<PAGE>
Class C Funds
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 13, 1997
TO THE PROSPECTUS DATED MAY 1, 1997
AS REVISED JUNE 1, 1997,
AS SUPPLEMENTED THROUGH JULY 31, 1997
Effective August 13, 1997 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.
Barclays Global Investors, 45 Fremont Street, 17th Floor, San Francisco, CA
94105, is an indirect, wholly owned subsidiary of Barclays Bank PLC.
Equinox Capital Management, Inc., 590 Madison Avenue, 41st 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 AMVESCO, 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.
Peachtree Asset Management, One Peachtree Center, Suite 4500, 303 Peachtree
Street N.E., Atlanta, GA 30308. Peachtree is a unit of the Smith Barney Asset
Management division of Smith Barney Mutual Funds Management Inc., which is a
wholly owned subsidiary of Travelers Group, Inc.
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
("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>
Class S Funds
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 13, 1997
TO THE PROSPECTUS DATED MAY 1, 1997
AS REVISED JUNE 1, 1997
Effective August 13, 1997 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.
Barclays Global Investors, 45 Fremont Street, 17th Floor, San Francisco, CA
94105, is an indirect, wholly owned subsidiary of Barclays Bank PLC.
Equinox Capital Management, Inc., 590 Madison Avenue, 41st 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 AMVESCO, 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.
Peachtree Asset Management, One Peachtree Center, Suite 4500, 303 Peachtree
Street N.E., Atlanta, GA 30308. Peachtree is a unit of the Smith Barney Asset
Management division of Smith Barney Mutual Funds Management Inc., which is a
wholly owned subsidiary of Travelers Group, Inc.
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
("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>
Institutional
Funds
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 13, 1997
TO THE PROSPECTUS DATED MAY 1, 1997
AS REVISED JUNE 1, 1997
Effective August 13, 1997 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.
Barclays Global Investorss, 45 Fremont Street, 17th Floor, San Francisco, CA
94105, is an indirect wholly-owned subsidiary of Barclays Bank PLC.
Equinox Capital Management, Inc., 590 Madison Avenue, 41st 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 AMVESCO, 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.
Peachtree Asset Management, One Peachtree Center, Suite 4500, 303 Peachtree
Street N.E., Atlanta, GA 30308. Peachtree is a unit of the Smith Barney Asset
Management division of Smith Barney Mutual Funds Management Inc., which is a
wholly owned subsidiary of Travelers Group Inc.
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
("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>
LifePoints Funds - Class D
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 13, 1997
TO THE PROSPECTUS DATED MAY 1, 1997
AS REVISED JUNE 6, 1997,
AS SUPPLEMENTED THROUGH JULY 31, 1997
Effective August 13, 1997 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.
Barclays Global Investors, 45 Fremont Street, 17th Floor, San Francisco, CA
94105, is an indirect, wholly-owned subsidiary of Barclays Bank PLC.
Equinox Capital Management, Inc., 590 Madison Avenue, 41st 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 AMVESCO, 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.
Peachtree Asset Management, One Peachtree Center, Suite 4500, 303 Peachtree
Street N.E., Atlanta, GA 30308. Peachtree is a unit of the Smith Barney Asset
Management Division of Smith Barney, Mutual Funds Management Inc., which is
wholly owned subsidiary of Travelers Group, Inc.
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 Prospectus, 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 Mr.
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.
