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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar Investments
in the Custody of Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
<TABLE>
<S> <C>
1. Investment Company Act File Number: Date examination completed:
811-3153 8/31/98, 12/15/98, 12/31/98
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2. State Identification Number:
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AL None AK Attach. AZ Attach. AR Attach. CA 505-2479 CO IC91-00-432
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CT Attach. DE None DC None FL 33630(9) GA 56882139 HI None
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ID Attach. IL 9840830 IN 90-0072 IC IA Attach. KS Attach. KY M33793
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LA 59980 ME Attach. MD Attach. MA None MI Attach. MN R-34008
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MS Attach. MO Attach. MT Attach. NE Attach. NV None NH None
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NJ None NM Attach. NY Attach. NC 1394 ND Attach. OH 14823
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OK SE2001334 OR 97-0413 PA 9004004MF RI None SC Attach. SD Attach.
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TN RM98-2538 TX Attach. UT B00052390 VT Attach VA 561 WA Attach.
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WV Attach. WI Attach. WY 18620 PUERTO RICO Attach.
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Other (specify):
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3. Exact Name of Investment Company as Specified in Registration Statement:
Frank Russell Investment Company
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- ----------------------------------------------------------------------------------------------------------------------
4. Address of principal executive office (number, street, city, state, zip code):
909 A Street, Tacoma, WA 98402
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</TABLE>
INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the
original and one copy with the Securities and Exchange Commission's
principal office in Washington, D. C., one copy with the regional office
for the region in which the investment company's principal business
operations are conducted, and one copy with the appropriate state
administrator(s), if applicable.
<PAGE>
ATTACHMENT
TO FORM N-17f-2
FRANK RUSSELL INVESTMENT COMPANY
<TABLE>
<CAPTION>
- ----------------------- --------------------------------------- -----------------------------------
State Portfolio State Identification Number
- ----------------------- --------------------------------------- -----------------------------------
<S> <C> <C>
Alaska Aggressive Strategy - Class D, E 97-02729
Balanced Strategy - Class D, E 97-02730
Moderate Strategy - Class D, E 97-02731
Conservative Strategy - Class D, E 97-02732
Equity Balanced Strategy - Class D, E 97-02733
- ----------------------- --------------------------------------- -----------------------------------
Arizona Aggressive Strategy - Class D S-0054180
Aggressive Strategy - Class E S-0055434
Balanced Strategy - Class D S-0054181
Balanced Strategy - Class E S-0055435
Moderate Strategy - Class D S-0054184
Moderate Strategy - Class E S-0055438
Conservative Strategy - Class D S-0054182
Conservative Strategy - Class E S-0055436
Equity Balanced Strategy - Class D S-0054183
Equity Balanced Strategy - Class E S-0055437
- ----------------------- --------------------------------------- -----------------------------------
Arkansas Aggressive Strategy - Class D, E 90-M0059-28
Balanced Strategy - Class D, E 90-M0059-27
Moderate Strategy - Class D, E 90-M0059-25
Conservative Strategy - Class D, E 90-M0059-24
Equity Balanced Strategy - Class D, E 90-M0059-26
- ----------------------- --------------------------------------- -----------------------------------
Connecticut Aggressive Strategy - Class D, E SI-43192
Balanced Strategy - Class D, E SI-43197
Moderate Strategy - Class D, E SI-43198
Conservative Strategy - Class D, E SI-43195
Equity Balanced Strategy - Class D, E SI-43193
- ----------------------- --------------------------------------- -----------------------------------
Idaho Aggressive Strategy - Class D, E 47928
Balanced Strategy - Class D, E 47927
Moderate Strategy - Class D, E 47926
Conservative Strategy - Class D, E 47925
Equity Balanced Strategy - Class D, E 47924
- ----------------------- --------------------------------------- -----------------------------------
Iowa Aggressive Strategy - Class D I-38420
Aggressive Strategy - Class E I-39262
Balanced Strategy - Class D I-38424
Balanced Strategy - Class E I-38263
Moderate Strategy - Class D I-38423
Moderate Strategy - Class E I-39266
Conservative Strategy - Class D I-38421
Conservative Strategy - Class E I-39264
Equity Balanced Strategy - Class D I-38422
Equity Balanced Strategy - Class E I-39265
- ----------------------- --------------------------------------- -----------------------------------
Kansas Aggressive Strategy - Class D, E 97S0001180
Balanced Strategy - Class D, E 97S0001181
Moderate Strategy - Class D, E 97S0001184
Conservative Strategy - Class D, E 97S0001182
Equity Balanced Strategy - Class D, E 97S0001183
- ----------------------- --------------------------------------- -----------------------------------
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
- ----------------------- --------------------------------------- -----------------------------------
State Portfolio State Identification Number
- ----------------------- --------------------------------------- -----------------------------------
<S> <C> <C>
Maine Aggressive Strategy - Class D MFR98-10720
Aggressive Strategy - Class E MF-R99-953
Balanced Strategy - Class D MFR98-10721
Balanced Strategy - Class E MF-R99-952
Moderate Strategy - Class D MFR98-10722
Moderate Strategy - Class E MF-R99-951
Conservative Strategy - Class D MFR98-10723
Conservative Strategy - Class E MF-R99-950
Equity Balanced Strategy - Class D MFR98-10724
Equity Balanced Strategy - Class E MF-R99-949
- ----------------------- --------------------------------------- -----------------------------------
Maryland Aggressive Strategy - Class D SM970582
Aggressive Strategy - Class E SM971278
Balanced Strategy - Class D SM970583
Balanced Strategy - Class E SM971277
Moderate Strategy - Class D SM970584
Moderate Strategy - Class E SM971279
Conservative Strategy - Class D SM970585
Conservative Strategy - Class E SM971276
Equity Balanced Strategy - Class D SM970586
Equity Balanced Strategy - Class E SM971275
- ----------------------- --------------------------------------- -----------------------------------
Michigan Aggressive Strategy - Class D 275452
Aggressive Strategy - Class E 276043
Balanced Strategy - Class D 275451
Balanced Strategy - Class E 276042
Moderate Strategy - Class D 275450
Moderate Strategy - Class E 276039
Conservative Strategy - Class D 275449
Conservative Strategy - Class E 276041
Equity Balanced Strategy - Class D 275448
Equity Balanced Strategy - Class E 276040
- ----------------------- --------------------------------------- -----------------------------------
Mississippi Aggressive Strategy - Class D MF-97-04-150
Aggressive Strategy - Class E MF-97-08-105
Balanced Strategy - Class D MF-97-04-149
Balanced Strategy - Class E MF-97-08-106
Moderate Strategy - Class D MF-97-04-148
Moderate Strategy - Class E MF-97-08-109
Conservative Strategy - Class D MF-97-04-147
Conservative Strategy - Class E MF-97-08-107
Equity Balanced Strategy - Class D MF-97-04-146
Equity Balanced Strategy - Class E MF-97-08-108
- ----------------------- --------------------------------------- -----------------------------------
Missouri Aggressive Strategy - Class D, E 177875
Balanced Strategy - Class D, E 177874
Moderate Strategy - Class D, E 177873
Conservative Strategy - Class D, E 177872
Equity Balanced Strategy - Class D, E 177871
- ----------------------- --------------------------------------- -----------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
- ----------------------- --------------------------------------- -----------------------------------
State Portfolio State Identification Number
- ----------------------- --------------------------------------- -----------------------------------
<S> <C> <C>
Montana Aggressive Strategy - Class D, E 36808
Balanced Strategy - Class D, E 36809
Moderate Strategy - Class D, E 36812
Conservative Strategy - Class D, E 36810
Equity Balanced Strategy - Class D, E 36811
- ----------------------- --------------------------------------- -----------------------------------
Nebraska Aggressive Strategy - Class D 27910
Aggressive Strategy - Class E 31443
Balanced Strategy - Class D 27911
Balanced Strategy - Class E 31444
Moderate Strategy - Class D 27912
Moderate Strategy - Class E 31447
Conservative Strategy - Class D 27913
Conservative Strategy - Class E 31445
Equity Balanced Strategy - Class D 27914
Equity Balanced Strategy - Class E 31446
- ----------------------- --------------------------------------- -----------------------------------
New Mexico Aggressive Strategy - Class D 973581
Aggressive Strategy - Class E 977477
Balanced Strategy - Class D 973580
Balanced Strategy - Class E 977476
Moderate Strategy - Class D 973579
Moderate Strategy - Class E 977473
Conservative Strategy - Class D 973578
Conservative Strategy - Class E 977475
Equity Balanced Strategy - Class D 973582
Equity Balanced Strategy - Class E 977474
- ----------------------- --------------------------------------- -----------------------------------
New York Aggressive Strategy - Class D, E S27-89-97
Balanced Strategy - Class D, E S27-89-98
Moderate Strategy - Class D, E S27-89-99
Conservative Strategy - Class D, E S27-90-00
Equity Balanced Strategy - Class D, E S27-90-01
- ----------------------- --------------------------------------- -----------------------------------
North Dakota Aggressive Strategy - Class D S750
Aggressive Strategy - Class E T495
Balanced Strategy - Class D S751
Balanced Strategy - Class E T496
Moderate Strategy - Class D S754
Moderate Strategy - Class E T499
Conservative Strategy - Class D S752
Conservative Strategy - Class E T497
Equity Balanced Strategy - Class D S753
Equity Balanced Strategy - Class E T498
- ----------------------- --------------------------------------- -----------------------------------
South Carolina Aggressive Strategy - Class D, E MF10670
Balanced Strategy - Class D, E MF10669
Moderate Strategy - Class D, E MF10668
Conservative Strategy - Class D, E MF10667
Equity Balanced Strategy - Class D, E MF10671
- ----------------------- --------------------------------------- -----------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
- ----------------------- --------------------------------------- -----------------------------------
State Portfolio State Identification Number
- ----------------------- --------------------------------------- -----------------------------------
<S> <C> <C>
South Dakota Aggressive Strategy - Class D 9126
Aggressive Strategy - Class E 10625
Balanced Strategy - Class D 9127
Balanced Strategy - Class E 10626
Moderate Strategy - Class D 9128
Moderate Strategy - Class E 10627
Conservative Strategy - Class D 9129
Conservative Strategy - Class E 10628
Equity Balanced Strategy - Class D 9130
Equity Balanced Strategy - Class E 10629
- ----------------------- --------------------------------------- -----------------------------------
Texas Aggressive Strategy - Class D C-52744
Aggressive Strategy - Class E C-53652
Balanced Strategy - Class D C-52745
Balanced Strategy - Class E C-53653
Moderate Strategy - Class D C-52748
Moderate Strategy - Class E C-53656
Conservative Strategy - Class D C-52746
Conservative Strategy - Class E C-53654
Equity Balanced Strategy - Class D C-52747
Equity Balanced Strategy - Class E C-53655
- ----------------------- --------------------------------------- -----------------------------------
Vermont Aggressive Strategy - Class D 4/25/97-01
Aggressive Strategy - Class E 8/29/97-82
Balanced Strategy - Class D 4/25/97-02
Balanced Strategy - Class E 8/29/97-83
Moderate Strategy - Class D 4/25/97-03
Moderate Strategy - Class E 8/29/97-88
Conservative Strategy - Class D 4/25/97-04
Conservative Strategy - Class E 8/29/97-84
Equity Balanced Strategy - Class D 4/25/97-05
Equity Balanced Strategy - Class E 8/29/97-85
- ----------------------- --------------------------------------- -----------------------------------
Washington Aggressive Strategy - Class D C-55816
Aggressive Strategy - Class E C-56696
Balanced Strategy - Class D C-55815
Balanced Strategy - Class E C-56695
Moderate Strategy - Class D C-55814
Moderate Strategy - Class E C-56692
Conservative Strategy - Class D C-55813
Conservative Strategy - Class E C-56694
Equity Balanced Strategy - Class D C-55812
Equity Balanced Strategy - Class E C-56693
- ----------------------- --------------------------------------- -----------------------------------
West Virginia Aggressive Strategy - Class D MF-22119
Aggressive Strategy - Class E MF-22915
Balanced Strategy - Class D MF-22120
Balanced Strategy - Class E MF-22916
Moderate Strategy - Class D MF-22122
Moderate Strategy - Class E MF-22909
Conservative Strategy - Class D MF-22132
Conservative Strategy - Class E MF-22910
Equity Balanced Strategy - Class D MF-22141
Equity Balanced Strategy - Class E MF-22919
- ----------------------- --------------------------------------- -----------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- ----------------------- --------------------------------------- -----------------------------------
State Portfolio State Identification Number
- ----------------------- --------------------------------------- -----------------------------------
<S> <C> <C>
Wisconsin Aggressive Strategy - Class D 331116-03
Aggressive Strategy - Class E 335158-03
Balanced Strategy - Class D 331117-03
Balanced Strategy - Class E 335157-03
Moderate Strategy - Class D 331118-03
Moderate Strategy - Class E 335154-03
Conservative Strategy - Class D 331119-03
Conservative Strategy - Class E 335156-03
Equity Balanced Strategy - Class D 331120-03
Equity Balanced Strategy - Class E 335155-03
- ----------------------- --------------------------------------- -----------------------------------
Puerto Rico Aggressive Strategy - Class D S-19743
Aggressive Strategy - Class E S-19743-1
Balanced Strategy - Class D S-19744
Balanced Strategy - Class E S-19744-1
Moderate Strategy - Class D S-19750
Moderate Strategy - Class E S-19750-1
Conservative Strategy - Class D S-19747
Conservative Strategy - Class E S-19747-1
Equity Balanced Strategy - Class D S-19759
Equity Balanced Strategy - Class E S-19759-1
- ----------------------- --------------------------------------- -----------------------------------
</TABLE>
5
<PAGE>
Independent Accountants Report
To the Board of Trustees of the Frank Russell
Investment Company LifePoints Strategy Funds:
We have examined management's assertion about Frank Russell Investment Company
LifePoints Strategy Funds (comprised of the Equity Balanced Strategy Fund,
Aggressive Strategy Fund, Balanced Strategy Fund, Moderate Strategy Fund and
Conservative Strategy Fund) (the "Funds") compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940
(as interpreted in the Response of the Office of Chief Counsel, Division of
Investment Management, Ref. No. 92-237-CC) as of August 31, 1998, December 15,
1998 and December 31, 1998, included in the accompanying Management Statement
Regarding Compliance with Certain Provisions of the Investment Company Act of
1940. Management is responsible for the Funds' compliance with those
requirements. Our responsibility is to express an opinion on management's
assertion about the Funds' compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Funds' compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Our examinations as of August 31, 1998 and December 15, 1998
were made without prior notice to the Funds. Included among our procedures were
the following tests performed as of August 31, 1998, December 15, 1998 and
December 31, 1998, and with respect to the test of selected security purchases
and sales, for the period from December 31, 1997 (date of our last examination)
through December 31, 1998.
o Confirmation of the number of shares of beneficial interest of the
underlying funds owned by each Fund and held by a securities depository,
which uses the book entry method of accounting for securities (i.e. Frank
Russell Investment Management Company).
o Reconciliation of all such shares of beneficial interest to the books and
records of the Funds.
o Test of selected purchase and sales of underlying fund shares since our
last examination from the books and records of the Funds to confirmations
from Frank Russell Investment Management Company.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination of the Funds' compliance with
specified requirements.
<PAGE>
In our opinion, management's assertion that the Funds enumerated above were in
compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 (as interpreted in the Response of the Office of
Chief Counsel, Division of Investment Management, Ref. No.92-237-CC) as of
August 31, 1998, December 15, 1998 and December 31, 1998 with respect to
securities reflected in the investment accounts of the Funds is fairly stated,
in all material respects.
This report is intended solely for the information and use of management of the
Funds and the Securities and Exchange Commission and should not be used for any
other purpose.
Boston, Massachusetts /s/ PricewaterhouseCoopers LLP
February 15, 1999
<PAGE>
Management Statement Regarding Compliance
with Certain Provisions of the Investment Company Act of 1940
PricewaterhouseCoopers LLP February 15, 1999
One Post Office Square
Boston, MA 02109
We, as members of management of Frank Russell Investment Company LifePoints
Strategy Funds (comprised of the Equity Balanced Strategy Fund, Aggressive
Strategy Fund, Balanced Strategy Fund, Moderate Strategy Fund and Conservative
Strategy Fund) (the "Funds") are responsible for complying with the requirements
of subsections (b) and (c) of Rule 17f-2, of the Investment Company Act of 1940
(as interpreted in the Response of the Office of Chief Counsel, Division of
Investment Management, Ref. No. 92-237-CC). We are also responsible for
establishing and maintaining effective internal controls over compliance with
those requirements. We have performed an evaluation of the Funds' compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 (as interpreted
in the Response of the Office of Chief Counsel, Division of Investment
Management, Ref. No. 92-237-CC) as of August 31, 1998, December 15, 1998 and
December 31, 1998 and from December 31, 1997 (date of last examination) through
December 31, 1998.
Based on this evaluation, we assert that the Funds were in compliance with the
provisions of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 (as interpreted in the Response of the Office of Chief Counsel,
Division of Investment Management, Ref. No. 92-237-CC) as of August 31, 1998,
December 15, 1998 and December 31, 1998 and from December 31, 1997 (date of last
examination) through December 31, 1998, with respect to securities reflected in
the investment accounts of the Funds.
Very truly yours,
Frank Russell Investment Company
/s/ Lynn L. Anderson
_________________________________________
Lynn L. Anderson
President and Chief Executive Officer
/s/ Mark E. Swanson
_________________________________________
Mark E. Swanson
Treasurer and Chief Accounting Officer
