<PAGE> 1
EXTERNAL FEE FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED DECEMBER 19, 1996
TO THE PROSPECTUS DATED JULY 8, 1996,
AS SUPPLEMENTED THROUGH DECEMBER 10, 1996
Effective December 19, 1996 the Equity I Fund will be managed by the following
money managers:
Alliance Capital Management L.P., 601 2nd Ave. South, Suite 5000,
Minneapolis, MN 55402-4322, is a limited partnership whose (i) general
partner is a wholly owned subsidiary of The Equitable Companies
Incorporated ("The Equitable") and (ii) majority unit holder is ACM,
Inc., a wholly owned subsidiary of The Equitable. As of March 1, 1995,
60.5% of The Equitable was owned by Axa, a French insurance holding
company.
BZW Barclays Global Fund Advisors, 45 Fremont Street, 17th Floor, San
Francisco, CA 94105, is an indirect, wholly-owned subsidiary of Barclays
Bank PLC.
Columbus Circle Investors, Metro Center, One Station Place, 8th Floor,
Stamford, CT 06902, is a subsidiary partnership of PIMCO Advisors L.P.
("Partnership"). PIMCO Partners, G.P. is the sole general partner of the
Partnership. Pacific Financial Asset Management Corporation indirectly
holds a majority interest in PIMCO Partners, G.P., with the remainder
held indirectly by a group comprised of PIMCO Managing Directors.
Equinox Capital Management, Inc., 399 Park Ave., 28th Floor, New York,
NY 10022. Equinox is a registered investment adviser with majority
ownership held by Ron Ulrich.
INVESCO Capital Management, Inc., 1315 Peachtree Street N.E., Suite 300,
Atlanta, GA 30309, is a corporation whose indirect parent is INVESCO,
PLC, a London-based financial services holding company.
Lincoln Capital Management Company, 200 South Wacker Drive, Suite 2100,
Chicago, IL 60606. Lincoln Capital Management, Inc. is a division of
Lincoln Capital Management Company, and is a registered investment
adviser with majority ownership held by John Croghan, Parker Hall, Ken
Meyer, Tim Ubben and Ray Zemon.
Schneider Capital Management, 460 E. Swedesford Road, Suite 1080, Wayne,
PA, 19087, is a SEC registered investment adviser owned by Arnold
Schneider. As of the date of this supplement, the Investment Company
understands that an injunction is being sought against Arnold Schneider
in Massachusetts Middlesex County Superior Court by partners of
Wellington Management Company L.L.P. ("Wellington"). The proceedings
were instituted on December 13, 1996. The Investment Company believes
that the injunction request seeks to prevent Arnold Schneider from
engaging in the investment advisory or investment management business in
competition with Wellington.
Suffolk Capital Management, Inc., 250 West 57th Street, Suite 420, New
York, NY 10107. Suffolk Capital Management, Inc. is a registered
investment adviser and a wholly owned subsidiary of United Asset
Management Company, a publicly traded corporation.
Trinity Investment Management Corporation, 75 Park Plaza, Boston, MA
02116, is a corporation with seven shareholders, with Stanford M.
Calderwood holding majority ownership.
<PAGE> 2
CLASS C FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED DECEMBER 19, 1996
TO THE PROSPECTUS DATED JULY 8, 1996,
AS SUPPLEMENTED THROUGH DECEMBER 10, 1996
Effective December 19, 1996 the Diversified Equity Fund will be managed by the
following money managers:
Alliance Capital Management L.P., 601 2nd Ave. South, Suite 5000,
Minneapolis, MN 55402-4322, is a limited partnership whose (i) general
partner is a wholly owned subsidiary of The Equitable Companies
Incorporated ("The Equitable") and (ii) majority unit holder is ACM,
Inc., a wholly owned subsidiary of The Equitable. As of March 1, 1995,
60.5% of The Equitable was owned by Axa, a French insurance holding
company.
BZW Barclays Global Fund Advisors, 45 Fremont Street, 17th Floor, San
Francisco, CA 94105, in an indirect, wholly-owned subsidiary of
Barclays Bank PLC.
Columbus Circle Investors, Metro Center, One Station Place, 8th Floor,
Stamford, CT 06902, is a subsidiary partnership of PIMCO Advisors L.P.
("Partnership"). PIMCO Partners, G.P. is the sole general partner of
the Partnership. Pacific Financial Asset Management Corporation
indirectly holds a majority interest in PIMCO Partners, G.P., with the
remainder held indirectly by a group comprised of PIMCO Managing
Directors.
Equinox Capital Management, Inc., 399 Park Ave., 28th Floor, New York,
NY 10022. Equinox is a registered investment adviser with majority
ownership held by Ron Ulrich.
INVESCO Capital Management, Inc., 1315 Peachtree Street N.E., Suite
300, Atlanta, GA 30309, is a corporation whose indirect parent is
INVESCO, PLC, a London-based financial services holding company.
Lincoln Capital Management Company, 200 South Wacker Drive, Suite 2100,
Chicago, IL 60606. Lincoln Capital Management, Inc., is a division of
Lincoln Capital Management Company, and is a registered investment
adviser with majority ownership held by John Croghan, Parker Hall,
Ken Meyer, Tim Ubben and Ray Zemon.
Schneider Capital Management, 460 E. Swedesford Road, Suite 1080, Wayne,
PA, 19087, is a SEC registered investment adviser owned by Arnold
Schneider. As of the date of this supplement, the Investment Company
understands that an injunction is being sought against Arnold Schneider
in Massachusetts Middlesex County Superior Court by partners of
Wellington Management Company L.L.P. ("Wellington"). The proceedings
were instituted on December 13, 1996. The Investment Company believes
that the injunction request seeks to prevent Arnold Schneider from
engaging in the investment advisory or investment management business in
competition with Wellington.
Suffolk Capital Management, Inc., 250 West 57th Street, Suite 420, New
York, NY 10107. Suffolk Capital Management, Inc. is a registered
investment adviser and a wholly owned subsidiary of United Asset
Management Company, a publicly traded corporation.
Trinity Investment Management Corporation, 75 Park Plaza, Boston, MA
02116, is a corporation with seven shareholders, with Stanford M.
Calderwood holding majority ownership.
<PAGE> 3
CLASS S FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED DECEMBER 19, 1996
TO THE PROSPECTUS DATED JULY 8, 1996,
AS SUPPLEMENTED THROUGH DECEMBER 10, 1996
Effective December 19, 1996 the Diversified Equity Fund will be managed by the
following money managers:
Alliance Capital Management L.P., 601 2nd Ave. South, Suite 5000,
Minneapolis, MN 55402-4322, is a limited partnership whose (i) general
partner is a wholly owned subsidiary of The Equitable Companies
Incorporated ("The Equitable") and (ii) majority unit holder is ACM,
Inc., a wholly owned subsidiary of The Equitable. As of March 1, 1995,
60.5% of The Equitable was owned by Axa, a French insurance holding
company.
BZW Barclays Global Fund Advisors, 45 Fremont Street, 17th Floor, San
Francisco, CA 94105, is an indirect, wholly-owned subsidiary of Barclays
Bank PLC.
Columbus Circle Investors, Metro Center, One Station Place, 8th Floor,
Stamford, CT 06902, is a subsidiary partnership of PIMCO Advisors L.P.
("Partnership"). PIMCO Partners, G.P. is the sole general partner of the
Partnership. Pacific Financial Asset Management Corporation indirectly
holds a majority interest in PIMCO Partners, G.P., with the remainder
held indirectly by a group comprised of PIMCO Managing Directors.
Equinox Capital Management, Inc., 399 Park Ave., 28th Floor, New York,
NY 10022. Equinox is a registered investment adviser with majority
ownership held by Ron Ulrich.
INVESCO Capital Management, Inc., 1315 Peachtree Street N.E., Suite 300,
Atlanta, GA 30309, is a corporation whose indirect parent is INVESCO,
PLC, a London-based financial services holding company.
Lincoln Capital Management Company, 200 South Wacker Drive, Suite 2100,
Chicago, IL 60606. Lincoln Capital Management, Inc. is a division of
Lincoln Capital Management Company, and is a registered investment
adviser with majority ownership held by John Croghan, Parker Hall, Ken
Meyer, Tim Ubben and Ray Zemon.
Schneider Capital Management, 460 E. Swedesford Road, Suite 1080, Wayne,
PA, 19087, is a SEC registered investment adviser owned by Arnold
Schneider. As of the date of this supplement, the Investment Company
understands that an injunction is being sought against Arnold Schneider
in Massachusetts Middlesex County Superior Court by partners of
Wellington Management Company L.L.P. ("Wellington"). The proceedings
were instituted on December 13, 1996. The Investment Company believes
that the injunction request seeks to prevent Arnold Schneider from
engaging in the investment advisory or investment management business in
competition with Wellington.
Suffolk Capital Management, Inc., 250 West 57th Street, Suite 420, New
York, NY 10107. Suffolk Capital Management, Inc. is a registered
investment adviser and a wholly owned subsidiary of United Asset
Management Company, a publicly traded corporation.
Trinity Investment Management Corporation, 75 Park Plaza, Boston, MA
02116, is a corporation with seven shareholders, with Stanford M.
Calderwood holding majority ownership.
