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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 Albaneze, Secretary and Chief Legal Officer
1301 2nd Avenue
18th Floor
Seattle, Washington 98101
206-505-4846
______________________________________________
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-787-7354
Date of fiscal year end: December 31
Date of reporting period: January 1, 2020 to December 31, 2020
Item 1. Reports to Stockholders
2020
ANNUAL
REPORT
Russell
Investment
Funds
DECEMBER
31,
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
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
supported
by
your
financial
professional
or
variable
annuity
provider,
you
may
elect
to
receive
shareholder
reports
and
other
Fund
communications
electronically.
Please
contact
your
financial
professional
or
variable
annuity
provider
for
more
information.
You
may
elect
to
receive
all
future
shareholder
reports
in
paper
free
of
charge.
Please
contact
your
financial
profes-
sional
or
variable
annuity
provider
to
inform
them
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports.
Your
election
to
receive
reports
in
paper
will
apply
to
all
Russell
Investment
Funds
and
other
funds
you
hold
with
your
financial
professional
or
variable
annuity
provider.
Russell
Investment
Funds
Russell
Investment
Funds
is
a
series
investment
company
with
nine
different
investment
portfolios
referred
to
as
Funds.
These
financial
statements
report
on
five
of
these
Funds.
Page
To
Our
Shareholders
3
U.S.
Strategic
Equity
Fund
4
U.S.
Small
Cap
Equity
Fund
23
International
Developed
Markets
Fund
51
Strategic
Bond
Fund
77
Global
Real
Estate
Securities
Fund
131
Notes
to
Schedules
of
Investments
151
Notes
to
Financial
Highlights
153
Notes
to
Financial
Statements
154
Report
of
Independent
Registered
Public
Accounting
Firm
174
Tax
Information
175
Affiliated
Brokerage
Transactions
176
Basis
for
Approval
of
Investment
Advisory
Contracts
177
Shareholder
Requests
for
Additional
Information
178
Disclosure
of
Information
about
Fund
Trustees
and
Officers
179
Adviser,
Money
Managers
and
Service
Providers
183
Russell
Investment
Funds
Annual
Report
December
31,
2020
Table
of
Contents
Russell
Investment
Funds
Copyright
©
Russell
Investments
2021.
All
rights
reserved.
Russell
Investments’
ownership
is
composed
of
a
majority
stake
held
by
funds
managed
by
TA
Associates
with
minority
stakes
held
by
funds
managed
by
Reverence
Capital
Partners
and
Russell
Investments’
management.
Frank
Russell
Company
is
the
owner
of
the
Russell
trademark
contained
in
this
material
and
all
trademark
rights
related
to
the
Russell
trademarks,
which
the
members
of
the
Russell
Investment
group
of
companies
are
permitted
to
use
under
license
from
Frank
Russell
Company.
The
members
of
the
Russell
Investments
group
of
companies
are
not
affiliated
in
any
manner
with
Frank
Russell
Company
or
any
entity
operation
under
the
“FTSE
RUSSELL”
brand.
Fund
objectives,
risks,
charges
and
expenses
should
be
carefully
considered
before
in-
vesting.
A
prospectus
containing
this
and
other
important
information
must
precede
or
accompany
this
material.
Please
read
the
prospectus
carefully
before
investing.
Securities
distributed
through
Russell
Investments
Financial
Services,
LLC,
member
FINRA
and
part
of
Russell
Investments.
Indices
and
benchmarks
are
unmanaged
and
cannot
be
invested
in
directly.
Returns
represent
past
performance,
are
not
a
guarantee
of
future
performance,
and
are
not
indicative
of
any
specific
investment.
Index
return
information
is
provided
by
vendors
and
although
deemed
reliable,
is
not
guaranteed
by
Russell
Investments
or
its
affiliates.
Performance
quoted
represents
past
performance
and
does
not
guarantee
future
results.
The
investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
To
Our
Shareholders
To
Our
Shareholders
3
Fellow
Investors,
Our
primary
focus
has
never
changed:
It
is
to
improve
the
financial
security
of
our
investors.
We
believe
that
the
combination
of
our
investment
solutions,
a
sound
plan
and
timely
investment
advice
provides
the
best
strategy
for
those
individuals
seeking
to
navigate
the
difficult
world
of
investing.
Your
financial
security
is
the
reason
we
work
hard
to
maintain
a
time-tested,
disciplined
investment
approach,
focused
on
meeting
our
clients’
financial
needs.
The
chaotic
year
of
2020,
with
the
combination
of
COVID-19
and
presidential
elections,
has
made
for
a
bumpy
ride,
with
a
dramatic
return
of
market
volatility:
For
the
one-year
period
ended
December
31,
2020,
despite
market
volatility,
U.S.
equities
returned
18.40%,
according
to
the
S&P
500
®
Index.
*
In
comparison,
non-U.S.
equities,
as
measured
by
the
MSCI
EAFE
Index,
provided
a
return
of
7.82%
over
the
one-year
period.
*
The
volatility
of
2020
made
it
challenging
for
some
individuals
to
stick
to
their
investment
plans.
It
can
be
quite
tempting
to
get
distracted
and
try
to
move
to
those
areas
that
have
been
working,
abandoning
those
that
have
not.
But
if
this
year
has
taught
us
any
lesson,
it
is
that
we
believe
those
who
stick
to
their
long-term
investment
plans
are
consistently
rewarded.
As
a
forward-looking
firm,
we
maintain
our
focus
and
look
to
position
our
funds
for
the
year
ahead,
not
the
one
that
has
just
passed.
With
this
in
mind,
we
hold
the
following
views
on
markets:
We
continue
to
believe
in
diversifying
globally.
We
prefer
non-U.S.
equities
to
U.S.
equities.
We
expect
the
post-
vaccine
economic
recovery
to
favor
undervalued
cyclical
value
stocks
over
expensive
technology
and
growth
stocks.
We
like
the
value
in
emerging
markets
(EM)
equities.
We
believe
China’s
early
exit
from
the
lockdown
and
stimulus
measures
will
likely
benefit
EM
more
broadly,
as
should
the
recovery
in
global
demand
and
a
weaker
U.S.
dollar.
We
believe
that
vaccine
prospects
are
likely
to
make
2021
a
year
of
global
economic
recovery.
While
markets
have
priced
in
a
fair
amount
of
the
good
news,
more
gains
seem
possible
as
corporate
profits
rebound
and
central
banks
remain
on
hold.
With
the
world
in
the
early
post-recession
recovery
phase
of
the
business
cycle,
our
medium-term
outlook
for
economies
and
corporate
earnings
is
positive.
We
believe
that
2021
will
feature
an
extended
period
of
low-inflation,
low-interest
rate
growth
that
favors
equities
over
bonds.
Let
me
reiterate
that
at
Russell
Investments,
our
stated
purpose
is
to
improve
people’s
financial
security.
We
have
a
long
heritage
of
providing
solutions
to
help
investors
like
you
reach
your
financial
goals,
whether
you’re
saving
for
retirement,
already
depending
on
retirement
income
or
building
a
college
fund.
There
is
nothing
we
value
more
than
the
trust
you
have
placed
in
our
firm.
All
of
us
at
Russell
Investments
appreciate
the
opportunity
to
help
you
achieve
your
own
financial
security.
Best
regards,
Peter
Gunning
Global
Chief
Investment
Officer,
Russell
Investments
*
Source:
S&P
and
MSCI.
Indexes
are
unmanaged
and
cannot
be
invested
in
directly.
The
S&P
500
Index
is
an
index,
with
dividends
reinvested,
of
500
issues
representative
of
leading
companies
in
the
U.S.
large
cap
securities
market.
The
MSCI
EAFE
Index
is
an
equity
index
which
captures
large
and
mid
cap
representation
across
21
developed
markets
countries
around
the
world,
excluding
the
US
and
Canada.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
4
U.S.
Strategic
Equity
Fund
U.S.
Strategic
Equity
Fund
Total
Return
1
Year
23
.84%
5
Years
14
.27%§
10
Years
12
.79%§
Russell
1000
®
Index
**
Total
Return
1
Year
20
.96%
5
Years
15
.60%§
10
Years
14
.01%§
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
U.S.
Strategic
Equity
Fund
5
The
U.S.
Strategic
Equity
Fund
(the
“Fund”)
employs
a
multi-
manager
approach
whereby
portions
of
the
Fund
are
allocated
to
different
money
manager
strategies.
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
advisor.
RIM
may
change
a
Fund’s
asset
allocation
at
any
time,
including
not
allocating
Fund
assets
to
one
or
more
money
manager
strategies.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2020,
the
Fund
had
four
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
long
term
capital
growth.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
gained
23.84%.
This
is
compared
to
the
Fund’s
benchmark,
the
Russell
1000
®
Index,
which
gained
20.96%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Large
Blend
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
17.12%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
RIM
may
assign
a
money
manager
a
specific
style
or
capitalization
benchmark
other
than
the
Fund’s
index.
However,
the
Fund’s
primary
index
remains
the
benchmark
for
the
Fund
and
is
representative
of
the
aggregate
of
each
money
manager’s
benchmark
index.
How
did
market
conditions
affect
the
Fund’s
performance?
Investor
sentiment
was
volatile
during
the
fiscal
year
given
the
global
spread
of
the
coronavirus
and
the
uncertainty
around
its
progression,
the
extent
of
economic
damage
and
the
effectiveness
of
global
policy
response.
In
March
and
April,
governments
worldwide
implemented
strict
measures,
including
social
distancing,
business
closures,
travel
restrictions
and
quarantines.
These
necessary
health
measures
adversely
affected
the
global
economy
and
financial
markets.
To
offset
the
impact,
central
banks
and
governments
around
the
globe
stepped
in
to
provide
monetary
and
fiscal
stimulus.
During
the
second
half
of
2020,
the
U.S.
economy
saw
increased
activity
with
job
gains
and
consumption
markedly
accelerating.
Historic
fiscal
and
monetary
stimulus
supported
these
trends,
as
well
as
the
recovery
of
equity
markets.
Towards
the
end
of
the
year,
multiple
COVID-19
vaccines
were
found
to
be
highly
effective
and
approved
for
emergency
use
in
the
United
States
and
Europe.
This
allowed
markets
to
overlook
the
growing
number
of
COVID-19
cases
as
winter
months
and
holiday
gatherings
brought
many
people
together.
Over
the
year,
growth
stocks
outperformed
value
stocks
and
large
cap
stocks
outperformed
small
cap
stocks.
The
coronavirus
accelerated
trends
in
e-commerce,
cloud
computing,
online
advertising
and
remote
work.
The
accelerated
search
for
a
coronavirus
vaccine
and
treatment
also
provided
a
tailwind
for
companies
in
the
health
care
sector.
On
the
other
side,
airlines,
oil
&
gas
companies
and
banks
were
hit
particularly
hard
by
the
pandemic.
Information
technology
and
health
care
were
among
the
best
performing
sectors
while
energy
and
financials
sectors
lagged.
However,
as
a
result
of
positive
vaccine
news
and
the
prospects
of
a
gradual
return
to
‘normalcy’,
small
cap
and
value-oriented
stocks
that
are
most
closely
tied
to
economic
fundamentals
experienced
strong
returns
in
the
fourth
quarter
of
2020.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
Over
the
period,
the
Fund
maintained
exposure
to
moderately
priced
securities
with
low
price
momentum
as
well
as
companies
with
lower
financial
leverage
and
higher
growth
characteristics.
Additionally,
the
Fund
was
tilted
away
from
the
largest
market
capitalization
stocks.
Overall,
the
Fund’s
factor
tilts
provided
mixed
results
as
a
tilt
toward
higher
growth
stocks
was
rewarded
while
overweights
to
smaller
market
capitalization
and
lower
valuation
stocks
detracted
from
relative
performance.
From
a
sector
standpoint,
the
Fund
was
positioned
toward
more
cyclical
areas
of
the
market
in
expectation
of
robust
consumption,
continued
employment
gains,
and
low
interest
rates
in
the
short
term.
Sector
allocation
decisions
were
positive
over
the
period,
including
overweights
to
the
consumer
discretionary
and
information
technology
sectors
and
underweights
to
the
consumer
staples
and
real
estate
sectors.
Stock
selection
by
the
Fund’s
money
managers
was
a
positive
contributor
to
benchmark
relative
performance
during
the
period,
led
by
outperforming
holdings
within
the
information
technology
and
materials
sectors.
The
Fund
employs
discretionary
and
non-discretionary
money
managers.
The
Fund’s
discretionary
money
managers
select
the
individual
portfolio
securities
for
the
assets
assigned
to
them.
The
Fund’s
non-discretionary
money
managers
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
6
U.S.
Strategic
Equity
Fund
Fund.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
certain
of
the
Fund’s
money
managers,
Brandywine
Global
Investment
Management,
LLC
outperformed
the
Russell
1000
®
Value
Index.
Overweights
to
the
health
care
and
materials
sectors
were
beneficial.
Stock
selection
within
the
materials,
information
technology,
and
industrials
sectors
was
the
primary
driver
of
relative
outperformance.
Jackson
Square
Partners,
LLC
outperformed
the
Russell
1000
®
Growth
Index.
Sector
allocation
decisions
were
positive,
including
underweights
to
the
industrials
and
consumer
staples
sectors.
Security
selection
within
the
information
technology
and
communication
services
sectors
was
the
primary
driver
of
relative
outperformance.
During
the
period,
RIM
utilized
a
positioning
strategy
to
control
Fund-level
exposures
and
risks
through
the
purchase
of
a
stock
portfolio.
Using
the
output
from
a
quantitative
model,
the
strategy
seeks
to
position
the
portfolio
to
meet
RIM’s
overall
preferred
positioning
with
respect
to
Fund
exposures
along
factor
and
industry
dimensions.
The
Fund’s
active
positioning
strategy
provided
exposure
to
RIM’s
strategic
equity
beliefs
associated
with
value,
quality,
and
low
volatility
factors.
During
the
fiscal
year,
the
strategy
underperformed
the
Russell
1000
®
Index.
A
tilt
toward
stocks
with
lower
valuation
and
lower
market
capitalization
detracted.
Sector
allocation
decisions
were
moderately
positive,
including
an
overweight
to
the
consumer
discretionary
sector
and
an
underweight
to
the
energy
sector.
During
the
period,
RIM
partially
equitized
the
Fund’s
cash
using
index
futures
contracts
to
provide
the
Fund
with
greater
market
exposure
and
this
strategy
performed
as
intended.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
There
were
no
changes
to
the
Fund’s
structure
or
money
manager
line-up
during
the
period.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2020
Styles
Brandywine
Global
Investment
Management,
LLC
Value
HS
Management
Partners,
LLC
Market
Oriented
Jackson
Square
Partner,
LLC
Growth
Jacobs
Levy
Equity
Management,
Inc.
Market
Oriented
*
Assumes
initial
investment
on
January
1,
2011
.
**
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
U.S.
Strategic
Equity
Fund
7
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,254.80
$
1,020
.91
Expenses
Paid
During
Period*
$
4
.76
$
4
.27
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.84%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments
—
December
31,
2020
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
$
Common
Stocks
-
96.7%
Consumer
Discretionary
-
16.5%
Advance
Auto
Parts,
Inc.
2,043
322
Amazon.com,
Inc.(Æ)
6,136
19,984
Amerco,
Inc.
627
285
AutoNation,
Inc.(Æ)
4,144
289
Best
Buy
Co.,
Inc.
5,999
599
BorgWarner,
Inc.
8,159
315
Bright
Horizons
Family
Solutions,
Inc.(Æ)
2,077
359
Brunswick
Corp.
2,105
160
Capri
Holdings,
Ltd.(Æ)
5,875
247
Carnival
Corp.
3,338
72
Carter's,
Inc.
1,611
152
Charter
Communications,
Inc.
Class
A(Æ)
14,210
9,400
Chipotle
Mexican
Grill,
Inc.
Class
A(Æ)
116
161
Choice
Hotels
International,
Inc.
3,980
425
Columbia
Sportswear
Co.
1,096
96
Comcast
Corp.
Class
A
32,723
1,715
Costco
Wholesale
Corp.
2,363
890
Darden
Restaurants,
Inc.
2,698
321
Dick's
Sporting
Goods,
Inc.
6,312
355
Discovery,
Inc.
Class
A(Æ)(Ñ)
3,691
111
Dollar
General
Corp.
3,100
652
DR
Horton,
Inc.
21,489
1,481
eBay,
Inc.
9,193
462
Expedia
Group,
Inc.
1,917
254
Extended
Stay
America,
Inc.
10,010
148
Floor
&
Decor
Holdings,
Inc.
Class
A(Æ)
2,227
207
Foot
Locker,
Inc.
7,438
301
Ford
Motor
Credit
Co.
LLC
55,821
491
Gap,
Inc.
(The)
18,045
364
Garmin,
Ltd.
3,337
399
General
Motors
Co.
106,294
4,426
Gentex
Corp.
21,830
741
Genuine
Parts
Co.
3,441
346
Goodyear
Tire
&
Rubber
Co.
(The)
16,183
177
Graham
Holdings
Co.
Class
B
356
190
Grand
Canyon
Education,
Inc.(Æ)
1,590
148
Hanesbrands,
Inc.
12,187
178
Home
Depot,
Inc.
(The)
5,502
1,461
Kohl's
Corp.
10,918
444
Lear
Corp.
1,218
194
Leggett
&
Platt,
Inc.
4,651
206
Lennar
Corp.
Class
A
7,013
535
Lennar
Corp.
Class
B
2,463
151
Liberty
SiriusXM
Group
Class
C(Æ)
6,835
297
LKQ
Corp.(Æ)
14,272
503
Lowe's
Cos.,
Inc.
1,797
288
Lululemon
Athletica,
Inc.(Æ)
1,582
551
Macy's,
Inc.
25,091
282
McDonald's
Corp.
2,773
595
Mohawk
Industries,
Inc.(Æ)
2,644
373
Netflix,
Inc.(Æ)
12,694
6,864
Nike,
Inc.
Class
B
62,011
8,772
Nordstrom,
Inc.(Ñ)
10,259
320
Norwegian
Cruise
Line
Holdings,
Ltd.(Æ)(Ñ)
7,320
186
NVR,
Inc.(Æ)
70
286
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Ollie's
Bargain
Outlet
Holdings,
Inc.(Æ)
2,419
198
Omnicom
Group,
Inc.
43,730
2,727
O'Reilly
Automotive,
Inc.(Æ)
525
238
Penske
Automotive
Group,
Inc.
3,280
195
Polaris,
Inc.
3,134
299
PulteGroup,
Inc.
49,376
2,129
PVH
Corp.
4,338
407
Ralph
Lauren
Corp.
Class
A
2,230
231
Ross
Stores,
Inc.
4,099
503
Royal
Caribbean
Cruises,
Ltd.(Ñ)
2,807
210
Sensata
Technologies
Holding
PLC(Æ)
5,004
264
Skechers
USA,
Inc.
Class
A(Æ)
6,643
239
Starbucks
Corp.
55,858
5,976
Tapestry,
Inc.
12,285
382
Target
Corp.
4,997
882
Thor
Industries,
Inc.(Ñ)
10,922
1,016
Tiffany
&
Co.
1,277
168
TJX
Cos.,
Inc.
(The)
5,401
369
Tractor
Supply
Co.
2,270
319
Ulta
Salon
Cosmetics
&
Fragrance,
Inc.(Æ)
6,244
1,793
Under
Armour,
Inc.
Class
A(Æ)
7,984
137
Urban
Outfitters,
Inc.(Æ)
7,043
180
VF
Corp.
2,803
239
ViacomCBS,
Inc.
Class
B
10,067
375
Walmart,
Inc.
8,705
1,255
Walt
Disney
Co.
(The)(Æ)
7,265
1,316
Whirlpool
Corp.
1,874
338
Williams-Sonoma,
Inc.
4,349
443
Yum
China
Holdings,
Inc.
3,171
181
92,540
Consumer
Staples
-
3.5%
Archer-Daniels-Midland
Co.
8,634
435
Casey's
General
Stores,
Inc.
582
104
Clorox
Co.
(The)
446
90
Coca-Cola
Co.
(The)
20,059
1,100
CVS
Health
Corp.
46,142
3,152
Estee
Lauder
Cos.,
Inc.
(The)
Class
A
1,424
379
General
Mills,
Inc.
2,979
175
Hormel
Foods
Corp.
1,723
80
Ingredion,
Inc.
26,994
2,124
JM
Smucker
Co.
(The)
3,096
358
Kroger
Co.
(The)
83,126
2,640
Molson
Coors
Beverage
Co.
Class
B
34,870
1,576
Mondelez
International,
Inc.
Class
A
8,443
494
Monster
Beverage
Corp.(Æ)
2,598
240
PepsiCo,
Inc.
7,645
1,134
Philip
Morris
International,
Inc.
5,193
430
Procter
&
Gamble
Co.
(The)
15,375
2,139
Sysco
Corp.
1,609
119
Tyson
Foods,
Inc.
Class
A
41,270
2,660
US
Foods
Holding
Corp.(Æ)
5,544
185
Walgreens
Boots
Alliance,
Inc.
7,886
314
19,928
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
Energy
-
1.2%
BP
PLC
-
ADR
77,991
1,600
Canadian
Natural
Resources,
Ltd.
73,114
1,759
Chevron
Corp.
17,554
1,482
ConocoPhillips
13,264
530
Exxon
Mobil
Corp.
6,152
254
Magna
International,
Inc.
Class
A
15,341
1,086
6,711
Financial
Services
-
18.0%
AerCap
Holdings
N.V.(Æ)
21,353
973
Aflac,
Inc.
9,823
437
Alliance
Data
Systems
Corp.
2,771
205
Allstate
Corp.
(The)
4,199
462
American
Express
Co.
1,079
130
American
Homes
4
Rent
Class
A(ö)
3,460
104
American
Tower
Corp.(ö)
2,084
468
Annaly
Capital
Management,
Inc.(ö)
209,846
1,773
Apple
Hospitality
REIT,
Inc.(ö)
19,915
257
AvalonBay
Communities,
Inc.(ö)
1,131
181
Banco
Santander
SA
-
ADR(Æ)(Ñ)
400,794
1,222
Bank
of
America
Corp.
121,376
3,679
Bank
of
New
York
Mellon
Corp.
(The)
5,310
225
Berkshire
Hathaway,
Inc.
Class
B(Æ)
20,632
4,784
BlackRock,
Inc.
Class
A
903
652
Boston
Properties,
Inc.(ö)
15,743
1,488
Broadridge
Financial
Solutions,
Inc.
2,086
320
Brookfield
Property
REIT,
Inc.
Class
A(Ñ)(ö)
12,292
184
Capital
One
Financial
Corp.
2,570
254
Cboe
Global
Markets,
Inc.
503
47
CBRE
Group,
Inc.
Class
A(Æ)
6,371
400
Charles
Schwab
Corp.
(The)
22,877
1,213
Chubb,
Ltd.
3,410
525
Citigroup,
Inc.
117,857
7,267
Citizens
Financial
Group,
Inc.
60,323
2,157
Comerica,
Inc.
35,034
1,957
Crown
Castle
International
Corp.(ö)
1,803
287
CubeSmart(ö)
3,992
134
Discover
Financial
Services
2,083
189
Equinix,
Inc.(Æ)(ö)
331
236
Essent
Group,
Ltd.
22,410
968
Essex
Property
Trust,
Inc.(ö)
452
107
Everest
Re
Group,
Ltd.
130
30
Fidelity
National
Information
Services,
Inc.
4,253
602
Fiserv,
Inc.(Æ)
2,540
289
FleetCor
Technologies,
Inc.(Æ)
1,063
290
Global
Payments,
Inc.
3,663
789
Goldman
Sachs
Group,
Inc.
(The)
378
100
Hartford
Financial
Services
Group,
Inc.
3,157
155
Host
Hotels
&
Resorts,
Inc.(ö)
9,213
135
Invitation
Homes,
Inc.(ö)
4,938
147
Jack
Henry
&
Associates,
Inc.
2,410
390
JPMorgan
Chase
&
Co.
41,701
5,299
KeyCorp
919
15
KKR
&
Co.,
Inc.
Class
A
164,736
6,670
Life
Storage,
Inc.(Æ)(ö)
727
87
M&T
Bank
Corp.
1,944
247
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
MasterCard,
Inc.
Class
A
30,959
11,051
Medical
Properties
Trust,
Inc.(ö)
3,345
73
Merck
&
Co.,
Inc.
14,451
1,182
MetLife,
Inc.
4,703
221
Morgan
Stanley
22,018
1,509
Northern
Trust
Corp.
3,311
308
PayPal
Holdings,
Inc.(Æ)
44,406
10,400
People's
United
Financial,
Inc.
3,680
48
PNC
Financial
Services
Group,
Inc.
(The)
2,876
429
Popular,
Inc.
22,053
1,242
Progressive
Corp.
(The)
1,337
132
Prudential
Financial,
Inc.
2,506
196
Public
Storage(ö)
963
222
Raymond
James
Financial,
Inc.
1,839
176
Regency
Centers
Corp.(ö)
1,726
79
Reinsurance
Group
of
America,
Inc.
Class
A
1,509
175
RenaissanceRe
Holdings,
Ltd.
5
1
Ryman
Hospitality
Properties,
Inc.(ö)
24,035
1,629
SLM
Corp.
94,562
1,172
State
Street
Corp.
2,147
156
Sun
Communities,
Inc.(ö)
628
95
Synchrony
Financial
8,472
294
Travelers
Cos.,
Inc.
(The)
3,142
441
Truist
Financial
Corp.
8,337
400
Two
Harbors
Investment
Corp.(ö)
291,435
1,856
US
Bancorp
8,817
411
VEREIT,
Inc.(ö)
2,273
86
Visa,
Inc.
Class
A
64,353
14,076
Wells
Fargo
&
Co.
130,331
3,933
Western
Union
Co.
(The)
11,682
256
WP
Carey,
Inc.(ö)
1,391
98
100,877
Health
Care
-
14.2%
Abbott
Laboratories
10,603
1,161
AbbVie,
Inc.
17,654
1,892
Abiomed,
Inc.(Æ)
1,856
602
Agilent
Technologies,
Inc.
6,993
829
Agios
Pharmaceuticals,
Inc.(Æ)
2,044
89
Alexion
Pharmaceuticals,
Inc.(Æ)
15,862
2,478
Align
Technology,
Inc.(Æ)
2,255
1,205
Alkermes
PLC(Æ)
14,653
292
Alnylam
Pharmaceuticals,
Inc.(Æ)
2,589
336
Amgen,
Inc.
2,239
515
Anthem,
Inc.(Æ)
1,207
388
AstraZeneca
PLC
-
ADR
16,079
804
Baxter
International,
Inc.
6,149
493
Becton
Dickinson
and
Co.
2,678
670
Biogen,
Inc.(Æ)
2,834
694
BioMarin
Pharmaceutical,
Inc.(Æ)
1,022
90
Bluebird
Bio,
Inc.(Æ)
3,503
152
Boston
Scientific
Corp.(Æ)
10,245
368
Bristol-Myers
Squibb
Co.
28,866
1,791
Cantel
Medical
Corp.
3,882
306
Centene
Corp.(Æ)
7,579
455
Cerner
Corp.
6,807
534
Cigna
Corp.
2,621
546
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Cooper
Cos.,
Inc.
(The)
1,361
494
Dentsply
Sirona,
Inc.
3,268
171
DexCom,
Inc.(Æ)
948
350
Edwards
Lifesciences
Corp.(Æ)
94,044
8,579
Eli
Lilly
&
Co.
4,594
776
Envista
Holdings
Corp.(Æ)
18,972
640
Exact
Sciences
Corp.(Æ)
1,507
200
Exelixis,
Inc.(Æ)
15,276
307
Gilead
Sciences,
Inc.
7,226
421
GlaxoSmithKline
PLC
-
ADR
37,309
1,373
HCA
Healthcare,
Inc.
6,053
995
Henry
Schein,
Inc.(Æ)
2,208
148
Hill-Rom
Holdings,
Inc.
2,362
231
Hologic,
Inc.(Æ)
2,266
165
Humana,
Inc.
425
174
ICU
Medical,
Inc.(Æ)
1,174
252
IDEXX
Laboratories,
Inc.(Æ)
459
229
Illumina,
Inc.(Æ)
15,081
5,579
Incyte
Corp.(Æ)
5,060
440
Insulet
Corp.(Æ)
433
111
Integra
LifeSciences
Holdings
Corp.(Æ)
3,940
256
Intuitive
Surgical,
Inc.(Æ)
9,629
7,876
Jazz
Pharmaceuticals
PLC(Æ)
8,413
1,389
Johnson
&
Johnson
31,591
4,972
Laboratory
Corp.
of
America
Holdings(Æ)
2,367
482
Masimo
Corp.(Æ)
1,953
524
MEDNAX,
Inc.(Æ)
9,580
235
Medtronic
PLC
24,438
2,863
Moderna,
Inc.(Æ)
3,263
341
Neurocrine
Biosciences,
Inc.(Æ)
831
80
Penumbra,
Inc.(Æ)
1,072
188
Pfizer,
Inc.
71,473
2,631
Quest
Diagnostics,
Inc.
3,476
414
Regeneron
Pharmaceuticals,
Inc.(Æ)
844
408
ResMed,
Inc.
3,433
730
Sage
Therapeutics,
Inc.(Æ)
2,682
232
Seagen,
Inc.(Æ)
1,169
205
STERIS
PLC
2,814
533
Stryker
Corp.
3,089
757
Teleflex,
Inc.
758
312
Thermo
Fisher
Scientific,
Inc.
2,717
1,266
United
Therapeutics
Corp.(Æ)
2,788
423
UnitedHealth
Group,
Inc.
6,346
2,225
Universal
Health
Services,
Inc.
Class
B
3,427
471
Varian
Medical
Systems,
Inc.(Æ)
2,969
520
Veeva
Systems,
Inc.
Class
A(Æ)
18,993
5,171
Vertex
Pharmaceuticals,
Inc.(Æ)
2,854
675
Viatris,
Inc.
Class
W(Æ)
91,558
1,716
West
Pharmaceutical
Services,
Inc.
2,655
752
Zimmer
Biomet
Holdings,
Inc.
12,249
1,887
Zoetis,
Inc.
Class
A
4,914
813
79,672
Materials
and
Processing
-
3.4%
Air
Products
&
Chemicals,
Inc.
144
39
Alcoa
Corp.(Æ)
29,353
677
Ball
Corp.
56,941
5,305
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Carrier
Global
Corp.
5,632
212
Copart,
Inc.(Æ)
1,742
222
Crown
Holdings,
Inc.(Æ)
14,515
1,454
DowDuPont,
Inc.
35,134
2,498
Eastman
Chemical
Co.
12,273
1,231
Ecolab,
Inc.
87
19
Fastenal
Co.
4,175
204
Freeport-McMoRan,
Inc.
26,439
688
Huntsman
Corp.
87,675
2,204
Lennox
International,
Inc.
546
150
Linde
PLC(Æ)
1,593
420
LyondellBasell
Industries
NV
Class
A
2,417
221
Newmont
Corp.
38,905
2,330
Owens
Corning
4,178
317
Reliance
Steel
&
Aluminum
Co.
434
52
Steel
Dynamics,
Inc.
63
2
Trane
Technologies
PLC
4,386
637
18,882
Producer
Durables
-
6.2%
3M
Co.
2,193
383
Accenture
PLC
Class
A
4,196
1,096
AECOM(Æ)
6,434
320
Ametek,
Inc.
5,005
605
Aptiv
PLC
1,648
215
Automatic
Data
Processing,
Inc.
3,807
671
Boeing
Co.
(The)
1,463
313
Booz
Allen
Hamilton
Holding
Corp.
Class
A
3,149
275
Carlisle
Cos.,
Inc.
2,833
442
CH
Robinson
Worldwide,
Inc.(Ñ)
3,238
304
Chart
Industries,
Inc.(Æ)
12,583
1,483
Cintas
Corp.
1,104
390
CoStar
Group,
Inc.(Æ)
672
621
CSX
Corp.
3,078
279
Cummins,
Inc.
3,179
722
Danaher
Corp.
4,379
973
Deere
&
Co.
930
250
Delta
Air
Lines,
Inc.
8,188
329
Eaton
Corp.
PLC
8,954
1,076
Emerson
Electric
Co.
3,665
295
Expeditors
International
of
Washington,
Inc.
1,184
113
FedEx
Corp.
2,422
629
Flir
Systems,
Inc.
4,588
201
General
Dynamics
Corp.
1,440
214
HEICO
Corp.
1,206
160
Honeywell
International,
Inc.
5,092
1,083
Huntington
Ingalls
Industries,
Inc.
597
102
IDEX
Corp.
2,079
414
IHS
Markit,
Ltd.(Æ)
3,232
290
Illinois
Tool
Works,
Inc.
1,625
331
Johnson
Controls
International
PLC(Æ)
18,229
849
Kansas
City
Southern
1,960
400
Keysight
Technologies,
Inc.(Æ)
918
121
L3Harris
Technologies,
Inc.
2,996
566
Lockheed
Martin
Corp.
1,215
431
Middleby
Corp.(Æ)
1,748
225
Northrop
Grumman
Corp.
932
284
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
11
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Old
Dominion
Freight
Line,
Inc.
548
107
Otis
Worldwide
Corp.
2,816
190
PACCAR,
Inc.
8,356
721
Paychex,
Inc.
7,866
733
Quanta
Services,
Inc.
6,202
447
Raytheon
Co.(Æ)
14,929
1,068
Republic
Services,
Inc.
Class
A
3,229
311
Roper
Technologies,
Inc.
954
411
S&P
Global,
Inc.
188
62
Snap-on,
Inc.
1,486
254
Southwest
Airlines
Co.
7,581
353
Stanley
Black
&
Decker,
Inc.
719
128
Textron,
Inc.
29,797
1,441
Toro
Co.
(The)
2,847
270
TreeHouse
Foods,
Inc.(Æ)
36,064
1,533
Union
Pacific
Corp.
2,511
523
United
Airlines
Holdings,
Inc.(Æ)
2,219
96
United
Parcel
Service,
Inc.
Class
B
2,401
404
United
Rentals,
Inc.(Æ)
1,238
287
Verisk
Analytics,
Inc.
Class
A
2,323
482
Waste
Management,
Inc.
57,195
6,746
Waters
Corp.(Æ)
790
195
Westinghouse
Air
Brake
Technologies
Corp.
1,530
112
Xerox
Holdings
Corp.
13,408
311
XPO
Logistics,
Inc.(Æ)
1,342
160
34,800
Technology
-
30.6%
Activision
Blizzard,
Inc.
2,116
196
Adobe,
Inc.(Æ)
11,817
5,910
Airbnb,
Inc.
Class
A(Æ)
18,253
2,680
Akamai
Technologies,
Inc.(Æ)
1,356
142
Allegion
PLC
1,360
158
Alphabet,
Inc.
Class
A(Æ)
6,287
11,019
Alphabet,
Inc.
Class
C(Æ)
853
1,494
Amdocs,
Ltd.
7,218
512
Amphenol
Corp.
Class
A
6,041
790
Ansys,
Inc.(Æ)
640
233
Apple,
Inc.
102,483
13,597
Applied
Materials,
Inc.
6,816
588
Arista
Networks,
Inc.(Æ)
12,107
3,518
Arrow
Electronics,
Inc.(Æ)
4,616
449
Autodesk,
Inc.(Æ)
19,053
5,818
Black
Knight,
Inc.(Æ)
2,660
235
Booking
Holdings,
Inc.(Æ)
95
212
Broadcom,
Inc.
1,205
528
CACI
International,
Inc.
Class
A(Æ)
356
89
Cadence
Design
Systems,
Inc.(Æ)
3,050
416
CDW
Corp.
2,415
318
Cisco
Systems,
Inc.
27,779
1,243
Citrix
Systems,
Inc.
3,203
417
Cognizant
Technology
Solutions
Corp.
Class
A
16,822
1,379
Concentrix
Corp.(Æ)
2,413
238
Corning,
Inc.
7,541
271
Corteva,
Inc.
Class
W
50,265
1,946
Coupa
Software,
Inc.(Æ)
18,061
6,121
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Datadog,
Inc.
Class
A(Æ)
41,402
4,076
Dell
Technologies,
Inc.
Class
C(Æ)
7,292
534
Dolby
Laboratories,
Inc.
Class
A
4,325
420
DXC
Technology
Co.
3,665
94
Electronic
Arts,
Inc.
923
133
F5
Networks,
Inc.(Æ)
2,416
425
Facebook,
Inc.
Class
A(Æ)
17,923
4,896
Fortinet,
Inc.(Æ)
1,247
185
Genpact,
Ltd.
10,959
453
Grubhub,
Inc.(Æ)
2,448
182
Hewlett
Packard
Enterprise
Co.
Class
H
33,432
396
HP,
Inc.(Æ)
25,392
624
Intel
Corp.
31,958
1,592
Intuit,
Inc.
1,557
591
Jabil
Circuit,
Inc.
7,666
326
Juniper
Networks,
Inc.
18,684
421
Lam
Research
Corp.
1,088
514
Leidos
Holdings,
Inc.
3,168
333
Marvell
Technology
Group,
Ltd.
38,717
1,841
Match
Group,
Inc.(Æ)
56,233
8,502
Micron
Technology,
Inc.(Æ)
41,776
3,141
Microsoft
Corp.
120,880
26,886
Motorola
Solutions,
Inc.
1,828
311
NCR
Corp.(Æ)
9,340
351
NVIDIA
Corp.
3,016
1,575
ON
Semiconductor
Corp.(Æ)
10,724
351
Oracle
Corp.
9,291
601
Paycom
Software,
Inc.(Æ)
17,854
8,074
Pure
Storage,
Inc.
Class
A(Æ)
18,569
420
Salesforce.com,
Inc.(Æ)
4,323
962
ServiceNow,
Inc.(Æ)
17,087
9,405
Skyworks
Solutions,
Inc.
1,179
180
SYNNEX
Corp.
2,413
197
Synopsys,
Inc.(Æ)
3,910
1,014
Take-Two
Interactive
Software,
Inc.(Æ)
2,156
448
Teradyne,
Inc.
4,579
549
Texas
Instruments,
Inc.
5,899
968
Twilio,
Inc.
Class
A(Æ)
32,052
10,850
Tyler
Technologies,
Inc.(Æ)
267
117
Uber
Technologies,
Inc.(Æ)
243,509
12,419
VMware,
Inc.
Class
A(Æ)(Ñ)
1,967
276
Western
Digital
Corp.
4,003
222
Wix.com,
Ltd.(Æ)
19,168
4,791
Workday,
Inc.
Class
A(Æ)
542
130
Zynga,
Inc.
Class
A(Æ)
38,500
380
171,673
Utilities
-
3.1%
American
Electric
Power
Co.,
Inc.
1,296
108
AT&T,
Inc.
102,582
2,950
Avangrid,
Inc.
4,903
223
CenterPoint
Energy,
Inc.
10,109
219
Consolidated
Edison
Co.,
Inc.
4,123
298
Dominion
Energy,
Inc.
1,134
85
DTE
Energy
Co.
1,968
239
Duke
Energy
Corp.
6,335
580
Evergy,
Inc.
5,903
328
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Eversource
Energy(Æ)
3,433
297
Exelon
Corp.
11,311
478
FirstEnergy
Corp.
54,732
1,675
International
Business
Machines
Corp.
4,227
532
National
Fuel
Gas
Co.
2,504
103
NextEra
Energy,
Inc.
6,860
529
NiSource,
Inc.
45,941
1,054
PG&E
Corp.(Æ)
11,180
139
Pinnacle
West
Capital
Corp.
1,968
157
PPL
Corp.
64,820
1,828
Sempra
Energy
1,950
248
Southern
Co.
(The)
4,650
286
T-Mobile
US,
Inc.(Æ)
2,129
287
UGI
Corp.
23,372
817
Verizon
Communications,
Inc.
62,093
3,649
Vistra
Corp.
4,895
96
WEC
Energy
Group,
Inc.(Æ)
4,835
445
17,650
Total
Common
Stocks
(cost
$366,998)
542,733
Warrants
and
Rights
-
0.0%
Bristol-Myers
Squibb
Co.
(Æ)
2021 Rights
5,115
4
Total
Warrants
and
Rights
(cost
$11)
4
Short-Term
Investments
-
3.2%
U.S.
Cash
Management
Fund(@)
17,915,631
(∞)
17,912
Total
Short-Term
Investments
(cost
$17,912)
17,912
Other
Securities
-
0.5%
U.S.
Cash
Collateral
Fund(@)(×)
2,848,997
(∞)
2,849
Total
Other
Securities
(cost
$2,849)
2,849
Total
Investments
-
100.4%
(identified
cost
$387,770
)
563,498
Other
Assets
and
Liabilities,
Net
-
(0.4)%
(2,393)
Net
Assets
-
100.0%
561,105
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
13
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
S&P
500
E-Mini
Index
Futures
40
USD
7,498
03/21
130
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
130
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
$
92,540
$
—
$
—
$
—
$
92,540
16.5
Consumer
Staples
19,928
—
—
—
19,928
3.
5
Energy
6,711
—
—
—
6,711
1.2
Financial
Services
100,877
—
—
—
100,877
18.0
Health
Care
79,672
—
—
—
79,672
14.2
Materials
and
Processing
18,88
2
—
—
—
18,88
2
3.4
Producer
Durables
34,800
—
—
—
34,800
6.2
Technology
171,67
3
—
—
—
171,67
3
30.
6
Utilities
17,650
—
—
—
17,650
3.1
Warrants
and
Rights
4
—
—
—
4
—
*
Short-Term
Investments
—
—
—
17,912
17,912
3.2
Other
Securities
—
—
—
2,849
2,849
0.5
Total
Investments
542,737
—
—
20,761
563,498
100.4
Other
Assets
and
Liabilities,
Net
(0.4)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
130
—
—
—
130
—
*
Total
Other
Financial
Instruments
**
$
130
$
—
$
—
$
—
$
130
*
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
14
U.S.
Strategic
Equity
Fund
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
130
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
5,443
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(25)
*
Includes
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
15
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
2,729
$
—
$
2,729
Total
Financial
and
Derivative
Assets
2,729
—
2,729
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
2,729
$
—
$
2,729
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
$
594
$
—
$
594
$
—
Barclays
360
—
360
—
Citigroup
312
—
312
—
HSBC
193
—
193
—
Morgan
Stanley
1,159
—
1,159
—
Wells
Fargo
111
—
111
—
Total
$
2,729
$
—
$
2,729
$
—
*
Fair
value
of
securities
on
loan
as
reported
in
the
footnotes
to
the
Statement
of
Assets
and
Liabilities.
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
16
U.S.
Strategic
Equity
Fund
I
i
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
387,770
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
563,498
Receivables:
Dividends
and
interest
.......................................................................................................................................................
445
Dividends
from
affiliated
funds
..........................................................................................................................................
2
Fund
shares
sold
................................................................................................................................................................
39
From
broker(a)
...................................................................................................................................................................
359
Variation
margin
on
futures
contracts
.................................................................................................................................
130
Total
assets
.................................................................................................................................................
564,473
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
28
Accrued
fees
to
affiliates
....................................................................................................................................................
373
Other
accrued
expenses
.....................................................................................................................................................
118
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
2,849
Total
liabilities
.............................................................................................................................................
3,368
Net
Assets
............................................................................................................................................................
$
561,105
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
17
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
170,533
Shares
of
beneficial
interest
...........................................................................................................................................................
287
Additional
paid-in
capital
..............................................................................................................................................................
390,285
Net
Assets
............................................................................................................................................................
$
561,105
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
19.58
Net
assets
...............................................................................................................................................................................
$
561,105,318
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
28,657,392
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
2,729
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
20,761
(a)
Receivable
from
Broker
for
Futures
$
359
(#)
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.
18
U.S.
Strategic
Equity
Fund
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
6,780
Dividends
from
affiliated
funds
.........................................................................................................................................
115
Securities
lending
income
(net)
.........................................................................................................................................
38
Total
investment
income
...............................................................................................................................................................
6,933
Expenses
Advisory
fees
....................................................................................................................................................................
3,569
Administrative
fees
...........................................................................................................................................................
244
Custodian
fees
...................................................................................................................................................................
74
Transfer
agent
fees
............................................................................................................................................................
22
Professional
fees
...............................................................................................................................................................
105
Trustees’
fees
....................................................................................................................................................................
26
Printing
fees
......................................................................................................................................................................
63
Miscellaneous
...................................................................................................................................................................
19
Total
expenses
...............................................................................................................................................................................
4,122
Net
investment
income
(loss)
........................................................................................................................................................
2,811
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(9,659
)
Investments
in
affiliated
funds
..........................................................................................................................................
(10)
Futures
contracts
..............................................................................................................................................................
5,443
Foreign
currency-related
transactions
...............................................................................................................................
1
Net
realized
gain
(loss)
..................................................................................................................................................................
(4,22
5
)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
109,85
0
Investments
in
affiliated
funds
..........................................................................................................................................
1
Futures
contracts
..............................................................................................................................................................
(25)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
109,82
6
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
105,601
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
108,412
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
19
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
2,811
$
4,643
Net
realized
gain
(loss)
......................................................................................................................
(4,22
5
)
33,02
2
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
109,82
6
75,71
3
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
108,412
113,378
Distributions
To
shareholders
.................................................................................................................................
(6,692)
(30,796)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(6,692)
(30,796)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(53,977)
51,204
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
47,743
133,786
Net
Assets
Beginning
of
period
.................................................................................................................................
513,362
379,576
End
of
period
..........................................................................................................................................
$
561,105
$
513,362
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
383
$
5,956
4,553
$
72,578
Proceeds
from
reinvestment
of
distributions
430
6,692
1,958
30,796
Payments
for
shares
redeemed
(4,185)
(66,625)
(3,413)
(52,170)
Total
increase
(decrease)
(3,372)
$
(53,977)
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.
20
U.S.
Strategic
Equity
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2020
16.03
.09
3.67
3.76
(.07)
(.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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
21
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.21)
19.58
23.84
561,105
.84
.84
.58
44
(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
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
22
U.S.
Strategic
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2020,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
342,588
Administration
fees
23,465
Transfer
agent
fees
2,065
Trustee
fees
4,614
$
372,732
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
$
121,343
$
125,157
$
(10)
$
1
$
17,912
$
115
$
—
U.S.
Cash
Collateral
Fund
7,335
105,515
110,001
—
—
2,849
71
—
$
29,070
$
226,858
$
235,158
$
(10)
$
1
$
20,761
$
186
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
392,882,382
$
177,485,647
$
(6,870,355)
$
170,615,292
$
1,450,475
$
(1,556,196)
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
2,209,349
$
4,482,632
$
—
$
5,055,899
$
25,740,255
$
—
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
U.S.
Small
Cap
Equity
Fund
23
U.S.
Small
Cap
Equity
Fund
Total
Return
1
Year
12
.70%
5
Years
10
.84%§
10
Years
9
.37%§
Russell
2000
®
Index
**
Total
Return
1
Year
19
.96%
5
Years
13
.26%§
10
Years
11
.20%§
U.S.
Small
Cap
Equity
Linked
Benchmark
***
Total
Return
1
Year
19
.96%
5
Years
13
.26%§
10
Years
11
.40%§
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
24
U.S.
Small
Cap
Equity
Fund
The
U.S.
Small
Cap
Equity
Fund
(the
“Fund”)
employs
a
multi-
manager
approach
whereby
portions
of
the
Fund
are
allocated
to
different
money
manager
strategies.
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
advisor.
RIM
may
change
a
Fund’s
asset
allocation
at
any
time,
including
not
allocating
Fund
assets
to
one
or
more
money
manager
strategies.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2020,
the
Fund
had
eight
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
long
term
capital
growth.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
gained
12.70%.
This
is
compared
to
the
Fund’s
benchmark,
the
Russell
2000
®
Index,
which
gained
19.96%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Small
Blend
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
13.11%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
RIM
may
assign
a
money
manager
a
specific
style
or
capitalization
benchmark
other
than
the
Fund’s
index.
However,
the
Fund’s
primary
index
remains
the
benchmark
for
the
Fund
and
is
representative
of
the
aggregate
of
each
money
manager’s
benchmark
index.
How
did
market
conditions
affect
the
Fund’s
performance?
Investor
sentiment
was
volatile
during
the
fiscal
year
given
the
global
spread
of
the
coronavirus
and
the
uncertainty
around
its
progression,
the
extent
of
economic
damage
and
the
effectiveness
of
global
policy
response.
In
March
and
April,
governments
worldwide
implemented
strict
measures,
including
social
distancing,
business
closures,
travel
restrictions
and
quarantines.
These
necessary
health
measures
adversely
affected
the
global
economy
and
financial
markets.
To
offset
the
impact,
central
banks
and
governments
around
the
globe
stepped
in
to
provide
monetary
and
fiscal
stimulus.
During
the
second
half
of
2020,
the
U.S.
economy
saw
increased
activity
with
job
gains
and
consumption
markedly
accelerating.
Historic
fiscal
and
monetary
stimulus
supported
these
trends,
as
well
as
the
recovery
of
equity
markets.
Towards
the
end
of
the
year,
multiple
COVID-19
vaccines
were
found
to
be
highly
effective
and
approved
for
emergency
use
in
the
United
States
and
Europe.
This
allowed
markets
to
overlook
the
growing
number
of
COVID-19
cases
as
winter
months
and
holiday
gatherings
brought
many
people
together.
Over
the
year,
growth
stocks
outperformed
value
stocks
and
large
cap
stocks
outperformed
small
cap
stocks.
The
coronavirus
accelerated
trends
in
e-commerce,
cloud
computing,
online
advertising
and
remote
work.
The
accelerated
search
for
a
coronavirus
vaccine
and
treatment
also
provided
a
tailwind
for
companies
in
the
health
care
sector.
On
the
other
side,
airlines,
oil
&
gas
companies
and
banks
were
hit
particularly
hard
by
the
pandemic.
Information
technology
and
health
care
were
among
the
best
performing
sectors
while
energy
and
financials
sectors
lagged.
However,
as
a
result
of
positive
vaccine
news
and
the
prospects
of
a
gradual
return
to
‘normalcy’,
small
cap
and
value-oriented
stocks
that
are
most
closely
tied
to
economic
fundamentals
experienced
strong
returns
in
the
fourth
quarter
of
2020.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
Over
the
period,
the
Fund
maintained
exposure
to
small
and
micro
capitalization
stocks
trading
at
discounted
valuations
as
well
as
companies
with
higher
quality
characteristics.
This
positioning
was
in
recognition
of
perceived
valuation
opportunities
as
well
as
the
risk
of
elevated
levels
of
corporate
debt
and
unprofitability
among
U.S.
small
cap
companies.
Within
the
U.S.
small
cap
market,
a
preference
for
low
valuation
and
high
profitability
negatively
impacted
benchmark
relative
performance.
Sector
allocation
decisions
were
positive
during
the
year,
especially
underweights
to
the
real
estate
and
financials
sectors,
and
overweights
to
the
information
technology
and
consumer
staples
sectors.
Stock
selection
by
the
Fund’s
money
managers
was
the
primary
detractor
during
the
period,
including
underperforming
holdings
within
the
industrials,
consumer
staples,
and
health
care
sectors.
The
Fund
employs
discretionary
and
non-discretionary
money
managers.
The
Fund’s
discretionary
money
managers
select
the
individual
portfolio
securities
for
the
assets
assigned
to
them.
The
Fund’s
non-discretionary
money
managers
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
certain
of
the
Fund’s
money
managers,
Ranger
Investment
Management,
L.P.
was
the
best
performing
money
manager
for
the
fiscal
year
and
outperformed
their
50%
Russell
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
U.S.
Small
Cap
Equity
Fund
25
2000
®
Growth
Index
/
50%
Russell
2000
®
Microcap
Growth
Index
benchmark.
An
underweight
to
the
real
estate
sector
and
an
overweight
to
the
information
technology
sector
were
beneficial.
Additionally,
stock
selection
within
the
consumer
discretionary
and
information
technology
sectors
was
a
meaningful
driver
of
outperformance.
Boston
Partners
Global
Investors,
Inc.
faced
the
strongest
headwinds
over
the
fiscal
year
and
underperformed
their
50%
Russell
2000
®
Value
Index
/
50%
Russell
2000
®
Microcap
Value
Index
benchmark.
A
tilt
toward
lower
valuation
stocks
was
not
beneficial.
The
money
manager’s
sector
allocation
decisions
were
not
rewarded,
including
underweights
to
the
consumer
discretionary
and
health
care
sectors
and
overweights
to
the
energy
and
real
estate
sectors.
Additionally,
stock
selection
within
the
energy,
materials,
and
consumer
staples
sectors
held
back
returns.
During
the
period,
RIM
utilized
a
positioning
strategy
to
control
Fund-level
exposures
and
risks
through
the
purchase
of
a
stock
portfolio.
Using
the
output
from
a
quantitative
model,
the
strategy
seeks
to
position
the
portfolio
to
meet
RIM’s
overall
preferred
positioning
with
respect
to
Fund
exposures
along
factor
and
industry
dimensions.
The
Fund’s
active
positioning
strategy
provided
exposure
to
RIM’s
strategic
equity
beliefs
associated
with
value
and
quality
factors.
During
the
fiscal
year,
the
strategy
underperformed
the
Russell
2000
®
Index
as
the
tilt
toward
stocks
with
low
valuation
meaningfully
detracted.
Sector
allocation
decisions
were
moderately
beneficial,
including
an
underweight
to
the
energy
sector
and
an
overweight
to
the
consumer
discretionary
sector.
During
the
period,
RIM
partially
equitized
the
Fund’s
cash
using
index
futures
contracts
to
provide
the
Fund
with
greater
market
exposure
and
this
strategy
performed
as
intended.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
In
May
2020,
RIM
determined
to
allocate
Fund
assets
to
Penn
Capital
Management
Company,
Inc.’s
strategy.
Allocations
to
other
money
manager
strategies
were
adjusted
as
a
result.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2020
Styles
Ancora
Advisor,
LLC
Market
Oriented
Boston
Partners
Global
Investors,
Inc.
Value
Calamos
Advisors
LLC
Growth
Copeland
Capital
Management,
LLC
Market
Oriented
DePrince
,
Race
&
Zollo
,
Inc.
Value
Jacobs
Levy
Equity
Management,
Inc.
Market
Oriented
Penn
Capital
Management
Company,
Inc.
Market
Oriented
Ranger
Investment
Management,
L.P.
Growth
*
Assumes
initial
investment
on
January
1,
2011.
**
Russell
2000
®
Index
measures
the
performance
of
the
small-cap
segment
of
the
U.S.
equity
universe.
The
Russell
2000
®
Index
is
a
subset
of
the
Russell
3000
®
Index
representing
approximately
10%
of
the
total
market
capitalization
of
that
index.
It
includes
approximately
2000
of
the
smallest
securities
based
on
a
combination
of
their
market
cap
and
current
index
membership.
The
Russell
2000
®
Index
is
constructed
to
provide
a
comprehensive
and
unbiased
small-cap
opportunity
barometer
and
is
completely
reconstituted
annually
to
ensure
larger
stocks
do
not
distort
the
performance
and
characteristics
of
the
true
small-cap
opportunity
set.
***
The
U.S.
Small
Cap
Equity
Linked
Benchmark
provides
a
means
to
compare
the
Fund’s
average
annual
returns
to
a
secondary
benchmark
that
takes
into
account
historical
changes
in
the
Fund’s
primary
benchmark.
The
U.S.
Small
Cap
Equity
Linked
Benchmark
represents
the
returns
of
the
Russell
2500
TM
Index
through
April
30,
2012
and
the
returns
of
the
Russell
2000
®
Index
thereafter.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
26
U.S.
Small
Cap
Equity
Fund
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,375.50
$
1,018.85
Expenses
Paid
During
Period*
$
7.46
$
6.34
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.25%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
27
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
99.7%
Consumer
Discretionary
-
14.5%
1-800-Flowers.com,
Inc.
Class
A(Æ)
8,746
227
Adtalem
Global
Education,
Inc.(Æ)
3,515
119
AMC
Networks,
Inc.
Class
A(Æ)
3,680
132
Amerco
,
Inc.(Ð)
430
195
American
Axle
&
Manufacturing
Holdings,
Inc.(Æ)
63,599
530
American
Public
Education,
Inc.(Æ)
6,171
188
America's
Car-Mart,
Inc.(Æ)
10,579
1,162
Aspen
Group,
Inc.(Æ)
7,104
79
B.
Riley
Financial,
Inc.
31,329
1,386
Bally's
Corp.(Æ)
9,226
464
Bassett
Furniture
Industries,
Inc.
1,221
25
Beazer
Homes
USA,
Inc.(Æ)
2,878
44
Bed
Bath
&
Beyond,
Inc.(Ñ)
18,614
331
Big
Lots,
Inc.
3,369
145
BJ's
Restaurants,
Inc.
29,546
1,137
BJ's
Wholesale
Club
Holdings,
Inc.(Æ)
5,571
208
Bloomin
'
Brands,
Inc.
16,854
327
BMC
Stock
Holdings,
Inc.(Æ)
5,075
272
Boot
Barn
Holdings,
Inc.(Æ)
19,165
831
Brinker
International,
Inc.
4,025
228
Cable
One,
Inc.(Û)
184
410
Caesars
Entertainment,
Inc.(Æ)
2,478
184
Caleres
,
Inc.
65,266
1,021
Canada
Goose
Holdings,
Inc.(Æ)(Ñ)
4,357
130
Cardlytics,
Inc.(Æ)
1,934
276
Carrols
Restaurant
Group,
Inc.(Æ)
37,523
236
Cavco
Industries,
Inc.(Æ)
2,270
398
Celestica,
Inc.(Æ)
23,889
193
Central
Garden
&
Pet
Co.
Class
A(Æ)(Û)
2,520
92
Cheesecake
Factory,
Inc.
(The)
2,801
104
Churchill
Downs,
Inc.
959
187
Cinemark
Holdings,
Inc.(Ñ)
5,963
104
Cooper
Tire
&
Rubber
Co.
4,486
182
Cooper-Standard
Holdings,
Inc.(Æ)(Û)
5,930
206
Cracker
Barrel
Old
Country
Store,
Inc.
681
90
Dana
Holding
Corp.
29,118
568
Deckers
Outdoor
Corp.(Æ)
869
249
Del
Taco
Restaurants,
Inc.(Æ)
35,245
319
Delta
Apparel,
Inc.(Æ)
17,432
350
Denny's
Corp.(Æ)
13,532
199
Designer
Brands,
Inc.
Class
A
38,683
296
Dillard's,
Inc.
Class
A(Ñ)
2,541
160
Dine
Brands
Global,
Inc.(Ð)
919
53
Dorman
Products,
Inc.(Æ)
1,258
109
Drive
Shack,
Inc.(Æ)(Ñ)
24,406
58
El
Pollo
Loco
Holdings,
Inc.(Æ)
11,384
206
Entercom
Communications
Corp.
Class
A
91,658
226
EW
Scripps
Co.
(The)
Class
A
27,051
414
First
Cash
Financial
Services,
Inc.
1,207
85
GameStop
Corp.
Class
A(Æ)(Ñ)
12,657
238
GAN,
Ltd.(Æ)(Ñ)
18,706
379
Genesco,
Inc.(Æ)
15,359
462
G-III
Apparel
Group,
Ltd.(Æ)
6,884
163
Golden
Entertainment,
Inc.(Æ)
30,821
613
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Goodyear
Tire
&
Rubber
Co.
(The)
23,053
252
GoPro,
Inc.
Class
A(Æ)
14,979
124
Gray
Television,
Inc.(Æ)
20,878
374
Hamilton
Beach
Brands
Holding
Co.
Class
A
16,935
297
Haverty
Furniture
Cos.,
Inc.(Û)
1,604
44
HealthStream
,
Inc.(Æ)(Û)
2,911
64
Hibbett
Sports,
Inc.(Æ)
1,337
62
Hilton
Grand
Vacations,
Inc.(Æ)
3,905
122
Houghton
Mifflin
Harcourt
Co.(Æ)(Ð)
9,148
30
iHeartMedia
,
Inc.
Class
A(Æ)(Ñ)
13,815
179
International
Game
Technology
PLC
11,854
201
IntriCon
Corp.(Æ)(Ñ)
5,952
108
Jack
in
the
Box,
Inc.
3,798
352
KB
Home
3,448
116
Kontoor
Brands,
Inc.
15,122
613
Lakeland
Industries,
Inc.(Æ)
1,162
32
La-Z-Boy,
Inc.
Class
Z
3,844
153
LGI
Homes,
Inc.(Æ)
585
62
Liberty
TripAdvisor
Holdings,
Inc.
Class
A(Æ)
43,648
189
Lithia
Motors,
Inc.
Class
A
989
289
Lovesac
Co.
(The)(Æ)
4,162
179
Lumber
Liquidators
Holdings,
Inc.(Æ)
1,701
52
Macy's,
Inc.
18,040
203
Madison
Square
Garden
Entertainment
Corp.
(Æ)
5,913
621
Madison
Square
Garden
Sports
Corp.
Class
A(Æ)
2,228
410
Manchester
United
PLC
Class
A
5,468
92
Marchex
,
Inc.
Class
B(Æ)
4,000
8
MarineMax
,
Inc.(Æ)
1,812
63
Marriott
Vacations
Worldwide
Corp.
1,897
260
Meritage
Homes
Corp.(Æ)
1,952
162
Mohawk
Group
Holdings,
Inc.(Æ)
4,700
81
Motorcar
Parts
of
America,
Inc.(Æ)
6,361
125
Movado
Group,
Inc.
1,559
26
Murphy
USA,
Inc.
770
101
Nexstar
Media
Group,
Inc.
Class
A
3,263
356
nVent
Electric
PLC
5,417
126
Overstock.com,
Inc.(Æ)
796
38
Papa
John's
International,
Inc.
1,503
128
Penn
National
Gaming,
Inc.(Æ)
3,485
301
Perdoceo
Education
Corp.(Æ)(Ð)
4,628
58
PetIQ
,
Inc.(Æ)(Ñ)
17,568
675
Planet
Fitness,
Inc.
Class
A(Æ)
2,369
184
Potbelly
Corp.(Æ)
18,187
80
Quotient
Technology,
Inc.(Æ)
3,239
31
Qurate
Retail,
Inc.
Class
A
56,667
622
Rent-A-Center,
Inc.
Class
A
3,381
129
Restoration
Hardware(Æ)
341
153
REV
Group,
Inc.
2,977
26
Revolve
Group,
Inc.(Æ)
8,528
266
Sally
Beauty
Holdings,
Inc.(Æ)(Ñ)
7,755
101
Scholastic
Corp.
4,707
118
Scientific
Games
Corp.
Class
A(Æ)
9,129
379
SeaWorld
Entertainment,
Inc.(Æ)
4,881
154
Signet
Jewelers,
Ltd.
4,371
119
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
Sinclair
Broadcast
Group,
Inc.
Class
A(Ñ)
5,797
185
Skyline
Champion
Corp.(Æ)
12,501
387
SMART
Global
Holdings,
Inc.(Æ)
22,698
854
Sonic
Automotive,
Inc.
Class
A
3,122
120
Stamps.com,
Inc.(Æ)
742
146
Steven
Madden,
Ltd.
6,044
213
Stride,
Inc.(Æ)
9,602
204
Taylor
Morrison
Home
Corp.
Class
A(Æ)
6,425
165
Tenneco,
Inc.
Class
A(Æ)
5,127
54
Texas
Roadhouse,
Inc.
Class
A
7,400
578
The
Aaron's
Co.,
Inc.(Æ)
8,877
168
Tilly's,
Inc.
Class
A
21,855
178
Travelzoo
,
Inc.(Æ)(Û)
7,405
70
Tribune
Publishing
Co.(Æ)
1,209
17
TripAdvisor,
Inc.(Æ)
8,090
233
Universal
Electronics,
Inc.(Æ)
6,851
359
Universal
Technical
Institute,
Inc.(Æ)
2,347
15
Urban
Outfitters,
Inc.(Æ)
4,494
115
Vera
Bradley,
Inc.(Æ)
1,395
11
Vista
Outdoor,
Inc.(Æ)
5,889
140
Visteon
Corp.(Æ)
2,382
299
Wingstop
,
Inc.(Û)
2,344
311
Winnebago
Industries,
Inc.
1,823
109
Wolverine
World
Wide,
Inc.
35,265
1,102
WW
International,
Inc.(Æ)
3,056
75
Wyndham
Hotels
&
Resorts,
Inc.(Û)
17,309
1,029
Zumiez
,
Inc.(Æ)
3,057
112
34,329
Consumer
Staples
-
2.6%
Adecoagro
SA(Æ)
43,564
296
Albertsons
Co.,
Inc.
Class
A
3,304
58
Alico
,
Inc.
2,807
87
Andersons,
Inc.
(The)
1,520
37
Bunge,
Ltd.(Û)
6,887
452
Coca-Cola
Bottling
Co.
354
94
elf
Beauty,
Inc.(Æ)
44,091
1,110
Farmer
Brothers
Co.(Æ)
9,590
45
Fresh
Del
Monte
Produce,
Inc.
8,042
194
Freshpet
,
Inc.(Æ)
635
90
Grocery
Outlet
Holding
Corp.(Æ)
7,586
298
Helen
of
Troy,
Ltd.(Æ)
793
176
Herbalife
Nutrition,
Ltd.(Æ)(Û)
5,065
243
J&J
Snack
Foods
Corp.
529
82
Lancaster
Colony
Corp.
924
170
Lifevantage
Corp.(Æ)
2,047
19
Medifast
,
Inc.
893
175
National
Beverage
Corp.(Ñ)
978
83
National
Vision
Holdings,
Inc.(Æ)
2,413
109
Nomad
Foods,
Ltd.(Æ)
17,058
434
Performance
Food
Group
Co.(Æ)
11,973
570
Pilgrim's
Pride
Corp.(Æ)
5,949
117
Post
Holdings,
Inc.(Æ)
1,075
109
Primo
Water
Corp.
17,593
276
Quanex
Building
Products
Corp.
4,704
104
Sanderson
Farms,
Inc.(Ð)
1,163
154
Spectrum
Brands
Holdings,
Inc.
3,749
296
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
USANA
Health
Sciences,
Inc.(Æ)
2,004
155
WD-40
Co.
495
132
6,165
Energy
-
3.1%
Apache
Corp.(Ð)(Û)
26,709
379
Arch
Coal,
Inc.(Æ)(Û)
4,529
198
ChampionX
Corp.(Æ)
53,156
813
Cimarex
Energy
Co.
2,293
86
Continental
Resources,
Inc.(Ð)
5,192
85
Devon
Energy
Corp.(Û)
23,135
366
Diamondback
Energy,
Inc.
8,294
401
EQT
Corp.(Æ)
20,821
265
Exterran
Corp.(Æ)
1,328
6
Green
Brick
Partners,
Inc.(Æ)
47,718
1,095
Green
Plains,
Inc.
5,264
69
Helix
Energy
Solutions
Group,
Inc.(Æ)(Ð)
6,086
26
Magnolia
Oil
&
Gas
Corp.(Æ)(Ñ)
46,942
331
Matrix
Service
Co.(Æ)
43,163
476
Nabors
Industries,
Inc.(Ð)
520
30
National
Energy
Services
Reunited
Corp.(Æ)
31,268
310
Natural
Gas
Services
Group,
Inc.(Æ)
31,021
294
Newpark
Resources,
Inc.(Æ)(Ð)
8,188
16
NexTier
Oilfield
Solutions,
Inc.(Æ)
50,999
175
NOW,
Inc.(Æ)
22,410
161
Oil
States
International,
Inc.(Æ)
7,022
35
Par
Pacific
Holdings,
Inc.(Æ)
6,512
91
PDC
Energy,
Inc.(Æ)(Ð)
5,197
107
Peabody
Energy
Corp.(Æ)
12,289
30
ProPetro
Holding
Corp.(Æ)
3,053
23
Renewable
Energy
Group,
Inc.(Æ)
1,789
127
REX
American
Resources
Corp.(Æ)(Ð)
718
53
Select
Energy
Services,
Inc.
Class
A(Æ)
54,871
225
SunCoke
Energy,
Inc.
5,011
22
Sunnova
Energy
International,
Inc.(Æ)
1,595
72
Sunrun
,
Inc.(Æ)
2,161
150
Targa
Resources
Corp.
11,501
303
TPI
Composites,
Inc.(Æ)
4,383
231
World
Fuel
Services
Corp.(Ð)
5,452
170
7,221
Financial
Services
-
20.9%
1st
Source
Corp.
2,273
92
AerCap
Holdings
N.V.(Æ)
8,104
369
Agree
Realty
Corp.(ö)
1,342
89
Alliance
Data
Systems
Corp.
7,774
576
Ally
Financial,
Inc.(Ð)
1,393
50
Altabank
Corp.(Æ)
1,070
30
Amalgamated
Bank
Class
A
10,330
142
American
Campus
Communities,
Inc.(Ð)(ö)
7,223
309
American
Equity
Investment
Life
Holding
Co.
9,562
264
Ameris
Bancorp
14,929
568
Amerisafe
,
Inc.
1,593
91
Apple
Hospitality
REIT,
Inc.(ö)
9,666
125
Argo
Group
International
Holdings,
Ltd.(Ð)
2,594
113
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
Armada
Hoffler
Properties,
Inc.(ö)
2,222
25
ARMOUR
Residential
REIT,
Inc.(ö)
11,074
119
Assurant,
Inc.
157
21
Assured
Guaranty,
Ltd.
1,126
35
Atlantic
Capital
Bancshares,
Inc.(Æ)
18,042
287
Atlantic
Union
Bankshares
Corp.(Æ)
4,147
137
Axis
Capital
Holdings,
Ltd.
11,525
581
Axos
Financial,
Inc.(Æ)
4,312
162
Banc
of
California,
Inc.
47,234
695
Bancorp,
Inc.
(The)(Æ)(Ð)
4,011
55
BancorpSouth
Bank
4,824
132
BankUnited
,
Inc.
10,935
380
Banner
Corp.
2,200
102
Blackstone
Mortgage
Trust,
Inc.
Class
A(ö)
12,806
353
Blucora
,
Inc.(Æ)
20,823
332
Bridgewater
Bancshares,
Inc.(Æ)
664
8
Brighthouse
Financial,
Inc.(Æ)(Û)
8,862
321
Brightsphere
Investment
Group,
Inc.
5,409
104
Brixmor
Property
Group,
Inc.(ö)
23,343
386
Broadmark
Realty
Capital,
Inc.(ö)
21,337
218
Byline
Bancorp,
Inc.
15,893
246
Cadence
Bancorp
8,359
137
Camden
Property
Trust(ö)
3,345
334
Cannae
Holdings,
Inc.(Æ)
8,840
391
Capital
City
Bank
Group,
Inc.
15,597
383
Capstar
Financial
Holdings,
Inc.
33,298
491
Capstead
Mortgage
Corp.(ö)
18,785
109
Carter
Bankshares
,
Inc.
1,297
14
Cathay
General
Bancorp
4,027
130
CBTX,
Inc.
1,486
38
Century
Bancorp,
Inc.
Class
A
3,462
268
CIT
Group,
Inc.
3,377
121
Civista
Bancshares,
Inc.
14,855
260
Coastal
Financial
Corp.(Æ)
1,218
26
Collectors
Universe,
Inc.
2,573
194
Columbia
Banking
System,
Inc.
3,860
139
Community
Bank
System,
Inc.
1,604
100
Community
Bankers
Trust
Corp.
10,201
69
CoreCivic
,
Inc.(Æ)
14,222
93
CorEnergy
Infrastructure
Trust,
Inc.(ö)
847
6
CorePoint
Lodging,
Inc.(ö)
4,673
32
Cowen
Group,
Inc.
Class
A
17,770
462
CTO
Realty
Growth,
Inc.
6,066
256
Cushman
&
Wakefield
PLC(Æ)
5,127
76
Customers
Bancorp,
Inc.(Æ)
1,000
18
CVB
Financial
Corp.
4,428
86
CyrusOne
,
Inc.(ö)
3,514
257
Deluxe
Corp.
3,135
92
Donegal
Group,
Inc.
Class
A
93
1
Eagle
Bancorp,
Inc.
2,909
120
EastGroup
Properties,
Inc.(ö)
1,178
163
Ellington
Financial,
Inc.(ö)
7,637
113
Emerald
Holding,
Inc.
30,853
167
Encore
Capital
Group,
Inc.(Æ)(Ð)
659
26
Enova
International,
Inc.(Æ)
3,701
92
Enstar
Group,
Ltd.(Æ)(Ð)
587
120
Equity
Commonwealth(ö)
5,528
151
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Equity
LifeStyle
Properties,
Inc.
Class
A(Ð)
(ö)
2,500
158
Essent
Group,
Ltd.
10,174
440
Essential
Properties
Realty
Trust,
Inc.(ö)
7,546
160
Everi
Holdings,
Inc.(Æ)
44,498
615
EZCORP,
Inc.
Class
A(Æ)
4,672
22
Fathom
Holdings,
Inc.(Æ)
8,464
305
FB
Financial
Corp.
8,092
281
Federated
Hermes,
Inc.
Class
B
4,440
128
First
BanCorp
4,587
155
First
Financial
Bankshares
,
Inc.
3,746
136
First
Financial
Corp.
397
15
First
Foundation,
Inc.
35,789
716
First
Horizon
National
Corp.
12,459
159
First
Interstate
BancSystem
,
Inc.
Class
A
8,207
335
First
Midwest
Bancorp,
Inc.
5,754
92
Forestar
Group,
Inc.(Æ)
1,330
27
Franchise
Group,
Inc.(Æ)
17,008
518
Fulton
Financial
Corp.
7,734
98
Gaming
and
Leisure
Properties,
Inc.(ö)(Û)
29,877
1,267
Genworth
Financial,
Inc.
Class
A(Æ)
54,078
204
Getty
Realty
Corp.(ö)
8,040
221
Glacier
Bancorp,
Inc.
2,595
119
Great
Western
Bancorp,
Inc.
3,455
72
Green
Dot
Corp.
Class
A(Æ)(Û)
9,927
554
Guaranty
Bancshares,
Inc.(Û)
428
13
Hallmark
Financial
Services,
Inc.(Æ)
29,261
104
Hancock
Holding
Co.
4,324
147
Hanmi
Financial
Corp.
2,862
32
Hannon
Armstrong
Sustainable
Infrastructure
Capital,
Inc.(ö)
1,102
70
Hanover
Insurance
Group,
Inc.
(The)
2,538
297
HarborOne
Bancorp,
Inc.
17,720
192
HCI
Group,
Inc.
1,126
59
Healthcare
Realty
Trust,
Inc.(ö)
2,966
88
Heartland
Financial
USA,
Inc.
1,657
67
Heritage
Financial
Corp.
12,912
302
Heritage
Insurance
Holdings,
Inc.
372
4
Hilltop
Holdings,
Inc.
5,038
139
Home
Bancorp,
Inc.(Û)
260
7
Home
BancShares
,
Inc.
19,205
374
HomeStreet
,
Inc.
26,462
893
HomeTrust
Bancshares,
Inc.(Û)
698
13
Hope
Bancorp,
Inc.
8,861
97
Houlihan
Lokey
,
Inc.
Class
A
5,602
377
I3
Verticals,
Inc.
Class
A(Æ)(Ñ)
30,464
1,011
Independence
Realty
Trust,
Inc.(ö)
38,905
522
Independent
Bank
Corp.(Û)
24,298
449
Independent
Bank
Group,
Inc.
2,056
129
Industrial
Logistics
Properties
Trust(ö)
8,270
193
Invesco
Mortgage
Capital,
Inc.(Ñ)(ö)
39,167
132
Investors
Bancorp,
Inc.
10,393
110
iStar
,
Inc.(Ð)(ö)
3,800
56
James
River
Group
Holdings,
Ltd.(Ð)
4,871
239
JBG
Smith
Properties(ö)
906
28
JER
Investment
Trust,
Inc.(Æ)(Š)(Þ)
1,771
—
Kearny
Financial
Corp.
62,604
661
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
Kemper
Corp.
2,176
167
Kinsale
Capital
Group,
Inc.
243
49
KKR
Real
Estate
Finance
Trust,
Inc.(ö)
8,380
150
Ladder
Capital
Corp.
Class
A(ö)
13,162
129
LendingClub
Corp.(Æ)
9,715
103
LendingTree
,
Inc.(Æ)(Ñ)
973
266
Lexington
Realty
Trust(ö)
9,300
99
Live
Oak
Bancshares,
Inc.(Ð)
1,730
82
LPL
Financial
Holdings,
Inc.(Û)
3,982
415
LTC
Properties,
Inc.(ö)
3,167
123
Merchants
Bancorp
1,768
49
Mercury
General
Corp.(Ð)
1,644
86
Meridian
Bancorp,
Inc.
12,255
183
Metropolitan
Bank
Holding
Corp.(Æ)
177
6
MFA
Financial,
Inc.(ö)
80,810
314
MGIC
Investment
Corp.
13,962
175
Mr.
Cooper
Group,
Inc.(Æ)
4,275
133
National
Bank
Holdings
Corp.
Class
A
16,289
534
National
General
Holdings
Corp.
1,789
61
National
Health
Investors,
Inc.(ö)
1,385
96
NBT
Bancorp,
Inc.
2,833
91
New
Senior
Investment
Group,
Inc.(ö)
4,258
22
Newmark
Group,
Inc.
Class
A
40,762
297
NMI
Holdings,
Inc.
Class
A(Æ)
33,148
751
Northeast
Bank
14,979
337
Northrim
BanCorp
,
Inc.
372
13
Northwest
Bancshares,
Inc.
8,889
113
ODP
Corp.
(The)(Æ)
4,567
134
Office
Properties
Income
Trust(ö)
3,622
82
OFG
Bancorp
3,567
66
Old
National
Bancorp
4,866
81
Old
Second
Bancorp,
Inc.
32,997
333
Origin
Bancorp,
Inc.
688
19
PCSB
Financial
Corp.
45,723
729
Peapack
Gladstone
Financial
Corp.
424
10
PennyMac
Financial
Services,
Inc.
2,108
138
Peoples
Bancorp,
Inc.
15,782
428
Physicians
Realty
Trust(ö)
6,466
115
Piedmont
Office
Realty
Trust,
Inc.
Class
A(ö)
2,473
40
PJT
Partners,
Inc.
Class
A
256
19
Plymouth
Industrial
REIT,
Inc.(ö)
15,617
234
Popular,
Inc.(Û)
14,377
810
Postal
Realty
Trust,
Inc.
Class
A(ö)
32,799
554
Potlatch
Corp.(ö)
15,228
762
Premier
Financial
Corp.
20,823
479
ProAssurance
Corp.
4,350
77
PROG
Holdings,
Inc.
9,846
530
Provident
Financial
Services,
Inc.
5,500
99
PS
Business
Parks,
Inc.(ö)
731
97
QCR
Holdings,
Inc.
949
38
QTS
Realty
Trust,
Inc.
Class
A(Ñ)(ö)
1,581
98
Radian
Group,
Inc.
7,759
157
RE/MAX
Holdings,
Inc.
Class
A
3,080
112
Realogy
Holdings
Corp.(Æ)
25,033
328
Redfin
Corp.(Æ)
2,952
203
Reinsurance
Group
of
America,
Inc.
Class
A(Û)
3,710
430
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
RenaissanceRe
Holdings,
Ltd.(Û)
1,548
257
Renasant
Corp.
3,826
129
Retail
Value,
Inc.(ö)
735
11
RLI
Corp.
1,050
109
RLJ
Lodging
Trust(ö)
7,738
109
RMR
Group,
Inc.
(The)
Class
A
9,918
383
Ryman
Hospitality
Properties,
Inc.(ö)
3,486
236
Sabra
Health
Care
REIT,
Inc.(ö)
5,084
88
Safety
Insurance
Group,
Inc.
1,478
115
Santander
Consumer
USA
Holdings,
Inc.
1,880
41
Selective
Insurance
Group,
Inc.
1,830
123
ServisFirst
Bancshares,
Inc.
2,802
113
Shore
Bancshares,
Inc.
9,803
143
Silvercrest
Asset
Management
Group,
Inc.
Class
A
20,558
286
Simmons
First
National
Corp.
Class
A
4,873
105
SLM
Corp.
7,308
91
SmartFinancial
,
Inc.
1,395
25
South
State
Corp.
6,276
454
SP
Plus
Corp.(Æ)
27,246
786
Spirit
of
Texas
Bancshares,
Inc.
703
12
Spirit
Realty
Capital,
Inc.(Ð)(ö)
5,087
204
STAG
Industrial,
Inc.(ö)
4,348
136
Stewart
Information
Services
Corp.(Û)
9,423
456
Stifel
Financial
Corp.
4,510
228
StoneX
Group,
Inc.(Æ)(Ð)
700
41
Summit
Hotel
Properties,
Inc.(ö)
6,783
61
Sunstone
Hotel
Investors,
Inc.(ö)
8,428
95
Terreno
Realty
Corp.(ö)
1,950
114
Texas
Capital
Bancshares,
Inc.(Æ)
8,229
490
Tiptree
Financial,
Inc.
Class
A
37,691
189
TriCo
Bancshares
5,563
196
TriState
Capital
Holdings,
Inc.(Æ)
450
8
Triumph
Bancorp,
Inc.(Æ)
21,847
1,061
Trustmark
Corp.
3,378
92
UMB
Financial
Corp.
1,925
133
UMH
Properties,
Inc.(ö)
42,638
631
United
Bankshares
,
Inc.
4,497
146
United
Community
Banks,
Inc.
4,852
138
United
Fire
Group,
Inc.
1,388
35
United
Insurance
Holdings
Corp.(Ð)
4,000
23
Universal
Insurance
Holdings,
Inc.
5,797
88
Valley
National
Bancorp
13,286
130
Velocity
Financial,
Inc.(Æ)
14,427
90
Veritex
Holdings,
Inc.
13,055
335
Virtu
Financial,
Inc.
Class
A
3,518
89
Voya
Financial,
Inc.(Û)
6,239
367
Walker
&
Dunlop,
Inc.
1,697
156
Washington
Federal,
Inc.
2,319
60
Washington
Trust
Bancorp,
Inc.
9,171
411
Webster
Financial
Corp.
8,372
353
Western
Alliance
Bancorp
4,338
260
WSFS
Financial
Corp.
3,481
156
49,288
Health
Care
-
17.4%
Acadia
Healthcare
Co.,
Inc.(Æ)
3,479
175
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
AdaptHealth
Corp.(Æ)
8,857
333
Adverum
Biotechnologies,
Inc.(Æ)
7,648
83
Aeglea
BioTherapeutics
,
Inc.(Æ)
1,662
13
Aerie
Pharmaceuticals,
Inc.(Æ)(Ð)
4,318
58
Agenus,
Inc.(Æ)
25,798
82
Agios
Pharmaceuticals,
Inc.(Æ)(Ð)
4,696
203
Akebia
Therapeutics,
Inc.(Æ)
17,682
50
Aldeyra
Therapeutics,
Inc.(Æ)
2,791
19
Alector
,
Inc.(Æ)
5,236
79
Alkermes
PLC(Æ)(Ð)
14,074
281
Allakos
,
Inc.(Æ)
1,905
267
Allogene
Therapeutics,
Inc.(Æ)
5,135
130
Allscripts
Healthcare
Solutions,
Inc.(Æ)(Û)
21,769
314
Alphatec
Holdings,
Inc.(Æ)
27,890
405
Amicus
Therapeutics,
Inc.(Æ)
15,854
366
Amneal
Pharmaceuticals,
Inc.(Æ)(Ð)
8,168
37
Anavex
Life
Sciences
Corp.(Æ)(Ñ)
17,807
96
AngioDynamics
,
Inc.(Æ)
2,266
35
ANI
Pharmaceuticals,
Inc.(Æ)
18,830
547
Anika
Therapeutics,
Inc.(Æ)
15,751
713
Apellis
Pharmaceuticals,
Inc.(Æ)
3,752
215
Applied
Genetic
Technologies
Corp.(Æ)(Ð)
3,339
14
Ardelyx
,
Inc.(Æ)(Ð)
6,029
39
Arrowhead
Pharmaceuticals,
Inc.(Æ)
5,519
423
Assertio
Holdings,
Inc.(Æ)
14,166
5
Athenex
,
Inc.(Æ)(Ð)
5,870
65
Athersys
,
Inc.(Æ)(Ñ)
56,759
99
Avid
Bioservices
,
Inc.(Æ)
92,901
1,072
Beyondspring
,
Inc.(Æ)(Ð)
1,369
17
BioDelivery
Sciences
International,
Inc.(Æ)
44,324
186
Biohaven
Pharmaceutical
Holding
Co.,
Ltd.
(Æ)
2,594
222
BioLife
Solutions,
Inc.(Æ)
64,438
2,571
Biomerica
,
Inc.(Æ)
26,272
131
BioTelemetry
,
Inc.(Æ)
9,726
701
Bioxcel
Therapeutics,
Inc.(Æ)
1,536
71
Bluebird
Bio,
Inc.(Æ)(Ð)
5,293
229
Blueprint
Medicines
Corp.(Æ)
2,960
332
BridgeBio
Pharma,
Inc.(Æ)(Ñ)
3,807
271
Cara
Therapeutics,
Inc.(Æ)(Ð)
4,570
69
Cardiovascular
Systems,
Inc.(Æ)
2,060
90
Castlight
Health,
Inc.
Class
B(Æ)
11,835
15
Cellular
Biomedicine
Group,
Inc.(Æ)
6,234
115
ChemoCentryx
,
Inc.(Æ)
2,169
134
Chiasma,
Inc.(Æ)
3,099
13
Chimerix
,
Inc.(Æ)(Ð)
2,155
10
Coherus
Biosciences,
Inc.(Æ)(Ð)
4,582
80
Computer
Programs
&
Systems,
Inc.
2,837
76
Concert
Pharmaceuticals,
Inc.(Æ)(Ð)
2,977
38
CONMED
Corp.
3,639
408
Constellation
Pharmaceuticals,
Inc.(Æ)(Ñ)
5,310
153
CorVel
Corp.(Æ)
2,076
220
Crinetics
Pharmaceuticals,
Inc.(Æ)
1,000
14
Cross
Country
Healthcare,
Inc.(Æ)
1,954
17
CryoLife
,
Inc.(Æ)
9,478
224
Cue
Biopharma,
Inc.(Æ)
1,550
19
Cutera
,
Inc.(Æ)
1,635
39
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Cyclerion
Therapeutics,
Inc.(Æ)
2,605
8
Cytokinetics,
Inc.(Æ)
6,456
134
CytomX
Therapeutics,
Inc.(Æ)
6,772
44
Deciphera
Pharmaceuticals,
Inc.(Æ)
3,107
177
Denali
Therapeutics,
Inc.(Æ)
5,674
475
Dicerna
Pharmaceuticals,
Inc.(Æ)
5,215
115
Eagle
Pharmaceuticals,
Inc.(Æ)
3,872
180
Editas
Medicine,
Inc.(Æ)(Ñ)
4,620
324
Eidos
Therapeutics,
Inc.(Æ)
2,765
364
Eiger
BioPharmaceuticals
,
Inc.(Æ)(Ð)
1,762
22
Enanta
Pharmaceuticals,
Inc.(Æ)
4,431
187
Endo
International
PLC(Æ)(Ð)
13,453
97
Ensign
Group,
Inc.
(The)
8,048
587
Epizyme
,
Inc.(Æ)
5,975
65
Esperion
Therapeutics,
Inc.(Æ)(Ñ)
3,529
92
Fate
Therapeutics,
Inc.(Æ)
5,304
482
Fennec
Pharmaceuticals,
Inc.(Æ)
13,250
99
FibroGen
,
Inc.(Æ)
8,186
304
Flexion
Therapeutics,
Inc.(Æ)(Ð)
3,000
35
Forma
Therapeutics
Holdings,
Inc.(Æ)
1,971
69
Frequency
Therapeutics,
Inc.(Æ)(Ñ)
5,720
202
Fulgent
Genetics,
Inc.(Æ)(Ñ)
27,685
1,443
Global
Blood
Therapeutics,
Inc.(Æ)(Ð)
1,400
61
Gossamer
Bio,
Inc.(Æ)(Ð)
3,242
31
Halozyme
Therapeutics,
Inc.(Æ)
9,580
409
Hanger,
Inc.(Æ)(Ð)
1,103
24
Heron
Therapeutics,
Inc.(Æ)(Ñ)
15,853
336
Heska
Corp.(Æ)(Ñ)
9,635
1,403
Homology
Medicines,
Inc.(Æ)
2,876
32
iCAD
,
Inc.(Æ)
19,618
259
ICU
Medical,
Inc.(Æ)
1,305
280
IGM
Biosciences,
Inc.(Æ)(Ñ)
1,136
100
ImmunoGen
,
Inc.(Æ)(Ð)
6,903
45
Infinity
Pharmaceuticals,
Inc.(Æ)
1,209
3
InfuSystems
Holdings,
Inc.(Æ)
54,519
1,025
Insmed
,
Inc.(Æ)
5,400
180
Intellia
Therapeutics,
Inc.(Æ)
5,829
317
Intercept
Pharmaceuticals,
Inc.(Æ)
4,573
113
Intersect
ENT,
Inc.(Æ)
2,022
46
Invacare
Corp.
12,788
114
Invitae
Corp.(Æ)
1,435
60
Ionis
Pharmaceuticals,
Inc.(Æ)(Ð)
2,713
153
iRadimed
Corp.(Æ)
35,559
811
Jazz
Pharmaceuticals
PLC(Æ)(Ð)
1,098
181
Kura
Oncology,
Inc.(Æ)
2,610
85
Lannett
Co.,
Inc.(Æ)
3,970
26
Lantheus
Holdings,
Inc.(Æ)
22,181
299
LeMaitre
Vascular,
Inc.
21,244
860
LHC
Group,
Inc.(Æ)
1,264
270
LivaNova
PLC(Æ)
4,341
287
MacroGenics
,
Inc.(Æ)
5,407
124
Magellan
Health,
Inc.(Æ)
2,084
173
Medpace
Holdings,
Inc.(Æ)
2,752
383
MeiraGTx
Holdings
PLC(Æ)(Ð)
1,389
21
Merit
Medical
Systems,
Inc.(Æ)
2,014
112
Minerva
Neurosciences,
Inc.(Æ)
7,174
17
Mirati
Therapeutics,
Inc.(Æ)
1,846
405
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
Molina
Healthcare,
Inc.(Æ)(Û)
1,933
411
Morphic
Holding,
Inc.(Æ)
1,020
34
Mustang
Bio,
Inc.(Æ)
10,102
38
Myriad
Genetics,
Inc.(Æ)
8,792
174
NantKwest
,
Inc.(Æ)(Ñ)
13,364
178
Natera
,
Inc.(Æ)
4,249
423
Natus
Medical,
Inc.(Æ)
12,580
252
Nektar
Therapeutics(Æ)(Ð)
1,585
27
Neogen
Corp.(Æ)
4,151
329
NeoGenomics
,
Inc.(Æ)
6,543
352
NextGen
Healthcare,
Inc.(Æ)
5,399
98
NGM
Biopharmaceuticals,
Inc.(Æ)
1,529
46
Novavax
,
Inc.(Æ)(Ñ)
3,148
351
Novocure
,
Ltd.(Æ)(Ð)
1,558
270
Odonate
Therapeutics,
Inc.(Æ)
2,390
46
Option
Care
Health,
Inc.(Æ)
14,897
233
OraSure
Technologies,
Inc.(Æ)(Ð)
5,043
53
Orthofix
Medical,
Inc.(Æ)
2,400
103
Owens
&
Minor,
Inc.
1,795
49
Oxford
Immunotec
Global
PLC(Æ)
5,909
103
Paratek
Pharmaceuticals,
Inc.(Æ)(Ð)
2,000
13
Pennant
Group,
Inc.
(The)(Æ)
10,319
599
PRA
Health
Sciences,
Inc.(Æ)
1,182
148
Progenics
Pharmaceuticals,
Inc.(Æ)(Ð)(Š)
1,808
—
Prothena
Corp.
PLC(Æ)(Ð)
3,442
41
Providence
Service
Corp.
(The)(Æ)
4,770
661
PTC
Therapeutics,
Inc.(Æ)
4,499
275
R1
RCM,
Inc.(Æ)
4,971
119
Radius
Health,
Inc.(Æ)(Ð)
5,018
90
RadNet
,
Inc.(Æ)
34,127
668
Recro
Pharma,
Inc.(Æ)
30,910
88
REGENXBIO,
Inc.(Æ)(Ð)
1,902
86
Repligen
Corp.(Æ)
2,411
462
Revolution
Medicines,
Inc.(Æ)
3,465
137
Rubius
Therapeutics,
Inc.(Æ)(Ð)
1,582
12
Sage
Therapeutics,
Inc.(Æ)(Ð)
1,335
115
Sangamo
BioSciences
,
Inc.(Æ)
13,346
208
Selecta
Biosciences,
Inc.(Æ)
6,900
21
SI-BONE,
Inc.(Æ)
8,540
255
Sorrento
Therapeutics,
Inc.(Æ)(Ñ)
7,187
49
Spectrum
Pharmaceuticals,
Inc.(Æ)(Ð)
5,799
20
Stemline
Therapeutics,
Inc.(Æ)(Š)
14,060
5
Strongbridge
Biopharma
PLC(Æ)(Ð)
2,512
6
Supernus
Pharmaceuticals,
Inc.(Æ)
3,375
85
Surmodics
,
Inc.(Æ)
512
22
Sutro
Biopharma,
Inc.(Æ)(Ð)
1,381
30
Syndax
Pharmaceuticals,
Inc.(Æ)
7,585
169
Syneos
Health,
Inc.
Class
A(Æ)
2,593
177
Tabula
Rasa
HealthCare,
Inc.(Æ)(Ñ)
16,639
713
Tactile
Systems
Technology,
Inc.(Æ)
14,378
646
Tenet
Healthcare
Corp.(Æ)
6,305
252
TG
Therapeutics,
Inc.(Æ)
9,653
502
Theravance
Biopharma,
Inc.(Æ)(Ð)
4,470
79
Travere
Therapeutics,
Inc.(Æ)(Ð)
5,026
137
Tricida
,
Inc.(Æ)
1,413
10
Turning
Point
Therapeutics,
Inc.(Æ)
2,227
271
Twist
Bioscience
Corp.(Æ)
2,660
376
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Ultragenyx
Pharmaceutical,
Inc.(Æ)
2,625
363
United
Therapeutics
Corp.(Æ)(Û)
2,680
407
UNITY
Biotechnology,
Inc.(Æ)
3,070
16
Utah
Medical
Products,
Inc.
12,247
1,032
Vanda
Pharmaceuticals,
Inc.(Æ)
4,689
62
Varex
Imaging
Corp.(Æ)(Ð)
5,865
98
Vaxcyte
,
Inc.(Æ)
2,061
55
Veracyte
,
Inc.(Æ)
3,803
186
Vir
Biotechnology,
Inc.(Æ)(Ñ)
3,354
90
VYNE
Therapeutics,
Inc.(Æ)(Ð)
6,347
10
WaVe
Life
Sciences,
Ltd.(Æ)
1,781
14
Xencor
,
Inc.(Æ)
3,816
166
Zentalis
Pharmaceuticals,
Inc.(Æ)
2,369
123
Zogenix
,
Inc.(Æ)(Ð)
696
14
40,986
Materials
and
Processing
-
8.5%
Advanced
Drainage
Systems,
Inc.
1,035
87
AdvanSix
,
Inc.(Æ)
13,132
263
A-Mark
Precious
Metals,
Inc.
589
15
American
Woodmark
Corp.(Æ)
1,783
167
Apogee
Enterprises,
Inc.
3,547
112
Arconic
Corp.(Æ)
25,051
747
Ashland
Global
Holdings,
Inc.
3,888
308
Atkore
International
Group,
Inc.(Æ)
3,490
143
Axalta
Coating
Systems,
Ltd.(Æ)
3,792
108
Beacon
Roofing
Supply,
Inc.(Æ)
4,584
184
Boise
Cascade
Co.
3,600
172
BrightView
Holdings,
Inc.(Æ)
1,700
26
Broadwind
Energy,
Inc.(Æ)
16,407
130
Builders
FirstSource
,
Inc.(Æ)
5,703
233
Cabot
Corp.
3,282
147
Caesarstone
,
Ltd.
12,818
165
Carpenter
Technology
Corp.
5,527
161
Chemours
Co.
(The)
3,369
84
Clearwater
Paper
Corp.(Æ)
8,186
309
Commercial
Metals
Co.
4,644
95
Constellium
SE(Æ)
6,577
92
Culp,
Inc.
48,173
765
Eagle
Materials,
Inc.
6,924
702
Element
Solutions,
Inc.(Æ)
68,090
1,208
Forterra
,
Inc.(Æ)
20,338
350
Fortuna
Silver
Mines,
Inc.(Æ)
17,647
145
Haynes
International,
Inc.
8,796
210
Hecla
Mining
Co.
17,008
110
Huntsman
Corp.(Û)
15,389
387
Ingevity
Corp.(Æ)
9,391
711
Installed
Building
Products,
Inc.(Æ)
1,479
151
Insteel
Industries,
Inc.
30,875
688
Interface,
Inc.
Class
A
6,429
68
Koppers
Holdings,
Inc.(Æ)
31,757
990
Kraton
Corp.(Æ)(Ð)
2,140
59
Kronos
Worldwide,
Inc.
15,369
229
Landec
Corp.(Æ)
34,359
373
LB
Foster
Co.
Class
A(Æ)
372
6
LiqTech
International,
Inc.(Æ)(Ñ)
109,618
877
Louisiana-Pacific
Corp.
14,743
548
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
33
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Masonite
International
Corp.(Æ)(Û)
2,735
269
Matthews
International
Corp.
Class
A
7,154
210
Mosaic
Co.
(The)
15,328
353
MRC
Global,
Inc.(Æ)
9,428
63
Mueller
Industries,
Inc.
4,420
155
Neenah
Paper,
Inc.
4,085
226
Novagold
Resources,
Inc.(Æ)
4,401
43
O-I
Glass,
Inc.
Class
I
27,936
332
Olympic
Steel,
Inc.
767
10
Omega
Flex,
Inc.
5,231
764
Orion
Engineered
Carbons
SA
14,775
253
Patrick
Industries,
Inc.
1,627
111
Quaker
Chemical
Corp.(Ñ)
1,027
260
RBC
Bearings,
Inc.(Æ)
950
170
Resideo
Technologies,
Inc.(Æ)
3,020
64
Ryerson
Holding
Corp.(Æ)
1,591
22
Schnitzer
Steel
Industries,
Inc.
Class
A
4,931
157
Schweitzer-Mauduit
International,
Inc.
9,573
385
Simpson
Manufacturing
Co.,
Inc.
1,455
136
SiteOne
Landscape
Supply,
Inc.(Æ)
2,351
373
Stepan
Co.(Û)
2,140
255
Summit
Materials,
Inc.
Class
A(Æ)
11,208
225
TimkenSteel
Corp.(Æ)
4,745
22
Trinseo
SA
2,996
153
Tronox
Holdings
PLC
Class
A
46,397
678
UFP
Industries,
Inc.(Æ)
2,434
135
Unifi,
Inc.(Æ)(Ð)
2,646
47
Univar
Solutions,
Inc.
-
ADR(Æ)
4,518
86
Universal
Stainless
&
Alloy
Products,
Inc.(Æ)
25,145
188
Valvoline,
Inc.
45,664
1,057
Venator
Materials
PLC(Æ)
85,905
284
Veritiv
Corp.(Æ)
837
17
Verso
Corp.
Class
A
837
10
Worthington
Industries,
Inc.
1,994
102
WR
Grace
&
Co.
2,716
149
20,089
Producer
Durables
-
14.2%
ABM
Industries,
Inc.
3,913
149
ACCO
Brands
Corp.(Ð)
6,284
53
Adient
PLC(Æ)(Ð)
4,355
151
Aegion
Corp.
Class
A(Æ)
8,861
168
AGCO
Corp.(Û)
3,954
408
Air
Transport
Services
Group,
Inc.(Æ)
3,030
95
Alaska
Air
Group,
Inc.
1,606
84
Albany
International
Corp.
Class
A
2,080
153
Allegiant
Travel
Co.
Class
A
761
144
Allied
Motion
Technologies,
Inc.
19,987
1,021
Alta
Equipment
Group,
Inc.(Æ)(Ñ)
47,535
470
Applied
Industrial
Technologies,
Inc.
1,942
151
ArcBest
Corp.
4,382
187
Arcosa
,
Inc.
14,617
803
Ardmore
Shipping
Corp.
57,015
186
Argan
,
Inc.
7,672
341
ASGN,
Inc.(Æ)
2,492
208
Astronics
Corp.(Æ)
3,741
49
Atlas
Air
Worldwide
Holdings,
Inc.(Æ)
1,592
87
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Barnes
Group,
Inc.
1,439
73
Barrett
Business
Services,
Inc.
772
53
Brink's
Co.
(The)
11,925
859
CAI
International,
Inc.(Ð)
1,101
34
Chart
Industries,
Inc.(Æ)
1,888
222
Clean
Harbors,
Inc.(Æ)
2,308
176
Colfax
Corp.(Æ)
4,740
181
Commercial
Vehicle
Group,
Inc.(Æ)
2,453
21
Covenant
Transportation
Group,
Inc.
Class
A(Æ)
7,551
112
CRA
International,
Inc.
15,880
809
CyberOptics
Corp.(Æ)
815
18
Darling
Ingredients,
Inc.(Æ)
2,674
154
Diamond
S
Shipping,
Inc.(Æ)
967
6
Dorian
LPG,
Ltd.(Æ)
2,949
36
DXP
Enterprises,
Inc.(Æ)
1,094
24
Dycom
Industries,
Inc.(Æ)
1,290
97
Echo
Global
Logistics,
Inc.(Æ)
12,831
344
EMCOR
Group,
Inc.(Û)
4,488
410
Energy
Recovery,
Inc.(Æ)(Ð)
656
9
EnerSys
1,485
123
Euronav
NV
9,992
80
Evo
Payments,
Inc.
Class
A(Æ)
14,136
382
Exponent,
Inc.
1,792
161
Franklin
Electric
Co.,
Inc.
2,438
169
frontdoor
,
Inc.(Æ)(Û)
15,575
782
Gates
Industrial
Corp.
PLC(Æ)
12,134
155
Genasys
,
Inc.(Æ)
47,310
308
GP
Strategies
Corp.(Æ)
14,041
167
Great
Lakes
Dredge
&
Dock
Corp.(Æ)
12,887
170
Greenbrier
Cos.,
Inc.
3,590
131
Harsco
Corp.(Æ)
25,018
450
Heidrick
&
Struggles
International,
Inc.
11,999
353
Herman
Miller,
Inc.
3,560
120
Hertz
Global
Holdings,
Inc.
Class
W(Æ)
4,193
278
HNI
Corp.
4,751
164
Howmet
Aerospace,
Inc.
1,234
35
Hub
Group,
Inc.
Class
A(Æ)
2,580
147
Hyster
-Yale
Materials
Handling,
Inc.
600
36
ICF
International,
Inc.
3,701
275
Insperity
,
Inc.(Û)
3,298
269
International
Seaways,
Inc.
7,838
128
JetBlue
Airways
Corp.(Æ)
28,106
409
John
Bean
Technologies
Corp.
823
94
KBR,
Inc.
16,579
513
Kennametal,
Inc.
5,785
210
Kforce
,
Inc.
1,330
56
Kimball
International,
Inc.
Class
B
19,055
228
Knight-Swift
Transportation
Holdings,
Inc.
(Æ)
4,059
170
Knoll,
Inc.
10,202
150
Korn
Ferry
7,441
324
Kratos
Defense
&
Security
Solutions,
Inc.(Æ)
13,013
357
LCI
Industries
1,070
139
Liquidity
Services,
Inc.(Æ)
3,639
58
Lydall
,
Inc.(Æ)(Ð)
1,673
50
Magnite
,
Inc.(Æ)(Ñ)
93,512
2,872
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Manitowoc
Co.,
Inc.
(The)(Æ)
4,465
59
ManpowerGroup
,
Inc.(Û)
3,614
326
Marten
Transport,
Ltd.
11,614
200
MasTec
,
Inc.(Æ)
11,855
808
MAXIMUS,
Inc.
5,253
384
Mesa
Laboratories,
Inc.
4,666
1,338
Mitek
Systems,
Inc.(Æ)
1,023
18
Modine
Manufacturing
Co.(Æ)
4,674
59
MYR
Group,
Inc.(Æ)(Ð)
1,410
85
Orion
Group
Holdings,
Inc.(Æ)
29,108
144
OSI
Systems,
Inc.(Æ)
819
76
Park-Ohio
Holdings
Corp.
279
9
Paya
Holdings,
Inc.
Class
A(Æ)(Ñ)
9,766
133
Pitney
Bowes,
Inc.(Û)
18,897
116
Powell
Industries,
Inc.
1,184
35
Preformed
Line
Products
Co.
1,575
108
Primoris
Services
Corp.
7,765
214
Proto
Labs,
Inc.(Æ)
1,326
203
Radiant
Logistics,
Inc.(Æ)
54,134
314
Ranpak
Holdings
Corp.(Æ)
51,470
692
Repay
Holdings
Corp.(Æ)
8,297
226
Rexnord
Corp.
3,739
148
Ryder
System,
Inc.(Ð)
3,014
186
Saia,
Inc.(Æ)
2,209
399
SHYFT
Group,
Inc.
(The)(Æ)
14,512
412
SkyWest,
Inc.
3,335
134
Smith
&
Wesson
Brands,
Inc.(Æ)
9,291
165
Spirit
AeroSystems
,
Inc.
Class
A
2,270
89
Spirit
Airlines,
Inc.(Æ)
3,679
90
SPX
FLOW,
Inc.(Æ)
2,399
139
Standex
International
Corp.
1,566
121
StealthGas
,
Inc.(Æ)
61,469
144
Steelcase,
Inc.
Class
A
25,887
351
Team,
Inc.(Æ)
2,125
23
Teekay
Tankers,
Ltd.
Class
A(Æ)(Ñ)
30,444
335
Terex
Corp.
4,893
171
Tetra
Tech,
Inc.
2,012
233
Textainer
Group
Holdings,
Ltd.(Æ)(Ð)
3,006
58
Titan
International,
Inc.(Æ)(Ð)
1,587
8
TopBuild
Corp.(Æ)
2,343
431
TreeHouse
Foods,
Inc.(Æ)
18,423
783
TriNet
Group,
Inc.(Æ)(Û)
4,721
381
Triumph
Group,
Inc.
7,182
90
TrueBlue
,
Inc.(Æ)
9,965
186
Tutor
Perini
Corp.(Æ)
44,581
578
Ultralife
Corp.(Æ)
23,935
155
UniFirst
Corp.
621
131
Universal
Truckload
Services,
Inc.
22,855
471
US
Xpress
Enterprises,
Inc.
Class
A(Æ)
21,231
145
USA
Truck,
Inc.(Æ)
29,319
262
Vectrus
,
Inc.(Æ)
6,244
310
Vishay
Precision
Group,
Inc.(Æ)
5,125
161
Watts
Water
Technologies,
Inc.
Class
A
1,452
177
Werner
Enterprises,
Inc.
2,525
99
WESCO
International,
Inc.(Æ)(Ð)
4,236
333
Whole
Earth
Brands,
Inc.(Æ)
15,740
172
WNS
Holdings,
Ltd.
-
ADR(Æ)
6,290
453
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Xerox
Holdings
Corp.(Ð)
12,223
283
XPO
Logistics,
Inc.(Æ)
1,321
157
33,570
Technology
-
15.1%
A10
Networks,
Inc.(Æ)
7,953
78
ADTRAN,
Inc.
5,861
87
Agilysys
,
Inc.(Æ)
5,617
216
Alarm.com
Holdings,
Inc.(Æ)
1,264
131
Alpha
&
Omega
Semiconductor,
Ltd.(Æ)
14,277
338
Ambarella
,
Inc.(Æ)
2,706
248
American
Software,
Inc.
Class
A
50,053
859
Amkor
Technology,
Inc.
8,122
122
Amtech
Systems,
Inc.(Æ)
19,248
123
APi
Group
Corp.(Æ)(Þ)
54,581
991
Appfolio
,
Inc.
Class
A(Æ)
1,109
200
Appian
Corp.(Æ)(Ñ)
1,556
252
Arlo
Technologies,
Inc.(Æ)
11,845
92
Arrow
Electronics,
Inc.(Æ)(Û)
4,039
393
Asure
Software,
Inc.(Æ)
3,613
26
Avaya
Holdings
Corp.(Æ)(Ð)
9,577
183
Avid
Technology,
Inc.(Æ)(Ð)
3,907
62
Avnet,
Inc.
5,432
191
Axcelis
Technologies,
Inc.(Æ)
15,538
453
AXT,
Inc.(Æ)
15,343
147
Bandwidth,
Inc.
Class
A(Æ)
2,416
371
Bel
Fuse,
Inc.
Class
B
1,902
29
Benchmark
Electronics,
Inc.(Û)
22,112
597
Benefitfocus
,
Inc.(Æ)
2,566
37
Blackline,
Inc.(Æ)
921
123
Box,
Inc.
Class
A(Æ)(Û)
23,633
427
Brightcove
,
Inc.(Æ)
2,719
50
CalAmp
Corp.(Æ)
2,538
25
Casa
Systems,
Inc.(Æ)
3,851
24
Cerence
,
Inc.(Æ)
1,974
198
Ceridian
HCM
Holding,
Inc.(Æ)(Û)
3,613
385
Ciena
Corp.(Æ)(Ð)
7,824
413
Cirrus
Logic,
Inc.(Æ)(Û)
4,357
358
Cloudera,
Inc.(Æ)
6,431
89
CMC
Materials,
Inc.(Æ)
1,480
224
CommScope
Holding
Co.,
Inc.(Æ)
16,323
219
CommVault
Systems,
Inc.(Æ)(Ð)
3,414
189
comScore,
Inc.(Æ)(Ð)
8,652
22
Comtech
Telecommunications
Corp.
2,549
53
Concentrix
Corp.(Æ)
4,819
476
Conduent
,
Inc.(Æ)
9,767
47
Cornerstone
OnDemand
,
Inc.(Æ)
4,481
197
CTS
Corp.
2,711
93
Diebold
Nixdorf,
Inc.(Æ)
29,405
314
Digimarc
Corp.(Æ)
3,055
144
Digital
Turbine,
Inc.(Æ)
2,737
155
Domo,
Inc.
Class
B(Æ)
548
35
Donnelley
Financial
Solutions,
Inc.(Æ)
2,769
47
DSP
Group,
Inc.(Æ)
13,012
216
DZS,
Inc.(Æ)
1,768
27
eGain
Corp.(Æ)(Ð)
1,634
19
EMCORE
Corp.(Æ)(Û)
3,442
19
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
35
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Endava
PLC
-
ADR(Æ)
2,802
215
Extreme
Networks,
Inc.(Æ)
12,127
84
FireEye,
Inc.(Æ)(Û)
17,069
394
Glu
Mobile,
Inc.(Æ)
9,226
83
Groupon,
Inc.(Æ)
1,013
38
Harmonic,
Inc.(Æ)
9,223
68
HC2
Holdings,
Inc.(Æ)
2,047
7
Ichor
Holdings,
Ltd.(Æ)
3,837
116
Infinera
Corp.(Æ)(Ð)
16,274
171
Inovalon
Holdings,
Inc.
Class
A(Æ)
2,450
45
InterDigital
,
Inc.
1,727
105
Intevac,
Inc.(Æ)
279
2
iRobot
Corp.(Æ)(Ñ)
1,555
125
Jabil
Circuit,
Inc.(Û)
8,668
369
Juniper
Networks,
Inc.(Û)
5,525
124
Kimball
Electronics,
Inc.(Æ)
28,065
449
Kulicke
&
Soffa
Industries,
Inc.
21,769
692
Leaf
Group,
Ltd.(Æ)
16,387
76
Liberty
Latin
America,
Ltd.
Class
C(Æ)(Ð)
7,815
87
LiveRamp
Holdings,
Inc.(Æ)
1,526
112
Magnachip
Semiconductor
Corp.(Æ)
16,943
229
Maxar
Technologies,
Inc.
15,430
595
Mercury
Systems,
Inc.(Æ)
2,985
263
MicroStrategy
,
Inc.
Class
A(Æ)(Ð)
1,014
394
Mimecast,
Ltd.(Æ)
6,647
378
Model
N,
Inc.(Æ)
17,670
630
NAPCO
Security
Technologies,
Inc.(Æ)
43,129
1,131
NCR
Corp.(Æ)
4,425
166
NeoPhotonics
Corp.(Æ)
40,311
366
NetApp,
Inc.
734
49
NETGEAR,
Inc.(Æ)
7,760
315
NetScout
Systems,
Inc.(Æ)(Û)
10,038
275
New
Relic,
Inc.(Æ)(Ð)
2,986
195
nLight
,
Inc.(Æ)
19,482
636
Novanta
,
Inc.(Æ)
990
117
Nutanix
,
Inc.
Class
A(Æ)
6,840
218
OneSpan
,
Inc.(Æ)
48,094
995
Ooma
,
Inc.(Æ)
13,894
200
PDF
Solutions,
Inc.(Æ)
43,470
939
Pegasystems
,
Inc.
3,360
448
Perspecta
,
Inc.
13,418
323
Pixelworks
,
Inc.(Æ)
38,328
108
Plantronics,
Inc.(Ð)
3,558
96
PlayAGS
,
Inc.(Æ)
34,637
249
Pure
Storage,
Inc.
Class
A(Æ)(Û)
25,071
567
QAD,
Inc.
Class
A
17,606
1,112
Qualys
,
Inc.(Æ)(Ñ)
2,375
289
Quantum
Corp.(Æ)
1,829
11
RADCOM,
Ltd.(Æ)
20,978
230
Rambus,
Inc.(Æ)
10,738
187
Rapid7,
Inc.(Æ)
5,275
476
Ribbon
Communications,
Inc.(Æ)
11,574
76
Sabre
Corp.(Æ)
22,395
269
Sanmina
Corp.(Æ)
2,020
64
Sapiens
International
Corp.
NV(Æ)
8,792
269
ScanSource
,
Inc.(Æ)
3,889
103
Semtech
Corp.(Æ)
3,264
235
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Silicon
Laboratories,
Inc.(Æ)
1,950
248
Silicon
Motion
Technology
Corp.
-
ADR
3,812
184
Simulations
Plus,
Inc.
21,851
1,572
SiTime
Corp.(Æ)
1,549
173
Sonos
,
Inc.(Æ)
12,507
293
SPS
Commerce,
Inc.(Æ)
795
86
Super
Micro
Computer,
Inc.(Æ)
3,700
117
SVMK,
Inc.(Æ)
2,866
73
Synaptics
,
Inc.(Æ)(Û)
2,736
264
Synchronoss
Technologies,
Inc.(Æ)
4,000
19
Tenable
Holdings,
Inc.(Æ)
2,660
139
Teradata
Corp.(Æ)
6,160
138
TrueCar
,
Inc.(Æ)
20,932
88
Unisys
Corp.(Æ)
76,789
1,511
Upwork
,
Inc.(Æ)
10,801
373
Varonis
Systems,
Inc.(Æ)
1,662
272
Veeco
Instruments,
Inc.(Æ)
6,977
121
Verint
Systems,
Inc.(Æ)(Ð)
3,028
203
Vishay
Intertechnology
,
Inc.
3,527
73
Vocera
Communications,
Inc.(Æ)(Ð)
2,437
101
Workiva
,
Inc.(Æ)
8,294
760
Xperi
Holding
Corp.(Ð)
5,819
122
Yelp,
Inc.
Class
A(Æ)
10,751
351
Zix
Corp.(Æ)
124,193
1,072
35,732
Utilities
-
3.4%
Allete
,
Inc.
4,343
269
American
States
Water
Co.
1,064
85
ATN
International,
Inc.(Æ)
1,615
67
Avista
Corp.
6,893
277
Black
Hills
Corp.
2,916
179
Boingo
Wireless,
Inc.(Æ)
16,796
214
Bonanza
Creek
Energy,
Inc.(Æ)
1,659
32
Brigham
Minerals,
Inc.
Class
A
50,170
551
Brookfield
Renewable
Corp.
Class
A
6,664
388
Cogent
Communications
Holdings,
Inc.
4,503
269
Earthstone
Energy,
Inc.
Class
A(Æ)
86,373
460
Gogo
,
Inc.(Æ)(Ñ)
22,336
215
Iridium
Communications,
Inc.(Æ)
3,094
122
Kosmos
Energy,
Ltd.(Æ)
31,182
73
MDU
Resources
Group,
Inc.
61,124
1,610
New
Fortress
Energy
LLC
5,893
316
New
Jersey
Resources
Corp.
20,478
728
Northern
Oil
and
Gas,
Inc.(Æ)(Ñ)
12,912
113
NorthWestern
Corp.
2,014
117
NRG
Energy,
Inc.(Ð)
1,836
69
ONE
Gas,
Inc.
2,163
166
Plains
GP
Holdings,
LP
Class
A(Æ)
6,748
57
PNM
Resources,
Inc.
3,288
160
Portland
General
Electric
Co.(Û)
8,270
354
RGC
Resources,
Inc.
7,157
170
South
Jersey
Industries,
Inc.
31,217
673
Southwest
Gas
Holdings,
Inc.
1,704
104
Spire,
Inc.
2,213
142
Unitil
Corp.
1,712
76
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
36
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Vonage
Holdings
Corp.(Æ)
5,604
72
8,128
Total
Common
Stocks
(cost
$177,890)
235,508
Short-Term
Investments
-
4.5%
U.S.
Cash
Management
Fund(@)
10,682,728
(∞)
10,681
Total
Short-Term
Investments
(cost
$10,681)
10,681
Other
Securities
-
5.6%
U.S.
Cash
Collateral
Fund(@)(×)
13,171,412
(∞)
13,171
Total
Other
Securities
(cost
$13,171)
13,171
Total
Investments
-
109.8%
(identified
cost
$201,742)
259,360
Securities
Sold
Short
-
(4.5)%
Consumer
Discretionary
-
(0.8)%
Aspen
Group,
Inc.(Æ)
(1,081)
(12)
Caesars
Entertainment,
Inc.(Æ)
(2,345)
(174)
Callaway
Golf
Co.
(6,029)
(145)
CarParts.com,
Inc.(Æ)
(1,678)
(21)
Cinemark
Holdings,
Inc.
(3,549)
(62)
Dave
&
Buster's
Entertainment,
Inc.
(2,039)
(61)
Designer
Brands,
Inc.
Class
A
(6,137)
(47)
Dorman
Products,
Inc.(Æ)
(1,217)
(106)
Duluth
Holdings,
Inc.
Class
B(Æ)
(1,485)
(16)
Fortune
Brands
Home
&
Security,
Inc.
(78)
(7)
Fox
Factory
Holding
Corp.(Æ)
(1,434)
(151)
Gaia,
Inc.(Æ)
(1,963)
(19)
Gannett
Co.,
Inc.(Æ)
(19,461)
(65)
Gentex
Corp.
(4,890)
(166)
GrowGeneration
Corp.(Æ)
(861)
(35)
Guess?,
Inc.
(5,066)
(114)
Levi
Strauss
&
Co.
Class
A
(1,389)
(28)
Lindblad
Expeditions
Holdings,
Inc.(Æ)
(2,261)
(39)
Marine
Products
Corp.
(903)
(13)
Monro
Muffler
Brake,
Inc.
(1,856)
(99)
Nordstrom,
Inc.
(4,756)
(148)
Ollie's
Bargain
Outlet
Holdings,
Inc.(Æ)
(316)
(26)
Party
City
Holdco,
Inc.(Æ)
(1,931)
(12)
PriceSmart
,
Inc.
(945)
(86)
SEACOR
Marine
Holdings,
Inc.(Æ)
(2,160)
(6)
Stitch
Fix,
Inc.
Class
A(Æ)
(2,125)
(125)
Transcat
,
Inc.(Æ)
(221)
(8)
XPEL,
Inc.(Æ)
(862)
(44)
(1,835)
Consumer
Staples
-
(0.1)%
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
National
Vision
Holdings,
Inc.(Æ)
(503)
(23)
Nu
Skin
Enterprises,
Inc.
Class
A
(1,495)
(81)
OptimizeRx
Corp.(Æ)
(1,822)
(57)
(161)
Energy
-
(0.2)%
Ameresco
,
Inc.
Class
A(Æ)
(1,184)
(62)
Antero
Resources
Corp.(Æ)
(8,668)
(47)
Archrock
,
Inc.(Æ)
(4,602)
(40)
ChampionX
Corp.(Æ)
(7,665)
(117)
FuelCell
Energy,
Inc.(Æ)
(3,043)
(34)
Liberty
Oilfield
Services,
Inc.
Class
A
(3,928)
(40)
Renewable
Energy
Group,
Inc.(Æ)
(152)
(11)
RPC,
Inc.(Æ)
(2,700)
(9)
Solaris
Oilfield
Infrastructure,
Inc.
Class
A
(4,687)
(38)
Southwestern
Energy
Co.(Æ)
(4,327)
(13)
(411)
Financial
Services
-
(0.9)%
Annaly
Capital
Management,
Inc.(ö)
(10,232)
(86)
Apollo
Commercial
Real
Estate
Finance,
Inc.(ö)
(15,385)
(172)
Arbor
Realty
Trust,
Inc.(ö)
(9,863)
(140)
Ares
Management
Corp.
Class
A
(997)
(47)
BRP
Group,
Inc.
Class
A(Æ)
(1,558)
(47)
Colony
Credit
Real
Estate,
Inc.(ö)
(4,405)
(33)
Dynex
Capital,
Inc.(ö)
(4,164)
(74)
Ellington
Residential
Mortgage(ö)
(2,121)
(28)
Emerald
Holding,
Inc.
(6,723)
(36)
Franchise
Group,
Inc.(Æ)
(754)
(23)
GoHealth
,
Inc.
Class
A(Æ)
(1,017)
(14)
Granite
Point
Mortgage
Trust,
Inc.(ö)
(16,402)
(164)
Hannon
Armstrong
Sustainable
Infrastructure
Capital,
Inc.(ö)
(3,030)
(192)
Ladder
Capital
Corp.
Class
A(ö)
(8,850)
(87)
MBIA,
Inc.(Æ)
(1,895)
(12)
Moelis
&
Co.
Class
A
(2,994)
(140)
New
Residential
Investment
Corp.(ö)
(7,032)
(70)
New
York
Mortgage
Trust,
Inc.(ö)
(49,257)
(182)
PennyMac
Mortgage
Investment
Trust(ö)
(8,285)
(146)
Ready
Capital
Corp.(Æ)
(9,069)
(113)
Redwood
Trust,
Inc.(ö)
(3,053)
(27)
TPG
RE
Finance
Trust,
Inc.(ö)
(8,209)
(87)
Two
Harbors
Investment
Corp.(ö)
(33,635)
(214)
Victory
Capital
Holdings,
Inc.
Class
A
(948)
(23)
Western
Asset
Mortgage
Capital
Corp.(ö)
(13,868)
(45)
WisdomTree
Investments,
Inc.
(8,082)
(43)
(2,245)
Health
Care
-
(0.9)%
Addus
HomeCare
Corp.(Æ)
(565)
(66)
ADMA
Biologics,
Inc.(Æ)
(13,566)
(26)
Arcus
Biosciences,
Inc.(Æ)
(261)
(7)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
37
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Arena
Pharmaceuticals,
Inc.(Æ)
(2,574)
(198)
Axonics
Modulation
Technologies,
Inc.(Æ)
(379)
(19)
Berkeley
Lights,
Inc.(Æ)
(135)
(12)
BioCryst
Pharmaceuticals,
Inc.(Æ)
(7,317)
(55)
CareDx
,
Inc.(Æ)
(379)
(27)
CASI
Pharmaceuticals,
Inc.(Æ)
(664)
(2)
Denali
Therapeutics,
Inc.(Æ)
(912)
(76)
Dynavax
Technologies
Corp.(Æ)
(1,540)
(7)
Exagen
,
Inc.(Æ)
(661)
(9)
Fate
Therapeutics,
Inc.(Æ)
(1,109)
(101)
Geron
Corp.(Æ)
(12,435)
(20)
HealthEquity
,
Inc.(Æ)
(2,662)
(186)
Immunic
,
Inc.(Æ)
(553)
(8)
Intra-Cellular
Therapies,
Inc.
Class
A(Æ)
(1,939)
(62)
Invitae
Corp.(Æ)
(1,521)
(64)
iRhythm
Technologies,
Inc.(Æ)
(658)
(156)
Kadmon
Holdings,
Inc.(Æ)
(6,548)
(27)
Kala
Pharmaceuticals,
Inc.(Æ)
(1,464)
(10)
Kodiak
Sciences,
Inc.(Æ)
(115)
(17)
MannKind
Corp.(Æ)
(5,908)
(18)
MediciNova
,
Inc.(Æ)
(3,604)
(19)
Mersana
Therapeutics,
Inc.(Æ)
(500)
(13)
Mirum
Pharmaceuticals,
Inc.(Æ)
(747)
(13)
Misonix
,
Inc.(Æ)
(635)
(8)
NeoGenomics
,
Inc.(Æ)
(3,651)
(197)
Ocular
Therapeutix
,
Inc.(Æ)
(1,564)
(32)
OncoCyte
Corp.(Æ)
(5,675)
(13)
OrthoPediatrics
Corp.(Æ)
(657)
(27)
Phathom
Pharmaceuticals,
Inc.(Æ)
(673)
(22)
Premier,
Inc.
Class
A
(2,750)
(97)
Quanterix
Corp.(Æ)
(1,136)
(53)
Repligen
Corp.(Æ)
(1,162)
(223)
Replimune
Group,
Inc.(Æ)
(796)
(30)
Rigel
Pharmaceuticals,
Inc.(Æ)
(8,560)
(30)
Sangamo
BioSciences
,
Inc.(Æ)
(521)
(8)
Seres
Therapeutics,
Inc.(Æ)
(2,063)
(50)
Sientra
,
Inc.(Æ)
(3,257)
(13)
Surgalign
Holdings,
Inc.(Æ)
(7,744)
(17)
Tabula
Rasa
HealthCare,
Inc.(Æ)
(1,347)
(58)
Veracyte
,
Inc.(Æ)
(2,247)
(110)
(2,206)
Materials
and
Processing
-
(0.3)%
AAON,
Inc.
(1,804)
(120)
Cleveland-Cliffs,
Inc.(Æ)
(7,765)
(113)
Compass
Minerals
International,
Inc.
(420)
(26)
Cornerstone
Building
Brands,
Inc.(Æ)
(4,217)
(39)
Livent
Corp.(Æ)
(2,276)
(43)
NN,
Inc.(Æ)
(4,518)
(30)
Quaker
Chemical
Corp.
(896)
(227)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Uranium
Energy
Corp.(Æ)
(15,640)
(27)
(625)
Producer
Durables
-
(0.4)%
Altra
Industrial
Motion
Corp.
(2,788)
(154)
Aqua
Metals,
Inc.(Æ)
(6,077)
(18)
Badger
Meter,
Inc.
(1,457)
(137)
Coda
Octopus
Group,
Inc.(Æ)
(250)
(2)
Concrete
Pumping
Holdings,
Inc.(Æ)
(2,561)
(10)
Fluor
Corp.
(5,087)
(81)
Genasys
,
Inc.(Æ)
(4,685)
(30)
Granite
Construction,
Inc.
(2,275)
(61)
Iteris
,
Inc.(Æ)
(3,522)
(20)
Mesa
Laboratories,
Inc.
(236)
(68)
NV5
Global,
Inc.(Æ)
(913)
(72)
Ranpak
Holdings
Corp.(Æ)
(3,300)
(44)
Repay
Holdings
Corp.(Æ)
(2,827)
(77)
Sharps
Compliance
Corp.(Æ)
(2,191)
(21)
SharpSpring
,
Inc.(Æ)
(781)
(13)
Toro
Co.
(The)
(1,459)
(138)
(946)
Technology
-
(0.9)%
Appfolio
,
Inc.
Class
A(Æ)
(908)
(163)
Black
Knight,
Inc.(Æ)
(776)
(69)
Brooks
Automation,
Inc.
(2,558)
(174)
Clearfield,
Inc.(Æ)
(1,284)
(32)
Cognex
Corp.
(2,508)
(201)
Covetrus
,
Inc.(Æ)
(2,981)
(86)
Cree,
Inc.(Æ)
(153)
(16)
Envestnet
,
Inc.(Æ)
(2,093)
(172)
Eventbrite,
Inc.
Class
A(Æ)
(2,681)
(49)
II-VI,
Inc.(Æ)
(3,543)
(269)
Immersion
Corp.(Æ)
(8,725)
(99)
IPG
Photonics
Corp.(Æ)
(149)
(33)
NAPCO
Security
Technologies,
Inc.(Æ)
(1,520)
(40)
Onto
Innovation,
Inc.(Æ)
(4,080)
(194)
PAR
Technology
Corp.(Æ)
(798)
(50)
Powerfleet
,
Inc.(Æ)
(2,316)
(17)
Q2
Holdings,
Inc.(Æ)
(1,839)
(233)
Sabre
Corp.(Æ)
(12,543)
(151)
Upland
Software,
Inc.(Æ)
(711)
(33)
(2,081)
Utilities
-
(0.0)%
Antero
Midstream
Corp.
(1,710)
(13)
Earthstone
Energy,
Inc.
Class
A(Æ)
(2,038)
(11)
Laredo
Petroleum,
Inc.(Æ)
(2,121)
(42)
New
Fortress
Energy
LLC
(841)
(45)
Penn
Virginia
Corp.(Æ)
(3,616)
(37)
(148)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
38
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Total
Securities
Sold
Short
(proceeds
$7,851)
(10,658)
Other
Assets
and
Liabilities,
Net
-
(5.3)%
(12,438)
Net
Assets
-
100.0%
236,264
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
39
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
0.4%
APi
Group
Corp.
04/08/20
54,581
10.05
548
991
JER
Investment
Trust,
Inc.
05/27/04
1,771
82.03
145
—
991
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
108
USD
10,664
03/21
241
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
241
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
$
34,329
$
—
$
—
$
—
$
34,329
14.5
Consumer
Staples
6,165
—
—
—
6,165
2.6
Energy
7,221
—
—
—
7,221
3.1
Financial
Services
49,288
—
—
—
49,288
20.9
Health
Care
40,981
—
5
—
40,986
17.4
Materials
and
Processing
20,089
—
—
—
20,089
8.5
Producer
Durables
33,570
—
—
—
33,570
14.2
Technology
35,732
—
—
—
35,732
15.1
Utilities
8,128
—
—
—
8,128
3.4
Short-Term
Investments
—
—
—
10,681
10,681
4.5
Other
Securities
—
—
—
13,171
13,171
5.6
Total
Investments
235,503
—
5
23,852
259,360
109.8
Securities
Sold
Short
**
(10,658)
—
—
—
(10,658)
(4.5)
Other
Assets
and
Liabilities,
Net
(5.3)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
241
—
—
—
241
0.1
Total
Other
Financial
Instruments
*
$
241
$
—
$
—
$
—
$
241
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
40
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
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
December
31,
2020,
were
less
than
1%
of
net
assets.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
41
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
241
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
5,239
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
144
*
Includes
cumulative
appreciation/depreciation
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
42
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
Offsetting
of
Financial
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
$
12,751
$
—
$
12,751
Total
Financial
and
Derivative
Assets
12,751
—
12,751
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
12,751
$
—
$
12,751
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
$
1,532
$
—
$
1,532
$
—
Barclays
720
—
720
—
Citigroup
907
—
907
—
Credit
Suisse
1,412
—
1,412
—
HSBC
1,966
—
1,966
—
Morgan
Stanley
669
—
669
—
National
Bank
of
Canada
4,019
—
4,019
—
Wells
Fargo
1,526
—
1,526
—
Total
$
12,751
$
—
$
12,751
$
—
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
43
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Short
Sales
Securities
sold
short,
at
fair
value
$
10,658
$
—
$
10,658
Total
Financial
and
Derivative
Liabilities
10,658
—
10,658
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
10,658
$
—
$
10,658
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
State
Street
$
10,658
$
—
$
10,658
$
—
Total
$
10,658
$
—
$
10,658
$
—
*
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.
44
U.S.
Small
Cap
Equity
Fund
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
201,74
2
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
259,36
0
Receivables:
Dividends
and
interest
.......................................................................................................................................................
137
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Investments
sold
................................................................................................................................................................
1,353
Fund
shares
sold
................................................................................................................................................................
1
From
broker(a)
...................................................................................................................................................................
398
Variation
margin
on
futures
contracts
.................................................................................................................................
241
Total
assets
.................................................................................................................................................
261,
491
Liabilities
Payables:
Due
to
custodian
................................................................................................................................................................
1
Investments
purchased
......................................................................................................................................................
934
Fund
shares
redeemed
.......................................................................................................................................................
115
Accrued
fees
to
affiliates
....................................................................................................................................................
189
Other
accrued
expenses
.....................................................................................................................................................
159
Securities
sold
short,
at
fair
value(‡)
..............................................................................................................................................
10,6
58
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
13,171
Total
liabilities
.............................................................................................................................................
25,2
27
Net
Assets
............................................................................................................................................................
$
236,264
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
45
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
45,23
3
Shares
of
beneficial
interest
...........................................................................................................................................................
150
Additional
paid-in
capital
..............................................................................................................................................................
190,88
1
Net
Assets
............................................................................................................................................................
$
236,264
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
15.75
Net
assets
...............................................................................................................................................................................
$
236,263,554
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
15,005,144
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
12,751
(‡)
Proceeds
on
securities
sold
short
$
7,85
1
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
23,852
(a)
Receivable
from
Broker
for
Futures
$
398
(#)
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.
46
U.S.
Small
Cap
Equity
Fund
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
2,512
Dividends
from
affiliated
funds
.........................................................................................................................................
47
Securities
lending
income
(net)
.........................................................................................................................................
106
Total
investment
income
...............................................................................................................................................................
2,665
Expenses
Advisory
fees
....................................................................................................................................................................
1,747
Administrative
fees
...........................................................................................................................................................
97
Custodian
fees
...................................................................................................................................................................
136
Transfer
agent
fees
............................................................................................................................................................
9
Professional
fees
...............................................................................................................................................................
84
Trustees’
fees
....................................................................................................................................................................
10
Printing
fees
......................................................................................................................................................................
32
Dividends
from
securities
sold
short
.................................................................................................................................
231
Interest
expense
paid
on
securities
sold
short
...................................................................................................................
65
Miscellaneous
...................................................................................................................................................................
15
Total
expenses
...............................................................................................................................................................................
2,426
Net
investment
income
(loss)
........................................................................................................................................................
239
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
(11,172)
Futures
contracts
..............................................................................................................................................................
5,239
Securities
sold
short
..........................................................................................................................................................
386
Net
realized
gain
(loss)
..................................................................................................................................................................
(5,547)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
33,73
0
Futures
contracts
..............................................................................................................................................................
144
Securities
sold
short
..........................................................................................................................................................
(2,3
17
)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
31,55
7
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
26,0
10
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
26,24
9
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
47
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
239
$
762
Net
realized
gain
(loss)
......................................................................................................................
(5,547)
13,677
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
31,55
7
31,510
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
26,24
9
45,949
Distributions
To
shareholders
.................................................................................................................................
(5,017)
(4,653)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(5,017)
(4,653)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(12,86
7
)
(17,887)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
8,365
23,409
Net
Assets
Beginning
of
period
.................................................................................................................................
227,899
204,490
End
of
period
..........................................................................................................................................
$
236,264
$
227,899
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
963
$
10,350
579
$
7,812
Proceeds
from
reinvestment
of
distributions
367
5,01
7
326
4,653
Payments
for
shares
redeemed
(2,267)
(28,23
4
)
(2,208)
(30,352)
Total
increase
(decrease)
(937)
$
(12,86
7
)
(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.
48
U.S.
Small
Cap
Equity
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
December
31,
2020
14.30
.02
1.75
1.77
(.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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
49
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.32)
15.75
12.70
236,264
1.25
1.25
.12
125
(.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
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
U.S,
Small
Cap
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2020,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
176,495
Administration
fees
9,805
Transfer
agent
fees
863
Trustee
fees
1,802
$
188,965
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
$
91,394
$
89,170
$
—
$
—
$
10,681
$
47
$
—
U.S.
Cash
Collateral
Fund
15,524
69,993
72,346
—
—
13,171
106
—
$
23,981
$
161,387
$
161,516
$
—
$
—
$
23,852
$
153
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
201,896,124
$
54,596,919
$
(7,791,122)
$
46,805,797
$
536,508
$
(2,109,113)
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
130,062
$
4,887,295
$
—
$
1,244,022
$
3,409,094
$
—
Russell
Investment
Funds
International
Developed
Markets
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
International
Developed
Markets
Fund
51
International
Developed
Markets
Fund
Total
Return
1
Year
5
.08%
5
Years
6
.50%§
10
Years
5
.10%§
MSCI
World
ex
USA
Index
(Net)
**
Total
Return
1
Year
7
.59%
5
Years
7
.64%§
10
Years
5
.19%§
International
Developed
Markets
Linked
Benchmark
***
Total
Return
1
Year
7
.59%
5
Years
7
.68%§
10
Years
5
.36%§
Russell
Investment
Funds
International
Developed
Markets
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
52
International
Developed
Markets
Fund
The
International
Developed
Markets
Fund
(the
“Fund”)
employs
a
multi-manager
approach
whereby
Russell
Investment
Management,
LLC
(“RIM”)
manages
a
portion
of
the
Fund’s
assets
based
upon
model
portfolios
provided
by
multiple
non-
discretionary
money
managers.
The
Fund’s
money
managers
have
non-discretionary
assignments
pursuant
to
which
they
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
RIM
also
manages
the
portion
of
the
Fund’s
assets
that
RIM
determines
not
to
manage
based
upon
model
portfolios
provided
by
the
Fund’s
money
managers.
RIM
may
change
the
allocation
of
the
Fund’s
assets
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2020,
the
Fund
had
three
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
long
term
capital
growth.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
gained
5.08%.
This
is
compared
to
the
Fund’s
benchmark,
the
MSCI
World
ex
USA
Index
(Net),
which
gained
7.59%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Foreign
Large
Blend
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
8.39%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
Non-U.S.
developed
markets
were
positive
over
the
period.
Asia-
Pacific
ex
Japan
recorded
the
strongest
gains,
while
Europe
and
the
United
Kingdom
underperformed
relative
to
other
non-U.S.
developed
markets.
In
terms
of
sector
performance
within
the
Fund’s
benchmark
over
the
fiscal
year,
information
technology
led,
with
materials
also
contributing
positively
to
performance.
Real
estate
and
energy
posted
the
weakest
gains
among
sectors
and
the
financial
sector
recorded
a
loss
over
the
period.
In
terms
of
factor
performance,
value
and
low
volatility
factors
were
the
worst
performing
factors
over
the
period,
while
growth
and
momentum
were
rewarded.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
The
Fund
underperformed
its
benchmark
for
the
one-year
period
ended
December
31,
2020.
A
tilt
to
value
was
a
headwind.
Sector
allocation
detracted,
mainly
due
to
overweights
to
energy
and
financials.
Overweights
to
Europe
ex
UK
and
emerging
markets
were
additive.
Stock
selection
detracted
over
the
period,
particularly
within
the
financial,
communication
services
and
consumer
discretionary
sectors.
The
Fund’s
money
managers
have
non-discretionary
assignments
pursuant
to
which
they
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
With
respect
to
this
portion
of
the
Fund,
RIM
manages
the
Fund’s
assets
based
upon
the
model
portfolios
provided
by
the
Fund’s
money
managers.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
certain
of
the
Fund’s
money
managers,
Wellington
Management
Company
LLC
(“Wellington”)
was
the
top
performer
during
the
period.
Wellington’s
tilt
to
smaller
quality
names
was
a
tailwind.
Overweights
to
information
technology
and
consumer
discretionary
were
additive.
Effective
stock
selection
in
communication
services
also
contributed
positively.
Pzena
Investment
Management,
LLC
was
the
weakest
performer
as
the
money
manager’s
value
strategy
continued
to
face
headwinds.
Overweights
to
energy
and
financials,
as
well
as
ineffective
selection
within
these
sectors,
detracted.
The
money
manager’s
overweight
to
the
United
Kingdom
also
hurt
performance.
RIM
manages
a
multi-factor
positioning
strategy
that
aims
to
increase
the
Fund’s
value
exposure
while
moderating
volatility
exposure
and
expressing
RIM’s
total
preferred
positioning
across
multiple
factors
and
sectors.
The
strategy
uses
the
output
from
a
quantitative
model
to
purchase
a
stock
portfolio
expressing
these
views.
The
positioning
strategy’s
benchmark-relative
performance
was
negative
for
the
period,
as
the
strategy’s
overweight
to
value
detracted.
However,
a
tilt
to
quality
names
offset
some
of
the
losses.
In
addition,
RIM
utilized
equity
futures
and
currency
forward
contracts
in
order
to
position
the
portfolio
to
meet
RIM’s
overall
preferred
positioning
with
respect
to
country
and
currency
exposures.
This
strategy
detracted
during
the
fiscal
year.
During
the
period,
RIM
used
index
futures
contracts
to
equitize
a
portion
of
the
Fund’s
cash
and
this
strategy
performed
as
intended.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
Russell
Investment
Funds
International
Developed
Markets
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
International
Developed
Markets
Fund
53
There
were
no
changes
to
the
Fund’s
structure
or
the
money
manager
line-up
during
the
period.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2020
Styles
Intermede
Investment
Partners
Limited
and
Intermede
Global
Partners,
Inc.
Growth
Pzena
Investment
Management,
LLC
Value
Wellington
Management
Company
LLP
Blend
*
Assumes
initial
investment
on
January
1,
2011.
**
The
MSCI
World
ex
USA
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
22
developed
market
country
indexes.
***
The
International
Developed
Markets
Linked
Benchmark
provides
a
means
to
compare
the
Fund’s
average
annual
returns
to
a
secondary
benchmark
that
takes
into
account
historical
changes
in
the
Fund’s
primary
benchmark.
The
International
Developed
Markets
Linked
Benchmark
represents
the
returns
of
the
Russell
Developed
ex
US
Large
Cap
Index
(net
of
tax
on
dividends
from
foreign
holdings)
from
January
1,
2011
through
December
31,
2017,
and
the
returns
of
the
MSCI
World
ex
USA
Index
(net
of
tax
on
dividends
from
foreign
holdings)
thereafter.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
International
Developed
Markets
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
54
International
Developed
Markets
Fund
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,247.00
$
1,019
.86
Expenses
Paid
During
Period*
$
5
.93
$
5
.33
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.05%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
55
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
92.6%
Argentina
-
0.0%
YPF
SA
-
ADR(Æ)
34,203
161
Australia
-
1.5%
AGL
Energy,
Ltd.
33,334
307
Alumina,
Ltd.
61,212
87
Australia
&
New
Zealand
Banking
Group,
Ltd.
-
ADR
14,428
253
BHP
Group
PLC
8,993
237
BHP
Group,
Ltd.
-
ADR
2,672
87
BlueScope
Steel,
Ltd.
12,890
174
Commonwealth
Bank
of
Australia
-
ADR
15,110
958
Crown
Resorts,
Ltd.
8,918
66
CSL,
Ltd.
1,955
427
Dexus
Property
Group(Æ)(ö)
13,721
100
Fortescue
Metals
Group,
Ltd.
26,460
478
GPT
Group
(The)(ö)
35,203
122
Insurance
Australia
Group,
Ltd.(Æ)
56,379
205
Medibank
Pvt
,
Ltd.
23,555
55
National
Australia
Bank,
Ltd.
-
ADR
14,149
247
Rio
Tinto
PLC
17,005
1,271
Rio
Tinto,
Ltd.
-
ADR
3,833
337
Sonic
Healthcare,
Ltd.
7,857
195
South32,
Ltd.
Class
B
95,224
182
Suncorp
Group,
Ltd.(Æ)
17,531
132
Westpac
Banking
Corp.
9,771
146
6,066
Austria
-
0.1%
Erste
Group
Bank
AG
14,921
451
OMV
AB
3,926
158
609
Belgium
-
0.4%
Ageas
SA
14,874
793
KBC
Groep
NV(Æ)
8,025
562
Solvay
SA
1,445
171
1,526
Brazil
-
0.6%
Ambev
SA
535,600
1,619
Pagseguro
Digital,
Ltd.
Class
A(Æ)
12,772
726
2,345
Canada
-
4.5%
Alimentation
Couche-Tard,
Inc.
Class
B
5,311
181
ARC
Resources,
Ltd.
28,974
137
Bank
of
Montreal
3,717
283
Bank
of
Nova
Scotia
(The)
4,464
241
Barrick
Gold
Corp.
36,813
839
BCE,
Inc.
7,410
317
CAE,
Inc.
93,361
2,586
Cameco
Corp.
Class
A
17,489
234
Canadian
Imperial
Bank
of
Commerce
2,599
222
Canadian
National
Railway
Co.
32,349
3,555
Canadian
Natural
Resources,
Ltd.
9,136
220
CGI
Group,
Inc.(Æ)
2,430
193
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
CI
Financial
Corp.
22,010
273
Constellation
Software,
Inc.
167
217
Dollarama
,
Inc.
16,150
658
Enbridge,
Inc.
7,869
252
Great-West
Lifeco
,
Inc.
13,079
312
iA
Financial
Corp.,
Inc.
4,032
175
Kinross
Gold
Corp.
70,742
519
Loblaw
Cos.,
Ltd.
3,911
193
Magna
International,
Inc.
Class
A
5,492
389
Manulife
Financial
Corp.
36,766
654
National
Bank
of
Canada
2,100
118
Open
Text
Corp.
3,490
159
Pembina
Pipeline
Corp.
12,401
293
Power
Corp.
of
Canada
6,330
145
Royal
Bank
of
Canada
-
GDR
10,049
826
Shaw
Communications,
Inc.
Class
B
7,916
139
Shopify,
Inc.
Class
A(Æ)
713
807
Sun
Life
Financial,
Inc.
19,859
883
Suncor
Energy,
Inc.
9,987
168
Topicus.com,
Inc.(Æ)(Š)
311
1
Toronto-Dominion
Bank
(The)
20,957
1,184
Tourmaline
Oil
Corp.
11,155
150
WSP
Global,
Inc.
1,496
142
17,665
Cayman
Islands
-
0.4%
Meituan-Dianping
Class
B(Æ)
31,200
1,194
Yatsen
Holding,
Ltd.
-
ADR(Æ)
18,851
320
1,514
China
-
2.9%
Alibaba
Group
Holding,
Ltd.
-
ADR(Æ)
20,616
4,797
China
Mobile,
Ltd.
99,000
566
China
Telecom
Corp.,
Ltd.
Class
H
1,816,000
502
China
Unicom
Hong
Kong,
Ltd.
988,000
564
Dongfeng
Motor
Group
Co.,
Ltd.
Class
H
936,000
1,092
Lenovo
Group,
Ltd.
1,314,257
1,244
Ping
An
Insurance
Group
Co.
of
China,
Ltd.
Class
H
66,966
823
Tencent
Holdings,
Ltd.
23,684
1,730
11,318
Colombia
-
0.0%
Millicom
International
Cellular
SA(Æ)
547
22
Denmark
-
2.3%
AP
Moller
-
Maersk
A/S
Class
B
1,847
4,118
Coloplast
A/S
Class
B
1,272
194
Danske
Bank
A/S(
Æ)
40,324
669
Drilling
Co.
of
1972
A/S
(The)(Æ)
1,163
37
DSV
Panalpina
A/S
4,922
824
Genmab
A/S(Æ)
823
333
H
Lundbeck
A/S
1,635
56
Novo
Nordisk
A/S
Class
B
31,333
2,191
Novozymes
A/S
Class
B
2,245
129
Pandora
A/S
2,520
282
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
56
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Vestas
Wind
Systems
A/S
1,025
243
9,076
Finland
-
1.3%
Elisa
OYJ
Class
A
4,856
265
Fortum
OYJ
7,738
186
Kone
OYJ
Class
B
6,334
514
Neste
OYJ
14,398
1,040
Nokia
OYJ(Æ)
284,975
1,086
Nokian
Renkaat
OYJ
2,135
75
Nordea
Bank
AB
32,159
263
Orion
OYJ
Class
B
1,887
86
Sampo
OYJ
Class
A
11,238
477
Stora
Enso
OYJ
Class
R
14,848
284
UPM-
Kymmene
OYJ
20,318
756
Wartsila
OYJ
Abp
Class
B
6,190
62
5,094
France
-
9.6%
Accor
SA(Æ)
17,496
637
Air
Liquide
SA
Class
A
1,244
204
Airbus
Group
SE(Æ)
8,406
923
Amundi
SA(Æ)(Þ)
18,068
1,475
Arkema
SA
1,726
197
Atos
SE(Æ)
3,906
357
AXA
SA
61,304
1,471
BNP
Paribas
SA(Æ)
29,134
1,537
Bouygues
SA
-
ADR
18,902
778
Capgemini
SE
3,935
610
Carrefour
SA
12,501
214
Cie
de
Saint-Gobain
SA
43,900
2,013
Cie
Generale
des
Etablissements
Michelin
SCA
Class
B
17,922
2,300
Credit
Agricole
SA(Æ)
10,441
132
Danone
SA
8,666
570
Dassault
Aviation
SA(Æ)
292
320
Dassault
Systemes
SA
680
138
Eiffage
SA(Æ)
1,933
187
Engie
SA(Æ)
78,819
1,207
EssilorLuxottica
SA
1,328
207
Hermes
International
304
327
L'Oreal
SA
4,348
1,652
LVMH
Moet
Hennessy
Louis
Vuitton
SE
-
ADR
4,271
2,669
Orange
SA
-
ADR
8,264
98
Peugeot
SA(Æ)
8,641
236
Publicis
Groupe
SA
-
ADR
35,088
1,749
Renault
SA(Æ)
17,615
771
Rexel
SA
Class
H(Æ)
241,001
3,800
Sanofi
-
ADR
11,880
1,148
Sartorius
Stedim
Biotech
5,404
1,926
Schneider
Electric
SE
18,715
2,707
SCOR
SE
-
ADR
26,861
868
Societe
Generale
SA(Æ)
35,019
730
Total
SA
53,293
2,299
Ubisoft
Entertainment
SA(Æ)
6,320
609
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Worldline
SA(Æ)(Þ)
8,621
834
37,900
Germany
-
5.3%
1&1
Drillisch
AG
2,043
51
adidas
AG(Æ)
10,015
3,645
Allianz
SE
2,175
532
BASF
SE
35,459
2,799
Bayer
AG
5,653
332
Bayerische
Motoren
Werke
Aktiengesellschaft
2,774
245
Brenntag
AG
3,012
233
Ceconomy
AG(Æ)
49,527
343
Continental
AG
1,212
180
Covestro
AG(Þ)
40,921
2,524
Daimler
AG
28,755
2,030
Deutsche
Boerse
AG
1,047
178
Deutsche
Post
AG
6,317
313
Deutsche
Telekom
AG
17,158
314
Evonik
Industries
AG
4,697
153
Fresenius
Medical
Care
AG
&
Co.
2,614
218
Fresenius
SE
&
Co.
KGaA
4,361
202
GEA
Group
AG
4,183
150
Hannover
Rueck
SE
2,428
386
HeidelbergCement
AG
2,408
180
Infineon
Technologies
AG
-
ADR
28,976
1,112
Metro
AG
15,401
173
Muenchener
Rueckversicherungs-
Gesellschaft
AG
2,947
873
Salzgitter
AG(Æ)
6,117
162
SAP
SE
-
ADR
3,378
444
Scout24
AG(Þ)
1,967
161
Siemens
AG
8,490
1,215
Siemens
Energy
AG(Æ)
6,040
222
Uniper
SE
2,518
87
United
Internet
AG
5,832
246
Zalando
SE(Æ)(Þ)
11,083
1,235
20,938
Hong
Kong
-
2.4%
AIA
Group,
Ltd.
256,808
3,164
Bank
of
East
Asia,
Ltd.
(The)
39,200
84
CK
Asset
Holdings,
Ltd.
134,549
692
CK
Hutchison
Holdings,
Ltd.
Class
B
19,313
135
CK
Infrastructure
Holdings,
Ltd.
17,000
91
CLP
Holdings,
Ltd.
28,500
264
Galaxy
Entertainment
Group,
Ltd.
101,000
786
Hang
Seng
Bank,
Ltd.
23,400
404
Henderson
Land
Development
Co.,
Ltd.
35,200
137
Hong
Kong
Exchanges
&
Clearing,
Ltd.
4,700
259
Jardine
Matheson
Holdings,
Ltd.
4,800
269
Jardine
Strategic
Holdings,
Ltd.
4,400
109
New
World
Development
Co.,
Ltd.
33,000
154
Power
Assets
Holdings,
Ltd.
55,000
298
Sino
Land
Co.,
Ltd.
87,698
114
Sun
Hung
Kai
Properties,
Ltd.
14,500
187
Techtronic
Industries
Co.,
Ltd.
164,271
2,352
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
57
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
WH
Group,
Ltd.(Þ)
123,000
103
9,602
India
-
1.3%
Canara
Bank(Æ)
119,258
211
Housing
Development
Finance
Corp.,
Ltd.
110,090
3,883
NTPC,
Ltd.
30,955
42
Oil
&
Natural
Gas
Corp.,
Ltd.
218,773
279
Reliance
Industries,
Ltd.
-
GDR(Þ)
9,265
507
Zee
Entertainment
Enterprises,
Ltd.
105,298
323
5,245
Indonesia
-
0.1%
Bank
Mandiri
Persero
Tbk
PT
560,300
253
Ireland
-
3.7%
Accenture
PLC
Class
A
10,665
2,787
AIB
Group
PLC
216,609
446
Allegion
PLC
22,117
2,574
Aon
PLC
Class
A
10,974
2,318
Bank
of
Ireland
Group
PLC(Æ)
133,060
541
CRH
PLC
10,234
433
DCC
PLC
2,847
202
Flutter
Entertainment
PLC(Æ)
6,194
1,276
James
Hardie
Industries
PLC(Æ)
14,349
424
Kerry
Group
PLC
Class
A
19,033
2,757
Kingspan
Group
PLC(Æ)
1,837
129
Ryanair
Holdings
PLC
-
ADR(Æ)
5,069
557
Smurfit
Kappa
Group
PLC
3,868
180
14,624
Israel
-
0.1%
Bank
Leumi
Le-Israel
BM
28,606
169
Israel
Discount
Bank,
Ltd.
Class
A
28,582
110
279
Italy
-
2.0%
Assicurazioni
Generali
SpA
58,646
1,021
Atlantia
SpA
(Æ)
10,727
193
BPER
Banca(Æ)
154,821
280
Davide
Campari-Milano
NV(Æ)
65,665
751
Enel
SpA
136,626
1,379
ENI
SpA
-
ADR
108,108
1,119
FinecoBank
Banca
Fineco
SpA
(Æ)
18,788
307
Intesa
Sanpaolo
SpA
(Æ)
101,603
237
Moncler
SpA
(Æ)
12,413
759
Saipem
SpA
113,516
303
Telecom
Italia
SpA
184,329
85
UniCredit
SpA
(Æ)
140,469
1,300
7,734
Japan
-
16.9%
Asahi
Glass
Co.,
Ltd.
4,100
143
Asahi
Kasei
Corp.
13,000
134
Astellas
Pharma,
Inc.
44,200
683
Benesse
Holdings,
Inc.
3,100
61
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Bridgestone
Corp.
17,800
585
Brother
Industries,
Ltd.
5,800
120
Canon,
Inc.
23,500
451
Chiba
Bank,
Ltd.
(The)
14,900
82
Chiyoda
Corp.(Æ)
31,000
85
Chubu
Electric
Power
Co.,
Inc.
9,400
113
Citizen
Watch
Co.,
Ltd.
61,500
176
Dai-ichi
Life
Holdings,
Inc.
55,050
836
Daikin
Industries,
Ltd.
800
178
Daito
Trust
Construction
Co.,
Ltd.
2,600
243
Daiwa
House
Industry
Co.,
Ltd.
4,400
131
DeNA
Co.,
Ltd.
23,600
421
Denso
Corp.
11,000
655
Eisai
Co.,
Ltd.
12,840
919
ENEOS
Holdings,
Inc.
28,200
101
Fuji
Media
Holdings,
Inc.
12,900
138
FUJIFILM
Holdings
Corp.
4,200
222
Fujitsu,
Ltd.
3,700
536
Fukuoka
Financial
Group,
Inc.
17,800
319
GMO
Payment
Gateway,
Inc.
3,400
454
Gree
,
Inc.
55,900
328
Hino
Motors,
Ltd.
87,800
752
Hitachi
Metals,
Ltd.
103,400
1,575
Hitachi,
Ltd.
4,900
193
Honda
Motor
Co.,
Ltd.
140,700
3,930
Hoya
Corp.
1,700
235
Iida
Group
Holdings
Co.,
Ltd.
45,400
918
Inpex
Corp.
116,800
631
Isuzu
Motors,
Ltd.
165,800
1,579
ITOCHU
Corp.
13,400
386
Japan
Airlines
Co.,
Ltd.
36,600
709
Japan
Exchange
Group,
Inc.
8,300
212
Japan
Tobacco,
Inc.
25,200
514
JGC
Holdings
Corp.
54,400
512
Kajima
Corp.
9,000
121
Kamigumi
Co.,
Ltd.
14,900
272
KDDI
Corp.
28,700
852
Keyence
Corp.
5,700
3,208
Kirin
Holdings
Co.,
Ltd.
12,800
302
Komatsu,
Ltd.
79,400
2,176
Kyocera
Corp.
5,600
344
M3,
Inc.
2,000
189
Marubeni
Corp.
30,500
203
Mitsubishi
Chemical
Holdings
Corp.
24,700
150
Mitsubishi
Corp.
8,100
200
Mitsubishi
Electric
Corp.
52,500
795
Mitsubishi
Estate
Co.,
Ltd.
43,200
698
Mitsubishi
Gas
Chemical
Co.,
Inc.
12,700
292
Mitsubishi
Heavy
Industries,
Ltd.
11,700
359
Mitsubishi
Motors
Corp.
90,500
191
Mitsubishi
UFJ
Financial
Group,
Inc.
304,100
1,347
Mitsubishi
UFJ
Lease
&
Finance
Co.,
Ltd.
31,600
152
Mitsui
&
Co.,
Ltd.
61,800
1,134
Mitsui
Chemicals,
Inc.
5,300
156
MS&AD
Insurance
Group
Holdings,
Inc.
18,000
549
Murata
Manufacturing
Co.,
Ltd.
11,100
1,000
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
58
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
NGK
Spark
Plug
Co.,
Ltd.
8,100
139
Nikon
Corp.
47,900
303
Nintendo
Co.,
Ltd.
710
453
Nippon
Telegraph
&
Telephone
Corp.
8,206
210
Nippon
Television
Holdings,
Inc.
26,800
292
Nissan
Motor
Co.,
Ltd.
123,200
670
Nitori
Holdings
Co.,
Ltd.
800
168
Nitto
Denko
Corp.
8,300
745
Nomura
Holdings,
Inc.
152,700
808
Nomura
Real
Estate
Holdings,
Inc.
4,900
109
Obayashi
Corp.
16,300
141
Oji
Holdings
Corp.
32,600
186
ORIX
Corp.
12,900
200
Otsuka
Holdings
Co.,
Ltd.
8,400
360
Panasonic
Corp.
240,000
2,773
Resona
Holdings,
Inc.
352,800
1,242
Sekisui
Chemical
Co.,
Ltd.
9,200
175
Sekisui
House,
Ltd.
14,000
285
Shimamura
Co.,
Ltd.
9,000
944
Shin-Etsu
Chemical
Co.,
Ltd.
24,235
4,242
SMC
Corp.
900
550
Softbank
Corp.
15,000
188
SoftBank
Group
Corp.
9,600
752
Sompo
Japan
Nipponkoa
Holdings,
Inc.
3,900
159
Sony
Corp.
10,510
1,057
Subaru
Corp.
23,600
473
Sumitomo
Chemical
Co.,
Ltd.
25,000
101
Sumitomo
Corp.
14,200
188
Sumitomo
Electric
Industries,
Ltd.
17,000
226
Sumitomo
Heavy
Industries,
Ltd.
10,300
255
Sumitomo
Mitsui
Banking
Corp.
71,400
2,209
Sumitomo
Mitsui
Trust
Holdings,
Inc.
27,300
847
Suzuki
Motor
Corp.
7,500
348
Sysmex
Corp.
1,400
168
T&D
Holdings,
Inc.
133,200
1,576
Taiheiyo
Cement
Corp.
3,300
83
Takeda
Pharmaceutical
Co.,
Ltd.
34,400
1,247
Teijin,
Ltd.
7,000
132
THK
Co.,
Ltd.
21,300
689
Tohoku
Electric
Power
Co.,
Inc.
12,600
104
Tokio
Marine
Holdings,
Inc.
10,000
518
Tokyo
Electron,
Ltd.
4,000
1,492
Toppan
Printing
Co.,
Ltd.
8,600
121
Toray
Industries,
Inc.
34,700
206
Tosoh
Corp.
7,800
122
Toyota
Industries
Corp.
2,000
159
Toyota
Motor
Corp.
9,600
736
Toyota
Tsusho
Corp.
5,600
227
Trend
Micro,
Inc.
34,900
2,009
Yamada
Denki
Co.,
Ltd.
34,700
184
Z
Holdings
Corp.
59,100
358
66,879
Luxembourg
-
1.2%
ArcelorMittal
SA(Æ)
79,645
1,828
Eurofins
Scientific
SE(Æ)
23,117
1,939
RTL
Group
SA(Æ)
10,228
497
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Spotify
Technology
SA(Æ)
1,488
468
Tenaris
SA
13,804
112
4,844
Macao
-
0.2%
Sands
China,
Ltd.
139,225
612
Malaysia
-
0.1%
CIMB
Group
Holdings
BHD
309,300
332
Mexico
-
0.3%
Grupo
Televisa
SAB
-
ADR(Æ)
143,442
1,182
Netherlands
-
4.9%
ABN
AMRO
Bank
NV(Þ)
71,219
699
Adyen
NV(Æ)(Þ)
446
1,038
Akzo
Nobel
NV
4,456
479
ASML
Holding
NV
4,612
2,229
Exor
NV
1,643
132
Ferrari
NV
3,625
838
Heineken
NV
38,919
4,339
ING
Groep
NV(Æ)
338,665
3,207
Koninklijke
Ahold
Delhaize
NV
11,431
323
Koninklijke
KPN
NV
127,476
386
Koninklijke
Philips
NV(Æ)
3,679
197
NN
Group
NV
3,580
157
PostNL
NV
-
ADR(Æ)
118,940
406
Randstad
NV(Æ)
2,989
195
Royal
Dutch
Shell
PLC
Class
A
125,423
2,238
Royal
Dutch
Shell
PLC
Class
B
120,472
2,076
Yandex
NV
Class
A(Æ)(Ñ)
8,695
605
19,544
New
Zealand
-
0.4%
a2
Milk
Co.,
Ltd.
(The)(Æ)
27,158
240
Fisher
&
Paykel
Healthcare
Corp.,
Ltd.
50,156
1,191
Meridian
Energy,
Ltd.
22,166
118
Spark
New
Zealand,
Ltd.
39,929
135
1,684
Norway
-
0.5%
DNB
ASA
6,400
126
Mowi
ASA
11,710
261
Norsk
Hydro
ASA
241,043
1,112
Orkla
ASA
25,062
254
Yara
International
ASA
4,751
197
1,950
Russia
-
0.3%
Gazprom
PJSC
-
ADR
102,008
568
Lukoil
PJSC
-
ADR
2,628
179
Sberbank
of
Russia
PJSC
-
ADR
35,611
513
1,260
Singapore
-
1.0%
CapitaLand,
Ltd.
64,500
160
DBS
Group
Holdings,
Ltd.
63,776
1,206
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
59
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Genting
Singapore,
Ltd.
99,700
64
Oversea-Chinese
Banking
Corp.,
Ltd.
22,391
170
Singapore
Technologies
Engineering,
Ltd.
21,600
62
Singapore
Telecommunications,
Ltd.
246,700
431
United
Overseas
Bank,
Ltd.
13,200
225
UOL
Group,
Ltd.
45,800
268
Wilmar
International,
Ltd.
397,400
1,400
3,986
South
Africa
-
0.5%
Anglo
American
PLC
29,616
986
Gold
Fields,
Ltd.
-
ADR
43,386
402
Impala
Platinum
Holdings,
Ltd.
16,767
231
MTN
Group,
Ltd.
61,938
254
1,873
South
Korea
-
2.4%
Hankook
Tire
&
Technology
Co.,
Ltd.(Æ)
16,742
608
KB
Financial
Group,
Inc.
25,996
1,032
KT
Corp.
-
ADR
75,080
827
LG
Household
&
Health
Care,
Ltd.(Æ)
1,506
2,245
POSCO
8,559
2,145
Samsung
Electronics
Co.,
Ltd.
15,395
1,151
Shinhan
Financial
Group
Co.,
Ltd.
54,277
1,606
9,614
Spain
-
1.4%
ACS
Actividades
de
Construccion
y
Servicios
SA
4,727
157
Banco
Bilbao
Vizcaya
Argentaria
SA
-
ADR
30,527
150
Banco
Santander
SA
-
ADR(Æ)
68,327
212
Bankia
SA
460,725
817
CaixaBank
SA
360,916
927
Cellnex
Telecom
SA(Þ)
31,374
1,884
Endesa
SA
-
ADR
8,876
243
Industria
de
Diseno
Textil
SA
20,080
639
Naturgy
Energy
Group
SA
6,870
160
Red
Electrica
Corp.
SA
10,423
214
Repsol
SA
-
ADR
16,646
168
Telefonica
SA
-
ADR
40,445
162
5,733
Sweden
-
1.8%
Assa
Abloy
AB
Class
B
28,749
707
Atlas
Copco
AB(Æ)
15,908
814
Bausch
&
Lomb,
Inc.(Æ)
17,213
609
Epiroc
AB
Class
A
11,110
202
Hexagon
AB
Class
B
2,334
213
Husqvarna
AB
Class
B
12,745
165
ICA
Gruppen
AB
1,554
78
Investor
AB
Class
B
1,564
114
Kinnevik
AB
Class
B(Æ)
3,988
201
NIBE
Industrier
AB
B
Shares(Æ)
4,887
160
Sandvik
AB(Æ)
65,040
1,589
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Skandinaviska
Enskilda
Banken
AB
Class
A
15,012
154
Skanska
AB
Class
B
7,915
202
SKF
AB
Class
B
7,413
192
Svenska
Handelsbanken
AB
Class
A(Æ)
16,973
170
Swedbank
AB
Class
A
10,741
189
Swedish
Match
AB
4,332
337
Telefonaktiebolaget
LM
Ericsson
Class
B
57,187
678
Volvo
AB
Class
B
10,670
251
7,025
Switzerland
-
7.6%
ABB,
Ltd.
27,881
780
Adecco
Group
AG
28,574
1,916
Alcon,
Inc.(Æ)
6,099
407
Baloise
Holding
AG
1,774
317
Chocoladefabriken
Lindt
&
Spruengli
AG
23
224
Cie
Financiere
Richemont
SA
Class
A
1,133
102
Credit
Suisse
Group
AG
71,831
924
Geberit
AG
286
179
Julius
Baer
Group,
Ltd.
22,974
1,331
Kuehne
&
Nagel
International
AG
1,290
292
LafargeHolcim
,
Ltd.(Æ)
32,476
1,782
Lonza
Group
AG
1,414
908
Nestle
SA
47,803
5,629
Novartis
AG
33,332
3,148
Partners
Group
Holding
AG
1,477
1,725
Roche
Holding
AG
9,187
3,205
SGS
SA
156
470
Sika
AG
746
204
Straumann
Holding
AG
135
157
Swiss
Life
Holding
AG
655
305
Swiss
Re
AG
5,138
483
Swisscom
AG
399
215
Temenos
AG
7,490
1,045
UBS
Group
AG
259,524
3,631
Zurich
Insurance
Group
AG
1,811
768
30,147
Taiwan
-
2.6%
Catcher
Technology
Co.,
Ltd.
119,513
879
Hon
Hai
Precision
Industry
Co.,
Ltd.
617,184
2,015
MediaTek
,
Inc.
38,000
1,015
Shin
Kong
Financial
Holding
Co.,
Ltd.
938,000
294
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
109,000
2,047
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
-
ADR
35,666
3,890
10,140
Thailand
-
0.2%
Kasikornbank
PCL
195,800
747
Turkey
-
0.1%
Turk
Telekomunikasyon
AS
230,967
266
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
60
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
United
Kingdom
-
11.1%
3i
Group
PLC
29,168
466
Admiral
Group
PLC
5,541
220
Ashtead
Group
PLC
4,930
232
Associated
British
Foods
PLC(Æ)
7,585
235
AstraZeneca
PLC
16,820
1,680
Aviva
PLC
192,090
862
Babcock
International
Group
PLC(Æ)
90,925
349
BAE
Systems
PLC
52,553
351
Barclays
PLC
536,236
1,076
Barratt
Developments
PLC(Æ)
34,374
315
Berkeley
Group
Holdings
PLC
5,420
352
BP
PLC
451,048
1,554
British
American
Tobacco
PLC
14,755
549
British
Land
Co.
PLC
(The)(ö)
52,154
349
BT
Group
PLC(Æ)
437,551
792
Centrica
PLC(Æ)
467,952
299
Coca-Cola
European
Partners
PLC
1,154
58
Compass
Group
PLC
113,148
2,111
Diageo
PLC
19,443
768
Direct
Line
Insurance
Group
PLC
68,627
298
Experian
PLC
2,158
82
Ferguson
PLC
1,785
217
Fiat
Chrysler
Automobiles
NV
13,306
238
GlaxoSmithKline
PLC
-
ADR
11,351
208
Halma
PLC
8,601
288
HSBC
Holdings
PLC
375,389
1,959
Imperial
Tobacco
Group
PLC
5,982
126
InterContinental
Hotels
Group
PLC(Æ)
980
64
Intermediate
Capital
Group
PLC(Æ)
34,526
816
J
Sainsbury
PLC
1,119,555
3,455
John
Wood
Group
PLC(Æ)
589,152
2,502
Johnson
Matthey
PLC
5,879
195
Kingfisher
PLC(Æ)
257,214
952
Land
Securities
Group
PLC(ö)
34,795
321
Legal
&
General
Group
PLC
53,411
196
Linde
PLC
12,458
3,236
Lloyds
Banking
Group
PLC(Æ)
641,761
324
London
Stock
Exchange
Group
PLC
4,342
535
M&G
PLC
56,894
154
Marks
&
Spencer
Group
PLC(Æ)
175,249
327
Mondi
PLC
9,380
221
Natwest
Group
PLC
402,467
931
Persimmon
PLC
Class
A
8,194
310
Reckitt
Benckiser
Group
PLC
763
68
RELX
PLC
13,179
324
RSA
Insurance
Group
PLC
31,912
297
Segro
PLC(ö)
25,773
334
Smith
&
Nephew
PLC
46,121
963
Smiths
Group
PLC
3,388
70
St.
James's
Place
PLC
15,239
236
Standard
Chartered
PLC
340,431
2,184
Standard
Life
Aberdeen
PLC(Æ)
77,249
299
Taylor
Wimpey
PLC(Æ)
103,021
234
TechnipFMC
PLC
195,905
1,842
Tesco
PLC
301,318
951
Travis
Perkins
PLC(Æ)
112,585
2,077
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Unilever
PLC
8,412
506
Vodafone
Group
PLC
974,940
1,604
Wausau
Paper
Corp.
118,151
1,284
Wm
Morrison
Supermarkets
PLC
80,853
196
44,042
United
States
-
0.6%
Lululemon
Athletica
,
Inc.(Æ)
1,643
572
Ovintiv
,
Inc.
21,385
307
VEON,
Ltd.(Æ)
134,442
203
Viatris
,
Inc.
Class
W(Æ)
66,583
1,248
2,330
Total
Common
Stocks
(cost
$339,945)
366,161
Preferred
Stocks
-
2.1%
Germany
-
0.9%
Henkel
AG
&
Co.
KGaA
2.075%
(Ÿ)
2,432
274
Porsche
Automobil
Holding
SE
3.942%
(Ÿ)
5,695
393
Volkswagen
AG
3.354%
(Ÿ)
16,453
3,065
3,732
South
Korea
-
1.2%
Samsung
Electronics
Co.,
Ltd.
1.351%
(Ÿ)
69,181
4,696
Total
Preferred
Stocks
(cost
$6,138)
8,428
Warrants
and
Rights
-
0.0%
Spain
-
0.0%
Repsol
SA(Æ)
2021 Rights
16,646
6
Total
Warrants
and
Rights
(cost
$6)
6
Short-Term
Investments
-
2.4%
United
States
-
2.4%
U.S.
Cash
Management
Fund(@)
9,584,418
(∞)
9,583
Total
Short-Term
Investments
(cost
$9,583)
9,583
Other
Securities
-
0.2%
U.S.
Cash
Collateral
Fund(@)(×)
601,161
(∞)
601
Total
Other
Securities
(cost
$601)
601
Total
Investments
-
97.3%
(identified
cost
$356,273)
384,779
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
61
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Other
Assets
and
Liabilities,
Net
-
2.7%
10,739
Net
Assets
-
100.0%
395,518
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
62
International
Developed
Markets
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
2.6%
ABN
AMRO
Bank
NV
06/26/19
EUR
71,219
16.02
1,141
699
Adyen
NV
07/25/19
EUR
446
1,066.56
476
1,038
Amundi
SA
02/21/19
EUR
18,068
64.65
1,168
1,475
Cellnex
Telecom
SA
06/19/17
EUR
31,374
35.00
1,098
1,884
Covestro
AG
08/15/19
EUR
40,921
38.31
1,568
2,524
Reliance
Industries,
Ltd.
10/21/20
USD
9,265
56.22
521
507
Scout24
AG
12/17/20
EUR
1,967
83.16
164
161
WH
Group,
Ltd.
06/26/19
HKD
123,000
1.02
125
103
Worldline
SA
02/14/20
EUR
8,621
81.51
703
834
Zalando
SE
12/12/19
EUR
11,083
56.07
621
1,235
10,460
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
312
EUR
11,076
03/21
178
FTSE
100
Index
Futures
34
GBP
2,183
03/21
(10)
MSCI
Singapore
Index
Futures
2
SGD
65
01/21
—
S&P/TSX
60
Index
Futures
132
CAD
27,163
03/21
(206)
SPI
200
Index
Futures
101
AUD
16,506
03/21
(119)
TOPIX
Index
Futures
86
JPY
1,551,869
03/21
364
Short
Positions
MSCI
Emerging
Markets
Index
Futures
617
USD
39,741
03/21
(1,128)
S&P
500
E-Mini
Index
Futures
82
USD
15,370
03/21
(447)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(1,368)
Foreign
Currency
Exchange
Contracts
Amounts
in thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
1,962
AUD
2,600
03/17/21
44
Bank
of
America
USD
2,802
JPY
290,000
03/17/21
9
Bank
of
America
CHF
3,200
USD
3,608
03/17/21
(14)
Bank
of
America
EUR
2,900
USD
3,536
03/17/21
(13)
Bank
of
Montreal
USD
2,639
AUD
3,531
03/17/21
85
Bank
of
Montreal
USD
3,555
CAD
4,542
03/17/21
14
Bank
of
Montreal
USD
2,059
EUR
1,698
03/17/21
19
Bank
of
Montreal
USD
1,680
GBP
1,251
03/17/21
32
Bank
of
Montreal
USD
3,756
JPY
390,783
03/17/21
31
Bank
of
New
York
USD
2,640
AUD
3,531
03/17/21
84
Bank
of
New
York
USD
3,552
CAD
4,542
03/17/21
17
Bank
of
New
York
USD
2,060
EUR
1,698
03/17/21
18
Bank
of
New
York
USD
1,681
GBP
1,251
03/17/21
31
Bank
of
New
York
USD
3,757
JPY
390,783
03/17/21
31
JPMorgan
Chase
USD
2,641
AUD
3,531
03/17/21
83
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
63
Foreign
Currency
Exchange
Contracts
Amounts
in thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
JPMorgan
Chase
USD
3,553
CAD
4,542
03/17/21
16
JPMorgan
Chase
USD
2,061
EUR
1,698
03/17/21
17
JPMorgan
Chase
USD
1,682
GBP
1,251
03/17/21
30
JPMorgan
Chase
USD
3,756
JPY
390,783
03/17/21
32
Royal
Bank
of
Canada
USD
2,643
AUD
3,531
03/17/21
80
Royal
Bank
of
Canada
USD
3,554
CAD
4,542
03/17/21
15
Royal
Bank
of
Canada
USD
2,063
EUR
1,698
03/17/21
15
Royal
Bank
of
Canada
USD
1,684
GBP
1,251
03/17/21
28
Royal
Bank
of
Canada
USD
1,997
JPY
206,000
03/17/21
—
Royal
Bank
of
Canada
USD
3,758
JPY
390,783
03/17/21
29
Royal
Bank
of
Canada
EUR
1,650
USD
2,027
03/17/21
8
Royal
Bank
of
Canada
ILS
24
USD
7
01/04/21
—
Standard
Chartered
USD
2,640
AUD
3,531
03/17/21
83
Standard
Chartered
USD
3,552
CAD
4,542
03/17/21
17
Standard
Chartered
USD
2,060
EUR
1,698
03/17/21
18
Standard
Chartered
USD
1,681
GBP
1,251
03/17/21
30
Standard
Chartered
USD
3,755
JPY
390,783
03/17/21
33
State
Street
USD
113
CHF
100
03/17/21
—
State
Street
USD
3,360
NOK
29,510
03/17/21
82
State
Street
USD
1,329
SEK
11,260
03/17/21
40
State
Street
DKK
13,240
USD
2,157
03/17/21
(20)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
1,024
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
$
161
$
—
$
—
$
—
$
161
—
*
Australia
—
6,066
—
—
6,066
1.5
Austria
—
609
—
—
609
0.1
Belgium
—
1,526
—
—
1,526
0.4
Brazil
726
1,619
—
—
2,345
0.6
Canada
17,664
—
1
—
17,665
4.5
Cayman
Islands
320
1,194
—
—
1,514
0.4
China
4,797
6,521
—
—
11,318
2.9
Colombia
—
22
—
—
22
—
*
Denmark
—
9,076
—
—
9,076
2.3
Finland
—
5,094
—
—
5,094
1.3
France
—
37,900
—
—
37,900
9.6
Germany
—
20,938
—
—
20,938
5.3
Hong
Kong
—
9,602
—
—
9,602
2.4
India
—
5,245
—
—
5,245
1.3
Indonesia
—
253
—
—
253
0.1
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
64
International
Developed
Markets
Fund
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Ireland
8,236
6,388
—
—
14,624
3.7
Israel
—
279
—
—
279
0.1
Italy
—
7,734
—
—
7,734
2.0
Japan
—
66,879
—
—
66,879
16.9
Luxembourg
468
4,376
—
—
4,844
1.2
Macao
—
612
—
—
612
0.2
Malaysia
—
332
—
—
332
0.1
Mexico
1,182
—
—
—
1,182
0.3
Netherlands
605
18,939
—
—
19,544
4.9
New
Zealand
—
1,684
—
—
1,684
0.4
Norway
—
1,950
—
—
1,950
0.5
Russia
—
1,260
—
—
1,260
0.3
Singapore
—
3,986
—
—
3,986
1.0
South
Africa
402
1,471
—
—
1,873
0.5
South
Korea
827
8,787
—
—
9,614
2.4
Spain
—
5,733
—
—
5,733
1.4
Sweden
—
7,025
—
—
7,025
1.8
Switzerland
—
30,147
—
—
30,147
7.6
Taiwan
3,890
6,250
—
—
10,140
2.6
Thailand
—
747
—
—
747
0.2
Turkey
—
266
—
—
266
0.1
United
Kingdom
1,900
42,142
—
—
44,042
11.1
United
States
2,330
—
—
—
2,330
0.6
Preferred
Stocks
—
8,428
—
—
8,428
2.1
Warrants
and
Rights
6
—
—
—
6
—
*
Short-Term
Investments
—
—
—
9,583
9,583
2.4
Other
Securities
—
—
—
601
601
0.2
Total
Investments
43,514
331,080
1
10,184
384,779
97.3
Other
Assets
and
Liabilities,
Net
2.7
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
542
—
—
—
542
0.1
Foreign
Currency
Exchange
Contracts
—
1,071
—
—
1,071
0.3
A
Liabilities
Futures
Contracts
(1,910)
—
—
—
(1,910)
(0.5)
Foreign
Currency
Exchange
Contracts
—
(47)
—
—
(47)
(—)
*
Total
Other
Financial
Instruments
**
$
(1,368)
$
1,024
$
—
$
—
$
(344)
*
Less
than
0.05%
of
net
assets.
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
65
**
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
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
December
31,
2020,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Sector
Exposure
Fair
Value
$
Common
Stocks
Consumer
Discretionary
..........................................................
54,413
Consumer
Staples
...................................................................
21,018
Energy
....................................................................................
20,459
Financial
Services
...................................................................
84,141
Health
Care
.............................................................................
26,873
Materials
and
Processing
........................................................
45,808
Producer
Durables
..................................................................
53,091
Technology
..............................................................................
46,853
Utilities
...................................................................................
13,505
Preferred
Stocks
Consumer
Discretionary
..........................................................
3,458
Consumer
Staples
...................................................................
274
Technology
..............................................................................
4,696
Warrants
and
Rights
....................................................................
6
Short-Term
Investments
................................................................
9,583
Other
Securities
...........................................................................
601
Total
Investments
....................................................................
384,779
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
66
International
Developed
Markets
Fund
Russell
Investment
Funds
International
Developed
Markets
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
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
$
—
$
1,071
Variation
margin
on
futures
contracts*
542
—
Total
$
542
$
1,071
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
1,910
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
47
Total
$
1,910
$
47
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
2,536
$
—
Foreign
currency
exchange
contracts
—
1,683
Total
$
2,536
$
1,683
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(77)
$
—
Foreign
currency
exchange
contracts
—
608
Total
$
(77)
$
608
*
Includes
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
67
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
590
$
—
$
590
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
1,071
—
1,071
Total
Financial
and
Derivative
Assets
1,661
—
1,661
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
1,661
$
—
$
1,661
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
$
163
$
—
$
—
$
163
Bank
of
New
York
166
—
—
166
Citigroup
730
—
590
140
JPMorgan
Chase
305
34
—
271
Royal
Bank
of
Canada
168
—
—
168
Standard
Chartered
129
—
—
129
Total
$
1,661
$
34
$
590
$
1,037
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
68
International
Developed
Markets
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
47
$
—
$
47
Total
Financial
and
Derivative
Liabilities
47
—
47
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
47
$
—
$
47
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
$
13
$
—
$
—
$
13
JPMorgan
Chase
34
34
—
—
Total
$
47
$
34
$
—
$
13
*
Fair
value
of
securities
on
loan
as
reported
in
the
footnotes
to
the
Statement
of
Assets
and
Liabilities.
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
69
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
356,273
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
384,779
Foreign
currency
holdings(^)
.........................................................................................................................................................
1,126
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
1,071
Receivables:
Dividends
and
interest
.......................................................................................................................................................
251
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Investments
sold
................................................................................................................................................................
676
Fund
shares
sold
................................................................................................................................................................
12
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
782
From
broker(a)
...................................................................................................................................................................
9,815
Total
assets
.................................................................................................................................................
398,513
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
272
Fund
shares
redeemed
.......................................................................................................................................................
193
Accrued
fees
to
affiliates
....................................................................................................................................................
319
Other
accrued
expenses
.....................................................................................................................................................
199
Variation
margin
on
futures
contracts
.................................................................................................................................
1,364
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
47
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
601
Total
liabilities
.............................................................................................................................................
2,995
Net
Assets
............................................................................................................................................................
$
395,518
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
70
International
Developed
Markets
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
24,088
Shares
of
beneficial
interest
...........................................................................................................................................................
325
Additional
paid-in
capital
..............................................................................................................................................................
371,105
Net
Assets
............................................................................................................................................................
$
395,518
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
12.18
Net
assets
...............................................................................................................................................................................
$
395,517,613
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
32,467,701
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
1,115
(*)
Securities
on
loan
included
in
investments
$
590
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
10,184
(a)
Receivable
from
Broker
for
Futures
$
9,815
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
71
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
8,526
Dividends
from
affiliated
funds
.........................................................................................................................................
67
Securities
lending
income
(net)
.........................................................................................................................................
32
Less
foreign
taxes
withheld
...............................................................................................................................................
(894)
Total
investment
income
...............................................................................................................................................................
7,731
Expenses
Advisory
fees
....................................................................................................................................................................
3,116
Administrative
fees
...........................................................................................................................................................
173
Custodian
fees
...................................................................................................................................................................
176
Transfer
agent
fees
............................................................................................................................................................
15
Professional
fees
...............................................................................................................................................................
101
Trustees’
fees
....................................................................................................................................................................
17
Printing
fees
......................................................................................................................................................................
52
Miscellaneous
...................................................................................................................................................................
14
Total
expenses
...............................................................................................................................................................................
3,664
Net
investment
income
(loss)
........................................................................................................................................................
4,067
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
4,537
Investments
in
affiliated
funds
..........................................................................................................................................
1
Futures
contracts
..............................................................................................................................................................
2,536
Foreign
currency
exchange
contracts
................................................................................................................................
1,683
Foreign
currency-related
transactions
...............................................................................................................................
118
Net
realized
gain
(loss)
..................................................................................................................................................................
8,875
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
5,030
Investments
in
affiliated
funds
..........................................................................................................................................
1
Futures
contracts
..............................................................................................................................................................
(77)
Foreign
currency
exchange
contracts
................................................................................................................................
608
Foreign
currency-related
transactions
...............................................................................................................................
135
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
5,697
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
14,572
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
18,639
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
72
International
Developed
Markets
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
4,067
$
7,866
Net
realized
gain
(loss)
......................................................................................................................
8,875
(1,509)
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
5,697
62,497
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
18,639
68,854
Distributions
To
shareholders
.................................................................................................................................
(4,239)
(9,905)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(4,239)
(9,905)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(15,988)
(19,439)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(1,588)
39,510
Net
Assets
Beginning
of
period
.................................................................................................................................
397,106
357,596
End
of
period
..........................................................................................................................................
$
395,518
$
397,106
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
1,807
$
17,388
1,397
$
15,22
7
Proceeds
from
reinvestment
of
distributions
362
4,239
852
9,90
5
Payments
for
shares
redeemed
(3,587)
(37,615)
(3,974)
(44,571)
Total
increase
(decrease)
(1,418)
$
(15,988)
(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.
74
International
Developed
Markets
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2020
11.72
.12
.47
.59
(.13)
—
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)
—
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
75
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.13)
12.18
5.08
395,518
1.06
1.06
1.17
59
(.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
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
76
International
Developed
Markets
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2020,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
298,711
Administration
fees
16,595
Transfer
agent
fees
1,460
Trustee
fees
2,302
$
319,068
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
$
138,714
$
139,448
$
1
$
1
$
9,583
$
67
$
—
U.S.
Cash
Collateral
Fund
1,037
28,895
29,331
—
—
601
9
—
$
11,352
$
167,609
$
168,779
$
1
$
1
$
10,184
$
76
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
362,218,530
$
45,341,119
$
(22,760,972)
$
22,580,147
$
5,012,324
$
(3,655,970)
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
4,238,968
$
—
$
—
$
9,905,479
$
—
$
—
Russell
Investment
Funds
Strategic
Bond
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
Strategic
Bond
Fund
77
Strategic
Bond
Fund
Total
Return
1
Year
8
.43%
5
Years
4
.69%§
10
Years
4
.00%§
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
**
Total
Return
1
Year
7
.51%
5
Years
4
.44%§
10
Years
3
.84%§
Russell
Investment
Funds
Strategic
Bond
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
78
Strategic
Bond
Fund
The
Strategic
Bond
Fund
(the
“Fund”)
employs
a
multi-manager
approach
whereby
portions
of
the
Fund
are
allocated
to
different
money
manager
strategies.
Fund
assets
not
allocated
to
money
managers
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
advisor.
RIM
may
change
the
Fund's
asset
allocation
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2020,
the
Fund
had
four
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
total
return.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
gained
8.43%.
This
is
compared
to
the
Fund’s
benchmark,
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
which
gained
7.51%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Intermediate
Core-Plus
Bond
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
8.22%.
This
return
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
RIM
may
assign
a
money
manager
a
benchmark
other
than
the
Fund’s
index.
However,
the
Fund’s
primary
index
remains
the
benchmark
for
the
Fund.
How
did
market
conditions
affect
the
Fund’s
performance?
The
calendar
year
ended
December
31,
2020
was
an
unprecedented
and
uncertain
year.
The
unexpected
global
COVID-19
pandemic
and
U.S.
presidential
election
together
created
a
turbulent
market.
In
March
2020,
the
spike
in
COVID-19
cases
drove
panic
selling
so
fiercely
that
equity
market
circuit
breakers
triggered
four
times.
This
panic
selloff
quickly
spread
across
asset
classes.
Investment
grade
CDX
credit
spread
widened
from
45
bps
to
as
high
as
156
bps
before
it
fell
to
50
bps
at
the
end
of
the
year.
The
Federal
Reserve
Board
quickly
took
action
to
cut
short-
term
interest
rates
to
near
zero
and
promised
to
keep
the
rates
at
or
around
zero
until
the
end
of
2023.
Congress,
on
the
other
hand,
passed
a
stimulus
package
that
included
direct
pay
outs
to
many
U.S.
taxpayers.
Concerns
about
volatility
and
downside
risk
surrounding
the
U.S.
Presidential
election
proved
unfounded
as
the
market
continued
its
rally
late
in
the
fourth
quarter
despite
some
extended
uncertainty
with
respect
to
the
election
outcome.
With
monetary
policy
and
fiscal
policy
working
in
parallel,
U.S.
treasuries
had
strong
one-year
performance.
The
10-year
treasury,
which
began
the
year
at
a
yield
of
1.92%,
fell
to
as
low
as
0.57%
in
March
2020
before
ending
the
year
at
a
yield
of
0.91%.
Credit
spread
for
investment
grade
corporate
bonds
experienced
a
V-shaped
recovery
in
this
tumultuous
year.
The
Bloomberg
Barclays
U.S.
Corporate
Bond
Index
posted
a
total
return
of
7.44%
for
the
calendar
year,
finishing
the
year
comfortably
ahead
of
equivalent
duration
treasuries
despite
the
deep
hole
investment
grade
corporates
dug
into
earlier
in
the
year.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
The
Fund
was
generally
positioned
long
duration,
which
was
a
substantial
positive
for
performance
as
interest
rates
fell.
The
Fund
was
underweight
investment
grade
credit
and
rotated
substantially
into
the
sector
during
the
first
quarter
2020
market
sell
off
and
subsequent
rally,
which
also
contributed
positively
to
relative
performance.
On
the
flipside,
the
Fund
was
generally
short
U.S.
dollar
and
long
various
emerging
market
currencies,
which
proved
particularly
detrimental
during
the
first
quarter
of
2020.
Lastly,
the
selection
and
rotation
of
strategies
within
credit
was
a
meaningful
positive
to
performance
as
early
in
the
calendar
year
much
of
the
Fund’s
high
yield
corporate
exposure
was
obtained
via
CDX,
a
derivative
instrument
that
seeks
to
track
the
performance
of
corporate
bond
spreads,
which
held
up
better
than
the
cash
bond
market
during
March.
Later
in
the
year,
more
of
the
Fund’s
high
yield
exposure
was
in
fallen
angels,
which
rallied
strongly
off
the
March
lows.
The
Fund
employs
discretionary
money
managers.
The
Fund’s
discretionary
money
managers
select
the
individual
portfolio
securities
for
the
assets
assigned
to
them.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
certain
of
the
Fund’s
money
managers,
Western
Asset
Management
Company
and
Western
Asset
Management
Company
Limited
(“Western”)
was
the
best
performing
manager,
outperforming
both
the
Fund’s
benchmark
and
their
RIM-
assigned
benchmark.
Western’s
long
duration
position
was
a
key
driver
of
performance.
A
bias
toward
corporate
bonds
was
a
moderate
positive,
but
Western
tactically
managed
this
exposure,
increasing
it
during
March
to
capture
more
upside
in
the
rally
than
was
lost
on
the
downturn,
leading
to
even
stronger
total
performance.
Western’s
currency
exposure
was
largely
a
detractor
during
the
period
due
its
short
U.S.
dollar
position
and
long
emerging
markets
positions
in
the
first
quarter
of
2020.
Russell
Investment
Funds
Strategic
Bond
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
Strategic
Bond
Fund
79
Schroder
Investment
Management
North
America
Inc.
(“Schroder”)
was
the
worst
performing
manager
during
the
period,
underperforming
both
the
Fund’s
benchmark
and
their
RIM-
assigned
benchmark.
The
shorter
duration
nature
of
Schroder’s
securitized
credit
mandate
drove
the
underperformance
relative
to
the
Fund’s
benchmark.
However,
Schroder’s
underweight
to
agency
mortgage-backed
securities
was
what
drove
negative
performance
relative
to
the
RIM-assigned
benchmark
as
that
sector
held
up
better
with
Fed
policy
support
than
other
sectors
Schroders
favored,
such
as
AAA-rated
commercial
mortgage-
backed
securities
and
collateralized
loan
obligations.
During
the
period,
RIM
managed
multiple
positioning
strategies
to
seek
to
achieve
the
desired
risk/return
profile
for
the
Fund.
RIM's
U.S.
investment
grade
intelligent
credit
positioning
strategy,
which
screens
securities
based
on
value
within
the
Bloomberg
Barclays
US
Corporate
Bond
Index
and
purchases
physical
bonds
that
RIM
believes
to
be
undervalued,
outperformed
the
Fund’s
benchmark.
The
strategy
benefited
both
from
its
longer
duration
nature
as
well
as
defensive
security
selection,
which
preserved
value
during
the
market
sell
off
while
still
capturing
much
of
the
rally.
The
U.S.
government
positioning
strategy,
which
seeks
to
provide
exposure
to
securities
issued
by
the
U.S.
government,
also
outperformed
the
Fund
benchmark
as
the
government
sector
of
the
market
outperformed
in
general
due
to
a
modestly
longer
duration
profile
than
the
Fund
benchmark.
Additionally,
tactical
rotation
of
treasury
inflation-protected
securities
exposure
in
this
strategy
was
additive
to
performance.
RIM
also
managed
a
U.S.
fallen
angels
positioning
strategy
that
invests
in
recently
downgraded
bonds,
which
tend
to
have
lower
prices
as
certain
guidelines
force
selling
and
the
market
is
slow
to
price
in
new
information.
The
strategy
was
funded
during
the
second
quarter
of
the
year.
This
strategy
captured
more
of
the
snapback
than
most
strategies
when
the
market
turned
and
produced
strong
returns
in
the
latter
half
of
the
year.
RIM
also
managed
currency
factor
(carry,
value
and
trend)
and
rates
factor
(carry
and
value)
strategies
which
seek
to
generate
active
returns
through
currency
and
international
rates
positioning,
respectively,
to
reduce
the
Fund’s
reliance
on
traditional
fixed
income
market
risks.
These
strategies
utilize
long
and
short
positions
in
global
government
bond
futures
and
currency
forward
contracts
to
seek
to
achieve
their
objectives.
The
Fund’s
rates
and
currency
factor
strategies
both
underperformed
during
the
year
with
currency
factors
representing
the
more
meaningful
drag
on
performance.
Within
the
rates
strategy,
the
global
decline
in
interest
rates
led
to
considerable
convergence
in
global
interest
rates,
which
was
an
especially
positive
tailwind
for
the
value
component
of
the
rates
factors,
but
this
was
more
than
offset
by
underperformance
from
the
rates
factor.
Among
currency
factors,
trend
was
especially
negative
during
the
year
as
the
market
whipsawed
trend
investors.
During
the
period,
RIM
also
implemented
numerous
tactical
positioning
strategies
via
derivatives
that
added
to
Fund
performance
during
the
period.
RIM
utilized
interest
rate
derivatives
to
extend
duration
throughout
the
period,
which
had
the
greatest
impact
on
total
performance.
RIM
also
utilized
credit
default
swaps
to
tactically
increase
credit
risk
as
the
market
sold
off
and
subsequently
capture
the
market
rally.
The
Fund’s
tactical
positions
in
developed
market
currencies
via
currency
forwards
had
a
muted
impact.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
In
December
2020,
RIM
hired
BlueBay
Asset
Management
LLP.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2020
Styles
BlueBay
Asset
Management
LLP
Full
discretionary
Colchester
Global
Investors
Limited
Full
discretionary
Schroder
Investment
Management
North
America
Inc.
Sector
Specialist
Western
Asset
Management
Company
and
Western
Asset
Management
Company
Limited
Full
discretionary
Russell
Investment
Funds
Strategic
Bond
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
80
Strategic
Bond
Fund
*
Assumes
initial
investment
on
January
1,
2011.
**
The
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
is
an
index,
with
income
reinvested,
generally
representative
of
intermediate-term
government
bonds,
investment-grade
corporate
debt
securities
and
mortgage-backed
securities.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains.
Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased.
Past
performance
is
not
indicative
of
future
results.
Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Strategic
Bond
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
Strategic
Bond
Fund
81
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
on
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,032.20
$
1,021.67
Expenses
Paid
During
Period*
$
3.52
$
3.51
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.69%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments
—
December
31,
2020
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
$
Long-Term
Investments
-
84.4%
Asset-Backed
Securities
-
7.5%
ACE
Securities
Corp.
Mortgage
Loan
Trust
Series
2007-D1
Class
A2
6.336%
due
02/25/38
(~)(Ê)(Þ)
506
502
Applebee's
Funding
LLC
/
IHOP
Funding
LLC
Series
2019-1A
Class
A2I
4.194%
due
06/07/49
(Þ)
339
335
Asset
Backed
Securities
Corp.
Home
Equity
Loan
Trust
Series
2007-HE1
Class
A4
0.308%
due
12/25/36
(USD
1
Month
LIBOR
+
0.140%)(Ê)
375
360
Avis
Budget
Rental
Car
Funding,
LLC
Series
2019-2A
Class
A
3.350%
due
09/22/25
(Þ)
600
641
BCAP
LLC
Trust
Series
2014-RR3
Class
3A2
0.954%
due
07/26/36
(~)(Ê)(Þ)
727
636
Series
2014-RR3
Class
5A2
0.964%
due
10/26/36
(~)(Ê)(Þ)
470
411
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
Series
2016-1A
Class
AA
2.487%
due
12/16/41
(~)(Ê)(Þ)
652
630
Carlyle
Global
Market
Strategies
CLO,
Ltd.
Series
2017-2A
Class
AR
2.025%
due
01/18/29
(USD
3
Month
LIBOR
+
0.890%)(Ê)(Þ)
760
756
Cedar
Funding,
Ltd.
Series
2018-5A
Class
A1R
2.235%
due
07/17/31
(USD
3
Month
LIBOR
+
1.100%)(Ê)(Þ)
1,600
1,600
CIFC
Funding,
Ltd.
Series
2017-2A
Class
A
2.375%
due
04/20/30
(USD
3
Month
LIBOR
+
1.240%)(Ê)(Þ)
971
971
CLI
Funding
VI
LLC
Series
2020-3A
Class
A
2.070%
due
10/18/45
(Þ)
2,339
2,359
Conseco
Financial
Corp.
Series
1998-2
Class
M1
6.940%
due
12/01/28
(~)(Ê)
1,154
1,137
Countrywide
Asset-Backed
Certificates
Series
2007-4
Class
A4W
4.640%
due
04/25/47
1,533
1,651
Dividend
Solar
Loans
LLC
Series
2019-1
Class
A
3.670%
due
08/22/39
(Þ)
306
315
Dryden
50
Senior
Loan
Fund
Series
2017-50A
Class
A1
2.439%
due
07/15/30
(USD
3
Month
LIBOR
+
1.220%)(Ê)(Þ)
1,230
1,230
Fieldstone
Mortgage
Investment
Trust
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2004-4
Class
M3
2.118%
due
10/25/35
(USD
1
Month
LIBOR
+
1.950%)(Ê)
284
284
FirstKey
Homes
Trust
Series
2020-SFR1
Class
A
1.339%
due
09/17/25
(Þ)
881
891
Series
2020-SFR2
Class
A
1.266%
due
10/19/37
(Þ)
742
745
Flatiron
CLO,
Ltd.
Series
2017-1A
Class
A
1.642%
due
05/15/30
(USD
3
Month
LIBOR
+
1.250%)(Ê)(Þ)
1,000
1,000
Goldentree
Loan
Management
US
CLO
2,
Ltd.
Series
2017-2A
Class
A
2.285%
due
11/28/30
(USD
3
Month
LIBOR
+
1.150%)(Ê)(Þ)
1,300
1,300
Series
2020-7A
Class
A
2.308%
due
04/20/31
(USD
3
Month
LIBOR
+
1.900%)(Ê)(Þ)
1,147
1,150
Greenpoint
Manufactured
Housing
Contract
Trust
Series
2000-4
Class
A3
2.190%
due
08/21/31
(USD
1
Month
LIBOR
+
2.000%)(Ê)
725
675
Hertz
Vehicle
Financing
II,
LP
Series
2018-3A
Class
B
4.370%
due
07/25/24
(Þ)
484
486
HSI
Asset
Securitization
Corp.
Trust
Series
2007-OPT1
Class
1A
0.314%
due
12/25/36
(USD
1
Month
LIBOR
+
0.140%)(Ê)
222
189
Invitation
Homes
Trust
Series
2017-SFR2
Class
A
3.153%
due
12/17/36
(USD
1
Month
LIBOR
+
0.850%)(Ê)(Þ)
1,373
1,369
LCM
XXIII,
Ltd.
Series
2020-23A
Class
A1R
2.205%
due
10/20/29
(USD
3
Month
LIBOR
+
1.070%)(Ê)(Þ)
1,020
1,016
LCM
XXV,
Ltd.
Series
2017-25A
Class
A
2.345%
due
07/20/30
(USD
3
Month
LIBOR
+
1.210%)(Ê)(Þ)
1,124
1,123
Legacy
Mortgage
Asset
Trust
Series
2019-GS4
Class
A1
3.438%
due
05/25/59
(~)(Ê)(Þ)
391
393
Long
Beach
Mortgage
Loan
Trust
Series
2004-1
Class
M1
0.918%
due
02/25/34
(USD
1
Month
LIBOR
+
0.750%)(Ê)
733
718
Series
2004-4
Class
M1
1.068%
due
10/25/34
(USD
1
Month
LIBOR
+
0.900%)(Ê)
521
514
Madison
Park
Funding
XIII,
Ltd.
Series
2018-13A
Class
AR2
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
2.085%
due
04/19/30
(USD
3
Month
LIBOR
+
0.950%)(Ê)(Þ)
574
571
Madison
Park
Funding
XVIII,
Ltd.
Series
2017-18A
Class
A1R
2.299%
due
10/21/30
(USD
3
Month
LIBOR
+
1.190%)(Ê)(Þ)
1,922
1,921
Magnetite
XVIII,
Ltd.
Series
2018-18A
Class
AR
1.472%
due
11/15/28
(USD
3
Month
LIBOR
+
1.080%)(Ê)(Þ)
1,488
1,486
Navient
Private
Education
Refi
Loan
Trust
Series
2020-HA
Class
A
1.310%
due
01/15/69
(Þ)
1,052
1,063
Navient
Student
Loan
Trust
Series
2020-EA
Class
A
1.690%
due
05/15/69
(Þ)
3,810
3,888
Series
2020-FA
Class
A
1.220%
due
07/15/69
(Þ)
830
839
New
Century
Home
Equity
Loan
Trust
Series
2003-6
Class
M1
1.605%
due
01/25/34
(USD
1
Month
LIBOR
+
1.080%)(Ê)
314
306
Oak
Street
Investment
Grade
Net
Lease
Fund
Series
2020-1A
Class
A1
1.850%
due
10/20/50
(Þ)
260
262
OneMain
Financial
Issuance
Trust
Series
2019-2A
Class
A
3.140%
due
10/14/36
(Þ)
500
540
Series
2020-1A
Class
A
3.840%
due
05/14/32
(Þ)
555
585
Series
2020-2A
Class
A
1.750%
due
09/14/35
(Þ)
1,529
1,556
Option
One
Mortgage
Loan
Trust
Series
2007-FXD1
Class
3A4
5.860%
due
01/25/37
(~)(Ê)
670
684
PFS
Financing
Corp.
Series
2020-G
Class
A
0.970%
due
02/15/26
(Þ)
1,287
1,294
Popular
ABS
Mortgage
Pass-Through
Trust
Series
2006-C
Class
A4
0.418%
due
07/25/36
(USD
1
Month
LIBOR
+
0.250%)(Ê)
107
107
Series
2006-D
Class
A3
0.428%
due
11/25/36
(USD
1
Month
LIBOR
+
0.260%)(Ê)
983
970
Preston
Ridge
Partners
Mortgage
LLC
Series
2020-1A
Class
A1
2.981%
due
02/25/25
(~)(Ê)(Þ)
2,376
2,382
Renaissance
Home
Equity
Loan
Trust
Series
2006-1
Class
AF6
5.746%
due
05/25/36
(~)(Ê)
94
63
Residential
Asset
Mortgage
Products
Trust
Series
2006-RZ1
Class
M4
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
0.738%
due
03/25/36
(USD
1
Month
LIBOR
+
0.570%)(Ê)
960
938
Riserva
CLO,
Ltd.
Series
2019-3A
Class
AR
2.275%
due
10/18/28
(USD
3
Month
LIBOR
+
1.140%)(Ê)(Þ)
940
940
SBA
Small
Business
Investment
Cos.
Series
2017-10A
Class
1
2.845%
due
03/10/27
176
187
Series
2019-10A
Class
1
3.113%
due
03/10/29
176
187
Shackleton
CLO,
Ltd.
Series
2018-4RA
Class
A1A
2.311%
due
04/13/31
(USD
3
Month
LIBOR
+
1.000%)(Ê)(Þ)
930
922
SLM
Private
Credit
Student
Loan
Trust
Series
2005-B
Class
A4
0.643%
due
06/15/39
(USD
3
Month
LIBOR
+
0.330%)(Ê)
160
153
Series
2006-A
Class
A5
0.603%
due
06/15/39
(USD
3
Month
LIBOR
+
0.290%)(Ê)
164
157
SMB
Private
Education
Loan
Trust
Series
2019-B
Class
A2B
1.185%
due
06/15/37
(USD
1
Month
LIBOR
+
1.000%)(Ê)(Þ)
190
191
SoFi
Professional
Loan
Program
Trust
Series
2019-A
Class
A2FX
3.690%
due
06/15/48
(Þ)
730
761
Series
2020-C
Class
AFX
1.950%
due
02/15/46
(Þ)
681
696
SpringCastle
America
Funding
LLC
Series
2020-AA
Class
A
1.970%
due
09/25/37
(Þ)
3,625
3,651
Sunrun
Callisto
Issuer,
LLC
Series
2019-2
Class
A
3.610%
due
02/01/55
(Þ)
585
625
TAL
Advantage
VII
LLC
Series
2020-1A
Class
A
2.050%
due
09/20/45
(Þ)
2,200
2,219
Textainer
Marine
Containers
VII,
Ltd.
Series
2020-1A
Class
A
2.730%
due
08/21/45
(Þ)
1,667
1,714
Textainer
Marine
Containers,
Ltd.
Series
2020-2A
Class
A
2.100%
due
09/20/45
(Þ)
1,539
1,561
THL
Credit
Wind
River
CLO,
Ltd.
Series
2017-2A
Class
AR
2.365%
due
10/18/30
(USD
3
Month
LIBOR
+
1.230%)(Ê)(Þ)
985
985
Towd
Point
Mortgage
Trust
Series
2016-3
Class
A1
2.250%
due
04/25/56
(~)(Ê)(Þ)
113
114
Series
2019-1
Class
A1
3.750%
due
03/25/58
(~)(Ê)(Þ)
1,646
1,769
Series
2019-4
Class
A1
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
2.900%
due
10/25/59
(~)(Þ)
1,505
1,519
Series
2020-MH1
Class
A1
2.250%
due
02/25/60
(~)(Ê)(Þ)
3,051
3,102
United
States
Small
Business
Administration
Series
2019-20D
Class
1
2.980%
due
04/01/39
65
71
Series
2019-25G
Class
1
2.690%
due
07/01/44
68
73
Voya
CLO,
Ltd.
Series
2020-2A
Class
A1RR
2.155%
due
04/17/30
(USD
3
Month
LIBOR
+
1.020%)(Ê)(Þ)
2,449
2,433
68,872
Corporate
Bonds
and
Notes
-
23.7%
3M
Co.
2.375%
due
08/26/29
70
76
3.050%
due
04/15/30
30
34
3.700%
due
04/15/50
170
211
Abbott
Laboratories
3.750%
due
11/30/26
151
177
4.750%
due
11/30/36
60
83
4.900%
due
11/30/46
80
118
AbbVie,
Inc.
3.750%
due
11/14/23
30
33
3.600%
due
05/14/25
60
67
Series
WI
3.450%
due
03/15/22
40
41
2.300%
due
11/21/22
440
456
2.600%
due
11/21/24
390
418
3.800%
due
03/15/25
60
67
2.950%
due
11/21/26
100
111
3.200%
due
11/21/29
480
538
4.550%
due
03/15/35
10
13
4.250%
due
11/21/49
20
25
Aetna,
Inc.
2.800%
due
06/15/23
30
32
Air
Lease
Corp.
3.375%
due
07/01/25
80
86
Series
GMTN
3.750%
due
06/01/26
881
968
Aircastle
,
Ltd.
4.250%
due
06/15/26
864
910
Alimentation
Couche-Tard,
Inc.
3.550%
due
07/26/27
(Þ)
702
790
Allstate
Corp.
(The)
Series
B
5.750%
due
08/15/53
(USD
3
Month
LIBOR
+
2.938%)(Ê)
752
805
Ally
Financial,
Inc.
8.000%
due
11/01/31
554
788
Alphabet,
Inc.
0.450%
due
08/15/25
30
30
0.800%
due
08/15/27
50
50
1.100%
due
08/15/30
50
49
2.050%
due
08/15/50
90
86
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Altria
Group,
Inc.
3.490%
due
02/14/22
40
41
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
406
10.200%
due
02/06/39
282
484
5.375%
due
01/31/44
643
821
3.875%
due
09/16/46
70
74
5.950%
due
02/14/49
100
140
Amazon.com,
Inc.
2.500%
due
11/29/22
773
803
0.800%
due
06/03/25
140
142
1.200%
due
06/03/27
190
194
1.500%
due
06/03/30
160
162
4.950%
due
12/05/44
60
88
2.500%
due
06/03/50
140
145
Series
WI
5.200%
due
12/03/25
100
122
3.150%
due
08/22/27
220
251
3.875%
due
08/22/37
50
62
4.050%
due
08/22/47
70
92
4.250%
due
08/22/57
30
43
Ambac
Assurance
Corp.
5.100%
due
12/31/99
(Þ)
1
1
Ambac
LSNI
LLC
6.000%
due
02/12/23
(USD
3
Month
LIBOR
+
5.000%)(Ê)(Þ)
3,675
3,656
American
International
Group,
Inc.
2.500%
due
06/30/25
70
75
3.750%
due
07/10/25
110
124
Amgen,
Inc.
3.625%
due
05/22/24
10
11
4.400%
due
05/01/45
100
127
Andeavor
LLC
Series
WI
5.125%
due
12/15/26
225
245
Anheuser-Busch
Cos.
LLC
/
Anheuser-
Busch
InBev
Worldwide,
Inc.
3.650%
due
02/01/26
470
531
4.900%
due
02/01/46
70
91
Anheuser-Busch
InBev
Worldwide,
Inc.
4.150%
due
01/23/25
360
410
4.000%
due
04/13/28
20
24
3.500%
due
06/01/30
60
69
4.350%
due
06/01/40
160
196
5.550%
due
01/23/49
160
227
4.500%
due
06/01/50
290
365
Anthem,
Inc.
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
127
4.650%
due
08/15/44
632
830
Aon
Corp.
8.205%
due
01/01/27
172
230
Apache
Corp.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
3.250%
due
04/15/22
16
16
4.375%
due
10/15/28
50
52
5.100%
due
09/01/40
120
129
4.750%
due
04/15/43
150
156
4.250%
due
01/15/44
120
118
Apple,
Inc.
2.400%
due
05/03/23
716
751
1.125%
due
05/11/25
280
288
2.450%
due
08/04/26
110
120
4.650%
due
02/23/46
100
142
Ares
Capital
Corp.
3.250%
due
07/15/25
914
967
AT&T,
Inc.
3.800%
due
02/15/27
150
173
2.300%
due
06/01/27
240
256
1.650%
due
02/01/28
200
204
2.250%
due
02/01/32
40
41
2.550%
due
12/01/33
(Þ)
782
804
3.100%
due
02/01/43
150
152
4.350%
due
06/15/45
26
30
3.500%
due
09/15/53
(Þ)
231
230
3.550%
due
09/15/55
(Þ)
83
83
Avnet,
Inc.
4.875%
due
12/01/22
410
440
Avon
Products,
Inc.
7.000%
due
03/15/23
228
247
BAC
Capital
Trust
XIV
Series
G
4.000%
due
09/29/49
(USD
3
Month
LIBOR
+
0.400%)(Ê)(ƒ)
70
70
Bank
of
America
Corp.
3.550%
due
03/05/24
(USD
3
Month
LIBOR
+
0.780%)(Ê)
130
139
4.000%
due
01/22/25
175
197
3.366%
due
01/23/26
(USD
3
Month
LIBOR
+
0.810%)(Ê)
325
358
4.250%
due
10/22/26
340
399
4.271%
due
07/23/29
(USD
3
Month
LIBOR
+
1.310%)(Ê)
200
238
3.974%
due
02/07/30
(USD
3
Month
LIBOR
+
1.210%)(Ê)
500
589
2.592%
due
04/29/31
(SOFR
+
2.150%)(Ê)
140
150
5.000%
due
01/21/44
555
778
4.330%
due
03/15/50
(USD
3
Month
LIBOR
+
1.520%)(Ê)
30
39
4.083%
due
03/20/51
(USD
3
Month
LIBOR
+
3.150%)(Ê)
440
555
Series
AA
6.100%
due
12/31/49
(USD
3
Month
LIBOR
+
3.898%)(Ê)(ƒ)
10
11
Series
GMTN
3.300%
due
01/11/23
460
488
4.450%
due
03/03/26
30
35
3.500%
due
04/19/26
640
725
3.593%
due
07/21/28
(USD
3
Month
LIBOR
+
1.370%)(Ê)
260
295
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
WI
3.004%
due
12/20/23
(USD
3
Month
LIBOR
+
0.790%)(Ê)
42
44
3.419%
due
12/20/28
(USD
3
Month
LIBOR
+
1.040%)(Ê)
482
545
Bank
of
New
York
Mellon
Corp.
(The)
1.600%
due
04/24/25
70
73
BankUnited
,
Inc.
4.875%
due
11/17/25
661
760
Barrick
NA
Finance
LLC
5.700%
due
05/30/41
130
188
BAT
Capital
Corp.
Series
WI
3.557%
due
08/15/27
445
495
4.540%
due
08/15/47
160
177
Bayer
US
Finance
II
LLC
4.700%
due
07/15/64
(Þ)
682
816
Bayer
US
Finance
LLC
3.375%
due
10/08/24
(Þ)
726
792
Becton
Dickinson
and
Co.
3.363%
due
06/06/24
180
196
3.734%
due
12/15/24
706
783
4.685%
due
12/15/44
8
10
Berkshire
Hathaway
Energy
Co.
4.050%
due
04/15/25
(Þ)
699
791
Series
WI
2.800%
due
01/15/23
245
257
Berkshire
Hathaway
Finance
Corp.
1.450%
due
10/15/30
819
829
4.250%
due
01/15/49
130
172
Berkshire
Hathaway,
Inc.
3.125%
due
03/15/26
694
775
Boardwalk
Pipelines,
LP
4.800%
due
05/03/29
710
813
Boeing
Co.
(The)
4.875%
due
05/01/25
390
444
3.100%
due
05/01/26
20
21
2.700%
due
02/01/27
40
42
2.800%
due
03/01/27
30
31
3.200%
due
03/01/29
120
127
5.150%
due
05/01/30
190
230
3.250%
due
02/01/35
450
461
6.625%
due
02/15/38
656
878
3.550%
due
03/01/38
30
31
5.705%
due
05/01/40
160
207
3.750%
due
02/01/50
60
63
5.805%
due
05/01/50
370
510
Booking
Holdings,
Inc.
4.625%
due
04/13/30
666
827
BP
Capital
Markets
America,
Inc.
3.245%
due
05/06/22
10
10
2.937%
due
04/06/23
10
11
3.216%
due
11/28/23
290
311
3.790%
due
02/06/24
30
33
3.410%
due
02/11/26
200
224
3.119%
due
05/04/26
120
133
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
3.633%
due
04/06/30
80
93
3.000%
due
02/24/50
230
235
Brighthouse
Financial,
Inc.
Series
WI
4.700%
due
06/22/47
348
367
Bristol
Myers
Squibb
Co.
Series
WI
3.900%
due
02/20/28
380
450
Bristol-Myers
Squibb
Co.
Series
WI
2.600%
due
05/16/22
90
93
3.550%
due
08/15/22
30
32
2.900%
due
07/26/24
400
434
3.875%
due
08/15/25
230
263
3.200%
due
06/15/26
190
214
3.400%
due
07/26/29
170
198
5.000%
due
08/15/45
80
116
Broadcom,
Inc.
Series
WI
2.250%
due
11/15/23
180
188
4.700%
due
04/15/25
280
321
3.150%
due
11/15/25
220
240
Brookfield
Finance
LLC
3.450%
due
04/15/50
827
876
Buckeye
Partners,
LP
4.350%
due
10/15/24
167
171
4.125%
due
12/01/27
149
152
5.850%
due
11/15/43
103
101
Bunge,
Ltd.
Finance
Corp.
3.000%
due
09/25/22
531
551
4.350%
due
03/15/24
220
243
Burlington
Northern
Santa
Fe
LLC
3.400%
due
09/01/24
220
241
4.550%
due
09/01/44
461
622
4.150%
due
04/01/45
100
130
Cameron
LNG
LLC
2.902%
due
07/15/31
(Þ)
30
33
3.302%
due
01/15/35
(Þ)
170
192
Cargill,
Inc.
1.375%
due
07/23/23
(Þ)
110
113
Carrier
Global
Corp.
Series
WI
2.700%
due
02/15/31
10
11
3.377%
due
04/05/40
40
44
3.577%
due
04/05/50
20
22
Caterpillar
Financial
Services
Corp.
1.950%
due
11/18/22
761
785
Caterpillar,
Inc.
4.750%
due
05/15/64
603
891
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
4.500%
due
08/15/30
(Þ)
10
11
4.500%
due
05/01/32
(Þ)
290
310
Centene
Corp.
Series
WI
4.625%
due
12/15/29
60
67
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.375%
due
02/15/30
50
53
CF
Industries,
Inc.
3.450%
due
06/01/23
489
510
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
5.050%
due
03/30/29
240
292
5.375%
due
04/01/38
80
100
5.750%
due
04/01/48
350
457
4.800%
due
03/01/50
40
48
Series
WI
4.908%
due
07/23/25
530
616
6.384%
due
10/23/35
20
27
6.484%
due
10/23/45
639
905
6.834%
due
10/23/55
20
30
Cheniere
Corpus
Christi
Holdings
LLC
Series
WI
5.125%
due
06/30/27
719
850
Cheniere
Energy,
Inc.
4.625%
due
10/15/28
(Þ)
60
63
Chevron
Corp.
2.355%
due
12/05/22
784
812
1.554%
due
05/11/25
130
135
2.954%
due
05/16/26
70
78
1.995%
due
05/11/27
50
53
3.078%
due
05/11/50
10
11
Chubb
INA
Holdings,
Inc.
3.350%
due
05/03/26
30
34
Cigna
Corp.
Series
WI
3.750%
due
07/15/23
170
184
4.125%
due
11/15/25
130
150
4.375%
due
10/15/28
460
556
6.125%
due
11/15/41
335
494
Cimarex
Energy
Co.
4.375%
due
06/01/24
10
11
3.900%
due
05/15/27
210
231
4.375%
due
03/15/29
200
228
Cintas
Corp.
No.
2
2.900%
due
04/01/22
60
62
3.700%
due
04/01/27
70
81
CIT
Bank
NA
Series
BKNT
2.969%
due
09/27/25
(SOFR
+
1.715%)(Ê)
812
851
Citigroup,
Inc.
1.678%
due
05/15/24
(SOFR
+
1.667%)(Ê)
130
134
3.106%
due
04/08/26
(SOFR
+
2.750%)(Ê)
100
109
4.450%
due
09/29/27
610
719
4.412%
due
03/31/31
(SOFR
+
3.914%)(Ê)
160
194
2.572%
due
06/03/31
(SOFR
+
2.107%)(Ê)
310
330
8.125%
due
07/15/39
450
803
5.300%
due
05/06/44
101
142
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
87
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.750%
due
05/18/46
220
293
4.650%
due
07/23/48
35
48
Series
9-RG
4.650%
due
07/30/45
147
196
Series
P
5.950%
due
12/31/49
(USD
3
Month
LIBOR
+
3.905%)(Ê)(ƒ)
220
240
Cliffs
Natural
Resources,
Inc.
6.250%
due
10/01/40
112
102
CME
Group,
Inc.
5.300%
due
09/15/43
30
45
Coca-Cola
Co.
(The)
2.950%
due
03/25/25
40
44
3.375%
due
03/25/27
90
103
1.450%
due
06/01/27
130
134
2.500%
due
06/01/40
10
11
2.600%
due
06/01/50
50
53
2.500%
due
03/15/51
60
62
Columbia
Pipeline
Group,
Inc.
Series
WI
5.800%
due
06/01/45
317
432
Comcast
Cable
Communications
Holdings,
Inc.
9.455%
due
11/15/22
583
682
Comcast
Corp.
3.700%
due
04/15/24
260
286
3.100%
due
04/01/25
10
11
3.950%
due
10/15/25
230
264
3.150%
due
03/01/26
80
89
3.300%
due
04/01/27
50
57
4.150%
due
10/15/28
350
421
3.400%
due
04/01/30
70
81
4.250%
due
10/15/30
120
148
6.500%
due
11/15/35
90
139
6.550%
due
07/01/39
200
316
3.250%
due
11/01/39
10
11
3.750%
due
04/01/40
10
12
3.400%
due
07/15/46
20
23
4.000%
due
03/01/48
20
25
4.700%
due
10/15/48
30
42
3.450%
due
02/01/50
110
129
Concho
Resources,
Inc.
3.750%
due
10/01/27
150
171
4.300%
due
08/15/28
90
106
Consolidated
Edison
Co.,
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
57
58
Continental
Resources,
Inc.
4.500%
due
04/15/23
50
52
3.800%
due
06/01/24
60
62
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.900%
due
06/01/44
10
10
Series
WI
4.375%
due
01/15/28
60
61
Costco
Wholesale
Corp.
1.375%
due
06/20/27
200
206
1.600%
due
04/20/30
120
123
Credit
Suisse
Group
AG
2.950%
due
04/09/25
250
274
Crown
Cork
&
Seal
Co.,
Inc.
7.375%
due
12/15/26
133
162
CVS
Health
Corp.
2.750%
due
12/01/22
90
94
3.700%
due
03/09/23
36
39
2.625%
due
08/15/24
200
214
3.625%
due
04/01/27
40
46
4.300%
due
03/25/28
220
262
3.250%
due
08/15/29
200
226
3.750%
due
04/01/30
110
128
4.780%
due
03/25/38
70
88
4.125%
due
04/01/40
40
48
5.125%
due
07/20/45
140
188
5.050%
due
03/25/48
325
440
DAE
Funding
LLC
5.750%
due
11/15/23
(Þ)
20
21
Daimler
Finance
NA
LLC
2.550%
due
08/15/22
(Þ)
792
819
DCP
Midstream
Operating,
LP
6.450%
due
11/03/36
(Þ)
30
32
Deere
&
Co.
3.100%
due
04/15/30
20
23
3.750%
due
04/15/50
150
194
Delhaize
America,
Inc.
9.000%
due
04/15/31
154
247
Dell
International
LLC
/
EMC
Corp.
8.350%
due
07/15/46
(Þ)
617
931
Delta
Air
Lines
Pass-Through
Trust
7.000%
due
05/01/25
(Þ)
1,382
1,595
Series
2002-1
6.718%
due
01/02/23
64
66
Delta
Air
Lines,
Inc.
3.625%
due
03/15/22
287
296
3.800%
due
04/19/23
30
31
2.900%
due
10/28/24
186
184
4.500%
due
10/20/25
(Þ)
90
96
7.375%
due
01/15/26
140
160
4.375%
due
04/19/28
136
137
4.750%
due
10/20/28
(Þ)
90
98
Devon
Energy
Corp.
5.850%
due
12/15/25
440
517
7.875%
due
09/30/31
150
209
5.000%
due
06/15/45
180
212
Diageo
Investment
Corp.
2.875%
due
05/11/22
90
93
7.450%
due
04/15/35
493
810
Diamondback
Energy,
Inc.
3.500%
due
12/01/29
110
117
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
88
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
WI
5.375%
due
05/31/25
30
31
Discover
Bank
Series
BKNT
2.700%
due
02/06/30
815
864
DISH
DBS
Corp.
Series
WI
5.875%
due
11/15/24
150
157
7.750%
due
07/01/26
30
34
Dollar
General
Corp.
3.250%
due
04/15/23
10
11
Dominion
Energy,
Inc.
7.000%
due
06/15/38
20
30
Duke
Energy
Carolinas
LLC
5.300%
due
02/15/40
30
43
4.000%
due
09/30/42
100
123
Eaton
Corp.
2.750%
due
11/02/22
150
157
4.150%
due
11/02/42
40
51
Edison
International
4.125%
due
03/15/28
718
800
EMC
Corp.
3.375%
due
06/01/23
283
297
Enable
Midstream
Partners,
LP
4.150%
due
09/15/29
762
758
Enbridge
Energy
Partners,
LP
7.375%
due
10/15/45
484
738
Energy
Transfer
Operating,
LP
5.875%
due
01/15/24
653
734
4.500%
due
04/15/24
100
109
2.900%
due
05/15/25
30
32
5.250%
due
04/15/29
30
35
3.750%
due
05/15/30
340
367
6.250%
due
04/15/49
30
36
Series
10Y
4.950%
due
06/15/28
40
46
Series
F
6.750%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.134%)(Ê)(ƒ)
90
82
Energy
Transfer
Partners,
LP
/
Regency
Energy
Finance
Corp.
5.000%
due
10/01/22
516
548
EnLink
Midstream
Partners,
LP
4.400%
due
04/01/24
167
165
4.150%
due
06/01/25
207
203
Enterprise
Products
Operating
LLC
3.900%
due
02/15/24
30
33
4.150%
due
10/16/28
310
369
2.800%
due
01/31/30
100
108
7.550%
due
04/15/38
20
30
4.850%
due
03/15/44
20
25
4.200%
due
01/31/50
160
188
3.700%
due
01/31/51
70
77
Series
D
6.875%
due
03/01/33
624
873
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
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
164
4.950%
due
04/15/50
50
68
EPR
Properties
Co.
3.750%
due
08/15/29
291
279
EQM
Midstream
Partners,
LP
4.125%
due
12/01/26
450
453
EQT
Corp.
3.000%
due
10/01/22
178
179
6.125%
due
02/01/25
176
200
3.900%
due
10/01/27
50
50
5.000%
due
01/15/29
10
11
Exelon
Corp.
3.497%
due
06/01/22
245
255
Series
WI
3.950%
due
06/15/25
489
553
Exelon
Generation
Co.
LLC
5.600%
due
06/15/42
615
700
Expedia,
Inc.
Series
WI
3.800%
due
02/15/28
813
873
Exxon
Mobil
Corp.
2.726%
due
03/01/23
778
815
1.571%
due
04/15/23
20
21
2.992%
due
03/19/25
320
350
3.043%
due
03/01/26
60
66
3.482%
due
03/19/30
120
140
4.114%
due
03/01/46
40
50
4.327%
due
03/19/50
10
13
FedEx
Corp.
4.500%
due
02/01/65
226
258
FirstEnergy
Corp.
Series
A
1.600%
due
01/15/26
50
49
Series
B
4.250%
due
03/15/23
100
106
3.900%
due
07/15/27
370
408
Series
C
7.375%
due
11/15/31
550
784
Ford
Holdings
LLC
9.300%
due
03/01/30
140
182
Ford
Motor
Co.
7.450%
due
07/16/31
344
441
4.750%
due
01/15/43
194
198
7.400%
due
11/01/46
113
137
Ford
Motor
Credit
Co.
LLC
3.096%
due
05/04/23
249
252
4.271%
due
01/09/27
169
177
3.815%
due
11/02/27
181
186
5.113%
due
05/03/29
304
339
4.000%
due
11/13/30
200
210
Series
GMTN
4.389%
due
01/08/26
148
155
Fox
Corp.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
89
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
WI
4.709%
due
01/25/29
30
36
5.476%
due
01/25/39
270
370
Freeport-McMoRan,
Inc.
4.550%
due
11/14/24
10
11
4.625%
due
08/01/30
40
44
5.400%
due
11/14/34
10
13
5.450%
due
03/15/43
260
324
Fresenius
Medical
Care
US
Finance
II,
Inc.
5.875%
due
01/31/22
(Þ)
541
570
4.750%
due
10/15/24
(Þ)
110
123
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
13
4.250%
due
04/01/50
60
81
General
Electric
Co.
3.450%
due
05/01/27
20
23
3.625%
due
05/01/30
50
57
4.250%
due
05/01/40
60
71
4.350%
due
05/01/50
60
73
Series
GMTN
6.875%
due
01/10/39
511
752
Series
MTNA
6.750%
due
03/15/32
619
867
General
Motors
Co.
4.875%
due
10/02/23
671
744
5.400%
due
10/02/23
40
45
6.125%
due
10/01/25
100
121
6.250%
due
10/02/43
110
148
General
Motors
Financial
Co.,
Inc.
4.250%
due
05/15/23
10
11
Genworth
Holdings,
Inc.
4.900%
due
08/15/23
246
232
Gilead
Sciences,
Inc.
3.650%
due
03/01/26
90
102
4.750%
due
03/01/46
100
132
GlaxoSmithKline
Capital,
Inc.
2.800%
due
03/18/23
449
473
Glencore
Canada
Corp.
6.200%
due
06/15/35
631
830
Glencore
Funding
LLC
4.125%
due
03/12/24
(Þ)
400
440
4.625%
due
04/29/24
(Þ)
40
45
4.000%
due
03/27/27
(Þ)
220
249
3.875%
due
10/27/27
(Þ)
50
56
GLP
Capital,
LP
/
GLP
Financing
II,
Inc.
5.375%
due
11/01/23
80
87
5.375%
due
04/15/26
653
749
Goldman
Sachs
Capital
I
6.345%
due
02/15/34
185
259
Goldman
Sachs
Group,
Inc.
(The)
3.200%
due
02/23/23
70
74
3.850%
due
07/08/24
150
166
3.500%
due
04/01/25
150
167
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.272%
due
09/29/25
(USD
3
Month
LIBOR
+
1.201%)(Ê)
350
383
4.250%
due
10/21/25
310
355
3.500%
due
11/16/26
90
101
3.691%
due
06/05/28
(USD
3
Month
LIBOR
+
1.510%)(Ê)
200
231
4.223%
due
05/01/29
(USD
3
Month
LIBOR
+
1.301%)(Ê)
50
59
6.750%
due
10/01/37
410
627
4.411%
due
04/23/39
(USD
3
Month
LIBOR
+
1.430%)(Ê)
100
128
6.250%
due
02/01/41
160
250
5.150%
due
05/22/45
160
223
4.750%
due
10/21/45
110
153
4.000%
due
12/29/49
(USD
3
Month
LIBOR
+
0.768%)(Ê)(ƒ)
3
3
Guardian
Life
Global
Funding
1.100%
due
06/23/25
(Þ)
50
51
Halliburton
Co.
3.800%
due
11/15/25
5
6
4.850%
due
11/15/35
130
152
Hanesbrands,
Inc.
4.625%
due
05/15/24
(Þ)
10
10
5.375%
due
05/15/25
(Þ)
80
85
4.875%
due
05/15/26
(Þ)
70
76
Harman
International
Industries,
Inc.
4.150%
due
05/15/25
755
841
HCA,
Inc.
5.000%
due
03/15/24
50
56
5.375%
due
02/01/25
40
45
4.500%
due
02/15/27
40
47
5.625%
due
09/01/28
110
130
5.875%
due
02/01/29
80
96
4.125%
due
06/15/29
269
312
3.500%
due
09/01/30
40
42
5.500%
due
06/15/47
463
618
Hershey
Co.
(The)
0.900%
due
06/01/25
30
30
Hess
Corp.
7.300%
due
08/15/31
657
859
Hilton
Domestic
Operating
Co.,
Inc.
5.375%
due
05/01/25
(Þ)
120
128
5.750%
due
05/01/28
(Þ)
40
44
HollyFrontier
Corp.
5.875%
due
04/01/26
746
833
Home
Depot,
Inc.
(The)
3.250%
due
03/01/22
525
543
2.625%
due
06/01/22
243
251
2.500%
due
04/15/27
80
88
3.900%
due
12/06/28
10
12
2.700%
due
04/15/30
80
89
3.300%
due
04/15/40
110
129
3.900%
due
06/15/47
20
25
3.350%
due
04/15/50
270
321
Honeywell
International,
Inc.
1.350%
due
06/01/25
80
83
Host
Hotels
&
Resorts,
LP
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
90
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.875%
due
04/01/24
790
835
HSBC
Holdings
PLC
7.200%
due
07/15/97
457
777
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
230
4.625%
due
12/01/42
20
26
4.950%
due
10/01/44
20
27
4.800%
due
03/15/47
10
13
Hyatt
Hotels
Corp.
5.375%
due
04/23/25
763
862
4.850%
due
03/15/26
230
258
Intel
Corp.
3.700%
due
07/29/25
20
23
4.600%
due
03/25/40
60
79
4.750%
due
03/25/50
170
237
Series
WI
3.734%
due
12/08/47
10
12
International
Business
Machines
Corp.
3.000%
due
05/15/24
220
238
3.500%
due
05/15/29
215
249
International
Lease
Finance
Corp.
5.875%
due
08/15/22
410
443
Jefferies
Group
LLC
6.500%
due
01/20/43
635
871
Johnson
&
Johnson
3.375%
due
12/05/23
111
121
0.550%
due
09/01/25
70
70
0.950%
due
09/01/27
140
141
4.950%
due
05/15/33
306
428
3.625%
due
03/03/37
70
85
JPMorgan
Chase
&
Co.
1.514%
due
06/01/24
(SOFR
+
1.455%)(Ê)
340
349
3.875%
due
09/10/24
100
112
4.023%
due
12/05/24
(USD
3
Month
LIBOR
+
1.000%)(Ê)
220
242
2.083%
due
04/22/26
(SOFR
+
1.850%)(Ê)
210
222
4.125%
due
12/15/26
230
269
4.250%
due
10/01/27
30
36
4.203%
due
07/23/29
(USD
3
Month
LIBOR
+
1.260%)(Ê)
200
239
4.452%
due
12/05/29
(USD
3
Month
LIBOR
+
1.330%)(Ê)
260
317
8.750%
due
09/01/30
280
417
2.522%
due
04/22/31
(SOFR
+
2.040%)(Ê)
120
129
4.950%
due
06/01/45
100
142
3.109%
due
04/22/51
(SOFR
+
2.440%)(Ê)
50
56
Kinder
Morgan
Energy
Partners,
LP
6.550%
due
09/15/40
600
783
5.500%
due
03/01/44
20
25
Kinder
Morgan,
Inc.
4.300%
due
06/01/25
80
91
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.300%
due
03/01/28
170
199
5.300%
due
12/01/34
690
850
5.550%
due
06/01/45
80
103
5.050%
due
02/15/46
30
37
5.200%
due
03/01/48
10
13
Series
GMTN
7.800%
due
08/01/31
176
252
KKR
Group
Finance
Co.
II
LLC
5.500%
due
02/01/43
(Þ)
10
13
Kraft
Heinz
Foods
Co.
4.625%
due
01/30/29
168
192
4.250%
due
03/01/31
(Þ)
30
33
6.875%
due
01/26/39
210
291
5.000%
due
06/04/42
272
319
4.875%
due
10/01/49
(Þ)
261
304
5.500%
due
06/01/50
(Þ)
80
101
Series
WI
3.950%
due
07/15/25
13
14
3.000%
due
06/01/26
319
333
5.000%
due
07/15/35
283
343
5.200%
due
07/15/45
287
341
4.375%
due
06/01/46
340
367
Kroger
Co.
(The)
3.850%
due
08/01/23
750
808
5.150%
due
08/01/43
20
27
L3Harris
Technologies,
Inc.
4.854%
due
04/27/35
40
52
5.054%
due
04/27/45
40
55
Lamb
Weston
Holdings,
Inc.
4.875%
due
11/01/26
(Þ)
60
63
4.875%
due
05/15/28
(Þ)
10
11
Las
Vegas
Sands
Corp.
3.200%
due
08/08/24
922
977
2.900%
due
06/25/25
20
21
Legg
Mason,
Inc.
5.625%
due
01/15/44
586
840
Lennar
Corp.
4.500%
due
04/30/24
40
44
Series
WI
5.000%
due
06/15/27
10
12
4.750%
due
11/29/27
100
118
Levi
Strauss
&
Co.
Series
WI
5.000%
due
05/01/25
70
72
Liberty
Interactive
LLC
8.250%
due
02/01/30
81
91
Lockheed
Martin
Corp.
3.100%
due
01/15/23
702
738
4.500%
due
05/15/36
10
13
Series
10YR
3.550%
due
01/15/26
90
102
Loews
Corp.
6.000%
due
02/01/35
601
819
Lowe's
Cos.,
Inc.
4.500%
due
04/15/30
50
62
Lubrizol
Corp.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
6.500%
due
10/01/34
215
332
Macy's
Retail
Holdings,
Inc.
3.625%
due
06/01/24
200
190
Magellan
Health,
Inc.
Series
0005
4.900%
due
09/22/24
176
185
Main
Street
Capital
Corp.
5.200%
due
05/01/24
728
789
Marathon
Petroleum
Corp.
5.000%
due
09/15/54
234
264
Markel
Corp.
4.300%
due
11/01/47
699
883
Marriott
International,
Inc.
Series
R
3.125%
due
06/15/26
841
897
Mars,
Inc.
2.700%
due
04/01/25
(Þ)
60
65
3.200%
due
04/01/30
(Þ)
30
34
Mastercard
,
Inc.
3.850%
due
03/26/50
20
26
Mattel,
Inc.
6.200%
due
10/01/40
113
132
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
70
80
3.500%
due
03/01/27
70
80
3.500%
due
07/01/27
60
69
3.800%
due
04/01/28
200
234
3.600%
due
07/01/30
70
82
3.625%
due
09/01/49
10
12
4.200%
due
04/01/50
140
180
MDC
Holdings,
Inc.
6.000%
due
01/15/43
30
40
Medtronic,
Inc.
Series
WI
3.500%
due
03/15/25
47
53
Merck
&
Co.,
Inc.
0.750%
due
02/24/26
140
142
1.450%
due
06/24/30
70
71
MetLife,
Inc.
6.400%
due
12/15/36
100
129
Micron
Technology,
Inc.
2.497%
due
04/24/23
110
115
Microsoft
Corp.
2.875%
due
02/06/24
180
193
2.700%
due
02/12/25
40
43
2.400%
due
08/08/26
200
218
3.300%
due
02/06/27
810
923
4.100%
due
02/06/37
126
165
2.525%
due
06/01/50
174
183
MidAmerican
Energy
Co.
3.700%
due
09/15/23
237
256
4.400%
due
10/15/44
627
812
Midwest
Connector
Capital
Co.
LLC
3.625%
due
04/01/22
(Þ)
267
272
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.900%
due
04/01/24
(Þ)
769
788
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets,
Ltd.
6.500%
due
06/20/27
(Þ)
120
129
Mondelez
International,
Inc.
2.125%
due
04/13/23
40
42
1.500%
due
05/04/25
260
269
Morgan
Stanley
3.737%
due
04/24/24
(USD
3
Month
LIBOR
+
0.847%)(Ê)
170
183
2.188%
due
04/28/26
(SOFR
+
1.990%)(Ê)
340
359
3.622%
due
04/01/31
(SOFR
+
3.120%)(Ê)
390
453
Series
GMTN
3.772%
due
01/24/29
(USD
3
Month
LIBOR
+
1.140%)(Ê)
20
23
4.431%
due
01/23/30
(USD
3
Month
LIBOR
+
1.628%)(Ê)
10
12
2.699%
due
01/22/31
(SOFR
+
1.143%)(Ê)
50
54
MPLX,
LP
4.000%
due
03/15/28
40
46
4.800%
due
02/15/29
170
205
4.500%
due
04/15/38
80
91
4.700%
due
04/15/48
140
166
5.500%
due
02/15/49
60
79
Series
WI
4.500%
due
07/15/23
100
109
4.875%
due
06/01/25
40
46
National
Fuel
Gas
Co.
5.500%
due
01/15/26
743
857
National
Oilwell
Varco,
Inc.
3.600%
due
12/01/29
843
881
National
Securities
Clearing
Corp.
1.200%
due
04/23/23
(Þ)
250
255
Navient
Corp.
7.250%
due
01/25/22
129
135
Series
MTN
5.625%
due
08/01/33
120
115
Nestle
Holdings,
Inc.
3.350%
due
09/24/23
(Þ)
698
752
Nevada
Power
Co.
5.450%
due
05/15/41
208
280
Series
R
6.750%
due
07/01/37
362
549
New
York
Life
Global
Funding
0.950%
due
06/24/25
(Þ)
90
91
Newell
Brands,
Inc.
3.850%
due
04/01/23
40
42
4.200%
due
04/01/26
495
545
5.500%
due
04/01/46
67
85
NGPL
PipeCo
LLC
7.768%
due
12/15/37
(Þ)
553
747
NIKE,
Inc.
2.400%
due
03/27/25
60
65
2.750%
due
03/27/27
100
111
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
2.850%
due
03/27/30
110
125
3.250%
due
03/27/40
50
58
3.375%
due
03/27/50
160
196
Noble
Energy,
Inc.
3.900%
due
11/15/24
250
279
3.850%
due
01/15/28
130
151
5.250%
due
11/15/43
10
14
4.950%
due
08/15/47
40
57
Northern
Natural
Gas
Co.
4.300%
due
01/15/49
(Þ)
631
766
Northrop
Grumman
Corp.
2.930%
due
01/15/25
80
87
5.250%
due
05/01/50
90
133
Series
F0TZ
3.250%
due
01/15/28
310
350
Novartis
Capital
Corp.
2.400%
due
05/17/22
719
739
NVIDIA
Corp.
2.850%
due
04/01/30
60
67
3.500%
due
04/01/40
160
192
3.500%
due
04/01/50
440
533
3.700%
due
04/01/60
110
141
NXP
BV
/
NXP
Funding
LLC
/
NXP,
Inc.
2.700%
due
05/01/25
(Þ)
80
86
Occidental
Petroleum
Corp.
6.950%
due
07/01/24
10
11
2.900%
due
08/15/24
480
462
5.550%
due
03/15/26
110
115
3.400%
due
04/15/26
239
228
3.000%
due
02/15/27
621
553
3.500%
due
08/15/29
60
55
7.500%
due
05/01/31
188
210
7.875%
due
09/15/31
30
33
6.450%
due
09/15/36
127
133
4.300%
due
08/15/39
84
71
6.200%
due
03/15/40
116
115
4.500%
due
07/15/44
125
106
4.625%
due
06/15/45
177
154
4.400%
due
04/15/46
618
538
4.100%
due
02/15/47
190
155
4.200%
due
03/15/48
70
57
4.400%
due
08/15/49
109
92
Oceaneering
International,
Inc.
6.000%
due
02/01/28
144
129
Omega
Healthcare
Investors,
Inc.
3.375%
due
02/01/31
916
961
ONEOK,
Inc.
7.500%
due
09/01/23
204
236
4.350%
due
03/15/29
506
574
6.125%
due
02/01/41
614
737
Oracle
Corp.
4.300%
due
07/08/34
648
820
Otis
Worldwide
Corp.
Series
WI
2.056%
due
04/05/25
60
64
Pacific
Gas
and
Electric
Co.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.750%
due
06/16/22
180
181
2.100%
due
08/01/27
50
51
2.500%
due
02/01/31
60
60
3.300%
due
08/01/40
20
20
3.500%
due
08/01/50
30
30
PacifiCorp
5.750%
due
04/01/37
543
772
Parsley
Energy
LLC
4.125%
due
02/15/28
(Þ)
10
11
Parsley
Energy
LLC
/
Parsley
Finance
Corp.
5.375%
due
01/15/25
(Þ)
20
21
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
231
0.750%
due
05/01/23
503
510
2.250%
due
03/19/25
20
21
2.625%
due
03/19/27
10
11
1.625%
due
05/01/30
110
113
2.875%
due
10/15/49
40
45
3.625%
due
03/19/50
20
25
3.875%
due
03/19/60
30
40
Petrobras
Global
Finance
BV
6.250%
due
03/17/24
100
114
Pfizer,
Inc.
0.800%
due
05/28/25
170
173
2.625%
due
04/01/30
110
123
1.700%
due
05/28/30
110
114
Philip
Morris
International,
Inc.
2.500%
due
08/22/22
90
93
1.125%
due
05/01/23
80
82
2.100%
due
05/01/30
70
73
4.500%
due
03/20/42
40
51
Series
5YR
2.500%
due
11/02/22
60
62
Series
NCD
2.375%
due
08/17/22
210
217
Phillips
66
5.875%
due
05/01/42
671
931
Plains
All
American
Pipeline,
LP/
PAA
Finance
Corp.
4.900%
due
02/15/45
836
886
Precision
Castparts
Corp.
2.500%
due
01/15/23
240
249
3.900%
due
01/15/43
457
533
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
5.250%
due
04/15/24
(Þ)
70
75
5.750%
due
04/15/26
(Þ)
60
66
Principal
Life
Global
Funding
II
1.250%
due
06/23/25
(Þ)
40
41
Procter
&
Gamble
Co.
(The)
2.800%
due
03/25/27
20
22
3.000%
due
03/25/30
60
69
Progress
Energy,
Inc.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
7.000%
due
10/30/31
559
797
Prudential
Financial,
Inc.
5.625%
due
06/15/43
(USD
3
Month
LIBOR
+
3.920%)(Ê)
734
787
PSEG
Power
LLC
8.625%
due
04/15/31
170
259
Range
Resources
Corp.
5.875%
due
07/01/22
12
12
Series
WI
4.875%
due
05/15/25
230
217
Raytheon
Technologies
Corp.
3.650%
due
08/16/23
3
3
3.950%
due
08/16/25
30
34
4.125%
due
11/16/28
100
119
2.250%
due
07/01/30
110
117
4.500%
due
06/01/42
20
26
Series
WI
3.200%
due
03/15/24
708
765
3.150%
due
12/15/24
50
54
Regency
Energy
Partners,
LP
/
Regency
Energy
Finance
Corp.
5.875%
due
03/01/22
60
63
Republic
Services,
Inc.
2.500%
due
08/15/24
60
64
Resorts
World
Las
Vegas
LLC
/
RWLV
Capital,
Inc.
4.625%
due
04/16/29
(Þ)
809
831
Reynolds
American,
Inc.
5.850%
due
08/15/45
70
89
Roche
Holdings,
Inc.
1.750%
due
01/28/22
(Þ)
669
679
Rockies
Express
Pipeline
LLC
4.950%
due
07/15/29
(Þ)
81
84
4.800%
due
05/15/30
(Þ)
306
312
Royal
Caribbean
Cruises,
Ltd.
7.500%
due
10/15/27
138
150
Sabal
Trail
Transmission
LLC
4.246%
due
05/01/28
(Þ)
663
760
Safeway,
Inc.
7.250%
due
02/01/31
92
108
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
860
Sasol
Financing
International,
Ltd.
4.500%
due
11/14/22
204
208
SBA
Tower
Trust
2.328%
due
01/15/28
(Þ)
1,025
1,032
Schlumberger
Holdings
Corp.
4.000%
due
12/21/25
(Þ)
40
45
Seagate
HDD
Cayman
5.750%
due
12/01/34
713
840
Service
Properties
Trust
5.000%
due
08/15/22
233
237
4.375%
due
02/15/30
394
384
Sierra
Pacific
Power
Co.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
WI
2.600%
due
05/01/26
718
779
Simon
Property
Group,
LP
4.250%
due
10/01/44
763
879
Solar
Star
Funding
LLC
5.375%
due
06/30/35
(Þ)
632
698
Southern
Company
Gas
Capital
Corp.
6.000%
due
10/01/34
196
269
Southern
Copper
Corp.
6.750%
due
04/16/40
10
15
5.250%
due
11/08/42
380
509
Southwest
Airlines
Co.
5.250%
due
05/04/25
759
879
Southwestern
Energy
Co.
6.200%
due
01/23/25
269
279
Spectra
Energy
Partners,
LP
4.750%
due
03/15/24
671
749
Spirit
AeroSystems
,
Inc.
3.950%
due
06/15/23
31
30
4.600%
due
06/15/28
158
156
Spirit
Realty,
LP
3.400%
due
01/15/30
811
879
Sprint
Capital
Corp.
6.875%
due
11/15/28
256
338
8.750%
due
03/15/32
540
855
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
3.360%
due
03/20/23
(Þ)
38
38
4.738%
due
09/20/29
(Þ)
240
260
Sunoco
Logistics
Partners
Operations,
LP
3.450%
due
01/15/23
420
438
4.250%
due
04/01/24
269
291
5.300%
due
04/01/44
10
11
Synchrony
Financial
3.950%
due
12/01/27
793
889
Sysco
Corp.
2.400%
due
02/15/30
734
763
Tanger
Properties
Ltd.
Partnership
3.875%
due
07/15/27
925
967
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
4.250%
due
11/15/23
20
20
5.875%
due
04/15/26
10
11
5.375%
due
02/01/27
10
11
5.500%
due
03/01/30
30
33
4.875%
due
02/01/31
(Þ)
50
54
Target
Corp.
2.250%
due
04/15/25
120
129
Teachers
Insurance
&
Annuity
Association
of
America
4.900%
due
09/15/44
(Þ)
340
460
Tennessee
Gas
Pipeline
Co.
LLC
2.900%
due
03/01/30
(Þ)
210
224
7.625%
due
04/01/37
608
860
Texas
Instruments,
Inc.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
1.750%
due
05/04/30
70
73
Thermo
Fisher
Scientific,
Inc.
3.000%
due
04/15/23
706
745
Time
Warner
Cable
LLC
7.300%
due
07/01/38
30
44
6.750%
due
06/15/39
20
28
5.500%
due
09/01/41
666
855
Time
Warner
Entertainment
Co.,
LP
8.375%
due
03/15/23
782
913
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
541
3.750%
due
04/15/27
(Þ)
30
34
3.875%
due
04/15/30
(Þ)
300
347
2.550%
due
02/15/31
(Þ)
784
823
Toll
Brothers
Finance
Corp.
4.375%
due
04/15/23
30
32
Transcontinental
Gas
Pipe
Line
Co.
LLC
Series
WI
7.850%
due
02/01/26
220
288
TransDigm
,
Inc.
8.000%
due
12/15/25
(Þ)
20
22
6.250%
due
03/15/26
(Þ)
80
85
TWDC
Enterprises
18
Corp.
2.350%
due
12/01/22
240
249
Series
MTNB
7.000%
due
03/01/32
552
826
Tyson
Foods,
Inc.
4.500%
due
06/15/22
518
543
Unilever
Capital
Corp.
2.200%
due
05/05/22
504
516
Union
Pacific
Corp.
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
133
Series
WI
3.839%
due
03/20/60
140
173
United
Rentals
NA,
Inc.
3.875%
due
11/15/27
10
10
4.875%
due
01/15/28
30
32
5.250%
due
01/15/30
130
144
3.875%
due
02/15/31
120
126
United
States
Steel
Corp.
6.650%
due
06/01/37
132
111
UnitedHealth
Group,
Inc.
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
134
5.700%
due
10/15/40
60
90
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.250%
due
06/15/48
30
40
4.450%
due
12/15/48
30
41
3.700%
due
08/15/49
160
200
3.875%
due
08/15/59
679
877
3.125%
due
05/15/60
20
23
Unum
Group
5.750%
due
08/15/42
796
964
Upjohn,
Inc.
4.000%
due
06/22/50
(Þ)
729
834
US
Bancorp
1.450%
due
05/12/25
260
270
USAA
Capital
Corp.
2.125%
due
05/01/30
(Þ)
150
158
Valero
Energy
Corp.
10.500%
due
03/15/39
488
842
Verizon
Communications,
Inc.
3.500%
due
11/01/24
20
22
0.850%
due
11/20/25
30
30
2.625%
due
08/15/26
70
77
4.125%
due
03/16/27
40
47
3.000%
due
03/22/27
40
44
3.875%
due
02/08/29
120
141
3.150%
due
03/22/30
90
101
7.750%
due
12/01/30
100
154
1.750%
due
01/20/31
100
99
4.500%
due
08/10/33
1,086
1,368
5.250%
due
03/16/37
80
109
2.650%
due
11/20/40
230
232
3.850%
due
11/01/42
20
24
4.125%
due
08/15/46
60
74
5.500%
due
03/16/47
10
15
4.000%
due
03/22/50
40
48
2.875%
due
11/20/50
330
332
Series
WI
3.376%
due
02/15/25
248
275
4.329%
due
09/21/28
123
148
4.862%
due
08/21/46
50
67
ViacomCBS
,
Inc.
3.875%
due
04/01/24
20
22
Visa,
Inc.
3.150%
due
12/14/25
150
168
4.300%
due
12/14/45
490
670
Vistra
Operations
Co.
LLC
4.300%
due
07/15/29
(Þ)
708
803
VOC
Escrow,
Ltd.
5.000%
due
02/15/28
(Þ)
60
60
Volkswagen
Group
of
America
Finance
LLC
2.900%
due
05/13/22
(Þ)
782
807
Vornado
Realty
Trust
3.500%
due
01/15/25
615
651
Voya
Financial,
Inc.
5.650%
due
05/15/53
(USD
3
Month
LIBOR
+
3.580%)(Ê)
789
836
Walmart,
Inc.
3.400%
due
06/26/23
40
43
3.550%
due
06/26/25
40
45
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
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
$
3.050%
due
07/08/26
711
800
3.700%
due
06/26/28
230
271
Walt
Disney
Co.
(The)
Series
WI
6.650%
due
11/15/37
40
63
Washington
Prime
Group,
LP
6.450%
due
08/15/24
189
113
Waste
Management,
Inc.
3.500%
due
05/15/24
190
208
4.150%
due
07/15/49
40
53
Wells
Fargo
&
Co.
1.444%
due
10/31/23
(USD
3
Month
LIBOR
+
1.230%)(Ê)
200
203
3.750%
due
01/24/24
535
584
3.000%
due
04/22/26
400
440
2.188%
due
04/30/26
(SOFR
+
2.000%)(Ê)
230
242
3.000%
due
10/23/26
260
288
4.150%
due
01/24/29
545
647
2.879%
due
10/30/30
(USD
3
Month
LIBOR
+
1.170%)(Ê)
180
196
4.478%
due
04/04/31
(USD
3
Month
LIBOR
+
3.770%)(Ê)
80
98
5.375%
due
11/02/43
200
278
4.650%
due
11/04/44
10
13
3.900%
due
05/01/45
666
831
4.400%
due
06/14/46
230
288
4.750%
due
12/07/46
430
562
5.013%
due
04/04/51
(USD
3
Month
LIBOR
+
4.240%)(Ê)
860
1,221
Series
GMTN
4.900%
due
11/17/45
250
333
Western
Midstream
Operating,
LP
2.074%
due
01/13/23
(USD
3
Month
LIBOR
+
1.850%)(Ê)
40
39
3.100%
due
02/01/25
90
93
4.650%
due
07/01/26
40
42
4.500%
due
03/01/28
50
52
4.050%
due
02/01/30
250
278
5.300%
due
03/01/48
417
413
5.250%
due
02/01/50
60
66
Williams
Cos.,
Inc.
(The)
3.750%
due
06/15/27
60
68
7.750%
due
06/15/31
130
175
8.750%
due
03/15/32
517
756
5.800%
due
11/15/43
155
202
Series
A
7.500%
due
01/15/31
80
109
WPX
Energy,
Inc.
5.250%
due
10/15/27
30
32
5.875%
due
06/15/28
20
22
Wyndham
Destinations,
Inc.
5.750%
due
04/01/27
256
287
Xerox
Corp.
4.800%
due
03/01/35
177
178
Yum!
Brands,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.875%
due
11/01/23
280
293
217,246
International
Debt
-
10.4%
1011778
B.C.
Unlimited
Liability
Co.
/
New
Red
Finance,
Inc.
4.250%
due
05/15/24
(Þ)
62
63
3.500%
due
02/15/29
(Þ)
60
60
1011778
B.C.
Unlimited
Liability
Co.
Term
Loan
B4
1.897%
due
11/19/26
(USD
1
Month
LIBOR
+
1.750%)(Ê)
359
353
Abu
Dhabi
Government
International
Bond
2.500%
due
10/11/22
(Þ)
200
207
3.875%
due
04/16/50
(Þ)
520
634
Adani
Abbot
Point
Terminal
Pty,
Ltd.
4.450%
due
12/15/22
(Þ)
253
240
Adani
Ports
and
Special
Economic
Zone,
Ltd.
4.375%
due
07/03/29
(Þ)
811
879
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
4.450%
due
04/03/26
872
979
Altrice
France
SA
Term
Loan
B12
3.840%
due
01/31/26
(USD
1
Month
LIBOR
+
3.688%)(Ê)
65
64
America
Movil
SAB
de
CV
3.125%
due
07/16/22
750
778
Anglo
American
Capital
PLC
3.625%
due
09/11/24
(Þ)
200
218
5.375%
due
04/01/25
(Þ)
712
833
AP
Moller
-
Maersk
A/S
4.500%
due
06/20/29
(Þ)
767
897
ArcelorMittal
SA
3.600%
due
07/16/24
120
129
4.550%
due
03/11/26
50
56
Argentine
Republic
Government
International
Bond
1.000%
due
07/09/29
34
15
0.500%
due
07/09/30
(~)(Ê)
388
157
1.125%
due
07/09/35
(~)(Ê)
310
113
2.500%
due
07/09/41
(~)(Ê)
160
60
Banco
de
Bogota
SA
Series
EMTQ
4.375%
due
08/03/27
(Þ)
686
755
Banco
de
Credito
del
Peru
4.250%
due
04/01/23
(Þ)
693
740
Banco
Inbursa
SA
Institucion
de
Banca
Multiple
4.125%
due
06/06/24
(Þ)
711
765
Banco
Santander
Chile
3.875%
due
09/20/22
(Þ)
838
885
Banco
Santander
SA
3.848%
due
04/12/23
200
215
2.706%
due
06/27/24
400
427
2.746%
due
05/28/25
400
427
5.179%
due
11/19/25
705
826
Bangkok
Bank
PCL
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
96
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.875%
due
09/27/22
(Þ)
219
230
Banistmo
SA
Series
MTQ0
3.650%
due
09/19/22
(Þ)
729
749
Bank
of
Montreal
1.850%
due
05/01/25
230
241
4.338%
due
10/05/28
736
805
3.803%
due
12/15/32
20
23
Bank
of
Nova
Scotia
(The)
2.375%
due
01/18/23
778
810
1.300%
due
06/11/25
130
133
Barclays
PLC
1.700%
due
05/12/22
200
204
4.972%
due
05/16/29
400
480
5.088%
due
06/20/30
200
240
4.950%
due
01/10/47
660
900
Bausch
Health
Americas,
Inc.
Term
Loan
B
3.151%
due
06/01/25
(USD
1
Month
LIBOR
+
3.000%)(Ê)
74
74
Bausch
Health
Cos.,
Inc.
6.250%
due
02/15/29
(Þ)
130
141
7.250%
due
05/30/29
(Þ)
50
56
Bharti
Airtel
International
Netherlands
BV
5.125%
due
03/11/23
(Þ)
693
739
BHP
Billiton
Finance
USA,
Ltd.
2.875%
due
02/24/22
5
5
5.000%
due
09/30/43
170
250
BNP
Paribas
SA
4.705%
due
01/10/25
(USD
3
Month
LIBOR
+
2.235%)(Ê)(Þ)
260
289
2.219%
due
06/09/26
(SOFR
+
2.074%)(Ê)(Þ)
200
209
4.625%
due
03/13/27
(Þ)
722
842
4.400%
due
08/14/28
(Þ)
200
237
Brazil
Government
International
Bond
2.625%
due
01/05/23
220
228
4.625%
due
01/13/28
990
1,108
5.625%
due
01/07/41
170
201
5.000%
due
01/27/45
350
389
British
Telecommunications
PLC
9.625%
due
12/15/30
30
50
Canadian
Imperial
Bank
of
Commerce
0.950%
due
06/23/23
120
122
2.606%
due
07/22/23
(USD
3
Month
LIBOR
+
0.785%)(Ê)
308
319
Canadian
Natural
Resources,
Ltd.
5.850%
due
02/01/35
661
832
Carnival
Corp.
11.500%
due
04/01/23
(Þ)
513
593
Celulosa
Arauco
y
Constitucion
SA
Series
WI
3.875%
due
11/02/27
705
777
Cenovus
Energy,
Inc.
6.750%
due
11/15/39
110
145
Series
WI
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.250%
due
06/15/37
60
68
5.400%
due
06/15/47
124
145
CNOOC
Finance
USA
LLC
3.500%
due
05/05/25
550
592
Colombia
Government
International
Bond
5.625%
due
02/26/44
270
350
Commerzbank
AG
8.125%
due
09/19/23
(Þ)
174
203
Cooperatieve
Rabobank
UA
4.625%
due
12/01/23
250
279
4.375%
due
08/04/25
900
1,027
Credit
Agricole
SA
4.375%
due
03/17/25
(Þ)
734
824
1.907%
due
06/16/26
(SOFR
+
1.676%)(Ê)(Þ)
250
259
Credit
Suisse
Group
AG
2.193%
due
06/05/26
(Þ)
330
345
4.282%
due
01/09/28
(Þ)
699
807
4.194%
due
04/01/31
(Þ)
250
294
Danone
SA
2.589%
due
11/02/23
(Þ)
718
755
Danske
Bank
A/S
5.000%
due
01/12/22
(Þ)
400
418
3.875%
due
09/12/23
(Þ)
200
215
5.375%
due
01/12/24
(Þ)
862
973
1.226%
due
06/22/24
(Þ)
200
203
Deutsche
Bank
AG
4.500%
due
04/01/25
238
258
4.296%
due
05/24/28
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
2.248%)(Ê)
180
185
DH
Europe
Finance
II
SARL
3.400%
due
11/15/49
684
811
DP
World
PLC
5.625%
due
09/25/48
(Þ)
200
255
Ecopetrol
SA
5.375%
due
06/26/26
60
69
5.875%
due
05/28/45
350
424
Electricite
de
France
SA
5.250%
due
01/29/49
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
10
Year
Rate
+
3.709%)(Ê)
(ƒ)(Þ)
496
526
6.000%
due
01/22/14
(Þ)
614
886
Enbridge,
Inc.
3.700%
due
07/15/27
687
783
ENEL
Finance
International
NV
Series
658A
3.500%
due
04/06/28
(Þ)
706
804
Enel
SpA
8.750%
due
09/24/73
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
5.880%)(Ê)(Þ)
679
793
Eni
SpA
4.250%
due
05/09/29
(Þ)
658
779
Equate
Petrochemical
BV
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
97
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.250%
due
11/03/26
(Þ)
200
223
Fairfax
Financial
Holdings,
Ltd.
Series
WI
4.850%
due
04/17/28
810
906
Four
Seasons
Hotels,
Ltd.
1st
Lien
Term
Loan
2.147%
due
11/30/23
(USD
1
Month
LIBOR
+
2.000%)(Ê)
138
137
Froneri
International,
Ltd.
Term
Loan
2.397%
due
01/31/27
(USD
1
Month
LIBOR
+
2.250%)(Ê)
119
118
Garda
World
Security
Corp.
2019
1ST
Lien
Term
Loan
B
4.900%
due
10/30/26
(USD
1
Month
LIBOR
+
4.750%)(Ê)
69
69
Gazprom
PJSC
Via
Gaz
Capital
SA
6.510%
due
03/07/22
(Þ)
672
713
GE
Capital
International
Funding
Co.,
Unlimited
Co.
Series
WI
3.373%
due
11/15/25
764
850
4.418%
due
11/15/35
600
715
GFL
Environmental,
Inc.
4.250%
due
06/01/25
(Þ)
70
73
GFL
Environmental,
Inc.
1st
Lien
Term
Loan
B
4.000%
due
05/31/25
(USD
3
Month
LIBOR
+
3.000%)(Ê)
15
15
GlaxoSmithKline
Capital
PLC
2.850%
due
05/08/22
256
264
2.875%
due
06/01/22
510
528
Glencore
Finance
Canada,
Ltd.
6.000%
due
11/15/41
(Þ)
667
845
Grifols
Worldwide
Operations
USA,
Inc.
Term
Loan
B
2.100%
due
11/15/27
(USD
1
Week
LIBOR
+
2.000%)(Ê)
277
275
Heineken
NV
3.400%
due
04/01/22
(Þ)
710
735
HSBC
Bank
PLC
7.650%
due
05/01/25
375
466
HSBC
Holdings
PLC
3.900%
due
05/25/26
220
251
2.099%
due
06/04/26
(SOFR
+
1.929%)(Ê)
200
208
4.041%
due
03/13/28
(USD
3
Month
LIBOR
+
1.546%)(Ê)
410
468
3.973%
due
05/22/30
(USD
3
Month
LIBOR
+
1.610%)(Ê)
200
231
5.250%
due
03/14/44
609
850
ICICI
Bank,
Ltd.
4.000%
due
03/18/26
(Þ)
782
852
Indonesia
Government
International
Bond
3.500%
due
01/11/28
210
235
4.350%
due
01/11/48
240
286
3.700%
due
10/30/49
540
589
Series
REGS
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.750%
due
04/25/22
430
447
Innogy
Finance
BV
6.650%
due
04/30/38
(Þ)
621
925
Intesa
Sanpaolo
SpA
3.125%
due
07/14/22
(Þ)
400
414
3.375%
due
01/12/23
(Þ)
200
209
5.017%
due
06/26/24
(Þ)
292
319
3.875%
due
01/12/28
(Þ)
846
933
Israel
Government
International
Bond
2.750%
due
07/03/30
200
221
KazMunayGas
National
Co.
JSC
5.375%
due
04/24/30
(Þ)
200
247
Kuwait
Government
International
Bond
3.500%
due
03/20/27
(Þ)
210
239
Lloyds
Bank
PLC
12.000%
due
12/29/49
(Þ)
681
786
Lloyds
Banking
Group
PLC
4.050%
due
08/16/23
742
811
4.375%
due
03/22/28
200
238
4.550%
due
08/16/28
400
482
6.657%
due
12/29/49
(Þ)
108
137
Lukoil
International
Finance
BV
4.563%
due
04/24/23
(Þ)
682
732
MA
Finance
Co.
LLC
Term
Loan
B
2.896%
due
06/21/24
(USD
1
Month
LIBOR
+
2.750%)(Ê)
4
4
Marks
&
Spencer
PLC
7.125%
due
12/01/37
(Þ)
170
189
Methanex
Corp.
5.250%
due
12/15/29
221
240
Mexico
Government
International
Bond
6.050%
due
01/11/40
30
40
4.750%
due
03/08/44
20
24
4.350%
due
01/15/47
610
695
Mitsubishi
UFJ
Financial
Group,
Inc.
2.998%
due
02/22/22
534
550
National
Bank
of
Canada
2.150%
due
10/07/22
(Þ)
780
804
Natwest
Group
PLC
3.875%
due
09/12/23
200
217
5.125%
due
05/28/24
420
474
4.519%
due
06/25/24
200
218
4.269%
due
03/22/25
200
221
7.648%
due
12/31/49
136
207
NBK
SPC,
Ltd.
2.750%
due
05/30/22
(Þ)
714
732
Nissan
Motor
Acceptance
Corp.
3.522%
due
09/17/25
(Þ)
280
300
4.345%
due
09/17/27
(Þ)
300
331
Nutrien
Ltd.
5.875%
due
12/01/36
627
844
Panama
Government
International
Bond
2.252%
due
09/29/32
260
268
Panther
BF
Aggregator,
LP
Term
Loan
B
3.647%
due
04/30/26
(USD
1
Month
LIBOR
+
3.500%)(Ê)
310
309
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
98
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Park
Aerospace
Holdings,
Ltd.
5.250%
due
08/15/22
(Þ)
4
4
Peruvian
Government
International
Bond
2.783%
due
01/23/31
130
143
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
1,715
1,937
Petroleos
Mexicanos
6.625%
due
06/15/35
10
10
Series
WI
4.625%
due
09/21/23
100
104
6.875%
due
08/04/26
220
240
Prosus
NV
4.850%
due
07/06/27
(Þ)
250
287
Provincia
de
Buenos
Aires
6.500%
due
02/15/23
(~)(Ê)(Þ)
140
57
Qatar
Government
International
Bond
4.817%
due
03/14/49
(Þ)
210
287
4.400%
due
04/16/50
(Þ)
360
469
Reliance
Industries,
Ltd.
5.400%
due
02/14/22
684
716
RESIMAC
Premier
1.274%
due
02/07/52
(Þ)
912
912
Royal
Bank
of
Canada
1.150%
due
06/10/25
120
123
Series
GMTN
1.600%
due
04/17/23
200
206
Royal
Caribbean
Cruises,
Ltd.
5.250%
due
11/15/22
46
46
11.500%
due
06/01/25
(Þ)
337
394
SABIC
Capital
II
BV
4.000%
due
10/10/23
(Þ)
737
794
Sands
China,
Ltd.
3.800%
due
01/08/26
(Þ)
200
213
Series
WI
5.125%
due
08/08/25
1,012
1,135
Santander
UK
Group
Holdings
PLC
5.000%
due
11/07/23
(Þ)
238
263
Class
N
4.750%
due
09/15/25
(Þ)
701
790
Saudi
Arabian
Oil
Co.
2.875%
due
04/16/24
(Þ)
768
815
Schneider
Electric
SE
2.950%
due
09/27/22
(Þ)
800
835
Shell
International
Finance
BV
2.875%
due
05/10/26
40
44
2.750%
due
04/06/30
100
110
4.375%
due
05/11/45
320
421
4.000%
due
05/10/46
80
101
3.250%
due
04/06/50
230
260
Siemens
Financieringsmaatschappij
NV
2.700%
due
03/16/22
(Þ)
769
790
Societe
Generale
SA
5.000%
due
01/17/24
(Þ)
700
773
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Spirit
Loyalty
Cayman,
Ltd.
/
Spirit
IP
Cayman
Ltd
8.000%
due
09/20/25
(Þ)
150
168
Standard
Chartered
PLC
3.785%
due
05/21/25
(USD
3
Month
LIBOR
+
1.560%)(Ê)(Þ)
447
485
7.014%
due
12/30/49
(USD
3
Month
LIBOR
+
1.460%)(Ê)(ƒ)(Þ)
111
144
Stars
Group
Holdings
BV
Term
Loan
B
3.720%
due
07/10/25
(USD
3
Month
LIBOR
+
3.500%)(Ê)
4
4
Suncor
Energy,
Inc.
6.500%
due
06/15/38
607
845
Suzano
Austria
GmbH
3.750%
due
01/15/31
270
286
Swedbank
AB
2.800%
due
03/14/22
(Þ)
624
642
1.300%
due
06/02/23
(Þ)
200
204
Syngenta
Finance
NV
3.125%
due
03/28/22
718
731
Telecom
Italia
Capital
SA
6.375%
due
11/15/33
276
339
Telecom
Italia
SpA
6.000%
due
09/30/34
253
308
Telefonaktiebolaget
LM
Ericsson
4.125%
due
05/15/22
179
186
Telefonica
Emisiones
SA
4.570%
due
04/27/23
682
746
5.213%
due
03/08/47
150
193
Tesco
PLC
6.150%
due
11/15/37
(Þ)
623
804
Teva
Pharmaceutical
Finance
Co.
BV
2.950%
due
12/18/22
40
40
Teva
Pharmaceutical
Finance
Netherlands
III
BV
2.800%
due
07/21/23
330
327
3.150%
due
10/01/26
370
356
Toronto-Dominion
Bank
(The)
0.750%
due
06/12/23
240
243
1.150%
due
06/12/25
110
112
Total
Capital
Canada,
Ltd.
2.750%
due
07/15/23
770
817
Total
Capital
International
SA
2.700%
due
01/25/23
713
747
Trane
Technologies
Luxembourg
Finance
SA
4.500%
due
03/21/49
638
830
TransCanada
PipeLines
,
Ltd.
5.600%
due
03/31/34
644
841
TransCanada
Trust
Series
16-A
5.875%
due
08/15/76
(USD
3
Month
LIBOR
+
4.640%)(Ê)
746
832
Trust
Fibra
Uno
5.250%
due
01/30/26
(Þ)
685
772
TSMC
Global,
Ltd.
0.750%
due
09/28/25
(Þ)
200
199
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
99
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
UBS
Group
AG
1.750%
due
04/21/22
(Þ)
1,017
1,035
3.491%
due
05/23/23
(Þ)
270
281
2.859%
due
08/15/23
(USD
3
Month
LIBOR
+
0.954%)(Ê)(Þ)
200
207
4.125%
due
04/15/26
(Þ)
694
802
7.000%
due
12/31/99
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
4.344%)(Ê)
(ƒ)(Þ)
660
724
UniCredit
SpA
6.572%
due
01/14/22
(Þ)
1,042
1,098
Vale
Overseas,
Ltd.
6.875%
due
11/21/36
180
264
Vodafone
Group
PLC
4.375%
due
05/30/28
170
204
7.000%
due
04/04/79
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
4.873%)(Ê)
321
399
Woori
Bank
4.750%
due
04/30/24
(Þ)
734
817
Wynn
Macau,
Ltd.
5.625%
due
08/26/28
(Þ)
200
210
Ziggo
Secured
Finance
BV
Term
Loan
I
2.652%
due
04/30/28
(USD
1
Month
LIBOR
+
2.500%)(Ê)
16
16
95,070
Loan
Agreements
-
1.2%
Air
Medical
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
5.750%
due
09/24/25
(USD
3
Month
LIBOR
+
4.750%)(Ê)
175
174
Allied
Universal
Holdco
Term
Loan
B
4.397%
due
07/12/26
(USD
1
Month
LIBOR
+
4.250%)(Ê)
321
319
APi
Group
DE,
Inc.
Term
Loan
B
2.647%
due
10/01/26
(USD
1
Month
LIBOR
+
2.500%)(Ê)
317
316
Asplundh
Tree
Expert
LLC
Term
Loan
B
2.644%
due
09/04/27
(USD
1
Month
LIBOR
+
2.500%)(Ê)
40
40
Asurion
LLC
1st
Lien
Term
Loan
B7
3.147%
due
11/03/24
(USD
1
Month
LIBOR
+
3.000%)(Ê)
187
185
Asurion
LLC
2020
Term
Loan
B8
0.000%
due
12/23/26
(~)(Ê)(v)
20
20
Asurion
LLC
Term
Loan
B4
3.396%
due
08/04/22
(USD
1
Month
LIBOR
+
3.250%)(Ê)
184
182
Asurion
LLC
Term
Loan
B6
3.147%
due
11/03/23
(USD
1
Month
LIBOR
+
3.000%)(Ê)
47
46
Atlantic
Aviation
FBO,
Inc.
Term
Loan
B
3.897%
due
12/06/25
(USD
1
Month
LIBOR
+
3.750%)(Ê)
20
20
Berry
Global,
Inc.
Term
Loan
W
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.156%
due
10/01/22
(USD
1
Month
LIBOR
+
2.000%)(Ê)
59
59
Boeing
Co.
(The)
Delayed
Draw
Term
Loan
1.511%
due
02/06/22
(USD
3
Month
LIBOR
+
1.250%)(Ê)
270
266
Brickman
Group,
Ltd.
1st
Lien
Term
Loan
B
2.688%
due
08/15/25
(USD
1
Month
LIBOR
+
2.500%)(Ê)
39
39
Caesars
Resort
Collection
LLC
1st
Lien
Term
Loan
B
2.897%
due
12/22/24
(USD
1
Month
LIBOR
+
2.750%)(Ê)
137
134
Caesars
Resort
Collection
LLC
2020
Term
Loan
4.688%
due
06/19/25
(USD
1
Month
LIBOR
+
4.500%)(Ê)
160
160
Change
Healthcare
Holdings
LLC
1st
Lien
Term
Loan
B
3.500%
due
03/01/24
(USD
3
Month
LIBOR
+
2.500%)(Ê)
348
345
Charter
Communications
Operating
LLC
Term
Loan
B1
1.900%
due
04/30/25
(USD
1
Month
LIBOR
+
1.750%)(Ê)
323
322
Citadel
Securities,
LP
Term
Loan
B
2.897%
due
02/27/26
(USD
1
Month
LIBOR
+
2.750%)(Ê)
267
266
CityCenter
Holdings
LLC
Term
Loan
B
3.000%
due
04/18/24
(USD
1
Month
LIBOR
+
2.250%)(Ê)
27
26
CSC
Holdings
LLC
2019
Term
Loan
B5
2.652%
due
04/15/27
(USD
1
Month
LIBOR
+
2.500%)(Ê)
50
49
Dcert
Buyer,
Inc.
Term
Loan
B
4.147%
due
10/16/26
(USD
1
Month
LIBOR
+
4.000%)(Ê)
328
327
Deerfield
Dakota
Holding,
LLC
2020
Term
Loan
B
4.750%
due
04/09/27
(USD
3
Month
LIBOR
+
3.750%)(Ê)
100
100
Dell
International
LLC
Term
Loan
B
2.750%
due
09/19/25
(USD
1
Month
LIBOR
+
2.000%)(Ê)
212
212
Delta
Air
Lines,
Inc.
Term
Loan
B
5.750%
due
04/29/23
(USD
3
Month
LIBOR
+
4.750%)(Ê)
229
232
Edelman
Financial
Center
LLC
Term
Loan
B1
3.145%
due
07/19/25
(USD
1
Month
LIBOR
+
3.000%)(Ê)
69
67
Elanco
Animal
Health,
Inc.
Term
Loan
B
1.905%
due
02/04/27
(USD
3
Month
LIBOR
+
1.750%)(Ê)
213
211
Eyecare
Partners
LLC
Delayed
Draw
Term
Loan
3.750%
due
02/20/27
(USD
1
Month
LIBOR
+
3.750%)(Ê)
19
18
Eyecare
Partners
LLC
Term
Loan
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
100
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.897%
due
02/20/27
(USD
1
Month
LIBOR
+
3.750%)(Ê)
80
78
First
Eagle
Holdings,
Inc.
Term
Loan
B
2.720%
due
02/02/27
(USD
3
Month
LIBOR
+
2.500%)(Ê)
39
39
Focus
Financial
Partners
LLC
2020
Term
Loan
2.147%
due
07/03/24
(USD
1
Month
LIBOR
+
2.000%)(Ê)
148
147
Genesee
&
Wyoming,
Inc.
New
Term
Loan
2.220%
due
12/30/26
(USD
3
Month
LIBOR
+
2.000%)(Ê)
149
148
Golden
Nugget,
Inc.
1st
Lien
Term
Loan
B
3.250%
due
10/04/23
(USD
2
Month
LIBOR
+
2.500%)(Ê)
148
143
HCA,
Inc.
Term
Loan
B12
1.897%
due
03/13/25
(USD
1
Month
LIBOR
+
1.750%)(Ê)
47
47
Hilton
Worldwide
Finance
LLC
Term
Loan
B
1.898%
due
06/21/26
(USD
1
Month
LIBOR
+
1.750%)(Ê)
345
340
iHeartCommunications
,
Inc.
2020
Term
Loan
3.147%
due
05/01/26
(USD
1
Month
LIBOR
+
3.000%)(Ê)
257
252
Intrawest
Resorts
Holdings,
Inc.
1st
Lien
Term
Loan
B1
2.897%
due
07/31/24
(USD
1
Month
LIBOR
+
2.750%)(Ê)
137
135
Jaguar
Holding
Co.
II
1st
Lien
Term
Loan
3.500%
due
08/18/22
(USD
1
Month
LIBOR
+
2.500%)(Ê)
85
85
Jane
Street
Group
LLC
Term
Loan
3.147%
due
01/07/25
(USD
3
Month
LIBOR
+
3.000%)(Ê)
316
315
Level
3
Financing,
Inc.
Term
Loan
B
1.897%
due
03/01/27
(USD
1
Month
LIBOR
+
1.750%)(Ê)
148
146
McAfee
LLC
Term
Loan
B
3.896%
due
09/29/24
(USD
1
Month
LIBOR
+
3.750%)(Ê)
204
204
Michaels
Stores,
Inc.
2020
Term
Loan
B
4.250%
due
10/01/27
(USD
1
Month
LIBOR
+
3.500%)(Ê)
127
126
Milano
Acquisition
Corp.
Term
Loan
B
4.750%
due
10/01/27
(USD
3
Month
LIBOR
+
4.000%)(Ê)
180
180
MultiPlan
,
Inc.
Term
Loan
B
3.750%
due
06/07/23
(USD
3
Month
LIBOR
+
2.750%)(Ê)
170
169
Nexstar
Broadcasting,
Inc.
Term
Loan
B4
2.905%
due
09/19/26
(USD
3
Month
LIBOR
+
2.750%)(Ê)
346
343
Option
Care
Health,
Inc.
Term
Loan
B
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.647%
due
08/06/26
(USD
1
Month
LIBOR
+
4.250%)(Ê)
317
316
Party
City
Holdings,
Inc.
1st
Lien
Term
Loan
3.250%
due
08/19/22
(USD
3
Month
LIBOR
+
2.500%)(Ê)
22
21
PCI
Gaming
Authority
Term
Loan
2.647%
due
05/31/26
(USD
1
Month
LIBOR
+
2.500%)(Ê)
79
78
Phoenix
Guarantor,
Inc.
Term
Loan
B
3.401%
due
03/05/26
(USD
1
Month
LIBOR
+
3.250%)(Ê)
122
121
Prime
Security
Services
Borrower
LLC
Term
Loan
B1
4.250%
due
09/23/26
(USD
3
Month
LIBOR
+
3.250%)(Ê)
228
229
RegionalCare
Hospital
Partners
Holdings,
Inc.
Term
Loan
B
3.897%
due
11/16/25
(USD
1
Month
LIBOR
+
3.750%)(Ê)
277
275
Reynolds
American,
Inc.
Term
Loan
1.896%
due
02/04/27
(USD
1
Month
LIBOR
+
1.750%)(Ê)
149
148
Reynolds
Group
Holdings,
Inc.
1st
Lien
Term
Loan
B
3.826%
due
02/05/23
(USD
1
Month
LIBOR
+
2.750%)(Ê)
5
4
Scientific
Games
International,
Inc. 1st
Lien
Term
Loan
B5
3.471%
due
08/14/24
(USD
1
Month
LIBOR
+
2.750%)(Ê)
320
312
Seattle
SpinCo
,
Inc.
1st
Lien
Term
Loan
B3
2.647%
due
06/21/24
(USD
1
Month
LIBOR
+
2.750%)(Ê)
26
25
Sotera
Health
Holdings
LLC
Term
Loan
5.500%
due
12/13/26
(USD
3
Month
LIBOR
+
4.500%)(Ê)
283
284
TKC
Holdings,
Inc.
1st
Lien
Term
Loan
4.750%
due
02/01/23
(USD
3
Month
LIBOR
+
3.750%)(Ê)
216
212
Trans
Union
LLC
Term
Loan
B5
1.897%
due
11/13/26
(USD
1
Month
LIBOR
+
1.750%)(Ê)
92
92
UFC
Holdings
LLC
Term
Loan
4.250%
due
04/29/26
(USD
6
Month
LIBOR
+
3.250%)(Ê)
217
216
US
Foods,
Inc.
Term
Loan
B
1.897%
due
06/27/23
(USD
1
Month
LIBOR
+
1.750%)(Ê)
89
88
2.750%
due
09/13/26
(USD
1
Month
LIBOR
+
2.000%)(Ê)
89
88
VFH
Parent
LLC
Term
Loan
B
3.151%
due
03/01/26
(USD
3
Month
LIBOR
+
3.000%)(Ê)
272
271
VICI
Properties,
Inc.
1st
Lien
Term
Loan
B
1.906%
due
12/22/24
(USD
1
Month
LIBOR
+
1.750%)(Ê)
146
144
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
101
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Virgin
Media
Secured
Finance
PLC
Term
Loan
2.652%
due
01/31/28
(USD
1
Month
LIBOR
+
2.500%)(Ê)
297
294
VVC
Holdings
Corp.
Term
Loan
B
4.750%
due
02/11/26
(USD
1
Month
LIBOR
+
4.500%)(Ê)
424
422
Western
Digital
Corp.
1st
Lien
Term
Loan
B4
1.906%
due
04/29/23
(USD
1
Month
LIBOR
+
1.750%)(Ê)
24
24
Wynn
Resorts
Finance
LLC
Term
Loan
A
1.900%
due
09/20/24
(USD
1
Month
LIBOR
+
1.750%)(Ê)
338
325
11,021
Mortgage-Backed
Securities
-
22.9%
American
Home
Mortgage
Investment
Trust
Series
2004-4
Class
4A
2.805%
due
02/25/45
(USD
6
Month
LIBOR
+
2.000%)(Ê)
6
6
BAMLL
Commercial
Mortgage
Securities
Trust
Series
2020-JGDN
Class
A
3.000%
due
11/15/25
(USD
1
Month
LIBOR
+
2.750%)(Ê)(Þ)
900
901
Banc
of
America
Funding
Trust
Series
2005-D
Class
A1
4.217%
due
05/25/35
(~)(Ê)
208
213
Series
2006-6
Class
2A1
6.000%
due
08/25/36
710
713
BCAP
LLC
Trust
Series
2010-RR7
Class
3A12
3.569%
due
08/26/35
(~)(Ê)(Þ)
639
579
Bear
Stearns
ARM
Trust
Series
2004-3
Class
2A
3.911%
due
07/25/34
(~)(Ê)
99
95
Bear
Stearns
Commercial
Mortgage
Securities
Trust
Series
2007-T26
Class
AM
5.513%
due
01/12/45
(~)(Ê)
71
71
Bellemeade
Re,
Ltd.
Series
2020-1A
Class
M1A
2.825%
due
06/25/30
(USD
1
Month
LIBOR
+
2.650%)(Ê)(Þ)
929
931
Series
2020-2A
Class
M1B
3.583%
due
08/26/30
(USD
1
Month
LIBOR
+
3.200%)(Ê)(Þ)
1,059
1,070
BX
Trust
Series
2018-BILT
Class
C
1.405%
due
05/15/30
(USD
1
Month
LIBOR
+
1.220%)(Ê)(Þ)
1,650
1,582
Series
2018-BIOA
Class
E
2.136%
due
03/15/37
(USD
1
Month
LIBOR
+
1.951%)(Ê)(Þ)
1,575
1,576
Series
2018-IND
Class
G
2.235%
due
11/15/35
(USD
1
Month
LIBOR
+
2.050%)(Ê)(Þ)
133
133
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2019-XL
Class
A
1.105%
due
10/15/36
(USD
1
Month
LIBOR
+
0.920%)(Ê)(Þ)
1,044
1,046
CAMB
Commercial
Mortgage
Trust
Series
2019-LIFE
Class
F
2.735%
due
12/15/37
(USD
1
Month
LIBOR
+
2.550%)(Ê)(Þ)
987
956
Series
2019-LIFE
Class
G
3.435%
due
12/15/37
(USD
1
Month
LIBOR
+
3.250%)(Ê)(Þ)
1,651
1,588
CHL
Mortgage
Pass-Through
Trust
Series
2005-3
Class
1A2
0.748%
due
04/25/35
(USD
1
Month
LIBOR
+
0.580%)(Ê)
6
5
Citigroup
Commercial
Mortgage
Trust
Series
2013-375P
Class
A
3.251%
due
05/10/35
(Þ)
170
178
Series
2013-375P
Class
D
3.635%
due
05/10/35
(~)(Ê)(Þ)
1,418
1,425
Series
2019-SST2
Class
F
2.685%
due
12/15/36
(USD
1
Month
LIBOR
+
2.500%)(Ê)(Þ)
430
423
Citigroup
Mortgage
Loan
Trust,
Inc.
Series
2005-11
Class
A2A
4.380%
due
10/25/35
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.400%)(Ê)
3
3
Series
2015-2
Class
5A1
0.737%
due
03/25/47
(USD
1
Month
LIBOR
+
0.250%)(Ê)(Þ)
70
71
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
216
Series
2014-277P
Class
A
3.732%
due
08/10/49
(~)(Ê)(Þ)
205
221
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
(USD
1
Month
LIBOR
+
1.550%)(Ê)(Þ)
899
838
CORE
Mortgage
Trust
Series
2019-CORE
Class
D
1.835%
due
12/15/31
(USD
1
Month
LIBOR
+
1.650%)(Ê)(Þ)
1,520
1,501
Countrywide
Alternative
Loan
Trust
Series
2007-16CB
Class
1A5
0.548%
due
08/25/37
(USD
1
Month
LIBOR
+
0.400%)(Ê)
346
246
Credit
Suisse
Mortgage
Capital
Certificates
Series
2017-CHOP
Class
G
5.535%
due
07/15/32
(USD
1
Month
LIBOR
+
5.350%)(Ê)(Þ)
600
421
Series
2019-ICE4
Class
A
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
102
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.165%
due
05/15/36
(USD
1
Month
LIBOR
+
0.980%)(Ê)(Þ)
170
170
Series
2019-ICE4
Class
E
2.335%
due
05/15/36
(USD
1
Month
LIBOR
+
2.150%)(Ê)(Þ)
1,282
1,274
Credit
Suisse
Mortgage
Trust
4.764%
due
12/15/22
680
669
Series
2018-J1
Class
A2
3.500%
due
02/25/48
(~)(Ê)(Þ)
718
733
DBGS
Mortgage
Trust
Series
2019-1735
Class
D
4.334%
due
04/10/37
(~)(Ê)(Þ)
985
1,013
Deutsche
Bank
Commercial
Mortgage
Trust
Series
2016-C3
Class
A5
2.890%
due
08/10/49
240
262
Deutsche
Mortgage
Securities,
Inc.
Re-
REMIC
Trust
Series
2007-WM1
Class
A1
3.658%
due
06/27/37
(~)(Ê)(Þ)
351
350
Eagle
Re,
Ltd.
Series
2018-1
Class
M2
3.148%
due
11/25/28
(USD
1
Month
LIBOR
+
3.000%)(Ê)(Þ)
732
735
Series
2020-1
Class
M1A
1.068%
due
01/25/30
(USD
1
Month
LIBOR
+
0.900%)(Ê)(Þ)
511
509
Fannie
Mae
4.500%
due
2024
1
2
4.500%
due
2025
81
87
2.560%
due
2028
370
407
2.790%
due
2029
300
338
3.160%
due
2029
49
55
2.260%
due
2030
197
214
3.500%
due
2030
70
75
2.600%
due
2031
375
414
5.000%
due
2031
75
84
2.500%
due
2032
1,003
1,062
6.000%
due
2032
14
17
3.000%
due
2033
718
762
3.500%
due
2033
514
555
5.000%
due
2033
5
5
3.500%
due
2034
107
116
5.500%
due
2034
12
14
2.500%
due
2035
5,838
6,187
4.500%
due
2035
318
362
5.500%
due
2037
84
99
5.500%
due
2038
360
424
6.000%
due
2039
32
38
4.000%
due
2040
224
253
5.500%
due
2040
429
504
6.000%
due
2040
98
116
4.000%
due
2041
365
406
6.000%
due
2041
155
185
3.500%
due
2043
967
1,056
4.000%
due
2044
776
877
3.500%
due
2045
1,139
1,233
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.000%
due
2046
665
708
3.500%
due
2046
378
406
4.000%
due
2046
1,072
1,179
4.500%
due
2046
361
408
3.000%
due
2047
3,006
3,182
3.500%
due
2047
428
465
4.000%
due
2047
624
672
4.500%
due
2047
338
369
3.500%
due
2048
967
1,025
4.000%
due
2048
1,257
1,349
4.500%
due
2048
2,012
2,218
5.000%
due
2048
641
710
3.000%
due
2049
5,758
6,205
3.500%
due
2049
747
810
4.000%
due
2049
1,448
1,585
4.500%
due
2049
427
466
5.000%
due
2049
897
991
2.000%
due
2050
4,203
4,366
2.500%
due
2050
16,053
17,107
3.000%
due
2050
12,578
13,504
3.500%
due
2050
4,199
4,482
4.500%
due
2050
289
314
5.000%
due
2050
176
194
4.000%
due
2056
932
1,039
4.500%
due
2056
232
265
5.500%
due
2056
218
258
3.500%
due
2057
699
772
4.000%
due
2057
129
144
4.500%
due
2057
189
217
4.500%
due
2058
70
80
15
Year
TBA(Ï)
1.500%
1,700
1,749
30
Year
TBA(Ï)
2.000%
5,600
5,809
2.500%
2,800
2,951
Fannie
Mae
Aces
Series
2013-M6
Class
1AC
3.552%
due
02/25/43
(~)(Ê)
84
95
Series
2018-M9
Class
APT2
3.228%
due
04/25/28
(~)(Ê)
196
220
Series
2019-M19
Class
A2
2.560%
due
09/25/29
389
426
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
113
Series
2019-M28
Class
AV
2.232%
due
02/25/27
261
279
Fannie
Mae
Connecticut
Avenue
Securities
Trust
Series
2014-C02
Class
1M2
2.768%
due
05/25/24
(USD
1
Month
LIBOR
+
2.600%)(Ê)
610
594
Series
2014-C03
Class
1M2
3.168%
due
07/25/24
(USD
1
Month
LIBOR
+
3.000%)(Ê)
438
426
Series
2014-C04
Class
1M2
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
103
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.068%
due
11/25/24
(USD
1
Month
LIBOR
+
4.900%)(Ê)
549
563
Series
2016-C04
Class
1M2
4.418%
due
01/25/29
(USD
1
Month
LIBOR
+
4.250%)(Ê)
33
34
Series
2016-C06
Class
1M2
4.418%
due
04/25/29
(USD
1
Month
LIBOR
+
4.250%)(Ê)
1,430
1,498
Series
2017-C01
Class
1M2
3.718%
due
07/25/29
(USD
1
Month
LIBOR
+
3.550%)(Ê)
543
559
Series
2017-C05
Class
1M2
2.368%
due
01/25/30
(USD
1
Month
LIBOR
+
2.200%)(Ê)
1,502
1,500
Series
2018-C01
Class
1B1
3.718%
due
07/25/30
(USD
1
Month
LIBOR
+
3.550%)(Ê)
270
269
Series
2018-C03
Class
1M2
2.318%
due
10/25/30
(USD
1
Month
LIBOR
+
2.150%)(Ê)
518
517
Series
2019-R07
Class
1M2
2.268%
due
10/25/39
(USD
1
Month
LIBOR
+
2.100%)(Ê)(Þ)
588
586
Fannie
Mae
REMICS
Series
1999-56
Class
Z
7.000%
due
12/18/29
7
8
Series
2004-W5
Class
A1
6.000%
due
02/25/47
137
163
Series
2005-24
Class
ZE
5.000%
due
04/25/35
148
168
Series
2012-35
Class
SC
Interest
Only
STRIP
6.332%
due
04/25/42
(-1
x
USD
1
Month
LIBOR
+
6.500%)(Ê)
17
4
Series
2012-55
Class
PC
3.500%
due
05/25/42
424
463
Series
2013-54
Class
BS
Interest
Only
STRIP
5.982%
due
06/25/43
(-1
x
USD
1
Month
LIBOR
+
6.150%)(Ê)
75
17
Series
2013-124
Class
SB
Interest
Only
STRIP
5.782%
due
12/25/43
(-1
x
USD
1
Month
LIBOR
+
5.950%)(Ê)
87
17
Series
2016-23
Class
ST
Interest
Only
STRIP
5.832%
due
11/25/45
(-1
x
USD
1
Month
LIBOR
+
6.000%)(Ê)
293
69
Series
2016-61
Class
BS
Interest
Only
STRIP
5.932%
due
09/25/46
(-1
x
USD
1
Month
LIBOR
+
6.100%)(Ê)
247
48
Series
2017-76
Class
SB
Interest
Only
STRIP
5.932%
due
10/25/57
(-1
x
USD
1
Month
LIBOR
+
6.100%)(Ê)
270
55
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2017-85
Class
SC
Interest
Only
STRIP
6.032%
due
11/25/47
(-1
x
USD
1
Month
LIBOR
+
6.200%)(Ê)
54
11
Series
2020-47
Class
GZ
2.000%
due
07/25/50
101
102
Series
2020-56
Class
DI
Interest
Only
STRIP
2.500%
due
08/25/50
196
29
Series
2020-74
Class
EI
Interest
Only
STRIP
2.500%
due
10/25/50
98
14
Series
2020-89
Class
DI
Interest
Only
STRIP
2.500%
due
12/25/50
298
38
Fannie
Mae-Aces
Series
2019-M4
Class
A2
3.610%
due
02/25/31
90
107
Series
2020-M36
Class
X1
Interest
Only
STRIP
1.564%
due
09/25/34
(~)(Ê)
599
64
Flagstar
Mortgage
Trust
Series
2018-2
Class
A4
3.500%
due
04/25/48
(~)(Ê)(Þ)
105
107
Freddie
Mac
3.500%
due
2030
77
83
2.500%
due
2031
3,503
3,713
3.000%
due
2032
49
51
4.500%
due
2034
110
121
5.500%
due
2038
269
316
6.000%
due
2038
64
76
5.000%
due
2040
153
178
4.000%
due
2041
951
1,075
4.500%
due
2041
150
168
5.500%
due
2041
166
195
3.500%
due
2043
455
505
4.000%
due
2044
392
432
3.500%
due
2045
800
875
4.000%
due
2045
301
331
3.000%
due
2046
2,416
2,615
4.000%
due
2046
219
237
4.500%
due
2046
192
211
2.542%
due
2047
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.285%)(Ê)
172
178
3.000%
due
2047
948
1,024
3.000%
due
2048
145
157
4.000%
due
2048
1,543
1,680
4.500%
due
2048
425
462
5.000%
due
2048
131
145
3.000%
due
2049
460
493
4.500%
due
2049
498
549
5.000%
due
2049
192
212
1.500%
due
2050
1,985
2,005
2.500%
due
2050
3,074
3,276
3.000%
due
2050
9,135
9,805
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
104
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.500%
due
2050
672
715
4.000%
due
2050
146
156
4.500%
due
2050
159
172
5.000%
due
2050
315
348
2.000%
due
2051
4,100
4,259
Series
2014-334
Class
S7
Interest
Only
STRIP
5.915%
due
08/15/44
(-1
x
USD
1
Month
LIBOR
+
6.100%)(Ê)
122
27
Series
2016-353
Class
S1
Interest
Only
STRIP
5.815%
due
12/15/46
(-1
x
USD
1
Month
LIBOR
+
6.000%)(Ê)
60
14
Freddie
Mac
Multifamily
Structured
Pass-Through
Certificates
Series
2016-K058
Class
X1
Interest
Only
STRIP
0.926%
due
08/25/26
(~)(Ê)
2,012
93
Freddie
Mac
REMICS
Series
2003-2624
Class
QH
5.000%
due
06/15/33
53
61
Series
2006-R007
Class
ZA
6.000%
due
05/15/36
175
208
Series
2010-3632
Class
PK
5.000%
due
02/15/40
106
118
Series
2010-3653
Class
B
4.500%
due
04/15/30
158
174
Series
2011-3973
Class
SA
Interest
Only
STRIP
6.305%
due
12/15/41
(-1
x
USD
1
Month
LIBOR
+
6.490%)(Ê)
264
60
Series
2012-4010
Class
KM
3.000%
due
01/15/42
91
97
Series
2018-4813
Class
CJ
3.000%
due
08/15/48
43
45
Series
2019-RR01
Class
X
Interest
Only
STRIP
1.534%
due
06/25/28
(~)(Ê)
2,500
245
Series
2020-5008
Class
IE
Interest
Only
STRIP
2.000%
due
09/25/50
1,128
102
Series
2020-5010
Class
IK
Interest
Only
STRIP
2.500%
due
09/25/50
98
12
Series
2020-5010
Class
JI
Interest
Only
STRIP
2.500%
due
09/25/50
197
28
Series
2020-5013
Class
IN
Interest
Only
STRIP
2.500%
due
09/25/50
99
15
Series
2020-5018
Class
MI
Interest
Only
STRIP
2.000%
due
10/25/50
99
13
Series
2020-5038
Class
NI
Interest
Only
STRIP
2.000%
due
11/25/50
1,484
170
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2020-5040
Class
IB
Interest
Only
STRIP
2.500%
due
11/25/50
99
12
Series
2020-5050
Class
IP
Interest
Only
STRIP
3.000%
due
10/25/50
2,856
388
Series
2020-5052
Class
IO
Interest
Only
STRIP
3.500%
due
12/25/50
1,307
148
Series
2020-5052
Class
KI
Interest
Only
STRIP
4.000%
due
12/25/50
1,718
232
Freddie
Mac
Seasoned
Credit
Risk
Transfer
Trust
Series
2020-1
Class
M
4.250%
due
08/25/59
(~)(Ê)(Þ)
720
727
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
Series
2014-HQ2
Class
M3
3.918%
due
09/25/24
(USD
1
Month
LIBOR
+
3.750%)(Ê)
516
530
Series
2015-DN1
Class
M3
4.318%
due
01/25/25
(USD
1
Month
LIBOR
+
4.150%)(Ê)
153
155
Series
2016-DNA2
Class
M3
4.818%
due
10/25/28
(USD
1
Month
LIBOR
+
4.650%)(Ê)
1,553
1,615
Series
2016-DNA4
Class
M3
3.968%
due
03/25/29
(USD
1
Month
LIBOR
+
3.800%)(Ê)
2,043
2,115
Series
2017-DNA2
Class
B1
5.318%
due
10/25/29
(USD
1
Month
LIBOR
+
5.150%)(Ê)
510
542
Series
2017-DNA2
Class
M2
3.618%
due
10/25/29
(USD
1
Month
LIBOR
+
3.450%)(Ê)
440
454
Series
2020-DNA1
Class
B1
2.450%
due
01/25/50
(USD
1
Month
LIBOR
+
2.300%)(Ê)(Þ)
270
265
Series
2020-DNA5
Class
M1
1.387%
due
10/25/50
(SOFR
30
Day
Average
+
1.300%)(Ê)(Þ)
678
679
Ginnie
Mae
I
3.000%
due
2042
268
284
3.500%
due
2048
62
66
Ginnie
Mae
II
3.500%
due
2044
60
65
3.000%
due
2045
81
86
3.500%
due
2045
23
24
3.000%
due
2046
175
187
3.500%
due
2047
240
261
4.000%
due
2047
478
516
4.500%
due
2048
1,105
1,197
5.000%
due
2048
354
387
3.500%
due
2049
148
154
4.000%
due
2049
471
511
4.500%
due
2049
405
438
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
105
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.000%
due
2049
697
763
2.500%
due
2050
100
108
3.000%
due
2050
282
295
3.500%
due
2050
95
101
4.000%
due
2050
572
612
30
Year
TBA(Ï)
2.000%
1,700
1,777
2.500%
1,600
1,692
Ginnie
Mae
REMICS
Series
2012-135
Class
IO
Interest
Only
STRIP
0.607%
due
01/16/53
(~)(Ê)
1,244
26
Series
2013-53
Class
OI
Interest
Only
STRIP
3.500%
due
04/20/43
544
53
Series
2013-107
Class
AD
2.694%
due
11/16/47
(~)(Ê)
173
183
Series
2014-17
Class
AM
2.580%
due
06/16/48
(~)(Ê)
49
51
Series
2016-21
Class
ST
Interest
Only
STRIP
5.960%
due
02/20/46
(-1
x
USD
1
Month
LIBOR
+
6.150%)(Ê)
186
41
Series
2016-51
Class
NS
Interest
Only
STRIP
5.860%
due
04/20/46
(-1
x
USD
1
Month
LIBOR
+
6.050%)(Ê)
81
15
Series
2018-130
Class
A
3.250%
due
05/16/59
32
34
Series
2019-123
Class
A
3.000%
due
10/20/49
57
58
Series
2020-47
Class
MI
Interest
Only
STRIP
3.500%
due
04/20/50
385
56
Series
2020-47
Class
NI
Interest
Only
STRIP
3.500%
due
04/20/50
96
16
Series
2020-123
Class
IL
Interest
Only
STRIP
2.500%
due
08/20/50
99
14
Series
2020-123
Class
NI
Interest
Only
STRIP
2.500%
due
08/20/50
198
28
Series
2020-127
Class
IN
Interest
Only
STRIP
2.500%
due
08/20/50
99
13
Series
2020-129
Class
IE
Interest
Only
STRIP
2.500%
due
09/20/50
99
14
Series
2020-160
Class
IH
Interest
Only
STRIP
2.500%
due
10/20/50
100
14
Series
2020-160
Class
YI
Interest
Only
STRIP
2.500%
due
10/20/50
299
43
Series
2020-167
Class
BI
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Interest
Only
STRIP
2.500%
due
11/20/50
1,683
193
Series
2020-167
Class
IA
Interest
Only
STRIP
2.500%
due
11/20/50
1,695
193
Series
2020-167
Class
IW
Interest
Only
STRIP
2.000%
due
11/20/50
1,895
216
Series
2020-173
Class
MI
Interest
Only
STRIP
2.500%
due
11/20/50
5,689
675
Series
2020-H09
Class
FL
1.340%
due
05/20/70
(USD
1
Month
LIBOR
+
1.150%)(Ê)
200
210
Series
2020-H09
Class
NF
1.440%
due
04/20/70
(USD
1
Month
LIBOR
+
1.250%)(Ê)
91
94
Grace
Mortgage
Trust
Series
2014-GRCE
Class
A
3.369%
due
06/10/28
(Þ)
393
393
GS
Mortgage
Securities
Corp.
II
Series
2018-SRP5
Class
A
1.485%
due
09/15/31
(USD
1
Month
LIBOR
+
1.300%)(Ê)(Þ)
490
423
GS
Mortgage
Securities
Trust
Series
2013-GC14
Class
AS
4.507%
due
08/10/46
(Þ)
235
255
Series
2019-SOHO
Class
A
1.085%
due
06/15/36
(USD
1
Month
LIBOR
+
0.900%)(Ê)(Þ)
630
629
Hawaii
Hotel
Trust
Series
2019-MAUI
Class
C
1.835%
due
05/15/38
(USD
1
Month
LIBOR
+
1.650%)(Ê)(Þ)
940
901
Hilton
USA
Trust
Series
2016-HHV
Class
D
4.333%
due
11/05/38
(~)(Ê)(Þ)
1,240
1,266
Series
2016-HHV
Class
E
4.333%
due
11/05/38
(~)(Ê)(Þ)
600
588
Series
2016-SFP
Class
A
2.828%
due
11/05/35
(Þ)
226
226
HMH
Trust
Series
2017-NSS
Class
E
6.292%
due
07/05/31
(Þ)
1,170
993
HomeBanc
Mortgage
Trust
Series
2005-3
Class
M4
0.818%
due
07/25/35
(USD
1
Month
LIBOR
+
0.670%)(Ê)
940
924
Hospitality
Mortgage
Trust
Series
2019-HIT
Class
D
2.185%
due
11/15/36
(USD
1
Month
LIBOR
+
2.000%)(Ê)(Þ)
1,216
1,170
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series
2004-LN2
Class
B
5.686%
due
07/15/41
(~)(Ê)
16
16
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
106
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
JPMorgan
Mortgage
Trust
Series
2018-3
Class
A1
3.500%
due
09/25/48
(~)(Ê)(Þ)
332
342
Series
2018-3
Class
A3
3.500%
due
09/25/48
(~)(Ê)(Þ)
654
668
Series
2018-4
Class
A1
3.500%
due
10/25/48
(~)(Ê)(Þ)
114
117
Series
2018-5
Class
A1
3.500%
due
10/25/48
(~)(Ê)(Þ)
268
274
Series
2018-LTV1
Class
A4
4.000%
due
04/25/49
(~)(Ê)(Þ)
499
508
Legacy
Mortgage
Asset
Trust
Series
2019-GS7
Class
A1
3.250%
due
11/25/59
(~)(Ê)(Þ)
666
667
LSTAR
Securities
Investment,
Ltd.
Series
2019-4
Class
A1
1.673%
due
05/01/24
(USD
1
Month
LIBOR
+
1.500%)(Ê)(Þ)
350
349
ML-CFC
Commercial
Mortgage
Trust
Series
2007-5
Class
AJ
5.450%
due
08/12/48
(~)(Ê)
99
55
Series
2007-5
Class
AJFL
5.450%
due
08/12/48
(~)(Ê)(Þ)
99
55
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2017-C34
Class
B
4.111%
due
11/15/52
(~)(Ê)
240
270
Morgan
Stanley
Capital
I
Trust
Series
2011-C3
Class
A4
4.118%
due
07/15/49
75
75
Series
2015-MS1
Class
A4
3.779%
due
05/15/48
(~)(Ê)
200
224
Series
2016-UBS9
Class
A4
3.594%
due
03/15/49
205
227
Series
2018-BOP
Class
E
2.135%
due
06/15/35
(USD
1
Month
LIBOR
+
1.950%)(Ê)(Þ)
1,669
1,510
Series
2018-SUN
Class
E
2.135%
due
07/15/35
(USD
1
Month
LIBOR
+
1.950%)(Ê)(Þ)
1,955
1,859
Series
2019-BPR
Class
A
1.585%
due
05/15/36
(USD
1
Month
LIBOR
+
1.400%)(Ê)(Þ)
350
337
Series
2019-NUGS
Class
E
3.744%
due
12/15/36
(USD
1
Month
LIBOR
+
2.244%)(Ê)(Þ)
1,970
1,857
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
Series
2017-237P
Class
D
3.865%
due
09/13/39
(~)(Ê)(Þ)
1,500
1,469
Series
2017-237P
Class
XA
Interest
Only
STRIP
0.468%
due
09/13/39
(~)(Ê)(Þ)
8,761
189
Series
2017-237P
Class
XB
Interest
Only
STRIP
0.175%
due
09/13/39
(~)(Ê)(Þ)
5,418
31
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
MSCG
Trust
Series
2015-ALDR
Class
A2
3.577%
due
06/07/35
(~)(Ê)(Þ)
255
251
Natixis
Commercial
Mortgage
Securities
Trust
Series
2019-FAME
Class
A
3.047%
due
08/15/36
(Þ)
440
437
New
Residential
Mortgage
Loan
Trust
Series
2019-NQM4
Class
A2
2.644%
due
09/25/59
(~)(Ê)(Þ)
408
414
Nomura
Resecuritization
Trust
Series
2015-4R
Class
1A14
0.940%
due
03/26/47
(USD
1
Month
LIBOR
+
0.190%)(Ê)(Þ)
1,096
958
Oaktown
Re,
Ltd.
Series
2020-2A
Class
M1A
2.543%
due
10/25/30
(USD
1
Month
LIBOR
+
2.400%)(Ê)(Þ)
1,018
1,019
PMT
Credit
Risk
Transfer
Trust
Series
2019-1R
Class
A
2.170%
due
03/27/24
(USD
1
Month
LIBOR
+
2.000%)(Ê)(Þ)
237
219
Series
2019-3R
Class
A
2.870%
due
10/27/22
(USD
1
Month
LIBOR
+
2.700%)(Ê)(Þ)
371
367
Preston
Ridge
Partners
Mortgage
LLC
Series
2020-3
Class
A1
2.857%
due
09/25/25
(~)(Ê)(Þ)
559
563
Series
2020-6
Class
A1
2.363%
due
11/25/25
(~)(Ê)(Þ)
679
680
Radnor
RE,
Ltd.
Series
2020-1
Class
M1A
1.118%
due
02/25/30
(USD
1
Month
LIBOR
+
0.950%)(Ê)(Þ)
567
566
RBS
Commercial
Funding,
Inc.
Trust
Series
2013-GSP
Class
A
3.961%
due
01/15/32
(~)(Ê)(Þ)
200
211
Residential
Asset
Securitization
Trust
Series
2003-A15
Class
1A2
0.618%
due
02/25/34
(USD
1
Month
LIBOR
+
0.450%)(Ê)
13
12
SBALR
Commercial
Mortgage
Trust
Series
2020-RR1
Class
C
3.979%
due
02/13/53
(~)(Ê)
410
417
Sequoia
Mortgage
Trust
Series
2013-4
Class
A3
1.550%
due
04/25/43
(~)(Ê)
486
486
Series
2015-1
Class
A1
3.500%
due
01/25/45
(~)(Ê)(Þ)
247
252
Structured
Adjustable
Rate
Mortgage
Loan
Trust
Series
2006-5
Class
3A
3.937%
due
06/25/36
(~)(Ê)
922
718
Tharaldson
Hotel
Portfolio
Trust
Series
2018-THL
Class
A
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
107
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
0.925%
due
11/11/34
(USD
1
Month
LIBOR
+
0.750%)(Ê)(Þ)
243
236
UBS
Commercial
Mortgage
Trust
Series
2018-C13
Class
B
4.786%
due
10/15/51
(~)(Ê)
240
269
Washington
Mutual
Mortgage
Pass-
Through
Certificates
Trust
Series
2003-AR7
Class
A7
4.404%
due
08/25/33
(~)(Ê)
41
41
Series
2005-10
Class
3CB1
6.000%
due
11/25/35
624
578
Wells
Fargo
Commercial
Mortgage
Trust
Series
2017-RB1
Class
XA
Interest
Only
STRIP
1.403%
due
03/15/50
(~)(Ê)
1,918
119
WinWater
Mortgage
Loan
Trust
Series
2014-1
Class
A1
3.847%
due
06/20/44
(~)(Ê)(Þ)
297
307
210,311
Non-US
Bonds
-
4.1%
Brazil
Notas
do
Tesouro
Nacional
Series
NTNF
10.000%
due
01/01/23
BRL
2,050
436
10.000%
due
01/01/25
BRL
3,523
784
10.000%
due
01/01/27
BRL
745
170
Canadian
Government
International
Bond
1.500%
due
06/01/23
CAD
1,259
1,019
2.250%
due
06/01/25
CAD
966
821
1.000%
due
06/01/27
CAD
972
789
Colombian
Titulos
de
Tesoreria
Series
B
10.000%
due
07/24/24
COP
8,010,600
2,847
6.000%
due
04/28/28
COP
2,526,100
792
Indonesia
Treasury
Bond
Series
FR56
8.375%
due
09/15/26
IDR
4,651,000
379
Series
FR59
7.000%
due
05/15/27
IDR
7,858,000
602
Series
FR68
8.375%
due
03/15/34
IDR
8,068,000
669
Series
FR77
8.125%
due
05/15/24
IDR
2,537,000
199
Series
FR78
8.250%
due
05/15/29
IDR
15,784,000
1,293
Japan
20
Year
Government
International
Bond
Series
170
0.300%
due
09/20/39
JPY
19,050
182
Malaysia
Government
International
Bond
Series
0114
4.181%
due
07/15/24
MYR
5,384
1,436
Series
0116
3.800%
due
08/17/23
MYR
2,149
559
Series
0119
3.906%
due
07/15/26
MYR
584
157
Series
0218
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.757%
due
04/20/23
MYR
1,887
488
Series
0307
3.502%
due
05/31/27
MYR
1,184
313
Series
0313
3.480%
due
03/15/23
MYR
1,352
348
Series
0319
3.478%
due
06/14/24
MYR
83
22
Series
0411
4.232%
due
06/30/31
MYR
1,112
311
Mexican
Bonos
Series
M
20
8.500%
due
05/31/29
MXN
27,440
1,681
Series
M
30
10.000%
due
11/20/36
MXN
19,304
1,359
Series
M
7.750%
due
11/13/42
MXN
82,307
4,762
8.000%
due
11/07/47
MXN
38,160
2,263
Peruvian
Government
International
Bond
5.700%
due
08/12/24
PEN
3,310
1,069
6.900%
due
08/12/37
PEN
1,861
634
Russian
Federal
Bond
-
OFZ
Series
6207
8.150%
due
02/03/27
RUB
48,740
749
Series
6219
7.750%
due
09/16/26
RUB
31,660
476
Series
6224
6.900%
due
05/23/29
RUB
78,719
1,143
Series
6225
7.250%
due
05/10/34
RUB
1,960
29
Series
6228
7.650%
due
04/10/30
RUB
61,470
939
Series
6230
7.700%
due
03/16/39
RUB
42,470
656
Singapore
Government
International
Bond
3.125%
due
09/01/22
SGD
461
365
2.750%
due
07/01/23
SGD
836
670
3.000%
due
09/01/24
SGD
823
683
2.125%
due
06/01/26
SGD
2,930
2,399
3.500%
due
03/01/27
SGD
316
279
2.875%
due
07/01/29
SGD
549
486
2.875%
due
09/01/30
SGD
1,200
1,078
Spain
Government
International
Bond
1.950%
due
07/30/30
(Þ)
EUR
840
1,217
37,553
United
States
Government
Treasuries
-
14.6%
United
States
Treasury
Inflation
Indexed
Bonds
0.125%
due
01/15/22
581
591
0.375%
due
07/15/23
5,697
6,035
0.375%
due
07/15/25
3,632
3,989
0.125%
due
07/15/30
1,625
1,822
3.375%
due
04/15/32
3,315
5,048
2.125%
due
02/15/40
1,644
2,545
2.125%
due
02/15/41
226
354
1.375%
due
02/15/44
1,765
2,539
0.750%
due
02/15/45
287
370
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
108
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.000%
due
02/15/46
1,022
1,392
0.875%
due
02/15/47
2,384
3,201
1.000%
due
02/15/48
570
793
United
States
Treasury
Notes
1.375%
due
01/31/22
545
552
0.125%
due
05/31/22
11,240
11,243
1.875%
due
05/31/22
1,445
1,481
1.625%
due
08/15/22
6,695
6,857
1.750%
due
05/15/23
5,035
5,226
1.375%
due
06/30/23
370
381
1.250%
due
07/31/23
1,890
1,944
1.625%
due
10/31/23
3,385
3,526
0.250%
due
11/15/23
30
30
2.125%
due
11/30/23
2,330
2,463
1.250%
due
08/31/24
335
347
2.000%
due
02/15/25
2,545
2,724
0.375%
due
04/30/25
520
522
2.125%
due
05/15/25
325
351
0.250%
due
05/31/25
1,950
1,946
0.250%
due
06/30/25
190
189
2.000%
due
08/15/25
1,623
1,748
3.000%
due
10/31/25
525
592
2.250%
due
11/15/25
1,455
1,589
0.250%
due
12/31/25
80
80
1.625%
due
02/15/26
1,973
2,098
2.250%
due
03/31/26
820
899
1.625%
due
05/15/26
2,330
2,480
1.500%
due
08/15/26
5,420
5,738
0.500%
due
04/30/27
20
20
2.375%
due
05/15/27
1,575
1,756
0.500%
due
05/31/27
4,145
4,129
0.500%
due
08/31/27
620
616
0.500%
due
10/31/27
1,920
1,904
0.625%
due
11/30/27
2,000
1,999
0.625%
due
12/31/27
1,960
1,957
2.750%
due
02/15/28
525
602
2.375%
due
05/15/29
375
424
0.625%
due
05/15/30
120
117
0.625%
due
08/15/30
1,490
1,452
0.875%
due
11/15/30
1,650
1,644
1.125%
due
05/15/40
2,355
2,232
1.125%
due
08/15/40
3,005
2,840
1.375%
due
11/15/40
1,230
1,214
2.750%
due
11/15/42
915
1,132
2.875%
due
05/15/43
140
177
3.125%
due
08/15/44
705
928
2.875%
due
08/15/45
1,750
2,223
3.000%
due
05/15/47
290
379
2.750%
due
11/15/47
1,370
1,716
3.000%
due
02/15/48
630
825
3.125%
due
05/15/48
545
730
3.375%
due
11/15/48
370
519
2.000%
due
02/15/50
2,090
2,265
1.250%
due
05/15/50
11,920
10,789
1.375%
due
08/15/50
5,160
4,821
1.625%
due
11/15/50
790
785
133,880
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Total
Long-Term
Investments
(cost
$739,292)
773,953
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)
—
Options
Purchased
-
0.0%
(Number
of
Contracts)
United
States
10
Year
Treasury
Note
Futures
Bank
of
America
Jan
2021
138.00
Put
(8)
USD
1,1
04
(ÿ)
4
Total
Options
Purchased
(cost
$5)
4
Short-Term
Investments
-
15.2%
Anthem,
Inc.
3.700%
due
08/15/21
40
40
Argentina
Treasury
Bond
Series
CER
1.000%
due
08/05/21
ARS
4,140
39
BMW
US
Capital
LLC
1.850%
due
09/15/21
(Þ)
20
20
Bristol-Myers
Squibb
Co.
Series
WI
2.250%
due
08/15/21
70
71
Canadian
Government
International
Bond
0.750%
due
09/01/21
CAD
857
676
Cigna
Corp.
Series
WI
3.400%
due
09/17/21
60
61
Danone
SA
2.077%
due
11/02/21
(Þ)
690
699
Delta
Air
Lines,
Inc.
3.400%
due
04/19/21
170
171
Fannie
Mae
4.316%
due
01/01/21
(~)(Ê)
39
39
Ford
Motor
Credit
Co.
LLC
5.875%
due
08/02/21
200
205
Series
FXD
3.813%
due
10/12/21
200
202
General
Motors
Financial
Co.,
Inc.
4.375%
due
09/25/21
20
21
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
109
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.200%
due
11/06/21
100
103
Genworth
Holdings,
Inc.
7.625%
due
09/24/21
52
53
Goldman
Sachs
Group,
Inc.
(The)
5.250%
due
07/27/21
380
391
Italy
Buoni
Poliennali
Del
Tesoro
2.300%
due
10/15/21
EUR
3,130
3,909
Kinder
Morgan
Energy
Partners,
LP
3.500%
due
03/01/21
30
30
Netflix,
Inc.
5.375%
due
02/01/21
60
60
Nordea
Bank
AB
4.875%
due
05/13/21
(Þ)
265
269
Poland
Government
International
Bond
5.125%
due
04/21/21
550
558
Royal
Bank
of
Canada
Series
GMTN
3.200%
due
04/30/21
70
71
Singapore
Government
International
Bond
2.250%
due
06/01/21
SGD
321
245
1.250%
due
10/01/21
SGD
972
740
Sumitomo
Mitsui
Banking
Corp.
Series
5FXD
2.058%
due
07/14/21
90
91
Svenska
Handelsbanken
AB
Series
BKNT
3.350%
due
05/24/21
250
253
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
140
Toronto-Dominion
Bank
(The)
3.250%
due
06/11/21
90
91
U.S.
Cash
Management
Fund(@)
83,184,462(∞)
83,168
United
States
Treasury
Bills
0.030%
due
01/07/21
(ž)
(ç)
120
120
0.104%
due
01/28/21
(ž)
(ç)
5,677
5,677
0.108%
due
02/25/21
(ž)
6,327
6,326
0.076%
due
03/25/21
(ž)
5,649
5,648
0.078%
due
04/22/21
(ž)
7,856
7,854
0.083%
due
04/29/21
(ž)
2,370
2,369
0.080%
due
05/20/21
(ž)
5,850
5,848
United
States
Treasury
Notes
1.250%
due
10/31/21
7,545
7,615
1.500%
due
11/30/21
5,150
5,214
UnitedHealth
Group,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.875%
due
12/15/21
40
41
US
Bank
NA
Series
BKNT
3.150%
due
04/26/21
250
252
Wells
Fargo
&
Co.
4.600%
due
04/01/21
220
221
Total
Short-Term
Investments
(cost
$139,225)
139,621
Total
Investments
-
99.6%
(identified
cost
$878,566)
913,578
Other
Assets
and
Liabilities,
Net
-
0.4%
3,591
Net
Assets
-
100.0%
917,169
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
110
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
20.2%
1011778
B.C.
Unlimited
Liability
Co.
/
New
Red
Finance,
Inc.
03/15/19
62,000
99.30
62
63
1011778
B.C.
Unlimited
Liability
Co.
/
New
Red
Finance,
Inc.
10/20/20
60,000
100.00
60
60
Abu
Dhabi
Government
International
Bond
10/03/17
200,000
99.88
200
207
Abu
Dhabi
Government
International
Bond
04/08/20
520,000
96.18
500
634
ACE
Securities
Corp.
Mortgage
Loan
Trust
03/08/17
505,952
93.88
475
502
Adani
Abbot
Point
Terminal
Pty,
Ltd.
02/01/19
253,000
93.34
236
240
Adani
Ports
and
Special
Economic
Zone,
Ltd.
08/04/20
811,000
101.40
822
879
Alimentation
Couche-Tard,
Inc.
09/19/17
702,000
102.65
721
790
Ambac
Assurance
Corp.
02/09/17
881
168.77
1
1
Ambac
LSNI
LLC
02/09/17
3,675,345
97.64
3,587
3,656
Anglo
American
Capital
PLC
09/06/17
200,000
99.97
200
218
Anglo
American
Capital
PLC
05/14/20
712,000
106.93
761
833
AP
Moller
-
Maersk
A/S
05/12/20
767,000
99.34
762
897
Applebee's
Funding
LLC
/
IHOP
Funding
LLC
05/28/19
339,150
100.00
339
335
AT&T,
Inc.
06/13/16
83,000
95.24
79
83
AT&T,
Inc.
01/04/18
231,000
99.45
230
230
AT&T,
Inc.
05/31/19
782,000
102.02
798
804
Avis
Budget
Rental
Car
Funding
(AESOP)
LLC
04/16/19
600,000
100.32
602
641
BAMLL
Commercial
Mortgage
Securities
Trust
10/30/20
900,000
100.00
900
901
Banco
de
Bogota
SA
09/22/17
686,000
104.13
714
755
Banco
de
Credito
del
Peru
12/04/19
693,000
103.67
718
740
Banco
Inbursa
SA
Institucion
de
Banca
Multiple
01/06/20
711,000
103.25
734
765
Banco
Santander
Chile
11/03/20
838,000
105.04
880
885
Bangkok
Bank
PCL
11/09/18
219,000
99.64
218
230
Banistmo
SA
12/07/17
729,000
100.40
732
749
Bausch
Health
Cos.,
Inc.
04/15/20
50,000
109.16
55
56
Bausch
Health
Cos.,
Inc.
05/11/20
130,000
100.60
131
141
Bayer
US
Finance
II
LLC
08/03/20
682,000
120.80
824
816
Bayer
US
Finance
LLC
08/02/18
726,000
100.48
729
792
BCAP
LLC
Trust
07/21/16
638,641
76.62
489
579
BCAP
LLC
Trust
03/20/17
469,940
86.54
407
411
BCAP
LLC
Trust
03/20/17
726,983
86.58
629
636
Bellemeade
Re,
Ltd.
08/26/20
928,587
100.51
933
931
Bellemeade
Re,
Ltd.
09/29/20
1,059,000
100.92
1,069
1,070
Berkshire
Hathaway
Energy
Co.
04/07/20
699,000
107.40
751
791
Bharti
Airtel
International
Netherlands
BV
09/26/19
693,000
103.62
718
739
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
11/04/16
652,313
99.74
651
630
BMW
US
Capital
LLC
03/20/18
20,000
99.07
20
20
BNP
Paribas
SA
08/07/18
200,000
99.57
199
237
BNP
Paribas
SA
01/03/19
260,000
100.00
260
289
BNP
Paribas
SA
06/02/20
200,000
100.00
200
209
BNP
Paribas
SA
06/10/20
722,000
110.70
799
842
BX
Trust
03/02/18
1,575,000
99.48
1,567
1,576
BX
Trust
06/01/18
1,650,000
100.00
1,650
1,582
BX
Trust
03/05/19
133,000
100.45
134
133
BX
Trust
10/09/19
1,044,228
100.00
1,044
1,046
CAMB
Commercial
Mortgage
Trust
01/25/19
1,651,000
100.00
1,651
1,588
CAMB
Commercial
Mortgage
Trust
01/25/19
987,000
100.13
988
956
Cameron
LNG
LLC
12/05/19
30,000
100.00
30
33
Cameron
LNG
LLC
12/05/19
170,000
101.24
172
192
Cargill,
Inc.
04/20/20
110,000
100.09
110
113
Carlyle
Global
Market
Strategies
CLO,
Ltd.
11/07/19
760,003
99.63
757
756
Carnival
Corp.
08/13/20
513,000
109.93
564
593
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
03/04/20
290,000
100.54
292
310
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
04/14/20
10,000
101.89
10
11
Cedar
Funding,
Ltd.
07/03/18
1,600,000
100.00
1,600
1,600
Cheniere
Energy,
Inc.
09/15/20
60,000
100.00
60
63
CIFC
Funding,
Ltd.
10/01/20
971,000
99.62
967
971
Citigroup
Commercial
Mortgage
Trust
01/12/17
170,000
102.38
174
178
Citigroup
Commercial
Mortgage
Trust
02/12/19
1,418,000
98
.99
1,402
1,425
Citigroup
Commercial
Mortgage
Trust
02/21/19
430,000
100.00
430
423
Citigroup
Mortgage
Loan
Trust,
Inc.
02/01/17
70,076
97.86
69
71
CLI
Funding
VI
LLC
10/02/20
2,338,863
99.98
2,338
2,359
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
111
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)
$
Commercial
Mortgage
Trust
01/22/16
195,000
1
05
.
47
206
209
Commercial
Mortgage
Trust
02/17/16
205,000
103.64
212
221
Commercial
Mortgage
Trust
07/25/16
140,000
102.00
143
141
Commercial
Mortgage
Trust
11/21/16
211,000
100.78
213
216
Commercial
Mortgage
Trust
06/05/19
899,000
100.00
899
838
Commerzbank
AG
06/24/20
174,000
111.49
194
203
CORE
Mortgage
Trust
03/01/19
1,520,000
100.00
1,520
1,501
Credit
Agricole
SA
06/09/20
250,000
100.00
250
259
Credit
Agricole
SA
06/11/20
734,000
109.02
800
824
Credit
Suisse
Group
AG
03/27/20
250,000
100.00
250
294
Credit
Suisse
Group
AG
06/02/20
330,000
100.00
330
345
Credit
Suisse
Group
AG
07/07/20
699,000
111.73
781
807
Credit
Suisse
Mortgage
Capital
Certificates
06/20/17
600,000
99.60
598
421
Credit
Suisse
Mortgage
Capital
Certificates
05/28/19
170,000
100.00
170
170
Credit
Suisse
Mortgage
Capital
Certificates
05/28/19
1,282,000
100.00
1,282
1,274
Credit
Suisse
Mortgage
Trust
06/26/18
718,084
97.72
702
733
DAE
Funding
LLC
11/01/18
20,000
100.00
20
21
Daimler
Finance
NA
LLC
10/02/20
792,000
102.89
815
819
Danone
SA
10/26/16
690,000
99.96
690
699
Danone
SA
04/22/19
718,000
100.09
719
755
Danske
Bank
A/S
01/11/19
400,000
101.10
404
418
Danske
Bank
A/S
03/11/19
862,000
103.98
904
973
Danske
Bank
A/S
09/17/19
200,000
102.24
204
215
Danske
Bank
A/S
06/16/20
200,000
100.00
200
203
DBGS
Mortgage
Trust
04/03/19
985,000
101.32
998
1,013
DCP
Midstream
Operating,
LP
12/11/19
30,000
104.81
31
32
Dell
International
LLC
/
EMC
Corp.
12/02/20
617,000
148.60
917
931
Delta
Air
Lines
Pass-Through
Trust
04/27/20
1,382,000
102.10
1,414
1,595
Delta
Air
Lines,
Inc.
09/16/20
90,000
100.49
90
98
Delta
Air
Lines,
Inc.
09/16/20
90,000
100.80
91
96
Deutsche
Mortgage
Securities,
Inc.
Re-REMIC
Trust
01/04/17
350,926
100.58
353
350
Dividend
Solar
Loans
LLC
06/28/19
306,083
99.99
306
315
DP
World
PLC
10/03/19
200,000
115.15
230
255
Dryden
50
Senior
Loan
Fund
07/24/17
1,230,000
100.00
1,230
1,230
Eagle
Re,
Ltd.
01/27/20
511,000
100.00
511
509
Eagle
Re,
Ltd.
12/17/20
732,000
100.27
734
735
Electricite
de
France
SA
04/24/20
614,000
130.59
802
886
Electricite
de
France
SA
10/06/20
496,000
104.88
520
526
ENEL
Finance
International
NV
01/05/18
706,000
101.00
713
804
Enel
SpA
07/07/20
679,000
114.99
781
793
Eni
SpA
09/26/19
658,000
108.34
713
779
Equate
Petrochemical
BV
10/27/16
200,000
99.23
198
223
Fannie
Mae
Connecticut
Avenue
Securities
Trust
10/29/19
588,209
100.02
588
586
FirstKey
Homes
Trust
07/31/20
881,000
99.99
881
891
FirstKey
Homes
Trust
10/02/20
742,000
100.00
742
745
Flagstar
Mortgage
Trust
04/13/18
105,198
98.65
104
107
Flatiron
CLO,
Ltd.
11/21/19
1,000,000
100.09
1,001
1,000
Freddie
Mac
Seasoned
Credit
Risk
Transfer
Trust
03/05/20
720,000
105.23
758
727
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
10/13/20
678,000
100.00
678
679
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
12/16/20
270,000
98.19
265
265
Fresenius
Medical
Care
US
Finance
II,
Inc.
06/16/16
110,000
102.24
112
123
Fresenius
Medical
Care
US
Finance
II,
Inc.
09/19/17
541,000
103.86
562
570
Gazprom
PJSC
Via
Gaz
Capital
SA
02/01/19
672,000
103.77
697
713
GFL
Environmental,
Inc.
04/22/20
70,000
100.00
70
73
Glencore
Finance
Canada,
Ltd.
08/04/20
667,000
121.80
812
845
Glencore
Funding
LLC
10/12/16
40,000
100.84
40
45
Glencore
Funding
LLC
09/13/17
220,000
100.44
221
249
Glencore
Funding
LLC
01/16/19
50,000
94.85
47
56
Glencore
Funding
LLC
03/05/19
400,000
100.68
403
440
Goldentree
Loan
Management
US
CLO
2,
Ltd.
10/26/18
1,300,000
100.03
1,300
1,300
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
102.87
404
393
GS
Mortgage
Securities
Corp.
II
06/06/18
490,000
100.00
490
423
GS
Mortgage
Securities
Trust
07/20/16
235,000
111.57
262
255
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
112
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)
$
GS
Mortgage
Securities
Trust
05/31/19
630,000
100.00
630
629
Guardian
Life
Global
Funding
06/16/20
50,000
99.92
50
51
Hanesbrands,
Inc.
08/10/18
10,000
98.53
10
10
Hanesbrands,
Inc.
08/13/18
70,000
101.72
71
76
Hanesbrands,
Inc.
04/30/20
80,000
100.36
80
85
Hawaii
Hotel
Trust
05/16/19
940,000
100.00
940
901
Heineken
NV
10/22/19
710,000
101.56
721
735
Hertz
Vehicle
Financing
II,
LP
10/30/20
484,000
99.88
483
486
Hilton
Domestic
Operating
Co.,
Inc.
04/16/20
40,000
100.00
40
44
Hilton
Domestic
Operating
Co.,
Inc.
04/16/20
120,000
100.29
120
128
Hilton
USA
Trust
11/22/16
1,256,000
89.43
1,150
1,266
Hilton
USA
Trust
11/22/16
584
,000
89.43
534
588
Hilton
USA
Trust
05/26/17
226,000
99.72
225
226
HMH
Trust
06/09/17
1,170,000
99.98
1,170
993
Hospitality
Mortgage
Trust
05/16/19
1,216,234
100.00
1,216
1,170
ICICI
Bank,
Ltd.
09/06/18
782,000
101.25
792
852
Innogy
Finance
BV
12/02/20
621,000
147.11
914
925
Intesa
Sanpaolo
SpA
07/10/17
400,000
100.13
401
414
Intesa
Sanpaolo
SpA
01/05/18
200,000
99.89
200
209
Intesa
Sanpaolo
SpA
04/22/19
846,000
96.38
815
933
Intesa
Sanpaolo
SpA
06/22/20
292,000
103.92
303
319
Invitation
Homes
Trust
09/09/20
1,372,731
99.62
1,368
1,369
JPMorgan
Mortgage
Trust
03/23/18
652,426
100.93
663
668
JPMorgan
Mortgage
Trust
03/23/18
334,027
100.93
340
342
JPMorgan
Mortgage
Trust
04/25/18
267,476
97.92
262
274
JPMorgan
Mortgage
Trust
04/25/18
114
,
214
97.92
112
117
JPMorgan
Mortgage
Trust
05/15/20
498,721
103.30
515
508
KazMunayGas
National
Co.
JSC
04/17/18
200,000
100.00
200
247
KKR
Group
Finance
Co.
II
LLC
02/20/15
10,000
109.47
11
13
Kraft
Heinz
Foods
Co.
04/14/20
261,000
103.83
271
304
Kraft
Heinz
Foods
Co.
05/04/20
80,000
100.00
80
101
Kraft
Heinz
Foods
Co.
05/04/20
30,000
100.00
30
33
Kuwait
Government
International
Bond
03/13/17
210,000
99.35
209
239
Lamb
Weston
Holdings,
Inc.
12/01/16
60,000
99.76
60
63
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
1,016
LCM
XXV,
Ltd.
07/10/17
1,124,000
100.00
1,124
1,123
Legacy
Mortgage
Asset
Trust
05/23/19
390,942
100.00
391
393
Legacy
Mortgage
Asset
Trust
06/01/20
666,232
98.47
656
667
Lloyds
Bank
PLC
09/03/20
681,000
117.23
798
786
Lloyds
Banking
Group
PLC
06/22/20
108,000
111.83
121
137
LSTAR
Securities
Investment,
Ltd.
05/17/19
350,122
100.00
350
349
Lukoil
International
Finance
BV
09/19/17
682,000
103.30
704
732
Madison
Park
Funding
XIII,
Ltd.
11/07/19
574,000
99.68
572
571
Madison
Park
Funding
XVIII,
Ltd.
12/01/17
1,922,000
99.81
1,918
1,921
Magnetite
XVIII,
Ltd.
10/31/18
1,488,000
100.00
1,488
1,486
Marks
&
Spencer
PLC
09/25/19
170,000
114.19
194
189
Mars,
Inc.
03/26/19
30,000
99.75
30
34
Mars,
Inc.
03/26/19
60,000
99.95
60
65
Midwest
Connector
Capital
Co.
LLC
06/04/19
267,000
100.91
269
272
Midwest
Connector
Capital
Co.
LLC
06/10/20
769,000
104.29
802
788
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets,
Ltd.
06/25/20
120,000
98.82
119
129
ML-CFC
Commercial
Mortgage
Trust
08/05/16
98,816
82.61
82
55
Morgan
Stanley
Capital
I
Trust
07/19/18
1,955,000
100.00
1,955
1,859
Morgan
Stanley
Capital
I
Trust
08/15/18
1,668,666
100.00
1,669
1,510
Morgan
Stanley
Capital
I
Trust
04/24/19
350,000
100.00
350
337
Morgan
Stanley
Capital
I
Trust
12/12/19
1,970,000
99.45
1,959
1,857
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
5,418,000
0.57
31
31
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
8,761,000
2.16
190
189
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
1,500,000
97.35
1,460
1,469
MSCG
Trust
05/19/15
255,000
101.32
258
251
National
Bank
of
Canada
10/05/20
780,000
102.91
803
804
National
Securities
Clearing
Corp.
04/16/20
250,000
99.93
250
255
Natixis
Commercial
Mortgage
Securities
Trust
08/29/19
440,000
102.77
452
437
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
113
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)
$
Navient
Private
Education
Refi
Loan
Trust
11/03/20
1,052,000
99.99
1,052
1,063
Navient
Student
Loan
Trust
07/20/20
830,399
99.99
830
839
Navient
Student
Loan
Trust
07/23/20
3,809,963
101.05
3,851
3,888
NBK
SPC,
Ltd.
09/30/19
714,000
100.40
717
732
Nestle
Holdings,
Inc.
01/03/20
698,000
103.59
723
752
New
Residential
Mortgage
Loan
Trust
09/09/19
407,663
100.00
408
414
New
York
Life
Global
Funding
06/17/20
90,000
99.91
90
91
NGPL
PipeCo
LLC
09/26/19
553,000
128.77
712
747
Nissan
Motor
Acceptance
Corp.
09/10/20
300,000
100.00
300
331
Nissan
Motor
Acceptance
Corp.
09/10/20
280,000
100.00
280
300
Nomura
Resecuritization
Trust
07/22/16
1,096,254
60.18
660
958
Nordea
Bank
AB
06/04/19
265,000
100.71
267
269
Northern
Natural
Gas
Co.
08/02/18
631,000
108.92
687
766
NXP
BV
/
NXP
Funding
LLC
/
NXP,
Inc.
04/29/20
80,000
100.46
80
86
Oak
Street
Investment
Grade
Net
Lease
Fund
11/06/20
259,622
100.00
260
262
Oaktown
Re,
Ltd.
10/19/20
1,018,000
100.00
1,018
1,019
OneMain
Financial
Issuance
Trust
08/13/20
1,529,000
100.06
1,530
1,556
OneMain
Financial
Issuance
Trust
10/21/20
555,000
105.15
584
585
OneMain
Financial
Issuance
Trust
10/21/20
500,000
106.75
534
540
Park
Aerospace
Holdings,
Ltd.
03/06/19
4,000
101.10
4
4
Parsley
Energy
LLC
09/25/20
10,000
92.47
9
11
Parsley
Energy
LLC
/
Parsley
Finance
Corp.
09/30/20
20,000
100.05
20
21
PFS
Financing
Corp.
10/14/20
1,287,000
99.99
1,287
1,294
PMT
Credit
Risk
Transfer
Trust
03/21/19
237,304
100.00
237
219
PMT
Credit
Risk
Transfer
Trust
10/11/19
371,102
100.00
371
367
Preston
Ridge
Partners
Mortgage
LLC
02/14/20
2,376,202
99.85
2,373
2,382
Preston
Ridge
Partners
Mortgage
LLC
09/30/20
558,605
100.00
559
563
Preston
Ridge
Partners
Mortgage
LLC
12/01/20
679,345
100.00
679
680
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
09/13/19
60,000
101.66
61
66
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
09/20/19
70,000
102.01
71
75
Principal
Life
Global
Funding
II
06/16/20
40,000
99.93
40
41
Prosus
NV
06/29/17
250,000
100.00
250
287
Provincia
de
Buenos
Aires
02/08/17
140,000
99.83
140
57
Qatar
Government
International
Bond
10/03/19
210,000
123.50
259
287
Qatar
Government
International
Bond
04/07/20
360,000
100.00
360
469
Radnor
RE,
Ltd.
01/21/20
567,000
100.00
567
566
RBS
Commercial
Funding,
Inc.
Trust
01/19/16
200,000
1
03
.
53
207
211
RESIMAC
Premier
09/23/20
911,950
100.00
912
912
Resorts
World
Las
Vegas
LLC
/
RWLV
Capital,
Inc.
07/07/20
809,000
98.56
797
831
Riserva
CLO,
Ltd.
06/10/19
940,000
100.00
940
940
Roche
Holdings,
Inc.
01/03/20
669,000
100.04
669
679
Rockies
Express
Pipeline
LLC
06/23/20
306,000
94.27
288
312
Rockies
Express
Pipeline
LLC
06/25/20
81,000
94.02
76
84
Royal
Caribbean
Cruises,
Ltd.
11/06/20
337,000
114.87
387
394
Sabal
Trail
Transmission
LLC
08/02/18
663,000
105.28
698
760
SABIC
Capital
II
BV
07/07/20
737,000
105.98
781
794
Sands
China,
Ltd.
06/02/20
200,000
99.91
200
213
Santander
UK
Group
Holdings
PLC
03/05/19
701,000
102.06
715
790
Santander
UK
Group
Holdings
PLC
05/14/19
238,000
102.65
244
263
Saudi
Arabian
Oil
Co.
04/07/20
768,000
98.83
759
815
SBA
Tower
Trust
07/08/20
1,025,000
100.00
1,025
1,032
Schlumberger
Holdings
Corp.
12/10/15
40,000
99.96
40
45
Schneider
Electric
SE
02/04/19
800,000
101.26
810
835
Sequoia
Mortgage
Trust
10/21/16
246,581
102.92
254
252
Shackleton
CLO,
Ltd.
04/04/18
930,000
100.00
930
922
Siemens
Financieringsmaatschappij
NV
06/04/20
769,000
102.72
790
790
SMB
Private
Education
Loan
Trust
06/04/19
190,000
100.00
190
191
Societe
Generale
SA
12/11/19
700,000
105.89
741
773
SoFi
Professional
Loan
Program
Trust
12/12/19
730,000
103.59
756
761
SoFi
Professional
Loan
Program
Trust
07/20/20
681,160
102.16
696
696
Solar
Star
Funding
LLC
04/07/20
631,926
112.10
708
698
Spain
Government
International
Bond
05/20/20
EUR
840,000
125.21
1,052
1,217
Spirit
Loyalty
Cayman,
Ltd.
/
Spirit
IP
Cayman
Ltd
09/02/20
150,000
101.84
153
168
SpringCastle
America
Funding
LLC
09/16/20
3,625,058
100.00
3,625
3,651
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
114
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)
$
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
37,500
99.88
37
38
Standard
Chartered
PLC
05/13/20
447,000
103.74
464
485
Standard
Chartered
PLC
06/22/20
111,000
111.48
124
144
Sunrun
Callisto
Issuer,
LLC
10/17/19
585,346
99.95
585
625
Swedbank
AB
05/26/20
200,000
99.91
200
204
Swedbank
AB
10/02/20
624,000
102.80
641
642
TAL
Advantage
VII
LLC
09/09/20
2,199,701
100.03
2,200
2,219
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
08/11/20
50,000
100.00
50
54
Teachers
Insurance
&
Annuity
Association
of
America
06/14/16
340,000
115.00
391
460
Tennessee
Gas
Pipeline
Co.
LLC
02/19/20
210,000
99.93
210
224
Tesco
PLC
09/03/20
623,000
130.59
814
804
Textainer
Marine
Containers
VII,
Ltd.
09/11/20
1,666,701
102.37
1,706
1,714
Textainer
Marine
Containers,
Ltd.
09/08/20
1,539,315
100.01
1,539
1,561
Tharaldson
Hotel
Portfolio
Trust
01/22/18
243,024
99.95
243
236
THL
Credit
Wind
River
CLO,
Ltd.
10/02/17
985,366
100.00
985
985
T-Mobile
USA,
Inc.
04/02/20
300,000
99.32
298
347
T-Mobile
USA,
Inc.
04/14/20
30,000
105.57
32
34
T-Mobile
USA,
Inc.
04/20/20
490,000
104.51
512
541
T-Mobile
USA,
Inc.
07/06/20
784,000
101.32
794
823
Towd
Point
Mortgage
Trust
06/25/18
1,505,292
100.92
1,519
1,519
Towd
Point
Mortgage
Trust
07/22/16
112,876
99.86
113
114
Towd
Point
Mortgage
Trust
10/25/19
1,646,208
105.76
1,741
1,769
Towd
Point
Mortgage
Trust
08/17/20
3,051,270
101.83
3,107
3,102
TransDigm
,
Inc.
04/09/20
80,000
102.24
82
85
TransDigm
,
Inc.
04/09/20
20,000
107.03
21
22
Trust
Fibra
Uno
09/20/17
685,000
105.02
719
772
TSMC
Global,
Ltd.
09/23/20
200,000
99.91
200
199
UBS
Group
AG
03/16/17
270,000
100.00
270
281
UBS
Group
AG
01/28/19
660,000
102.29
675
724
UBS
Group
AG
04/14/20
1,017,000
100.76
1,030
1,035
UBS
Group
AG
05/26/20
200,000
102.55
205
207
UBS
Group
AG
07/07/20
694,000
113.31
786
802
UniCredit
SpA
01/08/19
1,042,000
101.69
1,065
1,098
Upjohn,
Inc.
07/08/20
729,000
109.12
795
834
USAA
Capital
Corp.
04/14/20
150,000
99.73
150
158
Vistra
Operations
Co.
LLC
06/04/19
708,000
101.34
717
803
VOC
Escrow,
Ltd.
08/07/18
60,000
97.46
58
60
Volkswagen
Group
of
America
Finance
LLC
10/02/20
782,000
102.94
805
807
Voya
CLO,
Ltd.
02/18/20
2,448,568
100.00
2,449
2,433
WinWater
Mortgage
Loan
Trust
03/29/17
297,430
102.35
304
307
Woori
Bank
04/22/20
734,000
105.28
773
817
Wynn
Macau,
Ltd.
12/15/20
200,000
102.99
206
210
184,845
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
Australia
10
Year
Government
Bond
Futures
303
AUD
44,611
03/21
131
Canadian
10
Year
Government
Bond
Futures
60
CAD
8,946
03/21
—
EURO-BTP
Futures
67
EUR
10,185
03/21
85
Euro-OAT
Futures
19
EUR
3,189
03/21
3
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
115
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
United
States
2
Year
Treasury
Note
Futures
179
USD
39,555
03/21
37
United
States
5
Year
Treasury
Note
Futures
709
USD
89,450
03/21
194
United
States
10
Year
Treasury
Note
Futures
943
USD
130,209
03/21
190
United
States
10
Year
Ultra
Treasury
Note
Futures
43
USD
6,723
03/21
(4)
United
States
Treasury
Long
Bond
Futures
231
USD
40,006
03/21
(364)
United
States
Treasury
Ultra
Bond
Futures
193
USD
41,218
03/21
(457)
Short
Positions
Australia
10
Year
Government
Bond
Futures
23
AUD
3,386
03/21
11
Euro-
Bobl
Futures
53
EUR
7,165
03/21
8
Euro-Bund
Futures
270
EUR
47,963
03/21
(204)
Eurodollar
Futures
217
USD
54,158
03/21
(81)
Eurodollar
Futures
64
USD
15,974
06/21
(1)
Eurodollar
Futures
158
USD
39,417
12/21
(246)
Euro-OAT
Futures
16
EUR
2,686
03/21
(1)
Long
Gilt
Futures
144
GBP
19,518
03/21
(295)
United
States
2
Year
Treasury
Note
Futures
135
USD
29,832
03/21
(27)
United
States
5
Year
Treasury
Note
Futures
54
USD
6,813
03/21
(16)
United
States
10
Year
Treasury
Note
Futures
140
USD
19,331
03/21
(25)
United
States
10
Year
Ultra
Treasury
Note
Futures
28
USD
4,378
03/21
14
United
States
Treasury
Long
Bond
Futures
22
USD
3,810
03/21
27
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(1,021)
Options
Written
Amounts
in
thousands
(except
contract
amounts)
Description
Counterparty
Call/Put
Number
of
Contracts
Strike
Price
Notional
Amount
Expiration
Date
Fair
Value
$
United
States
10
Year
Treasury
Note
Futures
Bank
of
America
Call
9
138.25
USD
1,2
44
01/22/21
(4)
United
States
10
Year
Treasury
Note
Futures
Bank
of
America
Put
16
137.00
USD
2,1
92
01/22/21
(3)
United
States
Treasury
Bond
Futures
Bank
of
America
Call
12
174.00
USD
2,0
88
01/22/21
(13)
United
States
Treasury
Bond
Futures
Bank
of
America
Call
6
176.00
USD
1,05
6
01/22/21
(2)
United
States
Treasury
Bond
Futures
Bank
of
America
Put
4
170.00
USD
6
80
01/22/21
(2)
Total
Liability
for
Options
Written
(premiums
received
$35)
(24)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
116
AUD
158
03/10/21
6
Bank
of
America
USD
476
AUD
619
03/10/21
2
Bank
of
America
USD
282
NOK
2,412
03/10/21
(1)
Bank
of
America
AUD
20,942
USD
15,303
03/10/21
(852)
Bank
of
America
NOK
193
USD
22
03/10/21
(1)
Bank
of
America
NOK
68,296
USD
7,531
03/10/21
(432)
Bank
of
Montreal
USD
3,555
NOK
31,200
03/17/21
82
Bank
of
Montreal
CAD
2,400
USD
1,879
03/17/21
(7)
Bank
of
Montreal
SEK
15,400
USD
1,818
03/17/21
(55)
Bank
of
New
York
USD
3,561
NOK
31,200
03/17/21
77
Bank
of
New
York
CAD
2,400
USD
1,877
03/17/21
(9)
Bank
of
New
York
SEK
15,400
USD
1,820
03/17/21
(53)
BNP
Paribas
USD
1,184
BRL
6,647
01/19/21
95
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
116
Strategic
Bond
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
BNP
Paribas
USD
1,898
MXN
41,194
01/19/21
169
BNP
Paribas
USD
361
RUB
27,719
01/19/21
14
Citigroup
USD
651
AUD
860
01/19/21
12
Citigroup
USD
3,703
GBP
2,765
03/10/21
80
Citigroup
USD
18,980
GBP
14,310
03/10/21
596
Citigroup
USD
18
JPY
1,890
01/19/21
—
Citigroup
USD
1,761
JPY
183,384
01/19/21
15
Citigroup
USD
7,674
NZD
11,135
03/10/21
340
Citigroup
USD
271
RUB
20,089
01/19/21
—
Citigroup
USD
321
RUB
24,664
01/19/21
12
Citigroup
USD
643
RUB
49,410
01/19/21
25
Citigroup
EUR
—
USD
—
01/19/21
—
Citigroup
EUR
1,180
USD
1,393
01/19/21
(49)
Citigroup
EUR
1,499
USD
1,762
01/19/21
(69)
Citigroup
EUR
2,172
USD
2,670
01/19/21
16
Citigroup
GBP
57
USD
77
03/10/21
—
Citigroup
MXN
6,932
USD
347
01/19/21
—
Citigroup
NZD
185
USD
129
03/10/21
(4)
Citigroup
NZD
196
USD
141
03/10/21
—
Commonwealth
Bank
of
Australia
USD
7,585
JPY
790,553
03/10/21
77
Commonwealth
Bank
of
Australia
USD
280
SEK
2,287
03/10/21
(1)
Commonwealth
Bank
of
Australia
JPY
394,530
USD
3,824
03/10/21
—
Commonwealth
Bank
of
Australia
SEK
65,449
USD
7,681
03/10/21
(280)
Goldman
Sachs
USD
3,843
CAD
5,083
01/19/21
150
Goldman
Sachs
USD
881
GBP
682
01/19/21
51
Goldman
Sachs
USD
750
JPY
79,355
01/19/21
19
Goldman
Sachs
USD
281
RUB
20,830
01/19/21
—
Goldman
Sachs
EUR
508
USD
599
01/19/21
(22)
Goldman
Sachs
MXN
10,980
USD
550
01/19/21
—
Goldman
Sachs
RUB
16,322
USD
208
01/19/21
(12)
JPMorgan
Chase
USD
953
AUD
1,259
01/19/21
18
JPMorgan
Chase
USD
642
CHF
581
02/17/21
16
JPMorgan
Chase
USD
3,445
COP
11,791,594
01/20/21
7
JPMorgan
Chase
USD
3,599
GBP
2,658
02/22/21
37
JPMorgan
Chase
USD
20
HUF
5,876
03/17/21
—
JPMorgan
Chase
USD
283
INR
20,944
01/19/21
4
JPMorgan
Chase
USD
2,530
JPY
261,103
02/22/21
—
JPMorgan
Chase
USD
1,484
KRW
1,653,766
01/12/21
36
JPMorgan
Chase
USD
3,565
NOK
31,200
03/17/21
73
JPMorgan
Chase
USD
3,880
NOK
34,268
03/17/21
115
JPMorgan
Chase
USD
641
NZD
915
01/08/21
18
JPMorgan
Chase
USD
1,199
RUB
87,757
01/19/21
(13)
JPMorgan
Chase
USD
5,165
SEK
43,681
03/17/21
148
JPMorgan
Chase
USD
1,413
THB
42,899
01/13/21
19
JPMorgan
Chase
AUD
1,942
USD
1,472
02/22/21
(26)
JPMorgan
Chase
CAD
1,162
USD
887
02/17/21
(26)
JPMorgan
Chase
CAD
2,400
USD
1,877
03/17/21
(8)
JPMorgan
Chase
CHF
5,280
USD
5,779
02/17/21
(193)
JPMorgan
Chase
COP
2,151,995
USD
628
01/19/21
(2)
JPMorgan
Chase
COP
12,374,759
USD
3,410
01/19/21
(213)
JPMorgan
Chase
EUR
6,598
USD
8,062
02/22/21
(7)
JPMorgan
Chase
HKD
644
USD
83
02/17/21
—
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
117
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
JPMorgan
Chase
IDR
1,762,046
USD
123
01/12/21
(3)
JPMorgan
Chase
IDR
1,762,046
USD
123
01/19/21
(3)
JPMorgan
Chase
IDR
12,517,778
USD
880
01/25/21
(18)
JPMorgan
Chase
IDR
12,517,778
USD
881
01/26/21
(17)
JPMorgan
Chase
MXN
42,316
USD
2,084
03/17/21
(26)
JPMorgan
Chase
NOK
2,965
USD
339
03/17/21
(6)
JPMorgan
Chase
NZD
497
USD
351
01/08/21
(6)
JPMorgan
Chase
NZD
6,748
USD
4,440
01/08/21
(416)
JPMorgan
Chase
PEN
1,732
USD
477
01/11/21
(1)
JPMorgan
Chase
PEN
7,313
USD
2,043
01/12/21
23
JPMorgan
Chase
PEN
2,196
USD
609
01/13/21
2
JPMorgan
Chase
PEN
2,389
USD
666
01/19/21
6
JPMorgan
Chase
PEN
1,732
USD
482
01/20/21
4
JPMorgan
Chase
SEK
7,648
USD
914
03/17/21
(16)
JPMorgan
Chase
SEK
15,400
USD
1,821
03/17/21
(53)
JPMorgan
Chase
SGD
9,129
USD
6,761
02/17/21
(147)
JPMorgan
Chase
THB
25,635
USD
848
01/11/21
(7)
JPMorgan
Chase
THB
88,244
USD
2,902
01/12/21
(43)
JPMorgan
Chase
THB
25,635
USD
854
01/20/21
(2)
Royal
Bank
of
Canada
USD
102
CAD
133
03/10/21
2
Royal
Bank
of
Canada
USD
15,039
CAD
19,679
03/10/21
424
Royal
Bank
of
Canada
USD
10,028
EUR
8,141
03/10/21
(69)
Royal
Bank
of
Canada
USD
18,800
EUR
15,799
03/10/21
530
Royal
Bank
of
Canada
USD
3,571
NOK
31,200
03/17/21
67
Royal
Bank
of
Canada
CAD
183
USD
144
03/10/21
—
Royal
Bank
of
Canada
CAD
2,400
USD
1,878
03/17/21
(8)
Royal
Bank
of
Canada
EUR
8,329
USD
9,938
03/10/21
(253)
Royal
Bank
of
Canada
SEK
15,400
USD
1,822
03/17/21
(52)
Standard
Chartered
USD
3,560
NOK
31,200
03/17/21
77
Standard
Chartered
CAD
2,400
USD
1,877
03/17/21
(9)
Standard
Chartered
SEK
15,400
USD
1,820
03/17/21
(53)
UBS
USD
443
CHF
391
03/10/21
(1)
UBS
CHF
400
USD
441
03/10/21
(12)
UBS
CHF
20,340
USD
22,395
03/10/21
(623)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(å)
(715)
Interest
Rate
Swap
Contracts
Amounts
in
thousands
Counterparty
Notional
Amount
Fund
Receives
Fund
Pays
Termination
Date
Premiums
Paid
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
Bank
of
America
USD
8,197
0.190%
(3)
Three
Month
LIBOR
(2)
06/15/22
—
—
—
Bank
of
America
USD
2,848
0.100%
(3)
Federal
Fund
Effective
Rate
(2)
11/30/24
2
(9)
(7)
Bank
of
America
USD
13,203
0.380%
(3)
Three
Month
LIBOR
(2)
02/28/25
3
17
20
Bank
of
America
USD
5,496
0.440%
(3)
Three
Month
LIBOR
(2)
11/02/25
6
3
9
Bank
of
America
USD
13,265
0.840%
(3)
Three
Month
LIBOR
(2)
11/27/25
(6)
7
1
Bank
of
America
USD
1,373
Three
Month
LIBOR
(2)
0.450%
(3)
05/15/27
(4)
16
12
Bank
of
America
USD
6,024
Federal
Fund
Effective
Rate
(2)
0.260%
(3)
05/15/27
(20)
76
56
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
118
Strategic
Bond
Fund
Interest
Rate
Swap
Contracts
Amounts
in
thousands
Counterparty
Notional
Amount
Fund
Receives
Fund
Pays
Termination
Date
Premiums
Paid
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
Bank
of
America
MXN
40,840
7.450%
(1)
Mexico
Interbank
28
Day
Deposit
Rate
(1)
07/18/29
17
310
327
Bank
of
America
USD
5,444
Three
Month
LIBOR
(2)
0.850%
(3)
11/02/30
(7)
36
29
Bank
of
America
USD
2,330
SOFR
(2)
0.560%
(3)
07/20/45
17
269
286
Bank
of
America
USD
880
SOFR
(2)
0.740%
(3)
08/19/45
—
73
73
Bank
of
America
USD
1,022
Three
Month
LIBOR
(2)
0.800%
(3)
11/15/45
7
123
130
Bank
of
America
USD
181
Three
Month
LIBOR
(2)
1.225%
(3)
02/15/47
—
7
7
Bank
of
America
USD
540
Three
Month
LIBOR
(2)
1.200%
(3)
02/15/47
3
20
23
Bank
of
America
USD
1,980
Three
Month
LIBOR
(2)
1.000%
(3)
02/15/47
24
153
177
Bank
of
America
USD
1,009
Three
Month
LIBOR
(2)
0.900%
(3)
03/17/50
17
109
126
Bank
of
America
USD
1,422
Three
Month
LIBOR
(2)
1.200%
(3)
10/07/50
7
65
72
Bank
of
America
USD
998
1.290%
(3)
Three
Month
LIBOR
(2)
11/02/50
8
(36)
(28)
Citigroup
BRL
2,100
7.024%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
—
24
24
Citigroup
BRL
2,400
7.024%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
1
26
27
Citigroup
BRL
2,631
7.024%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
2
28
30
JPMorgan
Chase
BRL
1,700
7.044%
(5)
Brazil
Interbank
Deposit
Rate
(5)
01/04/27
—
19
19
JPMorgan
Chase
HUF
269,360
Six
Month
BUBOR
(3)
0.930%
(4)
04/05/27
—
10
10
JPMorgan
Chase
HUF
627,060
Six
Month
BUBOR
(3)
1.848%
(4)
04/05/27
—
(110)
(110)
Total
Open
Interest
Rate
Swap
Contracts
(å)
77
1,236
1,313
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
NA
High
Yield
Index
Bank
of
America
Sell
USD
5,140
5.000%
(2)
12/20/25
219
268
487
CDX
NA
High
Yield
Index
Goldman
Sachs
Purchase
USD
9,000
(5.000%)
(2)
12/20/25
(365)
(487)
(852)
CDX
NA
Investment
Grade
Index
Bank
of
America
Sell
USD
1,704
1.000%
(2)
12/20/25
40
2
42
CDX
NA
Investment
Grade
Index
Bank
of
America
Sell
USD
2,082
1.000%
(2)
06/20/25
11
23
34
Total
Open
Credit
Indices
Contracts
(å)
(95)
(194)
(289)
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
119
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
$
—
$
68,872
$
—
$
—
$
68,872
7.5
Corporate
Bonds
and
Notes
—
217,2
46
—
—
217,2
46
23.7
International
Debt
—
95,070
—
—
95,070
10.4
Loan
Agreements
—
11,021
—
—
11,021
1.2
Mortgage-Backed
Securities
—
210,311
—
—
210,311
22.9
Non-US
Bonds
—
37,553
—
—
37,553
4.1
United
States
Government
Treasuries
—
133,880
—
—
133,880
14.6
Common
Stocks
Financial
Services
—
—
—
—
—
Technology
—
—
—
—
—
Options
Purchased
4
—
—
—
4
—
*
Short-Term
Investments
—
56,4
53
—
83,168
139,6
21
15.2
Total
Investments
4
830,40
6
—
83,168
913,57
8
99.6
Other
Assets
and
Liabilities,
Net
0.4
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
700
—
—
—
700
0.
1
Foreign
Currency
Exchange
Contracts
—
3,46
4
—
—
3,46
4
0.
4
Interest
Rate
Swap
Contracts
—
1,458
—
—
1,458
0.
2
Credit
Default
Swap
Contracts
—
563
—
—
563
0.1
A
Liabilities
Futures
Contracts
(
1
,
721
)
—
—
—
(
1
,
721
)
(0.
2
)
Options
Written
(24)
—
—
—
(24)
(
—
)
*
Foreign
Currency
Exchange
Contracts
—
(4,1
79
)
—
—
(4,1
79
)
(0.
5
)
Interest
Rate
Swap
Contracts
—
(145)
—
—
(145)
(
—
)
*
Credit
Default
Swap
Contracts
—
(852)
—
—
(852)
(0.1)
Total
Other
Financial
Instruments
**
$
(
1
,0
4
5
)
$
309
$
—
$
—
$
(7
3
6
)
*
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
120
Strategic
Bond
Fund
Investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
a
fair
value
for
the
period
ended
December
31,
2020,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Country
Exposure
Fair
Value
$
Argentina
................................................................................
441
Australia
.................................................................................
1,407
Austria
....................................................................................
286
Brazil
......................................................................................
3,579
Canada
....................................................................................
16,899
Cayman
Islands
.......................................................................
381
Chile
.......................................................................................
1,662
China
......................................................................................
592
Colombia
.................................................................................
5,237
Denmark
.................................................................................
2,705
Finland
...................................................................................
269
France
.....................................................................................
7,944
Germany
.................................................................................
667
India
.......................................................................................
2,448
Indonesia
................................................................................
4,698
Ireland
....................................................................................
2,549
Israel
.......................................................................................
281
Italy
........................................................................................
9,104
Japan
......................................................................................
1,454
Kazakhstan
.............................................................................
247
Kuwait
....................................................................................
239
Liberia
....................................................................................
440
Luxembourg
............................................................................
1,827
Macao
.....................................................................................
1,345
Malaysia
..................................................................................
3,635
Mexico
....................................................................................
13,496
Netherlands
............................................................................
10,988
Panama
...................................................................................
1,610
Peru
........................................................................................
2,882
Poland
.....................................................................................
558
Qatar
.......................................................................................
756
Russia
.....................................................................................
4,705
Saudi
Arabia
...........................................................................
1,609
Singapore
................................................................................
6,945
South
Korea
............................................................................
817
Spain
.......................................................................................
4,325
Sweden
....................................................................................
1,285
Switzerland
.............................................................................
4,495
Thailand
..................................................................................
230
United
Arab
Emirates
.............................................................
1,828
United
Kingdom
......................................................................
13,381
United
States
...........................................................................
773,133
Virgin
Islands,
British
.............................................................
199
Total
Investments
....................................................................
913,578
Russell
Investment
Funds
Strategic
Bond
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
121
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Investments,
at
fair
value*
$
—
$
—
$
4
Unrealized
appreciation
on
foreign
currency
exchange
contracts
—
3,464
—
Variation
margin
on
futures
contracts**
—
—
700
Interest
rate
swap
contracts,
at
fair
value
—
—
1,458
Credit
default
swap
contracts,
at
fair
value
563
—
—
Total
$
563
$
3,464
$
2,
162
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts**
$
—
$
—
$
1
,
721
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
4,179
—
Options
written,
at
fair
value
—
—
24
Interest
rate
swap
contracts,
at
fair
value
—
—
145
Credit
default
swap
contracts,
at
fair
value
852
—
—
Total
$
852
$
4,179
$
1
,
890
Derivatives
not
accounted
for
as
hedging
instruments
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Investments***
$
—
$
—
$
(269)
Futures
contracts
—
—
26,277
Options
written
—
—
1,030
Interest
rate
swap
contracts
—
—
(5,7
43
)
Credit
default
swap
contracts
(1,2
44
)
—
—
Foreign
currency
exchange
contracts
—
(2,179)
—
Total
$
(1,2
44
)
$
(2,179)
$
21,
295
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Investments****
$
—
$
—
$
(5)
Futures
contracts
—
—
1,80
8
Options
written
—
—
(8)
Interest
rate
swap
contracts
—
—
(32)
Credit
default
swap
contracts
(7
25
)
—
—
Foreign
currency
exchange
contracts
—
(409)
—
Total
$
(7
25
)
$
(409)
$
1,
7
6
3
*
Fair
value
of
purchased
options.
**
Includes
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
***
Includes
net
realized
gain
(loss)
on
purchased
options
as
reported
in
the
Statement
of
Operations.
****
Includes
net
change
in
unrealized
appreciation
(depreciation)
on
purchased
options
as
reported
in
the
Statement
of
Operations.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Strategic
Bond
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
122
Strategic
Bond
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
Options
Purchased
Contracts
Investments,
at
fair
value
$
4
$
—
$
4
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
3,464
—
3,464
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
1,458
—
1,458
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
563
—
563
Total
Financial
and
Derivative
Assets
5,489
—
5,489
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(1,916)
—
(1,916)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
3,573
$
—
$
3,573
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
$
75
$
3
$
72
$
—
Bank
of
Montreal
139
7
—
132
Bank
of
New
York
134
60
—
74
BNP
Paribas
572
—
—
572
Citigroup
640
16
100
524
Commonwealth
Bank
of
Australia
80
1
—
79
Goldman
Sachs
437
9
—
428
JPMorgan
Chase
506
302
—
204
Royal
Bank
of
Canada
706
61
—
645
Standard
Chartered
150
—
—
150
State
Street
134
—
—
134
Total
$
3,573
$
459
$
172
$
2,942
Russell
Investment
Funds
Strategic
Bond
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
123
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
$
4,179
$
—
$
4,179
Options
Written
Contracts
Options
written,
at
fair
value
24
—
24
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
145
—
145
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
852
—
852
Total
Financial
and
Derivative
Liabilities
5,200
—
5,200
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(911)
—
(911)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
4,289
$
—
$
4,289
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
$
2,198
$
3
$
—
$
2,195
Bank
of
Montreal
60
7
—
53
Bank
of
New
York
60
60
—
—
Citigroup
85
16
—
69
Commonwealth
Bank
of
Australia
214
1
—
213
Goldman
Sachs
28
9
18
1
JPMorgan
Chase
829
302
52
7
—
Royal
Bank
of
Canada
297
61
—
236
Standard
Chartered
61
—
—
61
State
Street
32
—
—
32
UBS
425
—
—
425
Total
$
4,289
$
459
$
54
5
$
3,28
5
^ 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.
124
Strategic
Bond
Fund
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
878,566
Investments,
at
fair
value(>)
...........................................................................................................................................................
913,578
Cash
...............................................................................................................................................................................................
3,005
Foreign
currency
holdings(^)
.........................................................................................................................................................
2,639
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
3,464
Receivables:
Dividends
and
interest
.......................................................................................................................................................
4,668
Dividends
from
affiliated
funds
..........................................................................................................................................
7
Investments
sold
................................................................................................................................................................
5,565
Fund
shares
sold
................................................................................................................................................................
247
From
broker(a)(b)(c)
...........................................................................................................................................................
11,229
Variation
margin
on
futures
contracts
.................................................................................................................................
33
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
1,458
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
563
Total
assets
.................................................................................................................................................
946,456
Liabilities
Payables:
Due
to
broker
(d)
................................................................................................................................................................
1,004
Investments
purchased
......................................................................................................................................................
21,162
Fund
shares
redeemed
.......................................................................................................................................................
28
Accrued
fees
to
affiliates
....................................................................................................................................................
472
Other
accrued
expenses
.....................................................................................................................................................
356
Variation
margin
on
futures
contracts
.................................................................................................................................
1,045
Deferred
capital
gains
tax
liability
.....................................................................................................................................
20
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
4,179
Options
written,
at
fair
value(x)
......................................................................................................................................................
24
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
145
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
852
Total
liabilities
.............................................................................................................................................
29,287
Net
Assets
............................................................................................................................................................
$
917,169
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
125
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
33,7
8
2
Shares
of
beneficial
interest
...........................................................................................................................................................
84
3
Additional
paid-in
capital
..............................................................................................................................................................
882,5
4
4
Net
Assets
............................................................................................................................................................
$
917,169
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.88
Net
assets
...............................................................................................................................................................................
$
917,169,141
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
84,285,237
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
2,547
(x)
Premiums
received
on
options
written
$
35
(•)
Interest
rate
swap
contracts
-
premiums
paid
(received)
$
77
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(
95
)
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
$
83,168
(a)
Receivable
from
Broker
for
Futures
$
8,990
(b)
Receivable
from
Broker
for
Swaps
$
1,359
(c)
Receivable
from
Broker
for
Forwards
$
880
(d)
Due
to
Broker
for
Swaps
$
1,004
(#)
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.
126
Strategic
Bond
Fund
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
20
Dividends
from
affiliated
funds
.........................................................................................................................................
258
Interest
..............................................................................................................................................................................
22,169
Total
investment
income
...............................................................................................................................................................
22,447
Expenses
Advisory
fees
....................................................................................................................................................................
4,918
Administrative
fees
...........................................................................................................................................................
447
Custodian
fees
...................................................................................................................................................................
370
Transfer
agent
fees
............................................................................................................................................................
39
Professional
fees
...............................................................................................................................................................
172
Trustees’
fees
....................................................................................................................................................................
43
Printing
fees
......................................................................................................................................................................
117
Miscellaneous
...................................................................................................................................................................
2
4
Total
expenses
...............................................................................................................................................................................
6,130
Net
investment
income
(loss)
........................................................................................................................................................
16,317
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
17,8
57
Investments
in
affiliated
funds
..........................................................................................................................................
(6)
Futures
contracts
..............................................................................................................................................................
26,277
Options
written
.................................................................................................................................................................
1,030
Foreign
currency
exchange
contracts
................................................................................................................................
(2,179)
Interest
rate
swap
contracts
...............................................................................................................................................
(5,7
4
3)
Credit
default
swap
contracts
............................................................................................................................................
(1,2
44
)
Foreign
currency-related
transactions
...............................................................................................................................
462
Net
realized
gain
(loss)
..................................................................................................................................................................
3
6,4
54
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
16,950
Investments
in
affiliated
funds
..........................................................................................................................................
(7)
Futures
contracts
..............................................................................................................................................................
1,808
Options
written
.................................................................................................................................................................
(8)
Foreign
currency
exchange
contracts
................................................................................................................................
(409)
Interest
rate
swap
contracts
...............................................................................................................................................
(3
2
)
Credit
default
swap
contracts
............................................................................................................................................
(7
25
)
Foreign
currency-related
transactions
...............................................................................................................................
118
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
17,6
95
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
54,1
49
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
70,4
66
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
127
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
16,317
$
22,858
Net
realized
gain
(loss)
......................................................................................................................
36,4
54
35,561
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
17,6
95
20,909
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
70,4
66
79,328
Distributions
To
shareholders
.................................................................................................................................
(45,663)
(36,716)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(45,663)
(36,716)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(25,404)
(3,503)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(601
)
39,109
Net
Assets
Beginning
of
period
.................................................................................................................................
917,770
878,661
End
of
period
..........................................................................................................................................
$
917,1
69
$
917,770
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
4,785
$
52,480
2,937
$
30,89
5
Proceeds
from
reinvestment
of
distributions
4,221
45,66
3
3,485
36,71
6
Payments
for
shares
redeemed
(11,662)
(123,54
7
)
(6,759)
(71,114)
Total
increase
(decrease)
(2,656)
$
(25,404)
(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.
128
Strategic
Bond
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2020
10.56
.20
.68
.88
(.20)
(.36)
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
129
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.56)
10.88
8.43
917,169
.69
.69
1.8
2
92
(.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
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
130
Strategic
Bond
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
Advisory
fees
$
424,120
Administration
fees
38,556
Transfer
agent
fees
3,394
Trustee
fees
6,108
$
472,178
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
$
604,720
$
538,343
$
(6
)
$
(7
)
$
83,168
$
258
$
—
$
16,804
$
604,720
$
538,343
$
(6
)
$
(7
)
$
83,168
$
258
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
885,362,695
$
33,705,833
$
(5,546,694)
$
28,159,139
$
2,282,798
$
3,098,041
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
30,702
,077
$
14,960,631
$
—
$
33,102,127
$
3,613,267
$
—
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
Global
Real
Estate
Securities
Fund
131
Global
Real
Estate
Securities
Fund
Total
Return
1
Year
(5
.18)%
5
Years
4
.61%§
10
Years
5
.88%§
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(Net)
**
Total
Return
1
Year
(9
.04)%
5
Years
3
.74%§
10
Years
5
.44%§
MSCI
World
Index
(Net)
***
Total
Return
1
Year
15
.90%
5
Years
12
.19%§
10
Years
9
.87%§
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
132
Global
Real
Estate
Securities
Fund
The
Global
Real
Estate
Securities
Fund
(the
“Fund”)
employs
a
multi-manager
approach
whereby
Russell
Investment
Management,
LLC
(“RIM”)
manages
a
portion
of
the
Fund’s
assets
based
upon
model
portfolios
provided
by
multiple
non-
discretionary
money
managers.
The
Fund’s
money
managers
have
non-discretionary
assignments
pursuant
to
which
they
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
RIM
also
manages
the
portion
of
the
Fund's
assets
that
RIM
determines
not
to
manage
based
upon
model
portfolios
provided
by
the
Fund’s
money
managers.
RIM
may
change
the
Fund’s
asset
allocation
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
at
any
time,
subject
to
approval
by
the
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
the
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
As
of
December
31,
2020,
the
Fund
had
two
money
managers.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
current
income
and
long
term
capital
growth.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
lost
5.18%.
This
is
compared
to
the
Fund’s
benchmark,
the
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(Net),
which
lost
9.04%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Global
Real
Estate
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
lost
7.17%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
For
the
fiscal
year
ended
December
31,
2020,
the
global
listed
property
market,
as
measured
by
the
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(Net),
delivered
a
-9.04%
return,
underperforming
broader
global
equities
by
a
wide
margin.
Within
the
global
property
securities
market,
there
was
a
wide
dispersion
of
returns
over
the
period.
Australia
posted
positive
double-digit
returns,
leading
the
market
from
a
regional
perspective.
Returns
were
driven
by
industrial
and
diversified
companies.
Europe
also
had
a
strong
year
supported
mostly
by
Dutch
and
German
companies.
Returns
lagged
in
the
U.K.
with
North
America
following
closely
behind.
Japan
led
losses
for
the
year
as
a
result
of
weak
performance
by
office
and
lodging
companies.
With
respect
to
property
sectors,
there
was
over
50%
in
performance
return
dispersion.
Sectors
most
affected
by
social
distancing
measures,
such
as
retail,
hotels
and
office,
suffered
large
double-digit
declines.
Sectors
benefiting
from
the
acceleration
of
e-commerce
trends
(industrial)
and
the
shift
to
an
ongoing
‘work-
from-home’
environment
(data
centers,
towers)
posted
strong
double-digit
returns.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
its
money
managers
affect
its
benchmark
relative
performance?
The
Fund
outperformed
its
benchmark
for
the
one-year
period
ending
December
31,
2020.
Security
selection
in
Continental
Europe
benefited
performance
most
over
the
year,
with
the
lack
of
exposure
to
the
Dutch
retail
and
diversified
sectors
driving
performance.
Security
selection
in
the
U.S.
also
benefitted
performance
over
this
time
period,
especially
within
the
diversified
(towers
and
gaming),
office
and
self-storage
sectors.
Positioning
in
U.S.
shopping
centers,
data
centers
and
lodging
partially
offset
these
gains.
The
Fund’s
money
managers
have
non-discretionary
assignments
pursuant
to
which
they
provide
a
model
portfolio
to
RIM
representing
their
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
the
Fund.
With
respect
to
this
portion
of
the
Fund,
RIM
manages
the
Fund’s
assets
based
upon
the
model
portfolios
provided
by
the
Fund’s
money
managers.
RIM
manages
assets
not
allocated
to
money
manager
strategies
and
the
Fund’s
cash
balances.
With
respect
to
the
Fund’s
money
managers,
Cohen
&
Steers
Capital
Management,
Inc.,
Cohen
&
Steers
UK
Limited
and
Cohen
&
Steers
Asia
Limited
(together,
“Cohen
&
Steers”)
provided
the
best
performing
strategy,
outperforming
the
Fund’s
benchmark
for
the
fiscal
year
by
a
wide
margin.
Cohen
&
Steers
seeks
to
generate
excess
returns
through
a
combination
of
fundamental
bottom-up
stock
selection
and
top-down
regional
and
property
type
allocation
decisions.
The
key
contributors
to
outperformance
were
bottom-up
stock
selection
within
the
U.S.
and
Europe.
Also
contributing
positively
was
security
selection
in
Asia/Pacific
ex.
Japan
and
Australia.
Detracting
from
performance
was
negative
stock
selection
in
the
Japanese
REIT
and
diversified
sectors.
RREEF
America
L.L.C.,
Deutsche
Investments
Australia
Limited
and
Deutsche
Alternatives
Asset
Management
(Global)
Limited
(together,
“Deutsche
Asset
Management”)
also
outperformed
the
Fund’s
benchmark
for
the
fiscal
year.
Stock
selection
within
the
U.S.
was
a
key
contributor
to
outperformance.
Results
were
positive
within
the
office,
diversified
and
self-storage
sectors.
Additionally
in
Europe,
stock
selection
within
Netherlands
diversified
companies
and
an
overweight
to
German
residential
companies
benefitted
performance.
Exposure
to
out-of-
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
Global
Real
Estate
Securities
Fund
133
benchmark
emerging
markets
companies
slightly
detracted
from
performance.
During
the
period,
RIM
continued
to
utilize
a
strategy
to
implement
regional
and
property
sector
tilting
through
the
direct
purchase
of
real
estate
stocks.
Using
the
output
from
a
quantitative
model,
the
strategy
seeks
to
position
the
portfolio
to
meet
RIM’s
overall
preferred
positioning
with
respect
to
regional
and
property
type
exposures.
The
strategy
outperformed
relative
to
the
Fund’s
benchmark
for
the
one-year
period.
Positive
performance
was
driven
by
strong
stock
selection
in
all
regions
apart
from
Japan.
Allocations
to
U.S.
office,
hotels,
residential
and
diversified
(towers
and
gaming)
sectors
contributed
to
outperformance.
Detracting
from
performance
was
stock
selection
across
Japan.
During
the
period,
the
Fund
used
index
futures
and
swap
contracts
to
equitize
the
Fund’s
cash
and
this
strategy
performed
as
intended.
Describe
any
changes
to
the
Fund’s
structure
or
the
money
manager
line-up.
There
were
no
changes
to
the
Fund’s
structure
or
money
manager
line-up
during
the
period.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
Russell
Investment
Funds
(“RIF”)
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Money
Managers
as
of
December
31,
2020
Styles
Cohen
&
Steers
Capital
Management,
Inc.,
Cohen
&
Steers
UK
Limited
and
Cohen
&
Steers
Asia
Limited
Market-Oriented
RREEF
America
L.L.C.,
Deutsche
Investments
Australia
Limited
and
Deutsche
Alternatives
Asset
Management
(Global)
Limited
operating
under
the
brand
name
Deutsche
Asset
Management
Market-Oriented
*
Assumes
initial
investment
on
January
1,
2011.
**
The
FTSE
EPRA/NAREIT
Developed
Real
Estate
Index
(Net)
is
an
unmanaged
market-weighted
total
return
index,
which
consists
of
publicly
traded
equity
REITs
and
listed
property
companies
from
developed
markets
whose
floats
are
larger
than
$100
million
and
derive
more
than
half
of
their
revenue
from
property-
related
activities
and
is
net
of
dividend
withholding
taxes.
***
The
MSCI
World
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
23
developed
market
country
indexes.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
134
Global
Real
Estate
Securities
Fund
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,169.00
$
1,020.61
Expenses
Paid
During
Period*
$
4.91
$
4.57
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.
90%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
135
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
96.3%
Australia
-
4.1%
BGP
Holdings
PLC(Æ)(Š)
926,311
—
Charter
Hall
Group
-
ADR(ö)
609,316
6,916
Goodman
Group(ö)
280,089
4,086
GPT
Group
(The)(ö)
1,328,347
4,612
Growthpoint
Properties
Australia,
Ltd.(ö)
486,200
1,309
Mirvac
Group(ö)
6,514,383
13,274
Scentre
Group(ö)
1,480,910
3,178
Stockland(ö)
64,167
207
Vicinity
Centres
(Æ)(ö)
1,772,679
2,197
Waypoint
REIT,
Ltd.(Æ)(ö)
1,237,255
2,605
38,384
Austria
-
0.3%
CA
Immobilien
Anlagen
AG
85,053
3,241
Belgium
-
1.1%
Aedifica
(ö)
44,603
5,359
VGP
NV
16,255
2,435
Warehouses
De
Pauw
CVA(ö)
58,592
2,028
9,822
Canada
-
1.8%
Allied
Properties
Real
Estate
Investment
Trust(ö)
91,703
2,725
Canadian
Apartment
Properties(ö)
180,276
7,080
Granite
Real
Estate
Investment
Trust(ö)
76,082
4,656
RioCan
Real
Estate
Investment
Trust(ö)
188,765
2,484
16,945
China
-
0.2%
GDS
Holdings,
Ltd.
-
ADR(Æ)
19,633
1,838
France
-
2.1%
ARGAN
SA(ö)
21,256
2,177
Covivio
(ö)
30,917
2,848
Gecina
SA(ö)
50,034
7,726
ICADE(ö)
31,139
2,395
Klepierre
SA
-
GDR(ö)
184,619
4,154
19,300
Germany
-
6.5%
Alstria
Office
REIT-AG(ö)
326,324
5,893
Deutsche
Wohnen
SE
368,354
19,664
Instone
Real
Estate
Group
AG(Æ)(Þ)
135,988
3,489
Vonovia
SE
432,185
31,516
60,562
Hong
Kong
-
5.6%
CK
Asset
Holdings,
Ltd.
1,214,500
6,247
ESR
Cayman,
Ltd.(Æ)(Þ)
801,400
2,880
Hang
Lung
Properties,
Ltd.
-
ADR
1,655,000
4,380
Link
Real
Estate
Investment
Trust(ö)
1,725,500
15,723
New
World
Development
Co.,
Ltd.
472,500
2,201
Sun
Hung
Kai
Properties,
Ltd.
1,000,000
12,910
Swire
Properties,
Ltd.
860,200
2,507
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Wharf
Real
Estate
Investment
Co.,
Ltd.
1,084,000
5,652
52,500
India
-
0.2%
Ascendas
India
Trust
1,499,400
1,565
Japan
-
11.1%
Activia
Properties,
Inc.(ö)
1,894
7,995
Daibiru
Corp.
249,000
3,158
Daiwa
House
REIT
Investment
Corp.(ö)
242
599
Daiwa
Securities
Living
Investments
Corp.(ö)
3,087
2,861
Global
One
Real
Estate
Investment
Corp.(ö)
3,575
3,628
GLP
J-
Reit
(Æ)(ö)
3,127
4,931
Hulic
REIT,
Inc.(ö)
3,729
5,562
Japan
Prime
Realty
Investment
Corp.(ö)
769
2,553
Japan
Retail
Fund
Investment
Corp.(ö)
2,721
4,962
Kenedix
Retail
REIT
Corp.(ö)
1,840
4,486
Mitsubishi
Estate
Co.,
Ltd.
863,400
13,943
Mitsui
Fudosan
Co.,
Ltd.
900,500
18,981
Mitsui
Fudosan
Logistics
Park,
Inc.(ö)
464
2,350
MORI
Trust
Hotel
REIT,
Inc.(ö)
3,657
4,083
MORI
Trust
Sogo
REIT,
Inc.(ö)
2,043
2,637
Nippon
Building
Fund,
Inc.(ö)
876
5,074
Nippon
REIT
Investment
Corp.(ö)
627
2,252
Nomura
Real
Estate
Master
Fund,
Inc.(ö)
2,970
4,250
Sumitomo
Realty
&
Development
Co.,
Ltd.
99,800
3,084
Tokyu
Fudosan
Holdings
Corp.
691,600
3,696
United
Urban
Investment
Corp.(ö)
1,997
2,471
103,556
Macao
-
0.3%
Sands
China,
Ltd.
599,200
2,634
Netherlands
-
0.9%
Unibail
-
Rodamco
-Westfield(ö)
104,023
8,212
Norway
-
0.0%
Entra
ASA(Þ)
13,286
301
Singapore
-
3.1%
CapitaLand
Mall
Trust
Class
A(ö)
5,910,128
9,646
CapitaLand,
Ltd.
1,702,200
4,219
City
Developments,
Ltd.
474,200
2,861
Frasers
Logistics
&
Industrial
Trust(ö)
2,032,400
2,166
Keppel
DC
REIT(ö)
1,173,800
2,499
Mapletree
Industrial
Trust(Æ)(ö)
1,650,500
3,612
Mapletree
Logistics
Trust(ö)
237,300
361
Parkway
Life
Real
Estate
Investment
Trust(Æ)(ö)
1,059,455
3,102
28,466
Spain
-
0.4%
Arima
Real
Estate
Socimi
SA(Æ)(ö)
140,207
1,421
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
136
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Inmobiliaria
Colonial
Socimi
SA(ö)
280,787
2,755
4,176
Sweden
-
2.6%
Castellum
AB
343,739
8,716
Catena
AB
48,807
2,285
Fabege
AB
319,823
5,025
Fastighets
AB
Balder
Class
B(Æ)
154,002
8,046
24,072
United
Kingdom
-
5.2%
Assura
PLC(ö)
2,629,877
2,763
Big
Yellow
Group
PLC(ö)
158,561
2,379
British
Land
Co.
PLC
(The)(ö)
1,031,178
6,901
Derwent
London
PLC(ö)
93,455
3,960
Grainger
PLC
1,021,006
3,963
Land
Securities
Group
PLC(ö)
242,982
2,241
LondonMetric
Property
PLC(ö)
565,688
1,773
PRS
REIT
PLC
(The)(ö)
1,022,218
1,074
Safestore
Holdings
PLC(ö)
213,317
2,269
Segro
PLC(ö)
989,610
12,830
Tritax
EuroBox
PLC(Þ)
855,391
1,157
UNITE
Group
PLC
(The)(Æ)(ö)
416,371
5,954
Urban
&
Civic
PLC
51,682
243
Workspace
Group
PLC(ö)
124,219
1,306
48,813
United
States
-
50.8%
Agree
Realty
Corp.(ö)
175,916
11,712
Alexandria
Real
Estate
Equities,
Inc.(ö)
85,805
15,292
American
Campus
Communities,
Inc.(ö)
91,439
3,911
American
Homes
4
Rent
Class
A(ö)
200,257
6,008
Americold
Realty
Trust(ö)
137,220
5,122
Apple
Hospitality
REIT,
Inc.(ö)
403,346
5,207
AvalonBay
Communities,
Inc.(ö)
76,573
12,285
Boyd
Gaming
Corp.(Æ)
76,314
3,275
Brixmor
Property
Group,
Inc.(ö)
75,882
1,256
Caesars
Entertainment,
Inc.(Æ)
28,283
2,101
CoreSite
Realty
Corp.
Class
A(ö)
30,011
3,760
CyrusOne
,
Inc.(ö)
143,331
10,485
Digital
Realty
Trust,
Inc.(ö)
39,411
5,498
Duke
Realty
Corp.(ö)
197,243
7,884
EastGroup
Properties,
Inc.(ö)
64,179
8,861
Empire
State
Realty
Trust,
Inc.
Class
A(ö)
260,339
2,426
Equinix
,
Inc.(Æ)(ö)
6,559
4,684
Equity
LifeStyle
Properties,
Inc.
Class
A(ö)
55,160
3,495
Essential
Properties
Realty
Trust,
Inc.(ö)
352,188
7,466
Essex
Property
Trust,
Inc.(ö)
77,707
18,449
Extra
Space
Storage,
Inc.(ö)
169,835
19,677
Gaming
and
Leisure
Properties,
Inc.(ö)
186,894
7,924
Healthcare
Trust
of
America,
Inc.
Class
A(ö)
137,139
3,777
Healthpeak
Properties,
Inc.(ö)
369,891
11,182
Hilton
Worldwide
Holdings,
Inc.
14,674
1,633
Host
Hotels
&
Resorts,
Inc.(ö)
243,112
3,557
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Howard
Hughes
Corp.
(The)(Æ)
37,677
2,974
Invitation
Homes,
Inc.(ö)
420,112
12,477
Jones
Lang
LaSalle,
Inc.(Æ)
20,076
2,979
Kilroy
Realty
Corp.(ö)
93,891
5,389
Kimco
Realty
Corp.(ö)
730,187
10,960
Life
Storage,
Inc.(Æ)(ö)
80,734
9,639
Medical
Properties
Trust,
Inc.(ö)
486,383
10,598
MGM
Growth
Properties
LLC
Class
A(ö)
55,287
1,730
Mid-America
Apartment
Communities,
Inc.(ö)
67,254
8,520
NetSTREIT
Corp.(ö)
92,134
1,796
Omega
Healthcare
Investors,
Inc.(ö)
145,022
5,267
Park
Hotels
&
Resorts,
Inc.(ö)
563,916
9,671
Prologis,
Inc.(ö)
399,198
39,784
Public
Storage(ö)
77,013
17,785
Realty
Income
Corp.(ö)
38,383
2,386
Retail
Properties
of
America,
Inc.
Class
A(ö)
197,827
1,693
Rexford
Industrial
Realty,
Inc.(ö)
157,232
7,722
Sabra
Health
Care
REIT,
Inc.(ö)
277,023
4,812
SBA
Communications
Corp.(ö)
2,521
711
Simon
Property
Group,
LP(ö)
374,167
31,909
SL
Green
Realty
Corp.(ö)
117,785
7,018
STORE
Capital
Corp.(ö)
227,133
7,718
Sun
Communities,
Inc.(ö)
106,500
16,183
UDR,
Inc.(ö)
289,973
11,144
Ventas,
Inc.(ö)
434,842
21,325
VEREIT,
Inc.(ö)
260,469
9,843
VICI
Properties,
Inc.(ö)
281,904
7,189
Welltower
,
Inc.(ö)
213,834
13,818
Weyerhaeuser
Co.(ö)
127,553
4,277
474,244
Total
Common
Stocks
(cost
$727,455)
898,631
Short-Term
Investments
-
3.0%
United
States
-
3.0%
U.S.
Cash
Management
Fund(@)
27,527,219
(∞)
27,522
Total
Short-Term
Investments
(cost
$27,523)
27,522
Total
Investments
-
99.3%
(identified
cost
$754,978)
926,153
Other
Assets
and
Liabilities,
Net
-
0.7%
6,488
Net
Assets
-
100.0%
932,641
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
137
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Securities
Acquisition
Date
Principal
Amount
($)
or
shares
Cost
per
Unit
$
Cost
(000)
$
Fair
Value
(000)
$
0.8%
Entra
ASA
10/19/15
NOK
13,286
8.09
107
301
ESR
Cayman,
Ltd.
11/12/19
HKD
801,400
2.17
1,739
2,880
Instone
Real
Estate
Group
AG
03/28/19
EUR
135,988
23.99
3,263
3,489
Tritax
EuroBox
PLC
07/04/18
GBP
855,391
1.15
982
1,157
7,827
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
514
USD
17,214
03/21
388
FTSE/EPRA
Europe
Index
Futures
201
EUR
4,322
03/21
144
Hang
Seng
Index
Futures
9
HKD
12,249
01/21
50
MSCI
Singapore
Index
Futures
34
SGD
1,099
01/21
(3)
S&P/TSX
60
Index
Futures
5
CAD
1,029
03/21
(8)
SPI
200
Index
Futures
9
AUD
1,471
03/21
(6)
TOPIX
Index
Futures
20
JPY
360,899
03/21
80
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
645
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
1,115
JPY
114,936
01/05/21
(2)
Bank
of
America
USD
146
SEK
1,201
01/04/21
—
Bank
of
America
EUR
401
USD
488
03/17/21
(3)
Bank
of
America
HKD
2,988
USD
385
01/04/21
—
Bank
of
America
HKD
4,282
USD
552
01/05/21
—
Bank
of
America
JPY
139,024
USD
1,343
01/04/21
(4)
Bank
of
America
JPY
27,969
USD
269
03/17/21
(2)
Bank
of
America
NOK
5,714
USD
663
01/04/21
(4)
Bank
of
New
York
USD
337
AUD
451
03/17/21
11
Bank
of
New
York
USD
308
CAD
394
03/17/21
1
Bank
of
New
York
USD
1,724
EUR
1,421
03/17/21
15
Bank
of
New
York
USD
525
HKD
4,069
03/17/21
—
Bank
of
New
York
USD
1,051
JPY
109,289
03/17/21
9
Bank
of
New
York
USD
289
SGD
385
03/17/21
3
JPMorgan
Chase
USD
337
AUD
451
03/17/21
11
JPMorgan
Chase
USD
308
CAD
394
03/17/21
1
JPMorgan
Chase
USD
1,725
EUR
1,421
03/17/21
14
JPMorgan
Chase
USD
525
HKD
4,069
03/17/21
—
JPMorgan
Chase
USD
1,050
JPY
109,289
03/17/21
9
JPMorgan
Chase
USD
289
SGD
385
03/17/21
3
Royal
Bank
of
Canada
USD
338
AUD
451
03/17/21
11
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
138
Global
Real
Estate
Securities
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Royal
Bank
of
Canada
USD
308
CAD
394
03/17/21
1
Royal
Bank
of
Canada
USD
90
EUR
73
01/04/21
(1)
Royal
Bank
of
Canada
USD
57
EUR
46
01/05/21
—
Royal
Bank
of
Canada
USD
492
EUR
400
03/17/21
(3)
Royal
Bank
of
Canada
USD
1,727
EUR
1,421
03/17/21
13
Royal
Bank
of
Canada
USD
525
HKD
4,069
03/17/21
—
Royal
Bank
of
Canada
USD
581
JPY
60,000
03/17/21
—
Royal
Bank
of
Canada
USD
1,051
JPY
109,289
03/17/21
8
Royal
Bank
of
Canada
USD
480
SEK
3,934
01/05/21
(2)
Royal
Bank
of
Canada
USD
289
SGD
385
03/17/21
3
Royal
Bank
of
Canada
NOK
1,017
USD
119
01/05/21
—
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
92
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
$
—
$
38,384
$
—
$
—
$
38,384
4
.1
Austria
—
3,241
—
—
3,241
0
.3
Belgium
—
9,822
—
—
9,822
1
.1
Canada
16,945
—
—
—
16,945
1
.8
China
1,838
—
—
—
1,838
0
.2
France
—
19,300
—
—
19,300
2
.1
Germany
—
60,562
—
—
60,562
6
.5
Hong
Kong
—
52,500
—
—
52,500
5
.6
India
—
1,565
—
—
1,565
0
.2
Japan
—
103,556
—
—
103,556
11
.1
Macao
—
2,634
—
—
2,634
0
.3
Netherlands
—
8,212
—
—
8,212
0
.9
Norway
—
301
—
—
301
—
*
Singapore
—
28,466
—
—
28,466
3
.1
Spain
—
4,176
—
—
4,176
0
.4
Sweden
—
24,072
—
—
24,072
2
.6
United
Kingdom
—
48,813
—
—
48,813
5
.2
United
States
474,244
—
—
—
474,244
50
.8
Short-Term
Investments
—
—
—
27,522
27,522
3
.0
Total
Investments
493,027
405,604
—
27,522
926,153
99
.3
Other
Assets
and
Liabilities,
Net
0
.7
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
139
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
100
.0
Other
Financial
Instruments
Assets
Futures
Contracts
662
—
—
—
662
0
.1
Foreign
Currency
Exchange
Contracts
—
113
—
—
113
—
*
A
Liabilities
Futures
Contracts
(17
)
—
—
—
(17
)
(—)
*
Foreign
Currency
Exchange
Contracts
(13
)
(8
)
—
—
(21
)
(—)
*
Total
Other
Financial
Instruments
**
$
632
$
105
$
—
$
—
$
737
*
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
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
December
31,
2020,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Property
Sector
Exposure
Fair
Value
$
Diversified
..............................................................................
261,153
Healthcare
..............................................................................
76,644
Industrial
................................................................................
106,411
Internet
Services
&
Infrastructure
...........................................
28,764
Lodging/Resorts
......................................................................
25,881
Office
......................................................................................
63,228
Residential
..............................................................................
162,716
Retail
......................................................................................
122,085
Self
Storage
.............................................................................
51,749
Short-Term
Investments
..........................................................
27,522
Total
Investments
....................................................................
926,153
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
140
Global
Real
Estate
Securities
Fund
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
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
$
—
$
113
Variation
margin
on
futures
contracts*
662
—
Total
$
662
$
113
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
17
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
21
Total
$
17
$
21
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
6,363
$
—
Foreign
currency
exchange
contracts
—
1,171
Total
$
6,363
$
1,171
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(3
2
)
$
—
Foreign
currency
exchange
contracts
—
(32)
Total
$
(3
2
)
$
(32)
*
Includes
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
141
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
113
$
—
$
113
Total
Financial
and
Derivative
Assets
113
—
113
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
113
$
—
$
113
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
$
13
$
—
$
—
$
13
Bank
of
New
York
12
—
—
12
BNP
Paribas
14
—
—
14
JPMorgan
Chase
26
6
—
20
Royal
Bank
of
Canada
39
2
—
37
State
Street
9
—
—
9
Total
$
113
$
8
$
—
$
105
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
142
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
21
$
—
$
21
Total
Financial
and
Derivative
Liabilities
21
—
21
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(13)
—
(13)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
8
$
—
$
8
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
JPMorgan
Chase
$
6
$
6
$
—
$
—
Royal
Bank
of
Canada
2
2
—
—
Total
$
8
$
8
$
—
$
—
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
143
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
754,978
Investments,
at
fair
value(>)
...........................................................................................................................................................
926,153
Foreign
currency
holdings(^)
.........................................................................................................................................................
1,129
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
113
Receivables:
Dividends
and
interest
.......................................................................................................................................................
3,366
Dividends
from
affiliated
funds
..........................................................................................................................................
2
Investments
sold
................................................................................................................................................................
4,516
Fund
shares
sold
................................................................................................................................................................
75
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
209
From
broker(a)
...................................................................................................................................................................
1,735
Variation
margin
on
futures
contracts
.................................................................................................................................
647
Total
assets
.................................................................................................................................................
937,945
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
4,235
Fund
shares
redeemed
.......................................................................................................................................................
158
Accrued
fees
to
affiliates
....................................................................................................................................................
668
Other
accrued
expenses
.....................................................................................................................................................
222
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
21
Total
liabilities
.............................................................................................................................................
5,304
Net
Assets
............................................................................................................................................................
$
932,641
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
144
Global
Real
Estate
Securities
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
68,445
Shares
of
beneficial
interest
...........................................................................................................................................................
649
Additional
paid-in
capital
..............................................................................................................................................................
863,547
Net
Assets
............................................................................................................................................................
$
932,641
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
14.37
Net
assets
...............................................................................................................................................................................
$
932,641,300
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
64,910,966
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
1,126
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
$
27,522
(a)
Receivable
from
Broker
for
Futures
$
1,735
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
145
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
24,
521
Dividends
from
affiliated
funds
.........................................................................................................................................
216
Securities
lending
income
(net)
.........................................................................................................................................
194
Less
foreign
taxes
withheld
...............................................................................................................................................
(
825
)
Total
investment
income
...............................................................................................................................................................
24,106
Expenses
Advisory
fees
....................................................................................................................................................................
6,758
Administrative
fees
...........................................................................................................................................................
422
Custodian
fees
...................................................................................................................................................................
168
Transfer
agent
fees
............................................................................................................................................................
37
Professional
fees
...............................................................................................................................................................
143
Trustees’
fees
....................................................................................................................................................................
40
Printing
fees
......................................................................................................................................................................
120
Miscellaneous
...................................................................................................................................................................
27
Total
expenses
...............................................................................................................................................................................
7,715
Net
investment
income
(loss)
........................................................................................................................................................
16,391
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
(70,807)
Investments
in
affiliated
funds
..........................................................................................................................................
(3)
Futures
contracts
..............................................................................................................................................................
6,363
Foreign
currency
exchange
contracts
................................................................................................................................
1,171
Foreign
currency-related
transactions
...............................................................................................................................
292
Net
realized
gain
(loss)
..................................................................................................................................................................
(62,984)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
5,
368
Investments
in
affiliated
funds
..........................................................................................................................................
1
Futures
contracts
..............................................................................................................................................................
(32)
Foreign
currency
exchange
contracts
................................................................................................................................
(32)
Foreign
currency-related
transactions
...............................................................................................................................
19
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
5,324
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(57,660)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(41,269)
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
146
Global
Real
Estate
Securities
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
16,391
$
15,
772
Net
realized
gain
(loss)
......................................................................................................................
(62,984)
15,745
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
5,324
143,607
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(41,269)
175,
124
Distributions
To
shareholders
.................................................................................................................................
(12,976)
(46,690)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(12,976)
(46,690)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
35,599
379
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(18,646)
128,813
Net
Assets
Beginning
of
period
.................................................................................................................................
951,287
822,474
End
of
period
..........................................................................................................................................
$
932,641
$
951,287
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
4,515
$
54,861
1,024
$
15,
653
Proceeds
from
reinvestment
of
distributions
1,029
12,
976
3,076
46,690
Payments
for
shares
redeemed
(2,411)
(32,
238
)
(4,086)
(61,964)
Total
increase
(decrease)
3,133
$
35,599
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.
148
Global
Real
Estate
Securities
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
December
31,
2020
15.40
.26
(1.09)
(.83)
(.20)
—
—
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
149
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)
%
Portfolio
Turnover
Rate
(.20)
14.37
(5.18)
932,641
.91
.91
1.94
96
(.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
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
150
Global
Real
Estate
Securities
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
book-tax
differences.
Book-tax
differences
are
primarily
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends,
differences
in
treatment
of
income
from
swaps,
net
operating
losses,
investments
in
partnerships,
investments
in
passive
foreign
investment
companies
(PFICs),
tax
straddle
transaction,
use
of
tax
equalization
and
foreign
capital
gains
taxes.
These
adjustments
have
no
impact
on
the
net
assets.
Advisory
fees
$
620,758
Administration
fees
38,797
Transfer
agent
fees
3,415
Trustee
fees
5,124
$
668,094
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
$
280,686
$
290,994
$
(3)
$
1
$
27,522
$
216
$
—
U.S.
Cash
Collateral
Fund
29,944
206,880
236,824
—
—
—
181
—
$
67,776
$
487,566
$
527,818
$
(3
)
$
1
$
27,522
$
397
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
816,627,559
$
112,263,316
$
(2,471,365)
$
109,791,951
$
16,473,435
$
(57,876,488)
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
12,976,175
$
—
$
—
$
46,690,134
$
—
$
—
Russell
Investment
Funds
Notes
to
Schedule
of
Investments
—
December
31,
2020
Notes
to
Schedule
of
Investments
151
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,
foreign
currency
exchange
contracts,
or
swaps
entered
into
by
the
Fund.
See
Statement
of
Assets
and
Liabilities.
(∞)
Unrounded
units.
(v)
Loan
agreement
still
pending.
Rate
not
available
at
period
end.
(
Û
)
All
or
a
portion
of
the
shares
of
this
security
are
pledged
as
collateral
in
connection
with
securities
sold
short
.
(
Ð
)
All
or
a
portion
of
the
shares
of
this
security
are
on
loan
through
the
reciprocal
lending
program
with
State
Street.
See
note
2
in
the
Notes
to
the
Financial
Statements
.
(1)
Weekly
payment
frequency.
(2)
Quarterly
payment
frequency.
(3)
Semi-annual
payment
frequency.
(4)
Annual
payment
frequency.
(5)
Payment
at
termination.
ADR
-
American
Depositary
Receipt
ADS
-
American
Depositary
Share
BBR
-
Bank
Bill
Rate
BBSW
-
Bank
Bill
Swap
Reference
Rate
BUBOR
-
Budapest
Interbank
Offered
Rate
CIBOR
-
Copenhagen
Interbank
Offered
Rate
CME
-
Chicago
Mercantile
Exchange
CMO
-
Collateralized
Mortgage
Obligation
CVO
-
Contingent
Value
Obligation
EMU
-
European
Economic
and
Monetary
Union
EURIBOR
-
Euro
Interbank
Offered
Rate
FDIC
-
Federal
Deposit
Insurance
Company
GDR
-
Global
Depositary
Receipt
GDS
-
Global
Depositary
Share
GSCI
-
Goldman
Sachs
Commodity
Index
HIBOR
-
Hong
Kong
Interbank
Offer
Rate
Russell
Investment
Funds
Notes
to
Schedule
of
Investments,
continued
—
December
31,
2020
152
Notes
to
Schedule
of
Investments
Foreign
Currency
Abbreviations:
JIBAR
-
Johannesburg
Interbank
Agreed
Rate
KSDA
-
Korean
Securities
Dealers
Association
LIBOR
-
London
Interbank
Offered
Rate
MIBOR
-
Mumbai
Interbank
Offered
Rate
NIBOR
-
Norwegian
Interbank
Offered
Rate
PIK
-
Payment
in
Kind
PRIBOR
-
Prague
Interbank
Offered
Rate
REMIC
-
Real
Estate
Mortgage
Investment
Conduit
STIBOR
-
Stockholm
Interbank
Offered
Rate
STRIP
-
Separate
Trading
of
Registered
Interest
and
Principal
of
Securities
SFE
-
Sydney
Futures
Exchange
TBA
-
To
Be
Announced
Security
UK
-
United
Kingdom
WTI
-
West
Texas
Intermediate
ARS
-
Argentine
peso
HKD
-
Hong
Kong
dollar
PKR
-
Pakistani
rupee
AUD
-
Australian
dollar
HUF
-
Hungarian
forint
PLN
-
Polish
zloty
BRL
-
Brazilian
real
IDR
-
Indonesian
rupiah
RON
-
Romanian
New
Leu
CAD
-
Canadian
dollar
ILS
-
Israeli
shekel
RUB
-
Russian
ruble
CHF
-
Swiss
franc
INR
-
Indian
rupee
SEK
-
Swedish
krona
CLP
-
Chilean
peso
ISK
-
Icelandic
krona
SGD
-
Singapore
dollar
CNH
-
Chinese
offshore
spot
ITL
-
Italian
lira
SKK
-
Slovakian
koruna
CNY
-
Chinese
renminbi
yuan
JPY
-
Japanese
yen
THB
-
Thai
baht
COP
-
Colombian
peso
KES
-
Kenyan
schilling
TRY
-
Turkish
lira
CRC
-
Costa
Rican
colon
KRW
-
South
Korean
won
TWD
-
Taiwanese
dollar
CZK
-
Czech
koruna
MXN
-
Mexican
peso
USD
-
United
States
dollar
DKK
-
Danish
krone
MYR
-
Malaysian
ringgit
UYU
-
Uruguayan
peso
DOP
-
Dominican
peso
NOK
-
Norwegian
krone
VEB
-
Venezuelan
bolivar
EGP
-
Egyptian
pound
NGN
-
Nigerian
naira
VND
-
Vietnamese
dong
EUR
-
Euro
NZD
-
New
Zealand
dollar
ZAR
-
South
African
rand
GBP
-
British
pound
sterling
PEN
-
Peruvian
nuevo
sol
GHS
-
Ghanaian
Cedi
PHP
-
Philippine
peso
Russell
Investment
Funds
Notes
to
Financial
Highlights
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Notes
to
Financial
Highlights
153
(a)
Average
daily
shares
outstanding
were
used
for
this
calculation.
(b)
May
reflect
amounts
waived
and/or
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(c)
Less
than
$.01
per
share.
(d)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
(e)
Gross
and
Net
Expense
Ratios
for
the
period
ended
December
31,
2016
include
a
reimbursement
from
State
Street
for
the
overbilling
of
custody
expenses
in
prior
years.
Without
the
reimbursement,
the
expense
ratios
would
have
been
higher
by
the
amount
listed
below.
Fund
Impact
of
the
fee
reimbursement
on
gross
and
net
expense
ratios
U.S.
Strategic
Equity
Fund
0.01%
U.S.
Small
Cap
Equity
Fund
0.01%
International
Developed
Markets
Fund
0.05%
Russell
Investment
Funds
Notes
to
Financial
Statements
—
December
31,
2020
154
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.
These
financial
statements
report
on
five
of
these
funds
(each
a
“Fund”
and
collectively
the
“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
Third
Amended
and
Restated
Master
Trust
Agreement
dated
December
7,
2020,
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.
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
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
155
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
exchange
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
156
Notes
to
Financial
Statements
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
other
emergency
situation;
or
an
armed
conflict.
The
NAV
of
a
Fund’s
portfolio
that
includes
foreign
securities
may
change
on
days
when
shareholders
will
not
be
able
to
purchase
or
redeem
Fund
shares,
since
foreign
securities
can
trade
on
non-business
days.
For
movements
between
the
levels
within
the
fair
value
hierarchy,
the
Funds
have
adopted
a
policy
of
recognizing
the
transfers
as
of
period
end.
The
U.S.
Strategic
Equity,
U.S.
Small
Cap
Equity,
International
Developed
Markets
and
Global
Real
Estate
Securities
Funds
had
no
transfers
into
or
out
of
Level
3
for
the
period
ended
December
31,
2020.
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
$625,348.
Level
3
Fair
Value
Investments
The
valuation
techniques
and
significant
inputs
used
in
determining
the
fair
values
of
financial
instruments
classified
as
Level
3
of
the
fair
value
hierarchy
are
as
follows:
Securities
and
other
assets
for
which
market
quotes
are
not
readily
available,
or
are
not
reliable,
are
valued
at
fair
value
as
determined
in
good
faith
by
RIFUS
and
are
categorized
as
Level
3
of
the
fair
value
hierarchy.
Market
quotes
are
considered
not
readily
available
in
circumstances
where
there
is
an
absence
of
current
or
reliable
market-based
data
(e.g.,
trade
information
or
broker
quotes).
When
RIFUS
applies
fair
valuation
methods
that
use
significant
unobservable
inputs
to
determine
a
Fund’s
NAV,
securities
will
not
be
priced
on
the
basis
of
quotes
from
the
primary
market
in
which
they
are
traded,
but
instead
may
be
priced
by
another
method
that
RIFUS
believes
accurately
reflects
fair
value
and
will
be
categorized
as
Level
3
of
the
fair
value
hierarchy.
Fair
value
pricing
may
require
subjective
determinations
about
the
value
of
a
security.
While
the
securities
valuation
procedures
are
intended
to
result
in
a
calculation
of
a
Fund’s
NAV
that
fairly
reflects
security
values
as
of
the
time
of
pricing,
the
process
cannot
guarantee
that
fair
values
determined
by
RIFUS
would
accurately
reflect
the
price
that
a
Fund
could
obtain
for
a
security
if
it
were
to
dispose
of
that
security
as
of
the
time
of
pricing
(for
instance,
in
a
forced
or
distressed
sale).
The
prices
used
by
a
Fund
may
differ
from
the
value
that
would
be
realized
if
the
security
was
sold.
RIFUS
employs
third-party
pricing
vendors
to
provide
fair
value
measurements.
RIFUS
oversees
third-party
pricing
service
providers
in
order
to
support
the
valuation
process
throughout
the
year.
The
significant
unobservable
input
used
in
the
fair
value
measurement
of
certain
Funds'
preferred
equity
securities
is
the
redemption
value
calculated
on
a
fully-diluted
basis
if
converted
to
common
stock.
Significant
increases
or
decreases
in
the
redemption
value
would
have
a
direct
and
proportional
impact
to
fair
value.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
157
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.
Increases
(decreases)
in
the
discount
rates
would
result
in
a
lower
(higher)
fair
value
measurement,
while
increases
(decreases)
in
EBITDA
multiples
and
projected
cash
flows
would
result
in
a
higher
(lower)
fair
value
measurement.
The
significant
unobservable
input
used
in
the
fair
value
measurement
of
certain
Funds'
debt
securities
is
the
yield
to
worst
ratio.
Significant
increases
(decreases)
in
the
yield
to
worst
ratio
would
result
in
a
lower
(higher)
fair
value
measurement.
These
significant
unobservable
inputs
are
further
disclosed
in
the
Presentation
of
Portfolio
Holdings
for
each
respective
Fund
as
applicable.
If
third-party
evaluated
vendor
pricing
is
neither
available
nor
deemed
to
be
indicative
of
fair
value,
RIFUS
may
elect
to
obtain
indicative
market
quotations
(“broker
quotes”)
directly
from
the
broker
or
passed
through
from
a
third-party
vendor.
In
the
event
that
the
source
of
fair
value
is
from
a
single
source
broker
quote,
these
securities
are
classified
as
Level
3
per
the
fair
value
hierarchy.
Broker
quotes
are
typically
received
from
established
market
participants.
Although
independently
received
on
a
daily
basis,
RIFUS
does
not
have
the
transparency
to
view
the
underlying
inputs
which
support
the
broker
quotes.
Significant
changes
in
the
broker
quote
would
have
direct
and
proportional
changes
in
the
fair
value
of
the
security.
There
is
a
third-party
pricing
exception
to
the
quantitative
disclosure
requirement
when
prices
are
not
determined
by
the
reporting
entity.
RIFUS
is
exercising
this
exception
and
has
made
a
reasonable
attempt
to
obtain
quantitative
information
from
the
third-party
pricing
vendors
regarding
the
unobservable
inputs
used.
For
fair
valuations
using
significant
unobservable
inputs,
U.S.
GAAP
requires
a
reconciliation
of
the
beginning
to
ending
balances
for
reported
fair
values
that
present
changes
attributable
to
total
realized
and
unrealized
gains
or
losses,
purchases
and
sales,
and
transfers
in/out
of
the
Level
3
category
during
the
period.
Additionally,
U.S.
GAAP
requires
quantitative
information
regarding
the
significant
unobservable
inputs
used
in
the
determination
of
fair
value
of
assets
categorized
as
Level
3
in
the
fair
value
hierarchy.
In
accordance
with
the
requirements
of
U.S.
GAAP,
a
fair
value
hierarchy,
a
Level
3
reconciliation
and
an
additional
disclosure
about
fair
value
measurements,
if
any,
has
been
included
in
the
Presentation
of
Portfolio
Holdings
for
each
respective
Fund.
Investment
Transactions
Investment
transactions
are
reflected
as
of
the
trade
date
for
financial
reporting
purposes.
This
may
cause
the
NAV
stated
in
the
financial
statements
to
be
different
from
the
NAV
at
which
shareholders
may
transact.
Realized
gains
and
losses
from
securities
transactions,
if
applicable,
are
recorded
on
the
basis
of
specific
identified
cost
incurred
within
a
particular
Fund.
Investment
Income
Dividend
income
is
recorded
net
of
applicable
withholding
taxes
on
the
ex-dividend
date,
except
that
certain
dividends
from
foreign
securities
are
recorded
as
soon
as
the
Funds
are
informed
of
the
dividend,
subsequent
to
the
ex-dividend
date.
To
the
extent
the
dividend
represents
a
return
of
capital
or
capital
gain
for
tax
purposes,
reclassifications
are
made
which
may
be
based
on
management's
estimates.
Interest
income
is
recorded
daily
on
the
accrual
basis.
The
Strategic
Bond
Fund
classifies
gains
and
losses
realized
on
prepayments
received
on
mortgage-backed
securities
as
an
adjustment
to
interest
income.
All
premiums
and
discounts,
including
original
issue
discounts,
are
amortized/
accreted
using
the
effective
interest
method.
Debt
obligation
securities
may
be
placed
in
a
non-accrual
status
and
related
interest
income
may
be
reduced
by
stopping
current
accruals
and
writing
off
interest
receivable
when
the
collection
of
all
or
a
portion
of
interest
has
become
doubtful.
Federal
Income
Taxes
Since
the
Investment
Company
is
a
Massachusetts
business
trust,
each
Fund
is
a
separate
corporate
taxpayer
and
determines
its
net
investment
income
and
capital
gains
(or
losses)
and
the
amounts
to
be
distributed
to
each
Fund’s
shareholders
without
regard
to
the
income
and
capital
gains
(or
losses)
of
the
other
Funds.
For
each
year,
each
Fund
intends
to
qualify
or
continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
of
1986,
as
amended
(the
“Code”)
and
intends
to
distribute
all
of
its
taxable
income
and
capital
gains.
Therefore,
no
federal
income
tax
provision
is
required
for
the
Funds.
The
Funds
comply
with
the
authoritative
guidance
for
uncertainty
in
income
taxes
which
requires
management
to
determine
whether
a
tax
position
of
the
Funds
is
more
likely
than
not
to
be
sustained
upon
examination,
including
resolution
of
any
related
appeals
or
litigation
processes,
based
on
the
technical
merits
of
the
position.
For
tax
positions
meeting
the
more
likely
than
not
threshold,
the
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
158
Notes
to
Financial
Statements
tax
amount
recognized
in
the
financial
statements
is
reduced
by
the
largest
benefit
that
has
a
greater
than
50%
likelihood
of
being
realized
upon
ultimate
settlement
with
the
relevant
taxing
authority.
Management
determined
that
no
accruals
need
to
be
made
in
the
financial
statements
due
to
uncertain
tax
positions.
Management
continually
reviews
and
adjusts
the
Funds’
liability
for
income
taxes
based
on
analyses
of
tax
laws
and
regulations,
as
well
as
their
interpretations,
and
other
relevant
factors.
Each
Fund
files
a
U.S.
tax
return.
At
December
31,
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
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
Declared
Payable
Funds
Quarterly
April,
July,
October
and
mid-December
U.S.
Strategic
Equity,
U.S.
Small
Cap
Equity,
Strategic
Bond
and
Global
Real
Estate
Securities
Funds
Annually
Mid-December
International
Developed
Markets
Fund
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
159
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
December
31,
2020.
The
accrual
for
capital
gains
and
repatriation
taxes
is
included
in
total
distributable
earnings
(losses)
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
$20,011
as
of
December
31,
2020.
The
Strategic
Bond
Fund
had
$10,320
included
in
net
realized
gain
(loss)
on
investments
in
the
Statement
of
Operations
related
to
capital
gains
taxes
for
the
period
ended
December
31,
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.
In
October
2020,
the
Securities
and
Exchange
Commission
("SEC")
adopted
a
final
rule
related
to
the
use
of
derivatives,
reverse
repurchase
agreements
and
certain
other
transactions
by
registered
investment
companies
that
will
rescind
and
withdraw
the
guidance
of
the
SEC
and
its
staff
regarding
asset
segregation
and
cover
transactions.
The
final
rule
requires
funds
to
trade
derivatives
and
other
transactions
that
create
future
payment
or
delivery
obligations
(except
reverse
repurchase
agreements
and
similar
financing
transactions)
subject
to
a
value-at-risk
leverage
limit
and
certain
derivatives
risk
management
program
and
reporting
requirements.
Compliance
with
these
new
requirements
will
be
required
after
an
eighteen-month
transition
period.
Following
the
compliance
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
160
Notes
to
Financial
Statements
date,
these
requirements
may
limit
the
ability
of
a
Fund
to
use
derivatives
and
reverse
repurchase
agreements
and
similar
financing
transactions
as
part
of
its
investment
strategies.
The
effects
of
derivative
instruments,
categorized
by
risk
exposure,
on
the
Statement
of
Assets
and
Liabilities
and
the
Statement
of
Operations,
for
the
period
ended
December
31,
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
December
31,
2020,
the
following
Funds
entered
into
foreign
currency
exchange
contracts
primarily
for
the
strategies
listed
below:
The
Funds’
foreign
currency
exchange
contract
notional
dollar
values
outstanding
fluctuate
throughout
the
fiscal
year
as
required
to
meet
strategic
objectives.
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
Bought
Quarter
Ended
March
31,
2020
June
30,
2020
September
30,
2020
December
31,
2020
International
Developed
Markets
Fund
$
98,889,123
$
61,391,421
$
82,217,043
$
92,369,225
Strategic
Bond
Fund
313,858,104
281,841,211
339,449,231
282,450,458
Global
Real
Estate
Securities
Fund
42,738,714
35,983,934
22,883,112
19,576,632
Outstanding
Contract
Amounts
Sold
Quarter
Ended
March
31,
2020
June
30,
2020
September
30,
2020
December
31,
2020
International
Developed
Markets
Fund
$
100,532,761
$
61,787,261
$
82,779,604
$
91,378,799
Strategic
Bond
Fund
316,376,044
282,765,016
339,937,566
283,120,633
Global
Real
Estate
Securities
Fund
42,972,669
36,224,112
22,947,844
19,496,825
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
161
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
December
31,
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
objectives.
The
following
table
illustrates
the
quarterly
volume
of
options
contracts
measured
by
notional
in
USD.
Futures
Contracts
The
Funds
may
invest
in
futures
contracts
(i.e.,
interest
rate,
foreign
currency
and
index
futures
contracts).
The
face
or
contract
value
of
these
instruments
reflect
the
extent
of
the
Funds’
exposure
to
off
balance
sheet
risk.
The
primary
risks
associated
with
the
use
of
futures
contracts
are
an
imperfect
correlation
between
the
change
in
fair
value
of
the
securities
held
by
the
Funds
and
the
prices
of
futures
contracts,
and
the
possibility
of
an
illiquid
market.
Upon
entering
into
a
futures
contract,
the
Funds
are
required
to
deposit
with
a
broker
an
amount,
termed
the
initial
margin,
which
typically
represents
5%
to
10%
of
the
purchase
price
indicated
in
the
futures
contract.
Payments
to
and
from
the
broker,
known
as
variation
margin,
are
typically
required
to
be
made
on
a
daily
basis
as
the
price
of
the
futures
contract
fluctuates.
Changes
in
initial
settlement
value
are
accounted
for
as
unrealized
appreciation
(depreciation)
until
the
contracts
are
terminated,
at
which
time
realized
gains
and
losses
are
recognized.
For
the
period
ended
December
31,
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
objectives.
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
September
30,
2020
December
31,
2020
Strategic
Bond
Fund
$
201,502,250
$
—
$
11,587,500
$
8,364,250
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
September
30,
2020
December
31,
2020
U.S.
Strategic
Equity
Fund
$
30,322,460
$
17,768,650
$
1,508,400
$
7,497,600
U.S.
Small
Cap
Equity
Fund
15,148,320
12,003,960
8,274,200
10,663,920
International
Developed
Markets
Fund
121,418,445
125,785,574
116,419,273
120,770,115
Strategic
Bond
Fund
1,076,512,278
755,213,567
684,890,630
678,559,999
Global
Real
Estate
Securities
Fund
63,857,884
55,071,146
31,818,603
30,342,388
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
162
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
—
December
31,
2020
Notes
to
Financial
Statements
163
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
December
31,
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
—
December
31,
2020
164
Notes
to
Financial
Statements
For
the
period
ended
December
31,
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
objectives.
The
following
table
illustrates
the
quarterly
volume
of
credit
default
swap
contracts.
For
the
purpose
of
this
disclosure,
volume
is
measured
by
notional
amounts
outstanding
in
USD
at
each
quarter
end.
Interest
Rate
Swaps
The
use
of
interest
rate
swaps
is
a
highly
specialized
activity
which
involves
investment
techniques
and
risks
different
from
those
associated
with
ordinary
portfolio
securities
transactions.
If
RIM
or
a
money
manager
using
this
technique
is
incorrect
in
its
forecast
of
fair
values,
interest
rates
and
other
applicable
factors,
the
investment
performance
of
a
Fund
might
diminish
compared
to
what
it
would
have
been
if
this
investment
technique
were
not
used.
Interest
rate
swaps
do
not
involve
the
delivery
of
securities
or
other
underlying
assets
or
principal.
Accordingly,
the
risk
of
loss
with
respect
to
interest
rate
swaps
is
limited
to
the
net
amount
of
interest
payments
that
a
Fund
is
contractually
obligated
to
make.
Interest
rate
swaps
are
traded
on
exchanges
and
are
subject
to
central
clearing.
If
the
clearing
house
or
futures
commission
merchant
defaults,
a
Funds'
risk
of
loss
consists
of
the
net
amount
of
interest
payments
that
a
Fund
is
contractually
entitled
to
receive.
The
counterparty
risk
for
cleared
derivatives
is
generally
lower
than
for
uncleared
derivatives.
However,
clearing
may
subject
a
Fund
to
increased
costs
or
margin
requirements.
For
the
period
ended
December
31,
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
objectives.
The
following
table
illustrates
the
quarterly
volume
of
interest
rate
swap
contracts.
For
the
purpose
of
this
disclosure,
volume
is
measured
by
the
notional
amounts
outstanding
in
USD
at
each
quarter
end.
Total
Return
Swaps
Certain
Funds
may
enter
into
total
return
swap
agreements
to
expose
cash
to
markets
or
to
effect
investment
transactions.
Total
return
swap
agreements
are
two
party
contracts
entered
into
primarily
by
institutional
investors
for
periods
ranging
from
a
few
weeks
to
more
than
one
year.
In
a
standard
total
return
swap
transaction,
the
two
parties
agree
to
exchange
the
returns
(or
differentials
in
rates
of
return)
earned
or
realized
on
particular
investments
or
instruments.
The
returns
to
be
exchanged
between
the
parties
are
calculated
with
respect
to
a
“notional
amount”
(i.e.,
a
specified
dollar
amount
that
is
hypothetically
invested
in
a
“basket”
of
securities
representing
a
particular
index).
For
the
period
ended
December
31,
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
December
31,
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
to
elect
to
terminate
early
and
cause
settlement
of
all
outstanding
transactions
under
the
applicable
ISDA
Master
Agreement.
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2020
June
30,
2020
September
30,
2020
December
31,
2020
Strategic
Bond
Fund
$
164,893,255
$
99,202,500
$
14,140,000
$
17,926,000
Interest
Rate
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2020
June
30,
2020
September
30,
2020
December
31,
2020
Strategic
Bond
Fund
$
108,838,242
$
135,228,872
$
33,493,056
$
72,984,267
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
165
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.
There
were
no
unfunded
loan
commitments
as
of
December
31,
2020.
Local
Access
Products
Certain
Funds
may
invest
in
local
access
products,
also
known
as
certificates
of
participation,
participation
notes
or
participation
interest
notes.
Local
access
products
are
issued
by
banks
or
broker-dealers
and
are
designed
to
replicate
the
performance
of
foreign
companies
or
foreign
securities
markets
and
can
be
used
by
the
Fund
as
an
alternative
means
to
access
the
securities
market
of
a
frontier
emerging
market
country.
The
performance
results
of
local
access
products
will
not
replicate
exactly
the
performance
of
the
foreign
companies
or
foreign
securities
markets
that
they
seek
to
replicate
due
to
transaction
and
other
expenses.
Investments
in
local
access
products
involve
certain
risks
in
addition
to
those
associated
with
a
direct
investment
in
the
underlying
foreign
companies
or
foreign
securities
markets
whose
return
they
seek
to
replicate.
There
can
be
no
assurance
that
there
will
be
a
trading
market
or
that
the
trading
price
of
local
access
products
will
equal
the
underlying
value
of
the
foreign
company
or
foreign
securities
market
that
it
seeks
to
replicate.
The
Funds
rely
on
the
creditworthiness
of
the
counterparty
issuing
the
local
access
products
and
have
no
rights
against
the
issuer
of
the
underlying
security.
The
Funds
minimize
this
risk
by
entering
into
agreements
only
with
counterparties
that
RIM
deems
creditworthy.
Due
to
liquidity
and
transfer
restrictions,
the
secondary
markets
on
which
the
local
access
products
are
traded
may
be
less
liquid
than
the
markets
for
other
securities,
or
may
be
completely
illiquid.
Credit
Linked
Notes
Certain
Funds
may
invest
in
credit
linked
notes.
Credit
linked
notes
are
obligations
between
two
or
more
parties
where
the
payment
of
principal
and/or
interest
is
based
on
the
performance
of
some
obligation,
basket
of
obligations,
index
or
economic
indicator
(a
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
166
Notes
to
Financial
Statements
“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
SEC
(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
December
31,
2020,
the
market
value
of
the
securities
on
loan
through
the
reciprocal
lending
program
for
U.S.
Small
Cap
Equity
Fund
was
$9,084,350.
As
of
December
31,
2020
the
U.S.
Small
Cap
Equity
Fund
held
$13,307,888
as
collateral
for
short
sales.
Securities
Lending
The
Investment
Company
has
a
securities
lending
program
whereby
each
Fund
can
loan
securities
with
a
value
up
to
33
1/3%
of
each
Fund's
total
assets.
The
maturity
associated
with
these
securities
is
considered
continuous.
The
Fund
receives
cash
(U.S.
currency),
U.S.
government
or
U.S.
government
agency
obligations
as
collateral
against
the
loaned
securities.
The
collateral
cannot
be
resold,
repledged
or
rehypothecated.
As
of
December
31,
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
167
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
(including
as
a
result
of
a
significant
reduction
in
the
number
of
market
participants
or
transactions);
significant
price
volatility;
restrictions
on
foreign
investment;
possible
difficulties
in
the
repatriation
of
investment
income
and
capital
including
as
a
result
of
the
closure
of
securities
markets
in
an
emerging
market
country;
and
generally,
less
stringent
investor
protection
standards
as
compared
with
investments
in
U.S.
or
other
developed
market
equity
securities.
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
for
a
Fund's
portfolio
securities.
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
market
countries
may
be
more
likely
to
experience
the
imposition
of
economic
sanctions
by
foreign
governments.
In
addition,
emerging
market
countries
may
be
subject
to
less
stringent
requirements
regarding
accounting,
auditing,
financial
reporting
and
record
keeping
and
therefore,
all
material
information
may
not
be
available
or
reliable.
U.S.
regulatory
authorities'
ability
to
enforce
legal
and/or
regulatory
obligations
against
individuals
or
entities,
and
shareholders'
ability
to
bring
derivative
litigation
or
otherwise
enforce
their
legal
rights,
in
emerging
market
countries
may
be
limited.
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
market
value)
in
repurchase
agreements
maturing
in
more
than
seven
days.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
168
Notes
to
Financial
Statements
Mortgage-Related
and
Other
Asset-Backed
Securities
The
Strategic
Bond
Fund
may
invest
in
mortgage
or
other
asset-backed
securities
(“ABS”).
These
securities
may
include
mortgage
instruments
issued
by
U.S.
government
agencies
(“agency
mortgages”)
or
those
issued
by
private
entities
(“non-agency
mortgages”).
Specific
types
of
instruments
may
include
reverse
mortgages,
mortgage
pass-through
securities,
collateralized
mortgage
obligations
(“CMO”),
commercial
mortgage-backed
securities,
mortgage
dollar
rolls,
CMO
residuals,
stripped
mortgage-backed
securities
and
other
securities
that
directly
or
indirectly
represent
a
participation
in,
or
are
secured
by
a
payable
from,
mortgage
loans
on
real
property.
The
value
of
a
Fund’s
mortgage-backed
securities
(“MBS”)
may
be
affected
by,
among
other
things,
changes
or
perceived
changes
in
interest
rates,
factors
concerning
the
interests
in
and
structure
of
the
issuer
or
the
originator
of
the
mortgage,
or
the
quality
of
the
underlying
assets.
The
mortgages
underlying
the
securities
may
default
or
decline
in
quality
or
value.
Through
its
investments
in
MBS,
a
Fund
has
exposure
to
subprime
loans,
Alt-A
loans
and
non-conforming
loans
as
well
as
to
the
mortgage
and
credit
markets
generally.
Underlying
collateral
related
to
subprime,
Alt-A
and
non-conforming
mortgage
loans
has
become
increasingly
susceptible
to
defaults
and
declines
in
quality
or
value,
especially
in
a
declining
residential
real
estate
market.
In
addition,
regulatory
or
tax
changes
may
adversely
affect
the
mortgage
securities
markets
as
a
whole.
Mortgage-Backed
Securities
MBS
often
have
stated
maturities
of
up
to
thirty
years
when
they
are
issued,
depending
upon
the
length
of
the
mortgages
underlying
the
securities.
In
practice,
however,
unscheduled
or
early
payments
of
principal
and
interest
on
the
underlying
mortgages
may
make
the
securities’
effective
maturity
shorter
than
this,
and
the
prevailing
interest
rates
may
be
higher
or
lower
than
the
current
yield
of
a
Fund’s
portfolio
at
the
time
resulting
in
reinvestment
risk.
Rising
or
high
interest
rates
may
result
in
slower
than
expected
principal
payments
which
may
tend
to
extend
the
duration
of
MBS,
making
them
more
volatile
and
more
sensitive
to
changes
in
interest
rates.
This
is
known
as
extension
risk.
MBS
may
have
less
potential
for
capital
appreciation
than
comparable
fixed
income
securities
due
to
the
likelihood
of
increased
prepayments
of
mortgages
resulting
from
foreclosures
or
declining
interest
rates.
These
foreclosed
or
refinanced
mortgages
are
paid
off
at
face
value
(par)
or
less,
causing
a
loss,
particularly
for
any
investor
who
may
have
purchased
the
security
at
a
premium
or
a
price
above
par.
In
such
an
environment,
this
risk
limits
the
potential
price
appreciation
of
these
securities.
Agency
Mortgage-Backed
Securities
Certain
MBS
may
be
issued
or
guaranteed
by
the
U.S.
government
or
a
government
sponsored
entity,
such
as
Fannie
Mae
(the
Federal
National
Mortgage
Association)
or
Freddie
Mac
(the
Federal
Home
Loan
Mortgage
Corporation).
Although
these
instruments
may
be
guaranteed
by
the
U.S.
government
or
a
government
sponsored
entity,
many
such
MBS
are
not
backed
by
the
full
faith
and
credit
of
the
United
States
and
are
still
exposed
to
the
risk
of
non-payment.
Privately
Issued
Mortgage-Backed
Securities
MBS
held
by
a
Fund
may
be
issued
by
private
issuers
including
commercial
banks,
savings
associations,
mortgage
companies,
investment
banking
firms,
finance
companies
and
special
purpose
finance
entities
(called
special
purpose
vehicles
or
SPVs)
and
other
entities
that
acquire
and
package
mortgage
loans
for
resale
as
MBS.
These
privately
issued
non-agency
MBS
may
offer
higher
yields
than
those
issued
by
government
agencies,
but
also
may
be
subject
to
greater
price
changes
than
governmental
issues.
Subprime
loans
refer
to
loans
made
to
borrowers
with
weakened
credit
histories
or
with
a
lower
capacity
to
make
timely
payments
on
their
loans.
Alt-A
loans
refer
to
loans
extended
to
borrowers
who
have
incomplete
documentation
of
income,
assets,
or
other
variables
that
are
important
to
the
credit
underwriting
processes.
Non-conforming
mortgages
are
loans
that
do
not
meet
the
standards
that
allow
purchase
by
government-sponsored
enterprises.
MBS
with
exposure
to
subprime
loans,
Alt-A
loans
or
nonconforming
loans
have
had
in
many
cases
higher
default
rates
than
those
loans
that
meet
government
underwriting
requirements.
The
risk
of
non-payment
is
greater
for
MBS
that
are
backed
by
mortgage
pools
that
contain
subprime,
Alt-A
and
non-conforming
loans,
but
a
level
of
risk
exists
for
all
loans.
Unlike
agency
MBS
issued
or
guaranteed
by
the
U.S.
government
or
a
government-sponsored
entity
(e.g.,
Fannie
Mae
and
Freddie
Mac),
MBS
issued
by
private
issuers
do
not
have
a
government
or
government-sponsored
entity
guarantee,
but
may
have
credit
enhancements
provided
by
external
entities
such
as
banks
or
financial
institutions
or
achieved
through
the
structuring
of
the
transaction
itself.
Examples
of
such
credit
support
arising
out
of
the
structure
of
the
transaction
include
the
issue
of
senior
and
subordinated
securities
(e.g.,
the
issuance
of
securities
by
an
SPV
in
multiple
classes
or
tranches,
with
one
or
more
classes
being
senior
to
other
subordinated
classes
as
to
the
payment
of
principal
and
interest,
with
the
result
that
defaults
on
the
underlying
mortgage
loans
are
borne
first
by
the
holders
of
the
subordinated
class);
creation
of
reserve
funds
(in
which
case
cash
or
investments,
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
169
sometimes
funded
from
a
portion
of
the
payments
on
the
underlying
mortgage
loans,
are
held
in
reserve
against
future
losses);
and
overcollateralization
(in
which
case
the
scheduled
payments
on,
or
the
principal
amount
of,
the
underlying
mortgage
loans
exceeds
that
required
to
make
payment
on
the
securities
and
pay
any
servicing
or
other
fees).
However,
there
can
be
no
guarantee
that
credit
enhancements,
if
any,
will
be
sufficient
to
prevent
losses
in
the
event
of
defaults
on
the
underlying
mortgage
loans.
In
addition,
MBS
that
are
issued
by
private
issuers
are
not
subject
to
the
underwriting
requirements
for
the
underlying
mortgages
that
are
applicable
to
those
MBS
that
have
a
government
or
government-sponsored
entity
guarantee.
As
a
result,
the
mortgage
loans
underlying
private
MBS
may,
and
frequently
do,
have
less
favorable
collateral,
credit
risk
or
other
underwriting
characteristics
than
government
or
government-sponsored
MBS
and
have
wider
variances
in
a
number
of
terms
including
interest
rate,
term,
size,
purpose
and
borrower
characteristics.
Privately
issued
pools
more
frequently
include
second
mortgages,
high
loan-to-value
mortgages
and
manufactured
housing
loans.
The
coupon
rates
and
maturities
of
the
underlying
mortgage
loans
in
a
private-label
MBS
pool
may
vary
to
a
greater
extent
than
those
included
in
a
government
guaranteed
pool,
and
the
pool
may
include
subprime
mortgage
loans.
Privately
issued
MBS
are
not
traded
on
an
exchange
and
there
may
be
a
limited
market
for
the
securities,
especially
when
there
is
a
perceived
weakness
in
the
mortgage
and
real
estate
market
sectors.
Without
an
active
trading
market,
MBS
held
in
a
Fund's
portfolio
may
be
particularly
difficult
to
value
because
of
the
complexities
involved
in
assessing
the
value
of
the
underlying
mortgage
loans.
Asset-Backed
Securities
ABS
may
include
MBS,
loans,
receivables
or
other
assets.
The
value
of
the
Funds’
ABS
may
be
affected
by,
among
other
things,
actual
or
perceived
changes
in
interest
rates,
factors
concerning
the
interests
in
and
structure
of
the
issuer
or
the
originator
of
the
receivables,
the
market’s
assessment
of
the
quality
of
underlying
assets
or
actual
or
perceived
changes
in
the
credit
worthiness
of
the
individual
borrowers,
the
originator,
the
servicing
agent
or
the
financial
institution
providing
the
credit
support.
Payment
of
principal
and
interest
may
be
largely
dependent
upon
the
cash
flows
generated
by
the
assets
backing
the
securities.
Rising
or
high
interest
rates
tend
to
extend
the
duration
of
ABS,
making
them
more
volatile
and
more
sensitive
to
changes
in
interest
rates.
The
underlying
assets
are
sometimes
subject
to
prepayments
which
can
shorten
the
security’s
weighted
average
life
and
may
lower
its
return.
Defaults
on
loans
underlying
ABS
have
become
an
increasing
risk
for
ABS
that
are
secured
by
home
equity
loans
related
to
sub-prime,
Alt-A
or
non-conforming
mortgage
loans,
especially
in
a
declining
residential
real
estate
market.
ABS
(other
than
MBS)
present
certain
risks
that
are
not
presented
by
MBS.
Primarily,
these
securities
may
not
have
the
benefit
of
any
security
interest
in
the
related
assets.
Credit
card
receivables
are
generally
unsecured
and
the
debtors
are
entitled
to
the
protection
of
a
number
of
state
and
federal
consumer
credit
laws,
many
of
which
give
such
debtors
the
right
to
set
off
certain
amounts
owed
on
the
credit
cards,
thereby
reducing
the
balance
due.
There
is
the
possibility
that
recoveries
on
repossessed
collateral
may
not,
in
some
cases,
be
available
to
support
payments
on
these
securities.
ABS
are
often
backed
by
a
pool
of
assets
representing
the
obligations
of
a
number
of
different
parties.
To
lessen
the
effect
of
failures
by
obligors
on
underlying
assets
to
make
payments,
the
securities
may
contain
elements
of
credit
support
which
fall
into
two
categories:
(i)
liquidity
protection,
and
(ii)
protection
against
losses
resulting
from
ultimate
default
by
an
obligor
on
the
underlying
assets.
Liquidity
protection
refers
to
the
provision
of
advances,
generally
by
the
entity
administering
the
pool
of
assets,
to
ensure
that
the
receipt
of
payments
on
the
underlying
pool
occurs
in
a
timely
fashion.
Protection
against
losses
results
from
payment
of
the
insurance
obligations
on
at
least
a
portion
of
the
assets
in
the
pool.
This
protection
may
be
provided
through
guarantees,
policies
or
letters
of
credit
obtained
by
the
issuer
or
sponsor
from
third
parties,
through
various
means
of
structuring
the
transaction
or
through
a
combination
of
such
approaches.
The
Fund
will
not
pay
any
additional
or
separate
fees
for
credit
support.
The
degree
of
credit
support
provided
for
each
issue
is
generally
based
on
historical
information
respecting
the
level
of
credit
risk
associated
with
the
underlying
assets.
Delinquency
or
loss
in
excess
of
that
anticipated
or
failure
of
the
credit
support
could
adversely
affect
the
return
on
an
investment
in
such
a
security.
The
availability
of
ABS
may
be
affected
by
legislative
or
regulatory
developments.
It
is
possible
that
such
developments
may
require
the
Funds
to
dispose
of
any
then-existing
holdings
of
such
securities.
Forward
Commitments
The
Strategic
Bond
Fund
may
contract
to
purchase
securities
for
a
fixed
price
at
a
future
date
beyond
customary
settlement
time.
The
price
of
the
underlying
securities
and
the
date
when
the
securities
will
be
delivered
and
paid
for
are
fixed
at
the
time
the
transaction
is
negotiated.
The
Fund
may
dispose
of
a
forward
commitment
transaction
prior
to
settlement
if
it
is
appropriate
to
do
so
and
may
realize
short-term
gains
(or
losses)
upon
such
sale.
When
effecting
such
transactions,
liquid
assets
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
170
Notes
to
Financial
Statements
The
Strategic
Bond
Fund
may
invest
in
to-be-announced
("TBA")
mortgage-backed
securities.
A
TBA
security
is
a
forward
mortgage-backed
securities
trade
in
which
a
seller
agrees
to
issue
a
TBA
mortgage-backed
security
at
a
future
date.
The
securities
are
purchased
and
sold
on
a
forward
commitment
basis
with
an
approximate
principal
amount
and
maturity
date.
The
actual
principal
amount
and
maturity
date
will
be
determined
upon
settlement
when
the
specific
mortgage
pools
are
assigned.
These
securities
are
within
the
parameters
of
industry
“good
delivery”
standards.
As
of
December
31,
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
(“FCA”),
which
regulates
LIBOR,
has
announced
plans
to
phase
out
the
use
of
LIBOR
by
the
end
of
2021.
However,
subsequent
announcements
by
the
FCA,
the
LIBOR
administrator
and
other
regulators
indicate
that
it
is
possible
that
certain
LIBORs
may
continue
beyond
2021
and
certain
of
the
most
widely
used
LIBORs
may
continue
until
mid-2023.
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
171
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.
Global
financial
markets
have
experienced
and
may
continue
to
experience
significant
volatility
resulting
from
the
spread
of
a
novel
coronavirus
known
as
COVID-19.
The
outbreak
of
COVID-19
has
resulted
in
travel
and
border
restrictions,
quarantines,
supply
chain
disruptions,
lower
consumer
demand
and
general
market
uncertainty.
The
effects
of
COVID-19
and
the
resulting
market
impact
have
and
may
continue
to
adversely
affect
the
global
economy,
the
economies
of
certain
nations
and
individual
issuers,
all
of
which
may
adversely
impact
a
Fund's
investments
and
performance.
Investment
Transactions
Securities
During
the
period
ended
December
31,
2020,
purchases
and
sales
of
investment
securities
(excluding
U.S.
government
and
agency
obligations,
short-term
investments,
options
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.
Each
Fund’s
investment
in
the
U.S.
Cash
Management
Fund
is
disclosed
within
the
Fund’s
Schedule
of
Investments.
In
addition,
all
or
a
portion
of
the
collateral
received
from
the
Investment
Company’s
securities
lending
program
is
invested
in
the
U.S.
Cash
Collateral
Fund,
an
unregistered
fund
advised
by
RIM.
Each
Fund’s
investment
in
the
U.S.
Cash
Collateral
Fund
is
disclosed
within
the
Fund’s
Schedule
of
Investments.
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
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.
Purchases
Sales
U.S.
Strategic
Equity
Fund
$
206,334,178
$
254,162,034
U.S.
Small
Cap
Equity
Fund
230,335,740
245,021,634
International
Developed
Markets
Fund
186,764,666
201,829,163
Strategic
Bond
Fund
326,162,306
299,125,442
Global
Real
Estate
Securities
Fund
829,641,024
769,856,867
Purchases
Sales
Strategic
Bond
Fund
$
390,596,938
$
419,880,562
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
172
Notes
to
Financial
Statements
The
following
table
shows
the
total
amount
of
each
of
these
fees
paid
by
the
Funds
for
the
period
ended
December
31,
2020:
There
were
no
advisory
fee
waivers
for
the
Funds
during
the
period.
RIM
does
not
have
the
ability
to
recover
amounts
waived
or
reimbursed
from
previous
periods.
Transfer
and
Dividend
Disbursing
Agent
RIFUS
serves
as
transfer
agent
and
provides
dividend
disbursing
services
to
the
Funds.
For
this
service,
RIFUS
is
paid
a
fee
based
upon
the
average
daily
net
assets
of
the
Funds
for
transfer
agency
and
dividend
disbursing
services.
RIFUS
retains
a
portion
of
this
fee
for
services
provided
to
the
Funds
and
pays
the
balance
to
unaffiliated
agents
who
assist
in
providing
these
services.
Transfer
agency
fees
paid
by
the
Funds
presented
herein
for
the
period
ended
December
31,
2020
were
as
follows:
Distributor
Russell
Investments
Financial
Services,
LLC
(the
“Distributor”),
a
wholly-owned
subsidiary
of
RIM,
serves
as
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.
Annual
Rate
Funds
Advisory
(%)
Administration
(%)
U.S.
Strategic
Equity
Fund
0.73
Up
to
0.05
U.S.
Small
Cap
Equity
Fund
0.90
Up
to
0.05
International
Developed
Markets
Fund
0.90
Up
to
0.05
Strategic
Bond
Fund
0.55
Up
to
0.05
Global
Real
Estate
Securities
Fund
0.80
Up
to
0.05
Advisory
Administration
U.S.
Strategic
Equity
Fund
$
3,568,673
$
244,429
U.S.
Small
Cap
Equity
Fund
1,746,702
97,039
International
Developed
Markets
Fund
3,115,784
173,099
Strategic
Bond
Fund
4,917,812
447,074
Global
Real
Estate
Securities
Fund
6,758,410
422,401
Amount
U.S.
Strategic
Equity
Fund
$
21,510
U.S.
Small
Cap
Equity
Fund
8,539
International
Developed
Markets
Fund
15,233
Strategic
Bond
Fund
39,343
Global
Real
Estate
Securities
Fund
37,171
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
173
During
the
period
ended
December
31,
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
33
funds
and
RIF,
which
has
9
funds.
Each
of
the
Trustees
is
a
Trustee
of
RIC
and
RIF.
The
Russell
Investments
Fund
Complex
compensates
each
Trustee
who
is
not
an
employee
of
RIM
or
its
affiliates.
Trustee
compensation
and
expenses
are
allocated
to
each
Fund
based
on
its
net
assets
relative
to
other
funds
in
the
Russell
Investments
Fund
Complex.
For
the
period
ended
December
31,
2020,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$1,730,750.
Federal
Income
Taxes
At
December
31,
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.
Available
capital
loss
carryforwards
are
as
follows:
Under
the
Regulated
Investment
Company
Modernization
Act
of
2010,
the
Funds
are
permitted
to
carry
forward
capital
losses
incurred
in
taxable
years
beginning
after
December
22,
2010
for
an
unlimited
period.
Additionally,
post-enactment
capital
losses
that
are
carried
forward
will
retain
their
character
as
either
short-term
or
long-term
capital
losses
rather
than
being
considered
all
short-term
as
under
previous
law.
Record
Ownership
At
December
31,
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.
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.
No
Expiration
Funds
Short
Term
Long-Term
Totals
U.S.
Strategic
Equity
Fund
$
1,556,196
$
—
$
1,556,196
U.S.
Small
Cap
Equity
Fund
2,109,113
—
2,109,113
International
Developed
Markets
Fund
—
3,655,970
3,655,970
Global
Real
Estate
Securities
Fund
51,263,350
6,613,138
57,876,488
#
of
Shareholders
%
U.S.
Strategic
Equity
Fund
2
78.4
U.S.
Small
Cap
Equity
Fund
2
74.4
International
Developed
Markets
Fund
2
72.4
Strategic
Bond
Fund
2
84.7
Global
Real
Estate
Securities
Fund
2
90.3
Report
of
Independent
Registered
Public
Accounting
Firm
174
Report
of
Independent
Registered
Public
Accounting
Firm
To
the
Board
of
Trustees
of
Russell
Investment
Funds
and
Shareholders
of
U.S.
Strategic
Equity
Fund,
U.S.
Small
Cap
Equity
Fund,
International
Developed
Markets
Fund,
Strategic
Bond
Fund
and
Global
Real
Estate
Securities
Fund
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
U.S.
Strategic
Equity
Fund,
U.S.
Small
Cap
Equity
Fund,
International
Developed
Markets
Fund,
Strategic
Bond
Fund
and
Global
Real
Estate
Securities
Fund
(five
of
the
funds
constituting
Russell
Investment
Funds,
hereafter
collectively
referred
to
as
the
“Funds”)
as
of
December
31,
2020,
the
related
statements
of
operations
for
the
year
ended
December
31,
2020,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2020,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2020
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
December
31,
2020,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2020
and
each
of
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2020
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
December
31,
2020
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
February
12,
2021
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Russell
Investments
family
of
funds
since
1981.
PricewaterhouseCoopers
LLP,
1420
Fifth
Avenue,
Suite
2800,
Seattle,
WA
98101
T:
(206)
398
3000,
F:
(206)
398
3100,
www.pwc.com/us
Russell
Investment
Funds
Tax
Information
—
December
31,
2020
(Unaudited)
Tax
Information
175
For
the
tax
year
ended
December
31,
2020,
the
Funds
designate
100%,
or
the
maximum
amount
allowable,
of
their
net
taxable
income
as
qualified
dividends
taxed
at
individual
net
capital
gain
rates.
The
Form
1099
you
receive
in
January
2021
will
show
the
tax
status
of
all
distributions
paid
to
your
account
in
calendar
year
2020.
The
Funds
designate
dividends
distributed
during
the
fiscal
year
as
qualifying
for
the
dividends
received
deduction
for
corporate
shareholders
as
follows:
Pursuant
to
Section
852
of
the
Internal
Revenue
Code,
the
Funds
designate
the
following
amounts
as
long-term
capital
gain
dividends
for
their
taxable
year
ended
December
31,
2020:
The
Funds
listed
below
paid
foreign
taxes
and
recognized
foreign
source
income
during
the
taxable
year
ended
December
31,
2020.
Pursuant
to
Section
853
of
the
Internal
Revenue
Code,
the
Funds
designate
the
following
per
share
amounts
of
foreign
taxes
paid
and
income
earned
from
foreign
sources:
Please
consult
a
tax
adviser
for
any
questions
about
federal
or
state
income
tax
laws.
U.S.
Strategic
Equity
100.0%
U.S.
Small
Cap
Equity
100.0%
International
Developed
Markets
0.0%
Global
Real
Estate
Securities
0.0%
Strategic
Bond
0.0%
U.S.
Strategic
Equity
$
4,482,632
U.S.
Small
Cap
Equity
4,887,295
International
Developed
Markets
—
Global
Real
Estate
Securities
—
Strategic
Bond
14,960,631
Fund
Name
Foreign
Taxes
Paid
Foreign
Taxes
Paid
Per
Share
Foreign
Source
Income
Foreign
Source
Income
Per
Share
International
Developed
Markets
$
833,126
$
0.0257
$
8,101,663
$
0.2495
Russell
Investment
Funds
Affiliated
Brokerage
Transactions
—
December
31,
2020
(Unaudited)
176
Affiliated
Brokerage
Transactions
As
discussed
in
the
Note
4
in
the
Notes
to
Financial
Statements
contained
in
this
annual
report,
the
Funds
utilize
RIIS
and
its
independent
brokers.
RIIS
is
a
registered
broker
dealer
and
investment
adviser
and
an
affiliate
of
RIM.
RIIS
uses
a
multi-venue
trade
management
approach
whereby
RIIS
allocates
trades
among
RIIS’
network
of
independent
brokers
for
execution,
clearing,
and
other
services.
Trades
placed
through
RIIS
and
its
independent
brokers
are
made
(i)
to
manage
trading
associated
with
changes
in
money
managers,
rebalancing
across
existing
money
managers,
cash
flows
and
other
portfolio
transitions,
(ii)
to
execute
portfolio
securities
transactions
for
the
portion
of
each
Fund’s
assets
that
RIM
determines
not
to
allocate
to
money
managers,
(iii)
to
execute
portfolio
securities
transactions
for
the
portion
of
a
Fund’s
assets
that
RIM
manages
based
upon
model
portfolios
provided
by
the
Funds’
non-
discretionary
managers,
(iv)
to
execute
money
manager
portfolio
securities
transactions
for
the
segment
of
a
Fund’s
portfolio
assigned
to
the
money
manager,
or
(v)
to
execute
foreign
currency
transactions
on
behalf
of
the
Funds.
RIM
has
authorized
RIIS
to
effect
certain
futures,
swaps,
OTC
derivative
transactions,
and
cleared
swaps,
including
foreign
currency
spots,
forwards
and
options
trading
on
behalf
of
the
Funds.
Amounts
retained
by
RIIS
for
the
period
ended
December
31,
2020
were
as
follows:
Fund
Name
U.S.
Strategic
Equity
Fund
$
20,275
U.S.
Small
Cap
Equity
Fund
56,746
International
Developed
Markets
Fund
58,687
Strategic
Bond
Fund
—
Global
Real
Estate
Securities
Fund
166,727
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Contracts
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Contracts
177
Quarterly
Approval
of
Money
Manager
Contracts
The
Board
received
the
following
proposals
from
RIM
at
the
quarterly
Board
meeting
held
on
December
8,
2020:
to
approve
new
portfolio
management
contracts
for
the
Strategic
Bond
Fund
with
respect
to
a
new
Money
Manager,
and
for
the
U.S.
Small
Cap
Equity
Fund
resulting
from
a
pending
change
of
control
for
an
existing
Money
Manager.
With
respect
to
the
portfolio
management
contract
for
a
new
Money
Manager
for
the
Strategic
Bond
Fund,
the
Trustees
approved
the
terms
of
the
proposed
new
portfolio
management
contract
based
upon
RIM’s
recommendation
to
hire
the
Money
Manager
at
the
proposed
fee
rate;
information
as
to
the
reason
for
the
proposed
Money
Manager
hire;
information
as
to
the
Money
Manager’s
role
in
the
management
of
the
Fund’s
investment
portfolio
(including
the
amount
of
Fund
assets
to
be
allocated
to
the
Money
Manager
or
managed
pursuant
to
the
Money
Manager’s
strategy)
and
RIM’s
evaluation
of
the
anticipated
quality
of
the
investment
advisory
services
to
be
provided
by
the
Money
Manager;
performance
information
of
the
new
Money
Manager;
information
as
to
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Fund’s
underwriter
(“RIFIS”);
and
the
CCO’s
evaluation
of
the
Money
Manager’s
compliance
program,
policies
and
procedures
in
relation
to
the
Money
Manager’s
role
in
the
management
of
the
Fund’s
investment
portfolio,
and
certification
that
they
were
consistent
with
applicable
legal
standards;
RIM’s
explanation
as
to
the
lack
of
relevance
of
Money
Manager
profitability
to
the
evaluation
of
portfolio
management
contracts
with
Money
Managers
because
the
willingness
of
Money
Managers
to
serve
in
such
capacity
depends
upon
arm’s-length
negotiations
with
RIM;
RIM’s
awareness
of
the
standard
fee
rates
charged
by
the
Money
Manager
to
other
clients;
RIM’s
belief
that
the
proposed
Money
Manager
fees
would
be
reasonable
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered;
the
increase
or
decrease
in
aggregate
Money
Manager
fees
to
be
paid
by
RIM
from
its
advisory
fee
as
a
result
of
the
engagement
of
the
Money
Manager;
and
the
expected
costs
of
transitioning
Fund
assets
to
the
Money
Manager
or
its
strategy.
With
respect
to
the
portfolio
management
contract
for
an
existing
Money
Manager
of
the
U.S.
Small
Cap
Equity
Fund
related
to
a
pending
change
of
control,
the
Trustees
approved
the
terms
of
the
proposed
new
portfolio
management
contract
based
upon
RIM’s
recommendation
to
enter
into
a
new
portfolio
management
contract
with
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
strategy
to
be
utilized
in
the
management
of
the
Fund’s
investment
portfolio
and
RIM’s
recommendation
and
research
ranking
assigned
to
the
Money
Manager;
information
provided
by
RIM
that
there
are
no
expected
changes
to
the
Money
Manager’s
investment
process,
day-to-day
operations
or
services
as
a
result
of
the
change
of
control;
information
as
to
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
RIFIS;
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
the
Money
Manager
would
have
no
impact
on
the
aggregate
Money
Manager
fees
to
be
paid
by
RIM
from
its
advisory
fee.
The
Trustees
considered
RIM’s
prior
explanations,
including
in
connection
with
the
Board’s
most
recent
evaluation
and
approval
of
the
Funds’
existing
investment
advisory
agreements
with
RIM
and
then
current
Money
Managers
for
the
Funds,
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’
approvals
also
reflected
their
findings
at
prior
meetings,
including
their
May
18-19,
2020
meeting
in
connection
with
their
evaluation
and
approval
of
the
Funds’
existing
investment
advisory
agreements
with
RIM
and
then
current
Money
Managers
for
the
Funds,
as
well
as
information
received
throughout
the
course
of
the
year
regarding,
among
other
things,
the
quality
of
services
provided
to
the
Funds
in
the
case
of
the
existing
Money
Manager
and
the
reasonableness
of
the
aggregate
investment
advisory
fees
paid
by
the
Funds,
as
well
as
the
fact
that
the
aggregate
investment
advisory
fees
paid
by
the
Funds
would
not
increase
or
decrease
as
a
result
of
the
implementation
of
the
proposed
new
portfolio
management
contracts
because
the
Money
Managers’
investment
advisory
fees
are
paid
by
RIM.
Russell
Investment
Funds
Shareholder
Requests
for
Additional
Information
—
December
31,
2020
(Unaudited)
178
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,
2020
are
available
(i)
free
of
charge,
upon
request,
by
calling
the
Funds
at
(800)
787-7354,
and
(ii)
on
the
Securities
and
Exchange
Commission’s
website
at
www.sec.gov.
If
possible,
depending
on
contract
owner
registration
and
address
information,
and
unless
you
have
otherwise
opted
out,
only
one
copy
of
the
RIF
prospectus
and
each
annual
and
semi-annual
report
will
be
sent
to
contract
owners
at
the
same
address.
If
you
would
like
to
receive
a
separate
copy
of
these
documents,
please
contact
your
Insurance
Company.
If
you
currently
receive
multiple
copies
of
the
prospectus,
annual
report
and
semi-annual
report
and
would
like
to
request
to
receive
a
single
copy
of
these
documents
in
the
future,
please
call
your
insurance
company.
Some
insurance
companies
may
offer
electronic
delivery
of
the
Funds’
prospectuses
and
annual
and
semi-annual
reports.
Please
contact
your
insurance
company
for
further
details.
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers
—
December
31,
2020
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
179
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
33
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)
42
None
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)
42
Lead
Independent
Director,
Avista
Corp.
(electric
utilities)
Until
May
2017,
Director,
Avista
Corp
(electric
utilities)
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
December
31,
2020
(Unaudited)
180
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)
42
Trustee
and
Chairperson
of
Select
Sector
SPDR
Funds
(investment
company)
From
August
2012
through
May
2016,
Trustee,
ALPS
Series
Trust
(investment
company)
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
42
None
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)
42
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
December
31,
2020
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
181
*
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
42
None
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
42
None
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
42
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
—
December
31,
2020
(Unaudited)
182
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
—
December
31,
2020
(Unaudited)
Adviser,
Money
Managers
and
Service
Providers
183
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
and
Chief
Legal
Officer
Adviser
Russell
Investment
Management,
LLC
1301
Second
Avenue
Seattle, WA
98101
Administrator
and
Transfer
and
Dividend
Disbursing
Agent
Russell
Investments
Fund
Services,
LLC
1301
Second
Avenue
Seattle, WA
98101
Custodian
State
Street
Bank
and
Trust
Company
1
Heritage
Drive
North
Quincy,
MA
02171
Office
of
Shareholder
Inquiries
1301
Second
Avenue
Seattle, WA
98101
(800)
787-7354
Legal
Counsel
Dechert
LLP
One
International
Place,
40th
Floor
100
Oliver
Street
Boston, MA
02110
Distributor
Russell
Investments
Financial
Services,
LLC
1301
Second
Avenue
Seattle,
WA
98101
Independent
Registered
Public
Accounting
Firm
PricewaterhouseCoopers
LLP
1420
5th
Avenue,
Suite
2800
Seattle,
WA
98101
Money
Managers
U.S.
Strategic
Equity
Fund
Brandywine
Global
Investment
Management,
LLC,
Philadelphia,
PA
HS
Management
Partners,
LLC,
New
York,
NY
Jackson
Square
Partners,
LLC,
San
Francisco,
CA
Jacobs
Levy
Equity
Management,
Inc., Florham
Park, NJ
U.S.
Small
Cap
Equity
Fund
Ancora
Advisors,
LLC,
Mayfield
Heights,
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
Investment
Partners
Limited,
London,
United
Kingdom
and
Intermede
Global
Partners
Inc.,
San
Francisco,
CA
Pzena
Investment
Management
LLC,
New
York,
NY
Wellington
Management
Company
LLP,
Boston,
MA
Strategic
Bond
Fund
BlueBay
Asset
Management
LLP,
London,
United
Kingdom
Colchester
Global
Investors
Limited,
London,
United
Kingdom
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
Alternatives
Asset
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
ANNUAL
REPORT
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
DECEMBER
31,
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
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
In-
stead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
supported
by
your
financial
professional
or
variable
annuity
provider,
you
may
elect
to
receive
shareholder
reports
and
other
Fund
communications
electronically.
Please
contact
your
financial
profes-
sional
or
variable
annuity
provider
for
more
information.
You
may
elect
to
receive
all
future
shareholder
reports
in
paper
free
of
charge.
Please
contact
your
financial
professional
or
variable
annuity
provider
to
inform
them
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports.
Your
election
to
receive
reports
in
paper
will
apply
to
all
Russell
Investment
Funds
and
other
funds
you
hold
with
your
financial
professional
or
variable
annuity
provider.
Russell
Investment
Funds
Russell
Investment
Funds
is
a
series
investment
company
with
nine
different
investment
portfolios
referred
to
as
Funds.
These
financial
statements
report
on
four
of
these
Funds.
Page
To
Our
Shareholders
3
Moderate
Strategy
Fund
4
Balanced
Strategy
Fund
21
Growth
Strategy
Fund
39
Equity
Growth
Strategy
Fund
57
Notes
to
Schedule
of
Investments
75
Notes
to
Financial
Highlights
76
Notes
to
Financial
Statements
77
Report
of
Independent
Registered
Public
Accounting
Firm
91
Tax
Information
92
Shareholder
Requests
for
Additional
Information
93
Disclosure
of
Information
about
Fund
Trustees
and
Officers
94
Adviser
and
Service
Providers
98
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Annual
Report
December
31,
2020
Table
of
Contents
Russell
Investment
Funds
-
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Copyright
©
Russell
Investments
2021.
All
rights
reserved.
Russell
Investments’
ownership
is
composed
of
a
majority
stake
held
by
funds
managed
by
TA
Associates
with
minority
stakes
held
by
funds
managed
by
Reverence
Capital
Partners
and
Russell
Investments’
management.
Frank
Russell
Company
is
the
owner
of
the
Russell
trademark
contained
in
this
material
and
all
trademark
rights
related
to
the
Russell
trademarks,
which
the
members
of
the
Russell
Investment
group
of
companies
are
permitted
to
use
under
license
from
Frank
Russell
Company.
The
members
of
the
Russell
Investments
group
of
companies
are
not
affiliated
in
any
manner
with
Frank
Russell
Company
or
any
entity
operation
under
the
“FTSE
RUSSELL”
brand.
Fund
objectives,
risks,
charges
and
expenses
should
be
carefully
considered
before
in-
vesting.
A
prospectus
containing
this
and
other
important
information
must
precede
or
accompany
this
material.
Please
read
the
prospectus
carefully
before
investing.
Securities
distributed
through
Russell
Investments
Financial
Services,
LLC,
member
FINRA
and
part
of
Russell
Investments.
Indices
and
benchmarks
are
unmanaged
and
cannot
be
invested
in
directly.
Returns
represent
past
performance,
are
not
a
guarantee
of
future
performance,
and
are
not
indicative
of
any
specific
investment.
Index
return
information
is
provided
by
vendors
and
although
deemed
reliable,
is
not
guaranteed
by
Russell
Investments
or
its
affiliates.
Performance
quoted
represents
past
performance
and
does
not
guarantee
future
results.
The
investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
To
Our
Shareholders
To
Our
Shareholders
3
Fellow
Investors,
Our
primary
focus
has
never
changed:
It
is
to
improve
the
financial
security
of
our
investors.
We
believe
that
the
combination
of
our
investment
solutions,
a
sound
plan
and
timely
investment
advice
provides
the
best
strategy
for
those
individuals
seeking
to
navigate
the
difficult
world
of
investing.
Your
financial
security
is
the
reason
we
work
hard
to
maintain
a
time-tested,
disciplined
investment
approach,
focused
on
meeting
our
clients’
financial
needs.
The
chaotic
year
of
2020,
with
the
combination
of
COVID-19
and
presidential
elections,
has
made
for
a
bumpy
ride,
with
a
dramatic
return
of
market
volatility:
For
the
one-year
period
ended
December
31,
2020,
despite
market
volatility,
U.S.
equities
returned
18.40%,
according
to
the
S&P
500
®
Index.
*
In
comparison,
non-U.S.
equities,
as
measured
by
the
MSCI
EAFE
Index,
provided
a
positive
return
of
7.82%
over
the
one-year
period.
*
The
volatility
of
2020
made
it
challenging
for
some
individuals
to
stick
to
their
investment
plans.
It
can
be
quite
tempting
to
get
distracted
and
try
to
move
to
those
areas
that
have
been
working,
abandoning
those
that
have
not.
But
if
this
year
has
taught
us
any
lesson,
it
is
that
we
believe
those
who
stick
to
their
long-term
investment
plans
are
consistently
rewarded.
As
a
forward-looking
firm,
we
maintain
our
focus
and
look
to
position
our
funds
for
the
year
ahead,
not
the
one
that
has
just
passed.
With
this
in
mind,
we
hold
the
following
views
on
markets:
We
continue
to
believe
in
diversifying
globally.
We
prefer
non-U.S.
equities
to
U.S.
equities.
We
expect
the
post-
vaccine
economic
recovery
to
favor
undervalued
cyclical
value
stocks
over
expensive
technology
and
growth
stocks.
We
like
the
value
in
emerging
markets
(EM)
equities.
We
believe
China’s
early
exit
from
the
lockdown
and
stimulus
measures
will
likely
benefit
EM
more
broadly,
as
should
the
recovery
in
global
demand
and
a
weaker
U.S.
dollar.
We
believe
that
vaccine
prospects
are
likely
to
make
2021
a
year
of
global
economic
recovery.
While
markets
have
priced
in
a
fair
amount
of
the
good
news,
more
gains
seem
possible
as
corporate
profits
rebound
and
central
banks
remain
on
hold.
With
the
world
in
the
early
post-recession
recovery
phase
of
the
business
cycle,
our
medium-term
outlook
for
economies
and
corporate
earnings
is
positive.
We
believe
that
2021
will
feature
an
extended
period
of
low-inflation,
low-interest
rate
growth
that
favors
equities
over
bonds.
Let
me
reiterate
that
at
Russell
Investments,
our
stated
purpose
is
to
improve
people’s
financial
security.
We
have
a
long
heritage
of
providing
solutions
to
help
investors
like
you
reach
your
financial
goals,
whether
you’re
saving
for
retirement,
already
depending
on
retirement
income
or
building
a
college
fund.
There
is
nothing
we
value
more
than
the
trust
you
have
placed
in
our
firm.
All
of
us
at
Russell
Investments
appreciate
the
opportunity
to
help
you
achieve
your
own
financial
security.
Best
regards,
Peter
Gunning
Global
Chief
Investment
Officer,
Russell
Investments
*
Source:
S&P
and
MSCI.
Indexes
are
unmanaged
and
cannot
be
invested
in
directly.
The
S&P
500
Index
is
an
index,
with
dividends
reinvested,
of
500
issues
representative
of
leading
companies
in
the
U.S.
large
cap
securities
market.
The
MSCI
EAFE
Index
is
an
equity
index
which
captures
large
and
mid
cap
representation
across
21
developed
markets
countries
around
the
world,
excluding
the
US
and
Canada.
Russell
Investment
Funds
Moderate
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
4
Moderate
Strategy
Fund
Moderate
Strategy
Fund
Total
Return
1
Year
6
.40%
5
Years
6
.15%§
10
Years
5
.13%§
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
**
Total
Return
1
Year
7
.51%
5
Years
4
.44%§
10
Years
3
.84%§
Russell
1000
®
Index
***
Total
Return
1
Year
20
.96%
5
Years
15
.60%§
10
Years
14
.01%§
Russell
Investment
Funds
Moderate
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
Moderate
Strategy
Fund
5
The
Moderate
Strategy
Fund
(the
“Fund”)
is
a
fund
of
funds
that
invests
principally
in
other
Russell
Investment
Funds
(“RIF”)
and
Russell
Investment
Company
(“RIC”)
mutual
funds
(the
“Underlying
Funds”).
The
Underlying
Funds
employ
a
multi-
manager
approach
whereby
most
assets
of
the
Underlying
Funds
are
allocated
to
the
strategies
of
different
unaffiliated
money
managers.
Underlying
Fund
assets
not
allocated
to
money
manager
strategies
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
and
Underlying
Funds’
advisor.
RIM,
as
the
Underlying
Funds’
advisor,
may
change
the
allocation
of
the
Underlying
Funds’
assets
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
in
an
Underlying
Fund
at
any
time,
subject
to
approval
by
the
Underlying
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
an
Underlying
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
current
income
and
moderate
long
term
capital
appreciation.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
gained
6.40%.
This
is
compared
to
the
Fund’s
primary
benchmark,
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
which
gained
7.51%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Allocation
–
30%
to
50%
Equity
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
8.93%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
For
the
fiscal
year
ended
December
31,
2020,
broad
U.S.
large
cap
equity
market
returns
were
positive
on
an
absolute
basis
led
by
risk-on
sentiment
following
periods
of
extreme
volatility.
With
the
rise
in
COVID-19
cases
resulting
in
economic
shutdown
and
recession,
asset
class
returns
were
mixed
in
absolute
terms
led
by
U.S.
large
cap
equity
and
risky
credits,
while
haven
assets
such
as
U.S.
treasuries
lagged.
With
respect
to
fixed
income,
the
fiscal
year
risk-on
rally
was
slightly
less
obvious,
as
risky
credits
outperformed
haven
U.S.
treasuries,
however
credit
risk
was
led
by
high
yield
debt
with
the
aggregate
bond
universe
trailing
closely
behind.
Investment
grade
debt
and
treasuries
found
support
by
an
accommodative
Federal
Reserve
policy,
resulting
in
returns
of
7.51%
and
3.14%,
respectively
(as
measured
by
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
and
ICE
BofA
1-3
Year
US
Treasury
Index).
High
yield
credit
outperformed,
as
the
ICE
BofA
Global
High
Yield
Index
returned
8.03%
over
the
period.
Loans
and
emerging
market
debt
underperformed.
Equities
were
the
highest
returning
asset
class,
led
by
market
leadership
within
U.S.
large
cap
growth
companies.
With
respect
to
regions,
U.S.
equities
outperformed
their
developed
non-U.S.
peers,
with
the
Russell
1000
®
Index
returning
20.96%,
while
the
MSCI
ACWI
ex
USA
Index
(Net)
returned
10.65%
and
emerging
market
shares
returned
16.68%
as
measured
by
the
MSCI
Emerging
Markets
Index
(Net).
Regional
return
spreads
were
even
more
significant
in
certain
areas,
for
example,
with
U.K.
and
European
ex-U.K.
equities
returning
-10.34%
and
11.58%
respectively,
as
measured
by
the
MSCI
United
Kingdom
Index
and
MSCI
Europe
ex
UK
Index.
Within
U.S.
equities,
large
cap
equities
outperformed
their
more
cyclical
small
cap
peers,
and
growth-oriented
equites
strongly
outperformed
their
value
peers
with
return
spreads
widening
beyond
historical
measures.
Last,
within
alternative
assets,
commodities
declined
as
oil
prices
plunged
on
the
heels
of
demand
concerns.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
the
Underlying
Funds
affect
the
Fund’s
performance?
The
Fund
is
a
fund
of
funds
and
its
performance
is
based
on
RIM’s
strategic
asset
allocations,
the
performance
of
the
Underlying
Funds
in
which
the
Fund
invests,
and
tactical
changes
in
the
Fund’s
asset
allocation
throughout
the
year.
In
order
to
seek
to
achieve
the
Fund’s
objective
during
the
period,
RIM’s
strategic
asset
allocation
included
investments
in
global
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds.
Broadly,
the
Fund’s
asset
allocation
was
a
detractor
to
performance
relative
to
the
Fund’s
fixed
income
benchmark
during
the
period.
Allocations
to
U.S.
equities,
non-U.S.
equities
and
U.S.
small
cap
equities
were
additive.
Overall
performance
of
the
fixed
income
Underlying
Funds
relative
to
the
Fund’s
benchmark
was
negative.
An
allocation
to
commodities
hindered
performance,
as
this
asset
class
struggled
against
equities
and
fixed
income.
The
fixed
income
portion
of
the
Fund’s
portfolio
provided
overall
negative
results
compared
to
the
Fund’s
fixed
income
benchmark.
An
allocation
to
the
RIF
Strategic
Bond
Fund
was
moderately
positive
from
a
benchmark-relative
perspective
as
a
result
of
its
modestly
long
duration
position.
Given
falling
rates
throughout
the
year,
an
allocation
to
the
RIC
Investment
Grade
Bond
Fund
was
modestly
positive
as
well,
and
Fund
performance
benefited
from
its
long
duration
position.
An
allocation
to
the
RIC
Unconstrained
Total
Return
Fund
detracted,
as
the
substantial
Russell
Investment
Funds
Moderate
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
6
Moderate
Strategy
Fund
drawdown
in
March
more
than
offset
gains
made
in
other
periods
given
the
impact
on
commercial
property.
Over
the
one-year
period,
the
broader
equity
markets
delivered
strong
absolute
performance
and
the
Fund’s
equity
allocation
outperformed
the
Fund’s
fixed
income
benchmark.
However,
most
equity
Underlying
Funds
underperformed
their
respective
equity
benchmarks.
The
RIF
U.S.
Strategic
Equity
Fund
outperformed
its
benchmark
due
to
stock
selection
within
the
technology
sector,
while
underweights
to
the
real
estate
and
consumer
staples
sectors
were
additive.
An
allocation
to
the
RIF
U.S.
Small
Cap
Equity
Fund,
however,
detracted
due
to
its
tilt
toward
companies
with
lower
valuation.
Furthermore,
the
RIC
Emerging
Markets
Fund
underperformed
its
underlying
benchmark
based
on
its
underweight
to
the
consumer
discretionary
sector.
The
multi-asset
portion
of
the
Fund’s
portfolio
underperformed
the
Fund’s
fixed
income
benchmark.
The
RIC
Multi-Strategy
Income
Fund’s
global
equity
value
managers
were
laggards
over
the
period,
with
style
headwinds
proving
difficult
over
the
one-
year
period.
In
addition,
the
Underlying
Fund’s
tactical
regional
positioning,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
a
U.S.
equity
underweight,
was
challenged
over
the
period.
The
alternative
assets
portion
of
the
Fund’s
portfolio,
through
an
allocation
to
the
RIC
Commodity
Strategies
Fund,
provided
negative
results
compared
to
the
Fund’s
fixed
income
benchmark.
The
Underlying
Fund
struggled
against
its
respective
benchmark
as
oil
prices
fell,
while
an
overweight
to
the
softs
sector
detracted
from
performance
as
well.
Describe
any
changes
to
the
Fund’s
structure
or
allocation
to
the
Underlying
Funds.
RIM
has
the
discretion
to
vary
the
Fund’s
actual
allocation
from
the
target
strategic
asset
allocation
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
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.
During
the
period,
RIM
used
equity
and
fixed-income
derivatives
to
help
maintain
tactical
asset
allocation
preferences,
in
addition
to
implementing
risk-mitigation
strategies.
RIM
used
derivative
contracts,
such
as
equity
index
futures,
as
well
as
treasury
futures
to
help
efficiently
implement
tactical
asset
allocations.
In
addition,
standardized
call
and
put
options
were
used
to
limit
risk,
including
through
the
purchase
and
sale
of
contracts
to
limit
downside
risk,
generate
income,
and
implement
tactical
spread
views
dependent
on
the
current
and
expected
future
states
of
volatility.
The
use
of
derivatives
was
particularly
additive
to
Fund
performance
during
the
extreme
levels
of
volatility
seen
in
Q1
2020
as
COVID-19
resulted
in
economic
shutdown
and
broad
market
equities
dramatically
fell.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
RIF
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
*
Assumes
initial
investment
on
January
1,
2011.
**
The
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
is
an
index,
with
income
reinvested,
generally
representative
of
intermediate-term
government
bonds,
investment
grade
corporate
debt
securities
and
mortgage-backed
securities.
***
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Moderate
Strategy
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
Moderate
Strategy
Fund
7
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,120.50
$
1,024.43
Expenses
Paid
During
Period*
$
0.75
$
0.71
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.14
%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(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
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
8
Moderate
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
95.6%
Alternative
-
2.0%
RIC
Commodity
Strategies
Fund
Class
Y
363,378
1,857
Domestic
Equities
-
14.0%
RIF
U.S.
Small
Cap
Equity
Fund
418,200
6,587
RIF
U.S.
Strategic
Equity
Fund
328,203
6,426
13,013
Fixed
Income
-
49.9%
RIC
Investment
Grade
Bond
Fund
Class
Y
473,677
10,677
RIC
Unconstrained
Total
Return
Fund
Class
Y
2,609,039
24,994
RIF
Strategic
Bond
Fund
978,943
10,651
46,322
International
Equities
-
18.0%
RIC
Emerging
Markets
Fund
Class
Y
216,416
4,627
RIC
Global
Equity
Fund
Class
Y
798,834
6,510
RIF
International
Developed
Markets
Fund
453,132
5,519
16,656
Multi-Asset
-
11.7%
RIC
Multi-Strategy
Income
Fund
Class
Y
1,059,418
10,901
Total
Investments
in
Affiliated
Funds
(cost
$80,896)
88,749
Short-Term
Investments
-
2.3%
U.S.
Cash
Management
Fund(@)
2,085,957
(∞)
2,086
Total
Short-Term
Investments
(cost
$2,086)
2,086
Total
Investments
-
97.9%
(identified
cost
$82,982)
90,835
Other
Assets
and
Liabilities,
Net
-
2.1%
1,963
Net
Assets
-
100.0%
92,798
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
9
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
Euro
STOXX
50
Index
Futures
126
EUR
4,473
03/21
98
FTSE
100
Index
Futures
31
GBP
1,990
03/21
(24)
S&P
500
E-Mini
Index
Futures
38
USD
7,123
03/21
207
United
States
Treasury
Ultra
Bond
Futures
27
USD
5,766
03/21
(81)
Short
Positions
NASDAQ
100
E-Mini
Index
Futures
17
USD
4,381
03/21
(174)
Russell
2000
E-Mini
Index
Futures
13
USD
1,284
03/21
(39)
TOPIX
Index
Futures
6
JPY
108,270
03/21
(28)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(41)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
TWD
9,520
USD
343
03/17/21
—
Bank
of
New
York
USD
372
EUR
307
03/17/21
3
Bank
of
New
York
USD
401
GBP
298
03/17/21
8
Bank
of
New
York
USD
380
JPY
39,503
03/17/21
3
Bank
of
New
York
HKD
3,883
USD
501
03/17/21
—
JPMorgan
Chase
USD
1,002
HKD
7,765
03/17/21
—
Royal
Bank
of
Canada
USD
373
EUR
307
03/17/21
3
Royal
Bank
of
Canada
USD
402
GBP
298
03/17/21
6
Royal
Bank
of
Canada
USD
380
JPY
39,503
03/17/21
3
Royal
Bank
of
Canada
HKD
3,883
USD
501
03/17/21
—
State
Street
USD
320
KRW
349,910
03/17/21
1
State
Street
USD
345
TWD
9,520
03/17/21
(2)
UBS
KRW
349,910
USD
323
03/17/21
1
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
26
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
NA
High
Yield
Index
Bank
of
America
Purchase
USD
7,800
(5.000%)
(2)
12/20/25
(527)
(212)
(739)
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
3,200
(1.000%)
(2)
12/20/25
(77)
(2)
(79)
Total
Open
Credit
Indices
Contracts
(å)
(604)
(214)
(818)
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
Moderate
Strategy
Fund
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Investments
in
Affiliated
Funds
$
88,749
$
—
$
—
$
—
$
88,749
95.6
Short-Term
Investments
—
—
—
2,086
2,086
2.3
Total
Investments
88,749
—
—
2,086
90,835
97.9
Other
Assets
and
Liabilities,
Net
2.1
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
305
—
—
—
305
0.3
Foreign
Currency
Exchange
Contracts
—
28
—
—
28
—
*
'
Liabilities
Futures
Contracts
(346)
—
—
—
(346)
(0.4)
Foreign
Currency
Exchange
Contracts
—
(2)
—
—
(2)
(—)*
Credit
Default
Swap
Contracts
—
(818)
—
—
(818)
(0.9)
Total
Other
Financial
Instruments
**
$
(41)
$
(792)
$
—
$
—
$
(833)
*
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Moderate
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
11
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
$
—
$
—
$
28
$
—
Variation
margin
on
futures
contracts*
305
—
—
—
Total
$
305
$
—
$
28
$
—
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
265
$
—
$
—
$
81
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
2
—
Credit
default
swap
contracts,
at
fair
value
—
818
—
—
Total
$
265
$
818
$
2
$
81
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
$
(325)
$
—
$
—
$
132
Credit
default
swap
contracts
—
(557)
—
—
Foreign
currency
exchange
contracts
—
—
133
—
Total
$
(325)
$
(557)
$
133
$
132
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
335
$
—
$
—
$
(81)
Credit
default
swap
contracts
—
(334)
—
—
Foreign
currency
exchange
contracts
—
—
7
—
Total
$
335
$
(334)
$
7
$
(81)
*
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
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
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
$
28
$
—
$
28
Total
Financial
and
Derivative
Assets
28
—
28
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
28
$
—
$
28
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Bank
of
America
$
1
$
1
$
—
$
—
JPMorgan
Chase
7
—
—
7
Royal
Bank
of
Canada
7
—
—
7
State
Street
6
—
—
6
UBS
7
—
—
7
Total
$
28
$
1
$
—
$
27
Russell
Investment
Funds
Moderate
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
13
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
2
$
—
$
2
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
818
—
818
Total
Financial
and
Derivative
Liabilities
820
—
820
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
820
$
—
$
820
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
$
820
$
1
$
819
$
—
Total
$
820
$
1
$
819
$
—
^ 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.
14
Moderate
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
82,982
Investments,
at
fair
value(>)
...........................................................................................................................................................
90,835
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
28
Receivables:
Dividends
and
interest
.......................................................................................................................................................
1
Investments
sold
................................................................................................................................................................
132
Fund
shares
sold
................................................................................................................................................................
6
From
affiliates
....................................................................................................................................................................
4
From
broker(a)(b)
...............................................................................................................................................................
2,870
Total
assets
.................................................................................................................................................
93,876
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
136
Accrued
fees
to
affiliates
....................................................................................................................................................
4
Other
accrued
expenses
.....................................................................................................................................................
77
Variation
margin
on
futures
contracts
.................................................................................................................................
41
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
2
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
818
Total
liabilities
.............................................................................................................................................
1,078
Net
Assets
............................................................................................................................................................
$
92,798
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
15
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
8,365
Shares
of
beneficial
interest
...........................................................................................................................................................
89
Additional
paid-in
capital
..............................................................................................................................................................
84,344
Net
Assets
............................................................................................................................................................
$
92,798
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.48
Net
assets
...............................................................................................................................................................................
$
92,797,815
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
8,858,974
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(604)
(>)
Investments
in
affiliated
funds
$
90,835
(a)
Receivable
from
Broker
for
Futures
$
1,572
(b)
Receivable
from
Broker
for
Swaps
$
1,298
(#)
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.
16
Moderate
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
1,652
Expenses
Advisory
fees
....................................................................................................................................................................
181
Administrative
fees
...........................................................................................................................................................
38
Custodian
fees
...................................................................................................................................................................
59
Transfer
agent
fees
............................................................................................................................................................
4
Professional
fees
...............................................................................................................................................................
44
Trustees’
fees
....................................................................................................................................................................
4
Printing
fees
......................................................................................................................................................................
18
Miscellaneous
...................................................................................................................................................................
8
Expenses
before
reductions
..............................................................................................................................................
356
Expense
reductions
...........................................................................................................................................................
(229)
Net
expenses
.................................................................................................................................................................................
127
Net
investment
income
(loss)
........................................................................................................................................................
1,525
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(480)
Futures
contracts
..............................................................................................................................................................
(193)
Foreign
currency
exchange
contracts
................................................................................................................................
133
Credit
default
swap
contracts
............................................................................................................................................
(557)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
2,013
Net
realized
gain
(loss)
..................................................................................................................................................................
916
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
2,558
Futures
contracts
..............................................................................................................................................................
254
Foreign
currency
exchange
contracts
................................................................................................................................
7
Credit
default
swap
contracts
............................................................................................................................................
(334)
Foreign
currency-related
transactions
...............................................................................................................................
21
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
2,506
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
3,422
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
4,947
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
17
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
1,525
$
3,021
Net
realized
gain
(loss)
......................................................................................................................
916
462
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
2,506
8,525
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
4,947
12,008
Distributions
To
shareholders
.................................................................................................................................
(1,871)
(3,680)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(1,871)
(3,680)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(10,623)
(9,086)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(7,547)
(758)
Net
Assets
Beginning
of
period
.................................................................................................................................
100,345
101,103
End
of
period
..........................................................................................................................................
$
92,798
$
100,345
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
725
$
6,880
401
$
3,863
Proceeds
from
reinvestment
of
distributions
196
1,871
384
3,680
Payments
for
shares
redeemed
(2,046)
(19,374)
(1,717)
(16,629)
Total
increase
(decrease)
(1,125)
$
(10,623)
(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.
18
Moderate
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(d)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2020
10.05
.16
.46
.62
(.19)
—
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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
19
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(e)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(c)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(c)(d)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(d)
%
Portfolio
Turnover
Rate
(.19)
10.48
6.40
92,798
.39
.14
1.69
23
(.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
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
20
Moderate
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019,
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
differences
between
book
and
tax
accounting.
Book-tax
differences
may
be
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends
and
differences
in
treatment
of
income
from
swaps.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2020,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
1
Administration
fees
3,334
Transfer
agent
fees
345
Trustee
fees
603
$
4,283
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
$
265
$
382
$
(74
)
$
24
$
1,857
$
13
$
—
RIF
U.S.
Small
Cap
Equity
Fund
7,045
1,192
2,351
(326
)
1,027
6,587
4
151
RIF
U.S.
Strategic
Equity
Fund
7,064
640
2,479
(67
)
1,268
6,426
29
59
RIC
Investment
Grade
Bond
Fund
11,910
1,679
3,239
20
307
10,677
293
248
RIC
Unconstrained
Total
Return
Fund
17,972
10,879
3,674
(267
)
84
24,994
475
—
RIF
Strategic
Bond
Fund
21,880
1,680
13,177
372
(104
)
10,651
426
174
RIC
Emerging
Markets
Fund
5,105
445
1,282
60
299
4,627
35
—
RIC
Global
Equity
Fund
7,055
1,960
1,733
(86
)
(686
)
6,510
143
1,381
RIF
International
Developed
Markets
Fund
6,028
560
1,252
57
126
5,519
61
—
RIC
Multi-Strategy
Income
Fund
12,028
719
1,890
(169
)
213
10,901
168
—
U.S.
Cash
Management
Fund
531
45,447
43,892
—
—
2,086
5
—
$
98,642
$
65,466
$
75,351
$
(480
)
$
2,558
$
90,835
$
1,652
$
2,013
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
83,272,021
$
7,770,883
$
(
1,042,195
)
$
6,728,688
$
1,039,875
$
838,598
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
1,870,975
$
—
$
—
$
1,227,506
$
2,452,600
$
—
Russell
Investment
Funds
Balanced
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
Balanced
Strategy
Fund
21
Balanced
Strategy
Fund
Total
Return
1
Year
7
.65%
5
Years
7
.37%§
10
Years
6
.10%§
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
**
Total
Return
1
Year
7
.51%
5
Years
4
.44%§
10
Years
3
.84%§
Russell
1000
®
Index
***
Total
Return
1
Year
20
.96%
5
Years
15
.60%§
10
Years
14
.01%§
MSCI
World
ex
USA
Index
(Net)
****
Total
Return
1
Year
7
.59%
5
Years
7
.64%§
10
Years
5
.19%§
Russell
Investment
Funds
Balanced
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
22
Balanced
Strategy
Fund
The
Balanced
Strategy
Fund
(the
“Fund”)
is
a
fund
of
funds
that
invests
principally
in
other
Russell
Investment
Funds
(“RIF”)
and
Russell
Investment
Company
(“RIC”)
mutual
funds
(the
“Underlying
Funds”).
The
Underlying
Funds
employ
a
multi-
manager
approach
whereby
most
assets
of
the
Underlying
Funds
are
allocated
to
the
strategies
of
different
unaffiliated
money
managers.
Underlying
Fund
assets
not
allocated
to
money
manager
strategies
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
and
Underlying
Funds’
advisor.
RIM,
as
the
Underlying
Funds’
advisor,
may
change
the
allocation
of
the
Underlying
Funds’
assets
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
in
an
Underlying
Fund
at
any
time,
subject
to
approval
by
the
Underlying
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
an
Underlying
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
above
average
long
term
capital
appreciation
and
a
moderate
level
of
current
income.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
gained
7.65%.
This
is
compared
to
the
Fund’s
primary
benchmark,
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
which
gained
7.51%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Allocation
–
50%
to
70%
Equity
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
11.00%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
For
the
fiscal
year
ended
December
31,
2020,
broad
U.S.
large
cap
equity
market
returns
were
positive
on
an
absolute
basis
led
by
risk-on
sentiment
following
periods
of
extreme
volatility.
With
the
rise
in
COVID-19
cases
resulting
in
economic
shutdown
and
recession,
asset
class
returns
were
mixed
in
absolute
terms
led
by
U.S.
large
cap
equity
and
risky
credits,
while
haven
assets
such
as
U.S.
treasuries
lagged.
With
respect
to
fixed
income,
the
fiscal
year
risk-on
rally
was
slightly
less
obvious,
as
risky
credits
outperformed
haven
U.S.
treasuries,
however
credit
risk
was
led
by
high
yield
debt
with
the
aggregate
bond
universe
trailing
closely
behind.
Investment
grade
debt
and
treasuries
found
support
by
an
accommodative
Federal
Reserve
policy,
resulting
in
returns
of
7.51%
and
3.14%,
respectively
(as
measured
by
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
and
ICE
BofA
1-3
Year
US
Treasury
Index).
High
yield
credit
outperformed,
as
the
ICE
BofA
Global
High
Yield
Index
returned
8.03%
over
the
period.
Loans
and
emerging
market
debt
underperformed.
Equities
were
the
highest
returning
asset
class,
led
by
market
leadership
within
U.S.
large
cap
growth
companies.
With
respect
to
regions,
U.S.
equities
outperformed
their
developed
non-U.S.
peers,
with
the
Russell
1000
®
Index
returning
20.96%,
while
the
MSCI
ACWI
ex
USA
Index
(Net)
returned
10.65%
and
emerging
market
shares
returned
16.68%
as
measured
by
the
MSCI
Emerging
Markets
Index
(Net).
Regional
return
spreads
were
even
more
significant
in
certain
areas,
for
example,
with
U.K.
and
European
ex-U.K.
equities
returning
-10.34%
and
11.58%
respectively,
as
measured
by
the
MSCI
United
Kingdom
Index
and
MSCI
Europe
ex
UK
Index.
Within
U.S.
equities,
large
cap
equities
outperformed
their
more
cyclical
small
cap
peers,
and
growth-oriented
equites
strongly
outperformed
their
value
peers
with
return
spreads
widening
beyond
historical
measures.
Last,
within
alternative
assets,
commodities
declined
as
oil
prices
plunged
on
the
heels
of
demand
concerns.
Real
assets
underperformed
equities
and
fixed
income,
led
by
a
decline
in
oil
prices
and
infrastructure.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
the
Underlying
Funds
affect
the
Fund’s
performance?
The
Fund
is
a
fund
of
funds
and
its
performance
is
based
on
RIM’s
strategic
asset
allocations,
the
performance
of
the
Underlying
Funds
in
which
the
Fund
invests,
and
tactical
changes
in
the
Fund’s
asset
allocation
throughout
the
year.
In
order
to
seek
to
achieve
the
Fund’s
objective
during
the
period,
RIM’s
strategic
asset
allocation
included
investments
in
global
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds.
Broadly,
the
Fund’s
asset
allocation
was
a
contributor
to
performance
relative
to
the
Fund’s
fixed
income
benchmark
during
the
period.
Allocations
to
U.S.
equities,
non-U.S.
equities
and
U.S.
small
cap
equities
were
additive.
Overall
performance
of
the
fixed
income
Underlying
Funds
relative
to
the
Fund’s
benchmark
was
negative.
Exposure
to
real
estate
and
commodities
hindered
performance,
as
these
asset
classes
struggled
relative
to
equities
and
fixed
income.
The
fixed
income
portion
of
the
Fund’s
portfolio
provided
overall
negative
results
compared
to
the
Fund’s
fixed
income
benchmark.
An
allocation
to
the
RIF
Strategic
Bond
Fund
was
moderately
positive
from
a
benchmark-relative
perspective
as
a
result
of
its
modestly
long
duration
position.
An
allocation
to
the
RIC
Unconstrained
Total
Return
Fund
detracted,
as
the
substantial
Russell
Investment
Funds
Balanced
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
Balanced
Strategy
Fund
23
drawdown
in
March
more
than
offset
gains
made
in
other
periods
given
the
impact
on
commercial
property.
Over
the
one-year
period,
the
broader
equity
markets
delivered
strong
absolute
performance
and
the
Fund’s
equity
allocation
outperformed
the
Fund’s
fixed
income
benchmark.
However,
most
equity
Underlying
Funds
underperformed
their
respective
equity
benchmarks.
The
RIF
U.S.
Strategic
Equity
Fund
outperformed
its
benchmark
due
to
stock
selection
within
the
technology
sector,
while
underweights
to
the
real
estate
and
consumer
staples
sectors
were
additive.
An
allocation
to
the
RIF
U.S.
Small
Cap
Equity
Fund,
however,
detracted
due
to
its
tilt
toward
companies
with
lower
valuation.
Furthermore,
the
RIC
Emerging
Markets
Fund
underperformed
its
underlying
benchmark
based
on
its
underweight
to
the
consumer
discretionary
sector.
The
alternative
assets
portion
of
the
Fund’s
portfolio
provided
negative
results
compared
to
the
Fund’s
fixed
income
benchmark.
The
RIF
Global
Real
Estate
Securities
Fund
underperformed
the
Fund’s
benchmark
due
to
the
overall
weakness
of
the
asset
class
relative
to
other
market
segments.
The
RIC
Commodity
Strategies
Fund
struggled
against
its
respective
benchmark
as
oil
prices
fell,
while
an
overweight
to
the
softs
sectors
detracted
from
performance
as
well.
The
multi-asset
portion
of
the
Fund’s
portfolio
underperformed
the
Fund’s
fixed
income
benchmark.
The
RIC
Multi-Strategy
Income
Fund’s
global
equity
value
managers
were
laggards
over
the
period,
with
style
headwinds
proving
difficult
over
the
one-
year
period.
In
addition,
the
Underlying
Fund’s
tactical
regional
positioning,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
a
U.S.
equity
underweight,
was
challenged
over
the
period.
Describe
any
changes
to
the
Fund’s
structure
or
allocation
to
the
Underlying
Funds.
RIM
has
the
discretion
to
vary
the
Fund’s
actual
allocation
from
the
target
strategic
asset
allocation
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
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.
During
the
period,
RIM
used
equity
and
fixed-income
derivatives
to
help
maintain
tactical
asset
allocation
preferences,
in
addition
to
implementing
risk-mitigation
strategies.
RIM
used
derivative
contracts,
such
as
equity
index
futures,
as
well
as
treasury
futures
to
help
efficiently
implement
tactical
asset
allocations.
In
addition,
standardized
call
and
put
options
were
used
to
limit
risk,
including
through
the
purchase
and
sale
of
contracts
to
limit
downside
risk,
generate
income,
and
implement
tactical
spread
views
dependent
on
the
current
and
expected
future
states
of
volatility.
The
use
of
derivatives
was
particularly
additive
to
Fund
performance
during
the
extreme
levels
of
volatility
seen
in
Q1
2020
as
COVID-19
resulted
in
economic
shutdown
and
broad
market
equities
dramatically
fell.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
RIF
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
Russell
Investment
Funds
Balanced
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
24
Balanced
Strategy
Fund
*
Assumes
initial
investment
on
January
1,
2011
.
**
The
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
is
an
index,
with
income
reinvested,
generally
representative
of
intermediate-term
government
bonds,
investment
grade
corporate
debt
securities
and
mortgage-backed
securities.
***
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
****
The
MSCI
World
ex
USA
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
22
developed
market
country
indexes.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Balanced
Strategy
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
Balanced
Strategy
Fund
25
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,166.50
$
1,024.43
Expenses
Paid
During
Period*
$
0.76
$
0.71
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.14%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(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
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
26
Balanced
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
96.1%
Alternative
-
4.0%
RIC
Commodity
Strategies
Fund
Class
Y
980,991
5,013
RIF
Global
Real
Estate
Securities
Fund
341,135
4,902
9,915
Domestic
Equities
-
18.3%
RIF
U.S.
Small
Cap
Equity
Fund
1,000,225
15,754
RIF
U.S.
Strategic
Equity
Fund
1,530,557
29,968
45,722
Fixed
Income
-
30.9%
RIC
Unconstrained
Total
Return
Fund
Class
Y
4,407,294
42,222
RIF
Strategic
Bond
Fund
3,213,852
34,967
77,189
International
Equities
-
33.2%
RIC
Emerging
Markets
Fund
Class
Y
709,584
15,171
RIC
Global
Equity
Fund
Class
Y
4,598,872
37,480
RIF
International
Developed
Markets
Fund
2,480,295
30,210
82,861
Multi-Asset
-
9.7%
RIC
Multi-Strategy
Income
Fund
Class
Y
2,361,783
24,303
Total
Investments
in
Affiliated
Funds
(cost
$211,926)
239,990
Short-Term
Investments
-
1.7%
U.S.
Cash
Management
Fund(@)
4,215,525
(∞)
4,215
Total
Short-Term
Investments
(cost
$4,215)
4,215
Total
Investments
-
97.8%
(identified
cost
$216,141)
244,205
Other
Assets
and
Liabilities,
Net
-
2.2%
5,513
Net
Assets
-
100.0%
249,718
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
27
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
408
EUR
14,484
03/21
306
FTSE
100
Index
Futures
92
GBP
5,906
03/21
(72)
MSCI
Emerging
Markets
Index
Futures
33
USD
2,126
03/21
61
Russell
2000
E-Mini
Index
Futures
69
USD
6,813
03/21
208
S&P
500
E-Mini
Index
Futures
87
USD
16,307
03/21
474
United
States
Treasury
Ultra
Bond
Futures
45
USD
9,610
03/21
(133)
Short
Positions
Hang
Seng
Index
Futures
15
HKD
20,414
01/21
(82)
NASDAQ
100
E-Mini
Index
Futures
73
USD
18,813
03/21
(749)
TOPIX
Index
Futures
52
JPY
938,339
03/21
(245)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(232)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
TWD
28,550
USD
1,030
03/17/21
1
Bank
of
New
York
USD
1,356
JPY
141,034
03/17/21
11
Bank
of
New
York
HKD
11,160
USD
1,440
03/17/21
—
JPMorgan
Chase
USD
2,879
HKD
22,319
03/17/21
—
Royal
Bank
of
Canada
USD
1,356
JPY
141,034
03/17/21
11
Royal
Bank
of
Canada
HKD
11,160
USD
1,440
03/17/21
—
State
Street
USD
1,552
KRW
1,695,470
03/17/21
6
State
Street
USD
1,035
TWD
28,550
03/17/21
(7)
UBS
KRW
1,695,470
USD
1,563
03/17/21
5
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
27
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
NA
High
Yield
Index
Bank
of
America
Purchase
USD
7,500
(5.000%)
(2)
12/20/25
(479)
(231)
(710)
CDX
NA
High
Yield
Index
Goldman
Sachs
Sell
USD
15
1.000%
(2)
06/20/25
—
—
—
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
900
(1.000%)
(2)
12/20/25
(22)
—
(22)
CDX
NA
Investment
Grade
Index
Goldman
Sachs
Purchase
USD
15
(1.000%)
(2)
06/20/25
17
(17)
—
Total
Open
Credit
Indices
Contracts
(å)
(484)
(248)
(732)
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
28
Balanced
Strategy
Fund
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Investments
in
Affiliated
Funds
$
239,990
$
—
$
—
$
—
$
239,990
96.1
Short-Term
Investments
—
—
—
4,215
4,215
1.7
Total
Investments
239,990
—
—
4,215
244,205
97.8
Other
Assets
and
Liabilities,
Net
2.2
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
1,049
—
—
—
1,049
0.4
Foreign
Currency
Exchange
Contracts
—
34
—
—
34
—
*
'
Liabilities
Futures
Contracts
(1,281)
—
—
—
(1,281)
(0.5)
Foreign
Currency
Exchange
Contracts
—
(7)
—
—
(7)
(—)
*
Credit
Default
Swap
Contracts
—
(732)
—
—
(732)
(0.3)
Total
Other
Financial
Instruments
**
$
(232)
$
(705)
$
—
$
—
$
(937)
*
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Balanced
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
29
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
$
—
$
—
$
34
$
—
Variation
margin
on
futures
contracts*
1,049
—
—
—
Total
$
1,049
$
—
$
34
$
—
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
1,148
$
—
$
—
$
133
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
7
—
Credit
default
swap
contracts,
at
fair
value
—
732
—
—
Total
$
1,148
$
732
$
7
$
133
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
$
(1,323)
$
—
$
—
$
140
Credit
default
swap
contracts
—
(565)
—
—
Foreign
currency
exchange
contracts
—
—
50
—
Total
$
(1,323)
$
(565)
$
50
$
140
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
582
$
—
$
—
$
(133)
Credit
default
swap
contracts
—
(211)
—
—
Foreign
currency
exchange
contracts
—
—
146
—
Total
$
582
$
(211)
$
146
$
(133)
*
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
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
30
Balanced
Strategy
Fund
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
34
$
—
$
34
Total
Financial
and
Derivative
Assets
34
—
34
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
34
$
—
$
34
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
New
York
$
11
$
—
$
—
$
11
JPMorgan
Chase
16
7
—
9
State
Street
1
—
—
1
UBS
6
—
—
6
Total
$
34
$
7
$
—
$
27
Russell
Investment
Funds
Balanced
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
31
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
$
7
$
—
$
7
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
732
—
732
Total
Financial
and
Derivative
Liabilities
739
—
739
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
739
$
—
$
739
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
$
732
$
—
$
732
$
—
JPMorgan
Chase
7
7
—
—
Total
$
739
$
7
$
732
$
—
^ 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.
32
Balanced
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
216,141
Investments,
at
fair
value(>)
...........................................................................................................................................................
244,205
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
34
Receivables:
Fund
shares
sold
................................................................................................................................................................
293
From
broker(a)(b)
...............................................................................................................................................................
6,558
Total
assets
.................................................................................................................................................
251,090
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
292
Fund
shares
redeemed
.......................................................................................................................................................
1
Accrued
fees
to
affiliates
....................................................................................................................................................
15
Other
accrued
expenses
.....................................................................................................................................................
94
Variation
margin
on
futures
contracts
.................................................................................................................................
231
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
7
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
732
Total
liabilities
.............................................................................................................................................
1,372
Net
Assets
............................................................................................................................................................
$
249,718
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
33
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
31,982
Shares
of
beneficial
interest
...........................................................................................................................................................
243
Additional
paid-in
capital
..............................................................................................................................................................
217,493
Net
Assets
............................................................................................................................................................
$
249,718
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.26
Net
assets
...............................................................................................................................................................................
$
249,718,017
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
24,334,207
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(484)
(>)
Investments
in
affiliated
funds
$
244,205
(a)
Receivable
from
Broker
for
Futures
$
5,390
(b)
Receivable
from
Broker
for
Swaps
$
1,168
(#)
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.
34
Balanced
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
3,925
Expenses
Advisory
fees
....................................................................................................................................................................
465
Administrative
fees
...........................................................................................................................................................
99
Custodian
fees
...................................................................................................................................................................
66
Transfer
agent
fees
............................................................................................................................................................
10
Professional
fees
...............................................................................................................................................................
55
Trustees’
fees
....................................................................................................................................................................
11
Printing
fees
......................................................................................................................................................................
41
Miscellaneous
...................................................................................................................................................................
8
Expenses
before
reductions
..............................................................................................................................................
755
Expense
reductions
...........................................................................................................................................................
(430)
Net
expenses
.................................................................................................................................................................................
325
Net
investment
income
(loss)
........................................................................................................................................................
3,600
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(2,031)
Futures
contracts
..............................................................................................................................................................
(1,183)
Foreign
currency
exchange
contracts
................................................................................................................................
50
Credit
default
swap
contracts
............................................................................................................................................
(565)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
9,105
Net
realized
gain
(loss)
..................................................................................................................................................................
5,376
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
6,266
Futures
contracts
..............................................................................................................................................................
449
Foreign
currency
exchange
contracts
................................................................................................................................
146
Credit
default
swap
contracts
............................................................................................................................................
(211)
Foreign
currency-related
transactions
...............................................................................................................................
33
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
6,683
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
12,059
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
15,659
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
35
U
guy
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
3,600
$
7,536
Net
realized
gain
(loss)
......................................................................................................................
5,376
4,893
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
6,683
26,836
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
15,659
39,265
Distributions
To
shareholders
.................................................................................................................................
(6,351)
(8,971)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(6,351)
(8,971)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(23,263)
(19,950)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(13,955)
10,344
Net
Assets
Beginning
of
period
.................................................................................................................................
263,673
253,329
End
of
period
..........................................................................................................................................
$
249,718
$
263,673
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
966
$
8,717
855
$
7,917
Proceeds
from
reinvestment
of
distributions
686
6,351
962
8,971
Payments
for
shares
redeemed
(4,289)
(38,331)
(3,973)
(36,838)
Total
increase
(decrease)
(2,637)
$
(23,263)
(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.
36
Balanced
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(d)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2020
9.78
.14
.58
.72
(.11)
(.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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
37
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(e)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(c)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(c)(d)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(d)
%
Portfolio
Turnover
Rate
(.24)
10.26
7.65
249,718
.33
.14
1.55
17
(.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
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
38
Balanced
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019,
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
differences
between
book
and
tax
accounting.
Book-tax
differences
may
be
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends
and
differences
in
treatment
of
income
from
swaps.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2020,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
3,951
Administration
fees
8,895
Transfer
agent
fees
921
Trustee
fees
1,486
$
15,253
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
$
472
$
635
$
(156
)
$
36
$
5,013
$
36
$
—
RIF
Global
Real
Estate
Securities
Fund
5,226
504
572
(48
)
(208
)
4,902
69
—
RIF
U.S.
Small
Cap
Equity
Fund
15,830
1,880
3,596
(630
)
2,270
15,754
8
341
RIF
U.S.
Strategic
Equity
Fund
31,784
719
7,796
(182
)
5,443
29,968
127
268
RIC
Unconstrained
Total
Return
Fund
33,932
15,353
6,404
(488
)
(171
)
42,222
807
—
RIF
Strategic
Bond
Fund
51,935
5,423
23,212
853
(32
)
34,967
1,242
569
RIC
Emerging
Markets
Fund
15,996
702
2,679
97
1,055
15,171
114
—
RIC
Global
Equity
Fund
39,685
8,975
6,588
(823
)
(3,769
)
37,480
818
7,927
RIF
International
Developed
Markets
Fund
31,650
1,586
3,981
(167
)
1,122
30,210
330
—
RIC
Multi-Strategy
Income
Fund
26,321
1,388
3,439
(487
)
520
24,303
360
—
U.S.
Cash
Management
Fund
2,722
72,875
71,382
—
—
4,215
14
—
$
260,377
$
109,877
$
130,284
$
(2,031
)
$
6,266
$
244,205
$
3,925
$
9,105
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
218,010,403
$
27,633,549
$
(
2,492,442
)
$
25,141,107
$
2,537,631
$
5,835,163
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
2,779,294
$
3,571,549
$
—
$
4,016,825
$
4,954,324
$
—
Russell
Investment
Funds
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
Growth
Strategy
Fund
39
Growth
Strategy
Fund
Total
Return
1
Year
9
.75%
5
Years
8
.62%§
10
Years
6
.76%§
Russell
1000
®
Index
**
Total
Return
1
Year
20
.96%
5
Years
15
.60%§
10
Years
14
.01%§
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
***
Total
Return
1
Year
7
.51%
5
Years
4
.44%§
10
Years
3
.84%§
MSCI
World
ex
USA
Index
(Net)
****
Total
Return
1
Year
7
.59%
5
Years
7
.64%§
10
Years
5
.19%§
Russell
Investment
Funds
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
40
Growth
Strategy
Fund
The
Growth
Strategy
Fund
(the
“Fund”)
is
a
fund
of
funds
that
invests
principally
in
other
Russell
Investment
Funds
(“RIF”)
and
Russell
Investment
Company
(“RIC”)
mutual
funds
(the
“Underlying
Funds”).
The
Underlying
Funds
employ
a
multi-
manager
approach
whereby
most
assets
of
the
Underlying
Funds
are
allocated
to
the
strategies
of
different
unaffiliated
money
managers.
Underlying
Fund
assets
not
allocated
to
money
manager
strategies
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
and
Underlying
Funds’
advisor.
RIM,
as
the
Underlying
Funds’
advisor,
may
change
the
allocation
of
the
Underlying
Funds’
assets
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
in
an
Underlying
Fund
at
any
time,
subject
to
approval
by
the
Underlying
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
an
Underlying
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
high
long
term
capital
appreciation,
and
as
a
secondary
objective,
current
income.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
gained
9.75%.
This
is
compared
to
the
Fund’s
primary
benchmark,
the
Russell
1000
®
Index,
which
gained
20.96%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Allocation
–
70%
to
85%
Equity
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
11.28%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
For
the
fiscal
year
ended
December
31,
2020,
broad
U.S.
large
cap
equity
market
returns
were
positive
on
an
absolute
basis
led
by
risk-on
sentiment
following
periods
of
extreme
volatility.
With
the
rise
in
COVID-19
cases
resulting
in
economic
shutdown
and
recession,
asset
class
returns
were
mixed
in
absolute
terms
led
by
U.S.
large
cap
equity
and
risky
credits,
while
haven
assets
such
as
U.S.
treasuries
lagged.
With
respect
to
fixed
income,
the
fiscal
year
risk-on
rally
was
slightly
less
obvious,
as
risky
credits
outperformed
haven
U.S.
treasuries,
however
credit
risk
was
led
by
high
yield
debt
with
the
aggregate
bond
universe
trailing
closely
behind.
Investment
grade
debt
and
treasuries
found
support
by
an
accommodative
Federal
Reserve
policy,
resulting
in
returns
of
7.51%
and
3.14%,
respectively
(as
measured
by
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
and
ICE
BofA
1-3
Year
US
Treasury
Index).
High
yield
credit
outperformed,
as
the
ICE
BofA
Global
High
Yield
Index
returned
8.03%
over
the
period.
Loans
and
emerging
market
debt
underperformed.
Equities
were
the
highest
returning
asset
class,
led
by
market
leadership
within
U.S.
large
cap
growth
companies.
With
respect
to
regions,
U.S.
equities
outperformed
their
developed
non-U.S.
peers,
with
the
Russell
1000
®
Index
returning
20.96%,
while
the
MSCI
ACWI
ex
USA
Index
(Net)
returned
10.65%
and
emerging
market
shares
returned
16.68%
as
measured
by
the
MSCI
Emerging
Markets
Index
(Net).
Regional
return
spreads
were
even
more
significant
in
certain
areas,
for
example,
with
U.K.
and
European
ex-U.K.
equities
returning
-10.34%
and
11.58%
respectively,
as
measured
by
the
MSCI
United
Kingdom
Index
and
MSCI
Europe
ex
UK
Index.
Within
U.S.
equities,
large
cap
equities
outperformed
their
more
cyclical
small
cap
peers,
and
growth-oriented
equites
strongly
outperformed
their
value
peers
with
return
spreads
widening
beyond
historical
measures.
Last,
within
alternative
assets,
commodities
declined
as
oil
prices
plunged
on
the
heels
of
demand
concerns.
Real
assets
underperformed
equities
and
fixed
income,
led
by
a
decline
in
oil
prices
and
infrastructure.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
the
Underlying
Funds
affect
the
Fund’s
performance?
The
Fund
is
a
fund
of
funds
and
its
performance
is
based
on
RIM’s
strategic
asset
allocations,
the
performance
of
the
Underlying
Funds
in
which
the
Fund
invests,
and
tactical
changes
in
the
Fund’s
asset
allocation
throughout
the
year.
In
order
to
seek
to
achieve
the
Fund’s
objective
during
the
period,
RIM’s
strategic
asset
allocation
included
investments
in
global
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds.
Broadly,
the
Fund’s
asset
allocation
was
a
detractor
to
performance
relative
to
the
Fund’s
equity
benchmark
during
the
period.
Allocations
to
non-U.S.
equities
and
U.S.
small
cap
equities
detracted
versus
the
Fund’s
equity
benchmark.
The
Fund’s
allocation
to
fixed
income
Underlying
Funds
was
negative
relative
to
the
Fund’s
benchmark
as
well.
Exposure
to
real
estate
and
commodities
hindered
performance,
as
these
asset
classes
struggled
relative
to
equities
and
fixed
income.
The
fixed
income
portion
of
the
Fund’s
portfolio
provided
overall
negative
results
compared
to
the
Fund’s
equity
benchmark.
Allocations
to
the
RIF
Strategic
Bond
Fund
and
RIC
Unconstrained
Total
Return
Fund
detracted
as
the
market
continued
to
favor
risky
assets,
such
as
equities,
while
fixed
income
assets
trailed
behind.
Russell
Investment
Funds
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
Growth
Strategy
Fund
41
Over
the
one-year
period,
the
broader
equity
markets
delivered
strong
absolute
performance.
However,
most
equity
Underlying
Funds
underperformed
their
respective
benchmarks
and
the
Fund’s
equity
allocation
underperformed
the
Fund’s
U.S.
large
cap
equity
benchmark.
The
RIF
U.S.
Strategic
Equity
Fund
outperformed
its
underlying
benchmark
due
to
stock
selection
within
the
technology
sector,
while
underweights
to
the
real
estate
and
consumer
staples
sectors
were
additive.
An
allocation
to
the
RIF
U.S.
Small
Cap
Equity
Fund,
however,
detracted
due
to
its
tilt
toward
companies
with
lower
valuation.
Furthermore,
the
RIC
Emerging
Markets
Fund
underperformed
its
underlying
benchmark
based
on
its
underweight
to
the
consumer
discretionary
sector.
The
alternative
assets
portion
of
the
Fund’s
portfolio
provided
negative
results
compared
to
the
Fund’s
equity
benchmark.
The
RIF
Global
Real
Estate
Securities
Fund
underperformed
the
Fund’s
benchmark
due
to
the
overall
weakness
of
the
asset
class
relative
to
other
market
segments.
The
RIC
Commodity
Strategies
Fund
struggled
versus
its
benchmark
as
well
as
the
Fund’s
equity
benchmark
as
oil
prices
fell.
The
multi-asset
portion
of
the
Fund’s
portfolio
underperformed
the
Fund’s
equity
benchmark.
The
RIC
Multi-Asset
Growth
Strategy
Fund
detracted
as
global
equity
value
managers
were
laggards
over
the
period,
with
style
headwinds
proving
difficult.
In
addition,
the
Underlying
Fund’s
tactical
regional
positioning,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
a
U.S.
equity
underweight,
was
challenged
over
the
period.
Describe
any
changes
to
the
Fund’s
structure
or
allocation
to
the
Underlying
Funds.
RIM
has
the
discretion
to
vary
the
Fund’s
actual
allocation
from
the
target
strategic
asset
allocation
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
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.
During
the
period,
RIM
used
equity
and
fixed-income
derivatives
to
help
maintain
tactical
asset
allocation
preferences,
in
addition
to
implementing
risk-mitigation
strategies.
RIM
used
derivative
contracts,
such
as
equity
index
futures,
as
well
as
treasury
futures
to
help
efficiently
implement
tactical
asset
allocations.
In
addition,
standardized
call
and
put
options
were
used
to
limit
risk,
including
through
the
purchase
and
sale
of
contracts
to
limit
downside
risk,
generate
income,
and
implement
tactical
spread
views
dependent
on
the
current
and
expected
future
states
of
volatility.
The
use
of
derivatives
was
particularly
additive
to
Fund
performance
during
the
extreme
levels
of
volatility
seen
in
Q1
2020
as
COVID-19
resulted
in
economic
shutdown
and
broad
market
equities
dramatically
fell.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
RIF
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
*
Assumes
initial
investment
on
January
1,
2011.
**
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
***
The
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
is
an
index,
with
income
reinvested,
generally
representative
of
intermediate-term
government
bonds,
investment
grade
corporate
debt
securities
and
mortgage-backed
securities.
****
The
MSCI
World
ex
USA
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
22
developed
market
country
indexes.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Growth
Strategy
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
42
Growth
Strategy
Fund
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,207.20
$
1,024.38
Expenses
Paid
During
Period*
$
0.83
$
0.76
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.15%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(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
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
43
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
94.9%
Alternative
-
3.9%
RIC
Commodity
Strategies
Fund
Class
Y
758,630
3,877
RIF
Global
Real
Estate
Securities
Fund
268,551
3,859
7,736
Domestic
Equities
-
30.7%
RIF
U.S.
Small
Cap
Equity
Fund
1,148,083
18,082
RIF
U.S.
Strategic
Equity
Fund
2,193,558
42,949
61,031
Fixed
Income
-
14.3%
RIC
Unconstrained
Total
Return
Fund
Class
Y
2,975,348
28,504
International
Equities
-
36.5%
RIC
Emerging
Markets
Fund
Class
Y
646,343
13,819
RIC
Global
Equity
Fund
Class
Y
3,591,708
29,272
RIF
International
Developed
Markets
Fund
2,420,250
29,479
72,570
Multi-Asset
-
9.5%
RIC
Multi-Asset
Growth
Strategy
Fund
Class
Y
1,787,549
18,859
Total
Investments
in
Affiliated
Funds
(cost
$160,167)
188,700
Short-Term
Investments
-
2.4%
U.S.
Cash
Management
Fund(@)
4,839,481
(∞)
4,839
Total
Short-Term
Investments
(cost
$4,839)
4,839
Total
Investments
-
97.3%
(identified
cost
$165,006)
193,539
Other
Assets
and
Liabilities,
Net
-
2.7%
5,267
Net
Assets
-
100.0%
198,806
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
44
Growth
Strategy
Fund
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
421
EUR
14,946
03/21
315
FTSE
100
Index
Futures
91
GBP
5,842
03/21
(71)
MSCI
Emerging
Markets
Index
Futures
17
USD
1,095
03/21
32
Russell
2000
E-Mini
Index
Futures
17
USD
1,679
03/21
51
S&P
500
E-Mini
Index
Futures
96
USD
17,993
03/21
523
United
States
Treasury
Ultra
Bond
Futures
34
USD
7,261
03/21
(101)
Short
Positions
Hang
Seng
Index
Futures
12
HKD
16,331
01/21
(66)
NASDAQ
100
E-Mini
Index
Futures
47
USD
12,112
03/21
(482)
TOPIX
Index
Futures
40
JPY
721,800
03/21
(188)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
13
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
TWD
28,550
USD
1,030
03/17/21
1
Bank
of
New
York
HKD
12,189
USD
1,572
03/17/21
—
JPMorgan
Chase
USD
3,145
HKD
24,378
03/17/21
—
Royal
Bank
of
Canada
HKD
12,189
USD
1,572
03/17/21
—
State
Street
USD
2,152
KRW
2,350,250
03/17/21
8
State
Street
USD
1,035
TWD
28,550
03/17/21
(7)
UBS
KRW
2,350,250
USD
2,167
03/17/21
7
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
9
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
NA
High
Yield
Index
Bank
of
America
Purchase
USD
8,800
(5.000%)
(2)
12/20/25
(461)
(372)
(833)
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
1,600
(1.000%)
(2)
12/20/25
(39)
(1)
(40)
Total
Open
Credit
Indices
Contracts
(å)
(500)
(373)
(873)
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
45
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
$
188,700
$
—
$
—
$
—
$
188,700
9
4
.
9
Short-Term
Investments
—
—
—
4,839
4,839
2.4
Total
Investments
188,700
—
—
4,839
193,539
97.
3
Other
Assets
and
Liabilities,
Net
2.
7
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
92
1
—
—
—
92
1
0.
5
Foreign
Currency
Exchange
Contracts
—
16
—
—
16
—*
'
Liabilities
Futures
Contracts
(908)
—
—
—
(908)
(0.
5
)
Foreign
Currency
Exchange
Contracts
—
(7)
—
—
(7)
(—)*
Credit
Default
Swap
Contracts
—
(873)
—
—
(873)
(0.4)
Total
Other
Financial
Instruments
*
$
1
3
$
(864)
$
—
$
—
$
(85
1
)
*
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
46
Growth
Strategy
Fund
Russell
Investment
Funds
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
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
$
—
$
—
$
16
$
—
Variation
margin
on
futures
contracts*
92
1
—
—
—
Total
$
92
1
$
—
$
16
$
—
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
8
07
$
—
$
—
$
101
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
—
7
—
Credit
default
swap
contracts,
at
fair
value
—
873
—
—
Total
$
807
$
873
$
7
$
101
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
$
(859)
$
—
$
—
$
230
Credit
default
swap
contracts
—
557
—
—
Foreign
currency
exchange
contracts
—
—
(398)
—
Total
$
(859
)
$
557
$
(398)
$
230
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
772
$
—
$
—
$
(
96
)
Credit
default
swap
contracts
—
(36
)
—
—
Foreign
currency
exchange
contracts
—
—
101
—
Total
$
772
$
(36
)
$
101
$
(96
)
*
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
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
47
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
16
$
—
$
16
Total
Financial
and
Derivative
Assets
16
—
16
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
16
$
—
$
16
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
New
York
$
8
$
—
$
—
$
8
JPMorgan
Chase
7
7
—
—
UBS
1
—
—
1
Total
$
16
$
7
$
—
$
9
Russell
Investment
Funds
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
48
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
$
7
$
—
$
7
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
873
—
873
Total
Financial
and
Derivative
Liabilities
880
—
880
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
880
$
—
$
880
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
$
873
$
—
$
873
$
—
JPMorgan
Chase
7
7
—
—
Total
$
880
$
7
$
873
$
—
^ 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
49
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
165,006
Investments,
at
fair
value(>)
...........................................................................................................................................................
193,539
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
16
Receivables:
Dividends
and
interest
.......................................................................................................................................................
1
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Fund
shares
sold
................................................................................................................................................................
35
From
broker(a)(b)
...............................................................................................................................................................
6,209
Variation
margin
on
futures
contracts
.................................................................................................................................
15
Total
assets
.................................................................................................................................................
199,8
16
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
25
Fund
shares
redeemed
.......................................................................................................................................................
10
Accrued
fees
to
affiliates
....................................................................................................................................................
13
Other
accrued
expenses
.....................................................................................................................................................
82
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
7
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
873
Total
liabilities
.............................................................................................................................................
1,010
Net
Assets
............................................................................................................................................................
$
198,806
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
30,551
Shares
of
beneficial
interest
...........................................................................................................................................................
193
Additional
paid-in
capital
..............................................................................................................................................................
168,06
2
Net
Assets
............................................................................................................................................................
$
198,806
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.32
Net
assets
...............................................................................................................................................................................
$
198,806,178
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
19,268,336
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(500)
(>)
Investments
in
affiliated
funds
$
193,539
(a)
Receivable
from
Broker
for
Futures
$
4,819
(b)
Receivable
from
Broker
for
Swaps
$
1,390
(#)
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
51
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
2,041
Expenses
Advisory
fees
....................................................................................................................................................................
364
Administrative
fees
...........................................................................................................................................................
77
Custodian
fees
...................................................................................................................................................................
58
Transfer
agent
fees
............................................................................................................................................................
8
Professional
fees
...............................................................................................................................................................
51
Trustees’
fees
....................................................................................................................................................................
9
Printing
fees
......................................................................................................................................................................
31
Miscellaneous
...................................................................................................................................................................
8
Expenses
before
reductions
..............................................................................................................................................
606
Expense
reductions
...........................................................................................................................................................
(333)
Net
expenses
.................................................................................................................................................................................
273
Net
investment
income
(loss)
........................................................................................................................................................
1,768
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(2,20
4
)
Futures
contracts
..............................................................................................................................................................
(629)
Foreign
currency
exchange
contracts
................................................................................................................................
(398)
Credit
default
swap
contracts
............................................................................................................................................
55
7
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
6,976
Net
realized
gain
(loss)
..................................................................................................................................................................
4,
302
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
9,60
4
Futures
contracts
..............................................................................................................................................................
67
6
Foreign
currency
exchange
contracts
................................................................................................................................
101
Credit
default
swap
contracts
............................................................................................................................................
(36
)
Foreign
currency-related
transactions
...............................................................................................................................
(
1
)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
10,34
4
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
14,64
6
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
16,414
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
52
Growth
Strategy
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
1,7
68
$
4,970
Net
realized
gain
(loss)
......................................................................................................................
4,302
4,892
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
10,34
4
23,360
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
16,414
33,222
Distributions
To
shareholders
.................................................................................................................................
(6,46
2
)
(12,311)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(6,46
2
)
(12,311)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(16,55
5
)
(5,544)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(6,603)
15,367
Net
Assets
Beginning
of
period
.................................................................................................................................
205,409
190,042
End
of
period
..........................................................................................................................................
$
198,806
$
205,409
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
529
$
4,519
453
$
4,145
Proceeds
from
reinvestment
of
distributions
697
6,462
1,362
12,311
Payments
for
shares
redeemed
(3,080)
(27,536
)
(2,393)
(22,000)
Total
increase
(decrease)
(1,854)
$
(16,55
5
)
(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.
54
Growth
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(d)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2020
9.72
.09
.82
.91
(.15)
(.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)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
55
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(e)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(c)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(c)(d)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(d)
%
Portfolio
Turnover
Rate
(.31)
10.32
9.75
198,806
.33
.15
.97
16
(.58)
9.72
18.06
205,409
.33
.15
2.48
35
(.90)
8.76
(8.05)
190,042
.31
.15
3.69
18
(.54)
10.46
15.65
220,835
.32
.14
3.37
29
(.27)
9.53
9.73
205,944
.30
.12
2.14
18
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
56
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019,
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
differences
between
book
and
tax
accounting.
Book-tax
differences
may
be
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends
and
differences
in
treatment
of
income
from
swaps.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2020,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Advisory
fees
$
4,356
Administration
fees
7,097
Transfer
agent
fees
735
Trustee
fees
1,114
$
13,302
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
$
367
$
528
$
(285
)
$
200
$
3,877
$
27
$
—
RIF
Global
Real
Estate
Securities
Fund
4,060
458
471
2
(190
)
3,859
54
—
RIF
U.S.
Small
Cap
Equity
Fund
18,437
1,929
4,174
(739
)
2,629
18,082
9
398
RIF
U.S.
Strategic
Equity
Fund
45,335
1,003
10,826
(321
)
7,758
42,949
181
386
RIC
Unconstrained
Total
Return
Fund
20,157
13,590
5,056
(358
)
171
28,504
538
—
RIF
Strategic
Bond
Fund
12,025
138
12,174
604
(593
)
—
84
—
RIC
Emerging
Markets
Fund
14,532
406
2,158
45
994
13,819
103
—
RIC
Global
Equity
Fund
30,836
7,084
5,026
(531
)
(3,091
)
29,272
639
6,192
RIF
International
Developed
Markets
Fund
30,738
1,174
3,423
(147
)
1,137
29,479
321
—
RIC
Multi-Asset
Growth
Strategy
Fund
20,320
1,068
2,644
(474
)
589
18,859
77
—
U.S.
Cash
Management
Fund
1,621
52,157
48,939
—
—
4,839
8
—
$
202,184
$
79,374
$
95,419
$
(2,204
)
$
9,604
$
193,539
$
2,041
$
6,976
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
166,828,454
$
28,360,516
$
(
2,768,541
)
$
25,591,975
$
819,675
$
5,673,116
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
3,042,608
$
3,419,149
$
—
$
1,404,242
$
10,906,819
$
—
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis
—
December
31,
2020
(Unaudited)
Equity
Growth
Strategy
Fund
57
Equity
Growth
Strategy
Fund
Total
Return
1
Year
8
.26%
5
Years
8
.93%§
10
Years
7
.09%§
Russell
1000
®
Index
**
Total
Return
1
Year
20
.96%
5
Years
15
.60%§
10
Years
14
.01%§
MSCI
World
ex
USA
Index
(Net)
***
Total
Return
1
Year
7
.59%
5
Years
7
.64%§
10
Years
5
.19%§
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
58
Equity
Growth
Strategy
Fund
The
Equity
Growth
Strategy
Fund
(the
“Fund”)
is
a
fund
of
funds
that
invests
principally
in
other
Russell
Investment
Funds
(“RIF”)
and
Russell
Investment
Company
(“RIC”)
mutual
funds
(the
“Underlying
Funds”).
The
Underlying
Funds
employ
a
multi-
manager
approach
whereby
most
assets
of
the
Underlying
Funds
are
allocated
to
the
strategies
of
different
unaffiliated
money
managers.
Underlying
Fund
assets
not
allocated
to
money
manager
strategies
are
managed
by
Russell
Investment
Management,
LLC
(“RIM”),
the
Fund’s
and
Underlying
Funds’
advisor.
RIM,
as
the
Underlying
Funds’
advisor,
may
change
the
allocation
of
the
Underlying
Funds’
assets
at
any
time.
An
exemptive
order
from
the
Securities
and
Exchange
Commission
(“SEC”)
permits
RIM
to
engage
or
terminate
a
money
manager
in
an
Underlying
Fund
at
any
time,
subject
to
approval
by
the
Underlying
Fund’s
Board,
without
a
shareholder
vote.
Pursuant
to
the
terms
of
the
exemptive
order,
an
Underlying
Fund
is
required
to
notify
its
shareholders
within
90
days
of
when
a
money
manager
begins
providing
services.
What
is
the
Fund’s
investment
objective?
The
Fund
seeks
to
provide
high
long
term
capital
appreciation.
How
did
the
Fund
perform
relative
to
its
benchmark
for
the
fiscal
year
ended
December
31,
2020?
For
the
fiscal
year
ended
December
31,
2020,
the
Fund
gained
8.26%.
This
is
compared
to
the
Fund’s
primary
benchmark,
the
Russell
1000
®
Index,
which
gained
20.96%
during
the
same
period.
The
Fund’s
performance
includes
operating
expenses,
whereas
index
returns
are
unmanaged
and
do
not
include
expenses
of
any
kind.
For
the
fiscal
year
ended
December
31,
2020,
the
Morningstar
®
Insurance
Allocation
–
70%
to
85%
Equity
Category,
a
group
of
funds
that
Morningstar
considers
to
have
investment
strategies
similar
to
those
of
the
Fund,
gained
11.28%.
This
result
serves
as
a
peer
comparison
and
is
expressed
net
of
operating
expenses.
How
did
market
conditions
affect
the
Fund’s
performance?
For
the
fiscal
year
ended
December
31,
2020,
broad
U.S.
large
cap
equity
market
returns
were
positive
on
an
absolute
basis
led
by
risk-on
sentiment
following
periods
of
extreme
volatility.
With
the
rise
in
COVID-19
cases
resulting
in
economic
shutdown
and
recession,
asset
class
returns
were
mixed
in
absolute
terms
led
by
U.S.
large
cap
equity
and
risky
credits,
while
haven
assets
such
as
U.S.
treasuries
lagged.
With
respect
to
fixed
income,
the
fiscal
year
risk-on
rally
was
slightly
less
obvious,
as
risky
credits
outperformed
haven
U.S.
treasuries,
however
credit
risk
was
led
by
high
yield
debt
with
the
aggregate
bond
universe
trailing
closely
behind.
Investment
grade
debt
and
treasuries
found
support
by
an
accommodative
Federal
Reserve
policy,
resulting
in
returns
of
7.51%
and
3.14%,
respectively
(as
measured
by
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
and
ICE
BofA
1-3
Year
US
Treasury
Index).
High
yield
credit
outperformed,
as
the
ICE
BofA
Global
High
Yield
Index
returned
8.03%
over
the
period.
Loans
and
emerging
market
debt
underperformed.
Equities
were
the
highest
returning
asset
class,
led
by
market
leadership
within
U.S.
large
cap
growth
companies.
With
respect
to
regions,
U.S.
equities
outperformed
their
developed
non-U.S.
peers,
with
the
Russell
1000
®
Index
returning
20.96%,
while
the
MSCI
ACWI
ex
USA
Index
(Net)
returned
10.65%
and
emerging
market
shares
returned
16.68%
as
measured
by
the
MSCI
Emerging
Markets
Index
(Net).
Regional
return
spreads
were
even
more
significant
in
certain
areas,
for
example,
with
U.K.
and
European
ex-U.K.
equities
returning
-10.34%
and
11.58%
respectively,
as
measured
by
the
MSCI
United
Kingdom
Index
and
MSCI
Europe
ex
UK
Index.
Within
U.S.
equities,
large
cap
equities
outperformed
their
more
cyclical
small
cap
peers,
and
growth-oriented
equites
strongly
outperformed
their
value
peers
with
return
spreads
widening
beyond
historical
measures.
Last,
within
alternative
assets,
commodities
declined
as
oil
prices
plunged
on
the
heels
of
demand
concerns.
Real
assets
underperformed
equities
and
fixed
income,
led
by
a
decline
in
oil
prices
and
infrastructure.
How
did
the
investment
strategies
and
techniques
employed
by
the
Fund
and
the
Underlying
Funds
affect
the
Fund’s
performance?
The
Fund
is
a
fund
of
funds
and
its
performance
is
based
on
RIM’s
strategic
asset
allocations,
the
performance
of
the
Underlying
Funds
in
which
the
Fund
invests,
and
tactical
changes
in
the
Fund’s
asset
allocation
throughout
the
year.
In
order
to
seek
to
achieve
the
Fund’s
objective
during
the
period,
RIM’s
strategic
asset
allocation
included
investments
in
global
equity,
fixed
income,
multi-asset
and
alternative
Underlying
Funds.
Broadly,
the
Fund’s
asset
allocation
was
a
detractor
to
performance
relative
to
the
Fund’s
equity
benchmark
during
the
period.
Allocations
to
non-U.S.
equities
and
U.S.
small
cap
equities
detracted
versus
the
Fund’s
equity
benchmark.
The
Fund’s
allocation
to
fixed
income
Underlying
Funds
was
negative
relative
to
the
Fund’s
benchmark
as
well.
Exposure
to
real
estate
and
commodities
hindered
performance,
as
these
asset
classes
struggled
relative
to
equities
and
fixed
income.
The
fixed
income
portion
of
the
Fund’s
portfolio
provided
overall
negative
results
compared
to
the
Fund’s
equity
benchmark.
An
allocation
to
the
RIC
Unconstrained
Total
Return
Fund
detracted
as
the
market
continued
to
favor
risky
assets,
such
as
equities,
while
fixed
income
assets
trailed
behind.
Over
the
one-year
period,
the
broader
equity
markets
delivered
strong
absolute
performance.
However,
most
equity
Underlying
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Portfolio
Management
Discussion
and
Analysis,
continued
—
December
31,
2020
(Unaudited)
Equity
Growth
Strategy
Fund
59
Funds
underperformed
their
respective
benchmarks
and
the
Fund’s
equity
allocation
underperformed
the
Fund’s
U.S.
large
cap
equity
benchmark.
The
RIF
U.S.
Strategic
Equity
Fund
outperformed
its
underlying
benchmark
due
to
stock
selection
within
the
technology
sector,
while
underweights
to
the
real
estate
and
consumer
staples
sectors
were
additive.
An
allocation
to
the
RIF
U.S.
Small
Cap
Equity
Fund,
however,
detracted
due
to
its
tilt
toward
companies
with
lower
valuation.
Furthermore,
the
RIC
Emerging
Markets
Fund
underperformed
its
underlying
benchmark
based
on
its
underweight
to
the
consumer
discretionary
sector.
The
alternative
assets
portion
of
the
Fund’s
portfolio
provided
negative
results
compared
to
the
Fund’s
equity
benchmark.
The
RIF
Global
Real
Estate
Securities
Fund
underperformed
the
Fund’s
benchmark
due
to
the
overall
weakness
of
the
asset
class
relative
to
other
market
segments.
The
RIC
Commodity
Strategies
Fund
struggled
versus
its
benchmark
as
well
as
the
Fund’s
equity
benchmark
as
oil
prices
fell.
The
multi-asset
portion
of
the
Fund’s
portfolio
underperformed
the
Fund’s
equity
benchmark.
The
RIC
Multi-Asset
Growth
Strategy
Fund
detracted
as
global
equity
value
managers
were
laggards
over
the
period,
with
style
headwinds
proving
difficult.
In
addition,
the
Underlying
Fund’s
tactical
regional
positioning,
mainly
driven
by
an
overweight
to
non-U.S.
equity
and
a
U.S.
equity
underweight,
was
challenged
over
the
period.
Describe
any
changes
to
the
Fund’s
structure
or
allocation
to
the
Underlying
Funds.
RIM
has
the
discretion
to
vary
the
Fund’s
actual
allocation
from
the
target
strategic
asset
allocation
by
up
to
+/-
5%
at
the
equity,
fixed
income,
multi-asset
or
alternative
category
level
based
on
RIM’s
capital
markets
research.
In
addition
to
investing
in
the
Underlying
Funds,
RIM
may
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.
During
the
period,
RIM
used
equity
and
fixed-income
derivatives
to
help
maintain
tactical
asset
allocation
preferences,
in
addition
to
implementing
risk-mitigation
strategies.
RIM
used
derivative
contracts,
such
as
equity
index
futures,
as
well
as
treasury
futures
to
help
efficiently
implement
tactical
asset
allocations.
In
addition,
standardized
call
and
put
options
were
used
to
limit
risk,
including
through
the
purchase
and
sale
of
contracts
to
limit
downside
risk,
generate
income,
and
implement
tactical
spread
views
dependent
on
the
current
and
expected
future
states
of
volatility.
The
use
of
derivatives
was
particularly
additive
to
Fund
performance
during
the
extreme
levels
of
volatility
seen
in
Q1
2020
as
COVID-19
resulted
in
economic
shutdown
and
broad
market
equities
dramatically
fell.
In
August
2020,
RIM
removed
the
allocation
to
the
RIC
Commodity
Strategies
Fund.
The
views
expressed
in
this
report
reflect
those
of
the
portfolio
managers
only
through
the
end
of
the
period
covered
by
the
report.
These
views
do
not
necessarily
represent
the
views
of
RIM,
or
any
other
person
in
RIM
or
any
other
affiliated
organization.
These
views
are
subject
to
change
at
any
time
based
upon
market
conditions
or
other
events,
and
RIM
disclaims
any
responsibility
to
update
the
views
contained
herein.
These
views
should
not
be
relied
on
as
investment
advice
and,
because
investment
decisions
for
a
RIF
Fund
are
based
on
numerous
factors,
should
not
be
relied
on
as
an
indication
of
investment
decisions
of
any
RIF
Fund.
*
Assumes
initial
investment
on
January
1,
2011.
**
The
Russell
1000
®
Index
includes
the
1,000
largest
companies
in
the
Russell
3000
®
Index.
The
Russell
1000
®
Index
represents
the
universe
of
stocks
from
which
most
active
money
managers
typically
select.
The
Russell
1000
®
Index
return
reflects
adjustments
from
income
dividends
and
capital
gain
distributions
reinvested
as
of
the
ex-dividend
dates.
***
The
MSCI
World
ex
USA
Index
(Net)
is
a
free
float‐adjusted
market
capitalization
weighted
index
that
is
designed
to
measure
the
equity
market
performance
of
developed
markets.
The
index
consists
of
22
developed
market
country
indexes.
§
Annualized.
The
performance
shown
in
this
section
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Performance
is
historical
and
assumes
reinvestment
of
all
dividends
and
capital
gains. Investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
when
purchased. Past
performance
is
not
indicative
of
future
results. Additionally,
the
returns
presented
herein
may
differ
from
the
performance
reported
in
the
Financial
Highlights
as
the
returns
herein
are
calculated
in
a
manner
consistent
with
standardized
performance
in
accordance
with
Securities
and
Exchange
Commission
rules,
while
the
performance
in
the
Financial
Highlights
has
been
calculated
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
(“U.S.
GAAP”).
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Shareholder
Expense
Example
—
December
31,
2020
(Unaudited)
60
Equity
Growth
Strategy
Fund
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
July
1,
2020
to
December
31,
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
July
1,
2020
$
1,000.00
$
1,000.00
Ending
Account
Value
December
31,
2020
$
1,233.00
$
1,02
4
.
38
Expenses
Paid
During
Period*
$
0.84
$
0.76
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.15%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(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
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
61
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
95.4%
Alternative
-
2.9%
RIF
Global
Real
Estate
Securities
Fund
90,419
1,299
Domestic
Equities
-
34.4%
RIF
U.S.
Small
Cap
Equity
Fund
380,005
5,985
RIF
U.S.
Strategic
Equity
Fund
490,293
9,600
15,585
Fixed
Income
-
7.2%
RIC
Unconstrained
Total
Return
Fund
Class
Y
340,790
3,265
International
Equities
-
47.2%
RIC
Emerging
Markets
Fund
Class
Y
205,757
4,399
RIC
Global
Equity
Fund
Class
Y
1,123,146
9,154
RIF
International
Developed
Markets
Fund
642,641
7,827
21,380
Multi-Asset
-
3.7%
RIC
Multi-Asset
Growth
Strategy
Fund
Class
Y
161,559
1,704
Total
Investments
in
Affiliated
Funds
(cost
$35,571)
43,233
Short-Term
Investments
-
2.8%
U.S.
Cash
Management
Fund(@)
1,288,817
(∞)
1,289
Total
Short-Term
Investments
(cost
$1,289)
1,289
Total
Investments
-
98.2%
(identified
cost
$36,860)
44,522
Other
Assets
and
Liabilities,
Net
-
1.8%
800
Net
Assets
-
100.0%
45,322
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
62
Equity
Growth
Strategy
Fund
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
23
EUR
817
03/21
15
FTSE
100
Index
Futures
22
GBP
1,412
03/21
(17)
MSCI
Emerging
Markets
Index
Futures
2
USD
129
03/21
4
S&P
500
E-Mini
Index
Futures
36
USD
6,748
03/21
196
United
States
Treasury
Ultra
Bond
Futures
2
USD
427
03/21
(6)
Short
Positions
Hang
Seng
Index
Futures
3
HKD
4,083
01/21
(16)
NASDAQ
100
E-Mini
Index
Futures
12
USD
3,093
03/21
(123)
TOPIX
Index
Futures
12
JPY
216,540
03/21
(57)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(4)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
State
Street
USD
107
KRW
116,630
03/17/21
1
UBS
KRW
116,630
USD
108
03/17/21
—
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
1
Credit
Default
Swap
Contracts
Amounts
in
thousands
Credit
Indices
Reference
Entity
Counterparty
Purchase/Sell
Protection
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
CDX
NA
High
Yield
Index
Bank
of
America
Purchase
USD
500
(5.000%)
(2)
12/20/25
(17)
(30)
(47)
Total
Open
Credit
Indices
Contracts
(å)
(17)
(30)
(47)
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
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
$
43,233
$
—
$
—
$
—
$
43,233
95.4
Short-Term
Investments
—
—
—
1,289
1,289
2.8
Total
Investments
43,233
—
—
1,289
44,522
98.2
Other
Assets
and
Liabilities,
Net
1.8
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
215
—
—
—
215
0.5
Foreign
Currency
Exchange
Contracts
—
1
—
—
1
—
*
'
Liabilities
Futures
Contracts
(219)
—
—
—
(219)
(0.5)
Credit
Default
Swap
Contracts
—
(47)
—
—
(47)
(0.1)
Total
Other
Financial
Instruments
**
$
(4)
$
(46)
$
—
$
—
$
(50)
*
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
into
and
out
of
Level
3
during
the
period
ended
December
31,
2020,
see
note
2
in
the
Notes
to
Financial
Statements.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
64
Equity
Growth
Strategy
Fund
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
December
31,
2020
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
$
—
$
—
$
1
$
—
Variation
margin
on
futures
contracts*
215
—
—
—
Total
$
215
$
—
$
1
$
—
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
213
$
—
$
—
$
6
Credit
default
swap
contracts,
at
fair
value
—
47
—
—
Total
$
213
$
47
$
—
$
6
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
$
(501)
$
—
$
—
$
10
Credit
default
swap
contracts
—
103
—
—
Foreign
currency
exchange
contracts
—
—
21
—
Total
$
(501)
$
103
$
21
$
10
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
166
$
—
$
—
$
(6)
Credit
default
swap
contracts
—
10
—
—
Foreign
currency
exchange
contracts
—
—
19
—
Total
$
166
$
10
$
19
$
(6)
*
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
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
65
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
1
$
—
$
1
Total
Financial
and
Derivative
Assets
1
—
1
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
1
$
—
$
1
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
State
Street
$
1
$
—
$
—
$
1
Total
$
1
$
—
$
—
$
1
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
December
31,
2020
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
66
Equity
Growth
Strategy
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
$
47
$
—
$
47
Total
Financial
and
Derivative
Liabilities
47
—
47
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
47
$
—
$
47
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
$
47
$
—
$
47
$
—
Total
$
47
$
—
$
47
$
—
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
67
Statement
of
Assets
and
Liabilities
—
December
31,
2020
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
36,860
Investments,
at
fair
value(>)
...........................................................................................................................................................
44,522
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
1
Receivables:
Investments
sold
................................................................................................................................................................
3
From
affiliates
....................................................................................................................................................................
6
From
broker(a)(b)
...............................................................................................................................................................
918
Total
assets
.................................................................................................................................................
45,450
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
3
Accrued
fees
to
affiliates
....................................................................................................................................................
2
Other
accrued
expenses
.....................................................................................................................................................
72
Variation
margin
on
futures
contracts
.................................................................................................................................
4
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
47
Total
liabilities
.............................................................................................................................................
128
Net
Assets
............................................................................................................................................................
$
45,322
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
68
Equity
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities,
continued
—
December
31,
2020
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
5,675
Shares
of
beneficial
interest
...........................................................................................................................................................
48
Additional
paid-in
capital
..............................................................................................................................................................
39,599
Net
Assets
............................................................................................................................................................
$
45,322
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
9.50
Net
assets
...............................................................................................................................................................................
$
45,321,788
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
4,772,105
Amounts
in
thousands
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(17)
(>)
Investments
in
affiliated
funds
$
44,522
(a)
Receivable
from
Broker
for
Futures
$
842
(b)
Receivable
from
Broker
for
Swaps
$
76
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
69
Statement
of
Operations
—
For
the
Period
Ended
December
31,
2020
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
460
Expenses
Advisory
fees
....................................................................................................................................................................
84
Administrative
fees
...........................................................................................................................................................
18
Custodian
fees
...................................................................................................................................................................
56
Transfer
agent
fees
............................................................................................................................................................
2
Professional
fees
...............................................................................................................................................................
39
Trustees’
fees
....................................................................................................................................................................
2
Printing
fees
......................................................................................................................................................................
11
Miscellaneous
...................................................................................................................................................................
6
Expenses
before
reductions
..............................................................................................................................................
218
Expense
reductions
...........................................................................................................................................................
(155)
Net
expenses
.................................................................................................................................................................................
63
Net
investment
income
(loss)
........................................................................................................................................................
397
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
(2,177)
Futures
contracts
..............................................................................................................................................................
(491)
Foreign
currency
exchange
contracts
................................................................................................................................
21
Credit
default
swap
contracts
............................................................................................................................................
103
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
2,147
Net
realized
gain
(loss)
..................................................................................................................................................................
(397)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
2,441
Futures
contracts
..............................................................................................................................................................
160
Foreign
currency
exchange
contracts
................................................................................................................................
19
Credit
default
swap
contracts
............................................................................................................................................
10
Foreign
currency-related
transactions
...............................................................................................................................
(4)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
2,626
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
2,229
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
2,626
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
70
Equity
Growth
Strategy
Fund
Statements
of
Changes
in
Net
Assets
For
the
Periods
Ended
December
31,
Amounts
in
thousands
2020
2019
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
397
$
1,140
Net
realized
gain
(loss)
......................................................................................................................
(397
)
1,855
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
2,626
5,903
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
2,626
8,898
Distributions
To
shareholders
.................................................................................................................................
(2,227
)
(3,114
)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(2,227
)
(3,114
)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(4,393
)
(4,098
)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(3,994
)
1,686
Net
Assets
Beginning
of
period
.................................................................................................................................
49,316
47,630
End
of
period
..........................................................................................................................................
$
45,322
$
49,316
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
December
31,
2020
and
December
31,
2019
were
as
follows:
2020
2019
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
324
$
2,716
250
$
2,157
Proceeds
from
reinvestment
of
distributions
256
2,227
369
3,114
Payments
for
shares
redeemed
(1,168)
(9,336)
(1,094)
(9,369)
Total
increase
(decrease)
(588)
$
(4,393)
(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.
72
Equity
Growth
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(d)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
December
31,
2020
9.20
.08
.64
.72
(.17)
(.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)
—
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
73
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(e)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(c)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(c)(d)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(d)
%
Portfolio
Turnover
Rate
(.42)
9.50
8.26
45,322
.52
.15
.95
28
(.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
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
74
Equity
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
Accrued
fees
payable
to
affiliates
for
the
period
ended
December
31,
2020
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
December
31,
2020
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
At
December
31,
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:
For
the
fiscal
years
ended
December
31,
2020
and
December
31,
2019,
respectively,
the
Fund
made
the
following
tax
basis
distributions:
Net
investment
income
and
net
realized
gains
(losses)
in
the
financial
statements
may
differ
from
taxable
net
investment
income
and
net
realized
gains
(losses).
Capital
accounts
within
the
financial
statements
are
adjusted
for
permanent
differences
between
book
and
tax
accounting.
Book-tax
differences
may
be
due
to
foreign
currency
gains
and
losses,
reclassifications
of
dividends
and
differences
in
treatment
of
income
from
swaps.
These
adjustments
have
no
impact
on
the
net
assets.
At
December
31,
2020,
there
were
no
adjustments
to
the
Statement
of
Assets
and
Liabilities.
Administration
fees
$
1,619
Transfer
agent
fees
168
Trustee
fees
299
$
2,086
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
$
186
$
1,021
$
(188
)
$
47
$
—
$
—
$
—
RIF
Global
Real
Estate
Securities
Fund
1,449
239
298
(35
)
(56
)
1,299
18
—
RIF
U.S.
Small
Cap
Equity
Fund
5,828
1,424
1,775
(311
)
819
5,985
3
127
RIF
U.S.
Strategic
Equity
Fund
10,735
902
3,359
(431
)
1,753
9,600
38
91
RIC
Unconstrained
Total
Return
Fund
5,284
1,474
3,262
(203
)
(28
)
3,265
73
—
RIC
Emerging
Markets
Fund
3,945
1,167
990
(83
)
360
4,399
25
—
RIC
Global
Equity
Fund
10,215
2,939
2,522
(612
)
(866
)
9,154
199
1,929
RIF
International
Developed
Markets
Fund
7,273
2,092
1,676
(218
)
356
7,827
83
—
RIC
Multi-Asset
Growth
Strategy
Fund
1,927
347
529
(97
)
56
1,704
14
—
U.S.
Cash
Management
Fund
958
22,708
22,378
1
—
1,289
7
—
$
48,590
$
33,478
$
37,810
$
(2,177
)
$
2,441
$
44,522
$
460
$
2,147
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
(Capital
Loss
Carryforward)
$
38,037,516
$
6,761,011
$
(395,848
)
$
6,365,163
$
341,640
$
(528,606)
December
31,
2020
December
31,
2019
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
Ordinary
Income
Distributions
Long-Term
Capital
Gain
Distributions
Return
of
Capital
$
906,724
$
1,320,148
$
—
$
112,615
$
3,001,276
$
—
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Schedule
of
Investments
—
December
31,
2020
Notes
to
Schedule
of
Investments
75
Footnotes:
Foreign
Currency
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.
AUD
-
Australian
dollar
HKD
-
Hong
Kong
dollar
RUB
-
Russian
ruble
BRL
-
Brazilian
real
ILS
-
Israeli
shekel
SEK
-
Swedish
krona
CAD
-
Canadian
dollar
INR
-
Indian
rupee
SGD
-
Singapore
dollar
CHF
-
Swiss
franc
JPY
-
Japanese
yen
TWD
-
Taiwanese
dollar
CNY
-
Chinese
renminbi
yuan
KRW
-
South
Korean
won
USD
-
United
States
dollar
DKK
-
Danish
krone
MXN
-
Mexican
peso
ZAR
-
South
African
rand
EUR
-
Euro
NOK
-
Norwegian
krone
GBP
-
British
pound
sterling
NZD
-
New
Zealand
dollar
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Highlights
—
December
31,
2020
76
Notes
to
Financial
Highlights
(a)
Average
daily
shares
outstanding
were
used
for
this
calculation.
(b)
Recognition
of
net
investment
income
by
the
Fund
is
affected
by
the
timing
of
the
declaration
of
dividends
by
the
Underlying
Funds
in
which
the
Fund
invests.
(c)
The
calculation
includes
only
those
expenses
charged
directly
to
the
Fund
and
does
not
include
expenses
charged
to
the
Underlying
Funds
in
which
the
Fund
invests.
(d)
May
reflect
amounts
waived
and
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(e)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
(f)
Less
than
$.01
per
share.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements
—
December
31,
2020
Notes
to
Financial
Statements
77
Organization
Russell
Investment
Funds
(the
“Investment
Company”
or
“RIF”)
is
a
series
investment
company
with
nine
different
investment
portfolios
referred
to
as
funds.
These
financial
statements
report
on
four
of
these
funds
(each
a
“Fund”
and
collectively
the
“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
Third
Amended
and
Restated
Master
Trust
Agreement
dated
December
7,
2020,
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
Fund's
approximate
expected
target
strategic
asset
allocation
to
equity,
fixed
income,
multi-asset,
and
alternative
asset
classes
effective
May
1,
2020.
As
of
December
31,
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
—
December
31,
2020
78
Notes
to
Financial
Statements
Significant
Accounting
Policies
The
Funds’
financial
statements
are
prepared
in
accordance
with
U.S.
generally
accepted
accounting
principles
(“U.S.
GAAP”)
which
require
the
use
of
management
estimates
and
assumptions
at
the
date
of
the
financial
statements.
Actual
results
could
differ
from
those
estimates.
The
Funds
are
considered
investment
companies
under
U.S.
GAAP
and
follow
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
The
following
is
a
summary
of
the
significant
accounting
policies
consistently
followed
by
each
Fund
in
the
preparation
of
its
financial
statements.
In
August
2018,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2018-13,
Fair
Value
Measurement
(Topic
820):
Disclosure
Framework
-
Changes
to
the
Disclosure
Requirements
for
Fair
Value
Measurements.
The
amendments
in
the
ASU
modify
the
disclosure
requirements
on
fair
value
measurements
in
Topic
820.
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
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.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
79
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
the
period
ended
December
31,
2020,
there
were
no
transfers
into
or
out
of
Level
3
of
the
fair
value
hierarchy.
Level
3
Fair
Value
Investments
The
valuation
techniques
and
significant
inputs
used
in
determining
the
fair
values
of
financial
instruments
classified
as
Level
3
of
the
fair
value
hierarchy
are
as
follows:
Securities
and
other
assets
for
which
market
quotes
are
not
readily
available,
or
are
not
reliable,
are
valued
at
fair
value
as
determined
in
good
faith
by
RIFUS
and
are
categorized
as
Level
3
of
the
fair
value
hierarchy.
Market
quotes
are
considered
not
readily
available
in
circumstances
where
there
is
an
absence
of
current
or
reliable
market-based
data
(e.g.,
trade
information
or
broker
quotes).
When
RIFUS
applies
fair
valuation
methods
that
use
significant
unobservable
inputs
to
determine
a
Fund’s
NAV,
securities
will
not
be
priced
on
the
basis
of
quotes
from
the
primary
market
in
which
they
are
traded,
but
instead
may
be
priced
by
another
method
that
RIFUS
believes
accurately
reflects
fair
value
and
will
be
categorized
as
Level
3
of
the
fair
value
hierarchy.
Fair
value
pricing
may
require
subjective
determinations
about
the
value
of
a
security.
While
the
securities
valuation
procedures
are
intended
to
result
in
a
calculation
of
a
Fund’s
NAV
that
fairly
reflects
security
values
as
of
the
time
of
pricing,
the
process
cannot
guarantee
that
fair
values
determined
by
RIFUS
would
accurately
reflect
the
price
that
a
Fund
could
obtain
for
a
security
if
it
were
to
dispose
of
that
security
as
of
the
time
of
pricing
(for
instance,
in
a
forced
or
distressed
sale).
The
prices
used
by
a
Fund
may
differ
from
the
value
that
would
be
realized
if
the
security
was
sold.
RIFUS
employs
third-party
pricing
vendors
to
provide
fair
value
measurements.
RIFUS
oversees
third-party
pricing
service
providers
in
order
to
support
the
valuation
process
throughout
the
year.
If
third-party
evaluated
vendor
pricing
is
neither
available
nor
deemed
to
be
indicative
of
fair
value,
RIFUS
may
elect
to
obtain
indicative
market
quotations
(“broker
quotes”)
directly
from
the
broker
or
passed
through
from
a
third-party
vendor.
In
the
event
that
the
source
of
fair
value
is
from
a
single
source
broker
quote,
these
securities
are
classified
as
Level
3
per
the
fair
value
hierarchy.
Broker
quotes
are
typically
received
from
established
market
participants.
Although
independently
received
on
a
daily
basis,
RIFUS
does
not
have
the
transparency
to
view
the
underlying
inputs
which
support
the
broker
quotes.
Significant
changes
in
the
broker
quote
would
have
direct
and
proportional
changes
in
the
fair
value
of
the
security.
There
is
a
third-party
pricing
exception
to
the
quantitative
disclosure
requirement
when
prices
are
not
determined
by
the
reporting
entity.
RIFUS
is
exercising
this
exception
and
has
made
a
reasonable
attempt
to
obtain
quantitative
information
from
the
third-party
pricing
vendors
regarding
the
unobservable
inputs
used.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
80
Notes
to
Financial
Statements
For
fair
valuations
using
significant
unobservable
inputs,
U.S.
GAAP
requires
a
reconciliation
of
the
beginning
to
ending
balances
for
reported
fair
values
that
present
changes
attributable
to
total
realized
and
unrealized
gains
or
losses,
purchases
and
sales,
and
transfers
in/out
of
the
Level
3
category
during
the
period.
Additionally,
U.S.
GAAP
requires
quantitative
information
regarding
the
significant
unobservable
inputs
used
in
the
determination
of
fair
value
of
assets
categorized
as
Level
3
in
the
fair
value
hierarchy.
In
accordance
with
the
requirements
of
U.S.
GAAP,
a
fair
value
hierarchy,
a
Level
3
reconciliation
and
an
additional
disclosure
about
fair
value
measurements,
if
any,
has
been
included
in
the
Presentation
of
Portfolio
Holdings
for
each
respective
Fund.
Investment
Transactions
Investment
transactions
are
reflected
as
of
the
trade
date
for
financial
reporting
purposes.
This
may
cause
the
NAV
stated
in
the
financial
statements
to
be
different
from
the
NAV
at
which
shareholders
may
transact.
Realized
gains
and
losses
from
securities
transactions,
if
applicable,
are
recorded
on
the
basis
of
specific
identified
cost
incurred
within
a
particular
Fund.
Investment
Income
Distributions
of
income
and
capital
gains
from
the
Funds
or
Underlying
Funds
are
recorded
on
the
ex-dividend
date.
Federal
Income
Taxes
Since
the
Investment
Company
is
a
Massachusetts
business
trust,
each
Fund
is
a
separate
corporate
taxpayer
and
determines
its
net
investment
income
and
capital
gains
(or
losses)
and
the
amounts
to
be
distributed
to
each
Fund’s
shareholders
without
regard
to
the
income
and
capital
gains
(or
losses)
of
the
other
Funds.
For
each
year,
each
Fund
intends
to
qualify
or
continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
of
1986,
as
amended
(the
“Code”)
and
intends
to
distribute
all
of
its
taxable
income
and
capital
gains.
Therefore,
no
federal
income
tax
provision
is
required
for
the
Funds.
The
Funds
comply
with
the
authoritative
guidance
for
uncertainty
in
income
taxes
which
requires
management
to
determine
whether
a
tax
position
of
the
Funds
is
more
likely
than
not
to
be
sustained
upon
examination,
including
resolution
of
any
related
appeals
or
litigation
processes,
based
on
the
technical
merits
of
the
position.
For
tax
positions
meeting
the
more
likely
than
not
threshold,
the
tax
amount
recognized
in
the
financial
statements
is
reduced
by
the
largest
benefit
that
has
a
greater
than
50%
likelihood
of
being
realized
upon
ultimate
settlement
with
the
relevant
taxing
authority.
Management
determined
that
no
accruals
need
to
be
made
in
the
financial
statements
due
to
uncertain
tax
positions.
Management
continually
reviews
and
adjusts
the
Funds’
liability
for
income
taxes
based
on
analyses
of
tax
laws
and
regulations,
as
well
as
their
interpretations,
and
other
relevant
factors.
Each
Fund
files
a
U.S.
tax
return.
At
December
31,
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.
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
81
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
October
2020,
the
Securities
and
Exchange
Commission
("SEC")
adopted
a
final
rule
related
to
the
use
of
derivatives,
reverse
repurchase
agreements
and
certain
other
transactions
by
registered
investment
companies
that
will
rescind
and
withdraw
the
guidance
of
the
SEC
and
its
staff
regarding
asset
segregation
and
cover
transactions.
The
final
rule
requires
funds
to
trade
derivatives
and
other
transactions
that
create
future
payment
or
delivery
obligations
(except
reverse
repurchase
agreements
and
similar
financing
transactions)
subject
to
a
value-at-risk
leverage
limit
and
certain
derivatives
risk
management
program
and
reporting
requirements.
Compliance
with
these
new
requirements
will
be
required
after
an
eighteen-month
transition
period.
Following
the
compliance
date,
these
requirements
may
limit
the
ability
of
a
Fund
to
use
derivatives
and
reverse
repurchase
agreements
and
similar
financing
transactions
as
part
of
its
investment
strategies.
The
effects
of
derivative
instruments,
categorized
by
risk
exposure,
on
the
Statement
of
Assets
and
Liabilities
and
the
Statement
of
Operations,
for
the
period
ended
December
31,
2020,
if
applicable,
are
disclosed
in
the
Fair
Value
of
Derivative
Instruments
table
following
each
applicable
Fund’s
Schedule
of
Investments.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
82
Notes
to
Financial
Statements
Foreign
Currency
Exchange
Contracts
The
Funds
may
enter
into
foreign
currency
exchange
spot
contracts
and
forward
foreign
currency
exchange
contracts
(“FX
contracts”).
From
time
to
time,
the
Funds
may
enter
into
FX
contracts
to
hedge
certain
foreign
currency-denominated
assets.
FX
contracts
are
recorded
at
fair
value.
Certain
risks
may
arise
upon
entering
into
these
FX
contracts
from
the
potential
inability
of
counterparties
to
meet
the
terms
of
their
FX
contracts
and
are
generally
limited
to
the
amount
of
unrealized
gain
on
the
FX
contracts,
if
any,
that
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
For
the
period
ended
December
31,
2020,
the
following
Funds
entered
into
foreign
currency
exchange
contracts
primarily
for
the
strategies
listed
below:
The
Funds'
foreign
currency
exchange
contract
notional
dollar
values
outstanding
fluctuate
throughout
the
fiscal
year
as
required
to
meet
strategic
objectives.
The
following
tables
illustrate
the
quarterly
volume
of
foreign
currency
exchange
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.
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
September
30,
2020
December
31,
2020
Moderate
Strategy
Fund
$
5,746,662
$
5,780,913
$
11,544,035
$
5,637,002
Balanced
Strategy
Fund
23,100,993
23,327,044
44,680,391
13,634,729
Growth
Strategy
Fund
21,406,205
21,539,379
47,766,518
12,656,360
Equity
Growth
Strategy
Fund
6,257,969
6,326,470
12,981,405
214,159
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2020
June
30,
2020
September
30,
2020
December
31,
2020
Moderate
Strategy
Fund
$
5,695,450
$
5,774,852
$
11,546,158
$
5,661,127
Balanced
Strategy
Fund
23,440,013
23,562,542
44,650,421
13,659,792
Growth
Strategy
Fund
21,784,086
21,796,203
47,781,870
12,665,689
Equity
Growth
Strategy
Fund
6,336,457
6,388,657
12,973,839
214,890
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
83
The
Funds’
use
of
written
options
involves,
to
varying
degrees,
elements
of
market
risk
in
excess
of
the
amount
recognized
in
the
Statements
of
Assets
and
Liabilities.
The
face
or
contract
amounts
of
these
instruments
reflect
the
extent
of
the
Funds’
exposure
to
market
risk.
The
risks
may
be
caused
by
an
imperfect
correlation
between
movements
in
the
price
of
the
instrument
and
the
price
of
the
underlying
securities
and
interest
rates.
The
Funds
may
enter
into
a
swaption
(an
option
on
a
swap).
In
a
swaption,
in
exchange
for
an
option,
the
buyer
gains
the
right
but
not
the
obligation
to
enter
into
a
specified
swap
agreement
with
the
issuer
on
a
specified
future
date.
The
writer
of
the
contract
receives
the
premium
and
bears
the
risk
of
unfavorable
changes
in
the
preset
rate
on
the
underlying
swap.
For
the
period
ended
December
31,
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
December
31,
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
objectives.
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
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
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
September
30,
2020
December
31,
2020
Moderate
Strategy
Fund
$
22,090,672
$
31,368,813
$
25,286,172
$
27,788,207
Balanced
Strategy
Fund
60,809,523
79,177,352
77,995,578
91,161,262
Growth
Strategy
Fund
47,520,098
56,705,705
61,580,410
75,485,741
Equity
Growth
Strategy
Fund
15,330,252
20,151,215
17,251,462
15,949,031
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
84
Notes
to
Financial
Statements
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
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
85
poll
of
dealers
to
be
the
most
liquid
entities
in
the
credit
default
swap
market
based
on
the
sector
of
the
index.
Components
of
the
indices
may
include,
but
are
not
limited
to,
investment
grade
securities,
high
yield
securities,
asset-backed
securities,
emerging
markets,
and/or
various
credit
ratings
within
each
sector.
Credit
indices
are
traded
using
credit
default
swaps
with
standardized
terms
including
a
fixed
spread
and
standard
maturity
dates.
An
index
credit
default
swap
references
all
the
names
in
the
index,
and
if
there
is
a
default,
the
credit
event
is
settled
based
on
that
name’s
weight
in
the
index.
The
composition
of
the
indices
changes
periodically,
usually
every
six
months,
and,
for
most
indices,
each
name
has
an
equal
weight
in
the
index.
Traders
may
use
credit
default
swaps
on
indices
to
speculate
on
changes
in
credit
quality.
Implied
credit
spreads,
represented
in
absolute
terms,
utilized
in
determining
the
fair
value
of
credit
default
swap
agreements
on
corporate
issues
as
of
period-end
are
disclosed
in
the
Schedules
of
Investments
and
generally
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
(or
other
defined
credit
event)
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
entering
into
a
credit
default
swap
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
For
credit
default
swap
agreements
on
asset-
backed
securities
and
credit
indices,
the
quoted
market
prices
and
resulting
values
serve
as
the
indicator
of
the
current
status
of
the
payment/performance
risk.
Wider
credit
spreads
and
increasing
fair
values,
in
absolute
terms
when
compared
to
the
notional
amount
of
the
swap,
generally
represent
a
deterioration
of
the
referenced
entity’s
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
Funds
as
a
seller
of
protection
could
be
required
to
make
under
a
credit
default
swap
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
all
credit
default
swap
agreements
outstanding
as
of
December
31,
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
December
31,
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
objectives.
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
—
December
31,
2020
86
Notes
to
Financial
Statements
Total
Return
Swaps
The
Funds
may
enter
into
total
return
swap
agreements
to
expose
cash
to
markets
or
to
effect
investment
transactions.
Total
return
swap
agreements
are
two
party
contracts
entered
into
primarily
by
institutional
investors
for
periods
ranging
from
a
few
weeks
to
more
than
one
year.
In
a
standard
total
return
swap
transaction,
the
two
parties
agree
to
exchange
the
returns
(or
differentials
in
rates
of
return)
earned
or
realized
on
particular
investments
or
instruments.
The
returns
to
be
exchanged
between
the
parties
are
calculated
with
respect
to
a
“notional
amount”
(i.e.,
a
specified
dollar
amount
that
is
hypothetically
invested
in
a
“basket”
of
securities
representing
a
particular
index).
For
the
period
ended
December
31,
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
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
(“FCA”),
which
regulates
LIBOR,
has
announced
plans
to
phase
out
the
use
of
LIBOR
by
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2020
June
30,
2020
September
30,
2020
December
31,
2020
Moderate
Strategy
Fund
$
17,500,000
$
7,420,000
$
3,400,000
$
11,000,000
Balanced
Strategy
Fund
30,300,000
9,228,956
2,430,000
8,430,000
Growth
Strategy
Fund
8,300,000
5,300,000
3,400,000
10,400,000
Equity
Growth
Strategy
Fund
2,700,000
1,615,000
500,000
500,000
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
87
the
end
of
2021.
However,
subsequent
announcements
by
the
FCA,
the
LIBOR
administrator
and
other
regulators
indicate
that
it
is
possible
that
certain
LIBORs
may
continue
beyond
2021
and
certain
of
the
most
widely
used
LIBORs
may
continue
until
mid-
2023.
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
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.
Global
financial
markets
have
experienced
and
may
continue
to
experience
significant
volatility
resulting
from
the
spread
of
a
novel
coronavirus
known
as
COVID-19.
The
outbreak
of
COVID-19
has
resulted
in
travel
and
border
restrictions,
quarantines,
supply
chain
disruptions,
lower
consumer
demand
and
general
market
uncertainty.
The
effects
of
COVID-19
and
the
resulting
market
impact
have
and
may
continue
to
adversely
affect
the
global
economy,
the
economies
of
certain
nations
and
individual
issuers,
all
of
which
may
adversely
impact
a
Fund's
investments
and
performance.
Investment
Transactions
Securities
During
the
period
ended
December
31,
2020,
purchases
and
sales
of
investment
securities
(excluding
short-term
investments
and
options)
were
as
follows:
Purchases
Sales
Moderate
Strategy
Fund
$
20,019,126
$
31,458,615
Balanced
Strategy
Fund
37,001,777
58,901,550
Growth
Strategy
Fund
27,216,501
46,480,268
Equity
Growth
Strategy
Fund
10,769,571
15,432,074
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
88
Notes
to
Financial
Statements
Related
Party
Transactions,
Fees
and
Expenses
Adviser,
Administrator,
Transfer
and
Dividend
Disbursing
Agent
RIM
provides
or
oversees
the
provision
of
all
investment
advisory
and
portfolio
management
services
for
the
Funds.
RIFUS
is
the
Funds'
administrator
and
transfer
agent.
RIFUS,
in
its
capacity
as
the
Funds'
administrator,
provides
or
oversees
the
provision
of
all
administrative
services
for
the
Funds.
RIFUS,
in
its
capacity
as
the
Funds'
transfer
agent
and
dividend
disbursing
agent,
is
responsible
for
providing
transfer
agency
and
dividend
disbursing
services
to
the
Funds.
RIFUS
is
a
wholly-owned
subsidiary
of
RIM.
RIM
is
an
indirect,
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company.
The
Funds
are
permitted
to
invest
their
cash
(i.e.,
cash
awaiting
investment
or
cash
held
to
meet
redemption
requests
or
to
pay
expenses)
in
the
U.S.
Cash
Management
Fund,
an
unregistered
fund
advised
by
RIM.
Each
Fund’s
investment
in
the
U.S.
Cash
Management
Fund
is
disclosed
within
the
Fund’s
Schedule
of
Investments.
An
affiliated
company
is
a
company
in
which
a
Fund
has
ownership
of
at
least
5%
of
the
voting
securities
or
which
the
Fund
controls,
is
controlled
by
or
is
under
common
control
with.
See
each
Fund’s
Related
Party
Transactions,
Fees
and
Expenses
for
disclosure
of
transactions
with
affiliated
companies.
The
advisory
fee
of
0.20%
is
based
upon
the
average
daily
net
assets
of
each
Fund
and
the
administration
fee
of
up
to
0.0425%
is
based
on
the
combined
average
daily
net
assets
of
the
Funds.
Advisory
and
administration
fees
are
paid
monthly.
The
following
table
shows
the
total
amount
of
each
of
these
fees
paid
by
the
Funds
for
the
period
ended
December
31,
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
December
31,
2020,
RIM
waived/reimbursed
the
following
expenses:
Advisory
Administration
Moderate
Strategy
Fund
$
180,988
$
38,460
Balanced
Strategy
Fund
464,745
98,758
Growth
Strategy
Fund
364,062
77,363
Equity
Growth
Strategy
Fund
83,649
17,775
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
Notes
to
Financial
Statements
89
RIM
does
not
have
the
ability
to
recover
amounts
waived
or
reimbursed
from
previous
periods.
Transfer
and
Dividend
Disbursing
Agent
RIFUS
serves
as
transfer
agent
and
provides
dividend
disbursing
services
to
the
Funds.
For
this
service,
RIFUS
is
paid
a
fee
based
upon
the
average
daily
net
assets
of
the
Funds
for
transfer
agency
and
dividend
disbursing
services.
RIFUS
retains
a
portion
of
this
fee
for
its
services
provided
to
the
Funds
and
pays
the
balance
to
unaffiliated
agents
who
assist
in
providing
these
services.
Transfer
agency
fees
paid
by
the
Funds
presented
herein
for
the
period
ended
December
31,
2020
were
as
follows:
Distributor
Russell
Investments
Financial
Services,
LLC,
(the
“Distributor”),
a
wholly-owned
subsidiary
of
RIM,
serves
as
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
33
funds
and
RIF,
which
has
9
funds.
Each
of
the
Trustees
is
a
Trustee
of
RIC
and
RIF.
The
Russell
Investments
Fund
Complex
compensates
each
Trustee
who
is
not
an
employee
of
RIM
or
its
affiliates.
Trustee
compensation
and
expenses
are
allocated
to
each
Fund
based
on
its
net
assets
relative
to
other
funds
in
the
Russell
Investments
Fund
Complex.
For
the
period
ended
December
31,
2020,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$1,730,750.
Federal
Income
Taxes
At
December
31,
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.
Available
capital
loss
carryforwards
are
as
follows:
Under
the
Regulated
Investment
Company
Modernization
Act
of
2010,
the
Funds
are
permitted
to
carry
forward
capital
losses
incurred
in
taxable
years
beginning
after
December
22,
2010
for
an
unlimited
period.
Additionally,
post-enactment
capital
losses
that
are
carried
forward
will
retain
their
character
as
either
short-term
or
long-term
capital
losses
rather
than
being
considered
all
short-term
as
under
previous
law.
Waiver
Reimbursement
Total
Moderate
Strategy
Fund
$
180,988
$
47,841
$
228,829
Balanced
Strategy
Fund
430,058
—
430,058
Growth
Strategy
Fund
333,286
—
333,286
Equity
Growth
Strategy
Fund
83,649
71,342
154,991
Amount
Moderate
Strategy
Fund
$
3,982
Balanced
Strategy
Fund
10,224
Growth
Strategy
Fund
8,009
Equity
Growth
Strategy
Fund
1,840
No
Expiration
Funds
Short
Term
Long-Term
Totals
Equity
Growth
Strategy
Fund
$
528,606
$
—
$
528,606
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
December
31,
2020
90
Notes
to
Financial
Statements
Record
Ownership
As
of
December
31,
2020,
the
following
table
includes
shareholders
of
record
with
greater
than
10%
of
the
total
outstanding
shares
of
each
respective
Fund.
Subsequent
Events
Management
has
evaluated
the
events
and/or
transactions
that
have
occurred
through
the
date
the
financial
statements
were
issued
and
noted
no
events
have
occurred
that
require
disclosure.
#
of
Shareholders
%
Moderate
Strategy
Fund
1
87.1
Balanced
Strategy
Fund
2
97.9
Growth
Strategy
Fund
2
97.5
Equity
Growth
Strategy
Fund
2
96.3
Report
of
Independent
Registered
Public
Accounting
Firm
Report
of
Independent
Registered
Public
Accounting
Firm
91
To
the
Board
of
Trustees
of
Russell
Investment
Funds
and
Shareholders
of
Moderate
Strategy
Fund,
Balanced
Strategy
Fund,
Growth
Strategy
Fund
and
Equity
Growth
Strategy
Fund
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
Moderate
Strategy
Fund,
Balanced
Strategy
Fund,
Growth
Strategy
Fund
and
Equity
Growth
Strategy
Fund
(four
of
the
funds
constituting
Russell
Investment
Funds,
hereafter
collectively
referred
to
as
the
“Funds”)
as
of
December
31,
2020,
the
related
statements
of
operations
for
the
year
ended
December
31,
2020,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2020,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2020
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
December
31,
2020,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2020
and
each
of
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2020
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
December
31,
2020
by
correspondence
with
the
transfer
agents
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
February
12,
2021
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Russell
Investments
family
of
funds
since
1981.
PricewaterhouseCoopers
LLP,
1420
Fifth
Avenue,
Suite
2800,
Seattle,
WA
98101
T:
(206)
398
3000,
F:
(206)
398
3100,
www.pwc.com/us
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Tax
Information
—
December
31,
2020
(Unaudited)
92
Tax
Information
For
the
tax
year
ended
December
31,
2020,
the
Funds
designate
100%,
or
the
maximum
amount
allowable,
of
their
net
taxable
income
as
qualified
dividends
taxed
at
individual
net
capital
gain
rates.
The
Form
1099
you
receive
in
January
2021
will
show
the
tax
status
of
all
distributions
paid
to
your
account
in
calendar
year
2020.
The
Funds
designate
dividends
distributed
during
the
fiscal
year
as
qualifying
for
the
dividends
received
deduction
for
corporate
shareholders
as
follows:
Pursuant
to
Section
852
of
the
Internal
Revenue
Code,
the
Funds
designate
the
following
amounts
as
long-term
capital
gain
dividends
for
their
taxable
year
ended
December
31,
2020:
Moderate
Strategy
$
—
Balanced
Strategy
$3,571,549
Growth
Strategy
$3,419,149
Equity
Growth
Strategy
$1,320,148
Moderate
Strategy
5.5%
Balanced
Strategy
10.1%
Growth
Strategy
28.8%
Equity
Growth
Strategy
18.9%
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Shareholder
Requests
for
Additional
Information
—
December
31,
2020
(Unaudited)
Shareholder
Requests
for
Additional
Information
93
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,
2020
are
available
(i)
free
of
charge,
upon
request,
by
calling
the
Funds
at
(800)
787-
7354,
and
(ii)
on
the
Securities
and
Exchange
Commission’s
website
at
www.sec.gov.
If
possible,
depending
on
contract
owner
registration
and
address
information,
and
unless
you
have
otherwise
opted
out,
only
one
copy
of
the
RIF
prospectus
and
each
annual
and
semi-annual
report
will
be
sent
to
contract
owners
at
the
same
address.
If
you
would
like
to
receive
a
separate
copy
of
these
documents,
please
contact
your
Insurance
Company.
If
you
currently
receive
multiple
copies
of
the
prospectus,
annual
report
and
semi-annual
report
and
would
like
to
request
to
receive
a
single
copy
of
these
documents
in
the
future,
please
call
your
Insurance
Company.
Some
Insurance
Companies
may
offer
electronic
delivery
of
the
Funds’
prospectuses
and
annual
and
semi-annual
reports.
Please
contact
your
Insurance
Company
for
further
details.
Financial
statements
of
the
Underlying
Funds
can
be
obtained
at
no
charge
by
calling
the
Funds
at
(800)787-7354.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers
—
December
31,
2020
(Unaudited)
94
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
33
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)
42
None
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)
42
Lead
Independent
Director,
Avista
Corp.
(electric
utilities)
Until
May
2017,
Director,
Avista
Corp
(electric
utilities)
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
December
31,
2020
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
95
*
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)
42
Trustee
and
Chairperson
of
Select
Sector
SPDR
Funds
(investment
company)
From
August
2012
through
May
2016,
Trustee,
ALPS
Series
Trust
(investment
company)
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
42
None
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)
42
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
December
31,
2020
(Unaudited)
96
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
42
None
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
42
None
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
42
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
—
December
31,
2020
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
97
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
—
December
31,
2020
(Unaudited)
98
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
and
Chief
Legal
Officer
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]
(a) As of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer (“Code”).
(b) That Code comprises written standards that are reasonably designed to deter wrongdoing and to promote:
1) honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
2) full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by each Mutual Fund;
3) compliance with applicable laws and governmental rules and regulations;
4) the prompt internal reporting to an appropriate person or persons identified in the Code of violations of the Code; and
5) accountability for adherence to the Code.
(c) The Code was restated as of August 2020; the restatement did not involve any material change.
(d) As of the end of the period covered by the report, there have been no waivers granted from a provision of the Code that applies to the registrant’s principal executive officer and principal financial officer.
(e) Not applicable.
(f) The registrant has filed with the SEC, pursuant to Item 12(a)(1), a copy of the Code that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, as an exhibit to its annual report on this Form N-CSR.
Item 3. Audit Committee Financial Expert. [Annual Report Only]
Registrant's board of trustees has determined that the Registrant has at least one audit committee financial expert serving on its audit committee. Cheryl Burgermeister has been determined to be the Audit Committee Financial Expert and is also determined to be “independent” for purposes of Item 3, paragraph (a)(2)(i) and (ii) of Form N-CSR.
Item 4. Principal Accountant Fees and Services. [Annual Report Only]
Audit Fees
(a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:
2019 $295,802
2020 $304,678
Audit-Related Fees
(b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item and the nature of the services comprising those fees were as follows:
Fees Nature of Services
2019 $105,597 Tax auditing services
2020 $108,763 Tax auditing services
Tax Fees
(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning and the nature of the services comprising the fees were as follows:
Fees Nature of Services
2019 $90,160 Tax services
2020 $92,865 Tax services
All Other Fees
(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item and the nature of the services comprising those fees were as follows:
Fees Nature of Services
2019 $0
2020 $0
(e) (1) Registrant’s audit committee has adopted the following pre-approval policies and procedures for certain services provided by Registrant’s accountants:
Russell Investment Company
Russell Investment Funds
Audit and Non-Audit Services Pre-Approval Policy
Effective Date: August 25, 2020
I. Statement of Purpose.
This Audit and Non-Audit Services Pre-Approval Policy (“Policy”) has been adopted by the joint Audit Committee (the “Audit Committee”) of Russell Investment Company (“RIC”) and Russell Investment Funds (“RIF”) to apply to any and all engagements of the independent auditor with: (1) RIC and RIF, respectively, for audit and permissible non-audit services and (2) the Funds’ adviser or its control affiliates (collectively, “Adviser Entities”) for permissible non-audit services that relate directly to the Funds’ operations or financial reporting (“fund-related services”). The term “Fund” shall collectively refer to each series of RIC and RIF. The term “Investment Adviser” shall refer to the Funds’ adviser, Russell Investment Management, LLC (“RIM”). This Policy does not delegate to management the responsibilities set forth herein for the pre-approval of services performed by the Funds’ independent auditor.
[1]
II. Statement of Principles.
Under the Sarbanes-Oxley Act of 2002 (the “Act”) and rules adopted by the United States Securities and Exchange Commission (the “SEC”), the Audit Committee of the Funds’ Board of Trustees (the “Audit Committee”) is charged with responsibility for the appointment, compensation and oversight of the work of the independent auditor for the Funds. As part of these responsibilities, the Audit Committee is required to pre-approve: (1) the audit services and permissible non-audit services, such as audit-related, tax and other services (“non-audit services”), to be performed by the independent auditor for the Funds, and (2) the services to be performed by the independent auditor for Adviser Entities that relate directly to the operations and financial reporting of the fund, in each case to assure that the independence of the auditor is not in any way compromised or impaired with respect to the Funds. In determining whether an auditor is independent in light of the services it provides to a Fund or Adviser Entity, there are four guiding principles under the Act and relevant SEC rules that must be considered. In general, the independence of the auditor to the Funds could be deemed impaired if the auditor has a relationship or provides a service that:
·
Creates a mutual or conflicting interest between the auditor and the audit client (including the Funds whose financial statements are being audited, as well as affiliates of the Funds covered by relevant SEC rules);·
Results in the auditor acting as management or an employee of the audit client;·
Places the auditor in the position of auditing its own work; or·
Places the accountant in a position of being an advocate for the audit client.Accordingly, it is the Funds’ policy that the independent auditor for the Funds must not be engaged to perform any service that contravenes the rules adopted by the SEC governing auditor independence, including the four guidelines set forth above, or which in any way could be deemed to impair or compromise the independence of the auditor for the Funds. This Policy is designed to accomplish those requirements and will henceforth be applied to all engagements by the Funds of their independent auditor, whether for audit, audit-related, tax, or other non-audit services, as well as to engagements of the auditor by Adviser Entities for fund-related services.
Rules adopted by the SEC establish two distinct approaches to the pre-approval of auditor services by the Audit Committee. The proposed services either may receive general pre-approval through adoption by the Audit Committee of pre-approval policies and procedures, provided the policies and procedures are detailed as to the particular services (e.g., a list of authorized services for the fund, together with a budget of expected costs for those services), the Audit Committee is informed of each service and such policies and procedures do not include delegation of the Audit Committee’s responsibilities to management (“general pre-approval”), or specific pre-approval by the Audit Committee of all services provided to the Funds or fund-related services provided to Adviser Entities on a case-by-case basis (“specific pre-approval”).
The Funds’ Audit Committee believes that the combination of these two approaches reflected in this Policy will result in an effective and efficient procedure for the pre-approval of permissible services performed by the Funds’ independent auditor. The Funds’ Audit and Non-Audit Pre-Approved Services Schedule lists the audit, audit-related, tax and other services (including fund-related services) that have the general pre-approval of the Audit Committee. As set forth in this Policy, unless a particular service has received general pre-approval, those services will require specific pre-approval by the Audit Committee before any such services can be provided by the independent auditor. Any proposed service to the Funds or Adviser Entities that exceeds the pre-approved budget for those services will also require specific pre-approval by the appropriate Audit Committee.
[2]
In assessing whether a particular audit or non-audit service should be approved, the Audit Committee will take into account the ratio between the total amounts paid for audit, audit-related, tax and other services, based on historical patterns, with a view toward assuring that the level of fees paid for non-audit services as they relate to the fees paid for audit services does not compromise or impair the independence of the auditor. The Audit Committee will review the list of general pre-approved services, including the pre-approved budget for those services, at least annually and more frequently if deemed appropriate by the Audit Committee, and may implement changes thereto from time to time.
III. Delegation.
As provided in the Act and in the SEC’s rules, the Audit Committee from time to time may delegate either general or specific pre-approval authority to one or more of its members. Any member to whom such authority is delegated must report any pre-approval decisions to the Audit Committee at its next scheduled meeting.
IV. Audit Services.
The annual audit services engagement terms and fees for the independent auditor for the Funds require specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the independent auditor in order to be able to form an opinion on the financial statements for the Funds for that year. These other procedures include reviews of information systems, procedural reviews and testing performed in order to understand and rely on the Funds’ systems of internal control, and consultations relating to the audit. Audit services also include the attestation engagement for the independent auditor’s report on the report from management on financial reporting internal controls. The Audit Committee will review the audit services engagement as necessary or appropriate in the sole judgment of the Audit Committee.
In addition to the pre-approval by the Audit Committee of the annual engagement of the independent auditor to perform audit services described above, the Audit Committee may grant general pre-approval to other audit services, which are those services that only the independent auditor reasonably can provide. These services are generally related to the issuance of an audit opinion, and may include statutory audits and services associated with the Funds’ SEC registration statement on Form N-1A, periodic reports and documents filed with or information requested by the SEC or other regulatory or self-regulatory organizations, or other documents issued in connection with the Funds’ securities offerings.
The audit services engagement terms and fees for the independent auditor for the Funds, as described above, must be specifically pre-approved by the Audit Committee or its delegate on an annual basis. The Audit Committee has pre-approved the other audit services set forth in Schedule A of the Audit and Non-Audit Pre-Approved Services Schedule. All other audit services not listed in Schedule A of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by the Audit Committee or its delegate.
V. Audit-Related Services.
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the financial statements for the Funds, or the separate financial statements for a series of the Funds that are traditionally performed by the independent auditor. Because the Audit Committee believes that the provision of audit-related services does not compromise or impair the independence of the auditor and is consistent with the SEC’s rules on auditor independence, the Audit Committee may grant pre-approval to audit related services. “Audit-related services” include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services;” assistance with understanding and implementing new accounting and financial reporting or disclosure matters not classified as “audit services;” assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal reporting requirements, including reports required to be filed with the SEC pursuant to applicable requirements.
The Audit Committee has pre-approved the audit-related services set forth in Schedule B of the Audit and Non-Audit Pre-Approved Services Schedule. All other audit-related services not listed in Schedule B of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by the Audit Committee or its delegate.
VI. Tax Services.
The Audit Committee believes that the independent auditor can provide tax services to the Funds, such as tax compliance, tax planning and tax advice, without impairing the auditor’s independence and the SEC has stated that the independent auditor may provide such services. Consequently, the Audit Committee believes that it may grant general pre-approval to those tax services that have historically been provided by the auditor, that the Audit Committee has reviewed and believes would not impair the independence of the auditor, and that are consistent with the SEC’s rules on auditor independence. However, the Audit Committee will not permit the retention of the independent auditor to provide tax advice in connection with any transaction recommended by the independent auditor, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported by the United States Internal Revenue Code and related regulations or the applicable tax statutes and regulations that apply to the Funds’ investments outside the United States. The Audit Committee will consult with the Treasurer of the Funds or outside counsel to determine that the Funds’ tax planning and reporting positions are consistent with this policy.
The Audit Committee has pre-approved the tax services set forth in Schedule C of the Audit and Non-Audit Pre-Approved Services Schedule. All other tax services not listed in Schedule C of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by the Audit Committee or its delegate.
VII. All Other Services.
The Audit Committee believes, based on the SEC’s rules prohibiting the independent auditor from providing specific non-audit services, that other types of non-audit services are permitted. Accordingly, the Audit Committee believes that it may grant general pre-approval to those permissible non-audit services classified as “all other” services that the Audit Committee believes are routine and recurring services, would not impair or compromise the independence of the auditor and are consistent with the SEC’s rules on auditor independence.
The Audit Committee has pre-approved the permissible “all other services” set forth in Schedule D of the Audit and Non-Audit Pre-Approved Services Schedule. Permissible “all other services” not listed in Schedule D of the Audit and Non-Audit Pre-Approved Services Schedule must be specifically pre-approved by the Audit Committee or its delegate.
A list of the SEC’s prohibited non-audit services are as follows:
- Bookkeeping or other services relating to the accounting records or financial statements of the Funds
- Financial information system design and implementation
- Appraisal or valuation services, fairness opinions or contribution-in-kind reports
- Actuarial services
- Internal audit outsourcing services
- Management functions
- Human resources services
- Broker-dealer, investment adviser or investment banking services
- Legal services unrelated to the audit
- Expert services unrelated to the audit
The SEC’s rules and relevant official interpretations and guidance should be consulted to determine the scope of these prohibited services and the applicability of any exceptions to certain of the prohibitions. Under no circumstance may an executive, manager or associate of the Funds, the Investment Adviser or an Adviser Entity authorize the independent auditor for the Funds to provide prohibited non-audit services.
VIII. De Minimis Waiver.
In accordance with the Act and SEC regulations, notwithstanding anything in this Policy to the contrary, the pre-approval requirements of this Policy are waived with respect to the provision of non-audit services that are permissible for an independent auditor to perform, provided:
(a) The aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by RIC or RIF, as applicable, to the independent auditor during the fiscal year in which the services were provided;
(b) Such services were not recognized by the Funds at the time of the engagement to be non-audit services requiring pre-approval by the Audit Committee or its delegate; and
(c) Such services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee or its delegate prior to the completion of the audit, pursuant to the pre-approval provisions of this Policy.
With respect to the provision of fund-related services to Adviser Entities, the aggregate amount of services provided must constitute no more than five percent of the total amount of fees paid by RIC or RIF, as applicable, and the relevant Adviser Entities to the independent auditor during the fiscal year in which the services were provided.
In connection with the approval of any non-audit service pursuant to this de minimis exception, a record shall be made indicating that each of the conditions for this exception has been satisfied.
IX. Pre-Approval Fee Levels or Budgeted Amounts.
Pre-approved fee levels or budgeted amounts for all services to be provided by the independent auditor will be established annually by the Audit Committee and shall be subject to periodic subsequent review during the year if deemed appropriate by the Audit Committee (separate amounts may be specified for the Funds and for other affiliates in the investment company complex subject to pre-approval). Any proposed services exceeding these levels or amounts will require specific pre-approval by the Audit Committee. The Audit Committee will be mindful of the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services. For each fiscal year, the Audit Committee may determine the appropriateness of the ratio between the total amount of fees for audit, audit-related, and tax services for the Funds (including any audit-related or tax services fees for affiliates subject to pre-approval), and the total amount of fees for certain permissible non-audit services classified as “all other services” for the Funds (including any such services for affiliates subject to pre-approval by the Audit Committee or its delegate).
X. Procedures.
All requests or applications for services to be provided by the independent auditor that do not require specific pre-approval by the Audit Committee will be submitted to the “RIC & RIF Clearance Committee” (the “Clearance Committee”) (which shall be comprised of not less than three members, including the Treasurer of the Funds who shall serve as its Chairperson) and must include a detailed description of the services to be rendered and the estimated costs of those services. The Clearance Committee will determine whether such services are included within the list of services that have received general pre-approval by the Audit Committee. The Audit Committee will be informed not less frequently than quarterly by the Chairperson of the Clearance Committee of any such services rendered by the independent auditor for the Funds and the fees paid to the independent auditors for such services.
Requests or applications to provide services that require specific pre-approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Clearance Committee and must include a joint certification by the engagement partner of the independent auditor and the Chairperson of the Clearance Committee that, in their view, the request or application does not involve a prohibited non-audit service and is consistent with the SEC’s rules governing auditor independence.
Russell Investments’ associates and the officers of RIC and RIF will report to the Chairman of the Audit Committee any breach of this Policy that comes to the attention of the Internal Audit Department or an officer of RIC or RIF.
XI. Additional Requirements.
The Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work performed by the independent auditor and to assure the independent auditor’s continuing independence from the Funds and their affiliates. Such efforts will include, but not be limited to, reviewing a written annual statement from the independent auditor delineating all relationships between the independent auditor and RIC, RIF, RIM and their subsidiaries and affiliates (including persons in financial reporting oversight roles) that may reasonably be thought to bear on the auditor’s independence, consistent with Public Company Accounting Oversight Board Rule 3526, and discussing with the independent auditor its methods and procedures for ensuring its independence.
(e) (2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X is as follows:
Audit Fees 0%
Audit-Related Fees 0%
Tax Fees 0%
All Other Fees 0%
(f) For services, 50 percent or more of which were pre-approved, the percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.
(g) The aggregate non-audit fees billed by registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were as follows:
2019 $0
2020 $0
(h) The registrant’s audit committee of the board of trustees has considered whether the provision of nonaudit services that were rendered to the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants. [Not Applicable]
Item 6. [Schedules of Investments are included as part of the Report to Shareholders filed under Item 1 of this form]
Items 7-9. [Not Applicable]
Item 10. Submission of Matters to a Vote of Security Holders
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures
(a) Registrant's principal executive officer and principal financial officer have concluded that Registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of these controls and procedures as of a date within 90 days of the date this report is filed with the Securities and Exchange Commission.
(b) There were no significant changes in Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected or is likely to materially affect Registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies [Not Applicable]
Item 13. Exhibit List
(a) Code of Ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as ex_codeofethics
(b) Certification for principal executive officer of Registrant as required by Rule 30a-2(a) under the Act and certification for principal financial officer of Registrant as required by Rule 30a-2(a) under the Act. ex99_cert
(c)
Certification for principal executive officer and principal financial officer of Registrant as required by Rule 30a-2(b) under the Act
. ex99_906certSIGNATURES
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: February 16, 2021
[1]