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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)
(Address of principal executive offices) (Zip code)
Mary Beth R. Albaneze, Secretary and Chief Legal Officer
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 December 31, 2019
Item 1. Reports to Stockholders
2019
ANNUAL
REPORT
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
DECEMBER
31,
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
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
In-
stead,
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
profes-
sional
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
To
Our
Shareholders
3
Moderate
Strategy
Fund
5
Balanced
Strategy
Fund
26
Growth
Strategy
Fund
46
Equity
Growth
Strategy
Fund
66
Notes
to
Schedule
of
Investments
86
Notes
to
Financial
Highlights
88
Notes
to
Financial
Statements
89
Report
of
Independent
Registered
Public
Accounting
Firm
103
Tax
Information
104
Shareholder
Requests
for
Additional
Information
105
Disclosure
of
Information
about
Fund
Trustees
and
Officers
106
Adviser
and
Service
Providers
111
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Annual
Report
December
31,
2019
Table
of
Contents
Russell
Investment
Funds
-
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Copyright
©
Russell
Investments
2020.
All
rights
reserved.
Russell
Investments’
ownership
is
composed
of
a
majority
stake
held
by
funds
managed
by
TA
Associates
with
minority
stakes
held
by
funds
managed
by
Reverence
Capital
Partners
and
Russell
Investments’
management.
Frank
Russell
Company
is
the
owner
of
the
Russell
trademark
contained
in
this
material
and
all
trademark
rights
related
to
the
Russell
trademarks,
which
the
members
of
the
Russell
Investment
group
of
companies
are
permitted
to
use
under
license
from
Frank
Russell
Company.
The
members
of
the
Russell
Investments
group
of
companies
are
not
affiliated
in
any
manner
with
Frank
Russell
Company
or
any
entity
operation
under
the
“FTSE
RUSSELL”
brand.
Fund
objectives,
risks,
charges
and
expenses
should
be
carefully
considered
before
in-
vesting.
A
prospectus
containing
this
and
other
important
information
must
precede
or
accompany
this
material.
Please
read
the
prospectus
carefully
before
investing.
Securities
distributed
through
Russell
Investments
Financial
Services,
LLC,
member
FINRA
and
part
of
Russell
Investments.
Indices
and
benchmarks
are
unmanaged
and
cannot
be
invested
in
directly.
Returns
represent
past
performance,
are
not
a
guarantee
of
future
performance,
and
are
not
indicative
of
any
specific
investment.
Index
return
information
is
provided
by
vendors
and
although
deemed
reliable,
is
not
guaranteed
by
Russell
Investments
or
its
affiliates.
Performance
quoted
represents
past
performance
and
does
not
guarantee
future
results.
The
investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
To
Our
Shareholders
To
Our
Shareholders
3
Fellow
Investors,
Your
financial
security
is
not
only
our
focus;
it
is
our
purpose.
We
believe
that
the
combination
of
our
investment
solutions,
a
sound
plan
and
timely
investment
advice
can
help
to
achieve
that
financial
security.
That
is
the
reason
we
work
hard
to
maintain
a
time-tested,
disciplined
investment
approach,
focused
on
meeting
the
financial
needs
of
clients
like
you.
Market
volatility
and
the
fear
of
a
recession
can
make
it
difficult
for
individuals
to
stick
to
an
investment
plan.
Some
investors
are
tempted
to
leave
sectors
too
early,
to
stay
in
too
long,
or
to
pull
out
too
much.
These
types
of
behavior
can
cause
the
less-disciplined
investor
to
fall
into
the
harmful
trap
of
buying
high
and
selling
low.
However,
we
believe
this
is
the
type
of
market
in
which
our
process
shines.
We
maintain
our
focus
and
look
to
position
our
funds
for
the
investing
environment
ahead,
not
the
one
that
has
just
passed.
With
this
in
mind,
we
hold
the
following
views
on
markets:
We
believe
in
the
importance
of
diversifying
globally.
International
investments
provide
diversification
relative
to
U.S.-based
investments
as
well
as
open
the
portfolio
up
to
additional
opportunities
outside
our
borders.
Within
our
equity
exposure,
we
have
an
underweight
preference
for
U.S.
equities,
driven
by
expensive
valuations
and
cycle
concerns.
We’re
broadly
neutral
on
developed
international
equities,
and
overweight
on
emerging
markets
equities,
driven
by
valuations.
Within
our
bond
exposure,
we
continue
to
diversify
across
sectors.
Additionally,
active
management
will
be
important
during
a
period
of
low
anticipated
fixed
income
returns.
2019
again
showed
that
volatility
is
still
present
in
the
market.
And
we
believe
uncertainty
about
future
market
downturns
helps
to
prove
the
value
of
a
disciplined
approach.
As
do,
in
our
view,
these
key
events
of
the
last
12
months:
Global
growth
concerns
and
geopolitical
tension
have
remained
in
investors’
thoughts.
Progress
in
U.S.-China
trade
talks
fluctuated
over
the
period,
with
both
countries
implementing
costly
tariffs,
which
has
impacted
financial
markets.
While
short-term
recession
risks
remain
low,
the
U.S.
yield
curve
is
signaling
that
the
risk
is
increasing.
The
U.S.
yield
curve
inverted
for
the
first
time
since
2007
as
government
bond
yields
sunk
to
new
depths.
1
The
U.S.
10-year
treasury
reached
its
lowest
since
2016
2
while
the
U.S.
30-year
yield
touched
an
all-time
bottom
in
August.
3
Nevertheless,
global
equities
have
ground
higher
amid
dovish
central
bank
policy.
The
Federal
Reserve
cut
rates
three
times,
while
the
European
Central
Bank
cut
rates
to
a
record
-0.5%
and
restarted
quantitative
easing.
4
China’s
central
bank
also
took
steps
to
stimulate
its
economy.
5
Volatility
spiked
at
points
over
the
year
6
,
but
equity
markets
have
not
touched
the
volatility
experienced
during
December
2018—where
a
Federal
Reserve
rate
increase
and
a
worsening
of
U.S.-China
tensions
led
investors
flight
to
safety.
7
2019
saw
positive
returns
from
major
asset
classes,
with
U.S.
large
cap
8
and
infrastructure
asset
classes
9
leading
the
way.
Even
with
strong
absolute
performance
it
has
not
been
without
bumps;
asset
class
leadership
can
change
month-to-month
and
quarter-to-quarter,
reinforcing
the
need
for
a
balanced
multi-asset
approach
to
investing.
Looking
forward
to
the
year
ahead,
we
believe
we
are
late
in
the
cycle;
with
some
bright
spots.
The
service
sector
is
still
robust
in
most
economies;
policy
stimulus
is
being
ramped
up,
with
many
central
banks
now
cutting
interest
rates
and
indicating
that
more
cuts
are
on
the
way;
and
an
easing
of
trade
tensions
seems
likely.
On
balance,
we
think
it
is
more
likely
that
the
combination
of
trade-war
resolution
and
policy
stimulus
will
see
the
global
economy
recover
in
2020.
However,
the
asymmetry
of
the
different
outcomes—bear
market
versus
limited
upside—keeps
us
cautious
until
there
is
more
clarity
on
the
trade
and
stimulus
outlook.
To
Our
Shareholders
4
To
Our
Shareholders
At
Russell
Investments,
our
purpose
is
to
improve
people’s
financial
security.
We
have
a
long
heritage
of
providing
multi-
asset
solutions
to
help
investors
like
you
reach
your
financial
goals,
whether
you’re
saving
for
retirement,
already
there
or
building
a
college
fund.
Thank
you
for
the
trust
you
have
placed
in
our
firm.
All
of
us
at
Russell
Investments
appreciate
the
opportunity
to
help
you
achieve
your
own
financial
security.
Best
regards,
Peter
Gunning
Global
Chief
Investment
Officer,
Russell
Investments
1
Source:
https://www.reuters.com/article/us-us-bonds-curve/u-s-treasury-bond-curve-inverts-for-first-time-since-2007-in-recession-warning-
idUSKCN1V4165
2
Source:
https://www.cnbc.com/2019/09/03/us-bonds-wall-street-monitors-economic-data-treasury-auctions.html
3
Source:
https://www.cnbc.com/2019/08/28/us-bonds-key-yield-curve-inverts-further-as-30-year-hits-record-low.html
4
Source:
https://www.marketwatch.com/story/ecb-cuts-key-rate-restarts-qe-as-it-attempts-to-revive-eurozone-economy-2019-09-12
5
Source:
https://www.reuters.com/article/us-china-economy-poll/chinas-2019-growth-seen-slowing-to-62-as-trade-war-weighs-idUSKCN1U514W
6
Source:
https://www.cnbc.com/2019/08/14/stock-markets-wall-street-in-focus-amid-earnings-economic-data.html
7
Source:
https://www.wsj.com/articles/the-battered-bull-market-is-limping-into-2019-11546425000
8
Source:
https://www.cnbc.com/2019/10/28/stock-market-investors-monitor-busiest-week-of-earnings-season.html
9
Source:
https://us.spindices.com/indices/equity/sp-global-infrastructure-index
Russell
Investment
Funds
Moderate
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
Moderate
Strategy
Fund
5
Moderate
Strategy
Fund
Total
Return
1
Year
12
.54%
5
Years
4
.48%§
10
Years
5
.73%§
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index**
Total
Return
1
Year
8
.72%
5
Years
3
.05%§
10
Years
3
.75%§
Russell
1000
®
Index***
Total
Return
1
Year
31
.43%
5
Years
11
.48%§
10
Years
13
.54%§
Russell
Investment
Funds
Moderate
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
6
Moderate
Strategy
Fund
The
Moderate
Strategy
Fund
(the
“Fund”)
is
a
fund
of
funds
that
invests
principally
in
other
Russell
Investment
Funds
(“RIF”)
and
Russell
Investment
Company
(“RIC”)
mutual
funds
(the
“Underlying
Funds”).
The
Underlying
Funds
employ
a
multi-
manager
approach
whereby
portions
of
the
Underlying
Funds
are
allocated
to
different
money
manager
strategies.
Underlying
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
and
Underlying
Funds’
advisor.
RIM,
as
the
Underlying
Funds’
advisor,
may
change
the
allocation
of
the
Underlying
Funds’
assets
among
money
managers
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
in
an
Underlying
Fund
at
any
time,
subject
to
approval
by
the
Underlying
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
an
Underlying
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
current
income
and
moderate
long
term
capital
appreciation.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
12.54%.
This
is
compared
to
the
Fund’s
primary
benchmark,
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
which
gained
8.72%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Allocation
–
30%
to
50%
Equity
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
15.26%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
The
Fund
seeks
to
achieve
its
objective
by
investing
in
Underlying
Funds
that
provide
exposure
to
a
range
of
diversified
investments,
and
most
major
asset
classes
invested
in
by
the
Underlying
Funds
produced
positive
absolute
returns
during
the
period.
Within
the
Fund’s
fixed
income
portfolio,
exposure
to
securitized
assets
was
beneficial,
as
a
strong
U.S.
consumer
and
the
low-
rate
environment
created
opportunities
within
prepayment
risk
assets.
The
low-rate
environment
was
also
beneficial
to
global
infrastructure
and
global
real
estate
investment
trusts
(“REITs”),
as
both
asset
classes
posted
strong
returns
over
the
period.
The
U.S.
equity
market,
as
broadly
measured
by
the
Russell
3000
®
Index,
surged
to
31.02%
at
period-end,
closing
out
a
strong
year.
From
a
style
perspective,
growth
outperformed
value.
From
a
sector
perspective,
information
technology
was
the
best
performing
sector,
while
health
care,
materials,
communication
services
and
financials
followed
closely
behind.
The
Fund’s
strategic
exposure
to
non-U.S.
equities
benefited
performance
over
the
period,
as
market
sentiment
in
emerging
markets
improved
due
to
apparent
progress
in
the
U.S.-China
trade
talks
and
a
“phase
one”
deal.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
the
Underlying
Funds
affect
the
Fund’s
performance?
The
Fund
is
a
fund
of
funds
and
its
performance
is
based
on
RIM’s
strategic
asset
allocations,
the
performance
of
the
Underlying
Funds
in
which
the
Fund
invests,
and
tactical
changes
in
the
Fund’s
asset
allocation
throughout
the
year.
In
order
to
seek
to
achieve
the
Fund’s
objective
during
the
period,
RIM’s
strategic
asset
allocation
included
investments
in
global
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds.
Broadly,
the
Fund’s
asset
allocation
was
a
positive
contributor
to
performance
relative
to
the
Fund’s
fixed
income
benchmark
during
the
period.
Allocations
to
global
real
estate
investment
trusts
and
infrastructure
benefited
the
Fund,
as
both
asset
classes
posted
strong
double-digit
returns.
Further,
allocations
to
non-
U.S.
equities
bolstered
returns
as
well,
outperforming
the
fixed
income
asset
class.
The
fixed
income
portion
of
the
Fund’s
portfolio
provided
positive
results
compared
to
the
Fund’s
fixed
income
benchmark.
An
allocation
to
the
RIF
Strategic
Bond
Fund
was
positive
from
a
benchmark-relative
perspective
as
a
result
of
its
exposure
to
securitized
credit,
which
generated
an
above
market
yield.
An
allocation
to
the
RIC
Investment
Grade
Bond
Fund
also
contributed
positively
as
a
result
of
the
Underlying
Fund’s
underweight
to
government
and
government-guaranteed
securities
and
an
overweight
to
securitized
credit.
An
allocation
to
the
RIC
Opportunistic
Credit
Fund
was
additive
due
to
its
higher
allocation
to
high
yield
relative
to
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
and
its
emerging
markets
currency
exposure
provided
a
significant
boost
to
active
returns.
While
the
broader
equity
markets
delivered
strong
absolute
performance
over
the
period,
the
Fund’s
equity
allocation
exceeded
the
Fund’s
fixed
income
benchmark.
However,
the
equity
Underlying
Funds
generally
underperformed
their
respective
equity
benchmarks.
The
RIC
Sustainable
Equity
Fund
underperformed
its
benchmark,
as
it
was
consistently
underweight
stocks
that
have
higher
momentum
and
expensive
valuations
and
overweight
stocks
with
higher
profitability.
Both
factor
tilts
negatively
impacted
benchmark-relative
performance
over
the
year.
The
RIF
International
Developed
Markets
Fund
Russell
Investment
Funds
Moderate
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
Moderate
Strategy
Fund
7
underperformed
its
benchmark
due
to
its
sector
allocations
–
for
instance,
an
underweight
to
health
care
and
overweight
to
communication
services
detracted.
A
tilt
toward
low
valuation
stocks
was
a
meaningful
driver
of
underperformance
for
the
RIC
U.S.
Dynamic
Equity
Fund.
Coupled
with
negative
stock
selection
within
the
information
technology
sector,
the
Underlying
Fund
underperformed
its
equity
benchmark.
The
alternative
assets
portion
of
the
Fund’s
portfolio
provided
positive
results
compared
to
the
Fund’s
fixed
income
benchmark.
The
RIF
Global
Real
Estate
Securities
Fund
outperformed
the
Fund’s
benchmark
due
to
the
overall
strength
of
the
asset
class
relative
to
fixed
income,
as
real
assets
were
bolstered
by
a
low
interest
rate
environment.
The
RIC
Global
Infrastructure
Fund
outperformed
both
the
Fund’s
fixed
income
benchmark
and
its
listed
infrastructure
benchmark
due
to
out-of-index
exposures
to
construction
and
engineering
and
specialized
REITs.
The
RIC
Commodity
Strategies
Fund
outperformed
its
benchmark
but
struggled
against
the
Fund’s
fixed
income
benchmark.
The
multi-asset
portion
of
the
Fund’s
portfolio
outperformed
the
Fund’s
fixed
income
benchmark.
The
RIC
Multi-Strategy
Income
Fund
benefited
from
overweight
positions
to
mortgage
back
securities
that
added
value
due
to
the
low
interest
rate
environment.
However,
the
Fund’s
regional
positioning
was
challenged
over
the
period,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
a
U.S.
equity
underweight.
Describe
any
changes
to
the
Fund’s
structure
or
allocation
to
the
Underlying
Funds.
RIM
has
the
discretion
to
vary
the
Fund’s
actual
allocation
from
the
target
strategic
asset
allocation
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
seek
to
actively
manage
a
Fund’s
overall
exposures
by
investing
in
derivatives
that
RIM
believes
will
achieve
the
desired
risk/return
profile
for
the
Fund.
RIM
continued
to
operate
the
Fund
as
a
risk
manager
rather
than
risk
taker
during
the
period.
RIM’s
tactical
regional
modifications
to
the
Fund’s
asset
allocation
versus
strategic
targets
were
challenged
during
the
period,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
U.S.
equity
underweight
while
U.S.
equity
led
global
market
performance.
In
terms
of
tactical
asset
class
modifications,
in
the
first
quarter
of
2019,
real
estate
exposure
was
added
given
attractive
valuations.
At
the
beginning
of
2019,
RIM
also
increased
exposure
to
high
yield
corporate
credit,
but
pared
back
as
spreads
compressed
to
expensive
levels.
Effective
on
November
13,
2019,
the
Fund’s
allocation
to
the
Underlying
Funds
in
which
it
invests
was
modified
to
an
approximate
target
allocation
of
34%
to
equity,
52%
to
fixed
income,
12%
to
multi-asset
and
2%
to
alternative
asset
classes.
RIM
manages
a
global
real
yield
positioning
strategy
and
a
currency
factor
positioning
strategy
for
the
Fund.
Using
futures,
the
global
high
real
yield
strategy
took
long
positions
in
high
quality
government
bonds
whose
net-of-inflation
yields
are
expected
to
be
relatively
high
and
short
positions
where
net-of-
inflation
yield
is
expected
to
be
relatively
low.
The
currency
factor
strategy
utilized
currency
forward
contracts
to
take
long
and
short
positions
in
global
foreign
exchange
markets.
The
global
real
yield
strategy
detracted
over
the
period
as
the
long
positions
underperformed,
with
the
cost
split
evenly
between
the
U.S.
and
Canada.
With
respect
to
the
currency
factor
strategy,
the
Fund’s
exposure
moderately
detracted.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
RIF
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Russell
Investment
Funds
Moderate
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
8
Moderate
Strategy
Fund
*
Assumes
initial
investment
on
January
1,
2010.
**
The
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
is
an
index,
with
income
reinvested,
generally
representative
of
intermediate-term
government
bonds,
investment
grade
corporate
debt
securities
and
mortgage-backed
securities.
***
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Moderate
Strategy
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
Moderate
Strategy
Fund
9
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
July
1,
2019
to
December
31,
201
9
.
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
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,039.20
$
1,024.
50
Expenses
Paid
During
Period*
$
0.
72
$
0.71
*
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
184/365
(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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
Moderate
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
97.8%
Alternative
-
2.0%
RIC
Commodity
Strategies
Fund
Class
Y
388,441
2,024
Domestic
Equities
-
14.1%
RIF
U.S.
Small
Cap
Equity
Fund
492,621
7,045
RIF
U.S.
Strategic
Equity
Fund
440,654
7,064
14,109
Fixed
Income
-
51.6%
RIC
Investment
Grade
Bond
Fund
Class
Y
547,346
11,910
RIC
Unconstrained
Total
Return
Fund
Class
Y
1,811,739
17,972
RIF
Strategic
Bond
Fund
2,071,881
21,880
51,762
International
Equities
-
18.1%
RIC
Emerging
Markets
Fund
Class
Y
260,854
5,105
RIC
Global
Equity
Fund
Class
Y
754,559
7,055
RIF
International
Developed
Markets
Fund
514,356
6,028
18,188
Multi-Asset
-
12.0%
RIC
Multi-Strategy
Income
Fund
Class
Y
1,192,108
12,028
Total
Investments
in
Affiliated
Funds
(cost
$92,816)
98,111
Short-Term
Investments
-
0.5%
U.S.
Cash
Management
Fund
(@)
531,017
(∞)
531
Total
Short-Term
Investments
(cost
$531)
531
Total
Investments
98.3%
(identified
cost
$93,347)
98,642
Other
Assets
and
Liabilities,
Net
-
1.7%
1,703
Net
Assets
-
100.0%
100,345
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
11
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
5
EUR
605
01/20
(4)
CAC40
Euro
Index
Futures
27
EUR
1,612
01/20
10
DAX
Index
Futures
4
EUR
1,325
03/20
(8)
Dow
Jones
U.S.
Real
Estate
Index
Futures
65
USD
2,389
03/20
57
EURO
STOXX
50
Index
Futures
26
EUR
970
03/20
(10)
FTSE
100
Index
Futures
4
GBP
300
03/20
1
FTSE/MIB
Index
Futures
3
EUR
351
03/20
(1)
Hang
Seng
Index
Futures
2
HKD
2,827
01/20
3
IBEX
35
Index
Futures
5
EUR
476
01/20
(3)
MSCI
EAFE
Index
Futures
15
USD
1,527
03/20
(4)
MSCI
Emerging
Markets
Index
Futures
18
USD
1,008
03/20
19
OMXS30
Index
Futures
19
SEK
3,360
01/20
(2)
S&P
500
E-Mini
Index
Futures
19
USD
3,070
03/20
55
S&P/TSX
60
Index
Futures
4
CAD
810
03/20
2
SPI
200
Index
Futures
8
AUD
1,321
03/20
(28)
TOPIX
Index
Futures
6
JPY
103,
260
03/20
1
Short
Positions
NASDAQ
100
E-Mini
Index
Futures
21
USD
3,676
03/20
(129)
Russell
1000
E-Mini
Index
Futures
5
USD
446
03/20
(8)
Russell
2000
E-Mini
Index
Futures
54
USD
4,
511
03/20
(62)
S&P
400
E-Mini
Index
Futures
3
USD
619
03/20
(12)
S&P
500
E-Mini
Index
Futures
42
USD
6,
785
03/20
(120)
S&P
Financial
Select
Sector
Index
Futures
25
USD
2,369
03/20
(52)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(295)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
Montreal
USD
216
AUD
315
03/18/20
5
Bank
of
Montreal
USD
373
CAD
494
03/18/20
6
Bank
of
Montreal
USD
343
EUR
307
03/18/20
3
Bank
of
Montreal
USD
197
HKD
1,542
03/18/20
1
Bank
of
Montreal
USD
366
JPY
39,503
03/18/20
(1)
Bank
of
Montreal
USD
30
MXN
575
03/18/20
1
Bank
of
Montreal
CHF
118
USD
121
03/18/20
(2)
Bank
of
Montreal
GBP
241
USD
318
03/18/20
(1)
Bank
of
Montreal
SEK
432
USD
46
03/18/20
—
Bank
of
Montreal
SGD
26
USD
19
03/18/20
—
Bank
of
Montreal
ZAR
250
USD
17
03/18/20
(1)
Citigroup
USD
981
CNY
6,920
03/18/20
11
Citigroup
USD
21
RUB
1,340
03/18/20
1
Citigroup
TWD
9,520
USD
315
03/18/20
(5)
Royal
Bank
of
Canada
USD
216
AUD
315
03/18/20
5
Royal
Bank
of
Canada
USD
374
CAD
494
03/18/20
6
Royal
Bank
of
Canada
USD
343
EUR
307
03/18/20
3
Royal
Bank
of
Canada
USD
197
HKD
1,542
03/18/20
1
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
Moderate
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Royal
Bank
of
Canada
USD
366
JPY
39,503
03/18/20
(1)
Royal
Bank
of
Canada
USD
30
MXN
575
03/18/20
1
Royal
Bank
of
Canada
CHF
118
USD
121
03/18/20
(2)
Royal
Bank
of
Canada
GBP
241
USD
318
03/18/20
(2)
Royal
Bank
of
Canada
SEK
432
USD
46
03/18/20
—
Royal
Bank
of
Canada
SGD
26
USD
19
03/18/20
—
Royal
Bank
of
Canada
ZAR
250
USD
17
03/18/20
(1)
State
Street
INR
8,140
USD
114
03/18/20
—
State
Street
KRW
349,910
USD
294
03/18/20
(9)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
19
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
Bank
of
America
Sell
USD
5,544
5.000%
(2)
12/20/24
372
171
543
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
8,900
(1.000%)
(2)
12/20/24
(183)
(51)
(234)
Total
Open
Credit
Indices
Contracts
(å)
189
120
309
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
13
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
$
98,111
$
—
$
—
$
—
$
98,111
97.8
Short-Term
Investments
—
—
—
531
531
0.5
Total
Investments
98,111
—
—
531
98,642
98.3
Other
Assets
and
Liabilities,
Net
1.7
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
148
—
—
—
148
0.1
Foreign
Currency
Exchange
Contracts
—
44
—
—
44
—
*
Credit
Default
Swap
Contracts
—
543
—
—
543
0.5
'
Liabilities
Futures
Contracts
(443)
—
—
—
(443)
(0.4)
Foreign
Currency
Exchange
Contracts
—
(25)
—
—
(25)
(—)
*
Credit
Default
Swap
Contracts
—
(234)
—
—
(234)
(0.2)
Total
Other
Financial
Instruments
**
$
(295)
$
328
$
—
$
—
$
33
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
14
Moderate
Strategy
Fund
Russell
Investment
Funds
Moderate
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
44
Variation
margin
on
futures
contracts*
148
—
—
Credit
default
swap
contracts,
at
fair
value
—
543
—
Total
$
148
$
543
$
44
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
443
$
—
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
25
Credit
default
swap
contracts,
at
fair
value
—
234
—
Total
$
443
$
234
$
25
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**
$
(308)
$
—
$
—
$
—
Futures
contracts
1,042
—
—
(230)
Options
written
42
—
—
—
Total
return
swap
contracts
(
1,751
)
—
—
—
Credit
default
swap
contracts
—
23
—
—
Foreign
currency
exchange
contracts
—
—
(3)
—
Total
$
(
9
75)
$
23
$
(3)
$
(230)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments***
$
250
$
—
$
—
$
—
Futures
contracts
(87)
—
—
64
Options
written
23
—
—
—
Credit
default
swap
contracts
—
184
—
—
Foreign
currency
exchange
contracts****
—
—
47
—
Total
$
186
$
184
$
47
$
64
*
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.
***
Only
includes
net
realized
gain
(loss)
on
forward
and
spot
contracts.
May
differ
from
the
net
realized
gain
(loss)
on
foreign
currency-related
transactions
reported
within
the
Statement
of
Operations.
****
Includes
net
change
in
unrealized
appreciation/depreciation
on
purchased
options
as
reported
in
the
Statement
of
Operations.
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
15
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
$
44
$
—
$
44
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
543
—
543
Total
Financial
and
Derivative
Assets
587
—
587
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(543)
—
(543)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
44
$
—
$
44
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
$
17
$
5
$
—
$
12
Citigroup
11
5
—
6
Royal
Bank
of
Canada
16
5
—
11
Total
$
44
$
15
$
—
$
29
Russell
Investment
Funds
Moderate
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
16
Moderate
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
234
—
234
Total
Financial
and
Derivative
Liabilities
259
—
259
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(234)
—
(234)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
25
$
—
$
25
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
$
5
$
5
$
—
$
—
Citigroup
5
5
—
—
Royal
Bank
of
Canada
5
5
—
—
State
Street
10
—
—
10
Total
$
25
$
15
$
—
$
10
^ 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.
Moderate
Strategy
Fund
17
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
93,347
Investments,
at
fair
value(>)
...........................................................................................................................................................
98,642
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
44
Receivables:
Dividends
and
interest
.......................................................................................................................................................
1
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Fund
shares
sold
................................................................................................................................................................
3
From
affiliates
....................................................................................................................................................................
5
From
broker(a)
...................................................................................................................................................................
1,833
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
543
Total
assets
.................................................................................................................................................
101,
072
Liabilities
Payables:
Due
to
custodian
................................................................................................................................................................
6
Due
to
broker
(
b
)
................................................................................................................................................................
104
Investments
purchased
......................................................................................................................................................
2
Fund
shares
redeemed
.......................................................................................................................................................
1
Accrued
fees
to
affiliates
....................................................................................................................................................
4
Other
accrued
expenses
.....................................................................................................................................................
57
Variation
margin
on
futures
contracts
.................................................................................................................................
294
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
25
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
234
Total
liabilities
.............................................................................................................................................
727
Net
Assets
............................................................................................................................................................
$
100,345
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
18
Moderate
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2019
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
5,289
Shares
of
beneficial
interest
...........................................................................................................................................................
100
Additional
paid-in
capital
..............................................................................................................................................................
94,956
Net
Assets
............................................................................................................................................................
$
100,345
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.05
Net
assets
...............................................................................................................................................................................
$
100,345,498
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
9,984,121
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
1
89
(>)
Investments
in
affiliated
funds
$
98,642
(a)
Receivable
from
Broker
for
Futures
$
1,83
3
(b)
Due
to
Broker
for
Swaps
$
104
(#)
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.
Moderate
Strategy
Fund
19
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.........................................................................................................................
$
3,160
Interest
..............................................................................................................................................................................
3
Total
investment
income
...............................................................................................................................................................
3
,163
Expenses
Advisory
fees
....................................................................................................................................................................
203
Administrative
fees
...........................................................................................................................................................
43
Custodian
fees
...................................................................................................................................................................
52
Transfer
agent
fees
...........................................................................................................................................................
4
Professional
fees
...............................................................................................................................................................
43
Trustees’
fees
....................................................................................................................................................................
4
Printing
fees
......................................................................................................................................................................
26
Miscellaneous
...................................................................................................................................................................
9
Expenses
before
reductions
..............................................................................................................................................
384
Expense
reductions
...........................................................................................................................................................
(242)
Net
expenses
.................................................................................................................................................................................
142
Net
investment
income
(loss)
........................................................................................................................................................
3,021
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
92
Investments
in
affiliated
funds
..........................................................................................................................................
154
Futures
contracts
..............................................................................................................................................................
812
Options
written
.................................................................................................................................................................
42
Foreign
currency
exchange
contracts
................................................................................................................................
(3)
Total
return
swap
contracts
...............................................................................................................................................
(1,751)
Credit
default
swap
contracts
............................................................................................................................................
23
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
1,093
Net
realized
gain
(loss)
..................................................................................................................................................................
462
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
250
Investments
in
affiliated
funds
..........................................................................................................................................
8,037
Futures
contracts
..............................................................................................................................................................
(23)
Options
written
.................................................................................................................................................................
23
Foreign
currency
exchange
contracts
................................................................................................................................
47
Credit
default
swap
contracts
............................................................................................................................................
184
Foreign
currency-related
transactions
...............................................................................................................................
7
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
8,525
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
8,987
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
12,008
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
20
Moderate
Strategy
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
3,021
$
3,519
Net
realized
gain
(loss)
......................................................................................................................
462
2,715
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
8,525
(11,509)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
12,008
(5,275)
Distributions
To
shareholders
.................................................................................................................................
(3,680)
(5,778)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(3,680)
(5,778)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(9,08
6
)
(2,750)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(75
8
)
(13,803)
Net
Assets
Beginning
of
period
.................................................................................................................................
101,103
114,906
End
of
period
..........................................................................................................................................
$
100,34
5
$
101,103
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
401
$
3,86
3
872
$
8,698
Proceeds
from
reinvestment
of
distributions
384
3,680
601
5,778
Payments
for
shares
redeemed
(1,717)
(16,629)
(1,727)
(17,226)
Total
increase
(decrease)
(932)
$
(9,
086)
(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.
22
Moderate
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(d)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2019
9.26
.29
.85
1.14
(.12)
(.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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
23
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(e)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(c)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(c)(d)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(d)
%
Portfolio
Turnover
Rate
(.35)
10.05
12.54
100,345
.38
.14
2.98
26
(.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
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
24
Moderate
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018,
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Advisory
fees
$
1
Administration
fees
3,601
Transfer
agent
fees
373
Trustee
fees
442
$
4,417
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
$
408
$
1,366
$
(357
)
$
496
$
2,024
$
64
$
2
RIC
Global
Infrastructure
Fund
1,651
91
2,052
234
76
—
37
—
RIF
Global
Real
Estate
Securities
Fund
1,291
88
1,595
155
61
—
16
—
RIC
Sustainable
Equity
Fund
57
3
72
7
5
—
—
—
RIC
U.S.
Dynamic
Equity
Fund
214
20
285
(32
)
83
—
1
—
RIF
U.S.
Small
Cap
Equity
Fund
7,096
954
2,437
(311
)
1,743
7,045
40
105
RIF
U.S.
Strategic
Equity
Fund
1,521
5,798
579
(66
)
390
7,064
50
299
RIC
Investment
Grade
Bond
Fund
12,122
924
1,779
7
636
11,910
416
—
RIC
Opportunistic
Credit
Fund
6,280
397
7,006
421
(92
)
—
225
—
RIC
Unconstrained
Total
Return
Fund
8,119
10,572
814
(2
)
97
17,972
467
—
RIF
Strategic
Bond
Fund
21,902
1,922
3,007
2
1,061
21,880
796
86
RIC
Emerging
Markets
Fund
6,268
962
3,074
207
742
5,105
130
4
RIC
Global
Equity
Fund
6,848
1,348
1,932
(86
)
877
7,055
312
575
RIF
International
Developed
Markets
Fund
5,736
727
1,364
(2
)
931
6,028
150
—
RIC
Multi-Strategy
Income
Fund
14,318
924
4,122
(23
)
931
12,028
453
22
U.S.
Cash
Management
Fund
—
6,040
5,509
—
—
531
3
—
$
96,266
$
31,178
$
36,993
$
154
$
8,037
$
98,642
$
3,160
$
1,093
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
94,471,654
$
4,899,930
$
(451,424)
$
4,448,506
$
1,192,617
$
(87,673)
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
1,227,506
$
2,452,600
$
—
$
4,830,202
$
947,736
$
—
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
25
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
differences
between
book
and
tax
accounting.
Book-tax
differences
may
be
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends
and
differences
in
treatment
of
income
from
swaps.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Federal
Income
Taxes,
continued
Russell
Investment
Funds
Balanced
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
26
Balanced
Strategy
Fund
Balanced
Strategy
Fund
Total
Return
1
Year
16
.45%
5
Years
5
.31%§
10
Years
6
.72%§
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index**
Total
Return
1
Year
8
.72%
5
Years
3
.05%§
10
Years
3
.75%§
Russell
1000
®
Index***
Total
Return
1
Year
31
.43%
5
Years
11
.48%§
10
Years
13
.54%§
MSCI
World
ex
USA
Index
(Net)****
Total
Return
1
Year
22
.49%
5
Years
5
.42%§
10
Years
5
.32%§
Russell
Investment
Funds
Balanced
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
Balanced
Strategy
Fund
27
The
Balanced
Strategy
Fund
(the
“Fund”)
is
a
fund
of
funds
that
invests
principally
in
other
Russell
Investment
Funds
(“RIF”)
and
Russell
Investment
Company
(“RIC”)
mutual
funds
(the
“Underlying
Funds”).
The
Underlying
Funds
employ
a
multi-
manager
approach
whereby
portions
of
the
Underlying
Funds
are
allocated
to
different
money
manager
strategies.
Underlying
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
and
Underlying
Funds’
advisor.
RIM,
as
the
Underlying
Funds’
advisor,
may
change
the
allocation
of
the
Underlying
Funds’
assets
among
money
managers
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
in
an
Underlying
Fund
at
any
time,
subject
to
approval
by
the
Underlying
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
an
Underlying
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
above
average
long
term
capital
appreciation
and
a
moderate
level
of
current
income.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
16.45%.
This
is
compared
to
the
Fund’s
primary
benchmark,
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
which
gained
8.72%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Allocation
–
50%
to
70%
Equity
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
19.04%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
The
Fund
seeks
to
achieve
its
objective
by
investing
in
Underlying
Funds
that
provide
exposure
to
a
range
of
diversified
investments,
and
most
major
asset
classes
invested
in
by
the
Underlying
Funds
produced
positive
absolute
returns
during
the
period.
Within
the
Fund’s
fixed
income
portfolio,
exposure
to
securitized
assets
was
beneficial,
as
a
strong
U.S.
consumer
and
the
low-
rate
environment
created
opportunities
within
prepayment
risk
assets.
The
low-rate
environment
was
also
beneficial
to
global
infrastructure
and
global
real
estate
investment
trusts
(“REITs”),
as
both
asset
classes
posted
strong
returns
over
the
period.
The
U.S.
equity
market,
as
broadly
measured
by
the
Russell
3000
®
Index,
surged
to
31.02%
at
period-end,
closing
out
a
strong
year.
From
a
style
perspective,
growth
outperformed
value.
From
a
sector
perspective,
information
technology
was
the
best
performing
sector,
while
health
care,
materials,
communication
services
and
financials
followed
closely
behind.
The
Fund’s
strategic
exposure
to
non-U.S.
equities
benefited
performance
over
the
period,
as
market
sentiment
in
emerging
markets
improved
due
to
apparent
progress
in
the
U.S.-China
trade
talks
and
a
“phase
one”
deal.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
the
Underlying
Funds
affect
the
Fund’s
performance?
The
Fund
is
a
fund
of
funds
and
its
performance
is
based
on
RIM’s
strategic
asset
allocations,
the
performance
of
the
Underlying
Funds
in
which
the
Fund
invests,
and
tactical
changes
in
the
Fund’s
asset
allocation
throughout
the
year.
In
order
to
seek
to
achieve
the
Fund’s
objective
during
the
period,
RIM’s
strategic
asset
allocation
included
investments
in
global
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds.
Broadly,
the
Fund’s
asset
allocation
was
a
positive
contributor
to
performance
relative
to
the
Fund’s
fixed
income
benchmark
during
the
period.
Allocations
to
global
real
estate
investment
trusts
and
infrastructure
benefited
the
Fund,
as
both
asset
classes
posted
strong
double-digit
returns.
Further,
allocations
to
non-
U.S.
equities
bolstered
returns
as
well,
outperforming
the
fixed
income
asset
class.
The
fixed
income
portion
of
the
Fund’s
portfolio
provided
positive
results
compared
to
the
Fund’s
fixed
income
benchmark.
An
allocation
to
the
RIF
Strategic
Bond
Fund
was
positive
from
a
benchmark-relative
perspective
as
a
result
of
its
exposure
to
securitized
credit,
which
generated
an
above
market
yield.
An
allocation
to
the
RIC
Investment
Grade
Bond
Fund
also
contributed
positively
as
a
result
of
the
Underlying
Fund’s
underweight
to
government
and
government-guaranteed
securities
and
an
overweight
to
securitized
credit.
An
allocation
to
the
RIC
Opportunistic
Credit
Fund
was
additive
due
to
its
higher
allocation
to
high
yield
relative
to
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
and
its
emerging
markets
currency
exposure
provided
a
significant
boost
to
active
returns.
While
the
broader
equity
markets
delivered
strong
absolute
performance
over
the
period,
the
Fund’s
equity
allocation
exceeded
the
Fund’s
fixed
income
benchmark.
However,
the
equity
Underlying
Funds
generally
underperformed
their
respective
equity
benchmarks.
The
RIC
Sustainable
Equity
Fund
underperformed
its
benchmark,
as
it
was
consistently
underweight
stocks
that
have
higher
momentum
and
expensive
valuations
and
overweight
stocks
with
higher
profitability.
Both
factor
tilts
negatively
impacted
benchmark-relative
performance
over
the
year.
The
RIF
International
Developed
Markets
Fund
Russell
Investment
Funds
Balanced
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
28
Balanced
Strategy
Fund
underperformed
its
benchmark
due
to
its
sector
allocations
–
for
instance,
an
underweight
to
health
care
and
overweight
to
communication
services
detracted.
A
tilt
toward
low
valuation
stocks
was
a
meaningful
driver
of
underperformance
for
the
RIC
U.S.
Dynamic
Equity
Fund.
Coupled
with
negative
stock
selection
within
the
information
technology
sector,
the
Underlying
Fund
underperformed
its
equity
benchmark.
The
alternative
assets
portion
of
the
Fund’s
portfolio
provided
positive
results
compared
to
the
Fund’s
fixed
income
benchmark.
The
RIF
Global
Real
Estate
Securities
Fund
outperformed
the
Fund’s
benchmark
due
to
the
overall
strength
of
the
asset
class
relative
to
fixed
income,
as
real
assets
were
bolstered
by
a
low
interest
rate
environment.
The
RIC
Global
Infrastructure
Fund
outperformed
both
the
Fund’s
fixed
income
benchmark
and
its
listed
infrastructure
benchmark
due
to
out-of-index
exposures
to
construction
and
engineering
and
specialized
REITs.
The
RIC
Commodity
Strategies
Fund
outperformed
its
benchmark
but
struggled
against
the
Fund’s
fixed
income
benchmark.
The
multi-asset
portion
of
the
Fund’s
portfolio
outperformed
the
Fund’s
fixed
income
benchmark.
The
RIC
Multi-Strategy
Income
Fund
benefited
from
overweight
positions
to
mortgage
back
securities
that
added
value
due
to
the
low
interest
rate
environment.
However,
the
Fund’s
regional
positioning
was
challenged
over
the
period,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
a
U.S.
equity
underweight.
Describe
any
changes
to
the
Fund’s
structure
or
allocation
to
the
Underlying
Funds.
RIM
has
the
discretion
to
vary
the
Fund’s
actual
allocation
from
the
target
strategic
asset
allocation
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
seek
to
actively
manage
a
Fund’s
overall
exposures
by
investing
in
derivatives
that
RIM
believes
will
achieve
the
desired
risk/return
profile
for
the
Fund.
RIM
continued
to
operate
the
Fund
as
a
risk
manager
rather
than
risk
taker
during
the
period.
RIM’s
tactical
regional
modifications
to
the
Fund’s
asset
allocation
versus
strategic
targets
were
challenged
during
the
period,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
U.S.
equity
underweight
while
U.S.
equity
led
global
market
performance.
In
terms
of
tactical
asset
class
modifications,
in
the
first
quarter
of
2019,
real
estate
exposure
was
added
given
attractive
valuations.
At
the
beginning
of
2019,
RIM
also
increased
exposure
to
high
yield
corporate
credit,
but
pared
back
as
spreads
compressed
to
expensive
levels.
Effective
on
November
13,
2019,
the
Fund’s
allocation
to
the
Underlying
Funds
in
which
it
invests
was
modified
to
an
approximate
target
allocation
of
53%
to
equity,
33%
to
fixed
income,
10%
to
multi-asset
and
4%
to
alternative
asset
classes.
RIM
manages
a
global
real
yield
positioning
strategy
and
a
currency
factor
positioning
strategy
for
the
Fund.
Using
futures,
the
global
high
real
yield
strategy
took
long
positions
in
high
quality
government
bonds
whose
net-of-inflation
yields
are
expected
to
be
relatively
high
and
short
positions
where
net-of-
inflation
yield
is
expected
to
be
relatively
low.
The
currency
factor
strategy
utilized
currency
forward
contracts
to
take
long
and
short
positions
in
global
foreign
exchange
markets.
The
global
real
yield
strategy
detracted
over
the
period
as
the
long
positions
underperformed,
with
the
cost
split
evenly
between
the
U.S.
and
Canada.
With
respect
to
the
currency
factor
strategy,
the
Fund’s
exposure
moderately
detracted.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
RIF
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Russell
Investment
Funds
Balanced
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
Balanced
Strategy
Fund
29
*
Assumes
initial
investment
on
January
1,
2010.
**
The
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
is
an
index,
with
income
reinvested,
generally
representative
of
intermediate-term
government
bonds,
investment
grade
corporate
debt
securities
and
mortgage-backed
securities.
***
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
****
The
MSCI
World
ex
USA
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
22
developed
market
country
indexes.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Balanced
Strategy
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
30
Balanced
Strategy
Fund
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
July
1,
2019
to
December
31,
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
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,055.50
$
1,024
.
50
Expenses
Paid
During
Period*
$
0
.
73
$
0
.
71
*
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
184/365
(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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
31
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
97.7%
Alternative
-
4.0%
RIC
Commodity
Strategies
Fund
Class
Y
1,016,471
5,296
RIF
Global
Real
Estate
Securities
Fund
339,383
5,226
10,522
Domestic
Equities
-
18.0%
RIF
U.S.
Small
Cap
Equity
Fund
1,106,965
15,830
RIF
U.S.
Strategic
Equity
Fund
1,982,797
31,784
47,614
Fixed
Income
-
32.6%
RIC
Unconstrained
Total
Return
Fund
Class
Y
3,420,578
33,932
RIF
Strategic
Bond
Fund
4,918,090
51,935
85,867
International
Equities
-
33.1%
RIC
Emerging
Markets
Fund
Class
Y
817,373
15,996
RIC
Global
Equity
Fund
Class
Y
4,244,290
39,685
RIF
International
Developed
Markets
Fund
2,700,491
31,650
87,331
Multi-Asset
-
10.0%
RIC
Multi-Strategy
Income
Fund
Class
Y
2,608,640
26,321
Total
Investments
in
Affiliated
Funds
(cost
$235,857)
257,655
Short-Term
Investments
-
1.0%
U.S.
Cash
Management
Fund(@)
2,721,393
(∞)
2,722
Total
Short-Term
Investments
(cost
$2,722)
2,722
Total
Investments
98.7%
(identified
cost
$238,579)
260,377
Other
Assets
and
Liabilities,
Net
-
1.3%
3,296
Net
Assets
-
100.0%
263,673
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
32
Balanced
Strategy
Fund
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
18
EUR
2,177
01/20
(14)
CAC40
Euro
Index
Futures
97
EUR
5,791
01/20
35
DAX
Index
Futures
14
EUR
4,636
03/20
(29)
Dow
Jones
U.S.
Real
Estate
Index
Futures
162
USD
5,954
03/20
143
EURO
STOXX
50
Index
Futures
88
EUR
3,282
03/20
(33)
FTSE
100
Index
Futures
18
GBP
1,350
03/20
3
FTSE/MIB
Index
Futures
11
EUR
1,288
03/20
(3)
IBEX
35
Index
Futures
16
EUR
1,525
01/20
(10)
MSCI
EAFE
Index
Futures
9
USD
916
03/20
(2)
MSCI
Emerging
Markets
Index
Futures
84
USD
4,705
03/20
90
OMXS30
Index
Futures
68
SEK
12,023
01/20
(6)
S&P/TSX
60
Index
Futures
2
CAD
405
03/20
1
SPI
200
Index
Futures
9
AUD
1,486
03/20
(31)
TOPIX
Index
Futures
25
JPY
430,249
03/20
4
Short
Positions
Hang
Seng
Index
Futures
1
HKD
1,414
01/20
(2)
MSCI
Singapore
Index
Futures
1
SGD
37
01/20
—
NASDAQ
100
E-Mini
Index
Futures
85
USD
14,878
03/20
(520)
Russell
1000
E-Mini
Index
Futures
7
USD
625
03/20
(12)
S&P
400
E-Mini
Index
Futures
4
USD
826
03/20
(16)
S&P
500
E-Mini
Index
Futures
63
USD
10,179
03/20
(180)
S&P
Financial
Select
Sector
Index
Futures
48
USD
4,549
03/20
(99)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(681)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
TRY
1,760
USD
296
03/18/20
6
Bank
of
Montreal
USD
502
CAD
663
03/18/20
9
Bank
of
Montreal
USD
229
CHF
224
03/18/20
4
Bank
of
Montreal
USD
870
JPY
94,023
03/18/20
(2)
Bank
of
Montreal
USD
28
MXN
553
03/18/20
—
Bank
of
Montreal
USD
202
NOK
1,850
03/18/20
9
Bank
of
Montreal
AUD
909
USD
624
03/18/20
(15)
Bank
of
Montreal
EUR
1,381
USD
1,542
03/18/20
(15)
Bank
of
Montreal
GBP
910
USD
1,203
03/18/20
(4)
Bank
of
Montreal
HKD
1,498
USD
192
03/18/20
(1)
Bank
of
Montreal
SEK
618
USD
66
03/18/20
—
Bank
of
Montreal
SGD
306
USD
225
03/18/20
(2)
Bank
of
Montreal
ZAR
70
USD
5
03/18/20
—
Citigroup
USD
503
CAD
663
03/18/20
8
Citigroup
USD
229
CHF
224
03/18/20
4
Citigroup
USD
2,188
CNY
15,430
03/18/20
24
Citigroup
USD
871
JPY
94,023
03/18/20
(2)
Citigroup
USD
29
MXN
553
03/18/20
—
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
33
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
USD
202
NOK
1,850
03/18/20
9
Citigroup
USD
29
RUB
1,880
03/18/20
1
Citigroup
AUD
909
USD
626
03/18/20
(14)
Citigroup
BRL
5,310
USD
1,277
03/18/20
(40)
Citigroup
EUR
1,381
USD
1,542
03/18/20
(15)
Citigroup
GBP
910
USD
1,203
03/18/20
(5)
Citigroup
HKD
1,498
USD
192
03/18/20
(1)
Citigroup
SEK
618
USD
66
03/18/20
—
Citigroup
SGD
306
USD
225
03/18/20
(2)
Citigroup
TWD
28,550
USD
945
03/18/20
(15)
Citigroup
ZAR
70
USD
5
03/18/20
—
Royal
Bank
of
Canada
USD
502
CAD
663
03/18/20
9
Royal
Bank
of
Canada
USD
229
CHF
224
03/18/20
4
Royal
Bank
of
Canada
USD
871
JPY
94,023
03/18/20
(2)
Royal
Bank
of
Canada
USD
28
MXN
553
03/18/20
—
Royal
Bank
of
Canada
USD
202
NOK
1,850
03/18/20
8
Royal
Bank
of
Canada
AUD
909
USD
624
03/18/20
(15)
Royal
Bank
of
Canada
EUR
1,381
USD
1,542
03/18/20
(14)
Royal
Bank
of
Canada
GBP
910
USD
1,203
03/18/20
(5)
Royal
Bank
of
Canada
HKD
1,498
USD
192
03/18/20
(1)
Royal
Bank
of
Canada
SEK
618
USD
66
03/18/20
—
Royal
Bank
of
Canada
SGD
306
USD
225
03/18/20
(2)
Royal
Bank
of
Canada
ZAR
70
USD
5
03/18/20
—
State
Street
INR
49,110
USD
686
03/18/20
2
State
Street
KRW
1,695,470
USD
1,426
03/18/20
(44)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(119)
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
Bank
of
America
Sell
USD
1,980
5.000%
(2)
12/20/24
133
61
194
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
16,800
(1.000%)
(2)
12/20/24
(343)
(98)
(441)
Total
Open
Credit
Indices
Contracts
(å)
(210)
(37)
(247)
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
Balanced
Strategy
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
Investments
in
Affiliated
Funds
$
257,655
$
—
$
—
$
—
$
257,655
97.
7
Short-Term
Investments
—
—
—
2,722
2,722
1.0
Total
Investments
257,655
—
—
2,722
260,377
98.
7
Other
Assets
and
Liabilities,
Net
1.3
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
276
—
—
—
276
0.1
Foreign
Currency
Exchange
Contracts
—
9
7
—
—
9
7
—
*
Credit
Default
Swap
Contracts
—
194
—
—
194
0.1
'
Liabilities
Futures
Contracts
(957)
—
—
—
(957)
(0.4)
Foreign
Currency
Exchange
Contracts
—
(21
6
)
—
—
(216
)
(0.1
)
Credit
Default
Swap
Contracts
—
(441)
—
—
(441)
(0.2)
Total
Other
Financial
Instruments
**
$
(681)
$
(366)
$
—
$
—
$
(1,047)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Balanced
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
35
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
97
Variation
margin
on
futures
contracts*
276
—
—
Credit
default
swap
contracts,
at
fair
value
—
194
—
Total
$
276
$
194
$
97
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
957
$
—
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
216
Credit
default
swap
contracts,
at
fair
value
—
441
—
Total
$
957
$
441
$
216
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**
$
(933)
$
—
$
—
$
—
Futures
contracts
5,027
—
—
(400)
Options
written
107
—
—
—
Total
return
swap
contracts
(4,12
6
)
—
—
—
Credit
default
swap
contracts
—
(156
)
—
—
Foreign
currency
exchange
contracts
—
—
611
—
Total
$
7
5
$
(15
6
)
$
611
$
(400)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments***
$
633
$
—
$
—
$
—
Futures
contracts
281
—
—
72
Options
written
59
—
—
—
Total
return
swap
contracts
551
—
—
—
Credit
default
swap
contracts
—
143
—
—
Foreign
currency
exchange
contracts
—
—
(141)
—
Total
$
1,5
24
$
143
$
(141)
$
72
*
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
Statement
of
Operations.
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
36
Balanced
Strategy
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
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
97
$
—
$
97
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
194
—
194
Total
Financial
and
Derivative
Assets
291
—
291
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(194)
—
(194)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
97
$
—
$
97
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
$
5
$
—
$
—
$
5
Bank
of
Montreal
22
—
—
22
Citigroup
45
—
—
45
Royal
Bank
of
Canada
22
—
—
22
State
Street
3
—
—
3
Total
$
97
$
—
$
—
$
97
Russell
Investment
Funds
Balanced
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
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
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
216
$
—
$
216
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
441
—
441
Total
Financial
and
Derivative
Liabilities
657
—
657
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(441)
—
(441)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
216
$
—
$
216
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
$
40
$
—
$
—
$
40
Citigroup
93
—
—
93
Royal
Bank
of
Canada
39
—
—
39
State
Street
44
—
—
4
4
Total
$
216
$
—
$
—
$
216
^ 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.
38
Balanced
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
238,579
Investments,
at
fair
value(>)
...........................................................................................................................................................
260,377
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
97
Receivables:
Dividends
and
interest
.......................................................................................................................................................
8
Dividends
from
affiliated
funds
..........................................................................................................................................
5
Investments
sold
................................................................................................................................................................
20
From
broker(a)(b)
...............................................................................................................................................................
4
,
414
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
194
Total
assets
.................................................................................................................................................
265
,
115
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
20
Accrued
fees
to
affiliates
....................................................................................................................................................
15
Other
accrued
expenses
.....................................................................................................................................................
71
Variation
margin
on
futures
contracts
.................................................................................................................................
679
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
216
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
441
Total
liabilities
.............................................................................................................................................
1
,
442
Net
Assets
............................................................................................................................................................
$
263,673
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
39
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2019
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
22,674
Shares
of
beneficial
interest
...........................................................................................................................................................
270
Additional
paid-in
capital
..............................................................................................................................................................
240,729
Net
Assets
............................................................................................................................................................
$
263,673
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.78
Net
assets
...............................................................................................................................................................................
$
263,673,300
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
26,970,857
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(210)
(>)
Investments
in
affiliated
funds
$
260,377
(a)
Receivable
from
Broker
for
Futures
$
4,041
(b)
Receivable
from
Broker
for
Swaps
$
373
(#)
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.
40
Balanced
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
7,900
Expenses
Advisory
fees
....................................................................................................................................................................
521
Administrative
fees
...........................................................................................................................................................
111
Custodian
fees
...................................................................................................................................................................
55
Transfer
agent
fees
............................................................................................................................................................
11
Professional
fees
...............................................................................................................................................................
55
Trustees’
fees
....................................................................................................................................................................
11
Printing
fees
......................................................................................................................................................................
51
Miscellaneous
...................................................................................................................................................................
10
Expenses
before
reductions
..............................................................................................................................................
825
Expense
reductions
...........................................................................................................................................................
(461)
Net
expenses
.................................................................................................................................................................................
364
Net
investment
income
(loss)
........................................................................................................................................................
7,536
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(933)
Investments
in
affiliated
funds
..........................................................................................................................................
(297)
Futures
contracts
..............................................................................................................................................................
4,627
Options
written
.................................................................................................................................................................
107
Foreign
currency
exchange
contracts
................................................................................................................................
611
Total
return
swap
contracts
...............................................................................................................................................
(4,126)
Credit
default
swap
contracts
............................................................................................................................................
(156)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
5,060
Net
realized
gain
(loss)
..................................................................................................................................................................
4,893
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
633
Investments
in
affiliated
funds
..........................................................................................................................................
25,194
Futures
contracts
..............................................................................................................................................................
353
Options
written
.................................................................................................................................................................
59
Foreign
currency
exchange
contracts
................................................................................................................................
(141)
Total
return
swap
contracts
...............................................................................................................................................
551
Credit
default
swap
contracts
............................................................................................................................................
143
Foreign
currency-related
transactions
...............................................................................................................................
44
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
26,836
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
31,729
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
39,265
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
41
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
7,536
$
9,202
Net
realized
gain
(loss)
......................................................................................................................
4,893
10,079
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
26,836
(37,870)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
39,265
(18,589)
Distributions
To
shareholders
.................................................................................................................................
(8,971)
(23,207)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(8,971)
(23,207)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(19,950)
(134)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
10,344
(41,930)
Net
Assets
Beginning
of
period
.................................................................................................................................
253,329
295,259
End
of
period
..........................................................................................................................................
$
263,673
$
253,329
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
855
$
7,917
728
$
7,156
Proceeds
from
reinvestment
of
distributions
962
8,971
2,507
23,207
Payments
for
shares
redeemed
(3,973)
(36,838)
(3,134)
(30,497)
Total
increase
(decrease)
(2,156)
$
(19,950)
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.
42
Balanced
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(d)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2019
8.70
.27
1.13
1.40
(.15)
(.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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
43
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(e)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(c)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(c)(d)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(d)
%
Portfolio
Turnover
Rate
(.32)
9.78
16.32
263,673
.32
.14
2.89
32
(.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
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
44
Balanced
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018,
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Advisory
fees
$
3,115
Administration
fees
9,472
Transfer
agent
fees
981
Trustee
fees
1,090
$
14,658
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
$
1,029
$
3,874
$
(2,036
)
$
2,404
$
5,296
$
166
$
5
RIC
Global
Infrastructure
Fund
4,712
234
5,827
584
297
—
106
—
RIF
Global
Real
Estate
Securities
Fund
4,005
1,499
878
4
596
5,226
246
—
RIC
Sustainable
Equity
Fund
4,594
219
5,796
3,376
(2,393
)
—
28
—
RIC
U.S.
Dynamic
Equity
Fund
1,646
136
2,181
(295
)
694
—
8
—
RIF
U.S.
Small
Cap
Equity
Fund
12,168
2,502
1,413
(156
)
2,729
15,830
83
236
RIF
U.S.
Strategic
Equity
Fund
3,310
28,924
1,176
61
665
31,784
197
1,311
RIC
Opportunistic
Credit
Fund
9,978
952
11,444
155
359
—
355
—
RIC
Unconstrained
Total
Return
Fund
17,752
17,762
1,811
(10
)
239
33,932
934
—
RIF
Strategic
Bond
Fund
59,148
6,485
16,580
204
2,678
51,935
2,010
204
RIC
Emerging
Markets
Fund
19,350
3,001
9,310
305
2,650
15,996
413
13
RIC
Global
Equity
Fund
43,074
7,308
16,233
(1,636
)
7,172
39,685
1,759
3,244
RIF
International
Developed
Markets
Fund
29,977
2,791
6,100
(781
)
5,763
31,650
791
—
RIC
Multi-Strategy
Income
Fund
20,102
6,949
1,998
(73
)
1,341
26,321
790
47
U.S.
Cash
Management
Fund
10
14,395
11,684
1
—
2,722
14
—
$
237,599
$
94,186
$
96,305
$
(297
)
$
25,194
$
260,377
$
7,900
$
5,060
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
240,901,100
$
20,200,530
$
(
1,018,251
)
$
19,182,279
$
1,475,611
$
3,571,549
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
4,016,825
$
4,954,324
$
—
$
15,120,983
$
8,085,679
$
—
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
45
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
differences
between
book
and
tax
accounting.
Book-tax
differences
may
be
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends
and
differences
in
treatment
of
income
from
swaps.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Federal
Income
Taxes,
continued
Russell
Investment
Funds
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
46
Growth
Strategy
Fund
Growth
Strategy
Fund
Total
Return
1
Year
18
.06%
5
Years
5
.90%§
10
Years
7
.27%§
Russell
1000
®
Index**
Total
Return
1
Year
31
.43%
5
Years
11
.48%§
10
Years
13
.54%§
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index***
Total
Return
1
Year
8
.72%
5
Years
3
.05%§
10
Years
3
.75%§
MSCI
World
ex
USA
Index
(Net)****
Total
Return
1
Year
22
.49%
5
Years
5
.42%§
10
Years
5
.32%§
Russell
Investment
Funds
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
Growth
Strategy
Fund
47
The
Growth
Strategy
Fund
(the
“Fund”)
is
a
fund
of
funds
that
invests
principally
in
other
Russell
Investment
Funds
(“RIF”)
and
Russell
Investment
Company
(“RIC”)
mutual
funds
(the
“Underlying
Funds”).
The
Underlying
Funds
employ
a
multi-
manager
approach
whereby
portions
of
the
Underlying
Funds
are
allocated
to
different
money
manager
strategies.
Underlying
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
and
Underlying
Funds’
advisor.
RIM,
as
the
Underlying
Funds’
advisor,
may
change
the
allocation
of
the
Underlying
Funds’
assets
among
money
managers
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
in
an
Underlying
Fund
at
any
time,
subject
to
approval
by
the
Underlying
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
an
Underlying
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
high
long
term
capital
appreciation,
and
as
a
secondary
objective,
current
income.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
18.06%.
This
is
compared
to
the
Fund’s
primary
benchmark,
the
Russell
1000
®
Index,
which
gained
31.43%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Allocation
–
70%
to
85%
Equity
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
21.50%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
The
Fund
seeks
to
achieve
its
objective
by
investing
in
Underlying
Funds
that
provide
exposure
to
a
range
of
diversified
investments,
and
most
major
asset
classes
invested
in
by
the
Underlying
Funds
produced
positive
absolute
returns
during
the
period.
Within
the
Fund’s
fixed
income
portfolio,
exposure
to
securitized
assets
was
beneficial,
as
a
strong
U.S.
consumer
and
the
low-
rate
environment
created
opportunities
within
prepayment
risk
assets.
The
low-rate
environment
was
also
beneficial
to
global
infrastructure
and
global
real
estate
investment
trusts
(“REITs”),
as
both
asset
classes
posted
strong
returns
over
the
period.
The
U.S.
equity
market,
as
broadly
measured
by
the
Russell
3000
®
Index,
surged
to
31.02%
at
period-end,
closing
out
a
strong
year.
From
a
style
perspective,
growth
outperformed
value.
From
a
sector
perspective,
information
technology
was
the
best
performing
sector,
while
health
care,
materials,
communication
services
and
financials
followed
closely
behind.
The
Fund’s
strategic
exposure
to
non-U.S.
equities
benefited
performance
over
the
period
as
market
sentiment
in
emerging
markets
improved
due
to
apparent
progress
in
the
U.S.-China
trade
talks
and
a
“phase
one”
deal.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
the
Underlying
Funds
affect
the
Fund’s
performance?
The
Fund
is
a
fund
of
funds
and
its
performance
is
based
on
RIM’s
strategic
asset
allocations,
the
performance
of
the
Underlying
Funds
in
which
the
Fund
invests,
and
tactical
changes
in
the
Fund’s
asset
allocation
throughout
the
year.
In
order
to
seek
to
achieve
the
Fund’s
objective
during
the
period,
RIM’s
strategic
asset
allocation
included
investments
in
global
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds.
The
Fund’s
asset
allocation
was
a
detractor
to
performance
relative
to
the
Fund’s
equity
benchmark
during
the
period.
Allocations
to
global
real
estate
investment
trusts
and
infrastructure
were
costly,
as
were
exposures
to
high
yield
credit
and
treasuries.
Commodities
delivered
positive
absolute
performance,
yet
the
Fund’s
allocation
to
this
asset
class
detracted
as
equities
outperformed
broadly
across
asset
classes.
The
fixed
income
portion
of
the
Fund’s
portfolio
underperformed
the
Fund’s
equity
benchmark.
Allocations
to
the
RIF
Strategic
Bond
Fund
and
RIC
Opportunistic
Credit
Fund
detracted
as
fixed
income
underperformed
the
broader
equity
markets.
While
the
broader
equity
markets
delivered
strong
absolute
performance
over
the
period,
the
Fund’s
equity
allocation
underperformed
the
Fund’s
equity
benchmark.
In
addition,
the
equity
Underlying
Funds
generally
underperformed
their
respective
equity
benchmarks.
The
RIC
Sustainable
Equity
Fund
underperformed
its
benchmark,
as
it
was
consistently
underweight
stocks
with
higher
momentum
and
expensive
and
overweight
stocks
with
higher
profitability.
Both
factor
tilts
negatively
impacted
benchmark-relative
performance
over
the
year.
The
RIF
International
Developed
Markets
Fund
underperformed
its
benchmark
due
to
sector
allocations
–
for
instance,
an
underweight
to
health
care
and
overweight
to
communication
services
detracted.
A
tilt
toward
low
valuation
stocks
was
also
a
meaningful
driver
of
underperformance
for
the
RIC
U.S.
Dynamic
Equity
Fund.
Coupled
with
negative
stock
selection
within
the
information
technology
sector,
the
Fund
underperformed
its
equity
benchmark.
The
alternative
assets
portion
of
the
Fund’s
portfolio
provided
negative
results
compared
to
the
Fund’s
equity
benchmark.
The
Russell
Investment
Funds
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
48
Growth
Strategy
Fund
RIF
Global
Real
Estate
Securities
Fund
underperformed
the
Fund’s
benchmark
due
to
the
relative
strength
of
equities
over
real
estate
investment
trusts.
The
RIC
Global
Infrastructure
Fund
underperformed
the
Fund’s
equity
benchmark
but
outperformed
its
listed
infrastructure
benchmark
due
to
out-of-index
exposures
to
construction
and
engineering
and
specialized
REITs.
The
RIC
Commodity
Strategies
Fund
struggled
against
the
Fund’s
benchmark
but
fared
better
against
its
assigned
benchmark.
The
multi-asset
portion
of
the
Fund’s
portfolio
underperformed
the
Fund’s
equity
benchmark.
The
RIC
Multi-Asset
Growth
Strategy
Fund
struggled
to
beat
the
equity
returns
with
more
diversified
allocation
to
equity
and
fixed
asset
classes.
Describe
any
changes
to
the
Fund’s
structure
or
allocation
to
the
Underlying
Funds.
RIM
has
the
discretion
to
vary
the
Fund’s
actual
allocation
from
the
target
strategic
asset
allocation
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
seek
to
actively
manage
a
Fund’s
overall
exposures
by
investing
in
derivatives
that
RIM
believes
will
achieve
the
desired
risk/return
profile
for
the
Fund.
RIM
continued
to
operate
the
Fund
as
a
risk
manager
rather
than
risk
taker
during
the
period.
RIM’s
tactical
regional
modifications
to
the
Fund’s
asset
allocation
versus
strategic
targets
were
challenged
during
the
period,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
U.S.
equity
underweight
while
U.S.
equity
led
global
market
performance.
In
terms
of
tactical
asset
class
modifications,
in
the
first
quarter
of
2019,
real
estate
exposure
was
added
given
attractive
valuations.
At
the
beginning
of
2019,
RIM
also
increased
exposure
to
high
yield
corporate
credit,
but
pared
back
as
spreads
compressed
to
expensive
levels.
Effective
on
November
13,
2019,
the
Fund’s
allocation
to
the
Underlying
Funds
in
which
it
invests
was
modified
to
an
approximate
target
allocation
of
70%
to
equity,
16%
to
fixed
income,
10%
to
multi-asset
and
4%
to
alternative
asset
classes.
RIM
manages
a
global
real
yield
positioning
strategy
and
a
currency
factor
positioning
strategy
for
the
Fund.
Using
futures,
the
global
high
real
yield
strategy
took
long
positions
in
high
quality
government
bonds
whose
net-of-inflation
yields
are
expected
to
be
relatively
high
and
short
positions
where
net-of-
inflation
yield
is
expected
to
be
relatively
low.
The
currency
factor
strategy
utilized
currency
forward
contracts
to
take
long
and
short
positions
in
global
foreign
exchange
markets.
The
global
real
yield
strategy
detracted
over
the
period
as
the
long
positions
underperformed,
with
the
cost
split
evenly
between
the
U.S.
and
Canada.
With
respect
to
the
currency
factor
strategy,
the
Fund’s
exposure
moderately
detracted.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
RIF
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
*
Assumes
initial
investment
on
January
1,
2010.
**
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
***
The
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
is
an
index,
with
income
reinvested,
generally
representative
of
intermediate-term
government
bonds,
investment
grade
corporate
debt
securities
and
mortgage-backed
securities.
****
The
MSCI
World
ex
USA
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
22
developed
market
country
indexes.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Growth
Strategy
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
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
July
1,
2019
to
December
31,
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
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,060.30
$
1,024.
45
Expenses
Paid
During
Period*
$
0.78
$
0.77
*
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
184/365
(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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
Growth
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
97.6%
Alternative
-
4.0%
RIC
Commodity
Strategies
Fund
Class
Y
791,400
4,123
RIF
Global
Real
Estate
Securities
Fund
263,644
4,060
8,183
Domestic
Equities
-
31.0%
RIF
U.S.
Small
Cap
Equity
Fund
1,289,321
18,437
RIF
U.S.
Strategic
Equity
Fund
2,828,119
45,335
63,772
Fixed
Income
-
15.7%
RIC
Unconstrained
Total
Return
Fund
Class
Y
2,031,935
20,157
RIF
Strategic
Bond
Fund
1,138,752
12,025
32,182
International
Equities
-
37.0%
RIC
Emerging
Markets
Fund
Class
Y
742,543
14,532
RIC
Global
Equity
Fund
Class
Y
3,297,891
30,836
RIF
International
Developed
Markets
Fund
2,622,683
30,738
76,106
Multi-Asset
-
9.9%
RIC
Multi-Asset
Growth
Strategy
Fund
Class
Y
1,970,929
20,320
Total
Investments
in
Affiliated
Funds
(cost
$181,634)
200,563
Short-Term
Investments
-
0.8%
U.S.
Cash
Management
Fund(@)
1,620,687
(∞)
1,621
Total
Short-Term
Investments
(cost
$1,621)
1,621
Total
Investments
98.4%
(identified
cost
$183,255)
202,184
Other
Assets
and
Liabilities,
Net
-
1.6%
3,225
Net
Assets
-
100.0%
205,409
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
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
14
EUR
1,693
01/20
(11)
CAC40
Euro
Index
Futures
80
EUR
4,776
01/20
29
DAX
Index
Futures
11
EUR
3,643
03/20
(23)
Dow
Jones
U.S.
Real
Estate
Index
Futures
60
USD
2,205
03/20
53
EURO
STOXX
50
Index
Futures
73
EUR
2,722
03/20
(27)
FTSE
100
Index
Futures
20
GBP
1,500
03/20
4
FTSE/MIB
Index
Futures
9
EUR
1,053
03/20
(2)
IBEX
35
Index
Futures
14
EUR
1,334
01/20
(9)
MSCI
EAFE
Index
Futures
24
USD
2,444
03/20
(7)
MSCI
Emerging
Markets
Index
Futures
68
USD
3,809
03/20
73
OMXS30
Index
Futures
56
SEK
9,902
01/20
(5)
S&P/TSX
60
Index
Futures
14
CAD
2,835
03/20
8
SPI
200
Index
Futures
14
AUD
2,311
03/20
(48)
TOPIX
Index
Futures
26
JPY
447,460
03/20
4
United
States
2
Year
Treasury
Note
Futures
43
USD
9,267
03/20
(5)
Short
Positions
NASDAQ
100
E-Mini
Index
Futures
59
USD
10,328
03/20
(361)
Russell
1000
E-Mini
Index
Futures
7
USD
625
03/20
(12)
Russell
2000
E-Mini
Index
Futures
54
USD
4,511
03/20
(62)
S&P
400
E-Mini
Index
Futures
4
USD
826
03/20
(16)
S&P
500
E-Mini
Index
Futures
77
USD
12,440
03/20
(221)
S&P
Financial
Select
Sector
Index
Futures
12
USD
1,137
03/20
(25)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(663)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
Montreal
USD
505
CAD
668
03/18/20
9
Bank
of
Montreal
USD
774
JPY
83,623
03/18/20
(1)
Bank
of
Montreal
AUD
113
USD
78
03/18/20
(2)
Bank
of
Montreal
CHF
388
USD
396
03/18/20
(6)
Bank
of
Montreal
EUR
2,008
USD
2,242
03/18/20
(22)
Bank
of
Montreal
GBP
1,451
USD
1,918
03/18/20
(7)
Bank
of
Montreal
HKD
893
USD
114
03/18/20
—
Bank
of
Montreal
MXN
760
USD
39
03/18/20
(1)
Bank
of
Montreal
SEK
620
USD
66
03/18/20
—
Bank
of
Montreal
SGD
55
USD
41
03/18/20
—
Bank
of
Montreal
ZAR
133
USD
9
03/18/20
(1)
Citigroup
USD
506
CAD
668
03/18/20
8
Citigroup
USD
2,113
CNY
14,900
03/18/20
22
Citigroup
USD
774
JPY
83,623
03/18/20
(2)
Citigroup
USD
42
RUB
2,680
03/18/20
1
Citigroup
AUD
113
USD
78
03/18/20
(2)
Citigroup
CHF
388
USD
396
03/18/20
(6)
Citigroup
EUR
2,008
USD
2,242
03/18/20
(21)
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
52
Growth
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
GBP
1,451
USD
1,918
03/18/20
(8)
Citigroup
HKD
893
USD
114
03/18/20
—
Citigroup
MXN
760
USD
39
03/18/20
(1)
Citigroup
SEK
620
USD
66
03/18/20
—
Citigroup
SGD
55
USD
41
03/18/20
—
Citigroup
TWD
28,550
USD
945
03/18/20
(15)
Citigroup
ZAR
133
USD
9
03/18/20
—
Royal
Bank
of
Canada
USD
505
CAD
668
03/18/20
9
Royal
Bank
of
Canada
USD
774
JPY
83,623
03/18/20
(2)
Royal
Bank
of
Canada
AUD
113
USD
78
03/18/20
(2)
Royal
Bank
of
Canada
CHF
388
USD
396
03/18/20
(6)
Royal
Bank
of
Canada
EUR
2,008
USD
2,243
03/18/20
(21)
Royal
Bank
of
Canada
GBP
1,451
USD
1,918
03/18/20
(7)
Royal
Bank
of
Canada
HKD
893
USD
114
03/18/20
—
Royal
Bank
of
Canada
MXN
760
USD
39
03/18/20
(1)
Royal
Bank
of
Canada
SEK
620
USD
66
03/18/20
—
Royal
Bank
of
Canada
SGD
55
USD
41
03/18/20
—
Royal
Bank
of
Canada
ZAR
133
USD
9
03/18/20
(1)
State
Street
KRW
233,270
USD
196
03/18/20
(6)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(92)
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
Bank
of
America
Purchase
USD
9,900
(5.000%)
(2)
12/20/24
(664)
(306)
(970)
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
5,300
(1.000%)
(2)
12/20/24
(108)
(31)
(139)
Total
Open
Credit
Indices
Contracts
(å)
(772)
(337)
(1,109)
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
$
200,563
$
—
$
—
$
—
$
200,563
97.6
Short-Term
Investments
—
—
—
1,621
1,621
0.8
Total
Investments
200,563
—
—
1,621
202,184
98.4
Other
Assets
and
Liabilities,
Net
1.6
100.0
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
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
Other
Financial
Instruments
Assets
Futures
Contracts
171
—
—
—
171
0.1
Foreign
Currency
Exchange
Contracts
—
49
—
—
49
—
*
'
Liabilities
Futures
Contracts
(834)
—
—
—
(834)
(0.
4
)
Foreign
Currency
Exchange
Contracts
—
(14
1
)
—
—
(14
1
)
(
0.1
)
Credit
Default
Swap
Contracts
—
(1,109)
—
—
(1,109)
(0.5)
Total
Other
Financial
Instruments
**
$
(663)
$
(1,201)
$
—
$
—
$
(1,864)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
54
Growth
Strategy
Fund
Russell
Investment
Funds
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
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
$
—
$
—
$
49
$
—
Variation
margin
on
futures
contracts*
171
—
—
—
Total
$
171
$
—
$
49
$
—
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
829
$
—
$
—
$
5
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
141
—
Credit
default
swap
contracts,
at
fair
value
—
1,109
—
—
Total
$
829
$
1,109
$
141
$
5
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**
$
(704)
$
—
$
—
$
—
Futures
contracts
1,027
—
—
801
Options
written
81
—
—
—
Total
return
swap
contracts
(1,767)
—
—
—
Credit
default
swap
contracts
—
(255)
—
—
Foreign
currency
exchange
contracts
—
—
406
—
Total
$
(1,363)
$
(255)
$
406
$
801
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments***
$
479
$
—
$
—
$
—
Futures
contracts
(
691
)
—
—
(
420
)
Options
written
45
—
—
—
Credit
default
swap
contracts
—
(629)
—
—
Foreign
currency
exchange
contracts
—
—
(16)
—
Total
$
(
167
)
$
(629)
$
(16)
$
(
420
)
*
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
Statement
of
Operations.
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
55
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
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
49
$
—
$
49
Total
Financial
and
Derivative
Assets
49
—
49
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
49
$
—
$
49
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
$
9
$
9
$
—
$
—
Citigroup
31
31
—
—
Royal
Bank
of
Canada
9
9
—
—
Total
$
49
$
49
$
—
$
—
Russell
Investment
Funds
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
56
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
$
141
$
—
$
141
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
1,109
—
1,109
Total
Financial
and
Derivative
Liabilities
1,250
—
1,250
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(1,109)
—
(1,109)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
141
$
—
$
141
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
$
39
$
9
$
—
$
30
Citigroup
56
31
—
25
Royal
Bank
of
Canada
40
9
—
31
State
Street
6
—
—
6
Total
$
141
$
49
$
—
$
92
^ 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
57
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
183,255
Investments,
at
fair
value(>)
...........................................................................................................................................................
202,184
Cash
...............................................................................................................................................................................................
2
2
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
49
Receivables:
Dividends
and
interest
.......................................................................................................................................................
1
Dividends
from
affiliated
funds
..........................................................................................................................................
3
Investments
sold
................................................................................................................................................................
3
Fund
shares
sold
................................................................................................................................................................
1
From
broker(a)(b)
...............................................................................................................................................................
5
,
136
Total
assets
.................................................................................................................................................
20
7,
399
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
3
Accrued
fees
to
affiliates
....................................................................................................................................................
10
Other
accrued
expenses
.....................................................................................................................................................
66
Variation
margin
on
futures
contracts
.................................................................................................................................
661
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
141
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
1,109
Total
liabilities
.............................................................................................................................................
1,
990
Net
Assets
............................................................................................................................................................
$
205,409
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
58
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2019
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
20,59
9
Shares
of
beneficial
interest
...........................................................................................................................................................
211
Additional
paid-in
capital
..............................................................................................................................................................
184,
599
Net
Assets
............................................................................................................................................................
$
205,409
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.72
Net
assets
...............................................................................................................................................................................
$
205,409,104
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
21,122,235
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(772)
(>)
Investments
in
affiliated
funds
$
202,184
(a)
Receivable
from
Broker
for
Futures
$
3,684
(b)
Receivable
from
Broker
for
Swaps
$
1
,
452
(#)
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
59
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.........................................................................................................................
$
5,245
Interest
..............................................................................................................................................................................
25
Total
investment
income
...............................................................................................................................................................
5,270
Expenses
Advisory
fees
....................................................................................................................................................................
401
Administrative
fees
...........................................................................................................................................................
85
Custodian
fees
...................................................................................................................................................................
52
Transfer
agent
fees
............................................................................................................................................................
9
Professional
fees
...............................................................................................................................................................
51
Trustees’
fees
....................................................................................................................................................................
8
Printing
fees
......................................................................................................................................................................
43
Miscellaneous
...................................................................................................................................................................
9
Expenses
before
reductions
..............................................................................................................................................
658
Expense
reductions
...........................................................................................................................................................
(358)
Net
expenses
.................................................................................................................................................................................
300
Net
investment
income
(loss)
........................................................................................................................................................
4,970
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(704)
Investments
in
affiliated
funds
..........................................................................................................................................
465
Futures
contracts
..............................................................................................................................................................
1,828
Options
written
.................................................................................................................................................................
81
Foreign
currency
exchange
contracts
................................................................................................................................
406
Total
return
swap
contracts
...............................................................................................................................................
(1,767)
Credit
default
swap
contracts
............................................................................................................................................
(255)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
4,83
8
Net
realized
gain
(loss)
..................................................................................................................................................................
4,89
2
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
479
Investments
in
affiliated
funds
..........................................................................................................................................
24,55
9
Futures
contracts
..............................................................................................................................................................
(1,111)
Options
written
.................................................................................................................................................................
45
Foreign
currency
exchange
contracts
................................................................................................................................
(16)
Credit
default
swap
contracts
............................................................................................................................................
(6
29
)
Foreign
currency-related
transactions
...............................................................................................................................
33
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
23,3
60
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
28,25
2
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
33,22
2
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
60
Growth
Strategy
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
4,970
$
7,905
Net
realized
gain
(loss)
......................................................................................................................
4,89
2
12,922
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
23,3
60
(37,685)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
33,22
2
(16,858)
Distributions
To
shareholders
.................................................................................................................................
(12,31
1
)
(18,776)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(12,31
1
)
(18,776)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(5,54
4
)
4,841
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
15,367
(30,793)
Net
Assets
Beginning
of
period
.................................................................................................................................
190,042
220,835
End
of
period
..........................................................................................................................................
$
205,409
$
190,042
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
453
$
4,14
5
592
$
6,014
Proceeds
from
reinvestment
of
distributions
1,362
12,311
1,994
18,776
Payments
for
shares
redeemed
(2,393)
(22,000)
(1,991)
(19,949)
Total
increase
(decrease)
(578)
$
(5,54
4
)
595
$
4,841
Russell
Investment
Funds
Growth
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
62
Growth
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(d)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2019
8.76
.23
1.31
1.54
(.07)
(.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)
—(f)
December
31,
2015
10.07
.17
(.48)
(.31)
(.18)
(.64)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
63
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(e)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(c)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(c)(d)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(d)
%
Portfolio
Turnover
Rate
(.58)
9.72
18.06
205,409
.33
.15
2.48
35
(.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
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
64
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
Advisory
fees
$
1,140
Administration
fees
7,350
Transfer
agent
fees
761
Trustee
fees
810
$
10,061
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
$
618
$
2,199
$
(1,893
)
$
2,145
$
4,123
$
129
$
4
RIC
Global
Infrastructure
Fund
3,455
135
4,244
474
180
—
80
—
RIF
Global
Real
Estate
Securities
Fund
4,989
386
2,100
110
675
4,060
217
—
RIC
Sustainable
Equity
Fund
8,815
289
11,017
6,129
(4,216
)
—
56
—
RIC
U.S.
Dynamic
Equity
Fund
6,146
278
7,903
(1,190
)
2,669
—
29
—
RIF
U.S.
Small
Cap
Equity
Fund
19,347
1,660
6,492
(715
)
4,637
18,437
112
274
RIF
U.S.
Strategic
Equity
Fund
15,797
28,782
2,707
(188
)
3,651
45,335
377
1,989
RIC
Opportunistic
Credit
Fund
2,281
146
2,545
(38
)
156
—
83
—
RIC
Unconstrained
Total
Return
Fund
22,086
1,853
4,204
(18
)
440
20,157
794
—
RIF
Strategic
Bond
Fund
9,871
3,051
1,350
27
426
12,025
391
47
RIC
Emerging
Markets
Fund
14,843
2,001
4,673
6
2,355
14,532
373
11
RIC
Global
Equity
Fund
32,301
4,957
10,521
(934
)
5,033
30,836
1,362
2,513
RIF
International
Developed
Markets
Fund
31,817
2,558
8,890
(1,305
)
6,558
30,738
771
—
RIC
Multi-Asset
Growth
Strategy
Fund
—
20,527
57
—
(150
)
20,320
461
—
U.S.
Cash
Management
Fund
19
10,427
8,825
—
—
1,621
10
—
$
177,219
$
77,668
$
77,727
$
465
$
24,559
$
202,184
$
5,245
$
4,838
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
184,877,256
$
18,507,745
$
(
2,343,662
)
$
16,164,083
$
2,538,831
$
3,418,527
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
65
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018,
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
differences
between
book
and
tax
accounting.
Book-tax
differences
may
be
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends
and
differences
in
treatment
of
income
from
swaps.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
1,404,242
$
10,906,819
$
—
$
10,477,718
$
8,298,093
$
—
Federal
Income
Taxes,
continued
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
66
Equity
Growth
Strategy
Fund
Equity
Growth
Strategy
Fund
Total
Return
1
Year
20
.09%
5
Years
6
.37%§
10
Years
7
.74%§
Russell
1000
®
Index**
Total
Return
1
Year
31
.43%
5
Years
11
.48%§
10
Years
13
.54%§
MSCI
World
ex
USA
Index
(Net)***
Total
Return
1
Year
22
.49%
5
Years
5
.42%§
10
Years
5
.32%§
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
Equity
Growth
Strategy
Fund
67
The
Equity
Growth
Strategy
Fund
(the
“Fund”)
is
a
fund
of
funds
that
invests
principally
in
other
Russell
Investment
Funds
(“RIF”)
and
Russell
Investment
Company
(“RIC”)
mutual
funds
(the
“Underlying
Funds”).
The
Underlying
Funds
employ
a
multi-
manager
approach
whereby
portions
of
the
Underlying
Funds
are
allocated
to
different
money
manager
strategies.
Underlying
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
and
Underlying
Funds’
advisor.
RIM,
as
the
Underlying
Funds’
advisor,
may
change
the
allocation
of
the
Underlying
Funds’
assets
among
money
managers
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
in
an
Underlying
Fund
at
any
time,
subject
to
approval
by
the
Underlying
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
an
Underlying
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
high
long
term
capital
appreciation.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
20.09%.
This
is
compared
to
the
Fund’s
primary
benchmark,
the
Russell
1000
®
Index,
which
gained
31.43%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Allocation
–
70%
to
85%
Equity
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
21.50%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
The
Fund
seeks
to
achieve
its
objective
by
investing
in
Underlying
Funds
that
provide
exposure
to
a
range
of
diversified
investments,
and
most
major
asset
classes
invested
in
by
the
Underlying
Funds
produced
positive
absolute
returns
during
the
period.
Within
the
Fund’s
fixed
income
portfolio,
exposure
to
securitized
assets
was
beneficial,
as
a
strong
U.S.
consumer
and
the
low-
rate
environment
created
opportunities
within
prepayment
risk
assets.
The
low-rate
environment
was
also
beneficial
to
global
infrastructure
and
global
real
estate
investment
trusts
(“REITs”),
as
both
asset
classes
posted
strong
returns
over
the
period.
The
U.S.
equity
market,
as
broadly
measured
by
the
Russell
3000
®
Index,
surged
to
31.02%
at
period-end,
closing
out
a
strong
year.
From
a
style
perspective,
growth
outperformed
value.
From
a
sector
perspective,
information
technology
was
the
best
performing
sector,
while
health
care,
materials,
communication
services
and
financials
followed
closely
behind.
The
Fund’s
strategic
exposure
to
non-U.S.
equities
benefited
performance
over
the
period
as
market
sentiment
in
emerging
markets
improved
due
to
apparent
progress
in
the
U.S.-China
trade
talks
and
a
“phase
one”
deal.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
the
Underlying
Funds
affect
the
Fund’s
performance?
The
Fund
is
a
fund
of
funds
and
its
performance
is
based
on
RIM’s
strategic
asset
allocations,
the
performance
of
the
Underlying
Funds
in
which
the
Fund
invests,
and
tactical
changes
in
the
Fund’s
asset
allocation
throughout
the
year.
In
order
to
seek
to
achieve
the
Fund’s
objective
during
the
period,
RIM’s
strategic
asset
allocation
included
investments
in
global
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds.
The
Fund’s
asset
allocation
was
a
detractor
to
performance
relative
to
the
Fund’s
equity
benchmark
during
the
period.
Allocations
to
global
real
estate
investment
trusts
and
infrastructure
were
costly,
as
were
exposures
to
high
yield
credit
and
treasuries.
Commodities
delivered
positive
absolute
performance,
yet
the
Fund’s
allocation
to
this
asset
class
detracted
as
equities
outperformed
broadly
across
asset
classes.
The
fixed
income
portion
of
the
Fund’s
portfolio
underperformed
the
Fund’s
equity
benchmark.
Allocations
to
the
RIC
Unconstrained
Total
Return
Fund
and
RIC
Opportunistic
Credit
Fund
detracted
as
fixed
income
underperformed
the
broader
equity
markets.
While
the
broader
equity
markets
delivered
strong
absolute
performance
over
the
period,
the
Fund’s
equity
allocation
underperformed
the
Fund’s
equity
benchmark.
In
addition,
the
equity
Underlying
Funds
generally
underperformed
their
respective
equity
benchmarks.
The
RIC
Sustainable
Equity
Fund
underperformed
its
benchmark,
as
it
was
consistently
underweight
stocks
with
higher
momentum
and
expensive
and
overweight
stocks
with
higher
profitability.
Both
factor
tilts
negatively
impacted
benchmark-relative
performance
over
the
year.
The
RIF
International
Developed
Markets
Fund
underperformed
its
benchmark
due
to
sector
allocations
–
for
instance,
an
underweight
to
health
care
and
overweight
to
communication
services
detracted.
A
tilt
toward
low
valuation
stocks
was
also
a
meaningful
driver
of
underperformance
for
the
RIC
U.S.
Dynamic
Equity
Fund.
Coupled
with
negative
stock
selection
within
the
information
technology
sector,
the
Fund
underperformed
its
equity
benchmark.
The
alternative
assets
portion
of
the
Fund’s
portfolio
provided
negative
results
compared
to
the
Fund’s
equity
benchmark.
The
RIF
Global
Real
Estate
Securities
Fund
underperformed
the
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
68
Equity
Growth
Strategy
Fund
Fund’s
benchmark
due
to
the
relative
strength
of
equities
over
real
estate
investment
trusts.
The
RIC
Global
Infrastructure
Fund
underperformed
the
Fund’s
equity
benchmark
but
outperformed
its
listed
infrastructure
benchmark
due
to
out-of-index
exposures
to
construction
and
engineering
and
specialized
REITs.
The
RIC
Commodity
Strategies
Fund
struggled
against
the
Fund’s
benchmark
but
fared
better
against
its
assigned
benchmark.
The
multi-asset
portion
of
the
Fund’s
portfolio
underperformed
the
Fund’s
equity
benchmark.
The
RIC
Multi-Asset
Growth
Strategy
Fund
struggled
to
beat
the
equity
returns
with
a
more
diversified
allocation
to
equity
and
fixed
asset
classes.
Describe
any
changes
to
the
Fund’s
structure
or
allocation
to
the
Underlying
Funds.
RIM
has
the
discretion
to
vary
the
Fund’s
actual
allocation
from
the
target
strategic
asset
allocation
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
seek
to
actively
manage
a
Fund’s
overall
exposures
by
investing
in
derivatives
that
RIM
believes
will
achieve
the
desired
risk/return
profile
for
the
Fund.
RIM
continued
to
operate
the
Fund
as
a
risk
manager
rather
than
risk
taker
during
the
period.
RIM’s
tactical
regional
modifications
to
the
Fund’s
asset
allocation
versus
strategic
targets
were
challenged
during
the
period,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
U.S.
equity
underweight
while
U.S.
equity
led
global
market
performance.
In
terms
of
tactical
asset
class
modifications,
in
the
first
quarter
of
2019,
real
estate
exposure
was
added
given
attractive
valuations.
At
the
beginning
of
2019,
RIM
also
increased
exposure
to
high
yield
corporate
credit,
but
pared
back
as
spreads
compressed
to
expensive
levels.
Effective
on
November
13,
2019,
the
Fund’s
allocation
to
the
Underlying
Funds
in
which
it
invests
was
modified
to
an
approximate
target
allocation
of
80%
to
equity,
11%
to
fixed
income,
4%
to
multi-asset
and
5%
to
alternative
asset
classes.
RIM
manages
a
global
real
yield
positioning
strategy
and
a
currency
factor
positioning
strategy
for
the
Fund.
Using
futures,
the
global
high
real
yield
strategy
took
long
positions
in
high
quality
government
bonds
whose
net-of-inflation
yields
are
expected
to
be
relatively
high
and
short
positions
where
net-of-
inflation
yield
is
expected
to
be
relatively
low.
The
currency
factor
strategy
utilized
currency
forward
contracts
to
take
long
and
short
positions
in
global
foreign
exchange
markets.
The
global
real
yield
strategy
detracted
over
the
period
as
the
long
positions
underperformed,
with
the
cost
split
evenly
between
the
U.S.
and
Canada.
With
respect
to
the
currency
factor
strategy,
the
Fund’s
exposure
moderately
detracted.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
RIF
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
*
Assumes
initial
investment
on
January
1,
2010.
**
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
***
The
MSCI
World
ex
USA
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
22
developed
market
country
indexes.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
Equity
Growth
Strategy
Fund
69
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
July
1,
2019
to
December
31,
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
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,066.90
$
1,024.
45
Expenses
Paid
During
Period*
$
0.78
$
0.77
*
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
184/365
(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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
70
Equity
Growth
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
96.6%
Alternative
-
4.9%
RIC
Commodity
Strategies
Fund
Class
Y
187,272
976
RIF
Global
Real
Estate
Securities
Fund
94,123
1,449
2,425
Domestic
Equities
-
33.6%
RIF
U.S.
Small
Cap
Equity
Fund
407,542
5,828
RIF
U.S.
Strategic
Equity
Fund
669,690
10,735
16,563
Fixed
Income
-
10.7%
RIC
Unconstrained
Total
Return
Fund
Class
Y
532,663
5,284
International
Equities
-
43.5%
RIC
Emerging
Markets
Fund
Class
Y
201,599
3,945
RIC
Global
Equity
Fund
Class
Y
1,092,479
10,215
RIF
International
Developed
Markets
Fund
620,583
7,273
21,433
Multi-Asset
-
3.9%
RIC
Multi-Asset
Growth
Strategy
Fund
Class
Y
186,868
1,927
Total
Investments
in
Affiliated
Funds
(cost
$42,411
)
47,632
Short-Term
Investments
-
1.9%
U.S.
Cash
Management
Fund(@)
958,089
(∞)
958
Total
Short-Term
Investments
(cost
$958)
958
Total
Investments
98.5%
(identified
cost
$43,369)
48,590
Other
Assets
and
Liabilities,
Net
-
1.5%
726
Net
Assets
-
100.0%
49,316
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
71
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
484
01/20
(3)
CAC40
Euro
Index
Futures
20
EUR
1,194
01/20
7
DAX
Index
Futures
3
EUR
993
03/20
(6)
Dow
Jones
U.S.
Real
Estate
Index
Futures
66
USD
2,425
03/20
58
Euro
STOXX
50
Index
Futures
18
EUR
671
03/20
(7)
FTSE
100
Index
Futures
7
GBP
525
03/20
1
FTSE/MIB
Index
Futures
2
EUR
234
03/20
(1)
IBEX
35
Index
Futures
3
EUR
286
01/20
(2)
MSCI
EAFE
Index
Futures
12
USD
1,222
03/20
(3)
OMXS30
Index
Futures
13
SEK
2,299
01/20
(1)
Russell
1000
E-Mini
Index
Futures
1
USD
89
03/20
2
SPI
200
Index
Futures
3
AUD
495
03/20
(10)
TOPIX
Index
Futures
4
JPY
68,839
03/20
1
Short
Positions
MSCI
Emerging
Markets
Index
Futures
25
USD
1,400
03/20
(27)
NASDAQ
100
E-Mini
Index
Futures
16
USD
2,800
03/20
(98)
Russell
2000
E-Mini
Index
Futures
23
USD
1,921
03/20
(27)
S&P
500
E-Mini
Index
Futures
8
USD
1,292
03/20
(23)
S&P
Financial
Select
Sector
Index
Futures
12
USD
1,137
03/20
(25)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(164)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
Montreal
USD
304
AUD
443
03/18/20
8
Bank
of
Montreal
USD
172
CAD
227
03/18/20
3
Bank
of
Montreal
USD
351
JPY
37,862
03/18/20
(1)
Bank
of
Montreal
USD
8
ZAR
115
03/18/20
—
Bank
of
Montreal
CHF
223
USD
227
03/18/20
(4)
Bank
of
Montreal
EUR
655
USD
731
03/18/20
(7)
Bank
of
Montreal
GBP
420
USD
555
03/18/20
(2)
Bank
of
Montreal
HKD
360
USD
46
03/18/20
—
Bank
of
Montreal
MXN
2,025
USD
104
03/18/20
(2)
Bank
of
Montreal
SEK
375
USD
40
03/18/20
—
Bank
of
Montreal
SGD
22
USD
16
03/18/20
—
Citigroup
USD
496
CNY
3,500
03/18/20
4
Citigroup
USD
23
RUB
1,490
03/18/20
1
Citigroup
BRL
980
USD
236
03/18/20
(7)
Citigroup
TWD
9,520
USD
315
03/18/20
(4)
Royal
Bank
of
Canada
USD
304
AUD
443
03/18/20
8
Royal
Bank
of
Canada
USD
172
CAD
227
03/18/20
3
Royal
Bank
of
Canada
USD
351
JPY
37,862
03/18/20
(1)
Royal
Bank
of
Canada
USD
8
ZAR
115
03/18/20
—
Royal
Bank
of
Canada
CHF
223
USD
227
03/18/20
(4)
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
72
Equity
Growth
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Royal
Bank
of
Canada
EUR
655
USD
731
03/18/20
(7)
Royal
Bank
of
Canada
GBP
420
USD
555
03/18/20
(2)
Royal
Bank
of
Canada
HKD
360
USD
46
03/18/20
—
Royal
Bank
of
Canada
MXN
2,025
USD
104
03/18/20
(2)
Royal
Bank
of
Canada
SEK
375
USD
40
03/18/20
—
Royal
Bank
of
Canada
SGD
22
USD
16
03/18/20
—
State
Street
INR
12,940
USD
181
03/18/20
1
State
Street
KRW
116,630
USD
98
03/18/20
(3)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(18)
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
Bank
of
America
Purchase
USD
1,287
(5.000%)
(2)
12/20/24
(86)
(40)
(126)
Total
Open
Credit
Indices
Contracts
(å)
(86)
(40)
(126)
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
73
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
$
47,632
$
—
$
—
$
—
$
47,632
96.
6
Short-Term
Investments
—
—
—
958
958
1.9
Total
Investments
47,632
—
—
958
48,590
98.
5
Other
Assets
and
Liabilities,
Net
1.5
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
69
—
—
—
69
0.
1
Foreign
Currency
Exchange
Contracts
—
28
—
—
28
0.1
'
Liabilities
Futures
Contracts
(233)
—
—
—
(233)
(0.5)
Foreign
Currency
Exchange
Contracts
—
(46)
—
—
(46)
(
0.1
)
Credit
Default
Swap
Contracts
—
(126)
—
—
(126)
(0.3)
Total
Other
Financial
Instruments
*
$
(164)
$
(144)
$
—
$
—
$
(308)
*
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
74
Equity
Growth
Strategy
Fund
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
28
Variation
margin
on
futures
contracts*
69
—
—
Total
$
69
$
—
$
28
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
233
$
—
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
46
Credit
default
swap
contracts,
at
fair
value
—
126
—
Total
$
233
$
126
$
46
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**
$
(178)
$
—
$
—
$
—
Futures
contracts
328
—
—
3
Options
written
21
—
—
—
Total
return
swap
contracts
(509)
—
—
—
Credit
default
swap
contracts
—
3
—
—
Foreign
currency
exchange
contracts
—
—
46
—
Total
$
(33
8
)
$
3
$
46
$
3
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments***
$
122
$
—
$
—
$
—
Futures
contracts
22
—
—
(16)
Options
written
11
—
—
—
Total
return
swap
contracts
68
—
—
—
Credit
default
swap
contracts
—
(105)
—
—
Foreign
currency
exchange
contracts
—
—
37
—
Total
$
223
$
(105)
$
37
$
(16)
*
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
Statement
of
Operations.
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
75
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
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
28
$
—
$
28
Total
Financial
and
Derivative
Assets
28
—
28
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
28
$
—
$
28
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
$
10
$
10
$
—
$
—
Citigroup
6
6
—
—
Royal
Bank
of
Canada
11
11
—
—
State
Street
1
1
—
—
Total
$
28
$
28
$
—
$
—
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
76
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
$
46
$
—
$
46
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
126
—
126
Total
Financial
and
Derivative
Liabilities
17
2
—
17
2
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(126)
—
(126)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
4
6
$
—
$
4
6
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
$
1
5
$
10
$
—
$
5
Citigroup
12
6
—
6
Royal
Bank
of
Canada
16
11
—
5
State
Street
3
1
—
2
Total
$
4
6
$
28
$
—
$
1
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
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
77
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
43,3
69
Investments,
at
fair
value(>)
...........................................................................................................................................................
48,590
Cash
...............................................................................................................................................................................................
2
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
28
Receivables:
Dividends
from
affiliated
funds
..........................................................................................................................................
2
Investments
sold
................................................................................................................................................................
1
From
affiliates
....................................................................................................................................................................
7
From
broker(a)(b)
...............................................................................................................................................................
1
,0
76
Total
assets
.................................................................................................................................................
49
,7
0
6
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
1
Accrued
fees
to
affiliates
....................................................................................................................................................
2
Other
accrued
expenses
.....................................................................................................................................................
51
Variation
margin
on
futures
contracts
.................................................................................................................................
164
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
46
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
126
Total
liabilities
.............................................................................................................................................
390
Net
Assets
............................................................................................................................................................
$
49,316
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
78
Equity
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2019
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
5,27
6
Shares
of
beneficial
interest
...........................................................................................................................................................
5
4
Additional
paid-in
capital
..............................................................................................................................................................
43,98
6
Net
Assets
............................................................................................................................................................
$
49,31
6
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.20
Net
assets
...............................................................................................................................................................................
$
49,316,330
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
5,360,417
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(86)
(>)
Investments
in
affiliated
funds
$
48,590
(a)
Receivable
from
Broker
for
Futures
$
910
(b)
Receivable
from
Broker
for
Swaps
$
1
66
(#)
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
79
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
1,212
Expenses
Advisory
fees
....................................................................................................................................................................
97
Administrative
fees
...........................................................................................................................................................
21
Custodian
fees
...................................................................................................................................................................
49
Transfer
agent
fees
...........................................................................................................................................................
2
Professional
fees
...............................................................................................................................................................
40
Trustees’
fees
....................................................................................................................................................................
2
Printing
fees
......................................................................................................................................................................
16
Miscellaneous
...................................................................................................................................................................
7
Expenses
before
reductions
..............................................................................................................................................
234
Expense
reductions
...........................................................................................................................................................
(162)
Net
expenses
.................................................................................................................................................................................
72
Net
investment
income
(loss)
........................................................................................................................................................
1,140
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(17
8
)
Investments
in
affiliated
funds
..........................................................................................................................................
76
4
Futures
contracts
..............................................................................................................................................................
331
Options
written
.................................................................................................................................................................
21
Foreign
currency
exchange
contracts
................................................................................................................................
46
Total
return
swap
contracts
...............................................................................................................................................
(5
09
)
Credit
default
swap
contracts
............................................................................................................................................
3
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
1,377
Net
realized
gain
(loss)
..................................................................................................................................................................
1,85
5
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
12
2
Investments
in
affiliated
funds
..........................................................................................................................................
5,7
65
Futures
contracts
..............................................................................................................................................................
6
Options
written
.................................................................................................................................................................
11
Foreign
currency
exchange
contracts
................................................................................................................................
37
Total
return
swap
contracts
...............................................................................................................................................
68
Credit
default
swap
contracts
............................................................................................................................................
(105)
Foreign
currency-related
transactions
...............................................................................................................................
(1)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
5,903
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
7,75
8
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
8,89
8
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
80
Equity
Growth
Strategy
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
1,140
$
2,043
Net
realized
gain
(loss)
......................................................................................................................
1,855
3,588
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
5,903
(10,675
)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
8,898
(5,044
)
Distributions
To
shareholders
.................................................................................................................................
(3,114
)
(5,072
)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(3,114
)
(5,072
)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(4,098
)
1,800
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
1,686
(8,316
)
Net
Assets
Beginning
of
period
.................................................................................................................................
47,630
55,946
End
of
period
..........................................................................................................................................
$
49,316
$
47,630
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
250
$
2,157
363
$
3,462
Proceeds
from
reinvestment
of
distributions
369
3,114
571
5,072
Payments
for
shares
redeemed
(1,094)
(9,369)
(712)
(6,734)
Total
increase
(decrease)
(475)
$
(4,098)
222
$
1,800
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.
82
Equity
Growth
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(d)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2019
8.16
.20
1.39
1.59
(.02)
(.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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
83
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(e)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(c)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(c)(d)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(d)
%
Portfolio
Turnover
Rate
(.55)
9.20
20.09
49,316
.48
.15
2.36
38
(.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
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
84
Equity
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018,
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Administration
fees
$
1,757
Transfer
agent
fees
182
Trustee
fees
215
$
2,154
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
$
234
$
656
$
(396
)
$
461
$
976
$
30
$
1
RIC
Global
Infrastructure
Fund
979
67
1,229
133
50
—
22
—
RIF
Global
Real
Estate
Securities
Fund
600
926
160
3
80
1,449
61
—
RIC
Sustainable
Equity
Fund
3,269
120
4,074
2,268
(1,583
)
—
20
—
RIC
U.S.
Dynamic
Equity
Fund
2,368
120
3,034
(472
)
1,018
—
10
—
RIF
U.S.
Small
Cap
Equity
Fund
6,338
663
2,435
(278
)
1,540
5,828
35
86
RIF
U.S.
Strategic
Equity
Fund
2,574
8,282
661
99
441
10,735
77
457
RIC
Opportunistic
Credit
Fund
377
44
441
3
17
—
13
—
RIC
Unconstrained
Total
Return
Fund
3,591
2,182
546
(2
)
59
5,284
161
—
RIC
Emerging
Markets
Fund
5,048
687
2,530
151
589
3,945
101
3
RIC
Global
Equity
Fund
9,591
1,613
2,046
(331
)
1,388
10,215
450
830
RIF
International
Developed
Markets
Fund
8,226
670
2,928
(414
)
1,719
7,273
184
—
RIC
Multi-Asset
Growth
Strategy
Fund
—
1,947
6
—
(14
)
1,927
43
—
U.S.
Cash
Management
Fund
20
2,548
1,610
—
—
958
5
—
$
44,314
$
20,103
$
22,356
$
764
$
5,765
$
48,590
$
1,212
$
1,377
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
44,770,363
$
3,890,559
$
(
209,265
)
$
3,681,294
$
766,714
$
1,320,148
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
112,615
$
3,001,276
$
—
$
2,655,457
$
2,416,855
$
—
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
85
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
differences
between
book
and
tax
accounting.
Book-tax
differences
may
be
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends
and
differences
in
treatment
of
income
from
swaps.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Federal
Income
Taxes,
continued
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Schedule
of
Investments
—
December
31,
2019
86
Notes
to
Schedule
of
Investments
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
—
December
31,
2019
Notes
to
Schedule
of
Investments
87
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
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Highlights
—
December
31,
2019
88
Notes
to
Financial
Highlights
(a)
Average
daily
shares
outstanding
were
used
for
this
calculation.
(b)
Recognition
of
net
investment
income
by
the
Fund
is
affected
by
the
timing
of
the
declaration
of
dividends
by
the
Underlying
Funds
in
which
the
Fund
invests.
(c)
The
calculation
includes
only
those
expenses
charged
directly
to
the
Fund
and
does
not
include
expenses
charged
to
the
Underlying
Funds
in
which
the
Fund
invests.
(d)
May
reflect
amounts
waived
and
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(e)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
(f)
Less
than
$.01
per
share.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements
—
December
31,
2019
Notes
to
Financial
Statements
89
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
listed
in
the
table
below
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
by
investing
in
derivatives,
including
futures,
options,
forwards
and
swaps,
that
RIM
believes
will
achieve
the
desired
exposures
for
the
Funds.
The
Funds
may
hold
cash
in
connection
with
these
investments.
The
Funds
usually,
but
not
always,
pursue
a
strategy
of
being
fully
invested
by
exposing
their
cash
to
the
performance
of
segments
of
the
global
equity
market
by
purchasing
index
futures
contracts
(also
known
as
"equitization").
Each
Fund
intends
its
strategy
of
investing
in
combinations
of
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds
to
result
in
investment
diversification
that
an
investor
could
otherwise
achieve
only
by
holding
numerous
individual
investments.
A
Fund’s
actual
allocation
may
vary
from
the
target
strategic
asset
allocation
at
any
point
in
time
(1)
due
to
market
movements,
(2)
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research,
and/
or
(3)
due
to
the
implementation
over
a
period
of
time
of
a
change
to
the
target
strategic
asset
allocation
including
the
addition
of
a
new
Underlying
Fund.
There
may
be
no
changes
in
the
asset
allocation
or
to
the
Underlying
Funds
in
a
given
year
or
such
changes
may
be
made
one
or
more
times
in
a
year.
The
following
table
shows
the
Funds'
approximate
expected
target
strategic
asset
allocation
effective
on
or
about
December
31,
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,
RIC
Emerging
Markets,
RIC
Global
Equity,
and
RIF
International
Developed
Markets
Funds.
The
fixed
income
Underlying
Funds
in
which
the
Funds
may
invest
include
the
RIC
Opportunistic
Credit,
RIC
Investment
Grade
Bond,
RIC
Short
Duration
Bond,
RIC
Unconstrained
Total
Return,
and
RIF
Strategic
Bond
Funds.
The
multi-asset
Underlying
Funds
in
which
the
Funds
may
invest
include
the
RIC
Multi-Strategy
Income
and
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.
*
As
described
above,
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
34%
53%
70%
80%
Fixed
Income
52%
33%
16%
11%
Multi-Asset
12%
10%
10%
4%
Alternative
**
2%
4%
4%
5%
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
90
Notes
to
Financial
Statements
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
has
evaluated
the
impact
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
financial
statements.
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:
Equity
securities,
including
common
and
preferred
stock,
short
securities,
ETFs
and
restricted
securities
that
are
traded
on
a
national
securities
exchange,
are
stated
at
the
last
reported
sales
price
on
the
day
of
valuation
or
official
closing
price,
as
applicable.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
91
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
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.
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
December
31,
2019,
there
was
no
movement
between
the
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
—
December
31,
2019
92
Notes
to
Financial
Statements
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
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.
Each
Fund
files
a
U.S.
tax
return.
At
December
31,
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.
The
Funds
comply
with
the
authoritative
guidance
for
uncertainty
in
income
taxes
which
requires
management
to
determine
whether
a
tax
position
of
the
Funds
is
more
likely
than
not
to
be
sustained
upon
examination,
including
resolution
of
any
related
appeals
or
litigation
processes,
based
on
the
technical
merits
of
the
position.
For
tax
positions
meeting
the
more
likely
than
not
threshold,
the
tax
amount
recognized
in
the
financial
statements
is
reduced
by
the
largest
benefit
that
has
a
greater
than
50%
likelihood
of
being
realized
upon
ultimate
settlement
with
the
relevant
taxing
authority.
Management
determined
that
no
accruals
need
to
be
made
in
the
financial
statements
due
to
uncertain
tax
positions.
Management
continually
reviews
and
adjusts
the
Funds'
liability
for
income
taxes
based
on
analyses
of
tax
laws
and
regulations,
as
well
as
their
interpretations,
and
other
relevant
factors.
Dividends
and
Distributions
to
Shareholders
Income
dividends,
capital
gain
distributions
and
return
of
capital,
if
any,
are
recorded
on
the
ex-dividend
date.
Income
dividends
are
generally
declared
and
paid
quarterly.
Capital
gain
distributions
are
generally
declared
and
paid
annually.
An
additional
distribution
may
be
paid
by
the
Funds
to
avoid
imposition
of
federal
income
and
excise
tax
on
any
remaining
undistributed
capital
gains
and
net
investment
income.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
93
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,
the
Underlying
Funds
sold
at
a
loss,
wash
sale
deferrals
and
capital
loss
carryforwards.
Accordingly,
the
Funds
may
periodically
make
reclassifications
among
certain
of
their
capital
accounts
without
impacting
their
NAVs.
Expenses
Expenses
included
in
the
accompanying
financial
statements
reflect
the
expenses
of
each
Fund
and
do
not
include
those
expenses
incurred
by
the
Underlying
Funds.
Because
the
Underlying
Funds
have
varied
expense
and
fee
levels
and
the
Funds
may
own
different
proportions
of
the
Underlying
Funds
at
different
times,
the
amount
of
the
Underlying
Funds’
fees
and
expenses
incurred
indirectly
by
the
Funds
will
vary.
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
currency
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
Statement
of
Assets
and
Liabilities
as
Receivables
for
Variation
margin
on
future
contracts
and
Payables
for
Variation
margin
on
futures
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
—
December
31,
2019
94
Notes
to
Financial
Statements
The
effects
of
derivative
instruments,
categorized
by
risk
exposure,
on
the
Statement
of
Assets
and
Liabilities
and
the
Statement
of
Operations,
for
the
period
ended
December
31,
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
December
31,
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
September
30,
2019
December
31,
2019
Moderate
Strategy
Fund
$
4,905,073
$
4,872,821
$
4,806,520
$
5,832,581
Balanced
Strategy
Fund
27,267,094
27,208,203
26,424,147
24,086,502
Growth
Strategy
Fund
20,864,821
20,806,082
20,173,112
21,924,976
Equity
Growth
Strategy
Fund
6,992,077
6,998,613
6,823,926
6,490,002
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2019
June
30,
2019
September
30,
2019
December
31,
2019
Moderate
Strategy
Fund
$
4,912,234
$
4,883,162
$
4,790,978
$
5,852,546
Balanced
Strategy
Fund
27,448,081
27,200,421
26,596,040
23,989,245
Growth
Strategy
Fund
21,076,097
20,854,961
20,396,544
21,884,217
Equity
Growth
Strategy
Fund
7,038,708
7,004,671
6,855,798
6,479,295
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
95
a
Fund
has
written
is
exercised,
the
amount
of
the
premium
originally
received
will
reduce
the
cost
of
the
security
which
a
Fund
purchases
upon
exercise
of
the
option.
The
Funds’
use
of
written
options
involves,
to
varying
degrees,
elements
of
market
risk
in
excess
of
the
amount
recognized
in
the
Statements
of
Assets
and
Liabilities.
The
face
or
contract
amounts
of
these
instruments
reflect
the
extent
of
the
Funds’
exposure
to
market
risk.
The
risks
may
be
caused
by
an
imperfect
correlation
between
movements
in
the
price
of
the
instrument
and
the
price
of
the
underlying
securities
and
interest
rates.
The
Funds
may
enter
into
a
swaption
(an
option
on
a
swap).
In
a
swaption,
in
exchange
for
an
option,
the
buyer
gains
the
right
but
not
the
obligation
to
enter
into
a
specified
swap
agreement
with
the
issuer
on
a
specified
future
date.
The
writer
of
the
contract
receives
the
premium
and
bears
the
risk
of
unfavorable
changes
in
the
preset
rate
on
the
underlying
swap.
For
the
period
ended
December
31,
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
December
31,
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
September
30,
2019
December
31,
2019
Moderate
Strategy
Fund
$
2,970,006
$
—
$
—
$
—
Balanced
Strategy
Fund
15,839,969
—
—
—
Growth
Strategy
Fund
11,880,024
—
—
—
Equity
Growth
Strategy
Fund
2,970,006
—
—
—
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
September
30,
2019
December
31,
2019
Moderate
Strategy
Fund
$
29,441,229
$
31,739,708
$
31,772,152
$
36,008,326
Balanced
Strategy
Fund
63,311,201
69,668,624
69,949,203
72,199,263
Growth
Strategy
Fund
72,687,385
89,617,357
89,395,571
75,630,479
Equity
Growth
Strategy
Fund
18,307,057
18,816,467
18,751,014
18,542,790
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
96
Notes
to
Financial
Statements
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
—
December
31,
2019
Notes
to
Financial
Statements
97
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
December
31,
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
—
December
31,
2019
98
Notes
to
Financial
Statements
the
Funds
will
be
able
to
do
so,
the
Funds
may
be
able
to
reduce
or
eliminate
their
exposure
under
a
swap
agreement
either
by
assignment
or
other
disposition,
or
by
entering
into
an
offsetting
swap
agreement
with
the
same
party
or
another
creditworthy
party.
The
Funds
may
have
limited
ability
to
eliminate
their
exposure
under
a
credit
default
swap
if
the
credit
quality
of
the
reference
entity
or
underlying
asset
has
declined.
For
the
period
ended
December
31,
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
December
31,
2019,
the
Funds
did
not
enter
into
any
total
return
swaps.
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,
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
disclosure
begins
with
disaggregation
of
counterparties
by
legal
entity
and
the
roll
up
of
the
data
to
reflect
a
single
counterparty
in
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
September
30,
2019
December
31,
2019
Moderate
Strategy
Fund
$
14,700,000
$
16,700,000
$
16,700,000
$
14,444,000
Balanced
Strategy
Fund
23,100,000
23,100,000
23,100,000
18,780,000
Growth
Strategy
Fund
15,400,000
15,400,000
15,400,000
15,200,000
Equity
Growth
Strategy
Fund
1,400,000
1,400,000
1,400,000
1,287,000
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
99
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.
LIBOR
The
Funds
may
invest
in
certain
instruments
including,
but
not
limited
to,
repurchase
agreements,
collateralized
loan
obligations
and
mortgage-backed
securities,
that
rely
in
some
fashion
upon
LIBOR.
LIBOR
is
an
average
interest
rate,
determined
by
the
ICE
Benchmark
Administration,
that
banks
charge
one
another
for
the
use
of
short-term
money.
The
United
Kingdom’s
Financial
Conduct
Authority,
which
regulates
LIBOR,
has
announced
plans
to
phase
out
the
use
of
LIBOR
by
the
end
of
2021.
There
remains
uncertainty
regarding
the
future
utilization
of
LIBOR
and
the
nature
of
any
replacement
rate
(e.g.,
the
Secured
Overnight
Financing
Rate,
which
is
intended
to
replace
U.S.
dollar
LIBOR
and
measures
the
cost
of
overnight
borrowings
through
repurchase
agreement
transactions
collateralized
with
U.S.
Treasury
securities).
Any
potential
effects
of
the
transition
away
from
LIBOR
on
the
Funds
or
on
certain
instruments
in
which
a
Fund
invests
can
be
difficult
to
ascertain,
and
they
may
vary
depending
on
factors
that
include,
but
are
not
limited
to:
(i)
existing
fallback
or
termination
provisions
in
individual
contracts
and
(ii)
whether,
how,
and
when
industry
participants
develop
and
adopt
new
reference
rates
and
fallbacks
for
both
legacy
and
new
products
and
instruments.
For
example,
certain
of
the
Fund’s
investments
may
involve
individual
contracts
that
have
no
existing
fallback
provision
or
language
that
contemplates
the
discontinuation
of
LIBOR,
and
those
investments
could
experience
increased
volatility
or
illiquidity
as
a
result
of
the
transition
process.
In
addition,
interest
rate
provisions
included
in
such
contracts
may
need
to
be
renegotiated
in
contemplation
of
the
transition
away
from
LIBOR.
The
transition
may
also
result
in
a
reduction
in
the
value
of
certain
instruments
held
by
a
Fund,
including
those
described
in
this
paragraph,
or
a
reduction
in
the
effectiveness
of
related
Fund
transactions
such
as
hedges.
Any
such
effects
of
the
transition
away
from
LIBOR,
as
well
as
other
unforeseen
effects,
could
result
in
losses
to
a
Fund.
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
December
31,
2019,
purchases
and
sales
of
investment
securities
(excluding
short-term
investments,
options
and
futures)
were
as
follows:
Purchases
Sales
Moderate
Strategy
Fund
$
25,137,767
$
31,484,325
Balanced
Strategy
Fund
79,791,050
84,620,529
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
100
Notes
to
Financial
Statements
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.
RIFUS
is
the
Funds'
administrator
and
transfer
agent.
RIFUS,
in
its
capacity
as
the
Funds'
administrator,
provides
or
oversees
the
provision
of
all
administrative
services
for
the
Funds.
RIFUS,
in
its
capacity
as
the
Funds'
transfer
agent
and
dividend
disbursing
agent,
is
responsible
for
providing
transfer
agency
and
dividend
disbursing
services
to
the
Funds.
RIFUS
is
a
wholly-owned
subsidiary
of
RIM.
RIM
is
an
indirect,
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company.
The
Funds
are
permitted
to
invest
their
cash
(i.e.,
cash
awaiting
investment
or
cash
held
to
meet
redemption
requests
or
to
pay
expenses)
in
the
U.S.
Cash
Management
Fund,
an
unregistered
fund
advised
by
RIM.
As
of
December
31,
2019,
the
Funds
had
invested
$5,832,936
in
the
U.S.
Cash
Management
Fund.
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
administration
fee
of
up
to
0.0425%
is
based
on
the
combined
average
daily
net
assets
of
the
Funds.
Advisory
and
administration
fees
are
paid
monthly.
The
following
table
shows
the
total
amount
of
each
of
these
fees
paid
by
the
Funds
for
the
period
ended
December
31,
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
Purchases
Sales
Growth
Strategy
Fund
67,241,026
68,901,657
Equity
Growth
Strategy
Fund
17,555,212
20,746,308
Advisory
Administration
Moderate
Strategy
Fund
$
202,640
$
43,061
Balanced
Strategy
Fund
520,627
110,633
Growth
Strategy
Fund
400,869
85,185
Equity
Growth
Strategy
Fund
96,682
20,545
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
101
expenses
exceed
0.15%
of
the
average
daily
net
assets
of
the
Fund
on
an
annual
basis.
Direct
Fund-level
expenses
do
not
include
extraordinary
expenses
or
the
expenses
of
other
investment
companies
in
which
the
Fund
invests,
including
the
Underlying
Funds,
which
are
borne
indirectly
by
the
Fund.
This
waiver
and
reimbursement
may
not
be
terminated
during
the
relevant
period
except
with
Board
approval.
For
the
period
ended
December
31,
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
fee
for
its
services
provided
to
the
Funds
and
pays
the
balance
to
unaffiliated
agents
who
assist
in
providing
these
services.
Transfer
agency
fees
paid
by
the
Funds
presented
herein
for
the
period
ended
December
31,
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
December
31,
2019,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$1,612,750.
Federal
Income
Taxes
At
December
31,
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:
Waiver
Reimbursement
Total
Moderate
Strategy
Fund
$
202,640
$
39,472
$
242,112
Balanced
Strategy
Fund
460,540
—
460,540
Growth
Strategy
Fund
357,922
—
357,922
Equity
Growth
Strategy
Fund
96,682
65,179
161,861
Amount
Moderate
Strategy
Fund
$
4,323
Balanced
Strategy
Fund
11,106
Growth
Strategy
Fund
8,552
Equity
Growth
Strategy
Fund
2,061
No
Expiration
Funds
Short
Term
Long-Term
Totals
Moderate
Strategy
Fund
$
87,673
$
—
$
87,673
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2019
102
Notes
to
Financial
Statements
Record
Ownership
As
of
December
31,
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
disclosures.
#
of
Shareholders
%
Moderate
Strategy
Fund
1
88.6
Balanced
Strategy
Fund
1
88.9
Growth
Strategy
Fund
2
97.8
Equity
Growth
Strategy
Fund
2
97.1
Report
of
Independent
Registered
Public
Accounting
Firm
Report
of
Independent
Registered
Public
Accounting
Firm
103
To
the
Board
of
Trustees
of
Russell
Investment
Funds
and
Shareholders
of
Moderate
Strategy
Fund,
Balanced
Strategy
Fund,
Growth
Strategy
Fund
and
Equity
Growth
Strategy
Fund
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
Moderate
Strategy
Fund,
Balanced
Strategy
Fund,
Growth
Strategy
Fund
and
Equity
Growth
Strategy
Fund
(four
of
the
funds
constituting
Russell
Investment
Funds,
hereafter
collectively
referred
to
as
the
“Funds”)
as
of
December
31,
2019,
the
related
statements
of
operations
for
the
year
ended
December
31,
2019,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2019,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2019
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
December
31,
2019,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2019
and
each
of
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2019
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(“PCAOB”)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
December
31,
2019
by
correspondence
with
the
transfer
agents
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
February
21,
2020
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Russell
Investments
family
of
funds
since
1981.
PricewaterhouseCoopers
LLP,
1420
Fifth
Avenue,
Suite
2800,
Seattle,
WA
98101
T:
(206)
398
3000,
F:
(206)
398
3100,
www.pwc.com/us
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Tax
Information
—
December
31,
2019
(Unaudited)
104
Tax
Information
For
the
tax
year
ended
December
31,
2019,
the
Funds
designate
100%
or
the
maximum
amount
allowable
of
their
net
taxable
income
as
qualified
dividends
taxed
at
individual
net
capital
gain
rates.
The
Form
1099
you
receive
in
January
2020
will
show
the
tax
status
of
all
distributions
paid
to
your
account
in
calendar
year
2019.
The
Funds
designate
dividends
distributed
during
the
fiscal
year
as
qualifying
for
the
dividends
received
deduction
for
corporate
shareholders
as
follows:
Pursuant
to
Section
852
of
the
Internal
Revenue
Code,
the
Funds
designate
the
following
amounts
as
long-term
capital
gain
dividends
for
their
taxable
year
ended
December
31,
2019:
Moderate
Strategy
$2,452,600
Balanced
Strategy
$4,954,324
Growth
Strategy
$10,906,819
Equity
Growth
Strategy
$3,001,276
Moderate
Strategy
11.6%
Balanced
Strategy
34.5%
Growth
Strategy
31.4%
Equity
Growth
Strategy
39.3%
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Shareholder
Requests
for
Additional
Information
—
December
31,
2019
(Unaudited)
Shareholder
Requests
for
Additional
Information
105
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,
2019
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
—
December
31,
2019
(Unaudited)
106
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.
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
—
December
31,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
107
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
—
December
31,
2019
(Unaudited)
108
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
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
December
31,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
109
*
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)
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
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
—
December
31,
2019
(Unaudited)
110
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
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Adviser
and
Service
Providers
—
December
31,
2019
(Unaudited)
Adviser
and
Service
Providers
111
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
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
2019
ANNUAL
REPORT
Russell
Investment
Funds
DECEMBER
31,
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
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
profes-
sional
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
To
Our
Shareholders
3
U.S.
Strategic
Equity
Fund
5
U.S.
Small
Cap
Equity
Fund
23
International
Developed
Markets
Fund
51
Strategic
Bond
Fund
77
Global
Real
Estate
Securities
Fund
133
Notes
to
Schedules
of
Investments
155
Notes
to
Financial
Highlights
157
Notes
to
Financial
Statements
158
Report
of
Independent
Registered
Public
Accounting
Firm
178
Tax
Information
179
Affiliated
Brokerage
Transactions
180
Basis
for
Approval
of
Investment
Advisory
Contracts
181
Shareholder
Requests
for
Additional
Information
182
Disclosure
of
Information
about
Fund
Trustees
and
Officers
183
Adviser,
Money
Managers
and
Service
Providers
188
Russell
Investment
Funds
Annual
Report
December
31,
2019
Table
of
Contents
Russell
Investment
Funds
Copyright
©
Russell
Investments
2020.
All
rights
reserved.
Russell
Investments’
ownership
is
composed
of
a
majority
stake
held
by
funds
managed
by
TA
Associates
with
minority
stakes
held
by
funds
managed
by
Reverence
Capital
Partners
and
Russell
Investments’
management.
Frank
Russell
Company
is
the
owner
of
the
Russell
trademark
contained
in
this
material
and
all
trademark
rights
related
to
the
Russell
trademarks,
which
the
members
of
the
Russell
Investment
group
of
companies
are
permitted
to
use
under
license
from
Frank
Russell
Company.
The
members
of
the
Russell
Investments
group
of
companies
are
not
affiliated
in
any
manner
with
Frank
Russell
Company
or
any
entity
operation
under
the
“FTSE
RUSSELL”
brand.
Fund
objectives,
risks,
charges
and
expenses
should
be
carefully
considered
before
in-
vesting.
A
prospectus
containing
this
and
other
important
information
must
precede
or
accompany
this
material.
Please
read
the
prospectus
carefully
before
investing.
Securities
distributed
through
Russell
Investments
Financial
Services,
LLC,
member
FINRA
and
part
of
Russell
Investments.
Indices
and
benchmarks
are
unmanaged
and
cannot
be
invested
in
directly.
Returns
represent
past
performance,
are
not
a
guarantee
of
future
performance,
and
are
not
indicative
of
any
specific
investment.
Index
return
information
is
provided
by
vendors
and
although
deemed
reliable,
is
not
guaranteed
by
Russell
Investments
or
its
affiliates.
Performance
quoted
represents
past
performance
and
does
not
guarantee
future
results.
The
investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
To
Our
Shareholders
To
Our
Shareholders
3
Fellow
Investors,
Your
financial
security
is
not
only
our
focus;
it
is
our
purpose.
We
believe
that
the
combination
of
our
investment
solutions,
a
sound
plan
and
timely
investment
advice
can
help
to
achieve
that
financial
security.
That
is
the
reason
we
work
hard
to
maintain
a
time-tested,
disciplined
investment
approach,
focused
on
meeting
the
financial
needs
of
clients
like
you.
Market
volatility
and
the
fear
of
a
recession
can
make
it
difficult
for
individuals
to
stick
to
an
investment
plan.
Some
investors
are
tempted
to
leave
sectors
too
early,
to
stay
in
too
long,
or
to
pull
out
too
much.
These
types
of
behavior
can
cause
the
less-disciplined
investor
to
fall
into
the
harmful
trap
of
buying
high
and
selling
low.
However,
we
believe
this
is
the
type
of
market
in
which
our
process
shines.
We
maintain
our
focus
and
look
to
position
our
funds
for
the
investing
environment
ahead,
not
the
one
that
has
just
passed.
With
this
in
mind,
we
hold
the
following
views
on
markets:
We
believe
in
the
importance
of
diversifying
globally.
International
investments
provide
diversification
relative
to
U.S.-based
investments
as
well
as
open
the
portfolio
up
to
additional
opportunities
outside
our
borders.
Within
our
equity
exposure,
we
have
an
underweight
preference
for
U.S.
equities,
driven
by
expensive
valuations
and
cycle
concerns.
We’re
broadly
neutral
on
developed
international
equities,
and
overweight
on
emerging
markets
equities,
driven
by
valuations.
Within
our
bond
exposure,
we
continue
to
diversify
across
sectors.
Additionally,
active
management
will
be
important
during
a
period
of
low
anticipated
fixed
income
returns.
2019
again
showed
that
volatility
is
still
present
in
the
market.
And
we
believe
uncertainty
about
future
market
downturns
helps
to
prove
the
value
of
a
disciplined
approach.
As
do,
in
our
view,
these
key
events
of
the
last
12
months:
Global
growth
concerns
and
geopolitical
tension
have
remained
in
investors’
thoughts.
Progress
in
U.S.-China
trade
talks
fluctuated
over
the
period,
with
both
countries
implementing
costly
tariffs,
which
has
impacted
financial
markets.
While
short-term
recession
risks
remain
low,
the
U.S.
yield
curve
is
signaling
that
the
risk
is
increasing.
The
U.S.
yield
curve
inverted
for
the
first
time
since
2007
as
government
bond
yields
sunk
to
new
depths.
1
The
U.S.
10-year
treasury
reached
its
lowest
since
2016
2
while
the
U.S.
30-year
yield
touched
an
all-time
bottom
in
August.
3
Nevertheless,
global
equities
have
ground
higher
amid
dovish
central
bank
policy.
The
Federal
Reserve
cut
rates
three
times,
while
the
European
Central
Bank
cut
rates
to
a
record
-0.5%
and
restarted
quantitative
easing.
4
China’s
central
bank
also
took
steps
to
stimulate
its
economy.
5
Volatility
spiked
at
points
over
the
year
6
,
but
equity
markets
have
not
touched
the
volatility
experienced
during
December
2018—where
a
Federal
Reserve
rate
increase
and
a
worsening
of
U.S.-China
tensions
led
investors
flight
to
safety.
7
2019
saw
positive
returns
from
major
asset
classes,
with
U.S.
large
cap
8
and
infrastructure
asset
classes
9
leading
the
way.
Even
with
strong
absolute
performance
it
has
not
been
without
bumps;
asset
class
leadership
can
change
month-to-month
and
quarter-to-quarter,
reinforcing
the
need
for
a
balanced
multi-asset
approach
to
investing.
Looking
forward
to
the
year
ahead,
we
believe
we
are
late
in
the
cycle;
with
some
bright
spots.
The
service
sector
is
still
robust
in
most
economies;
policy
stimulus
is
being
ramped
up,
with
many
central
banks
now
cutting
interest
rates
and
indicating
that
more
cuts
are
on
the
way;
and
an
easing
of
trade
tensions
seems
likely.
On
balance,
we
think
it
is
more
likely
that
the
combination
of
trade-war
resolution
and
policy
stimulus
will
see
the
global
economy
recover
in
2020.
However,
the
asymmetry
of
the
different
outcomes—bear
market
versus
limited
upside—keeps
us
cautious
until
there
is
more
clarity
on
the
trade
and
stimulus
outlook.
To
Our
Shareholders
4
To
Our
Shareholders
At
Russell
Investments,
our
purpose
is
to
improve
people’s
financial
security.
We
have
a
long
heritage
of
providing
multi-
asset
solutions
to
help
investors
like
you
reach
your
financial
goals,
whether
you’re
saving
for
retirement,
already
there
or
building
a
college
fund.
Thank
you
for
the
trust
you
have
placed
in
our
firm.
All
of
us
at
Russell
Investments
appreciate
the
opportunity
to
help
you
achieve
your
own
financial
security.
Best
regards,
Peter
Gunning
Global
Chief
Investment
Officer,
Russell
Investments
1
Source:
https://www.reuters.com/article/us-us-bonds-curve/u-s-treasury-bond-curve-inverts-for-first-time-since-2007-in-recession-warning-
idUSKCN1V4165
2
Source:
https://www.cnbc.com/2019/09/03/us-bonds-wall-street-monitors-economic-data-treasury-auctions.html
3
Source:
https://www.cnbc.com/2019/08/28/us-bonds-key-yield-curve-inverts-further-as-30-year-hits-record-low.html
4
Source:
https://www.marketwatch.com/story/ecb-cuts-key-rate-restarts-qe-as-it-attempts-to-revive-eurozone-economy-2019-09-12
5
Source:
https://www.reuters.com/article/us-china-economy-poll/chinas-2019-growth-seen-slowing-to-62-as-trade-war-weighs-idUSKCN1U514W
6
Source:
https://www.cnbc.com/2019/08/14/stock-markets-wall-street-in-focus-amid-earnings-economic-data.html
7
Source:
https://www.wsj.com/articles/the-battered-bull-market-is-limping-into-2019-11546425000
8
Source:
https://www.cnbc.com/2019/10/28/stock-market-investors-monitor-busiest-week-of-earnings-season.html
9
Source:
https://us.spindices.com/indices/equity/sp-global-infrastructure-index
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
U.S.
Strategic
Equity
Fund
5
U.S.
Strategic
Equity
Fund
Total
Return
1
Year
30
.26%
5
Years
9
.72%§
10
Years
12
.09%§
Russell
1000
®
Index**
Total
Return
1
Year
31
.43%
5
Years
11
.48%§
10
Years
13
.54%§
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
6
U.S.
Strategic
Equity
Fund
The
U.S.
Strategic
Equity
Fund
(the
“Fund”)
employs
a
multi-
manager
approach
whereby
portions
of
the
Fund
are
allocated
to
different
money
manager
strategies.
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
advisor.
RIM
may
change
the
allocation
of
the
Fund’s
assets
among
money
managers
at
any
time,
including
not
allocating
Fund
assets
to
one
or
more
money
manager
strategies.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2019,
the
Fund
had
four
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
long
term
capital
growth.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
30.26%.
This
is
compared
to
the
Fund’s
benchmark,
the
Russell
1000
®
Index,
which
gained
31.43%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Large
Blend
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
29.72%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
RIM
may
assign
a
money
manager
a
specific
style
or
capitalization
benchmark
other
than
the
Fund’s
index.
However,
the
Fund’s
primary
index
remains
the
benchmark
for
the
Fund
and
is
representative
of
the
aggregate
of
each
money
manager’s
benchmark
index.
How
did
market
conditions
affect
the
Fund’s
performance?
The
fiscal
year
ended
December
31,
2019
saw
the
Fund
underperform
the
Russell
1000
®
Index
and
outperform
the
Morningstar
®
Insurance
Large
Blend
peer
group.
With
a
more
dovish
U.S.
Federal
Reserve
in
2019,
the
U.S.
equity
market
produced
strong
positive
returns.
Growth
stocks
performed
better
than
value
stocks
for
the
12-month
period,
but
value
had
bursts
of
outperformance
including
the
sharp
“factor
rotation”
in
September.
Dynamic
stocks
slightly
outperformed
defensive
stocks
over
the
period.
However,
most
of
the
outperformance
came
in
the
fourth
quarter
as
phase
one
of
the
U.S.-China
trade
deal
lifted
investor
sentiment
and
business
surveys
showed
tentative
signs
of
a
bottoming
in
the
global
cycle.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
Over
the
period,
the
Fund
maintained
exposure
to
moderately
priced
securities
with
low
price
momentum
as
well
as
companies
with
lower
financial
leverage.
Additionally,
the
Fund
was
tilted
away
from
the
largest
market
capitalization
stocks
due
to
valuation
concerns.
Overall,
the
Fund’s
factor
tilts
provided
negative
results
as
underweights
to
large
market
capitalization,
high
leverage
and
high
valuation
stocks
detracted
from
relative
performance.
From
a
sector
standpoint,
the
Fund
was
positioned
toward
more
pro-cyclical
areas
of
the
market
which
are
expected
to
benefit
from
a
healthy
domestic
consumer
such
as
the
consumer
discretionary,
financials
and
energy
sectors,
while
avoiding
bond
proxies.
Sector
allocation
decisions
were
moderately
beneficial
over
the
period,
including
underweights
to
the
health
care
and
industrials
sectors.
Stock
selection
by
the
Fund’s
money
managers
was
mixed,
as
positive
selection
within
the
energy
and
financials
sectors
was
offset
by
negative
selection
within
the
information
technology
and
communication
services
sectors.
The
Fund
employs
discretionary
and
non-discretionary
money
managers.
The
Fund’s
discretionary
money
managers
select
the
individual
portfolio
securities
for
the
assets
assigned
to
them.
The
Fund’s
non-discretionary
money
managers
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
certain
of
the
Fund’s
money
managers,
Brandywine
Global
Investment
Management,
LLC
outperformed
the
Russell
1000
®
Value
Index.
Factor
exposures
were
rewarded,
including
the
manager’s
tilt
toward
stocks
with
low
momentum.
Stock
selection
within
the
energy,
financials
and
information
technology
sectors
was
the
primary
driver
of
outperformance
over
the
year.
During
the
period,
RIM
utilized
a
positioning
strategy
to
control
Fund-level
exposures
and
risks
through
the
purchase
of
a
stock
portfolio.
Using
the
output
from
a
quantitative
model,
the
strategy
seeks
to
position
the
portfolio
to
meet
RIM’s
overall
preferred
positioning
with
respect
to
Fund
exposures
along
factor
and
industry
dimensions.
The
Fund’s
active
positioning
strategy
provided
exposure
to
RIM’s
strategic
equity
beliefs
associated
with
value,
quality
and
low
volatility
factors.
During
the
fiscal
year,
the
strategy
underperformed
the
Russell
1000
®
Index
as
the
value
factor
lagged
in
the
U.S.
equity
market.
From
a
sector
perspective,
the
positioning
strategy’s
large
overweight
to
the
health
care
sector
detracted
from
benchmark
relative
performance.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
U.S.
Strategic
Equity
Fund
7
During
the
period,
RIM
partially
equitized
the
Fund’s
cash
using
index
futures
contracts
to
provide
the
Fund
with
greater
market
exposure.
This
had
a
positive
impact
on
the
Fund’s
absolute
performance.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
In
February
2019,
RIM
replaced
Suffolk
Capital
Management,
LLC,
which
ceased
operations
as
of
end
of
January,
with
Jackson
Square
Partners,
LLC.
In
June
2019,
RIM
determined
to
no
longer
allocate
Fund
assets
to
Jacobs
Levy
Equity
Management,
Inc.
and
HS
Management
Partners,
LLC’s
strategies.
Allocations
to
the
other
money
managers
and
the
RIM
positioning
strategy
were
adjusted
as
a
result.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2019
Styles
Brandywine
Global
Investment
Management,
LLC
Value
HS
Management
Partners,
LLC
Growth
Jacobs
Levy
Equity
Management,
Inc.
Market-Oriented
Jackson
Square
Partners,
LLC
Growth
*
Assumes
initial
investment
on
January
1,
2010
.
**
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
8
U.S.
Strategic
Equity
Fund
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
July
1,
2019
to
December
31,
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
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,085.00
$
1,020.92
Expenses
Paid
During
Period*
$
4.47
$
4.33
*
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
184/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
9
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
95.6%
Consumer
Discretionary
-
14.0%
Amazon.com,
Inc.(Æ)
2,402
4,439
Amerco,
Inc.
627
236
Aramark
Services,
Inc.
9,710
421
Bright
Horizons
Family
Solutions,
Inc.(Æ)
2,077
312
Carnival
Corp.
3,338
170
Charter
Communications,
Inc.
Class
A(Æ)
17,625
8,549
Choice
Hotels
International,
Inc.(Ñ)
3,980
412
Cinemark
Holdings,
Inc.
38,439
1,301
Comcast
Corp.
Class
A
34,851
1,567
Costco
Wholesale
Corp.
2,575
757
Darden
Restaurants,
Inc.
2,689
293
Dollar
Tree,
Inc.(Æ)
72,618
6,829
Domino's
Pizza,
Inc.
19,518
5,734
DR
Horton,
Inc.
33,433
1,764
eBay,
Inc.
28,665
1,035
Expedia
Group,
Inc.
1,917
207
Extended
Stay
America,
Inc.
10,010
149
Ford
Motor
Co.
55,821
519
Garmin,
Ltd.
3,337
326
General
Motors
Co.
107,353
3,929
Gentex
Corp.
24,202
701
Genuine
Parts
Co.
2,261
240
Goodyear
Tire
&
Rubber
Co.
(The)
16,183
252
Hasbro,
Inc.
72,665
7,673
Home
Depot,
Inc.
(The)
5,539
1,210
Lennar
Corp.
Class
A
4,925
275
Liberty
Global
PLC
Class
C(Æ)
63,821
1,391
Liberty
Media
Corp.
Class
A(Æ)
6,201
300
Liberty
SiriusXM
Group
Class
C(Æ)
6,835
329
Macy's,
Inc.
7,883
134
McDonald's
Corp.
4,160
822
Mohawk
Industries,
Inc.(Æ)
18,101
2,469
Netflix,
Inc.(Æ)
17,140
5,546
Nike,
Inc.
Class
B
4,493
455
Norwegian
Cruise
Line
Holdings,
Ltd.(Æ)
38,839
2,269
Omnicom
Group,
Inc.
3,467
281
Penske
Automotive
Group,
Inc.
3,280
165
PulteGroup,
Inc.
64,332
2,496
Ross
Stores,
Inc.
2,740
319
Royal
Caribbean
Cruises,
Ltd.
2,807
375
Sensata
Technologies
Holding
PLC(Æ)
5,004
270
Starbucks
Corp.
5,646
496
Tapestry,
Inc.
5,818
157
Target
Corp.
4,885
626
TJX
Cos.,
Inc.
3,703
226
Ulta
Salon
Cosmetics
&
Fragrance,
Inc.(Æ)
781
198
ViacomCBS
Inc.
Class
B
10,067
423
WABCO
Holdings,
Inc.(Æ)
3,992
541
Walmart,
Inc.
9,477
1,126
Walt
Disney
Co.
(The)
7,919
1,145
71,859
Consumer
Staples
-
5.1%
Archer-Daniels-Midland
Co.
8,634
400
Coca-Cola
Co.
(The)
21,846
1,209
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Constellation
Brands,
Inc.
Class
A
44,286
8,404
CVS
Health
Corp.
43,878
3,260
Ingredion,
Inc.
27,788
2,583
JM
Smucker
Co.
(The)
3,096
322
Molson
Coors
Brewing
Co.
Class
B(Ñ)
65,544
3,533
Mondelez
International,
Inc.
Class
A
9,921
546
PepsiCo,
Inc.
8,330
1,138
Procter
&
Gamble
Co.
(The)
17,389
2,172
Tyson
Foods,
Inc.
Class
A
31,091
2,831
26,398
Energy
-
6.1%
BP
PLC
-
ADR
98,296
3,710
Cabot
Oil
&
Gas
Corp.
10,541
184
Canadian
Natural
Resources,
Ltd.
156,088
5,049
Chevron
Corp.
35,745
4,308
ConocoPhillips
37,706
2,452
Exxon
Mobil
Corp.
31,565
2,203
Halliburton
Co.
130,476
3,193
Magna
International,
Inc.
Class
A
38,646
2,119
Marathon
Petroleum
Corp.
6,147
370
Phillips
66
5,747
640
Royal
Dutch
Shell
PLC
Class
B
-
ADR(Ñ)
44,095
2,644
Schlumberger,
Ltd.
109,033
4,383
Valero
Energy
Corp.
2,772
260
31,515
Financial
Services
-
22.7%
AerCap
Ireland
Capital,
Ltd.
/
AerCap
Global
Aviation
Trust(Æ)
39,216
2,411
Aflac,
Inc.
13,013
688
AGNC
Investment
Corp.(Æ)
37,352
660
Alliance
Data
Systems
Corp.
2,771
311
Allstate
Corp.
(The)
4,650
523
Ally
Financial,
Inc.
7,595
232
American
Express
Co.
6,013
749
American
Homes
4
Rent
Class
A(ö)
9,422
247
American
Tower
Corp.(ö)
2,084
479
Annaly
Capital
Management,
Inc.(ö)
218,267
2,056
Apple
Hospitality
REIT,
Inc.(ö)
30,365
493
AvalonBay
Communities,
Inc.(ö)
1,131
237
Banco
Santander
SA
-
ADR(Ñ)
351,913
1,457
Bank
of
America
Corp.
157,241
5,538
Bank
of
New
York
Mellon
Corp.
(The)
22,775
1,146
Berkshire
Hathaway,
Inc.
Class
B(Æ)
34,680
7,855
Broadridge
Financial
Solutions,
Inc.
5,339
660
Brookfield
Property
REIT,
Inc.
Class
A(Ñ)(ö)
12,292
227
Capital
One
Financial
Corp.
4,190
431
CBOE
Global
Markets,
Inc.
6,168
740
CBRE
Group,
Inc.
Class
A(Æ)
6,371
390
Charles
Schwab
Corp.
(The)
150,999
7,182
Chubb,
Ltd.
5,626
876
Citigroup,
Inc.
97,605
7,798
CME
Group,
Inc.
Class
A
29,499
5,921
Comerica,
Inc.
6,864
492
Crown
Castle
International
Corp.(ö)
23,084
3,281
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
CubeSmart(ö)
6,859
216
Discover
Financial
Services
4,249
360
E*Trade
Financial
Corp.
21,752
987
Equinix,
Inc.(Æ)(ö)
1,274
744
Essex
Property
Trust,
Inc.(ö)
782
235
Everest
Re
Group,
Ltd.
934
259
Fidelity
National
Information
Services,
Inc.
4,609
641
First
Republic
Bank
3,665
430
Fiserv,
Inc.(Æ)
2,540
294
FleetCor
Technologies,
Inc.(Æ)
1,063
306
Gaming
and
Leisure
Properties,
Inc.(ö)
30,077
1,295
Global
Payments,
Inc.
5,205
950
Goldman
Sachs
Group,
Inc.
(The)
1,102
253
Hartford
Financial
Services
Group,
Inc.
5,215
317
Host
Hotels
&
Resorts,
Inc.(ö)
9,213
171
Intercontinental
Exchange,
Inc.
4,759
440
Invitation
Homes,
Inc.(ö)
8,610
258
Jack
Henry
&
Associates,
Inc.
5,507
802
JPMorgan
Chase
&
Co.
46,508
6,483
KeyCorp
29,558
598
KKR
&
Co.,
Inc.
Class
A
233,059
6,798
Life
Storage,
Inc.(Æ)(ö)
2,382
258
M&T
Bank
Corp.
1,944
330
MasterCard,
Inc.
Class
A
31,077
9,280
Medical
Properties
Trust,
Inc.(ö)
13,740
290
Merck
&
Co.,
Inc.
15,728
1,430
MetLife,
Inc.
4,703
240
MFA
Financial,
Inc.(ö)
37,864
290
Morgan
Stanley
13,225
676
Northern
Trust
Corp.
4,706
500
PayPal
Holdings,
Inc.(Æ)
59,204
6,404
People's
United
Financial,
Inc.
14,121
239
PNC
Financial
Services
Group,
Inc.
(The)
4,233
676
Prudential
Financial,
Inc.
4,951
464
Public
Storage(ö)
963
205
Raymond
James
Financial,
Inc.
5,545
496
Regency
Centers
Corp.(ö)
3,454
218
Reinsurance
Group
of
America,
Inc.
Class
A
1,509
246
RenaissanceRe
Holdings,
Ltd.
1,288
252
SLM
Corp.
116,591
1,039
Starwood
Property
Trust,
Inc.(ö)
14,105
351
State
Street
Corp.
8,729
690
Sun
Communities,
Inc.(ö)
1,770
266
Synchrony
Financial
13,607
490
Travelers
Cos.,
Inc.
(The)
3,142
430
Truist
Financial
Corp.
19,179
1,080
Two
Harbors
Investment
Corp.(ö)
87,324
1,277
US
Bancorp
17,800
1,055
VEREIT,
Inc.(ö)
25,982
240
Virtu
Financial,
Inc.
Class
A
10,601
170
Visa,
Inc.
Class
A
46,442
8,726
Wells
Fargo
&
Co.
28,085
1,511
Western
Union
Co.
(The)
11,682
313
WP
Carey,
Inc.(ö)
2,849
228
116,277
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Health
Care
-
12.2%
Abbott
Laboratories
10,343
898
AbbVie,
Inc.
25,287
2,239
Agilent
Technologies,
Inc.
7,578
646
Amgen,
Inc.
1,304
314
Anthem,
Inc.(Æ)
860
260
AstraZeneca
PLC
-
ADR
29,086
1,450
Baxter
International,
Inc.
6,824
571
Becton
Dickinson
and
Co.
2,915
793
Boston
Scientific
Corp.(Æ)
5,939
269
Bristol-Myers
Squibb
Co.
35,427
2,274
Centene
Corp.(Æ)
2,844
179
Cerner
Corp.
7,539
553
Cigna
Corp.
2,621
536
Cooper
Cos.,
Inc.
(The)
719
231
Eli
Lilly
&
Co.
5,606
737
Gilead
Sciences,
Inc.
20,886
1,357
HCA
Healthcare,
Inc.
969
143
Horizon
Therapeutics
PLC(Æ)
38,741
1,402
Illumina,
Inc.(Æ)
17,636
5,851
IQVIA
Holdings,
Inc.(Æ)
62,201
9,611
Jazz
Pharmaceuticals
PLC(Æ)
8,855
1,322
Johnson
&
Johnson
33,429
4,876
Laboratory
Corp.
of
America
Holdings(Æ)
2,367
400
MEDNAX,
Inc.(Æ)
9,580
266
Medtronic
PLC
29,936
3,396
Mylan
NV(Æ)
57,555
1,157
Pfizer,
Inc.
113,786
4,458
Qiagen
NV(Æ)
5,970
202
Quest
Diagnostics,
Inc.
3,476
371
Regeneron
Pharmaceuticals,
Inc.(Æ)
844
317
Steris
PLC
1,563
238
Stryker
Corp.
2,243
471
Thermo
Fisher
Scientific,
Inc.
2,957
961
UnitedHealth
Group,
Inc.
33,592
9,876
Universal
Health
Services,
Inc.
Class
B
3,794
544
Vertex
Pharmaceuticals,
Inc.(Æ)
1,069
234
WellCare
Health
Plans,
Inc.(Æ)
1,401
463
Zimmer
Biomet
Holdings,
Inc.
15,244
2,282
Zoetis,
Inc.
Class
A
5,319
704
62,852
Materials
and
Processing
-
5.8%
Air
Products
&
Chemicals,
Inc.
3,247
763
AptarGroup,
Inc.
1,917
222
Ball
Corp.
129,687
8,386
Berry
Plastics
Group,
Inc.(Æ)
4,377
208
Crown
Holdings,
Inc.(Æ)
39,117
2,838
Dow,
Inc.
15,746
862
DowDuPont,
Inc.
13,965
897
Eastman
Chemical
Co.
21,525
1,706
Ecolab,
Inc.
6,338
1,223
Freeport-McMoRan,
Inc.
97,714
1,282
Huntsman
Corp.
75,198
1,817
Ingersoll-Rand
PLC
4,862
646
International
Flavors
&
Fragrances,
Inc.(Ñ)
2,888
373
Lennox
International,
Inc.
910
222
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
11
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Linde
PLC(Æ)
3,360
715
LyondellBasell
Industries
NV
Class
A
4,468
422
NewMarket
Corp.
796
387
Newmont
Goldcorp
Corp.
66,157
2,874
Nucor
Corp.
10,698
602
Owens
Corning
4,178
272
PPG
Industries,
Inc.
2,485
332
Reliance
Steel
&
Aluminum
Co.
4,021
482
Royal
Gold,
Inc.
7,575
926
Silgan
Holdings,
Inc.
8,624
268
Sonoco
Products
Co.
3,596
222
Steel
Dynamics,
Inc.
7,891
269
Westrock
Co.
7,415
318
29,534
Producer
Durables
-
5.4%
3M
Co.
2,193
387
Accenture
PLC
Class
A
4,568
962
AECOM(Æ)
6,434
277
American
Airlines
Group,
Inc.
106,025
3,040
Ametek,
Inc.
5,005
499
Automatic
Data
Processing,
Inc.
4,921
839
Boeing
Co.
(The)
1,463
477
Booz
Allen
Hamilton
Holding
Corp.
Class
A
7,696
547
Carlisle
Cos.,
Inc.
3,137
508
CH
Robinson
Worldwide,
Inc.(Ñ)
3,238
253
Cintas
Corp.
1,104
297
CoStar
Group,
Inc.(Æ)
900
538
CSX
Corp.
3,078
223
Cummins,
Inc.
3,179
569
Danaher
Corp.
4,739
727
Deere
&
Co.
1,450
251
Delta
Air
Lines,
Inc.
8,188
479
Eaton
Corp.
PLC
10,875
1,030
Emerson
Electric
Co.
3,665
279
Flir
Systems,
Inc.
4,588
239
Fortive
Corp.
3,870
296
General
Dynamics
Corp.
1,440
254
HD
Supply
Holdings,
Inc.(Æ)
5,959
240
HEICO
Corp.
1,206
138
Honeywell
International,
Inc.
6,140
1,087
Huntington
Ingalls
Industries,
Inc.
597
150
IDEX
Corp.
2,079
358
IHS
Markit,
Ltd.(Æ)
8,664
653
Illinois
Tool
Works,
Inc.
1,625
292
Johnson
Controls
International
PLC(Æ)
24,616
1,002
Kansas
City
Southern
1,960
300
L3Harris
Technologies,
Inc.
3,321
657
Lockheed
Martin
Corp.
1,215
473
Middleby
Corp.(Æ)
1,748
191
Northrop
Grumman
Corp.
1,657
570
PACCAR
Financial
Corp.
9,069
717
Paychex,
Inc.
8,520
725
Quanta
Services,
Inc.
6,202
252
Raytheon
Co.
4,335
953
Republic
Services,
Inc.
Class
A
4,849
435
Roper
Technologies,
Inc.
1,312
465
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
S&P
Global,
Inc.
2,205
602
Snap-on,
Inc.
1,486
252
Southwest
Airlines
Co.
7,581
409
Textron,
Inc.
6,057
270
Toro
Co.
(The)
4,294
342
Union
Pacific
Corp.
2,511
454
United
Parcel
Service,
Inc.
Class
B
2,401
281
United
Technologies
Corp.
8,540
1,279
Verisk
Analytics,
Inc.
Class
A
2,323
347
Waste
Management,
Inc.
4,708
537
Waters
Corp.(Æ)
2,319
542
27,944
Technology
-
21.4%
Adobe,
Inc.(Æ)
3,172
1,046
Allegion
PLC
2,791
348
Alphabet,
Inc.
Class
A(Æ)
9,409
12,602
Alphabet,
Inc.
Class
C(Æ)
1,971
2,635
Amdocs,
Ltd.
12,178
879
Amphenol
Corp.
Class
A
6,538
708
Ansys,
Inc.(Æ)
640
165
Apple,
Inc.
26,827
7,878
Applied
Materials,
Inc.
86,516
5,281
Arista
Networks,
Inc.(Æ)
16,855
3,428
Arrow
Electronics,
Inc.(Æ)
5,107
433
Autodesk,
Inc.(Æ)
31,304
5,743
Black
Knight,
Inc.(Æ)
3,882
250
Broadcom,
Inc.
2,842
898
CDW
Corp.
2,415
345
Cisco
Systems,
Inc.
34,685
1,663
Citrix
Systems,
Inc.
6,557
727
Cognizant
Technology
Solutions
Corp.
Class
A
4,227
262
Corning,
Inc.
7,541
220
Corteva,
Inc.
Class
W
63,899
1,889
Cypress
Semiconductor
Corp.
34,447
804
Dell
Technologies,
Inc.
Class
C(Æ)
7,292
375
Dolby
Laboratories,
Inc.
Class
A
5,543
381
DXC
Technology
Co.
3,665
138
F5
Networks,
Inc.(Æ)
2,416
337
Facebook,
Inc.
Class
A(Æ)
27,805
5,707
Genpact,
Ltd.
17,127
722
Hewlett
Packard
Enterprise
Co.
Class
H
25,802
409
HP,
Inc.(Æ)
25,392
522
Intel
Corp.
40,104
2,400
Intuit,
Inc.
1,727
452
IPG
Photonics
Corp.(Æ)
9,313
1,350
Jabil
Circuit,
Inc.
7,666
317
Juniper
Networks,
Inc.
20,695
510
Lam
Research
Corp.
1,205
352
Leidos
Holdings,
Inc.
5,593
547
LogMeIn,
Inc.
3,186
273
Marvell
Technology
Group,
Ltd.
100,970
2,682
Micron
Technology,
Inc.(Æ)
5,825
313
Microsoft
Corp.
171,700
27,078
Motorola
Solutions,
Inc.
1,828
295
NVIDIA
Corp.
10,359
2,437
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
ON
Semiconductor
Corp.(Æ)
10,724
261
Oracle
Corp.
14,347
760
Salesforce.com,
Inc.(Æ)
4,708
766
ServiceNow,
Inc.(Æ)
13,461
3,800
SYNNEX
Corp.
2,413
311
Synopsys,
Inc.(Æ)
3,910
544
Take-Two
Interactive
Software,
Inc.(Æ)
42,830
5,244
Teradyne,
Inc.
5,072
346
Texas
Instruments,
Inc.
9,529
1,222
VMware,
Inc.
Class
A(Æ)
1,967
299
Zynga,
Inc.
Class
A(Æ)
38,500
236
109,590
Utilities
-
2.9%
AT&T,
Inc.
187,496
7,326
Avangrid,
Inc.
4,903
251
CenterPoint
Energy,
Inc.
10,109
276
Consolidated
Edison,
Inc.
4,123
373
DTE
Energy
Co.
1,968
256
Duke
Energy
Corp.
6,335
578
Evergy,
Inc.
10,550
687
Eversource
Energy(Æ)
3,433
292
Exelon
Corp.
11,311
516
International
Business
Machines
Corp.
4,227
567
NextEra
Energy,
Inc.
1,291
313
Pinnacle
West
Capital
Corp.
1,968
177
PPL
Corp.
10,727
385
Sempra
Energy
1,950
295
Southern
Co.
(The)
4,650
296
Verizon
Communications,
Inc.
25,983
1,595
WEC
Energy
Group,
Inc.(Æ)(Ñ)
5,587
515
14,698
Total
Common
Stocks
(cost
$424,793)
490,667
Warrants
&
Rights
-
0.0%
Bristol-Myers
Squibb
Co.(Æ)
2021 Rights
5,115
15
Total
Warrants
&
Rights
(cost
$11)
15
Short-Term
Investments
-
4.2%
U.S.
Cash
Management
Fund(@)
21,728,104
(∞)
21,735
Total
Short-Term
Investments
(cost
$21,736)
21,735
Other
Securities
-
1.4%
U.S.
Cash
Collateral
Fund(×)(@)
7,335,095
(∞)
7,335
Total
Other
Securities
(cost
$7,335)
7,335
Total
Investments
101.2%
(identified
cost
$453,875)
519,752
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Other
Assets
and
Liabilities,
Net
-
(1.2%)
(6,390)
Net
Assets
-
100.0%
513,362
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
13
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
55
USD
8,886
03/20
155
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
155
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
$
71,859
$
—
$
—
$
—
$
71,859
14.0
Consumer
Staples
26,398
—
—
—
26,398
5.1
Energy
31,515
—
—
—
31,515
6.1
Financial
Services
116,277
—
—
—
116,277
22
.7
Health
Care
62,852
—
—
—
62,852
12.2
Materials
and
Processing
29,534
—
—
—
29,534
5.8
Producer
Durables
27,944
—
—
—
27,944
5.4
Technology
109,590
—
—
—
109,590
21.
4
Utilities
14,698
—
—
—
14,698
2.9
Warrants
&
Rights
15
—
—
—
15
—*
Short-Term
Investments
—
—
—
21,735
21,735
4.2
Other
Securities
—
—
—
7,335
7,335
1.4
Total
Investments
490,682
—
—
29,070
519,752
101.2
Other
Assets
and
Liabilities,
Net
(1.2)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
155
—
—
—
155
—*
A
Total
Other
Financial
Instruments
**
$
155
$
—
$
—
$
—
$
155
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
14
U.S.
Strategic
Equity
Fund
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
155
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
2,499
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
392
*
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
15
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
$
7,198
$
—
$
7,198
Total
Financial
and
Derivative
Assets
7,198
—
7,198
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
7,198
$
—
$
7,198
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
Citigroup
$
498
$
—
$
498
$
—
Fidelity
2,781
—
2,781
—
JPMorgan
Chase
2,933
—
2,933
—
Morgan
Stanley
986
—
986
—
Total
$
7,198
$
—
$
7,198
$
—
*
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.
16
U.S.
Strategic
Equity
Fund
I
i
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
453,875
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
519,752
Receivables:
Dividends
and
interest
.......................................................................................................................................................
566
Dividends
from
affiliated
funds
..........................................................................................................................................
37
Investments
sold
................................................................................................................................................................
4,345
From
broker(a)
...................................................................................................................................................................
254
Variation
margin
on
futures
contracts
.................................................................................................................................
155
Total
assets
.................................................................................................................................................
525,109
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
3,591
Fund
shares
redeemed
.......................................................................................................................................................
392
Accrued
fees
to
affiliates
....................................................................................................................................................
339
Other
accrued
expenses
.....................................................................................................................................................
90
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
7,335
Total
liabilities
.............................................................................................................................................
11,747
Net
Assets
............................................................................................................................................................
$
513,362
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
68,81
3
Shares
of
beneficial
interest
...........................................................................................................................................................
320
Additional
paid-in
capital
..............................................................................................................................................................
444,2
29
Net
Assets
............................................................................................................................................................
$
513,362
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:(#)
..........................................................................................................................................................
$
16.03
Net
assets
...............................................................................................................................................................................
$
513,361,635
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
32,029,733
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
7,198
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
29,070
(a)
Receivable
from
Broker
for
Futures
$
254
(#)
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
17
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
7,624
Dividends
from
affiliated
funds
.........................................................................................................................................
402
Securities
lending
income
(net)
.........................................................................................................................................
292
Total
investment
income
...............................................................................................................................................................
8,318
Expenses
Advisory
fees
....................................................................................................................................................................
3,162
Administrative
fees
...........................................................................................................................................................
217
Custodian
fees
...................................................................................................................................................................
73
Transfer
agent
fees
............................................................................................................................................................
19
Professional
fees
...............................................................................................................................................................
105
Trustees’
fees
....................................................................................................................................................................
17
Printing
fees
......................................................................................................................................................................
61
Miscellaneous
...................................................................................................................................................................
21
Total
expenses
...............................................................................................................................................................................
3,675
Net
investment
income
(loss)
........................................................................................................................................................
4,643
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
30,51
8
Investments
in
affiliated
funds
..........................................................................................................................................
5
Futures
contracts
..............................................................................................................................................................
2,499
Net
realized
gain
(loss)
..................................................................................................................................................................
33,0
22
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
75,31
9
Futures
contracts
..............................................................................................................................................................
392
Foreign
currency-related
transactions
...............................................................................................................................
2
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
75,71
3
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
108,735
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
113,378
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
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
4,643
$
4,199
Net
realized
gain
(loss)
......................................................................................................................
33,02
2
63,766
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
75,71
3
(107,106)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
113,378
(39,141)
Distributions
To
shareholders
.................................................................................................................................
(30,796)
(85,895)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(30,796)
(85,895)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
51,204
42,885
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
133,786
(82,151)
Net
Assets
Beginning
of
period
.................................................................................................................................
379,576
461,727
End
of
period
..........................................................................................................................................
$
513,362
$
379,576
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
4,553
$
72,578
255
$
4,570
Proceeds
from
reinvestment
of
distributions
1,958
30,796
6,333
85,89
5
Payments
for
shares
redeemed
(3,413)
(52,170)
(2,574)
(47,580
)
Total
increase
(decrease)
3,098
$
51,204
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.
20
U.S.
Strategic
Equity
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2019
13.12
.16
3.77
3.93
(.16)
(.86)
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
21
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(1.02)
16.03
30.26
513,362
.85
.85
1.07
100
(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
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
22
U.S.
Strategic
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
314,350
Administration
fees
21,531
Transfer
agent
fees
1,894
Trustee
fees
1,517
$
339,292
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
$
147,513
$
143,107
$
5
$
—
$
21,735
$
402
$
—
U.S.
Cash
Collateral
Fund
9,290
113,779
115,734
—
—
7,335
236
—
$
26,614
$
261,292
$
258,841
$
5
$
—
$
29,070
$
638
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
455,422,241
$
70,527,672
$
(6,042,481)
$
64,485,191
$
—
$
4,481,071
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
5,055,899
$
25,740,255
$
—
$
19,913,216
$
65,982,476
$
—
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
U.S.
Small
Cap
Equity
Fund
23
U.S.
Small
Cap
Equity
Fund
Total
Return
1
Year
23
.07%
5
Years
6
.62%§
10
Years
10
.50%§
Russell
2000
®
Index**
Total
Return
1
Year
25
.52%
5
Years
8
.23%§
10
Years
11
.83%§
U.S.
Small
Cap
Equity
Linked
Benchmark***
Total
Return
1
Year
25
.52%
5
Years
8
.23%§
10
Years
12
.1
3%§
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
24
U.S.
Small
Cap
Equity
Fund
The
U.S.
Small
Cap
Equity
Fund
(the
“Fund”)
employs
a
multi-
manager
approach
whereby
portions
of
the
Fund
are
allocated
to
different
money
manager
strategies.
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
advisor.
RIM
may
change
the
allocation
of
the
Fund’s
assets
among
money
managers
at
any
time,
including
not
allocating
Fund
assets
to
one
or
more
money
manager
strategies.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2019,
the
Fund
had
eight
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
long
term
capital
growth.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
23.07%.
This
is
compared
to
the
Fund’s
benchmark,
the
Russell
2000
®
Index,
which
gained
25.52%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Small
Blend
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
24.79%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
RIM
may
assign
a
money
manager
a
specific
style
or
capitalization
benchmark
other
than
the
Fund’s
index.
However,
the
Fund’s
primary
index
remains
the
benchmark
for
the
Fund
and
is
representative
of
the
aggregate
of
each
money
manager’s
benchmark
index.
How
did
market
conditions
affect
the
Fund’s
performance?
The
fiscal
year
ended
December
31,
2019
saw
the
Fund
underperform
the
Russell
2000
®
Index
and
the
Morningstar
®
Insurance
Small
Blend
peer
group.
With
a
more
dovish
U.S.
Federal
Reserve
in
2019,
the
U.S.
equity
market
produced
strong
positive
returns.
Growth
stocks
performed
better
than
value
stocks
for
the
12-month
period,
but
value
had
bursts
of
outperformance
including
the
sharp
“factor
rotation”
in
September.
Dynamic
stocks
slightly
outperformed
defensive
stocks
over
the
period.
However,
most
of
the
outperformance
came
in
the
fourth
quarter
as
phase
one
of
the
U.S.-China
trade
deal
lifted
investor
sentiment
and
business
surveys
showed
tentative
signs
of
a
bottoming
in
the
global
cycle.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
Over
the
period,
the
Fund
maintained
exposure
to
small
and
micro
capitalization
stocks
trading
at
discounted
valuations
as
well
as
companies
with
lower
volatility,
lower
momentum
and
higher
quality
characteristics.
This
positioning
was
in
recognition
of
perceived
valuation
opportunities
as
well
as
the
risk
of
elevated
levels
of
corporate
debt
and
unprofitability
among
U.S.
small
cap
companies.
Within
the
U.S.
small
cap
market,
a
preference
for
low
valuation
and
low
momentum
stocks
negatively
impacted
benchmark
relative
performance.
The
Fund’s
quality
positioning
also
detracted
as
companies
with
lower
return
on
equity
outperformed.
Sector
allocation
decisions
were
positive,
including
an
overweight
to
the
information
technology
sector
and
an
underweight
to
the
health
care
sector.
Over
the
period,
the
Fund
increasingly
moved
towards
a
more
neutral
positioning
compared
to
the
benchmark
as
earnings
growth
rates
for
U.S.
small/mid
cap
companies
meaningfully
decelerated
and
global
economic
data
moderated
throughout
2019.
Investor
sentiment
was
expected
to
remain
volatile
given
ongoing
uncertainty
around
the
impact
of
trade
disputes,
the
U.S.
presidential
election
and
the
direction
of
monetary
policy
going
into
2020.
Stock
selection
by
the
Fund’s
money
managers
was
the
primary
detractor
during
the
period,
including
underperforming
holdings
within
the
health
care,
industrials
and
information
technology
sectors.
The
Fund
employs
discretionary
and
non-discretionary
money
managers.
The
Fund’s
discretionary
money
managers
select
the
individual
portfolio
securities
for
the
assets
assigned
to
them.
The
Fund’s
non-discretionary
money
managers
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
certain
of
the
Fund’s
money
managers,
Copeland
Capital
Management,
LLC
was
the
best
performing
money
manager
for
the
fiscal
year
and
outperformed
the
Russell
2000
®
Index.
While
the
manager’s
overweights
to
the
energy
and
consumer
staples
sectors
were
headwinds,
strong
stock
selection
within
the
communication
services,
financials
and
energy
sectors
was
the
primary
driver
of
outperformance.
Boston
Partners
Global
Investors,
Inc.
faced
the
strongest
headwinds
over
the
fiscal
year
and
underperformed
their
50%
Russell
2000
®
Value
/
50%
Russell
2000
®
Microcap
Value
Index.
A
large
overweight
to
the
energy
sector
held
back
benchmark
relative
performance
over
the
one-year
period.
Additionally,
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
U.S.
Small
Cap
Equity
Fund
25
underperforming
holdings
within
the
energy,
information
technology
and
health
care
sectors
were
detractors
over
the
period.
During
the
period,
RIM
utilized
a
positioning
strategy
to
control
Fund-level
exposures
and
risks
through
the
purchase
of
a
stock
portfolio.
Using
the
output
from
a
quantitative
model,
the
strategy
seeks
to
position
the
portfolio
to
meet
RIM’s
overall
preferred
positioning
with
respect
to
Fund
exposures
along
factor
and
industry
dimensions.
The
Fund’s
active
positioning
strategy
provided
exposure
to
RIM’s
strategic
equity
beliefs
associated
with
value,
quality
and
low
volatility
factors.
During
the
fiscal
year,
the
strategy
slightly
outperformed
the
Russell
2000
®
Index.
Factor
impact
was
negative
including
tilts
toward
low
valuation
and
low
momentum
stocks.
Sector
allocation
decisions
were
additive
to
benchmark
relative
performance,
including
underweights
to
the
energy
and
consumer
staples
sectors.
During
the
period,
RIM
partially
equitized
the
Fund’s
cash
using
index
futures
contracts
to
provide
the
Fund
with
greater
market
exposure.
This
had
a
positive
impact
on
the
Fund’s
absolute
performance.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
In
June
2019,
RIM
determined
to
no
longer
allocate
Fund
assets
to
DePrince,
Race
&
Zollo,
Inc.
and
Penn
Capital
Management
Company,
Inc.’s
strategies.
Allocations
to
the
other
money
managers
were
adjusted
as
a
result.
In
September
2019,
RIM
hired
Ranger
Investment
Management,
L.P.,
terminated
Falcon
Point
Investors,
LLC
and
determined
to
no
longer
allocate
Fund
assets
to
Calamos
Advisors,
LLC’s
strategy.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2019
Styles
Ancora
Advisor,
LLC
Market-Oriented
Boston
Partners
Global
Investors,
Inc.
Value
Calamos
Advisors
LLC
Growth
Copeland
Capital
Management
LLC
Market-Oriented
DePrince
,
Race
&
Zollo
,
Inc.
Value
Jacobs
Levy
Equity
Management,
Inc.
Market-Oriented
Penn
Capital
Management
Company,
Inc.
Market-Oriented
Ranger
Investment
Management
L.P.
Growth
*
Assumes
initial
investment
on
January
1,
2010.
**
Russell
2000
®
Index
measures
the
performance
of
the
small-cap
segment
of
the
U.S.
equity
universe.
The
Russell
2000
®
Index
is
a
subset
of
the
Russell
3000
®
Index
representing
approximately
10%
of
the
total
market
capitalization
of
that
index.
It
includes
approximately
2000
of
the
smallest
securities
based
on
a
combination
of
their
market
cap
and
current
index
membership.
The
Russell
2000
®
Index
is
constructed
to
provide
a
comprehensive
and
unbiased
small-cap
opportunity
barometer
and
is
completely
reconstituted
annually
to
ensure
larger
stocks
do
not
distort
the
performance
and
characteristics
of
the
true
small-cap
opportunity
set.
***
The
U.S.
Small
Cap
Equity
Linked
Benchmark
provides
a
means
to
compare
the
Fund’s
average
annual
returns
to
a
secondary
benchmark
that
takes
into
account
historical
changes
in
the
Fund’s
primary
benchmark.
The
U.S.
Small
Cap
Equity
Linked
Benchmark
represents
the
returns
of
the
Russell
2500
TM
Index
through
April
30,
2012
and
the
returns
of
the
Russell
2000
®
Index
thereafter.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
26
U.S.
Small
Cap
Equity
Fund
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
July
1,
2019
to
December
31,
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
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,058.80
$
1,018.
80
Expenses
Paid
During
Period*
$
6.59
$
6.46
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.27%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments
—
December
31,
2019
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
$
Common
Stocks
-
100.5%
Consumer
Discretionary
-
12.6%
Aaron's,
Inc.
Class
A(Û)
9,380
535
Abercrombie
&
Fitch
Co.
Class
A
4,693
81
Adtalem
Global
Education,
Inc.(Æ)(Û)
14,431
504
American
Axle
&
Manufacturing
Holdings,
Inc.(Æ)(Ð)
14,300
154
American
Eagle
Outfitters,
Inc.
15,404
226
American
Public
Education,
Inc.(Æ)
7,586
208
America's
Car-Mart,
Inc.(Æ)
9,752
1,070
B.
Riley
Financial,
Inc.
41,450
1,045
Barnes
&
Noble
Education,
Inc.(Æ)
32,028
137
Bassett
Furniture
Industries,
Inc.
1,600
27
Bed
Bath
&
Beyond,
Inc.
11,061
191
Big
Lots,
Inc.
2,751
79
BJ's
Restaurants,
Inc.
25,434
966
BJ's
Wholesale
Club
Holdings,
Inc.(Æ)
3,377
77
Bloomin
'
Brands,
Inc.
9,935
219
BMC
Stock
Holdings,
Inc.(Æ)
8,370
240
Brinker
International,
Inc.(Ð)
2,840
119
Cable
One,
Inc.
191
284
Carrols
Restaurant
Group,
Inc.(Æ)
42,172
297
Cavco
Industries,
Inc.(Æ)
4,894
957
Celestica,
Inc.(Æ)
17,514
145
Central
European
Media
Enterprises,
Ltd.
Class
A(Æ)
41,073
186
Central
Garden
&
Pet
Co.
Class
A(Æ)(Û)
7,337
216
Century
Casinos,
Inc.(Æ)
35,244
279
Cheesecake
Factory,
Inc.
(The)
3,398
132
Chegg
,
Inc.(Æ)(Ñ)
14,477
549
Chico's
FAS,
Inc.
20,236
77
Children's
Place,
Inc.
(The)(Ñ)
5,727
358
Churchill
Downs,
Inc.
1,620
222
Chuy's
Holdings,
Inc.(Æ)(Ð)
1,480
38
Cooper
Tire
&
Rubber
Co.
5,184
149
Cooper-Standard
Holdings,
Inc.(Æ)(Û)
3,240
107
Cracker
Barrel
Old
Country
Store,
Inc.(Ñ)
998
153
Cumulus
Media,
Inc.
Class
A(Æ)
36,429
640
Dave
&
Buster's
Entertainment,
Inc.
22,184
892
Deckers
Outdoor
Corp.(Æ)
669
113
Del
Taco
Restaurants,
Inc.(Æ)
58,506
462
Delta
Apparel,
Inc.(Æ)
17,844
555
Dillard's,
Inc.
Class
A(Ñ)
3,015
222
Eldorado
Resorts,
Inc.(Æ)(Ñ)
7,632
455
Eros
International
PLC(Æ)(Ñ)
32,989
112
Ethan
Allen
Interiors,
Inc.
6,018
115
Fiesta
Restaurant
Group,
Inc.(Æ)
4,800
47
Fossil
Group,
Inc.(Æ)
2,700
21
Foundation
Building
Materials,
Inc.(Æ)
1,300
25
Genesco,
Inc.(Æ)
12,478
598
Golden
Entertainment,
Inc.(Æ)
900
17
Goodyear
Tire
&
Rubber
Co.
(The)
12,300
191
GoPro,
Inc.
Class
A(Æ)
6,900
30
Group
1
Automotive,
Inc.
537
54
Habit
Restaurants,
Inc.
(The)
Class
A(Æ)
2,700
28
Hamilton
Beach
Brands
Holding
Co.
Class
A
32,863
628
Haverty
Furniture
Cos.,
Inc.(Û)
4,600
93
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
HealthStream
,
Inc.(Æ)(Û)
1,560
42
Hillenbrand,
Inc.
2,010
67
Hooker
Furniture
Corp.
3,900
100
Houghton
Mifflin
Harcourt
Co.(Æ)(Ð)
5,796
36
Inter
Parfums
,
Inc.
11,071
805
International
Game
Technology
PLC
8,900
133
IntriCon
Corp.(Æ)(Ñ)
24,751
446
J
Alexander's
Holdings,
Inc.(Æ)
47,760
457
Jack
in
the
Box,
Inc.(Û)
2,490
194
JC
Penney
Co.,
Inc.(Æ)
29,668
33
John
Wiley
&
Sons,
Inc.
Class
A
1,291
63
K12,
Inc.(Æ)(Û)
4,380
89
KB
Home
1,793
61
Kontoor
Brands,
Inc.
25,950
1,091
Laureate
Education,
Inc.
Class
A(Æ)
5,155
91
La-Z-Boy,
Inc.
Class
Z
4,476
141
Libbey
,
Inc.(Æ)
66,478
96
Liberty
Braves
Group
Class
C(Æ)(Ð)
550
16
Lithia
Motors,
Inc.
Class
A
989
145
Lovesac
Co.
(The)(Æ)(Ñ)
12,390
199
Madison
Square
Garden
Co.
(The)
Class
A(Æ)(Ð)
922
271
Marchex
,
Inc.
Class
B(Æ)
4,000
15
MarineMax
,
Inc.(Æ)
2,778
46
Marriott
Vacations
Worldwide
Corp.
5,946
766
Matthews
International
Corp.
Class
A
1,973
75
Meredith
Corp.
1,842
60
Monro
Muffler
Brake,
Inc.(Ñ)
3,052
239
Motorcar
Parts
of
America,
Inc.(Æ)
6,352
140
Murphy
USA,
Inc.(Æ)
1,246
146
National
CineMedia
,
Inc.
4,019
29
Nautilus,
Inc.(Æ)
8,509
15
Nexstar
Broadcasting,
Inc.
Class
A
1,007
118
Oxford
Industries,
Inc.
618
47
PetIQ
,
Inc.(Æ)(Ñ)
27,733
695
Pool
Corp.
1,376
292
Potbelly
Corp.(Æ)
2,100
9
Quotient
Technology,
Inc.(Æ)(Ð)
7,566
75
Regis
Corp.(Æ)(Ð)
4,000
71
Rent-A-Center,
Inc.
Class
A
700
20
Restoration
Hardware(Æ)
309
66
REV
Group,
Inc.
3,200
39
Rocky
Brands,
Inc.
200
6
Rosetta
Stone,
Inc.(Æ)
2,107
38
Ruth's
Hospitality
Group,
Inc.
2,400
52
Sally
Beauty
Holdings,
Inc.(Æ)(Ñ)
32,466
593
Scholastic
Corp.
5,060
195
Scientific
Games
Corp.
Class
A(Æ)(Ð)
1,100
29
Skyline
Champion
Corp.(Æ)
23,579
747
SMART
Global
Holdings,
Inc.(Æ)
12,965
492
Sportsman's
Warehouse
Holdings,
Inc.(Æ)(Ñ)
18,143
146
Stamps.com,
Inc.(Æ)
1,097
92
Standard
Motor
Products,
Inc.
3,176
169
Steven
Madden,
Ltd.
11,062
476
Superior
Uniform
Group,
Inc.
17,988
244
TEGNA,
Inc.
3,910
65
Texas
Roadhouse,
Inc.
Class
A
2,803
158
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
TiVo
Corp.
31,458
266
Travelzoo
,
Inc.(Æ)(Û)
1,100
12
Tribune
Publishing
Co.(Æ)
1,300
17
Tupperware
Brands
Corp.
7,141
61
Turtle
Beach
Corp.(Æ)(Ñ)
12,686
120
Viad
Corp.
1,650
111
Vista
Outdoor,
Inc.(Æ)(Ð)
11,100
83
Visteon
Corp.(Æ)(Ð)
1,918
166
Wingstop
,
Inc.
2,520
217
Wolverine
World
Wide,
Inc.
35,183
1,188
WW
International,
Inc.(Æ)
2,069
79
Zumiez
,
Inc.(Æ)
2,271
78
28,764
Consumer
Staples
-
3.1%
Calavo
Growers,
Inc.(Ñ)
4,989
452
Casey's
General
Stores,
Inc.
1,399
222
Core-Mark
Holding
Co.,
Inc.
5,693
155
Cott
Corp.
15,897
217
Energizer
Holdings,
Inc.
-
GDR(Æ)(Ñ)
28,360
1,289
Farmer
Brothers
Co.(Æ)
23,565
355
Fresh
Del
Monte
Produce,
Inc.
11,794
412
Helen
of
Troy,
Ltd.(Æ)
673
121
Herbalife
Nutrition,
Ltd.(Æ)(Ð)
1,760
84
J&J
Snack
Foods
Corp.
5,052
931
Lancaster
Colony
Corp.
454
73
Lifevantage
Corp.(Æ)(Ð)
2,200
34
Medifast
,
Inc.
520
57
MGP
Ingredients,
Inc.
1,152
56
National
Beverage
Corp.(Æ)(Ñ)
2,148
110
Nomad
Foods,
Ltd.(Æ)
40,232
900
Performance
Food
Group
Co.(Æ)
2,840
146
PolyOne
Corp.(Ð)
5,050
186
Post
Holdings,
Inc.(Æ)(Ð)
470
51
Primo
Water
Corp.(Æ)
39,385
442
Quanex
Building
Products
Corp.
4,400
75
Sanderson
Farms,
Inc.(Ð)
1,250
220
SpartanNash
Co.
4,000
57
Universal
Corp.
2,315
132
USANA
Health
Sciences,
Inc.(Æ)(Û)
3,179
250
Weis
Markets,
Inc.
1,415
57
7,084
Energy
-
3.6%
Algonquin
Power
&
Utilities
Corp.
18,863
267
Amplify
Energy
Corp.(Æ)
16,995
112
Berry
Petroleum
Corp.
9,239
87
Cabot
Oil
&
Gas
Corp.(Ð)
4,500
78
CONSOL
Energy,
Inc.(Æ)
300
4
Delek
US
Holdings,
Inc.(Ñ)
9,445
317
Devon
Energy
Corp.(Ð)
700
18
Exterran
Corp.(Æ)
3,800
30
Forum
Energy
Technologies,
Inc.(Æ)
15,200
26
Green
Brick
Partners,
Inc.(Æ)
81,058
930
Green
Plains,
Inc.(Æ)
4,502
69
Gulf
Island
Fabrication,
Inc.(Æ)
200
1
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Gulfport
Energy
Corp.(Æ)
37,129
113
HollyFrontier
Corp.
3,800
193
KLX
Energy
Services
Holdings,
Inc.(Æ)
25,937
167
Luxfer
Holdings
PLC
-
ADR
14,309
265
Magnolia
Oil
&
Gas
Corp.(Æ)(Ñ)
49,651
625
Matrix
Service
Co.(Æ)
24,061
551
National
Energy
Services
Reunited
Corp.
(Æ)(Ñ)
63,897
583
Natural
Gas
Services
Group,
Inc.(Æ)
28,417
348
Newpark
Resources,
Inc.(Æ)
69,540
436
NexTier
Oilfield
Solutions,
Inc.(Æ)
3,416
23
NOW,
Inc.(Æ)
7,781
87
Oceaneering
International,
Inc.(Æ)
6,389
95
Panhandle
Oil
and
Gas,
Inc.
Class
A
17,299
194
Par
Pacific
Holdings,
Inc.(Æ)
7,000
163
Parker
Drilling
Co.(Æ)
600
14
Parsley
Energy,
Inc.
Class
A
9,843
186
PBF
Energy,
Inc.
Class
A
5,400
169
Peabody
Energy
Corp.
16,909
154
RigNet
,
Inc.(Æ)
7,357
49
SEACOR
Holdings,
Inc.(Æ)(Ð)
510
22
Select
Energy
Services,
Inc.
Class
A(Æ)
50,919
473
Smart
Sand,
Inc.(Æ)
5,400
14
Solaris
Oilfield
Infrastructure,
Inc.
Class
A(Ñ)
41,033
574
TETRA
Technologies,
Inc.(Æ)
238,994
468
Warrior
Met
Coal,
Inc.
5,951
126
World
Fuel
Services
Corp.(Ð)(Û)
5,860
254
8,285
Financial
Services
-
26.0%
1st
Source
Corp.
1,940
101
AG
Mortgage
Investment
Trust,
Inc.(ö)
5,566
86
Altisource
Portfolio
Solutions
SA(Æ)
600
12
Amalgamated
Bank
Class
A
1,100
21
American
Campus
Communities,
Inc.(ö)
7,764
365
American
Equity
Investment
Life
Holding
Co.
10,181
304
American
Homes
4
Rent
Class
A(ö)
9,040
237
Americold
Realty
Trust(Ñ)(ö)
5,729
201
Ameris
Bancorp
11,635
495
Amerisafe
,
Inc.
2,368
156
Apartment
Investment
&
Management
Co.
Class
A(ö)
1,470
76
Apollo
Commercial
Real
Estate
Finance,
Inc.(ö)
8,003
146
Argo
Group
International
Holdings,
Ltd.
5,157
339
Arrow
Financial
Corp.
382
14
Artisan
Partners
Asset
Management,
Inc.
Class
A
1,290
42
Associated
Banc-Corp.(Ð)
5,100
112
Atlantic
Capital
Bancshares,
Inc.(Æ)
38,360
704
Atlantic
Union
Bankshares
Corp.(Æ)
3,410
128
Axis
Capital
Holdings,
Ltd.(Û)
5,990
356
Axos
Financial,
Inc.(Æ)
4,061
123
Banc
of
California,
Inc.
56,156
965
BancFirst
Corp.
930
58
BancorpSouth
Bank
4,137
130
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
Bank
of
NT
Butterfield
&
Son,
Ltd.
(The)
2,182
81
Bank
OZK
7,531
230
BankFinancial
Corp.
1,700
22
Banner
Corp.(Û)
14,591
826
Baycom
Corp.(Æ)(Ð)
1,200
27
Berkshire
Hills
Bancorp,
Inc.
3,099
102
Blackstone
Mortgage
Trust,
Inc.
Class
A(Ñ)(ö)
8,482
316
Bridgewater
Bancshares,
Inc.(Æ)
1,200
17
Brighthouse
Financial,
Inc.(Æ)
5,997
235
Brightsphere
Investment
Group,
Inc.
12,500
128
Brixmor
Property
Group,
Inc.(ö)
16,608
359
Business
First
Bancshares,
Inc.(Û)
300
7
Byline
Bancorp,
Inc.
13,301
260
Cadence
Bancorp
10,395
188
Camden
National
Corp.
930
43
Camden
Property
Trust(Ð)(ö)
4,240
450
Cannae
Holdings,
Inc.(Æ)
36,480
1,356
Capital
City
Bank
Group,
Inc.
16,110
492
Capstar
Financial
Holdings,
Inc.
25,983
433
Capstead
Mortgage
Corp.(ö)
9,877
78
Carter
Bank
&
Trust(Æ)
23,720
563
Cathay
General
Bancorp
3,284
125
CBTX,
Inc.
1,390
43
CenterState
Bank
Corp.
27,069
676
Central
Pacific
Financial
Corp.
21,400
633
Century
Bancorp,
Inc.
Class
A
2,122
191
Chemung
Financial
Corp.
100
4
Civista
Bancshares,
Inc.
4,452
107
Clipper
Realty,
Inc.(ö)(Û)
600
6
CNB
Financial
Corp.
550
18
CNO
Financial
Group,
Inc.
5,560
101
Cohen
&
Steers,
Inc.
3,812
239
Columbia
Banking
System,
Inc.
3,282
134
Columbia
Property
Trust,
Inc.(ö)
7,500
157
Community
Bank
System,
Inc.
1,861
132
Consolidated-
Tomoka
Land
Co.
5,700
344
CoreCivic
,
Inc.(Æ)
14,317
249
CorePoint
Lodging,
Inc.(ö)
4,200
45
Cowen
Group,
Inc.
Class
A(Æ)
19,691
310
Cullen/Frost
Bankers,
Inc.(Ð)
2,780
272
CVB
Financial
Corp.
5,750
124
CyrusOne
,
Inc.(ö)
8,511
557
Deluxe
Corp.
3,135
156
DiamondRock
Hospitality
Co.(ö)
23,169
257
Diversified
Healthcare
Trust(Æ)
15,605
132
Donegal
Group,
Inc.
Class
A
100
1
Douglas
Emmett,
Inc.(ö)(Û)
10,040
441
E*Trade
Financial
Corp.
930
42
Eagle
Bancorp,
Inc.
8,371
407
East
West
Bancorp,
Inc.(Ð)
4,170
203
EastGroup
Properties,
Inc.(ö)
631
84
Emerald
Expositions
Events,
Inc.
1,800
19
Employers
Holdings,
Inc.(Û)
1,110
46
Enova
International,
Inc.(Æ)
1,400
34
Equity
Commonwealth(ö)(Û)
20,768
681
Essent
Group,
Ltd.
11,096
577
Evercore
,
Inc.
Class
A(Û)
4,107
307
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Everest
Re
Group,
Ltd.(Ð)(Û)
1,007
279
Everi
Holdings,
Inc.(Æ)
932
13
Ezcorp
,
Inc.
Class
A(Æ)(Ð)
4,168
28
FB
Financial
Corp.
2,550
101
Federal
Agricultural
Mortgage
Corp.
Class
C
2,356
197
Federated
Investors,
Inc.
Class
B
5,472
178
FGL
Holdings
7,476
80
First
American
Financial
Corp.
3,870
226
First
BanCorp
(Û)
13,671
237
First
Defiance
Financial
Corp.
460
14
First
Financial
Bankshares
,
Inc.
1,876
66
First
Financial
Corp.
100
5
First
Foundation,
Inc.
38,255
666
First
Hawaiian,
Inc.
5,650
163
First
Industrial
Realty
Trust,
Inc.(ö)
1,155
48
First
Interstate
BancSystem
,
Inc.
Class
A
10,511
441
First
Merchants
Corp.
1,955
81
First
Midwest
Bancorp,
Inc.
4,670
108
Flagstar
Bancorp,
Inc.
1,438
55
Forestar
Group,
Inc.(Æ)
1,078
22
Forrester
Research,
Inc.(Æ)
1,153
48
Franklin
Street
Properties
Corp.(Ð)(ö)
4,900
42
Fulton
Financial
Corp.
6,295
110
Gaming
and
Leisure
Properties,
Inc.(ö)
20,272
873
GEO
Group,
Inc.
(The)(ö)
9,752
162
Glacier
Bancorp,
Inc.
2,681
123
Gladstone
Commercial
Corp.(ö)
3,100
68
Goosehead
Insurance,
Inc.
Class
A(Ñ)
5,113
217
Great
Southern
Bancorp,
Inc.
470
30
Great
Western
Bancorp,
Inc.
9,125
317
Green
Dot
Corp.
Class
A(Æ)(Ð)
7,923
185
Guaranty
Bancshares,
Inc.(Û)
460
15
Hallmark
Financial
Services,
Inc.(Æ)
32,379
569
Hancock
Holding
Co.
5,056
222
Hanmi
Financial
Corp.
2,700
54
Hanover
Insurance
Group,
Inc.
(The)
2,790
381
HarborOne
Bancorp,
Inc.(Æ)
1,077
12
HCI
Group,
Inc.(Ð)
1,210
55
Healthcare
Realty
Trust,
Inc.(ö)
1,073
36
Healthcare
Trust
of
America,
Inc.
Class
A(ö)
5,580
169
Heartland
Financial
USA,
Inc.
4,017
199
Heritage
Insurance
Holdings,
Inc.(Ð)
400
5
Hilltop
Holdings,
Inc.
5,038
126
Home
Bancorp,
Inc.(Û)
280
11
Home
BancShares
,
Inc.
20,140
396
HomeStreet
,
Inc.
37,590
1,278
HomeTrust
Bancshares,
Inc.(Û)
750
20
Hope
Bancorp,
Inc.
7,221
107
I3
Verticals,
Inc.
Class
A(Æ)
52,102
1,471
Iberiabank
Corp.
2,718
203
Independence
Realty
Trust,
Inc.(ö)
55,902
787
Independent
Bank
Corp.(Û)
56,995
1,291
Independent
Bank
Group,
Inc.
2,056
114
Industrial
Logistics
Properties
Trust(ö)
5,618
126
Interactive
Brokers
Group,
Inc.
Class
A
470
22
International
Bancshares
Corp.
1,821
78
Invesco
Mortgage
Capital,
Inc.(ö)
9,507
158
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
Investors
Bancorp,
Inc.
8,500
101
Investors
Real
Estate
Trust(ö)
8,514
617
James
River
Group
Holdings,
Ltd.(Ð)
5,558
229
Janus
Henderson
Group
PLC
1,838
45
JER
Investment
Trust,
Inc.(Æ)(Š)(Þ)
1,771
—
Kearny
Financial
Corp.
85,406
1,181
Kemper
Corp.
4,889
379
Kennedy-Wilson
Holdings,
Inc.
17,875
399
Kingstone
Cos.,
Inc.
200
2
KKR
Real
Estate
Finance
Trust,
Inc.(ö)
7,946
162
Ladder
Capital
Corp.
Class
A(ö)
21,267
384
Lakeland
Financial
Corp.
3,759
184
Lamar
Advertising
Co.
Class
A(Ð)(ö)
1,100
98
Lazard,
Ltd.
Class
A(Ð)
840
34
Legacy
Housing
Corp.(Æ)
19,199
319
LendingClub
Corp.(Æ)(Ð)
7,879
99
LendingTree,
Inc.(Æ)(Ñ)
1,305
396
Life
Storage,
Inc.(Æ)(ö)
920
100
Live
Oak
Bancshares,
Inc.
1,860
35
LPL
Holdings,
Inc.
280
26
LTC
Properties,
Inc.(Ð)(ö)
1,380
62
Luther
Burbank
Corp.
1,100
13
Macatawa
Bank
Corp.
1,100
12
Marcus
&
Millichap,
Inc.(Æ)(Ð)
2,390
89
Mercantile
Bank
Corp.
830
30
Merchants
Bancorp
1,900
37
Mercury
General
Corp.(Ð)
280
14
Meridian
Bancorp,
Inc.
1,400
28
Meta
Financial
Group,
Inc.
1,603
59
Metropolitan
Bank
Holding
Corp.(Æ)
190
9
MGIC
Investment
Corp.
28,884
409
MidWestOne
Financial
Group,
Inc.
650
24
Moelis
&
Co.
Class
A
1,711
55
Morningstar,
Inc.
1,345
204
National
Bank
Holdings
Corp.
Class
A
13,627
480
National
General
Holdings
Corp.
8,500
188
National
Health
Investors,
Inc.(ö)
1,385
113
NBT
Bancorp,
Inc.
5,373
218
New
York
Mortgage
Trust,
Inc.(ö)
12,377
77
NexPoint
Residential
Trust,
Inc.(ö)
9,854
443
Nicolet
Bankshares
,
Inc.(Æ)
1,020
75
NMI
Holdings,
Inc.
Class
A(Æ)
1,734
58
Northeast
Bank
12,696
279
Northrim
BanCorp
,
Inc.
400
15
Northwest
Bancshares,
Inc.
11,108
185
OceanFirst
Financial
Corp.
3,636
93
OFG
Bancorp(Ð)
1,300
31
Old
National
Bancorp
2,777
51
Old
Second
Bancorp,
Inc.
33,978
457
Opus
Bank(Ð)
4,510
117
Origin
Bancorp,
Inc.
13,582
514
Pacific
Premier
Bancorp,
Inc.
3,988
130
Park
Hotels
&
Resorts,
Inc.(ö)
9,985
258
PCSB
Financial
Corp.
54,129
1,096
PennyMac
Financial
Services,
Inc.
2,108
72
PennyMac
Mortgage
Investment
Trust(ö)
4,050
90
Peoples
Bancorp,
Inc.
1,200
42
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
People's
United
Financial,
Inc.
11,099
188
People's
Utah
Bancorp
1,150
35
Physicians
Realty
Trust(ö)
2,506
47
Piedmont
Office
Realty
Trust,
Inc.
Class
A(ö)
15,214
338
Piper
Jaffray
Cos.
1,100
88
Plymouth
Industrial
REIT,
Inc.(ö)
25,333
466
Popular,
Inc.
16,440
966
Potlatch
Corp.(ö)
28,276
1,223
ProAssurance
Corp.
1,294
47
Prosperity
Bancshares,
Inc.
2,690
193
Protective
Insurance
Corp.
Class
B
400
6
Provident
Financial
Services,
Inc.
6,970
172
PS
Business
Parks,
Inc.(ö)
1,471
243
QCR
Holdings,
Inc.
1,020
45
QTS
Realty
Trust,
Inc.
Class
A(ö)
4,328
235
Radian
Group,
Inc.
10,102
254
Rayonier,
Inc.(ö)
5,680
186
RE/MAX
Holdings,
Inc.
Class
A
3,528
136
Regency
Centers
Corp.(Ð)(ö)
3,760
237
Reinsurance
Group
of
America,
Inc.
Class
A(Û)
2,950
481
Renasant
Corp.
3,192
113
Republic
First
Bancorp,
Inc.(Æ)
802
3
Retail
Properties
of
America,
Inc.
Class
A(ö)
(Û)
17,400
233
Retail
Value,
Inc.(ö)
1,020
38
RLJ
Lodging
Trust(ö)
14,620
259
RMR
Group,
Inc.
(The)
Class
A
1,546
71
Ryman
Hospitality
Properties,
Inc.(ö)
3,604
312
Sabra
Health
Care
REIT,
Inc.(ö)
6,419
137
Selective
Insurance
Group,
Inc.
1,483
97
ServisFirst
Bancshares,
Inc.
2,285
86
Silvercrest
Asset
Management
Group,
Inc.
Class
A
18,391
231
Simmons
First
National
Corp.
Class
A
3,993
107
SITE
Centers
Corp.(ö)
86,914
1,218
SL
Green
Realty
Corp.(ö)
2,550
234
SmartFinancial
,
Inc.
1,500
35
South
State
Corp.
4,106
356
Southern
First
Bancshares,
Inc.(Æ)
280
12
Spirit
Realty
Capital,
Inc.(Ð)(ö)
3,700
182
Stewart
Information
Services
Corp.
6,404
261
Stifel
Financial
Corp.
8,969
544
Summit
Hotel
Properties,
Inc.(ö)
8,146
101
Sunstone
Hotel
Investors,
Inc.(ö)(Û)
39,854
555
Tanger
Factory
Outlet
Centers,
Inc.(Ñ)(ö)
9,171
135
Terreno
Realty
Corp.(ö)
752
41
Texas
Capital
Bancshares,
Inc.(Æ)(Û)
3,520
200
Third
Point
Reinsurance,
Ltd.(Æ)(Ð)
11,800
124
Tiptree
Financial,
Inc.
Class
A
36,377
296
Towne
Bank
3,070
85
TPG
RE
Finance
Trust,
Inc.(ö)
7,310
148
TriCo
Bancshares
930
38
Triumph
Bancorp,
Inc.(Æ)
13,951
530
Trustmark
Corp.
3,532
122
UMB
Financial
Corp.
2,824
194
UMH
Properties,
Inc.(ö)
52,485
826
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
Umpqua
Holdings
Corp.(Ð)
2,700
48
United
Bankshares
,
Inc.
2,945
114
United
Community
Banks,
Inc.
15,975
493
United
Community
Financial
Corp.
3,100
36
United
Insurance
Holdings
Corp.
4,300
54
Universal
Insurance
Holdings,
Inc.
6,231
174
Unum
Group
650
19
Valley
National
Bancorp
11,240
129
Voya
Financial,
Inc.(Ð)
3,980
243
Waddell
&
Reed
Financial,
Inc.
Class
A(Ð)
19,300
323
Washington
Federal,
Inc.
5,948
218
WesBanco
,
Inc.
1,925
73
WR
Berkley
Corp.(Ð)
3,760
260
WSFS
Financial
Corp.
2,859
126
Xenia
Hotels
&
Resorts,
Inc.(ö)
4,972
107
59,170
Health
Care
-
14.4%
Acadia
Pharmaceuticals,
Inc.(Æ)
5,285
226
Acceleron
Pharma,
Inc.(Æ)
4,293
228
Accuray
,
Inc.(Æ)
125,783
355
Acorda
Therapeutics,
Inc.(Æ)(Ð)
19,900
41
Aeglea
BioTherapeutics
,
Inc.(Æ)
11,788
90
Akcea
Therapeutics,
Inc.(Æ)(Ñ)
10,491
178
Akebia
Therapeutics,
Inc.(Æ)(Ð)
7,061
45
Akorn
,
Inc.(Æ)(Ð)
4,800
7
Alector
,
Inc.(Æ)(Ñ)
10,069
173
Alkermes
PLC(Æ)(Ð)
7,600
155
Allogene
Therapeutics,
Inc.(Æ)(Ñ)
5,831
151
Allscripts
Healthcare
Solutions,
Inc.(Æ)
56,462
555
AMAG
Pharmaceuticals,
Inc.(Æ)(Ð)
9,500
116
Amedisys
,
Inc.(Æ)
537
90
Amicus
Therapeutics,
Inc.(Æ)
25,206
246
AMN
Healthcare
Services,
Inc.(Æ)
1,207
75
AnaptysBio
,
Inc.(Æ)
3,825
62
AngioDynamics
,
Inc.(Æ)
4,007
64
ANI
Pharmaceuticals,
Inc.(Æ)
12,274
757
Applied
Genetic
Technologies
Corp.(Æ)(Ð)
3,589
16
Aptinyx
,
Inc.(Æ)
2,500
9
Arcus
Biosciences,
Inc.(Æ)
900
9
Arena
Pharmaceuticals,
Inc.(Æ)
852
39
ArQule
,
Inc.(Æ)
5,906
118
Arrowhead
Pharmaceuticals,
Inc.(Æ)(Ñ)
2,149
136
Assertio
Therapeutics,
Inc.(Æ)
31,430
39
Atara
Biotherapeutics
,
Inc.(Æ)
3,941
65
Audentes
Therapeutics,
Inc.(Æ)
3,565
213
BioCryst
Pharmaceuticals,
Inc.(Æ)(Ð)
17,500
60
Biohaven
Pharmaceutical
Holding
Co.,
Ltd.
(Æ)
3,676
200
BioLife
Solutions,
Inc.(Æ)(Ñ)
55,973
906
BioSpecifics
Technologies
Corp.(Æ)
6,971
397
BioTelemetry
,
Inc.(Æ)
27,511
1,274
Blueprint
Medicines
Corp.(Æ)
3,729
299
Brookdale
Senior
Living,
Inc.
Class
A(Æ)
11,100
81
Cantel
Medical
Corp.
2,877
204
Castlight
Health,
Inc.
Class
B(Æ)
9,200
12
Cellular
Biomedicine
Group,
Inc.(Æ)
3,907
63
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Chemed
Corp.
733
322
Chimerix
,
Inc.(Æ)(Ð)
9,000
18
Cidara
Therapeutics,
Inc.(Æ)(Ð)
1,632
6
Coherus
Biosciences,
Inc.(Æ)(Ð)
1,200
22
Computer
Programs
&
Systems,
Inc.
3,050
81
Concert
Pharmaceuticals,
Inc.(Æ)(Ð)
3,200
30
CONMED
Corp.
3,572
399
Corbus
Pharmaceuticals
Holdings,
Inc.(Æ)(Ñ)
11,656
64
CorVel
Corp.(Æ)
3,998
349
Cross
Country
Healthcare,
Inc.(Æ)
2,100
24
Cutera
,
Inc.(Æ)
830
30
Cyclerion
Therapeutics,
Inc.(Æ)
2,800
8
Cytokinetics,
Inc.(Æ)(Ð)
510
5
CytomX
Therapeutics,
Inc.(Æ)
1,605
13
Denali
Therapeutics,
Inc.(Æ)(Ñ)
10,890
190
Eagle
Pharmaceuticals,
Inc.(Æ)
3,946
237
Eidos
Therapeutics,
Inc.(Æ)(Ñ)
1,486
85
Enanta
Pharmaceuticals,
Inc.(Æ)
4,554
281
Encompass
Health
Corp.(Æ)
3,818
264
Endo
International
PLC(Æ)
6,700
31
Endologix
,
Inc.(Æ)
2,500
4
Ensign
Group,
Inc.
(The)
5,269
239
Epizyme
,
Inc.(Æ)
5,975
147
Esperion
Therapeutics,
Inc.(Æ)(Ñ)
4,013
239
Exact
Sciences
Corp.(Æ)
713
66
Fate
Therapeutics,
Inc.(Æ)
13,025
255
FibroGen
,
Inc.(Æ)
4,252
182
Five
Prime
Therapeutics,
Inc.(Æ)
5,991
27
Fluidigm
Corp.(Æ)(Ð)
10,848
38
Global
Blood
Therapeutics,
Inc.(Æ)
4,941
393
Globus
Medical,
Inc.
Class
A(Æ)
2,110
124
Halozyme
Therapeutics,
Inc.(Æ)
5,577
99
Heron
Therapeutics,
Inc.(Æ)
8,917
210
Heska
Corp.(Æ)(Ñ)
9,882
948
Homology
Medicines,
Inc.(Æ)
4,492
93
Immunomedics
,
Inc.(Æ)
10,847
230
Infinity
Pharmaceuticals,
Inc.(Æ)
1,300
1
Insmed
,
Inc.(Æ)
3,519
84
Integer
Holdings
Corp.(Æ)
4,591
369
Intercept
Pharmaceuticals,
Inc.(Æ)
1,188
147
Intra-Cellular
Therapies,
Inc.
Class
A(Æ)
1,400
48
Intrexon
Corp.(Æ)
3,900
21
Invacare
Corp.
15,939
144
Invitae
Corp.(Æ)(Ñ)
11,966
193
Iovance
Biotherapeutics
,
Inc.(Æ)
7,621
211
iRadimed
Corp.(Æ)
32,935
770
Ironwood
Pharmaceuticals,
Inc.
Class
A(Æ)
11,182
149
Jazz
Pharmaceuticals
PLC(Æ)
1,180
176
Kodiak
Sciences,
Inc.(Æ)
3,322
239
Lantheus
Holdings,
Inc.(Æ)
44,920
921
LeMaitre
Vascular,
Inc.
42,489
1,528
Ligand
Pharmaceuticals,
Inc.
Class
B(Æ)(Ñ)
970
101
LivaNova
PLC(Æ)
1,210
91
Magellan
Health,
Inc.(Æ)
2,240
175
Medicines
Co.
(The)(Æ)(Ñ)
2,181
185
Medpace
Holdings,
Inc.(Æ)
5,609
471
MEI
Pharma,
Inc.(Æ)(Ð)
3,978
10
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
MeiraGTx
Holdings
PLC(Æ)
3,010
60
Menlo
Therapeutics,
Inc.(Æ)
3,000
14
Meridian
Bioscience,
Inc.
10,727
105
Minerva
Neurosciences,
Inc.(Æ)(Ð)
2,200
16
Mirati
Therapeutics,
Inc.(Æ)
2,346
302
Molina
Healthcare,
Inc.(Æ)
1,560
212
Momenta
Pharmaceuticals,
Inc.(Æ)
7,670
151
Myriad
Genetics,
Inc.(Æ)
6,308
172
Natera
,
Inc.(Æ)
4,966
167
Neogen
Corp.(Æ)
6,954
454
NeoGenomics
,
Inc.(Æ)
26,127
764
Neos
Therapeutics,
Inc.(Æ)
21,228
32
Neuronetics
,
Inc.(Æ)
2,738
12
NextGen
Healthcare,
Inc.(Æ)
1,300
21
Omeros
Corp.(Æ)(Ð)
800
11
OraSure
Technologies,
Inc.(Æ)(Ð)
8,400
67
Orthofix
Medical,
Inc.(Æ)
2,580
119
Owens
&
Minor,
Inc.
8,500
44
Patterson
Cos.,
Inc.
10,233
210
PDL
BioPharma
,
Inc.(Æ)
58,096
189
Pennant
Group,
Inc.
(The)(Æ)
15,492
512
Perrigo
Co.
PLC(Ð)(Û)
3,430
177
Portola
Pharmaceuticals,
Inc.(Æ)
2,113
50
PRA
Health
Sciences,
Inc.(Æ)
7,102
789
Prestige
Brands
Holdings,
Inc.(Æ)(Ñ)
16,560
671
Principia
Biopharma,
Inc.(Æ)
3,369
185
Prothena
Corp.
PLC(Æ)(Ð)
3,700
59
Providence
Service
Corp.
(The)(Æ)
906
54
PTC
Therapeutics,
Inc.(Æ)
4,869
234
Ra
Pharmaceuticals,
Inc.(Æ)
2,193
103
Radius
Health,
Inc.(Æ)
603
12
RadNet
,
Inc.(Æ)
56,472
1,146
Reata
Pharmaceuticals,
Inc.
Class
A(Æ)
313
64
Repligen
Corp.(Æ)
8,762
810
Retrophin
,
Inc.(Æ)(Ð)
4,100
58
Sangamo
BioSciences
,
Inc.(Æ)
7,342
61
SeaSpine
Holdings
Corp.(Æ)
17,884
215
Seres
Therapeutics,
Inc.(Æ)(Ð)
4,400
15
Spectrum
Pharmaceuticals,
Inc.(Æ)
12,455
45
Spero
Therapeutics,
Inc.(Æ)
242
2
Surmodics
,
Inc.(Æ)
550
23
Sutro
Biopharma,
Inc.(Æ)
1,000
11
Synthorx
,
Inc.(Æ)
1,026
72
Tabula
Rasa
HealthCare,
Inc.(Æ)(Ñ)
25,963
1,264
Tactile
Systems
Technology,
Inc.(Æ)(Ñ)
10,971
741
Triple-S
Management
Corp.
Class
B(Æ)
1,686
31
Ultragenyx
Pharmaceutical,
Inc.(Æ)
5,416
231
United
Therapeutics
Corp.(Æ)
580
51
UNITY
Biotechnology,
Inc.(Æ)
3,300
24
US
Physical
Therapy,
Inc.
1,544
177
Utah
Medical
Products,
Inc.
14,592
1,575
Vanda
Pharmaceuticals,
Inc.(Æ)
7,230
119
Varex
Imaging
Corp.(Æ)
15,227
454
Veracyte
,
Inc.(Æ)
3,129
87
Xencor
,
Inc.(Æ)
2,624
90
32,875
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Materials
and
Processing
-
7.1%
AdvanSix
,
Inc.(Æ)
1,700
34
Allegheny
Technologies,
Inc.(Æ)
12,054
249
American
Vanguard
Corp.
20,959
408
Apogee
Enterprises,
Inc.
2,370
77
Arch
Coal,
Inc.
Class
A(Ð)
4,277
307
Armstrong
Flooring,
Inc.(Æ)(Û)
6,700
29
Armstrong
World
Industries,
Inc.
5,999
564
Ashland
Global
Holdings,
Inc.(Ð)
3,520
269
Aspen
Aerogels,
Inc.(Æ)
30,618
238
Beacon
Roofing
Supply,
Inc.(Æ)
3,566
114
Belden,
Inc.
3,638
200
Boise
Cascade
Co.(Ð)
3,870
141
Builders
FirstSource
,
Inc.(Æ)
3,132
80
Cabot
Corp.(Ð)
550
26
Cabot
Microelectronics
Corp.
3,278
473
Caesarstone
,
Ltd.
18,565
280
Carpenter
Technology
Corp.
5,228
260
CF
Industries
Holdings,
Inc.(Ð)
1,481
71
Cleveland-Cliffs,
Inc.(Æ)(Ñ)
14,058
118
Comfort
Systems
USA,
Inc.
27,043
1,348
Commercial
Metals
Co.
9,954
222
Culp,
Inc.
1,100
15
Eagle
Materials,
Inc.
7,404
671
Element
Solutions,
Inc.(Æ)
95,915
1,120
Haynes
International,
Inc.
7,011
251
Huntsman
Corp.
8,100
196
Insteel
Industries,
Inc.
12,434
267
Intrepid
Potash,
Inc.(Æ)
79,036
214
Kraton
Corp.(Æ)(Ð)
2,300
58
Landec
Corp.(Æ)
63,793
721
LB
Foster
Co.
Class
A(Æ)
400
8
Lennox
International,
Inc.(Ð)
1,193
291
LiqTech
International,
Inc.(Æ)(Ñ)
72,693
425
Louisiana-Pacific
Corp.
3,365
100
Masonite
International
Corp.(Æ)
2,940
212
Neenah
Paper,
Inc.
2,547
179
Novagold
Resources,
Inc.(Æ)
23,754
213
O-I
Glass,
Inc.
Class
I(Ð)
14,300
171
Olympic
Steel,
Inc.
824
15
Omega
Flex,
Inc.
5,859
629
PGT
Innovations,
Inc.(Æ)
15,251
227
PH
Glatfelter
Co.(Ð)
2,600
48
Quaker
Chemical
Corp.
3,361
553
RBC
Bearings,
Inc.(Æ)
950
150
Resideo
Technologies,
Inc.(Æ)(Ð)
6,800
81
Schnitzer
Steel
Industries,
Inc.
Class
A
5,300
115
Schweitzer-Mauduit
International,
Inc.
24,658
1,034
Sensient
Technologies
Corp.
2,463
163
Silgan
Holdings,
Inc.(Ð)
5,404
168
SiteOne
Landscape
Supply,
Inc.(Æ)(Ñ)
5,412
491
Stepan
Co.
2,300
236
TimkenSteel
Corp.(Æ)
5,100
40
Trex
Co.,
Inc.(Æ)
1,072
96
Trinseo
SA
4,986
186
Unifi,
Inc.(Æ)(Ð)
1,319
33
Universal
Stainless
&
Alloy
Products,
Inc.(Æ)
24,264
362
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
US
Concrete,
Inc.(Æ)
6,907
288
Valvoline,
Inc.(Ð)
13,200
283
Veritiv
Corp.(Æ)
900
18
Verso
Corp.
Class
A(Æ)(Ð)
900
16
Worthington
Industries,
Inc.
4,587
193
WR
Grace
&
Co.(Ð)
1,010
71
16,116
Producer
Durables
-
17.3%
ACCO
Brands
Corp.
20,097
188
Adient
PLC(Æ)(Ð)
2,200
47
AECOM(Æ)
5,370
232
AGCO
Corp.(Ð)
4,250
328
Air
Transport
Services
Group,
Inc.(Æ)
4,770
112
Allegiant
Travel
Co.
Class
A
412
72
Allied
Motion
Technologies,
Inc.
22,279
1,080
Allison
Transmission
Holdings,
Inc.
Class
A
1,200
58
Applied
Industrial
Technologies,
Inc.
1,587
106
ArcBest
Corp.
6,745
186
Arcosa
,
Inc.
39,118
1,741
Ardmore
Shipping
Corp.(Æ)
61,516
557
Argan
,
Inc.
12,102
486
ASGN,
Inc.(Æ)
3,307
235
Astec
Industries,
Inc.
3,110
131
Astronics
Corp.(Æ)
3,390
95
AstroNova
,
Inc.
780
11
Axon
Enterprise,
Inc.(Æ)(Ñ)
6,877
504
Babcock
&
Wilcox
Co.
(The)
Class
W(Æ)
18,158
1,126
Badger
Meter,
Inc.
3,637
236
Barnes
Group,
Inc.
1,439
89
Barrett
Business
Services,
Inc.
830
75
Brady
Corp.
Class
A
788
45
Briggs
&
Stratton
Corp.(Ð)
7,100
47
Brink's
Co.
(The)
7,776
705
Commercial
Vehicle
Group,
Inc.(Æ)
2,637
17
Concrete
Pumping
Holdings,
Inc.(Æ)
22,708
124
Covenant
Transportation
Group,
Inc.
Class
A(Æ)
34,931
451
CPI
Aerostructures
,
Inc.(Æ)
37,151
250
CRA
International,
Inc.
13,523
737
Crane
Co.
370
32
Dorian
LPG,
Ltd.(Æ)
1,400
22
Echo
Global
Logistics,
Inc.(Æ)
6,200
128
EMCOR
Group,
Inc.
3,190
275
Euronav
NV
19,156
240
Evo
Payments,
Inc.
Class
A(Æ)
23,193
613
Exponent,
Inc.
3,547
245
Fluor
Corp.(Ð)
1,997
38
frontdoor
,
Inc.(Æ)(Û)
28,435
1,348
FTI
Consulting,
Inc.(Æ)
1,155
128
GATX
Corp.
2,593
215
Generac
Holdings,
Inc.(Æ)
2,741
276
Great
Lakes
Dredge
&
Dock
Corp.(Æ)
39,806
451
Greenbrier
Cos.,
Inc.
3,410
111
Hackett
Group,
Inc.
(The)
21,468
346
Harsco
Corp.(Æ)
51,645
1,187
Hawaiian
Holdings,
Inc.
6,035
177
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Herman
Miller,
Inc.
1,985
83
Hill
International,
Inc.(Æ)
39,478
125
HNI
Corp.
9,213
345
Hub
Group,
Inc.
Class
A(Æ)
6,882
353
Hudson,
Ltd.
Class
A(Æ)
18,436
283
Hyster
-Yale
Materials
Handling,
Inc.
2,030
120
ICF
International,
Inc.
11,911
1,090
InnerWorkings
,
Inc.(Æ)
1,000
6
Insperity
,
Inc.(Û)
2,200
189
KBR,
Inc.
31,592
964
Kennametal,
Inc.
2,459
91
Kforce
,
Inc.
1,430
57
Kimball
International,
Inc.
Class
B
37,295
771
Korn
&
Ferry
International(Û)
6,149
261
Kratos
Defense
&
Security
Solutions,
Inc.(Æ)
32,560
586
Landstar
System,
Inc.
1,930
220
Lincoln
Electric
Holdings,
Inc.
1,470
142
Liquidity
Services,
Inc.(Æ)
33,379
199
Littelfuse
,
Inc.
1,143
219
Manitowoc
Co.,
Inc.
(The)(Æ)
4,800
84
ManpowerGroup
,
Inc.(Ð)(Û)
3,330
323
Marten
Transport,
Ltd.
13,035
280
MasTec
,
Inc.(Æ)
8,427
541
Matson,
Inc.
1,550
63
MAXIMUS,
Inc.
13,035
970
Mesa
Laboratories,
Inc.(Ñ)
6,076
1,514
Methode
Electronics,
Inc.
2,700
106
Modine
Manufacturing
Co.(Æ)
4,100
32
MSC
Industrial
Direct
Co.,
Inc.
Class
A
2,912
229
MYR
Group,
Inc.(Æ)
740
24
Navistar
International
Corp.(Æ)
3,060
89
Orion
Group
Holdings,
Inc.(Æ)
86,151
447
Park-Ohio
Holdings
Corp.
300
10
Pentair
PLC
4,780
219
Pitney
Bowes,
Inc.(Û)
31,337
126
Radiant
Logistics,
Inc.(Æ)
35,391
197
Rollins,
Inc.(Ð)
650
22
RR
Donnelley
&
Sons
Co.(Ð)
15,600
62
Ryder
System,
Inc.
6,893
374
Saia,
Inc.(Æ)
3,318
309
Schneider
National,
Inc.
Class
B
3,500
76
Scorpio
Tankers,
Inc.
16,498
649
SkyWest,
Inc.
14,619
945
Spirit
AeroSystems
Holdings,
Inc.
Class
A
1,670
122
Spirit
Airlines,
Inc.(Æ)
8,950
361
SPX
Corp.(Æ)
370
19
Standex
International
Corp.
2,538
201
StealthGas
,
Inc.(Æ)
113,152
388
Steelcase,
Inc.
Class
A
32,277
660
Sterling
Construction
Co.,
Inc.(Æ)
4,200
59
Sykes
Enterprises,
Inc.(Æ)
7,476
277
Teekay
Tankers,
Ltd.
Class
A(Æ)
17,050
409
Tennant
Co.
11,700
912
Terex
Corp.
5,260
157
Tetra
Tech,
Inc.
5,904
509
Titan
International,
Inc.
5,500
20
TopBuild
Corp.(Æ)
2,770
286
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
TreeHouse
Foods,
Inc.(Æ)
16,026
777
TriNet
Group,
Inc.(Æ)
1,137
64
TrueBlue
,
Inc.(Æ)(Û)
12,714
306
Tutor
Perini
Corp.(Æ)
29,554
380
Ultralife
Corp.(Æ)
65,486
484
UniFirst
Corp.
621
125
Universal
Truckload
Services,
Inc.
11,926
226
US
Xpress
Enterprises,
Inc.
Class
A(Æ)
7,000
35
USA
Truck,
Inc.(Æ)
20,422
152
Vectrus
,
Inc.(Æ)
9,453
485
Wabash
National
Corp.
2,300
34
Watts
Water
Technologies,
Inc.
Class
A
1,947
194
Welbilt
,
Inc.(Æ)
15,113
236
Werner
Enterprises,
Inc.
3,074
112
WESCO
International,
Inc.(Æ)(Ð)
3,150
187
WNS
Holdings,
Ltd.
-
ADR(Æ)
17,332
1,146
XPO
Logistics,
Inc.(Æ)(Ð)
2,085
166
YRC
Worldwide,
Inc.(Æ)(Ñ)
90,335
230
39,417
Technology
-
11.2%
3D
Systems
Corp.(Æ)(Ð)
4,300
38
Adesto
Technologies
Corp.(Æ)(Ñ)
30,416
259
ADTRAN,
Inc.
6,300
62
Agilysys
,
Inc.(Æ)
500
13
Allot
Communications,
Ltd.(Æ)
31,931
271
Alpha
&
Omega
Semiconductor,
Ltd.(Æ)
25,418
346
American
Software,
Inc.
Class
A
1,000
15
Anixter
International,
Inc.(Æ)
1,942
179
Appfolio
,
Inc.
Class
A(Æ)
2,703
297
Arlo
Technologies,
Inc.(Æ)(Ð)
19,900
84
Arrow
Electronics,
Inc.(Æ)(Ð)
3,610
306
Asure
Software,
Inc.(Æ)
14,875
122
Avaya
Holdings
Corp.(Æ)
12,149
164
Avid
Technology,
Inc.(Æ)(Ð)
4,200
36
Avnet,
Inc.(Û)
5,930
252
AVX
Corp.
3,822
78
Bel
Fuse,
Inc.
Class
B
2,045
42
Benchmark
Electronics,
Inc.
13,489
463
Blackbaud
,
Inc.
1,126
90
Bottomline
Technologies,
Inc.(Æ)(Û)
1,780
95
Box,
Inc.
Class
A(Æ)
24,048
404
Calix,
Inc.(Æ)
6,600
53
Cars.com,
Inc.(Æ)
18,136
222
Casa
Systems,
Inc.(Æ)
6,261
26
Cerence
,
Inc.(Æ)
164
4
ChannelAdvisor
Corp.(Æ)
1,500
14
Cirrus
Logic,
Inc.(Æ)(Û)
8,044
663
Coherent,
Inc.(Æ)
1,397
232
CommVault
Systems,
Inc.(Æ)
7,495
335
comScore,
Inc.(Æ)(Ð)
9,300
46
Conduent
,
Inc.(Æ)
21,089
131
DASAN
Zhone
Solutions,
Inc.(Æ)
1,900
17
Diebold
Nixdorf,
Inc.(Æ)
70,460
744
Donnelley
Financial
Solutions,
Inc.(Æ)(Ð)
6,400
67
Dropbox,
Inc.
Class
A(Æ)(Ð)
6,772
121
DSP
Group,
Inc.(Æ)(Û)
10,652
167
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
EMCORE
Corp.(Æ)(Û)
3,700
11
Endava
PLC
-
ADR(Æ)
7,670
357
F5
Networks,
Inc.(Æ)
360
50
Fabrinet
(Æ)
1,365
89
FireEye,
Inc.(Æ)
3,670
61
Glu
Mobile,
Inc.(Æ)(Ð)
3,400
21
Harmonic,
Inc.(Æ)(Ð)
4,280
33
HC2
Holdings,
Inc.(Æ)
2,200
5
Infinera
Corp.(Æ)(Ð)
12,679
101
Insight
Enterprises,
Inc.(Æ)
2,603
183
InterDigital
,
Inc.
1,397
76
Intevac,
Inc.(Æ)
300
2
iRobot
Corp.(Æ)(Ñ)
1,986
101
Jabil
Circuit,
Inc.
5,830
241
Juniper
Networks,
Inc.(Û)
7,758
191
Kemet
Corp.
3,015
82
Kimball
Electronics,
Inc.(Æ)
42,933
753
Liberty
Latin
America,
Ltd.
Class
C(Æ)(Ð)
8,400
163
LiveRamp
Holdings,
Inc.(Æ)
1,715
82
LogMeIn,
Inc.
2,594
222
ManTech
International
Corp.
Class
A
1,829
146
Maxar
Technologies,
Inc.
17,613
276
Meet
Group,
Inc.(Æ)
6,900
35
Mercury
Systems,
Inc.(Æ)
4,881
337
MicroStrategy
,
Inc.
Class
A(Æ)
3,952
563
Mimecast,
Ltd.(Æ)
11,836
513
MiX
Telematics,
Ltd.
-
ADR
7,973
103
MobileIron
,
Inc.(Æ)
17,400
85
Model
N,
Inc.(Æ)
14,114
495
NAPCO
Security
Technologies,
Inc.(Æ)
42,882
1,261
NeoPhotonics
Corp.(Æ)
26,510
234
NETGEAR,
Inc.(Æ)(Ð)
8,341
204
NetScout
Systems,
Inc.(Æ)
15,218
367
Nuance
Communications,
Inc.(Æ)(Ð)
11,100
198
NVE
Corp.
10,343
738
OneSpan
,
Inc.(Æ)
41,054
703
Ooma
,
Inc.(Æ)
21,657
286
PC
Connection,
Inc.
1,489
74
Pegasystems
,
Inc.
12,561
1,000
Perspecta
,
Inc.
31,966
845
Pixelworks
,
Inc.(Æ)
8,000
31
Plantronics,
Inc.
10,726
293
PlayAGS
,
Inc.(Æ)
4,500
55
Plexus
Corp.(Æ)
1,580
122
Power
Integrations,
Inc.
2,262
224
Progress
Software
Corp.
2,170
90
QAD,
Inc.
Class
A
22,849
1,164
Qualys
,
Inc.(Æ)(Ñ)
8,669
723
Ribbon
Communications,
Inc.(Æ)
6,300
20
SailPoint
Technologies
Holding,
Inc.(Æ)
2,081
49
Sanmina
Corp.(Æ)
2,895
99
ScanSource
,
Inc.(Æ)
3,497
129
Seachange
International,
Inc.(Æ)
3,015
13
Silicon
Laboratories,
Inc.(Æ)
4,332
502
Simulations
Plus,
Inc.
24,993
727
Sitime
Corp.(Æ)
9,517
243
Sonos
,
Inc.(Æ)(Ð)
5,763
90
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
35
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Stratasys
,
Ltd.(Æ)
2,500
51
Synaptics
,
Inc.(Æ)(Ð)
4,342
286
Synchronoss
Technologies,
Inc.(Æ)(Ð)
9,600
46
SYNNEX
Corp.
2,212
285
Tech
Data
Corp.(Æ)
2,037
293
TeleNav
,
Inc.(Æ)(Ð)
6,200
30
Tenable
Holdings,
Inc.(Æ)
1,382
33
TrueCar
,
Inc.(Æ)
22,500
107
Unisys
Corp.(Æ)
31,743
376
Universal
Display
Corp.
620
128
Varonis
Systems,
Inc.(Æ)(Ð)
550
43
Veeco
Instruments,
Inc.(Æ)(Ð)
7,500
110
Vishay
Intertechnology
,
Inc.
5,859
125
Workiva
,
Inc.(Æ)
14,261
599
Yelp,
Inc.
Class
A(Æ)
1,740
61
Zix
Corp.(Æ)
95,703
649
25,541
Utilities
-
5.2%
Allete
,
Inc.
5,368
436
American
States
Water
Co.
3,367
292
Atlantic
Power
Corp.(Æ)
50,729
118
ATN
International,
Inc.(Æ)
1,210
67
Avista
Corp.
13,534
650
Black
Hills
Corp.
3,200
251
Bonanza
Creek
Energy,
Inc.(Æ)
1,545
36
Brigham
Minerals,
Inc.
Class
A
24,658
529
Chesapeake
Utilities
Corp.
830
80
Clearway
Energy,
Inc.(Æ)
2,565
49
Cogent
Communications
Holdings,
Inc.
9,913
653
Earthstone
Energy,
Inc.
Class
A(Æ)
36,466
231
El
Paso
Electric
Co.
1,438
98
GCI
Liberty,
Inc.
Class
A(Æ)
8,409
596
Gogo
,
Inc.(Æ)(Ð)
8,874
57
HighPoint
Resources
Corp.(Æ)
413,136
698
j2
Global,
Inc.
2,104
197
Mammoth
Energy
Services,
Inc.
50,133
110
MDU
Resources
Group,
Inc.
51,249
1,523
MGE
Energy,
Inc.
908
72
Montage
Resources
Corp.(Æ)
12,560
100
New
Jersey
Resources
Corp.
6,342
283
Northwest
Natural
Holding
Co.
1,840
136
NorthWestern
Corp.
5,545
397
NRG
Energy,
Inc.(Ð)
6,470
257
ONE
Gas,
Inc.(Û)
5,039
471
Orbcomm
,
Inc.(Æ)
12,083
51
Pinnacle
West
Capital
Corp.(Ð)
3,040
273
Plains
GP
Holdings,
LP
Class
A(Æ)
1,100
21
PNM
Resources,
Inc.
1,671
85
Portland
General
Electric
Co.
13,719
765
Rosehill
Resources,
Inc.
Class
A(Æ)
25,142
32
South
Jersey
Industries,
Inc.
20,254
668
Southwest
Gas
Holdings,
Inc.
5,583
425
Spire,
Inc.
2,162
180
Spok
Holdings,
Inc.
4,328
53
Talos
Energy,
Inc.(Æ)
2,500
75
Unitil
Corp.
2,154
133
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Vistra
Energy
Corp.
29,221
672
11,820
Total
Common
Stocks
(cost
$205,184)
229,072
Short-Term
Investments
-
3.7%
U.S.
Cash
Management
Fund(@)
8,454,252
(∞)
8,457
Total
Short-Term
Investments
(cost
$8,457)
8,457
Other
Securities
-
6.8%
U.S.
Cash
Collateral
Fund(×)(@)
15,524,476
(∞)
15,524
Total
Other
Securities
(cost
$15,524)
15,524
Total
Investments
111.0%
(identified
cost
$229,165)
253,053
Securities
Sold
Short
-
(4.3)%
Consumer
Discretionary
-
(0.9)%
1-800-Flowers.com,
Inc.
Class
A(Æ)
(3,600)
(52)
At
Home
Group,
Inc.(Æ)
(4,033)
(22)
Buckle,
Inc.
(The)
(1,100)
(30)
Caleres
,
Inc.
(2,000)
(48)
Carvana
Co.(Æ)
(190)
(17)
Century
Communities,
Inc.(Æ)
(3,215)
(88)
Dorman
Products,
Inc.(Æ)
(660)
(50)
Fox
Factory
Holding
Corp.(Æ)
(1,237)
(86)
Gap,
Inc.
(The)
(2,840)
(50)
G-III
Apparel
Group,
Ltd.(Æ)
(4,130)
(138)
Gray
Television,
Inc.(Æ)
(3,400)
(73)
Hanesbrands,
Inc.
(417)
(6)
Harley-Davidson,
Inc.
(1,260)
(47)
Leggett
&
Platt,
Inc.
(3,670)
(187)
LGI
Homes,
Inc.(Æ)
(1,090)
(77)
Lifetime
Brands,
Inc.
(400)
(3)
Lovesac
Co.
(The)(Æ)
(400)
(6)
Marriott
Vacations
Worldwide
Corp.
(770)
(99)
Michaels
Cos.,
Inc.
(The)(Æ)
(10,400)
(84)
Monro
Muffler
Brake,
Inc.
(1,020)
(80)
Movado
Group,
Inc.
(4,600)
(100)
Party
City
Holdco,
Inc.(Æ)
(32,546)
(76)
Penn
National
Gaming,
Inc.(Æ)
(700)
(18)
PetIQ
,
Inc.(Æ)
(2,000)
(50)
PriceSmart
,
Inc.
(1,632)
(116)
SEACOR
Marine
Holdings,
Inc.(Æ)
(400)
(6)
Sinclair
Broadcast
Group,
Inc.
Class
A
(682)
(23)
Strategic
Education,
Inc.(Æ)
(590)
(94)
Tenneco,
Inc.
Class
A
(2,800)
(37)
Thor
Industries,
Inc.
(2,760)
(205)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
36
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Vince
Holding
Corp.(Æ)
(300)
(5)
Winnebago
Industries,
Inc.
(2,530)
(134)
(2,107)
Consumer
Staples
-
(0.1)%
Energizer
Holdings,
Inc.
(3,690)
(185)
Limoneira
Co.
(1,100)
(21)
Simply
Good
Foods
Co.
(The)(Æ)
(2,573)
(73)
(279)
Energy
-
(0.3)%
Abraxas
Petroleum
Corp.(Æ)
(47,995)
(17)
Advanced
Emissions
Solutions,
Inc.
(3,622)
(38)
Antero
Resources
Corp.(Æ)
(17,200)
(49)
Callon
Petroleum
Co.(Æ)
(10,200)
(49)
Clean
Energy
Fuels
Corp.(Æ)
(3,483)
(8)
Contango
Oil
&
Gas
Co.(Æ)
(700)
(3)
Diamond
Offshore
Drilling,
Inc.(Æ)
(4,400)
(32)
Gulfport
Energy
Corp.(Æ)
(26,421)
(80)
Laredo
Petroleum,
Inc.(Æ)
(16,500)
(47)
Nine
Energy
Service,
Inc.(Æ)
(5,200)
(41)
Northern
Oil
and
Gas,
Inc.(Æ)
(3,000)
(7)
Oil
States
International,
Inc.(Æ)
(1,000)
(16)
Profire
Energy,
Inc.(Æ)
(1,000)
(1)
ProPetro
Holding
Corp.(Æ)
(6,100)
(69)
Range
Resources
Corp.
(13,900)
(67)
Ring
Energy,
Inc.(Æ)
(9,000)
(24)
Select
Energy
Services,
Inc.
Class
A(Æ)
(2,800)
(26)
Solaris
Oilfield
Infrastructure,
Inc.
Class
A
(4,942)
(69)
TerraForm
Power,
Inc.
Class
A
(1,647)
(25)
Unit
Corp.(Æ)
(8,041)
(6)
US
Silica
Holdings,
Inc.
(5,300)
(33)
US
Well
Services,
Inc.(Æ)
(1,100)
(2)
(709)
Financial
Services
-
(1.1)%
AGNC
Investment
Corp.(Æ)
(10,100)
(179)
Allegiance
Bancshares,
Inc.
(1,100)
(41)
Apollo
Commercial
Real
Estate
Finance,
Inc.(ö)
(3,300)
(60)
Arbor
Realty
Trust,
Inc.(ö)
(10,400)
(149)
Cannae
Holdings,
Inc.(Æ)
(2,159)
(80)
CBL
&
Associates
Properties,
Inc.(ö)
(27,900)
(29)
Cherry
Hill
Mortgage
Investment
Corp.(ö)
(2,460)
(36)
Chimera
Investment
Corp.(ö)
(7,700)
(158)
Colony
Credit
Real
Estate,
Inc.(ö)
(1,200)
(16)
eHealth,
Inc.(Æ)
(190)
(18)
Encore
Capital
Group,
Inc.(Æ)
(1,401)
(50)
First
Financial
Bancorp
(4,300)
(109)
Granite
Point
Mortgage
Trust,
Inc.(ö)
(3,300)
(61)
Hannon
Armstrong
Sustainable
Infrastructure
Capital,
Inc.(ö)
(2,320)
(75)
Helios
Technologies,
Inc.(Æ)
(750)
(35)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
I3
Verticals,
Inc.
Class
A(Æ)
(646)
(18)
Jernigan
Capital,
Inc.(ö)
(800)
(15)
Legacy
Housing
Corp.(Æ)
(300)
(5)
MBIA,
Inc.(Æ)
(6,200)
(58)
Moelis
&
Co.
Class
A
(1,100)
(35)
New
Residential
Investment
Corp.(ö)
(10,900)
(176)
New
York
Mortgage
Trust,
Inc.(ö)
(15,900)
(99)
Newmark
Group,
Inc.
Class
A
(6,500)
(87)
Ocwen
Financial
Corp.(Æ)
(2,825)
(4)
Office
Properties
Income
Trust(ö)
(2,570)
(83)
Pebblebrook
Hotel
Trust(ö)
(6,250)
(168)
PennyMac
Mortgage
Investment
Trust(ö)
(7,200)
(160)
Potlatch
Corp.(ö)
(3,950)
(171)
Ready
Capital
Corp.(Æ)
(1,000)
(15)
Redwood
Trust,
Inc.(ö)
(5,100)
(84)
Target
Hospitality
Corp.
Class
A(Æ)
(1,556)
(8)
Two
Harbors
Investment
Corp.(ö)
(5,100)
(75)
Veritex
Holdings,
Inc.
(2,000)
(58)
Victory
Capital
Holdings,
Inc.
Class
A
(1,000)
(21)
Virtu
Financial,
Inc.
Class
A
(4,400)
(70)
Western
Asset
Mortgage
Capital
Corp.(ö)
(954)
(10)
(2,516)
Health
Care
-
(0.6)%
Acadia
Pharmaceuticals,
Inc.(Æ)
(560)
(24)
ADMA
Biologics,
Inc.(Æ)
(3,100)
(12)
Alphatec
Holdings,
Inc.(Æ)
(1,000)
(7)
Anika
Therapeutics,
Inc.(Æ)
(740)
(38)
Arena
Pharmaceuticals,
Inc.(Æ)
(2,667)
(121)
Arrowhead
Pharmaceuticals,
Inc.(Æ)
(290)
(18)
Axonics
Modulation
Technologies,
Inc.(Æ)
(400)
(11)
BioDelivery
Sciences
International,
Inc.(Æ)
(4,900)
(31)
Bio-Rad
Laboratories,
Inc.
Class
A(Æ)
(514)
(190)
Bio-
Techne
Corp.(Æ)
(370)
(81)
Capital
Senior
Living
Corp.(Æ)
(1,600)
(5)
CareDx
,
Inc.(Æ)
(400)
(9)
CASI
Pharmaceuticals,
Inc.(Æ)
(700)
(2)
Catalent
,
Inc.(Æ)
(1,560)
(88)
Deciphera
Pharmaceuticals,
Inc.(Æ)
(190)
(12)
Emergent
BioSolutions
,
Inc.(Æ)
(1,580)
(85)
Geron
Corp.(Æ)
(12,029)
(16)
Global
Blood
Therapeutics,
Inc.(Æ)
(106)
(8)
Guardant
Health,
Inc.(Æ)
(100)
(8)
iRhythm
Technologies,
Inc.(Æ)
(500)
(34)
Kodiak
Sciences,
Inc.(Æ)
(121)
(9)
Krystal
Biotech,
Inc.(Æ)
(550)
(30)
LHC
Group,
Inc.(Æ)
(710)
(98)
Ligand
Pharmaceuticals,
Inc.
Class
B(Æ)
(1,470)
(153)
MannKind
Corp.(Æ)
(3,300)
(4)
Matinas
BioPharma
Holdings,
Inc.(Æ)
(4,500)
(10)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
37
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
NeoGenomics
,
Inc.(Æ)
(1,900)
(56)
OncoCyte
Corp.(Æ)
(4,164)
(9)
Principia
Biopharma,
Inc.(Æ)
(285)
(16)
Quanterix
Corp.(Æ)
(800)
(19)
REGENXBIO,
Inc.(Æ)
(170)
(7)
Repligen
Corp.(Æ)
(1,010)
(93)
Sientra
,
Inc.(Æ)
(1,000)
(9)
Tabula
Rasa
HealthCare,
Inc.(Æ)
(920)
(45)
Teladoc
Health,
Inc.(Æ)
(710)
(59)
ViewRay
,
Inc.(Æ)
(2,500)
(11)
(1,428)
Materials
and
Processing
-
(0.2)%
Coeur
Mining,
Inc.(Æ)
(3,100)
(25)
Cornerstone
Building
Brands,
Inc.(Æ)
(6,300)
(54)
Covia
Holdings
Corp.(Æ)
(3,600)
(7)
Griffon
Corp.
(1,800)
(37)
Hecla
Mining
Co.
(33,000)
(112)
Livent
Corp.(Æ)
(2,400)
(21)
NN,
Inc.
(3,800)
(35)
Quaker
Chemical
Corp.
(90)
(15)
Universal
Forest
Products,
Inc.
(500)
(24)
Universal
Stainless
&
Alloy
Products,
Inc.(Æ)
(1,900)
(28)
Uranium
Energy
Corp.(Æ)
(16,491)
(15)
(373)
Producer
Durables
-
(0.3)%
Altra
Industrial
Motion
Corp.
(2,940)
(106)
Aqua
Metals,
Inc.(Æ)
(2,100)
(2)
Coda
Octopus
Group,
Inc.(Æ)
(1,000)
(8)
Concrete
Pumping
Holdings,
Inc.(Æ)
(2,700)
(15)
Construction
Partners,
Inc.
Class
A(Æ)
(3,800)
(64)
DMC
Global,
Inc.(Æ)
(498)
(22)
ESCO
Technologies,
Inc.
(590)
(55)
Federal
Signal
Corp.
(800)
(26)
Iteris
,
Inc.(Æ)
(3,800)
(19)
Knight-Swift
Transportation
Holdings,
Inc.
(Æ)
(1,100)
(39)
Stericycle,
Inc.(Æ)
(1,700)
(108)
Teledyne
Technologies,
Inc.(Æ)
(240)
(83)
Willdan
Group,
Inc.(Æ)
(830)
(26)
(573)
Technology
-
(0.7)%
Adesto
Technologies
Corp.(Æ)
(1,800)
(15)
Altair
Engineering,
Inc.
Class
A(Æ)
(2,390)
(86)
Alteryx,
Inc.
Class
A(Æ)
(370)
(37)
Anterix
Inc.(Æ)
(550)
(24)
Blackline,
Inc.(Æ)
(660)
(34)
Brooks
Automation,
Inc.
(1,200)
(50)
Calyxt
,
Inc.(Æ)
(1,688)
(12)
Cohu
,
Inc.
(3,100)
(71)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
CommScope
Holding
Co.,
Inc.(Æ)
(6,040)
(86)
CTS
Corp.
(1,012)
(30)
Digimarc
Corp.(Æ)
(470)
(16)
Diodes,
Inc.(Æ)
(1,840)
(104)
Envestnet
,
Inc.(Æ)
(1,300)
(91)
FormFactor
,
Inc.(Æ)
(562)
(15)
II-VI,
Inc.(Æ)
(5,683)
(191)
Immersion
Corp.(Æ)
(9,200)
(68)
IPG
Photonics
Corp.(Æ)
(170)
(25)
Lumentum
Holdings,
Inc.
Class
E(Æ)
(494)
(39)
Match
Group,
Inc.(Æ)
(550)
(45)
MongoDB,
Inc.(Æ)
(196)
(26)
NAPCO
Security
Technologies,
Inc.(Æ)
(3,150)
(93)
Onto
Innovation,
Inc.(Æ)
(1,930)
(71)
Science
Applications
International
Corp.
(1,010)
(88)
Switch,
Inc.
Class
A
(1,800)
(27)
SYNNEX
Corp.
(154)
(20)
TTM
Technologies,
Inc.(Æ)
(6,300)
(95)
Ultra
Clean
Holdings(Æ)
(4,900)
(115)
Upland
Software,
Inc.(Æ)
(750)
(27)
Verra
Mobility
Corp.(Æ)
(2,700)
(38)
Zix
Corp.(Æ)
(8,200)
(56)
(1,695)
Utilities
-
(0.1)%
Chaparral
Energy,
Inc.
Class
A(Æ)
(9,000)
(16)
Globalstar
,
Inc.(Æ)
(10,629)
(6)
HighPoint
Resources
Corp.(Æ)
(13,700)
(23)
Montage
Resources
Corp.(Æ)
(3,600)
(29)
New
Fortress
Energy
LLC(Æ)
(1,000)
(16)
SilverBow
Resources,
Inc.(Æ)
(1,292)
(13)
(103)
Total
Securities
Sold
Short
(proceeds
$9,293)
(9,783)
Other
Assets
and
Liabilities,
Net
-
(6.7%)
(15,371
)
Net
Assets
-
100.0%
227,899
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
38
U.S.
Small
Cap
Equity
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
0.0%
JER
Investment
Trust,
Inc.
05/27/04
1,771
82.03
145
—
—
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
Russell
2000
E-Mini
Index
Futures
97
USD
8,102
03/20
97
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
97
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
$
28,764
$
—
$
—
$
—
$
28,764
12.
6
Consumer
Staples
7,084
—
—
—
7,084
3.1
Energy
8,285
—
—
—
8,285
3.
6
Financial
Services
59,170
—
—
—
59,170
2
6.0
Health
Care
32,875
—
—
—
32,875
14.
4
Materials
and
Processing
16,116
—
—
—
16,116
7.1
Producer
Durables
39,41
7
—
—
—
39,41
7
17.
3
Technology
25,541
—
—
—
25,541
1
1.2
Utilities
11,820
—
—
—
11,820
5.
2
Short-Term
Investments
—
—
—
8,457
8,457
3.7
Other
Securities
—
—
—
15,524
15,524
6.8
Total
Investments
229,07
2
—
—
23,981
253,05
3
1
11.0
Securities
Sold
Short
***
(9,783)
—
—
—
(9,783)
(
4
.
3
)
Other
Assets
and
Liabilities,
Net
(6.7)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
97
—
—
—
97
—
*
Total
Other
Financial
Instruments
**
$
97
$
—
$
—
$
—
$
97
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
39
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
***
Refer
to
Schedule
of
Investments
for
detailed
sector
breakout.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
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
December
31,
2019,
were
less
than
1%
of
net
assets.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
40
U.S.
Small
Cap
Equity
Fund
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
97
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
970
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
213
*
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
41
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
$
15,190
$
—
$
15,190
Total
Financial
and
Derivative
Assets
15,190
—
15,190
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
15,190
$
—
$
15,190
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
$
115
$
—
$
115
$
—
Citigroup
984
—
984
—
Credit
Suisse
62
—
62
—
Fidelity
4,161
—
4,161
—
JPMorgan
Chase
2,348
—
2,348
—
Merrill
Lynch
2,155
—
2,155
—
Morgan
Stanley
5,365
—
5,365
—
Total
$
15,190
$
—
$
15,190
$
—
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
42
U.S.
Small
Cap
Equity
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
Short
Sales
Securities
sold
short,
at
fair
value
$
9,783
$
—
$
9,783
Total
Financial
and
Derivative
Liabilities
9,783
—
9,783
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
9,783
$
—
$
9,783
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
$
9,783
$
—
$
9,783
$
—
Total
$
9,783
$
—
$
9,783
$
—
*
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.
U.S.
Small
Cap
Equity
Fund
43
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
229,165
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
253,053
Receivables:
Dividends
and
interest
.......................................................................................................................................................
242
Dividends
from
affiliated
funds
..........................................................................................................................................
13
Investments
sold
................................................................................................................................................................
188
From
broker(a)
...................................................................................................................................................................
205
Variation
margin
on
futures
contracts
.................................................................................................................................
97
Total
assets
.................................................................................................................................................
253,798
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
92
Fund
shares
redeemed
.......................................................................................................................................................
218
Accrued
fees
to
affiliates
....................................................................................................................................................
184
Other
accrued
expenses
.....................................................................................................................................................
98
Securities
sold
short,
at
fair
value(‡)
..............................................................................................................................................
9,783
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
15,524
Total
liabilities
.............................................................................................................................................
25,899
Net
Assets
............................................................................................................................................................
$
227,899
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
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2019
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
24,001
Shares
of
beneficial
interest
...........................................................................................................................................................
159
Additional
paid-in
capital
..............................................................................................................................................................
203,739
Net
Assets
............................................................................................................................................................
$
227,899
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
14.30
Net
assets
...............................................................................................................................................................................
$
227,898,550
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
15,941,692
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
15,190
(‡)
Proceeds
on
securities
sold
short
$
9,293
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
23,981
(a)
Receivable
from
Broker
for
Futures
$
205
(#)
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.
U.S.
Small
Cap
Equity
Fund
45
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
3,173
Dividends
from
affiliated
funds
.........................................................................................................................................
1
72
Securities
lending
income
(net)
.........................................................................................................................................
105
Total
investment
income
...............................................................................................................................................................
3,450
Expenses
Advisory
fees
....................................................................................................................................................................
2,033
Administrative
fees
...........................................................................................................................................................
113
Custodian
fees
...................................................................................................................................................................
132
Transfer
agent
fees
............................................................................................................................................................
10
Professional
fees
...............................................................................................................................................................
83
Trustees’
fees
....................................................................................................................................................................
9
Printing
fees
......................................................................................................................................................................
34
Dividends
from
securities
sold
short
.................................................................................................................................
201
Interest
expense
paid
on
securities
sold
short
...................................................................................................................
56
Miscellaneous
...................................................................................................................................................................
17
Total
expenses
...............................................................................................................................................................................
2,688
Net
investment
income
(loss)
........................................................................................................................................................
762
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
12,396
Investments
in
affiliated
funds
..........................................................................................................................................
4
Futures
contracts
..............................................................................................................................................................
970
Securities
sold
short
..........................................................................................................................................................
307
Net
realized
gain
(loss)
..................................................................................................................................................................
13,677
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
31,787
Futures
contracts
..............................................................................................................................................................
213
Securities
sold
short
..........................................................................................................................................................
(490)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
31,510
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
45,187
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
45,949
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
46
U.S.
Small
Cap
Equity
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
762
$
1,128
Net
realized
gain
(loss)
......................................................................................................................
13,677
13,506
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
31,510
(41,214)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
45,949
(26,580)
Distributions
To
shareholders
.................................................................................................................................
(4,653)
(40,853)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(4,653)
(40,853)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(17,887)
17,069
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
23,40
9
(50,364)
Net
Assets
Beginning
of
period
.................................................................................................................................
204,490
254,854
End
of
period
..........................................................................................................................................
$
227,89
9
$
204,490
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
579
$
7,812
420
$
6,505
Proceeds
from
reinvestment
of
distributions
326
4,653
3,169
40,853
Payments
for
shares
redeemed
(2,208)
(30,352)
(1,883)
(30,289)
Total
increase
(decrease)
(1,303)
$
(17,887)
1,706
$
17,069
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.
48
U.S.
Small
Cap
Equity
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
December
31,
2019
11.86
.0
5
2.6
8
2.73
(.0
7
)
(.22)
—
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)
—
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
49
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.29)
14.30
23.07
227,899
1.19
1.19
.
3
4
127
(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
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
U.S,
Small
Cap
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
172,774
Administration
fees
9,599
Transfer
agent
fees
845
Trustee
fees
907
$
184,125
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
$
50,373
$
50,920
$
4
$
—
$
8,457
$
172
$
—
U.S.
Cash
Collateral
Fund
7,689
72,397
64,562
—
—
15,524
296
$
—
$
16,689
$
122,770
$
115,482
$
4
$
—
$
23,981
$
468
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
233,455,222
$
25,684,516
$
(6,086,434)
$
19,598,082
$
—
$
4,892,231
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
1,244,022
$
3,409,094
$
—
$
11,168,845
$
29,683,414
$
—
Russell
Investment
Funds
International
Developed
Markets
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
International
Developed
Markets
Fund
51
International
Developed
Markets
Fund
Total
Return
1
Year
19
.72%
5
Years
5
.17%§
10
Years
5
.71%§
MSCI
World
ex
USA
Index
(Net)**
Total
Return
1
Year
22
.49%
5
Years
5
.42%§
10
Years
5
.32%§
International
Developed
Markets
Linked
Benchmark***
Total
Return
1
Year
22
.49%
5
Years
5
.57%§
10
Years
5
.38%§
Russell
Investment
Funds
International
Developed
Markets
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
52
International
Developed
Markets
Fund
International
Developed
Markets
Fund
(the
“Fund”)
employs
a
multi-manager
approach
whereby
Russell
Investment
Management,
LLC
(“RIM”)
manages
a
portion
of
the
Fund’s
assets
based
upon
model
portfolios
provided
by
multiple
non-
discretionary
money
managers.
The
Fund’s
money
managers
have
non-discretionary
assignments
pursuant
to
which
they
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
RIM
also
manages
the
portion
of
the
Fund's
assets
that
RIM
determines
not
to
manage
based
upon
model
portfolios
provided
by
the
Fund's
money
managers.
RIM
may
change
the
allocation
of
the
Fund’s
assets
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2019,
the
Fund
had
three
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
long
term
capital
growth.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
19.72%.
This
is
compared
to
the
Fund’s
benchmark,
the
MSCI
World
ex
USA
Index
(Net),
which
gained
22.49%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Foreign
Large
Blend
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
21.61%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
Non-U.S.
developed
markets
were
strongly
positive
over
the
period.
Europe
ex-UK
recorded
the
strongest
gains,
while
the
United
Kingdom
and
Asia-Pacific
underperformed
relative
to
the
overall
market.
In
terms
of
sector
performance
within
the
Fund’s
benchmark
over
the
fiscal
year,
information
technology
and
health
care
were
the
largest
drivers
of
positive
performance.
Energy
and
communication
services
recorded
the
smallest
gains.
In
terms
of
factor
performance,
quality
and
growth
factors
were
the
biggest
drivers
of
positive
performance
over
the
period.
Momentum
factor
also
outperformed
while
value
and
low
volatility
factors
lagged.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
The
Fund
underperformed
its
benchmark
for
the
one-year
period
ended
December
31,
2019.
Sector
allocation
detracted,
mainly
due
to
an
underweight
to
health
care
and
an
overweight
to
communication
services.
An
overweight
to
emerging
markets
further
held
back
gains.
Stock
selection
contributed
negatively
over
the
period,
particularly
within
energy,
consumer
discretionary
and
health
care
sectors.
Positive
selection
in
financials
moderated
the
loss.
The
Fund’s
money
managers
have
non-discretionary
assignments
pursuant
to
which
they
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
With
respect
to
this
portion
of
the
Fund,
RIM
manages
the
Fund’s
assets
based
upon
the
model
portfolios
provided
by
the
Fund’s
money
managers.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
certain
of
the
Fund’s
money
managers,
GQG
Partners
LLC
(“GQG”)
was
the
top
performer
during
the
period.
GQG’s
growth-oriented
strategy
was
a
tailwind.
An
underweight
to
energy
and
an
overweight
to
information
technology
were
additive.
Effective
stock
selection
in
Europe
and
the
financials
sector
also
boosted
performance.
Pzena
Investment
Management,
LLC
was
the
weakest
performer
as
the
manager’s
value
strategy
faced
headwinds.
An
overweight
to
energy
and
an
underweight
to
health
care
were
the
main
detractors.
Stock
selection
in
consumer
discretionary
and
health
care
further
detracted.
An
overweight
to
emerging
markets
also
impacted
negatively.
RIM
manages
a
multi-factor
positioning
strategy
that
aims
to
increase
the
Fund’s
value
exposure
while
moderating
volatility
exposure
and
expressing
RIM’s
total
preferred
positioning
across
multiple
factors
and
sectors.
The
strategy
uses
the
output
from
a
quantitative
model
to
purchase
a
stock
portfolio
expressing
these
views.
The
positioning
strategy’s
benchmark-relative
performance
was
negative
for
the
period,
as
the
strategy’s
overweight
to
value
detracted.
In
addition,
RIM
utilized
equity
futures
and
currency
forward
contracts
in
order
to
position
the
portfolio
to
meet
RIM’s
overall
preferred
positioning
with
respect
to
country
and
currency
exposures.
This
strategy
detracted
during
the
fiscal
year.
During
the
period,
RIM
used
index
futures
contracts
to
equitize
a
portion
of
the
Fund’s
cash.
The
decision
to
equitize
cash
was
additive,
as
the
market’s
absolute
return
was
positive
over
the
period.
Russell
Investment
Funds
International
Developed
Markets
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
International
Developed
Markets
Fund
53
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
In
March
2019,
Numeric
Investors
LLC
was
terminated
and
allocations
to
existing
money
managers
were
increased.
In
June
2019,
Janus
Capital
Management
LLC
and
Perkins
Investment
Management,
LLC
were
terminated.
Wellington
Management
Company
LLP’s
mandate
was
expanded
to
include
its
international
contrarian
value
ex-small
cap
strategy.
The
objective
of
this
change
was
to
improve
the
Fund’s
excess
return
potential.
In
December
2019,
GQG
Partners,
LLC
resigned
its
role
in
the
Fund
and
Intermede
Global
Partners
Inc.
and
Intermede
Investment
Partners
Limited
were
hired.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2019
Styles
Intermede
Global
Partners
Inc.
and
Intermede
Investment
Partners
Limited
Growth
Pzena
Investment
Management
LLC
Value
Wellington
Management
Company
LLP
Growth
*
Assumes
initial
investment
on
January
1,
2010.
**
The
MSCI
World
ex
USA
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
22
developed
market
country
indexes.
***
The
International
Developed
Markets
Linked
Benchmark
provides
a
means
to
compare
the
Fund’s
average
annual
returns
to
a
secondary
benchmark
that
takes
into
account
historical
changes
in
the
Fund’s
primary
benchmark.
The
International
Developed
Markets
Linked
Benchmark
represents
the
returns
of
the
MSCI
EAFE
Index
(net
of
tax
on
dividends
from
foreign
holdings)
through
December
31,
2010,
the
returns
of
the
Russell
Developed
ex
US
Large
Cap
Index
(net
of
tax
on
dividends
from
foreign
holdings)
from
January
1,
2011
through
December
31,
2017,
and
the
returns
of
the
MSCI
World
ex
USA
Index
(net
of
tax
on
dividends
from
foreign
holdings)
thereafter.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
International
Developed
Markets
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
54
International
Developed
Markets
Fund
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
July
1,
2019
to
December
31,
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
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,070.30
$
1,01
9
.
96
Expenses
Paid
During
Period*
$
5.43
$
5.
30
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.04%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
55
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
94.5%
Argentina
-
0.1%
YPF
SA
-
ADR(Ñ)
34,203
396
Australia
-
2.1%
AGL
Energy,
Ltd.
37,966
548
Alumina,
Ltd.
31,015
50
Aristocrat
Leisure,
Ltd.
37,100
880
ASX,
Ltd.
-
ADR
4,108
227
Australia
&
New
Zealand
Banking
Group,
Ltd.
-
ADR
18,262
316
Bendigo
&
Adelaide
Bank,
Ltd.
9,460
65
BHP
Group
PLC
23,335
551
BHP
Group,
Ltd.
-
ADR
2,672
73
Caltex
Australia,
Ltd.
4,489
107
Commonwealth
Bank
of
Australia
-
ADR
17,507
984
CSL,
Ltd.
9,174
1,781
Dexus
Property
Group(Æ)(ö)
22,617
186
GPT
Group
(The)(ö)
35,203
139
Insurance
Australia
Group,
Ltd.(Æ)
24,344
131
Macquarie
Group,
Ltd.
7,647
742
Mirvac
Group(ö)
36,328
81
National
Australia
Bank,
Ltd.
-
ADR
14,149
245
Origin
Energy,
Ltd.
30,207
180
Scentre
Group(ö)
21,507
58
South32,
Ltd.
Class
B
34,053
65
Stockland(ö)
27,491
89
Telstra
Corp.,
Ltd.
30,057
75
Treasury
Wine
Estates,
Ltd.
15,093
172
Wesfarmers,
Ltd.(Æ)
10,711
312
Westpac
Banking
Corp.
19,678
335
8,392
Austria
-
0.2%
Erste
Group
Bank
AG(Æ)
6,004
226
OMV
AB
6,014
338
Voestalpine
AG
4,135
115
679
Belgium
-
0.8%
Ageas
20,867
1,234
KBC
Groep
NV
23,298
1,757
Solvay
SA
2,210
257
3,248
Bermuda
-
0.0%
NWS
Holdings,
Ltd.
108,000
152
Brazil
-
0.3%
Banco
Bradesco
SA
-
ADR
85,726
767
Pagseguro
Digital,
Ltd.
Class
A(Æ)(Ñ)
15,193
519
1,286
Canada
-
4.0%
Algonquin
Power
&
Utilities
Corp.
62,023
877
ARC
Resources,
Ltd.(Ñ)
21,406
135
Atco,
Ltd.
Class
I
3,893
149
Bank
of
Montreal
7,077
548
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Bank
of
Nova
Scotia
(The)
11,143
629
Barrick
Gold
Corp.
61,195
1,138
BCE,
Inc.
7,410
343
Brookfield
Asset
Management,
Inc.
Class
A
6,061
350
Cameco
Corp.
Class
A
17,489
156
Canadian
Imperial
Bank
of
Commerce
3,862
321
Canadian
National
Railway
Co.
6,925
626
Canadian
Natural
Resources,
Ltd.
12,580
407
Cenovus
Energy,
Inc.
24,425
248
Dollarama,
Inc.
13,416
461
Encana
Corp.
153,823
720
First
Capital
Real
Estate
Investment
Trust(Æ)
4,475
71
Fortis,
Inc.
25,184
1,046
George
Weston,
Ltd.
1,870
148
Great-West
Lifeco
,
Inc.
15,478
396
Healthcare
Realty
Trust,
Inc.(Æ)(ö)
7,729
126
Husky
Energy,
Inc.
10,036
81
iA
Financial
Corp.,
Inc.
4,923
270
Imperial
Oil,
Ltd.
9,004
238
Kinross
Gold
Corp.(Æ)
107,441
509
Magna
International,
Inc.
Class
A
3,173
174
Manulife
Financial
Corp.
33,802
686
National
Bank
of
Canada
2,100
117
Power
Corp.
of
Canada
9,625
248
Power
Financial
Corp.
5,180
139
Quebecor,
Inc.
Class
B
3,680
94
RioCan
Real
Estate
Investment
Trust(ö)
7,625
157
Royal
Bank
of
Canada
-
GDR
13,941
1,104
Shaw
Communications,
Inc.
Class
B
5,973
121
Sun
Life
Financial,
Inc.
20,051
914
Suncor
Energy,
Inc.
11,320
371
TC
Energy
Corp.(Æ)
6,098
325
Teck
Resources,
Ltd.
Class
B
7,383
128
Toronto
Dominion
Bank
21,168
1,188
Tourmaline
Oil
Corp.
9,270
109
15,868
Cayman
Islands
-
0.1%
Trip.com
Group,
Ltd.
-
ADR(Æ)
13,082
439
China
-
2.7%
Alibaba
Group
Holding,
Ltd.
-
ADR(Æ)
22,376
4,746
China
Construction
Bank
Corp.
Class
H
544,000
471
China
Telecom
Corp.,
Ltd.
Class
H
2,160,000
887
Dongfeng
Motor
Group
Co.,
Ltd.
Class
H
962,000
906
Lenovo
Group,
Ltd.
1,796,257
1,208
Ping
An
Insurance
Group
Co.
of
China,
Ltd.
Class
H
57,466
681
Sunny
Optical
Technology
Group
Co.,
Ltd.
31,499
547
Tencent
Holdings,
Ltd.
23,384
1,128
10,574
Denmark
-
2.1%
AP
Moller
-
Maersk
A/S
Class
B
2,620
3,780
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
56
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Coloplast
A/S
Class
B
7,294
907
Danske
Bank
A/S
47,038
761
Drilling
Co.
of
1972
A/S
(The)(Æ)
1,163
77
DSV
A/S
5,831
675
Genmab
A/S(Æ)
3,365
749
Novo
Nordisk
A/S
Class
B
22,589
1,310
8,259
Finland
-
0.7%
Elisa
OYJ
Class
A
1,574
87
Kone
OYJ
Class
B
6,625
433
Neste
OYJ
9,931
346
Nokia
OYJ
158,369
588
Nordea
Bank
AB
20,914
169
Nordea
Bank
Abp
344
3
Orion
OYJ
Class
B
1,887
87
Sampo
OYJ
Class
A
10,506
458
Stora
Enso
OYJ
Class
R
6,919
101
UPM-
Kymmene
OYJ
15,122
524
Wartsila
OYJ
Abp
Class
B
6,190
68
2,864
France
-
10.4%
Air
Liquide
SA
Class
A
20,139
2,862
Airbus
Group
SE
6,184
907
Amundi
SA(Þ)
21,746
1,709
Arkema
SA
908
97
Atos
SE
2,375
199
AXA
SA
21,044
594
BNP
Paribas
SA
33,245
1,979
Bouygues
SA
-
ADR
22,095
941
Capgemini
SE
4,703
576
Carrefour
SA
6,475
109
Cie
Generale
des
Etablissements
Michelin
SCA
Class
B
8,786
1,078
CNP
Assurances
700
14
Compagnie
de
Saint-Gobain
SA
46,121
1,895
Covivio
(ö)
626
71
Credit
Agricole
SA
111,694
1,627
Danone
SA
6,450
535
Eiffage
SA
1,933
222
Engie
SA
66,866
1,081
Eurazeo
SE
1,724
118
Hermes
International
810
606
Klepierre
SA
-
GDR(ö)
7,335
279
L'Oreal
SA
10,651
3,163
LVMH
Moet
Hennessy
Louis
Vuitton
SE
-
ADR
271
126
Natixis
SA
23,693
106
Orange
SA
-
ADR
8,481
125
Pernod
Ricard
SA
4,813
862
Peugeot
SA
3,268
78
Publicis
Groupe
SA
-
ADR
35,733
1,618
Renault
SA
19,756
937
Rexel
SA
Class
H
251,825
3,353
Safran
SA
17,600
2,728
Sanofi
-
ADR
10,411
1,046
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Schneider
Electric
SE
31,068
3,196
SCOR
SE
-
ADR
20,166
847
Societe
Generale
SA
43,723
1,528
Total
SA
68,158
3,766
Unibail
-
Rodamco
-Westfield(ö)
1,391
220
Vinci
SA
1,525
169
41,367
Germany
-
5.1%
Adidas
AG
2,051
667
Allianz
SE
3,743
918
BASF
SE
27,605
2,093
Bayer
AG
2,823
231
Beiersdorf
AG
3,565
427
BMW
US
Capital
LLC
3,827
315
Commerzbank
AG
18,403
114
Continental
AG
809
105
Covestro
AG(Þ)
19,618
912
Daimler
AG
24,536
1,360
Deutsche
Boerse
AG
16,920
2,660
Deutsche
Lufthansa
AG
33,134
610
Deutsche
Post
AG
3,305
126
Deutsche
Telekom
AG
8,128
133
E.ON
SE
38,503
412
Evonik
Industries
AG
2,666
82
Fresenius
SE
&
Co.
KGaA
1,750
99
GEA
Group
AG
4,183
138
Hannover
Rueck
SE
2,745
531
HeidelbergCement
AG
1,110
81
Infineon
Technologies
AG
-
ADR
28,745
659
Metro
AG(Æ)
49,527
302
Metro
Wholesale
&
Food
Specialist
AG
23,465
378
Muenchener
Rueckversicherungs-
Gesellschaft
AG
3,912
1,154
RWE
AG
12,433
382
Salzgitter
AG
6,117
136
SAP
SE
-
ADR
2
2
,
816
3,058
Siemens
AG
11,094
1,450
Symrise
AG
2,932
308
Uniper
SE
2,518
83
Vonovia
SE
2,035
110
Zalando
SE(Æ)(Þ)
4,344
220
20,254
Hong
Kong
-
2.8%
AIA
Group,
Ltd.
227,408
2,393
Bank
of
East
Asia,
Ltd.
(The)
60,800
136
China
Mobile,
Ltd.
114,500
967
China
Resources
Power
Holdings
Co.,
Ltd.
1,210,417
1,700
China
Unicom
Hong
Kong,
Ltd.
1,014,000
957
CK
Asset
Holdings,
Ltd.
27,549
200
CK
Hutchison
Holdings,
Ltd.
Class
B
36,313
347
CK
Infrastructure
Holdings,
Ltd.
42,500
303
CLP
Holdings,
Ltd.
32,500
342
Hang
Seng
Bank,
Ltd.
21,800
451
Henderson
Land
Development
Co.,
Ltd.
35,200
173
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
57
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Hongkong
Land
Holdings,
Ltd.
39,100
225
Hysan
Development
Co.,
Ltd.
20,000
79
Jardine
Matheson
Holdings,
Ltd.
5,400
300
Jardine
Strategic
Holdings,
Ltd.
4,400
135
Kerry
Properties,
Ltd.
18,500
59
Link
Real
Estate
Investment
Trust(ö)
16,076
171
New
World
Development
Co.,
Ltd.
165,000
226
Power
Assets
Holdings,
Ltd.
33,500
245
Sun
Hung
Kai
Properties,
Ltd.
13,000
199
Swire
Pacific,
Ltd.
Class
A
16,000
149
Swire
Properties,
Ltd.
18,416
61
Techtronic
Industries
Co.,
Ltd.
56,271
460
WH
Group,
Ltd.(Þ)
230,000
238
Wharf
Holdings,
Ltd.
(The)
32,000
81
Wharf
Real
Estate
Investment
Co.,
Ltd.
20,000
123
Wheelock
&
Co.,
Ltd.
28,000
187
10,907
India
-
1.3%
Canara
Bank(Æ)
119,258
370
HDFC
Bank,
Ltd.
-
ADR
54,876
3,476
Infosys,
Ltd.
-
ADR
69,146
714
NTPC,
Ltd.
30,955
52
Zee
Entertainment
Enterprises,
Ltd.
105,298
432
5,044
Indonesia
-
0.2%
Bank
Central
Asia
Tbk
PT
298,895
718
Ireland
-
0.6%
Accenture
PLC
Class
A
3,797
800
AIB
Group
PLC
84,267
295
Bank
of
Ireland
Group
PLC
156,758
865
CRH
PLC
7,610
305
Paddy
Power
Betfair
PLC
1,019
124
2,389
Israel
-
0.2%
Bank
Hapoalim
BM
43,318
359
Bank
Leumi
Le-Israel
BM
48,024
350
Israel
Discount
Bank,
Ltd.
Class
A
28,582
133
Mizrahi
Tefahot
Bank,
Ltd.
3,401
91
933
Italy
-
3.5%
Assicurazioni
Generali
SpA
54,821
1,132
BPER
Banca
109,385
550
Davide
Campari-Milano
SpA
58,379
533
Enel
SpA
447,276
3,559
ENI
SpA
-
ADR
141,327
2,196
Ferrari
NV
3,543
588
FinecoBank
Banca
Fineco
SpA
12,771
153
Intesa
Sanpaolo
SpA
105,897
279
Mediobanca
SpA
21,004
231
Moncler
SpA
12,797
576
Poste
Italiane
SpA
(Þ)
14,442
164
Saipem
SpA
(Æ)
136,856
669
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Snam
Rete
Gas
SpA
40,525
214
Telecom
Italia
SpA
(Æ)
830,901
518
Terna
Rete
Elettrica
Nazionale
SpA
31,532
211
UniCredit
SpA
154,915
2,265
13,838
Japan
-
18.4%
Aisin
Seiki
Co.,
Ltd.
3,000
111
ANA
Holdings,
Inc.
4,900
164
Aozora
Bank,
Ltd.
6,000
158
Asahi
Glass
Co.,
Ltd.
4,100
146
Asahi
Kasei
Corp.
18,000
202
Astellas
Pharma,
Inc.
30,700
524
Benesse
Holdings,
Inc.
5,100
134
Bridgestone
Corp.
19,600
728
Canon,
Inc.
32,000
873
Central
Japan
Railway
Co.
1,900
382
Chiba
Bank,
Ltd.
(The)
33,000
190
Chiyoda
Corp.(Æ)
31,000
80
Chubu
Electric
Power
Co.,
Inc.
7,500
106
Citizen
Watch
Co.,
Ltd.
71,900
390
Concordia
Financial
Group,
Ltd.
56,200
231
Dai
Nippon
Printing
Co.,
Ltd.
6,500
176
Daicel
Chemical
Industries,
Ltd.
8,200
78
Dai-ichi
Life
Holdings,
Inc.
112,050
1,845
Daito
Trust
Construction
Co.,
Ltd.
2,900
359
Daiwa
House
Industry
Co.,
Ltd.
4,400
136
Daiwa
Securities
Group,
Inc.
31,000
157
DeNA
Co.,
Ltd.
24,300
391
Denso
Corp.
15,900
717
East
Japan
Railway
Co.
3,600
325
Eisai
Co.,
Ltd.
10,740
800
Electric
Power
Development
Co.,
Ltd.
10,100
245
Fuji
Heavy
Industries,
Ltd.
12,900
319
Fuji
Media
Holdings,
Inc.
15,800
224
FUJIFILM
Holdings
Corp.
4,800
229
Fujitsu,
Ltd.
22,700
2,143
Fukuoka
Financial
Group,
Inc.
20,500
391
GMO
Payment
Gateway,
Inc.
6,800
468
Gree
,
Inc.
64,800
294
Hankyu
Hanshin
Holdings,
Inc.
5,800
248
Hitachi
Metals,
Ltd.
206,600
3,036
Hitachi,
Ltd.
4,900
206
Honda
Motor
Co.,
Ltd.
155,900
4,399
Iida
Group
Holdings
Co.,
Ltd.
54,000
945
Inpex
Corp.
296,400
3,093
Isuzu
Motors,
Ltd.
92,900
1,094
ITOCHU
Corp.
23,800
551
Japan
Airlines
Co.,
Ltd.
7,200
225
Japan
Exchange
Group,
Inc.
8,300
146
Japan
Post
Bank
Co.,
Ltd.
Class
A
8,800
84
Japan
Post
Holdings
Co.,
Ltd.
20,000
188
Japan
Tobacco,
Inc.
17,800
397
JFE
Holdings,
Inc.
5,800
74
JGC
Holdings
Corp.
54,400
875
JSR
Corp.
57,800
1,056
JX
Holdings,
Inc.
390,300
1,785
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
58
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Kajima
Corp.
9,000
120
Kamigumi
Co.,
Ltd.
10,000
219
KDDI
Corp.
27,900
830
Kirin
Holdings
Co.,
Ltd.
14,600
318
Konica
Minolta,
Inc.
10,900
71
Kyocera
Corp.
5,600
382
Kyushu
Electric
Power
Co.,
Inc.
5,100
44
Marubeni
Corp.
44,800
331
Mazda
Motor
Corp.
16,900
144
Medipal
Holdings
Corp.
6,000
132
Mitsubishi
Chemical
Holdings
Corp.
24,700
184
Mitsubishi
Corp.
18,100
480
Mitsubishi
Electric
Corp.
38,400
522
Mitsubishi
Estate
Co.,
Ltd.
39,800
761
Mitsubishi
Heavy
Industries,
Ltd.
30,100
1,164
Mitsubishi
Materials
Corp.
5,700
155
Mitsubishi
Motors
Corp.
70,700
294
Mitsubishi
UFJ
Financial
Group,
Inc.
373,200
2,018
Mitsui
&
Co.,
Ltd.
75,300
1,339
Mitsui
Chemicals,
Inc.
5,300
129
Mizuho
Financial
Group,
Inc.
604,500
930
MS&AD
Insurance
Group
Holdings,
Inc.
25,200
830
Murata
Manufacturing
Co.,
Ltd.
3,400
210
Nidec
Corp.
3,250
444
Nikon
Corp.
47,700
583
Nintendo
Co.,
Ltd.
1,610
650
Nippon
Steel
&
Sumitomo
Metal
Corp.
13,900
209
Nippon
Telegraph
&
Telephone
Corp.
16,406
416
Nippon
Television
Holdings,
Inc.
26,800
358
Nissan
Motor
Co.,
Ltd.
151,600
881
Nitto
Denko
Corp.
20,500
1,150
Nomura
Holdings,
Inc.
193,900
996
Nomura
Real
Estate
Holdings,
Inc.
3,100
75
NTT
DOCOMO,
Inc.
18,400
514
Obayashi
Corp.
21,400
237
Oji
Holdings
Corp.
52,900
286
ORIX
Corp.
26,200
436
Osaka
Gas
Co.,
Ltd.
8,400
160
Otsuka
Holdings
Co.,
Ltd.
6,200
276
Resona
Holdings,
Inc.
397,200
1,732
Ricoh
Co.,
Ltd.
21,400
232
Seibu
Holdings,
Inc.
3,600
59
Sekisui
Chemical
Co.,
Ltd.
11,900
206
Sekisui
House,
Ltd.
17,200
367
Shimamura
Co.,
Ltd.
9,300
710
Shimizu
Corp.
6,000
61
Shin-Etsu
Chemical
Co.,
Ltd.
4,635
508
SoftBank
Group
Corp.
13,200
575
Sompo
Japan
Nipponkoa
Holdings,
Inc.
7,700
302
Sony
Corp.
6,510
443
Sumitomo
Chemical
Co.,
Ltd.
25,000
113
Sumitomo
Corp.
24,200
361
Sumitomo
Electric
Industries,
Ltd.
21,000
315
Sumitomo
Metal
Mining
Co.,
Ltd.
5,000
161
Sumitomo
Mitsui
Financial
Group,
Inc.
80,500
2,964
Sumitomo
Mitsui
Trust
Holdings,
Inc.
29,300
1,156
T&D
Holdings,
Inc.
112,800
1,424
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Taiheiyo
Cement
Corp.
5,200
152
Takeda
Pharmaceutical
Co.,
Ltd.
34,300
1,359
Teijin,
Ltd.
7,000
131
THK
Co.,
Ltd.
18,500
497
Tohoku
Electric
Power
Co.,
Inc.
17,700
175
Tokio
Marine
Holdings,
Inc.
39,300
2,195
Tokyo
Electric
Power
Co.
Holdings,
Inc.
(Æ)
33,900
145
Tokyo
Electron,
Ltd.
2,900
637
Tokyo
Gas
Co.,
Ltd.
4,700
114
Tokyu
Fudosan
Holdings
Corp.
23,800
164
Toppan
Printing
Co.,
Ltd.
10,500
216
Toyota
Industries
Corp.
4,100
236
Toyota
Motor
Corp.
27,100
1,908
Toyota
Tsusho
Corp.
8,600
301
Trend
Micro,
Inc.
1,600
82
West
Japan
Railway
Co.
3,500
302
Yahoo!
Japan
Corp.
272,900
1,143
Yamada
Denki
Co.,
Ltd.
26,000
138
72,980
Luxembourg
-
0.3%
ArcelorMittal
SA(Æ)
7,875
139
Aroundtown
SA
12,829
115
Millicom
International
Cellular
SA
547
26
RTL
Group
SA
2,936
145
Spotify
Technology
SA(Æ)
3,945
590
Tenaris
SA
10,649
120
1,135
Macao
-
0.2%
Sands
China,
Ltd.
123,625
663
Malaysia
-
0.0%
CIMB
Group
Holdings
BHD
143,100
180
Netherlands
-
3.9%
ABN
AMRO
Group
NV(Þ)
50,076
915
Adyen
NV(Æ)(Þ)
702
578
Aegon
NV
41,917
192
ASML
Holding
NV
6,684
1,991
Euronext
NV(Þ)
7,422
606
Exor
NV
2,352
182
Heineken
NV
8,383
894
ING
Groep
NV
241,918
2,907
InterXion
Holding
NV(Æ)
8,688
728
Koninklijke
Ahold
Delhaize
NV
19,425
487
Koninklijke
KPN
NV
293,050
866
NN
Group
NV
6,815
259
Randstad
Holding
NV
1,958
120
Royal
Dutch
Shell
PLC
Class
A
104,533
3,079
TNT
NV
-
ADR
150,034
338
Unilever
NV
17,708
1,019
VEON,
Ltd.(Æ)
157,835
399
15,560
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
59
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
New
Zealand
-
0.2%
a2
Milk
Co.,
Ltd.(Æ)
54,557
550
Spark
New
Zealand,
Ltd.
29,159
85
635
Norway
-
0.7%
DNB
ASA
14,926
280
Marine
Harvest
ASA
10,241
266
Norsk
Hydro
ASA
255,790
955
Orkla
ASA
30,622
310
Statoil
ASA
Class
N
36,284
726
Telenor
ASA
10,428
187
2,724
Portugal
-
0.2%
Energias
de
Portugal
SA
69,724
302
Galp
Energia
SGPS
SA
Class
B
34,895
584
886
Russia
-
0.6%
Gazprom
PJSC
-
ADR
106,088
874
Lukoil
PJSC
-
ADR
5,068
503
Sberbank
of
Russia
PJSC
-
ADR
32,641
537
Yandex
NV
Class
A(Æ)
14,023
610
2,524
Singapore
-
1.4%
Ascendas
Real
Estate
Investment
Trust(Æ)(ö)
183,300
405
CapitaLand,
Ltd.
85,800
239
DBS
Group
Holdings,
Ltd.
64,500
1,243
Keppel
Corp.,
Ltd.
-
ADR
23,700
119
Oversea-Chinese
Banking
Corp.,
Ltd.
16,645
136
Singapore
Airlines,
Ltd.(Æ)
24,300
163
Singapore
Technologies
Engineering,
Ltd.
109,000
320
Singapore
Telecommunications,
Ltd.
245,700
616
United
Overseas
Bank,
Ltd.
10,500
207
UOL
Group,
Ltd.
15,400
95
Venture
Corp.,
Ltd.
12,900
156
Wilmar
International,
Ltd.
625,500
1,919
Yangzijiang
Shipbuilding
Holdings,
Ltd.
71,700
60
5,678
South
Africa
-
0.3%
Gold
Fields,
Ltd.
-
ADR
80,958
534
Impala
Platinum
Holdings,
Ltd.(Æ)
38,050
390
MTN
Group,
Ltd.
61,938
365
1,289
South
Korea
-
1.3%
KB
Financial
Group,
Inc.
24,492
1,011
KT
Corp.
-
ADR
79,085
917
POSCO
5,479
1,116
Samsung
Electronics
Co.,
Ltd.
14,773
712
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Shinhan
Financial
Group
Co.,
Ltd.
38,215
1,430
5,186
Spain
-
2.6%
ACS
Actividades
de
Construccion
y
Servicios
SA
4,727
189
Banco
Bilbao
Vizcaya
Argentaria
SA
-
ADR
62,751
354
Banco
Santander
SA
-
ADR
112,243
474
Bankia
SA
263,386
564
Bankinter
SA
14,092
104
CaixaBank
SA
396,112
1,249
Cellnex
Telecom
SA(Þ)
94,843
4,088
Enagas
SA
5,909
151
Endesa
SA
-
ADR
15,547
415
Gas
Natural
SDG
SA
10,383
261
Iberdrola
SA
91,916
947
Industria
de
Diseno
Textil
SA
11,323
401
Mapfre
SA
31,672
84
Red
Electrica
Corp.
SA
14,192
285
Repsol
SA
-
ADR
17,416
273
Telefonica
SA
-
ADR
40,445
283
10,122
Sweden
-
1.5%
Assa
Abloy
AB
Class
B
28,764
672
Atlas
Copco
AB(Æ)
12,975
517
Bausch
&
Lomb,
Inc.(Æ)
10,401
277
Investor
AB
Class
B
1,564
85
Kinnevik
AB
Class
B
3,988
98
Sandvik
AB
25,591
500
Skandinaviska
Enskilda
Banken
AB
Class
A
24,837
234
Skanska
AB
Class
B
5,334
121
SKF
AB
Class
B
16,922
343
Svenska
Handelsbanken
AB
Class
A
97,734
1,052
Swedbank
AB
Class
A
10,769
161
Swedish
Match
AB
4,393
226
Telefonaktiebolaget
LM
Ericsson
Class
B
75,605
662
Telia
Co.
AB
37,983
163
Trelleborg
AB
Class
B
30,275
545
Volvo
AB
Class
B
11,120
187
5,843
Switzerland
-
8.2%
ABB,
Ltd.
29,826
720
Adecco
SA
25,867
1,635
Alcon,
Inc.(Æ)
8,300
470
Baloise
Holding
AG
1,774
321
Chocoladefabriken
Lindt
&
Spruengli
AG
27
210
Cie
Financiere
Richemont
SA
1,133
89
Credit
Suisse
Group
AG(Æ)
77,821
1,056
Glencore
PLC(Æ)
77,853
243
Julius
Baer
Group,
Ltd.(Æ)
34,842
1,799
Kuehne
&
Nagel
International
AG
1,623
274
LafargeHolcim
,
Ltd.(Æ)
27,433
1,521
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
60
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Nestle
SA
40,410
4,378
Novartis
AG
61,979
5,872
Pargesa
Holding
SA
1,090
91
Partners
Group
Holding
AG
1,073
983
Roche
Holding
AG
13,064
4,236
SGS
SA
107
293
Sika
AG
5,921
1,115
Swiss
Life
Holding
AG
800
401
Swiss
Re
AG
7,695
865
Swisscom
AG
407
216
Temenos
AG(Æ)
3,656
578
UBS
Group
AG
342,625
4,324
Zurich
Insurance
Group
AG
2,559
1,050
32,740
Taiwan
-
1.1%
Catcher
Technology
Co.,
Ltd.
119,513
906
Hon
Hai
Precision
Industry
Co.,
Ltd.
410,184
1,242
Innolux
Corp.
1,324,000
369
MediaTek
,
Inc.
41,000
607
Shin
Kong
Financial
Holding
Co.,
Ltd.
(Æ)
1,382,000
478
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
69,000
764
4,366
Thailand
-
0.1%
Kasikornbank
PCL
110,800
555
United
Kingdom
-
13.6%
3i
Group
PLC
20,545
299
Admiral
Group
PLC
4,177
128
Anglo
American
PLC
53,291
1,538
AstraZeneca
PLC
43,573
4,359
Aviva
PLC
222,562
1,242
Babcock
International
Group
PLC
71,547
598
Barclays
PLC
488,669
1,167
Barratt
Developments
PLC
13,413
133
Berkeley
Group
Holdings
PLC
4,717
306
BP
PLC
544,044
3,415
British
American
Tobacco
PLC
10,853
462
British
Land
Co.
PLC
(The)(ö)
64,438
549
BT
Group
PLC
513,608
1,316
Centrica
PLC
612,799
730
Compass
Group
PLC
3,229
81
Diageo
PLC
56,988
2,401
Direct
Line
Insurance
Group
PLC
67,607
282
Experian
PLC
7,181
243
Fevertree
Drinks
PLC
16,136
449
Fiat
Chrysler
Automobiles
NV
18,218
270
GlaxoSmithKline
PLC
-
ADR
11,585
273
HSBC
Holdings
PLC
509,181
3,999
ITV
PLC
100,487
202
J
Sainsbury
PLC
858,455
2,632
John
Wood
Group
PLC
335,013
1,774
Kingfisher
PLC
316,010
916
Land
Securities
Group
PLC(ö)
47,368
622
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Legal
&
General
Group
PLC
91,982
371
Lloyds
Banking
Group
PLC
1,598,859
1,334
London
Stock
Exchange
Group
PLC
26,701
2,758
Marks
&
Spencer
Group
PLC
175,249
497
National
Grid
PLC
19,345
243
Pearson
PLC
7,320
62
Persimmon
PLC
Class
A
6,006
216
Prudential
PLC
60,381
1,162
Reckitt
Benckiser
Group
PLC
2,976
242
Rio
Tinto
PLC
29,481
1,752
Royal
Bank
of
Scotland
Group
PLC
396,764
1,272
RSA
Insurance
Group
PLC
27,558
208
Segro
PLC(ö)
12,111
145
Smith
&
Nephew
PLC
37,755
912
St.
James's
Place
PLC
15,239
236
Standard
Chartered
PLC
332,631
3,142
Standard
Life
Aberdeen
PLC(Æ)
117,740
513
Taylor
Wimpey
PLC
66,138
171
TechnipFMC
PLC
81,363
1,744
Tesco
PLC
403,955
1,368
Travis
Perkins
PLC
95,896
2,052
Unilever
PLC
2,116
121
United
Utilities
Group
PLC
8,004
101
Vodafone
Group
PLC
859,323
1,668
Wausau
Paper
Corp.
64,204
904
Willis
Towers
Watson
PLC(Æ)
2,000
404
Wm
Morrison
Supermarkets
PLC
29,824
79
54,063
United
States
-
2.7%
Abbott
Laboratories
19,803
1,720
Alphabet,
Inc.
Class
C(Æ)
1,507
2,015
Carnival
PLC
5,320
254
MasterCard,
Inc.
Class
A
7,585
2,264
Mylan
NV(Æ)
55,924
1,124
NVIDIA
Corp.
4,951
1,165
Visa,
Inc.
Class
A
10,817
2,033
10,575
Total
Common
Stocks
(cost
$352,667)
375,311
Preferred
Stocks
-
1.2%
Germany
-
1.2%
Porsche
Automobil
Holding
SE
2.210%
(Ÿ)
5,955
445
Volkswagen
AG
4.860%
(Ÿ)
22,078
4,365
4,810
Total
Preferred
Stocks
(cost
$3,972)
4,810
Warrants
&
Rights
-
0.0%
Spain
-
0.0%
Repsol
SA(Æ)
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
61
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2020
Rights
17,416
8
Total
Warrants
&
Rights
(cost
$8)
8
Short-Term
Investments
-
2.6%
United
States
-
2.6%
U.S.
Cash
Management
Fund
(@)
10,312,076
(∞)
10,315
Total
Short-Term
Investments
(cost
$10,316)
10,315
Other
Securities
-
0.3%
U.S.
Cash
Collateral
Fund(×)
(@)
1,037,378
(∞)
1,037
Total
Other
Securities
(cost
$1,037)
1,037
Total
Investments
98.6%
(identified
cost
$368,000)
391,481
Other
Assets
and
Liabilities,
Net
-
1.4%
5,625
Net
Assets
-
100.0%
397,106
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
62
International
Developed
Markets
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
2.4%
ABN
AMRO
Group
NV
06/26/19
EUR
50,076
18.08
905
915
Adyen
NV
07/25/19
EUR
702
743.78
522
578
Amundi
SA
02/21/19
EUR
21,746
65.34
1,421
1,709
Cellnex
Telecom
SA
06/19/17
EUR
94,843
30.17
2,861
4,088
Covestro
AG
06/26/19
EUR
19,618
44.56
874
912
Euronext
NV
04/25/19
EUR
7,422
69.64
517
606
Poste
Italiane
SpA
06/26/19
EUR
14,442
10.45
151
164
WH
Group,
Ltd.
06/26/19
HKD
230,000
1.05
240
238
Zalando
SE
12/12/19
EUR
4,344
46.15
200
220
9,430
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
319
EUR
11,896
03/20
(120)
MSCI
EAFE
Index
Futures
78
USD
7,942
03/20
28
S&P/TSX
60
Index
Futures
83
CAD
16,806
03/20
48
SPI
200
Index
Futures
76
AUD
12,546
03/20
(262)
TOPIX
Index
Futures
111
JPY
1,910,309
03/20
18
Short
Positions
Hang
Seng
Index
Futures
42
HKD
59,367
01/20
(71)
MSCI
Emerging
Markets
Index
Futures
328
USD
18,371
03/20
(445)
S&P
500
E-Mini
Index
Futures
170
USD
27,464
03/20
(487)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(1,291)
Foreign
Currency
Exchange
Contracts
Amounts
in thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
Montreal
USD
2,185
AUD
3,183
03/18/20
53
Bank
of
Montreal
USD
3,858
CAD
5,100
03/18/20
71
Bank
of
Montreal
USD
4,059
JPY
438,467
03/18/20
(8)
Bank
of
Montreal
HKD
12,006
USD
1,535
03/18/20
(5)
Bank
of
New
York
USD
2,190
AUD
3,183
03/18/20
48
Bank
of
New
York
USD
3,865
CAD
5,100
03/18/20
63
Bank
of
New
York
USD
4,061
JPY
438,467
03/18/20
(9)
Bank
of
New
York
HKD
12,006
USD
1,536
03/18/20
(4)
Brown
Brothers
Harriman
AUD
74
USD
52
01/02/20
—
Brown
Brothers
Harriman
CAD
53
USD
41
01/03/20
—
Brown
Brothers
Harriman
EUR
51
USD
57
01/02/20
—
Brown
Brothers
Harriman
GBP
52
USD
69
01/02/20
—
Brown
Brothers
Harriman
SEK
629
USD
67
01/02/20
—
Citigroup
USD
2,190
AUD
3,183
03/18/20
48
Citigroup
USD
3,867
CAD
5,100
03/18/20
60
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
63
Foreign
Currency
Exchange
Contracts
Amounts
in thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
USD
4,060
JPY
438,467
03/18/20
(8)
Citigroup
HKD
12,006
USD
1,536
03/18/20
(4)
Royal
Bank
of
Canada
USD
2,185
AUD
3,183
03/18/20
53
Royal
Bank
of
Canada
USD
3,860
CAD
5,100
03/18/20
69
Royal
Bank
of
Canada
USD
4,060
JPY
438,467
03/18/20
(8)
Royal
Bank
of
Canada
HKD
12,006
USD
1,535
03/18/20
(5)
Standard
Chartered
USD
2,186
AUD
3,183
03/18/20
52
Standard
Chartered
USD
3,858
CAD
5,100
03/18/20
71
Standard
Chartered
USD
4,059
JPY
438,467
03/18/20
(8)
Standard
Chartered
HKD
12,006
USD
1,535
03/18/20
(5)
State
Street
USD
3,289
GBP
2,489
03/18/20
15
State
Street
CHF
1,900
USD
1,941
03/18/20
(32)
State
Street
DKK
11,970
USD
1,789
03/18/20
(17)
State
Street
EUR
1,557
USD
1,738
03/18/20
(16)
State
Street
NOK
12,510
USD
1,367
03/18/20
(58)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
416
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
$
396
$
—
$
—
$
—
$
396
0.1
Australia
—
8,392
—
—
8,392
2.1
Austria
—
679
—
—
679
0.2
Belgium
—
3,248
—
—
3,248
0.8
Bermuda
—
152
—
—
152
—
*
Brazil
1,286
—
—
—
1,286
0.3
Canada
15,868
—
—
—
15,868
4.0
Cayman
Islands
439
—
—
—
439
0.1
China
4,746
5,828
—
—
10,574
2.7
Denmark
—
8,259
—
—
8,259
2.1
Finland
—
2,864
—
—
2,864
0.7
France
—
41,367
—
—
41,367
10.4
Germany
2,837
17,417
—
—
20,254
5.1
Hong
Kong
—
10,907
—
—
10,907
2.
8
India
4,190
854
—
—
5,044
1.3
Indonesia
—
718
—
—
718
0.2
Ireland
800
1,589
—
—
2,389
0.6
Israel
—
933
—
—
933
0.2
Italy
—
13,838
—
—
13,838
3.5
Japan
—
72,980
—
—
72,980
18.
4
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
64
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
Luxembourg
590
545
—
—
1,135
0.3
Macao
—
663
—
—
663
0.2
Malaysia
—
180
—
—
180
—
*
Netherlands
1,127
14,433
—
—
15,560
3.9
New
Zealand
—
635
—
—
635
0.2
Norway
—
2,724
—
—
2,724
0.7
Portugal
—
886
—
—
886
0.2
Russia
610
1,914
—
—
2,524
0.6
Singapore
—
5,678
—
—
5,678
1.4
South
Africa
534
755
—
—
1,289
0.3
South
Korea
917
4,269
—
—
5,186
1.3
Spain
—
10,122
—
—
10,122
2.6
Sweden
—
5,843
—
—
5,843
1.5
Switzerland
—
32,740
—
—
32,740
8.2
Taiwan
—
4,366
—
—
4,366
1.1
Thailand
—
555
—
—
555
0.1
United
Kingdom
2,148
51,915
—
—
54,063
13.6
United
States
10,321
254
—
—
10,575
2.7
Preferred
Stocks
—
4,810
—
—
4,810
1.2
Warrants
&
Rights
8
—
—
—
8
—
*
Short-Term
Investments
—
—
—
10,315
10,315
2.6
Other
Securities
—
—
—
1,037
1,037
0.3
Total
Investments
46,817
333,312
—
11,352
391,481
98.
6
Other
Assets
and
Liabilities,
Net
1.
4
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
94
—
—
—
94
—
*
Foreign
Currency
Exchange
Contracts
—
60
3
—
—
603
0.
2
A
Liabilities
Futures
Contracts
(1,385)
—
—
—
(1,385)
(0.3)
Foreign
Currency
Exchange
Contracts
—
(187)
—
—
(187)
(—)
*
Total
Other
Financial
Instruments
**
$
(1,291)
$
416
$
—
$
—
$
(875)
*
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.
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
65
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
2019,
see
note
2
in
the
Notes
to
Financial
Statements.
Amounts
in
thousands
Sector
Exposure
Fair
Value
$
Consumer
Discretionary
..........................................................
42,693
Consumer
Staples
...................................................................
14,265
Energy
....................................................................................
28,207
Financial
Services
...................................................................
120,128
Health
Care
.............................................................................
28,544
Materials
and
Processing
........................................................
37,992
Producer
Durables
..................................................................
39,293
Technology
..............................................................................
41,085
Utilities
...................................................................................
27,914
Warrants
&
Rights
..................................................................
8
Short-Term
Investments
..........................................................
10,315
Other
Securities
......................................................................
1,037
Total
Investments
....................................................................
391,481
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
66
International
Developed
Markets
Fund
Russell
Investment
Funds
International
Developed
Markets
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
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
$
—
$
603
Variation
margin
on
futures
contracts*
94
—
Total
$
94
$
603
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
1,385
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
187
Total
$
1,385
$
187
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
1,553
$
—
Foreign
currency
exchange
contracts
—
448
Total
$
1,553
$
448
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(113)
$
—
Foreign
currency
exchange
contracts
—
286
Total
$
(113)
$
286
*
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
67
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
$
1,022
$
—
$
1,022
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
603
—
603
Total
Financial
and
Derivative
Assets
1,625
—
1,625
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
1,625
$
—
$
1,625
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
$
123
$
12
$
—
$
111
Bank
of
New
York
111
14
—
97
Citigroup
109
13
—
96
JPMorgan
Chase
506
—
506
—
Merrill
Lynch
516
—
516
—
Royal
Bank
of
Canada
122
13
—
109
Standard
Chartered
123
12
—
111
State
Street
15
15
—
—
Total
$
1,625
$
79
$
1,022
$
524
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
68
International
Developed
Markets
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
$
187
$
—
$
187
Total
Financial
and
Derivative
Liabilities
187
—
187
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
187
$
—
$
187
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
$
12
$
12
$
—
$
—
Bank
of
New
York
14
14
—
—
Citigroup
13
13
—
—
Royal
Bank
of
Canada
13
13
—
—
Standard
Chartered
12
12
—
—
State
Street
123
15
—
108
Total
$
187
$
79
$
—
$
108
*
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.
International
Developed
Markets
Fund
69
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
368,000
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
391,481
Foreign
currency
holdings(^)
.........................................................................................................................................................
861
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
603
Receivables:
Dividends
and
interest
.......................................................................................................................................................
366
Dividends
from
affiliated
funds
..........................................................................................................................................
16
Fund
shares
sold
................................................................................................................................................................
5
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
746
From
broker(a)
...................................................................................................................................................................
6,176
Total
assets
.................................................................................................................................................
400,254
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
185
Accrued
fees
to
affiliates
....................................................................................................................................................
320
Other
accrued
expenses
.....................................................................................................................................................
125
Variation
margin
on
futures
contracts
.................................................................................................................................
1,288
Deferred
capital
gains
tax
liability
.....................................................................................................................................
6
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
187
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
1,037
Total
liabilities
.............................................................................................................................................
3,148
Net
Assets
............................................................................................................................................................
$
397,106
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
70
International
Developed
Markets
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2019
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
9,6
8
8
Shares
of
beneficial
interest
...........................................................................................................................................................
339
Additional
paid-in
capital
..............................................................................................................................................................
387,0
7
9
Net
Assets
............................................................................................................................................................
$
397,1
0
6
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
11.72
Net
assets
...............................................................................................................................................................................
$
397,105,592
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
33,885,361
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
852
(*)
Securities
on
loan
included
in
investments
$
1,022
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
1
1
,
352
(a)
Receivable
from
Broker
for
Futures
$
6,176
(#)
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.
International
Developed
Markets
Fund
71
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
12,78
3
Dividends
from
affiliated
funds
.........................................................................................................................................
278
Securities
lending
income
(net)
.........................................................................................................................................
53
Less
foreign
taxes
withheld
...............................................................................................................................................
(1,171)
Total
investment
income
...............................................................................................................................................................
11,
94
3
Expenses
Advisory
fees
....................................................................................................................................................................
3,463
Administrative
fees
...........................................................................................................................................................
192
Custodian
fees
...................................................................................................................................................................
221
Transfer
agent
fees
............................................................................................................................................................
16
Professional
fees
...............................................................................................................................................................
98
Trustees’
fees
....................................................................................................................................................................
16
Printing
fees
......................................................................................................................................................................
54
Miscellaneous
...................................................................................................................................................................
17
Total
expenses
...............................................................................................................................................................................
4,077
Net
investment
income
(loss)
........................................................................................................................................................
7,866
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
(3,4
94
)
Investments
in
affiliated
funds
..........................................................................................................................................
7
Futures
contracts
..............................................................................................................................................................
1,553
Foreign
currency
exchange
contracts
................................................................................................................................
448
Foreign
currency-related
transactions
...............................................................................................................................
(23)
Net
realized
gain
(loss)
..................................................................................................................................................................
(1,
509
)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
62,32
4
Investments
in
affiliated
funds
..........................................................................................................................................
(1)
Futures
contracts
..............................................................................................................................................................
(113)
Foreign
currency
exchange
contracts
................................................................................................................................
286
Foreign
currency-related
transactions
...............................................................................................................................
1
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
62,49
7
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
60,9
8
8
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
68,8
5
4
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
72
International
Developed
Markets
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
7,866
$
7,249
Net
realized
gain
(loss)
......................................................................................................................
(1,
50
9)
13,567
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
62,49
7
(83,059)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
68,8
5
4
(62,243)
Distributions
To
shareholders
.................................................................................................................................
(9,905)
(39,021)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(9,905)
(39,021)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(19,4
3
9)
22,550
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
39,5
1
0
(78,714)
Net
Assets
Beginning
of
period
.................................................................................................................................
357,596
436,310
End
of
period
..........................................................................................................................................
$
397,1
0
6
$
357,596
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
1,397
$
15,22
7
1,229
$
15,125
Proceeds
from
reinvestment
of
distributions
852
9,90
5
3,619
39,021
Payments
for
shares
redeemed
(3,974)
(44,5
7
1)
(2,481)
(31,596)
Total
increase
(decrease)
(1,725)
$
(19,4
3
9)
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.
74
International
Developed
Markets
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2019
10.04
.22
1.76
1.98
(.30)
—
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)
—
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
75
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.30)
11.72
19.72
397,106
1.06
1.06
2.03
72
(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
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
76
International
Developed
Markets
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
300,377
Administration
fees
16,688
Transfer
agent
fees
1,468
Trustee
fees
1,491
$
320,024
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
$
115,405
$
123,773
$
7
$
(1)
$
10,315
$
278
$
—
U.S.
Cash
Collateral
Fund
1,256
45,682
45,901
—
—
1,037
51
—
$
19,933
$
161,087
$
169,674
$
7
$
(1)
$
11,352
$
329
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
372,550,212
$
34,999,189
$
(16,374,263)
$
18,624,926
$
1,372,070
$
(10,320,344)
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
9,905,479
$
—
$
—
$
18,629,370
$
20,391,546
$
—
Russell
Investment
Funds
Strategic
Bond
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
Strategic
Bond
Fund
77
Strategic
Bond
Fund
Total
Return
1
Year
9
.19%
5
Years
2
.98%§
10
Years
4
.15%§
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index**
Total
Return
1
Year
8
.72%
5
Years
3
.05%§
10
Years
3
.75%§
Russell
Investment
Funds
Strategic
Bond
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
78
Strategic
Bond
Fund
The
Strategic
Bond
Fund
(the
“Fund”)
employs
a
multi-manager
approach
whereby
portions
of
the
Fund
are
allocated
to
different
money
manager
strategies.
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
advisor.
RIM
may
change
the
allocation
of
the
Fund’s
assets
among
money
managers
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2019,
the
Fund
had
three
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
total
return.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
9.19%.
This
is
compared
to
the
Fund’s
benchmark,
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
which
gained
8.72%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Intermediate-Term
Bond
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
8.68%.
This
return
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
RIM
may
assign
a
money
manager
a
benchmark
other
than
the
Fund’s
index.
However,
the
Fund’s
primary
index
remains
the
benchmark
for
the
Fund.
How
did
market
conditions
affect
the
Fund’s
performance?
The
fiscal
year
ended
December
31,
2019
began
with
a
strong
rally
on
the
back
of
the
market
sell
off
that
closed
the
prior
year.
Members
of
the
U.S.
Federal
Reserve
board
began
to
quickly
alter
their
late
2018
communications
in
favor
of
a
less
hawkish
and
eventually
solidly
dovish
bias.
This
caused
a
reversal
of
market
sentiment
to
open
the
year.
However,
interest
rates
remained
contained
and
in
fact
continued
to
fall
throughout
much
of
the
rest
of
the
fiscal
year.
The
10-year
Treasury,
which
began
the
fiscal
year
at
a
yield
of
2.68%,
fell
to
as
low
as
1.45%
in
early
September
before
ending
the
fiscal
year
at
a
yield
of
1.92%.
Credit
spreads,
on
the
other
hand,
reacted
very
favorably
to
the
change
in
rhetoric,
and
ultimately
policy,
from
the
Fed.
After
the
tumultuous
period
coming
into
the
year,
credit
spreads
experienced
a
sharp
rally
to
start
the
new
year,
and
most
sectors
of
the
market
sustained
that
momentum
to
finish
the
fiscal
year
with
spreads
notably
tighter
than
where
they
started.
The
U.S.
investment
grade
corporate
market
produced
especially
strong
results
with
the
Bloomberg
Barclays
U.S.
Corporate
Bond
Index
posting
a
total
return
of
14.5%
for
the
fiscal
year.
Emerging
market
currencies
also
responded
favorably
to
the
loosening
of
financial
conditions.
Volatile
and
troubled
economies
such
as
Turkey
and
Argentina
had
some
of
the
strongest
performing
currencies
over
the
course
of
the
fiscal
year.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
The
Fund
was
generally
positioned
long
duration,
underweight
to
government
and
government-guaranteed
securities
and
overweight
securitized
credit,
all
of
which
contributed
positively
to
benchmark-relative
performance.
A
small
underweight
to
investment
grade
corporates
during
parts
of
the
year
detracted
modestly
from
performance.
The
Fund
employs
discretionary
money
managers.
The
Fund’s
discretionary
money
managers
select
the
individual
portfolio
securities
for
the
assets
assigned
to
them.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
certain
of
the
Fund’s
money
managers,
Western
Asset
Management
Company
(“Western”)
was
the
best
performing
money
manager,
outperforming
both
the
Fund’s
benchmark
and
their
RIM-assigned
benchmark.
Western’s
strategic
biases
to
overweight
credit
and
maintain
long
duration
were
rewarded
on
both
sides
in
the
market
environment.
Western
was
also
tactical
with
its
duration
and
yield
curve
positioning,
allowing
it
to
add
further
value
beyond
its
strategic
biases.
Furthermore,
Western
favored
the
value
in
BBB-rated
corporate
bonds
and
emerging
market
issuers,
both
of
which
were
among
the
strongest
performing
segments
of
credit
markets.
Schroder
Investment
Management
North
America
Inc.
(“Schroder”)
was
the
worst
performing
money
manager
during
the
period,
slightly
underperforming
the
Fund’s
benchmark
but
outperforming
their
RIM-assigned
benchmark.
The
shorter
duration
nature
of
Schroder’s
securitized
credit
mandate
drove
the
underperformance
relative
to
the
Fund’s
benchmark.
However,
Schroder’s
lower
quality
bias
and
security
selection
within
the
securitized
credit
markets
led
to
substantial
outperformance
relative
to
their
RIM-assigned
benchmark.
During
the
period,
RIM
managed
multiple
positioning
strategies
to
seek
to
achieve
the
desired
risk/return
profile
for
the
Fund.
The
U.S.
Investment
Grade
Intelligent
Credit
positioning
strategy,
which
screens
securities
based
on
value
within
the
Bloomberg
Barclays
US
Corporate
Bond
Index
and
purchases
physical
bonds
that
RIM
believes
to
be
undervalued,
outperformed
the
Fund’s
Russell
Investment
Funds
Strategic
Bond
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
Strategic
Bond
Fund
79
benchmark.
The
strategy
benefited
both
from
its
longer
duration
nature
as
well
as
a
concentrated
emphasis
on
the
investment
grade
corporate
market.
On
the
downside,
the
U.S.
Government
positioning
strategy,
which
seeks
to
provide
exposure
to
securities
issued
by
the
U.S.
Government,
lagged
as
credit
spread
markets
outperformed.
RIM
also
managed
currency
factor
(carry,
value
and
trend)
and
rates
factor
(carry
and
value)
strategies
which
seek
to
generate
active
returns
through
currency
and
international
rates
positioning,
respectively,
to
reduce
the
Fund’s
reliance
on
traditional
fixed
income
market
risks.
The
rates
strategy
produced
solid
positive
performance
while
the
currency
factors
had
neutral
performance
for
the
fiscal
year.
Within
the
rates
strategy,
the
global
decline
in
interest
rates
led
to
considerable
convergence
in
global
interest
rates,
which
was
an
especially
positive
tailwind
for
the
value
component
with
the
rates
factors.
Among
currency
factors,
solid
performance
among
the
carry
and
value
factors,
particularly
within
emerging
market
currencies,
was
generally
offset
by
the
drag
from
another
year
of
negative
results
from
the
trend
factor.
During
the
period,
RIM
also
implemented
numerous
tactical
positioning
strategies
via
derivatives
that
added
to
Fund
performance
during
the
period.
RIM
utilized
interest
rate
derivatives
to
extend
duration
throughout
the
period,
which
had
the
greatest
impact
on
total
performance.
RIM
also
utilized
credit
default
swaps
to
capture
the
market
rally
that
began
the
period.
The
Fund’s
tactical
positions
in
developed
market
currencies
via
forwards
had
a
muted
impact.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
In
March
2019,
RIM
terminated
Insight
Investment
International
Limited
and
reallocated
the
assets
among
existing
strategies.
In
September
2019,
RIM
terminated
Metlife
Investment
Management,
LLC
and
Scout
Investments,
LLC
and
reallocated
the
assets
among
existing
strategies.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2019
Styles
Colchester
Global
Investors
Limited
Generalist
Schroder
Investment
Management
North
America
Inc.
Specialist
Western
Asset
Management
Company
and
Western
Asset
Management
Company
Limited
Generalist
*
Assumes
initial
investment
on
January
1,
2010.
**
The
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
is
an
index,
with
income
reinvested,
generally
representative
of
intermediate-term
government
bonds,
investment-grade
corporate
debt
securities
and
mortgage-backed
securities.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains.
Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased.
Past
performance
is
not
indicative
of
future
results.
Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Strategic
Bond
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
80
Strategic
Bond
Fund
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
July
1,
2019
to
December
31,
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
on
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,025.90
$
1,021.78
Expenses
Paid
During
Period*
$
3.47
$
3.47
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.68%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments
—
December
31,
2019
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
$
Long-Term
Investments
-
88.6%
Asset-Backed
Securities
-
5.2%
ACE
Securities
Corp.
Home
Equity
Loan
Trust
Series
2005-HE3
Class
M2
3.181%
due
05/25/35
(Ê)
174
174
ACE
Securities
Corp.
Mortgage
Loan
Trust
Series
2007-D1
Class
A2
6.336%
due
02/25/38
(~)(Ê)(Þ)
543
516
AEP
Texas
Restoration
Funding
LLC
Series
2019-1
Class
A2
2.294%
due
08/01/31
989
974
Ally
Auto
Receivables
Trust
Series
2019-2
Class
A2
2.340%
due
06/15/22
1,700
1,703
Americredit
Automobile
Receivables
Trust
Series
2019-1
Class
A2A
2.930%
due
06/20/22
905
908
Ameriquest
Mortgage
Securities,
Inc.
Asset-Backed
Pass-Through
Certificates
Series
2005-R1
Class
M4
3.596%
due
03/25/35
(Ê)
830
828
Applebee's
Funding
LLC
/
IHOP
Funding
LLC
Series
2019-1A
Class
A2I
4.194%
due
06/07/49
(Þ)
340
345
Asset
Backed
Securities
Corp.
Home
Equity
Loan
Trust
Series
2007-HE1
Class
A4
2.406%
due
12/25/36
(Ê)
464
449
Avis
Budget
Rental
Car
Funding LLC
Series
2019-2A
Class
A
3.350%
due
09/22/25
(Þ)
600
618
Bank
of
America
Corp.
Series
2017-A2
Class
A2
1.840%
due
01/17/23
1,474
1,474
BCAP
LLC
Trust
Series
2014-RR3
Class
3A2
2.629%
due
07/26/36
(~)(Ê)(Þ)
909
868
Series
2014-RR3
Class
5A2
2.639%
due
10/26/36
(~)(Ê)(Þ)
579
553
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
Series
2016-1A
Class
AA
2.487%
due
12/16/41
(~)(Ê)(Þ)
812
806
BNC
Mortgage
Loan
Trust
Series
2007-1
Class
A4
2.646%
due
03/25/37
(Ê)
851
814
CAL
Funding
III,
Ltd.
Series
2017-1A
Class
A
3.620%
due
06/25/42
(Þ)
593
593
Series
2018-2A
Class
A
4.340%
due
09/25/43
(Þ)
259
263
Carlyle
Global
Market
Strategies
CLO,
Ltd.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2017-2A
Class
AR
3.491%
due
01/18/29
(Ê)(Þ)
761
758
CarMax
Auto
Owner
Trust
Series
2017-3
Class
A3
1.970%
due
04/15/22
744
744
Citigroup
Mortgage
Loan
Trust,
Inc.
Series
2007-WFH2
Class
M2
2.936%
due
03/25/37
(Ê)
1,490
1,460
Conseco
Financial
Corp.
Series
1998-2
Class
M1
6.940%
due
12/01/28
(~)(Ê)
1,389
1,341
Countrywide
Asset-Backed
Certificates
Series
2007-4
Class
A4W
4.683%
due
04/25/47
1,565
1,632
Dividend
Solar
Loans
LLC
Series
2019-1
Class
A
3.670%
due
08/22/39
(Þ)
370
371
Education
Loan
Asset-Backed
Trust
I
Series
2013-1
Class
A2
3.066%
due
04/26/32
(Ê)(Þ)
580
575
Fieldstone
Mortgage
Investment
Trust
Series
2004-4
Class
M3
2.438%
due
10/25/35
(Ê)
349
351
Flatiron
CLO,
Ltd.
Series
2017-1A
Class
A
3.160%
due
05/15/30
(Ê)(Þ)
1,000
1,000
Greenpoint
Manufactured
Housing
Contract
Trust
Series
2000-4
Class
A3
3.846%
due
08/21/31
(Ê)
850
826
Home
Equity
Asset
Trust
Series
2005-9
Class
M1
2.233%
due
04/25/36
(Ê)
359
358
Series
2006-4
Class
2A4
2.103%
due
08/25/36
(Ê)
574
571
Series
2006-6
Class
2A3
0.596%
due
11/25/36
(Ê)
536
503
Horizon
Aircraft
Finance
I,
Ltd.
Series
2018-1
Class
A
4.458%
due
12/15/38
(Þ)
840
862
HSI
Asset
Securitization
Corp.
Trust
Series
2007-OPT1
Class
1A
2.626%
due
12/25/36
(Ê)
248
219
Legacy
Mortgage
Asset
Trust
Series
2019-GS4
Class
A1
3.438%
due
05/25/59
(~)(Ê)(Þ)
443
445
Long
Beach
Mortgage
Loan
Trust
Series
2004-1
Class
M1
3.236%
due
02/25/34
(Ê)
951
942
Series
2004-4
Class
M1
3.386%
due
10/25/34
(Ê)
645
644
Mastr
Asset
Backed
Securities
Trust
Series
2005-WMC1
Class
M4
2.768%
due
03/25/35
(Ê)
429
431
Merrill
Lynch
Mortgage
Investors
Trust
Series
2006-FF1
Class
M4
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
2.378%
due
08/25/36
(Ê)
790
788
Navient
Student
Loan
Trust
Series
2015-1
Class
A2
2.423%
due
04/25/40
(Ê)
175
171
New
Century
Home
Equity
Loan
Trust
Series
2005-B
Class
M1
2.303%
due
10/25/35
(Ê)
690
672
Option
One
Mortgage
Loan
Trust
Series
2004-3
Class
M1
1.314%
due
11/25/34
(Ê)
456
455
Series
2007-FXD1
Class
3A4
5.860%
due
01/25/37
(~)(Ê)
790
789
Park
Place
Securities,
Inc.
Asset-Backed
Pass-Through
Certificates
Series
2005-WHQ1
Class
M5
1.896%
due
03/25/35
(Ê)
1,290
1,286
Popular
ABS
Mortgage
Pass-Through
Trust
Series
2006-C
Class
A4
2.736%
due
07/25/36
(Ê)
389
387
Series
2006-D
Class
A3
2.746%
due
11/25/36
(Ê)
1,296
1,279
RAMP
Trust
Series
2006-RZ1
Class
M4
3.055%
due
03/25/36
(Ê)
960
932
Renaissance
Home
Equity
Loan
Trust
Series
2006-1
Class
AF6
5.746%
due
05/25/36
(~)(Ê)
95
63
SBA
Small
Business
Investment
Cos.
Series
2017-10A
Class
1
2.845%
due
03/10/27
206
209
Series
2019-10A
Class
1
3.113%
due
03/10/29
198
205
SLM
Private
Credit
Student
Loan
Trust
Series
2005-B
Class
A4
2.941%
due
06/15/39
(Ê)
194
190
Series
2006-A
Class
A5
2.901%
due
06/15/39
(Ê)
196
191
SMB
Private
Education
Loan
Trust
Series
2019-B
Class
A2B
3.028%
due
06/15/37
(Ê)(Þ)
190
190
SoFi
Professional
Loan
Program
Trust
Series
2019-A
Class
A2FX
3.690%
due
06/15/48
(Þ)
730
754
Structured
Asset
Investment
Loan
Trust
Series
2005-HE3
Class
M1
2.543%
due
09/25/35
(Ê)
578
577
Structured
Asset
Securities
Corp.
Mortgage
Loan
Trust
Series
2007-BC3
Class
2A4
2.278%
due
05/25/47
(Ê)
1,422
1,200
Sunrun
Atlas
Issuer
LLC
Series
2019-2
Class
A
3.610%
due
01/30/55
(Š)(Þ)
600
596
Textainer
Marine
Containers,
Ltd.
Series
2017-1A
Class
A
3.720%
due
05/20/42
(Þ)
759
762
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Towd
Point
Mortgage
Trust
Series
2016-3
Class
A1
2.250%
due
04/25/56
(~)(Ê)(Þ)
205
205
Series
2017-1
Class
A1
2.750%
due
10/25/56
(~)(Ê)(Þ)
939
945
Series
2017-3
Class
A1
2.750%
due
07/25/57
(~)(Ê)(Þ)
451
452
Series
2017-4
Class
A1
2.750%
due
06/25/57
(~)(Ê)(Þ)
573
576
Series
2018-4
Class
A1
3.000%
due
06/25/58
(~)(Ê)(Þ)
1,104
1,120
Series
2019-1
Class
A1
3.750%
due
03/25/58
(~)(Ê)(Þ)
1,304
1,353
Series
2019-4
Class
A1
2.900%
due
07/25/59
(~)(Ê)(Þ)
1,775
1,784
Triton
Container
Finance
IV
LLC
Series
2017-2A
Class
A
3.620%
due
08/20/42
(Þ)
514
513
Triton
Container
Finance
V
LLC
Series
2018-1A
Class
A
3.950%
due
03/20/43
(Þ)
205
206
Triton
Container
Finance
VI
LLC
Series
2017-1A
Class
A
3.520%
due
06/20/42
(Þ)
570
568
United
States
Small
Business
Administration
Series
2019-20D
Class
1
2.980%
due
04/01/39
68
70
Series
2019-25G
Class
1
2.690%
due
07/01/44
70
71
VOLT
LXII
LLC
Series
2017-NPL9
Class
A1
3.125%
due
09/25/47
(~)(Ê)(Þ)
1,808
1,808
47,286
Corporate
Bonds
and
Notes
-
17.6%
3M
Co.
2.750%
due
03/01/22
305
310
2.375%
due
08/26/29
70
69
ABB
Treasury
Center,
Inc.
4.000%
due
06/15/21
(Þ)
220
227
Abbott
Laboratories
3.750%
due
11/30/26
51
56
4.750%
due
11/30/36
60
75
4.900%
due
11/30/46
80
105
AbbVie,
Inc.
2.300%
due
05/14/21
745
748
2.300%
due
11/21/22
(Þ)
440
442
2.600%
due
11/21/24
(Þ)
390
392
3.600%
due
05/14/25
60
63
2.950%
due
11/21/26
(Þ)
100
101
3.200%
due
11/21/29
(Þ)
380
386
Aetna,
Inc.
2.800%
due
06/15/23
30
30
Air
Lease
Corp.
Series
513
3.875%
due
04/01/21
714
729
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
Allergan
Finance
LLC
3.250%
due
10/01/22
706
721
Allergan
Sales
LLC
5.000%
due
12/15/21
(Þ)
687
718
Altria
Group,
Inc.
3.490%
due
02/14/22
40
41
2.850%
due
08/09/22
170
173
4.000%
due
01/31/24
690
732
3.800%
due
02/14/24
110
116
4.400%
due
02/14/26
350
380
10.200%
due
02/06/39
482
775
5.950%
due
02/14/49
100
121
Amazon.com,
Inc.
2.500%
due
11/29/22
715
729
4.950%
due
12/05/44
60
78
Series
WI
5.200%
due
12/03/25
100
116
3.150%
due
08/22/27
220
233
3.875%
due
08/22/37
50
57
4.050%
due
08/22/47
70
82
American
Airlines
Pass-Through
Trust
Series
2013-2
Class
A
4.950%
due
01/15/23
99
104
American
Express
Co.
3.375%
due
05/17/21
261
266
American
Express
Credit
Corp.
2.250%
due
05/05/21
723
726
American
International
Group,
Inc.
3.750%
due
07/10/25
110
118
American
Tower
Corp.
2.250%
due
01/15/22
230
231
Amgen,
Inc.
2.650%
due
05/11/22
274
278
3.625%
due
05/22/24
10
11
4.400%
due
05/01/45
100
112
Andeavor
LLC
Series
WI
5.125%
due
12/15/26
225
240
Anheuser-Busch
Cos.
LLC
/
Anheuser-
Busch
InBev
Worldwide,
Inc.
3.650%
due
02/01/26
470
501
4.900%
due
02/01/46
70
83
Anheuser-Busch
InBev
Finance,
Inc.
3.300%
due
02/01/23
180
186
Anheuser-Busch
InBev
Worldwide,
Inc.
4.150%
due
01/23/25
360
392
4.000%
due
04/13/28
20
22
4.750%
due
01/23/29
90
104
5.875%
due
06/15/35
207
255
5.550%
due
01/23/49
160
207
Anthem,
Inc.
3.700%
due
08/15/21
40
41
3.125%
due
05/15/22
30
31
2.950%
due
12/01/22
80
82
3.350%
due
12/01/24
30
31
3.650%
due
12/01/27
110
116
4.550%
due
03/01/48
675
762
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Aon
Corp.
8.205%
due
01/01/27
172
221
Apache
Corp.
3.250%
due
04/15/22
16
16
4.375%
due
10/15/28
70
73
5.100%
due
09/01/40
140
142
4.750%
due
04/15/43
130
125
4.250%
due
01/15/44
120
110
Apple,
Inc.
2.400%
due
05/03/23
716
728
2.450%
due
08/04/26
110
111
4.650%
due
02/23/46
100
125
Ares
Capital
Corp.
3.500%
due
02/10/23
261
265
Associated
Bank
NA
Series
BKNT
3.500%
due
08/13/21
365
372
AT&T,
Inc.
3.000%
due
02/15/22
40
41
3.875%
due
01/15/26
685
733
3.800%
due
02/15/27
80
85
5.250%
due
03/01/37
190
227
4.350%
due
06/15/45
100
108
Athene
Holding,
Ltd.
4.125%
due
01/12/28
630
652
Avnet,
Inc.
4.875%
due
12/01/22
410
434
BAC
Capital
Trust
XIV
Series
G
4.000%
due
09/29/49
(Ê)(ƒ)
70
64
Bank
of
America
Corp.
3.550%
due
03/05/24
(Ê)
130
135
4.000%
due
01/22/25
175
187
3.366%
due
01/23/26
(Ê)
325
340
4.250%
due
10/22/26
320
349
4.271%
due
07/23/29
(Ê)
200
222
3.974%
due
02/07/30
(Ê)
500
549
4.330%
due
03/15/50
(Ê)
30
36
Series
AA
6.100%
due
12/31/49
(Ê)(ƒ)
10
11
Series
GMTN
2.625%
due
04/19/21
718
725
3.300%
due
01/11/23
460
475
4.450%
due
03/03/26
30
33
3.500%
due
04/19/26
790
840
3.593%
due
07/21/28
(Ê)
260
275
Series
WI
3.004%
due
12/20/23
(Ê)
42
43
3.419%
due
12/20/28
(Ê)
482
505
BankUnited
,
Inc.
4.875%
due
11/17/25
661
720
Barrick
NA
Finance
LLC
5.700%
due
05/30/41
130
160
BAT
Capital
Corp.
Series
WI
3.557%
due
08/15/27
445
454
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
4.540%
due
08/15/47
160
160
Bayer
US
Finance
II
LLC
3.500%
due
06/25/21
(Þ)
713
726
Bayer
US
Finance
LLC
3.375%
due
10/08/24
(Þ)
726
748
BB&T
Corp.
2.050%
due
05/10/21
728
730
Becton
Dickinson
and
Co.
3.363%
due
06/06/24
180
187
3.734%
due
12/15/24
706
748
4.685%
due
12/15/44
8
9
Berkshire
Hathaway
Energy
Co.
Series
WI
2.800%
due
01/15/23
245
251
3.800%
due
07/15/48
491
527
Berkshire
Hathaway
Finance
Corp.
4.200%
due
08/15/48
621
733
4.250%
due
01/15/49
130
154
Berkshire
Hathaway,
Inc.
3.125%
due
03/15/26
694
731
Blue
Racer
Midstream
LLC
/
Blue
Racer
Finance
Corp.
6.125%
due
11/15/22
(Þ)
30
29
BMW
US
Capital
LLC
2.000%
due
04/11/21
(Þ)
724
725
1.850%
due
09/15/21
(Þ)
20
20
Boardwalk
Pipelines,
LP
4.800%
due
05/03/29
710
758
Boeing
Co.
(The)
2.125%
due
03/01/22
272
273
3.100%
due
05/01/26
20
21
2.700%
due
02/01/27
40
41
2.800%
due
03/01/27
30
30
3.200%
due
03/01/29
120
125
3.250%
due
02/01/35
380
388
3.750%
due
02/01/50
40
42
BP
Capital
Markets
America,
Inc.
3.245%
due
05/06/22
10
10
2.520%
due
09/19/22
250
253
2.750%
due
05/10/23
513
525
3.216%
due
11/28/23
290
302
3.410%
due
02/11/26
200
213
3.119%
due
05/04/26
120
125
Brighthouse
Financial,
Inc.
Series
WI
4.700%
due
06/22/47
859
794
Bristol-Myers
Squibb
Co.
2.250%
due
08/15/21
(Þ)
70
70
2.600%
due
05/16/22
(Þ)
90
91
3.550%
due
08/15/22
(Þ)
30
31
2.900%
due
07/26/24
(Þ)
290
299
3.875%
due
08/15/25
(Þ)
200
216
3.200%
due
06/15/26
(Þ)
190
199
3.900%
due
02/20/28
(Þ)
380
418
3.400%
due
07/26/29
(Þ)
170
182
5.000%
due
08/15/45
(Þ)
80
102
Broadcom,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.125%
due
04/15/21
(Þ)
712
720
Brown
&
Brown,
Inc.
4.200%
due
09/15/24
693
737
Bunge,
Ltd.
Finance
Corp.
3.000%
due
09/25/22
531
538
4.350%
due
03/15/24
220
231
Burlington
Northern
Santa
Fe
LLC
3.400%
due
09/01/24
220
233
4.550%
due
09/01/44
461
548
4.150%
due
04/01/45
100
113
Cameron
LNG
LLC
2.902%
due
07/15/31
(Þ)
40
40
3.302%
due
01/15/35
(Þ)
140
141
Caterpillar
Financial
Services
Corp.
Series
I
2.650%
due
05/17/21
276
279
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp.
3.849%
due
04/15/23
242
254
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
5.050%
due
03/30/29
360
408
5.375%
due
04/01/38
80
92
5.750%
due
04/01/48
350
408
Series
WI
4.908%
due
07/23/25
420
462
6.384%
due
10/23/35
20
25
6.484%
due
10/23/45
60
75
6.834%
due
10/23/55
593
773
Chevron
Corp.
2.100%
due
05/16/21
302
303
2.355%
due
12/05/22
436
442
2.954%
due
05/16/26
70
73
Chubb
INA
Holdings,
Inc.
3.350%
due
05/03/26
30
32
Cigna
Corp.
Series
WI
3.400%
due
09/17/21
60
61
3.750%
due
07/15/23
150
157
4.125%
due
11/15/25
130
141
4.375%
due
10/15/28
460
509
Cimarex
Energy
Co.
4.375%
due
06/01/24
10
11
3.900%
due
05/15/27
210
217
4.375%
due
03/15/29
80
85
Cintas
Corp.
No.
2
2.900%
due
04/01/22
60
61
3.700%
due
04/01/27
70
76
Cisco
Systems,
Inc.
2.200%
due
02/28/21
220
221
Citigroup,
Inc.
4.450%
due
09/29/27
610
671
8.125%
due
07/15/39
550
920
5.300%
due
05/06/44
101
129
4.750%
due
05/18/46
220
264
4.650%
due
07/23/48
55
69
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
Series
9-RG
4.650%
due
07/30/45
147
182
Series
P
5.950%
due
12/31/49
(Ê)(ƒ)
280
306
CME
Group,
Inc.
5.300%
due
09/15/43
30
40
CNH
Industrial
Capital
LLC
3.875%
due
10/15/21
250
257
CNOOC
Finance
USA
LLC
3.500%
due
05/05/25
550
575
Coca-Cola
Co.
(The)
3.300%
due
09/01/21
281
288
Comcast
Cable
Communications
Holdings,
Inc.
9.455%
due
11/15/22
583
704
Comcast
Corp.
1.625%
due
01/15/22
290
289
3.700%
due
04/15/24
260
277
3.950%
due
10/15/25
200
218
3.150%
due
03/01/26
30
31
4.150%
due
10/15/28
350
394
4.250%
due
10/15/30
120
137
6.500%
due
11/15/35
90
127
6.550%
due
07/01/39
200
284
Concho
Resources,
Inc.
4.375%
due
01/15/25
90
93
3.750%
due
10/01/27
110
116
4.300%
due
08/15/28
90
98
Constellation
Brands,
Inc.
4.750%
due
11/15/24
40
44
Continental
Airlines
Pass-Through
Trust
Series
071A
Class
A
5.983%
due
04/19/22
71
75
Continental
Resources,
Inc.
4.500%
due
04/15/23
110
115
3.800%
due
06/01/24
80
83
4.900%
due
06/01/44
10
11
Series
WI
4.375%
due
01/15/28
130
138
Crown
Castle
International
Corp.
4.875%
due
04/15/22
299
317
5.250%
due
01/15/23
203
220
CVS
Health
Corp.
2.750%
due
12/01/22
90
91
3.700%
due
03/09/23
260
271
2.625%
due
08/15/24
200
202
4.100%
due
03/25/25
190
204
4.300%
due
03/25/28
590
644
3.250%
due
08/15/29
200
203
4.780%
due
03/25/38
70
79
5.125%
due
07/20/45
140
166
5.050%
due
03/25/48
265
313
Daimler
Finance
NA
LLC
2.875%
due
03/10/21
(Þ)
320
323
DCP
Midstream
Operating,
LP
6.450%
due
11/03/36
(Þ)
30
32
Delhaize
America,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
9.000%
due
04/15/31
154
228
Dell
International
LLC
/
EMC
Corp.
4.420%
due
06/15/21
(Þ)
430
442
Delta
Air
Lines
Pass-Through
Trust
Series
071A
Class
A
6.821%
due
08/10/22
33
36
Series
2002-1
6.718%
due
01/02/23
72
76
Delta
Air
Lines,
Inc.
3.625%
due
03/15/22
223
228
Devon
Energy
Corp.
5.850%
due
12/15/25
440
521
5.000%
due
06/15/45
180
208
Devon
Financing
Co.
LLC
7.875%
due
09/30/31
150
209
Diageo
Investment
Corp.
2.875%
due
05/11/22
90
92
Diamondback
Energy,
Inc.
Series
WI
5.375%
due
05/31/25
30
31
DISH
DBS
Corp.
Series
WI
5.875%
due
11/15/24
220
225
7.750%
due
07/01/26
30
32
Dominion
Energy,
Inc.
2.715%
due
08/15/21
(~)(Ê)
726
731
7.000%
due
06/15/38
20
28
Domtar
Corp.
6.750%
due
02/15/44
656
760
Dow
Chemical
Co.
(The)
3.500%
due
10/01/24
694
728
Duke
Energy
Carolinas
LLC
5.300%
due
02/15/40
30
39
4.000%
due
09/30/42
100
111
Duke
Energy
Corp.
3.750%
due
04/15/24
682
722
DuPont
de
Nemours,
Inc.
5.319%
due
11/15/38
589
701
Eaton
Corp.
2.750%
due
11/02/22
150
153
4.150%
due
11/02/42
40
45
Edison
International
4.125%
due
03/15/28
718
736
EMD
Finance
LLC
3.250%
due
03/19/25
(Þ)
272
280
Enbridge
Energy
Partners,
LP
7.375%
due
10/15/45
484
721
Energy
Transfer
Operating,
LP
5.875%
due
01/15/24
653
722
4.500%
due
04/15/24
100
106
6.250%
due
04/15/49
10
12
Series
10Y
4.950%
due
06/15/28
20
22
Enterprise
Products
Operating
LLC
3.500%
due
02/01/22
708
730
3.900%
due
02/15/24
30
32
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
4.150%
due
10/16/28
310
342
7.550%
due
04/15/38
20
29
4.850%
due
03/15/44
20
23
4.200%
due
01/31/50
160
171
EOG
Resources,
Inc.
4.150%
due
01/15/26
30
33
EQM
Midstream
Partners,
LP
Series
5Y
4.750%
due
07/15/23
260
261
ERP
Operating,
LP
4.625%
due
12/15/21
686
717
Exelon
Corp.
3.497%
due
06/01/22
245
252
Series
WI
3.950%
due
06/15/25
489
525
Exelon
Generation
Co.
LLC
5.600%
due
06/15/42
615
703
Exxon
Mobil
Corp.
2.726%
due
03/01/23
778
797
3.043%
due
03/01/26
60
63
4.114%
due
03/01/46
40
47
FedEx
Corp.
4.500%
due
02/01/65
226
202
Fidelity
National
Information
Services,
Inc.
3.750%
due
05/21/29
675
738
FirstEnergy
Corp.
Series
B
4.250%
due
03/15/23
100
105
3.900%
due
07/15/27
370
395
Series
C
7.375%
due
11/15/31
550
776
Ford
Holdings
LLC
9.300%
due
03/01/30
564
714
Ford
Motor
Co.
7.450%
due
07/16/31
446
529
4.750%
due
01/15/43
10
9
7.400%
due
11/01/46
230
262
Ford
Motor
Credit
Co.
LLC
5.875%
due
08/02/21
200
209
3.096%
due
05/04/23
739
738
Series
FXD
3.813%
due
10/12/21
200
204
Fox
Corp.
4.709%
due
01/25/29
(Þ)
30
34
5.476%
due
01/25/39
(Þ)
270
330
Freeport-McMoRan,
Inc.
3.550%
due
03/01/22
10
10
4.550%
due
11/14/24
10
11
5.450%
due
03/15/43
230
238
Fresenius
Medical
Care
US
Finance
II,
Inc.
5.875%
due
01/31/22
(Þ)
236
252
4.750%
due
10/15/24
(Þ)
110
119
General
Dynamics
Corp.
3.000%
due
05/11/21
713
725
General
Electric
Co.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.300%
due
02/11/21
130
134
Series
GMTN
6.875%
due
01/10/39
511
680
Series
MTNA
6.750%
due
03/15/32
619
794
General
Motors
Co.
4.875%
due
10/02/23
671
720
6.250%
due
10/02/43
110
123
General
Motors
Financial
Co.,
Inc.
4.375%
due
09/25/21
20
21
4.200%
due
11/06/21
335
348
4.250%
due
05/15/23
10
11
4.350%
due
04/09/25
505
541
Georgia
Power
Co.
2.850%
due
05/15/22
250
254
Gilead
Sciences,
Inc.
3.650%
due
03/01/26
90
97
4.750%
due
03/01/46
100
120
GlaxoSmithKline
Capital,
Inc.
2.800%
due
03/18/23
449
460
Glencore
Funding
LLC
4.125%
due
03/12/24
(Þ)
430
450
4.625%
due
04/29/24
(Þ)
40
42
4.000%
due
03/27/27
(Þ)
350
363
3.875%
due
10/27/27
(Þ)
60
62
GLP
Capital,
LP
/
GLP
Financing
II,
Inc.
5.375%
due
11/01/23
80
87
5.375%
due
04/15/26
653
722
Goldman
Sachs
Group,
Inc.
(The)
2.875%
due
02/25/21
324
327
5.250%
due
07/27/21
380
399
3.200%
due
02/23/23
70
72
3.850%
due
07/08/24
150
159
3.272%
due
09/29/25
(Ê)
350
362
4.250%
due
10/21/25
310
336
3.500%
due
11/16/26
90
95
3.691%
due
06/05/28
(Ê)
200
212
4.223%
due
05/01/29
(Ê)
50
55
6.750%
due
10/01/37
410
568
4.411%
due
04/23/39
(Ê)
100
114
6.250%
due
02/01/41
160
223
5.150%
due
05/22/45
200
245
4.750%
due
10/21/45
250
304
Halliburton
Co.
3.800%
due
11/15/25
70
75
4.850%
due
11/15/35
130
147
Hanesbrands,
Inc.
4.625%
due
05/15/24
(Þ)
10
11
4.875%
due
05/15/26
(Þ)
70
74
Harman
International
Industries,
Inc.
4.150%
due
05/15/25
233
248
Hasbro,
Inc.
5.100%
due
05/15/44
480
476
HCA,
Inc.
5.000%
due
03/15/24
50
55
4.500%
due
02/15/27
40
43
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
5.625%
due
09/01/28
100
114
4.125%
due
06/15/29
269
285
5.500%
due
06/15/47
463
531
Home
Depot,
Inc.
(The)
3.250%
due
03/01/22
525
542
2.625%
due
06/01/22
243
248
Honeywell
International,
Inc.
1.850%
due
11/01/21
730
731
HSBC
USA,
Inc.
7.200%
due
07/15/97
457
694
Humana,
Inc.
3.150%
due
12/01/22
10
10
3.950%
due
03/15/27
200
215
4.625%
due
12/01/42
20
22
4.950%
due
10/01/44
20
24
4.800%
due
03/15/47
10
12
Huntington
National
Bank
(The)
3.150%
due
03/14/21
281
284
Ingersoll-Rand
Global
Holding
Co.,
Ltd.
2.900%
due
02/21/21
500
505
Intel
Corp.
3.700%
due
07/29/25
20
22
Series
WI
3.734%
due
12/08/47
10
11
International
Business
Machines
Corp.
2.250%
due
02/19/21
270
271
3.000%
due
05/15/24
220
228
3.500%
due
05/15/29
215
231
International
Lease
Finance
Corp.
8.625%
due
01/15/22
50
56
5.875%
due
08/15/22
410
446
International
Paper
Co.
5.150%
due
05/15/46
188
216
Jefferies
Group
LLC
6.500%
due
01/20/43
635
755
Jefferies
Group
LLC
/
Jefferies
Group
Capital
Finance,
Inc.
4.150%
due
01/23/30
732
775
Johnson
&
Johnson
2.250%
due
03/03/22
725
733
3.625%
due
03/03/37
70
77
JPMorgan
Chase
&
Co.
2.550%
due
03/01/21
30
30
4.350%
due
08/15/21
130
135
4.500%
due
01/24/22
691
725
3.875%
due
09/10/24
100
107
4.023%
due
12/05/24
(Ê)
220
234
4.125%
due
12/15/26
230
252
4.250%
due
10/01/27
30
33
4.203%
due
07/23/29
(Ê)
200
223
4.452%
due
12/05/29
(Ê)
260
296
8.750%
due
09/01/30
280
408
4.950%
due
06/01/45
100
127
Keurig
Dr
Pepper,
Inc.
Series
WI
3.551%
due
05/25/21
608
621
4.057%
due
05/25/23
222
234
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Kinder
Morgan
Energy
Partners,
LP
3.500%
due
03/01/21
30
30
6.550%
due
09/15/40
600
765
5.500%
due
03/01/44
20
23
Kinder
Morgan,
Inc.
4.300%
due
06/01/25
80
87
4.300%
due
03/01/28
170
185
5.550%
due
06/01/45
80
96
5.050%
due
02/15/46
30
34
Series
GMTN
7.800%
due
08/01/31
176
242
KKR
Group
Finance
Co.
II
LLC
5.500%
due
02/01/43
(Þ)
10
12
Kraft
Heinz
Foods
Co.
4.875%
due
02/15/25
(Þ)
28
29
Series
WI
3.000%
due
06/01/26
60
60
5.000%
due
07/15/35
702
778
Kroger
Co.
(The)
2.600%
due
02/01/21
225
226
5.150%
due
08/01/43
20
23
L3Harris
Technologies,
Inc.
4.854%
due
04/27/35
40
47
5.054%
due
04/27/45
40
49
Lamb
Weston
Holdings,
Inc.
4.875%
due
11/01/26
(Þ)
60
64
Las
Vegas
Sands
Corp.
3.200%
due
08/08/24
430
443
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
108
Lockheed
Martin
Corp.
3.100%
due
01/15/23
702
724
Class
Preference
4.500%
due
05/15/36
10
12
Series
10YR
3.550%
due
01/15/26
90
96
Lowe's
Cos.,
Inc.
3.800%
due
11/15/21
240
247
LyondellBasell
Industries
NV
5.750%
due
04/15/24
198
223
Marathon
Petroleum
Corp.
5.000%
due
09/15/54
234
252
Markel
Corp.
4.300%
due
11/01/47
699
728
Mars,
Inc.
2.700%
due
04/01/25
(Þ)
60
61
3.200%
due
04/01/30
(Þ)
30
32
Masco
Corp.
4.450%
due
04/01/25
238
259
McDonald's
Corp.
3.700%
due
01/30/26
60
65
3.500%
due
03/01/27
40
43
3.800%
due
04/01/28
200
218
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
Medtronic,
Inc.
Series
WI
3.150%
due
03/15/22
254
261
3.500%
due
03/15/25
67
72
MetLife,
Inc.
6.400%
due
12/15/36
100
123
Microsoft
Corp.
2.400%
due
02/06/22
721
731
2.875%
due
02/06/24
180
187
2.700%
due
02/12/25
40
41
2.400%
due
08/08/26
200
202
3.300%
due
02/06/27
810
866
4.100%
due
02/06/37
200
236
3.750%
due
02/12/45
100
113
MidAmerican
Energy
Co.
3.700%
due
09/15/23
237
249
3.650%
due
04/15/29
477
521
Midwest
Connector
Capital
Co.
LLC
3.625%
due
04/01/22
(Þ)
267
274
Mondelez
International,
Inc.
3.625%
due
05/07/23
689
722
Morgan
Stanley
3.737%
due
04/24/24
(Ê)
170
178
Series
GMTN
3.772%
due
01/24/29
(Ê)
20
22
4.431%
due
01/23/30
(Ê)
10
11
MPLX,
LP
4.000%
due
03/15/28
40
41
4.800%
due
02/15/29
170
186
4.500%
due
04/15/38
80
81
4.700%
due
04/15/48
140
142
5.500%
due
02/15/49
60
68
Series
WI
4.500%
due
07/15/23
100
106
4.875%
due
06/01/25
40
44
NBCUniversal
Media
LLC
4.375%
due
04/01/21
368
379
2.875%
due
01/15/23
524
538
Nestle
Holdings,
Inc.
3.100%
due
09/24/21
(Þ)
718
734
Netflix,
Inc.
5.375%
due
02/01/21
60
62
Nevada
Power
Co.
5.450%
due
05/15/41
208
265
Series
R
6.750%
due
07/01/37
362
511
Newell
Brands,
Inc.
3.850%
due
04/01/23
40
42
4.200%
due
04/01/26
40
42
NGPL
PipeCo
LLC
7.768%
due
12/15/37
(Þ)
553
713
Noble
Energy,
Inc.
3.900%
due
11/15/24
250
264
3.850%
due
01/15/28
80
84
5.250%
due
11/15/43
10
11
4.950%
due
08/15/47
40
44
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Northern
Natural
Gas
Co.
4.300%
due
01/15/49
(Þ)
631
709
Northrop
Grumman
Corp.
2.550%
due
10/15/22
717
727
2.930%
due
01/15/25
80
82
Series
F0TZ
3.250%
due
01/15/28
310
323
Novartis
Capital
Corp.
2.400%
due
05/17/22
719
729
Oasis
Petroleum,
Inc.
6.875%
due
03/15/22
80
77
6.875%
due
01/15/23
10
10
Occidental
Petroleum
Corp.
4.850%
due
03/15/21
80
82
2.600%
due
08/13/21
60
60
3.125%
due
02/15/22
30
31
2.700%
due
08/15/22
80
81
6.950%
due
07/01/24
10
12
2.900%
due
08/15/24
480
487
3.500%
due
06/15/25
707
730
5.550%
due
03/15/26
230
261
3.400%
due
04/15/26
50
51
3.000%
due
02/15/27
360
361
3.500%
due
08/15/29
200
204
7.875%
due
09/15/31
30
40
6.450%
due
09/15/36
110
135
4.500%
due
07/15/44
125
126
4.625%
due
06/15/45
30
31
6.600%
due
03/15/46
90
116
4.400%
due
04/15/46
20
20
4.100%
due
02/15/47
190
184
4.200%
due
03/15/48
70
69
ONEOK
Partners,
LP
6.125%
due
02/01/41
614
738
ONEOK,
Inc.
7.500%
due
09/01/23
204
238
4.350%
due
03/15/29
506
547
Oracle
Corp.
2.625%
due
02/15/23
719
734
PacifiCorp
5.750%
due
04/01/37
543
717
PepsiCo,
Inc.
2.750%
due
03/05/22
224
229
Pfizer,
Inc.
1.950%
due
06/03/21
728
731
Philip
Morris
International,
Inc.
2.500%
due
08/22/22
90
91
4.500%
due
03/20/42
40
45
Series
5YR
2.500%
due
11/02/22
60
61
Series
NCD
2.375%
due
08/17/22
938
947
Phillips
66
Series
WI
4.300%
due
04/01/22
498
523
Plains
All
American
Pipeline,
LP
/
PAA
Finance
Corp.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
3.600%
due
11/01/24
705
725
PNC
Bank
NA
Series
BKNT
2.150%
due
04/29/21
724
726
Precision
Castparts
Corp.
2.500%
due
01/15/23
240
244
3.900%
due
01/15/43
457
494
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
9.250%
due
05/15/23
(Þ)
35
37
5.250%
due
04/15/24
(Þ)
70
74
5.750%
due
04/15/26
(Þ)
60
65
Procter
&
Gamble
Co.
(The)
2.150%
due
08/11/22
270
273
Progress
Energy,
Inc.
4.400%
due
01/15/21
30
31
7.000%
due
10/30/31
173
236
PSEG
Power
LLC
8.625%
due
04/15/31
170
237
Range
Resources
Corp.
5.875%
due
07/01/22
30
30
Series
WI
4.875%
due
05/15/25
230
197
Regency
Energy
Partners,
LP
/
Regency
Energy
Finance
Corp.
5.875%
due
03/01/22
60
64
5.000%
due
10/01/22
516
547
Reliance
Holdings
USA,
Inc.
5.400%
due
02/14/22
(Þ)
684
723
Republic
Services,
Inc.
2.500%
due
08/15/24
60
61
Reynolds
American,
Inc.
5.850%
due
08/15/45
70
80
Rohm
&
Haas
Co.
7.850%
due
07/15/29
540
721
Sabal
Trail
Transmission
LLC
4.246%
due
05/01/28
(Þ)
663
723
Salesforce.com,
Inc.
3.250%
due
04/11/23
70
73
3.700%
due
04/11/28
30
33
Santander
Holdings,
Inc.
4.500%
due
07/17/25
20
22
3.244%
due
10/05/26
(Þ)
350
353
Schlumberger
Holdings
Corp.
4.000%
due
12/21/25
(Þ)
40
43
Sempra
Energy
3.550%
due
06/15/24
252
264
Service
Properties
Trust
4.375%
due
02/15/30
765
750
Sherwin-Williams
Co.
(The)
3.125%
due
06/01/24
704
727
Sierra
Pacific
Power
Co.
Series
WI
2.600%
due
05/01/26
718
721
Southern
Co.
(The)
2.950%
due
07/01/23
712
730
Southern
Co.
Gas
Capital
Corp.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
6.000%
due
10/01/34
196
247
Spectra
Energy
Partners,
LP
4.750%
due
03/15/24
671
730
Sprint
Capital
Corp.
8.750%
due
03/15/32
260
316
Sprint
Corp.
Series
WI
7.250%
due
09/15/21
50
53
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
3.360%
due
09/20/21
(Þ)
88
88
4.738%
due
03/20/25
(Þ)
240
254
Starbucks
Corp.
3.800%
due
08/15/25
220
237
Sunoco
Logistics
Partners
Operations,
LP
3.450%
due
01/15/23
420
427
4.250%
due
04/01/24
269
283
Synchrony
Financial
3.750%
due
08/15/21
270
276
Sysco
Corp.
2.500%
due
07/15/21
225
227
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
4.250%
due
11/15/23
20
20
5.875%
due
04/15/26
10
11
5.375%
due
02/01/27
10
10
5.500%
due
03/01/30
(Þ)
30
31
Teachers
Insurance
&
Annuity
Association
of
America
4.900%
due
09/15/44
(Þ)
340
417
Thermo
Fisher
Scientific,
Inc.
3.000%
due
04/15/23
706
725
Time
Warner
Cable
LLC
4.125%
due
02/15/21
150
152
7.300%
due
07/01/38
600
781
6.750%
due
06/15/39
20
25
Time
Warner
Entertainment
Co.,
LP
8.375%
due
03/15/23
182
215
TJX
Cos.,
Inc.
(The)
2.750%
due
06/15/21
246
249
Toll
Brothers
Finance
Corp.
4.375%
due
04/15/23
30
31
Transcontinental
Gas
Pipe
Line
Co.
LLC
Series
WI
7.850%
due
02/01/26
220
279
Tyson
Foods,
Inc.
4.500%
due
06/15/22
518
545
3.950%
due
08/15/24
237
254
Unilever
Capital
Corp.
1.375%
due
07/28/21
254
252
2.200%
due
05/05/22
504
507
Union
Pacific
Corp.
2.950%
due
01/15/23
269
276
3.750%
due
07/15/25
60
64
3.950%
due
09/10/28
400
441
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
3.839%
due
03/20/60
(Þ)
140
142
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
130
140
United
Technologies
Corp.
1.950%
due
11/01/21
232
232
3.100%
due
06/01/22
100
103
3.650%
due
08/16/23
616
649
3.950%
due
08/16/25
30
33
4.125%
due
11/16/28
150
169
4.500%
due
06/01/42
20
24
UnitedHealth
Group,
Inc.
2.875%
due
12/15/21
40
41
2.875%
due
03/15/22
720
734
4.625%
due
07/15/35
100
121
5.700%
due
10/15/40
60
79
3.700%
due
08/15/49
160
171
3.875%
due
08/15/59
30
32
US
Bancorp
2.350%
due
01/29/21
728
732
US
Bank
NA
Series
BKNT
3.150%
due
04/26/21
250
254
Valero
Energy
Corp.
10.500%
due
03/15/39
151
254
Verizon
Communications,
Inc.
3.500%
due
11/01/24
20
21
2.625%
due
08/15/26
70
71
4.125%
due
03/16/27
40
44
3.875%
due
02/08/29
120
132
7.750%
due
12/01/30
100
143
4.500%
due
08/10/33
450
525
5.250%
due
03/16/37
80
100
5.500%
due
03/16/47
10
14
Series
WI
2.946%
due
03/15/22
717
733
3.376%
due
02/15/25
178
188
4.329%
due
09/21/28
123
139
ViacomCBS
,
Inc.
3.875%
due
04/01/24
20
21
Visa,
Inc.
2.150%
due
09/15/22
277
280
3.150%
due
12/14/25
150
158
4.300%
due
12/14/45
590
726
Vistra
Operations
Co.
LLC
4.300%
due
07/15/29
(Þ)
708
721
VOC
Escrow,
Ltd.
5.000%
due
02/15/28
(Þ)
60
63
Volkswagen
Group
of
America
Finance
LLC
4.000%
due
11/12/21
(Þ)
699
723
Walgreen
Co.
3.100%
due
09/15/22
716
730
Walgreens
Boots
Alliance,
Inc.
3.300%
due
11/18/21
707
720
Walmart,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.700%
due
06/26/28
230
253
Walt
Disney
Co.
(The)
2.350%
due
12/01/22
240
243
Series
WI
6.650%
due
11/15/37
40
59
Waste
Management,
Inc.
3.500%
due
05/15/24
190
200
2.950%
due
06/15/24
100
103
3.200%
due
06/15/26
100
105
3.450%
due
06/15/29
120
128
4.150%
due
07/15/49
40
46
Wells
Fargo
&
Co.
2.500%
due
03/04/21
1,129
1,137
4.600%
due
04/01/21
220
227
3.157%
due
10/31/23
(Ê)
200
204
3.750%
due
01/24/24
535
565
3.000%
due
04/22/26
400
411
3.000%
due
10/23/26
260
266
4.150%
due
01/24/29
545
606
2.879%
due
10/30/30
(Ê)
260
261
5.375%
due
11/02/43
200
256
4.650%
due
11/04/44
10
12
4.400%
due
06/14/46
230
263
4.750%
due
12/07/46
530
635
Series
GMTN
4.900%
due
11/17/45
250
305
Wells
Fargo
Bank
NA
Series
BKNT
2.600%
due
01/15/21
725
730
Western
Midstream
Operating,
LP
4.650%
due
07/01/26
40
41
5.300%
due
03/01/48
845
737
Williams
Cos.,
Inc.
(The)
7.750%
due
06/15/31
130
173
8.750%
due
03/15/32
517
743
5.800%
due
11/15/43
155
184
Series
A
7.500%
due
01/15/31
80
104
WPX
Energy,
Inc.
5.250%
due
10/15/27
10
11
161,678
International
Debt
-
10.3%
1011778
B.C.
Unlimited
Liability
Co.
Term
Loan
B4
3.549%
due
11/14/26
(Ê)
362
363
1011778
BC
ULC
/
New
Red
Finance,
Inc.
4.250%
due
05/15/24
(Þ)
120
123
ABN
AMRO
Bank
NV
2.650%
due
01/19/21
(Þ)
725
729
Abu
Dhabi
Government
International
Bond
Series
C
2.500%
due
10/11/22
(Þ)
200
202
Adani
Abbot
Point
Terminal
Pty,
Ltd.
4.450%
due
12/15/22
(Þ)
253
257
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
Series
WI
5.000%
due
10/01/21
652
684
Air
Liquide
Finance
SA
1.750%
due
09/27/21
(Þ)
733
730
Alcoa
Nederland
Holding
BV
6.750%
due
09/30/24
(Þ)
200
210
Alibaba
Group
Holding,
Ltd.
Series
WI
3.125%
due
11/28/21
616
628
Alimentation
Couche-Tard,
Inc.
3.550%
due
07/26/27
(Þ)
702
721
Allergan
Funding
SCS
3.450%
due
03/15/22
285
292
3.800%
due
03/15/25
60
63
4.550%
due
03/15/35
10
11
Altrice
France
SA
Term
Loan
B12
5.427%
due
01/31/26
(Ê)
86
86
Ambac
LSNI
LLC
6.945%
due
02/12/23
(Ê)(Þ)
3,947
3,998
Anglo
American
Capital
PLC
3.750%
due
04/10/22
(Þ)
368
378
3.625%
due
09/11/24
(Þ)
200
207
ArcelorMittal
SA
6.250%
due
02/25/22
110
119
3.600%
due
07/16/24
110
113
6.125%
due
06/01/25
170
195
4.550%
due
03/11/26
50
53
Argentine
Republic
Government
International
Bond
5.625%
due
01/26/22
340
176
6.875%
due
01/11/48
210
101
Series
NY
5.250%
due
12/31/38
(~)(Ê)
160
78
Series
WI
7.500%
due
04/22/26
170
88
AstraZeneca
PLC
2.375%
due
06/12/22
403
407
Banco
de
Bogota
SA
Series
EMTQ
4.375%
due
08/03/27
(Þ)
686
726
Banco
de
Credito
del
Peru
4.250%
due
04/01/23
(Þ)
693
730
Banco
Santander
SA
3.848%
due
04/12/23
200
209
2.706%
due
06/27/24
400
405
4.379%
due
04/12/28
200
219
Bancolombia
SA
5.950%
due
06/03/21
684
718
Bangkok
Bank
PCL
3.875%
due
09/27/22
(Þ)
219
227
Banistmo
SA
Series
MTQ0
3.650%
due
09/19/22
(Þ)
729
736
Bank
of
Montreal
2.900%
due
03/26/22
270
275
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.803%
due
12/15/32
(Ê)
20
21
Series
D
3.100%
due
04/13/21
519
527
Bank
of
Nova
Scotia
(The)
Series
BKNT
2.450%
due
03/22/21
724
730
Barclays
PLC
4.972%
due
05/16/29
(Ê)
400
450
4.950%
due
01/10/47
660
775
BBVA
Bancomer
SA
6.500%
due
03/10/21
(Þ)
695
725
Bharti
Airtel
International
Netherlands
BV
Series
144a
5.125%
due
03/11/23
(Þ)
693
727
BHP
Billiton
Finance
USA,
Ltd.
2.875%
due
02/24/22
5
5
5.000%
due
09/30/43
170
217
BNP
Paribas
SA
4.705%
due
01/10/25
(Ê)(Þ)
260
281
4.400%
due
08/14/28
(Þ)
200
222
Series
144a
5.198%
due
01/10/30
(Ê)(Þ)
570
669
BP
Capital
Markets
PLC
3.245%
due
05/06/22
222
228
Brazil
Government
International
Bond
2.625%
due
01/05/23
220
220
4.625%
due
01/13/28
990
1,063
5.625%
due
01/07/41
170
190
5.000%
due
01/27/45
350
364
British
Telecommunications
PLC
9.625%
due
12/15/30
30
46
Brookfield
Finance,
Inc.
4.000%
due
04/01/24
618
662
Canadian
Imperial
Bank
of
Commerce
2.550%
due
06/16/22
718
728
Cedar
Funding,
Ltd.
Series
2018-5A
Class
A1R
3.102%
due
07/17/31
(Ê)(Þ)
1,600
1,598
Celulosa
Arauco
y
Constitucion
SA
Series
WI
3.875%
due
11/02/27
705
708
Cencosud
SA
5.500%
due
01/20/21
(Þ)
264
270
Colombia
Government
International
Bond
5.625%
due
02/26/44
270
335
Cooperatieve
Rabobank
UA
4.625%
due
12/01/23
250
271
4.375%
due
08/04/25
900
976
Covidien
International
Finance
SA
3.200%
due
06/15/22
703
722
Credit
Suisse
Group
Funding
Guernsey,
Ltd.
Series
WI
3.450%
due
04/16/21
709
721
4.875%
due
05/15/45
300
378
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
DAE
Funding
LLC
5.750%
due
11/15/23
(Þ)
20
21
Danone
SA
2.077%
due
11/02/21
(Þ)
890
891
2.589%
due
11/02/23
(Þ)
718
729
Danske
Bank
A/S
5.000%
due
01/12/22
(Þ)
400
420
3.875%
due
09/12/23
(Þ)
200
208
5.375%
due
01/12/24
(Þ)
862
945
Deutsche
Telekom
International
Finance
BV
1.950%
due
09/19/21
(Þ)
251
251
DNB
Bank
ASA
2.375%
due
06/02/21
(Þ)
550
554
DP
World
PLC
5.625%
due
09/25/48
(Þ)
200
231
Dryden
50
Senior
Loan
Fund
Series
2017-50A
Class
A1
3.221%
due
07/15/30
(Ê)(Þ)
1,230
1,226
ECAF,
Ltd.
Series
2015-1A
Class
A1
3.473%
due
06/15/40
(Þ)
268
267
Ecopetrol
SA
5.375%
due
06/26/26
60
67
5.875%
due
05/28/45
350
413
Ecuador
Government
International
Bond
7.875%
due
01/23/28
(Þ)
200
178
Embotelladora
Andina
SA
5.000%
due
10/01/23
(Þ)
264
282
Enbridge,
Inc.
3.700%
due
07/15/27
687
727
Enel
Finance
International
NV
Series
658A
3.500%
due
04/06/28
(Þ)
706
722
Eni
SpA
4.250%
due
05/09/29
(Þ)
658
722
Equate
Petrochemical
BV
4.250%
due
11/03/26
(Þ)
200
214
Fairfax
Financial
Holdings,
Ltd.
Series
WI
4.850%
due
04/17/28
226
246
Four
Seasons
Hotels,
Ltd.
1st
Lien
Term
Loan
B
0.000%
due
11/30/23
(Ê)
100
100
Garda
World
Security
Corp.
1st
Lien
Term
Loan
B
6.660%
due
10/17/26
(Ê)
100
101
Gazprom
PJSC
Via
Gaz
Capital
SA
6.510%
due
03/07/22
(Þ)
672
729
GE
Capital
International
Funding
Co.
Unlimited
Co.
Series
WI
4.418%
due
11/15/35
600
639
GFL
Environmental,
Inc.
1st
Lien
Term
Loan
B
4.799%
due
05/31/25
(Ê)
40
40
GlaxoSmithKline
Capital
PLC
2.850%
due
05/08/22
256
261
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.875%
due
06/01/22
510
521
Goldentree
Loan
Management
US
CLO
2,
Ltd.
Series
2017-2A
Class
A
3.116%
due
11/28/30
(Ê)(Þ)
1,860
1,858
Heineken
NV
3.400%
due
04/01/22
(Þ)
710
731
HSBC
Bank
PLC
7.650%
due
05/01/25
375
453
HSBC
Holdings
PLC
2.650%
due
01/05/22
721
729
3.900%
due
05/25/26
220
234
4.041%
due
03/13/28
(Ê)
410
438
4.583%
due
06/19/29
(Ê)
400
447
3.973%
due
05/22/30
(Ê)
200
215
6.250%
due
12/31/99
(Ê)(ƒ)
200
212
6.500%
due
12/31/99
(Ê)(ƒ)
200
220
ICICI
Bank,
Ltd.
4.000%
due
03/18/26
(Þ)
252
262
Indonesia
Government
International
Bond
3.500%
due
01/11/28
210
219
4.350%
due
01/11/48
240
264
3.700%
due
10/30/49
540
554
Series
REGS
3.750%
due
04/25/22
430
444
Intelsat
Jackson
Holdings
SA
Term
Loan
B3
5.682%
due
11/27/23
(Ê)
90
90
Intesa
Sanpaolo
SpA
3.125%
due
07/14/22
(Þ)
400
405
3.375%
due
01/12/23
(Þ)
200
203
3.875%
due
01/12/28
(Þ)
287
288
Inversiones
CMPC
SA
4.500%
due
04/25/22
(Þ)
214
221
KazMunayGas
National
Co.
JSC
5.375%
due
04/24/30
(Þ)
200
232
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
226
LCM
XXIII,
Ltd.
Series
2016-23A
Class
A1
3.748%
due
10/20/29
(Ê)(Þ)
1,020
1,020
LCM
XXV,
Ltd.
Series
2017-25A
Class
A
3.176%
due
07/20/30
(Ê)(Þ)
1,124
1,120
Lloyds
Banking
Group
PLC
4.375%
due
03/22/28
200
220
4.550%
due
08/16/28
400
448
Series
WI
4.582%
due
12/10/25
688
744
Lukoil
International
Finance
BV
4.563%
due
04/24/23
(Þ)
682
723
LYB
Finance
Co.
BV
8.100%
due
03/15/27
(Þ)
186
238
LYB
International
Finance
BV
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
4.000%
due
07/15/23
214
226
Madison
Park
Funding
XIII,
Ltd.
Series
2018-13A
Class
AR2
3.542%
due
04/19/30
(Ê)(Þ)
574
574
Madison
Park
Funding
XVIII,
Ltd.
Series
2017-18A
Class
A1R
3.156%
due
10/21/30
(Ê)(Þ)
872
872
Madison
Park
Funding
XXVI,
Ltd.
Series
2017-26A
Class
AR
3.128%
due
07/29/30
(Ê)(Þ)
780
780
Magnetite
XVIII,
Ltd.
Series
2018-18A
Class
AR
3.696%
due
11/15/28
(Ê)(Þ)
1,488
1,487
Marks
And
Spencer
PLC
7.125%
due
12/01/37
(Þ)
623
704
Mexico
Government
International
Bond
6.050%
due
01/11/40
30
39
4.750%
due
03/08/44
20
22
4.350%
due
01/15/47
810
855
Mitsubishi
UFJ
Financial
Group,
Inc.
2.950%
due
03/01/21
725
733
2.998%
due
02/22/22
60
61
Mondelez
International
Holdings
Netherlands
BV
2.000%
due
10/28/21
(Þ)
726
726
NBK
SPC,
Ltd.
2.750%
due
05/30/22
(Þ)
714
719
Nordea
Bank
AB
4.875%
due
05/13/21
(Þ)
265
275
Nutrien
,
Ltd.
3.625%
due
03/15/24
264
276
NXP
BV
/
NXP
Funding
LLC
4.625%
due
06/15/22
(Þ)
693
730
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
6.550%
due
03/14/37
30
44
5.625%
due
11/18/50
160
234
Petrobras
Global
Finance
BV
6.250%
due
03/17/24
100
112
Series
WI
5.299%
due
01/27/25
2,205
2,406
Petroleos
Mexicanos
6.625%
due
06/15/35
10
10
Series
WI
4.625%
due
09/21/23
100
104
6.875%
due
08/04/26
220
242
Poland
Government
International
Bond
5.125%
due
04/21/21
550
573
Prosus
NV
4.850%
due
07/06/27
(Þ)
250
272
Provincia
de
Buenos
Aires
6.500%
due
02/15/23
(Þ)
140
58
Qatar
Government
International
Bond
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.817%
due
03/14/49
(Þ)
410
507
Riserva
CLO,
Ltd.
Series
2019-3A
Class
AR
3.143%
due
10/18/28
(Ê)(Þ)
940
940
Royal
Bank
of
Canada
Series
GMTN
3.200%
due
04/30/21
70
71
2.750%
due
02/01/22
500
509
Royal
Bank
of
Scotland
Group
PLC
6.125%
due
12/15/22
70
77
3.875%
due
09/12/23
200
209
5.125%
due
05/28/24
420
455
4.519%
due
06/25/24
(Ê)
200
212
4.269%
due
03/22/25
(Ê)
200
212
Sands
China,
Ltd.
Series
WI
5.125%
due
08/08/25
400
439
Sanofi
4.000%
due
03/29/21
232
238
Santander
PLC
5.000%
due
11/07/23
(Þ)
676
727
Santander
UK
Group
Holdings
PLC
Class
N
4.750%
due
09/15/25
(Þ)
701
752
Sasol
Financing
International,
Ltd.
4.500%
due
11/14/22
698
720
Schneider
Electric
SE
2.950%
due
09/27/22
(Þ)
200
205
Shackleton
CLO,
Ltd.
Series
2018-4RA
Class
A1A
3.001%
due
04/13/31
(Ê)(Þ)
930
917
Shell
International
Finance
BV
1.875%
due
05/10/21
524
524
2.375%
due
08/21/22
269
273
2.875%
due
05/10/26
40
41
4.375%
due
05/11/45
320
382
4.000%
due
05/10/46
80
91
Siemens
Financieringsmaatschappij
NV
1.700%
due
09/15/21
(Þ)
250
250
Societe
Generale
SA
5.000%
due
01/17/24
(Þ)
700
754
Southern
Copper
Corp.
6.750%
due
04/16/40
10
13
5.250%
due
11/08/42
590
677
Standard
Chartered
PLC
5.700%
due
03/26/44
(Þ)
600
770
Stars
Group
Holdings
BV
Term
Loan
B
5.445%
due
07/10/25
(Ê)
9
9
Sumitomo
Mitsui
Financial
Group,
Inc.
2.934%
due
03/09/21
723
731
Series
5FXD
2.058%
due
07/14/21
90
90
Suncor
Energy,
Inc.
3.600%
due
12/01/24
688
730
Svenska
Handelsbanken
AB
Series
BKNT
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
3.350%
due
05/24/21
250
255
Swedbank
AB
2.650%
due
03/10/21
(Þ)
797
802
Syngenta
Finance
NV
3.125%
due
03/28/22
718
725
Telefonica
Emisiones
SA
5.213%
due
03/08/47
150
178
Teva
Pharmaceutical
Finance
Co.
BV
2.950%
due
12/18/22
10
10
Series
2
3.650%
due
11/10/21
10
10
Teva
Pharmaceutical
Finance
IV
BV
3.650%
due
11/10/21
20
20
Teva
Pharmaceutical
Finance
Netherlands
III
BV
2.200%
due
07/21/21
210
203
2.800%
due
07/21/23
220
204
THL
Credit
Wind
River
CLO,
Ltd.
Series
2017-2A
Class
AR
3.233%
due
10/18/30
(Ê)(Þ)
1,016
1,012
Toronto-Dominion
Bank
(The)
3.250%
due
06/11/21
90
92
1.800%
due
07/13/21
733
733
Total
Capital
Canada,
Ltd.
2.750%
due
07/15/23
770
789
Total
Capital
International
SA
2.750%
due
06/19/21
718
727
2.700%
due
01/25/23
713
728
Total
Capital
SA
4.250%
due
12/15/21
230
240
Trust
F/1401
5.250%
due
01/30/26
(Þ)
685
736
UBS
Group
AG
3.491%
due
05/23/23
(Þ)
270
278
3.126%
due
08/13/30
(Ê)(Þ)
200
203
7.000%
due
12/31/99
(Ê)(ƒ)(Þ)
660
721
UBS
Group
Funding
Switzerland
AG
4.253%
due
03/23/28
(Þ)
200
218
UniCredit
SpA
6.572%
due
01/14/22
(Þ)
1,042
1,118
Vale
Overseas,
Ltd.
6.875%
due
11/21/36
180
234
Vodafone
Group
PLC
4.375%
due
05/30/28
220
244
Voya
CLO,
Ltd.
Series
2017-2A
Class
A1R
3.252%
due
04/17/30
(Ê)(Þ)
1,964
1,959
Woori
Bank
5.875%
due
04/13/21
(Þ)
681
710
Ziggo
Secured
Finance
Partnership
1st
Lien
Term
Loan
E
4.240%
due
04/15/25
(Ê)
46
46
94,556
Loan
Agreements
-
1.3%
Air
Medical
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
5.035%
due
04/28/22
(Ê)
116
113
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Albertson's
LLC
Term
Loan
B7
4.549%
due
11/17/25
(Ê)
79
80
Albertson's
LLC
Term
Loan
B8
4.549%
due
08/17/26
(Ê)
88
89
Allied
Universal
Holdco
Delayed
Draw
Term
Loan
6.055%
due
07/12/26
(Ê)
29
29
Allied
Universal
Holdco
Term
Loan
B
6.049%
due
07/12/26
(Ê)
295
297
AMC
Entertainment
Holdings,
Inc.
Term
Loan
B
4.800%
due
04/22/26
(Ê)
40
40
American
Airlines,
Inc.
1st
Lien
Term
Loan
B
3.740%
due
12/14/23
(Ê)
69
69
APi
Group
DE,
Inc.
Term
Loan
B
4.299%
due
10/01/26
(Ê)
320
322
Aramark
Services,
Inc.
1st
Lien
Term
Loan
B3
3.549%
due
03/11/25
(Ê)
48
48
Asurion
LLC
1st
Lien
Term
Loan
B7
4.799%
due
11/03/24
(Ê)
189
190
Asurion
LLC
Term
Loan
B4
4.799%
due
08/04/22
(Ê)
126
127
Atlantic
Aviation
FBO,
Inc.
Term
Loan
B
5.550%
due
12/06/25
(Ê)
20
20
Avolon
LLC
1st
Lien
Term
Loan
B3
3.515%
due
01/15/25
(Ê)
160
161
Bausch
Health
Americas,
Inc.
Term
Loan
B
4.740%
due
06/01/25
(Ê)
87
87
BCP
CC
Holdings
Merger
Sub,
Inc.
Term
Loan
B1
4.695%
due
12/01/24
(Ê)
50
50
Berry
Global,
Inc.
Term
Loan
W
3.715%
due
10/01/22
(Ê)
134
134
Blackstone
CQP
Holdco,
LP
Term
Loan
B
5.408%
due
09/30/24
(Ê)
40
40
Boyd
Gaming
Corp.
Term
Loan
B
3.853%
due
09/15/23
(Ê)
6
7
Brickman
Group,
Ltd.
1st
Lien
Term
Loan
B
4.278%
due
08/15/25
(Ê)
39
40
Caesars
Entertainment
Operating
Co.
LLC
1st
Lien
Term
Loan
B
3.799%
due
10/06/24
(Ê)
134
135
Caesars
Resort
Collection
LLC
1st
Lien
Term
Loan
B
4.549%
due
12/22/24
(Ê)
139
139
Change
Healthcare
Holdings
LLC
1st
Lien
Term
Loan
B
4.299%
due
03/01/24
(Ê)
317
318
Charter
Communications,
Inc.
Term
Loan
B1
3.550%
due
04/30/25
(Ê)
327
329
Citadel
Securities,
LP
Term
Loan
B
5.299%
due
02/27/26
(Ê)
269
270
CityCenter
Holdings
LLC
Term
Loan
B
4.049%
due
04/18/24
(Ê)
32
32
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
CSC
Holdings
LLC
2019
Term
Loan
B5
4.240%
due
04/15/27
(Ê)
50
50
Dcert
Buyer,
Inc.
Term
Loan
B
5.799%
due
08/08/26
(Ê)
330
331
Dell
International
LLC
Term
Loan
B
3.800%
due
09/19/25
(Ê)
227
228
Diamond
Sports
Group
LLC
Term
Loan
5.030%
due
08/24/26
(Ê)
40
40
Edelman
Financial
Center
LLC
Term
Loan
B1
5.035%
due
07/19/25
(Ê)
69
70
Focus
Financial
Partners
LLC
1st
Lien
Term
Loan
B2
4.299%
due
07/03/24
(Ê)
130
130
Genesee
&
Wyoming,
Inc.
Term
Loan
0.000%
due
11/06/26
(~)(Ê)
250
252
Golden
Nugget,
Inc.
1st
Lien
Term
Loan
B
4.695%
due
10/04/23
(Ê)
268
269
Grifols
Worldwide
Operations
USA,
Inc.
1st
Lien
Term
Loan
B
0.000%
due
11/15/27
(~)(Ê)
180
181
HCA,
Inc.
Term
Loan
B12
3.549%
due
03/13/25
(Ê)
47
48
Hilton
Worldwide
Finance
LLC
Term
Loan
B
3.542%
due
06/21/26
(Ê)
285
287
iHeartCommunications
,
Inc.
Exit
Term
Loan
5.691%
due
05/01/26
(Ê)
259
261
Intrawest
Resorts
Holdings,
Inc.
1st
Lien
Term
Loan
B1
4.549%
due
07/31/24
(Ê)
139
140
Jaguar
Holding
Co.
II
1st
Lien
Term
Loan
4.299%
due
08/18/22
(Ê)
186
187
Jane
Street
Group
LLC
Term
Loan
B
4.799%
due
08/25/22
(Ê)
319
318
Level
3
Financing,
Inc.
Term
Loan
B
3.549%
due
03/01/27
(Ê)
148
149
LPL
Holdings,
Inc.
Term
Loan
B1
3.542%
due
11/12/26
(Ê)
14
15
MA
Finance
Co.
LLC
1st
Lien
Term
Loan
B
0.000%
due
06/21/24
(Ê)
4
4
McAfee
LLC
Term
Loan
B1
5.555%
due
09/29/24
(Ê)
329
330
MGM
Growth
Properties
LLC
1st
Lien
Term
Loan
B
3.799%
due
03/25/25
(Ê)
92
92
Michaels
Stores,
Inc.
1st
Lien
Term
Loan
B
4.301%
due
01/28/23
(Ê)
78
75
MultiPlan
,
Inc.
Term
Loan
B
4.695%
due
05/25/23
(Ê)
197
194
Nexstar
Broadcasting,
Inc.
Term
Loan
B4
4.452%
due
09/19/26
(Ê)
350
350
Option
Care
Helath
,
Inc.
Term
Loan
B
6.299%
due
08/06/26
(Ê)
320
318
Panther
BF
Aggregator,
LP
Term
Loan
B
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.305%
due
04/30/26
(Ê)
319
320
Party
City
Holdings,
Inc.
1st
Lien
Term
Loan
4.300%
due
08/19/22
(Ê)
64
59
PCI
Gaming
Authority
Term
Loan
4.299%
due
05/31/26
(Ê)
81
82
Phoenix
Guarantor,
Inc.
Term
Loan
B1
6.210%
due
03/05/26
(Ê)
123
124
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
Term
Loan
B1
4.944%
due
09/23/26
(Ê)
255
256
RegionalCare
Hospital
Partners
Holdings,
Inc.
Term
Loan
B
6.299%
due
11/16/25
(Ê)
339
340
Reynolds
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
4.549%
due
02/05/23
(Ê)
323
324
RPI
Finance
Trust
Term
Loan
B
3.799%
due
04/17/23
(Ê)
246
248
Scientific
Games
International,
Inc.
1st
Lien
Term
Loan
B5
4.549%
due
08/14/24
(Ê)
313
313
Seattle
SpinCo,
Inc.
1st
Lien
Term
Loan
B3
4.299%
due
06/21/24
(Ê)
26
26
Sotera
Health
Holdings
LLC
Term
Loan
6.289%
due
11/20/26
(Ê)
340
341
Sprint
Corp.
Term
Loan
B
4.313%
due
02/03/24
(Ê)
47
46
Sungard
AS
New
Holdings
III
LLC
Term
Loan
5.945%
due
02/03/22
(Ê)
39
36
Sungard
Availability
Services
Capital,
Inc.
Term
Loan
5.891%
due
11/03/22
(Ê)
125
74
TKC
Holdings,
Inc.
1st
Lien
Term
Loan
5.550%
due
02/01/23
(Ê)
218
201
Trans
Union
LLC
Term
Loan
B5
3.549%
due
11/13/26
(Ê)
99
99
UFC
Holdings
LLC
Term
Loan
5.500%
due
04/29/26
(Ê)
219
220
Univision
Communications,
Inc.
Term
Loan
C5
4.549%
due
03/15/24
(Ê)
145
143
VFH
Parent
LLC
Term
Loan
B
5.197%
due
03/01/26
(Ê)
322
323
VICI
Properties,
Inc.
1st
Lien
Term
Loan
B
3.785%
due
12/22/24
(Ê)
116
117
Virgin
Media
Secured
Finance
PLC
Term
Loan
4.240%
due
01/04/28
(Ê)
197
198
VVC
Holdings
Corp.
Term
Loan
B
6.401%
due
02/11/26
(Ê)
318
320
Western
Digital
Corp.
1st
Lien
Term
Loan
B4
3.452%
due
04/29/23
(Ê)
37
37
Wynn
Resorts
Finance
LLC
Term
Loan
A
3.404%
due
09/20/24
(~)(Ê)
360
359
12,091
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
Mortgage-Back
ed
Securities
-
30.6%
A10
Securitization
LLC
Series
2017-AA
Class
B1
0.071%
due
05/15/36
(Þ)
961
955
American
Home
Mortgage
Investment
Trust
Series
2004-4
Class
4A
3.844%
due
02/25/45
(Ê)
11
11
Banc
of
America
Funding
Trust
Series
2005-D
Class
A1
4.633%
due
05/25/35
(~)(Ê)
260
265
Series
2006-6
Class
2A1
6.000%
due
08/25/36
783
771
Bayview
Commercial
Asset
Trust
Series
2007-2A
Class
A1
1.507%
due
07/25/37
(Ê)(Þ)
952
905
BCAP
LLC
Trust
Series
2010-RR7
Class
3A12
3.997%
due
08/26/35
(~)(Ê)(Þ)
761
704
Bear
Stearns
ALT-A
Trust
Series
2005-2
Class
1M1
3.236%
due
03/25/35
(Ê)
736
724
Bear
Stearns
ARM
Trust
Series
2004-3
Class
2A
4.017%
due
07/25/34
(~)(Ê)
123
125
Bear
Stearns
Commercial
Mortgage
Securities
Trust
Series
2007-T26
Class
AM
5.513%
due
01/12/45
(~)(Ê)
72
72
Benchmark
Mortgage
Trust
Series
2018-B5
Class
A3
3.944%
due
07/15/51
1,977
2,167
Series
2018-B5
Class
A4
4.208%
due
07/15/51
1,987
2,221
Series
2018-B7
Class
A4
4.510%
due
05/15/53
(~)(Ê)
1,567
1,792
Series
2018-B8
Class
A5
4.232%
due
01/15/52
2,315
2,599
BX
Commercial
Mortgage
Trust
Series
2018-BILT
Class
C
3.120%
due
05/15/30
(Ê)(Þ)
1,650
1,641
Series
2018-BIOA
Class
D
3.628%
due
03/15/37
(Ê)(Þ)
790
791
Series
2018-BIOA
Class
E
4.424%
due
03/15/37
(Ê)(Þ)
1,575
1,574
Series
2018-IND
Class
G
4.330%
due
11/15/35
(Ê)(Þ)
133
133
Series
2019-XL
Class
A
2.920%
due
10/15/36
(Ê)(Þ)
1,100
1,101
BXP
Trust
Series
2017-GM
Class
A
3.379%
due
06/13/39
(Þ)
818
857
CAMB
Commercial
Mortgage
Trust
Series
2019-LIFE
Class
F
5.050%
due
12/15/37
(Ê)(Þ)
987
992
Series
2019-LIFE
Class
G
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.750%
due
12/15/37
(Ê)(Þ)
1,651
1,661
CHL
Mortgage
Pass-Through
Trust
Series
2005-3
Class
1A2
3.066%
due
04/25/35
(Ê)
7
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
(~)(Ê)(Þ)
1,418
1,428
Series
2019-SST2
Class
F
4.940%
due
12/15/36
(Ê)(Þ)
430
431
Citigroup
Mortgage
Loan
Trust,
Inc.
Series
2005-2
Class
1A2A
4.913%
due
05/25/35
(~)(Ê)
246
254
Series
2005-11
Class
A2A
4.820%
due
10/25/35
(Ê)
5
5
Series
2015-2
Class
5A1
2.740%
due
03/25/47
(Ê)(Þ)
142
143
Commercial
Mortgage
Trust
Series
2013-300P
Class
A1
4.353%
due
08/10/30
(Þ)
195
206
Series
2013-CR6
Class
B
3.397%
due
03/10/46
(Þ)
211
215
Series
2014-277P
Class
A
3.732%
due
08/10/49
(~)(Ê)(Þ)
205
216
Series
2015-LC19
Class
A4
3.183%
due
02/10/48
1,438
1,490
Series
2016-GCT
Class
A
2.681%
due
08/10/29
(Þ)
140
140
Series
2018-COR3
Class
A3
4.228%
due
05/10/51
2,944
3,278
Series
2019-521F
Class
A
3.380%
due
06/15/34
(Ê)(Þ)
1,203
1,202
Series
2019-521F
Class
D
4.030%
due
06/15/34
(Ê)(Þ)
899
899
CORE
Mortgage
Trust
Series
2019-CORE
Class
D
3.564%
due
12/15/31
(Ê)(Þ)
1,520
1,519
Countrywide
Alternative
Loan
Trust
Series
2007-16CB
Class
1A5
2.886%
due
08/25/37
(Ê)
416
315
Credit
Suisse
Mortgage
Capital
Certificates
Series
2017-CHOP
Class
G
8.093%
due
07/15/32
(Ê)(Þ)
600
600
Series
2019-ICE4
Class
A
2.745%
due
05/15/36
(Ê)(Þ)
800
802
Series
2019-ICE4
Class
E
4.613%
due
05/15/36
(Ê)(Þ)
1,282
1,284
Credit
Suisse
Mortgage
Securities
Corp.
Trust
1.000%
due
12/15/22
680
680
Credit
Suisse
Mortgage
Trust
Series
2018-J1
Class
A2
3.500%
due
02/25/48
(~)(Ê)(Þ)
1,080
1,101
DBGS
Mortgage
Trust
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
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
$
Series
2019-1735
Class
D
4.194%
due
04/10/37
(~)(Ê)(Þ)
985
1,046
Deutsche
Bank
Commercial
Mortgage
Trust
Series
2016-C3
Class
A5
2.890%
due
08/10/49
240
245
Deutsche
Mortgage
Securities,
Inc.
Re-
REMIC
Trust
Series
2007-WM1
Class
A1
3.685%
due
06/27/37
(~)(Ê)(Þ)
425
435
Fannie
Mae
4.250%
due
2021
395
403
4.283%
due
2021
383
392
4.500%
due
2024
2
3
4.500%
due
2025
117
124
2.560%
due
2028
370
375
3.640%
due
2028
100
108
2.520%
due
2029
20
20
2.740%
due
2029
100
103
2.790%
due
2029
300
309
3.160%
due
2029
50
52
3.240%
due
2029
90
95
3.260%
due
2029
30
32
3.350%
due
2029
20
21
3.500%
due
2030
101
104
2.600%
due
2031
375
374
2.670%
due
2031
100
101
2.765%
due
2031
100
102
2.770%
due
2031
100
102
2.810%
due
2031
100
102
2.850%
due
2031
100
103
2.860%
due
2031
100
103
5.000%
due
2031
100
107
3.000%
due
2032
67
68
6.000%
due
2032
20
23
3.000%
due
2033
910
937
3.500%
due
2033
676
708
5.000%
due
2033
5
6
3.500%
due
2034
1,390
1,451
5.500%
due
2034
17
19
4.500%
due
2035
395
426
3.000%
due
2037
81
83
5.500%
due
2037
104
117
5.500%
due
2038
453
510
6.000%
due
2039
41
47
4.000%
due
2040
276
299
5.500%
due
2040
525
588
6.000%
due
2040
121
138
4.000%
due
2041
457
490
6.000%
due
2041
128
147
3.500%
due
2043
1,219
1,281
4.000%
due
2044
929
1,013
3.500%
due
2045
1,544
1,617
3.000%
due
2046
871
892
3.500%
due
2046
261
275
4.000%
due
2046
1,417
1,517
4.500%
due
2046
494
548
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.000%
due
2047
3,897
3,992
3.500%
due
2047
2,594
2,724
4.000%
due
2047
1,553
1,634
4.500%
due
2047
538
569
3.500%
due
2048
817
849
4.500%
due
2048
3,660
3,863
5.000%
due
2048
668
714
2.500%
due
2049
2,100
2,076
3.000%
due
2049
21,712
22,121
3.500%
due
2049
21,072
21,704
4.000%
due
2049
9,472
9,853
4.500%
due
2049
834
887
3.000%
due
2050
1,800
1,825
4.000%
due
2056
1,112
1,192
4.500%
due
2056
276
299
5.500%
due
2056
257
280
3.500%
due
2057
803
845
4.000%
due
2057
150
161
4.500%
due
2057
237
257
30
Year
TBA(Ï)
3.000%
3,800
3,851
3.500%
200
206
Fannie
Mae
Aces
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
159
Series
2019-M6
Class
A2
3.450%
due
01/01/29
170
182
Fannie
Mae
Connecticut
Avenue
Securities
Series
2014-C02
Class
1M2
5.086%
due
05/25/24
(Ê)
812
845
Series
2014-C03
Class
1M2
5.486%
due
07/25/24
(Ê)
1,545
1,625
Series
2014-C04
Class
1M2
6.723%
due
11/25/24
(Ê)
767
842
Series
2016-C04
Class
1M2
6.073%
due
01/25/29
(Ê)
50
53
Series
2019-R07
Class
1M2
3.923%
due
10/25/39
(Ê)(Þ)
670
676
Fannie
Mae
REMIC
Trust
Series
2004-W5
Class
A1
6.000%
due
02/25/47
155
178
Fannie
Mae
REMICS
Series
1999-56
Class
Z
7.000%
due
12/18/29
9
10
Series
2005-24
Class
ZE
5.000%
due
04/25/35
187
205
Series
2012-35
Class
SC
Interest
Only
STRIP
4.015%
due
04/25/42
(Ê)
22
4
Series
2012-55
Class
PC
3.500%
due
05/25/42
668
690
Series
2013-54
Class
BS
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
98
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Interest
Only
STRIP
3.665%
due
06/25/43
(Ê)
96
20
Series
2013-124
Class
SB
Interest
Only
STRIP
3.465%
due
12/25/43
(Ê)
107
20
Series
2016-23
Class
ST
Interest
Only
STRIP
3.515%
due
11/25/45
(Ê)
358
75
Series
2016-61
Class
BS
Interest
Only
STRIP
3.615%
due
09/25/46
(Ê)
305
48
Series
2017-76
Class
SB
Interest
Only
STRIP
3.615%
due
10/25/57
(Ê)
341
68
Series
2017-85
Class
SC
Interest
Only
STRIP
3.715%
due
11/25/47
(Ê)
68
11
Fannie
Mae-Aces
Series
2013-M6
Class
1AC
3.828%
due
02/25/43
(~)(Ê)
89
94
Series
2018-M9
Class
APT2
3.124%
due
04/25/28
(~)(Ê)
200
210
Series
2019-M1
Class
A2
3.673%
due
09/25/28
(~)(Ê)
70
76
Series
2019-M19
Class
A2
2.560%
due
09/25/29
539
540
Series
2019-M23
Class
3A3
2.720%
due
10/25/31
(~)(Ê)
200
201
Series
2019-M27
Class
A2
2.700%
due
11/25/40
100
98
Series
2019-M28
Class
AV
2.232%
due
02/25/27
300
296
Flagstar
Mortgage
Trust
Series
2017-2
Class
A5
3.500%
due
10/25/47
(~)(Ê)(Þ)
671
674
Series
2018-2
Class
A4
3.500%
due
04/25/48
(~)(Ê)(Þ)
270
275
Freddie
Mac
3.500%
due
2030
104
108
3.000%
due
2032
228
235
3.000%
due
2033
1,208
1,243
4.500%
due
2034
151
163
3.000%
due
2038
166
170
5.500%
due
2038
330
373
6.000%
due
2038
76
88
5.000%
due
2040
208
229
4.000%
due
2041
1,164
1,263
4.500%
due
2041
211
230
5.500%
due
2041
219
246
3.500%
due
2043
912
970
4.000%
due
2044
540
580
3.500%
due
2045
1,524
1,616
4.000%
due
2045
1,145
1,217
3.000%
due
2046
2,997
3,083
4.000%
due
2046
1,251
1,337
4.500%
due
2046
225
241
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.000%
due
2047
1,078
1,107
4.000%
due
2047
335
353
3.000%
due
2048
178
184
3.500%
due
2048
1,168
1,204
4.000%
due
2048
2,399
2,502
4.500%
due
2048
2,805
2,954
5.000%
due
2048
213
229
2.500%
due
2049
1,497
1,481
3.000%
due
2049
7,902
8,039
3.500%
due
2049
6,548
6,753
4.000%
due
2049
3,331
3,462
5.000%
due
2049
343
366
3.000%
due
2050
1,000
1,020
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
3.320%
due
02/25/23
(~)(Ê)
1,450
1,503
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)
4,098
216
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
3,472
Series
2018-K080
Class
A2
3.926%
due
07/25/28
(~)(Ê)
3,081
3,412
Series
2018-K085
Class
A2
4.060%
due
10/25/28
(~)(Ê)
586
655
Series
2019-K091
Class
A2
3.505%
due
03/25/29
170
184
Freddie
Mac
Reference
REMICS
Series
2006-R007
Class
ZA
6.000%
due
05/15/36
214
245
Freddie
Mac
REMICS
Series
2003-2624
Class
QH
5.000%
due
06/15/33
66
74
Series
2010-3632
Class
PK
5.000%
due
02/15/40
135
146
Series
2010-3653
Class
B
4.500%
due
04/15/30
213
229
Series
2011-3973
Class
SA
Interest
Only
STRIP
4.017%
due
12/15/41
(Ê)
325
68
Series
2012-4010
Class
KM
3.000%
due
01/15/42
115
118
Series
2018-4813
Class
CJ
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
99
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.000%
due
08/15/48
108
108
Series
2019-RR01
Class
X
Interest
Only
STRIP
1.534%
due
06/25/48
(~)(Ê)
2,500
272
Freddie
Mac
Strips
Series
2014-334
Class
S7
Interest
Only
STRIP
3.627%
due
08/15/44
(Ê)
155
31
Series
2016-353
Class
S1
Interest
Only
STRIP
3.527%
due
12/15/46
(Ê)
72
12
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
Series
2014-HQ2
Class
M3
5.573%
due
09/25/24
(Ê)
522
564
Series
2015-DN1
Class
M3
5.973%
due
01/25/25
(Ê)
588
614
Series
2015-DNA2
Class
M2
5.077%
due
12/25/27
(Ê)
68
69
Series
2015-DNA3
Class
M3
6.523%
due
04/25/28
(Ê)
1,330
1,473
Series
2015-DNA3
Class
M3F
6.186%
due
04/25/28
(Ê)
760
808
Series
2015-HQA2
Class
M2
5.286%
due
05/25/28
(Ê)
190
191
Series
2017-DNA2
Class
B1
6.973%
due
10/25/29
(Ê)
510
589
Series
2017-DNA2
Class
M2
5.936%
due
10/25/29
(Ê)
440
469
Ginnie
Mae
I
3.000%
due
2042
374
386
3.500%
due
2048
81
85
Ginnie
Mae
II
3.500%
due
2044
89
93
3.500%
due
2045
34
36
3.500%
due
2047
324
336
4.000%
due
2047
1,359
1,421
3.000%
due
2048
657
676
3.500%
due
2048
308
320
4.000%
due
2048
883
919
4.500%
due
2048
337
354
2.500%
due
2049
99
98
3.000%
due
2049
1,600
1,643
3.500%
due
2049
3,370
3,480
4.000%
due
2049
499
527
4.500%
due
2049
3,720
3,889
5.000%
due
2049
316
334
30
Year
TBA(Ï)
2.500%
3,500
3,515
3.000%
4,500
4,619
Ginnie
Mae
REMICS
Series
2012-135
Class
IO
Interest
Only
STRIP
0.611%
due
01/16/53
(~)(Ê)
1,719
55
Series
2013-53
Class
OI
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Interest
Only
STRIP
3.500%
due
04/20/43
708
100
Series
2014-17
Class
AM
2.516%
due
06/16/48
(~)(Ê)
83
85
Series
2016-21
Class
ST
Interest
Only
STRIP
5.588%
due
02/20/46
(Ê)
227
39
Series
2016-51
Class
NS
Interest
Only
STRIP
5.518%
due
04/20/46
(Ê)
109
19
Series
2018-130
Class
A
3.250%
due
05/16/59
43
44
Series
2019-123
Class
A
3.000%
due
10/20/49
100
102
Grace
Mortgage
Trust
Series
2014-GRCE
Class
A
3.369%
due
06/10/28
(Þ)
393
397
GS
Mortgage
Securities
Corp.
II
Series
2018-SRP5
Class
A
3.065%
due
09/15/31
(Ê)(Þ)
490
490
GS
Mortgage
Securities
Trust
Series
2013-GC14
Class
AS
4.507%
due
08/10/46
(Þ)
235
251
Series
2016-GS2
Class
A4
3.050%
due
05/10/49
(Æ)
1,342
1,386
Series
2019-SOHO
Class
A
3.350%
due
06/15/36
(Ê)(Þ)
630
630
Hawaii
Hotel
Trust
Series
2019-MAUI
Class
C
3.390%
due
05/15/38
(Ê)(Þ)
940
939
Hilton
USA
Trust
Series
2016-HHV
Class
D
4.333%
due
11/05/38
(~)(Ê)(Þ)
1,240
1,290
Series
2016-HHV
Class
E
4.333%
due
11/05/38
(~)(Ê)(Þ)
600
611
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
1,221
Hospitality
Mortgage
Trust
Series
2019-HIT
Class
D
4.500%
due
11/15/36
(Ê)(Þ)
1,393
1,393
IndyMac
Index
Mortgage
Loan
Trust
Series
2006-AR2
Class
1A1A
2.730%
due
04/25/46
(Ê)
697
658
Series
2006-AR2
Class
1A1B
2.696%
due
04/25/46
(Ê)
523
493
Series
2007-FLX3
Class
A1
2.726%
due
06/25/37
(Ê)
195
187
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series
2004-LN2
Class
B
5.462%
due
07/15/41
(~)(Ê)
19
20
Series
2016-NINE
Class
A
2.949%
due
09/06/38
(~)(Ê)(Þ)
394
400
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
100
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
JPMorgan
Mortgage
Trust
Series
2015-3
Class
A5
3.500%
due
05/25/45
(~)(Ê)(Þ)
241
242
Series
2016-4
Class
A5
3.500%
due
10/25/46
(~)(Ê)(Þ)
503
512
Series
2017-2
Class
A6
3.000%
due
05/25/47
(~)(Ê)(Þ)
2,070
2,082
Series
2017-3
Class
1A5
3.500%
due
08/25/47
(~)(Ê)(Þ)
619
625
Series
2017-6
Class
A5
3.500%
due
12/25/48
(~)(Ê)(Þ)
306
310
Series
2018-3
Class
A1
3.500%
due
09/25/48
(~)(Ê)(Þ)
601
612
Series
2018-4
Class
A1
3.500%
due
10/25/48
(~)(Ê)(Þ)
229
233
Series
2018-4
Class
A15
3.500%
due
10/25/48
(~)(Ê)(Þ)
602
606
Series
2018-5
Class
A1
3.500%
due
10/25/48
(~)(Ê)(Þ)
536
546
Series
2018-6
Class
1A4
3.500%
due
12/25/48
(~)(Ê)(Þ)
1,181
1,188
Series
2018-8
Class
A15
4.000%
due
01/25/49
(~)(Ê)(Þ)
292
292
Series
2018-8
Class
A5
4.000%
due
01/25/49
(~)(Ê)(Þ)
1,482
1,495
Series
2018-9
Class
A15
4.000%
due
02/25/49
(~)(Ê)(Þ)
172
172
Series
2019-1
Class
A6
4.000%
due
05/25/49
(~)(Ê)(Þ)
305
304
Series
2019-INV2
Class
A3
3.500%
due
02/25/50
(~)(Ê)(Þ)
967
981
LB-UBS
Commercial
Mortgage
Trust
Series
2005-C7
Class
F
5.350%
due
11/15/40
(~)(Ê)
224
225
LSTAR
Securities
Investment,
Ltd.
Series
2019-4
Class
A1
3.532%
due
05/01/24
(Ê)(Þ)
427
427
ML-CFC
Commercial
Mortgage
Trust
Series
2007-5
Class
AJ
5.450%
due
08/12/48
(~)(Ê)
176
108
Series
2007-5
Class
AJFL
5.450%
due
08/12/48
(~)(Ê)(Þ)
175
107
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2016-C31
Class
A1
1.511%
due
11/15/49
195
193
Morgan
Stanley
Capital
I
Trust
Series
2011-C3
Class
A4
4.118%
due
07/15/49
80
82
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
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.423%
due
07/15/35
(Ê)(Þ)
1,955
1,955
Series
2019-NUGS
Class
E
3.994%
due
12/15/36
(Ê)(Þ)
1,970
1,963
Morgan
Stanley
Capital
I,
Inc.
Series
2019-BPR
Class
A
3.900%
due
05/15/36
(Ê)(Þ)
350
349
Series
2019-PLND
Class
A
3.500%
due
05/15/36
(Ê)(Þ)
1,613
1,610
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
Series
2017-237P
Class
D
3.865%
due
09/13/39
(Þ)
1,500
1,519
Series
2017-237P
Class
XA
Interest
Only
STRIP
0.467%
due
09/13/39
(~)(Ê)(Þ)
8,761
223
Series
2017-237P
Class
XB
Interest
Only
STRIP
0.050%
due
09/13/39
(~)(Ê)(Þ)
5,418
36
MSCG
Trust
Series
2015-ALDR
Class
A2
3.577%
due
06/07/35
(~)(Ê)(Þ)
255
260
Natixis
Commercial
Mortgage
Securities
Trust
Series
2019-FAME
Class
A
3.047%
due
08/15/34
(Þ)
440
444
New
Residential
Mortgage
Loan
Trust
Series
2019-NQM4
Class
A2
2.644%
due
09/25/59
(~)(Ê)(Þ)
477
475
Nomura
Resecuritization
Trust
Series
2015-4R
Class
1A14
2.670%
due
03/26/47
(Ê)(Þ)
1,237
1,049
NYT
Mortgage
Trust
Series
2019-NYT
Class
A
3.700%
due
11/15/35
(Ê)(Þ)
2,451
2,457
One
Market
Plaza
Trust
Series
2017-1MKT
Class
C
4.016%
due
02/10/32
(Þ)
217
221
Series
2017-1MKT
Class
D
4.146%
due
02/10/32
(Þ)
500
509
Series
2017-1MKT
Class
E
4.142%
due
02/10/32
(Þ)
595
596
PMT
Credit
Risk
Transfer
Trust
Series
2019-1R
Class
A
4.484%
due
03/27/24
(Ê)(Þ)
380
380
Series
2019-3R
Class
A
4.164%
due
10/27/22
(Ê)(Þ)
710
713
RBS
Commercial
Funding,
Inc.
Trust
Series
2013-GSP
Class
A
3.961%
due
01/15/32
(~)(Æ)(Ê)(Þ)
200
209
Residential
Accredit
Loans,
Inc.
Series
2006-QO7
Class
2A1
3.247%
due
09/25/46
(Ê)
909
838
Residential
Asset
Securitization
Trust
Series
2003-A15
Class
1A2
2.936%
due
02/25/34
(Ê)
19
17
Sequoia
Mortgage
Trust
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
101
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2013-4
Class
A3
1.550%
due
04/25/43
(~)(Ê)
1,386
1,348
Series
2015-1
Class
A1
3.500%
due
01/25/45
(~)(Ê)(Þ)
524
532
Structured
Adjustable
Rate
Mortgage
Loan
Trust
Series
2006-5
Class
3A
4.249%
due
06/25/36
(~)(Ê)
1,174
955
Tharaldson
Hotel
Portfolio
Trust
Series
2018-THL
Class
A
2.520%
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)
51
51
Series
2004-AR4
Class
A6
4.504%
due
06/25/34
(~)(Ê)
438
440
Series
2005-10
Class
3CB1
6.000%
due
11/25/35
803
750
Series
2005-AR9
Class
A1A
3.126%
due
07/25/45
(Ê)
278
276
Series
2005-AR11
Class
A1A
2.806%
due
08/25/45
(Ê)
519
517
Series
2006-AR1
Class
2A1A
3.467%
due
01/25/46
(Ê)
345
350
Wells
Fargo
Commercial
Mortgage
Trust
Series
2015-NXS1
Class
A5
3.148%
due
05/15/48
1,864
1,931
Series
2017-RB1
Class
XA
Interest
Only
STRIP
1.288%
due
03/15/50
(~)(Ê)
1,959
147
Wells
Fargo
Mortgage-Backed
Securities
Trust
Series
2006-AR5
Class
1A1
5.079%
due
04/25/36
(~)(Ê)
1,080
1,018
WinWater
Mortgage
Loan
Trust
Series
2014-1
Class
A1
3.926%
due
06/20/44
(~)(Ê)(Þ)
539
549
Worldwide
Plaza
Trust
Series
2017-WWP
Class
A
3.526%
due
11/10/36
(Þ)
452
475
280,984
Non-US
Bonds
-
6.8%
Argentine
Bonos
del
Tesoro
18.200%
due
10/03/21
ARS
5,600
33
Brazil
Notas
do
Tesouro
Nacional
Series
NTNB
6.000%
due
05/15/45
BRL
401
461
Series
NTNF
10.000%
due
01/01/21
BRL
4,005
1,047
10.000%
due
01/01/23
BRL
4,026
1,113
10.000%
due
01/01/25
BRL
3,706
1,059
10.000%
due
01/01/27
BRL
165
48
Canadian
Government
International
Bond
0.750%
due
09/01/21
CAD
1,578
1,196
1.500%
due
06/01/23
CAD
2,491
1,907
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.250%
due
06/01/25
CAD
1,778
1,409
1.000%
due
06/01/27
CAD
1,968
1,440
Colombian
Titulos
de
Tesoreria
Series
B
10.000%
due
07/24/24
COP
16,186,200
5,828
6.000%
due
04/28/28
COP
4,450,300
1,347
Indonesia
Treasury
Bond
Series
FR68
8.375%
due
03/15/34
IDR
14,844,000
1,144
Series
FR77
8.125%
due
05/15/24
IDR
13,960,000
1,072
Series
FR78
8.250%
due
05/15/29
IDR
22,837,000
1,773
Malaysia
Government
International
Bond
Series
0111
4.160%
due
07/15/21
MYR
150
37
Series
0114
4.181%
due
07/15/24
MYR
5,725
1,458
Series
0116
3.800%
due
08/17/23
MYR
3,100
775
Series
0117
3.882%
due
03/10/22
MYR
3,921
976
Series
0119
3.906%
due
07/15/26
MYR
215
54
Series
0215
3.795%
due
09/30/22
MYR
1,275
318
Series
0218
3.757%
due
04/20/23
MYR
4,616
1,152
Series
0314
4.048%
due
09/30/21
MYR
610
152
Series
0319
3.478%
due
06/14/24
MYR
1,057
261
Series
0517
3.441%
due
02/15/21
MYR
432
106
Mexican
Bonos
Series
M
20
10.000%
due
12/05/24
MXN
11,350
681
7.500%
due
06/03/27
MXN
35,397
1,944
8.500%
due
05/31/29
MXN
33,020
1,944
Series
M
30
10.000%
due
11/20/36
MXN
40,673
2,778
8.500%
due
11/18/38
MXN
9,100
549
Series
M
6.500%
due
06/10/21
MXN
740
39
7.750%
due
05/29/31
MXN
4,863
274
7.750%
due
11/13/42
MXN
92,493
5,188
8.000%
due
11/07/47
MXN
28,620
1,658
Norway
Government
International
Bond
Series
475
2.000%
due
05/24/23
(Þ)
NOK
10,613
1,232
Series
476
3.000%
due
03/14/24
(Þ)
NOK
11,435
1,387
Series
478
1.500%
due
02/19/26
(Þ)
NOK
2,985
342
Series
479
1.750%
due
02/17/27
(Þ)
NOK
2,270
263
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
102
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
480
2.000%
due
04/26/28
(Þ)
NOK
4,687
554
Peru
Government
International
Bond
5.700%
due
08/12/24
PEN
6,444
2,172
6.900%
due
08/12/37
PEN
3,424
1,245
Russian
Federal
Bond
-
OFZ
Series
6207
8.150%
due
02/03/27
RUB
48,740
878
Series
6212
7.050%
due
01/19/28
RUB
8,430
143
Series
6219
7.750%
due
09/16/26
RUB
31,660
556
Series
6224
6.900%
due
05/23/29
RUB
56,020
951
Series
6225
7.250%
due
05/10/34
RUB
1,960
34
Series
6228
7.650%
due
04/10/30
RUB
55,230
981
Series
6230
7.700%
due
03/16/39
RUB
42,470
775
Singapore
Government
International
Bond
2.250%
due
06/01/21
SGD
963
723
1.250%
due
10/01/21
SGD
1,199
887
3.125%
due
09/01/22
SGD
569
441
2.750%
due
07/01/23
SGD
1,670
1,292
3.000%
due
09/01/24
SGD
1,016
804
2.375%
due
06/01/25
SGD
1,437
1,114
2.125%
due
06/01/26
SGD
3,616
2,771
3.500%
due
03/01/27
SGD
2,077
1,736
62,502
United
States
Government
Treasuries
-
16.8%
United
States
Treasury
Inflation
Indexed
Bonds
0.125%
due
04/15/21
6,862
6,848
0.125%
due
01/15/22
637
636
0.375%
due
07/15/23
9,020
9,144
0.375%
due
07/15/25
4,534
4,626
3.375%
due
04/15/32
4,117
5,652
2.125%
due
02/15/40
1,655
2,163
1.375%
due
02/15/44
1,745
2,057
1.000%
due
02/15/46
1,010
1,110
0.875%
due
02/15/47
2,942
3,152
1.000%
due
02/15/48
762
843
1.000%
due
02/15/49
2,178
2,420
United
States
Treasury
Notes
1.375%
due
05/31/21
8,665
8,637
1.125%
due
06/30/21
12,245
12,158
1.750%
due
05/15/23
19,405
19,468
1.375%
due
06/30/23
480
475
1.250%
due
07/31/23
4,330
4,268
2.250%
due
04/30/24
30
31
1.250%
due
08/31/24
435
426
2.250%
due
11/15/24
390
400
1.500%
due
11/30/24
140
139
1.750%
due
12/31/24
2,830
2,836
2.000%
due
02/15/25
3,790
3,841
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.125%
due
05/15/25
2,735
2,789
2.000%
due
08/15/25
5,273
5,340
3.000%
due
10/31/25
685
731
2.250%
due
11/15/25
2,545
2,611
1.625%
due
02/15/26
4,303
4,260
2.250%
due
03/31/26
1,065
1,093
1.625%
due
05/15/26
3,005
2,971
1.500%
due
08/15/26
3,540
3,467
1.625%
due
09/30/26
450
444
1.625%
due
11/30/26
1,340
1,321
2.375%
due
05/15/27
1,935
2,005
2.750%
due
02/15/28
530
564
2.375%
due
05/15/29
875
909
1.750%
due
11/15/29
320
315
4.500%
due
05/15/38
1,090
1,471
2.750%
due
11/15/42
1,190
1,268
2.875%
due
05/15/43
1,200
1,306
3.750%
due
11/15/43
1,510
1,886
3.125%
due
08/15/44
920
1,045
2.875%
due
08/15/45
4,765
5,202
3.000%
due
11/15/45
1,322
1,477
3.000%
due
05/15/47
1,225
1,375
2.750%
due
08/15/47
1,180
1,264
2.750%
due
11/15/47
1,775
1,901
3.000%
due
02/15/48
4,435
4,980
3.125%
due
05/15/48
2,665
3,065
3.000%
due
08/15/48
440
495
3.375%
due
11/15/48
480
579
3.000%
due
02/15/49
90
101
2.875%
due
05/15/49
290
319
2.250%
due
08/15/49
6,550
6,346
154,230
Total
Long-Term
Investments
(cost
$795,316)
813,327
Common
Stocks
-
0.0%
Financial
Services
-
0.0%
Escrow
GM
Corp.(Æ)(Š)
80,000
—
Technology
-
0.0%
Sungard
Availability
Services,
LP(Æ)(Š)
1,760
35
Total
Common
Stocks
(cost
$44)
35
Options
Purchased
-
0.0%
(Number
of
Contracts)
United
States
10
Year
Treasury
Note
Futures
Bank
of
America
Jan
2020
128.50
Call
(21)
USD
2,699
(ÿ)
10
United
States
5
Year
Treasury
Note
Futures
Bank
of
America
Jan
2020
118.50
Call
(56)
USD
6,636
(ÿ)
19
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
103
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Total
Options
Purchased
(cost
$25)
29
Short-Term
Investments
-
10.5%
Ambac
Assurance
Corp.
5.100%
due
06/07/20
(Þ)
1
1
American
Express
Credit
Corp.
2.375%
due
05/26/20
80
80
Amgen,
Inc.
2.125%
due
05/01/20
20
20
Apple,
Inc.
2.000%
due
11/13/20
80
80
Argentina
POM
Politica
Monetaria
Series
POM
56.590%
due
06/21/20
(Ê)
ARS
6,310
58
Boeing
Co.
(The)
4.875%
due
02/15/20
100
100
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
Series
WI
3.579%
due
07/23/20
80
81
Chubb
INA
Holdings,
Inc.
2.300%
due
11/03/20
20
20
Credit
Suisse
Mortgage
Trust
Series
2018-PLUM
Class
A
4.971%
due
08/15/20
(Ê)(Þ)
33
33
Express
Scripts
Holding
Co.
2.600%
due
11/30/20
278
280
Fannie
Mae
4.000%
due
01/01/20
—
—
Federal
Home
Loan
Banks
2.125%
due
02/11/20
70
70
1.660%
due
10/07/20
(Ê)
660
660
Freddie
Mac
4.500%
due
08/01/20
—
—
1.580%
due
09/10/20
(Ê)
290
290
General
Electric
Co.
Series
GMTN
5.500%
due
01/08/20
10
10
General
Motors
Financial
Co.,
Inc.
2.450%
due
11/06/20
30
30
Gilead
Sciences,
Inc.
2.550%
due
09/01/20
120
121
Glencore
Funding
LLC
2.875%
due
04/16/20
(Þ)
20
20
Goldman
Sachs
Capital
II
4.000%
due
12/20/20
(Ê)
3
3
Goldman
Sachs
Group,
Inc.
(The)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
D
6.000%
due
06/15/20
150
153
JPMorgan
Chase
&
Co.
4.250%
due
10/15/20
300
305
Lloyds
TSB
Bank
PLC
6.500%
due
09/14/20
(Þ)
228
234
Malaysia
Government
International
Bond
Series
0315
3.659%
due
10/15/20
MYR
3,222
792
Series
0613
3.889%
due
07/31/20
MYR
230
57
Prosus
NV
6.000%
due
07/18/20
(Þ)
206
209
Reliance
Standard
Life
Global
Funding
II
2.500%
due
01/15/20
(Þ)
30
30
Reynolds
American,
Inc.
3.250%
due
06/12/20
40
40
Royal
Bank
of
Canada
2.150%
due
10/26/20
70
70
Santander
PLC
2.375%
due
03/16/20
40
40
Shell
International
Finance
BV
4.375%
due
03/25/20
10
10
Singapore
Government
International
Bond
2.000%
due
07/01/20
SGD
464
346
Telefonica
Emisiones
SA
5.134%
due
04/27/20
40
40
U.S.
Cash
Management
Fund
16,798,811(∞)
16,804
United
States
Treasury
Bills
0.000%
due
01/02/20
(ç)(ž)
10,732
10,732
0.994%
due
01/07/20
(ç)(ž)
500
500
1.284%
due
01/14/20
(ç)(ž)
1,415
1,414
1.440%
due
02/06/20
(ç)(ž)
19,842
19,813
1.489%
due
03/05/20
(ž)
10,752
10,724
1.527%
due
04/02/20
(ž)
7,167
7,140
1.542%
due
05/21/20
(ž)
9,037
8,983
1.560%
due
07/16/20
(ž)
9,216
9,139
United
States
Treasury
Notes
0.511%
due
05/31/20
6,121
6,115
UnitedHealth
Group,
Inc.
3.875%
due
10/15/20
10
10
Class
A
2.700%
due
07/15/20
70
70
Westpac
Banking
Corp.
2.300%
due
05/26/20
10
10
2.600%
due
11/23/20
80
80
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
104
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Williams
Cos.,
Inc.
(The)
5.250%
due
03/15/20
40
40
Total
Short-Term
Investments
(cost
$95,802)
95,857
Total
Investments
99.1%
(identified
cost
$891,187)
909,248
Other
Assets
and
Liabilities,
Net
-
0.9%
8,522
Net
Assets
-
100.0%
917,770
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
105
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
16.9%
1011778
BC
ULC
/
New
Red
Finance,
Inc.
03/15/19
120,000
100.63
121
123
A10
Securitization
LLC
06/23/17
961,000
100.00
961
955
ABB
Treasury
Center,
Inc.
03/05/19
220,000
101.37
223
227
AbbVie,
Inc.
11/12/19
380,000
100.01
380
386
AbbVie,
Inc.
11/12/19
100,000
99.88
100
101
AbbVie,
Inc.
11/12/19
440,000
99.91
440
442
AbbVie,
Inc.
11/12/19
390,000
99.91
390
392
ABN
AMRO
Bank
NV
03/05/19
725,000
100.25
727
729
Abu
Dhabi
Government
International
Bond
10/03/17
200,000
99.81
200
202
ACE
Securities
Corp.
Mortgage
Loan
Trust
03/08/17
543,258
93.64
509
516
Adani
Abbot
Point
Terminal
Pty,
Ltd.
02/01/19
253,000
90.30
228
257
Air
Liquide
Finance
SA
09/03/19
733,000
99.57
730
730
Alcoa
Nederland
Holding
BV
09/28/17
200,000
107.86
216
210
Alimentation
Couche-Tard,
Inc.
09/19/17
702,000
103.01
723
721
Allergan
Sales
LLC
09/26/19
687,000
104.52
718
718
Ambac
Assurance
Corp.
02/09/17
881
159.16
1
1
Ambac
LSNI
LLC
02/09/17
3,946,905
98.85
3,986
3,998
Anglo
American
Capital
PLC
09/06/17
200,000
99.96
200
207
Anglo
American
Capital
PLC
09/30/19
368,000
102.49
377
378
Applebee's
Funding
LLC
/
IHOP
Funding
LLC
05/28/19
340,000
100.00
340
345
Avis
Budget
Rental
Car
Funding LLC
04/16/19
600,000
100.38
602
618
Banco
de
Bogota
SA
09/22/17
686,000
104.68
718
726
Banco
de
Credito
del
Peru
12/04/19
693,000
105.24
729
730
Bangkok
Bank
PCL
11/09/18
219,000
99.44
218
227
Banistmo
SA
12/07/17
729,000
100.63
734
736
Bayer
US
Finance
II
LLC
06/19/18
713,000
101.10
721
726
Bayer
US
Finance
LLC
08/02/18
726,000
100.60
730
748
Bayview
Commercial
Asset
Trust
10/26/17
952,275
96.01
914
905
BBVA
Bancomer
SA
09/27/19
695,000
104.03
723
725
BCAP
LLC
Trust
07/21/16
760,739
75.45
574
704
BCAP
LLC
Trust
03/20/17
579,368
85.80
497
553
BCAP
LLC
Trust
03/20/17
909,181
85.83
780
868
Bharti
Airtel
International
Netherlands
BV
09/26/19
693,000
105.20
729
727
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
11/04/16
812,063
99.73
810
806
Blue
Racer
Midstream
LLC
/
Blue
Racer
Finance
Corp.
02/25/19
30,000
101.78
31
29
BMW
US
Capital
LLC
03/20/18
20,000
97.77
20
20
BMW
US
Capital
LLC
09/27/19
724,000
99.90
723
725
BNP
Paribas
SA
08/07/18
200,000
99.52
199
222
BNP
Paribas
SA
01/03/19
260,000
100.00
260
281
BNP
Paribas
SA
01/03/19
570,000
105.35
600
669
Bristol-Myers
Squibb
Co.
05/07/19
190,000
100.12
190
199
Bristol-Myers
Squibb
Co.
05/07/19
170,000
99.22
169
182
Bristol-Myers
Squibb
Co.
05/07/19
290,000
99.66
289
299
Bristol-Myers
Squibb
Co.
05/07/19
90,000
99.79
90
91
Bristol-Myers
Squibb
Co.
11/20/19
70,000
100.39
70
70
Bristol-Myers
Squibb
Co.
11/20/19
30,000
103.71
31
31
Bristol-Myers
Squibb
Co.
11/20/19
200,000
107.27
215
216
Bristol-Myers
Squibb
Co.
11/20/19
380,000
108.99
414
418
Bristol-Myers
Squibb
Co.
11/20/19
80,000
127.49
102
102
Broadcom,
Inc.
09/30/19
712,000
100.84
718
720
BX
Commercial
Mortgage
Trust
03/02/18
1,575,000
99.45
1,566
1,574
BX
Commercial
Mortgage
Trust
06/01/18
1,650,000
100.00
1,650
1,641
BX
Commercial
Mortgage
Trust
03/05/19
133,000
100.48
134
133
BX
Commercial
Mortgage
Trust
04/18/19
790,000
100.06
790
791
BX
Commercial
Mortgage
Trust
10/09/19
1,100,000
100.00
1,100
1,101
BXP
Trust
10/30/17
818,000
100.72
824
857
CAL
Funding
III,
Ltd.
06/28/17
593,250
99.99
593
593
CAL
Funding
III,
Ltd.
12/10/19
259,000
101.69
263
263
CAMB
Commercial
Mortgage
Trust
01/25/19
1,651,000
100.00
1,651
1,661
CAMB
Commercial
Mortgage
Trust
01/25/19
987,000
100.14
988
992
Cameron
LNG
LLC
12/05/19
40,000
100.00
40
40
Cameron
LNG
LLC
12/05/19
140,000
100.21
140
141
Carlyle
Global
Market
Strategies
CLO,
Ltd.
11/07/19
761,000
99.59
758
758
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
106
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)
$
Cedar
Funding,
Ltd.
07/03/18
1,600,000
100.00
1,600
1,598
Cencosud
SA
07/01/19
264,000
102.63
271
270
Citigroup
Commercial
Mortgage
Trust
01/12/17
170,000
102.54
174
175
Citigroup
Commercial
Mortgage
Trust
02/12/19
1,418,000
0.99
1,402
1,428
Citigroup
Commercial
Mortgage
Trust
02/21/19
430,000
100.00
430
431
Citigroup
Mortgage
Loan
Trust,
Inc.
02/01/17
141,648
97.78
139
143
Commercial
Mortgage
Trust
01/22/16
195,000
1.06
207
206
Commercial
Mortgage
Trust
02/17/16
205,000
103.75
213
216
Commercial
Mortgage
Trust
07/25/16
140,000
102.23
143
140
Commercial
Mortgage
Trust
11/21/16
211,000
100.81
213
215
Commercial
Mortgage
Trust
06/05/19
899,000
100.00
899
899
Commercial
Mortgage
Trust
06/05/19
1,203,000
100.00
1,203
1,202
CORE
Mortgage
Trust
03/01/19
1,520,000
100.00
1,520
1,519
Credit
Suisse
Mortgage
Capital
Certificates
06/20/17
600,000
99.57
597
600
Credit
Suisse
Mortgage
Capital
Certificates
05/28/19
800,000
100.00
800
802
Credit
Suisse
Mortgage
Capital
Certificates
05/28/19
1,282,000
100.00
1,282
1,284
Credit
Suisse
Mortgage
Trust
06/26/18
1,079,959
97.66
1,055
1,101
Credit
Suisse
Mortgage
Trust
09/19/18
33,103
100.00
33
33
DAE
Funding
LLC
11/01/18
20,000
100.00
20
21
Daimler
Finance
NA
LLC
08/12/19
320,000
100.64
322
323
Danone
SA
10/26/16
890,000
99.93
889
891
Danone
SA
04/22/19
718,000
100.12
719
729
Danske
Bank
A/S
01/11/19
400,000
102.13
409
420
Danske
Bank
A/S
03/11/19
862,000
105.20
918
945
Danske
Bank
A/S
09/17/19
200,000
103.03
206
208
DBGS
Mortgage
Trust
04/03/19
985,000
101.40
999
1,046
DCP
Midstream
Operating,
LP
12/11/19
30,000
104.99
31
32
Dell
International
LLC
/
EMC
Corp.
05/17/16
430,000
101.38
436
442
Deutsche
Mortgage
Securities,
Inc.
Re-REMIC
Trust
01/04/17
424,732
100.62
427
435
Deutsche
Telekom
International
Finance
BV
05/02/18
251,000
97.68
245
251
Dividend
Solar
Loans
LLC
06/28/19
370,376
99.98
370
371
DNB
Bank
ASA
10/22/19
550,000
100.37
552
554
DP
World
PLC
10/03/19
200,000
115.42
231
231
Dryden
50
Senior
Loan
Fund
07/24/17
1,230,000
100.00
1,230
1,226
ECAF,
Ltd.
08/09/18
267,527
99.23
265
267
Ecuador
Government
International
Bond
01/18/18
200,000
100.00
200
178
Education
Loan
Asset-Backed
Trust
I
07/24/19
580,000
99.32
576
575
Embotelladora
Andina
SA
09/03/19
264,000
106.93
282
282
EMD
Finance
LLC
04/22/19
272,000
98.30
267
280
Enel
Finance
International
NV
01/05/18
706,000
101.12
714
722
Eni
SpA
09/26/19
658,000
109.20
719
722
Equate
Petrochemical
BV
10/27/16
200,000
99.11
198
214
Fannie
Mae
Connecticut
Avenue
Securities
10/29/19
670,000
100.00
670
676
Flagstar
Mortgage
Trust
10/26/17
670,900
101.40
680
674
Flagstar
Mortgage
Trust
04/13/18
269,916
98.62
266
275
Flatiron
CLO,
Ltd.
11/21/19
1,000,000
100.10
1,001
1,000
Fox
Corp.
01/15/19
30,000
100.00
30
34
Fox
Corp.
01/17/19
270,000
115.49
312
330
Fresenius
Medical
Care
US
Finance
II,
Inc.
06/16/16
110,000
102.77
113
119
Fresenius
Medical
Care
US
Finance
II,
Inc.
09/19/17
236,000
106.13
250
252
Gazprom
PJSC
Via
Gaz
Capital
SA
02/01/19
672,000
106.87
718
729
Glencore
Funding
LLC
10/12/16
40,000
101.07
40
42
Glencore
Funding
LLC
09/13/17
350,000
101.09
354
363
Glencore
Funding
LLC
03/21/18
20,000
99.90
20
20
Glencore
Funding
LLC
01/16/19
60,000
94.38
57
62
Glencore
Funding
LLC
03/05/19
430,000
101.17
435
450
Goldentree
Loan
Management
US
CLO
2,
Ltd.
10/26/18
1,860,000
100.04
1,861
1,858
Grace
Mortgage
Trust
05/19/17
393,000
103.25
406
397
GS
Mortgage
Securities
Corp.
II
06/06/18
490,000
100.00
490
490
GS
Mortgage
Securities
Trust
07/20/16
235,000
111.96
263
251
GS
Mortgage
Securities
Trust
05/31/19
630,000
100.00
630
630
Hanesbrands,
Inc.
08/10/18
10,000
98.14
10
11
Hanesbrands,
Inc.
08/13/18
70,000
102.01
71
74
Hawaii
Hotel
Trust
05/16/19
940,000
100.00
940
939
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
107
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)
$
Heineken
NV
10/22/19
710,000
102.78
730
731
Hilton
USA
Trust
11/22/16
1,840,000
88.99
1,677
1,901
Hilton
USA
Trust
05/26/17
226,000
99.71
225
226
HMH
Trust
06/09/17
1,170,000
99.99
1,170
1,221
Horizon
Aircraft
Finance
I,
Ltd.
11/16/18
840,028
100.00
840
862
Hospitality
Mortgage
Trust
05/16/19
1,392,533
100.00
1,393
1,393
ICICI
Bank,
Ltd.
09/06/18
252,000
94.98
239
262
Intesa
Sanpaolo
SpA
07/10/17
400,000
100.21
401
405
Intesa
Sanpaolo
SpA
01/05/18
200,000
99.84
200
203
Intesa
Sanpaolo
SpA
04/22/19
287,000
92.28
265
288
Inversiones
CMPC
SA
09/22/17
214,000
102.85
220
221
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
10/30/17
394,000
98.89
390
400
JPMorgan
Mortgage
Trust
03/30/17
241,313
102.55
247
242
JPMorgan
Mortgage
Trust
08/09/17
618,639
102.59
635
625
JPMorgan
Mortgage
Trust
10/26/17
502,970
101.06
508
512
JPMorgan
Mortgage
Trust
03/23/18
600,825
98.62
593
612
JPMorgan
Mortgage
Trust
04/25/18
1,366,249
98.85
1,356
1,385
JPMorgan
Mortgage
Trust
08/16/18
1,774,585
100.48
1,781
1,787
JPMorgan
Mortgage
Trust
09/20/18
172,056
100.53
173
172
JPMorgan
Mortgage
Trust
01/18/19
304,533
100.69
307
304
JPMorgan
Mortgage
Trust
03/06/19
1,487,606
100.43
1,490
1,498
JPMorgan
Mortgage
Trust
03/08/19
2,069,530
98.07
2,030
2,082
JPMorgan
Mortgage
Trust
09/18/19
967,007
101.21
979
981
KazMunayGas
National
Co.
JSC
04/17/18
200,000
100.00
200
232
KKR
Group
Finance
Co.
II
LLC
02/20/15
10,000
109.70
11
12
Korea
Southern
Power
Co.,
Ltd.
05/02/18
241,000
99.52
240
243
Kraft
Heinz
Foods
Co.
08/05/15
28,000
104.38
29
29
Kuwait
Government
International
Bond
03/13/17
210,000
99.26
208
226
Lamb
Weston
Holdings,
Inc.
12/01/16
60,000
99.72
60
64
LCM
XXIII,
Ltd.
04/18/19
1,020,000
100.30
1,023
1,020
LCM
XXV,
Ltd.
07/10/17
1,124,000
100.00
1,124
1,120
Legacy
Mortgage
Asset
Trust
05/23/19
442,775
100.00
443
445
Lloyds
TSB
Bank
PLC
12/07/17
228,000
102.55
234
234
LSTAR
Securities
Investment,
Ltd.
05/17/19
427,485
100.00
427
427
Lukoil
International
Finance
BV
09/19/17
682,000
104.66
714
723
LYB
Finance
Co.
BV
02/15/19
186,000
119.10
222
238
Madison
Park
Funding
XIII,
Ltd.
11/07/19
574,000
99.64
572
574
Madison
Park
Funding
XVIII,
Ltd.
12/01/17
872,000
100.68
878
872
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
1,488
1,487
Marks
And
Spencer
PLC
11/06/17
623,000
115.47
719
704
Mars,
Inc.
03/26/19
30,000
99.72
30
32
Mars,
Inc.
03/26/19
60,000
99.94
60
61
Midwest
Connector
Capital
Co.
LLC
06/04/19
267,000
101.62
271
274
ML-CFC
Commercial
Mortgage
Trust
08/05/16
175,471
82.25
144
107
Mondelez
International
Holdings
Netherlands
BV
10/22/19
726,000
99.93
726
726
Morgan
Stanley
Capital
I
Trust
07/19/18
1,955,000
100.00
1,955
1,955
Morgan
Stanley
Capital
I
Trust
08/15/18
1,732,000
100.00
1,732
1,732
Morgan
Stanley
Capital
I
Trust
12/12/19
1,970,000
99.42
1,959
1,963
Morgan
Stanley
Capital
I,
Inc.
04/24/19
350,000
100.00
350
349
Morgan
Stanley
Capital
I,
Inc.
05/10/19
1,613,000
100.00
1,613
1,610
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
5,418,000
0.67
36
36
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
8,761,000
2.55
223
223
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
1,500,000
97.23
1,459
1,519
MSCG
Trust
05/19/15
255,000
101.41
259
260
Natixis
Commercial
Mortgage
Securities
Trust
08/29/19
440,000
102.94
453
444
NBK
SPC,
Ltd.
09/30/19
714,000
100.68
719
719
Nestle
Holdings,
Inc.
04/22/19
718,000
101.48
729
734
New
Residential
Mortgage
Loan
Trust
09/09/19
477,221
100.00
477
475
NGPL
PipeCo
LLC
09/26/19
553,000
129.81
718
713
Nomura
Resecuritization
Trust
07/22/16
1,236,546
59.19
732
1,049
Nordea
Bank
AB
06/04/19
265,000
102.61
272
275
Northern
Natural
Gas
Co.
08/02/18
631,000
109.11
688
709
Norway
Government
International
Bond
01/18/19
NOK
2,985,000
11.40
340
342
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
108
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)
$
Norway
Government
International
Bond
01/18/19
NOK
2,270,000
11.43
260
263
Norway
Government
International
Bond
01/18/19
NOK
4,687,000
11.69
548
554
Norway
Government
International
Bond
01/18/19
NOK
10,613,000
11.85
1,258
1,232
Norway
Government
International
Bond
01/18/19
NOK
11,435,000
12.02
1,375
1,387
NXP
BV
/
NXP
Funding
LLC
05/02/19
693,000
104.03
721
730
NYT
Mortgage
Trust
01/11/19
2,451,000
100.00
2,451
2,457
One
Market
Plaza
Trust
02/15/17
500,000
100.03
500
509
One
Market
Plaza
Trust
02/15/17
217,000
102.76
223
221
One
Market
Plaza
Trust
02/15/17
595,000
97.90
583
596
Park
Aerospace
Holdings,
Ltd.
02/25/19
50,000
101.89
51
53
Pernod
Ricard
SA
06/13/16
150,000
103.83
156
157
PMT
Credit
Risk
Transfer
Trust
03/21/19
380,453
100.00
380
380
PMT
Credit
Risk
Transfer
Trust
10/11/19
709,664
100.00
710
713
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
10/18/16
35,000
104.95
37
37
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
09/13/19
60,000
101.93
61
65
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
09/20/19
70,000
102.56
72
74
Prosus
NV
06/29/17
250,000
100.00
250
272
Prosus
NV
09/21/17
206,000
101.73
210
209
Provincia
de
Buenos
Aires
02/08/17
140,000
99.76
140
58
Qatar
Government
International
Bond
10/03/19
410,000
123.99
508
507
RBS
Commercial
Funding,
Inc.
Trust
01/19/16
200,000
1.04
208
209
Reliance
Holdings
USA,
Inc.
12/04/19
684,000
105.76
723
723
Reliance
Standard
Life
Global
Funding
II
03/23/18
30,000
99.98
30
30
Riserva
CLO,
Ltd.
06/10/19
940,000
100.00
940
940
Sabal
Trail
Transmission
LLC
08/02/18
663,000
105.92
702
723
Santander
Holdings,
Inc.
10/01/19
350,000
100.28
351
353
Santander
PLC
05/14/19
676,000
105.04
710
727
Santander
UK
Group
Holdings
PLC
03/05/19
701,000
102.45
718
752
Schlumberger
Holdings
Corp.
12/10/15
40,000
99.96
40
43
Schneider
Electric
SE
02/04/19
200,000
98.75
197
205
Sequoia
Mortgage
Trust
10/21/16
523,842
103.03
540
532
Shackleton
CLO,
Ltd.
04/04/18
930,000
100.00
930
917
Siemens
Financieringsmaatschappij
NV
03/05/19
250,000
97.88
245
250
SMB
Private
Education
Loan
Trust
06/04/19
190,000
100.00
190
190
Societe
Generale
SA
12/11/19
700,000
107.72
754
754
SoFi
Professional
Loan
Program
Trust
12/12/19
730,000
103.70
757
754
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
03/14/18
240,000
100.00
240
254
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
03/15/18
87,500
99.83
87
88
Standard
Chartered
PLC
09/26/19
600,000
122.69
736
770
Sunrun
Atlas
Issuer
LLC
10/17/19
600,000
99.95
600
596
Swedbank
AB
09/27/19
797,000
100.39
800
802
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
12/11/19
30,000
101.66
30
31
Teachers
Insurance
&
Annuity
Association
of
America
06/14/16
340,000
115.38
392
417
Textainer
Marine
Containers,
Ltd.
05/11/17
759,236
100.00
759
762
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
1,012
Towd
Point
Mortgage
Trust
07/22/16
205,102
99.86
205
205
Towd
Point
Mortgage
Trust
07/07/17
450,726
100.55
453
452
Towd
Point
Mortgage
Trust
08/04/17
572,991
100.34
575
576
Towd
Point
Mortgage
Trust
09/18/17
938,992
100.60
945
945
Towd
Point
Mortgage
Trust
10/25/19
1,303,750
104.60
1,364
1,353
Towd
Point
Mortgage
Trust
10/31/19
1,103,965
102.30
1,129
1,120
Towd
Point
Mortgage
Trust
11/04/19
1,775,309
100.97
1,793
1,784
Triton
Container
Finance
IV
LLC
08/16/17
513,961
100.08
514
513
Triton
Container
Finance
V
LLC
03/13/18
204,600
99.98
205
206
Triton
Container
Finance
VI
LLC
06/07/17
570,445
99.05
565
568
Trust
F/1401
09/20/17
685,000
105.89
725
736
UBS
Group
AG
03/16/17
270,000
100.00
270
278
UBS
Group
AG
01/28/19
660,000
102.29
675
721
UBS
Group
AG
09/20/19
200,000
100.80
202
203
UBS
Group
Funding
Switzerland
AG
03/16/17
200,000
100.00
200
218
UniCredit
SpA
01/08/19
1,042,000
103.27
1,086
1,118
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
109
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)
$
Union
Pacific
Corp.
06/07/18
140,000
100.93
141
142
Vistra
Operations
Co.
LLC
06/04/19
708,000
101.47
718
721
VOC
Escrow,
Ltd.
08/07/18
60,000
97.18
58
63
Volkswagen
Group
of
America
Finance
LLC
09/26/19
699,000
102.92
719
723
VOLT
LXII
LLC
05/16/19
1,807,734
99.91
1,807
1,808
Voya
CLO,
Ltd.
03/31/17
1,964,000
99.98
1,963
1,959
WinWater
Mortgage
Loan
Trust
03/29/17
539,298
102.45
552
549
Woori
Bank
12/07/17
681,000
103.96
708
710
Worldwide
Plaza
Trust
10/31/17
452,000
102.68
464
475
155,306
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
110
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
1011778
B.C.
Unlimited
Liability
Co.
Term
Loan
B4
USD
1
Month
LIBOR
1.750
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
Term
Loan
B7
USD
1
Month
LIBOR
2.750
Albertson's
LLC
Term
Loan
B8
USD
1
Month
LIBOR
2.750
Allied
Universal
Holdco
Delayed
Draw
Term
Loan
USD
1
Month
LIBOR
4.250
Allied
Universal
Holdco
Term
Loan
B
USD
1
Month
LIBOR
4.250
Altrice
France
SA
Term
Loan
B12
USD
1
Month
LIBOR
3.688
Ambac
LSNI
LLC
USD
3
Month
LIBOR
10.000
AMC
Entertainment
Holdings,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
3.000
American
Airlines,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.000
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
APi
Group
DE,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
2.500
Aramark
Services,
Inc.
1st
Lien
Term
Loan
B3
USD
1
Month
LIBOR
1.750
Argentina
POM
Politica
Monetaria
Argentina
Blended
Historical
Policy
Rate
0.000
Asset
Backed
Securities
Corp.
Home
Equity
Loan
Trust
USD
1
Month
LIBOR
0.140
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
1.370
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.520
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.210
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.310
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.780
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.040
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.790
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.810
Bank
of
America
Corp.
USD
3
Month
LIBOR
3.898
Bank
of
Montreal
USD
Swap
Semiannual
30/360
(versus
3
Month
LIBOR)
5
Year
Rate
1.432
Barclays
PLC
USD
3
Month
LIBOR
1.902
Bausch
Health
Americas,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
3.000
Bayview
Commercial
Asset
Trust
USD
1
Month
LIBOR
0.270
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
Global,
Inc.
Term
Loan
W
USD
1
Month
LIBOR
2.000
Blackstone
CQP
Holdco,
LP
Term
Loan
B
USD
3
Month
LIBOR
3.500
BNC
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.160
BNP
Paribas
SA
USD
3
Month
LIBOR
2.567
BNP
Paribas
SA
USD
3
Month
LIBOR
2.235
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
111
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
BX
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
2.050
BX
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
0.920
BX
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
1.321
BX
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
1.951
BX
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
1.220
Caesars
Entertainment
Operating
Co.
LLC
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.000
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
Carlyle
Global
Market
Strategies
CLO,
Ltd.
USD
3
Month
LIBOR
0.890
Cedar
Funding,
Ltd.
USD
3
Month
LIBOR
1.100
Change
Healthcare
Holdings
LLC
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.500
Charter
Communications,
Inc.
Term
Loan
B1
USD
1
Month
LIBOR
1.750
CHL
Mortgage
Pass-Through
Trust
USD
1
Month
LIBOR
0.580
Citadel
Securities,
LP
Term
Loan
B
USD
1
Month
LIBOR
3.500
Citigroup
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
2.500
Citigroup
Mortgage
Loan
Trust,
Inc.
U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
2.400
Citigroup
Mortgage
Loan
Trust,
Inc.
USD
1
Month
LIBOR
0.250
Citigroup
Mortgage
Loan
Trust,
Inc.
USD
1
Month
LIBOR
0.450
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
0.900
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
1.550
CORE
Mortgage
Trust
USD
1
Month
LIBOR
1.650
Countrywide
Alternative
Loan
Trust
USD
1
Month
LIBOR
0.400
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
0.980
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
2.150
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
5.620
Credit
Suisse
Mortgage
Trust
USD
1
Month
LIBOR
3.231
CSC
Holdings
LLC
2019
Term
Loan
B5
USD
1
Month
LIBOR
2.500
Dcert
Buyer,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
4.000
Dell
International
LLC
Term
Loan
B
USD
1
Month
LIBOR
2.000
Diamond
Sports
Group
LLC
Term
Loan
USD
1
Month
LIBOR
3.250
Dryden
50
Senior
Loan
Fund
USD
3
Month
LIBOR
1.220
Edelman
Financial
Center
LLC
Term
Loan
B1
USD
1
Month
LIBOR
3.250
Education
Loan
Asset-Backed
Trust
I
USD
1
Month
LIBOR
0.800
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
4.250
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
2.100
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
4.900
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
2.600
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
112
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
3.000
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.500
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.000
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.150
Fannie
Mae
REMICS
USD
1
Month
LIBOR
5.950
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.100
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.100
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.200
Federal
Home
Loan
Banks
Secured
Overnight
Financing
Rate
0.120
Fieldstone
Mortgage
Investment
Trust
USD
1
Month
LIBOR
1.950
Flatiron
CLO,
Ltd.
USD
3
Month
LIBOR
1.250
Focus
Financial
Partners
LLC
1st
Lien
Term
Loan
B2
USD
1
Month
LIBOR
2.500
Four
Seasons
Hotels,
Ltd.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.000
Freddie
Mac
Secured
Overnight
Financing
Rate
0.040
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
3.750
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
2.800
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
4.700
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
4.150
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
3.450
Garda
World
Security
Corp.
1st
Lien
Term
Loan
B
USD
3
Month
LIBOR
4.750
GFL
Environmental,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
3.000
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
2.750
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
1.510
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.201
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.301
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.430
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
B12
USD
1
Month
LIBOR
1.750
Hilton
Worldwide
Finance
LLC
Term
Loan
B
USD
1
Month
LIBOR
1.750
Home
Equity
Asset
Trust
USD
1
Month
LIBOR
0.280
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
113
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Home
Equity
Asset
Trust
USD
1
Month
LIBOR
0.410
Home
Equity
Asset
Trust
USD
1
Month
LIBOR
0.150
Hospitality
Mortgage
Trust
USD
1
Month
LIBOR
2.000
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.546
HSBC
Holdings
PLC
USD
ICE
Swap
Rate
NY
5
Year
Rate
3.453
HSBC
Holdings
PLC
USD
ICE
Swap
Rate
NY
5
Year
Rate
3.606
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.535
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.610
HSI
Asset
Securitization
Corp.
Trust
USD
1
Month
LIBOR
0.140
iHeartCommunications
,
Inc.
Exit
Term
Loan
USD
1
Month
LIBOR
4.000
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.220
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.240
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.210
Intelsat
Jackson
Holdings
SA
Term
Loan
B3
USD
6
Month
LIBOR
3.750
Intrawest
Resorts
Holdings,
Inc.
1st
Lien
Term
Loan
B1
USD
1
Month
LIBOR
2.750
Jaguar
Holding
Co.
II
1st
Lien
Term
Loan
USD
1
Month
LIBOR
2.500
Jane
Street
Group
LLC
Term
Loan
B
USD
1
Month
LIBOR
3.000
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
1.260
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
1.330
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
1.000
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
1.750
Long
Beach
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.900
Long
Beach
Mortgage
Loan
Trust
USD
1
Month
LIBOR
1.500
LPL
Holdings,
Inc.
Term
Loan
B1
USD
1
Month
LIBOR
1.750
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
XIII,
Ltd.
USD
3
Month
LIBOR
0.950
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
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
0.847
Morgan
Stanley
USD
3
Month
LIBOR
1.140
Morgan
Stanley
USD
3
Month
LIBOR
1.628
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.950
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
2.244
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.950
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
114
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Morgan
Stanley
Capital
I,
Inc.
USD
1
Month
LIBOR
1.400
Morgan
Stanley
Capital
I,
Inc.
USD
1
Month
LIBOR
1.000
MultiPlan
,
Inc.
Term
Loan
B
USD
3
Month
LIBOR
2.750
Navient
Student
Loan
Trust
USD
1
Month
LIBOR
0.600
New
Century
Home
Equity
Loan
Trust
USD
1
Month
LIBOR
0.480
Nexstar
Broadcasting,
Inc.
Term
Loan
B4
USD
1
Month
LIBOR
2.750
Nomura
Resecuritization
Trust
USD
1
Month
LIBOR
0.190
NYT
Mortgage
Trust
USD
1
Month
LIBOR
1.200
Option
Care
Helath
,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
4.500
Option
One
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.780
Panther
BF
Aggregator,
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
Term
Loan
USD
1
Month
LIBOR
2.500
Phoenix
Guarantor,
Inc.
Term
Loan
B1
USD
1
Month
LIBOR
4.500
PMT
Credit
Risk
Transfer
Trust
USD
1
Month
LIBOR
2.000
PMT
Credit
Risk
Transfer
Trust
USD
1
Month
LIBOR
2.700
Popular
ABS
Mortgage
Pass-Through
Trust
USD
1
Month
LIBOR
0.250
Popular
ABS
Mortgage
Pass-Through
Trust
USD
1
Month
LIBOR
0.260
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
Term
Loan
B1
USD
1
Month
LIBOR
3.250
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
1.550
Royal
Bank
of
Scotland
Group
PLC
USD
3
Month
LIBOR
1.762
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
0.330
SLM
Private
Credit
Student
Loan
Trust
USD
3
Month
LIBOR
0.290
SMB
Private
Education
Loan
Trust
USD
1
Month
LIBOR
1.000
Sotera
Health
Holdings
LLC
Term
Loan
USD
3
Month
LIBOR
4.500
Sprint
Corp.
Term
Loan
B
USD
1
Month
LIBOR
2.500
Stars
Group
Holdings
BV
Term
Loan
B
USD
3
Month
LIBOR
3.500
Structured
Asset
Investment
Loan
Trust
USD
1
Month
LIBOR
0.720
Structured
Asset
Securities
Corp.
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.260
Sungard
AS
New
Holdings
III
LLC
Term
Loan
USD
3
Month
LIBOR
7.500
Sungard
Availability
Services
Capital,
Inc.
Term
Loan
USD
3
Month
LIBOR
4.000
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
115
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
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
Term
Loan
B5
USD
1
Month
LIBOR
1.750
UBS
Group
AG
USD
Swap
Semiannual
30/360
(versus
3
Month
LIBOR)
5
Year
Rate
4.344
UBS
Group
AG
USD
3
Month
LIBOR
1.468
UFC
Holdings
LLC
Term
Loan
USD
1
Month
LIBOR
3.250
Univision
Communications,
Inc.
Term
Loan
C5
USD
1
Month
LIBOR
2.750
VFH
Parent
LLC
Term
Loan
B
USD
1
Month
LIBOR
3.500
VICI
Properties,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.000
Virgin
Media
Secured
Finance
PLC
Term
Loan
USD
1
Month
LIBOR
2.500
Voya
CLO,
Ltd.
USD
3
Month
LIBOR
1.250
VVC
Holdings
Corp.
Term
Loan
B
USD
3
Month
LIBOR
4.500
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
Washington
Mutual
Mortgage
Pass-Through
Certificates
Trust
USD
1
Month
LIBOR
0.320
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
3
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
110
AUD
15,725
03/20
(200)
Canadian
10
Year
Government
Bond
Futures
206
CAD
28,321
03/20
(397)
Euro-BTP
Futures
38
EUR
5,413
03/20
9
Eurodollar
Futures
116
USD
28,510
06/20
174
Eurodollar
Futures
143
USD
35,171
12/20
12
Eurodollar
Futures
133
USD
32,731
03/21
50
Federal
Fund
30
Day
Futures
32
USD
13,130
05/20
(24)
Federal
Fund
30
Day
Futures
32
USD
13,134
07/20
(38)
Japan
10
Year
Government
Bond
Futures
6
JPY
913,08
0
03/20
(7)
United
States
2
Year
Treasury
Note
Futures
565
USD
121,75
8
03/20
(76)
United
States
5
Year
Treasury
Note
Futures
966
USD
114,57
7
03/20
(301)
United
States
10
Year
Treasury
Note
Futures
1,357
USD
174,268
03/20
(1,565)
United
States
10
Year
Ultra
Treasury
Note
Futures
36
USD
5,065
03/20
(60)
United
States
Treasury
Long
Bond
Futures
242
USD
37,729
03/20
(764)
United
States
Treasury
Ultra
Bond
Futures
220
USD
39,964
03/20
(1,252)
Short
Positions
Australia
10
Year
Government
Bond
Futures
67
AUD
9,578
03/20
119
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
116
Strategic
Bond
Fund
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Euro-
Bobl
Futures
105
EUR
14,031
03/20
103
Euro-Bund
Futures
192
EUR
32,734
03/20
400
Eurodollar
Futures
316
USD
77,62
9
03/20
14
Euro-OAT
Futures
45
EUR
7,325
03/20
133
Japan
10
Year
Government
Bond
Futures
2
JPY
304,360
03/20
19
Long
Gilt
Futures
131
GBP
17,211
03/20
191
United
States
2
Year
Treasury
Note
Futures
85
USD
18,318
03/20
8
United
States
5
Year
Treasury
Note
Futures
14
USD
1,661
03/20
5
United
States
10
Year
Ultra
Treasury
Note
Futures
80
USD
11,256
03/20
148
United
States
Treasury
Long
Bond
Futures
122
USD
19,021
03/20
470
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(2,829)
Options
Written
Amounts
in
thousands
(except
contract
amounts)
Description
Counterparty
Call/Put
Number
of
Contracts
Strike
Price
Notional
Amount
Expiration
Date
Fair
Value
$
Swaption
(Counterparty,
Fund
Receives/Fund
Pays,
Notional,
Termination
Date)
Bank
of
America,
USD
1.37%/USD
3
Month
LIBOR,
USD
980,
02/04/20
Bank
of
America
Call
1
0.00
980
02/04/20
—
Bank
of
America,
USD
3
Month
LIBOR/
USD
1.77%,
USD
980,
02/04/20
Bank
of
America
Put
1
0.00
980
02/04/20
(2)
United
States
5
Year
Treasury
Note
Futures
Bank
of
America
Call
25
119.00
USD
2,975
01/24/20
(3)
United
States
5
Year
Treasury
Note
Futures
Bank
of
America
Put
25
118.00
USD
2,950
01/24/20
(2)
United
States
5
Year
Treasury
Note
Futures
Bank
of
America
Put
21
118.25
USD
2,483
01/24/20
(3)
United
States
10
Year
Treasury
Note
Futures
Bank
of
America
Call
14
129.25
USD
1,810
01/24/20
(3)
United
States
10
Year
Treasury
Note
Futures
Bank
of
America
Call
15
129.50
USD
1,943
01/24/20
(2)
United
States
10
Year
Treasury
Note
Futures
Bank
of
America
Call
12
131.00
USD
1,572
02/21/20
(2)
United
States
10
Year
Treasury
Note
Futures
Bank
of
America
Put
12
128.00
USD
1,536
02/21/20
(7)
Total
Liability
for
Options
Written
(premiums
received
$43)
(24)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
2,660
HUF
802,208
02/26/20
66
Bank
of
America
USD
1,751
MXN
34,215
02/26/20
44
Bank
of
America
USD
298
THB
9,008
02/26/20
3
Bank
of
America
USD
6,015
TRY
35,352
02/26/20
(152)
Bank
of
America
USD
1,751
ZAR
26,278
02/26/20
112
Bank
of
America
HKD
34,446
USD
4,394
02/26/20
(24)
Bank
of
America
SGD
5,996
USD
4,411
02/26/20
(49)
Bank
of
America
THB
53,187
USD
1,762
02/26/20
(16)
Bank
of
America
TRY
5,768
USD
969
02/26/20
12
Bank
of
Montreal
USD
4,550
JPY
491,500
03/18/20
(9)
Bank
of
Montreal
GBP
1,850
USD
2,447
03/18/20
(9)
Barclays
USD
3,819
CAD
5,083
01/17/20
96
Barclays
EUR
1,400
USD
1,551
01/17/20
(21)
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
117
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
USD
676
GBP
524
01/17/20
18
Citigroup
USD
1,124
GBP
916
01/17/20
90
Citigroup
USD
1,737
IDR
24,767,716
02/26/20
46
Citigroup
USD
1,346
INR
97,074
01/17/20
15
Citigroup
USD
4,551
JPY
491,500
03/18/20
(10)
Citigroup
USD
161
RUB
10,343
01/17/20
6
Citigroup
USD
6,131
RUB
396,081
02/26/20
215
Citigroup
USD
9,197
SEK
86,004
01/22/20
(6)
Citigroup
CNY
14,261
USD
1,995
01/17/20
(52)
Citigroup
EUR
671
USD
745
01/17/20
(9)
Citigroup
GBP
518
USD
699
01/17/20
12
Citigroup
GBP
1,850
USD
2,446
03/18/20
(10)
Citigroup
NOK
49,957
USD
5,545
01/22/20
(146)
Citigroup
PHP
223,591
USD
4,402
02/26/20
(1)
Citigroup
RUB
14,915
USD
231
01/17/20
(9)
Citigroup
RUB
16,899
USD
263
01/17/20
(9)
Citigroup
RUB
44,528
USD
686
01/17/20
(31)
Goldman
Sachs
USD
1,846
BRL
7,579
01/17/20
37
HSBC
USD
19,893
GBP
15,110
01/22/20
132
JPMorgan
Chase
USD
588
BRL
2,457
01/17/20
23
JPMorgan
Chase
USD
2,314
COP
7,990,133
01/10/20
116
JPMorgan
Chase
USD
53
CZK
1,230
03/16/20
1
JPMorgan
Chase
USD
6,377
GBP
4,833
02/18/20
33
JPMorgan
Chase
USD
4,337
JPY
469,062
02/18/20
(10)
JPMorgan
Chase
USD
5,289
KRW
6,272,178
01/15/20
141
JPMorgan
Chase
USD
1,614
MXN
32,104
01/17/20
80
JPMorgan
Chase
USD
4,658
NOK
42,782
03/16/20
216
JPMorgan
Chase
USD
4,521
PLN
17,492
03/16/20
91
JPMorgan
Chase
USD
9,337
SEK
88,455
03/16/20
140
JPMorgan
Chase
AUD
3,295
USD
2,273
02/18/20
(42)
JPMorgan
Chase
BRL
1,099
USD
262
01/10/20
(11)
JPMorgan
Chase
BRL
1,099
USD
262
01/13/20
(11)
JPMorgan
Chase
BRL
8,085
USD
1,913
01/17/20
(96)
JPMorgan
Chase
CAD
2,562
USD
1,937
03/16/20
(36)
JPMorgan
Chase
CHF
7,737
USD
7,904
03/16/20
(130)
JPMorgan
Chase
COP
12,684,002
USD
3,611
01/23/20
(244)
JPMorgan
Chase
EUR
9,976
USD
11,153
02/18/20
(69)
JPMorgan
Chase
HKD
811
USD
104
03/16/20
—
JPMorgan
Chase
HUF
1,554,603
USD
5,215
03/16/20
(73)
JPMorgan
Chase
IDR
25,035,556
USD
1,763
01/10/20
(47)
JPMorgan
Chase
IDR
4,231,000
USD
301
01/13/20
(4)
JPMorgan
Chase
IDR
25,035,556
USD
1,766
01/13/20
(43)
JPMorgan
Chase
JPY
39,894
USD
375
01/17/20
7
JPMorgan
Chase
MXN
66,349
USD
3,405
03/17/20
(65)
JPMorgan
Chase
NZD
9,190
USD
6,058
02/18/20
(132)
JPMorgan
Chase
PEN
2,661
USD
788
01/10/20
(15)
JPMorgan
Chase
PEN
802
USD
236
01/13/20
(6)
JPMorgan
Chase
PEN
2,661
USD
783
01/13/20
(20)
JPMorgan
Chase
PEN
4,478
USD
1,318
01/14/20
(33)
JPMorgan
Chase
PEN
4,144
USD
1,227
01/15/20
(24)
JPMorgan
Chase
PEN
4,144
USD
1,227
01/16/20
(23)
JPMorgan
Chase
PEN
8,925
USD
2,622
01/23/20
(70)
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
118
Strategic
Bond
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
JPMorgan
Chase
RUB
22,967
USD
357
01/17/20
(13)
JPMorgan
Chase
RUB
24,277
USD
378
01/17/20
(12)
JPMorgan
Chase
SGD
13,040
USD
9,598
03/16/20
(104)
JPMorgan
Chase
THB
51,270
USD
1,697
01/14/20
(16)
JPMorgan
Chase
THB
232,033
USD
7,673
01/17/20
(76)
Royal
Bank
of
Canada
USD
3,668
CAD
4,828
01/22/20
50
Royal
Bank
of
Canada
USD
9,712
GBP
7,400
03/18/20
110
Royal
Bank
of
Canada
USD
4,551
JPY
491,500
03/18/20
(9)
Royal
Bank
of
Canada
CHF
12,643
USD
12,927
01/22/20
(151)
Royal
Bank
of
Canada
GBP
1,850
USD
2,446
03/18/20
(9)
Standard
Chartered
USD
4,550
JPY
491,500
03/18/20
(9)
Standard
Chartered
GBP
1,850
USD
2,447
03/18/20
(8)
State
Street
USD
367
CLP
279,026
02/26/20
4
State
Street
USD
4,406
COP
15,138,860
02/26/20
188
State
Street
USD
754
HKD
5,881
02/26/20
1
State
Street
USD
953
KRW
1,111,915
02/26/20
10
State
Street
USD
4,402
MYR
18,272
02/26/20
74
State
Street
USD
746
PEN
2,508
02/26/20
10
State
Street
USD
749
PHP
37,984
02/26/20
(1)
State
Street
USD
764
SGD
1,035
02/26/20
5
State
Street
USD
309
TWD
9,221
02/26/20
1
State
Street
COP
2,797,323
USD
830
02/26/20
(19)
State
Street
HUF
151,623
USD
515
02/26/20
—
State
Street
IDR
4,237,219
USD
301
02/26/20
(4)
State
Street
MXN
6,292
USD
328
02/26/20
(2)
State
Street
MYR
3,050
USD
736
02/26/20
(11)
State
Street
PEN
14,931
USD
4,417
02/26/20
(82)
State
Street
RUB
74,625
USD
1,185
02/26/20
(11)
State
Street
TWD
53,663
USD
1,777
02/26/20
(24)
State
Street
ZAR
5,004
USD
345
02/26/20
(10)
UBS
CLP
1,403,533
USD
1,812
02/26/20
(56)
UBS
EUR
7,406
USD
8,282
01/22/20
(35)
UBS
JPY
566,609
USD
5,185
01/22/20
(34)
UBS
KRW
7,192,712
USD
6,182
02/26/20
(48)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(306)
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
8.410%
(3)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
1
8
9
Citigroup
BRL
2,300
8.410%
(3)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
1
17
18
Citigroup
BRL
2,600
8.410%
(3)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
1
20
21
Citigroup
BRL
4,000
8.410%
(2)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
2
30
32
Citigroup
BRL
11,431
8.410%
(2)
Brazil
Interbank
Deposit
Rate
(5)
01/02/20
—
90
90
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
119
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
2,100
7.024%
(3)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
—
13
13
Citigroup
BRL
2,400
7.024%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
1
14
15
Citigroup
BRL
2,631
7.024%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
2
14
16
JPMorgan
Chase
BRL
1,700
7.044%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
—
11
11
JPMorgan
Chase
HUF
640,150
Six
Month
BUBOR
(2)
0.930%
(4)
04/05/27
—
42
42
JPMorgan
Chase
HUF
1,080,700
Six
Month
BUBOR
(1)
1.848%
(4)
04/05/27
—
(209)
(209)
Merrill
Lynch
USD
5,040
Three
Month
LIBOR
(5)
1.732%
(3)
06/27/21
—
(1)
(1)
Merrill
Lynch
USD
7,584
Federal
Fund
Effective
Rate
(3)
1.350%
(3)
09/15/21
(1)
15
14
Merrill
Lynch
USD
44,496
Three
Month
LIBOR
(3)
1.550%
(3)
06/30/26
72
552
624
Merrill
Lynch
USD
12,827
Three
Month
LIBOR
(5)
1.520%
(3)
07/31/26
46
160
206
Merrill
Lynch
USD
5,994
Federal
Fund
Effective
Rate
(3)
1.550%
(3)
11/15/26
8
(4)
4
Merrill
Lynch
MXN
40,840
7.450%
(3)
Mexico
Interbank
28
Day
Deposit
Rate
(1)
07/18/29
17
85
102
Merrill
Lynch
USD
384
Three
Month
LIBOR
(5)
2.875%
(3)
05/15/44
1
(61)
(60)
Merrill
Lynch
USD
3,184
Three
Month
LIBOR
(2)
1.810%
(3)
11/15/44
(30)
209
179
Merrill
Lynch
USD
5,708
Three
Month
LIBOR
(3)
1.850%
(3)
11/15/44
12
263
275
Total
Open
Interest
Rate
Swap
Contracts
(å)
133
1,268
1,401
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
17,721
5.000%
(2)
12/20/24
1,260
477
1,737
CDX
NA
High
Yield
Index
Merrill
Lynch
Sell
USD
574
5.000%
(2)
12/20/24
43
13
56
CDX
NA
Investment
Grade
Index
Merrill
Lynch
Sell
USD
6,280
1.000%
(2)
12/20/24
124
41
165
Total
Open
Credit
Indices
Contracts
(å)
1,427
531
1,958
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
120
Strategic
Bond
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
Long-Term
Investments
Asset-Backed
Securities
$
—
$
46,690
$
596
$
—
$
47,286
5.2
Corporate
Bonds
and
Notes
—
161,678
—
—
161,678
17.6
International
Debt
—
94,556
—
—
94,556
10.3
Loan
Agreements
—
12,091
—
—
12,091
1.3
Mortgage-Backed
Securities
—
280,984
—
—
280,984
30.6
Non-US
Bonds
—
62,502
—
—
62,502
6.8
United
States
Government
Treasuries
—
154,230
—
—
154,230
16.8
Common
Stocks
—
—
35
35
—
*
Options
Purchased
29
—
—
—
29
—
*
Short-Term
Investments
—
79,05
3
—
16,80
4
95,857
10.5
Total
Investments
29
891,78
4
631
16,80
4
909,248
99.1
Other
Assets
and
Liabilities,
Net
0.9
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
1,855
—
—
—
1,855
0.
2
Foreign
Currency
Exchange
Contracts
—
2,205
—
—
2,205
0.2
Interest
Rate
Swap
Contracts
—
1,671
—
—
1,671
0.2
Credit
Default
Swap
Contracts
—
1,958
—
—
1,958
0.2
A
Liabilities
Futures
Contracts
(4,684)
—
—
—
(4,684)
(0.5)
Options
Written
(22)
(2)
—
—
(24)
(—)
*
Foreign
Currency
Exchange
Contracts
—
(2,511)
—
—
(2,511)
(0.
3
)
Interest
Rate
Swap
Contracts
—
(270)
—
—
(270)
(—)
*
Total
Other
Financial
Instruments
**
$
(2,851)
$
3,051
$
—
$
—
$
200
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
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
December
31,
2019,
were
less
than
1%
of
net
assets.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
121
Amounts
in
thousands
Country
Exposure
Fair
Value
$
Argentina
................................................................................
592
Australia
.................................................................................
569
Brazil
......................................................................................
5,798
Canada
....................................................................................
14,595
Cayman
Islands
.......................................................................
19,360
Chile
.......................................................................................
1,480
China
......................................................................................
628
Colombia
.................................................................................
9,436
Curacao
...................................................................................
39
Denmark
.................................................................................
1,573
Ecuador
..................................................................................
178
Finland
...................................................................................
275
France
.....................................................................................
6,658
Guernsey
.................................................................................
1,099
India
.......................................................................................
262
Indonesia
................................................................................
5,471
Ireland
....................................................................................
1,643
Isle
of
Man
..............................................................................
720
Italy
........................................................................................
2,737
Japan
......................................................................................
1,615
Kazakhstan
.............................................................................
231
Kuwait
....................................................................................
226
Luxembourg
............................................................................
1,657
Macao
.....................................................................................
439
Malaysia
..................................................................................
6,139
Mexico
....................................................................................
17,785
Netherlands
............................................................................
13,222
Norway
....................................................................................
4,332
Panama
...................................................................................
736
Peru
........................................................................................
5,116
Poland
.....................................................................................
573
Qatar
.......................................................................................
507
Russia
.....................................................................................
5,047
Singapore
................................................................................
10,113
South
Korea
............................................................................
953
Spain
.......................................................................................
1,050
Sweden
....................................................................................
1,057
Switzerland
.............................................................................
1,421
Thailand
..................................................................................
227
United
Arab
Emirates
.............................................................
1,173
United
Kingdom
......................................................................
12,272
United
States
...........................................................................
750,244
Total
Investments
....................................................................
909,248
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
122
Strategic
Bond
Fund
Russell
Investment
Funds
Strategic
Bond
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
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*
$
—
$
—
$
29
Unrealized
appreciation
on
foreign
currency
exchange
contracts
—
2,205
—
Variation
margin
on
futures
contracts**
—
—
1,855
Interest
rate
swap
contracts,
at
fair
value
—
—
1,671
Credit
default
swap
contracts,
at
fair
value
1,958
—
—
Total
$
1,958
$
2,205
$
3,555
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts**
$
—
$
—
$
4,684
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
2,511
—
Options
written,
at
fair
value
—
—
24
Interest
rate
swap
contracts,
at
fair
value
—
—
270
Total
$
—
$
2,511
$
4,978
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)
$
(169)
Futures
contracts
—
15
19,5
55
Options
written
—
35
726
Interest
rate
swap
contracts
—
—
(2,024)
Credit
default
swap
contracts
2,007
—
—
Foreign
currency
exchange
contracts
—
508
—
Total
$
2,007
$
512
$
18,
088
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments****
$
—
$
(24)
$
15
Futures
contracts
—
(85)
(
8
,
975
)
Options
written
—
32
65
Interest
rate
swap
contracts
—
—
1,248
Credit
default
swap
contracts
930
—
—
Foreign
currency
exchange
contracts
—
(140)
—
Total
$
930
$
(
217
)
$
(7,
647
)
*
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
Statement
of
Operations.
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
123
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
Options
Purchased
Contracts
Investments,
at
fair
value
$
29
$
—
$
29
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
2,205
—
2,205
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
1,671
—
1,671
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
1,958
—
1,958
Total
Financial
and
Derivative
Assets
5,863
—
5,863
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(3,391)
—
(3,391)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
2,472
$
—
$
2,472
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
$
238
$
238
$
—
$
—
Barclays
96
21
—
75
Citigroup
615
263
270
82
Goldman
Sachs
37
—
37
—
HSBC
132
—
—
132
JPMorgan
Chase
901
828
—
73
Royal
Bank
of
Canada
160
68
—
92
State
Street
293
164
—
129
Total
$
2,472
$
1,
582
$
307
$
583
Russell
Investment
Funds
Strategic
Bond
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
124
Strategic
Bond
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
$
2,511
$
—
$
2,511
Options
Written
Contracts
Options
written,
at
fair
value
24
—
24
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
270
—
270
Total
Financial
and
Derivative
Liabilities
2,805
—
2,805
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(82
)
—
(8
2
)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
2,72
3
$
—
$
2,72
3
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
$
245
$
238
$
—
$
7
Bank
of
Montreal
18
—
—
18
Barclays
21
21
—
—
Citigroup
282
2
63
—
19
JPMorgan
Chase
1,633
828
7
40
65
Royal
Bank
of
Canada
170
68
—
102
Standard
Chartered
17
—
—
17
State
Street
164
164
—
—
UBS
173
—
—
173
Total
$
2,723
$
1,
582
$
7
40
$
401
^ 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.
Strategic
Bond
Fund
125
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
891,187
Investments,
at
fair
value(>)
...........................................................................................................................................................
909,248
Cash
...............................................................................................................................................................................................
9,575
Foreign
currency
holdings(^)
.........................................................................................................................................................
3,351
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
2,205
Receivables:
Dividends
and
interest
.......................................................................................................................................................
4,892
Dividends
from
affiliated
funds
..........................................................................................................................................
26
Investments
sold
................................................................................................................................................................
19,686
Fund
shares
sold
................................................................................................................................................................
14
From
broker
(a)(b)
...............................................................................................................................................................
1
0,9
53
Variation
margin
on
futures
contracts
.................................................................................................................................
348
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
1,671
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
1,958
Total
assets
.................................................................................................................................................
96
3
,
9
27
Liabilities
Payables:
Due
to
broker
(
c
)
(
d
)
............................................................................................................................................................
1
,
8
93
Investments
purchased
......................................................................................................................................................
37,518
Fund
shares
redeemed
.......................................................................................................................................................
84
Accrued
fees
to
affiliates
....................................................................................................................................................
475
Other
accrued
expenses
.....................................................................................................................................................
184
Variation
margin
on
futures
contracts
.................................................................................................................................
3,166
Deferred
capital
gains
tax
liability
.....................................................................................................................................
12
Unfunded
loan
commitment
...............................................................................................................................................
20
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
2,511
Options
written,
at
fair
value(x)
......................................................................................................................................................
24
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
270
Total
liabilities
.............................................................................................................................................
46,
1
57
Net
Assets
............................................................................................................................................................
$
917,770
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
126
Strategic
Bond
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2019
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
8,97
9
Shares
of
beneficial
interest
...........................................................................................................................................................
8
69
Additional
paid-in
capital
..............................................................................................................................................................
907,92
2
Net
Assets
............................................................................................................................................................
$
917,77
0
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.56
Net
assets
...............................................................................................................................................................................
$
917,770,135
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
86,941,148
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
3,293
(x)
Premiums
received
on
options
written
$
43
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
1,427
(•)
Interest
rate
swap
contracts
-
premiums
paid
(received)
$
133
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
$
16,804
(a)
Receivable
from
Broker
for
Futures
$
10,213
(b)
Receivable
from
Broker
for
Forwards
$
740
(c)
Due
to
Broker
for
Swaps
$
1
,
62
3
(d) Due
to
Broker
for
Forwards
$
270
(#)
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.
Strategic
Bond
Fund
127
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Dividends
from
affiliated
funds
.........................................................................................................................................
$
989
Interest
..............................................................................................................................................................................
28,019
Total
investment
income
...............................................................................................................................................................
29,008
Expenses
Advisory
fees
....................................................................................................................................................................
4,983
Administrative
fees
...........................................................................................................................................................
453
Custodian
fees
...................................................................................................................................................................
335
Transfer
agent
fees
............................................................................................................................................................
39
Professional
fees
...............................................................................................................................................................
150
Trustees’
fees
....................................................................................................................................................................
39
Printing
fees
......................................................................................................................................................................
124
Miscellaneous
...................................................................................................................................................................
27
Total
expenses
...............................................................................................................................................................................
6,150
Net
investment
income
(loss)
........................................................................................................................................................
22,858
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
14,720
Investments
in
affiliated
funds
..........................................................................................................................................
18
Futures
contracts
..............................................................................................................................................................
19,570
Options
written
.................................................................................................................................................................
761
Foreign
currency
exchange
contracts
................................................................................................................................
508
Interest
rate
swap
contracts
...............................................................................................................................................
(2,024)
Credit
default
swap
contracts
............................................................................................................................................
2,007
Foreign
currency-related
transactions
...............................................................................................................................
1
Net
realized
gain
(loss)
..................................................................................................................................................................
35,561
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
27,699
Investments
in
affiliated
funds
..........................................................................................................................................
1
Futures
contracts
..............................................................................................................................................................
(9,060)
Options
written
.................................................................................................................................................................
97
Foreign
currency
exchange
contracts
................................................................................................................................
(140)
Interest
rate
swap
contracts
...............................................................................................................................................
1,248
Credit
default
swap
contracts
............................................................................................................................................
930
Foreign
currency-related
transactions
...............................................................................................................................
134
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
20,909
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
56,470
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
79,328
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
128
Strategic
Bond
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
22,858
$
21,715
Net
realized
gain
(loss)
......................................................................................................................
35,561
(23,026)
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
20,909
(6,627)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
79,328
(7,938)
Distributions
To
shareholders
.................................................................................................................................
(36,716)
(18,804)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(36,716)
(18,804)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(3,503)
(1,964)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
39,109
(28,706)
Net
Assets
Beginning
of
period
.................................................................................................................................
878,661
907,367
End
of
period
..........................................................................................................................................
$
917,770
$
878,661
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
2,937
$
30,89
5
3,617
$
36,596
Proceeds
from
reinvestment
of
distributions
3,485
36,71
6
1,872
18,804
Payments
for
shares
redeemed
(6,759)
(71,114)
(5,709)
(57,364)
Total
increase
(decrease)
(337)
$
(3,503)
(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.
130
Strategic
Bond
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2019
10.07
.27
.65
.92
(.29)
(.14)
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
131
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.43)
10.56
9.19
917,770
.68
.68
2.52
116
(.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
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
132
Strategic
Bond
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
the
Assets
and
Liabilities
have
been
adjusted
by
the
following
amounts
(in
thousands):
As
permitted
by
tax
regulations,
the
Fund
intends
to
defer
a
net
realized
capital
loss
of
$5,164,455
incurred
from
November
1,
2019
to
December
31,
2019,
and
treat
it
as
arising
in
the
fiscal
year
2020.
Advisory
fees
$
428,165
Administration
fees
38,924
Transfer
agent
fees
3,426
Trustee
fees
4,691
$
475,206
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
$
581,612
$
623,246
$
18
$
1
$
16,804
$
989
$
—
$
58,419
$
581,612
$
623,246
$
18
$
1
$
16,804
$
989
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
897,882,100
$
16,762,329
$
(4,905,907)
$
11,856,422
$
2,256,071
$
—
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
33,102,127
$
3,613,267
$
—
$
18,803,832
$
—
$
—
Total
distributable
earnings
(losses)
$
34
Additional
paid-in
capital
(34)
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2019
(Unaudited)
Global
Real
Estate
Securities
Fund
133
Global
Real
Estate
Securities
Fund
Total
Return
1
Year
21
.64%
5
Years
5
.78%§
10
Years
8
.66%§
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(Net)**
Total
Return
1
Year
21
.91%
5
Years
5
.56%§
10
Years
8
.37%§
MSCI
World
Index
(Net)***
Total
Return
1
Year
27
.67%
5
Years
8
.74%§
10
Years
9
.47%§
Global
Real
Estate
Linked
Benchmark****
Total
Return
1
Year
21
.91%
5
Years
5
.56%§
10
Years
8
.96%§
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
134
Global
Real
Estate
Securities
Fund
The
Global
Real
Estate
Securities
Fund
(the
“Fund”)
employs
a
multi-manager
approach
whereby
Russell
Investment
Management,
LLC
(“RIM”)
manages
a
portion
of
the
Fund’s
assets
based
upon
model
portfolios
provided
by
multiple
non-
discretionary
money
managers.
The
Fund’s
money
managers
have
non-discretionary
assignments
pursuant
to
which
they
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
RIM
also
manages
the
portion
of
the
Fund's
assets
that
RIM
determines
not
to
manage
based
upon
model
portfolios
provided
by
the
Fund's
money
managers.
RIM
may
change
the
allocation
of
the
Fund’s
assets
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2019,
the
Fund
had
two
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
current
income
and
long
term
capital
growth.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2019?
For
the
fiscal
year
ended
December
31,
2019,
the
Fund
gained
21.64%.
This
is
compared
to
the
Fund’s
benchmark,
the
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(Net),
which
gained
21.91%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2019,
the
Morningstar
®
Insurance
Global
Real
Estate
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
22.49%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
For
the
fiscal
year
ended
December
31,
2019,
the
global
listed
property
market,
as
measured
by
the
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(Net),
delivered
a
21.91%
return,
while
underperforming
broader
global
equities.
Within
the
global
property
securities
market,
all
regions
posted
double-
digit
returns.
Europe
led
the
index
with
strong
performance
in
the
U.K.,
as
uncertainty
around
Brexit
was
moderated
after
U.K.’s
Conservative
Party
won
a
majority
in
the
country’s
general
elections
in
December.
North
America
followed
with
Canada
ahead
of
the
U.S.
Asia
was
the
weakest
performer,
underperforming
the
broader
index,
weighted
down
by
Hong
Kong
as
the
city’s
ongoing
anti-government
protests
and
an
economy
in
technical
recession
continued
to
weigh
on
the
local
market.
With
respect
to
property
sectors,
there
was
a
wide
dispersion
in
performance.
The
industrial
and
residential
sectors
were
the
strongest
performers
finishing
with
double-digit
returns.
The
more
cyclical
office
sector
was
also
a
solid
performer,
while
self-storage
and
malls
property
types
finished
with
weak
returns.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
The
Fund
modestly
underperformed
its
benchmark
for
the
one-year
period
ending
December
31,
2019.
Detracting
from
performance
was
an
overweight
to
Hong
Kong
and
an
underweight
position
to
the
U.S.
industrial
sector.
Positive
stock
selection
within
the
U.S.
health
care
and
self-storage
sectors
as
well
as
an
overweight
position
to
the
U.S.
residential
sector
were
beneficial.
Stock
selection
within
Japanese
REITs
and
Singapore
added
value.
The
Fund’s
money
managers
have
non-discretionary
assignments
pursuant
to
which
they
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
With
respect
to
this
portion
of
the
Fund,
RIM
manages
the
Fund’s
assets
based
upon
the
model
portfolios
provided
by
the
Fund’s
money
managers.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
the
Fund’s
money
managers,
Cohen
&
Steers
Capital
Management,
Inc.,
Cohen
&
Steers
UK
Limited
and
Cohen
&
Steers
Asia
Limited
(together,
“Cohen
&
Steers”)
outperformed
the
Fund’s
benchmark
for
the
fiscal
year.
Cohen
&
Steers
seeks
to
generate
excess
returns
through
a
combination
of
fundamental
bottom-up
stock
selection
and
top-down
regional
and
property
type
allocation
decisions.
The
key
contributors
to
outperformance
were
bottom-up
stock
selection
within
the
U.K.
and
Australia.
Also
contributing
positively
was
an
underweight
to
the
U.S.
malls
sector
and
overweights
to
the
U.S.
residential
and
self-storage
sectors.
Detracting
from
performance
was
negative
stock
selection
within
the
U.S.
office
sector.
RREEF
America
L.L.C.,
Deutsche
Investments
Australia
Limited
and
Deutsche
Alternatives
Asset
Management
(Global)
Limited
(together,
“Deutsche
Asset
Management”)
provided
the
best
performing
strategy,
outperforming
the
Fund’s
benchmark
for
the
fiscal
year.
Stock
selection
within
the
U.S.
was
a
key
contributor
to
outperformance.
Results
were
positive
within
the
malls,
health
care
and
lodging
sectors.
In
addition,
stock
selection
within
Japan
was
beneficial.
Negative
stock
selection
within
Hong
Kong
detracted
from
performance.
During
the
period,
RIM
continued
to
utilize
a
strategy
to
implement
regional
and
property
sector
tilting
through
the
direct
purchase
of
real
estate
stocks.
Using
the
output
from
a
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2019
(Unaudited)
Global
Real
Estate
Securities
Fund
135
quantitative
model,
the
strategy
seeks
to
position
the
portfolio
to
meet
RIM’s
overall
preferred
positioning
with
respect
to
regional
and
property
type
exposures.
The
strategy
outperformed
relative
to
the
Fund’s
benchmark
for
the
one-year
period.
Positive
performance
was
driven
by
an
underweight
position
to
Hong
Kong
as
well
as
overweights
to
the
U.S.
health
care
and
residential
sectors.
Detracting
from
performance
was
an
overweight
to
the
U.S.
malls
sector.
During
the
period,
the
Fund
used
index
futures
and
swap
contracts
to
equitize
the
Fund’s
cash.
The
use
of
these
derivatives
had
a
modestly
positive
impact
on
absolute
performance,
as
global
equity
markets
delivered
positive
returns.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
In
June
2019,
Morgan
Stanley
Investment
Management,
Inc.,
Morgan
Stanley
Investment
Management
Limited
and
Morgan
Stanley
Investment
Management
Company
(“Morgan
Stanley”),
Cohen
&
Steers
and
Deutsche
Asset
Management
were
transitioned
from
discretionary
to
non-discretionary
mandates.
In
September
2019,
RIM
terminated
Morgan
Stanley
and
increased
the
allocations
to
Cohen
&
Steers
and
Deutsche
Asset
Management.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2019
Styles
Cohen
&
Steers
Capital
Management,
Inc.,
Cohen
&
Steers
UK
Limited
and
Cohen
&
Steers
Asia
Limited
Market-Oriented
RREEF
America
L.L.C.,
Deutsche
Investments
Australia
Limited
and
Deutsche
Alternatives
Asset
Management
(Global)
Limited
operating
under
the
brand
name
Deutsche
Asset
Management
Market-Oriented
*
Assumes
initial
investment
on
January
1,
2010.
**
The
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(Net)
is
an
unmanaged
market-weighted
total
return
index,
which
consists
of
publicly
traded
equity
REITs
and
listed
property
companies
from
developed
markets
whose
floats
are
larger
than
$100
million
and
derive
more
than
half
of
their
revenue
from
property-
related
activities
and
is
net
of
dividend
withholding
taxes.
***
The
MSCI
World
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
23
developed
market
country
indexes.
****
The
Global
Real
Estate
Linked
Benchmark
provides
a
means
to
compare
the
Fund’s
average
annual
returns
to
a
secondary
benchmark
that
takes
into
account
historical
changes
in
the
Fund’s
primary
benchmark.
The
Global
Real
Estate
Linked
Benchmark
represents
the
returns
of
the
FTSE
NAREIT
Equity
REIT
Index
through
September
30,
2010
and
the
returns
of
the
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(net)
thereafter.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Shareholder
Expense
Example
—
December
31,
2019
(Unaudited)
136
Global
Real
Estate
Securities
Fund
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
July
1,
2019
to
December
31,
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
July
1,
2019
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2019
$
1,063.00
$
1,020.57
Expenses
Paid
During
Period*
$
4.78
$
4.69
*
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
184/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
137
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
95.4%
Australia
-
3.3%
BGP
Holdings
PLC(Æ)(Š)
926,311
—
Charter
Hall
Group
-
ADR(ö)
439,421
3,422
Cromwell
Property
Group(ö)
1,683,246
1,390
Dexus
Property
Group(Æ)(ö)
91,050
749
Goodman
Group(ö)
736,641
6,925
GPT
Group
(The)(ö)
1,699,791
6,691
Mirvac
Group(ö)
5,329,286
11,919
31,096
Austria
-
0.2%
CA
Immobilien
Anlagen
AG
52,923
2,224
Belgium
-
0.8%
Aedifica
(ö)
30,794
3,918
VGP
NV
11,472
1,130
Warehouses
De
Pauw
SCA(ö)
12,312
2,242
7,290
Canada
-
2.9%
Allied
Properties
Real
Estate
Investment
Trust(ö)
154,249
6,185
Boardwalk
Real
Estate
Investment
Trust(Ñ)(ö)
163,600
5,787
Canadian
Apartment
Properties(Ñ)(ö)
172,383
7,037
Granite
Real
Estate
Investment
Trust(ö)
121,302
6,163
InterRent
Real
Estate
Investment
Trust(ö)
213,534
2,572
27,744
China
-
0.5%
China
Overseas
Land
&
Investment,
Ltd.
682,000
2,663
GDS
Holdings,
Ltd.
-
ADR(Æ)(Ñ)
49,062
2,531
5,194
France
-
2.0%
ARGAN
SA(ö)
4,751
414
Covivio
(ö)
15,632
1,776
Gecina
SA(ö)
42,827
7,677
Klepierre
SA
-
GDR(ö)
250,326
9,515
19,382
Germany
-
4.1%
ADO
Properties
SA(Þ)
2,522
91
Alstria
Office
REIT-AG(ö)
258,238
4,853
Deutsche
Wohnen
SE
235,683
9,632
Instone
Real
Estate
Group
AG(Æ)(Þ)
72,518
1,794
LEG
Immobilien
AG
52,252
6,189
Vonovia
SE
312,784
16,838
39,397
Hong
Kong
-
5.5%
CK
Asset
Holdings,
Ltd.
149,000
1,080
ESR
Cayman,
Ltd.(Æ)(Þ)
987,400
2,230
Hang
Lung
Properties,
Ltd.
-
ADR
141,000
308
Link
Real
Estate
Investment
Trust(ö)
1,039,500
11,036
New
World
Development
Co.,
Ltd.
10,545,000
14,462
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Shimao
Property
Holdings,
Ltd.
594,500
2,309
Sino
Land
Co.,
Ltd.
2,434,000
3,546
Sun
Hung
Kai
Properties,
Ltd.
530,000
8,130
Swire
Properties,
Ltd.
1,911,800
6,353
Wharf
Real
Estate
Investment
Co.,
Ltd.
402,000
2,465
51,919
Japan
-
11.4%
Activia
Properties,
Inc.(ö)
2,720
13,640
Daibiru
Corp.
145,400
1,745
Daiwa
House
REIT
Investment
Corp.(ö)
142
371
Daiwa
Office
Investment
Corp.(ö)
23
177
Frontier
Real
Estate
Investment
Corp.(ö)
765
3,217
Global
One
Real
Estate
Investment
Corp.(ö)
1,793
2,324
GLP
J-REIT(Æ)(ö)
3,816
4,748
Hulic
REIT,
Inc.(ö)
2,102
3,815
Invincible
Investment
Corp.(ö)
471
268
Japan
Real
Estate
Investment
Corp.(ö)
66
438
Japan
Rental
Housing
Investments,
Inc.
(ö)
3,195
3,126
Japan
Retail
Fund
Investment
Corp.(ö)
1,636
3,517
Mitsubishi
Estate
Co.,
Ltd.
564,100
10,784
Mitsui
Fudosan
Co.,
Ltd.
751,200
18,347
Mitsui
Fudosan
Logistics
Park,
Inc.(ö)
650
2,886
MORI
Hills
REIT
Investment
Corp.
Class
A(ö)
3,001
4,985
MORI
Trust
Hotel
REIT,
Inc.(ö)
789
1,093
MORI
Trust
Sogo
REIT,
Inc.(ö)
1,485
2,666
Nippon
Building
Fund,
Inc.(ö)
629
4,609
Nippon
Prologis
REIT,
Inc.(Æ)(ö)
182
464
Nippon
REIT
Investment
Corp.(ö)
627
2,761
Nomura
Real
Estate
Master
Fund,
Inc.(ö)
2,195
3,751
Orix
JREIT,
Inc.(ö)
231
501
Premier
Investment
Corp.(ö)
1,318
1,865
Sumitomo
Realty
&
Development
Co.,
Ltd.
320,400
11,175
Tokyo
Tatemono
Co.,
Ltd.
18,300
286
Tokyu
Fudosan
Holdings
Corp.
426,600
2,946
XYMAX
REIT
Investment
Corp.(ö)
1,161
1,474
107,979
Netherlands
-
1.5%
InterXion
Holding
NV(Æ)
137,475
11,522
Unibail
-
Rodamco
-Westfield(ö)
14,823
2,342
13,864
Norway
-
0.4%
Entra
ASA(Þ)
216,882
3,584
Singapore
-
3.2%
CapitaLand,
Ltd.
2,349,200
6,552
City
Developments,
Ltd.
872,300
7,114
Frasers
Centrepoint
Trust(ö)
1,074,400
2,245
Keppel
DC
REIT(ö)
1,607,300
2,486
Mapletree
Commercial
Trust(ö)
260,100
462
Mapletree
Industrial
Trust(ö)
837,900
1,620
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
138
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Mapletree
Logistics
Trust(ö)
5,244,400
6,789
Parkway
Life
Real
Estate
Investment
Trust(Æ)(ö)
1,168,600
2,885
30,153
Spain
-
1.0%
Arima
Real
Estate
Socimi
SA(Æ)(ö)
84,610
1,073
Inmobiliaria
Colonial
Socimi
SA(ö)
130,992
1,671
Merlin
Properties
Socimi
SA(ö)
482,624
6,936
9,680
Sweden
-
2.1%
Castellum
AB
315,601
7,416
Catena
AB
47,469
2,096
Fabege
AB
314,534
5,231
Fastighets
AB
Balder
Class
B(Æ)
115,044
5,323
Hemfosa
Fastigheter
AB(Æ)
13,972
181
20,247
Switzerland
-
0.6%
Swiss
Prime
Site
AG
Class
A(Æ)
52,209
6,052
United
Kingdom
-
5.5%
Assura
PLC(ö)
2,576,850
2,664
Big
Yellow
Group
PLC(ö)
148,624
2,368
British
Land
Co.
PLC
(The)(ö)
536,866
4,571
Derwent
London
PLC(ö)
100,085
5,346
Grainger
PLC
727,531
3,020
Great
Portland
Estates
PLC(ö)
284,054
3,240
Intu
Properties
PLC
Class
H(Æ)(Ñ)(ö)
515,942
233
Land
Securities
Group
PLC(ö)
383,510
5,039
LondonMetric
Property
PLC(ö)
706,090
2,222
PRS
REIT
PLC
(The)(ö)
1,249,155
1,523
Safestore
Holdings
PLC(ö)
139,190
1,487
Segro
PLC(ö)
900,254
10,745
Tritax
EuroBox
PLC(Þ)
953,426
1,199
UNITE
Group
PLC
(The)(ö)
361,107
6,039
Urban
&
Civic
PLC
538,623
2,463
52,159
United
States
-
50.4%
Agree
Realty
Corp.(Ñ)(ö)
112,053
7,863
Alexandria
Real
Estate
Equities,
Inc.(ö)
70,248
11,351
American
Campus
Communities,
Inc.(ö)
10,300
484
American
Tower
Corp.(ö)
23,729
5,453
Americold
Realty
Trust(Ñ)(ö)
321,135
11,259
Apartment
Investment
&
Management
Co.
Class
A(ö)
161,837
8,359
Boyd
Gaming
Corp.
167,863
5,026
Brixmor
Property
Group,
Inc.(ö)
332,809
7,192
Columbia
Property
Trust,
Inc.(ö)
132,200
2,764
CoreSite
Realty
Corp.
Class
A(ö)
31,714
3,556
Cousins
Properties,
Inc.(ö)
111,624
4,599
CubeSmart
(ö)
23,937
754
CyrusOne
,
Inc.(ö)
85,829
5,616
DiamondRock
Hospitality
Co.(ö)
200,701
2,224
Digital
Realty
Trust,
Inc.(Ñ)(ö)
32,504
3,892
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Douglas
Emmett,
Inc.(ö)
162,638
7,140
EastGroup
Properties,
Inc.(ö)
34,683
4,601
Empire
State
Realty
Trust,
Inc.
Class
A(ö)
220,951
3,084
Equinix
,
Inc.(Æ)(ö)
11,390
6,648
Equity
LifeStyle
Properties,
Inc.
Class
A(ö)
149,507
10,524
Equity
Residential(ö)
248,967
20,146
Essential
Properties
Realty
Trust,
Inc.
(Ñ)(ö)
178,900
4,439
Essex
Property
Trust,
Inc.(ö)
54,935
16,528
Extra
Space
Storage,
Inc.(ö)
179,334
18,941
Healthcare
Trust
of
America,
Inc.
Class
A(ö)
122,661
3,714
Healthpeak
Properties,
Inc.(ö)
375,802
12,954
Highwoods
Properties,
Inc.(ö)
10,576
517
Hilton
Worldwide
Holdings,
Inc.
33,851
3,754
Host
Hotels
&
Resorts,
Inc.(ö)
124,326
2,306
Invitation
Homes,
Inc.(ö)
637,283
19,099
JBG
Smith
Properties(ö)
28,050
1,119
Jones
Lang
LaSalle,
Inc.
21,729
3,783
Kilroy
Realty
Corp.(ö)
217,989
18,289
Kimco
Realty
Corp.(ö)
781,734
16,190
Liberty
Property
Trust(ö)
37,492
2,251
Life
Storage,
Inc.(Æ)(ö)
63,594
6,886
Macerich
Co.
(The)(Ñ)(ö)
11,952
322
Medical
Properties
Trust,
Inc.(ö)
672,413
14,195
Mid-America
Apartment
Communities,
Inc.(ö)
79,971
10,545
Omega
Healthcare
Investors,
Inc.(ö)
150,382
6,369
Paramount
Group,
Inc.(ö)
21,002
292
Park
Hotels
&
Resorts,
Inc.(ö)
242,968
6,286
Pebblebrook
Hotel
Trust(ö)
80,824
2,167
Physicians
Realty
Trust(ö)
18,400
348
Prologis,
Inc.(ö)
432,948
38,594
Public
Storage(ö)
22,365
4,763
Realty
Income
Corp.(ö)
184,643
13,595
Regency
Centers
Corp.(ö)
126,395
7,974
Rexford
Industrial
Realty,
Inc.(ö)
201,026
9,181
Ryman
Hospitality
Properties,
Inc.(ö)
65,654
5,690
Sabra
Health
Care
REIT,
Inc.(ö)
25,868
552
SBA
Communications
Corp.(ö)
2,096
505
Simon
Property
Group,
Inc.(ö)
130,128
19,384
SITE
Centers
Corp.(ö)
135,800
1,904
STORE
Capital
Corp.(ö)
222,875
8,300
Sun
Communities,
Inc.(ö)
34,220
5,136
Taubman
Centers,
Inc.(ö)
41,300
1,284
UDR,
Inc.(ö)
303,742
14,185
VEREIT,
Inc.(ö)
744,328
6,878
VICI
Properties,
Inc.(Ñ)(ö)
239,662
6,123
Weingarten
Realty
Investors(ö)
129,452
4,044
Welltower
,
Inc.(ö)
291,884
23,870
Weyerhaeuser
Co.(ö)
122,379
3,696
479,487
Total
Common
Stocks
(cost
$741,644)
907,451
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
139
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Short-Term
Investments
-
4.0%
United
States
-
4.0%
U.S.
Cash
Management
Fund(@)
37,820,286
(∞)
37,832
Total
Short-Term
Investments
(cost
$37,833)
37,832
Other
Securities
-
3.1%
U.S.
Cash
Collateral
Fund(×)(@)
29,944,201
(∞)
29,944
Total
Other
Securities
(cost
$29,944)
29,944
Total
Investments
102.5%
(identified
cost
$809,421)
975,227
Other
Assets
and
Liabilities,
Net
-
(2.5%)
(23,940)
Net
Assets
-
100.0%
951,287
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
140
Global
Real
Estate
Securities
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
0.9%
ADO
Properties
SA
07/23/15
EUR
2,522
21.12
53
91
Entra
ASA
08/04/15
NOK
216,882
10.97
2,380
3,584
ESR
Cayman,
Ltd.
11/12/19
HKD
987,400
2.17
2,138
2,230
Instone
Real
Estate
Group
AG
03/28/19
EUR
72,518
23.21
1,683
1,794
Tritax
EuroBox
PLC
07/04/18
GBP
953,426
1.16
1,109
1,199
8,898
For
a
description
of
restricted
securities
see
note
7
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
141
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
620
USD
22,785
03/20
530
FTSE/EPRA
Europe
Index
Futures
259
EUR
6,409
03/20
164
Hang
Seng
Index
Futures
14
HKD
19,789
01/20
24
MSCI
Singapore
Index
Futures
43
SGD
1,597
01/20
(1)
S&P/TSX
60
Index
Futures
9
CAD
1,822
03/20
2
SPI
200
Index
Futures
13
AUD
2,146
03/20
(42)
TOPIX
Index
Futures
32
JPY
550,72
0
03/20
—
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
677
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
74
EUR
66
01/02/20
—
Bank
of
Montreal
USD
395
AUD
575
03/18/20
10
Bank
of
Montreal
USD
377
CAD
499
03/18/20
7
Bank
of
Montreal
USD
1,913
EUR
1,713
03/18/20
17
Bank
of
Montreal
USD
847
HKD
6,621
03/18/20
3
Bank
of
Montreal
USD
1,492
JPY
161,126
03/18/20
(3)
Bank
of
Montreal
USD
375
SGD
509
03/18/20
4
Brown
Brothers
Harriman
USD
222
AUD
320
03/18/20
3
Brown
Brothers
Harriman
USD
304
CAD
400
03/18/20
4
Brown
Brothers
Harriman
USD
713
EUR
640
03/18/20
8
Brown
Brothers
Harriman
USD
367
HKD
2,860
03/18/20
—
Brown
Brothers
Harriman
USD
52
JPY
5,707
01/06/20
—
Brown
Brothers
Harriman
USD
14
JPY
1,506
01/07/20
—
Brown
Brothers
Harriman
USD
795
JPY
86,480
03/18/20
5
Brown
Brothers
Harriman
AUD
170
USD
117
03/18/20
(2)
Brown
Brothers
Harriman
EUR
440
USD
493
03/18/20
(3)
Brown
Brothers
Harriman
HKD
3,230
USD
415
01/03/20
—
Brown
Brothers
Harriman
HKD
2,650
USD
339
03/18/20
(1)
Brown
Brothers
Harriman
JPY
52,630
USD
488
03/18/20
2
Citigroup
USD
395
AUD
575
03/18/20
9
Citigroup
USD
378
CAD
499
03/18/20
6
Citigroup
USD
1,912
EUR
1,713
03/18/20
18
Citigroup
USD
847
HKD
6,621
03/18/20
2
Citigroup
USD
1,492
JPY
161,126
03/18/20
(3)
Citigroup
USD
375
SGD
509
03/18/20
4
Royal
Bank
of
Canada
USD
395
AUD
575
03/18/20
9
Royal
Bank
of
Canada
USD
377
CAD
499
03/18/20
7
Royal
Bank
of
Canada
USD
1,913
EUR
1,713
03/18/20
17
Royal
Bank
of
Canada
USD
847
HKD
6,621
03/18/20
3
Royal
Bank
of
Canada
USD
1,492
JPY
161,126
03/18/20
(3)
Royal
Bank
of
Canada
USD
375
SGD
509
03/18/20
4
Standard
Chartered
CAD
200
USD
151
03/18/20
(3)
State
Street
USD
15
EUR
13
01/03/20
—
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
124
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
142
Global
Real
Estate
Securities
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
Common
Stocks
Australia
$
—
$
31,096
$
—
$
—
$
31,096
3
.3
Austria
—
2,224
—
—
2,224
0
.2
Belgium
—
7,290
—
—
7,290
0
.8
Canada
27,744
—
—
—
27,744
2
.9
China
2,531
2,663
—
—
5,194
0
.5
France
—
19,382
—
—
19,382
2
.0
Germany
—
39,397
—
—
39,397
4
.1
Hong
Kong
2,230
49,689
—
—
51,919
5
.5
Japan
—
107,979
—
—
107,979
11
.4
Netherlands
11,522
2,342
—
—
13,864
1
.5
Norway
—
3,584
—
—
3,584
0
.4
Singapore
—
30,153
—
—
30,153
3
.2
Spain
—
9,680
—
—
9,680
1
.0
Sweden
—
20,247
—
—
20,247
2
.1
Switzerland
—
6,052
—
—
6,052
0
.6
United
Kingdom
—
52,159
—
—
52,159
5
.5
United
States
479,487
—
—
—
479,487
50
.4
Short-Term
Investments
—
—
—
37,832
37,832
4
.0
Other
Securities
—
—
—
29,944
29,944
3
.1
Total
Investments
523,514
383,937
—
67,776
975,227
102
.5
Other
Assets
and
Liabilities,
Net
(2
.5)
100
.0
Other
Financial
Instruments
Assets
Futures
Contracts
720
—
—
—
720
0
.1
Foreign
Currency
Exchange
Contracts
1
141
—
—
142
—
*
A
Liabilities
Futures
Contracts
(43
)
—
—
—
(43
)
(—)
*
Foreign
Currency
Exchange
Contracts
—
(18
)
—
—
(18
)
(—)
*
Total
Other
Financial
Instruments
**
$
678
$
123
$
—
$
—
$
801
*
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.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
143
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
December
31,
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
December
31,
2019,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Property
Sector
Exposure
Fair
Value
$
Diversified
..............................................................................
305,789
Healthcare
..............................................................................
67,551
Industrial
................................................................................
95,441
Lodging/Resorts
......................................................................
23,788
Office
......................................................................................
105,163
Residential
..............................................................................
167,958
Retail
......................................................................................
106,562
Self
Storage
.............................................................................
35,199
Short-Term
Investments
..........................................................
37,832
Other
Securities
......................................................................
29,944
Total
Investments
....................................................................
975,227
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
144
Global
Real
Estate
Securities
Fund
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2019
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
$
—
$
142
Variation
margin
on
futures
contracts*
720
—
Total
$
720
$
142
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
43
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
18
Total
$
43
$
18
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
3,826
$
—
Foreign
currency
exchange
contracts
—
(287)
Total
$
3,826
$
(287)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
1,610
$
—
Foreign
currency
exchange
contracts
—
97
Total
$
1,610
$
97
*
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
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
145
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
$
28,629
$
—
$
28,629
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
142
—
142
Total
Financial
and
Derivative
Assets
28,771
—
28,771
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(1)
—
(1)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
28,770
$
—
$
28,770
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
$
41
$
3
$
—
$
38
Brown
Brothers
Harriman
21
6
—
15
Citigroup
2,449
3
2,410
36
JPMorgan
Chase
3,199
—
3,199
—
Merrill
Lynch
19,600
—
19,600
—
Morgan
Stanley
3,420
—
3,420
—
Royal
Bank
of
Canada
40
3
—
37
Total
$
28,770
$
15
$
28,629
$
126
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
146
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
$
18
$
—
$
18
Total
Financial
and
Derivative
Liabilities
18
—
18
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
18
$
—
$
18
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
$
—
$
—
Brown
Brothers
Harriman
6
6
—
—
Citigroup
3
3
—
—
Royal
Bank
of
Canada
3
3
—
—
Standard
Chartered
3
—
—
3
Total
$
18
$
15
$
—
$
3
*
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
147
Statement
of
Assets
and
Liabilities
—
December
31,
2019
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
809,421
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
975,227
Foreign
currency
holdings(^)
.........................................................................................................................................................
1,996
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
142
Receivables:
Dividends
and
interest
.......................................................................................................................................................
3,103
Dividends
from
affiliated
funds
..........................................................................................................................................
54
Investments
sold
................................................................................................................................................................
9,361
Fund
shares
sold
................................................................................................................................................................
77
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
149
From
broker(a)
...................................................................................................................................................................
1,273
Variation
margin
on
futures
contracts
.................................................................................................................................
680
Total
assets
.................................................................................................................................................
992,062
Liabilities
Payables:
Due
to
custodian
................................................................................................................................................................
4
Investments
purchased
......................................................................................................................................................
9,965
Fund
shares
redeemed
.......................................................................................................................................................
11
Accrued
fees
to
affiliates
....................................................................................................................................................
683
Other
accrued
expenses
.....................................................................................................................................................
150
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
18
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
29,944
Total
liabilities
.............................................................................................................................................
40,775
Net
Assets
............................................................................................................................................................
$
951,287
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
148
Global
Real
Estate
Securities
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2019
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
122,690
Shares
of
beneficial
interest
...........................................................................................................................................................
618
Additional
paid-in
capital
..............................................................................................................................................................
827,979
Net
Assets
............................................................................................................................................................
$
951,287
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
15.40
Net
assets
...............................................................................................................................................................................
$
951,287,321
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
61,777,634
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
1,978
(*)
Securities
on
loan
included
in
investments
$
28,629
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
67,776
(a)
Receivable
from
Broker
for
Futures
$
1,273
(#)
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
149
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2019
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
24,794
Dividends
from
affiliated
funds
.........................................................................................................................................
53
0
Securities
lending
income
(net)
.........................................................................................................................................
127
Less
foreign
taxes
withheld
...............................................................................................................................................
(1,236)
Total
investment
income
...............................................................................................................................................................
24,21
5
Expenses
Advisory
fees
....................................................................................................................................................................
7,348
Administrative
fees
...........................................................................................................................................................
459
Custodian
fees
...................................................................................................................................................................
284
Transfer
agent
fees
............................................................................................................................................................
39
Professional
fees
...............................................................................................................................................................
125
Trustees’
fees
....................................................................................................................................................................
39
Printing
fees
......................................................................................................................................................................
119
Miscellaneous
...................................................................................................................................................................
30
Total
expenses
...............................................................................................................................................................................
8,443
Net
investment
income
(loss)
........................................................................................................................................................
15,77
2
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
12,183
Investments
in
affiliated
funds
..........................................................................................................................................
5
Futures
contracts
..............................................................................................................................................................
3,826
Foreign
currency
exchange
contracts
................................................................................................................................
(287)
Foreign
currency-related
transactions
...............................................................................................................................
18
Net
realized
gain
(loss)
..................................................................................................................................................................
15,745
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
141,855
Investments
in
affiliated
funds
..........................................................................................................................................
(1)
Futures
contracts
..............................................................................................................................................................
1,610
Foreign
currency
exchange
contracts
................................................................................................................................
97
Foreign
currency-related
transactions
...............................................................................................................................
46
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
143,607
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
159,352
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
175,12
4
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
150
Global
Real
Estate
Securities
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2019
2018
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
15,772
$
26,548
Net
realized
gain
(loss)
......................................................................................................................
15,745
13,800
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
143,607
(90,795)
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
175,124
(50,447)
Distributions
To
shareholders
.................................................................................................................................
(46,690
)
(40,384)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(46,690
)
(40,384)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
379
13,851
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
128,813
(76,980)
Net
Assets
Beginning
of
period
.................................................................................................................................
822,474
899,454
End
of
period
..........................................................................................................................................
$
951,287
$
822,474
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2019
and
December
31,
2018
were
as
follows:
2019
2018
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
1,024
$
15,65
3
1,49
4
$
21,338
Proceeds
from
reinvestment
of
distributions
3,076
46,690
2,900
40,384
Payments
for
shares
redeemed
(4,086)
(61,964)
(3,345)
(47,871)
Total
increase
(decrease)
14
$
37
9
1,0
49
$
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.
152
Global
Real
Estate
Securities
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
December
31,
2019
13.32
.26
2.60
2.86
(.78)
—
—
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)
—
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
153
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.78)
15.40
21.64
951,287
.92
.92
1.72
81
(.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
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
154
Global
Real
Estate
Securities
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2019
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2019
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2019
and
December
31,
2018
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2019,
Assets
and
Liabilities
have
been
adjusted
by
the
following
amount
(in
thousands):
Advisory
fees
$
635,164
Administration
fees
39,698
Transfer
agent
fees
3,494
Trustee
fees
4,589
$
682,945
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
$
232,910
$
213,251
$
5
$
(1
)
$
37,832
$
530
$
—
U.S.
Cash
Collateral
Fund
2,813
146,702
119,571
—
—
29,944
419
—
$
20,982
$
379,612
$
332,822
$
5
$
(1
)
$
67,776
$
949
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
849,652,379
$
128,917,279
$
(3,424,290)
$
125,492,989
$
—
$
(1,118,050)
December
31,
2019
December
31,
2018
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
46,690,134
$
—
$
—
$
39,290,345
$
1,093,348
$
—
Total
distributable
earnings
(losses)
$
2,191
Additional
paid-in
capital
(2,191)
Russell
Investment
Funds
Notes
to
Schedule
of
Investments
—
December
31,
2019
Notes
to
Schedule
of
Investments
155
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,
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.
(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.
(@)
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.
(
Û
)
All
or
a
portion
of
the
shares
of
this
security
are
pledged
as
collateral
in
connection
with
securities
sold
short
.
(
Ð
)
All
or
a
portion
of
the
shares
of
this
security
are
on
loan
through
the
reciprocal
lending
program
with
State
Street.
See
note
2
in
the
Notes
to
the
Financial
Statements
.
(1)
Weekly
payment
frequency.
(2)
Quarterly
payment
frequency.
(3)
Semi-annual
payment
frequency.
(4)
Annual
payment
frequency.
(5)
Payment
at
termination.
ADR
-
American
Depositary
Receipt
ADS
-
American
Depositary
Share
BBR
-
Bank
Bill
Rate
BBSW
-
Bank
Bill
Swap
Reference
Rate
BUBOR
–
Budapest
Interbank
Offered
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
GSCI
–
Goldman
Sachs
Commodity
Index
HIBOR
–
Hong
Kong
Interbank
Offer
Rate
Russell
Investment
Funds
Notes
to
Schedule
of
Investments,
continued
—
December
31,
2019
156
Notes
to
Schedule
of
Investments
Foreign
Currency
Abbreviations:
JIBAR
–
Johannesburg
Interbank
Agreed
Rate
KSDA
–
Korean
Securities
Dealers
Association
LIBOR
-
London
Interbank
Offered
Rate
MIBOR
-
Mumbai
Interbank
Offered
Rate
NIBOR
-
Norwegian
Interbank
Offered
Rate
PIK
-
Payment
in
Kind
PRIBOR
–
Prague
Interbank
Offered
Rate
REMIC
-
Real
Estate
Mortgage
Investment
Conduit
STIBOR
–
Stockholm
Interbank
Offered
Rate
STRIP
-
Separate
Trading
of
Registered
Interest
and
Principal
of
Securities
SFE
-
Sydney
Futures
Exchange
TBA
-
To
Be
Announced
Security
UK
-
United
Kingdom
WTI
–
West
Texas
Intermediate
ARS
-
Argentine
peso
HKD
-
Hong
Kong
dollar
PKR
-
Pakistani
rupee
AUD
-
Australian
dollar
HUF
-
Hungarian
forint
PLN
-
Polish
zloty
BRL
-
Brazilian
real
IDR
-
Indonesian
rupiah
RON
–
Romanian
New
Leu
CAD
-
Canadian
dollar
ILS
-
Israeli
shekel
RUB
-
Russian
ruble
CHF
-
Swiss
franc
INR
-
Indian
rupee
SEK
-
Swedish
krona
CLP
-
Chilean
peso
ISK
-
Icelandic
krona
SGD
-
Singapore
dollar
CNH
–
Chinese
offshore
spot
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
UYU
–
Uruguayan
peso
DOP
-
Dominican
peso
NOK
-
Norwegian
krone
VEB
-
Venezuelan
bolivar
EGP
-
Egyptian
pound
NGN
–
Nigerian
naira
VND
-
Vietnamese
dong
EUR
-
Euro
NZD
-
New
Zealand
dollar
ZAR
-
South
African
rand
GBP
-
British
pound
sterling
PEN
-
Peruvian
nuevo
sol
GHS
–
Ghanaian
Cedi
PHP
-
Philippine
peso
Russell
Investment
Funds
Notes
to
Financial
Highlights
—
December
31,
2019
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Notes
to
Financial
Highlights
157
(a)
Average
daily
shares
outstanding
were
used
for
this
calculation.
(b)
May
reflect
amounts
waived
and/or
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(c)
Less
than
$.01
per
share.
(d)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
(e)
Gross
and
Net
Expense
Ratios
for
the
period
ended
December
31,
2016
include
a
reimbursement
from
State
Street
for
the
overbilling
of
custody
expenses
in
prior
years.
Without
the
reimbursement,
the
expense
ratios
would
have
been
higher
by
the
amount
listed
below.
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
—
December
31,
2019
158
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
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
has
evaluated
the
impact
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
financial
statements.
In
March
2017,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2017-08,
Receivables
-
Nonrefundable
Fees
and
Other
Costs
(Subtopic
310-20)
-
Premium
Amortization
on
Purchased
Callable
Debt
Securities.
The
amendments
in
this
update
shorten
the
amortization
period
for
certain
callable
debt
securities
held
at
a
premium.
Management
has
adopted
the
ASU
and
there
was
no
material
impact
to
the
financial
statements.
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
159
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:
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
160
Notes
to
Financial
Statements
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.
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
December
31,
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
$68,895.
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
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
161
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.
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
—
December
31,
2019
162
Notes
to
Financial
Statements
realized
upon
ultimate
settlement
with
the
relevant
taxing
authority.
Management
determined
that
no
accruals
need
to
be
made
in
the
financial
statements
due
to
uncertain
tax
positions.
Management
continually
reviews
and
adjusts
the
Funds’
liability
for
income
taxes
based
on
analyses
of
tax
laws
and
regulations,
as
well
as
their
interpretations,
and
other
relevant
factors.
Each
Fund
files
a
U.S.
tax
return.
At
December
31,
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
—
December
31,
2019
Notes
to
Financial
Statements
163
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
and
Global
Real
Estate
Securities
Funds
may
record
a
deferred
capital
gains
tax
liability
with
respect
to
the
unrealized
appreciation
on
foreign
securities
for
potential
capital
gains
and
repatriation
taxes
at
December
31,
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
Statement
of
Assets
and
Liabilities
as
Receivables
for
Variation
margin
on
future
contracts
and
Payables
for
Variation
margin
on
futures
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
$
5,779
$
1,194
Strategic
Bond
Fund
11,792
—
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
164
Notes
to
Financial
Statements
The
effects
of
derivative
instruments,
categorized
by
risk
exposure,
on
the
Statement
of
Assets
and
Liabilities
and
the
Statement
of
Operations,
for
the
period
ended
December
31,
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
December
31,
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
September
30,
2019
December
31,
2019
International
Developed
Markets
Fund
$
166,952,447
$
108,530,104
$
68,435,457
$
68,753,406
Strategic
Bond
Fund
276,761,776
346,905,191
406,773,970
303,162,633
Global
Real
Estate
Securities
Fund
13,077,807
9,690,876
29,934,621
20,756,946
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2019
June
30,
2019
September
30,
2019
December
31,
2019
International
Developed
Markets
Fund
$
166,988,286
$
108,684,111
$
67,845,339
$
69,080,121
Strategic
Bond
Fund
281,153,505
338,223,071
407,769,462
302,932,646
Global
Real
Estate
Securities
Fund
13,018,690
9,698,703
29,658,735
20,831,583
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
165
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
December
31,
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
December
31,
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
Notional
of
Options
Contracts
Outstanding
Funds
March
31,
2019
June
30,
2019
September
30,
2019
December
31,
2019
Strategic
Bond
Fund
$
16,412,750
$
58,192,750
$
47,490,500
$
26,562,750
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
September
30,
2019
December
31,
2019
U.S.
Strategic
Equity
Fund
$
6,243,160
$
7,066,080
$
1,936,025
$
8,885,525
U.S.
Small
Cap
Equity
Fund
2,006,940
7,600,435
5,185,000
8,102,410
International
Developed
Markets
Fund
118,377,117
112,050,501
109,639,209
114,067,224
Strategic
Bond
Fund
584,543,689
679,752,543
775,144,815
884,234,682
Global
Real
Estate
Securities
Fund
21,319,343
18,589,439
47,941,057
41,679,030
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
166
Notes
to
Financial
Statements
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
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
167
or
loss
events
on
the
underlying
mortgage
loans
will
reduce
the
outstanding
principal
balance
of
the
referenced
obligation.
These
reductions
may
be
temporary
or
permanent
as
defined
under
the
terms
of
the
swap
agreement
and
the
notional
amount
for
the
swap
agreement
generally
will
be
adjusted
by
corresponding
amounts.
The
Strategic
Bond
Fund
may
use
credit
default
swaps
on
asset-
backed
securities
to
provide
a
measure
of
protection
against
defaults
(or
other
defined
credit
events)
of
the
referenced
obligation
or
to
take
an
active
long
or
short
position
with
respect
to
the
likelihood
of
a
particular
referenced
obligation’s
default
(or
another
defined
credit
event).
Credit
default
swap
agreements
on
credit
indices
involve
one
party
making
a
stream
of
payments
to
another
party
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
write-down,
principal
shortfall,
interest
shortfall
or
default
of
all
or
part
of
the
referenced
entities
comprising
the
credit
index.
A
credit
index
is
a
basket
of
credit
instruments
or
exposures
designed
to
be
representative
of
some
part
of
the
credit
market
as
a
whole.
These
indices
are
made
up
of
reference
credits
that
are
judged
by
a
poll
of
dealers
to
be
the
most
liquid
entities
in
the
credit
default
swap
market
based
on
the
sector
of
the
index.
Components
of
the
indices
may
include,
but
are
not
limited
to,
investment
grade
securities,
high
yield
securities,
asset-backed
securities,
emerging
markets,
and/or
various
credit
ratings
within
each
sector.
Credit
indices
are
traded
using
credit
default
swaps
with
standardized
terms
including
a
fixed
spread
and
standard
maturity
dates.
An
index
credit
default
swap
references
all
the
names
in
the
index,
and
if
there
is
a
default,
the
credit
event
is
settled
based
on
that
name’s
weight
in
the
index.
The
composition
of
the
indices
changes
periodically,
usually
every
six
months,
and,
for
most
indices,
each
name
has
an
equal
weight
in
the
index.
Traders
may
use
credit
default
swaps
on
indices
to
speculate
on
changes
in
credit
quality.
Implied
credit
spreads,
represented
in
absolute
terms,
utilized
in
determining
the
fair
value
of
credit
default
swap
agreements
on
corporate
issues
as
of
period-end
are
disclosed
in
the
Schedules
of
Investments
and
generally
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
(or
other
defined
credit
event)
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
entering
into
a
credit
default
swap
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
For
credit
default
swap
agreements
on
asset-
backed
securities
and
credit
indices,
the
quoted
market
prices
and
resulting
values
serve
as
the
indicator
of
the
current
status
of
the
payment/performance
risk.
Wider
credit
spreads
and
increasing
fair
values,
in
absolute
terms
when
compared
to
the
notional
amount
of
the
swap,
generally
represent
a
deterioration
of
the
referenced
entity’s
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
the
Fund
as
a
seller
of
protection
could
be
required
to
make
under
a
credit
default
swap
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
all
credit
default
swap
agreements
outstanding
as
of
December
31,
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
December
31,
2019,
the
Strategic
Bond
Fund
entered
into
credit
default
swaps
primarily
for
return
enhancement,
hedging
and
exposing
cash
to
markets.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
168
Notes
to
Financial
Statements
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.
Interest
Rate
Swaps
The
use
of
interest
rate
swaps
is
a
highly
specialized
activity
which
involves
investment
techniques
and
risks
different
from
those
associated
with
ordinary
portfolio
securities
transactions.
If
RIM
or
a
money
manager
using
this
technique
is
incorrect
in
its
forecast
of
fair
values,
interest
rates
and
other
applicable
factors,
the
investment
performance
of
a
Fund
might
diminish
compared
to
what
it
would
have
been
if
this
investment
technique
were
not
used.
Interest
rate
swaps
do
not
involve
the
delivery
of
securities
or
other
underlying
assets
or
principal.
Accordingly,
the
risk
of
loss
with
respect
to
interest
rate
swaps
is
limited
to
the
net
amount
of
interest
payments
that
a
Fund
is
contractually
obligated
to
make.
Interest
rate
swaps
are
traded
on
exchanges
and
are
subject
to
central
clearing.
If
the
clearing
house
or
futures
commission
merchant
defaults,
a
Funds'
risk
of
loss
consists
of
the
net
amount
of
interest
payments
that
a
Fund
is
contractually
entitled
to
receive.
The
counterparty
risk
for
cleared
derivatives
is
generally
lower
than
for
uncleared
derivatives.
However,
clearing
may
subject
a
Fund
to
increased
costs
or
margin
requirements.
For
the
period
ended
December
31,
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
in
USD
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
December
31,
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
December
31,
2019,
there
were
no
currency
swaps
held
in
the
Funds.
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
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2019
June
30,
2019
September
30,
2019
December
31,
2019
Strategic
Bond
Fund
$
36,699,702
$
36,190,000
$
18,034,200
$
24,575,200
Interest
Rate
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2019
June
30,
2019
September
30,
2019
December
31,
2019
Strategic
Bond
Fund
$
60,993,824
$
81,003,255
$
89,927,991
$
100,754,192
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
169
agreements
with
a
single
counterparty.
As
the
ISDA
Master
Agreements
are
specific
to
unique
operations
of
different
asset
types,
they
allow
a
Fund
to
net
its
total
exposure
to
a
counterparty
in
the
event
of
a
default
with
respect
to
all
the
transactions
governed
under
a
single
agreement
with
a
counterparty.
Master
Repurchase
Agreements
(“Master
Repo
Agreements”)
govern
transactions
between
a
Fund
and
select
counterparties.
The
Master
Repo
Agreements
maintain
provisions
for,
among
other
things,
initiation,
income
payments,
events
of
default,
and
maintenance
of
collateral
for
repurchase
and
reverse
repurchase
agreements.
Master
Securities
Forward
Transaction
Agreements
(“Master
Forward
Agreements”)
govern
the
considerations
and
factors
surrounding
the
settlement
of
certain
forward
settling
transactions,
such
as
delayed
delivery
by
and
between
a
Fund
and
select
counterparties.
The
Master
Forward
Agreements
maintain
provisions
for,
among
other
things,
initiation
and
confirmation,
payment
and
transfer,
events
of
default,
termination,
and
maintenance
of
collateral.
Disclosure
about
Offsetting
Assets
and
Liabilities
Balance
sheet
disclosure
is
based
on
various
netting
agreements
between
brokers
and
counterparties,
such
as
ISDA
Master
Agreements,
Master
Repo
Agreements
and
Master
Forward
Agreements.
Certain
Funds
utilize
multiple
counterparties.
The
quantitative
disclosure
begins
with
disaggregation
of
counterparties
by
legal
entity
and
the
roll
up
of
the
data
to
reflect
a
single
counterparty
in
the
table
within
the
Funds’
financial
statements.
Net
exposure
represents
the
net
receivable
(payable)
that
would
be
due
from/to
the
counterparty
in
the
event
of
default.
Exposure
from
OTC
derivatives
can
only
be
netted
across
transactions
governed
under
the
same
Master
Agreement
with
the
same
legal
entity.
Loan
Agreements
The
Strategic
Bond
Fund
may
invest
in
direct
debt
instruments
which
are
interests
in
amounts
owed
by
corporate,
governmental,
or
other
borrowers
to
lenders
or
lending
syndicates.
The
Fund’s
investments
in
loans
may
be
in
the
form
of
participations
in
loans
or
assignments
of
all
or
a
portion
of
loans
from
third
parties.
A
loan
is
often
administered
by
a
bank
or
other
financial
institution
(the
“agent”)
that
acts
as
agent
for
all
holders.
The
agent
administers
the
terms
of
the
loan,
as
specified
in
the
loan
agreement.
When
investing
in
a
loan
participation,
the
Fund
has
the
right
to
receive
payments
of
principal,
interest
and
any
fees
to
which
it
is
entitled
only
from
the
agent
selling
the
loan
agreement
and
only
upon
receipt
by
the
agent
of
payments
from
the
borrower.
The
Fund
generally
has
no
right
to
enforce
compliance
with
the
terms
of
the
loan
agreement
with
the
borrower.
As
a
result,
the
Fund
may
be
subject
to
the
credit
risk
of
both
the
borrower
and
the
agent
that
is
selling
the
loan
agreement.
When
the
Fund
purchases
assignments
from
agents
it
acquires
direct
rights
against
the
borrower
on
the
loan.
The
total
amount
of
unfunded
loan
commitments
as
of
December
31,
2019
was
$19,710.
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.
Credit
Linked
Notes
Certain
Funds
may
invest
in
credit
linked
notes.
Credit
linked
notes
are
obligations
between
two
or
more
parties
where
the
payment
of
principal
and/or
interest
is
based
on
the
performance
of
some
obligation,
basket
of
obligations,
index
or
economic
indicator
(a
“reference
instrument”).
In
addition
to
the
credit
risk
associated
with
the
reference
instrument
and
interest
rate
risk,
the
buyer
and
seller
of
a
credit
linked
note
or
similar
structured
investment
are
subject
to
counterparty
risk.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
170
Notes
to
Financial
Statements
Short
Sales
The
U.S.
Small
Cap
Equity
Fund
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
Fund
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
Fund
must
return
the
borrowed
security.
The
Fund
will
realize
a
gain
if
the
security
declines
in
price
between
those
dates.
Short
sales
expose
the
Fund
to
the
risk
of
liability
for
the
fair
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
Fund's
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
Fund
makes
a
short
sale,
the
Fund
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
Fund
is
required
to
pledge
assets
in
a
segregated
account
maintained
by
the
Fund's
custodian
for
the
benefit
of
the
broker.
The
Fund
also
may
use
securities
they
own
to
meet
any
such
collateral
obligations.
Until
the
Fund
replaces
a
borrowed
security
in
connection
with
a
short
sale,
the
Fund
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).
The
U.S.
Small
Cap
Fund
may
participate
in
a
reciprocal
lending
program
with
State
Street
through
which
the
Fund
is
permitted
to
use
cash
collateral
received
in
connection
with
certain
security
lending
activities
to
finance
the
Fund’s
short
selling
activity.
Such
arrangements
subject
the
Fund
to
the
risk
that
the
counterparty
holding
the
cash
collateral
may
fail
to
return
it
promptly.
This
risk
may
be
heightened
during
periods
of
market
stress
and
volatility,
particularly
if
the
type
of
collateral
provided
is
different
than
the
type
of
security
borrowed
(e.g.,
cash
is
provided
as
collateral
for
a
loan
of
an
equity
security).
As
of
December
31,
2019,
the
market
value
of
the
securities
on
loan
through
the
reciprocal
lending
program
for
U.S.
Small
Cap
Equity
Fund
was
$9,061,091.
As
of
December
31,
2019,
the
U.S.
Small
Cap
Equity
Fund
held
$12,150,947
as
collateral
for
short
sales.
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
December
31,
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.
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,
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
171
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.
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
172
Notes
to
Financial
Statements
MBS
may
have
less
potential
for
capital
appreciation
than
comparable
fixed
income
securities
due
to
the
likelihood
of
increased
prepayments
of
mortgages
resulting
from
foreclosures
or
declining
interest
rates.
These
foreclosed
or
refinanced
mortgages
are
paid
off
at
face
value
(par)
or
less,
causing
a
loss,
particularly
for
any
investor
who
may
have
purchased
the
security
at
a
premium
or
a
price
above
par.
In
such
an
environment,
this
risk
limits
the
potential
price
appreciation
of
these
securities.
Agency
Mortgage-Backed
Securities
Certain
MBS
may
be
issued
or
guaranteed
by
the
U.S.
government
or
a
government
sponsored
entity,
such
as
Fannie
Mae
(the
Federal
National
Mortgage
Association)
or
Freddie
Mac
(the
Federal
Home
Loan
Mortgage
Corporation).
Although
these
instruments
may
be
guaranteed
by
the
U.S.
government
or
a
government
sponsored
entity,
many
such
MBS
are
not
backed
by
the
full
faith
and
credit
of
the
United
States
and
are
still
exposed
to
the
risk
of
non-payment.
Privately
Issued
Mortgage-Backed
Securities
MBS
held
by
a
Fund
may
be
issued
by
private
issuers
including
commercial
banks,
savings
associations,
mortgage
companies,
investment
banking
firms,
finance
companies
and
special
purpose
finance
entities
(called
special
purpose
vehicles
or
SPVs)
and
other
entities
that
acquire
and
package
mortgage
loans
for
resale
as
MBS.
These
privately
issued
non-agency
MBS
may
offer
higher
yields
than
those
issued
by
government
agencies,
but
also
may
be
subject
to
greater
price
changes
than
governmental
issues.
Subprime
loans
refer
to
loans
made
to
borrowers
with
weakened
credit
histories
or
with
a
lower
capacity
to
make
timely
payments
on
their
loans.
Alt-A
loans
refer
to
loans
extended
to
borrowers
who
have
incomplete
documentation
of
income,
assets,
or
other
variables
that
are
important
to
the
credit
underwriting
processes.
Non-conforming
mortgages
are
loans
that
do
not
meet
the
standards
that
allow
purchase
by
government-sponsored
enterprises.
MBS
with
exposure
to
subprime
loans,
Alt-A
loans
or
nonconforming
loans
have
had
in
many
cases
higher
default
rates
than
those
loans
that
meet
government
underwriting
requirements.
The
risk
of
non-payment
is
greater
for
MBS
that
are
backed
by
mortgage
pools
that
contain
subprime,
Alt-A
and
non-conforming
loans,
but
a
level
of
risk
exists
for
all
loans.
Unlike
agency
MBS
issued
or
guaranteed
by
the
U.S.
government
or
a
government-sponsored
entity
(e.g.,
Fannie
Mae
and
Freddie
Mac),
MBS
issued
by
private
issuers
do
not
have
a
government
or
government-sponsored
entity
guarantee,
but
may
have
credit
enhancements
provided
by
external
entities
such
as
banks
or
financial
institutions
or
achieved
through
the
structuring
of
the
transaction
itself.
Examples
of
such
credit
support
arising
out
of
the
structure
of
the
transaction
include
the
issue
of
senior
and
subordinated
securities
(e.g.,
the
issuance
of
securities
by
an
SPV
in
multiple
classes
or
tranches,
with
one
or
more
classes
being
senior
to
other
subordinated
classes
as
to
the
payment
of
principal
and
interest,
with
the
result
that
defaults
on
the
underlying
mortgage
loans
are
borne
first
by
the
holders
of
the
subordinated
class);
creation
of
reserve
funds
(in
which
case
cash
or
investments,
sometimes
funded
from
a
portion
of
the
payments
on
the
underlying
mortgage
loans,
are
held
in
reserve
against
future
losses);
and
overcollateralization
(in
which
case
the
scheduled
payments
on,
or
the
principal
amount
of,
the
underlying
mortgage
loans
exceeds
that
required
to
make
payment
on
the
securities
and
pay
any
servicing
or
other
fees).
However,
there
can
be
no
guarantee
that
credit
enhancements,
if
any,
will
be
sufficient
to
prevent
losses
in
the
event
of
defaults
on
the
underlying
mortgage
loans.
In
addition,
MBS
that
are
issued
by
private
issuers
are
not
subject
to
the
underwriting
requirements
for
the
underlying
mortgages
that
are
applicable
to
those
MBS
that
have
a
government
or
government-sponsored
entity
guarantee.
As
a
result,
the
mortgage
loans
underlying
private
MBS
may,
and
frequently
do,
have
less
favorable
collateral,
credit
risk
or
other
underwriting
characteristics
than
government
or
government-sponsored
MBS
and
have
wider
variances
in
a
number
of
terms
including
interest
rate,
term,
size,
purpose
and
borrower
characteristics.
Privately
issued
pools
more
frequently
include
second
mortgages,
high
loan-to-value
mortgages
and
manufactured
housing
loans.
The
coupon
rates
and
maturities
of
the
underlying
mortgage
loans
in
a
private-label
MBS
pool
may
vary
to
a
greater
extent
than
those
included
in
a
government
guaranteed
pool,
and
the
pool
may
include
subprime
mortgage
loans.
Privately
issued
MBS
are
not
traded
on
an
exchange
and
there
may
be
a
limited
market
for
the
securities,
especially
when
there
is
a
perceived
weakness
in
the
mortgage
and
real
estate
market
sectors.
Without
an
active
trading
market,
MBS
held
in
a
Fund's
portfolio
may
be
particularly
difficult
to
value
because
of
the
complexities
involved
in
assessing
the
value
of
the
underlying
mortgage
loans.
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
173
Payment
of
principal
and
interest
may
be
largely
dependent
upon
the
cash
flows
generated
by
the
assets
backing
the
securities.
Rising
or
high
interest
rates
tend
to
extend
the
duration
of
ABS,
making
them
more
volatile
and
more
sensitive
to
changes
in
interest
rates.
The
underlying
assets
are
sometimes
subject
to
prepayments
which
can
shorten
the
security’s
weighted
average
life
and
may
lower
its
return.
Defaults
on
loans
underlying
ABS
have
become
an
increasing
risk
for
ABS
that
are
secured
by
home
equity
loans
related
to
sub-prime,
Alt-A
or
non-conforming
mortgage
loans,
especially
in
a
declining
residential
real
estate
market.
ABS
(other
than
MBS)
present
certain
risks
that
are
not
presented
by
MBS.
Primarily,
these
securities
may
not
have
the
benefit
of
any
security
interest
in
the
related
assets.
Credit
card
receivables
are
generally
unsecured
and
the
debtors
are
entitled
to
the
protection
of
a
number
of
state
and
federal
consumer
credit
laws,
many
of
which
give
such
debtors
the
right
to
set
off
certain
amounts
owed
on
the
credit
cards,
thereby
reducing
the
balance
due.
There
is
the
possibility
that
recoveries
on
repossessed
collateral
may
not,
in
some
cases,
be
available
to
support
payments
on
these
securities.
ABS
are
often
backed
by
a
pool
of
assets
representing
the
obligations
of
a
number
of
different
parties.
To
lessen
the
effect
of
failures
by
obligors
on
underlying
assets
to
make
payments,
the
securities
may
contain
elements
of
credit
support
which
fall
into
two
categories:
(i)
liquidity
protection,
and
(ii)
protection
against
losses
resulting
from
ultimate
default
by
an
obligor
on
the
underlying
assets.
Liquidity
protection
refers
to
the
provision
of
advances,
generally
by
the
entity
administering
the
pool
of
assets,
to
ensure
that
the
receipt
of
payments
on
the
underlying
pool
occurs
in
a
timely
fashion.
Protection
against
losses
results
from
payment
of
the
insurance
obligations
on
at
least
a
portion
of
the
assets
in
the
pool.
This
protection
may
be
provided
through
guarantees,
policies
or
letters
of
credit
obtained
by
the
issuer
or
sponsor
from
third
parties,
through
various
means
of
structuring
the
transaction
or
through
a
combination
of
such
approaches.
The
Fund
will
not
pay
any
additional
or
separate
fees
for
credit
support.
The
degree
of
credit
support
provided
for
each
issue
is
generally
based
on
historical
information
respecting
the
level
of
credit
risk
associated
with
the
underlying
assets.
Delinquency
or
loss
in
excess
of
that
anticipated
or
failure
of
the
credit
support
could
adversely
affect
the
return
on
an
investment
in
such
a
security.
The
availability
of
ABS
may
be
affected
by
legislative
or
regulatory
developments.
It
is
possible
that
such
developments
may
require
the
Funds
to
dispose
of
any
then-existing
holdings
of
such
securities.
Forward
Commitments
The
Strategic
Bond
Fund
may
contract
to
purchase
securities
for
a
fixed
price
at
a
future
date
beyond
customary
settlement
time.
The
price
of
the
underlying
securities
and
the
date
when
the
securities
will
be
delivered
and
paid
for
are
fixed
at
the
time
the
transaction
is
negotiated.
The
Fund
may
dispose
of
a
forward
commitment
transaction
prior
to
settlement
if
it
is
appropriate
to
do
so
and
may
realize
short-term
gains
(or
losses)
upon
such
sale.
When
effecting
such
transactions,
cash
or
liquid
high-grade
debt
obligations
of
the
Fund
in
a
dollar
amount
sufficient
to
make
payment
for
the
portfolio
securities
to
be
purchased
will
be
earmarked
on
the
Fund’s
records
at
the
trade
date
and
until
the
transaction
is
settled.
A
forward
commitment
transaction
involves
a
risk
of
loss
if
the
value
of
the
security
to
be
purchased
declines
prior
to
the
settlement
date
or
the
other
party
to
the
transaction
fails
to
complete
the
transaction.
The
Strategic
Bond
Fund
may
invest
in
to-be-announced
("TBA")
mortgage-backed
securities.
A
TBA
security
is
a
forward
mortgage-backed
securities
trade
in
which
a
seller
agrees
to
issue
a
TBA
mortgage-backed
security
at
a
future
date.
The
securities
are
purchased
and
sold
on
a
forward
commitment
basis
with
an
approximate
principal
amount
and
maturity
date.
The
actual
principal
amount
and
maturity
date
will
be
determined
upon
settlement
when
the
specific
mortgage
pools
are
assigned.
These
securities
are
within
the
parameters
of
industry
“good
delivery”
standards.
As
of
December
31,
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
174
Notes
to
Financial
Statements
LIBOR
The
Funds
may
invest
in
certain
instruments
including,
but
not
limited
to,
repurchase
agreements,
collateralized
loan
obligations
and
mortgage-backed
securities,
that
rely
in
some
fashion
upon
LIBOR.
LIBOR
is
an
average
interest
rate,
determined
by
the
ICE
Benchmark
Administration,
that
banks
charge
one
another
for
the
use
of
short-term
money.
The
United
Kingdom’s
Financial
Conduct
Authority,
which
regulates
LIBOR,
has
announced
plans
to
phase
out
the
use
of
LIBOR
by
the
end
of
2021.
There
remains
uncertainty
regarding
the
future
utilization
of
LIBOR
and
the
nature
of
any
replacement
rate
(e.g.,
the
Secured
Overnight
Financing
Rate,
which
is
intended
to
replace
U.S.
dollar
LIBOR
and
measures
the
cost
of
overnight
borrowings
through
repurchase
agreement
transactions
collateralized
with
U.S.
Treasury
securities).
Any
potential
effects
of
the
transition
away
from
LIBOR
on
the
Funds
or
on
certain
instruments
in
which
a
Fund
invests
can
be
difficult
to
ascertain,
and
they
may
vary
depending
on
factors
that
include,
but
are
not
limited
to:
(i)
existing
fallback
or
termination
provisions
in
individual
contracts
and
(ii)
whether,
how,
and
when
industry
participants
develop
and
adopt
new
reference
rates
and
fallbacks
for
both
legacy
and
new
products
and
instruments.
For
example,
certain
of
the
Fund’s
investments
may
involve
individual
contracts
that
have
no
existing
fallback
provision
or
language
that
contemplates
the
discontinuation
of
LIBOR,
and
those
investments
could
experience
increased
volatility
or
illiquidity
as
a
result
of
the
transition
process.
In
addition,
interest
rate
provisions
included
in
such
contracts
may
need
to
be
renegotiated
in
contemplation
of
the
transition
away
from
LIBOR.
The
transition
may
also
result
in
a
reduction
in
the
value
of
certain
instruments
held
by
a
Fund,
including
those
described
in
this
paragraph,
or
a
reduction
in
the
effectiveness
of
related
Fund
transactions
such
as
hedges.
Any
such
effects
of
the
transition
away
from
LIBOR,
as
well
as
other
unforeseen
effects,
could
result
in
losses
to
a
Fund.
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
December
31,
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:
Purchases
Sales
U.S.
Strategic
Equity
Fund
$
441,515,002
$
417,657,912
U.S.
Small
Cap
Equity
Fund
276,808,287
301,239,263
International
Developed
Markets
Fund
262,990,171
274,664,398
Strategic
Bond
Fund
373,266,865
315,189,575
Global
Real
Estate
Securities
Fund
721,008,107
759,709,636
Purchases
Sales
Strategic
Bond
Fund
$
676,473,262
$
691,984,241
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
175
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.
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
December
31,
2019,
the
Funds
had
invested
$95,142,064
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
$53,841,150
is
invested
in
the
U.S.
Cash
Collateral
Fund,
an
unregistered
fund
advised
by
RIM.
The
advisory
fee
is
based
upon
the
average
daily
net
assets
of
each
Fund
and
the
administration
fee
of
up
to
0.05%
is
based
on
the
combined
average
daily
net
assets
of
the
Funds.
Advisory
and
administration
fees
are
paid
monthly.
The
following
table
shows
the
total
amount
of
each
of
these
fees
paid
by
the
Funds
for
the
period
ended
December
31,
2019:
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
services
provided
to
the
Funds
and
pays
the
balance
to
unaffiliated
agents
who
assist
in
providing
these
services.
Transfer
agency
fees
paid
by
the
Funds
presented
herein
for
the
period
ended
December
31,
2019
were
as
follows:
Annual
Rate
Funds
Adviser
(%)
Administration
(%)
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
Advisory
Administration
U.S.
Strategic
Equity
Fund
$
3,162,336
$
216,599
U.S.
Small
Cap
Equity
Fund
2,032,869
112,937
International
Developed
Markets
Fund
3,463,081
192,393
Strategic
Bond
Fund
4,982,598
452,964
Global
Real
Estate
Securities
Fund
7,347,925
459,245
Amount
U.S.
Strategic
Equity
Fund
$
18,504
U.S.
Small
Cap
Equity
Fund
9,633
International
Developed
Markets
Fund
16,418
Strategic
Bond
Fund
38,699
Global
Real
Estate
Securities
Fund
39,212
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
176
Notes
to
Financial
Statements
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.
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,
(iv)
to
execute
money
manager’s
portfolio
securities
transactions
for
the
segment
of
a
Fund’s
portfolio
assigned
to
the
money
manager,
or
(v)
to
execute
foreign
currency
transactions
on
behalf
of
the
Funds.
RIM
has
authorized
RIIS
to
effect
certain
futures,
swaps,
OTC
derivative
transactions,
and
cleared
swaps,
including
foreign
currency
spots,
forwards
and
options
trading
on
behalf
of
the
Funds.
The
Funds
are
permitted
to
purchase
or
sell
securities
from
or
to
certain
related
affiliated
funds
under
specified
conditions
outlined
in
procedures
adopted
by
the
Board.
The
procedures
have
been
designed
to
ensure
that
any
purchase
or
sale
of
securities
by
the
Funds
from
or
to
another
fund
or
portfolio
that
are,
or
could
be,
considered
an
affiliate
by
virtue
of
having
a
common
investment
adviser
(or
affiliated
investment
advisers),
common
Trustees
and/or
common
officers
complies
with
Rule
17a
-7
of
the
Investment
Company
Act.
Further,
as
defined
under
the
procedures
each
transaction
is
effected
at
the
current
market
value.
During
the
period
ended
December
31,
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.
For
the
period
ended
December
31,
2019,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$1,612,750.
Federal
Income
Taxes
At
December
31,
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:
Record
Ownership
At
December
31,
2019,
the
following
table
includes
shareholders
of
record
with
greater
than
10%
of
the
total
outstanding
shares
of
each
respective
Fund:
No
Expiration
Funds
Short
Term
Long-Term
Totals
International
Developed
Markets
Fund
$
1,024,488
$
9,295,856
$10,320,344
Global
Real
Estate
Securities
Fund
411,623
706,427
1,118,050
#
of
Shareholders
%
U.S.
Strategic
Equity
Fund
2
75.5
U.S.
Small
Cap
Equity
Fund
2
72.8
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2019
Notes
to
Financial
Statements
177
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
or
as
an
illiquid
and
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.
The
unfunded
loan
commitments
are
footnoted
in
the
Schedule
of
Investments.
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
of
the
financial
statements
or
additional
disclosures.
International
Developed
Markets
Fund
2
72.5
Strategic
Bond
Fund
1
71.2
Global
Real
Estate
Securities
Fund
2
90.9
Report
of
Independent
Registered
Public
Accounting
Firm
178
Report
of
Independent
Registered
Public
Accounting
Firm
To
the
Board
of
Trustees
of
Russell
Investment
Funds
and
Shareholders
of
U.S.
Strategic
Equity
Fund,
U.S.
Small
Cap
Equity
Fund,
International
Developed
Markets
Fund,
Strategic
Bond
Fund
and
Global
Real
Estate
Securities
Fund
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
U.S.
Strategic
Equity
Fund,
U.S.
Small
Cap
Equity
Fund,
International
Developed
Markets
Fund,
Strategic
Bond
Fund
and
Global
Real
Estate
Securities
Fund
(five
of
the
funds
constituting
Russell
Investment
Funds,
hereafter
collectively
referred
to
as
the
“Funds”)
as
of
December
31,
2019,
the
related
statements
of
operations
for
the
year
ended
December
31,
2019,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2019,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2019
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
December
31,
2019,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2019
and
each
of
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2019
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(“PCAOB”)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
December
31,
2019
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
February
21,
2020
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Russell
Investments
family
of
funds
since
1981.
PricewaterhouseCoopers
LLP,
1420
Fifth
Avenue,
Suite
2800,
Seattle,
WA
98101
T:
(206)
398
3000,
F:
(206)
398
3100,
www.pwc.com/us
Russell
Investment
Funds
Tax
Information
—
December
31,
2019
(Unaudited)
Tax
Information
179
For
the
tax
year
ended
December
31,
2019,
the
Funds
designate
100%
or
the
maximum
amount
allowable
of
their
net
taxable
income
as
qualified
dividends
taxed
at
individual
net
capital
gain
rates.
The
Form
1099
you
receive
in
January
2020
will
show
the
tax
status
of
all
distributions
paid
to
your
account
in
calendar
year
2019.
The
Funds
designate
dividends
distributed
during
the
fiscal
year
as
qualifying
for
the
dividends
received
deduction
for
corporate
shareholders
as
follows:
Pursuant
to
Section
852
of
the
Internal
Revenue
Code,
the
Funds
designate
the
following
amounts
as
long-term
capital
gain
dividends
for
their
taxable
year
ended
December
31,
2019:
The
Funds
listed
below
paid
foreign
taxes
and
recognized
foreign
source
income
during
the
taxable
year
ended
December
31,
2019.
Pursuant
to
Section
853
of
the
Internal
Revenue
Code,
the
Funds
designate
the
following
per
share
amounts
of
foreign
taxes
paid
and
income
earned
from
foreign
sources:
Please
consult
a
tax
adviser
for
any
questions
about
federal
or
state
income
tax
laws.
U.S.
Strategic
Equity
100.0%
U.S.
Small
Cap
Equity
100.0%
International
Developed
Markets
0.0%
Global
Real
Estate
Securities
0.0%
Strategic
Bond
0.0%
U.S.
Strategic
Equity
$
25,740,255
U.S.
Small
Cap
Equity
3,409,094
International
Developed
Markets
—
Global
Real
Estate
Securities
—
Strategic
Bond
3,613,267
Fund
Name
Foreign
Taxes
Paid
Foreign
Taxes
Paid
Per
Share
Foreign
Source
Income
Foreign
Source
Income
Per
Share
International
Developed
Markets
$
1,081,709
$
0.0319
$
12,317,178
$
0.3635
Russell
Investment
Funds
Affiliated
Brokerage
Transactions
—
December
31,
2019
(Unaudited)
180
Affiliated
Brokerage
Transactions
As
discussed
in
the
Note
4
in
the
Notes
to
Financial
Statements
contained
in
this
annual
report,
the
Funds
utilize
RIIS
and
its
independent
brokers.
RIIS
is
a
registered
broker
dealer
and
investment
adviser
and
an
affiliate
of
RIM.
RIIS
uses
a
multi-venue
trade
management
approach
whereby
RIIS
allocates
trades
among
RIIS’
network
of
independent
brokers
for
execution,
clearing,
and
other
services.
Trades
placed
through
RIIS
and
its
independent
brokers
are
made
(i)
to
manage
trading
associated
with
changes
in
money
managers,
rebalancing
across
existing
money
managers,
cash
flows
and
other
portfolio
transitions,
(ii)
to
execute
portfolio
securities
transactions
for
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
Funds’
non-
discretionary
managers,
(iv)
to
execute
money
manager
portfolio
securities
transactions
for
the
segment
of
a
Fund’s
portfolio
assigned
to
the
money
manager,
or
(v)
to
execute
foreign
currency
transactions
on
behalf
of
the
Funds.
RIM
has
authorized
RIIS
to
effect
certain
futures,
swaps,
OTC
derivative
transactions,
and
cleared
swaps,
including
foreign
currency
spots,
forwards
and
options
trading
on
behalf
of
the
Funds.
Amounts
retained
by
RIIS
for
the
period
ended
December
31,
2019
were
as
follows:
Fund
Name
U.S.
Strategic
Equity
Fund
$
48,664
U.S.
Small
Cap
Equity
Fund
70,960
International
Developed
Markets
Fund
105,629
Strategic
Bond
Fund
55,227
Global
Real
Estate
Securities
Fund
157,699
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Contracts
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Contracts
181
Approval
of
Money
Manager
Contracts
The
Board
received
the
following
proposals
from
RIM:
(i)
at
a
meeting
held
on
August
27,
2019,
to
approve
a
new
portfolio
management
contract
for
the
U.S.
Small
Cap
Equity
Fund;
and
(ii)
at
a
meeting
held
on
December
10,
2019,
to
approve
a
new
portfolio
management
contract
for
the
International
Developed
Markets
Fund.
In
the
case
of
each
proposed
change,
the
Trustees
approved
the
terms
of
the
proposed
portfolio
management
contract
based
upon
RIM’s
recommendation
to
hire
the
Money
Manager
at
the
proposed
fee
rate;
information
as
to
the
reason
for
the
proposed
change;
information
as
to
the
Money
Manager’s
role
in
the
management
of
the
Fund’s
investment
portfolio
(including
the
amount
of
Fund
assets
to
be
allocated
to
the
Money
Manager
or
managed
pursuant
to
the
Money
Manager’s
strategy)
and
RIM’s
evaluation
of
the
anticipated
quality
of
the
investment
advisory
services
to
be
provided
by
the
Money
Manager;
information
as
to
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Fund’s
underwriter;
the
CCO’s
evaluation
of
the
Money
Manager’s
compliance
program,
policies
and
procedures
in
relation
to
the
Money
Manager’s
role
in
the
management
of
the
Fund’s
investment
portfolio,
and
certification
that
they
were
consistent
with
applicable
legal
standards;
RIM’s
explanation
as
to
the
lack
of
relevance
of
Money
Manager
profitability
to
the
evaluation
of
portfolio
management
contracts
with
Money
Managers
because
the
willingness
of
Money
Managers
to
serve
in
such
capacity
depends
upon
arm’s-length
negotiations
with
RIM;
RIM’s
awareness
of
the
standard
fee
rates
charged
by
the
Money
Manager
to
other
clients;
RIM’s
belief
that
the
proposed
Money
Manager
fees
would
be
reasonable
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered;
the
increase
or
decrease
in
aggregate
Money
Manager
fees
to
be
paid
by
RIM
from
its
advisory
fee
as
a
result
of
the
engagement
of
the
Money
Manager;
and
the
expected
costs
of
transitioning
Fund
assets
to
the
Money
Manager
or
its
strategy.
The
Trustees’
approval
also
reflected
their
findings
at
prior
meetings,
including
their
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
—
December
31,
2019
(Unaudited)
182
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
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,
2019
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
—
December
31,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
183
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.
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
—
December
31,
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)
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
—
December
31,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
185
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
—
December
31,
2019
(Unaudited)
186
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)
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
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
—
December
31,
2019
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
187
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
—
December
31,
2019
(Unaudited)
188
Adviser,
Money
Managers
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
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
Managers
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
Jacobs
Levy
Equity
Management,
Inc.,
Florham
Park,
NJ
Penn
Capital
Management
Company,
Inc.,
Philadelphia,
PA
Ranger
Investment
Management,
L.P.,
Dallas
TX
International
Developed
Markets
Fund
Intermede
Global
Partners
Inc.,
San
Francisco,
CA
and
Intermede
Investment
Partners
Limited,
London,
United
Kingdom
Pzena
Investment
Management
LLC,
New
York,
NY
Wellington
Management
Company
LLP,
Boston,
MA
Strategic
Bond
Fund
Colchester
Global
Investors
Limited,
London,
England
Schroder
Investment
Management
North
America
Inc.,
New
York,
NY
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
RREEF
America
L.L.C.,
Chicago,
IL,
Deutsche
Investments
Australia
Limited,
Sydney,
Australia
and
Deutsche
Alternative
Management
(Global)
Limited,
London,
United
Kingdom
operating
under
the
brand
name
Deutsche
Asset
Management
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
Item 2. Code of Ethics. [Annual Report Only]
(a) As of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer (“Code”).
(b) That Code comprises written standards that are reasonably designed to deter wrongdoing and to promote:
1) honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
2) full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by each Mutual Fund;
3) compliance with applicable laws and governmental rules and regulations;
4) the prompt internal reporting to an appropriate person or persons identified in the Code of violations of the Code; and
5) accountability for adherence to the Code.
(c) The Code was restated as of August 2015; the restatement did not involve any material change.
(d) As of the end of the period covered by the report, there have been no waivers granted from a provision of the Code that applies to the registrant’s principal executive officer and principal financial officer.
(e) Not applicable.
(f) The registrant has filed with the SEC, pursuant to Item 12(a)(1), a copy of the Code that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, as an exhibit to its annual report on this Form N-CSR.
Item 3. Audit Committee Financial Expert. [Annual Report Only]
Registrant's board of trustees has determined that the Registrant has at least one audit committee financial expert serving on its audit committee. Cheryl Burgermeister has been determined to be the Audit Committee Financial Expert and is also determined to be “independent” for purposes of Item 3, paragraph (a)(2)(i) and (ii) of Form N-CSR.
Item 4. Principal Accountant Fees and Services. [Annual Report Only]
Audit Fees
(a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:
2018 $285,769
2019 $295,802
Audit-Related Fees
(b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item and the nature of the services comprising those fees were as follows:
Fees Nature of Services
2018 $102,552 Tax auditing services
2019 $105,597 Tax auditing services
Tax Fees
(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning and the nature of the services comprising the fees were as follows:
Fees Nature of Services
2018 $87,533 Tax services
2019 $90,160 Tax services
All Other Fees
(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item and the nature of the services comprising those fees were as follows:
Fees Nature of Services
2018 $0
2019 $0
(e) (1) Registrant’s audit committee has adopted the following pre-approval policies and procedures for certain services provided by Registrant’s accountants:
Russell Investment Funds
Russell Investment Company
Russell Investment Funds
Audit and Non-Audit Services Pre-Approval Policy
Effective Date: August 28, 2018
I. Statement of Purpose.
This Audit and Non-Audit Services Pre-Approval Policy (“Policy”) has been adopted by the joint Audit Committee (the “Audit Committee”) of Russell Investment Company (“RIC”) and Russell Investment Funds (“RIF”) to apply to any and all engagements of the independent auditor to RIC and RIF, respectively, for audit, non-audit, tax or other services. The term “Fund” shall collectively refer to each series of RIC and RIF. The term “Investment Adviser” shall refer to the Funds’ adviser, Russell Investment Management, LLC (“RIM”). This Policy does not delegate to management the responsibilities set forth herein for the pre-approval of services performed by the Funds’ independent auditor.
II. Statement of Principles.
Under the Sarbanes-Oxley Act of 2002 (the “Act”), the Audit Committee of the Funds’ Board of Trustees (the “Audit Committee”) is charged with responsibility for the appointment, compensation and oversight of the work of the independent auditor for the Funds. As part of these responsibilities, the Audit Committee is required to pre-approve the audit services and permissible non-audit services such as audit-related, tax and other services (“non-audit services”) performed by the independent auditor for the Funds to assure that the independence of the auditor is not in any way compromised or impaired. In determining whether an auditor is independent in light of the services it provides to a Fund, there are three guiding principles under the Act that must be considered. In general, the independence of the auditor to the Funds would be deemed impaired if the auditor provides a service whereby it:
·
Functions in the role of management of the Funds, the adviser of the Funds or any other affiliate*
of the Funds;·
Is in the position of auditing its own work; or·
Serves in an advocacy role for the Funds, the adviser of the Funds or any other affiliate of the Funds.Accordingly, it is the Funds’ policy that the independent auditor for the Funds must not be engaged to perform any service that contravenes any of the three guidelines set forth above, or which in any way could be deemed to impair or compromise the independence of the auditor for the Funds. This Policy is designed to accomplish those requirements and will henceforth be applied to all engagements by the Funds of their independent auditor, whether for audit, audit-related, tax, or other non-audit services.
Rules adopted by the United States Securities and Exchange Commission (the “SEC”) establish two distinct approaches to the pre-approval of services by the Audit Committee. The proposed services either may receive general pre-approval through adoption by the Audit Committee of a list of authorized services for the fund, together with a budget of expected costs for those services (“general pre-approval”), or specific pre-approval by the Audit Committee of all services provided to the fund on a case-by-case basis (“specific pre-approval”).
The Funds’ Audit Committee believes that the combination of these two approaches reflected in this Policy will result in an effective and efficient procedure for the pre-approval of permissible services performed by the Funds’ independent auditor. The Funds’ Audit and Non-Audit Pre-Approved Services Schedule lists the audit, audit-related, tax and other services that have the general pre-approval of the Audit Committee. As set forth in this Policy, unless a particular service has received general pre-approval, those services will require specific pre-approval by the Audit Committee before any such services can be provided by the independent auditor. Any proposed service to the Funds that exceeds the pre-approved budget for those services will also require specific pre-approval by the appropriate Audit Committee.
In assessing whether a particular audit or non-audit service should be approved, the Audit Committee will take into account the ratio between the total amounts paid for audit, audit-related, tax and other services, based on historical patterns, with a view toward assuring that the level of fees paid for non-audit services as they relate to the fees paid for audit services does not compromise or impair the independence of the auditor. The Audit Committee will review the list of general pre-approved services, including the pre-approved budget for those services, at least annually and more frequently if deemed appropriate by the Audit Committee, and may implement changes thereto from time to time.
III. Delegation.
As provided in the Act and in the SEC’s rules, the Audit Committee from time to time may delegate either general or specific pre-approval authority to one or more of its members. Any member to whom such authority is delegated must report any pre-approval decisions to the Audit Committee at its next scheduled meeting.
IV. Audit Services.
The annual audit services engagement terms and fees for the independent auditor for the Funds require specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the independent auditor in order to be able to form an opinion on the financial statements for the Funds for that year. These other procedures include reviews of information systems, procedural reviews and testing performed in order to understand and rely on the Funds’ systems of internal control, and consultations relating to the audit. Audit services also include the attestation engagement for the independent auditor’s report on the report from management on financial reporting internal controls. The Audit Committee will review the audit services engagement as necessary or appropriate in the sole judgment of the Audit Committee.
In addition to the pre-approval by the Audit Committee of the annual engagement of the independent auditor to perform audit services, the Audit Committee may grant general pre-approval to other audit services, which are those services that only the independent auditor reasonably can provide. These services are generally related to the issuance of an audit opinion, and may include statutory audits and services associated with the Funds’ SEC registration statement on Form N-1A, periodic reports and documents filed with or information requested by the SEC or other regulatory or self-regulatory organizations, or other documents issued in connection with the Funds’ securities offerings.
The Audit Committee has pre-approved the audit services set forth in Schedule A of the Audit and Non-Audit Pre-Approved Services Schedule. All other audit services not listed in Schedule A of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by the Audit Committee or its delegate.
V. Audit-Related Services.
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the financial statements for the Funds, or the separate financial statements for a series of the Funds that are traditionally performed by the independent auditor. Because the Audit Committee believes that the provision of audit-related services does not compromise or impair the independence of the auditor and is consistent with the SEC’s rules on auditor independence, the Audit Committee may grant pre-approval to audit related services. “Audit related services” include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services;” assistance with understanding and implementing new accounting and financial reporting or disclosure matters not classified as “audit services;” assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal reporting requirements, including those under Form N-CEN and Form N-CSR.
The Audit Committee has pre-approved the audit-related services set forth in Schedule B of the Audit and Non-Audit Pre-Approved Services Schedule. All other audit-related services not listed in Schedule B of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by the Audit Committee or its delegate.
VI. Tax Services.
The Audit Committee believes that the independent auditor can provide tax services to the Funds, such as tax compliance, tax planning and tax advice, without impairing the auditor’s independence and the SEC has stated that the independent auditor may provide such services. Consequently, the Audit Committee believes that it may grant general pre-approval to those tax services that have historically been provided by the auditor, that the Audit Committee has reviewed and believes would not impair the independence of the auditor, and that are consistent with the SEC’s rules on auditor independence. However, the Audit Committee will not permit the retention of the independent auditor to provide tax advice in connection with any transaction recommended by the independent auditor, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported by the United States Internal Revenue Code and related regulations or the applicable tax statutes and regulations that apply to the Funds’ investments outside the United States. The Audit Committee will consult with the Treasurer of the Funds or outside counsel to determine that the Funds’ tax planning and reporting positions are consistent with this policy.
The Audit Committee has pre-approved the tax services set forth in Schedule C of the Audit and Non-Audit Pre-Approved Services Schedule. All other tax services not listed in Schedule C of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by the Audit Committee or its delegate.
VII. All Other Services.
The Audit Committee believes, based on the SEC’s rules prohibiting the independent auditor from providing specific non-audit services, that other types of non-audit services are permitted. Accordingly, the Audit Committee believes that it may grant general pre-approval to those permissible non-audit services classified as “all other” services that the Audit Committee believes are routine and recurring services, would not impair or compromise the independence of the auditor and are consistent with the SEC’s rules on auditor independence.
The Audit Committee has pre-approved the permissible “all other services” set forth in Schedule D of the Audit and Non-Audit Pre-Approved Services Schedule. Permissible “all other services” not listed in Schedule D of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by the Audit Committee or its delegate.
A list of the SEC’s prohibited non-audit services are as follows:
- Bookkeeping or other services relating to the accounting records or financial statements of the Funds
- Financial information system design and implementation
- Appraisal or valuation services, fairness opinions or contribution-in-kind reports
- Actuarial services
- Internal audit outsourcing services
- Management functions
- Human resources services
- Broker-dealer, investment adviser or investment banking services
- Legal services unrelated to the audit
- Expert services unrelated to the audit
The SEC’s rules and relevant official interpretations and guidance should be consulted to determine the scope of these prohibited services and the applicability of any exceptions to certain of the prohibitions. Under no circumstance may an executive, manager or associate of the Funds, or the Investment Adviser, authorize the independent auditor for the Funds to provide prohibited non-audit services.
VIII. De Minimis Waiver.
IX.
In accordance with the Act and SEC regulations, notwithstanding anything in this Policy to the contrary, the pre-approval requirements of this Policy are waived with respect to the provision of non-audit services that are permissible for an independent auditor to perform, provided:
(a) The aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by RIC or RIF, as applicable, to the independent auditor during the fiscal year in which the services were provided;
(b) Such services were not recognized by the Funds at the time of the engagement to be non-audit services requiring pre-approval by the Audit Committee or its delegate; and
(c) Such services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee or its delegate prior to the completion of the audit, pursuant to the pre-approval provisions of this Policy.
In connection with the approval of any non-audit service pursuant to this de minimis exception, a record shall be made indicating that each of the conditions for this exception has been satisfied.
X. Pre-Approval Fee Levels or Budgeted Amounts.
Pre-approved fee levels or budgeted amounts for all services to be provided by the independent auditor will be established annually by the Audit Committee and shall be subject to periodic subsequent review during the year if deemed appropriate by the Audit Committee (separate amounts may be specified for the Funds and for other affiliates in the investment company complex subject to pre-approval). Any proposed services exceeding these levels or amounts will require specific pre-approval by the Audit Committee. The Audit Committee will be mindful of the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services. For each fiscal year, the Audit Committee may determine the appropriateness of the ratio between the total amount of fees for audit, audit-related, and tax services for the Funds (including any audit-related or tax services fees for affiliates subject to pre-approval), and the total amount of fees for certain permissible non-audit services classified as “all other services” for the Funds (including any such services for affiliates subject to pre-approval by the Audit Committee or its delegate).
XI. Procedures.
All requests or applications for services to be provided by the independent auditor that do not require specific pre-approval by the Audit Committee will be submitted to the “RIC & RIF Clearance Committee” (the “Clearance Committee”) (which shall be comprised of not less than three members, including the Treasurer of the Funds who shall serve as its Chairperson) and must include a detailed description of the services to be rendered and the estimated costs of those services. The Clearance Committee will determine whether such services are included within the list of services that have received general pre-approval by the Audit Committee. The Audit Committee will be informed not less frequently than quarterly by the Chairperson of the Clearance Committee of any such services rendered by the independent auditor for the Funds and the fees paid to the independent auditors for such services.
Requests or applications to provide services that require specific pre-approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Clearance Committee and must include a joint certification by the engagement partner of the independent auditor and the Chairperson of the Clearance Committee that, in their view, the request or application does not involve a prohibited non-audit service and is consistent with the SEC’s rules governing auditor independence.
Russell Investments’ Internal Audit Department and the officers of RIC and RIF will report to the Chairman of the Audit Committee any breach of this Policy that comes to the attention of the Internal Audit Department or an officer of RIC or RIF.
XII. Additional Requirements.
The Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work performed by the independent auditor and to assure the independent auditor’s continuing independence from the Funds and their affiliates. Such efforts will include, but not be limited to, reviewing a written annual statement from the independent auditor delineating all relationships between the independent auditor and RIC, RIF, RIM and their subsidiaries and affiliates, consistent with the Public Company Accounting Oversight Board’s Independence Standards Board Standard No. 1, and discussing with the independent auditor its methods and procedures for ensuring its independence.
(e) (2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X is as follows:
Audit Fees 0%
Audit-Related Fees 0%
Tax Fees 0%
All Other Fees 0%
(f) For services, 50 percent or more of which were pre-approved, the percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.
(g) The aggregate non-audit fees billed by registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were as follows:
2018 $0
2019 $0
(h) The registrant’s audit committee of the board of trustees has considered whether the provision of nonaudit services that were rendered to the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants. [Not Applicable]
Item 6. [Schedules of Investments are included as part of the Report to Shareholders filed under Item 1 of this form]
Items 7-9. [Not Applicable]
Item 10. Submission of Matters to a Vote of Security Holders
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures
(a) Registrant's principal executive officer and principal financial officer have concluded that Registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of these controls and procedures as of a date within 90 days of the date this report is filed with the Securities and Exchange Commission.
(b) There were no significant changes in Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected or is likely to materially affect Registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies [Not Applicable]
Item 13. Exhibit List
(a) Registrant’s code of ethics described in Item 2
(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
/s/ Mark E. Swanson
Mark E. Swanson
President, Chief Executive Officer, Treasurer, Chief Accounting Officer and Chief Financial Officer, Russell Investment Funds
President, Chief Executive Officer, Treasurer, Chief Accounting Officer and Chief Financial Officer, Russell Investment Funds
Date: February 24, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.
Company Act of 1940, this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.
/s/ Mark E. Swanson
Mark E. Swanson
President, Chief Executive Officer, Treasurer, Chief Accounting Officer and Chief Financial Officer, Russell Investment Funds
President, Chief Executive Officer, Treasurer, Chief Accounting Officer and Chief Financial Officer, Russell Investment Funds
Date: February 24, 2020
*
For purposes of this Policy, an affiliate of the Funds is defined as the Funds’ investment adviser (but not a sub-adviser whose role is primarily portfolio management and whose activities are overseen by the principal investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Fund.