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FRANK RUSSELL INVESTMENT COMPANY
Supplement Dated May 20, 1996
to Specialty Funds Prospectus
(Dated May 1, 1996)
Frank Russell Investment Company makes the following change to its Specialty
Funds Prospectus.
Under the section "Investment Objectives, Restrictions, Policies and Risks --
Equity T Fund:
+ the seventh paragraph thereunder is deleted in its entirety.
+ the eighth and ninth paragraphs thereunder are restated to read in their
entirety as follows:
The Fund will attempt to limit short-term capital gains, and to
minimize the realization of net long-term capital gains and subsequent
distribution of such gains, to shareholders. While the Fund is free to
sell securities in its portfolio whenever the money manager deems it
appropriate, the Fund will typically buy stocks with the intention
of holding for a period of time to qualify for the more favorable tax
treatment (i.e., a long-term capital gain).
When the money manager decides to sell a particular appreciated
security, the manager will generally select for sale those share lots
with the highest cost basis to minimize capital gains. The money manager
will also sell securities in order to realize capital losses. Such
losses can be used to offset realized capital gains (whether long- or
short-term), thereby reducing capital gains distributions to Fund
shareholders.
