OtherMaterialInformationRussellInvestmentFunds

26September2016

2

Tableofcontents1. Introduction.............................................................................................................................32. Funds..........................................................................................................................................33. Keypartyinformation.........................................................................................................3a. Manager.....................................................................................................................................3b. Investmentmanager............................................................................................................5c. Supervisor................................................................................................................................5d. Custodian..................................................................................................................................6e. Administrationmanager....................................................................................................6f. Other...........................................................................................................................................64. ManagerandSupervisor'sIndemnity..........................................................................65. Keyterms..................................................................................................................................76. Fund-specificinformation...............................................................................................127. Investmentinformation...................................................................................................128. Taxation...................................................................................................................................139. BasisofestimatesforfundchargesinPDS..............................................................1610. ConflictsofInterest............................................................................................................1611. Risks..........................................................................................................................................1712. MaterialContracts...............................................................................................................1913. Investingthroughadministrationandcustodialservices.................................1914. Moreinformationaboutmarketindices...................................................................1915. Noguarantee.........................................................................................................................20Glossary............................................................................................................................................21

3

1. IntroductionThisOtherMaterialInformationDocument("Document")hasbeenpreparedtomeettherequirementsofsection57(1)(b)(ii)oftheFinancialMarketsConductAct2013("FMCAct")andclause52ofSchedule4oftheFinancialMarketsConductRegulations2014("FMCRegulations").AlllegislationreferredtointhisDocumentcanbeviewedatwww.legislation.govt.nz.InthisDocument,"you"or"your"referstoapersonorentitythatinvestsintheRussellInvestmentFunds(the“Funds”),whetherdirectlyorthroughawrapplatformorsimilaradministrationandcustodialservice.Ifyouholdunitsthroughawrapplatformorsimilaradministrationandcustodialservice,pleasenotepage19"Investingthroughadministrationandcustodialservices(e.g.wrapplatforms)"."We","us","our"or"IIS"referstoImplementedInvestmentSolutionsLimitedasthemanageroftheretailinvestmentfundssetoutinsection2,"Funds"below.CapitalisedtermshavethesamemeaningasintheTrustDeedfortheImplementedInvestmentSolutionsFunds("TrustDeed"),unlesstheyareotherwisedefinedinthisDocument.ThereisaGlossaryofdefinedtermsonpage21.Sometermsaredefinedinthedocumentitself.AProductDisclosureStatement("PDS")fortheofferofUnitsintheFundsisalsoavailable.Ifyouarea'retailinvestor'undertheFMCActyoumustbegivenacopyofthePDSbeforewecanacceptyourapplicationforUnits.

2. FundsThisdocumentrelatestotheofferofunitsinthefollowingfunds(“Funds”):

• RussellInvestmentsGlobalSharesFund• RussellInvestmentsHedgedGlobalSharesFund• RussellInvestmentsNZSharesFund• RussellInvestmentsNZFixedInterestFund• RussellInvestmentsGlobalFixedInterestFund

TheFundsareconstitutedwithinaregisteredschemecalledthe"RussellInvestmentFunds",registeredschemenumberSCH10586("Scheme").TheSchemeisgovernedbytheTrustDeeddated29July2016andtheFundsareinvestedinaccordancewiththeirstatementofinvestmentpolicyandobjectives("SIPO")dated15August2016.YoucangetanelectroniccopyoftheTrustDeedandSIPOfromtheschemeregisterontheDisclosewebsitewww.business.govt.nz/disclose/.

3. Keypartyinformation

a. ManagerImplementedInvestmentSolutionsLimited(“IIS”)isthemanageroftheFunds.IISisafundmanagementcompanyspecialisinginestablishingandmanagingNewZealandfunds.WithadeepunderstandingofNewZealand’sinvestmentmanagementindustry,IIS’sfocusisonworkingwithfundmanagersrangingfromlarge,globalplayerstodomesticboutiquemanagers.Ourobjectiveistominimisethecomplianceandregulatoryburdenfortheinvestmentmanagersthatweworkwith.Thisinturnenablesinvestorstoaccessthesemanagers’investmentexpertisewithinfundsandsolutionsthathavebeentailoredforNewZealand‘staxandlegislativeenvironment.WeweregrantedalicencetoactasthemanagerofaregisteredschemeundertheFMCActbytheFinancialMarketsAuthority("FMA")on25August2015.Thelicencehasa5yeartermto25August2020,subjecttousmaintainingthesameorbetterstandardofcapability,governanceandcomplianceaswasthecasewhentheFMAassessedourlicenceapplication.Thelicenceissubjecttothenormalconditions

4

imposedundertheFMCActandtheFMCRegulations,andthestandardconditionsimposedbytheFMA.

Ourfunctions:

IIS’skeyrolesandresponsibilitiesare:

o Preparationofdisclosurematerial.o PromotionanddistributionoftheFunds.o Establishing,reviewingandmaintainingtheStatementofInvestmentPolicyand

Objectives.o OngoingmanagementandoversightoftheFunds.Thisincludesappointing,

managingandmonitoringspecialistprovidersforfunctionslike:§ Administrationmanagement,and§ Investmentmanagement.

o Managingclientrelationships.o Monitoringinvestmentperformanceandoutcomes.

ThedirectorsofIISare:

• AnthonyRobertJohnEdmonds,BComWellington

Anthonyhasover20years'experienceintheNewZealandinvestmentmanagementindustry.HeestablishedIISin2011.PriortoestablishingIIS,Anthonyprovidedconsultancyservicestoarangeofinvestmentcompanies,whichincludedRaboplus,Kiwibank,HSBC,RussellInvestments,FisherFunds,ANZNationalBankandMintAssetManagement.PreviouslyAnthonywastheHeadofSalesandMarketingatAMPCapitalInvestors.

• DavidStanleyStevensWellington

Davidisaretiredseniorbanker.Inrecentyears,throughtrusteeships,hehasbeeninvolvedinthemanagementandcontrolofseverallargeemploymentrelatedsuperannuationschemes.Healsoremainsinvolvedwithanumberofcharitabletrusts.Inhisrolewiththeseorganisationshehasdevelopedconsiderableexperienceintherequirementsofgoodcorporategovernanceandthemanagementofwholesaleinvestmentfunds.

• AlisterVanderMaas,BMS(Hons),CFAAuckland

AlisteristheManagingDirectorforRussellInvestmentGroupLimitedwhereheisfocusedonthemanagementandstrategyoftheNewZealandbusiness.HejoinedRussellin2006asaConsultantandbecameHeadofConsultingin2008.PriortojoiningRussell,AlisterlivedintheUnitedKingdomwhereheworkedinvariousrolesinthetransitionmanagementindustry.HisclientbaseconsistedmainlyofpensionfundsintheUK,Europe,MiddleEastandAustralia.

• IanHowardRussonB.A.(Hons)Wellington

IanisalicensedindependenttrusteeundertheFMCAct(andisatrusteeforvarioussuperannuationschemes),aswellasbeingaseniormemberofBNZ’sinstitutionalbankingdivision.PriortojoiningBNZ,IanspentseveralyearsattheReserveBankofNewZealand,havingalsopreviouslyworkedinglobalbrokerageandinvestmentfirmsinLondon,Toronto,andHongKong.

5

Ourdirectorsandtheiraddressesmaychangefromtimetotimewithoutnotice.TheshareholdersofImplementedInvestmentSolutionsLimitedare:CentricInvestmentSolutionsLimited* 60%RussellInvestmentGroupLimited 15%RebeccaBronwenGarveyEele,DavenportsHarbourTrustee(2007)LimitedandJohnathanJamesEele

15%

AndrewWallaceBrockwayandMaryLouiseBrockway 10%*CentricInvestmentSolutionsLimitedisownedbythefamilyinterestsofAnthonyEdmonds.CentricInvestmentSolutionsLimitedistheultimateholdingcompanyofIIS.

b. InvestmentmanagerRussellInvestmentGroupLimitedistheinvestmentmanagerandinvestmentadviser("InvestmentManager")inrespectoftheFunds.RussellInvestmentGroupLimitedispartofRussellInvestments.RussellInvestmentsisaglobalassetmanagerwithcorecapabilitiesthatextendacrosscapitalmarketsinsights,managerresearch,assetallocation,portfolioimplementationandfactorexposures.RussellInvestmentsdrawsonitsuniquecombinationofcorecapabilitiestodelivermulti-assetsolutionstomeetinvestors'needs.Theiranalystsseektoidentifysuperiorinvestmentmanagertalentthroughaproprietaryresearchprocessbasedonobjectiveanalysisandon-sitein-depthfacetofaceinterviews.ThecumulativeknowledgegainedfromtheirresearchisthefoundationforallofRussellInvestment'sproductsandservices.Thismeansthatclientsgettheworld'sleadinginvestmentideascontributingtotheperformanceoftheirinvestment.ThedirectorsoftheRussellInvestmentGroupLimitedare:

• PeterJohnGunningSydney,Australia

• AlisterVanderMaasAuckland

• FionaAliceLintottAuckland

• DavidLewisMacKenzieSydney,Australia

c. SupervisorPublicTrustistheSupervisor("Supervisor")oftheFunds.PublicTrust'sboardmembersare:

• SarahMaryRoberts(Chair)Auckland

• Dilkhush(Dinu)HarryAuckland

• HueiMin(Lyn)LimAuckland

• SimonCraddockAuckland

• FionaAnnOliverAuckland

• DianaMariePuketapuAuckland

• JohnDuncanAuckland

6

PublicTrust'sboardmembersmaychangefromtimetotimewithoutnoticetoyou.YoucancontacttheboardmembersoftheSupervisorattheSupervisor'saddress.PublicTrustisastatutorycorporationandCrownentityestablishedandconstitutedinNewZealandon1March2002underthePublicTrustAct2001.ThesupervisorisresponsibleforsupervisionofIISandtheScheme,including:• ActingonbehalfoftheScheme’sinvestorsinrelationtoIISandany

contraventionofIIS'sissuerobligations;• SupervisingtheperformancebyIISofitsfunctionsandthefinancialpositionof

IISandtheScheme;and• HoldingtheScheme’sassetsorensuringthattheassetsareheldinaccordance

withapplicablelegislativerequirements.On17September2012,theSupervisorwasgrantedalicencepursuanttosection16(1)theFinancialMarketsSupervisorsAct2011.Thelicencewasvariedasat10April2015.Fulldetailsandconditionswhichapplyinrespectofthelicencecanbefoundonhttp://www.publictrust.co.nz/corporate-trustee-services/who-are-we.

d. CustodianPublicTrustRIFNomineesLimited("Custodian"),awhollyownedsubsidiaryofPublicTrust,isthecustodianoftheFunds'assets.AsrequiredbytheFMCAct,theSupervisorandCustodianareindependentofus.

e. AdministrationmanagerIIShasappointedMMCLimitedastheadministrationmanagerfortheFunds.KeyrolesundertakenbyMMCinclude:

• Registryservices• Unitpricing• Fundaccounting

f. OtherOtherkeypartiesemployedbyIISare:Party RolePricewaterhouseCoopers AuditorDLAPiperNewZealand LegaladviserDeloitteNewZealand Taxadviser

4. ManagerandSupervisor'sIndemnity

BothweandtheSupervisorareentitledtobeindemnifiedoutoftherelevantFund.Theindemnitycoversanypersonalliability(includingPIEtax)incurredbyoronbehalfofaFund,oranyactiontakenoromittedinconnectionwiththeaffairsofaFund(otherthaninrespectofourortheSupervisor'snegligence,wilfuldefaultorwilfulbreachoftrust).Italsocoversthecostsofanylitigationorotherproceedingsinwhichsuchliabilityhasbeendetermined(includinglegalfeesanddisbursements).TheindemnityranksinprioritytotheclaimsofInvestors.ItissubjecttothelimitsonpermittedindemnitiesundertheFMCActwhichonlymaketheindemnityavailableinrelationtotheproperperformanceofthedutiesundertheFMCAct.WeandtheSupervisor,inincurringanydebts,liabilitiesorobligationsorintakingoromittinganyotheractionfororinconnectionwiththeaffairsofaFund,areeachdeemedtobeactingforandonbehalfoftheFundandnotinourownrespectivecapacities.

7

NeithertheSupervisornorwe,(exceptasotherwiseexpresslyprovidedintheTrustDeed)areunderanypersonalliability,normayresortbehadtoourprivateproperty,forthesatisfactionofanyobligationoftheFund.

5. KeytermsMakinganapplicationTheapplicationprocessisdescribedinthePDS.IssuepriceIfweacceptyourapplication,youwillbeissuedUnitsinaFundattheIssuePrice.TheIssuePriceistheNetAssetValueperUnitintheFund,plusanamountcalculatedtoreflectthecostofacquiringinvestmentsfollowingtheissueofUnits("buyspread")andaninitialservicefee(ifany).Wehavenocurrentintentiontochargeaninitialservicefee.ThecurrentbuyspreadsforeachFundarecontainedinthePDS.TheIssuePriceofaUnitisgenerallydeterminedoneachBusinessDay("ValuationTime").SomeoftheFundsinvestintounderlyingfundslocatedoutsideNewZealand(ie,Australia).Insomecircumstances(eg,wherethereisapublicholidayinthejurisdictionoftheunderlyingfund)itmaynotbepossibletodeterminetheIssuePriceofaUnitfortheFundbecausethereisnovaluationdataavailablefortheunderlyingfund.Inthesecases,theIssuePricemaybedeterminedonthenextBusinessDayonwhichvaluationdataisavailablefortheunderlyingfund.Alternatively,withthepermissionoftheSupervisor,theIssuePricemaybedeterminedbyapplyinganindexmovementtothepreviousday’sprice.Ifanapplicationisreceivedandacceptedbeforethecut-offtimeforaFundonaValuationTime,UnitswillbeissuedattheIssuePricedeterminedasattheendofthatday.Ifanapplicationisreceivedandacceptedatorafterthecut-offtimeonaValuationTime,UnitswillbeissuedattheIssuePricedeterminedasattheendofthefollowingValuationTime.Thecut-offtimeforthereceiptofapplicationsandclearedfundsforallFundsiscurrently11.00a.m.NewZealandtime.Ifapaymentisdishonouredorreversed,noUnitswillbeissuedinrespectofthatpaymentoranyUnitsissuedbasedonthatpaymentwillbecancelled.ChargesBuy/sellspreadsTheIssuePriceincludesabuyspreadthatprovidesforthecostofacquiringinvestmentsintheFund.TheRedemptionPriceincludesasellspreadthatprovidesforthecostofrealisinginvestmentsintheFund.Alistofthecurrentbuy/sellspreadsiscontainedinthePDS.Wereviewthebuy/sellspreadsfromtimetotime.

8

ManagementfeeEachFundpaysanannualmanagementfee1basedonthatFund'sGrossAssetValueassetoutbelow:

RussellInvestmentsNZFixedInterestFund 0.61%p.a.RussellInvestmentsGlobalFixedInterestFund 0.66%p.a.RussellInvestmentsNZSharesFund 1.22%p.a.RussellInvestmentsGlobalSharesFund 1.32%p.a.RussellInvestmentsHedgedGlobalSharesFund 1.32%p.a.

ForthepurposesofthePDS,theannualmanagementfeeisstatedasapercentageofeachFund'sNetAssetValue.ThisisdifferentfromtheGrossAssetValueasitincorporatesthevalueoftheFund'sLiabilities.ThenatureoftheFundsmeansthatthefigures,whetherbasedonGrossAssetValueorNetAssetValuearenotmateriallydifferent.Managementfeesarecalculateddailyandpaidmonthlyinarrears.Wemaywaiveordecreaseamanagementfeewithoutnotice.Wemayincreaseamanagementfeebygivingyouatleastthreemonths'notice.Nomanagementfeemaybeincreasedabove2.00%p.a.ofGrossAssetValue.Themanagementfeesaboveincludeanyinvestmentmanagementfeesdeductedwithinanunderlyingfundorpaidtoanunderlyinginvestmentmanagerbutdonotincludeanyotherfeesandchargesdeductedwithinanunderlyingfund.Whereinvestmentmanagementfeesaredeductedfromanunderlyingfundorpaidtoanunderlyinginvestmentmanager,weadjustourfeetoensurethatyouarenotdoublechargedforinvestmentmanagementservices.Youdonotpay,directlyorindirectly,anyadditionalamountfortheinvestmentmanagementservicesprovidedbyentitiesassociatedwiththeInvestmentManagerinrespectoftheunderlyingfunds.Manager'sterminationfeesIfaFundterminates,wemaychargetheFundafee(basedontimespentbyus)andrecovercostsanddisbursementsfromtheFundformattersrelatingtotermination.Thefee,costsanddisbursementsmustbeapprovedbytheSupervisorasreasonable.Youmayaskushowmuchthatfeewasfollowingtermination.IfInvestorsofaFundremoveusasManagerbyExtraordinaryResolution(otherthanforbreachoftrustornegligence),wemaychargethatFundaterminationfee,beingthegreaterof:

• $150,000;and• FourtimestheperannumpercentagemanagementfeefortheFundmultipliedby

theGrossAssetValueoftheFundonthelastValuationTimebeforeweceasetoholdoffice.

WiththeapprovaloftheSupervisor,athirdpartymaypayanamounttousequivalenttotheterminationfee,insteadoftheterminationfeebeingpaidfromtheFund.CaponSupervisor'sfee,AdministrationManager'sfeeandcertainothercostsEachFundpaystheSupervisorforindependentsupervisoryandcustodyservices.EachFundalsopaystheAdministrationManagerforunitpricing,fundaccountingandregistryservices.EachFundalsoincursthecostofobtainingprofessionalservicessuchaslegalfeesandauditcosts.ThetotaloftheSupervisor’sfee,theAdministrationManager'sfeeandthecostsofobtainingprofessionalservices("in-fundcosts")willbecappedat0.10%perannum(plusGST)oftheGrossAssetValueoftheFund.If,inanyyear,thein-fundcostsexceed0.10%thenwewill

1ManagementfeesareinclusiveofGST.GSTiscurrentlychargedat15%on10%ofthemanagementfeeinaccordancewiththenon-bindingIRDagreementwiththeFinancialServicesCouncilofNewZealandIncorporatedonbehalfofthefundsmanagementindustry.Thispercentagemaychangeinthefuture.

9

paytheexcess.If,inanysubsequentyear,thein-fundcostsarelessthan0.10%,thenwemayrecoverfromtheFundtheamountoftheexcesspreviouslypaid,uptothatyear's0.10%limit.Wemay,subjecttotheSupervisor’sapproval,reviewandrevisetheimpositionofacapofthein-fundcosts.OtherchargesEachFundwillincurotherexpenses,includingbrokerageandtaxationchargesandthereareindirectcostswithintheunderlyingfunds.Thesebrokerage,taxation,indirectcostsandotherexpensesdonotformpartofthein-fundcostsandarethereforenotcapped.SomeoftheseexpensesmaybepaidtousortheAdministrationManager.Thereisnolimitontheseexpenses,which(exceptforthecostschargedwithintheunderlyingfunds)willbeshownineachFund'sfinancialstatements.NotethatthecostsofmarketingtheFundswillbebornebyus.Supervisor’sotherfeesTheSupervisormayalsochargespecialfeestoaFundforservicesofanunusualoronerousnatureoutsidetheSupervisor’sregularservices(eg,ontermination).Thisspecialfeeisnotsubjecttothe0.10%capreferredtoabove.InitialservicefeeWhilewehavenocurrentintentiontodoso,wemaychargeaninitialservicefeedeterminedbyusontheissueofanyUnit.Anyinitialservicefee,ifitweretobecharged,wouldbeinadditiontoanybuyspread.VariationtofeesWemay,inourabsolutediscretion,rebatethebuyandsellspreadand/ormanagementfee,byagreement,withanInvestor,oragroupofInvestors.DistributionsAtthedateofthisdocument,weintendtomakesixmonthlydistributionsfromthefollowingFunds:

• RussellInvestmentsNZFixedInterestFund• RussellInvestmentsGlobalFixedInterestFund• RussellInvestmentsNZSharesFund• RussellInvestmentsGlobalSharesFund• RussellInvestmentsHedgedGlobalSharesFund

Weexpecttomakedistributionsinrespectoftheperiods("DistributionPeriods")endingonthelastValuationTimesinMarchandSeptember.However,theDistributionPeriodsmaybevariedinaccordancewiththeDistributionPolicyagreedbyusandtheSupervisorfromtimetotime.IfallInvestorsinafundelectfortheirdistributiontobereinvestednodistributionwillbemadeforthatfund.Theamountavailablefordistribution,ifany,willbedeterminedinaccordancewiththeDistributionPolicy.DistributionswillbeexpressedincentsperUnitandwillthereforebecalculatedbydividingthedistributionamountbythenumberofUnitsonissuefortherelevantFundonthelastdayofaDistributionPeriod.InvestorsrecordedontheRegisteronthelastdayofaDistributionPeriodwillreceivetheirpro-ratashareofthedistributionamount.TheamountpayabletoeachInvestoriscalculatedbymultiplyingtheirnumberofUnitsbythecentsperUnitdistributionamount.Weexpectdistributionpaymentstobemadewithin10BusinessDaysofthelastdayofaDistributionPeriod.

10

YoucanelecttohaveyourdistributionspaidtoanominatedbankaccountorreinvestedintherelevantFund.Intheeventthatyouhavenotmadeadistributionelectionthedefaultoptionisreinvestment.AdditionalUnitswillbeissuedforamountsreinvested.Distributionsreinvesteddonotincurthebuyspread.Notethatimmediatelyfollowingadistribution,theUnitpriceofadistributingfundwillbereducedbythecentsperUnitdistributionamount.WecanvarytheDistributionPolicyforaFundwiththeagreementoftheSupervisor.Youwillreceivethreemonths'noticeofanychangetotheDistributionPolicyforaFund.AmendmentstotheTrustDeedorUnitTrustEstablishmentDeedWecanagreewiththeSupervisortochangetheTrustDeedortheEstablishmentDeedsincertaincircumstances,withoutconsultingyou.Thisabilityis,however,subjecttocertainprotections(foryourbenefit)assetoutintheTrustDeed.AlteringyourinvestmentWemayalterorintroduceminimumapplicationamounts,holdingamounts,transferamountsandredemptionamountsforanyFundatanytime.Wemayallowapplications,holdings,transfersandredemptionsforlessthanthoseminimumsatourdiscretion.WemaydecreaseorwaivethemanagementfeeforanyFundatanytimewithoutnotice.WemayincreasethemanagementfeeforanyFundtothe2.00%p.a.limit,butonlyaftergivingthreemonths'noticetoInvestors.WecanchangetheSIPO.BeforemakingchangestotheSIPO,wewillconsiderifthechangesareinyourbestinterestsandconsultwiththeSupervisor.WewillgivenoticeofchangestoinvestorsintherelevantFundspriortoeffectinganymaterialchanges.Paymentofredemptionrequestsmaybesuspendedordeferred.Detailsofwhenthismayoccurareundertheheading"Redemptionofunits"inthesectiononpage10.WemayresolvetowindupaFund.Inthatcase,allassetsoftheFundwillberealisedandtheFundwoundup(asexplainedundertheheading"Insolvencyorwindingup"inthesectiononpage18.IfyourholdinginaFundfallsbelowtheminimumholdingamountfixedbyusfromtimetotimeorifwedeterminethatanadjustmentforPIEtaxwouldreduceyourholdingtobelowthatminimumholdingamount,wemayredeemyourentireholdingandpaythenetproceedsintoyournominatedbankaccount.Wewillgiveyouatleastonemonth'snoticeofourintentiontodothis.ThecurrentminimumholdingamountinaFundfixedbyusis500units.WemaytakeallstepsnecessarytoensureeachFundremainseligibletobeaPIE.ThisincludesourabilitytocompulsorilyredeemsomeorallofyourUnitsandpaythenetproceedstoyournominatedbankaccount.RedemptionofunitsMinimumredemptionamountsIfaRedemptionRequestwouldcauseyourholdinginaFundtofallbelowtheminimumholdingamount(asdeterminedbyusfromtimetotime)wemaytreattheRedemptionRequestasarequesttoredeemallyourUnitsinthatFund.IfyourholdingfallsbelowtheminimumholdingamountortoalevelwhereanadjustmentforPIEtaxwouldleaveyourholdingbelowtheminimumholdingamount,wemayredeemallofyourUnitsandpaytheproceedstoyournominatedbankaccount.

11

RedemptionpriceTheRedemptionPriceofaUnitisdeterminedoneachValuationTimefortheFund.IfanInvestors’RedemptionRequestisreceivedpriortotheapplicablecut-offtimeonaValuationTime,theRedemptionPriceapplicabletoyourRedemptionRequestwillbetheRedemptionPricedeterminedasattheendofthatday.IfyourRedemptionRequestisreceivedatoraftertheapplicablecut-offtimeonaValuationTime,theapplicableRedemptionPricewillbetheRedemptionPricedeterminedasattheendofthefollowingValuationTime.DeferralofredemptionsIfaRedemptionRequestoraseriesofRedemptionRequestsinrespectofaFundarereceivedwithinaperiodof60BusinessDaysthatintotalcomprisemorethan10%ofthenumberofUnitsonissueinthatFund,andwedetermineitisintheinterestsoftheFund'sInvestorstodeferimmediateredemptionofthetotalUnitsrequested,wewilldetermineabasisforredemptionthatweconsidertobeinthegeneralinterestsofallthatFund'sInvestors.WemustnotifytheSupervisorofourintentiontodeferredemptionsassoonasreasonablypracticable.ARedemptionRequestmaynotbedeferredforaperiodexceedingsixmonthsafteritsreceipt(orsuchotherdateasisapprovedbySpecialResolutionofInvestors).SuspensionofredemptionsWemaysuspendredemptionswhereweingoodfaithformtheopinionthatitisnotpracticable,orwouldbemateriallyprejudicialtotheinterestsofInvestorsofanyoftheFundsfortheSupervisortorealiseassetsorborrowinordertopermitredemptionofUnits.Ifredemptionsaresuspended,wemustgivenoticetoallInvestorswhohavemadeaRedemptionRequest.Ifthesuspensionisforaperiodofmorethantwoweeks,wemustgivenoticetoallInvestorsintherelevantFund.Thesuspensionwillcontinueuntil:

• wegivenoticethatthesuspensionisconcluded;or• theexpiryofanyperiodstatedintheEstablishmentDeed;or• sixmonthsafterthedateofthenotice;or• suchlongerperiodasmaybeapprovedbyanSpecialResolutionofInvestors.

TaxonredemptionsWhereUnitsareredeemed,thetaxliabilityonincomeallocatedtoyouuptotheredemptiondatewillneedtobesatisfiedeitherbyuscancellingUnitsorbydeductionfromanydistributions.GenerallythiswilloccurbycancellationofUnitsonredemption.RighttosellunitsYoumaysellandtransferalloranyofyourUnits,(eithertoanexistingInvestororanotherperson)bycompletingaTransferRequestForm,tobesignedbythetransferorandtransferee.ThetransferbecomeseffectivewhenitisenteredintheRegister.WemaydeclinetoregisteranytransferifitdoesnotcomplywiththeTrustDeedortheEstablishmentDeeds,includingif:

• Thetransferisinrespectoflessthantheminimumtransferamountasdeterminedbyusfromtimetotime.

• RegistrationofthetransferwouldresultinthetransferororthetransfereeholdinglessthantheminimumholdingamountfortheFundasdeterminedbyusfromtimetotime.

• ThetransferwouldresultintheFundlosingitsPIEstatus.NotransferofanyUnitscanberegisteredunlessanysumsowedinrespectofthoseUnits(includinganyapplicablePIEtax,orotherdutiesoranycommissions,feesandchargesinrespectofthetransferoftheUnits)havebeenpaid.

12

TerminationoftheFundsEachFundwillterminateonthefirstofthefollowing:

• thedateoftermination(ifany)notifiedinwritingbyusandtheSupervisortoeachInvestoroftheFundwhichwillbeatleastthreemonthsafterthedateofthenotice;

• 80yearslesstwodaysfromthedateoftheEstablishmentDeedfortherelevantFund;or

• thedateonwhichanSpecialResolutionispassedbyInvestorsoftheFundresolvingtoterminatetheFund.

6. Fund-specificinformation

RussellInvestmentsGlobalSharesFund,RussellInvestmentsHedgedGlobalSharesFundandRussellInvestmentsGlobalFixedInterestFundTheRussellInvestmentsGlobalSharesFund,RussellInvestmentsHedgedGlobalSharesFundandRussellInvestmentsGlobalFixedInterestFundcurrentlyinvestinAustralianUnitTrusts.Keyconsequencesofthisarrangementarethatthefunds:

a. IndirectlyincurcostsdeductedwithintheAustralianUnitTrust,andb. CannotrecognisewithholdingtaxonincomereceivedbytheAustralianUnit

Trusts(seeTaxationsectiononpage13).TheunderlyingAustralianUnitTrustusedbytheRussellInvestmentsGlobalFixedInterestFundhasamaximumexposuretonon-investmentgradesecuritiesof30%.TheRussellInvestmentsHedgedGlobalSharesFundandRussellInvestmentsGlobalFixedInterestFundtargetbeingfullyhedgedtoNewZealanddollarswhichaimstominimisetheeffectofcurrencyfluctuations.Someforeigncurrencyexposuresarelikelytoremainunhedged,duetoactivecurrencypositionstakenbyunderlyingmanagers,whichmayaffecttheinvestmentvaluesoftheseFunds.RussellInvestmentsNZSharesFundTheRussellInvestmentsNZSharesFundinvestspredominantlyinsharesfromNewZealand.Thereforeinvestorsareexposedtotherisksassociatedwithonlyhavingpredominantexposuretothiseconomy,marketandcurrency.TheRussellInvestmentsNZSharesFundhaselectedtobeaForeignInvestmentPIE.TheconsequencesofthiselectionareexplainedintheTaxationsectionstartingonpage13.RussellInvestmentsNZFixedInterestFundTheRussellInvestmentsNZFixedInterestFundinvestsprimarilyinfixedinterestsecuritiesdenominatedinNewZealanddollarsbutcanalsohaveexposuretotheAustralianfixedincomemarket.Thereforeinvestorsareexposedtotherisksassociatedwithhavingexposuretoalimitednumberofeconomies,marketsandcurrencies.TheRussellInvestmentsNZFixedInterestFundhaselectedtobeaForeignInvestmentPIE.TheconsequencesofthiselectionareexplainedintheTaxationsectionstartingonpage13.

7. InvestmentinformationRussellInvestments,intheircapacityasInvestmentManager,isresponsibleformakingrecommendationsanddecisionsaboutwhattheSchemeinvestsin,inaccordancewiththeSIPO.Underlyingfunds,sub-investmentmanagersandstrategiesmaychangewithoutnotice.Detailsofthecurrentunderlyingspecialistmanagerscanbeobtainedfromus.

13

AtthedateofthisDocumenttheunderlyingspecialistmanagerswere:

Fund UnderlyingspecialistmanagerRussellInvestmentsGlobalSharesFund

SandersCapital,LLCMFSInvestmentManagementJanusCapitalGroupNumericInvestors,LLCWellingtonManagementTiburonPartnersRWCAssetManagementJOHambroCapitalManagementRussellInvestments

RussellInvestmentsHedgedGlobalSharesFund

SandersCapital,LLCMFSInvestmentManagementJanusCapitalGroupNumericInvestors,LLCWellingtonManagementTiburonPartnersRWCAssetManagementJOHambroCapitalManagementRussellInvestments

RussellInvestmentsNZSharesFund HarbourAssetManagementLimitedDevonFundsGroupLimited

RussellInvestmentsNZFixedInterestFund

HarbourAssetManagementLimited

RussellInvestmentsGlobalFixedInterestFund

ColchesterGlobalInvestorsLimited(UK)SchroderInvestmentManagementNorthAmericaInc.(US)Loomis,Sayles&Company,L.P.(US)PacificInvestmentManagementCompany,LLC(US)BlueBayAssetManagementLLP(UK)InsightInvestmentManagement(Global)Limited(UK)RussellInvestments

8. TaxationThissectionbrieflysummarisesthetaxationregimeasitappliestotheFunds.Itisintendedasageneralguideonly.AllInvestorshavedifferenttaxationpositionsandshouldseektheirowntaxadvicepriortoinvesting.PortfolioInvestmentEntitiesTheFundsarePIEs.CapitalgainsderivedbyPIEsinrelationtoNewZealandandmostlistedAustraliancompaniesarenotsubjecttotax.InvestmentsincertainoffshoreequitiesaretaxedundertheFairDividendRatemethod,withadeemedannualreturnof5%ofthemarketvalue,proratedoverthedaysthattheparticularequityisheldduringtheyear.UnderthePIEregime,aFundwillallocateitstaxableincometoInvestorsand,whereapplicable,paytaxonallocatedincomeonbehalfofInvestorsforanInvestorwithaprescribedinvestorrate("PIR")ofgreaterthanzero.AFundwillundertakeanynecessaryadjustmentstoanInvestor’sinterestsintheFundtoreflectthattheFundpaystaxatvaryingratesonbehalfofInvestors.IndividualsThePIRsforindividualInvestorsintheFundswhoareNewZealandtaxresidentare10.5%,17.5%and28%.

14

IndividualInvestorswillbeeligiblefora10.5%PIRiftheirtaxableincomeineitherofthetwoimmediatelypriortaxyears2didnotexceedboth:

• $14,000(excludingPIEincome);and• $48,000(includingPIEincome).

IndividualInvestorswhodonotqualifyforthe10.5%rateareeligibleforthe17.5%PIRiftheirtaxableincomeineitherofthetwoimmediatelypriortaxyears§didnotexceedboth:

• $48,000(excludingPIEincome);and• $70,000(includingPIEincome).

IfanindividualInvestordoesnotqualifyforeitherthe10.5%PIRorthe17.5%PIR(ordoesnotprovideIISwithavalidIRDnumberandnotifytheirPIR),theirPIRwillbe28%.ThemaximumtaxrateforanindividualInvestorinaFundis28%.IfanindividualInvestorhasprovidedtheInvestor’scorrectPIR,theInvestorwillnotberequiredtoincludetheallocatedtaxableincomeintheInvestor’staxreturn.IfanInvestorhasprovidedaPIRthatislowerthantheInvestor’scorrectPIR,theInvestormayhavetoincludetheallocatedtaxableincomeintheInvestor’staxreturn.IfanInvestorhasprovidedaPIRthatishigherthantheInvestor’scorrectPIR,theInvestorwillnotbeabletoreceivearefundoftheoverpaymentoftax.Non-individualsNon-individualInvestorswhoarecompaniesorcharitieswhoprovideIISwithavalidIRDnumberandwhonotifytheirManageroftheirPIRwillhaveaPIRof0%.IftheydonotprovideavalidIRDnumberornotifytheirPIR,thedefaultPIRof28%willapply.Non-individualInvestorsmustaccountfortaxontheirallocatedincomefromaFundintheirowntaxreturn.Non-individualInvestorswhoaretrustswillhaveaPIRof0%unlesstheirtrusteeselecttoapplya10.5%,17.5%or28%PIRortheydonotprovideavalidIRDnumberornotifyIISoftheirPIR.Ifa0%PIRappliestoatrust,thenthattrustmustaccountforitsallocatedincomefromaFundwithinitsowntaxreturn(attheappropriatetaxrate).Ifatrustelectsa10.5%or17.5%PIR,thetrustincludestheallocatedincomefromaFundwithinitsowntaxreturn(attheappropriatetaxrate)andclaimsacreditforthetaxalreadypaidbytheFund.Ifatrustelectsa28%PIRtobeappliedagainstitsallocatedincomefromtherelevantFund,IISwillpaytaxatthe28%rateandthatwillbeafinaltax.A10.5%PIRisonlyavailabletoTestamentaryTrusts.ForeignresidentsIfanInvestorisnotaNewZealandresident,theInvestor’sallocatedincomefromaFundwillbetaxedat28%.IISwillaccounttotheIRDdirectlyfortaxonanon-residentInvestor’sallocatedincomefromtherelevantFund.However,IIShaselectedfor:

• theRussellInvestmentsNZFixedInterestFundand• theRussellInvestmentsNZSharesFund

tobeForeignInvestmentPIEs.ForthesefundslowerPIRswillapplytoeligibleforeignresidentswhohavesufficientlycompletedandprovidedtousanotifiedforeigninvestorform(availableonrequest).Thelowerratesareasfollows:

2Taxyearsgenerallycommenceon1Aprilinanyyearandendon31Marchinthefollowingyear.

15

Allnon-NewZealandsourcedincome,fullyimputeddividends,incomefromNewZealandbasedfinancialarrangementsexcludinginterestcoveredbelow

0%

NewZealandinterestincome 1.44%NewZealanddividendincome,totheextentitisun-imputed,istaxedbasedonwhethertheinvestorisresidentinacountrywithwhichNewZealandholdadoubletaxagreement("DTA")thatreducesthedividendwithholdingtaxratebelowthestandard30%.

15%(non-standard);30%(standard)

OtherNewZealandsourcedincome(ifany) 28%Withholdingtax–GlobalFundsTheRussellInvestmentsGlobalFixedInterestFund,theRussellInvestmentsGlobalSharesFundandtheRussellInvestmentsHedgedGlobalSharesFundcurrentlyinvestthroughAustralianUnitTrusts.TheAustralianUnitTrustsmayhaveforeignwithholdingtaxdeductedfromincomethattheyreceive.However,withholdingtaxonincomereceivedbytheAustralianUnitTrustsisnotrecognisedunderNewZealandtaxlawandthereforecannotbeutilisedagainstanyPIEtaxliabilityrelatedtoinvestmentsintheFunds.GeneralInvestorsmustadviseIISoftheirPIRandIRDnumberwhenapplyingtoinvestinaFundandiftheirPIRchangesatanytime.IfanInvestordoesnotprovidetheirPIRtoIIStheywillautomaticallybetaxedatthemaximumdefaultrateof28%.IfanInvestorprovidesanincorrectPIRtheymaybeliableforanyadditionalincometax.TheCommissionerofInlandRevenuecanrequireIIStodisregardaPIRnotifiedbyanInvestoriftheCommissionerconsiderstheratetobeincorrect.TheratespecifiedbytheCommissionerwouldthenapplytothatInvestor’sattributedincome.Taxableincomeisattributedannuallyto31March,oratanytimeanInvestorwithdrawsallorpartoftheirinvestmentfromtheFund.IfthereisataxlossorthereareexcesstaxcreditsallocatedtoanInvestorforaperiod,thesewillgenerallybeavailabletoInvestorswithaPIRotherthan0%intheformofarebate.TherelevantFundwilleitherre-investthisrebatebypurchasingUnitsintheFundonanInvestor’sbehalfinrespectofannualattributionsasat31MarchorincludeitinthenetproceedspayabletothatInvestororappliedontheirbehalfasaresultofafullwithdrawal.Fornon-individualInvestorswitha0%PIR,thetaxlossorexcesscreditsmaybeavailableforoffsetinthatInvestor’staxreturnagainstotherincome,withanyexcessavailabletocarryforward.Investorswillnotpaytaxondistributions(ifany)paidtoInvestorsfromaFund.TheremaybechangestothetaxationlegislationandtaxratesinthefuturewhichmayimpacteachInvestordifferently.Investorsshouldalwaysseekindependentprofessionaltaxationadvicefortheirindividualcircumstances.NeithertheSupervisor,ManagernoranyotherpersonguaranteesorprovidesundertakingsinrelationtothereturnofcapitalinvestedinanyoftheFundsbyanInvestor,thepaymentofanyreturnoncapital,orprovisionofanydistributionorpaymentofanymoneyinrelationtoanyoftheFunds,ortheperformanceoftheFunds.

16

9. BasisofestimatesforfundchargesinPDSThefundchargesdisclosedinthePDSarecomprisedof:

• ManagementfeeschargedbyusortheinvestmentmanagersresponsibleformanagingtheFunds’assets.ThemanagementfeesdisclosedinthePDSaretheactualfeesasatthedateofthePDS.Theyarenotestimates.

• In-fundcostsandadministrationchargesincurredbytheFundsinNewZealand.TheseincludetheSupervisorandcustodycosts,aswellasthecostsassociatedwithfundadministration,accounting,unitpricingtheregistry,aswellasthecostofauditandotherprofessionalchargesassociatedwithoperatingtheFunds.Thesein-fundcostsarecappedat0.10%perannumplusanyapplicableGST.Whilethesechargesmaybelowerthanthis,forthepurposeofestimatingthefundchargesinthePDSwehaveassumedthattheseare0.10%plusanyapplicableGST.

• ThecostswithinanyoffshorefundsthattheRussellInvestmentsGlobalFixedInterestFund,RussellInvestmentsGlobalSharesFund,andRussellInvestmentsHedgedGlobalSharesFundinvestin.TheseoffshorefundcostsareprovidedtousbyRussellInvestments.ForthepurposeofestimatingtheseoffshorefundcostsinthePDS,wehaveassumedthefuturelevelofoffshorefundcostswillbesimilartothosechargedhistorically.

• TheFundsinvestindiversifiedportfoliosofassets.Theseportfoliosmayincludefundsthatarelistedonastockexchangelikeexchangetradedfunds.Weareunabletoreasonablyestimateamountschargedbysomeunderlyingfundsthatarelistedonastockexchangesohaveomittedthemfromtheestimatedadministrationchargesfigure.Wedonotexpectthesechargestobematerial.

10. ConflictsofInterestMintAssetManagementLimitedRebeccaEeleisashareholderofIISaswellasMintAssetManagementLimited("Mint").MintisaspecialistinvestmentmanagerbasedinNewZealand,andisamanagerthatmaybeappointedasasub-managerofoneoftheRussellInvestmentFunds.AsashareholderofMint,RebeccamayinfluencetheappointmentofMinttoactasasub-managerofoneoftheRussellInvestmentFundsaheadofexternal,thirdpartyinvestmentmanagers.RussellInvestmentGroupLimitedRussellInvestmentGroupLimited("Russell")isashareholderofIISaswellasbeingtheInvestmentManagerandAdministratorinrespectoftheFunds.RussellalsositsonthejointgovernancecommitteeestablishedbyIISandRusselltooverseetheFunds'investmentsandpromotion.AlisterVanderMaasisadirectorofbothRussellInvestmentGroupLimitedandIIS.

Russell,andAlisterasdirectorofbothRussellandIIS,mayhaveanincentivetoinfluenceinvestmentdecisionstoinvestininvestmentfundsmanagedbyRussellaheadofinvestmentfundsmanagedbythirdpartyinvestmentmanagers.Thisgivesrisetoaninherentconflictofinterest.

FundsaffectedAnyoftheFundscouldbeaffectedbytheseconflictsofinterest.TheRussellInvestmentsGlobalSharesFund,theRussellInvestmentsGlobalHedgedSharesFundandtheRussellInvestmentsGlobalFixedInterestFundallcurrentlyinvestdirectlyintoRussellFunds.

Managementofconflictsofinterest

17

TheFMCActimposesstatutorycontrolsonconflictsofinterest:

• ArelatedpartytransactioninrespectofaFundmayonlybedoneifthedetailsarenotifiedtotheSupervisorandwe:1)certifythetransaction(orseriesoftransactions)is"permitted"onthebasisthatitcompromisesinvestmentintoaregulatedinvestmentinNZorAustralia,orthetransactionisonarm'slength,or2)weobtaintheSupervisor'sconsentonthebasisthatitisinthebestinterestsofinvestors,orcontingentonSpecialResolutionapprovalbyinvestors.

• AsmanageroftheFunds,wearesubjecttovariousstatutorydutiesintheperformanceofourdutiesasmanager,includingtherequirementtoacthonestlyandinthebestinterestsofinvestors.

• Wherewecontractoutourfunctionstootherparties,suchastheinvestmentmanagementoftheFundstoRussellInvestmentGroup,wemustensurethepersonstowhomwecontractthosefunctionsperformthemtothesamestandardandsubjecttothesamedutiesandrestrictionsasifwewereperformingthemourselves.Theseincludethestatutorydutiesreferredtoabove.Wemustalsomonitortheperformanceofthatfunction.

• RussellInvestmentGroupLimitedasinvestmentmanageroftheFundsmustcomplywithaprofessionalstandardofcarei.e.inexercisinganypowers,orperforminganydutiesasinvestmentmanager,theymustexercisethecare,diligence,andskillthataprudentpersonengagedintheprofessionofinvestmentmanagementwouldexerciseinthesamecircumstances.

Wehavebuiltthesestatutorycontrolsintoourinternalcomplianceprocessesandprocedures.WehaveaConflictsofInterestandRelatedPartyTransactionsPolicyandProcedure("Policy")whichextendsthestatutorydutiesimposedonustoourstaffmembers.ThePolicydefineswhataconflictofinterestisandprovidesforreportinganddisclosureofconflictsofinteresttotheBoard,ManagerandDirectors.Italsosetsoutprotocolsforpersonalsecuritiestransactions,includingpre-clearanceandreporting.

11. RisksDifferentinvestmentshavedifferenttypesofrisks.WerecommendthatyouseekprofessionaladvicebeforeinvestinginanyoftheFundstounderstandwhatrisksareassociatedwiththese,especiallyinrelationtoyourcircumstances.RisksrelevanttotheFundsinclude,butarenotlimitedtoinvestmentrisk,marketrisk,managerrisk,currencyrisk,interestraterisk,concerntrationrisk,liquidityrisk,creditrisk,regulatoryrisk,taxrelatedrisk,operationalrisk,productrisk,andriskofrestrictionsofwithdrawals,transfersorswitches.ThefollowingrisksaresupplementaltotherisksdisclosedinthePDS.NZFixedInterestTheRussellInvestmentsNZFixedInterestFundinvestsprimarilyinfixedinterestsecuritiesdenominatedinNewZealanddollarsbutcanalsohaveexposuretotheAustralianfixedincomemarket.Thereforeinvestorsareexposedtotherisksassociatedwithhavingexposuretoalimitednumberofeconomies,marketsandcurrencies.IndividualInvestorscanlooktomanagethisriskbyincludingotherinvestmentsintheirportfolio.NZSharesTheRussellInvestmentsNZSharesFundinvestspredominantlyinsharesfromNewZealand.Thereforeinvestorsareexposedtotherisksassociatedwithonlyhavingpredominantexposuretothiseconomy,marketandcurrency.IndividualInvestorscanlooktomanagethisriskbyincludingotherinvestmentsintheirportfolio.CountryriskTheRussellInvestmentsGlobalFixedInterest,GlobalSharesandHedgedGlobalSharesFundeachinvestinternationally.WhilethisprovidesinvestorswithadditionaldiversificationbenefitsbeyondjustholdingNewZealandinvestmentsandassets,investinginternationallybringswithitarangeofspecificrisks.Eachcountry’smarketisregulatedbydifferentauthorities,resultingindifferentlevelsofconsumerprotection.Thevolatilityofeconomic

18

andpoliticalconditionswillvaryfromcountrytocountry,creatinguncertaintyandanincreaseinunforeseenfactors.InflationriskThisistheriskthataninvestmentwillloserealvaluebecauseoftherateofinflation.Theriskisgreaterinlongterminvestmentsduetothedifficultyinpredictinginflationratesoverlongperiods.AlloftheRussellInvestmentFundsareexposedtothisrisk.DiversificationriskTheRussellInvestmentFundsinvesteitherdirectlyorindirectlyinwelldiversifiedportfoliosofsecurities.AsthefundsareactivelymanagedthecompositionoftheunderlyingportfolioswillvaryfromthecompositionoftherelevantFundbenchmark.ThiswillresultinFundreturnsbeingbothaboveandbelowrelevantbenchmarkreturns.AdministrationriskTherewillalsoalwaysbetheriskofatechnologicalorotherfailureoreventimpactingontheFundsorthefinancialmarketsingeneralthatmayaffectreturns.Also,althoughtheManagerhasmechanismsavailabletomanagecompliancewiththePIEeligibilityrequirements,thereisariskthataFundcouldloseitsPIEstatusifthereisabreachofthoserequirementsandtheManagerdoesnotbecomeawareofthebreachintimetocorrectit.HowriskscanaffectaninvestmentTheactualorperceivedexistenceofriskmaymanifestitselfinuncertainty,whichinturnincreasesvolatilityofinvestmentreturns.Whenthecollectivesentimentofthemarketispositive,pricesrise;whenitisnegative,pricesfall.Ifspecificriskseventuate(i.e.thecollapseofacompanyoraborrowerdefaultingonadebenture)atotallossofcapitalmayoccur.Eachinvestmentwillbeaffectedbyadifferentcombinationofrisks.Becauseoftheserisks,itisforeseeablethatanInvestormayreceivebacklessthanthecapitalinvestedbytheInvestorintotheFunds.However,theInvestorwillnotberequiredtopaymoremoneythantheamounttheInvestorinvestedintheFunds(withtheexceptionofanyPIEtaxliabilitythatmaybeincurred).Noperson,includingtheSupervisorortheManagerortheirrespectivedirectorsandshareholdersguaranteestheperformanceoftheFunds,anyparticularrateofreturn,orthereturnofanInvestor’scapital.AnInvestor’sinvestmentisnotsecuredagainstanyassets.InsolvencyorwindingupYouwillnotbeliabletopaymoneytoanypersonasaresultoftheinsolvencyorwindingupofaFund(exceptasdescribedbelow).YouwillbeliabletomeetanytaxliabilityattributabletoyouwhichexceedsthevalueofyourinvestmentinaFund(inwhichcaseyouindemnifytheSupervisorforthedifferencebetweenthevalueoftheUnitsandthetaxliability).AcustodianthatholdslegaltitletoUnitsonbehalfofunderlyinginvestorsandelectstobeaproxyforPIEinvestorswill,underthetermsoftheapplicationformattachedtothePDS,indemnifyusandtheSupervisorforanylosses,liabilities,costsorexpensesarisingfromanybreach(inrelationtounderlyinginvestorsthatsuchcustodianisresponsiblefor)oftheinvestorinterestsizerequirementsundersectionHM15ortheinvestormembershiprequirementsundersectionHM14oftheIncomeTaxAct2007,includingthelosses,liabilities,costsorexpensesarisingfromtheFundlosingPIEstatus.OninsolvencyorwindingupofaFund,theassetsoftheFundarefirstappliedtomeettheclaimsofanycreditorsoftheFund(whetherpreferred,securedorunsecured),whichincludestheSupervisor'sandManager’sclaimsforfeesandexpenses.Followingthis,theremainderoftheassetsoftheFundwillbedistributedtoInvestorsinproportiontothenumberofUnitsheld.

19

AtthedateofthisdocumenttherearenootherclaimsontheassetsoftheSchemethatrankaheadoforequallywiththeclaimsofInvestors.Incertaincircumstances,youmayreceiveassetsotherthancash(e.g.securitiesinanotherinvestmentheldbyaFund)aspartofawindup.

12. MaterialContractsThefollowingmaterialcontractsareinplaceinrelationtotheFunds:

• On17June2011,ImplementedInvestmentSolutionsLimitedandMMCLimitedenteredintoanAdministrationAgreementunderwhichImplementedInvestmentSolutionsLimiteddelegatedcertainadministrativefunctionsinrelationtotheFundstoMMCLimited,includingregistry,fundaccountingandunitpricing.

• On11August2011,ImplementedInvestmentSolutionsLimitedandRussellInvestmentsenteredintoanInvestmentAdvisoryandInvestmentManagementAgreementunderwhichRussellInvestmentsagreedtoprovideinvestmentmanagementandadvisoryservicesinrespectoftheFunds.

• On5August2011,ImplementedInvestmentSolutionsLimitedandRussellInvestmentsenteredintoaUnitTrustPromotionandInvestmentManagementAgreement.formalisingtheframeworkwithinwhichRussellInvestmentswouldprovidecertainservicestoImplementedInvestmentSolutionsLimited.UnderthisagreementImplementedInvestmentSolutionsisresponsibleforissuing,administering,anddistributingtheRussellInvestmentFunds,withRussellInvestmentsbeingappointedastheInvestmentManagerandinvestmentadviser,aswellasworkingtopromoteanddistributetheFunds.Theagreementcoversinvestment,administration,distribution,clients,branding,advertising,offerdocuments,PortfolioInvestmentEntitycompliance,disputeresolution,andtheterminationprovisions.TheAgreementisavailableonrequest.

• On9February2016,ImplementedInvestmentSolutionsLimitedandDevonFundsGroupLimitedenteredintoanInvestmentManagementAgreementrelatingtotheinvestmentoftheRussellInvestmentsNZSharesFund.

• On19May2016,ImplementedInvestmentSolutionsLimitedandHarbourAssetManagementLimitedenteredintoInvestmentManagementAgreementsrelatingtotheRussellInvestmentsNZSharesFundandtheRussellInvestmentsNZFixedInterestFund.Theseagreementsreplacedpre-existingagreementsbetweentheparties,inanticipationofthenewcomplianceobligationsapplyingundertheFinancialMarketsConductAct2013.

• On29July2016,ImplementedInvestmentSolutionsLimitedandPublicTrustenteredintotheTrustDeedfortheImplementedInvestmentSolutionsFunds.TheTrustDeedappointedtheSupervisorassupervisoroftheFunds,andtheManagerasmanageroftheFunds.

13. InvestingthroughadministrationandcustodialservicesTheFundsareofferedthroughcertainadministrationandcustodialservices.Theseinclude"wrapplatforms".WhenyouinvestthroughanadministrationandcustodialserviceyoudonotholdUnitsintheFundsdirectly.Instead,yourUnitsareheldinthenameofacustodialentityforthewrapplatformonyourbehalf.ThismeansmanyofthelegalrightsattachingtothoseUnitsareheldbythatcustodialentityratherthanbyyou,andsoyourabilitytoexercisethoserightsissubjecttothetermsandconditionsagreedbetweenyouandtheprovideroftheservice.Youareencouragedtofamiliariseyourselfwiththosetermsandconditionsassetoutinserviceprovider'smarketingandlegaldocumentation.

14. MoreinformationaboutmarketindicesWheretofindmoreinformationTheFunds'returnsaremeasuredagainstvariousmarketindicesassetoutintheSIPO.Moreinformationaboutthesemarketindicescanbefoundatthefollowingwebpages:

20

• S&P/NZXIndices:http://us.spindices.com/regional-exposure/asia-pacific/new-zealand

• BarclaysCapitalIndices:https://index.barcap.com/• RussellGlobalIndices:http://www.ftse.com/products/indices/Russell-Global

DisclaimersOuruseofsomemarketindicesissubjecttotermsandconditionsoflicenceagreementsenteredintowiththeindexprovider.Theserequireustoprovidethefollowingdisclaimerinrelationtoouruseofthosemarketindices:

TheS&P/NZX50Index,S&P/NZXNZGovernmentStockIndex,andS&P/NZXAGradeCorporateBondIndex(“Indexes”)areproductsofS&PDowJonesIndicesLLCand/oritsaffiliatesandhavebeenlicensedforusebyImplementedInvestmentSolutionsLimited.Copyright©2016S&PDowJonesIndicesLLC,asubsidiaryofMcGrawHillFinancialInc.,and/oritsaffliates.Allrightsreserved.RedistributionorreproductioninwholeorinpartareprohibitedwithoutwrittenpermissionofS&PDowJonesIndicesLLC.FormoreinformationonanyofS&PDowJonesIndicespleasevisitwww.spdji.com.S&P®isaregisteredtrademarkofStandard&Poor’sFinancialServicesLLCandDowJones®isaregisteredtrademarkofDowJonesTrademarkHoldingsLLC.NeitherS&PDowJonesIndicesLLC,DowJonesTrademarkHoldingsLLC,theiraffiliatesnortheirthirdpartylicensorsmakeanyrepresentationorwarranty,expressorimplied,astotheabilityofanyindextoaccuratelyrepresenttheassetclassormarketsectorthatitpurportstorepresentandneitherS&PDowJonesIndicesLLC,DowJonesTrademarkHoldingsLLC,theiraffiliatesnortheirthirdpartylicensorsshallhaveanyliabilityforanyerrors,omissions,orinterruptionsofanyindexorthedataincludedtherein.

15. Noguarantee

NeithertheSupervisor,ManagernoranyotherpersonguaranteesorprovidesundertakingsinrelationtothereturnofcapitalinvestedinanyoftheFundsbyanInvestor,thepaymentofanyreturnoncapital,orprovisionofanydistributionorpaymentofanymoneyinrelationtoanyoftheFunds,ortheperformanceoftheFunds.

21

Glossary“Custodian”meansPublicTrustRIFNomineesLimited.“FMA”meanstheFinancialMarketsAuthority.“FMCAct”meanstheFinancialMarkertsConductAct2013.“FMCRegulations”meanstheFinancialMarketsConductRegulations2014.“Funds”meanstheRussellInvestmentFunds.“InvestmentManager”meansRussellInvestmentGroupLimited.“PDS”meanstheProductDisclosureStatementfortheRussellInvestmentFunds.“PIE”meansPortfolioInvestmentEntity.“PIR”meansprescribedinvestorrate.“Russell”meansRussellInvestmentGroupLimited.“Scheme”meanstheRussellInvestmentFunds,registeredschemenumberSCH10586.“SIPO”meanstheStatementofInvestmentPoliciesandObjectivesfortheRussellInvestmentFunds.“Supervisor”meansPublicTrust.“TrustDeed”meansthetrustdeedthatgovernstheFunds(asamendedandconsolidatedfromtimetotime).“We”,“us”,“our”or“IIS”referstoImplementedInvestmentSolutionsLimitedasthemanageroftheRussellInvestmentFunds.WordsorphrasesnotdefinedinthisGlossaryhavethesamemeaningasintheTrustDeed.