Russell Investments Tax-Exempt Bond Fund Class M (RBCUX)

Overview

The fund is a specialized investment vehicle that aims to provide its investors with income that is exempt from federal income tax. It achieves this through a strategic investment policy that focuses on allocating at least 80% of its assets towards securities and investments generating tax-exempt income. The fund operates under normal market conditions and leverages borrowings for investment purposes to maximize returns for its investors while adhering to its tax efficiency mandate. Although the primary focus is on tax-exempt income, the fund maintains a degree of flexibility by allowing up to 20% of its assets to be invested in municipal debt securities that may generate income subject to federal income tax. This diversified approach enables the fund to pursue opportunities across different sectors of the municipal bond market while aiming to achieve its primary objective of tax-exempt income for its investors.

Products and Services

• Tax-Exempt Investment Options:

  The fund specializes in investment options that target generating income exempt from federal income tax. This is primarily achieved through investing in securities and other financial instruments that meet the criteria for tax exemption. The main attraction for investors is the potential to receive income without the burden of federal taxes, making these investments particularly appealing to those in higher tax brackets or seeking to minimize their taxable income.

• Municipal Debt Securities:

  Up to 20% of the fund's assets may be allocated to municipal debt securities that are not exempt from federal income tax. This segment includes investments in various municipal bonds that, while they may generate taxable income, can offer higher yields or diversification benefits. By including these taxable municipal bonds, the fund aims to balance risk and return, potentially enhancing overall portfolio performance while still focusing on the advantage of tax-exempt income.