<PAGE>
INSTITUTIONAL FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED APRIL 17, 1998
TO THE PROSPECTUS DATED MAY 1, 1997
AS AMENDED THROUGH DECEMBER 15, 1997
AS SUPPLEMENTED THROUGH FEBRUARY 25, 1998
Effective immediately, the Paragraph entitled "Schneider Capital Management"
under MONEY MANAGER PROFILES-EQUITY I FUND is revised in its entirety to read as
follows:
Schneider Capital Management, 460 E. Swedesford Road, Suite 1080, Wayne, PA
19087, is an SEC registered investment adviser owned by Arnold Schneider. In
response to an action brought by partners of Wellington Management Company LLP
("Wellington") on December 13, 1996 to enforce a non-compete provision of its
partnership agreement, a judge of the Middlesex County Superior Court in the
Commonwealth of Massachusetts issued an order on February 17, 1998 enjoining Mr.
Schneider from providing investment advisory services to certain former clients
of Wellington. Though not a party to that litigation, the Trust would have been
affected by that order. On April 7, 1998 the Trust joined a suit brought by its
investment manager and certain other persons in the United States District Court
for the Eastern District of Pennsylvania. On April 13, 1998, that Court issued a
preliminary injunction restraining Wellington from enforcing the non-compete
provision in its partnership agreement against Mr. Schneider.
<PAGE>
CLASS C FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED APRIL 17, 1998
TO THE PROSPECTUS DATED MAY 1, 1997
AS REVISED JUNE 1, 1997
AS SUPPLEMENTED THROUGH FEBRUARY 25, 1998
Effective immediately, the Paragraph entitled "Schneider Capital Management"
under MONEY MANAGER PROFILES-DIVERSIFIED EQUITY FUND is revised in its entirety
to read as follows:
Schneider Capital Management, 460 E. Swedesford Road, Suite 1080, Wayne, PA
19087, is an SEC registered investment adviser owned by Arnold Schneider. In
response to an action brought by partners of Wellington Management Company LLP
("Wellington") on December 13, 1996 to enforce a non-compete provision of its
partnership agreement, a judge of the Middlesex County Superior Court in the
Commonwealth of Massachusetts issued an order on February 17, 1998 enjoining Mr.
Schneider from providing investment advisory services to certain former clients
of Wellington. Though not a party to that litigation, the Trust would have been
affected by that order. On April 7, 1998 the Trust joined a suit brought by its
investment manager and certain other persons in the United States District Court
for the Eastern District of Pennsylvania. On April 13, 1998, that Court issued a
preliminary injunction restraining Wellington from enforcing the non-compete
provision in its partnership agreement against Mr. Schneider.
<PAGE>
CLASS S FUNDS
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED APRIL 17, 1998
TO THE PROSPECTUS DATED MAY 1, 1997
AS AMENDED THROUGH DECEMBER 15, 1997
AS SUPPLEMENTED THROUGH FEBRUARY 25, 1998
Effective immediately, the Paragraph entitled "Schneider Capital Management"
under MONEY MANAGER PROFILES-DIVERSIFIED EQUITY FUND is revised to read as
follows:
Schneider Capital Management, 460 E. Swedesford Road, Suite 1080, Wayne, PA
19087, is an SEC registered investment adviser owned by Arnold Schneider. In
response to an action brought by partners of Wellington Management Company LLP
("Wellington") on December 13, 1996 to enforce a non-compete provision of its
partnership agreement, a judge of the Middlesex County Superior Court in the
Commonwealth of Massachusetts issued an order on February 17, 1998 enjoining Mr.
Schneider from providing investment advisory services to certain former clients
of Wellington. Though not a party to that litigation, the Trust would have been
affected by that order. On April 7, 1998 the Trust joined a suit brought by its
investment manager and certain other persons in the United States District Court
for the Eastern District of Pennsylvania. On April 13, 1998, that Court issued a
preliminary injunction restraining Wellington from enforcing the non-compete
provision in its partnership agreement against Mr. Schneider.
<PAGE>
LIFEPOINTS FUNDS-CLASS D & CLASS E
FRANK RUSSELL INVESTMENT COMPANY
SUPPLEMENT DATED APRIL 17, 1998
TO THE PROSPECTUS DATED AUGUST 18, 1997
AS AMENDED THROUGH DECEMBER 15, 1998
AS SUPPLEMENTED THROUGH FEBRUARY 25, 1998
Effective immediately, the Paragraph entitled "Schneider Capital Management"
under MONEY MANAGER PROFILES-DIVERSIFIED EQUITY FUND is revised in its entirety
to read as follows:
Schneider Capital Management, 460 E. Swedesford Road, Suite 1080, Wayne, PA
19087, is an SEC registered investment adviser owned by Arnold Schneider. In
response to an action brought by partners of Wellington Management Company LLP
("Wellington") on December 13, 1996 to enforce a non-compete provision of its
partnership agreement, a judge of the Middlesex County Superior Court in the
Commonwealth of Massachusetts issued an order on February 17, 1998 enjoining Mr.
Schneider from providing investment advisory services to certain former clients
of Wellington. Though not a party to that litigation, the Trust would have been
affected by that order. On April 7, 1998 the Trust joined a suit brought by its
investment manager and certain other persons in the United States District Court
for the Eastern District of Pennsylvania. On April 13, 1998, that Court issued a
preliminary injunction restraining Wellington from enforcing the non-compete
provision in its partnership agreement against Mr. Schneider.
