<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 24F-2
ANNUAL NOTICE OF SECURITIES SOLD
PURSUANT TO RULE 24F-2
Read instructions at end of Form before preparing Form.
Please print or type.
1. Name and address of issuer:
FRANK RUSSELL INVESTMENT COMPANY
2. Name of each series or class of funds for which this notice is filed:
SEE ATTACHED INSERT A
3. Investment Company Act File Number: 811-3153
Securities Act File Number: 2-71299
4. Last day of fiscal year for which this notice is filed:
12/31/95
5. Check box if this notice is being filed more than 180 days after the
close of the issuer's fiscal year for purposes of reporting securities
sold after the close of the fiscal year but before termination of the
issuer's 24f-2 declaration:
/ /
6. Date of termination of issuer's declaration under rule 24f-2(a)(1), if
applicable (see instruction A.6):
N/A
7. Number and amount of securities of the same class or series which had been
registered under the Securities Act of 1933 other than pursuant to rule
24f-2 in a prior fiscal year, but which remained unsold at the beginning of
the fiscal year:
0
8. Number and amount of securities registered during the fiscal year other
than pursuant to rule 24f-2:
0
<PAGE> 2
9. Number and aggregate sale price of securities sold during the fiscal year:
SEE ATTACHED INSERT B
10. Number and aggregate sale price of securities sold during the fiscal year
in reliance upon registration pursuant to rule 24f-2:
SEE ATTACHED INSERT B
11. Number and aggregate sale price of securities issued during the fiscal year
in connection with dividend reinvestment plans, if applicable (see
Instruction B.7):
SEE ATTACHED INSERT C
12. Calculation of registration fee:
<TABLE>
<S> <C> <C>
(i) Aggregate sale price of securities sold during the
fiscal year in reliance on rule 24f-2 (from Item 10): $ 7,776,874,063
(ii) Aggregate price of shares issued in connection with
dividend reinvestment plans (from Item 11, if
applicable): + 464,152,962
(iii) Aggregate price of shares redeemed or repurchased
during the fiscal year (if applicable): - 7,471,427,496
(iv) Aggregate price of shares redeemed or repurchased and
previously applied as a reduction to filing fees
pursuant to rule 24e-2 (if applicable): + 0
(v) Net aggregate price of securities sold and issued
during the fiscal year in reliance on rule 24f-2
[line (i), plus line (ii), less line (iii), plus line
(iv)] (if applicable): 769,599,529
(vi) Multiplier prescribed by Section 6(b) of the
Securities Act of 1933 or other applicable law or
regulation (see Instruction C.6): x 1/2900
(vii) Fee due [line (i) or line (v) multiplied by line
(vi)]: 265,379.15
</TABLE>
Instruction: Issuers should complete lines (ii), (iii), (iv), and (v) only
if the form is being filed within 60 days after the close of
the issuer's fiscal year. See Instruction C.3.
<PAGE> 3
13. Check box if fees are being remitted to the Commission's lockbox depository
as described in section 3a of the Commission's Rules of Informal and Other
Procedures (17 CFR 202.3a).
|X|
Date of mailing or wire transfer of filing fees to the Commission's lockbox
depository:
FEBRUARY 27, 1996
Signatures
This report has been signed below by the following persons on behalf of the
issuer and in the capacities and on the dates indicated.
By (Signature and Title)* /s/ Deedra S. Walkey
----------------------------
Deedra S. Walkey, Assistant Secretary
Date: February 28, 1996
* Please print the name and title of the signing officer below the signature.
<PAGE> 4
Insert A
Equity I Fund
Equity II Fund
Equity III Fund
Equity Q Fund
International Fund
Emerging Markets Fund
Fixed Income I Fund
Fixed Income II Fund
Fixed Income III Fund
Money Market Fund
Diversified Equity Fund
Special Growth Fund
Equity Income Fund
Quantitative Equity Fund
International Securities Fund
Real Estate Securities Fund
Diversified Bond Fund
Volatility Constrained Bond Fund
Multistrategy Bond Fund
Limited Volatility Tax Free Fund
U.S. Government Money Market Fund
Tax Free Money Market Fund
<PAGE> 5
Insert B
<TABLE>
<CAPTION>
- ------------------------------------ --------------------- ---------------------------
AGGREGATE SALE
PRICE OF
FUND NUMBER OF SHARES SECURITIES SOLD
- ------------------------------------ --------------------- ---------------------------
<S> <C> <C>
Equity I 8,042,540 $ 218,753,104
- ------------------------------------ --------------------- ---------------------------
Equity II 3,638,096 101,842,162
- ------------------------------------ --------------------- ---------------------------
Equity III 1,995,925 55,610,295
- ------------------------------------ --------------------- ---------------------------
Equity Q 6,435,805 185,897,050
- ------------------------------------ --------------------- ---------------------------
Fixed I 13,120,392 272,492,800
- ------------------------------------ --------------------- ---------------------------
Fixed II 5,221,430 96,387,044
- ------------------------------------ --------------------- ---------------------------
Fixed III 10,309,335 102,755,822
- ------------------------------------ --------------------- ---------------------------
International 7,634,975 268,170,782
- ------------------------------------ --------------------- ---------------------------
Emerging Markets 8,376,850 94,656,077
- ------------------------------------ --------------------- ---------------------------
Money Market 4,628,769,576 4,628,769,576
- ------------------------------------ --------------------- ---------------------------
Diversified Equity 4,083,541 150,019,014
- ------------------------------------ --------------------- ---------------------------
Special Growth 3,140,651 117,908,654
- ------------------------------------ --------------------- ---------------------------
Equity Income 1,419,456 52,652,979
- ------------------------------------ --------------------- ---------------------------
Quantitative Equity 4,324,277 124,379,767
- ------------------------------------ --------------------- ---------------------------
Diversified Bond 7,173,629 163,517,029
- ------------------------------------ --------------------- ---------------------------
Volatility Constrained Bond 4,380,834 83,390,317
- ------------------------------------ --------------------- ---------------------------
Multistrategy Bond 9,709,055 94,838,687
- ------------------------------------ --------------------- ---------------------------
International Securities 3,789,941 207,530,515
- ------------------------------------ --------------------- ---------------------------
Limited Volatility Tax Free 1,982,132 41,531,111
- ------------------------------------ --------------------- ---------------------------
Real Estate Securities 4,842,544 108,140,650
- ------------------------------------ --------------------- ---------------------------
U.S. Gov't Money Market 474,116,728 474,116,728
- ------------------------------------ --------------------- ---------------------------
Tax Free Money Market 133,513,900 133,513,900
- ------------------------------------ --------------------- ---------------------------
- ------------------------------------ --------------------- ---------------------------
Series Total 5,346,021,612 $ 7,776,874,063
- ------------------------------------ ------------------------ ---------------------------
</TABLE>
<PAGE> 6
Insert C
<TABLE>
<CAPTION>
- ---------------------------- --------------------------------------- ---------------------------------------
AGGREGATE SALE
PRICE OF
FUND NUMBER OF SHARES SECURITIES SOLD
- ---------------------------- --------------------------------------- ---------------------------------------
<S> <C> <C>
Equity I 2,917,909 $ 80,302,078
- ---------------------------- --------------------------------------- ---------------------------------------
Equity II 938,560 26,562,854
- ---------------------------- --------------------------------------- ---------------------------------------
Equity III 841,738 24,119,117
- ---------------------------- --------------------------------------- ---------------------------------------
Equity Q 1,857,979 55,099,559
- ---------------------------- --------------------------------------- ---------------------------------------
Fixed I 1,572,860 32,941,373
- ---------------------------- --------------------------------------- ---------------------------------------
Fixed II 498,074 9,137,877
- ---------------------------- --------------------------------------- ---------------------------------------
Fixed III 1,373,663 13,707,352
- ---------------------------- --------------------------------------- ---------------------------------------
International 885,952 31,552,804
- ---------------------------- --------------------------------------- ---------------------------------------
Emerging Markets 90,071 985,053
- ---------------------------- --------------------------------------- ---------------------------------------
Money Market 1,601,278 1,601,278
- ---------------------------- --------------------------------------- ---------------------------------------
Diversified Equity 1,155,887 44,249,578
- ---------------------------- --------------------------------------- ---------------------------------------
Special Growth 483,880 18,530,761
- ---------------------------- --------------------------------------- ---------------------------------------
Equity Income 338,403 12,788,889
- ---------------------------- --------------------------------------- ---------------------------------------
Quantitative Equity 1,137,910 34,236,981
- ---------------------------- --------------------------------------- ---------------------------------------
Diversified Bond 841,387 19,186,853
- ---------------------------- --------------------------------------- ---------------------------------------
Volatility Constrained Bond 400,321 7,621,504
- ---------------------------- --------------------------------------- ---------------------------------------
Multistrategy Bond 1,058,466 10,420,169
- ---------------------------- --------------------------------------- ---------------------------------------
International Securities 370,011 20,569,490
- ---------------------------- --------------------------------------- ---------------------------------------
Limited Volatility Tax Free 76,958 1,614,988
- ---------------------------- --------------------------------------- ---------------------------------------
Real Estate Securities 548,366 12,360,832
- ---------------------------- --------------------------------------- ---------------------------------------
U.S. Gov't Money Market 5,695,155 5,695,155
- ---------------------------- --------------------------------------- ---------------------------------------
Tax Free Money Market 868,417 868,417
- ---------------------------- --------------------------------------- ---------------------------------------
- ---------------------------- --------------------------------------- ---------------------------------------
Series Total 25,553,245 $464,152,962
- ---------------------------- --------------------------------------- ---------------------------------------
</TABLE>
<PAGE> 7
STRADLEY RONON STEVENS & YOUNG, LLP
2600 One Commerce Square
Philadelphia, Pennsylvania 19103-7098
(215) 564-8000
Direct Dial: (215) 564-8074
February 23, 1996
Frank Russell Investment Company
909 A. Street
P.O. Box 1591
Tacoma, Washington 98402
Gentlemen:
Frank Russell Investment Company (the "Company") is a
Massachusetts Business Trust existing under the laws of the Commonwealth of
Massachusetts which is the successor to the business of a Maryland corporation
of the same name (the "Corporation"). This firm acted as legal counsel for the
Corporation during and subsequent to its incorporation and during its
registration under the Investment Company Act of 1940, as amended ("1940 Act")
and the registration of its shares under the Securities Act of 1933, as amended
("1933 Act"), and has continued to the date hereof to act as the Company's
legal counsel.
We have examined the Corporation's Articles of Incorporation
and By-laws; its Notification of Registration on Form N-8A under the 1940 Act,
and its Registration Statements under the 1933 Act and the 1940 Act (both on
Form N-l and as more recently amended on Form N-1A), and the Company's Master
Trust Agreement dated July 26, 1984 and its By-laws, all as amended to the date
of this opinion; and such other documents, including the minutes of Trustees'
meetings, which we deem necessary or appropriate to this opinion.
<PAGE> 8
Frank Russell Investment Company
February 23, 1996
Page 2
The Master Trust Agreement establishing the Company authorizes
the Company to issue an unlimited number of shares of beneficial interest, and
created seven Sub-Trusts, each authorized to issue without specific allocation
an unlimited number of shares of beneficial interest of the par value of one
cent ($.01) per share. Their names are Equity I Fund; Equity II Fund; Equity
III Fund; Fixed Income I Fund; Fixed Income II Fund; International Fund; and
Money Market Fund. In addition, the company, by proper action, amended the
Master Trust Agreement on May 29, 1985, to create eight new Sub-Trusts, again
with authority for each to issue without specific allocation an unlimited
number of shares of beneficial interest. These Sub-Trusts are named:
Diversified Equity Fund; Special Growth Fund; Equity Income Fund; Diversified
Bond Fund; Volatility Constrained Bond Fund; International Securities Fund; US
Government Money Market Fund; and Limited Volatility Tax Free Fund. The
Company has authority to establish, by action of the Trustees without
shareholder approval, additional Sub-Trusts. By authority of the Trustees at
their January 26, 1987 meeting, Amendment No. 3 to the Amended Master Trust
Agreement was adopted and ordered filed; this designated four additional
Sub-Trusts named, respectively, Tax Free Money Market Fund, Quantitative Equity
Fund, Russell 1000 Index Fund, and Equity Q Fund. On January 23, 1989, the
Company's Trustees executed Amendment No. 4 to the Amended Master Trust
Agreement establishing a new Sub-Trust designated the "Real Estate Securities
Fund." All but the Sub-Trust designated Russell 1000 Index Fund were activated
prior to 1990. On May 11, 1992, the Trustees executed Amendment No. 5 to the
Amended Master Trust Agreement to establish the Emerging Markets Fund, the
Fixed Income III Fund, and the Multistrategy Bond Fund as Sub-Trusts.
An indefinite number of shares of all classes, series and
Sub-Trusts in the aggregate has been registered by the Company and its
predecessor under the 1933 Act since the effectiveness of its 1933 Act
Registration Statement on October 15, 1981, pursuant to Section 24(f) of the
1940 Act and Rule 24f-2. By proper action, the Company adopted the
Corporation's Registration Statements as its own.
You have now advised us, under cover of Mary E. Hughs' letter
of February 21, 1996, that in addition to shares issued as income dividends or
capital gains, during the Company's fiscal year ended December 31, 1995, the
Company issued shares of beneficial interest from each series (in number and of
an aggregate public offering price) as set forth in the following table, and
that the Company will file a Rule 24f-2 Notice with
<PAGE> 9
Frank Russell Investment Company
February 23, 1996
Page 3
the U.S. Securities and Exchange Commission to make definite the registration
of these shares:
<TABLE>
<CAPTION>
Fund Number of Shares Amount Sold
---- ---------------- -----------
<S> <C> <C>
Equity I 8,042,540 $ 218,753,104
Equity II 3,638,096 101,842,162
Equity III 1,995,925 55,610,295
Equity Q 6,435,805 185,897,050
International 7,634,975 268,170,782
Emerging Markets 8,376,850 94,656,077
Fixed Income I 13,120,392 272,492,800
Fixed Income II 5,221,430 96,387,044
Fixed Income III 10,309,335 102,755,822
Money Market 4,628,769,576 4,628,769,576
Diversified Equity 4,083,541 150,019,014
Special Growth 3,140,651 117,908,654
Equity Income 1,419,456 52,652,979
Quantitative Equity 4,324,277 124,379,767
International Securities 3,789,941 207,530,515
Diversified Bond 7,173,629 163,517,029
Volatility Constrained Bond 4,380,834 83,390,317
Multistrategy Bond 9,709,055 94,838,687
Limited Volatility Tax Free 1,982,132 41,531,111
Real Estate Securities Fund 4,842,544 108,140,650
U.S Government Money Market 474,116,728 474,116,728
Tax Free Money Market 133,513,900 133,513,900
------------- --------------
TOTAL 5,346,021,612 $7,776,874,063
============= ==============
</TABLE>
The Company has now requested the opinion of this firm in
order to comply with the Notice requirements of the said Rule and for the
purpose of completing the registration under the 1933 Act of the shares of the
various classes, series or Sub-Trusts of the Company sold during the fiscal
year as enumerated in the table above. You have advised us that all of such
shares were sold in accordance with the Company's usual method of distributing
its registered shares, whereby currently effective prospectuses are made
available for delivery to offerees and purchasers of shares in accordance with
Section 5(b) of the 1933 Act.
Based upon the foregoing information and examination, it is
our opinion that the Company is a valid and subsisting Massachusetts Business
Trust under the laws of the Commonwealth of Massachusetts, that the
registration of the shares of
<PAGE> 10
Frank Russell Investment Company
February 23, 1996
Page 4
beneficial interest of the several series, classes or Sub-Trusts of the Company
was proper, that such shares which were issued for a consideration which was
deemed by the Board of Trustees consistent with the Master Trust Agreement as
amended, were legally issued, fully-paid, and non-assessable shares of
beneficial interest, and that the holders of such shares had all the rights
provided for with respect to such shares by the Master Trust Agreement, as
amended, and the laws of the Commonwealth of Massachusetts. As noted in the
Company's Statement of Additional Information, under certain unlikely
circumstances a holder of shares of a Massachusetts business trust may be held
personally liable for obligations of the trust. The Master Trust Agreement
contains an express disclaimer of shareholder liability, and requires that
notice of such disclaimer be given in each agreement, obligation or instrument
entered into or executed by or for the company. This disclaimer may not be
effective in some jurisdictions or as to certain types of claims. The Master
Trust agreement provides for the defense of any shareholder for claims arising
out of the business of the Company.
We hereby consent to the use of this opinion as an exhibit to
the Company's Notice under 1940 Act Rule 24f-2, covering the registration of
the said shares under the 1933 Act and the applications and registration
statements, and amendments thereto, filed in accordance with the securities
laws of the several states in which shares of beneficial interest of the
classes, series or Sub-Trusts of the Company are offered. We further consent
to reference in the Prospectus of the Company to the fact that this opinion
concerning the legality of the issue has been rendered by us.
Very truly yours,
STRADLEY, RONON, STEVENS & YOUNG, LLP
By: /s/ Steven M. Felsenstein
---------------------------------
Steven M. Felsenstein
