<PAGE>
INSTITUTIONAL FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 20, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
AS SUPPLEMENTED THROUGH JUNE 15, 1998
Effective August 20, 1998, Frank Russell Investment Company makes the
following changes to the Institutional Funds Prospectus.
In the section captioned "How to Purchase Shares--Paying for Shares," the
second paragraph shall be revised to read in its entirety as follows:
"Cash, third party checks and checks drawn on credit card
accounts generally will not be accepted. However exceptions may
be made by prior special arrangement with certain Financial
Intermediaries."
In the section captioned "How to Redeem Shares," the first paragraph shall be
revised to read in its entirety as follows:
"Shares of the Funds may be redeemed on any business day the
Funds are open at the next net asset value per share calculated
after receipt of an order in proper form (defined in the
"Written Instructions" section). Payment will ordinarily be made
within seven days after receipt of your request in proper form.
Shares recently purchased by check may not be available for
liquidation for 15 days following the purchase to assure payment
has been collected."
Equity II Fund will be managed by the following money managers:
Delphi Management, Inc., 30 Rowes Wharf, Suite 440, Boston, MA 02110, is
100% owned by Scott Black.
Fiduciary International, Inc., 2 World Trade Center, New York, NY 10048,
an investment adviser registered with the SEC, is an indirect wholly-owned
subsidiary of Fiduciary Trust Company International, a New York state
chartered bank.
GlobeFlex Capital, L.P., 4365 Executive Drive, Suite 720, San Diego, CA
92121, is a California limited partnership and an SEC registered investment
adviser. Its general partners are Robert J. Anslow, Jr. and Marina L.
Marelli.
Jacobs Levy Equity Management, Inc., 280 Corporate Center, 3 ADP
Boulevard, Roseland, NJ 07068, is 100% owned by Bruce Jacobs and Kenneth
Levy.
Sirach Capital Management, Inc., One Union Square, Suite 3323, 600 Union
Street, Seattle, WA 98101, is a wholly-owned subsidiary of United Asset
Management Company, a publicly traded corporation.
Wellington Management Company LLP, 75 State Street, Boston, MA 02109, is
a private Massachusetts limited liability partnership, of which the
following persons are managing partners: Robert W. Doran, Duncan M.
McFarland and John R. Ryan.
Westpeak Investment Advisors, L.P., 1011 Walnut Street, Suite 400,
Boulder, CO 80302, is indirectly controlled by Metropolitan Life Insurance
Company.
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SPECIALTY FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 20, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
AS SUPPLEMENTED THROUGH JUNE 15, 1998
Effective August 20, 1998, Frank Russell Investment Company makes the
following changes to the Specialty Funds Prospectus.
In the section captioned "How to Purchase Shares--Paying for Shares," the
second paragraph shall be revised to read in its entirety as follows:
"Cash, third party checks and checks drawn on credit card
accounts generally will not be accepted. However exceptions may
be made by prior special arrangement with certain Financial
Intermediaries."
In the section captioned "How to Redeem Shares," the first paragraph shall be
revised to read in its entirety as follows:
"Shares of the Funds may be redeemed on any business day the
Funds are open at the next net asset value per share calculated
after receipt of an order in proper form (defined in the
"Written Instructions" section). Payment will ordinarily be made
within seven days after receipt of your request in proper form.
Shares recently purchased by check may not be available for
liquidation for 15 days following the purchase to assure payment
has been collected."
Limited Volatility Tax Free Fund will be managed by the following money
managers:
MFS Institutional Advisors, Inc., 500 Boylston Street, Boston, MA 02116,
is a wholly-owned, indirect subsidiary of Sun Life Assurance Company of
Canada (US), a mutual insurance company.
Standish, Ayer & Wood, Inc., One Financial Center, Boston, MA 02111, is a
company whose ownership is divided among seventeen directors, with no
director having more than a 25% ownership interest.
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CLASS S FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 20, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
AS SUPPLEMENTED THROUGH JUNE 15, 1998
Effective August 20, 1998, Frank Russell Investment Company makes the
following changes to the Class S Funds Prospectus.
In the section captioned "How to Purchase Shares--Paying for Shares," the
second paragraph shall be revised to read in its entirety as follows:
"Cash, third party checks and checks drawn on credit card
accounts generally will not be accepted. However exceptions may
be made by prior special arrangement with certain Financial
Intermediaries."
In the section captioned "How to Redeem Shares," the first paragraph shall be
revised to read in its entirety as follows:
"Shares of the Funds may be redeemed on any business day the
Funds are open at the next net asset value per share calculated
after receipt of an order in proper form (defined in the
"Written Instructions" section). Payment will ordinarily be made
within seven days after receipt of your request in proper form.
Shares recently purchased by check may not be available for
liquidation for 15 days following the purchase to assure payment
has been collected."
Special Growth Fund will be managed by the following money managers:
Delphi Management, Inc., 30 Rowes Wharf, Suite 440, Boston, MA 02110, is
100% owned by Scott Black.
Fiduciary International, Inc., 2 World Trade Center, New York, NY 10048,
an investment adviser registered with the SEC, is an indirect wholly-owned
subsidiary of Fiduciary Trust Company International, a New York state
chartered bank.
GlobeFlex Capital, L.P., 4365 Executive Drive, Suite 720, San Diego, CA
92121, is a California limited partnership and an SEC registered investment
adviser. Its general partners are Robert J. Anslow, Jr. and Marina L.
Marelli.
Jacobs Levy Equity Management, Inc., 280 Corporate Center, 3 ADP
Boulevard, Roseland, NJ 07068, is 100% owned by Bruce Jacobs and Kenneth
Levy.
Sirach Capital Management, Inc., One Union Square, Suite 3323, 600 Union
Street, Seattle, WA 98101, is a wholly-owned subsidiary of United Asset
Management Company, a publicly traded corporation.
Wellington Management Company LLP, 75 State Street, Boston, MA 02109, is
a private Massachusetts limited liability partnership, of which the
following persons are managing partners: Robert W. Doran, Duncan M.
McFarland and John R. Ryan.
Westpeak Investment Advisors, L.P., 1011 Walnut Street, Suite 400,
Boulder, CO 80302, is indirectly controlled by Metropolitan Life Insurance
Company.
<PAGE>
CLASS E FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 20, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
AS SUPPLEMENTED THROUGH JUNE 15, 1998
Effective August 20, 1998, Frank Russell Investment Company makes the
following changes to the Class E Funds Prospectus.
In the section captioned "How to Purchase Shares--Paying for Shares," the
second paragraph shall be revised to read in its entirety as follows:
"Cash, third party checks and checks drawn on credit card
accounts generally will not be accepted. However exceptions may
be made by prior special arrangement with certain Financial
Intermediaries."
In the section captioned "How to Redeem Shares," the first paragraph shall be
revised to read in its entirety as follows:
"Shares of the Funds may be redeemed on any business day the
Funds are open at the next net asset value per share calculated
after receipt of an order in proper form (defined in the
"Written Instructions" section). Payment will ordinarily be made
within seven days after receipt of your request in proper form.
Shares recently purchased by check may not be available for
liquidation for 15 days following the purchase to assure payment
has been collected."
Special Growth Fund will be managed by the following money managers:
Delphi Management, Inc., 30 Rowes Wharf, Suite 440, Boston, MA 02110, is
100% owned by Scott Black.
Fiduciary International, Inc., 2 World Trade Center, New York, NY 10048,
an investment adviser registered with the SEC, is an indirect wholly-owned
subsidiary of Fiduciary Trust Company International, a New York state
chartered bank.
GlobeFlex Capital, L.P., 4365 Executive Drive, Suite 720, San Diego, CA
92121, is a California limited partnership and an SEC registered investment
adviser. Its general partners are Robert J. Anslow, Jr. and Marina L.
Marelli.
Jacobs Levy Equity Management, Inc., 280 Corporate Center, 3 ADP
Boulevard, Roseland, NJ 07068, is 100% owned by Bruce Jacobs and Kenneth
Levy.
Sirach Capital Management, Inc., One Union Square, Suite 3323, 600 Union
Street, Seattle, WA 98101, is a wholly-owned subsidiary of United Asset
Management Company, a publicly traded corporation.
Wellington Management Company LLP, 75 State Street, Boston, MA 02109, is
a private Massachusetts limited liability partnership, of which the
following persons are managing partners: Robert W. Doran, Duncan M.
McFarland and John R. Ryan.
Westpeak Investment Advisors, L.P., 1011 Walnut Street, Suite 400,
Boulder, CO 80302, is indirectly controlled by Metropolitan Life Insurance
Company.
<PAGE>
LIFEPOINTS FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 20, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
AS SUPPLEMENTED THROUGH JUNE 15, 1998
Effective August 20, 1998, Frank Russell Investment Company makes the
following changes to the LifePoints Funds Prospectus.
In the section captioned "How to Purchase Lifepoints Fund Shares--Paying for
Shares," the second paragraph shall be revised to read in its entirety as
follows:
"Cash, third party checks and checks drawn on credit card
accounts generally will not be accepted. However exceptions may
be made by prior special arrangement with certain Financial
Intermediaries."
In the section captioned "How to Redeem Shares," the first paragraph shall be
revised to read in its entirety as follows:
"Shares of the Funds may be redeemed on any business day the
Funds are open at the next net asset value per share calculated
after receipt of an order in proper form (defined in the
"Written Instructions" section). Payment will ordinarily be made
within seven days after receipt of your request in proper form.
Shares recently purchased by check may not be available for
liquidation for 15 days following the purchase to assure payment
has been collected."
Special Growth Fund will be managed by the following money managers:
Delphi Management, Inc., 30 Rowes Wharf, Suite 440, Boston, MA 02110, is
100% owned by Scott Black
Fiduciary International, Inc., 2 World Trade Center, New York, NY 10048,
an investment adviser registered with the SEC, is an indirect wholly-owned
subsidiary of Fiduciary Trust Company International, a New York state
chartered bank.
GlobeFlex Capital, L.P., 4365 Executive Drive, Suite 720, San Diego, CA
92121, is a California limited partnership and an SEC registered investment
adviser. Its general partners are Robert J. Anslow, Jr. and Marina L.
Marelli.
Jacobs Levy Equity Management, Inc., 280 Corporate Center, 3 ADP
Boulevard, Roseland, NJ 07068, is 100% owned by Bruce Jacobs and Kenneth
Levy.
Sirach Capital Management, Inc., One Union Square, Suite 3323, 600 Union
Street, Seattle, WA 98101, is a wholly-owned subsidiary of United Asset
Management Company, a publicly traded corporation.
Wellington Management Company LLP, 75 State Street, Boston, MA 02109, is
a private Massachusetts limited liability partnership, of which the
following persons are managing partners: Robert W. Doran, Duncan M.
McFarland and John R. Ryan.
Westpeak Investment Advisors, L.P., 1011 Walnut Street, Suite 400,
Boulder, CO 80302, is indirectly controlled by Metropolitan Life Insurance
Company.
<PAGE>
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 20, 1998 TO THE
STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1998
AS SUPPLEMENTED THROUGH JUNE 15, 1998
Effective August 20, 1998, the Treasurer and Chief Accounting Officer will be
the following person:
Mark E. Swanson, 34, Treasurer and Chief Accounting Officer. Treasurer and
Chief Accounting Officer, Russell Insurance Funds; Interim Director,
Finance and Operations, Frank Russell Trust Company; Senior Vice President
and Assistant Fund Treasurer, SSgA Funds (investment company); Interim
Director of Fund Administration and Accounting, Frank Russell Investment
Management Company; Manager, Funds Accounting and Taxes, Russell Fund
Distributors, Inc. April 1996 to August 1998, Assistant Treasurer, Frank
Russell Investment Company; August 1996 to August 1998, Assistant
Treasurer, Russell Insurance Funds. November 1995 to July 1998, Assistant
Secretary, the Seven Seas Series Fund. February 1997 to July 1998,
Manager, Funds Accounting and Taxes, Frank Russell Investment Management
Company.
<PAGE>
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED AUGUST 20, 1998 TO THE
LIFE POINTS STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1998
AS SUPPLEMENTED THROUGH JUNE 15, 1998
Effective August 20, 1998, the Treasurer and Chief Accounting Officer will be
the following person:
Mark E. Swanson, 34, Treasurer and Chief Accounting Officer. Treasurer and
Chief Accounting Officer, Russell Insurance Funds; Interim Director,
Finance and Operations, Frank Russell Trust Company; Senior Vice President
and Assistant Fund Treasurer, SSgA Funds (investment company); Interim
Director of Fund Administration and Accounting, Frank Russell Investment
Management Company; Manager, Funds Accounting and Taxes, Russell Fund
Distributors, Inc. April 1996 to August 1998, Assistant Treasurer, Frank
Russell Investment Company; August 1996 to August 1998, Assistant
Treasurer, Russell Insurance Funds. November 1995 to July 1998, Assistant
Secretary, the Seven Seas Series Fund. February 1997 to July 1998,
Manager, Funds Accounting and Taxes, Frank Russell Investment Management
Company.
