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Specialty Funds
Frank Russell Investment Company
Supplement Dated September 1, 1997
to the Prospectus Dated May 1, 1997
as Revised June 1, 1997
as Supplemented through July 31, 1997
Effective September 1, 1997, the Annual Fund Operating Expense Table on page 10
will be restated as follows:
ANNUAL FUND OPERATING EXPENSES OF THE CLASS S SHARES
U.S. GOVERNMENT MONEY MARKET FUND
The purpose of the following table is to assist the investor in
understanding the various costs and expenses that an investor in the Class S
Shares of Fund will bear directly or indirectly. The example provided in the
table should not be considered a representation of past or future expenses.
Actual expenses may be greater or less than those shown.
<TABLE>
<S> <C> <C>
CLASS S SHARES SHAREHOLDER TRANSACTION EXPENSES:
Sales Load Imposed on Purchases None
Sales Load Imposed on Reinvested Dividends None
Deferred Sales Load None
Redemption Fees None
Exchange Fees None
ANNUAL CLASS S SHARES OPERATING EXPENSES:
(as a percentage of average net assets)
Management Fee (After Fee Waiver)(1) .12%
12b-1 Fees None
Other Expenses:
Custodian Fees .05%
Transfer Agent Fees .15
Other Fees .05
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Total Other Expenses .25
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Total Class S Shares Operating Expenses (After Fee Waiver) (1)+ .37%
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</TABLE>
<TABLE>
<CAPTION>
EXAMPLE: 1 YEAR 3 YEARS 5 YEARS 10 YEARS
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<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment assuming (1) 5% annual return and (2)
redemption at the end of each time period $4 $12 $20 $47
-- --- --- ---
</TABLE>
(1) FRIMCO has voluntarily agreed to waive .13% of its .25% management fee.
The total operating expenses of the fund absent the fee waiver would be
.50% of average daily net assets on an annual basis. This waiver is
intended to be in effect for the current fiscal year, but may be revised
or eliminated at any time thereafter without notice to shareholders.
+ Investors purchasing Class S Shares of the Fund through a financial
intermediary, such as a bank or an investment adviser, may also be
required to pay additional fees to the intermediary for services
provided by the intermediary. Such investors should contact the
intermediary for information concerning what additional fees, if any,
will be charged.
