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Frank Russell Investment Company
Supplement Dated January 3, 2001
To the Statement of Additional Information (Fund of Funds)
Dated May 1, 2000 as Supplemented through September 29, 2000
and
To the Statement of Additional Information Dated October 31, 2000
The following information restates the sections entitled "Money Manager
Information" for the Diversified Equity, Equity I, Short Term Bond, and Real
Estate Securities Funds in their entirety in the Statements of Additional
Information of Frank Russell Investment Company.
MONEY MANAGER INFORMATION
Diversified Equity and Equity I Funds
Alliance Capital Management L.P. is a limited partnership owned (i) 35.3%
by Alliance Capital Management Holding L.P., a publicly traded limited
partnership and (ii) approximately 62.5% by AXA Financial, Inc. ("AXA
Financial"). AXA Financial is controlled by AXA, a publicly traded insurance
holding company. AXA Financial's indirect wholly-owned subsidiary, Alliance
Capital Management Corporation is the general partner of Alliance Capital
Management L.P. and Alliance Capital Management Holding L.P.
Barclays Global Fund Advisors N.A. is a wholly-owned subsidiary of Barclays
Global Investors, N.A.
Equinox Capital Management, LLC is 100% employee owned, with majority
ownership held by Ron Ulrich.
Jacobs Levy Equity Management, Inc. is owned by Bruce Jacobs and Kenneth
Levy.
Marsico Capital Management, LLC is owned 100% by Bank of America, N.A.
which in turn is a wholly owned subsidiary of Bank of America Corporation, a
publicly traded corporation.
Peachtree Asset Management is a division of SSB Citi Fund Management LLC.
SSB Citi Fund Management LLC is 100% owned by Salomon Smith Barney Holdings,
Inc. which is a wholly owned subsidiary of Citigroup Inc.
Strong Capital Management, Inc. is a corporation controlled by Richard S.
Strong.
Suffolk Capital Management, Inc. is a wholly owned subsidiary of Old Mutual
PLC, a publicly traded corporation.
Turner Investment Partners Inc. is a corporation controlled by Robert E.
Turner.
Westpeak Investment Advisors, L.P. ("Westpeak") is a limited partnership
that is a wholly-owned subsidiary of Nvest Holdings, Inc. ("Nvest Holdings").
Nvest Holdings is a wholly-owned subsidiary of Nvest Companies, L.P. ("Nvest
Companies"). Nvest Companies owns the entire limited partnership interest in
Westpeak. Nvest Companies' general partner, CDCAM North America, LLC is a
wholly-owned subsidiary of CDCAM North America Corporation ("CDCAM NA"). CDCAM
NA is the sole limited partner of Nvest Companies. CDCAM NA is a wholly-owned
subsidiary of CDC Asset Management, a French company ("CDCAM"). CDCAM is
majority-owned by CDC Finance and indirectly owned, through CDC Finance, Caisse
Nationale des Caisses D'Epargne and CNP Assurances, by Caisse des Depots et
Consignations ("CDC"). CDC is wholly-owned by the French Government.
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Short Term Bond Fund
BlackRock Financial Management, Inc. ("BlackRock") is a partially owned
independent subsidiary of the PNC Bank, a publicly traded bank. Currently, 14%
of BlackRock stock is publicly held, PNC Bank owns approximately 70%, and
BlackRock's employees own 16%.
Merganser Capital Management L.P. ("Merganser") is controlled by Merganser
Capital Management Corporation, its majority shareholder. Merganser Capital
Management Corporation is wholly-owned and controlled by Ed Bedrosian.
Pacific Investment Management Company, LLC ("PIMCO") is a wholly-owned
subsidiary of PIMCO Advisors LP. PIMCO Advisors LP is approximately 70% owned by
Allianz AG, a publicly traded company, and approximately 30% owned by Pacific
Life Insurance Company, a publicly traded company.
STW Fixed Income Management Ltd. ("STW") is a Bermuda exempted company.
William H. Williams, III is the sole shareholder of STW and controls STW.
Real Estate Securities Fund
AEW Management and Advisors, L.P. (formerly, AEW Capital Management, L.P.)
is a limited partnership that is a wholly-owned subsidiary of AEW Capital
Management, L.P., which in turn is a wholly-owned subsidiary of Nvest Holdings,
Inc. ("Nvest Holdings"). Nvest Holdings is a wholly-owned subsidiary of Nvest
Companies, L.P. ("Nvest Companies"). Nvest Companies owns the entire limited
partnership interest in AEW. Nvest Companies' general partner, CDCAM North
America, LLC is a wholly-owned subsidiary of CDCAM North America Corporation
("CDCAM NA"). CDCAM NA is the sole limited partner of Nvest Companies. CDCAM NA
is a wholly-owned subsidiary of CDC Asset Management, a French company
("CDCAM"). CDCAM is majority-owned by CDC Finance and indirectly owned, through
CDC Finance, Caisse Nationale des Caisses D'Epargne and CNP Assurances, by
Caisse des Depots et Consignations ("CDC"). CDC is wholly-owned by the French
Government.
Cohen & Steers Capital Management is a corporation whose two principals,
Robert H. Steers and Martin Cohen, control the corporation within the meaning of
the 1940 Act.
Security Capital Global Capital Management Group Incorporated is an
indirect, wholly-owned subsidiary of Security Capital, a publicly traded
corporation.
