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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number: 811-05371

Russell Investment Funds

(Exact name of registrant as specified in charter)

1301 2nd Avenue 18^th Floor, Seattle Washington 98101
(Address of principal executive offices) (Zip code)

Mary Beth R. Albaneze, Secretary and Chief Legal Officer
1301 2nd Avenue
18^th Floor
Seattle, Washington 98101
206-505-4846
______________________________________________

(Name and address of agent for service)

Registrant's telephone number, including area code: 800-787-7354

Date of fiscal year end: December 31

Date of reporting period: January 1, 2017 to December 31, 2017

Item 1. Reports to Stockholders

Russell Investment Funds

Russell Investment Funds is
a series investment company
with nine different investment
portfolios referred to as Funds.
These financial statements report
on five of these Funds.

Russell Investment Funds

Annual Report

December 31, 2017

Table of Contents

Page
To Our Shareholders	3
Market Summary	4
U. S. Strategic Equity Fund	9
U. S. Small Cap Equity Fund	27
International Developed Markets Fund	49
Strategic Bond Fund	77
Global Real Estate Securities Fund	129
Notes to Schedules of Investments	151
Notes to Financial Highlights	154
Notes to Financial Statements	155
Report of Independent Registered Public Accounting Firm	174
Tax Information	175
Affiliated Brokerage Transactions	176
Basis for Approval of Investment Advisory Contracts	177
Shareholder Requests for Additional Information	178
Disclosure of Information about Fund Trustees and Officers	179
Adviser, Money Managers and Service Providers	184

Russell Investment Funds

Copyright © Russell Investments 2018. All rights reserved.

Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates with
minority stakes held by funds managed by Reverence Capital Partners and Russell Investments’ management.

Frank Russell Company is the owner of the Russell trademark contained in this material and all trademark rights
related to the Russell trademarks, which the members of the Russell Investment group of companies are permitted
to use under license from Frank Russell Company. The members of the Russell Investments group of companies
are not affiliated in any manner with Frank Russell Company or any entity operation under the “FTSE RUSSELL”
brand.

Fund objectives, risks, charges and expenses should be carefully considered before in-
vesting. A prospectus containing this and other important information must precede or
accompany this material. Please read the prospectus carefully before investing.

Securities distributed through Russell Investments Financial Services, LLC, member FINRA and part
of Russell Investments.

Indices and benchmarks are unmanaged and cannot be invested in directly. Returns represent past performance,
are not a guarantee of future performance, and are not indicative of any specific investment. Index return
information is provided by vendors and although deemed reliable, is not guaranteed by Russell Investments or its
affiliates.

Performance quoted represents past performance and does not guarantee future results. The investment return and
principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. Current performance may be lower or higher than the performance data quoted.

To Our Shareholders

Fellow Investors,

Being an investor isn’t always easy. A long-term view, consistency and commitment can be vitally important to wealth
creation. Daily headlines and speculation move markets on a short-term basis. While seemingly amplified today, this
type of noise has been, and always will be, present. Consequently, it remains critical to have a thoughtful financial plan,
realistic goals and timelines, and regular check-ins with your financial advisor.

That said, the past 12 months ending December 31, 2017 have arguably been a relatively tame period in which to be a
patient and resolute investor. We don’t get to say that often so please consider some of these facts:

• All major asset classes were positive from January 1, 2017 to December 31, 2017. Global equity markets were up
double digits, fixed income shareholders were rewarded with price appreciation across the spectrum, and diversifying
real assets contributed, too.

• Volatility, as measured by the CBOE VIX, has been very low relative to historical averages. The calendar year-to-
date as of December 31 has seen the fewest number of 1% daily moves in the S&P500^® Index in 30 years.

• Global growth has been steady.

At Russell Investments, we expect a return of market volatility to levels more consistent with historical norms. After all,
the current U.S. stock market rally became the second longest and third strongest on record since 1936 on December 31,
2017. This has led U.S. stocks to become more fully valued. The Cyclically Adjusted Price to Earnings Ratio (CAPE)
stood at 33.2 as of December 2017, putting the U.S. stock market among the most expensive markets since this data
started being tracked in 1926. As the saying goes, “History doesn’t repeat itself, but often it does rhyme.” In past
periods of expensive U.S. equity markets, prices had very little upward potential left—low single digit returns. The
Federal Reserve has begun the process of raising interest rates and unwinding its balance sheet—reversing the years of
accommodative monetary policy instituted in response to the Global Financial Crisis. Even though fixed income markets
have remained resilient so far, the simple math of fixed income suggests that bond prices will come under pressure as
yields continue to rise.

Of course, it’s important to remember that markets and geopolitical events will test investors’ resolve every single year.
The past 12 months’ uncertainty surrounding important elections in France, the United Kingdom, South Korea, and
mounting geopolitical tensions between North Korea and the U.S. were no exception. Exceptional investors, however, are
those who look past the short-term uncertainties and have the commitment to stick with their long-term plan.

In this type of environment, we believe that investors who work with a trusted financial advisor to develop—and stick
with—a financial plan, realistic goals and timelines, will be most resilient. In addition, although diversification can’t
guarantee a profit or avoid losses, experience suggests that globally-diversified multi-asset portfolios further help
investors stay the course when markets get choppy. The following pages provide additional insights on the markets and
the performance of Russell Investments Funds (RIF) for the fiscal year ending December 31, 2017.

Russell Investments has an extensive, proud heritage of providing multi-asset solutions to help investors like you reach
your financial goals, whether you’re saving for retirement, already there or building a college fund. Thank you for the trust
you have placed in our firm. All of us at Russell Investments appreciate the opportunity to help you achieve financial
security.

President and Chief Executive Officer, Russell Investment Funds

¹ Represented by Russell 1000^® Index up 21.69%, MSCI EAFE Index up 25.03%, MSCI Emerging Markets Index up 37.28% (as of 12/31/2017)

² Represented by Bloomberg Barclays U.S. Aggregate Bond Index up 3.54%, ICE BofA Merill Lynch Global High Yield Index up 10.20%, Bloomberg
Barclays 1-10 Year Municipal Blend Index up 3.49% (as of 12/31/2017)

³ Represented by Bloomberg Commodity Index up 1.70%, S&P Global Infrastructure Index up 19.07%, FTSE EPRA/NAREIT Developed Index up
10.36%(as of 12/31/2017)

To Our Shareholders 3

Russell Investment Funds

Market Summary as of December 31, 2017 (Unaudited)

U.S. Equity Markets
Broadly measured by the Russell 3000^® Index, U.S. stocks returned 21.13% for the one-year period, which is the ninth
straight fiscal year ending December 31st that the Russell 3000^® Index has finished with a positive absolute return. The
Russell 3000^® Index finished with a positive absolute return in each of the fiscal year’s twelve months.

Within U.S. large capitalization stocks, factors that were rewarded during the fiscal year included high beta (beta is a
measure of a stock’s sensitivity to the direction of the market), high historical earnings growth, and the largest capitalization
stocks. Factors that trailed the market included high dividend yield, low price-to-book ratios, and high earnings variability.
Additionally, dynamic stocks outperformed defensive stocks and growth stocks outperformed value stocks across all
market capitalization tiers excluding mid cap. From a sector perspective, information technology, materials, and consumer
discretionary outperformed the Russell 1000^® Index by 16.83%, 2.02%, and 1.69%, respectively. Sectors that failed to find
traction during the one-year period were energy, telecommunication services, and real estate, trailing by 23.25%, 23.20%,
and 11.76%, respectively.

The U.S. large cap equity market started off 2017 very strong with the Russell 3000^® Index gaining 5.74% from January
through March. The Fed raised its benchmark interest rate by another 25 basis points in March on the back of positive
economic data. However, the interest rate hike was accompanied by dovish language from the Fed which put into question
how many additional rate hikes there might be in 2017. Additionally, the post-Trump risk rally lost some steam in the
latter stages of the period after the new health care bill failed to repeal and replace Obama Care. Retail sales slowed down
in February, however inflation ticked upward to 2.7% year-over-year. In addition, the February non-farm payrolls figure
beat expectations yet again and pushed the unemployment rate down to 4.7%. The U.S. GDP growth rate was also revised
slightly higher to 2.1% for the fourth quarter of 2016.

The Russell 3000^® Index increased 3.02% from April through June. While U.S. economic data came in slightly softer
than expected over the period, it was enough for the Fed to raise its short-term interest rate in June. Over the period,
oil prices trended lower and the U.S. dollar was weak compared to most major currencies. Retail sales slowed down in
May, while inflation also slipped lower to 1.9%, moderately under the Fed’s 2.0% target rate. Meanwhile, May non-farm
payrolls grew less then consensus and the unemployment rate fell to 4.3%. Additionally, the U.S. economy expanded faster
than  initially  reported during the first quarter (1.4% quarter-over-quarter), following an upward revision to secondary
estimates of 1.2%. The Fed raised short-term interest rates by a further 25 basis points to 1.25% as widely expected
and maintained its forecast for one more rate hike in 2017. Fed Chair Janet Yellen also added that the bank would start
unwinding its $4.5 trillion balance sheet later in the year by reducing reinvestment of maturing bonds.

The Russell 3000^® Index climbed 4.57% from July through September. U.S. political uncertainty, escalating geopolitical
tension in the Korean peninsula and tropical hurricanes rattled investors. However, a strengthening economic backdrop
influenced a risk-on market environment which also contributed to the Fed developing a slightly more hawkish outlook.
Over the period, commodity prices stabilized while a sluggish U.S. dollar lifted a basket of global currencies. In the U.S.,
the latest non-farm payrolls figure continued to point towards a healthy jobs market, although the unemployment rate
ticked higher to 4.4%. Retail sales slowed to 3.2% year-over-year, but inflation edged higher to 1.9% year-over-year, still
under the Fed’s 2.0% target rate. However, the second quarter U.S. economic growth rate was finalized at a strong 3.1%
quarter-over-quarter. Toward the end of the quarter, initial details were released on a potential tax reform plan which was
viewed favorably by market participants.

The Russell 3000^® Index continued its upward trend ending the October through December time period up 6.34%.
Investors gravitated toward larger market capitalization growth stocks which outpaced most other groups as the third
quarter reporting season surprised to the upside in terms of earnings growth, sales growth, and profit margins. In the
beginning of December, the Fed raised short-term interest rates by a further 25 basis points to 1.50% as widely expected
and maintained its forecast of three additional rate hikes in 2018. Toward the end of the December, the approval of the
much-anticipated tax package also added to the positive sentiment within equity markets. Additionally, incentives to

4 Market Summary

Russell Investment Funds

Market Summary as of December 31, 2017, continued — (Unaudited)

invest and repatriate overseas profits included in the broader tax legislation were viewed as allowing U.S. companies to
more easily pursue growth strategies.

Non-U.S. Developed Equity Markets
For the fiscal year ended December 31, 2017, developed non-U.S. equity markets, as measured by the Russell Developed
ex-U.S. Large Cap^® Index (the “Index”), were up 25.46%. Key drivers of market performance were the U.S. presidential
election, improving global growth, especially in emerging markets and the Eurozone, increases in government bond yields
and the Trump administration’s tax reform bill.

Amid the improving global growth outlook, momentum, growth and quality factors had the strongest outperformance during
the fiscal year followed by a modest outperformance of value factor as investors chased cheaper, cyclical stocks and stocks
with high earnings expectations. Sectors with high growth expectations such as technology, industrials and materials were
rewarded during the period while the more defensive sectors such as consumer staples, utilities and health care suffered.
Energy stocks also underperformed as commodity prices continued to face pressure from excess supply.

In the first quarter of the fiscal year, the Fed met expectations and raised its benchmark rate by another 25 basis points in
light of further positive economic data, following a similar rate increase in December 2016. Additionally, a post-Trump risk
rally lost some steam in the latter stages of the period, after President Trump lost support from his own Republican party for
his health care bill. In Europe, UK Prime Minister Theresa May triggered Article 50 to officially start “Brexit” negotiations,
while investors held caution over electoral developments in the Netherlands, France and Germany. Over the period, oil
prices trended lower while a weaker U.S. dollar lifted emerging market currencies. While markets ground higher during
this period, investor sentiment became more cautionary, avoiding areas like energy and materials.

In the second quarter of the fiscal year, U.S. economic data came in slightly softer than expected. However, it was enough
for the Fed to raise its benchmark rate for the second time in 2017. In Europe, Emmanuel Macron became France’s new
President while the general election in the UK resulted in a challenging “hung Parliament”. Over the period, oil prices
continued their trend lower along with a weakening U.S. dollar against a basket of currencies. The easing political tension
in Europe rewarded the value factor and financial companies in particular.

In the third quarter of the fiscal year, U.S. federal political dysfunction, escalating geopolitical tension in the Korean
peninsula and tropical hurricanes rattled investors. However, a strengthening economic backdrop engendered a risk-on
market environment, and informed developed central banks who became more comfortable with a more hawkish outlook.
Over the period, commodity prices stabilized, rewarding energy stocks. The technology sector continued a strong run as
evidence of disruption in traditional sectors such as retail drove investor sentiment.

In the fourth quarter of the fiscal year, U.S. President Donald Trump experienced his first major legislative victory with
a tax reform deal. Furthermore, strong economic growth in the third quarter paved the way for the Fed to raise its key
interest rate for a third time in December from 1.25% to 1.50%. A combination of strong economic growth and positive
expectations from tax reform led the U.S. markets higher during the quarter. Across the Atlantic, British Prime Minister
Theresa May struck a last-minute deal with the EU to move Brexit talks forward and in November the Bank of England
also raised interest rates for the first time in a decade whilst inflation hit 3.1%. Europe ex-UK and the UK were the biggest
underperformers during the quarter.

Emerging markets and Asia ex-Japan were the stand out non-U.S. markets over the fiscal year, as improving economic
fundamentals along with a weaker U.S. dollar were tailwinds. Conversely, the UK, Europe ex-UK and Canada were the
biggest laggards.

Emerging Markets
The Russell Emerging Markets^® Index, as measured in U.S. dollar terms (the “Index”), gained 36.3% over the fiscal year
ended December 31, 2017. The asset class remained buoyant in a period where global growth forecasts were upgraded and

Market Summary 5

Russell Investment Funds

Market Summary as of December 31, 2017, continued — (Unaudited)

inflation remained low. Many emerging countries started to see green shoots as they rebounded from their cyclical lows,
benefiting from lower interest rates and improving economic growth. The U.S. dollar weakened against most emerging
market currencies, despite increasing U.S. interest rates. The U.S. Federal Reserve’s approach was more dovish than
expected by the market which benefited emerging market currencies.

The Index surged 11.7% in the first quarter of 2017, outperforming developed markets as investor appetite for perceived
riskier investments returned. India (19.3%) was the strongest-performing country as Prime Minister Modi’s Party won
key state elections, with the victories demonstrating strong domestic support for Modi’s free-market reform programs.
Mexico (16.4%) rebounded where the peso was among the best-performing currencies against the U.S. dollar as the Trump
administration softened its rhetoric towards the country. South Africa (4.4%) underperformed as speculation surrounding
the independence of the Treasury following the removal of respected finance minister Pravin Gordhan and replacement of
nine other cabinet ministers by President Zuma weighed on sentiment and the value of the rand. After its 2016 rally, Russia
(-2.5%) returned some of its strong performance as hopes of potentially warmer relations and easing of sanctions with the
U.S. following Trump’s election victory partially dissipated.

The Index continued its 2017 rally in the second quarter with a 5.6% climb as sentiment towards the asset class remained
buoyant. A weaker U.S. dollar was a further tailwind, although it was another negative and volatile period for the price
of oil. Emerging Europe (ex-Russia) was the best performing region in emerging markets, following the market-friendly
French Presidential election result. This included Hungary (18.9%), Poland (13.5%) and the Czech Republic (13.1%).
Greece was the strongest-performing country after a 31.9% surge. This came as a deal with its creditors on economic
reforms was agreed after protracted negotiations, which enabled the release of the next bailout tranche. Asian countries
also outperformed over the period. Both India (3.3%) and South Africa (2.6%) lagged the overall benchmark return. In
India, first quarter GDP growth was the weakest in two years at 6.1% year-over-year, as the full impact of Prime Minister
Modi’s demonetisation policy began to come through. The government withdrew the 500 and 1000 rupee notes overnight to
crack down on the black market. South Africa underperformed in a period where President Zuma survived his ANC party
vote of no confidence. Natural resource and energy-driven markets were the weakest performing for the quarter as these
sectors underperformed the market, particularly Russia (-9.7%) and Brazil (-6.7%).

The Index increased 7.4% in the third quarter of 2017. Sentiment towards the asset class remained buoyant amid a tepid
global inflation environment. A weaker U.S. dollar and stable oil prices underpinned investor confidence. However, the
market edged lower in September amid a more hawkish outlook from the U.S. Federal Reserve and increased geopolitical
tensions within the Korean peninsula. Brazil (23.5%) rebounded from a weak second quarter driven by the improved
political environment where congress’ lower house voted down corruption charges against President Temer to keep him in
power. China (13.7%) outperformed, driven by Internet stocks, the strongest-performing sector. Russia climbed 15.5% in
a strong period for the energy sector. Elsewhere, Eastern European countries continued their healthy 2017 performance,
including the Czech Republic (11.3%), Hungary (9.7%) and Poland (8.8%) on robust macro numbers. South Korea (1.6%)
was hampered by heightened political tensions between North Korea and the U.S. Mexico (0.8%) underperformed as
NAFTA renegotiations remained strained. The country was also hit by a series of earthquakes which weighed on investor
confidence. Overall, Greece was the worst-performing country ahead of November’s bailout review with its creditors. The
market slipped 8.8% as banking stocks slumped on possible new European Central Bank and International Monetary Fund
stress tests.

The Index increased 7.7% in the final quarter of 2017. South Africa was the standout performer over the period, as
the market surged 21.4% in reaction to political developments. The South African rand strengthened over the period,
boosted by Moody’s maintaining the country’s Baa3 investment-grade rating. India also surged (13.8%) as the government
announced plans to inject $32 billion into state controlled banks. In Korea (13.1%), the government announced plans to
increase spending and raise the minimum wage, which helped to increase consumer confidence to its highest level since
2010. The market was further buoyed by news that South Korea and China agreed to normalize relations following an

6 Market Summary

Russell Investment Funds

Market Summary as of December 31, 2017, continued — (Unaudited)

earlier fallout over the installation of the U.S. anti-missile system in South Korea. Greece (10.6%) recovered from a weak
third quarter, as the government agreed to additional reforms in the latest bailout review with its creditors, which allowed
the release of the next tranche of funds. Mexico (-8.4%) was the worst-performing country, as it continued to suffer from
peso weakness driven by strained discussions on the future of the North American Free Trade Agreement. Brazil (-2.4%)
suffered from weakness in the real. Investors appeared disappointed that the much-anticipated pension reform bill was
watered down and delayed until February 2018.

U.S./Global Fixed Income Markets
The fiscal year ended December 31, 2017 was characterized by a risk on rally that saw both U.S. and European credit
spreads tighten, global growth improve and conducive monetary policies from central banks. Overall, this proved positive
for fixed income sectors around the globe. The U.S. yield curve saw interest rates rise for the fiscal year with the short end
of the curve rising 88 basis points on a 3-month treasury bill, while the 10-year treasury bond interest rate was flat. The
German Bund saw a parallel shift upwards in interest rates during 2017 and the British Gilt saw interest rates rise on the
short end of the curve and fall on the longer end. The U.S. experienced the largest interest rate moves as the U.S. Federal
Reserve (the “Fed”) raised interest rates three times during the year. Europe had historically low interest rates during the
fiscal year as the European Central Bank (“ECB”) kept rates low and continued with their quantitative easing program,
although it was cut in half to 30 billion euros per month in October. Corporate and high yield spreads grinded tighter on
the back of strong demand and the positive global growth backdrop. A key indicator of global fixed income performance,
the Bloomberg Barclays Global Aggregate Bond Index, returned 7.39% for the fiscal year, in U.S. dollar-hedged terms. The
index had a strong year due to increasing demand, monetary policy remaining accommodative, and the lack of geopolitical
fears being realized.

The Bloomberg Barclays Pan-European Aggregate Bond Index returned 14.21% during the period in U.S. dollar-hedged
terms, but most of that return was due to the euro appreciating 14.15% against the U.S. dollar. The U.S., in comparison,
returned 3.54% during the fiscal year as measured by the Bloomberg Barclays U.S. Aggregate Bond Index. In Europe,
treasuries underperformed the aggregate while financials in the corporate sector was a leading segment. In the U.S.,
the corporate market performed strongly led by lower quality bonds and strong demand from oversees. The U.S. dollar
depreciated against most European currencies, due to improving growth across Europe and the victory of political
candidates that support the European Union.

In the U.S., economic data remained broadly positive, with solid nonfarm payroll gains and a steady decline in the
unemployment rate to decade lows of 4.1%. Gross domestic product (“GDP”) growth had readings over 3.0% for both the
second and third quarter 2017, after it had dipped below 1.5% in the first quarter of 2017. The Consumer Price Index
(“CPI”) started the fiscal year strong at above 2.0% and was a contributing factor as the Fed raised rates, but as the CPI
fell during the year below the Fed’s long-term target of 2.0%, it becomes the Fed’s largest concern.

In Europe, the concerns about a “hard Brexit” diminished over the period, while most of Europe welcomed Emmanuel
Macron’s victory in the French presidential elections. The Bloomberg Barclays Euro Aggregate Corporate Index returned
3.5% over equivalent duration government bonds during the period as financials improved and GDP rose from 1.4% to
2.3% during the fiscal year. The European banking sector had a setback in 2nd quarter 2017 as three banks declared
bankruptcy.

Emerging markets were one of the strongest sectors in 2017 as the U.S. dollar depreciated, global growth was above-
trend and major central bank monetary policy settings were accommodative. Emerging market (“EM”) debt outperformed
developed markets (the Bloomberg Barclays EM Hard Currency Aggregate Bond Index returned 9.61%) as there was
high demand for yield. Local currency EM bonds (those issued in the issuing country’s own currency) were extremely
strong (the Bloomberg Barclays EM Local Currency Government Bond Index returned 14.27%) due to the depreciation of
the U.S. dollar versus a basket of emerging market currencies. The Czech koruna and Polish zloty both appreciated over

Market Summary 7

Russell Investment Funds

Market Summary as of December 31, 2017, continued — (Unaudited)

20% during the year as the koruna was unpegged from the euro and the zloty appreciated on the back of the strong Polish
economy and the appreciation in the euro.

Strong global corporate new issuance volumes continued in the fiscal year along with seemingly endless demand from
overseas buyers. Overall, corporate credit was up globally (the Bloomberg Barclays Global Aggregate Corporate Bond
Index returned 9.09%), with particularly strong performance out of the utilities sector of the market. The best performers
in the index were lower quality issues (BBB cohorts and below), longer maturities (7+ years) and higher beta countries
(Austria and Italy).

High yield corporate credit was among the best-performing segments of the global market (the Bloomberg Barclays Global
High Yield Bond Index returned 10.43%). High yield spreads tightened over the fiscal year due to the strong global
economy and investors searching for the slightest advantage in yields. The interest coverage ratio improved over the year
while the default rate for high yield securities fell, which were both positive factors.

8 Market Summary

Russell Investment Funds
U.S. Strategic Equity Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

U. S. Strategic Equity Fund			Russell 1000® Index**
	Total			Total
	Return			Return
1 Year	20.80	%	1 Year	21.69	%
5 Years	14.94	%§	5 Years	15.71	%§
10 Years	7.59	%§	10 Years	8.59	%§

U.S. Strategic Equity Fund 9

Russell Investment Funds
U.S. Strategic Equity Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The U. S. Strategic Equity Fund (the “Fund”) employs a multi-	value stocks across all market capitalization tiers excluding mid
manager approach whereby portions of the Fund are allocated	cap. From a sector perspective, information technology, materials,
to different money manager strategies. Fund assets not allocated	and consumer discretionary outperformed the Russell 1000®
to money managers are managed by Russell Investment	Index by 16.83%, 2.02%, and 1.69%, respectively. Sectors that
Management, LLC (“RIM”), the Fund’s advisor. RIM may change	failed to find traction during the one-year period were energy,
the allocation of the Fund’s assets among money managers at	telecommunication services, and real estate, trailing by 23.25%,
any time. An exemptive order from the Securities and Exchange	23.20%, and 11.76%, respectively.
Commission (“SEC”) permits RIM to engage or terminate a money
manager at any time, subject to approval by the Fund’s Board,	How did the investment strategies and techniques employed
without a shareholder vote. Pursuant to the terms of the exemptive	by the Fund and its money managers affect its benchmark-
order, the Fund is required to notify its shareholders within 90	relative performance?
days of when a money manager begins providing services. As of	The Fund’s factor exposures detracted from benchmark-relative
December 31, 2017, the Fund had five money managers.	performance over the period, including tilts away from stocks with
	high valuations (high price-to-book ratios) and the largest market
What is the Fund’s investment objective?	capitalization stocks. However, a tilt away from stocks with high
The Fund seeks to provide long term capital growth.	financial leverage (high debt-to-capital ratios) was beneficial and
How did the Fund perform relative to its benchmark for the	helped to mitigate some of the underperformance. Industry group
fiscal year ended December 31, 2017?	allocation decisions also detracted, including an overweight
	to insurance and an underweight to technology hardware &
For the fiscal year ended December 31, 2017, the Fund gained	equipment. Stock selection within the industrials, real estate, and
20.80%. This is compared to the Fund’s benchmark, the Russell	consumer staples sectors contributed positively to performance
1000® Index, which gained 21.69% during the same period. The	over the one-year period.
Fund’s performance includes operating expenses, whereas index
returns are unmanaged and do not include expenses of any kind.	The Fund employs discretionary and non-discretionary money
	managers. The Fund’s discretionary money managers select the
For the fiscal year ended December 31, 2017, the Morningstar®	individual portfolio securities for the assets assigned to them.
Insurance Large Blend Category, a group of funds that Morningstar	The Fund’s non-discretionary money managers provide a model
considers to have investment strategies similar to those of the	portfolio to RIM representing their investment recommendations,
Fund, gained 21.28%. This result serves as a peer comparison	based upon which RIM purchases and sells securities for the
and is expressed net of operating expenses.	Fund. Fund assets not allocated to discretionary money managers
RIM may assign a money manager a specific style or	include assets managed by RIM based upon model portfolios
capitalization benchmark other than the Fund’s index. However,	provided by non-discretionary money managers, the Fund’s cash
the Fund’s primary index remains the benchmark for the Fund	balances and assets which may be managed directly by RIM to
and is representative of the aggregate of each money manager’s	effect the Fund’s investment strategies and/or to actively manage
benchmark index.	the Fund’s overall exposures by investing in securities or other
	instruments that RIM believes will achieve the desired risk/
How did the market conditions described in the Market	return profile for the Fund.
Summary report affect the Fund’s performance?
Broadly measured by the Russell 3000® Index, U. S. stocks	With respect to certain of the Fund’s money managers, William
returned 21.13% for the one-year period, which is the ninth	Blair Investment Management, LLC was the best performing
straight calendar year that the Russell 3000® Index has finished	manager for the period and outperformed the Russell 1000®
with a positive absolute return. The Russell 3000® Index finished	Growth Index. Factor exposures were rewarded, including a tilt
with a positive absolute return in each of the calendar year’s	toward high forecasted growth and a tilt away from high financial
twelve months.	leverage (high debt-to-capital ratios) . Stock selection within the
	information technology, real estate, and health care sectors was
Within U. S. large capitalization stocks, factors that were rewarded	notably beneficial.
during the calendar year included high beta (beta is a measure of
a stock’s sensitivity to the direction of the market), high historical	Jacobs Levy Equity Management, Inc. had the lowest absolute
earnings growth, and the largest capitalization stocks. Factors that	return for the period, although they still outperformed the
trailed the market included high dividend yield, low price-to-book	Russell 1000® Value Index. Factor exposures were rewarded,
ratios, and high earnings variability. Additionally, dynamic stocks	including a tilt toward high beta stocks and a tilt away from the
outperformed defensive stocks and growth stocks outperformed	highest dividend yield stocks. An overweight to the information

10 U.S. Strategic Equity Fund

Russell Investment Funds
U.S. Strategic Equity Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

technology sector and an underweight to the consumer staples
sector contributed positively to performance. Stock selection	There were no changes to the Fund’s structure or the money
within the financials, health care, and consumer staples sectors	manager line up during the calendar year.
detracted.
	Money Managers as of December 31,
RIM manages a 14% (effective December 31, 2017) strategic	2017	Styles
allocation to a positioning strategy to seek to achieve the desired
	Barrow, Hanley, Mewhinney & Strauss, LLC Value
risk/return profile for the Fund. The positioning strategy utilizes	Jacobs Levy Equity Management, Inc.	Value
the output from a quantitative model to seek to position the portfolio	Mar Vista Investment Partners, LLC	Market-Oriented
to meet RIM’s overall preferred positioning. The positioning	Suffolk Capital Management LLC	Market-Oriented
strategy underperformed the Russell 1000® Index during the	William Blair Investment Management, LLC Growth
one-year period. Factor exposures were mixed, as a tilt toward	The views expressed in this report reflect those of the
the largest market capitalization stocks was rewarded while a tilt	portfolio managers only through the end of the period
away from the highest beta stocks detracted. Overweights to the	covered by the report. These views do not necessarily
telecommunication services and consumer staples sectors notably	represent the views of RIM, or any other person in RIM or
detracted during the year.	any other affiliated organization. These views are subject to
During the period, RIM used index futures contracts to equitize	change at any time based upon market conditions or other
the Fund’s cash. The decision to equitize the Fund’s cash was	events, and RIM disclaims any responsibility to update the
beneficial to the Fund’s absolute performance for the calendar	views contained herein. These views should not be relied
year as the market had a positive absolute return.	on as investment advice and, because investment decisions
	for a Russell Investment Funds (“RIF”) Fund are based on
Describe any changes to the Fund’s structure or the money	numerous factors, should not be relied on as an indication
manager line-up.	of investment decisions of any RIF Fund.

* Assumes initial investment on January 1, 2008.

** The Russell 1000^® Index includes the 1,000 largest companies in the Russell 3000^® Index. The Russell 1000^® Index represents the universe of stocks from
which most active money managers typically select. The Russell 1000^® Index return reflects adjustments from income dividends and capital gain distributions
reinvested as of the ex-dividend dates.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

U.S. Strategic Equity Fund 11

Russell Investment Funds
U.S. Strategic Equity Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this
administrative fees and other Fund expenses. The Example is	section do not reflect any Insurance Company Separate Account
intended to help you understand your ongoing costs (in dollars)	Policy Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017.	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,108.30	$	1,020.97
The information in the table under the heading “Actual	Expenses Paid During Period*	$	4.46	$	4.28
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 0.84%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) .
$1,000 (for example, an $8,600 account value divided by $1,000
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

12 U.S. Strategic Equity Fund

Russell Investment Funds
U.S. Strategic Equity Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
Common Stocks - 93.8%				Molson Coors Brewing Co. Class B		2,827	232
Consumer Discretionary - 9.6%				Mondelez International, Inc. Class A		70,423	3,014
Amazon. com, Inc. (Æ)		6,380	7,461	Monster Beverage Corp. (Æ)		36,026	2,280
Aramark		3,161	135	PepsiCo, Inc.		26,997	3,238
Arconic, Inc.		9,900	270	Philip Morris International, Inc.		51,187	5,408
Brunswick Corp.		2,400	133	Procter & Gamble Co. (The)		2,500	230
Carnival Corp.		8,393	557	Tyson Foods, Inc. Class A		12,634	1,024
Carter's, Inc.		315	37	Unilever NV		48,476	2,729
CBS Corp. Class B		20,826	1,229
Cooper-Standard Holdings, Inc. (Æ)		3,030	371				24,311
Dollar Tree, Inc. (Æ)		33,020	3,543
DR Horton, Inc.		26,561	1,357	Energy - 7.2%
				Anadarko Petroleum Corp.		10,300	552
eBay, Inc. (Æ)		13,784	520	Andeavor(Æ)		2,041	233
Estee Lauder Cos. , Inc. (The) Class A		13,187	1,678	Arch Coal, Inc. (Æ)		6,000	559
Ford Motor Co.		104,200	1,301	BP PLC - ADR		58,018	2,438
Fortune Brands Home & Security, Inc.		463	32	Chevron Corp.		47,479	5,945
GameStop Corp. Class A		2,573	46	Cimarex Energy Co.		3,130	382
Garmin, Ltd.		1,124	67	ConocoPhillips		17,298	949
General Motors Co.		38,178	1,565	Core Laboratories NV		16,779	1,838
Goodyear Tire & Rubber Co. (The)		1,155	37	EOG Resources, Inc.		12,293	1,327
Graham Holdings Co. Class B		565	315	Exxon Mobil Corp.		57,602	4,819
Home Depot, Inc. (The)		5,713	1,083	First Solar, Inc. (Æ)		9,232	623
Hyatt Hotels Corp. Class A(Æ)		1,392	102	Kosmos Energy, Ltd. (Æ)		10,300	71
International Game Technology PLC		4,100	109	Marathon Petroleum Corp.		20,439	1,348
Lear Corp.		942	166	National Oilwell Varco, Inc.		27,900	1,005
Madison Square Garden Co. (The) Class A(Æ)		4,240	894	Occidental Petroleum Corp.		39,685	2,924
McDonald's Corp.		7,352	1,266	Peabody Energy Corp. (Æ)		5,100	201
MGM Resorts International		36,081	1,205	Phillips 66		26,001	2,630
Michael Kors Holdings, Ltd. (Æ)		8,800	554	Royal Dutch Shell PLC Class A - ADR		18,760	1,251
Netflix, Inc. (Æ)		4,101	787	Schlumberger, Ltd.		26,825	1,808
NVR, Inc. (Æ)		12	42	Transocean, Ltd. (Æ)		16,052	171
O'Reilly Automotive, Inc. (Æ)		5,492	1,321	Valero Energy Corp.		18,246	1,677
PulteGroup, Inc.		5,088	169	World Fuel Services Corp.		11,673	328
PVH Corp.		1,741	239
Service Corp. International		4,222	158				33,079
Sirius XM Holdings, Inc.		76,900	412
Starbucks Corp.		74,327	4,269	Financial Services - 21.2%
Tapestry, Inc.		24,468	1,082	Affiliated Managers Group, Inc.		7,564	1,553
Target Corp.		18,576	1,212	Aflac, Inc.		1,759	154
Time Warner, Inc.		6,729	616	Allstate Corp. (The)		12,055	1,262
Vail Resorts, Inc.		4,377	930	Ally Financial, Inc.		7,074	206
Wal-Mart Stores, Inc.		33,222	3,281	American Express Co.		27,138	2,695
Walt Disney Co. (The)		28,725	3,088	American International Group, Inc.		22,200	1,323
Whirlpool Corp.		3,221	543	American National Insurance Co.		1,044	134
Yum China Holdings, Inc.		7,774	311	American Tower Corp. (ö)		27,755	3,960
				Aspen Insurance Holdings, Ltd.		13,100	532
			44,493	Assured Guaranty, Ltd.		3,619	123
				Athene Holding, Ltd. Class A(Æ)		8,410	435
Consumer Staples - 5.3%				Axis Capital Holdings, Ltd.		10,980	552
Altria Group, Inc.		25,163	1,797	Bank of America Corp.		187,858	5,545
Archer-Daniels-Midland Co.		31,532	1,264	Bank of New York Mellon Corp. (The)		12,949	697
Bunge, Ltd.		15,537	1,042	BB&T Corp.		823	41
Coca-Cola Co. (The)		3,242	149	Berkshire Hathaway, Inc. Class B(Æ)		31,846	6,313
Colgate-Palmolive Co.		7,100	536	Broadridge Financial Solutions, Inc.		3,297	299
Constellation Brands, Inc. Class A		3,458	790	Capital One Financial Corp.		22,983	2,288
Hershey Co. (The)		293	33	Cboe Global Markets, Inc.		3,020	376
Ingredion, Inc.		1,485	208	CBRE Group, Inc. Class A(Æ)		5,700	247
JM Smucker Co. (The)		836	104	Citigroup, Inc.		30,530	2,271
Kraft Heinz Co. (The)		2,990	233	Citizens Financial Group, Inc.		18,330	769

See accompanying notes which are an integral part of the financial statements.

U.S. Strategic Equity Fund 13

Russell Investment Funds
U.S. Strategic Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
Comerica, Inc.		9,800	851	Align Technology, Inc. (Æ)		463	103
Discover Financial Services		14,200	1,092	Allergan PLC(Æ)		13,726	2,246
Duke Realty Corp. (ö)		16,800	457	Allscripts Healthcare Solutions, Inc. (Æ)		27,228	396
Dun & Bradstreet Corp. (The)		2,290	271	Amgen, Inc.		1,385	241
E*Trade Financial Corp. (Æ)		18,798	931	Anthem, Inc. (Æ)		7,903	1,778
Equity Residential(ö)		15,000	957	Baxter International, Inc.		21,144	1,367
Essex Property Trust, Inc. (ö)		2,810	678	Becton Dickinson and Co.		796	170
Fidelity National Information Services, Inc.		3,151	296	Biogen, Inc. (Æ)		3,857	1,229
First Republic Bank		12,433	1,077	Bio-Rad Laboratories, Inc. Class A(Æ)		1,077	257
Fiserv, Inc. (Æ)		1,154	151	Bio-Techne Corp. (Æ)		2,190	284
Global Payments, Inc.		301	30	Bristol-Myers Squibb Co.		17,000	1,042
Goldman Sachs Group, Inc. (The)		6,024	1,535	Bruker Corp.		7,764	266
Hartford Financial Services Group, Inc.		38,365	2,159	Cardinal Health, Inc.		28,250	1,731
HCP, Inc. (ö)		44,856	1,170	Celgene Corp. (Æ)		11,930	1,245
Intercontinental Exchange, Inc.		23,605	1,666	Centene Corp. (Æ)		3,074	310
Jack Henry & Associates, Inc.		2,035	238	Cerner Corp. (Æ)		461	31
JPMorgan Chase & Co.		73,364	7,845	Charles River Laboratories International,
KeyCorp		96,386	1,944	Inc. (Æ)		440	48
Lazard, Ltd. Class A		1,027	54	Cigna Corp.		2,043	415
Leucadia National Corp.		2,750	73	Eli Lilly & Co.		3,086	261
Loews Corp.		33,441	1,673	Endo International PLC(Æ)		17,300	134
M&T Bank Corp.		6,996	1,196	Envision Healthcare Corp. (Æ)		1,995	69
Markel Corp. (Æ)		3,724	4,241	Express Scripts Holding Co. (Æ)		20,655	1,542
MasterCard, Inc. Class A		18,140	2,745	Gilead Sciences, Inc.		2,536	182
MetLife, Inc.		7,600	384	Henry Schein, Inc. (Æ)		866	61
Moody's Corp.		15,854	2,340	Humana, Inc.		3,008	747
Morgan Stanley		20,371	1,069	Illumina, Inc. (Æ)		388	85
Morningstar, Inc.		959	93	Intuitive Surgical, Inc. (Æ)		525	192
Nasdaq, Inc.		1,319	101	Johnson & Johnson		52,684	7,359
New York Community Bancorp, Inc.		30,744	400	Laboratory Corp. of America Holdings(Æ)		1,642	262
Northern Trust Corp.		11,300	1,129	LifePoint Health, Inc. (Æ)		2,447	122
PayPal Holdings, Inc. (Æ)		3,501	258	Mallinckrodt PLC(Æ)		6,400	144
PNC Financial Services Group, Inc. (The)		15,219	2,196	McKesson Corp.		8,974	1,400
Popular, Inc.		10,200	362	Medtronic PLC		11,354	916
Progressive Corp. (The)		39,356	2,217	Merck & Co. , Inc.		77,999	4,387
Prudential Financial, Inc.		11,400	1,311	PerkinElmer, Inc.		3,848	281
Reinsurance Group of America, Inc. Class A		5,320	830	Pfizer, Inc.		71,691	2,596
Santander Consumer USA Holdings, Inc.		5,900	110	Qiagen NV(Æ)		5,854	181
SBA Communications Corp. (Æ)(ö)		7,655	1,251	Quest Diagnostics, Inc.		2,546	251
SL Green Realty Corp. (ö)		8,500	858	Sage Therapeutics, Inc. (Æ)		3,064	505
State Street Corp.		37,062	3,617	Sanofi - ADR		23,603	1,015
SunTrust Banks, Inc.		18,916	1,222	Steris PLC		967	85
Total System Services, Inc.		1,968	156	Stryker Corp.		5,794	898
US Bancorp		49,974	2,678	Teleflex, Inc.		204	51
Vantiv, Inc. Class A(Æ)		841	62	Thermo Fisher Scientific, Inc.		1,442	274
Visa, Inc. Class A		21,138	2,411	United Therapeutics Corp. (Æ)		355	53
Voya Financial, Inc.		18,600	920	UnitedHealth Group, Inc.		21,024	4,634
Wells Fargo & Co.		84,986	5,157	Universal Health Services, Inc. Class B		1,799	204
XL Group, Ltd.		51,040	1,795	Varian Medical Systems, Inc. (Æ)		296	33
			98,032	WellCare Health Plans, Inc. (Æ)		2,728	549
				West Pharmaceutical Services, Inc.		302	30
Health Care - 10.6%				Zoetis, Inc. Class A		38,184	2,750
Abbott Laboratories		20,470	1,168				48,738
AbbVie, Inc.		1,025	99
Aerie Pharmaceuticals, Inc. (Æ)		20,514	1,226	Materials and Processing - 3.0%
Aetna, Inc.		1,047	189	Ashland Global Holdings, Inc.		11,909	848
Agilent Technologies, Inc.		3,391	227	Ball Corp. (Æ)		1,475	56
Akorn, Inc. (Æ)		12,929	417	Berry Plastics Group, Inc. (Æ)		2,443	143

See accompanying notes which are an integral part of the financial statements.

14 U.S. Strategic Equity Fund

Russell Investment Funds
U.S. Strategic Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
Celanese Corp. Class A		9,350	1,001	IHS Markit, Ltd. (Æ)		4,998	226
Crown Holdings, Inc. (Æ)		1,009	57	Jacobs Engineering Group, Inc.		12,500	825
Domtar Corp.		5,152	255	JB Hunt Transport Services, Inc.		291	33
DowDuPont, Inc.		32,919	2,345	Johnson Controls International PLC(Æ)		52,258	1,992
Ecolab, Inc.		18,173	2,439	Kansas City Southern		13,122	1,381
Hexcel Corp.		14,344	887	Kirby Corp. (Æ)		989	66
Huntsman Corp.		3,100	103	Korn/Ferry International		1,600	66
International Flavors & Fragrances, Inc.		1,272	194	L3 Technologies, Inc.		1,795	355
LyondellBasell Industries NV Class A		652	72	Landstar System, Inc.		311	32
Monsanto Co.		3,476	406	Lockheed Martin Corp.		2,452	787
NewMarket Corp.		76	30	ManpowerGroup, Inc.		8,466	1,067
Owens Corning		11,871	1,091	Mettler-Toledo International, Inc. (Æ)		3,217	1,993
Packaging Corp. of America		266	32	Navistar International Corp. (Æ)		1,300	56
PPG Industries, Inc.		9,970	1,165	Norfolk Southern Corp.		14,873	2,155
Praxair, Inc.		16,479	2,549	Northrop Grumman Corp.		1,763	541
Sonoco Products Co.		1,238	66	Old Dominion Freight Line, Inc.		828	109
Tahoe Resources, Inc.		60,615	290	Orbital ATK, Inc.		1,927	253
			14,029	Paychex, Inc.		2,275	155
				Quanta Services, Inc. (Æ)		40,053	1,567
Producer Durables - 16.7%				Raytheon Co.		28,893	5,428
3M Co.		1,561	367	Republic Services, Inc. Class A		1,807	122
Accenture PLC Class A		15,138	2,318	Rockwell Automation, Inc.		6,471	1,271
Adient PLC		11,619	914	Rockwell Collins, Inc.		4,166	565
AECOM(Æ)		32,632	1,212	Roper Technologies, Inc.		10,766	2,788
AGCO Corp.		13,400	957	Rush Enterprises, Inc. Class A(Æ)		3,100	158
Ametek, Inc.		3,201	232	Ryder System, Inc.		5,300	446
Automatic Data Processing, Inc.		1,136	133	Sensata Technologies Holding NV(Æ)		48,164	2,462
Avery Dennison Corp.		2,564	295	Southwest Airlines Co.		25,342	1,659
Babcock & Wilcox Co. (The) Class W(Æ)		3,708	224	Spirit AeroSystems Holdings, Inc. Class A		2,829	247
Boeing Co. (The)		5,182	1,529	Square, Inc. Class A(Æ)		2,189	76
Booz Allen Hamilton Holding Corp. Class A		1,868	71	Stanley Black & Decker, Inc.		11,728	1,990
Carlisle Cos. , Inc.		277	31	Teledyne Technologies, Inc. (Æ)		256	46
Caterpillar, Inc.		4,310	679	Textron, Inc.		20,165	1,141
Copa Holdings SA Class A		1,430	192	TransDigm Group, Inc.		12,541	3,444
Copart, Inc. (Æ)		17,502	756	Union Pacific Corp.		18,531	2,485
CoStar Group, Inc. (Æ)		775	230	United Technologies Corp.		19,202	2,450
CSX Corp.		860	47	Verisk Analytics, Inc. Class A(Æ)		17,643	1,694
Cummins, Inc.		3,885	686	Waters Corp. (Æ)		908	175
Danaher Corp.		16,153	1,499	Werner Enterprises, Inc.		800	31
Delta Air Lines, Inc.		22,483	1,259	Xerox Corp.		17,400	507
Dover Corp.		320	32	XPO Logistics, Inc. (Æ)		45,452	4,163
Eaton Corp. PLC		3,243	256	Xylem, Inc.		15,326	1,045
EMCOR Group, Inc.		7,700	629				77,041
Evoqua Water Technologies Corp. (Æ)		712	17
Expeditors International of Washington, Inc.		2,546	165	Technology - 17.3%
FedEx Corp.		6,282	1,568	Adobe Systems, Inc. (Æ)		20,436	3,581
Fluor Corp.		17,900	925	Alibaba Group Holding, Ltd. - ADR(Æ)		6,314	1,089
Fortive Corp.		44,424	3,214	Alphabet, Inc. Class A(Æ)		3,731	3,930
General Dynamics Corp.		2,105	428	Alphabet, Inc. Class C(Æ)		6,757	7,070
General Electric Co.		54,165	945	Amdocs, Ltd.		9,214	603
Genpact, Ltd.		18,050	573	Amphenol Corp. Class A		2,969	261
Graco, Inc.		1,455	66	Analog Devices, Inc.		336	30
Heico Corp. Class A		2,216	175	Apple, Inc.		42,826	7,248
HEICO Corp.		2,343	221	Applied Materials, Inc.		2,883	147
Honeywell International, Inc.		38,589	5,919	Arista Networks, Inc. (Æ)		1,174	277
Hubbell, Inc. Class B		516	70	ARRIS International PLC(Æ)		14,200	365
Huntington Ingalls Industries, Inc.		300	71	Arrow Electronics, Inc. (Æ)		2,556	206
IDEX Corp.		638	84	Benchmark Electronics, Inc. (Æ)		800	23

See accompanying notes which are an integral part of the financial statements.

U.S. Strategic Equity Fund 15

Russell Investment Funds
U.S. Strategic Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal		Fair
	Amount ($) or		Value		Amount ($) or			Value
		Shares	$			Shares		$
Broadcom, Ltd.		3,587	922	Centennial Resource Development, Inc. Class
CA, Inc.		5,291	176	A(Æ)		17,564		348
Cars. com, Inc. (Æ)		8,354	241	CenterPoint Energy, Inc.		2,357		67
Cisco Systems, Inc.		51,852	1,986	Consolidated Edison, Inc.		3,518		299
Cognizant Technology Solutions Corp. Class				Edison International		13,889		878
A		4,843	344	Entergy Corp.		21,107		1,718
CommScope Holding Co. , Inc. (Æ)		28,605	1,082	Exelon Corp.		8,669		342
Conduent, Inc. (Æ)		5,500	89	Great Plains Energy, Inc.		8,389		270
Corning, Inc.		11,477	367	Hawaiian Electric Industries, Inc.		10,452		378
DST Systems, Inc.		525	33	NiSource, Inc.		22,500		578
DXC Technology Co.		15,463	1,467	PG&E Corp.		14,600		655
EchoStar Corp. Class A(Æ)		4,001	240	Pinnacle West Capital Corp.		3,000		256
Electronic Arts, Inc. (Æ)		1,544	162	Southern Co. (The)		4,638		223
F5 Networks, Inc. (Æ)		1,012	133	Sprint Corp. (Æ)		21,100		124
Facebook, Inc. Class A(Æ)		38,094	6,722	T-Mobile US, Inc. (Æ)		12,703		807
FireEye, Inc. (Æ)		4,900	70	US Cellular Corp. (Æ)		6,100		230
Gartner, Inc. (Æ)		1,235	152	Verizon Communications, Inc.		35,824		1,895
Hewlett Packard Enterprise Co.		87,337	1,254	Vistra Energy Corp. (Æ)		8,000		147
HP, Inc. (Æ)		62,763	1,318					13,224
Intel Corp.		28,754	1,328
International Business Machines Corp.		8,493	1,303	Total Common Stocks
Intuit, Inc.		25,708	4,056
IPG Photonics Corp. (Æ)		1,018	218	(cost $335,466)				432,951
Jabil Circuit, Inc.		6,700	176
Juniper Networks, Inc.		37,825	1,078	Short-Term Investments - 6.0%
Lam Research Corp.		817	150	U. S. Cash Management Fund(@)		27,698,287	(8)	27,698
Leidos Holdings, Inc.		5,210	336	Total Short-Term Investments
Liberty Expedia Holdings, Inc. Class A(Æ)		5,351	237	(cost $27,699)				27,698
LogMeIn, Inc.		849	97
Marvell Technology Group, Ltd.		95,567	2,051	Total Investments 99.8%
Maxim Integrated Products, Inc.		3,453	181
Micron Technology, Inc. (Æ)		11,528	474	(identified cost $363,165)				460,649
Microsoft Corp.		86,612	7,409	Other Assets and Liabilities, Net
NetApp, Inc.		10,046	555	- 0.2%				1,078
Nuance Communications, Inc. (Æ)		10,800	177
NVIDIA Corp.		751	145	Net Assets - 100.0%				461,727
Oracle Corp.		108,938	5,150
Progress Software Corp.		4,900	209
Qorvo, Inc. (Æ)		1,249	83
QUALCOMM, Inc.		48,782	3,123
Red Hat, Inc. (Æ)		15,043	1,807
Salesforce. com, Inc. (Æ)		5,759	589
Skyworks Solutions, Inc.		1,417	135
Synopsys, Inc. (Æ)		13,746	1,172
Take-Two Interactive Software, Inc. (Æ)		1,209	133
Tech Data Corp. (Æ)		7,260	711
Texas Instruments, Inc.		20,609	2,152
Twitter, Inc. (Æ)		31,100	747
Tyler Technologies, Inc. (Æ)		455	81
Viavi Solutions, Inc. Class W(Æ)		100,600	879
VMware, Inc. Class A(Æ)		1,125	141
Western Digital Corp.		9,700	771
Xilinx, Inc.		2,259	152
Zynga, Inc. Class A(Æ)		102,400	410
			80,004
Utilities - 2.9%
AT&T, Inc.		103,149	4,009

See accompanying notes which are an integral part of the financial statements.

16 U.S. Strategic Equity Fund

Russell Investment Funds
U.S. Strategic Equity Fund

Schedule of Investments, continued — December 31, 2017

Futures Contracts
Amounts in thousands (except contract amounts)
														Value and
														Unrealized
													Appreciation
						Number of		Notional		Expiration			(Depreciation)
						Contracts		Amount			Date			$
Long Positions
S&P 500 E-Mini Index Futures							138	USD	18,464		03/18			(57	)
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)														(57	)
Presentation of Portfolio Holdings
Amounts in thousands
							Fair Value
								Practical
Portfolio Summary		Level 1			Level 2		Level 3	Expedient (a)			Total		% of Net Assets
Common Stocks
Consumer Discretionary	$	44,493		$	—	$	—	$	—	$	44,493			9.6
Consumer Staples		24,311			—		—		—		24,311			5.3
Energy		33,079			—		—		—		33,079			7.2
Financial Services		98,032			—		—		—		98,032			21.2
Health Care		48,738			—		—		—		48,738			10.6
Materials and Processing		14,029			—		—		—		14,029			3.0
Producer Durables		77,041			—		—		—		77,041			16.7
Technology		80,004			—		—		—		80,004			17.3
Utilities		13,224			—		—		—		13,224			2.9
Short-Term Investments		—			—		—		27,698		27,698			6.0
Total Investments		432,951			—		—		27,698		460,649			99.8
Other Assets and Liabilities, Net														0.2
														100.0
Other Financial Instruments
Liabilities
Futures Contracts		(57	)		—		—		—		(57	)		(—)*
Total Other Financial Instruments**	$	(57	)	$	—	$	—	$	—	$	(57	)

* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.

See accompanying notes which are an integral part of the financial statements.

U.S. Strategic Equity Fund 17

Russell Investment Funds
U.S. Strategic Equity Fund

Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

	Equity
Derivatives not accounted for as hedging instruments	Contracts
Location: Statement of Assets and Liabilities - Liabilities
Variation margin on futures contracts*	$	57
	Equity
Derivatives not accounted for as hedging instruments	Contracts
Location: Statement of Operations - Net realized gain (loss)
Futures contracts	$	2,697
Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Futures contracts	$	132

* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

18 U.S. Strategic Equity Fund

Russell Investment Funds
U.S. Strategic Equity Fund

Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Liabilities and Derivative Liabilities
				Gross			Net Amounts
				Amounts			of Liabilities
		Gross		Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Liabilities	Liabilities		Liabilities				Liabilities
Futures Contracts	Variation margin on futures contracts	$	67		$	—     $		67
Total Financial and Derivative Liabilities			67			—		67
Financial and Derivative Liabilities not subject to a netting agreement			(67	)		—		(67	)
Total Financial and Derivative Liabilities subject to a netting agreement		$	—		$	—     $		—

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

U.S. Strategic Equity Fund 19

Russell Investment Funds
U.S. Strategic Equity Fund

Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	363,165
Investments, at fair value(>)		460,649
Cash (restricted)(a)		720
Receivables:
Dividends and interest		502
Dividends from affiliated funds		21
Investments sold		1,224
Fund shares sold		2
Total assets		463,118
Liabilities
Payables:
Investments purchased		919
Fund shares redeemed		11
Accrued fees to affiliates		308
Other accrued expenses		86
Variation margin on futures contracts		67
Total liabilities		1,391
Net Assets	$	461,727
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	999
Accumulated net realized gain (loss)		12,839
Unrealized appreciation (depreciation) on:
Investments		97,484
Futures contracts		(57	)
Shares of beneficial interest		249
Additional paid-in capital		350,213
Net Assets	$	461,727
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	18.53
Net assets	$	461,727,292
Shares outstanding ($. 01 par value)		24,917,264
Amounts in thousands
(>)     Investments in affiliates, U. S. Cash Management Fund	$	27,698
(a)     Cash Collateral for Futures	$	720
(#) Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

20 U.S. Strategic Equity Fund

Russell Investment Funds
U.S. Strategic Equity Fund

Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Dividends	$	7,967
Dividends from affiliated funds		222
Total investment income		8,189
Expenses
Advisory fees		3,372
Administrative fees		231
Custodian fees		58
Transfer agent fees .		20
Professional fees		78
Trustees’ fees		12
Printing fees		61
Miscellaneous		25
Total expenses		3,857
Net investment income (loss)		4,332
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		42,951
Futures contracts		2,697
Net realized gain (loss)		45,648
Net change in unrealized appreciation (depreciation) on:
Investments		36,833
Investments in affiliated funds		(2	)
Futures contracts		132
Net change in unrealized appreciation (depreciation)		36,963
Net realized and unrealized gain (loss)		82,611
Net Increase (Decrease) in Net Assets from Operations	$	86,943

See accompanying notes which are an integral part of the financial statements.

U.S. Strategic Equity Fund 21

Russell Investment Funds
U.S. Strategic Equity Fund

Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	4,332		$	5,039
Net realized gain (loss)		45,648			35,950
Net change in unrealized appreciation (depreciation)		36,963			3,237
Net increase (decrease) in net assets from operations		86,943			44,226
Distributions
From net investments income		(4,792	)		(4,595	)
From net realized gain		(44,141	)		(27,937	)
Net decrease in net assets from distributions		(48,933	)		(32,532	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		(19,336	)		(22,982	)
Total Net Increase (Decrease) in Net Assets		18,674			(11,288	)
Net Assets
Beginning of period		443,053			454,341
End of period	$	461,727		$	443,053
Undistributed (overdistributed) net investment income included in net assets	$	999		$	1,460

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	1,301		$	22,933		439		$	7,344
Proceeds from reinvestment of distributions	2,691			48,933		1,943			32,532
Payments for shares redeemed	(5,019	)		(91,202	)	(3,735	)		(62,858	)
Total increase (decrease)	(1,027	)	$	(19,336	)	(1,353	)	$	(22,982	)

See accompanying notes which are an integral part of the financial statements.

22 U.S. Strategic Equity Fund

(This page intentionally left blank)

Russell Investment Funds
U.S. Strategic Equity Fund

Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

		$		$	$	$	$		$
	Net Asset Value,			Net	Net Realized	Total from	Distributions		Distributions
	Beginning of		Investment		and Unrealized	Investment	from Net		from Net
		Period	Income (Loss)(a)(b)		Gain (Loss)	Operations	Investment Income		Realized Gain
December 31, 2017		17.08		. 17	3.29	3.46	(. 19	)	(1.82	)
December 31, 2016		16.64		. 19	1.53	1.72	(. 17	)	(1.11	)
December 31, 2015		18.11		. 15	. 05	. 20	(. 15	)	(1.52	)
December 31, 2014		18.85		. 22	1.94	2.16	(. 22	)	(2.68	)
December 31, 2013		15.15		. 19	4.75	4.94	(. 22	)	(1.02	)

See accompanying notes which are an integral part of the financial statements.

24 U.S. Strategic Equity Fund

							%	%		%
			$		$		Ratio of Expenses	Ratio of Expenses	Ratio of Net
			Net Asset Value,	%	Net Assets,		to Average	to Average	Investment Income		%
	$		End of	Total	End of Period		Net Assets,	Net Assets,	to Average		Portfolio
Total Distributions			Period	Return(d)	(000	)	Gross(e)	Net(b)(e)	Net Assets(b)		Turnover Rate
	(2.01	)	18.53	20.80	461,727		. 83	. 83		. 94	80
	(1.28	)	17.08	10.64	443,053		. 83	. 83		1.15	101
	(1.67	)	16.64	1.11	454,341		. 84	. 84		. 84	99
	(2.90	)	18.11	11.70	488,531		. 86	. 86		1.13	101
	(1.24	)	18.85	32.92	475,100		. 84	. 84		1.07	86

See accompanying notes which are an integral part of the financial statements.

U.S. Strategic Equity Fund 25

Russell Investment Funds
U.S. Strategic Equity Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:

Advisory fees	$	285,744
Administration fees		19,572
Transfer agent fees		1,722
Trustee fees		1,028
	$	308,066

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

		Fair Value,							Change in
	Beginning of					Realized Gain			Unrealized	Fair Value, End				Income	Capital Gains
		Period		Purchases		Sales		(Loss)	Gain (Loss)	of Period		Distributions			Distributions
U. S. Cash Management Fund	$	23,391	$	129,402	$	125,093	$	—	$         (2)	$	27,698		$	222		$	—
	$	23,391	$	129,402	$	125,093	$	—	$         (2)	$	27,698		$	222		$	—

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	364,910,093
Unrealized Appreciation	$	101,493,829
Unrealized Depreciation		(5,755,061	)
Net Unrealized Appreciation (Depreciation)	$	95,738,768
Undistributed Ordinary Income	$	5,148,630
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	10,377,349
Tax Composition of Distributions
Ordinary Income	$	19,782,407
Long-Term Capital Gains	$	29,150,493

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent book-tax differences.  Book-tax
differences are primarily due to foreign currency gains and losses, reclassifications of dividends, differences in treatment of income
from swaps, net operating losses, investments in partnerships, investments in passive foreign investment companies (PFICs), tax
straddle transaction, use of tax equalization and foreign capital gains taxes.  These adjustments have no impact on the net assets. At
December 31, 2017, the Statement of Assets and Liabilities have been adjusted by the following amounts (in thousands):

Undistributed net investment income	$	(1	)
Accumulated net realized gain (loss)		1
Additional paid-in capital		—

See accompanying notes which are an integral part of the financial statements.

26 U.S. Strategic Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

U. S. Small Cap Equity Fund			Russell 2000® Index**
	Total			Total
	Return			Return
1 Year	15.48	%	1 Year	14.65	%
5 Years	12.58	%§	5 Years	14.12	%§
10 Years	6.51	%§	10 Years	8.71	%§
			U. S. Small Cap Equity Linked Benchmark ***
				Total
				Return
			1 Year	14.65	%
			5 Years	14.12	%§
			10 Years	9.10	%§

U.S. Small Cap Equity Fund 27

Russell Investment Funds
U.S. Small Cap Equity Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The U. S. Small Cap Equity Fund (the “Fund”) employs a multi-	well as companies with higher quality characteristics such as
manager approach whereby Russell Investment Management,	lower financial leverage and higher returns-on-equity. Within the
LLC (“RIM”) manages a portion of the Fund's assets based upon	U. S. small cap market, a preference for value over growth stocks
model portfolios provided by multiple non-discretionary money	negatively impacted benchmark relative performance given
managers. RIM may change the allocation of the Fund's assets at	rotation away from this factor in early 2017. The capitalization tilt
any time. An exemptive order from the Securities and Exchange	also detracted due to large cap stocks outperforming small cap
Commission (“SEC”) permits RIM to engage or terminate a money	stocks in 2017. The Fund’s quality positioning added value as
manager at any time, subject to approval by the Fund’s Board,	companies with low financial leverage outperformed.
without a shareholder vote. Pursuant to the terms of the exemptive	From a sector standpoint, the expectation for a slow growth U. S.
order, the Fund is required to notify its shareholders within 90	economic environment led to the Fund’s overweight in sectors such
days of when a money manager begins providing services. As of	as financials and industrials. The Fund remained underweight the
December 31, 2017, the Fund had seven money managers.	highly volatile biotechnology industry as well as sectors that are
What is the Fund’s investment objective?	traditionally considered to be interest rate sensitive such as real
The Fund seeks to provide long term capital growth.	estate and utilities. The Fund’s interest rate sensitive positioning
	positively impacted Fund performance, while the underweight
How did the Fund perform relative to its benchmark for the	to biotechnology detracted. Outperforming holdings within the
fiscal year ended December 31, 2017?	technology and financials sectors were the primary driver of
For the fiscal year ended December 31, 2017, the Fund gained	positive benchmark relative returns.
15.48%. This is compared to the Fund’s benchmark, the Russell	The Fund’s money managers have non-discretionary assignments
2000® Index, which gained 14.65% during the same period. The	pursuant to which they provide a model portfolio to RIM
Fund’s performance includes operating expenses, whereas index	representing their investment recommendations, based upon
returns are unmanaged and do not include expenses of any kind.	which RIM purchases and sells securities for the Fund. With
For the fiscal year ended December 31, 2017, the Morningstar®	respect to this portion of the Fund, RIM manages the Fund’s
Insurance Small Blend Category, a group of funds that Morningstar	assets based upon the model portfolios provided by the Fund’s
considers to have investment strategies similar to those of the	money managers. RIM also manages the portion of the Fund's
Fund, gained 12.76%. This result serves as a peer comparison	assets that RIM determines not to manage based upon model
and is expressed net of operating expenses.	portfolios provided by the Fund's money managers. This includes
RIM may assign a money manager a specific style or	assets managed directly by RIM to effect the Fund's investment
capitalization benchmark other than the Fund’s index. However,	strategies and/or to actively manage the Fund's overall exposures
the Fund’s primary index remains the benchmark for the Fund	to seek to achieve the desired risk/return profile for the Fund.
and is representative of the aggregate of each money manager’s	RIM also manages the Fund’s cash balances.
benchmark index.	With respect to certain of the Fund’s money managers, Timpani
	Capital Management LLC was the best performing money manager
How did the market conditions described in the Market	for the fiscal year and outperformed the Russell 2000® Growth
Summary report affect the Fund’s performance?	Index. Stock selection within the technology and consumer
The fiscal year ended December 31, 2017 saw the Fund outperform	discretionary sectors was a positive contributor. A preference
the Russell 2000® Index. Investor sentiment rotated strongly in	for holdings with higher price momentum and lower profitability
early 2017 toward high growth and larger cap companies. The	(return-on-equity) also added value.
leadership of less profitable growth companies concentrated in
the technology and health care sectors continued for the majority	Snow Capital Management L. P. faced the strongest headwinds
of 2017 as earnings growth of these companies was boosted by	over the fiscal year and underperformed the Russell 2000®
exposure to international markets and a weaker U. S. dollar. Near	Value Index. Underperforming holdings within the industrial
the end of the fiscal year, investors rotated towards value stocks	and technology sectors detracted value. A tilt towards the energy
poised to benefit from U. S. tax reform.	sector also negatively impacted performance.
	During the period, RIM utilized a positioning strategy to control
How did the investment strategies and techniques employed	Fund-level exposures and risks through the purchase of a stock
by the Fund and its money managers affect its benchmark-	portfolio. Using the output from a quantitative model, the strategy
relative performance?	seeks to position the portfolio to meet RIM’s overall preferred
Over the period, the Fund maintained exposure to small and	positioning with respect to Fund exposures along factor and
micro capitalization stocks trading at discounted valuations as

28 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

industry dimensions. The positioning strategy outperformed the	the incoming managers and RIM’s belief that the more distinct
Russell 2000® Index for the fiscal year. The Fund’s positioning	substyles of the new managers will increase Fund diversification.
strategy provided the desired exposure to higher value (overweight
stocks with lower valuations than the benchmark), higher quality	Money Managers as of December 31,
(overweight stocks with lower debt and higher profitability),	2017	Styles
and higher momentum stocks. From a sector perspective, the	Ancora Advisor, LLC	Small Cap Core
positioning strategy was overweight health care and underweight	Copeland Capital Management LLC	Small Cap Dividend
		Growth
energy. During the fiscal year, the momentum, quality, and sector	DePrince, Race & Zollo, Inc.	Small Cap Value
positioning was a tailwind to performance and led the strategy to	Falcon Point Capital, LLC	Micro/Small Cap Growth
outperform, while the value exposure detracted.	Penn Capital Management Company, Inc.	Micro/Small Cap Core
	Snow Capital Management L. P.	Small Cap Value
During the period, RIM partially equitized the Fund’s cash using	Timpani Capital Management, LLC	Small Cap Growth
index futures contracts to provide the Fund with greater market	The views expressed in this report reflect those of the
exposure. This had a positive impact on the Fund’s absolute	portfolio managers only through the end of the period
performance.	covered by the report. These views do not necessarily
Describe any changes to the Fund’s structure or the money	represent the views of RIM, or any other person in RIM or
manager line-up.	any other affiliated organization. These views are subject to
In December 2017, RIM terminated RBC Global Asset	change at any time based upon market conditions or other
Management Inc. and Monarch Partners Asset Management	events, and RIM disclaims any responsibility to update the
LLC, and hired Falcon Point Capital LLC, Copeland Capital	views contained herein. These views should not be relied
Management LLC, Ancora Advisors LLC, and Penn Capital	on as investment advice and, because investment decisions
Management Company, Inc. These changes were driven by RIM’s	for a Russell Investment Funds (“RIF”) Fund are based on
higher confidence in the prospective excess return potential of	numerous factors, should not be relied on as an indication
	of investment decisions of any RIF Fund.

* Assumes initial investment on January 1, 2008.

** Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000^® Index is a subset of the Russell 3000^®
Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a
combination of their market cap and current index membership. The Russell 2000^® Index is constructed to provide a comprehensive and unbiased small-cap
opportunity barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap
opportunity set.

*** The U.S. Small Cap Equity Linked Benchmark provides a means to compare the Fund’s average annual returns to a secondary benchmark that takes into
account historical changes in the Fund’s primary benchmark. The Aggressive Equity Linked Benchmark represents the returns of the Russell 2500^TM Index
through April 30, 2012 and the returns of the Russell 2000^® Index thereafter.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

U.S. Small Cap Equity Fund 29

Russell Investment Funds
U.S. Small Cap Equity Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this
administrative fees and other Fund expenses. The Example is	section do not reflect any Insurance Company Separate Account
intended to help you understand your ongoing costs (in dollars)	Policy Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017.	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,102.70	$	1,020.01
The information in the table under the heading “Actual	Expenses Paid During Period*	$	5.46	$	5.24
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 1.03%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) .
$1,000 (for example, an $8,600 account value divided by $1,000
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

30 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
Common Stocks - 93.4%				IMAX Corp. (Æ)		4,206	97
Consumer Discretionary - 14.7%				Instructure, Inc. (Æ)		4,605	152
2U, Inc. (Æ)		6,191	399	J Alexander's Holdings, Inc. (Æ)		44,681	433
Acushnet Holdings Corp.		35,465	748	Jack in the Box, Inc.		4,158	408
Adtalem Global Education, Inc. (Æ)		3,635	153	Johnson Outdoors, Inc. Class A		1,650	102
AH Belo Corp. Class A		7,237	35	Kirkland's, Inc. (Æ)		1,899	23
AMC Entertainment Holdings, Inc. Class				LCI Industries		2,431	316
A(Ñ)		3,932	59	Lee Enterprises, Inc. (Æ)		59,856	141
American Axle & Manufacturing Holdings,				Lithia Motors, Inc. Class A		4,711	535
Inc. (Æ)		4,433	75	Malibu Boats, Inc. Class A(Æ)		3,977	118
American Eagle Outfitters, Inc.		14,202	267	MarineMax, Inc. (Æ)		1,507	28
American Outdoor Brands Corp. (Æ)		8,147	105	MDC Partners, Inc. Class A(Æ)		9,081	89
B. Riley Financial, Inc.		21,781	394	Meredith Corp.		7,572	500
Big 5 Sporting Goods Corp. (Ñ)		14,864	113	Meritor, Inc. (Æ)		14,193	333
Big Lots, Inc. (Ñ)		21,748	1,222	Michael Kors Holdings, Ltd. (Æ)		2,347	148
Bloomin' Brands, Inc.		16,737	357	Monarch Casino & Resort, Inc. (Æ)		1,736	78
BMC Stock Holdings, Inc. (Æ)		27,111	686	Nexstar Media Group, Inc. Class A		11,080	866
Bojangles', Inc. (Æ)		36,021	425	Nutrisystem, Inc.		2,432	128
Boyd Gaming Corp.		3,552	124	Ollie's Bargain Outlet Holdings, Inc. (Æ)		8,356	445
Canada Goose Holdings, Inc. (Æ)		12,644	399	Outfront Media, Inc. (ö)		42,455	985
Career Education Corp. (Æ)		8,358	101	Papa John's International, Inc.		4,982	280
Carriage Services, Inc. Class A		10,968	282	Penn National Gaming, Inc. (Æ)		1,053	33
Carrols Restaurant Group, Inc. (Æ)		2,441	30	Penske Automotive Group, Inc.		14,790	708
Central Garden & Pet Co. (Æ)		10,337	402	Pinnacle Entertainment, Inc. (Æ)		1,543	51
Central Garden & Pet Co. Class A(Æ)		10,403	392	Planet Fitness, Inc. Class A(Æ)		22,469	778
Century Casinos, Inc. (Æ)		4,644	42	Pool Corp.		5,730	743
Century Communities, Inc. (Æ)		5,831	181	QuinStreet, Inc. (Æ)		4,670	39
Cheesecake Factory, Inc. (The)(Ñ)		22,847	1,102	Red Robin Gourmet Burgers, Inc. (Æ)		6,767	382
Chegg, Inc. (Æ)		58,894	961	Red Rock Resorts, Inc. Class A		1,522	51
Chico's FAS, Inc.		6,889	61	Sally Beauty Holdings, Inc. (Æ)		10,950	205
Children's Place, Inc. (The)		4,130	600	Scientific Games Corp. Class A(Æ)		1,014	52
Chuy's Holdings, Inc. (Æ)		7,461	209	SeaWorld Entertainment, Inc. (Æ)		2,807	38
Columbia Sportswear Co.		9,207	662	Signet Jewelers, Ltd. (Ñ)		10,433	590
Conn's, Inc. (Æ)		26,435	940	Sinclair Broadcast Group, Inc. Class A		777	29
Cooper Tire & Rubber Co.		28,700	1,015	Skechers U. S. A. , Inc. Class A(Æ)		41,172	1,559
Cracker Barrel Old Country Store, Inc.		363	58	Standard Motor Products, Inc.		8,978	403
Dana Holding Corp.		6,673	214	Steven Madden, Ltd. (Æ)		5,709	267
Deckers Outdoor Corp. (Æ)		4,688	376	Sturm Ruger & Co. , Inc. (Ñ)		4,321	241
Delta Apparel, Inc. (Æ)		14,628	295	Superior Uniform Group, Inc.		27,089	724
Eldorado Resorts, Inc. (Æ)(Ñ)		32,514	1,079	Tandy Leather Factory, Inc. (Æ)(Å)		22,912	176
Entravision Communications Corp. Class A		12,022	86	Tenneco, Inc.		3,468	203
Ethan Allen Interiors, Inc.		4,449	127	Texas Roadhouse, Inc. Class A		1,300	68
EW Scripps Co. (The) Class A(Æ)		3,547	55	Thor Industries, Inc.		5,115	771
Five Below, Inc. (Æ)		399	26	Tower International, Inc.		3,588	110
Floor & Decor Holdings, Inc. Class A(Æ)		6,852	334	Townsquare Media, Inc. Class A(Æ)		3,108	24
Fortress Transportation & Infrastructure				TravelCenters of America LLC(Æ)		53,117	218
Investors LLC		42,115	839	TRI Pointe Group, Inc. (Æ)		10,305	185
Fox Factory Holding Corp. (Æ)		7,509	292	Tropicana Entertainment, Inc. (Æ)		3,225	182
Full House Resorts, Inc. (Æ)		39,323	154	Universal Electronics, Inc. (Æ)		1,342	63
Genesco, Inc. (Æ)		24,245	788	Urban One, Inc. (Æ)		19,616	34
Gentherm, Inc. (Æ)		17,162	545	Urban Outfitters, Inc. (Æ)		4,035	141
G-III Apparel Group, Ltd. (Æ)		3,209	118	US Auto Parts Network, Inc. (Æ)		52,854	133
Grand Canyon Education, Inc. (Æ)		6,541	586	Visteon Corp. (Æ)		3,658	458
Gray Television, Inc. (Æ)		16,782	281	William Lyon Homes Class A(Æ)		25,522	742
Guess?, Inc.		6,766	114	Wingstop, Inc.		6,704	261
Horizon Global Corp. (Æ)		18,742	263	Winnebago Industries, Inc.		3,451	192
HSN, Inc.		16,655	672
ILG, Inc. (Æ)		4,381	125

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 31

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
ZAGG, Inc. (Æ)		17,140	316	Financial Services - 22.6%
			37,343	Acadia Realty Trust(ö)		3,004	82
				Agree Realty Corp. (ö)		1,954	101
Consumer Staples - 4.0%				Ambac Financial Group, Inc. (Æ)		3,553	57
Andersons, Inc. (The)		17,546	547	American Assets Trust, Inc. (ö)		1,669	64
B&G Foods, Inc. Class A(Ñ)		22,083	776	American Equity Investment Life Holding
Boston Beer Co. , Inc. Class A(Æ)		441	84	Co.		48,472	1,491
Calavo Growers, Inc.		8,169	689	Amerisafe, Inc.		5,319	328
Cal-Maine Foods, Inc. (Æ)(Ñ)		2,806	125	AmTrust Financial Services, Inc. (Ñ)		7,905	80
Casey's General Stores, Inc.		3,660	410	Argo Group International Holdings, Ltd.		2,005	124
Core-Mark Holding Co. , Inc.		33,801	1,067	Ashford Hospitality Prime, Inc. (ö)		7,470	73
Energizer Holdings, Inc.		44,635	2,141	Aspen Insurance Holdings, Ltd.		29,344	1,191
Farmer Brothers Co. (Æ)		1,446	46	Banc of California, Inc.		2,162	45
Flowers Foods, Inc.		44,673	863	BancFirst Corp.		1,676	86
Fresh Del Monte Produce, Inc.		2,244	107	Bancorp, Inc. (The)(Æ)		30,468	301
Freshpet, Inc. (Æ)		9,996	189	Bank of Marin Bancorp		1,736	118
Helen of Troy, Ltd. (Æ)		1,199	116	Bank of NT Butterfield & Son, Ltd. (The)		3,848	140
J&J Snack Foods Corp.		3,626	551	Bank of the Ozarks, Inc.		13,877	672
John B Sanfilippo & Son, Inc.		1,326	84	BankUnited, Inc.		30,299	1,234
Lancaster Colony Corp.		650	84	BBCN Bancorp, Inc.		5,123	93
Medifast, Inc.		1,646	115	Berkshire Hills Bancorp, Inc.		2,450	90
New Age Beverages Corp. (Æ)(Ñ)		15,880	34	Blackhawk Network Holdings, Inc. Class
Nomad Foods, Ltd. (Æ)		60,930	1,030	A(Æ)		17,928	639
Sanderson Farms, Inc.		841	117	Brandywine Realty Trust(ö)		30,471	554
Tootsie Roll Industries, Inc. (Ñ)		1,759	64	Brookline Bancorp, Inc.		4,999	78
Universal Corp.		13,326	700	Cannae Holdings, Inc. (Æ)		56,997	971
USANA Health Sciences, Inc. (Æ)		1,116	83	Capital Southwest Corp.		5,593	93
Village Super Market, Inc. Class A		3,140	72	Capitol Federal Financial, Inc.		5,208	70
Weis Markets, Inc.		2,084	86	Capstar Financial Holdings, Inc. (Æ)		3,403	71
				Carolina Financial Corp.		2,744	102
			10,180	CatchMark Timber Trust, Inc. Class A(ö)		36,645	481
				Cathay General Bancorp		2,829	119
Energy - 2.5%				Central Valley Community Bancorp		3,937	79
Basic Energy Services, Inc. (Æ)		2,364	55	Chatham Lodging Trust(ö)		4,261	97
C&J Energy Services, Inc. (Æ)		755	25	Chemical Financial Corp.		8,153	436
Callon Petroleum Co. (Æ)		14,981	182	Chemung Financial Corp.		1,765	85
Carrizo Oil & Gas, Inc. (Æ)		14,582	310	Chesapeake Lodging Trust(ö)		4,052	110
Civeo Corp. (Æ)		17,186	47	Civista Bancshares, Inc.		1,600	35
CONSOL Energy, Inc. (Æ)		7,630	301	CNO Financial Group, Inc.		42,747	1,055
Gores Holdings, Inc. Class A(Æ)		37,652	558	CoBiz Financial, Inc.		22,320	446
Gulfport Energy Corp. (Æ)		74,009	944	Cohen & Steers, Inc.		12,736	602
Independence Contract Drilling, Inc. (Æ)		7,700	31	Columbia Banking System, Inc.		3,587	156
Keane Group, Inc. (Æ)		2,637	50	Community Bank System, Inc.		7,180	386
Mammoth Energy Services, Inc. (Æ)		2,683	53	Cousins Properties, Inc. (ö)		64,147	593
Newpark Resources, Inc. (Æ)		28,158	242	Cowen Group, Inc. Class A(Æ)		7,372	101
Patterson-UTI Energy, Inc.		1,811	42	CyrusOne, Inc. (ö)		8,619	513
PBF Energy, Inc. Class A		31,598	1,120	Diamond Hill Investment Group, Inc.		1,275	263
Range Resources Corp.		14,108	241	DiamondRock Hospitality Co. (ö)		9,660	109
Ring Energy, Inc. (Æ)		6,460	90	EastGroup Properties, Inc. (ö)		1,434	127
Sanchez Energy Corp. (Æ)		5,805	31	Education Realty Trust, Inc. (ö)		25,377	886
SemGroup Corp. Class A		17,244	521	eHealth, Inc. (Æ)		4,279	74
Southwestern Energy Co. (Æ)		154,266	861	Employers Holdings, Inc.		3,405	151
SunCoke Energy, Inc. (Æ)		22,195	266	Enova International, Inc. (Æ)		5,729	87
Transocean, Ltd. (Æ)		6,759	72	Evercore, Inc. Class A		7,447	670
Unit Corp. (Æ)		14,121	311	Everi Holdings, Inc. (Æ)		8,067	61
WPX Energy, Inc. (Æ)		3,835	54	Ezcorp, Inc. Class A(Æ)		6,882	84
			6,407	Fair Isaac Corp.		570	87
				FB Financial Corp. (Æ)		1,750	73

See accompanying notes which are an integral part of the financial statements.

32 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
FBL Financial Group, Inc. Class A		1,037	72	Live Oak Bancshares, Inc.		3,394	81
Financial Institutions, Inc.		2,390	74	LPL Financial Holdings, Inc.		4,033	230
First BanCorp(Æ)		23,846	425	Mack-Cali Realty Corp. (ö)		3,969	86
First Citizens BancShares, Inc. Class A		265	107	MB Financial, Inc.		2,736	122
First Commonwealth Financial Corp.		70,745	1,013	Medical Properties Trust, Inc. (ö)		23,885	329
First Defiance Financial Corp.		1,427	74	Mercantile Bank Corp.		10,270	363
First Financial Bancorp		3,462	91	Meridian Bancorp, Inc.		4,897	101
First Financial Corp.		2,207	100	MGIC Investment Corp. (Æ)		11,749	166
First Horizon National Corp.		30,567	611	Midland States Bancorp, Inc.		1,992	65
First Industrial Realty Trust, Inc. (ö)		4,185	132	Morningstar, Inc.		5,518	535
First Internet Bancorp		966	37	National Bankshares, Inc.		2,227	101
First Merchants Corp.		1,930	81	National General Holdings Corp.		12,391	243
First Midwest Bancorp, Inc.		4,888	117	National Health Investors, Inc. (ö)		1,054	79
FNB Corp.		181,444	2,509	National Western Life Group, Inc. Class A		375	124
Four Corners Property Trust, Inc. (ö)		3,841	99	NMI Holdings, Inc. Class A(Æ)		14,089	240
Fulton Financial Corp.		5,790	104	Northrim BanCorp, Inc.		10,971	371
Genworth Financial, Inc. Class A(Æ)		22,972	71	Northwest Bancshares, Inc.		7,167	120
GEO Group, Inc. (The)(ö)		4,723	111	OFG Bancorp(Ñ)		110,862	1,042
German American Bancorp, Inc.		10,335	365	Old National Bancorp		24,936	435
Glacier Bancorp, Inc.		2,702	106	OM Asset Management PLC		44,596	747
Gladstone Commercial Corp. (ö)		3,218	68	Opus Bank(Æ)		2,713	74
Gramercy Property Trust(ö)		7,361	196	Owens Realty Mortgage, Inc. (ö)		4,603	74
Great Western Bancorp, Inc.		26,082	1,038	Pacific Premier Bancorp, Inc. (Æ)		9,833	393
Green Dot Corp. Class A(Æ)		13,939	840	PCSB Financial Corp. (Æ)		16,808	320
Greenhill & Co. , Inc.		15,939	311	Pebblebrook Hotel Trust(ö)		3,665	136
Guaranty Bancorp		2,270	63	People's Utah Bancorp		2,792	85
Hamilton Lane, Inc. Class A		1,895	67	Potlatch Corp. (ö)		11,418	570
Hancock Holding Co.		2,823	140	Preferred Bank		9,079	534
Hanover Insurance Group, Inc. (The)		1,795	194	Primerica, Inc.		1,690	172
Health Insurance Innovations, Inc. Class				Prosperity Bancshares, Inc.		16,724	1,172
A(Æ)		4,384	109	PS Business Parks, Inc. (ö)		1,196	150
Healthcare Realty Trust, Inc. (ö)		3,181	102	Pzena Investment Management, Inc. Class A		18,824	201
Heritage Commerce Corp.		2,964	45	QTS Realty Trust, Inc. Class A(ö)		7,762	420
Heritage Financial Corp.		15,868	489	Quality Care Properties, Inc. (Æ)(ö)		7,750	107
Heritage Insurance Holdings, Inc. (Ñ)		4,151	75	Radian Group, Inc.		7,338	151
Hersha Hospitality Trust Class A(ö)		4,231	74	Rayonier, Inc. (ö)		24,960	789
Hilltop Holdings, Inc.		3,867	98	Redwood Trust, Inc. (ö)		5,433	81
Home BancShares, Inc.		30,111	700	Retail Opportunity Investments Corp. (ö)		72,253	1,442
Horace Mann Educators Corp.		5,150	227	Rexford Industrial Realty, Inc. (ö)		4,133	121
Iberiabank Corp.		14,969	1,160	RLI Corp.		1,093	66
Independence Realty Trust, Inc. (ö)		39,827	402	RLJ Lodging Trust(ö)		35,449	779
Independent Bank Corp.		17,510	391	Ryman Hospitality Properties, Inc. (ö)		9,283	641
Infinity Property & Casualty Corp.		1,239	131	Sabra Health Care REIT, Inc. (ö)		3,483	65
InfraREIT, Inc. (ö)		4,269	79	Safety Insurance Group, Inc.		1,267	102
Investment Technology Group, Inc.		2,641	51	Selective Insurance Group, Inc.		2,548	150
Investors Bancorp, Inc.		9,233	128	Seritage Growth Properties(Ñ)(ö)		1,986	80
Invitation Homes, Inc. (ö)		4,620	109	Shore Bancshares, Inc.		4,749	79
iStar, Inc. (Æ)(ö)		6,969	79	South State Corp.		6,311	550
Jack Henry & Associates, Inc.		6,016	704	STAG Industrial, Inc. (ö)		3,648	100
James River Group Holdings, Ltd.		1,979	79	State Auto Financial Corp.		9,330	272
JER Investment Trust, Inc. (Æ)(Š)(Å)		1,771	—	State Bank Financial Corp.		13,719	409
Kearny Financial Corp.		92,965	1,343	Sterling Bancorp		1,557	38
Kemper Corp.		2,000	138	Stewart Information Services Corp.		1,430	60
Kennedy-Wilson Holdings, Inc.		19,407	337	Summit Hotel Properties, Inc. (ö)		5,844	89
Kite Realty Group Trust(ö)		3,642	71	Sunstone Hotel Investors, Inc. (ö)		11,743	194
LaSalle Hotel Properties(ö)		7,603	213	Taubman Centers, Inc. (ö)		9,449	618
LendingTree, Inc. (Æ)		2,562	872	TCF Financial Corp.		28,114	576
Lexington Realty Trust(ö)		9,906	96	Terreno Realty Corp. (ö)		3,173	111

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 33

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
Texas Capital Bancshares, Inc. (Æ)		2,164	192	CryoLife, Inc. (Æ)		2,316	44
Third Point Reinsurance, Ltd. (Æ)		3,826	56	Cutera, Inc. (Æ)		2,163	98
TriState Capital Holdings, Inc. (Æ)		1,557	36	Encompass Health Corp. (Æ)		23,213	1,147
TrustCo Bank Corp.		12,289	113	Ensign Group, Inc. (The)		31,959	709
Trustmark Corp.		2,976	95	Epizyme, Inc. (Æ)		5,227	66
UMB Financial Corp.		7,505	540	Esperion Therapeutics, Inc. (Æ)		1,758	116
UMH Properties, Inc. (ö)		7,201	107	Exactech, Inc. (Æ)		6,013	297
Umpqua Holdings Corp.		92,885	1,933	Flexion Therapeutics, Inc. (Æ)		3,390	85
Union Bankshares Corp.		2,655	96	GenMark Diagnostics, Inc. (Æ)		7,815	33
United Bankshares, Inc.		3,296	115	Glaukos Corp. (Æ)(Ñ)		2,851	73
United Community Banks, Inc.		3,137	88	Global Blood Therapeutics, Inc. (Æ)		2,491	98
Universal Insurance Holdings, Inc.		2,883	79	Globus Medical, Inc. Class A(Æ)		6,922	284
Urban Edge Properties(ö)		3,864	98	Halozyme Therapeutics, Inc. (Æ)		25,151	510
Valley National Bancorp		9,512	107	Halyard Health, Inc. (Æ)		2,525	117
Veritex Holdings, Inc. (Æ)		1,215	34	HealthEquity, Inc. (Æ)		1,799	84
Waddell & Reed Financial, Inc. Class A		3,979	89	Healthways, Inc. (Æ)		6,914	253
Washington Federal, Inc.		3,963	136	Heska Corp. (Æ)		1,037	83
Washington Real Estate Investment Trust(ö)		3,281	102	ICU Medical, Inc. (Æ)		977	211
WesBanco, Inc.		11,809	480	ImmunoGen, Inc. (Æ)		6,459	41
Westamerica Bancorporation		8,574	511	Inogen, Inc. (Æ)		3,141	374
Wintrust Financial Corp.		5,832	480	Inovio Pharmaceuticals, Inc. (Æ)		13,249	55
WisdomTree Investments, Inc.		9,197	115	Insulet Corp. (Æ)		1,860	128
Xenia Hotels & Resorts, Inc. (ö)		5,994	129	Integra LifeSciences Holdings Corp. (Æ)		8,237	394
			57,714	Intersect ENT, Inc. (Æ)		4,338	141
				iRhythm Technologies, Inc. (Æ)		576	32
Health Care - 11.5%				Ironwood Pharmaceuticals, Inc. Class A(Æ)		9,834	147
Abaxis, Inc.		10,510	520	K2M Group Holdings, Inc. (Æ)		3,769	68
Acadia Healthcare Co. , Inc. (Æ)		16,749	547	Lannett Co. , Inc. (Æ)(Ñ)		55,488	1,288
Acceleron Pharma, Inc. (Æ)		1,874	80	LeMaitre Vascular, Inc.		2,307	73
Aclaris Therapeutics, Inc. (Æ)		2,811	69	Ligand Pharmaceuticals, Inc. Class B(Æ)		6,102	836
Adamas Pharmaceuticals, Inc. (Æ)(Ñ)		3,663	124	LivaNova PLC(Æ)		603	48
Addus HomeCare Corp. (Æ)		8,515	296	Luminex Corp.		3,297	65
Agile Therapeutics, Inc. (Æ)		17,938	48	Magellan Health, Inc. (Æ)		1,390	134
Aimmune Therapeutics, Inc. (Æ)		3,781	143	Masimo Corp. (Æ)		1,661	141
Alkermes PLC(Æ)		7,549	413	Medidata Solutions, Inc. (Æ)		1,213	77
Allscripts Healthcare Solutions, Inc. (Æ)		32,862	478	Merit Medical Systems, Inc. (Æ)		20,898	903
AMAG Pharmaceuticals, Inc. (Æ)		35,463	470	Molina Healthcare, Inc. (Æ)		4,234	325
Amicus Therapeutics, Inc. (Æ)		10,759	155	National HealthCare Corp.		1,054	64
AMN Healthcare Services, Inc. (Æ)		11,897	586	National Research Corp. Class A		2,114	79
Analogic Corp.		890	75	Nektar Therapeutics(Æ)		3,857	230
Anika Therapeutics, Inc. (Æ)		1,260	68	Neogen Corp. (Æ)		2,087	172
Apollo Endosurgery, Inc. (Æ)		19,458	109	NeoGenomics, Inc. (Æ)		137,563	1,220
Array BioPharma, Inc. (Æ)		8,924	114	Neos Therapeutics, Inc. (Æ)		27,300	278
Atrion Corp.		201	127	Nevro Corp. (Æ)		648	45
AxoGen, Inc. (Æ)		14,378	407	NxStage Medical, Inc. (Æ)		3,121	76
BioTelemetry, Inc. (Æ)		10,370	310	Omnicell, Inc. (Æ)		10,660	517
Bioverativ, Inc. (Æ)		9,163	494	OraSure Technologies, Inc. (Æ)		5,172	98
Cambrex Corp. (Æ)		2,257	108	Owens & Minor, Inc.		2,384	45
Capital Senior Living Corp. (Æ)		26,584	359	Oxford Immunotec Global PLC(Æ)		4,053	57
Cara Therapeutics, Inc. (Æ)(Ñ)		4,460	55	Pacira Pharmaceuticals, Inc. (Æ)		1,243	57
Catalent, Inc. (Æ)		3,903	160	Paratek Pharmaceuticals, Inc. (Æ)		7,116	127
Celldex Therapeutics, Inc. (Æ)		28,808	82	Penumbra, Inc. (Æ)		4,134	389
Chemed Corp.		3,848	935	PRA Health Sciences, Inc. (Æ)		7,512	684
Clearside Biomedical, Inc. (Æ)		6,335	44	Prestige Brands Holdings, Inc. (Æ)		11,986	532
Clovis Oncology, Inc. (Æ)		2,402	163	Prothena Corp. PLC(Æ)		2,745	103
Corcept Therapeutics, Inc. (Æ)		23,738	429	Puma Biotechnology, Inc. (Æ)		1,499	148
CorVel Corp. (Æ)		4,578	242	Quality Systems, Inc. (Æ)		3,762	51
Cross Country Healthcare, Inc. (Æ)		17,251	220	Radius Health, Inc. (Æ)(Ñ)		2,533	80

See accompanying notes which are an integral part of the financial statements.

34 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
Repligen Corp. (Æ)		3,781	137	Owens-Illinois, Inc. (Æ)		15,677	348
Sage Therapeutics, Inc. (Æ)		2,240	369	Patrick Industries, Inc. (Æ)		2,969	206
Sangamo BioSciences, Inc. (Æ)		7,901	130	PGT Innovations, Inc. (Æ)		14,934	252
Sarepta Therapeutics, Inc. (Æ)		3,189	177	PH Glatfelter Co.		2,242	48
SeaSpine Holdings Corp. (Æ)		18,909	191	Platform Specialty Products Corp. (Æ)		54,364	539
Select Medical Holdings Corp. (Æ)		9,486	167	Quaker Chemical Corp.		3,597	542
Spark Therapeutics, Inc. (Æ)		1,663	86	Quanex Building Products Corp.		8,527	200
Steris PLC		6,378	558	Rayonier Advanced Materials, Inc.		16,372	335
Supernus Pharmaceuticals, Inc. (Æ)		21,432	854	RBC Bearings, Inc. (Æ)		2,104	266
Surmodics, Inc. (Æ)		3,820	107	Silgan Holdings, Inc.		31,236	918
Syneos Health, Inc. (Æ)		1,932	84	Simpson Manufacturing Co. , Inc.		2,808	161
Tactile Systems Technology, Inc. (Æ)		15,993	463	SiteOne Landscape Supply, Inc. (Æ)		4,353	334
Teladoc, Inc. (Æ)		2,310	81	Summit Materials, Inc. Class A(Æ)		13,929	438
TG Therapeutics, Inc. (Æ)(Ñ)		9,743	80	Triton International, Ltd.		10,184	381
Triple-S Management Corp. Class B(Æ)		3,878	96	Tronox, Ltd. Class A		7,547	155
Ultragenyx Pharmaceutical, Inc. (Æ)		2,939	136	United States Steel Corp.		27,346	962
US Physical Therapy, Inc.		5,877	424	US Concrete, Inc. (Æ)		12,506	1,046
Utah Medical Products, Inc.		3,677	299	Venator Materials PLC(Æ)		3,015	67
Varex Imaging Corp. (Æ)		33,340	1,340	Versum Materials, Inc.		23,723	898
VBI Vaccines, Inc. (Æ)		28,482	122				22,344
ViewRay, Inc. (Æ)(Ñ)		22,607	209
Voyager Therapeutics, Inc. (Æ)		6,326	105	Producer Durables - 12.9%
Wright Medical Group NV(Æ)		2,243	50	ACCO Brands Corp. (Æ)		100,234	1,223
Xencor, Inc. (Æ)		4,333	95	Advanced Energy Industries, Inc. (Æ)		4,737	320
			29,420	AECOM(Æ)		10,511	390
				Aerojet Rocketdyne Holdings, Inc. (Æ)		1,758	55
Materials and Processing - 8.8%				Air Transport Services Group, Inc. (Æ)		11,789	273
A Schulman, Inc.		19,513	727	Allied Motion Technologies, Inc.		10,591	350
Advanced Drainage Systems, Inc.		30,396	725	Atlas Air Worldwide Holdings, Inc. (Æ)		14,007	822
Apogee Enterprises, Inc.		27,173	1,244	AZZ, Inc.		2,416	123
Armstrong Flooring, Inc. (Æ)		33,427	566	Badger Meter, Inc.		5,779	276
Armstrong World Industries, Inc. (Æ)		14,240	862	BMX Technologies, Inc. Class W(Æ)		18,128	1,097
Beacon Roofing Supply, Inc. (Æ)		629	40	Brink's Co. (The)		10,097	795
Bemis Co. , Inc.		15,286	731	Casella Waste Systems, Inc. Class A(Æ)		4,376	101
Builders FirstSource, Inc. (Æ)		16,213	353	Columbus McKinnon Corp.		6,125	245
Carpenter Technology Corp.		5,400	275	Costamare, Inc.		5,006	29
Comfort Systems USA, Inc.		15,383	671	Covanta Holding Corp.		86,538	1,461
Commercial Metals Co.		34,755	741	Covenant Transportation Group, Inc. Class
Compass Minerals International, Inc. (Ñ)		16,909	1,222	A(Æ)		2,408	69
Culp, Inc.		2,452	82	CPI Aerostructures, Inc. (Æ)		1,351	12
Emerge Energy Services, LP(Æ)		4,757	34	CRA International, Inc.		6,735	303
Ferroglobe PLC(Æ)		61,033	989	Deluxe Corp.		7,164	550
FutureFuel Corp.		7,489	106	Ducommun, Inc. (Æ)		2,132	61
Global Brass & Copper Holdings, Inc.		1,209	40	DXP Enterprises, Inc. (Æ)		2,405	71
Hi-Crush Partners, LP		5,444	58	Dycom Industries, Inc. (Æ)		1,702	190
Ingevity Corp. (Æ)		6,179	435	Ennis, Inc.		3,335	69
Installed Building Products, Inc. (Æ)		9,401	714	ExlService Holdings, Inc. (Æ)		1,022	62
Insteel Industries, Inc.		16,902	479	Exponent, Inc.		7,357	523
Interface, Inc. Class A		22,582	568	Flir Systems, Inc.		6,581	307
ITT, Inc.		14,730	786	Forrester Research, Inc.		1,122	50
JELD-WEN Holding, Inc. (Æ)		670	26	Forward Air Corp.		4,935	283
KMG Chemicals, Inc.		715	47	General Cable Corp.		20,531	608
Koppers Holdings, Inc. (Æ)		1,690	86	GP Strategies Corp. (Æ)		9,878	229
LB Foster Co. Class A(Æ)		10,551	286	Granite Construction, Inc.		3,348	212
LSB Industries, Inc. (Æ)		41,829	366	Great Lakes Dredge & Dock Corp. (Æ)		34,613	187
Neenah Paper, Inc.		6,224	564	Greenbrier Cos. , Inc. (Ñ)		5,281	281
NewMarket Corp.		877	349	H&E Equipment Services, Inc.		1,297	53
NN, Inc.		2,758	76	Harsco Corp. (Æ)		3,526	66

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 35

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
		Principal	Fair			Principal	Fair
	Amount ($) or		Value		Amount ($) or		Value
		Shares	$			Shares	$
Healthcare Services Group, Inc.		11,882	626	Technology - 12.5%
HEICO Corp.		11,419	1,077	Acxiom Corp. (Æ)		15,513	428
HNI Corp.		18,633	719	Adesto Technologies Corp. (Æ)		23,543	152
Hudson Technologies, Inc. (Æ)		64,515	392	Alarm. com Holdings, Inc. (Æ)		4,926	186
Information Services Group, Inc. (Æ)		53,611	224	Anixter International, Inc. (Æ)		2,044	155
InnerWorkings, Inc. (Æ)		5,634	57	Apptio, Inc. Class A(Æ)		13,582	319
JetBlue Airways Corp. (Æ)		30,301	677	Aspen Technology, Inc. (Æ)		1,647	109
John Bean Technologies Corp.		3,716	412	Asure Software, Inc. (Æ)(Ñ)		15,865	224
KBR, Inc.		53,424	1,059	AVX Corp.		5,301	92
Kimball International, Inc. Class B		11,881	222	Benchmark Electronics, Inc. (Æ)		5,130	149
KLX, Inc. (Æ)		5,746	392	Blackline, Inc. (Æ)		8,190	269
Knight-Swift Transportation Holdings, Inc.				Blucora, Inc. (Æ)		2,536	56
(Æ)		16,806	735	CACI International, Inc. Class A(Æ)		852	113
Kornit Digital, Ltd. (Æ)		4,295	69	CalAmp Corp. (Æ)		41,171	882
Littelfuse, Inc.		2,818	557	Callidus Software, Inc. (Æ)		28,307	811
Lydall, Inc. (Æ)		2,699	137	Carbonite, Inc. (Æ)		35,719	897
Manitowoc Co. , Inc. (The)(Æ)		12,929	509	Cars. com, Inc. (Æ)(Ñ)		17,575	507
Marten Transport, Ltd.		9,600	195	CEVA, Inc. (Æ)		5,600	258
MasTec, Inc. (Æ)		18,544	908	Cirrus Logic, Inc. (Æ)		2,017	105
MAXIMUS, Inc.		5,029	360	Coherent, Inc. (Æ)		1,121	316
McGrath RentCorp		12,403	583	CommerceHub, Inc. (Æ)		17,081	352
Milacron Holdings Corp. (Æ)		2,223	43	Conduent, Inc. (Æ)		47,383	766
Mitek Systems, Inc. (Æ)		13,537	121	Cornerstone OnDemand, Inc. (Æ)		11,519	407
Mobile Mini, Inc.		20,733	715	Coupa Software, Inc. (Æ)		4,364	136
Modine Manufacturing Co. (Æ)		2,179	44	Cypress Semiconductor Corp.		19,356	295
MSC Industrial Direct Co. , Inc. Class A		1,557	150	Diebold Nixdorf, Inc.		44,312	725
NV5 Global, Inc. (Æ)		6,850	371	Diodes, Inc. (Æ)		13,319	382
Old Dominion Freight Line, Inc.		5,745	756	Ellie Mae, Inc. (Æ)		853	76
On Assignment, Inc. (Æ)		11,596	745	EPAM Systems, Inc. (Æ)		877	94
Orion Group Holdings, Inc. (Æ)		15,599	122	Everbridge, Inc. (Æ)		9,131	271
Quanta Services, Inc. (Æ)		9,582	375	Fabrinet(Æ)		3,556	102
Radiant Logistics, Inc. (Æ)		13,199	61	Finisar Corp. (Æ)		38,424	782
Ritchie Bros Auctioneers, Inc. (Ñ)		17,532	525	FireEye, Inc. (Æ)		51,171	727
Ryder System, Inc.		6,299	530	Five9, Inc. (Æ)		64,932	1,616
Saia, Inc. (Æ)		8,937	632	Fusion Telecommunications International,
Schneider National, Inc. Class B(Ñ)		8,766	250	Inc. (Æ)		63,920	240
SkyWest, Inc.		7,172	381	Glu Mobile, Inc. (Æ)		33,337	121
Spartan Motors, Inc.		19,488	307	Groupon, Inc. Class A(Æ)		23,583	120
SPX FLOW, Inc. (Æ)		637	30	GrubHub, Inc. (Æ)		4,957	356
Square, Inc. Class A(Æ)		6,768	235	GSI Group, Inc. (Æ)		2,633	132
Standex International Corp.		5,319	542	GTT Communications, Inc. (Æ)		7,585	356
Steelcase, Inc. Class A		30,572	465	Hortonworks, Inc. (Æ)		3,882	78
Strattec Security Corp.		3,493	152	Insight Enterprises, Inc. (Æ)		4,702	180
Sun Hydraulics Corp.		2,589	167	Integrated Device Technology, Inc. (Æ)		27,645	822
Sykes Enterprises, Inc. (Æ)		3,386	106	InterXion Holding NV(Æ)		1,208	71
TopBuild Corp. (Æ)		2,327	176	Kimball Electronics, Inc. (Æ)		17,853	326
Triumph Group, Inc.		7,572	206	Liberty Expedia Holdings, Inc. Class A(Æ)		3,412	151
Tutor Perini Corp. (Æ)		10,389	263	Liberty Interactive Corp. (Æ)		18,711	1,015
Vishay Precision Group, Inc. (Æ)		3,079	77	LogMeIn, Inc.		3,443	394
WageWorks, Inc. (Æ)		12,318	764	Magnachip Semiconductor Corp. (Æ)(Ñ)		13,352	133
Watts Water Technologies, Inc. Class A		1,778	135	Meet Group, Inc. (Æ)		25,706	72
Welbilt, Inc. (Æ)		13,826	325	Mellanox Technologies, Ltd. (Æ)		5,101	330
WNS Holdings, Ltd. - ADR(Æ)		11,228	451	Mercury Systems, Inc. (Æ)		4,781	246
YRC Worldwide, Inc. (Æ)		51,435	740	Methode Electronics, Inc.		4,184	168
Zebra Technologies Corp. Class A(Æ)		2,789	289	Mimecast, Ltd. (Æ)		20,385	584
			32,907	Mindbody Inc. Class A(Æ)		1,991	61
				MKS Instruments, Inc.		1,421	134
				Model N, Inc. (Æ)		4,627	73

See accompanying notes which are an integral part of the financial statements.

36 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)					Amounts in thousands (except share amounts)
		Principal	Fair				Principal		Fair
	Amount ($) or		Value			Amount ($) or			Value
		Shares	$				Shares		$
MongoDB, Inc. (Æ)		908	27		Idacorp, Inc.		2,252		206
Monolithic Power Systems, Inc.		2,392	269		IDT Corp. Class B		4,396		47
NCR Corp. (Æ)		14,261	485		j2 Global, Inc.		9,735		730
NETGEAR, Inc. (Æ)		3,608	212		MGE Energy, Inc.		1,173		74
NetScout Systems, Inc. (Æ)		3,368	103		Midstates Petroleum Co. , Inc. (Æ)		23,153		384
NIC, Inc.		16,743	278		New Jersey Resources Corp.		4,001		161
Nice, Ltd. - ADR		353	32		Northwest Natural Gas Co.		1,663		99
Nutanix, Inc. Class A(Æ)		8,878	313		NorthWestern Corp.		2,016		120
Oclaro, Inc. (Æ)		6,418	43		NRG Yield, Inc. Class A		31,242		589
Orbotech, Ltd. (Æ)		6,704	337		NRG Yield, Inc. Class C		8,853		167
Paycom Software, Inc. (Æ)		1,907	153		ONE Gas, Inc.		2,727		200
PC Connection, Inc.		4,918	129		Ormat Technologies, Inc.		1,412		90
PDF Solutions, Inc. (Æ)		27,140	426		Otter Tail Corp.		1,774		79
Perficient, Inc. (Æ)		25,024	477		Pattern Energy Group, Inc. Class A		2,134		46
Power Integrations, Inc.		8,042	591		PNM Resources, Inc.		2,407		97
Proofpoint, Inc. (Æ)		5,075	451		Portland General Electric Co.		2,494		114
Q2 Holdings, Inc. (Æ)		5,610	207		Pure Cycle Corp. (Æ)		13,964		117
Quantenna Communications, Inc. (Æ)		5,413	66		Resolute Energy Corp. (Æ)		2,151		68
RADCOM, Ltd. (Æ)		10,892	216		RingCentral, Inc. Class A(Æ)		11,290		546
Rapid7, Inc. (Æ)		3,100	58		South Jersey Industries, Inc.		10,471		327
RealPage, Inc. (Æ)		16,769	743		Southwest Gas Holdings, Inc.		1,881		151
Rogers Corp. (Æ)		2,530	410		Spark Energy, Inc. Class A(Ñ)		4,334		54
Sanmina Corp. (Æ)		5,308	175		Spire, Inc.		2,602		196
Sapiens International Corp. NV		13,728	158		Vistra Energy Corp. (Æ)		34,406		630
ScanSource, Inc. (Æ)		4,699	168		WGL Holdings, Inc.		1,757		151
Science Applications International Corp.		4,911	376		Whiting Petroleum Corp. (Æ)		22,171		587
Semtech Corp. (Æ)		1,487	51						9,907
ShotSpotter, Inc. (Æ)(Ñ)		10,854	152
Super Micro Computer, Inc. (Æ)		29,309	613		Total Common Stocks
Synaptics, Inc. (Æ)		8,571	342
Synchronoss Technologies, Inc. (Æ)		8,018	72		(cost $204,988)				238,136
SYNNEX Corp.		792	108
Tech Data Corp. (Æ)		790	77		Investments in Other Funds - 0.1%
Tyler Technologies, Inc. (Æ)		243	43		Financial Services - 0.1%
USA Technologies, Inc. (Æ)		55,750	544		SPDR S&P Biotech ETF		3,396		288
Varonis Systems, Inc. (Æ)		17,104	830		Total Investments in Other Funds
VeriFone Systems, Inc. (Æ)		75,680	1,340		(cost $285)				288
Vishay Intertechnology, Inc.		9,054	188
Vocera Communications, Inc. (Æ)		8,258	250	Short	-Term Investments - 6.2%
Web. com Group, Inc. (Æ)		2,764	60		U. S. Cash Management Fund(@)		15,785,658	(8)	15,786
Xperi Corp.		58,147	1,419		Total Short-Term Investments
			31,914		(cost $15,787)				15,786
Utilities - 3.9%					Other Securities - 4.3%
Algonquin Power & Utilities Corp. (Ñ)		51,046	570		U. S. Cash Collateral Fund(×)(@)		10,926,795	(8)	10,927
Allete, Inc.		2,235	166		Total Other Securities
American States Water Co.		14,623	847		(cost $10,927)				10,927
Antero Midstream GP LP		6,791	134
Avista Corp.		2,825	145
Black Hills Corp.		1,284	77		Total Investments 104.0%
Boingo Wireless, Inc. (Æ)		41,496	934		(identified cost $231,987)				265,137
California Water Service Group		2,148	97
Chesapeake Utilities Corp.		1,052	83		Other Assets and Liabilities, Net
Cogent Communications Holdings, Inc.		8,127	368	-	(4.0%)				(10,283	)
Comstock Resources, Inc. (Æ)		3,703	31		Net Assets - 100.0%				254,854
Dynegy, Inc. Class A(Æ)		16,075	190
El Paso Electric Co.		2,684	149
Gogo, Inc. (Æ)(Ñ)		7,620	86

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 37

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments, continued — December 31, 2017

Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
									Principal		Cost per		Cost			Fair Value
% of Net Assets				Acquisition				Amount ($)			Unit		(000		)	(000	)
Securities					Date			or shares			$			$		$
0.1%
JER Investment Trust, Inc.				05/27/04					1,771		82.03			145		—
Tandy Leather Factory, Inc.				03/17/14					22,912			8.65		198		176
																176
For a description of restricted securities see note 7 in the Notes to Financial Statements.
Futures Contracts
Amounts in thousands (except contract amounts)
																Value and
																Unrealized
														Appreciation
					Number of				Notional		Expiration			(Depreciation)
					Contracts				Amount			Date				$
Long Positions
Russell 2000 E-Mini Index Futures							108		USD	8,297		03/18				49
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)																49
Presentation of Portfolio Holdings
Amounts in thousands
						Fair Value
									Practical
Portfolio Summary		Level 1		Level 2		Level 3			Expedient (a)			Total		% of Net Assets
Common Stocks
Consumer Discretionary	$	37,343	$	—	$			—	$	—	$		37,343			14.7
Consumer Staples		10,180		—				—		—			10,180			4.0
Energy		6,407		—				—		—			6,407			2.5
Financial Services		57,714		—				—		—			57,714			22.6
Health Care		29,420		—				—		—			29,420			11.5
Materials and Processing		22,344		—				—		—			22,344			8.8
Producer Durables		32,907		—				—		—			32,907			12.9
Technology		31,914		—				—		—			31,914			12.5
Utilities		9,907		—				—		—			9,907			3.9
Investments in Other Funds		288		—				—		—			288			0.1
Short-Term Investments		—		—				—		15,786			15,786			6.2
Other Securities		—		—				—		10,927			10,927			4.3
Total Investments		238,424		—				—		26,713		265,137				104.0
Other Assets and Liabilities, Net																(4.0	)
																100.0
Other Financial Instruments
Assets
Futures Contracts		49		—				—		—			49			— *
Total Other Financial Instruments**	$	49	$	—	$			—	$	—	$		49

See accompanying notes which are an integral part of the financial statements.

38 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Schedule of Investments, continued — December 31, 2017

* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 39

Russell Investment Funds
U.S. Small Cap Equity Fund

Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

	Equity
Derivatives not accounted for as hedging instruments	Contracts
Location: Statement of Assets and Liabilities - Assets
Variation margin on futures contracts*	$	49
	Equity
Derivatives not accounted for as hedging instruments	Contracts
Location: Statement of Operations - Net realized gain (loss)
Futures contracts	$	325
Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Futures contracts	$	170

* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

40 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Assets and Derivative Assets
				Gross			Net Amounts
				Amounts				of Assets
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Assets		Assets	Liabilities				Liabilities
Securities on Loan*	Investments, at fair value	$	10,671		$	—    $		10,671
Futures Contracts	Variation margin on futures contracts		198			—		198
Total Financial and Derivative Assets			10,869			—		10,869
Financial and Derivative Assets not subject to a netting agreement			(198	)		—		(198	)
Total Financial and Derivative Assets subject to a netting agreement		$	10,671		$	—    $		10,671

Financial Assets, Derivative Assets, and Collateral Held by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
		of Assets
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty		Liabilities	Instruments			Received^		Net Amount
Barclays	$	823		$	—	$	823		$	—
Citigroup		462			—		462			—
Goldman Sachs		3,448			—		3,448			—
JPMorgan Chase		107			—		107			—
Merrill Lynch		2,001			—		2,001			—
Morgan Stanley		3,587			—		3,587			—
UBS		243			—		243			—
Total	$	10,671		$	—	$	10,671		$	—

*       Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^      Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 41

Russell Investment Funds
U.S. Small Cap Equity Fund


Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	231,987
Investments, at fair value(*)(>)		265,137
Cash (restricted)(a)		49
Receivables:
Dividends and interest		215
Dividends from affiliated funds		18
Investments sold		2,497
Fund shares sold		4
Variation margin on futures contracts		198
Total assets		268,118
Liabilities
Payables:
Investments purchased		2,043
Fund shares redeemed		17
Accrued fees to affiliates		207
Other accrued expenses		70
Payable upon return of securities loaned		10,927
Total liabilities		13,264
Net Assets	$	254,854

See accompanying notes which are an integral part of the financial statements.

42 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Statement of Assets and Liabilities, continued — December 31, 2017

Amounts in thousands
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	257
Accumulated net realized gain (loss)		16,682
Unrealized appreciation (depreciation) on:
Investments		33,151
Investments in affiliated funds		(1	)
Futures contracts		49
Shares of beneficial interest		155
Additional paid-in capital		204,561
Net Assets	$	254,854
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	16.40
Net assets	$	254,853,785
Shares outstanding ($. 01 par value)		15,538,321
Amounts in thousands
(*)      Securities on loan included in investments	$	10,671
(>)     Investments in affiliates, U. S. Cash Management Fund and U. S. Cash Collateral Fund	$	26,713
(a)     Cash Collateral for Futures	$	49
(#) Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 43

Russell Investment Funds
U.S. Small Cap Equity Fund

Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Dividends	$	2,512
Dividends from affiliated funds		126
Interest		1
Securities lending income (net)		121
Securities lending income from affiliated funds (net)		174
Total investment income		2,934
Expenses
Advisory fees		2,194
Administrative fees		122
Custodian fees		60
Transfer agent fees		11
Professional fees		67
Trustees’ fees		6
Printing fees		34
Miscellaneous		16
Total expenses		2,510
Net investment income (loss)		424
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		37,164
Investments in affiliated funds		1
Futures contracts		325
Net realized gain (loss)		37,490
Net change in unrealized appreciation (depreciation) on:
Investments		(2,184	)
Investments in affiliated funds		(2	)
Futures contracts		170
Net change in unrealized appreciation (depreciation)		(2,016	)
Net realized and unrealized gain (loss)		35,474
Net Increase (Decrease) in Net Assets from Operations	$	35,898

See accompanying notes which are an integral part of the financial statements.

44 U.S. Small Cap Equity Fund

Russell Investment Funds
U.S. Small Cap Equity Fund

Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	424		$	1,610
Net realized gain (loss)		37,490			3,178
Net change in unrealized appreciation (depreciation)		(2,016	)		32,497
Net increase (decrease) in net assets from operations		35,898			37,285
Distributions
From net investment income		(428	)		(1,537	)
From net realized gain		(16,588	)		(116	)
From return of capital		—			(219	)
Net decrease in net assets from distributions		(17,016	)		(1,872	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		7,257			(24,761	)
Total Net Increase (Decrease) in Net Assets		26,139			10,652
Net Assets
Beginning of period		228,715			218,063
End of period	$	254,854		$	228,715
Undistributed (overdistributed) net investment income included in net assets	$	257		$	261

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	1,771		$	27,847		497		$	6,506
Proceeds from reinvestment of distributions	1,034			17,015		137			1,872
Payments for shares redeemed	(2,300	)		(37,605	)	(2,463	)		(33,139	)
Total increase (decrease)	505		$	7,257		(1,829	)	$	(24,761	)

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 45

Russell Investment Funds
U.S. Small Cap Equity Fund

Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

			$
		$	Net	$		$		$		$
	Net Asset Value,		Investment	Net Realized		Total from		Distributions		Distributions		$
	Beginning of		Income	and Unrealized		Investment		from Net		from Net		Return of
		Period	(Loss)(a)(b)	Gain (Loss)		Operations		Investment Income		Realized Gain		Capital
December 31, 2017		15.21	. 03	2.33		2.36		(. 03	)	(1.14	)	—
December 31, 2016		12.93	. 10	2.30		2.40		(. 10	)	(. 01	)	(. 01	)
December 31, 2015		15.51	. 09	(1.19	)	(1.10	)	(. 10	)	(1.38	)	—
December 31, 2014		16.88	. 06	. 18		. 24		(. 04	)	(1.57	)	—
December 31, 2013		13.02	. 08	5.11		5.19		(. 07	)	(1.26	)	—

See accompanying notes which are an integral part of the financial statements.

46 U.S. Small Cap Equity Fund

								%		%	%
			$			$		Ratio of Expenses	Ratio of Expenses		Ratio of Net
			Net Asset Value,	%		Net Assets,		to Average	to Average		Investment Income	%
	$		End of	Total		End of Period		Net Assets,	Net Assets,		to Average	Portfolio
Total Distributions			Period	Return(d)		(000	)	Gross(e)	Net(b)(e)		Net Assets(b)	Turnover Rate
	(1.17	)	16.40	15.48		254,854		1.03		1.03	. 17	135
	(. 12	)	15.21	18.66		228,715		1.03		1.03	. 76	106
	(1.48	)	12.93	(7.19	)	218,063		1.06		1.04	. 61	138
	(1.61	)	15.51	1.56		253,803		1.06		1.01	. 35	80
	(1.33	)	16.88	40.00		237,828		1.05		1.00	. 50	77

See accompanying notes which are an integral part of the financial statements.

U.S. Small Cap Equity Fund 47

Russell Investment Funds
U.S. Small Cap Equity Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:
Advisory fees	$	195,067
Administration fees		10,837
Transfer agent fees		954
Trustee fees		441
	$	207,299

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

		Fair Value,								Change in
	Beginning of					Realized Gain				Unrealized	Fair Value, End				Income	Capital Gains
		Period		Purchases		Sales		(Loss)		Gain (Loss)	of Period		Distributions			Distributions
U. S. Cash Management Fund	$	9,567	$	72,210	$	65,990	$	1	$	(2)	$	15,786		$	126		$	—
U. S. Cash Collateral Fund		12,596		91,586		93,255		—		—		10,927			174			—
	$	22,163	$	163,796	$	159,245	$	1	$	(2)	$	26,713		$	300		$	—

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	233,103,420
Unrealized Appreciation	$	37,175,675
Unrealized Depreciation		(5,142,554	)
Net Unrealized Appreciation (Depreciation)	$	32,033,121
Undistributed Ordinary Income	$	4,473,324
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	13,630,281
Tax Composition of Distributions
Ordinary Income	$	5,444,863
Long-Term Capital Gains	$	11,571,044

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent book-tax differences.  Book-tax
differences are primarily due to foreign currency gains and losses, reclassifications of dividends, differences in treatment of income
from swaps, net operating losses, investments in partnerships, investments in passive foreign investment companies (PFICs), tax
straddle transaction, use of tax equalization and foreign capital gains taxes.  These adjustments have no impact on the net assets. At
December 31, 2017, there were no adjustments to the Statement of Assets and Liabilities.

See accompanying notes which are an integral part of the financial statements.

48 U.S. Small Cap Equity Fund

Russell Investment Funds
International Developed Markets Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

International Developed Markets Fund			Russell Developed ex-U. S. Large Cap® Index Net**
	Total			Total
	Return			Return
1 Year	24.98	%	1 Year	24.85	%
5 Years	8.02	%§	5 Years	7.80	%§
10 Years	2.22	%§	10 Years	2.14	%§
			International Developed Markets Linked Benchmark ***
				Total
				Return
			1 Year	24.85	%
			5 Years	7.80	%§
			10 Years	1.82	%§

International Developed Markets Fund 49

Russell Investment Funds
International Developed Markets Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The International Developed Markets Fund (the “Fund”) employs	fiscal year followed by a modest outperformance of value factor
a multi-manager approach whereby portions of the Fund are	as investors chased cheaper, cyclical stocks and stocks with high
allocated to different money manager strategies. Fund assets not	earnings expectations. The Fund’s overweight to momentum had
allocated to money managers are managed by Russell Investment	a favorable impact during the period.
Management, LLC (“RIM”), the Fund’s advisor. RIM may change
the allocation of the Fund’s assets among money managers at	How did the investment strategies and techniques employed
any time. An exemptive order from the Securities and Exchange	by the Fund and its money managers affect its benchmark-
Commission (“SEC”) permits RIM to engage or terminate a money	relative performance?
manager at any time, subject to approval by the Fund’s Board,	The Fund outperformed its benchmark for the one-year period
without a shareholder vote. Pursuant to the terms of the exemptive	ending December 31, 2017. The Fund’s ex-benchmark allocation
order, the Fund is required to notify its shareholders within 90	to emerging markets added significant value over the period,
days of when a money manager begins providing services. As of	while the Fund’s dynamic value orientation marginally held back
December 31, 2017, the Fund had five money managers.	gains.
What is the Fund’s investment objective?	The Fund employs discretionary and non-discretionary money
The Fund seeks to provide long term capital growth.	managers. The Fund’s discretionary money managers select the
	individual portfolio securities for the assets assigned to them.
How did the Fund perform relative to its benchmark for the	The Fund’s non-discretionary money managers provide a model
fiscal year ended December 31, 2017?	portfolio to RIM representing their investment recommendations,
For the fiscal year ended December 31, 2017, the Fund gained	based upon which RIM purchases and sells securities for the
24.98%. This is compared to the Fund’s benchmark, the Russell	Fund. Fund assets not allocated to discretionary money managers
Developed ex-U. S. Large Cap® Index (Net), which gained 24.85%	include assets managed by RIM based upon model portfolios
during the same period. The Fund’s performance includes	provided by non-discretionary money managers, the Fund’s cash
operating expenses, whereas index returns are unmanaged and	balances and assets which may be managed directly by RIM to
do not include expenses of any kind.	effect the Fund’s investment strategies and/or to actively manage
	the Fund’s overall exposures by investing in securities or other
For the fiscal year ended December 31, 2017, the Morningstar®	instruments that RIM believes will achieve the desired risk/
Insurance Foreign Large Blend Category, a group of funds that	return profile for the Fund.
Morningstar considers to have investment strategies similar to
those of the Fund, gained 25.53%. This result serves as a peer	With respect to certain of the Fund’s money managers, GQG
comparison and is expressed net of operating expenses.	Partners, LLC (“GQG”) was the top performing manager during
	the portion of the fiscal year in which they were a manager in the
How did the market conditions described in the Market	Fund and outperformed the Fund’s benchmark. Stock selection
Summary report affect the Fund’s performance?	was one of the key drivers of excess returns. The manager’s
Emerging markets and Asia ex-Japan were the stand out non-U. S.	orientation towards higher quality stocks (as measured by lower
markets over the fiscal year, as improving economic fundamentals	leverage) was also additive.
along with a weaker U. S. dollar were tailwinds. Conversely, the	Numeric Investors LLC (“Numeric”) faced headwinds and was
UK, Europe ex-UK and Canada were the biggest laggards. The	the weakest performing manager for the period. The manager’s
Fund’s ex-benchmark allocation to emerging markets significantly	overweight to value detracted during the period.
added value over the period.
	RIM manages a multi-factor positioning strategy that aims to
In terms of sector returns within the Index for the fiscal year,	increase the Fund’s value exposure while moderating volatility
sectors with high growth expectations such as technology,	exposure and expressing RIM’s total preferred positioning across
industrials and materials were rewarded during the period while	multiple factors and sectors. The strategy uses the output from a
the more defensive sectors such as consumer staples, utilities	quantitative model to purchase a stock portfolio expressing these
and health care suffered. Energy stocks also underperformed as	views. The positioning strategy’s benchmark-relative performance
commodity prices continued to face pressure from excess supply.	was modestly negative for the period, as the strategy’s overweight
The Fund’s overweight to technology contributed positively,	to value and underweight to volatility detracted.
but was partly offset by a modest overweight to energy and an
underweight to materials.	In addition, RIM utilized equity futures and currency forward
	contracts in order to position the portfolio to meet RIM’s overall
Amid the improving global growth outlook, momentum, growth	preferred positioning with respect to country and currency
and quality factors had the strongest outperformance during the

50 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

exposures. This strategy was marginally unfavorable during the	Money Managers as of December 31,
fiscal year.	2017	Styles
During the period, RIM used index futures contracts to equitize	GQG Partners, LLC	Growth
the Fund’s cash. The decision to equitize cash was beneficial to	Janus Capital Management LLC and Perkins
the Fund’s absolute performance for the fiscal year as the market	Investment Management, LLC	Value
produced a positive absolute return.	Numeric Investors LLC	Market Oriented
	Pzena Investment Management LLC	Value
Describe any changes to the Fund’s structure or the money	Wellington Management Company LLP	Growth
manager line-up.	The views expressed in this report reflect those of the
In March 2017, RIM replaced growth manager MFS Institutional	portfolio managers only through the end of the period
Advisors, Inc. with GQG, and replaced momentum growth	covered by the report. These views do not necessarily
manager William Blair Investment Management, LLC with	represent the views of RIM or any other person in RIM or
Wellington Management Company LLP. RIM also hired Numeric	any other affiliated organization. These views are subject to
to provide an increased emphasis on lower volatility.	change at any time based upon market conditions or other
	events, and RIM disclaims any responsibility to update the
In December 2017, Barrow, Hanley, Mewhinney & Strauss,	views contained herein. These views should not be relied
LLC was terminated following a RIM manager rank downgrade	on as investment advice and, because investment decisions
and replaced with Janus Capital Management LLC and Perkins	for a Russell Investment Funds (“RIF”) Fund are based on
Investment Management, LLC, a defensively oriented value	numerous factors, should not be relied on as an indication
manager.	of investment decisions of any RIF Fund.
The objective of these changes was to improve the Fund's excess
return potential.

* Assumes initial investment on January 1, 2008.

** The Russell Developed ex-U.S. Large Cap^® Index Net is an index which offers investors access to the large-cap segment of the global equity market, excluding
companies assigned to the United States. It is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely
reconstituted annually to accurately reflect the changes in the market over time and is net of tax on dividends from foreign holdings.

*** The International Developed Markets Linked Benchmark provides a means to compare the Fund’s average annual returns to a secondary benchmark that takes
into account historical changes in the Fund’s primary benchmark. The International Developed Markets Linked Benchmark represents the returns of the MSCI
EAFE Index (net of tax on dividends from foreign holdings) through December 31, 2010 and the returns of the Russell Developed ex-U.S. Large Cap^® Index Net
thereafter.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

International Developed Markets Fund 51

Russell Investment Funds
International Developed Markets Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this
administrative fees and other Fund expenses. The Example is	section do not reflect any Insurance Company Separate Account
intended to help you understand your ongoing costs (in dollars)	Policy Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,100.10	$	1,019.71
The information in the table under the heading “Actual	Expenses Paid During Period*	$	5.77	$	5.55
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 1.09%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) .
$1,000 (for example, an $8,600 account value divided by $1,000
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

52 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Common Stocks - 92.0%			Brazil - 0.2%
Australia - 3.1%			BM&FBovespa SA - Bolsa de Valores
AGL Energy, Ltd.	51,996	987	Mercadorias e Futuros(Æ)	110,284	756
Aristocrat Leisure, Ltd.	99,158	1,827
Australia & New Zealand Banking			Canada - 4.0%
Group, Ltd. - ADR	8,664	194	Atco, Ltd. Class I	3,900	140
BHP Billiton, Ltd. - ADR	10,496	242	Bank of Montreal	6,917	553
BlueScope Steel, Ltd.	6,000	72	Bank of Nova Scotia (The)	8,599	555
Brambles, Ltd.	13,498	106	BCE, Inc.	5,200	250
Caltex Australia, Ltd.	5,058	134	Brookfield Asset Management, Inc.
Coca-Cola Amatil, Ltd.	18,700	124	Class A	2,060	90
Commonwealth Bank of Australia - ADR	9,701	606	BRP, Inc.	3,700	137
CSL, Ltd.	10,779	1,186	CAE, Inc.	12,100	225
Dexus Property Group(ö)	25,500	194	Canadian Imperial Bank of Commerce	10,858	1,058
Investa Office Fund(ö)	17,500	62	Canadian Natural Resources, Ltd.	9,541	341
Macquarie Group, Ltd.	28,853	2,238	Canadian Tire Corp. , Ltd. Class A	200	26
Metcash, Ltd.	51,600	125	Cenovus Energy, Inc.	16,238	148
Mirvac Group(ö)	176,300	322	CI Financial Corp.	5,400	128
National Australia Bank, Ltd. - ADR	6,643	153	Constellation Software, Inc.	700	424
Newcrest Mining, Ltd.	47,900	851	Empire Co. , Ltd. Class A	10,500	205
Qantas Airways, Ltd. (Æ)	166,458	653	Encana Corp.	70,593	942
Sandfire Resources NL	23,962	129	Fairfax Financial Holdings, Ltd.	400	213
Santos, Ltd. (Æ)	22,800	97	First Quantum Minerals, Ltd.	54,521	764
Star Entertainment Grp, Ltd. (The)	3,800	18	Genworth MI Canada, Inc.	300	10
Stockland(ö)	109,100	382	George Weston, Ltd.	3,000	261
Telstra Corp. , Ltd.	112,179	317	Great-West Lifeco, Inc.	6,241	174
Treasury Wine Estates, Ltd.	15,000	187	H&R Real Estate Investment Trust(ö)	11,500	195
Vicinity Centres(Æ)(ö)	113,900	242	Intact Financial Corp.	7,318	611
Wesfarmers, Ltd. (Æ)	38,983	1,350	Loblaw Cos. , Ltd.	12,800	695
Westpac Banking Corp.	9,071	221	Magna International, Inc. Class A	3,379	192
Whitehaven Coal, Ltd.	42,400	148	Manulife Financial Corp.	42,096	878
Woolworths Group, Ltd.	21,911	466	Maple Leaf Foods, Inc.	4,400	125
		13,633	Martinrea International, Inc.	800	10
			National Bank of Canada	14,000	699
Austria - 0.4%			New Flyer Industries, Inc.	700	30
Andritz AG	8,879	501	Norbord, Inc.	2,100	71
Erste Group Bank AG(Æ)	5,324	230	Potash Corp. of Saskatchewan, Inc.	30,944	635
Immofinanz AG(Æ)	38,244	98	RioCan Real Estate Investment Trust(ö)	13,500	262
OMV AG	9,111	577	Rogers Communications, Inc. Class B	24,258	1,236
Voestalpine AG	4,135	247	Royal Bank of Canada - GDR	13,612	1,112
		1,653	Saputo, Inc. - ADR	5,500	198
			Smart Real Estate Investment Trust(ö)	3,900	96
Belgium - 1.5%			Stantec, Inc.	3,900	109
Ageas	18,426	899	Stars Group, Inc. (The)(Æ)	6,400	149
Anheuser-Busch InBev SA	10,283	1,147	Sun Life Financial, Inc.	11,324	467
Cie d'Entreprises CFE	818	119	TELUS Corp.	22,600	856
Colruyt SA	2,318	121	Toronto Dominion Bank	37,578	2,201
Groupe Bruxelles Lambert SA	4,225	456	West Fraser Timber Co. , Ltd.	1,300	80
KBC Groep NV	29,152	2,484			17,551
Proximus	6,902	227
Solvay SA	1,464	203	China - 2.9%
UCB SA	11,439	906	Alibaba Group Holding, Ltd. - ADR(Æ)	17,331	2,989
		6,562	JD. com, Inc. - ADR(Æ)	21,290	882
			Lenovo Group, Ltd.	3,194,000	1,803
Bermuda - 0.2%			New Oriental Education & Technology
XL Group, Ltd.	19,709	693	Group - ADR	4,500	423
			Ping An Insurance Group Co. of China,
			Ltd. Class H	140,513	1,462

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 53

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Sunny Optical Technology Group Co. ,			Mercialys SA(ö)	5,811	129
Ltd.	44,884	569	Natixis SA	34,984	276
Tencent Holdings, Ltd.	74,583	3,854	Orange SA - ADR	14,909	259
Weibo Corp. - ADR(Æ)	5,828	603	Peugeot SA	20,052	407
		12,585	Publicis Groupe SA - ADR	31,691	2,153
			Renault SA	4,327	435
Denmark - 1.6%			Rexel SA Class H	104,831	1,901
AP Moller - Maersk A/S Class B	91	159	Safran SA	14,122	1,453
Danske Bank A/S	63,196	2,456	Sanofi - ADR	29,893	2,574
Dfds A/S	1,228	66	Schneider Electric SE(Æ)	28,561	2,422
DSV A/S	11,329	892	SCOR SE - ADR	1,918	77
Genmab A/S(Æ)	3,276	543	Societe Generale SA	8,291	427
GN Store Nord A/S	2,260	73	Television Francaise 1	5,013	74
H Lundbeck A/S	900	46	Thales SA	8,068	869
ISS A/S	730	28	Total SA	62,642	3,457
Novo Nordisk A/S Class B	26,372	1,418	Unibail-Rodamco SE(ö)	820	207
Pandora A/S	2,336	254	Vallourec SA(Æ)(Ñ)	148,982	900
Royal Unibrew A/S	2,180	130	Vicat SA	10,296	813
Scandinavian Tobacco Group A/S(Þ)	37,618	728	Vinci SA	18,900	1,928
Topdanmark A/S	2,551	110	Vivendi SA - ADR	6,246	168
		6,903			37,337
Finland - 0.4%			Germany - 6.7%
Fortum OYJ	10,176	201	Adidas AG	3,177	634
Kesko OYJ Class B	1,502	82	Allianz SE	3,315	759
Neste OYJ	5,943	380	AURELIUS Equity Opportunities SE &
Outokumpu OYJ	23,916	222	Co. KGaA	1,210	83
Stora Enso OYJ Class R	14,342	227	BASF SE	4,272	469
Tikkurila Oyj	11,111	237	Bayer AG	15,478	1,925
UPM-Kymmene OYJ	14,035	436	Bayerische Motoren Werke AG	3,043	316
Valmet OYJ	6,585	130	Beiersdorf AG	3,180	373
		1,915	Commerzbank AG(Æ)	11,290	169
			Continental AG	5,999	1,619
France - 8.6%			Covestro AG(Þ)	13,103	1,347
Air Liquide SA Class A	11,603	1,459	Daimler AG	30,079	2,554
Amundi SA(Þ)	580	49	Deutsche Bank AG	47,693	906
Arkema SA	908	110	Deutsche Boerse AG	34,642	4,015
Atos SE	5,733	835	Deutsche Lufthansa AG	36,010	1,324
AXA SA	13,124	389	Deutsche Telekom AG	19,785	351
bioMerieux	330	30	Deutsche Wohnen SE	4,039	176
BNP Paribas SA	51,067	3,807	Deutz AG	1,900	17
Bouygues SA - ADR	37,956	1,972	Evonik Industries AG	4,920	185
Bureau Veritas SA	16,082	440	GEA Group AG	16,996	815
Carrefour SA	10,021	217	Hannover Rueck SE	1,868	234
Casino Guichard Perrachon SA	460	28	HeidelbergCement AG	15,210	1,647
Cie de Saint-Gobain	5,182	285	Infineon Technologies AG - ADR	35,528	970
Credit Agricole SA	85,255	1,408	Metro AG	7,789	118
Danone SA	15,202	1,274	Muenchener Rueckversicherungs-
Dassault Aviation SA	153	238	Gesellschaft AG in Muenchen	8,856	1,920
Derichebourg SA	11,448	125	Rational AG	206	132
Engie SA	76,564	1,315	Rheinmetall AG	338	43
Faurecia	600	47	RWE AG	6,550	134
Gecina SA(ö)	161	30	SAP SE - ADR(Ñ)	9,902	1,113
Hermes International	1,613	863	SAP SE - ADR	8,299	931
Ipsen SA	469	56	Siemens AG	16,046	2,226
L'Oreal SA	5,736	1,270	Siltronic AG(Æ)	1,423	207
LVMH Moet Hennessy Louis Vuitton			Transportation Components, Inc.	19,180	397
SE - ADR	549	161	Vonovia SE	3,866	191

See accompanying notes which are an integral part of the financial statements.

54 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Wacker Chemie AG	746	145	Teva Pharmaceutical Industries, Ltd.	14,548	276
Zalando SE(Æ)(Þ)	18,790	990			3,051
		29,435
			Italy - 2.8%
Hong Kong - 2.7%			ACEA SpA	6,641	123
AIA Group, Ltd.	223,197	1,904	Assicurazioni Generali SpA	8,521	155
China Mobile, Ltd.	88,000	891	ASTM SpA	1,218	35
CK Asset Holdings, Ltd.	139,351	1,218	Atlantia SpA	3,171	100
CK Hutchison Holdings Ltd	73,000	917	Davide Campari-Milano SpA	109,897	850
CLP Holdings, Ltd.	27,000	276	Enel SpA	691,103	4,247
Hang Seng Bank, Ltd.	48,212	1,194	ENI SpA - ADR	150,406	2,488
Henderson Land Development Co. , Ltd.	35,900	237	FinecoBank Banca Fineco SpA	59,830	612
HKT Trust & HKT, Ltd.	204,000	260	Intesa Sanpaolo SpA	54,724	181
Hongkong Land Holdings, Ltd.	46,200	325	Moncler SpA	16,635	520
Hysan Development Co. , Ltd.	45,000	239	Parmalat SpA	40,579	151
Jardine Matheson Holdings, Ltd.	2,600	158	Snam Rete Gas SpA	36,633	179
Kerry Properties, Ltd.	72,500	326	Telecom Italia SpA(Æ)	774,693	669
Link(ö)	111,500	1,033	Tod's SpA	1,650	121
Melco Crown Entertainment, Ltd. - ADR	33,709	979	UniCredit SpA(Æ)	91,656	1,707
Sun Hung Kai Properties, Ltd.	11,000	183			12,138
Swire Pacific, Ltd. Class A	26,000	241
Swire Properties, Ltd.	29,000	94	Japan - 16.8%
WH Group, Ltd. (Þ)	648,000	730	77 Bank, Ltd. (The)	1,800	45
Wharf Holdings, Ltd. (The)	66,000	228	Advantest Corp.	34,482	639
Wheelock & Co. , Ltd.	42,000	300	Aisin Seiki Co. , Ltd.	3,000	169
Yue Yuen Industrial Holdings, Ltd.	27,000	106	Akatsuki Inc. (Æ)	700	41
		11,839	Alfresa Holdings Corp.	24,800	582
			Alps Electric Co. , Ltd.	20,800	592
India - 0.6%			Asahi Glass Co. , Ltd.	11,800	510
HDFC Bank, Ltd. - ADR	18,034	1,834	Asahi Group Holdings, Ltd.	8,000	397
Infosys, Ltd. - ADR	47,433	769	Asahi Kasei Corp.	18,000	232
		2,603	Astellas Pharma, Inc.	79,600	1,011
			Benesse Holdings, Inc.	1,100	39
Indonesia - 0.2%			BML, Inc.	12,600	314
Bank Central Asia Tbk PT	644,795	1,039	Bridgestone Corp.	20,000	930
			Canon, Inc.	16,000	596
Ireland - 0.3%			Central Japan Railway Co.	1,400	251
Bank of Ireland Group PLC(Æ)	6,600	56	Century Tokyo Leasing Corp.	4,200	203
Medtronic PLC	1,126	91	Coca-Cola Bottlers Japan, Inc.	4,900	179
Ryanair Holdings PLC - ADR(Æ)	4,891	510	Concordia Financial Group, Ltd.	76,800	464
Willis Towers Watson PLC(Æ)	5,106	769	Cosel Co. , Ltd.	28,900	475
		1,426	Credit Saison Co. , Ltd.	17,900	326
			Dai Nippon Printing Co. , Ltd.	18,400	410
Israel - 0.7%			Dai-ichi Life Holdings, Inc.	57,250	1,181
Azrieli Group, Ltd.	2,891	161	Daikin Industries, Ltd.	3,400	403
Bank Hapoalim BM	66,820	492	Daiseki Co. , Ltd.	9,700	270
Bank Leumi Le-Israel BM	129,007	777	Daito Trust Construction Co. , Ltd.	2,400	489
Bezeq The Israeli Telecommunication			Daiwa Securities Group, Inc.	31,000	195
Corp. , Ltd.	229,476	347	Denso Corp.	4,000	240
Check Point Software Technologies, Ltd.			Dip Corp.	900	23
(Æ)	4,400	456	East Japan Railway Co.	1,300	127
Elbit Systems, Ltd.	760	102	Ebara Corp.	19,700	751
Mizrahi Tefahot Bank, Ltd.	7,240	133	Eisai Co. , Ltd.	12,100	685
Nice, Ltd.	1,330	121	FANUC Corp.	3,730	896
Plus500, Ltd.	4,811	59	Fuji Electric Co. , Ltd.	32,500	244
Taro Pharmaceutical Industries, Ltd.			Fujitsu, Ltd.	347,000	2,460
(Æ)(Ñ)	1,211	127	H2O Retailing Corp.	6,800	142
			Haseko Corp.	1,500	23

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 55

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Hazama Ando Corp.	1,200	9	Nippon Telegraph & Telephone Corp.	28,603	1,346
Hitachi Capital Corp.	7,200	181	Nippon Yusen KK	15,200	370
Hitachi, Ltd.	202,500	1,576	Nissan Motor Co. , Ltd.	27,100	270
Hokuhoku Financial Group, Inc.	3,500	55	Nisshinbo Holdings, Inc.	4,900	66
Honda Motor Co. , Ltd.	104,600	3,588	Nomura Holdings, Inc.	86,700	512
Hoya Corp.	10,800	540	NSK, Ltd.	15,400	243
Icom, Inc.	6,300	147	NTT Data Corp.	19,900	236
Iida Group Holdings Co. , Ltd.	35,100	661	NTT DOCOMO, Inc.	54,900	1,297
Inpex Corp.	270,000	3,379	Obayashi Corp.	42,900	519
Isuzu Motors, Ltd.	148,900	2,490	Oji Holdings Corp.	39,000	259
ITOCHU Corp.	51,600	964	OKUMA Corp.	200	13
Jafco Co. , Ltd.	2,400	138	Ono Pharmaceutical Co. , Ltd.	31,200	726
Japan Post Bank Co. , Ltd.	5,800	75	Open House Co. , Ltd.	300	16
Japan Post Holdings Co. , Ltd.	89,900	1,030	Oriental Land Co. , Ltd.	4,700	428
Japan Tobacco, Inc.	23,200	747	ORIX Corp.	41,800	707
JFE Holdings, Inc.	11,600	279	Osaka Gas Co. , Ltd.	8,400	162
JX Holdings, Inc.	229,200	1,481	Penta-Ocean Construction Co. , Ltd.	10,700	80
Kajima Corp.	67,000	644	Pola Orbis Holdings, Inc.	5,200	182
Kansai Electric Power Co. , Inc. (The)	17,000	208	Resona Holdings, Inc.	19,800	118
Kao Corp.	4,000	271	Round One Corp.	1,700	28
Kawasaki Heavy Industries, Ltd.	6,000	210	SBI Holdings, Inc.	12,500	261
KDDI Corp.	30,500	759	Secom Co. , Ltd.	6,000	453
Kitagawa Industries Co. , Ltd.	2,300	31	Secom Joshinetsu Co. , Ltd.	2,700	102
Kobe Bussan Co. , Ltd.	400	15	Seino Holdings Co. , Ltd.	1,600	25
Kobe Steel, Ltd.	15,900	148	Sekisui House, Ltd.	16,200	292
Komatsu, Ltd.	24,900	902	Seven & i Holdings Co. , Ltd.	4,700	195
Konica Minolta, Inc.	11,000	106	Shimamura Co. , Ltd.	900	99
Lawson, Inc.	3,200	213	Shionogi & Co. , Ltd.	1,900	103
Makino Milling Machine Co. , Ltd.	1,000	10	Showa Shell Sekiyu KK	30,900	419
Marubeni Corp.	145,300	1,055	SMC Corp.	2,050	844
Mazda Motor Corp.	16,900	227	SoftBank Group Corp.	15,100	1,193
McDonald's Holdings Co. Japan, Ltd.	6,700	295	Sojitz Corp.	86,100	264
Medipal Holdings Corp.	4,600	90	Sompo Japan Nipponkoa Holdings, Inc.	38,500	1,485
Megmilk Snow Brand Co. , Ltd.	2,600	77	Sony Corp.	67,100	3,013
Mitsubishi Chemical Holdings Corp.	43,800	481	Sumitomo Bakelite Co. , Ltd.	1,000	8
Mitsubishi Corp.	10,600	293	Sumitomo Chemical Co. , Ltd.	25,000	180
Mitsubishi Electric Corp.	6,800	113	Sumitomo Corp.	21,300	361
Mitsubishi Heavy Industries, Ltd.	12,400	463	Sumitomo Electric Industries, Ltd.	6,600	111
Mitsubishi Materials Corp.	5,700	203	Sumitomo Heavy Industries, Ltd.	8,300	352
Mitsubishi Tanabe Pharma Corp.	4,800	99	Sumitomo Metal Mining Co. , Ltd.	5,000	229
Mitsubishi UFJ Financial Group, Inc.	273,600	2,008	Sumitomo Mitsui Financial Group, Inc.	42,900	1,853
Mitsubishi UFJ Lease & Finance Co. ,			Sumitomo Mitsui Trust Holdings, Inc.	5,900	234
Ltd.	31,900	190	Taiheiyo Cement Corp.	5,000	216
Mitsui & Co. , Ltd.	22,900	372	Taisho Pharmaceutical Holdings Co. ,
Mitsui Chemicals, Inc.	1,100	35	Ltd.	3,700	295
Mixi, Inc.	11,800	530	Takashimaya Co. , Ltd.	3,000	32
Mizuho Financial Group, Inc.	162,800	296	Takeda Pharmaceutical Co. , Ltd.	5,000	283
Morinaga Milk Industry Co. , Ltd.	3,200	145	Toho Zinc Co. , Ltd.	900	49
MS&AD Insurance Group Holdings, Inc.	8,800	298	Tokio Marine Holdings, Inc.	5,100	233
Nakanishi, Inc.	1,300	68	Tokyo Electric Power Co. Holdings, Inc.
Nexon Co. , Ltd. (Æ)	1,000	29	(Æ)	208,200	824
NH Foods, Ltd.	15,000	365	Tokyo Electron, Ltd.	100	18
Nidec Corp.	5,900	828	Tomy Co. , Ltd.	4,700	64
Nintendo Co. , Ltd.	2,500	910	Toppan Printing Co. , Ltd.	59,000	533
Nippon Electric Glass Co. , Ltd.	2,500	95	Toray Industries, Inc.	17,000	160
Nippon Express Co. , Ltd.	2,100	139	Toyota Industries Corp.	4,100	264
Nippon Steel & Sumitomo Metal Corp.	4,300	110	Toyota Motor Corp.	23,600	1,511
Nippon Suisan Kaisha, Ltd.	22,400	117	Toyota Tsusho Corp.	6,200	249

See accompanying notes which are an integral part of the financial statements.

56 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Transcosmos, Inc.	11,000	281	Yara International ASA	5,054	231
Ulvac, Inc.	100	6			3,932
United Arrows, Ltd.	600	24
West Japan Railway Co.	9,800	715	Papua New Guinea - 0.0%
Yahoo! Japan Corp.	139,000	637	Oil Search, Ltd.	1,658	10
Yamada Denki Co. , Ltd.	13,400	74
Ya-Man, Ltd.	1,300	22	Portugal - 0.3%
		73,466	Energias de Portugal SA	41,349	143
			Galp Energia SGPS SA Class B	42,990	790
Jersey - 0.1%			Navigator Co. SA (The) - ADR	18,622	95
Randgold Resources, Ltd.	1,350	134	Sonae SGPS SA	103,713	140
Shire PLC - ADR	2,900	150			1,168
		284
			Russia - 0.6%
Luxembourg - 0.1%			Evraz PLC	29,048	133
Aperam SA	2,499	129	Gazprom PJSC - ADR	206,189	909
ArcelorMittal SA(Æ)	7,558	245	Sberbank of Russia PJSC Class T	437,169	1,704
RTL Group SA	1,148	92			2,746
		466
			Singapore - 0.7%
Macao - 0.2%			Genting Singapore PLC	134,900	132
Sands China, Ltd.	185,200	953	Oversea-Chinese Banking Corp. , Ltd.	19,000	176
			Singapore Telecommunications, Ltd.	486,000	1,296
Mexico - 0.4%			Wilmar International, Ltd.	547,900	1,263
America Movil SAB de CV	1,237,728	1,067	Yangzijiang Shipbuilding Holdings, Ltd.	34,300	38
Grupo Televisa SAB - ADR	28,296	528			2,905
		1,595
			South Korea - 2.1%
Netherlands - 3.3%			CLIO Cosmetics Co. , Ltd. (Æ)	6,652	228
Aalberts Industries NV	2,635	134	Grand Korea Leisure Co. , Ltd.	15,725	429
ABN AMRO Group NV(Þ)	29,390	946	Hana Financial Group, Inc.	24,945	1,161
Aegon NV	18,313	117	Hyundai Motor Co.	4,202	612
AerCap Holdings NV(Æ)	4,691	247	KT&G Corp.	3,370	364
ASML Holding NV	3,532	613	POSCO	6,418	1,993
ASR Nederland NV	5,979	246	Samsung Electronics Co. , Ltd.	1,881	4,469
BE Semiconductor Industries NV	1,540	129			9,256
EXOR NV	4,336	266
Heineken NV	14,587	1,520	Spain - 2.0%
ING Groep NV	140,736	2,590	Aena SA(Þ)	4,316	874
Koninklijke Ahold Delhaize NV	29,441	646	Banco Bilbao Vizcaya Argentaria SA
Koninklijke KPN NV	322,088	1,124	- ADR	35,121	299
NN Group NV	30,733	1,328	Banco de Sabadell SA - ADR	133,824	265
Royal Dutch Shell PLC Class A	90,461	3,016	Banco Santander SA - ADR	298,240	1,955
Wolters Kluwer NV	17,420	907	Bankia SA	186,756	891
Yandex NV Class A(Æ)	22,750	745	Cellnex Telecom SA(Þ)	28,791	737
		14,574	Enagas SA	5,810	166
			Ence Energia y Celulosa S. A	6,151	41
Norway - 0.9%			Endesa SA - ADR	12,410	265
Det Norske Oljeselskap ASA	410	10	Gestamp Automocion SA(Æ)(Þ)	14,172	101
DNB ASA	10,775	199	Grupo Catalana Occidente SA	1,840	81
DNO ASA(Æ)	15,656	18	Iberdrola SA	136,607	1,057
Gjensidige Forsikring ASA	5,573	105	Industria de Diseno Textil SA	19,594	682
Grieg Seafood ASA	14,860	130	Repsol SA - ADR	41,651	736
Marine Harvest ASA(Æ)	57,068	967	Telefonica SA - ADR	63,301	617
Norsk Hydro ASA	30,072	227			8,767
Orkla ASA	59,605	632
Salmar ASA Class A	4,421	132	Sweden - 2.2%
Statoil ASA Class N	15,803	338	Assa Abloy AB Class B	37,616	781
Telenor ASA	44,014	943	Atlas Copco AB Class A	21,897	943

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 57

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Atlas Copco AB Class B	540	21	United Kingdom - 14.0%
Boliden AB	5,985	204	3i Group PLC	71,815	885
Electrolux AB	22,900	737	Abcam PLC Class A	2,560	36
Essity Aktiebolag Class B	1,120	32	Antofagasta PLC	25,681	348
ICA Gruppen AB	4,600	167	Aon PLC	12,010	1,609
Nordea Bank AB	65,954	798	AstraZeneca PLC	21,759	1,494
Sandvik AB	9,580	167	Auto Trader Group PLC(Þ)	8,700	41
SAS AB(Æ)	5,400	14	Aviva PLC	202,864	1,386
Skandinaviska Enskilda Banken AB			Babcock International Group PLC	10,320	98
Class A	16,545	194	BAE Systems PLC	156,806	1,206
Swedbank AB Class A	26,986	650	Barclays PLC	450,344	1,228
Swedish Match AB	36,767	1,446	Barratt Developments PLC	51,000	446
Telefonaktiebolaget LM Ericsson Class B	309,020	2,025	BBA Aviation PLC	124,774	589
Telia Co. AB	98,940	440	Berkeley Group Holdings PLC	3,717	210
Volvo AB Class B	57,380	1,068	BHP Billiton PLC	59,116	1,210
		9,687	BP PLC	104,638	738
			BP PLC - ADR	21,795	916
Switzerland - 7.4%			British American Tobacco PLC	57,994	3,914
ABB, Ltd.	88,827	2,375	British Land Co. PLC (The)(ö)	8,800	82
Adecco SA	5,044	386	BT Group PLC	59,592	218
Baloise Holding AG	2,245	350	Diageo PLC	69,778	2,554
Banque Cantonale Vaudoise	94	71	Dialog Semiconductor PLC(Æ)	2,680	83
Barry Callebaut AG(Æ)	97	202	Direct Line Insurance Group PLC	46,335	239
Chocoladefabriken Lindt & Spruengli			Fiat Chrysler Automobiles NV(Æ)	43,303	772
AG	20	122	Foxtons Group PLC	227,450	251
Cie Financiere Richemont SA	14,025	1,270	GlaxoSmithKline PLC - ADR	120,766	2,136
Coca-Cola HBC AG - ADR(Æ)	20,308	661	HSBC Holdings PLC	252,955	2,609
Credit Suisse Group AG(Æ)	107,465	1,912	Imperial Tobacco Group PLC	30,500	1,304
Georg Fischer AG	163	215	International Consolidated Airlines
Glencore PLC(Æ)	56,050	295	Group SA	17,148	149
Julius Baer Group, Ltd. (Æ)	16,269	994	J Sainsbury PLC	516,400	1,682
LafargeHolcim, Ltd. (Æ)	4,129	233	JD Sports Fashion PLC	19,200	87
Lonza Group AG(Æ)	4,820	1,302	John Wood Group PLC	62,976	550
Luzerner Kantonalbank AG	158	75	Just Eat PLC(Æ)	87,541	918
Nestle SA	25,163	2,162	Kingfisher PLC	163,300	744
Novartis AG	47,008	3,975	Land Securities Group PLC(ö)	21,843	297
Oriflame Holding AG	240	10	Legal & General Group PLC	53,111	196
Pargesa Holding SA	560	49	Lloyds Banking Group PLC	1,130,207	1,035
Roche Holding AG	19,311	4,885	London Stock Exchange Group PLC	20,225	1,036
SGS SA	159	414	Lookers PLC	144,915	201
Sika AG	384	3,044	LSL Property Services PLC(Å)	110,360	412
STMicroelectronics NV	24,668	536	Meggitt PLC	84,717	549
Straumann Holding AG	786	555	Michael Page International PLC	64,250	403
Sulzer AG	910	110	National Grid PLC	26,899	316
Swiss Life Holding AG(Æ)	2,777	983	Old Mutual PLC	64,896	203
Swiss Re AG	9,000	842	Persimmon PLC Class A	37,888	1,399
Swisscom AG	507	269	Reckitt Benckiser Group PLC	1,619	151
UBS Group AG(Æ)	185,760	3,413	Redrow PLC	15,556	138
Zurich Insurance Group AG	1,376	418	Rio Tinto PLC - ADR	28,886	1,529
		32,128	Rio Tinto PLC	21,950	1,159
			Royal Bank of Scotland Group PLC(Æ)	991,672	3,699
Taiwan - 0.4%			Royal Dutch Shell PLC Class A	14,887	499
Catcher Technology Co. , Ltd.	72,000	791	Royal Dutch Shell PLC Class B	53,173	1,793
Compal Electronics, Inc.	542,000	387	Royal Mail PLC	82,300	503
Hon Hai Precision Industry Co. , Ltd.	107,153	341	Sage Group PLC (The)	9,300	100
		1,519	Scottish & Southern Energy PLC	5,144	92
			Smith & Nephew PLC	720	12
			SSP Group PLC	4,600	42

See accompanying notes which are an integral part of the financial statements.

58 International Developed Markets Fund

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International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)				Amounts in thousands (except share amounts)
	Principal		Fair		Principal		Fair
	Amount ($)		Value		Amount ($)		Value
	or Shares		$		or Shares		$
Standard Chartered PLC(Æ)	163,189		1,718	Total Warrants & Rights
Standard Life Aberdeen PLC	22,412		132	(cost $10)			10
Stock Spirits Group PLC	100,540		365
Subsea 7 SA	12,081		181
Taylor Wimpey PLC	344,406		959	Short-Term Investments - 4.8%
Tesco PLC	601,371		1,698	United States - 4.8%
				U. S. Cash Management Fund(@)	21,071,392	(8)	21,071
Unilever Travis Perkins NV PLC	133,669	34,040	1,912 2,825	Total Short-Term Investments
Unilever PLC	3,780		209	(cost $21,073)			21,071
Vertu Motors PLC	50,927		35
Vodafone Group PLC	983,166		3,106	Other Securities - 0.1%
Wausau Paper Corp.	59,638		1,081	U. S. Cash Collateral Fund(×)(@)	401,903	(8)	402
Wm Morrison Supermarkets PLC	97,200		288	Total Other Securities
			61,005	(cost $402)			402
United States - 3.6%
Alphabet, Inc. Class C(Æ)	2,891		3,025	Total Investments 98.2%
Brookfield Real Estate Services, Inc. (Å)	18,232		240	(identified cost $385,454)			428,352
Carnival PLC	16,990		1,117
Facebook, Inc. Class A(Æ)	14,948		2,638	Other Assets and Liabilities, Net
Interfor Corp. (Æ)	900		15	- 1.8%			7,958
Lam Research Corp.	7,250		1,335	Net Assets - 100.0%			436,310
MasterCard, Inc. Class A	4,575		692
Mylan NV(Æ)	61,482		2,601
News Corp. Class A	66,832		1,083
NVIDIA Corp.	8,688		1,681
Thomson Reuters Corp.	5,196		227
Visa, Inc. Class A	10,138		1,156
			15,810
Total Common Stocks
(cost $359,699)			401,390
Preferred Stocks - 1.3%
Germany - 1.3%
Bayerische Motoren Werke AG
4.274% (Ÿ)	12,661		1,131
Porsche Automobil Holding SE
1.282% (Ÿ)	3,041		255
Schaeffler AG
3.021% (Ÿ)	14,430		255
Volkswagen AG
1.092% (Ÿ)	19,140		3,813
			5,454
Italy - 0.0%
Telecom Italia SpA
4.432% (Ÿ)	35,003		25
Total Preferred Stocks
(cost $4,270)			5,479
Warrants & Rights - 0.0%
Spain - 0.0%
Repsol SA(Æ)
2018  Rights	21,512		10

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 59

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
					Principal			Cost per		Cost		Fair Value
% of Net Assets	Acquisition				Amount ($)				Unit	(000	)	(000	)
Securities	Date				or shares				$	$		$
0.1%
Brookfield Real Estate Services, Inc.	12/06/17		CAD			18,232			12.51	228		240
LSL Property Services PLC	12/06/17		GBP			110,360			3.88	428		412
												652
For a description of restricted securities see note 7 in the Notes to Financial Statements.
Futures Contracts
Amounts in thousands (except contract amounts)
												Value and
												Unrealized
										Appreciation
		Number of				Notional			Expiration	(Depreciation)
		Contracts				Amount			Date			$
Long Positions
CAC40 Euro Index Futures				32	EUR			1,699	01/18			(31	)
DAX Index Futures				5	EUR			1,614	03/18			(35	)
EURO STOXX 50 Index Futures				250	EUR			8,733	03/18			(252	)
FTSE 100 Index Futures				34	GBP			2,597	03/18			97
Hang Seng Index Futures				3	HKD			4,492	01/18			6
S&P/TSX 60 Index Futures				37	CAD			7,085	03/18			20
SPI 200 Index Futures				8	AUD			1,204	03/18			1
TOPIX Index Futures				209	JPY		3,797,530		03/18			525
Short Positions
Hang Seng Index Futures				25	HKD		37,435		01/18			(47	)
MSCI Emerging Markets Mini Index Futures				239	USD		13,906		03/18			(571	)
S&P 500 E-Mini Index Futures				162	USD		21,676		03/18			(264	)
SPI 200 Index Futures				28	AUD			4,214	03/18			(10	)
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)												(561	)
Foreign Currency Exchange Contracts
Amounts in  thousands
												Unrealized
												Appreciation
	Amount					Amount						(Depreciation)
Counterparty	Sold					Bought			Settlement Date			$
Bank of America	USD		673		AUD		895		03/22/18			25
Bank of America	USD	2,402			AUD		3,195		03/22/18			91
Bank of America	USD	3,002			AUD		4,000		03/22/18			118
Bank of America	USD	3,002			AUD		4,000		03/22/18			119
Bank of America	USD		976		CAD		1,254		03/22/18			22
Bank of America	USD	3,762			CAD		4,830		03/22/18			85
Bank of America	USD	6,230			CAD		8,000		03/22/18			140
Bank of America	USD		637		DKK		4,000		03/22/18			11
Bank of America	USD	2,272			EUR		1,914		03/22/18			36
Bank of America	USD	4,383			EUR		3,700		03/22/18			77
Bank of America	USD	5,188			EUR		4,372		03/22/18			82
Bank of America	USD	1,628			GBP		1,210		03/22/18			10
Bank of America	USD	1,938			GBP		1,440		03/22/18			11
Bank of America	USD	3,093			GBP		2,300		03/22/18			20
Bank of America	USD		458		HKD		3,569		03/22/18			—
Bank of America	USD		513		HKD		4,000		03/22/18			(1	)
Bank of America	USD		914		HKD		7,125		03/22/18			(1	)
Bank of America	USD	5,648			HKD		44,000		03/22/18			(7	)

See accompanying notes which are an integral part of the financial statements.

60 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in  thousands
						Unrealized
						Appreciation
		Amount		Amount		(Depreciation)
Counterparty		Sold		Bought	Settlement Date	$
Bank of America	USD	2,513	JPY	281,650	03/22/18	(3	)
Bank of America	USD	7,751	JPY	868,866	03/22/18	(10	)
Bank of America	USD	446	SEK	3,750	03/22/18	13
Bank of America	AUD	1,938	USD	1,456	03/22/18	(55	)
Bank of America	CAD	650	USD	506	03/22/18	(11	)
Bank of America	CAD	1,000	USD	779	03/22/18	(18	)
Bank of America	CHF	988	USD	1,002	03/22/18	(17	)
Bank of America	DKK	2,275	USD	363	03/22/18	(5	)
Bank of America	EUR	1,500	USD	1,777	03/22/18	(31	)
Bank of America	EUR	1,943	USD	2,305	03/22/18	(36	)
Bank of America	GBP	100	USD	134	03/22/18	(1	)
Bank of America	GBP	378	USD	508	03/22/18	(3	)
Bank of America	HKD	400	USD	51	03/22/18	—
Bank of America	HKD	19,350	USD	2,482	03/22/18	2
Bank of America	JPY	30,000	USD	266	03/22/18	(1	)
Bank of America	JPY	350,000	USD	3,102	03/22/18	(17	)
Bank of America	JPY	380,000	USD	3,390	03/22/18	4
Bank of America	JPY	380,000	USD	3,368	03/22/18	(18	)
Bank of America	NOK	3,800	USD	460	03/22/18	(4	)
Bank of America	NOK	11,000	USD	1,329	03/22/18	(14	)
Bank of America	NZD	4,000	USD	2,731	03/22/18	(101	)
Bank of America	SEK	15,000	USD	1,787	03/22/18	(50	)
BNP Paribas	AUD	1,000	USD	756	03/22/18	(24	)
BNP Paribas	CAD	1,300	USD	1,017	03/22/18	(18	)
BNP Paribas	EUR	5,000	USD	5,940	03/22/18	(88	)
BNP Paribas	GBP	1,300	USD	1,746	03/22/18	(13	)
BNP Paribas	HKD	3,700	USD	474	03/22/18	—
BNP Paribas	JPY	300,000	USD	2,690	03/22/18	17
Brown Brothers Harriman	USD	33	GBP	24	01/03/18	—
Brown Brothers Harriman	USD	44	JPY	4,981	01/05/18	—
Brown Brothers Harriman	AUD	50	USD	38	03/22/18	(1	)
Brown Brothers Harriman	AUD	100	USD	76	03/22/18	(2	)
Brown Brothers Harriman	CAD	100	USD	78	03/22/18	(2	)
Brown Brothers Harriman	CAD	100	USD	78	03/22/18	(1	)
Brown Brothers Harriman	CHF	231	USD	236	01/03/18	(1	)
Brown Brothers Harriman	EUR	300	USD	355	03/22/18	(6	)
Brown Brothers Harriman	EUR	400	USD	475	03/22/18	(8	)
Brown Brothers Harriman	GBP	46	USD	62	01/03/18	—
Brown Brothers Harriman	GBP	100	USD	134	03/22/18	(1	)
Brown Brothers Harriman	HKD	500	USD	64	03/22/18	—
Brown Brothers Harriman	JPY	1,773	USD	16	01/04/18	—
Brown Brothers Harriman	JPY	1,172	USD	10	01/05/18	—
Brown Brothers Harriman	JPY	14,039	USD	124	01/05/18	—
Brown Brothers Harriman	JPY	754	USD	7	01/09/18	—
Brown Brothers Harriman	JPY	40,000	USD	358	03/22/18	2
Citigroup	USD	2,401	AUD	3,195	03/22/18	91
Citigroup	USD	3,761	CAD	4,830	03/22/18	85
Citigroup	USD	2,273	EUR	1,914	03/22/18	34
Citigroup	USD	1,939	GBP	1,440	03/22/18	11
Citigroup	USD	914	HKD	7,125	03/22/18	—
Citigroup	USD	7,760	JPY	868,866	03/22/18	(19	)
Citigroup	USD	446	SEK	3,750	03/22/18	13
Citigroup	AUD	1,938	USD	1,456	03/22/18	(55	)

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 61

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in  thousands
						Unrealized
						Appreciation
		Amount		Amount		(Depreciation)
Counterparty		Sold		Bought	Settlement Date	$
Citigroup	CAD	650	USD	506	03/22/18	(11	)
Citigroup	CHF	988	USD	1,004	03/22/18	(15	)
Citigroup	DKK	2,275	USD	363	03/22/18	(5	)
Citigroup	EUR	1,943	USD	2,307	03/22/18	(35	)
Citigroup	GBP	378	USD	509	03/22/18	(3	)
Citigroup	HKD	19,350	USD	2,482	03/22/18	1
Citigroup	JPY	380,000	USD	3,394	03/22/18	8
Citigroup	NOK	3,800	USD	460	03/22/18	(4	)
Commonwealth Bank of Australia	USD	673	AUD	895	03/22/18	25
Commonwealth Bank of Australia	USD	2,402	AUD	3,195	03/22/18	91
Commonwealth Bank of Australia	USD	977	CAD	1,254	03/22/18	21
Commonwealth Bank of Australia	USD	3,764	CAD	4,830	03/22/18	83
Commonwealth Bank of Australia	USD	2,273	EUR	1,914	03/22/18	34
Commonwealth Bank of Australia	USD	5,192	EUR	4,372	03/22/18	78
Commonwealth Bank of Australia	USD	1,626	GBP	1,210	03/22/18	12
Commonwealth Bank of Australia	USD	1,935	GBP	1,440	03/22/18	14
Commonwealth Bank of Australia	USD	458	HKD	3,569	03/22/18	—
Commonwealth Bank of Australia	USD	914	HKD	7,125	03/22/18	(1	)
Commonwealth Bank of Australia	USD	2,515	JPY	281,650	03/22/18	(6	)
Commonwealth Bank of Australia	USD	7,759	JPY	868,866	03/22/18	(18	)
Commonwealth Bank of Australia	USD	447	SEK	3,750	03/22/18	13
Commonwealth Bank of Australia	AUD	1,938	USD	1,456	03/22/18	(55	)
Commonwealth Bank of Australia	CAD	650	USD	506	03/22/18	(11	)
Commonwealth Bank of Australia	CHF	988	USD	1,004	03/22/18	(16	)
Commonwealth Bank of Australia	DKK	2,275	USD	363	03/22/18	(5	)
Commonwealth Bank of Australia	EUR	1,943	USD	2,307	03/22/18	(35	)
Commonwealth Bank of Australia	GBP	378	USD	508	03/22/18	(4	)
Commonwealth Bank of Australia	HKD	19,350	USD	2,482	03/22/18	2
Commonwealth Bank of Australia	JPY	380,000	USD	3,394	03/22/18	8
Commonwealth Bank of Australia	NOK	3,800	USD	460	03/22/18	(3	)
State Street	USD	19	AUD	24	01/02/18	—
State Street	USD	672	AUD	895	03/22/18	26
State Street	USD	2,401	AUD	3,195	03/22/18	91
State Street	USD	977	CAD	1,254	03/22/18	22
State Street	USD	3,763	CAD	4,830	03/22/18	84
State Street	USD	49	EUR	41	01/02/18	—
State Street	USD	2,273	EUR	1,914	03/22/18	35
State Street	USD	5,191	EUR	4,372	03/22/18	79
State Street	USD	402	GBP	300	03/22/18	4
State Street	USD	1,626	GBP	1,210	03/22/18	12
State Street	USD	1,935	GBP	1,440	03/22/18	15
State Street	USD	458	HKD	3,569	03/22/18	—
State Street	USD	914	HKD	7,125	03/22/18	(1	)
State Street	USD	61	JPY	6,866	01/04/18	—
State Street	USD	2,514	JPY	281,650	03/22/18	(5	)
State Street	USD	7,756	JPY	868,866	03/22/18	(14	)
State Street	USD	6	NOK	50	01/02/18	—
State Street	USD	447	SEK	3,750	03/22/18	13
State Street	USD	25	SGD	33	01/02/18	—
State Street	AUD	50	USD	39	03/22/18	—
State Street	AUD	300	USD	226	03/22/18	(8	)
State Street	AUD	1,938	USD	1,456	03/22/18	(56	)
State Street	CAD	1	USD	1	01/02/18	—

See accompanying notes which are an integral part of the financial statements.

62 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in  thousands
							Unrealized
							Appreciation
		Amount		Amount			(Depreciation)
Counterparty		Sold		Bought		Settlement Date	$
State Street	CAD	80	USD		63	03/22/18	(1	)
State Street	CAD	500	USD		390	03/22/18	(9	)
State Street	CAD	650	USD		506	03/22/18	(11	)
State Street	CHF	988	USD		1,003	03/22/18	(16	)
State Street	DKK	2,275	USD		363	03/22/18	(5	)
State Street	EUR	500	USD		596	03/22/18	(6	)
State Street	EUR	1,300	USD		1,541	03/22/18	(26	)
State Street	EUR	1,943	USD		2,306	03/22/18	(35	)
State Street	GBP	10	USD		13	01/02/18	—
State Street	GBP	378	USD		507	03/22/18	(4	)
State Street	GBP	500	USD		669	03/22/18	(7	)
State Street	HKD	169	USD		22	01/02/18	—
State Street	HKD	1,300	USD		167	03/22/18	—
State Street	HKD	19,350	USD		2,482	03/22/18	1
State Street	JPY	5,810	USD		52	01/05/18	—
State Street	JPY	100,000	USD		886	03/22/18	(5	)
State Street	JPY	380,000	USD		3,392	03/22/18	6
State Street	NOK	3,800	USD		460	03/22/18	(4	)
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts							814

Presentation of Portfolio Holdings
Amounts in thousands
				Fair Value
								Practical
Portfolio Summary		Level 1		Level 2		Level 3		Expedient (a)			Total	% of Net Assets
Common Stocks
Australia	$	—	$	13,633	$		—	$	—	$	13,633		3.1
Austria		—		1,653			—		—		1,653		0.4
Belgium		—		6,562			—		—		6,562		1.5
Bermuda		693		—			—		—		693		0.2
Brazil		—		756			—		—		756		0.2
Canada		17,551		—			—		—		17,551		4.0
China		4,897		7,688			—		—		12,585		2.9
Denmark		—		6,903			—		—		6,903		1.6
Finland		—		1,915			—		—		1,915		0.4
France		—		37,337			—		—		37,337		8.6
Germany		1,113		28,322			—		—		29,435		6.7
Hong Kong		979		10,860			—		—		11,839		2.7
India		2,603		—			—		—		2,603		0.6
Indonesia		—		1,039			—		—		1,039		0.2
Ireland		1,370		56			—		—		1,426		0.3
Israel		583		2,468			—		—		3,051		0.7
Italy		—		12,138			—		—		12,138		2.8
Japan		—		73,466			—		—		73,466		16.8
Jersey		—		284			—		—		284		0.1

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 63

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Presentation of Portfolio Holdings
Amounts in thousands
					Fair Value
										Practical
Portfolio Summary		Level 1			Level 2			Level 3		Expedient (a)			Total		% of Net Assets
Luxembourg		—			466				—		—		466			0.1
Macao		—			953				—		—		953			0.2
Mexico		1,595			—				—		—		1,595			0.4
Netherlands		992			13,582				—		—		14,574			3.3
Norway		—			3,932				—		—		3,932			0.9
Papua New Guinea		—			10				—		—		10			—*
Portugal		—			1,168				—		—		1,168			0.3
Russia		—			2,746				—		—		2,746			0.6
Singapore		—			2,905				—		—		2,905			0.7
South Korea		—			9,256				—		—		9,256			2.1
Spain		—			8,767				—		—		8,767			2.0
Sweden		—			9,687				—		—		9,687			2.2
Switzerland		—			32,128				—		—		32,128			7.4
Taiwan		—			1,519				—		—		1,519			0.4
United Kingdom		4,054			56,951				—		—		61,005			14.0
United States		14,693			1,117				—		—		15,810			3.6
Preferred Stocks		—			5,479				—		—		5,479			1.3
Warrants & Rights		10			—				—		—		10			—*
Short-Term Investments		—			—				—		21,071		21,071			4.8
Other Securities		—			—				—		402		402			0.1
Total Investments		51,133			355,746				—		21,473		428,352			98.2
Other Assets and Liabilities, Net																1.8
																100.0
Other Financial Instruments
Assets
Futures Contracts		649			—				—		—		649			0.1
Foreign Currency Exchange Contracts		—			1,897				—		—		1,897			0.4
Liabilities
Futures Contracts		(1,210	)		—				—		—		(1,210	)		(0.3	)
Foreign Currency Exchange Contracts		—			(1,083	)			—		—		(1,083	)		(0.2	)
Total Other Financial Instruments**	$	(561	)	$	814		$		—	$	—	$	253

* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.

See accompanying notes which are an integral part of the financial statements.

64 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands
	Fair Value
Sector Exposure		$
Consumer Discretionary		54,253
Consumer Staples		28,110
Energy		22,269
Financial Services		109,762
Health Care		30,578
Materials and Processing		35,041
Producer Durables		44,888
Technology		54,524
Utilities		27,444
Warrants and Rights		10
Short-Term Investments		21,473
Total Investments		428,352

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 65

Russell Investment Funds
International Developed Markets Fund

Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

				Foreign
	Equity			Currency
Derivatives not accounted for as hedging instruments	Contracts			Contracts
Location: Statement of Assets and Liabilities - Assets
Unrealized appreciation on foreign currency exchange contracts	$	—		$	1,897
Variation margin on futures contracts*		649			—
Total	$	649		$	1,897
Location: Statement of Assets and Liabilities - Liabilities
Variation margin on futures contracts*	$	1,210		$	—
Unrealized depreciation on foreign currency exchange contracts		—			1,083
Total	$	1,210		$	1,083
				Foreign
	Equity			Currency
Derivatives not accounted for as hedging instruments	Contracts			Contracts
Location: Statement of Operations - Net realized gain (loss)
Futures contracts	$	810		$	—
Options written		(922	)		—
Foreign currency exchange contracts		—			602
Total	$	(112	)	$	602
Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Futures contracts	$	(834	)	$	—
Options written		8			—
Foreign currency exchange contracts		—			1,195
Total	$	(826	)	$	1,195

* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

66 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Assets and Derivative Assets
							Gross			Net Amounts
							Amounts					of Assets
						Gross	Offset in the			Presented in
				Amounts of			Statement of			the Statement
				Recognized			Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Assets					Assets	Liabilities					Liabilities
Securities on Loan*	Investments, at fair value			$		387		$	—		$	387
Foreign Currency Exchange Contracts	Unrealized appreciation on foreign currency exchange contracts					1,897			—			1,897
Futures Contracts	Variation margin on futures contracts					127			—			127
Total Financial and Derivative Assets						2,411			—			2,411
Financial and Derivative Assets not subject to a netting agreement						(127	)		—			(127	)
Total Financial and Derivative Assets subject to a netting agreement				$		2,284		$	—		$	2,284
Financial Assets, Derivative Assets, and Collateral Held by Counterparty
				Gross Amounts Not Offset in
				the Statement of Assets and
						Liabilities
		Net Amounts
			of Assets
		Presented in
		the Statement			Financial and
		of Assets and		Derivative			Collateral
Counterparty			Liabilities			Instruments	Received^					Net Amount
Bank of America		$	864		$	402		$	—		$	462
BNP Paribas			17			17			—			—
Brown Brothers Harriman			2			2			—			—
Citigroup			404			148			160			96
Commonwealth Bank of Australia			381			153			—			228
Goldman Sachs			115			—			115			—
JPMorgan Chase			112			—			112			—
State Street			389			214			—			175
Total		$	2,284		$	936		$	387		$	961

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 67

Russell Investment Funds
International Developed Markets Fund
Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
December 31, 2017

Amounts in thousands
Offsetting of Financial Liabilities and Derivative Liabilities
				Gross			Net Amounts
				Amounts			of Liabilities
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Liabilities	Liabilities		Liabilities				Liabilities
Futures Contracts	Variation margin on futures contracts	$	192		$	—    $		192
Foreign Currency Exchange Contracts	Unrealized depreciation on foreign currency exchange contracts		1,083			—		1,083
Total Financial and Derivative Liabilities			1,275			—		1,275
Financial and Derivative Liabilities not subject to a netting agreement			(192	)		—		(192	)
Total Financial and Derivative Liabilities subject to a netting agreement		$	1,083		$	—    $		1,083

Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Liabilities
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty		Liabilities	Instruments			Pledged^			Net Amount
Bank of America	$	404		$	402	$	—	$	2
BNP Paribas		143			17		—		126
Brown Brothers Harriman		21			2		—		19
Citigroup		148			148		—		—
Commonwealth Bank of Australia		153			153		—		—
State Street		214			214		—		—
Total	$	1,083		$	936	$	—	$	147

*       Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^      Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

68 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	385,454
Investments, at fair value(*)(>)		428,352
Cash		13
Cash (restricted)(a)		6,200
Foreign currency holdings(^)		960
Unrealized appreciation on foreign currency exchange contracts		1,897
Receivables:
Dividends and interest		444
Dividends from affiliated funds		29
Investments sold		733
Fund shares sold		4
Foreign capital gains taxes recoverable		335
Variation margin on futures contracts		127
Total assets		439,094
Liabilities
Payables:
Investments purchased		485
Fund shares redeemed		143
Accrued fees to affiliates		351
Other accrued expenses		128
Variation margin on futures contracts		192
Unrealized depreciation on foreign currency exchange contracts		1,083
Payable upon return of securities loaned		402
Total liabilities		2,784
Net Assets	$	436,310

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 69

Russell Investment Funds
International Developed Markets Fund

Statement of Assets and Liabilities, continued — December 31, 2017

Amounts in thousands
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	(9	)
Accumulated net realized gain (loss)		8,833
Unrealized appreciation (depreciation) on:
Investments		42,900
Investments in affiliated funds		(2	)
Futures contracts		(561	)
Foreign currency exchange contracts		814
Foreign currency-related transactions		28
Shares of beneficial interest		332
Additional paid-in capital		383,975
Net Assets	$	436,310
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	13.12
Net assets	$	436,310,116
Shares outstanding ($. 01 par value)		33,242,972
Amounts in thousands
(^)     Foreign currency holdings - cost	$	953
(*)      Securities on loan included in investments	$	387
(>)     Investments in affiliates, U. S. Cash Management Fund and U. S. Cash Collateral Fund	$	21,473
(a)     Cash Collateral for Futures	$	6,200
(#) Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

70 International Developed Markets Fund

Russell Investment Funds
International Developed Markets Fund

Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Dividends	$	11,172
Dividends from affiliated funds		211
Securities lending income (net)		90
Securities lending income from affiliated funds (net)		39
Less foreign taxes withheld		(948	)
Total investment income		10,564
Expenses
Advisory fees		3,558
Administrative fees		198
Custodian fees		334
Transfer agent fees		17
Professional fees		84
Trustees’ fees		10
Printing fees		51
Miscellaneous		16
Total expenses		4,268
Net investment income (loss)		6,296
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (net of deferred tax liability for foreign capital gains taxes)		57,179
Investments in affiliated funds		(1	)
Futures contracts		810
Options written		(922	)
Foreign currency exchange contracts		602
Foreign currency-related transactions		146
Net realized gain (loss)		57,814
Net change in unrealized appreciation (depreciation) on:
Investments		22,289
Investments in affiliated funds		(3	)
Futures contracts		(834	)
Options written		8
Foreign currency exchange contracts		1,195
Foreign currency-related transactions		79
Net change in unrealized appreciation (depreciation)		22,734
Net realized and unrealized gain (loss)		80,548
Net Increase (Decrease) in Net Assets from Operations	$	86,844

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 71

Russell Investment Funds
International Developed Markets Fund

Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	6,296		$	6,237
Net realized gain (loss)		57,814			9,806
Net change in unrealized appreciation (depreciation)		22,734			(7,501	)
Net increase (decrease) in net assets from operations		86,844			8,542
Distributions
From net investment income .		(10,619	)		(11,300	)
From net realized gain .		(14,486	)		—
Net decrease in net assets from distributions		(25,105	)		(11,300	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		19,197			7
Total Net Increase (Decrease) in Net Assets		80,936			(2,751	)
Net Assets
Beginning of period		355,374			358,125
End of period	$	436,310		$	355,374
Undistributed (overdistributed) net investment income included in net assets	$	(9	)	$	2,246

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	2,608		$	33,743		1,527		$	16,521
Proceeds from reinvestment of distributions	1,946			25,104		1,055			11,301
Payments for shares redeemed	(3,173	)		(39,650	)	(2,514	)		(27,815	)
Total increase (decrease)	1,381		$	19,197		68		$	7

See accompanying notes which are an integral part of the financial statements.

72 International Developed Markets Fund

(This page intentionally left blank)

Russell Investment Funds
International Developed Markets Fund

Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

		$		$		$		$		$		$
	Net Asset Value,			Net	Net Realized			Total from		Distributions		Distributions
	Beginning of		Investment		and Unrealized			Investment		from Net		from Net
		Period	Income (Loss)(a)(b)		Gain (Loss)			Operations		Investment Income		Realized Gain
December 31, 2017		11.15		. 19	2.58			2.77		(. 34	)	(. 46	)
December 31, 2016		11.26		. 19		. 06		. 25		(. 36	)	—
December 31, 2015		11.54		. 19		(. 33	)	(. 14	)	(. 14	)	—
December 31, 2014		12.32		. 26		(. 80	)	(. 54	)	(. 24	)	—
December 31, 2013		10.31		. 18	2.05			2.23		(. 22	)	—

See accompanying notes which are an integral part of the financial statements.

74 International Developed Markets Fund

								%		%		%
			$			$		Ratio of Expenses	Ratio of Expenses		Ratio of Net
			Net Asset Value,	%		Net Assets,		to Average	to Average		Investment Income		%
	$		End of	Total		End of Period		Net Assets,	Net Assets,		to Average		Portfolio
Total Distributions			Period	Return(d)		(000	)	Gross(e)	Net(b)(e)		Net Assets(b)		Turnover Rate
	(. 80	)	13.12	24.98		436,310		1.08		1.08		1.59	117
	(. 36	)	11.15	2.36		355,374		1.02		1.02		1.78	36
	(. 14	)	11.26	(1.31	)	358,125		1.06		1.04		1.60	35
	(. 24	)	11.54	(4.45	)	379,675		1.08		1.03		2.13	32
	(. 22	)	12.32	21.91		428,517		1.04		. 99		1.76	36

See accompanying notes which are an integral part of the financial statements.

International Developed Markets Fund 75

Russell Investment Funds
International Developed Markets Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:
Advisory fees	$	330,070
Administration fees		18,337
Transfer agent fees		1,614
Trustee fees		724
	$	350,745

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

		Fair Value,							Change in
	Beginning of					Realized Gain			Unrealized	Fair Value, End				Income	Capital Gains
		Period		Purchases		Sales		(Loss)	Gain (Loss)	of Period		Distributions			Distributions
U. S. Cash Management Fund	$	18,922	$	237,422	$	235,269	$	(1)	$      (3)	$	21,071		$	211		$	—
U. S. Cash Collateral Fund		548		70,849		70,995		—	—		402			39			—
	$	19,470	$	308,271	$	306,264	$	(1)	$      (3)	$	21,473		$	250		$	—

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	389,510,259
Unrealized Appreciation	$	47,546,343
Unrealized Depreciation		(8,257,239	)
Net Unrealized Appreciation (Depreciation)	$	39,289,104
Undistributed Ordinary Income	$	2,332,654
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	11,616,846
Tax Composition of Distributions
Ordinary Income	$	10,619,097
Long-Term Capital Gains	$	14,485,707

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent book-tax differences.  Book-tax
differences are primarily due to foreign currency gains and losses, reclassifications of dividends, differences in treatment of income
from swaps, net operating losses, investments in partnerships, investments in passive foreign investment companies (PFICs), tax
straddle transaction, use of tax equalization and foreign capital gains taxes.  These adjustments have no impact on the net assets. At
December 31, 2017, the Statement of Assets and Liabilities have been adjusted by the following amounts (in thousands):

Undistributed net investment income	$	2,068
Accumulated net realized gain (loss)		(2,068	)
Additional paid-in capital		—

See accompanying notes which are an integral part of the financial statements.

76 International Developed Markets Fund

Russell Investment Funds
Strategic Bond Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

Strategic Bond Fund			Bloomberg Barclays U. S. Aggregate Bond Index**
	Total			Total
	Return			Return
1 Year	3.86	%	1 Year		3.54	%
5 Years	2.13	%§	5 Years		2.10	%§
10 Years	4.47	%§	10 Years		4.01	%§

Strategic Bond Fund 77

Russell Investment Funds
Strategic Bond Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The Strategic Bond Fund (the “Fund”) employs a multi-manager	For the fiscal year ended December 31, 2017, strong investor
approach whereby portions of the Fund are allocated to different	demand, solid corporate earnings and flattening of the yield
money manager strategies. Fund assets not allocated to money	curve all combined to create a favorable environment for Fund
managers are managed by Russell Investment Management, LLC	performance.
(“RIM”), the Fund’s advisor. RIM may change the allocation of the
Fund’s assets among money managers at any time. An exemptive	How did the investment strategies and techniques employed
order from the Securities and Exchange Commission (“SEC”)	by the Fund and its money managers affect its benchmark
permits RIM to engage or terminate a money manager at any time,	relative performance?
subject to approval by the Fund’s Board, without a shareholder	RIM’s asset allocation for the Fund contributed positively to
vote. Pursuant to the terms of the exemptive order, the Fund	benchmark relative performance over the period as a result of
is required to notify its shareholders within 90 days of when a	the Fund’s ex-benchmark exposure to high yield corporate debt
money manager begins providing services. As of December 31,	and non-agency mortgage backed securities, which outperformed
2017, the Fund had six money managers.	the more traditional Bloomberg Barclays U. S. Aggregate Bond
	Index benchmark. RIM’s allocations to ex-benchmark global real
What is the Fund’s investment objective?	yield and currency strategies detracted from performance as both
The Fund seeks to provide current income, and as a secondary	underperformed the Fund’s benchmark.
objective, capital appreciation.	The Fund employs discretionary money managers. The Fund’s
How did the Fund perform relative to its benchmark for the	discretionary money managers select the individual portfolio
fiscal year ended December 31, 2017?	securities for the assets assigned to them. Fund assets not
For the fiscal year ended December 31, 2017, the Fund gained	allocated to discretionary money managers include the Fund’s
3.86%. This is compared to the Fund’s benchmark, the Bloomberg	cash balances and assets which may be managed directly by
Barclays U. S. Aggregate Bond Index, which gained 3.54% during	RIM to effect the Fund’s investment strategies and/or to actively
the same period. The Fund’s performance includes operating	manage the Fund’s overall exposures by investing in securities or
expenses, whereas index returns are unmanaged and do not	other instruments that RIM believes will achieve the desired risk/
include expenses of any kind.	return profile for the Fund.
For the fiscal year ended December 31, 2017, the Morningstar®	With respect to certain of the Fund’s money managers, Logan
Insurance Intermediate-Term Bond Category, a group of funds	Circle Partners, L. P. (“Logan Circle”) was the best performing
that Morningstar considers to have investment strategies similar	manager during the period, outperforming the Fund’s benchmark
to those of the Fund, gained 3.88%. This result serves as a peer	and the benchmark assigned to it by RIM, the Bloomberg
comparison and is expressed net of operating expenses.	Barclays U. S. Corporate Bond Index. Logan Circle benefited
	from a strong corporate rally during the year that saw significant
RIM may assign a money manager a benchmark other than the	spread tightening in the U. S. This was beneficial as Logan Circle
Fund’s index. However, the Fund’s primary index remains the	held an overweight to investment grade corporates and emerging
benchmark for the Fund.	market debt. The manager’s underweights to government and
How did the market conditions described in the Market	securitized sectors were positive as these sectors underperformed
Summary report affect the Fund’s performance?	the corporate sector.
The fiscal year ended December 31, 2017 was characterized by	Pareto Investment Management Limited (“Pareto”), a fully
a risk on rally that saw both U. S. and European credit spreads	discretionary currency manager, was the worst performing
tighten, global growth improve and conducive monetary policies	manager over the period. Pareto’s long position in the U. S. dollar
from central banks. Overall, this proved positive for fixed income	versus a basket of short currencies significantly underperformed
sectors around the globe. The U. S. yield curve saw interest rates	during the year as the U. S. dollar significantly depreciated in
rise for the fiscal year with the short end of the curve rising 88	2017 while non-U. S. dollar currencies rallied.
basis points on a 3-month treasury bill, while the 10-year treasury	RIM managed a three-pronged strategy to seek to generate active
bond interest rate was flat. The German Bund saw a parallel shift	returns through currency positioning by supplementing the
upwards in interest rates during 2017 and the British Gilt saw	Fund’s existing active currency mandate with a more mechanistic
interest rates rise on the short end of the curve and fall on the	strategy and to further reduce the Fund’s reliance on traditional
longer end. The U. S. experienced the largest interest rate moves	fixed income market risks. This approach incorporates a currency
as the U. S. Federal Reserve raised interest rates three times	overlay, an index replication and an enhanced cash strategy.
during the year.	The currency overlay utilizes currency forward contracts to take

78 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

long and short positions in global foreign exchange markets.	derivatives and currency forward contracts. RIM’s futures trades
Because the currency overlay is an out-of-benchmark position,	had a positive impact on the Fund.
RIM managed an index replication strategy in connection with
the currency overlay to provide benchmark-like exposure to	Describe any changes to the Fund’s structure or the money
its overall strategy. The enhanced cash strategy is designed to	manager line-up.
provide for modest returns on the cash held in connection with the	There were no changes to the Fund’s money manager line-up
currency overlay and index replication strategies. Over the fiscal	during the period.
year, the currency overlay strategy was negative for the Fund’s	RIM implemented the new positioning strategy discussed above.
benchmark relative performance.
	Money Managers as of December 31,
RIM also managed a global real yield strategy using global	2017	Styles
government bond futures to take long positions in high quality
	Colchester Global Investors Limited	Fully discretionary
government bonds whose net-of-inflation yields are expected to be	Logan Circle Partners, L. P.	Sector Specialist
relatively high and short positions where net-of-inflation yield is	Pareto Investment Management Limited	Fully discretionary
expected to be relatively low. This strategy had a negative impact	Schroder Investment Management North
on Fund performance as the long positions underperformed as	America Inc.	Sector Specialist
interest rates rose on those positions, widening compared to the	Scout Investments, Inc.	Fully discretionary
	Western Asset Management Company
short positions.	and Western Asset Management Company
In addition, RIM implemented a new positioning strategy that	Limited	Fully discretionary
screens securities based on value within the Bloomberg Barclays
U. S. Corporate Bond Index, and purchases physical bonds
that RIM believes to be undervalued. The strategy tracked	The views expressed in this report reflect those of the
the Bloomberg Barclays U. S. Corporate Bond Index since its	portfolio managers only through the end of the period
inception in October 2017.	covered by the report. These views do not necessarily
During the period, RIM utilized futures and swaps to seek to	represent the views of RIM, or any other person in RIM or
achieve the Fund benchmark’s duration and credit exposures with	any other affiliated organization. These views are subject to
respect to the portion of the Fund allocated to cash reserves. This	change at any time based upon market conditions or other
performed as intended in terms of absolute return contribution.	events, and RIM disclaims any responsibility to update the
RIM also managed tactical ‘tilts’ based on its judgments	views contained herein. These views should not be relied
regarding shorter-term opportunities to seek to generate returns	on as investment advice and, because investment decisions
and/or mitigate risk by purchasing government futures, credit	for a Russell Investment Funds (“RIF”) Fund are based on
	numerous factors, should not be relied on as an indication
	of investment decisions of any RIF Fund.

* Assumes initial investment on January 1, 2008.

** The Bloomberg Barclays U.S. Aggregate Bond Index is an index, with income reinvested, generally representative of intermediate-term government bonds,
investment-grade corporate debt securities and mortgage-backed securities.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

Strategic Bond Fund 79

Russell Investment Funds
Strategic Bond Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this on
administrative fees and other Fund expenses. The Example is	do not reflect any Insurance Company Separate Account Policy
intended to help you understand your ongoing costs (in dollars)	Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017.	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,010.00	$	1,021.93
The information in the table under the heading “Actual	Expenses Paid During Period*	$	3.29	$	3.31
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 0.65%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) . May reflect amounts waived and/or reimbursed. Without any
$1,000 (for example, an $8,600 account value divided by $1,000	waivers and/or reimbursements, expenses would have been higher.
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

80 Strategic Bond Fund

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Strategic Bond Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Long-Term Investments - 89.2%			1.860% due 08/08/22	625	619
Asset-Backed Securities - 6.2%			Series 2017-A9 Class A9
Aames Mortgage Investment Trust			1.800% due 09/20/21	700	696
Series 2005-1 Class M6			Citigroup Mortgage Loan Trust, Inc.
1.793% due 06/25/35 (Ê)	1,040	792	Series 2007-WFH2 Class M2
Access Group, Inc.			1.221% due 03/25/37 (Ê)	1,490	1,367
Series 2007-1 Class A4			Conseco Financial Corp.
1.427% due 01/25/23 (Ê)	682	671	Series 1998-2 Class M1
ACE Securities Corp. Home Equity Loan			6.940% due 12/01/28 (~)(Ê)	1,410	1,331
Trust			Countrywide Asset-Backed Certificates
Series 2005-HE3 Class M2			Series 2005-5 Class M4
1.657% due 05/25/35 (Ê)	585	586	1.556% due 10/25/35 (Ê)	456	458
ACE Securities Corp. Mortgage Loan			Series 2005-9 Class M1
Trust			1.511% due 01/25/36 (Ê)	1,062	1,059
Series 2007-D1 Class A2			FFMLT Trust
6.336% due 02/25/38 (~)(Ê)(Þ)	670	618
AmeriCredit Automobile Receivables			Series 2005-FF8 Class M2
Trust			1.112% due 09/25/35 (Ê)	760	755
Series 2015-3 Class A3			Fieldstone Mortgage Investment Trust
1.540% due 03/09/20	266	266	Series 2004-4 Class M3
Series 2016-2 Class A2A			2.438% due 10/25/35 (Ê)	561	569
1.420% due 10/08/19	63	63	Ford Credit Auto Owner Trust
Ameriquest Mortgage Securities,			Series 2015-B Class A3
Inc. Asset-Backed Pass-Through			1.160% due 11/15/19	240	240
Certificates			Series 2017-B Class A2B
Series 2005-R1 Class M4			1.130% due 05/15/20 (Ê)	225	225
1.307% due 03/25/35 (Ê)	830	811	Series 2017-C Class A2A
Asset-Backed Funding Trust Certificates			1.800% due 09/15/20	600	599
Series 2005-WF1 Class M1			GMACM Home Equity Loan Trust
1.132% due 11/25/34 (Ê)	1,133	1,132	Series 2007-HE1 Class A4
BCAP LLC Trust			5.952% due 08/25/37 (~)(Ê)	642	665
Series 2014-RR3 Class 3A2			Series 2007-HE1 Class A5
1.390% due 07/26/36 (~)(Ê)(Þ)	1,330	1,225	5.705% due 08/25/37 (~)(Ê)	443	454
Series 2014-RR3 Class 5A2			Greenpoint Manufactured Housing
1.400% due 10/26/36 (~)(Ê)(Þ)	780	721	Contract Trust
Blackbird Capital Aircraft Lease			Series 2000-4 Class A3
Securitization, Ltd.			3.010% due 08/21/31 (Ê)	1,075	1,033
Series 2016-1A Class AA			GSAMP Trust
2.487% due 12/16/41 (~)(Ê)(Þ)	1,132	1,121	Series 2006-HE4 Class A1
CAL Funding III, Ltd.			0.732% due 06/25/36 (Ê)	812	794
Series 2017-1A Class A			Hertz Vehicle Financing LLC
3.620% due 06/25/42 (Þ)	751	749	Series 2015-2A Class A
Capital One Multi-Asset Execution Trust			2.020% due 09/25/19 (Þ)	920	918
Series 2014-A3 Class A3			Series 2017-1A Class B
1.857% due 01/18/22 (Ê)	250	251	3.560% due 10/25/21 (Þ)	420	418
CIT Mortgage Loan Trust			Home Equity Asset Trust
Series 2007-1 Class 1M1			Series 2005-9 Class M1
2.256% due 10/25/37 (Ê)(Þ)	260	252	0.580% due 04/25/36 (Ê)	380	368
Citibank Credit Card Issuance Trust			Series 2006-4 Class 2A4
Series 2014-A1 Class A1			1.518% due 08/25/36 (Ê)	784	751
2.880% due 01/23/23	1,890	1,925	Series 2006-6 Class 2A3
Series 2014-A5 Class A5			0.596% due 11/25/36 (Ê)	780	716
2.680% due 06/07/23	550	556	Honda Auto Receivables Owner Trust
Series 2014-A6 Class A6			Series 2015-2 Class A3
2.150% due 07/15/21	415	415	1.040% due 02/21/19	208	208
Series 2016-A2 Class A2			Series 2015-4 Class A3
2.190% due 11/20/23	620	615	1.230% due 09/23/19	523	521
Series 2017-A8 Class A8

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 81

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Series 2017-2 Class A2			Series 2004-WHQ2 Class M2
1.460% due 10/15/19	370	369	1.470% due 02/25/35 (Ê)	194	194
HSI Asset Securitization Corp. Trust			Series 2005-WHQ1 Class M5
Series 2006-OPT3 Class 2A			1.896% due 03/25/35 (Ê)	1,290	1,284
9.611% due 02/25/36 (Ê)	427	427	Popular ABS Mortgage Pass-Through
Series 2007-OPT1 Class 1A			Trust
0.628% due 12/25/36 (Ê)	301	251	Series 2006-C Class A4
Hyundai Auto Receivables Trust			0.775% due 07/25/36 (Ê)	941	932
Series 2015-A Class A3			Series 2006-D Class A3
1.050% due 04/15/19	44	44	0.785% due 11/25/46 (Ê)	1,500	1,462
Series 2015-C Class A3			RAMP Trust
1.460% due 02/18/20	227	227	Series 2006-RZ1 Class M4
LCM XXII, Ltd.			1.058% due 03/25/36 (Ê)	960	884
Series 2016-22A Class A1			Renaissance Home Equity Loan Trust
2.636% due 10/20/28 (Ê)(Þ)	1,133	1,151	Series 2006-1 Class AF6
			5.746% due 05/25/36 (~)(Ê)	101	74
LCM XXV, Ltd.			Residential Asset Mortgage Products,
Series 2017-25A Class A			Inc. Trust
2.524% due 07/20/30 (Ê)(Þ)	1,124	1,133	Series 2005-EFC1 Class M3
Long Beach Mortgage Loan Trust			1.258% due 05/25/35 (Ê)	271	271
Series 2004-1 Class M1			Santander Drive Auto Receivables Trust
1.741% due 02/25/34 (Ê)	538	538	Series 2015-2 Class B
Series 2004-4 Class M1			1.830% due 01/15/20	31	31
1.425% due 10/25/34 (Ê)	940	936	SBA Small Business Investment Cos.
Madison Park Funding XVIII, Ltd.			Series 2017-10A Class 1
Series 2017-18A Class A1R			2.845% due 03/10/27	589	595
2.553% due 10/21/30 (Ê)(Å)	872	879	Series 2017-10B Class 1
Madison Park Funding XXVI, Ltd.			2.518% due 09/10/27	320	320
Series 2017-26A Class AR			SLM Private Credit Student Loan Trust
2.523% due 07/29/30 (Ê)(Þ)	780	787	Series 2005-B Class A4
Magnetite XVIII, Ltd.			1.180% due 06/15/39 (Ê)	650	617
Series 2016-18A Class A			Series 2006-A Class A5
2.715% due 11/15/28 (Ê)(Þ)	1,488	1,499	0.943% due 06/15/39 (Ê)	280	268
Master Asset-Backed Securities Trust			SLM Student Loan Trust
Series 2005-WMC1 Class M4			Series 2008-6 Class A4
2.179% due 03/25/35 (Ê)	551	553	2.467% due 07/25/23 (Ê)	170	172
Mercedes-Benz Auto Receivables Trust			Series 2010-1 Class A
Series 2016-1 Class A2A			0.934% due 03/25/25 (Ê)	272	269
1.110% due 03/15/19	268	268	Structured Asset Investment Loan Trust
Merrill Lynch Mortgage Investors Trust			Series 2005-HE3 Class M1
Series 2006-FF1 Class M4			1.711% due 09/25/35 (Ê)	882	879
0.895% due 08/25/36 (Ê)	790	779	Textainer Marine Containers, Ltd.
Nelnet Student Loan Trust			Series 2017-1A Class A
Series 2008-3 Class A4			3.720% due 05/20/42 (Þ)	939	944
2.967% due 11/25/24 (Ê)	381	389	THL Credit Wind River CLO, Ltd.
New Century Home Equity Loan Trust			Series 2017-2A Class AR
Series 2005-B Class M1			2.584% due 10/18/30 (Ê)(Å)	1,016	1,025
1.236% due 10/25/35 (Ê)	690	666	Towd Point Mortgage Trust
Nissan Auto Receivables Owner Trust			Series 2016-3 Class A1
Series 2017-C Class A2A			2.250% due 08/25/55 (~)(Ê)(Þ)	382	378
1.890% due 10/15/20	820	819	Series 2017-1 Class A1
Option One Mortgage Loan Trust			2.750% due 10/25/56 (~)(Ê)(Þ)	1,549	1,546
Series 2004-3 Class M1			Series 2017-2 Class A1
1.314% due 11/25/34 (Ê)	841	839	2.750% due 04/25/57 (~)(Ê)(Þ)	707	707
Series 2007-FXD1 Class 3A4			Series 2017-3 Class A1
5.860% due 01/25/37 (~)(Ê)	390	388	2.750% due 06/25/57 (~)(Ê)(Þ)	712	711
Park Place Securities, Inc. Asset-Backed
Pass-Through Certificates			Series 2017-4 Class A1

See accompanying notes which are an integral part of the financial statements.

82 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
2.750% due 06/25/57 (~)(Ê)(Þ)	350	349	4.375% due 10/01/22	343	350
Toyota Auto Receivables Owner Trust			Series 2016-1 Class B
Series 2015-A Class A3			5.250% due 01/15/24	320	338
1.120% due 02/15/19	58	58	Series 2017-1B Class B
Triton Container Finance IV LLC			4.950% due 02/15/25	210	220
Series 2017-2A Class A			American Axle & Manufacturing, Inc.
3.620% due 08/20/42 (Þ)	635	636	6.625% due 10/15/22	50	52
Triton Container Finance LLC			American Campus Communities
Series 2017-1A Class A			Operating Partnership LP
3.520% due 06/20/42 (Þ)	290	288	3.350% due 10/01/20	247	252
USAA Auto Owner Trust			American Express Co.
			2.200% due 10/30/20	1,085	1,076
Series 2016-1 Class A2			3.000% due 10/30/24	685	684
1.070% due 03/15/19	72	72
Wells Fargo Home Equity Asset-Backed			American Express Credit Corp.
Securities Trust			1.875% due 05/03/19	458	456
Series 2005-3 Class M4			1.700% due 10/30/19	610	604
1.581% due 11/25/35 (Ê)	500	503	Series F
		55,944	2.600% due 09/14/20	870	874
Corporate Bonds and Notes - 19.4%			American Honda Finance Corp.
21st Century Fox America, Inc.			Series MTN
8.450% due 08/01/34	160	241	1.753% due 02/14/20 (Ê)	1,000	1,003
6.400% due 12/15/35	125	166	American International Group, Inc.
6.900% due 08/15/39	730	1,030	6.400% due 12/15/20	825	915
Abbott Laboratories			3.750% due 07/10/25	110	113
2.350% due 11/22/19	595	595	American Tower Trust
2.900% due 11/30/21	400	405	3.070% due 03/15/23 (Þ)	270	273
3.750% due 11/30/26	90	92	AmerisourceBergen Corp.
4.750% due 11/30/36	60	67	3.450% due 12/15/27	330	327
4.900% due 11/30/46	80	92	Amgen, Inc.
AbbVie, Inc.			3.625% due 05/22/24	10	10
2.500% due 05/14/20	691	693	4.400% due 05/01/45	100	109
3.600% due 05/14/25	60	62	Anadarko Petroleum Corp.
AES Corp.			4.850% due 03/15/21	100	106
5.500% due 03/15/24	50	52	5.550% due 03/15/26	240	269
Aetna, Inc.			6.450% due 09/15/36	997	1,221
2.800% due 06/15/23	30	30	4.500% due 07/15/44	125	124
Allison Transmission, Inc.			6.600% due 03/15/46	90	116
5.000% due 10/01/24 (Þ)	90	93	Andeavor
Ally Financial, Inc.			4.750% due 12/15/23 (Þ)	209	225
8.000% due 11/01/31	100	130	Andeavor Logistics LP
Altria Group, Inc.			5.250% due 01/15/25	225	237
9.250% due 08/06/19	434	481	Anheuser-Busch Cos. LLC
2.850% due 08/09/22	170	171	5.000% due 03/01/19	215	222
10.200% due 02/06/39	482	839	Anheuser-Busch InBev Finance, Inc.
Amazon. com, Inc.			1.900% due 02/01/19	250	249
5.200% due 12/03/25	305	350	2.650% due 02/01/21	160	161
3.150% due 08/22/27 (Þ)	160	160	3.300% due 02/01/23	200	205
3.875% due 08/22/37 (Þ)	50	53	3.650% due 02/01/26	500	516
4.950% due 12/05/44	60	73	4.900% due 02/01/46	120	139
4.050% due 08/22/47 (Þ)	205	220	Anthem, Inc.
4.250% due 08/22/57 (Þ)	360	392	2.500% due 11/21/20	350	349
American Airlines, Inc. Pass-Through			3.700% due 08/15/21	40	41
Certificates Trust			3.125% due 05/15/22	395	398
Series 2011-1 Class A			2.950% due 12/01/22	690	690
5.250% due 01/31/21	183	193	3.350% due 12/01/24	30	30
Series 2013-2 Class A			3.650% due 12/01/27	625	637
4.950% due 01/15/23	452	481	4.375% due 12/01/47	405	430
Series 2014-1 Class B

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 83

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Aon Corp.			4.450% due 03/03/26	30	32
8.205% due 01/01/27	172	224	3.500% due 04/19/26	1,295	1,323
Apache Corp.			3.593% due 07/21/28 (Ê)	260	264
3.250% due 04/15/22	20	20	Series L
5.100% due 09/01/40	140	149	2.600% due 01/15/19	8	8
4.750% due 04/15/43	130	133	2.650% due 04/01/19	243	244
4.250% due 01/15/44	20	19	Bank of New York Mellon Corp. (The)
Apollo Management Holdings, LP			2.600% due 08/17/20	225	227
4.400% due 05/27/26 (Þ)	385	402	2.200% due 08/16/23	355	344
Apple, Inc.			Bank One Capital III
2.274% due 02/22/19 (Ê)	591	596	8.750% due 09/01/30	280	412
1.691% due 05/06/19 (Ê)	480	482	BankAmerica Capital III
2.000% due 11/13/20	80	79	1.929% due 01/15/27 (Ê)	345	323
2.850% due 05/11/24	185	186	Barrick NA Finance LLC
3.250% due 02/23/26	410	418	4.400% due 05/30/21	265	280
2.450% due 08/04/26	110	105	5.700% due 05/30/41	130	160
4.650% due 02/23/46	100	117	BAT Capital Corp.
Associated Banc-Corp.			2.297% due 08/14/20 (Þ)	245	244
2.750% due 11/15/19	221	222	3.557% due 08/15/27 (Þ)	410	410
AT&T, Inc.			4.390% due 08/15/37 (Þ)	520	544
2.206% due 03/11/19 (Ê)	900	905	4.540% due 08/15/47 (Þ)	180	189
3.000% due 02/15/22	40	40	Bayer US Finance LLC
2.850% due 02/14/23	355	356	2.375% due 10/08/19 (Þ)	224	224
3.800% due 03/01/24	295	302	BB&T Corp.
3.400% due 08/14/24	885	889	5.250% due 11/01/19	232	244
4.250% due 03/01/27	500	509	Beacon Escrow Corp.
3.900% due 08/14/27	130	131	4.875% due 11/01/25 (Þ)	20	20
4.300% due 02/15/30 (Þ)	1,839	1,838	Becton Dickinson and Co.
8.250% due 11/15/31 (Þ)	350	485	2.894% due 06/06/22	560	556
4.900% due 08/14/37	490	497	3.363% due 06/06/24	180	180
4.350% due 06/15/45	90	83	3.734% due 12/15/24	19	19
4.750% due 05/15/46	190	186	4.685% due 12/15/44	10	11
5.150% due 11/15/46 (Þ)	245	250	Bed Bath & Beyond, Inc.
Athene Global Funding			5.165% due 08/01/44	285	251
2.750% due 04/20/20 (Þ)	920	920	BGC Partners, Inc.
AutoNation, Inc.			5.375% due 12/09/19	232	243
3.800% due 11/15/27	760	752	Blue Cube Spinco, Inc.
Avnet, Inc.			10.000% due 10/15/25	235	282
4.625% due 04/15/26	214	221	BMW US Capital LLC
BAC Capital Trust XIV			1.500% due 04/11/19 (Þ)	840	834
Series G			1.450% due 09/13/19 (Þ)	249	246
4.000% due 09/29/49 (Ê)(ƒ)	70	63	1.727% due 04/06/20 (Ê)(Þ)	300	301
Baker Hughes, a GE Co. LLC			Boeing Co. (The)
2.773% due 12/15/22 (Þ)	240	240	4.875% due 02/15/20	100	106
Ball Corp.			Brighthouse Financial, Inc.
5.250% due 07/01/25	110	120	3.700% due 06/22/27 (Þ)	825	811
Bank of America Corp.			4.700% due 06/22/47 (Þ)	50	51
2.328% due 10/01/21 (Ê)	340	339	Broadcom Corp. / Broadcom Cayman
3.004% due 12/20/23 (Ê)(Þ)	42	42	Finance, Ltd.
4.250% due 10/22/26	170	179	3.125% due 01/15/25 (Þ)	70	67
3.824% due 01/20/28 (Ê)	790	817	3.500% due 01/15/28 (Þ)	955	910
3.419% due 12/20/28 (Ê)(Þ)	482	482	Buckeye Partners LP
6.110% due 01/29/37	330	422	5.850% due 11/15/43	230	248
Series AA			Bunge, Ltd. Finance Corp.
6.100% due 12/31/49 (Ê)(ƒ)	50	55	8.500% due 06/15/19	234	253
Series GMTN			Burlington Northern Santa Fe LLC
3.300% due 01/11/23	460	471	4.150% due 04/01/45	100	109

See accompanying notes which are an integral part of the financial statements.

84 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)					Amounts in thousands (except share amounts)
	Principal		Fair			Principal	Fair
	Amount ($)		Value			Amount ($)	Value
	or Shares		$			or Shares	$
Capital One Bank USA NA					Citigroup, Inc.
Series BKNT					5.375% due 08/09/20	232	249
2.250% due 02/13/19		510		509	4.450% due 09/29/27	1,455	1,540
Capital One Financial Corp.					8.125% due 07/15/39	420	671
2.400% due 10/30/20		240		239	5.300% due 05/06/44	101	119
Cardinal Health, Inc.					4.650% due 07/30/45	147	167
2.616% due 06/15/22		50		49	4.750% due 05/18/46	220	242
3.079% due 06/15/24		60		59	Series P
Carlyle Holdings II Finance LLC					5.950% due 12/31/49 (Ê)(ƒ)	280	298
5.625% due 03/30/43 (Þ)		215		246	Citizens Financial Group, Inc.
Caterpillar Financial Services Corp.					2.375% due 07/28/21	520	513
1.900% due 03/22/19		265		265	CME Group, Inc.
1.350% due 05/18/19		230		228	5.300% due 09/15/43	30	38
1.931% due 10/01/21		450		440	CNH Industrial Capital LLC
CBL & Associates LP					3.875% due 10/15/21	250	254
5.950% due 12/15/26		222		206	CNOOC Finance USA LLC
CCO Holdings LLC / CCO Holdings					3.500% due 05/05/25	300	302
Capital Corp.					Comcast Corp.
5.125% due 05/01/23 (Þ)		50		51	2.350% due 01/15/27	635	600
5.375% due 05/01/25 (Þ)		110		113	6.500% due 11/15/35	90	122
Celgene Corp.					CommScope Technologies LLC
3.550% due 08/15/22		30		31	5.000% due 03/15/27 (Þ)	30	30
5.000% due 08/15/45		80		91	Concho Resources, Inc.
CF Industries, Inc.					3.750% due 10/01/27	180	182
5.375% due 03/15/44		555		548	4.875% due 10/01/47	325	356
Charles Schwab Corp. (The)					Constellation Brands, Inc.
3.200% due 01/25/28		530		531	6.000% due 05/01/22	335	376
Charter Communications Operating LLC					4.750% due 11/15/24	40	44
/ Charter Communications Operating
Capital					Continental Airlines Pass-Through Trust
4.908% due 07/23/25		680		723	Series 071A Class A
4.200% due 03/15/28		705		698	5.983% due 04/19/22	79	86
6.384% due 10/23/35		40		47	Series 991A Class A
6.484% due 10/23/45		775		903	6.545% due 02/02/19 (Š)	80	82
6.834% due 10/23/55		206		248	Continental Resources, Inc.
Cheniere Corpus Christi Holdings LLC					4.500% due 04/15/23	90	92
5.125% due 06/30/27		60		62	4.375% due 01/15/28 (Þ)	10	10
Cheniere Energy Partners, LP					Cott Holdings, Inc.
5.250% due 10/01/25 (Þ)		585		595	5.500% due 04/01/25 (Þ)	60	62
Chesapeake Energy Corp.					Cox Communications, Inc.
6.125% due 02/15/21		50		51	3.250% due 12/15/22 (Þ)	225	225
8.000% due 12/15/22 (Þ)		8		9	6.450% due 12/01/36 (Þ)	425	499
Chevron Corp.					Crown Castle Towers LLC
2.954% due 05/16/26		120		120	6.113% due 01/15/20 (Þ)	435	458
Chubb INA Holdings, Inc.					CVS Health Corp.
2.300% due 11/03/20		20		20	2.750% due 12/01/22	90	89
3.350% due 05/03/26		30		31	5.125% due 07/20/45	140	160
Cigna Corp.					DAE Funding LLC
3.050% due 10/15/27		440		432	4.500% due 08/01/22 (Þ)	22	22
Cimarex Energy Co.					5.000% due 08/01/24 (Þ)	30	30
3.900% due 05/15/27		70		72	Daimler Finance NA LLC
Cintas Corp. No. 2					1.750% due 10/30/19 (Þ)	720	711
2.900% due 04/01/22		60		61	2.300% due 01/06/20 (Þ)	1,189	1,186
3.700% due 04/01/27		70		73	Darden Restaurants, Inc.
Cisco Systems, Inc.					6.800% due 10/15/37	395	529
2.450% due 06/15/20		240		242	DaVita HealthCare Partners, Inc.
Citigroup Capital III					5.000% due 05/01/25	10	10
7.625% due 12/01/36		350		460

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 85

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
DDR Corp.			Enable Midstream Partners LP
3.625% due 02/01/25	256	252	3.900% due 05/15/24	244		245
Delhaize America, Inc.			Enbridge Energy Partners LP
9.000% due 04/15/31	154	220	5.200% due 03/15/20	238		250
Dell International LLC / EMC Corp.			Energy Transfer Partners, LP
3.480% due 06/01/19 (Þ)	150	152	4.250% due 03/15/23	420		417
4.420% due 06/15/21 (Þ)	479	499	4.050% due 03/15/25	405		405
7.125% due 06/15/24 (Þ)	100	109	7.500% due 07/01/38	192		238
8.350% due 07/15/46 (Þ)	710	914	6.050% due 06/01/41	325		348
Delphi Financial Group, Inc.			Series A
7.875% due 01/31/20	215	237	6.250% due 12/31/99 (Ê)(ƒ)	290		282
Delta Air Lines Pass-Through Trust			EnLink Midstream Partners, LP
Series 071A Class A			2.700% due 04/01/19	405		405
6.821% due 08/10/22	400	455	4.400% due 04/01/24	237		245
Series 2002-1 Class G-1			4.150% due 06/01/25	350		354
6.718% due 01/02/23	87	96	Series C
Delta Air Lines, Inc.			6.000% due 12/31/99 (Ê)(ƒ)	475		454
2.875% due 03/13/20	250	252	Enterprise Products Operating LLC
Deutsche Bank AG			Series A
2.700% due 07/13/20	260	259	5.084% due 08/01/66 (Ê)	360		360
Devon Energy Corp.			Series B
3.250% due 05/15/22	110	112	7.034% due 01/15/68 (Ê)	290		290
5.850% due 12/15/25	370	432	EOG Resources, Inc.
5.000% due 06/15/45	180	201	2.450% due 04/01/20	135		135
Devon Financing Co. LLC			4.150% due 01/15/26	30		32
7.875% due 09/30/31	765	1,050	EP Energy LLC / Everest Acquisition
Diageo Investment Corp.			Finance, Inc.
2.875% due 05/11/22	90	91	6.375% due 06/15/23	90		49
Digital Realty Trust LP			EPR Properties Co.
3.400% due 10/01/20	247	252	4.750% due 12/15/26	235		241
Discovery Communications LLC			Equifax, Inc.
5.625% due 08/15/19	258	271	3.300% due 12/15/22	230		228
4.900% due 03/11/26	168	179	Exelon Corp.
6.350% due 06/01/40	505	594	2.850% due 06/15/20	555		560
DISH DBS Corp.			Exelon Generation Co. LLC
5.875% due 07/15/22	50	50	2.950% due 01/15/20	257		260
5.875% due 11/15/24	100	97	Exxon Mobil Corp.
Dollar Tree, Inc.			1.739% due 03/15/19 (Ê)	800		801
5.750% due 03/01/23	70	73	3.043% due 03/01/26	60		61
Dominion Energy, Inc.			4.114% due 03/01/46	40		45
2.579% due 07/01/20	243	243	Series FXD
Dominion Resources, Inc.			1.912% due 03/06/20	257		256
7.000% due 06/15/38	20	28	Farmers Exchange Capital III
Domtar Corp.			5.454% due 10/15/54 (Ê)(Þ)	420		453
6.750% due 02/15/44	216	250	FedEx Corp.
Duke Energy Carolinas LLC			4.500% due 02/01/65	226		228
5.300% due 02/15/40	30	38	Fifth Third Bank
4.000% due 09/30/42	100	107	Series BKNT
Eastman Chemical Co.			2.300% due 03/15/19	223		223
2.700% due 01/15/20	241	243	2.875% due 10/01/21	450		454
Eaton Corp.			First Data Corp.
2.750% due 11/02/22	150	150	5.375% due 08/15/23 (Þ)	140		146
4.150% due 11/02/42	40	42	First Niagara Financial Group, Inc.
Ecolab, Inc.			6.750% due 03/19/20	237		258
4.350% due 12/08/21	8	9	FirstEnergy Corp.
Eli Lilly & Co.			Series B
3.100% due 05/15/27	50	51	4.250% due 03/15/23	100		104

See accompanying notes which are an integral part of the financial statements.

86 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
3.900% due 07/15/27	370	379	3.500% due 11/16/26	90		91
Series C			3.691% due 06/05/28 (Ê)	200		203
7.375% due 11/15/31	280	378	6.750% due 10/01/37	410		549
Ford Holdings LLC			6.250% due 02/01/41	160		215
9.300% due 03/01/30	175	247	5.150% due 05/22/45	30		35
Ford Motor Co.			4.750% due 10/21/45	250		286
4.750% due 01/15/43	50	51	Series D
Ford Motor Credit Co. LLC			6.000% due 06/15/20	150		162
5.875% due 08/02/21	200	220	Series GMTN
3.096% due 05/04/23	248	247	7.500% due 02/15/19	300		317
Freeport-McMoRan, Inc.			3.128% due 10/28/27 (Ê)	455		481
3.550% due 03/01/22	90	89	Goodyear Tire & Rubber Co. (The)
6.875% due 02/15/23	10	11	5.125% due 11/15/23	30		31
5.450% due 03/15/43	1,045	1,044	Great Plains Energy, Inc.
Fresenius Medical Care US Finance II,			5.292% due 06/15/22 (~)(Ê)	660		717
Inc.			Halliburton Co.
5.875% due 01/31/22 (Þ)	236	260	3.800% due 11/15/25	70		73
4.750% due 10/15/24 (Þ)	110	117	4.850% due 11/15/35	130		146
GE Capital International Funding Co.
Unlimited Co.			Harris Corp.
4.418% due 11/15/35	200	216	4.854% due 04/27/35	40		45
General Electric Co.			5.054% due 04/27/45	40		47
5.300% due 02/11/21	361	389	Hasbro, Inc.
4.500% due 03/11/44	190	210	3.500% due 09/15/27	745		728
Series GMTN			HCA, Inc.
6.875% due 01/10/39	411	592	4.750% due 05/01/23	50		52
			5.375% due 02/01/25	100		104
Series NOTZ			4.500% due 02/15/27	40		40
2.159% due 04/15/20 (Ê)	200	202
			5.500% due 06/15/47	405		404
General Motors Co.
4.875% due 10/02/23	320	346	Hess Corp.
4.200% due 10/01/27	385	398	7.125% due 03/15/33	200		241
6.250% due 10/02/43	120	142	Hewlett Packard Enterprise Co.
5.200% due 04/01/45	255	269	2.100% due 10/04/19 (Þ)	435		432
			6.200% due 10/15/35	860		934
General Motors Financial Co. , Inc.			6.350% due 10/15/45	236		250
3.500% due 07/10/19	219	222
4.375% due 09/25/21	20	21	HSBC Bank NA
4.250% due 05/15/23	10	10	Series BKNT		��
Georgia-Pacific LLC			5.875% due 11/01/34	475		612
8.875% due 05/15/31	515	797	HSBC Finance Corp.
Gerdau Holdings, Inc.			6.676% due 01/15/21	29		32
7.000% due 01/20/20 (Þ)	229	246	HSBC USA, Inc.
Gilead Sciences, Inc.			7.200% due 07/15/97	157		228
2.550% due 09/01/20	570	575	Humana, Inc.
3.650% due 03/01/26	90	93	3.150% due 12/01/22	10		10
4.750% due 03/01/46	100	116	3.950% due 03/15/27	100		104
			4.625% due 12/01/42	20		22
Glencore Funding LLC			4.950% due 10/01/44	20		23
4.625% due 04/29/24 (Þ)	40	42
4.000% due 03/27/27 (Þ)	200	201	4.800% due 03/15/47	10		11
GLP Capital, LP / GLP Financing II, Inc.			IBM Credit LLC
5.375% due 11/01/23	80	85	1.623% due 01/20/21 (Ê)	800		802
Goldman Sachs Capital II			Intel Corp.
4.000% due 06/01/43 (Ê)(ƒ)	3	3	2.450% due 07/29/20	248		251
			2.875% due 05/11/24	460		464
Goldman Sachs Group, Inc.			3.700% due 07/29/25	20		21
5.250% due 07/27/21	380	412
2.600% due 12/27/20	243	243	3.734% due 12/08/47 (Þ)	10		10
3.850% due 07/08/24	150	156	International Business Machines Corp.
3.272% due 09/29/25 (Ê)	775	772	1.783% due 02/12/19 (Ê)	220		221
4.250% due 10/21/25	310	324	1.875% due 05/15/19	251		250

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 87

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
International Lease Finance Corp.			Lamb Weston Holdings, Inc.
5.875% due 04/01/19	242	252	4.875% due 11/01/26 (Þ)	60	63
8.625% due 01/15/22	50	60	Land O' Lakes, Inc.
5.875% due 08/15/22	410	454	6.000% due 11/15/22 (Þ)	800	892
International Paper Co.			Lennar Corp.
8.700% due 06/15/38	305	461	4.500% due 04/30/24	40	41
JBS USA LUX SA / JBS USA Finance,			Leucadia National Corp.
Inc.			5.500% due 10/18/23	209	225
8.250% due 02/01/20 (Þ)	230	231
			Life Technologies Corp.
Jefferies Group LLC			6.000% due 03/01/20	224	240
6.500% due 01/20/43	190	224
			Lockheed Martin Corp.
Johnson & Johnson			3.350% due 09/15/21	220	226
2.250% due 03/03/22	450	449	4.500% due 05/15/36	10	11
3.625% due 03/03/37	70	74
			Series 10YR
JPMorgan Chase & Co.			3.550% due 01/15/26	90	93
2.750% due 06/23/20	440	444
			Macy's Retail Holdings, Inc.
4.400% due 07/22/20	231	243	3.450% due 01/15/21	225	226
4.250% due 10/15/20	300	315
2.550% due 03/01/21	580	580	Marathon Petroleum Corp.
2.086% due 03/09/21 (Ê)	1,720	1,723	5.000% due 09/15/54	234	237
4.350% due 08/15/21	130	138	MassMutual Global Funding II
4.125% due 12/15/26	230	243	1.950% due 09/22/20 (Þ)	1,315	1,299
4.250% due 10/01/27	30	32	Mattel, Inc.
3.782% due 02/01/28 (Ê)	325	337	5.450% due 11/01/41	265	219
6.400% due 05/15/38	170	234	McDonald's Corp.
4.950% due 06/01/45	100	116	3.700% due 01/30/26	60	63
			3.500% due 03/01/27	70	72
JPMorgan Chase Bank NA
			MeadWestvaco Corp.
Series BKNT			7.375% due 09/01/19	310	334
1.650% due 09/23/19	195	193
			Medtronic, Inc.
Kerr-McGee Corp.			3.500% due 03/15/25	150	156
6.950% due 07/01/24	10	12
7.875% due 09/15/31	30	40	Merck & Co. , Inc.
			2.750% due 02/10/25	40	40
Kinder Morgan Energy Partners, LP
7.500% due 11/15/40	189	242	Mercury General Corp.
			4.400% due 03/15/27	440	452
Kinder Morgan, Inc.
5.550% due 06/01/45	195	213	MetLife, Inc.
			6.400% due 12/15/36	309	355
Series GMTN
7.800% due 08/01/31	176	227	Metropolitan Life Global Funding I
			1.550% due 09/13/19 (Þ)	248	245
Kindred Healthcare, Inc.
8.750% due 01/15/23	60	64	Microsoft Corp.
			2.875% due 02/06/24	180	183
KKR Group Finance Co. II LLC			2.700% due 02/12/25	40	40
5.500% due 02/01/43 (Þ)	10	12	2.400% due 08/08/26	200	193
KKR Group Finance Co. III LLC			3.300% due 02/06/27	320	330
5.125% due 06/01/44 (Þ)	475	526	3.750% due 02/12/45	100	105
Kohl's Corp.
5.550% due 07/17/45	605	591	Monsanto Co.
			2.125% due 07/15/19	261	260
Kraft Foods Group, Inc.
3.500% due 06/06/22	60	61	Morgan Stanley
			5.625% due 09/23/19	200	211
Kraft Heinz Foods Co.			2.650% due 01/27/20	225	226
4.875% due 02/15/25 (Þ)	1,240	1,314	2.765% due 10/24/23 (Ê)	805	828
3.000% due 06/01/26	40	38	3.591% due 07/22/28 (Ê)	695	701
5.000% due 07/15/35	20	22
5.000% due 06/04/42	20	21	Series GMTN
5.200% due 07/15/45	20	22	3.750% due 02/25/23	670	694
4.375% due 06/01/46	20	20	Mosaic Co. (The)
			3.250% due 11/15/22	254	252
Kroger Co. (The)
5.150% due 08/01/43	20	22
4.650% due 01/15/48	545	557	MPLX LP

See accompanying notes which are an integral part of the financial statements.

88 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
4.875% due 06/01/25	100	107	PACCAR Financial Corp.
Mutual of Omaha Insurance Co.			1.650% due 02/25/19	245	244
4.297% due 07/15/54 (Ê)(Þ)	430	436	1.300% due 05/10/19	204	202
Mylan NV			1.200% due 08/12/19	210	207
3.950% due 06/15/26	365	368	Pacific Gas & Electric Co.
5.250% due 06/15/46	405	443	6.050% due 03/01/34	200	252
Navient Corp.			5.800% due 03/01/37	60	75
Series MTN			Pacific Life Insurance Co.
8.000% due 03/25/20	70	76	4.300% due 10/24/67 (Ê)(Þ)	280	281
NBCUniversal Media LLC			Pfizer, Inc.
4.375% due 04/01/21	140	148	1.700% due 12/15/19	252	250
NCL Corp. , Ltd.			Philip Morris International, Inc.
4.750% due 12/15/21 (Þ)	30	31	1.875% due 11/01/19	170	169
Netflix, Inc.			2.000% due 02/21/20	1,255	1,247
5.875% due 02/15/25	60	64	2.375% due 08/17/22	405	399
New York Life Global Funding			2.500% due 08/22/22	90	89
1.477% due 04/12/19 (Ê)(Þ)	1,685	1,684	6.375% due 05/16/38	70	95
Newell Brands, Inc.			4.500% due 03/20/42	40	43
2.875% due 12/01/19	221	223	Series 5YR
3.150% due 04/01/21	20	20	2.500% due 11/02/22	60	59
3.850% due 04/01/23	60	62	Pitney Bowes, Inc.
5.000% due 11/15/23	690	728	4.125% due 05/15/22	265	243
4.200% due 04/01/26	40	42	Plains All American Pipeline, LP / PAA
NGPL PipeCo. LLC			Finance Corp.
4.375% due 08/15/22 (Þ)	660	671	2.600% due 12/15/19	261	259
			Prime Security Services Borrower LLC /
Noble Energy, Inc.			Prime Finance, Inc.
3.900% due 11/15/24	150	154	9.250% due 05/15/23 (Þ)	120	133
3.850% due 01/15/28	80	80	Procter & Gamble Co. (The)
5.250% due 11/15/43	10	11	1.647% due 11/01/19 (Ê)	230	231
4.950% due 08/15/47	40	43	Progress Energy, Inc.
Norfolk Southern Corp.			4.400% due 01/15/21	30	31
1.800% due 02/14/20	525	521	PSEG Power LLC
Northrop Grumman Corp.			8.625% due 04/15/31	170	224
3.250% due 01/15/28	210	210	QUALCOMM, Inc.
Northwest Airlines Pass-Through Trust			2.600% due 01/30/23	530	517
Series 07-1			4.300% due 05/20/47	120	121
7.027% due 11/01/19	363	391	Quicken Loans, Inc.
NVR, Inc.			5.750% due 05/01/25 (Þ)	30	31
3.950% due 09/15/22	445	464	QVC, Inc.
Occidental Petroleum Corp.			4.375% due 03/15/23	230	236
3.125% due 02/15/22	30	31	4.850% due 04/01/24	233	245
3.400% due 04/15/26	50	51	Qwest Corp.
3.000% due 02/15/27	360	358	7.250% due 09/15/25	222	238
4.625% due 06/15/45	30	34	Range Resources Corp.
4.400% due 04/15/46	20	22	5.875% due 07/01/22	30	31
4.100% due 02/15/47	170	181	4.875% due 05/15/25	70	68
Omega Healthcare Investors, Inc.			Regency Energy Partners, LP / Regency
4.750% due 01/15/28	237	235	Energy Finance Corp.
ONEOK Partners, LP			5.875% due 03/01/22	60	66
6.650% due 10/01/36	205	251	5.000% due 10/01/22	235	250
ONEOK, Inc.			Reliance Holdings USA, Inc.
7.500% due 09/01/23	204	243	4.500% due 10/19/20 (Þ)	231	241
Oracle Corp.			Reliance Standard Life Global Funding
2.950% due 11/15/24	550	554	II
3.800% due 11/15/37	270	283	2.500% due 01/15/20 (Þ)	425	425
Owens & Minor, Inc.			Reynolds American, Inc.
3.875% due 09/15/21	240	243	6.875% due 05/01/20	190	208
			3.250% due 06/12/20	40	41

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 89

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)					Amounts in thousands (except share amounts)
	Principal		Fair			Principal	Fair
	Amount ($)		Value			Amount ($)	Value
	or Shares		$			or Shares	$
4.450% due 06/12/25		580		618	Teva Pharmaceutical Finance Co. LLC
8.125% due 05/01/40		450		672	6.150% due 02/01/36	609	609
5.850% due 08/15/45		70		87	Thermo Fisher Scientific, Inc.
Reynolds Group Issuer, Inc. / Reynolds					2.950% due 09/19/26	228	221
Group Issuer LLC					Time Warner Cable LLC
5.750% due 10/15/20		81		83	4.125% due 02/15/21	150	154
Rockwell Collins, Inc.					7.300% due 07/01/38	210	263
1.950% due 07/15/19		240		239	5.875% due 11/15/40	120	130
Roper Technologies, Inc.					Time Warner Entertainment Co. , LP
2.800% due 12/15/21		240		240	8.375% due 03/15/23	182	221
Sabine Pass Liquefaction LLC					Time Warner, Inc.
6.250% due 03/15/22		590		656	4.750% due 03/29/21	620	660
5.625% due 04/15/23		223		245	3.800% due 02/15/27	80	80
5.000% due 03/15/27		290		311
					TJX Cos. , Inc. (The)
Santander Holdings USA, Inc.					2.250% due 09/15/26	10	9
2.700% due 05/24/19		221		221
					Toyota Motor Credit Corp.
4.500% due 07/17/25		20		21	1.400% due 05/20/19	249	247
Schlumberger Holdings Corp.					Series GMTN
4.000% due 12/21/25 (Þ)		40		42	2.800% due 07/13/22	245	248
Select Income REIT					Series MTN
4.250% due 05/15/24		290		288	1.610% due 01/09/19 (Ê)	1,200	1,201
Sempra Energy					Transcontinental Gas Pipe Line Co. LLC
1.625% due 10/07/19		226		223	7.850% due 02/01/26	220	281
Sherwin-Williams Co.					Union Pacific Railroad Co. Pass-Through
2.250% due 05/15/20		375		374	Trust
Simon Property Group, LP					Series 06-1
3.375% due 12/01/27		425		427	5.866% due 07/02/30	133	150
South Carolina Electric & Gas Co.					United Parcel Service, Inc.
6.050% due 01/15/38		320		400	2.500% due 04/01/23	780	776
Southern Natural Gas Co. LLC /					3.050% due 11/15/27	370	370
Southern Natural Issuing Corp.					United Rentals NA, Inc.
4.400% due 06/15/21		400		419	5.750% due 11/15/24	60	63
Southwest Airlines Co.					United Technologies Corp.
2.650% due 11/05/20		340		341	3.100% due 06/01/22	100	102
Spectrum Brands, Inc.					4.500% due 06/01/42	30	33
5.750% due 07/15/25		50		53
					UnitedHealth Group, Inc.
Sprint Capital Corp.					3.875% due 10/15/20	10	10
8.750% due 03/15/32		190		216	2.950% due 10/15/27	295	294
Sprint Spectrum Co. LLC / Sprint
Spectrum Co II LLC / Sprint Spectrum					4.625% due 07/15/35	100	116
Co III LLC					5.700% due 10/15/40	60	78
Series A-1					Universal Health Services, Inc.
3.360% due 09/20/21 (Þ)		356		358	4.750% due 08/01/22 (Þ)	253	258
Sunoco Logistics Partners Operations LP					Univision Communications, Inc.
6.850% due 02/15/40		217		243	5.125% due 05/15/23 (Þ)	50	50
Sunoco Logistics Partners Operations,					5.125% due 02/15/25 (Þ)	60	59
LP					US Airways Pass-Through Trust
5.400% due 10/01/47		350		353	Series 2012-1 Class A
Taylor Morrison Communities, Inc. /					5.900% due 10/01/24	502	557
Taylor Morrison Holdings II, Inc.					Series A Class A
5.625% due 03/01/24 (Þ)		100		105	7.125% due 10/22/23	295	339
Teachers Insurance & Annuity
Association of America					US Bancorp
4.900% due 09/15/44 (Þ)		240		274	Series MTN
Tech Data Corp.					1.767% due 04/25/19 (Ê)	1,000	1,003
4.950% due 02/15/27		228		240	US Bank NA
Tennessee Gas Pipeline Co. LLC					Series BKNT
7.000% due 03/15/27		204		243	2.125% due 10/28/19	250	250
8.375% due 06/15/32		380		495	1.505% due 10/23/20 (Ê)	600	600

See accompanying notes which are an integral part of the financial statements.

90 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
USF&G Capital III			4.750% due 12/07/46	150	167
8.312% due 07/01/46 (Þ)	530	797	Series GMTN
Valeant Pharmaceuticals International,			2.600% due 07/22/20	645	649
Inc.			4.300% due 07/22/27	520	554
9.000% due 12/15/25 (Þ)	60	63	4.900% due 11/17/45	250	283
Valero Energy Corp.			Wells Fargo Bank NA
10.500% due 03/15/39	151	258	1.750% due 05/24/19	250	249
VEREIT Operating Partnership LP			Western Gas Partners, LP
4.600% due 02/06/24	229	239	4.000% due 07/01/22	237	242
Verizon Communications, Inc.			4.650% due 07/01/26	40	42
3.500% due 11/01/24	20	20	Westlake Chemical Corp.
3.376% due 02/15/25 (Þ)	705	707	4.875% due 05/15/23	220	227
2.625% due 08/15/26	40	38	Williams Partners, LP
4.125% due 03/16/27	230	240	3.600% due 03/15/22	125	128
5.250% due 03/16/37	80	88	4.300% due 03/04/24	160	168
5.500% due 03/16/47	30	34	3.750% due 06/15/27	450	451
4.522% due 09/15/48	30	30	5.800% due 11/15/43	430	506
4.672% due 03/15/55	1,625	1,566	Wyndham Worldwide Corp.
Viacom, Inc.			4.150% due 04/01/24	220	221
3.875% due 04/01/24	20	20
5.250% due 04/01/44	255	249	Xerox Corp.
			4.070% due 03/17/22	244	246
6.250% due 02/28/57 (Ê)	610	596
					175,954
Virginia Electric & Power Co.			International Debt - 8.4%
Series B			1011778 B. C. Unlimited Liability Co. /
2.950% due 11/15/26	660	653	New Red Finance, Inc.
Series C			5.000% due 10/15/25 (Þ)	50	50
4.000% due 11/15/46	225	241	1011778 B. C. Unlimited Liability Co.
Visa, Inc.			1st Lien Term Loan B4
3.150% due 12/14/25	150	153	3.819% due 02/17/24 (Ê)	150	150
4.300% due 12/14/45	390	443	3.943% due 02/17/24 (Ê)	97	97
Volkswagen Group of America Finance			ABN AMRO Bank NV
LLC			1.800% due 09/20/19 (Þ)	244	242
2.450% due 11/20/19 (Þ)	425	425	Abu Dhabi Government International
Wachovia Capital Trust II			Bond
1.859% due 01/15/27 (Ê)	485	453	2.500% due 10/11/22 (Þ)	200	196
Walgreens Boots Alliance, Inc.			4.125% due 10/11/47 (Þ)	325	321
2.700% due 11/18/19	256	258	Abu Dhabi National Energy Co. PJSC
4.800% due 11/18/44	100	108	5.875% due 12/13/21 (Þ)	224	246
Wal-Mart Stores, Inc.			Actavis Funding SCS
3.250% due 10/25/20	5	5	3.000% due 03/12/20 (Þ)	258	260
6.200% due 04/15/38	10	14	3.450% due 03/15/22	40	41
4.750% due 10/02/43	100	123	3.800% due 03/15/25	60	61
Walt Disney Co. (The)			4.550% due 03/15/35	20	21
1.685% due 06/05/20 (Ê)	800	801	4.750% due 03/15/45	21	22
			ACWA Power Management and
Washington Prime Group, LP			Investments One, Ltd.
5.950% due 08/15/24	221	226	5.950% due 12/15/39 (Þ)	365	374
Waste Management, Inc.
3.500% due 05/15/24	190	197	Alcoa Nederland Holding BV
			6.750% due 09/30/24 (Þ)	200	218
Wells Fargo & Co.
2.500% due 03/04/21	400	400	Alibaba Group Holding, Ltd.
			2.500% due 11/28/19	242	243
2.827% due 03/04/21 (Ê)	1,100	1,130	4.200% due 12/06/47	405	421
4.600% due 04/01/21	220	234
3.069% due 01/24/23	1,150	1,158	Alimentation Couche-Tard, Inc.
2.610% due 10/31/23 (Ê)	1,455	1,493	3.550% due 07/26/27 (Þ)	220	220
3.000% due 04/22/26	400	392	America Movil SAB de CV
3.000% due 10/23/26	260	255	5.000% due 03/30/20	763	804
4.650% due 11/04/44	10	11	Anglo American Capital PLC
4.400% due 06/14/46	230	242	4.125% due 09/27/22 (Þ)	243	251
			3.625% due 09/11/24 (Þ)	200	199

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 91

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
AP Moller - Maersk A/S			Brazilian Government International Bond
2.550% due 09/22/19 (Þ)	171	171	2.625% due 01/05/23	220	212
ArcelorMittal			5.625% due 01/07/41	170	174
6.750% due 02/25/22	110	122	BRF SA
Aristocrat International Pty, Ltd. Term			3.950% due 05/22/23 (Þ)	254	251
Loan B2			British Telecommunications PLC
3.363% due 10/20/21 (Ê)	151	152	9.125% due 12/15/30	30	45
AstraZeneca PLC			Canadian Imperial Bank of Commerce
1.950% due 09/18/19	263	261
2.375% due 11/16/20	580	579	Series YCD
			1.621% due 02/04/19 (Ê)(~)	500	500
2.375% due 06/12/22	490	484	1.807% due 05/29/19 (Ê)(~)	500	500
Australia & New Zealand Banking
Group, Ltd.			Canadian Oil Sands, Ltd.
1.936% due 08/19/20 (Ê)(Þ)	1,000	1,005	7.750% due 05/15/19 (Þ)	450	479
			4.500% due 04/01/22 (Þ)	680	696
Banco de Bogota SA			Carlyle Global Market Strategies CLO,
4.375% due 08/03/27 (Þ)	223	222
Banco Inbursa SA Institucion de Banca			Ltd.
Multiple			Series 2015-2A Class A1
4.375% due 04/11/27 (Þ)	224	224	2.507% due 04/27/27 (Ê)(Þ)	1,400	1,403
Bancolombia SA			CBQ Finance, Ltd.
5.950% due 06/03/21	705	762	7.500% due 11/18/19 (Þ)	205	219
Banistmo SA			CDP Financial, Inc.
3.650% due 09/19/22 (Þ)	250	247	5.600% due 11/25/39 (Þ)	215	284
Bank of Montreal			Cenovus Energy, Inc.
1.500% due 07/18/19	249	247	4.250% due 04/15/27	710	708
2.100% due 12/12/19	230	229	6.750% due 11/15/39	120	145
1.900% due 08/27/21	420	411	Colombia Government International
			Bond
Bank of Nova Scotia (The)			5.625% due 02/26/44	270	309
1.650% due 06/14/19	253	251
			Commonwealth Bank of Australia
2.234% due 06/14/19 (Ê)	1,300	1,309	5.000% due 10/15/19 (Þ)	30	31
Series BKNT			3.900% due 07/12/47 (Þ)	150	153
2.450% due 09/19/22	380	375
Bank of Tokyo-Mitsubishi UFJ, Ltd.			Cooperatieve Rabobank UA
(The)			4.625% due 12/01/23	250	268
2.350% due 09/08/19 (Þ)	242	242	4.375% due 08/04/25	400	422
Barclays Bank PLC			Corp. Andina de Fomento
5.140% due 10/14/20	225	238	2.750% due 01/06/23	825	816
4.375% due 09/11/24	234	240	Credit Agricole SA
4.836% due 05/09/28	1,245	1,296	3.250% due 10/04/24 (Þ)	730	725
BAT International Finance PLC			Credit Suisse
2.750% due 06/15/20 (Þ)	257	258	5.400% due 01/14/20	234	247
BBVA Bancomer SA			Credit Suisse Group AG
6.750% due 09/30/22 (Þ)	681	768	6.250% due 12/31/49 (Ê)(ƒ)(Þ)	505	547
			Credit Suisse Group Funding Guernsey,
Bharti Airtel, Ltd.			Ltd.
4.375% due 06/10/25 (Þ)	500	509	4.875% due 05/15/45	300	344
BHP Billiton Finance USA, Ltd.			Danone SA
2.875% due 02/24/22	5	5	1.691% due 10/30/19 (Þ)	227	224
5.000% due 09/30/43	320	392	2.077% due 11/02/21 (Þ)	690	675
BOC Aviation, Ltd.			Deutsche Bank AG
3.000% due 03/30/20 (Þ)	241	241	2.950% due 08/20/20	242	242
BP Capital Markets PLC			Deutsche Telekom International Finance
3.245% due 05/06/22	10	10	BV
3.216% due 11/28/23	700	715	6.000% due 07/08/19	210	221
3.119% due 05/04/26	120	121	Dryden 34 Senior Loan Fund
Braskem Finance, Ltd.			Series 2017-34A Class AR
5.375% due 05/02/22 (Þ)	236	250	2.519% due 10/15/26 (Ê)(Þ)	1,220	1,226
Braskem Netherlands Finance BV
3.500% due 01/10/23 (Þ)	740	726
4.500% due 01/10/28 (Þ)	305	300

See accompanying notes which are an integral part of the financial statements.

92 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Dryden 37 Senior Loan Fund			Lloyds Banking Group PLC
Series 2017-37A Class AR			2.907% due 11/07/23 (Ê)	650		644
2.775% due 01/15/31 (Ê)(Š)(Å)	1,300	1,300	Lloyds TSB Bank PLC
Dryden 50 Senior Loan Fund			6.500% due 09/14/20 (Þ)	228		249
Series 2017-50A Class A1			Lukoil International Finance BV
2.477% due 07/15/30 (Ê)(Þ)	1,230	1,233	6.125% due 11/09/20 (Þ)	450		485
Ecopetrol SA			4.563% due 04/24/23 (Þ)	212		220
5.375% due 06/26/26	60	65	LyondellBasell Industries NV
5.875% due 05/28/45	250	255	5.000% due 04/15/19	395		406
Empresa Electrica Angamos SA			Macquarie Bank, Ltd.
4.875% due 05/25/29 (Þ)	219	219	6.625% due 04/07/21 (Þ)	220		243
Enbridge, Inc.			Mallinckrodt International Finance SA
3.700% due 07/15/27	222	223	4.750% due 04/15/23	70		55
Ensco PLC			Marks And Spencer PLC
8.000% due 01/31/24	29	29	7.125% due 12/01/37 (Þ)	207		246
Equate Petrochemical BV			Medtronic Global Holdings SCA
4.250% due 11/03/26 (Þ)	200	204	3.350% due 04/01/27	160		164
ESAL GmbH			Mexico Generadora de Energia S de rl
6.250% due 02/05/23 (Þ)	445	423	5.500% due 12/06/32 (Þ)	190		200
GlaxoSmithKline Capital PLC			Mexico Government International Bond
2.850% due 05/08/22	60	61	6.050% due 01/11/40	30		35
HSBC Bank PLC			4.750% due 03/08/44	20		20
7.650% due 05/01/25	375	462	4.600% due 01/23/46	535		528
Series 1M			4.600% due 02/10/48	500		494
1.750% due 06/29/49 (Ê)	780	686	Mitsubishi UFJ Financial Group, Inc.
HSBC Holdings PLC			2.998% due 02/22/22	60		60
3.262% due 03/13/23 (Ê)	600	608	Mitsubishi UFJ Trust and Banking Corp.
3.900% due 05/25/26	220	228	2.450% due 10/16/19 (Þ)	242		242
4.041% due 03/13/28 (Ê)	410	427	Mizuho Bank, Ltd.
Hyundai Capital Services, Inc.			2.450% due 04/16/19 (Þ)	223		223
2.625% due 09/29/20 (Þ)	244	241	2.095% due 10/01/19 (Ê)(~)	500		500
Indonesia Government International			Mondelez International Holdings
Bond			Netherlands BV
4.350% due 01/11/48	240	243	1.625% due 10/28/19 (Þ)	658		649
Series REGS			Myriad International Holdings BV
3.750% due 04/25/22	430	443	6.000% due 07/18/20 (Þ)	206		221
ING Bank NV			4.850% due 07/06/27 (Þ)	250		259
5.800% due 09/25/23 (Þ)	765	859	National Australia Bank, Ltd.
Intesa Sanpaolo Vita SpA			1.726% due 05/14/19 (Ê)(Þ)	650		650
3.125% due 07/14/22 (Þ)	200	199	1.956% due 05/22/20 (Ê)(Þ)	450		452
3.875% due 07/14/27 (Þ)	520	520	National Bank of Canada
Inversiones CMPC SA			1.750% due 05/08/19 (Ê)(~)	650		648
4.500% due 04/25/22 (Þ)	214	224	Newcrest Finance Pty, Ltd.
Itau CorpBanca SA			4.200% due 10/01/22 (Þ)	241		251
3.875% due 09/22/19 (Þ)	218	222	Nokia OYJ
Kia Motors Corp.			6.625% due 05/15/39	740		818
3.000% due 04/25/23 (Þ)	257	252	Nordea Bank AB
KOC Holding AS			1.821% due 02/21/19 (Ê)(~)	800		800
3.500% due 04/24/20 (Þ)	222	222	1.625% due 09/30/19 (Þ)	250		247
Kookmin Bank			1.947% due 05/29/20 (Ê)(Þ)	450		452
1.625% due 08/01/19 (Þ)	200	196	NOVA Chemicals Corp.
Korea Gas Corp.			5.250% due 06/01/27 (Þ)	420		419
2.750% due 07/20/22 (Þ)	510	502	Numericable Group SA Term Loan B12
Kuwait International Government Bond			4.349% due 01/05/26 (Ê)	178		171
3.500% due 03/20/27 (Þ)	210	213	NXP BV / NXP Funding LLC
Lions Gate Entertainment Corp. Term			4.625% due 06/15/22 (Þ)	450		471
Loan B			Oleoducto Central SA
3.819% due 12/08/23 (Ê)	64	64	4.000% due 05/07/21 (Þ)	245		251

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 93

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
			Smurfit Kappa Treasury Funding, Ltd.
Orange SA			7.500% due 11/20/25	200	241
2.750% due 02/06/19	244	245	Sociedad Quimica y Minera de Chile SA
Pernod Ricard SA			5.500% due 04/21/20 (Þ)	236	250
4.450% due 01/15/22 (Þ)	150	159	Southern Copper Corp.
Peru Government International Bond			6.750% due 04/16/40	10	13
6.550% due 03/14/37	10	14	5.250% due 11/08/42	440	491
5.625% due 11/18/50	130	167	Standard Chartered PLC
Petrobras Global Finance BV			5.700% due 03/26/44 (Þ)	450	545
6.250% due 03/17/24	100	106	Sumitomo Mitsui Banking Corp.
5.299% due 01/27/25 (Þ)	1,105	1,109	1.876% due 05/15/19 (Ê)(~)	850	851
Petroleos Mexicanos			2.092% due 10/18/19	253	252
5.375% due 03/13/22 (Þ)	750	795	Sumitomo Mitsui Financial Group, Inc.
6.875% due 08/04/26	220	249	Series 5FXD
6.625% due 06/15/35	10	11	2.058% due 07/14/21	90	88
5.625% due 01/23/46	225	208	Svenska Handelsbanken AB
Province of Quebec Canada			1.795% due 06/07/19 (Ê)(~)	1,000	1,001
1.643% due 07/21/19 (Ê)	480	482	2.250% due 06/17/19	243	243
Provincia de Buenos Aires			Syngenta Finance NV
6.500% due 02/15/23 (Þ)	140	150	3.125% due 03/28/22	264	257
PT Pertamina (Persero)			Talent Yield Investments, Ltd.
4.300% due 05/20/23 (Þ)	520	543	4.500% due 04/25/22 (Þ)	239	250
Reckitt Benckiser Treasury Services PLC			Telefonica Emisiones SAU
2.235% due 06/24/22 (Ê)(Þ)	685	685	5.134% due 04/27/20	270	285
Republic of Argentina Government			Tencent Holdings, Ltd.
International Bond			3.375% due 05/02/19 (Þ)	220	223
5.625% due 01/26/22	340	359
			Teva Pharmaceutical Finance Co. BV
Series WI			2.950% due 12/18/22	40	36
7.500% due 04/22/26	170	192	Teva Pharmaceutical Finance
Republic of Poland Government			Netherlands III BV
International Bond			1.700% due 07/19/19	30	29
5.125% due 04/21/21	400	433	2.800% due 07/21/23	294	256
Royal Bank of Canada			3.150% due 10/01/26	20	17
Series GMTN			Toronto-Dominion Bank (The)
2.125% due 03/02/20	580	578	2.250% due 11/05/19	246	246
2.150% due 03/06/20	246	245	2.125% due 04/07/21	405	401
Royal Bank of Scotland Group PLC			Series MTN
6.400% due 10/21/19	180	192	2.203% due 01/22/19 (Ê)	250	252
6.125% due 12/15/22	70	77
3.875% due 09/12/23	885	900	Trust F/1401
			5.250% due 01/30/26 (Þ)	212	223
5.125% due 05/28/24	220	233
			UBS AG
Santander UK Group Holdings PLC			2.450% due 12/01/20 (Þ)	845	842
2.875% due 10/16/20	251	252
			UBS Group Funding Switzerland AG
3.823% due 11/03/28 (Ê)	725	726	3.491% due 05/23/23 (Þ)	270	274
Santander UK PLC			4.253% due 03/23/28 (Þ)	200	211
2.350% due 09/10/19	252	252	Unitymedia Finance LLC 1st Lien Term
Schlumberger Norge AS			Loan D
4.200% due 01/15/21 (Þ)	70	73	0.000% due 01/15/26 (Ê)(v)	170	170
Seagate HDD Cayman			Vale Overseas, Ltd.
4.250% due 03/01/22 (Þ)	244	247	6.875% due 11/21/36	471	577
Shell International Finance BV			Valeant Pharmaceuticals International,
1.375% due 05/10/19	245	243	Inc.
4.375% due 03/25/20	10	10	6.500% due 03/15/22 (Þ)	20	21
2.875% due 05/10/26	40	40	5.875% due 05/15/23 (Þ)	190	176
4.375% due 05/11/45	250	281	7.000% due 03/15/24 (Þ)	70	75
4.000% due 05/10/46	80	85	Validus Holdings, Ltd.
			8.875% due 01/26/40	424	627
Shire Acquisitions Investments			Virgin Media Bristol LLC 1st Lien Term
1.900% due 09/23/19	815	808
See accompanying notes which are an integral part of the financial statements.			Loan K

94 Strategic Bond Fund

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
0.000% due 01/15/26 (Ê)(v)	147	147	4.319% due 03/01/24 (Ê)	86		86
Vodafone Group PLC			Charter Communications Operating
5.450% due 06/10/19	526	549	Group, Inc. Term Loan B
6.150% due 02/27/37	520	652	0.000% due 04/13/25 (Ê)(v)	230		230
Voya CLO, Ltd.			CityCenter Holdings, LLC Term Loan B
Series 2017-2A Class A1R			4.069% due 04/18/24 (Ê)	22		23
2.408% due 04/17/30 (Ê)(Å)	1,428	1,438	CSC Holdings, LLC 1st Lien Term Loan
Westpac Banking Corp.			3.741% due 07/17/25 (Ê)	165		164
1.600% due 08/19/19	249	246	CWGS Group LLC Term Loan
			4.392% due 11/08/23 (Ê)	69		70
Woori Bank			Dell International LLC 1st Lien Term
5.875% due 04/13/21 (Þ)	232	251
Ziggo Secured Finance Partnership 1st			Loan A2
			3.320% due 09/07/21 (Ê)	156		156
Lien Term Loan E			Dell International LLC 1st Lien Term
3.977% due 04/27/25 (Ê)	56	56	Loan B
		76,372	3.570% due 09/07/23 (Ê)	110		110
Loan Agreements - 1.0%			First Data Corp. 1st Lien Term Loan
Air Medical Group Holdings, Inc. 1st			3.802% due 04/26/24 (Ê)	248		248
Lien Term Loan B
4.943% due 04/28/22 (Ê)	98	98	Golden Nugget, Inc. 1st Lien Term Loan
Air Medical Group Holdings, Inc. 1st			4.656% due 10/04/23 (Ê)	107		108
Lien Term Loan B1			4.857% due 10/04/23 (Ê)	141		142
5.675% due 04/28/22 (Ê)	60	60	HCA, Inc. Term Loan B8
Albertson's LLC Term Loan B4			3.819% due 02/15/24 (Ê)	189		190
4.319% due 08/25/21 (Ê)	69	67	Hilton Worldwide Finance LLC Term
			Loan B2
Albertson's LLC Term Loan B6			3.552% due 10/25/23 (Ê)	253		254
4.462% due 06/22/23 (Ê)	164	160
			Jaguar Holding Co. II Term Loan
American Airlines, Inc. 2017 Term Loan			4.319% due 08/18/22 (Ê)	117		117
3.477% due 12/14/23 (Ê)	50	49	4.443% due 08/18/22 (Ê)	130		130
American Airlines, Inc. Term Loan B
3.552% due 06/27/20 (Ê)	198	199	Level 3 Financing, Inc. Term Loan B
American Axle & Manufacturing, Inc.			3.696% due 02/22/24 (Ê)	250		250
			MA Finance Co. LLC 1st Lien Term
1st Lien Term Loan B			Loan B
3.620% due 04/06/24 (Ê)	12	12	4.319% due 06/21/24 (Ê)	4		4
3.810% due 04/06/24 (Ê)	12	12
American Builders & Contractors Supply			MacDermid, Inc. Term Loan B6
Co. , Inc. Term Loan B			4.569% due 06/07/23 (Ê)	414		417
4.069% due 10/31/23 (Ê)	249	250	MGM Growth Properties Operating
			Partnership, LP Term Loan B
Avolon LLC Term Loan B			3.819% due 04/25/23 (Ê)	245		246
3.751% due 03/20/22 (Ê)	249	247
Beacon Roofing Supply, Inc. Term Loan			Michaels Stores, Inc. Term Loan B1
B			4.210% due 01/28/23 (Ê)	73		73
0.000% due 01/02/25 (Ê)(v)	251	252	4.251% due 01/28/23 (Ê)	13		13
Berry Plastics Global, Inc. 1st Lien Term			4.319% due 01/28/23 (Ê)	195		195
Loan N			MultiPlan, Inc. Term Loan B
0.000% due 01/19/24 (Ê)(v)	35	35	4.693% due 05/25/23 (Ê)	239		239
Berry Plastics Group, Inc  Term Loan M			ON Semiconductor Corp 1st Lien Term
3.682% due 10/01/22 (Ê)	83	83	Loan B2
3.819% due 10/01/22 (Ê)	129	129	0.000% due 03/31/23 (Ê)(v)	56		56
Boyd Gaming Corp. Term Loan B			Party City Holdings, Inc. Term Loan
3.975% due 09/15/23 (Ê)	93	93	4.380% due 08/19/22 (Ê)	120		121
Caesars Resort Collection LLC 1st Lien			4.580% due 08/19/22 (Ê)	51		51
Term Loan B			4.700% due 08/19/22 (Ê)	11		11
0.000% due 09/27/24 (Ê)(v)	158	158	Petco Animal Supplies, Inc. 1st Lien
Catalent Pharma Solutions, Inc. Term			Term Loan B1
Loan B			4.380% due 01/26/23 (Ê)	118		89
3.819% due 05/20/21 (Ê)	187	188	PetSmart, Inc. Term Loan B2
CenturyLink, Inc. Term Loan B			4.570% due 03/10/22 (Ê)	193		154
4.319% due 01/31/25 (Ê)	205	198	Post Holdings, Inc. Incremental Term
Change Healthcare Holdings LLC 1st			Loan
Lien Term Loan B			3.820% due 05/24/24 (Ê)	261		261

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 95

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Prime Security Services Borrower LLC			4.101% due 11/15/34 (Ê)(Þ)	1,372	1,372
Term Loan B1			Bayview Commercial Asset Trust
4.319% due 05/02/22 (Ê)	248	250
Quikrete Holdings, Inc. 1st Lien Term			Series 2007-2A Class A1
Loan B			1.507% due 07/25/37 (Ê)(Þ)	1,307	1,248
4.319% due 11/15/23 (Ê)	164	164	BCAP LLC Trust
Reynolds Group Holdings, Inc. 1st Lien			Series 2010-RR7 Class 3A12
Term Loan B			2.798% due 08/26/35 (~)(Ê)(Þ)	976	813
4.319% due 02/05/23 (Ê)	229	230	Series 2011-R11 Class 15A1
RPI Finance Trust Term Loan B			3.400% due 10/26/33 (~)(Ê)(Å)	137	139
3.693% due 03/27/23 (Ê)	185	185	Series 2011-R11 Class 20A5
Scientific Games International, Inc. 1st			3.069% due 03/26/35 (~)(Ê)(Þ)	63	63
Lien Term Loan B4			Bear Stearns Adjustable Rate Mortgage
4.673% due 08/14/24 (Ê)	223	224	Trust
4.819% due 08/14/24 (Ê)	61	61	Series 2005-2 Class A1
Seattle SpinCo, Inc. Term Loan B3			3.260% due 03/25/35 (Ê)	153	154
4.319% due 06/21/24 (Ê)	27	27	Bear Stearns Alternative-A Trust
Sinclair Television Group, Inc. Term			Series 2005-2 Class 1M1
Loan B			1.342% due 03/25/35 (Ê)	900	845
0.000% due 05/10/24 (Ê)(v)	110	110
Sprint Communications, Inc. 1st Lien			Series 2005-4 Class 24A1
Term Loan B			3.631% due 05/25/35 (~)(Ê)	400	413
4.125% due 02/02/24 (Ê)	17	17	Bear Stearns ARM Trust
Staples, Inc. 1st Lien Term Loan			Series 2004-3 Class 2A
5.488% due 09/12/24 (Ê)	75	73	3.063% due 07/25/34 (~)(Ê)	194	196
SunGard Availability Services Capital,			Bear Stearns Commercial Mortgage
Inc. Term Loan B			Securities Trust
8.569% due 09/17/21 (Ê)	393	361	Series 2007-T26 Class AM
Trans Union LLC 1st Lien Term Loan B3			5.513% due 01/12/45 (~)(Ê)	147	150
3.569% due 04/09/23 (Ê)	232	233	BXP Trust
Univision Communications, Inc. Term			Series 2017-GM Class A
Loan C5			3.379% due 06/13/39 (Þ)	416	425
4.319% due 03/15/24 (Ê)	246	245	CFCRE Commercial Mortgage Trust
UPC Financing Partnership 1st Lien
Term Loan AR			Series 2016-C3 Class A3
3.977% due 01/15/26 (Ê)	245	245	3.865% due 01/10/48	1,150	1,205
XPO Logistics, Inc. Term Loan B			CHL Mortgage Pass-Through Trust
3.599% due 11/01/21 (Ê)	195	196	Series 2005-3 Class 1A2
Zebra Technologies Corp. Term Loan B			0.815% due 04/25/35 (Ê)	10	9
3.371% due 10/27/21 (Ê)	66	66	Citigroup Commercial Mortgage Trust
			Series 2013-375P Class A
Mortgage-Backed Securities - 21.8%		9,185	3.251% due 05/10/35 (Þ)	380	387
			Series 2015-GC29 Class C
A10 Securitization LLC			4.293% due 04/10/48 (~)(Ê)	100	98
Series 2017-AA Class B1
0.071% due 05/15/36 (Þ)	961	949	Citigroup Mortgage Loan Trust, Inc.
American Home Mortgage Investment			Series 2005-2 Class 1A2A
Trust			3.431% due 05/25/35 (~)(Ê)	498	513
Series 2004-4 Class 4A			Series 2005-11 Class A2A
3.661% due 02/25/45 (Ê)	22	23	2.930% due 10/25/35 (Ê)	10	10
Banc of America Commercial Mortgage			Series 2006-AR9 Class 1M1
Trust			0.865% due 11/25/36 (Ê)	1,060	895
Series 2007-2 Class AJ			Series 2007-AR8 Class 2A1A
5.634% due 04/10/49 (~)(Ê)	56	42	3.534% due 07/25/37 (~)(Ê)	212	196
Banc of America Funding Trust			Series 2015-2 Class 5A1
Series 2005-D Class A1			0.444% due 03/25/47 (Ê)(Þ)	357	350
3.413% due 05/25/35 (~)(Ê)	523	544	Cold Storage Trust
Series 2006-6 Class 2A1			Series 2017-ICE3 Class D
6.000% due 08/25/36	1,072	1,045	3.094% due 04/15/24 (Ê)(Þ)	510	512
Barclays Commercial Mortgage			Commercial Mortgage Trust
Securities LLC			Series 2013-300P Class A1
Series 2017-GLKS Class E

See accompanying notes which are an integral part of the financial statements.

96 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
4.353% due 08/10/30 (Þ)	390	418	6.000% due 2032	34	38
Series 2013-CR6 Class B			3.000% due 2033	1,218	1,245
3.397% due 03/10/46 (Þ)	211	210	3.500% due 2033	930	968
Series 2013-CR9 Class ASB			5.000% due 2033	7	7
3.834% due 07/10/45	840	872	3.500% due 2034	197	205
Series 2014-277P Class A			5.500% due 2034	24	27
3.732% due 08/10/49 (Ê)(Þ)	410	426	4.500% due 2035	559	602
Series 2014-UBS4 Class A1			5.500% due 2037	158	175
1.309% due 08/10/47	100	99	5.500% due 2038	627	694
Series 2015-LC19 Class A4			6.000% due 2039	61	68
3.183% due 02/10/48	191	193	4.000% due 2040	362	386
Series 2015-LC19 Class B			5.500% due 2040	783	870
3.829% due 02/10/48 (~)(Ê)	100	101	6.000% due 2040	180	203
Series 2016-GCT Class A			4.000% due 2041	621	659
2.681% due 08/10/29 (Þ)	140	140	6.000% due 2041	193	217
Countrywide Alternative Loan Trust			3.000% due 2042	712	716
Series 2007-16CB Class 1A5			3.500% due 2043	1,398	1,441
1.171% due 08/25/37 (Ê)	569	451	4.000% due 2044	1,228	1,305
Credit Suisse Mortgage Capital			3.500% due 2045	1,923	1,981
Certificates			3.000% due 2046	645	646
Series 2017-CHOP Class G			4.000% due 2046	2,085	2,201
6.847% due 07/15/32 (Ê)(Þ)	600	599	4.500% due 2046	653	709
CSAIL Commercial Mortgage Trust			3.000% due 2047	761	763
Series 2015-C4 Class E			3.500% due 2047	698	717
3.585% due 11/15/48 (~)(Ê)	500	372	4.000% due 2047	4,538	4,753
CSMC Mortgage-Backed Trust			4.500% due 2047	2,568	2,735
Series 2011-4R Class 5A1			3.500% due 2048	700	720
3.588% due 05/27/36 (~)(Ê)(Å)	65	65	4.000% due 2056	1,396	1,468
DBJPM Mortgage Trust			4.500% due 2056	371	399
Series 2016-C3 Class A5			5.500% due 2056	361	401
2.890% due 09/10/49	240	237	3.500% due 2057	1,060	1,087
Deutsche Mortgage Securities, Inc. Re-			15 Year TBA(Ï)
REMIC Trust			3.000%	2,300	2,343
Series 2007-WM1 Class A1			3.500%	900	929
4.078% due 06/27/37 (~)(Ê)(Þ)	595	604	30 Year TBA(Ï)
Fannie Mae			2.500%	1,415	1,365
3.950% due 2020	405	419
4.000% due 2020	192	198	3.000%	15,895	15,877
5.500% due 2020	6	6	3.500%	12,290	12,613
4.250% due 2021	395	418	4.000%	1,900	2,028
4.283% due 2021	559	588	Class 1M2
2.500% due 2022	319	320	6.138% due 11/25/24 (Ê)	1,046	1,197
5.500% due 2022	41	42	4.726% due 01/25/29 (Ê)	50	57
			Fannie Mae Connecticut Avenue
2.000% due 2023	1,141	1,134	Securities
2.500% due 2024	517	520
4.500% due 2024	6	6	Series 2016-C06 Class 1M1
			2.538% due 04/25/29 (Ê)	1,262	1,276
4.000% due 2025	169	176
4.500% due 2025	228	240	Fannie Mae REMIC Trust
4.000% due 2026	163	169	Series 2004-W5 Class A1
6.000% due 2026	50	56	6.000% due 02/25/47	195	219
2.500% due 2027	388	390	Fannie Mae REMICS
2.940% due 2027	100	100	Series 1999-56 Class Z
4.500% due 2027	89	90	7.000% due 12/18/29	14	15
6.000% due 2027	31	35	Series 2005-24 Class ZE
2.560% due 2028	370	357	5.000% due 04/25/35	279	303
3.500% due 2030	172	178	Series 2009-96 Class DB
2.600% due 2031	375	359	4.000% due 11/25/29	220	230
5.000% due 2031	155	167	Series 2012-35 Class SC

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 97

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Interest Only STRIP			4.500% due 2034	199	214
4.948% due 04/25/42 (Ê)	30	6	5.500% due 2038	449	507
Series 2012-55 Class PC			6.000% due 2038	93	106
3.500% due 05/25/42	700	719	5.000% due 2040	297	324
Series 2013-54 Class BS			4.000% due 2041	1,528	1,629
Interest Only STRIP			4.500% due 2041	292	313
4.918% due 06/25/43 (Ê)	132	26	5.500% due 2041	301	335
Series 2013-124 Class SB			3.500% due 2043	1,175	1,218
Interest Only STRIP			4.000% due 2044	715	756
4.712% due 12/25/43 (Ê)	144	27	3.500% due 2045	2,044	2,114
Series 2016-23 Class ST			4.000% due 2045	1,806	1,895
Interest Only STRIP			3.500% due 2046	2,250	2,314
5.547% due 11/25/45 (Ê)	487	95	4.000% due 2046	2,318	2,438
Series 2016-61 Class BS			4.500% due 2046	399	426
			3.000% due 2047	755	759
Interest Only STRIP			3.500% due 2047	4,684	4,821
5.613% due 09/25/46 (Ê)	448	66
			4.000% due 2047	5,583	5,848
Series 2017-6 Class PA
3.500% due 06/25/46	1,940	1,981	30 Year TBA(Ï)
			3.000%	900	901
Series 2017-76 Class SB			3.500%	1,800	1,849
Interest Only STRIP			4.000%	2,600	2,721
4.862% due 10/25/57 (Ê)	475	87	Freddie Mac Multifamily Structured
Series 2017-85 Class SC			Pass-Through Certificates
Interest Only STRIP			Series 2013-K024 Class A2
4.963% due 11/25/47 (Ê)	96	17	2.573% due 09/25/22	1,530	1,539
Fannie Mae-Aces			Series 2013-K029 Class A2
Series 2014-M1 Class A1			3.320% due 02/25/23 (~)(Ê)	1,450	1,507
2.325% due 07/25/23 (~)(Ê)	89	89	Series 2015-K045 Class A2
Series 2014-M13 Class AB2			3.023% due 01/25/25	1,020	1,042
2.951% due 08/25/24 (~)(Ê)	398	400	Series 2015-K046 Class A2
Series 2015-M11 Class A1			3.205% due 03/25/25	400	413
2.097% due 04/25/25	425	421	Series 2015-K049 Class A2
Series 2016-M2 Class ABV2			3.010% due 08/25/25	1,470	1,496
2.131% due 01/25/23	587	578	Series 2016-K052 Class A2
Series 2016-M3 Class ASQ2			3.151% due 11/25/25	1,110	1,140
2.263% due 02/25/23	895	888	Series 2016-K053 Class A2
Series 2016-M6 Class AB2			2.995% due 12/25/25	390	396
2.395% due 05/25/26	1,015	978	Series 2016-K058 Class X1
Series 2016-M7 Class A2			Interest Only STRIP
2.499% due 09/25/26	210	204	0.930% due 08/25/26 (~)(Ê)	4,143	279
Series 2016-M7 Class AV2			Series 2016-KF15 Class A
2.157% due 10/25/23	2,035	1,997	1.204% due 02/25/23 (Ê)	1,764	1,771
Series 2017-M15 Class ATS2			Series 2016-KF17 Class A
3.136% due 11/25/27 (~)(Ê)	20	20	1.084% due 03/25/23 (Ê)	1,050	1,053
FDIC Trust			Freddie Mac Reference REMIC
Series 2010-R1 Class A			Series 2006-R006 Class ZA
2.184% due 05/25/50 (Å)	264	265	6.000% due 04/15/36	371	412
First Horizon Mortgage Pass-Through
Trust			Freddie Mac REMICS
			Series 2003-2624 Class QH
Series 2005-AR4 Class 2A1			5.000% due 06/15/33	100	108
3.142% due 10/25/35 (~)(Ê)	369	352
			Series 2006-R007 Class ZA
Flagstar Mortgage Trust			6.000% due 05/15/36	318	353
Series 2017-2 Class A5
3.500% due 10/25/47 (~)(Ê)(Þ)	1,177	1,190	Series 2009-3569 Class NY
			5.000% due 08/15/39	1,400	1,494
Freddie Mac
4.500% due 2020	899	912	Series 2010-3632 Class PK
2.000% due 2028	1,545	1,513	5.000% due 02/15/40	213	231
3.500% due 2030	147	152	Series 2010-3653 Class B
			4.500% due 04/15/30	301	322

See accompanying notes which are an integral part of the financial statements.

98 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Series 2011-3973 Class SA			3.369% due 06/10/28 (Þ)	393	403
Interest Only STRIP			GS Mortgage Securities Trust
5.331% due 12/15/41 (Ê)	454	86	Series 2012-GCJ7 Class A4
Series 2012-4010 Class KM			3.377% due 05/10/45	1,176	1,203
3.000% due 01/15/42	152	153	Series 2013-GC14 Class AAB
Series 2013-4233 Class MD			3.817% due 08/10/46	470	488
1.750% due 03/15/25	99	99	Series 2013-GC14 Class AS
Freddie Mac Strips			4.507% due 08/10/46 (Þ)	235	251
Series 2012-271 Class 30			Series 2015-GS1 Class C
3.000% due 08/15/42	1,064	1,070	4.570% due 11/10/48 (~)(Ê)	180	184
Series 2014-334 Class S7			Series 2016-GS2 Class A4
Interest Only STRIP			3.050% due 05/10/49	1,342	1,339
5.592% due 08/15/44 (Ê)	214	42	Series 2017-SLP Class E
Series 2016-353 Class S1			4.591% due 10/10/32 (~)(Ê)(Þ)	120	116
Interest Only STRIP			Hilton USA Trust
4.773% due 12/15/46 (Ê)	92	18	Series 2016-HHV Class D
Freddie Mac Structured Agency Credit			4.194% due 11/05/38 (~)(Ê)(Þ)	1,240	1,228
Risk Debt Notes			Series 2016-HHV Class E
Series 2015-DN1 Class M3			4.194% due 11/05/38 (~)(Ê)(Å)	600	547
4.331% due 01/25/25 (Ê)	1,063	1,150	Series 2016-SFP Class A
Series 2015-DNA2 Class M2			2.828% due 11/05/35 (Þ)	226	223
3.838% due 12/25/27 (Ê)	522	533	HMH Trust
Series 2017-DNA1 Class M2			Series 2017-NSS Class E
4.484% due 07/25/29 (Ê)	740	793	6.292% due 07/05/31 (Þ)	1,170	1,155
Series 2017-DNA2 Class B1			Hyatt Hotel Portfolio Trust
6.144% due 10/25/29 (Ê)	510	568	Series 2017-HYT2 Class C
Series 2017-DNA2 Class M1			2.289% due 08/09/20 (Ê)(Þ)	789	785
2.438% due 10/25/29 (Ê)	386	392
Freddie Mac Whole Loan Securities			IndyMac Mortgage Loan Trust
Trust			Series 2007-FLX3 Class A1
			1.474% due 06/25/37 (Ê)	289	284
Series 2016-SC01 Class M1			JPMBB Commercial Mortgage Securities
3.854% due 07/25/46 (~)(Ê)	158	156	Trust
Ginnie Mae			Series 2013-C14 Class D
Series 2012-135 Class IO			4.563% due 08/15/46 (~)(Ê)(Þ)	560	507
Interest Only STRIP			JPMDB Commercial Mortgage Securities
0.611% due 01/16/53 (~)(Ê)	1,992	70	Trust
Series 2016-21 Class ST			Series 2017-C5 Class B
Interest Only STRIP			4.009% due 03/15/50 (~)(Ê)	150	154
5.638% due 02/20/46 (Ê)	308	61	Series 2017-C5 Class C
Series 2016-51 Class NS			4.512% due 03/15/50 (~)(Ê)	220	228
Interest Only STRIP			JPMorgan Chase Commercial Mortgage
5.518% due 04/20/46 (Ê)	152	27	Securities Trust
Ginnie Mae I			Series 2004-LN2 Class B
2.140% due 2023	464	451	5.466% due 07/15/41 (~)(Ê)	150	134
Ginnie Mae II			Series 2015-MAR7 Class E
3.000% due 2047	1,895	1,914	5.962% due 06/05/32 (Þ)	500	504
3.500% due 2047	398	413	Series 2016-NINE Class A
			2.854% due 10/06/38 (~)(Ê)(Þ)	394	386
30 Year TBA(Ï)
3.000%	4,100	4,137	JPMorgan Mortgage Trust
3.500%	3,600	3,725	Series 2015-3 Class A5
4.000%	600	626	3.500% due 05/25/45 (~)(Ê)(Þ)	422	428
Ginnie Mae REMICS			Series 2016-4 Class A5
Series 2013-53 Class OI			3.500% due 10/25/46 (~)(Ê)(Þ)	488	495
Interest Only STRIP			Series 2017-1 Class A4
3.500% due 04/20/43	1,068	174	3.500% due 01/25/47 (~)(Ê)(Þ)	492	499
Grace Mortgage Trust			Series 2017-2 Class A5
			3.500% due 05/25/47 (~)(Ê)(Þ)	554	562
Series 2014-GRCE Class A
			Series 2017-3 Class 1A5

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 99

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
3.500% due 08/25/47 (~)(Ê)(Þ)	1,085	1,099	RBS Commercial Funding, Inc. Trust
Series 2017-4 Class A5			Series 2013-GSP Class A
3.500% due 11/25/47 (~)(Ê)(Þ)	1,198	1,213	3.961% due 01/13/32 (~)(Ê)(Þ)	200	207
LB-UBS Commercial Mortgage Trust			Residential Accredit Loans, Inc.
Series 2005-C7 Class F			Series 2006-QO7 Class 2A1
5.350% due 11/15/40 (~)(Ê)	405	415	1.464% due 09/25/46 (Ê)	1,281	1,109
Series 2007-C6 Class AM			Residential Asset Securitization Trust
6.114% due 07/15/40 (~)(Ê)	179	179	Series 2003-A15 Class 1A2
ML-CFC Commercial Mortgage Trust			1.684% due 02/25/34 (Ê)	25	23
Series 2007-5 Class AJ			Sequoia Mortgage Trust
5.450% due 08/12/48 (~)(Ê)	278	212	Series 2013-6 Class A2
Series 2007-5 Class AJFL			3.000% due 05/25/43 (~)(Ê)	704	701
5.450% due 08/12/48 (~)(Ê)(Þ)	277	212	Series 2015-1 Class A1
Morgan Stanley Bank of America Merrill			3.500% due 01/25/45 (~)(Ê)(Þ)	714	722
Lynch Trust			SG Commercial Mortgage Securities
Series 2015-C24 Class A4			Trust
3.732% due 05/15/48	835	875	Series 2016-C5 Class A4
Series 2015-C26 Class A3			3.055% due 10/10/48	475	468
3.211% due 10/15/48	875	879	Structured Adjustable Rate Mortgage
Series 2016-C31 Class A1			Loan Trust
1.511% due 11/15/21	348	342	Series 2006-5 Class 3A
			3.101% due 06/25/36 (~)(Ê)	1,507	1,256
Morgan Stanley Capital I Trust			Washington Mutual Mortgage Pass-
Series 2007-T27 Class B			Through Certificates Trust
5.915% due 06/11/42 (~)(Ê)(Þ)	1,104	1,206	Series 2003-AR7 Class A7
Series 2011-C1 Class A3			3.130% due 08/25/33 (~)(Ê)	93	94
4.700% due 09/15/47 (Þ)	41	41	Series 2005-10 Class 3CB1
Series 2011-C3 Class A4			6.000% due 11/25/35	1,144	1,076
4.118% due 07/15/49	115	120	Series 2005-AR9 Class A1A
Series 2015-MS1 Class A4			1.164% due 07/25/45 (Ê)	445	444
3.779% due 05/15/48 (~)(Ê)	200	210	Series 2005-AR11 Class A1A
Series 2016-UBS9 Class A4			0.844% due 08/25/45 (Ê)	324	324
3.594% due 03/15/49	205	212
Morgan Stanley Mortgage Capital			Series 2006-AR1 Class 2A1A
Holdings LLC Trust			1.577% due 01/25/46 (Ê)	538	538
Series 2017-237P Class D			Wells Fargo Commercial Mortgage Trust
3.865% due 09/13/39 (Þ)	793	769	Series 2016-BNK1 Class A3
Series 2017-237P Class XA			2.652% due 08/15/49	460	445
Interest Only STRIP			Series 2016-C37 Class C
0.343% due 09/13/39 (~)(Ê)(Þ)	8,761	272	4.495% due 12/15/49 (~)(Ê)	150	154
Series 2017-237P Class XB			Series 2017-RB1 Class XA
Interest Only STRIP			Interest Only STRIP
0.051% due 09/13/39 (~)(Ê)(Þ)	5,418	44	1.288% due 03/15/50 (~)(Ê)	1,975	183
			Wells Fargo Mortgage Backed Securities
MSCG Trust			Trust
Series 2015-ALDR Class A2			Series 2004-P Class 2A1
3.577% due 06/07/35 (~)(Ê)(Þ)	255	251	2.994% due 09/25/34 (~)(Ê)	155	159
Nomura Resecuritization Trust			Series 2006-AR2 Class 2A1
Series 2015-4R Class 1A14			3.257% due 03/25/36 (~)(Ê)	70	71
0.590% due 03/26/47 (Ê)(Þ)	1,290	862	WFRBS Commercial Mortgage Trust
One Market Plaza Trust			Series 2014-C19 Class A3
Series 2017-1MKT Class A			3.660% due 03/15/47	500	513
3.614% due 02/10/32 (Þ)	370	381	Series 2014-C24 Class D
Series 2017-1MKT Class C			3.692% due 11/15/47 (Þ)	280	192
4.016% due 02/10/32 (Þ)	217	223	WinWater Mortgage Loan Trust
Series 2017-1MKT Class D			Series 2014-1 Class A1
4.146% due 02/10/32 (Þ)	400	405	3.918% due 06/20/44 (~)(Ê)(Þ)	762	782
Series 2017-1MKT Class E			Worldwide Plaza Trust
4.142% due 02/10/32 (Å)	595	585	Series 2017-WWP Class A

See accompanying notes which are an integral part of the financial statements.

100 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)					Amounts in thousands (except share amounts)
		Principal		Fair			Principal		Fair
	Amount ($)			Value		Amount ($)			Value
		or Shares		$			or Shares		$
3.526% due 11/10/36 (Þ)			452	464	Series 0515
				197,929	3.759% due 03/15/19	MYR		110	27
					Series 0613
					3.889% due 07/31/20	MYR		230	58
Municipal Bonds - 0.4%
Municipal Electric Authority of Georgia					Series 0902
Revenue Bonds					4.378% due 11/29/19	MYR		220	56
6.637% due 04/01/57			750	961	Mexican Bonos
7.055% due 04/01/57			325	401	Series M 20
Tender Option Bond Trust Receipts					10.000% due 12/05/24	MXN		630	36
/ Certificates General Obligation					7.500% due 06/03/27	MXN		6,762	340
Unlimited					Series M 30
1.750% due 08/01/49 (~)(Ê)(Þ)			500	500	10.000% due 11/20/36	MXN		19,569	1,215
Tender Option Bond Trust Receipts /					8.500% due 11/18/38	MXN		9,100	496
Certificates Revenue Bonds
2.250% due 10/29/27 (~)(Ê)(Þ)			1,400	1,400	Series M
					6.500% due 06/10/21	MXN		740	36
				3,262	7.750% due 05/29/31	MXN		2,940	150
Non-US Bonds - 3.6%					7.750% due 11/13/42	MXN		38,400	1,941
Australia Government International					New Zealand Government International
Bond					Bond
Series 126					Series 0423
4.500% due 04/15/20	AUD		2,330	1,917	5.500% due 04/15/23	NZD		1,710	1,407
Series 133					Series 0427
5.500% due 04/21/23	AUD		990	892	4.500% due 04/15/27	NZD		670	543
Series 140					Series 0521
4.500% due 04/21/33	AUD		1,040	970	6.000% due 05/15/21	NZD		3,120	2,493
Brazil Notas do Tesouro Nacional					Series 0925
Series NTNB					2.000% due 09/20/25	NZD		410	322
6.000% due 05/15/45	BRL		334	331	Norway Government International Bond
Series NTNF					Series 473
10.000% due 01/01/21	BRL		3,975	1,234	4.500% due 05/22/19 (Þ)	NOK		5,290	680
10.000% due 01/01/23	BRL		4,145	1,265
10.000% due 01/01/25	BRL		3,370	1,015	Series 477
					1.750% due 03/13/25 (Þ)	NOK		1,250	156
10.000% due 01/01/27	BRL		165	49
					Peru Government International Bond
Colombian TES					5.700% due 08/12/24	PEN		3,740	1,244
Series B					6.900% due 08/12/37	PEN		2,670	926
10.000% due 07/24/24	COP	6,809,400		2,750	Republic of Argentina Government
6.000% due 04/28/28	COP		703,400	226	International Bond
Ireland Government International Bond					18.200% due 10/03/21	ARS		5,600	322
5.400% due 03/13/25	EUR		1,220	1,977	Series POM
Japan Government 10 Year International					28.750% due 06/21/20 (Ê)	ARS		450	26
Bond					Republic of Poland Government
Series 348					International Bond
10.000% due 09/20/27	JPY		73,350	655	Series 0421
Malaysia Government International Bond					2.000% due 04/25/21	PLN		1,070	305
Series 0111					Series 1020
4.160% due 07/15/21	MYR		150	38	5.250% due 10/25/20	PLN		920	288
Series 0114					Series 1021
4.181% due 07/15/24	MYR		540	135	5.750% due 10/25/21	PLN		1,050	340
Series 0116					Series 1023
3.800% due 08/17/23	MYR		3,100	766	4.000% due 10/25/23	PLN		840	257
Series 0215					Russian Federal Bond - OFZ
3.795% due 09/30/22	MYR		1,220	302	Series 6207
Series 0314					8.150% due 02/03/27	RUB		48,740	891
4.048% due 09/30/21	MYR		610	153	Series 6219
Series 0315					7.750% due 09/16/26	RUB		31,660	562
3.659% due 10/15/20	MYR		1,274	318	Singapore Government International
Series 0414					Bond
3.654% due 10/31/19	MYR		1,060	264	1.625% due 10/01/19	SGD		90	67

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 101

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)					Amounts in thousands (except share amounts)
		Principal		Fair			Principal		Fair
		Amount ($)		Value		Amount ($)			Value
		or Shares		$			or Shares		$
2.000% due 07/01/20	SGD		350	264	2.125% due 11/30/24		490		483
2.250% due 06/01/21	SGD		540	411	2.250% due 12/31/24		1,510		1,514
1.250% due 10/01/21	SGD		250	184	2.000% due 08/15/25		4,745		4,625
3.125% due 09/01/22	SGD		290	230	1.625% due 05/15/26		3,000		2,825
2.750% due 07/01/23	SGD		470	368	2.250% due 02/15/27		2,930		2,891
3.000% due 09/01/24	SGD		380	303	2.250% due 08/15/27		8,940		8,812
2.375% due 06/01/25	SGD		400	307	1.625% due 11/15/27		1,840		1,737
2.125% due 06/01/26	SGD		120	91	2.250% due 11/15/27		8,475		8,353
3.500% due 03/01/27	SGD		340	286	5.250% due 02/15/29		1,245		1,585
				32,885	6.250% due 05/15/30		600		843
United States Government Treasuries - 28.4%					4.625% due 02/15/40		1,185		1,574
United States Treasury Inflation Indexed					2.750% due 08/15/42		2,185		2,198
Bonds					2.750% due 11/15/42		2,210		2,222
2.125% due 01/15/19			7,864	8,027	3.750% due 11/15/43		60		71
0.125% due 04/15/22			2,160	2,146	2.500% due 02/15/45		5,300		5,047
0.375% due 07/15/23			5,554	5,598	3.000% due 05/15/45		815		855
0.375% due 07/15/25			2,210	2,215	3.000% due 11/15/45		2,725		2,859
0.375% due 07/15/27			1,674	1,666	2.500% due 05/15/46		1,200		1,140
3.875% due 04/15/29			3,601	4,913	2.875% due 11/15/46		685		702
2.125% due 02/15/40			2,750	3,583	3.000% due 02/15/47		5,720		6,009
1.040% due 02/15/46			1,176	1,259	3.000% due 05/15/47		1,900		1,995
United States Treasury Notes					2.750% due 08/15/47 (§)		10,235		10,236
1.000% due 03/15/19			10,000	9,899	2.250% due 11/15/47		2,350		2,117
1.500% due 03/31/19			1,125	1,120	2.750% due 11/15/47		520		520
0.875% due 04/15/19			1,300	1,284					257,311
1.625% due 06/30/19			9,400	9,367	Total Long-Term Investments
1.500% due 10/31/19			6,780	6,733
1.250% due 02/29/20			10,053	9,915	(cost $805,468)				808,842
3.500% due 05/15/20			1,415	1,467
8.750% due 05/15/20			828	960
2.625% due 08/15/20			1,360	1,384	Options Purchased - 0.0%
2.125% due 08/31/20			520	522	(Number of Contracts)
1.375% due 09/30/20			11,250	11,078	EURIBOR 1 Year Mid-
2.625% due 11/15/20			2,240	2,280	Curve Options
2.000% due 11/30/20			650	651	Merrill Lynch Mar 2018 97.75
2.375% due 12/31/20			1,422	1,438	Put (38)	USD	9,286	(ÿ)	6
2.125% due 01/31/21			1,453	1,458	Merrill Lynch Feb 2018 97.88 Put
3.625% due 02/15/21			2,490	2,611	(25)	USD	6,117	(ÿ)	7
2.000% due 02/28/21			1,725	1,724	Eurodollar Futures
2.250% due 03/31/21			1,805	1,817	Merrill Lynch Jan 2018 98.50 Call
3.125% due 05/15/21			2,422	2,506	(18)	USD	4,433	(ÿ)	—
1.125% due 07/31/21			12,000	11,604	Merrill Lynch Mar 2018 98.25
1.250% due 10/31/21			24,780	24,003	Put (17)	USD	4,176	(ÿ)	2
1.750% due 11/30/21			9,655	9,520	United States 10 Year
1.750% due 02/28/22			810	798	Treasury Note Futures
2.000% due 07/31/22			1,423	1,412	Merrill Lynch Jan 2018 124.00
7.625% due 11/15/22			400	501	Call (15)	USD	1,860	(ÿ)	7
2.000% due 11/30/22			955	946	Merrill Lynch Jan 2018 124.25
1.250% due 07/31/23			1,115	1,056	Call (7)	USD	870	(ÿ)	3
2.500% due 08/15/23			885	897	Merrill Lynch Jan 2018 123.00
1.375% due 08/31/23			7,900	7,530	Put (17)	USD	2,091	(ÿ)	2
1.375% due 09/30/23			1,680	1,600	Merrill Lynch Jan 2018 124.00
1.625% due 10/31/23			10,865	10,487	Put (10)	USD	1,240	(ÿ)	4
2.750% due 11/15/23			1,410	1,448	United States 5 Year
2.750% due 02/15/24			1,017	1,043	Treasury Note Futures
					Merrill Lynch Jan 2018 116.50
2.125% due 02/29/24			12,225	12,101	Call (31)	USD	3,612	(ÿ)	4
2.500% due 05/15/24			1,155	1,168	Merrill Lynch Jan 2018 116.75
2.250% due 10/31/24			2,375	2,363	Call (27)	USD	3,152	(ÿ)	2

See accompanying notes which are an integral part of the financial statements.

102 Strategic Bond Fund

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)					Amounts in thousands (except share amounts)
		Principal		Fair		Principal	Fair
	Amount ($)			Value		Amount ($)	Value
		or Shares		$		or Shares	$
Merrill Lynch Jan 2018 115.50					1.790% due 11/16/18	100	100
Put (16)	USD	1,848	(ÿ)	1
United States Treasury					Citigroup, Inc.
Bond Futures					1.800% due 02/05/18	1,030	1,030
Merrill Lynch Jan 2018 151.00					2.150% due 07/30/18	1,300	1,301
Call (5)	USD	755	(ÿ)	13	Commercial Mortgage Trust
Merrill Lynch Jan 2018 154.00					Series 2013-CR13 Class A1
Call (10)	USD	1,540	(ÿ)	8
Merrill Lynch Jan 2018 151.00					1.259% due 11/10/18	209	208
Put (14)	USD	2,114	(ÿ)	7	Commonwealth Bank of Australia
Merrill Lynch Jan 2018 152.00					1.282% due 03/23/18 (Ê)(Þ)(~)	1,000	1,001
Put (7)	USD	1,064	(ÿ)	6	1.374% due 07/09/18 (Ê)(~)	350	350
Merrill Lynch Jan 2018 153.00					Credit Suisse AG
Put (54)	USD	8,262	(ÿ)	68
Total Options Purchased					1.750% due 01/29/18	755	755
(cost $144)				140	Daimler Finance NA LLC
					2.000% due 08/03/18 (Þ)	980	980
Short-Term Investments - 14.2%					Danske Corp.
					Series A
Ally Financial, Inc.					1.745% due 02/16/18 (ç)(Þ)(~)	595	594
3.250% due 11/05/18		475		476	DZ Bank AG
Anheuser-Busch InBev Worldwide, Inc.					1.811% due 08/16/18 (Ê)(~)	765	765
1.638% due 03/05/18 (Þ)(~)		500		498	Energy Future Intermediate Holding Co.
Antalis SA					LLC Term Loan
1.819% due 03/19/18 (~)		700		697	4.501% due 06/28/18 (Ê)	9	9
Apache Corp.					4.569% due 06/28/18 (Ê)	241	242
6.900% due 09/15/18		200		206	Eni Finance USA, Inc
Assurant, Inc.					0.834% due 01/09/18 (ç)(~)	1,000	1,000
2.500% due 03/15/18		440		441	Fannie Mae
AT&T, Inc.					3.170% due 08/01/18	1,141	1,131
2.372% due 11/27/18 (Ê)		300		302	Fannie Mae-Aces
Bank of America NA					Series 2013-M4 Class ASQ2
Series BKNT					1.451% due 02/25/18	33	33
1.750% due 06/05/18		915		915	Series 2015-M1 Class ASQ2
2.050% due 12/07/18		315		315	1.626% due 02/25/18	83	83
Bank of Montreal					Federal Home Loan Bank Discount
Series YCD					Notes
1.749% due 08/16/18 (Ê)(~)		1,150		1,151	1.190% due 01/17/18 (ç)(~)	430	430
Barclays Bank PLC					1.169% due 01/22/18 (ç)(~)	570	570
1.017% due 02/12/18 (ç)(~)		1,200		1,198	1.213% due 01/24/18 (ç)(~)	660	659
Barton Capital SA					1.108% due 01/26/18 (ç)(~)	600	600
1.392% due 01/08/18 (ç)(~)		1,100		1,100	1.244% due 02/09/18 (ç)(~)	810	809
BB&T Corp.					1.297% due 02/13/18 (ç)(~)	1,290	1,288
2.050% due 06/19/18		345		345	1.308% due 02/22/18 (ç)(~)	720	719
Bear Stearns Cos. LLC (The)					1.303% due 02/28/18 (~)	630	629
7.250% due 02/01/18		195		196
					1.345% due 03/21/18 (~)	490	489
Capital One NA
2.350% due 08/17/18		610		611	1.397% due 04/25/18 (~)	1,690	1,683
Series BKNT					1.398% due 04/27/18 (~)	460	458
1.650% due 02/05/18		520		520	Ford Motor Credit Co. LLC
Chevron Corp.					2.551% due 10/05/18	860	863
1.919% due 05/16/18 (Ê)		155		155	Series FXD
					2.145% due 01/09/18	1,355	1,355

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 103

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)					Amounts in thousands (except share amounts)
		Principal		Fair		Principal		Fair
		Amount ($)		Value		Amount ($)		Value
		or Shares		$		or Shares		$
Freddie Mac					6.850% due 07/15/18 (Þ)	260		265
4.500% due 08/01/18			278	282	Shell International Finance BV
GE Capital Treasury Services LLC					1.990% due 11/10/18 (Ê)	1,000		1,004
1.303% due 04/04/18 (Ê)(~)			1,100	1,100	Sky PLC
General Motors Co.					6.100% due 02/15/18 (Þ)	515		517
3.500% due 10/02/18			425	429	Sprint Communications, Inc.
Gotham Funding Corp.					9.000% due 11/15/18 (Þ)	19		20
0.910% due 01/03/18 (ç)(~)			500	500	State Street Corp.
Harris Corp.					4.956% due 03/15/18	150		151
1.999% due 04/27/18			235	235	Teva Pharmaceutical Finance
HBOS PLC					Netherlands III BV
Series GMTN					1.400% due 07/20/18	30		30
6.750% due 05/21/18 (Þ)			300	305	Toronto-Dominion Bank (The)
Hewlett Packard Enterprise Co.					1.681% due 06/20/18 (Ê)(~)	800		800
2.850% due 10/05/18			355	357	Total Capital Canada, Ltd.
Huntington National Bank (The)					1.450% due 01/15/18	1,000		1,000
Series BKNT					Toyota Motor Credit Corp.
2.200% due 11/06/18			465	465	1.825% due 12/24/18 (Ê)	2,095		2,092
JPMorgan Chase & Co.					U. S. Cash Management Fund(@)	57,315,857	(8)	57,316
6.000% due 01/15/18			100	100	UBS AG
KeyCorp					Series BKNT
2.300% due 12/13/18			460	461	1.800% due 03/26/18	1,250		1,250
LMA-Americas LLC					United States Treasury Bills
1.237% due 03/20/18 (~)			900	896	0.982% due 01/11/18 (ç)(~)	2,101		2,100
Matchpoint Finance PLC					1.256% due 03/01/18 (ç)(~)	2,020		2,016
1.934% due 03/27/18 (~)			600	597	1.394% due 04/12/18 (ç)(~)	2,195		2,187
McDonald's Corp.					1.520% due 06/21/18 (ç)(~)	2,170		2,155
2.100% due 12/07/18			470	470	United States Treasury Cash
Merck & Co. , Inc.					Management Bills
1.796% due 05/18/18 (Ê)			1,665	1,666	1.060% due 01/02/18 (ç)(~)	300		300
Metropolitan Life Global Funding I					United States Treasury Notes
1.875% due 06/22/18 (Þ)			300	300	0.750% due 02/28/18	3,100		3,097
1.350% due 09/14/18 (Þ)			1,475	1,469	0.875% due 03/31/18	3,210		3,206
Mizuho Bank, Ltd.					1.250% due 12/15/18	1,875		1,865
1.672% due 02/14/18 (ç)(Ê)(~)			800	800	UnitedHealth Group, Inc.
Old Line Funding LLC					1.900% due 07/16/18	560		560
1.554% due 03/12/18 (Ê)(Þ)(~)			750	750	Victory Receivables Corp.
Pfizer, Inc.					1.117% due 02/14/18 (ç)(~)	1,800		1,797
1.889% due 06/15/18 (Ê)			1,323	1,325	Vodafone Group PLC
Pharmacia LLC					2.126% due 09/04/18 (Þ)(~)	610		601
6.500% due 12/01/18			240	250	2.165% due 10/04/18 (Þ)(~)	640		630
Province of Quebec Canada					Voya Financial, Inc.
Series MTN					2.900% due 02/15/18	208		208
1.717% due 09/04/18 (Ê)			335	335	Westpac Banking Corp.
PSP Capital, Inc					1.769% due 11/29/18 (Ê)(Þ)(~)	1,100		1,100
1.462% due 11/07/18 (Ê)(Þ)(~)			400	400	Total Short-Term Investments
Republic of Argentina Government
International Bond					(cost $129,036)			129,023
21.200% due 09/19/18	ARS		90	5
Rockies Express Pipeline LLC

See accompanying notes which are an integral part of the financial statements.

104 Strategic Bond Fund

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)
Principal	Fair
Amount ($)	Value
or Shares	$
Total Investments 103.4%
(identified cost $934,648)	938,005
Other Assets and Liabilities,
Net - (3.4%)	(30,638	)
Net Assets - 100.0%	907,367

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 105

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
		Principal	Cost per	Cost		Fair Value
% of Net Assets	Acquisition	Amount ($)	Unit	(000	)	(000	)
Securities	Date	or shares	$	$		$
0.7%
BCAP LLC Trust	11/23/13	137,205	103.90	143		139
CSMC Mortgage-Backed Trust	07/26/13	65,012	97.57	63		65
Dryden 37 Senior Loan Fund	12/06/17	1,300,000	100.00	1,300		1,300
FDIC Trust	06/08/12	264,387	103.82	274		265
Hilton USA Trust	11/22/16	600,000	81.43	489		547
Madison Park Funding XVIII, Ltd.	12/01/17	872,000	100.80	879		879
One Market Plaza Trust	02/15/17	595,000	97.62	581		585
THL Credit Wind River CLO, Ltd.	10/02/17	1,016,000	100.00	1,016		1,025
Voya CLO, Ltd.	03/31/17	1,428,000	100.07	1,430		1,438
						6,243
For a description of restricted securities see note 7 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

106 Strategic Bond Fund

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Variable Rate Securities
Securities	Referenced Rate	Spread %
1011778 B. C. Unlimited Liability Co. 1st Lien Term Loan B4	USD 3 Month LIBOR	2.250
Aames Mortgage Investment Trust	USD 1 Month LIBOR	1.305
Access Group, Inc.	USD 3 Month LIBOR	0.060
ACE Securities Corp. Home Equity Loan Trust	USD 1 Month LIBOR	0.675
Air Medical Group Holdings, Inc. 1st Lien Term Loan B	USD 3 Month LIBOR	3.250
Air Medical Group Holdings, Inc. 1st Lien Term Loan B1	USD 3 Month LIBOR	4.000
Albertson's LLC Term Loan B4	USD 1 Month LIBOR	2.750
Albertson's LLC Term Loan B6	USD 3 Month LIBOR	3.000
American Airlines, Inc. 2017 Term Loan	USD 1 Month LIBOR	2.000
American Airlines, Inc. Term Loan B	USD 1 Month LIBOR	2.000
American Axle & Manufacturing, Inc. 1st Lien Term Loan B	USD 3 Month LIBOR	2.250
American Builders & Contractors Supply Co. , Inc. Term Loan B	USD 1 Month LIBOR	2.500
American Home Mortgage Investment Trust	USD 6 Month LIBOR	2.000
American Honda Finance Corp.	USD 3 Month LIBOR	0.340
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates	USD 1 Month LIBOR	1.110
Apple, Inc.	USD 3 Month LIBOR	0.820
Apple, Inc.	USD 3 Month LIBOR	0.300
Aristocrat International Pty, Ltd. Term Loan B2	USD 3 Month LIBOR	2.000
Asset-Backed Funding Trust Certificates	USD 1 Month LIBOR	0.540
AT&T, Inc.	USD 3 Month LIBOR	0.910
AT&T, Inc.	USD 3 Month LIBOR	0.670
Australia & New Zealand Banking Group, Ltd.	USD 3 Month LIBOR	0.500
Avolon LLC Term Loan B	USD 1 Month LIBOR	2.250
BAC Capital Trust XIV	USD 3 Month LIBOR	0.400
Bank of America Corp.	USD 3 Month LIBOR	1.370
Bank of America Corp.	USD 3 Month LIBOR	0.790
Bank of America Corp.	USD 3 Month LIBOR	1.575
Bank of America Corp.	USD 3 Month LIBOR	1.040
Bank of America Corp.	USD 3 Month LIBOR	0.630
Bank of America Corp.	USD 3 Month LIBOR	3.898
Bank of Montreal	USD 3 Month LIBOR	0.330
Bank of Nova Scotia (The)	USD 3 Month LIBOR	0.660
BankAmerica Capital III	USD 3 Month LIBOR	0.570
Barclays Commercial Mortgage Securities LLC	USD 1 Month LIBOR	2.850
Bayview Commercial Asset Trust	USD 1 Month LIBOR	0.270
	U. S. Treasury Yield Curve Rate T Note Constat
Bear Stearns Adjustable Rate Mortgage Trust	Maturity 1 Year	2.450
Bear Stearns Alternative-A Trust	USD 1 Month LIBOR	0.750
Berry Plastics Group, Inc  Term Loan M	USD 1 Month LIBOR	2.250
BMW US Capital LLC	USD 3 Month LIBOR	0.380
Boyd Gaming Corp. Term Loan B	USD 1 Week LIBOR	2.500
Caesars Resort Collection LLC 1st Lien Term Loan B	USD 1 Month LIBOR	0.000
Canadian Imperial Bank of Commerce	USD 3 Month LIBOR	0.330
Canadian Imperial Bank of Commerce	USD 3 Month LIBOR	0.230

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 107

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Variable Rate Securities
Securities	Referenced Rate	Spread %
Capital One Multi-Asset Execution Trust	USD 1 Month LIBOR	0.380
Carlyle Global Market Strategies CLO, Ltd.	USD 3 Month LIBOR	1.470
Catalent Pharma Solutions, Inc. Term Loan B	USD 1 Month LIBOR	2.250
CenturyLink, Inc. Term Loan B	U. S. Prime Rate	2.750
Change Healthcare Holdings LLC 1st Lien Term Loan B	USD 1 Month LIBOR	2.750
Chevron Corp.	USD 3 Month LIBOR	0.500
CHL Mortgage Pass-Through Trust	USD 1 Month LIBOR	0.580
CIT Mortgage Loan Trust	USD 1 Month LIBOR	1.500
Citigroup Mortgage Loan Trust, Inc.	USD 1 Month LIBOR	0.250
Citigroup Mortgage Loan Trust, Inc.	USD 1 Month LIBOR	0.450
Citigroup Mortgage Loan Trust, Inc.	USD 1 Month LIBOR	0.340
	U. S. Treasury Yield Curve Rate T Note Constant
Citigroup Mortgage Loan Trust, Inc.	Maturity 1 Year	2.400
Citigroup, Inc.	USD 3 Month LIBOR	3.905
CityCenter Holdings, LLC Term Loan B	USD 1 Month LIBOR	2.500
Cold Storage Trust	USD 1 Month LIBOR	2.100
Commonwealth Bank of Australia	USD 1 Month LIBOR	0.150
Commonwealth Bank of Australia	USD 1 Month LIBOR	0.300
Countrywide Alternative Loan Trust	USD 1 Month LIBOR	0.400
Countrywide Asset-Backed Certificates	USD 1 Month LIBOR	0.800
Countrywide Asset-Backed Certificates	USD 1 Month LIBOR	0.520
	USD Swap Semiannual 30/360 (versus 3 Month
Credit Suisse Group AG	LIBOR) 5 Year Rate	3.455
Credit Suisse Mortgage Capital Certificates	USD 1 Month LIBOR	5.620
CSC Holdings, LLC 1st Lien Term Loan	USD 1 Month LIBOR	2.250
CWGS Group LLC Term Loan	USD 1 Month LIBOR	3.000
Dell International LLC 1st Lien Term Loan A2	USD 1 Month LIBOR	1.750
Dell International LLC 1st Lien Term Loan B	USD 1 Month LIBOR	2.000
Dryden 34 Senior Loan Fund	USD 3 Month LIBOR	1.160
Dryden 37 Senior Loan Fund	USD 3 Month LIBOR	1.100
Dryden 50 Senior Loan Fund	USD 3 Month LIBOR	1.220
DZ Bank AG	USD 3 Month LIBOR	0.370
Energy Future Intermediate Holding Co. LLC Term Loan	USD 1 Month LIBOR	3.000
Energy Transfer Partners LP	USD 3 Month LIBOR	4.028
EnLink Midstream Partners, LP	USD 3 Month LIBOR	4.110
Enterprise Products Operating LLC	USD 3 Month LIBOR	2.680
Enterprise Products Operating LLC	USD 3 Month LIBOR	3.708
Exxon Mobil Corp.	USD 3 Month LIBOR	0.150
Fannie Mae	USD 1 Month LIBOR	4.250
Fannie Mae	USD 1 Month LIBOR	4.900
Fannie Mae Connecticut Avenue Securities	USD 1 Month LIBOR	1.300
Fannie Mae REMICS	USD 1 Month LIBOR	6.100
Fannie Mae REMICS	USD 1 Month LIBOR	6.150
Fannie Mae REMICS	USD 1 Month LIBOR	5.950
Fannie Mae REMICS	USD 1 Month LIBOR	6.000

See accompanying notes which are an integral part of the financial statements.

108 Strategic Bond Fund

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Variable Rate Securities
Securities	Referenced Rate	Spread %
Fannie Mae REMICS	USD 1 Month LIBOR	6.100
Fannie Mae REMICS	USD 1 Month LIBOR	6.500
Fannie Mae REMICS	USD 1 Month LIBOR	6.200
Farmers Exchange Capital III	USD 3 Month LIBOR	3.454
FFMLT Trust	USD 1 Month LIBOR	0.780
Fieldstone Mortgage Investment Trust	USD 1 Month LIBOR	1.950
First Data Corp. 1st Lien Term Loan	USD 1 Month LIBOR	2.250
Ford Credit Auto Owner Trust	USD 1 Month LIBOR	0.070
Freddie Mac Multifamily Structured Pass-Through Certificates	USD 1 Month LIBOR	0.670
Freddie Mac Multifamily Structured Pass-Through Certificates	USD 1 Month LIBOR	0.550
Freddie Mac REMICS	USD 1 Month LIBOR	6.490
Freddie Mac Strips	USD 1 Month LIBOR	6.000
Freddie Mac Strips	USD 1 Month LIBOR	6.100
Freddie Mac Structured Agency Credit Risk Debt Notes	USD 1 Month LIBOR	5.150
Freddie Mac Structured Agency Credit Risk Debt Notes	USD 1 Month LIBOR	4.150
Freddie Mac Structured Agency Credit Risk Debt Notes	USD 1 Month LIBOR	2.600
Freddie Mac Structured Agency Credit Risk Debt Notes	USD 1 Month LIBOR	1.200
Freddie Mac Structured Agency Credit Risk Debt Notes	USD 1 Month LIBOR	3.250
GE Capital Treasury Services LLC	USD 1 Month LIBOR	0.070
General Electric Co.	USD 3 Month LIBOR	0.800
Ginnie Mae	USD 1 Month LIBOR	6.150
Ginnie Mae	USD 1 Month LIBOR	6.050
Golden Nugget, Inc. 1st Lien Term Loan	USD 2 Month LIBOR	3.250
Goldman Sachs Capital II	USD 3 Month LIBOR	0.768
Goldman Sachs Group, Inc. (The)	USD 3 Month LIBOR	1.201
Goldman Sachs Group, Inc. (The)	USD 3 Month LIBOR	1.750
Goldman Sachs Group, Inc. (The)	USD 3 Month LIBOR	1.510
Greenpoint Manufactured Housing Contract Trust	USD 1 Month LIBOR	2.000
GSAMP Trust	USD 1 Month LIBOR	0.140
HCA, Inc. Term Loan B8	USD 1 Month LIBOR	2.250
Hilton Worldwide Finance LLC Term Loan B2	USD 1 Month LIBOR	2.000
Home Equity Asset Trust	USD 1 Month LIBOR	0.410
Home Equity Asset Trust	USD 1 Month LIBOR	0.280
Home Equity Asset Trust	USD 1 Month LIBOR	0.150
HSBC Bank PLC	USD 6 Month LIBOR	0.250
HSBC Holdings PLC	USD 3 Month LIBOR	1.546
HSBC Holdings PLC	USD 3 Month LIBOR	1.055
HSI Asset Securitization Corp. Trust	USD 1 Month LIBOR	0.140
HSI Asset Securitization Corp. Trust	USD 1 Month LIBOR	0.190
Hyatt Hotel Portfolio Trust	USD 1 Month LIBOR	1.056
IBM Credit LLC	USD 3 Month LIBOR	0.260
IndyMac Mortgage Loan Trust	USD 1 Month LIBOR	0.240
International Business Machines Corp.	USD 3 Month LIBOR	0.370
Jaguar Holding Co. II Term Loan	USD 1 Month LIBOR	2.750

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 109

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Variable Rate Securities
Securities	Referenced Rate	Spread %
JPMorgan Chase & Co.	USD 3 Month LIBOR	1.337
JPMorgan Chase & Co.	USD 3 Month LIBOR	0.550
LCM XXII, Ltd.	USD 3 Month LIBOR	1.480
LCM XXV, Ltd.	USD 3 Month LIBOR	1.210
Level 3 Financing, Inc. Term Loan B	USD 3 Month LIBOR	2.250
Lions Gate Entertainment Corp. Term Loan B	USD 1 Month LIBOR	2.250
Lloyds Banking Group PLC	USD 3 Month LIBOR	0.810
Long Beach Mortgage Loan Trust	USD 1 Month LIBOR	0.900
Long Beach Mortgage Loan Trust	USD 1 Month LIBOR	0.750
MA Finance Co. LLC 1st Lien Term Loan B	USD 1 Month LIBOR	2.750
MacDermid, Inc. Term Loan B6	USD 1 Month LIBOR	3.000
Madison Park Funding XVIII, Ltd.	USD 3 Month LIBOR	1.190
Madison Park Funding XXVI, Ltd.	USD 3 Month LIBOR	1.200
Magnetite XVIII, Ltd.	USD 3 Month LIBOR	1.400
Master Asset-Backed Securities Trust	USD 1 Month LIBOR	0.945
Merck & Co. , Inc.	USD 3 Month LIBOR	0.360
Merrill Lynch Mortgage Investors Trust	USD 1 Month LIBOR	0.370
MGM Growth Properties Operating Partnership, LP Term Loan B	USD 1 Month LIBOR	2.250
Michaels Stores, Inc. Term Loan B1	USD 1 Month LIBOR	2.750
Mizuho Bank, Ltd.	USD 3 Month LIBOR	0.400
Mizuho Bank, Ltd.	USD 1 Month LIBOR	0.200
Morgan Stanley	USD 3 Month LIBOR	1.400
Morgan Stanley	USD 3 Month LIBOR	1.340
MultiPlan, Inc. Term Loan B	USD 3 Month LIBOR	3.000
Mutual of Omaha Insurance Co.	USD 3 Month LIBOR	2.640
National Australia Bank, Ltd.	USD 3 Month LIBOR	0.280
National Australia Bank, Ltd.	USD 3 Month LIBOR	0.510
National Bank of Canada	USD 3 Month LIBOR	0.200
Nelnet Student Loan Trust	USD 3 Month LIBOR	1.650
New Century Home Equity Loan Trust	USD 1 Month LIBOR	0.480
New York Life Global Funding	USD 3 Month LIBOR	0.120
Nomura Resecuritization Trust	USD 1 Month LIBOR	0.190
Nordea Bank AB	USD 3 Month LIBOR	0.470
Nordea Bank AB	USD 3 Month LIBOR	0.380
Numericable Group SA Term Loan B12	USD 3 Month LIBOR	3.000
Old Line Funding LLC	USD 1 Month LIBOR	0.110
Option One Mortgage Loan Trust	USD 1 Month LIBOR	0.780
Pacific Life Insurance Co.	USD 3 Month LIBOR	2.796
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates	USD 1 Month LIBOR	0.945
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates	USD 1 Month LIBOR	1.125
Party City Holdings, Inc. Term Loan	USD 3 Month LIBOR	3.000
Petco Animal Supplies, Inc. 1st Lien Term Loan B1	USD 3 Month LIBOR	3.000
PetSmart, Inc. Term Loan B2	USD 1 Month LIBOR	3.000
Pfizer, Inc.	USD 3 Month LIBOR	0.300

See accompanying notes which are an integral part of the financial statements.

110 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Variable Rate Securities
Securities	Referenced Rate	Spread %
Popular ABS Mortgage Pass-Through Trust	USD 1 Month LIBOR	0.260
Popular ABS Mortgage Pass-Through Trust	USD 1 Month LIBOR	0.250
Post Holdings, Inc. Incremental Term Loan	USD 1 Month LIBOR	2.250
Prime Security Services Borrower LLC Term Loan B1	USD 1 Month LIBOR	2.750
Procter & Gamble Co. (The)	USD 3 Month LIBOR	0.270
Province of Quebec Canada	USD 3 Month LIBOR	0.230
Province of Quebec Canada	USD 3 Month LIBOR	0.280
PSP Capital, Inc	USD 3 Month LIBOR	0.070
Quikrete Holdings, Inc. 1st Lien Term Loan B	USD 1 Month LIBOR	2.750
RAMP Trust	USD 1 Month LIBOR	0.570
Reckitt Benckiser Treasury Services PLC	USD 3 Month LIBOR	0.560
Republic of Argentina Government International Bond	Argentina Central Bank 7-Day Repo Reference Rate	0.000
	Federal Reserve U. S. 12 Month Cumulative Avg 1
Residential Accredit Loans, Inc.	Year CMT	0.850
Residential Asset Mortgage Products, Inc. Trust	USD 1 Month LIBOR	0.480
Residential Asset Securitization Trust	USD 1 Month LIBOR	0.450
Reynolds Group Holdings, Inc. 1st Lien Term Loan B	USD 1 Month LIBOR	2.750
RPI Finance Trust Term Loan B	USD 3 Month LIBOR	2.000
Santander UK Group Holdings PLC	USD 3 Month LIBOR	1.400
Scientific Games International, Inc. 1st Lien Term Loan B4	USD 2 Month LIBOR	3.250
Seattle SpinCo, Inc. Term Loan B3	USD 1 Month LIBOR	2.750
Shell International Finance BV	USD 3 Month LIBOR	0.580
SLM Private Credit Student Loan Trust	USD 3 Month LIBOR	0.290
SLM Private Credit Student Loan Trust	USD 3 Month LIBOR	0.330
SLM Student Loan Trust	USD 1 Month LIBOR	0.400
SLM Student Loan Trust	USD 3 Month LIBOR	1.100
Sprint Communications, Inc. 1st Lien Term Loan B	USD 1 Month LIBOR	2.500
Staples, Inc. 1st Lien Term Loan	USD 3 Month LIBOR	4.000
Structured Asset Investment Loan Trust	USD 1 Month LIBOR	0.720
Sumitomo Mitsui Banking Corp.	USD 3 Month LIBOR	0.460
SunGard Availability Services Capital, Inc. Term Loan B	USD 1 Month LIBOR	7.000
Svenska Handelsbanken AB	USD 3 Month LIBOR	0.280
THL Credit Wind River CLO, Ltd.	USD 3 Month LIBOR	1.230
Toronto-Dominion Bank (The)	USD 3 Month LIBOR	0.840
Toronto-Dominion Bank (The)	USD 1 Month LIBOR	0.180
Toyota Motor Credit Corp.	USD 3 Month LIBOR	0.260
Toyota Motor Credit Corp.	USD 3 Month LIBOR	0.150
Trans Union LLC 1st Lien Term Loan B3	USD 1 Month LIBOR	2.000
Univision Communications, Inc. Term Loan C5	USD 1 Month LIBOR	2.750
UPC Financing Partnership 1st Lien Term Loan AR	USD 1 Month LIBOR	2.500
US Bancorp	USD 3 Month LIBOR	0.400
US Bank NA	USD 3 Month LIBOR	0.140
Viacom, Inc.	USD 3 Month LIBOR	3.899
Voya CLO, Ltd.	USD 3 Month LIBOR	1.250

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 111

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Variable Rate Securities
Securities		Referenced Rate			Spread %
Wachovia Capital Trust II		USD 3 Month LIBOR			0.500
Walt Disney Co. (The)		USD 3 Month LIBOR			0.190
		Federal Reserve U. S. 12 Month Cumulative Avg 1
Washington Mutual Mortgage Pass-Through Certificates Trust		Year CMT			1.070
Washington Mutual Mortgage Pass-Through Certificates Trust		USD 1 Month LIBOR			0.320
Washington Mutual Mortgage Pass-Through Certificates Trust		USD 1 Month LIBOR			0.640
Wells Fargo & Co.		USD 3 Month LIBOR			1.340
Wells Fargo & Co.		USD 3 Month LIBOR			1.230
Wells Fargo Home Equity Asset-Backed Securities Trust		USD 1 Month LIBOR			0.885
Westpac Banking Corp.		USD 1 Month LIBOR			0.200
XPO Logistics, Inc. Term Loan B		USD 3 Month LIBOR			2.250
Zebra Technologies Corp. Term Loan B		USD 3 Month LIBOR			2.000
Ziggo Secured Finance Partnership 1st Lien Term Loan E		USD 1 Month LIBOR			2.500
A
For a description of variable, adjustable or floating rate securities see note 2 in the Notes to Financial Statements.
Futures Contracts
Amounts in thousands (except contract amounts)
					Value and
					Unrealized
					Appreciation
	Number of	Notional		Expiration	(Depreciation)
	Contracts	Amount		Date	$
Long Positions
Australia 10 Year Bond Futures	455	AUD	58,766	03/18	(383	)
Euro-BTP Futures	60	EUR	8,169	03/18	(226	)
Euro-Bund Futures	6	EUR	5	01/18	1
Euro-Bund Futures	39	EUR	6,306	03/18	(67	)
United States 10 Year Treasury Note Futures	871	USD	108,044	03/18	(608	)
United States 10 Year Ultra Treasury Bond Futures	17	USD	2,271	03/18	(6	)
United States 2 Year Treasury Note Futures	169	USD	36,185	03/18	(65	)
United States 5 Year Treasury Note Futures	960	USD	111,517	03/18	(407	)
United States Long Bond Futures	157	USD	24,021	03/18	(4	)
United States Ultra Treasury Bond Futures	147	USD	24,646	03/18	185
Short Positions
Euro-Bobl Futures	35	EUR	4,606	03/18	35
Euro-Bund Futures	4	EUR	1	01/18	—
Euro-Bund Futures	264	EUR	42,683	03/18	386
Eurodollar Futures	136	USD	33,023	03/18	39
Eurodollar Futures	76	USD	18,634	06/18	21
Eurodollar Futures	12	USD	2,939	09/18	13
Eurodollar Futures	39	USD	9,541	12/18	11
Eurodollar Futures	30	USD	7,325	12/19	(6	)
Euro-OAT Futures	17	EUR	2,638	03/18	34
Euro-Schatz Futures	514	EUR	57,556	03/18	96
Japan Government 10 Year Bond Futures	4	JPY	603,121	03/18	6
Long Gilt Futures	279	GBP	34,919	03/18	(275	)
United States 10 Year Treasury Note Futures	61	USD	7,567	03/18	50
United States 10 Year Ultra Treasury Bond Futures	25	USD	3,340	03/18	3
United States 2 Year Treasury Note Futures	85	USD	18,199	03/18	29
United States 5 Year Treasury Note Futures	1	USD	116	03/18	1
United States Long Bond Futures	48	USD	7,344	03/18	(1	)

See accompanying notes which are an integral part of the financial statements.

112 Strategic Bond Fund

Russell Investment Funds
Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Futures Contracts
Amounts in thousands (except contract amounts)
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)										(1,138	)
Options Written
Amounts in thousands (except contract amounts)
			Number of		Strike		Notional		Expiration	Fair Value
Description	Counterparty	Call/Put	Contracts		Price		Amount		Date	$
EURIBOR 1 Year Mid-Curve Options	Merrill Lynch	Put	2		97.75		USD	489	01/12/18	—
EURIBOR 1 Year Mid-Curve Options	Merrill Lynch	Put	25		97.75		USD	6,109	02/16/18	(3	)
United States 10 Year Treasury Note
Futures	Merrill Lynch	Call	15		125.50		USD	1,883	01/26/18	(1	)
United States 10 Year Treasury Note
Futures	Merrill Lynch	Call	8		126.50		USD	1,012	01/26/18	—
United States 10 Year Treasury Note
Futures	Merrill Lynch	Call	14		126.00		USD	1,764	02/23/18	(2	)
United States 10 Year Treasury Note
Futures	Merrill Lynch	Call	15		126.50		USD	1,898	02/23/18	(1	)
United States 10 Year Treasury Note
Futures	Merrill Lynch	Put	8		122.50		USD	980	01/26/18	(1	)
United States 10 Year Treasury Note
Futures	Merrill Lynch	Put	15		122.00		USD	1,830	02/23/18	(2	)
United States 5 Year Treasury Note
Futures	Merrill Lynch	Call	32		117.75		USD	3,768	02/23/18	(2	)
United States 5 Year Treasury Note
Futures	Merrill Lynch	Call	16		118.50		USD	1,896	02/23/18	—
United States 5 Year Treasury Note
Futures	Merrill Lynch	Put	15		115.75		USD	1,736	01/26/18	(1	)
United States 5 Year Treasury Note
Futures	Merrill Lynch	Put	8		116.00		USD	928	01/26/18	(1	)
United States 5 Year Treasury Note
Futures	Merrill Lynch	Put	16		115.50		USD	1,848	02/23/18	(2	)
United States Treasury Bond Futures	Merrill Lynch	Call	10		153.00		USD	1,530	01/26/18	(14	)
United States Treasury Bond Futures	Merrill Lynch	Call	8		158.00		USD	1,264	02/23/18	(3	)
United States Treasury Bond Futures	Merrill Lynch	Put	3		148.00		USD	444	01/26/18	—
United States Treasury Bond Futures	Merrill Lynch	Put	9		149.00		USD	1,341	01/26/18	(2	)
Total Liability for Options Written (premiums received $44)										(35	)
Foreign Currency Exchange Contracts
Amounts in thousands
										Unrealized
										Appreciation
			Amount				Amount			(Depreciation)
Counterparty			Sold				Bought	Settlement Date		$
Bank of America			USD	17		CZK	374	02/26/18		—
Bank of America			USD	3,515		CZK	75,782	02/26/18		53
Bank of America			USD	35		HUF	9,158	02/26/18		1
Bank of America			USD	3,498		HUF	924,334	02/26/18		81
Bank of America			USD	11	MXN		211	02/26/18		—
Bank of America			USD	1,515	MXN		29,461	02/26/18		(31	)
Bank of America			USD	3,495		PLN	12,562	02/26/18		114
Bank of America			USD	1,497		TRY	5,957	02/26/18		49
Bank of America			USD	3,369		TRY	13,404	02/26/18		110
Bank of America			USD	1,539		ZAR	22,299	02/26/18		249
Bank of America			USD	3,462		ZAR	50,172	02/26/18		561
Bank of America			CZK	166		USD	8	02/26/18		—
Bank of America			CZK	33,681		USD	1,562	02/26/18		(24	)
Bank of America		HKD		127		USD	16	02/26/18		—
Bank of America		HKD		11,989		USD	1,538	02/26/18		2
Bank of America			HUF	4,070		USD	15	02/26/18		—

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 113

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Strategic Bond Fund

Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in thousands
						Unrealized
						Appreciation
		Amount		Amount		(Depreciation)
Counterparty		Sold		Bought	Settlement Date	$
Bank of America	HUF	410,815	USD	1,555	02/26/18	(36	)
Bank of America	JPY	389,992	SEK	28,500	01/31/18	14
Bank of America	PLN	41	USD	11	02/26/18	—
Bank of America	SGD	4	USD	3	02/26/18	—
Bank of America	SGD	2,093	USD	1,544	02/26/18	(22	)
Bank of America	TRY	15	USD	4	02/26/18	—
Bank of America	TRY	35	USD	9	02/26/18	—
Bank of America	ZAR	1,377	USD	103	02/26/18	(7	)
Bank of America	ZAR	3,097	USD	232	02/26/18	(17	)
Bank of Montreal	USD	2,932	EUR	2,476	01/23/18	42
Bank of Montreal	USD	4,561	EUR	3,851	01/23/18	64
Bank of Montreal	CHF	1,280	USD	1,303	01/23/18	(12	)
Bank of Montreal	CHF	2,879	USD	2,932	01/23/18	(27	)
Barclays	USD	1,164	CAD	1,450	01/19/18	(10	)
Barclays	USD	360	GBP	270	01/19/18	5
Barclays	USD	1,130	INR	74,500	01/19/18	36
Barclays	USD	361	JPY	40,650	01/19/18	—
Barclays	EUR	788	USD	939	01/19/18	(7	)
Citigroup	USD	324	BRL	1,040	01/19/18	(11	)
Citigroup	USD	9,053	GBP	6,777	01/23/18	104
Citigroup	USD	834	JPY	94,530	01/19/18	6
Citigroup	USD	1,139	JPY	128,470	01/19/18	2
Citigroup	USD	2,591	NZD	3,699	01/23/18	30
Citigroup	CNY	15,140	USD	2,285	01/19/18	(39	)
Citigroup	JPY	263,648	USD	2,360	01/19/18	18
Citigroup	NZD	12,947	USD	9,069	01/23/18	(104	)
Citigroup	SEK	21,874	USD	2,609	01/23/18	(60	)
Commonwealth Bank of Australia	USD	2,933	EUR	2,476	01/23/18	40
Commonwealth Bank of Australia	USD	4,563	EUR	3,851	01/23/18	63
Commonwealth Bank of Australia	CHF	1,280	USD	1,304	01/23/18	(11	)
Commonwealth Bank of Australia	CHF	2,879	USD	2,933	01/23/18	(25	)
Goldman Sachs	USD	496	SEK	4,194	01/18/18	16
HSBC	USD	552	INR	35,700	01/18/18	7
JPMorgan Chase	USD	1,528	CAD	1,957	02/08/18	29
JPMorgan Chase	USD	1,212	CLP	769,726	01/10/18	39
JPMorgan Chase	USD	2,798	GBP	2,092	02/13/18	30
JPMorgan Chase	USD	1,276	MXN	24,311	01/19/18	(43	)
JPMorgan Chase	USD	1,445	NOK	11,734	02/08/18	(15	)
JPMorgan Chase	USD	184	PLN	669	02/08/18	8
JPMorgan Chase	USD	3,249	SEK	27,113	02/08/18	63
JPMorgan Chase	USD	36	ZAR	512	02/08/18	5
JPMorgan Chase	USD	138	ZAR	2,009	02/08/18	24
JPMorgan Chase	USD	406	ZAR	5,769	02/08/18	58
JPMorgan Chase	AUD	7,388	USD	5,556	02/13/18	(208	)
JPMorgan Chase	BRL	8,639	USD	2,634	01/10/18	32
JPMorgan Chase	CHF	2,069	USD	2,085	02/08/18	(43	)
JPMorgan Chase	COP	2,620,180	USD	873	01/10/18	(5	)
JPMorgan Chase	CZK	1,853	USD	85	02/08/18	(3	)
JPMorgan Chase	EUR	3,413	USD	4,041	02/13/18	(64	)
JPMorgan Chase	HKD	524	USD	67	02/08/18	—
JPMorgan Chase	HUF	323,200	USD	1,217	02/08/18	(33	)
JPMorgan Chase	IDR	25,423,879	USD	1,874	01/10/18	(5	)
JPMorgan Chase	JPY	84,689	USD	754	02/13/18	1

See accompanying notes which are an integral part of the financial statements.

114 Strategic Bond Fund

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Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in thousands
													Unrealized
													Appreciation
						Amount		Amount					(Depreciation)
Counterparty						Sold		Bought	Settlement Date				$
JPMorgan Chase			MXN			14,914	USD	771	02/08/18				17
JPMorgan Chase				NZD		10,274	USD	7,013	02/13/18				(266	)
JPMorgan Chase				PEN		10,383	USD	3,192	01/10/18				(9	)
JPMorgan Chase				PHP		66,059	USD	1,300	01/10/18				(23	)
JPMorgan Chase		��		SGD		3,373	USD	2,483	02/08/18				(40	)
JPMorgan Chase				THB		67,306	USD	2,058	01/10/18				(7	)
JPMorgan Chase				ZAR		8,290	USD	583	02/08/18				(83	)
State Street				USD		2,608	AUD	3,399	01/23/18				44
State Street				USD		21	BRL	70	02/26/18				—
State Street				USD		1,527	BRL	5,051	02/26/18				(13	)
State Street				USD		9,148	ILS	32,020	01/23/18				61
State Street				USD		5,874	JPY	658,079	01/23/18				(28	)
State Street				USD		5	RUB	315	02/26/18				—
State Street				USD		1,504	RUB	91,365	02/26/18				67
State Street				AUD		11,896	USD	9,128	01/23/18				(154	)
State Street				BRL		157	USD	47	02/26/18				—
State Street				BRL		11,365	USD	3,436	02/26/18				30
State Street				CLP		75,484	USD	118	02/26/18				(4	)
State Street				CLP		2,183,403	USD	3,441	02/26/18				(106	)
State Street				DKK		16,379	USD	2,612	01/23/18				(31	)
State Street				IDR		606,148	USD	44	02/26/18				—
State Street				IDR		46,854,507	USD	3,416	02/26/18				(36	)
State Street				ILS		20,584	USD	5,881	01/23/18				(39	)
State Street				JPY		1,023,678	USD	9,137	01/23/18				43
State Street				PEN		83	USD	25	02/26/18				—
State Street				PEN		11,208	USD	3,425	02/26/18				(23	)
State Street				RUB		140	USD	2	02/26/18				—
State Street				RUB		205,572	USD	3,384	02/26/18				(152	)
State Street			TWD			231	USD	8	02/26/18				—
State Street			TWD			46,380	USD	1,548	02/26/18				(25	)
Westpac				USD		5,859	GBP	4,357	01/23/18				27
Westpac				NOK		48,744	USD	5,869	01/23/18				(71	)
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts													273
Interest Rate Swap Contracts
Amounts in thousands
									Premiums		Unrealized
									Paid		Appreciation
								Termination	(Received)		(Depreciation)		Fair Value
Counterparty	Notional Amount		Fund Receives			Fund Pays		Date	$		$		$
JPMorgan Chase	DKK	4,200	Six Month CIBOR(3)		0.510%(4)			05/05/25	—		9		9
JPMorgan Chase	DKK	10,470	Six Month CIBOR(3)		0.943%(4)			05/05/25	—		(34	)	(34	)
JPMorgan Chase	CZK	15,850	Six Month PRIBOR(3)		0.495%(4)			06/19/25	—		64		64
JPMorgan Chase	CZK	36,930	Six Month PRIBOR(3)		1.280%(4)			06/19/25	—		46		46
Merrill Lynch	USD	3,744	2.250%(3)		Three Month LIBOR(2)			05/31/22	7		(10	)	(3	)
Merrill Lynch	USD	580	Three Month LIBOR(2)		2.630%(3)			11/15/43	(3	)	(4	)	(7	)
Merrill Lynch	USD	5,490	Three Month LIBOR(2)		2.474%(3)			11/15/43	113		(14	)	99
Total Open Interest Rate Swap Contracts (å)									117		57		174

See accompanying notes which are an integral part of the financial statements.

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Schedule of Investments, continued — December 31, 2017

Credit Default Swap Contracts
Amounts in thousands
Credit Indices
							Premiums		Unrealized
					Fund (Pays)/		Paid/		Appreciation
		Purchase/Sell			Receives	Termination	(Received)		(Depreciation)		Fair Value
Reference Entity	Counterparty	Protection	Notional Amount		Fixed Rate	Date	$		$		$
CDX NA High Yield Index	Merrill Lynch	Purchase	USD	2,360	(5.000%)(2)	12/20/22	(176	)	(23	)	(199	)
CDX NA Investment Grade
Index	Merrill Lynch	Sell	USD	2,350	1.000%(2)	06/20/22	43		10		53
Total Open Credit Indices Contracts (å)							(133	)	(13	)	(146	)

Presentation of Portfolio Holdings
Amounts in thousands
								Fair Value
										Practical
Portfolio Summary		Level 1			Level 2			Level 3	Expedient (a)			Total		% of Net Assets
Long-Term Investments
Asset-Backed Securities	$	—		$	55,944		$	—	$	—	$	55,944			6.2
Corporate Bonds and Notes		—			175,872			82		—		175,954			19.4
International Debt		—			75,072			1,300		—		76,372			8.4
Loan Agreements		—			9,185			—		—		9,185			1.0
Mortgage-Backed Securities		—			197,929			—		—		197,929			21.8
Municipal Bonds		—			3,262			—		—		3,262			0.4
Non-US Bonds		—			32,885			—		—		32,885			3.6
United States Government Treasuries		—			257,311			—		—		257,311			28.4
Options Purchased		140			—			—		—		140			—*
Short-Term Investments		—			71,707			—		57,316		129,023			14.2
Total Investments		140			879,167			1,382		57,316		938,005			103.4
Other Assets and Liabilities, Net															(3.4	)
															100.0
Other Financial Instruments
Assets
Futures Contracts		910			—			—		—		910			0.1
Foreign Currency Exchange Contracts		—			2,245			—		—		2,245			0.2
Interest Rate Swap Contracts		—			218			—		—		218			—*
Credit Default Swap Contracts		—			53			—		—		53			—*
A
Liabilities
Futures Contracts		(2,048	)		—			—		—		(2,048	)		(0.2	)
Options Written		(35	)		—			—		—		(35	)		(—)*
Foreign Currency Exchange Contracts		—			(1,972	)		—		—		(1,972	)		(0.2	)
Interest Rate Swap Contracts		—			(44	)		—		—		(44	)		(—)*
Credit Default Swap Contracts		—			(199	)		—		—		(199	)		(—)*
Total Other Financial Instruments**	$	(1,173	)	$	301		$	—	$	—	$	(872	)

See accompanying notes which are an integral part of the financial statements.

116 Strategic Bond Fund

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Schedule of Investments, continued — December 31, 2017

* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.
Investments in which significant unobservable inputs (Level 3) were used in determining a fair value for the period ended
December 31, 2017, were less than 1% of net assets.

Amounts in thousands
	Fair Value
Country Exposure		$
Argentina		1,055
Australia		8,709
Austria		423
Bermuda		876
Brazil		5,602
Canada		14,166
Cayman Islands		5,194
Chile		915
China		887
Colombia		4,842
Curacao		36
Denmark		171
Finland		818
France		3,300
Germany		1,657
Guernsey		344
India		509
Indonesia		1,230
Ireland		4,086
Italy		718
Japan		3,913
Kuwait		213
Luxembourg		747
Malaysia		2,118
Mexico		8,774
Netherlands		10,282
New Zealand		4,765
Norway		909
Panama		247
Peru		2,854
Poland		1,622
Russia		1,453
Singapore		2,753
South Korea		1,442
Spain		286
Sweden		2,743
Switzerland		4,126
Turkey		222
United Arab Emirates		1,137
United Kingdom		15,571
United States		815,224

See accompanying notes which are an integral part of the financial statements.

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Schedule of Investments, continued — December 31, 2017

Amounts in thousands
	Fair Value
Country Exposure		$
Venezuela, Bolivarian Republic of		816
Virgin Islands, British		250
Total Investments		938,005

See accompanying notes which are an integral part of the financial statements.

118 Strategic Bond Fund

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Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

				Foreign
	Credit			Currency			Interest Rate
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts
Location: Statement of Assets and Liabilities - Assets
Investments, at fair value*	$	—		$	—		$	140
Unrealized appreciation on foreign currency exchange contracts		—			2,245			—
Variation margin on futures contracts**		—			—			910
Interest rate swap contracts, at fair value		—			—			218
Credit default swap contracts, at fair value		53			—			—
Total	$	53		$	2,245		$	1,268
Location: Statement of Assets and Liabilities - Liabilities
Variation margin on futures contracts**	$	—		$	10		$	2,038
Unrealized depreciation on foreign currency exchange contracts		—			1,972			—
Options written, at fair value		—			—			35
Interest rate swap contracts, at fair value		—			—			44
Credit default swap contracts, at fair value		199			—			—
Total	$	199		$	1,982		$	2,117
				Foreign
	Credit			Currency			Interest Rate
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts
Location: Statement of Operations - Net realized gain (loss)
Investments***	$	—		$	—		$	(1,123	)
Futures contracts		—			—			(9	)
Options written		—			—			445
Total return swap contracts		—			—			761
Interest rate swap contracts		—			—			489
Credit default swap contracts		22			—			—
Foreign currency exchange contracts		—			(3,226	)		—
Total	$	22		$	(3,226	)	$	563
Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Investments****	$	—		$	(40	)	$	(3	)
Futures contracts		—			(76	)		732
Options written		—			28			2
Total return swap contracts		—			—			(36	)
Interest rate swap contracts		—			—			(637	)
Credit default swap contracts		(13	)		—			—
Foreign currency exchange contracts		—			675			—
Total	$	(13	)	$	587		$	58

* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Includes net change in unrealized appreciation/depreciation on purchased options as reported in the Schedule of Investments.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

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Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Assets and Derivative Assets
				Gross			Net Amounts
				Amounts				of Assets
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Assets		Assets	Liabilities				Liabilities
Options Purchased Contracts	Investments, at fair value	$	140		$	—    $		140
Foreign Currency Exchange Contracts	Unrealized appreciation on foreign currency exchange contracts		2,245			—		2,245
Futures Contracts	Variation margin on futures contracts		2,089			—		2,089
Interest Rate Swap Contracts	Interest rate swap contracts, at fair value		218			—		218
Credit Default Swap Contracts	Credit default swap contracts, at fair value		53			—		53
Total Financial and Derivative Assets			4,745			—		4,745
Financial and Derivative Assets not subject to a netting agreement			(2,383	)		—		(2,383	)
Total Financial and Derivative Assets subject to a netting agreement		$	2,362		$	—    $		2,362

Financial Assets, Derivative Assets, and Collateral Held by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
		of Assets
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty		Liabilities	Instruments					Received^	Net Amount
Bank of America	$	1,232		$	158		$	—	$       1,074
Bank of Montreal		106			39			—	67
Barclays		42			17			—	25
Citigroup		159			159			—	—
Commonwealth Bank of Australia		103			36			—	67
Goldman Sachs		16			—			—	16
HSBC		7			—			—	7
JPMorgan Chase		425			425			—	—
State Street		245			245			—	—
Westpac		27			27			—	—
Total	$	2,362		$	1,106		$	—	$       1,256

See accompanying notes which are an integral part of the financial statements.

120 Strategic Bond Fund

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Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
December 31, 2017

Amounts in thousands
Offsetting of Financial Liabilities and Derivative Liabilities
				Gross			Net Amounts
				Amounts			of Liabilities
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Liabilities	Liabilities		Liabilities				Liabilities
Futures Contracts	Variation margin on futures contracts	$	129		$	—    $		129
Foreign Currency Exchange Contracts	Unrealized depreciation on foreign currency exchange contracts		1,972			—		1,972
Options Written Contracts	Options written, at fair value		35			—		35
Interest Rate Swap Contracts	Interest rate swap contracts, at fair value		44			—		44
Credit Default Swap Contracts	Credit default swap contracts, at fair value		199			—		199
Total Financial and Derivative Liabilities			2,379			—		2,379
Financial and Derivative Liabilities not subject to a netting agreement			(373	)		—		(373	)
Total Financial and Derivative Liabilities subject to a netting agreement		$	2,006		$	—    $		2,006

Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Liabilities
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty		Liabilities	Instruments			Pledged^     Net Amount
Bank of America	$	158		$	158		$	—	$	—
Bank of Montreal		39			39			—		—
Barclays		17			17			—		—
Citigroup		214			159			30		25
Commonwealth Bank of Australia		36			36			—		—
JPMorgan Chase		860			425			410		25
State Street		611			245			—		366
Westpac		71			27			—		44
Total	$	2,006		$	1,106		$	440	$	460

^      Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

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Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	934,648
Investments, at fair value(>)		938,005
Cash		9,649
Cash (restricted)(a)(b)(c)		7,857
Foreign currency holdings(^)		969
Unrealized appreciation on foreign currency exchange contracts		2,245
Receivables:
Dividends and interest		4,965
Dividends from affiliated funds		61
Investments sold		31,994
Fund shares sold		156
Variation margin on futures contracts		2,089
Interest rate swap contracts, at fair value(•)		218
Credit default swap contracts, at fair value(+)		53
Total assets		998,261
Liabilities
Payables:
Due to broker (d)		287
Investments purchased		87,358
Fund shares redeemed		233
Accrued fees to affiliates		467
Other accrued expenses		167
Variation margin on futures contracts		129
Deferred capital gains tax liability		3
Unrealized depreciation on foreign currency exchange contracts		1,972
Options written, at fair value(x)		35
Interest rate swap contracts, at fair value(•)		44
Credit default swap contracts, at fair value(+)		199
Total liabilities		90,894
Net Assets	$	907,367

See accompanying notes which are an integral part of the financial statements.

122 Strategic Bond Fund

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Statement of Assets and Liabilities, continued — December 31, 2017

Amounts in thousands
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	(1,026	)
Accumulated net realized gain (loss)		(8,461	)
Unrealized appreciation (depreciation) on:
Investments (net of deferred tax liability for foreign capital gains taxes)		3,357
Investments in affiliated funds		(3	)
Futures contracts		(1,138	)
Options written		9
Interest rate swap contracts		57
Credit default swap contracts		(13	)
Foreign currency exchange contracts		273
Foreign currency-related transactions		20
Shares of beneficial interest		875
Additional paid-in capital		913,417
Net Assets	$	907,367
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	10.37
Net assets	$	907,366,586
Shares outstanding ($. 01 par value)		87,498,295
Amounts in thousands
(^)     Foreign currency holdings - cost	$	973
(x)     Premiums received on options written	$	44
(+)     Credit default swap contracts - premiums paid (received)	$	(133	)
(•)      Interest rate swap contracts - premiums paid (received)	$	117
(>)     Investments in affiliates, U. S. Cash Management Fund	$	57,316
(a)     Cash Collateral for Futures	$	6,127
(b)      Cash Collateral for Swaps	$	983
(c)     Cash Collateral for TBAs	$	747
(d)       Due to Broker for Futures	$	287
(#) Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

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Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Dividends	$	28
Dividends from affiliated funds .		769
Interest		21,464
Total investment income		22,261
Expenses
Advisory fees		4,804
Administrative fees		437
Custodian fees		262
Transfer agent fees		38
Professional fees		119
Trustees’ fees		23
Printing fees		121
Miscellaneous		25
Expenses before reductions		5,829
Expense reductions		(56	)
Net expenses		5,773
Net investment income (loss)		16,488
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (net of deferred tax liability for foreign capital gains taxes)		(1,202	)
Investments in affiliated funds .		(3	)
Futures contracts		(9	)
Options written		445
Foreign currency exchange contracts		(3,226	)
Total return swap contracts		761
Interest rate swap contracts		489
Credit default swap contracts		22
Foreign currency-related transactions		228
Net realized gain (loss)		(2,495	)
Net change in unrealized appreciation (depreciation) on:
Investments (net of deferred tax liability for foreign capital gains taxes)		17,851
Investments in affiliated funds		(9	)
Futures contracts		656
Options written		30
Foreign currency exchange contracts		675
Total return swap contracts		(36	)
Interest rate swap contracts		(637	)
Credit default swap contracts		(13	)
Foreign currency-related transactions		61
Net change in unrealized appreciation (depreciation)		18,578
Net realized and unrealized gain (loss)		16,083
Net Increase (Decrease) in Net Assets from Operations	$	32,571

See accompanying notes which are an integral part of the financial statements.

124 Strategic Bond Fund

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Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	16,488		$	14,984
Net realized gain (loss)		(2,495	)		14,365
Net change in unrealized appreciation (depreciation)		18,578			(2,455	)
Net increase (decrease) in net assets from operations		32,571			26,894
Distributions
From net investment income		(11,721	)		(13,853	)
From net realized gain		—			(24,296	)
Net decrease in net assets from distributions		(11,721	)		(38,149	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		35,795			6,068
Total Net Increase (Decrease) in Net Assets		56,645			(5,187	)
Net Assets
Beginning of period		850,722			855,909
End of period	$	907,367		$	850,722
Undistributed (overdistributed) net investment income included in net assets	$	(1,026	)	$	(1,821	)

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	6,949		$	71,566		4,915		$	52,175
Proceeds from reinvestment of distributions	1,139			11,721		3,722			38,149
Payments for shares redeemed	(4,638	)		(47,492	)	(7,908	)		(84,256	)
Total increase (decrease)	3,450		$	35,795		729		$	6,068

See accompanying notes which are an integral part of the financial statements.

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Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

		$		$		$		$		$		$
	Net Asset Value,			Net	Net Realized			Total from		Distributions		Distributions
	Beginning of		Investment		and Unrealized			Investment		from Net		from Net
		Period	Income (Loss)(a)(b)		Gain (Loss)			Operations		Investment Income		Realized Gain
December 31, 2017		10.12		. 20		. 19		. 39		(. 14	)	—
December 31, 2016		10.27		. 18		. 14		. 32		(. 17	)	(. 30	)
December 31, 2015		10.66		. 16		(. 17	)	(. 01	)	(. 26	)	(. 12	)
December 31, 2014		10.46		. 15		. 43		. 58		(. 17	)	(. 21	)
December 31, 2013		10.81		. 18		(. 35	)	(. 17	)	(. 15	)	(. 03	)

See accompanying notes which are an integral part of the financial statements.

126 Strategic Bond Fund

								%	%		%
			$			$		Ratio of Expenses	Ratio of Expenses	Ratio of Net
			Net Asset Value,	%		Net Assets,		to Average	to Average	Investment Income		%
	$		End of	Total		End of Period		Net Assets,	Net Assets,	to Average		Portfolio
Total Distributions			Period	Return(d)		(000	)	Gross	Net(b)	Net Assets(b)		Turnover Rate
	(. 14	)	10.37	3.86		907,367		. 67	. 66		1.89	143
	(. 47	)	10.12	3.10		850,722		. 67	. 65		1.72	262
	(. 38	)	10.27	(. 14	)	855,909		. 67	. 64		1.49	225
	(. 38	)	10.66	5.55		839,458		. 69	. 64		1.44	173
	(. 18	)	10.46	(1.55	)	763,901		. 67	. 62		1.73	133

See accompanying notes which are an integral part of the financial statements.

Strategic Bond Fund 127

Russell Investment Funds
Strategic Bond Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:

Advisory fees	$	422,733
Administration fees		38,430
Transfer agent fees		3,382
Trustee fees		2,021
	$	466,566

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

		Fair Value,							Change in
	Beginning of					Realized Gain			Unrealized	Fair Value, End				Income	Capital Gains
		Period		Purchases		Sales		(Loss)	Gain (Loss)	of Period		Distributions			Distributions
U. S. Cash Management Fund	$	73,380	$	710,503	$	726,555	$	(3)	$        (9)	$	57,316		$	769		$	—
	$	73,380	$	710,503	$	726,555	$	(3)	$        (9)	$	57,316		$	769		$	—

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	937,497,622
Unrealized Appreciation	$	366,582
Unrealized Depreciation		(468,365	)
Net Unrealized Appreciation (Depreciation)	$	(101,783	)
Undistributed Ordinary Income	$	581,567
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	(7,386,098	)
Tax Composition of Distributions
Ordinary Income	$	11,720,484

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent book-tax differences.  Book-tax
differences are primarily due to foreign currency gains and losses, reclassifications of dividends, differences in treatment of income
from swaps, net operating losses, investments in partnerships, investments in passive foreign investment companies (PFICs), tax
straddle transaction, use of tax equalization and foreign capital gains taxes.  These adjustments have no impact on the net assets. At
December 31, 2017, the Statement of Assets and Liabilities have been adjusted by the following amounts (in thousands):

Undistributed net investment income	$	(3,972	)
Accumulated net realized gain (loss)		3,972
Additional paid-in capital		—

See accompanying notes which are an integral part of the financial statements.

128 Strategic Bond Fund

Russell Investment Funds
Global Real Estate Securities Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

Global Real Estate Securities Fund			FTSE EPRA/NAREIT Developed Real Estate Index (Net)**
	Total			Total
	Return			Return
1 Year	11.80	%	1 Year	10.36	%
5 Years	6.55	%§	5 Years	6.32	%§
10 Years	5.03	%§	10 Years	3.28	%§
			Russell Developed Index (Net) ***
				Total
				Return
			1 Year	22.39	%
			5 Years	11.90	%§
			10 Years	5.35	%§
			Global Real Estate Linked Benchmark ****
				Total
				Return
			1 Year	10.36	%
			5 Years	6.32	%§
			10 Years	5.03	%§

Global Real Estate Securities Fund 129

Russell Investment Funds
Global Real Estate Securities Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The Global Real Estate Securities Fund (the “Fund”) employs	delivered negative returns and continued to display a bifurcated
a multi-manager approach whereby portions of the Fund are	performance pattern, with J-REITs struggling due to capital
allocated to different money manager strategies. Fund assets not	outflows and concerns over higher global interest rates while
allocated to money managers are managed by Russell Investment	Japanese developers fared comparatively better. U. S. REITs
Management, LLC (“RIM”), the Fund’s advisor. RIM may change	lagged relative to property companies in most other developed
the allocation of the Fund’s assets among money managers at	markets, although there was significant dispersion in performance
any time. An exemptive order from the Securities and Exchange	within the U. S. by property type. The Fund was positioned with an
Commission (“SEC”) permits RIM to engage or terminate a money	underweight position in North America and Continental Europe
manager at any time, subject to approval by the Fund’s Board,	and an overweight to United Kingdom and Japan, resulting in a
without a shareholder vote. Pursuant to the terms of the exemptive	neutral contribution from regional allocation.
order, the Fund is required to notify its shareholders within 90	With respect to property sectors, there was an unusually wide
days of when a money manager begins providing services. As of	distribution of performance by property type. Data centers and
December 31, 2017, the Fund had three money managers.	industrial REITs experienced strong double-digit percentage
What is the Fund’s investment objective?	gains, backed by very strong fundamental growth. The retail
The Fund seeks to provide current income and long term capital	sector experienced large declines due to ongoing store closures
growth.	and concerns around e-commerce, though the sector posted
	partial recovery in the fourth quarter propelled upward by several
How did the Fund perform relative to its benchmark for the	major M&A announcements. The more bond-like, yield-oriented
fiscal year ended December 31, 2017?	health care and net lease sectors were weak performers while
For the fiscal year ended December 31, 2017, the Fund gained	property types with shorter lease terms, including self-storage
11.80%. This is compared to the Fund’s benchmark, the FTSE	and residential, finished with positive performance. These
EPRA/NAREIT Developed Real Estate Index (Net), which gained	trends in property sector performance posed a tailwind for Fund
10.36% during the same period. The Fund’s performance includes	performance, as the portfolio favors property types with stronger
operating expenses, whereas index returns are unmanaged and do	underlying fundamentals and growth potential, rather than
not include expenses of any kind.	seeking to maximize yield.
For the fiscal year ended December 31, 2017, the Morningstar®	How did the investment strategies and techniques employed
Insurance Global Real Estate Category, a group of funds that	by the Fund and its money managers affect its benchmark-
Morningstar considers to have investment strategies similar to	relative performance?
those of the Fund, gained 11.19%. This result serves as a peer	At the Fund level, stock selection results were positive within
comparison and is expressed net of operating expenses.	the U. S. retail, lodging and data center sectors as well as the UK.
How did the market conditions described in the Market	From a sector allocation perspective, underweight positions to the
Summary report affect the Fund’s performance?	U. S. health care and net lease sectors as well as Japanese REITs
For the fiscal year ended December 31, 2017, the global listed	were beneficial. Detracting from performance was an overweight
property market, as measured by the FTSE EPRA/NAREIT	to the U. S. office sector and negative stock selection within Hong
Developed Real Estate Index (Net), delivered a 10.36% return.	Kong and Japan developers.
Underpinned by stable economic growth, the global property	The Fund employs discretionary money managers. The Fund’s
market sustained positive momentum during the period, although	discretionary money managers select the individual portfolio
real estate investment trusts (“REITs”) underperformed broader	securities for the assets assigned to them. Fund assets not
equities. In the U. S. , the Federal Reserve increased interest	allocated to discretionary money managers include the Fund’s
rates three times during the fiscal year, though the 10-year U. S.	cash balances and assets which may be managed directly by
Treasury yield was roughly flat year-over- year.	RIM to effect the Fund’s investment strategies and/or to actively
Within the global property securities market, Asia ex-Japan	manage the Fund’s overall exposures by investing in securities or
led the index with strong positive returns, while North America	other instruments that RIM believes will achieve the desired risk/
was the worst performer of the major regions. Singapore was the	return profile for the Fund.
best performer globally, helped by a recovery in its residential	With respect to certain of the Fund’s money managers, Cohen &
and office markets. Also delivering positive performance was	Steers Capital Management, Inc. , Cohen & Steers UK Limited
Europe, which benefited from subsiding political risk and	and Cohen & Steers Asia Limited (together, “Cohen”) strongly
strong broader equity market performance. In Japan, the market	outperformed the Fund’s benchmark for the fiscal year. Cohen

130 Global Real Estate Securities Fund

Russell Investment Funds
Global Real Estate Securities Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

seeks to generate excess returns through a combination of	modestly positive impact on absolute performance, as equity
fundamental bottom-up stock selection and top-down regional	markets delivered positive returns ahead of cash.
and property type allocation decisions. Stock selection was a key
contributor to outperformance. Results were positive within U. S.	Describe any changes to the Fund’s structure or the money
data center and lodging sectors as well as UK and Continental	manager line-up.
Europe. Underweight positions in the retail sector and J-REITs	There were no changes to the Fund’s structure or money manager
were beneficial. Modestly detracting from performance were	line-up during the period.
underweights to the U. S. industrial sector, Hong Kong and	Money Managers as of December 31,
Singapore.	2017	Styles
Morgan Stanley Investment Management, Inc. , Morgan Stanley	Cohen & Steers Capital Management, Inc. ,
Investment Management Limited and Morgan Stanley Investment	Cohen & Steers UK Limited and Cohen &
Management Company (together, “Morgan Stanley”) modestly	Steers Asia Limited	Market-Oriented
outperformed the Fund’s benchmark during the fiscal year. Morgan	Morgan Stanley Investment Management
Stanley’s process focuses on identifying listed property companies	Inc. , Morgan Stanley Investment
that trade at discounts relative to underlying asset values. Positive	Management Limited and Morgan Stanley
	Investment Management Company	Value
stock selection within the U. S. retail and lodging sectors and an	RREEF America L. L. C. , Deutsche
underweight to the U. S. health care contributed to performance.	Investments Australia Limited and Deutsche
An overweight position to the U. K. and an underweight to J-REITs	Alternatives Asset Management (Global)
were beneficial. Detracting from performance were underweights	Limited operating under the brand name
to Singapore and Continental Europe and an overweight to the	Deutsche Asset Management	Market-Oriented
U. S. office sector.	The views expressed in this report reflect those of the
During the period, RIM continued to utilize a strategy to implement	portfolio managers only through the end of the period
regional and property sector tilting through the direct purchase	covered by the report. These views do not necessarily
of real estate stocks. The strategy seeks to position the portfolio	represent the views of RIM or any other person in RIM or
to meet RIM’s overall preferred positioning with respect to	any other affiliated organization. These views are subject to
regional and property type exposures. The strategy outperformed	change at any time based upon market conditions or other
relative to the Fund’s benchmark for the one-year period. Positive	events, and RIM disclaims any responsibility to update the
performance was driven by underweights to J-REITs and the U. S.	views contained herein. These views should not be relied
health care sector as well as an overweight position to Hong Kong.	on as investment advice and, because investment decisions
Overweights to Japan developers and U. S. malls had a negative	for a Russell Investment Funds (“RIF”) Fund are based on
impact.	numerous factors, should not be relied on as an indication
	of investment decisions of any RIF Fund.
During the period, the Fund used index futures and swap contracts
to equitize the Fund’s cash. The use of these derivatives had a

Global Real Estate Securities Fund 131

Russell Investment Funds
Global Real Estate Securities Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

* Assumes initial investment on January 1, 2008.

** The FTSE EPRA/NAREIT Developed Real Estate Index (Net) is an unmanaged market-weighted total return index, which consists of publicly traded equity
REITs and listed property companies from developed markets whose floats are larger than $100 million and derive more than half of their revenue from property-
related activities and is net of dividend withholding taxes.

*** The Russell Developed Index (Net) measures the performance of the investable securities in developed countries globally and is net of tax on dividends from
foreign holdings.

**** The Global Real Estate Linked Benchmark provides a means to compare the Fund’s average annual returns to a secondary benchmark that takes into account
historical changes in the Fund’s primary benchmark. The Global Real Estate Linked Benchmark represents the returns of the FTSE NAREIT Equity REIT
Index through September 30, 2010 and the returns of the FTSE EPRA/NAREIT Developed Real Estate Index (net) thereafter.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

132 Global Real Estate Securities Fund

Russell Investment Funds
Global Real Estate Securities Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this
administrative fees and other Fund expenses. The Example is	section do not reflect any Insurance Company Separate Account
intended to help you understand your ongoing costs (in dollars)	Policy Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017.	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,059.70	$	1,020.72
The information in the table under the heading “Actual	Expenses Paid During Period*	$	4.62	$	4.53
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 0.89%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) .
$1,000 (for example, an $8,600 account value divided by $1,000
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

Global Real Estate Securities Fund 133

Russell Investment Funds
Global Real Estate Securities Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
Common Stocks - 97.6%			Hong Kong - 11.1%
Australia - 4.9%			Champion REIT(ö)	789,433	579
Arena REIT(ö)	134,618	237	CK Asset Holdings, Ltd.	1,641,406	14,347
Charter Hall Group - ADR(ö)	660,487	3,095	Hang Lung Properties, Ltd. - ADR	2,684,620	6,552
Dexus Property Group(ö)	1,053,827	8,004	Henderson Land Development Co. , Ltd.	564,042	3,717
Goodman Group(ö)	1,275,398	8,361	Hongkong Land Holdings, Ltd.	1,719,600	12,091
GPT Group (The)(ö)	1,184,770	4,716	Hopewell Holdings, Ltd.	16,500	61
Mirvac Group(ö)	2,636,827	4,821	Hysan Development Co. , Ltd.	960,028	5,096
Scentre Group(ö)	2,077,469	6,780	Link Real Estate Investment Trust(ö)	1,303,349	12,078
Viva Energy(ö)	607,884	1,071	New World Development Co. , Ltd.	2,615,821	3,930
Westfield Corp. (ö)	912,549	6,762	Sino Land Co. , Ltd.	1,796,677	3,181
		43,847	Sun Hung Kai Properties, Ltd.	1,312,652	21,864
			Swire Properties, Ltd.	3,183,713	10,269
Austria - 0.5%			Wharf Holdings, Ltd. (The)	274,434	949
Buwog AG	118,481	4,078	Wharf Real Estate Investment Co. , Ltd.
			(Æ)	562,434	3,744
Belgium - 0.1%			Wheelock & Co. , Ltd.	176,000	1,258
Aedifica(ö)	5,288	500			99,716
VGP NV	7,201	536
		1,036	Ireland - 0.3%
			Green REIT PLC(ö)	553,783	1,033
Brazil - 0.1%			Hibernia REIT PLC(ö)	1,091,180	2,003
BR Malls Participacoes SA	334,068	1,281			3,036
Canada - 2.4%			Japan - 8.8%
Allied Properties Real Estate Investment			Activia Properties, Inc. (ö)	720	3,013
Trust(ö)	176,921	5,922	Daiwa House REIT Investment Corp. (ö)	714	1,696
Boardwalk Real Estate Investment			Frontier Real Estate Investment Corp. (ö)	384	1,492
Trust(Ñ)(ö)	99,845	3,423	Global One Real Estate Investment
Canadian Apartment Properties(ö)	154,186	4,578	Corp. (ö)	929	3,290
Crombie Real Estate Investment Trust(ö)	177	2	GLP J-REIT(ö)	65	70
Dream Office Real Estate Investment			Hulic Co. , Ltd.	411,700	4,608
Trust(ö)	148,605	2,620	Ichigo Hotel REIT Investment Corp. (ö)	215	233
First Capital Realty, Inc. Class A	66,988	1,104	Invesco Office J-REIT, Inc. (ö)	234	227
Granite Real Estate Investment Trust(ö)	48,634	1,906	Invincible Investment Corp. (ö)	5,121	2,177
H&R Real Estate Investment Trust(ö)	37	1	Japan Logistics Fund, Inc. (ö)	923	1,702
RioCan Real Estate Investment Trust(ö)	94,663	1,834	Japan Real Estate Investment Corp. (ö)	522	2,478
		21,390	Japan Retail Fund Investment Corp. (ö)	1,662	3,046
			Kenedix Office Investment Corp. Class
Finland - 0.1%			A(ö)	460	2,611
Citycon OYJ	224,059	580	Mitsubishi Estate Co. , Ltd.	844,000	14,666
			Mitsui Fudosan Co. , Ltd.	837,620	18,779
France - 3.7%			Mori Hills REIT Investment Corp. Class
Fonciere Des Regions(ö)	17,884	2,027	A(ö)	1,438	1,738
Gecina SA(ö)	58,169	10,733	Mori Trust Sogo REIT, Inc. (ö)	255	355
Icad, Inc. (ö)	9,884	972	Nippon Building Fund, Inc. (ö)	702	3,434
Klepierre SA - GDR(ö)	237,157	10,427	Nippon Healthcare Investment Corp. (ö)	71	103
Unibail-Rodamco SE(ö)	37,194	9,371	NTT Urban Development Corp.	234,700	2,717
		33,530	Premier Investment Corp. (ö)	2,163	2,047
			Sekisui House REIT, Inc. (ö)	1,010	1,179
Germany - 2.9%			Sumitomo Realty & Development Co. ,
ADO Properties SA(Þ)	55,568	2,819	Ltd.	112,000	3,677
Alstria Office REIT-AG(ö)	237,956	3,675	Tokyo Tatemono Co. , Ltd.	279,194	3,767
Deutsche Wohnen SE	244,441	10,658			79,105
TLG Immobilien AG	69,888	1,856
Vonovia SE	150,516	7,450	Netherlands - 0.7%
		26,458	Eurocommercial Properties NV	56,415	2,457

See accompanying notes which are an integral part of the financial statements.

134 Global Real Estate Securities Fund

Russell Investment Funds
Global Real Estate Securities Fund

Schedule of Investments, continued — December 31, 2017

Amounts in thousands (except share amounts)			Amounts in thousands (except share amounts)
	Principal	Fair		Principal	Fair
	Amount ($)	Value		Amount ($)	Value
	or Shares	$		or Shares	$
InterXion Holding NV(Æ)	65,756	3,875	Alexandria Real Estate Equities, Inc. (ö)	59,515	7,772
		6,332	American Campus Communities, Inc. (ö)	63,466	2,604
			American Homes 4 Rent Class A(ö)	15,640	342
Norway - 0.3%			American Tower Corp. (ö)	60,630	8,650
Entra ASA(Å)	172,441	2,562	Apartment Investment & Management
			Co. Class A(ö)	110,627	4,835
Singapore - 0.9%			AvalonBay Communities, Inc. (ö)	60,013	10,707
CapitaLand, Ltd.	97,300	256	Boston Properties, Inc. (ö)	132,889	17,280
CDL Hospitality Trusts(Æ)	1,075,821	1,359	Brixmor Property Group, Inc. (ö)	114,459	2,136
City Developments, Ltd.	329,100	3,061	Camden Property Trust(ö)	107,815	9,926
Frasers Logistics & Industrial Trust(ö)	489,200	424	CareTrust REIT, Inc. (ö)	36,746	616
Mapletree Logistics Trust(ö)	483,700	477	CBL & Associates Properties, Inc. (Ñ)(ö)	5,459	31
Suntec Real Estate Investment Trust(ö)	1,319,200	2,118	CoreSite Realty Corp. Class A(ö)	24,403	2,780
		7,695	Corporate Office Properties Trust(ö)	76,398	2,231
			Cousins Properties, Inc. (ö)	420,815	3,893
Spain - 1.6%			CubeSmart(ö)	89,858	2,599
Aedas Homes SAU(Æ)(Þ)	36,100	1,324	CyrusOne, Inc. (ö)	25,971	1,546
Hispania Activos Inmobiliarios Socimi			DDR Corp. (ö)	59,319	532
SA(ö)	33,466	629	Digital Realty Trust, Inc. (ö)	58,263	6,636
Inmobiliaria Colonial Socimi SA(ö)	208,779	2,071	Douglas Emmett, Inc. (ö)	217,892	8,947
Merlin Properties Socimi SA(ö)	777,160	10,521	Duke Realty Corp. (ö)	136,041	3,702
		14,545	Empire State Realty Trust, Inc. Class
			A(ö)	269,263	5,528
Sweden - 1.0%			Equinix, Inc. (ö)	7,795	3,533
Atrium Ljungberg AB Class B	24,090	382	Equity LifeStyle Properties, Inc. Class
Castellum AB	169,077	2,852	A(ö)	112,002	9,971
Fastighets AB Balder Class B(Æ)	75,029	2,006	Equity Residential(ö)	181,625	11,582
Hufvudstaden AB Class A	155,780	2,492	Essex Property Trust, Inc. (ö)	44,273	10,686
Pandox AB	84,279	1,628	Extended Stay America, Inc.	199,626	3,793
		9,360	Extra Space Storage, Inc. (ö)	156,096	13,651
			Federal Realty Investment Trust(ö)	12,539	1,665
Switzerland - 0.3%			Forest City Realty Trust, Inc. Class A(ö)	52,711	1,271
PSP Swiss Property AG	28,599	2,710	GEO Group, Inc. (The)(ö)	40,799	963
			GGP, Inc. (ö)	816,132	19,090
United Kingdom - 8.3%			HCP, Inc. (ö)	143,859	3,752
Assura PLC(ö)	3,113,286	2,686	Healthcare Realty Trust, Inc. (ö)	156,924	5,040
Big Yellow Group PLC(ö)	105,332	1,237	Hilton Worldwide Holdings, Inc.	91,350	7,295
British Land Co. PLC (The)(ö)	1,311,293	12,235	Host Hotels & Resorts, Inc. (ö)	371,818	7,381
Capital & Counties Properties PLC	93	—	Hudson Pacific Properties, Inc. (ö)	81,168	2,780
Capital & Regional PLC(ö)	289,067	228	Invitation Homes, Inc. (ö)	231,793	5,463
Derwent London PLC(ö)	162,869	6,854	Iron Mountain, Inc. (ö)	24,633	929
Great Portland Estates PLC	1,057,765	9,827	JBG Smith Properties(ö)	74,962	2,603
Hammerson PLC(Ñ)(ö)	1,102,757	8,140	Kilroy Realty Corp. (ö)	105,398	7,868
Intu Properties PLC Class H(ö)	228,467	780	LaSalle Hotel Properties(ö)	157,822	4,430
Land Securities Group PLC(ö)	894,474	12,131	Life Storage, Inc. (ö)	53,859	4,797
LondonMetric Property PLC(ö)	810,202	2,033	Macerich Co. (The)(ö)	156,717	10,293
LXB Retail Properties PLC(Æ)(Å)	353,168	109	Mack-Cali Realty Corp. (ö)	102,523	2,210
PRS REIT PLC (The)(Æ)(ö)(Å)	602,462	860	MGM Growth Properties LLC Class A(Ñ)
Safestore Holdings PLC(ö)	247,275	1,667	(ö)	16,361	477
Segro PLC(ö)	901,533	7,141	Mid-America Apartment Communities,
St. Modwen Properties PLC	312,245	1,708	Inc. (ö)	16,066	1,615
Tritax Big Box REIT PLC(ö)	652,217	1,311	Omega Healthcare Investors, Inc. (Ñ)(ö)	79,201	2,181
UNITE Group PLC (The)(ö)	369,549	4,014	Paramount Group, Inc. (ö)	182,050	2,886
Warehouse REIT PLC(Æ)(ö)	189,837	268	Pebblebrook Hotel Trust(Ñ)(ö)	94,637	3,517
Workspace Group PLC(ö)	75,547	1,022	Pennsylvania Real Estate Investment
		74,251	Trust(Ñ)(ö)	42,077	500
			Prologis, Inc. (ö)	276,297	17,824
United States - 49.6%			Public Storage(ö)	33,907	7,086
Agree Realty Corp. (ö)	69,464	3,573

See accompanying notes which are an integral part of the financial statements.

Global Real Estate Securities Fund 135

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Schedule of Investments, continued — December 31, 2017

	Amounts in thousands (except share amounts)
		Principal		Fair
		Amount ($)		Value
		or Shares		$
	Realty Income Corp. (ö)	154,056		8,785
	Regency Centers Corp. (ö)	103,270		7,144
	Retail Properties of America, Inc. Class
	A(ö)	265,017		3,562
	Rexford Industrial Realty, Inc. (ö)	230,682		6,727
	RLJ Lodging Trust(ö)	65,232		1,433
	Simon Property Group, Inc. (ö)	253,265		43,495
	SL Green Realty Corp. (ö)	113,978		11,504
	STORE Capital Corp. (ö)	150,194		3,911
	Sun Communities, Inc. (ö)	70,570		6,547
	Sunstone Hotel Investors, Inc. (ö)	446,760		7,385
	Switch, Inc. Class A(Ñ)	2,784		51
	Tanger Factory Outlet Centers, Inc. (Ñ)(ö)	57,763		1,532
	Taubman Centers, Inc. (ö)	57,895		3,788
	UDR, Inc. (ö)	261,194		10,060
	Urban Edge Properties(ö)	90,190		2,299
	Ventas, Inc. (ö)	144,963		8,699
	Vornado Realty Trust(ö)	218,809		17,106
	Washington Prime Group, Inc. (Ñ)(ö)	23,036		164
	Weingarten Realty Investors(ö)	184,583		6,067
	Welltower, Inc. (ö)	139,885		8,921
	Weyerhaeuser Co. (ö)	88,511		3,120
				446,298
	Total Common Stocks
	(cost $764,173)			877,810
Short	-Term Investments - 1.7%
	United States - 1.7%
	U. S. Cash Management Fund(@)	15,820,435	(8)	15,820
	Total Short-Term Investments
	(cost $15,821)			15,820
	Other Securities - 1.2%
	U. S. Cash Collateral Fund(×)(@)	10,495,504	(8)	10,496
	Total Other Securities
	(cost $10,496)			10,496
	Total Investments 100.5%
	(identified cost $790,490)			904,126
	Other Assets and Liabilities, Net
-	(0.5%)			(4,672	)
	Net Assets - 100.0%			899,454

See accompanying notes which are an integral part of the financial statements.

136 Global Real Estate Securities Fund

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Schedule of Investments, continued — December 31, 2017

Restricted Securities
Amounts in thousands (except share and cost per unit amounts)
					Principal			Cost per		Cost		Fair Value
% of Net Assets		Acquisition			Amount ($)				Unit	(000	)	(000	)
Securities		Date			or shares				$	$		$
0.4%							��
Entra ASA		01/06/15	NOK			48,575			8.74	425		722
Entra ASA		11/01/16	NOK			114,760			10.36	1,188		1,705
Entra ASA		11/18/16	NOK				9,106		11.84	108		135
LXB Retail Properties PLC		05/28/14	GBP			353,168			2.03	717		109
PRS REIT PLC (The)		05/31/17	GBP			571,559			1.37	783		816
PRS REIT PLC (The)		07/17/17	GBP			30,903			1.36	42		44
												3,531
For a description of restricted securities see note 7 in the Notes to Financial Statements.
Futures Contracts
Amounts in thousands (except contract amounts)
												Value and
												Unrealized
										Appreciation
		Number of				Notional			Expiration	(Depreciation)
		Contracts				Amount			Date			$
Long Positions
Dow U. S. Real Estate Index Futures			314		USD		10,092		03/18			27
FTSE/EPRA Europe Index Future			108		EUR			2,413	03/18			50
Hang Seng Index Futures				8	HKD		11,979		01/18			13
MSCI Singapore IX ETS Index Futures				15	SGD			582	01/18			3
S&P/TSX 60 Index Futures				4	CAD			766	03/18			1
SPI 200 Index Futures				9	AUD			1,355	03/18			2
TOPIX Index Futures				11	JPY		199,869		03/18			15
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)												111
Foreign Currency Exchange Contracts
Amounts in thousands
												Unrealized
												Appreciation
		Amount			Amount							(Depreciation)
Counterparty		Sold			Bought				Settlement Date			$
Bank of America	USD		222		AUD		290		03/22/18			4
Bank of America	USD		430		AUD		572		03/22/18			16
Bank of America	USD		59		CAD			74	01/02/18			—
Bank of America	USD		148		CAD		190		03/22/18			4
Bank of America	USD		252		CAD		323		03/22/18			6
Bank of America	USD		550		EUR		460		03/22/18			5
Bank of America	USD	1,323			EUR		1,115		03/22/18			20
Bank of America	USD		371		HKD		2,900		03/22/18			—
Bank of America	USD		633		HKD		4,932		03/22/18			—
Bank of America	USD		160		JPY		17,990		03/22/18			—
Bank of America	USD		322		JPY		36,220		03/22/18			1
Bank of America	USD		667		JPY		74,794		03/22/18			(1	)
Bank of America	USD		180		SGD		243		03/22/18			2
Bank of America	CAD		380		USD		296		03/22/18			(7	)
Bank of America	EUR		240		USD		284		03/22/18			(5	)
Bank of America	SGD		80		USD			59	03/22/18			(1	)
Bank of America	SGD		80		USD			59	03/22/18			(1	)
Bank of Montreal	USD		117		AUD		150		03/22/18			—
Bank of Montreal	USD		195		HKD		1,520		03/22/18			—
Bank of Montreal	USD		162		JPY		18,210		03/22/18			—
Brown Brothers Harriman	USD		151		CAD		190		03/22/18			—

See accompanying notes which are an integral part of the financial statements.

Global Real Estate Securities Fund 137

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Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in thousands
												Unrealized
												Appreciation
				Amount			Amount					(Depreciation)
Counterparty				Sold			Bought		Settlement Date			$
Brown Brothers Harriman				USD	53	HKD		417		01/03/18		—
Brown Brothers Harriman				AUD	150	USD		113		03/22/18		(4	)
Brown Brothers Harriman				AUD	150	USD		115		03/22/18		(2	)
Brown Brothers Harriman				EUR	56	USD		67		01/02/18		—
Brown Brothers Harriman				EUR	250	USD		297		03/22/18		(4	)
Brown Brothers Harriman				HKD	1,430	USD		183		03/22/18		—
Brown Brothers Harriman				HKD	1,460	USD		187		03/22/18		—
Brown Brothers Harriman				JPY	11,400	USD		101		01/04/18		—
Brown Brothers Harriman				JPY	18,060	USD		160		03/22/18		(1	)
Brown Brothers Harriman				JPY	36,170	USD		323		03/22/18		1
Brown Brothers Harriman				SEK	111	USD		14		01/02/18		—
Brown Brothers Harriman				SEK	158	USD		19		01/02/18		—
Brown Brothers Harriman				SEK	83	USD		10		01/03/18		—
Brown Brothers Harriman				SEK	230	USD		28		01/03/18		—
Commonwealth Bank of Australia				USD	430	AUD		572		03/22/18		16
Commonwealth Bank of Australia				USD	252	CAD		323		03/22/18		6
Commonwealth Bank of Australia				USD	1,324	EUR		1,115		03/22/18		20
Commonwealth Bank of Australia				USD	633	HKD		4,932		03/22/18		—
Commonwealth Bank of Australia				USD	668	JPY		74,794		03/22/18		(2	)
Commonwealth Bank of Australia				USD	180	SGD		243		03/22/18		2
Merrill Lynch				HKD	5,056	USD		647		01/02/18		—
State Street				EUR	6	USD		7		01/02/18		—
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts												75
Presentation of Portfolio Holdings
Amounts in thousands
				Fair Value
							Practical
Portfolio Summary		Level 1		Level 2	Level 3		Expedient (a)			Total	% of Net Assets
Common Stocks
Australia	$	—	$	43,847	$	—	$	—	$	43,847		4.9
Austria		—		4,078		—		—		4,078		0.5
Belgium		—		1,036		—		—		1,036		0.1
Brazil		—		1,281		—		—		1,281		0.1
Canada		21,390		—		—		—		21,390		2.4
Finland		—		580		—		—		580		0.1
France		6,608		26,922		—		—		33,530		3.7
Germany		—		26,458		—		—		26,458		2.9
Hong Kong		3,744		95,972		—		—		99,716		11.1
Ireland		—		3,036		—		—		3,036		0.3
Japan		—		79,105		—		—		79,105		8.8
Netherlands		3,875		2,457		—		—		6,332		0.7
Norway		—		2,562		—		—		2,562		0.3
Singapore		—		7,695		—		—		7,695		0.9
Spain		—		14,545		—		—		14,545		1.6
Sweden		—		9,360		—		—		9,360		1.0

See accompanying notes which are an integral part of the financial statements.

138 Global Real Estate Securities Fund

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Schedule of Investments, continued — December 31, 2017

Presentation of Portfolio Holdings
Amounts in thousands
				Fair Value
									Practical
Portfolio Summary		Level 1		Level 2			Level 3		Expedient (a)			Total		% of Net Assets
Switzerland		—		2,710				—		—		2,710			0.3
United Kingdom		—		74,251				—		—		74,251			8.3
United States		446,298		—				—		—		446,298			49.6
Short-Term Investments		—		—				—		15,820		15,820			1.7
Other Securities		—		—				—		10,496		10,496			1.2
Total Investments		481,915		395,895				—		26,316		904,126			100.5
Other Assets and Liabilities, Net															(0.5	)
															100.0
Other Financial Instruments
Assets
Futures Contracts		111		—				—		—		111			— *
Foreign Currency Exchange Contracts		—		103				—		—		103			— *
A
Liabilities
Foreign Currency Exchange Contracts		—		(28	)			—		—		(28	)		(—)*
Total Other Financial Instruments**	$	111	$	75		$		—	$	—	$	186

*	Less than 0.05% of net assets.
**	Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a)	Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
	in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
	Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.

Amounts in thousands
	Fair Value
Property Sector Exposure		$
Diversified		277,963
Healthcare		31,998
Industrial		50,447
Lodging/Resorts		40,875
Office		147,779
Residential		121,226
Retail		176,485
Self Storage		31,037
Short-Term Investments		15,820
Other Securities		10,496
Total Investments		904,126

See accompanying notes which are an integral part of the financial statements.

Global Real Estate Securities Fund 139

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Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

				Foreign
	Equity			Currency
Derivatives not accounted for as hedging instruments	Contracts			Contracts
Location: Statement of Assets and Liabilities - Assets
Unrealized appreciation on foreign currency exchange contracts	$	—		$	103
Variation margin on futures contracts*		111			—
Total	$	111		$	103
Location: Statement of Assets and Liabilities - Liabilities
Unrealized depreciation on foreign currency exchange contracts	$	—		$	28
				Foreign
	Equity			Currency
Derivatives not accounted for as hedging instruments	Contracts			Contracts
Location: Statement of Operations - Net realized gain (loss)
Futures contracts	$	2,428		$	—
Foreign currency exchange contracts		—			262
Total	$	2,428		$	262
Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Futures contracts	$	(321	)	$	—
Foreign currency exchange contracts		—			395
Total	$	(321	)	$	395

* Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

140 Global Real Estate Securities Fund

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Global Real Estate Securities Fund
Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Assets and Derivative Assets
									Gross	Net Amounts
							Amounts					of Assets
						Gross	Offset in the			Presented in
				Amounts of			Statement of			the Statement
				Recognized					Assets and	of Assets and
Description	Location: Statement of Assets and Liabilities - Assets					Assets	Liabilities					Liabilities
Securities on Loan*	Investments, at fair value			$		10,146		$	—		$	10,146
Foreign Currency Exchange Contracts	Unrealized appreciation on foreign currency exchange contracts					103			—			103
Futures Contracts	Variation margin on futures contracts					13			—			13
Total Financial and Derivative Assets						10,262			—			10,262
Financial and Derivative Assets not subject to a netting agreement						(13	)		—			(13	)
Total Financial and Derivative Assets subject to a netting agreement				$		10,249		$	—		$	10,249
Financial Assets, Derivative Assets, and Collateral Held by Counterparty
				Gross Amounts Not Offset in
				the Statement of Assets and
						Liabilities
		Net Amounts
			of Assets
		Presented in
		the Statement				Financial and
		of Assets and					Derivative		Collateral
Counterparty			Liabilities				Instruments		Received^			Net Amount
Bank of America		$	58		$	14		$	—		$	44
Barclays			4,191			—			4,191			—
Brown Brothers Harriman			1				1		—			—
Citigroup			798			—			798			—
Commonwealth Bank of Australia			44				2		—			42
Goldman Sachs			1,408			—			1,408			—
ING			55			—			55			—
JPMorgan Chase			434			—			434			—
Merrill Lynch			3,180			—			3,180			—
Morgan Stanley			80			—			80			—
Total		$	10,249		$	17		$	10,146		$	86

See accompanying notes which are an integral part of the financial statements.

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Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
December 31, 2017

Amounts in thousands
Offsetting of Financial Liabilities and Derivative Liabilities
				Gross			Net Amounts
				Amounts			of Liabilities
		Gross		Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Liabilities	Liabilities		Liabilities				Liabilities
Futures Contracts	Variation margin on futures contracts	$	18		$	—     $		18
Foreign Currency Exchange Contracts	Unrealized depreciation on foreign currency exchange contracts		28			—		28
Total Financial and Derivative Liabilities			46			—		46
Financial and Derivative Liabilities not subject to a netting agreement			(18	)		—		(18	)
Total Financial and Derivative Liabilities subject to a netting agreement		$	28		$	—     $		28

Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Liabilities
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty	Liabilities		Instruments			Pledged^		Net Amount
Bank of America	$	15		$	14	$	—	$	1
Brown Brothers Harriman		11			1		—		10
Commonwealth Bank of Australia		2			2		—		—
Total	$	28		$	17	$	—	$	11

*       Fair value of securities on loan as reported in the footnotes to the Statement of Assets and Liabilities.
^      Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

142 Global Real Estate Securities Fund

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Global Real Estate Securities Fund

Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	790,490
Investments, at fair value(*)(>)		904,126
Cash (restricted)(a)		1,670
Foreign currency holdings(^)		477
Unrealized appreciation on foreign currency exchange contracts		103
Receivables:
Dividends and interest		3,088
Dividends from affiliated funds		16
Investments sold		3,824
Fund shares sold		31
Foreign capital gains taxes recoverable		127
Variation margin on futures contracts		13
Total assets		913,475
Liabilities
Payables:
Investments purchased		2,452
Fund shares redeemed		228
Accrued fees to affiliates		644
Other accrued expenses		155
Variation margin on futures contracts		18
Unrealized depreciation on foreign currency exchange contracts		28
Payable upon return of securities loaned		10,496
Total liabilities		14,021
Net Assets	$	899,454

See accompanying notes which are an integral part of the financial statements.

Global Real Estate Securities Fund 143

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Statement of Assets and Liabilities, continued — December 31, 2017

Amounts in thousands
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	(17,487	)
Accumulated net realized gain (loss)		(13,450	)
Unrealized appreciation (depreciation) on:
Investments		113,636
Futures contracts		111
Foreign currency exchange contracts		75
Foreign currency-related transactions		11
Shares of beneficial interest		607
Additional paid-in capital		815,951
Net Assets	$	899,454
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	14.81
Net assets	$	899,453,751
Shares outstanding ($. 01 par value)		60,714,994
Amounts in thousands
(^)     Foreign currency holdings - cost	$	475
(*)      Securities on loan included in investments	$	10,146
(>)     Investments in affiliates, U. S. Cash Management Fund and U. S. Cash Collateral Fund	$	26,316
(a)     Cash Collateral for Futures	$	1,670
(#) Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

144 Global Real Estate Securities Fund

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Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Dividends	$	26,222
Dividends from affiliated funds		217
Securities lending income (net)		16
Securities lending income from affiliated funds (net)		68
Less foreign taxes withheld		(1,059	)
Total investment income		25,464
Expenses
Advisory fees		6,762
Administrative fees		423
Custodian fees		302
Transfer agent fees		37
Professional fees		92
Trustees’ fees		23
Printing fees		112
Miscellaneous		23
Total expenses		7,774
Net investment income (loss)		17,690
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		26,340
Investments in affiliated funds		(3	)
Futures contracts		2,428
Foreign currency exchange contracts		262
Foreign currency-related transactions		150
Net realized gain (loss)		29,177
Net change in unrealized appreciation (depreciation) on:
Investments		47,741
Investments in affiliated funds		(1	)
Futures contracts		(321	)
Foreign currency exchange contracts		395
Foreign currency-related transactions		73
Net change in unrealized appreciation (depreciation)		47,887
Net realized and unrealized gain (loss)		77,064
Net Increase (Decrease) in Net Assets from Operations	$	94,754

See accompanying notes which are an integral part of the financial statements.

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Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	17,690		$	16,312
Net realized gain (loss)		29,177			28,621
Net change in unrealized appreciation (depreciation)		47,887			(20,700	)
Net increase (decrease) in net assets from operations		94,754			24,233
Distributions
From net investment income		(31,188	)		(29,925	)
From net realized gain		(16,441	)		(24,898	)
From return of capital		—			(6,508	)
Net decrease in net assets from distributions		(47,629	)		(61,331	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		51,511			59,825
Total Net Increase (Decrease) in Net Assets		98,636			22,727
Net Assets
Beginning of period		800,818			778,091
End of period	$	899,454		$	800,818
Undistributed (overdistributed) net investment income included in net assets	$	(17,487	)	$	(12,213	)

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	2,324		$	33,928		2,178		$	31,955
Proceeds from reinvestment of distributions	3,266			47,629		4,337			61,331
Payments for shares redeemed	(2,058	)		(30,046	)	(2,221	)		(33,461	)
Total increase (decrease)	3,532		$	51,511		4,294		$	59,825

See accompanying notes which are an integral part of the financial statements.

146 Global Real Estate Securities Fund

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Global Real Estate Securities Fund

Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

			$
		$	Net	$		$	$		$
	Net Asset Value,		Investment	Net Realized		Total from	Distributions		Distributions		$
	Beginning of		Income	and Unrealized		Investment	from Net		from Net		Return of
		Period	(Loss)(a)(b)	Gain (Loss)		Operations	Investment Income		Realized Gain		Capital
December 31, 2017		14.00	. 29	1.34		1.63	(. 54	)	(. 28	)	—
December 31, 2016		14.71	. 31	. 13		. 44	(. 57	)	(. 46	)	(. 12	)
December 31, 2015		15.63	. 29	(. 25	)	. 04	(. 25	)	(. 71	)	—
December 31, 2014		14.68	. 28	1.89		2.17	(. 52	)	(. 70	)	—
December 31, 2013		15.37	. 31	. 24		. 55	(. 63	)	(. 61	)	—

See accompanying notes which are an integral part of the financial statements.

148 Global Real Estate Securities Fund

							%	%		%
			$		$		Ratio of Expenses	Ratio of Expenses	Ratio of Net
			Net Asset Value,	%	Net Assets,		to Average	to Average	Investment Income		%
	$		End of	Total	End of Period		Net Assets,	Net Assets,	to Average		Portfolio
Total Distributions			Period	Return(d)	(000	)	Gross	Net(b)	Net Assets(b)		Turnover Rate
	(. 82	)	14.81	11.80	899,454		. 92	. 92		2.09	84
	(1.15	)	14.00	3.02	800,818		. 94	. 94		2.06	91
	(. 96	)	14.71	. 25	778,091		. 93	. 93		1.86	64
	(1.22	)	15.63	14.75	777,376		. 95	. 95		1.76	64
	(1.24	)	14.68	3.70	658,413		. 93	. 93		1.97	72

See accompanying notes which are an integral part of the financial statements.

Global Real Estate Securities Fund 149

Russell Investment Funds
Global Real Estate Securities Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:

Advisory fees	$	601,560
Administration fees		37,598
Transfer agent fees		3,308
Trustee fees		1,730
	$	644,196

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

		Fair Value,								Change in
	Beginning of					Realized Gain				Unrealized	Fair Value, End					Income	Capital Gains
		Period		Purchases		Sales		(Loss)		Gain (Loss)	of Period			Distributions			Distributions
U. S. Cash Collateral Fund	$	931	$	101,209	$	91,644	$	—	$	—		$	10,496		$	68		$	—
U. S. Cash Management Fund		26,925		191,168		202,269		(3	)	(1	)		15,820			217			—
	$	27,856	$	292,377	$	293,913	$	(3	)  $	(1	)	$	26,316		$	285		$	—

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	831,143,738
Unrealized Appreciation	$	80,726,105
Unrealized Depreciation		(7,653,910	)
Net Unrealized Appreciation (Depreciation)	$	73,072,195
Undistributed Ordinary Income	$	9,619,392
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	196,320
Tax Composition of Distributions
Ordinary Income	$	31,187,678
Long-Term Capital Gains	$	16,441,237

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent book-tax differences.  Book-tax
differences are primarily due to foreign currency gains and losses, reclassifications of dividends, differences in treatment of income
from swaps, net operating losses, investments in partnerships, investments in passive foreign investment companies (PFICs), tax
straddle transaction, use of tax equalization and foreign capital gains taxes.  These adjustments have no impact on the net assets. At
December 31, 2017, the Statement of Assets and Liabilities have been adjusted by the following amounts (in thousands):

Undistributed net investment income	$	8,224
Accumulated net realized gain (loss)		(8,224	)
Additional paid-in capital		—

See accompanying notes which are an integral part of the financial statements.

150 Global Real Estate Securities Fund

Russell Investment Funds

Notes to Schedule of Investments — December 31, 2017

Footnotes:
(Æ) Non-income-producing security.
(ö) Real Estate Investment Trust (REIT).
(§) All or a portion of the shares of this security are pledged as collateral in connection with futures contracts purchased (sold), options
written, or swaps entered into by the Fund.
(~ ) Rate noted is yield-to-maturity from date of acquisition.
(ç) At amortized cost, which approximates market.
(Ê) Variable, adjustable or floating rate security. Rate shown reflects rate in effect at period end.
(Ï) Forward commitment.
(ƒ) Perpetual floating rate security. Rate shown reflects rate in effect at period end.
(µ) Bond is insured by a guarantor.
(æ) Pre-refunded: These bonds are collateralized by U.S. Treasury securities, which are held in escrow by a trustee and used to pay
principal and interest in the tax-exempt issue and to retire the bonds in full at the earliest refunding date.
(Ø) In default.
(ß) Illiquid security. See Note 7.
(x) The security is purchased with the cash collateral from the securities loaned.
(Ñ) All or a portion of the shares of this security are on loan.
(~) Rate fluctuates based on various factors such as changes in current rates and prepayments of the underlying assets, changes in the
CPI or other contractual arrangements.
(ì) All or a portion of the shares of this security are pledged as collateral in connection with options written contracts.
(¢) Date shown reflects next contractual call date.
(Þ) Restricted security. Security may have contractual restrictions on resale, may have been offered in a private placement transaction,
and may not be registered under the Securities Act of 1933. See Note 7.
(ÿ) Notional Amount in thousands.
(Š) Value was determined using significant unobservable inputs.
(Å) Illiquid and restricted security. See Note 7.
(@) Affiliate.
(Ÿ) Rate noted is dividend yield at period end.
(å) Currency balances were pledged in connection with futures contracts purchased (sold), options written, or swaps entered into by the
Fund. See Note 2.
(8) Unrounded units.
(v) Loan agreement still pending. Rate not available at period end.
(1) Weekly payment frequency.
(2) Quarterly payment frequency.
(3) Semi-annual payment frequency.
(4) Annual payment frequency.
(5) Payment at termination.

Abbreviations:
144A - Represents private placement security for qualified buyers according to rule 144A of the Securities Act of 1933.
ADR - American Depositary Receipt
ADS - American Depositary Share
BBSW - Bank Bill Swap Reference Rate
CIBOR - Copenhagen Interbank Offered Rate
CME - Chicago Mercantile Exchange
CMO - Collateralized Mortgage Obligation
CVO - Contingent Value Obligation
EMU - European Economic and Monetary Union
EURIBOR - Euro Interbank Offered Rate
FDIC - Federal Deposit Insurance Company
GDR - Global Depositary Receipt
GDS - Global Depositary Share
HIBOR – Hong Kong Interbank Offered Rate
LIBOR - London Interbank Offered Rate
NIBOR - Norwegian Interbank Offered Rate
PIK - Payment in Kind

Notes to Schedule of Investments 151

Russell Investment Funds

Notes to Schedule of Investments, continued — December 31, 2017

PRIBOR – Prague Interbank Offered Rate
REMIC - Real Estate Mortgage Investment Conduit
SIBOR – Singapore Interbank Offered Rate
STRIP - Separate Trading of Registered Interest and Principal of Securities
TBA - To Be Announced Security
UK - United Kingdom

152 Notes to Schedule of Investments

Russell Investment Funds

Notes to Schedule of Investments, continued — December 31, 2017

Foreign Currency Abbreviations:
ARS - Argentine peso	HUF - Hungarian forint	PKR - Pakistani rupee
AUD - Australian dollar	IDR - Indonesian rupiah	PLN - Polish zloty
BRL - Brazilian real	ILS - Israeli shekel	RUB - Russian ruble
CAD - Canadian dollar	INR - Indian rupee	SEK - Swedish krona
CHF - Swiss franc	ISK - Icelandic krona	SGD - Singapore dollar
CLP - Chilean peso	ITL - Italian lira	SKK - Slovakian koruna
CNY - Chinese renminbi yuan	JPY - Japanese yen	THB - Thai baht
COP - Colombian peso	KES - Kenyan schilling	TRY - Turkish lira
CRC - Costa Rican colon	KRW - South Korean won	TWD - Taiwanese dollar
CZK - Czech koruna	MXN - Mexican peso	USD - United States dollar
DKK - Danish krone	MYR – Malaysian ringgit	VEB - Venezuelan bolivar
EGP - Egyptian pound	NOK - Norwegian krone	VND - Vietnamese dong
EUR - Euro	NZD - New Zealand dollar	ZAR - South African rand
GBP - British pound sterling	PEN - Peruvian nuevo sol
HKD – Hong Kong dollar	PHP – Philippine peso

Notes to Schedule of Investments 153

Russell Investment Funds

Notes to Financial Highlights — December 31, 2017

(a) Average daily shares outstanding were used for this calculation.
(b) May reflect amounts waived and/or reimbursed by Russell Investment Management, LLC (“RIM”).
(c) Less than $.01 per share.
(d) The total return does not reflect any Insurance Company Separate Account or Policy Charges.
(e) Gross and Net Expense Ratios for the period ended December 31, 2016 include a reimbursement from State Street for the overbilling of custody expenses in
prior years. Without the reimbursement, the expense ratios would have been higher by the amount listed below.

	Impact of the fee reimbursement on
Fund	gross and net expense ratios
U. S. Strategic Equity Fund	0.01	%
U. S. Small Cap Equity Fund	0.01	%
International Developed Markets Fund	0.05	%

See accompanying notes which are an integral part of the financial statements.

154 Notes to Financial Highlights

Russell Investment Funds

Notes to Financial Statements — December 31, 2017

1. Organization
Russell Investment Funds (the “Investment Company” or “RIF”) is a series investment company with nine different investment
portfolios referred to as funds (each a “Fund” and collectively the “Funds”). These financial statements report on five of these
Funds. The Investment Company provides the investment base for one or more variable insurance products issued by one or more
insurance companies. These Funds are offered at net asset value (“NAV”) to qualified insurance company separate accounts offering
variable insurance products. The Investment Company is registered under the Investment Company Act of 1940, as amended
(“Investment Company Act”), as an open-end management investment company. It is organized and operated as a Massachusetts
business trust under an Amended and Restated Master Trust Agreement dated October 1, 2008, as amended (“Master Trust
Agreement”), and the provisions of Massachusetts law governing the operation of a Massachusetts business trust. The Investment
Company’s Master Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial
interest. Each of the Funds is diversified. Under the Investment Company Act, a diversified company is defined as a management
company which meets the following requirements: at least 75% of the value of its total assets is represented by cash and cash items
(including receivables), government securities, securities of other investment companies, and other securities for the purposes of
this calculation limited in respect of any one issuer to an amount not greater in value than five percent of the value of the total assets
of such management company and to not more than 10% of the outstanding voting securities of such issuer.
2. Significant Accounting Policies
The Funds’ financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”)
which require the use of management estimates and assumptions at the date of the financial statements. Actual results could differ
from those estimates. The Funds are considered investment companies under U.S. GAAP and follow the accounting and reporting
guidance applicable to investment companies. The following is a summary of the significant accounting policies consistently
followed by each Fund in the preparation of its financial statements.

In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain
current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments
to Regulation S-X require standardized, enhanced disclosure about derivatives in investment company financial statements, and
also change the rules governing the form and content of such financial statements. The amendments to Regulation S-X took effect
on August 1, 2017 and the financial statements have been modified accordingly, as applicable, and had no impact on the Funds'
net assets or results of operations.

Security Valuation
The Funds value portfolio securities according to Board-approved securities valuation procedures which include market and fair
value procedures. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell
Investments Fund Services, LLC ("RIFUS").

U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to
valuation methods and requires a separate disclosure of the fair value hierarchy for each major category of assets and liabilities,
that segregates fair value measurements into levels (Level 1, 2, and 3). The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy
are defined as follows:

• Level 1 — Quoted prices (unadjusted) in active markets or exchanges for identical assets and liabilities.

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable, which may include, but are not
limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets
or liabilities in markets that are not active, and inputs such as interest rates, yield curves, implied volatilities, credit spreads
or other market corroborated inputs.

• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent
observable inputs are not available, which may include assumptions made by RIFUS, acting at the discretion of the Board,
that are used in determining the fair value of investments.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for
example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and
other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or
unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised

Notes to Financial Statements 155

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that
is significant to the fair value measurement in its entirety.

The valuation techniques and significant inputs used in determining the fair market values of financial instruments categorized as
Level 1 and Level 2 of the fair value hierarchy are as follows:

Equity securities, including common and preferred stock, short securities and restricted securities that are traded on a national
securities exchange (or reported on the NASDAQ national market), are stated at the last reported sales price on the day of valuation
or official closing price, as applicable. To the extent these securities are actively traded, and valuation adjustments are not applied,
they are categorized as Level 1 of the fair value hierarchy. Preferred stock and other equities traded on inactive markets or valued
by reference to similar instruments are categorized as Level 2 of the fair value hierarchy. Certain foreign equity securities may
be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday
trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, exchange-traded funds, and
the movement of certain indexes of securities, based on the statistical analysis of historical relationships. Foreign equity securities
prices as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities including corporate, convertible, U.S. government agency, municipal bonds and notes, U.S. treasury
obligations, sovereign issues, bank loans, bank notes and non-U.S. bonds are normally valued by pricing service providers that use
broker dealer quotations or valuation estimates from their internal pricing models. The pricing service providers’ internal models
use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads and
default rates. Such fixed income securities that use pricing service internal models as described above are categorized as Level
2 of the fair value hierarchy. Such fixed income securities that use broker dealer quotations are categorized as Level 3 of the fair
value hierarchy.

Fixed income securities purchased on a delayed-delivery basis and marked-to-market daily until settlement at the forward settlement
date are categorized as Level 2 of the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These
securities are also normally valued by pricing service providers that use broker dealer quotations or valuation estimates from their
internal pricing models. The pricing models for these securities usually consider tranche-level attributes, including estimated cash
flows of each tranche, market-based yield spreads for each tranche, and current market data, as well as incorporate deal collateral
performance, as available. Mortgage and asset-backed securities that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy.

Investments in privately held investment funds will be valued based upon the NAV of such investments. The Funds have adopted
the authoritative guidance under U.S. GAAP for estimating the fair value of investments in funds that have calculated NAV per
share in accordance with the specialized accounting guidance for investment companies. Accordingly, the Funds estimate the
fair value of an investment in a fund using the NAV per share without further adjustment as a practical expedient, if the NAV per
share of the investment is determined in accordance with the specialized accounting guidance for investment companies as of the
reporting entity’s measurement date.

Short-term investments having a maturity of 60 days or less are generally valued at amortized cost, which approximates fair market
value. These investments are categorized as Level 2 of the fair value hierarchy.

Derivative instruments are instruments such as foreign currency contracts, futures contracts, options contracts, or swap agreements
that derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors.
Derivatives may be classified into two groups depending upon the way that they are traded: privately traded over-the-counter
(“OTC”) derivatives that do not go through an exchange or intermediary and exchange-traded derivatives that are traded through
specialized derivatives exchanges or other regulated exchanges. OTC derivatives are normally valued on the basis of broker dealer
quotations or pricing service providers. Depending on the product and the terms of the transaction, the value of the derivative
instrument can be estimated by a pricing service provider using a series of techniques, including simulation pricing models.
The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest
rates, yield curves, dividends and exchange rates. OTC derivatives that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy, with the exception of foreign currency spot contracts which

156 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

are categorized as Level 1 of the fair value hierarchy. OTC derivatives that use broker dealer quotations are categorized as level 3 of
the fair value hierarchy. Exchange-traded derivatives are valued based on the last reported sales price on the day of valuation and
are categorized as Level 1 of the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at
the daily settlement price determined by the respective exchange. For centrally cleared credit default swaps, the clearing facility
requires its members to provide actionable levels across complete term structures. These levels along with external third party
prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally
cleared interest rate swaps are valued using a pricing model that references the underlying rates including the overnight index
swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are
categorized as Level 2 of the fair value hierarchy.

Events or circumstances affecting the values of Fund securities that occur between the closing of the principal markets on which
they trade and the time the NAV of Fund shares is determined may be reflected in the calculation of NAV for each applicable
Fund when the Fund deems that the particular event or circumstance would materially affect such Fund’s NAV. Funds that invest
primarily in frequently traded exchange-listed securities will use fair value pricing in limited circumstances since reliable market
quotations will often be readily available. Funds that invest in foreign securities use fair value pricing daily as events may occur
between the close of foreign markets and the time of pricing. Although there are observable inputs assigned on a security level,
prices are derived from factors using proprietary models or matrix pricing. For this reason, fair value factors will cause movement
between Levels 1 and 2. Significant events that could trigger fair value pricing of one or more securities include: a company
development such as a material business development; a natural disaster or emergency situation; or an armed conflict.

The NAV of a Fund’s portfolio that includes foreign securities may change on days when shareholders will not be able to purchase
or redeem Fund shares, since foreign securities can trade on non-business days.

For movements between the levels within the fair value hierarchy, the Funds have adopted a policy of recognizing the transfers as
of year-end.

The U.S. Strategic Equity, U.S. Small Cap Equity, International Developed Markets and Global Real Estate Securities Funds had
no transfers between Levels 1, 2, and 3 for the period ended December 31, 2017.

The Strategic Bond Fund had transfers from Level 2 into Level 3 representing financial instruments for which approved vendor
sources became unavailable or inputs became unobservable. The amount transferred was $81,871.

Level 3 Fair Value Investments
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of
the fair value hierarchy are as follows:

Securities and other assets for which market quotes are not readily available, or are not reliable, are valued at fair value as
determined in good faith by RIFUS and are categorized as Level 3 of the fair value hierarchy. Market quotes are considered not
readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or
broker quotes). When RIFUS applies fair valuation methods that use significant unobservable inputs to determine a Fund’s NAV,
securities will not be priced on the basis of quotes from the primary market in which they are traded, but instead may be priced by
another method that RIFUS believes accurately reflects fair value and will be categorized as Level 3 of the fair value hierarchy. Fair
value pricing may require subjective determinations about the value of a security. While the securities valuation procedures are
intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, the process cannot
guarantee that fair values determined by RIFUS would accurately reflect the price that a Fund could obtain for a security if it were
to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ
from the value that would be realized if the security was sold.

RIFUS employs third party pricing vendors to provide fair value measurements. RIFUS oversees third-party pricing service
providers in order to support the valuation process throughout the year.

The significant unobservable input used in fair value measurement of certain of the Funds’ preferred equity securities is the
redemption value calculated on a fully-diluted basis if converted to common stock. Significant increases or decreases in the
redemption value would have a direct and proportional impact to fair value.

The significant unobservable input used in the fair value measurement of certain Funds’ debt securities is the yield to worst ratio.
Significant increases (decreases) in the yield to worst ratio would result in a lower (higher) fair value measurement.

Notes to Financial Statements 157

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

These significant unobservable inputs are further disclosed in the Presentation of Portfolio Holdings for each respective Fund as
applicable.

If third party evaluated vendor pricing is neither available nor deemed to be indicative of fair value, RIFUS may elect to obtain
indicative market quotations (“broker quotes”) directly from the broker or passed through from a third party vendor. In the event
that the source of fair value is from a single source broker quote, these securities are classified as Level 3 per the fair value
hierarchy. Broker quotes are typically received from established market participants. Although independently received on a daily
basis, RIFUS does not have the transparency to view the underlying inputs which support the broker quotes. Significant changes
in the broker quote would have direct and proportional changes in the fair value of the security. There is a third-party pricing
exception to the quantitative disclosure requirement when prices are not determined by the reporting entity. RIFUS is exercising
this exception and has made a reasonable attempt to obtain quantitative information from the third party pricing vendors regarding
the unobservable inputs used.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances
for reported fair values that present changes attributable to total realized and unrealized gains or losses, purchases and sales, and
transfers in/out of the Level 3 category during the period. Additionally, U.S. GAAP requires quantitative information regarding the
significant unobservable inputs used in the determination of fair value of assets categorized as Level 3 in the fair value hierarchy. In
accordance with the requirements of U.S. GAAP, a fair value hierarchy, a Level 3 reconciliation and an additional disclosure about
fair value measurements, if any, has been included in the Presentation of Portfolio Holdings for each respective Fund.

Investment Transactions
Investment transactions are reflected as of the trade date for financial reporting purposes. This may cause the NAV stated in the
financial statements to be different from the NAV at which shareholders may transact. Realized gains and losses from securities
transactions, if applicable, are recorded on the basis of specific identified cost incurred within a particular Fund.

Investment Income
Dividend income is recorded net of applicable withholding taxes on the ex-dividend date, except that certain dividends from
foreign securities are recorded as soon as the Funds are informed of the dividend, subsequent to the ex-dividend date. To the
extent the dividend represents a return of capital or capital gain for tax purposes, reclassifications are made which may be based
on management's estimates. Interest income is recorded daily on the accrual basis. The Strategic Bond Fund classifies gains and
losses realized on prepayments received on mortgage-backed securities as an adjustment to interest income. All premiums and
discounts, including original issue discounts, are amortized/ accreted using the effective interest method. Debt obligation securities
may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off
interest receivable when the collection of all or a portion of interest has become doubtful.

Federal Income Taxes
Since the Investment Company is a Massachusetts business trust, each Fund is a separate corporate taxpayer and determines its
net investment income and capital gains (or losses) and the amounts to be distributed to each Fund’s shareholders without regard
to the income and capital gains (or losses) of the other Funds.

For each year, each Fund intends to qualify or continue to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended (the “Code”) and intends to distribute all of its taxable income and capital gains.
Therefore, no federal income tax provision is required for the Funds.

The Funds comply with the authoritative guidance for uncertainty in income taxes which requires management to determine whether
a tax position of the Funds is more likely than not to be sustained upon examination, including resolution of any related appeals or
litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the
tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being
realized upon ultimate settlement with the relevant taxing authority. Management determined that no accruals need to be made in
the financial statements due to uncertain tax positions. Management continually reviews and adjusts the Funds’ liability for income
taxes based on analyses of tax laws and regulations, as well as their interpretations, and other relevant factors.

Each Fund files a U.S. tax return. At December 31, 2017, the Funds had recorded no liabilities for net unrecognized tax benefits
relating to uncertain income tax positions they have taken or expect to take in future tax returns. While the statute of limitations
remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ended December 31, 2014 through December 31,

158 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

2016, no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

Dividends and Distributions to Shareholders
For all Funds, income, capital gain distributions and return of capital, if any, are recorded on the ex-dividend date. Income
distributions are generally declared and paid according to the following schedule:

Declared	Payable	Funds
Quarterly	April, July, October and mid-December	U. S. Strategic Equity, U. S. Small Cap Equity, Strategic Bond and
		Global Real Estate Securities Funds
Annually	Mid-December	International Developed Markets Fund

The Funds intend to distribute substantially all of the distributions they receive from real estate investment trust ("REIT")
investments, less expenses, as well as income from other investments. Such distributions may be comprised of income, return of
capital, and capital gains. The Funds may also realize capital gains on the sale of its REIT shares and other investments.

Capital gain distributions are generally declared and paid annually. An additional distribution may be paid by the Funds to avoid
imposition of federal income and excise tax on any remaining undistributed capital gains and net investment income.

The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax
regulations which may differ from U.S. GAAP. As a result, net investment income and net realized gain (or loss) on investments
and foreign currency-related transactions for a reporting period may differ significantly from distributions during such period. The
differences between tax regulations and U.S. GAAP primarily relate to investments in options, futures, forward contracts, swap
contracts, passive foreign investment companies, foreign-denominated investments, mortgage-backed securities, certain securities
sold at a loss, wash sale deferrals and capital loss carryforwards. Accordingly, the Funds may periodically make reclassifications
among certain of their capital accounts without impacting their NAVs.

Expenses
The Funds pay their own expenses other than those expressly assumed by Russell Investment Management, LLC ("RIM"), the
Funds’ adviser, or RIFUS. Most expenses can be directly attributed to the individual Funds. Expenses which cannot be directly
attributed to a specific Fund are allocated among all Funds principally based on their relative net assets.

Foreign Currency Translations
The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts and transactions of the Funds are
translated into U.S. dollars on the following basis:

(a) Fair value of investment securities, other assets and liabilities at the closing rate of exchange on the valuation date.

(b) Purchases and sales of investment securities and income at the closing rate of exchange prevailing on the respective trade
dates of such transactions.

Net realized gains or losses from foreign currency-related transactions arise from: sales and maturities of short-term securities;
sales of foreign currencies; currency gains or losses realized between the trade and settlement dates on securities transactions; the
difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S.
dollar equivalent of the amounts actually received or paid. Net unrealized gains or losses from foreign currency-related transactions
arise from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in the exchange
rates.

The Funds do not isolate that portion of the results of operations of the Funds that arises as a result of changes in exchange rates
from that portion that arises from changes in market prices of investments during the year. Such fluctuations are included with the
net realized and unrealized gain or loss from investments. However, for federal income tax purposes, the Funds do isolate the effects
of changes in foreign exchange rates from the fluctuations arising from changes in market prices for realized gain (or loss) on debt
obligations.

Notes to Financial Statements 159

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

Capital Gains Taxes
The International Developed Markets, Strategic Bond and Global Real Estate Securities Funds may be subject to capital gains
taxes and repatriation taxes imposed by certain countries in which they invest. The International Developed Markets, Strategic
Bond Fund and Global Real Estate Securities Funds may record a deferred capital gains tax liability with respect to the unrealized
appreciation on foreign securities for potential capital gains and repatriation taxes at December 31, 2017. The accrual for capital
gains and repatriation taxes is included in net unrealized appreciation (depreciation) on investments in the Statements of Assets
and Liabilities. The amounts related to capital gains and repatriation taxes are included in net realized gain (loss) on investments
in the Statements of Operations. The amounts related to capital gains and repatriation taxes are included in net realized gain (loss)
on investments in the Statements of Operations for the following Funds:

	Deferred Capital
		Gains Tax		Capital Gains
		Liability		Taxes
International Developed Markets Fund	$	—	$	3,956
Strategic Bond Fund		2,516		—

Derivatives
The Funds may invest in derivatives. Derivatives are instruments or agreements whose value is derived from an underlying security
or index. They include options, futures, swaps and forwards. These instruments offer unique characteristics and risks that facilitate
the Funds' investment strategies.

The Funds typically use derivatives in three ways: exposing cash to markets, hedging and return enhancement. In addition, certain
Funds may enter into foreign exchange contracts for trade settlement purposes. The Funds may pursue their strategy of being fully
invested by exposing cash to the performance of appropriate markets by purchasing securities and/or derivatives. This is intended
to cause the Funds to perform as though cash were actually invested in those markets.

Hedging may be used by certain Funds to limit or control risks, such as adverse movements in exchange rates and interest rates.
Return enhancement can be accomplished through the use of derivatives in a Fund, including using derivatives as a substitute for
holding physical securities, and using them to express various macro views (e.g., interest rate movements, currency movements,
and macro credit strategies). By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio
characteristics that assist them in meeting their investment objectives. Depending on how the derivatives are structured and
utilized, the risks associated with them may vary widely. These risks include, but are not limited to, market risk, liquidity risk,
leveraging risk, counterparty risk, basis risk, reinvestment risk, political risk, prepayment risk, extension risk, valuation risk and
credit risk.

Futures, certain options and cleared swaps are traded or cleared on an exchange or central exchange clearing house. Exchange-
traded or exchange-cleared transactions generally present less counterparty risk to a Fund. The exchange’s clearing house stands
between the Fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the clearing
house and the clearing member. Cleared swap contracts are subject to clearing house rules, including initial and variation margin
requirement, daily settlement of obligations and the clearing house guarantee of payments to the broker. There is, however, still
counterparty risk due to the insolvency of the broker with respect to any margin held in the brokers’ customer accounts. While
clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a
shortfall in the amount of margin held by the broker for its clients. Collateral and margin requirements for exchange-traded or
exchange-cleared derivatives are established through regulation, as well as set by the broker or applicable clearing house. Margin
for exchange-traded and exchange-cleared transactions are detailed in the Statements of Assets and Liabilities as cash held at the
broker for futures contracts and cash held at the broker for swap contracts, respectively. Securities pledged by a Fund for exchange-
traded and exchange-cleared transactions are noted as collateral or margin requirements in the Schedule of Investments. Typically,
the Funds and counterparties are not permitted to sell, repledge, rehypothecate or otherwise use collateral pledged by the other
party unless explicitly permitted by each respective governing agreement.

In addition, proposed regulatory changes by the Securities and Exchange Commission ("SEC") relating to a mutual fund's use of
derivatives could potentially limit or impact the Funds' ability to invest in derivatives and adversely affect the value or performance
of the Funds or their derivative investments.

The effects of derivative instruments, categorized by risk exposure, on the Statements of Assets and Liabilities and the Statements of
Operations, for the period ended December 31, 2017, if applicable, are disclosed in the Fair Value of Derivative Instruments table
following each applicable Fund’s Schedule of Investments.

160 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

Foreign Currency Exchange Contracts
Certain Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts (“FX
contracts”). From time to time, certain Funds may enter into FX contracts to hedge certain foreign currency-denominated assets.
FX contracts are recorded at fair value. Certain risks may arise upon entering into these FX contracts from the potential inability
of counterparties to meet the terms of their FX contracts and are generally limited to the amount of unrealized gain on the FX
contracts, if any, that are disclosed in the Statements of Assets and Liabilities.

For the period ended December 31, 2017, the following Funds entered into foreign currency exchange contracts primarily for the
strategies listed below:

Funds	Strategies
International Developed Markets Fund	Return enhancement, hedging and exposing cash to markets
Strategic Bond Fund	Return enhancement and hedging
Global Real Estate Securities Fund	Exposing cash to markets and trade settlement

The Funds’ foreign currency contract notional dollar values outstanding fluctuate throughout the fiscal year as required to meet
strategic requirements. The following tables illustrate the quarterly volume of foreign currency contracts. For the purpose of this
disclosure, volume is measured by the amounts bought and sold in USD.

					Outstanding Contract Amounts Sold
Quarter Ended	March 31, 2017		June 30, 2017				September 30, 2017	December 31, 2017
International Developed Markets Fund	$	146,023,685		$	99,879,057	$	137,597,644	$	224,739,400
Strategic Bond Fund		218,330,428			237,417,308		254,898,594		219,343,155
Global Real Estate Securities Fund		25,030,348			13,056,783		18,033,177		12,469,562
					Outstanding Contract Amounts Bought
Quarter Ended	March 31, 2017		June 30, 2017				September 30, 2017	December 31, 2017
International Developed Markets Fund	$	146,186,436		$	99,852,328	$	136,592,041	$	225,435,407
Strategic Bond Fund		219,014,319			237,813,389		254,639,578		219,720,412
Global Real Estate Securities Fund		25,197,157			13,032,856		17,826,768		12,523,159

Options
Certain Funds may purchase and sell (write) call and put options on securities and securities indices. Such options are traded on
a national securities exchange or in an OTC market. The Funds may also purchase and sell (write) call and put options on foreign
currencies.

When a Fund writes a covered call or a put option, an amount equal to the premium received by the Fund is included in the Fund’s
Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-
to-market to reflect the current fair value of the option written. The Fund receives a premium on the sale of a call option but gives
up the opportunity to profit from any increase in the value of the underlying instrument above the exercise price of the option, and
when the Fund writes a put option it is exposed to a decline in the price of the underlying instrument.

When a Fund sells an uncovered call option, it does not simultaneously have a long position in the underlying security. When a
Fund sells an uncovered put option, it does not simultaneously have a short position in the underlying security. Uncovered options
are riskier than covered options because there is no underlying security held by the Fund that can act as a partial hedge.

Whether an option which the Fund has written expires on its stipulated expiration date or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss, if the cost of a closing purchase transaction exceeds the premium received when the
option was sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is
extinguished. If a call option which the Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the
underlying security, and the proceeds from such sale are increased by the premium originally received. When a put option which
a Fund has written is exercised, the amount of the premium originally received will reduce the cost of the security which a Fund
purchases upon exercise of the option.

The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Funds’ exposure to
market risk. The risks may be caused by an imperfect correlation between movements in the price of the instrument and the price
of the underlying securities and interest rates.

Notes to Financial Statements 161

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

Certain Funds may enter into a swaption (an option on a swap). In a swaption, in exchange for an option, the buyer gains the right
but not the obligation to enter into a specified swap agreement with the issuer on a specified future date. The writer of the contract
receives the premium and bears the risk of unfavorable changes in the preset rate on the underlying swap.

For the period ended December 31, 2017, the Strategic Bond Fund purchased or sold options primarily for return enhancement
and hedging.

The Strategic Bond Fund’s options contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic
requirements. The following table illustrates the quarterly volume of options contracts measured by notional in USD.

			Notional of Options Contracts Outstanding
Funds	March 31, 2017		June 30, 2017				September 30, 2017	December 31, 2017
Strategic Bond Fund	$	74,724,000		$	69,632,938	$	92,421,063	$	83,138,438

Futures Contracts
The Funds may invest in futures contracts (i.e., interest rate, foreign currency and index futures contracts). The face or contract
value of these instruments reflect the extent of the Funds’ exposure to off balance sheet risk. The primary risks associated with the
use of futures contracts are an imperfect correlation between the change in fair value of the securities held by the Funds and the
prices of futures contracts, and the possibility of an illiquid market. Upon entering into a futures contract, the Funds are required to
deposit with a broker an amount, termed the initial margin, which typically represents 5% to 10% of the purchase price indicated
in the futures contract. Payments to and from the broker, known as variation margin, are typically required to be made on a daily
basis as the price of the futures contract fluctuates. Changes in initial settlement value are accounted for as unrealized appreciation
(depreciation) until the contracts are terminated, at which time realized gains and losses are recognized.

For the period ended December 31, 2017, the following Funds entered into futures contracts primarily for the strategies listed
below:

Funds	Strategies
U. S. Strategic Equity Fund	Exposing cash to markets
U. S. Small Cap Equity Fund	Exposing cash to markets
International Developed Markets Fund	Return enhancement, hedging and exposing cash to markets
Strategic Bond Fund	Return enhancement, hedging and exposing cash to markets
Global Real Estate Securities Fund	Exposing cash to markets

The Funds’ futures contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the quarterly volume of futures contracts measured by notional in USD.

			Notional of Futures Contracts Outstanding
Funds	March 31, 2017					June 30, 2017		September 30, 2017	December 31, 2017
U. S. Strategic Equity Fund	$	16,640,480		$	3,268,215		$	14,719,185	$	18,464,400
U. S. Small Cap Equity Fund		6,991,220			2,545,740			447,870		8,297,100
International Developed Markets Fund		86,596,653			80,680,411			94,099,980		102,474,442
Strategic Bond Fund		386,456,924			623,467,704			600,878,343		659,401,468
Global Real Estate Securities Fund		17,933,563			18,574,517			21,408,328		18,395,434
Swap Agreements

Certain Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether they are
hedging their assets or their liabilities, and will usually enter into swaps on a net basis (i.e., the two payment streams are netted
out, with the Funds receiving or paying only the net amount of the two payments). When a Fund engages in a swap, it exchanges
its obligations to pay or rights to receive payments for the obligations to pay or rights to receive payments of another party (i.e., an
exchange of floating rate payments for fixed rate payments).

Certain Funds may enter into several different types of swap agreements including credit default, interest rate, total return (equity
and/or index) and currency swaps. Credit default swaps are a counterparty agreement which allows the transfer of third party
credit risk (the possibility that an issuer will default on its obligation by failing to pay principal or interest in a timely manner)
from one party to another. The lender faces the credit risk from a third party and the counterparty in the swap agrees to insure this
risk in exchange for regular periodic payments. Interest rate swaps are a counterparty agreement, can be customized to meet each
party’s needs, and involve the exchange of a fixed or variable payment per period for a payment that is not fixed. Equity swaps are
a counterparty agreement where two parties exchange two sets of cash flows on predetermined dates for an agreed upon amount of

162 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

time. The cash flows will typically be an equity index value swapped with a floating rate such as LIBOR plus or minus a pre-defined
spread. Total return swap agreements are a counterparty agreement intended to expose cash to markets or to effect investment
transactions consistent with those Funds’ investment objectives and strategies. Currency swaps are a counterparty agreement where
two parties exchange specified amounts of different currencies which are followed by each paying the other a series of interest
payments that are based on the principal cash flow. At maturity the principal amounts are returned.

The Funds generally expect to enter into these transactions primarily to preserve a return or spread on a particular investment or
portion of their portfolios or to protect against any increase in the price of securities they anticipate purchasing at a later date, or for
return enhancement. Under most swap agreements entered into by a Fund, the parties' obligations are determined on a "net basis".
The net amount of the excess, if any, of the Funds’ obligations over their entitlements with respect to each swap will be accrued on a
daily basis and an amount of cash or liquid assets having an aggregate NAV at least equal to the accrued excess will be segregated.
To the extent that the Funds enter into swaps on other than a net basis, the amount maintained in a segregated account will be the
full amount of the Funds’ obligations, if any, with respect to such swaps, accrued on a daily basis. If there is a default by the other
party to such a transaction, the Funds will have contractual remedies pursuant to the agreement related to the transaction.

A Fund may not receive the expected amount under a swap agreement if the other party to the agreement defaults or becomes
bankrupt.

Credit Default Swaps
The Strategic Bond Fund may enter into credit default swaps. A credit default swap can refer to corporate issues, government
issues, asset-backed securities or an index of assets, each known as the reference entity or underlying asset. The Fund may act as
either the buyer or the seller of a credit default swap involving one party making a stream of payments to another party in exchange
for the right to receive a specified return in the event of a default or other credit event. Depending upon the terms of the contract,
the credit default swap may be closed via physical settlement. However, due to the possible or potential instability in the market,
there is a risk that the Fund may be unable to deliver the underlying debt security to the other party to the agreement. Additionally,
the Fund may not receive the expected amount under the swap agreement if the other party to the agreement defaults or becomes
bankrupt. In an unhedged credit default swap, the Fund enters into a credit default swap without owning the underlying asset or
debt issued by the reference entity. Credit default swaps allow the Fund to acquire or reduce credit exposure to a particular issuer,
asset or basket of instruments.

As the seller of protection in a credit default swap, the Fund would be required to pay the par or other agreed-upon value (or
otherwise perform according to the swap contract) of a reference debt obligation to the counterparty in the event of a default (or
other specified credit event) and the counterparty would be required to surrender the reference debt obligation. In return, the Fund
would receive from the counterparty a periodic stream of payments over the term of the contract provided that no credit event has
occurred. If no credit event occurs, the Fund would keep the stream of payments and would have no payment obligations. As a seller
of protection, the Fund would effectively add leverage to its portfolio because in addition to its total net assets, that Fund would be
subject to investment exposure on the notional amount of the swap.

The may also purchase protection via credit default swap contracts in order to offset the risk of default of debt securities held in
their portfolios or to take a short position in a debt security, in which case the Fund would function as the counterparty referenced
in the preceding paragraph.

If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of
the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer
of protection’s right to choose the deliverable obligation with the lowest value following a credit event). The Fund may use credit
default swaps to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Fund owns or has
exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood (as measured by the
credit default swap’s spread) of a particular issuer’s default.

Deliverable obligations for credit default swaps on asset-backed securities in most instances are limited to the specific referenced
obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown
or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These
reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap
agreement generally will be adjusted by corresponding amounts. The Strategic Bond Fund may use credit default swaps on asset-
backed securities to provide a measure of protection against defaults (or other defined credit events) of the referenced obligation

Notes to Financial Statements 163

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

or to take an active long or short position with respect to the likelihood of a particular referenced obligation’s default (or another
defined credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for
the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of
the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be
representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a
poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the
indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging
markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized
terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and
if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes
periodically, usually every six months, and, for most indices, each name has an equal weight in the index. Traders may use credit
default swaps on indices to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on
corporate issues as of period-end are disclosed in the Schedules of Investments and generally serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default (or other defined credit event) for the credit
derivative. The implied credit spread of a particular referenced entity reflects the cost of entering into a credit default swap and
may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-
backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of
the payment/performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional
amount of the swap, generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk
of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future
payments (undiscounted) that the Fund as a seller of protection could be required to make under a credit default swap agreement
equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December
31, 2017, for which a Fund is the seller of protection are disclosed in the Schedules of Investments. These potential amounts would
be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the
agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund
for the same referenced entity or entities.

Credit default swaps could result in losses if the Fund does not correctly evaluate the creditworthiness of the company or companies
on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Fund had invested
in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject to
illiquidity and counterparty risk. The Fund will generally incur a greater degree of risk when it sells a credit default swap than when
it purchases a credit default swap. As a buyer of a credit default swap, the Fund may lose its investment and recover nothing should
a credit event fail to occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event were
to occur, the value of any deliverable obligation received by the Fund, coupled with the upfront or periodic payments previously
received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.

If the creditworthiness of the Fund’s swap counterparty declines, the risk that the counterparty may not perform could increase,
potentially resulting in a loss to the Fund. To limit the counterparty risk involved in swap agreements, the Fund will only enter
into swap agreements with counterparties that meet certain standards of creditworthiness. Although there can be no assurance
that the Fund will be able to do so, the Fund may be able to reduce or eliminate its exposure under a swap agreement either by
assignment or other disposition, or by entering into an offsetting swap agreement with the same party or another creditworthy party.
The Fund may have limited ability to eliminate its exposure under a credit default swap if the credit quality of the reference entity
or underlying asset has declined.

For the period ended December 31, 2017, the Strategic Bond Fund entered into credit default swaps primarily for return
enhancement, hedging and exposing cash to markets.

The Strategic Bond Fund’s credit default swap contract notional amounts outstanding fluctuate throughout the fiscal year as required
to meet strategic requirements. The following table illustrates the quarterly volume of credit default swap contracts. For the purpose
of this disclosure, volume is measured by notional amounts outstanding in USD at each quarter end.

164 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

			Credit Default Swap Notional Amounts Outstanding
Quarter Ended	March 31, 2017					June 30, 2017		September 30, 2017	December 31, 2017
Strategic Bond Fund	$	1,955,100		$	5,800,000		$	6,180,000	$	4,710,000

Interest Rate Swaps
The use of interest rate swaps is a highly specialized activity which involves investment techniques and risks different from those
associated with ordinary portfolio securities transactions. If RIM or a money manager using this technique is incorrect in its forecast
of fair values, interest rates and other applicable factors, the investment performance of a Fund might diminish compared to what
it would have been if this investment technique were not used.

Interest rate swaps do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss
with respect to interest rate swaps is limited to the net amount of interest payments that a Fund is contractually obligated to make.
Interest rate swaps are traded on exchanges and are subject to central clearing. If the clearing house or futures commission merchant
defaults, a Funds' risk of loss consists of the net amount of interest payments that a Fund is contractually entitled to receive. The
counterparty risk for cleared derivatives is generally lower than for uncleared derivatives. However, clearing may subject a Fund to
increased costs or margin requirements.

For the period ended December 31, 2017, the Strategic Bond Fund entered into interest rate swaps primarily for return enhancement,
hedging and exposing cash to markets.

The Strategic Bond Fund’s interest rate swap contract notional amounts outstanding fluctuate throughout the fiscal year as required
to meet strategic requirements. The following table illustrates the quarterly volume of interest rate swap contracts. For the purpose
of this disclosure, volume is measured by the notional amounts outstanding in USD at each quarter end.

			Interest Rate Swap Notional Amounts Outstanding
Quarter Ended	March 31, 2017					June 30, 2017		September 30, 2017	December 31, 2017
Strategic Bond Fund	$	26,329,868		$	24,182,304		$	28,446,687	$	14,656,981

Total Return Swaps
Certain Funds may enter into total return swap agreements to expose cash to markets or to effect investment transactions. Total
return swap agreements are two party contracts entered into primarily by institutional investors for periods ranging from a few weeks
to more than one year. In a standard total return swap transaction, the two parties agree to exchange the returns (or differentials
in rates of return) earned or realized on particular investments or instruments. The returns to be exchanged between the parties
are calculated with respect to a “notional amount” (i.e., a specified dollar amount that is hypothetically invested in a “basket” of
securities representing a particular index).

For the period ended December 31, 2017, the Strategic Bond Fund entered into total return swaps primarily for exposing cash to
markets.

The Strategic Bond Fund’s total return swap contract notional amounts outstanding fluctuate throughout the fiscal year as required
to meet strategic requirements. The following table illustrates the quarterly volume of total return swap contracts. For the purpose
of this disclosure, volume is measured by notional amounts outstanding in USD at each quarter end.

			Total Return Swap Notional Amounts Outstanding
Quarter Ended	March 31, 2017		June 30, 2017	September 30, 2017	December 31, 2017
Strategic Bond Fund	$	48,659,119	$                    —	$                —	$              —

Currency Swaps
Certain Funds may enter into currency swap agreements to enhance returns or for hedging purposes. Currency swap agreements are
agreements where two parties exchange specified amounts of different currencies which are followed by paying the other a series of
interest payments that are based on the principal cash flow. At maturity, the principal amounts are exchanged.

For the period ended December 31, 2017, the Funds did not enter into currency swap agreements.

Master Agreements
Certain Funds are parties to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”)
with counterparties that govern transactions in OTC derivative and foreign exchange contracts entered into by the Funds and
those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations, agreements,

Notes to Financial Statements 165

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

collateral and events of default or termination. Events of termination and default include conditions that may entitle either party
to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement.
Any election to terminate early could be material to the financial statements. Since different types of forward and OTC financial
derivative transactions have different mechanics and are sometimes traded out of different legal entities of a particular counterparty
organization, each type of transaction may be covered by a different ISDA Master Agreement, resulting in the need for multiple
agreements with a single counterparty. As the ISDA Master Agreements are specific to unique operations of different asset types,
they allow a Fund to net its total exposure to a counterparty in the event of a default with respect to all the transactions governed
under a single agreement with a counterparty.

Master Repurchase Agreements (“Master Repo Agreements”) govern transactions between a Fund and select counterparties.
The Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and
maintenance of collateral for repurchase and reverse repurchase agreements.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors
surrounding the settlement of certain forward settling transactions, such as delayed delivery by and between a Fund and select
counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment
and transfer, events of default, termination, and maintenance of collateral.

Disclosure about Offsetting Assets and Liabilities
Balance sheet disclosure is based on various netting agreements between brokers and counterparties, such as ISDA Master
Agreements, Master Repo Agreements and Master Forward Agreements. Certain Funds utilize multiple counterparties. The
quantitative disclosure begins with disaggregation of counterparties by legal entity and the roll up of the data to reflect a single
counterparty in the table within the Funds’ financial statements. Net exposure represents the net receivable (payable) that would be
due from/to the counterparty in the event of default. Exposure from OTC derivatives can only be netted across transactions governed
under the same Master Agreement with the same legal entity.

Loan Agreements
The Strategic Bond Fund may invest in direct debt instruments, which are interests in amounts owed by corporate, governmental,
or other borrowers to lenders or lending syndicates. The Fund’s investments in loans may be in the form of participations in loans
or assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution
(the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement.
When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it
is entitled only from the agent selling the loan agreement and only upon receipt by the agent of payments from the borrower. The
Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund
may be subject to the credit risk of both the borrower and the agent that is selling the loan agreement. When the Fund purchases
assignments from agents it acquires direct rights against the borrower on the loan. As of December 31, 2017, the Strategic Bond
Fund had no unfunded loan commitments.

Local Access Products
Certain Funds may invest in local access products, also known as certificates of participation, participation notes or participation
interest notes. Local access products are issued by banks or broker-dealers and are designed to replicate the performance of foreign
companies or foreign securities markets and can be used by the Fund as an alternative means to access the securities market of a
frontier emerging market country. The performance results of local access products will not replicate exactly the performance of
the foreign companies or foreign securities markets that they seek to replicate due to transaction and other expenses. Investments
in local access products involve certain risks in addition to those associated with a direct investment in the underlying foreign
companies or foreign securities markets whose return they seek to replicate. There can be no assurance that there will be a trading
market or that the trading price of local access products will equal the underlying value of the foreign company or foreign securities
market that it seeks to replicate. The Funds rely on the creditworthiness of the counterparty issuing the local access products and
have no rights against the issuer of the underlying security. The Funds minimize this risk by entering into agreements only with
counterparties that RIM deems creditworthy. Due to liquidity and transfer restrictions, the secondary markets on which the local
access products are traded may be less liquid than the markets for other securities, or may be completely illiquid.

166 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

Emerging Markets Securities
Certain Funds may invest in emerging markets securities. Investing in emerging markets securities can pose some risks different
from, and greater than, risks of investing in U.S. or developed markets securities. These risks include: a risk of loss due to
exposure to economic structures that are generally less diverse and mature, and to political systems which may have less stability,
than those of more developed countries; smaller market capitalization of securities markets, which may suffer periods of relative
illiquidity; significant price volatility; restrictions on foreign investment; and possible difficulties in the repatriation of investment
income and capital. In addition, foreign investors may be required to register the proceeds of sales and future economic or political
crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization, or creation of
government monopolies. The currencies of emerging market countries may experience significant declines against the U.S. dollar,
and devaluation may occur subsequent to investments in these currencies by the Funds. Emerging market securities may be
subject to currency transfer restrictions and may experience delays and disruptions in settlement procedures. Inflation and rapid
fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of
certain emerging market countries.

Emerging Markets Debt
The Strategic Bond Fund may invest in emerging markets debt. The Fund's emerging markets debt securities may include obligations
of governments and corporations. As with any fixed income securities, emerging markets debt securities are subject to the risk of
being downgraded in credit rating due to the risk of default. In the event of a default on any investments in foreign debt obligations,
it may be more difficult for the Fund to obtain or to enforce a judgment against the issuers of such securities. With respect to debt
issued by emerging market governments, such issuers may be unwilling to pay interest and repay principal when due, either due
to an inability to pay or submission to political pressure not to pay, and as a result may default, declare temporary suspensions of
interest payments or require that the conditions for payment be renegotiated.

Repurchase Agreements
The Strategic Bond Fund may enter into repurchase agreements. A repurchase agreement is an agreement under which a Fund
acquires a fixed income security from a commercial bank, broker or dealer and simultaneously agrees to resell such security to the
seller at an agreed upon price and date (normally within a few days or weeks). The resale price reflects an agreed upon interest rate
effective for the period the security is held by a Fund and is unrelated to the interest rate on the security. The securities acquired
by a Fund constitute collateral for the repurchase obligation. In these transactions, the securities acquired by a Fund (including
accrued interest earned thereon) must have a total value in excess of the value of the repurchase agreement and must be held by the
custodian bank until repurchased. A Fund will not invest more than 15% of its net assets (taken at current fair value) in repurchase
agreements maturing in more than seven days. There were no repurchase agreements held at year end.

Mortgage-Related and Other Asset-Backed Securities
The Strategic Bond Fund may invest in mortgage or other asset-backed securities (“ABS”). These securities may include mortgage
instruments issued by U.S. government agencies (“agency mortgages”) or those issued by private entities (“non-agency mortgages”).
Specific types of instruments may include reverse mortgages, mortgage pass-through securities, collateralized mortgage obligations
(“CMO”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities and
other securities that directly or indirectly represent a participation in, or are secured by a payable from, mortgage loans on real
property. The value of a Fund’s mortgage-backed securities (“MBS”) may be affected by, among other things, changes or perceived
changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgage, or the
quality of the underlying assets. The mortgages underlying the securities may default or decline in quality or value. Through its
investments in MBS, a Fund has exposure to subprime loans, Alt-A loans and non-conforming loans as well as to the mortgage
and credit markets generally. Underlying collateral related to subprime, Alt-A and non-conforming mortgage loans has become
increasingly susceptible to defaults and declines in quality or value, especially in a declining residential real estate market. In
addition, regulatory or tax changes may adversely affect the mortgage securities markets as a whole.

Mortgage-Backed Securities
MBS often have stated maturities of up to thirty years when they are issued, depending upon the length of the mortgages underlying
the securities. In practice, however, unscheduled or early payments of principal and interest on the underlying mortgages may make
the securities’ effective maturity shorter than this, and the prevailing interest rates may be higher or lower than the current yield of
a Fund’s portfolio at the time resulting in reinvestment risk.

Notes to Financial Statements 167

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

Rising or high interest rates may result in slower than expected principal payments which may tend to extend the duration of MBS,
making them more volatile and more sensitive to changes in interest rates. This is known as extension risk.

MBS may have less potential for capital appreciation than comparable fixed income securities due to the likelihood of increased
prepayments of mortgages resulting from foreclosures or declining interest rates. These foreclosed or refinanced mortgages are paid
off at face value (par) or less, causing a loss, particularly for any investor who may have purchased the security at a premium or a
price above par. In such an environment, this risk limits the potential price appreciation of these securities.

Agency Mortgage-Backed Securities
Certain MBS may be issued or guaranteed by the U.S. government or a government sponsored entity, such as Fannie Mae (the Federal
National Mortgage Association) or Freddie Mac (the Federal Home Loan Mortgage Corporation). Although these instruments may
be guaranteed by the U.S. government or a government sponsored entity, many such MBS are not backed by the full faith and credit
of the United States and are still exposed to the risk of non-payment.

Privately Issued Mortgage-Backed Securities
MBS held by a Fund may be issued by private issuers including commercial banks, savings associations, mortgage companies,
investment banking firms, finance companies and special purpose finance entities (called special purpose vehicles or SPVs) and
other entities that acquire and package mortgage loans for resale as MBS. These privately issued non-agency MBS may offer higher
yields than those issued by government agencies, but also may be subject to greater price changes than governmental issues.
Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments
on their loans. Alt-A loans refer to loans extended to borrowers who have incomplete documentation of income, assets, or other
variables that are important to the credit underwriting processes. Non-conforming mortgages are loans that do not meet the standards
that allow purchase by government-sponsored enterprises. MBS with exposure to subprime loans, Alt-A loans or nonconforming
loans have had in many cases higher default rates than those loans that meet government underwriting requirements. The risk of
non-payment is greater for MBS that are backed by mortgage pools that contain subprime, Alt-A and non-conforming loans, but a
level of risk exists for all loans.

Unlike agency MBS issued or guaranteed by the U.S. government or a government-sponsored entity (e.g., Fannie Mae and Freddie
Mac), MBS issued by private issuers do not have a government or government-sponsored entity guarantee, but may have credit
enhancements provided by external entities such as banks or financial institutions or achieved through the structuring of the
transaction itself. Examples of such credit support arising out of the structure of the transaction include the issue of senior and
subordinated securities (e.g., the issuance of securities by an SPV in multiple classes or tranches, with one or more classes being
senior to other subordinated classes as to the payment of principal and interest, with the result that defaults on the underlying
mortgage loans are borne first by the holders of the subordinated class); creation of reserve funds (in which case cash or investments,
sometimes funded from a portion of the payments on the underlying mortgage loans, are held in reserve against future losses); and
overcollateralization (in which case the scheduled payments on, or the principal amount of, the underlying mortgage loans exceeds
that required to make payment on the securities and pay any servicing or other fees). However, there can be no guarantee that credit
enhancements, if any, will be sufficient to prevent losses in the event of defaults on the underlying mortgage loans. In addition, MBS
that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgages that are applicable
to those MBS that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private
MBS may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or
government-sponsored MBS and have wider variances in a number of terms including interest rate, term, size, purpose and borrower
characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured
housing loans. The coupon rates and maturities of the underlying mortgage loans in a private-label MBS pool may vary to a greater
extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans.

Privately issued MBS are not traded on an exchange and there may be a limited market for the securities, especially when there is a
perceived weakness in the mortgage and real estate market sectors. Without an active trading market, MBS held in a Fund's portfolio
may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.

168 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

Asset-Backed Securities
ABS may include MBS, loans, receivables or other assets. The value of the Funds’ ABS may be affected by, among other things,
actual or perceived changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the
receivables, the market’s assessment of the quality of underlying assets or actual or perceived changes in the credit worthiness of
the individual borrowers, the originator, the servicing agent or the financial institution providing the credit support.

Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities.
Rising or high interest rates tend to extend the duration of ABS, making them more volatile and more sensitive to changes in interest
rates. The underlying assets are sometimes subject to prepayments which can shorten the security’s weighted average life and may
lower its return. Defaults on loans underlying ABS have become an increasing risk for ABS that are secured by home equity loans
related to sub-prime, Alt-A or non-conforming mortgage loans, especially in a declining residential real estate market.

ABS (other than MBS) present certain risks that are not presented by MBS. Primarily, these securities may not have the benefit
of any security interest in the related assets. Credit card receivables are generally unsecured and the debtors are entitled to the
protection of a number of state and federal consumer credit laws, many of which give such debtors the right to set off certain amounts
owed on the credit cards, thereby reducing the balance due. There is the possibility that recoveries on repossessed collateral may
not, in some cases, be available to support payments on these securities. ABS are often backed by a pool of assets representing the
obligations of a number of different parties. To lessen the effect of failures by obligors on underlying assets to make payments, the
securities may contain elements of credit support which fall into two categories: (i) liquidity protection, and (ii) protection against
losses resulting from ultimate default by an obligor on the underlying assets. Liquidity protection refers to the provision of advances,
generally by the entity administering the pool of assets, to ensure that the receipt of payments on the underlying pool occurs in
a timely fashion. Protection against losses results from payment of the insurance obligations on at least a portion of the assets in
the pool. This protection may be provided through guarantees, policies or letters of credit obtained by the issuer or sponsor from
third parties, through various means of structuring the transaction or through a combination of such approaches. The Fund will not
pay any additional or separate fees for credit support. The degree of credit support provided for each issue is generally based on
historical information respecting the level of credit risk associated with the underlying assets.

Delinquency or loss in excess of that anticipated or failure of the credit support could adversely affect the return on an investment
in such a security. The availability of ABS may be affected by legislative or regulatory developments. It is possible that such
developments may require the Funds to dispose of any then-existing holdings of such securities.

Forward Commitments
The Strategic Bond Fund may contract to purchase securities for a fixed price at a future date beyond customary settlement time.
The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the
transaction is negotiated. The Fund may dispose of a forward commitment transaction prior to settlement if it is appropriate to do
so and may realize short-term gains (or losses) upon such sale. When effecting such transactions, cash or liquid high-grade debt
obligations of the Fund in a dollar amount sufficient to make payment for the portfolio securities to be purchased will be earmarked
on the Fund’s records at the trade date and until the transaction is settled. A forward commitment transaction involves a risk of
loss if the value of the security to be purchased declines prior to the settlement date or the other party to the transaction fails to
complete the transaction.

The Strategic Bond Fund may invest in to-be-announced ("TBA") mortgage-backed securities. A TBA security is a forward
mortgage-backed securities trade in which a seller agrees to issue a TBA mortgage-backed security at a future date. The securities
are purchased and sold on a forward commitment basis with an approximate principal amount and maturity date. The actual
principal amount and maturity date will be determined upon settlement when the specific mortgage pools are assigned. These
securities are within the parameters of industry “good delivery” standards.

As of December 31, 2017, the Strategic Bond Fund had $747,000 cash collateral balances in connection with TBAs.

Inflation-Indexed Bonds
The Strategic Bond Fund may invest in inflation-indexed securities, which are typically bonds or notes designed to provide a return
higher than the rate of inflation (based on a designated index) if held to maturity. A common type of inflation-indexed security is a
U.S. Treasury Inflation-Protected Security (“TIPS”). The principal of a TIPS increases with inflation and decreases with deflation,
as measured by the Consumer Price Index. When a TIPS matures, the adjusted principal or original principal is paid, whichever is

Notes to Financial Statements 169

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

greater. TIPS pay interest twice a year, at a fixed rate. The rate is applied to the adjusted principal; so, like the principal, interest
payments rise with inflation and fall with deflation.

Guarantees
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general
indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that
may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.

Market, Credit and Counterparty Risk
In the normal course of business, the Funds trade financial instruments and enter into financial transactions where risk of potential
loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar
to credit risk, the Funds may also be exposed to counterparty risk or risk that an institution or other entity with which the Funds
have unsettled or open transactions will default. The potential loss could exceed the value of the relevant assets recorded in the
Funds' financial statements (the “Assets”). The Assets consist principally of cash due from counterparties and investments. The
extent of the Funds’ exposure to market, credit and counterparty risks with respect to the Assets approximates their carrying value
as recorded in the Funds’ Statements of Assets and Liabilities.

Global economies and financial markets are becoming increasingly interconnected and political and economic conditions (including
recent instability and volatility) and events (including natural disasters) in one country, region or financial market may adversely
impact issuers in a different country, region or financial market. As a result, issuers of securities held by a Fund may experience
significant declines in the value of their assets and even cease operations. Such conditions and/or events may not have the same
impact on all types of securities and may expose a Fund to greater market and liquidity risk and potential difficulty in valuing
portfolio instruments held. This could cause a Fund to underperform other types of investments.
3. Investment Transactions

Securities
During the period ended December 31, 2017, purchases and sales of investment securities (excluding U.S. Government and
Agency obligations, short-term investments, options, futures and repurchase agreements) were as follows:

		Purchases		Sales
U. S. Strategic Equity Fund	$	353,184,104	$	417,812,599
U. S. Small Cap Equity Fund		312,943,486		326,479,226
International Developed Markets Fund		431,400,294		434,093,620
Strategic Bond Fund		402,968,491		323,415,542
Global Real Estate Securities Fund		732,072,277		693,470,833

Purchases and sales of U.S. Government and Agency obligations (excluding short-term investments, options, futures and repurchase
agreements) were as follows:

		Purchases		Sales
Strategic Bond Fund	$	945,363,800	$	831,735,882

Securities Lending
The Investment Company has a securities lending program whereby each Fund can loan securities with a value up to 33 1/3% of
each Fund’s total assets. The maturity associated with these securities is considered continuous. The Fund receives cash (U.S.
currency), U.S. Government or U.S. Government Agency obligations as collateral against the loaned securities. The cash collateral
cannot be resold, repledged or rehypothecated. As of December 31, 2017, to the extent that a loan was collateralized by cash, such
collateral was invested by the securities lending agent, Brown Brothers Harriman & Co. (“BBH”), in the U.S. Cash Collateral Fund,
an unregistered fund advised by RIM. The collateral received is recorded on a lending Fund’s Statement of Assets and Liabilities
along with the related obligation to return the collateral.

Affiliated income generated from the investment of cash collateral, less negotiated rebate fees paid to participating brokers, is
divided between the Fund and BBH and is reported as securities lending income on the Fund's Statement of Operations. To the
extent that a loan is secured by non-cash collateral, brokers pay the Fund negotiated lenders’ fees, which are divided between the
Fund and BBH and are recorded as securities lending income for the Fund. All collateral received will be in an amount at least

170 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

equal to 102% (for loans of U.S. securities) or 105% (for loans of non-U.S. securities) of the fair value of the loaned securities at the
inception of each loan. The fair value of the loaned securities is determined at the close of business of the Fund and any additional
required collateral is delivered to the Fund the next day. Should the borrower of the securities fail financially, there is a risk of delay
in recovery of the securities or loss of rights in the collateral.
4. Related Party Transactions, Fees and Expenses

Adviser, Administrator, Transfer and Dividend Disbursing Agent
RIM provides or oversees the provision of all investment advisory and portfolio management services for the Funds, including
developing the investment program for each Fund and managing each Fund's overall exposures. From its advisory fees received
from the Funds, RIM, as agent for RIC, pays all fees to the money managers for their investment advisory services. Each money
manager has agreed that it will look only to RIM for the payment of the money manager’s fee, after RIC has paid RIM. Fees paid
to the money managers are not affected by any voluntary or statutory expense limitations. RIFUS is the Funds' administrator and
transfer agent. RIFUS, in its capacity as the Funds' administrator, provides or oversees the provision of all administrative services
for the Funds. RIFUS, in its capacity as the Funds' transfer agent and dividend disbursing agent, is responsible for providing
transfer agency and dividend disbursing services to the Funds. RIFUS is a wholly-owned subsidiary of RIM. RIM is an indirect,
wholly-owned subsidiary of Russell Investments Group, Ltd., a Cayman company.

The Funds are permitted to invest their cash (i.e., cash awaiting investment or cash held to meet redemption requests or to pay
expenses) in the U.S. Cash Management Fund, an unregistered fund advised by RIM. As of December 31, 2017, the Funds
had invested $137,691,429 in the U.S. Cash Management Fund. In addition, all or a portion of the collateral received from the
Investment Company’s securities lending program in the amount of $21,824,502 is invested in the U.S. Cash Collateral Fund, an
unregistered fund advised by RIM.

The advisory fee is based upon the average daily net assets of each Fund and the administration fee of up to 0.05% is based on the
combined average daily net assets of the Funds. Advisory and administration fees are paid monthly.

		Annual Rate
Funds	Adviser (%)		Administrator (%)
U. S. Strategic Equity Fund		0.73	Up to 0.05
U. S. Small Cap Equity Fund		0.90	Up to 0.05
International Developed Markets Fund		0.90	Up to 0.05
Strategic Bond Fund		0.55	Up to 0.05
Global Real Estate Securities Fund		0.80	Up to 0.05

The following table shows the total amount of each of these fees paid by the Funds for the period ended December 31, 2017:

		Advisory		Administrative
U. S. Strategic Equity Fund	$	3,372,251	$	230,976
U. S. Small Cap Equity Fund		2,193,971		121,888
International Developed Markets Fund		3,557,642		197,646
Strategic Bond Fund		4,804,404		436,764
Global Real Estate Securities Fund		6,762,068		422,630

RIM has agreed to certain waivers of its advisory fees as follows:

For the Strategic Bond Fund, RIM contractually agreed, until April 30, 2017, to waive 0.02% of its 0.55% advisory fee. The total
amount of the waiver for the period ended December 31, 2017 was $55,837.There were no reimbursements during the period.

RIM does not have the ability to recover amounts waived or reimbursed from previous periods.

Transfer and Dividend Disbursing Agent
RIFUS serves as transfer agent and provides dividend disbursing services to the Funds. For this service, RIFUS is paid a fee based
upon the average daily net assets of the Funds for transfer agency and dividend disbursing services. RIFUS retains a portion of this
fee for services provided to the Funds and pays the balance to unaffiliated agents who assist in providing these services. Transfer
agency fees paid by the Funds presented herein for the period ended December 31, 2017 were as follows:

Notes to Financial Statements 171

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

		Amount
U. S. Strategic Equity Fund	$	20,326
U. S. Small Cap Equity Fund		10,726
International Developed Markets Fund		17,393
Strategic Bond Fund		38,435
Global Real Estate Securities Fund		37,191

Distributor
Russell Investments Financial Services, LLC (the “Distributor”), a wholly-owned subsidiary of RIM, is the distributor for the
Investment Company, pursuant to a distribution agreement with the Investment Company. The Distributor receives no compensation
from the Investment Company for its services.

Affiliated Brokerage Commissions
The Funds effect certain transactions through Russell Investments Implementation Services, LLC (“RIIS”). RIIS is a registered
broker and investment adviser and an affiliate of RIM. RIIS uses a multi-venue trade management approach whereby RIIS allocates
trades among RIIS’ network of independent brokers for execution, clearing and other services. Trades placed through RIIS and its
independent brokers are made (i) to manage trading associated with changes in money managers, rebalancing across existing money
managers, cash flows and other portfolio transitions, (ii) to execute portfolio securities transactions for the portion of each Fund’s
assets that RIM determines not to allocate to money managers, including assets RIM may manage to effect a Fund’s investment
strategies and/or to modify a Fund's overall portfolio characteristics and for each Fund’s cash reserves, (iii) to execute portfolio
securities transactions for the portion of a Fund’s assets that RIM manages based upon model portfolios provided by the Fund’s
non-discretionary managers, or (iv) to execute money manager’s portfolio securities transactions for the segment of a Fund’s portfolio
assigned to the money manager. RIM has authorized RIIS to effect certain futures, swaps, OTC derivative transactions, and cleared
swaps, including foreign currency spots, forwards and options trading on behalf of the Funds.

The Funds are permitted to purchase or sell securities from or to certain related affiliated funds under specified conditions outlined
in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the
Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment
adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a -7 of the Investment
Company Act. Further, as defined under the procedures each transaction is effected at the current market value.

During the period ended December 31, 2017, the Funds below engaged in purchases and sales of securities pursuant to Rule 17a
-7 of the Investment Company Act as follows (amount in thousands):

		Purchases			Sales
International Developed Markets Fund	$		-	$	265,385

Board of Trustees
The Russell Investments Fund Complex consists of Russell Investment Company ("RIC"), which has 34 funds and RIF, which has
9 funds. Each of the Trustees is a Trustee of RIC and RIF. The Russell Investments Fund Complex compensates each Trustee who
is not an employee of RIM or its affiliates. Trustee compensation and expenses are allocated to each Fund based on its net assets
relative to other funds in the Russell Investments Fund Complex.

For the period ended December 31, 2017, the regular compensation paid to the Trustees by the Russell Investments Fund Complex
was $1,394,250.
5. Federal Income Taxes
At December 31, 2017, the following Funds had net tax basis capital loss carryforwards which may be applied against any net
realized taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first. Available capital
loss carryforwards and expiration dates are as follows:

								No Expiration
Funds		12/31/2017	10/31/2018			10/31/2019		Short Term		Long-Term		Totals
Strategic Bond Fund	$	—	$	—	$	—	$	4,638,689	$	2,747,409	$	7,386,098

172 Notes to Financial Statements

Russell Investment Funds

Notes to Financial Statements, continued — December 31, 2017

Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses
incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred in post-
enactment taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment
capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being
considered all short-term as under previous law.
6. Record Ownership
At December 31, 2017, the following table includes shareholders of record with greater than 10% of the total outstanding shares
of each respective Fund.

	# of Shareholders		%
U. S. Strategic Equity Fund		2	85.9
U. S. Small Cap Equity Fund		3	80.8
International Developed Markets Fund		2	71.0
Strategic Bond Fund		1	69.9
Global Real Estate Securities Fund		2	91.8

7. Illiquid and Restricted Securities
No more than 15% of a Fund's net assets will be invested in securities, including repurchase agreements of more than seven days'
duration, that are illiquid. This limitation is applied at the time of purchase. A security is illiquid if it cannot be disposed of within
seven days in the ordinary course of business at approximately the amount at which a Fund has valued such security. There may be
delays in selling illiquid securities at prices representing their fair value.

The Board of the Funds has adopted procedures to permit each Fund to deem as liquid the following types of securities that are
otherwise presumed to be illiquid securities: (i) certain restricted securities that are eligible for resale pursuant to Rule 144A
under the Securities Act; (ii) certain commercial paper issued in reliance on the exemption from registration provided by Section
4(a)(2) of the Securities Act; (iii) certain interest-only and principal-only fixed mortgage-backed securities issued by the United
States government or its agencies and instrumentalities; (iv) certain municipal lease obligations and certificates of participation
in municipal lease obligations; and (v) certain restricted debt securities that are subject to unconditional puts or demand features
exercisable within seven days.

A restricted security may have contractual restrictions on resale, may have been offered in a private placement transaction, and may
not be registered under the Securities Act of 1933.

See each Fund’s Schedule of Investments for a list of securities that have been footnoted as an illiquid security, a restricted security
or as an illiquid and restricted security.
8. Commitments and Contingencies
The Strategic Bond Fund may enter into certain credit agreements, all or a portion of which may be unfunded. The Fund is obligated
to fund these loan commitments at the borrowers' discretion. Unfunded loan commitments and funded portions of credit agreements
are marked to market daily and any unrealized appreciation or depreciation is included in the Statements of Assets and Liabilities
and the Statements of Operations. Funded portions of credit agreements are presented in the Schedules of Investments. For the
period ended December 31, 2017, there were no unfunded loan commitments held by the Fund.
9. Subsequent Events
Management has evaluated the events and/or transactions that have occurred through the date the financial statements were issued
and noted no events have occurred that require disclosure.

Notes to Financial Statements 173

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Russell Investment Funds and Shareholders of U.S. Strategic Equity Fund, U.S. Small Cap Equity Fund,
International Developed Markets Fund, Strategic Bond Fund and Global Real Estate Securities Fund

Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of U.S. Strategic
Equity Fund (formerly Multi-Style Equity Fund), U.S. Small Cap Equity Fund (formerly Aggressive Equity Fund), International
Developed Markets Fund (formerly Non-U.S. Fund), Strategic Bond Fund (formerly Core Bond Fund) and Global Real Estate
Securities Fund (five of the funds constituting Russell Investment Funds, hereafter collectively referred to as the “Funds”) as of
December 31, 2017, the related statements of operations for the year ended December 31, 2017, the statements of changes in net
assets for each of the two years in the period ended December 31, 2017, including the related notes, and the financial highlights for
each of the five years in the period ended December 31, 2017 (collectively referred to as the “financial statements”). In our opinion,
the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2017,
the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the
period ended December 31, 2017 and each of the financial highlights for each of the five years in the period ended December 31,
2017 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the
Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our
procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the custodian, transfer
agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits
provide a reasonable basis for our opinions.

We have served as the auditor of one or more investment companies in the Russell Investments family of funds since 1981.

174 Report of Independent Registered Public Accounting Firm

Russell Investment Funds

Tax Information — December 31, 2017 (Unaudited)

For the tax year ended December 31, 2017, the Funds hereby designate 100% or the maximum amount allowable, of its net taxable
income as qualified dividends taxed at individual net capital gain rates.

The Form 1099 you receive in January 2018 will show the tax status of all distributions paid to your account in calendar year 2017.

The Funds designate dividends distributed during the fiscal year as qualifying for the dividends received deduction for corporate
shareholders as follows:

U. S. Strategic Equity	35.7	%
U. S. Small Cap Equity	18.6	%
International Developed Markets	0.0	%
Strategic Bond	0.0	%
Global Real Estate Securities	0.0	%

Pursuant to Section 852 of the Internal Revenue Code, the Funds designate the following amounts as long-term capital gain
dividends for their taxable year ended December 31, 2017:

U. S. Strategic Equity	$	29,150,493
U. S. Small Cap Equity	$	11,571,044
International Developed Markets	$	14,485,707
Strategic Bond	$	—
Global Real Estate Securities	$	16,441,237

The Funds listed below paid foreign taxes and recognized foreign source income during the taxable year ended December 31, 2017.
Pursuant to Section 853 of the Internal Revenue Code, the Funds designate the following per share amounts of foreign taxes paid and
income earned from foreign sources:

				Foreign				Foreign
				Taxes				Source
		Foreign		Paid		Foreign Source		Income Per
Fund Name		Taxes Paid		Per Share		Income		Share
International Developed Markets	$	819,920	$	0.0247	$	10,757,448	$	0.3236

Please consult a tax adviser for any questions about federal or state income tax laws.

Tax Information 175

Russell Investment Funds

Affiliated Brokerage Transactions — December 31, 2017 (Unaudited)

As discussed in the Note 4 in the Notes to Financial Statements contained in this annual report, the Funds utilize RIIS and its
independent brokers. RIIS is a registered broker dealer and investment adviser and an affiliate of RIM. RIIS uses a multi-venue trade
management approach whereby RIIS allocates trades among RIIS’ network of independent brokers for execution, clearing, and other
services. Trades placed through RIIS and its independent brokers are made (i) to manage trading associated with changes in money
managers, rebalancing across existing money managers, cash flows and other portfolio transitions, (ii) to execute portfolio securities
transactions for each Fund’s assets that RIM determines not to allocate to money managers including assets RIM may manage to effect
a Fund’s investment strategies and/or to modify a Fund’s overall portfolio characteristics and for each Fund’s cash reserves, (iii) to
execute portfolio securities transactions for the portion of a Fund’s assets that RIM manages based upon model portfolios provided by
the Funds’ non-discretionary managers or (iv) to execute money manager portfolio securities transactions for the segment of a Fund’s
portfolio assigned to the money manager, or (v) to execute foreign currency transactions on behalf of the Funds. RIM has authorized
RIIS to effect certain futures, swaps, OTC derivative transactions, and cleared swaps, including foreign currency spots, forwards and
options trading on behalf of the Funds.

Amounts retained by RIIS for the period ended December 31, 2017 were as follows:

Affiliated Broker	Fund Name		2017
RIIS
	U. S. Strategic Equity Fund	$	6,900
	U. S. Small Cap Equity Fund		48,077
	International Developed Markets Fund		121,387
	Strategic Bond Fund		—
	Global Real Estate Securities Fund		62,182

176 Affiliated Brokerage Transactions

Russell Investment Funds

Basis for Approval of Investment Advisory Contracts — (Unaudited)

Approval of Money Manager Contracts
The Board received the following proposals from RIM: (i) at a meeting held on August 29, 2017, to approve a new portfolio management
contract for an existing Money Manager of the U.S. Strategic Equity Fund and the International Developed Markets Fund, and at
that same meeting to approve new portfolio management contracts for the Strategic Bond Fund resulting from a change of control for
two of the Fund’s Money Managers; and (ii) at a meeting held on December 5, 2017, to effect Money Manager changes for the U.S.
Small Cap Equity Fund and International Developed Markets Fund. In the case of each proposed change, the Trustees approved the
terms of the proposed portfolio management contract based upon RIM’s recommendation to hire the Money Manager at the proposed
fee rate; information as to the reason for the proposed change; information as to the Money Manager’s role in the management of the
Fund’s investment portfolio (including the amount of Fund assets to be allocated to the Money Manager or managed pursuant to the
Money Manager’s strategy) and RIM’s evaluation of the anticipated quality of the investment advisory services to be provided by the
Money Manager; information as to any significant business relationships between the Money Manager and RIM or Russell Investments
Financial Services, LLC, the Fund’s underwriter; the CCO’s evaluation of the Money Manager’s compliance program, policies and
procedures in relation to the Money Manager’s role in the management of the Fund’s investment portfolio, and certification that they
were consistent with applicable legal standards; RIM’s explanation as to the lack of relevance of Money Manager profitability to the
evaluation of portfolio management contracts with Money Managers because the willingness of Money Managers to serve in such
capacity depends upon arm’s-length negotiations with RIM; RIM’s awareness of the standard fee rates charged by the Money Manager
to other clients; RIM’s belief that the proposed Money Manager fees would be reasonable in light of the anticipated quality of investment
advisory services to be rendered; the increase or decrease in aggregate Money Manager fees to be paid by RIM from its advisory fee
as a result of the engagement of the Money Manager; and the expected costs of transitioning Fund assets to the Money Manager or its
strategy. The Trustees’ approval also reflected their findings at prior meetings, including their December 2015 meeting in connection
with their evaluation and approval of the Funds’ existing investment advisory agreements with RIM and then current Money Managers
for the Funds, as well as information received throughout the course of the year regarding, among other things, the quality of services
provided to the Funds in the case of existing Money Managers and the reasonableness of the aggregate investment advisory fees paid by
the Funds, as well as the fact that the aggregate investment advisory fees paid by the Funds would not increase or decrease as a result of
the implementation of the proposed Money Manager changes because the Money Manager’s investment advisory fees are paid by RIM.

Basis for Approval of Investment Advisory Contracts 177

Russell Investment Funds

Shareholder Requests for Additional Information — December 31, 2017 (Unaudited)

A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third
quarters of each fiscal year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354, (ii)
on the Securities and Exchange Commission’s website at www.sec.gov, and (iii) at the Securities and Exchange Commission’s Office of
Investor Education and Advocacy (formerly, the Public Reference room).

The Board has delegated to RIM, as RIF’s investment adviser, the primary responsibility for monitoring, evaluating and voting proxies
solicited by or with respect to issuers of securities in which assets of the Funds may be invested. RIM has established a proxy voting
committee and has adopted written proxy voting policies and procedures (“P&P”) and proxy voting guidelines (“Guidelines”). The
Funds maintain a Portfolio Holdings Disclosure Policy that governs the timing and circumstances of disclosure to shareholders and
third parties of information regarding the portfolio investments held by the Funds. A description of the P&P, Guidelines, Portfolio
Holdings Disclosure Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional
Information (“SAI”). The SAI and information regarding how the Funds voted proxies relating to portfolio securities during the most
recent 12-month period ended June 30, 2017 are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354,
and (ii) on the Securities and Exchange Commission’s website at www.sec.gov.

If possible, depending on contract owner registration and address information, and unless you have otherwise opted out, only one copy
of the RIF prospectus and each annual and semi-annual report will be sent to contract owners at the same address. If you would like
to receive a separate copy of these documents, please contact your Insurance Company. If you currently receive multiple copies of the

prospectus, annual report and semi-annual report and would like to request to receive a single copy of these documents in the future,
please call your insurance company.

Some insurance companies may offer electronic delivery of the Funds’ prospectuses and annual and semi-annual reports. Please
contact your insurance company for further details.

178 Shareholder Requests for Additional Information

Russell Investment Funds

Disclosure of Information about Fund Trustees and Officers — December 31, 2017
(Unaudited)

The following tables provide information for each officer and trustee of the Russell Investments Fund Complex. The Russell Investments
Fund Complex consists of Russell Investment Company (“RIC”), which has 34 funds and Russell Investment Funds (“RIF”), which
has 9 funds. Each of the trustees is a trustee of RIC and RIF. The first table provides information for the interested trustee. The second
table provides information for the independent trustees. The third table provides information for the Trustee Emeritus. The fourth table
provides information for the officers. Furthermore, each Trustee possesses the following specific attributes: Mr. Alston has business,
financial and investment experience as a senior executive of an international real estate firm and is trained as a lawyer; Ms. Blake has
had experience as a certified public accountant and has had experience as a member of boards of directors/trustees of other investment
companies; Ms. Burgermeister has had experience as a certified public accountant and as a member of boards of directors/trustees of
other investment companies and has been determined by the Board to be an “audit committee financial expert”; Mr. Connealy has had
experience with other investment companies and their investment advisers, first as a partner in the investment management practice of
PricewaterhouseCoopers LLP and, subsequently, as the senior financial executive of two other investment organizations sponsoring and
managing investment companies; Ms. Krysty has had business, financial and investment experience as the founder and senior executive
of a registered investment adviser focusing on high net worth individuals as well as a certified public accountant and a member of the
boards of other corporations and non-profit organizations; Mr. Tennison has had business, financial and investment experience as a senior
executive of a corporation with international activities and was trained as an accountant; and Mr. Thompson has had experience in business,
governance, investment and financial reporting matters as a senior executive of an organization sponsoring and managing other investment
companies, and, subsequently, has served as a board member of other investment companies. Mr. Spina has had experience with other
financial services companies, including companies engaged in the sponsorship, management and distribution of investment companies.
As a senior officer and/or director of the Funds, the Adviser and various affiliates of the Adviser providing services to the Funds, Mr.
Spina is in a position to provide the Board with such parties' perspectives on the management, operations and distribution of the Funds.

Name,	Position(s) Held	Term	Principal Occupation(s)	No. of	Other
Age,	With Fund and	of	During the	Portfolios	Directorships
Address	Length of	Office *	Past 5 Years	in Russell	Held by Trustee
	Time Served			Investments	During the
				Fund	Past 5 Years
				Complex
				Overseen
				by Trustee
INTERESTED TRUSTEE
Mark Spina, #	Trustee since 2017	Appointed until	• President and CEO, RIC and RIF	43	None
Born June 8, 1970	President and Chief	successor is	• Chairman of the Board, President,
1301 Second Avenue,	Executive Officer	duly elected and	Russell Investments Financial
18th Floor, Seattle, WA	since 2017	qualified	Services, LLC (“RIFIS”)
98101		Appointed	• Director, RIM.
		until successor	• From 2015-2016, Head of
		is chosen and	Intermediary Distribution and
		qualified by	President of Pioneer Funds
		Trustees	Distributor
			• From 2008-2015 Head of
			Intermediary Distribution, Voya
			Investment Management
INDEPENDENT TRUSTEES
Thaddas L. Alston,	Trustee since 2006	Appointed until	Senior Vice President, Larco	43	Until October
Born April 7, 1945		successor is	Investments, Ltd. (real estate firm)		2015, Trustee,
1301 Second Avenue,		duly elected and			Russell
18th Floor, Seattle, WA		qualified			Exchange
98101					Traded Funds
					Trust

Disclosure of Information about Fund Trustees and Officers 179

Russell Investment Funds

Disclosure of Information about Fund Trustees and Officers, continued — December
31, 2017 (Unaudited)

	Name,	Position(s) Held	Term	Principal Occupation(s)	No. of	Other
	Age,	With Fund and	of	During the	Portfolios	Directorships
	Address	Length of	Office *	Past 5 Years	in Russell	Held by Trustee
		Time Served			Investments	During the
					Fund	Past 5 Years
					Complex
					Overseen
					by Trustee
Kristianne Blake,		Trustee since 2000	Appointed until	• Lead Independent Director,	43	• Lead
Born January 22, 1954		Chairman since 2005	successor is	Avista Corp (electric utilities)		Independent
1301 Second Avenue,			duly elected and	• Until May 2017, Director		Director,
18th Floor, Seattle, WA			qualified	and Chairman of the Audit		Avista Corp
98101			Approved	Committee, Avista Corp (electric		(electric
			annually	utilities)		utilities)
				• Regent, University of Washington		• Until May
				• President, Kristianne Gates		2017,
				Blake, P. S. (accounting services)		Director,
				• Until June 30, 2014, Director,		Avista Corp
				Ecova (total energy and		(electric
				sustainability management)		utilities)
				• Until December 31, 2013, Trustee		• Until June
				and Chairman of the Operations		30, 2014,
				Committee, Principal Investors		Director,
				Funds and Principal Variable		Ecova (total
				Contracts Funds (investment		energy and
				company)		sustainability
						management)
						• Until
						December 31,
						2013, Trustee,
						Principal
						Investors
						Funds
						(investment
						company)
						• Until
						December 31,
						2013, Trustee
						Principal
						Variable
						Contracts
						Funds
						(investment
						company)
						• Until October
						2015, Trustee,
						Russell
						Exchange
						Traded Funds
						Trust
*	Each Trustee is subject to mandatory retirement at age 75.
#	Mr. Spina is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee.

180 Disclosure of Information about Fund Trustees and Officers

Russell Investment Funds

Disclosure of Information about Fund Trustees and Officers, continued — December
31, 2017 (Unaudited)

Name,	Position(s) Held	Term	Principal Occupation(s)	No. of	Other
Age,	With Fund and	of	During the	Portfolios	Directorships
Address	Length of	Office *	Past 5 Years	in Russell	Held by Trustee
	Time Served			Investments	During the
				Fund	Past 5 Years
				Complex
				Overseen
				by Trustee
INDEPENDENT TRUSTEES (continued)
Cheryl Burgermeister,	Trustee since 2012	Appointed until	• Retired	43	• Trustee and
Born June 26, 1951	Chairman of the	successor is	• Trustee and Chairperson of		Chairperson of
1301 Second Avenue,	Audit Committee	duly elected and	Select Sector SPDR Funds		Select Sector
18th Floor, Seattle, WA	since 2017	qualified	(investment company)		SPDR Funds
98101		Appointed until	• Until December 31, 2014,		(investment
		successor is	Chairperson of Audit Committee,		company)
		duly elected and	Select Sector SPDR Funds		• From August
		qualified	(investment company)		2012 through
					May 2016,
					Trustee, ALPS
					Series Trust
					(investment
					company)
					• Until
					December
					31, 2014,
					Chairperson
					of Audit
					Committee,
					Select Sector
					SPDR Funds
					(investment
					company)
					• Until October
					2015, Trustee,
					Russell
					Exchange
					Traded Funds
					Trust
Daniel P. Connealy,	Trustee since 2003	Appointed until	• Retired	43	Until October
Born June 6, 1946		successor is	• June 2004 to June 2014, Senior		2015, Trustee,
1301 Second Avenue,		duly elected and	Vice President and Chief		Russell
18th Floor, Seattle, WA		qualified	Financial Officer, Waddell &		Exchange
98101			Reed Financial, Inc. (investment		Traded Funds
			company)		Trust
Katherine W. Krysty,	Trustee since 2014	Appointed until	• Retired	43	Until October
Born December 3, 1951		successor is	• January 2011 through March		2015, Trustee,
1301 Second Avenue		duly elected and	2013, President Emerita, Laird		Russell
18th Floor, Seattle, WA		qualified	Norton Wealth Management		Exchange
98101			(investment company)		Traded Funds
					Trust

Disclosure of Information about Fund Trustees and Officers 181

Russell Investment Funds

Disclosure of Information about Fund Trustees and Officers, continued — December
31, 2017 (Unaudited)

		Position(s) Held	Term	Principal Occupation(s)	No. of	Other
	Name,	With Fund and	of	During the	Portfolios	Directorships
	Age,	Length of	Office *	Past 5 Years	in Russell	Held by Trustee
	Address	Time Served			Investments	During the
					Fund	Past 5 Years
					Complex
					Overseen
					by Trustee
INDEPENDENT TRUSTEES (continued)
Raymond P. Tennison, Jr. ,		Trustee since 2000	Appointed until	• Retired	43	Until October
Born December 21, 1955		Chairman of	successor is	• From January 2008 to December		2015, Trustee,
1301 Second Avenue		the Nominating	duly elected and	2011, Vice Chairman of the		Russell
18th Floor, Seattle, WA		and Governance	qualified	Board, Simpson Investment		Exchange
98101		Committee since	Appointed until	Company (paper and forest		Traded Funds
		2007	successor is	products)		Trust
			duly elected and
			qualified
Jack R. Thompson,		Trustee since 2005	Appointed until	• Retired	43	• Until October
Born March 21, 1949		Chairman of	successor is			2015, Trustee,
1301 Second Avenue,		the Investment	duly elected and			Russell
18th Floor, Seattle, WA		Committee since	qualified			Exchange
98101		2015	Appointed until			Traded Funds
			successor is			Trust
			duly elected and
			qualified
*	Each Trustee is subject to mandatory retirement at age 75.
	Name,	Position(s) Held	Term	Principal Occupation(s)	No. of	Other
	Age,	With Fund and	of	During the	Portfolios	Directorships
	Address	Length of	Office	Past 5 Years	in Russell	Held by Trustee
		Time Served			Investments	During the
					Fund	Past 5 Years
					Complex
					Overseen
					by Trustee
TRUSTEE EMERITUS
George F. Russell, Jr. ,		Trustee Emeritus and	Until resignation	• Director Emeritus, RIM	43	None
Born July 3, 1932		Chairman Emeritus	or removal
1301 Second Avenue,		since 1999
18th Floor, Seattle, WA
98101

182 Disclosure of Information about Fund Trustees and Officers

Russell Investment Funds

Disclosure of Information about Fund Trustees and Officers, continued — December
31, 2017 (Unaudited)

Name,	Positions(s) Held	Term	Principal Occupation(s)
Age,	With Fund and	of	During the
Address	Length of	Office	Past 5 Years
	Time Served
OFFICERS
Mark Spina,	President and Chief	Until successor	• President and Chief Executive Officer, RIC and RIF
Born June 8, 1970	Executive Officer	is chosen and	• Chairman of the Board, President, RIFIS.
1301 Second Avenue	since 2017	qualified by	• Chairman of the Board, RIFUS
18th Floor, Seattle, WA		Trustees	• Director, RIM
98101			• From 2015 to 2016, Head of Intermediary Distribution and President
			of Pioneer Funds Distributor
			• From 2008 to 2015, Head of Intermediary Distribution, Voya
			Investment Management
Cheryl Wichers,	Chief Compliance	Until removed	• Chief Compliance Officer, RIC and RIF
Born December 16, 1966	Officer since 2005	by Independent	• Chief Compliance Officer, RIFUS
1301 Second Avenue		Trustees	• 2011 to 2016 Chief Compliance Officer, U. S. One , LLC
18th Floor, Seattle, WA
98101
Mark E. Swanson,	Treasurer, Chief	Until successor	• Global Head of Fund Services, Russell Investments
Born November 26, 1963	Accounting Officer	is chosen and	• Treasurer, Chief Accounting Officer and CFO, RIC and RIF
1301 Second Avenue	and Chief Financial	qualified by	• Director and President, RIFUS
18th Floor, Seattle, WA	Officer since 1998	Trustees	• Director RIM, Russell Investments Trust Company (“RITC”) and
98101			RIFIS
			• President and Chief Executive Officer, RIC and RIF, June 2016 to
			June 2017
			• October 2011 to December 2013, Head of North America Operations
			Russell Investments
Jeffrey T. Hussey,	Chief Investment	Until removed by	• Global Chief Investment Officer, Russell Investments
Born May 2, 1969	Officer since 2013	Trustees	• Chief Investment Officer, RIC and RIF
1301 Second Avenue,			• Chairman of the Board and President, RIM
18th Floor, Seattle WA			• Director, RITC, Russell Investments Implementation Services, LLC
98101			and Russell Investments Delaware, LLC
			• Board of Managers, Russell Investments Funds Management, LLC
			• 2003 to 2013 Chief Investment Officer, Fixed Income, Russell
			Investments
Mary Beth R. Albaneze,	Secretary since 2010	Until successor	• Associate General Counsel, Russell Investments
Born April 25, 1969		is chosen and	• Secretary, RIM, RIFUS and RIFIS
1301 Second Avenue,		qualified by	• Secretary and Chief Legal Officer, RIC and RIF
18th Floor, Seattle, WA		Trustees	• Assistant Secretary, Russell Investments Insurance Agency, LLC
98101			(“RIIA”)(insurance agency) and U. S. One Inc.

Disclosure of Information about Fund Trustees and Officers 183

Russell Investment Funds

Adviser, Money Managers and Service Providers — December 31, 2017

Interested Trustee
Mark Spina	Independent Registered Public Accounting Firm
Independent Trustees	PricewaterhouseCoopers LLP
Thaddas L. Alston	1420 5th Avenue, Suite 2800
Kristianne Blake	Seattle, WA 98101
Cheryl Burgermeister	Money Managers
Daniel P. Connealy
Katherine W. Krysty	U. S. Strategic Equity Fund
Raymond P. Tennison, Jr.	Barrow, Hanley, Mewhinney & Strauss, LLC, Dallas, TX
Jack R. Thompson	Jacobs Levy Equity Management, Inc. , Florham Park, NJ
	Mar Vista Investment Partners, LLC, Los Angeles, CA
Trustee Emeritus	Suffolk Capital Management, LLC, New York, NY
George F. Russell, Jr.	William Blair Investment Management, LLC, Chicago, IL
Officers	U. S. Small Cap Equity Fund
Mark Spina, President and Chief Executive Officer	Ancora Advisors, LLC, Cleveland, OH
Mark E. Swanson, Treasurer, Chief Accounting Officer and	Copeland Capital Management, LLC, Conshohocken, PA
Chief Financial Officer	DePrince, Race & Zollo, Inc. , Winter Park, FL
Cheryl Wichers, Chief Compliance Officer	Falcon Point Capital, LLC, San Francisco, CA
Jeffrey T. Hussey, Chief Investment Officer	Penn Capital Management Company, Inc. , Philadelphia, PA
Mary Beth R. Albaneze, Secretary	Snow Capital Management L. P. , Sewickley, PA
Adviser	Timpani Capital Management LLC, Milwaukee, WI
Russell Investment Management, LLC	International Developed Markets Fund
1301 Second Avenue	GQG Partners LLC, Fort Lauderdale, FL
Seattle, WA 98101	Janus Capital Management LLC, Denver, CO and
Administrator, Transfer and Dividend Disbursing	Perkins Investment Management LLC, Chicago, IL
Agent	Numeric Investors LLC, Boston, MA
Russell Investments Fund Services, LLC	Pzena Investment Management, LLC, New York, NY
1301 Second Avenue	Wellington Management LLP, Boston, MA
Seattle, WA 98101	Strategic Bond Fund
Custodian	Colchester Global Investors Limited, London, England
State Street Bank and Trust Company	Logan Circle Partners, L. P. , Philadelphia, PA
1 Heritage Drive	Pareto Investment Management Limited, London, United
North Quincy, MA 02171	Kingdom
	Schroder Investment Management North America Inc. , New
Office of Shareholder Inquiries	York, NY
1301 Second Avenue	Scout Investments, Inc. , Kansas City, MO
Seattle, WA 98101	Western Asset Management Company, Pasadena, CA and
(800) 787-7354	Western Asset Management Company Limited, London,
Legal Counsel	United Kingdom
Dechert LLP	Global Real Estate Securities Fund
One International Place, 40th Floor	Cohen & Steers Capital Management, Inc. , New York, NY,
100 Oliver Street	Cohen & Steers UK Limited, London, United Kingdom and
Boston, MA 02110	Cohen & Steers Asia Limited, Hong Kong, China
Distributor	Morgan Stanley Investment Management Inc. , New York, NY,
Russell Investments Financial Services, LLC	Morgan Stanley Investment Management Limited, New
1301 Second Avenue	York, NY and Morgan Stanley Investment Management
Seattle, WA 98101	Company, New York, NY
	RREEF America L. L. C. , Chicago, IL, Deutsche Alternatives
	Asset Management (Global) Limited operating under the
	brand name Deutsch Asset Management London, United
	Kingdom

This report is prepared from the books and records of the Funds and is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless accompanied or preceded by an effective Prospectus. Nothing herein contained
is to be considered an offer of sale or a solicitation of an offer to buy shares of Russell Investment Funds. Such offering is made only by
Prospectus, which includes details as to offering price and other material information.

184 Adviser, Money Managers and Service Providers

Russell Investment Funds

Russell Investment Funds is
a series investment company
with nine different investment
portfolios referred to as Funds.
These financial statements report
on four of these Funds.

Russell Investment Funds

LifePoints^® Funds

Variable Target Portfolio Series

Annual Report

December 31, 2017

Table of Contents
Page
To Our Shareholders	3
Market Summary	4
Moderate Strategy Fund	9
Balanced Strategy Fund	28
Growth Strategy Fund	48
Equity Growth Strategy Fund	68
Notes to Schedule of Investments	88
Notes to Financial Highlights	90
Notes to Financial Statements	91
Report of Independent Registered Public Accounting Firm	104
Tax Information	105
Shareholder Requests for Additional Information	106
Disclosure of Information about Fund Trustees and Officers	107
Adviser and Service Providers	112

Russell Investment Funds - LifePoints^® Funds Variable Target Portfolio Series

Copyright © Russell Investments 2018. All rights reserved.

Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates with
minority stakes held by funds managed by Reverence Capital Partners and Russell Investments’ management.

Frank Russell Company is the owner of the Russell trademark contained in this material and all trademark rights
related to the Russell trademarks, which the members of the Russell Investment group of companies are permitted
to use under license from Frank Russell Company. The members of the Russell Investments group of companies
are not affiliated in any manner with Frank Russell Company or any entity operation under the “FTSE RUSSELL”
brand.

Fund objectives, risks, charges and expenses should be carefully considered before in-
vesting. A prospectus containing this and other important information must precede or
accompany this material. Please read the prospectus carefully before investing.

Securities distributed through Russell Investments Financial Services, LLC, member FINRA and part
of Russell Investments.

Indices and benchmarks are unmanaged and cannot be invested in directly. Returns represent past performance,
are not a guarantee of future performance, and are not indicative of any specific investment. Index return
information is provided by vendors and although deemed reliable, is not guaranteed by Russell Investments or its
affiliates.

Performance quoted represents past performance and does not guarantee future results. The investment return and
principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. Current performance may be lower or higher than the performance data quoted.

To Our Shareholders

Fellow Investors,

Being an investor isn’t always easy. A long-term view, consistency and commitment can be vitally important to wealth
creation. Daily headlines and speculation move markets on a short-term basis. While seemingly amplified today, this
type of noise has been, and always will be, present. Consequently, it remains critical to have a thoughtful financial plan,
realistic goals and timelines, and regular check-ins with your financial advisor.

That said, the past 12 months ending December 31, 2017 have arguably been a relatively tame period in which to be a
patient and resolute investor. We don’t get to say that often so please consider some of these facts:

• All major asset classes were positive from January 1, 2017 to December 31, 2017. Global equity markets were up
double digits, fixed income shareholders were rewarded with price appreciation across the spectrum, and diversifying
real assets contributed, too.

• Volatility, as measured by the CBOE VIX, has been very low relative to historical averages. The calendar year-to-
date as of December 31 has seen the fewest number of 1% daily moves in the S&P500^® Index in 30 years.

• Global growth has been steady.

At Russell Investments, we expect a return of market volatility to levels more consistent with historical norms. After all,
the current U.S. stock market rally became the second longest and third strongest on record since 1936 on December 31,
2017. This has led U.S. stocks to become more fully valued. The Cyclically Adjusted Price to Earnings Ratio (CAPE)
stood at 33.2 as of December 2017, putting the U.S. stock market among the most expensive markets since this data
started being tracked in 1926. As the saying goes, “History doesn’t repeat itself, but often it does rhyme.” In past
periods of expensive U.S. equity markets, prices had very little upward potential left—low single digit returns. The
Federal Reserve has begun the process of raising interest rates and unwinding its balance sheet—reversing the years of
accommodative monetary policy instituted in response to the Global Financial Crisis. Even though fixed income markets
have remained resilient so far, the simple math of fixed income suggests that bond prices will come under pressure as
yields continue to rise.

Of course, it’s important to remember that markets and geopolitical events will test investors’ resolve every single year.
The past 12 months’ uncertainty surrounding important elections in France, the United Kingdom, South Korea, and
mounting geopolitical tensions between North Korea and the U.S. were no exception. Exceptional investors, however, are
those who look past the short-term uncertainties and have the commitment to stick with their long-term plan.

In this type of environment, we believe that investors who work with a trusted financial advisor to develop—and stick
with—a financial plan, realistic goals and timelines, will be most resilient. In addition, although diversification can’t
guarantee a profit or avoid losses, experience suggests that globally-diversified multi-asset portfolios further help
investors stay the course when markets get choppy. The following pages provide additional insights on the markets and
the performance of Russell Investments Funds (RIF) for the fiscal year ending December 31, 2017.

Russell Investments has an extensive, proud heritage of providing multi-asset solutions to help investors like you reach
your financial goals, whether you’re saving for retirement, already there or building a college fund. Thank you for the trust
you have placed in our firm. All of us at Russell Investments appreciate the opportunity to help you achieve financial
security.

President and Chief Executive Officer, Russell Investment Funds

¹ Represented by Russell 1000^® Index up 21.69%, MSCI EAFE Index up 25.03%, MSCI Emerging Markets Index up 37.28% (as of 12/31/2017)

² Represented by Bloomberg Barclays U.S. Aggregate Bond Index up 3.54%, ICE BofA Merill Lynch Global High Yield Index up 10.20%, Bloomberg
Barclays 1-10 Year Municipal Blend Index up 3.49% (as of 12/31/2017)

³ Represented by Bloomberg Commodity Index up 1.70%, S&P Global Infrastructure Index up 19.07%, FTSE EPRA/NAREIT Developed Index up
10.36%(as of 12/31/2017)

To Our Shareholders 3

Russell Investment Funds

Market Summary as of December 31, 2017 (Unaudited)

U.S. Equity Markets
Broadly measured by the Russell 3000^® Index, U.S. stocks returned 21.13% for the one-year period, which is the ninth
straight fiscal year ending December 31st that the Russell 3000^® Index has finished with a positive absolute return. The
Russell 3000^® Index finished with a positive absolute return in each of the fiscal year’s twelve months.

Within U.S. large capitalization stocks, factors that were rewarded during the fiscal year included high beta (beta is a
measure of a stock’s sensitivity to the direction of the market), high historical earnings growth, and the largest capitalization
stocks. Factors that trailed the market included high dividend yield, low price-to-book ratios, and high earnings variability.
Additionally, dynamic stocks outperformed defensive stocks and growth stocks outperformed value stocks across all
market capitalization tiers excluding mid cap. From a sector perspective, information technology, materials, and consumer
discretionary outperformed the Russell 1000^® Index by 16.83%, 2.02%, and 1.69%, respectively. Sectors that failed to find
traction during the one-year period were energy, telecommunication services, and real estate, trailing by 23.25%, 23.20%,
and 11.76%, respectively.

The U.S. large cap equity market started off 2017 very strong with the Russell 3000^® Index gaining 5.74% from January
through March. The Fed raised its benchmark interest rate by another 25 basis points in March on the back of positive
economic data. However, the interest rate hike was accompanied by dovish language from the Fed which put into question
how many additional rate hikes there might be in 2017. Additionally, the post-Trump risk rally lost some steam in the
latter stages of the period after the new health care bill failed to repeal and replace Obama Care. Retail sales slowed down
in February, however inflation ticked upward to 2.7% year-over-year. In addition, the February non-farm payrolls figure
beat expectations yet again and pushed the unemployment rate down to 4.7%. The U.S. GDP growth rate was also revised
slightly higher to 2.1% for the fourth quarter of 2016.

The Russell 3000^® Index increased 3.02% from April through June. While U.S. economic data came in slightly softer
than expected over the period, it was enough for the Fed to raise its short-term interest rate in June. Over the period,
oil prices trended lower and the U.S. dollar was weak compared to most major currencies. Retail sales slowed down in
May, while inflation also slipped lower to 1.9%, moderately under the Fed’s 2.0% target rate. Meanwhile, May non-farm
payrolls grew less then consensus and the unemployment rate fell to 4.3%. Additionally, the U.S. economy expanded faster
than  initially  reported during the first quarter (1.4% quarter-over-quarter), following an upward revision to secondary
estimates of 1.2%. The Fed raised short-term interest rates by a further 25 basis points to 1.25% as widely expected
and maintained its forecast for one more rate hike in 2017. Fed Chair Janet Yellen also added that the bank would start
unwinding its $4.5 trillion balance sheet later in the year by reducing reinvestment of maturing bonds.

The Russell 3000^® Index climbed 4.57% from July through September. U.S. political uncertainty, escalating geopolitical
tension in the Korean peninsula and tropical hurricanes rattled investors. However, a strengthening economic backdrop
influenced a risk-on market environment which also contributed to the Fed developing a slightly more hawkish outlook.
Over the period, commodity prices stabilized while a sluggish U.S. dollar lifted a basket of global currencies. In the U.S.,
the latest non-farm payrolls figure continued to point towards a healthy jobs market, although the unemployment rate
ticked higher to 4.4%. Retail sales slowed to 3.2% year-over-year, but inflation edged higher to 1.9% year-over-year, still
under the Fed’s 2.0% target rate. However, the second quarter U.S. economic growth rate was finalized at a strong 3.1%
quarter-over-quarter. Toward the end of the quarter, initial details were released on a potential tax reform plan which was
viewed favorably by market participants.

The Russell 3000^® Index continued its upward trend ending the October through December time period up 6.34%.
Investors gravitated toward larger market capitalization growth stocks which outpaced most other groups as the third
quarter reporting season surprised to the upside in terms of earnings growth, sales growth, and profit margins. In the
beginning of December, the Fed raised short-term interest rates by a further 25 basis points to 1.50% as widely expected
and maintained its forecast of three additional rate hikes in 2018. Toward the end of the December, the approval of the
much-anticipated tax package also added to the positive sentiment within equity markets. Additionally, incentives to

4 Market Summary

Russell Investment Funds

Market Summary as of December 31, 2017, continued — (Unaudited)

invest and repatriate overseas profits included in the broader tax legislation were viewed as allowing U.S. companies to
more easily pursue growth strategies.

Non-U.S. Developed Equity Markets
For the fiscal year ended December 31, 2017, developed non-U.S. equity markets, as measured by the Russell Developed
ex-U.S. Large Cap^® Index (the “Index”), were up 25.46%. Key drivers of market performance were the U.S. presidential
election, improving global growth, especially in emerging markets and the Eurozone, increases in government bond yields
and the Trump administration’s tax reform bill.

Amid the improving global growth outlook, momentum, growth and quality factors had the strongest outperformance during
the fiscal year followed by a modest outperformance of value factor as investors chased cheaper, cyclical stocks and stocks
with high earnings expectations. Sectors with high growth expectations such as technology, industrials and materials were
rewarded during the period while the more defensive sectors such as consumer staples, utilities and health care suffered.
Energy stocks also underperformed as commodity prices continued to face pressure from excess supply.

In the first quarter of the fiscal year, the Fed met expectations and raised its benchmark rate by another 25 basis points in
light of further positive economic data, following a similar rate increase in December 2016. Additionally, a post-Trump risk
rally lost some steam in the latter stages of the period, after President Trump lost support from his own Republican party for
his health care bill. In Europe, UK Prime Minister Theresa May triggered Article 50 to officially start “Brexit” negotiations,
while investors held caution over electoral developments in the Netherlands, France and Germany. Over the period, oil
prices trended lower while a weaker U.S. dollar lifted emerging market currencies. While markets ground higher during
this period, investor sentiment became more cautionary, avoiding areas like energy and materials.

In the second quarter of the fiscal year, U.S. economic data came in slightly softer than expected. However, it was enough
for the Fed to raise its benchmark rate for the second time in 2017. In Europe, Emmanuel Macron became France’s new
President while the general election in the UK resulted in a challenging “hung Parliament”. Over the period, oil prices
continued their trend lower along with a weakening U.S. dollar against a basket of currencies. The easing political tension
in Europe rewarded the value factor and financial companies in particular.

In the third quarter of the fiscal year, U.S. federal political dysfunction, escalating geopolitical tension in the Korean
peninsula and tropical hurricanes rattled investors. However, a strengthening economic backdrop engendered a risk-on
market environment, and informed developed central banks who became more comfortable with a more hawkish outlook.
Over the period, commodity prices stabilized, rewarding energy stocks. The technology sector continued a strong run as
evidence of disruption in traditional sectors such as retail drove investor sentiment.

In the fourth quarter of the fiscal year, U.S. President Donald Trump experienced his first major legislative victory with
a tax reform deal. Furthermore, strong economic growth in the third quarter paved the way for the Fed to raise its key
interest rate for a third time in December from 1.25% to 1.50%. A combination of strong economic growth and positive
expectations from tax reform led the U.S. markets higher during the quarter. Across the Atlantic, British Prime Minister
Theresa May struck a last-minute deal with the EU to move Brexit talks forward and in November the Bank of England
also raised interest rates for the first time in a decade whilst inflation hit 3.1%. Europe ex-UK and the UK were the biggest
underperformers during the quarter.

Emerging markets and Asia ex-Japan were the stand out non-U.S. markets over the fiscal year, as improving economic
fundamentals along with a weaker U.S. dollar were tailwinds. Conversely, the UK, Europe ex-UK and Canada were the
biggest laggards.

Market Summary 5

Russell Investment Funds

Market Summary as of December 31, 2017, continued — (Unaudited)

Emerging Markets
The Russell Emerging Markets^® Index, as measured in U.S. dollar terms (the “Index”), gained 36.3% over the fiscal year
ended December 31, 2017. The asset class remained buoyant in a period where global growth forecasts were upgraded and
inflation remained low. Many emerging countries started to see green shoots as they rebounded from their cyclical lows,
benefiting from lower interest rates and improving economic growth. The U.S. dollar weakened against most emerging
market currencies, despite increasing U.S. interest rates. The U.S. Federal Reserve’s approach was more dovish than
expected by the market which benefited emerging market currencies.

The Index surged 11.7% in the first quarter of 2017, outperforming developed markets as investor appetite for perceived
riskier investments returned. India (19.3%) was the strongest-performing country as Prime Minister Modi’s Party won
key state elections, with the victories demonstrating strong domestic support for Modi’s free-market reform programs.
Mexico (16.4%) rebounded where the peso was among the best-performing currencies against the U.S. dollar as the Trump
administration softened its rhetoric towards the country. South Africa (4.4%) underperformed as speculation surrounding
the independence of the Treasury following the removal of respected finance minister Pravin Gordhan and replacement of
nine other cabinet ministers by President Zuma weighed on sentiment and the value of the rand. After its 2016 rally, Russia
(-2.5%) returned some of its strong performance as hopes of potentially warmer relations and easing of sanctions with the
U.S. following Trump’s election victory partially dissipated.

The Index continued its 2017 rally in the second quarter with a 5.6% climb as sentiment towards the asset class remained
buoyant. A weaker U.S. dollar was a further tailwind, although it was another negative and volatile period for the price
of oil. Emerging Europe (ex-Russia) was the best performing region in emerging markets, following the market-friendly
French Presidential election result. This included Hungary (18.9%), Poland (13.5%) and the Czech Republic (13.1%).
Greece was the strongest-performing country after a 31.9% surge. This came as a deal with its creditors on economic
reforms was agreed after protracted negotiations, which enabled the release of the next bailout tranche. Asian countries
also outperformed over the period. Both India (3.3%) and South Africa (2.6%) lagged the overall benchmark return. In
India, first quarter GDP growth was the weakest in two years at 6.1% year-over-year, as the full impact of Prime Minister
Modi’s demonetisation policy began to come through. The government withdrew the 500 and 1000 rupee notes overnight to
crack down on the black market. South Africa underperformed in a period where President Zuma survived his ANC party
vote of no confidence. Natural resource and energy-driven markets were the weakest performing for the quarter as these
sectors underperformed the market, particularly Russia (-9.7%) and Brazil (-6.7%).

The Index increased 7.4% in the third quarter of 2017. Sentiment towards the asset class remained buoyant amid a tepid
global inflation environment. A weaker U.S. dollar and stable oil prices underpinned investor confidence. However, the
market edged lower in September amid a more hawkish outlook from the U.S. Federal Reserve and increased geopolitical
tensions within the Korean peninsula. Brazil (23.5%) rebounded from a weak second quarter driven by the improved
political environment where congress’ lower house voted down corruption charges against President Temer to keep him in
power. China (13.7%) outperformed, driven by Internet stocks, the strongest-performing sector. Russia climbed 15.5% in
a strong period for the energy sector. Elsewhere, Eastern European countries continued their healthy 2017 performance,
including the Czech Republic (11.3%), Hungary (9.7%) and Poland (8.8%) on robust macro numbers. South Korea (1.6%)
was hampered by heightened political tensions between North Korea and the U.S. Mexico (0.8%) underperformed as
NAFTA renegotiations remained strained. The country was also hit by a series of earthquakes which weighed on investor
confidence. Overall, Greece was the worst-performing country ahead of November’s bailout review with its creditors. The
market slipped 8.8% as banking stocks slumped on possible new European Central Bank and International Monetary Fund
stress tests.

The Index increased 7.7% in the final quarter of 2017. South Africa was the standout performer over the period, as
the market surged 21.4% in reaction to political developments. The South African rand strengthened over the period,
boosted by Moody’s maintaining the country’s Baa3 investment-grade rating. India also surged (13.8%) as the government

6 Market Summary

Russell Investment Funds

Market Summary as of December 31, 2017, continued — (Unaudited)

announced plans to inject $32 billion into state controlled banks. In Korea (13.1%), the government announced plans to
increase spending and raise the minimum wage, which helped to increase consumer confidence to its highest level since
2010. The market was further buoyed by news that South Korea and China agreed to normalize relations following an
earlier fallout over the installation of the U.S. anti-missile system in South Korea. Greece (10.6%) recovered from a weak
third quarter, as the government agreed to additional reforms in the latest bailout review with its creditors, which allowed
the release of the next tranche of funds. Mexico (-8.4%) was the worst-performing country, as it continued to suffer from
peso weakness driven by strained discussions on the future of the North American Free Trade Agreement. Brazil (-2.4%)
suffered from weakness in the real. Investors appeared disappointed that the much-anticipated pension reform bill was
watered down and delayed until February 2018.

U.S./Global Fixed Income Markets
The fiscal year ended December 31, 2017 was characterized by a risk on rally that saw both U.S. and European credit
spreads tighten, global growth improve and conducive monetary policies from central banks. Overall, this proved positive
for fixed income sectors around the globe. The U.S. yield curve saw interest rates rise for the fiscal year with the short end
of the curve rising 88 basis points on a 3-month treasury bill, while the 10-year treasury bond interest rate was flat. The
German Bund saw a parallel shift upwards in interest rates during 2017 and the British Gilt saw interest rates rise on the
short end of the curve and fall on the longer end. The U.S. experienced the largest interest rate moves as the U.S. Federal
Reserve (the “Fed”) raised interest rates three times during the year. Europe had historically low interest rates during the
fiscal year as the European Central Bank (“ECB”) kept rates low and continued with their quantitative easing program,
although it was cut in half to 30 billion euros per month in October. Corporate and high yield spreads grinded tighter on
the back of strong demand and the positive global growth backdrop. A key indicator of global fixed income performance,
the Bloomberg Barclays Global Aggregate Bond Index, returned 7.39% for the fiscal year, in U.S. dollar-hedged terms. The
index had a strong year due to increasing demand, monetary policy remaining accommodative, and the lack of geopolitical
fears being realized.

The Bloomberg Barclays Pan-European Aggregate Bond Index returned 14.21% during the period in U.S. dollar-hedged
terms, but most of that return was due to the euro appreciating 14.15% against the U.S. dollar. The U.S., in comparison,
returned 3.54% during the fiscal year as measured by the Bloomberg Barclays U.S. Aggregate Bond Index. In Europe,
treasuries underperformed the aggregate while financials in the corporate sector was a leading segment. In the U.S.,
the corporate market performed strongly led by lower quality bonds and strong demand from oversees. The U.S. dollar
depreciated against most European currencies, due to improving growth across Europe and the victory of political
candidates that support the European Union.

In the U.S., economic data remained broadly positive, with solid nonfarm payroll gains and a steady decline in the
unemployment rate to decade lows of 4.1%. Gross domestic product (“GDP”) growth had readings over 3.0% for both the
second and third quarter 2017, after it had dipped below 1.5% in the first quarter of 2017. The Consumer Price Index
(“CPI”) started the fiscal year strong at above 2.0% and was a contributing factor as the Fed raised rates, but as the CPI
fell during the year below the Fed’s long-term target of 2.0%, it becomes the Fed’s largest concern.

In Europe, the concerns about a “hard Brexit” diminished over the period, while most of Europe welcomed Emmanuel
Macron’s victory in the French presidential elections. The Bloomberg Barclays Euro Aggregate Corporate Index returned
3.5% over equivalent duration government bonds during the period as financials improved and GDP rose from 1.4% to
2.3% during the fiscal year. The European banking sector had a setback in 2nd quarter 2017 as three banks declared
bankruptcy.

Emerging markets were one of the strongest sectors in 2017 as the U.S. dollar depreciated, global growth was above-
trend and major central bank monetary policy settings were accommodative. Emerging market (“EM”) debt outperformed
developed markets (the Bloomberg Barclays EM Hard Currency Aggregate Bond Index returned 9.61%) as there was

Market Summary 7

Russell Investment Funds

Market Summary as of December 31, 2017, continued — (Unaudited)

high demand for yield. Local currency EM bonds (those issued in the issuing country’s own currency) were extremely
strong (the Bloomberg Barclays EM Local Currency Government Bond Index returned 14.27%) due to the depreciation of
the U.S. dollar versus a basket of emerging market currencies. The Czech koruna and Polish zloty both appreciated over
20% during the year as the koruna was unpegged from the euro and the zloty appreciated on the back of the strong Polish
economy and the appreciation in the euro.

Strong global corporate new issuance volumes continued in the fiscal year along with seemingly endless demand from
overseas buyers. Overall, corporate credit was up globally (the Bloomberg Barclays Global Aggregate Corporate Bond
Index returned 9.09%), with particularly strong performance out of the utilities sector of the market. The best performers
in the index were lower quality issues (BBB cohorts and below), longer maturities (7+ years) and higher beta countries
(Austria and Italy).

High yield corporate credit was among the best-performing segments of the global market (the Bloomberg Barclays Global
High Yield Bond Index returned 10.43%). High yield spreads tightened over the fiscal year due to the strong global
economy and investors searching for the slightest advantage in yields. The interest coverage ratio improved over the year
while the default rate for high yield securities fell, which were both positive factors.

8 Market Summary

Russell Investment Funds
Moderate Strategy Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

Moderate Strategy Fund			Bloomberg Barclays U. S. Aggregate Bond Index**
	Total			Total
	Return			Return
1 Year	9.88	%	1 Year		3.54	%
5 Years	5.44	%§	5 Years		2.10	%§
10 Years	4.81	%§	10 Years		4.01	%§
			Russell 1000® Index***
				Total
				Return
			1 Year	21.69		%
			5 Years	15.71		%§
			10 Years		8.59	%§

Moderate Strategy Fund 9

Russell Investment Funds
Moderate Strategy Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The Moderate Strategy Fund (the “Fund”) is a fund of funds that	Within equities, overall global equity markets posted very strong
invests principally in other Russell Investment Funds (“RIF”)	returns, as the Russell Developed Large Cap® Index (Net) gained
and Russell Investment Company (“RIC”) mutual funds (the	22.39%. Emerging markets were one of the top performing
“Underlying Funds”) . The Underlying Funds employ a multi-	segments of global equity markets over the period. The Fund’s
manager approach whereby portions of the Underlying Funds	strategic exposure to emerging markets proved beneficial over
are allocated to different money manager strategies. Underlying	the period as they rallied, boosted by lower interest rates and
Fund assets not allocated to money managers are managed by	improving economic growth. By contrast, non-U. S. developed
Russell Investment Management, LLC (“RIM”), the Fund’s	equities slightly lagged U. S. equities, as defensive and commodity
and Underlying Funds’ advisor. RIM, as the Underlying Funds’	sectors, especially consumer staples, health care and energy,
advisor, may change the allocation of the Underlying Funds’	weighed on non-U. S. equity returns.
assets among money managers at any time. An exemptive order
from the Securities and Exchange Commission (“SEC”) permits	How did the investment strategies and techniques employed
RIM to engage or terminate a money manager in an Underlying	by the Fund and the Underlying Funds affect the Fund’s
Fund at any time, subject to approval by the Underlying Fund’s	performance?
Board, without a shareholder vote. Pursuant to the terms of the	The Fund is a fund of funds and its performance is based on RIM’s
exemptive order, an Underlying Fund is required to notify its	strategic asset allocations, the performance of the Underlying
shareholders within 90 days of when a money manager begins	Funds in which the Fund invests, and tactical changes in the
providing services.	Fund’s asset allocation throughout the year. In order to seek to
	achieve the Fund’s objective during the period, RIM’s strategic
What is the Fund’s investment objective?	asset allocation included investments in global equity, fixed
The Fund seeks to provide current income and moderate long	income, multi-asset and alternative Underlying Funds.
term capital appreciation.	The Fund’s diverse asset allocation contributed positively to
How did the Fund perform relative to its benchmark for the	performance during the period. Non-traditional asset classes
fiscal year ended December 31, 2017?	such as high yield bonds returned 8.02%, as measured by the ICE
For the fiscal year ended December 31, 2017, the Fund gained	BofAML Global High Yield Index Hedged (USD), outperforming
9.88%. This is compared to the Fund’s primary benchmark, the	the Fund’s primary benchmark, the Bloomberg Barclays U. S.
Bloomberg Barclays U. S. Aggregate Bond Index, which gained	Aggregate Bond Index. Non-U. S. developed equities and
3.54% during the same period. The Fund’s performance includes	commodities delivered positive returns as well, as measured
operating expenses, whereas index returns are unmanaged and do	by the Russell Developed ex-U. S. Large Cap® Index Net and
not include expenses of any kind.	Bloomberg Commodity Index Total Return, respectively.
For the fiscal year ended December 31, 2017, the Morningstar®	The fixed income portion of the Fund’s portfolio outperformed
Insurance Allocation – 30% to 50% Equity Category, a group of	the Fund’s fixed income benchmark. An allocation to the RIF
funds that Morningstar considers to have investment strategies	Strategic Bond Fund was positive from a benchmark-relative
similar to those of the Fund, gained 9.62%. This result serves as	perspective as a result of its exposure to high yield corporate debt
a peer comparison and is expressed net of operating expenses.	and non-agency mortgage backed securities. The excess returns
	were partially offset by the RIC Investment Grade Bond Fund
How did the market conditions described in the Market	as a result of its allocation to currencies and global government
Summary report affect the Fund’s performance?	bond futures.
The Fund seeks to achieve its objective by investing in Underlying	Due to the strong performance of equity markets over the
Funds that provide exposure to a range of diversified investments,	period, the equity portion of the Fund’s portfolio contributed to
and most major asset classes invested in by the Underlying Funds	excess returns. The RIC Global Equity Fund outperformed its
produced positive absolute returns during the period.	global equity benchmark, supported by strategic and tactical
Within the Fund’s fixed income portfolio, exposure to high yield	overweights to growth. By contrast, the RIC U. S. Defensive
debt was beneficial as it was among the best-performing segments	Equity Fund underperformed its benchmark as stock selection
of the fixed income market over the one-year period. Rising	detracted, especially within the consumer staples and consumer
interest rates posed a challenge to other fixed income assets, as	discretionary sectors.
well as more interest rate sensitive real assets such as global real	The alternative assets portion of the Fund’s portfolio positively
estate investment trusts (“REITs”) and global infrastructure.	contributed to absolute returns, though the rising rate environment
	over the one-year period, that picked up towards end of third

10 Moderate Strategy Fund

Russell Investment Funds
Moderate Strategy Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

quarter 2017, created headwinds for rate-sensitive asset classes	Fund. During third quarter 2017, RIM moved to an underweight
such as listed REITs and listed infrastructure.	position in the RIC Global Infrastructure Fund as rising interest
	rates and higher valuations became more of a concern for the
Describe any changes to the Fund’s structure or allocation	rate-sensitive sector. RIM maintained an underweight to the
to the Underlying Funds.	RIF Global Real Estate Securities Fund over the period due to
RIM has the discretion to vary the Fund’s actual allocation from	its rate-sensitive nature. During the fourth quarter of 2017, RIM
the target strategic asset allocation by up to +/- 5% at the equity,	moved to further underweight listed infrastructure by trimming
fixed income, multi-asset or alternative category level based on	the Fund’s exposure to the RIC Global Infrastructure Fund due to
RIM’s capital markets research. In addition to investing in the	its relatively expensive valuation. RIM also slightly trimmed the
Underlying Funds, RIM may seek to actively manage a Fund’s	underweight to REITs through increasing the Fund’s exposure to
overall exposures by investing in derivatives that RIM believes	the RIF Global Real Estate Securities Fund. RIM’s modifications
will achieve the desired risk/return profile for the Fund. RIM’s	to the Fund’s asset allocation were additive during the period.
asset allocation modifications, implemented through both tactical
changes to Underlying Fund allocations and derivatives-based	The views expressed in this report reflect those of the
exposures, benefited the Fund’s performance relative to the	portfolio managers only through the end of the period
Fund’s target strategic asset allocation.	covered by the report. These views do not necessarily
RIM tactically adapted the Fund’s asset allocation over the period	represent the views of RIM, or any other person in RIM or
as market opportunities and risks evolved. RIM continued to	any other affiliated organization. These views are subject to
operate the Fund as a risk manager rather than risk taker. The Fund	change at any time based upon market conditions or other
maintained an underweight position in U. S. equity by trimming its	events, and RIM disclaims any responsibility to update the
exposure to the RIC U. S. Defensive Equity Fund relative to RIM’s	views contained herein. These views should not be relied
long-term strategic weights. During the first quarter of 2017, as	on as investment advice and, because investment decisions
equity markets ran upwards and credit spreads compressed, RIM	for a Russell Investment Funds (“RIF”) Fund are based on
trimmed high yield exposure to an underweight for the first time	numerous factors, should not be relied on as an indication
since 2015 by underweighting the RIC Global Opportunistic Credit	of investment decisions of any RIF Fund.

* Assumes initial investment on January 1, 2008.

** The Bloomberg Barclays U.S. Aggregate Bond Index is an index, with income reinvested, generally representative of intermediate-term government bonds,
investment grade corporate debt securities and mortgage-backed securities.

*** The Russell 1000^® Index includes the 1,000 largest companies in the Russell 3000^® Index. The Russell 1000^® Index represents the universe of stocks from
which most active money managers typically select. The Russell 1000^® Index return reflects adjustments from income dividends and capital gain distributions
reinvested as of the ex-dividend dates.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

Moderate Strategy Fund 11

Russell Investment Funds
Moderate Strategy Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this
administrative fees and other Fund expenses. The Example is	section do not reflect any Insurance Company Separate Account
intended to help you understand your ongoing costs (in dollars)	Policy Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017.	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,039.30	$	1,024.50
The information in the table under the heading “Actual	Expenses Paid During Period*	$	0.72	$	0.71
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 0.14%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) . May reflect amounts waived and/or reimbursed. Without any
$1,000 (for example, an $8,600 account value divided by $1,000	waivers and/or reimbursements, expenses would have been higher.
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

12 Moderate Strategy Fund

Russell Investment Funds
Moderate Strategy Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)
				Fair
				Value
	Shares			$
Investments in Affiliated Funds - 97.4%
Alternative - 6.1%
RIC Commodity Strategies Fund Class Y		613,872		3,517
RIC Global Infrastructure Fund Class Y		288,888		3,308
RIF Global Real Estate Securities Fund		10,610		157
				6,982
Domestic Equities - 9.4%
RIC U. S. Defensive Equity Fund Class Y		1,300		67
RIC U. S. Dynamic Equity Fund Class Y		27,978		256
RIF U. S. Small Cap Equity Fund		525,606		8,620
RIF U. S. Strategic Equity Fund		97,957		1,815
				10,758
Fixed Income - 51.0%
RIC Global Opportunistic Credit Fund Class Y		1,431,681		14,102
RIC Investment Grade Bond Fund Class Y		649,315		13,856
RIC Unconstrained Total Return Fund Class Y		574,128		5,690
RIF Strategic Bond Fund		2,412,734		25,021
				58,669
International Equities - 19.0%
RIC Emerging Markets Fund Class Y		348,667		7,378
RIC Global Equity Fund Class Y		714,991		7,721
RIF International Developed Markets Fund		513,766		6,741
				21,840
Multi-Asset - 11.9%
RIC Multi-Strategy Income Fund Class Y		1,340,507		13,646
Total Investments in Affiliated Funds
(cost $103,475)				111,895
Options Purchased - 0.4%
(Number of Contracts)
S&P 500 Index
Goldman Sachs May 2018 2,675.00 Call (61)	USD	16,318	(ÿ)	477
Total Options Purchased
(cost $403)				477
Total Investments 97.8%
(identified cost $103,878)				112,372
Other Assets and Liabilities, Net - 2.2%				2,534
Net Assets - 100.0%				114,906

See accompanying notes which are an integral part of the financial statements.

Moderate Strategy Fund 13

Russell Investment Funds
Moderate Strategy Fund

Schedule of Investments, continued — December 31, 2017

Futures Contracts
Amounts in thousands (except contract amounts)
							Value and
							Unrealized
							Appreciation
		Number of		Notional		Expiration	(Depreciation)
		Contracts		Amount		Date	$
Long Positions
Amsterdam Index Futures			6	EUR	653	01/18	(9	)
CAC 40 Euro Index Futures			29	EUR	1,540	01/18	(28	)
DAX Index Futures			5	EUR	1,614	03/18	(35	)
EURO STOXX 50 Index Futures			27	EUR	943	03/18	(27	)
FTSE/MIB Index Futures			4	EUR	435	03/18	(22	)
IBEX 35 Index Futures			5	EUR	501	01/18	(13	)
MSCI EAFE Index Futures			13	USD	1,330	03/18	28
OMXS30 Index Futures			23	SEK	3,621	01/18	(12	)
Russell 1000 E-Mini Index Futures			1	USD	74	03/18	1
S&P 500 E-Mini Index Futures			19	USD	2,542	03/18	25
Short Positions
Dow U. S. Real Estate Index Futures			43	USD	1,382	03/18	(3	)
FTSE 100 Index Futures			6	GBP	458	03/18	(17	)
Russell 2000 E-Mini Index Futures			54	USD	4,149	03/18	(43	)
S&P 500 E-Mini Index Futures			31	USD	4,148	03/18	(36	)
S&P/TSX 60 Index Futures			2	CAD	383	03/18	(1	)
SPI 200 Index Futures			1	AUD	151	03/18	—
TOPIX Index Futures			1	JPY	18,170	03/18	(3	)
United States 2 Year Treasury Note Futures			8	USD	1,713	03/18	3
United States 5 Year Treasury Note Futures			25	USD	2,904	03/18	13
United States 10 Year Treasury Note Futures			16	USD	1,985	03/18	12
United States Long Bond Futures			2	USD	306	03/18	—
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)							(167	)
Foreign Currency Exchange Contracts
Amounts in thousands
							Unrealized
							Appreciation
	Amount			Amount			(Depreciation)
Counterparty	Sold			Bought		Settlement Date	$
Bank of America	USD	384		CAD	494	03/22/18	9
Bank of America	USD	30	MXN		575	03/22/18	(1	)
Bank of America	AUD	430		USD	323	03/22/18	(12	)
Bank of America	CHF	118		USD	120	03/22/18	(2	)
Bank of America	EUR	676		USD	802	03/22/18	(13	)
Bank of America	GBP	241		USD	324	03/22/18	(2	)
Bank of America	HKD	415		USD	53	03/22/18	—
Bank of America	JPY	11,967		USD	107	03/22/18	—
Bank of America	SEK	432		USD	51	03/22/18	(2	)
Bank of America	SGD	26		USD	19	03/22/18	—
Bank of America	ZAR	250		USD	18	03/22/18	(2	)
Commonwealth Bank of Australia	USD	385		CAD	494	03/22/18	8
Commonwealth Bank of Australia	USD	30	MXN		575	03/22/18	(1	)
Commonwealth Bank of Australia	AUD	430		USD	323	03/22/18	(12	)
Commonwealth Bank of Australia	CHF	118		USD	120	03/22/18	(2	)
Commonwealth Bank of Australia	EUR	676		USD	803	03/22/18	(12	)
Commonwealth Bank of Australia	GBP	241		USD	323	03/22/18	(2	)
Commonwealth Bank of Australia	HKD	415		USD	53	03/22/18	—
Commonwealth Bank of Australia	JPY	11,967		USD	107	03/22/18	—
Commonwealth Bank of Australia	SEK	432		USD	51	03/22/18	(1	)

See accompanying notes which are an integral part of the financial statements.

14 Moderate Strategy Fund

Russell Investment Funds
Moderate Strategy Fund

Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in thousands
										Unrealized
										Appreciation
				Amount		Amount				(Depreciation)
Counterparty				Sold		Bought	Settlement Date			$
Commonwealth Bank of Australia			SGD	26	USD	19	03/22/18			—
Commonwealth Bank of Australia			ZAR	250	USD	18	03/22/18			(2	)
State Street			USD	457	CNY	3,040	03/22/18			7
State Street			USD	22	RUB	1,340	03/22/18			1
State Street			CNY	2,030	USD	304	03/22/18			(6	)
State Street			INR	8,140	USD	125	03/22/18			(2	)
State Street		KRW		349,910	USD	321	03/22/18			(7	)
State Street		TWD		9,520	USD	319	03/22/18			(5	)
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts										(61	)
Total Return Swap Contracts
Amounts in thousands
							Premiums	Unrealized
							Paid	Appreciation
		Notional				Termination	(Received)	(Depreciation)		Fair Value
Underlying Reference Entity	Counterparty	Amount		Terms		Date	$	$		$
Short
S&P 500 Total Return Index	Goldman Sachs	USD        10,700		3 Month LIBOR + 0.700%(5)		03/16/18	—	(14	)	(14	)
Total Open Total Return Swap Contracts (å)							—	(14	)	(14	)

Credit Default Swap Contracts
Amounts in thousands
Credit Indices
											Premiums	Unrealized
								Fund (Pays)/			Paid/	Appreciation
			Purchase/Sell					Receives		Termination	(Received)		(Depreciation)		Fair Value
Reference Entity	Counterparty		Protection			Notional Amount		Fixed Rate		Date	$	$			$
CDX Emerging Markets
Index	Bank of America		Purchase			USD	4,268	(1.000%)(2)		12/20/22	179		(143	)	36
CDX Investment Grade
Index	Bank of America		Sell			USD	1,100	1.000%(2)		12/20/22	22		4		26
CDX NA High Yield Index Bank of America			Sell			USD	2,400	5.000%(2)		12/20/22	181		18		199
Total Open Credit Indices Contracts (å)											382		(121	)	261
Presentation of Portfolio Holdings
Amounts in thousands
						Fair Value
										Practical
Portfolio Summary			Level 1		Level 2		Level 3		Expedient (a)		Total		% of Net Assets
Investments in Affiliated Funds		$	111,895	$		—	$	—	$	—	$	111,895			97.4
Options Purchased			477			—		—		—		477			0.4
Total Investments			112,372			—		—		—		112,372			97.8
Other Assets and Liabilities, Net															2.2
															100.0

See accompanying notes which are an integral part of the financial statements.

Moderate Strategy Fund 15

Russell Investment Funds
Moderate Strategy Fund

Schedule of Investments, continued — December 31, 2017

Presentation of Portfolio Holdings
Amounts in thousands
						Fair Value
												Practical
Portfolio Summary		Level 1			Level 2				Level 3		Expedient (a)			Total			% of Net Assets
Other Financial Instruments
Assets
Futures Contracts		82				—				—		—			82			0.1
Foreign Currency Exchange Contracts		—				25				—		—			25			— *
Credit Default Swap Contracts		—				261				—		—			261			0.2
Liabilities
Futures Contracts		(249	)			—				—		—			(249	)		(0.2	)
Foreign Currency Exchange Contracts		—				(86	)			—		—			(86	)		(0.1	)
Total Return Swap Contracts		—				(14	)			—		—			(14	)		(—)*
Total Other Financial Instruments**	$	(167	)	$		186		$		—	$	—	$		19

* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.

See accompanying notes which are an integral part of the financial statements.

16 Moderate Strategy Fund

Russell Investment Funds
Moderate Strategy Fund

Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

							Foreign
	Equity			Credit			Currency			Interest Rate
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts			Contracts
Location: Statement of Assets and Liabilities - Assets
Investments, at fair value*	$	477		$	—		$	—		$	—
Unrealized appreciation on foreign currency exchange contracts		—			—			25			—
Variation margin on futures contracts**		54			—			—			28
Credit default swap contracts, at fair value		—			261			—			—
Total	$	531		$	261		$	25		$	28
Location: Statement of Assets and Liabilities - Liabilities
Variation margin on futures contracts**	$	249		$	—		$	—		$	—
Unrealized depreciation on foreign currency exchange contracts		—			—			86			—
Total return swap contracts, at fair value		14			—			—			—
Total	$	263		$	—		$	86		$	—
							Foreign
	Equity			Credit			Currency			Interest Rate
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts			Contracts
Location: Statement of Operations - Net realized gain (loss)
Investments***	$	586		$	—		$	—		$	—
Futures contracts		(446	)		—			—			(8	)
Options written		105			—			—			—
Total return swap contracts		(1,106	)		—			—			—
Credit default swap contracts		—			138			—			—
Foreign currency exchange contracts		—			—			(84	)		—
Total	$	(861	)	$	138		$	(84	)	$	(8	)
Location: Statement of Operations - Net change in unrealized appreciation
(depreciation)
Investments****	$	170		$	—		$	—		$	—
Futures contracts		(275	)		—			—			11
Options written		(23	)		—			—			—
Total return swap contracts		45			—			—			—
Credit default swap contracts		—			(180	)		—			—
Foreign currency exchange contracts		—			—			(141	)		—
Total	$	(83	)	$	(180	)	$	(141	)	$	11

* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Includes net change in unrealized appreciation/depreciation on purchased options as reported in the Schedule of Investments.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

Moderate Strategy Fund 17

Russell Investment Funds
Moderate Strategy Fund

Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Assets and Derivative Assets
					Gross			Net Amounts
					Amounts				of Assets
			Gross		Offset in the			Presented in
		Amounts of			Statement of			the Statement
		Recognized			Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Assets		Assets		Liabilities				Liabilities
Options Purchased Contracts	Investments, at fair value	$		477		$	—    $		477
Foreign Currency Exchange Contracts	Unrealized appreciation on foreign currency exchange contracts			25			—		25
Futures Contracts	Variation margin on futures contracts			54			—		54
Credit Default Swap Contracts	Credit default swap contracts, at fair value			261			—		261
Total Financial and Derivative Assets				817			—		817
Financial and Derivative Assets not subject to a netting agreement			(792		)		—		(792	)
Total Financial and Derivative Assets subject to a netting agreement		$		25		$	—    $		25
word

Financial Assets, Derivative Assets, and Collateral Held by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Assets
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty	Liabilities		Instruments			Received^		Net Amount
Bank of America	$	9		$	9	$	—	$	—
Commonwealth Bank of Australia		8			8		—		—
State Street		8			8		—		—
Total	$	25		$	25	$	—	$	—

See accompanying notes which are an integral part of the financial statements.

18 Moderate Strategy Fund

Russell Investment Funds
Moderate Strategy Fund

Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
December 31, 2017

Amounts in thousands
Offsetting of Financial Liabilities and Derivative Liabilities
				Gross			Net Amounts
				Amounts			of Liabilities
		Gross		Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Liabilities	Liabilities		Liabilities				Liabilities
Futures Contracts	Variation margin on futures contracts	$	62		$	—     $		62
Foreign Currency Exchange Contracts	Unrealized depreciation on foreign currency exchange contracts		86			—		86
Total Return Swap Contracts	Total return swap contracts, at fair value		14			—		14
Total Financial and Derivative Liabilities			162			—		162
Financial and Derivative Liabilities not subject to a netting agreement			(62	)		—		(62	)
Total Financial and Derivative Liabilities subject to a netting agreement		$	100		$	—     $		100

Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Liabilities
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty		Liabilities	Instruments			Pledged^		Net Amount
Bank of America	$	33		$	9	$	—	$	24
Commonwealth Bank of Australia		33			8		—		25
Goldman Sachs		14			—		—		14
State Street		20			8		—		12
Total	$	100		$	25	$	—	$	75

^      Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

Moderate Strategy Fund 19

Russell Investment Funds
Moderate Strategy Fund

Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	103,878
Investments, at fair value(>)		112,372
Cash		663
Cash (restricted)(a)(b)(c)		1,739
Unrealized appreciation on foreign currency exchange contracts		25
Receivables:
Investments sold		8
From affiliates		4
Variation margin on futures contracts		54
Credit default swap contracts, at fair value(+)		261
Total assets		115,126
Liabilities
Payables:
Fund shares redeemed		7
Accrued fees to affiliates		5
Other accrued expenses		46
Variation margin on futures contracts		62
Unrealized depreciation on foreign currency exchange contracts		86
Total return swap contracts, at fair value(8)		14
Total liabilities		220
Net Assets	$	114,906

See accompanying notes which are an integral part of the financial statements.

20 Moderate Strategy Fund

Russell Investment Funds
Moderate Strategy Fund

Statement of Assets and Liabilities, continued — December 31, 2017

Amounts in thousands
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	415
Accumulated net realized gain (loss)		(532	)
Unrealized appreciation (depreciation) on:
Investments		74
Investments in affiliated funds		8,420
Futures contracts		(167	)
Foreign currency exchange contracts		(61	)
Total return swap contracts		(14	)
Credit default swap contracts		(121	)
Shares of beneficial interest		112
Additional paid-in capital		106,780
Net Assets	$	114,906
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	10.29
Net assets	$	114,906,230
Shares outstanding ($. 01 par value)		11,169,650
Amounts in thousands
(+)     Credit default swap contracts - premiums paid (received)	$	382
(8)     Total return swap contracts - premiums paid (received)	$	—
(>)     Investments in affiliated funds	$	111,895
(a)     Cash Collateral for Futures	$	1,450
(b)      Cash Collateral for Swaps	$	35
(c)      Cash Collateral for Options	$	254
(#) Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

Moderate Strategy Fund 21

Russell Investment Funds
Moderate Strategy Fund

Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Income distributions from affiliated funds	$	2,975
Expenses
Advisory fees		220
Administrative fees		47
Custodian fees		35
Transfer agent fees		5
Professional fees		42
Trustees’ fees		3
Printing fees		28
Miscellaneous		10
Expenses before reductions		390
Expense reductions		(246	)
Net expenses		144
Net investment income (loss)		2,831
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		586
Investments in affiliated funds		1,100
Futures contracts		(454	)
Options written		105
Foreign currency exchange contracts		(84	)
Total return swap contracts		(1,106	)
Credit default swap contracts		138
Foreign currency-related transactions		4
Capital gain distributions from affiliated funds		1,548
Net realized gain (loss)		1,837
Net change in unrealized appreciation (depreciation) on:
Investments		170
Investments in affiliated funds		6,002
Futures contracts		(264	)
Options written		(23	)
Foreign currency exchange contracts		(141	)
Total return swap contracts		45
Credit default swap contracts		(180	)
Net change in unrealized appreciation (depreciation)		5,609
Net realized and unrealized gain (loss)		7,446
Net Increase (Decrease) in Net Assets from Operations	$	10,277

See accompanying notes which are an integral part of the financial statements.

22 Moderate Strategy Fund

Russell Investment Funds
Moderate Strategy Fund

Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	2,831		$	3,508
Net realized gain (loss)		1,837			5,630
Net change in unrealized appreciation (depreciation)		5,609			(779	)
Net increase (decrease) in net assets from operations		10,277			8,359
Distributions
From net investment income		(2,453	)		(4,052	)
From net realized gain		(1,332	)		(4,815	)
Net decrease in net assets from distributions		(3,785	)		(8,867	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		782			95
Total Net Increase (Decrease) in Net Assets		7,274			(413	)
Net Assets
Beginning of period		107,632			108,045
End of period	$	114,906		$	107,632
Undistributed (overdistributed) net investment income included in net assets	$	415		$	(7	)

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	1,027		$	10,475		1,057		$	10,402
Proceeds from reinvestment of distributions	377			3,785		917			8,867
Payments for shares redeemed	(1,337	)		(13,478	)	(1,921	)		(19,174	)
Total increase (decrease)	67		$	782		53		$	95

See accompanying notes which are an integral part of the financial statements.

Moderate Strategy Fund 23

Russell Investment Funds
Moderate Strategy Fund

Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

			$
		$	Net		$		$		$		$
	Net Asset Value,		Investment	Net Realized			Total from		Distributions		Distributions
	Beginning of		Income (Loss)	and Unrealized			Investment		from Net		from Net
		Period	(a)(b)(d)	Gain (Loss)			Operations		Investment Income		Realized Gain
December 31, 2017		9.69	. 25		. 70		. 95		(. 23	)	(. 12	)
December 31, 2016		9.78	. 31		. 43		. 74		(. 38	)	(. 45	)
December 31, 2015		10.45	. 26		(. 43	)	(. 17	)	(. 25	)	(. 25	)
December 31, 2014		10.41	. 31		. 19		. 50		(. 30	)	(. 16	)
December 31, 2013		10.10	. 18		. 50		. 68		(. 18	)	(. 19	)

See accompanying notes which are an integral part of the financial statements.

24 Moderate Strategy Fund

								%	%		%
			$			$		Ratio of Expenses	Ratio of Expenses	Ratio of Net
			Net Asset Value,	%		Net Assets,		to Average	to Average	Investment Income		%
	$		End of	Total		End of Period		Net Assets,	Net Assets,	to Average		Portfolio
Total Distributions			Period	Return(e)		(000	)	Gross(c)	Net(c)(d)	Net Assets(b)(d)		Turnover Rate
	(. 35	)	10.29	9.88		114,906		. 35	. 13		2.57	20
	(. 83	)	9.69	7.75		107,632		. 33	. 11		3.17	38
	(. 50	)	9.78	(1.71	)	108,045		. 32	. 11		2.57	29
	(. 46	)	10.45	4.85		114,918		. 35	. 10		2.89	18
	(. 37	)	10.41	6.79		103,093		. 35	. 10		1.69	18

See accompanying notes which are an integral part of the financial statements.

Moderate Strategy Fund 25

Russell Investment Funds
Moderate Strategy Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:
Administration fees	$	4,118
Transfer agent fees		426
Trustee fees		266
	$	4,810

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

		Fair Value,									Change in
	Beginning of						Realized Gain				Unrealized			Fair Value, End				Income	Capital Gains
		Period	Purchases				Sales		(Loss)		Gain (Loss)			of Period				Distributions		Distributions
RIC Commodity Strategies Fund	$	3,224		$	784	$	516	$	(148)	$		173	$	3,517		$	53		$	—
RIC Global Infrastructure Fund		3,159			644		716		13		208			3,308			199			139
RIF Global Real Estate Securities
Fund		1,885			68		1,858		365		(303		)	157			13			3
RIC U. S. Defensive Equity Fund		83			10		31		—		5			67				2		5
RIC U. S. Dynamic Equity Fund		1,864			89		1,732		190		(155		)	256			39			30
RIF U. S. Small Cap Equity Fund		4,260			5,404		1,583		70		469			8,620			181			389
RIF U. S. Strategic Equity Fund		104			1,902		302		12		99			1,815			75			112
RIC Global Opportunistic Credit
Fund		17,678			1,557		5,990		60		797			14,102			656			—
RIC Investment Grade Bond Fund		13,244			1,516		1,162		(8	)	266			13,856			211			—
RIC Unconstrained Total Return
Fund		5,377			638		331		—		6			5,690			110			—
RIF Strategic Bond Fund		23,846			2,674		2,087		2		586			25,021			325			—
RIC Emerging Markets Fund		6,904			730		2,324		156		1,912			7,378			92			—
RIC Global Equity Fund		6,918			1,434		1,285		160		494			7,721			325			597
RIF International Fund Developed Markets		6,343			825		1,490		220		843			6,741			169			224
RIC Multi-Strategy Income Fund		10,712			3,539		1,215		8		602			13,646			521			49
U. S. Cash Management Fund		516			4,713		5,229		—		—			—				4		—
	$	106,117		$	26,527	$	27,851	$	1,100	$	6,002		$		111,895	$	2,975		$	1,548

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	105,458,950
Unrealized Appreciation	$	7,876,513
Unrealized Depreciation		(873,193	)
Net Unrealized Appreciation (Depreciation)	$	7,003,320
Undistributed Ordinary Income	$	335,140
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	946,643
Tax Composition of Distributions
Ordinary Income	$	2,722,564
Long-Term Capital Gains	$	1,062,756

See accompanying notes which are an integral part of the financial statements.

26 Moderate Strategy Fund

Russell Investment Funds
Moderate Strategy Fund

Federal Income Taxes, continued

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent differences between book and
tax accounting.  Book-tax differences may be due to foreign currency gains and losses, reclassifications of dividends and differences in
treatment of income from swaps.  These adjustments have no impact on the net assets. At December 31, 2017, the Statement of Assets
and Liabilities have been adjusted by the following amounts (in thousands):

Undistributed net investment income	$	44
Accumulated net realized gain (loss)		(45	)
Additional paid-in capital		1

See accompanying notes which are an integral part of the financial statements.

Moderate Strategy Fund 27

Russell Investment Funds
Balanced Strategy Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

Balanced Strategy Fund			Bloomberg Barclays U. S. Aggregate Bond Index**
	Total			Total
	Return			Return
1 Year	12.00	%	1 Year	3.54	%
5 Years	7.01	%§	5 Years	2.10	%§
10 Years	4.88	%§	10 Years	4.01	%§
			Russell 1000® Index***
				Total
				Return
			1 Year	21.69	%
			5 Years	15.71	%§
			10 Years	8.59	%§
			Russell Developed ex-U. S. Large Cap® Index Net****
				Total
				Return
			1 Year	24.85	%
			5 Years	7.80	%§
			10 Years	2.14	%§

28 Balanced Strategy Fund

Russell Investment Funds
Balanced Strategy Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The Balanced Strategy Fund (the “Fund”) is a fund of funds that	Within equities, overall global equity markets posted very strong
invests principally in other Russell Investment Funds (“RIF”)	returns, as the Russell Developed Large Cap® Index (Net) gained
and Russell Investment Company (“RIC”) mutual funds (the	22.39%. Emerging markets were one of the top performing
“Underlying Funds”) . The Underlying Funds employ a multi-	segments of global equity markets over the period. The Fund’s
manager approach whereby portions of the Underlying Funds	strategic exposure to emerging markets proved beneficial over
are allocated to different money manager strategies. Underlying	the period as they rallied, boosted by lower interest rates and
Fund assets not allocated to money managers are managed by	improving economic growth. By contrast, non-U. S. developed
Russell Investment Management, LLC (“RIM”), the Fund’s	equities slightly lagged U. S. equities, as defensive and commodity
and Underlying Funds’ advisor. RIM, as the Underlying Funds’	sectors, especially consumer staples, health care and energy,
advisor, may change the allocation of the Underlying Funds’	weighed on non-U. S. equity returns.
assets among money managers at any time. An exemptive order
from the Securities and Exchange Commission (“SEC”) permits	How did the investment strategies and techniques employed
RIM to engage or terminate a money manager in an Underlying	by the Fund and the Underlying Funds affect the Fund’s
Fund at any time, subject to approval by the Underlying Fund’s	performance?
Board, without a shareholder vote. Pursuant to the terms of the	The Fund is a fund of funds and its performance is based on RIM’s
exemptive order, an Underlying Fund is required to notify its	strategic asset allocations, the performance of the Underlying
shareholders within 90 days of when a money manager begins	Funds in which the Fund invests, and tactical changes in the
providing services.	Fund’s asset allocation throughout the year. In order to seek to
	achieve the Fund’s objective during the period, RIM’s strategic
What is the Fund’s investment objective?	asset allocation included investments in global equity, fixed
The Fund seeks to provide above average long term capital	income, multi-asset and alternative Underlying Funds.
appreciation and a moderate level of current income.	The Fund’s diverse asset allocation contributed positively to
How did the Fund perform relative to its benchmark for the	performance during the period. Non-traditional asset classes
fiscal year ended December 31, 2017?	such as high yield bonds returned 8.02%, as measured by the ICE
For the fiscal year ended December 31, 2017, the Fund gained	BofAML Global High Yield Index Hedged (USD), outperforming
12.00%. This is compared to the Fund’s primary benchmark, the	the Fund’s primary benchmark, the Bloomberg Barclays U. S.
Bloomberg Barclays U. S. Aggregate Bond Index, which gained	Aggregate Bond Index. Non-U. S. developed equities and
3.54% during the same period. The Fund’s performance includes	commodities delivered positive returns as well, as measured
operating expenses, whereas index returns are unmanaged and do	by the Russell Developed ex-U. S. Large Cap® Index Net and
not include expenses of any kind.	Bloomberg Commodity Index Total Return, respectively.
For the fiscal year ended December 31, 2017, the Morningstar	The fixed income portion of the Fund’s portfolio outperformed
Insurance Allocation – 50% to 70% Equity Category, a group of	the Fund’s fixed income benchmark. An allocation to the RIF
funds that Morningstar considers to have investment strategies	Strategic Bond Fund was positive from a benchmark-relative
similar to those of the Fund, gained 13.21%. This result serves	perspective as a result of its exposure to high yield corporate debt
as a peer comparison and is expressed net of operating expenses.	and non-agency mortgage backed securities. The excess returns
	were partially offset by the RIC Global Opportunistic Credit
How did the market conditions described in the Market	Fund as a result of its ex-benchmark allocation to investment
Summary report affect the Fund’s performance?	grade corporate debt and securitized bonds, which lagged the
The Fund seeks to achieve its objective by investing in Underlying	traditional spread sectors of high yield corporate bonds and U. S.
Funds that provide exposure to a range of diversified investments,	dollar emerging market debt.
and most major asset classes invested in by the Underlying Funds	Due to the strong performance of equity markets over the
produced positive absolute returns during the period.	period, the equity portion of the Fund’s portfolio contributed to
Within the Fund’s fixed income portfolio, exposure to high yield	excess returns. The RIC Global Equity Fund outperformed its
debt was beneficial as it was among the best-performing segments	global equity benchmark, supported by strategic and tactical
of the fixed income market over the one-year period. Rising	overweights to growth. By contrast, the RIC U. S. Defensive
interest rates posed a challenge to other fixed income assets, as	Equity Fund underperformed its benchmark as stock selection
well as more interest rate sensitive real assets such as global real	detracted, especially within the consumer staples and consumer
estate investment trusts (“REITs”) and global infrastructure.	discretionary sectors.

Balanced Strategy Fund 29

Russell Investment Funds
Balanced Strategy Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The alternative assets portion of the Fund’s portfolio positively	trimmed high yield exposure to an underweight for the first time
contributed to absolute returns, though the rising rate environment	since 2015 by underweighting the RIC Global Opportunistic Credit
over the one-year period, that picked up towards end of third	Fund. During third quarter 2017, RIM moved to an underweight
quarter 2017, created headwinds for rate-sensitive asset classes	position in the RIC Global Infrastructure Fund as rising interest
such as listed REITs and listed infrastructure.	rates and higher valuations became more of a concern for the
	rate-sensitive sector. RIM maintained an underweight to the
Describe any changes to the Fund’s structure or allocation	RIF Global Real Estate Securities Fund over the period due to
to the Underlying Funds.	its rate-sensitive nature. During the fourth quarter of 2017, RIM
RIM has the discretion to vary the Fund’s actual allocation from	moved to further underweight listed infrastructure by trimming
the target strategic asset allocation by up to +/- 5% at the equity,	the Fund’s exposure to the RIC Global Infrastructure Fund due to
fixed income, multi-asset or alternative category level based on	its relatively expensive valuation. RIM also slightly trimmed the
RIM’s capital markets research. In addition to investing in the	underweight to REITs through increasing the Fund’s exposure to
Underlying Funds, RIM may seek to actively manage a Fund’s	the RIF Global Real Estate Securities Fund. RIM’s modifications
overall exposures by investing in derivatives that RIM believes	to the Fund’s asset allocation were additive during the period.
will achieve the desired risk/return profile for the Fund. RIM’s
asset allocation modifications, implemented through both tactical	The views expressed in this report reflect those of the
changes to Underlying Fund allocations and derivatives-based	portfolio managers only through the end of the period
exposures, benefited the Fund’s performance relative to the	covered by the report. These views do not necessarily
Fund’s target strategic asset allocation.	represent the views of RIM, or any other person in RIM or
RIM tactically adapted the Fund’s asset allocation over the period	any other affiliated organization. These views are subject to
as market opportunities and risks evolved. RIM continued to	change at any time based upon market conditions or other
operate the Fund as a risk manager rather than risk taker. The Fund	events, and RIM disclaims any responsibility to update the
maintained an underweight position in U. S. equity by trimming its	views contained herein. These views should not be relied
exposure to the RIC U. S. Defensive Equity Fund relative to RIM’s	on as investment advice and, because investment decisions
long-term strategic weights. During the first quarter of 2017, as	for a Russell Investment Funds (“RIF”) Fund are based on
equity markets ran upwards and credit spreads compressed, RIM	numerous factors, should not be relied on as an indication
	of investment decisions of any RIF Fund.

* Assumes initial investment on January 1, 2008.

** The Bloomberg Barclays U.S. Aggregate Bond Index is an index, with income reinvested, generally representative of intermediate-term government bonds,
investment grade corporate debt securities and mortgage-backed securities.

*** The Russell 1000^® Index includes the 1,000 largest companies in the Russell 3000^® Index. The Russell 1000^® Index represents the universe of stocks from
which most active money managers typically select. The Russell 1000^® Index return reflects adjustments from income dividends and capital gain distributions
reinvested as of the ex-dividend dates.

**** The Russell Developed ex-U.S. Large Cap^® Index Net is an index which offers investors access to the large-cap segment of the global equity market, excluding
companies assigned to the United States. It is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely
reconstituted annually to accurately reflect the changes in the market over time and is net of tax on dividends from foreign holdings.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

30 Balanced Strategy Fund

Russell Investment Funds
Balanced Strategy Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this
administrative fees and other Fund expenses. The Example is	section do not reflect any Insurance Company Separate Account
intended to help you understand your ongoing costs (in dollars)	Policy Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017.	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,050.70	$	1,024.50
The information in the table under the heading “Actual	Expenses Paid During Period*	$	0.72	$	0.71
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 0.14%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) . May reflect amounts waived and/or reimbursed. Without any
$1,000 (for example, an $8,600 account value divided by $1,000	waivers and/or reimbursements, expenses would have been higher.
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

Balanced Strategy Fund 31

Russell Investment Funds
Balanced Strategy Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)
				Fair
				Value
	Shares			$
Investments in Affiliated Funds - 97.9%
Alternative - 6.9%
RIC Commodity Strategies Fund Class Y		1,724,871		9,884
RIC Global Infrastructure Fund Class Y		496,423		5,684
RIF Global Real Estate Securities Fund		331,352		4,907
				20,475
Domestic Equities - 9.7%
RIC U. S. Defensive Equity Fund Class Y		109,948		5,651
RIC U. S. Dynamic Equity Fund Class Y		238,935		2,189
RIF U. S. Small Cap Equity Fund		1,012,242		16,601
RIF U. S. Strategic Equity Fund		233,358		4,324
				28,765
Fixed Income - 38.0%
RIC Global Opportunistic Credit Fund Class Y		2,388,859		23,530
RIC Unconstrained Total Return Fund Class Y		2,090,520		20,717
RIF Strategic Bond Fund		6,542,286		67,844
				112,091
International Equities - 39.3%
RIC Emerging Markets Fund Class Y		1,132,765		23,969
RIC Global Equity Fund Class Y		4,999,820		53,997
RIF International Developed Markets Fund		2,889,761		37,914
				115,880
Multi-Asset - 4.0%
RIC Multi-Strategy Income Fund Class Y		1,173,481		11,946
Total Investments in Affiliated Funds
(cost $256,201)				289,157
Options Purchased - 0.7%
(Number of Contracts)
S&P 500 Index
Goldman Sachs May 2018 2,675.00 Call (246)	USD	68,805	(ÿ)	1,924
Total Options Purchased
(cost $1,624)				1,924
Short-Term Investments - 0.0%
U. S. Cash Management Fund(@)		9,627	(8)	10
Total Short-Term Investments
(cost $10)				10
Total Investments 98.6%
(identified cost $257,835)				291,091
Other Assets and Liabilities, Net - 1.4%				4,168
Net Assets - 100.0%				295,259

See accompanying notes which are an integral part of the financial statements.

32 Balanced Strategy Fund

Russell Investment Funds
Balanced Strategy Fund

Schedule of Investments, continued — December 31, 2017

Futures Contracts
Amounts in thousands (except contract amounts)
							Value and
							Unrealized
							Appreciation
		Number of		Notional		Expiration	(Depreciation)
		Contracts		Amount		Date	$
Long Positions
Amsterdam Index Futures			16	EUR	1,742	01/18	(24	)
CAC40 Euro Index Futures			91	EUR	4,833	01/18	(88	)
DAX Index Futures			14	EUR	4,519	03/18	(104	)
EURO STOXX 50 Index Futures			84	EUR	2,934	03/18	(85	)
FTSE/MIB Index Futures			11	EUR	1,197	03/18	(61	)
IBEX 35 Index Futures			16	EUR	1,603	01/18	(42	)
OMXS 30 Index Futures			66	SEK	10,390	01/18	(35	)
Short Positions
Dow U. S. Real Estate Index Futures			51	USD	1,639	03/18	(4	)
FTSE 100 Index Futures			21	GBP	1,604	03/18	(60	)
Hang Seng Index Futures			1	HKD	1,497	01/18	(2	)
MSCI Emerging Markets Mini Index Futures			26	USD	1,513	03/18	(71	)
MSCI Singapore Index Futures			1	SGD	39	01/18	—
S&P 500 E-Mini Index Futures			31	USD	4,148	03/18	(13	)
S&P/TSX 60 Index Futures			14	CAD	2,681	03/18	(8	)
TOPIX Index Futures			15	JPY	272,551	03/18	(52	)
United States 2 Year Treasury Note Futures			11	USD	2,355	03/18	4
United States 5 Year Treasury Note Futures			38	USD	4,414	03/18	20
United States 10 Year Treasury Note Futures			26	USD	3,225	03/18	20
United States Long Bond Futures			2	USD	306	03/18	—
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)							(605	)
Foreign Currency Exchange Contracts
Amounts in thousands
							Unrealized
							Appreciation
	Amount			Amount			(Depreciation)
Counterparty	Sold			Bought		Settlement Date	$
Bank of America	USD	517		CAD	663	03/22/18	12
Bank of America	USD	228		CHF	224	03/22/18	4
Bank of America	USD	18		JPY	2,006	03/22/18	—
Bank of America	USD	29	MXN		553	03/22/18	(1	)
Bank of America	USD	224		NOK	1,850	03/22/18	2
Bank of America	AUD	1,799		USD	1,353	03/22/18	(51	)
Bank of America	EUR	3,672		USD	4,358	03/22/18	(70	)
Bank of America	GBP	1,169		USD	1,573	03/22/18	(9	)
Bank of America	HKD	5,838		USD	749	03/22/18	1
Bank of America	SEK	618		USD	74	03/22/18	(2	)
Bank of America	SGD	306		USD	227	03/22/18	(2	)
Bank of America	ZAR	70		USD	5	03/22/18	(1	)
Commonwealth Bank of Australia	USD	517		CAD	663	03/22/18	11
Commonwealth Bank of Australia	USD	228		CHF	224	03/22/18	4
Commonwealth Bank of Australia	USD	18		JPY	2,006	03/22/18	—
Commonwealth Bank of Australia	USD	29	MXN		553	03/22/18	(1	)
Commonwealth Bank of Australia	USD	224		NOK	1,850	03/22/18	2
Commonwealth Bank of Australia	AUD	1,799		USD	1,353	03/22/18	(51	)
Commonwealth Bank of Australia	EUR	3,672		USD	4,361	03/22/18	(66	)
Commonwealth Bank of Australia	GBP	1,169		USD	1,571	03/22/18	(11	)
Commonwealth Bank of Australia	HKD	5,838		USD	749	03/22/18	—
Commonwealth Bank of Australia	SEK	618		USD	74	03/22/18	(2	)

See accompanying notes which are an integral part of the financial statements.

Balanced Strategy Fund 33

Russell Investment Funds
Balanced Strategy Fund

Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in thousands
							Unrealized
							Appreciation
		Amount		Amount			(Depreciation)
Counterparty		Sold		Bought		Settlement Date	$
Commonwealth Bank of Australia	SGD	306	USD		227	03/22/18	(2	)
Commonwealth Bank of Australia	ZAR	70	USD		5	03/22/18	(1	)
Royal Bank of Canada	TRY	1,760	USD		441	03/22/18	(12	)
State Street	USD	517	CAD		663	03/22/18	11
State Street	USD	228	CHF		224	03/22/18	4
State Street	USD	1,890	CNY		12,570	03/22/18	30
State Street	USD	18	JPY		2,006	03/22/18	—
State Street	USD	29	MXN		553	03/22/18	(1	)
State Street	USD	224	NOK		1,850	03/22/18	2
State Street	USD	31	RUB		1,880	03/22/18	1
State Street	AUD	1,799	USD		1,352	03/22/18	(52	)
State Street	BRL	5,310	USD		1,590	03/22/18	3
State Street	CNY	12,830	USD		1,921	03/22/18	(38	)
State Street	EUR	3,672	USD		4,360	03/22/18	(67	)
State Street	GBP	1,169	USD		1,571	03/22/18	(12	)
State Street	HKD	5,838	USD		749	03/22/18	—
State Street	INR	49,110	USD		754	03/22/18	(10	)
State Street	KRW	1,695,470	USD		1,553	03/22/18	(37	)
State Street	SEK	618	USD		74	03/22/18	(2	)
State Street	SGD	306	USD		227	03/22/18	(2	)
State Street	TWD	28,550	USD		957	03/22/18	(14	)
State Street	ZAR	70	USD		5	03/22/18	(1	)
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts							(431	)

Total Return Swap Contracts
Amounts in thousands

Premiums

Unrealized

Paid

Appreciation

Notional

Termination

(Received)

(Depreciation)

Fair Value

Underlying Reference Entity

Counterparty

Amount

Terms

Date

$

$

$

Short

S&P 500 Total Return Index

Goldman Sachs

USD         43,300

3 Month LIBOR + 0.700%(5)

03/16/18

—

(55

)

(55

)

Total Open Total Return Swap Contracts (å)

—

(55

)

(55

)

Credit Default Swap Contracts

Amounts in thousands

Credit Indices

Premiums

Unrealized

Fund (Pays)/

Paid/

Appreciation

Purchase/Sell

Receives

Termination

(Received)

(Depreciation)

Fair Value

Reference Entity

Counterparty

Protection

Notional Amount

Fixed Rate

Date

$

$

$

CDX Emerging Markets

Index

Bank of America

Purchase

USD

6,305

(1.000%)(2)

12/20/22

264

(211

)

53

CDX Investment Grade

Index

Bank of America

Sell

USD

1,200

1.000%(2)

12/20/22

24

5

29

CDX NA High Yield Index

Bank of America

Sell

USD

7,600

5.000%(2)

12/20/22

573

55

628

Total Open Credit Indices Contracts (å)

861

(151

)

710

See accompanying notes which are an integral part of the financial statements.

34 Balanced Strategy Fund

Russell Investment Funds
Balanced Strategy Fund

Schedule of Investments, continued — December 31, 2017

Presentation of Portfolio Holdings
Amounts in thousands
					Fair Value
											Practical
Portfolio Summary		Level 1			Level 2			Level 3		Expedient (a)			Total		% of Net Assets
Investments in Affiliated Funds	$	289,157		$	—		$		—	$	—	$	289,157			97.9
Options Purchased		1,924			—				—		—		1,924			0.7
Short-Term Investments		—			—				—		10		10			— *
Total Investments		291,081			—				—		10		291,091			98.6
Other Assets and Liabilities, Net																1.4
																100.0
Other Financial Instruments
Assets
Futures Contracts		44			—				—		—		44			— *
Foreign Currency Exchange Contracts		—			87				—		—		87			— *
Credit Default Swap Contracts		—			710				—		—		710			0.2
'
Liabilities
Futures Contracts		(649	)		—				—		—		(649	)		(0.2	)
Foreign Currency Exchange Contracts		—			(518	)			—		—		(518	)		(0.2	)
Total Return Swap Contracts		—			(55	)			—		—		(55	)		(—)*
Total Other Financial Instruments**	$	(605	)	$	224		$		—	$	—	$	(381	)

* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.

See accompanying notes which are an integral part of the financial statements.

Balanced Strategy Fund 35

Russell Investment Funds
Balanced Strategy Fund

Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

							Foreign
	Equity			Credit			Currency			Interest Rate
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts			Contracts
Location: Statement of Assets and Liabilities - Assets
Investments, at fair value*	$	1,924		$	—		$	—		$	—
Unrealized appreciation on foreign currency exchange contracts		—			—			87			—
Variation margin on futures contracts**		—			—			—			44
Credit default swap contracts, at fair value		—			710			—			—
Total	$	1,924		$	710		$	87		$	44
Location: Statement of Assets and Liabilities - Liabilities
Variation margin on futures contracts**	$	649		$	—		$	—		$	—
Unrealized depreciation on foreign currency exchange contracts		—			—			518			—
Total return swap contracts, at fair value		55			—			—			—
Total	$	704		$	—		$	518		$	—
							Foreign
	Equity			Credit			Currency			Interest Rate
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts			Contracts
Location: Statement of Operations - Net realized gain (loss)
Investments***	$	2,568		$	—		$	—		$	—
Futures contracts		(3,071	)		—			—			30
Options written		536			—			—			—
Total return swap contracts		(4,182	)		—			—			—
Credit default swap contracts		—			915			—			—
Foreign currency exchange contracts		—			—			(723	)		—
Total	$	(4,149	)	$	915		$	(723	)	$	30
Location: Statement of Operations - Net change in unrealized appreciation
(depreciation)
Investments****	$	776		$	—		$	—		$	—
Futures contracts		(1,030	)		—			—			44
Options written		(115	)		—			—			—
Total return swap contracts		14			—			—			—
Credit default swap contracts		—			(572	)		—			—
Foreign currency exchange contracts		—			—			(795	)		—
Total	$	(355	)	$	(572	)	$	(795	)	$	44

* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Includes net change in unrealized appreciation/depreciation on purchased options as reported in the Schedule of Investments.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

36 Balanced Strategy Fund

Russell Investment Funds
Balanced Strategy Fund

Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Assets and Derivative Assets
				Gross			Net Amounts
				Amounts				of Assets
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Assets		Assets	Liabilities				Liabilities
Options Purchased Contracts	Investments, at fair value	$	1,924		$	—    $		1,924
Foreign Currency Exchange Contracts	Unrealized appreciation on foreign currency exchange contracts		87			—		87
Futures Contracts	Variation margin on futures contracts		24			—		24
Credit Default Swap Contracts	Credit default swap contracts, at fair value		710			—		710
Total Financial and Derivative Assets			2,745			—		2,745
Financial and Derivative Assets not subject to a netting agreement			(2,658	)		—		(2,658	)
Total Financial and Derivative Assets subject to a netting agreement		$	87		$	—    $		87

Financial Assets, Derivative Assets, and Collateral Held by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Assets
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty	Liabilities		Instruments			Received^			Net Amount
Bank of America	$	17		$	17	$	—	$	—
Commonwealth Bank of Australia		17			17		—		—
State Street		53			53		—		—
Total	$	87		$	87	$	—	$	—

See accompanying notes which are an integral part of the financial statements.

Balanced Strategy Fund 37

Russell Investment Funds
Balanced Strategy Fund

Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
December 31, 2017

Amounts in thousands
Offsetting of Financial Liabilities and Derivative Liabilities
				Gross			Net Amounts
				Amounts			of Liabilities
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Liabilities	Liabilities		Liabilities				Liabilities
Futures Contracts	Variation margin on futures contracts	$	154		$	—    $		154
Foreign Currency Exchange Contracts	Unrealized depreciation on foreign currency exchange contracts		518			—		518
Total Return Swap Contracts	Total return swap contracts, at fair value		55			—		55
Total Financial and Derivative Liabilities			727			—		727
Financial and Derivative Liabilities not subject to a netting agreement			(154	)		—		(154	)
Total Financial and Derivative Liabilities subject to a netting agreement		$	573		$	—    $		573

Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Liabilities
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty		Liabilities	Instruments			Pledged^			Net Amount
Bank of America	$	137		$	17	$	—	$	120
Commonwealth Bank of Australia		134			17		—		117
Goldman Sachs		55			—		—		55
Royal Bank of Canada		12			—		—		12
State Street		235			53		—		182
Total	$	573		$	87	$	—	$	486

^      Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

38 Balanced Strategy Fund

Russell Investment Funds
Balanced Strategy Fund

Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	257,835
Investments, at fair value(>)		291,091
Cash		382
Cash (restricted)(a)(b)(c)		3,777
Unrealized appreciation on foreign currency exchange contracts		87
Receivables:
Investments sold		43
Variation margin on futures contracts		24
Credit default swap contracts, at fair value(+)		710
Total assets		296,114
Liabilities
Payables:
Fund shares redeemed		43
Accrued fees to affiliates		22
Other accrued expenses		63
Variation margin on futures contracts		154
Unrealized depreciation on foreign currency exchange contracts		518
Total return swap contracts, at fair value(8)		55
Total liabilities		855
Net Assets	$	295,259

See accompanying notes which are an integral part of the financial statements.

Balanced Strategy Fund 39

Russell Investment Funds
Balanced Strategy Fund

Statement of Assets and Liabilities, continued — December 31, 2017

Amounts in thousands
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	1,360
Accumulated net realized gain (loss)		802
Unrealized appreciation (depreciation) on:
Investments		300
Investments in affiliated funds		32,956
Futures contracts		(605	)
Foreign currency exchange contracts		(431	)
Total return swap contracts		(55	)
Credit default swap contracts		(151	)
Shares of beneficial interest		290
Additional paid-in capital		260,793
Net Assets	$	295,259
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	10.17
Net assets	$	295,258,504
Shares outstanding ($. 01 par value)		29,025,966
Amounts in thousands
(+)     Credit default swap contracts - premiums paid (received)	$	861
(8)      Total return swap contracts - premiums paid (received)	$	—
(>)     Investments in affiliated funds	$	289,167
(a)     Cash Collateral for Futures	$	2,600
(b)      Cash Collateral for Swaps	$	82
(c)     Cash Collateral for Options	$	1,095
(#) Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

40 Balanced Strategy Fund

Russell Investment Funds
Balanced Strategy Fund

Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Income distributions from affiliated funds	$	8,366
Expenses
Advisory fees		582
Administrative fees		124
Custodian fees		44
Transfer agent fees		13
Professional fees		54
Trustees’ fees		8
Printing fees		55
Miscellaneous		9
Expenses before reductions		889
Expense reductions		(510	)
Net expenses		379
Net investment income (loss)		7,987
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		2,568
Investments in affiliated funds		11,358
Futures contracts		(3,041	)
Options written		536
Foreign currency exchange contracts		(723	)
Total return swap contracts		(4,182	)
Credit default swap contracts		915
Foreign currency-related transactions		20
Capital gain distributions from affiliated funds		7,960
Net realized gain (loss)		15,411
Net change in unrealized appreciation (depreciation) on:
Investments		776
Investments in affiliated funds		11,224
Futures contracts		(986	)
Options written		(115	)
Foreign currency exchange contracts		(795	)
Total return swap contracts		14
Credit default swap contracts		(572	)
Net change in unrealized appreciation (depreciation)		9,546
Net realized and unrealized gain (loss)		24,957
Net Increase (Decrease) in Net Assets from Operations	$	32,944

See accompanying notes which are an integral part of the financial statements.

Balanced Strategy Fund 41

Russell Investment Funds
Balanced Strategy Fund

Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	7,987		$	7,181
Net realized gain (loss)		15,411			12,710
Net change in unrealized appreciation (depreciation)		9,546			4,474
Net increase (decrease) in net assets from operations		32,944			24,365
Distributions
From net investment income		(6,805	)		(9,185	)
From net realized gain		(13,379	)		(4,457	)
Net decrease in net assets from distributions		(20,184	)		(13,642	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		362			(17,261	)
Total Net Increase (Decrease) in Net Assets		13,122			(6,538	)
Net Assets
Beginning of period		282,137			288,675
End of period	$	295,259		$	282,137
Undistributed (overdistributed) net investment income included in net assets	$	1,360		$	244

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	1,004		$	10,195		1,008		$	9,687
Proceeds from reinvestment of distributions	2,006			20,184		1,411			13,642
Payments for shares redeemed	(2,951	)		(30,017	)	(4,233	)		(40,590	)
Total increase (decrease)	59		$	362		(1,814	)	$	(17,261	)

See accompanying notes which are an integral part of the financial statements.

42 Balanced Strategy Fund

(This page intentionally left blank)

Russell Investment Funds
Balanced Strategy Fund

Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

			$
		$	Net		$		$		$		$
	Net Asset Value,		Investment	Net Realized			Total from		Distributions		Distributions
	Beginning of		Income (Loss)	and Unrealized			Investment		from Net		from Net
		Period	(a)(b)(d)	Gain (Loss)			Operations		Investment Income		Realized Gain
December 31, 2017		9.74	. 28		. 87		1.15		(. 25	)	(. 47	)
December 31, 2016		9.38	. 24		. 60		. 84		(. 32	)	(. 16	)
December 31, 2015		10.40	. 22		(. 44	)	(. 22	)	(. 22	)	(. 58	)
December 31, 2014		10.44	. 31		. 17		. 48		(. 31	)	(. 21	)
December 31, 2013		9.55	. 21		. 96		1.17		(. 21	)	(. 07	)

See accompanying notes which are an integral part of the financial statements.

44 Balanced Strategy Fund

								%	%		%
			$			$		Ratio of Expenses	Ratio of Expenses	Ratio of Net
			Net Asset Value,	%		Net Assets,		to Average	to Average	Investment Income		%
	$		End of	Total		End of Period		Net Assets,	Net Assets,	to Average		Portfolio
Total Distributions			Period	Return(e)		(000	)	Gross(c)	Net(c)(d)	Net Assets(b)(d)		Turnover Rate
	(. 72	)	10.17	12.00		295,259		. 31	. 13		2.74	35
	(. 48	)	9.74	9.05		282,137		. 30	. 11		2.55	19
	(. 80	)	9.38	(2.30	)	288,675		. 29	. 11		2.16	23
	(. 52	)	10.40	4.61		314,127		. 31	. 10		2.91	22
	(. 28	)	10.44	12.43		304,103		. 31	. 10		2.09	11

See accompanying notes which are an integral part of the financial statements.

Balanced Strategy Fund 45

Russell Investment Funds
Balanced Strategy Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:
Advisory fees	$	9,308
Administration fees		10,646
Transfer agent fees		1,102
Trustee fees		645
	$	21,701

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

		Fair Value,								Change in
	Beginning of					Realized Gain				Unrealized		Fair Value, End			Income	Capital Gains
		Period		Purchases		Sales		(Loss)		Gain (Loss)		of Period			Distributions		Distributions
RIC Commodity Strategies Fund	$	9,290	$	1,536	$	1,014	$	(323	)  $	395	$	9,884		$	149	$	—
RIC Global Infrastructure Fund		8,287		878		4,313		606		226		5,684			377		240
RIF Global Real Estate Securities
Fund		5,725		3,317		4,343		434		(226	)	4,907			164		90
RIC U. S. Defensive Equity Fund		5,652		632		1,048		319		96		5,651			152		389
RIC U. S. Dynamic Equity Fund		20,007		743		19,564		2,369		(1,366	)	2,189			354		254
RIF U. S. Small Cap Equity Fund		17,444		11,971		15,020		1,259		947		16,601			369		751
RIF U. S. Strategic Equity Fund		19,257		10,295		27,063		6,071		(4,236	)	4,324			591		750
RIC Global Opportunistic Credit
Fund		27,905		1,533		7,288		(108	)	1,488		23,530			1,090		—
RIC Unconstrained Total Return
Fund		11,279		9,955		502		(1	)	(14	)	20,717			409		—
RIF Strategic Bond Fund		62,895		14,553		10,975		(246	)	1,617		67,844			747		—
RIC Emerging Markets Fund		19,254		3,881		5,216		26		6,024		23,969			300		—
RIC Global Equity Fund		28,972		29,694		6,419		346		1,404		53,997			2,262		4,184
RIF International Fund Developed Markets		28,008		10,601		5,546		594		4,257		37,914			900		1,259
RIC Multi-Strategy Income Fund		11,300		711		689		12		612		11,946			482		43
U. S. Cash Management Fund		1,844		23,668		25,502		—		—		10			20		—
	$	277,119	$	123,968	$	134,502	$	11,358	$	11,224	$		289,167	$	8,366	$	7,960

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	261,522,994
Unrealized Appreciation	$	32,105,527
Unrealized Depreciation		(2,495,564	)
Net Unrealized Appreciation (Depreciation)	$	29,609,963
Undistributed Ordinary Income	$	838,674
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	8,082,978
Tax Composition of Distributions
Ordinary Income	$	8,136,244
Long-Term Capital Gains	$	12,048,254

See accompanying notes which are an integral part of the financial statements.

46 Balanced Strategy Fund

Russell Investment Funds
Balanced Strategy Fund

Federal Income Taxes, continued

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent differences between book and
tax accounting. Book-tax differences may be due to foreign currency gains and losses, reclassifications of dividends and differences in
treatment of income from swaps. These adjustments have no impact on the net assets. At December 31, 2017, the Statement of Assets
and Liabilities have been adjusted by the following amounts (in thousands):

Undistributed net investment income	$	(66	)
Accumulated net realized gain (loss)		68
Additional paid-in capital		(2	)

As permitted by tax regulations, the Fund intends to defer a net realized capital loss of $2,838,680 incurred from November 1, 2017 to
December 31, 2017, and treat it as arising in the fiscal year 2018.

See accompanying notes which are an integral part of the financial statements.

Balanced Strategy Fund 47

Russell Investment Funds
Growth Strategy Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

Growth Strategy Fund			Russell 1000® Index**
	Total			Total
	Return			Return
1 Year	15.65	%	1 Year	21.69	%
5 Years	8.21	%§	5 Years	15.71	%§
10 Years	4.61	%§	10 Years	8.59	%§
			Bloomberg Barclays U. S. Aggregate Bond Index***
				Total
				Return
			1 Year	3.54	%
			5 Years	2.10	%§
			10 Years	4.01	%§
			Russell Developed ex-U. S. Large Cap® Index Net****
				Total
				Return
			1 Year	24.85	%
			5 Years	7.80	%§
			10 Years	2.14	%§

48 Growth Strategy Fund

Russell Investment Funds
Growth Strategy Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The Growth Strategy Fund (the “Fund”) is a fund of funds that	Within equities, overall global equity markets posted very strong
invests principally in other Russell Investment Funds (“RIF”)	returns, as the Russell Developed Large Cap® Index (Net) gained
and Russell Investment Company (“RIC”) mutual funds (the	22.39%. Emerging markets were one of the top performing
“Underlying Funds”) . The Underlying Funds employ a multi-	segments of global equity markets over the period. The Fund’s
manager approach whereby portions of the Underlying Funds	strategic exposure to emerging markets proved beneficial over
are allocated to different money manager strategies. Underlying	the period as they rallied, boosted by lower interest rates and
Fund assets not allocated to money managers are managed by	improving economic growth. By contrast, non-U. S. developed
Russell Investment Management, LLC (“RIM”), the Fund’s	equities slightly lagged U. S. equities, as defensive and commodity
and Underlying Funds’ advisor. RIM, as the Underlying Funds’	sectors, especially consumer staples, health care and energy,
advisor, may change the allocation of the Underlying Funds’	weighed on non-U. S. equity returns.
assets among money managers at any time. An exemptive order
from the Securities and Exchange Commission (“SEC”) permits	How did the investment strategies and techniques employed
RIM to engage or terminate a money manager in an Underlying	by the Fund and the Underlying Funds affect the Fund’s
Fund at any time, subject to approval by the Underlying Fund’s	performance?
Board, without a shareholder vote. Pursuant to the terms of the	The Fund is a fund of funds and its performance is based on RIM’s
exemptive order, an Underlying Fund is required to notify its	strategic asset allocations, the performance of the Underlying
shareholders within 90 days of when a money manager begins	Funds in which the Fund invests, and tactical changes in the
providing services.	Fund’s asset allocation throughout the year. In order to seek to
	achieve the Fund’s objective during the period, RIM’s strategic
What is the Fund’s investment objective?	asset allocation included investments in global equity, fixed
The Fund seeks to provide high long term capital appreciation,	income and alternative Underlying Funds.
and as a secondary objective, current income.	The Fund’s diverse asset allocation detracted from relative
How did the Fund perform relative to its benchmark for the	performance during the period. Non-traditional asset classes
fiscal year ended December 31, 2017?	such as high yield bonds returned 8.02%, as measured by
For the fiscal year ended December 31, 2017, the Fund gained	the ICE BofAML Global High Yield Index Hedged (USD),
15.65%. This is compared to the Fund’s primary benchmark,	underperforming the Fund’s primary benchmark, the Russell
the Russell 1000® Index, which gained 21.69% during the same	1000® Index. Non-U. S. developed equities and commodities
period. The Fund’s performance includes operating expenses,	delivered positive returns as measured by the Russell Developed
whereas index returns are unmanaged and do not include	ex-U. S. Large Cap® Index Net and Bloomberg Commodity Index
expenses of any kind.	Total Return, but underperformed relative to U. S. equities.
For the fiscal year ended December 31, 2017, the Morningstar®	Within the Fund’s fixed income portfolio, allocations to the RIF
Insurance Allocation – 70% to 85% Equity Category, a group of	Strategic Bond Fund and RIC Global Opportunistic Credit Fund
funds that Morningstar considers to have investment strategies	were positive in terms of absolute returns, but fell short relative
similar to those of the Fund, gained 16.21%. This result serves	to the strong U. S. equity market return as tracked by the Fund’s
as a peer comparison and is expressed net of operating expenses.	Russell 1000® Index benchmark.
	The equity portion of the Fund’s portfolio provided mixed results as
How did the market conditions described in the Market	compared to the Russell 1000® Index, though generally benefited
Summary report affect the Fund’s performance?	from the strong performance of global equity markets over the
The Fund seeks to achieve its objective by investing in Underlying	period. An allocation to the RIC U. S. Defensive Equity Fund was
Funds that provide exposure to a range of diversified investments,	a notable detractor as stock selection within the Underlying Fund
and most major asset classes invested in by the Underlying Funds	drove underperformance, especially through underperforming
produced positive absolute returns during the period.	holdings within the consumer staples and consumer discretionary
Within the Fund’s fixed income portfolio, exposure to high yield	sectors. The RIC U. S. Dynamic Equity Fund faced performance
debt was beneficial as it was among the best-performing segments	challenges as well, due to its underweight to the largest
of the fixed income market over the one-year period. Rising	capitalization stocks. The RIC Global Equity Fund contributed to
interest rates posed a challenge to other fixed income assets, as	excess returns, benefiting from strategic and tactical overweights
well as more interest rate sensitive real assets such as global real	to growth.
estate investment trusts (“REITs”) and global infrastructure.	The alternative assets portion of the Fund’s portfolio also
	contributed positively to absolute returns but failed to match the

Growth Strategy Fund 49

Russell Investment Funds
Growth Strategy Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

performance of U. S. equity markets. The rising rate environment	since 2015 by underweighting the RIC Global Opportunistic Credit
over the one-year period, that picked up towards end of third	Fund. During third quarter 2017, RIM moved to an underweight
quarter 2017, created headwinds for rate-sensitive asset classes	position in the RIC Global Infrastructure Fund as rising interest
such as listed REITs and listed infrastructure.	rates and higher valuations became more of a concern for the
	rate-sensitive sector. RIM maintained an underweight to the
Describe any changes to the Fund’s structure or allocation	RIF Global Real Estate Securities Fund over the period due to
to the Underlying Funds.	its rate-sensitive nature. During the fourth quarter of 2017, RIM
RIM has the discretion to vary the Fund’s actual allocation from	moved to further underweight listed infrastructure by trimming
the target strategic asset allocation by up to +/- 5% at the equity,	the Fund’s exposure to the RIC Global Infrastructure Fund due to
fixed income, multi-asset or alternative category level based on	its relatively expensive valuation. RIM also slightly trimmed the
RIM’s capital markets research. In addition to investing in the	underweight to REITs through increasing the Fund’s exposure to
Underlying Funds, RIM may seek to actively manage a Fund’s	the RIF Global Real Estate Securities Fund. RIM’s modifications
overall exposures by investing in derivatives that RIM believes	to the Fund’s asset allocation were additive during the period.
will achieve the desired risk/return profile for the Fund. RIM’s
asset allocation modifications, implemented through both tactical	The views expressed in this report reflect those of the
changes to Underlying Fund allocations and derivatives-based	portfolio managers only through the end of the period
exposures, benefited the Fund’s performance relative to the	covered by the report. These views do not necessarily
Fund’s target strategic asset allocation.	represent the views of RIM, or any other person in RIM or
RIM tactically adapted the Fund’s asset allocation over the period	any other affiliated organization. These views are subject to
as market opportunities and risks evolved. RIM continued to	change at any time based upon market conditions or other
operate the Fund as a risk manager rather than risk taker. The Fund	events, and RIM disclaims any responsibility to update the
maintained an underweight position in U. S. equity by trimming its	views contained herein. These views should not be relied
exposure to the RIC U. S. Defensive Equity Fund relative to RIM’s	on as investment advice and, because investment decisions
long-term strategic weights. During the first quarter of 2017, as	for a Russell Investment Funds (“RIF”) Fund are based on
equity markets ran upwards and credit spreads compressed, RIM	numerous factors, should not be relied on as an indication
trimmed high yield exposure to an underweight for the first time	of investment decisions of any RIF Fund.

* Assumes initial investment on January 1, 2008.

** The Russell 1000^® Index includes the 1,000 largest companies in the Russell 3000^® Index. The Russell 1000^® Index represents the universe of stocks from
which most active money managers typically select. The Russell 1000^® Index return reflects adjustments from income dividends and capital gain distributions
reinvested as of the ex-dividend dates.

*** The Bloomberg Barclays U.S. Aggregate Bond Index is an index, with income reinvested, generally representative of intermediate-term government bonds,
investment grade corporate debt securities and mortgage-backed securities.

**** The Russell Developed ex-U.S. Large Cap^® Index Net is an index which offers investors access to the large-cap segment of the global equity market, excluding
companies assigned to the United States. It is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely
reconstituted annually to accurately reflect the changes in the market over time and is net of tax on dividends from foreign holdings.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

50 Growth Strategy Fund

Russell Investment Funds
Growth Strategy Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this
administrative fees and other Fund expenses. The Example is	section do not reflect any Insurance Company Separate Account
intended to help you understand your ongoing costs (in dollars)	Policy Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017.	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,071.60	$	1,024.45
The information in the table under the heading “Actual	Expenses Paid During Period*	$	0.78	$	0.77
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 0.15%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) . May reflect amounts waived and/or reimbursed. Without any
$1,000 (for example, an $8,600 account value divided by $1,000	waivers and/or reimbursements, expenses would have been higher.
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

Growth Strategy Fund 51

Russell Investment Funds
Growth Strategy Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)
				Fair
				Value
	Shares			$
Investments in Affiliated Funds - 97.7%
Alternative - 8.6%
RIC Commodity Strategies Fund Class Y		1,192,779		6,835
RIC Global Infrastructure Fund Class Y		542,675		6,214
RIF Global Real Estate Securities Fund		404,958		5,997
				19,046
Domestic Equities - 29.0%
RIC U. S. Defensive Equity Fund Class Y		208,031		10,693
RIC U. S. Dynamic Equity Fund Class Y		856,271		7,843
RIF U. S. Small Cap Equity Fund		1,560,050		25,585
RIF U. S. Strategic Equity Fund		1,070,748		19,841
				63,962
Fixed Income - 18.9%
RIC Global Opportunistic Credit Fund Class Y		1,285,503		12,662
RIC Unconstrained Total Return Fund Class Y		1,841,248		18,247
RIF Strategic Bond Fund		1,054,790		10,938
				41,847
International Equities - 41.2%
RIC Emerging Markets Fund Class Y		808,537		17,109
RIC Global Equity Fund Class Y		3,244,511		35,040
RIF International Developed Markets Fund		2,956,292		38,786
				90,935
Total Investments in Affiliated Funds
(cost $182,825)				215,790
Options Purchased - 0.3%
(Number of Contracts)
S&P 500 Index
Goldman Sachs May 2018 2,675.00 Call (80)	USD	21,400	(ÿ)	626
Total Options Purchased
(cost $528)				626
Short-Term Investments - 0.0%
U. S. Cash Management Fund(@)		18,689	(8)	19
Total Short-Term Investments
(cost $19)				19
Total Investments 98.0%
(identified cost $183,372)				216,435
Other Assets and Liabilities, Net - 2.0%				4,400
Net Assets - 100.0%				220,835

See accompanying notes which are an integral part of the financial statements.

52 Growth Strategy Fund

Russell Investment Funds
Growth Strategy Fund

Schedule of Investments, continued — December 31, 2017

Futures Contracts
Amounts in thousands (except contract amounts)
					Value and
					Unrealized
					Appreciation
	Number of	Notional		Expiration	(Depreciation)
	Contracts	Amount		Date	$
Long Positions
Amsterdam Index Futures	8	EUR	871	01/18	(12	)
CAC40 Euro Index Futures	47	EUR	2,496	01/18	(45	)
DAX Index Futures	6	EUR	1,937	03/18	(42	)
EURO STOXX 50 Index Futures	44	EUR	1,537	03/18	(45	)
FTSE/MIB Index Futures	5	EUR	544	03/18	(28	)
IBEX 35 Index Futures	8	EUR	802	01/18	(21	)
MSCI EAFE Mini Index Futures	15	USD	1,534	03/18	33
MSCI Emerging Markets Mini Index Futures	6	USD	349	03/18	15
OMXS 30 Index Futures	34	SEK	5,352	01/18	(18	)
Russell 1000 E-Mini Index Futures	3	USD	222	03/18	2
United States 2 Year Treasury Note Futures	10	USD	2,141	03/18	(4	)
United States 5 Year Treasury Note Futures	34	USD	3,950	03/18	(19	)
United States 10 Year Treasury Note Futures	21	USD	2,605	03/18	(16	)
United States Long Bond Futures	2	USD	306	03/18	—
Short Positions
Dow U. S. Real Estate Index Futures	97	USD	3,118	03/18	(7	)
FTSE 100 Index Futures	27	GBP	2,062	03/18	(76	)
Russell 2000 E-Mini Index Futures	54	USD	4,149	03/18	(42	)
S&P 500 E-Mini Index Futures	31	USD	4,148	03/18	(37	)
S&P/TSX 60 Index Futures	13	CAD	2,489	03/18	(7	)
SPI 200 Index Futures	14	AUD	2,107	03/18	(6	)
TOPIX Index Futures	20	JPY	363,400	03/18	(69	)
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)					(444	)

Foreign Currency Exchange Contracts
Amounts in thousands
								Unrealized
								Appreciation
		Amount			Amount			(Depreciation)
Counterparty		Sold			Bought		Settlement Date	$
Bank of America	USD		177	CAD		227	03/22/18	4
Bank of America	AUD		1,893	USD		1,423	03/22/18	(54	)
Bank of America	CHF		388	USD		393	03/22/18	(7	)
Bank of America	EUR		2,462	USD		2,922	03/22/18	(46	)
Bank of America	GBP		977	USD		1,315	03/22/18	(8	)
Bank of America	HKD		893	USD		115	03/22/18	—
Bank of America	JPY		54,489	USD		486	03/22/18	1
Bank of America	MXN		760	USD		39	03/22/18	1
Bank of America	SEK		620	USD		74	03/22/18	(2	)
Bank of America	SGD		55	USD		41	03/22/18	—
Bank of America	ZAR		133	USD		10	03/22/18	(1	)
Commonwealth Bank of Australia	USD		177	CAD		227	03/22/18	4
Commonwealth Bank of Australia	AUD		1,893	USD		1,423	03/22/18	(55	)
Commonwealth Bank of Australia	CHF		388	USD		394	03/22/18	(6	)
Commonwealth Bank of Australia	EUR		2,462	USD		2,924	03/22/18	(44	)
Commonwealth Bank of Australia	GBP		977	USD		1,314	03/22/18	(9	)
Commonwealth Bank of Australia	HKD		893	USD		115	03/22/18	—
Commonwealth Bank of Australia	JPY		54,489	USD		487	03/22/18	1
Commonwealth Bank of Australia	MXN		760	USD		39	03/22/18	1
Commonwealth Bank of Australia	SEK		620	USD		74	03/22/18	(2	)

See accompanying notes which are an integral part of the financial statements.

Growth Strategy Fund 53

Russell Investment Funds
Growth Strategy Fund

Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in thousands
							Unrealized
							Appreciation
		Amount		Amount			(Depreciation)
Counterparty		Sold		Bought		Settlement Date	$
Commonwealth Bank of Australia	SGD	55	USD		41	03/22/18	—
Commonwealth Bank of Australia	ZAR	133	USD		10	03/22/18	(1	)
State Street	USD	177	CAD		227	03/22/18	4
State Street	USD	1,194	CNY		7,940	03/22/18	19
State Street	USD	45	RUB		2,680	03/22/18	1
State Street	AUD	1,893	USD		1,422	03/22/18	(54	)
State Street	CHF	388	USD		394	03/22/18	(6	)
State Street	CNY	4,560	USD		683	03/22/18	(14	)
State Street	EUR	2,462	USD		2,924	03/22/18	(45	)
State Street	GBP	977	USD		1,313	03/22/18	(10	)
State Street	HKD	893	USD		114	03/22/18	—
State Street	JPY	54,489	USD		486	03/22/18	1
State Street	KRW	233,270	USD		214	03/22/18	(5	)
State Street	MXN	760	USD		39	03/22/18	1
State Street	SEK	620	USD		74	03/22/18	(2	)
State Street	SGD	55	USD		41	03/22/18	—
State Street	TWD	28,550	USD		957	03/22/18	(14	)
State Street	ZAR	133	USD		10	03/22/18	(1	)
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts							(348	)

Total Return Swap Contracts
Amounts in thousands

									Premiums		Unrealized
									Paid		Appreciation
				Notional				Termination	(Received)		(Depreciation)		Fair Value
Underlying Reference Entity		Counterparty		Amount		Terms		Date	$		$		$
Short
S&P 500 Total Return Index		Goldman Sachs		USD          14,000	3 Month LIBOR + 0.700%(5)			03/16/18	—		(18	)	(18	)
Total Open Total Return Swap Contracts (å)									—		(18	)	(18	)
Credit Default Swap Contracts
Amounts in thousands
Credit Indices
									Premiums		Unrealized
							Fund (Pays)/		Paid/		Appreciation
			Purchase/Sell				Receives	Termination	(Received)		(Depreciation)		Fair Value
Reference Entity		Counterparty	Protection		Notional Amount		Fixed Rate	Date	$		$		$
CDX Emerging Markets
Index	Bank of America		Purchase		USD	2,231	(1.000%)(2)	12/20/22	93		(74	)	19
CDX Investment Grade
Index	Bank of America		Sell		USD	17,700	1.000%(2)	12/20/22	363		61		424
CDX NA High Yield Index	Bank of America		Purchase		USD	6,900	(5.000%)(2)	12/20/22	(520	)	(63	)	(583	)
Total Open Credit Indices Contracts (å)									(64	)	(76	)	(140	)

See accompanying notes which are an integral part of the financial statements.

54 Growth Strategy Fund

Russell Investment Funds
Growth Strategy Fund

Schedule of Investments, continued — December 31, 2017

Presentation of Portfolio Holdings
Amounts in thousands
					Fair Value
											Practical
Portfolio Summary		Level 1			Level 2			Level 3		Expedient (a)			Total		% of Net Assets
Investments in Affiliated Funds	$	215,790		$	—		$		—	$	—	$	215,790			97.7
Options Purchased		626			—				—		—		626			0.3
Short-Term Investments		—			—				—		19		19			— *
Total Investments		216,416			—				—		19		216,435			98.0
Other Assets and Liabilities, Net																2.0
																100.0
Other Financial Instruments
Assets
Futures Contracts		50			—				—		—		50			— *
Foreign Currency Exchange Contracts		—			38				—		—		38			— *
Credit Default Swap Contracts		—			443				—		—		443			0.2
'
Liabilities
Futures Contracts		(494	)		—				—		—		(494	)		(0.2	)
Foreign Currency Exchange Contracts		—			(386	)			—		—		(386	)		(0.2	)
Total Return Swap Contracts		—			(18	)			—		—		(18	)		(—)*
Credit Default Swap Contracts		—			(583	)			—		—		(583	)		(0.3	)
Total Other Financial Instruments**	$	(444	)	$	(506	)	$		—	$	—	$	(950	)

* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.

See accompanying notes which are an integral part of the financial statements.

Growth Strategy Fund 55

Russell Investment Funds
Growth Strategy Fund

Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

							Foreign
	Equity			Credit			Currency			Interest Rate
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts			Contracts
Location: Statement of Assets and Liabilities - Assets
Investments, at fair value*	$	626		$	—		$	—		$	—
Unrealized appreciation on foreign currency exchange contracts		—			—			38			—
Variation margin on futures contracts**		50			—			—			—
Credit default swap contracts, at fair value		—			443			—			—
Total	$	676		$	443		$	38		$	—
Location: Statement of Assets and Liabilities - Liabilities
Variation margin on futures contracts**	$	455		$	—		$	—		$	39
Unrealized depreciation on foreign currency exchange contracts		—			—			386			—
Total return swap contracts, at fair value		18			—			—			—
Credit default swap contracts, at fair value		—			583			—			—
Total	$	473		$	583		$	386		$	39
							Foreign
	Equity			Credit			Currency			Interest Rate
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts			Contracts
Location: Statement of Operations - Net realized gain (loss)
Investments***	$	598		$	—		$	—		$	—
Futures contracts		(1,532	)		—			—			77
Options written		240			—			—			—
Total return swap contracts		(1,527	)		—			—			—
Credit default swap contracts		—			375			—			—
Foreign currency exchange contracts		—			—			(266	)		—
Total	$	(2,221	)	$	375		$	(266	)	$	77
Location: Statement of Operations - Net change in unrealized appreciation
(depreciation)
Investments****	$	407		$	—		$	—		$	—
Futures contracts		(589	)		—			—			(39	)
Options written		(122	)		—			—			—
Total return swap contracts		114			—			—			—
Credit default swap contracts		—			(316	)		—			—
Foreign currency exchange contracts		—			—			(599	)		—
Total	$	(190	)	$	(316	)	$	(599	)	$	(39	)

* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Includes net change in unrealized appreciation/depreciation on purchased options as reported in the Schedule of Investments.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

56 Growth Strategy Fund

Russell Investment Funds
Growth Strategy Fund

Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Assets and Derivative Assets
				Gross			Net Amounts
				Amounts				of Assets
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Assets		Assets	Liabilities				Liabilities
Options Purchased Contracts	Investments, at fair value	$	626		$	—    $		626
Foreign Currency Exchange Contracts	Unrealized appreciation on foreign currency exchange contracts		38			—		38
Futures Contracts	Variation margin on futures contracts		76			—		76
Credit Default Swap Contracts	Credit default swap contracts, at fair value		443			—		443
Total Financial and Derivative Assets			1,183			—		1,183
Financial and Derivative Assets not subject to a netting agreement			(1,145	)		—		(1,145	)
Total Financial and Derivative Assets subject to a netting agreement		$	38		$	—    $		38

Financial Assets, Derivative Assets, and Collateral Held by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Assets
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty	Liabilities		Instruments			Received^			Net Amount
Bank of America	$	6		$	6		$	—	$	—
Commonwealth Bank of Australia		6			6			—		—
State Street		26			26			—		—
Total	$	38		$	38		$	—	$	—

See accompanying notes which are an integral part of the financial statements.

Growth Strategy Fund 57

Russell Investment Funds
Growth Strategy Fund

Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
December 31, 2017

Amounts in thousands
Offsetting of Financial Liabilities and Derivative Liabilities
				Gross			Net Amounts
				Amounts			of Liabilities
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Liabilities	Liabilities		Liabilities				Liabilities
Futures Contracts	Variation margin on futures contracts	$	85		$	—    $		85
Foreign Currency Exchange Contracts	Unrealized depreciation on foreign currency exchange contracts		386			—		386
Total Return Swap Contracts	Total return swap contracts, at fair value		18			—		18
Credit Default Swap Contracts	Credit default swap contracts, at fair value		583			—		583
Total Financial and Derivative Liabilities			1,072			—		1,072
Financial and Derivative Liabilities not subject to a netting agreement			(668	)		—		(668	)
Total Financial and Derivative Liabilities subject to a netting agreement		$	404		$	—    $		404

Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Liabilities
	Presented in
	the Statement		Financial and
	of Assets and		Derivative			Collateral
Counterparty		Liabilities	Instruments			Pledged^		Net Amount
Bank of America	$	118		$	6	$	—	$	112
Commonwealth Bank of Australia		117			6		—		111
Goldman Sachs		18			—		—		18
State Street		151			26		—		125
Total	$	404		$	38	$	—	$	366

^      Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

58 Growth Strategy Fund

Russell Investment Funds
Growth Strategy Fund

Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	183,372
Investments, at fair value(>)		216,435
Cash		2,150
Cash (restricted)(a)(b)(c)		2,831
Unrealized appreciation on foreign currency exchange contracts		38
Receivables:
Investments sold		22
Variation margin on futures contracts		76
Credit default swap contracts, at fair value(+)		443
Total assets		221,995
Liabilities
Payables:
Fund shares redeemed		21
Accrued fees to affiliates		11
Other accrued expenses		56
Variation margin on futures contracts		85
Unrealized depreciation on foreign currency exchange contracts		386
Total return swap contracts, at fair value(8)		18
Credit default swap contracts, at fair value(+)		583
Total liabilities		1,160
Net Assets	$	220,835

See accompanying notes which are an integral part of the financial statements.

Growth Strategy Fund 59

Russell Investment Funds
Growth Strategy Fund

Statement of Assets and Liabilities, continued — December 31, 2017

Amounts in thousands
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	406
Accumulated net realized gain (loss)		2,739
Unrealized appreciation (depreciation) on:
Investments		98
Investments in affiliated funds		32,965
Futures contracts		(444	)
Foreign currency exchange contracts		(348	)
Total return swap contracts		(18	)
Credit default swap contracts		(76	)
Shares of beneficial interest		211
Additional paid-in capital		185,302
Net Assets	$	220,835
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	10.46
Net assets	$	220,834,873
Shares outstanding ($. 01 par value)		21,105,343
Amounts in thousands
(+)     Credit default swap contracts - premiums paid (received)	$	(64	)
(>)     Investments in affiliated funds	$	215,809
(8)      Total return swap contracts - premiums paid (received)	$	—
(a)     Cash Collateral for Futures	$	1,820
(b)      Cash Collateral for Swaps	$	680
(c)      Cash Collateral for Options	$	331
(#) Net asset value per share equals net assets divided by shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

60 Growth Strategy Fund

Russell Investment Funds
Growth Strategy Fund

Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Income distributions from affiliated funds	$	7,453
Expenses
Advisory fees		425
Administrative fees		90
Custodian fees		41
Transfer agent fees		9
Professional fees		50
Trustees’ fees		6
Printing fees		42
Miscellaneous		10
Expenses before reductions		673
Expense reductions		(375	)
Net expenses		298
Net investment income (loss)		7,155
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		598
Investments in affiliated funds		2,912
Futures contracts		(1,455	)
Options written		240
Foreign currency exchange contracts		(266	)
Total return swap contracts		(1,527	)
Credit default swap contracts		375
Foreign currency-related transactions		5
Capital gain distributions from affiliated funds		8,623
Net realized gain (loss)		9,505
Net change in unrealized appreciation (depreciation) on:
Investments		407
Investments in affiliated funds		15,326
Futures contracts		(628	)
Options written		(122	)
Foreign currency exchange contracts		(599	)
Total return swap contracts		114
Credit default swap contracts		(316	)
Net change in unrealized appreciation (depreciation)		14,182
Net realized and unrealized gain (loss)		23,687
Net Increase (Decrease) in Net Assets from Operations	$	30,842

See accompanying notes which are an integral part of the financial statements.

Growth Strategy Fund 61

Russell Investment Funds
Growth Strategy Fund

Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	7,155		$	4,270
Net realized gain (loss)		9,505			5,873
Net change in unrealized appreciation (depreciation)		14,182			8,563
Net increase (decrease) in net assets from operations		30,842			18,706
Distributions
From net investment income		(6,529	)		(5,792	)
From net realized gain		(4,634	)		(11	)
Net decrease in net assets from distributions		(11,163	)		(5,803	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		(4,788	)		(7,075	)
Total Net Increase (Decrease) in Net Assets		14,891			5,828
Net Assets
Beginning of period		205,944			200,116
End of period	$	220,835		$	205,944
Undistributed (overdistributed) net investment income included in net assets	$	406		$	(85	)

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	755		$	7,645		1,288		$	11,888
Proceeds from reinvestment of distributions	1,099			11,163		617			5,803
Payments for shares redeemed	(2,354	)		(23,596	)	(2,694	)		(24,766	)
Total increase (decrease)	(500	)	$	(4,788	)	(789	)	$	(7,075	)

See accompanying notes which are an integral part of the financial statements.

62 Growth Strategy Fund

(This page intentionally left blank)

Russell Investment Funds
Growth Strategy Fund

Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

			$
		$	Net		$		$		$		$
	Net Asset Value,		Investment	Net Realized			Total from		Distributions		Distributions
	Beginning of		Income (Loss)	and Unrealized			Investment		from Net		from Net
		Period	(a)(b)(d)	Gain (Loss)			Operations		Investment Income		Realized Gain
December 31, 2017		9.53	. 34	1.13			1.47		(. 32	)	(. 22	)
December 31, 2016		8.94	. 20		. 66		. 86		(. 27	)	—(f)
December 31, 2015		10.07	. 17		(. 48	)	(. 31	)	(. 18	)	(. 64	)
December 31, 2014		10.23	. 31		. 07		. 38		(. 30	)	(. 24	)
December 31, 2013		8.97	. 22	1.26			1.48		(. 22	)	—

See accompanying notes which are an integral part of the financial statements.

64 Growth Strategy Fund

								%	%		%
			$			$		Ratio of Expenses	Ratio of Expenses	Ratio of Net
			Net Asset Value,	%		Net Assets,		to Average	to Average	Investment Income		%
	$		End of	Total		End of Period		Net Assets,	Net Assets,	to Average		Portfolio
Total Distributions			Period	Return(e)		(000	)	Gross(c)	Net(c)(d)	Net Assets(b)(d)		Turnover Rate
	(. 54	)	10.46	15.65		220,835		. 32	. 14		3.37	29
	(. 27	)	9.53	9.73		205,944		. 30	. 12		2.14	18
	(. 82	)	8.94	(3.31	)	200,116		. 30	. 11		1.78	23
	(. 54	)	10.07	3.76		208,321		. 32	. 10		2.97	20
	(. 22	)	10.23	16.56		189,956		. 32	. 10		2.29	12

See accompanying notes which are an integral part of the financial statements.

Growth Strategy Fund 65

Russell Investment Funds
Growth Strategy Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:
Advisory fees	$	1,577
Administration fees		7,940
Transfer agent fees		822
Trustee fees		459
	$	10,798

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

	Fair Value,										Change in
	Beginning of						Realized Gain				Unrealized		Fair Value, End				Income		Capital Gains
		Period	Purchases				Sales		(Loss)		Gain (Loss)			of Period				Distributions		Distributions
RIC Commodity Strategies Fund	$	6,252		$	1,248	$	728	$	(166)	$		229	$	6,835		$	103		$	—
RIC Global Infrastructure Fund		5,973			884		1,054		75		336			6,214			377			264
RIF Global Real Estate Securities
Fund		5,972			591		900		105		229			5,997			210			110
RIC U. S. Defensive Equity Fund		10,154			1,169		1,372		240		502			10,693			286			734
RIC U. S. Dynamic Equity Fund		16,453			2,335		10,807		977		(1,115		)	7,843			1,219			906
RIF U. S. Small Cap Equity Fund		19,276			6,803		2,269		80		1,695			25,585			546			1,162
RIF U. S. Strategic Equity Fund		23,283			9,137		14,920		1,341		1,000			19,841			1,016			1,450
RIC Global Opportunistic Credit
Fund		16,111			1,030		5,256		(87	)	864			12,662			591			—
RIC Unconstrained Total Return
Fund		8,239			10,585		554		(3	)	(20		)	18,247			357			—
RIF Strategic Bond Fund		19,597			1,012		9,937		(285	)	551			10,938			143			—
RIC Emerging Markets Fund		17,881			666		6,769		57		5,274			17,109			215			—
RIC Global Equity Fund		25,207			12,046		4,106		219		1,674			35,040			1,477			2,709
RIF International Fund Developed Markets		26,764			12,338		4,782		359		4,107			38,786			902			1,288
U. S. Cash Management Fund		1,371			13,366		14,718		—		—			19			11			—
	$	202,533		$	73,210	$	78,172	$	2,912	$	15,326		$		215,809	$	7,453		$	8,623

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	185,996,040
Unrealized Appreciation	$	33,496,345
Unrealized Depreciation		(3,509,693	)
Net Unrealized Appreciation (Depreciation)	$	29,986,652
Undistributed Ordinary Income	$	36,485
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	8,297,006
Tax Composition of Distributions
Ordinary Income	$	7,231,959
Long-Term Capital Gains	$	3,930,654

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent differences between book and
tax accounting. Book-tax differences may be due to foreign currency gains and losses, reclassifications of dividends and differences in
treatment of income from swaps. These adjustments have no impact on the net assets. At December 31, 2017, the Statement of Assets
and Liabilities have been adjusted by the following amounts (in thousands):

See accompanying notes which are an integral part of the financial statements.

66 Growth Strategy Fund

Russell Investment Funds
Growth Strategy Fund

Federal Income Taxes, continued

Undistributed net investment income	$	(135	)
Accumulated net realized gain (loss)		136
Additional paid-in capital		(1	)

As permitted by tax regulations, the Fund intends to defer a net realized capital loss of $1,445, 500 incurred from November
1, 2017 to December 31, 2017 and treat it as arising in the fiscal year 2018 .

See accompanying notes which are an integral part of the financial statements.

Growth Strategy Fund 67

Russell Investment Funds
Equity Growth Strategy Fund

Portfolio Management Discussion and Analysis — December 31, 2017 (Unaudited)

Equity Growth Strategy Fund			Russell 1000® Index**
	Total			Total
	Return			Return
1 Year	17.55	%	1 Year	21.69	%
5 Years	9.20	%§	5 Years	15.71	%§
10 Years	4.16	%§	10 Years	8.59	%§
			Russell Developed ex-U. S. Large Cap® Index Net***
				Total
				Return
			1 Year	24.85	%
			5 Years	7.80	%§
			10 Years	2.14	%§

68 Equity Growth Strategy Fund

Russell Investment Funds
Equity Growth Strategy Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

The Equity Growth Strategy Fund (the “Fund”) is a fund of	22.39%. Emerging markets were one of the top performing
funds that invests principally in other Russell Investment Funds	segments of global equity markets over the period. The Fund’s
(“RIF”) and Russell Investment Company (“RIC”) mutual funds	strategic exposure to emerging markets proved beneficial over
(the “Underlying Funds”) . The Underlying Funds employ a multi-	the period as they rallied, boosted by lower interest rates and
manager approach whereby portions of the Underlying Funds	improving economic growth. By contrast, non-U. S. developed
are allocated to different money manager strategies. Underlying	equities slightly lagged U. S. equities, as defensive and commodity
Fund assets not allocated to money managers are managed by	sectors, especially consumer staples, health care and energy,
Russell Investment Management, LLC (“RIM”), the Fund’s	weighed on non-U. S. equity returns.
and Underlying Funds’ advisor. RIM, as the Underlying Funds’
advisor, may change the allocation of the Underlying Funds’	How did the investment strategies and techniques employed
assets among money managers at any time. An exemptive order	by the Fund and the Underlying Funds affect the Fund’s
from the Securities and Exchange Commission (“SEC”) permits	performance?
RIM to engage or terminate a money manager in an Underlying	The Fund is a fund of funds and its performance is based on RIM’s
Fund at any time, subject to approval by the Underlying Fund’s	strategic asset allocations, the performance of the Underlying
Board, without a shareholder vote. Pursuant to the terms of the	Funds in which the Fund invests, and tactical changes in the
exemptive order, an Underlying Fund is required to notify its	Fund’s asset allocation throughout the year. In order to seek to
shareholders within 90 days of when a money manager begins	achieve the Fund’s objective during the period, RIM’s strategic
providing services.	asset allocation included investments in global equity, fixed
	income and alternative Underlying Funds.
What is the Fund’s investment objective?
The Fund seeks to provide high long term capital appreciation.	The Fund’s diverse asset allocation detracted from relative
	performance during the period. Non-traditional asset classes
How did the Fund perform relative to its benchmark for the	such as high yield bonds returned 8.02%, as measured by
fiscal year ended December 31, 2017?	the ICE BofAML Global High Yield Index Hedged (USD),
For the fiscal year ended December 31, 2017, the Fund gained	underperforming the Fund’s primary benchmark, the Russell
17.55%. This is compared to the Fund’s primary benchmark,	1000® Index. Non-U. S. developed equities and commodities
the Russell 1000® Index, which gained 21.69% during the same	delivered positive returns as measured by the Russell Developed
period. The Fund’s performance includes operating expenses,	ex-U. S. Large Cap® Index Net and Bloomberg Commodity Index
whereas index returns are unmanaged and do not include	Total Return, but underperformed relative to U. S. equities.
expenses of any kind.	Within the Fund’s fixed income portfolio, an allocation to the
For the fiscal year ended December 31, 2017, the Morningstar®	RIC Global Opportunistic Credit Fund was positive in terms of
Insurance Allocation – 70 to 85% Equity Category, a group of	absolute returns, but fell short relative to the strong U. S. equity
funds that Morningstar considers to have investment strategies	market return as tracked by the Fund’s Russell 1000® Index
similar to those of the Fund, gained 16.21%. This result serves	benchmark.
as a peer comparison and is expressed net of operating expenses.	The equity portion of the Fund’s portfolio provided mixed results as
	compared to the Russell 1000® Index, though generally benefited
How did the market conditions described in the Market	from the strong performance of global equity markets over the
Summary report affect the Fund’s performance?	period. An allocation to the RIC U. S. Defensive Equity Fund was
The Fund seeks to achieve its objective by investing in Underlying	a notable detractor as stock selection within the Underlying Fund
Funds that provide exposure to a range of diversified investments,	drove underperformance, especially through underperforming
and most major asset classes invested in by the Underlying Funds	holdings within the consumer staples and consumer discretionary
produced positive absolute returns during the period.	sectors. The RIC U. S. Dynamic Equity Fund faced performance
Within the Fund’s fixed income portfolio, exposure to high yield	challenges as well, due to its underweight to the largest
debt was beneficial as it was among the best-performing segments	capitalization stocks. The RIC Global Equity Fund contributed to
of the fixed income market over the one-year period. Rising	excess returns, benefiting from strategic and tactical overweights
interest rates posed a challenge to other fixed income assets, as	to growth.
well as more interest rate sensitive real assets such as global real	The alternative assets portion of the Fund’s portfolio also
estate investment trusts (“REITs”) and global infrastructure.	contributed positively to absolute returns but failed to match the
Within equities, overall global equity markets posted very strong	performance of U. S. equity markets. The rising rate environment
returns, as the Russell Developed Large Cap® Index (Net) gained	over the one-year period, that picked up towards end of third

Equity Growth Strategy Fund 69

Russell Investment Funds
Equity Growth Strategy Fund

Portfolio Management Discussion and Analysis, continued — December 31, 2017
(Unaudited)

quarter 2017, created headwinds for rate-sensitive asset classes	Fund. During third quarter 2017, RIM moved to an underweight
such as listed REITs and listed infrastructure.	position in the RIC Global Infrastructure Fund as rising interest
	rates and higher valuations became more of a concern for the
Describe any changes to the Fund’s structure or allocation	rate-sensitive sector. RIM maintained an underweight to the
to the Underlying Funds.	RIF Global Real Estate Securities Fund over the period due to
RIM has the discretion to vary the Fund’s actual allocation from	its rate-sensitive nature. During the fourth quarter of 2017, RIM
the target strategic asset allocation by up to +/- 5% at the equity,	moved to further underweight listed infrastructure by trimming
fixed income, multi-asset or alternative category level based on	the Fund’s exposure to the RIC Global Infrastructure Fund due to
RIM’s capital markets research. In addition to investing in the	its relatively expensive valuation. RIM also slightly trimmed the
Underlying Funds, RIM may seek to actively manage a Fund’s	underweight to REITs through increasing the Fund’s exposure to
overall exposures by investing in derivatives that RIM believes	the RIF Global Real Estate Securities Fund. RIM’s modifications
will achieve the desired risk/return profile for the Fund. RIM’s	to the Fund’s asset allocation were additive during the period.
asset allocation modifications, implemented through both tactical
changes to Underlying Fund allocations and derivatives-based	The views expressed in this report reflect those of the
exposures, benefited the Fund’s performance relative to the	portfolio managers only through the end of the period
Fund’s target strategic asset allocation.	covered by the report. These views do not necessarily
RIM tactically adapted the Fund’s asset allocation over the period	represent the views of RIM, or any other person in RIM or
as market opportunities and risks evolved. RIM continued to	any other affiliated organization. These views are subject to
operate the Fund as a risk manager rather than risk taker. The Fund	change at any time based upon market conditions or other
maintained an underweight position in U. S. equity by trimming its	events, and RIM disclaims any responsibility to update the
exposure to the RIC U. S. Defensive Equity Fund relative to RIM’s	views contained herein. These views should not be relied
long-term strategic weights. During the first quarter of 2017, as	on as investment advice and, because investment decisions
equity markets ran upwards and credit spreads compressed, RIM	for a Russell Investment Funds (“RIF”) Fund are based on
trimmed high yield exposure to an underweight for the first time	numerous factors, should not be relied on as an indication
since 2015 by underweighting the RIC Global Opportunistic Credit	of investment decisions of any RIF Fund.

* Assumes initial investment on January 1, 2008.

** The Russell 1000^® Index includes the 1,000 largest companies in the Russell 3000^® Index. The Russell 1000^® Index represents the universe of stocks from
which most active money managers typically select. The Russell 1000^® Index return reflects adjustments from income dividends and capital gain distributions
reinvested as of the ex-dividend dates.

*** The Russell Developed ex-U.S. Large Cap^® Index Net is an index which offers investors access to the large-cap segment of the global equity market, excluding
companies assigned to the United States. It is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely
reconstituted annually to accurately reflect the changes in the market over time and is net of tax on dividends from foreign holdings.

§ Annualized.

The performance shown in this section does not reflect any Insurance Company Separate Account or Policy Charges. Performance is historical and assumes
reinvestment of all dividends and capital gains.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more
or less than when purchased.  Past performance is not indicative of future results.  Additionally, the returns presented herein may differ from the performance reported
in the Financial Highlights as the returns herein are calculated in a manner consistent with standardized performance in accordance with Securities and Exchange
Commission rules, while the performance in the Financial Highlights has been calculated in accordance with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”).

70 Equity Growth Strategy Fund

Russell Investment Funds
Equity Growth Strategy Fund

Shareholder Expense Example — December 31, 2017 (Unaudited)

Fund Expenses	Please note that the expenses shown in the table are meant
The following disclosure provides important information	to highlight your ongoing costs only and do not reflect any
regarding the Fund’s Shareholder Expense Example	transactional costs. Therefore, the information under the heading
(“Example”) .	“Hypothetical Performance (5% return before expenses)” is
	useful in comparing ongoing costs only, and will not help you
Example	determine the relative total costs of owning different funds. In
As a shareholder of the Fund, you incur two types of costs: (1)	addition, if these transactional costs were included, your costs
transaction costs, and (2) ongoing costs, including advisory and	would have been higher. The fees and expenses shown in this
administrative fees and other Fund expenses. The Example is	section do not reflect any Insurance Company Separate Account
intended to help you understand your ongoing costs (in dollars)	Policy Charges.
of investing in the Fund and to compare these costs with the				Hypothetical
ongoing costs of investing in other mutual funds. The Example				Performance (5%
is based on an investment of $1,000 invested at the beginning of			Actual	return before
the period and held for the entire period indicated, which for this		Performance			expenses)
	Beginning Account Value
Fund is from July 1, 2017 to December 31, 2017.	July 1, 2017	$	1,000.00	$	1,000.00
	Ending Account Value
Actual Expenses	December 31, 2017	$	1,079.50	$	1,024.45
The information in the table under the heading “Actual	Expenses Paid During Period*	$	0.79	$	0.77
Performance” provides information about actual account values
and actual expenses. You may use the information in this column,	* Expenses are equal to the Fund's annualized expense ratio of 0.15%
	(representing the six month period annualized), multiplied by the average
together with the amount you invested, to estimate the expenses	account value over the period, multiplied by 184/365 (to reflect the one-half
that you paid over the period. Simply divide your account value by	year period) . May reflect amounts waived and/or reimbursed. Without any
$1,000 (for example, an $8,600 account value divided by $1,000	waivers and/or reimbursements, expenses would have been higher.
= 8.6), then multiply the result by the number in the first column
in the row entitled “Expenses Paid During Period” to estimate
the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical
Performance (5% return before expenses)” provides information
about hypothetical account values and hypothetical expenses
based on the Fund’s actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund’s
actual return. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports
of other funds.

Equity Growth Strategy Fund 71

Russell Investment Funds
Equity Growth Strategy Fund

Schedule of Investments — December 31, 2017

Amounts in thousands (except share amounts)
				Fair
				Value
	Shares			$
Investments in Affiliated Funds - 97.3%
Alternative - 6.5%
RIC Commodity Strategies Fund Class Y		297,931		1,707
RIC Global Infrastructure Fund Class Y		142,885		1,636
RIF Global Real Estate Securities Fund		20,242		300
				3,643
Domestic Equities - 32.6%
RIC U. S. Defensive Equity Fund Class Y		77,619		3,990
RIC U. S. Dynamic Equity Fund Class Y		322,709		2,956
RIF U. S. Small Cap Equity Fund		492,488		8,076
RIF U. S. Strategic Equity Fund		172,525		3,197
				18,219
Fixed Income - 9.4%
RIC Global Opportunistic Credit Fund Class Y		281,433		2,772
RIC Unconstrained Total Return Fund Class Y		251,663		2,494
				5,266
International Equities - 48.8%
RIC Emerging Markets Fund Class Y		277,185		5,865
RIC Global Equity Fund Class Y		1,058,593		11,434
RIF International Developed Markets Fund		762,504		10,004
				27,303
Total Investments in Affiliated Funds
(cost $44,448)				54,431
Options Purchased - 0.3%
(Number of Contracts)
S&P 500 Index
Goldman Sachs May 2018 2,675.00 Call (23)	USD	6,153	(ÿ)	180
Total Options Purchased
(cost $152)				180
Short-Term Investments - 0.0%
U. S. Cash Management Fund(@)		19,493	(8)	19
Total Short-Term Investments
(cost $19)				19
Total Investments 97.6%
(identified cost $44,619)				54,630
Other Assets and Liabilities, Net - 2.4%				1,316
Net Assets - 100.0%				55,946

See accompanying notes which are an integral part of the financial statements.

72 Equity Growth Strategy Fund

Russell Investment Funds
Equity Growth Strategy Fund

Schedule of Investments, continued — December 31, 2017

Futures Contracts
Amounts in thousands (except contract amounts)
					Value and
					Unrealized
					Appreciation
	Number of	Notional		Expiration	(Depreciation)
	Contracts	Amount		Date	$
Long Positions
Amsterdam Index Futures	3	EUR	327	01/18	(5	)
CAC40 Euro Index Futures	20	EUR	1,062	01/18	(19	)
DAX Index Futures	2	EUR	646	03/18	(14	)
Dow U. S. Real Estate Index Futures	16	USD	514	03/18	3
EURO STOXX 50 Index Futures	19	EUR	664	03/18	(19	)
FTSE/MIB Index Futures	2	EUR	218	03/18	(11	)
IBEX 35 Index Futures	3	EUR	301	01/18	(8	)
MSCI EAFE Index Futures	6	USD	614	03/18	13
OMXS30 Index Futures	14	SEK	2,203	01/18	(7	)
Russell 1000 E-Mini Index Futures	2	USD	148	03/18	1
Short Positions
FTSE 100 Index Futures	10	GBP	764	03/18	(29	)
MSCI Emerging Markets Mini Index Futures	6	USD	349	03/18	(16	)
Russell 2000 E-Mini Index Futures	23	USD	1,767	03/18	(18	)
S&P 500 E-Mini Index Futures	16	USD	2,142	03/18	(19	)
S&P/TSX 60 Index Futures	5	CAD	957	03/18	(3	)
SPI 200 Index Futures	6	AUD	903	03/18	(3	)
Total Value and Unrealized Appreciation (Depreciation) on Open Futures Contracts (å)					(154	)

Foreign Currency Exchange Contracts
Amounts in thousands
								Unrealized
								Appreciation
		Amount			Amount			(Depreciation)
Counterparty		Sold			Bought		Settlement Date	$
Bank of America	USD		177	CAD		227	03/22/18	4
Bank of America	USD		8	ZAR		115	03/22/18	1
Bank of America	AUD		63	USD		47	03/22/18	(2	)
Bank of America	CHF		223	USD		226	03/22/18	(4	)
Bank of America	EUR		1,092	USD		1,296	03/22/18	(20	)
Bank of America	GBP		420	USD		565	03/22/18	(3	)
Bank of America	HKD		360	USD		46	03/22/18	—
Bank of America	JPY		14,768	USD		132	03/22/18	—
Bank of America	MXN		2,025	USD		105	03/22/18	3
Bank of America	SEK		375	USD		45	03/22/18	(1	)
Bank of America	SGD		22	USD		16	03/22/18	—
Commonwealth Bank of Australia	USD		177	CAD		227	03/22/18	4
Commonwealth Bank of Australia	USD		8	ZAR		115	03/22/18	1
Commonwealth Bank of Australia	AUD		63	USD		47	03/22/18	(2	)
Commonwealth Bank of Australia	CHF		223	USD		226	03/22/18	(4	)
Commonwealth Bank of Australia	EUR		1,092	USD		1,297	03/22/18	(19	)
Commonwealth Bank of Australia	GBP		420	USD		564	03/22/18	(4	)
Commonwealth Bank of Australia	HKD		360	USD		46	03/22/18	—
Commonwealth Bank of Australia	JPY		14,768	USD		132	03/22/18	—
Commonwealth Bank of Australia	MXN		2,025	USD		105	03/22/18	3
Commonwealth Bank of Australia	SEK		375	USD		45	03/22/18	(1	)
Commonwealth Bank of Australia	SGD		22	USD		16	03/22/18	—
State Street	USD		437	CNY		2,910	03/22/18	7

See accompanying notes which are an integral part of the financial statements.

Equity Growth Strategy Fund 73

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Equity Growth Strategy Fund

Schedule of Investments, continued — December 31, 2017

Foreign Currency Exchange Contracts
Amounts in thousands
							Unrealized
							Appreciation
		Amount		Amount			(Depreciation)
Counterparty		Sold		Bought		Settlement Date	$
State Street	USD	25	RUB		1,490	03/22/18	1
State Street	BRL	980	USD		294	03/22/18	1
State Street	CNY	2,710	USD		406	03/22/18	(8	)
State Street	INR	12,940	USD		199	03/22/18	(3	)
State Street	KRW	116,630	USD		107	03/22/18	(3	)
State Street	TWD	9,520	USD		319	03/22/18	(5	)
Total Unrealized Appreciation (Depreciation) on Open Foreign Currency Exchange Contracts							(54	)

Total Return Swap Contracts
Amounts in thousands

									Premiums		Unrealized
									Paid		Appreciation
				Notional				Termination	(Received)		(Depreciation)		Fair Value
Underlying Reference Entity		Counterparty		Amount		Terms		Date	$		$		$
Short
S&P 500 Total Return Index		Goldman Sachs		USD        4,000	3 Month LIBOR + 0.700%(5)			03/16/18	—		(5	)	(5	)
Total Open Total Return Swap Contracts (å)									—		(5	)	(5	)
Credit Default Swap Contracts
Amounts in thousands
Credit Indices
									Premiums		Unrealized
							Fund (Pays)/		Paid/		Appreciation
			Purchase/Sell				Receives	Termination	(Received)		(Depreciation)		Fair Value
Reference Entity		Counterparty	Protection		Notional Amount		Fixed Rate	Date	$		$		$
CDX Emerging Markets
Index	Bank of America		Purchase		USD	500	(1.000%)(2)	12/20/22	21		(17	)	4
CDX Investment Grade
Index	Bank of America		Sell		USD	2,000	1.000%(2)	12/20/22	41		7		48
CDX NA High Yield Index	Bank of America		Purchase		USD	1,400	(5.000%)(2)	12/20/22	(105	)	(13	)	(118	)
Total Open Credit Indices Contracts (å)									(43	)	(23	)	(66	)

See accompanying notes which are an integral part of the financial statements.

74 Equity Growth Strategy Fund

Russell Investment Funds
Equity Growth Strategy Fund

Schedule of Investments, continued — December 31, 2017

Presentation of Portfolio Holdings
Amounts in thousands
					Fair Value
											Practical
Portfolio Summary		Level 1			Level 2			Level 3		Expedient (a)			Total		% of Net Assets
Investments in Affiliated Funds	$	54,431		$	—		$		—	$	—	$	54,431			97.3
Options Purchased		180			—				—		—		180			0.3
Short-Term Investments		—			—				—		19		19			— *
Total Investments		54,611			—				—		19		54,630			97.6
Other Assets and Liabilities, Net																2.4
																100.0
Other Financial Instruments
Assets
Futures Contracts		17			—				—		—		17			— *
Foreign Currency Exchange Contracts		—			25				—		—		25			— *
Credit Default Swap Contracts		—			52				—		—		52			0.1
'
Liabilities
Futures Contracts		(171	)		—				—		—		(171	)		(0.3	)
Foreign Currency Exchange Contracts		—			(79	)			—		—		(79	)		(0.1	)
Total Return Swap Contracts		—			(5	)			—		—		(5	)		(—)*
Credit Default Swap Contracts		—			(118	)			—		—		(118	)		(0.2	)
Total Other Financial Instruments**	$	(154	)	$	(125	)	$		—	$	—	$	(279	)

* Less than 0.05% of net assets.
** Futures and foreign currency exchange contract values reflect the unrealized appreciation (depreciation) on the investments.
(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified
in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Schedule of
Investments.

For a description of the Levels, see note 2 in the Notes to Financial Statements.
For a disclosure on transfers between Levels 1, 2 and 3 during the period ended December 31, 2017, see note 2 in the Notes to
Financial Statements.

See accompanying notes which are an integral part of the financial statements.

Equity Growth Strategy Fund 75

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Equity Growth Strategy Fund

Fair Value of Derivative Instruments — December 31, 2017

Amounts in thousands

							Foreign
	Equity			Credit			Currency
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts
Location: Statement of Assets and Liabilities - Assets
Investments, at fair value*	$	180		$	—		$	—
Unrealized appreciation on foreign currency exchange contracts		—			—			25
Variation margin on futures contracts**		17			—			—
Credit default swap contracts, at fair value		—			52			—
Total	$	197		$	52		$	25
Location: Statement of Assets and Liabilities - Liabilities
Variation margin on futures contracts**	$	171		$	—		$	—
Unrealized depreciation on foreign currency exchange contracts		—			—			79
Total return swap contracts, at fair value		5			—			—
Credit default swap contracts, at fair value		—			118			—
Total	$	176		$	118		$	79
							Foreign
	Equity			Credit			Currency
Derivatives not accounted for as hedging instruments	Contracts			Contracts			Contracts
Location: Statement of Operations - Net realized gain (loss)
Investments***	$	166		$	—		$	—
Futures contracts		(329	)		—			—
Options written		62			—			—
Total return swap contracts		(383	)		—			—
Credit default swap contracts		—			(33	)		—
Foreign currency exchange contracts**		—			—			(91	)
Total	$	(484	)	$	(33	)	$	(91	)
Location: Statement of Operations - Net change in unrealized appreciation (depreciation)
Investments****	$	111		$	—		$	—
Futures contracts		(239	)		—			—
Options written		(34	)		—			—
Total return swap contracts		(5	)		—			—
Credit default swap contracts		—			(23	)		—
Foreign currency exchange contracts		—			—			(98	)
Total	$	(167	)	$	(23	)	$	(98	)

* Fair value of purchased options.
** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within the
Statement of Assets and Liabilities.
*** Includes net realized gain (loss) on purchased options as reported in the Statement of Operations.
**** Includes net change in unrealized appreciation/depreciation on purchased options as reported in the Schedule of Investments.

For further disclosure on derivatives see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

76 Equity Growth Strategy Fund

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Equity Growth Strategy Fund

Balance Sheet Offsetting of Financial and Derivative Instruments —
December 31, 2017

Amounts in thousands
Offsetting of Financial Assets and Derivative Assets
					Gross			Net Amounts
					Amounts				of Assets
			Gross		Offset in the			Presented in
		Amounts of			Statement of			the Statement
		Recognized			Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Assets		Assets		Liabilities				Liabilities
Options Purchased Contracts	Investments, at fair value	$		180		$	—    $		180
Foreign Currency Exchange Contracts	Unrealized appreciation on foreign currency exchange contracts			25			—		25
Futures Contracts	Variation margin on futures contracts			26			—		26
Credit Default Swap Contracts	Credit default swap contracts, at fair value			52			—		52
Total Financial and Derivative Assets				283			—		283
Financial and Derivative Assets not subject to a netting agreement			(258		)		—		(258	)
Total Financial and Derivative Assets subject to a netting agreement		$		25		$	—    $		25

Financial Assets, Derivative Assets, and Collateral Held by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Assets
	Presented in
	the Statement		Financial and
	of Assets and		Derivative				Collateral
Counterparty	Liabilities		Instruments				Received^	Net Amount
Bank of America	$	8		$	8	$	—	$         —
Commonwealth Bank of Australia		9			9		—	—
State Street		8			8		—	—
Total	$	25		$	25	$	—	$         —

See accompanying notes which are an integral part of the financial statements.

Equity Growth Strategy Fund 77

Russell Investment Funds
Equity Growth Strategy Fund

Balance Sheet Offsetting of Financial and Derivative Instruments, continued —
December 31, 2017

Amounts in thousands
Offsetting of Financial Liabilities and Derivative Liabilities
				Gross			Net Amounts
				Amounts			of Liabilities
			Gross	Offset in the			Presented in
		Amounts of		Statement of			the Statement
		Recognized		Assets and			of Assets and
Description	Location: Statement of Assets and Liabilities - Liabilities	Liabilities		Liabilities				Liabilities
Futures Contracts	Variation margin on futures contracts	$	36		$	—     $		36
Foreign Currency Exchange Contracts	Unrealized depreciation on foreign currency exchange contracts		79			—		79
Total Return Swap Contracts	Total return swap contracts, at fair value		5			—		5
Credit Default Swap Contracts	Credit default swap contracts, at fair value		118			—		118
Total Financial and Derivative Liabilities			238			—		238
Financial and Derivative Liabilities not subject to a netting agreement			(154	)		—		(154	)
Total Financial and Derivative Liabilities subject to a netting agreement		$	84		$	—     $		84

Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty
			Gross Amounts Not Offset in
			the Statement of Assets and
					Liabilities
	Net Amounts
	of Liabilities
	Presented in
	the Statement		Financial and
	of Assets and		Derivative				Collateral
Counterparty	Liabilities		Instruments				Pledged^	Net Amount
Bank of America	$	31		$	8	$	—	$       23
Commonwealth Bank of Australia		30			9		—	21
Goldman Sachs		5			—		—	5
State Street		18			8		—	10
Total	$	84		$	25	$	—	$       59

^      Collateral received or pledged amounts may not reconcile to those disclosed in the Statement of Assets and Liabilities due to the inclusion of off-Balance
Sheet collateral and adjustments made to exclude overcollateralization.

For further disclosure on derivatives and counterparty risk see note 2 in the Notes to Financial Statements.

See accompanying notes which are an integral part of the financial statements.

78 Equity Growth Strategy Fund

Russell Investment Funds
Equity Growth Strategy Fund

Statement of Assets and Liabilities — December 31, 2017

Amounts in thousands
Assets
Investments, at identified cost	$	44,619
Investments, at fair value(>)		54,630
Cash		223
Cash (restricted)(a)(b)(c)		1,262
Unrealized appreciation on foreign currency exchange contracts		25
Receivables:
Fund shares sold		1
From affiliates		6
Variation margin on futures contracts		26
Credit default swap contracts, at fair value(+)		52
Total assets		56,225
Liabilities
Payables:
Investments purchased		1
Accrued fees to affiliates		2
Other accrued expenses		38
Variation margin on futures contracts		36
Unrealized depreciation on foreign currency exchange contracts		79
Total return swap contracts, at fair value(8)		5
Credit default swap contracts, at fair value(+)		118
Total liabilities		279
Net Assets	$	55,946

See accompanying notes which are an integral part of the financial statements.

Equity Growth Strategy Fund 79

Russell Investment Funds
Equity Growth Strategy Fund

Statement of Assets and Liabilities, continued — December 31, 2017

Amounts in thousands
Net Assets Consist of:
Undistributed (overdistributed) net investment income	$	98
Accumulated net realized gain (loss)		(265	)
Unrealized appreciation (depreciation) on:
Investments		28
Investments in affiliated funds		9,983
Futures contracts		(154	)
Foreign currency exchange contracts		(54	)
Total return swap contracts		(5	)
Credit default swap contracts		(23	)
Shares of beneficial interest		56
Additional paid-in capital		46,282
Net Assets	$	55,946
Net Asset Value, offering and redemption price per share:
Net asset value per share: (#)	$	9.97
Net assets	$	55,945,605
Shares outstanding ($. 01 par value)		5,613,000
Amounts in thousands
(+)     Credit default swap contracts - premiums paid (received)	$	(43	)
(>)     Investments in affiliated funds	$	54,450
(8)      Total return swap contracts - premiums paid (received)	$	—
(a)     Cash Collateral for Futures	$	900
(b)      Cash Collateral for Swaps	$	264
(c)      Cash Collateral for Options	$	98
(#) Net asset value per share equals class level net assets divided by class level shares of beneficial interest outstanding.

See accompanying notes which are an integral part of the financial statements.

80 Equity Growth Strategy Fund

Russell Investment Funds
Equity Growth Strategy Fund

Statement of Operations — For the Period Ended December 31, 2017

Amounts in thousands
Investment Income
Income distributions from affiliated funds	$	2,013
Expenses
Advisory fees		104
Administrative fees		22
Custodian fees		31
Transfer agent fees		2
Professional fees		38
Trustees’ fees		1
Printing fees		18
Miscellaneous		8
Expenses before reductions		224
Expense reductions		(151	)
Net expenses		73
Net investment income (loss)		1,940
Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments		166
Investments in affiliated funds		1,590
Futures contracts		(329	)
Options written		62
Foreign currency exchange contracts		(91	)
Total return swap contracts		(383	)
Credit default swap contracts		(33	)
Foreign currency-related transactions		1
Capital gain distributions from affiliated funds		2,521
Net realized gain (loss)		3,504
Net change in unrealized appreciation (depreciation) on:
Investments		111
Investments in affiliated funds		3,288
Futures contracts		(239	)
Options written		(34	)
Foreign currency exchange contracts		(98	)
Total return swap contracts		(5	)
Credit default swap contracts		(23	)
Net change in unrealized appreciation (depreciation)		3,000
Net realized and unrealized gain (loss)		6,504
Net Increase (Decrease) in Net Assets from Operations	$	8,444

See accompanying notes which are an integral part of the financial statements.

Equity Growth Strategy Fund 81

Russell Investment Funds
Equity Growth Strategy Fund

Statements of Changes in Net Assets

	For the Periods Ended December 31,
Amounts in thousands		2017			2016
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	1,940		$	929
Net realized gain (loss)		3,504			1,237
Net change in unrealized appreciation (depreciation)		3,000			2,736
Net increase (decrease) in net assets from operations		8,444			4,902
Distributions
From net investment income		(1,736	)		(1,396	)
From net realized gain		(1,007	)		—
Net decrease in net assets from distributions		(2,743	)		(1,396	)
Share Transactions*
Net increase (decrease) in net assets from share transactions		2,081			(3,393	)
Total Net Increase (Decrease) in Net Assets		7,782			113
Net Assets
Beginning of period		48,164			48,051
End of period	$	55,946		$	48,164
Undistributed (overdistributed) net investment income included in net assets	$	98		$	(35	)

* Share transaction amounts (in thousands) for the periods ended December 31, 2017 and December 31, 2016 were as follows:

	2017					2016
	Shares			Dollars		Shares			Dollars
Proceeds from shares sold	790		$	7,420		669		$	5,721
Proceeds from reinvestment of distributions	283			2,743		162			1,396
Payments for shares redeemed	(861	)		(8,082	)	(1,233	)		(10,510	)
Total increase (decrease)	212		$	2,081		(402	)	$	(3,393	)

See accompanying notes which are an integral part of the financial statements.

82 Equity Growth Strategy Fund

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Russell Investment Funds
Equity Growth Strategy Fund

Financial Highlights — For the Periods Ended

For a Share Outstanding Throughout Each Period.

			$
		$	Net		$		$		$		$
	Net Asset Value,		Investment	Net Realized			Total from		Distributions		Distributions
	Beginning of		Income (Loss)	and Unrealized			Investment		from Net		from Net
		Period	(a)(b)(d)	Gain (Loss)			Operations		Investment Income		Realized Gain
December 31, 2017		8.92	. 35	1.21			1.56		(. 32	)	(. 19	)
December 31, 2016		8.28	. 17		. 72		. 89		(. 25	)	—
December 31, 2015		9.46	. 16		(. 50	)	(. 34	)	(. 13	)	(. 71	)
December 31, 2014		9.60	. 30		. 04		. 34		(. 32	)	(. 16	)
December 31, 2013		8.21	. 23	1.39			1.62		(. 23	)	—

See accompanying notes which are an integral part of the financial statements.

84 Equity Growth Strategy Fund

								%	%		%
			$			$		Ratio of Expenses	Ratio of Expenses	Ratio of Net
			Net Asset Value,	%		Net Assets,		to Average	to Average	Investment Income		%
	$		End of	Total		End of Period		Net Assets,	Net Assets,	to Average		Portfolio
Total Distributions			Period	Return(e)		(000	)	Gross(c)	Net(c)(d)	Net Assets(b)(d)		Turnover Rate
	(. 51	)	9.97	17.67		55,946		. 43	. 14		3.72	35
	(. 25	)	8.92	10.85		48,164		. 40	. 12		1.97	21
	(. 84	)	8.28	(3.87	)	48,051		. 39	. 11		1.73	31
	(. 48	)	9.46	3.48		52,403		. 40	. 10		3.04	25
	(. 23	)	9.60	19.81		50,254		. 41	. 10		2.55	17

See accompanying notes which are an integral part of the financial statements.

Equity Growth Strategy Fund 85

Russell Investment Funds
Equity Growth Strategy Fund

Related Party Transactions, Fees and Expenses

Accrued fees payable to affiliates for the period ended December 31, 2017 were as follows:
Administration fees	$	2,007
Transfer agent fees		208
Trustee fees		107
	$	2,322

Transactions (amounts in thousands) during the period ended December 31, 2017 with Underlying Funds which are, or were, an
affiliated company are as follows:

		Fair Value,								Change in
	Beginning of					Realized Gain				Unrealized	Fair Value, End			Income			Capital Gains
		Period		Purchases		Sales		(Loss)		Gain (Loss)		of Period			Distributions		Distributions
RIC Commodity Strategies Fund	$	1,455	$	500	$	263	$	(51	)     $	66	$	1,707	$	26		$	—
RIC Global Infrastructure Fund		1,420		437		319		18		80		1,636		97			70
RIF Global Real Estate Securities
Fund		888		142		767		238		(201	)	300		13			5
RIC U. S. Defensive Equity Fund		3,438		881		590		37		224		3,990		106			273
RIC U. S. Dynamic Equity Fund		4,191		1,296		2,395		282		(418	)	2,956		458			341
RIF U. S. Small Cap Equity Fund		5,354		3,430		1,248		58		482		8,076		171			365
RIF U. S. Strategic Equity Fund		4,888		1,742		3,900		781		(314	)	3,197		179			253
RIC Global Opportunistic Credit
Fund		4,864		786		3,067		(92	)	281		2,772		129			—
RIC Unconstrained Total Return
Fund		732		2,023		256		(1	)	(4	)	2,494		47			—
RIC Emerging Markets Fund		5,775		794		2,484		65		1,715		5,865		74			—
RIC Global Equity Fund		7,700		4,538		1,368		115		449		11,434		481			882
RIF International Fund Developed Markets		6,251		4,019		1,334		140		928		10,004		229			332
U. S. Cash Management Fund		324		3,889		4,194		—		—		19			3		—
	$	47,280	$	24,477	$	22,185	$	1,590	$	3,288	$	54,450	$	2,013		$	2,521

Federal Income Taxes

At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), undistributed ordinary income and
undistributed long-term capital gains for income tax purposes were as follows:

Cost of Investments	$	46,425,139
Unrealized Appreciation	$	8,686,861
Unrealized Depreciation		(634,764	)
Net Unrealized Appreciation (Depreciation)	$	8,052,097
Undistributed Ordinary Income	$	38,801
Undistributed Long-Term Capital Gains
(Capital Loss Carryforward)	$	2,402,261
Tax Composition of Distributions
Ordinary Income	$	1,949,480
Long-Term Capital Gains	$	793,264

Net investment income and net realized gains (losses) in the financial statements may differ from taxable net investment income and
net realized gains (losses). Capital accounts within the financial statements are adjusted for permanent differences between book and
tax accounting. Book-tax differences may be due to foreign currency gains and losses, reclassifications of dividends and differences
in treatment of income from swaps. These adjustments have no impact on the net assets. At December 31, 2017, the Statement of
Assets and Liabilities have been adjusted by the following amounts (in thousands):

See accompanying notes which are an integral part of the financial statements.

86 Equity Growth Strategy Fund

Russell Investment Funds
Equity Growth Strategy Fund

Federal Income Taxes, continued

Undistributed net investment income	$	(71	)
Accumulated net realized gain (loss)		71
Additional paid-in capital		—

As permitted by tax regulations, the Fund intends to defer a net realized capital loss of $384,431 incurred from November 1, 2017
to December 31, 2017, and treat it as arising in the fiscal year 2018.

See accompanying notes which are an integral part of the financial statements.

Equity Growth Strategy Fund 87

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Schedule of Investments — December 31, 2017

Footnotes:
(å) Currency balances were pledged in connection with futures contracts purchased (sold), options written, or swaps entered into by the
Fund. See Statement of Assets and Liabilities.
(ÿ) Notional Amount in thousands.
(8) Unrounded units.
(@) Affiliate.
(1) Monthly payment frequency.
(2) Quarterly payment frequency.
(3) Semi-annual payment frequency.
(4) Annual payment frequency.
(5) Payment at termination.
Abbreviations:
144A - Represents private placement security for qualified buyers according to rule 144A of the Securities Act of 1933.
ADR - American Depositary Receipt
ADS - American Depositary Share
BBSW - Bank Bill Swap Reference Rate
CIBOR - Copenhagen Interbank Offered Rate
CME - Chicago Mercantile Exchange
CMO - Collateralized Mortgage Obligation
CVO - Contingent Value Obligation
EMU - European Economic and Monetary Union
EURIBOR - Euro Interbank Offered Rate
FDIC - Federal Deposit Insurance Company
GDR - Global Depositary Receipt
GDS - Global Depositary Share
HIBOR – Hong Kong Interbank Offered Rate
LIBOR - London Interbank Offered Rate
NIBOR - Norwegian Interbank Offered Rate
PIK - Payment in Kind
PRIBOR – Prague Interbank Offered Rate
REMIC - Real Estate Mortgage Investment Conduit
SIBOR – Singapore Interbank Offered Rate
STRIP - Separate Trading of Registered Interest and Principal of Securities
TBA - To Be Announced Security
UK - United Kingdom

88 Notes to Schedule of Investments

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LifePoints^® Funds Variable Target Portfolio Series

Notes to Schedule of Investments, continued — December 31, 2017

Foreign Currency Abbreviations:
ARS - Argentine peso	HUF - Hungarian forint	PKR - Pakistani rupee
AUD - Australian dollar	IDR - Indonesian rupiah	PLN - Polish zloty
BRL - Brazilian real	ILS - Israeli shekel	RUB - Russian ruble
CAD - Canadian dollar	INR - Indian rupee	SEK - Swedish krona
CHF - Swiss franc	ISK - Icelandic krona	SGD - Singapore dollar
CLP - Chilean peso	ITL - Italian lira	SKK - Slovakian koruna
CNY - Chinese renminbi yuan	JPY - Japanese yen	THB - Thai baht
COP - Colombian peso	KES - Kenyan schilling	TRY - Turkish lira
CRC - Costa Rican colon	KRW - South Korean won	TWD - Taiwanese dollar
CZK - Czech koruna	MXN - Mexican peso	USD - United States dollar
DKK - Danish krone	MYR – Malaysian ringgit	VEB - Venezuelan bolivar
EGP - Egyptian pound	NOK - Norwegian krone	VND - Vietnamese dong
EUR - Euro	NZD - New Zealand dollar	ZAR - South African rand
GBP - British pound sterling	PEN - Peruvian nuevo sol
HKD – Hong Kong dollar	PHP – Philippine peso

Notes to Schedule of Investments 89

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Highlights — December 31, 2017

(a) Average daily shares outstanding were used for this calculation.
(b) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the Underlying Funds in which the
Fund invests.
(c) The calculation includes only those expenses charged directly to the Fund and does not include expenses charged to the Underlying Funds in which
the Fund invests.
(d) May reflect amounts waived and reimbursed by Russell Investment Management, LLC ( “RIM”).
(e) The total return does not reflect any Insurance Company Separate Account or Policy Charges.
(f) Less than $.01 per share.

90 Notes to Financial Highlights

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements — December 31, 2017

1. Organization
Russell Investment Funds (the “Investment Company” or “RIF”) is a series investment company with nine different investment
portfolios referred to as funds (each a “Fund” and collectively the “Funds”). These financial statements report on four of these
Funds. The Investment Company provides the investment base for one or more variable insurance products issued by one or more
insurance companies. These Funds are offered at net asset value (“NAV”) to qualified insurance company separate accounts offering
variable insurance products. The Investment Company is registered under the Investment Company Act of 1940, as amended
(“Investment Company Act”), as an open-end management investment company. It is organized and operated as a Massachusetts
business trust under an Amended and Restated Master Trust Agreement dated October 1, 2008, as amended (“Master Trust
Agreement”), and the provisions of Massachusetts law governing the operation of a Massachusetts business trust. The Investment
Company’s Master Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial
interest. Each of the Funds is diversified. Under the Investment Company Act, a diversified company is defined as a management
company which meets the following requirements: at least 75% of the value of its total assets is represented by cash and cash items
(including receivables), government securities, securities of other investment companies, and other securities for the purposes of
this calculation limited in respect of any one issuer to an amount not greater in value than five percent of the value of the total assets
of such management company and to not more than 10% of the outstanding voting securities of such issuer.

Each of the Funds is a “fund of funds” and diversifies its assets by investing principally, at present, in shares of several Russell
Investment Company (“RIC”), an affiliated entity. Funds and other of the Investment Company’s Funds (together, the “Underlying
Funds”). Each Fund seeks to achieve its specific investment objective by investing in different combinations of the Underlying
Funds. In addition to investing in the Underlying Funds, Russell Investment Management, LLC (“RIM”), the Funds’ investment
adviser, may seek to actively manage the Funds' overall exposures by investing in derivatives, including futures, options, forwards
and swaps, that RIM believes will achieve the desired risk/return profile for the Funds. The Funds may hold cash in connection
with these investments. The Funds usually, but not always, pursue a strategy of being fully invested by exposing their cash to the
performance of segments of the global equity market by purchasing index futures contracts (also known as "equitization").

Each Fund intends its strategy of investing in combinations of equity, fixed income, multi-asset and alternative Underlying Funds
to result in investment diversification that an investor could otherwise achieve only by holding numerous individual investments.
A Fund’s actual allocation may vary from the target strategic asset allocation at any point in time (1) due to market movements, (2)
by up to +/- 5% at the equity, fixed income, multi-asset or alternative category level based on RIM’s capital markets research, and/
or (3) due to the implementation over a period of time of a change to the target strategic asset allocation including the addition of a
new Underlying Fund. There may be no changes in the asset allocation or to the Underlying Funds in a given year or such changes
may be made one or more times in a year.

The following table shows each Fund’s target strategic asset allocation effective on or about May 1, 2017 to equity, fixed income,
multi-asset, and alternative asset classes. The equity Underlying Funds in which the Funds may invest include the RIC U.S.
Defensive Equity, RIC U.S. Dynamic Equity, RIF U.S. Small Cap Equity, RIF U.S. Strategic Equity, RIC Emerging Markets, RIC
Global Equity, and RIF International Developed Markets Funds. The fixed income Underlying Funds in which the Funds may invest
include the RIC Global Opportunistic Credit, RIC Investment Grade Bond, RIC Unconstrained Total Return, and RIF Strategic
Bond Funds. The multi-asset Underlying Funds in which the Funds may invest include the RIC Multi-Strategy Income Fund. The
alternative Underlying Funds in which the Funds may invest include the RIC Commodity Strategies, RIC Global Infrastructure and
RIF Global Real Estate Securities Funds.

			Asset Allocation Targets*
	Moderate		Balanced		Growth
	Strategy		Strategy		Strategy		Equity Growth
	Fund		Fund		Fund		Strategy Fund
Alternative **	7.5	%	7	%	8	%	8	%
Equity	29.5	%	51	%	70	%	85	%
Multi-Asset	10	%	4	%	-	%	-	%
Fixed Income	53	%	38	%	22	%	7	%

* Actual asset allocation may vary.
** Alternative Underlying Funds pursue investment strategies that differ from those of traditional broad market equity or fixed income funds.

Notes to Financial Statements 91

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

2. Significant Accounting Policies
The Funds’ financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”)
which require the use of management estimates and assumptions at the date of the financial statements. Actual results could differ
from those estimates. The Funds are considered investment companies under U.S. GAAP and follow the accounting and reporting
guidance applicable to investment companies. The following is a summary of the significant accounting policies consistently
followed by each Fund in the preparation of its financial statements.

In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain
current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments
to Regulation S-X require standardized, enhanced disclosure about derivatives in investment company financial statements, and
also change the rules governing the form and content of such financial statements. The amendments to Regulation S-X took effect
on August 1, 2017 and the financial statements have been modified accordingly, as applicable, and had no impact on the Funds'
net assets or results of operations.

Security Valuation
The Funds value portfolio securities according to Board-approved securities valuation procedures which include market and fair
value procedures. The Board has delegated the responsibility for administration of the securities valuation procedures to Russell
Investments Fund Services, LLC ("RIFUS"). The Funds value the shares of the Underlying Funds at the current NAV per share
of each Underlying Fund. The Funds have adopted the authoritative guidance under U.S. GAAP for estimating the fair value of
investments in funds that have calculated NAV per share in accordance with the specialized accounting guidance for investment
companies. Accordingly, the Funds estimate the fair value of an investment in a fund using the NAV per share without further
adjustment as a practical expedient, if the NAV per share of the investment is determined in accordance with the specialized
accounting guidance for investment companies as of the reporting entity’s measurement date.

U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to
valuation methods and requires a separate disclosure of the fair value hierarchy for each major category of assets and liabilities,
that segregates fair value measurements into levels (Level 1, 2, and 3). The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those securities. Levels 1, 2 and 3 of the fair value hierarchy
are defined as follows:

• Level 1 — Quoted prices (unadjusted) in active markets or exchanges for identical assets and liabilities.

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable, which may include, but are not
limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets
or liabilities in markets that are not active, and inputs such as interest rates, yield curves, implied volatilities, credit spreads
or other market corroborated inputs.

• Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent
observable inputs are not available, which may include assumptions made by RIFUS, acting at the discretion of the Board,
that are used in determining the fair value of investments.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for
example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and
other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable
or unobservable in the market, the determination of fair value requires more judgement. Accordingly, the degree of judgement
exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing
securities are not necessarily an indication of the risk associated with investing in those securities.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that
is significant to the fair value measurement in its entirety.

The valuation techniques and significant inputs used in determining the fair market values of financial instruments categorized as
Level 1 and Level 2 of the fair value hierarchy are as follows:

Derivative instruments are instruments such as foreign currency contracts, futures contracts, options contracts, or swap agreements
that derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors.

92 Notes to Financial Statements

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

Derivatives may be classified into two groups depending upon the way that they are traded: privately traded over-the-counter
(“OTC”) derivatives that do not go through an exchange or intermediary and exchange-traded derivatives that are traded through
specialized derivatives exchanges or other regulated exchanges. OTC derivatives are normally valued on the basis of broker dealer
quotations or pricing service providers. Depending on the product and the terms of the transaction, the value of the derivative
instrument can be estimated by a pricing service provider using a series of techniques, including simulation pricing models.
The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest
rates, yield curves, dividends and exchange rates. OTC derivatives that use these and similar valuation techniques and inputs as
described above are categorized as Level 2 of the fair value hierarchy, with the exception of foreign currency spot contracts which
are categorized as Level 1 of the fair value hierarchy. OTC derivatives that use broker dealer quotations are categorized as level 3 of
the fair value hierarchy. Exchange-traded derivatives are valued based on the last reported sales price on the day of valuation and
are categorized as Level 1 of the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at
the daily settlement price determined by the respective exchange. For centrally cleared credit default swaps, the clearing facility
requires its members to provide actionable levels across complete term structures. These levels along with external third party
prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally
cleared interest rate swaps are valued using a pricing model that references the underlying rates including the overnight index
swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are
categorized as Level 2 of the fair value hierarchy.

For movements between the levels within the fair value hierarchy, the Funds have adopted a policy of recognizing the transfers as
of year-end.

For the period ended December 31, 2017, there was no movement between levels of the fair value hierarchy.

Level 3 Fair Value Investments
The valuation techniques and significant inputs used in determining the fair values of financial instruments classified as Level 3 of
the fair value hierarchy are as follows:

Securities and other assets for which market quotes are not readily available, or are not reliable, are valued at fair value as
determined in good faith by RIFUS and are categorized as Level 3 of the fair value hierarchy. Market quotes are considered not
readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or
broker quotes). When RIFUS applies fair valuation methods that use significant unobservable inputs to determine a Fund’s NAV,
securities will not be priced on the basis of quotes from the primary market in which they are traded, but instead may be priced by
another method that RIFUS believes accurately reflects fair value and will be categorized as Level 3 of the fair value hierarchy. Fair
value pricing may require subjective determinations about the value of a security. While the securities valuation procedures are
intended to result in a calculation of a Fund’s NAV that fairly reflects security values as of the time of pricing, the process cannot
guarantee that fair values determined by RIFUS would accurately reflect the price that a Fund could obtain for a security if it were
to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ
from the value that would be realized if the security was sold.

RIFUS employs third party pricing vendors to provide fair value measurements. RIFUS oversees third-party pricing service
providers in order to support the valuation process throughout the year.

If third party evaluated vendor pricing is neither available nor deemed to be indicative of fair value, RIFUS may elect to obtain
indicative market quotations (“broker quotes”) directly from the broker or passed through from a third party vendor. In the event
that the source of fair value is from a single source broker quote, these securities are classified as Level 3 per the fair value
hierarchy. Broker quotes are typically received from established market participants. Although independently received on a daily
basis, RIFUS does not have the transparency to view the underlying inputs which support the broker quotes. Significant changes
in the broker quote would have direct and proportional changes in the fair value of the security. There is a third-party pricing
exception to the quantitative disclosure requirement when prices are not determined by the reporting entity. RIFUS is exercising
this exception and has made a reasonable attempt to obtain quantitative information from the third party pricing vendors regarding
the unobservable inputs used.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances
for reported fair values that present changes attributable to total realized and unrealized gains or losses, purchases and sales, and
transfers in/out of the Level 3 category during the period. Additionally, U.S. GAAP requires quantitative information regarding the

Notes to Financial Statements 93

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

significant unobservable inputs used in the determination of fair value of assets categorized as Level 3 in the fair value hierarchy. In
accordance with the requirements of U.S. GAAP, a fair value hierarchy, a Level 3 reconciliation and an additional disclosure about
fair value measurements, if any, has been included in the Presentation of Portfolio Holdings for each respective Fund.

Investment Transactions
Investment transactions are reflected as of the trade date for financial reporting purposes. This may cause the NAV stated in the
financial statements to be different from the NAV at which shareholders may transact. Realized gains and losses from securities
transactions, if applicable, are recorded on the basis of specific identified cost incurred within a particular Fund.

Investment Income
Distributions of income and capital gains from the Underlying Funds are recorded on the ex-dividend date.

Federal Income Taxes
Since the Investment Company is a Massachusetts business trust, each Fund is a separate corporate taxpayer and determines its
net investment income and capital gains (or losses) and the amounts to be distributed to each Fund’s shareholders without regard
to the income and capital gains (or losses) of the other Funds.

For each year, each Fund intends to qualify or continue to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended (the “Code”) and intends to distribute all of its taxable income and capital gains.
Therefore, no federal income tax provision is required for the Funds.

Each Fund files a U.S. tax return. At December 31, 2017, the Funds had recorded no liabilities for net unrecognized tax benefits
relating to uncertain income tax positions they have taken or expect to take in future tax returns. While the statute of limitations
remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ended December 31, 2014 through December 31,
2016, no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

The Funds comply with the authoritative guidance for uncertainty in income taxes which requires management to determine whether
a tax position of the Funds is more likely than not to be sustained upon examination, including resolution of any related appeals or
litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the
tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being
realized upon ultimate settlement with the relevant taxing authority. Management determined that no accruals need to be made in
the financial statements due to uncertain tax positions. Management continually reviews and adjusts the Funds’ liability for income
taxes based on analyses of tax laws and regulations, as well as their interpretations, and other relevant factors.

Dividends and Distributions to Shareholders
Income dividends, capital gain distributions and return of capital, if any, are recorded on the ex-dividend date. Income dividends
are generally declared and paid quarterly. Capital gain distributions are generally declared and paid annually. An additional
distribution may be paid by the Funds to avoid imposition of federal income and excise tax on any remaining undistributed capital
gains and net investment income.

The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax
regulations which may differ from U.S. GAAP. As a result, net investment income and net realized gain (or loss) from investment
transactions for a reporting period may differ significantly from distributions during such period. The differences between tax
regulations and U.S. GAAP primarily relate to investments in options, futures, forward contracts, swap contracts, the Underlying
Funds sold at a loss, wash sale deferrals and capital loss carryforwards. Accordingly, the Funds may periodically make reclassifications
among certain of their capital accounts without impacting their NAVs.

Expenses
Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include those expenses
incurred by the Underlying Funds. Because the Underlying Funds have varied expense and fee levels and the Funds may own
different proportions of the Underlying Funds at different times, the amount of the Underlying Funds’ fees and expenses incurred
indirectly by the Funds will vary.

94 Notes to Financial Statements

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

The Funds pay their own expenses other than those expressly assumed by RIM, the Funds’ adviser, or RIFUS. Most expenses can
be directly attributed to the individual Funds. Expenses which cannot be directly attributed to a specific Fund are allocated among
all Funds principally based on their relative net assets.

Derivatives
The Funds may invest in derivatives. Derivatives are instruments or agreements whose value is derived from an underlying security
or index. They include options, futures, swaps and forwards. These instruments offer unique characteristics and risks that facilitate
the Funds’ investment strategies.

The Funds typically use derivatives in three ways: exposing cash to markets, hedging and return enhancement. In addition, the
Funds may enter into foreign exchange contracts for trade settlement purposes. The Funds may pursue their strategy of being fully
invested by exposing cash to the performance of segments of the global equity market by purchasing index futures contracts. This
is intended to cause the Funds to perform as though cash were actually invested in the global equity market.

Hedging may be used by the Funds to limit or control risks, such as adverse movements in exchange rates and interest rates. Return
enhancement can be accomplished through the use of derivatives in a Fund, including using derivatives as a substitute for holding
physical securities, and using them to express various macro views (e.g., interest rate movements, currency movements, and macro
credit strategies). By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio characteristics
that assist them in meeting their investment objectives. Depending on how the derivatives are structured and utilized, the risks
associated with them may vary widely. These risks include, but are not limited to, market risk, liquidity risk, leveraging risk,
counterparty risk, basis risk, reinvestment risk, political risk, prepayment risk, extension risk, valuation risk and credit risk.

Futures, certain options and cleared swaps are traded or cleared on an exchange or central exchange clearing house. Exchange-
traded or exchange-cleared transactions generally present less counterparty risk to a Fund. The exchange’s clearing house stands
between the Fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the clearing
house and the clearing member. Cleared swap contracts are subject to clearing house rules, including initial and variation margin
requirement, daily settlement of obligations and the clearing house guarantee of payments to the broker. There is, however, still
counterparty risk due to the insolvency of the broker with respect to any margin held in the brokers’ customer accounts. While
clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a
shortfall in the amount of margin held by the broker for its clients. Collateral and margin requirements for exchange-traded or
exchange-cleared derivatives are established through regulation, as well as set by the broker or applicable clearing house. Margin
for exchange-traded and exchange-cleared transactions are detailed in the Statements of Assets and Liabilities as cash held at the
broker for futures contracts and cash held at the broker for swap contracts, respectively. Securities pledged by a Fund for exchange-
traded and exchange-cleared transactions are noted as collateral or margin requirements in the Schedule of Investments. Typically,
the Funds and counterparties are not permitted to sell, repledge, rehypothecate or otherwise use collateral pledged by the other
party unless explicitly permitted by each respective governing agreement.

In addition, proposed regulatory changes by the Securities and Exchange Commission ("SEC") relating to a mutual fund's use of
derivatives could potentially limit or impact the Funds' ability to invest in derivatives and adversely affect the value or performance
of the Funds or their derivative investments.

The effects of derivative instruments, categorized by risk exposure, on the Statements of Assets and Liabilities and the Statements of
Operations, for the period ended December 31, 2017, if applicable, are disclosed in the Fair Value of Derivative Instruments table
following each applicable Fund’s Schedule of Investments.

Foreign Currency Exchange Contracts
The Funds may enter into foreign currency exchange spot contracts and forward foreign currency exchange contracts (“FX
contracts”). From time to time, the Funds may enter into FX contracts to hedge certain foreign currency-denominated assets. FX
contracts are recorded at fair value. Certain risks may arise upon entering into these FX contracts from the potential inability
of counterparties to meet the terms of their FX contracts and are generally limited to the amount of unrealized gain on the FX
contracts, if any, that are disclosed in the Statements of Assets and Liabilities.

For the period ended December 31, 2017, the following Funds entered into foreign currency exchange contracts primarily for the
strategies listed below:

Notes to Financial Statements 95

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

Funds	Strategies
Moderate Strategy Fund	Return enhancement and hedging
Balanced Strategy Fund	Return enhancement and hedging
Growth Strategy Fund	Return enhancement and hedging
Equity Growth Strategy Fund	Return enhancement and hedging

The Funds’ foreign currency contract notional dollar values outstanding fluctuate throughout the fiscal year as required to meet
strategic requirements. The following tables illustrate the quarterly volume of foreign currency contracts. For the purpose of this
disclosure, volume is measured by the amounts bought and sold in USD.

				Outstanding Contract Amounts Sold
Quarter Ended	March 31, 2017				June 30, 2017		September 30, 2017	December 31, 2017
Moderate Strategy Fund	$	13,798,537	$	13,799,206		$	14,647,976	$	6,081,175
Balanced Strategy Fund		58,336,356		64,149,195			81,241,095		37,651,194
Growth Strategy Fund		45,759,203		44,289,426			59,124,563		24,383,881
Equity Growth Strategy Fund		11,491,778		12,706,799			16,596,406		7,167,461
				Outstanding Contract Amounts Bought
Quarter Ended	March 31, 2017				June 30, 2017		September 30, 2017	December 31, 2017
Moderate Strategy Fund	$	13,833,191	$	13,765,445		$	14,631,286	$	6,037,115
Balanced Strategy Fund		58,393,681		63,904,265			81,320,354		37,281,544
Growth Strategy Fund		45,820,232		44,081,474			59,149,517		24,115,034
Equity Growth Strategy Fund		11,514,360		12,649,708			16,589,763		7,130,924

Options
The Funds may purchase and sell (write) call and put options on securities and securities indices. Such options are traded on a
national securities exchange or in an OTC market. The Funds may also purchase and sell (write) call and put options on foreign
currencies.

When a Fund writes a covered call or a put option, an amount equal to the premium received by the Fund is included in the Fund’s
Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-
to-market to reflect the current fair value of the option written. The Fund receives a premium on the sale of a call option but gives
up the opportunity to profit from any increase in the value of the underlying instrument above the exercise price of the option, and
when the Fund writes a put option it is exposed to a decline in the price of the underlying instrument.

When a Fund sells an uncovered call option, it does not simultaneously have a long position in the underlying security. When a
Fund sells an uncovered put option, it does not simultaneously have a short position in the underlying security. Uncovered options
are riskier than covered options because there is no underlying security held by the Fund that can act as a partial hedge.

Whether an option which the Fund has written expires on its stipulated expiration date or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss, if the cost of a closing purchase transaction exceeds the premium received when the
option was sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is
extinguished. If a call option which the Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the
underlying security, and the proceeds from such sale are increased by the premium originally received. When a put option which
a Fund has written is exercised, the amount of the premium originally received will reduce the cost of the security which a Fund
purchases upon exercise of the option.

The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Funds’ exposure to
market risk. The risks may be caused by an imperfect correlation between movements in the price of the instrument and the price
of the underlying securities and interest rates.

The Funds may enter into a swaption (an option on a swap). In a swaption, in exchange for an option, the buyer gains the right but
not the obligation to enter into a specified swap agreement with the issuer on a specified future date. The writer of the contract
receives the premium and bears the risk of unfavorable changes in the preset rate on the underlying swap.

For the period ended December 31, 2017, the Funds purchased or sold options primarily for the strategies listed below:

96 Notes to Financial Statements

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

Funds	Strategies
Moderate Strategy Fund	Return enhancement and hedging
Balanced Strategy Fund	Return enhancement and hedging
Growth Strategy Fund	Return enhancement and hedging
Equity Growth Strategy Fund	Return enhancement and hedging

The Funds’ options contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the outstanding notional of options contracts measured by notional in USD.

			Notional of Options Contracts Outstanding
Funds	March 31, 2017					June 30, 2017		September 30, 2017	December 31, 2017
Moderate Strategy Fund	$	9,723,277		$	9,393,008		$	10,500,000	$	16,317,500
Balanced Strategy Fund		49,940,648			37,976,742			43,500,000		65,805,000
Growth Strategy Fund		13,725,105			12,120,139			13,750,000		21,400,000
Equity Growth Strategy Fund		3,317,832			3,534,422			4,000,000		6,152,500

Futures Contracts
The Funds may invest in futures contracts (i.e., interest rate, foreign currency and index futures contracts). The face or contract
value of these instruments reflect the extent of the Funds’ exposure to off balance sheet risk. The primary risks associated with the
use of futures contracts are an imperfect correlation between the change in fair value of the securities held by the Funds and the
prices of futures contracts, and the possibility of an illiquid market. Upon entering into a futures contract, the Funds are required to
deposit with a broker an amount, termed the initial margin, which typically represents 5% to 10% of the purchase price indicated
in the futures contract. Payments to and from the broker, known as variation margin, are typically required to be made on a daily
basis as the price of the futures contract fluctuates. Changes in initial settlement value are accounted for as unrealized appreciation
(depreciation) until the contracts are terminated, at which time realized gains and losses are recognized.

For the period ended December 31, 2017, the following Funds entered into futures contracts primarily for the strategies listed
below:

Funds	Strategies
Moderate Strategy Fund	Return enhancement, hedging, and exposing cash to markets
Balanced Strategy Fund	Return enhancement, hedging, and exposing cash to markets
Growth Strategy Fund	Return enhancement, hedging, and exposing cash to markets
Equity Growth Strategy Fund	Return enhancement, hedging, and exposing cash to markets

The Funds' futures contracts notional amounts fluctuate throughout the fiscal year as required to meet strategic requirements. The
following table illustrates the quarterly volume of futures contracts measured by notional in USD.

			Notional of Futures Contracts Outstanding
Funds	March 31, 2017					June 30, 2017		September 30, 2017	December 31, 2017
Moderate Strategy Fund	$	23,436,061		$	25,226,183		$	28,883,988	$	28,998,395
Balanced Strategy Fund		57,539,789			44,373,491			48,446,094		45,995,345
Growth Strategy Fund		53,861,264			58,906,855			42,266,963		42,629,639
Equity Growth Strategy Fund		12,259,297			13,444,126			11,543,534		12,158,046
Swap Agreements

The Funds may enter into swap agreements, on either an asset-based or liability-based basis, depending on whether they are
hedging their assets or their liabilities, and will usually enter into swaps on a net basis (i.e., the two payment streams are netted
out, with the Funds receiving or paying only the net amount of the two payments). When a Fund engages in a swap, it exchanges
its obligations to pay or rights to receive payments for the obligations to pay or rights to receive payments of another party (i.e., an
exchange of floating rate payments for fixed rate payments).

The Funds may enter into several different types of swap agreements including credit default, interest rate, total return and currency
swaps. Credit default swaps are a counterparty agreement which allows the transfer of third party credit risk (the possibility that
an issuer will default on its obligation by failing to pay principal or interest in a timely manner) from one party to another. The
lender faces the credit risk from a third party and the counterparty in the swap agrees to insure this risk in exchange for regular
periodic payments. Interest rate swaps are a counterparty agreement, can be customized to meet each party’s needs, and involve
the exchange of a fixed or variable payment per period for a payment that is not fixed. Equity swaps are a counterparty agreement
where two parties exchange two sets of cash flows on predetermined dates for an agreed upon amount of time. The cash flows will

Notes to Financial Statements 97

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

typically be an equity index value swapped with a floating rate such as LIBOR plus or minus a pre-defined spread. Total return
swap agreements are a counterparty agreement intended to expose cash to markets or to effect investment transactions consistent
with those Funds’ investment objectives and strategies. Currency swaps are a counterparty agreement where two parties exchange
specified amounts of different currencies which are followed by each paying the other a series of interest payments that are based
on the principal cash flow. At maturity the principal amounts are returned.

The Funds generally expect to enter into these transactions primarily to preserve a return or spread on a particular investment or
portion of their portfolios or to protect against any increase in the price of securities they anticipate purchasing at a later date, or for
return enhancement. Under most swap agreements entered into by a Fund, the parties' obligations are determined on a "net basis".
The net amount of the excess, if any, of the Funds’ obligations over their entitlements with respect to each swap will be accrued on a
daily basis and an amount of cash or liquid assets having an aggregate NAV at least equal to the accrued excess will be segregated.
To the extent that the Funds enter into swaps on other than a net basis, the amount maintained in a segregated account will be the
full amount of the Funds’ obligations, if any, with respect to such swaps, accrued on a daily basis. If there is a default by the other
party to such a transaction, the Funds will have contractual remedies pursuant to the agreement related to the transaction.

A Fund may not receive the expected amount under a swap agreement if the other party to the agreement defaults or becomes
bankrupt.

Credit Default Swaps
The Funds may enter into credit default swaps. A credit default swap can refer to corporate issues, government issues, asset-backed
securities or an index of assets, each known as the reference entity or underlying asset. Funds may act as either the buyer or the
seller of a credit default swap involving one party making a stream of payments to another party in exchange for the right to receive a
specified return in the event of a default or other credit event. Depending upon the terms of the contract, the credit default swap may
be closed via physical settlement. However, due to the possible or potential instability in the market, there is a risk that the Funds
may be unable to deliver the underlying debt security to the other party to the agreement. Additionally, the Funds may not receive
the expected amount under the swap agreement if the other party to the agreement defaults or becomes bankrupt. In an unhedged
credit default swap, Funds enter into a credit default swap without owning the underlying asset or debt issued by the reference
entity. Credit default swaps allow Funds to acquire or reduce credit exposure to a particular issuer, asset or basket of instruments.

As the seller of protection in a credit default swap, a Fund would be required to pay the par or other agreed-upon value (or otherwise
perform according to the swap contract) of a reference debt obligation to the counterparty in the event of a default (or other specified
credit event) and the counterparty would be required to surrender the reference debt obligation. In return, the Fund would receive
from the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no
credit event occurs, the Fund would keep the stream of payments and would have no payment obligations. As a seller of protection,
the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, that Fund would be subject to
investment exposure on the notional amount of the swap.

The Funds may also purchase protection via credit default swap contracts in order to offset the risk of default of debt securities held
in their portfolios or to take a short position in a debt security, in which case the Fund would function as the counterparty referenced
in the preceding paragraph.

If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of
the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of
protection’s right to choose the deliverable obligation with the lowest value following a credit event). The Funds may use credit
default swaps to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where Funds own or have
exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood (as measured by the
credit default swap’s spread) of a particular issuer’s default.

Deliverable obligations for credit default swaps on asset-backed securities in most instances are limited to the specific referenced
obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown
or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These
reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap
agreement generally will be adjusted by corresponding amounts. The Funds may use credit default swaps on asset-backed securities
to provide a measure of protection against defaults (or other defined credit events) of the referenced obligation or to take an active
long or short position with respect to the likelihood of a particular referenced obligation’s default (or another defined credit event).

98 Notes to Financial Statements

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for
the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of
the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be
representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a
poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the
indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging
markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized
terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and
if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes
periodically, usually every six months, and, for most indices, each name has an equal weight in the index. Traders may use credit
default swaps on indices to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on
corporate issues as of period-end are disclosed in the Schedules of Investments and generally serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default (or other defined credit event) for the credit
derivative. The implied credit spread of a particular referenced entity reflects the cost of entering into a credit default swap and
may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-
backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of
the payment/performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional
amount of the swap, generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk
of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future
payments (undiscounted) that Funds as a seller of protection could be required to make under a credit default swap agreement
equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December
31, 2017, for which a Fund is the seller of protection are disclosed in the Schedules of Investments. These potential amounts would
be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the
agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for
the same referenced entity or entities.

Credit default swaps could result in losses if the Funds do not correctly evaluate the creditworthiness of the company or companies
on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Funds had invested
in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject
to illiquidity and counterparty risk. A Fund will generally incur a greater degree of risk when it sells a credit default swap than
when it purchases a credit default swap. As a buyer of a credit default swap, a Fund may lose its investment and recover nothing
should a credit event fail to occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event
were to occur, the value of any deliverable obligation received by a Fund, coupled with the upfront or periodic payments previously
received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.

If the creditworthiness of a Fund’s swap counterparty declines, the risk that the counterparty may not perform could increase,
potentially resulting in a loss to the Fund. To limit the counterparty risk involved in swap agreements, the Funds will only enter
into swap agreements with counterparties that meet certain standards of creditworthiness. Although there can be no assurance that
the Funds will be able to do so, the Funds may be able to reduce or eliminate their exposure under a swap agreement either by
assignment or other disposition, or by entering into an offsetting swap agreement with the same party or another creditworthy party.
The Funds may have limited ability to eliminate their exposure under a credit default swap if the credit quality of the reference
entity or underlying asset has declined.

For the period ended December 31, 2017, the Funds entered into credit default swaps primarily for the strategies listed below:

Funds	Strategies
Moderate Strategy Fund	Return enhancement, hedging and exposing cash to markets
Balanced Strategy Fund	Return enhancement, hedging and exposing cash to markets
Growth Strategy Fund	Return enhancement, hedging and exposing cash to markets
Equity Growth Strategy Fund	Return enhancement, hedging and exposing cash to markets

The Funds' credit default swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to meet
strategic requirements. The following table illustrates the quarterly volume of credit default swap contracts. For the purpose of this
disclosure, volume is measured by notional amounts outstanding in USD at each quarter end.

Notes to Financial Statements 99

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

			Credit Default Swap Notional Amounts Outstanding
Quarter Ended	March 31, 2017					June 30, 2017		September 30, 2017	December 31, 2017
Moderate Strategy Fund	$	6,500,000		$	6,500,000		$	7,900,000	$	7,768,000
Balanced Strategy Fund		22,700,061			22,700,000			26,200,000		15,105,000
Growth Strategy Fund		9,900,006			9,900,000			26,900,000		26,831,000
Equity Growth Strategy Fund			—			—		9,500,000		3,900,000

Total Return Swaps
The Funds may enter into total return swap agreements to expose cash to markets or to effect investment transactions. Total return
swap agreements are two party contracts entered into primarily by institutional investors for periods ranging from a few weeks to
more than one year. In a standard total return swap transaction, the two parties agree to exchange the returns (or differentials in
rates of return) earned or realized on particular investments or instruments.

The returns to be exchanged between the parties are calculated with respect to a “notional amount” (i.e., a specified dollar amount
that is hypothetically invested in a “basket” of securities representing a particular index).

For the period ended December 31, 2017, the Funds entered into total return swaps primarily for the strategies listed below:

Funds	Strategies
Moderate Strategy Fund	Return enhancement and hedging
Balanced Strategy Fund	Return enhancement and hedging
Growth Strategy Fund	Return enhancement and hedging
Equity Growth Strategy Fund	Return enhancement and hedging

The Funds' total return swap contract notional amounts outstanding fluctuate throughout the fiscal year as required to meet strategic
requirements. The following table illustrates the quarterly volume of total return swap contracts. For the purpose of this disclosure,
volume is measured by notional amounts outstanding in USD at each quarter end.

		Total Return Swap Notional Amounts Outstanding
Quarter Ended	March 31, 2017			June 30, 2017			September 30, 2017	December 31, 2017
Moderate Strategy Fund	$	—	$		9,295,423	$	10,498,000	$	10,699,981
Balanced Strategy Fund		—	37,599,304				42,999,189		43,299,987
Growth Strategy Fund		—	11,998,180				13,500,196		13,999,992
Equity Growth Strategy Fund		—	3,495,755				3,999,699		3,999,998

Master Agreements
The Funds are parties to International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”)
with counterparties that govern transactions in OTC derivative and foreign exchange contracts entered into by the Funds and
those counterparties. The ISDA Master Agreements contain provisions for general obligations, representations, agreements,
collateral and events of default or termination. Events of termination and default include conditions that may entitle either party
to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement.
Any election to terminate early could be material to the financial statements. Since different types of forward and OTC financial
derivative transactions have different mechanics and are sometimes traded out of different legal entities of a particular counterparty
organization, each type of transaction may be covered by a different ISDA Master Agreement, resulting in the need for multiple
agreements with a single counterparty. As the ISDA Master Agreements are specific to unique operations of different asset types,
they allow a Fund to net its total exposure to a counterparty in the event of a default with respect to all the transactions governed
under a single agreement with a counterparty.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern the considerations and factors
surrounding the settlement of certain forward settling transactions, such as delayed delivery by and between a Fund and select
counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment
and transfer, events of default, termination, and maintenance of collateral.

Disclosure about Offsetting Assets and Liabilities
Balance sheet disclosure is based on various netting agreements between brokers and counterparties, such as ISDA Master
Agreements and Master Forward Agreements. The Funds utilize multiple counterparties. The quantitative disclosure begins with
disaggregation of counterparties by legal entity and the roll up of the data to reflect a single counterparty in the table within the
100 Notes to Financial Statements

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

Funds’ financial statements. Net exposure represents the net receivable (payable) that would be due from/to the counterparty in the
event of default. Exposure from OTC derivatives can only be netted across transactions governed under the same Master Agreement
with the same legal entity.

Guarantees
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general
indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that
may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.

Market, Credit and Counterparty Risk
In the normal course of business, the Funds and Underlying Funds trade financial instruments and enter into financial transactions
where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform
(credit risk). Similar to credit risk, the Funds and Underlying Funds may also be exposed to counterparty risk or risk that an
institution or other entity with which the Funds or Underlying Funds have unsettled or open transactions will default. The potential
loss could exceed the value of the relevant assets recorded in the Funds' and Underlying Funds' financial statements (the “Assets”).
The Assets consist principally of cash due from counterparties and investments. The extent of the Funds' and Underlying Funds'
exposure to market, credit and counterparty risks with respect to the Assets approximates their carrying value as recorded in the
Funds' and Underlying Funds' Statements of Assets and Liabilities.

Global economies and financial markets are becoming increasingly interconnected and political and economic conditions (including
recent instability and volatility) and events (including natural disasters) in one country, region or financial market may adversely
impact issuers in a different country, region or financial market. As a result, issuers of securities held by a Fund or an Underlying
Fund may experience significant declines in the value of their assets and even cease operations. Such conditions and/or events may
not have the same impact on all types of securities and may expose a Fund or an Underlying Fund to greater market and liquidity
risk and potential difficulty in valuing portfolio instruments held. This could cause a Fund or an Underlying Fund to underperform
other types of investments.
3. Investment Transactions

Securities
During the period ended December 31, 2017, purchases and sales of investment securities (excluding short-term investments,
options and futures) were as follows:

		Purchases		Sales
Moderate Strategy Fund	$	21,813,707	$	22,621,696
Balanced Strategy Fund		100,299,694		108,999,592
Growth Strategy Fund		59,843,521		63,454,163
Equity Growth Strategy Fund		20,587,985		17,991,209

4. Related Party Transactions, Fees and Expenses

Adviser, Administrator, Transfer and Dividend Disbursing Agent
RIM provides or oversees the provision of all investment advisory and portfolio management services for the Funds, including
developing the investment program for each Fund and managing each Fund's overall exposures. RIFUS is the Funds' administrator
and transfer agent. RIFUS, in its capacity as the Funds' administrator, provides or oversees the provision of all administrative
services for the Funds. RIFUS, in its capacity as the Funds' transfer agent and dividend disbursing agent, is responsible for
providing transfer agency and dividend disbursing services to the Funds. RIFUS is a wholly-owned subsidiary of RIM. RIM is an
indirect, wholly-owned subsidiary of Russell Investments Group, Ltd., a Cayman company.

The Funds are permitted to invest their cash (i.e., cash awaiting investment or cash held to meet redemption requests or to pay
expenses) in the U.S. Cash Management Fund, an unregistered fund advised by RIM. As of December 31, 2017, the Funds had
invested $47,809 in the U.S. Cash Management Fund.

Notes to Financial Statements 101

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

An affiliated company is a company in which a Fund has ownership of at least 5% of the voting securities or which the Fund
controls, is controlled by or is under common control with. See each Fund’s Related Party Transactions, Fees and Expenses for
disclosure of transactions with affiliated companies.

The advisory fee of 0.20% is based upon the average daily net assets of each Fund and the administrative fee of up to 0.0425%
is based on the combined average daily net assets of the Funds. Advisory and administration fees are paid monthly. The following
table shows the total amount of each of these fees paid by the Funds for the period ended December 31, 2017:

		Advisory		Administrative
Moderate Strategy Fund	$	220,446	$	46,845
Balanced Strategy Fund		581,926		123,659
Growth Strategy Fund		425,041		90,321
Equity Growth Strategy Fund		104,345		22,173

RIM has agreed to certain waivers of its advisory fees as follows:

For the Moderate Strategy Fund, RIM has contractually agreed, until April 30, 2018, to waive up to the full amount of its 0.20%
advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses
exceed 0.14% of the average daily net assets of the Fund on an annual basis. Direct Fund-level expenses do not include extraordinary
expenses or the expenses of other investment companies in which the Fund invests, including the Underlying Funds, which are
borne indirectly by the Fund. This waiver and reimbursement may not be terminated during the relevant period except with Board
approval.

For the Balanced Strategy Fund, RIM has contractually agreed, until April 30, 2018, to waive up to the full amount of its 0.20%
advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses
exceed 0.14% of the average daily net assets of the Fund on an annual basis. Direct Fund-level expenses do not include extraordinary
expenses or the expenses of other investment companies in which the Fund invests, including the Underlying Funds, which are
borne indirectly by the Fund. This waiver and reimbursement may not be terminated during the relevant period except with Board
approval.

For the Growth Strategy Fund, RIM has contractually agreed, until April 30, 2018, to waive up to the full amount of its 0.20% advisory
fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level expenses exceed 0.15%
of the average daily net assets of the Fund on an annual basis. Direct Fund-level expenses do not include extraordinary expenses or
the expenses of other investment companies in which the Fund invests, including the Underlying Funds, which are borne indirectly
by the Fund. This waiver and reimbursement may not be terminated during the relevant period except with Board approval.

For the Equity Growth Strategy Fund, RIM has contractually agreed, until April 30, 2018, to waive up to the full amount of its
0.20% advisory fee and then to reimburse the Fund for other direct Fund-level expenses to the extent that direct Fund-level
expenses exceed 0.15% of the average daily net assets of the Fund on an annual basis. Direct Fund-level expenses do not include
extraordinary expenses or the expenses of other investment companies in which the Fund invests, including the Underlying Funds,
which are borne indirectly by the Fund. This waiver and reimbursement may not be terminated during the relevant period except
with Board approval.

For the period ended December 31, 2017, RIM waived/reimbursed the following expenses:

		Waiver	Reimbursement			Total
Moderate Strategy Fund	$	220,446	$	25,391	$	245,837
Balanced Strategy Fund		510,347		—		510,347
Growth Strategy Fund		375,147		—		375,147
Equity Growth Strategy Fund		104,345		47,122		151,467

RIM does not have the ability to recover amounts waived or reimbursed from previous periods.

102 Notes to Financial Statements

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Notes to Financial Statements, continued — December 31, 2017

Transfer and Dividend Disbursing Agent
RIFUS serves as transfer agent and provides dividend disbursing services to the Funds. For this service, RIFUS is paid a fee based
upon the average daily net assets of the Funds for transfer agency and dividend disbursing services. RIFUS retains a portion of this
fee for its services provided to the Funds and pays the balance to unaffiliated agents who assist in providing these services. Transfer
agency fees paid by the Funds presented herein for the period ended December 31, 2017 were as follows:

		Amount
Moderate Strategy Fund	$	4,850
Balanced Strategy Fund		12,802
Growth Strategy Fund		9,351
Equity Growth Strategy Fund		2,296

Distributor
Russell Investments Financial Services, LLC (the “Distributor”), a wholly-owned subsidiary of RIM, is the distributor for the
Investment Company pursuant to a distribution agreement with the Investment Company. The Distributor receives no compensation
from the Investment Company for its services.

Affiliated Brokerage Transactions
The Funds effect certain transactions through Russell Investments Implementation Services, LLC (“RIIS”). RIIS is a registered
broker and investment adviser and an affiliate of RIM. RIIS uses a multi-venue trade management approach whereby RIIS allocates
trades among RIIS’ network of independent brokers for execution, clearing and other services. RIM has authorized RIIS to effect
certain futures, swaps, OTC derivative transactions, and cleared swaps, including foreign currency spots, forwards and options
trading on behalf of the Funds.

Board of Trustees
The Russell Investments Fund Complex consists of RIC, which has 34 funds and RIF, which has 9 funds. Each of the Trustees is
a Trustee of RIC and RIF. The Russell Investments Fund Complex compensates each Trustee who is not an employee of RIM or
its affiliates. Trustee compensation and expenses are allocated to each Fund based on its net assets relative to other funds in the
Russell Investments Fund Complex.

For the period ended December 31, 2017, the regular compensation paid to the Trustees by the Russell Investments Fund Complex
was $1,394,250.
5. Federal Income Taxes
At December 31, 2017, none of the Funds had capital losses available for carryforwards.
6. Record Ownership
As of December 31, 2017, the following table includes shareholders of record with greater than 10% of the total outstanding shares
of each respective Fund.

	# of Shareholders		%
Moderate Strategy Fund		1	90.1
Balanced Strategy Fund		1	90.4
Growth Strategy Fund		2	97.8
Equity Growth Strategy Fund		2	97.1

7. Subsequent Events
Management has evaluated the events and /or transactions that have occurred through the date the financial statements were issued
and noted no events have occurred that require disclosure.

Notes to Financial Statements 103

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Russell Investment Funds and Shareholders of Moderate Strategy Fund, Balanced Strategy Fund, Growth
Strategy Fund and Equity Growth Strategy Fund

Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Moderate Strategy
Fund, Balanced Strategy Fund, Growth Strategy Fund and Equity Growth Strategy Fund (four of the funds constituting Russell
Investment Funds, hereafter collectively referred to as the “Funds”) as of December 31, 2017, the related statements of operations
for the year ended December 31, 2017, the statements of changes in net assets for each of the two years in the period ended
December 31, 2017, including the related notes, and the financial highlights for each of the five years in the period ended December
31, 2017 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material
respects, the financial position of each of the Funds as of December 31, 2017, the results of each of their operations for the year
then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2017 and each of
the financial highlights for each of the five years in the period ended December 31, 2017 in conformity with accounting principles
generally accepted in the United States of America.

Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the
Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our
procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the transfer agents and
brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinions.

We have served as the auditor of one or more investment companies in the Russell Investments family of funds since 1981.

104 Report of Independent Registered Public Accounting Firm

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Tax Information— December 31, 2017 (Unaudited)

For the tax year ended December 31, 2017, the Funds hereby designate 100% or the maximum amount allowable, of its net taxable
income as qualified dividends taxed at individual net capital gain rates.

The Form 1099 you receive in January 2018 will show the tax status of all distributions paid to your account in calendar year 2017.

The Funds designate dividends distributed during the fiscal year as qualifying for the dividends received deduction for corporate
shareholders as follows:

Moderate Strategy	7.2	%
Balanced Strategy	11.2	%
Growth Strategy	15.8	%
Equity Growth Strategy	16.7	%

Pursuant to Section 852 of the Internal Revenue Code, the Funds designate the following amounts as long-term capital gain
dividends for their taxable year ended December 31, 2017:

Moderate Strategy	$	1,062,756
Balanced Strategy	$	12,048,254
Growth Strategy	$	3,930,654
Equity Growth Strategy	$	793,264

Tax Information 105

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Shareholder Requests for Additional Information — December 31, 2017 (Unaudited)

A complete unaudited schedule of investments is made available generally no later than 60 days after the end of the first and third
quarters of each fiscal year. These reports are available (i) free of charge, upon request, by calling the Funds at (800) 787-7354; (ii)
on the Securities and Exchange Commission's website at www.sec.gov; and (iii) at the Securities and Exchange Commission’s Office of
Investor Education and Advocacy (formerly, the Public Reference room).

The Board has delegated to RIM, as RIF’s investment adviser, the primary responsibility for monitoring, evaluating and voting proxies
solicited by or with respect to issuers of securities in which assets of the Underlying Funds may be invested. RIM has established a proxy
voting committee and has adopted written proxy voting policies and procedures (“P&P”) and proxy voting guidelines (“Guidelines”).

The Funds maintain a Portfolio Holdings Disclosure Policy that governs the timing and circumstances of disclosure to shareholders
and third parties of information regarding the portfolio investments held by the Funds. A description of the P&P, Guidelines, Portfolio
Holdings Disclosure Policy and additional information about Fund Trustees are contained in the Funds’ Statement of Additional
Information (“SAI”). The SAI and information regarding how the Underlying Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30, 2017 are available (i) free of charge, upon request, by calling the Funds at (800) 787-
7354, and (ii) on the Securities and Exchange Commission's website at www.sec.gov.

If possible, depending on contract owner registration and address information, and unless you have otherwise opted out, only one copy
of the RIF prospectus and each annual and semi-annual report will be sent to contract owners at the same address. If you would like
to receive a separate copy of these documents, please contact your Insurance Company. If you currently receive multiple copies of the

prospectus, annual report and semi-annual report and would like to request to receive a single copy of these documents in the future,
please call your Insurance Company.

Some Insurance Companies may offer electronic delivery of the Funds’ prospectuses and annual and semi-annual reports. Please
contact your Insurance Company for further details.

Financial statements of the Underlying Funds can be obtained at no charge by calling the Funds at (800) 787-7354.

106 Shareholder Requests for Additional Information

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Disclosure of Information about Fund Trustees and Officers — December 31, 2017
(Unaudited)

The following tables provide information for each officer and trustee of the Russell Investments Fund Complex. The Russell Investments
Fund Complex consists of Russell Investment Company (“RIC”), which has 34 funds and Russell Investment Funds (“RIF”), which
has 9 funds. Each of the trustees is a trustee of RIC and RIF. The first table provides information for the interested trustee. The second
table provides information for the independent trustees. The third table provides information for the Trustee Emeritus. The fourth table
provides information for the officers. Furthermore, each Trustee possesses the following specific attributes: Mr. Alston has business,
financial and investment experience as a senior executive of an international real estate firm and is trained as a lawyer; Ms. Blake has
had experience as a certified public accountant and has had experience as a member of boards of directors/trustees of other investment
companies; Ms. Burgermeister has had experience as a certified public accountant and as a member of boards of directors/trustees of
other investment companies and has been determined by the Board to be an “audit committee financial expert”; Mr. Connealy has had
experience with other investment companies and their investment advisers, first as a partner in the investment management practice of
PricewaterhouseCoopers LLP and, subsequently, as the senior financial executive of two other investment organizations sponsoring and
managing investment companies; Ms. Krysty has had business, financial and investment experience as the founder and senior executive
of a registered investment adviser focusing on high net worth individuals as well as a certified public accountant and a member of the
boards of other corporations and non-profit organizations; Mr. Tennison has had business, financial and investment experience as a senior
executive of a corporation with international activities and was trained as an accountant; and Mr. Thompson has had experience in business,
governance, investment and financial reporting matters as a senior executive of an organization sponsoring and managing other investment
companies, and, subsequently, has served as a board member of other investment companies. Mr. Spina has had experience with other
financial services companies, including companies engaged in the sponsorship, management and distribution of investment companies.
As a senior officer and/or director of the Funds, the Adviser and various affiliates of the Adviser providing services to the Funds, Mr.
Spina is in a position to provide the Board with such parties' perspectives on the management, operations and distribution of the Funds.

Name,	Position(s) Held	Term	Principal Occupation(s)	No. of	Other
Age,	With Fund and	of	During the	Portfolios	Directorships
Address	Length of	Office *	Past 5 Years	in Russell	Held by Trustee
	Time Served			Investments	During the
				Fund	Past 5 Years
				Complex
				Overseen
				by Trustee
INTERESTED TRUSTEE
Mark Spina, #	Trustee since 2017	Appointed until	• President and CEO, RIC and RIF	43	None
Born June 8, 1970	President and Chief	successor is	• Chairman of the Board, President,
1301 Second Avenue,	Executive Officer	duly elected and	Russell Investments Financial
18th Floor, Seattle, WA	since 2017	qualified	Services, LLC (“RIFIS”)
98101		Appointed	• Director, RIM.
		until successor	• From 2015-2016, Head of
		is chosen and	Intermediary Distribution and
		qualified by	President of Pioneer Funds
		Trustees	Distributor
			• From 2008-2015 Head of
			Intermediary Distribution, Voya
			Investment Management
INDEPENDENT TRUSTEES
Thaddas L. Alston,	Trustee since 2006	Appointed until	Senior Vice President, Larco	43	Until October
Born April 7, 1945		successor is	Investments, Ltd. (real estate firm)		2015, Trustee,
1301 Second Avenue,		duly elected and			Russell
18th Floor, Seattle, WA		qualified			Exchange
98101					Traded Funds
					Trust

Disclosure of Information about Fund Trustees and Officers 107

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Disclosure of Information about Fund Trustees and Officers, continued — December
31, 2017 (Unaudited)

	Name,	Position(s) Held	Term	Principal Occupation(s)	No. of	Other
	Age,	With Fund and	of	During the	Portfolios	Directorships
	Address	Length of	Office *	Past 5 Years	in Russell	Held by Trustee
		Time Served			Investments	During the
					Fund	Past 5 Years
					Complex
					Overseen
					by Trustee
Kristianne Blake,		Trustee since 2000	Appointed until	• Lead Independent Director,	43	• Lead
Born January 22, 1954		Chairman since 2005	successor is	Avista Corp (electric utilities)		Independent
1301 Second Avenue,			duly elected and	• Until May 2017, Director		Director,
18th Floor, Seattle, WA			qualified	and Chairman of the Audit		Avista Corp
98101			Approved	Committee, Avista Corp (electric		(electric
			annually	utilities)		utilities)
				• Regent, University of Washington		• Until May
				• President, Kristianne Gates		2017,
				Blake, P. S. (accounting services)		Director,
				• Until June 30, 2014, Director,		Avista Corp
				Ecova (total energy and		(electric
				sustainability management)		utilities)
				• Until December 31, 2013, Trustee		• Until June
				and Chairman of the Operations		30, 2014,
				Committee, Principal Investors		Director,
				Funds and Principal Variable		Ecova (total
				Contracts Funds (investment		energy and
				company)		sustainability
						management)
						• Until
						December 31,
						2013, Trustee,
						Principal
						Investors
						Funds
						(investment
						company)
						• Until
						December 31,
						2013, Trustee
						Principal
						Variable
						Contracts
						Funds
						(investment
						company)
						• Until October
						2015, Trustee,
						Russell
						Exchange
						Traded Funds
						Trust
*	Each Trustee is subject to mandatory retirement at age 75.
#	Mr. Spina is also an officer and/or director of one or more affiliates of RIC and RIF and is therefore an Interested Trustee.

108 Disclosure of Information about Fund Trustees and Officers

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Disclosure of Information about Fund Trustees and Officers, continued — December
31, 2017 (Unaudited)

Name,	Position(s) Held	Term	Principal Occupation(s)	No. of	Other
Age,	With Fund and	of	During the	Portfolios	Directorships
Address	Length of	Office *	Past 5 Years	in Russell	Held by Trustee
	Time Served			Investments	During the
				Fund	Past 5 Years
				Complex
				Overseen
				by Trustee
INDEPENDENT TRUSTEES (continued)
Cheryl Burgermeister,	Trustee since 2012	Appointed until	• Retired	43	• Trustee and
Born June 26, 1951	Chairman of the	successor is	• Trustee and Chairperson of		Chairperson of
1301 Second Avenue,	Audit Committee	duly elected and	Select Sector SPDR Funds		Select Sector
18th Floor, Seattle, WA	since 2017	qualified	(investment company)		SPDR Funds
98101		Appointed until	• Until December 31, 2014,		(investment
		successor is	Chairperson of Audit Committee,		company)
		duly elected and	Select Sector SPDR Funds		• From August
		qualified	(investment company)		2012 through
					May 2016,
					Trustee, ALPS
					Series Trust
					(investment
					company)
					• Until
					December
					31, 2014,
					Chairperson
					of Audit
					Committee,
					Select Sector
					SPDR Funds
					(investment
					company)
					• Until October
					2015, Trustee,
					Russell
					Exchange
					Traded Funds
					Trust
Daniel P. Connealy,	Trustee since 2003	Appointed until	• Retired	43	Until October
Born June 6, 1946		successor is	• June 2004 to June 2014, Senior		2015, Trustee,
1301 Second Avenue,		duly elected and	Vice President and Chief		Russell
18th Floor, Seattle, WA		qualified	Financial Officer, Waddell &		Exchange
98101			Reed Financial, Inc. (investment		Traded Funds
			company)		Trust
Katherine W. Krysty,	Trustee since 2014	Appointed until	• Retired	43	Until October
Born December 3, 1951		successor is	• January 2011 through March		2015, Trustee,
1301 Second Avenue		duly elected and	2013, President Emerita, Laird		Russell
18th Floor, Seattle, WA		qualified	Norton Wealth Management		Exchange
98101			(investment company)		Traded Funds
					Trust

Disclosure of Information about Fund Trustees and Officers 109

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Disclosure of Information about Fund Trustees and Officers, continued — December
31, 2017 (Unaudited)

		Position(s) Held	Term	Principal Occupation(s)	No. of	Other
	Name,	With Fund and	of	During the	Portfolios	Directorships
	Age,	Length of	Office *	Past 5 Years	in Russell	Held by Trustee
	Address	Time Served			Investments	During the
					Fund	Past 5 Years
					Complex
					Overseen
					by Trustee
INDEPENDENT TRUSTEES (continued)
Raymond P. Tennison, Jr. ,		Trustee since 2000	Appointed until	• Retired	43	Until October
Born December 21, 1955		Chairman of	successor is	• From January 2008 to December		2015, Trustee,
1301 Second Avenue		the Nominating	duly elected and	2011, Vice Chairman of the		Russell
18th Floor, Seattle, WA		and Governance	qualified	Board, Simpson Investment		Exchange
98101		Committee since	Appointed until	Company (paper and forest		Traded Funds
		2007	successor is	products)		Trust
			duly elected and
			qualified
Jack R. Thompson,		Trustee since 2005	Appointed until	• Retired	43	• Until October
Born March 21, 1949		Chairman of	successor is			2015, Trustee,
1301 Second Avenue,		the Investment	duly elected and			Russell
18th Floor, Seattle, WA		Committee since	qualified			Exchange
98101		2015	Appointed until			Traded Funds
			successor is			Trust
			duly elected and
			qualified
*	Each Trustee is subject to mandatory retirement at age 75.
	Name,	Position(s) Held	Term	Principal Occupation(s)	No. of	Other
	Age,	With Fund and	of	During the	Portfolios	Directorships
	Address	Length of	Office	Past 5 Years	in Russell	Held by Trustee
		Time Served			Investments	During the
					Fund	Past 5 Years
					Complex
					Overseen
					by Trustee
TRUSTEE EMERITUS
George F. Russell, Jr. ,		Trustee Emeritus and	Until resignation	• Director Emeritus, RIM	43	None
Born July 3, 1932		Chairman Emeritus	or removal
1301 Second Avenue,		since 1999
18th Floor, Seattle, WA
98101

110 Disclosure of Information about Fund Trustees and Officers

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Disclosure of Information about Fund Trustees and Officers, continued — December
31, 2017 (Unaudited)

Name,	Positions(s) Held	Term	Principal Occupation(s)
Age,	With Fund and	of	During the
Address	Length of	Office	Past 5 Years
	Time Served
OFFICERS
Mark Spina,	President and Chief	Until successor	• President and Chief Executive Officer, RIC and RIF
Born June 8, 1970	Executive Officer	is chosen and	• Chairman of the Board, President, RIFIS.
1301 Second Avenue	since 2017	qualified by	• Chairman of the Board, RIFUS
18th Floor, Seattle, WA		Trustees	• Director, RIM
98101			• From 2015 to 2016, Head of Intermediary Distribution and President
			of Pioneer Funds Distributor
			• From 2008 to 2015, Head of Intermediary Distribution, Voya
			Investment Management
Cheryl Wichers,	Chief Compliance	Until removed	• Chief Compliance Officer, RIC and RIF
Born December 16, 1966	Officer since 2005	by Independent	• Chief Compliance Officer, RIFUS
1301 Second Avenue		Trustees	• 2011 to 2016 Chief Compliance Officer, U. S. One , LLC
18th Floor, Seattle, WA
98101
Mark E. Swanson,	Treasurer, Chief	Until successor	• Global Head of Fund Services, Russell Investments
Born November 26, 1963	Accounting Officer	is chosen and	• Treasurer, Chief Accounting Officer and CFO, RIC and RIF
1301 Second Avenue	and Chief Financial	qualified by	• Director and President, RIFUS
18th Floor, Seattle, WA	Officer since 1998	Trustees	• Director RIM, Russell Investments Trust Company (“RITC”) and
98101			RIFIS
			• President and Chief Executive Officer, RIC and RIF, June 2016 to
			June 2017
			• October 2011 to December 2013, Head of North America Operations
			Russell Investments
Jeffrey T. Hussey,	Chief Investment	Until removed by	• Global Chief Investment Officer, Russell Investments
Born May 2, 1969	Officer since 2013	Trustees	• Chief Investment Officer, RIC and RIF
1301 Second Avenue,			• Chairman of the Board and President, RIM
18th Floor, Seattle WA			• Director, RITC, Russell Investments Implementation Services, LLC
98101			and Russell Investments Delaware, LLC
			• Board of Managers, Russell Investments Funds Management, LLC
			• 2003 to 2013 Chief Investment Officer, Fixed Income, Russell
			Investments
Mary Beth R. Albaneze,	Secretary since 2010	Until successor	• Associate General Counsel, Russell Investments
Born April 25, 1969		is chosen and	• Secretary, RIM, RIFUS and RIFIS
1301 Second Avenue,		qualified by	• Secretary and Chief Legal Officer, RIC and RIF
18th Floor, Seattle, WA		Trustees	• Assistant Secretary, Russell Investments Insurance Agency, LLC
98101			(“RIIA”)(insurance agency) and U. S. One Inc.

Disclosure of Information about Fund Trustees and Officers 111

Russell Investment Funds
LifePoints^® Funds Variable Target Portfolio Series

Adviser and Service Providers — December 31, 2017 (Unaudited)

Interested Trustee
Mark Spina	Administrator, Transfer and Dividend Disbursing
Independent Trustees	Agent
Thaddas L. Alston	Russell Investments Fund Services, LLC
Kristianne Blake	1301 Second Avenue
Cheryl Burgermeister	Seattle, WA 98101
Daniel P. Connealy
Katherine W. Krysty	Custodian
Raymond P. Tennison, Jr.	State Street Bank and Trust Company
Jack R. Thompson	1 Heritage Drive
	North Quincy, MA 02171
Trustee George Emeritus F. Russell, Jr.	Office of Shareholder Inquiries
	1301 Second Avenue
Officers	Seattle, WA 98101
Mark Spina, President and Chief Executive Officer	(800) 787-7354
Mark E. Swanson, Treasurer, Chief Accounting Officer and
Chief Financial Officer	Legal Counsel
Cheryl Wichers, Chief Compliance Officer	Dechert LLP
Jeffrey T. Hussey, Chief Investment Officer	One International Place, 40th Floor
Mary Beth R. Albaneze, Secretary	100 Oliver Street
	Boston, MA 02110
Adviser Russell Investment Management, LLC	Distributor
1301 Second Avenue	Russell Investments Financial Services, LLC
Seattle, WA 98101	1301 Second Avenue
	Seattle, WA 98101
	Independent Registered Public Accounting Firm
	PricewaterhouseCoopers LLP
	1420 5th Avenue, Suite 2800
	Seattle, WA 98101

This report is prepared from the books and records of the Funds and is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless accompanied or preceded by an effective Prospectus. Nothing herein contained
is to be considered an offer of sale or a solicitation of an offer to buy shares of Russell Investment Funds. Such offering is made only by
Prospectus, which includes details as to offering price and other material information.

112 Adviser and Service Providers

Item 2. Code of Ethics. [Annual Report Only]

(a) As of the end of the period covered by the report, the registrant has adopted a code of ethics
that applies to the registrant's principal executive officer and principal financial officer
(“Code”).

(b) That Code comprises written standards that are reasonably designed to deter wrongdoing and
to promote:

1) honest and ethical conduct, including the ethical handling of actual or apparent
conflicts of interest between personal and professional relationships;

2) full, fair, accurate, timely and understandable disclosure in reports and documents
that a registrant files with, or submits to, the Securities and Exchange Commission
(“SEC”) and in other public communications made by each Mutual Fund;

3) compliance with applicable laws and governmental rules and regulations;

4) the prompt internal reporting to an appropriate person or persons identified in the
Code of violations of the Code; and

5) accountability for adherence to the Code.

(c) The Code was restated as of August 2015; the restatement did not involve any material
change.

(d) As of the end of the period covered by the report, there have been no waivers granted from a
provision of the Code that applies to the registrant’s principal executive officer and principal
financial officer.

(e) Not applicable.

(f) The registrant has filed with the SEC, pursuant to Item 12(a)(1), a copy of the Code that
applies to the registrant’s principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions, as an exhibit to its
annual report on this Form N-CSR.

Item 3. Audit Committee Financial Expert. [Annual Report Only]

Registrant's board of trustees has determined that the Registrant has at least one audit committee
financial expert serving on its audit committee. Cheryl Burgermeister has been determined to be
the Audit Committee Financial Expert and is also determined to be “independent” for purposes
of Item 3, paragraph (a)(2)(i) and (ii) of Form N-CSR.

Item 4. Principal Accountant Fees and Services. [Annual Report Only]
Audit Fees

(a) The aggregate fees billed for each of the last two fiscal years for professional services
rendered by the principal accountant for the audit of the registrant’s annual financial statements
or services that are normally provided by the accountant in connection with statutory and
regulatory filings or engagements for those fiscal years were as follows:

2016	$	263,210
2017	$	275,470

Audit-Related Fees

(b) The aggregate fees billed in each of the last two fiscal years for assurance and related
services by the principal accountant that are reasonably related to the performance of the audit of
the registrant’s financial statements and are not reported under paragraph (a) of this Item and the
nature of the services comprising those fees were as follows:

		Fees	Nature of Services
2016	$	93,996	Tax auditing services
2017	$	98,646	Tax auditing services

Tax Fees

(c) The aggregate fees billed in each of the last two fiscal years for professional services
rendered by the principal accountant for tax compliance, tax advice, and tax planning and the
nature of the services comprising the fees were as follows:

		Fees	Nature of Services
2016	$	79,262	Tax filing services
2017	$	83,225	Tax filing services

All Other Fees

(d) The aggregate fees billed in each of the last two fiscal years for products and services
provided by the principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item and the nature of the services comprising those fees were as follows:

		Fees	Nature of Services
2016	$	0
2017	$	0

(e) (1) Registrant’s audit committee has adopted the following pre-approval policies and
procedures for certain services provided by Registrant’s accountants:

Russell Investment Funds

Russell Investment Funds
Audit and Non-Audit Services Pre-Approval Policy
Effective Date: August 25, 2015

I. Statement of Purpose.

This Policy has been adopted by the joint Audit Committee (the “Audit Committee”) of Russell
Investment Company (“RIC”) and Russell Investment Funds (“RIF”) to apply to any and all
engagements of the independent auditor to RIC and RIF, respectively, for audit, non-audit, tax or
other services. The term “Fund” shall collectively refer to each series of RIC and RIF. The
term “Investment Adviser” shall refer to the Funds’ advisor, Russell Investment Management,
LLC (“RIM”). This Policy does not delegate to management the responsibilities set forth herein
for the pre-approval of services performed by the Funds’ independent auditor.

II. Statement of Principles.

Under the Sarbanes-Oxley Act of 2002 (the “Act”), the Audit Committee of the Funds’ Board of
Trustees (the “Audit Committee”) is charged with responsibility for the appointment,
compensation and oversight of the work of the independent auditor for the Funds. As part of
these responsibilities, the Audit Committee is required to pre-approve the audit services and
permissible non-audit services such as audit-related, tax and other services (“non-audit services”)
performed by the independent auditor for the Funds to assure that the independence of the
auditor is not in any way compromised or impaired. In determining whether an auditor is
independent in light of the services it provides to a Fund, there are three guiding principles under
the Act that must be considered. In general, the independence of the auditor to the Funds would
be deemed impaired if the auditor provides a service whereby it:

· Functions in the role of management of the Funds, the adviser of the Funds or any
other affiliate^* of the Funds;
· Is in the position of auditing its own work; or
· Serves in an advocacy role for the Funds, the adviser of the Funds or any other
affiliate of the Funds.

Accordingly, it is the Funds’ policy that the independent auditor for the Funds must not be
engaged to perform any service that contravenes any of the three guidelines set forth above, or
which in any way could be deemed to impair or compromise the independence of the auditor for
the Funds. This Policy is designed to accomplish those requirements and will henceforth be
applied to all engagements by the Funds of their independent auditor, whether for audit, audit-
related, tax, or other non-audit services.

^* For purposes of this Policy, an affiliate of the Funds is defined as the Funds’ investment adviser (but not a sub-
adviser whose role is primarily portfolio management and whose activities are overseen by the principal investment
adviser), and any entity controlling, controlled by, or under common control with the investment adviser that
provides ongoing services to the Fund.

Rules adopted by the United States Securities and Exchange Commission (the “SEC”) establish
two distinct approaches to the pre-approval of services by the Audit Committee. The proposed
services either may receive general pre-approval through adoption by the Audit Committee of a
list of authorized services for the fund, together with a budget of expected costs for those
services (“general pre-approval”), or specific pre-approval by the Audit Committee of all
services provided to the fund on a case-by-case basis (“specific pre-approval”).

The Funds’ Audit Committee believes that the combination of these two approaches reflected in
this Policy will result in an effective and efficient procedure for the pre-approval of permissible
services performed by the Funds’ independent auditor. The Funds’ Audit and Non-Audit Pre-
Approved Services Schedule lists the audit, audit-related, tax and other services that have the
general pre-approval of the Audit Committee. As set forth in this Policy, unless a particular
service has received general pre-approval, those services will require specific pre-approval by
the Audit Committee before any such services can be provided by the independent auditor. Any
proposed service to the Funds that exceeds the pre-approved budget for those services will also
require specific pre-approval by the appropriate Audit Committee.

In assessing whether a particular audit or non-audit service should be approved, the Audit
Committee will take into account the ratio between the total amounts paid for audit, audit-
related, tax and other services, based on historical patterns, with a view toward assuring that the
level of fees paid for non-audit services as they relate to the fees paid for audit services does not
compromise or impair the independence of the auditor. The Audit Committee will review the list
of general pre-approved services, including the pre-approved budget for those services, at least
annually and more frequently if deemed appropriate by the Audit Committee, and may
implement changes thereto from time to time.

III. Delegation.

As provided in the Act and in the SEC’s rules, the Audit Committee from time to time may
delegate either general or specific pre-approval authority to one or more of its members. Any
member to whom such authority is delegated must report any pre-approval decisions to the Audit
Committee at its next scheduled meeting.

IV. Audit Services.

The annual audit services engagement terms and fees for the independent auditor for the Funds
require specific pre-approval of the Audit Committee. Audit services include the annual
financial statement audit and other procedures required to be performed by the independent
auditor in order to be able to form an opinion on the financial statements for the Funds for that
year. These other procedures include reviews of information systems, procedural reviews and
testing performed in order to understand and rely on the Funds’ systems of internal control, and
consultations relating to the audit. Audit services also include the attestation engagement for the
independent auditor’s report on the report from management on financial reporting internal
controls. The Audit Committee will review the audit services engagement as necessary or
appropriate in the sole judgment of the Audit Committee.

In addition to the pre-approval by the Audit Committee of the annual engagement of the
independent auditor to perform audit services, the Audit Committee may grant general pre-
approval to other audit services, which are those services that only the independent auditor
reasonably can provide. These services are generally related to the issuance of an audit opinion,
and may include statutory audits and services associated with the Funds’ SEC registration
statement on Form N-1A, periodic reports and documents filed with or information requested by
the SEC or other regulatory or self-regulatory organizations, or other documents issued in
connection with the Funds’ securities offerings.

The Audit Committee has pre-approved the audit services set forth in Schedule A of the Audit
and Non-Audit Pre-Approved Services Schedule. All other audit services not listed in Schedule
A of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-
approved by the Audit Committee or its delegate.

V. Audit-Related Services.

Audit-related services are assurance and related services that are reasonably related to the
performance of the audit or review of the financial statements for the Funds, or the separate
financial statements for a series of the Funds that are traditionally performed by the independent
auditor. Because the Audit Committee believes that the provision of audit-related services does
not compromise or impair the independence of the auditor and is consistent with the SEC’s rules
on auditor independence, the Audit Committee may grant pre-approval to audit related services.
“Audit related services” include, among others, accounting consultations related to accounting,
financial reporting or disclosure matters not classified as “audit services;” assistance with
understanding and implementing new accounting and financial reporting or disclosure matters
not classified as “audit services;” assistance with understanding and implementing new
accounting and financial reporting guidance from rulemaking authorities; agreed upon or
expanded audit procedures related to accounting and/or billing records required to respond to or
comply with financial, accounting or regulatory reporting matters; and assistance with internal
reporting requirements, including those under Form N-SAR and Form N-CSR.

The Audit Committee has pre-approved the audit-related services set forth in Schedule B of the
Audit and Non-Audit Pre-Approved Services Schedule. All other audit-related services not
listed in Schedule B of the Audit and Non-Audit Pre-Approved Services Schedule must be
specifically pre-approved by the Audit Committee or its delegate.

VI. Tax Services.

The Audit Committee believes that the independent auditor can provide tax services to the
Funds, such as tax compliance, tax planning and tax advice, without impairing the auditor’s
independence and the SEC has stated that the independent auditor may provide such services.
Consequently, the Audit Committee believes that it may grant general pre-approval to those tax
services that have historically been provided by the auditor, that the Audit Committee has
reviewed and believes would not impair the independence of the auditor, and that are consistent
with the SEC’s rules on auditor independence. However, the Audit Committee will not permit
the retention of the independent auditor to provide tax advice in connection with any transaction

recommended by the independent auditor, the sole business purpose of which may be tax
avoidance and the tax treatment of which may not be supported by the United States Internal
Revenue Code and related regulations or the applicable tax statutes and regulations that apply to
the Funds’ investments outside the United States. The Audit Committee will consult with the
Treasurer of the Funds or outside counsel to determine that the Funds’ tax planning and reporting
positions are consistent with this policy.

The Audit Committee has pre-approved the tax services set forth in Schedule C of the Audit and
Non-Audit Pre-Approved Services Schedule. All other tax services not listed in Schedule C of
the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by
the Audit Committee or its delegate.

VII. All Other Services.

The Audit Committee believes, based on the SEC’s rules prohibiting the independent auditor
from providing specific non-audit services, that other types of non-audit services are permitted.
Accordingly, the Audit Committee believes that it may grant general pre-approval to those
permissible non-audit services classified as “all other” services that the Audit Committee
believes are routine and recurring services, would not impair or compromise the independence of
the auditor and are consistent with the SEC’s rules on auditor independence.

The Audit Committee has pre-approved the permissible “all other services” set forth in Schedule
D of the Audit and Non-Audit Pre-Approved Services Schedule. Permissible “all other services”
not listed in Schedule D of the Audit and Non-Audit Pre-Approved Services Schedule must be
specifically pre-approved by the Audit Committee or its delegate.

A list of the SEC’s prohibited non-audit services are as follows:

· Bookkeeping or other services relating to the accounting records or financial statements
of the Funds

· Financial information system design and implementation

· Appraisal or valuation services, fairness opinions or contribution-in-kind reports

· Actuarial services

· Internal audit outsourcing services

· Management functions

· Human resources services

· Broker-dealer, investment adviser or investment banking services

· Legal services unrelated to the audit

· Expert services unrelated to the audit

The SEC’s rules and relevant official interpretations and guidance should be consulted to
determine the scope of these prohibited services and the applicability of any exceptions to certain
of the prohibitions. Under no circumstance may an executive, manager or associate of the
Funds, or the Investment Adviser, authorize the independent auditor for the Funds to provide
prohibited non-audit services.

VIII. De Minimis Waiver.

In accordance with the Act and SEC regulations, notwithstanding anything in this Policy to the
contrary, the pre-approval requirements of this Policy are waived with respect to the provision of
non-audit services that are permissible for an independent auditor to perform, provided:

(a) The aggregate amount of all such services provided constitutes no more than five
percent of the total amount of fees paid by RIC or RIF, as applicable, to the
independent auditor during the fiscal year in which the services were provided;

(b) Such services were not recognized by the Funds at the time of the engagement to
be non-audit services requiring pre-approval by the Audit Committee or its
delegate; and

(c) Such services are promptly brought to the attention of the Audit Committee and
approved by the Audit Committee or its delegate prior to the completion of the
audit, pursuant to the pre-approval provisions of this Policy.

In connection with the approval of any non-audit service pursuant to this de minimis exception, a
record shall be made indicating that each of the conditions for this exception has been satisfied.

IX. Pre-Approval Fee Levels or Budgeted Amounts.

Pre-approved fee levels or budgeted amounts for all services to be provided by the independent
auditor will be established annually by the Audit Committee and shall be subject to periodic
subsequent review during the year if deemed appropriate by the Audit Committee (separate
amounts may be specified for the Funds and for other affiliates in the investment company
complex subject to pre-approval). Any proposed services exceeding these levels or amounts will
require specific pre-approval by the Audit Committee. The Audit Committee will be mindful of
the overall relationship of fees for audit and non-audit services in determining whether to pre-
approve any such services. For each fiscal year, the Audit Committee may determine the
appropriateness of the ratio between the total amount of fees for audit, audit-related, and tax
services for the Funds (including any audit-related or tax services fees for affiliates subject to
pre-approval), and the total amount of fees for certain permissible non-audit services classified as
“all other services” for the Funds (including any such services for affiliates subject to pre-
approval by the Audit Committee or its delegate).

X. Procedures.

All requests or applications for services to be provided by the independent auditor that do not
require specific pre-approval by the Audit Committee will be submitted to the “RIC/RIF
Clearance Committee” (the “Clearance Committee”) (which shall be comprised of not less than
three members, including the Treasurer of the Funds who shall serve as its Chairperson) and
must include a detailed description of the services to be rendered and the estimated costs of those
services. The Clearance Committee will determine whether such services are included within the
list of services that have received general pre-approval by the Audit Committee. The Audit
Committee will be informed not less frequently than quarterly by the Chairperson of the
Clearance Committee of any such services rendered by the independent auditor for the Funds and
the fees paid to the independent auditors for such services.

Requests or applications to provide services that require specific pre-approval by the Audit
Committee will be submitted to the Audit Committee by both the independent auditor and the
Clearance Committee and must include a joint certification by the engagement partner of the
independent auditor and the Chairperson of the Clearing Committee that, in their view, the
request or application does not involve a prohibited non-audit service and is consistent with the
SEC’s rules governing auditor independence.

The Internal Audit Department of Russell Investments Group, Ltd., the parent company of RIM,
and the officers of RIC and RIF will report to the Chairman of the Audit Committee any breach
of this Policy that comes to the attention of the Internal Audit Department of Russell Investments
Group, Ltd. or an officer of RIC or RIF.

XI. Additional Requirements.

The Audit Committee has determined to take additional measures on an annual basis to meet its
responsibility to oversee the work performed by the independent auditor and to assure the
independent auditor’s continuing independence from the Funds and their affiliates, including
Russell Investments Group, Ltd. Such efforts will include, but not be limited to, reviewing a
written annual statement from the independent auditor delineating all relationships between the
independent auditor and RIC, RIF and Russell Investments Group, Ltd. and their subsidiaries and
affiliates, consistent with the Public Company Accounting Oversight Board’s Independence
Standards Board Standard No. 1, and discussing with the independent auditor its methods and
procedures for ensuring its independence.

(e) (2) The percentage of services described in each of paragraphs (b) through (d) of this Item
that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X is as follows:

Audit Fees	0	%
Audit-Related Fees	0	%
Tax Fees	0	%

All Other Fees 0 %

(f) For services, 50 percent or more of which were pre-approved, the percentage of hours
expended on the principal accountant’s engagement to audit the registrant’s financial statements
for the most recent fiscal year that were attributed to work performed by persons other than the
principal accountant’s full-time, permanent employees was 0%.

(g) The aggregate non-audit fees billed by registrant’s accountant for services rendered to the
registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant for each of the last two fiscal years of the
registrant were as follows:

2016	$	0
2017	$	0

(h) The registrant’s audit committee of the board of trustees has considered whether the
provision of nonaudit services that were rendered to the registrant’s investment adviser (not
including any subadviser whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity controlling, controlled by, or
under common control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation
S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants. [Not Applicable]

Item 6. [Schedules of Investments are included as part of the Report to Shareholders filed
under Item 1 of this form]

Items 7-9. [Not Applicable]

Item 10. Submission of Matters to a Vote of Security Holders

There have been no changes to the procedures by which shareholders may recommend
nominees to the Registrant’s Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures

(a) Registrant's principal executive officer and principal financial officer have concluded
that Registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under
the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation
of these controls and procedures as of a date within 90 days of the date this report is filed
with the Securities and Exchange Commission.

(b) There were no significant changes in Registrant's internal control over financial
reporting that occurred during the period covered by this report that has materially
affected or is likely to materially affect Registrant's internal control over financial
reporting.

Item 12. Exhibit List

(a) Registrant’s code of ethics described in Item 2

(b) Certification for principal executive officer of Registrant as required by Rule 30a-2(a)
under the Act and certification for principal financial officer of Registrant as required by
Rule 30a-2(a) under the Act.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Russell Investment Funds

By: /s/ Mark Spina
Mark Spina
President and Chief Executive Officer, Russell Investment Funds

Date: February 15, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

By: /s/ Mark E. Swanson
Mark E. Swanson
Treasurer, Chief Accounting Officer and Chief Financial Officer, Russell Investment
Funds

Date: February 15, 2018