The Global Bond (Euro Hedged) Fund to provide income and capital growth.

Transcription

1 RUSSELL INVESTMENT COMPANY II PUBLIC LIMITED COMPANY an umbrella fund with segregated liability between sub-funds Simplified Prospectus 20 April 2012 This Simplified Prospectus contains key information about Russell Investment Company II Public Limited Company (the Company ) which is an umbrella fund with segregated liability between sub-funds established as an open-ended investment company with variable capital and incorporated in Ireland on 1 November The Company is regulated by the Central Bank of Ireland (the Central Bank ) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 and was authorised on 8 November The Company currently has ten sub-funds (each a Fund and collectively the Funds ). Fund Date approved by the Central Bank The Emerging Markets Extended Opportunities Fund 24 March 2011 The Euro Fixed Income Fund 8 November 2000 The Global Bond (Euro Hedged) Fund 8 November 2000 The Pan European Equity Fund 8 November 2001 The U.K. Equity Plus Fund 3 April 2006 The U.S. Equity Plus Fund 3 April 2006 The U.S. Growth Fund 29 November 2001 The U.S. Quant Fund 29 November 2001 The U.S. Value Fund 29 November 2001 The World Equity Fund 28 February 2003 Potential investors are advised to read the prospectus dated 20 April 2012 (the Prospectus ), before making an investment decision. The rights and duties of investors as well as the legal relationship with the Company are laid down in the Prospectus. The Base Currency of the following Funds is Euro: The Euro Fixed Income Fund, The Global Bond (Euro Hedged) Fund and The Pan European Equity Fund. The Base Currency of the following Funds is U.S. Dollar: The Emerging Markets Extended Opportunities Fund, The U.S Equity Plus Fund, The U.S. Growth Fund, The U.S. Quant Fund, The U.S. Value Fund and The World Equity Fund. The Base Currency of The U.K. Equity Plus Fund is Sterling. Capitalised terms shall have the same meanings as in the Prospectus. Investment Objective: The investment objective of each Fund is set out below: The Emerging Markets Extended Opportunities Fund to provide long-term capital appreciation. The Euro Fixed Income Fund to provide income and capital growth. The Global Bond (Euro Hedged) Fund to provide income and capital growth. The Pan European Equity Fund to achieve capital appreciation. FR016/010/AC#

2 The U.K. Equity Plus Fund to provide total returns. The U.S. Equity Plus Fund to achieve capital appreciation. The U.S. Growth Fund to achieve capital appreciation. The U.S. Quant Fund to achieve capital appreciation The U.S. Value Fund to achieve capital appreciation. The World Equity Fund to achieve capital appreciation. Investment Policy: The investment policy of each Fund is set out below: The Emerging Markets Extended Opportunities Fund The Fund s portfolio shall be predominantly (at least two-thirds of its total assets) comprised of Equities and Equity-Related Instruments that are issued by or in respect of companies that: (i) have their registered office in an Emerging Market; or (ii) exercise the predominant part of their economic activity in Emerging Markets ( Emerging Market Companies ). The Equities and Equity-Related Instruments issued by Emerging Market Companies in which the Fund invests shall be listed, traded or dealt on Regulated Markets. Any part of the Fund that is not invested in Equities and Equity-Related Instruments issued by Emerging Market Companies may be invested in other Equities and Equity- Related Instruments listed, traded or dealt in on Regulated Markets, Fixed Income Securities and Instruments, collective investment schemes, Short-Term Instruments, unlisted securities, convertible debt securities in accordance with the investment strategies and restrictions set out in the Prospectus. The Fund may employ investment techniques and financial derivative instruments for efficient portfolio management and/or investment purposes within the limits set out in the Prospectus. The Fund will monitor its use of financial derivative instruments. The level of leverage is expected to be 25% of the Fund s Net Asset Value at any point in time. It is possible that there may be higher leverage level of 50% of the Fund s Net Asset Value during abnormal market conditions and, for example, where there is low volatility generally. Both the expected and higher level of leverage figures are calculated as the sum of the absolute value of notionals of the derivatives used as is required by the Regulations. The Fund may invest no more than 10% of its total assets in Fixed Income Securities and Instruments that are below investment grade and no more than 10% of its total assets in units or shares of open-ended collective investment schemes. The Fund may engage in stock lending at the direction of the Manager provided that such stock lending is conducted with the limits specified by the Central Bank as currently set out in Prospectus. The Fund will invest more than 20% of its total assets in Emerging Markets (and up to 20% of its total assets in Regulated Markets in Russia). Accordingly, an investment in the Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. Please refer to the risk factors set out in the section of the Prospectus titled Risk Factors. The Euro Fixed Income Fund The Fund will invest primarily in Euro denominated transferable debt instruments 2

3 which include, but are not limited to, municipal and government bonds, agency debt (being that issued by local authorities or public international bodies of which one or more States is a member), mortgage related debt and corporate debt that are listed, traded or dealt in on a Regulated Market in the OECD and which may have fixed or floating interest rates. At least two-thirds of the assets of the Fund will be invested in transferable debt instruments. No more than one third of the assets of the Fund will be invested in money market instruments including, but not limited to, T-bills, certificates of deposit, commercial paper, banker s acceptances and letters of credit, whose maturity or interest rate reset period does not exceed 397 days. The Fund will not purchase equity securities but may hold them if they are acquired through a restructuring of a company s debt instruments that are already held by the Fund. Investors should note that the Fund may also invest in transferable debt instruments with non-investment grade ratings or in unrated instruments which are deemed to be of comparable quality. The Fund will not invest more than 30%. of its assets in noninvestment grade instruments. The Fund will be allowed to take positions in currencies other than Euro through the use of techniques described and within the limits set forth in Schedule VII of the Prospectus. The Fund s currency exposure to the Euro will range between 75 and 125%. of the Fund s net assets, leveraging through investment in financial derivative instruments. The Global Bond (Euro Hedged) Fund The Fund will invest primarily in transferable debt instruments denominated in a variety of currencies, which include but are not limited to, municipal and government bonds, agency debt (being that issued by local authorities or public international bodies of which one or more States is a member), mortgage related debt and corporate debt that are listed, traded or dealt in on a Regulated Market in the OECD and which may have fixed or floating interest rates. At least two-thirds of the assets of the Fund will be invested in transferable debt instruments. No more than one third of the assets of the Fund will be invested in money market instruments including, but not limited to, T-bills, certificates of deposit, commercial paper, banker s acceptances and letters of credit, whose maturity or interest rate reset period does not exceed 397 days. The Fund will not purchase equity securities but may hold them if they are acquired through a restructuring of a company s debt instruments that are already held by the Fund. Investors should note that the Fund may also invest in transferable debt instruments with non-investment grade ratings or in unrated instruments which are deemed to be of comparable quality. The Fund will not invest more than 30%. of its assets in noninvestment grade instruments. The Fund will be allowed to take positions in currencies other than Euro through the use of techniques described and within the limits set forth in Schedule VII of the Prospectus. The Fund s currency exposure to Euro will range between 75 and 125%. of the Fund s net assets, leveraging through investment in financial derivative instruments. The Pan European Equity Fund The Fund will invest principally in equity securities listed on Regulated Markets in Europe. At least 75%. of the Fund s net assets will be invested in issuers based in the EU, Norway and Iceland. The Fund may also invest in new issues for which application for listing on a Regulated Market in Europe will be sought. The Fund may hold such securities listed or traded on Regulated Markets worldwide of companies 3

4 that are not incorporated, listed or traded in Europe but which receive the majority of their total revenue from European countries. The Fund will not be concentrating on any specific industry sector but will pursue a policy of active stock selection and active country allocation on the Regulated Markets in which it invests. For efficient portfolio management purposes, the Fund may engage in currency hedging transactions to hedge against exchange rate risk within the limits set forth in Schedule VII of the Prospectus. The Fund will carry out spot foreign exchange transactions to meet its investment requirements. The U.K. Equity Plus Fund The Fund will invest in a portfolio of predominantly U.K. equities traded on U.K. stock exchanges, including convertibles, warrants, money market instruments, deposits and collective investment schemes. The Fund will seek to achieve its investment objective by investing in derivative instruments that have as their underlying exposure the foregoing (e.g. swaps and contracts for differences) and may implement bought (long) and synthetic short (sold) positions through the use of derivatives. Money market instruments may include but are not limited to commercial paper issued by corporate entities; certificates of deposit; bankers acceptances; Treasury bills; short corporate bonds (securities with less than one year to maturity); money market funds. The investments will be selected with a view to achieving the Fund s objective of providing total returns and focussed stock selection. In addition to investing in the foregoing instruments, the Fund may also invest up to 30%. of its net assets in non-u.k. equities. The Fund may also invest in new issues for which application for listing on a Regulated Market will be sought. Investment in money market instruments will not exceed 20%. of the net assets of the Fund. Investment in collective investment schemes will not exceed 10%. of the net assets of the Fund. At all times, at least two thirds of the Fund s net assets will be invested in the foregoing instruments (excluding convertibles) of issuers domiciled in the U.K. An investment in The U.K. Equity Plus Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. The U.S. Equity Plus Fund The Fund will invest principally in equities and derivatives including without limitation, American depository receipts, global depository receipts, common stock, convertibles and warrants, listed on Regulated Markets in the U.S. The Fund will seek to achieve its investment objective by investing in derivative instruments that have as their underlying exposure the foregoing (e.g. swaps and contracts for differences) and may implement bought (long) and synthetic short (sold) positions through the use of derivatives. The Fund may invest up to a maximum of 20%. of its net assets in securities traded on Regulated Markets outside the U.S. The Fund may also invest in new issues for which application for listing will be sought on a Regulated Market within one year of their issue. The Fund may hold such securities of companies listed or traded on Regulated Markets worldwide that are not incorporated, listed or traded in the U.S. but which receive the majority of their total revenue from the U.S. Investments in convertibles may not exceed 25%. of The U.S. Equity Plus Fund s net assets. The Fund may invest up to 10%. of its net assets in collective investment schemes within the meaning of Regulations 45(e) of the Regulations. An investment in The U.S. Equity Plus Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. 4

5 The U.S. Growth Fund The Fund will invest primarily in U.S. equity securities, including common stock, American depositary receipts, global depositary receipts, convertibles and warrants listed, traded or dealt in on a Regulated Market in the U.S. The Fund may invest in new issues for which application for listing on a Regulated Market will be sought. The Fund may also hold such securities of companies that are not incorporated, listed or traded in the U.S. but which receive the majority of their total revenue from the U.S. At all times, at least two-thirds of the Fund s net assets will be invested in the foregoing instruments (excluding convertibles) of issuers domiciled in the U.S. The Fund will be diversified and will pursue a policy of active stock selection with an emphasis on stocks with above average earnings growth and favourable earnings momentum. The U.S. Quant Fund The Fund will invest primarily in U.S. equity securities, including common stock, American depositary receipts, global depositary receipts, convertibles and warrants listed, traded or dealt in on a Regulated Market in the U.S. The Fund will seek to achieve its investment objective by investing in derivative instruments that have as their underlying exposure the foregoing (e.g. swaps and contracts for differences) and may implement bought (long) and synthetic short (sold) positions through the use of derivatives. The Fund may invest in new issues for which application for listing on a Regulated Market will be sought. The Fund may also hold securities of such companies that are not incorporated, listed or traded in the U.S. but which receive the majority of their total revenue from the U.S. At all times, at least twothirds of the Fund s net assets will be invested in the foregoing instruments (excluding convertibles) of issuers domiciled in the U.S. The Fund will be highly diversified and, therefore, will not be concentrating on any specific industry sectors but will pursue a policy of active stock selection in the markets, with an emphasis on quantitative methods of security selection and/or portfolio construction. These methods employ investment models incorporating mathematical formulae based on statistical analysis. The U.S. Value Fund The Fund will invest primarily in U.S. equity securities, including common stock, American depositary receipts, global depositary receipts, convertibles and warrants listed, traded or dealt in on a Regulated Market in the U.S. The Fund may invest in new issues for which application for listing on a Regulated Market will be sought. The Fund may also hold such securities listed or traded on Regulated Markets worldwide of companies that are not incorporated, listed or traded in the U.S. but which receive the majority of their total revenue from the U.S. At all times, at least two-thirds of the Fund s net assets will be invested in the foregoing instruments (excluding convertibles) of issuers domiciled in the U.S. The Fund will be diversified and will pursue a policy of active stock selection with an emphasis on stocks that appear to be undervalued on the basis of earnings, cashflow or private market value, in the markets in which it operates. The World Equity Fund The Fund will invest predominantly in equity securities, including common stock, convertibles and warrants, listed, traded or dealt in on any Regulated Market worldwide. The Fund may also invest in new issues for which application for listing on a Regulated Market will be sought in accordance with Section 2.2 of Schedule VI of the Prospectus entitled Investment Restrictions. The Fund may hold not more than 20%. of its net assets in equity securities of companies whose securities are listed, traded or dealt in on any Regulated Market in the Emerging Markets. The World Equity Fund will not be concentrating on any specific markets or industry sectors but will pursue a policy of active stock, sector and country allocation on the Regulated Markets in which it invests. 5

6 General Each Fund may employ investment techniques and financial derivative instruments for efficient portfolio management and/or investment purposes within the limits set forth in Schedule VII of the Prospectus as described in the section of the Prospectus entitled Investment Techniques and Financial Derivative Instruments. Risk Profile: The following risk factors apply to the Funds: The value of an investment in a Fund may fall as well as rise. There can be no assurance that each Fund will achieve its investment objective or that a Shareholder will recover the full amount invested in each Fund. Prices of equities fluctuate daily dependent on market conditions. Markets can be influenced by a series of factors such as political and economic news, corporate earnings reports, demographic trends, catastrophic events and wider market expectations. It is worth noting that the value of equities can fall as well as rise and investors into equities funds may not get back the amount that was originally invested. Potentially a Fund investing in equities could incur significant losses. Below investment grade debt securities are speculative and involve a greater risk of default and price changes due to changes in the issuer s creditworthiness. The market prices of these debt securities fluctuate more than investment grade debt securities and may decline significantly in periods of general economic difficulty. The market for such securities may not be liquid at all times. In a relatively illiquid market a Fund may not be able to acquire or dispose of such securities quickly and as such a Fund may experience adverse price movements upon liquidation of its investments. Settlement of transactions may also be subject to delay and administrative uncertainties. Each Fund will be exposed to a credit risk on parties with whom it trades and will also bear the risk of settlement default. The Company s investments may be acquired in a wide range of currencies and changes in exchange rates between currencies may cause the value of an investment in the Company to fluctuate. There can be no assurance that should an action be brought against the Company in the courts of another jurisdiction, the segregated nature of the Funds would necessarily be upheld. Financial derivative instruments ( FDI ) involve risks different from and in certain cases greater than, the risks presented by more traditional investments. Each Fund may enter transactions in OTC markets that expose it to the credit of its counterparties and their ability to satisfy the terms of such contracts. Since many FDIs have a leverage component, adverse changes in the value or level of the underlying asset, rate or index can result in a loss substantially greater than the amount invested in the derivative itself. Certain FDIs have the potential for unlimited loss regardless of the size of the initial investment. The Funds may from time to time use both exchange-traded and over the counter futures and options as part of its investment policy or for hedging purposes. These instruments are highly volatile, involve certain special risks and expose investors to a high risk of loss. The low initial margin deposits normally required to establish a futures position permit a high degree of leverage. As a result, a relatively small movement in the price of a futures contract may result in a profit or a loss which is 6

7 high in proportion to the amount of funds actually placed as initial margin and may result in un-quantifiable further loss exceeding any margin deposited. As this is a multi-manager scheme, accordingly investment management of each Fund will be carried out by a number of Money Managers each managing separate portfolios of assets within the Fund. It is therefore possible that performance fees in respect of the performance achieved by one or more of those Money Managers may be payable by the Fund to one or more of the Money Managers even though the overall Net Asset Value of the Fund, representing the aggregate performance of all the Money Managers, may not have increased. There is a risk that the accrual of performance fees in the Fund may not be entirely equitable between different Shareholders. A portion of the assets of a Fund, particularly The Emerging Markets Extended Opportunities Fund, The World Equity Fund and The Global Bond (Euro Hedged) Fund, may be invested in emerging markets. Emerging Markets are typically those of less developed countries which exhibit lower levels of economic and/or capital market development, and higher levels of share price and currency volatility. The risks involved in emerging market investment are likely to exceed the risks of investment in more mature markets. Funds that have significant exposures to Emerging Markets may only be suitable for well informed investors. A Fund may lend its portfolio securities to broker-dealers and banks in order to generate additional income for that Fund. In the event of bankruptcy or other default of a borrower of portfolio securities a Fund could experience both delays in liquidating the loan collateral or recovering the loaned securities and losses. A more detailed description of the risk factors that apply to the Funds is set out in the Prospectus. Performance Data: Profile of a Typical Investor: Performance data for each Fund is set out in Appendix 1 to this Simplified Prospectus. The following table sets out the suitability of each Fund for investors, by stating: (i) what type of return the investor should seek to achieve by investing in each Fund; (ii) over what time period the investor should invest in the Fund for; and (iii) the level of volatility an investor should be prepared to accept. Fund: Suitable for investors seeking: Over a time horizon of: Level of volatility: Growth Income The Emerging Markets Extended - 5 to 7 years Moderate - High Opportunities Fund The Euro Fixed Income Fund 5 to 7 years Moderate The Global Bond (Euro Hedged) - 5 to 7 years Moderate Fund The Pan European Equity Fund - 5 to 7 years Moderate - High The U.K. Equity Plus Fund - 5 to 7 years High The U.S. Equity Plus Fund - 5 to 7 years High The U.S. Growth Fund - 5 to 7 years Moderate - High The U.S. Quant Fund - 5 to 7 years Moderate - High 7

8 The U.S. Value Fund - 5 to 7 years Moderate - High The World Equity Fund - 5 to 7 years Moderate - High Distribution Policy: Each of the Funds may issue Income Class Shares, Accumulation Class Shares or Roll-Up Class Shares. All Share Classes are Accumulation Class Shares unless otherwise indicated in the name of the Share Class. Income Class Shares are shares that distribute net income from time to time, subject to Directors discretion on the Distribution Date. The amount of any distribution on different Classes of Income Class Shares in a Fund may vary to reflect any differing charges and expenses suffered by such Share Classes. Any such distribution shall be made from net income. Accumulation Class Shares are shares that declare a distribution but whose net income is then reinvested in the capital of the relevant Fund on the Distribution Date, thereby increasing the Net Asset Value per Share for an Accumulation Class Share relative to an Income Class Share. Roll-Up Class Shares do not declare or distribute net income and the Net Asset Value therefore reflects net income. Fees And Expenses: The following fees and expenses will be borne by the Company (expressed as a maximum annual percentage of average daily Net Asset Value, except as otherwise noted) which fees shall accrue daily and be paid monthly in arrears: Manager fees Please note that the maximum management fee for any Fund is 2.50%. per annum of the Net Asset Value of the relevant Fund excluding any Performance Fee to be paid to the Manager as described below. The Manager shall discharge all fees payable to the Adviser and Distributor out of its management fee. The Adviser and Distributor shall discharge all fees payable to the Money Managers. Performance Fees With the exception of The Euro Fixed Income Fund, a performance fee (the Performance Fee ) may be payable to the Manager in respect of each Fund on an annual basis (the Performance Period ) that is equal to the sum of Performance Fees to be paid to the Fund s Money Managers as described more fully below. Any Performance Fee paid to the Manager shall be paid in its entirety to the Adviser and Distributor, which in turn shall pay the entire Performance Fee to those Money Managers for the Fund that are entitled to a Performance Fee. A Performance Fee is payable to a Money Manager only with respect to the value added for that part of a Fund (the Portfolio ) for which that Money Manager is responsible from the time the Adviser and Distributor appoints that Money Manager to manage the Portfolio until such time, if ever, that the Money Manager ceases to manage the Portfolio (the Term of Appointment ). Administrator, Custodian and Trustee and Paying Agent fees The Company shall pay the fees of the Administrator and the Custodian and Trustee and all of the reasonable out of pocket expenses properly incurred by them. All transactions fees payable to the Custodian and Trustee and the sub-custodians (which shall be charged at normal commercial rates) shall be paid by the Company. The Company shall reimburse the Custodian and Trustee for reasonable fees paid to 8

9 any sub-custodian. In relation to The Emerging Markets Extended Opportunities Fund, fees payable to sub-custodians are not included in the percentage cap set out in the table below under the heading Aggregate Administration, Custodian and Trusteeship Fees as a percentage of NAV per annum. Out of pocket expenses of the Administrator and the Custodian and Trustee may be paid by the Funds. The Company will pay Marcard, Stein & Co AG, Deutsche Bank AG, Amsterdam Branch, BNP Paribas Securities Services, Milan Branch, UniCredit Bank Austria AG, SGSS S.p.A. and Société Générale fees for various services as paying agent, information agent, correspondence agent and representative as detailed in the Prospectus. Dilution Adjustment and Sale Charge A dilution adjustment may be payable on subscriptions and/or repurchases. A more detailed description of this dilution adjustment is contained in the Prospectus. Redemption Charge: none Switching Charge: 5%. Fund Range of Aggregate of Management Fees as Administration, Custodian a percentage and Trusteeship Fees as a of NAV per Class per percentage of NAV per annum Fund per annum The Emerging Markets Extended 1.30% up to 0.30% Opportunities Fund The Euro Fixed Income Fund 0.32 to 1.80% up to 0.20% The Global Bond (Euro Hedged) Fund 0.40 to 2.00% up to 0.20% The Pan European Equity Fund 0.40 to 2.30% up to 0.20% The U.K. Equity Plus Fund 0.60 to 2.30% up to 0.20% The U.S. Equity Plus Fund 0.53 to 1.55% up to 0.20% The U.S. Growth Fund 0.46 to 2.00% up to 0.20% The U.S. Quant Fund 0.35 to 2.00% up to 0.20% The U.S. Value Fund 0.37 to 2.00% up to 0.20% The World Equity Fund 0.58 to 2.60% up to 0.25% Total Expense Ratios for the year ending 31 March 2011 The Euro Fixed Income Fund Class A 1.18% Class B 0.96% Class F 1.77% Class I 0.76% Class I Income 0.76% Class MZ Income 0.56% Class P Income 1.16% Class S 1.16% The Global Bond (Euro Hedged) Fund Class A 1.63% Class B 1.04% Class DH-B 1.04% Class I 0.79% Class I Income 0.79% Class MZ Income 0.54% The Pan European Equity Fund Class A 1.88% Class B 1.28% 9

10 Class F 2.08% Class I 1.18% Class MZ Income 0.68% Class PAMEU 2.58% Class R Roll-up 1.53% The U.K. Equity Plus Fund Class B 1.35% Class C 1.95% Class I Income 1.35% Class K 1.95% Class P Income 1.95% Class R 1.52% The U.S. Growth Fund Class A Income 1.73% Class B 1.13% Class C 1.73% Class I 1.13% Class I Income 1.14% The U.S. Quant Fund Class B 1.17% Class C 1.77% Class I 0.98% Class P Income 1.67% Class R Roll up 1.37% The U.S. Value Fund Class A Income 1.72% Class B 1.12% Class C 1.72% Class I 1.12% Class I Income 1.12% The World Equity Fund Class B 1.00% Class C 1.71% Class D 0.86% Class EH T 1.25% Class I 1.00% Class J 1.70% Class N 2.41% Class R 1.54% Class SH - B 1.05% Class TDCNV Income 0.68% Class TUBS 0.87% Class TYA 0.78% Class TYC 0.15% Class TYHC 0.10% There is no total expense ratio information for the year ended 31 March 2011 for The Emerging Markets Extended Opportunities Fund and The U.S. Equity Plus Fund as no shares were in issue during the relevant period. Historical information on the total expense ratio can be obtained from the Manager or the Administrator. Portfolio Turnover Rates for the year ending 31 March 2011 The Euro Fixed Income Fund 603% The Global Bond (Euro Hedged) Fund 836% The Pan European Equity Fund 553% The UK Equity Plus Fund 336% The U.S. Growth Fund 883% The U.S. Quant Fund 643% The U.S. Value Fund 501% The World Equity Fund 491% 10

11 There are no portfolio turnover rates for the year ended 31 March 2011 for The Emerging Markets Extended Opportunities Fund and The U.S. Equity Plus Fund as no shares were in issue during the relevant period. Historical information on the portfolio turnover rate can be obtained from the Manager or the Administrator. Taxation: The Company is resident in Ireland for tax purposes and is not subject to Irish taxation charges on income and capital gains. No Irish stamp duty is payable on the issue, redemption, conversion or transfer of Shares in the Company. Shareholders and potential investors should consult with their professional advisers in relation to the tax treatment of their holdings in the Company. Publication Of Share Price: How To Buy, Sell Or Convert Shares: Except where the determination of the Net Asset Value has been suspended, the latest Net Asset Value per Share of each Fund shall be made available at the registered office of the Administrator at 78 Sir John Rogerson s Quay, Dublin 2, Ireland on each Dealing Day and shall be published (so far as is practicable) daily on the first Business Day after the Dealing Day on Bloomberg ( a public website. You can buy, sell or convert Shares in a Fund of the Company by contacting the Manager or its agents and completing a subscription, redemption or conversion form as appropriate. Subscription and redemption applications may be received by facsimile or electronic means. Additional Important Information: Promoter: Frank Russell Company Manager: Russell Investments Ireland Limited Adviser, Distributor and UK Facilities Agent: Russell Investments Limited Custodian: State Street Custodial Services (Ireland) Limited Administrator: State Street Fund Services (Ireland) Limited Auditors: PricewaterhouseCoopers Additional information and copies of the Prospectus, the latest annual and half-yearly reports and application forms may be obtained free of charge from the registered office of the Company or the Manager. 11

12 Appendix 1 PERFORMANCE DATA Please note that past performance is not necessarily a guide to the future performance of the Company. The data is exclusive of subscription and redemption fees. The Euro Fixed Income Fund Past 3 years: 3.41% Past 5 years: 1.84% Past 10 years: N/A Performance in Euro The Euro Fixed Income Fund launched in June 2001 The Global Bond (Euro Hedged) Fund Past 3 years: 6.48% Past 5 years: 4.46% Past 10 years: 4.34 Performance in Euro The Global Bond (Euro Hedged) Fund launched in November

13 The Pan European Equity Fund Past 3 years: -1.07% Past 5 years: -2.36% Past 10 years: Performance in Euro The Pan European Equity Fund launched in November 2000 The U.S. Quant Fund Past 3 years: 1.11% Past 5 years: 0.51% Past 10 years: N/A Performance in U.S. Dollars The U.S. Quant Fund launched in December 2001 The U.S. Growth Fund Past 3 years: 0.43% Past 5 years: 0.43% Past 10 years: N/A Performance in U.S. Dollars The U.S. Growth Fund launched in December

14 The U.S. Value Fund Past 3 years: -1.67% Past 5 years: -0.24% Past 10 years: N/A Performance in U.S. Dollars The U.S. Value Fund launched in December 2001 The World Equity Fund Past 3 years: 1.92% Past 5 years: 3.55% Past 10 years: N/A Performance in U.S. Dollars The World Equity Fund launched in June 2004 The UK Equity Plus Fund Past 3 years: 4.35% Past 5 years: 3.93 % Past 10 years: N/A Performance in Sterling The UK Equity Plus Fund launched in April 2006 There is no performance information for the year ending 31 March 2011 for The Emerging Markets Extended Opportunities Fund and The U.S. Equity Plus Fund as no shares were in issue for the relevant period. Past performance data of the other Share Classes in the Funds is available from the Manager upon request. 14