PRODUCT HIGHLIGHTS SHEET

Transcription

1 Prepared on: 21/11/14 This Product Highlights Sheet is an important document. It highlights the key terms and risks of the Russell Emerging Markets Equity Fund (the "Fund") and complements the prospectus for the Fund (the "Prospectus") (which consists of the supplement for the Fund (the " Supplement") and the Irish prospectus for the Fund (the " Prospectus") 1. It is important to read the Prospectus before deciding whether to purchase shares in the Fund ("Shares"). If you do not have a copy, please contact us for one. You should not invest in the Fund if you do not understand it or are not comfortable with the accompanying risks. Product Type Manager If you wish to purchase Shares in the Fund, you will need to make an application in the manner set out in the Capitalised terms shall have the same meaning as set out in the RUSSELL INVESTMENT COMPANY PLC (the Company ) RUSSELL EMERGING MARKETS EQUITY FUND Open-ended investment company Russell Investments Ireland Limited Launch Date 23 October 2002 Custodian Trustee State Street Custodial Services (Ireland) Limited Dealing Frequency Capital Guaranteed No Expense Ratio (FY ended 31 March 2014) Name of Guarantor Not Applicable Class Currency USD State Street Custodial Services (Ireland) Limited Every Business Day (in Ireland) 1.64% (Class J shares) PRODUCT SUITABILITY WHO IS THE PRODUCT SUITABLE FOR? The Fund is only suitable for investors who: seek capital appreciation; have an investment time horizon of 5 to 7 years; and are prepared to accept a moderate to high level of volatility and the associated risks of an equity fund investing in Emerging Markets. The Fund may not be suitable for investors who are not comfortable with the level of risk associated with Emerging Markets. "Suitability" Supplement. KEY PRODUCT FEATURES WHAT ARE YOU INVESTING IN? You are investing in a sub-fund of the Company. The Company is an investment company with variable capital organised under the laws of Ireland as a public limited company and is organised in the form of an umbrella fund with segregated liability between sub-funds. It has been approved by the Irish Central Bank as a UCITS. The Fund will seek to achieve capital appreciation by investing primarily in equity securities in Emerging Markets throughout the world or in new issues for which application will be sought on a Regulated Market. Multi-style, multi-manager diversification is implemented in managing the Fund's investments. You are investing in Share Class J (an Accumulation Share Class) where income received will be reinvested in the capital of the Fund on the Distribution Date. Investment Strategy The Fund is managed by one or more Money Managers appointed by the Manager. The Manager has the discretion to change the Money Managers of the Funds on a quarterly basis. The Fund may hold securities of companies listed or traded on Regulated Markets worldwide that are not incorporated in Emerging "Russell Emerging Markets Equity 1 The Prospectus is available for collection at the office of the Representative during its normal business hours

2 Markets but which receive the majority of their total revenue from Emerging Market countries. Investment in warrants may not exceed 5% of the Fund s net assets. Investments in Pakistan shall not exceed 30% and investment in China 40% of the Fund s net assets. At all times, at least two-thirds of the Fund s total assets (without taking into account ancillary liquid assets) will be invested in the foregoing instruments (excluding convertibles) of issuers domiciled or which receive the majority of their total revenue from Emerging Market countries. The Fund will not be concentrating on any specific industry sector but will pursue a policy of active stock selection and active country allocation in the markets in which it operates. For efficient portfolio management purposes, the Fund may engage in currency hedging transactions to hedge against exchange rate risk. The Fund will also carry out spot foreign exchange transactions to meet its investment requirements. The Fund may also employ investment techniques and financial derivative instruments for efficient portfolio management and/or investment purposes. Fund" subsection of the Investment Objectives and Policies" Parties Involved WHO ARE YOU INVESTING WITH? Manager: Russell Investments Ireland Limited Adviser: Russell Investments Limited Representative: Russell Investment Group Private Limited Custodian and Trustee: State Street Custodial Services (Ireland) Limited KEY RISKS WHAT ARE THE KEY RISKS OF THIS INVESTMENT? Past performance is not necessarily a guide to the future. The value of the Fund and the dividends may rise or fall and an investor may not recover the full amount invested. These risk factors may cause you to lose some or all of your investments. Refer to Management and Administration Markets and Credit Risks You are exposed to equity risks in Emerging Markets The equities that the Fund invests in may incur significant losses as the price of equities fluctuate on a daily basis depending on market conditions. You are exposed to counterparty and settlement risks The Fund will be exposed to credit risk on parties with whom it trades and will bear the risk of settlement default. Product Specific Risks You are exposed to Emerging Markets risks The Fund has a significant exposure to Emerging Markets and may only be suitable for well-informed investors. Fundamental risks associated with these markets are: (i) accounting standards (absence of uniform accounting, auditing and financial reporting standards and practices); (ii) business risk (crime and corruption which pose a risk to businesses); (iii) country risk (the Fund s assets may be affected by political, legal, economic and fiscal uncertainties); (iv) currency risk (currencies in which investments are denominated may be unstable, subject to significant depreciation and not be freely convertible); (v) custody risk (custodians may not be able to offer the level of service and safekeeping, settlement and administration of securities that is customary in developed markets and the Fund may not be recognised as the owner of securities held on its behalf by a sub-custodian); (vi) disclosure (less complete and reliable fiscal and other information may be available to investors); (vii) political (government actions such as expropriation, confiscatory taxation, nationalisation and foreign investment restrictions may significantly affect the value of the Fund s portfolio securities); (viii) tax (the taxation system in some Emerging Markets is subject to varying interpretations, frequent changes and inconsistent enforcement and tax laws and practices may not be as established as in developed nations); (ix) economic (the economy of Emerging Markets is heavily export oriented and is dependent upon international trade; (x) regulatory Risk Factors sub-section of "The Funds" - 2 -

3 (some Emerging Markets may have a lower level of regulation, enforcement of regulations and monitoring of investors activities than more developed markets); (xi) legal (such risks include the untested nature of independence of the judiciary and its immunity from economic, political or nationalistic influences, inconsistencies among laws and government and ministerial orders, lack of judicial and administrative guidance on interpreting applicable laws, high degree of discretion on the part of government authorities, conflicting local, regional and federal laws and regulations, inexperience of courts in interpreting new legal norms, and unpredictability of enforcement of foreign judgments and foreign arbitration awards); (xii) market (securities markets of developing countries are not as large as the more established securities markets and have considerably less trading volume, which can result in a lack of liquidity and high price volatility. Investments in securities in frontier Emerging Market countries are highly speculative in nature and an investment in the Fund s shares must be viewed as highly speculative in nature and may not be suitable for an investor who is not able to afford the loss of their entire investment); (xiii) settlement (registrars may not be subject to effective government supervision and may not be independent from issuers hence the Fund may suffer loss arising from potential registration problems); (xiv) Central and Eastern Europe (there are settlement and safekeeping risks in markets in Central and Eastern Europe because physical securities may not exist in certain countries and ownership of securities is evidenced only on the issuer s register of shareholders). You are exposed to currency risks The Fund s investments may be acquired in a wide range of currencies and changes in exchange rates between currencies may cause the value of an investment in the Fund to fluctuate. The Fund may use foreign exchange contracts to alter the currency exposure characteristics of transferable securities it holds and the performance of the Fund may be strongly influenced by movements in foreign exchange rates if the Fund's currency position do not correspond with the securities position. You are exposed to the risks associated with financial derivative instruments The Fund may invest in financial derivative instruments which involve risks different from, and in certain cases greater than, risks presented by more traditional investments. You are exposed to risks associated with efficient portfolio management The Fund may employ techniques and instruments relating to transferable securities, money market instruments and/or other financial instruments for efficient portfolio management purposes. FEES AND CHARGES Payable by you: You will need to pay the following fees and charges as a percentage of your gross investment sum: Sales Charge Currently 0% Repurchase Charge Currently NIL Conversion Charge Up to a maximum of 5% The Fund may charge a dilution adjustment on subscriptions and/or repurchases. Payable by the Fund from invested proceeds: The Fund will pay the following fees and charges to the Manager, Trustee and other parties: Fees and Charges Supplement. Management Fee 1.50% (Class J) Sum of Administration, Up to 0.40% Custodian and Trustee Fee The Fund may pay a performance fee on an annual basis that is equal to the sum of performance fees to be paid to the Fund s Performance Fee Money Managers. The method used to calculate the performance fee may be different from the method specified in the Code on Collective Investment Schemes

4 VALUATIONS AND EXITING FROM THIS INVESTMENT HOW OFTEN ARE VALUATIONS AVAILABLE? 1 Business Day after relevant Dealing Day published in the Business Times. HOW CAN YOU EXIT FROM THIS INVESTMENT AND WHAT ARE THE RISKS AND COSTS IN DOING SO? You may cancel your subscription into the Fund on the same day that the subscription is made by submitting a cancellation instruction to the Administrator before the Trade Cut-Off Time for the Fund. You can exit the Fund at any time by submitting to the Representative or its approved distributors a written repurchase request in such form as required by the Representative. You will receive your sales proceeds within 14 calendar days from the relevant Dealing Day. Your exit price is determined by the relevant NAV per Share as determined on the Dealing Day on which they are deemed to be repurchased. As Shares are issued on a forward pricing basis, the NAV per Share will not be ascertainable at the time of application. investors should check with the approved distributors regarding the applicable cut-off time in in relation to their applications. The repurchase proceeds that you will receive will be the repurchase price multiplied by the number of units sold. An example is as follows: Number of Shares to be x Repurchase = Repurchase repurchased price proceeds 1,000 shares x USD 110 = USD 110,000 CONTACT INFORMATION HOW DO YOU CONTACT US? Russell Investment Group Private Limited, 20 Cecil Street, Equity Plaza #17-05/06 Equity Plaza at telephone number Repurchase of Shares Supplement for further information on valuation and exiting from the Fund

5 Business Day: Dealing Day: Distribution Date: Emerging Markets: Money Manager: Regulated Market: UCITS APPENDIX: GLOSSARY OF TERMS means a day (excluding Saturday and Sunday) on which Irish banks are open for business, provided that the Directors from time to time may, upon advance notice to shareholders, designate as a business day a day on which Irish banks are not open for business as aforesaid; means any Business Day or Business Days as the Directors may from time to time determine, provided that there shall, in respect of each Fund, be at least one Dealing Day per fortnight and unless otherwise determined and notified to the Central Bank, as and from the date of the Prospectus: (i) every Business Day following the Initial Offer Period for each Fund shall be a Dealing Day; means for any Class of Shares of a Fund a date on which income distributions for the Fund are to be made; means markets that are typically those of poorer or less developed countries which exhibit lower levels of economic and/or capital market development, and higher levels of share price and currency volatility; means the person or persons from time to time appointed by the Manager to act as a money manager which may include affiliates of the Manager; means any stock exchange or regulated market in the European Union or a stock exchange or regulated market which is provided for in the Articles of Association, details of which are set out in Schedule I of the Prospectus; and means an undertaking for collective investment in transferable securities established pursuant to the Regulations European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as such may be amended, supplemented and replaced from time to time and any rules made by the Central Bank of Ireland pursuant to them