<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:
12/31/96
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:
N/A / /
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>
(i) Aggregate sale price of securities sold during the fiscal year in
reliance on rule 24f-2 (from Item 10): $ 9,744,588,150
----------------
(ii) Aggregate price of shares issued in connection with dividend reinvestment
plans (from Item 11, if applicable): + 643,565,647
----------------
(iii) Aggregate price of shares redeemed or repurchased during the fiscal year
(if applicable): - (8,982,446,250)
----------------
(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): 1,405,707,547
----------------
(vi) Multiplier prescribed by Section 6(b) of the Securities Act of 1933
or other applicable law or regulation (see Instruction C.6): x 1/3300
----------------
(vii) Fee due [line (i) or line (v) multiplied by line (vi)]:
Minimum Fee: $ 425,971.98
================
</TABLE>
<PAGE> 3
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.
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 24, 1997
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/Gregory J. Lyons
-----------------------------------------
Gregory J. Lyons, Assistant Secretary
Date: February 27, 1997
* 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
Equity T 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
<TABLE>
<CAPTION>
Attachment B
- ----------------------------------------------------------------------------------------------------------
AGGREGATE SALE PRICE OF
SECURITIES SOLD
FUND NUMBER OF SHARES
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Equity I 8,775,052 $ 259,991,186
- ----------------------------------------------------------------------------------------------------------
Equity II 3,958,072 119,536,767
- ----------------------------------------------------------------------------------------------------------
Equity III 1,683,661 50,258,728
- ----------------------------------------------------------------------------------------------------------
Equity Q 7,321,433 234,003,820
- ----------------------------------------------------------------------------------------------------------
Fixed I 10,114,528 213,565,348
- ----------------------------------------------------------------------------------------------------------
Fixed II 4,900,950 90,320,506
- ----------------------------------------------------------------------------------------------------------
Fixed III 11,479,120 116,457,798
- ----------------------------------------------------------------------------------------------------------
International 7,697,721 288,204,022
- ----------------------------------------------------------------------------------------------------------
Emerging Markets 10,179,422 124,450,513
- ----------------------------------------------------------------------------------------------------------
Equity T 1,875,099 19,221,784
- ----------------------------------------------------------------------------------------------------------
Money Market 5,832,269,612 5,832,269,612
- ----------------------------------------------------------------------------------------------------------
Diversified Equity 5,614,599 230,097,300
- ----------------------------------------------------------------------------------------------------------
Special Growth (Class S) 3,804,912 156,927,623
- ----------------------------------------------------------------------------------------------------------
Special Growth (Class C) 22,414 980,934
- ----------------------------------------------------------------------------------------------------------
Equity Income (Class S) 1,393,790 55,293,884
- ----------------------------------------------------------------------------------------------------------
Equity Income (Class C) 3,036 127,065
- ----------------------------------------------------------------------------------------------------------
Quantitative Equity (Class S) 6,980,352 225,170,427
- ----------------------------------------------------------------------------------------------------------
Quantitative Equity (Class C) 9,742 329,240
- ----------------------------------------------------------------------------------------------------------
Diversified Bond (Class S) 9,067,853 208,139,587
- ----------------------------------------------------------------------------------------------------------
Diversified Bond (Class C) 42,496 984,717
- ----------------------------------------------------------------------------------------------------------
Volatility Constrained Bond 3,498,328 66,587,891
- ----------------------------------------------------------------------------------------------------------
Multistrategy Bond 14,210,027 142,635,388
- ----------------------------------------------------------------------------------------------------------
International Securities (Class S) 4,161,163 242,904,320
- ----------------------------------------------------------------------------------------------------------
International Securities (Class C) 10,652 633,353
- ----------------------------------------------------------------------------------------------------------
Limited Volatility Tax Free 1,424,169 30,027,835
- ----------------------------------------------------------------------------------------------------------
Real Estate Securities (Class S) 5,017,237 125,244,724
- ----------------------------------------------------------------------------------------------------------
Real Estate Securities (Class C) 3,474 92,731
- ----------------------------------------------------------------------------------------------------------
U.S. Gov't Money Market 695,162,232 695,162,232
- ----------------------------------------------------------------------------------------------------------
Tax Free Money Market 214,968,815 214,968,815
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Series Total 6,865,649,961 9,744,588,150
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
Attachment C
- -----------------------------------------------------------------------------------------------------------
AGGREGATE SALE PRICE OF
NUMBER OF SECURITIES ISSUED AS DIVIDEND
FUND SHARES REINVESTMENTS
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Equity I 3,653,484 107,746,730
- ----------------------------------------------------------------------------------------------------------
Equity II 1,337,201 38,886,095
- ----------------------------------------------------------------------------------------------------------
Equity III 1,116,778 32,500,661
- ----------------------------------------------------------------------------------------------------------
Equity Q 2,845,096 90,801,199
- ----------------------------------------------------------------------------------------------------------
Fixed I 1,613,448 33,578,468
- ----------------------------------------------------------------------------------------------------------
Fixed II 518,160 9,481,619
- ----------------------------------------------------------------------------------------------------------
Fixed III 1,651,840 16,602,395
- ----------------------------------------------------------------------------------------------------------
International 1,016,218 37,375,538
- ----------------------------------------------------------------------------------------------------------
Emerging Markets 256,419 3,073,769
- ----------------------------------------------------------------------------------------------------------
Equity T 4,338 44,985
- ----------------------------------------------------------------------------------------------------------
Money Market 90,874 90,874
- ----------------------------------------------------------------------------------------------------------
Diversified Equity 1,642,850 66,106,841
- ----------------------------------------------------------------------------------------------------------
Special Growth (Class S) 820,671 32,324,568
- ----------------------------------------------------------------------------------------------------------
Special Growth (Class C) 1 43
- ----------------------------------------------------------------------------------------------------------
Equity Income (Class S) 446,910 17,486,574
- ----------------------------------------------------------------------------------------------------------
Equity Income (Class C) 1 41
- ----------------------------------------------------------------------------------------------------------
Quantitative Equity (Class S) 1,823,635 58,110,154
- ----------------------------------------------------------------------------------------------------------
Quantitative Equity (Class C) 0 27
- ----------------------------------------------------------------------------------------------------------
Diversified Bond (Class S) 790,678 18,102,789
- ----------------------------------------------------------------------------------------------------------
Diversified Bond (Class C) 0 2
- ----------------------------------------------------------------------------------------------------------
Volatility Constrained Bond 296,985 5,642,187
- ----------------------------------------------------------------------------------------------------------
Multistrategy Bond 1,325,784 13,293,418
- ----------------------------------------------------------------------------------------------------------
International Securities (Class S) 365,866 21,034,288
- ----------------------------------------------------------------------------------------------------------
International Securities (Class C) 0 17
- ----------------------------------------------------------------------------------------------------------
Limited Volatility Tax Free 84,366 1,775,094
- ----------------------------------------------------------------------------------------------------------
Real Estate Securities (Class S) 1,176,858 30,943,033
- ----------------------------------------------------------------------------------------------------------
Real Estate Securities (Class C) 1 16
- ----------------------------------------------------------------------------------------------------------
U.S. Gov't Money Market 7,499,618 7,499,618
- ----------------------------------------------------------------------------------------------------------
Tax Free Money Market 1,064,604 1,064,604
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Series Total 31,442,684 643,565,647
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
Direct Dial: (215) 564-8074
February 21, 1997
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.
The Master Trust Agreement establishing the Company authorizes
the Company to issue an unlimited number of shares of beneficial interest in
such Sub-Trusts and classes thereof as have been authorized thereunder. The
Company and each Sub-Trust are authorized to issue without specific allocation
an unlimited number of shares of beneficial interest of the par value of one
cent ($.01) per share. An indefinite number of shares of all
<PAGE> 8
Frank Russell Investment Company
February 21, 1997
Page 2
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 (the "Rule"). 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 10, 1997, that in addition to 31,442,684 shares (with an aggregate
value of $643,565,647) which were issued by the various Sub-Trusts in payment of
income dividends or capital gains, during the Company's fiscal year ended
December 31, 1996, 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 the
U.S. Securities and Exchange Commission to make definite the registration of the
shares reflected in the table attached hereto as Exhibit A.
The Company has now requested the opinion of this firm for the
purpose of completing the registration under the 1933 Act of the shares 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 beneficial interest 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
<PAGE> 9
Frank Russell Investment Company
February 21, 1997
Page 3
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 the Rule, 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
/s/ Steven M. Felsenstein
By:__________________________________
Steven M. Felsenstein
SMF/nk
<PAGE> 10
Frank Russell Investment Company
February 21, 1997
Page 4
EXHIBIT A
---------
<TABLE>
<CAPTION>
Fund Number of Shares Amount Sold
---- ---------------- -----------
<S> <C> <C>
Equity I 8,775,052 $ 259,991,186
Equity II 3,958,072 119,536,767
Equity III 1,683,661 50,258,728
Equity Q 7,321,433 234,003,820
Fixed Income I 10,114,528 213,565,348
Fixed Income II 4,900,950 90,320,506
Fixed Income III 11,479,120 116,457,798
International 7,697,721 288,204,022
Emerging Markets 10,179,422 124,450,513
Equity T 1,875,099 19,221,784
Money Market 5,832,269,612 5,832,269,612
Diversified Equity 5,614,599 230,097,300
Special Growth (Class S) 3,804,912 156,927,623
Special Growth (Class C) 22,414 980,934
Equity Income (Class S) 1,393,790 55,293,884
Equity Income (Class C) 3,036 127,065
Quantitative Equity (Class S) 6,980,352 225,170,427
Quantitative Equity (Class C) 9,742 329,240
Diversified Bond (Class S) 9,067,853 208,139,587
Diversified Bond (Class C) 42,496 984,717
Volatility Constrained Bond 3,498,328 66,587,891
Multistrategy Bond 14,210,027 142,635,388
International Securities (Class S) 4,161,163 242,904,320
International Securities (Class C) 10,652 633,353
Limited Volatility Tax Free 1,424,169 30,027,835
Real Estate Securities Fund
(Class S) 5,017,237 125,244,724
Real Estate Securities Fund
(Class C) 3,474 92,731
U.S Government Money Market 695,162,232 695,162,232
Tax Free Money Market 214,968,815 214,968,815
------------- --------------
TOTAL 6,865,649,961 $9,744,588,150
============= ==============
</TABLE>
