<PAGE>
UNITED STATESUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
------------------------------
OMB Approval
------------------------------
OMB Number: 3235-0360
FORM N-17f-2 Expires:
Estimated average burden hours
per response..............0.05
------------------------------
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]
1. Investment Company Act File Number: Date examination completed:
9/28/99, 11/30/99,
811-3153 12/31/99
2. State Identification Number:
<TABLE>
<S> <C> <C> <C> <C> <C>
AL None AK Attach. AZ Attach. AR Attach. CA 505-2479 CO IC91-00-432
CT Attach. DE Attach. DC None FL 33630(9) GA 56882139 HI None
ID Attach. IL 9943800 IN 90-0072 IC IA Attach. KS Attach. KY M33793
LA 66004 ME Attach. MD Attach. MA Attach. MI Attach. MN R-34008
MS Attach. MO Attach. MT Attach. NE Attach. NV None NH None
NJ None NM Attach. NY Attach. NC 1394 ND Attach. OH 19712
OK Attach. OR 97-0413 PA 9004004MF RI None SC Attach. SD Attach.
TN Attach. TX Attach. UT B00117104 VT Attach VA 561 WA Attach.
WV Attach. WI Attach. WY 18620 PUERTO RICO Attach.
Other (specify):
</TABLE>
3. Exact Name of Investment Company as Specified in Registration Statement:
Frank Russell Investment Company
4. Address of principal executive office (number, street, city, state, zip
code):
909 A Street, Tacoma, WA 98402
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.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
<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 C, D, E 99-03432
Balanced Strategy - Class C, D, E 99-03431
Conservative Strategy - Class C, D, E 99-03430
Equity Aggressive Strategy - Class C, D, E 99-03429
Moderate Strategy - Class C, D, E 99-03428
- ---------------------------------------------------------------------------------------------------------------
Arizona Aggressive Strategy - Class C S-0060978
Aggressive Strategy - Class D S-0054180
Aggressive Strategy - Class E S-0055434
Balanced Strategy - Class C S-0060979
Balanced Strategy - Class D S-0054181
Balanced Strategy - Class E S-0055435
Conservative Strategy - Class C S-0060980
Conservative Strategy - Class D S-0054182
Conservative Strategy - Class E S-0055436
Equity Aggressive Strategy - Class C S-0060990
Equity Aggressive Strategy - Class D S-0054183
Equity Aggressive Strategy - Class E S-0055437
Moderate Strategy - Class C S-0061001
Moderate Strategy - Class D S-0054184
Moderate Strategy - Class E S-0055438
- ---------------------------------------------------------------------------------------------------------------
Arkansas Aggressive Strategy - Class C, D, E 90-M0059-28
Balanced Strategy - Class C, D, E 90-M0059-27
Conservative Strategy - Class C, D, E 90-M0059-24
Equity Aggressive Strategy - Class C, D, E 90-M0059-26
Moderate Strategy - Class C, D, E 90-M0059-25
- ---------------------------------------------------------------------------------------------------------------
Connecticut Aggressive Strategy - Class C, D, E 205897
Balanced Strategy - Class C, D, E 205900
Conservative Strategy - Class C, D, E 205899
Equity Aggressive Strategy - Class C, D, E 205898
Moderate Strategy - Class C, D, E 205901
- ---------------------------------------------------------------------------------------------------------------
Delaware Aggressive Strategy - Class C, D, E 5005
Balanced Strategy - Class C, D, E 5004
Conservative Strategy - Class C, D, E 5002
Equity Aggressive Strategy - Class C, D, E 5001
Moderate Strategy - Class C, D, E 5003
- ---------------------------------------------------------------------------------------------------------------
Idaho Aggressive Strategy - Class C, D, E 47928
Balanced Strategy - Class C, D, E 47927
Conservative Strategy - Class C, D, E 47925
Equity Aggressive Strategy - Class C, D, E 47924
Moderate Strategy - Class C, D, E 47926
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
State Portfolio State Identification Number
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Iowa Aggressive Strategy - Class C I-43109
Aggressive Strategy - Class D I-38420
Aggressive Strategy - Class E I-39262
Balanced Strategy - Class C I-43110
Balanced Strategy - Class D I-38424
Balanced Strategy - Class E I-39263
Conservative Strategy - Class C I-43111
Conservative Strategy - Class D I-38421
Conservative Strategy - Class E I-39264
Equity Aggressive Strategy - Class C I-43131
Equity Aggressive Strategy - Class D I-38422
Equity Aggressive Strategy - Class E I-39265
Moderate Strategy - Class C I-43112
Moderate Strategy - Class D I-38423
Moderate Strategy - Class E I-39266
- ---------------------------------------------------------------------------------------------------------------
Kansas Aggressive Strategy - Class C, D, E 97S0001180
Balanced Strategy - Class C, D, E 97S0001181
Conservative Strategy - Class C, D, E 97S0001182
Equity Aggressive Strategy - Class C, D, E 97S0001183
Moderate Strategy - Class C, D, E 97S0001184
- ---------------------------------------------------------------------------------------------------------------
Maine Aggressive Strategy - Class C MF0-7598
Aggressive Strategy - Class D MF-R99-11947
Aggressive Strategy - Class E MFR-954
Balanced Strategy - Class C MF0-7599
Balanced Strategy - Class D MF-R99-11946
Balanced Strategy - Class E MFR-953
Conservative Strategy - Class C MF0-7600
Conservative Strategy - Class D MF-R99-11945
Conservative Strategy - Class E MFR-952
Equity Aggressive Strategy - Class C MF0-7610
Equity Aggressive Strategy - Class D MF-R99-11944
Equity Aggressive Strategy - Class E MFR-956
Moderate Strategy - Class C MF0-7621
Moderate Strategy - Class D MF-R99-11943
Moderate Strategy - Class E MFR-951
- ---------------------------------------------------------------------------------------------------------------
Maryland Aggressive Strategy - Class C SM982868
Aggressive Strategy - Class D SM970582
Aggressive Strategy - Class E SM971278
Balanced Strategy - Class C SM982867
Balanced Strategy - Class D SM970583
Balanced Strategy - Class E SM971277
Conservative Strategy - Class C SM982866
Conservative Strategy - Class D SM970585
Conservative Strategy - Class E SM971276
Equity Aggressive Strategy - Class C SM982849
Equity Aggressive Strategy - Class D SM970586
Equity Aggressive Strategy - Class E SM971275
Moderate Strategy - Class C SM982852
Moderate Strategy - Class D SM970584
Moderate Strategy - Class E SM971279
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
State Portfolio State Identification Number
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Massachusetts Aggressive Strategy - Class C 003943
Aggressive Strategy - Class D 003942
Aggressive Strategy - Class E 003941
Balanced Strategy - Class C 003940
Balanced Strategy - Class D 003939
Balanced Strategy - Class E 003938
Conservative Strategy - Class C 003937
Conservative Strategy - Class D 003936
Conservative Strategy - Class E 003935
Equity Aggressive Strategy - Class C 003919
Equity Aggressive Strategy - Class D 003918
Equity Aggressive Strategy - Class E 003917
Moderate Strategy - Class C 003890
Moderate Strategy - Class D 003889
Moderate Strategy - Class E 003888
- ---------------------------------------------------------------------------------------------------------------
Michigan Aggressive Strategy - Class C 277958
Aggressive Strategy - Class D 275452
Aggressive Strategy - Class E 276043
Balanced Strategy - Class C 277960
Balanced Strategy - Class D 275451
Balanced Strategy - Class E 276042
Conservative Strategy - Class C 277959
Conservative Strategy - Class D 275449
Conservative Strategy - Class E 276041
Equity Aggressive Strategy - Class C 277952
Equity Aggressive Strategy - Class D 275448
Equity Aggressive Strategy - Class E 276040
Moderate Strategy - Class C 277950
Moderate Strategy - Class D 275450
Moderate Strategy - Class E 276039
- ---------------------------------------------------------------------------------------------------------------
Mississippi Aggressive Strategy - Class C MF-98-12-162
Aggressive Strategy - Class D MF-97-04-150
Aggressive Strategy - Class E MF-97-08-105
Balanced Strategy - Class C MF-98-12-163
Balanced Strategy - Class D MF-97-04-149
Balanced Strategy - Class E MF-97-08-106
Conservative Strategy - Class C MF-98-12-161
Conservative Strategy - Class D MF-97-04-147
Conservative Strategy - Class E MF-97-08-107
Equity Aggressive Strategy - Class C MF-98-12-152
Equity Aggressive Strategy - Class D MF-97-04-146
Equity Aggressive Strategy - Class E MF-97-08-108
Moderate Strategy - Class C MF-98-12-140
Moderate Strategy - Class D MF-97-04-148
Moderate Strategy - Class E MF-97-08-109
- ---------------------------------------------------------------------------------------------------------------
Missouri Aggressive Strategy - Class C, D, E 177875
Balanced Strategy - Class C, D, E 177874
Conservative Strategy - Class C, D, E 177872
Equity Aggressive Strategy - Class C, D, E 177871
Moderate Strategy - Class C, D, E 177873
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
State Portfolio State Identification Number
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Montana Aggressive Strategy - Class C, D, E 36808
Balanced Strategy - Class C, D, E 36809
Conservative Strategy - Class C, D, E 36810
Equity Aggressive Strategy - Class C, D, E 36811
Moderate Strategy - Class C, D, E 36812
- ---------------------------------------------------------------------------------------------------------------
Nebraska Aggressive Strategy - Class C 41387
Aggressive Strategy - Class D 43105
Aggressive Strategy - Class E 33,748
Balanced Strategy - Class C 41388
Balanced Strategy - Class D 43104
Balanced Strategy - Class E 33,749
Conservative Strategy - Class C 41389
Conservative Strategy - Class D 43013
Conservative Strategy - Class E 33,750
Equity Aggressive Strategy - Class C 41393
Equity Aggressive Strategy - Class D 43102
Equity Aggressive Strategy - Class E 33,751
Moderate Strategy - Class C 41410
Moderate Strategy - Class D 43011
Moderate Strategy - Class E 33,752
- ---------------------------------------------------------------------------------------------------------------
New Mexico Aggressive Strategy - Class C 696013
Aggressive Strategy - Class D 302594
Aggressive Strategy - Class E 302593
Balanced Strategy - Class C 696014
Balanced Strategy - Class D 302592
Balanced Strategy - Class E 302591
Conservative Strategy - Class C 696015
Conservative Strategy - Class D 302590
Conservative Strategy - Class E 302589
Equity Aggressive Strategy - Class C 696025
Equity Aggressive Strategy - Class D 302582
Equity Aggressive Strategy - Class E 302581
Moderate Strategy - Class C 696036
Moderate Strategy - Class D 302573
Moderate Strategy - Class E 302572
- ---------------------------------------------------------------------------------------------------------------
New York Aggressive Strategy - Class C, D, E S27-89-97
Balanced Strategy - Class C, D, E S27-89-98
Conservative Strategy - Class C, D, E S27-90-00
Equity Aggressive Strategy - Class C, D, E S27-90-01
Moderate Strategy - Class C, D, E S27-89-99
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
State Portfolio State Identification Number
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
North Dakota Aggressive Strategy - Class C X461
Aggressive Strategy - Class D S750
Aggressive Strategy - Class E T495
Balanced Strategy - Class C X462
Balanced Strategy - Class D S751
Balanced Strategy - Class E T496
Conservative Strategy - Class C X463
Conservative Strategy - Class D S752
Conservative Strategy - Class E T497
Equity Aggressive Strategy - Class C X467
Equity Aggressive Strategy - Class D S753
Equity Aggressive Strategy - Class E T498
Moderate Strategy - Class C X484
Moderate Strategy - Class D S754
Moderate Strategy - Class E T499
- ---------------------------------------------------------------------------------------------------------------
Oklahoma Aggressive Strategy - Class C SE-2009926
Aggressive Strategy - Class D SE-2009927
Aggressive Strategy - Class E SE-2009928
Balanced Strategy - Class C SE-2009929
Balanced Strategy - Class D SE-2009930
Balanced Strategy - Class E SE-2009931
Conservative Strategy - Class C SE-2009932
Conservative Strategy - Class D SE-2009933
Conservative Strategy - Class E SE-2009934
Equity Aggressive Strategy - Class C SE-2009935
Equity Aggressive Strategy - Class D SE-2009936
Equity Aggressive Strategy - Class E SE-2009937
Moderate Strategy - Class C SE-2009938
Moderate Strategy - Class D SE-2009942
Moderate Strategy - Class E SE-2009943
- ---------------------------------------------------------------------------------------------------------------
Puerto Rico Aggressive Strategy - Class C S-19743-2
Aggressive Strategy - Class D S-19743
Aggressive Strategy - Class E S-19743-1
Balanced Strategy - Class C S-19744-2
Balanced Strategy - Class D S-19744
Balanced Strategy - Class E S-19744-1
Conservative Strategy - Class C S-19747-2
Conservative Strategy - Class D S-19747
Conservative Strategy - Class E S-19747-1
Equity Aggressive Strategy - Class C S-19759-2
Equity Aggressive Strategy - Class D S-19759
Equity Aggressive Strategy - Class E S-19759-1
Moderate Strategy - Class C S-19750-2
Moderate Strategy - Class D S-19750
Moderate Strategy - Class E S-19750-1
- ---------------------------------------------------------------------------------------------------------------
South Carolina Aggressive Strategy - Class C, D, E MF10670
Balanced Strategy - Class C, D, E MF10669
Conservative Strategy - Class C, D, E MF10667
Equity Aggressive Strategy - Class C, D, E MF10671
Moderate Strategy - Class C, D, E MF10668
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
State Portfolio State Identification Number
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
South Dakota Aggressive Strategy - Class C 18048
Aggressive Strategy - Class D 9126
Aggressive Strategy - Class E 10625
Balanced Strategy - Class C 18047
Balanced Strategy - Class D 9127
Balanced Strategy - Class E 10626
Conservative Strategy - Class C 18046
Conservative Strategy - Class D 9129
Conservative Strategy - Class E 10628
Equity Aggressive Strategy - Class C 18069
Equity Aggressive Strategy - Class D 9130
Equity Aggressive Strategy - Class E 10629
Moderate Strategy - Class C 18056
Moderate Strategy - Class D 9128
Moderate Strategy - Class E 10627
- ---------------------------------------------------------------------------------------------------------------
Tennessee Aggressive Strategy - Class C M98-5134
Aggressive Strategy - Class D RM99-0765
Aggressive Strategy - Class E RM99-0765
Balanced Strategy - Class C M98-5134
Balanced Strategy - Class D RM99-0765
Balanced Strategy - Class E RM99-0765
Conservative Strategy - Class C M98-5134
Conservative Strategy - Class D RM99-0765
Conservative Strategy - Class E RM99-0765
Equity Aggressive Strategy - Class C M98-5134
Equity Aggressive Strategy - Class D RM99-0765
Equity Aggressive Strategy - Class E RM99-0765
Moderate Strategy - Class C M98-5134
Moderate Strategy - Class D RM99-0765
Moderate Strategy - Class E RM99-0765
- ---------------------------------------------------------------------------------------------------------------
Texas Aggressive Strategy - Class C C-57981
Aggressive Strategy - Class D C-52744
Aggressive Strategy - Class E C-53652
Balanced Strategy - Class C C-57982
Balanced Strategy - Class D C-52745
Balanced Strategy - Class E C-53653
Conservative Strategy - Class C C-57983
Conservative Strategy - Class D C-52746
Conservative Strategy - Class E C-53654
Equity Aggressive Strategy - Class C C-57987
Equity Aggressive Strategy - Class D C-52747
Equity Aggressive Strategy - Class E C-53655
Moderate Strategy - Class C C-58012
Moderate Strategy - Class D C-52748
Moderate Strategy - Class E C-53656
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
State Portfolio State Identification Number
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Vermont Aggressive Strategy - Class C 1/11/99-04
Aggressive Strategy - Class D 4/25/97-01
Aggressive Strategy - Class E 8/29/97-82
Balanced Strategy - Class C 1/07/99-64
Balanced Strategy - Class D 4/25/97-02
Balanced Strategy - Class E 8/29/97-83
Conservative Strategy - Class C 1/07/99-63
Conservative Strategy - Class D 4/25/97-04
Conservative Strategy - Class E 8/29/97-84
Equity Aggressive Strategy - Class C 1/11/99-13
Equity Aggressive Strategy - Class D 4/25/97-05
Equity Aggressive Strategy - Class E 8/29/97-85
Moderate Strategy - Class C 1/11/99-27
Moderate Strategy - Class D 4/25/97-03
Moderate Strategy - Class E 8/29/97-88
- ---------------------------------------------------------------------------------------------------------------
Washington Aggressive Strategy - Class C C-60751
Aggressive Strategy - Class D C-55816
Aggressive Strategy - Class E C-56696
Balanced Strategy - Class C C-60750
Balanced Strategy - Class D C-55815
Balanced Strategy - Class E C-56695
Conservative Strategy - Class C C-60749
Conservative Strategy - Class D C-55813
Conservative Strategy - Class E C-56694
Equity Aggressive Strategy - Class C C-60740
Equity Aggressive Strategy - Class D C-55812
Equity Aggressive Strategy - Class E C-56693
Moderate Strategy - Class C C-60727
Moderate Strategy - Class D C-55814
Moderate Strategy - Class E C-56692
- ---------------------------------------------------------------------------------------------------------------
West Virginia Aggressive Strategy - Class C MF-33895
Aggressive Strategy - Class D MF-22119
Aggressive Strategy - Class E MF-22915
Balanced Strategy - Class C MF-33894
Balanced Strategy - Class D MF-22120
Balanced Strategy - Class E MF-22916
Conservative Strategy - Class C MF-33893
Conservative Strategy - Class D MF-22132
Conservative Strategy - Class E MF-22910
Equity Aggressive Strategy - Class C MF-33901
Equity Aggressive Strategy - Class D MF-22141
Equity Aggressive Strategy - Class E MF-22919
Moderate Strategy - Class C MF-33903
Moderate Strategy - Class D MF-22122
Moderate Strategy - Class E MF-22909
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
State Portfolio State Identification Number
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Wisconsin Aggressive Strategy - Class C 359880-03
Aggressive Strategy - Class D 331116-03
Aggressive Strategy - Class E 335158-03
Balanced Strategy - Class C 359881-03
Balanced Strategy - Class D 331117-03
Balanced Strategy - Class E 335157-03
Conservative Strategy - Class C 359882-03
Conservative Strategy - Class D 331119-03
Conservative Strategy - Class E 335156-03
Equity Aggressive Strategy - Class C 359877-03
Equity Aggressive Strategy - Class D 331120-03
Equity Aggressive Strategy - Class E 335155-03
Moderate Strategy - Class C 359869-03
Moderate Strategy - Class D 331118-03
Moderate Strategy - Class E 335154-03
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
[LETTERHEAD OF PRICE WATERHOUSE]
Report of Independent Accountants
To the Board of Trustees of
Frank Russell Investment Company
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, about Frank Russell Investment Company series' of funds (comprised
of Equity I, Equity II, Equity III, Equity Q, International, Fixed I, Fixed III,
Diversified Equity, Special Growth, Equity Income, Quantitative Equity,
International Securities, Diversified Bond, Short Term Bond, Multistrategy Bond,
Real Estate Securities, Emerging Markets, Money Market, U.S. Government Money
Market, Tax Free Money Market, Tax Exempt Bond, Tax-Managed Large Cap, Tax-
Managed Small Cap, Equity Aggressive Strategy, Aggressive Strategy, Balanced
Strategy, Moderate Strategy, and Conservative Strategy (the "Funds")) compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 under the
Investment Company Act of 1940 ("the Act") as of September 28, 1999, November
30, 1999, and December 31, 1999. 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 conducted in accordance with attestation 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. Included among our procedures were
the following tests performed as of September 28, 1999 and November 30, 1999,
and December 31, 1999, and with respect to agreement of security purchases and
sales, for the period from December 31, 1998 (the date of our last examination),
through December 31, 1999:
. Confirmation of the number of shares of beneficial interest of
investments in affiliated registered investment companies 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).
. Reconciliation of all such shares of beneficial interest to
the books and records of the Funds.
. Agreement of 25 security purchases and 21 security sales or maturities
since our last report from the books and records of the Company to
broker confirmations.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Funds' compliance
with specified requirements.
<PAGE>
[LETTERHEAD OF PRICEWATERHOUSE COOPERS]
To the Board of Trustees of
Frank Russell Investment Company
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 of September 28, 1999, November 30, 1999, and
December 31, 1999 with respect to securities reflected in the investment account
of the Funds is fairly stated, in all material respects.
This report is intended solely for the information and use of the Board of
Trustees, management, and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.
/s/ Pricewaterhouse Coopers, LLP
- --------------------------------
Seattle, Washington
February 16, 2000
<PAGE>
Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940
We, as members of management of Frank Russell Investment Company (a series of
funds comprised of Equity I, Equity II, Equity III, Equity Q, International,
Fixed I, Fixed III, Diversified Equity, Special Growth, Equity Income,
Quantitative Equity, International Securities, Diversified Bond, Short Term
Bond, Multistrategy Bond, Real Estate Securities, Emerging Markets, Money
Market, U.S. Government Money Market, Tax Free Money Market, Tax Exempt Bond,
Tax-Managed Large Cap, Tax-Managed Small Cap, Equity Aggressive Strategy,
Aggressive Strategy, Balanced Strategy, Moderate Strategy, and Conservative
Strategy (the "Funds")), are responsible for complying with the requirements of
subsections (b) and (c) of Rule 17f-2, Custody of Investments by Registered
Management Investment Companies, of the Investment Company Act of 1940. 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 of September 28, 1999, November 30, 1999, and December 31, 1999, and from
December 31, 1998 through December 31, 1999.
Based on this evaluation, we assert that the Funds were in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of September 28, 1999, November 30, 1999, and December 31, 1999,
and from December 31, 1998 through December 31, 1999 with respect to securities
reflected in the investment account of the Funds.
Frank Russell Investment Company
By: /s/ Mark Swanson
----------------------------------------
Mark Swanson
----------------------------------------
Treasurer and Chief Accounting Officer
March 9, 2000
----------------------------------------
Date
