Strategic Bond Fund
RUSSELL INVESTMENT CO · 6 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Strategic Bond Fund is an actively managed U.S. bond fund.
- Asset class
- Bonds
- Region
- United States
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- Investment grade
- Rate sensitivity
- Intermediate duration
Fund profile
As filed in the prospectus · 2026 Q1
The Fund seeks to provide total return.
The fund invests at least 80% of assets in bonds across multiple sectors—government, corporate, mortgage-backed, asset-backed, and high-yield securities—selected by Russell Investment Management and unaffiliated sub-advisers using quantitative processes and index-based strategies. Portfolio duration typically stays within one year of the Bloomberg U.S. Aggregate Bond Index but may diverge by up to two years. The fund may use derivatives, leverage, and short positions, which can cause total exposure to exceed net asset value and returns to depend on securities the fund does not own.
| Share class | Gross | Net |
|---|---|---|
| RFCYX | 0.48% | 0.42% |
| RFDAX | 0.93% | 0.83% |
| RFCCX | 1.68% | 1.58% |
| RFCTX | 0.68% | 0.56% |
| RSBRX | 0.53% | 0.45% |
| RSYTX | 0.68% | 0.46% |
Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.
Portfolio turnover 56.00% · as of 2026 Q1
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 49.66% |
| Securitized | 33.87% |
| Cash & short-term | 14.95% |
| Derivatives | -0.90% |
The outer band is exposure held short — written against the portfolio rather than part of it, which is why it sits outside the ring and why the two are never netted into one figure.
Derivatives are shown at market value, not notional exposure.
Sector allocation
The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2
| Securitized | 34.3% |
| Cash | 15.1% |
| Government | 13.6% |
| International | 9.0% |
| 12 smaller | 28.0% |
Government, Securitized and Cash are non-corporate buckets; International is foreign holdings we don’t sector-classify, and Other is the residual (held funds, unresolved names).
Latest quarter
What changed since the fund's previous filing
Largest new: United States Treasury ×3, FRENCH DISCOUNT T-BILL, Government National Mortgage Association, BX Trust, RRE Loan Management, Arbor Realty Commercial Real Estate Notes
Largest exited: United States Treasury, UMBS, TBA ×2, JAPAN TREASURY DISC BILL ×2, KUWAIT INTL BOND, Government National Mortgage Association, New Zealand Government Bonds
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
| Share class | 1-year | 3-year | 5-year | Vol | Worst fall |
|---|---|---|---|---|---|
| +4.23% | +9.57% | -1.40% | 3.80% | -6.88% | |
| +3.79% | -51.58% | -82.74% | 3.82% | -54.45% | |
| +3.09% | +5.89% | -6.99% | 3.70% | -7.38% | |
| +4.14% | +9.23% | -2.14% | 3.76% | -6.89% | |
| +4.35% | +9.60% | -1.58% | 3.74% | -6.87% | |
| +4.26% | +9.53% | -1.62% | 3.76% | -6.90% |
These classes hold the same portfolio, so the 81.34pp spread over 5 years is the cost difference between them — roughly 16.27pp a year — not a difference in what they own.
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 74.9% |
| Floating rate | 25.1% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 0.4% |
| 1-3y | 18.5% |
| 3-5y | 15.5% |
| 5-10y | 14.2% |
| 10y+ | 51.4% |
These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
Most of this fund’s sensitivity is to interest rates, with credit spreads carrying about half as much.
Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.
| Interest rates | 72% |
| Credit spreads | 28% |
Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.
Share of the fund's spread duration carried by each credit tier.
| Investment grade | +2.03 yr |
| High yield | +0.22 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 1 yr | 0.71 yr | 12% |
| 5 yr | 1.62 yr | 27% |
| 10 yr | 2.41 yr | 41% |
| 30 yr | 1.20 yr | 20% |
3 mo is NEGATIVE (-0.01 yr) — a deliberate hedge at that point on the curve, so it is not part of the band above.
| 3 mo | 0.01 yr | 1% |
| 1 yr | 0.42 yr | 19% |
| 5 yr | 0.84 yr | 37% |
| 10 yr | 0.67 yr | 30% |
| 30 yr | 0.32 yr | 14% |
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | -0.01 | +0.01 | +0.00 | $2.3k | $346 |
| 1 yr | +0.71 | +0.38 | +0.04 | $82.4k | $7.8k |
| 5 yr | +1.62 | +0.77 | +0.06 | $167.0k | $13.9k |
| 10 yr | +2.41 | +0.56 | +0.10 | $121.8k | $22.3k |
| 30 yr | +1.20 | +0.30 | +0.02 | $65.5k | $4.1k |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Duration contribution in years, summing to the fund's 5.93 yr.
This is where the fund's rate exposure sits, not its currency risk — most international bond funds hedge the currency back to dollars, and the size of those hedges is not in the filing. Tenors are also summed across curves, so a 5-year JPY point and a 5-year USD point are added together.
Holdings
By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | United States Treasury | 6.89% | $148.85M | — |
| — | Russell Investments Trust Company Commingled Employee Benefit Funds Trust-U.S. Cash Management Fund | 6.80% | $147.03M | — |
| — | FRENCH DISCOUNT T-BILL | 1.26% | $27.23M | — |
| — | United States Treasury1.25% · due 2028-06-30 | 1.18% | $25.58M | — |
| — | United States Treasury4.25% · due 2031-02-28 | 1.01% | $21.86M | — |
| — | Government National Mortgage Association4.50% · due 2056-05-20 | 0.89% | $19.28M | — |
| — | United States Treasury1.88% · due 2029-02-28 | 0.88% | $19.01M | — |
| — | BX Trust6.29% floating · due 2041-02-15 | 0.72% | $15.53M | — |
| — | Apna Park CLO DAC3.37% floating · due 2038-12-15 | 0.71% | $15.38M | — |
| — | BX Trust4.70% floating · due 2036-02-15 | 0.67% | $14.50M | — |
Top 10 positions are 21.02% of net assets, top 25 29.43%, across 508 issuers.
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