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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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 18th Floor, Seattle Washington 98101
(Address of principal executive offices) (Zip code)
Mary Beth R. Albaneze, Secretary and Chief Legal Officer
Russell Investment Funds
1301 2nd Avenue
18th 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, 2019 to June 30, 2019
Item 1. Reports to Stockholders
2019
SEMI-ANNUAL
REPORT
Russell
Investment
Funds
JUNE
30,
2019
FUND
U.S.
Strategic
Equity
Fund
U.S.
Small
Cap
Equity
Fund
International
Developed
Markets
Fund
Strategic
Bond
Fund
Global
Real
Estate
Securities
Fund
Beginning
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
paper
copies
of
the
Funds’
annual
and
semi-annual
shareholder
reports
like
this
one
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
supported
by
your
financial
professional
or
variable
annuity
provider,
you
may
elect
to
receive
shareholder
reports
and
other
Fund
communications
electronically.
Please
contact
your
financial
professional
or
variable
annuity
provider
for
more
information.
You
may
elect
to
receive
all
future
shareholder
reports
in
paper
free
of
charge.
Please
contact
your
financial
professional
or
variable
annuity
provider
to
inform
them
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports.
Your
election
to
receive
reports
in
paper
will
apply
to
all
Russell
Investment
Funds
and
other
funds
you
hold
with
your
financial
professional
or
variable
annuity
provider.
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.
Page
U.S.
Strategic
Equity
Fund
3
U.S.
Small
Cap
Equity
Fund
19
International
Developed
Markets
Fund
45
Strategic
Bond
Fund
67
Global
Real
Estate
Securities
Fund
127
Notes
to
Schedule
of
Investments
145
Notes
to
Financial
Highlights
148
Notes
to
Financial
Statements
149
Affiliated
Brokerage
Transactions
168
Basis
for
Approval
of
Investment
Advisory
Agreement
169
Shareholder
Requests
for
Additional
Information
181
Disclosure
of
Information
about
Fund
Trustees
and
Officers
182
Adviser,
Money
Managers
and
Service
Providers
187
Russell
Investment
Funds
Semi-annual
Report
June
30,
2019
(Unaudited)
Table
of
Contents
Russell
Investment
Funds
Copyright
©
Russell
Investments
2019.
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.
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.
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.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
U.S.
Strategic
Equity
Fund
3
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2019
$
1,200
.60
$
1,020
.58
Expenses
Paid
During
Period*
$
4
.64
$
4
.26
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.85%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
4
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
94.3%
Consumer
Discretionary
-
15.3%
Amazon.com,
Inc.(Æ)
1,620
3,068
Aramark
7,331
264
Best
Buy
Co.,
Inc.
4,742
331
Bright
Horizons
Family
Solutions,
Inc.(Æ)
1,559
235
Brunswick
Corp.
5,397
248
Carnival
Corp.
3,338
155
Carter's,
Inc.
2,068
202
CBS
Corp.
Class
B
3,691
184
Charter
Communications,
Inc.
Class
A(Æ)
17,139
6,773
Choice
Hotels
International,
Inc.
3,017
263
Comcast
Corp.
Class
A
17,203
727
Costco
Wholesale
Corp.
2,775
733
Dollar
General
Corp.
25,847
3,493
Dollar
Tree,
Inc.(Æ)
79,644
8,553
DR
Horton,
Inc.
36,722
1,584
eBay,
Inc.
29,381
1,161
Extended
Stay
America,
Inc.
20,500
346
Garmin,
Ltd.
2,496
199
General
Motors
Co.
94,184
3,629
Grand
Canyon
Education,
Inc.(Æ)
1,913
224
Hasbro,
Inc.
64,008
6,764
Home
Depot,
Inc.
(The)
4,703
978
Interpublic
Group
of
Cos.,
Inc.
(The)
11,292
255
Las
Vegas
Sands
Corp.
2,733
161
Liberty
Global
PLC
Class
A(Æ)
35,213
950
Liberty
Global
PLC
Class
C(Æ)
199,989
5,306
Liberty
Media
Corp.-Liberty
SiriusXM
Class
A(Æ)
4,607
174
Liberty
SiriusXM
Group
Class
C(Æ)
5,113
194
Macy's,
Inc.
7,883
169
Magna
International,
Inc.
Class
A(Ñ)
36,390
1,809
Mohawk
Industries,
Inc.(Æ)
16,801
2,478
Netflix,
Inc.(Æ)
4,363
1,603
Norwegian
Cruise
Line
Holdings,
Ltd.(Æ)
20,021
1,074
Omnicom
Group,
Inc.
2,604
213
Penske
Automotive
Group,
Inc.
7,078
335
PulteGroup,
Inc.
52,862
1,671
Ross
Stores,
Inc.
2,048
203
Royal
Caribbean
Cruises,
Ltd.
2,133
259
Skechers
U.S.A.,
Inc.
Class
A(Æ)
6,001
189
Tapestry,
Inc.
5,818
185
Target
Corp.
3,723
322
Tiffany
&
Co.
3,223
302
TJX
Cos.,
Inc.
6,848
362
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Tractor
Supply
Co.
1,959
213
TripAdvisor,
Inc.(Æ)
103,977
4,813
Ulta
Salon
Cosmetics
&
Fragrance,
Inc.(Æ)
781
271
Vail
Resorts,
Inc.
1,140
254
Viacom,
Inc.
Class
B
6,398
191
Walmart,
Inc.
8,120
897
Walt
Disney
Co.
(The)
4,409
616
Williams-Sonoma,
Inc.(Ñ)
7,564
492
Yum
China
Holdings,
Inc.
3,907
181
66,256
Consumer
Staples
-
4.9%
Altria
Group,
Inc.
8,973
425
Archer-Daniels-Midland
Co.
13,276
542
Coca-Cola
Co.
(The)
18,596
947
Constellation
Brands,
Inc.
Class
A
30,286
5,964
CVS
Health
Corp.
47,029
2,563
Ingredion,
Inc.
13,266
1,094
JM
Smucker
Co.
(The)
2,418
279
Kraft
Heinz
Co.
(The)
3,589
111
Molson
Coors
Brewing
Co.
Class
B
49,993
2,800
Mondelez
International,
Inc.
Class
A
12,303
663
Monster
Beverage
Corp.(Æ)
5,359
342
PepsiCo,
Inc.
993
130
Philip
Morris
International,
Inc.
2,234
175
Post
Holdings,
Inc.(Æ)
2,139
222
Procter
&
Gamble
Co.
(The)
15,537
1,704
Tyson
Foods,
Inc.
Class
A
34,390
2,777
Walgreens
Boots
Alliance,
Inc.
5,379
294
21,032
Energy
-
6.6%
Anadarko
Petroleum
Corp.
7,622
538
BP
PLC
-
ADR
91,686
3,823
Canadian
Natural
Resources,
Ltd.
130,604
3,522
Chevron
Corp.
33,115
4,122
Cimarex
Energy
Co.
3,119
185
Concho
Resources,
Inc.
1,990
205
ConocoPhillips
35,587
2,171
Continental
Resources,
Inc.(Æ)
5,846
246
Devon
Energy
Corp.
5,803
166
Exxon
Mobil
Corp.
24,913
1,909
Halliburton
Co.
75,986
1,728
HollyFrontier
Corp.
5,211
241
Marathon
Petroleum
Corp.
12,569
702
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
5
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
PBF
Energy,
Inc.
Class
A
9,268
290
Phillips
66
8,639
808
Royal
Dutch
Shell
PLC
Class
B
-
ADR(Ñ)
38,162
2,509
Schlumberger,
Ltd.
103,404
4,109
Targa
Resources
Corp.
11,042
434
Valero
Energy
Corp.
8,426
721
28,429
Financial
Services
-
21.2%
Aflac,
Inc.
6,387
350
Alliance
Data
Systems
Corp.
2,119
297
Allstate
Corp.
(The)
3,568
363
American
Express
Co.
6,974
861
Ameriprise
Financial,
Inc.
3,373
490
Annaly
Capital
Management,
Inc.(ö)
205,728
1,878
Apple
Hospitality
REIT,
Inc.(ö)
23,369
371
Banco
Santander
SA
-
ADR(Ñ)
331,428
1,518
Bank
of
America
Corp.
139,525
4,046
Bank
of
New
York
Mellon
Corp.
(The)
31,094
1,373
Berkshire
Hathaway,
Inc.
Class
B(Æ)
27,409
5,843
Blackstone
Group,
LP
(The)
40,412
1,795
Broadridge
Financial
Solutions,
Inc.
4,147
529
Capital
One
Financial
Corp.
3,256
295
Charles
Schwab
Corp.
(The)
116,142
4,668
Chubb,
Ltd.
4,386
646
Citigroup,
Inc.
94,983
6,652
CME
Group,
Inc.
Class
A
26,889
5,219
Comerica,
Inc.
5,286
384
Crown
Castle
International
Corp.(ö)
21,258
2,771
Discover
Financial
Services
3,220
250
E*Trade
Financial
Corp.
33,198
1,481
Equinix
,
Inc.(Æ)(ö)
1,390
701
Fidelity
National
Information
Services,
Inc.
3,560
437
FleetCor
Technologies,
Inc.(Æ)
2,801
787
Global
Payments,
Inc.
3,952
633
Goldman
Sachs
Group,
Inc.
(The)
814
167
Host
Hotels
&
Resorts,
Inc.(ö)
9,213
168
Jack
Henry
&
Associates,
Inc.
4,285
574
JPMorgan
Chase
&
Co.
53,856
6,021
KeyCorp
22,751
404
KKR
&
Co.,
Inc.
Class
A
354,704
8,962
Lincoln
National
Corp.
2,742
177
M&T
Bank
Corp.
1,471
250
MasterCard,
Inc.
Class
A
30,078
7,956
Medical
Properties
Trust,
Inc.
10,262
179
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
MFA
Financial,
Inc.
60,626
435
Morgan
Stanley
10,225
448
Northern
Trust
Corp.
3,608
325
Park
Hotels
&
Resorts,
Inc.(ö)
13,686
377
PayPal
Holdings,
Inc.(Æ)
56,911
6,514
PNC
Financial
Services
Group,
Inc.
(The)
3,270
449
Prudential
Financial,
Inc.
3,811
385
Raymond
James
Financial,
Inc.
4,261
360
SLM
Corp.
77,467
753
Starwood
Property
Trust,
Inc.
10,667
242
State
Street
Corp.
6,730
377
SunTrust
Banks,
Inc.
6,518
410
Synchrony
Financial
10,463
363
Total
System
Services,
Inc.
4,095
525
Travelers
Cos.,
Inc.
(The)
214
32
Two
Harbors
Investment
Corp.
59,930
759
US
Bancorp
13,903
729
Visa,
Inc.
Class
A
44,830
7,780
Wells
Fargo
&
Co.
22,046
1,043
91,802
Health
Care
-
13.3%
Agilent
Technologies,
Inc.
5,840
436
Anthem,
Inc.(Æ)
5,794
1,635
AstraZeneca
PLC
-
ADR
27,190
1,122
Baxter
International,
Inc.
5,260
431
Becton
Dickinson
and
Co.
2,263
570
Biogen,
Inc.(Æ)
13,430
3,141
Bristol-Myers
Squibb
Co.
22,803
1,034
Cardinal
Health,
Inc.
3,560
168
Celgene
Corp.(Æ)
4,188
387
Centene
Corp.(Æ)
12,108
635
Cerner
Corp.
5,815
426
Cigna
Corp.
9,482
1,494
Eli
Lilly
&
Co.
4,350
482
Encompass
Health
Corp.(Æ)
4,959
314
Gilead
Sciences,
Inc.
18,993
1,283
HCA
Healthcare,
Inc.
3,327
450
Horizon
Therapeutics
PLC
Ltd.
Co.(Æ)
48,983
1,179
Humana,
Inc.
2,173
576
Illumina,
Inc.(Æ)
11,572
4,260
IQVIA
Holdings,
Inc.(Æ)
61,173
9,842
Jazz
Pharmaceuticals
PLC(Æ)
8,287
1,181
Johnson
&
Johnson
26,843
3,739
Laboratory
Corp.
of
America
Holdings(Æ)
5,257
909
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
6
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
McKesson
Corp.
2,967
399
MEDNAX,
Inc.(Æ)
7,256
183
Medtronic
PLC
27,069
2,636
Merck
&
Co.,
Inc.
12,342
1,035
Mylan
NV(Æ)
54,627
1,040
Pfizer,
Inc.
109,855
4,759
Quest
Diagnostics,
Inc.
2,522
257
Regeneron
Pharmaceuticals,
Inc.(Æ)
1,398
438
Stryker
Corp.
1,716
353
United
Therapeutics
Corp.(Æ)
329
26
UnitedHealth
Group,
Inc.
30,854
7,529
Universal
Health
Services,
Inc.
Class
B
3,074
401
Vertex
Pharmaceuticals,
Inc.(Æ)
726
133
WellCare
Health
Plans,
Inc.(Æ)
1,069
305
Zimmer
Biomet
Holdings,
Inc.
13,542
1,594
Zoetis,
Inc.
Class
A
5,949
675
57,457
Materials
and
Processing
-
5.1%
Ball
Corp.
98,594
6,900
Crown
Holdings,
Inc.(Æ)
39,216
2,396
Dow
Chemical
Co.
(The)
9,346
461
DuPont
de
Nemours,
Inc.
9,509
714
Eastman
Chemical
Co.
20,221
1,574
Ecolab,
Inc.
8,046
1,589
Freeport-McMoRan,
Inc.
73,255
850
Huntsman
Corp.
39,454
806
Ingersoll-Rand
PLC
1,985
251
LyondellBasell
Industries
NV
Class
A
3,398
293
Newmont
Mining
Corp.
62,484
2,403
Nucor
Corp.
8,267
456
Reliance
Steel
&
Aluminum
Co.
3,054
289
Royal
Gold,
Inc.
5,875
602
Silgan
Holdings,
Inc.
6,460
198
Steel
Dynamics,
Inc.
5,982
181
Westrock
Co.
50,905
1,857
21,820
Producer
Durables
-
4.3%
3M
Co.
1,529
265
Accenture
PLC
Class
A
2,459
454
AerCap
Holdings
NV(Æ)
36,957
1,923
American
Airlines
Group,
Inc.
92,527
3,018
Automatic
Data
Processing,
Inc.
3,836
634
Boeing
Co.
(The)
1,853
675
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Booz
Allen
Hamilton
Holding
Corp.
Class
A
5,917
392
Carlisle
Cos.,
Inc.
2,402
337
CoStar
Group,
Inc.(Æ)
1,144
634
Danaher
Corp.
3,676
525
Delta
Air
Lines,
Inc.
5,060
287
Eaton
Corp.
PLC
8,483
706
General
Dynamics
Corp.
2,471
449
HEICO
Corp.
5,608
750
Honeywell
International,
Inc.
3,015
526
Huntington
Ingalls
Industries,
Inc.
1,385
311
Johnson
Controls
International
PLC(Æ)
10,431
431
Kirby
Corp.(Æ)
3,991
315
L3
Technologies,
Inc.
1,981
486
McGraw
Hill
Financial,
Inc.
1,696
386
Northrop
Grumman
Corp.
2,070
669
Paychex,
Inc.
6,631
546
Raytheon
Co.
3,376
587
Roper
Technologies,
Inc.
1,100
403
Southwest
Airlines
Co.
5,792
294
Textron,
Inc.
4,290
228
United
Technologies
Corp.
13,469
1,754
Waters
Corp.(Æ)
1,784
384
18,369
Technology
-
20.3%
Adobe,
Inc.(Æ)
2,457
724
Alibaba
Group
Holding,
Ltd.
-
ADR
14,289
2,421
Alphabet,
Inc.
Class
A(Æ)
6,848
7,414
Alphabet,
Inc.
Class
C(Æ)
1,712
1,851
Amdocs,
Ltd.
9,477
588
Amphenol
Corp.
Class
A
5,065
486
Ansys
,
Inc.(Æ)
2,581
529
Apple,
Inc.
19,909
3,940
Applied
Materials,
Inc.
130,778
5,873
Arista
Networks,
Inc.(Æ)
15,686
4,072
Arrow
Electronics,
Inc.(Æ)
4,342
309
Autodesk,
Inc.(Æ)
37,278
6,073
Broadcom,
Inc.
2,212
637
Cisco
Systems,
Inc.
44,094
2,413
Citrix
Systems,
Inc.
3,833
376
Cognizant
Technology
Solutions
Corp.
Class
A
9,514
603
Corteva
,
Inc.
32,144
950
Dell
Technologies,
Inc.
Class
C(Æ)
17,800
904
DXC
Technology
Co.
3,665
202
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
7
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
F5
Networks,
Inc.(Æ)
1,834
267
Facebook,
Inc.
Class
A(Æ)
28,812
5,561
Genpact
,
Ltd.
13,286
506
Hewlett
Packard
Enterprise
Co.
Class
H
18,235
273
HP,
Inc.(Æ)
34,806
724
Intel
Corp.
11,794
565
International
Business
Machines
Corp.
3,640
502
Intuit,
Inc.
1,323
346
IPG
Photonics
Corp.(Æ)
8,734
1,347
Juniper
Networks,
Inc.
16,668
444
Lam
Research
Corp.
892
168
Leidos
Holdings,
Inc.
4,285
342
Marvell
Technology
Group,
Ltd.
95,420
2,278
Micron
Technology,
Inc.(Æ)
44,862
1,731
Microsoft
Corp.
158,015
21,167
MKS
Instruments,
Inc.
2,873
224
Monolithic
Power
Systems,
Inc.
1,286
175
NVIDIA
Corp.
15,729
2,583
ON
Semiconductor
Corp.(Æ)
7,859
159
Oracle
Corp.
7,648
436
Red
Hat,
Inc.(Æ)
1,749
328
Salesforce.com,
Inc.(Æ)
3,663
556
Synopsys,
Inc.(Æ)
3,344
430
Take-Two
Interactive
Software,
Inc.(Æ)
50,548
5,739
Teradyne,
Inc.
3,751
180
Texas
Instruments,
Inc.
414
48
VMware,
Inc.
Class
A
1,502
251
Western
Digital
Corp.
4,563
217
87,912
Utilities
-
3.3%
American
Water
Works
Co.,
Inc.
1,718
199
AT&T,
Inc.
166,489
5,580
Avangrid
,
Inc.
3,657
185
CenterPoint
Energy,
Inc.
15,700
449
CNX
Resources
Corp.(Æ)
20,226
148
Consolidated
Edison,
Inc.
5,859
514
DTE
Energy
Co.
1,470
188
Duke
Energy
Corp.
7,791
687
Evergy
,
Inc.
13,297
800
Eversource
Energy(Æ)
2,559
194
Exelon
Corp.
28,003
1,343
GCI
Liberty,
Inc.
Class
A(Æ)
10,353
636
NextEra
Energy,
Inc.
965
198
Pinnacle
West
Capital
Corp.
1,968
185
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
PPL
Corp.
20,516
636
Sempra
Energy
1,458
200
Southern
Co.
(The)
3,469
192
Verizon
Communications,
Inc.
20,433
1,167
Vistra
Energy
Corp.
14,053
318
WEC
Energy
Group,
Inc.(Æ)
7,375
615
14,434
Total
Common
Stocks
(cost
$375,425)
407,511
Short-Term
Investments
-
5.6%
U.S.
Cash
Management
Fund
(@)
24,146,957
(∞)
24,157
Total
Short-Term
Investments
(cost
$24,154)
24,157
Other
Securities
-
1.1%
U.S.
Cash
Collateral
Fund(×)(@)
4,541,186
(∞)
4,541
Total
Other
Securities
(cost
$4,541)
4,541
Total
Investments
101.0%
(identified
cost
$404,120)
436,209
Other
Assets
and
Liabilities,
Net
-
(1.0%)
(4,227)
Net
Assets
-
100.0%
431,982
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
8
U.S.
Strategic
Equity
Fund
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
S&P
500
E-Mini
Index
Futures
48
USD
7,066
09/19
117
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
117
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Common
Stocks
Consumer
Discretionary
$
66,256
$
—
$
—
$
—
$
66,256
15.3
Consumer
Staples
21,032
—
—
—
21,032
4.9
Energy
28,429
—
—
—
28,429
6.6
Financial
Services
91,802
—
—
—
91,802
21.2
Health
Care
57,457
—
—
—
57,457
13.3
Materials
and
Processing
21,820
—
—
—
21,820
5.1
Producer
Durables
18,369
—
—
—
18,369
4.3
Technology
87,912
—
—
—
87,912
20.3
Utilities
14,434
—
—
—
14,434
3.3
Short-Term
Investments
—
—
—
24,157
24,157
5.6
Other
Securities
—
—
—
4,541
4,541
1.1
Total
Investments
407,511
—
—
28,698
436,209
101.0
Other
Assets
and
Liabilities,
Net
(1.0)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
117
—
—
—
117
—*
Total
Other
Financial
Instruments
**
$
117
$
—
$
—
$
—
$
117
*
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
June
30,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
9
ts
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
117
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
1,134
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
354
*
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.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
3,903
$
—
$
3,903
Total
Financial
and
Derivative
Assets
3,903
—
3,903
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
3,903
$
—
$
3,903
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Barclays
$
2,397
$
—
$
—
$
2,397
Citigroup
1,350
—
—
1,350
Merrill
Lynch
156
—
—
156
Total
$
3,903
$
—
$
—
$
3,903
*
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.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
11
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
404,120
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
436,209
Receivables:
Dividends
and
interest
.......................................................................................................................................................
459
Dividends
from
affiliated
funds
..........................................................................................................................................
32
Fund
shares
sold
................................................................................................................................................................
1
From
broker(a)
...................................................................................................................................................................
217
Variation
margin
on
futures
contracts
.................................................................................................................................
117
Prepaid
expenses
...........................................................................................................................................................................
2
Total
assets
.................................................................................................................................................
437,037
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
149
Accrued
fees
to
affiliates
....................................................................................................................................................
273
Other
accrued
expenses
.....................................................................................................................................................
92
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
4,541
Total
liabilities
.............................................................................................................................................
5,055
Net
Assets
............................................................................................................................................................
$
431,982
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
U.S.
Strategic
Equity
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
55,68
8
Shares
of
beneficial
interest
...........................................................................................................................................................
278
Additional
paid-in
capital
..............................................................................................................................................................
376,01
6
Net
Assets
............................................................................................................................................................
$
431,982
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
15.55
Net
assets
...............................................................................................................................................................................
$
431,981,657
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
27,784,653
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
3,903
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
28,698
(a)
Receivable
from
Broker
for
Futures
$
217
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
13
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
3,656
Dividends
from
affiliated
funds
.........................................................................................................................................
177
Securities
lending
income
(net)
.........................................................................................................................................
280
Total
investment
income
...............................................................................................................................................................
4
,
113
Expenses
Advisory
fees
....................................................................................................................................................................
1,516
Administrative
fees
...........................................................................................................................................................
104
Custodian
fees
...................................................................................................................................................................
41
Transfer
agent
fees
............................................................................................................................................................
9
Professional
fees
...............................................................................................................................................................
47
Trustees’
fees
....................................................................................................................................................................
7
Printing
fees
......................................................................................................................................................................
31
Miscellaneous
...................................................................................................................................................................
1
1
Total
expenses
...............................................................................................................................................................................
1,766
Net
investment
income
(loss)
........................................................................................................................................................
2,347
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
29,543
Investments
in
affiliated
funds
..........................................................................................................................................
4
Futures
contracts
..............................................................................................................................................................
1,134
Net
realized
gain
(loss)
..................................................................................................................................................................
30,681
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
41,52
7
Investments
in
affiliated
funds
..........................................................................................................................................
4
Futures
contracts
..............................................................................................................................................................
354
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
41,885
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
72,566
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
74,913
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
14
U.S.
Strategic
Equity
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
2,347
$
4,199
Net
realized
gain
(loss)
......................................................................................................................
30,681
63,766
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
41,885
(107,106)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
74,913
(39,141)
Distributions
To
shareholders
.................................................................................................................................
(5,456)
(85,895)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(5,456)
(85,895)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(17,051)
42,885
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
52,406
(82,151)
Net
Assets
Beginning
of
period
.................................................................................................................................
379,576
461,727
End
of
period
..........................................................................................................................................
$
431,982
$
379,576
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
286
$
4,167
255
$
4,570
Proceeds
from
reinvestment
of
distributions
369
5,456
6,333
85,89
5
Payments
for
shares
redeemed
(1,802)
(26,674)
(2,574)
(47,58
0
)
Total
increase
(decrease)
(1,147)
$
(17,051)
4,014
$
42,885
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
16
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2019(1)
13.12
.08
2.54
2.62
(.04)
(.15)
December
31,
2018
18.53
.17
(1.97)
(1.80)
(.21)
(3.40)
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
17
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d
)
(.19)
15.55
20.06
431,982
.85
.85
1.13
68
(3.61)
13.12
(9.64)
379,576
.84
.84
.93
150
(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
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
18
U.S.
Strategic
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
253,734
Administration
fees
17,379
Transfer
agent
fees
1,529
$
272,642
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
U.S.
Cash
Management
Fund
$
17,324
$
53,040
$
46,215
$
4
$
4
$
24,157
$
177
$
—
U.S.
Cash
Collateral
Fund
9,290
44,604
49,353
—
—
4,541
134
—
$
26,614
$
97,644
$
95,568
$
4
$
4
$
28,698
$
311
$
—
Cost
of
Investments
$
405,967,464
Unrealized
Appreciation
$
38,446,122
Unrealized
Depreciation
(8,087,753)
Net
Unrealized
Appreciation
(Depreciation)
$
30,358,369
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
U.S.
Small
Cap
Equity
Fund
19
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2019
$
1,162
.30
$
1,019
.29
Expenses
Paid
During
Period*
$
5
.95
$
5
.56
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.11%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
20
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
100.0%
Consumer
Discretionary
-
13.1%
Aaron's,
Inc.
Class
A(Û)
9,538
586
Abercrombie
&
Fitch
Co.
Class
A
3,455
55
Adtalem
Global
Education,
Inc.(Æ)
8,625
389
Advanced
Energy
Industries,
Inc.(Æ)
1,969
111
AH
Belo
Corp.
Class
A
5,630
21
Amerco
,
Inc.(Ð)
130
49
American
Axle
&
Manufacturing
Holdings,
Inc.(Æ)(Ð)
8,500
108
American
Eagle
Outfitters,
Inc.
4,781
81
American
Public
Education,
Inc.(Æ)
13,099
387
Aspen
Group,
Inc.(Æ)
34,543
131
B.
Riley
Financial,
Inc.
34,532
720
Bassett
Furniture
Industries,
Inc.
1,300
20
Bed
Bath
&
Beyond,
Inc.(Ñ)
8,387
97
Big
Lots,
Inc.
4,109
118
BJ's
Wholesale
Club
Holdings,
Inc.(Æ)
12,987
343
Bloomin
'
Brands,
Inc.(Û)
36,292
686
BMC
Stock
Holdings,
Inc.(Æ)
9,100
193
Boot
Barn
Holdings,
Inc.(Æ)
7,094
253
Cable
One,
Inc.(Û)
806
944
Callaway
Golf
Co.
7,128
122
Care.com,
Inc.(Æ)(Ð)
600
7
Career
Education
Corp.(Æ)
13,026
248
Carriage
Services,
Inc.
Class
A
12,393
236
Carrols
Restaurant
Group,
Inc.(Æ)
1,300
12
Cavco
Industries,
Inc.(Æ)
3,403
536
Central
Garden
&
Pet
Co.
Class
A(Æ)
10,668
263
Century
Casinos,
Inc.(Æ)
35,097
340
Century
Communities,
Inc.(Æ)
7,566
201
Cheesecake
Factory,
Inc.
(The)
2,106
92
Chegg
,
Inc.(Æ)
16,719
645
Chico's
FAS,
Inc.
38,641
130
Children's
Place,
Inc.
(The)
1,118
107
Churchill
Downs,
Inc.
1,760
203
Chuy's
Holdings,
Inc.(Æ)
13,103
301
Conn's,
Inc.(Æ)
25,478
454
Cooper
Tire
&
Rubber
Co.
4,462
141
Cooper-Standard
Holdings,
Inc.(Æ)
5,200
238
Cracker
Barrel
Old
Country
Store,
Inc.
269
46
CSS
Industries,
Inc.(Û)
664
3
Cumulus
Media,
Inc.
Class
A(Æ)(Ñ)
27,878
517
Dana
Holding
Corp.
3,360
67
Deckers
Outdoor
Corp.(Æ)
705
124
Del
Taco
Restaurants,
Inc.(Æ)
34,838
447
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Delta
Apparel,
Inc.(Æ)
19,154
444
Designer
Brands,
Inc.
Class
A
1,434
27
Diversified
Restaurant
Holdings,
Inc.(Æ)
37,870
28
Dorman
Products,
Inc.(Æ)
1,305
114
Eldorado
Resorts,
Inc.(Æ)(Ñ)
24,729
1,138
Express,
Inc.(Æ)
18,801
51
Fiesta
Restaurant
Group,
Inc.(Æ)
3,600
47
Fitbit,
Inc.
Class
A
-
ADR(Æ)(Û)
16,400
72
Five
Below,
Inc.(Æ)
1,753
210
Fortress
Transportation
&
Infrastructure
Investors
LLC
52,015
785
Fossil
Group,
Inc.(Æ)(Ð)
2,600
30
Foundation
Building
Materials,
Inc.(Æ)
500
9
Fox
Factory
Holding
Corp.(Æ)
3,826
316
Francesca's
Holdings
Corp.(Ñ)
158,747
79
Full
House
Resorts,
Inc.(Æ)
28,953
54
Funko
,
Inc.
Class
A(Æ)(Ñ)
14,136
342
Genesco,
Inc.(Æ)
12,343
522
G-III
Apparel
Group,
Ltd.(Æ)
1,937
57
Goodyear
Tire
&
Rubber
Co.
(The)
8,200
125
Graham
Holdings
Co.
Class
B
400
276
Grand
Canyon
Education,
Inc.(Æ)
3,026
354
HealthStream
,
Inc.(Æ)(Û)
1,700
44
Hemisphere
Media
Group,
Inc.
Class
A
(Æ)
(Û)
1,000
13
Hibbett
Sports,
Inc.(Æ)
7,727
141
Hooker
Furniture
Corp.
1,200
25
International
Speedway
Corp.
Class
A
2,427
109
IntriCon
Corp.(Æ)
12,595
294
J
Alexander's
Holdings,
Inc.(Æ)
26,808
301
Jack
in
the
Box,
Inc.(Û)
10,442
850
John
Wiley
&
Sons,
Inc.
Class
A(Ð)
4,170
191
K12,
Inc.(Æ)(Û)
6,300
192
Kontoor
Brands,
Inc.(Æ)
7,192
202
Lands'
End,
Inc.(Æ)
1,900
23
La-Z-Boy,
Inc.
Class
Z
2,940
90
Lear
Corp.(Ð)
430
60
Lee
Enterprises,
Inc.(Æ)
65,773
147
LGI
Homes,
Inc.(Æ)(Ñ)
3,018
216
Libbey
,
Inc.(Æ)
48,660
90
Liberty
Braves
Group
Class
C(Æ)(Ð)
600
17
Lifetime
Brands,
Inc.
19,719
187
Lovesac
Co.
(The)(Æ)
7,059
219
Madison
Square
Garden
Co.
(The)
Class
A(Æ)
1,000
280
Marchex
,
Inc.
Class
B(Æ)
4,300
20
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
21
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Marriott
Vacations
Worldwide
Corp.
1,175
113
MDC
Partners,
Inc.
Class
A(Æ)
55,164
139
Murphy
USA,
Inc.(Æ)(Ð)
900
76
Nautilus,
Inc.(Æ)
4,600
10
New
Home
Co.,
Inc.
(The)(Æ)
200
1
New
York
Times
Co.
(The)
Class
A
4,017
131
News
Corp.
Class
A(Ð)
5,700
77
Noodles
&
Co.
Class
A(Æ)
25,869
204
NVR,
Inc.(Æ)
88
297
Ollie's
Bargain
Outlet
Holdings,
Inc.(Æ)
3,138
273
OptimizeRx
Corp.(Æ)
18,086
293
Oxford
Industries,
Inc.
980
74
PetIQ
,
Inc.(Æ)(Ñ)
20,045
661
Planet
Fitness,
Inc.
Class
A(Æ)
7,419
537
Pool
Corp.
6,266
1,196
QuinStreet
,
Inc.(Æ)
18,731
297
Red
Lion
Hotels
Corp.(Æ)
26,142
186
Regis
Corp.(Æ)(Ð)
2,500
42
Rent-A-Center,
Inc.
Class
A(Æ)
900
24
Rosetta
Stone,
Inc.(Æ)
2,100
48
Ruth's
Hospitality
Group,
Inc.
2,600
59
Sally
Beauty
Holdings,
Inc.(Æ)(Ñ)
32,770
437
Scholastic
Corp.
5,435
180
Scientific
Games
Corp.
Class
A(Æ)(Ð)
500
10
Shoe
Carnival,
Inc.(Ñ)
2,777
77
Sportsman's
Warehouse
Holdings,
Inc.(Æ)
16,748
63
Stamps.com,
Inc.(Æ)
2,361
107
Standard
Motor
Products,
Inc.
11,870
538
Steven
Madden,
Ltd.
5,233
178
Strategic
Education,
Inc.(Æ)
6,606
1,175
Sturm
Ruger
&
Co.,
Inc.
2,315
126
Superior
Uniform
Group,
Inc.
25,802
442
Systemax,
Inc.
12,497
277
TEGNA,
Inc.
9,100
138
Telaria
,
Inc.(Æ)
12,210
92
Texas
Roadhouse,
Inc.
Class
A
2,656
143
Tile
Shop
Holdings,
Inc.
60,613
242
Tilly's,
Inc.
Class
A
700
5
TiVo
Corp.(Ð)
18,800
139
Tower
International,
Inc.
24,408
476
Town
Sports
International
Holdings,
Inc.(Æ)
900
2
TravelCenters
of
America
LLC(Æ)
63,131
229
Travelzoo
,
Inc.(Æ)(Û)
400
6
TRI
Pointe
Group,
Inc.(Æ)
7,047
84
Viad
Corp.(Ð)
1,800
119
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Vista
Outdoor,
Inc.(Æ)(Ð)
8,900
79
Visteon
Corp.(Æ)(Û)
3,900
228
Whirlpool
Corp.
170
24
WideOpenWest
,
Inc.(Æ)
1,400
10
World
Wrestling
Entertainment,
Inc.
Class
A(Ð)
200
14
YETI
Holdings,
Inc.(Æ)(Ñ)
10,174
295
Zumiez
,
Inc.(Æ)
1,609
42
30,278
Consumer
Staples
-
2.9%
Calavo
Growers,
Inc.(Ñ)
8,105
784
Casey's
General
Stores,
Inc.
4,846
756
Core-Mark
Holding
Co.,
Inc.
22,250
883
Energizer
Holdings,
Inc.(Ñ)
16,838
651
Farmer
Brothers
Co.(Æ)
20,675
338
Fresh
Del
Monte
Produce,
Inc.
17,495
471
Helen
of
Troy,
Ltd.(Æ)
716
94
Herbalife
Nutrition,
Ltd.(Æ)(Ð)
1,900
81
J&J
Snack
Foods
Corp.
4,037
650
National
Beverage
Corp.
1,200
54
Nomad
Foods,
Ltd.(Æ)
44,163
943
Nu
Skin
Enterprises,
Inc.
Class
A
2,000
99
Performance
Food
Group
Co.(Æ)
3,100
124
Post
Holdings,
Inc.(Æ)
500
52
Primo
Water
Corp.(Æ)
6,563
81
Quanex
Building
Products
Corp.
4,700
89
Simply
Good
Foods
Co.
(The)(Æ)
13,482
325
SpartanNash
Co.
4,300
50
Spectrum
Brands
Holdings,
Inc.
600
32
US
Foods
Holding
Corp.(Æ)(Ð)
5,740
205
6,762
Energy
-
3.7%
Algonquin
Power
&
Utilities
Corp.
65,377
792
Arch
Coal,
Inc.
Class
A
4,424
416
Berry
Petroleum
Corp.
2,700
29
C&J
Energy
Services,
Inc.(Æ)(Ð)
10,600
125
Callon
Petroleum
Co.(Æ)
22,213
146
Carrizo
Oil
&
Gas,
Inc.(Æ)
12,305
123
CONSOL
Energy,
Inc.(Æ)
300
8
CVR
Energy,
Inc.(Ð)
300
15
Delek
US
Holdings,
Inc.
15,073
611
Exterran
Corp.(Æ)
4,600
65
FTS
International,
Inc.(Æ)
1,400
8
Gulf
Island
Fabrication,
Inc.(Æ)
200
1
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
22
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Gulfport
Energy
Corp.(Æ)
48,040
236
HollyFrontier
Corp.
4,100
190
Keane
Group,
Inc.(Æ)
6,900
46
KLX
Energy
Services
Holdings,
Inc.(Æ)
13,999
286
Laredo
Petroleum,
Inc.(Æ)
22,383
65
Luxfer
Holdings
PLC
-
ADR
36,658
899
Matador
Resources
Co.(Æ)
15,167
302
Matrix
Service
Co.(Æ)
20,200
409
McDermott
International,
Inc.(Æ)(Ñ)
40,538
392
Natural
Gas
Services
Group,
Inc.(Æ)
11,105
183
Newpark
Resources,
Inc.(Æ)
32,231
239
NextEra
Energy
Partners,
LP
200
10
Ormat
Technologies,
Inc.
1,412
90
Par
Pacific
Holdings,
Inc.(Æ)
7,500
154
PBF
Energy,
Inc.
Class
A(Ð)
3,900
122
Peabody
Energy
Corp.
12,108
292
Phillips
66
Partners,
LP
11,620
573
ProPetro
Holding
Corp.(Æ)
2,269
47
REX
American
Resources
Corp.(Æ)
400
29
RigNet
,
Inc.(Æ)
5,046
51
SEACOR
Holdings,
Inc.(Æ)(Ð)
1,180
56
SM
Energy
Co.
1,400
18
Solaris
Oilfield
Infrastructure,
Inc.
Class
A
13,981
209
Southwestern
Energy
Co.(Æ)
19,111
60
SunCoke
Energy,
Inc.
44,741
397
Superior
Energy
Services,
Inc.(Æ)
80,848
105
TETRA
Technologies,
Inc.(Æ)
167,447
273
Unit
Corp.(Æ)
15,597
139
World
Fuel
Services
Corp.(Û)
10,341
371
8,582
Financial
Services
-
25.5%
1st
Source
Corp.
2,100
97
Alleghany
Corp.(Æ)
300
204
American
Equity
Investment
Life
Holding
Co.
8,616
234
American
Homes
4
Rent
Class
A(Ð)
9,800
238
Americold
Realty
Trust(Ñ)
19,788
642
Ameris
Bancorp
10,214
400
Amerisafe
,
Inc.
8,256
526
Apartment
Investment
&
Management
Co.
Class
A(ö)
1,600
80
Argo
Group
International
Holdings,
Ltd.
2,043
151
Arrow
Financial
Corp.
400
14
Artisan
Partners
Asset
Management,
Inc.
Class
A(Ð)
1,400
39
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Associated
Banc-Corp.(Û)
5,500
116
Atlantic
Capital
Bancshares,
Inc.(Æ)
18,392
315
Atlantic
Union
Bankshares
Corp.(Æ)
3,548
125
Axis
Capital
Holdings,
Ltd.
6,300
376
Axos
Financial,
Inc.
4,331
118
BancFirst
Corp.
1,000
56
BancorpSouth
Bank
3,321
96
Bank
of
America
Corp.
200
14
Bank
OZK
22,040
663
BankFinancial
Corp.
1,800
25
Banner
Corp.(Û)
13,062
707
Baycom
Corp.(Æ)
1,200
26
BBCN
Bancorp,
Inc.
5,123
71
Braemar
Hotels
&
Resorts,
Inc.(ö)(Û)
1,700
17
Brighthouse
Financial,
Inc.(Æ)
12,640
464
Brightsphere
Investment
Group(Æ)
8,100
92
Brixmor
Property
Group,
Inc.(ö)
11,880
212
Business
First
Bancshares,
Inc.(Û)
300
8
Byline
Bancorp,
Inc.(Æ)
10,991
210
Cadence
Bancorp
11,487
239
Camden
National
Corp.
1,000
46
Camden
Property
Trust(Ð)(ö)(Û)
4,600
480
Cannae
Holdings,
Inc.(Æ)
41,134
1,192
Capital
City
Bank
Group,
Inc.
13,862
345
Cathay
General
Bancorp
2,829
102
CBTX,
Inc.
1,500
42
CenterState
Bank
Corp.
8,401
193
Central
Pacific
Financial
Corp.
26,738
801
Century
Bancorp,
Inc.
Class
A
2,037
179
Chemical
Financial
Corp.
2,153
89
Chemung
Financial
Corp.
100
5
Civista
Bancshares,
Inc.
5,046
113
Clipper
Realty,
Inc.(Û)
600
7
CNB
Financial
Corp.
600
17
CNO
Financial
Group,
Inc.
5,870
98
Cohen
&
Steers,
Inc.
16,166
832
Columbia
Banking
System,
Inc.
3,455
125
Columbia
Property
Trust,
Inc.(ö)
15,600
324
Community
Bank
System,
Inc.
1,949
128
Consolidated-
Tomoka
Land
Co.
4,560
272
CoreCivic
,
Inc.(Æ)
5,500
114
CorePoint
Lodging,
Inc.
4,500
56
CoreSite
Realty
Corp.
Class
A
300
35
Cousins
Properties,
Inc.(ö)
5,162
187
Cowen
Group,
Inc.
Class
A(Æ)(Ñ)
23,870
410
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
23
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Cullen/Frost
Bankers,
Inc.
2,500
234
CVB
Financial
Corp.
1,738
37
CyrusOne
,
Inc.
14,433
833
DiamondRock
Hospitality
Co.(ö)
9,660
100
Donegal
Group,
Inc.
Class
A
100
2
Douglas
Emmett,
Inc.(ö)(Û)
10,900
434
Eagle
Bancorp,
Inc.
2,937
159
East
West
Bancorp,
Inc.
4,900
229
eHealth,
Inc.(Æ)
3,179
274
Elevate
Credit,
Inc.(Æ)
1,000
4
Employers
Holdings,
Inc.(Û)
3,284
139
Enova
International,
Inc.(Æ)
1,500
35
Enstar
Group,
Ltd.(Æ)
443
77
Enterprise
Financial
Services
Corp.
1,553
65
Equity
Commonwealth
13,550
441
Equity
LifeStyle
Properties,
Inc.
Class
A(ö)
300
36
Erie
Indemnity
Co.
Class
A(Ð)
1,030
262
Essent
Group,
Ltd.(Æ)
9,774
459
Essential
Properties
Realty
Trust,
Inc.
36,494
731
Euronet
Worldwide,
Inc.(Æ)
1,834
309
Evercore
,
Inc.
Class
A(Û)
8,415
746
Everest
Re
Group,
Ltd.
2,000
494
FactSet
Research
Systems,
Inc.(Ð)
923
264
FB
Financial
Corp.
2,360
86
Federal
Agricultural
Mortgage
Corp.
Class
C
8,103
589
Federated
Investors,
Inc.
Class
B
5,125
167
FGL
Holdings
18,894
159
Fifth
Third
Bancorp
6,075
169
First
American
Financial
Corp.
4,200
226
First
BanCorp
(Û)
34,973
472
First
Bancshares,
Inc.
1,000
30
First
Defiance
Financial
Corp.
500
14
First
Financial
Bancorp
3,297
80
First
Financial
Bankshares
,
Inc.
3,810
117
First
Foundation,
Inc.
35,946
483
First
Hawaiian,
Inc.
7,100
184
First
Industrial
Realty
Trust,
Inc.
4,185
154
First
Interstate
BancSystem
,
Inc.
Class
A
9,551
378
First
Midwest
Bancorp,
Inc.
6,025
123
Flagstar
Bancorp,
Inc.
1,507
50
Forestar
Group,
Inc.(Æ)
338
7
Forrester
Research,
Inc.
1,253
59
Franklin
Street
Properties
Corp.(Ð)
5,200
38
Fulton
Financial
Corp.
9,462
155
Gaming
and
Leisure
Properties,
Inc.(Ð)
2,100
82
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Genworth
Financial,
Inc.
Class
A(Æ)
31,008
115
Glacier
Bancorp,
Inc.
2,702
110
Gladstone
Commercial
Corp.(ö)
3,200
68
Goosehead
Insurance,
Inc.
Class
A
5,013
240
Great
Southern
Bancorp,
Inc.
500
30
Great
Western
Bancorp,
Inc.
8,848
316
Green
Dot
Corp.
Class
A(Æ)
11,079
542
Greenhill
&
Co.,
Inc.(Ñ)
6,128
83
Guaranty
Bancshares,
Inc.(Û)
500
16
Hallmark
Financial
Services,
Inc.(Æ)
31,944
455
Hancock
Holding
Co.
2,823
113
Hanmi
Financial
Corp.
2,900
65
Hanover
Insurance
Group,
Inc.
(The)
1,228
158
HarborOne
Bancorp,
Inc.(Æ)(Ð)
600
11
Health
Insurance
Innovations,
Inc.
Class
A(Æ)(Ñ)
8,236
213
Healthcare
Realty
Trust,
Inc.
2,551
80
Healthcare
Trust
of
America,
Inc.
Class
A(ö)
5,600
154
Heartland
Financial
USA,
Inc.
3,380
151
Heritage
Insurance
Holdings,
Inc.
400
6
Home
Bancorp,
Inc.(Û)
300
12
Home
BancShares
,
Inc.
55,223
1,064
HomeStreet
,
Inc.(Æ)
32,234
955
HomeTrust
Bancshares,
Inc.(Û)
800
20
Horace
Mann
Educators
Corp.
2,295
92
Houlihan
Lokey
,
Inc.
Class
A
2,079
93
Iberiabank
Corp.
1,855
141
Independence
Realty
Trust,
Inc.(ö)
40,091
464
Independent
Bank
Corp.(Û)
46,154
1,005
Independent
Bank
Group,
Inc.
1,824
100
Industrial
Logistics
Properties
Trust
11,175
233
Innovative
Industrial
Properties,
Inc.(Ñ)
1,418
175
Interactive
Brokers
Group,
Inc.
Class
A
700
38
International
Bancshares
Corp.
1,070
40
Investors
Bancorp,
Inc.
7,605
85
Investors
Real
Estate
Trust
9,556
561
JER
Investment
Trust,
Inc.(Æ)(Š)
1,771
—
Jernigan
Capital,
Inc.(ö)
5,162
106
Kearny
Financial
Corp.
95,988
1,275
Kemper
Corp.
7,196
621
Kennedy-Wilson
Holdings,
Inc.
38,399
790
Ladder
Capital
Corp.
Class
A(ö)
9,783
162
Ladenburg
Thalmann
Financial
Services,
Inc.(Û)
6,300
22
Lakeland
Financial
Corp.
10,676
500
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
24
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Lamar
Media
Corp.
Class
A(Ð)(ö)
1,800
145
Lazard,
Ltd.
Class
A(Ð)
900
31
Legacy
Housing
Corp.(Æ)
26,703
332
LegacyTexas
Financial
Group,
Inc.(Æ)
966
39
LendingClub
Corp.(Æ)
27,400
90
LendingTree,
Inc.(Æ)(Ñ)
1,313
551
Liberty
Property
Trust(Û)
7,900
395
Life
Storage,
Inc.(Æ)(ö)
1,000
95
Live
Oak
Bancshares,
Inc.
6,153
106
LPL
Financial
Holdings,
Inc.
1,701
138
LTC
Properties,
Inc.(Ð)
1,500
68
Luther
Burbank
Corp.
1,100
12
Marcus
&
Millichap,
Inc.(Æ)
6,009
185
Medical
Properties
Trust,
Inc.
18,957
331
Mercantile
Bank
Corp.
900
29
Meridian
Bancorp,
Inc.
1,400
25
Meta
Financial
Group,
Inc.
3,499
98
Metropolitan
Bank
Holding
Corp.(Æ)(Ð)
200
9
MGIC
Investment
Corp.(Æ)
42,844
563
MidWestOne
Financial
Group,
Inc.
700
20
Moelis
&
Co.
Class
A
3,349
117
Morningstar,
Inc.
5,003
724
National
Bank
Holdings
Corp.
Class
A
21,125
767
National
General
Holdings
Corp.
9,100
209
National
Western
Life
Group,
Inc.
Class
A
375
96
NBT
Bancorp,
Inc.
2,770
104
NexPoint
Residential
Trust,
Inc.
13,272
549
Nicolet
Bankshares
,
Inc.(Æ)
800
50
NMI
Holdings,
Inc.
Class
A(Æ)
8,688
247
Northeast
Bank
11,951
330
Northwest
Bancshares,
Inc.
7,167
126
Office
Properties
Income
Trust
1,860
49
OFG
Bancorp(Ð)
2,300
55
Old
Second
Bancorp,
Inc.
36,467
466
OneMain
Holdings,
Inc.(Æ)
3,300
112
Opus
Bank(Ð)
4,900
103
Origin
Bancorp,
Inc.
10,902
359
Outfront
Media,
Inc.(ö)
4,900
126
Pacific
Premier
Bancorp,
Inc.
5,539
171
Paysign
,
Inc.(Æ)(Ñ)
11,934
160
PCSB
Financial
Corp.
46,024
932
Peapack
Gladstone
Financial
Corp.
22,226
625
Pebblebrook
Hotel
Trust
4,819
136
Peoples
Bancorp,
Inc.
1,300
42
People's
United
Financial,
Inc.
7,316
123
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
People's
Utah
Bancorp
1,250
37
Physicians
Realty
Trust(ö)
8,448
147
Piedmont
Office
Realty
Trust,
Inc.
Class
A
21,017
419
Piper
Jaffray
Cos.
2,200
163
Popular,
Inc.
15,432
837
Potlatch
Corp.
29,624
1,155
Primerica,
Inc.
2,264
272
Prosperity
Bancshares,
Inc.(Ð)
2,000
132
Protective
Insurance
Corp.
Class
B
400
7
PS
Business
Parks,
Inc.(ö)
2,196
371
Pzena
Investment
Management,
Inc.
Class
A
22,574
194
QCR
Holdings,
Inc.
1,100
38
QTS
Realty
Trust,
Inc.
Class
A(ö)
14,960
691
Radian
Group,
Inc.
7,276
166
Rayonier,
Inc.(ö)
6,200
188
Redfin
Corp.(Æ)
8,542
154
Regency
Centers
Corp.(ö)
2,900
194
Reinsurance
Group
of
America,
Inc.
Class
A(Û)
3,200
499
RenaissanceRe
Holdings,
Ltd.
2,100
374
Renasant
Corp.
2,342
84
Retail
Properties
of
America,
Inc.
Class
A(Û)
18,800
221
Retail
Value,
Inc.
1,100
38
Rexford
Industrial
Realty,
Inc.(ö)
4,133
167
Riverview
Bancorp,
Inc.
300
3
RLJ
Lodging
Trust
10,737
190
RMR
Group,
Inc.
(The)
Class
A
1,162
55
Ryman
Hospitality
Properties,
Inc.(ö)
8,154
661
Sabra
Health
Care
REIT,
Inc.(ö)
6,754
133
Selective
Insurance
Group,
Inc.
1,567
117
ServisFirst
Bancshares,
Inc.
2,017
69
Signature
Bank
1,000
121
Silvercrest
Asset
Management
Group,
Inc.
Class
A
18,076
254
Simmons
First
National
Corp.
Class
A
2,928
68
SITE
Centers
Corp.(ö)
35,257
467
SL
Green
Realty
Corp.(ö)
700
56
South
State
Corp.
4,127
304
Southern
First
Bancshares,
Inc.(Æ)
300
12
SP
Plus
Corp.(Æ)
1,400
45
Spirit
Realty
Capital,
Inc.(ö)
2,500
107
STAG
Industrial,
Inc.(ö)
3,648
110
Stifel
Financial
Corp.
8,510
503
Summit
Financial
Group,
Inc.
630
17
Sunstone
Hotel
Investors,
Inc.
11,743
161
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
25
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Synovus
Financial
Corp.
4,200
147
TCF
Financial
Corp.
7,900
164
Terreno
Realty
Corp.(ö)
3,173
156
Third
Point
Reinsurance,
Ltd.(Æ)(Ð)
12,700
131
TriCo
Bancshares
1,000
38
Triumph
Bancorp,
Inc.(Æ)
1,244
36
Trustmark
Corp.
2,676
89
UMB
Financial
Corp.
1,389
91
UMH
Properties,
Inc.
20,818
258
Umpqua
Holdings
Corp.(Ð)
2,900
48
United
Bankshares
,
Inc.
3,296
122
United
Community
Banks,
Inc.
14,193
405
United
Community
Financial
Corp.
3,800
36
United
Financial
Bancorp,
Inc.
1,100
16
Universal
Insurance
Holdings,
Inc.
5,483
153
Unum
Group
700
23
Valley
National
Bancorp
9,512
103
Veritex
Holdings,
Inc.
5,991
155
VICI
Properties,
Inc.
8,800
194
Voya
Financial,
Inc.
4,300
238
Waddell
&
Reed
Financial,
Inc.
Class
A
10,659
177
Washington
Federal,
Inc.
3,963
138
Wintrust
Financial
Corp.
5,255
384
WR
Berkley
Corp.
(Û)
7,670
506
WSFS
Financial
Corp.
2,985
123
Xenia
Hotels
&
Resorts,
Inc.
14,780
308
58,713
Health
Care
-
13.0%
Acadia
Pharmaceuticals,
Inc.(Æ)
6,671
178
Acceleron
Pharma,
Inc.(Æ)
1,874
77
Accuray
,
Inc.(Æ)
80,158
310
Acorda
Therapeutics,
Inc.(Æ)
10,900
84
Addus
HomeCare
Corp.(Æ)
3,676
276
Akorn
,
Inc.(Æ)(Ð)
8,300
43
Aldeyra
Therapeutics,
Inc.(Æ)
8,368
50
Alkermes
PLC(Æ)(Ð)
6,700
151
Allscripts
Healthcare
Solutions,
Inc.(Æ)
53,635
624
AMAG
Pharmaceuticals,
Inc.(Æ)
6,500
65
Amedisys
,
Inc.(Æ)
3,536
429
AMN
Healthcare
Services,
Inc.(Æ)
1,937
105
Amphastar
Pharmaceuticals,
Inc.(Æ)(Ð)
1,300
27
AnaptysBio
,
Inc.(Æ)
1,026
58
Anika
Therapeutics,
Inc.(Æ)
1,517
62
Apollo
Endosurgery
,
Inc.(Æ)
26,073
85
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Applied
Genetic
Technologies
Corp.(Æ)(Ð)
1,300
5
Arcus
Biosciences,
Inc.(Æ)
1,600
13
Arena
Pharmaceuticals,
Inc.(Æ)
2,838
166
Array
BioPharma
,
Inc.(Æ)
17,002
788
Arrowhead
Pharmaceuticals,
Inc.(Æ)
6,337
168
Assertio
Therapeutics,
Inc.(Æ)(Ð)
9,500
33
Avedro
,
Inc.(Æ)
8,189
161
BioLife
Solutions,
Inc.(Æ)
24,614
417
BioTelemetry
,
Inc.(Æ)
8,312
400
Blueprint
Medicines
Corp.(Æ)
1,835
173
Cantel
Medical
Corp.
7,978
643
Cardiovascular
Systems,
Inc.(Æ)
24,522
1,054
CareDx
,
Inc.(Æ)
10,475
377
Castlight
Health,
Inc.
Class
B(Æ)
27,930
90
Chemed
Corp.
3,467
1,252
Chimerix
,
Inc.(Æ)
8,600
37
Computer
Programs
&
Systems,
Inc.
2,700
75
Corcept
Therapeutics,
Inc.(Æ)
7,759
87
CorVel
Corp.(Æ)
8,704
757
Cross
Country
Healthcare,
Inc.(Æ)
13,114
123
Cutera
,
Inc.(Æ)(Ð)
900
19
Denali
Therapeutics,
Inc.(Æ)
2,561
53
Eagle
Pharmaceuticals,
Inc.(Æ)
2,079
116
Emergent
BioSolutions
,
Inc.(Æ)
2,575
124
Enanta
Pharmaceuticals,
Inc.(Æ)
1,601
135
Encompass
Health
Corp.(Æ)
13,236
839
Endo
International
PLC(Æ)
12,000
49
Ensign
Group,
Inc.
(The)
24,676
1,405
Evofem
Biosciences,
Inc.(Æ)
400
3
FibroGen
,
Inc.(Æ)
3,152
142
Genomic
Health,
Inc.(Æ)
2,046
119
Global
Blood
Therapeutics,
Inc.(Æ)
2,306
121
Globus
Medical,
Inc.
Class
A(Æ)
3,625
153
Haemonetics
Corp.(Æ)
1,205
145
Halozyme
Therapeutics,
Inc.(Æ)(Û)
3,596
62
Hanger,
Inc.(Æ)
29,692
569
Harvard
Bioscience,
Inc.(Æ)
40,969
82
HealthEquity
,
Inc.(Æ)
3,559
233
Healthways
,
Inc.(Æ)
6,242
103
Heron
Therapeutics,
Inc.(Æ)
1,751
33
Infinity
Pharmaceuticals,
Inc.(Æ)
1,400
3
Inogen
,
Inc.(Æ)
2,128
142
Inspire
Medical
Systems,
Inc.(Æ)
2,749
167
Insulet
Corp.(Æ)
1,182
141
Integra
LifeSciences
Holdings
Corp.(Æ)
2,459
137
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
26
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Intra-Cellular
Therapies,
Inc.
Class
A(Æ)(Ð)
1,400
18
Invitae
Corp.(Æ)
6,021
141
Ironwood
Pharmaceuticals,
Inc.
Class
A(Æ)
(Ð)
700
8
IVERIC
bio,
Inc.(Æ)
3,400
4
Jazz
Pharmaceuticals
PLC(Æ)
1,160
165
Lannett
Co.,
Inc.(Æ)
3,800
23
LeMaitre
Vascular,
Inc.
12,284
344
LHC
Group,
Inc.(Æ)
4,611
551
Ligand
Pharmaceuticals,
Inc.
Class
B(Æ)(Ñ)
4,538
518
LivaNova
PLC(Æ)
2,107
152
Luminex
Corp.(Ð)
4,100
85
MacroGenics
,
Inc.(Æ)
4,031
68
Madrigal
Pharmaceuticals,
Inc.(Æ)
1,206
126
Magellan
Health,
Inc.(Æ)
2,420
180
Mallinckrodt
PLC(Æ)
8,500
78
Medidata
Solutions,
Inc.(Æ)
1,925
174
Medpace
Holdings,
Inc.(Æ)
1,684
110
MEI
Pharma,
Inc.(Æ)
1,600
4
Menlo
Therapeutics,
Inc.(Æ)
3,200
19
Merit
Medical
Systems,
Inc.(Æ)
12,983
773
Mersana
Therapeutics,
Inc.(Æ)
1,000
4
Minerva
Neurosciences,
Inc.(Æ)
1,600
9
Mirati
Therapeutics,
Inc.(Æ)
1,713
176
Molina
Healthcare,
Inc.(Æ)(Ð)
1,190
170
Myriad
Genetics,
Inc.(Æ)
5,894
164
Neogen
Corp.(Æ)
2,169
135
NeoGenomics
,
Inc.(Æ)
36,367
798
Neon
Therapeutics,
Inc.(Æ)
900
4
NextGen
Healthcare,
Inc.(Æ)
1,400
28
Omnicell
,
Inc.(Æ)
8,997
774
OraSure
Technologies,
Inc.(Æ)
11,592
108
Orthofix
Medical,
Inc.(Æ)
3,660
193
OrthoPediatrics
Corp.(Æ)
3,136
122
Pacira
Pharmaceuticals,
Inc.(Æ)(Ð)
200
9
PDL
BioPharma
,
Inc.(Æ)
36,743
115
Penumbra,
Inc.(Æ)
1,537
246
Pfenex
,
Inc.(Æ)
27,489
185
Prestige
Brands
Holdings,
Inc.(Æ)
12,535
397
Principia
Biopharma,
Inc.(Æ)
700
23
Prothena
Corp.
PLC(Æ)(Ð)
3,900
41
Providence
Service
Corp.
(The)(Æ)
986
57
R1
RCM,
Inc.(Æ)
74,145
933
RadNet
,
Inc.(Æ)
47,446
654
REGENXBIO,
Inc.(Æ)
3,530
181
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Repligen
Corp.(Æ)
5,139
442
Retrophin
,
Inc.(Æ)(Ð)
400
8
Revance
Therapeutics,
Inc.(Æ)(Ð)
2,800
36
Rigel
Pharmaceuticals,
Inc.(Æ)
7,800
20
Sangamo
BioSciences
,
Inc.(Æ)
5,935
64
SeaSpine
Holdings
Corp.(Æ)
62,863
833
Spark
Therapeutics,
Inc.(Æ)
1,663
170
Surmodics
,
Inc.(Æ)(Ð)
600
26
Tactile
Systems
Technology,
Inc.(Æ)
4,769
271
Tandem
Diabetes
Care,
Inc.(Æ)
10,182
657
Teladoc
Health,
Inc.(Æ)(Ñ)
3,585
238
Tenet
Healthcare
Corp.(Æ)(Ð)
300
6
Trinity
Biotech
PLC
-
ADR
18,953
35
Triple-S
Management
Corp.
Class
B(Æ)
1,700
41
Ultragenyx
Pharmaceutical,
Inc.(Æ)
2,464
156
Unum
Therapeutics,
Inc.(Æ)(Û)
1,600
4
US
Physical
Therapy,
Inc.
6,588
807
Utah
Medical
Products,
Inc.
6,102
584
Vanda
Pharmaceuticals,
Inc.(Æ)
7,734
109
Varex
Imaging
Corp.(Æ)
16,170
496
Veracyte
,
Inc.(Æ)
14,198
405
Vericel
Corp.(Æ)
24,079
455
ViewRay
,
Inc.(Æ)
12,475
110
Wright
Medical
Group
NV(Æ)
7,580
226
Xenon
Pharmaceuticals,
Inc.(Æ)
8,221
81
29,885
Materials
and
Processing
-
5.8%
AdvanSix
,
Inc.(Æ)
1,700
42
Allegheny
Technologies,
Inc.(Æ)
9,996
252
Apogee
Enterprises,
Inc.
7,258
315
Armstrong
Flooring,
Inc.(Æ)
19,265
190
Armstrong
World
Industries,
Inc.(Û)
4,153
403
Ashland
Global
Holdings,
Inc.(Ð)
3,100
248
Aspen
Aerogels,
Inc.(Æ)
6,455
46
Axalta
Coating
Systems,
Ltd.(Æ)(Ð)
4,600
137
Boise
Cascade
Co.(Ð)
3,000
84
BrightView
Holdings,
Inc.(Æ)
15,005
281
Cabot
Corp.(Ð)
700
33
Cabot
Microelectronics
Corp.
7,076
778
Carpenter
Technology
Corp.
2,838
136
Comfort
Systems
USA,
Inc.
17,322
884
Culp,
Inc.
1,100
21
Element
Solutions,
Inc.(Æ)
78,936
815
Haynes
International,
Inc.
10,015
319
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
27
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Huntsman
Corp.(Û)
8,700
178
Ingevity
Corp.(Æ)
5,997
631
Innospec
,
Inc.
1,100
100
Koppers
Holdings,
Inc.(Æ)
600
18
Kraton
Corp.(Æ)
500
16
Landec
Corp.(Æ)
48,108
451
LB
Foster
Co.
Class
A(Æ)
400
11
Lennox
International,
Inc.(Ð)
860
237
LiqTech
International,
Inc.(Æ)
5,260
52
Masonite
International
Corp.(Æ)
3,200
169
MRC
Global,
Inc.(Æ)(Ð)
1,500
26
Neenah
Paper,
Inc.
7,318
494
NewMarket
Corp.(Ð)
370
148
Olin
Corp.(Ð)
6,100
134
Olympic
Steel,
Inc.
200
3
Orion
Engineered
Carbons
SA
26,703
572
PGT
Innovations,
Inc.(Æ)
15,008
251
PH
Glatfelter
Co.
13,184
222
PolyOne
Corp.(Ð)
5,500
173
Quaker
Chemical
Corp.
4,081
827
RBC
Bearings,
Inc.(Æ)
856
143
Schnitzer
Steel
Industries,
Inc.
Class
A
1,600
42
Schweitzer-Mauduit
International,
Inc.
20,680
686
Silgan
Holdings,
Inc.(Ð)
7,980
244
Simpson
Manufacturing
Co.,
Inc.
2,204
146
Stepan
Co.
2,500
230
Trex
Co.,
Inc.(Æ)
4,433
318
Trinseo
SA
3,800
161
Universal
Stainless
&
Alloy
Products,
Inc.(Æ)
21,812
349
US
Concrete,
Inc.(Æ)(Ñ)
12,270
610
Valmont
Industries,
Inc.
2,060
261
Valvoline,
Inc.(Ð)
12,900
252
Veritiv
Corp.(Æ)
900
17
Westlake
Chemical
Corp.
300
21
WR
Grace
&
Co.(Ð)
2,400
183
13,360
Producer
Durables
-
16.8%
AAR
Corp.
3,144
116
ACCO
Brands
Corp.
29,642
234
Adient
PLC(Ð)
1,700
41
AECOM(Æ)
5,800
220
Aerojet
Rocketdyne
Holdings,
Inc.(Æ)
1,714
77
Aerovironment
,
Inc.(Æ)
1,324
75
AGCO
Corp.
4,000
310
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Air
Transport
Services
Group,
Inc.(Æ)
3,935
96
Alamo
Group,
Inc.
900
90
Albany
International
Corp.
Class
A
1,438
119
Allied
Motion
Technologies,
Inc.
7,137
270
Allison
Transmission
Holdings,
Inc.
Class
A
700
32
Apergy
Corp.(Æ)
1,700
57
ArcBest
Corp.
1,200
34
Arcosa
,
Inc.
32,931
1,238
Ardmore
Shipping
Corp.(Æ)
69,969
570
Argan
,
Inc.
7,018
285
ASGN,
Inc.(Æ)
4,462
270
Astec
Industries,
Inc.
7,737
252
Astronics
Corp.(Æ)
800
32
AstroNova
,
Inc.
4,574
118
Axon
Enterprise,
Inc.(Æ)
2,368
152
Babcock
&
Wilcox
Co.
(The)
Class
W(Æ)
20,189
1,051
Badger
Meter,
Inc.
12,576
751
Barnes
Group,
Inc.
900
51
Barrett
Business
Services,
Inc.
900
74
Brady
Corp.
Class
A
863
43
Brink's
Co.
(The)
12,281
997
Cactus,
Inc.
Class
A(Æ)
2,618
87
Carlisle
Cos.,
Inc.
1,310
184
Columbus
McKinnon
Corp.
2,881
121
Control4
Corp.(Æ)
1,980
47
Covanta
Holding
Corp.
54,435
975
Covenant
Transportation
Group,
Inc.
Class
A(Æ)
1,100
16
CPI
Aerostructures
,
Inc.(Æ)
25,759
217
CRA
International,
Inc.
8,887
341
Crane
Co.
2,000
167
Daseke
,
Inc.(Æ)
16,376
59
Dycom
Industries,
Inc.(Æ)
9,047
533
Echo
Global
Logistics,
Inc.(Æ)
1,900
40
Electronics
For
Imaging,
Inc.(Æ)
1,538
57
EMCOR
Group,
Inc.
5,393
475
Encore
Wire
Corp.(Û)
3,831
224
EnPro
Industries,
Inc.
860
55
Exponent,
Inc.
11,066
648
Fluent,
Inc.(Æ)
10,483
56
Fluor
Corp.
5,900
199
Forward
Air
Corp.
888
53
FreightCar
America,
Inc.(Æ)
45,439
267
frontdoor
,
Inc.(Æ)
23,884
1,040
FTI
Consulting,
Inc.(Æ)
1,377
115
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
28
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Generac
Holdings,
Inc.(Æ)
6,840
475
GP
Strategies
Corp.(Æ)
7,872
119
Granite
Construction,
Inc.
5,520
266
Great
Lakes
Dredge
&
Dock
Corp.(Æ)
80,266
886
Greenbrier
Cos.,
Inc.
2,767
84
Hackett
Group,
Inc.
(The)
34,984
587
Hawaiian
Holdings,
Inc.
3,014
83
HD
Supply
Holdings,
Inc.(Æ)
4,010
162
Healthcare
Services
Group,
Inc.(Ñ)
19,811
601
HEICO
Corp.
2,783
372
Hub
Group,
Inc.
Class
A(Æ)
3,000
126
Huntington
Ingalls
Industries,
Inc.(Ð)
(Û)
810
182
Hyster
-Yale
Materials
Handling,
Inc.
2,200
122
ICF
International,
Inc.
22,009
1,601
Insperity
,
Inc.(Û)
2,821
345
Kadant
,
Inc.
400
36
KBR,
Inc.
39,407
983
Kforce
,
Inc.
1,560
55
Kimball
International,
Inc.
Class
B
28,315
494
Knoll,
Inc.
700
16
Korn/Ferry
International(Û)
5,733
230
Kornit
Digital,
Ltd.(Æ)(Ñ)
8,119
257
Kratos
Defense
&
Security
Solutions,
Inc.(Æ)
2,262
52
Landstar
System,
Inc.
2,100
227
Lincoln
Electric
Holdings,
Inc.(Ð)
1,600
132
Liquidity
Services,
Inc.(Æ)
31,542
192
Littelfuse
,
Inc.
3,960
701
Manitowoc
Co.,
Inc.
(The)(Æ)
3,100
55
ManpowerGroup
,
Inc.(Û)
3,600
348
MasTec
,
Inc.(Æ)
15,757
812
MAXIMUS,
Inc.
8,297
602
Methode
Electronics,
Inc.
5,984
171
Modine
Manufacturing
Co.(Æ)
1,700
24
MYR
Group,
Inc.(Æ)
800
30
Navigant
Consulting,
Inc.
1,700
39
Navistar
International
Corp.(Æ)(Ð)
2,900
100
NV5
Global,
Inc.(Æ)
1,989
162
Orion
Group
Holdings,
Inc.(Æ)
78,453
210
Park-Ohio
Holdings
Corp.
800
26
Paylocity
Holding
Corp.(Æ)
1,058
99
Pentair
PLC
3,760
140
Primoris
Services
Corp.
500
10
Proto
Labs,
Inc.(Æ)
1,359
158
Radiant
Logistics,
Inc.
24,842
153
Rollins,
Inc.(Ð)
700
25
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Ryder
System,
Inc.
17,031
993
Saia,
Inc.(Æ)(Û)
6,209
401
Schneider
National,
Inc.
Class
B
3,600
66
Scorpio
Tankers,
Inc.
17,289
510
SkyWest,
Inc.
7,553
458
Spartan
Motors,
Inc.
1,500
16
Spirit
AeroSystems
Holdings,
Inc.
Class
A
1,600
130
Spirit
Airlines,
Inc.(Æ)
5,165
247
SPX
Corp.(Æ)
1,000
33
SPX
FLOW,
Inc.(Æ)
2,700
113
Standex
International
Corp.
8,194
600
StealthGas
,
Inc.(Æ)
115,842
398
Steelcase,
Inc.
Class
A
25,017
427
Sterling
Construction
Co.,
Inc.(Æ)
4,400
59
Sykes
Enterprises,
Inc.(Æ)
6,386
175
Tennant
Co.
1,160
71
Terex
Corp.(Ð)
4,400
138
Tetra
Tech,
Inc.
13,829
1,086
Titan
International,
Inc.(Ð)
3,800
19
Titan
Machinery,
Inc.(Æ)
2,965
61
TopBuild
Corp.(Æ)
4,674
387
TreeHouse
Foods,
Inc.(Æ)
6,199
335
TriNet
Group,
Inc.(Æ)
1,234
84
TrueBlue
,
Inc.(Æ)(Û)
5,400
119
Tutor
Perini
Corp.(Æ)
43,261
600
Ultralife
Corp.(Æ)
35,667
284
UniFirst
Corp.
1,038
196
Universal
Truckload
Services,
Inc.
500
11
US
Xpress
Enterprises,
Inc.
Class
A(Æ)(Ð)
4,000
21
USA
Truck,
Inc.(Æ)
18,550
188
Vectrus
,
Inc.(Æ)
9,495
385
Vishay
Precision
Group,
Inc.(Æ)
5,541
225
Wabash
National
Corp.(Ð)
2,400
39
WageWorks
,
Inc.(Æ)
21,044
1,068
Watts
Water
Technologies,
Inc.
Class
A
2,475
231
Welbilt
,
Inc.(Æ)
35,165
587
Werner
Enterprises,
Inc.
3,232
100
WESCO
International,
Inc.(Æ)
3,000
152
Willdan
Group,
Inc.(Æ)
5,969
222
WillScot
Corp.(Æ)
25,449
383
WNS
Holdings,
Ltd.
-
ADR
5,956
353
Woodward,
Inc.
1,191
135
YRC
Worldwide,
Inc.(Æ)
76,442
308
38,595
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
29
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Technology
-
13.6%
A10
Networks,
Inc.(Æ)(Û)
6,000
41
Acacia
Communications,
Inc.(Æ)
300
14
Adesto
Technologies
Corp.(Æ)
21,561
176
ADTRAN,
Inc.
6,700
102
Aerohive
Networks,
Inc.(Æ)
29,176
129
Agilysys
,
Inc.(Æ)
500
11
Allot
Communications,
Ltd.(Æ)
28,425
205
Ambarella
,
Inc.(Æ)
2,419
107
Amkor
Technology,
Inc.(Æ)
8,400
63
Appfolio
,
Inc.
Class
A(Æ)
2,616
268
Applied
Optoelectronics,
Inc.(Æ)(Ñ)
2,626
27
Arlo
Technologies,
Inc.(Æ)(Ð)
21,500
86
Arrow
Electronics,
Inc.(Æ)(Ð)
4,700
335
Aspen
Technology,
Inc.(Æ)
1,380
172
Avaya
Holdings
Corp.(Æ)
18,890
225
Avid
Technology,
Inc.(Æ)(Ð)
1,700
16
Avnet,
Inc.
5,400
244
Axcelis
Technologies,
Inc.(Æ)
7,490
113
AXT,
Inc.(Æ)
10,847
43
Benchmark
Electronics,
Inc.
15,530
390
Blackline,
Inc.(Æ)
2,124
114
Bottomline
Technologies,
Inc.(Æ)(Û)
1,940
86
Box,
Inc.
Class
A(Æ)
19,554
345
CACI
International,
Inc.
Class
A(Æ)
852
174
CalAmp
Corp.(Æ)
27,929
326
Calix,
Inc.(Æ)(Û)
7,000
46
Carbonite,
Inc.(Æ)
400
10
Cars.com,
Inc.(Æ)
13,762
315
Casa
Systems,
Inc.(Æ)(Ð)
800
5
ChannelAdvisor
Corp.(Æ)
1,600
14
Ciena
Corp.(Æ)
3,913
161
Cirrus
Logic,
Inc.(Æ)
13,073
572
Cloudera,
Inc.(Æ)
13,273
70
CommScope
Holding
Co.,
Inc.(Æ)(Û)
8,600
135
CommVault
Systems,
Inc.(Æ)
8,485
421
comScore,
Inc.(Æ)(Ð)
5,400
28
Comtech
Telecommunications
Corp.
1,200
34
Conduent
,
Inc.(Æ)(Ð)
8,800
84
Cornerstone
OnDemand
,
Inc.(Æ)
5,883
341
Coupa
Software,
Inc.(Æ)
1,402
178
Cree,
Inc.(Æ)
1,324
74
Diebold
Nixdorf,
Inc.(Æ)(Ð)
3,500
32
Digi
International,
Inc.(Æ)
1,300
16
Digital
Turbine,
Inc.(Æ)
26,732
134
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Donnelley
Financial
Solutions,
Inc.(Æ)
1,100
15
DSP
Group,
Inc.(Æ)(Û)
10,293
148
EMCORE
Corp.(Æ)(Û)
3,900
13
Endurance
International
Group
Holdings,
Inc.(Æ)
3,400
16
Entegris
,
Inc.
3,156
118
ePlus
,
Inc.(Æ)(Û)
2,441
168
Etsy,
Inc.(Æ)
1,901
117
Everbridge
,
Inc.(Æ)
7,279
651
Evolent
Health,
Inc.
Class
A(Æ)
4,600
37
Fabrinet
(Æ)
1,449
72
FireEye,
Inc.(Æ)
55,056
815
Five9,
Inc.(Æ)
22,379
1,147
GDS
Holdings,
Ltd.
-
ADR(Æ)(Ñ)
6,775
255
Glu
Mobile,
Inc.(Æ)
19,056
137
Harmonic,
Inc.(Æ)
7,800
43
HC2
Holdings,
Inc.(Æ)
27,579
65
HubSpot
,
Inc.(Æ)
723
124
II-VI,
Inc.(Æ)
7,159
262
Immersion
Corp.(Æ)
11,155
85
Infinera
Corp.(Æ)(Ð)
26,800
78
Inovalon
Holdings,
Inc.
Class
A(Æ)
3,400
49
Insight
Enterprises,
Inc.(Æ)
4,046
235
InterDigital
,
Inc.
1,481
95
Intevac,
Inc.(Æ)
300
1
iRobot
Corp.(Æ)(Ñ)
1,370
126
Jabil
Circuit,
Inc.
7,400
234
Juniper
Networks,
Inc.(Û)
2,900
77
Kemet
Corp.
4,741
89
Kimball
Electronics,
Inc.(Æ)
53,548
870
Knowles
Corp.(Æ)
3,189
58
Leaf
Group,
Ltd.(Æ)
31,542
234
Liberty
Latin
America,
Ltd.
Class
C(Æ)
8,000
138
Limelight
Networks,
Inc.(Æ)
98,635
266
LiveRamp
Holdings,
Inc.(Æ)
2,512
122
LogMeIn,
Inc.
8,946
659
Lumentum
Holdings,
Inc.
Class
E(Æ)
3,512
188
ManTech
International
Corp.
Class
A
2,329
153
Meet
Group,
Inc.(Æ)(Ð)
7,400
26
Mercury
Systems,
Inc.(Æ)
6,051
426
MicroStrategy
,
Inc.
Class
A(Æ)
3,609
518
Mimecast,
Ltd.(Æ)
2,043
95
MiX
Telematics,
Ltd.
-
ADR
7,439
112
MobileIron
,
Inc.(Æ)
14,600
91
Model
N,
Inc.(Æ)(Ð)
2,400
47
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
30
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
NeoPhotonics
Corp.(Æ)
51,724
216
NETGEAR,
Inc.(Æ)
2,157
55
NetScout
Systems,
Inc.(Æ)
20,726
526
NIC,
Inc.
5,476
88
Nice,
Ltd.
-
ADR(Æ)
1,454
199
nLight
,
Inc.(Æ)
3,695
71
Nuance
Communications,
Inc.(Æ)
7,900
126
Ooma
,
Inc.(Æ)
28,794
302
Parsons
Corp.(Æ)
2,496
92
PC
Connection,
Inc.
5,848
204
PC-Telephone,
Inc.(Æ)
11,525
51
Perficient
,
Inc.(Æ)
19,659
675
Perspecta
,
Inc.
35,818
838
Photronics
,
Inc.(Æ)
7,427
61
Plantronics,
Inc.
2,085
77
PlayAGS
,
Inc.(Æ)
36,455
709
Plexus
Corp.(Æ)
1,080
63
Pluralsight
,
Inc.
Class
A(Æ)
8,349
253
Power
Integrations,
Inc.
11,875
952
Presidio,
Inc.
4,600
63
Progress
Software
Corp.
2,370
103
Proofpoint
,
Inc.(Æ)
4,551
547
QAD,
Inc.
Class
A
300
12
Qualys
,
Inc.(Æ)
1,422
124
Rambus,
Inc.(Æ)
6,300
76
RealPage
,
Inc.(Æ)
4,500
265
Resideo
Technologies,
Inc.(Æ)
21,065
462
Ribbon
Communications,
Inc.(Æ)
5,000
24
Rogers
Corp.(Æ)
505
87
Roku,
Inc.(Æ)
3,200
290
Rubicon
Project,
Inc.
(The)(Æ)
40,609
258
Rudolph
Technologies,
Inc.(Æ)
3,482
96
SailPoint
Technologies
Holding,
Inc.(Æ)
4,083
82
Sanmina
Corp.(Æ)
3,054
92
ScanSource
,
Inc.(Æ)
5,214
170
Semtech
Corp.(Æ)
2,586
124
ShotSpotter,
Inc.(Æ)(Ñ)
11,042
488
Silicon
Laboratories,
Inc.(Æ)
1,140
118
SMART
Global
Holdings,
Inc.(Æ)
19,243
442
Smartsheet
,
Inc.
Class
A(Æ)
3,075
149
Sonim
Technologies,
Inc.(Æ)
6,487
83
Sonos
,
Inc.(Æ)(Ð)
2,400
27
Stratasys
,
Ltd.(Æ)
2,700
79
Switch,
Inc.
Class
A
32,574
426
Synaptics
,
Inc.(Æ)(Ð)
5,200
152
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Synchronoss
Technologies,
Inc.(Æ)
4,600
36
SYNNEX
Corp.
9,289
914
Tech
Data
Corp.(Æ)
3,638
380
TeleNav
,
Inc.(Æ)
4,600
37
Tenable
Holdings,
Inc.(Æ)
1,100
31
Trade
Desk,
Inc.
(The)
Class
A(Æ)
2,274
518
TrueCar
,
Inc.(Æ)(Ð)
5,300
29
Twilio
,
Inc.
Class
A(Æ)
1,692
231
Ultra
Clean
Holdings(Æ)
8,740
122
Unisys
Corp.(Æ)(Ñ)
46,708
454
Universal
Display
Corp.(Ñ)
3,234
608
Upland
Software,
Inc.(Æ)
8,229
375
Varonis
Systems,
Inc.(Æ)
600
37
Veeco
Instruments,
Inc.(Æ)(Ð)
8,000
98
Vishay
Intertechnology
,
Inc.
5,185
86
Workiva
,
Inc.
Class
3(Æ)
8,145
473
Yelp,
Inc.
Class
A(Æ)
4,585
156
Zscaler
,
Inc.(Æ)(Ñ)
4,306
330
Zynga,
Inc.
Class
A(Æ)
26,300
161
31,230
Utilities
-
5.6%
Allete
,
Inc.
3,649
304
American
States
Water
Co.
10,770
811
Antero
Midstream
Corp.(Ñ)
53,257
610
ATN
International,
Inc.(Æ)
1,300
75
Avista
Corp.
12,478
557
Black
Hills
Corp.
2,301
180
Boingo
Wireless,
Inc.(Æ)
27,287
490
California
Water
Service
Group
6,618
335
Chesapeake
Utilities
Corp.
900
86
Cogent
Communications
Holdings,
Inc.
13,043
774
El
Paso
Electric
Co.
2,684
176
GCI
Liberty,
Inc.
Class
A(Æ)
12,483
767
Gogo
,
Inc.(Æ)(Ð)
2,000
8
HighPoint
Resources
Corp.(Æ)
228,427
416
Idacorp
,
Inc.
2,252
226
Mammoth
Energy
Services,
Inc.
41,350
284
MDU
Resources
Group,
Inc.
23,965
618
MGE
Energy,
Inc.
603
44
Midstates
Petroleum
Co.,
Inc.(Æ)
24,552
144
Montage
Resources
Corp.(Æ)
8,272
50
New
Jersey
Resources
Corp.
2,749
137
Northwest
Natural
Holding
Co.
2,729
190
NorthWestern
Corp.
3,951
285
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
31
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
NRG
Energy,
Inc.
6,000
211
ONE
Gas,
Inc.
6,272
566
Pinnacle
West
Capital
Corp.(Ð)(Û)
3,300
310
Plains
GP
Holdings,
LP
Class
A(Æ)(Ð)
1,100
27
PNM
Resources,
Inc.
2,265
115
Portland
General
Electric
Co.
7,758
420
RingCentral,
Inc.
Class
A(Æ)
3,388
389
Rosehill
Resources,
Inc.
Class
A(Æ)
22,146
82
SandRidge
Energy,
Inc.(Æ)
9,267
64
SJW
Group
1,606
98
South
Jersey
Industries,
Inc.
31,186
1,057
Southwest
Gas
Holdings,
Inc.
4,981
447
Spire,
Inc.
2,367
199
Spok
Holdings,
Inc.
5,087
77
Talos
Energy,
Inc.(Æ)(Ð)
2,700
65
Unitil
Corp.
2,409
144
Vistra
Energy
Corp.
18,573
420
Vonage
Holdings
Corp.(Æ)
55,315
627
12,885
Total
Common
Stocks
(cost
$208,534)
230,290
Short-Term
Investments
-
4.3%
U.S.
Cash
Management
Fund(@)
9,809,383
(∞)
9,813
Total
Short-Term
Investments
(cost
$9,812)
9,813
Other
Securities
-
4.5%
U.S.
Cash
Collateral
Fund(×)(@)
10,259,646
(∞)
10,260
Total
Other
Securities
(cost
$10,260)
10,260
Total
Investments
108.8%
(identified
cost
$228,606)
250,363
Securities
Sold
Short
-
(4.5)%
Consumer
Discretionary
-
(1.1)%
American
Outdoor
Brands
Corp.(Æ)
(11,300)
(102)
At
Home
Group,
Inc.(Æ)
(10,100)
(67)
Bed
Bath
&
Beyond,
Inc.
(5,800)
(67)
Carvana
Co.(Æ)
(200)
(13)
Castle
Brands,
Inc.(Æ)
(2,000)
(1)
Century
Communities,
Inc.(Æ)
(5,440)
(145)
DISH
Network
Corp.
Class
A(Æ)
(600)
(23)
Dorman
Products,
Inc.(Æ)
(710)
(62)
Entercom
Communications
Corp.
Class
A
(9,900)
(57)
Fox
Factory
Holding
Corp.(Æ)
(1,000)
(83)
Harley-Davidson,
Inc.
(2,070)
(74)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Houghton
Mifflin
Harcourt
Co.(Æ)
(600)
(3)
Leggett
&
Platt,
Inc.
(4,000)
(153)
LGI
Homes,
Inc.(Æ)
(1,180)
(84)
Mattel,
Inc.(Æ)
(6,600)
(74)
Meredith
Corp.
(1,200)
(66)
Michaels
Cos.,
Inc.
(The)(Æ)
(6,000)
(52)
Monro
Muffler
Brake,
Inc.
(910)
(78)
Movado
Group,
Inc.
(3,200)
(86)
New
Home
Co.,
Inc.
(The)(Æ)
(1,100)
(4)
Newell
Rubbermaid,
Inc.
(5,500)
(85)
Office
Depot,
Inc.
(26,900)
(55)
Papa
John's
International,
Inc.
(1,530)
(68)
Party
City
Holdco,
Inc.(Æ)
(8,900)
(65)
Penn
National
Gaming,
Inc.(Æ)
(4,000)
(77)
PetIQ
,
Inc.(Æ)
(2,100)
(69)
Sally
Beauty
Holdings,
Inc.(Æ)
(4,500)
(60)
Sequential
Brands
Group,
Inc.(Æ)
(2,117)
(1)
Shoe
Carnival,
Inc.
(800)
(22)
Sonic
Automotive,
Inc.
Class
A
(400)
(9)
Speedway
Motorsports,
Inc.
(900)
(17)
Strategic
Education,
Inc.(Æ)
(450)
(80)
Superior
Industries
International,
Inc.
(1,399)
(5)
Tenneco,
Inc.
Class
A
(1,200)
(13)
Thor
Industries,
Inc.
(2,500)
(146)
Tile
Shop
Holdings,
Inc.
(5,300)
(21)
Universal
Electronics,
Inc.(Æ)
(2,140)
(88)
Vitamin
Shoppe,
Inc.(Æ)
(1,900)
(7)
William
Lyon
Homes
Class
A(Æ)
(800)
(15)
Williams-Sonoma,
Inc.
(1,680)
(109)
Winnebago
Industries,
Inc.
(3,340)
(129)
YETI
Holdings,
Inc.(Æ)
(500)
(14)
(2,449)
Consumer
Staples
-
(0.2)%
Dean
Foods
Co.
(16,700)
(15)
Energizer
Holdings,
Inc.
(4,020)
(155)
Hain
Celestial
Group,
Inc.
(The)(Æ)
(5,000)
(110)
Limoneira
Co.
(1,100)
(22)
MGP
Ingredients,
Inc.
(1,300)
(86)
PetMed
Express,
Inc.
(2,400)
(38)
Simply
Good
Foods
Co.
(The)(Æ)
(1,300)
(31)
Spectrum
Brands
Holdings,
Inc.
(500)
(27)
Vector
Group,
Ltd.
(1,300)
(13)
(497)
Energy
-
(0.2)%
Abraxas
Petroleum
Corp.(Æ)
(22,100)
(23)
Advanced
Emissions
Solutions,
Inc.
(700)
(9)
Callon
Petroleum
Co.(Æ)
(11,100)
(73)
Chesapeake
Energy
Corp.(Æ)
(5,300)
(10)
Contango
Oil
&
Gas
Co.(Æ)
(700)
(1)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
32
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Denbury
Resources,
Inc.(Æ)
(2,200)
(3)
First
Solar,
Inc.(Æ)
(1,100)
(72)
Flotek
Industries,
Inc.(Æ)
(2,200)
(7)
Hornbeck
Offshore
Services,
Inc.(Æ)
(800)
(1)
Independence
Contract
Drilling,
Inc.(Æ)
(2,600)
(4)
Key
Energy
Services,
Inc.(Æ)
(1,800)
(4)
Matador
Resources
Co.(Æ)
(7,900)
(157)
Nine
Energy
Service,
Inc.(Æ)
(1,400)
(24)
Pacific
Ethanol,
Inc.(Æ)
(4,700)
(4)
Profire
Energy,
Inc.(Æ)
(1,000)
(2)
QEP
Resources,
Inc.(Æ)
(5,300)
(38)
Ring
Energy,
Inc.(Æ)
(17,000)
(55)
Select
Energy
Services,
Inc.
Class
A(Æ)
(4,400)
(51)
(538)
Financial
Services
-
(1.1)%
AGNC
Investment
Corp.(Æ)
(9,900)
(167)
Agree
Realty
Corp.
(1,100)
(70)
Anworth
Mortgage
Asset
Corp.
(6,400)
(24)
Apollo
Commercial
Real
Estate
Finance,
Inc.(ö)
(3,500)
(64)
Arbor
Realty
Trust,
Inc.(ö)
(10,800)
(131)
CBL
&
Associates
Properties,
Inc.(ö)
(30,400)
(32)
Chimera
Investment
Corp.
(8,300)
(157)
Colony
Credit
Real
Estate,
Inc.
(300)
(5)
Dynex
Capital,
Inc.(ö)
(8,000)
(134)
Encore
Capital
Group,
Inc.(Æ)
(2,900)
(98)
First
Financial
Bancorp
(2,500)
(61)
Granite
Point
Mortgage
Trust,
Inc.
(3,400)
(65)
Hannon
Armstrong
Sustainable
Infrastructure
Capital,
Inc.
(2,530)
(71)
Helios
Technologies,
Inc.(Æ)
(810)
(38)
Jernigan
Capital,
Inc.(ö)
(800)
(16)
Ladder
Capital
Corp.
Class
A(ö)
(4,000)
(66)
MBIA,
Inc.(Æ)
(11,300)
(105)
Moelis
&
Co.
Class
A
(900)
(31)
New
Residential
Investment
Corp.(ö)
(10,500)
(162)
Newmark
Group,
Inc.
Class
A
(4,800)
(43)
Office
Properties
Income
Trust
(2,900)
(76)
Pebblebrook
Hotel
Trust
(5,410)
(152)
Pennsylvania
Real
Estate
Investment
Trust(ö)
(12,500)
(81)
Potlatch
Corp.
(2,600)
(101)
PRA
Group,
Inc.(Æ)
(1,200)
(34)
Ready
Capital
Corp.(Æ)
(1,000)
(15)
Realogy
Holdings
Corp.
(10,100)
(73)
Redwood
Trust,
Inc.(ö)
(4,400)
(73)
Tanger
Factory
Outlet
Centers,
Inc.
(1,700)
(28)
Two
Harbors
Investment
Corp.
(5,500)
(70)
Virtu
Financial,
Inc.
Class
A
(4,300)
(94)
Washington
Prime
Group,
Inc.(ö)
(27,200)
(104)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
(2,441)
Health
Care
-
(0.6)%
Abeona
Therapeutics,
Inc.(Æ)
(700)
(3)
Acceleron
Pharma,
Inc.(Æ)
(300)
(12)
Aclaris
Therapeutics,
Inc.(Æ)
(4,951)
(11)
American
Renal
Associates
Holdings,
Inc.
(Æ)
(2,800)
(21)
Antares
Pharma,
Inc.(Æ)
(2,800)
(9)
Arena
Pharmaceuticals,
Inc.(Æ)
(100)
(6)
ArQule
,
Inc.(Æ)
(1,500)
(17)
Athenex
,
Inc.(Æ)
(2,700)
(53)
Bio-Rad
Laboratories,
Inc.
Class
A(Æ)
(301)
(94)
BioScrip
,
Inc.(Æ)
(11,700)
(30)
Cambrex
Corp.(Æ)
(3,000)
(140)
Capital
Senior
Living
Corp.(Æ)
(1,700)
(9)
Cara
Therapeutics,
Inc.(Æ)
(400)
(9)
Celldex
Therapeutics,
Inc.(Æ)
(2,100)
(6)
Corcept
Therapeutics,
Inc.(Æ)
(1,100)
(12)
Dynavax
Technologies
Corp.(Æ)
(1,900)
(8)
Emergent
BioSolutions
,
Inc.(Æ)
(1,720)
(83)
Enzo
Biochem
,
Inc.(Æ)
(1,300)
(4)
Evofem
Biosciences,
Inc.(Æ)
(1,100)
(7)
iRhythm
Technologies,
Inc.(Æ)
(500)
(40)
LHC
Group,
Inc.(Æ)
(740)
(88)
Ligand
Pharmaceuticals,
Inc.
Class
B(Æ)
(1,450)
(166)
MannKind
Corp.(Æ)
(3,500)
(4)
Matinas
BioPharma
Holdings,
Inc.(Æ)
(4,900)
(4)
Medicines
Co.
(The)(Æ)
(700)
(26)
Miragen
Therapeutics,
Inc.(Æ)
(1,000)
(2)
Myriad
Genetics,
Inc.(Æ)
(700)
(19)
NeoGenomics
,
Inc.(Æ)
(1,000)
(22)
OncoCyte
Corp.(Æ)
(1,964)
(5)
OPKO
Health,
Inc.(Æ)
(34,900)
(85)
Prestige
Brands
Holdings,
Inc.(Æ)
(4,000)
(127)
REGENXBIO,
Inc.(Æ)
(100)
(5)
Sangamo
BioSciences
,
Inc.(Æ)
(4,600)
(50)
Sientra
,
Inc.(Æ)
(1,000)
(6)
Syneos
Health,
Inc.
Class
A(Æ)
(1,800)
(92)
Synlogic
,
Inc.(Æ)
(1,300)
(12)
Tabula
Rasa
HealthCare,
Inc.(Æ)
(1,000)
(50)
Teladoc
Health,
Inc.(Æ)
(770)
(51)
Tetraphase
Pharmaceuticals,
Inc.(Æ)
(7,900)
(4)
ViewRay
,
Inc.(Æ)
(700)
(6)
(1,398)
Materials
and
Processing
-
(0.2)%
American
Woodmark
Corp.(Æ)
(600)
(51)
Beacon
Roofing
Supply,
Inc.(Æ)
(1,800)
(66)
Belden,
Inc.
(800)
(48)
Coeur
Mining,
Inc.(Æ)
(3,300)
(14)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
33
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Cornerstone
Building
Brands,
Inc.(Æ)
(800)
(5)
Hecla
Mining
Co.
(41,600)
(75)
Livent
Corp.(Æ)
(4,100)
(28)
NN,
Inc.
(4,100)
(40)
Northwest
Pipe
Co.(Æ)
(300)
(8)
SiteOne
Landscape
Supply,
Inc.(Æ)
(900)
(62)
Universal
Stainless
&
Alloy
Products,
Inc.(Æ)
(1,500)
(24)
(421)
Producer
Durables
-
(0.4)%
Altra
Industrial
Motion
Corp.
(3,200)
(115)
Aqua
Metals,
Inc.(Æ)
(2,200)
(4)
Argan
,
Inc.
(500)
(20)
CPI
Aerostructures
,
Inc.(Æ)
(100)
(1)
Evo
Payments,
Inc.
Class
A(Æ)
(600)
(19)
GATX
Corp.
(850)
(67)
GP
Strategies
Corp.(Æ)
(600)
(9)
Healthcare
Services
Group,
Inc.
(2,840)
(86)
Heidrick
&
Struggles
International,
Inc.
(1,300)
(39)
Iteris
,
Inc.(Æ)
(1,900)
(10)
Knight-Swift
Transportation
Holdings,
Inc.
(Æ)
(3,100)
(102)
LCI
Industries
(900)
(81)
Macquarie
Infrastructure
Corp.
(1,700)
(69)
Quad/Graphics,
Inc.
(4,200)
(33)
RR
Donnelley
&
Sons
Co.
(6,600)
(13)
Snap-on,
Inc.
(930)
(154)
Stericycle,
Inc.(Æ)
(1,850)
(88)
Willdan
Group,
Inc.(Æ)
(900)
(34)
(944)
Technology
-
(0.6)%
Alteryx,
Inc.
Class
A(Æ)
(400)
(44)
AXT,
Inc.(Æ)
(800)
(3)
Brooks
Automation,
Inc.
(900)
(35)
Cars.com,
Inc.(Æ)
(7,900)
(156)
Ciena
Corp.(Æ)
(100)
(4)
Cloudera,
Inc.(Æ)
(1,500)
(8)
Cognex
Corp.
(1,750)
(84)
Cohu
,
Inc.
(2,300)
(35)
Digimarc
Corp.(Æ)
(500)
(22)
Diodes,
Inc.(Æ)
(2,000)
(73)
Ebix
,
Inc.
(2,000)
(100)
Envestnet
,
Inc.(Æ)
(1,210)
(83)
Evolent
Health,
Inc.
Class
A(Æ)
(5,600)
(45)
Inovalon
Holdings,
Inc.
Class
A(Æ)
(400)
(6)
Inspired
Entertainment,
Inc.(Æ)
(200)
(2)
Kopin
Corp.(Æ)
(9,100)
(10)
Match
Group,
Inc.
(600)
(40)
MaxLinear
,
Inc.
Class
A(Æ)
(2,500)
(59)
Microvision
,
Inc.(Æ)
(6,100)
(5)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
MongoDB,
Inc.(Æ)
(120)
(18)
NAPCO
Security
Technologies,
Inc.(Æ)
(2,830)
(84)
Park
City
Group,
Inc.(Æ)
(400)
(2)
Q2
Holdings,
Inc.(Æ)
(900)
(69)
Rogers
Corp.(Æ)
(40)
(7)
Science
Applications
International
Corp.
(800)
(69)
TTM
Technologies,
Inc.(Æ)
(9,300)
(95)
Ultra
Clean
Holdings(Æ)
(4,100)
(57)
Vishay
Intertechnology
,
Inc.
(200)
(3)
Zix
Corp.(Æ)
(8,900)
(81)
(1,299)
Utilities
-
(0.1)%
Chaparral
Energy,
Inc.
Class
A(Æ)
(1,700)
(8)
Earthstone
Energy,
Inc.
Class
A(Æ)
(1,100)
(7)
Extraction
Oil
&
Gas,
Inc.(Æ)
(12,900)
(56)
Globalstar
,
Inc.(Æ)
(8,900)
(4)
Halcon
Resources
Corp.(Æ)
(69,600)
(12)
HighPoint
Resources
Corp.(Æ)
(4,700)
(9)
Internap
Corp.(Æ)
(2,200)
(7)
Pattern
Energy
Group,
Inc.
Class
A
(3,600)
(86)
(189)
Total
Securities
Sold
Short
(proceeds
$10,326)
(10,176)
Other
Assets
and
Liabilities,
Net
-
(4.3%)
(9,994)
Net
Assets
-
100.0%
230,193
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
U.S.
Small
Cap
Equity
Fund
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Russell
2000
E-Mini
Index
Futures
97
USD
7,600
09/19
178
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
178
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Common
Stocks
Consumer
Discretionary
$
30,278
$
—
$
—
$
—
$
30,278
13
.
1
Consumer
Staples
6,762
—
—
—
6,762
2.
9
Energy
8,582
—
—
—
8,582
3.
7
Financial
Services
58,7
13
—
—
—
58,713
25
.
5
Health
Care
29,885
—
—
—
29,885
13
.
0
Materials
and
Processing
13,360
—
—
—
13,360
5.
8
Producer
Durables
38,595
—
—
—
38,595
16.
8
Technology
31,230
—
—
—
31,230
13.
6
Utilities
12,88
5
—
—
—
12,88
5
5.
6
Short-Term
Investments
—
—
—
9,813
9,813
4.3
Other
Securities
—
—
—
10,260
10,260
4.5
Total
Investments
230,
2
90
—
—
20,073
250,3
63
108.8
Securities
Sold
Short
(10,17
6
)
—
—
—
(10,17
6
)
(4.5)
Other
Assets
and
Liabilities,
Net
(4.3)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
178
—
—
—
178
0.1
Total
Other
Financial
Instruments
*
$
178
$
—
$
—
$
—
$
178
*
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
June
30,
2019,
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
June
30,
2019,
were
less
than
1%
of
net
assets.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
35
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
178
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
546
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
294
*
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.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
36
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
10,158
$
—
$
10,158
Total
Financial
and
Derivative
Assets
10,158
—
10,158
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
10,158
$
—
$
10,158
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
Nova
Scotia
$
164
$
—
$
—
$
164
Barclays
1,581
—
—
1,581
Citigroup
643
—
—
643
Fidelity
255
—
—
255
JPMorgan
Chase
2,030
—
—
2,030
Merrill
Lynch
1,176
—
—
1,176
Morgan
Stanley
4,309
—
—
4,309
Total
$
10,158
$
—
$
—
$
10,158
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
37
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Short
Sales
Securities
sold
short,
at
fair
value
$
10,176
$
—
$
10,176
Total
Financial
and
Derivative
Liabilities
10,176
—
10,176
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
10,176
$
—
$
10,176
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
State
Street
10,176
$
—
$
—
$
10,176
Total
$
10,176
$
—
$
—
$
10,176
*
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.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
38
U.S.
Small
Cap
Equity
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
228,606
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
250,363
Receivables:
Dividends
and
interest
.......................................................................................................................................................
203
Dividends
from
affiliated
funds
..........................................................................................................................................
17
Investments
sold
................................................................................................................................................................
488
Fund
shares
sold
................................................................................................................................................................
1
From
broker(a)
...................................................................................................................................................................
250
Variation
margin
on
futures
contracts
.................................................................................................................................
178
Prepaid
expenses
...........................................................................................................................................................................
1
Total
assets
.................................................................................................................................................
251,501
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
49
8
Fund
shares
redeemed
.......................................................................................................................................................
134
Accrued
fees
to
affiliates
....................................................................................................................................................
177
Other
accrued
expenses
.....................................................................................................................................................
63
Securities
sold
short,
at
fair
value(‡)
..............................................................................................................................................
10,176
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
10,
260
Total
liabilities
.............................................................................................................................................
21,308
Net
Assets
............................................................................................................................................................
$
230,193
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
39
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
15,59
6
Shares
of
beneficial
interest
...........................................................................................................................................................
167
Additional
paid-in
capital
..............................................................................................................................................................
214,4
30
Net
Assets
............................................................................................................................................................
$
230,193
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
13.77
Net
assets
...............................................................................................................................................................................
$
230,193,116
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
16,716,415
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
10,158
(‡)
Proceeds
on
securities
sold
short
$
10,32
6
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
20,073
(a)
Receivable
from
Broker
for
Futures
$
250
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
40
U.S.
Small
Cap
Equity
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
1,47
7
Dividends
from
affiliated
funds
.........................................................................................................................................
99
Securities
lending
income
(net)
.........................................................................................................................................
46
Total
investment
income
...............................................................................................................................................................
1,
6
2
2
Expenses
Advisory
fees
....................................................................................................................................................................
1,014
Administrative
fees
...........................................................................................................................................................
56
Custodian
fees
...................................................................................................................................................................
38
Transfer
agent
fees
............................................................................................................................................................
5
Professional
fees
...............................................................................................................................................................
39
Trustees’
fees
....................................................................................................................................................................
4
Printing
fees
......................................................................................................................................................................
18
Dividends
from
securities
sold
short
.................................................................................................................................
53
Interest
expense
paid
on
securities
sold
short
...................................................................................................................
9
Miscellaneous
...................................................................................................................................................................
9
Total
expenses
...............................................................................................................................................................................
1,245
Net
investment
income
(loss)
........................................................................................................................................................
377
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
2,0
41
Investments
in
affiliated
funds
..........................................................................................................................................
2
Futures
contracts
..............................................................................................................................................................
546
Securities
sold
short
..........................................................................................................................................................
86
Net
realized
gain
(loss)
..................................................................................................................................................................
2,67
5
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
29,65
4
Investments
in
affiliated
funds
..........................................................................................................................................
2
Futures
contracts
..............................................................................................................................................................
294
Securities
sold
short
..........................................................................................................................................................
150
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
30,
10
0
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
32,775
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
33,152
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
41
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
377
$
1,128
Net
realized
gain
(loss)
......................................................................................................................
2,67
5
13,506
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
30,
10
0
(41,214)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
33,152
(26,580)
Distributions
To
shareholders
.................................................................................................................................
(261)
(40,853)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(261)
(40,853)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(7,1
88
)
17,069
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
25,70
3
(50,364)
Net
Assets
Beginning
of
period
.................................................................................................................................
204,490
254,854
End
of
period
..........................................................................................................................................
$
230,19
3
$
204,490
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
350
$
4,66
8
420
$
6,505
Proceeds
from
reinvestment
of
distributions
19
261
3,169
40,85
3
Payments
for
shares
redeemed
(897)
(12,117)
(1,883)
(30,289)
Total
increase
(decrease)
(528)
$
(7,1
88
)
1,706
$
17,06
9
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
42
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
June
30,
2019(1)
11.86
.02
1.91
1.93
(.02)
—
—
December
31,
2018
16.40
.07
(1.94)
(1.87)
(.08)
(2.59)
—
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)
—
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
43
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d
)
(.02)
13.77
16.23
230,193
1.11
1.11
.
34
50
(2.67)
11.86
(11.97)
204,490
1.04
1.04
.45
80
(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
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
44
U.S.
Small
Cap
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019
,
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:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
166,513
Administration
fees
9,251
Transfer
agent
fees
814
Trustee
fees
63
$
176,641
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
U.S.
Cash
Management
Fund
$
9,000
$
21,423
$
20,614
$
2
$
2
$
9,813
$
99
$
—
U.S.
Cash
Collateral
Fund
7,689
35,842
33,271
—
—
10,260
162
—
$
16,689
$
57,265
$
53,885
$
2
$
2
$
20,073
$
261
$
—
Cost
of
Investments
$
220,284,638
Unrealized
Appreciation
$
30,904,743
Unrealized
Depreciation
(10,825,428)
Net
Unrealized
Appreciation
(Depreciation)
$
20,079,315
Russell
Investment
Funds
International
Developed
Markets
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
International
Developed
Markets
Fund
45
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
June
30,
2019
$
1,118.60
$
1,019.44
Expenses
Paid
During
Period*
$
5.67
$
5.41
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.08%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
46
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
95.4%
Argentina
-
0.1%
YPF
SA
-
ADR
15,366
280
Australia
-
2.2%
AGL
Energy,
Ltd.
22,890
322
Alumina,
Ltd.
30,704
50
Amcor,
Ltd.
Class
A
72,626
825
Aristocrat
Leisure,
Ltd.
41,327
894
ASX,
Ltd.
-
ADR
1,787
104
Australia
&
New
Zealand
Banking
Group,
Ltd.
-
ADR
18,262
362
Bendigo
&
Adelaide
Bank,
Ltd.
9,460
77
BHP
Billiton,
Ltd.
-
ADR
2,672
77
Caltex
Australia,
Ltd.
14,691
256
Commonwealth
Bank
of
Australia
-
ADR
17,507
1,019
CSL,
Ltd.
10,567
1,598
Dexus
Property
Group(Æ)(ö)
2,800
26
Macquarie
Group,
Ltd.
7,647
675
National
Australia
Bank,
Ltd.
-
ADR
14,149
266
Origin
Energy,
Ltd.
30,207
155
Santos,
Ltd.
6,804
34
Scentre
Group(ö)
21,507
58
South32,
Ltd.
Class
B
34,053
76
Stockland(ö)
76,800
225
Telstra
Corp.,
Ltd.
60,699
164
Treasury
Wine
Estates,
Ltd.
53,459
560
Wesfarmers,
Ltd.(Æ)
10,711
272
Westpac
Banking
Corp.
19,678
392
Woodside
Petroleum,
Ltd.
9,985
256
8,743
Austria
-
0.2%
Erste
Group
Bank
AG(Æ)
6,004
223
OMV
AB
6,014
293
Voestalpine
AG
4,135
128
644
Belgium
-
0.5%
Ageas
15,891
826
KBC
Groep
NV
11,222
736
Solvay
SA
2,210
229
1,791
Bermuda
-
0.0%
NWS
Holdings,
Ltd.
24,000
49
Brazil
-
0.2%
Pagseguro
Digital,
Ltd.
Class
A(Æ)(Ñ)
19,680
767
Canada
-
4.9%
Algonquin
Power
&
Utilities
Corp.
105,998
1,284
Alimentation
Couche-Tard,
Inc.
Class
B
9,310
586
ARC
Resources,
Ltd.
21,406
105
Atco,
Ltd.
Class
I
3,893
131
Bank
of
Montreal
7,077
535
Bank
of
Nova
Scotia
(The)
14,838
797
Barrick
Gold
Corp.
61,195
966
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
BCE,
Inc.
7,410
337
BEX
Portfolio
LLC(Æ)
50,994
581
Brookfield
Asset
Management,
Inc.
Class
A
6,061
290
Cameco
Corp.
Class
A
17,489
188
Canadian
Imperial
Bank
of
Commerce
5,421
426
Canadian
National
Railway
Co.
8,661
802
Canadian
Natural
Resources,
Ltd.
15,998
431
Celestica,
Inc.(Æ)
64,960
444
Cenovus
Energy,
Inc.
43,796
386
Enbridge,
Inc.
24,872
898
Encana
Corp.
82,888
425
First
Capital
Realty,
Inc.
Class
A
4,475
75
First
Quantum
Minerals,
Ltd.
55,188
524
Fortis,
Inc.
47,839
1,888
George
Weston,
Ltd.
1,870
142
Great-West
Lifeco
,
Inc.
15,478
356
Healthcare
Realty
Trust,
Inc.(Æ)
7,729
135
Husky
Energy,
Inc.
10,036
95
iA
Financial
Corp.,
Inc.
4,923
201
Imperial
Oil,
Ltd.
9,004
249
Kinross
Gold
Corp.(Æ)
107,441
417
Magna
International,
Inc.
Class
A
3,173
158
Manulife
Financial
Corp.
17,199
313
National
Bank
of
Canada
2,100
100
Power
Corp.
of
Canada
9,625
207
Power
Financial
Corp.
5,180
119
Quebecor,
Inc.
Class
B
3,680
88
RioCan
Real
Estate
Investment
Trust
7,625
151
Royal
Bank
of
Canada
-
GDR
13,941
1,108
Shaw
Communications,
Inc.
Class
B
5,973
122
Shopify,
Inc.
Class
A(Æ)
541
163
Sun
Life
Financial,
Inc.
20,051
830
Suncor
Energy,
Inc.
11,320
353
TC
Energy
Corp.(Æ)
7,942
394
Teck
Resources,
Ltd.
Class
B
7,383
170
Toronto
Dominion
Bank
21,168
1,237
Tourmaline
Oil
Corp.
9,270
118
19,325
China
-
1.7%
Alibaba
Group
Holding,
Ltd.
-
ADR
7,138
1,210
China
Telecom
Corp.,
Ltd.
Class
H
884,000
445
China
Tower
Corp.,
Ltd.
Class
H(Þ)
2,725,598
717
Ctrip.com
International,
Ltd.
-
ADR
10,275
379
Dongfeng
Motor
Group
Co.,
Ltd.
Class
H
64,000
52
Lenovo
Group,
Ltd.
1,484,257
1,151
Ping
An
Insurance
Group
Co.
of
China,
Ltd.
Class
H
70,966
854
Sunny
Optical
Technology
Group
Co.,
Ltd.
44,499
461
Tencent
Holdings,
Ltd.
29,084
1,317
6,586
Denmark
-
2.0%
AP
Moller
-
Maersk
A/S
Class
B
2,875
3,568
Coloplast
A/S
Class
B
7,294
826
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
47
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Danske
Bank
A/S
57,104
903
Drilling
Co.
of
1972
(The)(Æ)
1,163
90
DSV
A/S
7,516
738
Novo
Nordisk
A/S
Class
B
16,422
838
Scandinavian
Tobacco
Group
A/S(Þ)
89,190
1,040
8,003
Finland
-
0.8%
Elisa
OYJ
Class
A
1,574
77
Kone
OYJ
Class
B
10,234
604
Neste
OYJ
9,931
338
Nokia
OYJ
158,369
787
Nordea
Bank
AB
20,914
152
Sampo
OYJ
Class
A
3,443
162
Stora
Enso
OYJ
Class
R
6,919
81
Tikkurila
OYJ
34,754
585
UPM-
Kymmene
OYJ
15,122
402
Wartsila
OYJ
Abp
Class
B
6,190
90
3,278
France
-
10.4%
Air
France-KLM(Æ)
11,517
111
Air
Liquide
SA
Class
A
20,577
2,879
Airbus
Group
SE
6,001
851
Amundi
SA(Þ)
19,623
1,371
Arkema
SA
908
84
Atos
SE
2,375
199
AXA
SA
21,044
553
BNP
Paribas
SA
36,436
1,734
Bouygues
SA
-
ADR
25,844
957
Capgemini
SE
5,543
690
Carrefour
SA
6,475
125
Cie
de
Saint-Gobain
27,343
1,069
Cie
Generale
des
Etablissements
Michelin
SCA
Class
B
2,298
292
CNP
Assurances
700
16
Covivio
626
66
Credit
Agricole
SA
14,542
174
Danone
SA
3,732
317
Eiffage
SA
1,933
191
Engie
SA
76,047
1,155
Eurazeo
SE
1,724
120
Hermes
International
1,418
1,023
Klepierre
SA
-
GDR
7,335
246
L'Oreal
SA
11,937
3,399
LVMH
Moet
Hennessy
Louis
Vuitton
SE
-
ADR
271
115
Natixis
SA
23,693
96
Orange
SA
-
ADR
20,029
316
Pernod
Ricard
SA
5,545
1,022
Peugeot
SA
3,268
81
Publicis
Groupe
SA
-
ADR(Ñ)
39,783
2,101
Renault
SA
16,989
1,071
Rexel
SA
Class
H
247,398
3,141
Safran
SA
16,833
2,467
Sanofi
-
ADR
11,948
1,034
Schneider
Electric
SE
34,654
3,142
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
SCOR
SE
-
ADR
27,033
1,186
Societe
Generale
SA
43,723
1,106
Total
SA
78,996
4,419
Unibail
-
Rodamco
-Westfield
1,993
299
Vicat
SA
26,279
1,306
Vinci
SA
2,556
262
40,786
Germany
-
4.4%
Adidas
AG
2,428
750
Allianz
SE
3,743
902
BASF
SE
7,037
511
Bayer
AG
2,823
196
Bayerische
Motoren
Werke
AG
5,076
376
Beiersdorf
AG
4,418
530
Commerzbank
AG
18,403
132
Continental
AG
809
118
Covestro
AG(Þ)
2,703
137
Daimler
AG
6,385
355
Deutsche
Boerse
AG
19,557
2,766
Deutsche
Post
AG
3,305
109
Deutsche
Telekom
AG
12,896
223
E.ON
SE
38,503
418
Evonik
Industries
AG
2,666
78
Fresenius
SE
&
Co.
KGaA
1,750
95
GEA
Group
AG
24,810
705
Hannover
Rueck
SE
2,745
444
HeidelbergCement
AG
2,127
172
Infineon
Technologies
AG
-
ADR
33,312
589
Metro
AG(Æ)
18,001
110
Metro
Wholesale
&
Food
Specialist
AG
15,138
277
Muenchener
Rueckversicherungs-
Gesellschaft
AG
in
Muenchen
3,912
982
RWE
AG
24,094
594
Salzgitter
AG
2,163
62
SAP
SE
-
ADR
24,960
3,415
SAP
SE
1,638
225
Siemens
AG
12,498
1,486
Symrise
AG
2,932
282
Uniper
SE
2,518
76
Vonovia
SE
2,035
97
17,212
Hong
Kong
-
3.3%
AIA
Group,
Ltd.
235,008
2,542
Bank
of
East
Asia,
Ltd.
(The)
9,000
25
China
Mobile,
Ltd.
36,500
332
China
Resources
Power
Holdings
Co.,
Ltd.
1,356,417
1,980
China
Unicom
Hong
Kong,
Ltd.
1,014,000
1,114
CK
Asset
Holdings,
Ltd.
76,549
598
CK
Hutchison
Holdings,
Ltd.
Class
B
171,313
1,685
CK
Infrastructure
Holdings,
Ltd.
56,500
460
Hang
Seng
Bank,
Ltd.
5,200
129
Henderson
Land
Development
Co.,
Ltd.
35,200
194
Hongkong
Land
Holdings,
Ltd.
39,100
252
Hysan
Development
Co.,
Ltd.
20,000
103
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
48
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Jardine
Matheson
Holdings,
Ltd.
5,400
340
Jardine
Strategic
Holdings,
Ltd.
1,600
61
Kerry
Properties,
Ltd.
18,500
78
Link
REIT(ö)
59,576
733
MTR
Corp.,
Ltd.
122,000
822
New
World
Development
Co.,
Ltd.
42,000
65
Power
Assets
Holdings,
Ltd.
7,500
54
Sun
Hung
Kai
Properties,
Ltd.
13,000
221
Swire
Pacific,
Ltd.
Class
A
16,000
197
Swire
Properties,
Ltd.
18,416
74
Techtronic
Industries
Co.,
Ltd.
88,271
677
WH
Group,
Ltd.(Þ)
137,000
139
Wharf
Holdings,
Ltd.
(The
32,000
85
Wharf
Real
Estate
Investment
Co.,
Ltd.
5,000
35
Wheelock
&
Co.,
Ltd.
12,000
86
13,081
India
-
1.9%
Bharti
Infratel
,
Ltd.
264,250
1,023
Canara
Bank(Æ)
32,566
134
HDFC
Bank,
Ltd.
-
ADR
36,419
4,737
Infosys,
Ltd.
-
ADR(Ñ)
123,662
1,323
NTPC,
Ltd.
28,998
59
7,276
Indonesia
-
0.2%
Bank
Central
Asia
Tbk
PT
383,295
814
Ireland
-
0.3%
CRH
PLC
7,610
249
Paddy
Power
Betfair
PLC
1,019
77
Willis
Towers
Watson
PLC(Æ)
3,345
640
966
Israel
-
0.2%
Azrieli
Group,
Ltd.
915
61
Bank
Hapoalim
BM(Æ)
38,873
290
Bank
Leumi
Le-Israel
BM
48,024
347
Bezeq
The
Israeli
Telecommunication
Corp.,
Ltd.
33,297
25
Israel
Discount
Bank,
Ltd.
Class
A
16,577
68
Mizrahi
Tefahot
Bank,
Ltd.(Æ)
1,972
46
837
Italy
-
3.2%
Assicurazioni
Generali
SpA
76,220
1,433
Banca
Popolare
dell'Emilia
Romagna
SC
46,535
190
Davide
Campari-Milano
SpA
77,008
754
Enel
SpA
390,394
2,727
ENI
SpA
-
ADR
148,087
2,453
FinecoBank
Banca
Fineco
SpA
53,187
593
Intesa
Sanpaolo
SpA
105,897
227
Mediobanca
SpA
21,004
217
Moncler
SpA
12,797
547
Poste
Italiane
SpA
(Þ)
14,442
152
Saipem
SpA
(Æ)
59,774
299
Snam
Rete
Gas
SpA
56,597
282
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Telecom
Italia
SpA
(Æ)
830,901
454
Terna
Rete
Elettrica
Nazionale
SpA
31,532
201
UniCredit
SpA
171,656
2,113
12,642
Japan
-
18.1%
Aisin
Seiki
Co.,
Ltd.
3,000
103
ANA
Holdings,
Inc.
8,000
265
Aozora
Bank,
Ltd.
9,000
216
Asahi
Diamond
Industrial
Co.,
Ltd.
28,600
175
Asahi
Glass
Co.,
Ltd.
4,100
142
Asahi
Kasei
Corp.
18,000
192
Astellas
Pharma,
Inc.
19,600
280
Benesse
Holdings,
Inc.
5,100
119
BML,
Inc.
39,900
1,135
Bridgestone
Corp.
19,600
773
Canon,
Inc.
35,300
1,034
Central
Japan
Railway
Co.
1,900
381
Chiba
Bank,
Ltd.
(The)
33,000
162
Chubu
Electric
Power
Co.,
Inc.
19,300
271
Citizen
Watch
Co.,
Ltd.
6,900
35
Concordia
Financial
Group,
Ltd.
56,200
210
Cosel
Co.,
Ltd.
57,900
619
Credit
Saison
Co.,
Ltd.
2,100
25
Dai
Nippon
Printing
Co.,
Ltd.
9,700
208
Daicel
Chemical
Industries,
Ltd.
8,200
73
Dai-ichi
Life
Holdings,
Inc.
98,850
1,496
Daiseki
Co.,
Ltd.
25,200
632
Daito
Trust
Construction
Co.,
Ltd.
2,900
369
Daiwa
House
Industry
Co.,
Ltd.
8,700
254
Daiwa
Securities
Group,
Inc.
31,000
136
DeNA
Co.,
Ltd.
10,700
205
Denso
Corp.
11,900
502
East
Japan
Railway
Co.
3,600
337
Ebara
Corp.
53,400
1,454
Eisai
Co.,
Ltd.
8,540
482
Electric
Power
Development
Co.,
Ltd.
6,800
154
Fuji
Heavy
Industries,
Ltd.
12,900
314
Fuji
Media
Holdings,
Inc.
3,700
52
FUJIFILM
Holdings
Corp.
4,800
244
Fujitsu,
Ltd.
37,600
2,617
Fukuoka
Financial
Group,
Inc.
6,200
114
Fukushima
Industries
Corp.
4,500
148
Gree
,
Inc.
35,900
167
Hankyu
Hanshin
Holdings,
Inc.
5,800
208
Hirose
Electric
Co.,
Ltd.
5,300
593
Hitachi
Metals,
Ltd.
249,200
2,823
Hitachi,
Ltd.
4,900
180
Honda
Motor
Co.,
Ltd.
176,000
4,558
Ibiden
Co.,
Ltd.
7,100
125
Icom
,
Inc.
19,500
440
Idemitsu
Kosan
Co.,
Ltd.
3,057
93
Iida
Group
Holdings
Co.,
Ltd.
63,900
1,034
Inpex
Corp.
301,200
2,745
Isuzu
Motors,
Ltd.
106,000
1,213
ITOCHU
Corp.
23,800
456
Japan
Airlines
Co.,
Ltd.
7,200
230
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
49
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Japan
Exchange
Group,
Inc.
2,500
40
Japan
Post
Bank
Co.,
Ltd.
Class
A
20,600
209
Japan
Post
Holdings
Co.,
Ltd.
30,900
350
Japan
Tobacco,
Inc.
17,800
393
JFE
Holdings,
Inc.
5,800
85
JGC
Corp.
15,500
214
JSR
Corp.
9,300
147
JX
Holdings,
Inc.
79,100
395
Kajima
Corp.
9,000
124
Kamigumi
Co.,
Ltd.
10,000
237
Kansai
Electric
Power
Co.,
Inc.
(The)
1,000
11
KDDI
Corp.
27,900
711
Kirin
Holdings
Co.,
Ltd.
7,800
168
Kobe
Steel,
Ltd.
3,000
20
Komatsu,
Ltd.
20,160
489
Konica
Minolta,
Inc.
10,900
106
Kuraray
Co.,
Ltd.
1,800
22
Kyushu
Electric
Power
Co.,
Inc.
5,100
50
Kyushu
Railway
Co.
500
15
Marubeni
Corp.
44,800
297
Mazda
Motor
Corp.
16,900
177
Medipal
Holdings
Corp.
6,000
133
Mitsubishi
Chemical
Holdings
Corp.
24,700
173
Mitsubishi
Corp.
18,100
478
Mitsubishi
Electric
Corp.
23,800
315
Mitsubishi
Estate
Co.,
Ltd.
17,100
319
Mitsubishi
Heavy
Industries,
Ltd.
19,700
859
Mitsubishi
Materials
Corp.
5,700
163
Mitsubishi
UFJ
Financial
Group,
Inc.
255,500
1,221
Mitsubishi
UFJ
Lease
&
Finance
Co.,
Ltd.
9,000
48
Mitsui
&
Co.,
Ltd.
85,700
1,398
Mitsui
Chemicals,
Inc.
5,300
132
Mizuho
Financial
Group,
Inc.
600,800
872
MS&AD
Insurance
Group
Holdings,
Inc.
31,500
1,002
Nidec
Corp.
3,850
528
Nikon
Corp.
7,500
106
Nintendo
Co.,
Ltd.
2,710
996
Nippon
Steel
&
Sumitomo
Metal
Corp.
13,900
239
Nippon
Telegraph
&
Telephone
Corp.
10,203
475
Nippon
Television
Holdings,
Inc.
16,700
248
Nissan
Motor
Co.,
Ltd.
121,200
867
Nitto
Denko
Corp.
3,800
187
Nomura
Holdings,
Inc.
158,500
563
Nomura
Real
Estate
Holdings,
Inc.
3,100
67
NTT
DOCOMO,
Inc.
25,500
595
Obayashi
Corp.
21,400
212
Oji
Holdings
Corp.
23,800
138
ORIX
Corp.
26,200
392
Osaka
Gas
Co.,
Ltd.
8,400
147
Otsuka
Holdings
Co.,
Ltd.
3,500
114
Qol
Holdings
Co.,
Ltd.
46,700
722
Resona
Holdings,
Inc.
374,600
1,565
Ricoh
Co.,
Ltd.
11,600
116
Secom
Co.,
Ltd.
12,300
1,058
Secom
Joshinetsu
Co.,
Ltd.
7,050
230
Seibu
Holdings,
Inc.
3,600
60
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Sekisui
Chemical
Co.,
Ltd.
4,700
71
Sekisui
House,
Ltd.
26,000
429
Shimamura
Co.,
Ltd.
2,300
172
Shimizu
Corp.
6,000
50
Shin-Etsu
Chemical
Co.,
Ltd.
5,735
535
Shingakukai
Co.,
Ltd.
2,300
13
Shionogi
&
Co.,
Ltd.
100
6
SoftBank
Group
Corp.
13,200
636
Sompo
Japan
Nipponkoa
Holdings,
Inc.
22,100
855
Sony
Corp.
9,510
497
Sumitomo
Chemical
Co.,
Ltd.
25,000
116
Sumitomo
Corp.
31,600
480
Sumitomo
Electric
Industries,
Ltd.
21,000
276
Sumitomo
Metal
Mining
Co.,
Ltd.
5,000
150
Sumitomo
Mitsui
Financial
Group,
Inc.
75,000
2,656
Sumitomo
Mitsui
Trust
Holdings,
Inc.
8,500
309
Sumitomo
Rubber
Industries,
Ltd.
1,700
20
T&D
Holdings,
Inc.
24,900
272
Taiheiyo
Cement
Corp.
5,200
158
Takeda
Pharmaceutical
Co.,
Ltd.
25,400
903
Teijin,
Ltd.
7,000
120
THK
Co.,
Ltd.
5,600
135
TIS,
Inc.
100
5
Toho
Holdings
Co.,
Ltd.
23,100
519
Tohoku
Electric
Power
Co.,
Inc.
26,800
271
Tokio
Marine
Holdings,
Inc.
37,800
1,897
Tokyo
Electric
Power
Co.
Holdings,
Inc.
(Æ)
33,900
177
Tokyo
Electron,
Ltd.
2,900
408
Tokyo
Gas
Co.,
Ltd.
12,000
282
Tokyu
Fudosan
Holdings
Corp.
23,800
132
Toppan
Printing
Co.,
Ltd.
19,500
295
Toray
Industries,
Inc.
6,700
51
Toyota
Industries
Corp.
4,100
226
Toyota
Motor
Corp.
30,500
1,896
Toyota
Tsusho
Corp.
8,600
261
Transcosmos
,
Inc.
28,400
635
West
Japan
Railway
Co.
4,700
381
Yahoo!
Japan
Corp.
601,600
1,768
Yamada
Denki
Co.,
Ltd.
55,100
244
Yamaguchi
Financial
Group,
Inc.
4,100
28
Yamato
Kogyo
Co.,
Ltd.
-
GDR
36,400
1,064
71,190
Luxembourg
-
0.3%
ArcelorMittal
SA(Æ)
7,875
141
Aroundtown
SA
12,829
106
RTL
Group
SA
2,936
151
Spotify
Technology
SA(Æ)
4,793
700
Tenaris
SA
10,649
140
1,238
Macao
-
0.2%
Sands
China,
Ltd.
151,625
727
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Mexico
-
0.1%
Grupo
Televisa
SAB
-
ADR
55,133
465
Netherlands
-
4.4%
ABN
AMRO
Group
NV(Þ)
6,973
149
Aegon
NV
41,917
209
ASML
Holding
NV
3,705
775
Euronext
NV(Þ)
7,422
562
Exor
NV
4,366
305
Ferrari
NV
9
,
822
1,591
Heineken
NV
17,256
1,926
ING
Groep
NV
286,116
3,318
InterXion
Holding
NV(Æ)
10,680
813
Koninklijke
Ahold
Delhaize
NV
19,425
437
Koninklijke
KPN
NV
339,454
1,042
NN
Group
NV
6,815
274
Randstad
Holding
NV
1,958
108
Royal
Dutch
Shell
PLC
Class
A
150,304
4,893
TNT
NV
-
ADR
55,383
96
Yandex
NV
Class
A(Æ)
17,140
651
17,149
New
Zealand
-
0.2%
a2
Milk
Co.,
Ltd.(Æ)
70,367
686
Spark
New
Zealand,
Ltd.
29,159
78
764
Norway
-
0.8%
DNB
ASA
14,926
278
Marine
Harvest
ASA
10,241
239
Norsk
Hydro
ASA
109,339
392
Orkla
ASA
170,465
1,514
Statoil
ASA
Class
N
14,849
294
Telenor
ASA
10,428
222
2,939
Portugal
-
0.2%
Energias
de
Portugal
SA
69,724
265
Galp
Energia
SGPS
SA
Class
B
42,325
653
918
Russia
-
0.6%
Gazprom
PJSC
-
ADR
173,169
1,269
Lukoil
PJSC
-
ADR
6,442
544
Sberbank
of
Russia
PJSC
-
ADR
32,641
502
2,315
Singapore
-
1.8%
Ascendas
Real
Estate
Investment
Trust(ö)
277,600
640
CapitaLand,
Ltd.
85,700
224
DBS
Group
Holdings,
Ltd.
107,100
2,056
Keppel
Corp.,
Ltd.
-
ADR
6,800
34
Oversea-Chinese
Banking
Corp.,
Ltd.
16,222
137
Singapore
Airlines,
Ltd.(Æ)
24,300
167
Singapore
Technologies
Engineering,
Ltd.
109,000
334
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Singapore
Telecommunications,
Ltd.
287,800
746
United
Overseas
Bank,
Ltd.
10,500
203
Venture
Corp.,
Ltd.
12,800
154
Wilmar
International,
Ltd.
781,600
2,142
Yangzijiang
Shipbuilding
Holdings,
Ltd.
70,800
80
6,917
South
Africa
-
0.2%
Anglo
American
Platinum,
Ltd.
2,219
132
Gold
Fields,
Ltd.
-
ADR
62,677
339
Impala
Platinum
Holdings,
Ltd.(Æ)
32,422
161
MTN
Group,
Ltd.
41,199
312
944
South
Korea
-
1.8%
CLIO
Cosmetics
Co.,
Ltd.(Æ)
20,561
395
Grand
Korea
Leisure
Co.,
Ltd.
41,951
745
Hana
Financial
Group,
Inc.
30,564
991
Hyundai
Motor
Co.
15,412
1,868
Kangwon
Land,
Inc.
42,754
1,120
KB
Financial
Group,
Inc.
3,577
142
KT
Corp.
-
ADR
8,334
103
POSCO
5,479
1,160
Samsung
Electronics
Co.,
Ltd.
12,959
528
Shinhan
Financial
Group
Co.,
Ltd.
2,528
98
7,150
Spain
-
2.3%
ACS
Actividades
de
Construccion
y
Servicios
SA
4,727
189
Aena
SA(Þ)
1,722
341
Banco
Bilbao
Vizcaya
Argentaria
SA
-
ADR
62,751
351
Banco
Santander
SA
-
ADR
112,243
522
Bankia
SA
334,906
791
Bankinter
SA
14,092
97
CaixaBank
SA
157,288
450
Cellnex
Telecom
SA(Æ)(Þ)
89,689
3,321
Enagas
SA
11,296
302
Endesa
SA
-
ADR
15,547
400
Gas
Natural
SDG
SA
10,383
286
Iberdrola
SA
32,129
320
Industria
de
Diseno
Textil
SA
14,864
447
Mapfre
SA
31,672
93
Red
Electrica
Corp.
SA
14,192
295
Repsol
SA
-
ADR
23,078
362
Telefonica
SA
-
ADR
56,169
461
9,028
Sweden
-
1.4%
Assa
Abloy
AB
Class
B
35,141
796
Atlas
Copco
AB(Æ)
23,276
744
Investor
AB
Class
B
1,564
75
Kinnevik
AB(Æ)
3,988
104
Sandvik
AB
25,591
470
Skandinaviska
Enskilda
Banken
AB
Class
A
36,105
334
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
51
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Skanska
AB
Class
B
5,334
96
SKF
AB
Class
B
16,922
311
Svenska
Handelsbanken
AB
Class
A
26,730
265
Swedbank
AB
Class
A
16,397
246
Telefonaktiebolaget
LM
Ericsson
Class
B
88,981
845
Telia
Co.
AB
97,916
435
Trelleborg
AB
Class
B
30,275
430
Volvo
AB
Class
B
11,120
176
5,327
Switzerland
-
8.2%
ABB,
Ltd.
59,912
1,203
Adecco
SA
15,865
953
Alcon,
Inc.(Æ)
8,300
513
Baloise
Holding
AG
1,774
314
Chocoladefabriken
Lindt
&
Spruengli
AG
43
313
Cie
Financiere
Richemont
SA
7,629
648
Coca-Cola
HBC
AG
-
ADR(Æ)
23,225
879
Credit
Suisse
Group
AG(Æ)
109,543
1,314
Glencore
PLC(Æ)
77,853
271
Julius
Baer
Group,
Ltd.(Æ)
22,360
998
Kuehne
&
Nagel
International
AG
1,623
241
LafargeHolcim
,
Ltd.(Æ)
27,433
1,340
Nestle
SA
41,548
4,301
Novartis
AG
68,752
6,289
Pargesa
Holding
SA
1,090
84
Partners
Group
Holding
AG
495
389
Roche
Holding
AG
14,315
4,028
SGS
SA
107
273
Sika
AG
10,847
1,851
Swiss
Life
Holding
AG
952
472
Swiss
Re
AG
7,695
782
Swisscom
AG
790
397
Temenos
AG(Æ)
4,571
818
UBS
Group
AG(Æ)
237,793
2,826
Zurich
Insurance
Group
AG
1,606
559
32,056
Taiwan
-
0.9%
Catcher
Technology
Co.,
Ltd.
138,513
994
Hon
Hai
Precision
Industry
Co.,
Ltd.
472,184
1,178
Innolux
Corp.
209,000
49
MediaTek
,
Inc.
59,000
598
Shin
Kong
Financial
Holding
Co.,
Ltd.
219,000
67
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
87,000
664
3,550
United
Kingdom
-
14.4%
3i
Group
PLC
20,545
291
Admiral
Group
PLC
4,177
117
Anglo
American
PLC
60,795
1,739
AstraZeneca
PLC
51,593
4,212
Aviva
PLC
258,977
1,374
Babcock
International
Group
PLC
37,831
220
Barclays
PLC
567,814
1,082
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Barratt
Developments
PLC
13,413
98
Berkeley
Group
Holdings
PLC
4,717
224
BHP
Group
PLC
29,294
748
BP
PLC
352,870
2,466
BP
PLC
-
ADR
8,676
362
British
American
Tobacco
PLC
30,483
1,064
British
Land
Co.
PLC
(The)
27,531
188
BT
Group
PLC
287,549
719
Centrica
PLC
269,045
300
Compass
Group
PLC
3,229
77
Diageo
PLC
86,917
3,743
Direct
Line
Insurance
Group
PLC
67,607
285
Experian
PLC
7,181
218
Fevertree
Drinks
PLC
16,136
477
Fiat
Chrysler
Automobiles
NV
12,720
177
Foxtons
Group
PLC(Æ)
415,868
280
GlaxoSmithKline
PLC
-
ADR
15,990
320
HSBC
Holdings
PLC
573,816
4,787
ITV
PLC
100,487
138
J
Sainsbury
PLC
537,902
1,339
John
Wood
Group
PLC
375,496
2,169
Just
Eat
PLC(Æ)
56,859
452
Kingfisher
PLC
74,378
203
Land
Securities
Group
PLC
47,368
502
Legal
&
General
Group
PLC
91,982
315
Lloyds
Banking
Group
PLC
1,074,831
774
London
Stock
Exchange
Group
PLC
35,738
2,490
Lookers
PLC
258,349
167
LSL
Property
Services
PLC
281,496
751
Marks
&
Spencer
Group
PLC
175,249
470
National
Grid
PLC
26,899
286
Pearson
PLC
7,320
76
Persimmon
PLC
Class
A
6,006
152
Prudential
PLC
21,676
472
Reckitt
Benckiser
Group
PLC
2,976
235
Rio
Tinto
PLC
12,153
750
Royal
Bank
of
Scotland
Group
PLC
455,684
1,272
RSA
Insurance
Group
PLC
27,558
202
Smith
&
Nephew
PLC
37,755
819
St.
James's
Place
PLC
15,239
213
Standard
Chartered
PLC
351,823
3,201
Standard
Life
Aberdeen
PLC(Æ)
117,740
441
Stock
Spirits
Group
PLC
178,557
500
Taylor
Wimpey
PLC
66,138
133
TechnipFMC
PLC
72,640
1,884
Tesco
PLC
737,493
2,128
Travis
Perkins
PLC
186,916
3,032
Unilever
NV
56,547
3,445
Unilever
PLC
2,116
131
United
Utilities
Group
PLC
8,004
80
Vertu
Motors
PLC
544,070
278
Vodafone
Group
PLC
943,250
1,547
Wm
Morrison
Supermarkets
PLC
29,824
76
56,691
United
States
-
3.0%
Abbott
Laboratories
25,312
2,129
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
52
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Alphabet,
Inc.
Class
C(Æ)
1,469
1,588
Bausch
&
Lomb,
Inc.(Æ)
10,401
266
Carnival
PLC
5,320
237
Facebook,
Inc.
Class
A(Æ)
4,156
802
MasterCard,
Inc.
Class
A
9,273
2,454
Mylan
NV(Æ)
64,402
1,226
News
Corp.
Class
A
39,174
528
Visa,
Inc.
Class
A
9,192
1,595
Wausau
Paper
Corp.
72,811
918
11,743
Total
Common
Stocks
(cost
$375,867)
374,191
Preferred
Stocks
-
0.8%
Brazil
-
0.0%
Telefonica
Brasil
SA
1.05%
(Ÿ)
9,136
119
Germany
-
0.8%
Porsche
Automobil
Holding
SE
2.738%
(Ÿ)
5,955
387
Volkswagen
AG
2.690%
(Ÿ)
16,887
2,846
3,233
Total
Preferred
Stocks
(cost
$3,012)
3,352
Warrants
&
Rights
-
0.0%
Spain
-
0.0%
ACS
Actividades
de
Construccion
y
Servicios
SA(Æ)
2019
Rights
1,333
2
Repsol
,
SA(Æ)
2019
Rights
32,998
18
20
Total
Warrants
&
Rights
(cost
$21)
20
Short-Term
Investments
-
3.3%
Ireland
-
0.2%
Bank
of
Ireland
Group
PLC
3.471%
due
08/30/19
(ž)
EUR
157
821
United
States
-
3.1%
U.S.
Cash
Management
Fund(@)
12,28
0,718
(∞)
12,286
Total
Short-Term
Investments
(cost
$13,470)
13,107
Other
Securities
-
0.5%
U.S.
Cash
Collateral
Fund(×)(@)
1,853,745
(∞)
1,854
Total
Other
Securities
(cost
$1,854)
1,854
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Total
Investments
100.0%
(identified
cost
$394,224)
392,524
Other
Assets
and
Liabilities,
Net
-
(0.0%)
(116)
Net
Assets
-
100.0%
392,408
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
53
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
2.0%
ABN
AMRO
Group
NV
06/26/19
EUR
6,973
21.21
148
149
Aena
SA
01/24/19
EUR
1,722
174.15
300
341
Amundi
SA
02/21/19
EUR
19,623
64.62
1,268
1,371
Cellnex
Telecom
SA
06/19/17
EUR
89,689
26.09
2,339
3,321
China
Tower
Corp.,
Ltd.
01/03/19
HKD
2,725,598
0.21
575
717
Covestro
AG
06/26/19
EUR
2,703
49.99
135
137
Euronext
NV
04/25/19
EUR
7,422
69.64
517
562
Poste
Italiane
SpA
06/26/19
EUR
14,442
10.45
151
152
Scandinavian
Tobacco
Group
A/S
12/06/17
DKK
89,190
16.91
1,509
1,040
WH
Group,
Ltd.
06/26/19
HKD
137,000
1.02
139
139
7,929
For
a
description
of
restricted
securities
see
note
7
in
the
Notes
to
Financial
Statements.
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Euro
STOXX
50
Index
Futures
126
EUR
4,367
09/19
150
MSCI
EAFE
Index
Futures
61
USD
5,866
09/19
153
S&P
Energy
Select
Sector
Index
Futures
44
USD
2,827
09/19
126
S&P/TSX
60
Index
Futures
110
CAD
21,509
09/19
148
SPI
200
Index
Futures
33
AUD
5,411
09/19
56
TOPIX
Index
Futures
170
JPY
2,636,700
09/19
(89)
Short
Positions
FTSE
100
Index
Futures
62
GBP
4,569
09/19
(63)
Hang
Seng
Index
Futures
53
HKD
75,538
07/19
(101)
MSCI
Emerging
Markets
Index
Futures
187
USD
9,849
09/19
(366)
NASDAQ
100
E-Mini
Index
Futures
19
USD
2,924
09/19
(72)
S&P
500
E-Mini
Index
Futures
173
USD
25,467
09/19
(439)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(497)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
94
AUD
135
07/01/19
—
Bank
of
America
USD
5,250
JPY
564,829
07/01/19
(12)
Bank
of
America
USD
2,461
JPY
265,599
07/02/19
3
Bank
of
America
HKD
376
USD
48
07/02/19
—
Bank
of
America
SGD
3,272
USD
2,416
07/01/19
(2)
Bank
of
Montreal
USD
3,101
AUD
4,457
09/18/19
35
Bank
of
Montreal
USD
3,285
CAD
4,360
09/18/19
49
Bank
of
Montreal
USD
4,299
JPY
462,975
09/18/19
20
Bank
of
Montreal
NOK
15,620
USD
1,812
09/18/19
(23)
Bank
of
New
York
USD
3,102
AUD
4,457
09/18/19
34
Bank
of
New
York
USD
3,286
CAD
4,360
09/18/19
48
Bank
of
New
York
USD
4,295
JPY
462,975
09/18/19
23
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
54
International
Developed
Markets
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
New
York
HKD
13,990
USD
1,788
09/18/19
(3)
Bank
of
New
York
NOK
15,620
USD
1,813
09/18/19
(22)
Commonwealth
Bank
of
Australia
USD
3,103
AUD
4,457
09/18/19
33
Commonwealth
Bank
of
Australia
USD
3,287
CAD
4,360
09/18/19
47
Commonwealth
Bank
of
Australia
USD
4,297
JPY
462,975
09/18/19
22
Commonwealth
Bank
of
Australia
HKD
13,990
USD
1,788
09/18/19
(4)
Commonwealth
Bank
of
Australia
NOK
15,620
USD
1,813
09/18/19
(22)
Royal
Bank
of
Canada
USD
3,104
AUD
4,457
09/18/19
32
Royal
Bank
of
Canada
USD
3,288
CAD
4,360
09/18/19
46
Royal
Bank
of
Canada
USD
194
HKD
1,512
07/03/19
—
Royal
Bank
of
Canada
USD
4,301
JPY
462,975
09/18/19
18
Royal
Bank
of
Canada
USD
45
SGD
61
07/02/19
—
Royal
Bank
of
Canada
USD
126
ZAR
1,794
07/01/19
1
Royal
Bank
of
Canada
AUD
123
USD
86
07/02/19
—
Royal
Bank
of
Canada
HKD
13,990
USD
1,788
09/18/19
(4)
Royal
Bank
of
Canada
JPY
14,531
USD
135
07/03/19
—
Royal
Bank
of
Canada
NOK
15,620
USD
1,814
09/18/19
(21)
Standard
Chartered
HKD
13,990
USD
1,787
09/18/19
(4)
State
Street
USD
3,104
AUD
4,457
09/18/19
33
State
Street
USD
43
BRL
164
07/01/19
—
State
Street
USD
40
BRL
152
07/02/19
—
State
Street
USD
462
CAD
605
07/02/19
—
State
Street
USD
3,288
CAD
4,360
09/18/19
46
State
Street
USD
148
DKK
973
07/01/19
—
State
Street
USD
328
DKK
2,155
07/02/19
—
State
Street
USD
279
EUR
246
07/01/19
—
State
Street
USD
626
EUR
551
07/02/19
—
State
Street
USD
2,432
EUR
2,133
09/18/19
9
State
Street
USD
83
GBP
65
07/01/19
—
State
Street
USD
1,123
GBP
885
07/02/19
1
State
Street
USD
13
ILS
45
07/01/19
—
State
Street
USD
4,299
JPY
462,975
09/18/19
20
State
Street
USD
248
SEK
2,302
07/01/19
—
State
Street
USD
579
SEK
5,384
07/02/19
1
State
Street
USD
280
ZAR
3,958
07/02/19
1
State
Street
USD
198
ZAR
2,789
07/03/19
—
State
Street
CAD
568
USD
434
07/03/19
—
State
Street
CHF
1,056
USD
1,081
07/01/19
(1)
State
Street
CHF
3,090
USD
3,164
07/02/19
(1)
State
Street
CHF
8,250
USD
8,367
09/18/19
(143)
State
Street
DKK
11,970
USD
1,828
09/18/19
(7)
State
Street
GBP
3,091
USD
3,955
09/18/19
16
State
Street
HKD
13,990
USD
1,788
09/18/19
(4)
State
Street
NOK
3,055
USD
359
07/01/19
—
State
Street
NOK
17
USD
2
07/02/19
—
State
Street
NOK
15,620
USD
1,813
09/18/19
(22)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
243
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
55
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Common
Stocks
Argentina
$
280
$
—
$
—
$
—
$
280
0.1
Australia
825
7,918
—
—
8,743
2.
2
Austria
—
644
—
—
644
0.2
Belgium
—
1,791
—
—
1,791
0.5
Bermuda
—
49
—
—
49
—
*
Brazil
767
—
—
—
767
0.2
Canada
19,325
—
—
—
19,325
4.9
China
1,589
4,997
—
—
6,586
1.7
Denmark
—
8,003
—
—
8,003
2.0
Finland
—
3,278
—
—
3,278
0.
8
France
—
40,786
—
—
40,786
10.
4
Germany
3,415
13,797
—
—
17,212
4.4
Hong
Kong
—
13,081
—
—
13,081
3.3
India
6,060
1,216
—
—
7,276
1.9
Indonesia
—
814
—
—
814
0.2
Ireland
640
326
—
—
966
0.3
Israel
—
837
—
—
837
0.2
Italy
—
12,642
—
—
12,642
3.2
Japan
—
71,190
—
—
71,190
18.1
Luxembourg
700
538
—
—
1,238
0.3
Macao
—
727
—
—
727
0.2
Mexico
465
—
—
—
465
0.1
Netherlands
2,172
14,977
—
—
17,149
4.4
New
Zealand
—
764
—
—
764
0.2
Norway
—
2,939
—
—
2,939
0.8
Portugal
—
918
—
—
918
0.2
Russia
—
2,315
—
—
2,315
0.6
Singapore
—
6,917
—
—
6,917
1.8
South
Africa
339
605
—
—
944
0.2
South
Korea
103
7,047
—
—
7,150
1.8
Spain
—
9,028
—
—
9,028
2.3
Sweden
—
5,327
—
—
5,327
1.4
Switzerland
—
32,05
6
—
—
32,05
6
8.2
Taiwan
—
3,550
—
—
3,550
0.9
United
Kingdom
2,246
54,445
—
—
56,691
14.4
United
States
10,322
1,421
—
—
11,743
3.0
Preferred
Stocks
119
3,233
—
—
3,352
0.
8
Warrants
&
Rights
20
—
—
—
20
—
*
Short-Term
Investments
—
82
1
—
12,286
13,10
7
3.
3
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
56
International
Developed
Markets
Fund
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Other
Securities
—
—
—
1,854
1,854
0.5
Total
Investments
49,387
328,99
7
—
14,140
392,524
100.0
Other
Assets
and
Liabilities,
Net
(—)*
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
633
—
—
—
633
0.2
Foreign
Currency
Exchange
Contracts
9
529
—
—
538
0.1
A
Liabilities
Futures
Contracts
(1,130)
—
—
—
(1,130)
(0.3)
Foreign
Currency
Exchange
Contracts
(16)
(279)
—
—
(295)
(0.1)
Total
Other
Financial
Instruments
**
$
(504)
$
250
$
—
$
—
$
(254)
*
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
June
30,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
Amounts
in
thousands
Sector
Exposure
Fair
Value
$
Consumer
Discretionary
..........................................................
45,573
Consumer
Staples
...................................................................
21,870
Energy
....................................................................................
30,026
Financial
Services
...................................................................
106,393
Health
Care
.............................................................................
27,960
Materials
and
Processing
........................................................
36,315
Producer
Durables
..................................................................
43,397
Technology
..............................................................................
39,660
Utilities
...................................................................................
26,349
Warrants
and
Rights
................................................................
20
Short-Term
Investments
..........................................................
13,107
Other
Securities
......................................................................
1,854
Total
Investments
....................................................................
392,524
Russell
Investment
Funds
International
Developed
Markets
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
57
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
538
Variation
margin
on
futures
contracts*
633
—
Total
$
633
$
538
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
1,130
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
295
Total
$
1,130
$
295
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
(31)
$
—
Foreign
currency
exchange
contracts
—
642
Total
$
(31)
$
642
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
681
$
—
Foreign
currency
exchange
contracts
—
113
Total
$
681
$
113
*
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.
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
58
International
Developed
Markets
Fund
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
1,849
$
—
$
1,849
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
538
—
538
Total
Financial
and
Derivative
Assets
2,387
—
2,387
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(8)
—
(8)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
2,379
$
—
$
2,379
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
Montreal
$
104
$
23
$
—
$
81
Bank
of
New
York
105
25
—
80
Citigroup
1,849
—
—
1,849
Commonwealth
Bank
of
Australia
102
25
—
77
Royal
Bank
of
Canada
96
25
—
71
State
Street
123
123
—
—
Total
$
2,379
$
221
$
—
$
2,158
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
59
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
295
$
—
$
295
Total
Financial
and
Derivative
Liabilities
295
—
295
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(17)
—
(17)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
278
$
—
$
278
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
Montreal
$
23
$
23
$
—
$
—
Bank
of
New
York
25
25
—
—
Commonwealth
Bank
of
Australia
25
25
—
—
Royal
Bank
of
Canada
25
25
—
—
Standard
Chartered
4
—
—
4
State
Street
176
123
—
53
Total
$
278
$
221
$
—
$
57
*
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.
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
60
International
Developed
Markets
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
394,224
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
392,524
Foreign
currency
holdings(^)
.........................................................................................................................................................
1,561
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
538
Receivables:
Dividends
and
interest
.......................................................................................................................................................
1,026
Dividends
from
affiliated
funds
..........................................................................................................................................
19
Investments
sold
................................................................................................................................................................
44,519
Fund
shares
sold
................................................................................................................................................................
6
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
765
From
broker(a)
...................................................................................................................................................................
5,465
Variation
margin
on
futures
contracts
.................................................................................................................................
355
Prepaid
expenses
...........................................................................................................................................................................
2
Total
assets
.................................................................................................................................................
446,780
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
50,728
Fund
shares
redeemed
.......................................................................................................................................................
194
Accrued
fees
to
affiliates
....................................................................................................................................................
303
Other
accrued
expenses
.....................................................................................................................................................
150
Variation
margin
on
futures
contracts
.................................................................................................................................
848
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
295
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
1,854
Total
liabilities
.............................................................................................................................................
54,372
Net
Assets
............................................................................................................................................................
$
392,408
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
61
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
(7,95
6
)
Shares
of
beneficial
interest
...........................................................................................................................................................
350
Additional
paid-in
capital
..............................................................................................................................................................
400,01
4
Net
Assets
............................................................................................................................................................
$
392,408
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
11.20
Net
assets
...............................................................................................................................................................................
$
392,408,418
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
35,024,385
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
1,562
(*)
Securities
on
loan
included
in
investments
$
1,849
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
14,140
(a)
Receivable
from
Broker
for
Futures
$
5,465
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
62
International
Developed
Markets
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
8,397
Dividends
from
affiliated
funds
.........................................................................................................................................
164
Securities
lending
income
(net)
.........................................................................................................................................
38
Less
foreign
taxes
withheld
...............................................................................................................................................
(820)
Total
investment
income
...............................................................................................................................................................
7,779
Expenses
Advisory
fees
....................................................................................................................................................................
1,711
Administrative
fees
...........................................................................................................................................................
95
Custodian
fees
...................................................................................................................................................................
144
Transfer
agent
fees
............................................................................................................................................................
8
Professional
fees
...............................................................................................................................................................
47
Trustees’
fees
....................................................................................................................................................................
7
Printing
fees
......................................................................................................................................................................
29
Miscellaneous
...................................................................................................................................................................
8
Total
expenses
...............................................................................................................................................................................
2,049
Net
investment
income
(loss)
........................................................................................................................................................
5,730
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
.......................................................................................................................................................................
(2,29
8
)
Investments
in
affiliated
funds
..........................................................................................................................................
5
Futures
contracts
..............................................................................................................................................................
(31)
Foreign
currency
exchange
contracts
................................................................................................................................
642
Foreign
currency-related
transactions
...............................................................................................................................
20
Net
realized
gain
(loss)
..................................................................................................................................................................
(1,66
2
)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
.......................................................................................................................................................................
37,14
6
Investments
in
affiliated
funds
..........................................................................................................................................
2
Futures
contracts
..............................................................................................................................................................
681
Foreign
currency
exchange
contracts
................................................................................................................................
113
Foreign
currency-related
transactions
...............................................................................................................................
(
6
)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
37,93
6
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
36,27
4
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
42,00
4
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
63
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
5,730
$
7,249
Net
realized
gain
(loss)
......................................................................................................................
(1,662)
13,567
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
37,936
(83,059)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
42,004
(62,243)
Distributions
To
shareholders
.................................................................................................................................
(699)
(39,021)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(699)
(39,021)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(6,493)
22,550
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
34,812
(78,714)
Net
Assets
Beginning
of
period
.................................................................................................................................
357,596
436,310
End
of
period
..........................................................................................................................................
$
392,408
$
357,596
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
931
$
10,088
1,229
$
15,125
Proceeds
from
reinvestment
of
distributions
64
699
3,619
39,021
Payments
for
shares
redeemed
(1,581)
(17,280)
(2,481)
(31,596)
Total
increase
(decrease)
(586)
$
(6,493)
2,367
$
22,550
Russell
Investment
Funds
International
Developed
Markets
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
64
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2019(1)
10.04
.16
1.02
1.18
(.02)
—
December
31,
2018
13.12
.22
(2.11)
(1.89)
(.22)
(.97)
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)
—
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
65
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d
)
(.02)
11.20
11.86
392,408
1.08
1.08
3.01
44
(1.19)
10.04
(14.87)
357,596
1.08
1.08
1.76
65
(.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
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
66
International
Developed
Markets
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019,
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:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
285,312
Administration
fees
15,851
Transfer
agent
fees
1,395
Trustee
fees
8
$
302,566
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
U.S.
Cash
Management
Fund
$
18,677
$
45,459
$
51,857
$
5
$
2
$
12,286
$
164
$
—
U.S.
Cash
Collateral
Fund
1,256
36,578
35,980
—
—
1,854
32
—
$
19,933
$
82,037
$
87,837
$
5
$
2
$
14,140
$
196
$
—
Cost
of
Investments
$
397,793,736
Unrealized
Appreciation
$
77,901,032
Unrealized
Depreciation
(83,425,937)
Net
Unrealized
Appreciation
(Depreciation)
$
(5,524,905)
Russell
Investment
Funds
Strategic
Bond
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
Strategic
Bond
Fund
67
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2019
$
1,064
.40
$
1,021
.47
Expenses
Paid
During
Period*
$
3
.43
$
3
.36
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.67%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
68
Strategic
Bond
Fund
.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Long-Term
Investments
-
87.5%
Asset-Backed
Securities
-
4.8%
ACE
Securities
Corp.
Home
Equity
Loan
Trust
Series
2005-HE3
Class
M2
3.181%
due
05/25/35
(Ê)
300
300
ACE
Securities
Corp.
Mortgage
Loan
Trust
Series
2007-D1
Class
A2
6.336%
due
02/25/38
(~)(Ê)(Þ)
561
534
Ameriquest
Mortgage
Securities,
Inc.
Asset-Backed
Pass-Through
Certificates
Series
2005-R1
Class
M4
3.596%
due
03/25/35
(Ê)
830
838
Applebee's
Funding
LLC
/
IHOP
Funding
LLC
Series
2019-1A
Class
A2I
4.194%
due
06/07/49
(Þ)
340
344
Avis
Budget
Rental
Car
Funding LLC
Series
2019-2A
Class
A
3.350%
due
09/22/25
(Þ)
600
618
Bank
of
America
Credit
Carrd
Trust
Series
2017-A2
Class
A2
1.840%
due
01/17/23
1,474
1,470
BCAP
LLC
Trust
Series
2014-RR3
Class
3A2
2.629%
due
07/26/36
(~)(Ê)(Þ)
1,040
997
Series
2014-RR3
Class
5A2
2.639%
due
10/26/36
(~)(Ê)(Þ)
655
628
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
Series
2016-1A
Class
AA
2.487%
due
12/16/41
(~)(Ê)(Þ)
892
885
BNC
Mortgage
Loan
Trust
Series
2007-1
Class
A4
2.646%
due
03/25/37
(Ê)
915
874
CAL
Funding
III,
Ltd.
Series
2017-1A
Class
A
3.620%
due
06/25/42
(Þ)
633
647
Capital
Auto
Receivables
Asset
Trust
Series
2015-2
Class
D
3.160%
due
11/20/20
983
983
Series
2018-1
Class
A2A
2.540%
due
10/20/20
(Þ)
15
15
Citigroup
Mortgage
Loan
Trust,
Inc.
Series
2007-WFH2
Class
M2
2.936%
due
03/25/37
(Ê)
1,490
1,463
Conseco
Financial
Corp.
Series
1998-2
Class
M1
6.940%
due
12/01/28
(~)(Ê)
1,396
1,353
Countrywide
Asset-Backed
Certificates
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2005-5
Class
M4
3.286%
due
10/25/35
(Ê)
353
354
Series
2007-4
Class
A4W
4.683%
due
04/25/47
1,577
1,652
Dividend
Solar
Loans
LLC
Series
2019-1
Class
A
3.670%
due
08/22/39
(Þ)
390
390
Fieldstone
Mortgage
Investment
Trust
Series
2004-4
Class
M3
2.438%
due
10/25/35
(Ê)
411
414
Greenpoint
Manufactured
Housing
Contract
Trust
Series
2000-4
Class
A3
4.487%
due
08/21/31
(Ê)
900
897
Hertz
Vehicle
Financing
II,
LP
Series
2016-4A
Class
A
2.650%
due
07/25/22
(Þ)
785
785
Series
2019-1A
Class
A
3.710%
due
03/25/23
(Þ)
935
959
Home
Equity
Asset
Trust
Series
2005-9
Class
M1
2.887%
due
04/25/36
(Ê)
380
378
Series
2006-4
Class
2A4
2.496%
due
08/25/36
(Ê)
628
626
Series
2006-6
Class
2A3
0.596%
due
11/25/36
(Ê)
592
555
Horizon
Aircraft
Finance
I,
Ltd.
Series
2018-1
Class
A
4.458%
due
12/15/38
(Þ)
878
909
HSI
Asset
Securitization
Corp.
Trust
Series
2007-OPT1
Class
1A
2.626%
due
12/25/36
(Ê)
261
220
Legacy
Mortgage
Asset
Trust
Series
2019-GS4
Class
A1
3.438%
due
05/25/59
(~)(Ê)(Þ)
467
471
Long
Beach
Mortgage
Loan
Trust
Series
2004-1
Class
M1
3.236%
due
02/25/34
(Ê)
358
357
Series
2004-4
Class
M1
3.386%
due
10/25/34
(Ê)
720
723
Mastr
Asset
Backed
Securities
Trust
Series
2005-WMC1
Class
M4
3.161%
due
03/25/35
(Ê)
525
526
Merrill
Lynch
Mortgage
Investors
Trust
Series
2006-FF1
Class
M4
2.847%
due
08/25/36
(Ê)
790
787
Navient
Student
Loan
Trust
Series
2015-1
Class
A2
3.004%
due
04/25/40
(Ê)
184
182
Nelnet
Student
Loan
Trust
Series
2008-3
Class
A4
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
69
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.301%
due
11/25/24
(Ê)
293
293
New
Century
Home
Equity
Loan
Trust
Series
2005-B
Class
M1
2.910%
due
10/25/35
(Ê)
690
671
Option
One
Mortgage
Loan
Trust
Series
2004-3
Class
M1
1.314%
due
11/25/34
(Ê)
559
559
Series
2007-FXD1
Class
3A4
5.860%
due
01/25/37
(~)(Ê)
902
905
Park
Place
Securities,
Inc.
Asset-Backed
Pass-Through
Certificates
Series
2005-WHQ1
Class
M5
3.555%
due
03/25/35
(Ê)
1,290
1,291
Popular
ABS
Mortgage
Pass-Through
Trust
Series
2006-C
Class
A4
2.736%
due
07/25/36
(Ê)
541
538
Series
2006-D
Class
A3
2.746%
due
11/25/46
(Ê)
1,406
1,388
RAMP
Trust
Series
2006-RZ1
Class
M4
3.055%
due
03/25/36
(Ê)
960
934
Renaissance
Home
Equity
Loan
Trust
Series
2006-1
Class
AF6
5.746%
due
05/25/36
(~)(Ê)
97
65
Santander
Drive
Auto
Receivables
Trust
Series
2015-2
Class
D
3.020%
due
04/15/21
644
644
SBA
Small
Business
Investment
Cos.
Series
2017-10A
Class
1
2.845%
due
03/10/27
214
217
Series
2019-10A
Class
1
3.113%
due
03/10/29
200
208
SLM
Private
Credit
Student
Loan
Trust
Series
2005-B
Class
A4
2.941%
due
06/15/39
(Ê)
214
210
Series
2006-A
Class
A5
2.901%
due
06/15/39
(Ê)
215
209
SMB
Private
Education
Loan
Trust
Series
2019-B
Class
A2B
0.000%
due
06/15/37
(Ê)(Þ)(ž)
190
190
SoFi
Professional
Loan
Program
LLC
Series
2017-E
Class
A2A
1.860%
due
11/26/40
(Þ)
222
221
Series
2017-F
Class
A2FX
2.840%
due
01/25/41
(Þ)
1,474
1,489
Series
2018-A
Class
A2A
2.390%
due
02/25/42
(Þ)
207
208
Series
2018-A
Class
A2B
2.950%
due
02/25/42
(Þ)
1,474
1,498
Series
2018-B
Class
A1FX
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.640%
due
08/25/47
(Þ)
565
567
Structured
Asset
Investment
Loan
Trust
Series
2005-HE3
Class
M1
2.936%
due
09/25/35
(Ê)
642
646
Textainer
Marine
Containers,
Ltd.
Series
2017-1A
Class
A
3.720%
due
05/20/42
(Þ)
804
815
Towd
Point
Mortgage
Trust
Series
2016-3
Class
A1
2.250%
due
08/25/55
(~)(Ê)(Þ)
247
245
Series
2017-1
Class
A1
2.750%
due
10/25/56
(~)(Ê)(Þ)
1,065
1,069
Series
2017-2
Class
A1
2.750%
due
04/25/57
(~)(Ê)(Þ)
486
486
Series
2017-3
Class
A1
2.750%
due
07/25/57
(~)(Ê)(Þ)
511
512
Series
2017-4
Class
A1
2.750%
due
06/25/57
(~)(Ê)(Þ)
643
646
Triton
Container
Finance
IV
LLC
Series
2017-2A
Class
A
3.620%
due
08/20/42
(Þ)
545
552
Triton
Container
Finance
V
LLC
Series
2018-1A
Class
A
3.950%
due
03/20/43
(Þ)
217
222
Triton
Container
Finance
VI
LLC
Series
2017-1A
Class
A
3.520%
due
06/20/42
(Þ)
608
618
U.S.
Small
Business
Administration
Participation
Certificates
Series
2019-20D
Class
1
2.980%
due
04/01/39
70
72
VOLT
LXII
LLC
Series
2017-NPL9
Class
A1
3.125%
due
09/25/47
(~)(Ê)(Þ)
2,326
2,333
43,655
Corporate
Bonds
and
Notes
-
17.9%
3M
Co.
2.750%
due
03/01/22
305
310
Abbott
Laboratories
2.900%
due
11/30/21
224
228
3.750%
due
11/30/26
51
55
4.750%
due
11/30/36
60
71
4.900%
due
11/30/46
80
99
AbbVie,
Inc.
2.300%
due
05/14/21
220
219
3.750%
due
11/14/23
325
339
3.600%
due
05/14/25
60
62
Aetna,
Inc.
2.800%
due
06/15/23
30
30
Ally
Financial,
Inc.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
70
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
8.000%
due
11/01/31
100
132
Altria
Group,
Inc.
4.000%
due
10/26/21
223
234
3.490%
due
02/14/22
40
41
2.850%
due
08/09/22
170
172
3.800%
due
02/14/24
(Ê)
150
156
4.400%
due
02/14/26
405
433
4.800%
due
02/14/29
340
366
12.360%
due
02/06/39
482
745
5.800%
due
02/14/39
100
112
5.950%
due
02/14/49
100
114
6.200%
due
02/14/59
20
23
Amazon.com,
Inc.
7.980%
due
02/16/23
266
268
4.950%
due
12/05/44
60
75
Series
WI
5.200%
due
12/03/25
185
216
3.150%
due
08/22/27
220
231
3.875%
due
08/22/37
50
55
4.050%
due
08/22/47
70
79
American
Airlines
Pass-Through
Trust
Series
2011-1
Class
A
5.250%
due
01/31/21
143
147
Series
2013-2
Class
A
4.950%
due
01/15/23
317
332
American
Axle
&
Manufacturing,
Inc.
6.625%
due
10/15/22
41
42
American
Express
Co.
2.200%
due
10/30/20
835
834
3.375%
due
05/17/21
261
266
Series
FIX
3.700%
due
08/03/23
475
498
American
Express
Credit
Corp.
Series
F
2.600%
due
09/14/20
765
768
American
International
Group,
Inc.
6.400%
due
12/15/20
725
765
3.750%
due
07/10/25
110
115
American
Tower
Corp.
2.250%
due
01/15/22
230
229
3.800%
due
08/15/29
300
309
American
Tower
Trust
#1
Series
2013-13
Class
2A
3.070%
due
03/15/23
(Þ)
270
274
Amgen,
Inc.
2.650%
due
05/11/22
274
276
3.625%
due
05/22/24
10
11
6.400%
due
02/01/39
195
253
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.400%
due
05/01/45
100
106
Anadarko
Petroleum
Corp.
4.850%
due
03/15/21
80
83
5.550%
due
03/15/26
230
258
6.450%
due
09/15/36
277
340
6.600%
due
03/15/46
90
117
Series
9
4.500%
due
11/21/25
(Ê)
125
128
Andeavor
LLC
Series
WI
5.125%
due
12/15/26
225
245
Anheuser-Busch
InBev
Finance,
Inc.
2.650%
due
02/01/21
306
307
3.300%
due
02/01/23
180
186
Anheuser-Busch
InBev
Worldwide,
Inc.
4.150%
due
01/23/25
450
487
3.650%
due
02/01/26
470
494
4.000%
due
04/13/28
20
22
4.750%
due
01/23/29
410
464
5.875%
due
06/15/35
207
247
4.375%
due
04/15/38
480
508
4.900%
due
02/01/46
70
78
5.550%
due
01/23/49
265
323
5.800%
due
01/23/59
495
620
Antero
Resources
Corp.
5.375%
due
11/01/21
40
40
Anthem,
Inc.
5.800%
due
04/10/17
30
31
2.950%
due
12/01/22
80
81
3.350%
due
12/01/24
30
31
3.650%
due
12/01/27
110
114
Aon
Corp.
2.980%
due
05/27/21
172
208
Apache
Corp.
3.250%
due
04/15/22
16
16
4.375%
due
10/15/28
20
21
5.100%
due
09/01/40
140
142
4.250%
due
01/15/44
20
18
Apollo
Management
Holdings,
LP
4.000%
due
05/30/24
(Þ)
165
171
4.400%
due
05/27/26
(Þ)
245
257
5.000%
due
03/15/48
(Þ)
305
320
Apple,
Inc.
2.000%
due
11/13/20
80
80
2.400%
due
05/03/23
247
249
2.450%
due
08/04/26
110
110
4.650%
due
02/23/46
100
118
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
71
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Aqua
America,
Inc.
4.276%
due
06/13/23
225
242
3.566%
due
05/01/29
155
161
Ares
Capital
Corp.
3.500%
due
02/10/23
261
260
Associated
Bank
NA
Series
BKNT
3.500%
due
08/13/21
365
372
AT&T
Mobility
LLC
Series
QIB
7.375%
due
12/17/25
204
258
AT&T,
Inc.
3.000%
due
02/15/22
40
41
3.800%
due
03/01/24
260
273
3.875%
due
01/15/26
229
239
3.800%
due
02/15/27
80
83
4.250%
due
03/01/27
385
412
6.800%
due
05/15/36
275
326
5.250%
due
03/01/37
190
213
4.850%
due
03/01/39
240
257
4.350%
due
06/15/45
100
100
Series
WI
4.300%
due
02/15/30
654
698
8.750%
due
11/15/31
350
477
Athene
Global
Funding
3.000%
due
07/01/22
(Þ)
225
228
Athene
Holding,
Ltd.
4.125%
due
01/12/28
630
635
AutoNation,
Inc.
3.800%
due
11/15/27
370
363
Avnet,
Inc.
4.875%
due
12/01/22
410
435
B.A.T.
Capital
Corp.
Series
WI
2.297%
due
08/14/20
245
244
3.557%
due
08/15/27
445
443
4.540%
due
08/15/47
160
148
BAC
Capital
Trust
XIV
Series
G
4.000%
due
09/29/49
(Ê)(ƒ)
70
58
Ball
Corp.
5.250%
due
07/01/25
110
119
Bank
of
America
Corp.
2.625%
due
10/19/20
217
218
2.328%
due
10/01/21
(Ê)
225
225
3.550%
due
03/05/24
(Ê)
130
135
4.000%
due
01/22/25
155
163
3.366%
due
01/23/26
(Ê)
325
335
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.250%
due
10/22/26
320
342
3.559%
due
04/23/27
(Ê)
785
818
4.271%
due
07/23/29
(Ê)
200
218
3.974%
due
02/07/30
(Ê)
200
214
6.110%
due
01/29/37
330
421
4.330%
due
03/15/50
(Ê)
90
100
Series
AA
6.100%
due
12/31/49
(Ê)(ƒ)
50
54
Series
FF
5.875%
due
12/31/99
(Ê)
275
287
Series
GMTN
0.625%
due
01/11/23
460
474
4.450%
due
03/03/26
30
32
3.500%
due
04/19/26
1,235
1,293
3.593%
due
07/21/28
(Ê)
260
271
Series
WI
3.004%
due
12/20/23
(Ê)
42
43
3.419%
due
12/20/28
(Ê)
482
496
Bank
of
New
York
Mellon
Corp.
(The)
2.600%
due
08/17/20
222
223
Bank
One
Corp.
8.750%
due
09/01/30
280
400
BankUnited,
Inc.
4.875%
due
11/17/25
219
237
Barrick
NA
Finance
LLC
5.700%
due
05/30/41
130
155
Bausch
Health
Cos.,
Inc.
9.000%
due
12/15/25
(Þ)
50
56
Bayer
US
Finance
II
LLC
3.500%
due
06/25/21
(Þ)
624
632
4.700%
due
07/15/64
(Þ)
370
336
Bayer
US
Finance
LLC
10.000%
due
10/08/24
(Þ)
643
646
BB&T
Corp.
2.050%
due
05/10/21
269
268
3.875%
due
03/19/29
605
647
Beacon
Escrow
Corp.
4.875%
due
11/01/25
(Þ)
20
20
Becton
Dickinson
and
Co.
3.363%
due
06/06/24
180
186
3.734%
due
12/15/24
242
254
4.685%
due
12/15/44
8
9
Berkshire
Hathaway
Energy
Co.
Series
WI
2.800%
due
01/15/23
245
250
Berkshire
Hathaway
Finance
Corp.
4.200%
due
08/15/48
255
285
4.250%
due
01/15/49
130
146
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
72
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Berkshire
Hathaway,
Inc.
3.125%
due
03/15/26
217
225
BGC
Partners,
Inc.
Series
WI
5.375%
due
07/24/23
175
183
Blue
Cube
Spinco,
Inc.
Series
WI
10.000%
due
10/15/25
165
187
Blue
Racer
Midstream
LLC
/
Blue
Racer
Finance
Corp.
6.125%
due
11/15/22
(Þ)
30
30
BMW
US
Capital
LLC
3.250%
due
08/14/20
(Þ)
266
268
1.850%
due
09/15/21
(Þ)
20
20
Boeing
Co.
(The)
2.125%
due
03/01/22
272
271
3.100%
due
05/01/26
20
21
2.800%
due
03/01/27
30
30
3.200%
due
03/01/29
120
124
BP
Capital
Markets
America,
Inc.
3.245%
due
05/06/22
(Ê)
10
10
2.520%
due
09/19/22
250
252
3.216%
due
11/28/23
380
391
3.410%
due
02/11/26
200
209
3.119%
due
05/04/26
120
122
Brighthouse
Financial,
Inc.
Series
WI
4.700%
due
06/22/47
50
42
Bristol-Myers
Squibb
2.600%
due
05/16/22
(Þ)
90
91
2.900%
due
07/26/24
(Þ)
530
541
3.200%
due
06/15/26
(Þ)
190
197
3.400%
due
07/26/29
(Þ)
455
476
Brixmor
Operating
Partnership,
LP
4.125%
due
05/15/29
200
209
Broadcom
Corp.
/
Broadcom
Cayman
Finance,
Ltd.
Series
WI
3.125%
due
01/15/25
70
68
3.875%
due
01/15/27
262
257
Broadcom,
Inc.
3.125%
due
04/15/21
(Þ)
365
367
4.250%
due
04/15/26
(Þ)
385
390
4.750%
due
04/15/29
(Þ)
250
256
Brown
&
Brown,
Inc.
4.200%
due
09/15/24
261
276
Bunge,
Ltd.
Finance
Corp.
4.350%
due
03/15/24
220
229
Burlington
Northern
Santa
Fe
LLC
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.489%
due
09/01/24
(Ê)
220
232
4.150%
due
04/01/45
100
112
Camden
Property
Trust
4.100%
due
10/15/28
155
169
Campbell
Soup
Co.
3.040%
due
03/15/21
(Ê)
110
110
Cantor
Fitzgerald,
LP
4.875%
due
05/01/24
(Þ)
360
371
Capital
One
Bank
USA
NA
3.375%
due
02/15/23
250
255
Cardinal
Health,
Inc.
2.616%
due
06/15/22
50
50
3.079%
due
06/15/24
60
60
Caterpillar
Financial
Services
Corp.
Series
GMTN
1.850%
due
09/04/20
225
224
CBS
Corp.
3.700%
due
08/15/24
205
212
1.600%
due
07/30/30
105
143
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp.
3.849%
due
04/15/23
(Ê)
242
253
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
5.125%
due
05/01/23
(Þ)
50
51
5.375%
due
05/01/25
(Þ)
110
114
5.125%
due
05/01/27
(Þ)
20
21
Celanese
US
Holdings
LLC
5.875%
due
06/15/21
105
111
3.500%
due
05/08/24
160
164
Celgene
Corp.
2.250%
due
08/15/21
70
70
3.550%
due
08/15/22
30
31
3.875%
due
08/15/25
200
214
3.900%
due
02/20/28
380
407
5.000%
due
08/15/45
80
95
Centene
Corp.
4.750%
due
05/15/22
50
51
5.375%
due
06/01/26
(Þ)
20
21
Series
WI
5.625%
due
02/15/21
30
31
6.125%
due
02/15/24
50
52
CenterPoint
Energy,
Inc.
3.600%
due
11/01/21
175
180
CF
Industries,
Inc.
5.375%
due
03/15/44
465
436
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
73
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.050%
due
03/30/29
(Ê)
260
286
5.375%
due
04/01/38
80
86
5.750%
due
04/01/48
200
221
Series
WI
3.579%
due
07/23/20
80
81
4.908%
due
07/23/25
530
575
4.200%
due
03/15/28
40
42
6.384%
due
10/23/35
315
370
6.484%
due
10/23/45
405
477
6.834%
due
10/23/55
226
268
Cheniere
Corpus
Christi
Holdings
LLC
Series
WI
5.125%
due
06/30/27
40
43
Chesapeake
Energy
Corp.
6.625%
due
08/15/20
10
10
6.125%
due
02/15/21
70
71
Chevron
Corp.
2.100%
due
05/16/21
302
302
2.954%
due
05/16/26
70
72
Chubb
INA
Holdings,
Inc.
2.300%
due
11/03/20
291
291
3.350%
due
05/03/26
30
31
Cigna
Corp.
3.200%
due
09/17/20
(Þ)
1,950
1,969
3.400%
due
09/17/21
(Þ)
60
61
3.750%
due
07/15/23
(Þ)
150
156
4.125%
due
11/15/25
(Þ)
295
313
4.375%
due
10/15/28
(Þ)
260
280
Cimarex
Energy
Co.
3.290%
due
06/01/24
10
11
3.900%
due
05/15/27
90
92
Cintas
Corp.
No.
2
2.900%
due
04/01/22
60
61
3.700%
due
04/01/27
70
75
Cisco
Systems,
Inc.
2.200%
due
02/28/21
220
220
CIT
Group,
Inc.
4.750%
due
02/16/24
50
53
5.250%
due
03/07/25
30
33
Citibank
NA
Series
BKNT
3.400%
due
07/23/21
1,015
1,036
Citigroup
Capital
III
7.625%
due
12/01/36
345
448
Citigroup,
Inc.
4.050%
due
07/30/22
170
177
4.450%
due
09/29/27
770
830
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
8.125%
due
07/15/39
550
879
5.300%
due
05/06/44
101
120
4.750%
due
05/18/46
220
249
4.650%
due
07/23/48
95
110
Class
Q
2.650%
due
10/26/20
274
275
Series
9-RG
4.650%
due
07/30/45
147
170
Series
P
5.950%
due
12/31/49
(Ê)
280
293
Citizens
Bank
NA
Series
BKNT
2.250%
due
10/30/20
274
273
Citizens
Financial
Group,
Inc.
2.375%
due
07/28/21
290
290
CME
Group,
Inc.
5.300%
due
09/15/43
30
38
CNH
Industrial
Capital
LLC
3.875%
due
10/15/21
250
255
CNOOC
Finance
USA
LLC
3.500%
due
05/05/25
300
309
Coca-Cola
Co.
(The)
1.875%
due
10/27/20
268
267
Comcast
Cable
Communications
Holdings,
Inc.
8.700%
due
01/10/21
195
240
Comcast
Corp.
3.600%
due
03/05/21
240
253
3.700%
due
04/15/24
260
276
3.950%
due
10/15/25
200
216
3.150%
due
03/01/26
30
31
4.150%
due
10/15/28
350
386
4.250%
due
10/15/30
200
223
6.500%
due
11/15/35
(Ê)
90
122
8.900%
due
07/01/39
270
369
4.700%
due
10/15/48
120
141
CommScope
Technologies
LLC
5.000%
due
03/15/27
(Þ)
30
26
Concho
Resources,
Inc.
4.375%
due
01/15/25
90
94
3.750%
due
10/01/27
205
212
4.300%
due
08/15/28
90
97
Constellation
Brands,
Inc.
2.250%
due
11/06/20
300
299
4.400%
due
11/15/25
245
267
11.250%
due
08/10/26
244
268
Continental
Airlines
Pass-Through
Trust
Series
071A
Class
A
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
74
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.983%
due
04/19/22
(Ê)
73
78
Continental
Resources,
Inc.
5.000%
due
09/15/22
120
121
2.031%
due
04/15/23
90
95
0.859%
due
06/01/24
(Ê)
80
82
Series
WI
4.375%
due
01/15/28
20
21
Costco
Wholesale
Corp.
2.150%
due
05/18/21
244
244
Cott
Holdings,
Inc.
5.500%
due
04/01/25
(Þ)
60
61
Cox
Communications,
Inc.
3.250%
due
12/15/22
(Þ)
290
296
6.450%
due
12/01/36
(Þ)
435
509
Crown
Castle
International
Corp.
5.250%
due
01/15/23
203
221
CubeSmart,
LP
4.375%
due
02/15/29
220
235
CVS
Health
Corp.
3.350%
due
03/09/21
200
203
2.750%
due
12/01/22
90
90
3.700%
due
03/09/23
795
820
4.100%
due
03/25/25
365
384
4.300%
due
03/25/28
590
622
4.780%
due
03/25/38
70
73
5.125%
due
07/20/45
140
149
5.050%
due
03/25/48
265
282
Daimler
Finance
NA
LLC
3.350%
due
05/04/21
(Þ)
1,285
1,303
Delhaize
America,
Inc.
9.000%
due
04/15/31
154
222
Dell
International
LLC
/
EMC
Corp.
4.420%
due
06/15/21
(Þ)
280
288
7.125%
due
06/15/24
(Þ)
100
106
8.350%
due
07/15/46
(Þ)
285
360
Delta
Air
Lines
Pass-Through
Trust
Series
071A
Class
A
4.750%
due
06/04/21
354
390
Delta
Air
Lines,
Inc.
3.625%
due
03/15/22
223
227
Deutsche
Bank
AG
2.950%
due
08/20/20
242
240
Devon
Energy
Corp.
5.850%
due
12/15/25
440
524
5.000%
due
06/15/45
180
206
Devon
Financing
Co.
LLC
7.875%
due
09/30/31
150
207
Diageo
Investment
Corp.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.875%
due
05/11/22
90
92
Diamond
1
Finance
Corp.
/
Diamond
2
Finance
Corp
8.100%
due
07/15/36
(Þ)
155
190
Diamondback
Energy,
Inc.
Series
WI
5.375%
due
05/31/25
30
32
Discover
Bank
Series
BKNT
4.650%
due
09/13/28
345
377
Discovery
Communications
LLC
5.300%
due
05/15/49
165
177
DISH
DBS
Corp.
Series
WI
5.875%
due
11/15/24
120
114
7.750%
due
07/01/26
30
29
Dominion
Energy,
Inc.
3.071%
due
08/15/24
(~)(Ê)
275
277
Dominion
Resources,
Inc.
7.000%
due
06/15/38
20
27
Domtar
Corp.
6.750%
due
02/15/44
178
195
Dow
Chemical
Co.
(The)
8.140%
due
06/30/24
238
247
DowDuPont,
Inc.
4.205%
due
11/15/23
217
232
5.319%
due
11/15/38
175
205
Duke
Energy
Carolinas
LLC
10.000%
due
02/15/40
(Ê)
30
37
4.000%
due
09/30/42
100
107
Duke
Energy
Corp.
4.700%
due
04/15/24
211
223
Duke
Energy
Progress
LLC
1.150%
due
09/15/21
(Ê)
265
269
Eaton
Corp.
2.750%
due
11/02/22
150
152
4.150%
due
11/02/42
40
42
Eli
Lilly
&
Co.
3.100%
due
05/15/27
20
21
EMD
Finance
LLC
3.250%
due
03/19/25
(Þ)
272
278
Energy
Transfer
Operating,
LP
5.875%
due
01/15/24
246
273
4.500%
due
04/15/24
265
282
4.050%
due
03/15/25
355
370
5.250%
due
04/15/29
40
45
6.250%
due
04/15/49
10
12
Series
10Y
4.950%
due
06/15/28
20
22
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
75
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
EnLink
Midstream
Partners,
LP
5.050%
due
04/01/45
315
263
Enterprise
Products
Operating
LLC
3.500%
due
02/01/22
230
236
4.150%
due
10/16/28
160
174
4.200%
due
01/31/50
285
293
EOG
Resources,
Inc.
4.150%
due
01/15/26
30
33
EQM
Midstream
Partners,
LP
Series
10Y
5.500%
due
07/15/28
125
132
EQT
Midstream
Partners
LP
Series
5Y
4.750%
due
07/15/23
260
269
Equifax,
Inc.
Series
5Y
3.950%
due
06/15/23
685
714
ERP
Operating,
LP
4.150%
due
12/01/28
175
193
Evergy,
Inc.
5.292%
due
06/15/22
(~)(Ê)
670
716
Exelon
Corp.
3.497%
due
06/01/22
245
251
Exxon
Mobil
Corp.
2.726%
due
03/01/23
266
272
3.043%
due
03/01/26
60
62
4.114%
due
03/01/46
40
46
Farmers
Exchange
Capital
III
5.454%
due
10/15/54
(Ê)(Þ)
220
238
FedEx
Corp.
4.500%
due
02/01/65
226
207
Fifth
Third
Bancorp
3.650%
due
01/25/24
415
437
Fifth
Third
Bank
Series
BKNT
2.200%
due
10/30/20
267
267
First
Data
Corp.
5.375%
due
08/15/23
(Þ)
140
143
FirstEnergy
Corp.
Series
B
4.250%
due
10/28/22
(Ê)
100
105
3.900%
due
07/15/27
370
388
Series
C
7.375%
due
11/15/31
350
479
Fiserv,
Inc.
2.750%
due
07/01/24
340
342
3.500%
due
07/01/29
275
282
4.400%
due
07/01/49
140
147
Ford
Motor
Co.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
7.400%
due
11/01/46
230
259
Ford
Motor
Credit
Co.
LLC
5.875%
due
08/02/21
200
211
3.096%
due
05/04/23
272
268
Series
FXD
3.813%
due
10/12/21
625
633
Fox
Corp.
4.030%
due
01/25/24
(Þ)
60
64
4.709%
due
01/25/29
(Þ)
110
123
5.476%
due
01/25/39
(Þ)
110
130
Freeport-McMoRan,
Inc.
4.000%
due
11/14/21
10
10
3.550%
due
03/01/22
10
10
6.875%
due
02/15/23
10
11
4.550%
due
11/14/24
10
10
5.450%
due
10/23/45
463
424
Fresenius
Medical
Care
US
Finance
II,
Inc.
4.750%
due
10/15/24
(Þ)
110
117
General
Dynamics
Corp.
3.000%
due
05/11/21
262
266
General
Electric
Co.
5.300%
due
02/11/21
130
135
4.500%
due
03/11/44
190
185
Series
GMTN
6.875%
due
01/10/39
411
517
Series
MTNA
6.750%
due
03/15/32
275
339
General
Motors
Co.
4.875%
due
10/02/23
450
477
6.250%
due
10/02/43
110
117
General
Motors
Financial
Co.,
Inc.
2.450%
due
11/06/20
30
30
5.510%
due
09/25/21
20
21
4.200%
due
11/06/21
855
880
3.450%
due
04/10/22
215
218
4.250%
due
05/15/23
10
10
5.100%
due
01/17/24
690
738
Gilead
Sciences,
Inc.
2.550%
due
09/01/20
210
210
3.650%
due
03/01/26
90
95
4.750%
due
03/01/46
100
113
GlaxoSmithKline
Capital,
Inc.
2.800%
due
03/18/23
267
272
Glencore
Funding
LLC
4.125%
due
03/12/24
(Þ)
330
342
4.625%
due
04/29/24
(Þ)
40
42
4.000%
due
03/27/27
(Þ)
250
252
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
76
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.875%
due
10/27/27
(Þ)
60
60
GLP
Capital,
LP
/
GLP
Financing
II,
Inc.
5.375%
due
11/01/23
80
86
5.375%
due
04/15/26
225
243
Goldman
Sachs
Capital
II
Series
_
3.750%
due
12/20/20
(Ê)
3
2
Goldman
Sachs
Group,
Inc.
(The)
2.600%
due
12/27/20
271
271
5.250%
due
07/27/21
380
401
3.200%
due
02/23/23
70
72
10.000%
due
07/08/24
150
157
3.272%
due
09/29/25
(Ê)
485
496
4.250%
due
10/21/25
310
329
3.500%
due
11/16/26
(Ê)
90
92
3.691%
due
06/05/28
(Ê)
200
207
3.814%
due
04/23/29
(Ê)
300
312
4.223%
due
05/01/29
(Ê)
50
54
6.450%
due
05/01/36
40
50
6.750%
due
10/01/37
440
576
4.411%
due
04/23/39
(Ê)
185
200
6.250%
due
02/01/41
160
214
5.150%
due
05/22/45
200
229
4.750%
due
10/21/45
250
287
Halliburton
Co.
3.800%
due
11/15/25
70
73
4.850%
due
11/15/35
130
139
Hanesbrands,
Inc.
4.625%
due
05/15/24
(Þ)
10
10
4.875%
due
05/15/26
(Þ)
30
31
Harman
International
Industries,
Inc.
4.150%
due
05/15/25
233
247
Harris
Corp.
4.854%
due
04/27/35
40
44
5.054%
due
04/27/45
40
47
HCA,
Inc.
5.875%
due
03/15/22
229
250
6.500%
due
03/15/24
50
54
4.500%
due
02/15/27
40
43
5.625%
due
09/01/28
100
108
4.125%
due
06/15/29
270
276
5.500%
due
06/15/47
20
21
5.250%
due
06/15/49
190
198
Hess
Corp.
6.000%
due
01/15/40
235
257
Hewlett
Packard
Enterprise
Co.
3.500%
due
10/05/21
245
251
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Hilton
Domestic
Operating
Co.,
Inc.
Series
WI
5.125%
due
05/01/26
20
21
Home
Depot,
Inc.
(The)
2.625%
due
06/01/22
243
247
Honeywell
International,
Inc.
1.850%
due
11/01/21
221
219
Host
Hotels
&
Resorts,
LP
5.250%
due
03/15/22
214
226
HSBC
Bank
NA
Series
BKNT
5.875%
due
11/01/34
475
597
HSBC
USA,
Inc.
7.200%
due
07/15/97
103
145
Humana,
Inc.
3.150%
due
12/01/22
10
10
4.950%
due
08/06/26
20
22
3.950%
due
03/15/27
100
104
4.625%
due
12/01/42
20
21
4.800%
due
03/15/47
10
11
Hyundai
Capital
America
2.750%
due
09/18/20
(Þ)
224
224
IBM
Credit
LLC
1.800%
due
01/20/21
255
253
Intel
Corp.
3.100%
due
07/29/22
261
269
3.700%
due
07/29/25
20
21
Series
WI
3.734%
due
12/08/47
10
10
Intercontinental
Exchange,
Inc.
2.750%
due
12/01/20
274
276
4.250%
due
09/21/48
155
173
International
Business
Machines
Corp.
2.250%
due
02/19/21
270
270
2.800%
due
05/13/21
610
617
3.000%
due
05/15/24
320
329
3.500%
due
05/15/29
215
225
4.150%
due
05/15/39
185
197
International
Lease
Finance
Corp.
8.625%
due
01/15/22
50
57
5.875%
due
08/15/22
410
446
International
Paper
Co.
8.700%
due
06/15/38
305
436
5.150%
due
05/15/46
188
201
Jane
Street
Group
LLC
5.402%
due
08/25/22
(~)(Ê)
90
89
Jefferies
Group
LLC
5.300%
due
09/30/24
232
252
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
77
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Johnson
&
Johnson
2.250%
due
03/03/22
269
271
3.625%
due
03/03/37
70
75
JPMorgan
Chase
&
Co.
4.250%
due
10/15/20
300
307
2.550%
due
03/01/21
540
541
3.151%
due
03/09/21
(Ê)
1,515
1,518
4.500%
due
08/15/21
130
135
4.500%
due
01/24/22
275
290
1.310%
due
09/10/24
150
158
4.023%
due
12/05/24
(~)(Ê)
220
234
4.125%
due
12/15/26
230
246
4.250%
due
10/01/27
30
32
4.203%
due
07/23/29
(Ê)
200
219
4.452%
due
12/05/29
(Ê)
475
528
6.400%
due
05/15/38
100
138
4.950%
due
06/01/45
100
119
Kerr-McGee
Corp.
6.950%
due
07/01/24
10
12
7.875%
due
09/15/31
30
41
Keurig
Dr
Pepper,
Inc.
Series
WI
4.057%
due
05/25/23
487
511
KeyBank
NA
Series
BKNT
3.300%
due
02/01/22
250
257
Kinder
Morgan
Energy
Partners,
LP
3.500%
due
03/01/21
30
30
Kinder
Morgan,
Inc.
4.300%
due
03/01/28
180
193
5.550%
due
06/01/45
135
156
Series
GMTN
7.800%
due
08/01/31
176
237
KKR
Group
Finance
Co.
II
LLC
0.250%
due
02/01/43
(Þ)
10
12
KKR
Group
Finance
Co.
III
LLC
5.125%
due
06/01/44
(Þ)
175
194
Kohl's
Corp.
5.550%
due
07/17/45
520
520
Kraft
Heinz
Foods
Co.
4.000%
due
06/15/23
10
10
4.875%
due
02/15/25
(Þ)
565
582
7.000%
due
01/26/39
160
193
Series
WI
3.500%
due
07/15/22
30
31
3.000%
due
06/01/26
60
58
5.000%
due
07/15/35
240
252
Kroger
Co.
(The)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.600%
due
02/01/21
225
225
Lamb
Weston
Holdings,
Inc.
4.875%
due
11/01/26
(Þ)
60
62
Land
O'
Lakes,
Inc.
6.000%
due
11/15/22
(Þ)
320
335
Lennar
Corp.
4.500%
due
04/30/24
40
42
Series
WI
5.000%
due
06/15/27
10
11
4.750%
due
11/29/27
100
105
Leucadia
National
Corp.
5.500%
due
10/18/23
209
225
Life
Technologies
Corp.
5.000%
due
01/15/21
385
397
Lockheed
Martin
Corp.
2.500%
due
11/23/20
274
275
Class
Preference
4.500%
due
05/15/36
10
11
Series
10YR
3.550%
due
01/15/26
90
96
Lowe's
Cos.,
Inc.
1.820%
due
01/11/23
240
247
Series
10YR
3.650%
due
04/05/29
265
277
Manufacturers
&
Traders
Trust
Co.
Series
BKNT
2.050%
due
08/17/20
224
224
Marathon
Petroleum
Corp.
5.000%
due
09/15/54
234
240
Mars,
Inc.
2.700%
due
04/01/25
(Þ)
60
61
3.200%
due
04/01/30
(Þ)
205
213
Marvell
Technology
Group,
Ltd.
4.200%
due
06/22/23
290
302
Masco
Corp.
4.450%
due
04/01/25
238
253
MassMutual
Global
Funding
II
1.950%
due
09/22/20
(Þ)
1,155
1,152
McDonald's
Corp.
3.700%
due
01/30/26
60
64
3.500%
due
03/01/27
40
42
3.800%
due
04/01/28
100
107
Medtronic,
Inc.
Series
WI
3.150%
due
03/15/22
263
271
3.500%
due
03/15/25
150
159
Merck
&
Co.,
Inc.
2.750%
due
02/10/25
40
41
3.400%
due
03/07/29
265
282
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
78
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Mercury
General
Corp.
4.400%
due
03/15/27
150
154
MetLife,
Inc.
6.400%
due
12/15/36
100
114
Metropolitan
Life
Global
Funding
I
2.819%
due
01/08/21
(Ê)(Þ)
1,510
1,511
Microsoft
Corp.
2.875%
due
02/06/24
427
442
2.700%
due
02/12/25
40
41
2.400%
due
08/08/26
200
201
3.300%
due
02/06/27
410
434
4.100%
due
02/06/37
200
228
3.750%
due
02/12/45
100
109
MidAmerican
Energy
Co.
3.700%
due
09/15/23
237
249
Midwest
Connector
Capital
Co.
LLC
3.625%
due
04/01/22
(Þ)
267
273
Mondelez
International,
Inc.
4.125%
due
05/07/28
210
227
Morgan
Stanley
2.443%
due
10/24/23
(Ê)
145
148
3.737%
due
04/24/24
(Ê)
170
177
Series
F
8.000%
due
04/29/24
195
207
Series
GMTN
3.772%
due
01/24/29
(Ê)
70
74
4.431%
due
01/23/30
(Ê)
325
360
MPLX,
LP
4.000%
due
03/15/28
40
42
4.800%
due
02/15/29
285
314
4.500%
due
04/15/38
80
81
4.700%
due
04/15/48
140
143
5.500%
due
02/15/49
60
68
Series
WI
4.500%
due
07/15/23
170
180
6.500%
due
09/01/28
40
43
Mutual
of
Omaha
Insurance
Co.
1.737%
due
07/26/23
(Ê)(Þ)
205
209
National
Oilwell
Varco,
Inc.
7.680%
due
12/01/22
230
230
NBCUniversal
Media
LLC
0.400%
due
01/27/23
368
381
5.950%
due
04/01/41
50
66
NCL
Corp.,
Ltd.
4.750%
due
12/15/21
(Þ)
24
24
Nestle
Holdings,
Inc.
3.100%
due
09/24/21
(Þ)
264
269
Netflix,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.375%
due
02/01/21
20
21
Nevada
Power
Co.
5.450%
due
05/15/41
208
249
New
Cingular
Wireless
Services,
Inc.
8.750%
due
03/01/31
170
237
Newell
Brands,
Inc.
3.850%
due
04/01/23
60
61
4.200%
due
04/01/26
40
40
Series
WI
0.110%
due
11/15/23
520
534
Newmark
Group,
Inc.
Series
WI
6.125%
due
11/15/23
215
227
Noble
Energy,
Inc.
3.900%
due
11/15/24
150
156
3.850%
due
01/15/28
80
82
5.250%
due
11/15/43
10
11
4.950%
due
08/15/47
40
42
Northern
Natural
Gas
Co.
4.250%
due
06/01/21
(Þ)
65
67
4.300%
due
01/15/49
(Þ)
246
267
Northrop
Grumman
Corp.
2.550%
due
10/15/22
270
271
2.930%
due
01/15/25
80
82
Series
F0TZ
3.250%
due
01/15/28
210
215
Novartis
Capital
Corp.
2.400%
due
05/17/22
247
249
NVR,
Inc.
3.950%
due
09/15/22
275
285
Oasis
Petroleum,
Inc.
6.875%
due
03/15/22
10
10
Occidental
Petroleum
Corp.
3.125%
due
02/15/22
30
30
3.400%
due
04/15/26
50
51
3.000%
due
02/15/27
360
356
4.625%
due
06/15/45
30
32
4.400%
due
04/15/46
20
21
4.100%
due
02/15/47
190
187
4.200%
due
03/15/48
70
71
ONEOK,
Inc.
7.500%
due
09/01/23
204
239
Oracle
Corp.
2.625%
due
02/15/23
220
223
Owens
Corning
7.000%
due
12/01/36
190
225
Pacific
Life
Insurance
Co.
4.300%
due
10/24/67
(Ê)(Þ)
120
118
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
79
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Parker-Hannifin
Corp.
3.250%
due
06/14/29
135
140
PepsiCo,
Inc.
2.750%
due
03/05/22
224
228
Pfizer,
Inc.
1.950%
due
06/03/21
269
268
Philip
Morris
International,
Inc.
2.500%
due
08/22/22
90
90
4.500%
due
03/20/42
(Ê)
40
43
Series
5YR
2.500%
due
11/02/22
60
60
Series
NCD
2.375%
due
08/17/22
481
481
Phillips
66
5.875%
due
05/01/42
(Ê)
204
252
Plains
All
American
Pipeline,
LP
/
PAA
Finance
Corp.
3.600%
due
08/03/21
220
223
PNC
Bank
NA
Series
BKNT
2.450%
due
11/05/20
219
219
Precision
Castparts
Corp.
2.500%
due
01/15/23
240
241
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
9.250%
due
05/15/23
(Þ)
35
37
Principal
Financial
Group,
Inc.
3.700%
due
05/15/29
120
126
Procter
&
Gamble
Co.
(The)
2.150%
due
08/11/22
270
272
Progress
Energy,
Inc.
4.400%
due
01/15/21
30
31
7.000%
due
10/30/31
173
233
PSEG
Power
LLC
12.000%
due
04/15/31
170
233
Public
Service
Electric
&
Gas
Co.
3.250%
due
09/01/23
190
197
3.700%
due
05/01/28
180
194
QUALCOMM,
Inc.
Series
000A
2.600%
due
01/30/23
225
225
QVC,
Inc.
6.700%
due
03/15/23
410
416
Range
Resources
Corp.
5.875%
due
07/01/22
30
30
Series
WI
4.875%
due
05/15/25
110
97
Raytheon
Co.
Series
3622
2.760%
due
10/15/20
257
260
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Regency
Energy
Partners,
LP
/
Regency
Energy
Finance
Corp.
3.600%
due
11/13/20
60
64
Reliance
Holding
USA,
Inc.
4.500%
due
10/19/20
(Þ)
231
236
Resolute
Forest
Products,
Inc.
5.875%
due
05/15/23
110
111
Reynolds
American,
Inc.
4.450%
due
06/12/25
160
170
8.125%
due
05/01/40
430
558
5.850%
due
08/15/45
70
75
Reynolds
Group
Issuer,
Inc.
/
Reynolds
Group
Issuer
LLC
5.750%
due
10/15/20
81
82
Rockies
Express
Pipeline
LLC
4.950%
due
07/15/29
(Þ)
185
192
Rohm
&
Haas
Co.
7.850%
due
07/15/29
179
238
Ryder
System,
Inc.
3.500%
due
06/01/21
180
184
Sabal
Trail
Transmission
LLC
4.246%
due
05/01/28
(Þ)
239
255
Sabine
Pass
Liquefaction
LLC
Series
WI
5.750%
due
05/15/24
310
345
5.000%
due
03/15/27
210
230
Sabra
Health
Care
REIT,
Inc.
4.800%
due
06/01/24
80
82
Salesforce.com,
Inc.
3.250%
due
04/11/23
70
73
3.700%
due
04/11/28
30
32
Santander
Holdings
USA,
Inc.
4.450%
due
12/03/21
350
364
4.500%
due
07/17/25
20
21
Schlumberger
Holdings
Corp.
4.000%
due
12/21/25
(Þ)
40
42
Sempra
Energy
3.550%
due
06/15/24
252
260
Sherwin-Williams
Co.
(The)
3.125%
due
06/01/24
249
253
Sierra
Pacific
Power
Co.
Series
WI
2.600%
due
05/01/26
(Ê)
236
234
Smithfield
Foods,
Inc.
5.200%
due
04/01/29
(Þ)
280
305
South
Carolina
Electric
&
Gas
Co.
4.250%
due
08/15/28
260
289
4.600%
due
06/15/43
(Ê)
120
136
Southern
California
Edison
Co.
3.875%
due
06/01/21
226
230
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
80
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Southern
Co.
Gas
Capital
Corp.
0.570%
due
10/01/34
196
245
Southern
Natural
Gas
Co.
LLC
/
Southern
Natural
Issuing
Corp.
5.500%
due
10/13/21
230
237
Southern
Power
Co.
4.150%
due
12/01/25
220
234
Southwest
Airlines
Co.
2.650%
due
11/05/20
135
136
2.750%
due
11/16/22
95
96
Spectrum
Brands,
Inc.
Series
WI
5.750%
due
07/15/25
50
52
Sprint
Capital
Corp.
8.750%
due
03/15/32
560
648
Sprint
Corp.
Series
WI
4.127%
due
06/20/21
(Ê)
50
53
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
3.360%
due
09/20/21
(Þ)
113
113
4.738%
due
03/20/25
(Þ)
1,060
1,100
5.152%
due
03/20/28
(Þ)
200
206
Starbucks
Corp.
3.800%
due
08/15/25
220
234
SunTrust
Banks,
Inc.
Series
BKNT
4.050%
due
11/03/25
230
248
Sysco
Corp.
2.500%
due
07/15/21
225
226
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
4.250%
due
11/15/23
20
20
5.875%
due
04/15/26
20
21
6.500%
due
07/15/27
(Þ)
30
33
6.875%
due
01/15/29
(Þ)
30
33
Tennessee
Gas
Pipeline
Co.
LLC
8.375%
due
06/15/32
270
366
Thermo
Fisher
Scientific,
Inc.
11.000%
due
09/19/26
228
230
Time
Warner
Cable
LLC
3.000%
due
02/15/21
150
153
0.650%
due
05/20/22
210
254
6.550%
due
05/01/37
150
173
7.500%
due
06/15/39
75
87
5.875%
due
11/15/40
(Ê)
120
130
Time
Warner
Entertainment
Co.,
LP
8.375%
due
03/15/23
182
216
TJX
Cos.,
Inc.
(The)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.750%
due
06/15/21
246
249
2.250%
due
09/15/26
10
10
Toll
Brothers
Finance
Corp.
4.375%
due
04/15/23
30
31
Toyota
Motor
Credit
Corp.
Series
GMTN
2.800%
due
07/13/22
245
250
Transcontinental
Gas
Pipe
Line
Co.
LLC
Series
WI
7.850%
due
02/01/26
220
281
Tyson
Foods,
Inc.
3.950%
due
08/15/24
237
251
Unilever
Capital
Corp.
1.375%
due
07/28/21
254
250
Union
Pacific
Corp.
2.950%
due
01/15/23
269
274
3.750%
due
07/15/25
60
64
3.950%
due
09/10/28
250
274
4.500%
due
09/10/48
140
159
Union
Pacific
Railroad
Co.
Pass-Through
Trust
Series
06-1
2.375%
due
07/02/30
96
109
United
Airlines
Pass-Through
Trust
Series
2016-1
Class
B
3.650%
due
01/07/26
329
329
Series
2018-1
Class
B
4.600%
due
03/01/26
188
195
United
Rentals
NA,
Inc.
6.500%
due
12/15/26
20
22
4.875%
due
01/15/28
30
31
5.250%
due
01/15/30
60
62
United
Technologies
Corp.
2.840%
due
07/20/21
20
23
1.950%
due
11/01/21
232
230
3.100%
due
06/01/22
100
102
3.650%
due
08/16/23
160
167
3.950%
due
08/16/25
30
32
4.125%
due
11/16/28
150
165
UnitedHealth
Group,
Inc.
1.950%
due
10/15/20
272
271
1.000%
due
06/30/21
10
10
0.375%
due
07/13/21
60
77
2.875%
due
12/15/21
40
41
4.625%
due
07/15/35
100
115
Class
A
2.700%
due
07/15/20
70
70
Universal
Health
Services,
Inc.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
81
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.750%
due
08/01/22
(Þ)
216
218
Univision
Communications,
Inc.
5.125%
due
05/15/23
(Þ)
50
49
5.125%
due
02/15/25
(Þ)
60
57
US
Airways
Pass-Through
Trust
Series
2012-1
Class
A
7.000%
due
10/01/24
428
471
Series
A
Class
A
7.125%
due
10/22/23
248
279
US
Bancorp
2.350%
due
01/29/21
267
268
US
Bank
NA
Series
BKNT
2.050%
due
10/23/20
274
273
3.150%
due
04/26/21
1,590
1,619
Valeant
Pharmaceuticals
International,
Inc.
9.250%
due
04/01/26
(Þ)
40
45
Valero
Energy
Corp.
10.500%
due
03/15/39
151
247
Validus
Holdings,
Ltd.
8.875%
due
01/26/40
325
495
Verizon
Communications,
Inc.
2.625%
due
08/15/26
70
70
4.125%
due
03/16/27
40
44
3.875%
due
02/08/29
120
129
4.016%
due
12/03/29
(Þ)
239
259
7.750%
due
12/01/30
765
1,047
4.500%
due
08/10/33
260
293
0.310%
due
08/29/36
20
21
5.250%
due
03/16/37
80
96
5.500%
due
03/16/47
10
13
Series
WI
3.376%
due
02/15/25
178
186
4.329%
due
09/21/28
123
136
4.862%
due
08/21/46
40
47
Viacom,
Inc.
3.875%
due
04/01/24
20
21
6.250%
due
02/28/57
(Ê)
685
709
Visa,
Inc.
3.150%
due
12/14/25
150
157
4.300%
due
12/14/45
390
461
Vistra
Operations
Co.
LLC
3.550%
due
07/15/24
(Þ)
370
372
4.300%
due
07/15/29
(Þ)
290
294
VOC
Escrow,
Ltd.
5.000%
due
02/15/28
(Þ)
60
61
Wachovia
Capital
Trust
II
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.097%
due
01/15/27
(Ê)
485
446
Walmart,
Inc.
1.900%
due
12/15/20
250
249
3.700%
due
06/26/28
150
164
Walt
Disney
Co.
(The)
5.200%
due
12/01/22
240
242
6.650%
due
11/15/37
(Þ)
40
57
6.900%
due
08/15/39
(Þ)
185
272
Warner
Media
LLC
3.940%
due
06/01/24
185
192
Waste
Management,
Inc.
3.500%
due
05/15/24
190
199
2.950%
due
06/15/24
220
226
3.200%
due
06/15/26
100
104
3.450%
due
06/15/29
220
231
4.150%
due
07/15/49
40
44
Wells
Fargo
&
Co.
2.500%
due
03/04/21
668
670
4.600%
due
04/01/21
220
228
3.069%
due
01/24/23
485
492
2.269%
due
10/31/23
(Ê)
1,280
1,304
3.750%
due
01/24/24
535
562
3.000%
due
04/22/26
400
404
3.000%
due
10/23/26
260
263
3.196%
due
06/17/27
(Ê)
330
336
4.150%
due
01/24/29
545
593
5.375%
due
11/02/43
200
242
0.650%
due
11/04/44
10
11
4.400%
due
06/14/46
230
249
4.750%
due
12/07/46
330
376
Series
BKNT
2.600%
due
01/15/21
267
268
Series
GMTN
4.300%
due
07/22/27
520
561
4.900%
due
11/17/45
250
290
Series
GMTN
Class
S
2.600%
due
07/22/20
570
572
Western
Midstream
Operating,
LP
4.650%
due
07/01/26
40
41
Whiting
Petroleum
Corp.
5.750%
due
03/15/21
40
40
Williams
Cos.,
Inc.
(The)
5.800%
due
11/15/43
200
232
Series
A
7.500%
due
01/15/31
80
103
XPO
Logistics,
Inc.
6.500%
due
06/15/22
(Þ)
30
31
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
82
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
164,161
International
Debt
-
7.9%
1011778
B.C.
Unlimited
Liability
Co.
1st
Lien
Term
Loan
B4
4.652%
due
02/17/24
(~)(Ê)
46
46
1011778
BC
ULC
/
New
Red
Finance,
Inc.
4.250%
due
05/15/24
(Þ)
70
71
ABN
AMRO
Bank
NV
2.650%
due
01/19/21
(Þ)
227
228
Abu
Dhabi
Government
International
Bond
Series
C
2.500%
due
10/11/22
(Þ)
200
201
Actavis
Funding
SCS
3.450%
due
03/15/22
285
291
3.800%
due
03/15/25
60
62
4.550%
due
03/15/35
10
10
Adani
Abbot
Point
Terminal
Pty,
Ltd.
4.450%
due
12/15/22
(Þ)
253
245
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
3.300%
due
01/23/23
180
182
Series
WI
5.000%
due
10/01/21
390
409
Alcoa
Nederland
Holding
BV
6.750%
due
09/30/24
(Þ)
200
211
Alibaba
Group
Holding,
Ltd.
2.800%
due
06/06/23
270
273
Series
WI
3.125%
due
11/28/21
239
243
Alimentation
Couche-Tard,
Inc.
3.550%
due
07/26/27
(Þ)
220
224
ALROSA
Finance
SA
7.750%
due
11/03/20
(Þ)
198
210
Ambac
LSNI
LLC
7.319%
due
02/12/23
(Ê)(Þ)
4,296
4,367
America
Movil
SAB
de
CV
3.125%
due
07/16/22
280
286
Anglo
American
Capital
PLC
3.625%
due
09/11/24
(Þ)
200
204
ArcelorMittal
7.250%
due
02/25/22
110
119
6.125%
due
06/01/25
10
11
4.550%
due
03/11/26
50
53
Argentine
Republic
Government
International
Bond
5.625%
due
01/26/22
340
286
6.875%
due
01/11/48
210
155
Series
NY
4.680%
due
12/31/38
(~)(Ê)
160
93
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
WI
7.500%
due
04/22/26
170
143
AstraZeneca
PLC
2.375%
due
11/16/20
525
525
Banco
de
Bogota
SA
Series
EMTQ
4.375%
due
08/03/27
(Þ)
223
229
Banco
Santander
SA
3.848%
due
04/12/23
200
208
2.706%
due
06/27/24
400
401
4.379%
due
04/12/28
200
213
Bancolombia
SA
5.950%
due
06/03/21
705
744
Bangkok
Bank
PCL
4.500%
due
12/01/21
(Þ)
219
227
Banistmo
SA
Series
MTQ0
3.650%
due
09/19/22
(Þ)
250
251
Bank
of
Montreal
2.900%
due
03/26/22
270
274
3.803%
due
12/15/32
(Ê)
20
20
Bank
of
Nova
Scotia
(The)
Series
BKNT
2.500%
due
01/08/21
271
272
Barclays
Bank
PLC
5.140%
due
10/14/20
261
268
Barclays
PLC
4.338%
due
05/16/24
(Ê)
335
346
4.972%
due
05/16/29
(Ê)
200
213
4.950%
due
01/10/47
250
263
Basell
Finance
Co.
BV
8.100%
due
03/15/27
(Þ)
186
236
BBVA
Bancomer
SA
8.550%
due
08/14/25
(Þ)
258
271
BHP
Billiton
Finance
USA,
Ltd.
2.875%
due
02/24/22
5
5
BNP
Paribas
SA
4.705%
due
01/10/25
(Ê)(Þ)
260
279
4.400%
due
08/14/28
(Þ)
200
217
4.375%
due
03/01/33
(Ê)(Þ)
200
206
Series
144a
5.198%
due
01/10/30
(Ê)(Þ)
400
458
BP
Capital
Markets
PLC
1.300%
due
05/06/22
222
229
Braskem
Netherlands
Finance
BV
3.500%
due
01/10/23
(Þ)
285
286
Brazil
Government
International
Bond
0.250%
due
12/22/22
350
345
0.550%
due
01/05/23
220
218
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
83
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.625%
due
01/13/28
740
776
0.178%
due
01/07/41
(Ê)
170
182
British
Telecommunications
PLC
9.125%
due
12/15/30
30
45
Brookfield
Finance,
Inc.
4.000%
due
04/01/24
218
229
Canadian
Imperial
Bank
of
Commerce
Series
BKNT
2.100%
due
10/05/20
246
246
3.500%
due
09/13/23
660
690
Canadian
Oil
Sands,
Ltd.
6.100%
due
06/30/21
(Þ)
680
704
Cedar
Funding,
Ltd.
Series
2018-5A
Class
A1R
3.688%
due
07/17/31
(Ê)(Þ)
1,600
1,591
Cenovus
Energy,
Inc.
6.750%
due
11/15/39
80
95
Series
WI
4.250%
due
04/15/27
540
558
CK
Hutchison
International
(17)
(II),
Ltd.
Series
0001
2.250%
due
09/29/20
(Þ)
225
224
Colombia
Government
International
Bond
0.300%
due
03/30/16
270
320
Commonwealth
Bank
of
Australia
2.490%
due
11/15/21
(Þ)
30
30
3.900%
due
07/12/47
(Þ)
30
32
Cooperatieve
Rabobank
UA
4.625%
due
12/01/23
250
268
4.375%
due
08/04/25
650
693
Credit
Suisse
Group
Funding
Guernsey,
Ltd.
Series
WI
4.875%
due
05/15/45
300
352
DAE
Funding
LLC
5.750%
due
11/15/23
(Þ)
40
42
Danone
SA
2.077%
due
11/02/21
(Þ)
690
685
2.589%
due
11/02/23
(Þ)
270
271
Danske
Bank
A/S
5.000%
due
01/12/22
(Þ)
200
209
5.375%
due
01/12/24
(Þ)
450
486
Deutsche
Telekom
International
Finance
BV
5.880%
due
09/19/21
(Þ)
251
248
Dryden
50
Senior
Loan
Fund
Series
2017-50A
Class
A1
4.007%
due
07/15/30
(Ê)(Þ)
1,230
1,228
ECAF,
Ltd.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2015-1A
Class
A1
3.473%
due
06/15/40
(Þ)
321
323
Ecopetrol
SA
5.375%
due
06/26/26
60
66
5.875%
due
05/28/45
250
276
Ecuador
Government
International
Bond
7.875%
due
01/23/28
(Þ)
200
198
Empresa
Electrica
Angamos
SA
4.875%
due
05/25/29
(Þ)
190
199
Enbridge,
Inc.
3.700%
due
07/15/27
222
229
Enel
Finance
International
NV
4.625%
due
09/14/25
(Þ)
810
869
Series
658A
3.500%
due
04/06/28
(Þ)
250
246
Eni
SpA
Series
X-R
4.000%
due
09/12/23
(Þ)
470
490
Equate
Petrochemical
BV
4.250%
due
11/03/26
(Þ)
200
209
Fairfax
Financial
Holdings,
Ltd.
Series
WI
4.850%
due
04/17/28
226
238
Gazprom
OAO
Via
Gaz
Capital
SA
6.510%
due
03/07/22
(Þ)
209
226
GE
Capital
International
Funding
Co.
Unlimited
Co.
Series
WI
2.342%
due
11/15/20
650
647
4.418%
due
11/15/35
1,163
1,147
GlaxoSmithKline
Capital
PLC
2.850%
due
05/08/22
306
311
Goldentree
Loan
Management
US
CLO
2,
Ltd.
Series
2017-2A
Class
A
3.742%
due
11/28/30
(Ê)(Þ)
1,860
1,859
HSBC
Bank
PLC
1.125%
due
05/01/25
375
448
HSBC
Holdings
PLC
3.900%
due
05/25/26
220
230
4.041%
due
03/13/28
(Ê)
410
431
4.583%
due
06/19/29
(Ê)
400
437
3.973%
due
05/22/30
(Ê)
200
209
6.250%
due
12/31/99
(Ê)
200
206
6.500%
due
12/31/99
(Ê)
200
210
ICICI
Bank,
Ltd.
4.000%
due
03/18/26
(Þ)
252
257
Indonesia
Government
International
Bond
4.350%
due
01/11/48
240
248
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
84
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
REGS
3.750%
due
04/25/22
430
441
ING
Bank
NV
5.800%
due
09/25/23
(Þ)
735
813
Intelsat
Jackson
Holdings
SA
Term
Loan
B3
6.154%
due
11/27/23
(~)(Ê)
90
89
Intesa
Sanpaolo
SpA
3.125%
due
07/14/22
(Þ)
200
198
3.375%
due
01/12/23
(Þ)
200
199
3.875%
due
01/12/28
(Þ)
287
274
Inversiones
CMPC
SA
4.500%
due
04/25/22
(Þ)
214
221
JBS
Investments
GmbH
11.000%
due
02/05/23
(Þ)
445
454
KazMunayGas
National
Co.
JSC
5.375%
due
04/24/30
(Þ)
200
221
Korea
Southern
Power
Co.,
Ltd.
3.000%
due
01/29/21
(Þ)
241
243
Kuwait
Government
International
Bond
3.500%
due
03/20/27
(Þ)
210
224
LCM
XXII,
Ltd.
Series
2016-22A
Class
A1
4.072%
due
10/20/28
(Ê)(Þ)
1,133
1,136
LCM
XXIII,
Ltd.
Series
2016-23A
Class
A1
3.992%
due
10/20/29
(Ê)(Þ)
1,020
1,024
LCM
XXV,
Ltd.
Series
2017-25A
Class
A
3.802%
due
07/20/30
(Ê)(Þ)
1,124
1,122
Lloyds
Banking
Group
PLC
4.375%
due
03/22/28
200
212
4.550%
due
08/16/28
200
216
Lloyds
TSB
Bank
PLC
1.000%
due
09/14/20
(Þ)
228
238
Lukoil
International
Finance
BV
6.125%
due
11/09/20
(Þ)
450
468
4.563%
due
01/26/38
(Þ)
212
220
LYB
International
Finance
BV
4.000%
due
07/15/23
214
225
LYB
International
Finance
II
BV
3.500%
due
03/02/27
275
280
LyondellBasell
Industries
NV
5.750%
due
04/15/24
198
223
Madison
Park
Funding
XVIII,
Ltd.
Series
2017-18A
Class
A1R
3.782%
due
10/21/30
(Ê)(Þ)
872
871
Madison
Park
Funding
XXVI,
Ltd.
Series
2017-26A
Class
AR
3.952%
due
07/29/30
(Ê)(Þ)
780
780
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Magnetite
XVIII,
Ltd.
Series
2018-18A
Class
AR
3.598%
due
11/15/28
(Ê)(Þ)
1,488
1,486
Marks
And
Spencer
PLC
7.125%
due
12/01/37
(Þ)
207
231
Medtronic
Global
Holdings
SCA
3.350%
due
04/01/27
160
170
Mexico
Generadora
de
Energia
S
de
RL
5.500%
due
12/06/32
(Þ)
—
—
Mexico
Government
International
Bond
2.370%
due
04/15/27
(Ê)
30
36
4.750%
due
03/08/44
20
21
4.350%
due
01/15/47
500
496
Mitsubishi
UFJ
Financial
Group,
Inc.
2.950%
due
03/01/21
227
229
2.998%
due
02/22/22
60
61
Mylan
NV
Series
WI
3.950%
due
06/15/26
390
376
Myriad
International
Holdings
BV
6.000%
due
07/18/20
(Þ)
206
212
4.850%
due
07/06/27
(Þ)
250
267
New
Gold,
Inc.
6.250%
due
11/15/22
(Þ)
235
219
Nokia
OYJ
6.625%
due
05/15/39
350
384
Nordea
Bank
AB
7.150%
due
05/13/21
(Þ)
265
275
NOVA
Chemicals
Corp.
5.250%
due
06/01/27
(Þ)
340
362
Numericable
Group
SA
Term
Loan
B12
6.082%
due
01/05/26
(Ê)
86
83
Nutrien,
Ltd.
3.625%
due
03/15/24
264
274
NXP
BV
/
NXP
Funding
LLC
4.625%
due
06/15/22
(Þ)
254
266
Ontario
Teachers'
Cadillac
Fairview
Properties
Trust
4.125%
due
02/01/29
(Þ)
265
288
Park
Aerospace
Holdings,
Ltd.
5.250%
due
08/15/22
(Þ)
50
53
Pernod
Ricard
SA
4.450%
due
01/15/22
(Þ)
150
157
Peru
Government
International
Bond
2.750%
due
09/21/22
110
152
6.550%
due
03/14/37
30
42
Petrobras
Global
Finance
BV
6.250%
due
03/17/24
100
109
Series
WI
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
85
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.299%
due
01/27/25
1,605
1,704
Petroleos
Mexicanos
6.625%
due
06/15/35
10
9
Series
WI
4.625%
due
09/21/23
345
337
6.875%
due
08/04/26
220
222
Poland
Government
International
Bond
5.125%
due
04/21/21
400
420
Provincia
de
Buenos
Aires
6.500%
due
02/15/23
(Þ)
140
117
Riserva
CLO
Ltd.
Series
2019-3A
Class
AR
3.538%
due
10/18/28
(Ê)(Þ)
940
940
Royal
Bank
of
Canada
2.150%
due
10/26/20
70
70
Series
GMTN
2.500%
due
01/19/21
228
229
3.200%
due
04/30/21
70
71
Royal
Bank
of
Scotland
Group
PLC
2.400%
due
12/15/22
70
75
3.875%
due
09/12/23
665
682
10.000%
due
05/28/24
220
232
4.519%
due
06/25/24
(Ê)
200
208
4.269%
due
03/22/25
(Ê)
200
207
Sands
China,
Ltd.
Series
WI
5.125%
due
08/08/25
400
429
Sanofi
3.250%
due
03/29/21
232
239
Santander
UK
Group
Holdings
PLC
Class
N
4.750%
due
09/15/25
(Þ)
226
234
Santander
UK
PLC
2.250%
due
11/07/23
(Þ)
255
269
Saudi
Arabian
Oil
Co.
3.500%
due
04/16/29
(Þ)
200
202
Schlumberger
Norge
AS
3.620%
due
01/18/33
(Þ)
70
72
Schneider
Electric
SE
2.950%
due
09/27/22
(Þ)
200
203
Shackleton
CLO,
Ltd.
Series
2018-4RA
Class
A1A
3.597%
due
04/13/31
(~)(Ê)(Þ)
930
919
Shell
International
Finance
BV
2.375%
due
08/21/22
269
270
2.875%
due
05/10/26
40
41
4.375%
due
05/11/45
220
253
4.000%
due
05/10/46
80
88
Siemens
Financieringsmaatschappij
NV
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.700%
due
09/15/21
(Þ)
250
247
Sky,
Ltd.
5.250%
due
09/16/24
(Þ)
290
308
Southern
Copper
Corp.
6.750%
due
04/16/40
10
13
5.250%
due
11/08/42
440
482
Stars
Group
Holdings
BV
Term
Loan
B
5.830%
due
07/10/25
(~)(Ê)
9
9
Sumitomo
Mitsui
Financial
Group,
Inc.
Series
5FXD
2.058%
due
07/14/21
90
90
Suncor
Energy,
Inc.
3.600%
due
12/01/24
214
223
Suzano
Austria
GmbH
6.000%
due
01/15/29
(Þ)
230
251
7.000%
due
03/16/47
(Þ)
160
182
Svenska
Handelsbanken
AB
Series
BKNT
3.350%
due
05/24/21
250
255
Syngenta
Finance
NV
1.000%
due
03/28/22
247
247
Takeda
Pharmaceutical
Co.,
Ltd.
4.400%
due
11/26/23
(Þ)
165
177
5.000%
due
11/26/28
(Þ)
230
260
Telefonica
Emisiones
SA
5.462%
due
02/16/21
231
242
5.213%
due
03/08/47
150
165
Teva
Pharmaceutical
Finance
Co.
BV
3.650%
due
11/10/21
20
19
Series
2
3.650%
due
11/10/21
10
10
Teva
Pharmaceutical
Finance
Netherlands
III
BV
2.200%
due
07/21/21
210
199
2.800%
due
07/21/23
110
95
THL
Credit
Wind
River
CLO,
Ltd.
Series
2017-2A
Class
AR
4.010%
due
10/18/30
(Ê)(Þ)
1,016
1,011
Toronto-Dominion
Bank
(The)
3.250%
due
06/11/21
90
92
Series
GMTN
Class
A
1.850%
due
09/11/20
225
224
Total
Capital
Canada,
Ltd.
2.750%
due
07/15/23
266
271
Total
Capital
International
SA
2.750%
due
06/19/21
242
245
Total
Capital
SA
4.250%
due
12/15/21
230
241
Transocean
Sentry,
Ltd.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
86
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.375%
due
05/15/23
(Þ)
245
245
Trust
F/1401
5.250%
due
01/30/26
(Þ)
212
222
UBS
AG
2.450%
due
12/01/20
(Þ)
780
780
UBS
Group
Funding
Switzerland
AG
3.491%
due
05/23/23
(Þ)
270
277
4.253%
due
03/23/28
(Þ)
200
215
7.000%
due
12/31/99
(Ê)(Þ)
460
488
UniCredit
SpA
6.572%
due
01/14/22
(Þ)
370
393
Unitymedia
Finance
LLC
1st
Lien
Term
Loan
D
4.644%
due
01/15/26
(~)(Ê)
90
90
Vale
Overseas,
Ltd.
6.875%
due
11/21/36
130
156
Vodafone
Group
PLC
4.375%
due
05/30/28
250
270
5.250%
due
05/30/48
70
77
Voya
CLO,
Ltd.
Series
2017-2A
Class
A1R
3.838%
due
04/17/30
(Ê)(Þ)
1,428
1,427
Westpac
Banking
Corp.
2.600%
due
11/23/20
80
80
Woori
Bank
5.875%
due
04/13/21
(Þ)
232
245
Ziggo
Secured
Finance
Partnership
1st
Lien
Term
Loan
E
4.894%
due
04/27/25
(~)(Ê)
46
45
72,191
Loan
Agreements
-
0.7%
Air
Medical
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
5.644%
due
04/28/22
(~)(Ê)
116
109
Albertson's
LLC
1st
Lien
Term
Loan
B7
5.402%
due
11/16/25
(~)(Ê)
25
25
Albertson's
LLC
Term
Loan
B6
5.402%
due
06/22/23
(~)(Ê)
152
152
American
Axle
&
Manufacturing,
Inc.
1st
Lien
Term
Loan
B
4.721%
due
04/06/24
(~)(Ê)
14
13
Aramark
Services,
Inc.
1st
Lien
Term
Loan
B3
4.080%
due
03/11/25
(~)(Ê)
48
48
Asurion
LLC
1st
Lien
Term
Loan
B7
5.402%
due
11/03/24
(~)(Ê)
110
109
Asurion
LLC
Term
Loan
B4
5.402%
due
08/04/22
(~)(Ê)
139
139
Atlantic
Aviation
FBO,
Inc.
Term
Loan
B
6.160%
due
12/06/25
(~)(Ê)
20
20
Avolon
LLC
1st
Lien
Term
Loan
B3
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.133%
due
01/15/25
(~)(Ê)
110
110
BCP
CC
Holdings
Merger
Sub,
Inc.
Term
Loan
B1
5.080%
due
12/01/24
(~)(Ê)
50
50
Berry
Plastics
Group,
Inc.
1st
Lien
Term
Loan
Q
4.412%
due
10/01/22
(~)(Ê)
34
33
Blackstone
CQP
Hodco,
LP
Term
Loan
B
5.887%
due
06/11/24
(Ê)
40
40
Boyd
Gaming
Corp.
Term
Loan
B
4.622%
due
09/15/23
(~)(Ê)
30
30
Brickman
Group,
Ltd.
1st
Lien
Term
Loan
B
4.938%
due
08/10/25
(~)(Ê)
40
40
Brookfield
WEC
Holdings,
Inc.
Term
Loan
5.902%
due
08/01/25
(~)(Ê)
249
248
Caesars
Resort
Collection
LLC
1st
Lien
Term
Loan
B
5.152%
due
12/22/24
(~)(Ê)
139
137
Change
Healthcare
Holdings
LLC
1st
Lien
Term
Loan
B
5.152%
due
03/01/24
(~)(Ê)
146
145
Charter
Communications
Operating
LLC
1st
Lien
Term
Loan
B
4.330%
due
04/30/25
(~)(Ê)
158
158
CityCenter
Holdings
LLC
Term
Loan
B
4.652%
due
04/18/24
(~)(Ê)
32
32
CWGS
Group
LLC
Term
Loan
5.190%
due
11/08/23
(~)(Ê)
68
63
Dell
International
LLC
1st
Lien
Term
Loan
B
4.410%
due
09/07/23
(~)(Ê)
49
48
Digicert
Holdings,
Inc.
1st
Lien
Term
Loan
6.402%
due
10/31/24
(~)(Ê)
229
227
Edelman
Financial
Center
LLC
Term
Loan
B1
5.644%
due
07/19/25
(~)(Ê)
70
69
First
Data
Corp.
1st
Lien
Term
Loan
4.404%
due
04/26/24
(~)(Ê)
54
54
First
Data
Corp.
Term
Loan
4.404%
due
07/10/22
(~)(Ê)
8
8
Focus
Financial
Partners
LLC
1st
Lien
Term
Loan
B2
4.902%
due
07/03/24
(~)(Ê)
10
10
Golden
Nugget,
Inc.
1st
Lien
Term
Loan
B
5.149%
due
10/04/23
(~)(Ê)
56
56
HC
Group
Holdings
II,
Inc.
Term
Loan
B
0.000%
due
05/21/26
(~)(Ê)(v)
90
90
HCA,
Inc.
Term
Loan
B10
4.330%
due
03/07/25
(Ê)
98
98
Hilton
Worldwide
Finance
LLC
Term
Loan
B2
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
87
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.154%
due
06/22/26
(Ê)
95
95
IHeartCommunications,
Inc.
Term
Loan
0.000%
due
05/01/26
(~)(Ê)(v)
110
110
Intrawest
Resorts
Holdings,
Inc.
1st
Lien
Term
Loan
B1
5.402%
due
07/31/24
(~)(Ê)
139
139
Jaguar
Holding
Co.
II
1st
Lien
Term
Loan
4.902%
due
08/18/22
(~)(Ê)
47
46
Level
3
Financing,
Inc.
Term
Loan
B
4.652%
due
02/22/24
(~)(Ê)
220
217
LPL
Holdings,
Inc.
Term
Loan
B
4.654%
due
09/21/24
(~)(Ê)
20
20
MA
Finance
Co.
LLC
1st
Lien
Term
Loan
B
4.902%
due
06/21/24
(~)(Ê)
4
4
McAfee
LLC
Term
Loan
B1
6.080%
due
09/29/24
(~)(Ê)
50
50
MGM
Growth
Properties
LLC
1st
Lien
Term
Loan
B
4.402%
due
04/25/23
(~)(Ê)
126
125
Michaels
Stores,
Inc.
1st
Lien
Term
Loan
B
4.903%
due
01/28/23
(~)(Ê)
78
76
MultiPlan,
Inc.
Term
Loan
B
5.080%
due
05/25/23
(~)(Ê)
217
207
Panther
BF
Aggregator
2,
LP
Term
Loan
B
5.902%
due
03/14/26
(~)(Ê)
170
169
Party
City
Holdings,
Inc.
1st
Lien
Term
Loan
4.910%
due
08/19/22
(~)(Ê)
70
70
PCI
Gaming
Authority,
Inc.
Term
Loan
5.402%
due
05/15/26
(Ê)
90
90
Phoenix
Guarantor
Inc.
Term
Loan
B1
6.921%
due
03/05/26
(~)(Ê)
124
123
Post
Holdings,
Inc.
Incremental
Term
Loan
B
4.404%
due
05/24/24
(~)(Ê)
102
102
Prime
Security
Services
Borrower
LLC
Term
Loan
B1
5.152%
due
05/02/22
(~)(Ê)
156
155
RegionalCare
Hospital
Partners
Holdings,
Inc.
Term
Loan
B
6.904%
due
11/16/25
(~)(Ê)
189
188
Reynolds
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
5.152%
due
02/05/23
(~)(Ê)
154
153
RPI
Finance
Trust
Term
Loan
B
4.402%
due
03/27/23
(~)(Ê)
59
60
Scientific
Games
International,
Inc.
1st
Lien
Term
Loan
B5
5.216%
due
08/14/24
(~)(Ê)
214
211
Seattle
SpinCo,
Inc.1st
Lien
Term
Loan
B3
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.902%
due
06/21/24
(~)(Ê)
26
25
Sprint
Communications,
Inc.
1st
Lien
Term
Loan
B
4.938%
due
02/02/24
(~)(Ê)
17
16
SS&C
Technologies,
Inc.
1st
Lien
Term
Loan
B5
4.652%
due
04/16/25
(~)(Ê)
208
207
Sungard
Availability
Services
Capital,
Inc.
Delayed
Draw
Term
Loan
4.573%
due
05/01/25
(Ê)
43
43
Sungard
Availability
Services
Capital,
Inc.
Term
Loan
6.440%
due
11/03/22
(~)(Ê)
124
114
TKC
Holdings,
Inc.
1st
Lien
Term
Loan
6.160%
due
02/01/23
(~)(Ê)
219
214
Trans
Union
LLC
1st
Lien
Term
Loan
B3
4.402%
due
04/09/23
(~)(Ê)
46
46
UFC
Holdings
LLC
1st
Lien
Term
Loan
5.660%
due
04/30/26
(~)(Ê)
110
110
Univision
Communications,
Inc.
Term
Loan
C5
5.152%
due
03/15/24
(~)(Ê)
145
138
UPC
Financing
Partnership
1st
Lien
Term
Loan
AR
4.894%
due
01/15/26
(~)(Ê)
74
74
Valeant
Pharmaceuticals
International,
Inc.
Term
Loan
B
5.412%
due
05/17/25
(~)(Ê)
93
93
VICI
Properties,
Inc.
1st
Lien
Term
Loan
B
4.404%
due
12/15/24
(~)(Ê)
26
26
Virgin
Media
Bristol
LLC
1st
Lien
Term
Loan
K
4.894%
due
01/15/26
(~)(Ê)
157
156
VVC
Holding
Corp.
Term
Loan
B
7.045%
due
02/11/26
(~)(Ê)
170
169
Western
Digital
Corp.
1st
Lien
Term
Loan
B4
4.152%
due
04/29/23
(~)(Ê)
41
41
6,243
Mortgage-Backed
Securities
-
30.5%
A10
Securitization
LLC
Series
2017-AA
Class
B1
0.071%
due
05/15/36
(Þ)
961
950
American
Home
Mortgage
Investment
Trust
Series
2004-4
Class
4A
3.318%
due
02/25/45
(Ê)
14
15
Banc
of
America
Funding
Trust
Series
2005-D
Class
A1
4.633%
due
05/25/35
(~)(Ê)
324
342
Series
2006-6
Class
2A1
6.000%
due
08/25/36
822
820
Bayview
Commercial
Asset
Trust
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
88
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2007-2A
Class
A1
2.674%
due
07/25/37
(Ê)(Þ)
1,031
979
BCAP
LLC
Trust
Series
2010-RR7
Class
3A12
3.997%
due
08/26/35
(~)(Ê)(Þ)
856
790
Series
2011-R11
Class
15A1
4.672%
due
10/26/33
(~)(Ê)(Þ)
75
77
Series
2011-R11
Class
20A5
4.484%
due
03/26/35
(~)(Ê)(Þ)
18
18
Bear
Stearns
ALT-A
Trust
Series
2005-2
Class
1M1
3.236%
due
03/25/35
(Ê)
875
856
Bear
Stearns
ARM
Trust
Series
2004-3
Class
2A
4.017%
due
07/25/34
(~)(Ê)
132
134
Bear
Stearns
Commercial
Mortgage
Securities
Trust
Series
2007-T26
Class
AM
5.513%
due
01/12/45
(~)(Ê)
90
90
Benchmark
Mortgage
Trust
Series
2018-B5
Class
A3
3.944%
due
07/15/51
1,977
2,164
Series
2018-B5
Class
A4
4.208%
due
07/15/51
1,987
2,216
Series
2018-B7
Class
A4
4.510%
due
11/15/51
1,567
1,788
Series
2018-B8
Class
A5
4.232%
due
01/15/52
2,315
2,592
Blackstone
Commercial
Mortgage
Trust
Series
2018-BIOA
Class
E
4.424%
due
03/15/37
(Ê)(Þ)
1,575
1,581
BX
Commercial
Mortgage
Trust
Series
2018-BIOA
Class
D
3.715%
due
03/15/37
(Ê)(Þ)
790
790
Series
2018-IND
Class
G
4.444%
due
11/15/35
(Ê)(Þ)
154
155
BX
Trust
Series
2018-BILT
Class
C
3.120%
due
05/15/35
(Ê)(Þ)
1,650
1,651
BXP
Trust
Series
2017-GM
Class
A
3.379%
due
06/13/39
(Þ)
818
856
CAMB
Commercial
Mortgage
Trust
Series
2019-LIFE
Class
F
5.050%
due
12/15/37
(Ê)(Þ)
987
996
Series
2019-LIFE
Class
G
5.644%
due
12/15/37
(Ê)(Þ)
1,651
1,668
CFCRE
Commercial
Mortgage
Trust
Series
2016-C3
Class
A3
3.865%
due
01/10/48
1,150
1,229
CHL
Mortgage
Pass-Through
Trust
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2005-3
Class
1A2
3.066%
due
04/25/35
(Ê)
8
7
Citigroup
Commercial
Mortgage
Trust
Series
2013-375P
Class
A
3.251%
due
05/10/35
(Þ)
170
175
Series
2013-375P
Class
D
3.635%
due
05/10/35
(~)(Æ)(Ê)(Þ)
1,418
1,435
Series
2019-SST2
Class
F
4.894%
due
12/15/36
(Ê)(Þ)
430
430
Citigroup
Mortgage
Loan
Trust,
Inc.
Series
2005-2
Class
1A2A
4.913%
due
05/25/35
(~)(Ê)
293
303
Series
2005-11
Class
A2A
4.820%
due
10/25/35
(Ê)
6
6
Series
2015-2
Class
5A1
2.740%
due
03/25/47
(Ê)(Þ)
202
202
Commercial
Mortgage
Trust
Series
2013-300P
Class
A1
4.353%
due
08/10/30
(Æ)(Þ)
195
209
Series
2013-CR6
Class
B
3.397%
due
03/10/46
(Þ)
211
212
Series
2013-CR9
Class
ASB
3.834%
due
07/10/45
699
720
Series
2014-277P
Class
A
3.732%
due
08/10/49
(~)(Ê)(Þ)
205
217
Series
2015-LC19
Class
A4
3.183%
due
02/10/48
(Æ)
1,438
1,490
Series
2016-GCT
Class
A
2.681%
due
08/10/29
(Þ)
140
141
Series
2018-COR3
Class
A3
4.228%
due
05/10/51
2,944
3,266
Series
2019-521F
Class
A
3.380%
due
06/15/34
(Ê)(Þ)
1,203
1,204
Series
2019-521F
Class
D
4.030%
due
06/15/34
(Ê)(Þ)
899
900
Core
Industrial
Trust
Series
2019-CORE
Class
D
4.150%
due
12/15/31
(Ê)(Þ)
1,520
1,522
Countrywide
Alternative
Loan
Trust
Series
2007-16CB
Class
1A5
2.886%
due
08/25/37
(Ê)
451
345
Credit
Suisse
Mortgage
Capital
Certificates
Series
2017-CHOP
Class
G
8.093%
due
07/15/32
(Ê)(Þ)
600
599
Series
2019-ICE4
Class
A
3.374%
due
05/15/36
(Ê)(Þ)
940
941
Series
2019-ICE4
Class
E
4.613%
due
05/15/36
(Ê)(Þ)
1,282
1,286
Credit
Suisse
Mortgage
Trust
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
89
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2018-J1
Class
A2
3.500%
due
02/25/48
(~)(Ê)(Þ)
1,173
1,173
Series
2018-PLUM
Class
A
5.720%
due
08/15/20
(Ê)(Š)(Þ)
200
200
DBGS
Mortgage
Trust
Series
2019-1735
Class
D
4.334%
due
04/10/39
(~)(Ê)(Þ)
985
1,041
DBJPM
Mortgage
Trust
Series
2016-C3
Class
A5
2.890%
due
09/10/49
240
244
Deutsche
Mortgage
Securities,
Inc.
Re-
REMIC
Trust
Series
2007-WM1
Class
A1
3.685%
due
06/27/37
(~)(Ê)(Þ)
468
479
Fannie
Mae
4.153%
due
2020
1,347
1,369
5.500%
due
2020
3
3
4.250%
due
2021
395
407
4.283%
due
2021
399
412
4.535%
due
2021
1,158
1,181
2.500%
due
2022
162
164
5.500%
due
2022
28
29
2.000%
due
2023
649
649
2.500%
due
2024
298
302
4.500%
due
2024
3
3
2.500%
due
2025
226
228
4.500%
due
2025
142
149
2.470%
due
2026
1,085
1,085
3.030%
due
2027
475
493
3.040%
due
2027
825
863
2.000%
due
2028
1,168
1,166
2.560%
due
2028
370
371
3.625%
due
2028
585
625
3.090%
due
2029
100
105
3.160%
due
2029
50
53
3.240%
due
2029
90
95
3.260%
due
2029
80
85
3.350%
due
2029
20
21
3.540%
due
2029
370
399
3.830%
due
2029
490
539
3.500%
due
2030
112
116
2.600%
due
2031
375
370
5.000%
due
2031
114
121
6.000%
due
2032
21
24
3.000%
due
2033
995
1,013
3.500%
due
2033
745
773
5.000%
due
2033
6
6
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.500%
due
2034
154
160
5.500%
due
2034
18
20
4.500%
due
2035
444
474
3.000%
due
2037
89
90
5.500%
due
2037
115
128
5.500%
due
2038
493
547
6.000%
due
2039
44
50
4.000%
due
2040
297
315
5.500%
due
2040
573
631
6.000%
due
2040
132
149
4.000%
due
2041
504
532
6.000%
due
2041
141
160
3.500%
due
2043
1,324
1,372
4.000%
due
2044
1,009
1,078
3.500%
due
2045
1,717
1,775
3.000%
due
2046
554
562
3.500%
due
2046
281
292
4.000%
due
2046
1,599
1,684
4.500%
due
2046
528
574
3.000%
due
2047
908
924
3.500%
due
2047
619
638
4.000%
due
2047
1,802
1,879
4.500%
due
2047
628
661
3.500%
due
2048
944
970
4.000%
due
2048
2,791
2,886
4.500%
due
2048
4,497
4,708
5.000%
due
2048
603
639
3.500%
due
2049
8,183
8,378
4.000%
due
2049
8,096
8,380
4.500%
due
2049
4,108
4,292
4.000%
due
2056
1,203
1,264
4.500%
due
2056
304
325
5.500%
due
2056
279
302
3.500%
due
2057(Ê)
861
884
4.000%
due
2057
162
171
4.500%
due
2057
260
278
15
Year
TBA(Ï)
2.500%
1,100
1,107
3.000%
1,100
1,121
3.500%
3,200
3,303
30
Year
TBA(Ï)
3.000%
8,600
8,666
3.500%
5,385
5,505
4.000%
400
413
4.500%
11,665
12,189
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
90
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.000%
5,905
6,240
Fannie
Mae
Aces
Series
2014-M13
Class
AB2
2.951%
due
08/25/24
(~)(Ê)
33
34
Series
2016-M3
Class
ASQ2
2.263%
due
02/25/23
606
605
Series
2016-M6
Class
AB2
2.395%
due
05/25/26
984
993
Series
2016-M7
Class
AV2
2.157%
due
10/25/23
2,035
2,038
Series
2019-M1
Class
A2
3.555%
due
09/25/28
(~)(Ê)
70
76
Series
2019-M4
Class
A2
3.610%
due
02/25/31
90
98
Series
2019-M5
Class
A2
3.273%
due
01/25/29
150
158
Series
2019-M6
Class
A2
3.450%
due
01/01/29
170
181
Fannie
Mae
Connecticut
Avenue
Securities
Series
2014-C02
Class
1M2
5.086%
due
05/25/24
(Ê)
881
911
Series
2014-C03
Class
1M2
5.486%
due
07/25/24
(Ê)
636
667
Series
2014-C04
Class
1M2
7.116%
due
11/25/24
(Ê)
844
930
Series
2016-C04
Class
1M2
6.760%
due
01/25/29
(Ê)
50
54
Fannie
Mae
REMIC
Trust
Series
2004-W5
Class
A1
6.000%
due
02/25/47
164
188
Fannie
Mae
REMICS
Series
1999-56
Class
Z
7.000%
due
12/18/29
10
11
Series
2005-24
Class
ZE
5.000%
due
04/25/35
211
228
Series
2012-35
Class
SC
Interest
Only
STRP
4.015%
due
04/25/42
(Ê)
24
4
Series
2012-55
Class
PC
3.500%
due
05/25/42
700
731
Series
2013-54
Class
BS
Interest
Only
STRIP
3.665%
due
06/25/43
(Ê)
104
21
Series
2013-124
Class
SB
Interest
Only
STRIP
3.465%
due
12/25/43
(Ê)
116
21
Series
2016-23
Class
ST
Interest
Only
STRIP
3.515%
due
11/25/45
(Ê)
391
80
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2016-61
Class
BS
Interest
Only
STRIP
3.615%
due
09/25/46
(Ê)
338
51
Series
2017-76
Class
SB
Interest
Only
STRIP
3.615%
due
10/25/57
(Ê)
375
68
Series
2017-85
Class
SC
Interest
Only
STRIP
3.715%
due
11/25/47
(Ê)
73
12
FDIC
Trust
Series
2010-R1
Class
A
2.184%
due
05/25/50
(Þ)
38
38
Flagstar
Mortgage
Trust
Series
2017-2
Class
A5
3.500%
due
10/25/47
(~)(Ê)(Þ)
903
916
Series
2018-2
Class
A4
3.500%
due
04/25/48
(~)(Ê)(Þ)
525
530
Freddie
Mac
3.500%
due
2030
118
123
4.500%
due
2034
160
170
3.000%
due
2038
182
184
5.500%
due
2038
360
404
6.000%
due
2038
79
89
5.000%
due
2040
230
250
4.000%
due
2041
1,260
1,338
4.500%
due
2041
231
249
5.500%
due
2041
243
268
3.500%
due
2043
969
1,012
4.000%
due
2044
599
634
3.500%
due
2045
1,655
1,724
4.000%
due
2045
1,251
1,312
3.000%
due
2046
310
316
4.000%
due
2046
1,438
1,513
4.500%
due
2046
227
241
3.000%
due
2047
1,154
1,177
4.000%
due
2047
395
413
3.500%
due
2048
1,454
1,491
4.000%
due
2048
6,511
6,741
4.500%
due
2048
3,390
3,553
5.000%
due
2048
708
751
3.000%
due
2049
1,379
1,391
3.500%
due
2049
5,625
5,753
4.000%
due
2049
393
407
Freddie
Mac
Multifamily
Structured
Pass-Through
Certificates
Series
2013-K024
Class
A2
2.573%
due
09/25/22
1,530
1,552
Series
2013-K029
Class
A2
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
91
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.320%
due
02/25/23
(~)
1,450
1,510
Series
2015-K045
Class
A2
3.023%
due
01/25/25
1,020
1,060
Series
2015-K046
Class
A2
3.205%
due
03/25/25
400
420
Series
2016-K052
Class
A2
3.151%
due
11/25/25
1,110
1,165
Series
2016-K053
Class
A2
2.995%
due
12/25/25
390
406
Series
2016-K058
Class
X1
Interest
Only
STRIP
0.930%
due
08/25/26
(~)(Ê)
4,113
233
Series
2017-K070
Class
A2
3.303%
due
11/25/27
(~)(Ê)
329
350
Series
2018-K074
Class
A2
3.600%
due
01/25/28
3,204
3,473
Series
2019-K091
Class
A2
3.505%
due
03/25/29
190
206
Freddie
Mac
REMICS
Series
2003-2624
Class
QH
5.000%
due
06/15/33
73
82
Series
2006-R007
Class
ZA
6.000%
due
05/15/36
233
267
Series
2010-3632
Class
PK
5.000%
due
02/15/40
152
165
Series
2010-3653
Class
B
4.500%
due
04/15/30
234
252
Series
2011-3973
Class
SA
Interest
Only
STRIP
4.017%
due
12/15/41
(Ê)
357
74
Series
2012-4010
Class
KM
3.000%
due
01/15/42
122
125
Series
2018-4813
Class
CJ
3.000%
due
08/15/48
166
168
Freddie
Mac
Strips
Series
2014-334
Class
S7
Interest
Only
STRIP
3.627%
due
08/15/44
(Ê)
169
34
Series
2016-353
Class
S1
Interest
Only
STRIP
3.527%
due
12/15/46
(Ê)
77
13
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
Series
2014-HQ2
Class
M3
6.236%
due
09/25/24
(Ê)
522
569
Series
2015-DN1
Class
M3
6.627%
due
01/25/25
(Ê)
731
768
Series
2015-DNA2
Class
M2
5.077%
due
12/25/27
(Ê)
209
211
Series
2015-DNA3
Class
M3
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
6.916%
due
04/25/28
(Ê)
1,330
1,478
Series
2015-DNA3
Class
M3F
6.186%
due
04/25/28
(Ê)
760
839
Series
2015-HQA2
Class
M2
5.286%
due
05/25/28
(Ê)
386
391
Series
2017-DNA2
Class
B1
7.022%
due
10/25/29
(Ê)
510
581
Series
2017-DNA2
Class
M2
5.936%
due
10/25/29
(Ê)
440
470
Freddie
Mac
Whole
Loan
Securities
Trust
Series
2016-SC01
Class
M1
3.883%
due
07/25/46
(~)(Ê)
107
106
Ginnie
Mae
I
2.140%
due
2023
347
343
2.730%
due
2032
411
411
3.000%
due
2042
511
523
3.500%
due
2048
89
93
Ginnie
Mae
II
3.000%
due
2042
88
90
3.500%
due
2044
99
103
3.500%
due
2045
39
41
3.000%
due
2046
384
393
3.000%
due
2047
4,168
4,264
3.500%
due
2047
352
364
4.000%
due
2047
809
843
3.000%
due
2048
726
742
4.000%
due
2048
273
284
4.500%
due
2048
86
89
4.500%
due
2049
4,449
4,659
5.000%
due
2049
490
513
5.500%
due
2049
3,391
3,582
30
Year
TBA(Ï)
3.000%
1,300
1,328
3.500%
4,700
4,854
4.000%
2,400
2,488
4.500%
160
167
Ginnie
Mae
REMICS
Series
2012-135
Interest
Only
STRIP
0.615%
due
01/16/53
(~)(Ê)
1,837
66
Series
2013-53
Interest
Only
STRIP
3.500%
due
04/20/43
784
98
Series
2016-21
Class
ST
Interest
Only
STRIP
5.638%
due
02/20/46
(Ê)
246
42
Series
2016-51
Class
NS
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
92
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Interest
Only
STRIP
5.518%
due
04/20/46
(Ê)
118
20
Series
2018-130
Class
A
3.250%
due
05/16/59
50
50
Grace
Mortgage
Trust
Series
2014-GRCE
Class
A
3.369%
due
06/10/28
(Þ)
393
400
GS
Mortgage
Securities
Corp.
II
Series
2018-SRP5
Class
A
3.281%
due
09/15/31
(Ê)(Þ)
490
489
GS
Mortgage
Securities
Trust
Series
2012-GCJ7
Class
A4
3.377%
due
05/10/45
992
1,009
Series
2013-GC14
Class
AAB
3.817%
due
08/10/46
391
402
Series
2013-GC14
Class
AS
4.507%
due
08/10/46
(Þ)
235
253
Series
2016-GS2
Class
A4
3.050%
due
05/10/49
(Æ)
1,342
1,380
Series
2019-SOHO
Class
A
3.350%
due
06/15/36
(Ê)(Þ)
630
630
Hawaii
Hotel
Trust
Series
2019-MAUI
Class
C
4.044%
due
05/15/38
(Ê)(Þ)
940
941
Hilton
USA
Trust
Series
2016-HHV
Class
D
4.194%
due
11/05/38
(~)(Ê)(Þ)
1,240
1,283
Series
2016-HHV
Class
E
4.194%
due
11/05/38
(~)(Ê)(Þ)
600
607
Series
2016-SFP
Class
A
2.828%
due
11/05/35
(Þ)
226
226
HMH
Trust
Series
2017-NSS
Class
E
6.292%
due
07/05/31
(Þ)
1,170
1,228
Hospitality
Mortgage
Trust
Series
2019-HIT
Class
D
4.394%
due
11/15/26
(Ê)(Þ)
1,495
1,499
IndyMac
Index
Mortgage
Loan
Trust
Series
2006-AR2
Class
1A1A
2.650%
due
04/25/46
(Ê)
749
702
Series
2006-AR2
Class
1A1B
2.696%
due
04/25/46
(Ê)
562
526
Series
2007-FLX3
Class
A1
2.726%
due
06/25/37
(Ê)
216
214
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series
2004-LN2
Class
B
5.462%
due
07/15/41
(~)(Ê)
55
55
Series
2015-MAR7
Class
E
5.962%
due
06/05/32
(Þ)
500
503
Series
2016-NINE
Class
A
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.854%
due
10/06/38
(~)(Ê)(Þ)
394
400
JPMorgan
Mortgage
Trust
Series
2015-3
Class
A5
3.500%
due
05/25/45
(~)(Ê)(Þ)
312
316
Series
2016-4
Class
A5
3.500%
due
10/25/46
(~)(Ê)(Þ)
601
610
Series
2017-2
Class
A5
3.500%
due
05/25/47
(~)(Ê)(Þ)
463
470
Series
2017-2
Class
A6
3.000%
due
05/25/47
(~)(Ê)(Þ)
2,457
2,456
Series
2017-3
Class
1A5
3.500%
due
08/25/47
(~)(Ê)(Þ)
811
823
Series
2017-6
Class
A5
3.500%
due
12/25/48
(~)(Ê)(Þ)
379
385
Series
2018-3
Class
A1
3.500%
due
04/25/48
(~)(Ê)(Þ)
672
677
Series
2018-4
Class
A1
3.500%
due
10/25/48
(~)(Ê)(Þ)
260
263
Series
2018-4
Class
A15
3.500%
due
10/25/48
(~)(Ê)(Þ)
770
779
Series
2018-5
Class
A1
3.500%
due
10/25/48
(~)(Ê)(Þ)
876
885
Series
2018-6
Class
1A4
3.500%
due
12/25/48
(~)(Ê)(Þ)
2,128
2,152
Series
2018-8
Class
A15
4.000%
due
01/25/49
(~)(Ê)(Þ)
555
562
Series
2018-8
Class
A5
4.000%
due
01/25/49
(~)(Ê)(Þ)
2,297
2,339
Series
2018-9
Class
A15
4.000%
due
09/25/48
(~)(Ê)(Þ)
339
343
Series
2019-1
Class
A6
4.000%
due
05/25/49
(~)(Ê)(Þ)
783
791
LB-UBS
Commercial
Mortgage
Trust
Series
2005-C7
Class
F
5.350%
due
11/15/40
(~)(Ê)
232
234
Series
2007-C6
Class
AM
6.114%
due
07/15/40
(~)(Ê)
3
3
LSTAR
Securities
Investment,
Ltd.
Series
2019-4
Class
A1
3.940%
due
05/01/24
(Ê)(Þ)
463
463
ML-CFC
Commercial
Mortgage
Trust
Series
2007-5
Class
AJ
5.450%
due
08/12/48
(~)(Ê)
186
119
Series
2007-5
Class
AJFL
5.450%
due
08/12/48
(~)(Ê)(Þ)
185
119
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2015-C26
Class
A3
3.211%
due
10/15/48
875
902
Series
2016-C31
Class
A1
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
93
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.511%
due
11/15/21
240
238
Morgan
Stanley
Capital
I
Trust
Series
2011-C3
Class
A4
4.118%
due
07/15/49
115
117
Series
2015-MS1
Class
A4
3.779%
due
05/15/48
(~)(Ê)
200
213
Series
2016-UBS9
Class
A4
3.594%
due
03/15/49
205
217
Series
2018-BOP
Class
E
4.423%
due
06/15/35
(Ê)(Þ)
1,732
1,732
Series
2018-SUN
Class
E
4.423%
due
07/15/35
(Ê)(Þ)
1,955
1,965
Series
2019-BPR
Class
A
3.794%
due
05/15/36
(Ê)(Þ)
350
350
Series
2019-PLND
Class
A
3.500%
due
05/15/36
(Ê)(Þ)
1,613
1,613
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
Series
2017-237P
Class
D
3.865%
due
09/13/39
(Þ)
1,500
1,532
Series
2017-237P
Class
XA
Interest
Only
STRIP
0.467%
due
09/13/39
(~)(Ê)(Þ)
8,761
238
Series
2017-237P
Class
XB
Interest
Only
STRIP
0.050%
due
09/13/39
(~)(Ê)(Þ)
5,418
39
MSCG
Trust
Series
2015-ALDR
Class
A2
3.577%
due
06/07/35
(~)(Ê)(Þ)
255
263
Nomura
Resecuritization
Trust
Series
2015-4R
Class
1A14
2.670%
due
03/26/47
(Ê)(Þ)
1,290
965
NYT
Mortgage
Trust
Series
2019-NYT
Class
A
3.594%
due
11/15/35
(Ê)(Þ)
2,451
2,461
One
Market
Plaza
Trust
Series
2017-1MKT
Class
C
4.016%
due
02/10/32
(Þ)
217
226
Series
2017-1MKT
Class
D
4.146%
due
02/10/32
(Þ)
500
519
Series
2017-1MKT
Class
E
4.142%
due
02/10/32
(Þ)
595
607
PMT
Credit
Risk
Transfer
Trust
Series
2019-1R
Class
A
4.479%
due
03/27/24
(Ê)(Þ)
413
413
RBS
Commercial
Funding,
Inc.
Trust
Series
2013-GSP
Class
A
3.834%
due
01/13/32
(~)(Æ)(Ê)(Þ)
200
209
Residential
Accredit
Loans,
Inc.
Series
2006-QO7
Class
2A1
3.247%
due
09/25/46
(Ê)
971
887
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Residential
Asset
Securitization
Trust
Series
2003-A15
Class
1A2
2.936%
due
02/25/34
(Ê)
21
19
Sequoia
Mortgage
Trust
Series
2013-4
Class
A3
1.550%
due
04/25/43
(~)(Ê)
1,543
1,481
Series
2015-1
Class
A1
3.500%
due
01/25/45
(~)(Ê)(Þ)
595
601
Structured
Adjustable
Rate
Mortgage
Loan
Trust
Series
2006-5
Class
3A
4.249%
due
06/25/36
(~)(Ê)
1,261
1,032
Tharaldson
Hotel
Portfolio
Trust
Series
2018-THL
Class
A
3.133%
due
11/11/34
(Ê)(Þ)
243
243
Washington
Mutual
Mortgage
Pass-
Through
Certificates
Trust
Series
2003-AR7
Class
A7
4.148%
due
08/25/33
(~)(Ê)
58
59
Series
2004-AR4
Class
A6
4.124%
due
06/25/34
(~)(Ê)
544
551
Series
2005-10
Class
3CB1
6.000%
due
11/25/35
893
842
Series
2005-AR9
Class
A1A
3.126%
due
07/25/45
(Ê)
309
316
Series
2005-AR11
Class
A1A
2.806%
due
08/25/45
(Ê)
583
586
Series
2006-AR1
Class
2A1A
3.467%
due
01/25/46
(Ê)
391
400
Wells
Fargo
Commercial
Mortgage
Trust
Series
2015-NXS1
Class
A5
3.148%
due
05/15/48
1,864
1,925
Series
2017-RB1
Class
XA
Interest
Only
STRIP
1.288%
due
03/15/50
(~)(Ê)
1,964
156
Wells
Fargo
Mortgage-Backed
Securities
Trust
Series
2004-P
Class
2A1
4.637%
due
09/25/34
(~)(Ê)
95
98
Series
2006-AR2
Class
2A1
4.954%
due
03/25/36
(~)(Ê)
358
368
Series
2006-AR5
Class
1A1
5.079%
due
04/25/36
(~)(Ê)
1,262
1,293
WinWater
Mortgage
Loan
Trust
Series
2014-1
Class
A1
3.874%
due
06/20/44
(~)(Ê)(Þ)
616
627
Worldwide
Plaza
Trust
Series
2017-WWP
Class
A
3.526%
due
11/10/36
(Þ)
452
477
280,321
Municipal
Bonds
-
0.1%
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
94
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Municipal
Electric
Authority
of
Georgia
Revenue
Bonds
6.637%
due
04/01/57
342
411
7.055%
due
04/01/57
323
409
820
Non-US
Bonds
-
4.1%
Argentine
Bonos
del
Tesoro
18.200%
due
10/03/21
ARS
5,600
97
Australia
Government
International
Bond
Series
133
1.087%
due
03/24/23
(Ê)
AUD
1,629
1,335
Series
140
4.500%
due
04/21/33
AUD
176
170
Brazil
Notas
do
Tesouro
Nacional
Series
NTNB
6.000%
due
05/15/45
BRL
276
314
Series
NTNF
1.850%
due
10/02/20
BRL
3,442
1,012
10.000%
due
01/01/21
BRL
4,005
1,101
10.000%
due
01/01/23
BRL
3,238
928
10.000%
due
01/01/27
BRL
165
49
Canadian
Government
International
Bond
0.750%
due
09/01/21
CAD
1,019
767
0.184%
due
12/27/23
(Ê)
CAD
1,593
1,221
0.658%
due
06/01/25
(Ê)
CAD
1,142
913
1.000%
due
06/01/27
CAD
1,250
923
Colombian
TES
Series
B
6.000%
due
04/28/28
COP
2,832,000
885
Indonesia
Treasury
Bond
Series
FR68
5.100%
due
05/15/23
IDR
9,470,000
711
Series
FR77
8.125%
due
05/15/24
IDR
9,012,000
671
Series
FR78
8.250%
due
05/15/29
IDR
12,071,000
906
Japan
10
Year
Government
International
Bond
Series
348
10.000%
due
09/20/27
JPY
119,750
1,142
Malaysia
Government
International
Bond
Series
0111
4.160%
due
07/15/21
MYR
150
37
Series
0114
5.000%
due
06/15/29
MYR
540
135
Series
0116
3.800%
due
08/17/23
MYR
3,100
760
Series
0117
3.882%
due
03/10/22
MYR
428
105
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
0215
3.795%
due
09/30/22
MYR
1,275
312
Series
0218
3.757%
due
04/20/23
MYR
4,616
1,130
Series
0314
3.000%
due
09/30/21
MYR
610
150
Series
0315
3.659%
due
10/15/20
MYR
3,222
784
Series
0517
0.805%
due
02/15/21
MYR
432
105
Series
0613
3.889%
due
07/31/20
MYR
230
56
Mexican
Bonos
Series
M
20
6.000%
due
12/05/24
MXN
8,310
483
7.000%
due
06/03/27
MXN
22,058
1,147
Series
M
30
10.000%
due
11/20/36
MXN
26,257
1,660
8.500%
due
11/18/38
MXN
9,100
507
Series
M
6.500%
due
06/10/21
MXN
740
38
4.500%
due
05/29/31
MXN
2,940
155
3.630%
due
09/29/36
MXN
65,707
3,394
8.000%
due
11/07/47
MXN
4,880
258
Norway
Government
International
Bond
Series
475
0.185%
due
05/24/23
(Þ)
NOK
10,613
1,280
Series
476
3.000%
due
03/14/24
(Þ)
NOK
3,816
482
Series
478
1.500%
due
02/19/26
(Þ)
NOK
1,927
228
Series
479
1.750%
due
02/17/27
(Þ)
NOK
902
109
Series
480
2.000%
due
04/26/28
(Þ)
NOK
1,857
228
Peru
Government
International
Bond
6.900%
due
09/18/20
PEN
2,191
777
4.446%
due
09/25/45
PEN
4,007
1,322
Poland
Government
International
Bond
Series
0725
3.250%
due
07/25/25
PLN
1,427
406
Series
0922
5.750%
due
09/23/22
PLN
2,351
708
Russian
Federal
Bond
-
OFZ
Series
6207
8.150%
due
02/03/27
RUB
48,740
811
Series
6212
7.050%
due
01/19/28
RUB
8,430
132
Series
6219
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
95
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
7.750%
due
09/16/26
RUB
31,660
514
Series
6224
6.900%
due
05/23/29
RUB
19,710
303
Series
6228
7.650%
due
04/10/30
RUB
37,350
605
Singapore
Government
International
Bond
2.000%
due
07/01/20
SGD
464
344
2.250%
due
06/01/21
SGD
963
720
1.250%
due
10/01/21
SGD
250
183
3.125%
due
09/01/22
SGD
569
439
5.250%
due
06/05/23
SGD
874
671
3.000%
due
09/01/24
SGD
1,016
794
2.375%
due
06/01/25
SGD
400
304
2.125%
due
06/01/26
SGD
1,447
1,085
4.500%
due
03/01/27
SGD
1,341
1,102
37,908
United
States
Government
Treasuries
-
21.5%
United
States
Treasury
Inflation
Indexed
Bonds
0.125%
due
04/15/21
10,064
9,969
0.125%
due
01/15/22
926
920
0.375%
due
07/15/23
11,947
12,044
0.375%
due
07/15/25
6,651
6,724
3.375%
due
04/15/32
6,038
8,272
2.125%
due
02/15/40
2,417
3,094
1.375%
due
02/15/44
(Ê)
417
473
1.000%
due
02/15/46
1,003
1,051
0.875%
due
02/15/47
4,313
4,396
1.000%
due
02/15/49
1,980
2,095
United
States
Treasury
Notes
1.375%
due
05/31/21
10,195
10,116
1.125%
due
06/30/21
14,415
14,234
1.625%
due
06/30/21
4,450
4,438
2.520%
due
09/01/21
1,275
1,711
1.750%
due
10/14/21
22,840
22,843
1.250%
due
10/31/21
2,990
2,956
5.300%
due
07/01/22
1,400
1,625
1.250%
due
07/31/23
5,530
5,422
2.250%
due
04/30/24
30
31
2.000%
due
05/31/24
245
248
2.250%
due
11/15/24
1,600
1,637
2.000%
due
02/15/25
4,370
4,412
2.125%
due
05/15/25
3,210
3,262
2.000%
due
08/15/25
4,273
4,312
3.000%
due
10/31/25
800
855
2.250%
due
11/15/25
2,795
2,861
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.625%
due
02/15/26
3,268
3,218
1.625%
due
05/15/26
2,170
2,134
1.500%
due
08/15/26
3,222
3,138
2.375%
due
05/15/27
2,275
2,351
2.250%
due
08/15/27
850
870
2.250%
due
11/15/27
3,230
3,305
2.750%
due
02/15/28
615
654
0.550%
due
08/15/28
837
1,083
2.625%
due
02/15/29
9,530
10,044
2.375%
due
05/15/29
7,360
7,601
3.750%
due
11/15/43
(Ê)
1,775
2,183
3.125%
due
08/15/44
645
719
2.500%
due
02/15/45
1,390
1,383
2.875%
due
08/15/45
4,920
5,253
3.000%
due
11/15/45
1,552
1,696
3.000%
due
05/15/47
1,435
1,570
2.750%
due
08/15/47
1,675
1,746
2.750%
due
11/15/47
2,445
2,549
3.000%
due
02/15/48
4,720
5,163
3.125%
due
05/15/48
160
179
3.000%
due
08/15/48
3,990
4,369
3.000%
due
02/15/49
4,545
4,985
2.875%
due
05/15/49
1,120
1,200
197,394
Total
Long-Term
Investments
(cost
$781,407)
802,693
Common
Stocks
-
0.0%
Financial
Services
-
0.0%
Escrow
GM
Corp.(Š)
80,000
—
Total
Common
Stocks
(cost
$—)
—
Options
Purchased
-
0.0%
(Number
of
Contracts)
Eurodollar
1
Year
Mid-
Curve
Options
Merrill
Lynch
Dec
2019
98.00
Call
(72)
USD
17,640
(ÿ)
90
Total
Options
Purchased
(cost
$29)
90
Short-Term
Investments
-
16.6%
ABB
Treasury
Center,
Inc.
8.350%
due
07/01/19
(Þ)
220
227
Altria
Group,
Inc.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
96
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
9.250%
due
08/06/19
434
437
Ambac
Assurance
Corp.
5.100%
due
06/07/20
(Þ)
1
1
America
Movil
SAB
de
CV
5.000%
due
01/10/20
(Ê)
100
102
American
Express
Credit
Corp.
2.375%
due
05/26/20
80
80
Amgen,
Inc.
2.125%
due
05/01/20
20
20
Anthem,
Inc.
3.700%
due
07/08/19
40
41
Apache
Corp.
4.000%
due
07/08/19
130
127
Argentina
POM
Politica
Monetaria
Series
POM
63.705%
due
06/21/20
(Ê)
ARS
450
11
Athene
Global
Funding
2.750%
due
04/20/20
(Þ)
110
110
Australia
Government
International
Bond
Series
126
4.500%
due
04/15/20
(Ê)
AUD
854
616
BHP
Billiton
Finance
USA,
Ltd.
5.000%
due
05/19/20
170
212
Boeing
Co.
(The)
4.875%
due
05/27/20
(Ê)
100
101
Colombian
Titulos
de
Tesoreria
Series
B
10.000%
due
06/09/20
COP
10,396,200
3,916
Daimler
Finance
NA
LLC
1.750%
due
10/30/19
(Þ)
635
633
2.300%
due
01/06/20
(Þ)
830
829
Delta
Air
Lines
Pass-Through
Trust
Series
2002-1
Class
G-1
1.450%
due
01/22/20
72
77
Devon
Energy
Corp.
0.400%
due
02/18/20
(Ê)
110
112
Exelon
Generation
Co.
LLC
2.100%
due
10/14/19
250
278
Fannie
Mae
4.000%
due
01/01/20
1
1
Federal
Home
Loan
Bank
2.125%
due
02/11/20
70
70
Ford
Motor
Co.
4.750%
due
09/25/19
(Ê)
10
9
Fresenius
Medical
Care
US
Finance
II,
Inc.
4.020%
due
07/14/19
(Þ)
236
252
General
Electric
Co.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
GMTN
5.500%
due
01/08/20
10
10
Georgia
Power
Co.
1.050%
due
07/26/19
250
253
Glencore
Funding
LLC
2.875%
due
04/16/20
(Þ)
20
20
Goldman
Sachs
Group,
Inc.
(The)
Series
D
6.000%
due
06/15/20
150
155
Jackson
National
Life
Global
Funding
2.882%
due
04/27/20
(Ê)(Þ)
2,470
2,473
JPMorgan
Chase
&
Co.
2.750%
due
06/23/20
385
387
Kroger
Co.
(The)
1.400%
due
10/28/19
20
21
Malaysia
Government
International
Bond
Series
0414
4.600%
due
10/31/19
MYR
1,060
257
Series
0902
4.378%
due
11/29/19
(Ê)
MYR
220
54
Mexican
Bonos
Series
M
8.000%
due
06/11/20
MXN
18,400
960
Morgan
Stanley
5.625%
due
09/23/19
200
201
Series
GMTN
3.750%
due
10/31/19
380
397
Navient
Corp.
Series
MTN
8.000%
due
03/25/20
70
72
Northwest
Airlines
Pass-Through
Trust
Series
07-1
7.027%
due
11/01/19
331
336
PacifiCorp
5.750%
due
02/13/20
(Ê)
197
253
Philip
Morris
International,
Inc.
1.875%
due
11/01/19
170
170
2.000%
due
02/21/20
1,105
1,102
Reliance
Standard
Life
Global
Funding
II
2.500%
due
01/15/20
(Þ)
405
405
Reynolds
American,
Inc.
3.250%
due
06/12/20
40
40
Class
B
6.875%
due
05/01/20
190
197
Roche
Holdings,
Inc.
2.430%
due
08/10/19
(Þ)
241
244
Royal
Bank
of
Scotland
Group
PLC
6.400%
due
10/21/19
180
182
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
97
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Santander
PLC
2.375%
due
03/16/20
40
40
Shell
International
Finance
BV
4.375%
due
03/25/20
10
10
Sherwin-Williams
Co.
(The)
2.250%
due
05/15/20
330
329
Sumitomo
Mitsui
Banking
Corp.
2.540%
due
07/29/19
(ç)(ž)
1,880
1,880
Teachers
Insurance
&
Annuity
Association
of
America
4.900%
due
08/01/19
(Þ)
240
281
Telefonica
Emisiones
SA
5.134%
due
04/27/20
40
41
Teva
Pharmaceutical
Finance
Netherlands
III
BV
1.700%
due
07/19/19
30
30
U.S.
Cash
Management
Fund(@)
55,403,600(∞)
55,425
United
States
Treasury
Bills
2.075%
due
08/15/19
(ç)(ž)
4,515
4,503
2.092%
due
09/12/19
(ç)(ž)
4,400
4,382
2.123%
due
10/10/19
(ç)(ž)
4,370
4,344
2.094%
due
11/07/19
(ç)(ž)
4,559
4,525
2.068%
due
12/05/19
(ç)(ž)
5,319
5,272
2.093%
due
12/19/19
(ç)(ž)
23,985
23,752
0.000%
due
01/02/20
(ç)(ž)
6,928
6,856
United
States
Treasury
Inflation
Indexed
Bonds
1.375%
due
01/15/20
7,503
7,487
United
States
Treasury
Notes
0.233%
due
12/31/19
(ž)
5,400
5,394
(0.345)%
due
04/30/20
(ž)
3,995
4,007
0.632%
due
05/31/20
(ž)
7,551
7,507
Westpac
Banking
Corp.
2.300%
due
05/26/20
10
10
Williams
Cos.,
Inc.
(The)
5.250%
due
03/15/20
40
41
6.700%
due
06/24/20
130
171
Total
Short-Term
Investments
(cost
$152,308)
152,738
Total
Investments
104.1%
(identified
cost
$933,744)
955,521
Other
Assets
and
Liabilities,
Net
-
(4.1%)
(37,494)
Net
Assets
-
100.0%
918,027
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
98
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
16.9%
1011778
BC
ULC
/
New
Red
Finance,
Inc.
03/15/19
70,000
99
.09
69
71
A10
Securitization
LLC
06/23/17
961,000
100
.00
961
950
ABB
Treasury
Center,
Inc.
03/05/19
220,000
101
.83
224
227
ABN
AMRO
Bank
NV
03/05/19
227,000
99
.39
226
228
Abu
Dhabi
Government
International
Bond
10/03/17
200,000
99
.78
200
201
ACE
Securities
Corp.
Mortgage
Loan
Trust
03/08/17
560,856
93
.52
525
534
Adani
Abbot
Point
Terminal
Pty,
Ltd.
02/01/19
253,000
88
.86
225
245
Alcoa
Nederland
Holding
BV
09/28/17
200,000
108
.59
217
211
Alimentation
Couche-Tard,
Inc.
09/19/17
220,000
100
.98
222
224
ALROSA
Finance
SA
11/01/18
198,000
104
.49
207
210
Ambac
Assurance
Corp.
02/09/17
881
161
.72
1
1
Ambac
LSNI
LLC
02/09/17
4,296,116
98
.71
4,348
4,367
American
Tower
Trust
#1
01/05/17
270,000
100
.00
270
274
Anglo
American
Capital
PLC
09/06/17
200,000
99
.96
200
204
Apollo
Management
Holdings,
LP
05/24/16
245,000
99
.94
245
257
Apollo
Management
Holdings,
LP
02/26/18
165,000
99
.71
165
171
Apollo
Management
Holdings,
LP
03/08/18
305,000
99
.52
304
320
Applebee's
Funding
LLC
/
IHOP
Funding
LLC
05/28/19
340,000
100
.00
340
344
Athene
Global
Funding
04/17/17
110,000
99
.95
110
110
Athene
Global
Funding
06/12/19
225,000
100
.72
227
228
Avis
Budget
Rental
Car
Funding LLC
04/16/19
600,000
100
.41
602
618
Banco
de
Bogota
SA
09/22/17
223,000
100
.84
225
229
Bangkok
Bank
PCL
11/09/18
219,000
99
.34
218
227
Banistmo
SA
12/07/17
250,000
100
.35
251
251
Basell
Finance
Co.
BV
02/15/19
186,000
120
.20
224
236
Bausch
Health
Cos.,
Inc.
12/04/17
50,000
101
.20
51
56
Bayer
US
Finance
II
LLC
06/19/18
624,000
100
.08
625
632
Bayer
US
Finance
II
LLC
08/14/18
370,000
89
.18
330
336
Bayer
US
Finance
LLC
06/18/18
643,000
96
.89
623
646
Bayview
Commercial
Asset
Trust
10/26/17
1,031,014
95
.91
989
979
BBVA
Bancomer
SA
06/03/19
258,000
104
.55
270
271
BCAP
LLC
Trust
11/26/13
75,396
103
.53
78
77
BCAP
LLC
Trust
03/10/14
17,911
104
.30
19
18
BCAP
LLC
Trust
07/21/16
855,585
74
.89
641
790
BCAP
LLC
Trust
03/20/17
655,350
85
.44
560
628
BCAP
LLC
Trust
03/20/17
1,039,916
85
.46
889
997
Beacon
Escrow
Corp.
10/30/17
20,000
101
.13
20
20
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
11/04/16
891,938
99
.72
889
885
Blackstone
Commercial
Mortgage
Trust
03/02/18
1,575,000
99
.44
1,566
1,581
Blue
Racer
Midstream
LLC
/
Blue
Racer
Finance
Corp.
02/25/19
30,000
102
.06
31
30
BMW
US
Capital
LLC
03/20/18
20,000
97
.14
19
20
BMW
US
Capital
LLC
05/01/19
266,000
100
.65
268
268
BNP
Paribas
SA
05/29/18
200,000
95
.06
190
206
BNP
Paribas
SA
08/07/18
200,000
99
.50
199
217
BNP
Paribas
SA
01/03/19
260,000
100
.00
260
279
BNP
Paribas
SA
01/03/19
400,000
100
.38
402
458
Braskem
Netherlands
Finance
BV
10/04/17
285,000
99
.35
283
286
Bristol-Myers
Squibb
05/07/19
190,000
100
.13
190
197
Bristol-Myers
Squibb
05/07/19
455,000
99
.18
451
476
Bristol-Myers
Squibb
05/07/19
530,000
99
.62
528
541
Bristol-Myers
Squibb
05/07/19
90,000
99
.74
90
91
Broadcom,
Inc.
03/29/19
385,000
99
.28
382
390
Broadcom,
Inc.
03/29/19
365,000
99
.90
365
367
Broadcom,
Inc.
06/18/19
250,000
100
.36
251
256
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
99
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
BX
Commercial
Mortgage
Trust
03/05/19
154,304
100
.49
155
155
BX
Commercial
Mortgage
Trust
04/18/19
790,000
100
.06
790
790
BX
Trust
06/01/18
1,650,000
100
.00
1,650
1,651
BXP
Trust
10/30/17
818,000
100
.74
824
856
CAL
Funding
III,
Ltd.
06/28/17
632,800
99
.99
633
647
CAMB
Commercial
Mortgage
Trust
01/25/19
1,651,000
100
.00
1,651
1,668
CAMB
Commercial
Mortgage
Trust
01/25/19
987,000
100
.14
988
996
Canadian
Oil
Sands,
Ltd.
04/25/16
680,000
99
.60
677
704
Cantor
Fitzgerald,
LP
04/24/19
360,000
99
.71
359
371
Capital
Auto
Receivables
Asset
Trust
09/10/18
15,114
99
.95
15
15
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
04/13/15
50,000
100
.00
50
51
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
06/13/16
110,000
101
.36
111
114
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
08/14/18
20,000
95
.51
19
21
Cedar
Funding,
Ltd.
07/03/18
1,600,000
100
.00
1,599
1,591
Centene
Corp.
08/24/18
20,000
103
.29
21
21
Cigna
Corp.
09/06/18
60,000
100
.00
60
61
Cigna
Corp.
09/06/18
260,000
100
.88
262
280
Cigna
Corp.
09/06/18
295,000
101
.26
298
313
Cigna
Corp.
09/06/18
1,950,000
99
.95
1,948
1,969
Cigna
Corp.
09/06/18
150,000
99
.96
150
156
Citigroup
Commercial
Mortgage
Trust
01/12/17
170,000
102
.62
174
175
Citigroup
Commercial
Mortgage
Trust
02/12/19
1,418,000
0
.99
1,401
1,435
Citigroup
Commercial
Mortgage
Trust
02/21/19
430,000
100
.00
430
430
Citigroup
Mortgage
Loan
Trust,
Inc.
02/01/17
201,558
97
.74
197
202
CK
Hutchison
International
(17)
(II),
Ltd.
01/02/19
225,000
98
.77
222
224
Commercial
Mortgage
Trust
01/22/16
195,000
1
.06
207
209
Commercial
Mortgage
Trust
02/17/16
205,000
103
.80
213
217
Commercial
Mortgage
Trust
07/25/16
140,000
102
.35
143
141
Commercial
Mortgage
Trust
11/21/16
211,000
100
.82
213
212
Commercial
Mortgage
Trust
06/05/19
1,203,000
100
.00
1,203
1,204
Commercial
Mortgage
Trust
06/05/19
899,000
100
.00
899
900
Commonwealth
Bank
of
Australia
06/14/16
30,000
100
.96
30
30
Commonwealth
Bank
of
Australia
07/06/17
30,000
99
.64
30
32
CommScope
Technologies
LLC
03/02/17
30,000
100
.00
30
26
Core
Industrial
Trust
03/01/19
1,520,000
100
.00
1,520
1,522
Cott
Holdings,
Inc.
03/08/17
60,000
100
.00
60
61
Cox
Communications,
Inc.
05/31/17
435,000
107
.97
470
509
Cox
Communications,
Inc.
05/15/18
290,000
97
.84
284
296
Credit
Suisse
Mortgage
Capital
Certificates
06/20/17
600,000
99
.56
597
599
Credit
Suisse
Mortgage
Capital
Certificates
05/28/19
940,000
100
.00
940
941
Credit
Suisse
Mortgage
Capital
Certificates
05/28/19
1,282,000
100
.00
1,282
1,286
Credit
Suisse
Mortgage
Trust
06/26/18
1,173,176
97
.63
1,145
1,173
Credit
Suisse
Mortgage
Trust
09/19/18
200,000
100
.00
200
200
DAE
Funding
LLC
11/01/18
40,000
100
.00
40
42
Daimler
Finance
NA
LLC
10/26/16
635,000
99
.96
635
633
Daimler
Finance
NA
LLC
01/03/17
830,000
99
.99
830
829
Daimler
Finance
NA
LLC
04/30/18
1,285,000
99
.93
1,283
1,303
Danone
SA
10/26/16
690,000
100
.00
690
685
Danone
SA
04/22/19
270,000
97
.89
264
271
Danske
Bank
A/S
01/11/19
200,000
99
.76
200
209
Danske
Bank
A/S
03/11/19
450,000
104
.12
469
486
DBGS
Mortgage
Trust
04/03/19
985,000
101
.44
999
1,041
Dell
International
LLC
/
EMC
Corp.
05/17/16
280,000
100
.89
283
288
Dell
International
LLC
/
EMC
Corp.
10/06/16
285,000
120
.49
343
360
Dell
International
LLC
/
EMC
Corp.
10/18/16
100,000
107
.71
108
106
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
100
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
Deutsche
Mortgage
Securities,
Inc.
Re-REMIC
Trust
01/04/17
468,387
100
.64
471
479
Deutsche
Telekom
International
Finance
BV
05/02/18
251,000
97
.03
244
248
Diamond
1
Finance
Corp.
/
Diamond
2
Finance
Corp
03/06/18
155,000
121
.08
188
190
Dividend
Solar
Loans
LLC
06/28/19
390,000
99
.98
390
390
Dryden
50
Senior
Loan
Fund
07/24/17
1,230,000
100
.00
1,229
1,228
ECAF,
Ltd.
08/09/18
321,032
99
.22
319
323
Ecuador
Government
International
Bond
01/18/18
200,000
100
.00
200
198
EMD
Finance
LLC
04/22/19
272,000
98
.15
267
278
Empresa
Electrica
Angamos
SA
09/22/17
190,421
102
.19
195
199
Enel
Finance
International
NV
01/05/18
250,000
98
.08
245
246
Enel
Finance
International
NV
09/11/18
810,000
99
.43
805
869
Eni
SpA
09/05/18
470,000
99
.54
468
490
Equate
Petrochemical
BV
10/27/16
200,000
99
.06
198
209
Farmers
Exchange
Capital
III
06/29/15
220,000
97
.88
215
238
FDIC
Trust
06/08/12
37,561
103
.66
39
38
First
Data
Corp.
06/13/16
140,000
101
.58
142
143
Flagstar
Mortgage
Trust
10/26/17
903,174
101
.42
916
916
Flagstar
Mortgage
Trust
04/13/18
525,457
98
.60
518
530
Fox
Corp.
01/15/19
60,000
100
.00
60
64
Fox
Corp.
01/15/19
110,000
101
.26
111
123
Fox
Corp.
01/17/19
110,000
105
.90
116
130
Fresenius
Medical
Care
US
Finance
II,
Inc.
06/16/16
110,000
103
.04
113
117
Fresenius
Medical
Care
US
Finance
II,
Inc.
09/19/17
236,000
107
.56
254
252
Gazprom
OAO
Via
Gaz
Capital
SA
02/01/19
209,000
105
.05
220
226
Glencore
Funding
LLC
10/12/16
40,000
101
.19
40
42
Glencore
Funding
LLC
09/13/17
250,000
100
.64
252
252
Glencore
Funding
LLC
03/21/18
20,000
99
.72
20
20
Glencore
Funding
LLC
01/16/19
60,000
94
.09
56
60
Glencore
Funding
LLC
03/05/19
330,000
100
.02
330
342
Goldentree
Loan
Management
US
CLO
2,
Ltd.
10/26/18
1,860,000
100
.04
1,860
1,859
Grace
Mortgage
Trust
05/19/17
393,000
103
.43
406
400
GS
Mortgage
Securities
Corp.
II
06/06/18
490,000
100
.00
490
489
GS
Mortgage
Securities
Trust
07/20/16
235,000
112
.15
264
253
GS
Mortgage
Securities
Trust
05/31/19
630,000
100
.00
630
630
Hanesbrands,
Inc.
08/10/18
10,000
97
.95
10
10
Hanesbrands,
Inc.
08/13/18
30,000
96
.71
29
31
Hawaii
Hotel
Trust
05/16/19
940,000
100
.00
940
941
Hertz
Vehicle
Financing
II,
LP
01/10/19
785,000
98
.12
770
785
Hertz
Vehicle
Financing
II,
LP
01/29/19
935,000
100
.06
936
959
Hilton
USA
Trust
11/22/16
1,840,000
88
.78
1,674
1,890
Hilton
USA
Trust
05/26/17
226,000
99
.70
225
226
HMH
Trust
06/09/17
1,170,000
99
.99
1,170
1,228
Horizon
Aircraft
Finance
I,
Ltd.
11/16/18
877,600
100
.00
878
909
Hospitality
Mortgage
Trust
05/16/19
1,495,000
100
.00
1,495
1,499
Hyundai
Capital
America
01/02/19
224,000
98
.98
222
224
ICICI
Bank,
Ltd.
09/06/18
252,000
94
.63
238
257
ING
Bank
NV
04/28/17
735,000
108
.25
796
813
Intesa
Sanpaolo
SpA
07/10/17
200,000
99
.90
200
198
Intesa
Sanpaolo
SpA
01/05/18
200,000
99
.81
200
199
Intesa
Sanpaolo
SpA
04/22/19
287,000
91
.89
264
274
Inversiones
CMPC
SA
09/22/17
214,000
103
.44
221
221
Jackson
National
Life
Global
Funding
04/23/18
2,470,000
100
.00
2,470
2,473
JBS
Investments
GmbH
02/08/17
445,000
98
.85
440
454
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
08/04/16
500,000
97
.77
489
503
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
10/30/17
394,000
98
.87
390
400
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
101
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
JPMorgan
Mortgage
Trust
03/30/17
311,680
102
.59
320
316
JPMorgan
Mortgage
Trust
05/22/17
463,163
102
.48
475
470
JPMorgan
Mortgage
Trust
08/09/17
810,737
102
.63
832
823
JPMorgan
Mortgage
Trust
10/26/17
600,894
101
.08
607
610
JPMorgan
Mortgage
Trust
03/23/18
671,584
98
.60
662
677
JPMorgan
Mortgage
Trust
04/25/18
1,904,935
98
.84
1,888
1,927
JPMorgan
Mortgage
Trust
08/16/18
2,852,870
100
.50
2,863
2,901
JPMorgan
Mortgage
Trust
09/20/18
339,289
100
.55
341
343
JPMorgan
Mortgage
Trust
01/18/19
782,656
100
.71
788
791
JPMorgan
Mortgage
Trust
03/06/19
2,507,221
100
.44
2,510
2,537
JPMorgan
Mortgage
Trust
03/08/19
2,457,294
98
.05
2,409
2,456
KazMunayGas
National
Co.
JSC
04/17/18
200,000
100
.00
200
221
KKR
Group
Finance
Co.
II
LLC
02/20/15
10,000
109
.82
11
12
KKR
Group
Finance
Co.
III
LLC
03/11/15
175,000
100
.35
176
194
Korea
Southern
Power
Co.,
Ltd.
05/02/18
241,000
99
.30
239
243
Kraft
Heinz
Foods
Co.
08/05/15
565,000
104
.24
587
582
Kuwait
Government
International
Bond
03/13/17
210,000
99
.22
208
224
Lamb
Weston
Holdings,
Inc.
12/01/16
60,000
99
.71
60
62
Land
O'
Lakes,
Inc.
06/22/16
320,000
103
.68
332
335
LCM
XXII,
Ltd.
07/05/17
1,133,000
101
.25
1,147
1,136
LCM
XXIII,
Ltd.
04/18/19
1,020,000
100
.31
1,023
1,024
LCM
XXV,
Ltd.
07/10/17
1,124,000
100
.00
1,124
1,122
Legacy
Mortgage
Asset
Trust
05/23/19
467,394
100
.00
467
471
Lloyds
TSB
Bank
PLC
12/07/17
228,000
104
.36
238
238
LSTAR
Securities
Investment,
Ltd.
05/17/19
463,298
100
.00
463
463
Lukoil
International
Finance
BV
03/22/17
450,000
103
.61
466
468
Lukoil
International
Finance
BV
09/19/17
212,000
103
.24
219
220
Madison
Park
Funding
XVIII,
Ltd.
12/01/17
872,000
100
.71
878
871
Madison
Park
Funding
XXVI,
Ltd.
09/05/17
780,000
100
.00
780
780
Magnetite
XVIII,
Ltd.
10/31/18
1,488,000
100
.00
1,487
1,486
Marks
And
Spencer
PLC
11/06/17
207,000
117
.34
243
231
Mars,
Inc.
03/26/19
205,000
99
.71
204
213
Mars,
Inc.
03/26/19
60,000
99
.94
60
61
MassMutual
Global
Funding
II
09/19/17
1,155,000
99
.95
1,153
1,152
Metropolitan
Life
Global
Funding
I
04/04/18
1,510,000
99
.78
1,506
1,511
Mexico
Generadora
de
Energia
S
de
RL
09/22/17
14
106
.51
—
—
Midwest
Connector
Capital
Co.
LLC
06/04/19
267,000
101
.97
272
273
ML-CFC
Commercial
Mortgage
Trust
08/05/16
185,188
82
.07
152
119
Morgan
Stanley
Capital
I
Trust
07/19/18
1,955,000
100
.00
1,955
1,965
Morgan
Stanley
Capital
I
Trust
08/15/18
1,732,000
100
.00
1,732
1,732
Morgan
Stanley
Capital
I
Trust
04/24/19
350,000
100
.00
350
350
Morgan
Stanley
Capital
I
Trust
05/10/19
1,613,000
100
.00
1,613
1,613
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
5,418,000
0
.73
39
39
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
8,761,000
2
.71
238
238
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
1,500,000
97
.18
1,458
1,532
MSCG
Trust
05/19/15
255,000
101
.45
259
263
Mutual
of
Omaha
Insurance
Co.
07/14/14
205,000
99
.56
204
209
Myriad
International
Holdings
BV
06/29/17
250,000
100
.00
250
267
Myriad
International
Holdings
BV
09/21/17
206,000
103
.29
213
212
NCL
Corp.,
Ltd.
12/07/16
24,000
100
.19
24
24
Nestle
Holdings,
Inc.
04/22/19
264,000
100
.91
266
269
New
Gold,
Inc.
10/22/18
235,000
88
.94
209
219
Nomura
Resecuritization
Trust
07/22/16
1,290,000
58
.70
757
965
Nordea
Bank
AB
06/04/19
265,000
103
.54
274
275
Northern
Natural
Gas
Co.
08/02/18
246,000
97
.98
241
267
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
102
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
Northern
Natural
Gas
Co.
03/28/19
65,000
102
.27
66
67
Norway
Government
International
Bond
01/18/19
NOK
1,927,000
11
.50
222
228
Norway
Government
International
Bond
01/18/19
NOK
902,000
11
.72
106
109
Norway
Government
International
Bond
01/18/19
NOK
1,857,000
11
.81
219
228
Norway
Government
International
Bond
01/18/19
NOK
10,613,000
11
.89
1,262
1,280
Norway
Government
International
Bond
01/18/19
NOK
3,816,000
12
.48
476
482
NOVA
Chemicals
Corp.
08/22/17
340,000
99
.04
337
362
NXP
BV
/
NXP
Funding
LLC
05/02/19
254,000
103
.66
263
266
NYT
Mortgage
Trust
01/11/19
2,451,000
100
.00
2,451
2,461
One
Market
Plaza
Trust
02/15/17
500,000
100
.03
500
519
One
Market
Plaza
Trust
02/15/17
217,000
102
.87
223
226
One
Market
Plaza
Trust
02/15/17
595,000
97
.83
582
607
Ontario
Teachers'
Cadillac
Fairview
Properties
Trust
01/28/19
265,000
99
.87
265
288
Pacific
Life
Insurance
Co.
10/17/17
120,000
99
.92
120
118
Park
Aerospace
Holdings,
Ltd.
02/25/19
50,000
102
.23
51
53
Pernod
Ricard
SA
06/13/16
150,000
104
.74
157
157
PMT
Credit
Risk
Transfer
Trust
03/21/19
412,910
100
.00
413
413
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
10/18/16
35,000
105
.58
37
37
Provincia
de
Buenos
Aires
02/08/17
140,000
99
.73
140
117
RBS
Commercial
Funding,
Inc.
Trust
01/19/16
200,000
1
.04
208
209
Reliance
Holding
USA,
Inc.
12/08/17
231,000
102
.29
236
236
Reliance
Standard
Life
Global
Funding
II
01/07/15
405,000
99
.83
405
405
Riserva
CLO
Ltd.
06/10/19
940,000
100
.00
940
940
Roche
Holdings,
Inc.
01/05/18
241,000
100
.83
243
244
Rockies
Express
Pipeline
LLC
04/03/19
185,000
99
.96
185
192
Sabal
Trail
Transmission
LLC
08/02/18
239,000
100
.43
240
255
Santander
UK
Group
Holdings
PLC
03/05/19
226,000
98
.19
222
234
Santander
UK
PLC
05/14/19
255,000
103
.93
265
269
Saudi
Arabian
Oil
Co.
04/09/19
200,000
99
.52
199
202
Schlumberger
Holdings
Corp.
12/10/15
40,000
99
.96
40
42
Schlumberger
Norge
AS
06/13/16
70,000
103
.16
72
72
Schneider
Electric
SE
02/04/19
200,000
98
.53
197
203
Sequoia
Mortgage
Trust
10/21/16
594,939
103
.09
613
601
Shackleton
CLO,
Ltd.
04/04/18
930,000
100
.00
930
919
Siemens
Financieringsmaatschappij
NV
03/05/19
250,000
97
.28
243
247
Sky,
Ltd.
12/12/18
290,000
98
.71
286
308
SMB
Private
Education
Loan
Trust
06/04/19
190,000
100
.00
190
190
Smithfield
Foods,
Inc.
03/27/19
280,000
99
.68
279
305
SoFi
Professional
Loan
Program
LLC
05/15/18
207,444
99
.34
206
208
SoFi
Professional
Loan
Program
LLC
05/16/18
565,348
99
.56
563
567
SoFi
Professional
Loan
Program
LLC
05/23/18
221,775
98
.81
219
221
SoFi
Professional
Loan
Program
LLC
07/24/18
1,474,000
97
.56
1,438
1,489
SoFi
Professional
Loan
Program
LLC
07/24/18
1,474,000
97
.78
1,441
1,498
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
03/14/18
1,060,000
100
.09
1,060
1,100
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
03/15/18
112,500
99
.81
112
113
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
05/23/19
200,000
102
.48
205
206
Suzano
Austria
GmbH
07/27/18
160,000
107
.20
172
182
Suzano
Austria
GmbH
09/17/18
230,000
99
.12
228
251
Takeda
Pharmaceutical
Co.,
Ltd.
11/19/18
230,000
99
.60
229
260
Takeda
Pharmaceutical
Co.,
Ltd.
11/19/18
165,000
99
.96
165
177
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
01/10/19
30,000
100
.00
30
33
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
01/10/19
30,000
100
.00
30
33
Teachers
Insurance
&
Annuity
Association
of
America
06/14/16
240,000
112
.66
270
281
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
103
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
Textainer
Marine
Containers,
Ltd.
05/11/17
803,998
100
.00
804
815
Tharaldson
Hotel
Portfolio
Trust
01/22/18
243,024
99
.94
243
243
THL
Credit
Wind
River
CLO,
Ltd.
10/02/17
1,016,000
100
.00
1,016
1,011
Towd
Point
Mortgage
Trust
07/22/16
246,681
99
.86
246
245
Towd
Point
Mortgage
Trust
05/05/17
485,582
100
.32
487
486
Towd
Point
Mortgage
Trust
07/07/17
510,779
100
.55
514
512
Towd
Point
Mortgage
Trust
08/04/17
643,164
100
.34
645
646
Towd
Point
Mortgage
Trust
09/18/17
1,064,789
100
.61
1,071
1,069
Transocean
Sentry
Ltd.
05/15/19
245,000
99
.43
244
245
Triton
Container
Finance
IV
LLC
08/16/17
545,203
100
.08
546
552
Triton
Container
Finance
V
LLC
03/13/18
217,000
99
.98
217
222
Triton
Container
Finance
VI
LLC
06/07/17
608,475
99
.04
603
618
Trust
F/1401
09/20/17
212,000
105
.40
223
222
UBS
AG
11/27/17
780,000
99
.96
780
780
UBS
Group
Funding
Switzerland
AG
03/16/17
200,000
100
.00
200
215
UBS
Group
Funding
Switzerland
AG
03/16/17
270,000
100
.00
270
277
UBS
Group
Funding
Switzerland
AG
01/28/19
460,000
100
.22
461
488
UniCredit
SpA
01/08/19
370,000
100
.00
370
393
Universal
Health
Services,
Inc.
09/19/17
216,000
102
.56
222
218
Univision
Communications,
Inc.
06/19/15
50,000
99
.73
50
49
Univision
Communications,
Inc.
06/15/16
60,000
98
.98
59
57
Valeant
Pharmaceuticals
International,
Inc.
04/04/19
40,000
109
.87
44
45
Verizon
Communications,
Inc.
09/05/18
239,000
98
.76
236
259
Vistra
Operations
Co.
LLC
06/04/19
290,000
99
.78
289
294
Vistra
Operations
Co.
LLC
06/04/19
370,000
99
.81
369
372
VOC
Escrow,
Ltd.
08/07/18
60,000
97
.04
58
61
VOLT
LXII
LLC
05/16/19
2,326,142
99
.91
2,324
2,333
Voya
CLO,
Ltd.
03/31/17
1,428,000
100
.07
1,428
1,427
Walt
Disney
Co.
(The)
03/15/19
40,000
136
.10
54
57
Walt
Disney
Co.
(The)
03/15/19
185,000
137
.10
254
272
WinWater
Mortgage
Loan
Trust
03/29/17
615,722
102
.49
631
627
Woori
Bank
12/07/17
232,000
104
.70
243
245
Worldwide
Plaza
Trust
10/31/17
452,000
102
.76
464
477
XPO
Logistics,
Inc.
02/25/19
30,000
101
.74
31
31
155,183
For
a
description
of
restricted
securities
see
note
7
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
104
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
1011778
B.C.
Unlimited
Liability
Co.
1st
Lien
Term
Loan
B4
USD
1
Month
LIBOR
2.250
ACE
Securities
Corp.
Home
Equity
Loan
Trust
USD
1
Month
LIBOR
0.675
Air
Medical
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
3.250
Albertson's
LLC
1st
Lien
Term
Loan
B7
USD
1
Month
LIBOR
3.000
Albertson's
LLC
Term
Loan
B6
USD
1
Month
LIBOR
3.000
Ambac
LSNI
LLC
USD
3
Month
LIBOR
10.000
American
Axle
&
Manufacturing,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.250
American
Home
Mortgage
Investment
Trust
USD
6
Month
LIBOR
2.000
Ameriquest
Mortgage
Securities,
Inc.
Asset-Backed
Pass-Through
Certificates
USD
1
Month
LIBOR
1.110
Aramark
Services,
Inc.
1st
Lien
Term
Loan
B3
USD
3
Month
LIBOR
1.750
Argentina
POM
Politica
Monetaria
Argentina
Blended
Historical
Policy
Rate
0.000
Asurion
LLC
1st
Lien
Term
Loan
B7
USD
1
Month
LIBOR
3.000
Asurion
LLC
Term
Loan
B4
USD
1
Month
LIBOR
3.000
Atlantic
Aviation
FBO,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
3.750
Avolon
LLC
1st
Lien
Term
Loan
B3
USD
1
Month
LIBOR
1.750
BAC
Capital
Trust
XIV
USD
3
Month
LIBOR
0.400
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.040
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.780
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.210
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.520
Bank
of
America
Corp.
USD
3
Month
LIBOR
2.931
Bank
of
America
Corp.
USD
3
Month
LIBOR
3.898
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.630
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.810
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.310
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.790
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.370
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.060
Bank
of
Montreal
USD
Swap
Semiannual
30/360
(versus
3
Month
LIBOR)
5
Year
Rate
1.432
Barclays
PLC
USD
3
Month
LIBOR
1.356
Barclays
PLC
USD
3
Month
LIBOR
1.902
Bayview
Commercial
Asset
Trust
USD
1
Month
LIBOR
0.270
BCAP
LLC
Trust
USD
1
Month
LIBOR
0.000
BCP
CC
Holdings
Merger
Sub,
Inc.
Term
Loan
B1
USD
3
Month
LIBOR
2.750
Bear
Stearns
ALT-A
Trust
USD
1
Month
LIBOR
0.750
Berry
Plastics
Group,
Inc.
1st
Lien
Term
Loan
Q
USD
1
Month
LIBOR
2.000
Blackstone
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
1.951
Blackstone
CQP
Hodco,
LP
Term
Loan
B
USD
3
Month
LIBOR
3.500
BNC
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.160
BNP
Paribas
SA
USD
Swap
Semiannual
30/360
(versus
3
Month
LIBOR)
5
Year
Rate
1.483
BNP
Paribas
SA
USD
3
Month
LIBOR
2.235
BNP
Paribas
SA
USD
3
Month
LIBOR
2.567
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
105
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Boyd
Gaming
Corp.
Term
Loan
B
USD
1
Week
LIBOR
2.250
Brickman
Group,
Ltd.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.500
Brookfield
WEC
Holdings,
Inc.
Term
Loan
USD
1
Month
LIBOR
3.500
BX
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
2.050
BX
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
1.321
BX
Trust
USD
1
Month
LIBOR
1.220
Caesars
Resort
Collection
LLC
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.750
CAMB
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
2.550
CAMB
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
3.250
Campbell
Soup
Co.
USD
3
Month
LIBOR
0.630
Cedar
Funding,
Ltd.
USD
3
Month
LIBOR
1.100
Change
Healthcare
Holdings
LLC
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.750
Charter
Communications
Operating
LLC
1st
Lien
Term
Loan
B
USD
3
Month
LIBOR
2.000
CHL
Mortgage
Pass-Through
Trust
USD
1
Month
LIBOR
0.580
Citigroup
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
2.500
Citigroup
Mortgage
Loan
Trust,
Inc.
USD
1
Month
LIBOR
0.450
Citigroup
Mortgage
Loan
Trust,
Inc.
USD
1
Month
LIBOR
0.250
Citigroup
Mortgage
Loan
Trust,
Inc.
U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
2.400
Citigroup,
Inc.
USD
3
Month
LIBOR
3.905
CityCenter
Holdings
LLC
Term
Loan
B
USD
1
Month
LIBOR
2.250
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
1.550
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
0.900
Core
Industrial
Trust
USD
1
Month
LIBOR
1.650
Countrywide
Alternative
Loan
Trust
USD
1
Month
LIBOR
0.400
Countrywide
Asset-Backed
Certificates
USD
1
Month
LIBOR
0.800
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
5.620
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
2.150
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
0.980
Credit
Suisse
Mortgage
Trust
USD
1
Month
LIBOR
3.231
CWGS
Group
LLC
Term
Loan
USD
1
Month
LIBOR
2.750
Dell
International
LLC
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.000
Digicert
Holdings,
Inc.
1st
Lien
Term
Loan
USD
1
Month
LIBOR
4.000
Dryden
50
Senior
Loan
Fund
USD
3
Month
LIBOR
1.220
Edelman
Financial
Center
LLC
Term
Loan
B1
USD
1
Month
LIBOR
3.250
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
2.600
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
3.000
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
4.900
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
4.250
Fannie
Mae
REMICS
USD
1
Month
LIBOR
5.950
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
6.000
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
106
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.500
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.200
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.100
Farmers
Exchange
Capital
III
USD
3
Month
LIBOR
3.454
Fieldstone
Mortgage
Investment
Trust
USD
1
Month
LIBOR
1.950
First
Data
Corp.
1st
Lien
Term
Loan
USD
1
Month
LIBOR
2.000
First
Data
Corp.
Term
Loan
USD
1
Month
LIBOR
2.000
Focus
Financial
Partners
LLC
1st
Lien
Term
Loan
B2
USD
1
Month
LIBOR
2.500
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
3.450
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
3.700
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
3.750
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
4.700
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
2.800
Ginnie
Mae
REMICS
USD
1
Month
LIBOR
6.150
Ginnie
Mae
REMICS
USD
1
Month
LIBOR
6.050
Golden
Nugget,
Inc.
1st
Lien
Term
Loan
B
USD
3
Month
LIBOR
1.750
Goldentree
Loan
Management
US
CLO
2,
Ltd.
USD
3
Month
LIBOR
1.150
Goldman
Sachs
Capital
II
USD
3
Month
LIBOR
0.768
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.301
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.430
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.201
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.510
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.158
Greenpoint
Manufactured
Housing
Contract
Trust
USD
1
Month
LIBOR
2.000
GS
Mortgage
Securities
Corp.
II
USD
1
Month
LIBOR
1.300
GS
Mortgage
Securities
Trust
USD
1
Month
LIBOR
0.900
Hawaii
Hotel
Trust
USD
1
Month
LIBOR
1.650
HCA,
Inc.
Term
Loan
B10
USD
3
Month
LIBOR
2.000
Hilton
Worldwide
Finance
LLC
Term
Loan
B2
USD
1
Month
LIBOR
1.750
Home
Equity
Asset
Trust
USD
1
Month
LIBOR
0.150
Home
Equity
Asset
Trust
USD
1
Month
LIBOR
0.280
Home
Equity
Asset
Trust
USD
1
Month
LIBOR
0.410
Hospitality
Mortgage
Trust
USD
1
Month
LIBOR
2.000
HSBC
Holdings
PLC
USD
ICE
Swap
Rate
NY
5
Year
Rate
3.606
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.610
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.535
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.546
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
107
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
HSBC
Holdings
PLC
USD
ICE
Swap
Rate
NY
5
Year
Rate
3.453
HSI
Asset
Securitization
Corp.
Trust
USD
1
Month
LIBOR
0.140
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.220
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.210
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.240
Intelsat
Jackson
Holdings
SA
Term
Loan
B3
USD
1
Month
LIBOR
3.750
Intrawest
Resorts
Holdings,
Inc.
1st
Lien
Term
Loan
B1
USD
1
Month
LIBOR
3.000
Jackson
National
Life
Global
Funding
USD
3
Month
LIBOR
0.300
Jaguar
Holding
Co.
II
1st
Lien
Term
Loan
USD
1
Month
LIBOR
2.500
Jane
Street
Group
LLC
USD
1
Month
LIBOR
3.000
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
2.660
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
1.000
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
0.550
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
1.260
LCM
XXII,
Ltd.
USD
3
Month
LIBOR
1.480
LCM
XXIII,
Ltd.
USD
3
Month
LIBOR
1.400
LCM
XXV,
Ltd.
USD
3
Month
LIBOR
1.210
Level
3
Financing,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
2.250
Long
Beach
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.750
Long
Beach
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.900
LPL
Holdings,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
2.250
LSTAR
Securities
Investment,
Ltd.
USD
1
Month
LIBOR
1.500
MA
Finance
Co.
LLC
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.500
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
1.080
Mastr
Asset
Backed
Securities
Trust
USD
1
Month
LIBOR
0.945
McAfee
LLC
Term
Loan
B1
USD
1
Month
LIBOR
3.750
Merrill
Lynch
Mortgage
Investors
Trust
USD
1
Month
LIBOR
0.370
Metropolitan
Life
Global
Funding
I
USD
3
Month
LIBOR
0.230
MGM
Growth
Properties
LLC
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.000
Michaels
Stores,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.500
Morgan
Stanley
USD
3
Month
LIBOR
1.400
Morgan
Stanley
USD
3
Month
LIBOR
1.140
Morgan
Stanley
USD
3
Month
LIBOR
0.847
Morgan
Stanley
USD
3
Month
LIBOR
3.256
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.950
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.000
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.950
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.400
MultiPlan,
Inc.
Term
Loan
B
USD
3
Month
LIBOR
2.750
Mutual
of
Omaha
Insurance
Co.
USD
3
Month
LIBOR
2.640
Navient
Student
Loan
Trust
USD
1
Month
LIBOR
0.600
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
108
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Nelnet
Student
Loan
Trust
USD
3
Month
LIBOR
1.650
New
Century
Home
Equity
Loan
Trust
USD
1
Month
LIBOR
0.480
Nomura
Resecuritization
Trust
USD
1
Month
LIBOR
0.190
Numericable
Group
SA
Term
Loan
B12
USD
1
Month
LIBOR
3.688
NYT
Mortgage
Trust
USD
1
Month
LIBOR
1.200
Option
One
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.780
Pacific
Life
Insurance
Co.
USD
3
Month
LIBOR
2.796
Panther
BF
Aggregator
2
LP
Term
Loan
B
USD
1
Month
LIBOR
3.500
Park
Place
Securities,
Inc.
Asset-Backed
Pass-Through
Certificates
USD
1
Month
LIBOR
1.125
Party
City
Holdings,
Inc.
1st
Lien
Term
Loan
USD
1
Month
LIBOR
2.500
PCI
Gaming
Authority,
Inc.
Term
Loan
USD
1
Month
LIBOR
3.000
Phoenix
Guarantor
Inc.
Term
Loan
B1
USD
1
Month
LIBOR
4.500
PMT
Credit
Risk
Transfer
Trust
USD
1
Month
LIBOR
2.000
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
B
USD
1
Month
LIBOR
2.000
Prime
Security
Services
Borrower
LLC
Term
Loan
B1
USD
1
Month
LIBOR
2.750
RAMP
Trust
USD
1
Month
LIBOR
0.570
RegionalCare
Hospital
Partners
Holdings,
Inc.
Term
Loan
B
USD
3
Month
LIBOR
3.500
Residential
Accredit
Loans,
Inc.
Federal
Reserve
U.S.
12
Month
Cumulative
Avg
1
Year
CMT
0.850
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
Riserva
CLO
Ltd.
USD
3
Month
LIBOR
1.140
Royal
Bank
of
Scotland
Group
PLC
USD
3
Month
LIBOR
1.762
Royal
Bank
of
Scotland
Group
PLC
USD
3
Month
LIBOR
1.550
RPI
Finance
Trust
Term
Loan
B
USD
1
Month
LIBOR
2.000
Scientific
Games
International,
Inc.
1st
Lien
Term
Loan
B5
USD
1
Month
LIBOR
2.750
Seattle
SpinCo,
Inc.1st
Lien
Term
Loan
B3
USD
1
Month
LIBOR
2.500
Shackleton
CLO,
Ltd.
USD
3
Month
LIBOR
1.000
SLM
Private
Credit
Student
Loan
Trust
USD
3
Month
LIBOR
0.290
SLM
Private
Credit
Student
Loan
Trust
USD
3
Month
LIBOR
0.330
SMB
Private
Education
Loan
Trust
USD
1
Month
LIBOR
1.000
Sprint
Communications,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.500
SS&C
Technologies,
Inc.
1st
Lien
Term
Loan
B5
USD
1
Month
LIBOR
2.250
Stars
Group
Holdings
BV
Term
Loan
B
USD
3
Month
LIBOR
3.500
Structured
Asset
Investment
Loan
Trust
USD
1
Month
LIBOR
0.720
Sungard
Availability
Services
Capital,
Inc.
Delayed
Draw
Term
Loan
USD
3
Month
LIBOR
0.000
Sungard
Availability
Services
Capital,
Inc.
Term
Loan
USD
1
Month
LIBOR
2.500
Tharaldson
Hotel
Portfolio
Trust
USD
1
Month
LIBOR
0.750
THL
Credit
Wind
River
CLO,
Ltd.
USD
3
Month
LIBOR
1.230
TKC
Holdings,
Inc.
1st
Lien
Term
Loan
USD
1
Month
LIBOR
3.750
Trans
Union
LLC
1st
Lien
Term
Loan
B3
USD
1
Month
LIBOR
2.000
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
109
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
UBS
Group
Funding
Switzerland
AG
USD
Swap
Semiannual
30/360
(versus
3
Month
LIBOR)
5
Year
Rate
4.344
UFC
Holdings
LLC
1st
Lien
Term
Loan
USD
1
Month
LIBOR
3.250
Unitymedia
Finance
LLC
1st
Lien
Term
Loan
D
USD
1
Month
LIBOR
2.250
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
Valeant
Pharmaceuticals
International,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
3.000
Viacom,
Inc.
USD
3
Month
LIBOR
3.899
VICI
Properties,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.000
Virgin
Media
Bristol
LLC
1st
Lien
Term
Loan
K
USD
1
Month
LIBOR
2.500
Voya
CLO,
Ltd.
USD
3
Month
LIBOR
1.250
VVC
Holding
Corp.
USD
3
Month
LIBOR
4.500
Wachovia
Capital
Trust
II
USD
3
Month
LIBOR
0.500
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
Washington
Mutual
Mortgage
Pass-Through
Certificates
Trust
Federal
Reserve
U.S.
12
Month
Cumulative
Avg
1
Year
CMT
1.070
Wells
Fargo
&
Co.
USD
3
Month
LIBOR
1.230
Wells
Fargo
&
Co.
USD
3
Month
LIBOR
1.170
Western
Digital
Corp.
1st
Lien
Term
Loan
B4
USD
1
Month
LIBOR
1.750
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
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Australia
10
Year
Government
Bond
Futures
220
AUD
31,604
09/19
208
Canada
10
Year
Government
Bond
Futures
206
CAD
29,444
09/19
79
Euro-BTP
Futures
17
EUR
2,283
09/19
105
Eurodollar
Futures
166
USD
40,707
12/19
319
Eurodollar
Futures
87
USD
21,398
06/20
197
Eurodollar
Futures
15
USD
3,693
03/21
34
Long
Gilt
Futures
183
GBP
23,845
09/19
289
SGX
Mini
10
Year
Japanese
Government
Bond
Futures
13
JPY
200,069
09/19
6
United
States
2
Year
Treasury
Note
Futures
214
USD
46,048
09/19
292
United
States
5
Year
Treasury
Note
Futures
326
USD
38,519
09/19
409
United
States
10
Year
Treasury
Note
Futures
1,268
USD
162,264
09/19
2,335
United
States
10
Year
Ultra
Treasury
Note
Futures
15
USD
2,072
09/19
38
United
States
Long
Bond
Futures
162
USD
25,206
09/19
706
United
States
Ultra
Bond
Futures
199
USD
35,335
09/19
1,317
Short
Positions
Canada
10
Year
Government
Bond
Futures
100
CAD
14,293
09/19
18
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
110
Strategic
Bond
Fund
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Euro-Bobl
Futures
68
EUR
9,142
09/19
(81)
Euro-Bund
Futures
310
EUR
53,550
09/19
(617)
Euro-OAT
Futures
29
EUR
4,781
09/19
(147)
Federal
Fund
30
Day
Futures
13
USD
5,306
08/19
(2)
Federal
Fund
30
Day
Futures
37
USD
15,163
01/20
(67)
Federal
Fund
30
Day
Futures
30
USD
12,205
07/19
—
Japan
10
Year
Government
Bond
Futures
31
JPY
4,769,349
09/19
(157)
Long
Gilt
Futures
46
GBP
5,994
09/19
(127)
United
States
2
Year
Treasury
Note
Futures
70
USD
15,063
09/19
(69)
United
States
5
Year
Treasury
Note
Futures
59
USD
6,971
09/19
(40)
United
States
10
Year
Treasury
Note
Futures
10
USD
1,280
09/19
(24)
United
States
10
Year
Ultra
Treasury
Note
Futures
94
USD
12,984
09/19
(148)
United
States
Long
Bond
Futures
107
USD
16,649
09/19
(421)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
4,452
Options
Written
Amounts
in
thousands
(except
contract
amounts)
Description
Counterparty
Call/Put
Number
of
Contracts
Strike
Price
Notional
Amount
Expiration
Date
Fair
Value
$
Eurodollar
1
Year
Mid-Curve
Options
Merrill
Lynch
Call
36
97.75
USD
8,798
12/13/19
(63)
Eurodollar
1
Year
Mid-Curve
Options
Merrill
Lynch
Call
36
98.50
USD
8,865
12/13/19
(18)
United
States
10
Year
Treasury
Note
Futures
Merrill
Lynch
Call
11
128.00
USD
1,408
07/26/19
(7)
United
States
10
Year
Treasury
Note
Futures
Merrill
Lynch
Put
11
127.25
USD
1,400
07/26/19
(4)
United
States
10
Year
Treasury
Note
Futures
Merrill
Lynch
Put
85
126.50
USD
10,753
08/23/19
(27)
United
States
10
Year
Treasury
Note
Futures
Merrill
Lynch
Put
55
127.00
USD
6,985
08/23/19
(25)
United
States
5
Year
Treasury
Note
Futures
Merrill
Lynch
Put
10
117.25
USD
1,173
07/26/19
(1)
United
States
5
Year
Treasury
Note
Futures
Merrill
Lynch
Put
10
117.25
USD
1,173
08/23/19
(2)
Total
Liability
for
Options
Written
(premiums
received
$122)
(147)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
2,590
HUF
745,897
08/22/19
44
Bank
of
America
USD
9,229
JPY
990,000
09/18/19
6
Bank
of
America
USD
5,737
TRY
36,717
08/22/19
428
Bank
of
America
CHF
15,239
USD
15,276
07/22/19
(363)
Bank
of
America
EUR
1,319
GBP
1,183
09/18/19
(2)
Bank
of
America
JPY
156,242
GBP
1,150
09/18/19
16
Bank
of
America
PLN
6,612
USD
1,726
08/22/19
(47)
Bank
of
America
THB
54,635
USD
1,735
08/22/19
(49)
Bank
of
Montreal
GBP
888
EUR
993
09/18/19
9
Bank
of
Montreal
GBP
863
JPY
118,394
09/18/19
11
Bank
of
Montreal
MXN
31,750
USD
1,632
09/18/19
(1)
Barclays
USD
1,708
BRL
6,638
07/17/19
19
Barclays
USD
2,824
CAD
3,750
07/17/19
40
Barclays
USD
366
GBP
278
07/17/19
(12)
Barclays
USD
1,016
INR
71,640
07/17/19
20
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
111
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Barclays
USD
121
MXN
2,300
07/17/19
(1)
Barclays
USD
224
RUB
14,890
07/17/19
11
Barclays
USD
11
TWD
327
07/17/19
—
Barclays
EUR
848
USD
962
07/17/19
(3)
Barclays
MXN
400
USD
20
07/17/19
—
BNP
Paribas
USD
3,020
RUB
197,662
08/22/19
85
BNP
Paribas
KRW
5,222,451
USD
4,407
08/22/19
(112)
Brown
Brothers
Harriman
EUR
1,319
GBP
1,183
09/18/19
(3)
Brown
Brothers
Harriman
JPY
156,293
GBP
1,150
09/18/19
16
Citigroup
USD
12
ARS
588
07/17/19
2
Citigroup
USD
1,046
MXN
20,390
07/17/19
14
Citigroup
USD
185
RUB
12,215
07/17/19
8
Citigroup
USD
3,020
RUB
197,662
08/22/19
83
Citigroup
CNY
10,521
USD
1,565
07/17/19
32
Citigroup
EUR
200
USD
226
07/17/19
(2)
Citigroup
JPY
39,894
USD
360
07/17/19
(10)
Commonwealth
Bank
of
Australia
USD
17,610
JPY
1,899,945
07/22/19
40
Commonwealth
Bank
of
Australia
USD
4,347
NZD
6,670
07/22/19
137
Commonwealth
Bank
of
Australia
GBP
888
EUR
996
09/18/19
16
Commonwealth
Bank
of
Australia
GBP
863
JPY
118,879
09/18/19
19
Commonwealth
Bank
of
Australia
MXN
31,750
USD
1,633
09/18/19
—
Goldman
Sachs
USD
87
RUB
5,506
07/02/19
—
Goldman
Sachs
USD
117
RUB
7,396
07/02/19
—
Goldman
Sachs
USD
188
RUB
11,884
07/02/19
—
Goldman
Sachs
RUB
5,506
USD
87
07/17/19
—
Goldman
Sachs
RUB
7,396
USD
117
07/17/19
—
Goldman
Sachs
RUB
11,884
USD
188
07/17/19
—
JPMorgan
Chase
USD
26
ARS
1,310
07/17/19
4
JPMorgan
Chase
USD
33
CAD
44
07/02/19
1
JPMorgan
Chase
USD
1,275
CAD
1,677
07/02/19
6
JPMorgan
Chase
USD
2,449
CAD
3,278
07/02/19
54
JPMorgan
Chase
USD
3,599
CHF
3,516
07/02/19
3
JPMorgan
Chase
USD
1,224
COP
3,912,988
07/02/19
(6)
JPMorgan
Chase
USD
1,229
COP
3,912,988
07/02/19
(12)
JPMorgan
Chase
USD
78
CZK
1,754
07/02/19
—
JPMorgan
Chase
USD
4,393
GBP
3,451
08/13/19
(2)
JPMorgan
Chase
USD
67
HKD
524
07/02/19
—
JPMorgan
Chase
USD
3,414
HUF
972,644
07/02/19
10
JPMorgan
Chase
USD
1,670
JPY
179,651
08/13/19
1
JPMorgan
Chase
USD
43
MXN
847
07/02/19
1
JPMorgan
Chase
USD
2,458
MXN
47,171
07/02/19
—
JPMorgan
Chase
USD
49
NOK
423
07/02/19
—
JPMorgan
Chase
USD
2,831
NOK
24,302
07/02/19
18
JPMorgan
Chase
USD
1,398
NOK
11,865
10/03/19
(3)
JPMorgan
Chase
USD
5,008
NZD
7,671
08/13/19
150
JPMorgan
Chase
USD
1,416
PEN
4,663
07/02/19
—
JPMorgan
Chase
USD
1,418
PEN
4,663
07/02/19
(2)
JPMorgan
Chase
USD
39
PLN
148
07/02/19
1
JPMorgan
Chase
USD
1,780
PLN
6,777
07/02/19
35
JPMorgan
Chase
USD
1,849
PLN
6,925
10/03/19
9
JPMorgan
Chase
USD
56
SEK
516
07/02/19
(1)
JPMorgan
Chase
USD
758
SEK
7,282
07/02/19
26
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
112
Strategic
Bond
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
JPMorgan
Chase
USD
4,161
SEK
38,251
07/02/19
(41)
JPMorgan
Chase
USD
4,998
SEK
46,049
10/03/19
(7)
JPMorgan
Chase
USD
5,505
SGD
7,457
07/02/19
6
JPMorgan
Chase
AUD
5,281
USD
3,698
08/13/19
(14)
JPMorgan
Chase
BRL
2,198
USD
564
07/25/19
(7)
JPMorgan
Chase
BRL
4,603
USD
1,200
07/30/19
4
JPMorgan
Chase
CAD
4,999
USD
3,749
07/02/19
(68)
JPMorgan
Chase
CAD
1,677
USD
1,277
10/03/19
(6)
JPMorgan
Chase
CHF
47
USD
48
07/02/19
(1)
JPMorgan
Chase
CHF
3,469
USD
3,518
07/02/19
(35)
JPMorgan
Chase
CHF
3,516
USD
3,629
10/03/19
(3)
JPMorgan
Chase
COP
3,912,988
USD
1,171
07/02/19
(47)
JPMorgan
Chase
COP
3,912,988
USD
1,224
07/02/19
6
JPMorgan
Chase
COP
3,240,037
USD
987
07/25/19
(20)
JPMorgan
Chase
COP
3,912,988
USD
1,226
08/02/19
11
JPMorgan
Chase
CZK
1,754
USD
77
07/02/19
(2)
JPMorgan
Chase
CZK
1,754
USD
78
10/03/19
—
JPMorgan
Chase
EUR
4,661
USD
5,265
08/13/19
(53)
JPMorgan
Chase
HKD
524
USD
67
07/02/19
—
JPMorgan
Chase
HKD
524
USD
67
10/03/19
—
JPMorgan
Chase
HUF
12,940
USD
45
07/02/19
—
JPMorgan
Chase
HUF
959,704
USD
3,398
07/02/19
20
JPMorgan
Chase
HUF
972,644
USD
3,432
10/03/19
(10)
JPMorgan
Chase
IDR
32,537,505
USD
2,258
07/25/19
(40)
JPMorgan
Chase
MXN
1,453
USD
75
07/02/19
(1)
JPMorgan
Chase
MXN
14,423
USD
738
07/02/19
(13)
JPMorgan
Chase
MXN
32,142
USD
1,643
07/02/19
(31)
JPMorgan
Chase
MXN
47,171
USD
2,420
10/03/19
—
JPMorgan
Chase
NOK
11,865
USD
1,394
07/02/19
3
JPMorgan
Chase
NOK
12,860
USD
1,503
07/02/19
(4)
JPMorgan
Chase
NZD
11,723
USD
7,791
08/13/19
(92)
JPMorgan
Chase
PEN
4,663
USD
1,392
07/02/19
(24)
JPMorgan
Chase
PEN
4,663
USD
1,418
07/02/19
2
JPMorgan
Chase
PEN
6,125
USD
1,825
07/25/19
(33)
JPMorgan
Chase
PEN
7,257
USD
2,186
07/26/19
(15)
JPMorgan
Chase
PEN
4,663
USD
1,413
08/02/19
(1)
JPMorgan
Chase
PLN
6,925
USD
1,845
07/02/19
(10)
JPMorgan
Chase
RUB
33,250
USD
527
07/17/19
2
JPMorgan
Chase
SEK
46,049
USD
4,966
07/02/19
7
JPMorgan
Chase
SGD
100
USD
74
07/02/19
—
JPMorgan
Chase
SGD
7,357
USD
5,439
07/02/19
2
JPMorgan
Chase
SGD
7,457
USD
5,511
10/03/19
(8)
JPMorgan
Chase
THB
51,270
USD
1,642
07/24/19
(30)
JPMorgan
Chase
THB
108,326
USD
3,541
07/30/19
6
Royal
Bank
of
Canada
USD
1,709
MXN
33,113
08/22/19
2
Royal
Bank
of
Canada
EUR
1,319
GBP
1,183
09/18/19
(2)
Royal
Bank
of
Canada
EUR
8,737
USD
9,814
07/22/19
(138)
Royal
Bank
of
Canada
GBP
888
EUR
994
09/18/19
13
Royal
Bank
of
Canada
GBP
863
JPY
118,637
09/18/19
15
Royal
Bank
of
Canada
JPY
156,267
GBP
1,150
09/18/19
16
Royal
Bank
of
Canada
MXN
31,750
USD
1,633
09/18/19
—
Royal
Bank
of
Canada
NOK
94,930
USD
10,873
07/22/19
(264)
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
113
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Standard
Chartered
USD
1,066
IDR
15,724,398
08/22/19
40
Standard
Chartered
AUD
13,300
USD
9,185
09/18/19
(174)
State
Street
USD
4,356
CAD
5,832
07/22/19
100
State
Street
USD
9,184
CAD
12,200
09/18/19
145
State
Street
USD
15
HUF
4,386
08/22/19
—
State
Street
USD
25
IDR
362,175
08/22/19
1
State
Street
USD
1,647
IDR
24,252,279
08/22/19
59
State
Street
USD
3,197
IDR
47,173,194
08/22/19
122
State
Street
USD
22
MXN
427
08/22/19
—
State
Street
USD
62
MYR
260
08/22/19
1
State
Street
USD
3,223
MYR
13,483
08/22/19
40
State
Street
USD
—
PLN
1
08/22/19
—
State
Street
USD
7
RUB
433
08/22/19
—
State
Street
USD
10,935
SEK
103,897
07/22/19
271
State
Street
USD
1
THB
19
08/22/19
—
State
Street
USD
91
ZAR
1,355
08/22/19
5
State
Street
USD
1,719
ZAR
24,708
08/22/19
24
State
Street
CLP
48,942
USD
70
08/22/19
(2)
State
Street
CLP
2,995,464
USD
4,318
08/22/19
(105)
State
Street
GBP
888
EUR
996
09/18/19
17
State
Street
GBP
863
JPY
118,845
09/18/19
19
State
Street
HKD
387
USD
49
08/22/19
—
State
Street
HKD
33,884
USD
4,323
08/22/19
(16)
State
Street
KRW
72,604
USD
61
08/22/19
(2)
State
Street
KRW
1,955,024
USD
1,650
08/22/19
(42)
State
Street
MXN
31,750
USD
1,631
09/18/19
(2)
State
Street
NZD
14,000
USD
9,186
09/18/19
(233)
State
Street
PEN
186
USD
55
08/22/19
(1)
State
Street
PEN
14,384
USD
4,308
08/22/19
(51)
State
Street
SGD
71
USD
52
08/22/19
(1)
State
Street
SGD
5,911
USD
4,324
08/22/19
(48)
State
Street
TRY
736
USD
121
08/22/19
(3)
State
Street
TWD
1,587
USD
50
08/22/19
(1)
State
Street
TWD
53,604
USD
1,726
08/22/19
(9)
UBS
USD
1,073
MYR
4,494
08/22/19
15
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
8
Interest
Rate
Swap
Contracts
Amounts
in
thousands
Counterparty
Notional
Amount
Fund
Receives
Fund
Pays
Termination
Date
Premiums
Paid
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
Citigroup
BRL
1,189
8.41
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
1
8
9
Citigroup
BRL
2,300
8.41
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
—
17
17
Citigroup
BRL
2,600
8.41
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
1
19
20
Citigroup
BRL
4,000
8.41
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
2
28
30
Citigroup
BRL
11,431
8.41
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
—
85
85
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
114
Strategic
Bond
Fund
Interest
Rate
Swap
Contracts
Amounts
in
thousands
Counterparty
Notional
Amount
Fund
Receives
Fund
Pays
Termination
Date
Premiums
Paid
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
JPMorgan
Chase
HUF
1,080,700
Six
Month
BUBOR
(3)
1.85
(4)
04/05/27
—
(82)
(82)
Merrill
Lynch
MXN
188,910
7.35
(1)
Mexico
Interbank
28
Day
Deposit
Rate
(1)
04/05/21
(6)
(44)
(50)
Merrill
Lynch
USD
5,040
Three
Month
LIBOR
(2)
1.73
(3)
06/27/21
—
7
7
Merrill
Lynch
GBP
1,500
Six
Month
LIBOR
(3)
1.27
(3)
10/26/21
1
(18)
(17)
Merrill
Lynch
USD
10,113
2.25
(2)
Three
Month
LIBOR
(3)
04/26/22
2
61
63
Merrill
Lynch
USD
10,303
Three
Month
LIBOR
(2)
2.30
(3)
04/26/23
1
(59)
(58)
Merrill
Lynch
USD
4,216
Three
Month
LIBOR
(5)
2.25
(3)
12/31/25
23
(135)
(112)
Merrill
Lynch
USD
3,378
Three
Month
LIBOR
(2)
1.85
(3)
04/30/26
5
(14)
(9)
Merrill
Lynch
USD
6,053
Federal
Fund
Effective
Rate
(2)
1.55
(3)
04/30/26
7
(1)
6
Merrill
Lynch
USD
2,751
3.00
(3)
Three
Month
LIBOR
(2)
02/15/36
5
342
347
Merrill
Lynch
USD
1,974
Three
Month
LIBOR
(2)
3.33
(3)
02/15/44
—
(449)
(449)
Merrill
Lynch
USD
2,072
Three
Month
LIBOR
(2)
2.88
(3)
05/15/44
9
(278)
(269)
Merrill
Lynch
USD
2,072
Three
Month
LIBOR
(2)
3.00
(3)
05/15/44
(3)
(318)
(321)
Merrill
Lynch
USD
2,295
Three
Month
LIBOR
(2)
2.75
(3)
08/15/44
(10)
(232)
(242)
UBS
USD
9,581
Three
Month
LIBOR
(2)
2.50
(3)
01/31/26
(132)
(272)
(404)
Total
Open
Interest
Rate
Swap
Contracts
(å)
(94)
(1,335)
(1,429)
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
NA
High
Yield
Index
Goldman
Sachs
Sell
USD
8,900
5.000%
(2)
06/20/24
424
265
689
CDX
NA
High
Yield
Index
Goldman
Sachs
Sell
USD
3,430
5.000%
(2)
06/24/24
176
96
272
CDX
NA
High
Yield
Index
Merrill
Lynch
Sell
USD
830
5.000%
(2)
06/20/24
42
22
64
CDX
NA
Investment
Grade
Index
Goldman
Sachs
Sell
USD
9,270
1.000%
(2)
12/20/23
40
178
218
CDX
NA
Investment
Grade
Index
Goldman
Sachs
Sell
USD
9,360
1.000%
(2)
06/20/24
143
67
210
CDX
NA
Investment
Grade
Index
Merrill
Lynch
Sell
USD
4,400
1.000%
(2)
06/20/24
73
23
96
Total
Open
Credit
Indices
Contracts
(å)
898
651
1,549
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
115
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Long-Term
Investments
Asset-Backed
Securities
$
—
$
43,655
$
—
$
—
$
43,655
4.8
Corporate
Bonds
and
Notes
—
164,161
—
—
164,161
17.9
International
Debt
—
72,19
1
—
—
72,1
9
1
7.9
Loan
Agreements
—
6,243
—
—
6,243
0.7
Mortgage-Backed
Securities
—
280,121
200
—
280,321
30.5
Municipal
Bonds
—
820
—
—
820
0.1
Non-US
Bonds
—
37,908
—
—
37,908
4.1
United
States
Government
Treasuries
—
197,394
—
—
197,394
21.5
Common
Stocks
—
—
—
—
—
—
Options
Purchased
90
—
—
—
90
—
*
Short-Term
Investments
—
97,31
3
—
55,425
152,7
3
8
16.6
Total
Investments
90
899,806
200
55,425
955,521
104.1
Other
Assets
and
Liabilities,
Net
(4.1)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
6,35
2
—
—
—
6,35
2
0.
7
Foreign
Currency
Exchange
Contracts
—
2,349
—
—
2,349
0.3
Interest
Rate
Swap
Contracts
—
584
—
—
584
0.1
Credit
Default
Swap
Contracts
—
1,549
—
—
1,549
0.2
A
Liabilities
Futures
Contracts
(1,900)
—
—
—
(1,900)
(0.2)
Options
Written
(147)
—
—
—
(147)
(
—
)
*
Foreign
Currency
Exchange
Contracts
(1)
(2,340)
—
—
(2,341)
(0.
3
)
Interest
Rate
Swap
Contracts
—
(2,01
3
)
—
—
(2,01
3
)
(0.2)
Total
Other
Financial
Instruments
**
$
4,304
$
1
29
$
—
$
—
$
4,43
3
*
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
June
30,
2019,
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
June
30,
2019,
were
less
than
1%
of
net
assets.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
116
Strategic
Bond
Fund
Amounts
in
thousands
Country
Exposure
Fair
Value
$
Argentina
................................................................................
903
Australia
.................................................................................
2,739
Austria
....................................................................................
454
Brazil
......................................................................................
5,514
Canada
....................................................................................
10,043
Cayman
Islands
.......................................................................
18,144
Chile
.......................................................................................
420
China
......................................................................................
516
Colombia
.................................................................................
6,437
Curacao
...................................................................................
29
Denmark
.................................................................................
695
Ecuador
..................................................................................
198
Finland
...................................................................................
384
France
.....................................................................................
3,285
Germany
.................................................................................
90
Guernsey
.................................................................................
352
Hong
Kong
..............................................................................
224
India
.......................................................................................
257
Indonesia
................................................................................
2,976
Ireland
....................................................................................
2,760
Italy
........................................................................................
1,554
Japan
......................................................................................
3,839
Kazakhstan
.............................................................................
221
Kuwait
....................................................................................
223
Luxembourg
............................................................................
1,241
Macao
.....................................................................................
429
Malaysia
..................................................................................
3,884
Mexico
....................................................................................
10,605
Netherlands
............................................................................
9,969
Norway
....................................................................................
2,398
Panama
...................................................................................
251
Peru
........................................................................................
2,786
Poland
.....................................................................................
1,534
Russia
.....................................................................................
2,364
Saudi
Arabia
...........................................................................
202
Singapore
................................................................................
5,644
South
Korea
............................................................................
488
Spain
.......................................................................................
1,269
Sweden
....................................................................................
529
Switzerland
.............................................................................
980
Thailand
..................................................................................
227
United
Arab
Emirates
.............................................................
243
United
Kingdom
......................................................................
9,038
United
States
...........................................................................
839,183
Total
Investments
....................................................................
955,521
Russell
Investment
Funds
Strategic
Bond
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
117
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Investments,
at
fair
value*
$
—
$
—
$
90
Unrealized
appreciation
on
foreign
currency
exchange
contracts
—
2,349
—
Variation
margin
on
futures
contracts**
—
—
6,352
Interest
rate
swap
contracts,
at
fair
value
—
—
584
Credit
default
swap
contracts,
at
fair
value
1,549
—
—
Total
$
1,549
$
2,349
$
7,026
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts**
$
—
$
—
$
1,900
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
2,341
—
Options
written,
at
fair
value
—
—
147
Interest
rate
swap
contracts,
at
fair
value
—
—
2,01
3
Total
$
—
$
2,341
$
4,0
60
Derivatives
not
accounted
for
as
hedging
instruments
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Investments***
$
—
$
(46)
$
(41)
Futures
contracts
—
1,146
9,789
Options
written
—
35
263
Interest
rate
swap
contracts
—
—
5
Credit
default
swap
contracts
1,459
—
—
Foreign
currency
exchange
contracts
—
(1,480)
—
Total
$
1,459
$
(345)
$
10,016
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments****
$
—
$
(24)
$
71
Futures
contracts
—
(85)
(1,694)
Options
written
—
32
21
Interest
rate
swap
contracts
—
—
(1,355)
Credit
default
swap
contracts
1,050
—
—
Foreign
currency
exchange
contracts
—
174
—
Total
$
1,050
$
97
$
(2,957)
*
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.
Russell
Investment
Funds
Strategic
Bond
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
118
Strategic
Bond
Fund
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Options
Purchased
Contracts
Investments,
at
fair
value
$
90
$
—
$
90
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
2,349
—
2,349
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
584
—
584
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
1,549
—
1,549
Total
Financial
and
Derivative
Assets
4,572
—
4,572
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(1,97
0
)
—
(1,97
0
)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
2,60
2
$
—
$
2,60
2
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
America
$
495
$
461
$
33
$
1
Bank
of
Montreal
20
—
—
20
Barclays
92
18
74
—
BNP
Paribas
85
85
—
—
Brown
Brothers
Harriman
15
3
—
12
Citigroup
300
12
90
198
Commonwealth
Bank
of
Australia
212
—
—
212
Goldman
Sachs
1
—
1
—
JPMorgan
Chase
389
389
—
—
Merrill
Lynch
90
90
—
—
Royal
Bank
of
Canada
46
46
—
—
Standard
Chartered
40
40
—
—
State
Street
802
514
—
288
UBS
15
—
13
2
Total
$
2,602
$
1,
65
8
$
211
$
73
3
Russell
Investment
Funds
Strategic
Bond
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
119
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
2,341
$
—
$
2,341
Options
Written
Contracts
Options
written,
at
fair
value
147
—
147
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
2,01
3
—
2,01
3
Total
Financial
and
Derivative
Liabilities
4,50
1
—
4,50
1
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(1,93
2
)
—
(1,93
2
)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
2,56
9
$
—
$
2,56
9
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
America
$
461
$
461
$
—
$
—
Barclays
18
18
—
—
BNP
Paribas
112
85
10
17
Brown
Brothers
Harriman
3
3
—
—
Citigroup
12
12
—
—
JPMorgan
Chase
725
389
336
—
Merrill
Lynch
147
90
57
—
Royal
Bank
of
Canada
403
46
—
357
Standard
Chartered
174
40
—
134
State
Street
514
514
—
—
Total
$
2,569
$
1,6
5
8
$
403
$
5
0
8
^ 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.
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
120
Strategic
Bond
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
933,744
Investments,
at
fair
value(>)
...........................................................................................................................................................
955,521
Cash
...............................................................................................................................................................................................
4,327
Foreign
currency
holdings(^)
.........................................................................................................................................................
1,789
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
2,349
Receivables:
Dividends
and
interest
.......................................................................................................................................................
5,075
Dividends
from
affiliated
funds
..........................................................................................................................................
113
Investments
sold
................................................................................................................................................................
11,809
Fund
shares
sold
................................................................................................................................................................
83
From
broker(a)(b)(c)
...........................................................................................................................................................
9,318
Variation
margin
on
futures
contracts
.................................................................................................................................
5,478
Prepaid
expenses
...........................................................................................................................................................................
4
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
584
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
1,549
Total
assets
.................................................................................................................................................
997,999
Liabilities
Payables:
Due
to
broker
(d)(e)(f)
........................................................................................................................................................
5,44
3
Investments
purchased
......................................................................................................................................................
68,34
6
Fund
shares
redeemed
.......................................................................................................................................................
36
Accrued
fees
to
affiliates
....................................................................................................................................................
45
4
Other
accrued
expenses
.....................................................................................................................................................
14
0
Variation
margin
on
futures
contracts
.................................................................................................................................
1,017
Deferred
capital
gains
tax
liability
.....................................................................................................................................
1
2
Unfunded
loan
commitment
...............................................................................................................................................
23
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
2,341
Options
written,
at
fair
value(x)
......................................................................................................................................................
147
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
2,01
3
Total
liabilities
.............................................................................................................................................
79,972
Net
Assets
............................................................................................................................................................
$
918,027
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
121
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
16,026
Shares
of
beneficial
interest
...........................................................................................................................................................
863
Additional
paid-in
capital
..............................................................................................................................................................
901,138
Net
Assets
............................................................................................................................................................
$
918,027
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.64
Net
assets
...............................................................................................................................................................................
$
918,027,116
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
86,264,647
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
1,792
(x)
Premiums
received
on
options
written
$
122
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
898
(•)
Interest
rate
swap
contracts
-
premiums
paid
(received)
$
(94)
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
$
55,4
25
(a)
Receivable
from
Broker
for
Futures
$
6,859
(b)
Receivable
from
Broker
for
Swaps
$
2,269
(c)
Receivable
from
Broker
for
Forwards
$
190
(d) Due
to
Broker
for
Futures
$
1,940
(e)
Due
to
Broker
for
Swaps
$
3,37
3
(f)
Due
to
Broker
for
Forwards
$
130
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
122
Strategic
Bond
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
from
affiliated
funds
.........................................................................................................................................
$
614
Interest
..............................................................................................................................................................................
14,347
Total
investment
income
...............................................................................................................................................................
14,961
Expenses
Advisory
fees
....................................................................................................................................................................
2,429
Administrative
fees
...........................................................................................................................................................
221
Custodian
fees
...................................................................................................................................................................
150
Transfer
agent
fees
............................................................................................................................................................
18
Professional
fees
...............................................................................................................................................................
67
Trustees’
fees
....................................................................................................................................................................
15
Printing
fees
......................................................................................................................................................................
59
Miscellaneous
...................................................................................................................................................................
15
Total
expenses
...............................................................................................................................................................................
2,974
Net
investment
income
(loss)
........................................................................................................................................................
11,987
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes
............................................................................
3,441
Investments
in
affiliated
funds
..........................................................................................................................................
12
Futures
contracts
..............................................................................................................................................................
10,935
Options
written
.................................................................................................................................................................
298
Foreign
currency
exchange
contracts
................................................................................................................................
(1,480)
Interest
rate
swap
contracts
...............................................................................................................................................
5
Credit
default
swap
contracts
............................................................................................................................................
1,459
Foreign
currency-related
transactions
...............................................................................................................................
(75)
Net
realized
gain
(loss)
..................................................................................................................................................................
14,595
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
31,406
Investments
in
affiliated
funds
..........................................................................................................................................
10
Futures
contracts
..............................................................................................................................................................
(1,779)
Options
written
.................................................................................................................................................................
53
Foreign
currency
exchange
contracts
................................................................................................................................
174
Interest
rate
swap
contracts
...............................................................................................................................................
(1,355)
Credit
default
swap
contracts
............................................................................................................................................
1,050
Foreign
currency-related
transactions
...............................................................................................................................
65
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
29,624
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
44,219
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
56,206
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
123
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
11,987
$
21,715
Net
realized
gain
(loss)
......................................................................................................................
14,595
(23,026)
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
29,624
(6,627)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
56,206
(7,938)
Distributions
To
shareholders
.................................................................................................................................
(6,513)
(18,804)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(6,513)
(18,804)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(10,327)
(1,964)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
39,366
(28,706)
Net
Assets
Beginning
of
period
.................................................................................................................................
878,661
907,367
End
of
period
..........................................................................................................................................
$
918,027
$
878,661
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
1,380
$
14,243
3,617
$
36,596
Proceeds
from
reinvestment
of
distributions
635
6,513
1,872
18,804
Payments
for
shares
redeemed
(3,029)
(31,083)
(5,709)
(57,364)
Total
increase
(decrease)
(1,014)
$
(10,327)
(220)
$
(1,964)
Russell
Investment
Funds
Strategic
Bond
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
124
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2019(1)
10.07
.14
.51
.65
(.08)
—
December
31,
2018
10.37
.25
(.34)
(.09)
(.21)
—
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
125
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.08)
10.64
6.44
918,027
.67
.67
2.71
66
(.21)
10.07
(.81)
878,661
.67
.67
2.44
96
(.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
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
126
Strategic
Bond
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019
,
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:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
41
2
,
833
Administration
fees
37,530
Transfer
agent
fees
3,303
$
45
3
,
666
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
U.S.
Cash
Management
Fund
$
58,419
$
293,870
$
296,886
$
12
$
10
$
55,425
$
614
$
—
$
58,419
$
293,870
$
296,886
$
12
$
10
$
55,425
$
614
$
—
Cost
of
Investments
$
936,343,397
Unrealized
Appreciation
$
31,058,921
Unrealized
Depreciation
(7,325,195)
Net
Unrealized
Appreciation
(Depreciation)
$
23,733,726
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
Global
Real
Estate
Securities
Fund
127
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2019
$
1,144
.30
$
1,020
.23
Expenses
Paid
During
Period*
$
4
.89
$
4
.61
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.92%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
128
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
97.8%
Australia
-
3.8%
Charter
Hall
Group
-
ADR(ö)
613,298
4,672
Dexus
Property
Group(Æ)(ö)
241,813
2,207
Goodman
Group(ö)
697,321
7,370
GPT
Group
(The)(ö)
1,246,415
5,391
Mirvac
Group(ö)
4,458,598
9,815
Scentre
Group(ö)
2,086,874
5,636
35,091
Austria
-
0.2%
CA
Immobilien
Anlagen
AG
49,112
1,803
Belgium
-
0.4%
Aedifica
(ö)
26,776
2,555
VGP
NV
8,100
671
3,226
Canada
-
2.3%
Allied
Properties
Real
Estate
Investment
Trust(ö)
128,341
4,641
Boardwalk
Real
Estate
Investment
Trust(ö)
144,351
4,392
Canadian
Apartment
Properties(ö)
99,273
3,666
Crombie
Real
Estate
Investment
Trust(ö)
132
2
First
Capital
Realty,
Inc.
Class
A
47,840
799
Granite
Real
Estate
Investment
Trust(ö)
49,224
2,266
H&R
Real
Estate
Investment
Trust(Æ)(ö)
37
1
RioCan
Real
Estate
Investment
Trust(ö)
63,117
1,253
SmartCentres
Real
Estate
Investment
Trust(ö)
140,663
3,567
20,587
China
-
0.2%
China
Overseas
Land
&
Investment,
Ltd.
608,000
2,244
Finland
-
0.0%
Citycon
OYJ(Æ)(Ñ)
40,894
426
France
-
2.7%
Covivio
(ö)
29,002
3,036
Gecina
SA(ö)
45,618
6,827
Klepierre
SA
-
GDR(ö)
433,455
14,530
24,393
Germany
-
3.4%
ADO
Properties
SA(Þ)
34,332
1,420
Alstria
Office
REIT-AG(ö)
225,844
3,657
Deutsche
Wohnen
SE
262,017
9,611
Instone
Real
Estate
Group
AG(Æ)(Þ)
65,959
1,482
LEG
Immobilien
AG
40,121
4,525
Vonovia
SE
220,893
10,550
31,245
Hong
Kong
-
10.5%
Champion
REIT(Æ)(ö)
667,433
555
CK
Asset
Holdings,
Ltd.
807,759
6,306
Hongkong
Land
Holdings,
Ltd.
2,004,000
12,927
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Hysan
Development
Co.,
Ltd.
497,596
2,572
Link
Real
Estate
Investment
Trust(ö)
1,519,500
18,689
New
World
Development
Co.,
Ltd.
6,943,929
10,821
Sino
Land
Co.,
Ltd.
2,092,664
3,500
Sun
Hung
Kai
Properties,
Ltd.
1,432,389
24,324
Swire
Properties,
Ltd.
2,622,026
10,598
Wharf
Real
Estate
Investment
Co.,
Ltd.
759,801
5,338
95,630
Ireland
-
0.2%
Green
REIT
PLC(ö)
927,104
1,908
Hibernia
REIT
PLC(ö)
229,581
378
2,286
Japan
-
10.2%
Activia
Properties,
Inc.(ö)
1,431
6,224
Daibiru
Corp.
100,700
939
Daiwa
House
REIT
Investment
Corp.(ö)
508
1,226
Daiwa
Office
Investment
Corp.(ö)
238
1,707
Frontier
Real
Estate
Investment
Corp.(ö)
494
2,108
Global
One
Real
Estate
Investment
Corp.(ö)
3,277
4,084
GLP
J-
Reit
(ö)
1,910
2,177
Hulic
Co.,
Ltd.
107,900
869
Invincible
Investment
Corp.(ö)
5,570
2,885
Japan
Logistics
Fund,
Inc.(ö)
716
1,638
Japan
Real
Estate
Investment
Corp.(ö)
132
803
Mitsubishi
Estate
Co.,
Ltd.
1,095,776
20,441
Mitsui
Fudosan
Co.,
Ltd.
414,700
10,068
Mori
Hills
REIT
Investment
Corp.
Class
A(ö)
2,416
3,421
Mori
Trust
Sogo
REIT,
Inc.(ö)
1,054
1,713
Nippon
Building
Fund,
Inc.(ö)
749
5,128
Nippon
Prologis
REIT,
Inc.(Æ)(ö)
1,329
3,068
NIPPON
REIT
Investment
Corp.(ö)
363
1,411
Nomura
Real
Estate
Master
Fund,
Inc.(ö)
2,033
3,126
Orix
JREIT,
Inc.(ö)
2,574
4,693
Premier
Investment
Corp.(ö)
2,172
2,856
Sekisui
House
REIT,
Inc.(ö)
401
300
Sumitomo
Realty
&
Development
Co.,
Ltd.
145,686
5,209
Tokyo
Tatemono
Co.,
Ltd.
274,382
3,054
Tokyu
Fudosan
Holdings
Corp.
540,581
2,990
XYMAX
REIT
Investment
Corp.(ö)
915
1,072
93,210
Netherlands
-
1.2%
Eurocommercial
Properties
NV
92,914
2,483
InterXion
Holding
NV(Æ)
63,741
4,850
Unibail
-
Rodamco
-Westfield(ö)
23,725
3,555
10,888
Norway
-
0.4%
Entra
ASA(Þ)
228,194
3,504
Singapore
-
1.7%
CapitaLand,
Ltd.
2,019,900
5,272
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
129
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
City
Developments,
Ltd.
370,300
2,600
Frasers
Centrepoint
Trust(ö)
572,300
1,100
Mapletree
Logistics
Trust(ö)
2,989,700
3,517
Parkway
Life
Real
Estate
Investment
Trust(Æ)(ö)
975,200
2,184
UOL
Group,
Ltd.
87,500
488
15,161
Spain
-
1.2%
Inmobiliaria
Colonial
Socimi
SA(ö)
276,065
3,074
Merlin
Properties
Socimi
SA(ö)
579,689
8,042
11,116
Sweden
-
1.4%
Atrium
Ljungberg
AB
Class
B
18,870
341
Castellum
AB
255,274
4,883
Catena
AB
55,072
1,730
Fabege
AB
208,222
3,134
Fastighets
AB
Balder
Class
B(Æ)
43,476
1,456
Hufvudstaden
AB
Class
A
47,538
808
12,352
Switzerland
-
0.4%
Swiss
Prime
Site
AG
Class
A(Æ)
40,856
3,567
United
Kingdom
-
5.8%
Assura
PLC(ö)
2,088,720
1,693
Big
Yellow
Group
PLC(ö)
123,947
1,558
British
Land
Co.
PLC
(The)(ö)
1,328,943
9,094
Derwent
London
PLC(ö)
76,760
3,038
Grainger
PLC
536,647
1,675
Great
Portland
Estates
PLC(ö)
580,961
5,050
Hammerson
PLC(ö)
907,276
3,197
Intu
Properties
PLC
Class
H(Ñ)(ö)
399,730
387
Land
Securities
Group
PLC(ö)
702,810
7,444
LondonMetric
Property
PLC(ö)
653,588
1,752
PRS
REIT
PLC
(The)(ö)
970,815
1,159
Safestore
Holdings
PLC(ö)
161,822
1,262
Segro
PLC(ö)
818,627
7,593
St.
Modwen
Properties
PLC
112,403
626
Tritax
EuroBox
PLC(ö)(Þ)
598,090
731
UNITE
Group
PLC
(The)(ö)
278,868
3,454
Urban
&
Civic
PLC
678,500
2,857
52,570
United
States
-
51.8%
Agree
Realty
Corp.(ö)
75,233
4,819
Alexandria
Real
Estate
Equities,
Inc.
(Ñ)(ö)
45,572
6,430
American
Campus
Communities,
Inc.(ö)
97,887
4,518
American
Homes
4
Rent
Class
A(ö)
160,866
3,911
Americold
Realty
Trust(Ñ)(ö)
286,108
9,276
Apartment
Investment
&
Management
Co.
Class
A(ö)
114,214
5,724
AvalonBay
Communities,
Inc.(ö)
35,582
7,230
BGP
Holdings
PLC(Æ)(Š)
926,311
—
Boston
Properties,
Inc.(ö)
68,491
8,835
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Boyd
Gaming
Corp.
105,825
2,851
Brixmor
Property
Group,
Inc.(ö)
323,382
5,782
Camden
Property
Trust(ö)
25,932
2,707
Columbia
Property
Trust,
Inc.(ö)
93,359
1,936
CoreSite
Realty
Corp.
Class
A(ö)
20,722
2,387
Crown
Castle
International
Corp.(ö)
24,076
3,138
CubeSmart
(ö)
195,740
6,546
CyrusOne
,
Inc.(ö)
106,041
6,121
DiamondRock
Hospitality
Co.(ö)
209,427
2,165
Digital
Realty
Trust,
Inc.(ö)
4,041
476
Douglas
Emmett,
Inc.(ö)
95,754
3,815
Empire
State
Realty
Trust,
Inc.
Class
A(ö)
191,184
2,831
Equinix
,
Inc.(Æ)(ö)
15,202
7,666
Equity
LifeStyle
Properties,
Inc.
Class
A(ö)
90,591
10,992
Equity
Residential(ö)
184,033
13,972
Essential
Properties
Realty
Trust,
Inc.(ö)
109,458
2,194
Essex
Property
Trust,
Inc.(ö)
53,396
15,588
Extra
Space
Storage,
Inc.(ö)
163,743
17,373
Federal
Realty
Investment
Trust(ö)
12,678
1,632
HCP,
Inc.(ö)
273,259
8,739
Healthcare
Realty
Trust,
Inc.(ö)
40,702
1,275
Host
Hotels
&
Resorts,
Inc.(ö)
395,537
7,207
Hudson
Pacific
Properties,
Inc.(ö)
65,330
2,174
Invitation
Homes,
Inc.(ö)
445,718
11,914
JBG
Smith
Properties(ö)
139,476
5,487
Kilroy
Realty
Corp.(ö)
149,012
10,999
Kimco
Realty
Corp.(ö)
250,475
4,629
Liberty
Property
Trust(ö)
35,602
1,782
Life
Storage,
Inc.(Æ)(ö)
14,055
1,336
Macerich
Co.
(The)(Ñ)(ö)
239,661
8,026
Mack-Cali
Realty
Corp.(ö)
155,204
3,615
Medical
Properties
Trust,
Inc.(ö)
266,614
4,650
MGM
Growth
Properties
LLC
Class
A(ö)
68,818
2,109
Mid-America
Apartment
Communities,
Inc.(ö)
66,096
7,783
Paramount
Group,
Inc.(ö)
328,669
4,605
Park
Hotels
&
Resorts,
Inc.(ö)
180,698
4,980
Pebblebrook
Hotel
Trust(ö)
121,227
3,416
Physicians
Realty
Trust(ö)
164,455
2,868
Prologis,
Inc.(ö)
361,901
28,987
Public
Storage(ö)
63,388
15,097
QTS
Realty
Trust,
Inc.
Class
A(ö)
5,684
262
Realty
Income
Corp.(ö)
124,541
8,590
Regency
Centers
Corp.(ö)
198,467
13,246
Rexford
Industrial
Realty,
Inc.(ö)
110,692
4,469
RLJ
Lodging
Trust(ö)
159,963
2,838
Ryman
Hospitality
Properties,
Inc.(ö)
51,583
4,183
Sabra
Health
Care
REIT,
Inc.(ö)
171,759
3,382
SBA
Communications
Corp.(Æ)(ö)
12,272
2,759
Simon
Property
Group,
Inc.(ö)
145,797
23,292
SITE
Centers
Corp.(ö)
120,488
1,595
SL
Green
Realty
Corp.(ö)
182,006
14,628
STAG
Industrial,
Inc.(ö)
107,930
3,264
STORE
Capital
Corp.(ö)
151,766
5,037
Sun
Communities,
Inc.(ö)
48,433
6,209
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
130
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Sunstone
Hotel
Investors,
Inc.(ö)
171,494
2,351
Taubman
Centers,
Inc.(ö)
37,977
1,551
UDR,
Inc.(ö)
368,634
16,548
VEREIT,
Inc.(ö)
1,221,581
11,006
VICI
Properties,
Inc.(Ñ)(ö)
287,142
6,329
Vornado
Realty
Trust(ö)
141,081
9,043
Weingarten
Realty
Investors(ö)
87,966
2,412
Welltower
,
Inc.(ö)
334,706
27,288
472,875
Total
Common
Stocks
(cost
$771,803)
892,174
Short-Term
Investments
-
0.9%
United
States
-
0.9%
U.S.
Cash
Management
Fund(@)
8,372,763
(∞)
8,376
Total
Short-Term
Investments
(cost
$8,374)
8,376
Other
Securities
-
3.6%
U.S.
Cash
Collateral
Fund(×)(@)
32,761,301
(∞)
32,761
Total
Other
Securities
(cost
$32,761)
32,761
Total
Investments
102.3%
(identified
cost
$812,938)
933,311
Other
Assets
and
Liabilities,
Net
-
(2.3%)
(20,794)
Net
Assets
-
100.0%
912,517
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
131
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
0.8%
ADO
Properties
SA
07/23/15
EUR
34,332
34.55
1,186
1,420
Entra
ASA
08/04/15
NOK
228,194
11.11
2,535
3,504
Instone
Real
Estate
Group
AG
03/28/19
EUR
65,959
23.54
1,553
1,482
Tritax
EuroBox
PLC
07/04/18
GBP
598,090
1.16
692
731
7,137
For
a
description
of
restricted
securities
see
note
7
in
the
Notes
to
Financial
Statements.
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Dow
Jones
U.S.
Real
Estate
Index
Futures
299
USD
10,354
09/19
(135)
FTSE/EPRA
Europe
Index
Futures
122
EUR
2,560
09/19
(93)
Hang
Seng
Index
Futures
8
HKD
11,402
07/19
16
MSCI
Singapore
Index
Futures
16
SGD
605
07/19
5
S&P/TSX
60
Index
Futures
4
CAD
782
09/19
4
SPI
200
Index
Futures
7
AUD
1,148
09/19
8
TOPIX
Index
Futures
14
JPY
217,141
09/19
(5)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(200)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
Montreal
USD
311
AUD
447
09/18/19
4
Bank
of
Montreal
USD
191
CAD
253
09/18/19
3
Bank
of
Montreal
USD
1,361
EUR
1,195
09/18/19
5
Bank
of
Montreal
USD
1,106
JPY
119,074
09/18/19
5
Bank
of
Montreal
USD
259
SGD
353
09/18/19
2
Bank
of
New
York
CAD
200
USD
150
09/18/19
(3)
Royal
Bank
of
Canada
USD
311
AUD
447
09/18/19
3
Royal
Bank
of
Canada
USD
153
CAD
200
09/18/19
—
Royal
Bank
of
Canada
USD
191
CAD
253
09/18/19
3
Royal
Bank
of
Canada
USD
1,362
EUR
1,195
09/18/19
4
Royal
Bank
of
Canada
USD
841
HKD
6,582
09/18/19
2
Royal
Bank
of
Canada
USD
1,106
JPY
119,074
09/18/19
5
Royal
Bank
of
Canada
USD
259
SGD
353
09/18/19
2
Standard
Chartered
USD
110
AUD
160
09/18/19
3
Standard
Chartered
USD
142
CAD
190
09/18/19
2
Standard
Chartered
USD
226
EUR
200
09/18/19
3
Standard
Chartered
USD
841
HKD
6,582
09/18/19
2
Standard
Chartered
USD
138
JPY
14,830
09/18/19
1
Standard
Chartered
SGD
40
USD
29
09/18/19
—
State
Street
AUD
170
USD
117
09/18/19
(3)
State
Street
EUR
140
USD
158
09/18/19
(2)
State
Street
HKD
1,400
USD
179
09/18/19
—
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
132
Global
Real
Estate
Securities
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
State
Street
JPY
15,430
USD
144
09/18/19
—
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
41
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Common
Stocks
Australia
$
—
$
35,091
$
—
$
—
$
35,091
3
.8
Austria
—
1,803
—
—
1,803
0
.2
Belgium
—
3,226
—
—
3,226
0
.4
Canada
20,587
—
—
—
20,587
2
.3
China
—
2,244
—
—
2,244
0
.2
Finland
—
426
—
—
426
—
*
France
—
24,393
—
—
24,393
2
.7
Germany
—
31,245
—
—
31,245
3
.4
Hong
Kong
—
95,630
—
—
95,630
10
.5
Ireland
—
2,286
—
—
2,286
0
.2
Japan
—
93,210
—
—
93,210
10
.2
Netherlands
5,988
4,900
—
—
10,888
1
.2
Norway
—
3,504
—
—
3,504
0
.4
Singapore
—
15,161
—
—
15,161
1
.7
Spain
—
11,116
—
—
11,116
1
.2
Sweden
—
12,352
—
—
12,352
1
.4
Switzerland
—
3,567
—
—
3,567
0
.4
United
Kingdom
—
52,570
—
—
52,570
5
.8
United
States
472,875
—
—
—
472,875
51
.8
Short-Term
Investments
—
—
—
8,376
8,376
0
.9
Other
Securities
—
—
—
32,761
32,761
3
.6
Total
Investments
499,450
392,724
—
41,137
933,311
102
.3
Other
Assets
and
Liabilities,
Net
(2
.3)
100
.0
Other
Financial
Instruments
Assets
Futures
Contracts
33
—
—
33
—
*
Foreign
Currency
Exchange
Contracts
—
49
—
49
—
*
A
Liabilities
Futures
Contracts
(233
)
—
—
(233
)
(—)
*
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
133
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Foreign
Currency
Exchange
Contracts
—
(8
)
—
(8
)
(—)
*
Total
Other
Financial
Instruments
**
$
(200
)
$
41
$
—
$
$
(159
)
*
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
June
30,
2019,
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
June
30,
2019,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Property
Sector
Exposure
Fair
Value
$
Diversified
..............................................................................
288,848
Healthcare
..............................................................................
52,079
Industrial
................................................................................
66,802
Lodging/Resorts
......................................................................
32,134
Office
......................................................................................
130,340
Residential
..............................................................................
149,046
Retail
......................................................................................
129,753
Self
Storage
.............................................................................
43,172
Short-Term
Investments
..........................................................
8,376
Other
Securities
......................................................................
32,761
Total
Investments
....................................................................
933,311
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
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
49
Variation
margin
on
futures
contracts*
33
—
Total
$
33
$
49
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
233
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
8
Total
$
233
$
8
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
1,845
$
—
Foreign
currency
exchange
contracts
—
(32)
Total
$
1,845
$
(32)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
733
$
—
Foreign
currency
exchange
contracts
—
14
Total
$
733
$
14
*
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.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
135
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
31,994
$
—
$
31,994
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
49
—
49
Total
Financial
and
Derivative
Assets
32,043
—
32,043
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
32,043
$
—
$
32,043
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
Montreal
$
19
$
—
$
—
$
19
Citigroup
6,107
—
—
6,107
JPMorgan
Chase
367
—
—
367
Merrill
Lynch
18,280
—
—
18,280
Morgan
Stanley
7,239
—
—
7,239
Royal
Bank
of
Canada
19
—
—
19
Standard
Chartered
12
—
—
12
Total
$
32,043
$
—
$
—
$
32,043
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
136
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
8
$
—
$
8
Total
Financial
and
Derivative
Liabilities
8
—
8
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
8
$
—
$
8
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
New
York
$
3
$
—
$
—
$
3
State
Street
5
—
—
5
Total
$
8
$
—
$
—
$
8
*
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.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
137
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
812,938
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
933,311
Cash
...............................................................................................................................................................................................
7,473
Foreign
currency
holdings(^)
.........................................................................................................................................................
355
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
49
Receivables:
Dividends
and
interest
.......................................................................................................................................................
3,754
Dividends
from
affiliated
funds
..........................................................................................................................................
19
Fund
shares
sold
................................................................................................................................................................
37
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
229
From
broker(a)
...................................................................................................................................................................
1,121
Variation
margin
on
futures
contracts
.................................................................................................................................
33
Prepaid
expenses
...........................................................................................................................................................................
4
Total
assets
.................................................................................................................................................
946,385
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
79
Accrued
fees
to
affiliates
....................................................................................................................................................
64
6
Other
accrued
expenses
.....................................................................................................................................................
14
2
Variation
margin
on
futures
contracts
.................................................................................................................................
232
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
8
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
32,761
Total
liabilities
.............................................................................................................................................
33,868
Net
Assets
............................................................................................................................................................
$
912,517
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
138
Global
Real
Estate
Securities
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
104,517
Shares
of
beneficial
interest
...........................................................................................................................................................
60
2
Additional
paid-in
capital
..............................................................................................................................................................
807,398
Net
Assets
............................................................................................................................................................
$
912,51
7
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
15.15
Net
assets
...............................................................................................................................................................................
$
912,517,315
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
60,244,882
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
354
(*)
Securities
on
loan
included
in
investments
$
31,994
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
41,137
(a)
Receivable
from
Broker
for
Futures
$
1,121
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
139
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
11,70
3
Dividends
from
affiliated
funds
.........................................................................................................................................
213
Securities
lending
income
(net)
.........................................................................................................................................
67
Less
foreign
taxes
withheld
...............................................................................................................................................
(691)
Total
investment
income
...............................................................................................................................................................
11,
292
Expenses
Advisory
fees
....................................................................................................................................................................
3,590
Administrative
fees
...........................................................................................................................................................
224
Custodian
fees
...................................................................................................................................................................
159
Transfer
agent
fees
............................................................................................................................................................
19
Professional
fees
...............................................................................................................................................................
55
Trustees’
fees
....................................................................................................................................................................
15
Printing
fees
......................................................................................................................................................................
56
Miscellaneous
...................................................................................................................................................................
1
6
Total
expenses
...............................................................................................................................................................................
4,134
Net
investment
income
(loss)
........................................................................................................................................................
7,158
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
.......................................................................................................................................................................
11,951
Investments
in
affiliated
funds
..........................................................................................................................................
4
Futures
contracts
..............................................................................................................................................................
1,845
Foreign
currency
exchange
contracts
................................................................................................................................
(32)
Foreign
currency-related
transactions
...............................................................................................................................
(14)
Net
realized
gain
(loss)
..................................................................................................................................................................
13,754
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
.......................................................................................................................................................................
96,419
Investments
in
affiliated
funds
..........................................................................................................................................
2
Futures
contracts
..............................................................................................................................................................
733
Foreign
currency
exchange
contracts
................................................................................................................................
14
Foreign
currency-related
transactions
...............................................................................................................................
13
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
97,181
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
110,935
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
118,093
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
140
Global
Real
Estate
Securities
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
7,158
$
26,548
Net
realized
gain
(loss)
......................................................................................................................
13,754
13,800
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
97,181
(90,795)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
118,093
(50,447)
Distributions
To
shareholders
.................................................................................................................................
(5,641)
(40,384)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(5,641)
(40,384)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(22,409)
13,851
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
90,043
(76,980)
Net
Assets
Beginning
of
period
.................................................................................................................................
822,474
899,454
End
of
period
..........................................................................................................................................
$
912,517
$
822,474
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
448
$
6,701
1,49
4
$
21,338
Proceeds
from
reinvestment
of
distributions
371
5,641
2,900
40,384
Payments
for
shares
redeemed
(2,338)
(34,751)
(3,345)
(47,871)
Total
increase
(decrease)
(1,519)
$
(22,409)
1,049
$
13,851
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
142
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
June
30,
2019(1)
13.32
.12
1.80
1.92
(.09)
—
—
December
31,
2018
14.81
.43
(1.26)
(.83)
(.64)
(.02)
—
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)
—
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
143
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.09)
15.15
14.43
912,517
.92
.92
1.59
32
(.66)
13.32
(5.72)
822,474
.92
.92
3.03
78
(.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
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
144
Global
Real
Estate
Securities
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019,
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:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
604,670
Administration
fees
37,792
Transfer
agent
fees
3,327
$
645,789
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
U.S.
Cash
Management
Fund
$
18,169
$
99
,478
$
109,277
$
4
$
2
$
8,376
$
213
$
—
U.S.
Cash
Collateral
Fund
2,813
78,567
48,619
—
—
32,761
138
—
$
20,982
$
178,045
$
157,896
$
4
$
2
$
41,137
$
351
$
—
Cost
of
Investments
$
843,294,190
Unrealized
Appreciation
$
107,413,476
Unrealized
Depreciation
(17,555,869)
Net
Unrealized
Appreciation
(Depreciation)
$
89,857,607
Russell
Investment
Funds
Notes
to
Schedules
of
Investments
—
June
30,
2019
(Unaudited)
Notes
to
Schedules
of
Investments
145
Footnotes:
Abbreviations:
(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,
foreign
currency
exchange
contracts,
or
swaps
entered
into
by
the
Fund.
(ž
)
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.
(∞)
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.
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
Russell
Investment
Funds
Notes
to
Schedules
of
Investments,
continued
—
June
30,
2019
(Unaudited)
146
Notes
to
Schedules
of
Investments
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
Russell
Investment
Funds
Notes
to
Schedules
of
Investments,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Schedules
of
Investments
147
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
Russell
Investment
Funds
Notes
to
Financial
Highlights
—
June
30,
2019
(Unaudited)
148
Notes
to
Financial
Highlights
(1)
For
the
period
ended
June
30,
2019
(Unaudited).
(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)
Periods
less
than
one
year
are
not
annualized.
(e)
Periods
less
than
one
year
are
annualized.
(f)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
(g)
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.
Fund
Impact
of
the
fee
reimbursement
on
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%
Russell
Investment
Funds
Notes
to
Financial
Statements
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
149
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
a
Second
Amended
and
Restated
Master
Trust
Agreement
dated
March
1,
2018,
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
equivalents
(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.
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
August
2018,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2018-13,
Fair
Value
Measurement
(Topic
820):
Disclosure
Framework
-
Changes
to
the
Disclosure
Requirements
for
Fair
Value
Measurements.
The
amendments
in
the
ASU
modify
the
disclosure
requirements
on
fair
value
measurements
in
Topic
820.
The
ASU
is
effective
for
interim
and
annual
reporting
periods
beginning
after
December
15,
2019.
Management
is
currently
evaluating
the
impact,
if
any,
of
applying
this
provision
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements.
Reclassifications
Certain
prior
period
amounts
have
been
reclassified
to
conform
to
the
current
period
presentation.
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
150
Notes
to
Financial
Statements
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:
Equity
securities,
including
common
and
preferred
stock,
short
securities,
ETFs
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
investment
funds
that
are
not
traded
on
a
national
securities
exchange
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
151
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
("OIS")
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
period
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
June
30,
2019.
The
Strategic
Bond
Fund
had
transfers
out
of
Level
3
into
Level
2
representing
financial
instruments
for
which
approved
pricing
became
available.
The
amount
transferred
was
$389,240.
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
152
Notes
to
Financial
Statements
The
significant
unobservable
inputs
used
in
fair
value
measurement
of
certain
of
the
Funds'
private
equity
securities
include
market
data
of
comparable
public
companies,
discount
rates,
EBITDA
multiples,
and
future
projected
cash
flows
for
the
portfolio
company.
These
inputs
are
utilized
in
valuation
models
that
are
based
on
market
analysis
and
discounted
cash
flow
methodologies.
Significant
increases
or
decreases
in
the
unobservable
inputs
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.
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
153
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
June
30,
2019,
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,
2016
through
December
31,
2018,
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:
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
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
154
Notes
to
Financial
Statements
of
changes
in
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
market
prices
for
realized
gain
(or
loss)
on
debt
obligations.
Capital
Gains
Taxes
The
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
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
June
30,
2019.
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
for
the
following
Funds:
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
Receivable
from
broker
and
Payable
due
to
broker
for
futures
and
swap
contracts.
Securities
and
cash
pledged
as
collateral
are
reflected
as
assets
on
the
Statements
of
Assets
and
Liabilities
as
either
a
component
of
Investments
at
fair
value
(securities)
or
Receivable
from
broker.
Cash
collateral
received
is
not
typically
held
in
a
segregated
account
and
as
such
is
reflected
as
a
liability
on
the
Statement
of
Assets
and
Liabilities
as
Due
to
broker.
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.
Deferred
Capital
Gains
Tax
Liability
Capital
Gains
Taxes
International
Developed
Markets
Fund
$
—
1,194
Strategic
Bond
Fund
11,550
—
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
155
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
June
30,
2019,
if
applicable,
are
disclosed
in
the
Fair
Value
of
Derivative
Instruments
table
following
each
applicable
Fund’s
Schedule
of
Investments.
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
June
30,
2019,
the
following
Funds
entered
into
foreign
currency
exchange
contracts
primarily
for
the
strategies
listed
below:
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.
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.
Funds
Strategies
International
Developed
Markets
Fund
Return
enhancement,
hedging,
exposing
cash
to
markets,
and
trade
settlement
Strategic
Bond
Fund
Return
enhancement
and
hedging
Global
Real
Estate
Securities
Fund
Exposing
cash
to
markets
and
trade
settlement
Outstanding
Contract
Amounts
Sold
Quarter
Ended
March
31,
2019
June
30,
2019
International
Developed
Markets
Fund
$
166,952,447
$
108,530,104
Strategic
Bond
Fund
276,761,776
346,905,191
Global
Real
Estate
Securities
Fund
13,077,807
9,690,876
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2019
June
30,
2019
International
Developed
Markets
Fund
$
166,988,286
$
108,684,111
Strategic
Bond
Fund
281,153,505
338,223,071
Global
Real
Estate
Securities
Fund
13,018,690
9,698,703
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
156
Notes
to
Financial
Statements
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.
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
June
30,
2019,
the
Strategic
Bond
Fund
purchased/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.
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
June
30,
2019,
the
following
Funds
entered
into
futures
contracts
primarily
for
the
strategies
listed
below:
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.
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
Notional
of
Options
Contracts
Outstanding
Funds
March
31,
2019
June
30,
2019
Strategic
Bond
Fund
$
50,072,755
$
58,192,750
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
Notional
of
Futures
Contracts
Outstanding
Funds
March
31,
2019
June
30,
2019
U.S.
Strategic
Equity
Fund
$
6,243,160
$
7,066,080
U.S.
Small
Cap
Equity
Fund
2,006,940
7,600,435
International
Developed
Markets
Fund
118,377,117
112,050,501
Strategic
Bond
Fund
584,543,689
679,752,543
Global
Real
Estate
Securities
Fund
21,319,343
18,589,439
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
157
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.
Total
return
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
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
Fund
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
158
Notes
to
Financial
Statements
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
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
June
30,
2019,
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
June
30,
2019,
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
159
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
June
30,
2019,
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
at
each
quarter
end.
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
June
30,
2019,
there
were
no
total
return
swaps
held
in
the
Funds.
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
June
30,
2019,
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,
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,
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2019
June
30,
2019
Strategic
Bond
Fund
$
36,699,702
$
36,190,000
Interest
Rate
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2019
June
30,
2019
Strategic
Bond
Fund
$
60,993,824
$
81,003,255
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
160
Notes
to
Financial
Statements
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
June
30,
2019,
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.
Short
Sales
The
U.S.
Strategic
Equity
and
U.S.
Small
Cap
Equity
Funds
may
enter
into
short
sale
transactions.
In
a
short
sale,
the
seller
sells
a
security
that
it
does
not
own,
typically
a
security
borrowed
from
a
broker
or
dealer.
Because
the
seller
remains
liable
to
return
the
underlying
security
that
it
borrowed
from
the
broker
or
dealer,
the
seller
must
purchase
the
security
prior
to
the
date
on
which
delivery
to
the
broker
or
dealer
is
required.
The
Funds
will
incur
a
loss
as
a
result
of
the
short
sale
if
the
price
of
the
security
increases
between
the
date
of
the
short
sale
and
the
date
on
which
the
Funds
must
return
the
borrowed
security.
The
Funds
will
realize
a
gain
if
the
security
declines
in
price
between
those
dates.
Short
sales
expose
the
Funds
to
the
risk
of
liability
for
the
fair
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
161
value
of
the
security
that
is
sold
(the
amount
of
which
increases
as
the
fair
value
of
the
underlying
security
increases),
in
addition
to
the
costs
associated
with
establishing,
maintaining
and
closing
out
the
short
position.
Although
the
Funds’
potential
for
gain
as
a
result
of
a
short
sale
is
limited
to
the
price
at
which
it
sold
the
security
short
less
the
cost
of
borrowing
the
security,
its
potential
for
loss
is
theoretically
unlimited
because
there
is
no
limit
to
the
cost
of
replacing
the
borrowed
security.
When
the
Funds
make
a
short
sale,
the
Funds
may
use
all
or
a
portion
of
the
cash
proceeds
of
short
sales
to
purchase
other
securities
or
for
any
other
permissible
Fund
purpose.
To
the
extent
necessary
to
meet
collateral
requirements,
the
Funds
are
required
to
pledge
assets
in
a
segregated
account
maintained
by
the
Funds’
custodian
for
the
benefit
of
the
broker.
The
Funds
also
may
use
securities
they
own
to
meet
any
such
collateral
obligations.
Until
the
Funds
replace
a
borrowed
security
in
connection
with
a
short
sale,
the
Funds
will:
(a)
maintain
daily
a
segregated
account,
containing
liquid
assets
at
such
a
level
that
the
amount
deposited
in
the
segregated
account
will
equal
the
current
requirement
under
Regulation
T
promulgated
by
the
Board
of
Governors
of
the
Federal
Reserve
System
under
the
authority
of
Sections
7
and
8
of
the
Securities
Exchange
Act
of
1934,
as
amended;
or
(b)
otherwise
cover
its
short
position
in
accordance
with
positions
taken
by
the
staff
of
the
Securities
and
Exchange
Commission
(e.g.,
taking
an
offsetting
long
position
in
the
security
sold
short).
As
of
June
30,
2019,
the
market
value
of
securities
on
loan
through
the
reciprocal
lending
program
for
U.S.
Small
Cap
Equity
Fund
were
$8,016,407.
As
of
June
30,
2019,
the
U.S.
Small
Cap
Equity
Fund
held
$12,526,129
as
collateral
for
short
sales.
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
162
Notes
to
Financial
Statements
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.
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,
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
163
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.
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
164
Notes
to
Financial
Statements
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
June
30,
2019,
the
Strategic
Bond
Fund
had
no
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
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.
Investment
Transactions
Securities
During
the
period
ended
June
30,
2019,
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
and
sales
of
U.S.
Government
and
Agency
obligations
(excluding
short-term
investments,
options,
futures
and
repurchase
agreements)
were
as
follows:
cx
Purchases
Sales
U.S.
Strategic
Equity
Fund
$
296,972,944
$
321,654,313
U.S.
Small
Cap
Equity
Fund
119,114,428
130,838,596
International
Developed
Markets
Fund
187,954,521
177,358,683
Strategic
Bond
Fund
190,598,532
174,004,436
Global
Real
Estate
Securities
Fund
276,526,836
286,282,173
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
165
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
collateral
cannot
be
resold,
repledged
or
rehypothecated.
As
of
June
30,
2019,
to
the
extent
that
a
loan
was
collateralized
by
cash,
such
collateral
was
invested
by
the
securities
lending
agent,
Goldman
Sachs
Agency
Lending
("GSAL"),
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.
Income
generated
from
the
investment
of
cash
collateral,
less
negotiated
rebate
fees
paid
to
participating
brokers,
is
divided
between
the
Fund
and
the
securities
lending
agent
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
the
securities
lending
agent
and
are
recorded
as
securities
lending
income
for
the
Fund.
All
collateral
received
will
be
in
an
amount
at
least
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.
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
RIF,
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
RIF
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
June
30,
2019,
the
Funds
had
invested
$110,057,427
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
$49,415,878
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
administrative
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.
The
following
table
shows
the
total
amount
of
each
of
these
fees
paid
by
the
Funds
for
the
period
ended
June
30,
2019:
Purchases
Sales
Strategic
Bond
Fund
$
371,902,811
$
380,996,455
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
166
Notes
to
Financial
Statements
There
were
no
advisory
fee
waivers
for
the
Funds
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
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
June
30,
2019
were
as
follows:
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,
(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
June
30,
2019,
the
Funds
did
not
engage
in
purchases
and
sales
of
securities
pursuant
to
Rule
17a
-7
of
the
Investment
Company
Act.
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.
Advisory
Administrative
U.S.
Strategic
Equity
Fund
$
1,515,563
$
103,806
U.S.
Small
Cap
Equity
Fund
1,013,502
56,306
International
Developed
Markets
Fund
1,711,489
95,083
Strategic
Bond
Fund
2,428,575
220,780
Global
Real
Estate
Securities
Fund
3,590,345
224,397
Amount
U.S.
Strategic
Equity
Fund
$
8,579
U.S.
Small
Cap
Equity
Fund
4,649
International
Developed
Markets
Fund
7,855
Strategic
Bond
Fund
18,266
Global
Real
Estate
Securities
Fund
18,546
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
167
For
the
period
ended
June
30,
2019,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
$894,250.
Federal
Income
Taxes
At
June
30,
2019,
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:
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.
Record
Ownership
At
June
30,
2019,
the
following
table
includes
shareholders
of
record
with
greater
than
10%
of
the
total
outstanding
shares
of
each
respective
Fund:
Restricted
Securities
Restricted
securities
are
subject
to
contractual
restrictions
on
resale,
are
often
issued
in
private
placement
transactions,
and
are
not
registered
under
the
Securities
Act
of
1933,
as
amended,
("the
Act").
The
most
common
types
of
restricted
securities
are
those
sold
under
Rule
144A
of
the
Act
and
commercial
paper
sold
under
Section
4(2)
of
the
Act.
See
each
Fund’s
Schedule
of
Investments
for
a
list
of
restricted
securities
that
have
been
footnoted
as
a
restricted
security.
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
June
30,
2019,
there
were
no
unfunded
loan
commitments
held
by
the
Fund.
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.
On
July
1,
2019,
the
Board
declared
dividends
payable
from
net
investment
income.
Dividends
were
paid
on
July
3,
2019
to
shareholders
of
record
effective
with
the
opening
on
July
2,
2019.
No
Expiration
Funds
Short
Term
Long-Term
Totals
Strategic
Bond
Fund
$
14,440,436
$
7,696,379
$22,136,815
#
of
Shareholders
%
U.S.
Strategic
Equity
Fund
2
86.6
U.S.
Small
Cap
Equity
Fund
3
81.1
International
Developed
Markets
Fund
2
70.7
Strategic
Bond
Fund
1
70.6
Global
Real
Estate
Securities
Fund
2
90.8
Russell
Investment
Funds
Affiliated
Brokerage
Transactions
—
June
30,
2019
(Unaudited)
168
Affiliated
Brokerage
Transactions
As
stated
in
the
Note
4
in
the
Notes
to
Financial
Statements
contained
in
this
semi-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,
(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.
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
June
30,
2019
were
as
follows:
Fund
Name
Amount
U.S.
Strategic
Equity
Fund
$
40,120
U.S.
Small
Cap
Equity
Fund
20,126
International
Developed
Markets
Fund
88,813
Strategic
Bond
Fund
—
Global
Real
Estate
Securities
Fund
41,079
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
169
Approval
of
Investment
Advisory
Agreement
The
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
requires
that
the
Board
of
Trustees
(the
“Board”),
including
a
majority
of
its
members
who
are
not
considered
to
be
“interested
persons”
under
the
1940
Act
(the
“Independent
Trustees”)
voting
separately,
approve
for
an
initial
term
not
to
exceed
two
years
and,
thereafter,
approve
the
continuation
of
the
advisory
agreement
with
Russell
Investment
Management,
LLC
(“RIM”)
(the
“RIM
Agreement”)
and
the
portfolio
management
contract
with
each
Money
Manager
of
the
Funds
(collectively,
the
“portfolio
management
contracts”
and,
with
the
RIM
Agreement,
the
“Agreements”)
on
at
least
an
annual
basis
and
that
the
terms
and
conditions
of
the
RIM
Agreement
and
the
terms
and
conditions
of
each
portfolio
management
contract
provide
for
its
termination
if
continuation
is
not
approved
annually.
The
Board,
including
all
of
the
Independent
Trustees,
considered
and
approved
the
continuation
of
the
Agreements
at
a
meeting
held
in
person
on
May
20,
2019
(the
“Agreement
Evaluation
Meeting”).
During
the
course
of
a
year,
the
Trustees
receive
a
wide
variety
of
materials
regarding,
among
other
things,
the
investment
performance
of
the
Funds,
sales
and
redemptions
of
the
Funds’
shares,
management
of
the
Funds
and
other
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
and
compliance
with
applicable
regulatory
requirements.
In
preparation
for
the
annual
review,
the
Independent
Trustees,
with
the
advice
and
assistance
of
their
independent
counsel
(“Independent
Counsel”),
also
requested
and
the
Board
considered
(1)
information
and
reports
prepared
by
RIM
relating
to
the
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
to
the
Funds;
(2)
information
and
reports
prepared
by
RIM
relating
to
the
profitability
of
each
Fund
to
RIM
(and
its
affiliates);
and
(3)
information
received
from
an
independent,
nationally
recognized
provider
of
investment
company
information
comparing
the
performance
of
the
Funds
and
their
respective
operating
expenses
over
various
periods
of
time
with
other
peer
funds
not
managed
by
RIM,
believed
by
the
provider
to
be
generally
comparable
to
the
Funds
(the
“Third-Party
Information”).
In
the
case
of
each
Fund,
its
other
peer
funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Comparable
Funds,”
and,
with
the
Fund,
such
Comparable
Funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Performance
Universe”
in
the
case
of
performance
comparisons
and
the
Fund’s
“Expense
Universe”
in
the
case
of
operating
expense
comparisons.
The
foregoing
and
other
information
received
by
the
Board,
including
the
Independent
Trustees,
in
connection
with
its
evaluations
of
the
Agreements
are
collectively
called
the
“Agreement
Evaluation
Information.”
The
Trustees’
evaluations
also
reflected
the
knowledge
and
familiarity
gained
as
Board
members
of
the
Funds
and
the
other
RIM-managed
funds
for
which
the
Board
has
supervisory
responsibility
(“Other
RIM
Funds”)
with
respect
to
services
provided
by
RIM,
RIM’s
affiliates
and
each
Money
Manager.
The
Trustees
received
a
memorandum
from
counsel
to
the
Funds
(“Fund
Counsel”)
discussing
the
legal
standards
for
their
consideration
of
the
continuations
of
the
Agreements,
and
the
Independent
Trustees
separately
received
a
memorandum
regarding
their
responsibilities
from
Independent
Counsel.
At
a
meeting
held
in
person
on
April
30,
2019
(the
“Agreement
Information
Review
Meeting,”),
the
Board,
including
the
Independent
Trustees,
in
preparation
for
the
Agreement
Evaluation
Meeting,
met
with
representatives
of
RIM;
met
in
an
executive
session
with
a
representative
of
TA
Associates
Management,
L.P.
(“TA
Associates”),
at
which
the
Chief
Operating
Officer
(“COO”)
of
RIM’s
parent
company
was
present;
and
then
the
Independent
Trustees
met
in
a
private
session
with
Independent
Counsel
at
which
no
representatives
of
RIM
or
the
Funds’
management
were
present
to
review
the
Agreement
Evaluation
Information
received
to
that
date
and,
on
the
basis
of
that
review,
communicated
additional
questions
and
requested
additional
Agreement
Evaluation
Information.
Certain
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
was
received
on
May
10,
2019.
On
May
14,
2019,
the
Independent
Trustees
met
by
conference
telephone
call
in
private
session
with
Independent
Counsel
to
further
discuss
the
Agreement
Evaluation
Information
and
review
the
additional
Agreement
Evaluation
Information.
On
May
14,
2019,
following
the
aforementioned
conference
call,
the
Board
Chair
met
in-person
with
representatives
of
management.
At
the
Agreement
Evaluation
Meeting,
the
Independent
Trustees
again
met
in
person
in
a
private
session
with
Independent
Counsel
to
review
additional
or
revised
Agreement
Evaluation
Information
received
to
that
date.
At
the
Agreement
Evaluation
Meeting,
the
Board,
including
the
Independent
Trustees,
considered
the
proposed
continuance
of
the
Agreements
with
RIM,
Fund
management,
Independent
Counsel
and
Fund
Counsel.
The
Board
considered
that
the
Agreement
Evaluation
Information
and
presentations
made
by
RIM
at
the
Agreement
Evaluation
Meeting
as
part
of
this
review
encompassed
the
Funds
and
all
Other
RIM
Funds.
Information
received
by
the
Board,
including
the
Independent
Trustees,
prior
to
and
at
the
Agreement
Information
Review
Meeting,
the
Agreement
Evaluation
Meeting
and
other
meetings
identified
above
is
included
in
the
Agreement
Evaluation
Information.
Prior
to
voting
at
the
Agreement
Evaluation
Meeting,
the
Independent
Trustees
met
in
private
session
with
Independent
Counsel
to
consider
Agreement
Evaluation
Information
received
from
RIM
and
management
at
and
prior
to
the
Agreement
Evaluation
Meeting.
The
discussion
below
reflects
all
of
these
reviews.
In
evaluating
the
Agreements,
the
Board
considered
that
each
of
the
Funds
employs
a
manager-of-managers
method
of
investment
and
RIM’s
past
expressed
belief
that
such
Funds,
in
employing
a
manager-of-managers
method
of
investment,
operate
in
a
manner
that
is
different
from
most
other
investment
companies.
In
the
case
of
most
other
investment
companies,
an
investment
advisory
fee
is
paid
by
the
investment
company
to
its
adviser
which,
in
turn,
employs
and
compensates
individual
portfolio
managers
to
make
specific
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
170
Basis
for
Approval
of
Investment
Advisory
Agreement
securities
selections
consistent
with
the
adviser’s
style
and
investment
philosophy.
RIM,
however,
has
engaged
multiple
unaffiliated
Money
Managers.
RIM
is
responsible
for
paying
fees
for
Money
Managers
(“Money
Manager
Fees”)
out
of
the
fees
paid
by
the
Funds
to
RIM
for
its
services
under
the
RIM
Agreement
(the
“Advisory
Fee”).
A
Money
Manager
may
have
(1)
a
discretionary
asset
management
assignment
pursuant
to
which
it
is
allocated
a
portion
of
a
Fund’s
assets
to
manage
directly
in
its
discretion;
(2)
a
non-discretionary
assignment
pursuant
to
which
it
provides
a
model
portfolio
to
RIM
representing
its
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
a
Fund;
or
(3)
both
a
discretionary
and
a
non-discretionary
assignment.
Money
Managers
may
be
paid
fees
at
a
lower
rate
for
non-discretionary
services
than
discretionary
services.
The
Board
considered
that
RIM
(rather
than
any
Money
Manager)
is
responsible
under
the
RIM
Agreement
for
determining,
implementing
and
maintaining
the
investment
program
for
each
Fund.
The
Board
considered
that,
although
RIM
traditionally
has
managed
Fund
exposures
through
the
selection
of
and
allocations
to
Money
Manager
strategies,
innovations
in
RIM
portfolio
management
techniques
together
with
evolutions
in
available
technology,
tools
and
analytics
have
resulted
in
certain
changes
in
RIM’s
approach
to
its
Fund
investment
advisory
services.
In
this
regard,
assets
of
each
Fund
continue
to
be
allocated
among
RIM
and
the
multiple
Money
Manager
strategies
selected
by
RIM
for
that
Fund.
In
addition,
RIM
continues
to
manage
the
investment
of
each
Fund’s
cash
and
portions
of
a
Fund
during
transitions
between
discretionary
Money
Managers.
RIM
also
continues
to
manage
directly
any
portion
of
each
Fund’s
assets
that
RIM
determines
not
to
allocate
to
Money
Manager
strategies.
The
Funds
usually,
but
not
always,
pursue
a
strategy
to
be
fully
invested
by
exposing
all
or
a
portion
of
their
cash
to
the
performance
of
appropriate
markets
by
purchasing
equity
securities,
fixed
income
securities
and/or
derivatives,
which
typically
include
futures
contracts.
This
cash
“equitization”
strategy
is
managed
by
RIM.
With
respect
to
the
portion
of
a
Fund
that
RIM
manages
based
upon
Money
Manager
model
portfolios,
RIM
constructs
a
portfolio
that
represents
the
aggregation
of
the
model
portfolios
based
upon
RIM’s
allocation
to
each
Money
Manager’s
strategy
through
an
“enhanced
portfolio
implementation,”
or
“emulation,”
process
designed
to
capture
return
streams
of
multiple
managers
in
a
centralized
portfolio.
RIM
then
implements
the
portfolio
consistent
with
the
aggregation
of
the
model
portfolios,
but
may
deviate
from
such
aggregation
for
the
purposes
of
exposure
and
transaction
cost
management.
RIM
noted
that
the
Funds
may
benefit
from
emulation
through,
among
other
things,
improved
incremental
returns
over
time
due
to
lower
aggregate
transaction
costs
and
turnover
from
reduced
trading
volumes,
and
that
emulation
provides
more
flexibility
for
enhanced
tax
management.
In
all
cases,
Fund
assets
are
managed
directly
by
RIM
pursuant
to
authority
provided
by
the
RIM
Agreement.
The
Board
noted
the
variety
and
complexity
of
investment
advisory
services
that
RIM
has
provided
to
Funds
under
the
RIM
Agreement.
RIM
is
responsible
for
selecting,
subject
to
Board
approval,
Money
Managers
for
each
Fund
and
for
actively
managing
allocations
and
reallocations
of
its
assets
among
the
Money
Manager
strategies
and
RIM
itself.
Each
discretionary
Money
Manager
for
a
Fund
in
effect
performs
the
function
of
an
individual
portfolio
manager
who
is
responsible
for
selecting
portfolio
securities
for
the
portion
of
the
Fund
assigned
to
it
by
RIM
in
accordance
with
the
Fund’s
applicable
investment
objective,
policies
and
restrictions,
any
specific
parameters
placed
by
RIM
upon
their
selection
of
portfolio
securities
and
the
Money
Manager’s
specified
role
in
a
Fund.
For
each
Fund,
RIM
is
responsible
for,
among
other
things,
providing
each
Money
Manager
with
a
statement
of
the
investment
parameters
and
policies
for
the
Fund
and
any
specific
investment
restrictions;
monitoring
the
performance
of
each
Money
Manager
and
Fund;
generally
supervising
compliance
by
each
Money
Manager
with
each
Fund’s
investment
objective
and
policies;
with
respect
to
Funds
with
non-
discretionary
Money
Managers,
purchasing
and
selling
securities
for
the
Funds
based
on
model
portfolios
representing
the
investment
recommendations
of
the
non-discretionary
Money
Managers;
managing
Fund
assets
that
are
not
allocated
to
Money
Manager
strategies;
managing
the
Funds’
cash
balances;
and
recommending
at
least
annually
to
the
Board
whether
portfolio
management
contracts
should
be
renewed,
modified
or
terminated.
In
addition
to
its
annual
recommendation
as
to
the
renewal,
modification
or
termination
of
portfolio
management
contracts,
RIM
is
responsible
for
recommending
to
the
Board
additions
or
terminations
of
new
Money
Managers
or
replacements
of
existing
Money
Managers
at
any
time
when,
based
on
RIM’s
research
and
ongoing
review
and
analysis,
such
actions
are,
in
RIM’s
judgment,
appropriate.
RIM
may
impose
specific
investment
or
strategy
parameters
from
time
to
time
on
each
Money
Manager
intended
to
capitalize
on
the
strengths
of
that
Money
Manager
or
to
coordinate
the
investment
activities
of
Money
Managers
for
the
Fund
in
a
complementary
manner.
Therefore,
RIM’s
selection
of
Money
Managers
is
made
not
only
on
the
basis
of
performance
considerations
but
also
on
the
basis
of
other
factors,
including
anticipated
compatibility
with
other
Money
Managers
in
the
same
Fund.
In
light
of
the
foregoing,
the
overall
performance
of
each
Fund
has
reflected,
in
great
part,
the
performance
of
RIM
in
designing
the
Fund’s
investment
program,
structuring
the
Fund,
selecting
effective
Money
Managers,
and
allocating
assets
among
the
Money
Manager
strategies
and
RIM
in
a
manner
designed
to
achieve
the
investment
objectives
of
the
Fund.
In
the
Agreement
Evaluation
Information,
RIM
noted
the
broad
array
of
investment
management
services
provided
to
the
Funds
by
RIM
compared
to
the
relatively
narrow
portfolio
management
services
provided
to
the
Funds
by
Money
Managers.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
171
RIM
has
advised
the
Board
that
while
its
portfolio
construction
process
is
“investment
led
and
designed
to
be
conducted
in
a
manner
that
is
consistent
with
its
fiduciary
duties,”
RIM
establishes
a
reasonable
Money
Manager
fee
target
(“Fee
Target”
or
“Fee
Targets”)
for
each
Fund
to
provide
a
cost
framework
for
portfolio
construction.
RIM
in
the
Agreement
Evaluation
Information
advised
the
Board
that
Money
Manager
Fees,
in
the
aggregate,
“must
allow
RIM
to
remain
a
going
concern
with
sufficient
resources
to
provide
required
services
to
the
Funds
and
to
earn
a
reasonable
profit.”
RIM
further
advised
the
Board
that
RIM
portfolio
managers
utilize
a
number
of
tools
in
the
portfolio
construction
process
in
order
to
meet
a
Fund’s
objective
taking
into
account
Fee
Targets.
These
tools
include,
among
others,
Money
Manager
selection,
Money
Manager
allocation,
Money
Manager
fee
negotiations,
guideline
customization
and
Direct
Management
Services
(as
defined
below).
RIM
has
advised
the
Board
that
Fee
Targets
for
particular
Funds
may
be
adjusted
(higher
or
lower)
from
time
to
time.
The
Board
considered
that
the
prospectuses
for
the
Funds
and
other
public
disclosures
have
emphasized,
and
continue
to
emphasize,
to
investors
RIM’s
role
as
the
principal
investment
manager
for
each
such
Fund,
rather
than
the
investment
selection
or
recommendation
role
of
the
Money
Managers,
and
describe
the
manner
in
which
the
Funds
operate
so
that
investors
may
take
that
information
into
account
when
deciding
to
purchase
shares
of
any
Fund.
The
Board
further
considered
that
Fund
investors
in
pursuing
their
investment
goals
and
objectives
likely
purchased
their
shares
on
the
basis
of
this
information
and
RIM’s
reputation
for
and
performance
record
in
managing
the
Funds’
manager-of-managers
structure.
The
Board
also
considered
the
demands
and
complexity
of
managing
the
Funds
pursuant
to
the
manager-of-managers
structure,
the
special
expertise
of
RIM
with
respect
to
the
manager-of-managers
structure
of
the
Funds
and
the
possibility
that,
at
the
current
expense
ratio
of
each
Fund,
there
might
be
no
acceptable
alternative
investment
managers
to
replace
RIM
on
comparable
terms
given
the
need
to
continue
the
manager-of-managers
strategy
of
such
Fund
selected
by
shareholders
in
purchasing
their
shares.
In
addition
to
these
general
factors
relating
to
the
manager-of-managers
structure
of
the
Funds,
the
Trustees
considered,
with
respect
to
each
Fund,
various
specific
factors
in
evaluating
renewal
of
the
RIM
Agreement,
including
the
following:
1.
The
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
by
RIM;
2.
The
Advisory
Fee
paid
by
the
Fund
to
RIM
and
the
fact
that
it
encompasses
all
investment
advisory
fees
paid
by
the
Fund,
including
the
fact
that
RIM
pays
all
Money
Manager
Fees
out
of
its
Advisory
Fee;
3.
Information
provided
by
RIM
as
to
other
fees
and
benefits
received
by
RIM
or
its
affiliates
in
connection
with
the
Fund,
including
any
administrative
or
transfer
agent
fees
and
any
fees
received
for
management
or
administration
of
uninvested
cash
and
securities
lending
cash
collateral,
soft
dollar
arrangements
and
commissions
in
connection
with
portfolio
securities
and
foreign
exchange
transactions;
4.
Information
provided
by
RIM
as
to
expenses
incurred
by
the
Fund;
5.
Information
provided
by
RIM
as
to
the
profits
that
RIM
derives
from
its
mutual
fund
operations
generally
and
from
the
Fund;
and
6.
Information
provided
by
RIM
concerning
economies
of
scale
and
whether
any
scale
economies
are
adequately
shared
with
the
Fund.
In
evaluating
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
which
are
expected
to
be
provided,
to
the
Funds,
including
Fund
portfolio
management
services,
the
Board
discussed
with
senior
representatives
of
Russell
Investments
(as
defined
below)
the
impact
on
the
Funds
of
significant
changes
in
Russell
Investments’
senior
management
and
personnel
providing
investment
management
and
other
services
to
the
Funds
in
the
past
year,
including
the
Chief
Investment
Officer
of
RIM
and
the
Funds.
The
Board
also
discussed
with
senior
representatives
of
Russell
Investments
the
lengthier
implementation
of
changes
to
operational
and
data
infrastructure
supporting
various
services
provided
by
RIM
to
the
Funds,
including
RIM’s
Direct
Management
Services
(as
defined
below)
and
new
and/or
complex
investment
products
or
services
(the
“operational
and
data
infrastructure
initiatives”).
The
Board
also
discussed
the
Funds’
compliance
program
and
certain
items
reported
in
the
annual
report
of
the
Funds’
Chief
Compliance
Officer
(“CCO”)
required
under
Rule
38a-1
of
the
Investment
Company
Act
of
1940,
as
amended
(the
“Annual
Report”)
with
the
CCO
and
RIM’s
senior
management.
In
particular,
the
Board
expressed
its
continuing
concerns
with
respect
to
certain
items
reported
in
the
Annual
Report
relating
to
the
portions
of
Funds
that
are
managed
directly
by
RIM
and
new
and/
or
complex
investment
products
or
services.
The
CCO
and
RIM
senior
management
provided
an
update
on
the
implementation
status
of
the
operational
and
data
infrastructure
initiatives,
noting
that
these
initiatives,
as
well
as
other
changes
already
implemented
and
in
process,
should
address
certain
concerns
posed
by
the
Board
regarding
these
items.
The
CCO
and
RIM
senior
management
advised
the
Board
that
the
Funds’
compliance
program
meets
the
standards
of
Rule
38a-1
under
1940
Act.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
172
Basis
for
Approval
of
Investment
Advisory
Agreement
Since
June
1,
2016,
RIM
has
been
an
indirect
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company
through
which
the
limited
partners
of
certain
private
equity
funds
affiliated
with
TA
Associates
indirectly
have
a
majority
ownership
interest
through
alternative
investment
vehicles
and
the
limited
partners
of
certain
private
equity
funds
affiliated
with
Reverence
Capital
Partners,
L.P.
(“Reverence
Capital”)
indirectly
have
a
significant
minority
controlling
ownership
interest
through
certain
Reverence
Capital
funds
and
alternative
investment
vehicles
in
RIM
and
its
affiliates
(“Russell
Investments”).
In
connection
with
the
Board’s
initial
approval
of
the
RIM
Agreement,
TA
Associates
advised
the
Board
of
its
plans
ultimately
to
effect
a
sale
or
other
disposition
of
its
ownership
interest
in
Russell
Investments.
Any
such
future
transaction
(“Transaction”)
could
cause
a
change
of
control
of
RIM
resulting,
among
other
things,
in
an
assignment
and
termination
of
the
RIM
Agreement,
as
required
by
the
1940
Act,
and
by
the
terms
and
conditions
of
the
RIM
Agreement.
In
the
event
of
a
Transaction,
the
Board
would
be
required
to
consider
the
approval
of
the
terms
and
conditions
of
a
replacement
agreement
(“Successor
Agreement”)
for
the
RIM
Agreement
and
thereafter
to
submit
the
Successor
Agreement
to
each
Fund’s
shareholders
for
approval,
as
required
by
the
1940
Act.
At
the
Agreement
Information
Review
Meeting,
the
Board
met
in
executive
session
with
a
representative
of
TA
Associates,
at
which
the
COO
was
present,
to
discuss,
among
other
things,
the
status
of
its
indirect
investment
in
RIM
and
RIM’s
access
to
sufficient
resources
to
support
its
activities
in
respect
of
the
Funds.
The
Board
was
not
advised
of
any
change
in
TA
Associates’
plans
regarding
its
ownership
interest
in
Russell
Investments.
As
noted
above,
RIM,
in
addition
to
managing
the
investment
of
each
Fund’s
cash,
directly
manages
a
portion
(which
may
represent
a
significant
portion)
of
the
Funds
pursuant
to
the
RIM
Agreement,
the
actual
allocation
of
Fund
assets
among
Money
Manager
strategies
and
RIM
being
determined
from
time
to
time
by
the
RIM
portfolio
manager(s).
The
nature
and
scope
of
RIM’s
direct
management
of
Fund
assets
has
evolved
over
the
past
several
years.
RIM
utilizes
quantitative
and/or
rules-based
processes
and
qualitative
analysis
to
assess
Fund
characteristics
and
invests
in
securities
and
instruments
which
provide
the
desired
exposures
(such
as
volatility,
momentum,
value,
growth,
quality,
capitalization
size,
industry,
sector,
region,
currency,
commodity,
credit
or
mortgage
exposure,
country
risk,
yield
curve
positioning
or
interest
rates).
RIM
may
utilize
tools
such
as
“optimization,”
which
involves
the
analysis
of
tradeoffs
between
various
risk
and
return
factors
as
well
as
turnover
and
transaction
costs,
in
order
to
estimate
optimal
portfolio
positioning.
RIM
may
use
strategies
based
on
indexes,
including
optimized
index
sampling
(strategies
that
seek
to
purchase
a
sampling
of
securities
using
optimization
and
risk
models)
and/or
index
replication.
RIM’s
direct
management
of
assets
for
these
purposes
is
hereinafter
referred
to
as
the
“Direct
Management
Services.”
The
Board
has
been
advised
that,
where
appropriate
in
its
judgment,
RIM
intends
to
continue
exploring
the
possible
expansion
of
its
Direct
Management
Services
whereby
RIM
expects
that
larger
portions
of
certain
Funds
may
be
managed
directly
by
RIM
pursuant
to
the
Direct
Management
Services.
RIM
noted
that
its
portfolio
managers
combine
Money
Manager
strategies
and
RIM
Direct
Management
Services
for
the
Funds
and
precisely
align
Fund
exposures
with
RIM’s
preferred
positioning.
RIM’s
Direct
Management
Services
are
customized
portfolios
directly
managed
by
RIM
for
use
within
the
total
portfolio
of
each
Fund.
These
strategies
are
used
in
conjunction
with
allocations
to
Money
Manager
strategies
to
fully
reflect
RIM’s
strategic
and
dynamic
insights
with
integrated
liquidity
and
risk
management.
The
Board
considered
that
RIM
is
not
required
to
pay
Money
Manager
Fees
to
any
Money
Managers
with
respect
to
assets
for
which
it
provides
Direct
Management
Services
and
that
the
profits
derived
by
RIM
generally
and
from
the
Funds
consequently
may
be
increased,
although
RIM
noted
that
it
may
incur
additional
costs
in
providing
Direct
Management
Services.
RIM
advised
the
Board
that
allocations,
or
increased
allocations,
of
Fund
assets
to
Direct
Management
Services,
together
with
Money
Manager
selection,
allocations
among
Money
Manager
strategies,
renegotiation
of
Money
Manager
Fees
and
changes
in
existing
Money
Manager
assignments
from
discretionary
to
non-discretionary
assignments
where
there
is
a
related
Money
Manager
Fee
reduction
may
reduce
its
costs
of
providing
investment
advisory
services
to
the
Funds,
which
would
benefit
RIM.
The
Board
considered
RIM’s
advice
that
any
such
benefit,
including
any
increased
profits
to
RIM,
ultimately
may
be
partially
offset
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Funds.
The
Board
also
considered
information
provided
by
RIM
as
to
the
potential
benefits
of
the
Direct
Management
Services
to
Funds;
and
the
fact
that
the
aggregate
Advisory
Fees
paid
by
the
Funds
are
not
increased
as
a
result
of
RIM’s
direct
management
of
Fund
assets
as
part
of
the
Direct
Management
Services
or
otherwise.
The
Agreement
Evaluation
Information
outlined
various
changes
that
have
been
implemented
in
the
investment
program
for
the
Funds
in
recent
years,
described
additional
current
and
expected
future
changes
and
described
the
impact
of
the
changes
that
have
been
or
will
be
implemented
in
the
investment
advisory
services
provided
to
the
Funds
by
RIM,
including
the
following:
•
The
Direct
Management
Services
described
above.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
173
•
RIM
advised
the
Board
that,
with
certain
exceptions,
in
2019
it
would
convert
all
remaining
discretionary
equity
Money
Managers
to
non-discretionary
assignments,
thereby
implementing
emulation
for
almost
all
Money
Manager
equity
assignments.
The
Board
considered
the
potential
impacts
described
in
the
Agreement
Evaluation
Information,
both
positive
and
negative,
on
the
Funds
of
emulation.
RIM
noted
that,
in
implementing
emulation
for
Funds,
it
assumes
various
risks,
including
trade
error
risk
as
it
takes
over
responsibility
for
trading.
RIM
generally
effects
Fund
portfolio
transactions
through
an
affiliated
broker
that
receives
commissions
for
effecting
a
portion
of
these
transactions.
According
to
RIM,
the
Funds
pay
the
same
commission
rates
regardless
of
whether
the
affiliate
receives
any
portion
of
the
commission.
•
RIM
advised
the
Board
that,
for
certain
Funds,
it
has
reduced,
and
may
further
reduce,
the
number
of
Money
Managers
in
part
to
seek
more
concentrated
return
drivers.
Additionally,
RIM
advised
the
Board
that,
consistent
with
the
terms
of
the
manager-of-managers
exemptive
order,
it
is
also
creating
manager
“bench”
lineups
for
certain
Funds,
whereby
those
Funds
would
have
approved
Money
Managers
that
are
not
funded
(i.e.
have
an
asset
allocation
of
zero).
As
the
agreements
with
these
bench
Money
Managers
would
already
be
approved
for
a
Fund
by
the
Board
based
on
information
presented
at
the
time
of
approval,
RIM
would
be
able
to
allocate
assets
to
these
Money
Managers
without
proposing
a
new
portfolio
management
contract
for
Board
approval.
RIM
also
advised
the
Board
that
allocations
to
Direct
Management
Services
for
certain
Funds
may
increase
to
accommodate
the
need
for
additional
overall
portfolio
exposure
management
that
may
arise
from
more
concentrated
Money
Manager
lineups.
•
RIM
advised
the
Board
of
its
expectation
that
lower
Money
Manager
Fees
will
continue
to
be
negotiated
with
Money
Managers.
Because
Money
Manager
Fees
are
paid
by
RIM
out
of
its
Advisory
Fee
from
the
Funds,
each
of
the
foregoing
may
benefit
RIM
in
the
form
of
savings
to
RIM
from
reduced
Money
Manager
Fees.
RIM
noted
that
such
benefits
may
be
offset
partially
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
agreed
upon
separately
for
affected
Funds.
In
its
contract
renewal
deliberations,
the
Board
took
into
consideration
the
potential
benefits
to
the
Funds,
described
by
RIM,
of
these
changes
in
their
investment
programs
and
RIM’s
potential
conflicts
of
interest
inherent
in
each
of
these
initiatives
and
considered
that,
while
reporting
procedures
would
provide
some
ability
for
the
Board
to
monitor
the
impact
of
such
conflicts
on
the
Funds
and
the
profitability
of
the
Fund
relationships
to
RIM,
such
reporting
procedures
would
not
eliminate
such
conflicts
of
interest
risks
to
the
Funds.
The
Board
noted
that
changes
in
the
allocation
of
assets
among
Money
Manager
strategies
or
to
Direct
Management
Services
may
result
directly
in
higher
related
costs
to
affected
Funds,
including
higher
brokerage
commissions
and
other
transaction
costs,
a
portion
of
which
is
paid
to
RIM’s
affiliated
broker
in
connection
with
execution
of
portfolio
transactions
in
connection
with
such
changes.
The
Third-Party
Information
included,
among
other
things,
comparisons
of
the
Funds’
Advisory
Fees
with
the
investment
advisory
fees
of
their
Comparable
Funds
on
an
actual
basis
(i.e.,
giving
effect
to
any
voluntary
fee
waivers
implemented
by
RIM
with
respect
to
a
Fund
and
by
the
managers
of
such
Fund’s
Comparable
Funds).
The
Third-Party
Information,
among
other
things,
showed
that
the
RIF
U.S.
Strategic
Equity
Fund,
RIF
U.S.
Small
Cap
Equity
Fund,
RIF
International
Developed
Markets
Fund
and
RIF
Strategic
Bond
Fund
each
had
an
Advisory
Fee
which,
compared
with
the
investment
advisory
fees
of
its
respective
Comparable
Funds
on
an
actual
basis,
was
ranked
in
the
fourth
or
fifth
quintile
of
its
Expense
Universe
for
that
expense
component.
The
Advisory
Fee
for
the
RIF
Global
Real
Estate
Securities
Fund
ranked
in
the
third
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
funds
with
the
lowest
investment
advisory
fees
of
its
comparable
Fund
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
investment
advisory
fees
among
the
Expense
Universe
funds.
The
comparisons
were
based
upon
the
latest
fiscal
years
for
the
Expense
Universe
funds.
RIM
noted
that
in
2019,
based
upon
discussions
with
the
Board,
the
methodology
used
by
the
independent
third-party
to
create
the
Funds’
Expense
Universes
was
changed
from
using
Lipper
investment
classifications
to
Morningstar
categories.
The
Board
considered
RIM’s
explanation
of
the
reasons
for
the
RIF
U.S.
Strategic
Equity,
RIF
U.S.
Small
Cap
Equity,
RIF
International
Developed
Markets
and
RIF
Strategic
Bond
Funds’
actual
Advisory
Fee
rankings
and
its
belief
that
the
Funds’
Advisory
Fees
are
fair
and
reasonable
under
the
circumstances,
notwithstanding
such
comparisons.
Among
other
things,
RIM
noted
that
meaningful
comparisons
of
investment
advisory
fees
between
funds
affiliated
with
insurance
companies
issuing
variable
annuity
and
life
policies
and
non-affiliated
funds,
such
as
the
Funds,
are
difficult
as
insurance
companies
may
allocate
fees
between
the
insurance
contracts
and
their
underlying
funds.
The
Board
considered
that
the
total
expenses
for
these
Funds
were
ranked
in
the
third
quintile
of
its
Expense
Universe.
The
Board
determined
that
it
would
continue
to
monitor
the
Funds’
Advisory
Fees
against
the
Funds’
Comparable
Funds’
investment
advisory
fees.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
174
Basis
for
Approval
of
Investment
Advisory
Agreement
In
discussing
the
Funds’
Advisory
Fees
generally,
RIM
noted,
among
other
things,
that
its
Advisory
Fees
for
the
Funds
encompass
services
that
are
typical
to
services
provided
by
investment
advisers
to
the
Funds’
Comparable
Funds,
as
well
as
unique
services
that
are
distinctly
different
from
those
provided
by
investment
advisers
to
the
Funds’
Comparable
Funds,
such
as
cash
equitization
and
transition
management
efforts
that
enable
efficient
and
cost-effective
asset
transition
events.
RIM
also
advised
the
Board
that
although
its
profitability
generally
and
from
its
relationships
with
the
Funds
improved
in
2018,
its
pre-tax
“margins”
in
providing
investment
advisory
services
to
the
Funds
ranked
below
the
median
of
the
margins
of
public
investment
management
company
peers
based
on
a
survey
conducted
in
2017.
RIM
has
expressed
its
view
that
Advisory
Fees
should
also
be
considered
in
the
context
of
a
Fund’s
total
expense
ratio
to
obtain
a
complete
picture.
The
Board
considers
each
Fund’s
Advisory
Fee
on
both
a
standalone
basis
and
in
the
context
of
the
Fund’s
total
expense
ratio.
The
Board
has
engaged,
and
continues
to
engage
in
discussions
with
RIM
to
identify
opportunities
and
establish
goals,
where
appropriate,
for
improving
the
total
expense
comparisons
for
certain
Funds
relative
to
their
respective
Comparable
Funds
through
Advisory
Fee
waivers
or
expense
caps.
Based
upon
information
provided
by
RIM,
the
Board
considered
for
each
Fund
whether
economies
of
scale
have
been
realized
and
whether
the
Advisory
Fee
for
such
Fund
appropriately
reflects
or
should
be
revised
to
reflect
any
such
economies.
The
Board
considered,
among
other
things,
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Funds
as
well
as
net
Fund
redemptions
or
purchases
in
recent
years.
The
Funds
are
distributed
exclusively
through
variable
annuity
and
variable
life
insurance
contracts
issued
by
insurance
companies.
Currently,
the
Funds
are
made
available
to
holders
of
such
insurance
policies
(“Insurance
Contract
Holders”)
by
a
few
insurance
companies.
The
Funds
are
primarily
available
through,
and
their
assets
are
primarily
attributed
to,
The
Northwestern
Mutual
Life
Insurance
Company
(“Northwestern
Mutual”).
In
November
2018,
Northwestern
Mutual
discontinued
sales
of
the
RIF
International
Developed
Markets
Fund
to
new
Insurance
Contract
Holders
through
its
advisory
channel,
but
this
Fund
is
still
available
to
new
and
existing
Insurance
Contract
Holders
through
Northwestern
Mutual’s
brokerage
channel.
At
the
Agreement
Evaluation
Meeting,
RIM
expressed
its
belief
that
Northwestern
Mutual
does
not
intend
to
discontinue
sales
of
the
other
Funds
to
its
Insurance
Contract
Holders
through
its
advisory
channel.
However,
the
Board
received
no
direct
assurances
in
this
regard
from
Northwestern
Mutual.
If
Northwestern
Mutual
were
to
discontinue
its
participation
in
the
Funds,
the
Board
considered
that
it
is
unlikely
that
the
Funds
would
remain
viable.
RIM
has
advised
the
Board
that,
while
it
is
assessing
other
potential
opportunities,
it
does
not
expect
that
additional
insurance
companies
will
make
the
Funds
available
to
their
variable
annuity
or
variable
life
insurance
policyholders
in
the
near
term.
Notwithstanding
this
expectation,
RIM
expressed
its
belief
that
the
Funds
will
remain
viable
in
the
near
term.
The
Board
considered,
among
other
things,
the
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
variable
annuity
and
variable
life
insurance
policyholders.
The
Board
also
considered
that,
in
the
past
year,
RIM
has
renegotiated
fees
with
certain
Money
Managers
to
lower
levels;
changed
certain
Money
Manager
assignments
from
discretionary
to
non-discretionary;
reallocated
assets
among
Money
Managers;
hired
or
terminated
certain
Money
Managers,
including
in
connection
with
the
implementation
of
an
initiative
to
reduce
the
number
of
Money
Managers
for
each
Fund;
and
increased
its
allocations
to
Direct
Management
Services
for
various
Funds
in
recent
years,
each
of
which
alone
may
operate
to
reduce
RIM’s
costs
of
providing
investment
advisory
and
other
services
to
the
Funds
contemplated
by
the
RIM
Agreement.
The
Board
also
considered
that
any
resulting
benefit
of
the
decrease
in
Money
Manager
Fees
paid
by
RIM
in
respect
of
a
Fund
accrues
to
RIM,
rather
than
such
Fund.
The
Board
also
considered
RIM’s
advice
that
such
benefit
ultimately
may
be
partially
offset
by
any
new
or
additional
fee
waivers
or
expense
caps
on
such
Fund.
With
certain
exceptions,
the
Board
noted
RIM’s
stated
intention
to
convert
all
remaining
discretionary
equity
Money
Managers
to
non-discretionary
assignments
in
2019,
thereby
implementing
emulation
for
almost
all
Money
Manager
equity
assignments.
The
Board
also
considered,
as
a
general
matter,
that
fees
payable
to
RIM
or
its
affiliates
by
institutional
clients
with
investment
objectives
similar
to
those
of
the
Funds
are
lower,
and,
in
some
cases,
may
be
substantially
lower,
than
the
rates
paid
by
the
Funds
and
Other
RIM
Funds.
The
Trustees
considered
the
differences
in
the
nature
and
scope
of
services
RIM
provides
to
institutional
clients
and
the
Funds.
RIM
explained,
among
other
things,
that
institutional
clients
have
fewer
compliance,
administrative
and
other
needs
than
the
Funds.
RIM
also
noted
that
since
the
Funds
must
constantly
issue
and
redeem
their
shares,
they
are
more
difficult
to
manage
than
institutional
accounts,
where
assets
are
relatively
stable.
In
addition,
RIM
noted
that
the
Funds
are
subject
to
heightened
regulatory
requirements
relative
to
institutional
clients.
Accordingly,
the
Trustees
concluded
that
the
services
provided
to
the
Funds
are
sufficiently
different
from
the
services
provided
to
the
other
clients
that
comparisons
are
not
probative
and
should
not
be
given
significant
weight.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
175
With
respect
to
the
Funds’
total
expenses,
the
Third-Party
Information
showed
that
the
total
expenses
for
the
RIF
Global
Real
Estate
Securities
Fund
were
ranked
in
the
second
quintile
of
its
Expense
Universe,
and
the
total
expenses
for
each
of
the
other
Funds
were
ranked
in
the
third
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
the
funds
with
the
lowest
total
expenses
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
total
expenses
among
the
Expense
Universe
funds.
In
the
case
of
many
of
the
aforementioned
Funds,
a
significant
factor
in
the
Fund’s
total
expense
ranking
was
the
Fund’s
Advisory
Fee
when
compared
to
the
investment
advisory
fees
of
other
Comparable
Funds.
On
the
basis
of
the
Agreement
Evaluation
Information,
and
other
information
previously
received
by
the
Board
from
RIM
during
the
course
of
prior
years,
or
presented
at
or
in
connection
with
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting
by
RIM,
the
Board,
in
respect
of
each
Fund,
found,
after
giving
effect
to
any
applicable
waivers
and/or
reimbursements,
and
considering
any
differences
in
the
composition
of
the
Expense
Universe
and
investment
strategies
of
its
respective
Comparable
Funds
and
in
light
of
other
factors
discussed
above:
(1)
the
Advisory
Fee
charged
by
RIM
was
acceptable
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
advisory
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
and
to
provide
continuity
of
investment
advisory
and
other
services
by
RIM
to
the
Funds;
(2)
except
as
noted
above,
the
relative
expense
ratio
of
the
Fund
either
was
comparable
to
those
of
its
Comparable
Funds
or
RIM
had
provided
an
explanation
satisfactory
to
the
Board
as
to
why
the
relative
expense
ratio
was
not
comparable
to
those
of
its
Comparable
Funds;
(3)
other
benefits
and
fees
received
by
RIM
or
its
affiliates
from
the
Fund
identified
in
the
Agreement
Evaluation
Information
were
not
considered
to
be
excessive;
(4)
RIM’s
reported
profitability
with
respect
to
the
Fund
was
not
considered
to
be
excessive
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided
by
RIM
and
applicable
judicial
and
regulatory
guidance;
and
(5)
the
Advisory
Fee
charged
by
RIM
appropriately
reflects
any
economies
of
scale
realized
by
such
Fund
in
light
of
various
factors,
including
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
Insurance
Contract
Holders;
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Fund;
and
RIM’s
advice
that
it
does
not
believe
it
will
experience
meaningful
economies
of
scale.
The
Board
concluded
that,
under
the
circumstances
and
based
on
RIM’s
performance
information
and
reviews
for
each
Fund,
the
performance
of
each
of
the
Funds
is
consistent
with
continuation
of
the
RIM
Agreement.
The
Board
noted
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
In
assessing
the
performance
of
Funds,
the
Board
focused
upon
each
Fund’s
performance
for
the
3-year
period
ended
December
31,
2018
as
most
relevant
but
also
considered
Fund
performance
for
the
1-
and
5-year
periods
ended
such
date.
In
reviewing
the
Funds’
performance
generally,
the
Board
took
into
consideration
various
steps
taken
by
RIM
in
the
past
year
to
enhance
the
performance
of
certain
Funds,
including
changes
in
Money
Managers
or
their
allocations,
and
RIM’s
implementation
or
expansion
of
its
Direct
Management
Services
and
other
strategies,
which
may
not
yet
be
fully
reflected
in
Fund
investment
results.
With
respect
to
the
RIF
U.S.
Strategic
Equity
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
for
the
1-year
and
3-year
periods
ended
December
31,
2018
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe,
and
the
Fund’s
performance
for
the
5-year
period
ended
such
date
was
in
the
fourth
quintile
of
its
Performance
Universe.
According
to
RIM,
factors
contributing
to
the
Fund’s
relative
underperformance
during
the
3-year
period
included
the
Fund’s
tilt
away
from
stocks
with
high
growth
characteristics,
sector
positioning,
particularly
an
overweight
to
the
energy
sector
and
an
underweight
to
the
utilities
sector,
and
negative
stock
selection
within
the
consumer
discretionary,
industrials,
and
health
care
sectors.
The
Board
considered
that
the
changes
in
the
Fund’s
Money
Managers
that
were
implemented
in
May
2018
to
enhance
performance
were
not
yet
fully
reflected
in
the
Fund’s
investment
results.
The
Third-Party
Information
also
showed
that
the
performance
of
the
RIF
International
Developed
Markets
Fund
and
the
RIF
Global
Real
Estate
Securities
Fund
was
ranked
in
the
second
quintile
of
their
respective
Performance
Universes
for
the
3-year
period
ended
December
31,
2018,
and
the
performance
of
the
RIF
U.S.
Small
Cap
Equity
Fund
and
the
RIF
Strategic
Bond
Fund
was
ranked
in
the
third
quintile
of
their
respective
Performance
Universes
for
the
3-year
period
ended
such
date.
In
evaluating
performance,
the
Board
considered
each
Fund’s
performance
not
only
relative
to
its
Comparable
Funds,
but
also
in
absolute
terms
and
relative
to
its
benchmark.
The
Board
considered
the
Funds’
performance
relative
to
their
benchmarks
in
light
of
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
For
the
1-year
period
ended
December
31,
2018,
no
Funds
outperformed
their
benchmarks;
and
for
the
3-year
and
5-year
periods
ended
December
31,
2018,
the
RIF
Global
Real
Estate
Securities
Fund
outperformed
its
benchmark.
The
Board
also
considered
the
Money
Manager
changes
that
have
been
made
during
the
past
year
and
that
the
performance
of
Money
Managers
continues
to
impact
Fund
performance
for
periods
prior
and
subsequent
to
their
termination,
and
that
any
incremental
positive
or
negative
impact
of
the
Direct
Management
Services,
which
continue
to
evolve
in
nature
and
scope,
was
not
yet
fully
reflected
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
176
Basis
for
Approval
of
Investment
Advisory
Agreement
in
the
Fund’s
investment
results.
Lastly,
the
Board
considered
the
implementation
of
additional
strategies
and
refinements
to
strategies
discussed
at
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting
and
prior
Board
meetings
that
may
be
employed
by
RIM
in
respect
of
certain
Funds.
After
considering
the
foregoing
and
other
relevant
factors,
including
factors
described
above,
the
Board
concluded
in
respect
of
each
Fund
that
continuation
of
the
RIM
Agreement
would
be
in
the
interests
of
such
Fund
and
its
shareholders
and
voted
to
approve
the
continuation
of
the
RIM
Agreement.
At
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting,
with
respect
to
the
evaluation
of
the
terms
of
portfolio
management
contracts
with
Money
Managers,
the
Board
received
and
considered
information
from
RIM
reporting,
among
other
things,
for
each
Money
Manager,
the
Money
Manager’s
performance
over
various
periods;
RIM’s
assessment
of
the
performance
of
each
Money
Manager;
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Funds’
underwriter;
and
RIM’s
recommendation
to
retain
each
discretionary
or
non-discretionary
Money
Manager
on
the
current
terms
and
conditions,
including
at
the
current
fee
rate.
The
Board
received
reports
during
the
course
of
the
year
from
the
Funds’
CCO
regarding
her
assessments
of
Money
Manager
compliance
programs
and
any
compliance
issues.
RIM
did
not
identify
any
benefits
from
the
Funds’
portfolio
transactions
received
by
Money
Managers
or
their
affiliates
other
than
benefits
from
their
soft
dollar
arrangements
or
commissions
paid
to
any
affiliated
broker-dealer
through
which
a
Money
Manager
may
execute
trades.
The
Agreement
Evaluation
Information
described
RIM’s
oversight
of
Money
Manager
soft
dollar
arrangements.
The
Agreement
Evaluation
Information
expressed
RIM’s
belief
that,
based
upon
certifications
from
Money
Managers
and
pre-hire
and
ongoing
reviews
of
Money
Manager
soft
dollar
arrangements,
policies
and
procedures,
the
Money
Managers’
soft
dollar
arrangements,
the
policies
and
procedures
are
consistent
with
applicable
legal
standards
and
with
disclosures
made
by
Money
Managers
in
their
investment
adviser
registration
statements
filed
with
the
Securities
and
Exchange
Commission
and
by
the
Funds
in
their
registration
statements.
The
Board
was
advised
that,
in
the
case
of
discretionary
Money
Managers
using
soft
dollar
arrangements,
the
CCO
may
from
time
to
time
request
that
Money
Managers
provide
information
regarding
their
soft
dollar
program
to
RIM.
The
CCO
and
RIM
do
not
obtain,
and
the
Agreement
Evaluation
Information
therefore
did
not
include,
information
regarding
the
value
of
soft
dollar
benefits
derived
by
Money
Managers
from
Fund
portfolio
transactions.
RIM
recommended
that
each
of
the
Money
Managers
be
retained
for
its
current
discretionary
or
non-discretionary
assignment
at
its
current
fee
rate.
In
doing
so,
RIM,
as
it
has
in
the
past,
advised
the
Board
that
it
does
not
regard
Money
Manager
profitability
as
relevant
to
its
evaluation
of
the
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
is
aware
of
the
standard
fee
rates
charged
by
Money
Managers
to
other
clients;
and
RIM
believes
that
the
fees
agreed
upon
with
Money
Managers
are
reasonable
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered.
The
Board
accepted
RIM’s
explanation
of
the
relevance
of
Money
Manager
profitability
in
light
of
RIM’s
belief
that
such
fees
are
reasonable;
the
Board’s
findings
as
to
the
acceptability
of
the
Advisory
Fee
paid
by
each
Fund;
and
the
fact
that
each
Money
Manager’s
fee
is
paid
by
RIM.
At
the
Agreement
Evaluation
Meeting,
RIM
reported
that
it
planned
to
recommend
to
the
Board
at
the
May
20-21,
2019
meeting
the
appointment
and
termination
of
certain
Money
Managers,
changes
from
discretionary
to
non-discretionary
assignments
for
certain
Money
Managers,
and
changes
to
the
fee
schedules
charged
by
certain
Money
Managers.
Based
upon
RIM’s
recommendations,
together
with
relevant
Agreement
Evaluation
Information,
the
Board
concluded
that
the
fees
paid
to
the
Money
Managers
of
each
Fund
are
acceptable
in
light
of
RIM’s
assessment
of
quality
of
the
investment
advisory
services
provided
and
that
continuation
of
the
portfolio
management
contract
with
each
Money
Manager
of
each
Fund
would
be
in
the
interests
of
the
Fund
and
its
shareholders.
*
*
*
In
their
deliberations,
the
Trustees
did
not
identify
any
particular
information
as
to
the
RIM
Agreement
or,
other
than
RIM’s
recommendation,
the
portfolio
management
contract
with
any
Money
Manager
that
was
all-important
or
controlling,
except,
in
the
case
of
the
RIM
Agreement,
the
need
to
continue
the
managers-of-managers
structure
of
the
Funds
and
each
Trustee
attributed
different
weights
to
the
various
factors
considered.
The
Trustees
evaluated
all
information
available
to
them
on
a
Fund-by-Fund
basis
and
their
determinations
were
made
in
respect
of
each
Fund.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
177
Approval
of
Money
Manager
Contracts
with
Jackson
Square
Partners
LLC
Section
15
of
the
1940
Act
generally
requires,
among
other
things,
that
the
Board,
including
a
majority
of
the
Independent
Trustees
voting
separately,
approve
in-person
for
an
initial
term
not
to
exceed
two
years
and,
thereafter,
approve
in-person
on
at
least
an
annual
basis
the
continuation
of
the
RIM
Agreement
and,
in
the
case
of
Manager-of-Managers
Funds,
the
portfolio
management
contract
with
each
money
manager
of
the
Manager-of-Managers
Funds
(collectively,
the
“portfolio
management
contracts”),
and
that
the
terms
and
conditions
of
the
RIM
Agreement
and
the
terms
and
conditions
of
each
portfolio
management
contract
provide
for
its
termination
if
continuation
is
not
approved
annually.
Rule
15a-4(b)(1)
under
the
1940
Act
(“Rule
15a-4”)
provides
an
exception
from
the
requirements
of
Section
15
to
permit
a
person
to
serve
as
an
investment
adviser
(or
subadviser)
to
a
fund
pursuant
to
an
interim
advisory
agreement
(or
subadvisory
agreement)
if
the
following
conditions
are
met:
a.
the
previous
agreement
was
terminated
by:
(i)
the
board
of
trustees
or
the
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
registered
investment
company,
(ii)
a
failure
to
renew
the
previous
agreement,
or
(iii)
an
assignment
in
which
the
investment
adviser
(or
subadviser)
or
a
controlling
person
of
the
investment
adviser
(or
subadviser)
does
not
directly
or
indirectly
receive
money
or
other
benefit;
b.
the
compensation
to
be
received
under
the
interim
agreement
is
no
greater
than
the
compensation
the
adviser
(or
subadviser)
would
have
received
under
the
previous
agreement;
c.
the
interim
agreement
has
a
term
no
greater
than
150
days
following
the
date
the
previous
agreement
was
terminated;
and
d.
the
fund’s
board
of
trustees,
including
a
majority
of
the
independent
trustees,
has
approved
the
interim
agreement
within
10
business
days
after
the
termination
of
the
previous
agreement
at
a
meeting
in
which
trustees
may
participate
by
any
means
of
communication
that
allow
all
trustees
participating
to
hear
each
other
simultaneously
during
the
meeting.
In
evaluating
approval
or
continuation
of
portfolio
management
contracts
pursuant
to
Section
15,
the
Board
considers
that
Manager-
of-Managers
Funds,
in
employing
a
manager-of-managers
method
of
investment,
operate
in
a
manner
that
is
different
from
most
other
investment
companies.
In
the
case
of
most
other
investment
companies,
an
investment
advisory
fee
is
paid
by
the
investment
company
to
its
adviser
which
in
turn,
employs
and
compensates
individual
portfolio
managers
to
make
specific
securities
selections
consistent
with
the
adviser’s
style
and
investment
philosophy.
In
the
case
of
the
Manager-of-Managers
Funds,
RIM,
however,
has
engaged
multiple
unaffiliated
money
managers
whereby
an
advisory
fee
is
paid
by
the
Manager-of-Managers
Fund
to
RIM
which
in
turn
compensates
the
money
manager
firms.
A
money
manager
may
have
(1)
a
discretionary
asset
management
assignment
pursuant
to
which
it
is
allocated
a
portion
of
a
Manager-of-Managers
Fund’s
assets
to
manage
directly
in
its
discretion;
(2)
a
non-discretionary
assignment
pursuant
to
which
it
provides
a
model
portfolio
to
RIM
representing
its
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
a
Manager-of-Managers
Fund;
or
(3)
both
a
discretionary
and
a
non-discretionary
assignment.
The
Board
considers
that
RIM
(rather
than
any
money
manager)
is
responsible
under
the
investment
advisory
agreement
for
determining,
implementing
and
maintaining
the
investment
program
for
the
Manager-of-Managers
Funds.
Although
RIM
traditionally
has
managed
Fund
exposures
through
the
selection
of
and
allocations
to
money
managers,
innovations
in
RIM
portfolio
management
techniques
together
with
evolutions
in
available
technology,
tools
and
analytics
have
resulted
in
changes
in
RIM’s
approach
to
its
Fund
investment
advisory
services.
In
this
regard,
assets
of
each
Manager-of-Managers
Fund
generally
have
been
allocated
among
RIM
and
the
multiple
money
manager
strategies
selected
by
RIM,
subject
to
Board
approval,
for
that
Fund.
RIM
manages
the
investment
of
each
Manager-of-
Managers
Fund’s
cash
and
also
may
manage
directly
any
portion
of
each
Manager-of-Managers
Fund’s
assets
that
RIM
determines
not
to
allocate
to
the
money
manager
strategies
and
portions
of
a
Manager-of-Managers
Fund
during
transitions
between
money
managers.
The
Manager-of-Managers
Funds
usually,
but
not
always,
pursue
a
strategy
to
be
fully
invested
by
exposing
all
or
a
portion
of
their
cash
to
the
performance
of
appropriate
markets
by
purchasing
equity
securities,
fixed
income
securities
and/or
derivatives,
which
typically
include
futures
contracts.
This
cash
“equitization”
strategy
is
managed
by
RIM.
In
the
case
of
non-discretionary
money
manager
assignments,
RIM
itself
manages
portions
of
a
Manager-of-Managers
Fund
based
upon
model
portfolios
provided
by
the
non-discretionary
money
managers.
In
the
case
of
non-discretionary
money
manager
assignments
for
equity
funds,
RIM
implements
model
equity
portfolios
through
an
“enhanced
portfolio
implementation,”
or
“emulation,”
process
designed
to
reduce
trades
and
lower
turnover,
and
provide
more
flexibility
to
manage
tax
impacts
of
trades.
In
all
cases,
Manager-of-Managers
Fund
assets
are
managed
directly
by
RIM
pursuant
to
authority
provided
by
the
RIM
Agreement.
RIM
is
responsible
for
selecting,
subject
to
Board
approval,
money
managers
for
each
Manager-of-Managers
Fund
and
for
actively
managing
allocations
and
reallocations
of
assets
among
the
money
managers’
strategies
and
RIM
itself.
Each
discretionary
money
manager
for
a
Manager-of-Managers
Fund
in
effect
performs
the
function
of
an
individual
portfolio
manager
who
is
responsible
for
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
178
Basis
for
Approval
of
Investment
Advisory
Agreement
selecting
portfolio
securities
for
the
portion
of
the
Manager-of-Managers
Fund
assigned
to
it
by
RIM
(each,
a
“segment”)
in
accordance
with
the
Manager-of-Managers
Fund’s
applicable
investment
objective,
policies
and
restrictions,
any
specific
parameters
placed
by
RIM
upon
their
selection
of
portfolio
securities
and
the
money
manager’s
specified
role
in
a
Manager-of-Managers
Fund.
For
each
Manager-of-Managers
Fund,
RIM
is
responsible
for,
among
other
things,
providing
each
money
manager
with
a
statement
of
the
investment
parameters
and
policies
for
the
assets
allocated
to
it
and
any
specific
investment
restrictions;
monitoring
the
performance
of
each
money
manager
and
Fund;
generally
supervising
compliance
by
each
money
manager
with
each
Fund’s
investment
objective
and
policies;
with
respect
to
Funds
with
non-discretionary
money
managers,
purchasing
and
selling
securities
for
the
Funds
based
on
model
portfolios
representing
the
investment
recommendations
of
the
non-discretionary
money
managers;
managing
Fund
assets
that
are
not
allocated
to
money
manager
strategies;
managing
the
Funds’
cash
balances;
and
recommending
at
least
annually
to
the
Board
whether
portfolio
management
contracts
should
be
renewed,
modified
or
terminated.
In
addition
to
its
annual
recommendation
as
to
the
renewal,
modification
or
termination
of
portfolio
management
contracts,
RIM
is
responsible
for
recommending
to
the
Board
additions
or
terminations
of
money
managers
or
replacements
of
existing
money
managers
at
any
time
when,
based
on
RIM’s
research
and
ongoing
review
and
analysis,
such
actions
are,
in
RIM’s
judgment,
appropriate.
RIM
may
impose
specific
investment
or
strategy
parameters
from
time
to
time
for
each
money
manager
intended
to
capitalize
on
the
strengths
of
that
money
manager
or
to
coordinate
the
investment
activities
of
money
managers
for
the
Manager-of-Managers
Fund
in
a
complementary
manner.
Therefore,
RIM’s
selection
of
money
managers
is
made
not
only
on
the
basis
of
performance
considerations
but
also
on
the
basis
of
other
factors,
including
anticipated
compatibility
with
other
money
managers
in
the
same
Manager-of-Managers
Fund.
In
light
of
the
foregoing,
the
overall
performance
of
each
Manager-of-Managers
Fund
has
reflected,
in
great
part,
the
performance
of
RIM
in
designing
the
Manager-of-Managers
Fund’s
investment
program,
structuring
the
Manager-of-Managers
Fund,
selecting
effective
money
managers
on
a
discretionary
or
non-
discretionary
basis,
and
allocating
assets
among
the
money
managers
or
their
strategies
and
RIM
in
a
manner
designed
to
achieve
the
investment
objectives
of
the
Manager-of-Managers
Fund.
The
Board
considers
that
the
prospectus
for
each
Manager-of-Managers
Fund
and
other
public
disclosures
emphasize
to
investors
RIM’s
role
as
the
principal
investment
manager
for
the
Manager-of-Managers
Fund,
rather
than
the
investment
selection
or
recommendation
role
of
the
Manager-of-Managers
Fund’s
money
managers,
and
describe
the
manner
in
which
the
Manager-of-Managers
Fund
operates
so
that
investors
may
take
that
information
into
account
when
deciding
to
purchase
shares
of
the
Manager-of-Managers
Fund.
At
a
special
meeting
held
by
conference
call
on
January
9,
2019
(the
“January
9
Meeting”),
RIM
informed
the
Board
that
Suffolk
Capital
Management,
LLC
(“Suffolk”),
a
discretionary
money
manager
for
the
RIF
U.S.
Strategic
Equity
Fund
(the
“Affected
Fund”),
unexpectedly
had
notified
RIM
on
January
2,
2019
that
Suffolk
would
cease
operations
on
January
31,
2019,
thereby
effectively
terminating
its
discretionary
portfolio
management
agreement
with
the
Affected
Fund
(the
“Suffolk
Agreement”)
on
that
date.
On
an
informational
conference
call
on
January
29,
2019
(the
“January
29
Call”),
RIM
provided
the
Board
with
an
update
on
Suffolk’s
plan
to
cease
operations
and
reported
that
RIM
would
recommend
that
the
Board
approve
a
new
non-discretionary
portfolio
management
agreement
(the
“New
Agreement”)
for
the
Affected
Fund
with
Jackson
Square
Partners
LLC
(“Jackson
Square”)
at
a
special
Board
meeting
scheduled
to
be
held
in
person
on
February
11,
2019
(the
“Special
Meeting”).
RIM
reported
that
effective
January
31,
2019,
upon
the
termination
of
the
Suffolk
Agreement,
RIM
would
take
control
of
the
portions
of
the
Affected
Fund’s
assets
that
had
been
allocated
to
Suffolk
(the
“Suffolk
Sleeve”),
and,
while
retaining
the
portfolio
investments
in
the
Suffolk
Sleeve
pending
Board
consideration
of
the
New
Agreement
at
the
Special
Meeting,
RIM
in
the
interim
would
monitor
and
manage
total
risk
and
liquidity
in
the
Affected
Fund,
while
seeking
to
capitalize
on
opportunities
embedded
in
the
Affected
Fund’s
Suffolk
Sleeve
as
it
deemed
appropriate.
Due
to
unforeseen
adverse
weather
conditions
which
affected
travel
to
the
meeting
location,
the
Special
Meeting,
which
had
been
scheduled
to
be
an
in-person
meeting,
instead
was
held
by
conference
telephone
call
pursuant
to
which
all
persons
participating
in
the
meeting
could
hear
each
other
simultaneously.
At
the
Special
Meeting,
the
Board,
reflecting
the
change
in
the
Special
Meeting
from
an
in-person
meeting
to
a
conference
call
meeting,
received
a
proposal
from
RIM
to
enter
into
an
interim
non-discretionary
portfolio
management
agreement
with
Jackson
Square
for
the
Affected
Fund
(the
“Interim
Agreement”).
RIM
advised
the
Board
that
Suffolk’s
momentum
investment
strategy
had
a
shorter-term
horizon
with
a
higher
relative
turnover
and
a
more
concentrated
portfolio,
and
that,
without
implementation
of
the
Interim
Agreement,
the
assets
in
the
Suffolk
Sleeve
would
be
at
risk
of
issuer
and/or
market
developments
during
the
period
from
the
Special
Meeting
to
the
Board’s
consideration
of
the
New
Agreement
at
the
next
quarterly
in-person
Board
meeting
(the
“Interim
Period”).
To
provide
suitable
portfolio
management
services
with
respect
to
the
Suffolk
Sleeve
assets
and
continuity
in
the
Affected
Fund’s
overall
investment
programs
during
the
Interim
Period,
RIM
expressed
its
belief
that
implementation
of
the
Interim
Agreement
would
be
in
the
best
interests
of
the
Affected
Fund
and
its
shareholders.
RIM
advised
the
Board
that
at
the
next
quarterly
Board
meeting,
scheduled
to
be
held
in
person
on
February
26,
2019
(the
“Quarterly
Board
Meeting”),
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
179
RIM
would
submit
the
Interim
Agreement
for
the
Board’s
ratification
and
approval,
and
submit
the
New
Agreement,
to
replace
the
Interim
Agreement,
for
the
Board’s
consideration.
Of
the
Affected
Fund’s
assets
allocated
to
money
managers
or
a
separate
RIM
direct
management
account
(i.e.
not
including
assets
in
the
liquidity
reserve
account
managed
directly
by
RIM,
which
may
constitute
5%
or
more
of
assets
at
any
given
time),
at
the
time
of
the
Special
Meeting,
the
target
allocation
of
assets
(1)
to
the
Suffolk
Sleeves
was
20%
and
(2)
to
a
separate
RIM
direct
management
account
was
20%.
RIM’s
proposal
to
implement
the
Interim
Agreement
during
the
Interim
Period
and
to
submit
the
New
Agreement
for
consideration
by
the
Board
at
the
in-person
Quarterly
Board
Meeting
reflected
the
conditions
of
Rule
15a-4
for
temporary
relief
from
the
in-person
meeting
requirements
applicable
to
Board
approval
of
portfolio
management
agreements
under
Section
15.
RIM
advised
the
Board,
among
other
things,
that
its
proposal
did
not
satisfy
all
conditions
for
reliance
on
Rule
15a-4
but
was
substantially
consistent
with
such
conditions
to
the
extent
practicable
under
the
circumstances,
served
the
purposes
underlying
Rule
15a-4
and
did
not
raise
concerns
addressed
by
Section
15,
and
was
in
the
best
interests
of
the
Affected
Fund
and
its
shareholders.
In
this
regard,
RIM
stated:
e.
the
compensation
payable
to
Jackson
Square
under
the
Interim
Agreement
would
be
no
greater
than
the
compensation
Suffolk
would
have
received
under
the
Suffolk
Agreement;
f.
the
Interim
Agreement
would
remain
in
effect
for
no
longer
than
150
days
following
the
date
the
Suffolk
Agreement
was
terminated;
and
g.
the
Board,
including
a
majority
of
the
Independent
Trustees,
was
being
asked
to
approve
the
Interim
Agreement
within
10
business
days
after
the
termination
of
the
Suffolk
Agreement
at
the
Special
Meeting
in
which
Trustees
were
participating
by
conference
call
that
allowed
all
Trustees
participating
to
hear
each
other
simultaneously
during
the
Special
Meeting.
The
Trustees
approved
the
Interim
Agreement
based
substantially
on
RIM’s
recommendation
and
advice
that
the
Interim
Agreement
was
needed
to
provide
suitable
portfolio
management
services
with
respect
to
the
assets
in
the
Suffolk
Sleeve
and
continuity
in
the
Affected
Fund’s
overall
investment
program
during
the
Interim
Period.
The
Board
considered
RIM’s
advice
that,
due
to
the
nature
of
Suffolk’s
strategy
and
portfolio,
continuing
retention
of
the
investments
in
the
Suffolk
Sleeve
for
the
Interim
Period
could
result
in
significant
disruption
to
the
Affected
Fund’s
investment
program,
especially
in
the
event
of
issuer
and/or
market
developments,
and,
potentially,
serious
consequences
to
Affected
Fund
and
its
shareholders.
In
addition
to
the
reasons
advanced
by
RIM
to
implement
the
Interim
Agreement,
the
Trustees’
evaluation
of
the
Interim
Agreement
for
the
Affected
Fund
also
reflected
information
as
to
Jackson
Square’s
role
in
the
management
of
the
Affected
Fund’s
investment
portfolio
(including
the
amount
of
Fund
assets
to
be
managed
pursuant
to
Jackson
Square’s
strategy)
and
RIM’s
evaluation
of
the
anticipated
quality
of
the
non-discretionary
investment
advisory
services
to
be
provided
by
Jackson
Square;
confirmation
by
RIM
that
there
were
no
significant
business
relationships
between
Jackson
Square
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Affected
Fund’s
underwriter;
the
CCO’s
evaluation
of
Jackson
Square’s
compliance
program,
policies
and
procedures
in
relation
to
Jackson
Square’s
role
in
the
management
of
the
Affected
Fund’s
investment
portfolio,
and
certification
by
the
CCO
that
they
were
consistent
with
applicable
regulatory
standards;
RIM’s
explanation
as
to
the
lack
of
relevance
of
Jackson
Square’s
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
Jackson
Square
to
other
clients;
RIM’s
belief
that
the
proposed
Jackson
Square
fees
would
be
reasonable
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered;
the
decrease
in
aggregate
money
manager
fees
to
be
paid
by
RIM
from
its
advisory
fee
as
a
result
of
the
engagement
of
Jackson
Square
pending
the
Board’s
consideration
of
the
New
Agreement;
and
the
expected
costs
of
transitioning
Fund
assets
to
Jackson
Square’s
strategy.
RIM
confirmed
that
no
money
manager
fees
under
the
Interim
Agreement
would
be
payable
to
Jackson
Square
during
the
Interim
Period.
At
the
in
person
Quarterly
Board
Meeting,
the
Board
received
proposals
from
RIM
to
(i)
ratify
and
approve
the
Interim
Agreement,
and
(ii)
approve
the
New
Agreement
to
replace
the
Interim
Agreement.
RIM
noted
that,
with
the
exception
of
the
term
of
the
agreements
and
certain
non-material
changes
of
a
clarifying
nature
to
be
made,
the
terms
and
conditions
of
the
New
Agreement
were
the
same
in
all
material
respects
to
the
Interim
Agreement.
The
Trustees
ratified
and
approved
the
Interim
Agreement
and
approved
the
terms
of
the
New
Agreement,
including
the
proposed
fee
rate
thereunder,
based
upon
RIM’s
recommendation.
The
Trustees’
approval
of
the
New
Agreement
reflected
the
Board’s
familiarity
with
the
Affected
Fund
and
information
received
and
discussed
at
the
January
9
Meeting,
the
January
29
Call
and
the
Special
Meeting,
and
findings
made
at
the
Special
Meeting,
in
connection
with
their
evaluation
and
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
180
Basis
for
Approval
of
Investment
Advisory
Agreement
approval
of
the
Interim
Agreement.
The
Trustees’
approval
also
reflected
their
findings
at
prior
meetings,
including
their
May
21,
2018
meeting
in
connection
with
their
evaluation
and
approval
of
the
Affected
Fund’s
existing
investment
advisory
agreement
with
RIM
and
then
current
money
managers
for
the
Affected
Fund,
as
well
as
information
received
throughout
the
course
of
the
year
regarding,
among
other
things,
the
quality
of
services
provided
to
the
Affected
Fund
in
the
case
of
existing
money
managers
and
the
reasonableness
of
the
aggregate
investment
advisory
fees
paid
by
the
Affected
Fund,
as
well
as
the
fact
that
the
aggregate
investment
advisory
fees
paid
by
the
Affected
Fund
would
not
increase
or
decrease
as
a
result
of
the
implementation
of
the
Interim
or
New
Agreements
because
Jackson
Square’s
investment
advisory
fees
are
paid
by
RIM.
Quarterly
Approval
of
Money
Manager
Contracts
Subsequent
to
the
Agreement
Evaluation
Meeting,
the
Board
received
proposals
at
a
meeting
held
on
May
21,
2019
to
approve
new
portfolio
management
contracts
for
certain
existing
Money
Managers
of
the
Global
Real
Estate
Securities
and
U.S.
Small
Cap
Equity
Funds.
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
May
20,
2019
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.
Russell
Investment
Funds
Shareholder
Requests
for
Additional
Information
—
June
30,
2019
(Unaudited)
Shareholder
Requests
for
Additional
Information
181
Each
Fund
files
portfolio
holdings
information
within
60
days
after
the
end
of
each
fiscal
quarter
as
an
exhibit
on
Form
N-PORT.
Portfolio
holdings
information
for
the
third
month
of
each
fiscal
quarter
is
publicly
available
on
the
SEC’s
website
at
http://www.sec.
gov.
Each
Fund’s
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
quarters
of
each
fiscal
year
is
included
in
the
semi-
annual
and
annual
reports
to
Fund
shareholders.
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,
2018
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.
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers
—
June
30,
2019
(Unaudited)
182
Disclosure
of
Information
about
Fund
Trustees
and
Officers
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”;
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;
Ms.
Dien
Ledoux
has
had
investment
experience
as
a
portfolio
manager
and
has
had
experience
as
a
member
of
the
board
of
trustees
of
other
investment
companies;
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;
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;
and
Mr.
Zeschin
has
had
business,
financial
and
investment
experience
as
founder
and
partner
of
an
independent
investment
counsel
and
wealth
management
firm
serving
individuals
and
family
entities
with
substantial
assets,
and
as
a
member
of
the
board
of
another
investment
company.
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,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
INTERESTED
TRUSTEE
Mark
Spina,
#
Born
June
8,
1970
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2017
President
and
Chief
Executive
Officer
since
2017
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
chosen
and
qualified
by
Trustees
President
and
CEO,
RIC
and
RIF
Chairman
of
the
Board,
President,
Russell
Investments
Financial
Services,
LLC
(“RIFIS”)
Chairman
of
the
Board,
President,
Russell
Investments
Fund
Services,
LLC
(“RIFUS”)
Director,
RIM.
From
2015-2016,
Head
of
Intermediary
Distribution
and
President
of
Pioneer
Funds
Distributor
From
2008-2015
Head
of
Intermediary
Distribution,
Voya
Investment
Management
43
None
INDEPENDENT
TRUSTEES
Thaddas
L.
Alston,
Born
April
7,
1945
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2006
Appointed
until
successor
is
duly
elected
and
qualified
Senior
Vice
President,
Larco
Investments,
Ltd.
(real
estate
firm)
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
183
*
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.
Name,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
INDEPENDENT
TRUSTEES
(continued)
Kristianne
Blake,
Born
January
22,
1954
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2000
Chairman
since
2005
Appointed
until
successor
is
duly
elected
and
qualified
Approved
annually
Lead
Independent
Director,
Avista
Corp
(electric
utilities)
Until
May
2017,
Director
and
Chairman
of
the
Audit
Committee,
Avista
Corp
(electric
utilities)
Until
September
2018,
Regent,
University
of
Washington
President,
Kristianne
Gates
Blake,
P.S.
(accounting
services)
Until
June
2014,
Director,
Ecova
(total
energy
and
sustainability
management)
43
Lead
Independent
Director,
Avista
Corp
(electric
utilities)
Until
May
2017,
Director
Avista
Corp
(electric
Utilities)
Until
June
2014,
Director,
Ecova
(total
energy
and
sustainability
management)
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2019
(Unaudited)
184
Disclosure
of
Information
about
Fund
Trustees
and
Officers
Name,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
INDEPENDENT
TRUSTEES
(continued)
Cheryl
Burgermeister,
Born
June
26,
1951
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2012
Chairman
of
the
Audit
Committee
since
2017
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
duly
elected
and
qualified
Retired
Trustee
and
Chairperson
of
Select
Sector
SPDR
Funds
(investment
company)
Until
December
31,
2014,
Chairperson
of
Audit
Committee,
Select
Sector
SPDR
Funds
(investment
company)
43
Trustee
and
Chairperson
of
Select
Sector
SPDR
Funds
(investment
company)
From
August
2012
through
May
2016,
Trustee,
ALPS
Series
Trust
(investment
company)
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Katherine
W.
Krysty,
Born
December
3,
1951
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2014
Appointed
until
successor
is
duly
elected
and
qualified
Retired
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Julie
Dien
Ledoux,
Born
August
17,
1969
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2019
Appointed
until
successor
is
duly
elected
and
qualified
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
43
Until
March
2018,
Trustee,
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017
Trustee,
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
185
*
Each
Trustee
is
subject
to
mandatory
retirement
at
age
75.
Name,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
INDEPENDENT
TRUSTEES
(continued)
Raymond
P.
Tennison,
Jr.,
Born
December
21,
1955
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2000
Chairman
of
the
Nominating
and
Governance
Committee
since
2007
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
duly
elected
and
qualified
Retired
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Jack
R.
Thompson,
Born
March
21,
1949
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2005
Chairman
of
the
Investment
Committee
since
2015
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
duly
elected
and
qualified
Retired
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Jonathan
F.
Zeschin
Born
September
4,
1953
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2019
Appointed
until
successor
is
duly
elected
and
qualified
Founder
and
Partner,
Essential
Investment
Partners,
LLC
(investment
company)
43
Independent
Trustee
(since
2007)
and
Board
Chair
(since
2014),
Matthews
Asia
Funds
Name,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
TRUSTEE
EMERITUS
George
F.
Russell,
Jr.,
Born
July
3,
1932
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
Emeritus
and
Chairman
Emeritus
since
1999
Until
resignation
or
removal
Director
Emeritus,
RIM
43
None
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2019
(Unaudited)
186
Disclosure
of
Information
about
Fund
Trustees
and
Officers
Name,
Age,
Address
Positions(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
Principal
Occupation(s)
During
the
Past
5
Years
OFFICERS
Mark
Spina,
Born
June
8,
1970
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
President
and
Chief
Executive
Officer
since
2017
Until
successor
is
chosen
and
qualified
by
Trustees
President
and
Chief
Executive
Officer,
RIC
and
RIF
Chairman
of
the
Board,
President,
RIFIS
Chairman
of
the
Board,
RIFUS
Director,
RIM
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,
Born
December
16,
1966
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Chief
Compliance
Officer
since
2005
Until
removed
by
Independent
Trustees
Chief
Compliance
Officer,
RIC
and
RIF
Chief
Compliance
Officer,
RIFUS
2011
to
2016
Chief
Compliance
Officer,
U.S.
One
,
LLC
Mark
E.
Swanson,
Born
November
26,
1963
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Treasurer,
Chief
Accounting
Officer
and
Chief
Financial
Officer
since
1998
Until
successor
is
chosen
and
qualified
by
Trustees
Global
Head
of
Fund
Services,
Russell
Investments
Treasurer,
Chief
Accounting
Officer
and
CFO,
RIC
and
RIF
Director
and
President,
RIFUS
Director
RIM,
Russell
Investments
Trust
Company
(“RITC”)
and
RIFIS
President
and
Chief
Executive
Officer,
RIC
and
RIF,
June
2016
to
June
2017
Peter
Gunning,
Born
February
22,
1967
1301
Second
Avenue,
18th
Floor,
Seattle
WA
98101
Chief
Investment
Officer
since
2018
Until
removed
by
Trustees
Global
Chief
Investment
Officer,
Russell
Investments
Chief
Investment
Officer,
RIC
and
RIF
Chief
Investments
Officer,
Asia
Pacific,
Russell
Investments
President,
RIM
Mary
Beth
R.
Albaneze,
Born
April
25,
1969
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Secretary
since
2010
Until
successor
is
chosen
and
qualified
by
Trustees
Associate
General
Counsel,
Russell
Investments
Secretary,
RIM,
RIFUS
and
RIFIS
Secretary
and
Chief
Legal
Officer,
RIC
and
RIF
Assistant
Secretary,
U.S.
One,
LLC
Russell
Investment
Funds
Adviser,
Money
Managers
and
Service
Providers
—
June
30,
2019
(Unaudited)
Adviser,
Money
Managers
and
Service
Providers
187
Interested
Trustee
Mark
Spina
Independent
Trustees
Thaddas
L.
Alston
Kristianne
Blake
Cheryl
Burgermeister
Katherine
W.
Krysty
Julie
Dien
Ledoux
Raymond
P.
Tennison,
Jr.
Jack
R.
Thompson
Jonathan
F.
Zeschin
Trustee
Emeritus
George
F.
Russell,
Jr.
Officers
Mark
Spina,
President
and
Chief
Executive
Officer
Mark
E.
Swanson,
Treasurer,
Chief
Accounting
Officer
and
Chief
Financial
Officer
Cheryl
Wichers,
Chief
Compliance
Officer
Peter
Gunning,
Chief
Investment
Officer
Mary
Beth
R.
Albaneze,
Secretary
Adviser
Russell
Investment
Management,
LLC
1301
Second
Avenue
Seattle, WA
98101
Administrator
and
Transfer
and
Dividend
Disbursing
Agent
Russell
Investments
Fund
Services,
LLC
1301
Second
Avenue
Seattle, WA
98101
Custodian
State
Street
Bank
and
Trust
Company
1
Heritage
Drive
North
Quincy,
MA
02171
Office
of
Shareholder
Inquiries
1301
Second
Avenue
Seattle, WA
98101
(800)
787-7354
Legal
Counsel
Dechert
LLP
One
International
Place,
40th
Floor
100
Oliver
Street
Boston, MA
02110
Distributor
Russell
Investments
Financial
Services,
LLC
1301
Second
Avenue
Seattle,
WA
98101
Independent
Registered
Public
Accounting
Firm
PricewaterhouseCoopers
LLP
1420
5th
Avenue,
Suite
2800
Seattle,
WA
98101
Money
Mangers
U.S.
Strategic
Equity
Fund
Brandywine
Global
Investment
Management,
LLC,
Philadelphia,
PA
HS
Management
Partners,
LLC,
New
York,
NY
Jackson
Square
Partners,
LLC,
San
Francisco,
CA
Jacobs
Levy
Equity
Management,
Inc., Florham
Park, NJ
U.S.
Small
Cap
Equity
Fund
Ancora
Advisors,
LLC,
Cleveland,
OH
Boston
Partners
Global
Investors,
Inc.,
New
York,
NY
Calamos
Advisors
LLC,
Naperville,
IL
Copeland
Capital
Management,
LLC,
Conshohocken,
PA
DePrince,
Race
&
Zollo,
Inc.,
Winter
Park,
FL
Falcon
Point
Capital,
LLC,
San
Francisco,
CA
Jacobs
Levy
Equity
Management,
Inc.,
Florham
Park,
NJ
Penn
Capital
Management
Company,
Inc.,
Philadelphia,
PA
International
Developed
Markets
Fund
GQG
Partners
LLC,
Fort
Lauderdale,
FL
Pzena
Investment
Management,
LLC,
New
York,
NY
Wellington
Management
Company
LLP,
Boston,
MA
Strategic
Bond
Fund
Colchester
Global
Investors
Limited,
London,
England
Logan
Circle
Partners,
L.P.,
Philadelphia,
PA
Schroder
Investment
Management
North
America
Inc.,
New
York,
NY
Scout
Investments,
Inc.,
Kansas
City,
MO
Western
Asset
Management
Company,
Pasadena,
CA
and
Western
Asset
Management
Company
Limited,
London,
United
Kingdom
Global
Real
Estate
Securities
Fund
Cohen
&
Steers
Capital
Management,
Inc.,
New
York,
NY
Cohen
&
Steers
UK
Limited
London,
United
Kingdom
and
Cohen
&
Steers
Asia
Limited,
Hong
Kong,
China
Morgan
Stanley
Investment
Management
Inc.,
New
York,
NY
Morgan
Stanley
Investment
Management
Limited,
New
York,
NY
and
Morgan
Stanley
Investment
Management
Company,
New
York,
NY
RREEF
America
L.L.C.,
Chicago,
IL,
Deutsche
Investments
Australia
Limited,
Sydney
NSW,
Australia,
Deutsch
Alternatives
Asset
Management
(Global)
Limited,
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.
Russell
Investment
Funds
1301
Second
Avenue
Seattle,
Washington
98101
800-787-7354
Fax:
206-505-3495
https://russellinvestments.com
2019
SEMI-ANNUAL
REPORT
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
JUNE
30,
2019
FUND
Moderate
Strategy
Fund
Balanced
Strategy
Fund
Growth
Strategy
Fund
Equity
Growth
Strategy
Fund
Beginning
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
paper
copies
of
the
Funds’
annual
and
semi-annual
shareholder
reports
like
this
one
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
supported
by
your
financial
professional
or
variable
annuity
provider,
you
may
elect
to
receive
shareholder
reports
and
other
Fund
communications
electronically.
Please
contact
your
financial
professional
or
variable
annuity
provider
for
more
information.
You
may
elect
to
receive
all
future
shareholder
reports
in
paper
free
of
charge.
Please
contact
your
financial
professional
or
variable
annuity
provider
to
inform
them
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports.
Your
election
to
receive
reports
in
paper
will
apply
to
all
Russell
Investment
Funds
and
other
funds
you
hold
with
your
financial
professional
or
variable
annuity
provider.
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.
Page
Moderate
Strategy
Fund
3
Balanced
Strategy
Fund
17
Growth
Strategy
Fund
33
Equity
Growth
Strategy
Fund
49
Notes
to
Schedule
of
Investments
65
Notes
to
Financial
Highlights
67
Notes
to
Financial
Statements
68
Basis
for
Approval
of
Investment
Advisory
Agreement
81
Shareholder
Requests
for
Additional
Information
90
Disclosure
of
Information
about
Fund
Trustees
and
Officers
91
Adviser
and
Service
Providers
96
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Semi-annual
Report
June
30,
2019
(Unaudited)
Table
of
Contents
Russell
Investment
Funds
-
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Copyright
©
Russell
Investments
2019.
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.
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.
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.
Russell
Investment
Funds
Moderate
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
Moderate
Strategy
Fund
3
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2019
$
1,083
.00
$
1,024
.10
Expenses
Paid
During
Period*
$
0
.72
$
0
.70
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.14%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
4
Moderate
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
97.3%
Alternative
-
5.9%
RIC
Commodity
Strategies
Fund
Class
Y
581,691
3,014
RIC
Global
Infrastructure
Fund
Class
Y
150,039
1,710
RIF
Global
Real
Estate
Securities
Fund
87,858
1,331
6,055
Domestic
Equities
-
9.5%
RIC
Sustainable
Equity
Fund
Class
Y
1,127
59
RIC
U.S.
Dynamic
Equity
Fund
Class
Y
32,376
230
RIF
U.S.
Small
Cap
Equity
Fund
561,686
7,734
RIF
U.S.
Strategic
Equity
Fund
104,632
1,627
9,650
Fixed
Income
-
48.2%
RIC
Investment
Grade
Bond
Fund
Class
Y
563,572
12,263
RIC
Opportunistic
Credit
Fund
Class
Y
672,087
6,418
RIC
Unconstrained
Total
Return
Fund
Class
Y
823,100
8,182
RIF
Strategic
Bond
Fund
2,081,201
22,144
49,007
International
Equities
-
19.3%
RIC
Emerging
Markets
Fund
Class
Y
345,689
6,502
RIC
Global
Equity
Fund
Class
Y
738,569
7,179
RIF
International
Developed
Markets
Fund
533,092
5,976
19,657
Multi-Asset
-
14.4%
RIC
Multi-Strategy
Income
Fund
Class
Y
1,456,720
14,655
Total
Investments
in
Affiliated
Funds
(cost
$93,595)
99,024
Total
Investments
97.3%
(identified
cost
$93,595)
99,024
Other
Assets
and
Liabilities,
Net
-
2.7%
2,704
Net
Assets
-
100.0%
101,728
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
5
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Amsterdam
Index
Futures
4
EUR
449
07/19
6
CAC40
Euro
Index
Futures
27
EUR
1,494
07/19
44
DAX
Index
Futures
3
EUR
929
09/19
10
Dow
Jones
U.S.
Real
Estate
Index
Futures
65
USD
2,251
09/19
(31)
Euro
STOXX
50
Index
Futures
24
EUR
832
09/19
29
FTSE
100
Index
Futures
4
GBP
295
09/19
4
FTSE/MIB
Index
Futures
3
EUR
317
09/19
7
IBEX
35
Index
Futures
4
EUR
367
07/19
3
MSCI
EAFE
Index
Futures
15
USD
1,442
09/19
38
OMXS30
Index
Futures
18
SEK
2,917
07/19
5
Russell
1000
E-Mini
Index
Futures
4
USD
326
09/19
6
S&P
Mid
400
E-Mini
Index
Futures
1
USD
195
09/19
3
S&P/TSX
60
Index
Futures
4
CAD
782
09/19
5
SPI
200
Index
Futures
8
AUD
1,312
09/19
10
TOPIX
Index
Futures
6
JPY
93,061
09/19
(3)
Short
Positions
S&P
500
E-Mini
Index
Futures
11
USD
1,619
09/19
(28)
MSCI
Emerging
Markets
Index
Futures
2
USD
105
09/19
(3)
NASDAQ
100
E-Mini
Index
Futures
21
USD
3,232
09/19
(79)
Russell
2000
E-Mini
Index
Futures
54
USD
4,231
09/19
(101)
S&P
Financial
Select
Sector
Index
Futures
25
USD
2,126
09/19
(42)
United
States
5
Year
Treasury
Note
Futures
69
USD
8,153
09/19
(103)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(220)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
Montreal
USD
219
AUD
315
09/18/19
2
Bank
of
Montreal
USD
372
CAD
494
09/18/19
6
Bank
of
Montreal
USD
367
JPY
39,503
09/18/19
2
Bank
of
Montreal
USD
30
MXN
575
09/18/19
—
Bank
of
Montreal
CHF
118
USD
120
09/18/19
(2)
Bank
of
Montreal
EUR
11
USD
13
09/18/19
—
Bank
of
Montreal
GBP
241
USD
307
09/18/19
—
Bank
of
Montreal
SEK
432
USD
46
09/18/19
(1)
Bank
of
Montreal
SGD
26
USD
19
09/18/19
—
Bank
of
Montreal
ZAR
250
USD
17
09/18/19
(1)
Royal
Bank
of
Canada
USD
219
AUD
315
09/18/19
2
Royal
Bank
of
Canada
USD
372
CAD
494
09/18/19
6
Royal
Bank
of
Canada
USD
367
JPY
39,503
09/18/19
1
Royal
Bank
of
Canada
USD
30
MXN
575
09/18/19
—
Royal
Bank
of
Canada
CHF
118
USD
120
09/18/19
(2)
Royal
Bank
of
Canada
EUR
11
USD
13
09/18/19
—
Royal
Bank
of
Canada
GBP
241
USD
307
09/18/19
1
Royal
Bank
of
Canada
HKD
415
USD
53
09/18/19
—
Royal
Bank
of
Canada
SEK
432
USD
46
09/18/19
(1)
Royal
Bank
of
Canada
SGD
26
USD
19
09/18/19
—
Royal
Bank
of
Canada
ZAR
250
USD
17
09/18/19
(1)
Standard
Chartered
HKD
415
USD
53
09/18/19
—
State
Street
USD
999
CNY
6,920
09/18/19
8
State
Street
USD
20
RUB
1,340
09/18/19
1
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
6
Moderate
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
State
Street
INR
8,140
USD
116
09/18/19
(1)
State
Street
KRW
349,910
USD
298
09/18/19
(5)
State
Street
TWD
9,520
USD
305
09/18/19
(4)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
11
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
Emerging
Markets
Index
Bank
of
America
Purchase
USD
2,200
(1.000%)
(2)
06/20/24
74
(6)
68
CDX
NA
High
Yield
Index
Bank
of
America
Sell
USD
5,600
5.000%
(2)
06/20/24
316
118
434
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
8,900
(1.000%)
(2)
06/20/24
(143)
(73)
(216)
Total
Open
Credit
Indices
Contracts
(å)
247
39
286
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Investments
in
Affiliated
Funds
$
99,024
$
—
$
—
$
—
$
99,024
97.3
Total
Investments
99,024
—
—
—
99,024
97.3
Other
Assets
and
Liabilities,
Net
2.7
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
170
—
—
—
170
0.2
Foreign
Currency
Exchange
Contracts
—
29
—
—
29
—
*
Credit
Default
Swap
Contracts
—
502
—
—
502
0.5
'
Liabilities
Futures
Contracts
(390)
—
—
—
(390)
(0.4)
Foreign
Currency
Exchange
Contracts
—
(18)
—
—
(18)
(—)
*
Credit
Default
Swap
Contracts
—
(216)
—
—
(216)
(0.2)
Total
Other
Financial
Instruments
**
$
(220)
$
297
$
—
$
—
$
77
*
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
June
30,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Moderate
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
7
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
29
$
—
Variation
margin
on
futures
contracts*
170
—
—
—
Credit
default
swap
contracts,
at
fair
value
—
502
—
—
Total
$
170
$
502
$
29
$
—
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
287
$
—
$
—
$
103
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
18
—
Credit
default
swap
contracts,
at
fair
value
—
216
—
—
Total
$
287
$
216
$
18
$
103
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Investments**
$
92
$
—
$
—
$
—
Futures
contracts
1,140
—
—
(138)
Options
written
42
—
—
—
Total
return
swap
contracts
(1,750)
—
—
—
Credit
default
swap
contracts
—
(18)
—
—
Foreign
currency
exchange
contracts
—
—
33
—
Total
$
(4
76)
$
(18)
$
33
$
(138)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments***
$
250
$
—
$
—
$
—
Futures
contracts
91
—
—
(39)
Options
written
23
—
—
—
Credit
default
swap
contracts
—
10
3
—
—
Foreign
currency
exchange
contracts
—
—
39
—
Total
$
364
$
10
3
$
39
$
(39)
*
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.
Russell
Investment
Funds
Moderate
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
8
Moderate
Strategy
Fund
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
29
$
—
$
29
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
502
—
502
Total
Financial
and
Derivative
Assets
531
—
531
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(438)
—
(438)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
93
$
—
$
93
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
America
$
68
$
—
$
—
$
68
Bank
of
Montreal
6
3
—
3
Royal
Bank
of
Canada
10
4
—
6
State
Street
9
9
—
—
Total
$
93
$
16
$
—
$
77
Russell
Investment
Funds
Moderate
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
9
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
18
$
—
$
18
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
216
—
216
Total
Financial
and
Derivative
Liabilities
234
—
234
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(217)
—
(217)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
17
$
—
$
17
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
Montreal
$
3
$
3
$
—
$
—
Royal
Bank
of
Canada
4
4
—
—
State
Street
10
9
—
1
Total
$
17
$
16
$
—
$
1
^ 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.
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
Moderate
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
93,595
Investments,
at
fair
value
(>)
...........................................................................................................................................................
99,024
Cash
...............................................................................................................................................................................................
1,176
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
29
Receivables:
Dividends
and
interest
.......................................................................................................................................................
1
Investments
sold
................................................................................................................................................................
9
From
affiliates
....................................................................................................................................................................
3
From
broker(a)
...................................................................................................................................................................
52,995
Variation
margin
on
futures
contracts
.................................................................................................................................
124
Credit
default
swap
contracts,
at
fair
value
(+)
...............................................................................................................................
502
Total
assets
.................................................................................................................................................
153,863
Liabilities
Payables:
Due
to
broker
(b)
................................................................................................................................................................
51,501
Fund
shares
redeemed
.......................................................................................................................................................
8
Accrued
fees
to
affiliates
....................................................................................................................................................
4
Other
accrued
expenses
.....................................................................................................................................................
45
Variation
margin
on
futures
contracts
.................................................................................................................................
343
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
18
Credit
default
swap
contracts,
at
fair
value
(+)
...............................................................................................................................
216
Total
liabilities
.............................................................................................................................................
52,135
Net
Assets
............................................................................................................................................................
$
101,728
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
11
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
2,253
Shares
of
beneficial
interest
...........................................................................................................................................................
104
Additional
paid-in
capital
..............................................................................................................................................................
99,371
Net
Assets
............................................................................................................................................................
$
101,728
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.75
Net
assets
...............................................................................................................................................................................
$
101,728,104
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
10,434,088
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
247
(>)
Investments
in
affiliated
funds
$
99,024
(a)
Receivable
from
Broker
for
Swaps
$
52,995
(b)
Due
to
Broker
for
Swaps
$
51,501
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
Moderate
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.........................................................................................................................
$
613
Interest
..............................................................................................................................................................................
1
Total
investment
income
...............................................................................................................................................................
614
Expenses
Advisory
fees
....................................................................................................................................................................
101
Administrative
fees
...........................................................................................................................................................
22
Custodian
fees
...................................................................................................................................................................
26
Transfer
agent
fees
............................................................................................................................................................
2
Professional
fees
...............................................................................................................................................................
20
Trustees’
fees
....................................................................................................................................................................
2
Printing
fees
......................................................................................................................................................................
12
Miscellaneous
...................................................................................................................................................................
5
Expenses
before
reductions
..............................................................................................................................................
1
90
Expense
reductions
...........................................................................................................................................................
(11
9
)
Net
expenses
.................................................................................................................................................................................
7
1
Net
investment
income
(loss)
........................................................................................................................................................
54
3
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
92
Investments
in
affiliated
funds
..........................................................................................................................................
(444)
Futures
contracts
..............................................................................................................................................................
1,002
Options
written
.................................................................................................................................................................
42
Foreign
currency
exchange
contracts
................................................................................................................................
33
Total
return
swap
contracts
...............................................................................................................................................
(1,7
50
)
Credit
default
swap
contracts
............................................................................................................................................
(18)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
16
Net
realized
gain
(loss)
..................................................................................................................................................................
(1,02
7
)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
25
0
Investments
in
affiliated
funds
..........................................................................................................................................
8,1
71
Futures
contracts
..............................................................................................................................................................
5
2
Options
written
.................................................................................................................................................................
23
Foreign
currency
exchange
contracts
................................................................................................................................
39
Credit
default
swap
contracts
............................................................................................................................................
10
3
Foreign
currency-related
transactions
...............................................................................................................................
(2)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
8,63
6
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
7,6
09
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
8,
152
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
13
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
54
3
$
3,519
Net
realized
gain
(loss)
......................................................................................................................
(1,02
7
)
2,715
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
8,63
6
(11,509)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
8,15
2
(5,275)
Distributions
To
shareholders
.................................................................................................................................
(2,86
0
)
(5,778)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(2,86
0
)
(5,778)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(4,667)
(2,750)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
625
(13,803)
Net
Assets
Beginning
of
period
.................................................................................................................................
101,103
114,906
End
of
period
..........................................................................................................................................
$
101,728
$
101,103
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
211
$
2,005
872
$
8,698
Proceeds
from
reinvestment
of
distributions
301
2,861
601
5,778
Payments
for
shares
redeemed
(994)
(9,533)
(1,727)
(17,226)
Total
increase
(decrease)
(482)
$
(4,667)
(254)
$
(2,750)
Russell
Investment
Funds
Moderate
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
14
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2019(1)
9.26
.0
5
.71
.76
(.04)
(.23)
December
31,
2018
10.29
.32
(.82)
(.50)
(.44)
(.09)
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
15
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.27)
9.75
8.30
101,728
.37
.14
1.07
4
(.53)
9.26
(4.92)
101,103
.35
.14
3.20
22
(.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
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
16
Moderate
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019
,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Administration
fees
$
3,52
8
Transfer
agent
fees
365
$
3,893
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
RIC
Commodity
Strategies
Fund
$
2,843
$
242
$
198
$
(60
)
$
187
$
3,014
$
—
$
—
RIC
Global
Infrastructure
Fund
1,651
26
284
14
303
1,710
6
—
RIF
Global
Real
Estate
Securities
Fund
1,291
51
187
1
175
1,331
8
—
RIC
Sustainable
Equity
Fund
57
2
8
—
8
59
—
—
RIC
U.S.
Dynamic
Equity
Fund
214
13
38
(13
)
54
230
—
—
RIF
U.S.
Small
Cap
Equity
Fund
7,096
588
1,099
(148
)
1,297
7,734
8
—
RIF
U.S.
Strategic
Equity
Fund
1,521
98
266
(41
)
315
1,627
5
16
RIC
Investment
Grade
Bond
Fund
12,122
419
910
(4
)
636
12,263
121
—
RIC
Opportunistic
Credit
Fund
6,280
245
479
10
362
6,418
114
—
RIC
Unconstrained
Total
Return
Fund
8,119
354
458
(2
)
169
8,182
61
—
RIF
Strategic
Bond
Fund
21,902
708
1,678
(17
)
1,229
22,144
163
—
RIC
Emerging
Markets
Fund
6,268
568
1,071
(13
)
750
6,502
—
—
RIC
Global
Equity
Fund
6,848
301
964
(91
)
1,085
7,179
—
—
RIF
International
Developed
Markets
Fund
5,736
331
750
(41
)
700
5,976
11
—
RIC
Multi-Strategy
Income
Fund
14,318
506
1,031
(39
)
901
14,655
116
—
$
96.266
$
4,452
$
9,421
$
(444
)
$
8,171
$
99,024
$
613
$
16
Cost
of
Investments
$
95,324,652
Unrealized
Appreciation
$
4,568,924
Unrealized
Depreciation
(796,842)
Net
Unrealized
Appreciation
(Depreciation)
$
3,772,082
Russell
Investment
Funds
Balanced
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
Balanced
Strategy
Fund
17
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2019
$
1,103
.30
$
1,024
.10
Expenses
Paid
During
Period*
$
0
.73
$
0
.70
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.14%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
18
Balanced
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
95.5%
Alternative
-
6.7%
RIC
Commodity
Strategies
Fund
Class
Y
1,619,606
8,389
RIC
Global
Infrastructure
Fund
Class
Y
431,928
4,924
RIF
Global
Real
Estate
Securities
Fund
272,914
4,135
17,448
Domestic
Equities
-
9.6%
RIC
Sustainable
Equity
Fund
Class
Y
92,898
4,880
RIC
U.S.
Dynamic
Equity
Fund
Class
Y
269,785
1,913
RIF
U.S.
Small
Cap
Equity
Fund
1,052,041
14,486
RIF
U.S.
Strategic
Equity
Fund
242,746
3,775
25,054
Fixed
Income
-
32.9%
RIC
Opportunistic
Credit
Fund
Class
Y
1,058,373
10,107
RIC
Unconstrained
Total
Return
Fund
Class
Y
1,777,166
17,665
RIF
Strategic
Bond
Fund
5,490,245
58,417
86,189
International
Equities
-
38.5%
RIC
Emerging
Markets
Fund
Class
Y
1,110,453
20,888
RIC
Global
Equity
Fund
Class
Y
4,829,660
46,943
RIF
International
Developed
Markets
Fund
2,936,442
32,918
100,749
Multi-Asset
-
7.8%
RIC
Multi-Strategy
Income
Fund
Class
Y
2,035,201
20,474
Total
Investments
in
Affiliated
Funds
(cost
$228,723
)
249,914
Short-Term
Investments
-
0.0%
U.S.
Cash
Management
Fund
(@)
9,936
(∞)
10
Total
Short-Term
Investments
(cost
$10)
10
Total
Investments
95.5%
(identified
cost
$228,733)
249,924
Other
Assets
and
Liabilities,
Net
-
4.5%
11,769
Net
Assets
-
100.0%
261,693
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
19
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Amsterdam
Index
Futures
13
EUR
1,458
07/19
20
CAC40
Euro
Index
Futures
87
EUR
4,814
07/19
141
DAX
Index
Futures
12
EUR
3,716
09/19
40
Dow
Jones
U.S.
Real
Estate
Index
Futures
162
USD
5,610
09/19
(78)
Euro
STOXX
50
Index
Futures
80
EUR
2,773
09/19
95
FTSE
100
Index
Futures
8
GBP
590
09/19
8
FTSE/MIB
Index
Futures
9
EUR
952
09/19
22
IBEX
35
Index
Futures
14
EUR
1,284
07/19
10
MSCI
EAFE
Index
Futures
9
USD
865
09/19
23
OMXS30
Index
Futures
59
SEK
9,562
07/19
16
Russell
1000
E-Mini
Index
Futures
3
USD
245
09/19
5
S&P
400
E-Mini
Index
Futures
2
USD
390
09/19
7
S&P
500
E-Mini
Index
Futures
21
USD
3,091
09/19
53
S&P/TSX
60
Index
Futures
2
CAD
391
09/19
3
SPI
200
Index
Futures
9
AUD
1,476
09/19
11
TOPIX
Index
Futures
19
JPY
294,691
09/19
(9)
Short
Positions
Hang
Seng
Index
Futures
1
HKD
1,425
07/19
(2)
MSCI
Emerging
Markets
Index
Futures
10
USD
527
09/19
(19)
MSCI
Singapore
Index
Futures
1
SGD
38
07/19
—
NASDAQ
100
E-Mini
Index
Futures
85
USD
13,080
09/19
(321)
S&P
Financial
Select
Sector
Index
Futures
48
USD
4,082
09/19
(80)
United
States
5
Year
Treasury
Note
Futures
158
USD
18,668
09/19
(237)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(292)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
TRY
1,760
USD
288
09/18/19
(4)
Bank
of
Montreal
USD
375
CAD
498
09/18/19
6
Bank
of
Montreal
USD
171
CHF
168
09/18/19
3
Bank
of
Montreal
USD
402
JPY
43,270
09/18/19
2
Bank
of
Montreal
USD
21
MXN
415
09/18/19
—
Bank
of
Montreal
USD
161
NOK
1,388
09/18/19
2
Bank
of
Montreal
AUD
682
USD
475
09/18/19
(5)
Bank
of
Montreal
EUR
1,717
USD
1,957
09/18/19
(9)
Bank
of
Montreal
GBP
877
USD
1,118
09/18/19
—
Bank
of
Montreal
SEK
464
USD
49
09/18/19
(1)
Bank
of
Montreal
SGD
230
USD
168
09/18/19
(1)
Bank
of
Montreal
ZAR
53
USD
3
09/18/19
—
Commonwealth
Bank
of
Australia
USD
375
CAD
498
09/18/19
5
Commonwealth
Bank
of
Australia
USD
171
CHF
168
09/18/19
3
Commonwealth
Bank
of
Australia
USD
402
JPY
43,270
09/18/19
2
Commonwealth
Bank
of
Australia
USD
21
MXN
415
09/18/19
—
Commonwealth
Bank
of
Australia
USD
161
NOK
1,388
09/18/19
2
Commonwealth
Bank
of
Australia
AUD
682
USD
475
09/18/19
(5)
Commonwealth
Bank
of
Australia
EUR
1,717
USD
1,957
09/18/19
(7)
Commonwealth
Bank
of
Australia
GBP
877
USD
1,122
09/18/19
4
Commonwealth
Bank
of
Australia
HKD
1,124
USD
144
09/18/19
—
Commonwealth
Bank
of
Australia
SEK
464
USD
49
09/18/19
(1)
Commonwealth
Bank
of
Australia
SGD
230
USD
168
09/18/19
(1)
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
20
Balanced
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Commonwealth
Bank
of
Australia
ZAR
53
USD
4
09/18/19
—
Royal
Bank
of
Canada
USD
375
CAD
498
09/18/19
5
Royal
Bank
of
Canada
USD
171
CHF
168
09/18/19
3
Royal
Bank
of
Canada
USD
402
JPY
43,270
09/18/19
2
Royal
Bank
of
Canada
USD
21
MXN
415
09/18/19
—
Royal
Bank
of
Canada
USD
161
NOK
1,388
09/18/19
2
Royal
Bank
of
Canada
AUD
682
USD
475
09/18/19
(5)
Royal
Bank
of
Canada
EUR
1,717
USD
1,958
09/18/19
(7)
Royal
Bank
of
Canada
GBP
877
USD
1,120
09/18/19
3
Royal
Bank
of
Canada
HKD
1,124
USD
144
09/18/19
—
Royal
Bank
of
Canada
SEK
464
USD
49
09/18/19
(1)
Royal
Bank
of
Canada
SGD
230
USD
168
09/18/19
(1)
Royal
Bank
of
Canada
ZAR
53
USD
4
09/18/19
—
Standard
Chartered
HKD
1,124
USD
144
09/18/19
—
State
Street
USD
375
CAD
498
09/18/19
5
State
Street
USD
171
CHF
168
09/18/19
3
State
Street
USD
2,229
CNY
15,430
09/18/19
18
State
Street
USD
402
JPY
43,270
09/18/19
2
State
Street
USD
21
MXN
415
09/18/19
—
State
Street
USD
161
NOK
1,388
09/18/19
2
State
Street
USD
28
RUB
1,880
09/18/19
1
State
Street
AUD
682
USD
475
09/18/19
(5)
State
Street
BRL
5,310
USD
1,359
09/18/19
(14)
State
Street
EUR
1,717
USD
1,957
09/18/19
(7)
State
Street
GBP
877
USD
1,122
09/18/19
4
State
Street
HKD
1,124
USD
144
09/18/19
—
State
Street
INR
49,110
USD
702
09/18/19
(3)
State
Street
KRW
1,695,470
USD
1,442
09/18/19
(26)
State
Street
SEK
464
USD
49
09/18/19
(1)
State
Street
SGD
230
USD
168
09/18/19
(1)
State
Street
TWD
28,550
USD
914
09/18/19
(12)
State
Street
ZAR
53
USD
4
09/18/19
—
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(38)
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
Emerging
Markets
Index
Bank
of
America
Purchase
USD
4,300
(1.000%)
(2)
06/20/24
145
(11)
134
CDX
NA
High
Yield
Index
Bank
of
America
Sell
USD
2,000
5.000%
(2)
06/20/24
122
33
155
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
16,800
(1.000%)
(2)
06/20/24
(270)
(137)
(407)
Total
Open
Credit
Indices
Contracts
(å)
(3)
(115)
(118)
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
21
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Investments
in
Affiliated
Funds
$
249,914
$
—
$
—
$
—
$
249,914
95.5
Short-Term
Investments
—
—
—
10
10
—
*
Total
Investments
249,914
—
—
10
249,924
95.5
Other
Assets
and
Liabilities,
Net
4.5
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
454
—
—
—
454
0.
2
Foreign
Currency
Exchange
Contracts
—
79
—
—
79
—
*
Credit
Default
Swap
Contracts
—
289
—
—
289
0.
1
'
Liabilities
Futures
Contracts
(746)
—
—
—
(746)
(0.3
)
Foreign
Currency
Exchange
Contracts
—
(117)
—
—
(117)
(—)
*
Credit
Default
Swap
Contracts
—
(407)
—
—
(407)
(0.2)
Total
Other
Financial
Instruments
**
$
(292)
$
(156)
$
—
$
—
$
(448)
*
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
June
30,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
22
Balanced
Strategy
Fund
Russell
Investment
Funds
Balanced
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
79
$
—
Variation
margin
on
futures
contracts*
454
—
—
—
Credit
default
swap
contracts,
at
fair
value
—
289
—
—
Total
$
454
$
289
$
79
$
—
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
509
$
—
$
—
$
237
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
117
—
Credit
default
swap
contracts,
at
fair
value
—
407
—
—
Total
$
509
$
407
$
117
$
237
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Investments**
$
(932)
$
—
$
—
$
—
Futures
contracts
4,268
—
—
(189)
Options
written
107
—
—
—
Total
return
swap
contracts
(4,125)
—
—
—
Credit
default
swap
contracts
—
(24)
—
—
Foreign
currency
exchange
contracts
—
—
430
—
Total
$
(682)
$
(24)
$
430
$
(189)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments***
$
633
$
—
$
—
$
—
Futures
contracts
907
—
—
(165)
Options
written
59
—
—
—
Total
return
swap
contracts
551
—
—
—
Credit
default
swap
contracts
—
65
—
—
Foreign
currency
exchange
contracts
—
—
(60)
—
Total
$
2,150
$
65
$
(60)
$
(165)
*
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.
Russell
Investment
Funds
Balanced
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
23
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
79
$
—
$
79
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
289
—
289
Total
Financial
and
Derivative
Assets
368
—
368
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(154)
—
(154)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
214
$
—
$
214
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
America
$
134
$
4
$
—
$
130
Bank
of
Montreal
13
13
—
—
Commonwealth
Bank
of
Australia
17
14
—
3
Royal
Bank
of
Canada
15
14
—
1
State
Street
35
35
—
—
Total
$
214
$
80
$
—
$
134
Russell
Investment
Funds
Balanced
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
24
Balanced
Strategy
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
117
$
—
$
117
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
407
—
407
Total
Financial
and
Derivative
Liabilities
524
—
524
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(407)
—
(407)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
117
$
—
$
117
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
America
$
4
$
4
$
—
$
—
Bank
of
Montreal
15
13
—
2
Commonwealth
Bank
of
Australia
14
14
—
—
Royal
Bank
of
Canada
14
14
—
—
State
Street
70
35
—
35
Total
$
117
$
80
$
—
$
37
^ 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.
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
25
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
228,733
Investments,
at
fair
value(>)
...........................................................................................................................................................
249,924
Cash
...............................................................................................................................................................................................
9,185
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
79
Receivables:
Fund
shares
sold
................................................................................................................................................................
139
From
broker(a)
...................................................................................................................................................................
103,290
Variation
margin
on
futures
contracts
.................................................................................................................................
368
Prepaid
expenses
...........................................................................................................................................................................
1
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
289
Total
assets
.................................................................................................................................................
363,275
Liabilities
Payables:
Due
to
broker
(b)
................................................................................................................................................................
100,183
Investments
purchased
......................................................................................................................................................
139
Accrued
fees
to
affiliates
....................................................................................................................................................
15
Other
accrued
expenses
.....................................................................................................................................................
63
Variation
margin
on
futures
contracts
.................................................................................................................................
658
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
117
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
407
Total
liabilities
.............................................................................................................................................
101,582
Net
Assets
............................................................................................................................................................
$
261,693
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
26
Balanced
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
1
1
,
95
7
Shares
of
beneficial
interest
...........................................................................................................................................................
279
Additional
paid-in
capital
..............................................................................................................................................................
249,45
7
Net
Assets
............................................................................................................................................................
$
261,693
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.38
Net
assets
...............................................................................................................................................................................
$
261,693,288
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
27,902,075
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(3)
(>)
Investments
in
affiliated
funds
$
249
,
924
(a)
Receivable
from
Broker
for
Swaps
$
103,290
(b) Due
to
Broker
for
Futures
$
100,183
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
27
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
1,032
Expenses
Advisory
fees
....................................................................................................................................................................
259
Administrative
fees
...........................................................................................................................................................
55
Custodian
fees
...................................................................................................................................................................
28
Transfer
agent
fees
............................................................................................................................................................
5
Professional
fees
...............................................................................................................................................................
25
Trustees’
fees
....................................................................................................................................................................
5
Printing
fees
......................................................................................................................................................................
25
Miscellaneous
...................................................................................................................................................................
6
Expenses
before
reductions
..............................................................................................................................................
408
Expense
reductions
...........................................................................................................................................................
(227)
Net
expenses
.................................................................................................................................................................................
181
Net
investment
income
(loss)
........................................................................................................................................................
851
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(932)
Investments
in
affiliated
funds
..........................................................................................................................................
(1,681)
Futures
contracts
..............................................................................................................................................................
4,079
Options
written
.................................................................................................................................................................
107
Foreign
currency
exchange
contracts
................................................................................................................................
430
Total
return
swap
contracts
...............................................................................................................................................
(4,125)
Credit
default
swap
contracts
............................................................................................................................................
(24)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
37
Net
realized
gain
(loss)
..................................................................................................................................................................
(2,109)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
633
Investments
in
affiliated
funds
..........................................................................................................................................
24,587
Futures
contracts
..............................................................................................................................................................
742
Options
written
.................................................................................................................................................................
59
Foreign
currency
exchange
contracts
................................................................................................................................
(60)
Total
return
swap
contracts
...............................................................................................................................................
551
Credit
default
swap
contracts
............................................................................................................................................
65
Foreign
currency-related
transactions
...............................................................................................................................
16
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
26,593
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
24,484
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
25,335
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
28
Balanced
Strategy
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
851
$
9,202
Net
realized
gain
(loss)
......................................................................................................................
(2,109)
10,079
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
26,593
(37,870)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
25,335
(18,589)
Distributions
To
shareholders
.................................................................................................................................
(5,758)
(23,207)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(5,758)
(23,207)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(11,213)
(134)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
8,364
(41,930)
Net
Assets
Beginning
of
period
.................................................................................................................................
253,329
295,259
End
of
period
..........................................................................................................................................
$
261,693
$
253,329
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
449
$
4,113
728
$
7,156
Proceeds
from
reinvestment
of
distributions
630
5,758
2,507
23,207
Payments
for
shares
redeemed
(2,304
)
(21,084
)
(3,134
)
(30,497
)
Total
increase
(decrease)
(1,225
)
$
(11,213
)
101
$
(134
)
Russell
Investment
Funds
Balanced
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
30
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2019(1)
8.70
.03
.85
.88
(.03)
(.17)
December
31,
2018
10.17
.32
(.97)
(.65)
(.54)
(.28)
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
31
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.20)
9.38
10.33
261,693
.31
.14
.66
3
(.82)
8.70
(6.69)
253,329
.30
.14
3.25
13
(.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
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
32
Balanced
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
5,025
Administration
fees
9,031
Transfer
agent
fees
935
$
14,991
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
RIC
Commodity
Strategies
Fund
$
7,773
$
502
$
226
$
(158
)
$
498
$
8,389
$
—
$
—
RIC
Global
Infrastructure
Fund
4,712
32
724
(20
)
924
4,924
16
—
RIF
Global
Real
Estate
Securities
Fund
4,005
134
543
(4
)
543
4,135
26
—
RIC
Sustainable
Equity
Fund
4,594
112
511
43
642
4,880
4
—
RIC
U.S.
Dynamic
Equity
Fund
1,646
81
137
(49
)
372
1,913
3
—
RIF
U.S.
Small
Cap
Equity
Fund
12,168
984
658
(65
)
2,057
14,486
16
—
RIF
U.S.
Strategic
Equity
Fund
3,310
177
324
32
580
3,775
11
37
RIC
Opportunistic
Credit
Fund
9,978
331
787
(17
)
602
10,107
176
—
RIC
Unconstrained
Total
Return
Fund
17,752
519
967
(9
)
370
17,665
134
—
RIF
Strategic
Bond
Fund
59,148
1,355
5,281
(66
)
3,261
58,417
425
—
RIC
Emerging
Markets
Fund
19,350
1,817
2,579
(210
)
2,510
20,888
—
—
RIC
Global
Equity
Fund
43,074
1,347
3,827
(774
)
7,123
46,943
—
—
RIF
International
Developed
Markets
Fund
29,977
1,393
1,966
(329
)
3,843
32,918
59
—
RIC
Multi-Strategy
Income
Fund
20,102
529
1,364
(55
)
1,262
20,474
162
—
U.S.
Cash
Management
Fund
10
—
—
—
—
10
—
—
$
237,599
$
9,313
$
19,894
$
(1,681
)
$
24,587
$
249,924
$
1,032
$
37
Cost
of
Investments
$
233,826,196
Unrealized
Appreciation
$
18,528,943
Unrealized
Depreciation
(2,875,325)
Net
Unrealized
Appreciation
(Depreciation)
$
15,653,618
Russell
Investment
Funds
Growth
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
Growth
Strategy
Fund
33
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2019
$
1,113
.50
$
1,024
.05
Expenses
Paid
During
Period*
$
0
.79
$
0
.75
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.15%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
Growth
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
97.2%
Alternative
-
7.5%
RIC
Commodity
Strategies
Fund
Class
Y
1,176,493
6,094
RIC
Global
Infrastructure
Fund
Class
Y
327,037
3,728
RIF
Global
Real
Estate
Securities
Fund
352,714
5,344
15,166
Domestic
Equities
-
28.8%
RIC
Sustainable
Equity
Fund
Class
Y
184,818
9,708
RIC
U.S.
Dynamic
Equity
Fund
Class
Y
1,011,156
7,169
RIF
U.S.
Small
Cap
Equity
Fund
1,694,090
23,328
RIF
U.S.
Strategic
Equity
Fund
1,168,545
18,171
58,376
Fixed
Income
-
17.4%
RIC
Opportunistic
Credit
Fund
Class
Y
249,973
2,387
RIC
Unconstrained
Total
Return
Fund
Class
Y
2,286,248
22,726
RIF
Strategic
Bond
Fund
948,046
10,087
35,200
International
Equities
-
43.5%
RIC
Emerging
Markets
Fund
Class
Y
877,402
16,504
RIC
Global
Equity
Fund
Class
Y
3,708,350
36,045
RIF
International
Developed
Markets
Fund
3,157,808
35,399
87,948
Total
Investments
in
Affiliated
Funds
(cost
$179,526)
196,690
Short-Term
Investments
-
0.0%
U.S.
Cash
Management
Fund(@)
19,289
(∞)
19
Total
Short-Term
Investments
(cost
$19)
19
Total
Investments
97.2%
(identified
cost
$179,545)
196,709
Other
Assets
and
Liabilities,
Net
-
2.8%
5,742
Net
Assets
-
100.0%
202,451
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
35
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Amsterdam
Index
Futures
11
EUR
1,234
07/19
17
CAC40
Euro
Index
Futures
72
EUR
3,984
07/19
117
DAX
Index
Futures
11
EUR
3,407
09/19
36
Dow
Jones
U.S.
Real
Estate
Index
Futures
60
USD
2,078
09/19
(29)
Euro
STOXX
50
Index
Futures
66
EUR
2,288
09/19
79
FTSE
100
Index
Futures
20
GBP
1,474
09/19
20
FTSE/MIB
Index
Futures
9
EUR
952
09/19
22
IBEX
35
Index
Futures
12
EUR
1,101
07/19
8
MSCI
EAFE
Index
Futures
24
USD
2,308
09/19
61
MSCI
Emerging
Markets
Index
Futures
40
USD
2,107
09/19
69
OMXS30
Index
Futures
51
SEK
8,266
07/19
14
S&P/TSX
60
Index
Futures
8
CAD
1,564
09/19
11
SPI
200
Index
Futures
14
AUD
2,296
09/19
18
TOPIX
Index
Futures
17
JPY
263,669
09/19
(8)
United
States
2
Year
Treasury
Note
Futures
155
USD
33,352
09/19
203
Short
Positions
NASDAQ
100
E-Mini
Index
Futures
59
USD
9,079
09/19
(223)
Russell
1000
E-Mini
Index
Futures
7
USD
571
09/19
(11)
Russell
2000
E-Mini
Index
Futures
54
USD
4,231
09/19
(101)
S&P
500
E-Mini
Index
Futures
77
USD
11,335
09/19
(195)
S&P
Financial
Select
Sector
Index
Futures
12
USD
1,020
09/19
(20)
S&P
Mid
400
E-Mini
Index
Futures
4
USD
780
09/19
(13)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
75
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
Montreal
USD
171
CAD
227
09/18/19
3
Bank
of
Montreal
USD
270
JPY
29,128
09/18/19
1
Bank
of
Montreal
AUD
113
USD
79
09/18/19
(1)
Bank
of
Montreal
CHF
388
USD
393
09/18/19
(7)
Bank
of
Montreal
EUR
2,462
USD
2,806
09/18/19
(12)
Bank
of
Montreal
GBP
1,451
USD
1,849
09/18/19
—
Bank
of
Montreal
MXN
760
USD
39
09/18/19
—
Bank
of
Montreal
SEK
620
USD
66
09/18/19
(1)
Bank
of
Montreal
SGD
55
USD
40
09/18/19
—
Bank
of
Montreal
ZAR
133
USD
9
09/18/19
—
Commonwealth
Bank
of
Australia
USD
171
CAD
227
09/18/19
2
Commonwealth
Bank
of
Australia
USD
270
JPY
29,128
09/18/19
1
Commonwealth
Bank
of
Australia
AUD
113
USD
79
09/18/19
(1)
Commonwealth
Bank
of
Australia
CHF
388
USD
393
09/18/19
(7)
Commonwealth
Bank
of
Australia
EUR
2,462
USD
2,808
09/18/19
(9)
Commonwealth
Bank
of
Australia
GBP
1,451
USD
1,856
09/18/19
7
Commonwealth
Bank
of
Australia
HKD
893
USD
114
09/18/19
—
Commonwealth
Bank
of
Australia
MXN
760
USD
39
09/18/19
—
Commonwealth
Bank
of
Australia
SEK
620
USD
66
09/18/19
(1)
Commonwealth
Bank
of
Australia
SGD
55
USD
40
09/18/19
—
Commonwealth
Bank
of
Australia
ZAR
133
USD
9
09/18/19
—
Royal
Bank
of
Canada
USD
171
CAD
227
09/18/19
2
Royal
Bank
of
Canada
USD
271
JPY
29,128
09/18/19
1
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
36
Growth
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Royal
Bank
of
Canada
AUD
113
USD
79
09/18/19
(1)
Royal
Bank
of
Canada
CHF
388
USD
393
09/18/19
(7)
Royal
Bank
of
Canada
EUR
2,462
USD
2,808
09/18/19
(9)
Royal
Bank
of
Canada
GBP
1,451
USD
1,854
09/18/19
5
Royal
Bank
of
Canada
HKD
893
USD
114
09/18/19
—
Royal
Bank
of
Canada
MXN
760
USD
39
09/18/19
—
Royal
Bank
of
Canada
SEK
620
USD
66
09/18/19
(1)
Royal
Bank
of
Canada
SGD
55
USD
40
09/18/19
—
Royal
Bank
of
Canada
ZAR
133
USD
9
09/18/19
—
Standard
Chartered
HKD
893
USD
114
09/18/19
—
State
Street
USD
2,152
CNY
14,900
09/18/19
18
State
Street
USD
41
RUB
2,680
09/18/19
1
State
Street
KRW
233,270
USD
198
09/18/19
(4)
State
Street
TWD
28,550
USD
914
09/18/19
(11)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(31)
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
Emerging
Markets
Index
Bank
of
America
Sell
USD
100
1.000%
(2)
06/20/24
(3)
—
(3)
CDX
NA
High
Yield
Index
Bank
of
America
Purchase
USD
10,000
(5.000%)
(2)
06/20/24
(620)
(154)
(774)
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
5,300
(1.000%)
(2)
06/20/24
(85)
(43)
(128)
Total
Open
Credit
Indices
Contracts
(å)
(708)
(197)
(905)
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Investments
in
Affiliated
Funds
$
196,690
$
—
$
—
$
—
$
196,690
97.2
Short-Term
Investments
—
—
—
19
19
—
*
Total
Investments
196,690
—
—
19
196,709
97.2
Other
Assets
and
Liabilities,
Net
2.8
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
67
5
—
—
—
67
5
0.
3
Foreign
Currency
Exchange
Contracts
—
4
1
—
—
4
1
—
*
'
Liabilities
Futures
Contracts
(60
0
)
—
—
—
(60
0
)
(0.
3
)
Foreign
Currency
Exchange
Contracts
—
(7
2
)
—
—
(7
2
)
(—)
*
Credit
Default
Swap
Contracts
—
(905)
—
—
(905)
(0.4)
Total
Other
Financial
Instruments
**
$
75
$
(936)
$
—
$
—
$
(861)
'
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
37
*
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
June
30,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
38
Growth
Strategy
Fund
Russell
Investment
Funds
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
41
$
—
Variation
margin
on
futures
contracts*
472
—
—
203
Total
$
472
$
—
$
41
$
203
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
600
$
—
$
—
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
72
—
Credit
default
swap
contracts,
at
fair
value
—
905
—
—
Total
$
600
$
905
$
72
$
—
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Investments**
$
(703
)
$
—
$
—
$
—
Futures
contracts
1,697
—
—
—
Options
written
81
—
—
—
Total
return
swap
contracts
(1,7
70
)
—
—
—
Credit
default
swap
contracts
—
(7)
—
—
Foreign
currency
exchange
contracts
—
—
306
—
Total
$
(69
5
)
$
(7)
$
306
$
—
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments***
$
479
$
—
$
—
$
—
Futures
contracts
(161)
—
—
(212)
Options
written
45
—
—
—
Credit
default
swap
contracts
—
(489)
—
—
Foreign
currency
exchange
contracts
—
—
45
—
Total
$
363
$
(489)
$
45
$
(212)
*
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.
Russell
Investment
Funds
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
39
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
41
$
—
$
41
Total
Financial
and
Derivative
Assets
41
—
41
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(2)
—
(2)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
39
$
—
$
39
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
Montreal
$
1
$
1
$
—
$
—
Commonwealth
Bank
of
Australia
11
11
—
—
Royal
Bank
of
Canada
9
9
—
—
State
Street
18
14
—
4
Total
$
39
$
35
$
—
$
4
Russell
Investment
Funds
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
40
Growth
Strategy
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
72
$
—
$
72
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
905
—
905
Total
Financial
and
Derivative
Liabilities
977
—
977
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(914)
—
(914)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
63
$
—
$
63
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
America
$
3
$
—
$
3
$
—
Bank
of
Montreal
9
1
—
8
Commonwealth
Bank
of
Australia
19
11
—
8
Royal
Bank
of
Canada
18
9
—
9
State
Street
14
14
—
��
Total
$
63
$
35
$
3
$
25
^ 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.
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
41
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
179,545
Investments,
at
fair
value(>)
...........................................................................................................................................................
196,709
Cash
...............................................................................................................................................................................................
2,566
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
41
Receivables:
Dividends
and
interest
.......................................................................................................................................................
1
Investments
sold
................................................................................................................................................................
203
Fund
shares
sold
................................................................................................................................................................
1
From
broker(a)
...................................................................................................................................................................
64,178
Variation
margin
on
futures
contracts
.................................................................................................................................
547
Prepaid
expenses
...........................................................................................................................................................................
1
Total
assets
.................................................................................................................................................
264,247
Liabilities
Payables:
Due
to
broker
(b)(c)
............................................................................................................................................................
60,077
Fund
shares
redeemed
.......................................................................................................................................................
204
Accrued
fees
to
affiliates
....................................................................................................................................................
12
Other
accrued
expenses
.....................................................................................................................................................
56
Variation
margin
on
futures
contracts
.................................................................................................................................
470
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
72
Credit
default
swap
contracts,
at
fair
value
(+)
...............................................................................................................................
905
Total
liabilities
.............................................................................................................................................
61,796
Net
Assets
............................................................................................................................................................
$
202,451
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
42
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
9,955
Shares
of
beneficial
interest
...........................................................................................................................................................
220
Additional
paid-in
capital
..............................................................................................................................................................
192,27
6
Net
Assets
............................................................................................................................................................
$
202,45
1
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.22
Net
assets
...............................................................................................................................................................................
$
202,451,114
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
21,950,042
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(708)
(>)
Investments
in
affiliated
funds
$
196,709
(a)
Receivable
from
Broker
for
Swaps
$
64,178
(b) Due
to
Broker
for
Futures
$
60,046
(c)
Due
to
Broker
for
Swaps
$
31
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
43
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.........................................................................................................................
$
48
4
Interest
..............................................................................................................................................................................
16
Total
investment
income
...............................................................................................................................................................
500
Expenses
Advisory
fees
....................................................................................................................................................................
199
Administrative
fees
...........................................................................................................................................................
42
Custodian
fees
...................................................................................................................................................................
26
Transfer
agent
fees
............................................................................................................................................................
4
Professional
fees
...............................................................................................................................................................
23
Trustees’
fees
....................................................................................................................................................................
3
Printing
fees
......................................................................................................................................................................
21
Miscellaneous
...................................................................................................................................................................
6
Expenses
before
reductions
..............................................................................................................................................
324
Expense
reductions
...........................................................................................................................................................
(175)
Net
expenses
.................................................................................................................................................................................
14
9
Net
investment
income
(loss)
........................................................................................................................................................
351
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(70
3
)
Investments
in
affiliated
funds
..........................................................................................................................................
(1,223)
Futures
contracts
..............................................................................................................................................................
1,697
Options
written
.................................................................................................................................................................
81
Foreign
currency
exchange
contracts
................................................................................................................................
306
Total
return
swap
contracts
...............................................................................................................................................
(1,770)
Credit
default
swap
contracts
............................................................................................................................................
(7)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
176
Net
realized
gain
(loss)
..................................................................................................................................................................
(1,44
3
)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
479
Investments
in
affiliated
funds
..........................................................................................................................................
22,79
4
Futures
contracts
..............................................................................................................................................................
(373)
Options
written
.................................................................................................................................................................
45
Foreign
currency
exchange
contracts
................................................................................................................................
45
Credit
default
swap
contracts
............................................................................................................................................
(4
89
)
Foreign
currency-related
transactions
...............................................................................................................................
3
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
22,50
4
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
21,061
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
21,412
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
44
Growth
Strategy
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
351
$
7,905
Net
realized
gain
(loss)
......................................................................................................................
(1,44
3
)
12,922
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
22,50
4
(37,685)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
21,412
(16,858)
Distributions
To
shareholders
.................................................................................................................................
(11,145)
(18,776)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(11,145)
(18,776)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
2,14
2
4,84
1
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
12,4
09
(30,79
3
)
Net
Assets
Beginning
of
period
.................................................................................................................................
190,042
220,835
End
of
period
..........................................................................................................................................
$
202,45
1
$
190,042
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
195
$
1,76
1
592
$
6,01
4
Proceeds
from
reinvestment
of
distributions
1,241
11,145
1,994
18,776
Payments
for
shares
redeemed
(1,186)
(10,764)
(1,991)
(19,949)
Total
increase
(decrease)
250
$
2,14
2
595
$
4,84
1
Russell
Investment
Funds
Growth
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
46
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2019(1)
8.76
.02
.96
.98
(.01)
(.51)
December
31,
2018
10.46
.37
(1.17)
(.80)
(.51)
(.39)
December
31,
2017
9.53
.34
1.13
1.47
(.32)
(.22)
December
31,
2016
8.94
.20
.66
.86
(.27)
—(g)
December
31,
2015
10.07
.17
(.48)
(.31)
(.18)
(.64)
December
31,
2014
10.23
.31
.07
.38
(.30)
(.24)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
47
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.52)
9.22
11.35
202,451
.33
.15
.35
4
(.90)
8.76
(8.05)
190,042
.31
.15
3.69
18
(.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
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
48
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019
,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
3,856
Administration
fees
7,002
Transfer
agent
fees
725
$
11,583
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
RIC
Commodity
Strategies
Fund
$
5,452
$
440
$
30
$
(3
)
$
235
$
6,094
$
—
$
—
RIC
Global
Infrastructure
Fund
3,455
61
459
20
651
3,728
12
—
RIF
Global
Real
Estate
Securities
Fund
4,989
154
472
(34
)
707
5,344
33
—
RIC
Sustainable
Equity
Fund
8,815
236
671
55
1,273
9,708
8
—
RIC
U.S.
Dynamic
Equity
Fund
6,146
232
410
(148
)
1,349
7,169
11
—
RIF
U.S.
Small
Cap
Equity
Fund
19,347
1,143
308
(20
)
3,166
23,328
25
—
RIF
U.S.
Strategic
Equity
Fund
15,797
722
1,263
(151
)
3,066
18,171
52
176
RIC
Opportunistic
Credit
Fund
2,281
97
126
(5
)
140
2,387
42
—
RIC
Unconstrained
Total
Return
Fund
22,086
980
790
(11
)
461
22,726
167
—
RIF
Strategic
Bond
Fund
9,871
321
650
—
545
10,087
72
—
RIC
Emerging
Markets
Fund
14,843
1,289
1,408
(176
)
1,956
16,504
—
—
RIC
Global
Equity
Fund
32,301
1,015
2,045
(445
)
5,219
36,045
—
—
RIF
International
Developed
Markets
Fund
31,817
1,444
1,583
(305
)
4,026
35,399
62
—
U.S.
Cash
Management
Fund
19
—
—
—
—
19
—
—
$
177,219
$
8,134
$
10,215
$
(1,223
)
$
22,794
$
196,709
$
484
$
176
Cost
of
Investments
$
183,203,000
Unrealized
Appreciation
$
17,105,655
Unrealized
Depreciation
(4,444,517)
Net
Unrealized
Appreciation
(Depreciation)
$
12,661,138
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2019
(Unaudited)
Equity
Growth
Strategy
Fund
49
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2019
to
June
30,
2019
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2019
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2019
$
1,125
.60
$
1,024
.05
Expenses
Paid
During
Period*
$
0
.79
$
0
.75
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.15%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
Equity
Growth
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
96.2%
Alternative
-
6.3%
RIC
Commodity
Strategies
Fund
Class
Y
271,525
1,407
RIC
Global
Infrastructure
Fund
Class
Y
89,120
1,016
RIF
Global
Real
Estate
Securities
Fund
40,865
619
3,042
Domestic
Equities
-
32.5%
RIC
Sustainable
Equity
Fund
Class
Y
64,608
3,394
RIC
U.S.
Dynamic
Equity
Fund
Class
Y
355,940
2,524
RIF
U.S.
Small
Cap
Equity
Fund
504,234
6,943
RIF
U.S.
Strategic
Equity
Fund
175,694
2,732
15,593
Fixed
Income
-
8.2%
RIC
Opportunistic
Credit
Fund
Class
Y
39,900
381
RIC
Unconstrained
Total
Return
Fund
Class
Y
359,258
3,571
3,952
International
Equities
-
49.2%
RIC
Emerging
Markets
Fund
Class
Y
272,868
5,133
RIC
Global
Equity
Fund
Class
Y
1,025,621
9,968
RIF
International
Developed
Markets
Fund
756,729
8,483
23,584
Total
Investments
in
Affiliated
Funds
(cost
$40,321)
46,171
Short-Term
Investments
-
0.0%
U.S.
Cash
Management
Fund(@)
20,119
(∞)
20
Total
Short-Term
Investments
(cost
$20)
20
Total
Investments
96.2%
(identified
cost
$40,341)
46,191
Other
Assets
and
Liabilities,
Net
-
3.8%
1,799
Net
Assets
-
100.0%
47,990
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
51
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Amsterdam
Index
Futures
3
EUR
337
07/19
5
CAC40
Euro
Index
Futures
20
EUR
1,107
07/19
31
DAX
Index
Futures
2
EUR
619
09/19
7
Dow
Jones
U.S.
Real
Estate
Index
Futures
66
USD
2,285
09/19
(32)
Euro
STOXX
50
Index
Futures
18
EUR
624
09/19
21
FTSE
100
Index
Futures
7
GBP
516
09/19
7
FTSE/MIB
Index
Futures
2
EUR
212
09/19
5
IBEX
35
Index
Futures
3
EUR
275
07/19
2
MSCI
EAFE
Index
Futures
8
USD
769
09/19
21
OMXS30
Index
Futures
13
SEK
2,107
07/19
4
Russell
1000
E-Mini
Index
Futures
1
USD
82
09/19
2
SPI
200
Index
Futures
3
AUD
492
09/19
4
TOPIX
Index
Futures
4
JPY
62,039
09/19
(2)
Short
Positions
MSCI
Emerging
Markets
Index
Futures
45
USD
2,370
09/19
(85)
NASDAQ
100
E-Mini
Index
Futures
16
USD
2,463
09/19
(60)
Russell
2000
E-Mini
Index
Futures
23
USD
1,802
09/19
(44)
S&P
500
E-Mini
Index
Futures
6
USD
883
09/19
(15)
S&P
Financial
Select
Sector
Index
Futures
12
USD
1,020
09/19
(20)
S&P
Mid
400
E-Mini
Index
Futures
1
USD
195
09/19
(3)
United
States
5
Year
Treasury
Note
Futures
13
USD
1,536
09/19
(19)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(171)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
Montreal
USD
308
AUD
443
09/18/19
3
Bank
of
Montreal
USD
171
CAD
227
09/18/19
3
Bank
of
Montreal
USD
352
JPY
37,862
09/18/19
2
Bank
of
Montreal
USD
8
ZAR
115
09/18/19
—
Bank
of
Montreal
CHF
223
USD
226
09/18/19
(3)
Bank
of
Montreal
EUR
882
USD
1,005
09/18/19
(4)
Bank
of
Montreal
GBP
420
USD
535
09/18/19
—
Bank
of
Montreal
MXN
2,025
USD
104
09/18/19
—
Bank
of
Montreal
SEK
375
USD
40
09/18/19
(1)
Bank
of
Montreal
SGD
22
USD
16
09/18/19
—
Royal
Bank
of
Canada
USD
308
AUD
443
09/18/19
4
Royal
Bank
of
Canada
USD
171
CAD
227
09/18/19
2
Royal
Bank
of
Canada
USD
352
JPY
37,862
09/18/19
1
Royal
Bank
of
Canada
USD
8
ZAR
115
09/18/19
—
Royal
Bank
of
Canada
CHF
223
USD
226
09/18/19
(3)
Royal
Bank
of
Canada
EUR
882
USD
1,006
09/18/19
(3)
Royal
Bank
of
Canada
GBP
420
USD
536
09/18/19
1
Royal
Bank
of
Canada
HKD
360
USD
46
09/18/19
—
Royal
Bank
of
Canada
MXN
2,025
USD
104
09/18/19
—
Royal
Bank
of
Canada
SEK
375
USD
40
09/18/19
(1)
Royal
Bank
of
Canada
SGD
22
USD
16
09/18/19
—
Standard
Chartered
HKD
360
USD
46
09/18/19
—
State
Street
USD
506
CNY
3,500
09/18/19
4
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
52
Equity
Growth
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
State
Street
USD
23
RUB
1,490
09/18/19
1
State
Street
BRL
980
USD
251
09/18/19
(3)
State
Street
INR
12,940
USD
185
09/18/19
(1)
State
Street
KRW
116,630
USD
99
09/18/19
(2)
State
Street
TWD
9,520
USD
305
09/18/19
(4)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(4)
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
Emerging
Markets
Index
Bank
of
America
Sell
USD
100
1.000%
(2)
06/20/24
(3)
—
(3)
CDX
NA
High
Yield
Index
Bank
of
America
Purchase
USD
1,300
(5.000%)
(2)
06/20/24
(83)
(18)
(101)
Total
Open
Credit
Indices
Contracts
(å)
(86)
(18)
(104)
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
53
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Investments
in
Affiliated
Funds
$
46,171
$
—
$
—
$
—
$
46,171
96.2
Short-Term
Investments
—
—
—
20
20
—
*
Total
Investments
46,171
—
—
20
46,191
96.2
Other
Assets
and
Liabilities,
Net
3.
8
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
10
9
—
—
—
10
9
0.
2
Foreign
Currency
Exchange
Contracts
—
2
1
—
—
2
1
—
*
'
Liabilities
Futures
Contracts
(2
80
)
—
—
—
(2
80
)
(0.
6
)
Foreign
Currency
Exchange
Contracts
—
(2
5
)
—
—
(2
5
)
(—)
*
Credit
Default
Swap
Contracts
—
(104)
—
—
(104)
(0.2)
Total
Other
Financial
Instruments
**
$
(171)
$
(108)
$
—
$
—
$
(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
June
30,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
54
Equity
Growth
Strategy
Fund
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
21
$
—
Variation
margin
on
futures
contracts*
109
—
—
—
Total
$
109
$
—
$
21
$
—
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
261
$
—
$
—
$
19
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
25
—
Credit
default
swap
contracts,
at
fair
value
—
104
—
—
Total
$
261
$
104
$
25
$
19
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
41
5
$
—
$
—
$
20
Options
written
(158)
—
—
—
Total
return
swap
contracts
(508)
—
—
—
Credit
default
swap
contracts
—
24
—
—
Foreign
currency
exchange
contracts
—
—
25
—
Total
$
(25
1)
$
24
$
25
$
20
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments**
$
122
$
—
$
—
$
—
Futures
contracts
33
—
—
(34)
Options
written
11
—
—
—
Total
return
swap
contracts
68
—
—
—
Credit
default
swap
contracts
—
(83)
—
—
Foreign
currency
exchange
contracts
—
—
50
—
Total
$
234
$
(83)
$
50
$
(34)
*
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
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.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
55
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
21
$
—
$
21
Total
Financial
and
Derivative
Assets
21
—
21
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
21
$
—
$
21
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
Montreal
$
8
$
8
$
—
$
—
Royal
Bank
of
Canada
9
8
—
1
State
Street
4
4
—
—
Total
$
21
$
20
$
—
$
1
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2019
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
56
Equity
Growth
Strategy
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
25
$
—
$
25
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
104
—
104
Total
Financial
and
Derivative
Liabilities
129
—
129
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(100)
—
(100)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
29
$
—
$
29
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
America
$
3
$
3
$
—
$
—
Bank
of
Montreal
9
8
—
1
Royal
Bank
of
Canada
8
8
—
—
State
Street
9
4
—
5
Total
$
29
$
2
3
$
—
$
6
^ 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.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
57
Statement
of
Assets
and
Liabilities
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
40,341
Investments,
at
fair
value(>)
...........................................................................................................................................................
46,191
Cash
...............................................................................................................................................................................................
985
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
2
1
Receivables:
Fund
shares
sold
................................................................................................................................................................
2
From
affiliates
....................................................................................................................................................................
5
From
broker(a)
...................................................................................................................................................................
13,084
Variation
margin
on
futures
contracts
.................................................................................................................................
86
Total
assets
.................................................................................................................................................
60,37
4
Liabilities
Payables:
Due
to
broker
(b)(c)
............................................................................................................................................................
11,956
Investments
purchased
......................................................................................................................................................
1
Accrued
fees
to
affiliates
....................................................................................................................................................
2
Other
accrued
expenses
.....................................................................................................................................................
39
Variation
margin
on
futures
contracts
.................................................................................................................................
257
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
25
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
104
Total
liabilities
.............................................................................................................................................
12,38
4
Net
Assets
............................................................................................................................................................
$
47,990
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
58
Equity
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2019
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
2,27
0
Shares
of
beneficial
interest
...........................................................................................................................................................
5
6
Additional
paid-in
capital
..............................................................................................................................................................
45,664
Net
Assets
............................................................................................................................................................
$
47,99
0
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
8.64
Net
assets
...............................................................................................................................................................................
$
47,990,359
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
5,552,389
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(86)
(>)
Investments
in
affiliated
funds
$
46,191
(a)
Receivable
from
Broker
for
Swaps
$
13,084
(b) Due
to
Broker
for
Futures
$
11,885
(c)
Due
to
Broker
for
Swaps
$
71
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
59
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2019
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distribution
from
affiliated
funds
..........................................................................................................................
$
79
Interest
..............................................................................................................................................................................
1
Total
investment
income
...............................................................................................................................................................
80
Expenses
Advisory
fees
....................................................................................................................................................................
48
Administrative
fees
...........................................................................................................................................................
10
Custodian
fees
...................................................................................................................................................................
24
Transfer
agent
fees
............................................................................................................................................................
1
Professional
fees
...............................................................................................................................................................
19
Trustees’
fees
....................................................................................................................................................................
1
Printing
fees
......................................................................................................................................................................
7
Miscellaneous
...................................................................................................................................................................
5
Expenses
before
reductions
..............................................................................................................................................
115
Expense
reductions
...........................................................................................................................................................
(7
9
)
Net
expenses
.................................................................................................................................................................................
36
Net
investment
income
(loss)
........................................................................................................................................................
44
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(644)
Futures
contracts
..............................................................................................................................................................
435
Options
written
.................................................................................................................................................................
(15
8
)
Foreign
currency
exchange
contracts
................................................................................................................................
25
Total
return
swap
contracts
...............................................................................................................................................
(508)
Credit
default
swap
contracts
............................................................................................................................................
24
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
28
Net
realized
gain
(loss)
..................................................................................................................................................................
(79
8
)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
122
Investments
in
affiliated
funds
..........................................................................................................................................
6,392
Futures
contracts
..............................................................................................................................................................
(1)
Options
written
.................................................................................................................................................................
11
Foreign
currency
exchange
contracts
................................................................................................................................
5
0
Total
return
swap
contracts
...............................................................................................................................................
68
Credit
default
swap
contracts
............................................................................................................................................
(83)
Foreign
currency-related
transactions
...............................................................................................................................
(7)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
6,55
2
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
5,75
4
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
5,79
8
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
60
Equity
Growth
Strategy
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2019
(Unaudited)
Fiscal
Year
Ended
December
31,
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
44
$
2,043
Net
realized
gain
(loss)
......................................................................................................................
(798)
3,5
88
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
6,55
2
(10,67
5
)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
5,79
8
(5,04
4
)
Distributions
To
shareholders
.................................................................................................................................
(3,020)
(5,072)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(3,020)
(5,072)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(2,41
8
)
1,80
0
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
3
60
(8,31
6
)
Net
Assets
Beginning
of
period
.................................................................................................................................
47,63
0
55,946
End
of
period
..........................................................................................................................................
$
47,99
0
$
47,63
0
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2019
and
December
31,
2018
were
as
follows:
2019
(Unaudited)
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
98
$
83
6
363
$
3,462
Proceeds
from
reinvestment
of
distributions
359
3,02
0
571
5,072
Payments
for
shares
redeemed
(740)
(6,27
4
)
(712)
(6,73
4
)
Total
increase
(decrease)
(283)
$
(2,41
8
)
222
$
1,80
0
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
62
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2019(1)
8.16
.01
1.00
1.01
—
(.53)
December
31,
2018
9.97
.36
(1.26)
(.90)
(.48)
(.43)
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
63
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.53)
8.64
12.56
47,990
.48
.15
.18
4
(.91)
8.16
(9.55)
47,630
.43
.15
3.73
21
(.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
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
64
Equity
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2019,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
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
June
30,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Administration
fees
$
1,667
Transfer
agent
fees
173
Trustee
fees
15
$
1,855
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
RIC
Commodity
Strategies
Fund
$
1,333
$
156
$
144
$
(89
)
$
151
$
1,407
$
—
$
—
RIC
Global
Infrastructure
Fund
979
30
181
8
180
1,016
3
—
RIF
Global
Real
Estate
Securities
Fund
600
32
94
1
80
619
4
—
RIC
Sustainable
Equity
Fund
3,269
92
448
65
416
3,394
3
—
RIC
U.S.
Dynamic
Equity
Fund
2,368
96
389
(151
)
600
2,524
4
—
RIF
U.S.
Small
Cap
Equity
Fund
6,338
436
854
(82
)
1,105
6,943
8
—
RIF
U.S.
Strategic
Equity
Fund
2,574
125
427
78
382
2,732
8
28
RIC
Opportunistic
Credit
Fund
377
26
44
(1
)
23
381
7
—
RIC
Unconstrained
Total
Return
Fund
3,591
257
350
(2
)
75
3,571
26
—
RIC
Emerging
Markets
Fund
5,048
392
892
2
583
5,133
—
—
RIC
Global
Equity
Fund
9,591
305
1,312
(270
)
1,654
9,968
—
—
RIF
International
Developed
Markets
Fund
8,226
319
1,002
(203
)
1,143
8,483
16
—
U.S.
Cash
Management
Fund
20
—
—
—
—
20
—
—
$
44,314
$
2,266
$
6,137
$
(644
)
$
6,392
$
46,191
$
79
$
28
Cost
of
Investments
$
42,714,210
Unrealized
Appreciation
$
3,860,779
Unrealized
Depreciation
(660,384)
Net
Unrealized
Appreciation
(Depreciation)
$
3,200,395
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Schedule
of
Investments
—
June
30,
2019
(Unaudited)
Notes
to
Schedule
of
Investments
65
Footnotes:
Abbreviations:
(å)
Currency
balances
were
pledged
in
connection
with
futures
contracts
purchased
(sold),
options
written,
foreign
currency
exchange
contracts,
or
swaps
entered
into
by
the
Fund.
See
Statement
of
Assets
and
Liabilities.
(ÿ)
Notional
Amount
in
thousands.
(∞)
Unrounded
units.
(@)
Affiliate.
(1)
Monthly
payment
frequency.
(2)
Quarterly
payment
frequency.
(3)
Semi-annual
payment
frequency.
(4)
Annual
payment
frequency.
(5)
Payment
at
termination.
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Schedule
of
Investments,
continued
—
June
30,
2019
(Unaudited)
66
Notes
to
Schedule
of
Investments
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
yuan
renminbi
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
Russell
Investment
Funds
LifePoints
®
Variable
Target
Portfolio
Series
Notes
to
Financial
Highlights
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Highlights
67
(1)
For
the
period
ended
June
30,
2019
(Unaudited).
(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)
Periods
less
than
one
year
are
not
annualized.
(d)
The
ratios
for
periods
less
than
one
year
are
annualized.
(e)
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.
(f)
May
reflect
amounts
waived
and
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(g)
Less
than
$.01
per
share.
(h)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements
—
June
30,
2019
(Unaudited)
68
Notes
to
Financial
Statements
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
a
Second
Amended
and
Restated
Master
Trust
Agreement
dated
March
1,
2018,
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
equivalents
(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
in
shares
of
several
other
RIF
Funds
and
in
certain
Russell
Investment
Company
(“RIC”)
Funds
(the
“Underlying
Funds”).
Each
Fund
seeks
to
achieve
its
specific
investment
objective
by
investing
in
different
combinations
of
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
(such
as
asset
class,
currency,
capitalization
size,
industry,
sector,
region,
credit
exposure,
country
risk,
yield
curve
positioning
or
interest
rates)
by
investing
in
derivatives,
including
futures,
options,
forwards
and
swaps,
that
RIM
believes
will
achieve
the
desired
exposures
for
the
Funds.
Derivatives
may
be
used
to
take
long
or
short
positions.
A
Fund
may
hold
cash
in
connection
with
these
investment
strategies.
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
the
Funds'
approximate
expected
target
strategic
asset
allocation
effective
on
or
about
May
1,
2019
to
equity,
fixed
income,
multi-asset,
and
alternative
asset
classes.
The
equity
Underlying
Funds
in
which
the
Funds
may
invest
include
the
RIC
Sustainable
Equity,
RIC
U.S.
Dynamic
Equity,
RIF
U.S.
Small
Cap
Equity,
RIF
U.S.
Strategic
Equity,
RIF
International
Developed
Markets,
RIC
Global
Equity
and
RIC
Emerging
Markets
Funds.
The
fixed
income
Underlying
Funds
in
which
the
Funds
may
invest
include
the
RIC
Opportunistic
Credit,
RIC
Unconstrained
Total
Return,
RIF
Strategic
Bond,
RIC
Investment
Grade
Bond
and
RIC
Short
Duration
Bond
Funds.
The
multi-asset
Underlying
Funds
in
which
the
Funds
may
invest
include
the
RIC
Multi-Strategy
Income
and
the
RIC
Multi-Asset
Growth
Strategy
Funds.
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.
*
Actual
asset
allocation
may
vary.
**
Alternative
Underlying
Funds
pursue
investment
strategies
that
differ
from
those
of
traditional
broad
market
equity
or
fixed
income
funds.
Asset
Allocation*
Moderate
Strategy
Fund
Balanced
Strategy
Fund
Growth
Strategy
Fund
Equity
Growth
Strategy
Fund
Equity
29.5%
51%
70%
85%
Fixed
Income
53%
38%
22%
7%
Multi-Asset
10%
4%
-%
-%
Alternative
**
7.5%
7%
8%
8%
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
69
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
August
2018,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2018-13,
Fair
Value
Measurement
(Topic
820):
Disclosure
Framework
-
Changes
to
the
Disclosure
Requirements
for
Fair
Value
Measurements.
The
amendments
in
the
ASU
modify
the
disclosure
requirements
on
fair
value
measurements
in
Topic
820.
The
ASU
is
effective
for
interim
and
annual
reporting
periods
beginning
after
December
15,
2019.
Management
is
currently
evaluating
the
impact,
if
any,
of
applying
this
provision
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements.
Reclassifications
Certain
prior
period
amounts
have
been
reclassified
to
conform
to
the
current
period
presentation.
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:
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
70
Notes
to
Financial
Statements
Equity
securities,
including
common
and
preferred
stock,
short
securities,
ETFs
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.
Investments
in
investment
funds
that
are
not
traded
on
a
national
securities
exchange
(or
reported
on
the
NASDAQ
national
market)
will
be
valued
based
upon
the
NAV
of
such
instruments.
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.
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
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
("OIS")
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
period
end.
For
the
period
ended
June
30,
2019,
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.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
71
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
Distributions
of
income
and
capital
gains
from
the
Funds
or
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.
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
June
30,
2019,
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,
2016
through
December
31,
2018,
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
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.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
72
Notes
to
Financial
Statements
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
investment
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
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.
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
Receivable
from
broker
and
Payable
due
to
broker
for
futures
and
swap
contracts.
Securities
and
cash
pledged
as
collateral
are
reflected
as
assets
on
the
Statements
of
Assets
and
Liabilities
as
either
a
component
of
Investments
at
fair
value
(securities)
or
Receivable
from
broker.
Cash
collateral
received
is
not
typically
held
in
a
segregated
account
and
as
such
is
reflected
as
a
liability
on
the
Statement
of
Assets
and
Liabilities
as
Due
to
broker.
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.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
73
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
June
30,
2019,
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
June
30,
2019,
the
following
Funds
entered
into
foreign
currency
exchange
contracts
primarily
for
the
strategies
listed
below:
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.
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
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
Outstanding
Contract
Amounts
Sold
Quarter
Ended
March
31,
2019
June
30,
2019
Moderate
Strategy
Fund
$
4,905,073
$
4,872,821
Balanced
Strategy
Fund
27,267,094
27,208,203
Growth
Strategy
Fund
20,864,821
20,806,082
Equity
Growth
Strategy
Fund
6,992,077
6,998,613
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2019
June
30,
2019
Moderate
Strategy
Fund
$
4,912,234
$
4,883,162
Balanced
Strategy
Fund
27,448,081
27,200,421
Growth
Strategy
Fund
21,076,097
20,854,961
Equity
Growth
Strategy
Fund
7,038,708
7,004,671
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
74
Notes
to
Financial
Statements
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
June
30,
2019,
the
Funds
purchased
or
sold
options
primarily
for
the
strategies
listed
below:
The
Funds’
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.
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
June
30,
2019,
the
following
Funds
entered
into
futures
contracts
primarily
for
the
strategies
listed
below:
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.
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
Notional
of
Options
Contracts
Outstanding
Funds
March
31,
2019
June
30,
2019
Moderate
Strategy
Fund
$
46,749
$
—
Balanced
Strategy
Fund
249,327
—
Growth
Strategy
Fund
186,996
—
Equity
Growth
Strategy
Fund
46,749
—
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
Notional
of
Futures
Contracts
Outstanding
Funds
March
31,
2019
June
30,
2019
Moderate
Strategy
Fund
$
29,441,229
$
31,739,708
Balanced
Strategy
Fund
63,311,201
69,668,624
Growth
Strategy
Fund
72,687,385
89,617,357
Equity
Growth
Strategy
Fund
18,307,057
18,816,467
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
75
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.
Total
return
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
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.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
76
Notes
to
Financial
Statements
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).
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
June
30,
2019,
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
77
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
June
30,
2019,
the
Funds
entered
into
credit
default
swaps
primarily
for
the
strategies
listed
below:
The
Funds'
period
end
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.
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
June
30,
2019,
the
Funds
did
not
enter
into
any
total
return
swaps.
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
for
OTC
derivative
transactions
between
brokers
and
counterparties,
such
as
ISDA
Master
Agreements
and
Master
Forward
Agreements.
Certain
Funds
utilize
multiple
counterparties.
The
quantitative
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
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2019
June
30,
2019
Moderate
Strategy
Fund
$
14,700,000
$
16,700,000
Balanced
Strategy
Fund
23,100,000
23,100,000
Growth
Strategy
Fund
15,400,000
15,400,000
Equity
Growth
Strategy
Fund
1,400,000
1,400,000
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
78
Notes
to
Financial
Statements
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.
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.
Investment
Transactions
Securities
During
the
period
ended
June
30,
2019,
purchases
and
sales
of
investment
securities
(excluding
short-term
investments,
options
and
futures)
were
as
follows:
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
June
30,
2019,
the
Funds
had
invested
$49,364
in
the
U.S.
Cash
Management
Fund.
Purchases
Sales
Moderate
Strategy
Fund
$
4,452,438
$
9,421,424
Balanced
Strategy
Fund
9,312,598
19,893,836
Growth
Strategy
Fund
8,133,533
10,214,868
Equity
Growth
Strategy
Fund
2,265,772
6,136,787
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
Notes
to
Financial
Statements
79
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
June
30,
2019:
RIM
has
agreed
to
certain
waivers
of
its
advisory
fees
as
follows:
For
the
Moderate
Strategy
Fund,
RIM
has
contractually
agreed,
until
April
30,
2020,
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,
2020,
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,
2020,
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,
2020,
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
June
30,
2019,
RIM
waived/reimbursed
the
following
expenses:
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
Advisory
Administrative
Moderate
Strategy
Fund
$
101,404
$
21,548
Balanced
Strategy
Fund
258,866
55,009
Growth
Strategy
Fund
198,725
42,229
Equity
Growth
Strategy
Fund
48,435
10,293
Waiver
Reimbursement
Total
Moderate
Strategy
Fund
$
101,404
$
17,146
$
118,550
Balanced
Strategy
Fund
226,820
—
226,820
Growth
Strategy
Fund
175,199
—
175,199
Equity
Growth
Strategy
Fund
48,435
30,382
78,817
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2019
(Unaudited)
80
Notes
to
Financial
Statements
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
June
30,
2019
were
as
follows:
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
June
30,
2019,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$894,250.
Federal
Income
Taxes
At
June
30,
2019,
the
Funds
did
not
have
any
capital
losses
available
for
carryforwards.
Record
Ownership
As
of
June
30,
2019,
the
following
table
includes
shareholders
of
record
with
greater
than
10%
of
the
total
outstanding
shares
of
each
respective
Fund.
Subsequent
Events
Management
has
evaluated
the
events
and/or
transactions
that
have
occurred
through
the
date
the
financial
statements
were
issued
and
noted
no
items
requiring
adjustments
to
the
financial
statements
or
additional
disclosure.
On
July
2,
2019,
the
Board
declared
dividends
payable
from
net
investment
income.
Dividends
were
paid
on
July
5,
2019
to
shareholders
of
record
effective
with
the
opening
on
July
3,
2019.
Amount
Moderate
Strategy
Fund
$
2,096
Balanced
Strategy
Fund
5,348
Growth
Strategy
Fund
4,105
Equity
Growth
Strategy
Fund
1,000
#
of
Shareholders
%
Moderate
Strategy
Fund
1
88.8
Balanced
Strategy
Fund
1
89.9
Growth
Strategy
Fund
2
97.7
Equity
Growth
Strategy
Fund
2
97.2
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement
—(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
81
The
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
requires
that
the
Board
of
Trustees
(the
“Board”),
including
a
majority
of
its
members
who
are
not
considered
to
be
“interested
persons”
under
the
1940
Act
(the
“Independent
Trustees”)
voting
separately,
approve
for
an
initial
term
not
to
exceed
two
years
and,
thereafter,
approve
the
continuation
of
the
advisory
agreement
with
Russell
Investment
Management,
LLC
(“RIM”)
(the
“RIM
Agreement”)
and
the
portfolio
management
contract
with
each
Money
Manager
of
the
funds
(collectively,
the
“portfolio
management
contracts”
and,
with
the
RIM
Agreement,
the
“Agreements”)
in
which
the
Funds
invest
(the
“Underlying
Funds”)
on
at
least
an
annual
basis
and
that
the
terms
and
conditions
of
the
RIM
Agreement
and
the
terms
and
conditions
of
each
portfolio
management
contract
provide
for
its
termination
if
continuation
is
not
approved
annually.
The
Board,
including
all
of
the
Independent
Trustees,
considered
and
approved
the
continuation
of
the
Agreements
at
a
meeting
held
in
person
on
May
20,
2019
(the
“Agreement
Evaluation
Meeting”).
During
the
course
of
a
year,
the
Trustees
receive
a
wide
variety
of
materials
regarding,
among
other
things,
the
investment
performance
of
the
Funds
and
Underlying
Funds,
sales
and
redemptions
of
the
Funds’
and
Underlying
Funds’
shares,
management
of
the
Funds
and
the
Underlying
Funds
and
other
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
and
compliance
with
applicable
regulatory
requirements.
In
preparation
for
the
annual
review,
the
Independent
Trustees,
with
the
advice
and
assistance
of
their
independent
counsel
(“Independent
Counsel”),
also
requested
and
the
Board
considered
(1)
information
and
reports
prepared
by
RIM
relating
to
the
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
to
the
Funds
and
the
Underlying
Funds;
(2)
information
and
reports
prepared
by
RIM
relating
to
the
profitability
of
each
Fund
and
Underlying
Fund
to
RIM
(and
its
affiliates);
and
(3)
information
received
from
an
independent,
nationally
recognized
provider
of
investment
company
information
comparing
the
performance
of
the
Funds
and
the
Underlying
Funds
and
their
respective
operating
expenses
over
various
periods
of
time
with
other
peer
funds
not
managed
by
RIM,
believed
by
the
provider
to
be
generally
comparable
to
the
Funds
and
the
Underlying
Funds
(the
“Third-Party
Information”).
In
the
case
of
each
Fund,
its
other
peer
funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Comparable
Funds,”
and,
with
the
Fund,
such
Comparable
Funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Performance
Universe”
in
the
case
of
performance
comparisons
and
the
Fund’s
“Expense
Universe”
in
the
case
of
operating
expense
comparisons.
The
foregoing
and
other
information
received
by
the
Board,
including
the
Independent
Trustees,
in
connection
with
its
evaluations
of
the
Agreements
are
collectively
called
the
“Agreement
Evaluation
Information.”
The
Trustees’
evaluations
also
reflected
the
knowledge
and
familiarity
gained
as
Board
members
of
the
Funds
and
the
other
RIM-managed
funds
for
which
the
Board
has
supervisory
responsibility,
including
the
Underlying
Funds
(“Other
RIM
Funds”),
with
respect
to
services
provided
by
RIM,
RIM’s
affiliates
and
each
Money
Manager.
The
Trustees
received
a
memorandum
from
counsel
to
the
Funds
and
the
Underlying
Funds
(“Fund
Counsel”)
discussing
the
legal
standards
for
their
consideration
of
the
continuations
of
the
Agreements,
and
the
Independent
Trustees
separately
received
a
memorandum
regarding
their
responsibilities
from
Independent
Counsel.
At
a
meeting
held
in
person
on
April
30,
2019
(the
“Agreement
Information
Review
Meeting,”),
the
Board,
including
the
Independent
Trustees,
in
preparation
for
the
Agreement
Evaluation
Meeting,
met
with
representatives
of
RIM;
met
in
an
executive
session
with
a
representative
of
TA
Associates
Management,
L.P.
(“TA
Associates”),
at
which
the
Chief
Operating
Officer
(“COO”)
of
RIM’s
parent
company
was
present;
and
then
the
Independent
Trustees
met
in
a
private
session
with
Independent
Counsel
at
which
no
representatives
of
RIM
or
the
Funds’
management
were
present
to
review
the
Agreement
Evaluation
Information
received
to
that
date
and,
on
the
basis
of
that
review,
communicated
additional
questions
and
requested
additional
Agreement
Evaluation
Information.
Certain
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
was
received
on
May
10,
2019.
On
May
14,
2019,
the
Independent
Trustees
met
by
conference
telephone
call
in
private
session
with
Independent
Counsel
to
further
discuss
the
Agreement
Evaluation
Information
and
review
the
additional
Agreement
Evaluation
Information.
On
May
14,
2019,
following
the
aforementioned
conference
call,
the
Board
Chair
met
in-person
with
representatives
of
management.
At
the
Agreement
Evaluation
Meeting,
the
Independent
Trustees
again
met
in
person
in
a
private
session
with
Independent
Counsel
to
review
additional
or
revised
Agreement
Evaluation
Information
received
to
that
date.
At
the
Agreement
Evaluation
Meeting,
the
Board,
including
the
Independent
Trustees,
considered
the
proposed
continuance
of
the
Agreements
with
RIM,
Fund
management,
Independent
Counsel
and
Fund
Counsel.
The
Board
considered
that
the
Agreement
Evaluation
Information
and
presentations
made
by
RIM
at
the
Agreement
Evaluation
Meeting
as
part
of
this
review
encompassed
the
Funds
and
all
Other
RIM
Funds.
Information
received
by
the
Board,
including
the
Independent
Trustees,
prior
to
and
at
the
Agreement
Information
Review
Meeting,
the
Agreement
Evaluation
Meeting
and
other
meetings
identified
above
is
included
in
the
Agreement
Evaluation
Information.
Prior
to
voting
at
the
Agreement
Evaluation
Meeting,
the
Independent
Trustees
met
in
private
session
with
Independent
Counsel
to
consider
Agreement
Evaluation
Information
received
from
RIM
and
management
at
and
prior
to
the
Agreement
Evaluation
Meeting.
The
discussion
below
reflects
all
of
these
reviews.
In
evaluating
the
Agreements,
the
Board
considered
that
each
of
the
Underlying
Funds
employs
a
manager-of-managers
method
of
investment
and
RIM’s
past
expressed
belief
that
the
Underlying
Funds,
in
employing
a
manager-of-managers
method
of
investment,
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
82
Basis
for
Approval
of
Investment
Advisory
Agreement
operate
in
a
manner
that
is
different
from
most
other
investment
companies.
In
the
case
of
most
other
investment
companies,
an
investment
advisory
fee
is
paid
by
the
investment
company
to
its
adviser
which,
in
turn,
employs
and
compensates
individual
portfolio
managers
to
make
specific
securities
selections
consistent
with
the
adviser’s
style
and
investment
philosophy.
In
the
case
of
the
Underlying
Funds,
RIM,
however,
has
engaged
multiple
unaffiliated
Money
Managers.
RIM
is
responsible
for
paying
fees
for
Money
Managers
(“Money
Manager
Fees”)
out
of
the
fees
paid
by
the
Underlying
Funds
to
RIM
for
its
services
under
the
RIM
Agreement
(the
“Advisory
Fee”).
A
Money
Manager
may
have
(1)
a
discretionary
asset
management
assignment
pursuant
to
which
it
is
allocated
a
portion
of
an
Underlying
Fund’s
assets
to
manage
directly
in
its
discretion;
(2)
a
non-discretionary
assignment
pursuant
to
which
it
provides
a
model
portfolio
to
RIM
representing
its
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
an
Underlying
Fund;
or
(3)
both
a
discretionary
and
a
non-discretionary
assignment.
Money
Managers
may
be
paid
fees
at
a
lower
rate
for
non-discretionary
services
than
discretionary
services.
The
Board
considered
that
RIM
(rather
than
any
Money
Manager
in
the
case
of
Underlying
Funds)
is
responsible
under
the
RIM
Agreement
for
determining,
implementing
and
maintaining
the
investment
program
for
each
Fund
and,
in
conducting
each
Fund’s
investment
program,
allocating
assets
of
such
Fund
principally
among
its
Underlying
Funds.
The
assets
of
each
Fund
are
principally
invested
in
different
combinations
of
the
Underlying
Funds
pursuant
to
target
asset
allocations
set
by
RIM.
RIM
analyzes
opportunities
and
risks
at
the
aggregate
level
of
the
four
main
asset
classes
–
equities,
fixed
income,
multi-asset
and
alternatives
–
and
monitors
exposure
to
such
asset
classes
using
analytical
tools
to
ensure
that
any
deviations
from
the
target
asset
allocations
are
intentional
and
tactical.
RIM
continually
evaluates
each
Fund’s
allocation
between
asset
classes
to
ensure
that
the
allocations
optimally
match
the
Fund’s
stated
investment
objectives
and
risks
profile.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
seek
to
actively
manage
each
Fund’s
overall
exposures
(such
as
asset
class,
currency,
capitalization
size,
industry,
sector,
region,
credit
exposure,
country
risk,
yield
curve
positioning
or
interest
rates)
by
investing
in
derivatives
that
RIM
believes
will
achieve
the
desired
exposures
for
the
Fund.
RIM
may
modify
the
target
asset
allocation
for
any
Fund
and/or
the
Underlying
Funds
in
which
the
Funds
invest.
The
overall
performance
of
each
Fund
therefore
has
reflected,
in
part,
the
performance
of
RIM
in
designing
the
investment
program
of
the
Fund
and
in
determining
the
Funds’
target
strategic
asset
allocations.
The
overall
performance
of
each
Fund
also
has
reflected
the
performance
of
RIM
in
managing
its
Underlying
Funds.
The
Board
considered
that,
although
RIM
traditionally
has
managed
Underlying
Fund
exposures
through
the
selection
of
and
allocations
to
Money
Manager
strategies,
innovations
in
RIM
portfolio
management
techniques
together
with
evolutions
in
available
technology,
tools
and
analytics
have
resulted
in
certain
changes
in
RIM’s
approach
to
its
Underlying
Fund
investment
advisory
services.
In
this
regard,
assets
of
each
Underlying
Fund
continue
to
be
allocated
among
RIM
and
the
multiple
Money
Manager
strategies
selected
by
RIM
for
that
Underlying
Fund.
In
addition,
RIM
continues
to
manage
the
investment
of
each
Underlying
Fund’s
cash
and
portions
of
an
Underlying
Fund
during
transitions
between
discretionary
Money
Managers.
RIM
also
continues
to
manage
directly
any
portion
of
each
Underlying
Fund’s
assets
that
RIM
determines
not
to
allocate
to
Money
Manager
strategies.
The
Underlying
Funds
usually,
but
not
always,
pursue
a
strategy
to
be
fully
invested
by
exposing
all
or
a
portion
of
their
cash
to
the
performance
of
appropriate
markets
by
purchasing
equity
securities,
fixed
income
securities
and/or
derivatives,
which
typically
include
futures
contracts.
This
cash
“equitization”
strategy
is
managed
by
RIM.
With
respect
to
the
portion
of
a
Fund
that
RIM
manages
based
upon
Money
Manager
model
portfolios,
RIM
constructs
a
portfolio
that
represents
the
aggregation
of
the
model
portfolios
based
upon
RIM’s
allocation
to
each
Money
Manager’s
strategy
through
an
“enhanced
portfolio
implementation,”
or
“emulation,”
process
designed
to
capture
return
streams
of
multiple
managers
in
a
centralized
portfolio.
RIM
then
implements
the
portfolio
consistent
with
the
aggregation
of
the
model
portfolios,
but
may
deviate
from
such
aggregation
for
the
purposes
of
exposure
and
transaction
cost
management.
RIM
noted
that
the
Funds
may
benefit
from
emulation
through,
among
other
things,
improved
incremental
returns
over
time
due
to
lower
aggregate
transaction
costs
and
turnover
from
reduced
trading
volumes,
and
that
emulation
provides
more
flexibility
for
enhanced
tax
management.
In
all
cases,
Underlying
Fund
assets
are
managed
directly
by
RIM
pursuant
to
authority
provided
by
the
RIM
Agreement.
The
Board
noted
the
variety
and
complexity
of
investment
advisory
services
that
RIM
has
provided
directly
or,
through
the
Underlying
Funds,
indirectly
to
the
Funds
under
the
RIM
Agreement.
In
the
case
of
Underlying
Funds,
RIM
is
responsible
for
selecting,
subject
to
Board
approval,
Money
Managers
for
each
Underlying
Fund
and
for
actively
managing
allocations
and
reallocations
of
its
assets
among
the
Money
Manager
strategies
and
RIM
itself.
Each
discretionary
Money
Manager
for
an
Underlying
Fund
in
effect
performs
the
function
of
an
individual
portfolio
manager
who
is
responsible
for
selecting
portfolio
securities
for
the
portion
of
the
Underlying
Fund
assigned
to
it
by
RIM
in
accordance
with
the
Underlying
Fund’s
applicable
investment
objective,
policies
and
restrictions,
any
specific
parameters
placed
by
RIM
upon
their
selection
of
portfolio
securities
and
the
Money
Manager’s
specified
role
in
an
Underlying
Fund.
For
each
Underlying
Fund,
RIM
is
responsible
for,
among
other
things,
providing
each
Money
Manager
with
a
statement
of
the
investment
parameters
and
policies
for
the
Underlying
Fund
and
any
specific
investment
restrictions;
monitoring
the
performance
of
each
Money
Manager
and
Underlying
Fund;
generally
supervising
compliance
by
each
Money
Manager
with
each
Underlying
Fund’s
investment
objective
and
policies;
with
respect
to
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
83
Underlying
Funds
with
non-discretionary
Money
Managers,
purchasing
and
selling
securities
for
the
Underlying
Funds
based
on
model
portfolios
representing
the
investment
recommendations
of
the
non-discretionary
Money
Managers;
managing
Underlying
Fund
assets
that
are
not
allocated
to
Money
Manager
strategies;
managing
the
Funds’
and
Underlying
Funds’
cash
balances;
and
recommending
at
least
annually
to
the
Board
whether
portfolio
management
contracts
should
be
renewed,
modified
or
terminated.
In
addition
to
its
annual
recommendation
as
to
the
renewal,
modification
or
termination
of
portfolio
management
contracts,
RIM
is
responsible
for
recommending
to
the
Board
additions
or
terminations
of
new
Money
Managers
or
replacements
of
existing
Money
Managers
at
any
time
when,
based
on
RIM’s
research
and
ongoing
review
and
analysis,
such
actions
are,
in
RIM’s
judgment,
appropriate.
RIM
may
impose
specific
investment
or
strategy
parameters
from
time
to
time
on
each
Money
Manager
intended
to
capitalize
on
the
strengths
of
that
Money
Manager
or
to
coordinate
the
investment
activities
of
Money
Managers
for
the
Underlying
Fund
in
a
complementary
manner.
Therefore,
RIM’s
selection
of
Money
Managers
for
an
Underlying
Fund
is
made
not
only
on
the
basis
of
performance
considerations
but
also
on
the
basis
of
other
factors,
including
anticipated
compatibility
with
other
Money
Managers
in
the
same
Underlying
Fund.
In
light
of
the
foregoing,
the
overall
performance
of
each
Underlying
Fund
has
reflected,
in
great
part,
the
performance
of
RIM
in
designing
the
Underlying
Fund’s
investment
program,
structuring
the
Underlying
Fund,
selecting
effective
Money
Managers,
and
allocating
assets
among
the
Money
Manager
strategies
and
RIM
in
a
manner
designed
to
achieve
the
investment
objectives
of
the
Underlying
Fund.
In
the
Agreement
Evaluation
Information,
RIM
noted
the
broad
array
of
investment
management
services
provided
to
the
Underlying
Funds
by
RIM
compared
to
the
relatively
narrow
portfolio
management
services
provided
to
the
Underlying
Funds
by
Money
Managers.
RIM
has
advised
the
Board
that
while
its
portfolio
construction
process
is
“investment
led
and
designed
to
be
conducted
in
a
manner
that
is
consistent
with
its
fiduciary
duties,”
RIM
establishes
a
reasonable
Money
Manager
fee
target
(“Fee
Target”
or
“Fee
Targets”)
for
each
Underlying
Fund
to
provide
a
cost
framework
for
portfolio
construction.
RIM
in
the
Agreement
Evaluation
Information
advised
the
Board
that
Money
Manager
Fees,
in
the
aggregate,
“must
allow
RIM
to
remain
a
going
concern
with
sufficient
resources
to
provide
required
services
to
the
Funds
and
to
earn
a
reasonable
profit.”
RIM
further
advised
the
Board
that
RIM
portfolio
managers
utilize
a
number
of
tools
in
the
portfolio
construction
process
in
order
to
meet
an
Underlying
Fund’s
objective
taking
into
account
Fee
Targets.
These
tools
include,
among
others,
Money
Manager
selection,
Money
Manager
allocation,
Money
Manager
fee
negotiations,
guideline
customization
and
Direct
Management
Services
(as
defined
below).
RIM
has
advised
the
Board
that
Fee
Targets
for
particular
Underlying
Funds
may
be
adjusted
(higher
or
lower)
from
time
to
time.
The
Board
considered
that
the
prospectuses
for
the
Funds
and
the
Underlying
Funds
and
other
public
disclosures
have
emphasized,
and
continue
to
emphasize,
to
investors
RIM’s
role
as
the
principal
investment
manager
for
each
Underlying
Fund,
rather
than
the
investment
selection
or
recommendation
role
of
these
Underlying
Funds’
Money
Managers,
and
describe
the
manner
in
which
the
Funds
or
Underlying
Funds
operate
so
that
investors
may
take
that
information
into
account
when
deciding
to
purchase
shares
of
any
such
Fund.
The
Board
further
considered
that
Fund
investors
in
pursuing
their
investment
goals
and
objectives
likely
purchased
their
shares
on
the
basis
of
this
information
and
RIM’s
reputation
for
and
performance
record
in
managing
the
manager-of-managers
structure
of
the
Underlying
Funds.
The
Board
also
considered
the
demands
and
complexity
of
managing
the
Underlying
Funds
pursuant
to
the
manager-of-managers
structure,
the
special
expertise
of
RIM
with
respect
to
the
manager-of-managers
structure
of
the
Underlying
Funds
and
the
possibility
that,
at
the
current
expense
ratio
of
each
Underlying
Fund,
there
might
be
no
acceptable
alternative
investment
managers
to
replace
RIM
on
comparable
terms
given
the
need
to
continue
the
manager-of-managers
strategy
of
such
Underlying
Fund
selected
by
shareholders
in
purchasing
their
shares
In
addition
to
these
general
factors
relating
to
the
manager-of-managers
structure
of
the
Underlying
Funds,
the
Trustees
considered,
with
respect
to
each
Fund
and
Underlying
Fund,
various
specific
factors
in
evaluating
renewal
of
the
RIM
Agreement,
including
the
following:
1.
The
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
or
the
Underlying
Fund
by
RIM;
2.
The
Advisory
Fee
paid
by
the
Fund
or
the
Underlying
Fund
to
RIM
and
the
fact
that
it
encompasses
all
investment
advisory
fees
paid
by
the
Fund
or
Underlying
Fund,
including,
in
the
case
of
Underlying
Funds,
the
fact
that
RIM
pays
all
Money
Manager
Fees
out
of
its
Advisory
Fee;
3.
Information
provided
by
RIM
as
to
other
fees
and
benefits
received
by
RIM
or
its
affiliates
in
connection
with
the
Fund
or
the
Underlying
Fund,
including
any
administrative
or
transfer
agent
fees
and
any
fees
received
for
management
or
administration
of
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
84
Basis
for
Approval
of
Investment
Advisory
Agreement
uninvested
cash
and
securities
lending
cash
collateral,
soft
dollar
arrangements
and
commissions
in
connection
with
portfolio
securities
and
foreign
exchange
transactions;
4.
Information
provided
by
RIM
as
to
expenses
incurred
by
the
Fund
or
Underlying
Fund;
5.
Information
provided
by
RIM
as
to
the
profits
that
RIM
derives
from
its
mutual
fund
operations
generally
and
from
the
Fund
or
the
Underlying
Fund;
and
6.
Information
provided
by
RIM
concerning
economies
of
scale
and
whether
any
scale
economies
are
adequately
shared
with
the
Fund
or
the
Underlying
Fund.
In
evaluating
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
which
are
expected
to
be
provided,
to
the
Funds
or
the
Underlying
Funds,
including
Fund
portfolio
management
services,
the
Board
discussed
with
senior
representatives
of
Russell
Investments
(as
defined
below)
the
impact
on
the
Funds
of
significant
changes
in
Russell
Investments’
senior
management
and
personnel
providing
investment
management
and
other
services
to
the
Funds
and
the
Underlying
Funds
in
the
past
year,
including
the
Chief
Investment
Officer
of
RIM
and
the
Funds.
The
Board
also
discussed
with
senior
representatives
of
Russell
Investments
the
lengthier
implementation
of
changes
to
operational
and
data
infrastructure
supporting
various
services
provided
by
RIM
to
the
Funds
and
the
Underlying
Funds,
including
RIM’s
Direct
Management
Services
(as
defined
below)
and
new
and/or
complex
investment
products
or
services
(the
“operational
and
data
infrastructure
initiatives”).
The
Board
also
discussed
the
Funds’
compliance
program
and
certain
items
reported
in
the
annual
report
of
the
Funds’
Chief
Compliance
Officer
(“CCO”)
required
under
Rule
38a-1
of
the
Investment
Company
Act
of
1940,
as
amended
(the
“Annual
Report”)
with
the
CCO
and
RIM’s
senior
management.
In
particular,
the
Board
expressed
its
continuing
concerns
with
respect
to
certain
items
reported
in
the
Annual
Report
relating
to
the
portions
of
Underlying
Funds
that
are
managed
directly
by
RIM
and
new
and/or
complex
investment
products
or
services.
The
CCO
and
RIM
senior
management
provided
an
update
on
the
implementation
status
of
the
operational
and
data
infrastructure
initiatives,
noting
that
these
initiatives,
as
well
as
other
changes
already
implemented
and
in
process,
should
address
certain
concerns
posed
by
the
Board
regarding
these
items.
The
CCO
and
RIM
senior
management
advised
the
Board
that
the
Funds’
compliance
program
meets
the
standards
of
Rule
38a-1
under
1940
Act.
Since
June
1,
2016,
RIM
has
been
an
indirect
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company
through
which
the
limited
partners
of
certain
private
equity
funds
affiliated
with
TA
Associates
indirectly
have
a
majority
ownership
interest
through
alternative
investment
vehicles
and
the
limited
partners
of
certain
private
equity
funds
affiliated
with
Reverence
Capital
Partners,
L.P.
(“Reverence
Capital”)
indirectly
have
a
significant
minority
controlling
ownership
interest
through
certain
Reverence
Capital
funds
and
alternative
investment
vehicles
in
RIM
and
its
affiliates
(“Russell
Investments”).
In
connection
with
the
Board’s
initial
approval
of
the
RIM
Agreement,
TA
Associates
advised
the
Board
of
its
plans
ultimately
to
effect
a
sale
or
other
disposition
of
its
ownership
interest
in
Russell
Investments.
Any
such
future
transaction
(“Transaction”)
could
cause
a
change
of
control
of
RIM
resulting,
among
other
things,
in
an
assignment
and
termination
of
the
RIM
Agreement,
as
required
by
the
1940
Act,
and
by
the
terms
and
conditions
of
the
RIM
Agreement.
In
the
event
of
a
Transaction,
the
Board
would
be
required
to
consider
the
approval
of
the
terms
and
conditions
of
a
replacement
agreement
(“Successor
Agreement”)
for
the
RIM
Agreement
and
thereafter
to
submit
the
Successor
Agreement
to
each
Fund’s
shareholders
for
approval,
as
required
by
the
1940
Act.
At
the
Agreement
Information
Review
Meeting,
the
Board
met
in
executive
session
with
a
representative
of
TA
Associates,
at
which
the
COO
was
present,
to
discuss,
among
other
things,
the
status
of
its
indirect
investment
in
RIM
and
RIM’s
access
to
sufficient
resources
to
support
its
activities
in
respect
of
the
Funds.
The
Board
was
not
advised
of
any
change
in
TA
Associates’
plans
regarding
its
ownership
interest
in
Russell
Investments.
As
noted
above,
RIM,
in
addition
to
managing
the
investment
of
each
Underlying
Fund’s
cash,
directly
manages
a
portion
(which
may
represent
a
significant
portion)
of
the
Underlying
Funds
pursuant
to
the
RIM
Agreement,
the
actual
allocation
of
Underlying
Fund
assets
among
Money
Manager
strategies
and
RIM
being
determined
from
time
to
time
by
the
RIM
portfolio
manager(s).
The
nature
and
scope
of
RIM’s
direct
management
of
Underlying
Fund
assets
has
evolved
over
the
past
several
years.
In
the
management
of
Underlying
Funds’
assets,
RIM
utilizes
quantitative
and/or
rules-based
processes
and
qualitative
analysis
to
assess
Underlying
Fund
characteristics
and
invests
in
securities
and
instruments
which
provide
the
desired
exposures
(such
as
volatility,
momentum,
value,
growth,
quality,
capitalization
size,
industry,
sector,
region,
currency,
commodity,
credit
or
mortgage
exposure,
country
risk,
yield
curve
positioning,
or
interest
rates).
RIM
may
utilize
tools
such
as
“optimization,”
which
involves
the
analysis
of
tradeoffs
between
various
risk
and
return
factors
as
well
as
turnover
and
transaction
costs,
in
order
to
estimate
optimal
portfolio
positioning.
RIM
may
use
strategies
based
on
indexes,
including
optimized
index
sampling
(strategies
that
seek
to
purchase
a
sampling
of
securities
using
optimization
and
risk
models)
and/or
index
replication.
RIM’s
direct
management
of
assets
for
these
purposes
is
hereinafter
referred
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
85
to
as
the
“Direct
Management
Services.”
The
Board
has
been
advised
that,
where
appropriate
in
its
judgment,
RIM
intends
to
continue
exploring
the
possible
expansion
of
its
Direct
Management
Services
whereby
RIM
expects
that
larger
portions
of
certain
Underlying
Funds
may
be
managed
directly
by
RIM
pursuant
to
the
Direct
Management
Services.
RIM
noted
that
its
portfolio
managers
combine
Money
Manager
strategies
and
RIM
Direct
Management
Services
for
the
Underlying
Funds
and
precisely
align
Underlying
Fund
exposures
with
RIM’s
preferred
positioning.
RIM’s
Direct
Management
Services
are
customized
portfolios
directly
managed
by
RIM
for
use
within
the
total
portfolio
of
each
Fund.
These
strategies
are
used
in
conjunction
with
allocations
to
Money
Manager
strategies
to
fully
reflect
RIM’s
strategic
and
dynamic
insights
with
integrated
liquidity
and
risk
management.
The
Board
considered
that
RIM
is
not
required
to
pay
Money
Manager
Fees
to
any
Money
Managers
with
respect
to
assets
for
which
it
provides
Direct
Management
Services
and
that
the
profits
derived
by
RIM
generally
and
from
the
Underlying
Funds
consequently
may
be
increased,
although
RIM
noted
that
it
may
incur
additional
costs
in
providing
Direct
Management
Services.
RIM
advised
the
Board
that
allocations,
or
increased
allocations,
of
Underlying
Fund
assets
to
Direct
Management
Services,
together
with
Money
Manager
selection,
allocations
among
Money
Manager
strategies,
renegotiation
of
Money
Manager
Fees
and
changes
in
existing
Money
Manager
assignments
from
discretionary
to
non-discretionary
assignments
where
there
is
a
related
Money
Manager
Fee
reduction
may
reduce
its
costs
of
providing
investment
advisory
services
to
the
Underlying
Funds,
which
would
benefit
RIM.
The
Board
considered
RIM’s
advice
that
any
such
benefit,
including
any
increased
profits
to
RIM,
ultimately
may
be
partially
offset
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Funds.
The
Board
also
considered
information
provided
by
RIM
as
to
the
potential
benefits
of
the
Direct
Management
Services
to
Underlying
Funds;
and
the
fact
that
the
aggregate
Advisory
Fees
paid
by
the
Underlying
Funds
are
not
increased
as
a
result
of
RIM’s
direct
management
of
Underlying
Fund
assets
as
part
of
the
Direct
Management
Services
or
otherwise.
The
Agreement
Evaluation
Information
outlined
various
changes
that
have
been
implemented
in
the
investment
program
for
the
Underlying
Funds
in
recent
years,
described
additional
current
and
expected
future
changes
and
described
the
impact
of
the
changes
that
have
been
or
will
be
implemented
in
the
investment
advisory
services
provided
to
the
Underlying
Funds
by
RIM,
including
the
following:
•
The
Direct
Management
Services
described
above.
•
RIM
advised
the
Board
that,
with
certain
exceptions,
in
2019
it
would
convert
all
remaining
discretionary
equity
Money
Managers
to
non-discretionary
assignments,
thereby
implementing
emulation
for
almost
all
Money
Manager
equity
assignments.
The
Board
considered
the
potential
impacts
described
in
the
Agreement
Evaluation
Information,
both
positive
and
negative,
on
the
Underlying
Funds
of
emulation.
RIM
noted
that,
in
implementing
emulation
for
Underlying
Funds,
it
assumes
various
risks,
including
trade
error
risk
as
it
takes
over
responsibility
for
trading.
RIM
generally
effects
Underlying
Fund
portfolio
transactions
through
an
affiliated
broker
that
receives
commissions
for
effecting
a
portion
of
these
transactions.
According
to
RIM,
the
Underlying
Funds
pay
the
same
commission
rates
regardless
of
whether
the
affiliate
receives
any
portion
of
the
commission.
•
RIM
advised
the
Board
that,
for
certain
Underlying
Funds,
it
has
reduced,
and
may
further
reduce,
the
number
of
Money
Managers
in
part
to
seek
more
concentrated
return
drivers.
Additionally,
RIM
advised
the
Board
that,
consistent
with
the
terms
of
the
manager-
of-managers
exemptive
order,
it
is
also
creating
manager
“bench”
lineups
for
certain
Underlying
Funds,
whereby
those
Underlying
Funds
would
have
approved
Money
Managers
that
are
not
funded
(i.e.
have
an
asset
allocation
of
zero).
As
the
agreements
with
these
bench
Money
Managers
would
already
be
approved
for
an
Underlying
Fund
by
the
Board
based
on
information
presented
at
the
time
of
approval,
RIM
would
be
able
to
allocate
assets
to
these
Money
Managers
without
proposing
a
new
portfolio
management
contract
for
Board
approval.
RIM
also
advised
the
Board
that
allocations
to
Direct
Management
Services
for
certain
Underlying
Funds
may
increase
to
accommodate
the
need
for
additional
overall
portfolio
exposure
management
that
may
arise
from
more
concentrated
Money
Manager
lineups.
•
RIM
advised
the
Board
of
its
expectation
that
lower
Money
Manager
Fees
will
continue
to
be
negotiated
with
Money
Managers.
Because
Money
Manager
Fees
are
paid
by
RIM
out
of
its
Advisory
Fee
from
the
Underlying
Funds,
each
of
the
foregoing
may
benefit
RIM
in
the
form
of
savings
to
RIM
from
reduced
Money
Manager
Fees.
RIM
noted
that
such
benefits
may
be
offset
partially
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
agreed
upon
separately
for
affected
Underlying
Funds.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
86
Basis
for
Approval
of
Investment
Advisory
Agreement
In
its
contract
renewal
deliberations,
the
Board
took
into
consideration
the
potential
benefits
to
the
Underlying
Funds,
described
by
RIM,
of
these
changes
in
their
manager-of-managers
investment
programs
and
RIM’s
potential
conflicts
of
interest
inherent
in
each
of
these
initiatives
and
considered
that,
while
reporting
procedures
would
provide
some
ability
for
the
Board
to
monitor
the
impact
of
such
conflicts
on
the
Underlying
Funds
and
the
profitability
of
the
Underlying
Fund
relationships
to
RIM,
such
reporting
procedures
would
not
eliminate
such
conflicts
of
interest
risks
to
the
Underlying
Funds.
The
Board
noted
that
changes
in
the
allocation
of
assets
among
Money
Manager
strategies
or
to
Direct
Management
Services
may
result
directly
in
higher
related
costs
to
affected
Underlying
Funds,
including
higher
brokerage
commissions
and
other
transaction
costs,
a
portion
of
which
is
paid
to
RIM’s
affiliated
broker
in
connection
with
execution
of
portfolio
transactions
in
connection
with
such
changes.
In
evaluating
the
Funds’
and
Underlying
Funds’
Advisory
Fees
in
light
of
Fund
and
Underlying
Fund
performance,
the
Board
considered
that,
in
the
Agreement
Evaluation
Information
and
at
past
meetings,
RIM
noted
differences
between
the
investment
strategies
of
certain
Underlying
Funds
and
their
respective
Comparable
Funds
in
pursuing
their
investment
objectives.
The
Third-Party
Information
included,
among
other
things,
comparisons
of
the
Funds’
Advisory
Fees
with
the
investment
advisory
fees
of
their
Comparable
Funds
on
an
actual
basis
(i.e.,
giving
effect
to
any
voluntary
fee
waivers
implemented
by
RIM
with
respect
to
a
Fund
and
by
the
managers
of
such
Fund’s
Comparable
Funds).
The
Third-Party
Information,
among
other
things,
showed
that
each
Fund
had
an
Advisory
Fee
which,
compared
with
the
investment
advisory
fees
of
its
respective
Comparable
Funds
on
an
actual
basis,
was
ranked
in
the
first
or
second
quintile
of
its
Expense
Universe
for
that
expense
component.
In
these
rankings,
the
first
quintile
represents
funds
with
the
lowest
investment
advisory
fees
of
its
comparable
Fund
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
investment
advisory
fees
among
the
Expense
Universe
funds.
The
comparisons
were
based
upon
the
latest
fiscal
years
for
the
Expense
Universe
funds.
RIM
noted
that
in
2019,
based
upon
discussions
with
the
Board,
the
methodology
used
by
the
independent
third-party
to
create
the
Funds’
Expense
Universes
was
changed
from
using
Lipper
investment
classifications
to
Morningstar
categories.
In
discussing
the
Advisory
Fees
for
the
Underlying
Funds
generally,
RIM
noted,
among
other
things,
that
its
Advisory
Fees
for
the
Underlying
Funds
encompass
services
that
are
typical
to
services
provided
by
investment
advisers
to
the
Underlying
Funds’
Comparable
Funds,
as
well
as
unique
services
that
are
distinctly
different
from
those
provided
by
investment
advisers
to
the
Underlying
Funds’
Comparable
Funds,
such
as
cash
equitization
and
transition
management
efforts
that
enable
efficient
and
cost-effective
asset
transition
events.
RIM
also
advised
the
Board
that
although
its
profitability
generally
and
from
its
relationships
with
the
Funds
and
Underlying
Funds
improved
in
2018,
its
pre-tax
“margins”
in
providing
investment
advisory
services
to
the
Funds
ranked
below
the
median
of
the
margins
of
public
investment
management
company
peers
based
on
a
survey
conducted
in
2017.
RIM
has
expressed
its
view
that
Advisory
Fees
should
also
be
considered
in
the
context
of
a
Fund’s
or
Underlying
Fund’s
total
expense
ratio
to
obtain
a
complete
picture.
The
Board
considers
each
Fund’s
and
Underlying
Fund’s
Advisory
Fee
on
both
a
standalone
basis
and
in
the
context
of
the
Fund’s
or
Underlying
Fund’s
total
expense
ratio.
The
Board
has
engaged,
and
continues
to
engage
in
discussions
with
RIM
to
identify
opportunities
and
establish
goals,
where
appropriate,
for
improving
the
total
expense
comparisons
for
certain
Funds
and
Underlying
Funds
relative
to
their
respective
Comparable
Funds
through
Advisory
Fee
waivers
or
expense
caps.
Based
upon
information
provided
by
RIM,
the
Board
considered
for
each
Fund
and
Underlying
Fund
whether
economies
of
scale
have
been
realized
and
whether
the
Advisory
Fee
for
such
Fund
or
Underlying
Fund
appropriately
reflects
or
should
be
revised
to
reflect
any
such
economies.
The
Board
considered,
among
other
things,
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Manager-of-Managers
Funds
as
well
as
net
Fund
redemptions
or
purchases
in
recent
years.
The
Funds
are
distributed
exclusively
through
variable
annuity
and
variable
life
insurance
contracts
issued
by
insurance
companies.
Currently,
the
Funds
are
made
available
to
holders
of
such
insurance
policies
(“Insurance
Contract
Holders”)
by
a
few
insurance
companies.
The
Funds
are
primarily
available
through,
and
their
assets
are
primarily
attributed
to,
The
Northwestern
Mutual
Life
Insurance
Company
(“Northwestern
Mutual”).
In
November
2018,
Northwestern
Mutual
discontinued
sales
of
the
RIF
International
Developed
Markets
Fund
to
new
Insurance
Contract
Holders
through
its
advisory
channel,
but
this
Fund
is
still
available
to
new
and
existing
Insurance
Contract
Holders
through
Northwestern
Mutual’s
brokerage
channel.
At
the
Agreement
Evaluation
Meeting,
RIM
expressed
its
belief
that
Northwestern
Mutual
does
not
intend
to
discontinue
sales
of
the
other
Funds
to
its
Insurance
Contract
Holders
through
its
advisory
channel.
However,
the
Board
received
no
direct
assurances
in
this
regard
from
Northwestern
Mutual.
If
Northwestern
Mutual
were
to
discontinue
its
participation
in
the
Funds,
the
Board
considered
that
it
is
unlikely
that
the
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
87
Funds
would
remain
viable.
RIM
has
advised
the
Board
that,
while
it
is
assessing
other
potential
opportunities,
it
does
not
expect
that
additional
insurance
companies
will
make
the
Funds
available
to
their
variable
annuity
or
variable
life
insurance
policyholders
in
the
near
term.
Notwithstanding
this
expectation,
RIM
expressed
its
belief
that
the
Funds
will
remain
viable
in
the
near
term.
The
Board
considered,
among
other
things,
the
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
variable
annuity
and
variable
life
insurance
policyholders.
With
respect
to
each
Fund,
the
Board
considered
any
Advisory
Fee
waivers
or
other
expense
limitation
arrangements
that
had
been
implemented
in
the
past
year
or
may
be
implemented
in
the
future.
The
Board
also
considered
that,
in
the
past
year,
RIM
has
renegotiated
fees
with
certain
Money
Managers
to
lower
levels;
changed
certain
Money
Manager
assignments
from
discretionary
to
non-discretionary;
reallocated
assets
among
Money
Managers;
hired
or
terminated
certain
Money
Managers,
including
in
connection
with
the
implementation
of
an
initiative
to
reduce
the
number
of
Money
Managers
for
each
Underlying
Fund;
and
increased
its
allocations
to
Direct
Management
Services
for
various
Underlying
Funds
in
recent
years,
each
of
which
alone
may
operate
to
reduce
RIM’s
costs
of
providing
investment
advisory
and
other
services
to
the
Underlying
Funds
contemplated
by
the
RIM
Agreement.
The
Board
also
considered
that
any
resulting
benefit
of
the
decrease
in
Money
Manager
Fees
paid
by
RIM
in
respect
of
an
Underlying
Fund
accrues
to
RIM,
rather
than
such
Fund.
The
Board
also
considered
RIM’s
advice
that
such
benefit
ultimately
may
be
partially
offset
by
any
new
or
additional
fee
waivers
or
expense
caps
on
such
Fund.
With
certain
exceptions,
the
Board
noted
RIM’s
stated
intention
to
convert
all
remaining
discretionary
equity
Money
Managers
to
non-
discretionary
assignments
in
2019,
thereby
implementing
emulation
for
almost
all
Money
Manager
equity
assignments.
The
Board
also
considered,
as
a
general
matter,
that
fees
payable
to
RIM
or
its
affiliates
by
institutional
clients
with
investment
objectives
similar
to
those
of
the
Funds
and
the
Underlying
Funds
are
lower,
and,
in
some
cases,
may
be
substantially
lower,
than
the
rates
paid
by
the
Funds,
the
Underlying
Funds
and
Other
RIM
Funds.
The
Trustees
considered
the
differences
in
the
nature
and
scope
of
services
RIM
provides
to
institutional
clients
and
the
Funds
and
the
Underlying
Funds.
RIM
explained,
among
other
things,
that
institutional
clients
have
fewer
compliance,
administrative
and
other
needs
than
the
Funds
and
the
Underlying
Funds.
RIM
also
noted
that
since
the
Funds
and
the
Underlying
Funds
must
constantly
issue
and
redeem
their
shares,
they
are
more
difficult
to
manage
than
institutional
accounts,
where
assets
are
relatively
stable.
In
addition,
RIM
noted
that
the
Funds
and
the
Underlying
Funds
are
subject
to
heightened
regulatory
requirements
relative
to
institutional
clients.
Accordingly,
the
Trustees
concluded
that
the
services
provided
to
the
Funds
and
Underlying
Funds
are
sufficiently
different
from
the
services
provided
to
the
other
clients
that
comparisons
are
not
probative
and
should
not
be
given
significant
weight.
With
respect
to
the
Funds’
total
expenses,
the
Third-Party
Information
showed
that
the
total
expenses
for
each
Fund
ranked
in
the
second
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
the
funds
with
the
lowest
total
expenses
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
total
expenses
among
the
Expense
Universe
funds.
On
the
basis
of
the
Agreement
Evaluation
Information,
and
other
information
previously
received
by
the
Board
from
RIM
during
the
course
of
prior
years,
or
presented
at
or
in
connection
with
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting
by
RIM,
the
Board,
in
respect
of
each
Fund
and
Underlying
Fund,
found,
after
giving
effect
to
any
applicable
waivers
and/or
reimbursements,
and
considering
any
differences
in
the
composition
of
the
Expense
Universe
and
investment
strategies
of
its
respective
Comparable
Funds
and
in
light
of
other
factors
discussed
above:
(1)
the
Advisory
Fee
charged
by
RIM
was
acceptable
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
advisory
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
or
Underlying
Fund
and
to
provide
continuity
of
investment
advisory
and
other
services
by
RIM
to
the
Fund
or
Underlying
Fund;
(2)
except
as
noted
above,
the
relative
expense
ratio
of
each
Fund
and
Underlying
Fund
either
was
comparable
to
those
of
its
Comparable
Funds
or
RIM
had
provided
an
explanation
satisfactory
to
the
Board
as
to
why
the
relative
expense
ratio
was
not
comparable
to
those
of
its
Comparable
Funds;
(3)
other
benefits
and
fees
received
by
RIM
or
its
affiliates
from
the
Fund
or
Underlying
Fund
identified
in
the
Agreement
Evaluation
Information
were
not
considered
to
be
excessive;
(4)
RIM’s
reported
profitability
with
respect
to
the
Fund
and
Underlying
Fund
was
not
considered
to
be
excessive
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided
by
RIM
and
applicable
judicial
and
regulatory
guidance;
and
(5)
the
Advisory
Fee
charged
by
RIM
appropriately
reflects
any
economies
of
scale
realized
by
such
Fund
or
Underlying
Fund
in
light
of
various
factors,
including
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
Insurance
Contract
Holders;
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Underlying
Funds;
and
RIM’s
advice
that
it
does
not
believe
it
will
experience
meaningful
economies
of
scale.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
88
Basis
for
Approval
of
Investment
Advisory
Agreement
The
Board
concluded
that,
under
the
circumstances
and
based
on
RIM’s
performance
information
and
reviews
for
each
Fund
and
Underlying
Fund,
the
performance
of
each
of
the
Funds
and
Underlying
Funds
is
consistent
with
continuation
of
the
RIM
Agreement.
The
Board
noted
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-
beating
returns
with
above-average
consistency.
In
assessing
the
performance
of
the
Funds
and
the
Underlying
Funds
with
at
least
three
years
of
performance
history,
the
Board
focused
upon
performance
for
the
3-year
period
ended
December
31,
2018
as
most
relevant,
but
also
considered
Fund
and
Underlying
Fund
performance
for
the
1-year
and,
where
applicable,
5-year
periods
ended
such
date.
In
reviewing
the
performance
of
the
Funds
and
Underlying
Funds
generally,
the
Board
took
into
consideration
various
steps
taken
by
RIM
in
the
past
year
to
enhance
the
performance
of
certain
Underlying
Funds,
including
changes
in
Money
Managers
or
their
allocations,
and
RIM’s
implementation
or
expansion
of
its
Direct
Management
Services
and
other
strategies,
which
may
not
yet
be
fully
reflected
in
Underlying
Fund
investment
results.
With
respect
to
the
Balanced
Strategy
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
was
ranked
in
the
fourth
quintile
of
its
Performance
Universe
for
each
of
the
1-year,
3-year
and
5-year
periods
ended
December
31,
2018.
The
Board
considered
RIM’s
explanation
that
the
Fund’s
underperformance
relative
to
its
Comparable
Funds
was
primarily
due
to
asset
allocation
differences
compared
to
the
Performance
Universe.
RIM
noted,
among
other
things,
that
the
Fund
has
exposure
to
more
diversified
growth-oriented
asset
classes
beyond
traditional
equities
(such
as
global
high
yield
debt,
emerging
market
debt,
global
real
estate,
infrastructure
and
commodities),
which
are
intended
to
provide
diversification
benefits
and
dampen
volatility.
RIM
explained
that
in
the
strong
rising
equity
environment
experienced
over
the
period,
the
Funds’
exposures
to
these
asset
classes,
particularly
to
commodities,
were
headwinds
relative
to
peers.
The
Board
also
considered
RIM’s
explanation
that
Funds
have
a
higher
non-U.S.
equity
allocation
and
less
U.S.
bias
than
peers,
which
negatively
impacted
peer-relative
performance
during
the
period.
The
Third-Party
Information
showed
that
the
performance
of
the
Moderate
Strategy
Fund
was
ranked
in
the
fourth
quintile
of
its
Performance
Universe
for
the
1-year
period
ended
December
31,
2018,
the
second
quintile
of
its
Performance
Universe
for
the
3-year
period
ended
such
date,
and
the
third
quintile
of
its
Performance
Universe
for
the
5-year
period
ended
such
date.
The
performance
of
the
Growth
Strategy
Fund
was
ranked
in
the
third
quintile
of
its
Performance
Universe
for
the
3-year
period
ended
December
31,
2018,
and
the
fourth
quintile
of
its
Performance
Universe
for
the
1-year
and
5-year
periods
ended
such
date.
The
performance
of
the
Equity
Growth
Strategy
Fund
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe
for
the
1-year
period
ended
December
31,
2018,
the
second
quintile
of
its
Performance
Universe
for
the
3-year
period
ended
such
date,
and
the
fourth
quintile
of
its
Performance
Universe
for
the
5-year
period
ended
such
date.
In
evaluating
performance,
the
Board
considered
each
Fund’s
and
Underlying
Fund’s
performance
not
only
relative
to
its
Comparable
Funds,
but
also
in
absolute
terms
and
relative
to
appropriate
benchmarks
and
indices.
The
Board
considered
the
Underlying
Funds’
performance
relative
to
their
benchmarks
in
light
of
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
For
the
1-year
period
ended
December
31,
2018,
the
RIC
Unconstrained
Total
Return
Fund
and
RIC
Global
Infrastructure
Fund
outperformed
their
benchmarks;
for
the
3-year
period
ended
December
31,
2018,
the
RIC
Short
Duration
Bond
Fund,
RIC
Multi-Strategy
Income
Fund
and
RIF
Global
Real
Estate
Securities
Fund
outperformed
their
benchmarks;
and
for
the
5-year
period
ended
December
31,
2018,
the
RIC
Short
Duration
Bond
Fund,
RIC
Global
Infrastructure
Fund
and
RIF
Global
Real
Estate
Securities
Fund
outperformed
their
benchmarks.
The
Board
also
considered
the
Money
Manager
changes
that
have
been
made
during
the
past
year
and
that
the
performance
of
Money
Managers
continues
to
impact
performance
of
the
Funds
and
Underlying
Funds
for
periods
prior
and
subsequent
to
their
termination,
and
that
any
incremental
positive
or
negative
impact
of
the
Direct
Management
Services
to
Underlying
Funds,
which
continue
to
evolve
in
nature
and
scope,
was
not
yet
fully
reflected
in
the
investment
results
of
the
Underlying
Funds.
Lastly,
the
Board
considered
the
implementation
of
additional
strategies
and
refinements
to
strategies
discussed
at
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting
and
prior
Board
meetings
that
may
be
employed
by
RIM
in
respect
of
certain
Funds
and
Underlying
Funds.
After
considering
the
foregoing
and
other
relevant
factors,
including
factors
described
above,
the
Board
concluded
in
respect
of
each
Fund
and
Underlying
Fund
that
continuation
of
the
RIM
Agreement
would
be
in
the
interests
of
such
Fund
and
its
shareholders
and
voted
to
approve
the
continuation
of
the
RIM
Agreement.
At
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting,
with
respect
to
the
evaluation
of
the
terms
of
portfolio
management
contracts
with
Money
Managers
for
the
Underlying
Funds,
the
Board
received
and
considered
information
from
RIM
reporting,
among
other
things,
for
each
Money
Manager,
the
Money
Manager’s
performance
over
various
periods;
RIM’s
assessment
of
the
performance
of
each
Money
Manager;
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Funds’
and
Underlying
Funds’
underwriter;
and
RIM’s
recommendation
to
retain
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
89
each
discretionary
or
non-discretionary
Money
Manager
on
the
current
terms
and
conditions,
including
at
the
current
fee
rate.
The
Board
received
reports
during
the
course
of
the
year
from
the
Funds’
CCO
regarding
her
assessments
of
Money
Manager
compliance
programs
and
any
compliance
issues.
RIM
did
not
identify
any
benefits
from
the
Funds’
portfolio
transactions
received
by
Money
Managers
or
their
affiliates
other
than
benefits
from
their
soft
dollar
arrangements
or
commissions
paid
to
any
affiliated
broker-dealer
through
which
a
Money
Manager
may
execute
trades.
The
Agreement
Evaluation
Information
described
RIM’s
oversight
of
Money
Manager
soft
dollar
arrangements.
The
Agreement
Evaluation
Information
expressed
RIM’s
belief
that,
based
upon
certifications
from
Money
Managers
and
pre-hire
and
ongoing
reviews
of
Money
Manager
soft
dollar
arrangements,
policies
and
procedures,
the
Money
Managers’
soft
dollar
arrangements,
the
policies
and
procedures
are
consistent
with
applicable
legal
standards
and
with
disclosures
made
by
Money
Managers
in
their
investment
adviser
registration
statements
filed
with
the
Securities
and
Exchange
Commission
and
by
the
Underlying
Funds
in
their
registration
statements.
The
Board
was
advised
that,
in
the
case
of
discretionary
Money
Managers
using
soft
dollar
arrangements,
the
CCO
may
from
time
to
time
request
that
Money
Managers
provide
information
regarding
their
soft
dollar
program
to
RIM.
The
CCO
and
RIM
do
not
obtain,
and
the
Agreement
Evaluation
Information
therefore
did
not
include,
information
regarding
the
value
of
soft
dollar
benefits
derived
by
Money
Managers
from
Underlying
Fund
portfolio
transactions.
RIM
recommended
that
each
of
the
Money
Managers
be
retained
for
its
current
discretionary
or
non-discretionary
assignment
at
its
current
fee
rate.
In
doing
so,
RIM,
as
it
has
in
the
past,
advised
the
Board
that
it
does
not
regard
Money
Manager
profitability
as
relevant
to
its
evaluation
of
the
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
is
aware
of
the
standard
fee
rates
charged
by
Money
Managers
to
other
clients;
and
RIM
believes
that
the
fees
agreed
upon
with
Money
Managers
are
reasonable
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered.
The
Board
accepted
RIM’s
explanation
of
the
relevance
of
Money
Manager
profitability
in
light
of
RIM’s
belief
that
such
fees
are
reasonable;
the
Board’s
findings
as
to
the
acceptability
of
the
Advisory
Fee
paid
by
each
Underlying
Fund;
and
the
fact
that
each
Money
Manager’s
fee
is
paid
by
RIM.
At
the
Agreement
Evaluation
Meeting,
RIM
reported
that
it
planned
to
recommend
to
the
Board
at
the
May
20-21,
2019
meeting
the
appointment
and
termination
of
certain
Money
Managers,
changes
from
discretionary
to
non-discretionary
assignments
for
certain
Money
Managers,
and
changes
to
the
fee
schedules
charged
by
certain
Money
Managers.
Based
upon
RIM’s
recommendations,
together
with
relevant
Agreement
Evaluation
Information,
the
Board
concluded
that
the
fees
paid
to
the
Money
Managers
of
each
Underlying
Fund
are
acceptable
in
light
of
RIM’s
assessment
of
quality
of
the
investment
advisory
services
provided
and
that
continuation
of
the
portfolio
management
contract
with
each
Money
Manager
of
each
Underlying
Fund
would
be
in
the
interests
of
such
Underlying
Fund
and
its
shareholders.
*
*
*
In
their
deliberations,
the
Trustees
did
not
identify
any
particular
information
as
to
the
RIM
Agreement
or,
other
than
RIM’s
recommendation,
the
portfolio
management
contract
with
any
Money
Manager
for
an
Underlying
Fund
that
was
all-important
or
controlling,
except,
in
the
case
of
the
RIM
Agreement,
the
need
to
continue
the
managers-of-managers
structure
of
the
Underlying
Funds,
and
each
Trustee
attributed
different
weights
to
the
various
factors
considered.
The
Trustees
evaluated
all
information
available
to
them
on
a
Fund-by-Fund
basis
and
their
determinations
were
made
in
respect
of
each
Fund
and
Underlying
Fund.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Shareholder
Requests
for
Additional
Information
—
June
30,
2019
(Unaudited)
90
Shareholder
Requests
for
Additional
Information
Each
Fund
files
portfolio
holdings
information
within
60
days
after
the
end
of
each
fiscal
quarter
as
an
exhibit
on
Form
N-PORT.
Portfolio
holdings
information
for
the
third
month
of
each
fiscal
quarter
is
publicly
available
on
the
SEC’s
website
at
http://www.sec.
gov.
Each
Fund’s
complete
schedule
of
portfolio
holdings
for
the
second
and
fourth
quarters
of
each
fiscal
year
is
included
in
the
semi-
annual
and
annual
reports
to
Fund
shareholders.
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,
2018
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.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers
—
June
30,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
91
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”;
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;
Ms.
Dien
Ledoux
has
had
investment
experience
as
a
portfolio
manager
and
has
had
experience
as
a
member
of
the
board
of
trustees
of
other
investment
companies;
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;
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;
and
Mr.
Zeschin
has
had
business,
financial
and
investment
experience
as
founder
and
partner
of
an
independent
investment
counsel
and
wealth
management
firm
serving
individuals
and
family
entities
with
substantial
assets,
and
as
a
member
of
the
board
of
another
investment
company.
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,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
INTERESTED
TRUSTEE
Mark
Spina,
#
Born
June
8,
1970
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2017
President
and
Chief
Executive
Officer
since
2017
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
chosen
and
qualified
by
Trustees
President
and
CEO,
RIC
and
RIF
Chairman
of
the
Board,
President,
Russell
Investments
Financial
Services,
LLC
(“RIFIS”)
Chairman
of
the
Board,
President,
Russell
Investments
Fund
Services,
LLC
(“RIFUS”)
Director,
RIM.
From
2015-2016,
Head
of
Intermediary
Distribution
and
President
of
Pioneer
Funds
Distributor
From
2008-2015
Head
of
Intermediary
Distribution,
Voya
Investment
Management
43
None
INDEPENDENT
TRUSTEES
Thaddas
L.
Alston,
Born
April
7,
1945
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2006
Appointed
until
successor
is
duly
elected
and
qualified
Senior
Vice
President,
Larco
Investments,
Ltd.
(real
estate
firm)
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2019
(Unaudited)
92
Disclosure
of
Information
about
Fund
Trustees
and
Officers
*
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.
Name,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
INDEPENDENT
TRUSTEES
(continued)
Kristianne
Blake,
Born
January
22,
1954
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2000
Chairman
since
2005
Appointed
until
successor
is
duly
elected
and
qualified
Approved
annually
Lead
Independent
Director,
Avista
Corp
(electric
utilities)
Until
May
2017,
Director
and
Chairman
of
the
Audit
Committee,
Avista
Corp
(electric
utilities)
Until
September
2018,
Regent,
University
of
Washington
President,
Kristianne
Gates
Blake,
P.S.
(accounting
services)
Until
June
2014,
Director,
Ecova
(total
energy
and
sustainability
management)
43
Lead
Independent
Director,
Avista
Corp
(electric
utilities)
Until
May
2017,
Director
Avista
Corp
(electric
Utilities)
Until
June
2014,
Director,
Ecova
(total
energy
and
sustainability
management)
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
93
Name,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
INDEPENDENT
TRUSTEES
(continued)
Cheryl
Burgermeister,
Born
June
26,
1951
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2012
Chairman
of
the
Audit
Committee
since
2017
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
duly
elected
and
qualified
Retired
Trustee
and
Chairperson
of
Select
Sector
SPDR
Funds
(investment
company)
Until
December
31,
2014,
Chairperson
of
Audit
Committee,
Select
Sector
SPDR
Funds
(investment
company)
43
Trustee
and
Chairperson
of
Select
Sector
SPDR
Funds
(investment
company)
From
August
2012
through
May
2016,
Trustee,
ALPS
Series
Trust
(investment
company)
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Katherine
W.
Krysty,
Born
December
3,
1951
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2014
Appointed
until
successor
is
duly
elected
and
qualified
Retired
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Julie
Dien
Ledoux,
Born
August
17,
1969
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2019
Appointed
until
successor
is
duly
elected
and
qualified
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
43
Until
March
2018,
Trustee,
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017
Trustee,
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2019
(Unaudited)
94
Disclosure
of
Information
about
Fund
Trustees
and
Officers
*
Each
Trustee
is
subject
to
mandatory
retirement
at
age
75.
Name,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
INDEPENDENT
TRUSTEES
(continued)
Raymond
P.
Tennison,
Jr.,
Born
December
21,
1955
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2000
Chairman
of
the
Nominating
and
Governance
Committee
since
2007
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
duly
elected
and
qualified
Retired
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Jack
R.
Thompson,
Born
March
21,
1949
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2005
Chairman
of
the
Investment
Committee
since
2015
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
duly
elected
and
qualified
Retired
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Jonathan
F.
Zeschin
Born
September
4,
1953
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2019
Appointed
until
successor
is
duly
elected
and
qualified
Founder
and
Partner,
Essential
Investment
Partners,
LLC
(investment
company)
43
Independent
Trustee
(since
2007)
and
Board
Chair
(since
2014),
Matthews
Asia
Funds
Name,
Age,
Address
Position(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
*
Principal
Occupation(s)
During
the
Past
5
Years
No.
of
Portfolios
in
Russell
Fund
Complex
Overseen
by
Trustee
Other
Directorships
Held
by
Trustee
During
the
Past
5
Years
TRUSTEE
EMERITUS
George
F.
Russell,
Jr.,
Born
July
3,
1932
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
Emeritus
and
Chairman
Emeritus
since
1999
Until
resignation
or
removal
Director
Emeritus,
RIM
43
None
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
95
Name,
Age,
Address
Positions(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
Principal
Occupation(s)
During
the
Past
5
Years
OFFICERS
Mark
Spina,
Born
June
8,
1970
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
President
and
Chief
Executive
Officer
since
2017
Until
successor
is
chosen
and
qualified
by
Trustees
President
and
Chief
Executive
Officer,
RIC
and
RIF
Chairman
of
the
Board,
President,
RIFIS
Chairman
of
the
Board,
RIFUS
Director,
RIM
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,
Born
December
16,
1966
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Chief
Compliance
Officer
since
2005
Until
removed
by
Independent
Trustees
Chief
Compliance
Officer,
RIC
and
RIF
Chief
Compliance
Officer,
RIFUS
2011
to
2016
Chief
Compliance
Officer,
U.S.
One
,
LLC
Mark
E.
Swanson,
Born
November
26,
1963
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Treasurer,
Chief
Accounting
Officer
and
Chief
Financial
Officer
since
1998
Until
successor
is
chosen
and
qualified
by
Trustees
Global
Head
of
Fund
Services,
Russell
Investments
Treasurer,
Chief
Accounting
Officer
and
CFO,
RIC
and
RIF
Director
and
President,
RIFUS
Director
RIM,
Russell
Investments
Trust
Company
(“RITC”)
and
RIFIS
President
and
Chief
Executive
Officer,
RIC
and
RIF,
June
2016
to
June
2017
Peter
Gunning,
Born
February
22,
1967
1301
Second
Avenue,
18th
Floor,
Seattle
WA
98101
Chief
Investment
Officer
since
2018
Until
removed
by
Trustees
Global
Chief
Investment
Officer,
Russell
Investments
Chief
Investment
Officer,
RIC
and
RIF
Chief
Investments
Officer,
Asia
Pacific,
Russell
Investments
President,
RIM
Mary
Beth
R.
Albaneze,
Born
April
25,
1969
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Secretary
since
2010
Until
successor
is
chosen
and
qualified
by
Trustees
Associate
General
Counsel,
Russell
Investments
Secretary,
RIM,
RIFUS
and
RIFIS
Secretary
and
Chief
Legal
Officer,
RIC
and
RIF
Assistant
Secretary,
U.S.
One,
LLC
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Adviser
and
Service
Providers
—
June
30,
2019
(Unaudited)
96
Adviser
and
Service
Providers
Interested
Trustee
Mark
Spina
Independent
Trustees
Thaddas
L.
Alston
Kristianne
Blake
Cheryl
Burgermeister
Katherine
W.
Krysty
Julie
Dien
Ledoux
Raymond
P.
Tennison,
Jr.
Jack
R.
Thompson
Jonathan
F.
Zeschin
Trustee
Emeritus
George
F.
Russell,
Jr.
Officers
Mark
Spina,
President
and
Chief
Executive
Officer
Mark
E.
Swanson,
Treasurer,
Chief
Accounting
Officer
and
Chief
Financial
Officer
Cheryl
Wichers,
Chief
Compliance
Officer
Peter
Gunning,
Chief
Investment
Officer
Mary
Beth
R.
Albaneze,
Secretary
Adviser
Russell
Investment
Management,
LLC
1301
Second
Avenue
Seattle,
WA
98101
Administrator
and
Transfer
and
Dividend
Disbursing
Agent
Russell
Investments
Fund
Services,
LLC
1301
Second
Avenue
Seattle,
WA
98101
Custodian
State
Street
Bank
and
Trust
Company
1
Heritage
Drive
North
Quincy,
MA
02171
Office
of
Shareholder
Inquiries
1301
Second
Avenue
Seattle,
WA
98101
(800)
787-7354
Legal
Counsel
Dechert
LLP
One
International
Place,
40th
Floor
100
Oliver
Street
Boston,
MA
02110
Distributor
Russell
Investments
Financial
Services,
LLC
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.
Russell
Investment
Funds
1301
Second
Avenue
Seattle,
Washington
98101
800-787-7354
Fax:
206-505-3495
https://russellinvestments.com
Item 2. Code of Ethics. [Annual Report Only]
Item 3. Audit Committee Financial Expert. [Annual Report Only]
Item 4. Principal Accountant Fees and Services. [Annual Report Only]
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)
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.(b)
(b) Certification for principal executive officer and 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 President and Chief Executive Officer, Russell Investment Funds
Date:
August 22, 2019Pursuant 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 Treasurer, Chief Accounting Officer and Chief Financial Officer, Russell Investment Funds
Date:
August 22, 2019