Tax-Exempt Bond Fund
RUSSELL INVESTMENT CO · 4 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Tax-Exempt 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 federal tax-exempt current income consistent with the preservation of capital. The Fund will invest, under normal circumstances, at least 80% of the value of its assets in investments the income from which is exempt from federal income tax.
The fund invests principally in investment-grade municipal debt obligations that generate federal tax-exempt interest income, with up to 20% of assets permitted in taxable municipal securities. A multi-manager approach oversees security selection, with Russell Investment Management coordinating asset allocation and cash management. The fund may also hold below-investment-grade municipal bonds, derivatives, variable rate demand notes, and U.S. government securities.
| Share class | Gross | Net |
|---|---|---|
| RLVSX | 0.57% | 0.51% |
| RTECX | 1.57% | 1.51% |
| RTEAX | 0.82% | 0.80% |
| RBCUX | 0.57% | 0.41% |
Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.
Portfolio turnover 45.00% · as of 2026 Q1
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 99.18% |
| Derivatives | 0.01% |
Derivatives are shown at market value, not notional exposure.
Latest quarter
What changed since the fund's previous filing
Largest new: FHLMC Multifamily VRD Certificates ×2, Pennsylvania Economic Development Financing Authority, Minnesota Municipal Gas Agency, Texas Municipal Gas Acquisition & Supply Corp V, Arkansas Development Finance Authority, State of Texas, Black Belt Energy Gas District
Largest exited: City of New York NY, Metropolitan Transportation Authority, County of Allen OH Hospital Facilities Revenue, Illinois Finance Authority, New York Energy Finance Development Corp, New York State Thruway Authority, Kentucky Bond Development Corp, State of New Jersey
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 |
|---|---|---|---|---|---|
| +5.64% | +11.15% | +6.13% | 3.03% | -3.69% | |
| +4.62% | +7.93% | +1.01% | 3.06% | -3.89% | |
| +5.38% | -50.62% | -81.28% | 3.05% | -53.14% | |
| +5.74% | +11.51% | +6.67% | 3.04% | -3.62% |
These classes hold the same portfolio, so the 87.95pp spread over 5 years is the cost difference between them — roughly 17.59pp 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 | 71.7% |
| Floating rate | 25.5% |
| Zero-coupon or unclassified | 2.7% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 2.8% |
| 1-3y | 5.8% |
| 3-5y | 5.4% |
| 5-10y | 15.8% |
| 10y+ | 70.1% |
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
More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.
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.
| Credit spreads | 54% |
| Interest rates | 46% |
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 | +4.79 yr |
| High yield | +0.57 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.05 yr | 1% |
| 1 yr | 0.33 yr | 7% |
| 5 yr | 1.24 yr | 27% |
| 10 yr | 2.43 yr | 53% |
| 30 yr | 0.50 yr | 11% |
| 3 mo | 0.03 yr | 1% |
| 1 yr | 0.43 yr | 8% |
| 5 yr | 1.56 yr | 29% |
| 10 yr | 2.74 yr | 51% |
| 30 yr | 0.61 yr | 11% |
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 | +0.05 | +0.02 | +0.01 | $14.2k | $3.4k |
| 1 yr | +0.33 | +0.35 | +0.08 | $229.8k | $52.7k |
| 5 yr | +1.24 | +1.36 | +0.21 | $890.1k | $136.6k |
| 10 yr | +2.43 | +2.50 | +0.24 | $1.64m | $158.5k |
| 30 yr | +0.50 | +0.57 | +0.04 | $373.8k | $23.6k |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Holdings
By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | Puerto Rico Sales Tax Financing Corp Sales Tax Revenue4.33% · due 2040-07-01 | 0.92% | $60.58M | — |
| — | Wisconsin Health & Educational Facilities Authority3.45% floating · due 2050-02-15 | 0.65% | $42.76M | — |
| — | Main Street Natural Gas Inc4.13% floating · due 2053-12-01 | 0.56% | $36.65M | — |
| — | East Baton Rouge Parish Industrial Development Board Inc3.45% floating · due 2035-08-01 | 0.55% | $35.98M | — |
| — | Kentucky Public Energy Authority5.00% floating · due 2055-01-01 | 0.54% | $35.69M | — |
| — | Southeast Energy Authority A Cooperative District5.00% floating · due 2055-10-01 | 0.51% | $33.79M | — |
| — | California Community Choice Financing Authority3.90% floating · due 2056-04-01 | 0.44% | $28.63M | — |
| — | Energy Southeast A Cooperative District5.00% · due 2033-09-01 | 0.43% | $28.22M | — |
| — | Commonwealth of Puerto Rico5.63% · due 2027-07-01 | 0.42% | $27.81M | — |
| — | Southeast Energy Authority A Cooperative District5.00% floating · due 2055-05-01 | 0.42% | $27.31M | — |
Top 10 positions are 5.44% of net assets, top 25 10.25%, across 1.2K issuers.
See more of this fund's book
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