eskom Holdings SOC Ltd 4.500% due 12/11/20 (508) 7.125% due 11/02/25 485 Yapi ve Kredi Bankasi AS
Ecuador Government International Bond 5.250% due 03/12/18 (499) 7.875% due 23/01/28 364 Turkey Government International Bond
Yapi ve Kredi Bankasi AS 6.625% due 17/02/45 (477) 5.500% due 06/12/22 306 China Government International Bond
Turkiye Halk Bankasi AS 2.630% due 02/11/27 (476) 4.750% due 04/06/19 297 Mongolia Government International Bond
Lebanon Government International Bond 10.880% due 06/04/21 (391) 6.000% due 27/01/23 273 Mozambique International Bond
Turkey Government International Bond 10.500% due 18/01/23 (338) 11.875% due 15/01/30 269 Ukraine Government International Bond
Nigeria Government International Bond Zero Coupon due 31/05/40 (335) 6.500% due 28/11/27 234 Turkiye Is Bankasi AS
Jordan Government International Bond 3.750% due 10/10/18 (298) 7.375% due 10/10/47 230 Egypt Government International Bond
Oman Government International Bond 6.875% due 30/04/40 (281) 5.625% due 17/01/28 193 Petrobras Global Finance BV
Akbank Turk AS 5.625% due 20/05/43 (248) 6.797% due 27/04/28 178 Vietnam Government International Bond
Export Credit Bank of Turkey 6.750% due 29/01/20 (209) 5.375% due 08/02/21 174 Corp Nacional del Cobre de Chile
Turkey Government International Bond 4.500% due 16/09/25 (203) 6.625% due 17/02/45 174 Sistema JSFC Via Sistema International Funding SA
Argentine Republic Government International Bond 6.950% due 17/05/19 (201) Zero Coupon due 15/12/35 22 Turkey Government International Bond
6.750% due 30/05/40 (197) Turkiye Halk Bankasi AS 4.750% due 04/06/19 (190)
Russell Investment Company plc Old Mutual African Frontiers Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 380 Old Mutual African Frontiers Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss .................................................... 250,245 269,836 Cash at bank (Note 2) ................................................................................................ 13,810 7,184 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ...................................................................................................................... 2,302 2,480 Debtors:
Receivable for investments sold ............................................................................. 2,656 90 Dividends receivable .............................................................................................. 326 1,086
269,339 280,676 Liabilities Financial liabilities at fair value through profit or loss .............................................. (26) (206) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) .................................................................................................................. (2,135) (2,480) Payable for investments purchased ........................................................................ (3,382) (786) Distributions payable on hybrid accumulation share classes .................................. - (562) Management fees payable ...................................................................................... (221) (122) Depositary fees payable .......................................................................................... (16) (8) Sub-custodian fees payable .................................................................................... (187) (78) Administration fees payable ................................................................................... (14) (9) Audit fees payable .................................................................................................. (7) (14)
(5,988) (4,265)
Net assets attributable to redeemable participating shareholders ....................... 263,351 276,411
Russell Investment Company plc Old Mutual African Frontiers Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual African Frontiers Fund 381
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends ............................................................................................................... 7,892 3,825 Interest income ....................................................................................................... 2,237 411
10,129 4,236
Net gain (loss) on investment activities ..................................................................... (31,188) 17,110
Total investment income (expense) ......................................................................... (21,059) 21,346
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................. (22,739) 20,550 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual African Frontiers Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 382 Old Mutual African Frontiers Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................. (22,739) 20,550 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ..................................................................................... 9,679 85,348
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ...................................................................................... (13,060) 105,898 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................. 276,411 95,671
End of financial period ........................................................................................... 263,351 201,569
Russell Investment Company plc Old Mutual African Frontiers Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual African Frontiers Fund 383
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (84.23%) Common Stock (84.23%) Botswana (3.77%) Banks
19,903,789
First National Bank of Botswana Ltd ...................... 4,355 1.65
18,990,736 Stanbic IBTC Holdings Plc . 2,396 0.91 288,421,635 United Bank for Africa Plc . 6,644 2.52 234,088,521 Zenith Bank Plc .................. 13,803 5.24 Beverages
1,923,870 Guinness Nigeria Plc .......... 422 0.16 Building Products
EGP 57,650,000 Zero Coupon due 19/02/19 3,006 1.14 52,000,000 Zero Coupon due 09/04/19 2,632 1.00 40,900,000 Zero Coupon due 07/05/19 2,051 0.78 7,689 2.92 Nigeria (6.98%)
NGN Nigeria Treasury Bills 652,000,000 Zero Coupon due 01/11/18 1,768 0.67
1,147,500,000 Zero Coupon due 15/11/18 3,095 1.18 480,000,000 Zero Coupon due 29/11/18 1,289 0.49 818,000,000 Zero Coupon due 06/12/18 2,191 0.83 829,000,000 Zero Coupon due 13/12/18 2,194 0.83 533,000,000 Zero Coupon due 03/01/19 1,414 0.54 492,000,000 Zero Coupon due 10/01/19 1,302 0.49 469,000,000 Zero Coupon due 17/01/19 1,238 0.47
1,486,000,000 Zero Coupon due 07/02/19 3,894 1.48 18,385 6.98
Total Money Market Instruments ....................... 26,074 9.90
Total Investments excluding Financial Derivative Instruments ..... 247,884 94.13
Russell Investment Company plc Old Mutual African Frontiers Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Unrealised gain on open forward foreign currency exchange contracts ............................... 2,361 0.89 Unrealised loss on open forward foreign currency exchange contracts ................................ (26) (0.01) Net unrealised gain (loss) on open forward foreign currency exchange contracts ....... 2,335 0.88 Total Financial Derivative Instruments ............................................................................ 2,335 0.88
Fair Value USD '000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (95.02%) .......................................................................................... 250,245 95.02
Total Financial Liabilities at Fair Value through Profit or Loss ((0.01)%) ......................................................................................... (26) (0.01)
Net Financial Assets at Fair Value through Profit or Loss (95.01%) .......................................................................................... 250,219 95.01
Other Net Assets (4.99%) .............................................................. 13,132 4.99 Net Assets ........................................................................................ 263,351 100.00
Abbreviation used: GDR - Global Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing ............. 92.03 Over the counter financial derivative instrument ............................................................................................... 0.88 Other assets ........................................................................................................................................................ 7.09
100.00
Russell Investment Company plc Old Mutual African Frontiers Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 386 Old Mutual African Frontiers Fund
The counterparties for the open forward foreign currency exchange contracts are:
Bank of America Merrill Lynch Standard Chartered Bank Citibank
Fair Value Hierarchy (Note 11) The following table analyses within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 2,361 - 2,361
Total assets ......................................................................... 221,810 28,435 - 250,245 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (26) - (26)
Total liabilities ................................................................... - (26) - (26) As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 2,762 - 2,762
Total assets ......................................................................... 233,387 34,989 1,460 269,836 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (206) - (206)
Total liabilities ................................................................... - (206) - (206)
Russell Investment Company plc Old Mutual African Frontiers Fund Statement of Changes in Composition of Portfolio Listed below are cumulative investment purchases and cumulative investment sales in excess of 1% of total investment purchases or sales respectively during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual African Frontiers Fund 387
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Randgold Resources Ltd 8,500 Centamin Plc (6,097) Commercial International Bank Egypt Commercial International Bank Egypt SAE (4,634) SAE GDR (UK listed) 6,817 Safaricom Plc (4,145) Zenith Bank Plc 6,597 Nestle Nigeria Plc (2,819) Guaranty Trust Bank Plc 5,129 Commercial International Bank Egypt Integrated Diagnostics Holdings Plc 5,015 SAE GDR (UK listed) (2,770) Housing & Development Bank 4,309 East African Breweries Ltd (2,480) Nigeria Treasury Bill Access Bank Plc (2,291)
Zero Coupon due 02/07/19 3,890 Nigeria Treasury Bills Obour Land For Food Industries 3,442 Zero Coupon due 02/08/18 (2,218) Credit Agricole Egypt SAE 3,200 Zero Coupon due 09/08/18 (2,213) Egypt Treasury Bill MCB Group Ltd (2,208)
Zero Coupon due 19/02/18 2,863 Guinness Nigeria Plc (2,081) United Bank for Africa Plc 2,561 Talaat Moustafa Group (2,036) Egypt Treasury Bill Egypt Kuwait Holding Co SAE (1,904)
Zero Coupon due 09/04/19 2,544 Randgold Resources Ltd (1,850) Arabian Food Industries Co 2,506 TransGlobe Energy Corp (1,462) Stanbic IBTC Holdings Plc 2,447 Attijariwafa Bank (1,353) Nigeria Treasury Bills Sonatel SA (950)
Zero Coupon due 13/12/18 2,210 Juhayna Food Industries (827) Zero Coupon due 06/12/18 2,082 CI Capital Holding Co SAE (776)
Egypt Treasury Bills Eastern Tobacco (537) Zero Coupon due 07/05/19 2,016 Nation Media Group Plc (514)
Nigeria Treasury Bill Societe Des Boissons du Maroc (472) Zero Coupon due 23/08/18 1,999
Tullow Oil Plc 1,524 Safaricom Plc 1,402 Nigeria Treasury Bill
Zero Coupon due 03/01/19 1,392 FBN Holdings Plc 1,357 Nigeria Treasury Bills
Zero Coupon due 10/01/19 1,294 Zero Coupon due 17/01/19 1,250 Zero Coupon due 29/11/18 1,212
Unilever Nigeria Plc 1,115 NASCON Allied Industries Plc 955 Cairo Investment & Real Estate Development Co SAE 952 Phoenix Beverages Ltd 950 Nigeria Treasury Bills
Zero Coupon due 15/11/18 869
Russell Investment Company plc Old Mutual Value Global Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 388 Old Mutual Value Global Equity Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 260,981 253,973 Cash at bank (Note 2) .................................................................................................. 3,545 7,196 Debtors:
Receivable for investments sold ............................................................................... 1,210 - Dividends receivable ................................................................................................ 609 714 266,345 261,883
Liabilities Creditors – amounts falling due within one financial year:
(1,567) (415) Net assets attributable to redeemable participating shareholders ........................ 264,778 261,468
Russell Investment Company plc Old Mutual Value Global Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Value Global Equity Fund 389
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends ................................................................................................................... 5,393 2,002 Securities lending income (Note 3) ........................................................................... 20 15
5,413 2,017 Net gain (loss) on investment activities ........................................................................ 10,564 29,015 Total investment income (expense) ............................................................................ 15,977 31,032 Expenses
Total operating expenses ............................................................................................ (729) (558) Profit (loss) for the financial period before taxation ................................................ 15,248 30,474 Taxation
Withholding tax (Note 8) ........................................................................................... (767) (493) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 14,481 29,981 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Value Global Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 390 Old Mutual Value Global Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 14,481 29,981 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................. (11,171) 205,272
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 3,310 235,253 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 261,468 127,074
End of financial period ............................................................................................. 264,778 362,327
Russell Investment Company plc Old Mutual Value Global Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Value Global Equity Fund 391
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (98.57%) Common Stock (98.57%) Austria (1.01%) Banks
64,523 Erste Group Bank AG ......... 2,681 1.01 Colombia (0.63%) Oil and Gas
62,337 Ecopetrol SA ADR .............. 1,679 0.63 Curacao (2.79%) Oil and Gas Services
121,178 Schlumberger Ltd ................ 7,382 2.79 Finland (1.16%) Electric Utilities
122,837 Fortum OYJ ......................... 3,080 1.16 France (4.28%) Chemicals
44,714 Air Liquide SA .................... 5,884 2.22 Pharmaceuticals
Pharmaceuticals 66,510 Cardinal Health Inc ............. 3,592 1.36 103,680 CVS Health Corp ................ 8,162 3.08 76,716 Express Scripts Holding Co 7,289 2.75
Real Estate Investment Trust 191,786 GEO Group Inc ................... 4,825 1.82
Retail Trade 22,446 Advance Auto Parts Inc ...... 3,778 1.43 27,179 Dollar General Corp ........... 2,971 1.12 44,005 Lowe's Cos Inc .................... 5,053 1.91
Savings and Loans
510,648
New York Community Bancorp Inc ......................... 5,295 2.00
Textile and Apparel 259,633 Hanesbrands Inc .................. 4,785 1.81
135,259 51.08 Total Common Stock ........ 260,981 98.57
Total Transferable Securities ........................... 260,981 98.57
Total Investments excluding Financial Derivative Instruments ..... 260,981 98.57
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (98.57%) ......................................................................... 260,981 98.57
Other Net Assets (1.43%) ...................................................... 3,797 1.43 Net Assets ................................................................................ 264,778 100.00
Abbreviation used: ADR - American Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing .............................................................. 98.02Other assets ....................................................................................................................................................... 1.98
100.00 Fair Value Hierarchy (Note 13 b)) All securities held as of 30 September 2018 and 31 March 2018 are classified as Level 1.
Russell Investment Company plc Old Mutual Value Global Equity Fund Statement of Changes in Composition of Portfolio Listed below are 20 largest cumulative investment purchases and cumulative investment sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual Value Global Equity Fund 393
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Schlumberger Ltd 5,705 Twenty-First Century Fox Inc (5,319) Dominion Energy Inc 5,485 DS Smith Plc (5,186) US Bancorp 5,401 BP Plc (4,440) Lowe's Cos Inc 4,012 CRH Plc (4,265) Berkshire Hathaway Inc 3,976 JPMorgan Chase & Co (4,081) Anthem Inc 3,923 KeyCorp (3,911) Fibra Uno Administracion SA de CV 2,959 Airbus SE (3,768) Enagas SA 2,753 Cisco Systems Inc (3,135) Jefferies Financial Group Inc 2,721 Koninklijke Philips NV (2,862) Dollar General Corp 2,665 Phillips 66 (2,780) Advance Auto Parts Inc 2,634 IHI Corp (2,670) Philip Morris International Inc 2,437 Enel SpA (1,917) State Street Corp 2,375 Fiat Chrysler Automobiles NV (1,779) Broadcom Inc 1,905 Banco de Sabadell SA (1,754) General Electric Co 1,582 Cielo SA (1,733) New York Community Bancorp Inc 1,565 Ecopetrol SA ADR (1,547) Nielsen Holdings Plc 1,538 Erste Group Bank AG (876) RPC Group Plc 1,500 Occidental Petroleum Corp (597) Absa Group Ltd 1,435 Schlumberger Ltd (303) Banco de Sabadell SA 638 CVS Health Corp (297)
Russell Investment Company plc Copper Rock Global All Cap Equity Fund Balance Sheet As at 31 March 2018
The accompanying notes are an integral part of the financial statements. 394 Copper Rock Global All Cap Equity Fund
31 March 2018* (Audited) USD ‘000
Assets Cash at bank (Note 2) ................................................................................................................................ 467 Debtors:
Receivable for investments sold ............................................................................................................. 1,364Dividends receivable .............................................................................................................................. 55
1,886Liabilities Creditors – amounts falling due within one financial year:
(1,886) Net assets attributable to redeemable participating shareholders ...................................................... - * As the Fund terminated on 30 June 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Copper Rock Global All Cap Equity Fund Profit and Loss Account For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements.
Copper Rock Global All Cap Equity Fund 395
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ............................................................................................................................................... 1,393 Securities lending income (Note 3) ........................................................................................................ 2
1,395 Net gain (loss) on investment activities .................................................................................................... 10,107 Total investment income (expense) ........................................................................................................ 11,502 Expenses
Management fees (Note 4) ..................................................................................................................... (127) Depositary fees (Note 5) ........................................................................................................................ (9) Sub-custodian fees (Note 5) ................................................................................................................... (10) Administration and transfer agency fees (Note 5) ................................................................................. (16) Audit fees ............................................................................................................................................... (7) Professional fees .................................................................................................................................... (7) Other fees ............................................................................................................................................... (112)
Total operating expenses ........................................................................................................................ (288) Profit (loss) for the financial period before taxation ............................................................................ 11,214 Taxation Withholding tax (Note 8) .......................................................................................................................... (234) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ....................................................................................................................... 10,980 All amounts arose solely from terminating operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account. * As the Fund terminated on 30 June 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Copper Rock Global All Cap Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2017
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 396 Copper Rock Global All Cap Equity Fund
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ....................................................................................................................... 10,980
Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ..................................................................................................................... (196,829)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders (185,849)
Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................................................ 185,849 End of financial period .......................................................................................................................... -
* As the Fund terminated on 30 June 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual Global REIT Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global REIT Fund 397
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ...................................................... 73,358 77,759 Cash at bank (Note 2) .................................................................................................. 444 617 Debtors:
Receivable for investments sold ............................................................................... 1,560 412 Dividends receivable ................................................................................................ 229 263 75,591 79,051
Liabilities Creditors – amounts falling due within one financial year:
(1,628) (523) Net assets attributable to redeemable participating shareholders ........................ 73,963 78,528
Russell Investment Company plc Old Mutual Global REIT Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 398 Old Mutual Global REIT Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends ................................................................................................................. 2,256 2,044 Securities lending income (Note 3) .......................................................................... 6 6
2,262 2,050 Net gain (loss) on investment activities ....................................................................... 2,659 3,397 Total investment income (expense) .......................................................................... 4,921 5,447 Expenses
Total operating expenses ........................................................................................... (182) (277) Profit (loss) for the financial period before taxation .............................................. 4,739 5,170 Taxation
Withholding tax (Note 8) ......................................................................................... (642) (412) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 4,097 4,758 All amounts arose solely from continuing activities. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Global REIT Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global REIT Fund 399
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 4,097 4,758 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (8,662) (31,683)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (4,565) (26,925) Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 78,528 128,347
End of financial period ............................................................................................. 73,963 101,422
Russell Investment Company plc Old Mutual Global REIT Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 400 Old Mutual Global REIT Fund
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (99.18%) Common Stock (99.18%) Australia (4.63%) Real Estate Investment Trust
126,210 Goodman Group .................. 946 1.28 123,507 GPT Group .......................... 466 0.63 114,681 Ingenia Communities Group 249 0.34 114,692 Mirvac Group ...................... 200 0.27 308,195 Scentre Grou ....................... 885 1.19 359,287 Vicinity Centres .................. 681 0.92
3,427 4.63 Belgium (0.94%) Real Estate Investment Trust
2,635 Cofinimmo SA .................... 329 0.44 2,781 Warehouses De Pauw CVA 366 0.50
695 0.94 Canada (2.81%) Real Estate
54,420 First Capital Realty Inc ....... 821 1.11 Real Estate Investment Trust
21,297
Allied Properties Real Estate Investment Trust .................. 710 0.96
60,210
InterRent Real Estate Investment Trust .................. 547 0.74
2,078 2.81 Cayman Islands (3.32%) Real Estate
179,130 CK Asset Holdings Ltd ....... 1,345 1.82
107,830 Wharf Real Estate Investment Co Ltd ............... 696 0.94
Retail Trade
209,451
Lifestyle International Holdings Ltd ....................... 411 0.56
2,452 3.32 France (3.71%) Real Estate Investment Trust
39,096 52.87 Total Common Stock ........ 73,358 99.18
Total Transferable Securities ........................... 73,358 99.18
Russell Investment Company plc Old Mutual Global REIT Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 402 Old Mutual Global REIT Fund
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.18%) .......................................................................... 73,358 99.18
Other Net Assets (0.82%) ....................................................... 605 0.82 Net Assets ................................................................................. 73,963 100.00
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ............................................................... 97.05 Other assets ........................................................................................................................................................ 2.95
100.00 Fair Value Hierarchy (Note 11) All securities held as of 30 September 2018 and 31 March 2018 are classified as Level 1.
Russell Investment Company plc Old Mutual Global REIT Fund Statement of Changes in Composition of Portfolio Listed below are cumulative investment purchases and cumulative investment sales in excess of 1% of total investment purchases or sales respectively during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual Global REIT Fund 403
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Digital Realty Trust Inc 2,350 Digital Realty Trust Inc (3,527) Equinix Inc 1,965 DCT Industrial Trust Inc (2,078) Host Hotels & Resorts Inc 1,922 National Retail Properties Inc (2,033) Prologis Inc 1,913 Camden Property Trust (1,847) Boston Properties Inc 1,792 Federal Realty Investment Trust (1,629) VICI Properties Inc 1,678 VICI Properties Inc (1,542) National Retail Properties Inc 1,453 Liberty Property Trust (1,429) CyrusOne Inc 1,440 CyrusOne Inc (1,398) Regency Centers Corp 1,402 Equinix Inc (1,377) Duke Realty Corp 1,338 Welltower Inc (1,374) InterXion Holding NV 1,233 Kilroy Realty Corp (1,272) Kilroy Realty Corp 1,200 InterXion Holding NV (1,268) HCP Inc 1,120 Vornado Realty Trust (1,198) Essex Property Trust Inc 1,120 Brandywine Realty Trust (1,150) Brandywine Realty Trust 1,092 Retail Properties of America Inc (1,053) Sino Land Co Ltd 1,055 Sun Hung Kai Properties Ltd (1,029) Sunstone Hotel Investors Inc 1,047 LaSalle Hotel Properties (1,023) Liberty Property Trust 924 Summit Hotel Properties Inc (1,010) LaSalle Hotel Properties 908 Icade (984) Cousins Properties Inc 869 Highwoods Properties Inc (978) Simon Property Group Inc 817 Sunstone Hotel Investors Inc (964) InterRent Real Estate Investment Trust 801 Prologis Inc (960) Education Realty Trust Inc 773 Store Capital Corp (958) Icade 767 Canadian Apartment Properties Real (942) Unibail-Rodamco SE 764 CoreSite Realty Corp (900) Macerich Co 759 Education Realty Trust Inc (887) Vicinity Centres 750 Sabra Health Care REIT Inc (858) Aroundtown SA 729 Activia Properties Inc (796) DCT Industrial Trust Inc 710 Sumitomo Realty & Development Co Ltd (720) Mitsui Fudosan Co Ltd 707 Westfield Corp (715) Hemfosa Fastigheter AB 700 Hang Lung Properties Ltd (694) Kimco Realty Corp 688 Orix JREIT Inc 687 Welltower Inc 683 CoreSite Realty Corp 672 Kenedix Residential Next Investment Corp 659 Hammerson Plc 644 Chesapeake Lodging Trust 618 Vonovia SE 615 Activia Properties Inc 608
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 404 Old Mutual Global Aggregate Bond Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ...................................................... 138,548 139,668 Cash at bank (Note 2) ................................................................................................... 2,990 4,907 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ......................................................................................................................... 420 263 Debtors:
Receivable for investments sold ............................................................................... - 1,546 Interest receivable ..................................................................................................... 1,029 1,095
142,987 147,479 Liabilities Financial liabilities at fair value through profit or loss ................................................. (634) (671) Creditors – amounts falling due within one financial year:
(1,003) (4,648) Net assets attributable to redeemable participating shareholders ......................... 141,984 142,831
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Aggregate Bond Fund 405
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Interest income .......................................................................................................... 1,547 1,320
Net gain (loss) on investment activities ........................................................................ (6,983) 5,064 Total investment income (expense) ............................................................................ (5,436) 6,384 Expenses
Total operating expenses ............................................................................................ (260) (273) Profit (loss) for the financial period before taxation ................................................ (5,696) 6,111 Taxation Withholding tax (Note 8) .............................................................................................. (2) (1) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (5,698) 6,110 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 406 Old Mutual Global Aggregate Bond Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (5,698) 6,110 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ 4,851 (2,118)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (847) 3,992 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 142,831 128,651
End of financial period ............................................................................................. 141,984 132,643
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Aggregate Bond Fund 407
Principal Amount
Fair Value USD ‘000
Fund %
Transferable Securities (94.51%) Long Term Bonds and Notes (92.01%) Australia (3.22%)
Commonwealth Bank of Australia
EUR 700,000 3.000% due 03/05/22 ....... 895 0.63 National Australia Bank Ltd USD 650,000 2.937% due 12/04/23 ....... 651 0.46
Denmark (0.49%) Denmark Government Bond DKK 4,140,000 1.500% due 15/11/23 ...... 697 0.49
Dominican Republic (0.41%)
Dominican Republic International Bond
USD 550,000 6.875% due 29/01/26 ...... 588 0.41 Egypt (0.21%)
Egypt Government International Bond
300,000 6.125% due 31/01/22 ...... 301 0.21 France (4.94%)
Air Liquide Finance SA 200,000 2.250% due 27/09/23 ...... 187 0.13
BNP Paribas SA EUR 500,000 1.125% due 11/06/26 ...... 556 0.39 BPCE SA USD 600,000 3.000% due 22/05/22 ...... 581 0.41 Dexia Credit Local SA GBP 1,000,000 0.875% due 07/09/21 ...... 1,283 0.90
Engie SA USD 190,000 2.875% due 10/10/22 ...... 184 0.13 EUR 500,000 2.375% due 19/05/26 ...... 635 0.45
French Republic Government Bond OAT
160,000 2.250% due 25/05/24 ...... 208 0.15 2,150,000 0.750% due 25/05/28 ...... 2,498 1.76 750,000 1.250% due 25/05/34 ...... 879 0.62 7,011 4.94 Germany (5.12%) Bundesrepublik Deutschland 1,800,000 3.250% due 04/01/20 ...... 2,195 1.55 230,000 0.250% due 15/02/27 ...... 266 0.19 850,000 4.750% due 04/07/40 ...... 1,740 1.22 1,950,000 2.500% due 15/08/46 ...... 3,062 2.16 7,263 5.12 Indonesia (1.08%)
Indonesia Government International Bond
USD 450,000 4.125% due 15/01/25 ...... 444 0.31 600,000 3.850% due 18/07/27 ...... 573 0.40
IDR Indonesia Treasury Bond 5,700,000,000 6.125% due 15/05/28 ...... 333 0.24
Perusahaan Listrik Negara PT
USD 200,000 4.125% due 15/05/27 ...... 188 0.13 1,538 1.08
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 408 Old Mutual Global Aggregate Bond Fund
Principal Amount
Fair Value USD ‘000
Fund %
Ireland (0.95%) Fastnet Securities 13 DAC EUR 868,394 Zero Coupon due 18/04/57 1,010 0.71 Ireland Government Bond
ABN AMRO Bank NV 600,000 2.881% due 27/08/21 ...... 602 0.42
EUR 200,000 2.875% due 30/06/25 ...... 242 0.17 USD 800,000 4.400% due 27/03/28 ...... 787 0.55 Cooperatieve Rabobank UA
250,000 2.765% due 26/04/21 ...... 251 0.18 innogy Finance BV EUR 650,000 1.000% due 13/04/25 ...... 748 0.53
Netherlands Government Bond
270,000 4.000% due 15/01/37 ...... 477 0.34 Vonovia Finance BV
600,000 0.750% due 15/01/24 ...... 683 0.48 3,790 2.67 Panama (0.95%)
Carnival Corp 1,100,000 1.875% due 07/11/22 ...... 1,342 0.95 Portugal (0.20%)
Portugal Obrigacoes do Tesouro OT
210,000 4.125% due 14/04/27 ...... 290 0.20 Romania (0.31%)
Romanian Government International Bond
350,000 2.875% due 28/10/24 ...... 447 0.31 Russia (0.14%)
Russian Foreign Bond - Eurobond
USD 200,000 4.750% due 27/05/26 ...... 200 0.14 Saudi Arabia (0.50%)
Saudi Government International Bond
750,000 3.625% due 04/03/28 ...... 717 0.50
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Aggregate Bond Fund 409
Principal Amount
Fair Value USD ‘000
Fund %
Spain (2.85%) Banco de Sabadell SA EUR 200,000 0.625% due 03/11/20 ....... 236 0.17 Banco Santander SA USD 600,000 3.500% due 11/04/22 ....... 588 0.41 Bankinter 10 FTA EUR 278,344 Zero Coupon due 21/06/43 320 0.23 Ibercaja Banco SA
600,000 0.250% due 18/10/23 ....... 688 0.48 Iberdrola Finanzas SA
700,000 1.000% due 07/03/25 ....... 814 0.57 Spain Government Bond 230,000 1.450% due 31/10/27 ....... 269 0.19 460,000 4.900% due 30/07/40 ....... 775 0.55 200,000 5.150% due 31/10/44 ....... 354 0.25 4,044 2.85 Sweden (2.54%)
Skandinaviska Enskilda Banken AB
500,000 0.300% due 17/02/22 ....... 582 0.41 300,000 0.500% due 13/03/23 ....... 349 0.24 850,000 1.375% due 31/10/28 ....... 976 0.69
Svenska Handelsbanken AB USD 1,000,000 1.950% due 08/09/20 ....... 974 0.69 Sweden Government Bond SEK 5,670,000 3.500% due 01/06/22 ....... 723 0.51
3,604 2.54 Switzerland (0.80%)
UBS Group Funding Switzerland AG
USD 800,000 3.000% due 15/04/21 ....... 788 0.56 EUR 300,000 1.250% due 01/09/26 ....... 342 0.24
1,130 0.80 United Kingdom (6.99%)
BP Capital Markets Plc USD 1,050,000 3.224% due 14/04/24 ....... 1,027 0.72 GlaxoSmithKline Capital Plc EUR 400,000 1.250% due 21/05/26 ....... 469 0.33
Gracechurch Card Funding Plc
GBP 350,000 1.224% due 15/07/21 ....... 457 0.32 HSBC Holdings Plc USD 600,000 2.650% due 05/01/22 ....... 583 0.41
United Kingdom Gilt GBP 2,450,000 5.000% due 07/03/25 ....... 3,930 2.77
760,000 4.250% due 07/06/32 ....... 1,296 0.91 1,310,000 3.250% due 22/01/44 ....... 2,156 1.53 9,918 6.99
Principal Amount
Fair Value USD ‘000
Fund %
United States (38.61%) ABB Finance USA Inc USD 700,000 2.800% due 03/04/20 ...... 697 0.49 AbbVie Inc
550,000 2.850% due 14/05/23 ...... 530 0.37
American Water Capital Corp
1,050,000 3.400% due 01/03/25 ...... 1,032 0.73 Apple Inc
850,000 2.850% due 11/05/24 ...... 825 0.58 Baltimore Gas & Electric Co
1,400,000 3.350% due 01/07/23 ...... 1,387 0.98 Bank of America Corp
700,000 3.508% due 20/01/23 ...... 712 0.50 BMW US Capital LLC 900,000 2.747% due 12/04/21 ...... 903 0.64 500,000 2.819% due 13/08/21 ...... 502 0.35
Burlington Northern Santa Fe LLC
600,000 3.900% due 01/08/46 ...... 571 0.40
Caterpillar Financial Services Corp
1,350,000 2.564% due 15/03/21 ...... 1,353 0.95 Charles Schwab Corp
700,000 2.632% due 21/05/21 ...... 702 0.49 Chase Issuance Trust
1,300,000 2.558% due 15/03/24 ...... 1,310 0.92 Chubb INA Holdings Inc EUR 550,000 1.550% due 15/03/28 ...... 637 0.45
Citigroup Inc USD 250,000 3.751% due 01/09/23 ...... 256 0.18 EUR 900,000 0.750% due 26/10/23 ...... 1,034 0.73 USD 350,000 8.125% due 15/07/39 ...... 507 0.36 Coca-Cola Co
700,000 1.875% due 27/10/20 ...... 685 0.48 CVS Health Corp
600,000 3.047% due 09/03/21 ...... 605 0.43
Discover Card Execution Note Trust
1,100,000 1.640% due 15/07/21 ...... 1,097 0.77 Duke Energy Indiana LLC
800,000 3.750% due 15/05/46 ...... 733 0.52 Florida Power & Light Co
763,000 2.750% due 01/06/23 ...... 742 0.52 General Dynamics Corp
650,000 3.375% due 15/05/23 ...... 650 0.46 Goldman Sachs Group Inc 800,000 3.342% due 24/07/23 ...... 809 0.57
EUR 400,000 1.250% due 01/05/25 ...... 459 0.32
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 410 Old Mutual Global Aggregate Bond Fund
1,250,000 4.646% due 15/07/45 ....... 1,275 0.90 Oracle Corp
1,450,000 2.950% due 15/11/24 ....... 1,402 0.99 PacifiCorp
700,000 4.125% due 15/01/49 ....... 689 0.49 Procter & Gamble Co
700,000 1.700% due 03/11/21 ....... 673 0.47 Roche Holdings Inc 700,000 2.875% due 29/09/21 ....... 694 0.49 1,300,000 1.750% due 28/01/22 ....... 1,236 0.87
Principal Amount
Fair Value USD ‘000
Fund %
Starbucks Corp 2,200,000 3.100% due 01/03/23 ...... 2,169 1.53 U.S. Treasury Bonds 930,000 4.500% due 15/02/36 ...... 1,104 0.78
USD 1,520,000 4.375% due 15/05/41 ...... 1,812 1.28 1,360,000 3.000% due 15/05/47 ...... 1,310 0.92
U.S. Treasury Notes 6,920,000 2.375% due 15/05/27* .... 6,571 4.63
Union Pacific 450,000 4.500% due 10/09/48 ...... 461 0.32
US Bank NA/Cincinnati OH 2,050,000 2.592% due 24/07/20 ...... 2,055 1.45
Warner Media LLC EUR 200,000 1.950% due 15/09/23 ...... 242 0.17 Verizon Owner Trust
1,000,000 1.680% due 20/05/21 ...... 993 0.71 54,810 38.61
Total Long Term Bonds and Notes ........................... 130,644 92.01
Short Term Investments (2.50%) Australia (2.50%) Westpac Banking Corp 3,000,000 2.125% due 09/07/19 ...... 3,550 2.50
Total Short Term Investments ........................ 3,550 2.50
Total Transferable Securities ........................... 134,194 94.51
Number of Shares Investment Funds (2.83%) Ireland (2.83%)
150,661
Rogge Funds Plc - Selective Global High Yield Bond Fund .................................... 4,010 2.83
Total Investment Funds .... 4,010 2.83
Total Investments excluding Financial Derivative Instruments ..... 138,204 97.34
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Aggregate Bond Fund 411
Financial Derivative Instruments ((0.20)%) Open Futures Contracts ((0.03)%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
637
70.83
9 of Australia 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (4) 0.00
(416)
(103.99)
4 of Canada 10 Year Bond Futures Short Futures Contracts Expiring December 2018 ................................. 6 0.00
(206)
(205.86)
1 of Euro BUXL 30 Year Bond Short Futures Contracts Expiring December 2018 ................................. 3 0.00
(10,394)
(152.85)
68 of Euro-Bobl Futures Short Futures Contracts Expiring December 2018 ................................. 71 0.05
(2,427)
(186.71)
13 of Euro-Bund Futures Short Futures Contracts Expiring December 2018 ................................. 29 0.02
3,970
1.32
3 of Japan 10 Year Bond Futures Long Futures Contracts Expiring December 2018 ................................. (5) 0.00
(5,586)
(159.60)
35 of U.K. Long Gilt Futures Short Futures Contracts Expiring December 2018 ................................. 66 0.05
11,511
119.90
96 of U.S. 10 Year Treasury Note Futures Short Futures Contracts Expiring December 2018 ................................. (107) (0.09)
2,113
105.66
10 of U.S. 2 Year Treasury Note Futures Long Futures Contracts Expiring December 2018 ................................. (6) 0.00
7,707
113.34
68 of U.S. 5 Year Treasury Note Futures Short Futures Contracts Expiring December 2018 ................................. (59) (0.04)
1,299
144.38
9 of U.S. Long Bond Futures Long Futures Contracts Expiring December 2018 ................................. (35) (0.02)
(159)
(158.87)
1 of U.S. Ultra Bond Futures Short Futures Contracts Expiring December 2018 ................................. 5 0.00
Unrealised gain on open futures contracts ..................................................................... 180 0.12 Unrealised loss on open futures contracts ...................................................................... (216) (0.15) Net unrealised gain (loss) on open futures contracts ................................................ (36) (0.03)
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 412 Old Mutual Global Aggregate Bond Fund
Open Forward Foreign Currency Exchange Contracts ((0.17)%)
Unrealised gain on open forward foreign currency exchange contracts ........................ 164 0.12 Unrealised loss on open forward foreign currency exchange contracts ......................... (418) (0.29) Net unrealised gain (loss) on open forward foreign currency exchange contracts . (254) (0.17) Total Financial Derivative Instruments ..................................................................... (290) (0.20)
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (97.58%) ......................................................................................... 138,548 97.58
Total Financial Liabilities at Fair Value through Profit or Loss ((0.44)%) ......................................................................................... (634) (0.44)
Net Financial Assets at Fair Value Through Profit or Loss (97.14%) ......................................................................................... 137,914 97.14
Other Net Assets (2.86%) .............................................................. 4,070 2.86 Net Assets ....................................................................................... 141,984 100.00
* Partly held as collateral by the brokers and counterparties in connection with collateral purposes for over the counter financial derivative instruments held by the Fund.
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Aggregate Bond Fund 413
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ............................................................... 79.26 Transferable securities dealt in on another regulated market ............................................................................. 7.25 Other transferable securities of the type referred to in Regulation 68(1)(a), (b) and (c) .................................... 6.86 Investment funds (UCITS) ................................................................................................................................. 3.16 Exchange traded financial derivative instruments ............................................................................................. 0.14 Over the counter financial derivative instruments ............................................................................................. 0.13 Other assets ........................................................................................................................................................ 3.20
100.00 The broker for the open futures contracts is Credit Suisse. The counterparties for the open forward foreign currency exchange contracts are:
Barclays Bank JPMorgan Citigroup Morgan Stanley Goldman Sachs UBS AG HSBC
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 180 - - 180 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 164 - 164
Total assets ......................................................................... 180 138,368 - 138,548 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (216) - - (216) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (418) - (418)
Total liabilities ................................................................... (216) (418) - (634)
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 414 Old Mutual Global Aggregate Bond Fund
As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Unrealised gain on open futures contracts ........................ 211 - - 211 Unrealised gain on open forward foreign currency exchange contracts ........................................................... - 70 - 70
Total assets ......................................................................... 211 139,457 - 139,668 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (231) - - (231) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (440) - (440)
Total liabilities ................................................................... (231) (440) - (671)
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Statement of Changes in Composition of Portfolio Listed below are cumulative investment purchases and sales in excess of 1% of total investment purchase and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual Global Aggregate Bond Fund 415
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Japan Government Twenty Year Bond Bundesrepublik Deutschland
2.100% due 20/09/29 3,809 4.750% due 04/07/40 (3,370) Bundesrepublik Deutschland 0.250% due 15/02/27 (2,746)
2.500% due 15/08/46 3,138 Mexican Bonos French Republic Government Bond OAT 10.000% due 05/12/24 (1,444)
0.750% due 25/05/28 2,512 U.S. Treasury Bills U.S. Bank NA/Cincinnati OH Zero Coupon due 24/05/18 (1,299)
2.592% due 24/07/20 2,050 Italy Buoni Poliennali Del Tesoro JPMorgan Chase & Co 2.050% due 01/08/27 (1,031)
3.572% due 24/10/23 1,786 Bundesrepublik Deutschland Kuwait International Government Bond 4.750% due 04/07/34 (1,016)
3.500% due 20/03/27 1,320 Japan Government Thirty Year Bond Invitation Homes Inc 0.500% due 20/09/46 (771)
3.058% due 17/06/37 1,300 Russian Foreign Bond - Eurobond Bank of Montreal 4.250% due 23/06/27 (752)
2.797% due 13/04/21 1,200 Japan Government Twenty Year Bond Mexico Government International Bond 2.100% due 20/09/29 (716)
4.150% due 28/03/27 1,130 Argentine Republic Government International Bond Italy Buoni Poliennali Del Tesoro 5.625% due 26/01/22 (716)
2.050% due 01/08/27 1,116 Anheuser-Busch InBev Finance Inc BMW US Capital LLC 4.900% due 01/02/46 (671)
2.747% due 12/04/21 900 Branch Banking & Trust Co French Republic Government Bond OAT 3.800% due 30/10/26 (652)
1.250% due 25/05/34 884 Societe Generale SA Saudi Government International Bond 2.500% due 16/09/26 (489)
3.625% due 04/03/28 711 Glencore Finance Europe Ltd Charles Schwab Corp 1.750% due 17/03/25 (479)
2.632% due 21/05/21 700 Bundesrepublik Deutschland PacifiCorp 4.750% due 04/07/34 (467)
4.125% due 15/01/49 698 Intesa Sanpaolo SpA General Dynamics Corp 3.928% due 15/09/26 (447)
3.375% due 15/05/23 648 Northrop Grumman Corp ABN AMRO Bank NV 2.930% due 15/01/25 (430)
2.881% due 27/08/21 600 AT&T Inc BMW US Capital LLC 6.000% due 15/08/40 (423)
2.819% due 13/08/21 500 Brazilian Government International Bond GlaxoSmithKline Capital Plc 6.000% due 07/04/26 (408)
1.250% due 21/05/26 477 U.S. Treasury Bonds Union Pacific Corp 4.375% due 15/05/41 (371)
4.500% due 10/09/48 450 Imperial Brands Finance Plc U.S. Treasury Bonds 5.500% due 28/09/26 (254)
4.375% due 15/05/41 430 Malaysia Government Bond
4.181% due 15/07/24 391 Indonesia Treasury Bond
6.125% due 15/05/28 386
Russell Investment Company plc Old Mutual Global Currency Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 416 Old Mutual Global Currency Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 134,887 193,964 Cash at bank (Note 2) .................................................................................................. 5,359 573 Debtors:
Interest receivable .................................................................................................... 1,602 1,638 141,848 196,175 Liabilities Financial liabilities at fair value through profit or loss ................................................ (640) (559) Creditors – amounts falling due within one financial year:
(699) (651) Net assets attributable to redeemable participating shareholders ........................ 141,149 195,524
Russell Investment Company plc Old Mutual Global Currency Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Currency Fund 417
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Interest income ......................................................................................................... 507 189
Net gain (loss) on investment activities ....................................................................... (7,253) 10,496 Total investment income (expense) .......................................................................... (6,746) 10,685 Expenses
Total operating expenses ........................................................................................... (273) (240) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations at dealing Net asset value ....................... (7,019) 10,445 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Global Currency Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 418 Old Mutual Global Currency Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (7,019) 10,445 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (47,356) 26,220
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (54,375) 36,665 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 195,524 103,574
End of financial period ............................................................................................. 141,149 140,239
Russell Investment Company plc Old Mutual Global Currency Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Currency Fund 419
Principal Amount
Fair Value USD ‘000
Fund %
Transferable Securities (72.58%) Short Term Investments (72.58%) Australia (2.65%)
Commonwealth Bank of Australia
USD 3,750,000 2.250% due 13/03/19 ....... 3,746 2.65 Austria (1.53%)
European Investment Bank 2,850,000 1.750% due 17/06/19 ...... 2,833 2.01 Netherlands (8.05%)
BMW Finance NV GBP 1,715,000 3.375% due 14/12/18 ...... 2,246 1.59 innogy Finance BV EUR 850,000 6.625% due 31/01/19 ...... 1,010 0.72
Nederlandse Waterschapsbank NV
USD 3,900,000 1.875% due 13/03/19 ...... 3,888 2.75
Repsol International Finance BV
EUR 1,700,000 4.875% due 19/02/19 ...... 2,013 1.43
Volkswagen International Finance NV
1,879,000 3.250% due 21/01/19 ...... 2,205 1.56 11,362 8.05 New Zealand (2.88%)
ANZ New Zealand Int'l Ltd 3,500,000 1.500% due 02/10/18 ...... 4,065 2.88 Spain (2.65%)
Bankia SA 1,700,000 3.500% due 17/01/19 ...... 1,995 1.41
Programa Cedulas TDA Fondo de Titulizacion de Activos
1,500,000 4.000% due 23/10/18 ...... 1,747 1.24 3,742 2.65 Sweden (0.67%)
Svenska Handelsbanken AB USD 950,000 2.500% due 25/01/19 ...... 950 0.67
Switzerland (3.46%)
Credit Suisse AG EUR 4,200,000 2.875% due 18/10/18 ...... 4,885 3.46
Russell Investment Company plc Old Mutual Global Currency Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 420 Old Mutual Global Currency Fund
Principal Amount
Fair Value USD ‘000
Fund %
United Kingdom (9.14%) BP Capital Markets Plc GBP 1,750,000 4.325% due 10/12/18 ....... 2,295 1.63 EUR 1,400,000 2.994% due 18/02/19 ....... 1,646 1.16 Compass Group Plc
1,690,000 3.125% due 13/02/19 ....... 1,987 1.41 HSBC Bank Plc
750,000 3.875% due 24/10/18 ....... 873 0.62 HSBC Holdings Plc
1,000,000 6.000% due 10/06/19 ....... 1,209 0.86 Lloyds Bank Plc
700,000 1.875% due 10/10/18 ....... 814 0.58 Santander UK Plc
1,500,000 2.000% due 14/01/19 ....... 1,753 1.24 Southern Gas Networks Plc GBP 1,050,000 5.125% due 02/11/18 ....... 1,374 0.97 Standard Chartered Plc EUR 800,000 4.125% due 18/01/19 ....... 941 0.67
12,892 9.14 United States (9.00%)
Amgen Inc 1,850,000 4.375% due 05/12/18 ....... 2,166 1.53
Principal Amount
Fair Value USD ‘000
Fund %
Ford Motor Credit Co LLC USD 1,400,000 2.375% due 12/03/19 ...... 1,396 0.99 Goldman Sachs Group Inc EUR 1,800,000 0.380% due 29/04/19 ...... 2,098 1.49 Morgan Stanley USD 2,700,000 7.300% due 13/05/19 ...... 2,772 1.96 Wachovia Corp EUR 3,650,000 4.375% due 27/11/18 ...... 4,270 3.03
12,702 9.00
Total Short Term Investments ........................ 102,445 72.58
Total Transferable Securities ........................... 102,445 72.58
Money Market Instruments (22.79%) United States (22.79%) U.S. Treasury Bill
USD 17,700,000 Zero Coupon due 28/03/19* 17,499 12.40 15,000,000 Zero Coupon due 15/08/19 14,672 10.39
Total Money Market Instruments ....................... 32,171 22.79
Total Investments excluding Financial Derivative Instruments ..... 134,616 95.37
Unrealised gain on open forward foreign currency exchange contracts ........................ 271 0.19 Unrealised loss on open forward foreign currency exchange contracts ......................... (640) (0.45) Net unrealised gain (loss) on open forward foreign currency exchange contracts.. (369) (0.26) Total Financial Derivative Instruments ..................................................................... (369) (0.26)
Russell Investment Company plc Old Mutual Global Currency Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Currency Fund 421
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (95.56%) ........................................................................ 134,887 95.56
Total Financial Liabilities at Fair Value through Profit or Loss ((0.45)%) ........................................................................ (640) (0.45)
Net Financial Assets at Fair Value through Profit or Loss (95.11%) ................................................................................. 134,247 95.11
Other Net Assets (4.89%) ..................................................... 6,902 4.89 Net assets ................................................................................ 141,149 100.00
* Partly held as collateral by the brokers and counterparties in connection with collateral purposes for over the counter financial derivative instruments held by the Fund.
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing or traded on a regulated market ........................................................................................................................... 94.04 Transferable securities dealt in on another regulated market .......................................................................... 0.86 Over the counter financial derivative instruments .......................................................................................... 0.19 Other assets ..................................................................................................................................................... 4.91
100.00 The counterparties for the open forward foreign currency exchange contracts are:
Barclays Bank Plc HSBC Canadian Imperial Bank of Commerce JPMorgan Citigroup Morgan Stanley Goldman Sachs
Fair Value Hierarchy (Note 11) All securities held as of 30 September 2018 and 31 March 2018 are classified as Level 2.
Russell Investment Company plc Old Mutual Global Currency Fund Statement of Changes in Composition of Portfolio Listed below are total investment purchases and total investment sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 422 Old Mutual Global Currency Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 U.S. Treasury Bills U.S. Treasury Bill
Zero Coupon due 28/03/19 17,349 Zero Coupon due 13/09/18 (17,925) Zero Coupon due 15/08/19 14,659 Dexia Credit Local SA
Japan Government Two Year Bond 0.200% due 31/07/18 (4,054) 0.100% due 15/09/19 11,935 Belfius Bank SA
U.S. Treasury Bill 2.250% due 26/09/18 (2,563) Zero Coupon due 13/09/18 7,964 NRW Bank
FMS Wertmanagement 1.250% due 22/10/18 (1,513) Zero Coupon due 15/04/19 5,600 FADE - Fondo de Amortizacion
Nederlandse Waterschapsbank NV del Deficit Electrico 1.875% due 13/03/19 3,883 5.600% due 17/09/18 (1,290)
Royal Bank of Canada Bank of America Corp 2.150% due 15/03/19 3,787 4.625% due 14/09/18 (1,227)
Bank of Montreal Airbus Group Finance BV 1.000% due 07/05/19 3,772 5.500% due 25/09/18 (1,127)
Commonwealth Bank of Australia Instituto de Credito Oficial 2.250% due 13/03/19 3,741 0.100% due 12/09/18 (1,043)
Nordea Bank Abp U.K. Treasury Bill 2.375% due 04/04/19 2,994 Zero Coupon due 23/04/18 (996)
European Investment Bank innogy Finance BV 1.750% due 17/06/19 2,829 5.125% due 23/07/18 (988)
Morgan Stanley Iberdrola International BV 7.300% due 13/05/19 2,808 4.250% due 11/10/18 (704)
Goldman Sachs Group Inc KBC IFIMA SA 0.380% due 29/04/19 2,125 2.125% due 10/09/18 (582)
Ford Motor Credit Co LLC 2.375% due 12/03/19 1,394
HSBC Holdings Plc 6.000% due 10/06/19 1,218
Oesterreichische Kontrollbank AG 1.625% due 12/03/19 993
Svenska Handelsbanken AB 2.500% due 25/01/19 950
Russell Investment Company plc Old Mutual MSCI Africa ex-South Africa Index Fund Balance Sheet As at 31 March 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual MSCI Africa ex-South Africa Index Fund 423
31 March 2018* (Audited) USD ‘000
Assets Cash at bank (Note 2) ................................................................................................................................ 617
Net assets attributable to redeemable participating shareholders ...................................................... - * As the Fund terminated on 9 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual MSCI Africa ex-South Africa Index Fund Profit and Loss Account For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements. 424 Old Mutual MSCI Africa ex-South Africa Index Fund
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ............................................................................................................................................... 1,933 Securities lending income (Note 3) ....................................................................................................... 1
1,934 Net gain (loss) on investment activities .................................................................................................... 10,483 Total investment income (expense) ........................................................................................................ 12,417 Expenses
Management fees (Note 4) .................................................................................................................... (90) Depositary fees (Note 5) ....................................................................................................................... (11) Sub-custodian fees (Note 5) .................................................................................................................. (180) Administration and transfer agency fees (Note 5) ................................................................................. (24) Audit fees .............................................................................................................................................. (6) Professional fees ................................................................................................................................... (7) Other fees .............................................................................................................................................. (114)
Total operating expenses ........................................................................................................................ (432) Profit (loss) for the financial period before taxation ............................................................................ 11,985 Taxation (Note 8)
Capital gains tax .................................................................................................................................... (2) Withholding tax .................................................................................................................................... (192)
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ....................................................................................................................... 11,791 All amounts arose solely from terminated operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account. * As the Fund terminated on 9 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual MSCI Africa ex-South Africa Index Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements.
Old Mutual MSCI Africa ex-South Africa Index Fund 425
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................................................. 11,791 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) .............................................................................................................................. (85,149)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ................................................................................................... (73,358) Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................................................ 80,226 End of financial period .......................................................................................................................... 6,868
* As the Fund terminated on 9 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 426 Old Mutual FTSE RAFI® All World Index Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ........................................................ 481,706 559,153 Cash at bank (Note 2) .................................................................................................... 558 578 Debtors:
Receivable for investments sold ................................................................................. 1,530 207 Dividends receivable .................................................................................................. 1,262 1,679
485,056 561,617 Liabilities Creditors – amounts falling due within one financial year:
(1,709) (3,341) Net assets attributable to redeemable participating shareholders .......................... 483,347 558,276
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual FTSE RAFI® All World Index Fund 427
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 10,382 8,008 Securities lending income (Note 3) ........................................................................... 50 65
10,432 8,073 Net gain (loss) on investment activities ........................................................................ 6,714 33,935 Total investment income (expense) ........................................................................... 17,146 42,008 Expenses
Total operating expenses ............................................................................................ (995) (838) Profit (loss) for the financial period before taxation ............................................... 16,151 41,170 Taxation (Note 8)
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 14,491 40,016 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 428 Old Mutual FTSE RAFI® All World Index Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................... 14,491 40,016 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) .................................................................................................. (89,420) 27,720
Total net increase (decrease) in net assets attributable to redeemable participating shareholders .......................................................................................... (74,929) 67,736 Net assets attributable to redeemable participating shareholders
Beginning of financial period ..................................................................................... 558,276 435,774 End of financial period ............................................................................................... 483,347 503,510
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual FTSE RAFI® All World Index Fund 429
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (99.41%) Common Stock (98.52%) Australia (2.26%) Airlines
Telecommunications 69,252 Nokia OYJ .......................... 384 0.08
1,801 0.37 France (4.31%) Advertising
2,985 Publicis Groupe SA ............ 178 0.04 Aerospace and Defence
1,738 Safran SA ............................ 244 0.05 1,022 Thales SA ........................... 145 0.03
Airlines 10,739 Air France-KLM ................. 112 0.02
Auto Components
3,187
Cie Generale des Etablissements Michelin SCA .................................... 381 0.08
3,597 Valeo SA ............................ 156 0.03 Automobiles
8,496 Peugeot SA ......................... 229 0.05 4,657 Renault SA .......................... 403 0.08
Banks 20,785 BNP Paribas SA .................. 1,273 0.26 20,054 Credit Agricole SA ............. 289 0.06 20,057 Natixis SA .......................... 136 0.03 22,723 Societe Generale SA ........... 976 0.20
Beverages 1,875 Pernod Ricard SA ............... 308 0.06
Building Products 11,924 Cie de Saint-Gobain ............ 514 0.11
Chemicals 3,462 Air Liquide SA ................... 456 0.10
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual FTSE RAFI® All World Index Fund 433
Number of Shares
Fair Value USD ‘000
Fund %
Computers and Peripherals 862 Atos SE ............................... 103 0.02 1,251 Capgemini SE ...................... 158 0.03
Construction and Engineering 4,610 Bouygues SA ....................... 199 0.04 2,126 Eiffage SA ........................... 237 0.05 6,605 Vinci SA .............................. 629 0.13
Distributors 13,085 Rexel SA ............................. 197 0.04
Electric Utilities 21,369 Electricite de France SA ...... 375 0.08 65,495 Engie SA ............................. 963 0.20
Electrical Equipment 2,881 Legrand SA ......................... 210 0.05 6,139 Schneider Electric SE .......... 494 0.10
Food Products 21,678 Carrefour SA ....................... 415 0.09
4,586
Casino Guichard Perrachon SA ....................................... 193 0.04
4,596 Danone SA .......................... 356 0.07 1,522 Sodexo SA ........................... 161 0.03
Health Care Equipment and Supplies
1,164
Essilor International Cie Generale d'Optique SA ........ 172 0.04
Insurance 38,043 AXA SA .............................. 1,023 0.21 6,677 CNP Assurances .................. 161 0.03 3,920 SCOR SE ............................. 182 0.04
Lodging 3,203 Accor SA ............................. 165 0.03
Media 7,083 Lagardere SCA .................... 218 0.04 21,721 Vivendi SA .......................... 559 0.12
Miscellaneous Manufacturers 3,120 Alstom SA ........................... 139 0.03
Oil and Gas 47,609 Total SA .............................. 3,088 0.64
Other Finance 2,029 Eurazeo SA ......................... 160 0.03
Personal Products 1,210 L'Oreal SA ........................... 292 0.06
Real Estate 2,670 Nexity SA ............................ 148 0.03
Real Estate Investment Trust 2,241 Klepierre SA ....................... 79 0.02 1,671 Unibail-Rodamco-Westfield 336 0.07
Telecommunications 50,380 Orange SA ........................... 804 0.17
Textile and Apparel 142 Hermes International ........... 94 0.02
Number of Shares
Fair Value USD ‘000
Fund %
501 Kering SA ........................... 269 0.05
1,196
LVMH Moet Hennessy Louis Vuitton SE ................ 423 0.09
Water Utilities 15,037 Suez .................................... 214 0.05 10,634 Veolia Environnement SA .. 212 0.04
20,818 4.31 Germany (3.62%) Airlines
4,927 Deutsche Lufthansa AG ...... 121 0.03 Auto Components
1,147 Continental AG ................... 200 0.04 Automobiles
6,594
Bayerische Motoren Werke AG ...................................... 595 0.12
19,851 Daimler AG ........................ 1,253 0.26 Banks
26,692 Commerzbank AG .............. 278 0.06 50,008 Deutsche Bank AG ............. 571 0.12
Building Products 2,842 HeidelbergCement AG ....... 222 0.05
Chemicals 13,411 BASF SE ............................ 1,192 0.24 3,246 Brenntag AG ....................... 200 0.04 11,081 K&S AG ............................. 233 0.05 2,502 Linde AG ............................ 517 0.11
Construction and Engineering 3,785 Bilfinger SE ........................ 191 0.04
Diversified Financials 2,197 Deutsche Boerse AG ........... 294 0.06
Electric Utilities 80,265 E.ON SE ............................. 819 0.17 25,139 RWE AG ............................ 620 0.13 10,397 Uniper SE ........................... 320 0.06
Electrical Equipment 2,800 Leoni AG ............................ 115 0.02 1,848 OSRAM Licht AG .............. 74 0.02
Food Products 8,931 METRO AG ....................... 140 0.03
Health Care Providers and Services
2,162
Fresenius Medical Care AG & Co KGaA ........................ 222 0.04
5,117 Fresenius SE & Co KGaA .. 376 0.08 Hotels, Restaurants and Leisure
11,065 TUI AG ............................... 213 0.04 Insurance
7,667 Allianz SE ........................... 1,710 0.35 1,267 Hannover Rueck SE ............ 179 0.04
3,813
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen ........................... 845 0.18
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 434 Old Mutual FTSE RAFI® All World Index Fund
Number of Shares
Fair Value USD ‘000
Fund %
Iron and Steel 2,564 Salzgitter AG ....................... 128 0.02 7,002 ThyssenKrupp AG .............. 177 0.04
Machinery 2,481 GEA Group AG ................... 88 0.02
Media 4,859 ProSiebenSat.1 Media SE .... 126 0.03
Metals and Mining 1,874 Aurubis AG ......................... 131 0.03
Miscellaneous Manufacturers 9,488 Siemens AG ........................ 1,216 0.25
Personal Products 590 Beiersdorf AG ..................... 67 0.01
Food Products 3,037 Aryzta AG ........................... 29 0.01 27,735 Nestle SA ............................ 2,323 0.48
Hand and Machine Tools 394 Schindler Holding AG ......... 96 0.02
Insurance 1,275 Baloise Holding AG ............ 195 0.04 4,247 Chubb Ltd ........................... 568 0.12 248 Helvetia Holding AG .......... 152 0.03 932 Swiss Life Holding AG ....... 355 0.07 8,025 Swiss Re AG ....................... 744 0.16 3,019 Zurich Insurance Group AG 959 0.20
Pioneer Natural Resources Co ....................................... 226 0.05
7,600 QEP Resources Inc ............. 86 0.02 4,600 SM Energy Co .................... 145 0.03 10,000 Valero Energy Corp ............ 1,138 0.24 3,550 Whiting Petroleum Corp ..... 188 0.04
Oil and Gas Services 1,300 Apergy Corp ....................... 57 0.01 4,000 Baker Hughes a GE Co ....... 135 0.03 8,600 Halliburton Co .................... 349 0.07 10,200 National Oilwell Varco Inc . 439 0.09 1,900 NOW Inc ............................ 31 0.01 6,500 Superior Energy Services Inc 63 0.01
Paper and Forest Products 2,800 Domtar Corp ....................... 146 0.03 7,300 International Paper Co ........ 359 0.07
Personal Products 20,900 Avon Products Inc .............. 46 0.01 5,900 Colgate-Palmolive Co ......... 395 0.08 1,800 Edgewell Personal Care Co 83 0.02 25,300 Procter & Gamble Co ......... 2,106 0.43
Pharmaceuticals 7,000 AbbVie Inc ......................... 662 0.14 4,200 AmerisourceBergen Corp ... 387 0.08 9,900 Bristol-Myers Squibb Co .... 615 0.13 8,100 Cardinal Health Inc ............. 437 0.09 17,800 CVS Health Corp ................ 1,401 0.29 7,100 Eli Lilly & Co ..................... 762 0.16 12,955 Express Scripts Holding Co 1,231 0.25 18,300 Johnson & Johnson ............. 2,529 0.52 6,400 McKesson Corp .................. 849 0.18 27,400 Merck & Co Inc .................. 1,944 0.40 5,100 Owens & Minor Inc ............ 84 0.02 58,100 Pfizer Inc ............................ 2,560 0.53
Pipelines 39,700 Kinder Morgan Inc ............. 704 0.15 3,900 ONEOK Inc ........................ 264 0.05 1,400 Targa Resources Corp ......... 79 0.02 14,400 Williams Cos Inc ................ 392 0.08
Real Estate 4,000 CBRE Group Inc ................. 176 0.03
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 450 Old Mutual FTSE RAFI® All World Index Fund
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 452 Old Mutual FTSE RAFI® All World Index Fund
Number of Shares
Fair Value USD ‘000
Fund %
Rights (0.00%) United States (0.00%)
USD 16,100 Community Health Systems Inc ....................................... - 0.00
Total Rights ....................... - 0.00
Total Transferable Securities ............................ 480,491 99.41
Investment Funds (0.25%) Ireland (0.25%)
33
Russell Investment Company III plc Russell Investments Sterling Liquidity Fund - Class R Roll-Up Shares ....... 43 0.01
Number of Shares
Fair Value USD ‘000
Fund %
1,138
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 1,172 0.24
1,215 0.25 Total Investment Funds .... 1,215 0.25 Total Investments ............... 481,706 99.66
Fair Value USD ‘000
Fund %
Net Financial Assets at Fair Value through Profit or Loss (99.66%) ................................................................................. 481,706
99.66
Other Net Assets (0.34%) ..................................................... 1,641 0.34 Net Assets ............................................................................... 483,347 100.00
Abbreviation used: ADR - American Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ............................................................... 99.06 Investment funds (UCITS) ................................................................................................................................. 0.25 Other assets ........................................................................................................................................................ 0.69
100.00
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual FTSE RAFI® All World Index Fund 453
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 557,138 2,015 - 559,153
Russell Investment Company plc Old Mutual FTSE RAFI® All World Index Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 454 Old Mutual FTSE RAFI® All World Index Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 78,189 Class R Roll-Up Shares (78,857)
Molson Coors Brewing Co 249 Apple Inc (1,158) Intercontinental Exchange Inc 248 Exxon Mobil Corp (1,111) Russell Investment Company III plc AT&T Inc (955)
Russell Investments Sterling Liquidity Fund Chevron Corp (923) Class R Roll-Up Shares 232 JPMorgan Chase & Co (851)
Devon Energy Corp 225 TOTAL SA (792) Chevron Corp 211 Microsoft Corp (717) Liberty Global Plc 210 Verizon Communications Inc (694) Valero Energy Corp 206 Citigroup Inc (683) Swiss Re AG 202 BP Plc (673) Johnson Controls International Plc 197 Bank of America Corp (654) Vornado Realty Trust 195 Royal Dutch Shell Plc (Shares A) (638) Nippon Telegraph & Telephone Corp 194 Wells Fargo & Co (618) JPMorgan Chase & Co 190 HSBC Holdings Plc (617) CRH Plc 185 General Electric Co (604) Leonardo SpA 184 Intel Corp (528) Pfizer Inc 182 Nestle SA (521) Bunge Ltd 180 Merck & Co Inc (510) Aspen Insurance Holdings Ltd 179 Procter & Gamble Co (505) Transocean Ltd (US listed) 179 Crown Holdings Inc 178
Russell Investment Company plc Old Mutual MSCI World ESG Index Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual MSCI World ESG Index Fund 455
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 428,105 411,220 Cash at bank (Note 2) .................................................................................................. 285 260 Debtors:
Receivable for investments sold .............................................................................. 450 438 Dividends receivable ............................................................................................... 736 894
429,576 412,812 Liabilities Creditors – amounts falling due within one financial year:
(593) (740) Net assets attributable to redeemable participating shareholders ........................ 428,983 412,072
Russell Investment Company plc Old Mutual MSCI World ESG Index Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 456 Old Mutual MSCI World ESG Index Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 5,786 5,136 Securities lending income (Note 3) ........................................................................... 38 31
5,824 5,167 Net gain (loss) on investment activities ........................................................................ 21,303 26,677 Total investment income (expense) ........................................................................... 27,127 31,844 Expenses
Total operating expenses ............................................................................................ (578) (508) Profit (loss) for the financial period before taxation ............................................... 26,549 31,336 Taxation
Withholding tax (Note 8) .......................................................................................... (1,032) (912) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 25,517 30,424 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual MSCI World ESG Index Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual MSCI World ESG Index Fund 457
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 25,517 30,424 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (8,606) 16,432
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 16,911 46,856 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................. 412,072 344,191
End of financial period ............................................................................................ 428,983 391,047
Russell Investment Company plc Old Mutual MSCI World ESG Index Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 458 Old Mutual MSCI World ESG Index Fund
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (99.63%) Common Stock (99.47%) Australia (3.30%) Banks
61,585
Australia & New Zealand Banking Group Ltd ............. 1,256 0.29
6,304
Bendigo & Adelaide Bank Ltd ....................................... 49 0.01
35,597
Commonwealth Bank of Australia .............................. 1,839 0.43
6,493 Macquarie Group Ltd .......... 592 0.14 56,345 National Australia Bank Ltd 1,134 0.27 68,596 Westpac Banking Corp ........ 1,386 0.32
Telecommunications 109,305 Nokia OYJ ........................... 606 0.14
1,858 0.43 France (3.70%) Advertising
792 JCDecaux SA ...................... 29 0.01 Auto Components
3,313
Cie Generale des Etablissements Michelin SCA ..................................... 396 0.09
Automobiles 3,478 Renault SA .......................... 301 0.07
Banks 20,997 Credit Agricole SA .............. 302 0.07 21,551 Natixis SA ........................... 146 0.03
Building Products 11,294 Cie de Saint-Gobain ............ 487 0.11 573 Imerys SA ........................... 42 0.01
Chemicals 9,297 Air Liquide SA .................... 1,223 0.29
Number of Shares
Fair Value USD ‘000
Fund %
Computers and Peripherals 1,593 Atos SE ............................... 190 0.04 2,386 Capgemini SE ..................... 300 0.07 1,132 Ingenico Group SA ............. 86 0.02
Construction and Engineering 6,260 Bouygues SA ...................... 271 0.07 1,249 Eiffage SA .......................... 140 0.03
Distributors 7,225 Rexel SA ............................. 109 0.03
Electrical Equipment 11,052 Schneider Electric SE ......... 890 0.21
Food Products 10,541 Carrefour SA ....................... 202 0.05
1,221
Casino Guichard Perrachon SA ....................................... 51 0.01
12,763 Danone SA .......................... 989 0.23 Health Care Equipment and Supplies
4,504
Essilor International Cie Generale d'Optique SA ....... 667 0.16
Household Products 350 Societe BIC SA ................... 32 0.01
Insurance 38,540 AXA SA ............................. 1,036 0.24 4,631 CNP Assurances ................. 112 0.03
Lodging 3,922 Accor SA ............................ 201 0.05
Media 20,734 Vivendi SA ......................... 534 0.12
Oil and Gas 49,743 Total SA .............................. 3,226 0.75
Other Finance 730 Eurazeo SE ......................... 58 0.01 595 Wendel SA .......................... 89 0.02
Personal Products 5,529 L'Oreal SA .......................... 1,334 0.31
Pharmaceuticals 607 Ipsen SA ............................. 102 0.02
Real Estate Investment Trust 652 Gecina SA ........................... 109 0.03
Gas Utilities 7,800 Osaka Gas Co Ltd ............... 152 0.04 1,200 Toho Gas Co Ltd ................. 46 0.01 7,000 Tokyo Gas Co Ltd ............... 172 0.04
Health Care Equipment and Supplies 4,600 Shimadzu Corp .................... 144 0.03 3,200 Sysmex Corp ....................... 276 0.07
Home Builders
13,600
Daiwa House Industry Co Ltd ....................................... 403 0.09
4,000 Sekisui Chemical Co Ltd ..... 74 0.02 11,200 Sekisui House Ltd ............... 171 0.04
Home Furnishings 44,900 Panasonic Corp .................... 523 0.12 3,900 Sharp Corp .......................... 79 0.02 25,000 Sony Corp ........................... 1,533 0.36
Hotels, Restaurants and Leisure 2,900 Yamaha Corp ...................... 154 0.04 7,000 Yamaha Motor Co Ltd ........ 196 0.04
Textile and Apparel 3,000 Asics Corp .......................... 45 0.01
Toys, Games and Hobbies 2,300 Nintendo Co Ltd ................. 840 0.20
Transport 2,800 Central Japan Railway Co ... 583 0.14 5,900 East Japan Railway Co ....... 548 0.13 2,200 Keio Corp ........................... 120 0.03
Russell Investment Company plc Old Mutual MSCI World ESG Index Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 464 Old Mutual MSCI World ESG Index Fund
Number of Shares
Fair Value USD ‘000
Fund %
4,000 Kyushu Railway Co ............ 122 0.03 1,800 Mitsui OSK Lines Ltd ......... 53 0.01 4,800 Nagoya Railroad Co Ltd ...... 119 0.03 1,700 Nippon Express Co Ltd ....... 112 0.03 2,600 Nippon Yusen KK ............... 49 0.01
2,500
Odakyu Electric Railway Co Ltd ....................................... 59 0.01
6,400 Tobu Railway Co Ltd .......... 189 0.04 12,500 Tokyu Corp ......................... 229 0.05 3,000 West Japan Railway Co ....... 209 0.05
35,299 8.23 Jersey, Channel Islands (0.30%) Auto Components
Banco Bilbao Vizcaya Argentaria SA ...................... 927 0.22
98,242 Banco de Sabadell SA ......... 153 0.04 10,561 Bankinter SA ....................... 97 0.02 66,627 CaixaBank SA ..................... 305 0.07
Construction and Engineering 10,999 Ferrovial SA ........................ 228 0.05
Electric Utilities 124,461 Iberdrola SA ........................ 916 0.21 10,293 Red Electrica Corp SA ........ 216 0.05
Gas Utilities 4,422 Enagas SA ........................... 119 0.03 6,708 Naturgy Energy Group SA .. 183 0.04
Oil and Gas 28,867 Repsol SA ........................... 576 0.13
Pharmaceuticals 4,715 Grifols SA ........................... 133 0.03
Retail Trade
24,395
Industria de Diseno Textil SA ....................................... 740 0.17
Number of Shares
Fair Value USD ‘000
Fund %
Software 9,439 Amadeus IT Group SA ....... 877 0.21
Telecommunications 94,614 Telefonica SA ..................... 749 0.18
6,219 1.45 Sweden (1.42%) Banks
61,089 Nordea Bank AB ................. 665 0.16
30,363
Skandinaviska Enskilda Banken AB ......................... 339 0.08
31,353 Svenska Handelsbanken AB 396 0.09 17,732 Swedbank AB ..................... 439 0.10
Construction and Engineering 6,826 Skanska AB ........................ 134 0.03
Electrical Equipment 20,672 Assa Abloy AB ................... 415 0.10
Food Products 815 ICA Gruppen AB ................ 26 0.01
Hand and Machine Tools 21,748 Sandvik AB ......................... 386 0.09
Machinery 13,603 Atlas Copco AB (A Shares) 392 0.09 10,832 Atlas Copco AB (B Shares) 289 0.07 5,844 Husqvarna AB .................... 50 0.01
Metals and Mining 5,724 Boliden AB ......................... 160 0.03 6,313 SKF AB .............................. 124 0.03
Other Finance 8,763 Investor AB ......................... 405 0.09 4,946 Kinnevik AB ....................... 150 0.04 3,881 L E Lundbergforetagen AB 131 0.03
Personal Products 13,290 Essity AB ............................ 334 0.08
Retail Trade 21,292 Hennes & Mauritz AB ........ 393 0.09
Telecommunications 7,621 Tele2 AB ............................ 92 0.02
60,439
Telefonaktiebolaget LM Ericsson .............................. 536 0.13
50,496 Telia Co AB ........................ 232 0.05 6,088 1.42 Switzerland (3.01%) Beverages
3,657 Coca-Cola HBC AG ........... 125 0.03 Building Products
Chocoladefabriken Lindt & Spruengli AG (ParticipatingCertificate) ..... 127 0.03
2 Chocoladefabriken Lindt & Spruengli AG ...................... 165 0.04
Health Care Equipment and Supplies 1,574 Lonza Group AG ................. 540 0.13 942 Sonova Holding AG ............ 188 0.04 197 Straumann Holding AG ....... 149 0.03
Insurance 9,486 Chubb Ltd ........................... 1,268 0.30 6,812 Swiss Re AG ....................... 632 0.15 3,268 Zurich Insurance Group AG 1,038 0.24
Expeditors International of Washington Inc ................... 243 0.06
1,900 Kansas City Southern .......... 215 0.05 5,700 Norfolk Southern Corp ........ 1,029 0.24 15,900 Union Pacific Corp .............. 2,589 0.60 14,200 United Parcel Service Inc .... 1,658 0.39
Water Utilities
3,400
American Water Works Co Inc ....................................... 299 0.07
248,832 58.00 Virgin Islands, British (0.05%) Textile and Apparel
3,200 Michael Kors Holdings Ltd . 219 0.05 Total Common Stock ........ 426,741 99.47 Preferred Stock (0.16%) Germany (0.16%) Automobiles
776
Bayerische Motoren Werke AG ....................................... 61 0.01
Number of Shares
Fair Value USD ‘000
Fund %
Electrical Equipment 800 Sartorius AG ....................... 130 0.03
Household Products 4,357 Henkel AG & Co KGaA ..... 511 0.12
702 0.16 Total Preferred Stock ....... 702 0.16
Total Transferable Securities ........................... 427,443 99.63
Investment Funds (0.16%) Ireland (0.16%)
22
Russell Investment Company III plc Russell Investments Sterling Liquidity Fund - Class R Roll-Up Shares ...... 29 0.01
615
Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ................ 633 0.15
Total Investment Funds .... 662 0.16
Total Investments excluding Financial Derivative Instruments ..... 428,105 99.79
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.79%) ........................................................................ 428,105 99.79
Other Net Assets (0.21%) ..................................................... 878 0.21 Net Assets ............................................................................... 428,983 100.00 Abbreviation used: SDR - Swedish Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ............................................................ 99.51 Investment funds (UCITS) .............................................................................................................................. 0.15 Other assets ..................................................................................................................................................... 0.34
100.00
Russell Investment Company plc Old Mutual MSCI World ESG Index Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 472 Old Mutual MSCI World ESG Index Fund
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 410,433 787 - 411,220
Russell Investment Company plc Old Mutual MSCI World ESG Index Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual MSCI World ESG Index Fund 473
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 34,216 Class R Roll-Up Shares (34,339)
Visa Inc 5,055 Novartis AG (3,446) AbbVie Inc 3,206 US Bancorp (1,699) Adobe Systems Inc 2,668 Anthem Inc (1,593) US Bancorp 1,667 Microsoft Corp (1,505) CSL Ltd 1,425 EOG Resources Inc (1,449) TJX Cos Inc 1,189 Vodafone Group Plc (1,445) Capital One Financial Corp 1,055 Automatic Data Processing Inc (1,170) Telefonica SA 961 Charter Communications Inc (1,036) Nintendo Co Ltd 950 Ford Motor Co (956) Microsoft Corp 948 Mitsubishi Corp (956) Compass Group Plc 736 Aflac Inc (879) SunTrust Banks Inc 711 Johnson & Johnson (732) Nokia OYJ 630 AT&T Inc (727) Recruit Holdings Co Ltd 609 Alphabet Inc (580) Johnson & Johnson 516 Cisco Systems Inc (575) Bridgestone Corp 485 Merck & Co Inc (541) Investor AB 474 Dr Pepper Snapple Group Inc (538) Huntington Bancshares Inc 429 McDonald's Corp (513) Omnicom Group Inc 427 Microchip Technology Inc (506)
Russell Investment Company plc Old Mutual Global Balanced Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 474 Old Mutual Global Balanced Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 131,910 135,687 Cash at bank (Note 2) .................................................................................................. 873 147 Debtors:
Receivable for investments sold .............................................................................. - 99 Dividends receivable ............................................................................................... 231 265
133,014 136,198 Liabilities Creditors – amounts falling due within one financial year:
(164) (136) Net assets attributable to redeemable participating shareholders ........................ 132,850 136,062
Russell Investment Company plc Old Mutual Global Balanced Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Balanced Fund 475
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 228 -
Net gain (loss) on investment activities ........................................................................ 3,296 3,818 Total investment income (expense) ........................................................................... 3,524 3,818 Expenses
Total operating expenses ............................................................................................ (103) (77) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 3,421 3,741 * The launched on 23 August 2017. All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Global Balanced Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 476 Old Mutual Global Balanced Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 3,421 3,741 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (6,633) 134,770
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (3,212) 138,511 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................. 136,062 -
End of financial period ............................................................................................ 132,850 138,511 * The launched on 23 August 2017.
Russell Investment Company plc Old Mutual Global Balanced Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares .............. 8,833 6.65
237,631
Russell Investment Company plc Acadian Emerging Market Equity UCITS – Class E USD Hybrid Shares ........... 2,476 1.86
2,201,131
Russell Investment Company plc Acadian Global Equity UCITS - Class B Hybrid Shares ................................ 25,929 19.52
643,394
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund - Class A Hybrid Shares ...... 6,447 4.85
Number of Shares
Fair Value USD ‘000
Fund %
1,265,589
Russell Investment Company plc Old Mutual Global Currency Fund - Class A Hybrid Shares ................... 13,124 9.88
7,686
Russell Investment Company plc Old Mutual Global Macro Equity Fund - Class E Hybrid Shares ................... 10,157 7.64
889,127
Russell Investment Company plc Old Mutual Growth Global Equity Fund - Class A Hybrid Shares ................... 10,314 7.76
1,307,640
Russell Investment Company plc Old Mutual Quality Global Equity Fund - Class A Hybrid Shares ................... 15,849 11.93
2,289,970
Russell Investment Company plc Old Mutual Value Global Equity Fund - Class A Hybrid Shares ................... 26,197 19.72
Total Investment Funds .... 131,871 99.26
Total Investments excluding Financial Derivative Instruments ..... 131,871 99.26
Financial Derivative Instruments (0.03%) Index Options Purchased (0.03%)
Notional Amount
USD ‘000 Fair Value USD ‘000
Fund %
Germany (0.03%) 3
Put at 2,050.00 MSCI World
Expiring December 2018 ............................................................. 39 0.03 Total index options purchased at fair value (Premium paid USD 171,360) ............. 39 0.03 Total Financial Derivative Instruments ..................................................................... 39 0.03
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.29%) ........................................................................ 131,910 99.29
Other Net Assets (0.71%) ..................................................... 940 0.71 Net Assets ............................................................................... 132,850 100.00
Russell Investment Company plc Old Mutual Global Balanced Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 478 Old Mutual Global Balanced Fund
Analysis of gross assets % of
gross assets Investment funds (UCITS) ......................................................................................................................... 99.14 Over the counter financial derivative instruments ...................................................................................... 0.03 Other assets ................................................................................................................................................ 0.83
100.00 The counterparty for the index options purchased is JP Morgan. Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Investment funds ........................................................... 12,545 119,326 - 131,871Index options purchased at fair value ........................... 39 - - 39
Total assets ......................................................................... 12,584 119,326 - 131,910 As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 11,492 124,195 - 135,687
Russell Investment Company plc Old Mutual Global Balanced Fund Statement of Changes in Composition of Portfolio Listed below are total cumulative investment purchases and investment sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual Global Balanced Fund 479
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 15,510 Class R Roll-Up Shares (8,218)
Russell Investment Company plc Russell Investment Company plc Acadian Emerging Market Equity UCITS Old Mutual Global Currency Fund Class E USD Hybrid Shares 1,368 Class A Hybrid Shares (5,333)
iShares III Plc Russell Investment Company plc Global Government Bond UCITS ETF Old Mutual Global REIT Fund USD Distribution Fund 1,360 Class A Hybrid Shares (3,458)
iShares II Plc Russell Investment Company plc USD TIPS 0-5 UCITS ETF 1,321 Acadian Global Equity UCITS Class B Hybrid Shares (3,368) Russell Investment Company plc Old Mutual Quality Global Equity Fund
Class A Hybrid Shares (2,972) Russell Investment Company plc Old Mutual Value Global Equity Fund Class A Hybrid Shares (1,674)
Russell Investment Company plc Old Mutual Growth Global Equity Fund Class A Hybrid Shares (942)
Russell Investment Company plc Old Mutual Global Macro Equity Fund Class E Hybrid Shares (938)
Russell Investment Company plc Old Mutual Emerging Market Local Currency Debt Fund Balance Sheet As at 31 March 2018
The accompanying notes are an integral part of the financial statements. 480 Old Mutual Emerging Market Local Currency Debt Fund
31 March 2018* (Audited) USD ‘000
Assets Cash at bank (Note 2) ............................................................................................................................... 184 184 Liabilities Creditors – amounts falling due within one financial year:
(184) Net assets attributable to redeemable participating shareholders ..................................................... - * As the Fund terminated on 24 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual Emerging Market Local Currency Debt Fund Profit and Loss Account For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements.
Old Mutual Emerging Market Local Currency Debt Fund 481
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Interest income ..................................................................................................................................... 3,335
Net gain (loss) on investment activities ................................................................................................... 4,117 Total investment income (expense) ....................................................................................................... 7,452 Expenses
Management fees (Note 4) ................................................................................................................... (176) Depositary fees (Note 5) ....................................................................................................................... (10) Sub-custodian fees (Note 5) ................................................................................................................. (50) Administration and transfer agency fees (Note 5) ................................................................................ (19) Audit fees ............................................................................................................................................. (9) Professional fees ................................................................................................................................... (1) Other fees ............................................................................................................................................. (12)
Total operating expenses ....................................................................................................................... (277) Profit (loss) for the financial period before taxation ........................................................................... 7,175 Taxation (Note 8)
Capital gains tax ................................................................................................................................... (7) Withholding tax .................................................................................................................................... (213)
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ...................................................................................................................... 6,955 * As the Fund terminated on 24 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Emerging Market Local Currency Debt Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements. 482 Old Mutual Emerging Market Local Currency Debt Fund
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ...................................................................................................................... 6,955 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................................... (1,157)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders 5,798 Net assets attributable to redeemable participating shareholders
Beginning of financial period ............................................................................................................... 98,018 End of financial period ......................................................................................................................... 103,816
* As the Fund terminated on 24 October 2017, final termination financial statements were prepared for the Fund for the year end 31 March
2018. The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual Global Defensive Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Defensive Fund 483
30 September 2018 (Unaudited)
USD ‘000
31 March 2018* (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ..................................................... 10,266 10,295 Cash at bank (Note 2) .................................................................................................. 103 118 Debtors:
Receivable for investments sold .............................................................................. - 7 Dividends receivable ............................................................................................... 17 22
10,386 10,442 Liabilities Creditors – amounts falling due within one financial year:
(21) (29) Net assets attributable to redeemable participating shareholders ........................ 10,365 10,413 * The Fund launched on 23 August 2017.
Russell Investment Company plc Old Mutual Global Defensive Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 484 Old Mutual Global Defensive Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 19 -
Net gain (loss) on investment activities ........................................................................ (46) 134 Total investment income (expense) ........................................................................... (27) 134 Expenses
Total operating expenses ............................................................................................ (21) (14) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... (48) 120 * The Fund launched on 23 August 2017. All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Global Defensive Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Defensive Fund 485
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (48) 120 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ - 10,039
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (48) 10,159 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................. 10,413 -
End of financial period ............................................................................................ 10,365 10,159 * The Fund launched on 23 August 2017.
Russell Investment Company plc Old Mutual Global Defensive Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 486 Old Mutual Global Defensive Fund
Principal Amount
Fair Value USD ‘000
Fund %
Investment Funds (99.04%) Ireland (99.04%)
6,525
iShares III Plc Global Goverment Bond UCITS ETF (UK listed) ................... 684 6.60
2,385
iShares III Plc Global Goverment Bond UCITS ETF (US listed) ................... 250 2.41
7,736
iShares III Plc J.P. Morgan EM Local Government Bond UCITS ETF ......................... 447 4.31
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares .............. 1,043 10.06
89,169
Russell Investment Company plc Acadian Global Equity UCITS Class B USD Hybrid Shares .................... 1,050 10.13
189,320
Russell Investment Company plc Old Mutual Global Aggregate Bond Fund Class A Hybrid Shares ...... 1,897 18.30
186,811
Russell Investment Company plc Old Mutual Global Currency Fund Class A Hybrid Shares .................... 1,937 18.69
Principal Amount
Fair Value USD ‘000
Fund %
255
Russell Investment Company plc Old Mutual Global Macro Equity Fund Class E Hybrid Shares ................... 337 3.25
15,948
Russell Investment Company plc Old Mutual Global REIT Fund Class A Hybrid Shares 210 2.03
36,277
Russell Investment Company plc Old Mutual Growth Global Equity Fund Class A Hybrid Shares ................... 421 4.06
51,970
Russell Investment Company plc Old Mutual Quality Global Equity Fund Class A Hybrid Shares ................... 630 6.08
93,122
Russell Investment Company plc Old Mutual Value Global Equity Fund Class A Hybrid Shares ................... 1,065 10.28
Total Investment Funds .... 10,266 99.04 10,266 99.04
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.04%) ........................................................................ 10,266 99.04
Other Net Assets (0.96%) ..................................................... 99 0.96 Net Assets ............................................................................... 10,365 100.00
Russell Investment Company plc Old Mutual Global Defensive Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Defensive Fund 487
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 1,405 8,890 - 10,295
Russell Investment Company plc Old Mutual Global Defensive Fund Statement of Changes in Composition of Portfolio Listed below are the total cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 488 Old Mutual Global Defensive Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 440 Class R Roll-Up Shares (599)
iShares III Plc Russell Investment Company plc Global Goverment Bond UCITS ETF (UK Listed) 208 Old Mutual Global REIT Fund
iShares III Plc Class A Hybrid Shares (102) Global Goverment Bond UCITS ETF (US Listed) 105 Russell Investment Company plc
iShares II Plc Old Mutual Quality Global Equity Fund USD TIPS 0-5 UCITS ETF 104 Class A Hybrid Shares (73)
Russell Investment Company plc Old Mutual Growth Global Equity Fund Class A Hybrid Shares (42) Russell Investment Company plc Acadian Global Equity UCITS Class B USD Hybrid Shares (31)
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Multi-Style Global Equity Fund 489
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ....................................................... 555,423 568,608
Cash at bank (Note 2) .................................................................................................... 2,427 8,952 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) .......................................................................................................................... 372 1,100
Debtors:
Receivable for investments sold ................................................................................. 1,777 492 Dividends receivable .................................................................................................. 1,062 1,448 Prepayments and other debtors .................................................................................. 98 18 561,159 580,618
Liabilities Financial liabilities at fair value through profit or loss .................................................. - (508) Creditors – amounts falling due within one financial year: Payable for investments purchased ................................................................................ (1,803) (849) Payable on fund shares redeemed .................................................................................. (3) - Distributions payable on hybrid accumulation share classes ......................................... - (193) Management fees payable .............................................................................................. (107) (138) Depositary fees payable ................................................................................................. (27) (18) Sub-custodian fees payable ............................................................................................ (17) (9) Administration fees payable .......................................................................................... (39) (31) Audit fees payable ......................................................................................................... (13) (25) Other fees payable ......................................................................................................... - (2) (2,009) (1,773) Net assets attributable to redeemable participating shareholders .......................... 559,150 578,845
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 490 Old Mutual Multi-Style Global Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends ....................................................................................................................... 7,024 6,198 Securities lending income (Note 3) ............................................................................... 33 53 7,057 6,251 Net gain (loss) on investment activities ......................................................................... 25,229 69,447 Total investment income (expense) ............................................................................ 32,286 75,698 Expenses Management fees (Note 4) ............................................................................................. (930) (1,161) Less: Management fees reimbursement (Note 4) .......................................................... 80 29 Depositary fees (Note 5) ................................................................................................ (55) (54) Sub-custodian fees (Note 5) ........................................................................................... (28) (29) Administration and transfer agency fees (Note 5) ......................................................... (112) (70) Audit fees ....................................................................................................................... (13) (14) Professional fees ............................................................................................................ (4) (13) Other fees ....................................................................................................................... (58) (34) Total operating expenses ............................................................................................. (1,120) (1,346) Profit (loss) for the financial period before taxation ................................................ 31,166 74,352 Taxation (Note 8) Capital gains tax ............................................................................................................ (18) (10) Withholding tax ............................................................................................................. (1,163) (950) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................... 29,985 73,392 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Multi-Style Global Equity Fund 491
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................... 29,985 73,392 Share transactions Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ...................................................................................................... (49,680) (18,768) Total net increase (decrease) in net assets attributable to redeemable participating shareholders .......................................................................................... (19,695) 54,624 Net assets attributable to redeemable participating shareholders Beginning of financial period ........................................................................................ 578,845 565,225 End of financial period .................................................................................................. 559,150 619,849
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 492 Old Mutual Multi-Style Global Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (86.86%) Common Stock (86.61%) Australia (0.87%) Airlines
Telecommunications 14,520 Nokia OYJ .......................... 81 0.02
3,874 0.69 France (2.16%) Advertising
260 JCDecaux SA ...................... 10 0.00 Auto Components
432
Cie Generale des Etablissements Michelin SCA .................................... 52 0.01
Automobiles 35,335 Peugeot SA ......................... 953 0.17 522 Renault SA .......................... 45 0.01
Banks 3,296 Credit Agricole SA ............. 47 0.01 2,783 Natixis SA .......................... 19 0.00
Beverages 4,066 Pernod Ricard SA ............... 667 0.12
Building Products 1,299 Cie de Saint-Gobain ............ 56 0.01 112 Imerys SA ........................... 8 0.00
Chemicals 30,439 Air Liquide SA ................... 4,006 0.72
Commercial Services and Supplies 22,192 Bureau Veritas SA .............. 573 0.10 204 GL Events ........................... 5 0.00
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Multi-Style Global Equity Fund 497
Number of Shares
Fair Value USD ‘000
Fund %
Computers and Peripherals 414 Atos SE ............................... 49 0.01 442 Capgemini SE ...................... 56 0.01 393 Cegedim SA ........................ 13 0.00 235 Ingenico Group SA .............. 18 0.01
Construction and Engineering 485 Bouygues SA ....................... 21 0.01 189 Eiffage SA ........................... 21 0.00
716
Gaztransport Et Technigaz SA ....................................... 54 0.01
Distributors 911 Rexel SA ............................. 14 0.00
Diversified Financials 326 Rothschild & Co .................. 14 0.00
Electrical Equipment 1,452 Schneider Electric SE .......... 117 0.02
Food Products 1,567 Carrefour SA ....................... 30 0.01
186
Casino Guichard Perrachon SA ....................................... 8 0.00
1,656 Danone SA .......................... 128 0.02 Health Care Equipment and Supplies
525
Essilor International Cie Generale d'Optique SA ........ 78 0.02
77 Sartorius Stedim Biotech ..... 11 0.00 Home Builders
771 AST Groupe SA .................. 10 0.00 967 Kaufman & Broad SA ......... 45 0.01
Household Products 100 Societe BIC SA ................... 9 0.00
Insurance 4,482 AXA SA .............................. 121 0.02 526 CNP Assurances .................. 13 0.00
Lodging 786 Accor SA ............................. 40 0.01
Machinery 229 Manitou BF SA ................... 8 0.00
Media 2,638 Vivendi SA .......................... 68 0.01
Oil and Gas 6,267 Total SA .............................. 406 0.07
Other Finance 121 Eurazeo SA ......................... 10 0.00 74 Wendel SA .......................... 11 0.00
Personal Products 631 L'Oreal SA ........................... 152 0.03
Kyosan Electric Manufacturing Co Ltd ......... 3 0.00
507
Murata Manufacturing Co Ltd ....................................... 78 0.02
128 Nihon Trim Co Ltd .............. 7 0.00 583 Nitto Kogyo Corp ................ 11 0.00 117 Odelic Co Ltd ...................... 4 0.00 492 Omron Corp ........................ 21 0.01 163 Sigma Koki Co Ltd ............. 3 0.00 303 Terasaki Electric Co Ltd ...... 3 0.00 633 Yokogawa Electric Corp ..... 13 0.00
Entertainment 661 Oriental Land Co Ltd .......... 69 0.02 310 Toho Co Ltd ........................ 10 0.00
Environmental Control 338 Kurita Water Industries Ltd . 10 0.00
Food Products 1,548 Aeon Co Ltd ........................ 37 0.01 1,323 Ajinomoto Co Inc ................ 23 0.01 380 Kikkoman Corp ................... 23 0.00 2,237 Seven & i Holdings Co Ltd . 100 0.02 253 Toyo Suisan Kaisha Ltd ...... 10 0.00 239 Yakult Honsha Co Ltd ......... 20 0.00
Gas Utilities 971 Osaka Gas Co Ltd ............... 19 0.00 422 Toho Gas Co Ltd ................. 16 0.00 1,112 Tokyo Gas Co Ltd ............... 27 0.01
Hand and Machine Tools 384 Noritake Co Ltd ................... 24 0.01
Number of Shares
Fair Value USD ‘000
Fund %
Health Care Equipment and Supplies 15,835 Olympus Corp ..................... 618 0.11 619 Shimadzu Corp ................... 19 0.00 633 Sysmex Corp ....................... 55 0.01
Home Builders
1,520
Daiwa House Industry Co Ltd ...................................... 45 0.01
1,212 Ichiken Co Ltd .................... 24 0.01 1,027 Sekisui Chemical Co Ltd .... 19 0.00 1,534 Sekisui House Ltd ............... 23 0.00 802 Token Corp ......................... 53 0.01
Home Furnishings 757 Corona Corp ....................... 8 0.00 466 Dainichi Co Ltd .................. 3 0.00
361
Janome Sewing Machine Co Ltd ...................................... 2 0.00
Internet Software and Services 11,539 CyberAgent Inc ................... 615 0.11 583 Internet Initiative Japan Inc 12 0.00 5,118 LINE Corp .......................... 216 0.04
Iron and Steel 1,083 Kobe Steel Ltd .................... 10 0.00
Machinery 901 Amada Holdings Co Ltd ..... 10 0.00
210
Daihatsu Diesel Manufacturing Co Ltd ........ 1 0.00
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 506 Old Mutual Multi-Style Global Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Paper and Forest Products 64,697 Sappi Ltd ............................. 406 0.07
Software 1,116 MiX Telematics Ltd ADR ... 16 0.01
3,573 0.64 Spain (0.87%) Airlines
4,104
International Consolidated Airlines Group SA ............... 35 0.01
Banks 1,669 Bankinter SA ....................... 15 0.00
15,375
Banco Bilbao Vizcaya Argentaria SA ...................... 98 0.02
1,169,484 Banco de Sabadell SA ......... 1,819 0.32 9,850 CaixaBank SA ..................... 45 0.01
Commercial Services and Supplies 431 Global Dominion Access SA 3 0.00
Construction and Engineering
9,168
ACS Actividades de Construccion y Servicios SA 391 0.07
1,290 Ferrovial SA ........................ 27 0.00 Electric Utilities
15,934 Iberdrola SA ........................ 117 0.02 1,269 Red Electrica Corp SA ........ 27 0.00
Food Products
20,987
Distribuidora Internacional de Alimentacion SA ............ 49 0.01
Gas Utilities 58,401 Enagas SA ........................... 1,577 0.28 1,062 Naturgy Energy Group SA .. 29 0.01
Oil and Gas 7,536 Repsol SA ........................... 150 0.03
Paper and Forest Products 8,534 Ence Energia y Celulosa SA 87 0.02 140 Iberpapel Gestion SA .......... 6 0.00
Personal Products 763 Naturhouse Health SAU ...... 3 0.00
Pharmaceuticals 719 Grifols SA ........................... 20 0.00
Real Estate Investment Trust
1,149
Lar Espana Real Estate Socimi SA ........................... 12 0.00
Retail Trade
3,326
Industria de Diseno Textil SA ....................................... 101 0.02
Software 1,153 Amadeus IT Group SA ........ 107 0.02
Telecommunications 12,489 Telefonica SA ...................... 99 0.02
Transport
2,299
Cia de Distribucion Integral Logista Holdings SA ........... 59 0.01
4,876 0.87
Number of Shares
Fair Value USD ‘000
Fund %
Sweden (0.73%) Agriculture
1,704 Swedish Match AB ............. 87 0.02 Auto Components
346 Haldex AB .......................... 3 0.00 Banks
7,851 Nordea Bank AB ................. 86 0.02
3,814
Skandinaviska Enskilda Banken AB ......................... 43 0.01
157,203 Svenska Handelsbanken AB 1,984 0.35 2,314 Swedbank AB ..................... 57 0.01
Chemicals 213 Nolato AB ........................... 13 0.00
Computers and Peripherals 434 Proact IT Group AB ............ 9 0.00
Construction and Engineering 5,217 Peab AB .............................. 48 0.01 889 Skanska AB ........................ 17 0.00
Diversified Financials 1,529 Catella AB .......................... 4 0.00
Electrical Equipment 3,265 Assa Abloy AB ................... 66 0.01
Entertainment 12,244 Betsson AB ......................... 94 0.02
Food Products 1,086 Axfood AB ......................... 20 0.01 277 ICA Gruppen AB ................ 9 0.00
Hand and Machine Tools 2,994 Sandvik AB ......................... 53 0.01
Health Care Equipment and Supplies 22,799 Arjo AB .............................. 77 0.01
Machinery 19,140 Atlas Copco AB (A Shares) 551 0.10 1,038 Atlas Copco AB (B Shares) 28 0.01 27,107 Epiroc AB (A Shares) ......... 303 0.05 14,795 Epiroc AB (B Shares) ......... 152 0.03 1,190 Husqvarna AB .................... 10 0.00
Metals and Mining 788 Boliden AB ......................... 22 0.00 2,915 Granges AB ........................ 35 0.01 1,004 Lindab International AB ..... 8 0.00 1,043 SKF AB .............................. 21 0.00
Other Finance 1,236 Investor AB ......................... 57 0.01 657 Kinnevik AB ....................... 20 0.00
Personal Products 1,732 Essity AB ............................ 44 0.01
Retail Trade 2,411 Hennes & Mauritz AB ........ 45 0.01
Telecommunications
9,268
Telefonaktiebolaget LM Ericsson .............................. 82 0.01
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Multi-Style Global Equity Fund 507
Number of Shares
Fair Value USD ‘000
Fund %
7,012 Telia Co AB ........................ 32 0.01 4,080 0.73 Switzerland (2.69%) Banks
Beverages 505 Coca-Cola HBC AG ............ 17 0.00
Building Products 3,766 Geberit AG .......................... 1,755 0.31 1,249 LafargeHolcim Ltd .............. 62 0.01 321 Sika AG ............................... 47 0.01
Chemicals 23 Givaudan SA ....................... 58 0.01
Commercial Services and Supplies 489 Adecco Group AG ............... 26 0.00 15 SGS SA ............................... 39 0.01
Diversified Financials 295 Bellevue Group AG ............. 8 0.00 367 Cembra Money Bank AG .... 33 0.01 779 Vontobel Holding AG ......... 55 0.01
Electrical Equipment 11 Carlo Gavazzi Holding AG . 3 0.00 338 Garmin Ltd .......................... 24 0.01 901 TE Connectivity Ltd ............ 79 0.01
Food Products
3
Chocoladefabriken Lindt & Spruengli AG (Non-Voting rights) .................................. 23 0.01
-
Chocoladefabriken Lindt & Spruengli AG (Voting rights) .................................. 23 0.00
29,914 Nestle SA ............................ 2,506 0.45 Hand and Machine Tools
15,945 Schindler Holding AG ......... 3,993 0.72 973 Tornos Holding AG ............. 10 0.00
Health Care Equipment and Supplies 204 Lonza Group AG ................. 70 0.01 142 Sonova Holding AG ............ 28 0.01 28 Straumann Holding AG ....... 21 0.00
Insurance 1,309 Chubb Ltd ........................... 175 0.03 26 Swiss Life Holding AG ....... 10 0.00 881 Swiss Re AG ....................... 82 0.02 401 Zurich Insurance Group AG 127 0.02
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Multi-Style Global Equity Fund 509
Number of Shares
Fair Value USD ‘000
Fund %
Media 1,040,010 ITV Plc ................................ 2,141 0.38 774 Liberty Global Plc (Series A) 22 0.00 1,337 Liberty Global Plc (Series C) 38 0.01 2,201 Pearson Plc .......................... 26 0.01 2,544 Sky Plc ................................ 57 0.01
Metals and Mining 29,634 BHP Billiton Plc .................. 646 0.12
Oil and Gas Services 1,196 Technip FMC Plc ................ 37 0.01
Other Finance 2,199 3i Group Plc ........................ 27 0.01 439 SVG Capital Plc .................. - 0.00
Paper and Forest Products 1,034 Mondi Plc ............................ 28 0.01
Personal Products 3,422 Unilever Plc ......................... 188 0.03
Spain (0.00%) 1 Repsol SA ........................... - 0.00
Total Rights ....................... - 0.00
Total Transferable Securities ........................... 485,691 86.86
Investment Funds (12.47%) Ireland (12.47%)
6,080
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 6,264 1.12
7,361
Russell Investment Company plc Old Mutual Global Emerging Opportunities Fund Class A Hybrid Shares 6,268 1.12
43,277
Russell Investment Company plc Old Mutual Global Macro Equity Fund - Class E Hybrid Shares ..................... 57,193 10.23
Total Investment Funds .... 69,725 12.47
Total Investments excluding Financial Derivative Instruments ..... 555,416 99.33
Financial Derivative Instruments (0.00%) Open Futures Contracts (0.00%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
992
1,044.03
19 of MSCI Emerging Markets E Mini Futures Long Futures Contracts Expiring December 2018 ................................. 5 0.00
2,864
1,974.88
29 of MSCI EAFE Mini Index Futures Long Futures Contracts Expiring December 2018 ................................. 1 0.00
5,399
2,918.47
37 of S&P 500 E Mini Index Futures Long Futures Contracts Expiring December 2018 ................................. 1 0.00
Net unrealised gain (loss) on open futures contracts ................................................... 7 0.00 Total Financial Derivative Instruments ....................................................................... 7 0.00
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.33%) ................................................................................... 555,423 99.33
Other Net Assets (0.67%) ....................................................... 3,727 0.67 Net Assets ................................................................................. 559,150 100.00
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 516 Old Mutual Multi-Style Global Equity Fund
Abbreviation used: ADR - American Depository Receipt GDR - Global Depository Receipt NVDR - Non -Voting Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to official stock exchange listing ................................................................... 86.83 Investment funds (UCITS) ................................................................................................................................. 12.47 Exchange traded financial derivative instruments ............................................................................................. 0.00 Other assets ........................................................................................................................................................ 0.70
100.00 The broker for the open futures contracts is Goldman Sachs. Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Transferable securities .................................................. 485,689 - 2 485,691Investment funds ........................................................... - 69,725 - 69,725 Unrealised gain on open futures contracts .................... 7 - - 7
Total assets ......................................................................... 485,696 69,725 2 555,423 As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 494,426 74,182 - 568,608 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (507) - - (507) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (1) - (1)
Total liabilities ................................................................... (507) (1) - (508)
Russell Investment Company plc Old Mutual Multi-Style Global Equity Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual Multi-Style Global Equity Fund 517
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 48,373 Class R Roll-Up Shares (51,846)
Schlumberger Ltd 3,685 JPMorgan Chase & Co (3,867) US Bancorp 3,660 Twenty-First Century Fox Inc (3,681) Dominion Energy Inc 3,477 DS Smith Plc (3,249) Anthem Inc 2,948 CRH Plc (2,859) Lowe's Cos Inc 2,575 BP Plc (2,786) Berkshire Hathaway Inc 2,522 KeyCorp (2,469) Fibra Uno Administracion SA de CV 1,909 Apple Inc (2,385) Enagas SA 1,772 Airbus SE (2,383) Jefferies Financial Group Inc 1,754 Cisco Systems Inc (2,091) Advance Auto Parts Inc 1,698 Russell Investment Company plc Dollar General Corp 1,686 Old Mutual Global Macro Equity Fund State Street Corp 1,667 Class E Hybrid Shares (2,000) Philip Morris International Inc 1,484 NVR Inc (1,734) Mastercard Inc 1,356 Phillips 66 (1,654) Broadcom Inc 1,185 Koninklijke Philips NV (1,646) Facebook Inc 1,079 PepsiCo Inc (1,572) Intuit Inc 1,060 IHI Corp (1,525) Ping An Insurance Group Co of China Ltd 1,044 Lam Research Corp (1,459) RPC Group Plc 1,021 Amazon.com Inc (1,414) Hengan International Group Co Ltd (1,408) Fiat Chrysler Automobiles NV (1,335)
Russell Investment Company plc Old Mutual Opportunities Global Equity Fund Balance Sheet As at 31 March 2018
The accompanying notes are an integral part of the financial statements. 518 Old Mutual Opportunities Global Equity Fund
31 March 2018* (Audited) USD ‘000
Assets Cash at bank (Note 2) ................................................................................................................................ 71
71 Liabilities Creditors – amounts falling due within one financial year:
Net assets attributable to redeemable participating shareholders ...................................................... - * As the Fund terminated on 18 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual Opportunities Global Equity Fund Profit and Loss Account For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements.
Old Mutual Opportunities Global Equity Fund 519
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ............................................................................................................................................... 690 Securities lending income (Note 3) ....................................................................................................... 3
693 Net gain (loss) on investment activities .................................................................................................... 6,742 Total investment income (expense) ........................................................................................................ 7,435 Expenses
Total operating expenses ........................................................................................................................ (245) Profit (loss) for the financial period before taxation ............................................................................ 7,190 Taxation
Withholding tax (Note 8) ....................................................................................................................... (197) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ....................................................................................................................... 6,993 * As the Fund terminated on 18 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
All amounts arose solely from terminating operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Opportunities Global Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements. 520 Old Mutual Opportunities Global Equity Fund
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................................................. 6,993 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) .................................................................................................................... (108,043)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ............................................................................................................................................. (101,050) Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................................................ 101,050
End of financial period .......................................................................................................................... - * As the Fund terminated on 18 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual Emulated Opportunities Global Equity Fund Balance Sheet As at 31 March 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Emulated Opportunities Global Equity Fund 521
31 March 2018* (Audited) USD ‘000
Assets Cash at bank (Note 2) ................................................................................................................................. 754 754 Liabilities Creditors – amounts falling due within one financial year:
Payable on fund shares redeemed .......................................................................................................... (484) Sub-custodian fees payable .................................................................................................................... (6) Administration fees payable ................................................................................................................... (1) Audit fees payable .................................................................................................................................. (14) Other fees payable .................................................................................................................................. (249)
(754) Net assets attributable to redeemable participating shareholders ....................................................... - * As the Fund terminated on 25 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual Emulated Opportunities Global Equity Fund Profit and Loss Account For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements. 522 Old Mutual Emulated Opportunities Global Equity Fund
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ............................................................................................................................................. 2,853 Securities lending income (Note 3) ...................................................................................................... 31
2,884 Net gain (loss) on investment activities ................................................................................................... 32,626 Total investment income (expense) ....................................................................................................... 35,510 Expenses
Total operating expenses ....................................................................................................................... (1,280) Profit (loss) for the financial period before taxation ........................................................................... 34,230 Taxation (Note 8)
Capital gains tax ................................................................................................................................... (61) Withholding tax .................................................................................................................................... (510)
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ...................................................................................................................... 33,659 * As the Fund terminated on 25 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
All amounts arose solely from terminating operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Emulated Opportunities Global Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements.
Old Mutual Emulated Opportunities Global Equity Fund 523
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................................................ 33,659 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................................... (407,113)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders (373,454) Net assets attributable to redeemable participating shareholders
Beginning of financial period ............................................................................................................... 373,454
End of financial period ......................................................................................................................... -
* As the Fund terminated on 25 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual MSCI Emerging Markets ESG Index Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 524 Old Mutual MSCI Emerging Markets ESG Index Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ...................................................... 43,002 63,837 Cash at bank (Note 2) ................................................................................................... - 32 Debtors:
Receivable for investments sold ............................................................................... 36 - Dividends receivable ................................................................................................ 53 173
43,091 64,042 Liabilities Creditors – amounts falling due within one financial year:
(220) (253) Net assets attributable to redeemable participating shareholders ......................... 42,871 63,789
Russell Investment Company plc Old Mutual MSCI Emerging Markets ESG Index Fund Profit and Loss Account For six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual MSCI Emerging Markets ESG Index Fund 525
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends ................................................................................................................ 909 885
Net gain (loss) on investment activities ...................................................................... (6,847) 5,617 Total investment income (expense) ......................................................................... (5,938) 6,502 Expenses
Total operating expenses .......................................................................................... (156) (127) Profit (loss) for the financial period before taxation ............................................. (6,094) 6,375 Taxation (Note 8)
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. (6,227) 6,265
All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual MSCI Emerging Markets ESG Index Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 526 Old Mutual MSCI Emerging Markets ESG Index Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... (6,227) 6,265 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (14,691) 36
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ (20,918) 6,301 Net assets attributable to redeemable participating shareholders
Beginning of financial period .................................................................................. 63,789 44,012
End of financial period ............................................................................................ 42,871 50,313
Russell Investment Company plc Old Mutual MSCI Emerging Markets ESG Index Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual MSCI Emerging Markets ESG Index Fund 527
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (100.31%) Common Stock (96.59%) Bermuda (0.63%) Automobiles
52,000
Brilliance China Automotive Holdings Ltd ....................... 84 0.20
Entertainment 270,000 Alibaba Pictures Group Ltd . 37 0.09
Home Furnishings
21,000
Haier Electronics Group Co Ltd ....................................... 57 0.13
Internet Software and Services
508,000
HengTen Networks Group Ltd ....................................... 19 0.04
Retail Trade 553 Hotel Shilla Co Ltd ............. 54 0.12 1,307 Samsung C&T Corp ............ 153 0.36
Semiconductor Equipment and Products 10,181 SK Hynix Inc ...................... 671 1.56
Shipbuilding
628
Hyundai Heavy Industries Co Ltd ................................. 76 0.18
Telecommunications 964 Samsung SDI Co Ltd ........... 225 0.53 338 SK Telecom Co Ltd ............. 86 0.20
Textile and Apparel 51 Hyosung TNC Co Ltd ......... 9 0.02
5,145 12.00 Malaysia (3.55%) Agriculture
6,900 HAP Seng Consolidated Bhd 17 0.04 Automobiles
2,200 UMW Holdings Bhd ........... 3 0.01 Banks
20,600 Alliance Bank Malaysia Bhd 21 0.05 32,400 AMMB Holdings Bhd ......... 32 0.07 82,700 CIMB Group Holdings Bhd 120 0.28 11,300 Hong Leong Bank Bhd ........ 56 0.13 62,900 Malayan Banking Bhd ......... 149 0.35 50,200 Public Bank Bhd ................. 303 0.71 18,207 RHB Bank Bhd ................... 24 0.05
Construction and Engineering
19,600
Malaysia Airports Holdings Bhd ...................................... 42 0.10
Distributors 31,400 Sime Darby Bhd .................. 20 0.05
Electric Utilities 56,000 Tenaga Nasional Bhd .......... 209 0.49
Number of Shares
Fair Value USD ‘000
Fund %
Entertainment
28,100
Astro Malaysia Holdings Bhd ..................................... 10 0.02
Food Products 900 Nestle Malaysia Bhd ........... 32 0.07 9,240 PPB Group Bhd .................. 37 0.09
Health Care Providers and Services 39,800 IHH Healthcare Bhd ........... 50 0.12
Press Metal Aluminium Holdings Bhd ...................... 25 0.06
Miscellaneous Manufacturers 23,500 Hartalega Holdings Bhd ...... 38 0.09 14,400 Top Glove Corp Bhd .......... 37 0.09
Oil and Gas 4,200 Petronas Dagangan Bhd ...... 27 0.06
Real Estate 47,800 IOI Properties Group Bhd ... 19 0.04 53,300 Sime Darby Property Bhd ... 15 0.04 27,000 SP Setia Bhd Group ............ 18 0.04
Telecommunications 46,000 Axiata Group Bhd ............... 51 0.12 49,200 DiGi.Com Bhd .................... 57 0.13 39,200 Maxis Bhd .......................... 55 0.13 13,300 Telekom Malaysia Bhd ....... 10 0.02
Transport 18,200 MISC Bhd ........................... 27 0.06
1,523 3.55 Mexico (2.41%) Beverages
8,300
Arca Continental SAB de CV ...................................... 54 0.13
8,800
Coca-Cola Femsa SAB de CV ...................................... 54 0.13
34,400
Fomento Economico Mexicano SAB de CV ........ 341 0.79
Building Products 258,171 Cemex SAB de CV ............. 182 0.43
Construction and Engineering
3,240
Grupo Aeroportuario del Sureste SAB de CV ............ 66 0.15
Electric Utilities
7,800
Infraestructura Energetica Nova SAB de CV ................ 39 0.09
Food Products 3,425 Gruma SAB de CV ............. 44 0.10 28,400 Grupo Bimbo SAB de CV .. 60 0.14
Holding Companies - Diversified Operations 50,800 Alfa SAB de CV ................. 65 0.15
Household Products
28,300
Kimberly-Clark de Mexico SAB de CV ......................... 50 0.12
Russell Investment Company plc Old Mutual MSCI Emerging Markets ESG Index Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 532 Old Mutual MSCI Emerging Markets ESG Index Fund
Number of Shares
Fair Value USD ‘000
Fund %
Metals and Mining
2,650
Industrias Penoles SAB de CV ....................................... 46 0.11
Retail Trade 9,100 Alsea SAB de CV ................ 31 0.07
1,032 2.41 Philippines (1.33%) Banks
16,646
Bank of the Philippine Islands ................................. 26 0.06
34,780 BDO Unibank Inc ............... 77 0.18
13,800
Metropolitan Bank & Trust Co ........................................ 17 0.04
Electric Utilities 17,500 Aboitiz Power Corp ............. 11 0.02
Bank Handlowy w Warszawie SA ..................... 14 0.03
7,927 Bank Millennium SA .......... 20 0.05 3,178 Bank Polska Kasa Opieki SA 92 0.22 211 mBank SA ........................... 26 0.06 642 Santander Bank Polska SA .. 65 0.15
Insurance
10,605
Powszechny Zaklad Ubezpieczen SA .................. 114 0.27
Metals and Mining 2,408 KGHM Polska Miedz SA .... 58 0.13
Oil and Gas
5,237
Polski Koncern Naftowy ORLEN SA ......................... 143 0.33
27,177
Polskie Gornictwo Naftowe i Gazownictwo SA ................ 48 0.11
Software 1,154 CD Projekt SA ..................... 59 0.14
639 1.49
Number of Shares
Fair Value USD ‘000
Fund %
Qatar (0.16%) Banks
3,497 Commercial Bank QSC ...... 39 0.09 Telecommunications
Total Transferable Securities ........................... 43,002 100.31
Fair Value USD ‘000
Fund %
Net Financial Assets at Fair Value through Profit or Loss (100.31%) ............................................................................... 43,002 100.31
Other Net Liabilities ((0.31)%) ............................................ (131) (0.31) Net Assets ............................................................................... 42,871 100.00
Abbreviation used: ADR - American Depository Receipt GDR - Global Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities and money market instruments admitted to an official stock exchange listing .......... 99.79 Other assets ..................................................................................................................................................... 0.21
100.00
Fair Value Hierarchy (Note 11) The following table analyses within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Total assets ......................................................................... 63,613 219 5 63,837
Russell Investment Company plc Old Mutual MSCI Emerging Markets ESG Index Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 536 Old Mutual MSCI Emerging Markets ESG Index Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 7,464 Class R Roll-Up Shares (7,571)
Lukoil PJSC (RUB) 2,568 Lukoil PJSC (RUB) (2,644) China Construction Bank Corp 440 Tencent Holdings Ltd (1,777) Tencent Holdings Ltd 439 China Mobile Ltd (1,198) Ctrip.com International Ltd ADR 424 Taiwan Semiconductor Manufacturing Co Ltd (1,154) Taiwan Semiconductor Manufacturing Co Ltd 327 Ping An Insurance Group Co of China Ltd (1,125) New Oriental Education & Technology Group Inc 318 Reliance Industries Ltd (852) Tata Consultancy Services Ltd 302 Naspers Ltd (668) China Mengniu Dairy Co Ltd 225 China Construction Bank Corp (581) Naspers Ltd 188 Tata Consultancy Services Ltd (406) Catcher Technology Co Ltd 187 Hyundai Mobis Co Ltd (302) First Financial Holding Co Ltd 153 SK Hynix Inc (298) Bid Corp Ltd 152 Housing Development Finance Corp Ltd (250) Eicher Motors Ltd 134 Infosys Ltd (200) Yuanta Financial Holding Co Ltd 117 Itau Unibanco Holding SA (194) Siam Cement PCL 116 Banco Bradesco SA (167) Vipshop Holdings Ltd ADR 113 Tata Motors Ltd (151) Clicks Group Ltd 102 Woori Bank (149) Housing Development Finance Corp Ltd 99 Samsung Life Insurance Co Ltd (137) SinoPac Financial Holdings Co Ltd 87 Siam Cement PCL (130)
Russell Investment Company plc Old Mutual Blended Global Equity Fund Balance Sheet As at 31 March 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Blended Global Equity Fund 537
31 March 2018* (Audited) USD ‘000
Assets Cash at bank (Note 2) ................................................................................................................................. 69 69 Liabilities Creditors – amounts falling due within one financial year:
(69) Net assets attributable to redeemable participating shareholders ....................................................... - * As the Fund terminated on 18 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual Blended Global Equity Fund Profit and Loss Account For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements. 538 Old Mutual Blended Global Equity Fund
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ............................................................................................................................................. 544
Net gain (loss) on investment activities ................................................................................................... 4,635 Total investment income (expense) ....................................................................................................... 5,179 Expenses
Management fees (Note 4) ................................................................................................................... (86) Depositary fees (Note 5) ....................................................................................................................... (6) Sub-custodian fees (Note 5) ................................................................................................................. (2) Administration and transfer agency fees (Note 5) ................................................................................ (10) Audit fees ............................................................................................................................................. (14) Professional fees ................................................................................................................................... (5) Other fees ............................................................................................................................................. (50)
Total operating expenses ....................................................................................................................... (173) Profit (loss) for the financial period before taxation ........................................................................... 5,006 Taxation
Withholding tax (Note 8) ..................................................................................................................... (105) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ...................................................................................................................... 4,901
* As the Fund terminated on 18 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
All amounts arose solely from terminating operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Blended Global Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2017
The accompanying notes are an integral part of the financial statements.
Old Mutual Blended Global Equity Fund 539
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ....................................................................................................................... 4,901 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) .................................................................................................................... (85,363)
Total net increase (decrease) in net assets attributable to redeemable participating shareholders . (80,462) Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................................................ 80,462
End of financial period .......................................................................................................................... - * As the Fund terminated on 18 July 2017, final termination financial statements were prepared for the Fund for the year end 31 March 2018.
The Fund's Balance Sheet, Profit and Loss and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are disclosed solely for presentation purposes only to correspond with the company's comparative combined financial statements.
Russell Investment Company plc Old Mutual Global Macro Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 540 Old Mutual Global Macro Equity Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss .................................................... 510,662 496,083 Cash at bank (Note 2) ................................................................................................ 8,012 7,961 Cash held with brokers and counterparties for open financial derivative instruments (Note 2) ...................................................................................................................... 5,904 5,723 Debtors:
Receivable for investment sold .............................................................................. 557 139 Dividends receivable .............................................................................................. 797 947
525,932 510,853 Liabilities Financial liabilities at fair value through profit or loss .............................................. (570) (604) Creditors – amounts falling due within one financial year:
Cash due to brokers and counterparties for open financial derivative instruments (Note 2) .................................................................................................................. - (650) Payable for investments purchased ........................................................................ (545) (139) Payable for fund shares redeemed .......................................................................... (2) - Distributions payable on hybrid accumulation share classes ................................. - (685) Management fees payable ...................................................................................... (85) (87) Depositary fees payable ......................................................................................... (37) (15) Sub-custodian fees payable .................................................................................... (19) (11) Administration fees payable ................................................................................... (29) (18) Audit fees payable .................................................................................................. (7) (14) Other fees payable .................................................................................................. (4) (2)
(1,298) (2,225) Net asset value attributable to redeemable participating shareholders .............. 524,634 508,628
Russell Investment Company plc Old Mutual Global Macro Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Macro Equity Fund 541
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends .................................................................................................................. 6,982 5,965 Securities lending income ......................................................................................... 9 -
6,991 5,965 Net gain (loss) on investment activities ........................................................................ 14,969 40,259 Total investment income (expense) ............................................................................ 21,960 46,224 Expenses
Total operating expenses ............................................................................................ (739) (417) Profit (loss) for the financial period before taxation ................................................ 21,221 45,807 Taxation (Note 8) Withholding tax ............................................................................................................ (1,225) (1,009) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................... 19,996 44,798 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Global Macro Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 542 Old Mutual Global Macro Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ................................................................... 19,996 44,798 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ................................................................................................ (3,990) 25,207
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ........................................................................................ 16,006 70,005 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................... 508,628 440,093
End of financial period ............................................................................................. 524,634 510,098
Russell Investment Company plc Old Mutual Global Macro Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Macro Equity Fund 543
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (88.10%) Common Stock (87.69%) Australia (1.80%) Banks
30,247
Australia & New Zealand Banking Group Ltd ............. 617 0.12
17,250
Commonwealth Bank of Australia .............................. 891 0.17
3,457 Macquarie Group Ltd .......... 315 0.06 24,411 National Australia Bank Ltd 491 0.09 34,818 Westpac Banking Corp ........ 704 0.14
Russell Investment Company plc Old Mutual Global Macro Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 548 Old Mutual Global Macro Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Telecommunications 60,459 Nokia OYJ ........................... 335 0.06
1,473 0.28 France (2.81%) Aerospace and Defence
3,346 Safran SA ............................ 469 0.09 1,646 Thales SA ............................ 234 0.04
Auto Components
2,090
Cie Generale des Etablissements Michelin SCA ..................................... 250 0.05
3,135 Valeo SA ............................. 136 0.02 Automobiles
6,479 Peugeot SA .......................... 175 0.03 2,327 Renault SA .......................... 201 0.04
Banks 10,886 BNP Paribas SA .................. 666 0.13 13,420 Credit Agricole SA .............. 193 0.04 8,703 Natixis SA ........................... 59 0.01 7,288 Societe Generale SA ............ 313 0.06
Beverages 2,218 Pernod Ricard SA ................ 364 0.07
Building Products 4,996 Cie de Saint-Gobain ............ 216 0.04
Chemicals 4,507 Air Liquide SA .................... 593 0.12 1,364 Arkema SA .......................... 169 0.03
Commercial Services and Supplies 5,794 Bureau Veritas SA ............... 150 0.03 3,230 Edenred ............................... 123 0.02
Computers and Peripherals 1,269 Atos SE ............................... 151 0.03 2,045 Capgemini SE ...................... 257 0.05
Construction and Engineering 1,748 Bouygues SA ....................... 76 0.01 1,845 Eiffage SA ........................... 206 0.04 4,440 Vinci SA .............................. 423 0.08
Distributors 5,264 Rexel SA ............................. 79 0.02
Electric Utilities 5,074 Electricite de France SA ...... 89 0.01 17,002 Engie SA ............................. 250 0.05
Electrical Equipment 3,023 Legrand SA ......................... 220 0.04 5,220 Schneider Electric SE .......... 420 0.08
Food Products 7,311 Carrefour SA ....................... 140 0.03 6,309 Danone SA .......................... 489 0.09 711 Sodexo SA ........................... 75 0.01
Number of Shares
Fair Value USD ‘000
Fund %
Health Care Equipment and Supplies
2,035
Essilor International Cie Generale d'Optique SA ....... 301 0.06
Insurance 20,326 AXA SA ............................. 547 0.11 1,595 SCOR SE ............................ 74 0.01
Internet Software and Services 246 Iliad SA ............................... 32 0.01
Lodging 1,587 Accor SA ............................ 82 0.02
Media 11,286 Vivendi SA ......................... 291 0.06
Miscellaneous Manufacturers 1,448 Alstom SA .......................... 65 0.01
Oil and Gas 22,727 Total SA .............................. 1,474 0.28
Other Finance 431 Wendel SA .......................... 64 0.01
Personal Products 2,537 L'Oreal SA .......................... 612 0.12
Real Estate Investment Trust 405 Gecina SA ........................... 68 0.01 1,822 Klepierre SA ....................... 65 0.01 1,696 Unibail-Rodamco-Westfield 341 0.07
Software 2,130 Dassault Systemes SE ......... 319 0.06 937 Ubisoft Entertainment SA ... 102 0.02
Telecommunications 19,422 Orange SA .......................... 310 0.06
Textile and Apparel 383 Hermes International .......... 254 0.05 866 Kering SA ........................... 464 0.09
2,870
LVMH Moet Hennessy Louis Vuitton SE ................ 1,015 0.19
Transport 4,813 Getlink SE .......................... 61 0.01
Water Utilities 3,711 Suez .................................... 53 0.01
14,727 2.81 Germany (2.35%) Aerospace and Defence
730 MTU Aero Engines AG ...... 165 0.03 Auto Components
1,218 Continental AG ................... 212 0.04 Automobiles
3,455
Bayerische Motoren Werke AG ...................................... 312 0.06
8,635 Daimler AG ........................ 545 0.10 308 Volkswagen AG .................. 54 0.01
Russell Investment Company plc Old Mutual Global Macro Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Macro Equity Fund 549
Number of Shares
Fair Value USD ‘000
Fund %
Banks 9,183 Commerzbank AG .............. 96 0.02 20,366 Deutsche Bank AG .............. 232 0.04
Building Products 1,856 HeidelbergCement AG ........ 145 0.03
Chemicals 9,200 BASF SE ............................. 818 0.16 2,871 Brenntag AG ....................... 177 0.03 1,900 Covestro AG ....................... 154 0.03 5,006 K&S AG .............................. 105 0.02 1,933 Lanxess AG ......................... 142 0.03 1,819 Linde AG ............................. 376 0.07
Commercial Services and Supplies 1,413 Wirecard AG ....................... 306 0.06
Diversified Financials 2,238 Deutsche Boerse AG ........... 300 0.06
Electric Utilities 25,897 E.ON SE .............................. 264 0.05 1,252 Innogy SE ............................ 56 0.01 4,322 RWE AG ............................. 107 0.02
Electrical Equipment 805 OSRAM Licht AG .............. 32 0.01
Food Products 1,792 METRO AG ........................ 28 0.01
Health Care Providers and Services
2,548
Fresenius Medical Care AG & Co KGaA ........................ 262 0.05
3,916 Fresenius SE & Co KGaA ... 288 0.05 Hotels, Restaurants and Leisure
4,000 TUI AG ............................... 77 0.01 Insurance
4,103 Allianz SE ........................... 915 0.18
1,487
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen ............................ 329 0.06
Internet Software and Services 3,924 United Internet AG .............. 186 0.04
Iron and Steel 4,939 ThyssenKrupp AG .............. 125 0.02
Machinery 1,636 GEA Group AG ................... 58 0.01
Media 3,792 ProSiebenSat.1 Media SE .... 99 0.02
Miscellaneous Manufacturers 7,380 Siemens AG ........................ 946 0.18
Personal Products 2,158 Beiersdorf AG ..................... 244 0.05
Pharmaceuticals 9,043 Bayer AG ............................ 804 0.15
Real Estate 5,273 Deutsche Wohnen SE .......... 253 0.05
Number of Shares
Fair Value USD ‘000
Fund %
5,804 Vonovia SE ......................... 284 0.05 Retail Trade
634 Hugo Boss AG .................... 49 0.01 Semiconductor Equipment and Products
12,392 Infineon Technologies AG .. 282 0.05 Software
9,599 SAP SE ............................... 1,182 0.23 Telecommunications
31,341 Deutsche Telekom AG ........ 505 0.10 Textile and Apparel
1,882 Adidas AG .......................... 461 0.09 Transport
9,162 Deutsche Post AG ............... 327 0.06 12,302 2.35 Hong Kong (1.18%) Banks
13,200 Bank of East Asia Ltd ......... 49 0.01
31,000
BOC Hong Kong Holdings Ltd ...................................... 147 0.03
146,000 CITIC Ltd ........................... 218 0.04 6,200 Hang Seng Bank Ltd ........... 168 0.03
Beverages
22,000
China Resources Beer Holdings Co Ltd ................. 88 0.02
Commercial Services and Supplies
44,000
China Merchants Port Holdings Co Ltd ................. 84 0.02
Computers and Peripherals 78,000 Lenovo Group Ltd .............. 57 0.01
Diversified Financials
15,700
Hong Kong Exchanges & Clearing Ltd ........................ 449 0.08
Electric Utilities
62,000
China Resources Power Holdings Co Ltd ................. 110 0.02
Banks 18,071 Axis Bank Ltd ..................... 154 0.03 29,708 ICICI Bank Ltd ................... 125 0.02 34,317 State Bank of India .............. 126 0.03 24,210 Yes Bank Ltd ...................... 61 0.01
Number of Shares
Fair Value USD ‘000
Fund %
Building Products 8,885 Grasim Industries Ltd ......... 124 0.02
5,300 J Front Retailing Co Ltd ...... 82 0.02 600 Lawson Inc .......................... 37 0.01 800 Nitori Holdings Co Ltd ....... 115 0.02 200 Ryohin Keikaku Co Ltd ...... 60 0.01 2,600 USS Co Ltd ......................... 48 0.01
Semiconductor Equipment and Products 1,600 Hamamatsu Photonics KK .. 64 0.01 900 Rohm Co Ltd ....................... 66 0.01 1,900 Tokyo Electron Ltd ............. 261 0.05
Software 5,300 Nexon Co Ltd ...................... 69 0.01
Retail Trade 4,878 Clicks Group Ltd ................. 60 0.01 4,002 Mr Price Group Ltd ............. 65 0.02
Telecommunications 21,278 MTN Group Ltd .................. 132 0.02 4,927 Vodacom Group Ltd ............ 44 0.01
3,279 0.63 Spain (0.82%) Airlines
8,636
International Consolidated Airlines Group SA ............... 74 0.01
Banks
63,976 Banco Bilbao Vizcaya Argentaria SA ...................... 408 0.08
45,929 Banco de Sabadell SA ......... 71 0.01 171,927 Banco Santander SA ............ 866 0.16 35,672 Bankia SA ........................... 140 0.03 44,813 CaixaBank SA ..................... 205 0.04
Number of Shares
Fair Value USD ‘000
Fund %
Construction and Engineering
2,091
ACS Actividades de Construccion y Servicios SA ....................................... 89 0.02
1,282 Aena SME SA .................... 223 0.04 4,359 Ferrovial SA ....................... 90 0.02
Electric Utilities 56,358 Iberdrola SA ....................... 415 0.08
Gas Utilities 4,660 Enagas SA .......................... 126 0.02 3,269 Naturgy Energy Group SA . 89 0.02
Oil and Gas 14,902 Repsol SA ........................... 297 0.06
Pharmaceuticals 2,622 Grifols SA ........................... 74 0.01
Retail Trade
11,118
Industria de Diseno Textil SA ....................................... 337 0.07
Software 4,418 Amadeus IT Group SA ....... 411 0.08
Telecommunications 48,425 Telefonica SA ..................... 383 0.07
4,298 0.82 Sweden (0.75%) Agriculture
1,822 Swedish Match AB ............. 93 0.02 Automobiles
16,259 Volvo AB ............................ 287 0.05 Banks
26,738 Nordea Bank AB ................. 291 0.06
10,500
Skandinaviska Enskilda Banken AB ......................... 117 0.02
15,138 Svenska Handelsbanken AB 191 0.04 8,980 Swedbank AB ..................... 222 0.04
Commercial Services and Supplies 7,116 Securitas AB ....................... 124 0.02
Construction and Engineering 2,913 Skanska AB ........................ 57 0.01
Electrical Equipment 11,352 Assa Abloy AB ................... 228 0.04
Hand and Machine Tools 11,844 Sandvik AB ......................... 210 0.04
Home Furnishings 2,144 Electrolux AB ..................... 47 0.01
Machinery
6,949
Atlas Copco AB (Class A Shares) ................................ 200 0.04
5,409
Atlas Copco AB (Class B Shares) ................................ 144 0.03
6,949 Epiroc AB (Class A Shares) 78 0.02 5,409 Epiroc AB (Class B Shares) 56 0.01 2,793 Hexagon AB ....................... 164 0.03 8,990 Husqvarna AB .................... 77 0.01
Russell Investment Company plc Old Mutual Global Macro Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Macro Equity Fund 559
Number of Shares
Fair Value USD ‘000
Fund %
Metals and Mining 4,556 Boliden AB ......................... 127 0.03 3,360 SKF AB ............................... 66 0.01
Miscellaneous Manufacturers 3,316 Alfa Laval AB ..................... 90 0.02
Other Finance 4,975 Investor AB ......................... 230 0.05 2,384 Kinnevik AB ....................... 72 0.01
Personal Products 7,069 Essity AB ............................ 178 0.03
Retail Trade 9,285 Hennes & Mauritz AB ......... 171 0.03
Telecommunications
35,533
Telefonaktiebolaget LM Ericsson ............................... 315 0.06
22,379 Telia Co AB ........................ 103 0.02 3,938 0.75 Switzerland (2.46%) Banks
29,466 Credit Suisse Group AG ...... 445 0.08 34,674 UBS Group AG ................... 550 0.11
Beverages 2,047 Coca-Cola HBC AG ............ 70 0.01
Building Products 446 Geberit AG .......................... 208 0.04 4,495 LafargeHolcim Ltd .............. 223 0.04 1,020 Sika AG ............................... 149 0.03
Chemicals 110 Givaudan SA ....................... 272 0.05
Commercial Services and Supplies 2,398 Adecco Group AG ............... 127 0.03 44 SGS SA ............................... 116 0.02
Diversified Financials 3,493 Julius Baer Group Ltd ......... 176 0.03 121 Partners Group Holding AG 96 0.02
Real Estate Investment Trust 8,376 British Land Co Plc ............ 67 0.01 15,628 Hammerson Plc ................... 93 0.02 10,062 Land Securities Group Plc .. 116 0.02
Russell Investment Company plc Old Mutual Global Macro Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 562 Old Mutual Global Macro Equity Fund
Automobiles 37,530 Ford Motor Co .................... 347 0.07 13,160 General Motors Co ............. 443 0.08 3,659 PACCAR Inc ...................... 250 0.05 1,238 Tesla Inc ............................. 328 0.06
Banks 92,640 Bank of America Corp ........ 2,729 0.52
10,500
Bank of New York Mellon Corp .................................... 535 0.10
7,063 BB&T Corp ........................ 343 0.07 4,633 Capital One Financial Corp 440 0.08 1,700 CIT Group Inc .................... 88 0.02 25,090 Citigroup Inc ....................... 1,800 0.34 5,787 Citizens Financial Group Inc 223 0.04 1,564 Comerica Inc ....................... 141 0.03 1,900 East West Bancorp Inc ........ 115 0.02 8,260 Fifth Third Bancorp ............ 231 0.04 1,866 First Republic Bank ............ 179 0.03 3,594 Goldman Sachs Group Inc .. 806 0.15 13,508 Huntington Bancshares Inc . 202 0.04 33,408 JPMorgan Chase & Co ....... 3,770 0.72 11,813 KeyCorp ............................. 235 0.05 1,442 M&T Bank Corp ................. 237 0.05 13,399 Morgan Stanley ................... 624 0.12 2,465 Northern Trust Corp ........... 252 0.05
4,757
PNC Financial Services Group Inc ............................ 648 0.12
9,824 Regions Financial Corp ...... 180 0.03 800 Signature Bank ................... 92 0.02 3,742 State Street Corp ................. 314 0.06 4,500 SunTrust Banks Inc ............. 301 0.06 500 SVB Financial Group ......... 155 0.03 15,548 US Bancorp ......................... 821 0.16 44,665 Wells Fargo & Co ............... 2,348 0.45 2,500 Zions Bancorporation ......... 125 0.02
Old Dominion Freight Line Inc ....................................... 97 0.02
7,390 Union Pacific Corp .............. 1,203 0.23 6,390 United Parcel Service Inc .... 746 0.14 1,200 XPO Logistics Inc ............... 137 0.03
Water Utilities
2,281
American Water Works Co Inc ....................................... 201 0.04
244,940 46.69
Number of Shares
Fair Value USD ‘000
Fund %
Virgin Islands, British (0.02%) Textile and Apparel
1,300 Michael Kors Holdings Ltd 89 0.02 Total Common Stock ........ 460,046 87.69 Preferred Stock (0.41%) Brazil (0.21%) Banks
34,577 Banco Bradesco SA ............ 248 0.05 36,600 Itau Unibanco Holding SA . 404 0.07
Holding Companies - Diversified Operations
63,580
Itausa - Investimentos Itau SA ....................................... 161 0.03
Oil and Gas 44,133 Petroleo Brasileiro SA ........ 233 0.04
Retail Trade 8,100 Lojas Americanas SA ......... 32 0.01
Telecommunications 4,900 Telefonica Brasil SA ........... 48 0.01
1,126 0.21 Germany (0.14%) Automobiles
1,282
Porsche Automobil Holding SE ....................................... 86 0.02
2,494 Volkswagen AG .................. 439 0.08 Household Products
1,790 Henkel AG & Co KGaA ..... 210 0.04 735 0.14 Korea, Republic of (0.06%) Diversified Financials
2,059 Mirae Asset Daewoo Co Ltd 8 0.00 Semiconductor Equipment and Products
9,200 Samsung Electronics Co Ltd 314 0.06 322 0.06 Total Preferred Stock ....... 2,183 0.41
Total Transferable Securities ........................... 462,229 88.10
Investment Funds (8.78%) Ireland (8.78%)
44,698
Russell Investment Company III plc Russell Investments U.S. Dollar Cash Fund II - Class R Roll-Up Shares ...... 46,045 8.78
Total Investment Funds .... 46,045 8.78
Total Investments excluding Financial Derivative Instruments ..... 508,274 96.88
Russell Investment Company plc Old Mutual Global Macro Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Macro Equity Fund 569
Financial Derivative Instruments ((0.34%) Open Futures Contracts (0.34%)
Notional Amount
USD ‘000
Average Cost Price
USD
Unrealised Gain (Loss) USD ‘000
Fund %
51,466 252.28
1,020 of Acwi Ntr Index Long Futures Contracts Expiring December 2018 ................................. 926 0.18
14,783 90.28
131 of Japan Yen Currency Futures Long Futures Contracts Expiring December 2018 ................................. (284) (0.05)
(14,754) (0.71)
207 of AUD USD Currency Futures Short Futures Contracts Expiring December 2018 ................................. (205) (0.04)
14,699 122.19
2,406 of Euro Stoxx Bank Long Futures Contracts Expiring December 2018 ................................. 126 0.02
(7,400) (454.00)
326 of MSCI Philippines Short Futures Contracts Expiring December 2018 ................................. 179 0.03
14,525 14.82
98 of Topix Index Futures Long Futures Contracts Expiring December 2018 ................................. 1,157 0.22
(15,045) (4,457.79)
135 of SPI 200 Futures Short Futures Contracts Expiring December 2018 ................................. (81) (0.02)
Unrealised gain on open futures contracts ...................................................................... 2,388 0.45 Unrealised loss on open futures contracts ....................................................................... (570) (0.11) Net unrealised gain (loss) on open futures contracts ................................................. 1,818 0.34
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (97.33%) ......................................................................... 510,662 97.33
Total Financial Liabilities at Fair Value through Profit or Loss ((0.11)%) ......................................................................... (570) (0.11)
Net Financial Assets at Fair Value through Profit or Loss (97.22%) .................................................................................. 510,092 97.22
Other Net Assets (2.78%) ...................................................... 14,542 2.78 Net Assets ................................................................................ 524,634 100.00
Abbreviation used: ADR - American Depository Receipt GDR - Global Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ............................................................ 87.89 Investment funds (UCITS) .............................................................................................................................. 8.75 Exchange traded financial derivative instruments .......................................................................................... 0.45 Other assets ..................................................................................................................................................... 2.91
100.00
The broker for the open futures contracts is JP Morgan.
Russell Investment Company plc Old Mutual Global Macro Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements. 570 Old Mutual Global Macro Equity Fund
Fair Value Hierarchy (Note 11) The following tables analyse within the fair value hierarchy the Fund’s financial assets and liabilities (by investment type) measured at fair value at 30 September 2018 and 31 March 2018. As at 30 September 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Transferable securities .................................................. 462,097 132 - 462,229Investment funds ........................................................... - 46,045 - 46,045 Unrealised gain on open futures contracts .................... 2,388 - - 2,388
Total assets ......................................................................... 464,485 46,177 - 510,662 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (570) - - (570) Total liabilities ................................................................... (570) - - (570) As at 31 March 2018
Level 1
USD ‘000 Level 2
USD ‘000 Level 3
USD ‘000 Total
USD ‘000 Assets Financial assets at fair value through profit or loss:
Investments at fair value: Transferable securities .................................................. 445,162 47 - 445,209Investment funds ........................................................... - 49,355 - 49,355 Unrealised gain on open futures contracts .................... 688 - - 688 Unrealised gain on open forward foreign currency exchange contracts ........................................................ - 831 - 831
Total assets ......................................................................... 445,850 50,233 - 496,083 Liabilities Financial liabilities at fair value through profit or loss:
Unrealised loss on open futures contracts ........................ (409) - - (409) Unrealised loss on open forward foreign currency exchange contracts ........................................................... - (195) - (195)
Total liabilities ................................................................... (409) (195) - (604)
Russell Investment Company plc Old Mutual Global Macro Equity Fund Statement of Changes in Composition of Portfolio Listed below are 20 largest cumulative investment purchases and cumulative investment sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual Global Macro Equity Fund 571
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Russell Investment Company III plc Russell Investment Company III plc
Russell Investments U.S. Dollar Cash Fund II Russell Investments U.S. Dollar Cash Fund II Class R Roll-Up Shares 11,367 Class R Roll-Up Shares (15,164)
Kweichow Moutai Co Ltd 974 Kweichow Moutai Co Ltd (965) Teva Pharmaceutical Industries Ltd ADR 873 Apple Inc (886) Ping An Insurance Group Co of China Ltd 729 Ping An Insurance Group Co of China Ltd (726) China Merchants Bank Co Ltd 633 China Merchants Bank Co Ltd (623) Apple Inc 404 Bank of America Corp (392) China Yangtze Power Co Ltd 391 Microsoft Corp (392) Amazon.com Inc 368 China Yangtze Power Co Ltd (387) Alphabet Inc (Class A) 346 Osaka Gas Co Ltd (369) Midea Group Co Ltd 337 Amazon.com Inc (364) Hangzhou Hikvision Digital Technology Co Ltd 336 Exxon Mobil Corp (356) China Vanke Co Ltd 312 Atmos Energy Corp (327) CITIC Securities Co Ltd 308 China Vanke Co Ltd (317) Unibail-Rodamco-Westfield 293 CITIC Securities Co Ltd (304) Anhui Conch Cement Co Ltd 280 Chevron Corp (291) Credit Suisse Group AG 278 China State Construction Engineering Corp Ltd (270) China State Construction Engineering Corp Ltd 278 Anhui Conch Cement Co Ltd (260) Guotai Junan Securities Co Ltd 254 UCB SA (257) Poly Real Estate Group Co Ltd 245 Guotai Junan Securities Co Ltd (252) Microsoft Corp 243 Poly Real Estate Group Co Ltd (249)
Russell Investment Company plc Old Mutual Global Islamic Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 572 Old Mutual Global Islamic Equity Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ................................................... 89,995 76,818 Cash at bank (Note 2) ............................................................................................... 904 2,927 Debtors:
Dividends receivable ............................................................................................. 205 211 91,104 79,956 Liabilities Creditors – amounts falling due within one financial year:
(203) (2,578) Net asset value attributable to redeemable participating shareholders .............. 90,901 77,378
Russell Investment Company plc Old Mutual Global Islamic Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Islamic Equity Fund 573
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Income Dividends ................................................................................................................ 2,546 1,143
Net gain (loss) on investment activities ...................................................................... 4,016 3,552 Total investment income (expense) ......................................................................... 6,562 4,695 Expenses
Total operating expenses .......................................................................................... (244) (134) Profit (loss) for the financial period before taxation ............................................. 6,318 4,561 Taxation
Withholding tax (Note 8) ........................................................................................ (628) (167) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. 5,690 4,394 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Global Islamic Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 574 Old Mutual Global Islamic Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. 5,690 4,394 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ..................................................................................... 7,833 3,123
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ....................................................................................... 13,523 7,517 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................. 77,378 59,951 End of financial period ........................................................................................... 90,901 67,468
Russell Investment Company plc Old Mutual Global Islamic Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Islamic Equity Fund 575
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (99.01%) Common Stock (99.00%) Australia (1.22%) Construction and Engineering
42,863 LendLease Group ................ 610 0.67 Retail Trade
193,771
Harvey Norman Holdings Ltd ....................................... 494 0.55
Textile and Apparel 11,711 VF Corp .............................. 1,094 1.20
56,690 62.37 Total Common Stock ........ 89,988 99.00 Rights (0.01%) Australia (0.01%)
11,398
Harvey Norman Holdings Ltd ...................................... 7 0.01
Total Rights ....................... 7 0.01
Total Transferable Securities ........................... 89,995 99.01
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.01%) ......................................................................... 89,995 99.01
Other Net Assets (0.99%) ...................................................... 906 0.99 Net Assets ................................................................................ 90,901 100.00
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ............................................................ 98.78 Other assets ..................................................................................................................................................... 1.22
100.00 Fair Value Hierarchy (Note 11) All securities held as of 30 September 2018 and 31 March 2018 are classified as Level 1.
Russell Investment Company plc Old Mutual Global Islamic Equity Fund Statement of Changes in Composition of Portfolio Listed below are cumulative investment purchases and cumulative investment sales in excess of 1% of total investment purchases or sales respectively during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution.
Old Mutual Global Islamic Equity Fund 577
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 salesforce.com Inc 2,744 HP Inc (2,891) Delta Air Lines Inc 2,184 Pfizer Inc (2,591) Express Scripts Holding Co 2,154 International Business Machines Corp (2,087) Phillips 66 2,091 Cummins Inc (1,706) Kyushu Railway Co 1,960 Stryker Corp (1,661) Alphabet Inc 1,921 Kyushu Railway Co (1,634) HP Inc 1,919 Alphabet Inc (1,343) Ryman Healthcare Ltd 1,891 Neste OYJ (1,316) Valero Energy Corp 1,694 Kagome Co Ltd (1,236) Dr Pepper Snapple Group Inc 1,633 ASM Pacific Technology Ltd (1,232) ServiceNow Inc 1,335 Exxon Mobil Corp (1,007) Akamai Technologies Inc 1,147 Otsuka Corp (990) eBay Inc 1,058 TE Connectivity Ltd (982) VF Corp 952 Xylem Inc (938) Microsoft Corp 689 Agnico Eagle Mines Ltd (878) Procter & Gamble Co 682 3M Co (869) SK Hynix Inc 664 Texas Instruments Inc (757) Neste Oyj 629 Valero Energy Corp (706) Royal Mail PLC 574 Microsoft Corp (685) PepsiCo Inc 573 MTR Corp Ltd (591) LendLease Group 516 Amdocs Ltd (556) Astellas Pharma Inc 516 CA Inc (445) Harvey Norman Holdings Ltd 489 CLP Holdings Ltd (352) CA Inc 471 Kuerig Dr Pepper Inc (339) F5 Networks Inc 454 TJX Cos Inc 453 Ecolab Inc 447 VTech Holdings Ltd 441 Johnson & Johnson 423 NTT Docomo Inc 422 Orsted A/S 421 Pfizer Inc 414
Russell Investment Company plc Old Mutual Global Managed Volatility Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements. 578 Old Mutual Global Managed Volatility Fund
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ................................................... 37,235 36,041 Cash at bank (Note 2) ............................................................................................... 1,033 569 Debtors:
Dividends receivable ............................................................................................. 113 122 Prepayments and other debtors ............................................................................. - 7 38,381 36,739
Liabilities Creditors – amounts falling due within one financial year:
(12) (76) Net asset value attributable to redeemable participating shareholders ............. 38,369 36,663
Russell Investment Company plc Old Mutual Global Managed Volatility Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Managed Volatility Fund 579
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ................................................................................................................ 944 297
Net gain (loss) on investment activities ...................................................................... 952 405 Total investment income (expense) ......................................................................... 1,896 702 Expenses
Total operating expenses .......................................................................................... (29) (15) Profit (loss) for the financial period before taxation ............................................. 1,867 687 Taxation
Withholding tax (Note 8) ........................................................................................ (214) (62) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. 1,653 625 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account. * The Fund launched on 14 June 2017.
Russell Investment Company plc Old Mutual Global Managed Volatility Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 580 Old Mutual Global Managed Volatility Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. 1,653 625 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ..................................................................................... 53 35,152
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ....................................................................................... 1,706 35,777 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................. 36,663 - End of financial period ........................................................................................... 38,369 35,777
* The Fund launched on 14 June 2017.
Russell Investment Company plc Old Mutual Global Managed Volatility Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Managed Volatility Fund 581
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (97.04%) Common Stock (95.09%) Austria (2.81%) Oil and Gas
19,185 OMV AG ............................. 1,078 2.81 Belgium (2.53%) Food Products
8,700 Colruyt SA .......................... 493 1.28 Telecommunications
Annaly Capital Management Inc ....................................... 765 1.99
Retail Trade 1,226 Advance Auto Parts Inc ...... 206 0.54 4,400 Best Buy Co Inc .................. 349 0.91 5,961 Genuine Parts Co ................ 593 1.55 900 Home Depot Inc .................. 186 0.48
Semiconductor Equipment and Products 2,400 NVIDIA Corp ..................... 675 1.76
Russell Investment Company plc Old Mutual Global Managed Volatility Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Managed Volatility Fund 583
Number of Shares
Fair Value USD ‘000
Fund %
Software
1,814
Fidelity National Information Services Inc ..... 198 0.52
Porsche Automobil Holding SE ....................................... 751 1.95
Total Preferred Stock ....... 751 1.95
Total Transferable Securities ........................... 37,235 97.04
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (97.04%) .......................................................................................... 37,235 97.04
Other Net Assets (2.96%) .............................................................. 1,134 2.96 Net Assets ........................................................................................ 38,369 100.00
Abbreviation used: ADR - American Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing ...................................................... 97.00 Other assets ............................................................................................................................................... 3.00
100.00 Fair Value Hierarchy (Note 11) All securities held as of 30 September 2018 and 31 March 2018 are classified as Level 1.
Russell Investment Company plc Old Mutual Global Managed Volatility Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 584 Old Mutual Global Managed Volatility Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 HollyFrontier Corp 802 Wells Fargo & Co (419) Porsche Automobil Holding SE 773 General Electric Co (363) HCA Healthcare Inc 445 EDP - Energias de Portugal SA (343) SG Holdings Co Ltd 373 Foot Locker Inc (312) Dr Pepper Snapple Group Inc 227 OMV AG (285) Sirius XM Holdings Inc 220 Medipal Holdings Corp (272) ServiceNow Inc 180 Molson Coors Brewing Co (204) DBS Group Holdings Ltd 143 Mettler-Toledo International Inc (199) Kyushu Electric Power Co Inc 90 Mitsubishi Tanabe Pharma Corp (145) Charter Communications Inc 50 CenturyLink Inc (141) Humana Inc 29 Waters Corp (140) Everest Re Group Ltd 28 Cardinal Health Inc (125) AT&T Inc 26 Dixons Carphone Plc (120) NVIDIA Corp 26 Shire PLC (96) Willis Towers Watson Plc 25 Micro Focus International Plc ADR (28) Cigna Corp 24 Randgold Resources Ltd (20) T-Mobile US Inc 22 Dell Technologies Inc Class V (20) Harris Corp 21 Aetna Inc (19) Royal Dutch Shell Plc 20 Axis Capital Holdings Ltd (14) Chevron Corp 18 CVS Health Corp (14)
Russell Investment Company plc Old Mutual Quality Global Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Quality Global Equity Fund 585
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ................................................... 138,542 137,738 Cash at bank (Note 2) ............................................................................................... 10 440 Debtors:
Dividends receivable ............................................................................................. 137 138 138,689 138,316 Liabilities Creditors – amounts falling due within one financial year:
(89) (277) Net asset value attributable to redeemable participating shareholders ............. 138,600 138,039
Russell Investment Company plc Old Mutual Quality Global Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 586 Old Mutual Quality Global Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ................................................................................................................ 1,253 459 Securities lending income ....................................................................................... 3 -
1,256 459 Net gain (loss) on investment activities ...................................................................... 9,581 5,828 Total investment income (expense) ......................................................................... 10,837 6,287 Expenses
Total operating expenses .......................................................................................... (398) (160) Profit (loss) for the financial period before taxation ............................................. 10,439 6,127 Taxation
Withholding tax (Note 8) ........................................................................................ (300) (92) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. 10,139 6,035 * This Fund launched on 7 July 2017. All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Quality Global Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Quality Global Equity Fund 587
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. 10,139 6,035 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ..................................................................................... (9,578) 118,927
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ....................................................................................... 561 124,962 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................. 138,039 - End of financial period ........................................................................................... 138,600 124,962
* This Fund launched on 7 July 2017.
Russell Investment Company plc Old Mutual Quality Global Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 588 Old Mutual Quality Global Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (99.96%) Common Stock (99.96%) Canada (1.48%) Transport
22,824
Canadian National Railway Co ........................................ 2,050 1.48
India (2.86%) Banks
42,047 HDFC Bank Ltd ADR ......... 3,957 2.86 Japan (6.59%) Machinery
Textile and Apparel 38,700 NIKE Inc ............................ 3,279 2.37
81,274 58.64 Total Common Stock ........ 138,542 99.96
Total Transferable Securities ........................... 138,542 99.96
Russell Investment Company plc Old Mutual Quality Global Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Quality Global Equity Fund 589
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.96%) .......................................................................................... 138,542 99.96
Other Net Assets (0.04%) .............................................................. 58 0.04 Net Assets ........................................................................................ 138,600 100.00
Abbreviation used: ADR - American Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing .................................................................... 99.89 Other assets ............................................................................................................................................................. 0.11
100.00 Fair Value Hierarchy (Note 11) All securities held as of 30 September 2018 and 31 March 2018 are classified as Level 1.
Russell Investment Company plc Old Mutual Quality Global Equity Fund Statement of Changes in Composition of Portfolio Listed below are all cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 590 Old Mutual Quality Global Equity Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Taiwan Semiconductor Manufacturing Co Ltd ADR 534 Hengan International Group Co Ltd (1,830) PepsiCo Inc 473 MSCI Inc (592) Alphabet Inc 328 Cie Financiere Richemont SA (517) Moody's Corp 319 Moody's Corp (508) Colgate-Palmolive Co 213 Mastercard Inc (498) Oracle Corp 198 TJX Cos Inc (476) Keyence Corp 186 Sherwin-Williams Co (461) Sherwin-Williams Co 182 Johnson & Johnson (458) CME Group Inc 168 Diageo Plc (442) Cie Financiere Richemont SA 151 HDFC Bank Ltd ADR (430) Intertek Group Plc 136 Taiwan Semiconductor Manufacturing Co Ltd ADR (414) Schindler Holding AG 124 Intertek Group Plc (382) MSCI Inc 117 NIKE Inc (363) US Bancorp (347) Becton Dickinson and Co (342) Keyence Corp (339) 3M Co (307) Schindler Holding AG (303) Nestle SA (290) Oracle Corp (258) United Technologies Corp (252) Varian Medical Systems Inc (210) CME Group Inc (199) Svenska Handelsbanken AB (192) Spirax-Sarco Engineering Plc (147) PepsiCo Inc (144) Unilever NV (144) AutoZone Inc (140) Roche Holding AG (136) Alphabet Inc (133) Graco Inc (127) Colgate-Palmolive Co (125)
Russell Investment Company plc Old Mutual Growth Global Equity Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Growth Global Equity Fund 591
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ................................................... 89,777 90,618 Cash at bank (Note 2) ............................................................................................... 817 2,790 Debtors:
Receivable for investments sold ........................................................................... 2 16 Dividends receivable ............................................................................................. 84 164
90,680 93,588 Liabilities Creditors – amounts falling due within one financial year:
(105) (225) Net asset value attributable to redeemable participating shareholders ............. 90,575 93,363
Russell Investment Company plc Old Mutual Growth Global Equity Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 592 Old Mutual Growth Global Equity Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ................................................................................................................ 720 183 Securities lending income ....................................................................................... 5 - 725 183
Net gain (loss) on investment activities ...................................................................... 2,291 2,556 Total investment income (expense) ......................................................................... 3,016 2,739 Expenses
Total operating expenses .......................................................................................... (298) (104) Profit (loss) for the financial period before taxation ............................................. 2,718 2,635 Taxation
Withholding tax (Note 8) ........................................................................................ (105) (28) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. 2,613 2,607 * This Fund launched on 18 July 2017. All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account.
Russell Investment Company plc Old Mutual Growth Global Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Growth Global Equity Fund 593
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. 2,613 2,607 Share transactions
Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 9) ..................................................................................... (5,401) 78,061
Total net increase (decrease) in net assets attributable to redeemable participating shareholders ....................................................................................... (2,788) 80,668 Net assets attributable to redeemable participating shareholders
Beginning of financial period ................................................................................. 93,363 - End of financial period ........................................................................................... 90,575 80,668
* This Fund launched on 18 July 2017.
Russell Investment Company plc Old Mutual Growth Global Equity Fund Schedule of Investments 30 September 2018
The accompanying notes are an integral part of the financial statements. 594 Old Mutual Growth Global Equity Fund
Number of Shares
Fair Value USD ‘000
Fund %
Transferable Securities (99.12%) Common Stock (97.94%) Australia (0.44%) Miscellaneous Manufacturers
40,192 44.37 Virgin Islands, British (0.40%) Internet Software and Services
13,485 Mail.Ru Group Ltd GDR .... 364 0.40 Total Common Stock ........ 88,711 97.94 Preferred Stock (1.18%) Brazil (1.18%) Banks
148,530 Banco Bradesco SA ............ 1,066 1.18 Total Preferred Stock ....... 1,066 1.18
Total Transferable Securities ........................... 89,777 99.12
Russell Investment Company plc Old Mutual Growth Global Equity Fund Schedule of Investments - continued 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Growth Global Equity Fund 597
Fair Value USD ‘000
Fund %
Total Financial Assets at Fair Value through Profit or Loss (99.12%) .......................................................................................... 89,777 99.12
Other Net Assets (0.88%) .............................................................. 798 0.88 Net Assets ........................................................................................ 90,575 100.00
Abbreviation used: ADR - American Depository Receipt GDR - Global Depository Receipt
Analysis of gross assets % of
gross assets Transferable securities admitted to an official stock exchange listing .................................................................... 98.99 Other assets ............................................................................................................................................................. 1.01
100.00
Fair Value Hierarchy (Note 11) All securities held as of 30 September 2018 are classified as Level 1. All securities held as of 31 March 2018 are classified as Level 1 except for unrealised loss on forward foreign currency exchange contracts (which are below USD 500) which are classified as level 2.
Russell Investment Company plc Old Mutual Growth Global Equity Fund Statement of Changes in Composition of Portfolio Listed below are the 20 largest cumulative investment purchases and sales during the six months ended 30 September 2018.
A copy of the list of changes in the portfolio during the reference period may be obtained free of charge from the Company’s Administrator or from the paying agent or paying and information agents in each country of distribution. 598 Old Mutual Growth Global Equity Fund
Portfolio Securities Acquisition Cost
USD ‘000 Portfolio Securities Disposal Proceeds
USD ‘000 Ping an Insurance Group Co of China Ltd 1,425 Amazon.com Inc (1,710) BHP Billiton Plc 993 ABIOMED Inc (1,179) Apache Corp 847 Samsung Electronics Co Ltd (1,141) Service Corp International 650 NVIDIA Corp (787) Just Eat Plc 514 Taiwan Semiconductor Manufacturing Co Ltd ADR (595) Banco Bradesco SA 509 Yandex NV (584) Spotify Technology SA 502 Royal Caribbean Cruises Ltd (563) Zillow Group Inc 489 SAP SE (500) Albemarle Corp 467 Naspers Ltd (489) Chipotle Mexican Grill Inc 465 Lincoln Electric Holdings Inc (416) Meituan Dianping 458 Advanced Micro Devices Inc (395) Sumitomo Mitsui Trust Holdings Inc 453 Moody's Corp (320) Kirby Corp 440 Anthem Inc (319) Mail.Ru Group Ltd GDR 417 OC Oerlikon Corp AG (278) Martin Marietta Materials Inc 405 GrubHub Inc (260) Stericycle Inc 395 SiteOne Landscape Supply Inc (204) Shopify Inc 352 Prudential Plc (181) Epiroc AB 205 Banco Bradesco SA (140) CyberAgent Inc 124 Alibaba Group Holding Ltd ADR (134) Kansai Paint Co Ltd 84 MTN Group Ltd (123)
Russell Investment Company plc Old Mutual Global Emerging Opportunities Fund Balance Sheet As at 30 September 2018
The accompanying notes are an integral part of the financial statements.
Old Mutual Global Emerging Opportunities Fund 599
30 September 2018 (Unaudited)
USD ‘000
31 March 2018 (Audited) USD ‘000
Assets Financial assets at fair value through profit or loss ................................................... 83,167 101,728 Cash at bank (Note 2) ............................................................................................... 1,845 763 Debtors:
Dividends receivable ............................................................................................. 108 365 85,120 102,856 Liabilities Creditors – amounts falling due within one financial year:
(110) (135) Net asset value attributable to redeemable participating shareholders ............. 85,010 102,721
Russell Investment Company plc Old Mutual Global Emerging Opportunities Fund Profit and Loss Account For the six months ended 30 September 2018
The accompanying notes are an integral part of the financial statements. 600 Old Mutual Global Emerging Opportunities Fund
Six months ended 30 September 2018
(Unaudited) USD ‘000
Six months ended 30 September 2017*
(Unaudited) USD ‘000
Income Dividends ................................................................................................................ 1,438 223
Net gain (loss) on investment activities ...................................................................... (19,106) 381 Total investment income (expense) ......................................................................... (17,668) 604 Expenses
Total operating expenses .......................................................................................... (193) (32) Profit (loss) for the financial period before taxation ............................................. (17,861) 572 Taxation (Note 8)
Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations .................................................................. (18,077) 554 All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt with in the Profit and Loss Account. * The Fund launched on 16 August 2017.