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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
Russell Investment Funds
1301 2nd Avenue
18th Floor
Seattle, Washington 98101
206-505-4846
______________________________________________
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-787-7354
Date of fiscal year end: December 31
Date of reporting period: January 1, 2020 to June 30, 2020
Item 1. Reports to Stockholders
2020
SEMI-ANNUAL
REPORT
Russell
Investment
Funds
JUNE
30,
2020
FUND
U.S.
Strategic
Equity
Fund
U.S.
Small
Cap
Equity
Fund
International
Developed
Markets
Fund
Strategic
Bond
Fund
Global
Real
Estate
Securities
Fund
Beginning
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
paper
copies
of
the
Funds’
annual
and
semi-annual
shareholder
reports
like
this
one
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
supported
by
your
financial
professional
or
variable
annuity
provider,
you
may
elect
to
receive
shareholder
reports
and
other
Fund
communications
electronically.
Please
contact
your
financial
professional
or
variable
annuity
provider
for
more
information.
You
may
elect
to
receive
all
future
shareholder
reports
in
paper
free
of
charge.
Please
contact
your
financial
professional
or
variable
annuity
provider
to
inform
them
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports.
Your
election
to
receive
reports
in
paper
will
apply
to
all
Russell
Investment
Funds
and
other
funds
you
hold
with
your
financial
professional
or
variable
annuity
provider.
Russell
Investment
Funds
Russell
Investment
Funds
is
a
series
investment
company
with
nine
different
investment
portfolios
referred
to
as
Funds.
These
financial
statements
report
on
five
of
these
Funds.
Page
U.S.
Strategic
Equity
Fund
3
U.S.
Small
Cap
Equity
Fund
21
International
Developed
Markets
Fund
45
Strategic
Bond
Fund
69
Global
Real
Estate
Securities
Fund
125
Notes
to
Schedules
of
Investments
141
Notes
to
Financial
Highlights
143
Notes
to
Financial
Statements
144
Affiliated
Brokerage
Transactions
164
Basis
for
Approval
of
Investment
Advisory
Agreement
165
Liquidity
Risk
Management
Program
175
Shareholder
Requests
for
Additional
Information
176
Disclosure
of
Information
about
Fund
Trustees
and
Officers
177
Adviser,
Money
Managers
and
Service
Providers
181
Russell
Investment
Funds
Semi-annual
Report
June
30,
2020
(Unaudited)
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.
Fund
objectives,
risks,
charges
and
expenses
should
be
carefully
considered
before
in-
vesting.
A
prospectus
containing
this
and
other
important
information
must
precede
or
accompany
this
material.
Please
read
the
prospectus
carefully
before
investing.
Securities
distributed
through
Russell
Investments
Financial
Services,
LLC,
member
FINRA
and
part
of
Russell
Investments.
Performance
quoted
represents
past
performance
and
does
not
guarantee
future
results.
The
investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
U.S.
Strategic
Equity
Fund
3
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2020
$
986
.90
$
1,020
.64
Expenses
Paid
During
Period*
$
4
.20
$
4
.27
*
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
182/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
4
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
93.8%
Consumer
Discretionary
-
15.3%
Advance
Auto
Parts,
Inc.
2,043
291
Amazon.com,
Inc.(Æ)
6,489
17,903
Amerco
,
Inc.
627
189
AutoNation,
Inc.(Æ)
4,144
156
Best
Buy
Co.,
Inc.
5,999
524
BorgWarner,
Inc.
8,159
288
Bright
Horizons
Family
Solutions,
Inc.(Æ)
2,077
243
Brunswick
Corp.
2,105
135
Capri
Holdings,
Ltd.(Æ)
5,875
92
Carnival
Corp.(Ñ)
3,338
55
Carter's,
Inc.
1,611
130
Charter
Communications,
Inc.
Class
A(Æ)
14,965
7,633
Chipotle
Mexican
Grill,
Inc.
Class
A(Æ)
116
122
Choice
Hotels
International,
Inc.
3,980
314
Columbia
Sportswear
Co.
1,096
88
Comcast
Corp.
Class
A
34,210
1,334
Costco
Wholesale
Corp.
2,363
716
Darden
Restaurants,
Inc.
21,159
1,603
Dick's
Sporting
Goods,
Inc.
6,312
260
Discovery,
Inc.
Class
A(Æ)(Ñ)
3,691
78
Dollar
General
Corp.
3,100
591
DR
Horton,
Inc.
24,291
1,347
eBay,
Inc.
9,193
482
Expedia
Group,
Inc.
1,917
158
Extended
Stay
America,
Inc.
10,010
112
Floor
&
Decor
Holdings,
Inc.
Class
A(Æ)
2,227
128
Foot
Locker,
Inc.
7,438
217
Ford
Motor
Co.
55,821
339
Gap,
Inc.
(The)
18,045
228
Garmin,
Ltd.
3,337
325
General
Motors
Co.
111,961
2,833
Gentex
Corp.
24,202
624
Genuine
Parts
Co.
3,441
299
Goodyear
Tire
&
Rubber
Co.
(The)
16,183
145
Graham
Holdings
Co.
Class
B
356
122
Grand
Canyon
Education,
Inc.(Æ)
1,590
144
Hanesbrands,
Inc.
12,187
138
Home
Depot,
Inc.
(The)
5,502
1,378
Kohl's
Corp.
10,918
227
Lear
Corp.
1,218
133
Leggett
&
Platt,
Inc.
4,651
163
Lennar
Corp.
Class
A
7,013
432
Lennar
Corp.
Class
B
2,463
114
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Liberty
SiriusXM
Group
Class
C(Æ)
6,835
235
LKQ
Corp.(Æ)
14,272
374
Lowe's
Cos.,
Inc.
1,797
243
Lululemon
Athletica
,
Inc.(Æ)
1,582
494
Macy's,
Inc.(Ñ)
25,091
173
McDonald's
Corp.
2,773
512
Mohawk
Industries,
Inc.(Æ)
2,644
269
Netflix,
Inc.(Æ)
13,569
6,174
Nike,
Inc.
Class
B
66,757
6,546
Nordstrom,
Inc.(Ñ)
10,259
159
Norwegian
Cruise
Line
Holdings,
Ltd.(Æ)(Ñ)
7,320
120
NVR,
Inc.(Æ)
70
228
Ollie's
Bargain
Outlet
Holdings,
Inc.(Æ)
2,419
236
Omnicom
Group,
Inc.
3,467
189
O'Reilly
Automotive,
Inc.(Æ)
525
221
Penske
Automotive
Group,
Inc.
3,280
127
Polaris,
Inc.
3,134
290
PulteGroup,
Inc.
50,865
1,731
PVH
Corp.
4,338
208
Ralph
Lauren
Corp.
Class
A
2,230
162
Ross
Stores,
Inc.
4,099
349
Royal
Caribbean
Cruises,
Ltd.(Ñ)
2,807
141
Sensata
Technologies
Holding
PLC(Æ)
5,004
186
Skechers
USA,
Inc.
Class
A(Æ)
6,643
208
Starbucks
Corp.
59,551
4,382
Tapestry,
Inc.
12,285
163
Target
Corp.
5,422
650
Thor
Industries,
Inc.
2,247
239
Tiffany
&
Co.
1,277
156
TJX
Cos.,
Inc.
5,401
273
Tractor
Supply
Co.
2,270
299
Ulta
Salon
Cosmetics
&
Fragrance,
Inc.(Æ)
3,515
715
Under
Armour
,
Inc.
Class
A(Æ)
7,984
78
Urban
Outfitters,
Inc.(Æ)
7,043
107
VF
Corp.
2,803
171
ViacomCBS
,
Inc.
Class
B
10,067
235
Walmart,
Inc.
8,705
1,043
Walt
Disney
Co.
(The)
7,265
810
Whirlpool
Corp.(Ñ)
1,874
243
Williams-Sonoma,
Inc.
4,349
357
Yum
China
Holdings,
Inc.
3,171
152
72,481
Consumer
Staples
-
3.9%
Archer-Daniels-Midland
Co.
8,634
344
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
5
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Casey's
General
Stores,
Inc.
582
87
Clorox
Co.
(The)
446
98
Coca-Cola
Co.
(The)
20,059
896
CVS
Health
Corp.
48,541
3,154
Estee
Lauder
Cos.,
Inc.
(The)
Class
A
1,424
269
General
Mills,
Inc.
2,979
184
Hormel
Foods
Corp.
1,723
83
Ingredion,
Inc.
23,722
1,969
JM
Smucker
Co.
(The)(Ñ)
3,096
328
Kroger
Co.
(The)
79,442
2,689
Molson
Coors
Beverage
Co.
Class
B
46,711
1,605
Mondelez
International,
Inc.
Class
A
8,443
432
Monster
Beverage
Corp.(Æ)
2,598
180
PepsiCo,
Inc.
7,645
1,011
Philip
Morris
International,
Inc.
5,193
364
Procter
&
Gamble
Co.
(The)
15,970
1,910
Sysco
Corp.
1,609
88
Tyson
Foods,
Inc.
Class
A
42,746
2,552
US
Foods
Holding
Corp.(Æ)
5,544
109
Walgreens
Boots
Alliance,
Inc.
7,886
334
18,686
Energy
-
1.4%
BP
PLC
-
ADR(Ñ)
80,570
1,880
Canadian
Natural
Resources,
Ltd.
78,011
1,360
Chevron
Corp.
18,111
1,616
ConocoPhillips
13,264
557
Exxon
Mobil
Corp.
6,152
275
Magna
International,
Inc.
Class
A
16,472
733
6,421
Financial
Services
-
17.9%
Aflac,
Inc.
9,823
354
Alliance
Data
Systems
Corp.
2,771
125
Allstate
Corp.
(The)
4,650
451
American
Express
Co.
1,079
103
American
Homes
4
Rent
Class
A(ö)
3,460
93
American
Tower
Corp.(ö)
2,084
539
Annaly
Capital
Management,
Inc.(ö)
375,770
2,465
Apple
Hospitality
REIT,
Inc.(ö)
19,915
192
AvalonBay
Communities,
Inc.(ö)
1,131
175
Banco
Santander
SA
-
ADR(Ñ)
306,041
738
Bank
of
America
Corp.
128,583
3,054
Bank
of
New
York
Mellon
Corp.
(The)
5,310
205
Berkshire
Hathaway,
Inc.
Class
B(Æ)
21,745
3,882
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
BlackRock,
Inc.
Class
A
1,517
825
Boston
Properties,
Inc.
(ö)
10,423
942
Broadridge
Financial
Solutions,
Inc.
2,086
263
Brookfield
Property
REIT,
Inc.
Class
A(Ñ)(ö)
12,292
122
Capital
One
Financial
Corp.
2,570
161
Cboe
Global
Markets,
Inc.
503
47
CBRE
Group,
Inc.
Class
A(Æ)
6,371
288
Charles
Schwab
Corp.
(The)
23,971
809
Chubb,
Ltd.
3,410
432
Citigroup,
Inc.
104,820
5,356
Citizens
Financial
Group,
Inc.
62,108
1,568
CME
Group,
Inc.
Class
A
30,755
4,999
Comerica,
Inc.
36,063
1,374
Crown
Castle
International
Corp.(ö)
1,803
302
CubeSmart
(ö)
3,992
108
Discover
Financial
Services
2,083
104
Equinix
,
Inc.(ö)
331
232
Essent
Group,
Ltd.
24,126
875
Essex
Property
Trust,
Inc.(ö)
452
104
Everest
Re
Group,
Ltd.
130
27
Fidelity
National
Information
Services,
Inc.
4,609
618
Fiserv,
Inc.(Æ)
2,540
248
FleetCor
Technologies,
Inc.(Æ)
1,063
267
Global
Payments,
Inc.
3,663
621
Goldman
Sachs
Group,
Inc.
(The)
378
75
Hartford
Financial
Services
Group,
Inc.
3,157
122
Host
Hotels
&
Resorts,
Inc.(ö)
9,213
99
Invitation
Homes,
Inc.(ö)
4,938
136
Jack
Henry
&
Associates,
Inc.
2,410
444
JPMorgan
Chase
&
Co.
42,710
4,017
KeyCorp
919
11
KKR
&
Co.,
Inc.
Class
A
222,468
6,870
Life
Storage,
Inc.(ö)
727
69
M&T
Bank
Corp.
1,944
202
MasterCard,
Inc.
Class
A
32,913
9,732
Medical
Properties
Trust,
Inc.(ö)
3,345
63
Merck
&
Co.,
Inc.
14,451
1,117
MetLife,
Inc.
4,703
172
Morgan
Stanley
1,705
82
Northern
Trust
Corp.
3,311
263
PayPal
Holdings,
Inc.(Æ)
51,397
8,955
People's
United
Financial,
Inc.
3,680
43
PNC
Financial
Services
Group,
Inc.
(The)
2,876
303
Popular,
Inc.
12,027
447
Progressive
Corp.
(The)
1,337
107
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
6
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Prudential
Financial,
Inc.
2,506
153
Public
Storage(ö)
963
185
Raymond
James
Financial,
Inc.
1,839
127
Regency
Centers
Corp.(ö)
1,726
79
Reinsurance
Group
of
America,
Inc.
Class
A
1,509
118
RenaissanceRe
Holdings,
Ltd.
5
1
SLM
Corp.
101,178
711
State
Street
Corp.
2,147
136
Sun
Communities,
Inc.(ö)
628
85
Synchrony
Financial
8,472
188
Travelers
Cos.,
Inc.
(The)
3,142
358
Truist
Financial
Corp.
8,337
313
Two
Harbors
Investment
Corp.(Ñ)(ö)
225,378
1,136
US
Bancorp
8,817
325
VEREIT,
Inc.(ö)
11,367
73
Visa,
Inc.
Class
A
59,665
11,524
Wells
Fargo
&
Co.
108,002
2,765
Western
Union
Co.
(The)(Ñ)
11,682
253
WP
Carey,
Inc.(ö)
1,391
94
85,021
Health
Care
-
15.2%
Abbott
Laboratories
10,603
969
AbbVie,
Inc.
18,460
1,812
Abiomed
,
Inc.(Æ)
1,856
448
Agilent
Technologies,
Inc.
7,578
670
Agios
Pharmaceuticals,
Inc.(Æ)
2,044
109
Alexion
Pharmaceuticals,
Inc.(Æ)
16,338
1,834
Align
Technology,
Inc.(Æ)
2,255
619
Alkermes
PLC(Æ)
14,653
284
Alnylam
Pharmaceuticals,
Inc.(Æ)
2,589
383
Amgen,
Inc.
2,239
528
Anthem,
Inc.(Æ)
1,207
317
AstraZeneca
PLC
-
ADR
16,079
850
Baxter
International,
Inc.
6,824
588
Becton
Dickinson
and
Co.
2,678
641
Biogen,
Inc.(Æ)
2,834
758
BioMarin
Pharmaceutical,
Inc.(Æ)
1,022
126
Bluebird
Bio,
Inc.(Æ)
3,503
214
Boston
Scientific
Corp.(Æ)
10,245
360
Bristol-Myers
Squibb
Co.
36,709
2,158
Cantel
Medical
Corp.
3,882
172
Centene
Corp.(Æ)
7,579
482
Cerner
Corp.
7,539
517
Cigna
Corp.
2,621
492
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Cooper
Cos.,
Inc.
(The)
1,361
386
Dentsply
Sirona,
Inc.
3,268
144
DexCom
,
Inc.(Æ)
948
384
Edwards
Lifesciences
Corp.(Æ)
9,534
659
Eli
Lilly
&
Co.
4,594
754
Envista
Holdings
Corp.(Æ)(Ñ)
18,972
400
Exact
Sciences
Corp.(Æ)
1,507
131
Exelixis
,
Inc.(Æ)
15,276
363
Gilead
Sciences,
Inc.
7,226
556
HCA
Healthcare,
Inc.
14,043
1,363
Henry
Schein,
Inc.(Æ)
2,208
129
Hill-Rom
Holdings,
Inc.
2,362
259
Hologic
,
Inc.(Æ)
2,266
129
Humana,
Inc.
425
165
ICU
Medical,
Inc.(Æ)
1,174
216
IDEXX
Laboratories,
Inc.(Æ)
459
152
Illumina,
Inc.(Æ)
16,122
5,971
Incyte
Corp.(Æ)
5,060
526
Insulet
Corp.(Æ)
433
84
Integra
LifeSciences
Holdings
Corp.(Æ)
3,940
185
Intuitive
Surgical,
Inc.(Æ)
10,376
5,913
IQVIA
Holdings,
Inc.(Æ)
48,305
6,854
Jazz
Pharmaceuticals
PLC(Æ)
13,161
1,452
Johnson
&
Johnson
32,704
4,599
Laboratory
Corp.
of
America
Holdings(Æ)
2,367
393
Masimo
Corp.(Æ)
1,953
445
MEDNAX,
Inc.(Æ)
9,580
164
Medtronic
PLC
25,309
2,321
Moderna
,
Inc.(Æ)
3,263
210
Mylan
NV(Æ)
52,279
841
Neurocrine
Biosciences,
Inc.(Æ)
831
101
Penumbra,
Inc.(Æ)
1,072
192
Pfizer,
Inc.
91,818
3,002
Quest
Diagnostics,
Inc.
3,476
396
Regeneron
Pharmaceuticals,
Inc.(Æ)
844
526
ResMed
,
Inc.
3,433
659
Sage
Therapeutics,
Inc.(Æ)
2,682
112
Seattle
Genetics,
Inc.(Æ)
1,169
199
STERIS
PLC
2,814
432
Stryker
Corp.
3,089
557
Teleflex,
Inc.
758
276
Thermo
Fisher
Scientific,
Inc.
2,717
984
United
Therapeutics
Corp.(Æ)
2,788
337
UnitedHealth
Group,
Inc.
26,907
7,937
Universal
Health
Services,
Inc.
Class
B
3,794
352
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
7
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Varian
Medical
Systems,
Inc.(Æ)
2,969
364
Veeva
Systems,
Inc.
Class
A(Æ)
1,545
362
Vertex
Pharmaceuticals,
Inc.(Æ)
2,854
829
West
Pharmaceutical
Services,
Inc.
2,655
603
Zimmer
Biomet
Holdings,
Inc.
12,660
1,511
Zoetis,
Inc.
Class
A
5,319
729
71,939
Materials
and
Processing
-
4.3%
Air
Products
&
Chemicals,
Inc.
144
35
Alcoa
Corp.(Æ)
50,979
573
Ball
Corp.
92,259
6,411
Carrier
Global
Corp.
7,844
174
Copart
,
Inc.(Æ)
1,742
145
Crown
Holdings,
Inc.(Æ)
31,816
2,072
DowDuPont
,
Inc.
36,451
1,937
Eastman
Chemical
Co.
18,501
1,288
Ecolab,
Inc.
87
17
Fastenal
Co.
4,175
179
Freeport-McMoRan,
Inc.
132,172
1,529
Huntsman
Corp.
83,581
1,502
Lennox
International,
Inc.
546
127
Linde
PLC(Æ)
1,593
338
LyondellBasell
Industries
NV
Class
A
2,417
159
Newmont
Corp.
49,627
3,064
Owens
Corning
4,178
233
Reliance
Steel
&
Aluminum
Co.
434
41
Steel
Dynamics,
Inc.
63
2
Trane
Technologies
PLC
4,862
433
20,259
Producer
Durables
-
5.9%
3M
Co.
2,193
342
Accenture
PLC
Class
A
4,196
901
AECOM(Æ)
6,434
242
Ametek
,
Inc.
5,005
447
Aptiv
PLC
1,648
128
Automatic
Data
Processing,
Inc.
3,807
567
Boeing
Co.
(The)
1,463
268
Booz
Allen
Hamilton
Holding
Corp.
Class
A
3,149
245
Carlisle
Cos.,
Inc.
3,137
375
CH
Robinson
Worldwide,
Inc.(Ñ)
3,238
256
Chart
Industries,
Inc.(Æ)
33,304
1,615
Cintas
Corp.
1,104
294
CoStar
Group,
Inc.(Æ)
672
478
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
CSX
Corp.
3,078
215
Cummins,
Inc.
3,179
551
Danaher
Corp.
4,739
838
Deere
&
Co.
930
146
Delta
Air
Lines,
Inc.
8,188
230
Eaton
Corp.
PLC
8,954
783
Emerson
Electric
Co.
3,665
227
Expeditors
International
of
Washington,
Inc.
1,184
90
FedEx
Corp.
3,636
510
Flir
Systems,
Inc.
4,588
186
General
Dynamics
Corp.
1,440
215
HD
Supply
Holdings,
Inc.(Æ)
5,959
206
HEICO
Corp.
1,206
120
Honeywell
International,
Inc.
5,092
736
Huntington
Ingalls
Industries,
Inc.
597
104
IDEX
Corp.
2,079
329
IHS
Markit
,
Ltd.(Æ)
3,232
244
Illinois
Tool
Works,
Inc.
1,625
284
Johnson
Controls
International
PLC(Æ)
18,229
622
Kansas
City
Southern
1,960
293
Keysight
Technologies,
Inc.(Æ)
918
93
L3Harris
Technologies,
Inc.
3,321
563
Lockheed
Martin
Corp.
1,215
443
Middleby
Corp.(Æ)
1,748
138
Northrop
Grumman
Corp.
932
287
Old
Dominion
Freight
Line,
Inc.
548
93
Otis
Worldwide
Corp.
3,922
223
PACCAR,
Inc.
9,069
679
Paychex,
Inc.
8,520
645
Quanta
Services,
Inc.
6,202
243
Raytheon
Co.(Æ)
14,929
920
Republic
Services,
Inc.
Class
A
3,229
265
Roper
Technologies,
Inc.
954
370
S&P
Global,
Inc.
188
62
Snap-on,
Inc.
1,486
206
Southwest
Airlines
Co.
7,581
259
Stanley
Black
&
Decker,
Inc.
719
100
Textron,
Inc.
15,416
507
Toro
Co.
(The)
2,847
189
Union
Pacific
Corp.
2,511
425
United
Airlines
Holdings,
Inc.(Æ)
2,219
77
United
Parcel
Service,
Inc.
Class
B
2,401
267
United
Rentals,
Inc.(Æ)
1,238
185
Verisk
Analytics,
Inc.
Class
A
2,323
395
Waste
Management,
Inc.
61,748
6,540
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
8
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Waters
Corp.(Æ)
790
143
Westinghouse
Air
Brake
Technologies
Corp.
1,530
88
Xerox
Holdings
Corp.
13,408
205
XPO
Logistics,
Inc.(Æ)
1,342
104
27,801
Technology
-
26.6%
Activision
Blizzard,
Inc.
2,116
161
Adobe,
Inc.(Æ)
12,576
5,474
Akamai
Technologies,
Inc.(Æ)
1,356
145
Allegion
PLC
1,360
139
Alphabet,
Inc.
Class
A(Æ)
7,657
10,857
Alphabet,
Inc.
Class
C(Æ)
894
1,264
Amdocs,
Ltd.
7,218
439
Amphenol
Corp.
Class
A
6,538
626
Ansys
,
Inc.(Æ)
640
187
Apple,
Inc.
26,776
9,767
Applied
Materials,
Inc.
6,816
412
Arista
Networks,
Inc.(Æ)
7,936
1,667
Arrow
Electronics,
Inc.(Æ)
5,107
351
Autodesk,
Inc.(Æ)
24,325
5,818
Black
Knight,
Inc.(Æ)
2,660
193
Booking
Holdings,
Inc.(Æ)
95
151
Broadcom,
Inc.
1,205
380
CACI
International,
Inc.
Class
A(Æ)
356
77
Cadence
Design
Systems,
Inc.(Æ)
3,050
293
CDW
Corp.
2,415
281
Cisco
Systems,
Inc.
27,779
1,296
Citrix
Systems,
Inc.
3,203
474
Cognizant
Technology
Solutions
Corp.
Class
A
4,227
240
Corning,
Inc.
7,541
195
Corteva
,
Inc.
Class
W
67,253
1,802
Coupa
Software,
Inc.(Æ)
19,843
5,497
Dell
Technologies,
Inc.
Class
C(Æ)
7,292
401
Dolby
Laboratories,
Inc.
Class
A
5,543
365
DXC
Technology
Co.
3,665
60
Electronic
Arts,
Inc.(Æ)
923
122
F5
Networks,
Inc.(Æ)
2,416
337
Facebook,
Inc.
Class
A(Æ)
21,418
4,863
Fortinet,
Inc.(Æ)
1,247
171
Genpact
,
Ltd.
10,959
400
Grubhub
,
Inc.(Æ)
2,448
172
Hewlett
Packard
Enterprise
Co.
Class
H
33,432
325
HP,
Inc.(Æ)
25,392
443
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Intel
Corp.
33,455
2,002
Intuit,
Inc.
1,727
512
IPG
Photonics
Corp.(Æ)
6,110
980
Jabil
Circuit,
Inc.
7,666
246
Juniper
Networks,
Inc.
20,695
473
Lam
Research
Corp.
1,205
390
Leidos
Holdings,
Inc.
3,168
297
LogMeIn,
Inc.
3,186
270
Marvell
Technology
Group,
Ltd.
36,268
1,272
Micron
Technology,
Inc.(Æ)
41,725
2,150
Microsoft
Corp.
136,837
27,847
Motorola
Solutions,
Inc.
1,828
256
NCR
Corp.(Æ)
9,340
162
NVIDIA
Corp.
3,156
1,199
ON
Semiconductor
Corp.(Æ)
10,724
213
Oracle
Corp.
9,291
514
Paycom
Software,
Inc.(Æ)
14,160
4,386
Pure
Storage,
Inc.
Class
A(Æ)
18,569
322
Salesforce.com,
Inc.(Æ)
4,323
810
ServiceNow
,
Inc.(Æ)
18,059
7,314
Skyworks
Solutions,
Inc.
1,179
151
SYNNEX
Corp.
2,413
289
Synopsys,
Inc.(Æ)
3,910
762
Take-Two
Interactive
Software,
Inc.(Æ)
2,156
301
Teradyne,
Inc.
5,072
429
Texas
Instruments,
Inc.
5,899
749
Twilio
,
Inc.
Class
A(Æ)
35,597
7,810
Tyler
Technologies,
Inc.(Æ)
267
93
Uber
Technologies,
Inc.(Æ)
220,727
6,860
VMware,
Inc.
Class
A(Æ)(Ñ)
1,967
305
Western
Digital
Corp.
4,003
177
Workday,
Inc.
Class
A(Æ)
542
102
Zynga,
Inc.
Class
A(Æ)
38,500
368
125,856
Utilities
-
3.3%
American
Electric
Power
Co.,
Inc.
1,296
103
AT&T,
Inc.
125,381
3,789
Avangrid
,
Inc.
4,903
206
CenterPoint
Energy,
Inc.
10,109
189
Consolidated
Edison,
Inc.
4,123
297
Dominion
Energy,
Inc.
1,134
92
DTE
Energy
Co.
1,968
212
Duke
Energy
Corp.
6,335
506
Evergy
,
Inc.
5,903
350
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
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
$
Eversource
Energy(Æ)
3,433
286
Exelon
Corp.
11,311
410
FirstEnergy
Corp.
36,197
1,404
International
Business
Machines
Corp.
4,227
510
National
Fuel
Gas
Co.
2,504
105
NextEra
Energy,
Inc.
1,715
412
PG&E
Corp.(Æ)(Ñ)
11,180
99
Pinnacle
West
Capital
Corp.
1,968
144
PPL
Corp.
67,949
1,756
Sempra
Energy
1,950
229
Southern
Co.
(The)
4,650
241
T-Mobile
US,
Inc.(Æ)
2,129
222
Verizon
Communications,
Inc.
65,258
3,598
Vistra
Energy
Corp.
4,895
91
WEC
Energy
Group,
Inc.(Æ)
5,587
490
15,741
Total
Common
Stocks
(cost
$370,673)
444,205
Warrants
&
Rights
-
0.0%
Bristol-Myers
Squibb
Co.(Æ)
2021 Rights
5,115
19
T-Mobile
US,
Inc.(Æ)
2020 Rights
2,129
—
Total
Warrants
&
Rights
(cost
$12)
19
Short-Term
Investments
-
5.9%
U.S.
Cash
Management
Fund(@)
27,933,659
(∞)
27,931
Total
Short-Term
Investments
(cost
$27,932)
27,931
Other
Securities
-
1.3%
U.S.
Cash
Collateral
Fund(@)(x)
6,208,845
(∞)
6,209
Total
Other
Securities
(cost
$6,209)
6,209
Total
Investments
-
101.0%
(identified
cost
$404,826)
478,364
Other
Assets
and
Liabilities,
Net
-
(1.0%)
(4,753)
Net
Assets
-
100.0%
473,611
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
U.S.
Strategic
Equity
Fund
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
S&P
500
E-Mini
Index
Futures
115
USD
17,769
09/20
263
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
263
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
$
72,481
$
—
$
—
$
—
$
72,481
15.3
Consumer
Staples
18,686
—
—
—
18,686
3.9
Energy
6,421
—
—
—
6,421
1.4
Financial
Services
85,021
—
—
—
85,021
17.9
Health
Care
71,939
—
—
—
71,939
15.2
Materials
and
Processing
20,259
—
—
—
20,259
4.3
Producer
Durables
27,801
—
—
—
27,801
5.9
Technology
125,856
—
—
—
125,856
26.6
Utilities
15,741
—
—
—
15,741
3.3
Warrants
&
Rights
19
—
—
—
19
—
*
Short-Term
Investments
—
—
—
27,931
27,931
5.9
Other
Securities
—
—
—
6,209
6,209
1.3
Total
Investments
444,224
—
—
34,140
478,364
101.0
Other
Assets
and
Liabilities,
Net
(1.0)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
263
—
—
—
263
0.1
Total
Other
Financial
Instruments
**
$
263
$
—
$
—
$
—
$
263
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
11
ts
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
263
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
3,442
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
108
*
Includes
cumulative
appreciation/depreciation
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
6,002
$
—
$
6,002
Total
Financial
and
Derivative
Assets
6,002
—
6,002
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
6,002
$
—
$
6,002
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
$
527
$
—
$
527
$
—
Barclays
1,055
—
1,055
—
Citigroup
666
—
666
—
Fidelity
563
—
563
—
JPMorgan
Chase
1,309
—
1,309
—
Merrill
Lynch
118
—
118
—
Morgan
Stanley
1,764
—
1,764
—
Total
$
6,002
$
—
$
6,002
$
—
*
Fair
value
of
securities
on
loan
as
reported
in
the
footnotes
to
the
Statement
of
Assets
and
Liabilities.
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
13
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
404,826
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
478,364
Receivables:
Dividends
and
interest
.......................................................................................................................................................
417
Dividends
from
affiliated
funds
..........................................................................................................................................
6
From
broker
(a)
...................................................................................................................................................................
1,361
Variation
margin
on
futures
contracts
.................................................................................................................................
264
Prepaid
expenses
...........................................................................................................................................................................
2
Total
assets
.................................................................................................................................................
480,414
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
202
Accrued
fees
to
affiliates
....................................................................................................................................................
305
Other
accrued
expenses
.....................................................................................................................................................
87
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
6,209
Total
liabilities
.............................................................................................................................................
6,803
Net
Assets
............................................................................................................................................................
$
473,611
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
14
U.S.
Strategic
Equity
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
54,719
Shares
of
beneficial
interest
...........................................................................................................................................................
303
Additional
paid-in
capital
..............................................................................................................................................................
418,589
Net
Assets
............................................................................................................................................................
$
473,611
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
15.64
Net
assets
...............................................................................................................................................................................
$
473,610,505
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
30,275,511
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
6,002
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
34,140
(a)
Receivable
from
Broker
for
Futures
$
1,361
(#)
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
15
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
3,690
Dividends
from
affiliated
funds
.........................................................................................................................................
102
Securities
lending
income
(net)
.........................................................................................................................................
18
Total
investment
income
...............................................................................................................................................................
3,810
Expenses
Advisory
fees
....................................................................................................................................................................
1,684
Administrative
fees
...........................................................................................................................................................
115
Custodian
fees
...................................................................................................................................................................
35
Transfer
agent
fees
............................................................................................................................................................
10
Professional
fees
...............................................................................................................................................................
53
Trustees’
fees
....................................................................................................................................................................
10
Printing
fees
......................................................................................................................................................................
32
Miscellaneous
...................................................................................................................................................................
11
Total
expenses
...............................................................................................................................................................................
1,950
Net
investment
income
(loss)
........................................................................................................................................................
1,860
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(21,590)
Investments
in
affiliated
funds
..........................................................................................................................................
(7)
Futures
contracts
..............................................................................................................................................................
3,442
Foreign
currency-related
transactions
...............................................................................................................................
2
Net
realized
gain
(loss)
..................................................................................................................................................................
(18,153)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
7,661
Futures
contracts
..............................................................................................................................................................
108
Foreign
currency-related
transactions
...............................................................................................................................
(1)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
7,768
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(10,385)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(8,525)
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
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
1,860
$
4,643
Net
realized
gain
(loss)
......................................................................................................................
(18,153)
33,02
2
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
7,768
75,71
3
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(8,525)
113,378
Distributions
To
shareholders
.................................................................................................................................
(5,569)
(30,796)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(5,569)
(30,796)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(25,657)
51,204
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(39,751)
133,786
Net
Assets
Beginning
of
period
.................................................................................................................................
513,362
379,576
End
of
period
..........................................................................................................................................
$
473,611
$
513,362
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
201
$
2,827
4,553
$
72,578
Proceeds
from
reinvestment
of
distributions
360
5,568
1,958
30,796
Payments
for
shares
redeemed
(2,315)
(34,052)
(3,413)
(52,170)
Total
increase
(decrease)
(1,754)
$
(25,657)
3,098
$
51,204
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
18
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2020(1)
16.03
.06
(.27)
(.21)
(.04)
(.14)
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
19
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.18)
15.64
(1.31)
473,611
.85
.85
.81
33
(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.
20
U.S.
Strategic
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020
,
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
$
284,173
Administration
fees
19,464
Transfer
agent
fees
1,712
$
305,349
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
$
21,735
$
77,427
$
71,224
$
(7
)
$
—
$
27,931
$
102
$
—
U.S.
Cash
Collateral
Fund
7,335
86,776
87,902
—
—
6,209
66
—
$
29,070
$
164,203
$
159,126
$
(7
)
$
—
$
34,140
$
168
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
409,371,800
$
87,633,392
$
(18,378,069)
$
69,255,323
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
U.S.
Small
Cap
Equity
Fund
21
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2020
$
819
.30
$
1,018
.60
Expenses
Paid
During
Period*
$
5
.70
$
6
.32
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.26%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
22
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
97.7%
Consumer
Discretionary
-
12.2%
Aaron's,
Inc.
Class
A
3,587
163
Adtalem
Global
Education,
Inc.(Æ)
3,515
109
American
Axle
&
Manufacturing
Holdings,
Inc.(Æ)
19,902
152
American
Eagle
Outfitters,
Inc.
11,921
130
American
Public
Education,
Inc.(Æ)
7,586
224
America's
Car-Mart,
Inc.(Æ)
6,276
551
Aspen
Group,
Inc.(Æ)
4,078
37
B.
Riley
Financial,
Inc.
39,327
856
Beazer
Homes
USA,
Inc.(Æ)
1,405
14
Bed
Bath
&
Beyond,
Inc.(Ñ)
12,865
136
Big
Lots,
Inc.
3,369
141
BJ's
Restaurants,
Inc.
14,015
293
BJ's
Wholesale
Club
Holdings,
Inc.(Æ)
1,784
66
Bloomin
'
Brands,
Inc.
4,298
46
Bluegreen
Vacations
Corp.
1,558
8
BMC
Stock
Holdings,
Inc.(Æ)(Û)
14,551
365
Boot
Barn
Holdings,
Inc.(Æ)
7,521
162
Brinker
International,
Inc.
10,069
242
Cable
One,
Inc.(Û)
187
332
Cardlytics,
Inc.(Æ)
1,086
76
Carrols
Restaurant
Group,
Inc.(Æ)
40,337
195
Cato
Corp.
(The)
Class
A
8,044
66
Cavco
Industries,
Inc.(Æ)
4,916
948
Celestica,
Inc.(Æ)
41,837
286
Central
Garden
&
Pet
Co.
Class
A(Æ)(Û)
1,591
54
Century
Communities,
Inc.(Æ)
5,070
155
Cheesecake
Factory,
Inc.
(The)(Ñ)
2,801
64
Chegg
,
Inc.(Æ)
7,935
534
Chico's
FAS,
Inc.
5,592
8
Chuy's
Holdings,
Inc.(Æ)
4,486
67
Cooper
Tire
&
Rubber
Co.
4,486
124
Cooper-Standard
Holdings,
Inc.(Æ)(Û)
3,240
43
Cracker
Barrel
Old
Country
Store,
Inc.(Ñ)
998
111
Dana
Holding
Corp.
12,369
151
Deckers
Outdoor
Corp.(Æ)
869
171
Del
Taco
Restaurants,
Inc.(Æ)
59,932
355
Delta
Apparel,
Inc.(Æ)(Ñ)
17,971
218
Denny's
Corp.(Æ)
54,173
547
Dillard's,
Inc.
Class
A(Ñ)
2,541
66
Dine
Brands
Global,
Inc.(Ð)
988
42
Domino's
Pizza,
Inc.(Ð)
871
322
El
Pollo
Loco
Holdings,
Inc.(Æ)(Ñ)
13,532
200
Entercom
Communications
Corp.
Class
A
4,723
7
EW
Scripps
Co.
(The)
Class
A
18,555
162
First
Cash
Financial
Services,
Inc.
1,207
81
Five
Below,
Inc.(Æ)
442
47
Floor
&
Decor
Holdings,
Inc.
Class
A(Æ)
919
53
Fossil
Group,
Inc.(Æ)(Ð)
8,959
42
Foundation
Building
Materials,
Inc.(Æ)
2,423
38
Full
House
Resorts,
Inc.(Æ)(Ñ)
67,647
90
GameStop
Corp.
Class
A(Æ)
7,897
34
GAN,
Ltd.(Æ)
2,189
56
Genesco,
Inc.(Æ)
10,567
229
Golden
Entertainment,
Inc.(Æ)
5,869
52
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Goodyear
Tire
&
Rubber
Co.
(The)
16,441
147
GoPro,
Inc.
Class
A(Æ)
16,101
77
Gray
Television,
Inc.(Æ)
10,986
153
Hamilton
Beach
Brands
Holding
Co.
Class
A
19,508
232
Haverty
Furniture
Cos.,
Inc.(Û)
1,724
28
HealthStream
,
Inc.(Æ)(Û)
1,560
35
Hibbett
Sports,
Inc.(Æ)
1,437
30
Hillenbrand,
Inc.
3,672
99
Hooker
Furniture
Corp.
3,900
76
Houghton
Mifflin
Harcourt
Co.(Æ)
4,512
8
iHeartMedia
,
Inc.
Class
A(Æ)(Ñ)
24,047
201
Inter
Parfums
,
Inc.
3,620
174
International
Game
Technology
PLC(Ð)
12,742
113
IntriCon
Corp.(Æ)(Ñ)
15,452
209
J
Alexander's
Holdings,
Inc.(Æ)
33,828
166
Jack
in
the
Box,
Inc.(Û)
5,897
436
John
Wiley
&
Sons,
Inc.
Class
A
5,246
205
K12,
Inc.(Æ)(Û)
7,140
195
KB
Home
3,448
106
Kontoor
Brands,
Inc.
27,633
492
La-Z-Boy,
Inc.
Class
Z
3,844
104
Liberty
Braves
Group
Class
C(Æ)
2,318
46
Lithia
Motors,
Inc.
Class
A
989
150
Lovesac
Co.
(The)(Æ)
3,011
79
Lumber
Liquidators
Holdings,
Inc.(Æ)
1,828
25
Madison
Square
Garden
Entertainment
Corp.
(Æ)
6,752
506
Madison
Square
Garden
Sports
Corp.
Class
A(Æ)(Û)
2,579
379
Marchex
,
Inc.
Class
B(Æ)
4,000
6
Marriott
Vacations
Worldwide
Corp.
6,603
543
Matthews
International
Corp.
Class
A
10,045
192
Meredith
Corp.(Ñ)
13,688
199
Meritage
Homes
Corp.(Æ)
2,774
211
Meritor,
Inc.(Æ)(Ð)
3,979
79
Monarch
Casino
&
Resort,
Inc.(Æ)
1,168
40
Motorcar
Parts
of
America,
Inc.(Æ)
2,674
47
Movado
Group,
Inc.
1,676
18
Murphy
USA,
Inc.(Æ)
1,098
124
Nautilus,
Inc.(Æ)
7,106
66
Nexstar
Media
Group,
Inc.
Class
A
1,301
109
Office
Depot,
Inc.(Ð)
39,260
92
Papa
John's
International,
Inc.
209
17
PetIQ
,
Inc.(Æ)(Ñ)
11,616
405
Planet
Fitness,
Inc.
Class
A(Æ)
956
58
Quotient
Technology,
Inc.(Æ)
7,566
55
Red
Robin
Gourmet
Burgers,
Inc.(Æ)
1,810
18
Red
Rock
Resorts,
Inc.
Class
A
2,479
27
Regis
Corp.(Æ)
3,808
31
Rent-A-Center,
Inc.
Class
A
3,634
101
REV
Group,
Inc.
3,200
20
Rosetta
Stone,
Inc.(Æ)
2,107
36
Sally
Beauty
Holdings,
Inc.(Æ)(Ñ)
7,755
97
Scholastic
Corp.
5,060
151
Scientific
Games
Corp.
Class
A(Æ)
5,165
80
SeaWorld
Entertainment,
Inc.(Æ)
7,943
118
Shoe
Carnival,
Inc.(Ñ)
1,685
49
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
23
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Signet
Jewelers,
Ltd.
2,223
23
Skyline
Champion
Corp.(Æ)
21,952
534
SMART
Global
Holdings,
Inc.(Æ)(Ñ)
11,657
317
Sonic
Automotive,
Inc.
Class
A
3,122
100
Sportsman's
Warehouse
Holdings,
Inc.(Æ)
10,516
150
Stamps.com,
Inc.(Æ)
742
136
Steven
Madden,
Ltd.
2,762
68
Sturm
Ruger
&
Co.,
Inc.
206
16
Taylor
Morrison
Home
Corp.
Class
A(Æ)
8,671
167
Tenneco,
Inc.
Class
A(Æ)(Ð)
5,511
42
Texas
Roadhouse,
Inc.
Class
A
6,798
357
Travelzoo
,
Inc.(Æ)(Û)
1,100
6
Tribune
Publishing
Co.(Æ)
1,300
13
Tupperware
Brands
Corp.(Ð)
7,103
34
Turtle
Beach
Corp.(Æ)(Ñ)
10,275
151
Twin
River
Worldwide
Holdings,
Inc.
1,552
35
Universal
Electronics,
Inc.(Æ)
1,030
48
Universal
Technical
Institute,
Inc.(Æ)
2,523
18
Vera
Bradley,
Inc.(Æ)
1,499
7
Viad
Corp.
12,354
235
Vista
Outdoor,
Inc.(Æ)
6,330
91
Visteon
Corp.(Æ)(Ð)
2,560
175
Wingstop
,
Inc.(Û)
2,520
350
Winnebago
Industries,
Inc.
1,823
121
Wolverine
World
Wide,
Inc.
48,564
1,157
WW
International,
Inc.(Æ)
3,294
84
Wyndham
Hotels
&
Resorts,
Inc.(Û)
17,083
728
Zumiez
,
Inc.(Æ)
4,347
119
22,463
Consumer
Staples
-
3.7%
Alico
,
Inc.
2,807
87
Boston
Beer
Co.,
Inc.
Class
A(Æ)
266
143
Bunge,
Ltd.(Û)
7,403
304
Coca-Cola
Bottling
Co.
274
63
Core-Mark
Holding
Co.,
Inc.
2,482
62
elf
Beauty,
Inc.(Æ)
58,023
1,106
Energizer
Holdings,
Inc.(Ñ)
20,865
991
Farmer
Brothers
Co.(Æ)
17,511
129
Fresh
Del
Monte
Produce,
Inc.
14,722
362
Grocery
Outlet
Holding
Corp.(Æ)
11,648
475
Helen
of
Troy,
Ltd.(Æ)
793
150
Herbalife
Nutrition,
Ltd.(Æ)
5,445
245
Ingles
Markets,
Inc.
Class
A
8,081
348
J&J
Snack
Foods
Corp.
1,234
157
Lifevantage
Corp.(Æ)(Ð)
2,200
30
MGP
Ingredients,
Inc.(Ñ)
7,721
283
National
Vision
Holdings,
Inc.(Æ)
2,413
74
Nomad
Foods,
Ltd.(Æ)
32,490
697
Performance
Food
Group
Co.(Æ)
4,371
127
PolyOne
Corp.
4,526
119
Post
Holdings,
Inc.(Æ)(Ð)
1,156
101
Primo
Water
Corp.
21,079
290
Quanex
Building
Products
Corp.
5,056
70
Rite
Aid
Corp.(Æ)
3,374
58
Sanderson
Farms,
Inc.
1,250
145
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
USANA
Health
Sciences,
Inc.(Æ)
2,154
158
6,774
Energy
-
2.2%
Arch
Coal,
Inc.(Æ)(Û)
4,868
138
ChampionX
Corp.(Æ)
27,317
267
Continental
Resources,
Inc.
2,875
50
Diamondback
Energy,
Inc.
3,368
141
Enphase
Energy,
Inc.(Æ)
1,857
88
EQT
Corp.
3,799
45
Exterran
Corp.(Æ)
1,428
8
Green
Brick
Partners,
Inc.(Æ)
52,946
626
Green
Plains,
Inc.(Æ)
5,658
58
Luxfer
Holdings
PLC
-
ADR
2,441
35
Magnolia
Oil
&
Gas
Corp.(Æ)
60,213
365
Matrix
Service
Co.(Æ)
36,721
357
Nabors
Industries,
Inc.(Ð)
559
21
National
Energy
Services
Reunited
Corp.(Æ)
37,386
257
Natural
Gas
Services
Group,
Inc.(Æ)
34,519
216
Newpark
Resources,
Inc.(Æ)
123,183
275
NOW,
Inc.(Æ)(Ð)
7,781
67
Oil
States
International,
Inc.(Æ)
2,824
13
Par
Pacific
Holdings,
Inc.(Æ)
7,000
63
Peabody
Energy
Corp.
6,212
18
ProPetro
Holding
Corp.(Æ)
7,904
41
REX
American
Resources
Corp.(Æ)
772
54
Select
Energy
Services,
Inc.
Class
A(Æ)
83,926
411
Solaris
Oilfield
Infrastructure,
Inc.
Class
A
11,865
88
Targa
Resources
Corp.
4,826
97
TPI
Composites,
Inc.(Æ)(Ð)
2,779
65
Warrior
Met
Coal,
Inc.
5,951
92
World
Fuel
Services
Corp.
5,860
151
4,107
Financial
Services
-
20.6%
1st
Source
Corp.
2,273
81
Agree
Realty
Corp.(ö)
2,070
136
Amalgamated
Bank
Class
A
4,289
54
American
Campus
Communities,
Inc.(Ð)(ö)
7,764
271
American
Equity
Investment
Life
Holding
Co.
9,904
244
American
National
Bankshares
,
Inc.
3,868
97
Ameris
Bancorp
16,231
383
Amerisafe
,
Inc.
1,593
97
AssetMark
Financial
Holdings,
Inc.(Æ)
1,609
44
Assurant,
Inc.
169
17
Assured
Guaranty,
Ltd.
1,210
30
Atlantic
Capital
Bancshares,
Inc.(Æ)
18,140
221
Atlantic
Union
Bankshares
Corp.(Æ)
4,147
96
Axis
Capital
Holdings,
Ltd.(Ð)
5,990
243
Axos
Financial,
Inc.(Æ)
5,368
119
Banc
of
California,
Inc.
45,152
489
BancFirst
Corp.
930
38
Bancorp,
Inc.
(The)(Æ)
3,573
35
BancorpSouth
Bank
4,824
110
Banner
Corp.
9,818
373
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
24
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Baycom
Corp.(Æ)
1,200
15
Berkshire
Hills
Bancorp,
Inc.
4,087
45
Blackstone
Mortgage
Trust,
Inc.
Class
A(Ñ)(ö)
5,917
143
Blucora
,
Inc.(Æ)
1,729
20
Bridgewater
Bancshares,
Inc.(Æ)
1,200
12
Brighthouse
Financial,
Inc.(Æ)(Û)
9,526
265
Brightsphere
Investment
Group,
Inc.
9,636
120
Brixmor
Property
Group,
Inc.(ö)
18,560
238
Business
First
Bancshares,
Inc.(Û)
300
5
Byline
Bancorp,
Inc.
20,635
270
Cadence
Bancorp
8,985
80
Camden
National
Corp.
930
32
Camden
Property
Trust(ö)(Û)
3,596
328
Cannae
Holdings,
Inc.(Æ)
13,171
541
Capital
City
Bank
Group,
Inc.
16,753
351
Capstar
Financial
Holdings,
Inc.
26,154
314
Capstead
Mortgage
Corp.(ö)
17,164
94
Carter
Bank
&
Trust
1,394
11
Cathay
General
Bancorp
4,027
106
CBTX,
Inc.
1,597
34
Century
Bancorp,
Inc.
Class
A
3,462
269
Civista
Bancshares,
Inc.
8,933
138
Coastal
Financial
Corp.(Æ)
559
8
Collectors
Universe,
Inc.
4,600
158
Columbia
Banking
System,
Inc.
3,860
109
Community
Bank
System,
Inc.
1,604
91
Community
Bankers
Trust
Corp.
10,201
56
CoreCivic
,
Inc.(Æ)
11,301
106
CorEnergy
Infrastructure
Trust,
Inc.(ö)
10,688
98
Cowen
Group,
Inc.
Class
A
21,700
351
CTO
Realty
Growth,
Inc.
6,244
246
Cullen/Frost
Bankers,
Inc.
1,461
109
Cushman
&
Wakefield
PLC(Æ)
5,511
69
CVB
Financial
Corp.
5,750
108
CyrusOne
,
Inc.(ö)
4,624
336
Deluxe
Corp.
3,135
74
DiamondRock
Hospitality
Co.(ö)
19,050
105
Diversified
Healthcare
Trust(Æ)
15,605
69
Donegal
Group,
Inc.
Class
A
100
1
Eagle
Bancorp,
Inc.
8,899
291
Easterly
Government
Properties,
Inc.(ö)
2,773
64
Ellington
Financial,
Inc.(ö)
9,444
111
Enova
International,
Inc.(Æ)
2,346
35
Equity
Commonwealth(ö)
8,355
269
Equity
LifeStyle
Properties,
Inc.
Class
A(ö)
2,687
168
Essent
Group,
Ltd.
13,960
506
Everi
Holdings,
Inc.(Æ)
15,897
82
Ezcorp
,
Inc.
Class
A(Æ)
2,504
16
Farmers
&
Merchants
Bancorp,
Inc.
3,743
80
FB
Financial
Corp.
8,170
202
Federated
Hermes,
Inc.
Class
B
4,440
105
First
BanCorp
(Û)
9,132
230
First
Community
Bankshares
,
Inc.
3,920
88
First
Financial
Corp.
427
16
First
Foundation,
Inc.
42,996
703
First
Interstate
BancSystem
,
Inc.
Class
A
9,796
303
First
Midwest
Bancorp,
Inc.
5,754
77
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
First
United
Corp.
2,893
39
Front
Yard
Residential
Corp.(Æ)(ö)
7,786
68
Fulton
Financial
Corp.
7,734
81
Gaming
and
Leisure
Properties,
Inc.(ö)(Û)
36,387
1,260
GEO
Group,
Inc.
(The)(ö)
7,434
88
Getty
Realty
Corp.(ö)
11,719
348
Glacier
Bancorp,
Inc.
3,280
116
Global
Net
Lease,
Inc.(ö)
5,110
85
Goosehead
Insurance,
Inc.
Class
A(Æ)(Ð)
620
47
Great
Southern
Bancorp,
Inc.
470
19
Great
Western
Bancorp,
Inc.
3,455
48
Green
Dot
Corp.
Class
A(Æ)
11,056
543
Guaranty
Bancshares,
Inc.(Û)
460
12
Hallmark
Financial
Services,
Inc.(Æ)
29,510
103
Hancock
Holding
Co.
4,324
92
Hanmi
Financial
Corp.
9,143
88
Hanover
Insurance
Group,
Inc.
(The)
2,639
267
HarborOne
Bancorp,
Inc.
9,333
80
HCI
Group,
Inc.(Ð)
1,210
56
Heartland
Financial
USA,
Inc.
1,657
55
Helios
Technologies,
Inc.(Æ)
2,354
88
Heritage
Commerce
Corp.
10,786
81
Heritage
Financial
Corp.
2,825
57
Heritage
Insurance
Holdings,
Inc.
400
5
Hilltop
Holdings,
Inc.
5,038
93
Home
Bancorp,
Inc.(Û)
280
7
Home
BancShares
,
Inc.
8,140
125
HomeStreet
,
Inc.
35,415
871
HomeTrust
Bancshares,
Inc.(Û)
750
12
Hope
Bancorp,
Inc.
8,861
82
Houlihan
Lokey
,
Inc.
Class
A
6,539
364
I3
Verticals,
Inc.
Class
A(Æ)
28,873
874
Iberiabank
Corp.
2,718
124
Independence
Realty
Trust,
Inc.(ö)
51,029
586
Independent
Bank
Corp.(Û)
50,962
757
Independent
Bank
Group,
Inc.
2,056
83
Industrial
Logistics
Properties
Trust(ö)
12,135
249
Innovative
Industrial
Properties,
Inc.(Ñ)(ö)
1,440
127
Investors
Bancorp,
Inc.
10,393
88
Investors
Real
Estate
Trust(ö)
7,329
517
iStar
,
Inc.(ö)
5,882
72
James
River
Group
Holdings,
Ltd.
5,558
250
JER
Investment
Trust,
Inc.(Æ)(Š)(Þ)
1,771
—
Kearny
Financial
Corp.
53,342
436
Kemper
Corp.
1,892
137
Kennedy-Wilson
Holdings,
Inc.
4,912
75
KKR
Real
Estate
Finance
Trust,
Inc.(ö)
6,196
103
LCNB
Corp.
5,558
89
LendingClub
Corp.(Æ)
10,443
48
LendingTree
,
Inc.(Æ)(Ñ)
954
276
Lexington
Realty
Trust(ö)
9,300
98
Live
Oak
Bancshares,
Inc.
1,860
27
LPL
Financial
Holdings,
Inc.(Û)
4,280
336
Macatawa
Bank
Corp.
8,632
68
Merchants
Bancorp
5,275
97
Mercury
General
Corp.(Ð)
1,767
72
Metropolitan
Bank
Holding
Corp.(Æ)
190
6
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
25
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
MGIC
Investment
Corp.
16,639
136
Moelis
&
Co.
Class
A
1,066
33
National
Bank
Holdings
Corp.
Class
A
19,260
520
National
Bankshares
,
Inc.
3,026
87
National
Health
Investors,
Inc.(ö)
1,385
84
NBT
Bancorp,
Inc.
2,833
87
New
Senior
Investment
Group,
Inc.(ö)
37,730
137
Nicolet
Bankshares
,
Inc.(Æ)
274
15
NMI
Holdings,
Inc.
Class
A(Æ)
7,741
124
Northeast
Bank
11,455
201
Northrim
BanCorp
,
Inc.
400
10
Northwest
Bancshares,
Inc.
8,889
91
OFG
Bancorp
3,834
51
Old
National
Bancorp
4,866
67
Old
Second
Bancorp,
Inc.
29,086
226
Origin
Bancorp,
Inc.
740
16
PCSB
Financial
Corp.
42,934
544
Peapack
Gladstone
Financial
Corp.
456
9
PennyMac
Financial
Services,
Inc.
2,108
88
Peoples
Bancorp,
Inc.
6,035
128
People's
Utah
Bancorp
1,150
26
Physicians
Realty
Trust(ö)
9,835
172
Piedmont
Office
Realty
Trust,
Inc.
Class
A(ö)
16,739
278
Plymouth
Industrial
REIT,
Inc.(ö)
23,894
306
Popular,
Inc.(Û)
18,941
704
Postal
Realty
Trust,
Inc.
Class
A
3,463
55
Potlatch
Corp.(ö)
25,458
969
Preferred
Bank
1,161
50
Premier
Financial
Corp.
15,649
277
Primerica,
Inc.
408
48
Protective
Insurance
Corp.
Class
B
400
6
Provident
Financial
Services,
Inc.
5,500
79
PS
Business
Parks,
Inc.(ö)
1,000
132
QCR
Holdings,
Inc.
1,020
32
QTS
Realty
Trust,
Inc.
Class
A(ö)
1,581
101
Radian
Group,
Inc.
8,933
139
RE/MAX
Holdings,
Inc.
Class
A
5,752
181
Realogy
Holdings
Corp.
24,144
179
Reinsurance
Group
of
America,
Inc.
Class
A
1,960
154
RenaissanceRe
Holdings,
Ltd.(Û)
1,664
285
Renasant
Corp.
7,905
197
Retail
Value,
Inc.(ö)
790
10
Rexford
Industrial
Realty,
Inc.(ö)
3,073
127
Riverview
Bancorp,
Inc.
17,605
99
RLJ
Lodging
Trust(ö)
12,872
122
RMR
Group,
Inc.
(The)
Class
A
1,832
54
Sabra
Health
Care
REIT,
Inc.(ö)
8,461
122
Safety
Insurance
Group,
Inc.
1,478
113
Seacoast
Banking
Corp.
of
Florida(Æ)
2,215
45
Selective
Insurance
Group,
Inc.
1,830
97
ServisFirst
Bancshares,
Inc.
2,802
100
Shore
Bancshares,
Inc.
13,127
146
Silvercrest
Asset
Management
Group,
Inc.
Class
A
20,558
261
Simmons
First
National
Corp.
Class
A
4,873
83
SITE
Centers
Corp.(ö)
55,714
452
SL
Green
Realty
Corp.(Ð)(ö)
2,550
126
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
SLM
Corp.
20,448
144
SmartFinancial
,
Inc.
1,500
24
South
State
Corp.
7,354
350
Southern
First
Bancshares,
Inc.(Æ)
2,164
60
Southern
National
Bancorp
of
Virginia,
Inc.
5,716
55
SP
Plus
Corp.(Æ)
6,509
135
Spirit
of
Texas
Bancshares,
Inc.(Æ)
756
9
Spirit
Realty
Capital,
Inc.(ö)
5,468
191
STAG
Industrial,
Inc.(ö)
6,014
176
Stewart
Information
Services
Corp.
10,065
327
Stifel
Financial
Corp.
3,007
143
Sunstone
Hotel
Investors,
Inc.(ö)
14,074
115
Tanger
Factory
Outlet
Centers,
Inc.(Ñ)(ö)
13,552
97
Terreno
Realty
Corp.(ö)
2,772
146
Texas
Capital
Bancshares,
Inc.(Æ)(Û)
4,883
151
Timberland
Bancorp,
Inc.
5,994
109
Tiptree
Financial,
Inc.
Class
A
37,691
243
TriCo
Bancshares
3,480
106
TriState
Capital
Holdings,
Inc.(Æ)
484
8
Triumph
Bancorp,
Inc.(Æ)
8,034
195
Trustmark
Corp.
4,332
106
UMB
Financial
Corp.
2,293
118
UMH
Properties,
Inc.(ö)
52,809
683
United
Bankshares
,
Inc.
4,497
124
United
Community
Banks,
Inc.
8,721
175
United
Insurance
Holdings
Corp.
4,300
34
Universal
Insurance
Holdings,
Inc.
6,231
111
Valley
National
Bancorp
13,286
104
Velocity
Financial,
Inc.(Æ)
14,427
57
Veritex
Holdings,
Inc.
10,862
192
Virtu
Financial,
Inc.
Class
A
1,301
31
Voya
Financial,
Inc.(Û)
5,652
264
Waddell
&
Reed
Financial,
Inc.
Class
A(Ð)
19,300
299
Walker
&
Dunlop,
Inc.
2,370
120
Washington
Federal,
Inc.
4,143
111
Washington
Prime
Group,
Inc.(Ñ)(ö)
150,919
127
Washington
Trust
Bancorp,
Inc.
7,151
234
Watford
Holdings,
Ltd.(Æ)
1,424
24
Webster
Financial
Corp.
5,292
151
Western
Alliance
Bancorp
1,016
38
WSFS
Financial
Corp.
3,481
100
Xenia
Hotels
&
Resorts,
Inc.(ö)
8,662
81
37,973
Health
Care
-
16.5%
Acadia
Pharmaceuticals,
Inc.(Æ)
1,550
75
Acceleron
Pharma,
Inc.(Æ)
2,050
195
Accuray
,
Inc.(Æ)
107,831
219
Adverum
Biotechnologies,
Inc.(Æ)(Ð)
1,424
30
Aimmune
Therapeutics,
Inc.(Æ)
2,314
39
Akebia
Therapeutics,
Inc.(Æ)(Ð)
5,960
81
Akero
Therapeutics,
Inc.(Æ)
729
18
Aldeyra
Therapeutics,
Inc.(Æ)
3,000
13
Alector
,
Inc.(Æ)
5,236
128
Alkermes
PLC(Æ)
12,989
252
Allscripts
Healthcare
Solutions,
Inc.(Æ)
23,400
158
Alphatec
Holdings,
Inc.(Æ)
28,232
133
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
26
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
AMAG
Pharmaceuticals,
Inc.(Æ)(Ð)
9,500
73
Amedisys
,
Inc.(Æ)
870
173
Amicus
Therapeutics,
Inc.(Æ)
15,854
239
AMN
Healthcare
Services,
Inc.(Æ)
2,073
94
ANI
Pharmaceuticals,
Inc.(Æ)
6,920
224
Anika
Therapeutics,
Inc.(Æ)
4,123
156
Apellis
Pharmaceuticals,
Inc.(Æ)
3,752
123
Applied
Genetic
Technologies
Corp.(Æ)(Ð)
3,589
20
Aptinyx
,
Inc.(Æ)
2,500
10
Arrowhead
Pharmaceuticals,
Inc.(Æ)
4,483
194
Assertio
Holdings,
Inc.(Æ)
15,227
13
Atara
Biotherapeutics
,
Inc.(Æ)(Ð)
1,214
18
Avantor
,
Inc.(Æ)
3,565
61
Axsome
Therapeutics,
Inc.(Æ)
1,133
93
BioDelivery
Sciences
International,
Inc.(Æ)
23,504
102
Biohaven
Pharmaceutical
Holding
Co.,
Ltd.
(Æ)
5,216
382
BioLife
Solutions,
Inc.(Æ)(Ñ)
52,351
855
BioNTech
SE
-
ADR(Æ)
1,233
82
BioSpecifics
Technologies
Corp.(Æ)
7,112
436
BioTelemetry
,
Inc.(Æ)
16,997
767
Bluebird
Bio,
Inc.(Æ)(Ð)
2,680
164
Blueprint
Medicines
Corp.(Æ)
3,243
253
BridgeBio
Pharma,
Inc.(Æ)(Ñ)
3,807
124
Cara
Therapeutics,
Inc.(Æ)(Ð)
1,046
18
Cardiovascular
Systems,
Inc.(Æ)
2,214
70
Castlight
Health,
Inc.
Class
B(Æ)
12,722
11
Cellular
Biomedicine
Group,
Inc.(Æ)(Ñ)
9,165
137
ChemoCentryx
,
Inc.(Æ)
2,169
125
Chimerix
,
Inc.(Æ)(Ð)
2,316
7
Coherus
Biosciences,
Inc.(Æ)(Ð)
2,981
53
Computer
Programs
&
Systems,
Inc.
3,050
70
Concert
Pharmaceuticals,
Inc.(Æ)(Ð)
3,200
32
CONMED
Corp.
3,976
286
Corbus
Pharmaceuticals
Holdings,
Inc.(Æ)(Ñ)
20,661
173
Corcept
Therapeutics,
Inc.(Æ)(Ð)
6,753
114
CorVel
Corp.(Æ)
5,090
361
Cross
Country
Healthcare,
Inc.(Æ)
2,100
13
CryoLife
,
Inc.(Æ)
6,185
119
Cyclerion
Therapeutics,
Inc.(Æ)
2,800
17
Cytokinetics,
Inc.(Æ)
2,397
56
CytomX
Therapeutics,
Inc.(Æ)
4,282
36
Denali
Therapeutics,
Inc.(Æ)
6,020
146
Dicerna
Pharmaceuticals,
Inc.(Æ)
6,088
154
Eagle
Pharmaceuticals,
Inc.(Æ)
3,408
164
Editas
Medicine,
Inc.(Æ)
6,856
203
Eidos
Therapeutics,
Inc.(Æ)(Ñ)
2,765
132
Eiger
BioPharmaceuticals
,
Inc.(Æ)(Ð)
900
9
Enanta
Pharmaceuticals,
Inc.(Æ)
5,326
268
Endo
International
PLC(Æ)(Ð)
7,754
27
Ensign
Group,
Inc.
(The)
11,509
482
Envista
Holdings
Corp.(Æ)
2,602
55
Epizyme
,
Inc.(Æ)
5,975
96
Esperion
Therapeutics,
Inc.(Æ)(Ñ)
3,558
182
Evofem
Biosciences,
Inc.(Æ)
5,006
14
Exelixis
,
Inc.(Æ)
794
19
Fate
Therapeutics,
Inc.(Æ)
5,615
193
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
FibroGen
,
Inc.(Æ)
4,252
172
Fluidigm
Corp.(Æ)
10,848
44
Frequency
Therapeutics,
Inc.(Æ)(Ñ)
7,424
173
Fulgent
Genetics,
Inc.(Æ)(Ñ)
39,475
631
GenMark
Diagnostics,
Inc.(Æ)
8,988
132
Global
Blood
Therapeutics,
Inc.(Æ)(Ñ)
2,741
173
Gossamer
Bio,
Inc.(Æ)(Ð)
3,485
45
Gritstone
Oncology,
Inc.(Æ)(Ñ)
23,485
156
Haemonetics
Corp.(Æ)
799
72
Halozyme
Therapeutics,
Inc.(Æ)
9,580
257
Heron
Therapeutics,
Inc.(Æ)(Ñ)
8,669
128
Heska
Corp.(Æ)(Ñ)
8,174
761
HMS
Holdings
Corp.(Æ)
4,134
134
Homology
Medicines,
Inc.(Æ)
1,586
24
iCAD
,
Inc.(Æ)
6,141
61
ICU
Medical,
Inc.(Æ)
1,680
310
ImmunoGen
,
Inc.(Æ)
1,541
7
Immunomedics
,
Inc.(Æ)
6,745
239
Infinity
Pharmaceuticals,
Inc.(Æ)
1,300
1
Insmed
,
Inc.(Æ)
5,400
149
Inspire
Medical
Systems,
Inc.(Æ)(Ð)
824
72
Integer
Holdings
Corp.(Æ)
3,433
251
Intercept
Pharmaceuticals,
Inc.(Æ)
2,855
137
Intersect
ENT,
Inc.(Æ)
2,173
29
Invacare
Corp.
33,407
213
Ionis
Pharmaceuticals,
Inc.(Æ)(Ð)
2,916
172
Iovance
Biotherapeutics
,
Inc.(Æ)
5,500
151
iRadimed
Corp.(Æ)
26,116
605
Jazz
Pharmaceuticals
PLC(Æ)
1,180
130
Lannett
Co.,
Inc.(Æ)(Ð)
1,270
9
Lantheus
Holdings,
Inc.(Æ)(Ð)
560
8
LeMaitre
Vascular,
Inc.
20,166
532
LHC
Group,
Inc.(Æ)
2,243
391
LivaNova
PLC(Æ)
2,950
142
Livongo
Health,
Inc.(Æ)(Ñ)
1,897
143
MacroGenics
,
Inc.(Æ)(Ð)
3,126
87
Magellan
Health,
Inc.(Æ)
2,240
163
Medpace
Holdings,
Inc.(Æ)
5,315
494
Menlo
Therapeutics,
Inc.(Æ)
1,770
3
Meridian
Bioscience,
Inc.(Æ)
5,200
121
Merit
Medical
Systems,
Inc.(Æ)(Ð)
2,847
130
Minerva
Neurosciences,
Inc.(Æ)
2,000
7
Mirati
Therapeutics,
Inc.(Æ)
1,846
211
Molina
Healthcare,
Inc.(Æ)(Û)
2,078
370
Momenta
Pharmaceuticals,
Inc.(Æ)
1,598
53
MyoKardia
,
Inc.(Æ)
1,221
118
Myriad
Genetics,
Inc.(Æ)
14,628
166
Natera
,
Inc.(Æ)
3,519
175
Natus
Medical,
Inc.(Æ)
2,245
49
Nektar
Therapeutics(Æ)
1,704
39
Neogen
Corp.(Æ)
4,884
379
NeoGenomics
,
Inc.(Æ)
15,453
479
NextGen
Healthcare,
Inc.(Æ)
5,804
64
NGM
Biopharmaceuticals,
Inc.(Æ)
1,644
32
Novocure
,
Ltd.(Æ)
2,230
132
Odonate
Therapeutics,
Inc.(Æ)
1,024
43
Omnicell
,
Inc.(Æ)
2,257
159
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
27
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Option
Care
Health,
Inc.(Æ)
2,736
38
Orthofix
Medical,
Inc.(Æ)
2,580
83
Owens
&
Minor,
Inc.
8,500
65
Oxford
Immunotec
Global
PLC(Æ)
6,403
83
Pacira
BioSciences
,
Inc.(Æ)(Ð)
2,509
132
Patterson
Cos.,
Inc.
8,029
177
PDL
BioPharma
,
Inc.(Æ)
43,190
126
Pennant
Group,
Inc.
(The)(Æ)
24,019
543
Personalis
,
Inc.(Æ)
100
1
Pfenex
,
Inc.(Æ)(Ð)
1,815
15
PRA
Health
Sciences,
Inc.(Æ)
3,028
295
Prestige
Brands
Holdings,
Inc.(Æ)
20,071
753
Principia
Biopharma,
Inc.(Æ)
1,596
95
Progenics
Pharmaceuticals,
Inc.(Æ)(Ð)(Š)
1,808
—
Prothena
Corp.
PLC(Æ)(Ð)
3,700
39
Providence
Service
Corp.
(The)(Æ)
1,268
100
PTC
Therapeutics,
Inc.(Æ)
4,544
231
Quidel
Corp.(Æ)
1,407
315
R1
RCM,
Inc.(Æ)
9,788
109
Radius
Health,
Inc.(Æ)(Ð)
5,394
74
RadNet
,
Inc.(Æ)
39,192
621
Reata
Pharmaceuticals,
Inc.
Class
A(Æ)
717
112
Recro
Pharma,
Inc.(Æ)
11,184
51
Repligen
Corp.(Æ)
5,007
618
Retrophin
,
Inc.(Æ)(Ð)
5,403
110
Rigel
Pharmaceuticals,
Inc.(Æ)(Ð)
4,211
8
Rubius
Therapeutics,
Inc.(Æ)
1,700
10
Sage
Therapeutics,
Inc.(Æ)(Ð)
1,435
60
Sangamo
BioSciences
,
Inc.(Æ)
13,346
120
Select
Medical
Holdings
Corp.(Æ)
6,267
92
Seres
Therapeutics,
Inc.(Æ)(Ð)
4,000
19
Spectrum
Pharmaceuticals,
Inc.(Æ)(Ð)
6,234
21
Spero
Therapeutics,
Inc.(Æ)(Ð)
278
4
Stemline
Therapeutics,
Inc.(Æ)(Ñ)(Š)
14,060
5
Strongbridge
Biopharma
PLC(Æ)(Ð)
2,700
10
Supernus
Pharmaceuticals,
Inc.(Æ)
6,467
153
Surmodics
,
Inc.(Æ)
550
24
Sutro
Biopharma,
Inc.(Æ)(Ð)
1,000
8
Syndax
Pharmaceuticals,
Inc.(Æ)
8,777
130
Syneos
Health,
Inc.
Class
A(Æ)
3,213
187
Tabula
Rasa
HealthCare,
Inc.(Æ)(Ñ)
17,563
960
Tactile
Systems
Technology,
Inc.(Æ)(Ñ)
13,110
543
Tandem
Diabetes
Care,
Inc.(Æ)
976
97
Teladoc
Health,
Inc.(Æ)(Ñ)
1,598
305
Tenet
Healthcare
Corp.(Æ)
12,039
218
Theravance
Biopharma,
Inc.(Æ)(Ð)
3,568
75
Tricida
,
Inc.(Æ)
1,519
42
Triple-S
Management
Corp.
Class
B(Æ)
6,941
132
Twist
Bioscience
Corp.(Æ)
3,118
141
Ultragenyx
Pharmaceutical,
Inc.(Æ)(Ñ)
2,787
218
United
Therapeutics
Corp.(Æ)(Û)
2,881
349
UNITY
Biotechnology,
Inc.(Æ)
3,300
29
Utah
Medical
Products,
Inc.
11,270
998
Varex
Imaging
Corp.(Æ)(Ð)
4,365
66
Veracyte
,
Inc.(Æ)
4,906
127
Vir
Biotechnology,
Inc.(Æ)(Ñ)
3,354
137
WaVe
Life
Sciences,
Ltd.(Æ)(Ð)
1,914
20
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
XBiotech
,
Inc.(Æ)(Ñ)
8,118
111
Xencor
,
Inc.(Æ)
3,816
124
Zogenix
,
Inc.(Æ)
748
20
30,316
Materials
and
Processing
-
7.3%
AdvanSix
,
Inc.(Æ)
18,848
221
Allegheny
Technologies,
Inc.(Æ)
8,932
91
American
Woodmark
Corp.(Æ)
1,783
135
Apogee
Enterprises,
Inc.
3,813
88
Armstrong
Flooring,
Inc.(Æ)(Ð)(Û)
5,700
17
Ashland
Global
Holdings,
Inc.(Ð)
4,179
289
Aspen
Aerogels,
Inc.(Æ)
15,887
105
Atkore
International
Group,
Inc.(Æ)
3,109
85
Axalta
Coating
Systems,
Ltd.(Æ)
2,928
66
Balchem
Corp.
1,809
172
Beacon
Roofing
Supply,
Inc.(Æ)
10,190
269
Boise
Cascade
Co.
3,870
146
Builders
FirstSource
,
Inc.(Æ)
4,714
98
Cabot
Corp.
3,528
131
Cabot
Microelectronics
Corp.
2,261
315
Caesarstone
,
Ltd.
12,818
152
Carpenter
Technology
Corp.
7,164
174
CF
Industries
Holdings,
Inc.
5,020
141
Chemours
Co.
(The)
8,243
127
Clearwater
Paper
Corp.(Æ)
5,902
213
Comfort
Systems
USA,
Inc.
8,988
366
Commercial
Metals
Co.
7,730
158
Eagle
Materials,
Inc.
9,424
662
Element
Solutions,
Inc.(Æ)
88,094
956
Enerpac
Tool
Group
Corp.
4,164
73
Fortuna
Silver
Mines,
Inc.(Æ)
9,372
48
Haynes
International,
Inc.
2,961
69
Huntsman
Corp.
13,710
246
Ingevity
Corp.(Æ)
5,205
274
Innospec
,
Inc.
1,670
129
Installed
Building
Products,
Inc.(Æ)
1,155
79
Insteel
Industries,
Inc.
10,349
197
Intrepid
Potash,
Inc.(Æ)
65,688
65
KAR
Auction
Services,
Inc.
8,471
117
Kraton
Corp.(Æ)(Ð)
2,300
40
Landec
Corp.(Æ)
55,637
443
LB
Foster
Co.
Class
A(Æ)
400
5
LiqTech
International,
Inc.(Æ)(Ñ)
71,860
392
Louisiana-Pacific
Corp.
15,537
398
Masonite
International
Corp.(Æ)(Û)
2,940
229
Mosaic
Co.
(The)
7,217
90
MRC
Global,
Inc.(Æ)
10,134
60
Mueller
Industries,
Inc.
5,379
143
O-I
Glass,
Inc.
Class
I
21,961
197
Olympic
Steel,
Inc.
824
10
Omega
Flex,
Inc.
4,560
482
Orion
Engineered
Carbons
SA
2,897
31
Patrick
Industries,
Inc.
2,239
137
PGT
Innovations,
Inc.(Æ)
9,986
157
PH
Glatfelter
Co.
3,188
51
Quaker
Chemical
Corp.(Ñ)
885
164
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
28
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Rayonier
Advanced
Materials,
Inc.(Æ)(Ð)
3,115
9
RBC
Bearings,
Inc.(Æ)
950
127
Resideo
Technologies,
Inc.(Æ)
8,783
103
Ryerson
Holding
Corp.(Æ)
1,710
10
Schnitzer
Steel
Industries,
Inc.
Class
A
5,300
93
Schweitzer-Mauduit
International,
Inc.
33,885
1,131
SiteOne
Landscape
Supply,
Inc.(Æ)(Ñ)
2,696
307
Stepan
Co.
2,300
223
TimkenSteel
Corp.(Æ)
5,100
20
Trex
Co.,
Inc.(Æ)
495
64
Trinseo
SA
3,220
71
Tronox
Holdings
PLC
Class
A
24,210
175
UFP
Industries,
Inc.(Æ)
2,434
121
Unifi,
Inc.(Æ)(Ð)
2,844
37
Universal
Stainless
&
Alloy
Products,
Inc.(Æ)
25,145
216
Valvoline,
Inc.
47,068
910
Veritiv
Corp.(Æ)
900
15
Verso
Corp.
Class
A
900
11
Worthington
Industries,
Inc.
3,164
118
WR
Grace
&
Co.
2,367
120
13,384
Producer
Durables
-
15.8%
ACCO
Brands
Corp.
65,789
467
Adient
PLC(Æ)(Ð)
7,363
121
Aerojet
Rocketdyne
Holdings,
Inc.(Æ)
1,362
54
AGCO
Corp.(Û)
4,250
236
Air
Transport
Services
Group,
Inc.(Æ)
25,857
576
Alamo
Group,
Inc.
363
37
Alaska
Air
Group,
Inc.
7,391
268
Albany
International
Corp.
Class
A
2,433
143
Allied
Motion
Technologies,
Inc.
10,606
375
Alta
Equipment
Group
Inc.(Æ)(Ñ)
59,054
459
Applied
Industrial
Technologies,
Inc.
1,942
121
ArcBest
Corp.
4,710
125
Arcosa
,
Inc.
21,179
894
Ardmore
Shipping
Corp.
70,128
304
Argan
,
Inc.
11,908
564
ASGN,
Inc.(Æ)
2,869
191
Astec
Industries,
Inc.
549
25
Astronics
Corp.(Æ)
4,021
42
AstroNova
,
Inc.
17,116
136
Axon
Enterprise,
Inc.(Æ)
3,243
318
Babcock
&
Wilcox
Co.
(The)
Class
W(Æ)
8,889
503
Barnes
Group,
Inc.
1,439
57
Barrett
Business
Services,
Inc.
830
44
Briggs
&
Stratton
Corp.
7,100
9
Brink's
Co.
(The)
9,346
425
CAI
International,
Inc.(Æ)
509
8
Chart
Industries,
Inc.(Æ)
1,331
65
Clean
Harbors,
Inc.(Æ)
2,481
149
Commercial
Vehicle
Group,
Inc.(Æ)
2,637
8
Construction
Partners,
Inc.
Class
A(Æ)
5,374
95
Covenant
Transportation
Group,
Inc.
Class
A(Æ)
17,187
248
CRA
International,
Inc.
16,826
665
Cubic
Corp.
1,775
85
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
CyberOptics
Corp.(Æ)
1,419
46
Dorian
LPG,
Ltd.(Æ)
3,170
25
Ducommun,
Inc.(Æ)
1,409
49
DXP
Enterprises,
Inc.(Æ)
1,176
23
Echo
Global
Logistics,
Inc.(Æ)
16,623
359
EMCOR
Group,
Inc.(Û)
4,710
312
Energy
Recovery,
Inc.(Æ)(Ð)
705
5
EnerSys
2,049
132
Euronav
NV
15,152
123
Evo
Payments,
Inc.
Class
A(Æ)
24,726
564
Evoqua
Water
Technologies
Corp.(Æ)
1,064
20
ExlService
Holdings,
Inc.(Æ)
1,092
69
Exponent,
Inc.
2,242
181
Franklin
Electric
Co.,
Inc.
2,851
150
frontdoor
,
Inc.(Æ)(Û)
28,676
1,272
FTI
Consulting,
Inc.(Æ)
1,422
163
Garrett
Motion,
Inc.(Æ)
8,100
45
Gates
Industrial
Corp.
PLC(Æ)
6,379
66
Generac
Holdings,
Inc.(Æ)
1,272
155
GP
Strategies
Corp.(Æ)
11,341
97
Great
Lakes
Dredge
&
Dock
Corp.(Æ)
70,582
654
Greenbrier
Cos.,
Inc.
4,705
107
Hackett
Group,
Inc.
(The)
9,941
135
Harsco
Corp.(Æ)
15,821
214
Hawaiian
Holdings,
Inc.
7,197
101
Hertz
Global
Holdings,
Inc.
Class
W(Æ)
2,625
81
HNI
Corp.
5,200
159
Howmet
Aerospace,
Inc.
1,326
21
Hub
Group,
Inc.
Class
A(Æ)
2,580
123
Hudson,
Ltd.
Class
A(Æ)
76,382
372
Hyster
-Yale
Materials
Handling,
Inc.
2,030
78
ICF
International,
Inc.
8,263
536
Insperity
,
Inc.
3,545
229
International
Seaways,
Inc.
8,513
139
Itron
,
Inc.(Æ)
684
45
JetBlue
Airways
Corp.(Æ)
13,353
146
Kaman
Corp.
Class
A
1,297
54
KBR,
Inc.
19,591
442
Kennametal,
Inc.
6,657
191
Kforce
,
Inc.
1,430
42
Kimball
International,
Inc.
Class
B
23,296
269
Korn
Ferry(Û)
4,986
153
Kornit
Digital,
Ltd.(Æ)
1,536
82
Kratos
Defense
&
Security
Solutions,
Inc.(Æ)
22,897
358
Landstar
System,
Inc.
1,014
114
LCI
Industries
1,391
160
Liquidity
Services,
Inc.(Æ)
40,156
239
Lydall
,
Inc.(Æ)
9,991
135
Manitowoc
Co.,
Inc.
(The)(Æ)
4,800
52
ManpowerGroup
,
Inc.(Û)
3,885
267
Marten
Transport,
Ltd.
9,119
229
MasTec
,
Inc.(Æ)(Ñ)
6,391
287
MAXIMUS,
Inc.
6,650
468
Mesa
Laboratories,
Inc.(Ñ)
4,454
967
Methode
Electronics,
Inc.
3,314
104
Miller
Industries,
Inc.
4,800
143
Mitek
Systems,
Inc.(Æ)
1,100
11
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
29
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Modine
Manufacturing
Co.(Æ)
5,024
28
MSA
Safety,
Inc.
877
100
MTS
Systems
Corp.
2,809
49
MYR
Group,
Inc.(Æ)
4,186
133
Orion
Group
Holdings,
Inc.(Æ)
26,930
85
Park-Ohio
Holdings
Corp.
300
5
Pentair
PLC
892
34
Pitney
Bowes,
Inc.(Ñ)(Û)
59,201
154
Powell
Industries,
Inc.
738
20
Preformed
Line
Products
Co.
1,575
79
Primoris
Services
Corp.
7,165
128
Proto
Labs,
Inc.(Æ)
1,326
149
Quanta
Services,
Inc.(Û)
6,149
241
Radiant
Logistics,
Inc.(Æ)
57,155
225
Repay
Holdings
Corp.(Æ)
7,450
183
Ryder
System,
Inc.
3,240
122
Saia,
Inc.(Æ)
2,585
287
SHYFT
Group,
Inc.
(The)(Æ)
21,492
362
SkyWest,
Inc.
7,439
243
Smith
&
Wesson
Brands,
Inc.(Æ)
11,184
241
Spirit
AeroSystems
,
Inc.
Class
A
2,270
54
Spirit
Airlines,
Inc.(Æ)(Ñ)
7,887
140
Standex
International
Corp.
2,233
129
StealthGas
,
Inc.(Æ)
108,183
301
Steelcase,
Inc.
Class
A
7,992
96
Sykes
Enterprises,
Inc.(Æ)
2,750
76
Teekay
Tankers,
Ltd.
Class
A(Æ)(Ñ)
20,299
260
Terex
Corp.
5,260
99
Tetra
Tech,
Inc.
1,315
104
Titan
Machinery,
Inc.(Æ)
8,023
87
TopBuild
Corp.(Æ)
4,299
489
TreeHouse
Foods,
Inc.(Æ)
23,280
1,021
TriNet
Group,
Inc.(Æ)
4,989
304
Triumph
Group,
Inc.
7,720
70
TrueBlue
,
Inc.(Æ)
10,320
158
Tutor
Perini
Corp.(Æ)
24,344
296
Ultralife
Corp.(Æ)
49,572
347
UniFirst
Corp.
621
111
Universal
Truckload
Services,
Inc.
15,220
265
US
Xpress
Enterprises,
Inc.
Class
A(Æ)
19,351
116
USA
Truck,
Inc.(Æ)
13,012
101
Vectrus
,
Inc.(Æ)
11,148
547
Vishay
Precision
Group,
Inc.(Æ)
3,625
89
Watts
Water
Technologies,
Inc.
Class
A
1,452
118
Werner
Enterprises,
Inc.
2,525
110
WESCO
International,
Inc.(Æ)
4,897
172
Whole
Earth
Brands,
Inc.(Æ)
4,260
34
WNS
Holdings,
Ltd.
-
ADR(Æ)
11,071
609
Xerox
Holdings
Corp.
10,758
164
XPO
Logistics,
Inc.(Æ)
850
66
YRC
Worldwide,
Inc.(Æ)(Ñ)
50,904
94
29,075
Technology
-
15.8%
A10
Networks,
Inc.(Æ)
4,846
33
ADTRAN,
Inc.
6,300
69
Agilysys
,
Inc.(Æ)
2,471
44
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Allot
Communications,
Ltd.(Æ)
14,997
157
Alpha
&
Omega
Semiconductor,
Ltd.(Æ)
26,126
285
Ambarella
,
Inc.(Æ)
2,909
133
American
Software,
Inc.
Class
A
30,359
479
Amkor
Technology,
Inc.(Æ)
4,742
58
APi
Group
Corp.(Æ)(Ñ)(Þ)
76,482
928
Appfolio
,
Inc.
Class
A(Æ)(Ñ)
947
154
Arlo
Technologies,
Inc.(Æ)
19,900
51
Arrow
Electronics,
Inc.(Æ)(Û)
4,342
298
Asure
Software,
Inc.(Æ)
10,693
69
Avaya
Holdings
Corp.(Æ)
10,294
127
Avid
Technology,
Inc.(Æ)
4,200
31
Avnet,
Inc.
5,839
163
Axcelis
Technologies,
Inc.(Æ)
19,845
552
Bandwidth,
Inc.
Class
A(Æ)(Ñ)
1,623
206
Bel
Fuse,
Inc.
Class
B
2,045
22
Benchmark
Electronics,
Inc.(Û)
12,832
277
Benefitfocus
,
Inc.(Æ)
1,349
15
Box,
Inc.
Class
A(Æ)
33,417
693
Brightcove
,
Inc.(Æ)
2,923
23
CACI
International,
Inc.
Class
A(Æ)
206
45
CalAmp
Corp.(Æ)
2,728
22
Calix,
Inc.(Æ)
6,600
98
Cardtronics
PLC
Class
A(Æ)
749
18
Casa
Systems,
Inc.(Æ)
4,140
17
Cerence
,
Inc.(Æ)(Ñ)
15,426
630
Ceridian
HCM
Holding,
Inc.(Æ)(Û)
3,884
308
ChannelAdvisor
Corp.(Æ)
1,500
24
Cirrus
Logic,
Inc.(Æ)(Û)
6,331
391
Cloudera,
Inc.(Æ)
12,919
164
CommScope
Holding
Co.,
Inc.(Æ)
15,535
129
CommVault
Systems,
Inc.(Æ)
3,670
142
comScore,
Inc.(Æ)(Ð)
9,300
29
Comtech
Telecommunications
Corp.
9,828
166
Conduent
,
Inc.(Æ)
19,421
46
Cornerstone
OnDemand
,
Inc.(Æ)
4,817
186
DASAN
Zhone
Solutions,
Inc.(Æ)
1,900
17
Diebold
Nixdorf,
Inc.(Æ)
43,501
264
Digimarc
Corp.(Æ)
2,506
40
Digital
Turbine,
Inc.(Æ)
60,565
762
Diodes,
Inc.(Æ)
745
38
Domo,
Inc.
Class
B(Æ)(Ð)
589
19
DSP
Group,
Inc.(Æ)
9,193
146
EMCORE
Corp.(Æ)(Û)
3,700
12
Endava
PLC
-
ADR(Æ)
4,932
238
Endurance
International
Group
Holdings,
Inc.(Æ)
8,277
33
Extreme
Networks,
Inc.(Æ)
14,110
61
F5
Networks,
Inc.(Æ)
360
50
Fabrinet
(Æ)
1,692
106
FireEye,
Inc.(Æ)
18,348
223
Five9,
Inc.(Æ)
585
65
Glu
Mobile,
Inc.(Æ)
9,917
92
Groupon,
Inc.(Æ)
1,599
29
Harmonic,
Inc.(Æ)(Ð)
1,824
9
HC2
Holdings,
Inc.(Æ)
2,200
7
Ichor
Holdings,
Ltd.(Æ)
2,207
59
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
30
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Infinera
Corp.(Æ)(Ð)
17,493
104
Inphi
Corp.(Æ)
956
112
Insight
Enterprises,
Inc.(Æ)
2,091
103
InterDigital
,
Inc.
1,727
98
Intevac,
Inc.(Æ)
300
2
iRobot
Corp.(Æ)(Ñ)
3,578
301
Juniper
Networks,
Inc.(Û)
5,939
136
Kimball
Electronics,
Inc.(Æ)
30,168
408
Kulicke
&
Soffa
Industries,
Inc.
23,789
495
Liberty
Latin
America,
Ltd.
Class
C(Æ)
17,141
162
Lumentum
Holdings,
Inc.
Class
E(Æ)
1,619
132
MACOM
Technology
Solutions
Holdings,
Inc.(Æ)
2,960
102
Magnachip
Semiconductor
Corp.(Æ)
6,249
64
Maxar
Technologies,
Inc.(Ñ)
44,038
791
MaxLinear
,
Inc.
Class
A(Æ)
3,777
81
Mercury
Systems,
Inc.(Æ)
5,423
427
MicroStrategy
,
Inc.
Class
A(Æ)
1,952
231
Mimecast,
Ltd.(Æ)
10,983
458
MiX
Telematics,
Ltd.
-
ADR
7,973
69
MobileIron
,
Inc.(Æ)
17,400
86
Model
N,
Inc.(Æ)
8,871
308
NAPCO
Security
Technologies,
Inc.(Æ)(Ñ)
35,652
834
NeoPhotonics
Corp.(Æ)
29,841
265
NETGEAR,
Inc.(Æ)(Ð)
8,341
216
NetScout
Systems,
Inc.(Æ)(Û)
14,371
368
New
Relic,
Inc.(Æ)
4,171
287
nLight
,
Inc.(Æ)
39,025
868
Nuance
Communications,
Inc.(Æ)(Ð)
11,100
281
NVE
Corp.
5,983
370
OneSpan
,
Inc.(Æ)
50,107
1,398
Ooma
,
Inc.(Æ)
19,900
328
PC
Connection,
Inc.
1,489
69
PCTEL,
Inc.(Æ)
15,004
100
PDF
Solutions,
Inc.(Æ)
18,174
355
Pegasystems
,
Inc.
7,315
740
Perspecta
,
Inc.
15,504
360
Plantronics,
Inc.(Ð)
3,825
56
PlayAGS
,
Inc.(Æ)
4,500
15
Plexus
Corp.(Æ)
1,214
86
Power
Integrations,
Inc.
1,160
137
Pure
Storage,
Inc.
Class
A(Æ)(Û)
22,497
390
Q2
Holdings,
Inc.(Æ)
695
60
QAD,
Inc.
Class
A
16,800
694
Qualys
,
Inc.(Æ)(Ñ)
4,250
442
RADCOM,
Ltd.(Æ)
11,465
93
Rambus,
Inc.(Æ)
7,210
110
Rapid7,
Inc.(Æ)
4,376
223
Ribbon
Communications,
Inc.(Æ)
12,441
49
Rogers
Corp.(Æ)
460
57
Sanmina
Corp.(Æ)
3,561
89
ScanSource
,
Inc.(Æ)
3,974
95
Science
Applications
International
Corp.
1,115
87
SeaChange
International,
Inc.(Æ)
1,015
2
Semtech
Corp.(Æ)
812
42
Silicon
Laboratories,
Inc.(Æ)
2,452
246
Silicon
Motion
Technology
Corp.
-
ADR
1,983
97
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Simulations
Plus,
Inc.(Ñ)
13,306
796
SiTime
Corp.(Æ)
3,076
146
Smith
Micro
Software,
Inc.(Æ)(Ñ)
78,355
349
Sonos
,
Inc.(Æ)(Ð)
13,444
197
Super
Micro
Computer,
Inc.(Æ)
2,051
58
Synaptics
,
Inc.(Æ)(Û)
2,941
177
Synchronoss
Technologies,
Inc.(Æ)(Ð)
4,300
15
SYNNEX
Corp.
1,873
224
Tech
Data
Corp.(Æ)(Š)
1,036
150
TeleNav
,
Inc.(Æ)(Ð)
6,200
34
Tenable
Holdings,
Inc.(Æ)
2,745
82
Teradata
Corp.(Æ)
6,621
138
TrueCar
,
Inc.(Æ)
22,500
58
Unisys
Corp.(Æ)
64,275
701
Upwork
,
Inc.(Æ)
3,855
56
Varonis
Systems,
Inc.(Æ)
1,786
158
Veeco
Instruments,
Inc.(Æ)(Ð)
7,500
101
Verint
Systems,
Inc.(Æ)
3,255
147
Vishay
Intertechnology
,
Inc.
5,859
89
Vocera
Communications,
Inc.(Æ)(Ð)
2,620
56
Workiva
,
Inc.(Æ)
11,946
639
Xperi
Holding
Corp.
7,255
107
Yelp,
Inc.
Class
A(Æ)
7,263
168
Zix
Corp.(Æ)
51,234
354
29,131
Utilities
-
3.6%
Allete
,
Inc.
4,956
271
American
States
Water
Co.
1,064
84
Avista
Corp.
7,947
289
Boingo
Wireless,
Inc.(Æ)
7,256
96
Bonanza
Creek
Energy,
Inc.(Æ)
1,783
26
Brigham
Minerals,
Inc.
Class
A
34,239
423
Cogent
Communications
Holdings,
Inc.
7,629
591
Earthstone
Energy,
Inc.
Class
A(Æ)
19,345
55
GCI
Liberty,
Inc.
Class
A(Æ)
5,164
367
Gogo
,
Inc.(Æ)(Ð)
8,874
28
MDU
Resources
Group,
Inc.
44,408
984
New
Jersey
Resources
Corp.
34,506
1,126
NorthWestern
Corp.
3,291
179
NRG
Energy,
Inc.(Ð)
6,940
226
Orbcomm
,
Inc.(Æ)
10,868
42
Plains
GP
Holdings,
LP
Class
A(Æ)
7,254
65
Portland
General
Electric
Co.(Û)
10,684
447
RGC
Resources,
Inc.
7,157
173
South
Jersey
Industries,
Inc.
15,713
393
Southwest
Gas
Holdings,
Inc.
2,093
145
Unitil
Corp.
1,712
77
Vistra
Energy
Corp.
27,936
520
6,607
Total
Common
Stocks
(cost
$175,776)
179,830
Short-Term
Investments
-
6.3%
U.S.
Cash
Management
Fund(@)
11,609,371
(∞)
11,608
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
31
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Total
Short-Term
Investments
(cost
$11,608)
11,608
Other
Securities
-
8.8%
U.S.
Cash
Collateral
Fund(x)(@)
16,073,631
(∞)
16,074
Total
Other
Securities
(cost
$16,074)
16,074
Total
Investments
-
112.8%
(identified
cost
$203,458)
207,512
Securities
Sold
Short
-
(4.4)%
Consumer
Discretionary
-
(0.8)%
American
Eagle
Outfitters,
Inc.
(6,911)
(75)
Aspen
Group,
Inc.(Æ)
(1,140)
(10)
Build-A-Bear
Workshop,
Inc.
Class
A(Æ)
(2,531)
(6)
Callaway
Golf
Co.
(6,357)
(111)
Carvana
Co.(Æ)
(17)
(2)
Dorman
Products,
Inc.(Æ)
(1,060)
(71)
El
Pollo
Loco
Holdings,
Inc.(Æ)
(1,484)
(22)
EW
Scripps
Co.
(The)
Class
A
(2,272)
(20)
Express,
Inc.(Æ)
(5,506)
(8)
Fox
Factory
Holding
Corp.(Æ)
(1,512)
(125)
Gannett
Co.,
Inc.(Æ)
(12,643)
(17)
Gentex
Corp.
(5,158)
(133)
GrowGeneration
Corp.(Æ)
(2,438)
(17)
Guess?,
Inc.
(5,342)
(52)
Johnson
Outdoors,
Inc.
Class
A
(209)
(19)
Levi
Strauss
&
Co.
Class
A
(1,465)
(20)
Marine
Products
Corp.
(952)
(13)
Michaels
Cos.,
Inc.
(The)(Æ)
(4,590)
(32)
Monro
Muffler
Brake,
Inc.
(1,957)
(108)
Newell
Rubbermaid,
Inc.
(8,235)
(131)
Nordstrom,
Inc.
(3,504)
(54)
PriceSmart
,
Inc.
(996)
(60)
SEACOR
Marine
Holdings,
Inc.(Æ)
(2,278)
(6)
Thor
Industries,
Inc.
(2,873)
(306)
XPEL,
Inc.(Æ)
(909)
(14)
YETI
Holdings,
Inc.(Æ)
(530)
(23)
(1,455)
Consumer
Staples
-
(0.0)%
Celsius
Holdings,
Inc.(Æ)
(1,765)
(21)
Limoneira
Co.
(1,100)
(16)
OptimizeRx
Corp.(Æ)
(1,921)
(25)
(62)
Energy
-
(0.2)%
Abraxas
Petroleum
Corp.(Æ)
(64,241)
(15)
Ameresco
,
Inc.
Class
A(Æ)
(2,154)
(60)
Amplify
Energy
Corp.(Æ)
(7,438)
(9)
Contango
Oil
&
Gas
Co.(Æ)
(3,480)
(8)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Forum
Energy
Technologies,
Inc.(Æ)
(8,421)
(4)
Gulfport
Energy
Corp.(Æ)
(78,572)
(86)
Ring
Energy,
Inc.(Æ)
(9,000)
(10)
Solaris
Oilfield
Infrastructure,
Inc.
Class
A
(4,942)
(37)
WPX
Energy,
Inc.(Æ)
(9,777)
(62)
(291)
Financial
Services
-
(1.1)%
Allegiance
Bancshares,
Inc.
(92)
(2)
American
Finance
Trust,
Inc.(ö)
(3,187)
(25)
Annaly
Capital
Management,
Inc.(ö)
(10,789)
(71)
Anworth
Mortgage
Asset
Corp.(ö)
(19,122)
(33)
Apollo
Commercial
Real
Estate
Finance,
Inc.(ö)
(16,222)
(159)
Arbor
Realty
Trust,
Inc.(ö)
(10,400)
(96)
Ashford
Hospitality
Trust,
Inc.(ö)
(14,281)
(10)
Ashford,
Inc.(Æ)
(346)
(4)
BRP
Group,
Inc.
Class
A(Æ)
(1,082)
(19)
Cannae
Holdings,
Inc.(Æ)
(1,750)
(72)
Colony
Credit
Real
Estate,
Inc.(ö)
(4,645)
(33)
Dynex
Capital,
Inc.(ö)
(4,391)
(63)
eHealth,
Inc.(Æ)
(220)
(22)
Ellington
Residential
Mortgage(ö)
(1,506)
(16)
Emerald
Holding,
Inc.
(7,089)
(22)
Exantas
Capital
Corp.(Æ)
(8,517)
(23)
Granite
Point
Mortgage
Trust,
Inc.(ö)
(17,822)
(128)
Hannon
Armstrong
Sustainable
Infrastructure
Capital,
Inc.(ö)
(2,320)
(66)
I3
Verticals,
Inc.
Class
A(Æ)
(1,548)
(47)
Jernigan
Capital,
Inc.(ö)
(3,410)
(47)
Ladder
Capital
Corp.
Class
A(ö)
(9,332)
(76)
Moelis
&
Co.
Class
A
(3,157)
(98)
New
Residential
Investment
Corp.(ö)
(14,783)
(110)
New
York
Mortgage
Trust,
Inc.(ö)
(52,992)
(138)
Ocwen
Financial
Corp.(Æ)
(6,435)
(4)
PennyMac
Mortgage
Investment
Trust(ö)
(8,736)
(153)
Ready
Capital
Corp.(Æ)
(11,869)
(103)
Redwood
Trust,
Inc.(ö)
(13,703)
(96)
TPG
RE
Finance
Trust,
Inc.(ö)
(9,710)
(84)
Two
Harbors
Investment
Corp.(ö)
(35,465)
(179)
Veritex
Holdings,
Inc.
(2,000)
(35)
Victory
Capital
Holdings,
Inc.
Class
A
(1,000)
(17)
Western
Asset
Mortgage
Capital
Corp.(ö)
(14,623)
(40)
(2,091)
Health
Care
-
(0.8)%
Acadia
Pharmaceuticals,
Inc.(Æ)
(1,817)
(88)
ADMA
Biologics,
Inc.(Æ)
(10,244)
(30)
Alphatec
Holdings,
Inc.(Æ)
(1,000)
(5)
American
Renal
Associates
Holdings,
Inc.
(Æ)
(1,742)
(11)
Arcus
Biosciences,
Inc.(Æ)
(275)
(7)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
32
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Arena
Pharmaceuticals,
Inc.(Æ)
(2,714)
(171)
Axonics
Modulation
Technologies,
Inc.(Æ)
(400)
(14)
BioDelivery
Sciences
International,
Inc.(Æ)
(4,900)
(21)
CareDx
,
Inc.(Æ)
(400)
(14)
CASI
Pharmaceuticals,
Inc.(Æ)
(700)
(2)
Emergent
BioSolutions
,
Inc.(Æ)
(931)
(74)
Geron
Corp.(Æ)
(13,112)
(29)
Guardant
Health,
Inc.(Æ)
(404)
(33)
HealthEquity
,
Inc.(Æ)
(2,440)
(143)
Invitae
Corp.(Æ)
(3,756)
(114)
Karuna
Therapeutics,
Inc.(Æ)
(706)
(79)
Kodiak
Sciences,
Inc.(Æ)
(121)
(7)
MannKind
Corp.(Æ)
(3,300)
(6)
Matinas
BioPharma
Holdings,
Inc.(Æ)
(4,500)
(3)
MediciNova
,
Inc.(Æ)
(2,468)
(13)
Mersana
Therapeutics,
Inc.(Æ)
(527)
(12)
Misonix
,
Inc.(Æ)
(670)
(9)
Momenta
Pharmaceuticals,
Inc.(Æ)
(2,993)
(100)
NeoGenomics
,
Inc.(Æ)
(3,850)
(119)
OncoCyte
Corp.(Æ)
(595)
(1)
OrthoPediatrics
Corp.(Æ)
(693)
(30)
Phathom
Pharmaceuticals,
Inc.(Æ)
(185)
(6)
Premier,
Inc.
Class
A(Æ)
(2,748)
(94)
Quanterix
Corp.(Æ)
(705)
(19)
Repligen
Corp.(Æ)
(1,225)
(151)
Sientra
,
Inc.(Æ)
(2,183)
(8)
Tabula
Rasa
HealthCare,
Inc.(Æ)
(1,420)
(78)
Vapotherm
,
Inc.(Æ)
(601)
(25)
(1,516)
Materials
and
Processing
-
(0.3)%
Coeur
Mining,
Inc.(Æ)
(3,100)
(16)
Cornerstone
Building
Brands,
Inc.(Æ)
(4,446)
(27)
Griffon
Corp.
(1,352)
(25)
Livent
Corp.(Æ)
(2,400)
(15)
Marrone
Bio
Innovations,
Inc.(Æ)
(630)
(1)
NN,
Inc.
(5,291)
(25)
Quaker
Chemical
Corp.
(945)
(175)
Trex
Co.,
Inc.(Æ)
(1,140)
(148)
Uranium
Energy
Corp.(Æ)
(16,491)
(14)
(446)
Producer
Durables
-
(0.3)%
Altra
Industrial
Motion
Corp.
(2,940)
(94)
Aqua
Metals,
Inc.(Æ)
(6,408)
(9)
Coda
Octopus
Group,
Inc.(Æ)
(1,000)
(5)
Concrete
Pumping
Holdings,
Inc.(Æ)
(2,700)
(9)
Fluor
Corp.
(9,784)
(118)
Iteris
,
Inc.(Æ)
(2,014)
(10)
Mesa
Air
Group,
Inc.(Æ)
(747)
(3)
NV5
Global,
Inc.(Æ)
(963)
(49)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Plug
Power,
Inc.(Æ)
(14,385)
(118)
Ranpak
Holdings
Corp.(Æ)
(1,349)
(10)
Repay
Holdings
Corp.(Æ)
(2,237)
(55)
Toro
Co.
(The)
(1,989)
(132)
(612)
Technology
-
(0.8)%
Acacia
Research
Corp.(Æ)
(3,875)
(16)
Alteryx
,
Inc.
Class
A(Æ)
(245)
(40)
Appfolio
,
Inc.
Class
A(Æ)
(957)
(156)
Black
Knight,
Inc.(Æ)
(1,694)
(123)
Brooks
Automation,
Inc.
(2,697)
(119)
Cognex
Corp.
(2,644)
(158)
Envestnet
,
Inc.(Æ)
(2,207)
(162)
II-VI,
Inc.(Æ)
(3,736)
(176)
Immersion
Corp.(Æ)
(9,200)
(57)
MongoDB,
Inc.(Æ)
(248)
(56)
NAPCO
Security
Technologies,
Inc.(Æ)
(1,603)
(37)
Onto
Innovation,
Inc.(Æ)
(4,302)
(146)
Q2
Holdings,
Inc.(Æ)
(1,939)
(166)
TechTarget
,
Inc.(Æ)
(1,355)
(41)
Upland
Software,
Inc.(Æ)
(750)
(26)
Zix
Corp.(Æ)
(8,200)
(57)
(1,536)
Utilities
-
(0.1)%
Antero
Midstream
Corp.
(1,803)
(9)
Earthstone
Energy,
Inc.
Class
A(Æ)
(4,258)
(12)
HighPoint
Resources
Corp.(Æ)
(13,700)
(4)
Laredo
Petroleum,
Inc.(Æ)
(2,236)
(31)
Montage
Resources
Corp.(Æ)
(4,348)
(17)
New
Fortress
Energy
LLC(Æ)
(1,449)
(19)
Penn
Virginia
Corp.(Æ)
(3,813)
(36)
SilverBow
Resources,
Inc.(Æ)
(1,092)
(4)
(132)
Total
Securities
Sold
Short
(proceeds
$7,640)
(8,141)
Other
Assets
and
Liabilities,
Net
-
(8.4%)
(15,389)
Net
Assets
-
100.0%
183,982
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
33
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
0.5%
APi
Group
Corp.
04/08/20
76,482
10.29
787
928
JER
Investment
Trust,
Inc.
05/27/04
1,771
82.03
145
—
928
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
167
USD
12,004
09/20
382
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
382
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
$
22,463
$
—
$
—
$
—
$
22,463
12.2
Consumer
Staples
6,774
—
—
—
6,774
3.7
Energy
4,107
—
—
—
4,107
2.2
Financial
Services
37,973
—
—
—
37,973
20.
6
Health
Care
30,311
—
5
—
30,316
16.
5
Materials
and
Processing
13,384
—
—
—
13,384
7.3
Producer
Durables
29,075
—
—
—
29,075
15.8
Technology
28,981
—
150
—
29,131
15.8
Utilities
6,607
—
—
—
6,607
3.6
Short-Term
Investments
—
—
—
11,608
11,608
6.3
Other
Securities
—
—
—
16,074
16,074
8.
8
Total
Investments
179,675
—
155
27,682
207,512
112.
8
Securities
Sold
Short
**
(8,141)
—
—
—
(8,141)
(4.
4
)
Other
Assets
and
Liabilities,
Net
(8.4)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
382
—
—
—
382
0.2
Total
Other
Financial
Instruments
*
$
382
$
—
$
—
$
—
$
382
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
U.S.
Small
Cap
Equity
Fund
*
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
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
a
fair
value
for
the
period
ended
June
30,
2020,
were
less
than
1%
of
net
assets.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
35
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
382
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
1,800
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
285
*
Includes
cumulative
appreciation/depreciation
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
36
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
15,806
$
—
$
15,806
Total
Financial
and
Derivative
Assets
15,806
—
15,806
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
15,806
$
—
$
15,806
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
Nova
Scotia
$
368
$
—
$
368
$
—
Barclays
940
—
940
—
Citigroup
1,757
—
1,757
—
Fidelity
1,435
—
1,435
—
JPMorgan
Chase
1,626
—
1,626
—
Merrill
Lynch
1,554
—
1,554
—
Morgan
Stanley
6,948
—
6,948
—
National
Bank
of
Canada
46
—
46
—
Wells
Fargo
1,132
—
1,132
—
Total
$
15,806
$
—
$
15,806
$
—
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
37
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Short
Sales
Securities
sold
short,
at
fair
value
$
8,141
$
—
$
8,141
Total
Financial
and
Derivative
Liabilities
8,141
—
8,141
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
8,141
$
—
$
8,141
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
State
Street
$
8,141
$
—
$
8,141
$
—
Total
$
8,141
$
—
$
8,141
$
—
*
Fair
value
of
securities
on
loan
as
reported
in
the
footnotes
to
the
Statement
of
Assets
and
Liabilities.
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
38
U.S.
Small
Cap
Equity
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
203,458
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
207,512
Cash
...............................................................................................................................................................................................
11
Receivables:
Dividends
and
interest
.......................................................................................................................................................
108
Dividends
from
affiliated
funds
..........................................................................................................................................
2
Investments
sold
................................................................................................................................................................
1,312
Fund
shares
sold
................................................................................................................................................................
86
From
broker(a)
...................................................................................................................................................................
869
Variation
margin
on
futures
contracts
.................................................................................................................................
383
Prepaid
expenses
...........................................................................................................................................................................
1
Total
assets
.................................................................................................................................................
210,284
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
1,722
Fund
shares
redeemed
.......................................................................................................................................................
124
Accrued
fees
to
affiliates
....................................................................................................................................................
145
Other
accrued
expenses
.....................................................................................................................................................
96
Securities
sold
short,
at
fair
value(‡)
..............................................................................................................................................
8,141
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
16,074
Total
liabilities
.............................................................................................................................................
26,302
Net
Assets
............................................................................................................................................................
$
183,982
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
39
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
(21,112)
Shares
of
beneficial
interest
...........................................................................................................................................................
161
Additional
paid-in
capital
..............................................................................................................................................................
204,933
Net
Assets
............................................................................................................................................................
$
183,982
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
11.45
Net
assets
...............................................................................................................................................................................
$
183,982,021
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
16,069,298
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
15,806
(‡)
Proceeds
on
securities
sold
short
$
7,640
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
27,682
(a)
Receivable
from
Broker
for
Futures
$
869
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
40
U.S.
Small
Cap
Equity
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
1,118
Dividends
from
affiliated
funds
.........................................................................................................................................
40
Securities
lending
income
(net)
.........................................................................................................................................
39
Total
investment
income
...............................................................................................................................................................
1,197
Expenses
Advisory
fees
....................................................................................................................................................................
836
Administrative
fees
...........................................................................................................................................................
46
Custodian
fees
...................................................................................................................................................................
67
Transfer
agent
fees
............................................................................................................................................................
4
Professional
fees
...............................................................................................................................................................
42
Trustees’
fees
....................................................................................................................................................................
5
Printing
fees
......................................................................................................................................................................
19
Dividends
from
securities
sold
short
.................................................................................................................................
105
Interest
expense
paid
on
securities
sold
short
...................................................................................................................
33
Miscellaneous
...................................................................................................................................................................
8
Total
expenses
...............................................................................................................................................................................
1,165
Net
investment
income
(loss)
........................................................................................................................................................
32
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(24,833)
Investments
in
affiliated
funds
..........................................................................................................................................
1
Futures
contracts
..............................................................................................................................................................
1,800
Securities
sold
short
..........................................................................................................................................................
2,465
Net
realized
gain
(loss)
..................................................................................................................................................................
(20,567)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
(19,834)
Futures
contracts
..............................................................................................................................................................
285
Securities
sold
short
..........................................................................................................................................................
(11)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(19,560)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(40,127)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(40,095)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
41
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
32
$
762
Net
realized
gain
(loss)
......................................................................................................................
(20,567)
13,677
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(19,560)
31,510
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(40,095)
45,949
Distributions
To
shareholders
.................................................................................................................................
(5,018)
(4,653)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(5,018)
(4,653)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
1,196
(17,887)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(43,917)
23,409
Net
Assets
Beginning
of
period
.................................................................................................................................
227,899
204,490
End
of
period
..........................................................................................................................................
$
183,982
$
227,899
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
721
$
7,29
7
579
$
7,812
Proceeds
from
reinvestment
of
distributions
367
5,017
326
4,653
Payments
for
shares
redeemed
(960)
(11,118)
(2,208)
(30,352)
Total
increase
(decrease)
128
$
1,19
6
(1,303)
$
(17,887)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
42
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
June
30,
2020(1)
14.30
—
(c)
(2.53)
(2.53)
(.01)
(.31)
—
December
31,
2019
11.86
.05
2.68
2.73
(.07)
(.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
43
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.32)
11.45
(18.07)
183,982
1.26
1.26
.0
3
72
(.29)
14.30
23.07
227,899
1.19
1.19
.34
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.
44
U.S.
Small
Cap
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020
,
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
$
136,372
Administration
fees
7,576
Transfer
agent
fees
667
Trustee
fees
728
$
145,343
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
$
8,457
$
57,301
$
54,151
$
1
$
—
$
11,608
$
40
$
—
U.S.
Cash
Collateral
Fund
15,524
40,798
40,248
—
—
16,074
95
—
$
23,981
$
98,099
$
94,399
$
1
$
—
$
27,682
$
135
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
204,934,449
$
25,119,210
$
(30,300,133)
$
(5,180,923)
Russell
Investment
Funds
International
Developed
Markets
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
International
Developed
Markets
Fund
45
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
June
30,
2020
$
842.60
$
1,019.54
Expenses
Paid
During
Period*
$
4.90
$
5.37
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.07%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
46
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
87.1%
Argentina
-
0.1%
YPF
SA
-
ADR
34,203
197
Australia
-
1.5%
AGL
Energy,
Ltd.
33,334
393
Alumina,
Ltd.
61,212
69
Australia
&
New
Zealand
Banking
Group,
Ltd.
-
ADR
18,262
236
BHP
Group,
Ltd.
-
ADR
2,672
66
BlueScope
Steel,
Ltd.
12,890
105
Boral,
Ltd.
38,655
102
Commonwealth
Bank
of
Australia
-
ADR
15,110
728
Crown
Resorts,
Ltd.
8,918
60
CSL,
Ltd.
1,090
216
Dexus
Property
Group(Æ)(ö)
13,721
87
Flight
Centre,
Ltd.
13,704
106
Fortescue
Metals
Group,
Ltd.
26,460
254
GPT
Group
(The)(ö)
35,203
102
Insurance
Australia
Group,
Ltd.(Æ)
56,379
225
Medibank
Pvt
,
Ltd.
23,555
49
National
Australia
Bank,
Ltd.
-
ADR
14,149
179
Origin
Energy,
Ltd.
44,165
179
QBE
Insurance
Group,
Ltd.
30,022
185
Rio
Tinto
PLC
17,005
956
Rio
Tinto,
Ltd.
-
ADR
964
65
Scentre
Group(ö)
63,375
95
Sonic
Healthcare,
Ltd.
7,857
166
Suncorp
Group,
Ltd.(Æ)
17,531
112
Vicinity
Centres
(Æ)(ö)
262,788
261
Westpac
Banking
Corp.
9,771
122
5,118
Austria
-
0.2%
Erste
Group
Bank
AG
20,321
478
OMV
AB
3,926
131
609
Belgium
-
0.4%
Ageas
SA
18,684
660
KBC
Groep
NV
8,025
460
Solvay
SA
1,860
149
1,269
Brazil
-
0.1%
Pagseguro
Digital,
Ltd.
Class
A(Æ)(Ñ)
9,444
334
Canada
-
4.0%
ARC
Resources,
Ltd.(Ñ)
28,974
97
Bank
of
Montreal
6,058
322
Bank
of
Nova
Scotia
(The)
4,464
185
Barrick
Gold
Corp.
45,908
1,235
BCE,
Inc.
7,410
309
CAE,
Inc.
87,395
1,419
Cameco
Corp.
Class
A
17,489
179
Canadian
Imperial
Bank
of
Commerce(Ñ)
2,599
174
Canadian
National
Railway
Co.
28,574
2,529
Canadian
Natural
Resources,
Ltd.
9,136
158
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Cenovus
Energy,
Inc.
24,425
114
CI
Financial
Corp.
22,010
280
Dollarama
,
Inc.
13,142
437
Fairfax
Financial
Holdings,
Ltd.
462
143
Great-West
Lifeco
,
Inc.
13,079
229
iA
Financial
Corp.,
Inc.
7,351
246
Imperial
Oil,
Ltd.
6,701
108
Kinross
Gold
Corp.(Æ)
84,944
613
Magna
International,
Inc.
Class
A
5,492
245
Manulife
Financial
Corp.
42,506
578
National
Bank
of
Canada
2,100
95
Pembina
Pipeline
Corp.
12,401
310
Power
Corp.
of
Canada
13,001
229
Royal
Bank
of
Canada
-
GDR
10,049
682
Shaw
Communications,
Inc.
Class
B
7,916
129
Sun
Life
Financial,
Inc.
21,402
786
Suncor
Energy,
Inc.
12,867
217
Toronto-Dominion
Bank
(The)
20,957
935
Tourmaline
Oil
Corp.
15,073
132
13,115
Cayman
Islands
-
0.6%
Meituan-Dianping
Class
B(Æ)
85,100
1,890
China
-
3.4%
Alibaba
Group
Holding,
Ltd.
-
ADR(Æ)
19,661
4,242
China
Mobile,
Ltd.
133,000
899
China
Resources
Power
Holdings
Co.,
Ltd.
1,050,417
1,241
China
Telecom
Corp.,
Ltd.
Class
H
2,188,000
613
China
Unicom
Hong
Kong,
Ltd.
1,164,000
630
Dongfeng
Motor
Group
Co.,
Ltd.
Class
H
1,052,000
629
Lenovo
Group,
Ltd.
1,554,257
861
Ping
An
Insurance
Group
Co.
of
China,
Ltd.
Class
H
48,466
484
Sunny
Optical
Technology
Group
Co.,
Ltd.
27,099
432
Tencent
Holdings,
Ltd.
20,084
1,290
11,321
Colombia
-
0.0%
Millicom
International
Cellular
SA
547
14
Denmark
-
2.1%
AP
Moller
-
Maersk
A/S
Class
B
2,816
3,279
Coloplast
A/S
Class
B
1,272
197
Danske
Bank
A/S
40,324
536
Drilling
Co.
of
1972
A/S
(The)(Æ)
1,163
24
DSV
A/S
4,922
600
Genmab
A/S(Æ)
823
275
H
Lundbeck
A/S
1,635
61
Novo
Nordisk
A/S
Class
B
27,241
1,764
Novozymes
A/S
Class
B
2,245
130
Pandora
A/S
3,850
209
7,075
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
47
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Finland
-
1.3%
Elisa
OYJ
Class
A
4,856
295
Fortum
OYJ
7,738
147
Kone
OYJ
Class
B
6,334
435
Neste
OYJ
14,398
562
Nokia
OYJ
252,645
1,107
Nokian
Renkaat
OYJ
2,135
47
Nordea
Bank
AB
41,131
283
Orion
OYJ
Class
B
1,887
91
Sampo
OYJ
Class
A
11,238
386
Stora
Enso
OYJ
Class
R
14,848
177
UPM-
Kymmene
OYJ
20,318
587
Wartsila
OYJ
Abp
Class
B
6,190
51
4,168
France
-
8.7%
Accor
SA(Æ)
13,426
364
Airbus
Group
SE(Æ)
7,056
502
Amundi
SA(Æ)(Þ)
21,112
1,651
Arkema
SA
1,726
165
Atos
SE(Æ)
3,906
332
AXA
SA
45,484
949
BNP
Paribas
SA(Æ)
30,626
1,214
Bouygues
SA
-
ADR(Æ)
18,902
645
Capgemini
SE
3,935
450
Carrefour
SA
12,501
193
Cie
de
Saint-Gobain(Æ)
55,403
1,991
Cie
Generale
des
Etablissements
Michelin
SCA
Class
B
15,326
1,588
Credit
Agricole
SA(Æ)
24,496
231
Danone
SA
4,141
286
Dassault
Aviation
SA(Æ)
144
133
Dassault
Systemes
SE
680
117
Eiffage
SA(Æ)
1,933
176
Engie
SA(Æ)
85,870
1,060
Hermes
International
94
78
L'Oreal
SA
3,097
993
LVMH
Moet
Hennessy
Louis
Vuitton
SE
-
ADR
3,506
1,536
Orange
SA
-
ADR
8,264
99
Peugeot
SA(Æ)
11,122
181
Publicis
Groupe
SA
-
ADR
35,088
1,134
Renault
SA(Æ)
17,615
446
Rexel
SA
Class
H
267,436
3,053
Safran
SA(Æ)
3,643
364
Sanofi
-
ADR
9,598
976
Schneider
Electric
SE
25,720
2,852
SCOR
SE
-
ADR
32,737
896
Societe
Generale
SA(Æ)
44,209
735
Total
SA
54,130
2,062
Ubisoft
Entertainment
SA(Æ)
6,320
521
Unibail
-
Rodamco
-Westfield(Ñ)(ö)
1,829
103
Valeo
SA
5,006
131
Worldline
SA(Æ)(Þ)
5,557
480
28,687
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Germany
-
4.3%
1&1
Drillisch
AG
2,043
53
adidas
AG(Æ)
9,111
2,384
Allianz
SE
2,175
444
BASF
SE
33,917
1,895
Bayer
AG
5,653
415
BMW
US
Capital
LLC
2,774
177
Brenntag
AG
3,883
204
Continental
AG
1,558
152
Covestro
AG(Þ)
51,207
1,943
Daimler
AG
29,082
1,179
Evonik
Industries
AG
4,697
119
Fresenius
SE
&
Co.
KGaA
4,361
215
GEA
Group
AG
4,183
132
Hannover
Rueck
SE
2,428
418
HeidelbergCement
AG
3,101
165
Infineon
Technologies
AG
-
ADR
20,319
475
KION
Group
AG
1,793
110
Metro
AG(Æ)
49,527
172
Metro
AG
15,401
146
Muenchener
Rueckversicherungs-
Gesellschaft
AG
3,591
932
Salzgitter
AG(Æ)
6,117
86
SAP
SE
-
ADR
1,638
228
Siemens
AG
10,381
1,219
Uniper
SE
2,518
81
United
Internet
AG
5,832
246
Zalando
SE(Æ)(Þ)
9,199
647
14,237
Hong
Kong
-
2.2%
AIA
Group,
Ltd.
300,208
2,793
Bank
of
East
Asia,
Ltd.
(The)
71,800
164
CK
Asset
Holdings,
Ltd.
122,049
726
CK
Hutchison
Holdings,
Ltd.
Class
B
19,313
124
CK
Infrastructure
Holdings,
Ltd.
34,000
175
CLP
Holdings,
Ltd.
28,500
279
Galaxy
Entertainment
Group,
Ltd.
66,000
448
Hang
Seng
Bank,
Ltd.
23,400
395
Henderson
Land
Development
Co.,
Ltd.
35,200
133
Hongkong
Land
Holdings,
Ltd.
29,300
121
Jardine
Matheson
Holdings,
Ltd.
4,800
201
Jardine
Strategic
Holdings,
Ltd.
4,400
95
New
World
Development
Co.,
Ltd.
33,000
157
Power
Assets
Holdings,
Ltd.
55,000
299
Sino
Land
Co.,
Ltd.
84,000
106
Sun
Hung
Kai
Properties,
Ltd.
14,500
185
Swire
Pacific,
Ltd.
Class
A
16,000
85
Techtronic
Industries
Co.,
Ltd.
48,271
471
WH
Group,
Ltd.(Þ)
123,000
106
Wharf
Real
Estate
Investment
Co.,
Ltd.
20,000
95
Wheelock
&
Co.,
Ltd.(Š)
21,000
166
7,324
India
-
1.0%
Canara
Bank(Æ)
119,258
159
HDFC
Bank,
Ltd.
-
ADR
3,662
166
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
48
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Housing
Development
Finance
Corp.,
Ltd.
111,415
2,614
NTPC,
Ltd.
30,955
40
Oil
&
Natural
Gas
Corp.,
Ltd.
218,773
238
Zee
Entertainment
Enterprises,
Ltd.
105,298
238
3,455
Indonesia
-
0.1%
Bank
Mandiri
Persero
Tbk
PT
560,300
194
Ireland
-
2.4%
Accenture
PLC
Class
A
9,830
2,111
AIB
Group
PLC
216,609
272
Allegion
PLC
20,393
2,085
Bank
of
Ireland
Group
PLC(Æ)
133,060
272
CRH
PLC
10,234
350
Flutter
Entertainment
PLC
3,038
399
Kerry
Group
PLC
Class
A
17,825
2,217
Ryanair
Holdings
PLC
-
ADR(Æ)
3,483
231
7,937
Israel
-
0.3%
Bank
Hapoalim
BM
28,482
171
Bank
Leumi
Le-Israel
BM
36,822
186
ICL
Group,
Ltd.
26,376
79
Israel
Discount
Bank,
Ltd.
Class
A
28,582
87
Mizrahi
Tefahot
Bank,
Ltd.
6,331
119
Nice,
Ltd.(Æ)
1,352
255
897
Italy
-
2.2%
Assicurazioni
Generali
SpA
47,101
712
Atlantia
SpA
(Æ)
10,727
172
BPER
Banca(Æ)(Ñ)
57,108
142
Davide
Campari-Milano
SpA
54,158
456
Enel
SpA
156,253
1,346
ENI
SpA
-
ADR
118,126
1,125
Ferrari
NV
3,018
514
FinecoBank
Banca
Fineco
SpA
(Æ)
26,898
362
Intesa
Sanpaolo
SpA
(Æ)
148,539
284
Mediobanca
Banca
di
Credito
Finanziario
SpA
15,582
112
Moncler
SpA
(Æ)
9,514
363
Poste
Italiane
SpA
(Þ)
14,442
125
Saipem
SpA
113,516
283
Telecom
Italia
SpA
184,329
72
UniCredit
SpA
(Æ)
150,474
1,381
7,449
Japan
-
18.3%
Aozora
Bank,
Ltd.
6,600
115
Asahi
Glass
Co.,
Ltd.
4,100
117
Asahi
Kasei
Corp.
13,000
106
Astellas
Pharma,
Inc.
44,200
736
Benesse
Holdings,
Inc.
3,100
83
Bridgestone
Corp.
17,800
573
Brother
Industries,
Ltd.
5,800
105
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Canon,
Inc.
23,500
468
Central
Japan
Railway
Co.
1,000
155
Chiba
Bank,
Ltd.
(The)
28,900
136
Chiyoda
Corp.(Æ)
31,000
81
Chubu
Electric
Power
Co.,
Inc.
9,400
118
Citizen
Watch
Co.,
Ltd.
61,500
200
Concordia
Financial
Group,
Ltd.
29,700
95
Daifuku
Co.,
Ltd.
1,800
157
Dai-ichi
Life
Holdings,
Inc.
58,950
702
Daito
Trust
Construction
Co.,
Ltd.
2,600
239
Daiwa
House
Industry
Co.,
Ltd.
4,400
104
DeNA
Co.,
Ltd.
29,700
370
Denso
Corp.
17,800
694
Eisai
Co.,
Ltd.
12,340
978
Electric
Power
Development
Co.,
Ltd.
5,100
97
ENEOS
Holdings,
Inc.
366,600
1,299
Fuji
Heavy
Industries,
Ltd.
23,600
491
Fuji
Media
Holdings,
Inc.
12,900
124
FUJIFILM
Holdings
Corp.
4,200
180
Fujitsu,
Ltd.
10,300
1,206
Fukuoka
Financial
Group,
Inc.
17,800
281
GMO
Payment
Gateway,
Inc.
4,800
500
Gree
,
Inc.
55,900
239
Hino
Motors,
Ltd.
31,500
213
Hitachi
Metals,
Ltd.
144,200
1,717
Hitachi,
Ltd.
4,900
155
Honda
Motor
Co.,
Ltd.
153,900
3,934
Iida
Group
Holdings
Co.,
Ltd.
45,400
695
Inpex
Corp.
311,100
1,925
Isuzu
Motors,
Ltd.
76,800
694
ITOCHU
Corp.
16,300
351
J
Front
Retailing
Co.,
Ltd.
13,300
89
Japan
Exchange
Group,
Inc.
8,300
192
Japan
Post
Holdings
Co.,
Ltd.
20,000
142
Japan
Tobacco,
Inc.
12,900
239
JGC
Holdings
Corp.
54,400
573
JSR
Corp.
24,400
471
Kajima
Corp.
9,000
107
Kawasaki
Heavy
Industries,
Ltd.
7,200
104
KDDI
Corp.
28,700
861
Keyence
Corp.
4,900
2,045
Kirin
Holdings
Co.,
Ltd.
12,800
270
Komatsu,
Ltd.
75,400
1,542
Kyocera
Corp.
8,000
435
Marubeni
Corp.
39,300
178
Mebuki
Financial
Group,
Inc.
50,600
117
Mitsubishi
Chemical
Holdings
Corp.
24,700
144
Mitsubishi
Corp.
8,100
171
Mitsubishi
Electric
Corp.
52,500
682
Mitsubishi
Estate
Co.,
Ltd.
37,100
552
Mitsubishi
Gas
Chemical
Co.,
Inc.
12,700
192
Mitsubishi
Heavy
Industries,
Ltd.
16,100
380
Mitsubishi
Motors
Corp.
90,500
223
Mitsubishi
UFJ
Financial
Group,
Inc.
353,000
1,381
Mitsubishi
UFJ
Lease
&
Finance
Co.,
Ltd.
31,600
150
Mitsui
&
Co.,
Ltd.
66,900
989
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
49
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Mitsui
Chemicals,
Inc.
5,300
110
MS&AD
Insurance
Group
Holdings,
Inc.
24,500
673
Murata
Manufacturing
Co.,
Ltd.
7,200
422
NGK
Spark
Plug
Co.,
Ltd.
8,100
116
Nikon
Corp.
47,900
401
Nintendo
Co.,
Ltd.
510
227
Nippon
Steel
Corp.
13,900
131
Nippon
Telegraph
&
Telephone
Corp.
8,206
191
Nippon
Television
Holdings,
Inc.
26,800
290
Nissan
Motor
Co.,
Ltd.
123,200
456
Nitto
Denko
Corp.
14,000
792
Nomura
Holdings,
Inc.
175,500
785
Nomura
Real
Estate
Holdings,
Inc.
4,900
91
NTT
DOCOMO,
Inc.
23,400
624
Obayashi
Corp.
16,300
152
Oji
Holdings
Corp.
32,600
151
ORIX
Corp.
12,900
159
Otsuka
Holdings
Co.,
Ltd.
5,000
218
Panasonic
Corp.
189,100
1,648
Resona
Holdings,
Inc.
396,700
1,354
Sekisui
Chemical
Co.,
Ltd.
9,200
132
Sekisui
House,
Ltd.
14,000
267
Shimamura
Co.,
Ltd.
10,300
697
Shimizu
Corp.
12,300
101
Shin-Etsu
Chemical
Co.,
Ltd.
22,935
2,680
SMC
Corp.
700
357
SoftBank
Group
Corp.
9,600
484
Sompo
Japan
Nipponkoa
Holdings,
Inc.
6,200
213
Sony
Corp.
5,710
391
Sumitomo
Chemical
Co.,
Ltd.
25,000
75
Sumitomo
Corp.
14,200
163
Sumitomo
Electric
Industries,
Ltd.
17,000
196
Sumitomo
Mitsui
Financial
Group,
Inc.
82,300
2,314
Sumitomo
Mitsui
Trust
Holdings,
Inc.
29,700
834
Suzuki
Motor
Corp.
23,000
780
T&D
Holdings,
Inc.
171,600
1,467
Taiheiyo
Cement
Corp.
5,200
120
Takeda
Pharmaceutical
Co.,
Ltd.
37,400
1,335
Teijin,
Ltd.
7,000
111
THK
Co.,
Ltd.
17,900
443
Tohoku
Electric
Power
Co.,
Inc.
12,600
120
Tokio
Marine
Holdings,
Inc.
12,200
532
Tokyo
Electric
Power
Co.
Holdings,
Inc.
(Æ)
33,900
104
Tokyo
Electron,
Ltd.
4,300
1,055
Tokyu
Fudosan
Holdings
Corp.
16,800
79
Toppan
Printing
Co.,
Ltd.
8,600
143
Toray
Industries,
Inc.
34,700
163
Tosoh
Corp.
7,800
106
Toyota
Industries
Corp.
2,000
106
Toyota
Motor
Corp.
9,600
602
Toyota
Tsusho
Corp.
5,600
142
Trend
Micro,
Inc.
32,500
1,814
Yamada
Denki
Co.,
Ltd.
34,700
172
Z
Holdings
Corp.
135,700
662
60,613
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Jersey
-
0.1%
Ferguson
PLC
2,301
188
Luxembourg
-
0.9%
ArcelorMittal
SA(Æ)
7,875
83
Eurofins
Scientific
SE
3,077
1,929
RTL
Group
SA
10,228
327
Spotify
Technology
SA(Æ)
2,299
594
Tenaris
SA
24,829
160
3,093
Macao
-
0.1%
Sands
China,
Ltd.
107,625
421
Malaysia
-
0.1%
CIMB
Group
Holdings
BHD
309,300
259
Mexico
-
0.2%
Grupo
Televisa
SAB
-
ADR(Æ)
143,442
752
Netherlands
-
4.1%
ABN
AMRO
Bank
NV(Þ)
77,885
669
Adyen
NV(Æ)(Þ)
540
787
Aegon
NV
41,917
125
ASML
Holding
NV
3,800
1,393
Exor
NV
2,352
134
Heineken
NV
38,952
3,587
ING
Groep
NV
370,947
2,577
Koninklijke
Ahold
Delhaize
NV
11,431
311
Koninklijke
KPN
NV
295,428
782
Mylan
NV(Æ)
56,337
906
NN
Group
NV
5,663
190
PostNL
NV
-
ADR
118,940
255
Randstad
NV
2,989
133
Royal
Dutch
Shell
PLC
Class
A
83,039
1,341
Yandex
NV
Class
A(Æ)(Ñ)
10,688
535
13,725
New
Zealand
-
0.3%
a2
Milk
Co.,
Ltd.
(The)(Æ)
39,510
510
Fletcher
Building,
Ltd.(Æ)
37,706
90
Meridian
Energy,
Ltd.
22,166
69
Spark
New
Zealand,
Ltd.
100,433
297
966
Norway
-
0.6%
DNB
ASA
10,403
138
Mowi
ASA
21,701
412
Norsk
Hydro
ASA(Æ)
241,043
667
Orkla
ASA
25,062
220
Statoil
ASA
Class
N
47,835
680
2,117
Portugal
-
0.1%
Energias
de
Portugal
SA
36,785
175
Russia
-
0.3%
Gazprom
PJSC
-
ADR
102,008
549
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Lukoil
PJSC
-
ADR
2,628
195
Sberbank
of
Russia
PJSC
-
ADR(Æ)
35,611
405
1,149
Singapore
-
1.2%
CapitaLand,
Ltd.
64,500
135
DBS
Group
Holdings,
Ltd.
63,300
947
Genting
Singapore,
Ltd.
99,700
55
Oversea-Chinese
Banking
Corp.,
Ltd.
21,945
142
Singapore
Technologies
Engineering,
Ltd.
21,600
51
Singapore
Telecommunications,
Ltd.
246,700
436
United
Overseas
Bank,
Ltd.
13,200
192
UOL
Group,
Ltd.
45,800
224
Wilmar
International,
Ltd.
571,300
1,683
3,865
South
Africa
-
0.6%
Anglo
American
PLC
45,049
1,042
Gold
Fields,
Ltd.
-
ADR
50,079
471
Impala
Platinum
Holdings,
Ltd.
38,050
254
MTN
Group,
Ltd.
61,938
188
1,955
South
Korea
-
1.8%
Hankook
Tire
&
Technology
Co.,
Ltd.
12,675
260
KB
Financial
Group,
Inc.
25,629
733
KT
Corp.
-
ADR
75,080
731
LG
Household
&
Health
Care,
Ltd.
1,393
1,557
POSCO
5,682
822
Samsung
Electronics
Co.,
Ltd.
12,719
564
Shinhan
Financial
Group
Co.,
Ltd.
54,698
1,307
5,974
Spain
-
1.4%
ACS
Actividades
de
Construccion
y
Servicios
SA
4,727
119
Banco
Bilbao
Vizcaya
Argentaria
SA
-
ADR
51,081
175
Banco
Santander
SA
-
ADR
87,956
214
Bankia
SA
460,725
490
CaixaBank
SA
392,208
836
Cellnex
Telecom
SA(Þ)
23,710
1,444
Endesa
SA
-
ADR(Ñ)
15,547
383
Gas
Natural
SDG
SA
6,870
128
Industria
de
Diseno
Textil
SA
15,971
422
Red
Electrica
Corp.
SA
10,423
194
Repsol
SA
-
ADR
21,427
187
Telefonica
SA
-
ADR
40,445
194
4,786
Sweden
-
1.6%
Assa
Abloy
AB
Class
B
23,135
470
Atlas
Copco
AB(Æ)
15,908
673
Bausch
&
Lomb,
Inc.(Æ)
19,840
451
ICA
Gruppen
AB
1,554
74
Investor
AB
Class
B
1,564
82
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Kinnevik
AB
Class
B
3,988
105
Sandvik
AB(Æ)
53,667
1,000
Skandinaviska
Enskilda
Banken
AB
Class
A
22,237
192
Skanska
AB
Class
B(Æ)
7,915
161
SKF
AB
Class
B
9,541
177
Svenska
Handelsbanken
AB
Class
A(Æ)
25,391
241
Swedbank
AB
Class
A
10,741
137
Swedish
Match
AB
7,079
497
Telefonaktiebolaget
LM
Ericsson
Class
B
76,657
708
Volvo
AB
Class
B
14,311
224
5,192
Switzerland
-
7.9%
ABB,
Ltd.
30,027
675
Adecco
SA
30,586
1,433
Alcon,
Inc.(Æ)
6,099
349
Baloise
Holding
AG
1,774
266
Chocoladefabriken
Lindt
&
Spruengli
AG
23
189
Cie
Financiere
Richemont
SA
1,133
72
Credit
Suisse
Group
AG
71,831
741
Glencore
PLC(Æ)
159,427
337
Julius
Baer
Group,
Ltd.(Æ)
22,974
960
Kuehne
&
Nagel
International
AG(Æ)
1,290
214
LafargeHolcim
,
Ltd.(Æ)
35,015
1,531
Lonza
Group
AG
874
461
Nestle
SA
49,442
5,463
Novartis
AG
34,325
2,983
Partners
Group
Holding
AG
1,477
1,337
Roche
Holding
AG
9,228
3,195
SGS
SA
156
381
Swiss
Life
Holding
AG
800
296
Swiss
Re
AG
6,770
521
Swisscom
AG
399
209
Temenos
AG
3,091
479
UBS
Group
AG
283,757
3,260
Zurich
Insurance
Group
AG
2,516
886
26,238
Taiwan
-
2.2%
Catcher
Technology
Co.,
Ltd.
119,513
897
Hon
Hai
Precision
Industry
Co.,
Ltd.
412,184
1,203
Innolux
Corp.
1,155,000
308
MediaTek
,
Inc.
37,000
724
Shin
Kong
Financial
Holding
Co.,
Ltd.
1,105,000
321
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
86,000
910
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
-
ADR
50,401
2,862
7,225
Thailand
-
0.2%
Kasikornbank
PCL
195,800
590
United
Kingdom
-
10.0%
3i
Group
PLC
29,168
300
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
51
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Admiral
Group
PLC
8,940
254
Ashtead
Group
PLC
6,357
214
Associated
British
Foods
PLC
2,027
48
AstraZeneca
PLC
14,138
1,474
Aviva
PLC
192,090
650
Babcock
International
Group
PLC
90,925
349
BAE
Systems
PLC
26,210
157
Barclays
PLC
610,355
864
Barratt
Developments
PLC
42,308
260
Berkeley
Group
Holdings
PLC
6,208
320
BP
PLC
291,419
1,108
British
American
Tobacco
PLC
14,755
567
British
Land
Co.
PLC
(The)(ö)
52,154
249
BT
Group
PLC
465,803
657
Centrica
PLC
467,952
223
Coca-Cola
European
Partners
PLC
1,154
44
Compass
Group
PLC
96,935
1,334
Diageo
PLC
22,800
757
Direct
Line
Insurance
Group
PLC
95,746
321
Experian
PLC
7,218
252
Fiat
Chrysler
Automobiles
NV
18,218
183
Halma
PLC
8,601
245
HSBC
Holdings
PLC
275,035
1,287
Imperial
Tobacco
Group
PLC
5,982
114
InterContinental
Hotels
Group
PLC(Æ)
980
43
Intermediate
Capital
Group
PLC(Æ)
10,123
161
J
Sainsbury
PLC
870,709
2,249
John
Wood
Group
PLC
445,447
1,068
Johnson
Matthey
PLC
5,879
153
Kingfisher
PLC
318,042
869
Land
Securities
Group
PLC(ö)
34,795
238
Legal
&
General
Group
PLC
91,982
251
Linde
PLC
14,998
3,156
Lloyds
Banking
Group
PLC
641,761
248
London
Stock
Exchange
Group
PLC
5,147
532
M&G
PLC
56,894
118
Marks
&
Spencer
Group
PLC
175,249
215
National
Grid
PLC
12,933
158
Persimmon
PLC
Class
A
10,068
285
Prudential
PLC
7,296
110
Reckitt
Benckiser
Group
PLC
763
70
RELX
PLC
2,687
62
Royal
Bank
of
Scotland
Group
PLC
402,467
605
Royal
Dutch
Shell
PLC
Class
B
10,500
159
RSA
Insurance
Group
PLC
71,346
362
Scottish
&
Southern
Energy
PLC
10,113
171
Segro
PLC(ö)
30,362
336
Smith
&
Nephew
PLC
32,132
599
Smiths
Group
PLC
3,388
59
St.
James's
Place
PLC
15,239
180
Standard
Chartered
PLC
364,533
1,984
Standard
Life
Aberdeen
PLC(Æ)
127,622
422
Taylor
Wimpey
PLC
134,449
237
TechnipFMC
PLC
116,326
796
Tesco
PLC
301,318
851
Travis
Perkins
PLC
115,406
1,607
Unilever
NV
2,045
108
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Unilever
PLC
2,116
114
Vodafone
Group
PLC
842,721
1,344
Wausau
Paper
Corp.
110,875
865
Wm
Morrison
Supermarkets
PLC
80,853
191
33,207
United
States
-
0.2%
Ovintiv
,
Inc.
30,764
293
VEON,
Ltd.(Æ)
134,442
242
535
Total
Common
Stocks
(cost
$331,836)
288,315
Preferred
Stocks
-
1.6%
Germany
-
0.8%
Porsche
Automobil
Holding
SE
4.151%
(Ÿ)
5,695
326
Volkswagen
AG(Æ)
0.000%
15,108
2,285
2,611
South
Korea
-
0.8%
Samsung
Electronics
Co.,
Ltd.
2.257%
(Ÿ)
63,953
2,498
Total
Preferred
Stocks
(cost
$5,318)
5,109
Warrants
&
Rights
-
0.0%
Spain
-
0.0%
ACS
Actividades
de
Construccion
y
Servicios
SA(Æ)
2020
Rights
66,599
25
Total
Warrants
&
Rights
(cost
$28)
25
Short-Term
Investments
-
6.2%
United
States
-
6.2%
U.S.
Cash
Management
Fund(@)
20,655,239
(∞)
20,653
Total
Short-Term
Investments
(cost
$20,653)
20,653
Other
Securities
-
0.5%
U.S.
Cash
Collateral
Fund(x)(@)
1,643,748
(∞)
1,644
Total
Other
Securities
(cost
$1,644)
1,644
Total
Investments
-
95.4%
(identified
cost
$359,479)
315,746
Other
Assets
and
Liabilities,
Net
-
4.6%
15,278
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
52
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Net
Assets
-
100.0%
331,024
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
53
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
2.4%
ABN
AMRO
Bank
NV
06/26/19
EUR
77,885
15.24
1,187
669
Adyen
NV
07/25/19
EUR
540
749.70
405
787
Amundi
SA
02/21/19
EUR
21,112
64.32
1,358
1,651
Cellnex
Telecom
SA
06/19/17
EUR
23,710
23.69
562
1,444
Covestro
AG
08/15/19
EUR
51,207
35.77
1,833
1,943
Poste
Italiane
SpA
06/26/19
EUR
14,442
10.45
151
125
WH
Group,
Ltd.
06/26/19
HKD
123,000
1.02
125
106
Worldline
SA
02/14/20
EUR
5,557
78.98
439
480
Zalando
SE
12/12/19
EUR
9,199
48.75
448
647
7,852
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
327
EUR
10,539
09/20
300
FTSE
100
Index
Futures
165
GBP
10,143
09/20
93
MSCI
EAFE
Index
Futures
317
USD
28,188
09/20
91
S&P/TSX
60
Index
Futures
73
CAD
13,556
09/20
174
SPI
200
Index
Futures
65
AUD
9,575
09/20
66
TOPIX
Index
Futures
48
JPY
748,080
09/20
(294)
Short
Positions
Hang
Seng
Index
Futures
36
HKD
43,645
07/20
61
MSCI
Emerging
Markets
Index
Futures
580
USD
28,585
09/20
(397)
S&P
500
E-Mini
Index
Futures
100
USD
15,451
09/20
(277)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(183)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
1,172
AUD
1,700
09/16/20
1
Bank
of
America
USD
2,362
CAD
3,200
09/16/20
(4)
Bank
of
America
USD
2,705
EUR
2,400
09/16/20
(4)
Bank
of
America
USD
2,491
GBP
2,000
09/16/20
(11)
Bank
of
America
USD
1,227
JPY
131,000
09/16/20
(13)
Bank
of
America
CAD
148
USD
109
07/02/20
—
Bank
of
America
CHF
392
USD
414
07/01/20
—
Bank
of
America
EUR
539
USD
606
07/01/20
—
Bank
of
America
GBP
157
USD
194
07/01/20
—
Bank
of
America
HKD
1,550
USD
200
07/02/20
—
Bank
of
America
JPY
75,900
USD
704
07/01/20
1
Bank
of
New
York
USD
1,830
AUD
2,614
09/16/20
(26)
Bank
of
New
York
USD
1,751
CAD
2,344
09/16/20
(25)
Bank
of
New
York
USD
1,362
GBP
1,067
09/16/20
(39)
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
54
International
Developed
Markets
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
New
York
USD
2,412
JPY
258,184
09/16/20
(18)
Bank
of
New
York
EUR
698
USD
795
09/16/20
9
Bank
of
New
York
NOK
7,098
USD
760
09/16/20
22
Citigroup
USD
1,832
AUD
2,614
09/16/20
(27)
Citigroup
USD
1,747
CAD
2,344
09/16/20
(20)
Citigroup
USD
1,361
GBP
1,067
09/16/20
(40)
Citigroup
USD
2,412
JPY
258,184
09/16/20
(18)
Citigroup
EUR
698
USD
796
09/16/20
10
Citigroup
NOK
7,098
USD
760
09/16/20
23
JPMorgan
Chase
USD
1,830
AUD
2,614
09/16/20
(26)
JPMorgan
Chase
USD
1,747
CAD
2,344
09/16/20
(21)
JPMorgan
Chase
USD
1,361
GBP
1,067
09/16/20
(39)
JPMorgan
Chase
USD
2,410
JPY
258,184
09/16/20
(17)
JPMorgan
Chase
EUR
698
USD
796
09/16/20
10
JPMorgan
Chase
NOK
7,098
USD
762
09/16/20
24
Royal
Bank
of
Canada
USD
1,834
AUD
2,614
09/16/20
(29)
Royal
Bank
of
Canada
USD
1,750
CAD
2,344
09/16/20
(23)
Royal
Bank
of
Canada
USD
1,365
GBP
1,067
09/16/20
(43)
Royal
Bank
of
Canada
USD
2,410
JPY
258,184
09/16/20
(17)
Royal
Bank
of
Canada
EUR
698
USD
796
09/16/20
10
Royal
Bank
of
Canada
NOK
7,098
USD
765
09/16/20
28
Standard
Chartered
USD
1,831
AUD
2,614
09/16/20
(27)
Standard
Chartered
USD
1,751
CAD
2,344
09/16/20
(24)
Standard
Chartered
USD
1,361
GBP
1,067
09/16/20
(38)
Standard
Chartered
USD
2,411
JPY
258,184
09/16/20
(18)
Standard
Chartered
EUR
698
USD
795
09/16/20
9
Standard
Chartered
NOK
7,098
USD
761
09/16/20
23
State
Street
USD
1,223
SEK
11,260
09/16/20
(14)
State
Street
CHF
1,900
USD
2,015
09/16/20
5
State
Street
DKK
13,240
USD
2,021
09/16/20
22
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(384)
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
55
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Common
Stocks
Argentina
$
197
$
—
$
—
$
—
$
197
0.1
Australia
—
5,118
—
—
5,118
1.5
Austria
—
609
—
—
609
0.2
Belgium
—
1,269
—
—
1,269
0.4
Brazil
334
—
—
—
334
0.1
Canada
13,115
—
—
—
13,115
4.0
Cayman
Islands
—
1,890
—
—
1,890
0.6
China
4,242
7,079
—
—
11,321
3.4
Colombia
—
14
—
—
14
—
*
Denmark
—
7,075
—
—
7,075
2.1
Finland
—
4,168
—
—
4,168
1.3
France
—
28,687
—
—
28,687
8.7
Germany
—
14,237
—
—
14,237
4.3
Hong
Kong
—
7,158
166
—
7,324
2.2
India
166
3,289
—
—
3,455
1.0
Indonesia
—
194
—
—
194
0.1
Ireland
4,427
3,510
—
—
7,937
2.4
Israel
—
897
—
—
897
0.3
Italy
—
7,449
—
—
7,449
2.2
Japan
—
60,613
—
—
60,613
18.3
Jersey
—
188
—
—
188
0.1
Luxembourg
594
2,499
—
—
3,093
0.9
Macao
—
421
—
—
421
0.1
Malaysia
—
259
—
—
259
0.1
Mexico
752
—
—
—
752
0.2
Netherlands
1,441
12,284
—
—
13,725
4.1
New
Zealand
—
966
—
—
966
0.3
Norway
—
2,117
—
—
2,117
0.6
Portugal
—
175
—
—
175
0.1
Russia
—
1,149
—
—
1,149
0.3
Singapore
—
3,865
—
—
3,865
1.2
South
Africa
471
1,484
—
—
1,955
0.6
South
Korea
731
5,243
—
—
5,974
1.8
Spain
—
4,786
—
—
4,786
1.4
Sweden
—
5,192
—
—
5,192
1.6
Switzerland
—
26,238
—
—
26,238
7.9
Taiwan
2,862
4,363
—
—
7,225
2.2
Thailand
—
590
—
—
590
0.2
United
Kingdom
840
32,367
—
—
33,207
10.0
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
56
International
Developed
Markets
Fund
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
United
States
535
—
—
—
535
0.2
Preferred
Stocks
—
5,109
—
—
5,109
1.6
Warrants
&
Rights
25
—
—
—
25
—
*
Short-Term
Investments
—
—
—
20,653
20,653
6.2
Other
Securities
—
—
—
1,644
1,644
0.5
Total
Investments
30,732
262,551
166
22,297
315,746
95.4
Other
Assets
and
Liabilities,
Net
4.6
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
785
—
—
—
785
0.2
Foreign
Currency
Exchange
Contracts
1
196
—
—
197
0.1
A
Liabilities
Futures
Contracts
(968)
—
—
—
(968)
(0.3)
Foreign
Currency
Exchange
Contracts
—
(581)
—
—
(581)
(0.2)
Total
Other
Financial
Instruments
**
$
(182)
$
(385)
$
—
$
—
$
(567)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
a
fair
value
for
the
period
ended
June
30,
2020,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Sector
Exposure
Fair
Value
$
Common
Stocks
Consumer
Discretionary
..........................................................
37,753
Consumer
Staples
...................................................................
14,726
Energy
....................................................................................
15,465
Financial
Services
...................................................................
72,884
Health
Care
.............................................................................
20,120
Materials
and
Processing
........................................................
34,690
Producer
Durables
..................................................................
41,289
Technology
..............................................................................
35,363
Utilities
...................................................................................
16,025
Preferred
Stocks
Consumer
Discretionary
..........................................................
2,611
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
57
Technology
..............................................................................
2,498
Warrants
&
Rights
.......................................................................
25
Short-Term
Investments
................................................................
20,653
Other
Securities
...........................................................................
1,644
Total
Investments
....................................................................
315,746
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
58
International
Developed
Markets
Fund
Russell
Investment
Funds
International
Developed
Markets
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
197
Variation
margin
on
futures
contracts*
785
—
Total
$
785
$
197
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
968
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
581
Total
$
968
$
581
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
5,154
$
—
Foreign
currency
exchange
contracts
—
(893)
Total
$
5,154
$
(893)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
1,108
$
—
Foreign
currency
exchange
contracts
—
(800)
Total
$
1,108
$
(800)
*
Includes
cumulative
appreciation/depreciation
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
59
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
$
1,591
$
—
$
1,591
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
197
—
197
Total
Financial
and
Derivative
Assets
1,788
—
1,788
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(1)
—
(1)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
1,787
$
—
$
1,787
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
$
1
$
1
$
—
$
—
Bank
of
Montreal
361
—
361
—
Bank
of
New
York
31
31
—
—
Citigroup
708
32
676
—
JPMorgan
Chase
34
34
—
—
Merrill
Lynch
229
—
229
—
Morgan
Stanley
325
—
325
—
Royal
Bank
of
Canada
38
38
—
—
Standard
Chartered
32
32
—
—
State
Street
28
14
—
14
Total
$
1,787
$
182
$
1,591
$
14
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
60
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
$
581
$
—
$
581
Total
Financial
and
Derivative
Liabilities
581
—
581
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
581
$
—
$
581
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
$
32
$
1
$
—
$
31
Bank
of
New
York
108
31
—
77
Citigroup
104
32
—
72
JPMorgan
Chase
103
34
—
69
Royal
Bank
of
Canada
113
38
—
75
Standard
Chartered
107
32
—
75
State
Street
14
14
—
—
Total
$
581
$
182
$
—
$
399
*
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
61
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
359,479
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
315,746
Foreign
currency
holdings(^)
.........................................................................................................................................................
3,280
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
197
Receivables:
Dividends
and
interest
.......................................................................................................................................................
434
Dividends
from
affiliated
funds
..........................................................................................................................................
5
Fund
shares
sold
................................................................................................................................................................
28
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
820
From
broker(a)
...................................................................................................................................................................
13,382
Prepaid
expenses
...........................................................................................................................................................................
2
Total
assets
.................................................................................................................................................
333,894
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
79
Accrued
fees
to
affiliates
....................................................................................................................................................
264
Other
accrued
expenses
.....................................................................................................................................................
123
Variation
margin
on
futures
contracts
.................................................................................................................................
179
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
581
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
1,644
Total
liabilities
.............................................................................................................................................
2,870
Net
Assets
............................................................................................................................................................
$
331,024
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
62
International
Developed
Markets
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
(53,2
28
)
Shares
of
beneficial
interest
...........................................................................................................................................................
336
Additional
paid-in
capital
..............................................................................................................................................................
383,91
6
Net
Assets
............................................................................................................................................................
$
331,024
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.84
Net
assets
...............................................................................................................................................................................
$
331,024,257
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
33,646,974
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
3,274
(*)
Securities
on
loan
included
in
investments
$
1,591
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
22,297
(a)
Receivable
from
Broker
for
Futures
$
13,3
82
(#)
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
63
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
4,777
Dividends
from
affiliated
funds
.........................................................................................................................................
55
Interest
..............................................................................................................................................................................
5
Securities
lending
income
(net)
.........................................................................................................................................
4
Less
foreign
taxes
withheld
...............................................................................................................................................
(557)
Total
investment
income
...............................................................................................................................................................
4,284
Expenses
Advisory
fees
....................................................................................................................................................................
1,499
Administrative
fees
...........................................................................................................................................................
83
Custodian
fees
...................................................................................................................................................................
99
Transfer
agent
fees
............................................................................................................................................................
7
Professional
fees
...............................................................................................................................................................
52
Trustees’
fees
....................................................................................................................................................................
8
Printing
fees
......................................................................................................................................................................
28
Miscellaneous
...................................................................................................................................................................
8
Total
expenses
...............................................................................................................................................................................
1,784
Net
investment
income
(loss)
........................................................................................................................................................
2,500
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
(1,398)
Investments
in
affiliated
funds
..........................................................................................................................................
3
Futures
contracts
..............................................................................................................................................................
5,154
Foreign
currency
exchange
contracts
................................................................................................................................
(893)
Foreign
currency-related
transactions
...............................................................................................................................
2
Net
realized
gain
(loss)
..................................................................................................................................................................
2,868
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
(67,20
9
)
Investments
in
affiliated
funds
..........................................................................................................................................
1
Futures
contracts
..............................................................................................................................................................
1,108
Foreign
currency
exchange
contracts
................................................................................................................................
(800)
Foreign
currency-related
transactions
...............................................................................................................................
(1
1
)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(66,911)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(64,043)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(61,543)
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
64
International
Developed
Markets
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
2,500
$
7,866
Net
realized
gain
(loss)
......................................................................................................................
2,868
(1,509)
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(66,911)
62,497
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(61,543)
68,854
Distributions
To
shareholders
.................................................................................................................................
(1,373)
(9,905)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(1,373)
(9,905)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(3,166)
(19,439)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(66,082)
39,510
Net
Assets
Beginning
of
period
.................................................................................................................................
397,106
357,596
End
of
period
..........................................................................................................................................
$
331,024
$
397,106
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
1,227
$
11,166
1,397
$
15,22
7
Proceeds
from
reinvestment
of
distributions
121
1,373
852
9,90
5
Payments
for
shares
redeemed
(1,586)
(15,705)
(3,974)
(44,571)
Total
increase
(decrease)
(238)
$
(3,166)
(1,725)
$
(19,439)
Russell
Investment
Funds
International
Developed
Markets
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
66
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2020(1)
11.72
.07
(1.91)
(1.84)
(.04)
—
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
67
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.04)
9.84
(15.74)
331,024
1.07
1.07
1.50
42
(.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.
68
International
Developed
Markets
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020,
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
$
248,151
Administration
fees
13,786
Transfer
agent
fees
1,213
Trustee
fees
780
$
263,930
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
$
10,315
$
97,842
$
87,508
$
3
$
1
$
20,653
$
55
$
—
U.S.
Cash
Collateral
Fund
1,037
17,713
17,106
—
—
1,644
8
—
$
11,352
$
115,555
$
104,614
$
3
$
1
$
22,297
$
63
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
365,729,780
$
21,595,867
$
(72,146,799)
$
(50,550,932)
Russell
Investment
Funds
Strategic
Bond
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
Strategic
Bond
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
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2020
$
1,050
.50
$
1,021
.48
Expenses
Paid
During
Period*
$
3
.47
$
3
.42
*
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
182/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
70
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Long-Term
Investments
-
85.4%
Asset-Backed
Securities
-
6.9%
ACE
Securities
Corp.
Home
Equity
Loan
Trust
Series
2005-HE3
Class
M2
3.181%
due
05/25/35
(Ê)
61
61
ACE
Securities
Corp.
Mortgage
Loan
Trust
Series
2007-D1
Class
A2
6.336%
due
02/25/38
(~)(Ê)(Þ)
526
495
Ally
Auto
Receivables
Trust
Series
2019-2
Class
A2
2.340%
due
06/15/22
881
886
AmeriCredit
Automobile
Receivables
Trust
Series
2019-1
Class
A2A
2.930%
due
06/20/22
369
370
Ameriquest
Mortgage
Securities,
Inc.
Asset-Backed
Pass-Through
Certificates
Series
2005-R1
Class
M4
3.596%
due
03/25/35
(Ê)
830
784
Applebee's
Funding
LLC
/
IHOP
Funding
LLC
Series
2019-1A
Class
A2I
4.194%
due
06/07/49
(Þ)
340
301
Asset
Backed
Securities
Corp.
Home
Equity
Loan
Trust
Series
2007-HE1
Class
A4
0.308%
due
12/25/36
(Ê)
429
394
Avis
Budget
Rental
Car
Funding
LLC
Series
2019-2A
Class
A
3.350%
due
09/22/25
(Þ)
600
608
BCAP
LLC
Trust
Series
2014-RR3
Class
3A2
2.629%
due
07/26/36
(~)(Ê)(Þ)
817
717
Series
2014-RR3
Class
5A2
2.639%
due
10/26/36
(~)(Ê)(Þ)
519
455
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
Series
2016-1A
Class
AA
2.487%
due
12/16/41
(~)(Ê)(Þ)
732
682
BNC
Mortgage
Loan
Trust
Series
2007-1
Class
A4
2.646%
due
03/25/37
(Ê)
773
725
CAL
Funding
II,
Ltd.
Series
2018-2A
Class
A
4.340%
due
09/25/43
(Þ)
244
247
CAL
Funding
III,
Ltd.
Series
2017-1A
Class
A
3.620%
due
06/25/42
(Þ)
554
554
Carlyle
Global
Market
Strategies
CLO,
Ltd.
Series
2017-2A
Class
AR
2.025%
due
01/18/29
(Ê)(Þ)
761
748
CarMax
Auto
Owner
Trust
Series
2017-3
Class
A3
1.970%
due
04/15/22
410
412
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2018-1
Class
A3
2.480%
due
11/15/22
1,423
1,438
Cedar
Funding,
Ltd.
Series
2018-5A
Class
A1R
2.235%
due
07/17/31
(Ê)(Þ)
1,600
1,561
Citigroup
Mortgage
Loan
Trust,
Inc.
Series
2007-WFH2
Class
M2
2.936%
due
03/25/37
(Ê)
1,490
1,390
Conseco
Financial
Corp.
Series
1998-2
Class
M1
6.940%
due
12/01/28
(~)(Ê)
1,302
1,270
Countrywide
Asset-Backed
Certificates
Series
2007-4
Class
A4W
4.683%
due
04/25/47
1,542
1,651
Dividend
Solar
Loans
LLC
Series
2019-1
Class
A
3.670%
due
08/22/39
(Þ)
339
341
Dryden
50
Senior
Loan
Fund
Series
2017-50A
Class
A1
2.439%
due
07/15/30
(Ê)(Þ)
1,230
1,209
Education
Loan
Asset-Backed
Trust
I
Series
2013-1
Class
A2
0.968%
due
04/26/32
(Ê)(Þ)
580
568
Fieldstone
Mortgage
Investment
Trust
Series
2004-4
Class
M3
2.118%
due
10/25/35
(Ê)
319
317
Flatiron
CLO,
Ltd.
Series
2017-1A
Class
A
1.642%
due
05/15/30
(Ê)(Þ)
1,000
983
Goldentree
Loan
Management
US
CLO
2,
Ltd.
Series
2017-2A
Class
A
2.285%
due
11/28/30
(Ê)(Þ)
1,860
1,821
Series
2020-7A
Class
A
2.308%
due
04/20/31
(Ê)(Þ)
1,147
1,150
Greenpoint
Manufactured
Housing
Contract
Trust
Series
2000-4
Class
A3
2.190%
due
08/21/31
(Ê)
800
740
Home
Equity
Asset
Trust
Series
2005-9
Class
M1
0.578%
due
04/25/36
(Ê)
315
310
Series
2006-4
Class
2A4
0.448%
due
08/25/36
(Ê)
522
510
HSI
Asset
Securitization
Corp.
Trust
Series
2007-OPT1
Class
1A
2.626%
due
12/25/36
(Ê)
237
191
LCM
XXIII,
Ltd.
Series
2020-23A
Class
A1R
2.205%
due
10/20/29
(Ê)(Þ)
1,020
998
LCM
XXV,
Ltd.
Series
2017-25A
Class
A
2.345%
due
07/20/30
(Ê)(Þ)
1,124
1,099
Legacy
Mortgage
Asset
Trust
Series
2019-GS4
Class
A1
3.438%
due
05/25/59
(~)(Ê)(Þ)
419
418
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
71
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Long
Beach
Mortgage
Loan
Trust
Series
2004-1
Class
M1
3.236%
due
02/25/34
(Ê)
814
782
Series
2004-4
Class
M1
3.386%
due
10/25/34
(Ê)
578
560
Madison
Park
Funding
XIII,
Ltd.
Series
2018-13A
Class
AR2
2.085%
due
04/19/30
(Ê)(Þ)
574
565
Madison
Park
Funding
XVIII,
Ltd.
Series
2017-18A
Class
A1R
2.299%
due
10/21/30
(Ê)(Þ)
872
858
Madison
Park
Funding
XXVI,
Ltd.
Series
2017-26A
Class
AR
2.041%
due
07/29/30
(~)(Ê)(Þ)
780
762
Magnetite
XVIII,
Ltd.
Series
2018-18A
Class
AR
1.472%
due
11/15/28
(Ê)(Þ)
1,488
1,466
Navient
Student
Loan
Trust
Series
2015-1
Class
A2
0.768%
due
04/25/40
(Ê)
166
159
New
Century
Home
Equity
Loan
Trust
Series
2005-B
Class
M1
0.648%
due
10/25/35
(Ê)
690
654
Option
One
Mortgage
Loan
Trust
Series
2007-FXD1
Class
3A4
5.860%
due
01/25/37
(~)(Ê)
736
749
Park
Place
Securities,
Inc.
Asset-Backed
Pass-Through
Certificates
Series
2005-WHQ1
Class
M5
1.293%
due
03/25/35
(Ê)
1,290
1,237
Popular
ABS
Mortgage
Pass-Through
Trust
Series
2006-C
Class
A4
2.736%
due
07/25/36
(Ê)
255
254
Series
2006-D
Class
A3
2.746%
due
11/25/36
(Ê)
1,114
1,088
Preston
Ridge
Partners
Mortgage
LLC
Series
2019-2A
Class
A1
3.967%
due
04/25/24
(~)(Ê)(Þ)
614
618
Series
2020-1A
Class
A1
2.981%
due
02/25/25
(~)(Ê)(Þ)
2,642
2,627
RAMP
Trust
Series
2006-RZ1
Class
M4
3.055%
due
03/25/36
(Ê)
960
905
Renaissance
Home
Equity
Loan
Trust
Series
2006-1
Class
AF6
5.746%
due
05/25/36
(~)(Ê)
95
61
Riserva
CLO,
Ltd.
Series
2019-3A
Class
AR
2.275%
due
10/18/28
(Ê)(Þ)
940
926
SBA
Small
Business
Investment
Cos.
Series
2017-10A
Class
1
2.845%
due
03/10/27
185
198
Series
2019-10A
Class
1
3.113%
due
03/10/29
181
193
Shackleton
CLO,
Ltd.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2018-4RA
Class
A1A
2.311%
due
04/13/31
(Ê)(Þ)
930
898
SLM
Private
Credit
Student
Loan
Trust
Series
2005-B
Class
A4
2.941%
due
06/15/39
(Ê)
175
164
Series
2006-A
Class
A5
2.901%
due
06/15/39
(Ê)
178
165
SMB
Private
Education
Loan
Trust
Series
2019-B
Class
A2B
1.185%
due
06/15/37
(Ê)(Þ)
190
186
SoFi
Professional
Loan
Program
Trust
Series
2019-A
Class
A2FX
3.690%
due
06/15/48
(Þ)
730
765
SpringCastle
Funding
Asset-Backed
Notes
Series
2019-AA
Class
A
3.200%
due
05/27/36
(Þ)
3,721
3,762
Structured
Asset
Investment
Loan
Trust
Series
2005-HE3
Class
M1
0.888%
due
09/25/35
(Ê)
500
492
Sunrun
Atlas
Issuer
LLC
Series
2019-2
Class
A
3.610%
due
02/01/55
(Þ)
593
586
Textainer
Marine
Containers,
Ltd.
Series
2017-1A
Class
A
3.720%
due
05/20/42
(Þ)
716
711
THL
Credit
Wind
River
CLO,
Ltd.
Series
2017-2A
Class
AR
2.365%
due
10/18/30
(Ê)(Þ)
1,004
983
Towd
Point
Mortgage
Trust
Series
2016-3
Class
A1
2.250%
due
04/25/56
(~)(Ê)(Þ)
166
167
Series
2017-1
Class
A1
2.750%
due
10/25/56
(~)(Ê)(Þ)
810
828
Series
2017-3
Class
A1
2.750%
due
07/25/57
(~)(Ê)(Þ)
397
407
Series
2017-4
Class
A1
2.750%
due
06/25/57
(~)(Ê)(Þ)
847
872
Series
2018-4
Class
A1
3.000%
due
06/25/58
(~)(Ê)(Þ)
1,309
1,382
Series
2019-1
Class
A1
3.750%
due
03/25/58
(~)(Ê)(Þ)
1,194
1,286
Series
2019-4
Class
A1
2.900%
due
10/25/59
(~)(Ê)(Þ)
1,643
1,728
Triton
Container
Finance
IV
LLC
Series
2017-2A
Class
A
3.620%
due
08/20/42
(Þ)
482
480
Triton
Container
Finance
V
LLC
Series
2018-1A
Class
A
3.950%
due
03/20/43
(Þ)
192
192
Triton
Container
Finance
VI
LLC
Series
2017-1A
Class
A
3.520%
due
06/20/42
(Þ)
532
531
United
States
Small
Business
Administration
Series
2019-20D
Class
1
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
72
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.980%
due
04/01/39
67
71
Series
2019-25G
Class
1
2.690%
due
07/01/44
69
74
Voya
CLO,
Ltd.
Series
2020-2A
Class
A1RR
2.155%
due
04/17/30
(Ê)(Þ)
2,464
2,401
60,197
Corporate
Bonds
and
Notes
-
25.4%
3M
Co.
2.750%
due
03/01/22
305
316
2.375%
due
08/26/29
70
75
3.050%
due
04/15/30
30
34
3.700%
due
04/15/50
170
202
ABB
Finance
USA,
Inc.
2.875%
due
05/08/22
720
748
Abbott
Laboratories
3.750%
due
11/30/26
151
176
4.750%
due
11/30/36
60
81
4.900%
due
11/30/46
80
115
AbbVie,
Inc.
3.450%
due
03/15/22
(Þ)
285
297
3.250%
due
10/01/22
(Þ)
706
739
2.300%
due
11/21/22
(Þ)
440
455
3.750%
due
11/14/23
30
33
2.600%
due
11/21/24
(Þ)
390
415
3.800%
due
03/15/25
(Þ)
60
67
3.600%
due
05/14/25
(Þ)
60
67
2.950%
due
11/21/26
(Þ)
100
109
3.200%
due
11/21/29
(Þ)
480
534
4.550%
due
03/15/35
(Þ)
10
12
4.250%
due
11/21/49
(Þ)
20
24
Aetna,
Inc.
2.800%
due
06/15/23
30
32
Air
Lease
Corp.
3.375%
due
07/01/25
80
80
Series
GMTN
3.750%
due
06/01/26
881
889
Alimentation
Couche-Tard,
Inc.
3.550%
due
07/26/27
(Þ)
702
753
Ally
Financial,
Inc.
8.000%
due
11/01/31
554
703
Altria
Group,
Inc.
3.490%
due
02/14/22
40
42
2.850%
due
08/09/22
170
177
3.800%
due
02/14/24
110
120
2.350%
due
05/06/25
30
32
4.400%
due
02/14/26
350
403
10.200%
due
02/06/39
482
797
3.875%
due
09/16/46
70
70
5.950%
due
02/14/49
100
131
Amazon.com,
Inc.
0.800%
due
06/03/25
140
141
1.200%
due
06/03/27
190
191
1.500%
due
06/03/30
160
162
4.950%
due
12/05/44
60
85
2.500%
due
06/03/50
140
142
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
WI
5.200%
due
12/03/25
100
123
3.150%
due
08/22/27
220
252
3.875%
due
08/22/37
50
62
4.050%
due
08/22/47
70
91
4.250%
due
08/22/57
30
40
Ambac
Assurance
Corp.
5.100%
due
12/31/99
(Þ)
1
1
Ambac
LSNI
LLC
6.000%
due
02/12/23
(Ê)(Þ)
3,716
3,670
American
Honda
Finance
Corp.
Series
GMTN
1.700%
due
09/09/21
797
809
American
International
Group,
Inc.
2.500%
due
06/30/25
70
74
3.750%
due
07/10/25
110
122
American
Tower
Corp.
3.450%
due
09/15/21
701
725
Amgen,
Inc.
3.625%
due
05/22/24
10
11
4.400%
due
05/01/45
100
124
Andeavor
LLC
Series
WI
5.125%
due
12/15/26
225
234
Anheuser-Busch
Cos.
LLC
/
Anheuser-
Busch
InBev
Worldwide,
Inc.
3.650%
due
02/01/26
470
528
4.900%
due
02/01/46
70
86
Anheuser-Busch
InBev
Finance,
Inc.
2.625%
due
01/17/23
716
752
3.300%
due
02/01/23
180
190
Anheuser-Busch
InBev
Worldwide,
Inc.
4.150%
due
01/23/25
360
408
4.000%
due
04/13/28
20
23
4.750%
due
01/23/29
90
109
3.500%
due
06/01/30
70
79
4.350%
due
06/01/40
160
182
5.550%
due
01/23/49
160
214
4.500%
due
06/01/50
290
346
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
84
3.350%
due
12/01/24
30
33
3.650%
due
12/01/27
110
125
Aon
Corp.
8.205%
due
01/01/27
172
209
Apache
Corp.
3.250%
due
04/15/22
16
16
4.375%
due
10/15/28
70
62
4.250%
due
01/15/30
20
17
5.100%
due
09/01/40
433
356
4.750%
due
04/15/43
368
296
4.250%
due
01/15/44
120
90
Apple,
Inc.
2.400%
due
05/03/23
716
757
1.125%
due
05/11/25
280
285
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
73
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.450%
due
08/04/26
110
120
4.650%
due
02/23/46
100
137
ArcelorMittal
SA
6.125%
due
06/01/25
170
184
Ares
Capital
Corp.
3.500%
due
02/10/23
261
263
3.250%
due
07/15/25
914
887
AT&T,
Inc.
3.000%
due
02/15/22
40
42
3.875%
due
01/15/26
685
771
3.800%
due
02/15/27
150
169
2.300%
due
06/01/27
240
248
5.250%
due
03/01/37
190
235
4.350%
due
06/15/45
100
112
Athene
Holding,
Ltd.
4.125%
due
01/12/28
630
650
Avnet,
Inc.
4.875%
due
12/01/22
410
439
Avon
Products,
Inc.
7.000%
due
03/15/23
302
300
BAC
Capital
Trust
XIV
Series
G
4.000%
due
09/29/49
(Ê)(ƒ)
70
63
Bank
of
America
Corp.
3.550%
due
03/05/24
(Ê)
130
139
4.000%
due
01/22/25
175
193
3.366%
due
01/23/26
(Ê)
325
355
4.250%
due
10/22/26
340
390
4.271%
due
07/23/29
(Ê)
200
235
3.974%
due
02/07/30
(Ê)
500
582
2.592%
due
04/29/31
(Ê)
140
148
4.330%
due
03/15/50
(Ê)
30
39
4.083%
due
03/20/51
(Ê)
480
599
Series
AA
6.100%
due
12/31/49
(Ê)(ƒ)
10
11
Series
GMTN
3.300%
due
01/11/23
460
490
4.450%
due
03/03/26
30
34
3.500%
due
04/19/26
790
889
3.593%
due
07/21/28
(Ê)
260
292
Series
WI
3.004%
due
12/20/23
(Ê)
42
44
3.419%
due
12/20/28
(Ê)
482
537
Bank
of
New
York
Mellon
Corp.
(The)
1.600%
due
04/24/25
70
72
BankUnited
,
Inc.
4.875%
due
11/17/25
661
722
Barrick
NA
Finance
LLC
5.700%
due
05/30/41
130
175
BAT
Capital
Corp.
Series
WI
3.557%
due
08/15/27
445
481
4.540%
due
08/15/47
160
174
Bayer
US
Finance
LLC
3.375%
due
10/08/24
(Þ)
726
792
Becton
Dickinson
and
Co.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.363%
due
06/06/24
180
194
3.734%
due
12/15/24
706
777
4.685%
due
12/15/44
8
10
Bed
Bath
&
Beyond,
Inc.
5.165%
due
08/01/44
186
105
Berkshire
Hathaway
Energy
Co.
4.050%
due
04/15/25
(Þ)
699
796
Series
WI
2.800%
due
01/15/23
245
259
Berkshire
Hathaway
Finance
Corp.
4.200%
due
08/15/48
621
788
4.250%
due
01/15/49
130
167
Berkshire
Hathaway,
Inc.
3.125%
due
03/15/26
694
777
Blue
Racer
Midstream
LLC
/
Blue
Racer
Finance
Corp.
6.125%
due
11/15/22
(Þ)
20
20
BMW
US
Capital
LLC
1.850%
due
09/15/21
(Þ)
20
20
Boardwalk
Pipelines,
LP
4.800%
due
05/03/29
710
756
Boeing
Co.
(The)
2.125%
due
03/01/22
272
273
4.875%
due
05/01/25
390
425
3.100%
due
05/01/26
20
20
2.700%
due
02/01/27
40
39
2.800%
due
03/01/27
30
29
3.200%
due
03/01/29
120
119
5.150%
due
05/01/30
190
212
3.250%
due
02/01/35
450
410
3.550%
due
03/01/38
30
27
5.705%
due
05/01/40
160
181
3.750%
due
02/01/50
60
54
5.805%
due
05/01/50
370
437
5.930%
due
05/01/60
100
118
BP
Capital
Markets
America,
Inc.
3.245%
due
05/06/22
10
10
2.520%
due
09/19/22
250
260
2.937%
due
04/06/23
10
11
2.750%
due
05/10/23
513
542
3.216%
due
11/28/23
290
312
3.790%
due
02/06/24
30
33
3.410%
due
02/11/26
200
221
3.119%
due
05/04/26
120
131
3.633%
due
04/06/30
80
90
3.000%
due
02/24/50
320
315
Brighthouse
Financial,
Inc.
Series
WI
4.700%
due
06/22/47
829
758
Bristol-Myers
Squibb
Co.
2.250%
due
08/15/21
(Þ)
70
71
2.600%
due
05/16/22
(Þ)
90
94
3.550%
due
08/15/22
(Þ)
30
32
2.900%
due
07/26/24
(Þ)
400
433
3.875%
due
08/15/25
(Þ)
230
262
3.200%
due
06/15/26
(Þ)
190
213
3.900%
due
02/20/28
(Þ)
380
447
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
74
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.400%
due
07/26/29
(Þ)
170
198
5.000%
due
08/15/45
(Þ)
80
113
Broadcom,
Inc.
2.250%
due
11/15/23
(Þ)
180
186
4.700%
due
04/15/25
(Þ)
280
315
3.150%
due
11/15/25
(Þ)
220
234
Buckeye
Partners,
LP
4.350%
due
10/15/24
310
293
4.125%
due
12/01/27
149
142
5.850%
due
11/15/43
103
89
Bunge,
Ltd.
Finance
Corp.
3.000%
due
09/25/22
531
553
4.350%
due
03/15/24
220
240
Burlington
Northern
Santa
Fe
LLC
3.400%
due
09/01/24
220
242
4.550%
due
09/01/44
461
606
4.150%
due
04/01/45
100
124
Cameron
LNG
LLC
2.902%
due
07/15/31
(Þ)
40
43
3.302%
due
01/15/35
(Þ)
230
253
Capital
One
Financial
Corp.
3.200%
due
02/05/25
748
800
Cargill,
Inc.
1.375%
due
07/23/23
(Þ)
110
112
Carrier
Global
Corp.
1.923%
due
02/15/23
(Þ)
40
41
2.242%
due
02/15/25
(Þ)
90
92
2.493%
due
02/15/27
(Þ)
20
20
2.722%
due
02/15/30
(Þ)
160
160
2.700%
due
02/15/31
(Þ)
50
50
3.377%
due
04/05/40
(Þ)
60
58
3.577%
due
04/05/50
(Þ)
60
59
Caterpillar
Financial
Services
Corp.
0.950%
due
05/13/22
571
578
1.950%
due
11/18/22
761
787
Caterpillar,
Inc.
4.750%
due
05/15/64
603
837
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp.
3.849%
due
04/15/23
242
261
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
4.500%
due
08/15/30
(Þ)
10
10
4.500%
due
05/01/32
(Þ)
270
273
CDK
Global,
Inc.
Series
WI
5.000%
due
10/15/24
295
313
Centene
Corp.
Series
WI
4.625%
due
12/15/29
60
64
3.375%
due
02/15/30
50
50
CenturyLink,
Inc.
Series
T
5.800%
due
03/15/22
366
376
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.050%
due
03/30/29
240
283
5.375%
due
04/01/38
80
97
5.750%
due
04/01/48
350
436
4.800%
due
03/01/50
40
45
Series
WI
4.908%
due
07/23/25
530
608
6.384%
due
10/23/35
20
26
6.484%
due
10/23/45
60
80
6.834%
due
10/23/55
20
27
Chevron
Corp.
2.355%
due
12/05/22
784
815
1.554%
due
05/11/25
130
134
2.954%
due
05/16/26
70
78
1.995%
due
05/11/27
50
52
3.078%
due
05/11/50
10
11
Chubb
INA
Holdings,
Inc.
3.350%
due
05/03/26
30
34
Cigna
Corp.
6.125%
due
11/15/41
(Þ)
335
478
Series
WI
3.400%
due
09/17/21
60
62
3.750%
due
07/15/23
170
185
4.125%
due
11/15/25
130
149
4.375%
due
10/15/28
460
544
Cimarex
Energy
Co.
4.375%
due
06/01/24
10
11
3.900%
due
05/15/27
210
211
4.375%
due
03/15/29
200
206
Cintas
Corp.
No.
2
2.900%
due
04/01/22
60
62
3.700%
due
04/01/27
70
79
Citigroup,
Inc.
1.678%
due
05/15/24
(Ê)
130
133
3.106%
due
04/08/26
(Ê)
100
107
4.450%
due
09/29/27
610
695
4.412%
due
03/31/31
(Ê)
160
189
2.572%
due
06/03/31
(Ê)
310
320
8.125%
due
07/15/39
550
952
5.300%
due
05/06/44
101
134
4.750%
due
05/18/46
220
281
4.650%
due
07/23/48
55
72
Series
9-RG
4.650%
due
07/30/45
147
189
Series
P
5.950%
due
12/31/49
(Ê)(ƒ)
260
258
Cliffs
Natural
Resources,
Inc.
6.250%
due
10/01/40
238
148
CME
Group,
Inc.
5.300%
due
09/15/43
30
44
CNH
Industrial
Capital
LLC
3.875%
due
10/15/21
250
256
4.200%
due
01/15/24
760
810
Coca-Cola
Co.
(The)
2.950%
due
03/25/25
60
66
3.375%
due
03/25/27
90
103
1.450%
due
06/01/27
130
134
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
75
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.125%
due
03/25/40
20
25
2.500%
due
06/01/40
10
10
4.200%
due
03/25/50
260
341
2.600%
due
06/01/50
50
51
Comcast
Cable
Communications
Holdings,
Inc.
9.455%
due
11/15/22
583
709
Comcast
Corp.
2.750%
due
03/01/23
500
532
3.700%
due
04/15/24
260
289
3.100%
due
04/01/25
10
11
3.950%
due
10/15/25
230
264
3.150%
due
03/01/26
80
90
3.300%
due
04/01/27
50
56
4.150%
due
10/15/28
350
421
3.400%
due
04/01/30
70
80
4.250%
due
10/15/30
120
147
6.500%
due
11/15/35
90
137
6.550%
due
07/01/39
200
302
3.250%
due
11/01/39
10
11
3.750%
due
04/01/40
10
12
3.400%
due
07/15/46
20
22
4.000%
due
03/01/48
20
25
4.700%
due
10/15/48
30
40
3.450%
due
02/01/50
110
125
Concho
Resources,
Inc.
4.375%
due
01/15/25
90
93
3.750%
due
10/01/27
150
160
4.300%
due
08/15/28
90
99
Consolidated
Edison
Co.
of
New
York,
Inc.
Series
20A
3.350%
due
04/01/30
50
57
Series
20B
3.950%
due
04/01/50
30
36
Constellation
Brands,
Inc.
4.750%
due
11/15/24
40
46
Continental
Airlines
Pass-Through
Trust
Series
071A
Class
A
5.983%
due
04/19/22
67
63
Continental
Resources,
Inc.
4.500%
due
04/15/23
328
314
3.800%
due
06/01/24
266
251
4.900%
due
06/01/44
10
8
Series
WI
4.375%
due
01/15/28
257
226
Costco
Wholesale
Corp.
1.375%
due
06/20/27
200
204
1.600%
due
04/20/30
120
121
Covidien
International
Finance
SA
3.200%
due
06/15/22
703
737
Credit
Suisse
Group
AG
2.950%
due
04/09/25
250
271
Crown
Castle
International
Corp.
4.875%
due
04/15/22
299
319
5.250%
due
01/15/23
203
226
Crown
Cork
&
Seal
Co.,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
7.375%
due
12/15/26
133
156
CVS
Health
Corp.
2.750%
due
12/01/22
90
94
3.700%
due
03/09/23
260
279
2.625%
due
08/15/24
200
214
4.100%
due
03/25/25
190
215
3.625%
due
04/01/27
40
45
4.300%
due
03/25/28
590
690
3.250%
due
08/15/29
200
221
3.750%
due
04/01/30
110
126
4.780%
due
03/25/38
70
87
4.125%
due
04/01/40
40
47
5.125%
due
07/20/45
140
180
5.050%
due
03/25/48
325
423
DAE
Funding
LLC
5.750%
due
11/15/23
(Þ)
20
19
DCP
Midstream
Operating,
LP
6.450%
due
11/03/36
(Þ)
30
27
Deere
&
Co.
3.100%
due
04/15/30
20
23
3.750%
due
04/15/50
150
184
Delhaize
America,
Inc.
9.000%
due
04/15/31
154
237
Delta
Air
Lines
Pass-Through
Trust
7.000%
due
05/01/25
(Þ)
1,412
1,457
Series
071A
Class
A
6.821%
due
08/10/22
32
31
Series
2002-1
6.718%
due
01/02/23
64
63
Delta
Air
Lines,
Inc.
3.625%
due
03/15/22
470
445
3.800%
due
04/19/23
30
27
2.900%
due
10/28/24
166
135
7.375%
due
01/15/26
200
193
4.375%
due
04/19/28
136
113
Devon
Energy
Corp.
5.850%
due
12/15/25
440
486
7.875%
due
09/30/31
150
176
5.000%
due
06/15/45
180
161
Diageo
Investment
Corp.
2.875%
due
05/11/22
90
94
Diamondback
Energy,
Inc.
3.500%
due
12/01/29
110
106
Series
WI
5.375%
due
05/31/25
30
31
Discover
Bank
2.450%
due
09/12/24
742
778
Series
BKNT
2.700%
due
02/06/30
815
821
Discover
Financial
Services
3.850%
due
11/21/22
703
745
DISH
DBS
Corp.
Series
WI
5.875%
due
11/15/24
150
149
7.750%
due
07/01/26
30
32
Dollar
General
Corp.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
76
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.250%
due
04/15/23
10
11
Dominion
Energy,
Inc.
7.000%
due
06/15/38
20
28
Duke
Energy
Carolinas
LLC
5.300%
due
02/15/40
30
42
4.000%
due
09/30/42
100
120
Eaton
Corp.
2.750%
due
11/02/22
150
158
4.150%
due
11/02/42
40
47
Edison
International
4.125%
due
03/15/28
718
759
EMC
Corp.
3.375%
due
06/01/23
374
378
Enable
Midstream
Partners,
LP
4.150%
due
09/15/29
762
668
Enbridge
Energy
Partners,
LP
7.375%
due
10/15/45
484
692
Energy
Transfer
Operating,
LP
5.875%
due
01/15/24
653
730
4.500%
due
04/15/24
100
108
2.900%
due
05/15/25
30
31
5.250%
due
04/15/29
30
33
3.750%
due
05/15/30
340
336
6.250%
due
04/15/49
30
32
Series
10Y
4.950%
due
06/15/28
40
43
Series
F
6.750%
due
12/31/99
(Ê)(ƒ)
90
76
Energy
Transfer
Partners,
LP
/
Regency
Energy
Finance
Corp.
5.000%
due
10/01/22
516
549
EnLink
Midstream
Partners,
LP
4.400%
due
04/01/24
193
160
4.150%
due
06/01/25
207
159
Enterprise
Products
Operating
LLC
3.900%
due
02/15/24
30
33
4.150%
due
10/16/28
310
354
2.800%
due
01/31/30
100
105
7.550%
due
04/15/38
20
28
4.850%
due
03/15/44
20
23
4.200%
due
01/31/50
160
177
3.700%
due
01/31/51
70
73
Series
D
6.875%
due
03/01/33
624
828
EOG
Resources,
Inc.
4.150%
due
01/15/26
40
46
4.375%
due
04/15/30
20
24
3.900%
due
04/01/35
140
163
4.950%
due
04/15/50
50
65
EQM
Midstream
Partners,
LP
4.125%
due
12/01/26
450
409
EQT
Corp.
3.000%
due
10/01/22
295
274
6.125%
due
02/01/25
166
165
3.900%
due
10/01/27
308
251
Exelon
Corp.
3.497%
due
06/01/22
245
256
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
WI
3.950%
due
06/15/25
489
549
Exelon
Generation
Co.
LLC
5.600%
due
06/15/42
615
690
Exxon
Mobil
Corp.
2.726%
due
03/01/23
778
818
1.571%
due
04/15/23
20
21
2.992%
due
03/19/25
320
348
3.043%
due
03/01/26
60
66
3.482%
due
03/19/30
120
137
4.114%
due
03/01/46
40
48
4.327%
due
03/19/50
10
13
FedEx
Corp.
4.500%
due
02/01/65
226
234
FirstEnergy
Corp.
Series
A
1.600%
due
01/15/26
50
50
Series
B
4.250%
due
03/15/23
100
108
3.900%
due
07/15/27
370
418
Series
C
7.375%
due
11/15/31
550
803
Ford
Holdings
LLC
9.300%
due
03/01/30
140
157
Ford
Motor
Co.
8.500%
due
04/21/23
10
11
9.000%
due
04/22/25
30
32
7.450%
due
07/16/31
446
469
4.750%
due
01/15/43
194
153
7.400%
due
11/01/46
230
224
Ford
Motor
Credit
Co.
LLC
5.875%
due
08/02/21
200
202
3.096%
due
05/04/23
739
700
4.271%
due
01/09/27
169
158
3.815%
due
11/02/27
181
165
5.113%
due
05/03/29
304
297
Series
FXD
3.813%
due
10/12/21
200
197
Series
GMTN
4.389%
due
01/08/26
148
140
Fox
Corp.
Series
WI
4.709%
due
01/25/29
30
36
5.476%
due
01/25/39
270
361
Freeport-McMoRan,
Inc.
3.550%
due
03/01/22
10
10
4.550%
due
11/14/24
10
10
5.400%
due
11/14/34
590
583
5.450%
due
03/15/43
260
255
Fresenius
Medical
Care
US
Finance
II,
Inc.
5.875%
due
01/31/22
(Þ)
236
250
4.750%
due
10/15/24
(Þ)
110
119
General
Dynamics
Corp.
3.250%
due
04/01/25
40
44
3.500%
due
05/15/25
20
22
4.250%
due
04/01/40
10
12
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
77
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.250%
due
04/01/50
60
78
General
Electric
Co.
3.450%
due
05/01/27
20
21
3.625%
due
05/01/30
50
50
4.250%
due
05/01/40
60
59
4.350%
due
05/01/50
60
59
Series
GMTN
6.875%
due
01/10/39
511
628
Series
MTNA
6.750%
due
03/15/32
619
758
General
Motors
Co.
4.875%
due
10/02/23
671
716
5.400%
due
10/02/23
40
43
6.125%
due
10/01/25
100
112
6.250%
due
10/02/43
110
117
General
Motors
Financial
Co.,
Inc.
4.375%
due
09/25/21
20
21
4.200%
due
11/06/21
100
103
4.250%
due
05/15/23
10
10
4.350%
due
01/17/27
850
879
Genworth
Holdings,
Inc.
7.625%
due
09/24/21
169
158
4.900%
due
08/15/23
324
259
Georgia
Power
Co.
2.850%
due
05/15/22
250
260
Gilead
Sciences,
Inc.
3.650%
due
03/01/26
90
103
4.750%
due
03/01/46
100
135
GlaxoSmithKline
Capital,
Inc.
2.800%
due
03/18/23
449
475
Glencore
Canada
Corp.
6.200%
due
06/15/35
631
764
Glencore
Funding
LLC
4.125%
due
03/12/24
(Þ)
410
439
4.625%
due
04/29/24
(Þ)
40
44
4.000%
due
03/27/27
(Þ)
330
354
3.875%
due
10/27/27
(Þ)
60
64
GLP
Capital,
LP
/
GLP
Financing
II,
Inc.
5.375%
due
11/01/23
80
85
5.375%
due
04/15/26
653
714
Goldman
Sachs
Capital
I
6.345%
due
02/15/34
185
254
Goldman
Sachs
Group,
Inc.
(The)
5.250%
due
07/27/21
380
399
3.200%
due
02/23/23
70
74
3.850%
due
07/08/24
150
165
3.500%
due
04/01/25
150
164
3.272%
due
09/29/25
(Ê)
350
377
4.250%
due
10/21/25
310
349
3.500%
due
11/16/26
90
99
3.691%
due
06/05/28
(Ê)
200
224
4.223%
due
05/01/29
(Ê)
50
58
6.750%
due
10/01/37
410
591
4.411%
due
04/23/39
(Ê)
100
122
6.250%
due
02/01/41
160
239
5.150%
due
05/22/45
200
264
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.750%
due
10/21/45
250
328
4.000%
due
12/29/49
(Ê)(ƒ)
3
3
Guardian
Life
Global
Funding
1.100%
due
06/23/25
(Þ)
50
50
GUSAP
III,
LP
4.250%
due
01/21/30
(Þ)
837
821
Halliburton
Co.
3.800%
due
11/15/25
5
5
4.850%
due
11/15/35
130
137
Hanesbrands,
Inc.
4.625%
due
05/15/24
(Þ)
10
10
5.375%
due
05/15/25
(Þ)
80
81
4.875%
due
05/15/26
(Þ)
70
71
Harman
International
Industries,
Inc.
4.150%
due
05/15/25
755
821
HCA,
Inc.
5.000%
due
03/15/24
50
56
5.375%
due
02/01/25
40
43
4.500%
due
02/15/27
40
45
5.625%
due
09/01/28
110
123
5.875%
due
02/01/29
80
91
4.125%
due
06/15/29
269
297
3.500%
due
09/01/30
40
39
5.500%
due
06/15/47
463
563
Hershey
Co.
(The)
0.900%
due
06/01/25
30
30
Hilton
Domestic
Operating
Co.,
Inc.
5.375%
due
05/01/25
(Þ)
120
120
5.750%
due
05/01/28
(Þ)
40
40
HollyFrontier
Corp.
5.875%
due
04/01/26
746
825
Home
Depot,
Inc.
(The)
3.250%
due
03/01/22
525
551
2.625%
due
06/01/22
243
254
2.500%
due
04/15/27
80
88
3.900%
due
12/06/28
10
12
2.700%
due
04/15/30
80
88
3.300%
due
04/15/40
110
125
3.900%
due
06/15/47
20
24
3.350%
due
04/15/50
270
308
Honeywell
International,
Inc.
1.350%
due
06/01/25
80
82
Host
Hotels
&
Resorts,
LP
3.875%
due
04/01/24
790
808
HSBC
USA,
Inc.
7.200%
due
07/15/97
457
707
Humana,
Inc.
3.150%
due
12/01/22
10
10
4.500%
due
04/01/25
20
23
3.950%
due
03/15/27
200
227
4.625%
due
12/01/42
20
25
4.950%
due
10/01/44
20
26
4.800%
due
03/15/47
10
13
Hyatt
Hotels
Corp.
5.375%
due
04/23/25
763
809
4.850%
due
03/15/26
230
242
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
78
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Intel
Corp.
3.700%
due
07/29/25
20
23
4.600%
due
03/25/40
60
79
4.750%
due
03/25/50
360
507
4.950%
due
03/25/60
130
191
Series
WI
3.734%
due
12/08/47
10
12
International
Business
Machines
Corp.
2.500%
due
01/27/22
721
744
3.000%
due
05/15/24
220
238
3.500%
due
05/15/29
215
248
International
Lease
Finance
Corp.
8.625%
due
01/15/22
50
54
5.875%
due
08/15/22
410
431
Jefferies
Group
LLC
6.500%
due
01/20/43
635
738
Johnson
&
Johnson
2.050%
due
03/01/23
728
758
3.625%
due
03/03/37
70
83
JPMorgan
Chase
&
Co.
4.350%
due
08/15/21
130
136
1.514%
due
06/01/24
(Ê)
340
345
3.875%
due
09/10/24
100
111
4.023%
due
12/05/24
(Ê)
220
242
2.083%
due
04/22/26
(Ê)
210
218
4.125%
due
12/15/26
230
268
4.250%
due
10/01/27
30
35
4.203%
due
07/23/29
(Ê)
200
234
4.452%
due
12/05/29
(Ê)
260
312
8.750%
due
09/01/30
280
407
2.522%
due
04/22/31
(Ê)
120
127
4.950%
due
06/01/45
100
135
3.109%
due
04/22/51
(Ê)
50
54
Kinder
Morgan
Energy
Partners,
LP
6.550%
due
09/15/40
600
756
5.500%
due
03/01/44
20
23
Kinder
Morgan,
Inc.
5.625%
due
11/15/23
(Þ)
703
794
4.300%
due
06/01/25
80
89
4.300%
due
03/01/28
170
193
5.550%
due
06/01/45
80
97
5.050%
due
02/15/46
30
35
5.200%
due
03/01/48
10
12
Series
GMTN
7.800%
due
08/01/31
176
239
KKR
Group
Finance
Co.
II
LLC
5.500%
due
02/01/43
(Þ)
10
12
Kraft
Foods
Group,
Inc.
3.500%
due
06/06/22
236
247
Kraft
Heinz
Foods
Co.
4.625%
due
01/30/29
168
181
4.250%
due
03/01/31
(Þ)
30
32
6.875%
due
01/26/39
288
355
5.000%
due
06/04/42
312
329
4.875%
due
10/01/49
(Þ)
261
266
5.500%
due
06/01/50
(Þ)
80
85
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
WI
3.950%
due
07/15/25
13
14
3.000%
due
06/01/26
319
323
5.000%
due
07/15/35
283
311
5.200%
due
07/15/45
363
393
4.375%
due
06/01/46
466
458
Kroger
Co.
(The)
5.150%
due
08/01/43
20
25
L3Harris
Technologies,
Inc.
4.854%
due
04/27/35
40
51
5.054%
due
04/27/45
40
53
Lamb
Weston
Holdings,
Inc.
4.875%
due
11/01/26
(Þ)
60
62
4.875%
due
05/15/28
(Þ)
10
11
Las
Vegas
Sands
Corp.
3.200%
due
08/08/24
922
918
2.900%
due
06/25/25
20
19
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
109
Levi
Strauss
&
Co.
5.000%
due
05/01/25
(Þ)
70
70
Liberty
Interactive
LLC
8.250%
due
02/01/30
81
79
Lockheed
Martin
Corp.
3.100%
due
01/15/23
702
747
4.500%
due
05/15/36
10
13
Series
10YR
3.550%
due
01/15/26
90
103
Loews
Corp.
6.000%
due
02/01/35
601
815
Lowe's
Cos.,
Inc.
4.500%
due
04/15/30
50
61
5.000%
due
04/15/40
40
52
5.125%
due
04/15/50
180
248
Macy's
Retail
Holdings,
Inc.
3.875%
due
01/15/22
150
132
2.875%
due
02/15/23
200
159
3.625%
due
06/01/24
200
145
Magellan
Health,
Inc.
Series
0005
4.900%
due
09/22/24
176
179
Main
Street
Capital
Corp.
5.200%
due
05/01/24
728
749
Marathon
Petroleum
Corp.
5.000%
due
09/15/54
234
239
Markel
Corp.
4.300%
due
11/01/47
699
790
Marriott
International,
Inc.
Series
R
3.125%
due
06/15/26
841
818
Mars,
Inc.
2.700%
due
04/01/25
(Þ)
60
64
3.200%
due
04/01/30
(Þ)
30
34
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
79
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Masco
Corp.
4.450%
due
04/01/25
238
270
Mastercard
,
Inc.
3.850%
due
03/26/50
20
25
Mattel,
Inc.
6.200%
due
10/01/40
113
98
McDonald's
Corp.
3.300%
due
07/01/25
80
89
1.450%
due
09/01/25
20
21
3.700%
due
01/30/26
100
114
3.500%
due
03/01/27
70
79
3.500%
due
07/01/27
30
34
3.800%
due
04/01/28
200
234
3.600%
due
07/01/30
70
81
3.625%
due
09/01/49
10
11
4.200%
due
04/01/50
140
170
Medtronic,
Inc.
Series
WI
3.150%
due
03/15/22
254
266
3.500%
due
03/15/25
67
76
Merck
&
Co.,
Inc.
0.750%
due
02/24/26
140
140
1.450%
due
06/24/30
70
70
MetLife,
Inc.
6.400%
due
12/15/36
100
118
Micron
Technology,
Inc.
2.497%
due
04/24/23
110
114
Microsoft
Corp.
2.875%
due
02/06/24
180
194
2.700%
due
02/12/25
764
834
2.400%
due
08/08/26
200
218
3.300%
due
02/06/27
810
926
4.100%
due
02/06/37
126
163
2.525%
due
06/01/50
174
180
MidAmerican
Energy
Co.
3.700%
due
09/15/23
237
257
4.400%
due
10/15/44
627
794
Midwest
Connector
Capital
Co.
LLC
3.625%
due
04/01/22
(Þ)
267
274
3.900%
due
04/01/24
(Þ)
769
808
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets,
Ltd.
6.500%
due
06/20/27
(Þ)
120
120
Mondelez
International,
Inc.
2.125%
due
04/13/23
40
41
3.625%
due
05/07/23
689
742
1.500%
due
05/04/25
260
265
Morgan
Stanley
3.737%
due
04/24/24
(Ê)
170
183
2.188%
due
04/28/26
(Ê)
340
354
3.622%
due
04/01/31
(Ê)
390
445
Series
GMTN
3.772%
due
01/24/29
(Ê)
20
23
4.431%
due
01/23/30
(Ê)
10
12
2.699%
due
01/22/31
(Ê)
420
446
5.597%
due
03/24/51
(Ê)
40
60
MPLX,
LP
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.000%
due
03/15/28
40
42
4.800%
due
02/15/29
170
189
4.500%
due
04/15/38
80
80
4.700%
due
04/15/48
140
144
5.500%
due
02/15/49
60
68
Series
0005
4.125%
due
03/01/27
800
853
Series
WI
4.500%
due
07/15/23
100
108
4.875%
due
06/01/25
40
45
National
Oilwell
Varco,
Inc.
3.600%
due
12/01/29
843
825
National
Securities
Clearing
Corp.
1.200%
due
04/23/23
(Þ)
250
254
Navient
Corp.
7.250%
due
01/25/22
199
199
Series
MTN
5.625%
due
08/01/33
120
92
NBCUniversal
Media
LLC
2.875%
due
01/15/23
524
560
Nestle
Holdings,
Inc.
3.350%
due
09/24/23
(Þ)
698
759
Nevada
Power
Co.
5.450%
due
05/15/41
208
269
Series
R
6.750%
due
07/01/37
362
546
New
York
Life
Global
Funding
0.950%
due
06/24/25
(Þ)
90
90
Newell
Brands,
Inc.
3.850%
due
04/01/23
402
414
4.200%
due
04/01/26
495
519
NGPL
PipeCo
LLC
7.768%
due
12/15/37
(Þ)
553
675
NIKE,
Inc.
2.400%
due
03/27/25
60
65
2.750%
due
03/27/27
100
110
2.850%
due
03/27/30
110
123
3.250%
due
03/27/40
70
79
3.375%
due
03/27/50
250
287
Noble
Energy,
Inc.
3.900%
due
11/15/24
250
252
3.850%
due
01/15/28
130
126
5.250%
due
11/15/43
10
9
4.950%
due
08/15/47
40
36
Northern
Natural
Gas
Co.
4.300%
due
01/15/49
(Þ)
631
753
Northrop
Grumman
Corp.
2.550%
due
10/15/22
717
748
2.930%
due
01/15/25
80
86
5.250%
due
05/01/50
90
129
Series
F0TZ
3.250%
due
01/15/28
310
346
Novartis
Capital
Corp.
2.400%
due
05/17/22
719
746
NVIDIA
Corp.
2.850%
due
04/01/30
60
67
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
80
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.500%
due
04/01/40
160
187
3.500%
due
04/01/50
440
510
3.700%
due
04/01/60
110
131
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA,
Inc.
2.700%
due
05/01/25
(Þ)
80
84
Occidental
Petroleum
Corp.
2.600%
due
08/13/21
300
293
3.125%
due
02/15/22
80
77
2.700%
due
08/15/22
120
112
6.950%
due
07/01/24
210
206
2.900%
due
08/15/24
749
640
5.550%
due
03/15/26
110
100
3.400%
due
04/15/26
239
196
3.000%
due
02/15/27
830
643
3.500%
due
08/15/29
60
44
7.500%
due
05/01/31
188
175
7.875%
due
09/15/31
30
28
6.450%
due
09/15/36
110
94
6.200%
due
03/15/40
116
97
4.500%
due
07/15/44
125
86
4.625%
due
06/15/45
177
124
6.600%
due
03/15/46
90
78
4.400%
due
04/15/46
691
482
4.100%
due
02/15/47
190
128
4.200%
due
03/15/48
70
47
4.400%
due
08/15/49
109
76
Oceaneering
International,
Inc.
6.000%
due
02/01/28
144
101
ONEOK
Partners,
LP
6.125%
due
02/01/41
614
659
ONEOK,
Inc.
7.500%
due
09/01/23
204
233
4.350%
due
03/15/29
506
532
Oracle
Corp.
2.625%
due
02/15/23
719
756
3.900%
due
05/15/35
685
828
Otis
Worldwide
Corp.
2.056%
due
04/05/25
(Þ)
60
63
2.293%
due
04/05/27
(Þ)
60
63
2.565%
due
02/15/30
(Þ)
170
178
Pacific
Gas
and
Electric
Co.
1.750%
due
06/16/22
180
180
2.100%
due
08/01/27
50
49
2.500%
due
02/01/31
60
59
3.300%
due
08/01/40
30
29
3.500%
due
08/01/50
40
39
PacifiCorp
5.750%
due
04/01/37
543
745
PayPal
Holdings,
Inc.
1.350%
due
06/01/23
90
92
1.650%
due
06/01/25
100
104
PepsiCo,
Inc.
2.750%
due
03/05/22
224
234
0.750%
due
05/01/23
503
508
2.250%
due
03/19/25
20
21
2.625%
due
03/19/27
10
11
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.625%
due
05/01/30
110
112
2.875%
due
10/15/49
40
43
3.625%
due
03/19/50
20
24
3.875%
due
03/19/60
30
38
Series
WI
7.000%
due
03/01/29
140
202
Petrobras
Global
Finance
BV
6.250%
due
03/17/24
100
107
Pfizer,
Inc.
0.800%
due
05/28/25
170
170
2.625%
due
04/01/30
110
121
1.700%
due
05/28/30
110
112
Philip
Morris
International,
Inc.
2.500%
due
08/22/22
90
94
1.125%
due
05/01/23
80
81
2.100%
due
05/01/30
70
72
4.500%
due
03/20/42
40
49
Series
5YR
2.500%
due
11/02/22
60
63
Series
NCD
2.375%
due
08/17/22
210
218
Phillips
66
Series
WI
4.300%
due
04/01/22
498
528
Pitney
Bowes,
Inc.
4.625%
due
05/15/22
161
132
4.625%
due
03/15/24
240
168
Plains
All
American
Pipeline,
LP
/
PAA
Finance
Corp.
3.600%
due
11/01/24
705
720
Precision
Castparts
Corp.
2.500%
due
01/15/23
240
251
3.900%
due
01/15/43
457
507
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
5.250%
due
04/15/24
(Þ)
70
72
5.750%
due
04/15/26
(Þ)
60
62
Principal
Life
Global
Funding
II
1.250%
due
06/23/25
(Þ)
40
40
Procter
&
Gamble
Co.
(The)
2.450%
due
03/25/25
50
54
2.800%
due
03/25/27
20
22
3.000%
due
03/25/30
60
69
3.550%
due
03/25/40
90
109
3.600%
due
03/25/50
100
124
Progress
Energy,
Inc.
7.000%
due
10/30/31
173
245
Prudential
Financial,
Inc.
5.625%
due
06/15/43
(Ê)
734
781
PSEG
Power
LLC
8.625%
due
04/15/31
170
240
Range
Resources
Corp.
5.875%
due
07/01/22
12
11
Series
WI
4.875%
due
05/15/25
230
173
Raytheon
Technologies
Corp.
3.650%
due
08/16/23
3
3
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
81
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.200%
due
03/15/24
(Þ)
708
762
3.150%
due
12/15/24
(Þ)
50
54
3.950%
due
08/16/25
30
34
4.125%
due
11/16/28
100
118
2.250%
due
07/01/30
110
115
4.500%
due
06/01/42
20
25
RBS
Capital
Trust
II
6.425%
due
12/29/49
(Ê)(ƒ)
106
155
Regency
Energy
Partners,
LP
/
Regency
Energy
Finance
Corp.
5.875%
due
03/01/22
60
63
Reliance
Holding
USA,
Inc.
5.400%
due
02/14/22
(Þ)
684
721
Republic
Services,
Inc.
2.500%
due
08/15/24
60
64
Reynolds
American,
Inc.
5.850%
due
08/15/45
70
88
Roche
Holdings,
Inc.
1.750%
due
01/28/22
(Þ)
669
685
Rockies
Express
Pipeline
LLC
4.950%
due
07/15/29
(Þ)
200
186
4.800%
due
05/15/30
(Þ)
306
282
Royal
Caribbean
Cruises,
Ltd.
7.500%
due
10/15/27
138
105
Sabal
Trail
Transmission
LLC
4.246%
due
05/01/28
(Þ)
663
740
Safeway,
Inc.
7.250%
due
02/01/31
92
98
Salesforce.com,
Inc.
3.250%
due
04/11/23
70
75
3.700%
due
04/11/28
30
35
Santander
Holdings
USA,
Inc.
4.500%
due
07/17/25
758
820
Sasol
Financing
International,
Ltd.
4.500%
due
11/14/22
272
246
Sasol
Financing
USA
LLC
5.875%
due
03/27/24
723
643
Schlumberger
Holdings
Corp.
4.000%
due
12/21/25
(Þ)
40
44
Service
Properties
Trust
5.000%
due
08/15/22
100
98
4.375%
due
02/15/30
765
615
Sherwin-Williams
Co.
(The)
3.125%
due
06/01/24
704
756
Sierra
Pacific
Power
Co.
Series
WI
2.600%
due
05/01/26
718
780
Simon
Property
Group,
LP
3.750%
due
02/01/24
774
832
Solar
Star
Funding
LLC
5.375%
due
06/30/35
(Þ)
652
748
Southern
Co.
(The)
2.950%
due
07/01/23
712
752
Southern
Co.
Gas
Capital
Corp.
6.000%
due
10/01/34
196
260
Southern
Copper
Corp.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
6.750%
due
04/16/40
10
14
5.250%
due
11/08/42
380
450
Southwest
Airlines
Co.
2.750%
due
11/16/22
806
813
Southwestern
Energy
Co.
6.200%
due
01/23/25
386
331
Spectra
Energy
Partners,
LP
4.750%
due
03/15/24
671
750
Spirit
AeroSystems
,
Inc.
3.950%
due
06/15/23
116
98
4.600%
due
06/15/28
158
127
Sprint
Capital
Corp.
6.875%
due
11/15/28
444
541
8.750%
due
03/15/32
586
837
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
3.360%
due
09/20/21
(Þ)
63
63
4.738%
due
03/20/25
(Þ)
240
260
Sunoco
Logistics
Partners
Operations,
LP
3.450%
due
01/15/23
420
434
4.250%
due
04/01/24
269
288
5.300%
due
04/01/44
10
10
Synchrony
Financial
3.950%
due
12/01/27
793
829
Sysco
Corp.
2.400%
due
02/15/30
734
725
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
4.250%
due
11/15/23
20
19
5.875%
due
04/15/26
10
10
5.375%
due
02/01/27
10
10
5.500%
due
03/01/30
(Þ)
30
29
Target
Corp.
2.250%
due
04/15/25
120
128
Teachers
Insurance
&
Annuity
Association
of
America
4.900%
due
09/15/44
(Þ)
340
437
Tennessee
Gas
Pipeline
Co.
LLC
2.900%
due
03/01/30
(Þ)
210
215
Texas
Instruments,
Inc.
1.750%
due
05/04/30
70
71
Thermo
Fisher
Scientific,
Inc.
3.000%
due
04/15/23
706
748
Time
Warner
Cable
LLC
7.300%
due
07/01/38
30
42
6.750%
due
06/15/39
20
27
Time
Warner
Entertainment
Co.,
LP
8.375%
due
03/15/23
782
916
TJX
Cos.,
Inc.
(The)
3.500%
due
04/15/25
80
89
3.750%
due
04/15/27
20
23
T-Mobile
USA,
Inc.
6.000%
due
03/01/23
10
10
3.500%
due
04/15/25
(Þ)
490
534
3.750%
due
04/15/27
(Þ)
30
33
3.875%
due
04/15/30
(Þ)
300
334
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
82
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Toll
Brothers
Finance
Corp.
4.375%
due
04/15/23
30
31
Toyota
Motor
Credit
Corp.
3.400%
due
09/15/21
782
809
Transcontinental
Gas
Pipe
Line
Co.
LLC
Series
WI
7.850%
due
02/01/26
220
286
TransDigm
,
Inc.
8.000%
due
12/15/25
(Þ)
20
21
6.250%
due
03/15/26
(Þ)
80
80
Truist
Financial
Corp.
2.500%
due
08/01/24
757
805
TWDC
Enterprises
18
Corp.
2.350%
due
12/01/22
240
250
Series
MTNB
7.000%
due
03/01/32
552
817
Tyson
Foods,
Inc.
4.500%
due
06/15/22
518
551
3.950%
due
08/15/24
237
262
Unilever
Capital
Corp.
2.200%
due
05/05/22
504
519
Union
Pacific
Corp.
2.950%
due
01/15/23
269
284
3.750%
due
07/15/25
60
68
2.150%
due
02/05/27
50
53
3.950%
due
09/10/28
400
475
3.750%
due
02/05/70
110
122
Series
WI
3.839%
due
03/20/60
140
164
United
Parcel
Service,
Inc.
3.900%
due
04/01/25
715
812
United
Rentals
NA,
Inc.
6.500%
due
12/15/26
10
11
3.875%
due
11/15/27
10
10
4.875%
due
01/15/28
30
31
5.250%
due
01/15/30
130
134
United
States
Steel
Corp.
6.650%
due
06/01/37
128
83
UnitedHealth
Group,
Inc.
2.875%
due
12/15/21
40
41
2.875%
due
03/15/22
720
745
2.375%
due
10/15/22
20
21
3.500%
due
06/15/23
40
43
3.750%
due
07/15/25
50
57
1.250%
due
01/15/26
40
41
2.000%
due
05/15/30
40
42
4.625%
due
07/15/35
100
132
5.700%
due
10/15/40
60
88
4.250%
due
06/15/48
30
38
4.450%
due
12/15/48
30
39
3.700%
due
08/15/49
160
189
3.875%
due
08/15/59
30
37
3.125%
due
05/15/60
40
43
Unum
Group
5.750%
due
08/15/42
796
845
US
Bancorp
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.450%
due
05/12/25
260
268
USAA
Capital
Corp.
2.125%
due
05/01/30
(Þ)
150
154
Valero
Energy
Corp.
2.850%
due
04/15/25
776
818
10.500%
due
03/15/39
151
247
Verizon
Communications,
Inc.
3.500%
due
11/01/24
20
22
2.625%
due
08/15/26
70
76
4.125%
due
03/16/27
40
47
3.000%
due
03/22/27
40
44
3.875%
due
02/08/29
120
142
3.150%
due
03/22/30
90
102
7.750%
due
12/01/30
100
151
4.500%
due
08/10/33
450
560
5.250%
due
03/16/37
80
108
3.850%
due
11/01/42
20
24
4.125%
due
08/15/46
60
75
5.500%
due
03/16/47
10
15
4.000%
due
03/22/50
40
50
Series
WI
2.946%
due
03/15/22
717
748
3.376%
due
02/15/25
248
275
4.329%
due
09/21/28
123
148
4.862%
due
08/21/46
50
68
ViacomCBS
,
Inc.
3.875%
due
04/01/24
20
22
4.000%
due
01/15/26
753
843
Visa,
Inc.
3.150%
due
12/14/25
150
167
4.300%
due
12/14/45
590
779
Vistra
Operations
Co.
LLC
4.300%
due
07/15/29
(Þ)
708
744
VOC
Escrow,
Ltd.
5.000%
due
02/15/28
(Þ)
60
45
Volkswagen
Group
of
America
Finance
LLC
4.000%
due
11/12/21
(Þ)
699
728
Vornado
Realty
Trust
3.500%
due
01/15/25
615
616
Walgreens
Boots
Alliance,
Inc.
3.300%
due
11/18/21
707
729
Wal-Mart
Stores,
Inc.
3.300%
due
04/22/24
697
766
Walmart,
Inc.
3.400%
due
06/26/23
40
43
3.550%
due
06/26/25
40
45
3.700%
due
06/26/28
230
273
Walt
Disney
Co.
(The)
Series
WI
3.700%
due
09/15/24
682
758
6.650%
due
11/15/37
40
60
Washington
Prime
Group,
LP
6.450%
due
08/15/24
189
107
Waste
Management,
Inc.
3.500%
due
05/15/24
190
207
2.950%
due
06/15/24
100
102
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
83
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.200%
due
06/15/26
100
102
3.450%
due
06/15/29
80
83
4.150%
due
07/15/49
40
50
Wells
Fargo
&
Co.
1.990%
due
10/31/23
(Ê)
200
201
3.750%
due
01/24/24
535
585
3.000%
due
04/22/26
400
437
2.188%
due
04/30/26
(Ê)
230
238
3.000%
due
10/23/26
260
284
4.150%
due
01/24/29
545
639
2.879%
due
10/30/30
(Ê)
180
192
4.478%
due
04/04/31
(Ê)
80
97
5.375%
due
11/02/43
200
272
4.650%
due
11/04/44
10
12
4.400%
due
06/14/46
230
278
4.750%
due
12/07/46
530
677
5.013%
due
04/04/51
(Ê)
1,050
1,451
Series
GMTN
4.900%
due
11/17/45
250
321
Western
Midstream
Operating,
LP
2.161%
due
01/13/23
(Ê)
40
37
3.100%
due
02/01/25
90
85
4.650%
due
07/01/26
40
38
4.500%
due
03/01/28
50
47
4.050%
due
02/01/30
340
327
5.300%
due
03/01/48
620
503
5.250%
due
02/01/50
60
52
Williams
Cos.,
Inc.
(The)
7.750%
due
06/15/31
130
168
8.750%
due
03/15/32
517
766
5.800%
due
11/15/43
155
177
Series
A
7.500%
due
01/15/31
80
102
Williams
Partners,
LP
3.750%
due
06/15/27
60
64
WPX
Energy,
Inc.
5.250%
due
10/15/27
30
28
4.500%
due
01/15/30
20
18
Wyndham
Worldwide
Corp.
4.250%
due
03/01/22
513
504
221,123
International
Debt
-
10.1%
1011778
B.C.
Unlimited
Liability
Co.
Term
Loan
B4
1.928%
due
11/19/26
(Ê)
360
341
1011778
BC
Unlimited
Liability
Co.
/
New
Red
Finance,
Inc.
4.250%
due
05/15/24
(Þ)
120
120
Abu
Dhabi
Government
International
Bond
2.500%
due
10/11/22
(Þ)
200
207
3.875%
due
04/16/50
(Þ)
520
614
Adani
Abbot
Point
Terminal
Pty,
Ltd.
4.450%
due
12/15/22
(Þ)
253
218
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
4.450%
due
04/03/26
872
826
Series
WI
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.000%
due
10/01/21
652
659
Air
Liquide
Finance
SA
1.750%
due
09/27/21
(Þ)
733
742
Alibaba
Group
Holding,
Ltd.
Series
WI
3.125%
due
11/28/21
616
634
Altrice
France
SA
Term
Loan
B12
3.872%
due
01/31/26
(Ê)
65
62
America
Movil
SAB
de
CV
3.125%
due
07/16/22
750
776
Anglo
American
Capital
PLC
3.625%
due
09/11/24
(Þ)
200
210
5.375%
due
04/01/25
(Þ)
712
804
AP
Moller
-
Maersk
A/S
4.500%
due
06/20/29
(Þ)
767
823
ArcelorMittal
SA
3.600%
due
07/16/24
120
119
4.550%
due
03/11/26
50
50
Argentine
Republic
Government
International
Bond
5.625%
due
01/26/22
(~)(Ê)
340
141
6.875%
due
01/11/48
(~)(Ê)
210
82
Series
NY
5.250%
due
03/31/29
(~)(Ê)
160
63
Series
WI
7.500%
due
04/22/26
(~)(Ê)
170
69
AstraZeneca
PLC
2.375%
due
06/12/22
403
417
Banco
de
Bogota
SA
Series
EMTQ
4.375%
due
08/03/27
(Þ)
686
696
Banco
de
Credito
del
Peru
4.250%
due
04/01/23
(Þ)
693
730
Banco
Inbursa
SA
Institucion
de
Banca
Multiple
4.125%
due
06/06/24
(Þ)
711
730
Banco
Santander
SA
3.848%
due
04/12/23
200
213
2.706%
due
06/27/24
400
420
2.746%
due
05/28/25
400
414
4.379%
due
04/12/28
200
223
Bangkok
Bank
PCL
3.875%
due
09/27/22
(Þ)
219
230
Banistmo
SA
Series
MTQ0
3.650%
due
09/19/22
(Þ)
729
728
Bank
of
Montreal
2.900%
due
03/26/22
270
281
1.850%
due
05/01/25
230
238
3.803%
due
12/15/32
(Ê)
20
22
Bank
of
Nova
Scotia
(The)
1.300%
due
06/11/25
130
131
Series
BKNT
2.450%
due
09/19/22
721
752
Barclays
Bank
PLC
1.700%
due
05/12/22
200
204
Barclays
PLC
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
84
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.972%
due
05/16/29
(Ê)
400
469
5.088%
due
06/20/30
(Ê)
200
228
4.950%
due
01/10/47
660
867
Bausch
Health
Americas,
Inc.
Term
Loan
B
3.190%
due
06/01/25
(Ê)
79
76
Bausch
Health
Cos.,
Inc.
6.250%
due
02/15/29
(Þ)
110
111
7.250%
due
05/30/29
(Þ)
70
73
BBVA
Bancomer
SA
6.750%
due
09/30/22
(Þ)
667
711
Bharti
Airtel
International
Netherlands
BV
5.125%
due
03/11/23
(Þ)
693
724
BHP
Billiton
Finance
USA,
Ltd.
2.875%
due
02/24/22
5
5
5.000%
due
09/30/43
170
235
BNP
Paribas
SA
4.705%
due
01/10/25
(Ê)(Þ)
260
288
2.219%
due
06/09/26
(Ê)(Þ)
200
204
4.625%
due
03/13/27
(Þ)
722
809
4.400%
due
08/14/28
(Þ)
200
230
BP
Capital
Markets
PLC
3.561%
due
11/01/21
770
800
3.245%
due
05/06/22
222
232
3.506%
due
03/17/25
748
828
Brazil
Government
International
Bond
2.625%
due
01/05/23
220
224
4.625%
due
01/13/28
990
1,038
5.625%
due
01/07/41
170
176
5.000%
due
01/27/45
350
335
British
Telecommunications
PLC
9.625%
due
12/15/30
30
49
Brookfield
Finance,
Inc.
4.000%
due
04/01/24
618
670
Canadian
Imperial
Bank
of
Commerce
2.550%
due
06/16/22
718
748
0.950%
due
06/23/23
120
120
Celulosa
Arauco
y
Constitucion
SA
Series
WI
3.875%
due
11/02/27
705
719
Cenovus
Energy,
Inc.
Series
WI
4.250%
due
04/15/27
250
227
5.400%
due
06/15/47
124
106
CNOOC
Finance
USA
LLC
3.500%
due
05/05/25
550
599
Colombia
Government
International
Bond
5.625%
due
02/26/44
270
322
Commerzbank
AG
8.125%
due
09/19/23
(Þ)
213
240
Cooperatieve
Rabobank
UA
4.625%
due
12/01/23
250
276
4.375%
due
08/04/25
900
1,016
Credit
Agricole
SA
4.375%
due
03/17/25
(Þ)
734
811
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.907%
due
06/16/26
(Ê)(Þ)
250
253
Credit
Suisse
Group
AG
2.193%
due
06/05/26
(Ê)(Þ)
330
334
4.194%
due
04/01/31
(Ê)(Þ)
250
285
Danone
SA
2.077%
due
11/02/21
(Þ)
890
907
2.589%
due
11/02/23
(Þ)
718
755
Danske
Bank
A/S
5.000%
due
01/12/22
(Þ)
400
421
3.875%
due
09/12/23
(Þ)
200
212
5.375%
due
01/12/24
(Þ)
862
960
1.226%
due
06/22/24
(Þ)
200
201
Deutsche
Bank
AG
4.500%
due
04/01/25
238
233
4.296%
due
05/24/28
(Ê)
180
165
DP
World
PLC
5.625%
due
09/25/48
(Þ)
200
218
Dresdner
Funding
Trust
I
8.151%
due
06/30/31
(Þ)
265
363
Ecopetrol
SA
5.875%
due
09/18/23
776
830
5.375%
due
06/26/26
60
63
5.875%
due
05/28/45
350
366
Electricite
de
France
SA
6.000%
due
01/22/14
(Þ)
614
788
Enbridge,
Inc.
3.700%
due
07/15/27
687
758
Enel
SpA
Series
658A
3.500%
due
04/06/28
(Þ)
706
759
Eni
SpA
4.250%
due
05/09/29
(Þ)
658
712
Equate
Petrochemical
BV
4.250%
due
11/03/26
(Þ)
200
211
Equinor
ASA
2.650%
due
01/15/24
775
825
Fairfax
Financial
Holdings,
Ltd.
Series
WI
4.850%
due
04/17/28
810
867
Falabella
SA
4.375%
due
01/27/25
(Þ)
692
724
Four
Seasons
Hotels,
Ltd.
1st
Lien
Term
Loan
B
2.178%
due
11/30/23
(Ê)
139
131
Froneri
International,
Ltd.
Term
Loan
2.428%
due
01/31/27
(Ê)
120
113
Garda
World
Security
Corp.
2019
1ST
Lien
Term
Loan
B
4.930%
due
10/30/26
(Ê)
69
67
Gazprom
PJSC
Via
Gaz
Capital
SA
6.510%
due
03/07/22
(Þ)
672
721
GE
Capital
International
Funding
Co.
Unlimited
Co.
Series
WI
3.373%
due
11/15/25
764
802
4.418%
due
11/15/35
600
609
GFL
Environmental,
Inc.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
85
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.250%
due
06/01/25
(Þ)
70
71
GFL
Environmental,
Inc.
1st
Lien
Term
Loan
B
4.000%
due
05/31/25
(Ê)
24
23
GlaxoSmithKline
Capital
PLC
2.850%
due
05/08/22
256
267
2.875%
due
06/01/22
510
533
Heineken
NV
3.400%
due
04/01/22
(Þ)
710
743
HSBC
Bank
PLC
7.650%
due
05/01/25
375
442
HSBC
Holdings
PLC
2.650%
due
01/05/22
721
743
3.900%
due
05/25/26
220
244
2.099%
due
06/04/26
(Ê)
200
202
4.041%
due
03/13/28
(Ê)
410
453
4.583%
due
06/19/29
(Ê)
400
462
4.950%
due
03/31/30
200
239
3.973%
due
05/22/30
(Ê)
200
222
6.250%
due
12/31/99
(Ê)(ƒ)
200
199
6.500%
due
12/31/99
(Ê)(ƒ)
200
205
ICICI
Bank,
Ltd.
4.000%
due
03/18/26
(Þ)
782
805
Indonesia
Government
International
Bond
3.500%
due
01/11/28
210
223
4.350%
due
01/11/48
240
270
3.700%
due
10/30/49
540
561
Series
REGS
3.750%
due
04/25/22
430
446
Intesa
Sanpaolo
SpA
3.125%
due
07/14/22
(Þ)
400
407
3.375%
due
01/12/23
(Þ)
200
206
5.017%
due
06/26/24
(Þ)
292
299
3.875%
due
01/12/28
(Þ)
846
874
Inversiones
CMPC
SA
4.500%
due
04/25/22
(Þ)
214
224
Israel
Government
International
Bond
2.750%
due
07/03/30
200
220
KazMunayGas
National
Co.
JSC
5.375%
due
04/24/30
(Þ)
200
226
Kuwait
Government
International
Bond
3.500%
due
03/20/27
(Þ)
210
234
Lloyds
Banking
Group
PLC
4.050%
due
08/16/23
742
807
4.375%
due
03/22/28
200
232
4.550%
due
08/16/28
400
469
6.657%
due
12/29/49
(Ê)(ƒ)(Þ)
108
122
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
249
Marks
&
Spencer
PLC
7.125%
due
12/01/37
(Þ)
308
306
Methanex
Corp.
5.250%
due
12/15/29
221
194
Mexico
Government
International
Bond
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
6.050%
due
01/11/40
30
37
4.750%
due
03/08/44
20
21
4.350%
due
01/15/47
610
611
Mitsubishi
UFJ
Financial
Group,
Inc.
2.998%
due
02/22/22
534
553
Mondelez
International
Holdings
Netherlands
BV
2.000%
due
10/28/21
(Þ)
726
739
NBK
SPC,
Ltd.
2.750%
due
05/30/22
(Þ)
714
728
NXP
BV
/
NXP
Funding
LLC
4.625%
due
06/15/22
(Þ)
693
738
Panther
BF
Aggregator,
LP
Term
Loan
B
3.678%
due
04/30/26
(Ê)
318
302
Park
Aerospace
Holdings,
Ltd.
5.250%
due
08/15/22
(Þ)
50
47
Pernod
Ricard
SA
4.450%
due
01/15/22
(Þ)
150
158
Peru
Government
International
Bond
6.550%
due
03/14/37
30
46
5.625%
due
11/18/50
160
252
Petrobras
Global
Finance
BV
Series
WI
5.299%
due
01/27/25
1,905
1,984
Petroleos
Mexicanos
6.625%
due
06/15/35
10
8
Series
WI
4.625%
due
09/21/23
100
96
6.875%
due
08/04/26
220
208
Prosus
NV
4.850%
due
07/06/27
(Þ)
250
280
Provincia
de
Buenos
Aires
6.500%
due
02/15/23
(~)(Ê)(Þ)
140
58
Qatar
Government
International
Bond
4.817%
due
03/14/49
(Þ)
410
539
4.400%
due
04/16/50
(Þ)
360
446
Republic
of
Peru
Government
International
Bond
2.783%
due
01/23/31
130
139
Royal
Bank
of
Canada
1.150%
due
06/10/25
120
120
Series
GMTN
1.600%
due
04/17/23
200
205
Royal
Bank
of
Scotland
Group
PLC
6.125%
due
12/15/22
70
76
3.875%
due
09/12/23
200
216
5.125%
due
05/28/24
420
459
4.519%
due
06/25/24
(Ê)
200
217
4.269%
due
03/22/25
(Ê)
200
217
7.648%
due
12/31/49
(Ê)(ƒ)
136
197
Royal
Caribbean
Cruises,
Ltd.
5.250%
due
11/15/22
258
201
Sands
China,
Ltd.
3.800%
due
01/08/26
(Þ)
200
206
Series
WI
5.125%
due
08/08/25
400
433
Santander
UK
Group
Holdings
PLC
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
86
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.000%
due
11/07/23
(Þ)
238
259
Class
N
4.750%
due
09/15/25
(Þ)
701
760
Saudi
Arabian
Oil
Co.
2.875%
due
04/16/24
(Þ)
768
798
Schneider
Electric
SE
2.950%
due
09/27/22
(Þ)
800
840
Shell
International
Finance
BV
2.375%
due
08/21/22
770
803
2.375%
due
04/06/25
773
821
2.875%
due
05/10/26
40
44
2.750%
due
04/06/30
100
108
4.375%
due
05/11/45
320
397
4.000%
due
05/10/46
80
94
3.250%
due
04/06/50
230
247
Shire
Acquisitions
Investments
Ireland
DAC
2.400%
due
09/23/21
782
798
Siemens
Financieringsmaatschappij
NV
1.700%
due
09/15/21
(Þ)
250
254
2.700%
due
03/16/22
(Þ)
769
798
Skandinaviska
Enskilda
Banken
AB
2.800%
due
03/11/22
225
234
Societe
Generale
SA
5.000%
due
01/17/24
(Þ)
700
757
Standard
Chartered
PLC
3.785%
due
05/21/25
(Ê)(Þ)
447
473
7.014%
due
12/30/49
(Ê)(ƒ)(Þ)
111
124
Stars
Group
Holdings
BV
Term
Loan
B
3.808%
due
07/10/25
(Ê)
5
5
Sumitomo
Mitsui
Financial
Group,
Inc.
2.442%
due
10/19/21
790
809
Series
5FXD
2.058%
due
07/14/21
90
92
Suncor
Energy,
Inc.
3.600%
due
12/01/24
688
743
Swedbank
AB
1.300%
due
06/02/23
(Þ)
200
202
Syngenta
Finance
NV
3.125%
due
03/28/22
718
728
Telecom
Italia
Capital
SA
6.375%
due
11/15/33
276
311
Telecom
Italia
SpA
6.000%
due
09/30/34
394
428
Telefonica
Emisiones
SA
4.570%
due
04/27/23
682
749
5.213%
due
03/08/47
150
188
Teva
Pharmaceutical
Finance
Co.
BV
2.950%
due
12/18/22
40
39
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
140
137
2.800%
due
07/21/23
330
312
3.150%
due
10/01/26
370
330
Toronto-Dominion
Bank
(The)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
0.750%
due
06/12/23
240
241
1.150%
due
06/12/25
110
111
Total
Capital
Canada,
Ltd.
2.750%
due
07/15/23
770
824
Total
Capital
International
SA
4.250%
due
12/15/21
230
243
2.700%
due
01/25/23
713
752
Trust
Fibra
Uno
5.250%
due
01/30/26
(Þ)
685
721
UBS
AG
1.750%
due
04/21/22
(Þ)
220
224
UBS
Group
AG
3.491%
due
05/23/23
(Þ)
270
283
2.859%
due
08/15/23
(Ê)(Þ)
200
207
4.253%
due
03/23/28
(Þ)
200
227
3.126%
due
08/13/30
(Ê)(Þ)
200
216
7.000%
due
12/31/99
(Ê)(ƒ)(Þ)
660
686
UniCredit
SpA
6.572%
due
01/14/22
(Þ)
1,042
1,101
Vale
Overseas,
Ltd.
6.875%
due
11/21/36
180
235
Vodafone
Group
PLC
4.375%
due
05/30/28
220
262
7.000%
due
04/04/79
(Ê)
311
365
Woori
Bank
4.750%
due
04/30/24
(Þ)
734
801
Ziggo
Secured
Finance
BV
Term
Loan
I
2.685%
due
04/30/28
(Ê)
16
15
88,106
Loan
Agreements
-
1.4%
Air
Medical
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
4.250%
due
04/28/22
(Ê)
115
111
Allied
Universal
Holdco
Term
Loan
B
4.428%
due
07/12/26
(Ê)
323
313
American
Airlines,
Inc.
1st
Lien
Term
Loan
B
2.185%
due
12/14/23
(Ê)
79
63
APi
Group
DE,
Inc.
Term
Loan
B
2.678%
due
10/01/26
(Ê)
318
306
Asurion
LLC
1st
Lien
Term
Loan
B7
3.178%
due
11/03/24
(Ê)
188
181
Asurion
LLC
Term
Loan
B4
3.178%
due
08/04/22
(Ê)
185
180
Asurion
LLC
Term
Loan
B6
3.178%
due
11/03/23
(Ê)
70
67
Atlantic
Aviation
FBO,
Inc.
Term
Loan
B
3.930%
due
12/06/25
(Ê)
20
18
Berry
Global,
Inc.
Term
Loan
W
2.177%
due
10/01/22
(Ê)
114
110
Brickman
Group,
Ltd.
1st
Lien
Term
Loan
B
2.688%
due
08/15/25
(Ê)
18
17
2.750%
due
08/15/25
(~)(Ê)
22
21
Caesars
Entertainment
Operating
Co.
LLC
1st
Lien
Term
Loan
B
2.178%
due
10/06/24
(Ê)
133
133
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
87
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Caesars
Resort
Collection LLC
2020
Term
Loan
0.000%
due
06/19/25
(~)(Ê)(v)
160
150
Caesars
Resort
Collection
LLC
1st
Lien
Term
Loan
B
2.928%
due
12/22/24
(Ê)
138
122
Change
Healthcare
Holdings
LLC
1st
Lien
Term
Loan
B
3.500%
due
03/01/24
(Ê)
374
358
Charter
Communications
Operating
LLC
Term
Loan
B1
1.930%
due
04/30/25
(Ê)
325
313
Citadel
Securities,
LP
Term
Loan
B
2.928%
due
02/27/26
(Ê)
268
260
CityCenter
Holdings
LLC
Term
Loan
B
3.000%
due
04/18/24
(Ê)
47
43
CSC
Holdings
LLC
2019
Term
Loan
B5
2.685%
due
04/15/27
(Ê)
50
47
Dcert
Buyer,
Inc.
Term
Loan
B
4.178%
due
10/16/26
(Ê)
329
317
Deerfield
Dakota
Holding,
LLC
2020
Term
Loan
B
4.750%
due
04/09/27
(Ê)
250
243
Dell
International
LLC
Term
Loan
B
2.750%
due
09/19/25
(Ê)
214
208
Delta
Air
Lines,
Inc.
Term
Loan
B
5.750%
due
04/29/23
(Ê)
230
225
Edelman
Financial
Center
LLC
Term
Loan
B1
3.180%
due
07/19/25
(Ê)
69
66
Elanco
Animal
Health,
Inc.
Term
Loan
B
1.940
due
02/04/27
(Ê)
270
257
Eyecare
Partners
LLC
Delayed
Draw
Term
Loan
0.000%
due
02/20/27
(Ê)
(
ƕ
)(v)
19
17
Eyecare
Partners
LLC
Term
Loan
4.058%
due
02/20/27
(Ê)
81
73
First
Eagle
Holdings,
Inc.
Term
Loan
B
2.808%
due
02/02/27
(Ê)
49
47
Focus
Financial
Partners
LLC
2020
Term
Loan
2.178%
due
07/03/24
(Ê)
149
142
Genesee
&
Wyoming,
Inc.
New
Term
Loan
2.308%
due
12/30/26
(Ê)
249
240
Golden
Nugget,
Inc.
1st
Lien
Term
Loan
B
3.250%
due
10/04/23
(Ê)
256
202
Grifols
Worldwide
Operations
USA,
Inc.
Term
Loan
B
2.109%
due
11/15/27
(Ê)
279
268
HCA,
Inc.
Term
Loan
B12
1.928%
due
03/13/25
(Ê)
47
46
Hilton
Worldwide
Finance
LLC
Term
Loan
B
1.935%
due
06/21/26
(Ê)
345
325
iHeartCommunications
,
Inc.
2020
Term
Loan
3.178%
due
05/01/26
(Ê)
258
237
Intrawest
Resorts
Holdings,
Inc.
1st
Lien
Term
Loan
B1
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.928%
due
07/31/24
(Ê)
138
130
Jaguar
Holding
Co.
II
1st
Lien
Term
Loan
3.500%
due
08/18/22
(Ê)
185
183
Jane
Street
Group
LLC
Term
Loan
3.178%
due
01/07/25
(Ê)
317
308
Level
3
Financing,
Inc.
Term
Loan
B
1.928%
due
03/01/27
(Ê)
148
140
MA
Finance
Co.
LLC
1st
Lien
Term
Loan
B
0.000%
due
06/21/24
(Ê)(v)
4
4
McAfee
LLC
Term
Loan
B
3.934%
due
09/29/24
(Ê)
327
318
Michaels
Stores,
Inc.
1st
Lien
Term
Loan
B
3.500%
due
01/30/23
(Ê)
36
32
3.558%
due
01/30/23
(Ê)
42
38
MultiPlan
,
Inc.
Term
Loan
B
3.750%
due
06/07/23
(Ê)
197
187
Nexstar
Broadcasting,
Inc.
Term
Loan
B4
2.923%
due
09/19/26
(Ê)
385
366
Option
Care
Helath
,
Inc.
Term
Loan
B
4.678%
due
08/06/26
(Ê)
318
309
Party
City
Holdings,
Inc.
1st
Lien
Term
Loan
3.250%
due
08/19/22
(Ê)
2
1
4.100%
due
08/19/22
(Ê)
61
29
PCI
Gaming
Authority
Term
Loan
2.678%
due
05/31/26
(Ê)
79
75
Phoenix
Guarantor,
Inc.
Term
Loan
B
3.435%
due
03/05/26
(Ê)
122
118
Prime
Security
Services
Borrower
LLC
Term
Loan
B1
4.250%
due
09/23/26
(Ê)
254
243
RegionalCare
Hospital
Partners
Holdings,
Inc.
Term
Loan
B
3.928%
due
11/16/25
(Ê)
320
299
Reynolds
American,
Inc.
Term
Loan
1.928%
due
02/04/27
(Ê)
163
157
Reynolds
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
2.928%
due
02/05/23
(Ê)
70
67
RPI
Intermediate
Finance
Trust
Term
Loan
B1
1.928%
due
02/11/27
(Ê)
269
261
Scientific
Games
International,
Inc. 1st
Lien
Term
Loan
B5
3.612%
due
08/14/24
(Ê)
177
156
Scientific
Games
International,
Inc.
1st
Lien
Term
Loan
B5
3.058%
due
08/14/24
(Ê)
1
—
3.928%
due
08/14/24
(Ê)
43
38
Seattle
SpinCo
,
Inc.
1st
Lien
Term
Loan
B3
2.678%
due
06/21/24
(Ê)
26
24
Sotera
Health
Holdings
LLC
Term
Loan
5.500%
due
12/13/26
(Ê)
339
331
TKC
Holdings,
Inc.
1st
Lien
Term
Loan
4.750%
due
02/01/23
(Ê)
217
203
T-Mobile
US,
Inc.
2020
Term
Loan
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
88
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.178%
due
04/01/27
(Ê)
220
220
Trans
Union
LLC
Term
Loan
B5
1.928%
due
11/13/26
(Ê)
98
94
UFC
Holdings
LLC
Term
Loan
4.250%
due
04/29/26
(Ê)
218
208
Univision
Communications,
Inc.
2020
Term
Loan
B
0.000%
due
03/15/26
(~)(Ê)(v)
20
19
Univision
Communications,
Inc.
Term
Loan
C5
3.750%
due
03/15/24
(~)(Ê)
134
123
US
Foods,
Inc.
Term
Loan
B
1.928%
due
06/27/23
(Ê)
90
84
3.070%
due
09/13/26
(Ê)
90
83
VFH
Parent
LLC
Term
Loan
B
3.188%
due
03/01/26
(Ê)
290
282
VICI
Properties,
Inc.
1st
Lien
Term
Loan
B
1.940%
due
12/22/24
(Ê)
146
136
Virgin
Media
Secured
Finance
PLC
Term
Loan
2.685%
due
01/31/28
(Ê)
297
283
VVC
Holdings
Corp.
Term
Loan
B
4.818%
due
02/11/26
(Ê)
426
412
Western
Digital
Corp.
1st
Lien
Term
Loan
B4
1.924%
due
04/29/23
(Ê)
29
28
Wynn
Resorts
Finance
LLC
Term
Loan
A
1.930%
due
09/20/24
(Ê)
347
322
12,037
Mortgage-Backed
Securities
-
27.7%
A10
Securitization
LLC
Series
2017-AA
Class
B1
0.071%
due
05/15/36
(Þ)
961
913
American
Home
Mortgage
Investment
Trust
Series
2004-4
Class
4A
2.805%
due
02/25/45
(Ê)
9
9
Banc
of
America
Funding
Trust
Series
2005-D
Class
A1
4.633%
due
05/25/35
(~)(Ê)
225
222
Series
2006-6
Class
2A1
6.000%
due
08/25/36
742
729
BCAP
LLC
Trust
Series
2010-RR7
Class
3A12
3.997%
due
08/26/35
(~)(Ê)(Þ)
699
612
Bear
Stearns
ALT-A
Trust
Series
2005-2
Class
1M1
3.236%
due
03/25/35
(Ê)
598
585
Bear
Stearns
ARM
Trust
Series
2004-3
Class
2A
4.017%
due
07/25/34
(~)(Ê)
109
101
Bear
Stearns
Commercial
Mortgage
Securities
Trust
Series
2007-T26
Class
AM
5.513%
due
01/12/45
(~)(Ê)
72
66
BX
Commercial
Mortgage
Trust
Series
2018-BILT
Class
C
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.405%
due
05/15/30
(Ê)(Þ)
1,650
1,493
Series
2018-BIOA
Class
D
1.506%
due
03/15/37
(Ê)(Þ)
790
754
Series
2018-BIOA
Class
E
4.424%
due
03/15/37
(Ê)(Þ)
1,575
1,439
Series
2018-IND
Class
G
2.235%
due
11/15/35
(Ê)(Þ)
133
128
Series
2019-XL
Class
A
1.105%
due
10/15/36
(Ê)(Þ)
1,051
1,045
BXP
Trust
Series
2017-GM
Class
A
3.379%
due
06/13/39
(Þ)
818
896
CAMB
Commercial
Mortgage
Trust
Series
2019-LIFE
Class
F
2.735%
due
12/15/37
(Ê)(Þ)
987
933
Series
2019-LIFE
Class
G
3.435%
due
12/15/37
(Ê)(Þ)
1,651
1,548
CHL
Mortgage
Pass-Through
Trust
Series
2005-3
Class
1A2
3.066%
due
04/25/35
(Ê)
6
5
Citigroup
Commercial
Mortgage
Trust
Series
2013-375P
Class
A
3.251%
due
05/10/35
(Þ)
170
177
Series
2013-375P
Class
D
3.635%
due
05/10/35
(~)(Ê)(Þ)
1,418
1,380
Series
2019-SST2
Class
F
2.685%
due
12/15/36
(Ê)(Þ)
430
406
Citigroup
Mortgage
Loan
Trust,
Inc.
Series
2005-2
Class
1A2A
4.913%
due
05/25/35
(~)(Ê)
216
217
Series
2005-11
Class
A2A
4.820%
due
10/25/35
(Ê)
4
4
Series
2015-2
Class
5A1
2.740%
due
03/25/47
(Ê)(Þ)
119
119
Commercial
Mortgage
Trust
Series
2013-300P
Class
A1
4.353%
due
08/10/30
(Þ)
195
209
Series
2013-CR6
Class
B
3.397%
due
03/10/46
(Þ)
211
212
Series
2014-277P
Class
A
3.732%
due
08/10/49
(~)(Ê)(Þ)
205
220
Series
2016-GCT
Class
A
2.681%
due
08/10/29
(Þ)
140
141
Series
2019-521F
Class
D
1.735%
due
06/15/34
(Ê)(Þ)
899
847
CORE
Mortgage
Trust
Series
2019-CORE
Class
D
1.835%
due
12/15/31
(Ê)(Þ)
1,520
1,452
Countrywide
Alternative
Loan
Trust
Series
2007-16CB
Class
1A5
2.886%
due
08/25/37
(Ê)
388
289
Credit
Suisse
Mortgage
Capital
Certificates
Series
2017-CHOP
Class
G
8.093%
due
07/15/32
(Ê)(Þ)
600
370
Series
2019-ICE4
Class
A
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
89
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.165%
due
05/15/36
(Ê)(Þ)
170
168
Series
2019-ICE4
Class
E
2.335%
due
05/15/36
(Ê)(Þ)
1,282
1,224
Credit
Suisse
Mortgage
Securities
Corp.
Trust
4.764%
due
12/15/22
680
620
Credit
Suisse
Mortgage
Trust
Series
2018-J1
Class
A2
3.500%
due
02/25/48
(~)(Ê)(Þ)
965
1,000
DBGS
Mortgage
Trust
Series
2019-1735
Class
D
4.334%
due
04/10/37
(~)(Ê)(Þ)
985
910
Deephaven
Residential
Mortgage
Trust
Series
2018-4A
Class
A1
4.080%
due
10/25/58
(~)(Ê)(Þ)
1,563
1,577
Deutsche
Bank
Commercial
Mortgage
Trust
Series
2016-C3
Class
A5
2.890%
due
08/10/49
240
257
Deutsche
Mortgage
Securities,
Inc.
Re-
REMIC
Trust
Series
2007-WM1
Class
A1
3.685%
due
06/27/37
(~)(Ê)(Þ)
381
363
Eagle
Re,
Ltd.
Series
2020-1
Class
M1A
1.068%
due
01/25/30
(Ê)(Þ)
511
503
Fannie
Mae
4.500%
due
2024
2
2
4.500%
due
2025
100
107
2.560%
due
2028
370
405
2.790%
due
2029
300
337
3.160%
due
2029
49
56
3.260%
due
2029
30
35
2.260%
due
2030
199
216
3.500%
due
2030
85
90
2.600%
due
2031
375
415
2.765%
due
2031
100
112
2.770%
due
2031
100
112
2.850%
due
2031
100
113
5.000%
due
2031
88
97
2.500%
due
2032
1,149
1,216
6.000%
due
2032
18
21
2.500%
due
2033
1,420
1,504
3.000%
due
2033
828
882
3.500%
due
2033
602
645
5.000%
due
2033
5
6
3.500%
due
2034
125
134
5.500%
due
2034
16
18
2.500%
due
2035
2,465
2,611
4.500%
due
2035
367
401
5.500%
due
2037
94
109
5.500%
due
2038
419
483
6.000%
due
2039
37
43
4.000%
due
2040
255
287
5.500%
due
2040
478
549
6.000%
due
2040
110
128
4.000%
due
2041
418
465
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
6.000%
due
2041
116
136
3.500%
due
2043
1,116
1,205
4.000%
due
2044
858
970
3.500%
due
2045
1,367
1,475
3.000%
due
2046
798
848
3.500%
due
2046
398
427
4.000%
due
2046
1,246
1,361
4.500%
due
2046
442
502
3.000%
due
2047
3,594
3,815
3.500%
due
2047
2,328
2,528
4.000%
due
2047
730
778
4.500%
due
2047
442
478
3.500%
due
2048
2,178
2,307
4.500%
due
2048
6,305
6,832
5.000%
due
2048
874
955
3.000%
due
2049
7,148
7,666
3.500%
due
2049
908
975
4.000%
due
2049
1,435
1,566
4.500%
due
2049
213
230
5.000%
due
2049
1,190
1,298
2.000%
due
2050
4,400
4,487
2.500%
due
2050
16,020
16,830
2.500%
due
2050
3,675
3,900
2.500%
due
2050
1,800
1,877
3.000%
due
2050
9,917
10,557
3.000%
due
2050
4,294
4,585
3.500%
due
2050
3,888
4,131
4.000%
due
2056
1,035
1,142
4.500%
due
2056
255
284
5.500%
due
2056
238
265
3.500%
due
2057
751
817
4.000%
due
2057
140
155
4.500%
due
2057
211
236
15
Year
TBA(Ï)
2.000%
2,900
2,998
30
Year
TBA(Ï)
2.000%
2,200
2,250
2.500%
2,400
2,501
Fannie
Mae
Aces
Series
2019-M4
Class
A2
3.610%
due
02/25/31
90
107
Series
2019-M5
Class
A2
3.273%
due
02/25/29
150
173
Series
2019-M6
Class
A2
3.450%
due
01/01/29
170
196
Fannie
Mae
Connecticut
Avenue
Securities
Series
2014-C02
Class
1M2
5.086%
due
05/25/24
(Ê)
739
647
Series
2014-C03
Class
1M2
5.486%
due
07/25/24
(Ê)
1,397
1,223
Series
2014-C04
Class
1M2
5.068%
due
11/25/24
(Ê)
685
703
Series
2016-C04
Class
1M2
4.418%
due
01/25/29
(Ê)
41
43
Series
2016-C06
Class
1M2
4.418%
due
04/25/29
(Ê)
1,784
1,863
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
90
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2017-C01
Class
1M2
3.718%
due
07/25/29
(Ê)
681
692
Series
2017-C05
Class
1M2
2.368%
due
01/25/30
(Ê)
589
577
Series
2017-C07
Class
1M2
2.568%
due
05/25/30
(Ê)
294
287
Series
2018-C03
Class
1M2
2.318%
due
10/25/30
(Ê)
700
688
Series
2019-R07
Class
1M2
2.268%
due
10/25/39
(Ê)(Þ)
710
688
Fannie
Mae
REMICS
2.000%
due
07/25/50
(Š)
100
101
Series
1999-56
Class
Z
7.000%
due
12/18/29
8
9
Series
2004-W5
Class
A1
6.000%
due
02/25/47
147
176
Series
2005-24
Class
ZE
5.000%
due
04/25/35
169
193
Series
2012-35
Class
SC
Interest
Only
STRIP
4.015%
due
04/25/42
(Ê)
19
4
Series
2012-55
Class
PC
3.500%
due
05/25/42
581
632
Series
2013-54
Class
BS
Interest
Only
STRIP
3.665%
due
06/25/43
(Ê)
87
21
Series
2013-124
Class
SB
Interest
Only
STRIP
3.465%
due
12/25/43
(Ê)
99
21
Series
2016-23
Class
ST
Interest
Only
STRIP
3.515%
due
11/25/45
(Ê)
328
71
Series
2016-61
Class
BS
Interest
Only
STRIP
3.615%
due
09/25/46
(Ê)
277
53
Series
2017-76
Class
SB
Interest
Only
STRIP
3.615%
due
10/25/57
(Ê)
307
58
Series
2017-85
Class
SC
Interest
Only
STRIP
3.715%
due
11/25/47
(Ê)
61
12
Fannie
Mae-Aces
Series
2013-M6
Class
1AC
3.552%
due
02/25/43
(~)(Ê)
85
95
Series
2018-M9
Class
APT2
3.228%
due
04/25/28
(~)(Ê)
200
224
Series
2019-M1
Class
A2
3.673%
due
09/25/28
(~)(Ê)
80
94
Series
2019-M19
Class
A2
2.560%
due
09/25/29
389
428
Series
2019-M23
Class
3A3
2.720%
due
10/25/31
(~)(Ê)
200
216
Series
2019-M27
Class
A2
2.700%
due
11/25/40
100
112
Series
2019-M28
Class
AV
2.232%
due
02/25/27
262
280
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Flagstar
Mortgage
Trust
Series
2017-2
Class
A5
3.500%
due
10/25/47
(~)(Ê)(Þ)
404
409
Series
2018-2
Class
A4
3.500%
due
04/25/48
(~)(Ê)(Þ)
197
203
Freddie
Mac
3.500%
due
2030
88
93
2.500%
due
2031
4,023
4,260
4.500%
due
2034
140
154
5.500%
due
2038
302
352
6.000%
due
2038
70
82
5.000%
due
2040
185
213
4.000%
due
2041
1,081
1,220
4.500%
due
2041
185
206
5.500%
due
2041
194
223
3.500%
due
2043
858
945
4.000%
due
2044
484
534
3.500%
due
2045
1,362
1,490
4.000%
due
2045
966
1,046
3.000%
due
2046
2,792
3,026
4.000%
due
2046
283
305
4.500%
due
2046
222
242
2.542%
due
2047(~)(Ê)
229
237
3.000%
due
2047
1,008
1,086
3.000%
due
2048
165
178
3.500%
due
2048
64
68
4.000%
due
2048
673
716
4.500%
due
2048
463
498
5.000%
due
2048
162
177
3.000%
due
2049
553
589
4.000%
due
2049
1,246
1,322
4.500%
due
2049
676
740
5.000%
due
2049
260
283
2.500%
due
2050
3,145
3,313
3.000%
due
2050
8,887
9,436
3.500%
due
2050
3,023
3,190
4.000%
due
2050
190
203
4.500%
due
2050
285
308
5.000%
due
2050
427
466
Series
2020-1
Class
M
4.250%
due
08/25/59
(~)(Ê)(Þ)
720
638
Freddie
Mac
Multifamily
Structured
Pass-Through
Certificates
Series
2016-K058
Class
X1
Interest
Only
STRIP
0.926%
due
08/25/26
(~)(Ê)
4,082
201
Series
2019-K091
Class
A2
3.505%
due
03/25/29
110
130
Freddie
Mac
Reference
REMICS
Series
2006-R007
Class
ZA
6.000%
due
05/15/36
197
235
Freddie
Mac
REMICS
Series
2003-2624
Class
QH
5.000%
due
06/15/33
61
70
Series
2010-3632
Class
PK
5.000%
due
02/15/40
121
136
Series
2010-3653
Class
B
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
91
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.500%
due
04/15/30
188
207
Series
2011-3973
Class
SA
Interest
Only
STRIP
4.017%
due
12/15/41
(Ê)
302
69
Series
2012-4010
Class
KM
3.000%
due
01/15/42
105
112
Series
2018-4813
Class
CJ
3.000%
due
08/15/48
72
75
Series
2019-RR01
Class
X
Interest
Only
STRIP
1.534%
due
06/25/28
(~)(Ê)
2,500
255
Freddie
Mac
Strips
Series
2014-334
Class
S7
Interest
Only
STRIP
3.627%
due
08/15/44
(Ê)
142
31
Series
2016-353
Class
S1
Interest
Only
STRIP
3.527%
due
12/15/46
(Ê)
68
14
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
Series
2014-HQ2
Class
M3
3.918%
due
09/25/24
(Ê)
522
533
Series
2015-DN1
Class
M3
4.318%
due
01/25/25
(Ê)
417
423
Series
2015-DNA3
Class
M3
4.868%
due
04/25/28
(Ê)
830
864
Series
2015-DNA3
Class
M3F
6.186%
due
04/25/28
(Ê)
760
771
Series
2016-DNA2
Class
M3
4.818%
due
10/25/28
(Ê)
1,686
1,755
Series
2016-DNA4
Class
M3
3.968%
due
03/25/29
(Ê)
2,141
2,162
Series
2017-DNA1
Class
M2
3.418%
due
07/25/29
(Ê)
675
681
Series
2017-DNA2
Class
B1
5.318%
due
10/25/29
(Ê)
510
527
Series
2017-DNA2
Class
M2
5.936%
due
10/25/29
(Ê)
440
446
Series
2017-DNA3
Class
M2
2.668%
due
03/25/30
(Ê)
1,617
1,625
Series
2018-DNA2
Class
M2
2.318%
due
12/25/30
(Ê)(Þ)
980
942
Ginnie
Mae
30
Year
TBA(Ï)
2.500%
1,900
1,999
3.000%
800
847
Ginnie
Mae
I
3.000%
due
2042
340
362
3.500%
due
2048
74
79
Ginnie
Mae
II
3.500%
due
2044
78
84
3.500%
due
2045
30
32
3.000%
due
2046
234
249
3.500%
due
2047
295
315
4.000%
due
2047
647
695
4.500%
due
2048
1,537
1,649
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.000%
due
2048
476
520
3.500%
due
2049
235
243
4.000%
due
2049
495
535
4.500%
due
2049
566
605
5.000%
due
2049
964
1,047
3.000%
due
2050
298
316
3.500%
due
2050
99
106
4.000%
due
2050
99
108
Ginnie
Mae
REMICS
Series
2012-135
Class
IO
Interest
Only
STRIP
0.607%
due
01/16/53
(~)(Ê)
1,439
43
Series
2013-53
Class
OI
Interest
Only
STRIP
3.500%
due
04/20/43
638
65
Series
2013-107
Class
AD
2.694%
due
11/16/47
(~)(Ê)
188
198
Series
2014-17
Class
AM
2.580%
due
06/16/48
(~)(Ê)
70
73
Series
2016-21
Class
ST
Interest
Only
STRIP
5.960%
due
02/20/46
(Ê)
212
47
Series
2016-51
Class
NS
Interest
Only
STRIP
5.860%
due
04/20/46
(Ê)
98
19
Series
2018-130
Class
A
3.250%
due
05/16/59
42
44
Series
2019-123
Class
A
3.000%
due
10/20/49
89
96
Series
2020-47
Class
MI
Interest
Only
STRIP
3.500%
due
04/20/50
398
67
Series
2020-47
Class
NI
Interest
Only
STRIP
3.500%
due
04/20/50
100
18
Series
2020-H09
Class
FL
1.340%
due
05/20/70
(Ê)
200
208
Series
2020-H09
Class
NF
1.440%
due
04/20/70
(Ê)
98
101
Grace
Mortgage
Trust
Series
2014-GRCE
Class
A
3.369%
due
06/10/28
(Þ)
393
394
GS
Mortgage
Securities
Corp.
II
Series
2018-SRP5
Class
A
1.485%
due
09/15/31
(Ê)(Þ)
490
447
GS
Mortgage
Securities
Trust
Series
2013-GC14
Class
AS
4.507%
due
08/10/46
(Þ)
235
249
Series
2019-SOHO
Class
A
1.085%
due
06/15/36
(Ê)(Þ)
630
614
Hawaii
Hotel
Trust
Series
2019-MAUI
Class
C
1.835%
due
05/15/38
(Ê)(Þ)
940
846
Hilton
USA
Trust
Series
2016-HHV
Class
D
4.333%
due
11/05/38
(~)(Ê)(Þ)
1,240
1,138
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
92
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2016-HHV
Class
E
4.333%
due
11/05/38
(~)(Ê)(Þ)
600
522
Series
2016-SFP
Class
A
2.828%
due
11/05/35
(Þ)
226
223
HMH
Trust
Series
2017-NSS
Class
E
6.292%
due
07/05/31
(Þ)
1,170
1,058
Hospitality
Mortgage
Trust
Series
2019-HIT
Class
D
2.185%
due
11/15/36
(Ê)(Þ)
1,225
1,100
IndyMac
Index
Mortgage
Loan
Trust
Series
2006-AR2
Class
1A1A
0.388%
due
04/25/46
(Ê)
651
573
Series
2006-AR2
Class
1A1B
2.696%
due
04/25/46
(Ê)
488
429
Series
2007-FLX3
Class
A1
2.726%
due
06/25/37
(Ê)
176
158
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series
2004-LN2
Class
B
5.686%
due
07/15/41
(~)(Ê)
18
18
Series
2016-NINE
Class
A
2.949%
due
09/06/38
(~)(Ê)(Þ)
394
414
JPMorgan
Mortgage
Trust
Series
2015-3
Class
A5
3.500%
due
05/25/45
(~)(Ê)(Þ)
130
131
Series
2016-4
Class
A5
3.500%
due
10/25/46
(~)(Ê)(Þ)
379
384
Series
2017-2
Class
A6
3.000%
due
05/25/47
(~)(Ê)(Þ)
1,486
1,508
Series
2017-3
Class
1A5
3.500%
due
08/25/47
(~)(Ê)(Þ)
361
366
Series
2017-6
Class
A5
3.500%
due
12/25/48
(~)(Ê)(Þ)
194
197
Series
2018-3
Class
A1
3.500%
due
09/25/48
(~)(Ê)(Þ)
491
502
Series
2018-3
Class
A3
3.500%
due
09/25/48
(~)(Ê)(Þ)
2,073
2,119
Series
2018-4
Class
A1
3.500%
due
10/25/48
(~)(Ê)(Þ)
181
185
Series
2018-4
Class
A15
3.500%
due
10/25/48
(~)(Ê)(Þ)
340
343
Series
2018-5
Class
A1
3.500%
due
10/25/48
(~)(Ê)(Þ)
419
427
Series
2018-6
Class
1A4
3.500%
due
12/25/48
(~)(Ê)(Þ)
370
370
Series
2018-8
Class
A15
4.000%
due
01/25/49
(~)(Ê)(Þ)
55
55
Series
2018-8
Class
A5
4.000%
due
01/25/49
(~)(Ê)(Þ)
747
754
Series
2018-9
Class
A15
4.000%
due
02/25/49
(~)(Ê)(Þ)
32
32
Series
2018-LTV1
Class
A4
4.000%
due
04/25/49
(~)(Ê)(Þ)
891
910
Series
2019-INV2
Class
A3
3.500%
due
02/25/50
(~)(Ê)(Þ)
738
755
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Legacy
Mortgage
Asset
Trust
Series
2019-GS7
Class
A1
3.250%
due
11/25/59
(~)(Ê)(Þ)
686
682
LSTAR
Securities
Investment,
Ltd.
Series
2019-4
Class
A1
1.673%
due
05/01/24
(Ê)(Þ)
394
363
ML-CFC
Commercial
Mortgage
Trust
Series
2007-5
Class
AJ
5.450%
due
08/12/48
(~)(Ê)
127
73
Series
2007-5
Class
AJFL
5.450%
due
08/12/48
(~)(Ê)(Þ)
126
73
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2016-C31
Class
A1
1.511%
due
11/15/49
146
147
Morgan
Stanley
Capital
I
Trust
Series
2011-C3
Class
A4
4.118%
due
07/15/49
78
79
Series
2015-MS1
Class
A4
3.779%
due
05/15/48
(~)(Ê)
200
221
Series
2016-UBS9
Class
A4
3.594%
due
03/15/49
205
221
Series
2018-BOP
Class
E
2.135%
due
06/15/35
(Ê)(Þ)
1,732
1,529
Series
2018-SUN
Class
E
2.135%
due
07/15/35
(Ê)(Þ)
1,955
1,740
Series
2019-BPR
Class
A
1.585%
due
05/15/36
(Ê)(Þ)
350
310
Morgan
Stanley
Capital
I,
Inc.
Series
2019-NUGS
Class
E
3.744%
due
12/15/36
(Ê)(Þ)
1,970
1,735
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
Series
2017-237P
Class
D
3.865%
due
09/13/39
(~)(Ê)(Þ)
1,500
1,405
Series
2017-237P
Class
XA
Interest
Only
STRIP
0.468%
due
09/13/39
(~)(Ê)(Þ)
8,761
204
Series
2017-237P
Class
XB
Interest
Only
STRIP
0.050%
due
09/13/39
(~)(Ê)(Þ)
5,418
34
MSCG
Trust
Series
2015-ALDR
Class
A2
3.577%
due
06/07/35
(~)(Ê)(Þ)
255
250
Natixis
Commercial
Mortgage
Securities
Trust
Series
2019-FAME
Class
A
3.047%
due
08/15/34
(Þ)
440
433
New
Residential
Mortgage
Loan
Trust
Series
2019-NQM4
Class
A2
2.644%
due
09/25/59
(~)(Ê)(Þ)
428
427
Nomura
Resecuritization
Trust
Series
2015-4R
Class
1A14
2.670%
due
03/26/47
(Ê)(Þ)
1,162
917
One
Market
Plaza
Trust
Series
2017-1MKT
Class
C
4.016%
due
02/10/32
(Þ)
217
223
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
93
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2017-1MKT
Class
D
4.146%
due
02/10/32
(Þ)
500
500
Series
2017-1MKT
Class
E
4.142%
due
02/10/32
(Þ)
595
589
PMT
Credit
Risk
Transfer
Trust
Series
2019-1R
Class
A
2.170%
due
03/27/24
(Ê)(Þ)
332
327
Series
2019-3R
Class
A
2.870%
due
10/27/22
(Ê)(Þ)
533
504
Radnor
RE,
Ltd.
Series
2020-1
Class
M1A
1.118%
due
02/25/30
(Ê)(Þ)
567
560
RBS
Commercial
Funding,
Inc.
Trust
Series
2013-GSP
Class
A
3.961%
due
01/15/32
(~)(Ê)(Þ)
200
203
Residential
Accredit
Loans,
Inc.
Series
2006-QO7
Class
2A1
3.247%
due
09/25/46
(Ê)
837
732
Residential
Asset
Securitization
Trust
Series
2003-A15
Class
1A2
2.936%
due
02/25/34
(Ê)
16
14
SBALR
Commercial
Mortgage
Trust
Series
2020-RR1
Class
C
3.979%
due
02/13/53
(~)(Ê)
410
401
Sequoia
Mortgage
Trust
Series
2013-4
Class
A3
1.550%
due
04/25/43
(~)(Ê)
1,059
1,060
Series
2015-1
Class
A1
3.500%
due
01/25/45
(~)(Ê)(Þ)
404
417
Structured
Adjustable
Rate
Mortgage
Loan
Trust
Series
2006-5
Class
3A
4.249%
due
06/25/36
(~)(Ê)
1,044
808
Tharaldson
Hotel
Portfolio
Trust
Series
2018-THL
Class
A
0.925%
due
11/11/34
(Ê)(Þ)
243
230
Verus
Securitization
Trust
Series
2019-4
Class
A1
2.642%
due
11/25/59
(~)(Ê)(Þ)
1,185
1,204
Washington
Mutual
Mortgage
Pass-
Through
Certificates
Trust
Series
2003-AR7
Class
A7
4.148%
due
08/25/33
(~)(Ê)
43
41
Series
2004-AR4
Class
A6
4.453%
due
06/25/34
(~)(Ê)
382
364
Series
2005-10
Class
3CB1
6.000%
due
11/25/35
741
681
Series
2006-AR1
Class
2A1A
3.467%
due
01/25/46
(Ê)
305
295
Wells
Fargo
Commercial
Mortgage
Trust
Series
2017-RB1
Class
XA
Interest
Only
STRIP
1.403%
due
03/15/50
(~)(Ê)
1,925
126
Wells
Fargo
Mortgage-Backed
Securities
Trust
Series
2006-AR5
Class
1A1
5.079%
due
04/25/36
(~)(Ê)
922
883
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
WinWater
Mortgage
Loan
Trust
Series
2014-1
Class
A1
3.847%
due
06/20/44
(~)(Ê)(Þ)
457
474
Worldwide
Plaza
Trust
Series
2017-WWP
Class
A
3.526%
due
11/10/36
(Þ)
452
498
240,479
Non-US
Bonds
-
4.6%
Argentina
Treasury
Bond
Series
CER
1.000%
due
08/05/21
ARS
6,790
71
Argentine
Bonos
del
Tesoro
18.200%
due
10/03/21
ARS
5,600
44
Brazil
Notas
do
Tesouro
Nacional
Series
NTNB
6.000%
due
05/15/45
BRL
218
169
Series
NTNF
10.000%
due
01/01/23
BRL
3,497
730
10.000%
due
01/01/25
BRL
1,887
406
10.000%
due
01/01/27
BRL
465
101
Canadian
Government
International
Bond
0.750%
due
09/01/21
CAD
857
635
1.500%
due
06/01/23
CAD
1,259
959
2.250%
due
06/01/25
CAD
966
777
1.000%
due
06/01/27
CAD
972
745
Colombian
Titulos
de
Tesoreria
Series
B
10.000%
due
07/24/24
COP
7,318,000
2,396
6.000%
due
04/28/28
COP
2,418,700
653
Indonesia
Treasury
Bond
Series
FR56
8.375%
due
09/15/26
IDR
4,651,000
351
Series
FR59
7.000%
due
05/15/27
IDR
6,282,000
440
Series
FR68
8.375%
due
03/15/34
IDR
8,068,000
594
Series
FR77
8.125%
due
05/15/24
IDR
2,537,000
188
Series
FR78
8.250%
due
05/15/29
IDR
15,784,000
1,176
Italy
Buoni
Poliennali
Del
Tesoro
2.300%
due
10/15/21
EUR
3,130
3,624
Japan
10
Year
Government
International
Bond
Series
356
0.100%
due
09/20/29
JPY
67,950
635
Japan
20
Year
Government
International
Bond
Series
170
0.300%
due
09/20/39
JPY
60,000
545
Malaysia
Government
International
Bond
Series
0111
4.160%
due
07/15/21
MYR
150
36
Series
0114
4.181%
due
07/15/24
MYR
4,640
1,155
Series
0116
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
94
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.800%
due
08/17/23
MYR
2,149
523
Series
0117
3.882%
due
03/10/22
MYR
440
106
Series
0119
3.906%
due
07/15/26
MYR
215
54
Series
0218
3.757%
due
04/20/23
MYR
1,887
458
Series
0314
4.048%
due
09/30/21
MYR
610
146
Series
0319
3.478%
due
06/14/24
MYR
83
20
Mexican
Bonos
Series
M
20
8.500%
due
05/31/29
MXN
27,440
1,413
Series
M
30
10.000%
due
11/20/36
MXN
20,523
1,207
Series
M
7.750%
due
05/29/31
MXN
9,123
449
7.750%
due
11/13/42
MXN
82,307
3,911
8.000%
due
11/07/47
MXN
38,160
1,860
Mexican
Bonos
de
Desarrollo
Series
M
7.750%
due
11/23/34
MXN
5,144
254
Peru
Government
International
Bond
5.700%
due
08/12/24
PEN
3,310
1,086
6.900%
due
08/12/37
PEN
1,861
631
Russian
Federal
Bond
-
OFZ
Series
6207
8.150%
due
02/03/27
RUB
48,740
789
Series
6219
7.750%
due
09/16/26
RUB
31,660
501
Series
6224
6.900%
due
05/23/29
RUB
56,020
851
Series
6225
7.250%
due
05/10/34
RUB
1,960
31
Series
6228
7.650%
due
04/10/30
RUB
61,470
979
Series
6230
7.700%
due
03/16/39
RUB
42,470
699
Singapore
Government
International
Bond
1.250%
due
10/01/21
SGD
972
706
3.125%
due
09/01/22
SGD
461
351
2.750%
due
07/01/23
SGD
836
642
3.000%
due
09/01/24
SGD
823
652
2.125%
due
06/01/26
SGD
2,930
2,285
3.500%
due
03/01/27
SGD
316
268
2.875%
due
07/01/29
SGD
549
461
2.875%
due
09/01/30
SGD
1,200
1,019
Spain
Government
International
Bond
1.950%
due
07/30/30
(Þ)
EUR
840
1,086
39,868
United
States
Government
Treasuries
-
9.3%
United
States
Treasury
Inflation
Indexed
Bonds
0.125%
due
01/15/22
640
649
0.375%
due
07/15/23
5,462
5,694
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
0.375%
due
07/15/25
3,480
3,721
3.375%
due
04/15/32
3,186
4,744
2.125%
due
02/15/40
1,109
1,636
1.375%
due
02/15/44
1,739
2,374
1.000%
due
02/15/46
1,007
1,302
0.875%
due
02/15/47
2,284
2,915
1.000%
due
02/15/48
759
1,004
1.000%
due
02/15/49
3,108
4,151
0.250%
due
02/15/50
1,476
1,657
United
States
Treasury
Notes
1.500%
due
11/30/21
4,985
5,079
0.125%
due
05/31/22
3,380
3,377
1.875%
due
05/31/22
1,155
1,193
1.625%
due
08/15/22
5,350
5,516
1.750%
due
05/15/23
4,025
4,206
1.375%
due
06/30/23
300
311
1.250%
due
07/31/23
1,510
1,560
1.250%
due
08/31/24
270
281
2.000%
due
02/15/25
2,035
2,197
0.375%
due
04/30/25
520
522
2.125%
due
05/15/25
265
289
2.000%
due
08/15/25
1,298
1,409
3.000%
due
10/31/25
425
485
2.250%
due
11/15/25
1,165
1,284
1.625%
due
02/15/26
1,578
1,688
2.250%
due
03/31/26
660
730
1.625%
due
05/15/26
1,860
1,993
1.500%
due
08/15/26
1,110
1,183
0.500%
due
04/30/27
20
20
2.375%
due
05/15/27
480
542
0.500%
due
05/31/27
2,525
2,528
2.750%
due
02/15/28
425
496
2.375%
due
05/15/29
305
352
2.750%
due
11/15/42
735
941
2.875%
due
05/15/43
130
170
3.125%
due
08/15/44
570
777
2.875%
due
08/15/45
1,650
2,174
3.000%
due
05/15/47
235
320
2.750%
due
11/15/47
1,100
1,438
3.000%
due
02/15/48
505
691
3.125%
due
05/15/48
440
616
3.375%
due
11/15/48
300
441
2.000%
due
02/15/50
2,050
2,346
1.250%
due
05/15/50
3,740
3,591
80,593
Total
Long-Term
Investments
(cost
$723,918)
742,403
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
—
Total
Common
Stocks
(cost
$44)
—
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
95
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Short-Term
Investments
-
13.2%
ABB
Treasury
Center,
Inc.
4.000%
due
06/15/21
(Þ)
220
227
Apple,
Inc.
2.000%
due
11/13/20
80
81
Brazil
Notas
do
Tesouro
Nacional
Series
NTNF
10.000%
due
01/01/21
BRL
4,005
764
Chubb
INA
Holdings,
Inc.
2.300%
due
11/03/20
20
20
Daimler
Finance
NA
LLC
2.875%
due
03/10/21
(Þ)
320
323
Dell
International
LLC
/
EMC
Corp.
4.420%
due
06/15/21
(Þ)
430
442
Delta
Air
Lines,
Inc.
3.400%
due
04/19/21
170
165
DNB
Bank
ASA
2.375%
due
06/02/21
(Þ)
550
560
Fannie
Mae
4.316%
due
01/01/21
(~)(Ê)
314
316
Federal
Home
Loan
Banks
0.200%
due
10/07/20
(Ê)
660
660
Freddie
Mac
0.120%
due
09/10/20
(Ê)
290
290
General
Motors
Financial
Co.,
Inc.
2.450%
due
11/06/20
30
30
Gilead
Sciences,
Inc.
2.550%
due
09/01/20
120
120
JPMorgan
Chase
&
Co.
4.250%
due
10/15/20
300
303
2.550%
due
03/01/21
30
30
Kinder
Morgan
Energy
Partners,
LP
3.500%
due
03/01/21
30
30
Malaysia
Government
International
Bond
Series
0315
3.659%
due
10/15/20
MYR
1,310
307
Netflix,
Inc.
5.375%
due
02/01/21
60
61
Nordea
Bank
AB
4.875%
due
05/13/21
(Þ)
265
274
Occidental
Petroleum
Corp.
1.398%
due
02/08/21
(Ê)
190
187
4.850%
due
03/15/21
80
79
Poland
Government
International
Bond
5.125%
due
04/21/21
550
571
Progress
Energy,
Inc.
4.400%
due
01/15/21
30
30
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Royal
Bank
of
Canada
2.150%
due
10/26/20
70
70
Series
GMTN
3.200%
due
04/30/21
70
72
Singapore
Government
International
Bond
2.250%
due
06/01/21
SGD
321
234
Svenska
Handelsbanken
AB
Series
BKNT
3.350%
due
05/24/21
250
256
Time
Warner
Cable
LLC
4.125%
due
02/15/21
150
153
Toronto-Dominion
Bank
(The)
3.250%
due
06/11/21
90
92
U.S.
Cash
Management
Fund(@)
76,277,276(∞)
76,270
United
States
Treasury
Bills
0.108%
due
07/16/20
(ç)(ž)
7,370
7,369
0.129%
due
08/13/20
(ç)(ž)
7,513
7,512
0.133%
due
09/10/20
(ž)
7,515
7,514
0.148%
due
10/08/20
(ž)
3,618
3,617
0.156%
due
11/05/20
(ž)
2,293
2,291
Series
WI
0.134%
due
08/18/20
(ç)(ž)
1,970
1,970
United
States
Treasury
Notes
1.125%
due
06/30/21
340
343
UnitedHealth
Group,
Inc.
3.875%
due
10/15/20
10
10
Class
A
2.700%
due
07/15/20
70
70
US
Bank
NA
Series
BKNT
3.150%
due
04/26/21
250
255
Wells
Fargo
&
Co.
2.500%
due
03/04/21
400
406
4.600%
due
04/01/21
220
227
Westpac
Banking
Corp.
2.600%
due
11/23/20
80
81
Total
Short-Term
Investments
(cost
$115,006)
114,682
Total
Investments
-
98.6%
(identified
cost
$838,968)
857,085
Other
Assets
and
Liabilities,
Net
-
1.4%
12,520
Net
Assets
-
100.0%
869,605
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
96
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
19.5%
1011778
BC
Unlimited
Liability
Co.
/
New
Red
Finance,
Inc.
03/15/19
120,000
100.56
121
120
A10
Securitization
LLC
06/23/17
961,000
100.00
961
913
ABB
Treasury
Center,
Inc.
03/05/19
220,000
100.91
222
227
AbbVie,
Inc.
11/12/19
480,000
100.88
484
534
AbbVie,
Inc.
11/12/19
100,000
99.89
100
109
AbbVie,
Inc.
11/12/19
440,000
99.92
440
455
AbbVie,
Inc.
11/12/19
390,000
99.92
390
415
AbbVie,
Inc.
03/25/20
20,000
97.60
20
24
AbbVie,
Inc.
05/12/20
285,000
102.70
293
297
AbbVie,
Inc.
05/12/20
706,000
102.79
726
739
AbbVie,
Inc.
05/12/20
60,000
107.99
65
67
AbbVie,
Inc.
05/12/20
60,000
107.99
65
67
AbbVie,
Inc.
05/12/20
10,000
116.28
12
12
Abu
Dhabi
Government
International
Bond
10/03/17
200,000
99.84
200
207
Abu
Dhabi
Government
International
Bond
04/08/20
520,000
96.15
500
614
ACE
Securities
Corp.
Mortgage
Loan
Trust
03/08/17
526,497
93.76
494
495
Adani
Abbot
Point
Terminal
Pty,
Ltd.
02/01/19
253,000
91.77
232
218
Air
Liquide
Finance
SA
09/03/19
733,000
99.69
731
742
Alimentation
Couche-Tard,
Inc.
09/19/17
702,000
102.83
722
753
Ambac
Assurance
Corp.
02/09/17
881
31.23
—
1
Ambac
LSNI
LLC
02/09/17
3,716,094
99.00
3,747
3,670
Anglo
American
Capital
PLC
09/06/17
200,000
99.97
200
210
Anglo
American
Capital
PLC
05/14/20
712,000
107.69
767
804
AP
Moller
-
Maersk
A/S
05/12/20
767,000
99.30
762
823
Applebee's
Funding
LLC
/
IHOP
Funding
LLC
05/28/19
340,000
100.00
340
301
Avis
Budget
Rental
Car
Funding
LLC
04/16/19
600,000
100.35
602
608
Banco
de
Bogota
SA
09/22/17
686,000
104.41
716
696
Banco
de
Credito
del
Peru
12/04/19
693,000
104.46
724
730
Banco
Inbursa
SA
Institucion
de
Banca
Multiple
01/06/20
711,000
103.69
737
730
Bangkok
Bank
PCL
11/09/18
219,000
99.53
218
230
Banistmo
SA
12/07/17
729,000
100.52
733
728
Bausch
Health
Cos.,
Inc.
04/15/20
70,000
109.58
77
73
Bausch
Health
Cos.,
Inc.
05/11/20
110,000
100.00
110
111
Bayer
US
Finance
LLC
08/02/18
726,000
100.54
730
792
BBVA
Bancomer
SA
01/06/20
667,000
107.80
719
711
BCAP
LLC
Trust
07/21/16
699,396
76.03
532
612
BCAP
LLC
Trust
03/20/17
518,799
86.17
447
455
BCAP
LLC
Trust
03/20/17
817,141
86.20
704
717
Berkshire
Hathaway
Energy
Co.
04/07/20
699,000
108.23
757
796
Bharti
Airtel
International
Netherlands
BV
09/26/19
693,000
104.42
724
724
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
11/04/16
732,188
99.73
730
682
Blue
Racer
Midstream
LLC
/
Blue
Racer
Finance
Corp.
02/25/19
20,000
101.49
20
20
BMW
US
Capital
LLC
03/20/18
20,000
98.41
20
20
BNP
Paribas
SA
08/07/18
200,000
99.55
199
230
BNP
Paribas
SA
01/03/19
260,000
100.00
260
288
BNP
Paribas
SA
06/02/20
200,000
100.00
200
204
BNP
Paribas
SA
06/10/20
722,000
111.50
805
809
Bristol-Myers
Squibb
Co.
05/07/19
190,000
100.11
190
213
Bristol-Myers
Squibb
Co.
05/07/19
400,000
101.60
406
433
Bristol-Myers
Squibb
Co.
05/07/19
170,000
99.25
169
198
Bristol-Myers
Squibb
Co.
05/07/19
90,000
99.83
90
94
Bristol-Myers
Squibb
Co.
11/20/19
70,000
100.27
70
71
Bristol-Myers
Squibb
Co.
11/20/19
30,000
103.02
31
32
Bristol-Myers
Squibb
Co.
11/20/19
230,000
107.37
247
262
Bristol-Myers
Squibb
Co.
11/20/19
380,000
108.49
412
447
Bristol-Myers
Squibb
Co.
11/20/19
80,000
127.15
102
113
Broadcom,
Inc.
04/06/20
280,000
104.11
291
315
Broadcom,
Inc.
05/05/20
220,000
99.87
220
234
Broadcom,
Inc.
05/05/20
180,000
99.99
180
186
BX
Commercial
Mortgage
Trust
03/02/18
1,575,000
99.47
1,567
1,439
BX
Commercial
Mortgage
Trust
06/01/18
1,650,000
100.00
1,650
1,493
BX
Commercial
Mortgage
Trust
03/05/19
133,000
100.47
134
128
BX
Commercial
Mortgage
Trust
04/18/19
790,000
100.06
790
754
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
97
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
BX
Commercial
Mortgage
Trust
10/09/19
1,050,941
100.00
1,051
1,045
BXP
Trust
10/30/17
818,000
100.70
824
896
CAL
Funding
II,
Ltd.
12/10/19
244,200
101.66
248
247
CAL
Funding
III,
Ltd.
06/28/17
553,700
99.99
554
554
CAMB
Commercial
Mortgage
Trust
01/25/19
1,651,000
100.00
1,651
1,548
CAMB
Commercial
Mortgage
Trust
01/25/19
987,000
100.13
988
933
Cameron
LNG
LLC
12/05/19
40,000
100.00
40
43
Cameron
LNG
LLC
12/05/19
230,000
102.72
236
253
Cargill,
Inc.
04/20/20
110,000
100.11
110
112
Carlyle
Global
Market
Strategies
CLO,
Ltd.
11/07/19
761,000
99.61
758
748
Carrier
Global
Corp.
02/13/20
40,000
100.00
40
41
Carrier
Global
Corp.
02/13/20
90,000
100.00
90
92
Carrier
Global
Corp.
02/13/20
20,000
100.00
20
20
Carrier
Global
Corp.
02/13/20
160,000
100.22
160
160
Carrier
Global
Corp.
02/18/20
60,000
101.65
61
58
Carrier
Global
Corp.
02/18/20
60,000
101.75
61
59
Carrier
Global
Corp.
06/16/20
50,000
99.85
50
50
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
03/04/20
270,000
100.32
271
273
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
04/14/20
10,000
101.97
10
10
Cedar
Funding,
Ltd.
07/03/18
1,600,000
100.00
1,600
1,561
Cigna
Corp.
02/04/20
335,000
134.47
450
478
Citigroup
Commercial
Mortgage
Trust
01/12/17
170,000
102.46
174
177
Citigroup
Commercial
Mortgage
Trust
02/12/19
1,418,000
0.99
1,402
1,380
Citigroup
Commercial
Mortgage
Trust
02/21/19
430,000
100.00
430
406
Citigroup
Mortgage
Loan
Trust,
Inc.
02/01/17
119,483
97.82
117
119
Commercial
Mortgage
Trust
01/22/16
195,000
1.06
206
209
Commercial
Mortgage
Trust
02/17/16
205,000
103.69
213
220
Commercial
Mortgage
Trust
07/25/16
140,000
102.12
143
141
Commercial
Mortgage
Trust
11/21/16
211,000
100.79
213
212
Commercial
Mortgage
Trust
06/05/19
899,000
100.00
899
847
Commerzbank
AG
06/24/20
213,000
113.52
242
240
CORE
Mortgage
Trust
03/01/19
1,520,000
100.00
1,520
1,452
Credit
Agricole
SA
06/11/20
734,000
110.05
808
811
Credit
Agricole
SA
06/09/20
250,000
100.00
250
253
Credit
Suisse
Group
AG
03/27/20
250,000
100.00
250
285
Credit
Suisse
Group
AG
06/02/20
330,000
100.00
330
334
Credit
Suisse
Mortgage
Capital
Certificates
06/20/17
600,000
99.58
598
370
Credit
Suisse
Mortgage
Capital
Certificates
05/28/19
170,000
100.00
170
168
Credit
Suisse
Mortgage
Capital
Certificates
05/28/19
1,282,000
100.00
1,282
1,224
Credit
Suisse
Mortgage
Trust
06/26/18
964,907
97.69
943
1,000
DAE
Funding
LLC
11/01/18
20,000
100.00
20
19
Daimler
Finance
NA
LLC
08/12/19
320,000
100.37
321
323
Danone
SA
10/26/16
890,000
99.95
890
907
Danone
SA
04/22/19
718,000
100.10
719
755
Danske
Bank
A/S
01/11/19
400,000
101.62
406
421
Danske
Bank
A/S
03/11/19
862,000
104.59
911
960
Danske
Bank
A/S
09/17/19
200,000
102.65
205
212
Danske
Bank
A/S
06/16/20
200,000
100.00
200
201
DBGS
Mortgage
Trust
04/03/19
985,000
101.36
998
910
DCP
Midstream
Operating,
LP
12/11/19
30,000
104.90
31
27
Deephaven
Residential
Mortgage
Trust
03/03/20
1,563,232
101.42
1,585
1,577
Dell
International
LLC
/
EMC
Corp.
05/17/16
430,000
100.91
434
442
Delta
Air
Lines
Pass-Through
Trust
04/27/20
1,412,000
102.35
1,448
1,457
Deutsche
Mortgage
Securities,
Inc.
Re-REMIC
Trust
01/04/17
380,533
100.60
383
363
Dividend
Solar
Loans
LLC
06/28/19
338,618
99.99
339
341
DNB
Bank
ASA
10/22/19
550,000
100.24
551
560
DP
World
PLC
10/03/19
200,000
115.29
231
218
Dresdner
Funding
Trust
I
06/23/20
265,000
138.43
367
363
Dryden
50
Senior
Loan
Fund
07/24/17
1,230,000
100.00
1,230
1,209
Eagle
Re,
Ltd.
01/27/20
511,000
100.00
511
503
Education
Loan
Asset-Backed
Trust
I
07/24/19
580,000
99.35
576
568
Electricite
de
France
SA
04/24/20
614,000
130.60
802
788
Enel
SpA
01/05/18
706,000
101.06
713
759
Eni
SpA
09/26/19
658,000
108.77
716
712
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
98
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
Equate
Petrochemical
BV
10/27/16
200,000
99.17
198
211
Falabella
SA
01/03/20
692,000
104.42
723
724
Fannie
Mae
Connecticut
Avenue
Securities
10/29/19
710,000
100.02
710
688
Flagstar
Mortgage
Trust
10/26/17
403,580
101.37
409
409
Flagstar
Mortgage
Trust
04/13/18
197,477
98.63
195
203
Flatiron
CLO,
Ltd.
11/21/19
1,000,000
100.09
1,001
983
Freddie
Mac
03/05/20
720,000
105.28
758
638
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
02/26/20
980,000
101.39
994
942
Fresenius
Medical
Care
US
Finance
II,
Inc.
06/16/16
110,000
102.51
113
119
Fresenius
Medical
Care
US
Finance
II,
Inc.
09/19/17
236,000
104.69
247
250
Gazprom
PJSC
Via
Gaz
Capital
SA
02/01/19
672,000
105.34
708
721
GFL
Environmental,
Inc.
04/22/20
70,000
100.00
70
71
Glencore
Funding
LLC
10/12/16
40,000
100.96
40
44
Glencore
Funding
LLC
09/13/17
330,000
100.95
333
354
Glencore
Funding
LLC
01/16/19
60,000
94.68
57
64
Glencore
Funding
LLC
03/05/19
410,000
100.88
414
439
Goldentree
Loan
Management
US
CLO
2,
Ltd.
10/26/18
1,860,000
100.03
1,861
1,821
Goldentree
Loan
Management
US
CLO
2,
Ltd.
04/24/20
1,147,000
100.00
1,147
1,150
Grace
Mortgage
Trust
05/19/17
393,000
103.06
405
394
GS
Mortgage
Securities
Corp.
II
06/06/18
490,000
100.00
490
447
GS
Mortgage
Securities
Trust
07/20/16
235,000
111.77
263
249
GS
Mortgage
Securities
Trust
05/31/19
630,000
100.00
630
614
Guardian
Life
Global
Funding
06/16/20
50,000
99.91
50
50
GUSAP
III,
LP
05/13/20
837,000
89.16
746
821
Hanesbrands,
Inc.
08/10/18
10,000
98.33
10
10
Hanesbrands,
Inc.
08/13/18
70,000
101.87
71
71
Hanesbrands,
Inc.
04/30/20
80,000
100.39
80
81
Hawaii
Hotel
Trust
05/16/19
940,000
100.00
940
846
Heineken
NV
10/22/19
710,000
102.17
725
743
Hilton
Domestic
Operating
Co.,
Inc.
04/16/20
40,000
100.00
40
40
Hilton
Domestic
Operating
Co.,
Inc.
04/16/20
120,000
100.32
120
120
Hilton
USA
Trust
11/22/16
1,261,397
89.21
1,152
1,138
Hilton
USA
Trust
11/22/16
578,602
89.21
528
522
Hilton
USA
Trust
05/26/17
226,000
99.72
225
223
HMH
Trust
06/09/17
1,170,000
99.99
1,170
1,058
Hospitality
Mortgage
Trust
05/16/19
1,225,291
100.00
1,225
1,100
ICICI
Bank,
Ltd.
09/06/18
782,000
101.37
793
805
Intesa
Sanpaolo
SpA
07/10/17
400,000
100.17
401
407
Intesa
Sanpaolo
SpA
01/05/18
200,000
99.86
200
206
Intesa
Sanpaolo
SpA
04/22/19
846,000
96.16
814
874
Intesa
Sanpaolo
SpA
06/22/20
292,000
104.45
305
299
Inversiones
CMPC
SA
09/22/17
214,000
102.26
219
224
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
10/30/17
394,000
98.92
390
414
JPMorgan
Mortgage
Trust
03/06/19
369,619
99.97
370
370
JPMorgan
Mortgage
Trust
03/30/17
130,256
101.34
132
131
JPMorgan
Mortgage
Trust
08/09/17
361,360
102.54
371
366
JPMorgan
Mortgage
Trust
10/26/17
379,294
101.04
383
384
JPMorgan
Mortgage
Trust
03/23/18
2,
072,938
100.93
2,
121
2,119
JPMorgan
Mortgage
Trust
03/23/18
491,088
100.93
503
502
JPMorgan
Mortgage
Trust
04/25/18
182,005
98.87
180
185
JPMorgan
Mortgage
Trust
04/25/18
337,446
98.87
334
343
JPMorgan
Mortgage
Trust
04/25/18
420,086
98.87
416
427
JPMorgan
Mortgage
Trust
08/16/18
54,573
100.47
55
55
JPMorgan
Mortgage
Trust
08/16/18
748,141
100.47
750
754
JPMorgan
Mortgage
Trust
09/20/18
31,735
100.52
32
32
JPMorgan
Mortgage
Trust
03/08/19
1,485,695
98.10
1,457
1,508
JPMorgan
Mortgage
Trust
05/30/19
193,713
100.87
195
197
JPMorgan
Mortgage
Trust
09/18/19
738,478
101.20
747
755
JPMorgan
Mortgage
Trust
05/15/20
890,752
103.35
921
910
KazMunayGas
National
Co.
JSC
04/17/18
200,000
100.00
200
226
Kinder
Morgan,
Inc.
04/23/20
703,000
108.85
765
794
KKR
Group
Finance
Co.
II
LLC
02/20/15
10,000
109.59
11
12
Kraft
Heinz
Foods
Co.
04/14/20
261,000
103.86
271
266
Kraft
Heinz
Foods
Co.
05/04/20
30,000
100.00
30
32
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
99
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
Kraft
Heinz
Foods
Co.
05/04/20
80,000
100.00
80
85
Kuwait
Government
International
Bond
03/13/17
210,000
99.31
209
234
Lamb
Weston
Holdings,
Inc.
12/01/16
60,000
99.74
60
62
Lamb
Weston
Holdings,
Inc.
05/07/20
10,000
100.00
10
11
LCM
XXIII,
Ltd.
01/29/20
1,020,000
100.00
1,020
998
LCM
XXV,
Ltd.
07/10/17
1,124,000
100.00
1,124
1,099
Legacy
Mortgage
Asset
Trust
05/23/19
419,129
100.00
419
418
Legacy
Mortgage
Asset
Trust
06/01/20
685,891
98.46
675
682
Levi
Strauss
&
Co.
04/14/20
70,000
100.52
70
70
Lloyds
Banking
Group
PLC
06/22/20
108,000
111.83
121
122
LSTAR
Securities
Investment,
Ltd.
05/17/19
394,108
100.00
394
363
Lukoil
International
Finance
BV
09/19/17
682,000
103.99
709
723
LYB
Finance
Co.
BV
02/15/19
186,000
117.99
219
249
Madison
Park
Funding
XIII,
Ltd.
11/07/19
574,000
99.66
572
565
Madison
Park
Funding
XVIII,
Ltd.
12/01/17
872,000
100.65
878
858
Madison
Park
Funding
XXVI,
Ltd.
09/05/17
780,000
100.00
780
762
Magnetite
XVIII,
Ltd.
10/31/18
1,488,000
100.00
1,488
1,466
Marks
&
Spencer
PLC
09/25/19
308,000
114.44
352
306
Mars,
Inc.
03/26/19
30,000
99.73
30
34
Mars,
Inc.
03/26/19
60,000
99.95
60
64
Midwest
Connector
Capital
Co.
LLC
06/04/19
267,000
101.27
270
274
Midwest
Connector
Capital
Co.
LLC
06/10/20
769,000
104.93
807
808
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets,
Ltd.
06/25/20
120,000
98.75
119
120
ML-CFC
Commercial
Mortgage
Trust
08/05/16
126,270
82.42
104
73
Mondelez
International
Holdings
Netherlands
BV
10/22/19
726,000
99.95
726
739
Morgan
Stanley
Capital
I
Trust
07/19/18
1,955,000
100.00
1,955
1,740
Morgan
Stanley
Capital
I
Trust
08/15/18
1,732,000
100.00
1,732
1,529
Morgan
Stanley
Capital
I
Trust
04/24/19
350,000
100.00
350
310
Morgan
Stanley
Capital
I,
Inc.
12/12/19
1,970,000
99.44
1,959
1,735
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
5,418,000
0.62
34
34
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
8,761,000
2.33
204
204
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
1,500,000
97.29
1,459
1,405
MSCG
Trust
05/19/15
255,000
101.37
258
250
National
Securities
Clearing
Corp.
04/16/20
250,000
99.91
250
254
Natixis
Commercial
Mortgage
Securities
Trust
08/29/19
440,000
102.86
453
433
NBK
SPC,
Ltd.
09/30/19
714,000
100.54
718
728
Nestle
Holdings,
Inc.
01/03/20
698,000
104.23
728
759
New
Residential
Mortgage
Loan
Trust
09/09/19
428,065
100.00
428
427
New
York
Life
Global
Funding
06/17/20
90,000
99.90
90
90
NGPL
PipeCo
LLC
09/26/19
553,000
129.30
715
675
Nomura
Resecuritization
Trust
07/22/16
1,161,676
59.68
693
917
Nordea
Bank
AB
06/04/19
265,000
101.67
269
274
Northern
Natural
Gas
Co.
08/02/18
631,000
109.02
688
753
NXP
BV
/
NXP
Funding
LLC
05/02/19
693,000
103.24
715
738
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA,
Inc.
04/29/20
80,000
100.52
80
84
One
Market
Plaza
Trust
02/15/17
500,000
100.02
500
500
One
Market
Plaza
Trust
02/15/17
217,000
102.65
223
223
One
Market
Plaza
Trust
02/15/17
595,000
97.98
583
589
Otis
Worldwide
Corp.
02/19/20
60,000
100.00
60
63
Otis
Worldwide
Corp.
02/19/20
60,000
100.00
60
63
Otis
Worldwide
Corp.
02/19/20
170,000
99.99
170
178
Park
Aerospace
Holdings,
Ltd.
02/25/19
50,000
101.55
51
47
Pernod
Ricard
SA
06/13/16
150,000
102.91
154
158
PMT
Credit
Risk
Transfer
Trust
03/21/19
332,054
100.00
332
327
PMT
Credit
Risk
Transfer
Trust
10/11/19
533,335
100.00
533
504
Preston
Ridge
Partners
Mortgage
LLC
02/14/20
2,642,300
99.84
2,637
2,627
Preston
Ridge
Partners
Mortgage
LLC
06/18/20
613,674
100.62
617
618
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
09/13/19
60,000
101.80
61
62
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
09/20/19
70,000
102.29
72
72
Principal
Life
Global
Funding
II
06/16/20
40,000
99.92
40
40
Prosus
NV
06/29/17
250,000
100.00
250
280
Provincia
de
Buenos
Aires
02/08/17
140,000
99.80
140
58
Qatar
Government
International
Bond
10/03/19
410,000
123.75
507
539
Qatar
Government
International
Bond
04/07/20
360,000
100.00
360
446
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
100
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
Radnor
RE,
Ltd.
01/21/20
567,000
100.00
567
560
Raytheon
Technologies
Corp.
06/08/20
708,000
106.56
754
762
Raytheon
Technologies
Corp.
06/08/20
50,000
108.52
54
54
RBS
Commercial
Funding,
Inc.
Trust
01/19/16
200,000
1.04
207
203
Reliance
Holding
USA,
Inc.
12/04/19
684,000
104.43
714
721
Riserva
CLO,
Ltd.
06/10/19
940,000
100.00
940
926
Roche
Holdings,
Inc.
01/03/20
669,000
100.06
669
685
Rockies
Express
Pipeline
LLC
06/23/20
306,000
94.04
288
282
Rockies
Express
Pipeline
LLC
06/25/20
200,000
93.75
188
186
Sabal
Trail
Transmission
LLC
08/02/18
663,000
105.60
700
740
Sands
China,
Ltd.
06/02/20
200,000
99.90
200
206
Santander
UK
Group
Holdings
PLC
03/05/19
701,000
102.26
717
760
Santander
UK
Group
Holdings
PLC
05/14/19
238,000
103.09
245
259
Saudi
Arabian
Oil
Co.
04/07/20
768,000
98.67
758
798
Schlumberger
Holdings
Corp.
12/10/15
40,000
99.96
40
44
Schneider
Electric
SE
02/04/19
800,000
101.62
813
840
Sequoia
Mortgage
Trust
10/21/16
404,209
102.97
416
417
Shackleton
CLO,
Ltd.
04/04/18
930,000
100.00
930
898
Siemens
Financieringsmaatschappij
NV
03/05/19
250,000
98.50
246
254
Siemens
Financieringsmaatschappij
NV
06/04/20
769,000
103.85
799
798
SMB
Private
Education
Loan
Trust
06/04/19
190,000
100.00
190
186
Societe
Generale
SA
12/11/19
700,000
106.81
748
757
SoFi
Professional
Loan
Program
Trust
12/12/19
730,000
103.65
757
765
Solar
Star
Funding
LLC
04/07/20
652,414
112.40
733
748
Spain
Government
International
Bond
05/20/20
EUR
840,000
125.97
1,058
1,086
SpringCastle
Funding
Asset-Backed
Notes
01/22/20
3,720,854
100.86
3,752
3,762
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
03/14/18
240,000
100.00
240
260
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
03/15/18
62,500
99.86
62
63
Standard
Chartered
PLC
05/13/20
447,000
104.13
465
473
Standard
Chartered
PLC
06/22/20
111,000
111.48
124
124
Sunrun
Atlas
Issuer
LLC
10/17/19
593,145
99.95
593
586
Swedbank
AB
05/26/20
200,000
99.89
200
202
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
12/11/19
30,000
101.60
30
29
Teachers
Insurance
&
Annuity
Association
of
America
06/14/16
340,000
115.19
392
437
Tennessee
Gas
Pipeline
Co.
LLC
02/19/20
210,000
99.93
210
215
Textainer
Marine
Containers,
Ltd.
05/11/17
715,660
100.00
716
711
Tharaldson
Hotel
Portfolio
Trust
01/22/18
243,024
99.95
243
230
THL
Credit
Wind
River
CLO,
Ltd.
10/02/17
1,003,540
100.00
1,004
983
T-Mobile
USA,
Inc.
04/02/20
300,000
99.29
298
334
T-Mobile
USA,
Inc.
04/14/20
30,000
105.97
32
33
T-Mobile
USA,
Inc.
04/20/20
490,000
105.02
515
534
Towd
Point
Mortgage
Trust
07/22/16
166,447
99.86
166
167
Towd
Point
Mortgage
Trust
07/07/17
397,163
100.54
399
407
Towd
Point
Mortgage
Trust
08/04/17
846,644
101.43
859
872
Towd
Point
Mortgage
Trust
09/18/17
809,597
100.59
814
828
Towd
Point
Mortgage
Trust
10/25/19
1,194,306
104.55
1,249
1,286
Towd
Point
Mortgage
Trust
10/31/19
1,309,410
101.83
1,333
1,382
Towd
Point
Mortgage
Trust
11/04/19
1,642,716
100.95
1,658
1,728
TransDigm
,
Inc.
04/09/20
80,000
102.42
82
80
TransDigm
,
Inc.
04/09/20
20,000
107.63
22
21
Triton
Container
Finance
IV
LLC
08/16/17
482,281
100.08
483
480
Triton
Container
Finance
V
LLC
03/13/18
192,200
99.98
192
192
Triton
Container
Finance
VI
LLC
06/07/17
532,415
99.07
527
531
Trust
Fibra
Uno
09/20/17
685,000
105.46
722
721
UBS
AG
04/14/20
220,000
99.88
220
224
UBS
Group
AG
03/16/17
200,000
100.00
200
227
UBS
Group
AG
03/16/17
270,000
100.00
270
283
UBS
Group
AG
01/28/19
660,000
102.29
675
686
UBS
Group
AG
09/20/19
200,000
100.77
202
216
UBS
Group
AG
05/26/20
200,000
103.02
206
207
UniCredit
SpA
01/08/19
1,042,000
102.49
1,075
1,101
USAA
Capital
Corp.
04/14/20
150,000
99.72
150
154
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
101
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
Verus
Securitization
Trust
03/06/20
1,184,532
101.18
1,198
1,204
Vistra
Operations
Co.
LLC
06/04/19
708,000
101.40
718
744
VOC
Escrow,
Ltd.
08/07/18
60,000
97.32
58
45
Volkswagen
Group
of
America
Finance
LLC
09/26/19
699,000
102.15
714
728
Voya
CLO,
Ltd.
02/18/20
2,464,000
100.00
2,464
2,401
WinWater
Mortgage
Loan
Trust
03/29/17
456,535
102.40
467
474
Woori
Bank
04/22/20
734,000
106.03
778
801
Worldwide
Plaza
Trust
10/31/17
452,000
102.61
464
498
169,224
For
a
description
of
restricted
securities
see
note
7
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
102
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
3
Month
LIBOR
3.250
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
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
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
Asurion
LLC
Term
Loan
B6
USD
3
Month
LIBOR
3.000
Atlantic
Aviation
FBO,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
3.750
BAC
Capital
Trust
XIV
USD
3
Month
LIBOR
0.400
Bank
of
America
Corp.
Secured
Overnight
Financing
Rate
2.150
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.040
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.780
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.810
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.310
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.370
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.210
Bank
of
America
Corp.
USD
3
Month
LIBOR
3.898
Bank
of
America
Corp.
USD
3
Month
LIBOR
0.790
Bank
of
America
Corp.
USD
3
Month
LIBOR
1.520
Bank
of
America
Corp.
USD
3
Month
LIBOR
3.150
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
Barclays
PLC
USD
3
Month
LIBOR
3.054
Bausch
Health
Americas,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
3.000
Bear
Stearns
ALT-A
Trust
USD
1
Month
LIBOR
0.750
Berry
Global,
Inc.
Term
Loan
W
USD
1
Month
LIBOR
2.000
BNC
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.160
BNP
Paribas
SA
USD
3
Month
LIBOR
2.235
BNP
Paribas
SA
Secured
Overnight
Financing
Rate
2.074
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
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
103
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
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
3
Month
LIBOR
2.500
Charter
Communications
Operating
LLC
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
2.750
Citigroup
Commercial
Mortgage
Trust
USD
1
Month
LIBOR
2.500
Citigroup
Mortgage
Loan
Trust,
Inc.
USD
1
Month
LIBOR
0.450
Citigroup
Mortgage
Loan
Trust,
Inc.
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,
Inc.
USD
3
Month
LIBOR
3.905
Citigroup,
Inc.
Secured
Overnight
Financing
Rate
3.914
Citigroup,
Inc.
Secured
Overnight
Financing
Rate
2.750
Citigroup,
Inc.
Secured
Overnight
Financing
Rate
1.667
Citigroup,
Inc.
Secured
Overnight
Financing
Rate
2.107
CityCenter
Holdings
LLC
Term
Loan
B
USD
1
Month
LIBOR
2.250
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
A
gricole
SA
Secured
Overnight
Financing
Rate
1.676
Credit
Suisse
Group
AG
Secured
Overnight
Financing
Rate
3.730
Credit
Suisse
Group
AG
Secured
Overnight
Financing
Rate
2.044
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
2.150
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
5.350
Credit
Suisse
Mortgage
Capital
Certificates
USD
1
Month
LIBOR
0.980
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
Deerfield
Dakota
Holding,
LLC
2020
Term
Loan
B
USD
1
Month
LIBOR
3.750
Dell
International
LLC
Term
Loan
B
USD
1
Month
LIBOR
2.000
Delta
Air
Lines,
Inc.
Term
Loan
B
USD
3
Month
LIBOR
4.750
Deutsche
Bank
AG
USD
Swap
Semiannual
30/360
(versus
3
Month
LIBOR)
5
Year
Rate
2.248
Dryden
50
Senior
Loan
Fund
USD
3
Month
LIBOR
1.220
Eagle
Re,
Ltd.
USD
1
Month
LIBOR
0.900
Edelman
Financial
Center
LLC
Term
Loan
B1
USD
1
Month
LIBOR
3.000
Education
Loan
Asset-Backed
Trust
I
USD
1
Month
LIBOR
0.800
Energy
Transfer
Operating,
LP
U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
5.134
Eyecare
Partners
LLC
Delayed
Draw
Term
Loan
USD
3
Month
LIBOR
3.750
Eyecare
Partners
LLC
Term
Loan
USD
3
Month
LIBOR
3.750
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
104
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
3.000
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
4.900
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
4.250
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
2.400
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
2.200
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
2.600
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
2.100
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
3.550
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
4.250
Fannie
Mae
Connecticut
Avenue
Securities
USD
1
Month
LIBOR
2.150
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.500
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.200
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.100
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.100
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.000
Fannie
Mae
REMICS
USD
1
Month
LIBOR
5.950
Fannie
Mae
REMICS
USD
1
Month
LIBOR
6.150
Federal
Home
Loan
Banks
Secured
Overnight
Financing
Rate
0.120
Fieldstone
Mortgage
Investment
Trust
USD
1
Month
LIBOR
1.950
First
Eagle
Holdings,
Inc.
Term
Loan
B
USD
3
Month
LIBOR
2.500
Flatiron
CLO,
Ltd.
USD
3
Month
LIBOR
1.250
Focus
Financial
Partners
LLC
2020
Term
Loan
USD
1
Month
LIBOR
2.000
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
4.700
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
3.450
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
5.150
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
4.650
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
3.800
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
3.250
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
2.500
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
3.750
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
4.150
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
USD
1
Month
LIBOR
2.150
Froneri
International,
Ltd.
Term
Loan
USD
1
Month
LIBOR
2.250
Garda
World
Security
Corp.
2019
1ST
Lien
Term
Loan
B
USD
3
Month
LIBOR
4.750
Genesee
&
Wyoming,
Inc.
New
Term
Loan
USD
3
Month
LIBOR
2.000
GFL
Environmental,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
3.000
Ginnie
Mae
REMICS
USD
1
Month
LIBOR
1.250
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
105
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Ginnie
Mae
REMICS
USD
1
Month
LIBOR
1.150
Ginnie
Mae
REMICS
USD
1
Month
LIBOR
6.050
Ginnie
Mae
REMICS
USD
1
Month
LIBOR
6.150
Golden
Nugget,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
2.500
Goldentree
Loan
Management
US
CLO
2,
Ltd.
USD
3
Month
LIBOR
1.150
Goldentree
Loan
Management
US
CLO
2,
Ltd.
USD
3
Month
LIBOR
1.900
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.301
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
0.768
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.430
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.201
Goldman
Sachs
Group,
Inc.
(The)
USD
3
Month
LIBOR
1.510
Greenpoint
Manufactured
Housing
Contract
Trust
USD
1
Month
LIBOR
2.000
Grifols
Worldwide
Operations
USA,
Inc.
Term
Loan
B
USD
1
Week
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
0.410
Home
Equity
Asset
Trust
USD
1
Month
LIBOR
0.280
Hospitality
Mortgage
Trust
USD
1
Month
LIBOR
2.000
HSBC
Holdings
PLC
Secured
Overnight
Financing
Rate
1.929
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.610
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.535
HSBC
Holdings
PLC
USD
3
Month
LIBOR
1.546
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
HSI
Asset
Securitization
Corp.
Trust
USD
1
Month
LIBOR
0.140
iHeartCommunications
,
Inc.
2020
Term
Loan
USD
1
Month
LIBOR
3.000
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.210
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.240
IndyMac
Index
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.220
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
USD
1
Month
LIBOR
3.000
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
1.330
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
1.260
JPMorgan
Chase
&
Co.
Secured
Overnight
Financing
Rate
2.440
JPMorgan
Chase
&
Co.
USD
3
Month
LIBOR
1.000
JPMorgan
Chase
&
Co.
Secured
Overnight
Financing
Rate
1.455
JPMorgan
Chase
&
Co.
Secured
Overnight
Financing
Rate
2.040
JPMorgan
Chase
&
Co.
Secured
Overnight
Financing
Rate
1.850
LCM
XXIII,
Ltd.
USD
3
Month
LIBOR
1.070
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
106
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
LCM
XXV,
Ltd.
USD
3
Month
LIBOR
1.210
Level
3
Financing,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
1.750
Lloyds
Banking
Group
PLC
USD
3
Month
LIBOR
1.270
Long
Beach
Mortgage
Loan
Trust
USD
1
Month
LIBOR
0.900
Long
Beach
Mortgage
Loan
Trust
USD
1
Month
LIBOR
1.500
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
Magnetite
XVIII,
Ltd.
USD
3
Month
LIBOR
1.080
McAfee
LLC
Term
Loan
B
USD
1
Month
LIBOR
3.750
Michaels
Stores,
Inc.
1st
Lien
Term
Loan
B
USD
3
Month
LIBOR
2.500
Michaels
Stores,
Inc.
1st
Lien
Term
Loan
B
USD
3
Month
LIBOR
2.500
Morgan
Stanley
Secured
Overnight
Financing
Rate
1.990
Morgan
Stanley
Secured
Overnight
Financing
Rate
3.120
Morgan
Stanley
Secured
Overnight
Financing
Rate
4.840
Morgan
Stanley
USD
3
Month
LIBOR
1.628
Morgan
Stanley
USD
3
Month
LIBOR
0.847
Morgan
Stanley
USD
3
Month
LIBOR
1.140
Morgan
Stanley
Secured
Overnight
Financing
Rate
1.143
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.950
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.950
Morgan
Stanley
Capital
I
Trust
USD
1
Month
LIBOR
1.400
Morgan
Stanley
Capital
I,
Inc.
USD
1
Month
LIBOR
2.244
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
Occidental
Petroleum
Corp.
USD
3
Month
LIBOR
0.950
Option
Care
Helath
,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
4.500
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
6
Month
LIBOR
2.500
PCI
Gaming
Authority
Term
Loan
USD
1
Month
LIBOR
2.500
Phoenix
Guarantor,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
3.250
PMT
Credit
Risk
Transfer
Trust
USD
1
Month
LIBOR
2.700
PMT
Credit
Risk
Transfer
Trust
USD
1
Month
LIBOR
2.000
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
Term
Loan
B1
USD
12
Month
LIBOR
3.250
Prudential
Financial,
Inc.
USD
3
Month
LIBOR
3.920
Radnor
RE,
Ltd.
USD
1
Month
LIBOR
0.950
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
107
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
RAMP
Trust
USD
1
Month
LIBOR
0.570
RBS
Capital
Trust
II
USD
3
Month
LIBOR
1.943
RegionalCare
Hospital
Partners
Holdings,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
3.750
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
American,
Inc.
Term
Loan
USD
1
Month
LIBOR
1.750
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
2.500
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
Intermediate
Finance
Trust
Term
Loan
B1
USD
1
Month
LIBOR
1.750
Scientific
Games
International,
Inc. 1st
Lien
Term
Loan
B5
USD
6
Month
LIBOR
2.750
Seattle
SpinCo
,
Inc.
1st
Lien
Term
Loan
B3
USD
1
Month
LIBOR
2.500
Shackleton
CLO,
Ltd.
USD
3
Month
LIBOR
1.000
SLM
Private
Credit
Student
Loan
Trust
USD
3
Month
LIBOR
0.290
SLM
Private
Credit
Student
Loan
Trust
USD
3
Month
LIBOR
0.330
SMB
Private
Education
Loan
Trust
USD
1
Month
LIBOR
1.000
Sotera
Health
Holdings
LLC
Term
Loan
USD
1
Month
LIBOR
4.500
Standard
Chartered
PLC
USD
3
Month
LIBOR
1.460
Standard
Chartered
PLC
USD
3
Month
LIBOR
1.560
Stars
Group
Holdings
BV
Term
Loan
B
USD
3
Month
LIBOR
3.500
Structured
Asset
Investment
Loan
Trust
USD
1
Month
LIBOR
0.720
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
3
Month
LIBOR
3.750
T-Mobile
US,
Inc.
2020
Term
Loan
USD
1
Month
LIBOR
3.000
Trans
Union
LLC
Term
Loan
B5
USD
1
Month
LIBOR
1.750
UBS
Group
AG
USD
3
Month
LIBOR
1.468
UBS
Group
AG
USD
3
Month
LIBOR
0.954
UBS
Group
AG
USD
Swap
Semiannual
30/360
(versus
3
Month
LIBOR)
5
Year
Rate
4.344
UFC
Holdings
LLC
Term
Loan
USD
6
Month
LIBOR
3.250
US
Foods,
Inc.
Term
Loan
B
USD
1
Month
LIBOR
1.750
US
Foods,
Inc.
Term
Loan
B
USD
3
Month
LIBOR
2.000
VFH
Parent
LLC
Term
Loan
B
USD
1
Month
LIBOR
3.000
VICI
Properties,
Inc.
1st
Lien
Term
Loan
B
USD
1
Month
LIBOR
1.750
Virgin
Media
Secured
Finance
PLC
Term
Loan
USD
1
Month
LIBOR
2.500
Vodafone
Group
PLC
USD
Swap
Semiannual
30/360
(versus
3
Month
LIBOR)
5
Year
Rate
4.873
Voya
CLO,
Ltd.
USD
3
Month
LIBOR
1.020
VVC
Holdings
Corp.
Term
Loan
B
USD
3
Month
LIBOR
4.500
Washington
Mutual
Mortgage
Pass-Through
Certificates
Trust
Federal
Reserve
U.S.
12
Month
Cumulative
Avg
1
year
CMT
1.070
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
108
Strategic
Bond
Fund
Variable
Rate
Securities
Securities
Referenced
Rate
Spread
%
Wells
Fargo
&
Co.
USD
3
Month
LIBOR
1.170
Wells
Fargo
&
Co.
USD
3
Month
LIBOR
3.770
Wells
Fargo
&
Co.
USD
3
Month
LIBOR
4.240
Wells
Fargo
&
Co.
Secured
Overnight
Financing
Rate
2.000
Wells
Fargo
&
Co.
USD
3
Month
LIBOR
1.230
Western
Digital
Corp.
1st
Lien
Term
Loan
B4
USD
3
Month
LIBOR
1.750
Western
Midstream
Operating,
LP
USD
3
Month
LIBOR
0.850
Wynn
Resorts
Finance
LLC
Term
Loan
A
USD
1
Month
LIBOR
1.750
Ziggo
Secured
Finance
BV
Term
Loan
I
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
591
AUD
87,934
09/20
293
Euro-BTP
Futures
64
EUR
9,208
09/20
226
Eurodollar
Futures
128
USD
31,907
12/20
442
Euro-OAT
Futures
18
EUR
3,018
09/20
37
Japanese
10
Year
Government
Bond
Futures
5
JPY
759,751
09/20
(1)
United
States
2
Year
Treasury
Note
Futures
192
USD
42,399
09/20
12
United
States
5
Year
Treasury
Note
Futures
797
USD
100,216
09/20
205
United
States
10
Year
Treasury
Note
Futures
970
USD
134,997
09/20
509
United
States
10
Year
Ultra
Treasury
Note
Futures
51
USD
8,032
09/20
40
United
States
Treasury
Long
Bond
Futures
233
USD
41,605
09/20
255
United
States
Treasury
Ultra
Bond
Futures
181
USD
39,486
09/20
24
Short
Positions
Australia
10
Year
Government
Bond
Futures
23
AUD
3,422
09/20
(6)
Canadian
10
Year
Government
Bond
Futures
55
CAD
8,460
09/20
(28)
Euro-
Bobl
Futures
53
EUR
7,154
09/20
(18)
Euro-Bund
Futures
384
EUR
67,785
09/20
(617)
Eurodollar
Futures
224
USD
55,887
03/21
(67)
Eurodollar
Futures
163
USD
40,669
12/21
(259)
Euro-OAT
Futures
23
EUR
3,856
09/20
(16)
Federal
Fund
30
Day
Futures
26
USD
10,835
06/21
4
Long
Gilt
Futures
66
GBP
9,084
09/20
(19)
United
States
2
Year
Treasury
Note
Futures
92
USD
20,316
09/20
(9)
United
States
5
Year
Treasury
Note
Futures
73
USD
9,179
09/20
(20)
United
States
10
Year
Treasury
Note
Futures
174
USD
24,216
09/20
(23)
United
States
10
Year
Ultra
Treasury
Note
Futures
29
USD
4,567
09/20
(21)
United
States
Treasury
Long
Bond
Futures
6
USD
1,072
09/20
(10)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
933
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
109
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
7,232
AUD
10,550
08/24/20
50
Bank
of
America
NOK
140,471
USD
14,488
08/24/20
(108)
Bank
of
New
York
USD
23,772
JPY
2,558,801
08/24/20
(58)
Bank
of
New
York
JPY
3,205,182
USD
29,835
08/24/20
130
BNP
Paribas
USD
3,643
CAD
5,083
07/16/20
101
BNP
Paribas
CNY
5,450
USD
767
07/16/20
(3)
BNP
Paribas
EUR
20
USD
22
07/16/20
(1)
BNP
Paribas
EUR
550
USD
599
07/16/20
(19)
BNP
Paribas
EUR
1,114
USD
1,218
07/16/20
(34)
Citigroup
USD
761
BRL
3,997
07/16/20
(27)
Citigroup
USD
847
GBP
682
07/16/20
(2)
Citigroup
USD
15,562
GBP
12,361
08/24/20
(240)
Citigroup
USD
372
JPY
39,894
07/16/20
(3)
Citigroup
USD
89
NZD
139
08/24/20
1
Citigroup
USD
7,170
NZD
11,140
08/24/20
18
Citigroup
GBP
2,639
USD
3,238
08/24/20
(32)
Citigroup
RUB
16,322
USD
211
07/16/20
(18)
Goldman
Sachs
USD
1,304
MXN
32,104
07/16/20
90
Goldman
Sachs
JPY
39,894
USD
367
07/16/20
(2)
JPMorgan
Chase
USD
550
AUD
790
08/24/20
(5)
JPMorgan
Chase
USD
501
BRL
2,650
07/16/20
(14)
JPMorgan
Chase
USD
311
CLP
250,593
07/06/20
(6)
JPMorgan
Chase
USD
993
CLP
755,880
07/15/20
(73)
JPMorgan
Chase
USD
2,018
CNY
14,261
07/16/20
(2)
JPMorgan
Chase
USD
3,263
COP
11,907,989
07/16/20
(98)
JPMorgan
Chase
USD
5
CZK
119
09/17/20
—
JPMorgan
Chase
USD
1,481
EUR
1,320
08/24/20
3
JPMorgan
Chase
USD
4,487
GBP
3,577
08/24/20
(53)
JPMorgan
Chase
USD
19
HUF
5,876
09/17/20
(1)
JPMorgan
Chase
USD
267
INR
20,944
07/16/20
9
JPMorgan
Chase
USD
906
JPY
96,757
08/24/20
(9)
JPMorgan
Chase
USD
1,372
KRW
1,653,766
07/22/20
7
JPMorgan
Chase
USD
816
MXN
18,061
09/17/20
(38)
JPMorgan
Chase
USD
8,221
NOK
76,277
09/17/20
(293)
JPMorgan
Chase
USD
826
PEN
2,909
07/01/20
(5)
JPMorgan
Chase
USD
830
PEN
2,909
07/01/20
(9)
JPMorgan
Chase
USD
207
PEN
713
07/03/20
(6)
JPMorgan
Chase
USD
201
PEN
713
08/03/20
—
JPMorgan
Chase
USD
2,039
PLN
8,024
09/17/20
(11)
JPMorgan
Chase
USD
1,278
RUB
87,757
07/15/20
(47)
JPMorgan
Chase
USD
6,272
SEK
57,654
09/17/20
(79)
JPMorgan
Chase
USD
3,331
THB
103,159
07/29/20
6
JPMorgan
Chase
AUD
990
USD
678
08/24/20
(5)
JPMorgan
Chase
BRL
794
USD
159
07/15/20
13
JPMorgan
Chase
BRL
306
USD
60
07/20/20
4
JPMorgan
Chase
BRL
2,525
USD
487
07/22/20
23
JPMorgan
Chase
CAD
1,162
USD
827
08/19/20
(29)
JPMorgan
Chase
CHF
5,280
USD
5,469
08/19/20
(112)
JPMorgan
Chase
CLP
250,593
USD
307
07/06/20
2
JPMorgan
Chase
CLP
363,963
USD
474
07/15/20
30
JPMorgan
Chase
CLP
391,918
USD
480
07/15/20
3
JPMorgan
Chase
CNY
8,811
USD
1,239
07/16/20
(7)
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
110
Strategic
Bond
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
JPMorgan
Chase
COP
12,374,759
USD
3,321
07/30/20
36
JPMorgan
Chase
EUR
387
USD
425
07/16/20
(10)
JPMorgan
Chase
EUR
8,414
USD
9,477
08/24/20
13
JPMorgan
Chase
HKD
644
USD
83
08/19/20
—
JPMorgan
Chase
IDR
25,035,556
USD
1,778
07/15/20
57
JPMorgan
Chase
IDR
1,762,046
USD
122
07/20/20
1
JPMorgan
Chase
IDR
1,762,046
USD
122
07/21/20
1
JPMorgan
Chase
JPY
434,608
USD
4,049
08/24/20
21
JPMorgan
Chase
MXN
17,892
USD
783
09/17/20
13
JPMorgan
Chase
MXN
18,409
USD
827
09/17/20
34
JPMorgan
Chase
NOK
8,299
USD
871
09/17/20
9
JPMorgan
Chase
NOK
12,133
USD
1,308
09/17/20
47
JPMorgan
Chase
NZD
6,748
USD
4,383
08/24/20
29
JPMorgan
Chase
PEN
2,909
USD
826
07/01/20
5
JPMorgan
Chase
PEN
2,909
USD
850
07/01/20
28
JPMorgan
Chase
PEN
713
USD
201
07/03/20
—
JPMorgan
Chase
PEN
2,389
USD
696
07/16/20
21
JPMorgan
Chase
PEN
3,463
USD
1,002
07/20/20
25
JPMorgan
Chase
PEN
7,313
USD
2,097
07/22/20
32
JPMorgan
Chase
PEN
2,909
USD
829
08/03/20
8
JPMorgan
Chase
PLN
1,261
USD
317
09/17/20
(1)
JPMorgan
Chase
PLN
1,851
USD
472
09/17/20
5
JPMorgan
Chase
SEK
3,373
USD
359
09/17/20
(4)
JPMorgan
Chase
SEK
5,136
USD
558
09/17/20
7
JPMorgan
Chase
SGD
689
USD
483
08/19/20
(11)
JPMorgan
Chase
SGD
8,494
USD
5,979
08/19/20
(115)
JPMorgan
Chase
THB
25,635
USD
828
07/20/20
(2)
JPMorgan
Chase
THB
25,635
USD
829
07/21/20
(1)
JPMorgan
Chase
THB
88,244
USD
2,846
07/22/20
(9)
JPMorgan
Chase
THB
60,259
USD
1,944
07/27/20
(6)
JPMorgan
Chase
THB
60,259
USD
1,944
07/29/20
(6)
Royal
Bank
of
Canada
USD
21,560
CAD
29,317
08/24/20
37
Royal
Bank
of
Canada
USD
17,893
EUR
15,845
08/24/20
(72)
Royal
Bank
of
Canada
CAD
9,556
USD
6,976
08/24/20
(63)
Royal
Bank
of
Canada
EUR
1,862
USD
2,096
08/24/20
2
UBS
CHF
278
USD
293
08/24/20
(1)
UBS
CHF
20,323
USD
21,409
08/24/20
(74)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(å)
(903)
Interest
Rate
Swap
Contracts
Amounts
in
thousands
Counterparty
Notional
Amount
Fund
Receives
Fund
Pays
Termination
Date
Premiums
Paid
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
Barclays
USD
907
Three
Month
LIBOR
(2)
1.810%
(3)
06/20/24
(11)
(177)
(188)
Barclays
USD
5,040
Three
Month
LIBOR
(5)
1.732%
(3)
10/02/39
—
(74)
(74)
Barclays
MXN
40,840
7.450%
(3)
Mexico
Interbank
28
Day
Deposit
Rate
(1)
10/23/49
17
238
255
Barclays
USD
24,156
Three
Month
LIBOR
(3)
1.550%
(3)
12/18/49
5
(1,589)
(1,584)
Barclays
USD
5,708
Three
Month
LIBOR
(3)
1.850%
(3)
10/11/54
12
(1,246)
(1,234)
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
111
Interest
Rate
Swap
Contracts
Amounts
in
thousands
Counterparty
Notional
Amount
Fund
Receives
Fund
Pays
Termination
Date
Premiums
Paid
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
Barclays
USD
9,140
Three
Month
LIBOR
(5)
1.520%
(3)
11/14/54
31
(696)
(665)
Citigroup
BRL
1,700
7.044%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
—
14
14
Citigroup
BRL
2,100
7.024%
(3)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
—
16
16
Citigroup
BRL
2,400
7.024%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
1
18
19
Citigroup
BRL
2,631
7.024%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
2
19
21
JPMorgan
Chase
HUF
269,360
Six
Month
BUBOR
(2)
0.930%
(4)
04/05/27
—
3
3
JPMorgan
Chase
HUF
627,060
Six
Month
BUBOR
(1)
1.848%
(4)
04/05/27
—
(120)
(120)
Merrill
Lynch
USD
11,733
0.600%
(3)
Three
Month
LIBOR
(2)
03/23/22
2
91
93
Merrill
Lynch
USD
32,807
0.380%
(3)
Three
Month
LIBOR
(2)
08/31/24
9
138
147
Merrill
Lynch
USD
2,848
0.100%
(3)
Federal
Fund
Effective
Rate
(2)
11/30/24
2
4
6
Merrill
Lynch
USD
6,830
0.700%
(3)
Three
Month
LIBOR
(2)
03/23/25
(6)
146
140
Merrill
Lynch
USD
1,276
Three
Month
LIBOR
(2)
1.650%
(3)
11/15/26
(5)
(97)
(102)
Merrill
Lynch
USD
3,573
Three
Month
LIBOR
(2)
1.600%
(3)
11/15/26
1
(274)
(273)
Merrill
Lynch
USD
7,588
Three
Month
LIBOR
(2)
0.750%
(3)
02/15/27
1
(158)
(157)
Merrill
Lynch
USD
9,310
0.770%
(3)
Three
Month
LIBOR
(2)
03/24/27
69
153
222
Merrill
Lynch
USD
6,024
Federal
Fund
Effective
Rate
(2)
0.260%
(3)
05/15/27
(20)
7
(13)
Merrill
Lynch
USD
1,009
Three
Month
LIBOR
(2)
0.900%
(3)
03/17/50
17
(14)
3
Merrill
Lynch
USD
516
Three
Month
LIBOR
(2)
1.791%
(3)
03/18/50
—
17
17
Merrill
Lynch
USD
519
Three
Month
LIBOR
(2)
1.818%
(3)
03/19/50
—
13
13
Total
Open
Interest
Rate
Swap
Contracts
(å)
127
(3,568)
(3,441)
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
High
Yield
Index
Merrill
Lynch
Sell
USD
4,513
5.000%
(2)
06/20/25
(282)
256
(26)
CDX
NA
High
Yield
Index
Goldman
Sachs
Sell
USD
85,000
1.000%
(2)
06/20/25
462
553
1,015
CDX
NA
Investment
Grade
Index
Merrill
Lynch
Sell
USD
9,690
1.000%
(2)
06/20/25
(105)
221
116
Total
Open
Credit
Indices
Contracts
(å)
75
1,030
1,105
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
112
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
$
—
$
60,197
$
—
$
—
$
60,197
6.9
Corporate
Bonds
and
Notes
—
221,123
—
—
221,123
25.4
International
Debt
—
8
8
,
106
—
—
8
8
,
106
10.1
Loan
Agreements
—
12,037
—
—
12,037
1.4
Mortgage-Backed
Securities
—
240,378
101
—
240,479
27.7
Non-US
Bonds
—
39
,
868
—
—
39
,
868
4.6
United
States
Government
Treasuries
—
80,593
—
—
80,593
9.3
Common
Stocks
—
—
—
—
—
Short-Term
Investments
—
38,41
2
—
76,27
0
114,682
13.2
Total
Investments
—
780,71
4
101
76,27
0
857,085
98.6
Other
Assets
and
Liabilities,
Net
1.4
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
2,
047
—
—
—
2,
047
0.
2
Foreign
Currency
Exchange
Contracts
—
92
1
—
—
92
1
0.1
Interest
Rate
Swap
Contracts
—
969
—
—
969
0.1
Credit
Default
Swap
Contracts
—
1,131
—
—
1,131
0.1
A
Liabilities
Futures
Contracts
(1,
114
)
—
—
—
(1,
114
)
(
0.1
)
Foreign
Currency
Exchange
Contracts
—
(1,82
4
)
—
—
(1,82
4
)
(0.
2
)
Interest
Rate
Swap
Contracts
—
(4,410)
—
—
(4,410)
(0.
5
)
Credit
Default
Swap
Contracts
—
(26)
—
—
(26)
(
—
)
*
Total
Other
Financial
Instruments
**
$
933
$
(3,23
9
)
$
—
$
—
$
(2,
306
)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
a
fair
value
for
the
period
ended
June
30,
2020,
were
less
than
1%
of
net
assets.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
113
Amounts
in
thousands
Country
Exposure
Fair
Value
$
Argentina
................................................................................
527
Australia
.................................................................................
539
Brazil
......................................................................................
4,179
Canada
....................................................................................
12,027
Cayman
Islands
.......................................................................
206
Chile
.......................................................................................
1,667
China
......................................................................................
1,233
Colombia
.................................................................................
5,327
Denmark
.................................................................................
2,616
Finland
...................................................................................
274
France
.....................................................................................
8,599
Germany
.................................................................................
1,001
India
.......................................................................................
805
Indonesia
................................................................................
4,248
Ireland
....................................................................................
3,741
Israel
.......................................................................................
279
Italy
........................................................................................
7,962
Japan
......................................................................................
2,634
Kazakhstan
.............................................................................
226
Kuwait
....................................................................................
234
Liberia
....................................................................................
201
Luxembourg
............................................................................
169
Macao
.....................................................................................
433
Malaysia
..................................................................................
2,805
Mexico
....................................................................................
13,012
Netherlands
............................................................................
13,534
Norway
....................................................................................
1,385
Panama
...................................................................................
728
Peru
........................................................................................
2,884
Poland
.....................................................................................
571
Qatar
.......................................................................................
984
Russia
.....................................................................................
4,571
Saudi
Arabia
...........................................................................
798
Singapore
................................................................................
6,618
South
Korea
............................................................................
801
Spain
.......................................................................................
3,293
Sweden
....................................................................................
692
Switzerland
.............................................................................
2,462
Thailand
..................................................................................
230
United
Arab
Emirates
.............................................................
1,767
United
Kingdom
......................................................................
14,993
United
States
...........................................................................
725,830
Total
Investments
....................................................................
857,085
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
114
Strategic
Bond
Fund
Russell
Investment
Funds
Strategic
Bond
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
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
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
921
$
—
Variation
margin
on
futures
contracts*
—
—
2,047
Interest
rate
swap
contracts,
at
fair
value
—
—
969
Credit
default
swap
contracts,
at
fair
value
1,131
—
—
Total
$
1,131
$
921
$
3,016
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
—
$
—
$
1,114
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
1,824
—
Interest
rate
swap
contracts,
at
fair
value
—
—
4,410
Credit
default
swap
contracts,
at
fair
value
26
—
—
Total
$
26
$
1,824
$
5,524
Derivatives
not
accounted
for
as
hedging
instruments
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Investments**
$
—
$
—
$
(186)
Futures
contracts
—
—
27,017
Options
written
—
—
786
Interest
rate
swap
contracts
—
—
(2,168)
Credit
default
swap
contracts
(2,533)
—
—
Foreign
currency
exchange
contracts
—
(1,958)
—
Total
$
(2,533)
$
(1,958)
$
25,449
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments***
$
—
$
—
$
4
Futures
contracts
—
—
3,762
Options
written
—
—
(19)
Interest
rate
swap
contracts
—
—
(4,836)
Credit
default
swap
contracts
499
—
—
Foreign
currency
exchange
contracts
—
(597)
—
Total
$
499
$
(597)
$
(1,089)
*
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
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
115
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
$
921
$
—
$
921
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
969
—
969
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
1,131
—
1,131
Total
Financial
and
Derivative
Assets
3,021
—
3,021
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(2,030)
—
(2,030)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
991
$
—
$
991
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
$
50
$
50
$
—
$
—
Bank
of
New
York
131
58
—
73
BNP
Paribas
10
0
57
—
4
3
Citigroup
75
68
—
7
Goldman
Sachs
90
2
—
88
JPMorgan
Chase
506
506
—
—
Royal
Bank
of
Canada
39
39
—
—
Total
$
99
1
$
780
$
—
$
21
1
Russell
Investment
Funds
Strategic
Bond
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
116
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
$
1,824
$
—
$
1,824
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
4,410
—
4,410
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
26
—
26
Total
Financial
and
Derivative
Liabilities
6,260
—
6,260
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(4,436)
—
(4,436)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
1,824
$
—
$
1,824
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
$
10
8
$
50
$
58
$
—
Bank
of
New
York
58
58
—
—
BNP
Paribas
57
57
—
—
Citigroup
322
68
—
254
Goldman
Sachs
2
2
—
—
JPMorgan
Chase
1,067
506
560
1
Royal
Bank
of
Canada
135
39
—
96
UBS
75
—
—
75
Total
$
1,82
4
$
780
$
618
$
42
6
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
117
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
83
8
,
968
Investments,
at
fair
value(>)
...........................................................................................................................................................
857,085
Cash
...............................................................................................................................................................................................
4,436
Foreign
currency
holdings(^)
.........................................................................................................................................................
2,629
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
921
Receivables:
Dividends
and
interest
.......................................................................................................................................................
4,677
Dividends
from
affiliated
funds
..........................................................................................................................................
18
Investments
sold
................................................................................................................................................................
4,567
Fund
shares
sold
................................................................................................................................................................
231
From
broker(a)(b)(c)
...........................................................................................................................................................
15,901
Variation
margin
on
futures
contracts
.................................................................................................................................
1,009
Prepaid
expenses
...........................................................................................................................................................................
4
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
969
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
1,131
Total
assets
.................................................................................................................................................
893,578
Liabilities
Payables:
Due
to
broker
(d)
................................................................................................................................................................
100
Investments
purchased
......................................................................................................................................................
16,927
Fund
shares
redeemed
.......................................................................................................................................................
9
Accrued
fees
to
affiliates
....................................................................................................................................................
430
Other
accrued
expenses
.....................................................................................................................................................
160
Variation
margin
on
futures
contracts
.................................................................................................................................
66
Deferred
capital
gains
tax
liability
.....................................................................................................................................
2
Unfunded
loan
commitment
...............................................................................................................................................
19
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
1,824
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
4,410
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
26
Total
liabilities
.............................................................................................................................................
23,973
Net
Assets
............................................................................................................................................................
$
869,605
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
118
Strategic
Bond
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
43,229
Shares
of
beneficial
interest
...........................................................................................................................................................
791
Additional
paid-in
capital
..............................................................................................................................................................
825,585
Net
Assets
............................................................................................................................................................
$
869,605
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
11.00
Net
assets
...............................................................................................................................................................................
$
869,605,128
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
79,081,726
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
2,619
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
75
(•)
Interest
rate
swap
contracts
-
premiums
paid
(received)
$
127
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
$
76,270
(a)
Receivable
from
Broker
for
Futures
$
8,707
(b)
Receivable
from
Broker
for
Swaps
$
6,364
(c)
Receivable
from
Broker
for
Forwards
$
830
(d)
Due
to
Broker
for
Swaps
$
100
(#)
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
119
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
13
Dividends
from
affiliated
funds
.........................................................................................................................................
194
Interest
..............................................................................................................................................................................
11,
844
Total
investment
income
...............................................................................................................................................................
12,
05
1
Expenses
Advisory
fees
....................................................................................................................................................................
2,445
Administrative
fees
...........................................................................................................................................................
222
Custodian
fees
...................................................................................................................................................................
167
Transfer
agent
fees
...........................................................................................................................................................
20
Professional
fees
...............................................................................................................................................................
79
Trustees’
fees
....................................................................................................................................................................
19
Printing
fees
......................................................................................................................................................................
63
Miscellaneous
...................................................................................................................................................................
13
Total
expenses
...............................................................................................................................................................................
3,028
Net
investment
income
(loss)
........................................................................................................................................................
9,
023
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
12,4
9
5
Futures
contracts
..............................................................................................................................................................
27,017
Options
written
.................................................................................................................................................................
786
Foreign
currency
exchange
contracts
................................................................................................................................
(1,958)
Interest
rate
swap
contracts
...............................................................................................................................................
(2,168)
Credit
default
swap
contracts
............................................................................................................................................
(2,533)
Foreign
currency-related
transactions
...............................................................................................................................
322
Net
realized
gain
(loss)
..................................................................................................................................................................
33,9
6
1
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
69
Investments
in
affiliated
funds
..........................................................................................................................................
(3)
Futures
contracts
..............................................................................................................................................................
3,762
Options
written
.................................................................................................................................................................
(19)
Foreign
currency
exchange
contracts
................................................................................................................................
(597)
Interest
rate
swap
contracts
...............................................................................................................................................
(4,836)
Credit
default
swap
contracts
............................................................................................................................................
499
Foreign
currency-related
transactions
...............................................................................................................................
(8
0
)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(1,2
05
)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
32,7
5
6
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
41,779
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
120
Strategic
Bond
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
9,
023
$
22,858
Net
realized
gain
(loss)
......................................................................................................................
33,9
6
1
35,561
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(1,2
05
)
20,909
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
41,779
79,328
Distributions
To
shareholders
.................................................................................................................................
(7,529)
(36,716)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(7,529)
(36,716)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(82,415)
(3,503)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(48,165)
39,109
Net
Assets
Beginning
of
period
.................................................................................................................................
917,770
878,661
End
of
period
..........................................................................................................................................
$
869,605
$
917,770
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
1,620
$
17,374
2,937
$
30,89
5
Proceeds
from
reinvestment
of
distributions
718
7,529
3,485
36,716
Payments
for
shares
redeemed
(10,197)
(107,318)
(6,759)
(71,114)
Total
increase
(decrease)
(7,859)
$
(82,415)
(337)
$
(3,503)
Russell
Investment
Funds
Strategic
Bond
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
122
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2020(1)
10.56
.11
.42
.53
(.09)
—
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
123
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.09)
11.00
5.05
869,605
.68
.68
2.05
61
(.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.
124
Strategic
Bond
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020
,
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
$
390,448
Administration
fees
35,495
Transfer
agent
fees
3,124
Trustee
fees
530
$
429,597
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
$
16,804
$
442,528
$
383,059
$
—
$
(3
)
$
76,270
$
194
$
—
$
16,804
$
442,528
$
383,059
$
—
$
(3
)
$
76,270
$
194
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
844,342,524
$
23,025,418
$
(12,676,191)
$
10,349,227
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
Global
Real
Estate
Securities
Fund
125
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2020
$
811
.20
$
1,020
.29
Expenses
Paid
During
Period*
$
4
.14
$
4
.62
*
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
182/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
126
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
92.0%
Australia
-
3.3%
BGP
Holdings
PLC(Æ)(Š)
926,311
—
Charter
Hall
Group
-
ADR(ö)
602,868
4,101
Goodman
Group(ö)
344,035
3,541
GPT
Group
(The)(ö)
1,588,848
4,593
Growthpoint
Properties
Australia,
Ltd.(ö)
489,729
1,085
Mirvac
Group(ö)
4,970,807
7,482
Scentre
Group(ö)
1,057,735
1,593
Shopping
Centres
Australasia
Property
Group(ö)
1,019,294
1,538
Stockland(ö)
773,887
1,778
Waypoint
REIT,
Ltd.(Æ)(ö)
530,556
954
26,665
Austria
-
0.0%
CA
Immobilien
Anlagen
AG
5,352
178
Belgium
-
1.0%
Aedifica
(ö)
34,404
3,756
VGP
NV
9,571
1,221
Warehouses
De
Pauw
CVA(ö)
104,820
2,858
7,835
Canada
-
2.3%
Allied
Properties
Real
Estate
Investment
Trust(ö)
104,799
3,162
Boardwalk
Real
Estate
Investment
Trust(ö)
99,957
2,187
Canadian
Apartment
Properties(ö)
120,984
4,330
Granite
Real
Estate
Investment
Trust(ö)
78,847
4,069
InterRent
Real
Estate
Investment
Trust(Ñ)(ö)
213,534
2,254
RioCan
Real
Estate
Investment
Trust(ö)
212,109
2,400
18,402
China
-
0.3%
China
Overseas
Land
&
Investment,
Ltd.
434,000
1,310
China
Resources
Land,
Ltd.
340,000
1,285
2,595
France
-
1.6%
ARGAN
SA(ö)
23,422
2,140
Covivio
(ö)
26,496
1,918
Gecina
SA(ö)
44,366
5,476
Klepierre
SA
-
GDR(Ñ)(ö)
180,942
3,600
13,134
Germany
-
5.4%
Alstria
Office
REIT-AG(ö)
210,618
3,137
Aroundtown
SA(Æ)
84,195
482
Deutsche
Wohnen
SE
286,643
12,859
Instone
Real
Estate
Group
AG(Æ)(Þ)
81,133
1,758
LEG
Immobilien
AG
27,749
3,520
Vonovia
SE
353,905
21,680
43,436
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Hong
Kong
-
5.8%
ESR
Cayman,
Ltd.(Æ)(Þ)
1,666,800
3,954
Hang
Lung
Properties,
Ltd.
-
ADR
2,005,000
4,753
Link
Real
Estate
Investment
Trust(ö)
1,182,000
9,645
New
World
Development
Co.,
Ltd.
2,816,750
13,388
Sino
Land
Co.,
Ltd.
354,000
446
Sun
Hung
Kai
Properties,
Ltd.
775,500
9,883
Swire
Properties,
Ltd.
1,514,000
3,845
45,914
India
-
0.1%
Ascendas
India
Trust
431,600
419
Japan
-
10.8%
Activia
Properties,
Inc.(ö)
2,103
7,325
Advance
Residence
Investment
Corp.(ö)
113
337
Daibiru
Corp.
215,300
1,967
Daiwa
House
REIT
Investment
Corp.(ö)
1,440
3,391
Daiwa
Securities
Living
Investments
Corp.(ö)
3,603
3,354
Frontier
Real
Estate
Investment
Corp.(ö)
136
430
Global
One
Real
Estate
Investment
Corp.(ö)
3,820
3,538
GLP
J-REIT(Æ)(ö)
2,769
4,021
Hulic
REIT,
Inc.(ö)
3,225
4,010
Japan
Prime
Realty
Investment
Corp.(ö)
944
2,782
Kenedix
Retail
REIT
Corp.(ö)
1,419
2,671
Mitsubishi
Estate
Co.,
Ltd.
909,400
13,522
Mitsui
Fudosan
Co.,
Ltd.
643,700
11,406
MORI
Trust
Hotel
REIT,
Inc.(ö)
2,065
1,885
MORI
Trust
Sogo
REIT,
Inc.(ö)
1,950
2,402
Nippon
Building
Fund,
Inc.(ö)
731
4,161
Nippon
REIT
Investment
Corp.(ö)
960
3,125
Nomura
Real
Estate
Master
Fund,
Inc.(ö)
3,705
4,450
Orix
JREIT,
Inc.(ö)
233
306
Premier
Investment
Corp.(ö)
123
137
Sumitomo
Realty
&
Development
Co.,
Ltd.
214,300
5,893
Tokyu
Fudosan
Holdings
Corp.
300,900
1,408
United
Urban
Investment
Corp.(ö)
2,437
2,620
XYMAX
REIT
Investment
Corp.(ö)
1,490
1,261
86,402
Netherlands
-
0.7%
Unibail
-
Rodamco
-Westfield(Ñ)(ö)
92,460
5,201
Norway
-
0.2%
Entra
ASA(Þ)
116,067
1,483
Singapore
-
3.2%
CapitaLand
Mall
Trust
Class
A(Æ)(ö)
2,141,700
3,020
CapitaLand,
Ltd.
1,952,100
4,100
City
Developments,
Ltd.
491,800
2,980
Keppel
DC
REIT(ö)
1,845,700
3,367
Mapletree
Industrial
Trust(Æ)(ö)
3,686,300
7,661
Mapletree
Logistics
Trust(ö)
910,000
1,270
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
127
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Parkway
Life
Real
Estate
Investment
Trust(Æ)(ö)
1,139,000
2,742
25,140
Spain
-
0.4%
Arima
Real
Estate
Socimi
SA(Æ)(ö)
126,492
1,250
Inmobiliaria
Colonial
Socimi
SA(ö)
256,792
2,259
3,509
Sweden
-
1.9%
Castellum
AB
285,467
5,327
Catena
AB
45,436
1,788
Fabege
AB
291,480
3,402
Fastighets
AB
Balder
Class
B(Æ)
116,345
4,427
14,944
Switzerland
-
0.0%
PSP
Swiss
Property
AG
2,688
302
United
Kingdom
-
4.5%
Assura
PLC(ö)
2,254,695
2,193
Big
Yellow
Group
PLC(ö)
148,624
1,848
British
Land
Co.
PLC
(The)(ö)
519,453
2,484
Derwent
London
PLC(ö)
73,912
2,540
Grainger
PLC
1,102,954
3,905
Great
Portland
Estates
PLC(ö)
26,196
205
LondonMetric
Property
PLC(ö)
777,546
2,028
PRS
REIT
PLC
(The)(ö)
1,249,155
1,151
Safestore
Holdings
PLC(ö)
180,330
1,621
Segro
PLC(ö)
928,195
10,281
Tritax
EuroBox
PLC(Þ)
953,426
1,205
UNITE
Group
PLC
(The)(ö)
453,249
5,275
Urban
&
Civic
PLC
446,990
1,290
36,026
United
States
-
50.5%
Agree
Realty
Corp.(Ñ)(ö)
157,564
10,354
Alexandria
Real
Estate
Equities,
Inc.(ö)
73,894
11,989
American
Homes
4
Rent
Class
A(ö)
168,997
4,546
American
Tower
Corp.(ö)
26,959
6,970
Americold
Realty
Trust(ö)
83,501
3,031
Apple
Hospitality
REIT,
Inc.(ö)
367,466
3,550
Boston
Properties,
Inc.(ö)
27,942
2,525
Boyd
Gaming
Corp.
90,198
1,885
Cousins
Properties,
Inc.(ö)
211,242
6,301
CyrusOne
,
Inc.(ö)
75,157
5,468
Digital
Realty
Trust,
Inc.(Ñ)(ö)
59,223
8,416
Duke
Realty
Corp.(ö)
141,499
5,008
EastGroup
Properties,
Inc.(ö)
55,527
6,586
Empire
State
Realty
Trust,
Inc.
Class
A(ö)
29,553
207
Equinix
,
Inc.(Æ)(ö)
21,473
15,080
Equity
LifeStyle
Properties,
Inc.
Class
A(ö)
122,328
7,643
Equity
Residential(ö)
23,911
1,406
Essential
Properties
Realty
Trust,
Inc.(ö)
311,111
4,617
Essex
Property
Trust,
Inc.(ö)
74,387
17,047
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Extra
Space
Storage,
Inc.(ö)
118,669
10,961
Gaming
and
Leisure
Properties,
Inc.(ö)
153,461
5,310
Healthcare
Trust
of
America,
Inc.
Class
A(ö)
195,744
5,191
Healthpeak
Properties,
Inc.(ö)
201,065
5,541
Highwoods
Properties,
Inc.(ö)
172,510
6,440
Hilton
Worldwide
Holdings,
Inc.
39,194
2,879
Hyatt
Hotels
Corp.
Class
A(Ñ)
52,007
2,615
Invitation
Homes,
Inc.(ö)
619,845
17,064
Kilroy
Realty
Corp.(ö)
75,766
4,447
Kimco
Realty
Corp.(ö)
1,006,197
12,920
Life
Storage,
Inc.(Æ)(ö)
54,791
5,202
Medical
Properties
Trust,
Inc.(ö)
445,870
8,382
Mid-America
Apartment
Communities,
Inc.(ö)
95,440
10,944
Omega
Healthcare
Investors,
Inc.(ö)
290,908
8,649
Pebblebrook
Hotel
Trust(ö)
67,539
923
Prologis,
Inc.(ö)
497,586
46,441
Public
Storage(ö)
85,912
16,486
Realty
Income
Corp.(ö)
164,043
9,761
Regency
Centers
Corp.(ö)
149,160
6,845
Rexford
Industrial
Realty,
Inc.(ö)
139,307
5,771
Sabra
Health
Care
REIT,
Inc.(ö)
185,748
2,680
SBA
Communications
Corp.(ö)
13,375
3,985
Simon
Property
Group,
LP(ö)
252,321
17,255
Sun
Communities,
Inc.(ö)
51,562
6,996
UDR,
Inc.(ö)
353,453
13,212
Ventas,
Inc.(ö)
294,955
10,801
VICI
Properties,
Inc.(ö)
374,796
7,567
Welltower
,
Inc.(ö)
482,554
24,974
402,871
Total
Common
Stocks
(cost
$687,719)
734,456
Short-Term
Investments
-
6.6%
United
States
-
6.6%
U.S.
Cash
Management
Fund(@)
52,506,132
(∞)
52,501
Total
Short-Term
Investments
(cost
$52,503)
52,501
Other
Securities
-
2.5%
U.S.
Cash
Collateral
Fund(@)(x)
19,664,155
(∞)
19,664
Total
Other
Securities
(cost
$19,664)
19,664
Total
Investments
-
101.1%
(identified
cost
$759,886)
806,621
Other
Assets
and
Liabilities,
Net
-
(1.1%)
(8,925)
Net
Assets
-
100.0%
797,696
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
128
Global
Real
Estate
Securities
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
1.1%
Entra
ASA
08/04/15
NOK
116,067
9.60
1,115
1,483
ESR
Cayman,
Ltd.
11/12/19
HKD
1,666,800
2.22
3,694
3,954
Instone
Real
Estate
Group
AG
03/28/19
EUR
81,133
22.93
1,860
1,758
Tritax
EuroBox
PLC
07/04/18
GBP
953,426
1.16
1,109
1,205
8,400
For
a
description
of
restricted
securities
see
note
7
in
the
Notes
to
Financial
Statements.
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Dow
Jones
U.S.
Real
Estate
Index
Futures
998
USD
30,918
09/20
(538)
FTSE/EPRA
Europe
Index
Futures
441
EUR
8,375
09/20
(523)
Hang
Seng
Index
Futures
22
HKD
26,672
07/20
(35)
MSCI
Singapore
Index
Futures
83
SGD
2,456
07/20
(11)
S&P/TSX
60
Index
Futures
11
CAD
2,043
09/20
21
SPI
200
Index
Futures
18
AUD
2,651
09/20
4
TOPIX
Index
Futures
43
JPY
670,154
09/20
(256)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(1,338)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
EUR
715
USD
801
09/16/20
(3)
Bank
of
America
HKD
2,161
USD
279
09/16/20
—
Bank
of
America
JPY
109,058
USD
1,022
09/16/20
10
Bank
of
New
York
USD
407
AUD
581
09/16/20
(6)
Bank
of
New
York
USD
341
CAD
457
09/16/20
(5)
Bank
of
New
York
USD
2,627
EUR
2,309
09/16/20
(29)
Bank
of
New
York
USD
933
HKD
7,234
09/16/20
—
Bank
of
New
York
USD
1,638
JPY
175,340
09/16/20
(12)
Bank
of
New
York
USD
474
SGD
655
09/16/20
(3)
Citigroup
USD
407
AUD
581
09/16/20
(6)
Citigroup
USD
340
CAD
457
09/16/20
(4)
Citigroup
USD
2,631
EUR
2,309
09/16/20
(31)
Citigroup
USD
933
HKD
7,234
09/16/20
—
Citigroup
USD
1,638
JPY
175,340
09/16/20
(12)
Citigroup
USD
474
SGD
655
09/16/20
(3)
JPMorgan
Chase
USD
407
AUD
581
09/16/20
(6)
JPMorgan
Chase
USD
341
CAD
457
09/16/20
(4)
JPMorgan
Chase
USD
2,630
EUR
2,309
09/16/20
(32)
JPMorgan
Chase
USD
933
HKD
7,234
09/16/20
—
JPMorgan
Chase
USD
1,637
JPY
175,340
09/16/20
(11)
JPMorgan
Chase
USD
473
SGD
655
09/16/20
(3)
Royal
Bank
of
Canada
USD
870
AUD
1,269
07/01/20
6
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
129
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Royal
Bank
of
Canada
USD
407
AUD
581
09/16/20
(6)
Royal
Bank
of
Canada
USD
341
CAD
457
09/16/20
(5)
Royal
Bank
of
Canada
USD
2,633
EUR
2,309
09/16/20
(35)
Royal
Bank
of
Canada
USD
1,375
HKD
10,657
07/02/20
—
Royal
Bank
of
Canada
USD
933
HKD
7,234
09/16/20
—
Royal
Bank
of
Canada
USD
365
JPY
39,208
07/01/20
(2)
Royal
Bank
of
Canada
USD
246
JPY
26,289
09/16/20
(2)
Royal
Bank
of
Canada
USD
1,637
JPY
175,340
09/16/20
(11)
Royal
Bank
of
Canada
USD
474
SGD
655
09/16/20
(3)
Royal
Bank
of
Canada
AUD
315
USD
217
09/16/20
—
Royal
Bank
of
Canada
EUR
844
USD
947
07/01/20
(1)
Royal
Bank
of
Canada
EUR
223
USD
250
09/16/20
—
Royal
Bank
of
Canada
EUR
235
USD
266
09/16/20
2
Royal
Bank
of
Canada
EUR
448
USD
509
09/16/20
4
Royal
Bank
of
Canada
HKD
5,723
USD
738
07/06/20
—
Royal
Bank
of
Canada
JPY
16,329
USD
152
09/16/20
1
Royal
Bank
of
Canada
SGD
536
USD
384
07/01/20
—
Standard
Chartered
USD
433
AUD
629
09/16/20
1
Standard
Chartered
USD
147
CAD
198
09/16/20
—
Standard
Chartered
USD
817
EUR
726
09/16/20
(1)
Standard
Chartered
USD
735
JPY
78,550
09/16/20
(7)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(219)
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
$
—
$
26,665
$
—
$
—
$
26,665
3
.3
Austria
—
178
—
—
178
—
*
Belgium
—
7,835
—
—
7,835
1
.0
Canada
18,402
—
—
—
18,402
2
.3
China
—
2,595
—
—
2,595
0
.3
France
—
13,134
—
—
13,134
1
.6
Germany
—
43,436
—
—
43,436
5
.4
Hong
Kong
—
45,914
—
—
45,914
5
.8
India
—
419
—
—
419
0
.1
Japan
—
86,402
—
—
86,402
10
.8
Netherlands
—
5,201
—
—
5,201
0
.7
Norway
—
1,483
—
—
1,483
0
.2
Singapore
—
25,140
—
—
25,140
3
.2
Spain
—
3,509
—
—
3,509
0
.4
Sweden
—
14,944
—
—
14,944
1
.9
Switzerland
—
302
—
—
302
—
*
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
130
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
United
Kingdom
—
36,026
—
—
36,026
4
.5
United
States
402,871
—
—
—
402,871
50
.5
Short-Term
Investments
—
—
—
52,501
52,501
6
.6
Other
Securities
—
—
—
19,664
19,664
2
.5
Total
Investments
421,273
313,183
—
72,165
806,621
101
.1
Other
Assets
and
Liabilities,
Net
(1
.1)
100
.0
Other
Financial
Instruments
Assets
Futures
Contracts
25
—
—
—
25
—
*
Foreign
Currency
Exchange
Contracts
6
18
—
—
24
—
*
A
Liabilities
Futures
Contracts
(1,363
)
—
—
—
(1,363
)
(0
.2)
Foreign
Currency
Exchange
Contracts
(2
)
(241
)
—
—
(243
)
(—)
*
Total
Other
Financial
Instruments
**
$
(1,334
)
$
(223
)
$
—
$
—
$
(1,557
)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
a
fair
value
for
the
period
ended
June
30,
2020,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Property
Sector
Exposure
Fair
Value
$
Diversified
..............................................................................
230,027
Healthcare
..............................................................................
71,152
Industrial
................................................................................
104,821
Lodging/Resorts
......................................................................
11,852
Office
......................................................................................
59,331
Office
Mixed
...........................................................................
1,504
Residential
..............................................................................
142,182
Retail
......................................................................................
77,469
Self
Storage
.............................................................................
36,118
Short-Term
Investments
..........................................................
52,501
Other
Securities
......................................................................
19,664
Total
Investments
....................................................................
806,621
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
131
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
$
—
$
24
Variation
margin
on
futures
contracts*
25
—
Total
$
25
$
24
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
1,363
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
243
Total
$
1,363
$
243
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
4,312
$
—
Foreign
currency
exchange
contracts
—
386
Total
$
4,312
$
386
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(2,015)
$
—
Foreign
currency
exchange
contracts
—
(343)
Total
$
(2,015)
$
(343)
*
Includes
cumulative
appreciation/depreciation
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
132
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
19,170
$
—
$
19,170
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
24
—
24
Total
Financial
and
Derivative
Assets
19,194
—
19,194
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(5)
—
(5)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
19,189
$
—
$
19,189
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
$
9
$
3
$
—
$
6
Barclays
412
—
412
—
Citigroup
7,945
—
7,944
1
Credit
Suisse
6,204
—
6,204
—
Fidelity
619
—
619
—
JPMorgan
Chase
104
—
103
1
Merrill
Lynch
2,913
—
2,913
—
Morgan
Stanley
975
—
975
—
Royal
Bank
of
Canada
7
7
—
—
Standard
Chartered
1
1
—
—
Total
$
19,189
$
11
$
19,170
$
8
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
133
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
$
243
$
—
$
243
Total
Financial
and
Derivative
Liabilities
243
—
243
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(2)
—
(2)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
241
$
—
$
241
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
America
$
3
$
3
$
—
$
—
Bank
of
New
York
54
—
—
54
Citigroup
57
—
—
57
JPMorgan
Chase
56
—
—
56
Royal
Bank
of
Canada
63
7
—
56
Standard
Chartered
8
1
—
7
Total
$
241
$
11
$
—
$
230
*
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.
134
Global
Real
Estate
Securities
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
759,886
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
806,621
Foreign
currency
holdings(^)
.........................................................................................................................................................
3,573
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
24
Receivables:
Dividends
and
interest
.......................................................................................................................................................
2,540
Dividends
from
affiliated
funds
..........................................................................................................................................
11
Investments
sold
................................................................................................................................................................
6,000
Fund
shares
sold
................................................................................................................................................................
49
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
183
From
broker(a)
...................................................................................................................................................................
7,356
Prepaid
expenses
...........................................................................................................................................................................
4
Total
assets
.................................................................................................................................................
826,361
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
6,544
Fund
shares
redeemed
.......................................................................................................................................................
141
Accrued
fees
to
affiliates
....................................................................................................................................................
574
Other
accrued
expenses
.....................................................................................................................................................
166
Variation
margin
on
futures
contracts
.................................................................................................................................
1,333
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
243
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
19,664
Total
liabilities
.............................................................................................................................................
28,665
Net
Assets
............................................................................................................................................................
$
797,696
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
135
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
(56,571)
Shares
of
beneficial
interest
...........................................................................................................................................................
641
Additional
paid-in
capital
..............................................................................................................................................................
853,626
Net
Assets
............................................................................................................................................................
$
797,696
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
12.44
Net
assets
...............................................................................................................................................................................
$
797,696,126
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
64,141,231
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
3,589
(*)
Securities
on
loan
included
in
investments
$
19,170
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
72,165
(a)
Receivable
from
Broker
for
Futures
$
7,356
(#)
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.
136
Global
Real
Estate
Securities
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
11,067
Dividends
from
affiliated
funds
.........................................................................................................................................
188
Securities
lending
income
(net)
.........................................................................................................................................
72
Less
foreign
taxes
withheld
...............................................................................................................................................
(402)
Total
investment
income
...............................................................................................................................................................
10,925
Expenses
Advisory
fees
....................................................................................................................................................................
3,304
Administrative
fees
...........................................................................................................................................................
207
Custodian
fees
...................................................................................................................................................................
113
Transfer
agent
fees
............................................................................................................................................................
18
Professional
fees
...............................................................................................................................................................
66
Trustees’
fees
....................................................................................................................................................................
20
Printing
fees
......................................................................................................................................................................
66
Miscellaneous
...................................................................................................................................................................
15
Total
expenses
...............................................................................................................................................................................
3,809
Net
investment
income
(loss)
........................................................................................................................................................
7,116
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
(66,866)
Futures
contracts
..............................................................................................................................................................
4,312
Foreign
currency
exchange
contracts
................................................................................................................................
386
Foreign
currency-related
transactions
...............................................................................................................................
71
Net
realized
gain
(loss)
..................................................................................................................................................................
(62,097)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
(119,
071
)
Futures
contracts
..............................................................................................................................................................
(2,015)
Foreign
currency
exchange
contracts
................................................................................................................................
(343)
Foreign
currency-related
transactions
...............................................................................................................................
(
57
)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(121,486)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(183,583)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(176,467)
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
137
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
7,116
$
15,
772
Net
realized
gain
(loss)
......................................................................................................................
(62,097)
15,745
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(121,486)
143,607
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(176,467)
175,
124
Distributions
To
shareholders
.................................................................................................................................
(2,794)
(46,690)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(2,794)
(46,690)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
25,670
379
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(153,591)
128,813
Net
Assets
Beginning
of
period
.................................................................................................................................
951,287
822,474
End
of
period
..........................................................................................................................................
$
797,696
$
951,287
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
3,228
$
38,032
1,024
$
15,
653
Proceeds
from
reinvestment
of
distributions
260
2,795
3,076
46,690
Payments
for
shares
redeemed
(1,124)
(15,157)
(4,086)
(61,964)
Total
increase
(decrease)
2,364
$
25,670
14
$
379
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
138
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
June
30,
2020(1)
15.40
.11
(3.03)
(2.92)
(.04)
—
—
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
139
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.04)
12.44
(18.88)
797,696
.92
.92
1.72
59
(.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.
140
Global
Real
Estate
Securities
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020,
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
$
535,975
Administration
fees
33,499
Transfer
agent
fees
2,948
Trustee
fees
1,907
$
574,329
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
$
37,832
$
184,388
$
169,719
$
—
$
—
$
52,501
$
188
$
—
U.S.
Cash
Collateral
Fund
29,944
134,452
144,732
—
—
19,664
165
—
$
67,776
$
318,840
$
314,451
$
—
$
—
$
72,165
$
353
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
818,439,566
$
10,876,200
$
(24,251,435)
$
(13,375,235)
Russell
Investment
Funds
Notes
to
Schedules
of
Investments
—
June
30,
2020
(Unaudited)
Notes
to
Schedules
of
Investments
141
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
.
(
ƕ
)
Unfunded
loan
agreement
.
(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
Russell
Investment
Funds
Notes
to
Schedules
of
Investments,
continued
—
June
30,
2020
(Unaudited)
142
Notes
to
Schedules
of
Investments
Foreign
Currency
Abbreviations:
HIBOR
–
Hong
Kong
Interbank
Offer
Rate
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
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Highlights
143
(1)
For
the
period
ended
June
30,
2020
(Unaudited).
(a)
Average
daily
shares
outstanding
were
used
for
this
calculation.
(b)
May
reflect
amounts
waived
and/or
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(c)
Less
than
$.01
per
share.
(d)
Periods
less
than
one
year
are
not
annualized.
(e)
Periods
less
than
one
year
are
annualized.
(f)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
(g)
Gross
and
Net
Expense
Ratios
for
the
period
ended
December
31,
2016
include
a
reimbursement
from
State
Street
for
the
overbilling
of
custody
expenses
in
prior
years.
Without
the
reimbursement,
the
expense
ratios
would
have
been
higher
by
the
amount
listed
below.
Fund
Impact
of
the
fee
reimbursement
on
gross
and
net
expense
ratios
U.S.
Strategic
Equity
Fund
0.01%
U.S.
Small
Cap
Equity
Fund
0.01%
International
Developed
Markets
Fund
0.05%
Russell
Investment
Funds
Notes
to
Financial
Statements
—
June
30,
2020
(Unaudited)
144
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
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.
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
145
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
level
in
the
fair
value
hierarchy
within
which
the
fair
value
measurement
falls
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety.
The
valuation
techniques
and
significant
inputs
used
in
determining
the
fair
market
values
of
financial
instruments
categorized
as
Level
1
and
Level
2
of
the
fair
value
hierarchy
are
as
follows:
Equity
securities,
including
common
and
preferred
stock,
short
securities,
ETFs
and
restricted
securities
that
are
traded
on
a
national
securities
exchange
(or
reported
on
the
NASDAQ
national
market),
are
stated
at
the
last
reported
sales
price
on
the
day
of
valuation
or
official
closing
price,
as
applicable.
To
the
extent
these
securities
are
actively
traded,
and
valuation
adjustments
are
not
applied,
they
are
categorized
as
Level
1
of
the
fair
value
hierarchy.
Preferred
stock
and
other
equities
traded
on
inactive
markets
or
valued
by
reference
to
similar
instruments
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Certain
foreign
equity
securities
may
be
fair
valued
using
a
pricing
service
that
considers
the
correlation
of
the
trading
patterns
of
the
foreign
security
to
the
intraday
trading
in
the
U.S.
markets
for
investments
such
as
American
Depositary
Receipts,
financial
futures,
exchange-traded
funds,
and
the
movement
of
certain
indexes
of
securities,
based
on
the
statistical
analysis
of
historical
relationships.
Foreign
equity
securities
prices
as
described
above
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Fixed
income
securities
including
corporate,
convertible,
U.S.
government
agency,
municipal
bonds
and
notes,
U.S.
treasury
obligations,
sovereign
issues,
bank
loans,
bank
notes
and
non-U.S.
bonds
are
normally
valued
by
pricing
service
providers
that
use
broker
dealer
quotations
or
valuation
estimates
from
their
internal
pricing
models.
The
pricing
service
providers’
internal
models
use
inputs
that
are
observable
such
as
issuer
details,
interest
rates,
yield
curves,
prepayment
speeds,
credit
risks/spreads
and
default
rates.
Such
fixed
income
securities
that
use
pricing
service
internal
models
as
described
above
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Such
fixed
income
securities
that
use
broker
dealer
quotations
are
categorized
as
Level
3
of
the
fair
value
hierarchy.
Fixed
income
securities
purchased
on
a
delayed-delivery
basis
and
marked-to-market
daily
until
settlement
at
the
forward
settlement
date
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Mortgage
and
asset-backed
securities
are
usually
issued
as
separate
tranches,
or
classes,
of
securities
within
each
deal.
These
securities
are
also
normally
valued
by
pricing
service
providers
that
use
broker
dealer
quotations
or
valuation
estimates
from
their
internal
pricing
models.
The
pricing
models
for
these
securities
usually
consider
tranche-level
attributes,
including
estimated
cash
flows
of
each
tranche,
market-based
yield
spreads
for
each
tranche,
and
current
market
data,
as
well
as
incorporate
deal
collateral
performance,
as
available.
Mortgage
and
asset-backed
securities
that
use
these
and
similar
valuation
techniques
and
inputs
as
described
above
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Investments
in
investment
funds
that
are
not
traded
on
a
national
securities
exchange
will
be
valued
based
upon
the
NAV
of
such
investments.
The
Funds
have
adopted
the
authoritative
guidance
under
U.S.
GAAP
for
estimating
the
fair
value
of
investments
in
funds
that
have
calculated
NAV
per
share
in
accordance
with
the
specialized
accounting
guidance
for
investment
companies.
Accordingly,
the
Funds
estimate
the
fair
value
of
an
investment
in
a
fund
using
the
NAV
per
share
without
further
adjustment
as
a
practical
expedient,
if
the
NAV
per
share
of
the
investment
is
determined
in
accordance
with
the
specialized
accounting
guidance
for
investment
companies
as
of
the
reporting
entity’s
measurement
date.
Short-term
investments
having
a
maturity
of
60
days
or
less
are
generally
valued
at
amortized
cost,
which
approximates
fair
market
value.
These
investments
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Derivative
instruments
are
instruments
such
as
foreign
currency
contracts,
futures
contracts,
options
contracts,
or
swap
agreements
that
derive
their
value
from
underlying
asset
prices,
indices,
reference
rates,
and
other
inputs
or
a
combination
of
these
factors.
Derivatives
may
be
classified
into
two
groups
depending
upon
the
way
that
they
are
traded:
privately
traded
over-the-counter
(“OTC”)
derivatives
that
do
not
go
through
an
exchange
or
intermediary
and
exchange-traded
derivatives
that
are
traded
through
specialized
derivatives
exchanges
or
other
regulated
exchanges.
OTC
derivatives
are
normally
valued
on
the
basis
of
broker
dealer
quotations
or
pricing
service
providers.
Depending
on
the
product
and
the
terms
of
the
transaction,
the
value
of
the
derivative
instrument
can
be
estimated
by
a
pricing
service
provider
using
a
series
of
techniques,
including
simulation
pricing
models.
The
pricing
models
use
inputs
that
are
observed
from
actively
quoted
markets
such
as
issuer
details,
indices,
spreads,
interest
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
146
Notes
to
Financial
Statements
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.
Examples
of
significant
events
that
generally
trigger
fair
value
pricing
of
one
or
more
securities
are:
any
market
movement
of
the
U.S.
securities
market
(defined
in
the
fair
value
procedures
as
the
movement
of
a
single
major
U.S.
Index);
a
company
development
such
as
a
material
business
development;
a
natural
disaster,
a
public
health
emergency
affecting
one
or
more
countries
in
the
global
economy
(including
an
emergency
which
results
in
the
closure
of
financial
markets)
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
and
Global
Real
Estate
Securities
Funds
had
no
transfers
between
Levels
1,
2,
and
3
for
the
period
ended
June
30,
2020.
The
U.S.
Small
Cap
Equity
Fund
had
transfers
out
of
Level
1
into
Level
3
representing
financial
instruments
for
which
approved
vendor
sources
became
unavailable
or
inputs
became
unobservable.
The
amount
transferred
was
$150,220.
The
International
Developed
Markets
Fund
had
transfers
out
of
Level
2
into
Level
3
representing
financial
instruments
for
which
approved
vendor
sources
became
unavailable
or
inputs
became
unobservable.
The
amount
transferred
was
$160,093.
The
Strategic
Bond
Fund
had
transfers
out
of
Level
3
into
Level
2
representing
financial
instruments
for
which
approved
vendor
sources
became
available
or
inputs
became
observable.
The
amount
transferred
was
$585,802.
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
147
RIFUS
employs
third-party
pricing
vendors
to
provide
fair
value
measurements.
RIFUS
oversees
third-party
pricing
service
providers
in
order
to
support
the
valuation
process
throughout
the
year.
The
significant
unobservable
input
used
in
fair
value
measurement
of
certain
of
the
Funds’
preferred
equity
securities
is
the
redemption
value
calculated
on
a
fully-diluted
basis
if
converted
to
common
stock.
Significant
increases
or
decreases
in
the
redemption
value
would
have
a
direct
and
proportional
impact
to
fair
value.
The
significant
unobservable
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
within
a
particular
Fund.
Investment
Income
Dividend
income
is
recorded
net
of
applicable
withholding
taxes
on
the
ex-dividend
date,
except
that
certain
dividends
from
foreign
securities
are
recorded
as
soon
as
the
Funds
are
informed
of
the
dividend,
subsequent
to
the
ex-dividend
date.
To
the
extent
the
dividend
represents
a
return
of
capital
or
capital
gain
for
tax
purposes,
reclassifications
are
made
which
may
be
based
on
management's
estimates.
Interest
income
is
recorded
daily
on
the
accrual
basis.
The
Strategic
Bond
Fund
classifies
gains
and
losses
realized
on
prepayments
received
on
mortgage-backed
securities
as
an
adjustment
to
interest
income.
All
premiums
and
discounts,
including
original
issue
discounts,
are
amortized/
accreted
using
the
effective
interest
method.
Debt
obligation
securities
may
be
placed
in
a
non-accrual
status
and
related
interest
income
may
be
reduced
by
stopping
current
accruals
and
writing
off
interest
receivable
when
the
collection
of
all
or
a
portion
of
interest
has
become
doubtful.
Federal
Income
Taxes
Since
the
Investment
Company
is
a
Massachusetts
business
trust,
each
Fund
is
a
separate
corporate
taxpayer
and
determines
its
net
investment
income
and
capital
gains
(or
losses)
and
the
amounts
to
be
distributed
to
each
Fund’s
shareholders
without
regard
to
the
income
and
capital
gains
(or
losses)
of
the
other
Funds.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
148
Notes
to
Financial
Statements
For
each
year,
each
Fund
intends
to
qualify
or
continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
of
1986,
as
amended
(the
“Code”)
and
intends
to
distribute
all
of
its
taxable
income
and
capital
gains.
Therefore,
no
federal
income
tax
provision
is
required
for
the
Funds.
The
Funds
comply
with
the
authoritative
guidance
for
uncertainty
in
income
taxes
which
requires
management
to
determine
whether
a
tax
position
of
the
Funds
is
more
likely
than
not
to
be
sustained
upon
examination,
including
resolution
of
any
related
appeals
or
litigation
processes,
based
on
the
technical
merits
of
the
position.
For
tax
positions
meeting
the
more
likely
than
not
threshold,
the
tax
amount
recognized
in
the
financial
statements
is
reduced
by
the
largest
benefit
that
has
a
greater
than
50%
likelihood
of
being
realized
upon
ultimate
settlement
with
the
relevant
taxing
authority.
Management
determined
that
no
accruals
need
to
be
made
in
the
financial
statements
due
to
uncertain
tax
positions.
Management
continually
reviews
and
adjusts
the
Funds’
liability
for
income
taxes
based
on
analyses
of
tax
laws
and
regulations,
as
well
as
their
interpretations,
and
other
relevant
factors.
Each
Fund
files
a
U.S.
tax
return.
At
June
30,
2020,
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,
2017
through
December
31,
2019,
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
Declared
Payable
Funds
Quarterly
April,
July,
October
and
mid-December
U.S.
Strategic
Equity,
U.S.
Small
Cap
Equity,
Strategic
Bond
and
Global
Real
Estate
Securities
Funds
Annually
Mid-December
International
Developed
Markets
Fund
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
149
difference
between
the
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
recorded
on
the
Funds’
books
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
gains
or
losses
from
foreign
currency-related
transactions
arise
from
changes
in
the
value
of
assets
and
liabilities,
other
than
investments
in
securities,
as
a
result
of
changes
in
the
exchange
rates.
The
Funds
do
not
isolate
that
portion
of
the
results
of
operations
of
the
Funds
that
arises
as
a
result
of
changes
in
exchange
rates
from
that
portion
that
arises
from
changes
in
market
prices
of
investments
during
the
year.
Such
fluctuations
are
included
with
the
net
realized
and
unrealized
gain
or
loss
from
investments.
However,
for
federal
income
tax
purposes,
the
Funds
do
isolate
the
effects
of
changes
in
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
market
prices
for
realized
gain
(or
loss)
on
debt
obligations.
Capital
Gains
Taxes
The
Funds
may
be
subject
to
capital
gains
taxes
and
repatriation
taxes
imposed
by
certain
countries
in
which
they
invest.
The
International
Developed
Markets,
Strategic
Bond
and
Global
Real
Estate
Securities
Funds
may
record
a
deferred
capital
gains
tax
liability
with
respect
to
the
unrealized
appreciation
on
foreign
securities
for
potential
capital
gains
and
repatriation
taxes
at
June
30,
2020.
The
accrual
for
capital
gains
and
repatriation
taxes
is
included
in
net
unrealized
appreciation
(depreciation)
on
investments
in
the
Statements
of
Assets
and
Liabilities.
The
amounts
related
to
capital
gains
and
repatriation
taxes
are
included
in
net
realized
gain
(loss)
on
investments
in
the
Statements
of
Operations.
The
Strategic
Bond
Fund
had
a
deferred
capital
gains
tax
liability
of
$2,082
as
of
June
30,
2020.
The
Strategic
Bond
Fund
had
$10,320
included
in
net
realized
gain
(loss)
on
investments
in
the
Statements
of
Operations
related
to
capital
gains
taxes
for
the
period
ended
June
30,
2020.
Derivatives
The
Funds
may
invest
in
derivatives.
Derivatives
are
instruments
or
agreements
whose
value
is
derived
from
an
underlying
security
or
index.
They
include
options,
futures,
swaps
and
forwards.
These
instruments
offer
unique
characteristics
and
risks
that
facilitate
the
Funds'
investment
strategies.
The
Funds
typically
use
derivatives
in
three
ways:
exposing
cash
to
markets,
hedging
and
return
enhancement.
In
addition,
certain
Funds
may
enter
into
foreign
exchange
contracts
for
trade
settlement
purposes.
The
Funds
may
pursue
their
strategy
of
being
fully
invested
by
exposing
cash
to
the
performance
of
appropriate
markets
by
purchasing
securities
and/or
derivatives.
This
is
intended
to
cause
the
Funds
to
perform
as
though
cash
were
actually
invested
in
those
markets.
Hedging
may
be
used
by
certain
Funds
to
limit
or
control
risks,
such
as
adverse
movements
in
exchange
rates
and
interest
rates.
Return
enhancement
can
be
accomplished
through
the
use
of
derivatives
in
a
Fund,
including
using
derivatives
as
a
substitute
for
holding
physical
securities,
and
using
them
to
express
various
macro
views
(e.g.,
interest
rate
movements,
currency
movements,
and
macro
credit
strategies).
By
purchasing
certain
instruments,
the
Funds
may
more
effectively
achieve
the
desired
portfolio
characteristics
that
assist
them
in
meeting
their
investment
objectives.
Depending
on
how
the
derivatives
are
structured
and
utilized,
the
risks
associated
with
them
may
vary
widely.
These
risks
include,
but
are
not
limited
to,
market
risk,
liquidity
risk,
leveraging
risk,
counterparty
risk,
basis
risk,
reinvestment
risk,
political
risk,
prepayment
risk,
extension
risk,
valuation
risk
and
credit
risk.
Futures,
certain
options
and
cleared
swaps
are
traded
or
cleared
on
an
exchange
or
central
exchange
clearing
house.
Exchange-
traded
or
exchange-cleared
transactions
generally
present
less
counterparty
risk
to
a
Fund.
The
exchange’s
clearing
house
stands
between
the
Fund
and
the
broker
to
the
contract
and
therefore,
credit
risk
is
generally
limited
to
the
failure
of
the
clearing
house
and
the
clearing
member.
Cleared
swap
contracts
are
subject
to
clearing
house
rules,
including
initial
and
variation
margin
requirement,
daily
settlement
of
obligations
and
the
clearing
house
guarantee
of
payments
to
the
broker.
There
is,
however,
still
counterparty
risk
due
to
the
insolvency
of
the
broker
with
respect
to
any
margin
held
in
the
brokers’
customer
accounts.
While
clearing
members
are
required
to
segregate
customer
assets
from
their
own
assets,
in
the
event
of
insolvency,
there
may
be
a
shortfall
in
the
amount
of
margin
held
by
the
broker
for
its
clients.
Collateral
and
margin
requirements
for
exchange-traded
or
exchange-cleared
derivatives
are
established
through
regulation,
as
well
as
set
by
the
broker
or
applicable
clearing
house.
Margin
for
exchange-traded
and
exchange-cleared
transactions
are
detailed
in
the
Statements
of
Assets
and
Liabilities
as
Receivables
for
Variation
margin
on
futures
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
150
Notes
to
Financial
Statements
In
November
2019,
the
Securities
and
Exchange
Commission
("SEC")
proposed
new
regulations
applicable
to
a
mutual
fund’s
use
of
derivatives.
If
adopted
as
proposed,
these
regulations
could
potentially
limit
or
impact
a
Fund’s
ability
to
invest
in
derivatives
and
negatively
affect
the
Fund’s
performance
and
ability
to
pursue
its
stated
investment
objective.
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
June
30,
2020,
if
applicable,
are
disclosed
in
the
Fair
Value
of
Derivative
Instruments
table
following
each
applicable
Fund’s
Schedule
of
Investments.
Foreign
Currency
Exchange
Contracts
Certain
Funds
may
enter
into
foreign
currency
exchange
spot
contracts
and
forward
foreign
currency
exchange
contracts
("FX
contracts").
From
time
to
time,
certain
Funds
may
enter
into
FX
contracts
to
hedge
certain
foreign
currency-denominated
assets.
FX
contracts
are
recorded
at
fair
value.
Certain
risks
may
arise
upon
entering
into
these
FX
contracts
from
the
potential
inability
of
counterparties
to
meet
the
terms
of
their
FX
contracts
and
are
generally
limited
to
the
amount
of
unrealized
gain
on
the
FX
contracts,
if
any,
that
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
For
the
period
ended
June
30,
2020,
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
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,
2020
June
30,
2020
International
Developed
Markets
Fund
$
100,532,761
$
61,787,261
Strategic
Bond
Fund
316,376,044
282,765,016
Global
Real
Estate
Securities
Fund
42,972,669
36,224,112
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2020
June
30,
2020
International
Developed
Markets
Fund
$
98,889,123
$
61,391,421
Strategic
Bond
Fund
313,858,104
281,841,211
Global
Real
Estate
Securities
Fund
42,738,714
35,983,934
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
151
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.
Certain
Funds
may
enter
into
a
swaption
(an
option
on
a
swap).
In
a
swaption,
in
exchange
for
an
option,
the
buyer
gains
the
right
but
not
the
obligation
to
enter
into
a
specified
swap
agreement
with
the
issuer
on
a
specified
future
date.
The
writer
of
the
contract
receives
the
premium
and
bears
the
risk
of
unfavorable
changes
in
the
preset
rate
on
the
underlying
swap.
For
the
period
ended
June
30,
2020,
the
Strategic
Bond
Fund
purchased/sold
options
primarily
for
return
enhancement
and
hedging.
The
Strategic
Bond
Fund’s
options
contracts
notional
amounts
fluctuate
throughout
the
fiscal
year
as
required
to
meet
strategic
requirements.
The
following
table
illustrates
the
quarterly
volume
of
options
contracts
measured
by
notional
in
USD.
Futures
Contracts
The
Funds
may
invest
in
futures
contracts
(i.e.,
interest
rate,
foreign
currency
and
index
futures
contracts).The
face
or
contract
value
of
these
instruments
reflect
the
extent
of
the
Funds’
exposure
to
off
balance
sheet
risk.
The
primary
risks
associated
with
the
use
of
futures
contracts
are
an
imperfect
correlation
between
the
change
in
fair
value
of
the
securities
held
by
the
Funds
and
the
prices
of
futures
contracts,
and
the
possibility
of
an
illiquid
market.
Upon
entering
into
a
futures
contract,
the
Funds
are
required
to
deposit
with
a
broker
an
amount,
termed
the
initial
margin,
which
typically
represents
5%
to
10%
of
the
purchase
price
indicated
in
the
futures
contract.
Payments
to
and
from
the
broker,
known
as
variation
margin,
are
typically
required
to
be
made
on
a
daily
basis
as
the
price
of
the
futures
contract
fluctuates.
Changes
in
initial
settlement
value
are
accounted
for
as
unrealized
appreciation
(depreciation)
until
the
contracts
are
terminated,
at
which
time
realized
gains
and
losses
are
recognized.
For
the
period
ended
June
30,
2020,
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).
Notional
of
Options
Contracts
Outstanding
Funds
March
31,
2020
June
30,
2020
Strategic
Bond
Fund
$
201,502,250
$
—
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,
2020
June
30,
2020
U.S.
Strategic
Equity
Fund
$
30,322,460
$
17,768,650
U.S.
Small
Cap
Equity
Fund
15,148,320
12,003,960
International
Developed
Markets
Fund
121,418,445
125,785,574
Strategic
Bond
Fund
1,076,512,278
755,213,567
Global
Real
Estate
Securities
Fund
63,857,884
55,071,146
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
152
Notes
to
Financial
Statements
Certain
Funds
may
enter
into
several
different
types
of
swap
agreements
including
credit
default,
interest
rate,
total
return
(equity
and/or
index)
and
currency
swaps.
Credit
default
swaps
are
a
counterparty
agreement
which
allows
the
transfer
of
third-party
credit
risk
(the
possibility
that
an
issuer
will
default
on
its
obligation
by
failing
to
pay
principal
or
interest
in
a
timely
manner)
from
one
party
to
another.
The
lender
faces
the
credit
risk
from
a
third-party
and
the
counterparty
in
the
swap
agrees
to
insure
this
risk
in
exchange
for
regular
periodic
payments.
Interest
rate
swaps
are
a
counterparty
agreement,
can
be
customized
to
meet
each
party’s
needs,
and
involve
the
exchange
of
a
fixed
or
variable
payment
per
period
for
a
payment
that
is
not
fixed.
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
153
Deliverable
obligations
for
credit
default
swaps
on
asset-backed
securities
in
most
instances
are
limited
to
the
specific
referenced
obligation
as
performance
for
asset-backed
securities
can
vary
across
deals.
Prepayments,
principal
paydowns,
and
other
writedown
or
loss
events
on
the
underlying
mortgage
loans
will
reduce
the
outstanding
principal
balance
of
the
referenced
obligation.
These
reductions
may
be
temporary
or
permanent
as
defined
under
the
terms
of
the
swap
agreement
and
the
notional
amount
for
the
swap
agreement
generally
will
be
adjusted
by
corresponding
amounts.
The
Strategic
Bond
Fund
may
use
credit
default
swaps
on
asset-
backed
securities
to
provide
a
measure
of
protection
against
defaults
(or
other
defined
credit
events)
of
the
referenced
obligation
or
to
take
an
active
long
or
short
position
with
respect
to
the
likelihood
of
a
particular
referenced
obligation’s
default
(or
another
defined
credit
event).
Credit
default
swap
agreements
on
credit
indices
involve
one
party
making
a
stream
of
payments
to
another
party
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
write-down,
principal
shortfall,
interest
shortfall
or
default
of
all
or
part
of
the
referenced
entities
comprising
the
credit
index.
A
credit
index
is
a
basket
of
credit
instruments
or
exposures
designed
to
be
representative
of
some
part
of
the
credit
market
as
a
whole.
These
indices
are
made
up
of
reference
credits
that
are
judged
by
a
poll
of
dealers
to
be
the
most
liquid
entities
in
the
credit
default
swap
market
based
on
the
sector
of
the
index.
Components
of
the
indices
may
include,
but
are
not
limited
to,
investment
grade
securities,
high
yield
securities,
asset-backed
securities,
emerging
markets,
and/or
various
credit
ratings
within
each
sector.
Credit
indices
are
traded
using
credit
default
swaps
with
standardized
terms
including
a
fixed
spread
and
standard
maturity
dates.
An
index
credit
default
swap
references
all
the
names
in
the
index,
and
if
there
is
a
default,
the
credit
event
is
settled
based
on
that
name’s
weight
in
the
index.
The
composition
of
the
indices
changes
periodically,
usually
every
six
months,
and,
for
most
indices,
each
name
has
an
equal
weight
in
the
index.
Traders
may
use
credit
default
swaps
on
indices
to
speculate
on
changes
in
credit
quality.
Implied
credit
spreads,
represented
in
absolute
terms,
utilized
in
determining
the
fair
value
of
credit
default
swap
agreements
on
corporate
issues
as
of
period-end
are
disclosed
in
the
Schedules
of
Investments
and
generally
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
(or
other
defined
credit
event)
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
entering
into
a
credit
default
swap
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
For
credit
default
swap
agreements
on
asset-
backed
securities
and
credit
indices,
the
quoted
market
prices
and
resulting
values
serve
as
the
indicator
of
the
current
status
of
the
payment/performance
risk.
Wider
credit
spreads
and
increasing
fair
values,
in
absolute
terms
when
compared
to
the
notional
amount
of
the
swap,
generally
represent
a
deterioration
of
the
referenced
entity’s
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
the
Fund
as
a
seller
of
protection
could
be
required
to
make
under
a
credit
default
swap
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
all
credit
default
swap
agreements
outstanding
as
of
June
30,
2020,
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
154
Notes
to
Financial
Statements
For
the
period
ended
June
30,
2020,
the
Strategic
Bond
Fund
entered
into
credit
default
swaps
primarily
for
return
enhancement,
hedging
and
exposing
cash
to
markets.
The
Strategic
Bond
Fund’s
credit
default
swap
contract
notional
amounts
outstanding
fluctuate
throughout
the
fiscal
year
as
required
to
meet
strategic
requirements.
The
following
table
illustrates
the
quarterly
volume
of
credit
default
swap
contracts.
For
the
purpose
of
this
disclosure,
volume
is
measured
by
notional
amounts
outstanding
in
USD
at
each
quarter
end.
Interest
Rate
Swaps
The
use
of
interest
rate
swaps
is
a
highly
specialized
activity
which
involves
investment
techniques
and
risks
different
from
those
associated
with
ordinary
portfolio
securities
transactions.
If
RIM
or
a
money
manager
using
this
technique
is
incorrect
in
its
forecast
of
fair
values,
interest
rates
and
other
applicable
factors,
the
investment
performance
of
a
Fund
might
diminish
compared
to
what
it
would
have
been
if
this
investment
technique
were
not
used.
Interest
rate
swaps
do
not
involve
the
delivery
of
securities
or
other
underlying
assets
or
principal.
Accordingly,
the
risk
of
loss
with
respect
to
interest
rate
swaps
is
limited
to
the
net
amount
of
interest
payments
that
a
Fund
is
contractually
obligated
to
make.
Interest
rate
swaps
are
traded
on
exchanges
and
are
subject
to
central
clearing.
If
the
clearing
house
or
futures
commission
merchant
defaults,
a
Funds'
risk
of
loss
consists
of
the
net
amount
of
interest
payments
that
a
Fund
is
contractually
entitled
to
receive.
The
counterparty
risk
for
cleared
derivatives
is
generally
lower
than
for
uncleared
derivatives.
However,
clearing
may
subject
a
Fund
to
increased
costs
or
margin
requirements.
For
the
period
ended
June
30,
2020,
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
June
30,
2020,
there
were
no
total
return
swaps
held
in
the
Funds.
Currency
Swaps
Certain
Funds
may
enter
into
currency
swap
agreements
to
enhance
returns
or
for
hedging
purposes.
Currency
swap
agreements
are
agreements
where
two
parties
exchange
specified
amounts
of
different
currencies
which
are
followed
by
paying
the
other
a
series
of
interest
payments
that
are
based
on
the
principal
cash
flow.
At
maturity,
the
principal
amounts
are
exchanged.
For
the
period
ended
June
30,
2020,
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
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2020
June
30,
2020
Strategic
Bond
Fund
$
164,893,255
$
99,202,500
Interest
Rate
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2020
June
30,
2020
Strategic
Bond
Fund
$
108,838,242
$
135,228,872
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
155
to
elect
to
terminate
early
and
cause
settlement
of
all
outstanding
transactions
under
the
applicable
ISDA
Master
Agreement.
Any
election
to
terminate
early
could
be
material
to
the
financial
statements.
Since
different
types
of
forward
and
OTC
financial
derivative
transactions
have
different
mechanics
and
are
sometimes
traded
out
of
different
legal
entities
of
a
particular
counterparty
organization,
each
type
of
transaction
may
be
covered
by
a
different
ISDA
Master
Agreement,
resulting
in
the
need
for
multiple
agreements
with
a
single
counterparty.
As
the
ISDA
Master
Agreements
are
specific
to
unique
operations
of
different
asset
types,
they
allow
a
Fund
to
net
its
total
exposure
to
a
counterparty
in
the
event
of
a
default
with
respect
to
all
the
transactions
governed
under
a
single
agreement
with
a
counterparty.
Master
Repurchase
Agreements
(“Master
Repo
Agreements”)
govern
transactions
between
a
Fund
and
select
counterparties.
The
Master
Repo
Agreements
maintain
provisions
for,
among
other
things,
initiation,
income
payments,
events
of
default,
and
maintenance
of
collateral
for
repurchase
and
reverse
repurchase
agreements.
Master
Securities
Forward
Transaction
Agreements
(“Master
Forward
Agreements”)
govern
the
considerations
and
factors
surrounding
the
settlement
of
certain
forward
settling
transactions,
such
as
delayed
delivery
by
and
between
a
Fund
and
select
counterparties.
The
Master
Forward
Agreements
maintain
provisions
for,
among
other
things,
initiation
and
confirmation,
payment
and
transfer,
events
of
default,
termination,
and
maintenance
of
collateral.
Disclosure
about
Offsetting
Assets
and
Liabilities
Balance
sheet
disclosure
is
based
on
various
netting
agreements
between
brokers
and
counterparties,
such
as
ISDA
Master
Agreements,
Master
Repo
Agreements
and
Master
Forward
Agreements.
Certain
Funds
utilize
multiple
counterparties.
The
quantitative
disclosure
begins
with
disaggregation
of
counterparties
by
legal
entity
and
the
roll
up
of
the
data
to
reflect
a
single
counterparty
in
the
table
within
the
Funds’
financial
statements.
Net
exposure
represents
the
net
receivable
(payable)
that
would
be
due
from/to
the
counterparty
in
the
event
of
default.
Exposure
from
OTC
derivatives
can
only
be
netted
across
transactions
governed
under
the
same
Master
Agreement
with
the
same
legal
entity.
Loan
Agreements
The
Strategic
Bond
Fund
may
invest
in
direct
debt
instruments
which
are
interests
in
amounts
owed
by
corporate,
governmental,
or
other
borrowers
to
lenders
or
lending
syndicates.
The
Fund’s
investments
in
loans
may
be
in
the
form
of
participations
in
loans
or
assignments
of
all
or
a
portion
of
loans
from
third
parties.
A
loan
is
often
administered
by
a
bank
or
other
financial
institution
(the
“agent”)
that
acts
as
agent
for
all
holders.
The
agent
administers
the
terms
of
the
loan,
as
specified
in
the
loan
agreement.
When
investing
in
a
loan
participation,
the
Fund
has
the
right
to
receive
payments
of
principal,
interest
and
any
fees
to
which
it
is
entitled
only
from
the
agent
selling
the
loan
agreement
and
only
upon
receipt
by
the
agent
of
payments
from
the
borrower.
The
Fund
generally
has
no
right
to
enforce
compliance
with
the
terms
of
the
loan
agreement
with
the
borrower.
As
a
result,
the
Fund
may
be
subject
to
the
credit
risk
of
both
the
borrower
and
the
agent
that
is
selling
the
loan
agreement.
When
the
Fund
purchases
assignments
from
agents
it
acquires
direct
rights
against
the
borrower
on
the
loan.
The
total
amount
of
unfunded
loan
commitments
as
of
June
30,
2020
was
$18,919.
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
156
Notes
to
Financial
Statements
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.
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.
A
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.
A
Fund
will
realize
a
gain
if
the
security
declines
in
price
between
those
dates.
Short
sales
expose
a
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
a
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
a
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.
The
U.S.
Small
Cap
Equity
Fund
currently
engages
in
short
sale
transactions
that
are
effected
through
State
Street
but
reserves
the
right
to
engage
in
short
sale
transactions
through
one
or
more
other
counterparties.
For
short
sale
transactions
effected
through
State
Street,
the
Fund
typically
expects
to
collateralize
short
sale
transactions
through
the
Fund’s
respective
reciprocal
lending
activity
with
State
Street
(i.e.,
short
sale
transactions
are
collateralized
by
securities
loaned
to
State
Street
for
purposes
of
securities
lending
activities).
The
Fund
may
also
deliver
cash
to
State
Street
for
the
purposes
of
collateralizing
its
short
sales
transactions
or
“memo
pledge”
securities
as
collateral,
whereby
assets
are
designated
as
collateral
by
State
Street
on
State
Street’s
books
but
remain
in
the
Fund’s
custody
account.
Similar
to
the
risks
generally
applicable
to
securities
lending
arrangements,
participation
in
the
reciprocal
lending
program
subjects
the
Fund
to
the
risk
that
State
Street
could
fail
to
return
a
security
lent
to
it
by
the
Fund,
or
fail
to
return
the
Fund’s
cash
collateral,
a
risk
which
would
increase
with
any
decline
in
State
Street’s
credit
profile.
However,
the
impact
of
State
Street’s
failure
to
return
a
security
lent
to
it
by
a
Fund,
or
failure
to
return
a
Fund’s
cash
collateral,
would
be
mitigated
by
the
Fund’s
right
under
such
circumstances
to
decline
to
return
the
securities
the
Fund
initially
borrowed
from
State
Street
with
respect
to
its
short
sale
transactions.
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).
To
the
extent
necessary
to
meet
collateral
requirements
associated
with
a
short
sale
transaction
involving
a
counterparty
other
than
State
Street,
the
Funds
are
required
to
pledge
assets
in
a
segregated
account
maintained
by
the
Funds’
custodian
for
the
benefit
of
the
broker.
The
Fund
may
also
use
securities
it
owns
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
positions
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).
These
requirements
may
result
in
the
Fund
being
unable
to
purchase
or
sell
securities
or
instruments
when
it
would
otherwise
be
favorable
to
do
so,
or
in
the
Fund
needing
to
sell
holdings
at
a
disadvantageous
time
to
satisfy
its
obligations
or
to
meet
segregation
requirements.
If
the
Fund’s
prime
broker
fails
to
make
or
take
delivery
of
a
security
as
part
of
a
short
sale
transaction,
or
fails
to
make
a
cash
settlement
payment,
the
settlement
of
the
transaction
may
be
delayed
and
the
Fund
may
lose
money.
As
of
June
30,
2020,
the
market
value
of
the
securities
on
loan
through
the
reciprocal
lending
program
for
U.S.
Small
Cap
Equity
Fund
was
$6,737,773.
As
of
June
30,
2020
the
U.S.
Small
Cap
Equity
Fund
held
$9,912,291
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
157
currency),
U.S.
Government
or
U.S.
Government
Agency
obligations
as
collateral
against
the
loaned
securities.
The
collateral
cannot
be
resold,
repledged
or
rehypothecated.
As
of
June
30,
2020,
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,
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
158
Notes
to
Financial
Statements
other
securities
that
directly
or
indirectly
represent
a
participation
in,
or
are
secured
by
a
payable
from,
mortgage
loans
on
real
property.
The
value
of
a
Fund’s
mortgage-backed
securities
(“MBS”)
may
be
affected
by,
among
other
things,
changes
or
perceived
changes
in
interest
rates,
factors
concerning
the
interests
in
and
structure
of
the
issuer
or
the
originator
of
the
mortgage,
or
the
quality
of
the
underlying
assets.
The
mortgages
underlying
the
securities
may
default
or
decline
in
quality
or
value.
Through
its
investments
in
MBS,
a
Fund
has
exposure
to
subprime
loans,
Alt-A
loans
and
non-conforming
loans
as
well
as
to
the
mortgage
and
credit
markets
generally.
Underlying
collateral
related
to
subprime,
Alt-A
and
non-conforming
mortgage
loans
has
become
increasingly
susceptible
to
defaults
and
declines
in
quality
or
value,
especially
in
a
declining
residential
real
estate
market.
In
addition,
regulatory
or
tax
changes
may
adversely
affect
the
mortgage
securities
markets
as
a
whole.
Mortgage-Backed
Securities
MBS
often
have
stated
maturities
of
up
to
thirty
years
when
they
are
issued,
depending
upon
the
length
of
the
mortgages
underlying
the
securities.
In
practice,
however,
unscheduled
or
early
payments
of
principal
and
interest
on
the
underlying
mortgages
may
make
the
securities’
effective
maturity
shorter
than
this,
and
the
prevailing
interest
rates
may
be
higher
or
lower
than
the
current
yield
of
a
Fund’s
portfolio
at
the
time
resulting
in
reinvestment
risk.
Rising
or
high
interest
rates
may
result
in
slower
than
expected
principal
payments
which
may
tend
to
extend
the
duration
of
MBS,
making
them
more
volatile
and
more
sensitive
to
changes
in
interest
rates.
This
is
known
as
extension
risk.
MBS
may
have
less
potential
for
capital
appreciation
than
comparable
fixed
income
securities
due
to
the
likelihood
of
increased
prepayments
of
mortgages
resulting
from
foreclosures
or
declining
interest
rates.
These
foreclosed
or
refinanced
mortgages
are
paid
off
at
face
value
(par)
or
less,
causing
a
loss,
particularly
for
any
investor
who
may
have
purchased
the
security
at
a
premium
or
a
price
above
par.
In
such
an
environment,
this
risk
limits
the
potential
price
appreciation
of
these
securities.
Agency
Mortgage-Backed
Securities
Certain
MBS
may
be
issued
or
guaranteed
by
the
U.S.
government
or
a
government
sponsored
entity,
such
as
Fannie
Mae
(the
Federal
National
Mortgage
Association)
or
Freddie
Mac
(the
Federal
Home
Loan
Mortgage
Corporation).
Although
these
instruments
may
be
guaranteed
by
the
U.S.
government
or
a
government
sponsored
entity,
many
such
MBS
are
not
backed
by
the
full
faith
and
credit
of
the
United
States
and
are
still
exposed
to
the
risk
of
non-payment.
Privately
Issued
Mortgage-Backed
Securities
MBS
held
by
a
Fund
may
be
issued
by
private
issuers
including
commercial
banks,
savings
associations,
mortgage
companies,
investment
banking
firms,
finance
companies
and
special
purpose
finance
entities
(called
special
purpose
vehicles
or
SPVs)
and
other
entities
that
acquire
and
package
mortgage
loans
for
resale
as
MBS.
These
privately
issued
non-agency
MBS
may
offer
higher
yields
than
those
issued
by
government
agencies,
but
also
may
be
subject
to
greater
price
changes
than
governmental
issues.
Subprime
loans
refer
to
loans
made
to
borrowers
with
weakened
credit
histories
or
with
a
lower
capacity
to
make
timely
payments
on
their
loans.
Alt-A
loans
refer
to
loans
extended
to
borrowers
who
have
incomplete
documentation
of
income,
assets,
or
other
variables
that
are
important
to
the
credit
underwriting
processes.
Non-conforming
mortgages
are
loans
that
do
not
meet
the
standards
that
allow
purchase
by
government-sponsored
enterprises.
MBS
with
exposure
to
subprime
loans,
Alt-A
loans
or
nonconforming
loans
have
had
in
many
cases
higher
default
rates
than
those
loans
that
meet
government
underwriting
requirements.
The
risk
of
non-payment
is
greater
for
MBS
that
are
backed
by
mortgage
pools
that
contain
subprime,
Alt-A
and
non-conforming
loans,
but
a
level
of
risk
exists
for
all
loans.
Unlike
agency
MBS
issued
or
guaranteed
by
the
U.S.
government
or
a
government-sponsored
entity
(e.g.,
Fannie
Mae
and
Freddie
Mac),
MBS
issued
by
private
issuers
do
not
have
a
government
or
government-sponsored
entity
guarantee,
but
may
have
credit
enhancements
provided
by
external
entities
such
as
banks
or
financial
institutions
or
achieved
through
the
structuring
of
the
transaction
itself.
Examples
of
such
credit
support
arising
out
of
the
structure
of
the
transaction
include
the
issue
of
senior
and
subordinated
securities
(e.g.,
the
issuance
of
securities
by
an
SPV
in
multiple
classes
or
tranches,
with
one
or
more
classes
being
senior
to
other
subordinated
classes
as
to
the
payment
of
principal
and
interest,
with
the
result
that
defaults
on
the
underlying
mortgage
loans
are
borne
first
by
the
holders
of
the
subordinated
class);
creation
of
reserve
funds
(in
which
case
cash
or
investments,
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
159
to
those
MBS
that
have
a
government
or
government-sponsored
entity
guarantee.
As
a
result,
the
mortgage
loans
underlying
private
MBS
may,
and
frequently
do,
have
less
favorable
collateral,
credit
risk
or
other
underwriting
characteristics
than
government
or
government-sponsored
MBS
and
have
wider
variances
in
a
number
of
terms
including
interest
rate,
term,
size,
purpose
and
borrower
characteristics.
Privately
issued
pools
more
frequently
include
second
mortgages,
high
loan-to-value
mortgages
and
manufactured
housing
loans.
The
coupon
rates
and
maturities
of
the
underlying
mortgage
loans
in
a
private-label
MBS
pool
may
vary
to
a
greater
extent
than
those
included
in
a
government
guaranteed
pool,
and
the
pool
may
include
subprime
mortgage
loans.
Privately
issued
MBS
are
not
traded
on
an
exchange
and
there
may
be
a
limited
market
for
the
securities,
especially
when
there
is
a
perceived
weakness
in
the
mortgage
and
real
estate
market
sectors.
Without
an
active
trading
market,
MBS
held
in
a
Fund's
portfolio
may
be
particularly
difficult
to
value
because
of
the
complexities
involved
in
assessing
the
value
of
the
underlying
mortgage
loans.
Asset-Backed
Securities
ABS
may
include
MBS,
loans,
receivables
or
other
assets.
The
value
of
the
Funds’
ABS
may
be
affected
by,
among
other
things,
actual
or
perceived
changes
in
interest
rates,
factors
concerning
the
interests
in
and
structure
of
the
issuer
or
the
originator
of
the
receivables,
the
market’s
assessment
of
the
quality
of
underlying
assets
or
actual
or
perceived
changes
in
the
credit
worthiness
of
the
individual
borrowers,
the
originator,
the
servicing
agent
or
the
financial
institution
providing
the
credit
support.
Payment
of
principal
and
interest
may
be
largely
dependent
upon
the
cash
flows
generated
by
the
assets
backing
the
securities.
Rising
or
high
interest
rates
tend
to
extend
the
duration
of
ABS,
making
them
more
volatile
and
more
sensitive
to
changes
in
interest
rates.
The
underlying
assets
are
sometimes
subject
to
prepayments
which
can
shorten
the
security’s
weighted
average
life
and
may
lower
its
return.
Defaults
on
loans
underlying
ABS
have
become
an
increasing
risk
for
ABS
that
are
secured
by
home
equity
loans
related
to
sub-prime,
Alt-A
or
non-conforming
mortgage
loans,
especially
in
a
declining
residential
real
estate
market.
ABS
(other
than
MBS)
present
certain
risks
that
are
not
presented
by
MBS.
Primarily,
these
securities
may
not
have
the
benefit
of
any
security
interest
in
the
related
assets.
Credit
card
receivables
are
generally
unsecured
and
the
debtors
are
entitled
to
the
protection
of
a
number
of
state
and
federal
consumer
credit
laws,
many
of
which
give
such
debtors
the
right
to
set
off
certain
amounts
owed
on
the
credit
cards,
thereby
reducing
the
balance
due.
There
is
the
possibility
that
recoveries
on
repossessed
collateral
may
not,
in
some
cases,
be
available
to
support
payments
on
these
securities.
ABS
are
often
backed
by
a
pool
of
assets
representing
the
obligations
of
a
number
of
different
parties.
To
lessen
the
effect
of
failures
by
obligors
on
underlying
assets
to
make
payments,
the
securities
may
contain
elements
of
credit
support
which
fall
into
two
categories:
(i)
liquidity
protection,
and
(ii)
protection
against
losses
resulting
from
ultimate
default
by
an
obligor
on
the
underlying
assets.
Liquidity
protection
refers
to
the
provision
of
advances,
generally
by
the
entity
administering
the
pool
of
assets,
to
ensure
that
the
receipt
of
payments
on
the
underlying
pool
occurs
in
a
timely
fashion.
Protection
against
losses
results
from
payment
of
the
insurance
obligations
on
at
least
a
portion
of
the
assets
in
the
pool.
This
protection
may
be
provided
through
guarantees,
policies
or
letters
of
credit
obtained
by
the
issuer
or
sponsor
from
third
parties,
through
various
means
of
structuring
the
transaction
or
through
a
combination
of
such
approaches.
The
Fund
will
not
pay
any
additional
or
separate
fees
for
credit
support.
The
degree
of
credit
support
provided
for
each
issue
is
generally
based
on
historical
information
respecting
the
level
of
credit
risk
associated
with
the
underlying
assets.
Delinquency
or
loss
in
excess
of
that
anticipated
or
failure
of
the
credit
support
could
adversely
affect
the
return
on
an
investment
in
such
a
security.
The
availability
of
ABS
may
be
affected
by
legislative
or
regulatory
developments.
It
is
possible
that
such
developments
may
require
the
Funds
to
dispose
of
any
then-existing
holdings
of
such
securities.
Forward
Commitments
The
Strategic
Bond
Fund
may
contract
to
purchase
securities
for
a
fixed
price
at
a
future
date
beyond
customary
settlement
time.
The
price
of
the
underlying
securities
and
the
date
when
the
securities
will
be
delivered
and
paid
for
are
fixed
at
the
time
the
transaction
is
negotiated.
The
Fund
may
dispose
of
a
forward
commitment
transaction
prior
to
settlement
if
it
is
appropriate
to
do
so
and
may
realize
short-term
gains
(or
losses)
upon
such
sale.
When
effecting
such
transactions,
cash
or
liquid
high-grade
debt
obligations
of
the
Fund
in
a
dollar
amount
sufficient
to
make
payment
for
the
portfolio
securities
to
be
purchased
will
be
earmarked
on
the
Fund’s
records
at
the
trade
date
and
until
the
transaction
is
settled.
A
forward
commitment
transaction
involves
a
risk
of
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
160
Notes
to
Financial
Statements
principal
amount
and
maturity
date
will
be
determined
upon
settlement
when
the
specific
mortgage
pools
are
assigned.
These
securities
are
within
the
parameters
of
industry
“good
delivery”
standards.
As
of
June
30,
2020,
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.
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
due
to
international
trade
disputes)
and
events
(including
natural
disasters,
pandemics,
epidemics,
social
unrest
and
government
shutdowns)
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
161
Investment
Transactions
Securities
During
the
period
ended
June,
30,
2020,
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:
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
June
30,
2020,
the
Funds
had
invested
$188,962,778
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
$43,590,579
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
June
30,
2020:
There
were
no
advisory
fee
waivers
for
the
Funds
during
the
period.
Purchases
Sales
U.S.
Strategic
Equity
Fund
$
146,592,295
$
178,946,242
U.S.
Small
Cap
Equity
Fund
128,922,139
134,055,387
International
Developed
Markets
Fund
130,774,540
148,812,203
Strategic
Bond
Fund
199,936,865
161,788,010
Global
Real
Estate
Securities
Fund
475,931,390
461,166,122
Purchases
Sales
Strategic
Bond
Fund
$
276,763,176
$
365,947,750
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
$
1,683,646
$
115,318
U.S.
Small
Cap
Equity
Fund
835,631
46,424
International
Developed
Markets
Fund
1,498,509
83,250
Strategic
Bond
Fund
2,444,513
222,228
Global
Real
Estate
Securities
Fund
3,304,141
206,509
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
162
Notes
to
Financial
Statements
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
June
30,
2020
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.
Trades
placed
through
RIIS
and
its
independent
brokers
are
made
(i)
to
manage
trading
associated
with
changes
in
money
managers,
rebalancing
across
existing
money
managers,
cash
flows
and
other
portfolio
transitions,
(ii)
to
execute
portfolio
securities
transactions
for
the
portion
of
each
Fund’s
assets
that
RIM
determines
not
to
allocate
to
money
managers,
(iii)
to
execute
portfolio
securities
transactions
for
the
portion
of
a
Fund’s
assets
that
RIM
manages
based
upon
model
portfolios
provided
by
the
Fund’s
non-discretionary
managers
or
(iv)
to
execute
money
manager’s
portfolio
securities
transactions
for
the
segment
of
a
Fund’s
portfolio
assigned
to
the
money
manager.
RIM
has
authorized
RIIS
to
effect
certain
futures,
swaps,
OTC
derivative
transactions,
and
cleared
swaps,
including
foreign
currency
spots,
forwards
and
options
trading
on
behalf
of
the
Funds.
The
Funds
are
permitted
to
purchase
or
sell
securities
from
or
to
certain
related
affiliated
funds
under
specified
conditions
outlined
in
procedures
adopted
by
the
Board.
The
procedures
have
been
designed
to
ensure
that
any
purchase
or
sale
of
securities
by
the
Funds
from
or
to
another
fund
or
portfolio
that
are,
or
could
be,
considered
an
affiliate
by
virtue
of
having
a
common
investment
adviser
(or
affiliated
investment
advisers),
common
Trustees
and/or
common
officers
complies
with
Rule
17a
-7
of
the
Investment
Company
Act.
Further,
as
defined
under
the
procedures
each
transaction
is
effected
at
the
current
market
value.
During
the
period
ended
June
30,
2020,
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
June
30,
2020,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$984,750.
Federal
Income
Taxes
At
June
30,
2020,
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:
Amount
U.S.
Strategic
Equity
Fund
$
10,148
U.S.
Small
Cap
Equity
Fund
4,085
International
Developed
Markets
Fund
7,326
Strategic
Bond
Fund
19,556
Global
Real
Estate
Securities
Fund
18,173
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
163
Record
Ownership
At
June
30,
2020,
the
following
table
includes
shareholders
of
record
with
greater
than
10%
of
the
total
outstanding
shares
of
each
respective
Fund:
Restricted
Securities
Restricted
securities
are
subject
to
contractual
restrictions
on
resale,
are
often
issued
in
private
placement
transactions,
and
are
not
registered
under
the
Securities
Act
of
1933,
as
amended
("the
Act").
The
most
common
types
of
restricted
securities
are
those
sold
under
Rule
144A
of
the
Act
and
commercial
paper
sold
under
Section
4(2)
of
the
Act.
See
each
Fund’s
Schedule
of
Investments
for
a
list
of
securities
that
have
been
footnoted
as
restricted.
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
events
have
occurred
that
require
disclosure
except
the
following:
On
July
1,
2020,
the
Board
declared
dividends
payable
from
net
investment
income.
Dividends
were
paid
on
July
6,
2020
to
shareholders
of
record
effective
with
the
opening
on
July
2,
2020.
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
77.5
U.S.
Small
Cap
Equity
Fund
2
72.4
International
Developed
Markets
Fund
2
72.3
Strategic
Bond
Fund
2
84.9
Global
Real
Estate
Securities
Fund
2
90.6
Russell
Investment
Funds
Affiliated
Brokerage
Transactions
—
June
30,
2020
(Unaudited)
164
Affiliated
Brokerage
Transactions
As
stated
in
the
Note
4
in
the
Notes
to
Financial
Statements
contained
in
this
semi-annual
report,
the
Funds
utilize
RIIS
and
its
independent
brokers.
RIIS
is
a
registered
broker
dealer
and
investment
adviser
and
an
affiliate
of
RIM.
RIIS
uses
a
multi-venue
trade
management
approach
whereby
RIIS
allocates
trades
among
RIIS’
network
of
independent
brokers
for
execution,
clearing,
and
other
services.
Trades
placed
through
RIIS
and
its
independent
brokers
are
made
(i)
to
manage
trading
associated
with
changes
in
money
managers,
rebalancing
across
existing
money
managers,
cash
flows
and
other
portfolio
transitions,
(ii)
to
execute
portfolio
securities
transactions
for
each
Fund’s
assets
that
RIM
determines
not
to
allocate
to
money
managers,
(iii)
to
execute
portfolio
securities
transactions
for
the
portion
of
a
Fund’s
assets
that
RIM
manages
based
upon
model
portfolios
provided
by
the
Funds’
non-discretionary
managers
or
(iv)
to
execute
money
manager
portfolio
securities
transactions
for
the
segment
of
a
Fund’s
portfolio
assigned
to
the
money
manager.
RIM
has
authorized
RIIS
to
effect
certain
futures,
swaps,
OTC
derivative
transactions,
and
cleared
swaps,
including
foreign
currency
spots,
forwards
and
options
trading
on
behalf
of
the
Funds.
Amounts
retained
by
RIIS
for
the
period
ended
June
30,
2020
were
as
follows:
Fund
Name
Amount
U.S.
Strategic
Equity
Fund
$
14,723
U.S.
Small
Cap
Equity
Fund
29,400
International
Developed
Markets
Fund
41,816
Strategic
Bond
Fund
—
Global
Real
Estate
Securities
Fund
99,702
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
165
Approval
of
Investment
Advisory
Agreement
The
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
requires
that
the
Board
of
Trustees
(the
“Board”),
including
a
majority
of
its
members
who
are
not
considered
to
be
“interested
persons”
under
the
1940
Act
(the
“Independent
Trustees”)
voting
separately,
approve
for
an
initial
term
not
to
exceed
two
years
and,
thereafter,
approve
the
continuation
of
the
advisory
agreement
with
Russell
Investment
Management,
LLC
(“RIM”)
(the
“RIM
Agreement”)
and
the
portfolio
management
contract
with
each
Money
Manager
of
the
Funds
(collectively,
the
“portfolio
management
contracts”
and,
with
the
RIM
Agreement,
the
“Agreements”)
on
at
least
an
annual
basis
and
that
the
terms
and
conditions
of
the
RIM
Agreement
and
the
terms
and
conditions
of
each
portfolio
management
contract
provide
for
its
termination
if
continuation
is
not
approved
annually.
The
Board,
which
is
currently
comprised
entirely
of
Independent
Trustees
(the
“Trustees”),
considered
the
continuation
of
the
Agreements
at
a
meeting
held
by
video
conference
on
May
15,
2020
(the
“Agreement
Evaluation
Meeting”),
and
further
considered
and
approved
the
continuation
of
the
Agreements
at
a
meeting
held
by
video
conference
on
May
18-19,
2020
(the
“Agreement
Approval
Meeting”)
in
reliance
on
the
exemptive
order
for
temporary,
conditional
relief
from
the
in-person
voting
requirement
of
Section
15(c)
of
the
1940
Act
provided
by
the
U.S.
Securities
and
Exchange
Commission
(the
“SEC”).
During
the
course
of
a
year,
the
Trustees
receive
a
wide
variety
of
materials
regarding,
among
other
things,
the
investment
performance
of
the
Funds,
sales
and
redemptions
of
the
Funds’
shares,
management
of
the
Funds
and
other
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
and
compliance
with
applicable
regulatory
requirements.
In
preparation
for
the
annual
review,
the
Trustees,
with
the
advice
and
assistance
of
their
independent
counsel
(“Independent
Counsel”),
also
requested
and
considered
(1)
information
and
reports
prepared
by
RIM
relating
to
the
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
to
the
Funds;
(2)
information
and
reports
prepared
by
RIM
relating
to
the
profitability
of
each
Fund
to
RIM
(and
its
affiliates);
and
(3)
information
received
from
an
independent,
nationally
recognized
provider
of
investment
company
information
comparing
the
performance
of
the
Funds
and
their
respective
operating
expenses
over
various
periods
of
time
with
other
peer
funds
not
managed
by
RIM,
believed
by
the
provider
to
be
generally
comparable
to
the
Funds
(the
“Third-Party
Information”).
In
the
case
of
each
Fund,
its
other
peer
funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Comparable
Funds,”
and,
with
the
Fund,
such
Comparable
Funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Performance
Universe”
in
the
case
of
performance
comparisons
and
the
Fund’s
“Expense
Universe”
in
the
case
of
operating
expense
comparisons.
The
foregoing
and
other
information
received
by
the
Board
in
connection
with
its
evaluations
of
the
Agreements
are
collectively
called
the
“Agreement
Evaluation
Information.”
The
Trustees’
evaluations
also
reflected
the
knowledge
and
familiarity
gained
as
Board
members
of
the
Funds
and
the
other
RIM-managed
funds
for
which
the
Board
has
supervisory
responsibility
(“Other
RIM
Funds”)
with
respect
to
services
provided
by
RIM,
RIM’s
affiliates
and
each
Money
Manager.
The
Trustees
received
a
memorandum
from
counsel
to
the
Funds
(“Fund
Counsel”)
discussing
the
legal
standards
for
their
consideration
of
the
continuations
of
the
Agreements,
and
separately
received
a
memorandum
regarding
their
responsibilities
from
their
Independent
Counsel.
On
April
27,
2020,
the
Trustees
met
privately
by
video
conference
with
Independent
Counsel
to
discuss
the
Agreement
Evaluation
Information
received
to
that
date.
At
a
meeting
held
on
April
28,
2020
(the
“Agreement
Information
Review
Meeting”),
the
Trustees,
in
preparation
for
the
Agreement
Evaluation
Meeting,
met
by
video
conference
in
an
executive
session
with
a
representative
of
TA
Associates
Management,
L.P.
(“TA
Associates”),
at
which
Independent
Counsel
and
Fund
Counsel
and,
for
a
portion
of
the
session,
the
Chief
Financial
Officer
(“CFO”)
and
Chief
Operating
Officer
(“COO”)
of
RIM’s
parent
company
were
present;
met
by
video
conference
with
representatives
of
RIM;
and
then
the
Trustees
met
by
video
conference
in
a
private
session
with
Independent
Counsel
at
which
no
representatives
of
RIM
or
the
Funds’
management
were
present
to
further
review
and
discuss
the
Agreement
Evaluation
Information
received
to
that
date.
On
the
basis
of
that
review,
the
Trustees
communicated
additional
questions
and
requested
additional
Agreement
Evaluation
Information.
Certain
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
was
received
on
May
7,
2020.
On
May
12,
2020,
the
Trustees
met
by
video
conference
in
private
session
with
Independent
Counsel
to
further
discuss
the
Agreement
Evaluation
Information
and
review
the
additional
Agreement
Evaluation
Information.
On
May
13,
2020,
the
Board
Chair
met
by
conference
telephone
call
with
representatives
of
management
and
requested
clarifications
and
confirmations
of
certain
of
the
previously
provided
additional
Agreement
Evaluation
Information
and
those
clarifications
and
confirmations
were
addressed
at
the
Agreement
Evaluation
Meeting.
At
the
Agreement
Evaluation
Meeting,
the
Trustees
again
met
by
video
conference
in
a
private
session
with
Independent
Counsel
to
review
the
additional
or
revised
Agreement
Evaluation
Information
received
to
that
date.
At
the
Agreement
Evaluation
Meeting,
the
Trustees
considered
the
proposed
continuance
of
the
Agreements
with
RIM,
Fund
management,
Independent
Counsel
and
Fund
Counsel.
The
Board
considered
that
the
Agreement
Evaluation
Information
and
presentations
made
by
RIM
at
the
Agreement
Evaluation
Meeting
as
part
of
this
review
encompassed
the
Funds
and
all
Other
RIM
Funds.
Information
received
by
the
Board
prior
to
and
at
the
Agreement
Information
Review
Meeting,
the
Agreement
Evaluation
Meeting,
the
Agreement
Approval
Meeting
and
other
meetings
identified
above
is
included
in
the
Agreement
Evaluation
Information.
Prior
to
voting
at
the
Agreement
Approval
Meeting,
the
Trustees
met
in
private
session
with
Independent
Counsel
to
consider
Agreement
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
166
Basis
for
Approval
of
Investment
Advisory
Agreement
Evaluation
Information
received
from
RIM
and
management
at
and
prior
to
the
Agreement
Approval
Meeting.
The
discussion
below
reflects
all
of
these
reviews.
In
evaluating
the
Agreements,
the
Board
considered
that
each
of
the
Funds
employs
a
manager-of-managers
method
of
investment
and
RIM’s
past
expressed
belief
that
such
Funds,
in
employing
a
manager-of-managers
method
of
investment,
operate
in
a
manner
that
is
different
from
most
other
investment
companies.
In
the
case
of
most
other
investment
companies,
an
investment
advisory
fee
is
paid
by
the
investment
company
to
its
adviser
which,
in
turn,
employs
and
compensates
individual
portfolio
managers
to
make
specific
securities
selections
consistent
with
the
adviser’s
style
and
investment
philosophy.
RIM,
however,
has
engaged
multiple
unaffiliated
Money
Managers.
RIM
is
responsible
for
paying
fees
to
the
Money
Managers
(“Money
Manager
Fees”)
out
of
the
fees
paid
by
the
Funds
to
RIM
for
its
services
under
the
RIM
Agreement
(the
“Advisory
Fee”).
A
Money
Manager
may
have
(1)
a
discretionary
asset
management
assignment
pursuant
to
which
it
is
allocated
a
portion
of
a
Fund’s
assets
to
manage
directly
in
its
discretion;
(2)
a
non-
discretionary
assignment
pursuant
to
which
it
provides
a
model
portfolio
to
RIM
representing
its
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
a
Fund;
or
(3)
both
a
discretionary
and
a
non-discretionary
assignment.
Money
Manager
Fees
for
a
non-discretionary
assignment
may
be
the
same
as,
or
lower
than,
the
fees
would
be
for
a
discretionary
assignment
with
the
same
Money
Manager.
The
Board
considered
that
RIM
(rather
than
any
Money
Manager)
is
responsible
under
the
RIM
Agreement
for
determining,
implementing
and
maintaining
the
investment
program
for
each
Fund.
The
Board
considered
that,
although
RIM
traditionally
has
managed
Fund
exposures
through
the
selection
of
and
allocations
to
Money
Manager
strategies,
innovations
in
RIM
portfolio
management
techniques
together
with
evolutions
in
available
technology,
tools
and
analytics
have
resulted
in
certain
changes
in
RIM’s
approach
to
its
Fund
investment
advisory
services.
In
this
regard,
assets
of
each
Fund
continue
to
be
allocated
among
RIM
and
the
multiple
Money
Manager
strategies
selected
by
RIM
for
that
Fund.
RIM
may
change
a
Fund’s
asset
allocation
to
a
Money
Manager
at
any
time,
including
by
allocating
no
Fund
assets
to
one
or
more
Money
Manager
strategies.
In
addition,
RIM
continues
to
manage
the
investment
of
each
Fund’s
cash
and
portions
of
a
Fund
during
transitions
between
discretionary
Money
Managers.
RIM
also
continues
to
manage
directly
any
portion
of
each
Fund’s
assets
that
RIM
determines
not
to
allocate
to
Money
Manager
strategies.
Most
Funds
usually,
but
not
always,
pursue
a
strategy
to
be
fully
invested
by
exposing
all
or
a
portion
of
their
cash
to
the
performance
of
appropriate
markets
by
purchasing
equity
securities,
fixed
income
securities
and/or
derivatives,
which
typically
include
futures
contracts.
This
cash
“equitization”
strategy
is
managed
by
RIM.
With
respect
to
the
portion
of
a
Fund
that
RIM
manages
based
upon
non-discretionary
Money
Manager
model
portfolios,
RIM
constructs
a
portfolio
that
represents
the
aggregation
of
the
model
portfolios
based
upon
RIM’s
allocation
to
each
Money
Manager’s
strategy
through
an
“enhanced
portfolio
implementation,”
or
“emulation,”
process
designed
to
capture
return
streams
of
multiple
managers
in
a
centralized
portfolio.
RIM
then
implements
the
portfolio
consistent
with
the
aggregation
of
the
model
portfolios,
but
may
deviate
from
such
aggregation
for
the
purposes
of
exposure
and
transaction
cost
management.
RIM
noted
that
the
Funds
may
benefit
from
emulation
through,
among
other
things,
improved
incremental
returns
over
time
due
to
lower
aggregate
transaction
costs
and
turnover
from
reduced
trading
volumes,
and
the
potential
for
additional
commission
recapture.
In
all
cases,
Fund
assets
are
managed
directly
by
RIM
pursuant
to
authority
provided
by
the
RIM
Agreement.
The
Board
noted
the
variety
and
complexity
of
investment
advisory
services
that
RIM
provides
to
the
Funds
under
the
RIM
Agreement.
RIM
is
responsible
for
selecting
(subject
to
Board
approval),
overseeing
and
evaluating
the
performance
results
of
the
Money
Managers
for
each
Fund
and
for
actively
managing
allocations
and
reallocations
of
its
assets
among
the
Money
Manager
strategies
and
RIM
itself.
Each
discretionary
Money
Manager
for
a
Fund
in
effect
performs
the
function
of
an
individual
portfolio
manager
who
is
responsible
for
researching,
selecting
and
trading
portfolio
securities
for
the
portion
of
the
Fund
assigned
to
it
by
RIM
in
accordance
with
the
Fund’s
applicable
investment
objective,
policies
and
restrictions,
any
specific
guidelines
placed
by
RIM
upon
their
selection
of
portfolio
securities
and
the
Money
Manager’s
specified
role
in
a
Fund.
A
Money
Manager’s
primary
role
is
to
pursue
a
particular
investment
strategy
that
has
been
selected
and
assigned
to
it
by
RIM
through
sector
and
security
selection
and
risk
control
measures
in
a
manner
that
is
consistent
with
its
RIM-assigned
guidelines.
The
Money
Managers
operate
subject
to
the
oversight
of,
and
instructions
from,
RIM.
For
each
Fund,
RIM
is
responsible
for,
among
other
things,
providing
each
Money
Manager
with
the
investment
guidelines
and
policies
for
the
Fund
and
any
specific
investment
restrictions;
monitoring
the
performance
of
each
Money
Manager
and
Fund;
generally
supervising
compliance
by
the
discretionary
Money
Managers
and,
as
applicable,
the
non-discretionary
Money
Managers
with
each
Fund’s
investment
objective
and
policies;
with
respect
to
Funds
with
non-discretionary
Money
Managers,
purchasing
and
selling
securities
for
the
Funds
based
on
model
portfolios
representing
the
investment
recommendations
of
the
non-discretionary
Money
Managers;
managing
Fund
assets
that
are
not
allocated
to
Money
Manager
strategies;
managing
the
Funds’
cash
balances;
and
recommending
at
least
annually
to
the
Board
whether
portfolio
management
contracts
should
be
renewed,
modified
or
terminated.
In
addition
to
its
annual
recommendation
as
to
the
renewal,
modification
or
termination
of
portfolio
management
contracts,
RIM
is
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
167
responsible
for
recommending
to
the
Board
additions
of
new
Money
Managers
or
terminations
or
replacements
of
existing
Money
Managers
at
any
time
when,
based
on
RIM’s
research
and
ongoing
review
and
analysis,
such
actions
are,
in
RIM’s
judgment,
appropriate.
RIM
may
impose
specific
investment
or
strategy
parameters
from
time
to
time
on
each
Money
Manager
intended
to
capitalize
on
the
strengths
of
that
Money
Manager
or
to
coordinate
the
investment
activities
of
Money
Managers
for
the
Fund
in
a
complementary
manner.
Therefore,
RIM’s
selection
of
Money
Managers
is
made
not
only
on
the
basis
of
performance
considerations
but
also
on
the
basis
of
other
factors,
including
anticipated
compatibility
with
other
Money
Managers
in
the
same
Fund.
In
light
of
the
foregoing,
the
overall
performance
of
each
Fund
has
reflected,
in
great
part,
the
performance
of
RIM
in
designing
the
Fund’s
investment
program,
structuring
the
Fund,
selecting
effective
Money
Managers,
and
allocating
assets
among
the
Money
Manager
strategies
and
RIM
in
a
manner
designed
to
achieve
the
investment
objectives
of
the
Fund.
In
the
Agreement
Evaluation
Information,
RIM
noted
the
broad
array
of
investment
management
services
provided
to
the
Funds
by
RIM
compared
to
the
relatively
narrow
portfolio
management
services
provided
to
the
Funds
by
Money
Managers.
RIM
has
advised
the
Board
that
its
portfolio
construction
process
is
investment
led
and
designed
to
be
conducted
in
a
manner
that
is
consistent
with
its
fiduciary
duties.
The
objective
of
RIM’s
portfolio
construction
is
to
meet
a
portfolio’s
investment
objective
and
established
excess
return
target.
In
the
Agreement
Evaluation
Information,
RIM
noted
that
while
it
has
general
goals
for
Money
Manager
Fees
in
the
aggregate
globally,
there
are
no
specific
fee
targets
that
are
established
for
individual
portfolios,
which
includes
each
of
the
Funds.
In
the
Agreement
Evaluation
Information,
RIM
advised
the
Board
that
Money
Manager
Fees,
in
the
aggregate,
must
allow
RIM
to
remain
a
going
concern
with
sufficient
resources
to
provide
required
services
to
the
Funds
and
to
earn
a
reasonable
profit.
RIM
advised
the
Board
that
RIM
portfolio
managers
utilize
a
number
of
tools
in
the
portfolio
construction
process
in
order
to
meet
a
Fund’s
objective
taking
into
account
Money
Manager
Fees.
These
tools
include,
among
others,
Money
Manager
selection,
Money
Manager
allocation,
Money
Manager
Fee
negotiations,
guideline
customization
and
Direct
Management
Services
(as
defined
below).
The
Board
considered
that
the
prospectuses
for
the
Funds
and
other
public
disclosures
have
emphasized,
and
continue
to
emphasize,
to
investors
RIM’s
role
as
the
principal
investment
manager
for
each
such
Fund,
rather
than
the
investment
selection
or
recommendation
role
of
the
Money
Managers,
and
describe
the
manner
in
which
the
Funds
operate
so
that
investors
may
take
that
information
into
account
when
deciding
to
purchase
shares
of
any
Fund.
The
Board
further
considered
that
Fund
investors
in
pursuing
their
investment
goals
and
objectives
likely
purchased
their
shares
on
the
basis
of
this
information
and
RIM’s
reputation
for
and
performance
record
in
managing
the
Funds’
manager-of-managers
structure.
The
Board
also
considered
the
demands
and
complexity
of
managing
the
Funds
pursuant
to
the
manager-of-managers
structure,
the
special
expertise
of
RIM
with
respect
to
the
manager-of-managers
structure
of
the
Funds
and
the
possibility
that,
at
the
current
expense
ratio
of
each
Fund,
there
might
be
no
acceptable
alternative
investment
managers
to
replace
RIM
on
comparable
terms
given
the
need
to
continue
the
manager-of-managers
strategy
of
such
Fund
selected
by
shareholders
in
purchasing
their
shares.
In
addition
to
these
general
factors
relating
to
the
manager-of-managers
structure
of
the
Funds,
the
Trustees
considered,
with
respect
to
each
Fund,
various
specific
factors
in
evaluating
renewal
of
the
RIM
Agreement,
including
the
following:
1.
The
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
by
RIM;
2.
The
Advisory
Fee
paid
by
the
Fund
to
RIM
and
the
fact
that
it
encompasses
all
investment
advisory
fees
paid
by
the
Fund,
including
the
fact
that
RIM
pays
all
Money
Manager
Fees
out
of
its
Advisory
Fee;
3.
Information
provided
by
RIM
as
to
other
fees
and
benefits
received
by
RIM
or
its
affiliates
in
connection
with
the
Fund,
including
any
administrative
or
transfer
agent
fees
and
any
fees
received
for
management
or
administration
of
uninvested
cash
and
securities
lending
cash
collateral,
soft
dollar
arrangements
and
commissions
in
connection
with
portfolio
securities
and
foreign
exchange
transactions;
4.
Information
provided
by
RIM
as
to
expenses
incurred
by
the
Fund;
5.
Information
provided
by
RIM
as
to
the
profits
that
RIM
derives
from
its
mutual
fund
operations
generally
and
from
the
Fund;
and
6.
Information
provided
by
RIM
concerning
economies
of
scale
and
whether
any
scale
economies
are
adequately
shared
with
the
Fund.
In
connection
with
the
Trustees’
consideration
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
which
are
expected
to
be
provided,
to
the
Funds,
including
Fund
portfolio
management
services,
the
Chief
Investment
Officer
of
RIM
and
the
Funds,
and
senior
representatives
of
Russell
Investments
(as
defined
below),
discussed
with
the
Board
certain
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
168
Basis
for
Approval
of
Investment
Advisory
Agreement
enhancements
made
to
the
investment
management
program
for
the
Funds
to
seek
to
increase
the
probability
of
excess
returns.
The
Board
also
discussed
the
Funds’
compliance
program
with
the
Funds’
Chief
Compliance
Officer
(“CCO”),
including
certain
items
reported
in
the
annual
report
of
the
CCO
required
under
Rule
38a-1
of
the
1940
Act
(the
“Annual
CCO
Report”)
and
the
status
of
the
goals
for
the
past
year
related
to
the
compliance
program
that
the
CCO
identified
in
connection
with
last
year’s
Annual
CCO
Report.
The
Annual
CCO
Report
also
included
information
on
the
progress
made
with
respect
to
various
compliance,
operations
and
technology
initiatives
previously
discussed
with
the
Board.
The
CCO
discussed
with
the
Board,
and
the
Board
noted,
enhancements
made
to
the
compliance
programs
of
RIM
and
the
Funds
over
the
past
year.
The
CCO
advised
the
Board
that
the
Funds’
compliance
program
meets
the
standards
of
Rule
38a-1
under
1940
Act
and
that,
as
required
by
Rule
38a-1
under
the
1940
Act,
RIM
has
adopted
policies
and
procedures
that
are
reasonably
designed
to
prevent
violation
of
the
Federal
Securities
Laws
(as
such
term
is
defined
in
the
1940
Act)
with
respect
to
the
services
RIM
provides
to
the
Funds.
The
CCO
and
RIM
senior
management
discussed
the
impact
of
the
COVID-19
crisis
on
the
operations
and
compliance
programs
of
RIM,
the
Money
Managers
and
the
Funds’
other
significant
service
providers
and
the
Trustees
received
and
considered
confirmation
from
the
CCO
and
RIM
senior
management
that
there
was
no
anticipated
diminution
in
the
nature,
extent
and
quality
of
services
to
be
provided
by
each
of
these
service
providers
under
their
respective
agreements
with
the
Funds
as
a
result
of
the
COVID-19
crisis.
Since
June
1,
2016,
RIM
has
been
an
indirect
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company
through
which
the
limited
partners
of
certain
private
equity
funds
affiliated
with
TA
Associates
indirectly
have
a
majority
ownership
interest
through
alternative
investment
vehicles
and
the
limited
partners
of
certain
private
equity
funds
affiliated
with
Reverence
Capital
Partners,
L.P.
(“Reverence
Capital”)
indirectly
have
a
significant
minority
controlling
ownership
interest
through
certain
Reverence
Capital
funds
and
alternative
investment
vehicles
in
RIM
and
its
affiliates
(“Russell
Investments”).
In
connection
with
the
Board’s
initial
approval
of
the
RIM
Agreement,
TA
Associates
advised
the
Board
of
its
plans
ultimately
to
effect
a
sale
or
other
disposition
of
its
ownership
interest
in
Russell
Investments.
Any
such
future
transaction
(“Transaction”)
could
cause
a
change
of
control
of
RIM
resulting,
among
other
things,
in
an
assignment
and
termination
of
the
RIM
Agreement,
as
required
by
the
1940
Act,
and
by
the
terms
and
conditions
of
the
RIM
Agreement.
In
the
event
of
a
Transaction,
the
Board
would
be
required
to
consider
the
approval
of
the
terms
and
conditions
of
a
replacement
agreement
(“Successor
Agreement”)
for
the
RIM
Agreement
and
thereafter
to
submit
the
Successor
Agreement
to
each
Fund’s
shareholders
for
approval,
as
required
by
the
1940
Act.
During
the
executive
session
with
a
representative
of
TA
Associates
held
in
connection
with
the
Agreement
Information
Review
Meeting,
among
other
things,
the
status
of
TA
Associates’
indirect
investment
in
RIM
and
RIM’s
access
to
sufficient
resources
to
support
its
activities
in
respect
of
the
Funds,
including
in
light
of
the
current
market
environment
and
the
COVID-19
crisis,
were
discussed.
The
Board
was
advised
that
there
was
no
change
in
TA
Associates’
plans
regarding
its
ownership
interest
in
Russell
Investments
from
those
plans
previously
reported
to
the
Board
and
of
TA
Associates’
commitment
to
continue
to
support
the
same
level
of
services
currently
being
provided
by
RIM
and
its
affiliates
to
the
Funds.
As
noted
above,
RIM,
in
addition
to
managing
the
investment
of
each
Fund’s
cash,
directly
manages
a
portion
(which
may
represent
a
significant
portion)
of
the
Funds
pursuant
to
the
RIM
Agreement,
with
the
actual
allocation
of
Fund
assets
among
Money
Manager
strategies
and
RIM
being
determined
from
time
to
time
by
the
RIM
portfolio
manager(s).
The
nature
and
scope
of
RIM’s
direct
management
of
Fund
assets
has
evolved
over
the
past
several
years.
RIM
utilizes
quantitative
and/or
rules-based
processes
and
qualitative
analysis
to
assess
Fund
characteristics
and
invests
in
securities
and
instruments
which
provide
the
desired
exposures
(such
as
low
volatility,
momentum,
value,
growth,
quality,
capitalization
size,
industry,
sector,
region,
currency,
credit
or
mortgage
exposure,
country
risk,
yield
curve
positioning
or
interest
rates).
RIM
may
utilize
tools
such
as
“optimization,”
which
involves
the
analysis
of
tradeoffs
between
various
risk
and
return
factors
as
well
as
turnover
and
transaction
costs,
in
order
to
estimate
optimal
portfolio
positioning.
RIM
may
use
strategies
based
on
indexes,
including
optimized
index
sampling
(strategies
that
seek
to
purchase
a
sampling
of
securities
using
optimization
and
risk
models)
and/or
index
replication.
For
certain
Funds,
RIM
may
invest
in
derivative
instruments
and
may
use
derivatives
to
take
both
long
and
short
positions.
RIM’s
direct
management
of
assets
for
these
purposes
is
hereinafter
referred
to
as
the
“Direct
Management
Services.”
The
Board
has
been
advised
that,
where
appropriate
in
its
judgment,
RIM
intends
to
continue
exploring
the
possible
expansion
of
its
Direct
Management
Services
whereby
larger
portions
of
certain
Funds
may
be
managed
directly
by
RIM
pursuant
to
the
Direct
Management
Services.
According
to
RIM,
its
portfolio
managers
combine
Money
Manager
strategies
and
RIM’s
Direct
Management
Services
for
the
Funds
and
precisely
align
Fund
exposures
with
RIM’s
preferred
positioning.
RIM’s
Direct
Management
Services
are
customized
portfolios
directly
managed
by
RIM
for
use
within
the
total
portfolio
of
a
Fund.
These
strategies
are
used
in
conjunction
with
allocations
to
Money
Manager
strategies
to
fully
reflect
RIM’s
strategic
and
dynamic
insights
with
integrated
liquidity
and
risk
management.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
169
The
Board
considered
that
RIM
is
not
required
to
pay
Money
Manager
Fees
to
any
Money
Managers
with
respect
to
assets
for
which
it
provides
Direct
Management
Services
and
that
the
profits
derived
by
RIM
generally
and
from
the
Funds
consequently
may
be
increased,
although
RIM
noted
that
it
may
incur
additional
costs
in
providing
Direct
Management
Services.
RIM
advised
the
Board
that
allocations,
or
increased
allocations,
of
Fund
assets
to
Direct
Management
Services,
together
with
Money
Manager
selection,
allocations
among
Money
Manager
strategies,
renegotiation
of
Money
Manager
Fees
and
changes
in
existing
Money
Manager
assignments
from
discretionary
to
non-discretionary
assignments
where
there
is
a
related
Money
Manager
Fee
reduction
may
reduce
its
costs
of
providing
investment
advisory
services
to
the
Funds,
which
would
benefit
RIM.
The
Board
considered
RIM’s
advice
that
any
such
benefit,
including
any
increased
profits
to
RIM,
ultimately
may
be
partially
offset
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Funds
and
any
costs
of
incremental
investments
or
increased
cost
allocations
that
RIM
may
incur
to
support
Direct
Management
Services.
The
Board
also
considered
information
provided
by
RIM
as
to
the
potential
benefits
of
the
Direct
Management
Services
to
Funds;
and
the
fact
that
the
aggregate
Advisory
Fees
paid
by
the
Funds
are
not
increased
as
a
result
of
RIM’s
direct
management
of
Fund
assets
as
part
of
the
Direct
Management
Services
or
otherwise.
The
Board
noted
that
changes
in
the
allocation
of
assets
among
Money
Manager
strategies
or
to
Direct
Management
Services
may
result
directly
in
higher
related
costs
to
affected
Funds,
including
higher
brokerage
commissions
and
other
transaction
costs,
a
portion
of
which
is
paid
to
RIM’s
affiliated
broker
in
connection
with
execution
of
portfolio
transactions
in
connection
with
such
changes.
The
Agreement
Evaluation
Information
outlined
various
changes
that
have
been
implemented
in
the
investment
program
for
the
Funds
in
recent
years,
and
described
additional
current
and
potential
changes,
and
the
impact
of
such
changes,
to
the
investment
advisory
services
provided
to
the
Funds
by
RIM,
which
the
Trustees
took
into
account
in
their
contract
renewal
deliberations,
including
the
following:
•
RIM
advised
the
Board
that
it
reviewed
certain
key
tenets
of
its
investment
approach
and
took
certain
measures
to
enhance
the
process
with
the
goal
to
improve
risk
adjusted
performance
over
a
market
cycle.
•
The
Direct
Management
Services
described
above.
•
RIM
advised
the
Board
that
most
remaining
discretionary
equity
Money
Managers
were
converted
to
non-discretionary
assignments,
thereby
implementing
emulation
for
most
Money
Manager
equity
assignments.
The
Board
considered
the
potential
impacts
described
in
the
Agreement
Evaluation
Information,
both
positive
and
negative,
on
the
Funds
of
emulation.
RIM
noted
that,
in
implementing
emulation
for
Funds,
it
assumes
various
risks,
including
trade
error
risk
as
it
takes
over
responsibility
for
trading.
RIM
generally
effects
Fund
portfolio
transactions
through
an
affiliated
broker
that
receives
commissions
for
effecting
a
portion
of
these
transactions.
According
to
RIM,
the
Funds
pay
the
same
commission
rates
regardless
of
whether
the
affiliate
receives
any
portion
of
the
commission.
•
RIM
advised
the
Board
that,
over
the
course
of
2019
and
in
prior
years,
it
had
reduced
the
number
of
Money
Managers
for
certain
Funds,
in
part
to
seek
more
concentrated
return
drivers.
RIM
also
advised
the
Board
that
allocations
to
Direct
Management
Services
for
certain
Funds
were
increased
to
accommodate
the
need
for
additional
overall
portfolio
exposure
management
that
may
arise
from
more
concentrated
Money
Manager
lineups.
Additionally,
RIM
advised
the
Board
that,
in
order
to
preserve
flexibility
and
to
manage
risks
and
volatility
associated
with
Funds
having
manager
lineups
with
fewer
Money
Managers,
and
consistent
with
the
terms
of
the
manager-of-managers
exemptive
order,
RIM
created
Money
Manager
“bench”
lineups
for
certain
Funds,
whereby
those
Funds
have
Board-approved
portfolio
management
contracts
with
Money
Managers
that
are
not
funded
(i.e.,
have
an
asset
allocation
of
zero).
In
the
Agreement
Evaluation
Information,
RIM
advised
the
Board
that
the
opportunity
to
decrease
a
Money
Manager’s
allocation
to
zero,
but
not
terminate
the
Money
Manager,
allows
RIM
to
potentially
realize
gains
from
strategies
that
may
have
been
overly
rewarded
in
the
marketplace
over
the
short
to
medium
term,
or
provide
the
opportunity
to
retain
capacity
with
a
Money
Manager.
The
Board
noted
that
RIM
does
not
believe
there
are
any
detriments
to
the
Funds
or
RIM
from
the
use
of
a
manager
bench.
RIM
advised
the
Board
that,
going
forward,
RIM
may
add
managers
to
a
Fund
with
an
existing
manager
bench
or
create
manager
bench
lineups
for
additional
Funds.
•
RIM
has
renegotiated
fees
with
certain
Money
Managers
to
lower
levels
and
advised
the
Board
that
it
will
continue
to
assess
opportunities
for
Money
Manager
Fee
reductions
in
the
future.
Because
Money
Manager
Fees
are
paid
by
RIM
out
of
its
Advisory
Fee
from
the
Funds,
the
foregoing
may
benefit
RIM
in
the
form
of
savings
to
RIM
from
reduced
Money
Manager
Fees.
RIM
noted
that
such
benefits
may
be
offset
partially
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Funds,
and
any
costs
of
incremental
investments
or
increased
cost
allocations
that
RIM
may
incur
to
support
Direct
Management
Services.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
170
Basis
for
Approval
of
Investment
Advisory
Agreement
In
evaluating
the
Funds’
Advisory
Fees,
the
Board
considered
that,
in
the
Agreement
Evaluation
Information
and
at
past
meetings,
RIM
noted
differences
between
the
investment
strategies
of
certain
Funds
and
their
respective
Comparable
Funds
in
pursuing
their
investment
objectives.
The
Third-Party
Information
included,
among
other
things,
comparisons
of
the
Funds’
Advisory
Fees
with
the
investment
advisory
fees
of
their
Comparable
Funds
on
an
actual
basis
(i.e.,
giving
effect
to
any
fee
waivers
implemented
by
the
managers
of
such
Fund’s
Comparable
Funds).
The
Third-Party
Information,
among
other
things,
showed
that
the
U.S.
Strategic
Equity
Fund,
U.S.
Small
Cap
Equity
Fund,
International
Developed
Markets
Fund
and
Strategic
Bond
Fund
each
had
an
Advisory
Fee
which,
compared
with
the
investment
advisory
fees
of
its
respective
Comparable
Funds
on
an
actual
basis,
was
ranked
in
the
fifth
quintile
of
its
Expense
Universe
for
that
expense
component.
The
Advisory
Fee
for
the
Global
Real
Estate
Securities
Fund
ranked
in
the
fourth
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
funds
with
the
lowest
investment
advisory
fees
of
its
comparable
Fund
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
investment
advisory
fees
among
the
Expense
Universe
funds.
The
comparisons
were
based
upon
the
latest
fiscal
years
for
the
Expense
Universe
funds.
The
Board
considered
RIM’s
explanation
of
the
reasons
for
each
Fund’s
actual
Advisory
Fee
rankings.
RIM
expressed
its
belief
that
each
Fund’s
Advisory
Fee
was
fair
and
reasonable
notwithstanding
the
Third-Party
Information
comparisons
based
on
the
Agreement
Evaluation
Information.
Among
other
things,
RIM
noted
that
meaningful
comparisons
of
investment
advisory
fees
between
funds
affiliated
with
insurance
companies
issuing
variable
annuity
and
life
policies
and
non-affiliated
funds,
such
as
the
Funds,
are
difficult
as
insurance
companies
may
allocate
fees
between
the
insurance
contracts
and
their
underlying
funds.
The
Board
considered
that
the
total
expenses
for
the
Strategic
Bond
Fund
and
Global
Real
Estate
Securities
Fund
ranked
in
the
second
quintile
of
its
Expense
Universe.
The
Board
further
considered
that
the
total
expenses
for
the
U.S.
Strategic
Equity
Fund,
U.S.
Small
Cap
Equity
Fund
and
International
Developed
Markets
Fund
had
a
small
variance
to
the
third
quintile
of
its
Expense
Universe.
The
Board
determined
that
it
would
continue
to
monitor
the
Funds’
Advisory
Fees
against
the
Funds’
Comparable
Funds’
investment
advisory
fees.
In
discussing
the
Funds’
Advisory
Fees
generally,
RIM
noted,
among
other
things,
that
its
Advisory
Fees
for
the
Funds
encompass
services
that
are
typical
to
services
provided
by
investment
advisers
to
the
Funds’
Comparable
Funds,
as
well
as
unique
services
that
are
distinctly
different
from
those
provided
by
investment
advisers
to
the
Funds’
Comparable
Funds,
such
as
cash
equitization
and
transition
management
efforts
that
enable
efficient
and
cost-effective
asset
transition
events.
RIM
also
advised
the
Board
that
its
profitability
generally
and
from
its
relationships
with
the
Funds
declined
in
2019,
and
its
pre-
tax
“margins”
in
providing
investment
advisory
services
to
the
Funds
ranked
below
the
median
of
the
margins
of
public
investment
management
company
peers
based
on
a
survey
conducted
in
2018.
RIM
has
expressed
its
view
that
Advisory
Fees
should
also
be
considered
in
the
context
of
a
Fund’s
total
expense
ratio
to
obtain
a
complete
picture.
The
Board
considers
each
Fund’s
Advisory
Fee
on
both
a
standalone
basis
and
in
the
context
of
the
Fund’s
total
expense
ratio.
The
Board
has
engaged,
and
continues
to
engage,
in
discussions
with
RIM
to
identify
opportunities
for
improving
the
total
expense
comparisons
for
certain
Funds
relative
to
their
respective
Comparable
Funds.
Based
upon
information
provided
by
RIM,
the
Board
considered
for
each
Fund
whether
economies
of
scale
have
been
realized
and
whether
the
Advisory
Fee
for
such
Fund
appropriately
reflects
or
should
be
revised
to
reflect
any
such
economies.
The
Board
considered,
among
other
things,
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Funds
as
well
as
net
Fund
redemptions
or
purchases
in
recent
years.
The
Funds
are
distributed
exclusively
through
variable
annuity
and
variable
life
insurance
contracts
issued
by
insurance
companies.
Currently,
the
Funds
are
made
available
to
holders
of
such
insurance
policies
(“Insurance
Contract
Holders”)
by
a
few
insurance
companies.
The
Funds
are
primarily
distributed
through,
and
their
assets
are
primarily
attributed
to,
The
Northwestern
Mutual
Life
Insurance
Company
(“Northwestern
Mutual”).
In
November
2018,
Northwestern
Mutual
discontinued
sales
of
the
International
Developed
Markets
Fund
to
new
Insurance
Contract
Holders
through
its
advisory
channel
but
this
Fund
is
still
available
to
new
and
existing
Insurance
Contract
Holders
through
Northwestern
Mutual’s
brokerage
channel.
RIM
expressed
its
belief
that
Northwestern
Mutual
is
committed
to
the
Funds
and
RIM
does
not
believe
Northwestern
Mutual
intends
to
discontinue
sales
of
the
other
Funds
to
its
Insurance
Contract
Holders
through
its
advisory
channel.
However,
the
Board
has
received
no
direct
assurances
in
this
regard
from
Northwestern
Mutual.
If
Northwestern
Mutual
were
to
discontinue
its
participation
in
the
Funds,
the
Board
considered
that
it
is
unlikely
that
the
Funds
would
remain
viable.
RIM
advised
the
Board
that
its
near-term
business
plan
is
to
retain
existing
RIF
complex
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
171
assets
with
intermediate-term
plans
centering
on
opportunistic
business
development
efforts
related
to
RIF
Fund
placement
in
the
insurance
channel.
RIM
previously
expressed
its
belief
that
the
Funds
will
remain
viable
in
the
near
term,
and
the
Board
was
not
advised
of
any
change
in
RIM’s
belief
in
this
regard.
The
Board
considered,
among
other
things,
the
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
variable
annuity
and
variable
life
insurance
policyholders.
The
Board
also
considered
that
fees
payable
to
RIM
or
its
affiliates
by
institutional
clients
with
investment
objectives
similar
to
those
of
the
Funds,
in
some
cases,
are
lower,
and
may
be
substantially
lower,
than
the
rates
paid
by
the
Funds
and
Other
RIM
Funds.
The
Trustees
considered
the
differences
in
the
nature
and
scope
of
services
RIM
provides
to
institutional
clients
and
the
Funds.
RIM
explained,
among
other
things,
that
institutional
products
have
fewer
compliance,
administrative,
client
servicing/communication
and
other
needs
than
the
Funds.
RIM
also
noted
that
due
to
the
number
and
nature
of
investors,
along
with
their
varied
needs
for
liquidity,
there
is
more
portfolio
liquidity
management
and
cash
flow
management
required
for
the
Funds
than
for
RIM’s
institutional
clients,
where
assets
are
relatively
stable.
In
addition,
RIM
noted
that
the
Funds
are
subject
to
heightened
regulatory
requirements
relative
to
institutional
clients.
Accordingly,
the
Trustees
concluded
that
the
services
provided
to
the
Funds
are
sufficiently
different
from
the
services
provided
to
the
other
clients
that
comparisons
are
not
probative
and
should
not
be
given
significant
weight.
With
respect
to
the
Funds’
total
expenses,
the
Third-Party
Information
showed
that
the
total
expenses
for
each
of
the
U.S.
Strategic
Equity
Fund,
U.S.
Small
Cap
Equity
Fund
and
International
Developed
Markets
Fund
were
ranked
in
the
fourth
quintile
of
its
Expense
Universe,
and
the
total
expenses
for
each
of
the
other
Funds
were
ranked
in
the
second
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
the
funds
with
the
lowest
total
expenses
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
total
expenses
among
the
Expense
Universe
funds.
In
the
case
of
many
of
the
aforementioned
Funds,
a
significant
factor
in
the
Fund’s
total
expense
ranking
was
the
Fund’s
Advisory
Fee
when
compared
to
the
investment
advisory
fees
of
other
Comparable
Funds.
With
respect
to
each
Fund
with
total
expenses
ranked
in
the
fourth
quintile
of
its
Expense
Universe,
RIM
expressed
its
belief
that
the
Fund’s
total
expense
ratio
was
fair
and
reasonable
notwithstanding
the
Third-Party
Information
comparisons
based
on
the
Agreement
Evaluation
Information.
The
Board
considered
that
the
total
expenses
for
each
of
the
U.S.
Strategic
Equity
Fund,
U.S.
Small
Cap
Equity
Fund
and
International
Developed
Markets
Fund
had
a
small
variance
to
the
third
quintile
of
its
Expense
Universe.
On
the
basis
of
the
Agreement
Evaluation
Information,
and
other
information
previously
received
by
the
Board
from
RIM
during
the
course
of
prior
years,
or
presented
at
or
in
connection
with
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting
by
RIM,
the
Board,
in
respect
of
each
Fund,
found,
after
considering
any
differences
in
the
composition
of
the
Expense
Universe
and
investment
strategies
of
its
respective
Comparable
Funds
and
in
light
of
other
factors
discussed
above:
(1)
the
Advisory
Fee
charged
by
RIM
was
acceptable
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
advisory
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
and
to
provide
continuity
of
investment
advisory
and
other
services
by
RIM
to
the
Fund;
(2)
except
as
noted
above,
the
relative
expense
ratio
of
the
Fund
either
was
comparable
to
those
of
its
Comparable
Funds
or
RIM
had
provided
an
explanation
satisfactory
to
the
Board
as
to
why
the
relative
expense
ratio
was
not
comparable
to
those
of
its
Comparable
Funds;
(3)
other
benefits
and
fees
received
by
RIM
or
its
affiliates
from
the
Fund
identified
in
the
Agreement
Evaluation
Information
were
not
considered
to
be
excessive;
(4)
RIM’s
reported
profitability
with
respect
to
the
Fund
was
not
considered
to
be
excessive
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided
by
RIM
and
applicable
judicial
and
regulatory
guidance;
and
(5)
the
Advisory
Fee
charged
by
RIM
appropriately
reflects
any
economies
of
scale
realized
by
such
Fund
in
light
of
various
factors,
including
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
Insurance
Contract
Holders;
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Funds;
and
RIM’s
advice
that
it
does
not
believe
it
will
experience
meaningful
economies
of
scale.
The
Board
concluded
that,
under
the
circumstances
and
based
on
RIM’s
performance
information
and
reviews
for
each
Fund,
the
performance
of
each
of
the
Funds
is
consistent
with
continuation
of
the
RIM
Agreement.
The
Board
noted
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
In
assessing
the
performance
of
Funds,
the
Board
focused
upon
each
Fund’s
performance
for
the
3-year
period
ended
December
31,
2019
as
most
relevant
but
also
considered
Fund
performance
for
the
1-
and
5-year
periods
ended
such
date.
In
reviewing
the
Funds’
performance
generally,
the
Board
took
into
consideration
various
steps
taken
by
RIM
in
the
past
year
to
enhance
the
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
172
Basis
for
Approval
of
Investment
Advisory
Agreement
performance
of
certain
Funds,
including
changes
in
Money
Managers
or
their
allocations,
and
RIM’s
implementation
or
expansion
of
its
Direct
Management
Services
and
other
strategies,
which
may
not
yet
be
fully
reflected
in
Fund
investment
results.
With
respect
to
the
U.S.
Strategic
Equity
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
for
the
3-year
period
ended
December
31,
2019
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe,
and
the
Fund’s
performance
for
the
1-
and
5-year
periods
ended
such
date
was
in
the
third
and
fourth
quintiles
of
its
Performance
Universe,
respectively.
According
to
RIM,
factors
contributing
to
the
Fund’s
relative
underperformance
during
the
3-year
period
included
the
Fund’s
tilt
toward
stocks
with
lower
valuation
characteristics
and
sector
positioning,
particularly
an
overweight
to
the
energy
sector
and
an
underweight
to
the
information
technology
sector.
The
Board
considered
that
the
changes
to
the
Fund’s
Money
Managers
and
changes
in
allocations
among
Money
Managers
and
RIM’s
Direct
Management
Services
that
were
implemented
over
the
last
two
years
to
enhance
performance
over
a
market
cycle
were
not
yet
fully
reflected
in
the
Fund’s
investment
results.
With
respect
to
the
International
Developed
Markets
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
for
the
3-year
period
ended
December
31,
2019
was
ranked
in
the
fourth
quintile
of
its
Performance
Universe,
and
the
Fund’s
performance
for
the
1-
and
5-year
periods
ended
such
date
was
in
the
fifth
and
third
quintiles
of
its
Performance
Universe,
respectively.
According
to
RIM,
factors
contributing
to
the
Fund’s
relative
underperformance
during
the
3-year
period
included
RIM’s
strategic
belief
and
tactical
preference
for
value,
and
overweights
to
Japan
and
the
financials
sector
relative
to
peers.
RIM
noted
its
preference
for
value
over
growth,
and
that
while
valuation
spreads
between
value
and
growth
have
been
at
historically
wide
levels,
it
believes
the
extent
of
the
valuation
spreads
is
not
sustainable,
and
RIM
continues
to
favor
valuation
sensitive
managers
in
its
tactical
positioning.
With
respect
to
the
Strategic
Bond
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
for
the
3-year
period
ended
December
31,
2019
was
ranked
in
the
fourth
quintile
of
its
Performance
Universe,
and
the
Fund’s
performance
for
the
1-
and
5-year
periods
ended
such
date
was
in
the
third
and
fourth
quintiles
of
its
Performance
Universe,
respectively.
RIM
noted
that
the
Fund’s
peers
benefitted
more
than
the
Fund
from
the
rally
in
investment
grade
corporate
bonds
as
the
Fund
tended
to
favor
taking
spread
risk
in
securitized
products
during
the
period.
RIM
further
noted
that
the
Fund’s
currency
strategies
and
exposure
to
TIPS
also
contributed
to
the
Fund’s
underperformance
relative
to
peers.
The
Board
considered
that
the
changes
to
the
Fund’s
Money
Managers
that
were
implemented
in
2019
were
not
yet
fully
reflected
in
the
Fund’s
investment
results.
The
Third-Party
Information
also
showed
that
the
performance
of
the
Global
Real
Estate
Securities
Fund
was
ranked
in
the
second
quintile
of
its
Performance
Universe
for
the
3-year
period
ended
December
31,
2019,
and
the
performance
of
the
U.S.
Small
Cap
Equity
Fund
was
ranked
in
the
third
quintile
of
its
Performance
Universe
for
the
3-year
period
ended
such
date.
In
evaluating
performance,
the
Board
considered
each
Fund’s
performance
not
only
relative
to
its
Comparable
Funds,
but
also
in
absolute
terms
and
relative
to
its
benchmark.
The
Board
considered
the
Funds’
performance
relative
to
their
benchmarks
in
light
of
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
For
the
1-year
period
ended
December
31,
2019,
the
Strategic
Bond
Fund
outperformed
its
benchmark;
and
for
the
3-year
and
5-year
periods
ended
December
31,
2019,
the
Global
Real
Estate
Securities
Fund
outperformed
its
benchmark.
The
Board
also
considered
the
Money
Manager
changes
that
have
been
made
during
the
past
year
and
that
the
performance
of
Money
Managers
continues
to
impact
Fund
performance
for
periods
prior
and
subsequent
to
their
termination.
Lastly,
the
Board
considered
the
implementation
of
additional
strategies
and
refinements
to
strategies
discussed
in
the
Agreement
Information
Materials
and
prior
Board
meetings
that
may
be
employed
by
RIM
in
respect
of
certain
Funds.
After
considering
the
foregoing
and
other
relevant
factors,
including
factors
described
above,
the
Board
concluded
in
respect
of
each
Fund
that
continuation
of
the
RIM
Agreement
would
be
in
the
best
interest
of
such
Fund
and
its
shareholders
and
voted
to
approve
the
continuation
of
the
RIM
Agreement.
At
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting,
with
respect
to
the
evaluation
of
the
terms
of
portfolio
management
contracts
with
Money
Managers,
the
Board
received
and
considered
information
from
RIM
reporting,
among
other
things,
for
each
Money
Manager,
the
Money
Manager’s
performance
over
various
periods;
RIM’s
assessment
of
the
performance
of
each
Money
Manager;
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Funds’
underwriter;
and
RIM’s
recommendation
to
retain
each
discretionary
or
non-discretionary
Money
Manager
on
the
current
terms
and
conditions,
including
at
the
current
fee
rate.
The
Board
received
reports
during
the
course
of
the
year
from
the
Funds’
CCO
regarding
her
assessments
of
Money
Manager
compliance
programs
and
any
compliance
issues.
RIM
did
not
identify
any
benefits
from
the
Funds’
portfolio
transactions
received
by
Money
Managers
or
their
affiliates
other
than
potential
benefits
from
soft
dollar
arrangements
or
commissions
paid
to
any
affiliated
broker-dealer
through
which
a
discretionary
Money
Manager
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
173
may
execute
trades.
The
Agreement
Evaluation
Information
(1)
described
RIM’s
oversight
of
the
discretionary
Money
Managers’
soft
dollar
arrangements,
(2)
expressed
RIM’s
belief
that,
based
upon
certifications
from
Money
Managers
and
pre-hire
and
ongoing
reviews
of
Money
Manager
documents
and
their
implementation,
the
discretionary
Money
Managers’
soft
dollar
programs
and
policies
and
procedures
are
consistent
with
applicable
legal,
regulatory
and
fiduciary
standards
and
(3)
stated
that
periodic
discretionary
Money
Manager
reviews
are
designed
to
(among
other
things)
obtain
reasonable
assurance
that
the
Money
Manager’s
actual
soft
dollar
practices
are
consistent
with
what
is
stated
in
their
policies
and
procedures
and
with
disclosures
made
by
Money
Managers
in
their
investment
adviser
registration
statements
filed
with
the
SEC.
RIM
recommended
that
each
of
the
Money
Managers
be
retained
for
its
current
discretionary
or
non-discretionary
assignment
at
its
current
fee
rate.
In
doing
so,
RIM,
as
it
has
in
the
past,
advised
the
Board
that
it
does
not
regard
Money
Manager
profitability
as
relevant
to
its
evaluation
of
the
portfolio
management
contracts
with
Money
Managers
because
the
willingness
of
Money
Managers
to
serve
in
such
capacity
depends
upon
arm’s-length
negotiations
with
RIM;
RIM
is
aware
of
the
standard
fee
rates
charged
by
Money
Managers
to
other
clients;
and
RIM
believes
that
the
fees
agreed
upon
with
Money
Managers
are
reasonable
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered.
The
Board
accepted
RIM’s
explanation
of
the
relevance
of
Money
Manager
profitability
in
light
of
RIM’s
belief
that
such
fees
are
reasonable;
the
Board’s
findings
as
to
the
acceptability
of
the
Advisory
Fee
paid
by
each
Fund;
and
the
fact
that
each
Money
Manager’s
fee
is
paid
by
RIM.
At
the
Agreement
Evaluation
Meeting,
RIM
reported
that
it
planned
to
recommend
to
the
Board
at
the
May
19,
2020
quarterly
Board
meeting
the
appointment
and
termination
of
certain
Money
Managers
and
new
portfolio
management
contracts
with
certain
Money
Managers
due
to
an
upcoming
change
in
control.
Based
upon
RIM’s
recommendations,
together
with
relevant
Agreement
Evaluation
Information,
the
Board
concluded
that
the
fees
paid
to
the
Money
Managers
of
each
Fund
are
acceptable
in
light
of
RIM’s
assessment
of
quality
of
the
investment
advisory
services
provided
and
that
continuation
of
the
portfolio
management
contract
with
each
Money
Manager
of
each
Fund
would
be
in
the
best
interests
of
the
Fund
and
its
shareholders.
*
*
*
This
discussion
is
not
intended
to
include
all
of
the
factors
and
information
considered
by
the
Board.
In
their
deliberations,
the
Trustees
did
not
identify
any
particular
information
as
to
the
RIM
Agreement
or,
other
than
RIM’s
recommendation,
the
portfolio
management
contract
with
any
Money
Manager
that
was
all-important
or
controlling,
except,
in
the
case
of
the
RIM
Agreement,
the
need
to
continue
the
managers-of-managers
structure
of
the
Funds
and
each
Trustee
attributed
different
weights
to
the
various
factors
considered.
The
Trustees
evaluated
all
information
available
to
them
on
a
Fund-by-Fund
basis
and
their
determinations
were
made
in
respect
of
each
Fund.
Approval
of
Money
Manager
Contracts
At
a
quarterly
meeting
held
on
May
19,
2020,
the
Board
received
proposals
from
RIM
to
approve
new
portfolio
management
contracts
for
the
U.S.
Strategic
Equity
Fund
and
the
Strategic
Bond
Fund
resulting
from
a
pending
change
of
control
of
a
Money
Manager
for
the
U.S.
Strategic
Equity
Fund
and
a
Money
Manager
(and
its
affiliate)
for
the
Strategic
Bond
Fund
that
are
each
subsidiaries
of
the
same
parent
company.
The
Trustees
approved
the
terms
of
each
proposed
new
portfolio
management
contract
based
upon
RIM’s
recommendation
to
hire
the
Money
Manager
at
the
proposed
fee
rate,
which
is
the
same
rate
as
under
the
prior
portfolio
management
contract;
information
as
to
the
reason
for
the
proposed
new
portfolio
management
contract;
information
as
to
the
Money
Manager’s
role
in
the
management
of
the
Fund’s
investment
portfolio
and
RIM’s
evaluation
of
the
quality
of
the
investment
advisory
services
provided
by
the
Money
Manager;
information
provided
by
RIM
that
there
are
no
expected
changes
to
the
Money
Manager’s
investment
process,
personnel
or
services
as
a
result
of
the
change
of
control;
information
as
to
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Fund’s
underwriter;
a
statement
from
the
CCO
that
there
have
been
no
changes
to
the
Money
Manager’s
compliance
policies
and
procedures;
and
information
provided
by
RIM
that
the
change
in
control
of
each
Money
Manager
would
have
no
impact
on
the
aggregate
Money
Manager
fees
to
be
paid
by
RIM
from
its
advisory
fee.
The
Trustees
considered
that
the
Agreement
Evaluation
Information
included
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;
and
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
Trustees’
approval
also
reflected
their
findings
at
prior
meetings,
including
the
Agreement
Approval
Meeting,
as
well
as
information
received
throughout
the
course
of
the
year
regarding,
among
other
things,
the
quality
of
services
provided
to
the
Funds
by
the
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
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
174
Basis
for
Approval
of
Investment
Advisory
Agreement
not
increase
or
decrease
as
a
result
of
the
implementation
of
the
proposed
new
portfolio
management
contracts
because
the
Money
Managers’
investment
advisory
fees
are
paid
by
RIM.
Russell
Investment
Funds
Liquidity
Risk
Management
Program
—
(Unaudited)
Liquidity
Risk
Management
Program
175
The
Funds
have
adopted
and
implemented
a
liquidity
risk
management
program
(the
“Program”)
in
accordance
with
Rule
22e-4
of
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”).
The
Program
seeks
to
assess,
manage,
and
review
each
Fund’s
“liquidity
risk.”
For
purposes
of
the
Liquidity
Rule,
“liquidity
risk”
is
defined
as
the
risk
that
a
Fund
is
unable
to
satisfy
redemption
requests
without
significantly
diluting
remaining
investors’
interests
in
the
Fund.
The
Program
is
comprised
of
various
components
designed
to
support
the
assessment
and/or
management
of
liquidity
risk,
including:
Assessment,
management
and
periodic
review
of
each
Fund’s
liquidity
risk;
Classification
of
each
Fund’s
investments
into
four
categories
or
liquidity
buckets
based
on
how
long
it
would
take
to
convert
the
investment
to
cash
(the
“Classification
Regime”);
Establishment
and
annual
review
of
a
highly
liquid
investment
minimum
(“HLIM”)
for
each
Fund
that
does
not
invest
primarily
in
“highly
liquid”
investments
(as
defined
under
the
Liquidity
Rule);
Requirements
applicable
to
a
Fund’s
holdings
of
“illiquid
investments”
(as
defined
under
the
Liquidity
Rule);
and
Implementation
of
redemption
in-kind
policies
and
procedures.
The
Board
of
Trustees
of
RIF
(the
“Board”)
appointed
RIM,
the
Funds’
investment
adviser,
as
the
Program
administrator
(the
“Program
Administrator”).
The
Program
Administrator
has
delegated
responsibility
to
implement
and
administer
the
Program,
subject
to
oversight
by
the
Program
Administrator,
to
one
or
more
RIM
associates
(the
“Program
Administrator
Delegate”).
The
Program
Administrator,
through
the
Program
Administrator
Delegate,
monitors
the
adequacy
and
effectiveness
of
the
Program’s
implementation
and
on
a
periodic
basis
assesses
each
Fund’s
liquidity
risk
based
on
a
variety
of
factors.
At
the
May
18,
2020
meeting
of
the
Regulatory
and
Investment
Compliance
Committee
of
the
Board
(the
“Meeting”),
the
Program
Administrator
reviewed
with
all
members
of
the
Board
the
Program
Administrator’s
initial
written
report
(the
“Report”)
addressing
the
Program’s
operation
as
well
as
the
adequacy
and
effectiveness
of
its
implementation
for
the
period
from
December
1,
2018
through
December
31,
2019
(the
“Program
Reporting
Period”).
The
Report
summarized
the
factors
considered
by
the
Program
Administrator
in
assessing
whether
the
Program
has
been
adequately
and
effectively
implemented
with
respect
to
each
Fund.
Such
information
and
factors
included,
among
other
things:
(1)
the
framework
used
to
assess,
manage,
and
periodically
review
each
Fund’s
liquidity
risk
and
the
results
of
this
assessment;
(2)
the
methodology
and
inputs
used
in
connection
with
the
Classification
Regime;
(3)
whether
a
new
HLIM
should
be
established,
or
an
existing
HLIM
continued
or
modified,
for
each
Fund
and
the
procedures
for
monitoring
for
HLIM
compliance;
(4)
whether
a
Fund
invested
more
than
15%
of
its
assets
in
illiquid
investments
and
the
procedures
for
monitoring
for
this
limit;
and
(5)
specific
liquidity
events
arising
during
the
Program
Reporting
Period,
including
the
impact
on
Fund
liquidity
caused
by
extended
non-U.S.
market
closures.
The
Board
also
received
information
prior
to
and
as
part
of
the
Meeting
relating
to
the
Program’s
operation
subsequent
to
the
Reporting
Period
in
light
of
the
COVID-19
crisis.
There
were
no
changes
to
the
Funds’
written
policies
and
procedures
related
to
the
Program
during
the
Program
Reporting
Period
but
the
Board
was
informed
of
certain
clarifications
to
such
written
policies
and
procedures
that
would
be
implemented
following
the
Meeting.
Based
on
the
Program
Administrator’s
review
and
the
factors
set
forth
in
the
Report,
the
Report
concluded
that:
(1)
the
Program
continues
to
be
reasonably
designed
to
effectively
assess
and
manage
each
Fund’s
liquidity
risk;
(2)
each
Fund’s
liquidity
risk
continues
to
be
appropriate
in
light
of
the
Fund’s
investment
objective
and
strategies;
(3)
each
Fund’s
investment
strategies
continue
to
be
appropriate
for
an
open-ended
management
investment
company;
and
(4)
the
Program
has
been
adequately
and
effectively
implemented
with
respect
to
each
Fund,
including
the
establishment
and
operation
of
the
HLIM
for
applicable
Funds.
Russell
Investment
Funds
Shareholder
Requests
for
Additional
Information
—
June
30,
2020
(Unaudited)
176
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;
(ii)
at
https://russellinvestments.com;
and
(iii)
on
the
Securities
and
Exchange
Commission’s
website
at
www.sec.gov.
If
possible,
depending
on
contract
owner
registration
and
address
information,
and
unless
you
have
otherwise
opted
out,
only
one
copy
of
the
RIF
prospectus
and
each
annual
and
semi-annual
report
will
be
sent
to
contract
owners
at
the
same
address.
If
you
would
like
to
receive
a
separate
copy
of
these
documents,
please
contact
your
Insurance
Company.
If
you
currently
receive
multiple
copies
of
the
prospectus,
annual
report
and
semi-annual
report
and
would
like
to
request
to
receive
a
single
copy
of
these
documents
in
the
future,
please
call
your
Insurance
Company.
Some
Insurance
Companies
may
offer
electronic
delivery
of
the
Funds’
prospectuses
and
annual
and
semi-annual
reports.
Please
contact
your
Insurance
Company
for
further
details.
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers
—
June
30,
2020
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
177
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
nine
funds.
Each
of
the
Trustees
is
a
trustee
of
RIC
and
RIF.
The
first
table
provides
information
for
the
Independent
Trustees.
The
second
table
provides
information
for
the
Trustee
Emeritus.
The
third
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;
and
Mr.
Thompson
has
had
experience
in
business,
governance,
investment
and
financial
reporting
matters
as
a
senior
executive
of
an
organization
sponsoring
and
managing
other
investment
companies,
and,
subsequently,
has
served
as
a
board
member
of
other
investment
companies.
*
Each
Trustee
shall
retire
from
service
on
the
Board
of
Trustees
at
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
However,
at
the
discretion
of
the
Board
and
upon
the
request
of
the
Trustee,
a
one-year
waiver
may
be
granted
from
the
application
of
the
policy,
which
will
allow
the
Trustee
to
continue
to
serve
on
the
Board
for
an
additional
one-year
period
following
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
A
maximum
of
five
one-year
waivers
may
be
requested
by
the
Trustee
and
granted
by
the
Board
to
the
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
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
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)
43
Lead
Independent
Director,
Avista
Corp.
(electric
utilities)
Until
May
2017,
Director,
Avista
Corp
(electric
utilities)
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2020
(Unaudited)
178
Disclosure
of
Information
about
Fund
Trustees
and
Officers
*
Each
Trustee
shall
retire
from
service
on
the
Board
of
Trustees
at
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
However,
at
the
discretion
of
the
Board
and
upon
the
request
of
the
Trustee,
a
one-year
waiver
may
be
granted
from
the
application
of
the
policy,
which
will
allow
the
Trustee
to
continue
to
serve
on
the
Board
for
an
additional
one-year
period
following
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
A
maximum
of
five
one-year
waivers
may
be
requested
by
the
Trustee
and
granted
by
the
Board
to
the
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)
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)
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
Chairman
of
Regulatory
and
Investment
Compliance
Committee
since
2020
Appointed
until
successor
is
duly
elected
and
qualified
Retired
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Julie
Dien
Ledoux,
Born
August
17,
1969
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2019
Appointed
until
successor
is
duly
elected
and
qualified
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
43
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2020
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
179
*
Each
Trustee
shall
retire
from
service
on
the
Board
of
Trustees
at
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
However,
at
the
discretion
of
the
Board
and
upon
the
request
of
the
Trustee,
a
one-year
waiver
may
be
granted
from
the
application
of
the
policy,
which
will
allow
the
Trustee
to
continue
to
serve
on
the
Board
for
an
additional
one-year
period
following
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
A
maximum
of
five
one-year
waivers
may
be
requested
by
the
Trustee
and
granted
by
the
Board
to
the
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
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
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
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
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
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2020
(Unaudited)
180
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
(continued)
Mark
E.
Swanson,
Born
November
26,
1963
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
President
and
Chief
Executive
Officer
since
2020
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
President,
Chief
Executive
Officer,
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
Executive
Officer,
Asia
Pacific,
Russell
Investments
President,
RIM
Mary
Beth
R.
Albaneze,
Born
April
25,
1969
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Secretary
and
Chief
Legal
Officer
since
2010
Until
successor
is
chosen
and
qualified
by
Trustees
Associate
General
Counsel,
Russell
Investments
Secretary,
RIM,
RIFUS
and
RIFIS
Secretary
and
Chief
Legal
Officer,
RIC
and
RIF
Assistant
Secretary,
U.S.
One,
LLC
Russell
Investment
Funds
Adviser,
Money
Managers
and
Service
Providers
—
June
30,
2020
(Unaudited)
Adviser,
Money
Managers
and
Service
Providers
181
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
E.
Swanson,
President,
Chief
Executive
Officer,
Treasurer,
Chief
Accounting
Officer
&
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
021171
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
2020
SEMI-ANNUAL
REPORT
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
JUNE
30,
2020
FUND
Moderate
Strategy
Fund
Balanced
Strategy
Fund
Growth
Strategy
Fund
Equity
Growth
Strategy
Fund
Beginning
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
paper
copies
of
the
Funds’
annual
and
semi-annual
shareholder
reports
like
this
one
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
supported
by
your
financial
professional
or
variable
annuity
provider,
you
may
elect
to
receive
shareholder
reports
and
other
Fund
communications
electronically.
Please
contact
your
financial
professional
or
variable
annuity
provider
for
more
information.
You
may
elect
to
receive
all
future
shareholder
reports
in
paper
free
of
charge.
Please
contact
your
financial
professional
or
variable
annuity
provider
to
inform
them
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports.
Your
election
to
receive
reports
in
paper
will
apply
to
all
Russell
Investment
Funds
and
other
funds
you
hold
with
your
financial
professional
or
variable
annuity
provider.
Russell
Investment
Funds
Russell
Investment
Funds
is
a
series
investment
company
with
nine
different
investment
portfolios
referred
to
as
Funds.
These
financial
statements
report
on
four
of
these
Funds.
Page
Moderate
Strategy
Fund
3
Balanced
Strategy
Fund
17
Growth
Strategy
Fund
33
Equity
Growth
Strategy
Fund
49
Notes
to
Schedules
of
Investments
63
Notes
to
Financial
Highlights
65
Notes
to
Financial
Statements
66
Basis
for
Approval
of
Investment
Advisory
Agreement
80
Liquidity
Risk
Management
Program
90
Shareholder
Requests
for
Additional
Information
91
Disclosure
of
Information
about
Fund
Trustees
and
Officers
92
Adviser
and
Service
Providers
96
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Semi-annual
Report
June
30,
2020
(Unaudited)
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.
Fund
objectives,
risks,
charges
and
expenses
should
be
carefully
considered
before
in-
vesting.
A
prospectus
containing
this
and
other
important
information
must
precede
or
accompany
this
material.
Please
read
the
prospectus
carefully
before
investing.
Securities
distributed
through
Russell
Investments
Financial
Services,
LLC,
member
FINRA
and
part
of
Russell
Investments.
Performance
quoted
represents
past
performance
and
does
not
guarantee
future
results.
The
investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Russell
Investment
Funds
Moderate
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
Moderate
Strategy
Fund
3
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2020
$
949
.60
$
1,024
.17
Expenses
Paid
During
Period*
$
0
.68
$
0
.70
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.14%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/366
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
4
Moderate
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
93.2%
Alternative
-
1.9%
RIC
Commodity
Strategies
Fund
Class
Y
413,064
1,710
Domestic
Equities
-
13.6%
RIF
U.S.
Small
Cap
Equity
Fund
529,553
6,063
RIF
U.S.
Strategic
Equity
Fund
385,866
6,035
12,098
Fixed
Income
-
49.0%
RIC
Investment
Grade
Bond
Fund
Class
Y
440,403
10,125
RIC
Unconstrained
Total
Return
Fund
Class
Y
2,525,693
23,465
RIF
Strategic
Bond
Fund
919,464
10,114
43,704
International
Equities
-
17.3
%
RIC
Emerging
Markets
Fund
Class
Y
255,825
4,280
RIC
Global
Equity
Fund
Class
Y
705,815
5,978
RIF
International
Developed
Markets
Fund
519,845
5,115
15,373
Multi-Asset
-
11.4%
RIC
Multi-Strategy
Income
Fund
Class
Y
1,068,626
10,184
Total
Investments
in
Affiliated
Funds
(cost
$82,526)
83,069
Short-Term
Investments
-
4.2%
U.S.
Cash
Management
Fund
(@)
3,738,409
(∞)
3,738
Total
Short-Term
Investments
(cost
$3,738)
3,738
Total
Investments
-
97.4%
(identified
cost
$86,264)
86,807
Other
Assets
and
Liabilities,
Net
-
2.6%
2,319
Net
Assets
-
100.0%
89,126
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
5
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Amsterdam
Index
Futures
5
EUR
560
07/20
3
CAC40
Euro
Index
Futures
27
EUR
1,327
07/20
1
DAX
Index
Futures
4
EUR
1,233
09/20
6
Dow
Jones
U.S.
Real
Estate
Index
Futures
65
USD
2,014
09/20
(33)
EURO
STOXX
50
Index
Futures
26
EUR
838
09/20
7
FTSE
100
Index
Futures
4
GBP
246
09/20
(2)
FTSE/MIB
Index
Futures
3
EUR
289
09/20
(6)
Hang
Seng
Index
Futures
2
HKD
2,425
07/20
(3)
IBEX
35
Index
Futures
5
EUR
360
07/20
(10)
MSCI
EAFE
Index
Futures
15
USD
1,334
09/20
—
MSCI
Emerging
Markets
Index
Futures
18
USD
887
09/20
11
OMXS30
Index
Futures
19
SEK
3,166
07/20
14
S&P
500
E-Mini
Index
Futures
18
USD
2,781
09/20
46
S&P/TSX
60
Index
Futures
4
CAD
743
09/20
10
SPI
200
Index
Futures
8
AUD
1,178
09/20
4
TOPIX
Index
Futures
6
JPY
93,509
09/20
(38)
United
States
Treasury
Long
Bond
Futures
34
USD
6,070
09/20
196
Short
Positions
NASDAQ
100
E-Mini
Index
Futures
21
USD
4,261
09/20
(222)
Russell
2000
E-Mini
Index
Futures
54
USD
3,882
09/20
(104)
S&P
Financial
Select
Sector
Index
Futures
25
USD
1,779
09/20
61
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(59)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
USD
221
AUD
315
09/16/20
(3)
Citigroup
USD
368
CAD
494
09/16/20
(4)
Citigroup
USD
972
CNY
6,920
09/16/20
3
Citigroup
USD
350
EUR
307
09/16/20
(4)
Citigroup
USD
199
HKD
1,542
09/16/20
—
Citigroup
USD
369
JPY
39,503
09/16/20
(3)
Citigroup
USD
26
MXN
575
09/17/20
(1)
Citigroup
CHF
118
USD
125
09/16/20
—
Citigroup
GBP
241
USD
307
09/16/20
9
Citigroup
KRW
349,910
USD
291
09/16/20
(1)
Citigroup
SEK
432
USD
47
09/16/20
—
Citigroup
SGD
26
USD
18
09/16/20
—
Citigroup
ZAR
250
USD
15
09/16/20
1
Royal
Bank
of
Canada
USD
221
AUD
315
09/16/20
(4)
Royal
Bank
of
Canada
USD
368
CAD
494
09/16/20
(5)
Royal
Bank
of
Canada
USD
350
EUR
307
09/16/20
(5)
Royal
Bank
of
Canada
USD
199
HKD
1,542
09/16/20
—
Royal
Bank
of
Canada
USD
369
JPY
39,503
09/16/20
(3)
Royal
Bank
of
Canada
USD
26
MXN
575
09/17/20
(1)
Royal
Bank
of
Canada
CHF
118
USD
125
09/16/20
—
Royal
Bank
of
Canada
GBP
241
USD
308
09/16/20
10
Royal
Bank
of
Canada
SEK
432
USD
47
09/16/20
1
Royal
Bank
of
Canada
SGD
26
USD
18
09/16/20
—
Royal
Bank
of
Canada
ZAR
250
USD
15
09/16/20
1
State
Street
USD
19
RUB
1,340
09/16/20
(1)
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
6
Moderate
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
State
Street
INR
8,140
USD
107
09/16/20
—
State
Street
TWD
9,520
USD
324
09/16/20
(3)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(13)
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
Investment
Grade
Index
Goldman
Sachs
Purchase
USD
5,900
(1.000%)
(2)
06/20/25
114
(185)
(71)
CDX
NA
Investment
Grade
Index
Bank
of
America
Sell
USD
1,520
5.000%
(2)
06/20/25
(70)
61
(9)
Total
Open
Credit
Indices
Contracts
(å)
44
(124)
(80)
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
$
83,069
$
—
$
—
$
—
$
83,069
93.2
Short-Term
Investments
—
—
—
3,738
3,738
4.2
Total
Investments
83,069
—
—
3,738
86,807
97.4
Other
Assets
and
Liabilities,
Net
2.6
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
359
—
—
—
359
0.4
Foreign
Currency
Exchange
Contracts
—
25
—
—
25
—*
'
Liabilities
Futures
Contracts
(418)
—
—
—
(418)
(0.5)
Foreign
Currency
Exchange
Contracts
—
(38)
—
—
(38)
(—)*
Credit
Default
Swap
Contracts
—
(80)
—
—
(80)
(0.1)
Total
Other
Financial
Instruments
**
$
(59)
$
(93)
$
—
$
—
$
(152)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Moderate
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
7
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
25
$
—
Variation
margin
on
futures
contracts*
16
3
—
—
19
6
Total
$
16
3
$
—
$
25
$
19
6
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
418
$
—
$
—
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
38
—
Credit
default
swap
contracts,
at
fair
value
—
80
—
—
Total
$
418
$
80
$
38
$
—
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
(231)
$
—
$
—
$
—
Credit
default
swap
contracts
—
(436)
—
—
Foreign
currency
exchange
contracts
—
—
31
—
Total
$
(231)
$
(436)
$
31
$
—
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
42
$
—
$
—
$
194
Credit
default
swap
contracts
—
(244)
—
—
Foreign
currency
exchange
contracts
—
—
(32)
—
Total
$
42
$
(244)
$
(32)
$
194
*
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
Moderate
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
8
Moderate
Strategy
Fund
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
25
$
—
$
25
Total
Financial
and
Derivative
Assets
25
—
25
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
25
$
—
$
25
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Citigroup
$
13
$
13
$
—
$
—
Royal
Bank
of
Canada
1
2
1
2
—
—
Total
$
2
5
$
2
5
$
—
$
—
Russell
Investment
Funds
Moderate
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
9
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
38
$
—
$
38
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
80
—
80
Total
Financial
and
Derivative
Liabilities
118
—
118
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(80)
—
(80)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
38
$
—
$
38
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
Citigroup
$
17
$
13
$
—
$
4
Royal
Bank
of
Canada
17
1
2
—
5
State
Street
4
—
—
4
Total
$
38
$
2
5
$
—
$
1
3
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
Moderate
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
86,264
Investments,
at
fair
value(>)
...........................................................................................................................................................
86,807
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
25
Receivables:
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Investments
sold
................................................................................................................................................................
40
From
affiliates
....................................................................................................................................................................
4
From
broker(a)(b)
...............................................................................................................................................................
2,644
Total
assets
.................................................................................................................................................
89,521
Liabilities
Payables:
Due
to
custodian
................................................................................................................................................................
3
Due
to
broker
(c)
................................................................................................................................................................
124
Fund
shares
redeemed
.......................................................................................................................................................
38
Accrued
fees
to
affiliates
....................................................................................................................................................
4
Other
accrued
expenses
.....................................................................................................................................................
50
Variation
margin
on
futures
contracts
.................................................................................................................................
58
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
38
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
80
Total
liabilities
.............................................................................................................................................
395
Net
Assets
............................................................................................................................................................
$
89,126
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
11
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
(1,543
)
Shares
of
beneficial
interest
...........................................................................................................................................................
95
Additional
paid-in
capital
..............................................................................................................................................................
90,574
Net
Assets
............................................................................................................................................................
$
89,126
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.39
Net
assets
...............................................................................................................................................................................
$
89,125,907
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
9,490,536
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
44
(>)
Investments
in
affiliated
funds
$
86,807
(a)
Receivable
from
Broker
for
Futures
$
2,437
(b)
Receivable
from
Broker
for
Swaps
$
207
(c) Due
to
Broker
for
Futures
$
124
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
Moderate
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
371
Expenses
Advisory
fees
....................................................................................................................................................................
90
Administrative
fees
...........................................................................................................................................................
19
Custodian
fees
...................................................................................................................................................................
28
Transfer
agent
fees
...........................................................................................................................................................
2
Professional
fees
...............................................................................................................................................................
22
Trustees’
fees
....................................................................................................................................................................
2
Printing
fees
......................................................................................................................................................................
11
Miscellaneous
...................................................................................................................................................................
4
Expenses
before
reductions
..............................................................................................................................................
178
Expense
reductions
...........................................................................................................................................................
(115)
Net
expenses
.................................................................................................................................................................................
63
Net
investment
income
(loss)
........................................................................................................................................................
308
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(397)
Futures
contracts
..............................................................................................................................................................
(231)
Foreign
currency
exchange
contracts
................................................................................................................................
31
Credit
default
swap
contracts
............................................................................................................................................
(436)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
211
Net
realized
gain
(loss)
..................................................................................................................................................................
(822)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(4,752)
Futures
contracts
..............................................................................................................................................................
236
Foreign
currency
exchange
contracts
................................................................................................................................
(32)
Credit
default
swap
contracts
............................................................................................................................................
(244)
Foreign
currency-related
transactions
...............................................................................................................................
(10)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(4,802)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(5,624)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(5,316)
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
13
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
308
$
3,021
Net
realized
gain
(loss)
......................................................................................................................
(822)
462
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(4,802)
8,525
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(5,316)
12,008
Distributions
To
shareholders
.................................................................................................................................
(1,516)
(3,680)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(1,516)
(3,680)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(4,387)
(9,086)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(11,219)
(758)
Net
Assets
Beginning
of
period
.................................................................................................................................
100,345
101,103
End
of
period
..........................................................................................................................................
$
89,126
$
100,345
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
429
$
3,967
401
$
3,863
Proceeds
from
reinvestment
of
distributions
159
1,517
384
3,680
Payments
for
shares
redeemed
(1,082)
(9,871)
(1,717)
(16,629)
Total
increase
(decrease)
(494)
$
(4,387)
(932)
$
(9,086)
Russell
Investment
Funds
Moderate
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
14
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2020(1)
10.05
.03
(.53)
(.50)
(.16)
—
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
15
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.16)
9.39
(5.04)
89,126
.39
.14
.69
15
(.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.
16
Moderate
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
1
Administration
fees
3,126
Transfer
agent
fees
323
Trustee
fees
198
$
3,648
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
$
2,024
$
216
$
107
$
(28
)
$
(395
)
$
1,710
$
—
$
—
RIF
U.S.
Small
Cap
Equity
Fund
7,045
1,041
669
(95
)
(1,259
)
6,063
3
152
RIF
U.S.
Strategic
Equity
Fund
7,064
403
1,221
(136
)
(75
)
6,035
15
59
RIC
Investment
Grade
Bond
Fund
11,910
428
2,750
21
516
10,125
63
—
RIC
Unconstrained
Total
Return
Fund
17,972
8,855
2,440
(201
)
(721
)
23,465
97
—
RIF
Strategic
Bond
Fund
21,880
498
12,649
373
12
10,114
157
—
RIC
Emerging
Markets
Fund
5,105
293
382
(9
)
(727
)
4,280
—
—
RIC
Global
Equity
Fund
7,055
350
750
(106
)
(571
)
5,978
—
—
RIF
International
Developed
Markets
Fund
6,028
409
344
(46
)
(932
)
5,115
21
—
RIC
Multi-Strategy
Income
Fund
12,028
139
1,213
(170
)
(600
)
10,184
12
—
U.S.
Cash
Management
Fund
531
39,210
36,003
—
—
3,738
3
—
$
98,642
$
51,842
$
58,528
$
(397
)
$
(4,752
)
$
86,807
$
371
$
211
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
87,413,467
$
6,562,448
$
(7,320,556)
$
(758,108)
Russell
Investment
Funds
Balanced
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
Balanced
Strategy
Fund
17
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2020
$
922
.90
$
1,024
.17
Expenses
Paid
During
Period*
$
0
.67
$
0
.70
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.14%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/366
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
18
Balanced
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
93.5%
Alternative
-
3.8%
RIC
Commodity
Strategies
Fund
Class
Y
1,039,643
4,304
RIF
Global
Real
Estate
Securities
Fund
337,886
4,203
8,507
Domestic
Equities
-
17.5%
RIF
U.S.
Small
Cap
Equity
Fund
1,147,143
13,135
RIF
U.S.
Strategic
Equity
Fund
1,667,677
26,082
39,217
Fixed
Income
-
30.9%
RIC
Unconstrained
Total
Return
Fund
Class
Y
4,071,848
37,828
RIF
Strategic
Bond
Fund
2,867,487
31,542
69,370
International
Equities
-
31.8%
RIC
Emerging
Markets
Fund
Class
Y
777,487
13,007
RIC
Global
Equity
Fund
Class
Y
3,822,633
32,379
RIF
International
Developed
Markets
Fund
2,625,975
25,840
71,226
Multi-Asset
-
9.5%
RIC
Multi-Strategy
Income
Fund
Class
Y
2,245,486
21,399
Total
Investments
in
Affiliated
Funds
(cost
$205,551)
209,719
Short-Term
Investments
-
4.1%
U.S.
Cash
Management
Fund
(@)
9,259,096
(∞)
9,258
Total
Short-Term
Investments
(cost
$9,259)
9,258
Total
Investments
-
97.6%
(identified
cost
$214,810)
218,977
Other
Assets
and
Liabilities,
Net
-
2.4%
5,402
Net
Assets
-
100.0%
224,379
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
19
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Amsterdam
Index
Futures
18
EUR
2,014
07/20
12
CAC40
Euro
Index
Futures
97
EUR
4,766
07/20
3
DAX
Index
Futures
14
EUR
4,314
09/20
22
Dow
Jones
U.S.
Real
Estate
Index
Futures
162
USD
5,019
09/20
(81)
EURO
STOXX
50
Index
Futures
88
EUR
2,836
09/20
22
FTSE
100
Index
Futures
18
GBP
1,107
09/20
(7)
FTSE/MIB
Index
Futures
11
EUR
1,061
09/20
(21)
IBEX
35
Index
Futures
16
EUR
1,154
07/20
(33)
MSCI
EAFE
Index
Futures
9
USD
800
09/20
—
MSCI
Emerging
Markets
Index
Futures
84
USD
4,140
09/20
53
OMXS30
Index
Futures
68
SEK
11,331
07/20
52
S&P
400
E-Mini
Index
Futures
1
USD
178
09/20
3
S&P
500
E-Mini
Index
Futures
91
USD
14,060
09/20
235
S&P/TSX
60
Index
Futures
2
CAD
371
09/20
5
SPI
200
Index
Futures
9
AUD
1,326
09/20
5
United
States
Treasury
Long
Bond
Futures
45
USD
8,035
09/20
204
Short
Positions
Hang
Seng
Index
Futures
1
HKD
1,212
07/20
2
MSCI
Singapore
Index
Futures
1
SGD
30
07/20
—
NASDAQ
100
E-Mini
Index
Futures
85
USD
17,251
09/20
(899)
S&P
Financial
Select
Sector
Index
Futures
48
USD
3,416
09/20
118
TOPIX
Index
Futures
29
JPY
451,965
09/20
(18)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(323)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
USD
494
CAD
663
09/16/20
(6)
Citigroup
USD
238
CHF
224
09/16/20
(1)
Citigroup
USD
2,168
CNY
15,430
09/16/20
6
Citigroup
USD
878
JPY
94,023
09/16/20
(7)
Citigroup
USD
25
MXN
553
09/17/20
(1)
Citigroup
USD
198
NOK
1,850
09/16/20
(6)
Citigroup
AUD
909
USD
637
09/16/20
10
Citigroup
BRL
5,310
USD
1,067
09/16/20
94
Citigroup
EUR
1,381
USD
1,573
09/16/20
19
Citigroup
GBP
910
USD
1,161
09/16/20
33
Citigroup
HKD
1,498
USD
193
09/16/20
—
Citigroup
KRW
1,695,470
USD
1,410
09/16/20
(4)
Citigroup
SEK
618
USD
67
09/16/20
1
Citigroup
SGD
306
USD
221
09/16/20
2
Citigroup
TRY
587
USD
84
09/16/20
—
Citigroup
ZAR
70
USD
4
09/16/20
—
JPMorgan
Chase
USD
495
CAD
663
09/16/20
(6)
JPMorgan
Chase
USD
238
CHF
224
09/16/20
(1)
JPMorgan
Chase
USD
878
JPY
94,023
09/16/20
(6)
JPMorgan
Chase
USD
25
MXN
553
09/17/20
(1)
JPMorgan
Chase
USD
199
NOK
1,850
09/16/20
(6)
JPMorgan
Chase
AUD
909
USD
637
09/16/20
9
JPMorgan
Chase
EUR
1,381
USD
1,573
09/16/20
19
JPMorgan
Chase
GBP
910
USD
1,161
09/16/20
33
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
20
Balanced
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
JPMorgan
Chase
HKD
1,498
USD
193
09/16/20
—
JPMorgan
Chase
SEK
618
USD
67
09/16/20
1
JPMorgan
Chase
SGD
306
USD
221
09/16/20
1
JPMorgan
Chase
TRY
587
USD
84
09/16/20
—
JPMorgan
Chase
ZAR
70
USD
4
09/16/20
—
Royal
Bank
of
Canada
USD
495
CAD
663
09/16/20
(7)
Royal
Bank
of
Canada
USD
238
CHF
224
09/16/20
(1)
Royal
Bank
of
Canada
USD
878
JPY
94,023
09/16/20
(6)
Royal
Bank
of
Canada
USD
25
MXN
553
09/17/20
(1)
Royal
Bank
of
Canada
USD
199
NOK
1,850
09/16/20
(7)
Royal
Bank
of
Canada
AUD
909
USD
638
09/16/20
10
Royal
Bank
of
Canada
EUR
1,381
USD
1,575
09/16/20
21
Royal
Bank
of
Canada
GBP
910
USD
1,164
09/16/20
36
Royal
Bank
of
Canada
HKD
1,498
USD
193
09/16/20
—
Royal
Bank
of
Canada
SEK
618
USD
67
09/16/20
1
Royal
Bank
of
Canada
SGD
306
USD
221
09/16/20
2
Royal
Bank
of
Canada
TRY
587
USD
84
09/16/20
—
Royal
Bank
of
Canada
ZAR
70
USD
4
09/16/20
—
State
Street
USD
27
RUB
1,880
09/16/20
(1)
State
Street
INR
49,110
USD
644
09/16/20
(1)
State
Street
TWD
28,550
USD
971
09/16/20
(10)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
219
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
High
Yield
Index
Goldman
Sachs
Sell
USD
1,425
5.000%
(2)
06/20/25
(72)
64
(8)
CDX
Investment
Grade
Index
Bank
of
America
Purchase
USD
7,800
(1.000%)
(2)
06/20/25
153
(246)
(93)
Total
Open
Credit
Indices
Contracts
(å)
81
(182)
(101)
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
$
209,719
$
—
$
—
$
—
$
209,719
93.5
Short-Term
Investments
—
—
—
9,258
9,258
4.1
Total
Investments
209,719
—
—
9,258
218,977
97.6
Other
Assets
and
Liabilities,
Net
2.4
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
736
—
—
—
736
0.3
Foreign
Currency
Exchange
Contracts
—
298
—
—
298
0.1
'
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
21
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Liabilities
Futures
Contracts
(1,059)
—
—
—
(1,059)
(0.5)
Foreign
Currency
Exchange
Contracts
—
(79)
—
—
(79)
(—)
*
Credit
Default
Swap
Contracts
—
(101)
—
—
(101)
(—)
*
Total
Other
Financial
Instruments
**
$
(323)
$
118
$
—
$
—
$
(205)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
22
Balanced
Strategy
Fund
Russell
Investment
Funds
Balanced
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
298
$
—
Variation
margin
on
futures
contracts*
532
—
—
204
Total
$
532
$
—
$
298
$
204
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
1,059
$
—
$
—
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
79
—
Credit
default
swap
contracts,
at
fair
value
—
101
—
—
Total
$
1,059
$
101
$
79
$
—
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
(2,845)
$
—
$
—
$
—
Credit
default
swap
contracts
—
(359)
—
—
Foreign
currency
exchange
contracts
—
—
280
—
Total
$
(2,845)
$
(359)
$
280
$
—
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
154
$
—
$
—
$
204
Credit
default
swap
contracts
—
(145)
—
—
Foreign
currency
exchange
contracts
—
—
338
—
Total
$
154
$
(145)
$
338
$
204
*
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
Balanced
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
23
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
298
$
—
$
298
Total
Financial
and
Derivative
Assets
298
—
298
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
298
$
—
$
298
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
$
16
5
$
24
$
—
$
141
JPMorgan
Chase
63
20
—
43
Royal
Bank
of
Canada
70
22
—
48
Total
$
29
8
$
66
$
—
$
232
Russell
Investment
Funds
Balanced
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
24
Balanced
Strategy
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
79
$
—
$
79
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
101
—
101
Total
Financial
and
Derivative
Liabilities
180
—
180
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(10
1
)
—
(10
1
)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
7
9
$
—
$
7
9
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Citigroup
$
24
$
24
$
—
$
—
JPMorgan
Chase
20
20
—
—
Royal
Bank
of
Canada
22
22
—
—
State
Street
1
3
—
—
1
3
Total
$
7
9
$
66
$
—
$
1
3
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
25
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
214,810
Investments,
at
fair
value(>)
...........................................................................................................................................................
218,977
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
298
Receivables:
Dividends
from
affiliated
funds
..........................................................................................................................................
2
Investments
sold
................................................................................................................................................................
86
From
broker(a)(b)
...............................................................................................................................................................
5,682
Prepaid
expenses
...........................................................................................................................................................................
1
Total
assets
.................................................................................................................................................
225,046
Liabilities
Payables:
Due
to
custodian
................................................................................................................................................................
2
Fund
shares
redeemed
.......................................................................................................................................................
87
Accrued
fees
to
affiliates
....................................................................................................................................................
11
Other
accrued
expenses
.....................................................................................................................................................
67
Variation
margin
on
futures
contracts
.................................................................................................................................
320
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
79
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
101
Total
liabilities
.............................................................................................................................................
667
Net
Assets
............................................................................................................................................................
$
224,379
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
26
Balanced
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
(3,669)
Shares
of
beneficial
interest
...........................................................................................................................................................
254
Additional
paid-in
capital
..............................................................................................................................................................
227,794
Net
Assets
............................................................................................................................................................
$
224,379
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
8.82
Net
assets
...............................................................................................................................................................................
$
224,379,329
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
25,431,881
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
81
(>)
Investments
in
affiliated
funds
$
218,977
(a)
Receivable
from
Broker
for
Futures
$
5,464
(b)
Receivable
from
Broker
for
Swaps
$
218
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
27
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
778
Expenses
Advisory
fees
....................................................................................................................................................................
229
Administrative
fees
...........................................................................................................................................................
49
Custodian
fees
...................................................................................................................................................................
30
Transfer
agent
fees
...........................................................................................................................................................
5
Professional
fees
...............................................................................................................................................................
28
Trustees’
fees
....................................................................................................................................................................
6
Printing
fees
......................................................................................................................................................................
23
Miscellaneous
...................................................................................................................................................................
5
Expenses
before
reductions
..............................................................................................................................................
375
Expense
reductions
...........................................................................................................................................................
(214)
Net
expenses
.................................................................................................................................................................................
161
Net
investment
income
(loss)
........................................................................................................................................................
617
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(1,842)
Futures
contracts
..............................................................................................................................................................
(2,845)
Foreign
currency
exchange
contracts
................................................................................................................................
280
Credit
default
swap
contracts
............................................................................................................................................
(359)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
609
Net
realized
gain
(loss)
..................................................................................................................................................................
(4,157)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(17,631)
Futures
contracts
..............................................................................................................................................................
358
Foreign
currency
exchange
contracts
................................................................................................................................
338
Credit
default
swap
contracts
............................................................................................................................................
(145)
Foreign
currency-related
transactions
...............................................................................................................................
(5)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(17,085)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(21,242)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(20,625)
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
28
Balanced
Strategy
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
617
$
7,536
Net
realized
gain
(loss)
......................................................................................................................
(4,157)
4,893
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(17,085)
26,836
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(20,625)
39,265
Distributions
To
shareholders
.................................................................................................................................
(5,718)
(8,971)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(5,718)
(8,971)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(12,951)
(19,950)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(39,294)
10,344
Net
Assets
Beginning
of
period
.................................................................................................................................
263,673
253,329
End
of
period
..........................................................................................................................................
$
224,379
$
263,673
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
502
$
4,304
855
$
7,917
Proceeds
from
reinvestment
of
distributions
616
5,718
962
8,971
Payments
for
shares
redeemed
(2,657
)
(22,973
)
(3,973
)
(36,838
)
Total
increase
(decrease)
(1,539
)
$
(12,951
)
(2,156
)
$
(19,950
)
Russell
Investment
Funds
Balanced
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
30
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2020(1)
9.78
.02
(.76)
(.74)
(.09)
(.13)
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
31
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.22)
8.82
(7.71)
224,379
.33
.14
.54
7
(.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.
32
Balanced
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
2,045
Administration
fees
7,896
Transfer
agent
fees
817
Trustee
fees
459
$
11,217
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
$
5,296
$
394
$
296
$
(88
)
$
(1,002
)
$
4,304
$
—
$
—
RIF
Global
Real
Estate
Securities
Fund
5,226
310
413
(24
)
(896
)
4,203
15
—
RIF
U.S.
Small
Cap
Equity
Fund
15,830
1,748
1,475
(429
)
(2,539
)
13,135
8
341
RIF
U.S.
Strategic
Equity
Fund
31,784
403
5,095
(368
)
(642
)
26,082
67
268
RIC
Unconstrained
Total
Return
Fund
33,932
11,144
5,374
(430
)
(1,444
)
37,828
173
—
RIF
Strategic
Bond
Fund
51,935
835
22,444
855
361
31,542
369
—
RIC
Emerging
Markets
Fund
15,996
425
1,140
22
(2,296
)
13,007
—
—
RIC
Global
Equity
Fund
39,685
87
3,612
(650
)
(3,131
)
32,379
—
—
RIF
International
Developed
Markets
Fund
31,650
901
1,667
(249
)
(4,795
)
25,840
110
—
RIC
Multi-Strategy
Income
Fund
26,321
102
3,296
(482
)
(1,246
)
21,399
26
—
U.S.
Cash
Management
Fund
2,722
56,737
50,201
1
(1
)
9,258
10
—
$
260,377
$
73,086
$
95,013
$
(1,842
)
$
(17,631
)
$
218,977
$
778
$
609
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
218,928,320
$
208,391
$
(365,025)
$
(156,634)
Russell
Investment
Funds
Growth
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
Growth
Strategy
Fund
33
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2020
$
909
.10
$
1,024
.12
Expenses
Paid
During
Period*
$
0
.71
$
0
.75
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.15%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/366
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
Growth
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
94.2%
Alternative
-
3.8%
RIC
Commodity
Strategies
Fund
Class
Y
811,605
3,360
RIF
Global
Real
Estate
Securities
Fund
267,497
3,328
6,688
Domestic
Equities
-
30.2%
RIF
U.S.
Small
Cap
Equity
Fund
1,354,208
15,506
RIF
U.S.
Strategic
Equity
Fund
2,409,477
37,684
53,190
Fixed
Income
-
14.8%
RIC
Unconstrained
Total
Return
Fund
Class
Y
2,807,256
26,079
International
Equities
-
35.8%
RIC
Emerging
Markets
Fund
Class
Y
712,781
11,925
RIC
Global
Equity
Fund
Class
Y
3,014,905
25,536
RIF
International
Developed
Markets
Fund
2,591,091
25,496
62,957
Multi-Asset
-
9.6%
RIC
Multi-Asset
Growth
Strategy
Fund
Class
Y
1,749,333
16,899
Total
Investments
in
Affiliated
Funds
(cost
$164,228)
165,813
Short-Term
Investments
-
3.1%
U.S.
Cash
Management
Fund(@)
5,406,394
(∞)
5,406
Total
Short-Term
Investments
(cost
$5,406)
5,406
Total
Investments
-
97.3%
(identified
cost
$169,634)
171,219
Other
Assets
and
Liabilities,
Net
-
2.7%
4,744
Net
Assets
-
100.0%
175,963
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
35
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Amsterdam
Index
Futures
14
EUR
1,567
07/20
10
CAC40
Euro
Index
Futures
80
EUR
3,931
07/20
3
DAX
Index
Futures
11
EUR
3,390
09/20
17
Dow
Jones
U.S.
Real
Estate
Index
Futures
60
USD
1,859
09/20
(30)
EURO
STOXX
50
Index
Futures
73
EUR
2,353
09/20
18
FTSE
100
Index
Futures
20
GBP
1,230
09/20
(8)
FTSE/MIB
Index
Futures
9
EUR
868
09/20
(17)
IBEX
35
Index
Futures
14
EUR
1,009
07/20
(28)
MSCI
EAFE
Index
Futures
24
USD
2,134
09/20
—
MSCI
Emerging
Markets
Index
Futures
68
USD
3,351
09/20
43
OMXS30
Index
Futures
56
SEK
9,331
07/20
43
S&P
500
E-Mini
Index
Futures
41
USD
6,335
09/20
106
S&P/TSX
60
Index
Futures
14
CAD
2,600
09/20
33
SPI
200
Index
Futures
14
AUD
2,062
09/20
7
TOPIX
Index
Futures
26
JPY
405,209
09/20
(166)
United
States
Treasury
Long
Bond
Futures
11
USD
1,964
09/20
50
Short
Positions
NASDAQ
100
E-Mini
Index
Futures
59
USD
11,973
09/20
(624)
Russell
2000
E-Mini
Index
Futures
54
USD
3,882
09/20
(104)
S&P
Financial
Select
Sector
Index
Futures
12
USD
854
09/20
30
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(617)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
USD
498
CAD
668
09/16/20
(6)
Citigroup
USD
2,093
CNY
14,900
09/16/20
6
Citigroup
USD
781
JPY
83,623
09/16/20
(6)
Citigroup
AUD
113
USD
79
09/16/20
1
Citigroup
CHF
388
USD
411
09/16/20
1
Citigroup
EUR
2,008
USD
2,288
09/16/20
28
Citigroup
GBP
1,451
USD
1,851
09/16/20
54
Citigroup
HKD
893
USD
115
09/16/20
—
Citigroup
KRW
233,270
USD
194
09/16/20
(1)
Citigroup
MXN
760
USD
34
09/17/20
2
Citigroup
SEK
620
USD
67
09/16/20
1
Citigroup
SGD
55
USD
40
09/16/20
—
Citigroup
ZAR
133
USD
8
09/16/20
—
JPMorgan
Chase
USD
498
CAD
668
09/16/20
(6)
JPMorgan
Chase
USD
781
JPY
83,623
09/16/20
(5)
JPMorgan
Chase
AUD
113
USD
79
09/16/20
1
JPMorgan
Chase
CHF
388
USD
411
09/16/20
1
JPMorgan
Chase
EUR
2,008
USD
2,288
09/16/20
28
JPMorgan
Chase
GBP
1,451
USD
1,851
09/16/20
52
JPMorgan
Chase
HKD
893
USD
115
09/16/20
—
JPMorgan
Chase
MXN
760
USD
34
09/17/20
2
JPMorgan
Chase
SEK
620
USD
67
09/16/20
1
JPMorgan
Chase
SGD
55
USD
40
09/16/20
—
JPMorgan
Chase
ZAR
133
USD
8
09/16/20
—
Royal
Bank
of
Canada
USD
499
CAD
668
09/16/20
(7)
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
36
Growth
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Royal
Bank
of
Canada
USD
781
JPY
83,623
09/16/20
(5)
Royal
Bank
of
Canada
AUD
113
USD
79
09/16/20
1
Royal
Bank
of
Canada
CHF
388
USD
411
09/16/20
1
Royal
Bank
of
Canada
EUR
2,008
USD
2,290
09/16/20
30
Royal
Bank
of
Canada
GBP
1,451
USD
1,856
09/16/20
58
Royal
Bank
of
Canada
HKD
893
USD
115
09/16/20
—
Royal
Bank
of
Canada
MXN
760
USD
34
09/17/20
2
Royal
Bank
of
Canada
SEK
620
USD
67
09/16/20
1
Royal
Bank
of
Canada
SGD
55
USD
40
09/16/20
—
Royal
Bank
of
Canada
ZAR
133
USD
8
09/16/20
—
State
Street
USD
39
RUB
2,680
09/16/20
(1)
State
Street
TWD
28,550
USD
971
09/16/20
(11)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
223
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
Investment
Grade
Index
Goldman
Sachs
Purchase
USD
5,300
(1.000%)
(2)
06/20/25
102
(165)
(63)
Total
Open
Credit
Indices
Contracts
(å)
102
(165)
(63)
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
$
165,813
$
—
$
—
$
—
$
165,813
94.2
Short-Term
Investments
—
—
—
5,406
5,406
3.1
Total
Investments
165,813
—
—
5,406
171,219
97.3
Other
Assets
and
Liabilities,
Net
2.7
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
360
—
—
—
360
0.2
Foreign
Currency
Exchange
Contracts
—
27
1
—
—
27
1
0.2
'
Liabilities
Futures
Contracts
(977)
—
—
—
(977)
(0.6)
Foreign
Currency
Exchange
Contracts
—
(48
)
—
—
(4
8
)
(—)*
Credit
Default
Swap
Contracts
—
(63)
—
—
(63)
(—)*
Total
Other
Financial
Instruments
**
$
(617)
$
160
$
—
$
—
$
(457)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
37
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
38
Growth
Strategy
Fund
Russell
Investment
Funds
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
27
1
$
—
Variation
margin
on
futures
contracts*
310
—
—
50
Total
$
310
$
—
$
27
1
$
50
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
977
$
—
$
—
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
48
—
Credit
default
swap
contracts,
at
fair
value
—
63
—
—
Total
$
977
$
63
$
48
$
—
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
(2,055)
$
—
$
—
$
—
Credit
default
swap
contracts
—
781
—
—
Foreign
currency
exchange
contracts
—
—
52
—
Total
$
(3,906
)
$
7
81
$
52
$
—
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
46
$
—
$
—
$
—
Credit
default
swap
contracts
—
17
2
—
—
Foreign
currency
exchange
contracts
—
—
315
—
Total
$
46
$
17
2
$
31
5
$
—
*
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
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
39
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
271
$
—
$
271
Total
Financial
and
Derivative
Assets
271
—
271
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
271
$
—
$
271
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
$
92
$
12
$
—
$
80
JPMorgan
Chase
8
6
11
—
7
5
Royal
Bank
of
Canada
93
12
—
81
Total
$
27
1
$
35
$
—
$
23
6
Russell
Investment
Funds
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
40
Growth
Strategy
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
48
$
—
$
48
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
63
—
63
Total
Financial
and
Derivative
Liabilities
111
—
111
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(6
3
)
—
(6
3
)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
4
8
$
—
$
4
8
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Citigroup
$
12
$
12
$
—
$
—
JPMorgan
Chase
11
11
—
—
Royal
Bank
of
Canada
12
12
—
—
State
Street
1
3
—
—
1
3
Total
$
4
8
$
35
$
—
$
1
3
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
41
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
169,634
Investments,
at
fair
value(>)
...........................................................................................................................................................
171,219
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
271
Receivables:
Dividends
and
interest
.......................................................................................................................................................
1
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Investments
sold
................................................................................................................................................................
238
Fund
shares
sold
................................................................................................................................................................
1
From
broker(a)(b)
...............................................................................................................................................................
5,269
Prepaid
expenses
...........................................................................................................................................................................
1
Total
assets
.................................................................................................................................................
177,001
Liabilities
Payables:
Due
to
custodian
................................................................................................................................................................
4
Fund
shares
redeemed
.......................................................................................................................................................
239
Accrued
fees
to
affiliates
....................................................................................................................................................
9
Other
accrued
expenses
.....................................................................................................................................................
60
Variation
margin
on
futures
contracts
.................................................................................................................................
615
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
48
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
63
Total
liabilities
.............................................................................................................................................
1,038
Net
Assets
............................................................................................................................................................
$
175,963
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
42
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
(4,44
2
)
Shares
of
beneficial
interest
...........................................................................................................................................................
206
Additional
paid-in
capital
..............................................................................................................................................................
180,199
Net
Assets
............................................................................................................................................................
$
175,963
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:(#)
..........................................................................................................................................................
$
8.56
Net
assets
...............................................................................................................................................................................
$
175,963,208
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
20,567,308
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
102
(>)
Investments
in
affiliated
funds
$
171,219
(a)
Receivable
from
Broker
for
Futures
$
5,119
(b)
Receivable
from
Broker
for
Swaps
$
150
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
43
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
442
Expenses
Advisory
fees
....................................................................................................................................................................
178
Administrative
fees
...........................................................................................................................................................
38
Custodian
fees
...................................................................................................................................................................
28
Transfer
agent
fees
............................................................................................................................................................
4
Professional
fees
...............................................................................................................................................................
25
Trustees’
fees
....................................................................................................................................................................
4
Printing
fees
......................................................................................................................................................................
18
Miscellaneous
...................................................................................................................................................................
5
Expenses
before
reductions
..............................................................................................................................................
300
Expense
reductions
...........................................................................................................................................................
(166)
Net
expenses
.................................................................................................................................................................................
134
Net
investment
income
(loss)
........................................................................................................................................................
308
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(1,851)
Futures
contracts
..............................................................................................................................................................
(2,055)
Foreign
currency
exchange
contracts
................................................................................................................................
52
Credit
default
swap
contracts
............................................................................................................................................
781
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
784
Net
realized
gain
(loss)
..................................................................................................................................................................
(2,289)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(17,34
4
)
Futures
contracts
..............................................................................................................................................................
46
Foreign
currency
exchange
contracts
................................................................................................................................
315
Credit
default
swap
contracts
............................................................................................................................................
17
2
Foreign
currency-related
transactions
...............................................................................................................................
(2
3
)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(16,834)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(19,123)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(18,815)
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
44
Growth
Strategy
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
308
$
4,970
Net
realized
gain
(loss)
......................................................................................................................
(2,289)
4,892
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(16,834)
23,360
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(18,815)
33,222
Distributions
To
shareholders
.................................................................................................................................
(6,226)
(12,311)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(6,226)
(12,311)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(4,405)
(5,544)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(29,446)
15,367
Net
Assets
Beginning
of
period
.................................................................................................................................
205,409
190,042
End
of
period
..........................................................................................................................................
$
175,963
$
205,409
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
327
$
2,650
453
$
4,145
Proceeds
from
reinvestment
of
distributions
671
6,226
1,362
12,311
Payments
for
shares
redeemed
(1,553)
(13,281)
(2,393)
(22,000)
Total
increase
(decrease)
(555)
$
(4,405)
(578)
$
(5,544)
Russell
Investment
Funds
Growth
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
46
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2020(1)
9.72
.01
(.87)
(.86)
(.14)
(.16)
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
47
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c
)(f)
%
Portfolio
Turnover
Rate
(c)
(.30)
8.56
(9.09)
175,963
.34
.15
.35
9
(.58)
9.72
18.06
205,409
.33
.15
2.48
33
(.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.
48
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020
,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
1,869
Administration
fees
6,221
Transfer
agent
fees
644
Trustee
fees
326
$
9,060
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
$
4,123
$
309
$
231
$
(88
)
$
(753
)
$
3,360
$
—
$
—
RIF
Global
Real
Estate
Securities
Fund
4,060
260
283
6
(715
)
3,328
11
—
RIF
U.S.
Small
Cap
Equity
Fund
18,437
1,898
1,339
(340
)
(3,150
)
15,506
14
398
RIF
U.S.
Strategic
Equity
Fund
45,335
907
6,951
(685
)
(922
)
37,684
91
386
RIC
Unconstrained
Total
Return
Fund
20,157
10,501
3,557
(292
)
(730
)
26,079
107
—
RIF
Strategic
Bond
Fund
12,025
138
12,174
604
(593
)
—
84
—
RIC
Emerging
Markets
Fund
14,532
291
818
(27
)
(2,053
)
11,925
—
—
RIC
Global
Equity
Fund
30,836
250
2,527
(458
)
(2,565
)
25,536
—
—
RIF
International
Developed
Markets
Fund
30,738
760
1,077
(163
)
(4,762
)
25,496
107
—
RIC
Multi-Asset
Growth
Strategy
Fund
20,320
141
2,052
(409
)
(1,101
)
16,899
22
—
U.S.
Cash
Management
Fund
1,621
34,428
30,644
1
—
5,406
6
—
$
202,184
$
49,883
$
61,653
$
(1,851
)
$
(17,344
)
$
171,219
$
442
$
784
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
173,772,778
$
16,365,387
$
(19,375,413)
$
(3,010,026)
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2020
(Unaudited)
Equity
Growth
Strategy
Fund
49
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2020
to
June
30,
2020
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2020
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2020
$
878
.00
$
1,024
.12
Expenses
Paid
During
Period*
$
0
.70
$
0
.75
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.15%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/366
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
Equity
Growth
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
87.8%
Alternative
-
4.4%
RIC
Commodity
Strategies
Fund
Class
Y
169,613
702
RIF
Global
Real
Estate
Securities
Fund
83,686
1,041
1,743
Domestic
Equities
-
30.8%
RIF
U.S.
Small
Cap
Equity
Fund
372,554
4,266
RIF
U.S.
Strategic
Equity
Fund
501,211
7,839
12,105
Fixed
Income
-
9.7%
RIC
Unconstrained
Total
Return
Fund
Class
Y
409,837
3,807
International
Equities
-
39.3%
RIC
Emerging
Markets
Fund
Class
Y
169,447
2,835
RIC
Global
Equity
Fund
Class
Y
872,090
7,387
RIF
International
Developed
Markets
Fund
533,934
5,254
15,476
Multi-Asset
-
3.6%
RIC
Multi-Asset
Growth
Strategy
Fund
Class
Y
144,738
1,398
Total
Investments
in
Affiliated
Funds
(cost
$33,461)
34,529
Short-Term
Investments
-
8.5%
U.S.
Cash
Management
Fund(@)
3,324,386
(∞)
3,324
Total
Short-Term
Investments
(cost
$3,324)
3,324
Total
Investments
-
96.3%
(identified
cost
$36,785)
37,853
Other
Assets
and
Liabilities,
Net
-
3.7%
1,466
Net
Assets
-
100.0%
39,319
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
51
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Amsterdam
Index
Futures
4
EUR
448
07/20
3
CAC40
Euro
Index
Futures
20
EUR
983
07/20
1
DAX
Index
Futures
3
EUR
924
09/20
5
Dow
Jones
U.S.
Real
Estate
Index
Futures
66
USD
2,045
09/20
(34)
EURO
STOXX
50
Index
Futures
18
EUR
580
09/20
5
FTSE
100
Index
Futures
7
GBP
430
09/20
(3)
FTSE/MIB
Index
Futures
2
EUR
193
09/20
(4)
IBEX
35
Index
Futures
3
EUR
216
07/20
(6)
MSCI
EAFE
Index
Futures
12
USD
1,067
09/20
(1)
OMXS30
Index
Futures
13
SEK
2,166
07/20
10
S&P
400
E-Mini
Index
Futures
2
USD
356
09/20
9
S&P
500
E-Mini
Index
Futures
22
USD
3,399
09/20
56
SPI
200
Index
Futures
3
AUD
442
09/20
2
TOPIX
Index
Futures
4
JPY
62,339
09/20
(25)
United
States
Treasury
Long
Bond
Futures
5
USD
893
09/20
23
Short
Positions
MSCI
Emerging
Markets
Index
Futures
25
USD
1,232
09/20
(18)
NASDAQ
100
E-Mini
Index
Futures
16
USD
3,247
09/20
(169)
Russell
2000
E-Mini
Index
Futures
23
USD
1,653
09/20
(46)
S&P
Financial
Select
Sector
Index
Futures
12
USD
854
09/20
29
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(163)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
USD
310
AUD
443
09/16/20
(5)
Citigroup
USD
169
CAD
227
09/16/20
(2)
Citigroup
USD
492
CNY
3,500
09/16/20
1
Citigroup
USD
354
JPY
37,862
09/16/20
(3)
Citigroup
USD
7
ZAR
115
09/16/20
—
Citigroup
BRL
980
USD
197
09/16/20
18
Citigroup
CHF
223
USD
236
09/16/20
1
Citigroup
EUR
655
USD
746
09/16/20
9
Citigroup
GBP
420
USD
535
09/16/20
15
Citigroup
HKD
360
USD
46
09/16/20
—
Citigroup
KRW
116,630
USD
97
09/16/20
—
Citigroup
MXN
2,025
USD
91
09/17/20
4
Citigroup
SEK
375
USD
41
09/16/20
—
Citigroup
SGD
22
USD
16
09/16/20
—
Royal
Bank
of
Canada
USD
310
AUD
443
09/16/20
(5)
Royal
Bank
of
Canada
USD
169
CAD
227
09/16/20
(2)
Royal
Bank
of
Canada
USD
353
JPY
37,862
09/16/20
(2)
Royal
Bank
of
Canada
USD
7
ZAR
115
09/16/20
—
Royal
Bank
of
Canada
CHF
223
USD
236
09/16/20
1
Royal
Bank
of
Canada
EUR
655
USD
747
09/16/20
10
Royal
Bank
of
Canada
GBP
420
USD
537
09/16/20
16
Royal
Bank
of
Canada
HKD
360
USD
46
09/16/20
—
Royal
Bank
of
Canada
MXN
2,025
USD
92
09/17/20
4
Royal
Bank
of
Canada
SEK
375
USD
41
09/16/20
—
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
52
Equity
Growth
Strategy
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Royal
Bank
of
Canada
SGD
22
USD
16
09/16/20
—
State
Street
USD
22
RUB
1,490
09/16/20
(1)
State
Street
INR
12,940
USD
170
09/16/20
—
State
Street
TWD
9,520
USD
324
09/16/20
(3)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
56
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
Investment
Grade
Index
Bank
of
America
Sell
USD
1,615
5.000%
(2)
06/20/25
(68)
59
(9)
Total
Open
Credit
Indices
Contracts
(å)
(68)
59
(9)
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
$
34,529
$
—
$
—
$
—
$
34,529
87.8
Short-Term
Investments
—
—
—
3,324
3,324
8.5
Total
Investments
34,529
—
—
3,324
37,853
96.3
Other
Assets
and
Liabilities,
Net
3.7
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
143
—
—
—
143
0.4
Foreign
Currency
Exchange
Contracts
—
79
—
—
79
0.2
'
Liabilities
Futures
Contracts
(306)
—
—
—
(306)
(0.8)
Foreign
Currency
Exchange
Contracts
—
(23)
—
—
(23)
(0.1)
Credit
Default
Swap
Contracts
—
(9)
—
—
(9)
(—)
*
Total
Other
Financial
Instruments
**
$
(163)
$
47
$
—
$
—
$
(116)
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
between
Levels
1,
2
and
3
during
the
period
ended
June
30,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
53
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
—
$
79
$
—
Variation
margin
on
futures
contracts*
120
—
—
23
Total
$
120
$
—
$
79
$
23
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
306
$
—
$
—
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
23
—
Credit
default
swap
contracts,
at
fair
value
—
9
—
—
Total
$
306
$
9
$
23
$
—
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
(621)
$
—
$
—
$
—
Credit
default
swap
contracts
—
(26)
—
—
Foreign
currency
exchange
contracts
—
—
73
—
Total
$
(621)
$
(26)
$
73
$
—
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(21)
$
—
$
—
$
22
Credit
default
swap
contracts
—
99
—
—
Foreign
currency
exchange
contracts
—
—
74
—
Total
$
(21)
$
99
$
74
$
22
*
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
Equity
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
54
Equity
Growth
Strategy
Fund
Amounts
in
thousands
word
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
79
$
—
$
79
Total
Financial
and
Derivative
Assets
79
—
79
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
79
$
—
$
79
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
$
48
$
10
$
—
$
38
Royal
Bank
of
Canada
3
1
10
—
2
1
Total
$
79
$
20
$
—
$
59
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2020
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
55
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
$
23
$
—
$
23
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
9
—
9
Total
Financial
and
Derivative
Liabilities
32
—
32
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(
9
)
—
(
9
)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
2
3
$
—
$
2
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
Citigroup
$
10
$
10
$
—
$
—
Royal
Bank
of
Canada
10
10
—
—
State
Street
3
—
—
3
Total
$
2
3
$
20
$
—
$
3
^ 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.
56
Equity
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
36,785
Investments,
at
fair
value(>)
...........................................................................................................................................................
37,853
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
79
Receivables:
Dividends
and
interest
.......................................................................................................................................................
6
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Fund
shares
sold
................................................................................................................................................................
51
From
affiliates
....................................................................................................................................................................
6
From
broker(a)(b)
...............................................................................................................................................................
1,613
Total
assets
.................................................................................................................................................
39,609
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
28
Fund
shares
redeemed
.......................................................................................................................................................
2
2
Accrued
fees
to
affiliates
....................................................................................................................................................
2
Other
accrued
expenses
.....................................................................................................................................................
4
4
Variation
margin
on
futures
contracts
.................................................................................................................................
162
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
23
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
9
Total
liabilities
.............................................................................................................................................
290
Net
Assets
............................................................................................................................................................
$
39,319
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
57
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2020
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
(3,095)
Shares
of
beneficial
interest
...........................................................................................................................................................
51
Additional
paid-in
capital
..............................................................................................................................................................
42,363
Net
Assets
............................................................................................................................................................
$
39,319
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
7.72
Net
assets
...............................................................................................................................................................................
$
39,318,683
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
5,091,534
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(68)
(>)
Investments
in
affiliated
funds
$
37,853
(a)
Receivable
from
Broker
for
Futures
$
1,387
(b)
Receivable
from
Broker
for
Swaps
$
226
(#)
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.
58
Equity
Growth
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2020
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
82
Expenses
Advisory
fees
....................................................................................................................................................................
41
Administrative
fees
...........................................................................................................................................................
9
Custodian
fees
...................................................................................................................................................................
26
Transfer
agent
fees
...........................................................................................................................................................
1
Professional
fees
...............................................................................................................................................................
20
Trustees’
fees
....................................................................................................................................................................
1
Printing
fees
......................................................................................................................................................................
7
Miscellaneous
...................................................................................................................................................................
4
Expenses
before
reductions
..............................................................................................................................................
10
9
Expense
reductions
...........................................................................................................................................................
(
78
)
Net
expenses
.................................................................................................................................................................................
31
Net
investment
income
(loss)
........................................................................................................................................................
51
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(1,
934
)
Futures
contracts
..............................................................................................................................................................
(621)
Foreign
currency
exchange
contracts
................................................................................................................................
73
Credit
default
swap
contracts
............................................................................................................................................
(26)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
219
Net
realized
gain
(loss)
..................................................................................................................................................................
(2,
289
)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(4,
153
)
Futures
contracts
..............................................................................................................................................................
1
Foreign
currency
exchange
contracts
................................................................................................................................
74
Credit
default
swap
contracts
............................................................................................................................................
99
Foreign
currency-related
transactions
...............................................................................................................................
(7)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(3,
986
)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(6,275)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(6,224)
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
59
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2020
(Unaudited)
Fiscal
Year
Ended
December
31,
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
51
$
1,140
Net
realized
gain
(loss)
......................................................................................................................
(2,
289
)
1,855
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(3,
986
)
5,903
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(6,224)
8,898
Distributions
To
shareholders
.................................................................................................................................
(2,147)
(3,114)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(2,147)
(3,114)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(1,626)
(4,098)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(9,997)
1,686
Net
Assets
Beginning
of
period
.................................................................................................................................
49,316
47,630
End
of
period
..........................................................................................................................................
$
39,319
$
49,316
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2020
and
December
31,
2019
were
as
follows:
2020
(Unaudited)
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
257
$
2,160
250
$
2,157
Proceeds
from
reinvestment
of
distributions
247
2,147
369
3,114
Payments
for
shares
redeemed
(773)
(5,933)
(1,094)
(9,369)
Total
increase
(decrease)
(269)
$
(1,626)
(475)
$
(4,098)
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
60
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2020(1)
9.20
.01
(1.09)
(1.08)
(.15)
(.25)
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
61
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.40)
7.72
(12.20)
39,319
.52
.15
.25
7
(.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.
62
Equity
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2020,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Administration
fees
$
1,381
Transfer
agent
fees
143
Trustee
fees
122
$
1,646
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
$
976
$
148
$
214
$
(63
)
$
(145
)
$
702
$
—
$
—
RIF
Global
Real
Estate
Securities
Fund
1,449
92
238
(26
)
(236
)
1,041
4
—
RIF
U.S.
Small
Cap
Equity
Fund
5,828
494
818
(235
)
(1,003
)
4,266
3
128
RIF
U.S.
Strategic
Equity
Fund
10,735
319
2,568
(458
)
(189
)
7,839
19
91
RIC
Unconstrained
Total
Return
Fund
5,284
698
1,834
(126
)
(215
)
3,807
23
—
RIC
Emerging
Markets
Fund
3,945
150
617
(104
)
(539
)
2,835
—
—
RIC
Global
Equity
Fund
10,215
309
1,895
(596
)
(646
)
7,387
2
—
RIF
International
Developed
Markets
Fund
7,273
463
1,147
(242
)
(1,093
)
5,254
26
—
RIC
Multi-Asset
Growth
Strategy
Fund
1,927
107
465
(84
)
(87
)
1,398
—
—
U.S.
Cash
Management
Fund
958
18,432
16,066
—
—
3,324
5
—
$
48,590
$
21,212
$
25,862
$
(1,934
)
$
(4,153
)
$
37,853
$
82
$
219
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
38,467,184
$
692,065
$
(1,423,792)
$
(731,727)
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Schedules
of
Investments
—
June
30,
2020
(Unaudited)
Notes
to
Schedules
of
Investments
63
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
Schedules
of
Investments,
continued
—
June
30,
2020
(Unaudited)
64
Notes
to
Schedules
of
Investments
Foreign
Currency
Abbreviations:
ARS
-
Argentine
peso
HUF
-
Hungarian
forint
PKR
-
Pakistani
rupee
AUD
-
Australian
dollar
IDR
-
Indonesian
rupiah
PLN
-
Polish
zloty
BRL
-
Brazilian
real
ILS
-
Israeli
shekel
RUB
-
Russian
ruble
CAD
-
Canadian
dollar
INR
-
Indian
rupee
SEK
-
Swedish
krona
CHF
-
Swiss
franc
ISK
-
Icelandic
krona
SGD
-
Singapore
dollar
CLP
-
Chilean
peso
ITL
-
Italian
lira
SKK
-
Slovakian
koruna
CNY
-
Chinese
yuan
renminbi
JPY
-
Japanese
yen
THB
-
Thai
baht
COP
-
Colombian
peso
KES
-
Kenyan
schilling
TRY
-
Turkish
lira
CRC
-
Costa
Rican
colon
KRW
-
South
Korean
won
TWD
-
Taiwanese
dollar
CZK
-
Czech
koruna
MXN
-
Mexican
peso
USD
-
United
States
dollar
DKK
-
Danish
krone
MYR
–
Malaysian
ringgit
VEB
-
Venezuelan
bolivar
EGP
-
Egyptian
pound
NOK
-
Norwegian
krone
VND
-
Vietnamese
dong
EUR
-
Euro
NZD
-
New
Zealand
dollar
ZAR
-
South
African
rand
GBP
-
British
pound
sterling
PEN
-
Peruvian
nuevo
sol
HKD
–
Hong
Kong
dollar
PHP
–
Philippine
peso
Russell
Investment
Funds
LifePoints
®
Variable
Target
Portfolio
Series
Notes
to
Financial
Highlights
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Highlights
65
(1)
For
the
period
ended
June
30,
2020
(Unaudited).
(a)
Average
daily
shares
outstanding
were
used
for
this
calculation.
(b)
Recognition
of
net
investment
income
by
the
Fund
is
affected
by
the
timing
of
the
declaration
of
dividends
by
the
Underlying
Funds
in
which
the
Fund
invests.
(c)
Periods
less
than
one
year
are
not
annualized.
(d)
The
ratios
for
periods
less
than
one
year
are
annualized.
(e)
The
calculation
includes
only
those
expenses
charged
directly
to
the
Fund
and
does
not
include
expenses
charged
to
the
Underlying
Funds
in
which
the
Fund
invests.
(f)
May
reflect
amounts
waived
and
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(g)
Less
than
$.01
per
share.
(h)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements
—
June
30,
2020
(Unaudited)
66
Notes
to
Financial
Statements
Organization
Russell
Investment
Funds
(the
“Investment
Company”
or
“RIF”)
is
a
series
investment
company
with
nine
different
investment
portfolios
referred
to
as
funds
(each
a
“Fund”
and
collectively
the
“Funds”).
These
financial
statements
report
on
four
of
these
Funds.
The
Investment
Company
provides
the
investment
base
for
one
or
more
variable
insurance
products
issued
by
one
or
more
insurance
companies.
These
Funds
are
offered
at
net
asset
value
(“NAV”)
to
qualified
insurance
company
separate
accounts
offering
variable
insurance
products.
The
Investment
Company
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(“Investment
Company
Act”),
as
an
open-end
management
investment
company.
It
is
organized
and
operated
as
a
Massachusetts
business
trust
under
a
Second
Amended
and
Restated
Master
Trust
Agreement
dated
March
1,
2018,
as
amended
(“Master
Trust
Agreement”),
and
the
provisions
of
Massachusetts
law
governing
the
operation
of
a
Massachusetts
business
trust.
The
Investment
Company’s
Master
Trust
Agreement
permits
the
Board
of
Trustees
(the
“Board”)
to
issue
an
unlimited
number
of
shares
of
beneficial
interest.
Each
of
the
Funds
is
diversified.
Under
the
Investment
Company
Act,
a
diversified
company
is
defined
as
a
management
company
which
meets
the
following
requirements:
at
least
75%
of
the
value
of
its
total
assets
is
represented
by
cash
and
cash
equivalents
(including
receivables),
government
securities,
securities
of
other
investment
companies,
and
other
securities
for
the
purposes
of
this
calculation
limited
in
respect
of
any
one
issuer
to
an
amount
not
greater
in
value
than
five
percent
of
the
value
of
the
total
assets
of
such
management
company
and
to
not
more
than
10%
of
the
outstanding
voting
securities
of
such
issuer.
Each
of
the
Funds
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
directly
manage
Fund
assets
and
utilizes
quantitative
and/or
rules-based
processes
and
qualitative
analysis
to
assess
Fund
characteristics
and
invest
in
securities
and
instruments
which
provide
the
desired
exposures.
In
connection
with
these
investment
strategies,
the
Funds
may
invest
in
derivative
instruments
and
may
use
derivatives
to
take
both
long
and
short
positions.
The
Funds
may
hold
cash
in
connection
with
these
investments.
A
Fund
usually,
but
not
always,
pursues
a
strategy
of
being
fully
invested
by
exposing
its
cash
to
the
performance
of
segments
of
the
global
equity
market
by
purchasing
index
futures
contracts
(also
known
as
"equitization").
The
following
table
shows
each
Funds'
approximate
expected
target
strategic
asset
allocation
to
equity,
fixed
income,
multi-asset,
and
alternative
asset
classes
effective
May
1,
2020.
As
of
June
30,
2020,
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
Investment
Grade
Bond,
RIC
Opportunistic
Credit,
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-Asset
Growth
Strategy
and
RIC
Multi-Strategy
Income
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.
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.
*
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
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
67
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
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").
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
(or
reported
on
the
NASDAQ
national
market),
are
stated
at
the
last
reported
sales
price
on
the
day
of
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
68
Notes
to
Financial
Statements
valuation
or
official
closing
price,
as
applicable.
To
the
extent
these
securities
are
actively
traded,
and
valuation
adjustments
are
not
applied,
they
are
categorized
as
Level
1
of
the
fair
value
hierarchy.
Investments
in
investment
funds
that
are
not
traded
on
a
national
securities
exchange
(or
reported
on
the
NASDAQ
national
market)
will
be
valued
based
upon
the
NAV
of
such
investments.
Derivative
instruments
are
instruments
such
as
foreign
currency
contracts,
futures
contracts,
options
contracts,
or
swap
agreements
that
derive
their
value
from
underlying
asset
prices,
indices,
reference
rates,
and
other
inputs
or
a
combination
of
these
factors.
Derivatives
may
be
classified
into
two
groups
depending
upon
the
way
that
they
are
traded:
privately
traded
over-the-counter
(“OTC”)
derivatives
that
do
not
go
through
an
exchange
or
intermediary
and
exchange-traded
derivatives
that
are
traded
through
specialized
derivatives
exchanges
or
other
regulated
exchanges.
OTC
derivatives
are
normally
valued
on
the
basis
of
broker
dealer
quotations
or
pricing
service
providers.
Depending
on
the
product
and
the
terms
of
the
transaction,
the
value
of
the
derivative
instrument
can
be
estimated
by
a
pricing
service
provider
using
a
series
of
techniques,
including
simulation
pricing
models.
The
pricing
models
use
inputs
that
are
observed
from
actively
quoted
markets
such
as
issuer
details,
indices,
spreads,
interest
rates,
yield
curves,
dividends
and
exchange
rates.
OTC
derivatives
that
use
these
and
similar
valuation
techniques
and
inputs
as
described
above
are
categorized
as
Level
2
of
the
fair
value
hierarchy,
with
the
exception
of
foreign
currency
spot
contracts
which
are
categorized
as
Level
1
of
the
fair
value
hierarchy.
OTC
derivatives
that
use
broker
dealer
quotations
are
categorized
as
level
3
of
the
fair
value
hierarchy.
Exchange-traded
derivatives
are
valued
based
on
the
last
reported
sales
price
on
the
day
of
valuation
and
are
categorized
as
Level
1
of
the
fair
value
hierarchy.
Centrally
cleared
swaps
listed
or
traded
on
a
multilateral
or
trade
facility
platform,
such
as
a
registered
exchange,
are
valued
at
the
daily
settlement
price
determined
by
the
respective
exchange.
For
centrally
cleared
credit
default
swaps,
the
clearing
facility
requires
its
members
to
provide
actionable
levels
across
complete
term
structures.
These
levels
along
with
external
third-
party
prices
are
used
to
produce
daily
settlement
prices.
These
securities
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Centrally
cleared
interest
rate
swaps
are
valued
using
a
pricing
model
that
references
the
underlying
rates
including
the
Overnight
Index
Swap
("OIS")
rate
and
London
Interbank
Offered
Rate
(“LIBOR”)
forward
rate
to
produce
the
daily
settlement
price.
These
securities
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
For
movements
between
the
levels
within
the
fair
value
hierarchy,
the
Funds
have
adopted
a
policy
of
recognizing
the
transfers
as
of
period
end.
For
the
period
ended
June
30,
2020,
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.
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
69
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.
The
Funds
comply
with
the
authoritative
guidance
for
uncertainty
in
income
taxes
which
requires
management
to
determine
whether
a
tax
position
of
the
Funds
is
more
likely
than
not
to
be
sustained
upon
examination,
including
resolution
of
any
related
appeals
or
litigation
processes,
based
on
the
technical
merits
of
the
position.
For
tax
positions
meeting
the
more
likely
than
not
threshold,
the
tax
amount
recognized
in
the
financial
statements
is
reduced
by
the
largest
benefit
that
has
a
greater
than
50%
likelihood
of
being
realized
upon
ultimate
settlement
with
the
relevant
taxing
authority.
Management
determined
that
no
accruals
need
to
be
made
in
the
financial
statements
due
to
uncertain
tax
positions.
Management
continually
reviews
and
adjusts
the
Funds’
liability
for
income
taxes
based
on
analyses
of
tax
laws
and
regulations,
as
well
as
their
interpretations,
and
other
relevant
factors.
Each
Fund
files
a
U.S.
tax
return.
At
June
30,
2020,
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,
2017
through
December
31,
2019,
no
examinations
are
in
progress
or
anticipated
at
this
time.
The
Funds
are
not
aware
of
any
tax
positions
for
which
it
is
reasonably
possible
that
the
total
amounts
of
unrecognized
tax
benefits
will
significantly
change
in
the
next
twelve
months.
Dividends
and
Distributions
to
Shareholders
Income
dividends,
capital
gain
distributions
and
return
of
capital,
if
any,
are
recorded
on
the
ex-dividend
date.
Income
dividends
are
generally
declared
and
paid
quarterly.
Capital
gain
distributions
are
generally
declared
and
paid
annually.
An
additional
distribution
may
be
paid
by
the
Funds
to
avoid
imposition
of
federal
income
and
excise
tax
on
any
remaining
undistributed
capital
gains
and
net
investment
income.
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,
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.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
70
Notes
to
Financial
Statements
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
Statements
of
Assets
and
Liabilities
as
Receivables
for
Variation
margin
on
futures
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
November
2019,
the
Securities
and
Exchange
Commission
("SEC")
proposed
new
regulations
applicable
to
a
mutual
fund's
use
of
derivatives.
If
adopted
as
proposed,
these
regulations
could
potentially
limit
or
impact
a
Fund's
ability
to
invest
in
derivatives
and
negatively
affect
the
Fund's
performance
and
ability
to
pursue
its
stated
investment
objective.
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
June
30,
2020,
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
71
of
counterparties
to
meet
the
terms
of
their
FX
contracts
and
are
generally
limited
to
the
amount
of
unrealized
gain
on
the
FX
contracts,
if
any,
that
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
For
the
period
ended
June
30,
2020,
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
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.
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,
2020
June
30,
2020
Moderate
Strategy
Fund
$
5,746,662
$
5,780,913
Balanced
Strategy
Fund
23,100,993
23,327,044
Growth
Strategy
Fund
21,406,205
21,539,379
Equity
Growth
Strategy
Fund
6,257,969
6,326,470
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2020
June
30,
2020
Moderate
Strategy
Fund
$
5,695,450
$
5,774,852
Balanced
Strategy
Fund
23,440,013
23,562,542
Growth
Strategy
Fund
21,784,086
21,796,203
Equity
Growth
Strategy
Fund
6,336,457
6,388,657
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
72
Notes
to
Financial
Statements
The
Funds
may
enter
into
a
swaption
(an
option
on
a
swap).
In
a
swaption,
in
exchange
for
an
option,
the
buyer
gains
the
right
but
not
the
obligation
to
enter
into
a
specified
swap
agreement
with
the
issuer
on
a
specified
future
date.
The
writer
of
the
contract
receives
the
premium
and
bears
the
risk
of
unfavorable
changes
in
the
preset
rate
on
the
underlying
swap.
For
the
period
ended
June
30,
2020,
the
Funds
purchased
or
sold
options
primarily
for
the
strategies
listed
below:
For
the
period
ended
June
30,
2020,
the
Funds
did
not
enter
into
any
options.
Futures
Contracts
The
Funds
may
invest
in
futures
contracts
(i.e.,
interest
rate,
foreign
currency
and
index
futures
contracts).
The
face
or
contract
value
of
these
instruments
reflect
the
extent
of
the
Funds’
exposure
to
off
balance
sheet
risk.
The
primary
risks
associated
with
the
use
of
futures
contracts
are
an
imperfect
correlation
between
the
change
in
fair
value
of
the
securities
held
by
the
Funds
and
the
prices
of
futures
contracts,
and
the
possibility
of
an
illiquid
market.
Upon
entering
into
a
futures
contract,
the
Funds
are
required
to
deposit
with
a
broker
an
amount,
termed
the
initial
margin,
which
typically
represents
5%
to
10%
of
the
purchase
price
indicated
in
the
futures
contract.
Payments
to
and
from
the
broker,
known
as
variation
margin,
are
typically
required
to
be
made
on
a
daily
basis
as
the
price
of
the
futures
contract
fluctuates.
Changes
in
initial
settlement
value
are
accounted
for
as
unrealized
appreciation
(depreciation)
until
the
contracts
are
terminated,
at
which
time
realized
gains
and
losses
are
recognized.
For
the
period
ended
June
30,
2020,
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
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
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
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,
2020
June
30,
2020
Moderate
Strategy
Fund
$
22,090,672
$
31,368,813
Balanced
Strategy
Fund
60,809,523
79,177,352
Growth
Strategy
Fund
47,520,098
56,705,705
Equity
Growth
Strategy
Fund
15,330,252
20,151,215
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
73
swap
agreements
are
a
counterparty
agreement
intended
to
expose
cash
to
markets
or
to
effect
investment
transactions
consistent
with
those
Funds’
investment
objectives
and
strategies.
Currency
swaps
are
a
counterparty
agreement
where
two
parties
exchange
specified
amounts
of
different
currencies
which
are
followed
by
each
paying
the
other
a
series
of
interest
payments
that
are
based
on
the
principal
cash
flow.
At
maturity
the
principal
amounts
are
returned.
The
Funds
generally
expect
to
enter
into
these
transactions
primarily
to
preserve
a
return
or
spread
on
a
particular
investment
or
portion
of
their
portfolios
or
to
protect
against
any
increase
in
the
price
of
securities
they
anticipate
purchasing
at
a
later
date,
or
for
return
enhancement.
Under
most
swap
agreements
entered
into
by
a
Fund,
the
parties'
obligations
are
determined
on
a
"net
basis".
The
net
amount
of
the
excess,
if
any,
of
the
Funds’
obligations
over
their
entitlements
with
respect
to
each
swap
will
be
accrued
on
a
daily
basis
and
an
amount
of
cash
or
liquid
assets
having
an
aggregate
NAV
at
least
equal
to
the
accrued
excess
will
be
segregated.
To
the
extent
that
the
Funds
enter
into
swaps
on
other
than
a
net
basis,
the
amount
maintained
in
a
segregated
account
will
be
the
full
amount
of
the
Funds’
obligations,
if
any,
with
respect
to
such
swaps,
accrued
on
a
daily
basis.
If
there
is
a
default
by
the
other
party
to
such
a
transaction,
the
Funds
will
have
contractual
remedies
pursuant
to
the
agreement
related
to
the
transaction.
A
Fund
may
not
receive
the
expected
amount
under
a
swap
agreement
if
the
other
party
to
the
agreement
defaults
or
becomes
bankrupt.
Credit
Default
Swaps
The
Funds
may
enter
into
credit
default
swaps.
A
credit
default
swap
can
refer
to
corporate
issues,
government
issues,
asset-backed
securities
or
an
index
of
assets,
each
known
as
the
reference
entity
or
underlying
asset.
Funds
may
act
as
either
the
buyer
or
the
seller
of
a
credit
default
swap
involving
one
party
making
a
stream
of
payments
to
another
party
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
default
or
other
credit
event.
Depending
upon
the
terms
of
the
contract,
the
credit
default
swap
may
be
closed
via
physical
settlement.
However,
due
to
the
possible
or
potential
instability
in
the
market,
there
is
a
risk
that
the
Funds
may
be
unable
to
deliver
the
underlying
debt
security
to
the
other
party
to
the
agreement.
Additionally,
the
Funds
may
not
receive
the
expected
amount
under
the
swap
agreement
if
the
other
party
to
the
agreement
defaults
or
becomes
bankrupt.
In
an
unhedged
credit
default
swap,
Funds
enter
into
a
credit
default
swap
without
owning
the
underlying
asset
or
debt
issued
by
the
reference
entity.
Credit
default
swaps
allow
Funds
to
acquire
or
reduce
credit
exposure
to
a
particular
issuer,
asset
or
basket
of
instruments.
As
the
seller
of
protection
in
a
credit
default
swap,
a
Fund
would
be
required
to
pay
the
par
or
other
agreed-upon
value
(or
otherwise
perform
according
to
the
swap
contract)
of
a
reference
debt
obligation
to
the
counterparty
in
the
event
of
a
default
(or
other
specified
credit
event)
and
the
counterparty
would
be
required
to
surrender
the
reference
debt
obligation.
In
return,
the
Fund
would
receive
from
the
counterparty
a
periodic
stream
of
payments
over
the
term
of
the
contract
provided
that
no
credit
event
has
occurred.
If
no
credit
event
occurs,
the
Fund
would
keep
the
stream
of
payments
and
would
have
no
payment
obligations.
As
a
seller
of
protection,
the
Fund
would
effectively
add
leverage
to
its
portfolio
because,
in
addition
to
its
total
net
assets,
that
Fund
would
be
subject
to
investment
exposure
on
the
notional
amount
of
the
swap.
The
Funds
may
also
purchase
protection
via
credit
default
swap
contracts
in
order
to
offset
the
risk
of
default
of
debt
securities
held
in
their
portfolios
or
to
take
a
short
position
in
a
debt
security,
in
which
case
the
Fund
would
function
as
the
counterparty
referenced
in
the
preceding
paragraph.
If
a
credit
event
occurs
and
cash
settlement
is
not
elected,
a
variety
of
other
deliverable
obligations
may
be
delivered
in
lieu
of
the
specific
referenced
obligation.
The
ability
to
deliver
other
obligations
may
result
in
a
cheapest-to-deliver
option
(the
buyer
of
protection’s
right
to
choose
the
deliverable
obligation
with
the
lowest
value
following
a
credit
event).
The
Funds
may
use
credit
default
swaps
to
provide
a
measure
of
protection
against
defaults
of
the
issuers
(i.e.,
to
reduce
risk
where
Funds
own
or
have
exposure
to
the
referenced
obligation)
or
to
take
an
active
long
or
short
position
with
respect
to
the
likelihood
(as
measured
by
the
credit
default
swap’s
spread)
of
a
particular
issuer’s
default.
Deliverable
obligations
for
credit
default
swaps
on
asset-backed
securities
in
most
instances
are
limited
to
the
specific
referenced
obligation
as
performance
for
asset-backed
securities
can
vary
across
deals.
Prepayments,
principal
paydowns,
and
other
writedown
or
loss
events
on
the
underlying
mortgage
loans
will
reduce
the
outstanding
principal
balance
of
the
referenced
obligation.
These
reductions
may
be
temporary
or
permanent
as
defined
under
the
terms
of
the
swap
agreement
and
the
notional
amount
for
the
swap
agreement
generally
will
be
adjusted
by
corresponding
amounts.
The
Funds
may
use
credit
default
swaps
on
asset-backed
securities
to
provide
a
measure
of
protection
against
defaults
(or
other
defined
credit
events)
of
the
referenced
obligation
or
to
take
an
active
long
or
short
position
with
respect
to
the
likelihood
of
a
particular
referenced
obligation’s
default
(or
another
defined
credit
event).
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
74
Notes
to
Financial
Statements
the
referenced
entities
comprising
the
credit
index.
A
credit
index
is
a
basket
of
credit
instruments
or
exposures
designed
to
be
representative
of
some
part
of
the
credit
market
as
a
whole.
These
indices
are
made
up
of
reference
credits
that
are
judged
by
a
poll
of
dealers
to
be
the
most
liquid
entities
in
the
credit
default
swap
market
based
on
the
sector
of
the
index.
Components
of
the
indices
may
include,
but
are
not
limited
to,
investment
grade
securities,
high
yield
securities,
asset-backed
securities,
emerging
markets,
and/or
various
credit
ratings
within
each
sector.
Credit
indices
are
traded
using
credit
default
swaps
with
standardized
terms
including
a
fixed
spread
and
standard
maturity
dates.
An
index
credit
default
swap
references
all
the
names
in
the
index,
and
if
there
is
a
default,
the
credit
event
is
settled
based
on
that
name’s
weight
in
the
index.
The
composition
of
the
indices
changes
periodically,
usually
every
six
months,
and,
for
most
indices,
each
name
has
an
equal
weight
in
the
index.
Traders
may
use
credit
default
swaps
on
indices
to
speculate
on
changes
in
credit
quality.
Implied
credit
spreads,
represented
in
absolute
terms,
utilized
in
determining
the
fair
value
of
credit
default
swap
agreements
on
corporate
issues
as
of
period-end
are
disclosed
in
the
Schedules
of
Investments
and
generally
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
(or
other
defined
credit
event)
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
entering
into
a
credit
default
swap
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
For
credit
default
swap
agreements
on
asset-
backed
securities
and
credit
indices,
the
quoted
market
prices
and
resulting
values
serve
as
the
indicator
of
the
current
status
of
the
payment/performance
risk.
Wider
credit
spreads
and
increasing
fair
values,
in
absolute
terms
when
compared
to
the
notional
amount
of
the
swap,
generally
represent
a
deterioration
of
the
referenced
entity’s
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
Funds
as
a
seller
of
protection
could
be
required
to
make
under
a
credit
default
swap
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
all
credit
default
swap
agreements
outstanding
as
of
June
30,
2020,
for
which
a
Fund
is
the
seller
of
protection
are
disclosed
in
the
Schedules
of
Investments.
These
potential
amounts
would
be
partially
offset
by
any
recovery
values
of
the
respective
referenced
obligations,
upfront
payments
received
upon
entering
into
the
agreement,
or
net
amounts
received
from
the
settlement
of
buy
protection
credit
default
swap
agreements
entered
into
by
a
Fund
for
the
same
referenced
entity
or
entities.
Credit
default
swaps
could
result
in
losses
if
the
Funds
do
not
correctly
evaluate
the
creditworthiness
of
the
company
or
companies
on
which
the
credit
default
swap
is
based.
Credit
default
swap
agreements
may
involve
greater
risks
than
if
the
Funds
had
invested
in
the
reference
obligation
directly
since,
in
addition
to
risks
relating
to
the
reference
obligation,
credit
default
swaps
are
subject
to
illiquidity
and
counterparty
risk.
A
Fund
will
generally
incur
a
greater
degree
of
risk
when
it
sells
a
credit
default
swap
than
when
it
purchases
a
credit
default
swap.
As
a
buyer
of
a
credit
default
swap,
a
Fund
may
lose
its
investment
and
recover
nothing
should
a
credit
event
fail
to
occur
and
the
swap
is
held
to
its
termination
date.
As
seller
of
a
credit
default
swap,
if
a
credit
event
were
to
occur,
the
value
of
any
deliverable
obligation
received
by
a
Fund,
coupled
with
the
upfront
or
periodic
payments
previously
received,
may
be
less
than
what
it
pays
to
the
buyer,
resulting
in
a
loss
of
value
to
the
Fund.
If
the
creditworthiness
of
a
Fund’s
swap
counterparty
declines,
the
risk
that
the
counterparty
may
not
perform
could
increase,
potentially
resulting
in
a
loss
to
the
Fund.
To
limit
the
counterparty
risk
involved
in
swap
agreements,
the
Funds
will
only
enter
into
swap
agreements
with
counterparties
that
meet
certain
standards
of
creditworthiness.
Although
there
can
be
no
assurance
that
the
Funds
will
be
able
to
do
so,
the
Funds
may
be
able
to
reduce
or
eliminate
their
exposure
under
a
swap
agreement
either
by
assignment
or
other
disposition,
or
by
entering
into
an
offsetting
swap
agreement
with
the
same
party
or
another
creditworthy
party.
The
Funds
may
have
limited
ability
to
eliminate
their
exposure
under
a
credit
default
swap
if
the
credit
quality
of
the
reference
entity
or
underlying
asset
has
declined.
For
the
period
ended
June
30,
2020,
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.
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
75
Total
Return
Swaps
The
Funds
may
enter
into
total
return
swap
agreements
to
expose
cash
to
markets
or
to
effect
investment
transactions.
Total
return
swap
agreements
are
two
party
contracts
entered
into
primarily
by
institutional
investors
for
periods
ranging
from
a
few
weeks
to
more
than
one
year.
In
a
standard
total
return
swap
transaction,
the
two
parties
agree
to
exchange
the
returns
(or
differentials
in
rates
of
return)
earned
or
realized
on
particular
investments
or
instruments.
The
returns
to
be
exchanged
between
the
parties
are
calculated
with
respect
to
a
“notional
amount”
(i.e.,
a
specified
dollar
amount
that
is
hypothetically
invested
in
a
“basket”
of
securities
representing
a
particular
index).
For
the
period
ended
June
30,
2020,
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
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
and
the
Underlying
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
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2020
June
30,
2020
Moderate
Strategy
Fund
$
17,500,000
$
7,420,000
Balanced
Strategy
Fund
30,300,000
9,225,000
Growth
Strategy
Fund
8,300,000
5,300,000
Equity
Growth
Strategy
Fund
2,700,000
1,615,000
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
76
Notes
to
Financial
Statements
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
the
Underlying
Funds
or
on
certain
instruments
in
which
a
Fund
or
an
Underlying
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
Funds’
or
Underlying
Funds’
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
or
an
Underlying
Fund,
including
those
described
in
this
paragraph,
or
a
reduction
in
the
effectiveness
of
related
Fund
or
Underlying
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
or
an
Underlying
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
due
to
international
trade
disputes)
and
events
(including
natural
disasters,
pandemics,
epidemics,
social
unrest
and
government
shutdowns)
in
one
country,
region
or
financial
market
may
adversely
impact
issuers
in
a
different
country,
region
or
financial
market.
As
a
result,
issuers
of
securities
held
by
a
Fund
or
an
Underlying
Fund
may
experience
significant
declines
in
the
value
of
their
assets
and
even
cease
operations.
Such
conditions
and/or
events
may
not
have
the
same
impact
on
all
types
of
securities
and
may
expose
a
Fund
or
an
Underlying
Fund
to
greater
market
and
liquidity
risk
and
potential
difficulty
in
valuing
portfolio
instruments
held.
This
could
cause
a
Fund
or
an
Underlying
Fund
to
underperform
other
types
of
investments.
Investment
Transactions
Securities
During
the
period
ended
June
30,
2020,
purchases
and
sales
of
investment
securities
(excluding
short-term
investments,
options
and
futures)
were
as
follows:
Related
Party
Transactions,
Fees
and
Expenses
Adviser,
Administrator,
Transfer
and
Dividend
Disbursing
Agent
RIM
provides
or
oversees
the
provision
of
all
investment
advisory
and
portfolio
management
services
for
the
Funds.
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
Purchases
Sales
Moderate
Strategy
Fund
$
12,632,322
$
22,525,490
Balanced
Strategy
Fund
16,348,735
44,812,087
Growth
Strategy
Fund
15,455,210
31,009,4
56
Equity
Growth
Strategy
Fund
2,780,229
9,796,138
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
77
responsible
for
providing
transfer
agency
and
dividend
disbursing
services
to
the
Funds.
RIFUS
is
a
wholly-owned
subsidiary
of
RIM.
RIM
is
an
indirect,
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company.
The
Funds
are
permitted
to
invest
their
cash
(i.e.,
cash
awaiting
investment
or
cash
held
to
meet
redemption
requests
or
to
pay
expenses)
in
the
U.S.
Cash
Management
Fund,
an
unregistered
fund
advised
by
RIM.
As
of
June
30,
2020,
the
Funds
had
invested
$21,726,112
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
June
30,
2020:
RIM
has
agreed
to
certain
waivers
of
its
advisory
fees
as
follows:
For
the
Moderate
Strategy
Fund,
RIM
has
contractually
agreed,
until
April
30,
2021,
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,
2021,
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,
2021,
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,
2021,
to
waive
up
to
the
full
amount
of
its
0.20%
advisory
fee
and
then
to
reimburse
the
Fund
for
other
direct
Fund-level
expenses
to
the
extent
that
direct
Fund-level
expenses
exceed
0.15%
of
the
average
daily
net
assets
of
the
Fund
on
an
annual
basis.
Direct
Fund-level
expenses
do
not
include
extraordinary
expenses
or
the
expenses
of
other
investment
companies
in
which
the
Fund
invests,
including
the
Underlying
Funds,
which
are
borne
indirectly
by
the
Fund.
This
waiver
and
reimbursement
may
not
be
terminated
during
the
relevant
period
except
with
Board
approval.
For
the
period
ended
June
30,
2020,
RIM
waived/reimbursed
the
following
expenses:
Advisory
Administration
Moderate
Strategy
Fund
$
89,995
$
19,124
Balanced
Strategy
Fund
229,490
48,767
Growth
Strategy
Fund
177,751
37,772
Equity
Growth
Strategy
Fund
41,462
8,811
Waiver
Reimbursement
Total
Moderate
Strategy
Fund
$
89,995
$
24,699
$
114,694
Balanced
Strategy
Fund
214,218
—
214,218
Growth
Strategy
Fund
166,424
—
166,424
Equity
Growth
Strategy
Fund
41,462
36,141
77,603
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
78
Notes
to
Financial
Statements
RIM
does
not
have
the
ability
to
recover
amounts
waived
or
reimbursed
from
previous
periods.
Transfer
and
Dividend
Disbursing
Agent
RIFUS
serves
as
transfer
agent
and
provides
dividend
disbursing
services
to
the
Funds.
For
this
service,
RIFUS
is
paid
a
fee
based
upon
the
average
daily
net
assets
of
the
Funds
for
transfer
agency
and
dividend
disbursing
services.
RIFUS
retains
a
portion
of
this
fee
for
its
services
provided
to
the
Funds
and
pays
the
balance
to
unaffiliated
agents
who
assist
in
providing
these
services.
Transfer
agency
fees
paid
by
the
Funds
presented
herein
for
the
period
ended
June
30,
2020
were
as
follows:
Distributor
Russell
Investments
Financial
Services,
LLC,
(the
“Distributor”),
a
wholly-owned
subsidiary
of
RIM,
is
the
distributor
for
the
Investment
Company
pursuant
to
a
distribution
agreement
with
the
Investment
Company.
The
Distributor
receives
no
compensation
from
the
Investment
Company
for
its
services.
Affiliated
Brokerage
Transactions
The
Funds
effect
certain
transactions
through
Russell
Investments
Implementation
Services,
LLC
(“RIIS”).
RIIS
is
a
registered
broker
and
investment
adviser
and
an
affiliate
of
RIM.
RIIS
uses
a
multi-venue
trade
management
approach
whereby
RIIS
allocates
trades
among
RIIS’
network
of
independent
brokers
for
execution,
clearing
and
other
services.
RIM
has
authorized
RIIS
to
effect
certain
futures,
swaps,
OTC
derivative
transactions,
and
cleared
swaps,
including
foreign
currency
spots,
forwards
and
options
trading
on
behalf
of
the
Funds.
Board
of
Trustees
The
Russell
Investments
Fund
Complex
consists
of
RIC,
which
has
34
funds
and
RIF,
which
has
9
funds.
Each
of
the
Trustees
is
a
Trustee
of
RIC
and
RIF.
The
Russell
Investments
Fund
Complex
compensates
each
Trustee
who
is
not
an
employee
of
RIM
or
its
affiliates.
Trustee
compensation
and
expenses
are
allocated
to
each
Fund
based
on
its
net
assets
relative
to
other
funds
in
the
Russell
Investments
Fund
Complex.
For
the
period
ended
June
30,
2020,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$984,750.
Federal
Income
Taxes
At
June
30,
2020,
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
As
of
June
30,
2020,
the
following
table
includes
shareholders
of
record
with
greater
than
10%
of
the
total
outstanding
shares
of
each
respective
Fund.
Amount
Moderate
Strategy
Fund
$
1,980
Balanced
Strategy
Fund
5,049
Growth
Strategy
Fund
3,911
Equity
Growth
Strategy
Fund
912
No
Expiration
Funds
Short
Term
Long-Term
Totals
Moderate
Strategy
Fund
$
87,673
$
—
$
87,673
#
of
Shareholders
%
Moderate
Strategy
Fund
1
87.6
Balanced
Strategy
Fund
1
88.2
Growth
Strategy
Fund
2
97.8
Equity
Growth
Strategy
Fund
2
96.6
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2020
(Unaudited)
Notes
to
Financial
Statements
79
Subsequent
Events
Management
has
evaluated
the
events
and/or
transactions
that
have
occurred
through
the
date
the
financial
statements
were
issued
and
noted
no
events
have
occurred
that
require
disclosure
except
the
following:
On
July
2,
2020,
the
Board
declared
dividends
payable
from
net
investment
income.
Dividends
were
paid
on
July
7,
2020
to
shareholders
of
record
effective
with
the
opening
on
July
6,
2020.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement
—(Unaudited)
80
Basis
for
Approval
of
Investment
Advisory
Agreement
The
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
requires
that
the
Board
of
Trustees
(the
“Board”),
including
a
majority
of
its
members
who
are
not
considered
to
be
“interested
persons”
under
the
1940
Act
(the
“Independent
Trustees”)
voting
separately,
approve
for
an
initial
term
not
to
exceed
two
years
and,
thereafter,
approve
the
continuation
of
the
advisory
agreement
with
Russell
Investment
Management,
LLC
(“RIM”)
(the
“RIM
Agreement”)
and
the
portfolio
management
contract
with
each
Money
Manager
of
the
funds
(collectively,
the
“portfolio
management
contracts”
and,
with
the
RIM
Agreement,
the
“Agreements”)
in
which
the
Funds
invest
(the
“Underlying
Funds”)
on
at
least
an
annual
basis
and
that
the
terms
and
conditions
of
the
RIM
Agreement
and
the
terms
and
conditions
of
each
portfolio
management
contract
provide
for
its
termination
if
continuation
is
not
approved
annually.
The
Board,
which
is
currently
comprised
entirely
of
Independent
Trustees
(the
“Trustees”),
considered
the
continuation
of
the
Agreements
at
a
meeting
held
by
video
conference
on
May
15,
2020
(the
“Agreement
Evaluation
Meeting”),
and
further
considered
and
approved
the
continuation
of
the
Agreements
at
a
meeting
held
by
video
conference
on
May
18-19,
2020
(the
“Agreement
Approval
Meeting”)
in
reliance
on
the
exemptive
order
for
temporary,
conditional
relief
from
the
in-person
voting
requirement
of
Section
15(c)
of
the
1940
Act
provided
by
the
U.S.
Securities
and
Exchange
Commission
(the
“SEC”).
During
the
course
of
a
year,
the
Trustees
receive
a
wide
variety
of
materials
regarding,
among
other
things,
the
investment
performance
of
the
Funds
and
Underlying
Funds,
sales
and
redemptions
of
the
Funds’
and
Underlying
Funds’
shares,
management
of
the
Funds
and
the
Underlying
Funds
and
other
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
and
compliance
with
applicable
regulatory
requirements.
In
preparation
for
the
annual
review,
the
Trustees,
with
the
advice
and
assistance
of
their
independent
counsel
(“Independent
Counsel”),
also
requested
and
considered
(1)
information
and
reports
prepared
by
RIM
relating
to
the
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
to
the
Funds
and
the
Underlying
Funds;
(2)
information
and
reports
prepared
by
RIM
relating
to
the
profitability
of
each
Fund
and
Underlying
Fund
to
RIM
(and
its
affiliates);
and
(3)
information
received
from
an
independent,
nationally
recognized
provider
of
investment
company
information
comparing
the
performance
of
the
Funds
and
the
Underlying
Funds
and
their
respective
operating
expenses
over
various
periods
of
time
with
other
peer
funds
not
managed
by
RIM,
believed
by
the
provider
to
be
generally
comparable
to
the
Funds
and
the
Underlying
Funds
(the
“Third-Party
Information”).
In
the
case
of
each
Fund,
its
other
peer
funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Comparable
Funds,”
and,
with
the
Fund,
such
Comparable
Funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Performance
Universe”
in
the
case
of
performance
comparisons
and
the
Fund’s
“Expense
Universe”
in
the
case
of
operating
expense
comparisons.
The
foregoing
and
other
information
received
by
the
Board
in
connection
with
its
evaluations
of
the
Agreements
are
collectively
called
the
“Agreement
Evaluation
Information.”
The
Trustees’
evaluations
also
reflected
the
knowledge
and
familiarity
gained
as
Board
members
of
the
Funds
and
the
other
RIM-managed
funds
for
which
the
Board
has
supervisory
responsibility,
including
the
Underlying
Funds
(“Other
RIM
Funds”),
with
respect
to
services
provided
by
RIM,
RIM’s
affiliates
and
each
Money
Manager.
The
Trustees
received
a
memorandum
from
counsel
to
the
Funds
and
the
Underlying
Funds
(“Fund
Counsel”)
discussing
the
legal
standards
for
their
consideration
of
the
continuations
of
the
Agreements,
and
separately
received
a
memorandum
regarding
their
responsibilities
from
their
Independent
Counsel.
At
a
meeting
held
in
person
on
April
30,
2019
(the
“Agreement
Information
Review
Meeting,”),
the
Board,
including
the
Independent
Trustees,
in
preparation
for
the
Agreement
Evaluation
Meeting,
met
with
representatives
of
RIM;
met
in
an
executive
session
with
a
representative
of
TA
Associates
Management,
L.P.
(“TA
Associates”),
at
which
the
Chief
Operating
Officer
(“COO”)
of
RIM’s
parent
company
was
present;
and
then
the
Independent
Trustees
met
in
a
private
session
with
Independent
Counsel
at
which
no
representatives
of
RIM
or
the
Funds’
management
were
present
to
review
the
Agreement
Evaluation
Information
received
to
that
date
and,
on
the
basis
of
that
review,
communicated
additional
questions
and
requested
additional
Agreement
Evaluation
Information.
Certain
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
was
received
on
May
10,
2019.
On
May
14,
2019,
the
Independent
Trustees
met
by
conference
telephone
call
in
private
session
with
Independent
Counsel
to
further
discuss
the
Agreement
Evaluation
Information
and
review
the
additional
Agreement
Evaluation
Information.
On
May
14,
2019,
following
the
aforementioned
conference
call,
the
Board
Chair
met
in-person
with
representatives
of
management.
At
the
Agreement
Evaluation
Meeting,
the
Independent
Trustees
again
met
in
person
in
a
private
session
with
Independent
Counsel
to
review
additional
or
revised
Agreement
Evaluation
Information
received
to
that
date.
At
the
Agreement
Evaluation
Meeting,
the
Board,
including
the
Independent
Trustees,
considered
the
proposed
continuance
of
the
Agreements
with
RIM,
Fund
management,
Independent
Counsel
and
Fund
Counsel.
The
Board
considered
that
the
Agreement
Evaluation
Information
and
presentations
made
by
RIM
at
the
Agreement
Evaluation
Meeting
as
part
of
this
review
encompassed
the
Funds
and
all
Other
RIM
Funds.
Information
received
by
the
Board,
including
the
Independent
Trustees,
prior
to
and
at
the
Agreement
Information
Review
Meeting,
the
Agreement
Evaluation
Meeting
and
other
meetings
identified
above
is
included
in
the
Agreement
Evaluation
Information.
Prior
to
voting
at
the
Agreement
Evaluation
Meeting,
the
Independent
Trustees
met
in
private
session
with
Independent
Counsel
to
consider
Agreement
Evaluation
Information
received
from
RIM
and
management
at
and
prior
to
the
Agreement
Evaluation
Meeting.
The
discussion
below
reflects
all
of
these
reviews.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
81
On
April
27,
2020,
the
Trustees
met
privately
by
video
conference
with
Independent
Counsel
to
discuss
the
Agreement
Evaluation
Information
received
to
that
date.
At
a
meeting
held
on
April
28,
2020
(the
“Agreement
Information
Review
Meeting”),
the
Trustees,
in
preparation
for
the
Agreement
Evaluation
Meeting,
met
by
video
conference
in
an
executive
session
with
a
representative
of
TA
Associates
Management,
L.P.
(“TA
Associates”),
at
which
Independent
Counsel
and
Fund
Counsel
and,
for
a
portion
of
the
session,
the
Chief
Financial
Officer
(“CFO”)
and
Chief
Operating
Officer
(“COO”)
of
RIM’s
parent
company
were
present;
met
by
video
conference
with
representatives
of
RIM;
and
then
the
Trustees
met
by
video
conference
in
a
private
session
with
Independent
Counsel
at
which
no
representatives
of
RIM
or
the
Funds’
management
were
present
to
further
review
and
discuss
the
Agreement
Evaluation
Information
received
to
that
date.
On
the
basis
of
that
review,
the
Trustees
communicated
additional
questions
and
requested
additional
Agreement
Evaluation
Information.
Certain
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
was
received
on
May
7,
2020.
On
May
12,
2020,
the
Trustees
met
by
video
conference
in
private
session
with
Independent
Counsel
to
further
discuss
the
Agreement
Evaluation
Information
and
review
the
additional
Agreement
Evaluation
Information.
On
May
13,
2020,
the
Board
Chair
met
by
conference
telephone
call
with
representatives
of
management
and
requested
clarifications
and
confirmations
of
certain
of
the
previously
provided
additional
Agreement
Evaluation
Information
and
those
clarifications
and
confirmations
were
addressed
at
the
Agreement
Evaluation
Meeting.
At
the
Agreement
Evaluation
Meeting,
the
Trustees
again
met
by
video
conference
in
a
private
session
with
Independent
Counsel
to
review
the
additional
or
revised
Agreement
Evaluation
Information
received
to
that
date.
At
the
Agreement
Evaluation
Meeting,
the
Trustees
considered
the
proposed
continuance
of
the
Agreements
with
RIM,
Fund
management,
Independent
Counsel
and
Fund
Counsel.
The
Board
considered
that
the
Agreement
Evaluation
Information
and
presentations
made
by
RIM
at
the
Agreement
Evaluation
Meeting
as
part
of
this
review
encompassed
the
Funds
and
all
Other
RIM
Funds.
Information
received
by
the
Board
prior
to
and
at
the
Agreement
Information
Review
Meeting,
the
Agreement
Evaluation
Meeting,
the
Agreement
Approval
Meeting
and
other
meetings
identified
above
is
included
in
the
Agreement
Evaluation
Information.
Prior
to
voting
at
the
Agreement
Approval
Meeting,
the
Trustees
met
in
private
session
with
Independent
Counsel
to
consider
Agreement
Evaluation
Information
received
from
RIM
and
management
at
and
prior
to
the
Agreement
Approval
Meeting.
The
discussion
below
reflects
all
of
these
reviews.
In
evaluating
the
Agreements,
the
Board
considered
that
each
of
the
Underlying
Funds
employs
a
manager-of-managers
method
of
investment
and
RIM’s
past
expressed
belief
that
the
Underlying
Funds,
in
employing
a
manager-of-managers
method
of
investment,
operate
in
a
manner
that
is
different
from
most
other
investment
companies.
In
the
case
of
most
other
investment
companies,
an
investment
advisory
fee
is
paid
by
the
investment
company
to
its
adviser
which,
in
turn,
employs
and
compensates
individual
portfolio
managers
to
make
specific
securities
selections
consistent
with
the
adviser’s
style
and
investment
philosophy.
In
the
case
of
the
Underlying
Funds,
RIM,
however,
has
engaged
multiple
unaffiliated
Money
Managers.
RIM
is
responsible
for
paying
fees
to
the
Money
Managers
(“Money
Manager
Fees”)
out
of
the
fees
paid
by
the
Underlying
Funds
to
RIM
for
its
services
under
the
RIM
Agreement
(the
“Advisory
Fee”).
A
Money
Manager
may
have
(1)
a
discretionary
asset
management
assignment
pursuant
to
which
it
is
allocated
a
portion
of
an
Underlying
Fund’s
assets
to
manage
directly
in
its
discretion;
(2)
a
non-discretionary
assignment
pursuant
to
which
it
provides
a
model
portfolio
to
RIM
representing
its
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
an
Underlying
Fund;
or
(3)
both
a
discretionary
and
a
non-discretionary
assignment.
Money
Manager
Fees
for
a
non-discretionary
assignment
may
be
the
same
as,
or
lower
than,
the
fees
would
be
for
a
discretionary
assignment
with
the
same
Money
Manager.
The
Board
considered
that
RIM
(rather
than
any
Money
Manager
in
the
case
of
Underlying
Funds)
is
responsible
under
the
RIM
Agreement
for
determining,
implementing
and
maintaining
the
investment
program
for
each
Fund
and,
in
conducting
each
Fund’s
investment
program,
allocating
assets
of
such
Fund
principally
among
its
Underlying
Funds.
The
assets
of
each
Fund
are
principally
invested
in
different
combinations
of
the
Underlying
Funds
pursuant
to
target
asset
allocations
set
by
RIM.
RIM
analyzes
opportunities
and
risks
at
the
aggregate
level
of
the
four
main
asset
classes
–
equities,
fixed
income,
alternatives
and
multi-asset
–
and
monitors
exposure
to
such
asset
classes
using
analytical
tools
to
ensure
that
any
deviations
from
the
target
asset
allocations
are
intentional
and
tactical.
RIM
continually
evaluates
each
Fund’s
allocation
between
asset
classes
to
ensure
that
the
allocations
optimally
match
the
Fund’s
stated
investment
objectives
and
risks
profile.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
seek
to
actively
manage
each
Fund’s
overall
exposures
(such
as
asset
class,
currency,
capitalization
size,
industry,
sector,
region,
credit
exposure,
country
risk,
yield
curve
positioning
or
interest
rates)
by
investing
in
derivatives
that
RIM
believes
will
achieve
the
desired
exposures
for
the
Fund.
RIM
may
modify
the
target
asset
allocation
for
any
Fund
and/or
the
Underlying
Funds
in
which
the
Funds
invest.
The
overall
performance
of
each
Fund
therefore
has
reflected,
in
part,
the
performance
of
RIM
in
designing
the
investment
program
of
the
Fund
and
in
determining
the
Funds’
target
strategic
asset
allocations.
The
overall
performance
of
each
Fund
also
has
reflected
the
performance
of
RIM
in
managing
its
Underlying
Funds.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
82
Basis
for
Approval
of
Investment
Advisory
Agreement
The
Board
considered
that,
although
RIM
traditionally
has
managed
Underlying
Fund
exposures
through
the
selection
of
and
allocations
to
Money
Manager
strategies,
innovations
in
RIM
portfolio
management
techniques
together
with
evolutions
in
available
technology,
tools
and
analytics
have
resulted
in
certain
changes
in
RIM’s
approach
to
its
Underlying
Fund
investment
advisory
services.
In
this
regard,
assets
of
each
Underlying
Fund
continue
to
be
allocated
among
RIM
and
the
multiple
Money
Manager
strategies
selected
by
RIM
for
that
Underlying
Fund.
RIM
may
change
an
Underlying
Fund’s
asset
allocation
to
a
Money
Manager
at
any
time,
including
by
allocating
no
Underlying
Fund
assets
to
one
or
more
Money
Manager
strategies.
In
addition,
RIM
continues
to
manage
the
investment
of
each
Underlying
Fund’s
cash
and
portions
of
an
Underlying
Fund
during
transitions
between
discretionary
Money
Managers.
RIM
also
continues
to
manage
directly
any
portion
of
each
Underlying
Fund’s
assets
that
RIM
determines
not
to
allocate
to
Money
Manager
strategies.
Most
Underlying
Funds
usually,
but
not
always,
pursue
a
strategy
to
be
fully
invested
by
exposing
all
or
a
portion
of
their
cash
to
the
performance
of
appropriate
markets
by
purchasing
equity
securities,
fixed
income
securities
and/or
derivatives,
which
typically
include
futures
contracts.
This
cash
“equitization”
strategy
is
managed
by
RIM.
With
respect
to
the
portion
of
an
Underlying
Fund
that
RIM
manages
based
upon
non-discretionary
Money
Manager
model
portfolios,
RIM
constructs
a
portfolio
that
represents
the
aggregation
of
the
model
portfolios
based
upon
RIM’s
allocation
to
each
Money
Manager’s
strategy
through
an
“enhanced
portfolio
implementation,”
or
“emulation,”
process
designed
to
capture
return
streams
of
multiple
managers
in
a
centralized
portfolio.
RIM
then
implements
the
portfolio
consistent
with
the
aggregation
of
the
model
portfolios,
but
may
deviate
from
such
aggregation
for
the
purposes
of
exposure
and
transaction
cost
management.
RIM
noted
that
the
Underlying
Funds
may
benefit
from
emulation
through,
among
other
things,
improved
incremental
returns
over
time
due
to
lower
aggregate
transaction
costs
and
turnover
from
reduced
trading
volumes
and
the
potential
for
additional
commission
recapture.
In
all
cases,
Underlying
Fund
assets
are
managed
directly
by
RIM
pursuant
to
authority
provided
by
the
RIM
Agreement.
The
Board
noted
the
variety
and
complexity
of
investment
advisory
services
that
RIM
provides
directly
or,
through
the
Underlying
Funds,
indirectly
to
the
Funds
under
the
RIM
Agreement.
In
the
case
of
Underlying
Funds,
RIM
is
responsible
for
selecting
(subject
to
Board
approval),
overseeing
and
evaluating
the
performance
results
of
the
Money
Managers
for
each
Underlying
Fund
and
for
actively
managing
allocations
and
reallocations
of
its
assets
among
the
Money
Manager
strategies
and
RIM
itself.
Each
discretionary
Money
Manager
for
an
Underlying
Fund
in
effect
performs
the
function
of
an
individual
portfolio
manager
who
is
responsible
for
researching,
selecting
and
trading
portfolio
securities
for
the
portion
of
the
Underlying
Fund
assigned
to
it
by
RIM
in
accordance
with
the
Underlying
Fund’s
applicable
investment
objective,
policies
and
restrictions,
any
specific
guidelines
placed
by
RIM
upon
their
selection
of
portfolio
securities
and
the
Money
Manager’s
specified
role
in
an
Underlying
Fund.
A
Money
Manager’s
primary
role
is
to
pursue
a
particular
investment
strategy
that
has
been
selected
and
assigned
to
it
by
RIM
through
sector
and
security
selection
and
risk
control
measures
in
a
manner
that
is
consistent
with
its
RIM-assigned
guidelines.
The
Money
Managers
operate
subject
to
the
oversight
of,
and
instructions
from,
RIM.
For
each
Underlying
Fund,
RIM
is
responsible
for,
among
other
things,
providing
each
Money
Manager
with
the
investment
guidelines
and
policies
for
the
Underlying
Fund
and
any
specific
investment
restrictions;
monitoring
the
performance
of
each
Money
Manager
and
Underlying
Fund;
generally
supervising
compliance
by
the
discretionary
Money
Managers
and,
as
applicable,
the
non-discretionary
Money
Managers
with
each
Underlying
Fund’s
investment
objective
and
policies;
with
respect
to
Underlying
Funds
with
non-discretionary
Money
Managers,
purchasing
and
selling
securities
for
the
Underlying
Funds
based
on
model
portfolios
representing
the
investment
recommendations
of
the
non-discretionary
Money
Managers;
managing
Underlying
Fund
assets
that
are
not
allocated
to
Money
Manager
strategies;
managing
the
Funds’
and
Underlying
Funds’
cash
balances;
and
recommending
at
least
annually
to
the
Board
whether
portfolio
management
contracts
should
be
renewed,
modified
or
terminated.
In
addition
to
its
annual
recommendation
as
to
the
renewal,
modification
or
termination
of
portfolio
management
contracts,
RIM
is
responsible
for
recommending
to
the
Board
additions
of
new
Money
Managers
or
terminations
or
replacements
of
existing
Money
Managers
at
any
time
when,
based
on
RIM’s
research
and
ongoing
review
and
analysis,
such
actions
are,
in
RIM’s
judgment,
appropriate.
RIM
may
impose
specific
investment
or
strategy
parameters
from
time
to
time
on
each
Money
Manager
intended
to
capitalize
on
the
strengths
of
that
Money
Manager
or
to
coordinate
the
investment
activities
of
Money
Managers
for
the
Underlying
Fund
in
a
complementary
manner.
Therefore,
RIM’s
selection
of
Money
Managers
for
an
Underlying
Fund
is
made
not
only
on
the
basis
of
performance
considerations
but
also
on
the
basis
of
other
factors,
including
anticipated
compatibility
with
other
Money
Managers
in
the
same
Underlying
Fund.
In
light
of
the
foregoing,
the
overall
performance
of
each
Underlying
Fund
has
reflected,
in
great
part,
the
performance
of
RIM
in
designing
the
Underlying
Fund’s
investment
program,
structuring
the
Underlying
Fund,
selecting
effective
Money
Managers,
and
allocating
assets
among
the
Money
Manager
strategies
and
RIM
in
a
manner
designed
to
achieve
the
investment
objectives
of
the
Underlying
Fund.
In
the
Agreement
Evaluation
Information,
RIM
noted
the
broad
array
of
investment
management
services
provided
to
the
Underlying
Funds
by
RIM
compared
to
the
relatively
narrow
portfolio
management
services
provided
to
the
Underlying
Funds
by
Money
Managers.
RIM
has
advised
the
Board
that
its
portfolio
construction
process
is
investment
led
and
designed
to
be
conducted
in
a
manner
that
is
consistent
with
its
fiduciary
duties.
The
objective
of
RIM’s
portfolio
construction
is
to
meet
a
portfolio’s
investment
objective
and
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
83
established
excess
return
target.
In
the
Agreement
Evaluation
Information,
RIM
noted
that
while
it
has
general
goals
for
Money
Manager
Fees
in
the
aggregate
globally,
there
are
no
specific
fee
targets
that
are
established
for
individual
portfolios,
which
includes
each
of
the
Underlying
Funds.
In
the
Agreement
Evaluation
Information,
RIM
advised
the
Board
that
Money
Manager
Fees,
in
the
aggregate,
must
allow
RIM
to
remain
a
going
concern
with
sufficient
resources
to
provide
required
services
to
the
Funds
and
to
earn
a
reasonable
profit.
RIM
advised
the
Board
that
RIM
portfolio
managers
utilize
a
number
of
tools
in
the
portfolio
construction
process
in
order
to
meet
an
Underlying
Fund’s
objective
taking
into
account
Money
Manager
Fees.
These
tools
include,
among
others,
Money
Manager
selection,
Money
Manager
allocation,
Money
Manager
Fee
negotiations,
guideline
customization
and
Direct
Management
Services
(as
defined
below).
The
Board
considered
that
the
prospectuses
for
the
Funds
and
the
Underlying
Funds
and
other
public
disclosures
have
emphasized,
and
continue
to
emphasize,
to
investors
RIM’s
role
as
the
principal
investment
manager
for
each
Underlying
Fund,
rather
than
the
investment
selection
or
recommendation
role
of
these
Underlying
Funds’
Money
Managers,
and
describe
the
manner
in
which
the
Funds
or
Underlying
Funds
operate
so
that
investors
may
take
that
information
into
account
when
deciding
to
purchase
shares
of
any
such
Fund.
The
Board
further
considered
that
Fund
investors
in
pursuing
their
investment
goals
and
objectives
likely
purchased
their
shares
on
the
basis
of
this
information
and
RIM’s
reputation
for
and
performance
record
in
managing
the
manager-of-managers
structure
of
the
Underlying
Funds.
The
Board
also
considered
the
demands
and
complexity
of
managing
the
Underlying
Funds
pursuant
to
the
manager-of-managers
structure,
the
special
expertise
of
RIM
with
respect
to
the
manager-of-managers
structure
of
the
Underlying
Funds
and
the
possibility
that,
at
the
current
expense
ratio
of
each
Underlying
Fund,
there
might
be
no
acceptable
alternative
investment
managers
to
replace
RIM
on
comparable
terms
given
the
need
to
continue
the
manager-of-managers
strategy
of
such
Underlying
Fund
selected
by
shareholders
in
purchasing
their
shares
In
addition
to
these
general
factors
relating
to
the
manager-of-managers
structure
of
the
Underlying
Funds,
the
Trustees
considered,
with
respect
to
each
Fund
and
Underlying
Fund,
various
specific
factors
in
evaluating
renewal
of
the
RIM
Agreement,
including
the
following:
1.
The
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
or
the
Underlying
Fund
by
RIM;
2.
The
Advisory
Fee
paid
by
the
Fund
or
the
Underlying
Fund
to
RIM
and
the
fact
that
it
encompasses
all
investment
advisory
fees
paid
by
the
Fund
or
Underlying
Fund,
including,
in
the
case
of
Underlying
Funds,
the
fact
that
RIM
pays
all
Money
Manager
Fees
out
of
its
Advisory
Fee;
3.
Information
provided
by
RIM
as
to
other
fees
and
benefits
received
by
RIM
or
its
affiliates
in
connection
with
the
Fund
or
the
Underlying
Fund,
including
any
administrative
or
transfer
agent
fees
and
any
fees
received
for
management
or
administration
of
uninvested
cash
and
securities
lending
cash
collateral,
soft
dollar
arrangements
and
commissions
in
connection
with
portfolio
securities
and
foreign
exchange
transactions;
4.
Information
provided
by
RIM
as
to
expenses
incurred
by
the
Fund
or
Underlying
Fund;
5.
Information
provided
by
RIM
as
to
the
profits
that
RIM
derives
from
its
mutual
fund
operations
generally
and
from
the
Fund
or
the
Underlying
Fund;
and
6.
Information
provided
by
RIM
concerning
economies
of
scale
and
whether
any
scale
economies
are
adequately
shared
with
the
Fund
or
the
Underlying
Fund.
In
connection
with
the
Trustees’
consideration
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
which
are
expected
to
be
provided,
to
the
Funds
or
the
Underlying
Funds,
including
Fund
portfolio
management
services,
the
Chief
Investment
Officer
of
RIM
and
the
Funds,
and
senior
representatives
of
Russell
Investments
(as
defined
below),
discussed
with
the
Board
certain
enhancements
made
to
the
investment
management
program
for
the
Underlying
Funds
to
seek
to
increase
the
probability
of
excess
returns.
The
Board
also
discussed
the
Funds’
compliance
program
with
the
Funds’
Chief
Compliance
Officer
(“CCO”),
including
certain
items
reported
in
the
annual
report
of
the
CCO
required
under
Rule
38a-1
of
the
1940
Act
(the
“Annual
CCO
Report”)
and
the
status
of
the
goals
for
the
past
year
related
to
the
compliance
program
that
the
CCO
identified
in
connection
with
last
year’s
Annual
CCO
Report.
The
Annual
CCO
Report
also
included
information
on
the
progress
made
with
respect
to
various
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
84
Basis
for
Approval
of
Investment
Advisory
Agreement
compliance,
operations
and
technology
initiatives
previously
discussed
with
the
Board.
The
CCO
discussed
with
the
Board,
and
the
Board
noted,
enhancements
made
to
the
compliance
programs
of
RIM
and
the
Funds
over
the
past
year.
The
CCO
advised
the
Board
that
the
Funds’
compliance
program
meets
the
standards
of
Rule
38a-1
under
1940
Act
and
that,
as
required
by
Rule
38a-1
under
the
1940
Act,
RIM
has
adopted
policies
and
procedures
that
are
reasonably
designed
to
prevent
violation
of
the
Federal
Securities
Laws
(as
such
term
is
defined
in
the
1940
Act)
with
respect
to
the
services
RIM
provides
to
the
Funds.
The
CCO
and
RIM
senior
management
discussed
the
impact
of
the
COVID-19
crisis
on
the
operations
and
compliance
programs
of
RIM
and
the
Funds’
other
significant
service
providers
and
the
Trustees
received
and
considered
confirmation
from
the
CCO
and
RIM
senior
management
that
there
was
no
anticipated
diminution
in
the
nature,
extent
and
quality
of
services
to
be
provided
by
each
of
these
service
providers
under
their
respective
agreements
with
the
Funds
as
a
result
of
the
COVID-19
crisis.
Since
June
1,
2016,
RIM
has
been
an
indirect
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company
through
which
the
limited
partners
of
certain
private
equity
funds
affiliated
with
TA
Associates
indirectly
have
a
majority
ownership
interest
through
alternative
investment
vehicles
and
the
limited
partners
of
certain
private
equity
funds
affiliated
with
Reverence
Capital
Partners,
L.P.
(“Reverence
Capital”)
indirectly
have
a
significant
minority
controlling
ownership
interest
through
certain
Reverence
Capital
funds
and
alternative
investment
vehicles
in
RIM
and
its
affiliates
(“Russell
Investments”).
In
connection
with
the
Board’s
initial
approval
of
the
RIM
Agreement,
TA
Associates
advised
the
Board
of
its
plans
ultimately
to
effect
a
sale
or
other
disposition
of
its
ownership
interest
in
Russell
Investments.
Any
such
future
transaction
(“Transaction”)
could
cause
a
change
of
control
of
RIM
resulting,
among
other
things,
in
an
assignment
and
termination
of
the
RIM
Agreement,
as
required
by
the
1940
Act,
and
by
the
terms
and
conditions
of
the
RIM
Agreement.
In
the
event
of
a
Transaction,
the
Board
would
be
required
to
consider
the
approval
of
the
terms
and
conditions
of
a
replacement
agreement
(“Successor
Agreement”)
for
the
RIM
Agreement
and
thereafter
to
submit
the
Successor
Agreement
to
each
Fund’s
shareholders
for
approval,
as
required
by
the
1940
Act.
During
the
executive
session
with
a
representative
of
TA
Associates
held
in
connection
with
the
Agreement
Information
Review
Meeting,
among
other
things,
the
status
of
TA
Associates’
indirect
investment
in
RIM
and
RIM’s
access
to
sufficient
resources
to
support
its
activities
in
respect
of
the
Funds,
including
in
light
of
the
current
market
environment
and
the
COVID-19
crisis,
were
discussed.
The
Board
was
advised
that
there
was
no
change
in
TA
Associates’
plans
regarding
its
ownership
interest
in
Russell
Investments
from
those
plans
previously
reported
to
the
Board
and
of
TA
Associates’
commitment
to
continue
to
support
the
same
level
of
services
currently
being
provided
by
RIM
and
its
affiliates
to
the
Funds.
As
noted
above,
RIM,
in
addition
to
managing
the
investment
of
each
Underlying
Fund’s
cash,
directly
manages
a
portion
(which
may
represent
a
significant
portion)
of
the
Underlying
Funds
pursuant
to
the
RIM
Agreement,
with
the
actual
allocation
of
Underlying
Fund
assets
among
Money
Manager
strategies
and
RIM
being
determined
from
time
to
time
by
the
RIM
portfolio
manager(s).
The
nature
and
scope
of
RIM’s
direct
management
of
Underlying
Fund
assets
has
evolved
over
the
past
several
years.
In
the
management
of
Underlying
Funds’
assets,
RIM
utilizes
quantitative
and/or
rules-based
processes
and
qualitative
analysis
to
assess
Underlying
Fund
characteristics
and
invests
in
securities
and
instruments
which
provide
the
desired
exposures
(such
as
low
volatility,
momentum,
value,
growth,
quality,
capitalization
size,
industry,
sector,
region,
currency,
credit
or
mortgage
exposure,
country
risk,
yield
curve
positioning,
or
interest
rates).
RIM
may
utilize
tools
such
as
“optimization,”
which
involves
the
analysis
of
tradeoffs
between
various
risk
and
return
factors
as
well
as
turnover
and
transaction
costs,
in
order
to
estimate
optimal
portfolio
positioning.
RIM
may
use
strategies
based
on
indexes,
including
optimized
index
sampling
(strategies
that
seek
to
purchase
a
sampling
of
securities
using
optimization
and
risk
models)
and/or
index
replication.
For
certain
Underlying
Funds,
RIM
may
invest
in
derivative
instruments
and
may
use
derivatives
to
take
both
long
and
short
positions.
RIM’s
direct
management
of
assets
for
these
purposes
is
hereinafter
referred
to
as
the
“Direct
Management
Services.”
The
Board
has
been
advised
that,
where
appropriate
in
its
judgment,
RIM
intends
to
continue
exploring
the
possible
expansion
of
its
Direct
Management
Services
whereby
larger
portions
of
certain
Underlying
Funds
may
be
managed
directly
by
RIM
pursuant
to
the
Direct
Management
Services.
According
to
RIM,
its
portfolio
managers
combine
Money
Manager
strategies
and
RIM’s
Direct
Management
Services
for
the
Underlying
Funds
and
precisely
align
Underlying
Fund
exposures
with
RIM’s
preferred
positioning.
RIM’s
Direct
Management
Services
are
customized
portfolios
directly
managed
by
RIM
for
use
within
the
total
portfolio
of
each
Fund.
These
strategies
are
used
in
conjunction
with
allocations
to
Money
Manager
strategies
to
fully
reflect
RIM’s
strategic
and
dynamic
insights
with
integrated
liquidity
and
risk
management.
The
Board
considered
that
RIM
is
not
required
to
pay
Money
Manager
Fees
to
any
Money
Managers
with
respect
to
assets
for
which
it
provides
Direct
Management
Services
and
that
the
profits
derived
by
RIM
generally
and
from
the
Underlying
Funds
consequently
may
be
increased,
although
RIM
noted
that
it
may
incur
additional
costs
in
providing
Direct
Management
Services.
RIM
advised
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
85
the
Board
that
allocations,
or
increased
allocations,
of
Underlying
Fund
assets
to
Direct
Management
Services,
together
with
Money
Manager
selection,
allocations
among
Money
Manager
strategies,
renegotiation
of
Money
Manager
Fees
and
changes
in
existing
Money
Manager
assignments
from
discretionary
to
non-discretionary
assignments
where
there
is
a
related
Money
Manager
Fee
reduction
may
reduce
its
costs
of
providing
investment
advisory
services
to
the
Underlying
Funds,
which
would
benefit
RIM.
The
Board
considered
RIM’s
advice
that
any
such
benefit,
including
any
increased
profits
to
RIM,
ultimately
may
be
partially
offset
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Funds
and
any
costs
of
incremental
investments
or
increased
cost
allocations
that
RIM
may
incur
to
support
Direct
Management
Services.
The
Board
also
considered
information
provided
by
RIM
as
to
the
potential
benefits
of
the
Direct
Management
Services
to
Underlying
Funds;
and
the
fact
that
the
aggregate
Advisory
Fees
paid
by
the
Underlying
Funds
are
not
increased
as
a
result
of
RIM’s
direct
management
of
Underlying
Fund
assets
as
part
of
the
Direct
Management
Services
or
otherwise.
The
Board
noted
that
changes
in
the
allocation
of
assets
among
Money
Manager
strategies
or
to
Direct
Management
Services
may
result
directly
in
higher
related
costs
to
affected
Underlying
Funds,
including
higher
brokerage
commissions
and
other
transaction
costs,
a
portion
of
which
is
paid
to
RIM’s
affiliated
broker
in
connection
with
execution
of
portfolio
transactions
in
connection
with
such
changes.
The
Agreement
Evaluation
Information
outlined
various
changes
that
have
been
implemented
in
the
investment
program
for
the
Underlying
Funds
in
recent
years,
and
described
additional
current
and
potential
changes,
and
the
impact
of
such
changes,
to
the
investment
advisory
services
provided
to
the
Underlying
Funds
by
RIM,
which
the
Trustees
took
into
account
in
their
contract
renewal
deliberations,
including
the
following:
•
RIM
advised
the
Board
that
it
reviewed
certain
key
tenets
of
its
investment
approach
and
took
certain
measures
to
enhance
the
process
with
the
goal
to
improve
risk
adjusted
performance
over
a
market
cycle.
•
The
Direct
Management
Services
described
above.
•
RIM
advised
the
Board
that
most
remaining
discretionary
equity
Money
Managers
for
Underlying
Funds
were
converted
to
non-
discretionary
assignments,
thereby
implementing
emulation
for
most
Money
Manager
equity
assignments.
The
Board
considered
the
potential
impacts
described
in
the
Agreement
Evaluation
Information,
both
positive
and
negative,
on
the
Underlying
Funds
of
emulation.
RIM
noted
that,
in
implementing
emulation
for
Underlying
Funds,
it
assumes
various
risks,
including
trade
error
risk
as
it
takes
over
responsibility
for
trading.
RIM
generally
effects
Underlying
Fund
portfolio
transactions
through
an
affiliated
broker
that
receives
commissions
for
effecting
a
portion
of
these
transactions.
According
to
RIM,
the
Underlying
Funds
pay
the
same
commission
rates
regardless
of
whether
the
affiliate
receives
any
portion
of
the
commission.
•
RIM
advised
the
Board
that,
over
the
course
of
2019
and
in
prior
years,
it
had
reduced
the
number
of
Money
Managers
for
certain
Underlying
Funds
in
part
to
seek
more
concentrated
return
drivers.
RIM
also
advised
the
Board
that
allocations
to
Direct
Management
Services
for
certain
Underlying
Funds
were
increased
to
accommodate
the
need
for
additional
overall
portfolio
exposure
management
that
may
arise
from
more
concentrated
Money
Manager
lineups.
Additionally,
RIM
advised
the
Board
that,
in
order
to
preserve
flexibility
and
to
manage
risks
and
volatility
associated
with
Underlying
Funds
having
manager
lineups
with
fewer
Money
Managers,
and
consistent
with
the
terms
of
the
manager-of-managers
exemptive
order,
RIM
created
Money
Manager
“bench”
lineups
for
certain
Underlying
Funds,
whereby
those
Underlying
Funds
have
Board-approved
portfolio
management
contracts
with
Money
Managers
that
are
not
funded
(i.e.,
have
an
asset
allocation
of
zero).
In
the
Agreement
Evaluation
Information,
RIM
advised
the
Board
that
the
opportunity
to
decrease
a
Money
Manager’s
allocation
to
zero,
but
not
terminate
the
Money
Manager,
allows
RIM
to
potentially
realize
gains
from
strategies
that
may
have
been
overly
rewarded
in
the
marketplace
over
the
short
to
medium
term,
or
provide
the
opportunity
to
retain
capacity
with
a
Money
Manager.
The
Board
noted
that
RIM
does
not
believe
there
are
any
detriments
to
the
Underlying
Funds
or
RIM
from
the
use
of
a
manager
bench.
RIM
advised
the
Board
that,
going
forward,
RIM
may
add
managers
to
an
Underlying
Fund
with
an
existing
manager
bench
or
create
manager
bench
lineups
for
additional
Underlying
Funds.
•
RIM
has
renegotiated
fees
with
certain
Money
Managers
to
lower
levels
and
advised
the
Board
that
it
will
continue
to
assess
opportunities
for
Money
Manager
Fee
reductions
in
the
future.
Because
Money
Manager
Fees
are
paid
by
RIM
out
of
its
Advisory
Fee
from
the
Underlying
Funds,
the
foregoing
may
benefit
RIM
in
the
form
of
savings
to
RIM
from
reduced
Money
Manager
Fees.
RIM
noted
that
such
benefits
may
be
offset
partially
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Underlying
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
86
Basis
for
Approval
of
Investment
Advisory
Agreement
Funds,
and
any
costs
of
incremental
investments
or
increased
cost
allocations
that
RIM
may
incur
to
support
Direct
Management
Services.
In
evaluating
the
Funds’
and
Underlying
Funds’
Advisory
Fees,
the
Board
considered
that,
in
the
Agreement
Evaluation
Information
and
at
past
meetings,
RIM
noted
differences
between
the
investment
strategies
of
certain
Underlying
Funds
and
their
respective
Comparable
Funds
in
pursuing
their
investment
objectives.
The
Third-Party
Information
included,
among
other
things,
comparisons
of
the
Funds’
Advisory
Fees
with
the
investment
advisory
fees
of
their
Comparable
Funds
on
an
actual
basis
(i.e.,
giving
effect
to
any
fee
waivers
and/or
expense
caps
implemented
by
RIM
with
respect
to
a
Fund
and
by
the
managers
of
such
Fund’s
Comparable
Funds).
The
Third-Party
Information,
among
other
things,
showed
that
each
Fund
had
an
Advisory
Fee
which,
compared
with
the
investment
advisory
fees
of
its
respective
Comparable
Funds
on
an
actual
basis,
was
ranked
in
the
first
quintile
of
its
Expense
Universe
for
that
expense
component.
In
these
rankings,
the
first
quintile
represents
funds
with
the
lowest
investment
advisory
fees
of
its
comparable
Fund
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
investment
advisory
fees
among
the
Expense
Universe
funds.
The
comparisons
were
based
upon
the
latest
fiscal
years
for
the
Expense
Universe
funds.
In
discussing
the
Advisory
Fees
for
the
Underlying
Funds
generally,
RIM
noted,
among
other
things,
that
its
Advisory
Fees
for
the
Underlying
Funds
encompass
services
that
are
typical
to
services
provided
by
investment
advisers
to
the
Underlying
Funds’
Comparable
Funds,
as
well
as
unique
services
that
are
distinctly
different
from
those
provided
by
investment
advisers
to
the
Underlying
Funds’
Comparable
Funds,
such
as
cash
equitization
and
transition
management
efforts
that
enable
efficient
and
cost-effective
asset
transition
events.
RIM
also
advised
the
Board
that
its
profitability
generally
and
from
its
relationships
with
the
Funds
and
Underlying
Funds
declined
in
2019,
and
its
pre-tax
“margins”
in
providing
investment
advisory
services
to
the
Funds
ranked
below
the
median
of
the
margins
of
public
investment
management
company
peers
based
on
a
survey
conducted
in
2018.
RIM
has
expressed
its
view
that
Advisory
Fees
should
also
be
considered
in
the
context
of
a
Fund’s
or
Underlying
Fund’s
total
expense
ratio
to
obtain
a
complete
picture.
The
Board
considers
each
Fund’s
and
Underlying
Fund’s
Advisory
Fee
on
both
a
standalone
basis
and
in
the
context
of
the
Fund’s
or
Underlying
Fund’s
total
expense
ratio.
The
Board
has
engaged,
and
continues
to
engage,
in
discussions
with
RIM
to
identify
opportunities
for
improving
the
total
expense
comparisons
for
certain
Underlying
Funds
relative
to
their
respective
Comparable
Funds.
The
Board
previously
requested
that
RIM
provide
total
expense
ratio
management
plans
to
reduce
total
expenses
for
certain
Underlying
Funds
relative
to
their
Comparable
Funds.
At
the
Agreement
Information
Review
Meeting,
the
Board
reviewed
and
discussed
with
RIM
the
expenses
of
the
Underlying
Funds,
the
plans
that
RIM
had
previously
implemented
and
has
proposed
to
implement,
including
the
prior
and
proposed
acceleration
of
elements
of
certain
plans,
to
reduce
total
expenses
for
certain
Underlying
Funds
in
light
of
RIM’s
progress
in
meeting
plan
objectives
and
Comparable
Fund
fee
and
expense
developments
in
the
past
year.
Based
on
that
review
and
discussions
with
RIM,
the
Trustees
will
continue
to
evaluate
and
engage
in
ongoing
discussions
with
management
regarding
total
expense
comparisons
of
the
Underlying
Funds.
Based
upon
information
provided
by
RIM,
the
Board
considered
for
each
Fund
and
Underlying
Fund
whether
economies
of
scale
have
been
realized
and
whether
the
Advisory
Fee
for
such
Fund
or
Underlying
Fund
appropriately
reflects
or
should
be
revised
to
reflect
any
such
economies.
The
Board
considered,
among
other
things,
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Underlying
Funds
as
well
as
net
Fund
redemptions
or
purchases
in
recent
years.
The
Funds
and
the
RIF
Underlying
Funds
are
distributed
exclusively
through
variable
annuity
and
variable
life
insurance
contracts
issued
by
insurance
companies.
Currently,
the
Funds
are
made
available
to
holders
of
such
insurance
policies
(“Insurance
Contract
Holders”)
by
a
few
insurance
companies.
The
Funds
are
primarily
distributed
through,
and
their
assets
are
primarily
attributed
to,
The
Northwestern
Mutual
Life
Insurance
Company
(“Northwestern
Mutual”).
In
November
2018,
Northwestern
Mutual
discontinued
sales
of
the
RIF
International
Developed
Markets
Fund,
an
Underlying
Fund,
to
new
Insurance
Contract
Holders
through
its
advisory
channel
but
this
Underlying
Fund
is
still
available
to
new
and
existing
Insurance
Contract
Holders
through
Northwestern
Mutual’s
brokerage
channel.
RIM
expressed
its
belief
that
Northwestern
Mutual
is
committed
to
the
Funds
and
RIF
Underlying
Funds
and
RIM
does
not
believe
that
Northwestern
Mutual
intends
to
discontinue
sales
of
the
Funds
or
other
RIF
Underlying
Funds
to
its
Insurance
Contract
Holders
through
its
advisory
channel.
However,
the
Board
has
received
no
direct
assurances
in
this
regard
from
Northwestern
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
87
Mutual.
If
Northwestern
Mutual
were
to
discontinue
its
participation
in
the
Funds,
the
Board
considered
that
it
is
unlikely
that
the
Funds
would
remain
viable.
RIM
advised
the
Board
that
its
near-term
business
plan
is
to
retain
existing
RIF
complex
assets
with
intermediate-term
plans
centering
on
opportunistic
business
development
efforts
related
to
RIF
Fund
placement
in
the
insurance
channel.
RIM
previously
expressed
its
belief
that
the
Funds
will
remain
viable
in
the
near
term,
and
the
Board
was
not
advised
of
any
change
in
RIM’s
belief
in
this
regard.
The
Board
considered,
among
other
things,
the
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
variable
annuity
and
variable
life
insurance
policyholders.
With
respect
to
each
Underlying
Fund,
the
Board
considered
any
Advisory
Fee
waivers
or
other
expense
limitation
arrangements
that
had
been
implemented
in
the
past
year
or
may
be
implemented
in
the
future.
The
Board
also
considered
that
fees
payable
to
RIM
or
its
affiliates
by
institutional
clients
with
investment
objectives
similar
to
those
of
the
Funds
and
the
Underlying
Funds,
in
some
cases,
are
lower,
and
may
be
substantially
lower,
than
the
rates
paid
by
the
Funds,
the
Underlying
Funds
and
Other
RIM
Funds.
The
Trustees
considered
the
differences
in
the
nature
and
scope
of
services
RIM
provides
to
institutional
clients
and
the
Funds
and
the
Underlying
Funds.
RIM
explained,
among
other
things,
that
institutional
products
have
fewer
compliance,
administrative,
client
servicing/
communication
and
other
needs
than
the
Funds
and
the
Underlying
Funds.
RIM
also
noted
that
due
to
the
number
and
nature
of
investors,
along
with
their
varied
needs
for
liquidity,
there
is
more
portfolio
liquidity
management
and
cash
flow
management
required
for
the
Funds
and
the
Underlying
Funds
than
for
RIM’s
institutional
clients,
where
assets
are
relatively
stable.
In
addition,
RIM
noted
that
the
Funds
and
the
Underlying
Funds
are
subject
to
heightened
regulatory
requirements
relative
to
institutional
clients.
Accordingly,
the
Trustees
concluded
that
the
services
provided
to
the
Funds
and
Underlying
Funds
are
sufficiently
different
from
the
services
provided
to
the
other
clients
that
comparisons
are
not
probative
and
should
not
be
given
significant
weight.
With
respect
to
the
Funds’
total
expenses,
the
Third-Party
Information
showed
that
the
total
expenses
for
the
Balanced
Strategy
Fund
ranked
in
the
first
quintile
of
its
Expense
Universe,
and
the
total
expenses
of
each
other
Fund
ranked
in
the
second
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
the
funds
with
the
lowest
total
expenses
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
total
expenses
among
the
Expense
Universe
funds.
On
the
basis
of
the
Agreement
Evaluation
Information,
and
other
information
previously
received
by
the
Board
from
RIM
during
the
course
of
prior
years,
or
presented
at
or
in
connection
with
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting
by
RIM,
the
Board,
in
respect
of
each
Fund
and
Underlying
Fund,
found,
after
giving
effect
to
the
total
expense
ratio
management
plans
or
any
other
waivers
or
expense
caps
for
the
Underlying
Funds,
and
considering
any
differences
in
the
composition
of
the
Expense
Universe
and
investment
strategies
of
its
respective
Comparable
Funds
and
in
light
of
other
factors
discussed
above:
(1)
the
Advisory
Fee
charged
by
RIM
was
acceptable
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
advisory
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
or
Underlying
Fund
and
to
provide
continuity
of
investment
advisory
and
other
services
by
RIM
to
the
Fund
or
Underlying
Fund;
(2)
except
as
noted
above,
the
relative
expense
ratio
of
each
Fund
and
Underlying
Fund
either
was
comparable
to
those
of
its
Comparable
Funds
or
RIM
had
provided
an
explanation
satisfactory
to
the
Board
as
to
why
the
relative
expense
ratio
was
not
comparable
to
those
of
its
Comparable
Funds;
(3)
other
benefits
and
fees
received
by
RIM
or
its
affiliates
from
the
Fund
or
Underlying
Fund
identified
in
the
Agreement
Evaluation
Information
were
not
considered
to
be
excessive;
(4)
RIM’s
reported
profitability
with
respect
to
the
Fund
and
Underlying
Fund
was
not
considered
to
be
excessive
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided
by
RIM
and
applicable
judicial
and
regulatory
guidance;
and
(5)
the
Advisory
Fee
charged
by
RIM
appropriately
reflects
any
economies
of
scale
realized
by
such
Fund
or
Underlying
Fund
in
light
of
various
factors,
including
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
Insurance
Contract
Holders;
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Underlying
Funds;
and
RIM’s
advice
that
it
does
not
believe
it
will
experience
meaningful
economies
of
scale.
The
Board
concluded
that,
under
the
circumstances
and
based
on
RIM’s
performance
information
and
reviews
for
each
Fund
and
Underlying
Fund,
the
performance
of
each
of
the
Funds
and
Underlying
Funds
is
consistent
with
continuation
of
the
RIM
Agreement.
The
Board
noted
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-
beating
returns
with
above-average
consistency.
In
assessing
the
performance
of
the
Funds
and
the
Underlying
Funds
with
at
least
three
years
of
performance
history,
the
Board
focused
upon
performance
for
the
3-year
period
ended
December
31,
2019
as
most
relevant,
but
also
considered
Fund
and
Underlying
Fund
performance
for
the
1-year
and,
where
applicable,
5-year
periods
ended
such
date.
In
reviewing
the
performance
of
the
Funds
and
Underlying
Funds
generally,
the
Board
took
into
consideration
various
steps
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
88
Basis
for
Approval
of
Investment
Advisory
Agreement
taken
by
RIM
in
the
past
year
to
enhance
the
performance
of
certain
Underlying
Funds,
including
changes
in
Money
Managers
or
their
allocations,
and
RIM’s
implementation
or
expansion
of
its
Direct
Management
Services
and
other
strategies,
which
may
not
yet
be
fully
reflected
in
Underlying
Fund
investment
results.
With
respect
to
the
Moderate
Strategy
Fund
and
Balanced
Strategy
Fund,
the
Third-Party
Information
showed
that
each
Fund’s
performance
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe
for
the
1-
and
3-year
periods
ended
December
31,
2019,
and
the
fourth
quintile
of
its
Performance
Universe
for
the
5-year
period
ended
such
date.
With
respect
to
the
Growth
Strategy
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe
for
each
of
the
1-,
3-
and
5-year
periods
ended
December
31,
2019.
With
respect
to
the
Equity
Growth
Strategy
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe
for
the
3-year
period
ended
December
31,
2019,
and
the
fourth
quintile
of
its
Performance
Universe
for
the
1-
and
5-year
periods
ended
such
date.
The
Board
considered
RIM’s
explanation
that
the
Fund’s
underperformance
relative
to
its
Comparable
Funds
was
primarily
due
to
asset
allocation
differences
compared
to
the
Performance
Universe.
RIM
noted,
among
other
things,
that
the
Fund
has
exposure
to
more
diversified
and,
in
some
cases,
growth-oriented
asset
classes
beyond
traditional
equities
(such
as
global
high
yield
debt,
emerging
market
debt,
global
real
estate,
infrastructure
and
commodities),
which
are
intended
to
provide
diversification
benefits
and
dampen
volatility.
RIM
explained
that
in
the
strong
rising
equity
environment
experienced
over
the
period,
the
Funds’
exposures
to
these
asset
classes,
particularly
to
commodities,
were
headwinds
relative
to
peers.
The
Board
also
considered
RIM’s
explanation
that
the
Funds
have
a
non-U.S.
bias
and
a
lower
U.S.
equity
allocation
relative
to
peers,
which
negatively
impacted
peer-relative
performance
during
the
period.
RIM
noted
that
the
Funds’
strategic
asset
allocations
were
changed
in
November
2019,
and
while
the
Funds
continue
to
maintain
a
more
diversified
strategic
asset
allocation
relative
to
the
peer
average,
RIM
expressed
its
belief
the
current
strategic
asset
allocations
are
appropriate
over
the
longer
term.
In
evaluating
performance,
the
Board
considered
each
Fund’s
and
Underlying
Fund’s
performance
not
only
relative
to
its
Comparable
Funds,
but
also
in
absolute
terms
and
relative
to
appropriate
benchmarks
and
indices.
The
Board
considered
the
Underlying
Funds’
performance
relative
to
their
benchmarks
in
light
of
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
For
the
1-year
period
ended
December
31,
2019,
the
RIC
Emerging
Markets
Fund,
RIC
Opportunistic
Credit
Fund,
RIC
Unconstrained
Total
Return
Fund,
RIF
Strategic
Bond
Fund,
RIC
Investment
Grade
Bond
Fund,
RIC
Short
Duration
Bond
Fund,
RIC
Commodity
Strategies
Fund
and
RIC
Global
Infrastructure
Fund
outperformed
their
benchmarks;
for
the
3-year
period
ended
December
31,
2019,
the
RIC
Opportunistic
Credit
Fund,
RIC
Unconstrained
Total
Return
Fund,
RIC
Short
Duration
Bond
Fund,
RIC
Global
Infrastructure
Fund
and
RIF
Global
Real
Estate
Securities
Fund
outperformed
their
benchmarks;
and
for
the
5-year
period
ended
December
31,
2019,
the
RIC
Opportunistic
Credit
Fund,
RIC
Short
Duration
Bond
Fund,
RIC
Global
Infrastructure
Fund
and
RIF
Global
Real
Estate
Securities
Fund
outperformed
their
benchmarks.
The
Board
also
considered
the
Money
Manager
changes
that
have
been
made
during
the
past
year
and
that
the
performance
of
Money
Managers
continues
to
impact
the
performance
of
the
Funds
and
Underlying
Funds
for
periods
prior
and
subsequent
to
their
termination.
Lastly,
the
Board
considered
the
implementation
of
additional
strategies
and
refinements
to
strategies
discussed
in
the
Agreement
Information
Materials
and
prior
Board
meetings
that
may
be
employed
by
RIM
in
respect
of
certain
Funds
and
Underlying
Funds.
After
considering
the
foregoing
and
other
relevant
factors,
including
factors
described
above,
the
Board
concluded
in
respect
of
each
Fund
and
Underlying
Fund
that
continuation
of
the
RIM
Agreement
would
be
in
the
best
interest
of
such
Fund
and
its
shareholders
and
voted
to
approve
the
continuation
of
the
RIM
Agreement.
At
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting,
with
respect
to
the
evaluation
of
the
terms
of
portfolio
management
contracts
with
Money
Managers
for
the
Underlying
Funds,
the
Board
received
and
considered
information
from
RIM
reporting,
among
other
things,
for
each
Money
Manager,
the
Money
Manager’s
performance
over
various
periods;
RIM’s
assessment
of
the
performance
of
each
Money
Manager;
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Funds’
and
Underlying
Funds’
underwriter;
and
RIM’s
recommendation
to
retain
each
discretionary
or
non-discretionary
Money
Manager
on
the
current
terms
and
conditions,
including
at
the
current
fee
rate.
The
Board
received
reports
during
the
course
of
the
year
from
the
Funds’
CCO
regarding
her
assessments
of
Money
Manager
compliance
programs
and
any
compliance
issues.
RIM
did
not
identify
any
benefits
from
the
Underlying
Funds’
portfolio
transactions
received
by
Money
Managers
or
their
affiliates
other
than
potential
benefits
from
soft
dollar
arrangements
or
commissions
paid
to
any
affiliated
broker-
dealer
through
which
a
discretionary
Money
Manager
may
execute
trades.
The
Agreement
Evaluation
Information
(1)
described
RIM’s
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
89
oversight
of
the
discretionary
Money
Managers’
soft
dollar
arrangements,
(2)
expressed
RIM’s
belief
that,
based
upon
certifications
from
Money
Managers
and
pre-hire
and
ongoing
reviews
of
Money
Manager
documents
and
their
implementation,
the
discretionary
Money
Managers’
soft
dollar
programs
and
policies
and
procedures
are
consistent
with
applicable
legal,
regulatory
and
fiduciary
standards
and
(3)
stated
that
periodic
discretionary
Money
Manager
reviews
are
designed
to
(among
other
things)
obtain
reasonable
assurance
that
the
Money
Manager’s
actual
soft
dollar
practices
are
consistent
with
what
is
stated
in
their
policies
and
procedures
and
with
disclosures
made
by
Money
Managers
in
their
investment
adviser
registration
statements
filed
with
the
SEC.
RIM
recommended
that
each
of
the
Money
Managers
be
retained
for
its
current
discretionary
or
non-discretionary
assignment
at
its
current
fee
rate.
In
doing
so,
RIM,
as
it
has
in
the
past,
advised
the
Board
that
it
does
not
regard
Money
Manager
profitability
as
relevant
to
its
evaluation
of
the
portfolio
management
contracts
with
Money
Managers
because
the
willingness
of
Money
Managers
to
serve
in
such
capacity
depends
upon
arm’s-length
negotiations
with
RIM;
RIM
is
aware
of
the
standard
fee
rates
charged
by
Money
Managers
to
other
clients;
and
RIM
believes
that
the
fees
agreed
upon
with
Money
Managers
are
reasonable
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered.
The
Board
accepted
RIM’s
explanation
of
the
relevance
of
Money
Manager
profitability
in
light
of
RIM’s
belief
that
such
fees
are
reasonable;
the
Board’s
findings
as
to
the
acceptability
of
the
Advisory
Fee
paid
by
each
Underlying
Fund;
and
the
fact
that
each
Money
Manager’s
fee
is
paid
by
RIM.
At
the
Agreement
Evaluation
Meeting,
RIM
reported
that
it
planned
to
recommend
to
the
Board
at
the
May
19,
2020
quarterly
Board
meeting
the
appointment
and
termination
of
certain
Money
Managers
and
new
portfolio
management
contracts
with
certain
Money
Managers
due
to
an
upcoming
change
in
control.
Based
upon
RIM’s
recommendations,
together
with
relevant
Agreement
Evaluation
Information,
the
Board
concluded
that
the
fees
paid
to
the
Money
Managers
of
each
Underlying
Fund
are
acceptable
in
light
of
RIM’s
assessment
of
quality
of
the
investment
advisory
services
provided
and
that
continuation
of
the
portfolio
management
contract
with
each
Money
Manager
of
each
Underlying
Fund
would
be
in
the
best
interests
of
such
Underlying
Fund
and
its
shareholders.
*
*
*
This
discussion
is
not
intended
to
include
all
of
the
factors
and
information
considered
by
the
Board.
In
their
deliberations,
the
Trustees
did
not
identify
any
particular
information
as
to
the
RIM
Agreement
or,
other
than
RIM’s
recommendation,
the
portfolio
management
contract
with
any
Money
Manager
for
an
Underlying
Fund
that
was
all-important
or
controlling,
except,
in
the
case
of
the
RIM
Agreement,
the
need
to
continue
the
managers-of-managers
structure
of
the
Underlying
Funds,
and
each
Trustee
attributed
different
weights
to
the
various
factors
considered.
The
Trustees
evaluated
all
information
available
to
them
on
a
Fund-by-Fund
basis
and
their
determinations
were
made
in
respect
of
each
Fund
and
Underlying
Fund.
Russell
Investment
Funds
Liquidity
Risk
Management
Program
—
(Unaudited)
90
Liquidity
Risk
Management
Program
The
Funds
have
adopted
and
implemented
a
liquidity
risk
management
program
(the
“Program”)
in
accordance
with
Rule
22e-4
of
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”).
The
Program
seeks
to
assess,
manage,
and
review
each
Fund’s
“liquidity
risk.”
For
purposes
of
the
Liquidity
Rule,
“liquidity
risk”
is
defined
as
the
risk
that
a
Fund
is
unable
to
satisfy
redemption
requests
without
significantly
diluting
remaining
investors’
interests
in
the
Fund.
The
Program
is
comprised
of
various
components
designed
to
support
the
assessment
and/or
management
of
liquidity
risk,
including:
Assessment,
management
and
periodic
review
of
each
Fund’s
liquidity
risk;
Classification
of
each
Fund’s
investments
into
four
categories
or
liquidity
buckets
based
on
how
long
it
would
take
to
convert
the
investment
to
cash
(the
“Classification
Regime”);
Establishment
and
annual
review
of
a
highly
liquid
investment
minimum
(“HLIM”)
for
each
Fund
that
does
not
invest
primarily
in
“highly
liquid”
investments
(as
defined
under
the
Liquidity
Rule);
Requirements
applicable
to
a
Fund’s
holdings
of
“illiquid
investments”
(as
defined
under
the
Liquidity
Rule);
and
Implementation
of
redemption
in-kind
policies
and
procedures.
The
Board
of
Trustees
of
RIF
(the
“Board”)
appointed
RIM,
the
Funds’
investment
adviser,
as
the
Program
administrator
(the
“Program
Administrator”).
The
Program
Administrator
has
delegated
responsibility
to
implement
and
administer
the
Program,
subject
to
oversight
by
the
Program
Administrator,
to
one
or
more
RIM
associates
(the
“Program
Administrator
Delegate”).
The
Program
Administrator,
through
the
Program
Administrator
Delegate,
monitors
the
adequacy
and
effectiveness
of
the
Program’s
implementation
and
on
a
periodic
basis
assesses
each
Fund’s
liquidity
risk
based
on
a
variety
of
factors.
At
the
May
18,
2020
meeting
of
the
Regulatory
and
Investment
Compliance
Committee
of
the
Board
(the
“Meeting”),
the
Program
Administrator
reviewed
with
all
members
of
the
Board
the
Program
Administrator’s
initial
written
report
(the
“Report”)
addressing
the
Program’s
operation
as
well
as
the
adequacy
and
effectiveness
of
its
implementation
for
the
period
from
December
1,
2018
through
December
31,
2019
(the
“Program
Reporting
Period”).
The
Report
summarized
the
factors
considered
by
the
Program
Administrator
in
assessing
whether
the
Program
has
been
adequately
and
effectively
implemented
with
respect
to
each
Fund.
Such
information
and
factors
included,
among
other
things:
(1)
the
framework
used
to
assess,
manage,
and
periodically
review
each
Fund’s
liquidity
risk
and
the
results
of
this
assessment;
(2)
the
methodology
and
inputs
used
in
connection
with
the
Classification
Regime;
(3)
whether
a
new
HLIM
should
be
established,
or
an
existing
HLIM
continued
or
modified,
for
each
Fund
and
the
procedures
for
monitoring
for
HLIM
compliance;
(4)
whether
a
Fund
invested
more
than
15%
of
its
assets
in
illiquid
investments
and
the
procedures
for
monitoring
for
this
limit;
and
(5)
specific
liquidity
events
arising
during
the
Program
Reporting
Period,
including
the
impact
on
Fund
liquidity
caused
by
extended
non-U.S.
market
closures.
The
Board
also
received
information
prior
to
and
as
part
of
the
Meeting
relating
to
the
Program’s
operation
subsequent
to
the
Reporting
Period
in
light
of
the
COVID-19
crisis.
There
were
no
changes
to
the
Funds’
written
policies
and
procedures
related
to
the
Program
during
the
Program
Reporting
Period
but
the
Board
was
informed
of
certain
clarifications
to
such
written
policies
and
procedures
that
would
be
implemented
following
the
Meeting.
Based
on
the
Program
Administrator’s
review
and
the
factors
set
forth
in
the
Report,
the
Report
concluded
that:
(1)
the
Program
continues
to
be
reasonably
designed
to
effectively
assess
and
manage
each
Fund’s
liquidity
risk;
(2)
each
Fund’s
liquidity
risk
continues
to
be
appropriate
in
light
of
the
Fund’s
investment
objective
and
strategies;
(3)
each
Fund’s
investment
strategies
continue
to
be
appropriate
for
an
open-ended
management
investment
company;
and
(4)
the
Program
has
been
adequately
and
effectively
implemented
with
respect
to
each
Fund,
including
the
establishment
and
operation
of
the
HLIM
for
applicable
Funds.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Shareholder
Requests
for
Additional
Information
—
June
30,
2020
(Unaudited)
Shareholder
Requests
for
Additional
Information
91
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
—
June
30,
2020
(Unaudited)
92
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
nine
funds.
Each
of
the
Trustees
is
a
trustee
of
RIC
and
RIF.
The
first
table
provides
information
for
the
Independent
Trustees.
The
second
table
provides
information
for
the
Trustee
Emeritus.
The
third
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;
and
Mr.
Thompson
has
had
experience
in
business,
governance,
investment
and
financial
reporting
matters
as
a
senior
executive
of
an
organization
sponsoring
and
managing
other
investment
companies,
and,
subsequently,
has
served
as
a
board
member
of
other
investment
companies.
*
Each
Trustee
shall
retire
from
service
on
the
Board
of
Trustees
at
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
However,
at
the
discretion
of
the
Board
and
upon
the
request
of
the
Trustee,
a
one-year
waiver
may
be
granted
from
the
application
of
the
policy,
which
will
allow
the
Trustee
to
continue
to
serve
on
the
Board
for
an
additional
one-year
period
following
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
A
maximum
of
five
one-year
waivers
may
be
requested
by
the
Trustee
and
granted
by
the
Board
to
the
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
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
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)
43
Lead
Independent
Director,
Avista
Corp.
(electric
utilities)
Until
May
2017,
Director,
Avista
Corp
(electric
utilities)
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2020
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
93
*
Each
Trustee
shall
retire
from
service
on
the
Board
of
Trustees
at
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
However,
at
the
discretion
of
the
Board
and
upon
the
request
of
the
Trustee,
a
one-year
waiver
may
be
granted
from
the
application
of
the
policy,
which
will
allow
the
Trustee
to
continue
to
serve
on
the
Board
for
an
additional
one-year
period
following
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
A
maximum
of
five
one-year
waivers
may
be
requested
by
the
Trustee
and
granted
by
the
Board
to
the
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)
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)
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
Chairman
of
Regulatory
and
Investment
Compliance
Committee
since
2020
Appointed
until
successor
is
duly
elected
and
qualified
Retired
43
Until
October
2015,
Trustee,
Russell
Exchange
Traded
Funds
Trust
Julie
Dien
Ledoux,
Born
August
17,
1969
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2019
Appointed
until
successor
is
duly
elected
and
qualified
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
43
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2020
(Unaudited)
94
Disclosure
of
Information
about
Fund
Trustees
and
Officers
*
Each
Trustee
shall
retire
from
service
on
the
Board
of
Trustees
at
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
However,
at
the
discretion
of
the
Board
and
upon
the
request
of
the
Trustee,
a
one-year
waiver
may
be
granted
from
the
application
of
the
policy,
which
will
allow
the
Trustee
to
continue
to
serve
on
the
Board
for
an
additional
one-year
period
following
the
end
of
the
calendar
year
in
which
the
Trustee
reaches
75
years
of
age.
A
maximum
of
five
one-year
waivers
may
be
requested
by
the
Trustee
and
granted
by
the
Board
to
the
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
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
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
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
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2020
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
95
Name,
Age,
Address
Positions(s)
Held
With
Fund
and
Length
of
Time
Served
Term
of
Office
Principal
Occupation(s)
During
the
Past
5
Years
OFFICERS
(continued)
Mark
E.
Swanson,
Born
November
26,
1963
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
President
and
Chief
Executive
Officer
since
2020
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
President,
Chief
Executive
Officer,
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
Executive
Officer,
Asia
Pacific,
Russell
Investments
President,
RIM
Mary
Beth
R.
Albaneze,
Born
April
25,
1969
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Secretary
and
Chief
Legal
Officer
since
2010
Until
successor
is
chosen
and
qualified
by
Trustees
Associate
General
Counsel,
Russell
Investments
Secretary,
RIM,
RIFUS
and
RIFIS
Secretary
and
Chief
Legal
Officer,
RIC
and
RIF
Assistant
Secretary,
U.S.
One,
LLC
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Adviser
and
Service
Providers
—
June
30,
2020
(Unaudited)
96
Adviser
and
Service
Providers
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
E.
Swanson,
President,
Chief
Executive
Officer,
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
Item 2. Code of Ethics. [Annual Report Only]
Item 3. Audit Committee Financial Expert. [Annual Report Only]
Item 4. Principal Accountant Fees and Services. [Annual Report Only]
Item 5. Audit Committee of Listed Registrants. [Not Applicable]
Item 6. [Schedules of Investments are included as part of the Report to Shareholders filed under Item 1 of this form]
Items 7-9. [Not Applicable]
Item 10. Submission of Matters to a Vote of Security Holders
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures
(a) Registrant's principal executive officer and principal financial officer have concluded that Registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of these controls and procedures as of a date within 90 days of the date this report is filed with the Securities and Exchange Commission.
(b) There were no significant changes in Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected or is likely to materially affect Registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies [Not Applicable]
Item 13. Exhibit List
(a) Certification for principal executive officer of Registrant as required by Rule 30a-2(a) under the Act and certification for principal financial officer of Registrant as required by Rule 30a-2(a) under the Act. ex99_cert
(b) Certification for principal executive officer and principal financial officer of Registrant as required by Rule 30a-2(b) under Act. ex99_906cert
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Russell Investment Funds
By: /s/ Mark E. Swanson
Mark E. Swanson
President, Chief Executive Officer, Treasurer, Chief Accounting Officer and Chief Financial Officer, Russell Investment Funds
Date: August 13, 2020