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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05371
Russell Investment Funds
(Exact name of registrant as specified in charter)
1301 2nd Avenue 18th Floor, Seattle Washington 98101
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Mary Beth R. Albaneze, Secretary and Chief Legal Officer
Russell Investment Funds
1301 2nd Avenue
18th Floor
Seattle, Washington 98101
206-505-4846
______________________________________________
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-787-7354
Date of fiscal year end: December 31
Date of reporting period: January 1, 2021 to June 30, 2021
Item 1. Reports to Stockholders
2021
SEMI-ANNUAL
REPORT
Russell
Investment
Funds
JUNE
30,
2021
FUND
U.S.
Strategic
Equity
Fund
U.S.
Small
Cap
Equity
Fund
International
Developed
Markets
Fund
Strategic
Bond
Fund
Global
Real
Estate
Securities
Fund
Beginning
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
paper
copies
of
the
Funds’
annual
and
semi-annual
shareholder
reports
like
this
one
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
supported
by
your
financial
professional
or
variable
annuity
provider,
you
may
elect
to
receive
shareholder
reports
and
other
Fund
communications
electronically.
Please
contact
your
financial
professional
or
variable
annuity
provider
for
more
information.
You
may
elect
to
receive
all
future
shareholder
reports
in
paper
free
of
charge.
Please
contact
your
financial
professional
or
variable
annuity
provider
to
inform
them
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports.
Your
election
to
receive
reports
in
paper
will
apply
to
all
Russell
Investment
Funds
and
other
funds
you
hold
with
your
financial
professional
or
variable
annuity
provider.
Russell
Investment
Funds
Russell
Investment
Funds
is
a
series
investment
company
with
nine
different
investment
portfolios
referred
to
as
Funds.
These
financial
statements
report
on
five
of
these
Funds.
Page
U.S.
Strategic
Equity
Fund
3
U.S.
Small
Cap
Equity
Fund
19
International
Developed
Markets
Fund
45
Strategic
Bond
Fund
69
Global
Real
Estate
Securities
Fund
117
Notes
to
Schedules
of
Investments
133
Notes
to
Financial
Highlights
135
Notes
to
Financial
Statements
136
Affiliated
Brokerage
Transactions
156
Basis
for
Approval
of
Investment
Advisory
Agreement
157
Liquidity
Risk
Management
Program
167
Shareholder
Requests
for
Additional
Information
168
Disclosure
of
Information
about
Fund
Trustees
and
Officers
169
Adviser,
Money
Managers
and
Service
Providers
172
Russell
Investment
Funds
Semi-annual
Report
June
30,
2021
(Unaudited)
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,
Russell
Investments’
management
and
Hamilton
Lane
Incorporated.
Fund
objectives,
risks,
charges
and
expenses
should
be
carefully
considered
before
in-
vesting.
A
prospectus
containing
this
and
other
important
information
must
precede
or
accompany
this
material.
Please
read
the
prospectus
carefully
before
investing.
Securities
distributed
through
Russell
Investments
Financial
Services,
LLC,
member
FINRA
and
part
of
Russell
Investments.
Performance
quoted
represents
past
performance
and
does
not
guarantee
future
results.
The
investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
U.S.
Strategic
Equity
Fund
3
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2021
$
1,135
.10
$
1,020
.68
Expenses
Paid
During
Period*
$
4
.39
$
4
.16
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.83%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
4
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
95.7%
Consumer
Discretionary
-
14.1%
Advance
Auto
Parts,
Inc.
2,043
419
Amazon.com,
Inc.(Æ)
5,480
18,851
Amerco
,
Inc.
627
370
AutoNation,
Inc.(Æ)
1,964
186
Best
Buy
Co.,
Inc.
5,999
690
BorgWarner,
Inc.
1,264
61
Brunswick
Corp.
2,105
210
CarMax,
Inc.(Æ)
1,501
194
Charter
Communications,
Inc.
Class
A(Æ)
11,943
8,616
Comcast
Corp.
Class
A
32,723
1,866
Costco
Wholesale
Corp.
3,358
1,329
Dick's
Sporting
Goods,
Inc.
1,407
141
Dollar
General
Corp.
3,100
671
DR
Horton,
Inc.
21,489
1,942
eBay,
Inc.
9,193
645
Floor
&
Decor
Holdings,
Inc.
Class
A(Æ)
2,227
235
Foot
Locker,
Inc.
2,627
162
Ford
Motor
Credit
Co.
LLC(Æ)
55,821
830
Gap,
Inc.
(The)
10,071
339
Garmin,
Ltd.
2,775
401
General
Motors
Co.(Æ)
103,830
6,144
Gentex
Corp.
803
27
Genuine
Parts
Co.
3,441
435
Graham
Holdings
Co.
Class
B
356
226
Grand
Canyon
Education,
Inc.(Æ)
1,590
143
Home
Depot,
Inc.
(The)
5,172
1,649
Kohl's
Corp.
4,484
247
Lear
Corp.
347
61
Lennar
Corp.
Class
A
5,282
525
Liberty
SiriusXM
Group
Class
C(Æ)
6,835
317
LKQ
Corp.(Æ)
14,272
702
Lowe's
Cos.,
Inc.
3,186
618
Lululemon
Athletica
,
Inc.(Æ)
744
272
McDonald's
Corp.
569
131
Mohawk
Industries,
Inc.(Æ)
1,033
199
Netflix,
Inc.(Æ)
10,481
5,536
Nike,
Inc.
Class
B
48,839
7,545
NVR,
Inc.(Æ)
70
348
Ollie's
Bargain
Outlet
Holdings,
Inc.(Æ)
2,419
204
Omnicom
Group,
Inc.
26,325
2,106
O'Reilly
Automotive,
Inc.(Æ)
525
297
Penske
Automotive
Group,
Inc.
3,280
248
Polaris,
Inc.
3,134
429
PulteGroup,
Inc.
58,348
3,184
Ross
Stores,
Inc.
4,099
508
Starbucks
Corp.
35,793
4,002
Target
Corp.
4,997
1,208
Tesla,
Inc.(Æ)
3,236
2,200
Thor
Industries,
Inc.
20,108
2,272
TJX
Cos.,
Inc.
(The)
5,401
364
Tractor
Supply
Co.
2,270
422
Ulta
Beauty,
Inc.(Æ)
6,068
2,098
ViacomCBS
,
Inc.
Class
B
4,924
223
Walmart,
Inc.
10,391
1,465
Walt
Disney
Co.
(The)(Æ)
8,880
1,561
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Whirlpool
Corp.
908
198
Williams-Sonoma,
Inc.
2,717
434
Yum
China
Holdings,
Inc.
3,171
210
86,916
Consumer
Staples
-
4.9%
Altria
Group,
Inc.
11,685
557
Archer-Daniels-Midland
Co.
8,634
523
Casey's
General
Stores,
Inc.
582
113
Church
&
Dwight
Co.,
Inc.
4,932
420
Clorox
Co.
(The)
2,974
535
Coca-Cola
Co.
(The)
18,637
1,008
Colgate-Palmolive
Co.
10,610
863
CVS
Health
Corp.
59,726
4,985
Estee
Lauder
Cos.,
Inc.
(The)
Class
A
1,424
453
General
Mills,
Inc.
6,816
415
Hormel
Foods
Corp.
1,723
82
Ingredion,
Inc.
32,693
2,959
JM
Smucker
Co.
(The)
3,096
401
Kimberly-Clark
Corp.
5,168
691
Kraft
Heinz
Foods
Co.
9,385
383
Kroger
Co.
(The)
99,006
3,794
Molson
Coors
Beverage
Co.
Class
B
31,161
1,673
Mondelez
International,
Inc.
Class
A
8,443
527
Monster
Beverage
Corp.(Æ)
2,598
237
PepsiCo,
Inc.
7,106
1,053
Philip
Morris
International,
Inc.
15,479
1,534
Procter
&
Gamble
Co.
(The)
18,919
2,553
Tyson
Foods,
Inc.
Class
A
48,890
3,606
US
Foods
Holding
Corp.(Æ)
5,544
213
Walgreens
Boots
Alliance,
Inc.
13,629
717
30,295
Energy
-
2.3%
BP
PLC
-
ADR
95,162
2,514
Canadian
Natural
Resources,
Ltd.
90,764
3,293
Chevron
Corp.
28,478
2,983
ConocoPhillips
Co.
25,859
1,575
Exxon
Mobil
Corp.
23,430
1,478
Kinder
Morgan,
Inc.
21,131
385
Magna
International,
Inc.
Class
A
19,413
1,798
ONEOK,
Inc.
4,077
227
14,253
Financial
Services
-
19.0%
AerCap
Holdings,
Ltd.
/
AerCap
Global
Aviation
Trust(Æ)
41,635
2,132
Aflac,
Inc.
9,823
527
Allstate
Corp.
(The)
4,199
548
American
Express
Co.
1,079
178
American
International
Group,
Inc.
3,987
190
American
Tower
Corp.(ö)
1,160
313
Annaly
Capital
Management,
Inc.(ö)
198,357
1,761
Banco
Santander
SA
-
ADR(Æ)(Ñ)
463,712
1,813
Bank
of
America
Corp.
126,928
5,233
Bank
of
New
York
Mellon
Corp.
(The)
5,310
272
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
5
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Berkshire
Hathaway,
Inc.
Class
B(Æ)
25,419
7,064
BlackRock,
Inc.
Class
A
279
244
Capital
One
Financial
Corp.
2,570
398
Cboe
Global
Markets,
Inc.
503
60
CBRE
Group,
Inc.
Class
A(Æ)
6,371
546
Charles
Schwab
Corp.
(The)
4,725
344
Chubb,
Ltd.
3,410
542
Citigroup,
Inc.
134,139
9,490
Citizens
Financial
Group,
Inc.
58,988
2,706
Comerica,
Inc.
31,223
2,227
Crown
Castle
International
Corp.(ö)
1,803
352
Discover
Financial
Services
2,083
246
Equinix
,
Inc.(Æ)(ö)
144
116
Equity
Commonwealth(ö)
66,021
1,730
Essent
Group,
Ltd.
28,345
1,274
Everest
Re
Group,
Ltd.
130
33
Fifth
Third
Bancorp
11,295
432
First
Republic
Bank
1,072
201
Global
Payments,
Inc.
115
22
Goldman
Sachs
Group,
Inc.
(The)
3,247
1,232
Hartford
Financial
Services
Group,
Inc.
3,157
196
JPMorgan
Chase
&
Co.
43,463
6,760
KeyCorp
9,178
190
KKR
&
Co.,
Inc.
Class
A
134,438
7,964
M&T
Bank
Corp.
1,944
282
MasterCard,
Inc.
Class
A
25,041
9,142
Merck
&
Co.,
Inc.
13,415
1,043
MetLife,
Inc.
4,703
281
Morgan
Stanley
36,401
3,338
New
York
Community
Bancorp,
Inc.
154,281
1,700
Northern
Trust
Corp.
3,311
383
PayPal
Holdings,
Inc.(Æ)
34,535
10,066
People's
United
Financial,
Inc.
3,680
63
PNC
Financial
Services
Group,
Inc.
(The)
5,737
1,094
Popular,
Inc.
29,501
2,214
Progressive
Corp.
(The)
3,213
316
Prudential
Financial,
Inc.
2,506
257
Raymond
James
Financial,
Inc.
1,839
239
Regions
Financial
Corp.
14,319
289
Reinsurance
Group
of
America,
Inc.
Class
A
1,509
172
RenaissanceRe
Holdings,
Ltd.
5
1
Ryman
Hospitality
Properties,
Inc.(Æ)(ö)
15,677
1,238
SLM
Corp.
119,264
2,497
State
Street
Corp.
2,147
177
Synchrony
Financial
8,472
411
Travelers
Cos.,
Inc.
(The)
3,142
470
Truist
Financial
Corp.
17,708
983
Two
Harbors
Investment
Corp.(Ñ)(ö)
286,584
2,167
US
Bancorp
15,606
889
Visa,
Inc.
Class
A
52,772
12,340
Wells
Fargo
&
Co.
174,808
7,917
117,305
Health
Care
-
14.3%
10x
Genomics,
Inc.
Class
A(Æ)
25,355
4,965
Abbott
Laboratories
9,989
1,158
AbbVie,
Inc.
28,865
3,251
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Abiomed
,
Inc.(Æ)
488
152
Agilent
Technologies,
Inc.
4,291
634
Alexion
Pharmaceuticals,
Inc.(Æ)
11,180
2,054
Align
Technology,
Inc.(Æ)
9,312
5,690
Alkermes
PLC(Æ)
14,653
359
Alnylam
Pharmaceuticals,
Inc.(Æ)
2,589
439
Amgen,
Inc.
3,268
797
Anthem,
Inc.(Æ)
1,207
461
AstraZeneca
PLC
-
ADR(Ñ)
38,467
2,304
Baxter
International,
Inc.
4,144
334
Becton
Dickinson
and
Co.
2,678
651
Biogen,
Inc.(Æ)
2,834
981
BioMarin
Pharmaceutical,
Inc.(Æ)
1,022
85
Boston
Scientific
Corp.(Æ)
10,245
438
Bristol-Myers
Squibb
Co.
44,952
3,004
Centene
Corp.(Æ)
7,579
553
Cerner
Corp.
6,807
532
Cigna
Corp.
2,621
621
Cooper
Cos.,
Inc.
(The)
872
346
DexCom
,
Inc.(Æ)
948
405
Edwards
Lifesciences
Corp.(Æ)
75,117
7,780
Eli
Lilly
&
Co.
4,594
1,054
Exact
Sciences
Corp.(Æ)
1,507
187
Exelixis
,
Inc.(Æ)
15,276
278
Gilead
Sciences,
Inc.
7,226
498
GlaxoSmithKline
PLC
-
ADR
57,381
2,285
Haemonetics
Corp.(Æ)
21,166
1,411
HCA
Healthcare,
Inc.
921
190
Hologic
,
Inc.(Æ)
2,266
151
Humana,
Inc.
425
188
IDEXX
Laboratories,
Inc.(Æ)
459
290
Illumina,
Inc.(Æ)
466
221
Incyte
Corp.(Æ)
5,060
426
Insulet
Corp.(Æ)
433
119
Integra
LifeSciences
Holdings
Corp.(Æ)
1,183
81
Intra-Cellular
Therapies,
Inc.
Class
A(Æ)
28,233
1,152
Intuitive
Surgical,
Inc.(Æ)
7,994
7,352
Jazz
Pharmaceuticals
PLC(Æ)
12,040
2,139
Johnson
&
Johnson
36,012
5,933
Laboratory
Corp.
of
America
Holdings(Æ)
2,367
653
Masimo
Corp.(Æ)
619
150
Medtronic
PLC
21,789
2,705
Moderna
,
Inc.(Æ)
3,263
767
Neurocrine
Biosciences,
Inc.(Æ)
831
81
Organon
&
Co.(Æ)
1,341
41
Pfizer,
Inc.
82,058
3,213
Quest
Diagnostics,
Inc.
1,359
179
Regeneron
Pharmaceuticals,
Inc.(Æ)
844
471
ResMed
,
Inc.
2,615
645
Sage
Therapeutics,
Inc.(Æ)
2,682
152
Seagen
,
Inc.(Æ)
1,169
185
STERIS
PLC
1,342
277
Stryker
Corp.
3,089
802
Teleflex,
Inc.
438
176
Thermo
Fisher
Scientific,
Inc.
2,568
1,295
United
Therapeutics
Corp.(Æ)
2,788
500
UnitedHealth
Group,
Inc.
6,009
2,406
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
6
U.S.
Strategic
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Veeva
Systems,
Inc.
Class
A(Æ)
18,472
5,744
Vertex
Pharmaceuticals,
Inc.(Æ)
2,854
575
Viatris
,
Inc.
Class
W
125,645
1,795
West
Pharmaceutical
Services,
Inc.
2,073
744
Zimmer
Biomet
Holdings,
Inc.
9,711
1,562
Zoetis,
Inc.
Class
A
4,914
916
87,983
Materials
and
Processing
-
3.6%
Air
Products
&
Chemicals,
Inc.
144
41
Alcoa
Corp.(Æ)
48,262
1,778
Ball
Corp.
4,120
334
Carrier
Global
Corp.
5,632
274
Copart
,
Inc.(Æ)
1,742
230
Crown
Holdings,
Inc.
21,301
2,177
Dow,
Inc.
4,652
294
DowDuPont
,
Inc.
42,546
3,293
Eastman
Chemical
Co.
14,979
1,749
Ecolab,
Inc.
87
18
Fastenal
Co.
4,175
217
Freeport-McMoRan,
Inc.
8,142
302
Huntsman
Corp.
107,017
2,838
International
Paper
Co.
9,622
590
Lennox
International,
Inc.
546
192
Linde
PLC(Æ)
2,546
736
LyondellBasell
Industries
NV
Class
A
2,417
249
Newmont
Corp.
70,376
4,460
Nucor
Corp.
6,306
605
Owens
Corning
526
51
Reliance
Steel
&
Aluminum
Co.
434
65
Southern
Copper
Corp.
9,944
640
Steel
Dynamics,
Inc.
63
4
Trane
Technologies
PLC
4,386
808
21,945
Producer
Durables
-
5.2%
3M
Co.
1,939
385
Ametek
,
Inc.
487
65
Aptiv
PLC(Æ)
1,648
259
Booz
Allen
Hamilton
Holding
Corp.
Class
A
1,562
133
Carlisle
Cos.,
Inc.
1,102
211
CH
Robinson
Worldwide,
Inc.
3,238
303
Cintas
Corp.
1,104
422
CoStar
Group,
Inc.(Æ)
6,720
557
CSX
Corp.
9,234
296
Cummins,
Inc.
3,179
775
Danaher
Corp.
4,098
1,100
Deere
&
Co.
930
328
Eaton
Corp.
PLC
2,329
345
Emerson
Electric
Co.
3,665
353
Expeditors
International
of
Washington,
Inc.
1,184
150
FedEx
Corp.
10,789
3,219
General
Dynamics
Corp.
478
90
Honeywell
International,
Inc.
4,718
1,035
IDEX
Corp.
561
123
IHS
Markit
,
Ltd.(Æ)
3,232
364
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Illinois
Tool
Works,
Inc.
1,625
363
Johnson
Controls
International
PLC(Æ)
13,670
938
Kansas
City
Southern
1,960
555
Keysight
Technologies,
Inc.(Æ)
918
142
Lockheed
Martin
Corp.
1,215
460
Norfolk
Southern
Corp.
744
197
Northrop
Grumman
Corp.
932
339
Old
Dominion
Freight
Line,
Inc.
548
139
Otis
Worldwide
Corp.
2,816
230
PACCAR
Financial
Corp.
5,469
488
Paychex,
Inc.
971
104
Quanta
Services,
Inc.
6,202
562
Raytheon
Co.(Æ)
7,864
671
Republic
Services,
Inc.
Class
A
3,229
355
Roper
Technologies,
Inc.
954
449
S&P
Global,
Inc.
188
77
Snap-on,
Inc.
935
209
Stanley
Black
&
Decker,
Inc.
719
147
Textron,
Inc.
30,181
2,076
Toro
Co.
(The)
2,847
313
TreeHouse
Foods,
Inc.(Æ)
44,027
1,960
Union
Pacific
Corp.
2,511
552
United
Parcel
Service,
Inc.
Class
B
6,663
1,386
United
Rentals,
Inc.(Æ)
1,238
395
Verisk
Analytics,
Inc.
Class
A
2,323
406
Vontier
Corp.
82,467
2,687
Waste
Management,
Inc.
36,814
5,158
Waters
Corp.(Æ)
348
120
Westinghouse
Air
Brake
Technologies
Corp.
1,530
126
XPO
Logistics,
Inc.(Æ)
1,342
188
32,305
Technology
-
28.3%
Accenture
PLC
Class
A
3,090
911
Activision
Blizzard,
Inc.
2,116
202
Adobe,
Inc.(Æ)
9,991
5,851
Advanced
Micro
Devices,
Inc.(Æ)
8,992
845
Airbnb,
Inc.
Class
A(Æ)
20,609
3,156
Alphabet,
Inc.
Class
A(Æ)
2,354
5,748
Alphabet,
Inc.
Class
C(Æ)
1,315
3,296
Amphenol
Corp.
Class
A
4,565
312
Analog
Devices,
Inc.
5,105
879
Ansys
,
Inc.(Æ)
36
12
Apple,
Inc.
89,850
12,306
Applied
Materials,
Inc.
6,816
971
Arista
Networks,
Inc.(Æ)
6,319
2,289
Automatic
Data
Processing,
Inc.
1,376
273
Broadcom,
Inc.
2,554
1,218
CACI
International,
Inc.
Class
A(Æ)
356
91
Cadence
Design
Systems,
Inc.(Æ)
3,050
417
CDW
Corp.
717
125
Cisco
Systems,
Inc.
26,156
1,386
Cognizant
Technology
Solutions
Corp.
Class
A
16,822
1,165
Corning,
Inc.
7,541
308
Corteva
,
Inc.
Class
W
70,548
3,129
Coupa
Software,
Inc.(Æ)
16,020
4,199
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
7
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Datadog
,
Inc.
Class
A(Æ)
50,796
5,287
Dell
Technologies,
Inc.
Class
C(Æ)
7,292
727
DXC
Technology
Co.(Æ)
44,986
1,752
Electronic
Arts,
Inc.
923
133
F5
Networks,
Inc.(Æ)
1,997
373
Facebook,
Inc.
Class
A(Æ)
18,293
6,361
Fidelity
National
Information
Services,
Inc.
1,947
276
Fiserv,
Inc.(Æ)
1,506
161
Fortinet,
Inc.(Æ)
1,247
297
Hewlett
Packard
Enterprise
Co.
Class
H
33,432
487
HP,
Inc.(Æ)
25,392
767
Intel
Corp.
31,958
1,794
Intuit,
Inc.
1,557
763
Juniper
Networks,
Inc.
121,577
3,325
KLA
Corp.
2,031
658
Lam
Research
Corp.
1,088
708
Leidos
Holdings,
Inc.
3,168
320
Marvell
Technology
Group,
Ltd.
35,999
2,100
Match
Group,
Inc.(Æ)
43,421
7,002
Maxim
Integrated
Products,
Inc.
4,423
466
Microchip
Technology,
Inc.
3,411
511
Micron
Technology,
Inc.(Æ)
61,400
5,218
Microsoft
Corp.
102,970
27,895
Monolithic
Power
Systems,
Inc.
849
317
Motorola
Solutions,
Inc.
1,828
396
NVIDIA
Corp.
3,997
3,198
ON
Semiconductor
Corp.(Æ)
8,918
341
Oracle
Corp.
9,291
723
Paycom
Software,
Inc.(Æ)
13,598
4,942
Qorvo
,
Inc.(Æ)
1,232
241
QUALCOMM,
Inc.
6,909
988
Salesforce.com,
Inc.(Æ)
4,323
1,056
ServiceNow
,
Inc.(Æ)
13,438
7,385
Skyworks
Solutions,
Inc.
2,960
568
Snowflake,
Inc.
Class
A(Æ)
24,539
5,934
Synopsys,
Inc.(Æ)
892
246
Take-Two
Interactive
Software,
Inc.(Æ)
2,156
382
Teradyne,
Inc.
4,579
613
Texas
Instruments,
Inc.
7,081
1,362
Twilio
,
Inc.
Class
A(Æ)
24,322
9,587
Uber
Technologies,
Inc.(Æ)
196,551
9,851
Wix.com,
Ltd.(Æ)
15,457
4,487
Workday,
Inc.
Class
A(Æ)
542
129
Xilinx,
Inc.
1,779
257
Zoom
Video
Communications,
Inc.
Class
A(Æ)
11,996
4,643
Zynga,
Inc.
Class
A(Æ)
38,500
409
174,525
Utilities
-
4.0%
American
Electric
Power
Co.,
Inc.
1,296
110
AT&T,
Inc.
124,910
3,595
Avangrid
,
Inc.
4,903
252
Cheniere
Energy,
Inc.(Æ)
3,812
331
Consolidated
Edison
Co.,
Inc.
4,123
296
Dominion
Energy,
Inc.
1,134
83
DTE
Energy
Co.
1,968
255
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Duke
Energy
Corp.
6,335
625
Evergy
,
Inc.
5,903
357
Eversource
Energy(Æ)
3,433
275
Exelon
Corp.
11,311
501
FirstEnergy
Corp.
66,795
2,485
International
Business
Machines
Corp.
4,227
620
National
Fuel
Gas
Co.
2,504
131
NextEra
Energy,
Inc.
6,860
503
NiSource,
Inc.
96,700
2,369
Pinnacle
West
Capital
Corp.
1,968
161
PPL
Corp.
76,360
2,136
Sempra
Energy
1,950
258
Southern
Co.
(The)
4,650
281
T-Mobile
USA,
Inc.(Æ)
37,565
5,441
UGI
Corp.
27,451
1,271
Verizon
Communications,
Inc.
31,995
1,793
WEC
Energy
Group,
Inc.(Æ)
4,835
430
24,559
Total
Common
Stocks
(cost
$386,799)
590,086
Short-Term
Investments
-
4.2%
U.S.
Cash
Management
Fund(@)
25,865,272
(∞)
25,860
Total
Short-Term
Investments
(cost
$25,860)
25,860
Other
Securities
-
0.7%
U.S.
Cash
Collateral
Fund(@)(×)
4,342,075
(∞)
4,342
Total
Other
Securities
(cost
$4,342)
4,342
Total
Investments
-
100.6%
(identified
cost
$417,001)
620,288
Other
Assets
and
Liabilities,
Net
-
(0.6)%
(3,911)
Net
Assets
-
100.0%
616,377
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
8
U.S.
Strategic
Equity
Fund
Futures
Contracts
Amounts
in
thousands
(except
contract
amounts
)
Number
of
Contracts
Notional
Amount
Expiration
Date
Value
and
Unrealized
Appreciation
(Depreciation)
$
Long
Positions
S&P
500
E-Mini
Index
Futures
68
USD
14,581
09/21
166
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
166
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
$
86,916
$
—
$
—
$
—
$
86,916
14.1
Consumer
Staples
30,295
—
—
—
30,295
4.9
Energy
14,253
—
—
—
14,253
2.3
Financial
Services
117,305
—
—
—
117,305
19.0
Health
Care
87,983
—
—
—
87,983
14.3
Materials
and
Processing
21,945
—
—
—
21,945
3.6
Producer
Durables
32,305
—
—
—
32,305
5.2
Technology
174,525
—
—
—
174,525
28.3
Utilities
24,559
—
—
—
24,559
4.0
Short-Term
Investments
—
—
—
25,860
25,860
4.2
Other
Securities
—
—
—
4,342
4,342
0.7
Total
Investments
590,086
—
—
30,202
620,288
100.6
Other
Assets
and
Liabilities,
Net
(0.6)
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
166
—
—
—
166
—
*
Total
Other
Financial
Instruments
**
$
166
$
—
$
—
$
—
$
166
*
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
June
30,
2021,
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
9
ts
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Variation
margin
on
futures
contracts*
$
166
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
1
,
209
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
36
*
Includes
cumulative
appreciation/depreciation
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
U.S.
Strategic
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
$
4,125
$
—
$
4,125
Total
Financial
and
Derivative
Assets
4,125
—
4,125
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
4,125
$
—
$
4,125
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
$
713
$
—
$
713
$
—
Goldman
Sachs
359
—
359
—
HSBC
3,053
—
3,053
—
Total
$
4,125
$
—
$
4,125
$
—
*
Fair
value
of
securities
on
loan
as
reported
in
the
footnotes
to
the
Statement
of
Assets
and
Liabilities.
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
11
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
417,001
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
620,288
Receivables:
Dividends
and
interest
.......................................................................................................................................................
474
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Fund
shares
sold
................................................................................................................................................................
25
From
broker
(a)
...................................................................................................................................................................
672
Variation
margin
on
futures
contracts
.................................................................................................................................
166
Prepaid
expenses
...........................................................................................................................................................................
3
Total
assets
.................................................................................................................................................
621,629
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
391
Accrued
fees
to
affiliates
....................................................................................................................................................
393
Other
accrued
expenses
.....................................................................................................................................................
126
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
4,342
Total
liabilities
.............................................................................................................................................
5,252
Net
Assets
............................................................................................................................................................
$
616,377
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
12
U.S.
Strategic
Equity
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
243,195
Shares
of
beneficial
interest
...........................................................................................................................................................
278
Additional
paid-in
capital
..............................................................................................................................................................
372,904
Net
Assets
............................................................................................................................................................
$
616,377
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
22.16
Net
assets
...............................................................................................................................................................................
$
616,377,338
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
27,813,796
Amounts
in
thousands
(*)
Securities
on
loan
included
in
investments
$
4,125
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
30,202
(a)
Receivable
from
Broker
for
Futures
$
672
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Strategic
Equity
Fund
13
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
3,076
Dividends
from
affiliated
funds
.........................................................................................................................................
6
Securities
lending
income
(net)
.........................................................................................................................................
15
Total
investment
income
...............................................................................................................................................................
3,097
Expenses
Advisory
fees
....................................................................................................................................................................
2,117
Administrative
fees
...........................................................................................................................................................
145
Custodian
fees
...................................................................................................................................................................
32
Transfer
agent
fees
............................................................................................................................................................
13
Professional
fees
...............................................................................................................................................................
50
Trustees’
fees
....................................................................................................................................................................
10
Printing
fees
......................................................................................................................................................................
31
Miscellaneous
...................................................................................................................................................................
8
Total
expenses
...............................................................................................................................................................................
2,406
Net
investment
income
(loss)
........................................................................................................................................................
691
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
44,880
Futures
contracts
..............................................................................................................................................................
1,209
Net
realized
gain
(loss)
..................................................................................................................................................................
46,089
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
27,559
Futures
contracts
..............................................................................................................................................................
36
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
27,595
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
73,684
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
74,375
Russell
Investment
Funds
U.S.
Strategic
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
14
U.S.
Strategic
Equity
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
691
$
2,811
Net
realized
gain
(loss)
......................................................................................................................
46,089
(4,225)
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
27,595
109,826
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
74,375
108,412
Distributions
To
shareholders
.................................................................................................................................
(1,713)
(6,692)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(1,713)
(6,692)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(17,390)
(53,977)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
55,272
47,743
Net
Assets
Beginning
of
period
.................................................................................................................................
561,105
513,362
End
of
period
..........................................................................................................................................
$
616,377
$
561,105
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
964
$
20,715
383
$
5,956
Proceeds
from
reinvestment
of
distributions
83
1,712
430
6,692
Payments
for
shares
redeemed
(1,891)
(39,817)
(4,185)
(66,625)
Total
increase
(decrease)
(844)
$
(17,390)
(3,372)
$
(53,977)
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.
16
U.S.
Strategic
Equity
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2021(1)
19.58
.02
2.62
2.64
(.06)
—
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
17
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.06)
22.16
13.51
616,377
.83
.83
.2
4
22
(.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.
18
U.S.
Strategic
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021
,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
364,634
Administration
fees
24,975
Transfer
agent
fees
2,198
Trustee
fees
1,426
$
393,233
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
U.S.
Cash
Management
Fund
$
17,912
$
69,737
$
61,789
$
—
$
—
$
25,860
$
6
$
—
U.S.
Cash
Collateral
Fund
2,849
36,513
35,020
—
—
4,342
1
—
$
20,761
$
106,250
$
96,809
$
—
$
—
$
30,202
$
7
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
422,147,692
$
200,740,031
$
(2,434,250)
$
198,305,781
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
U.S.
Small
Cap
Equity
Fund
19
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2021
$
1,232
.30
$
1,019
.19
Expenses
Paid
During
Period*
$
6
.25
$
5
.66
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.13%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
20
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
99.5%
Consumer
Discretionary
-
13.7%
1-800-Flowers.com,
Inc.
Class
A(Æ)
11,106
354
Abercrombie
&
Fitch
Co.
Class
A(Æ)
7,594
353
Academy
Sports
and
Outdoors,
Inc.(Æ)
11,425
471
Adtalem
Global
Education,
Inc.(Æ)
4,796
171
AerSale
Corp.(Æ)(Ñ)
12,341
154
Altice
USA,
Inc.
Class
A(Æ)(Û)
878
30
Amerco
,
Inc.(Û)
356
210
American
Axle
&
Manufacturing
Holdings,
Inc.(Æ)
31,866
330
American
Eagle
Outfitters,
Inc.
3,091
116
American
Public
Education,
Inc.(Æ)
9,265
262
America's
Car-Mart,
Inc.(Æ)
6,151
871
Audacy
,
Inc.(Æ)
10,749
46
B.
Riley
Financial,
Inc.
9,950
750
Barnes
&
Noble
Education,
Inc.(Æ)
18,454
133
Bassett
Furniture
Industries,
Inc.
1,011
25
Beazer
Homes
USA,
Inc.(Æ)
4,904
95
BJ's
Restaurants,
Inc.(Æ)
14,776
725
BJ's
Wholesale
Club
Holdings,
Inc.(Æ)
4,665
222
Bluegreen
Vacations
Holding
Corp.(Æ)
1
—
Boot
Barn
Holdings,
Inc.(Æ)
14,761
1,240
Boyd
Gaming
Corp.(Æ)
2,953
182
Brinker
International,
Inc.(Æ)
9,862
610
Buckle,
Inc.
(The)
2,857
142
Cable
One,
Inc.(Ð)(Û)
205
392
Caleres
,
Inc.
23,595
644
Cardlytics,
Inc.(Æ)
4,070
517
Carriage
Services,
Inc.
Class
A
1,324
49
Carrols
Restaurant
Group,
Inc.(Æ)
34,254
206
Carter's,
Inc.
4,652
480
Cavco
Industries,
Inc.(Æ)
1,233
274
Celestica,
Inc.(Æ)
33,221
261
Central
Garden
&
Pet
Co.(Æ)
1,798
95
Central
Garden
&
Pet
Co.
Class
A(Æ)
2,801
135
Century
Casinos,
Inc.(Æ)
44,095
592
Century
Communities,
Inc.
3,626
241
Churchill
Downs,
Inc.
781
155
Citi
Trends,
Inc.(Æ)
1,649
143
Conn's,
Inc.(Æ)
5,975
152
Container
Store
Group,
Inc.
(The)(Æ)(Ð)
5,195
68
Cooper-Standard
Holdings,
Inc.(Æ)
2,498
72
Cracker
Barrel
Old
Country
Store,
Inc.
1,117
166
Crocs,
Inc.(Æ)
2,675
312
Dana
Holding
Corp.(Ð)
7,433
177
Deckers
Outdoor
Corp.(Æ)
580
223
Del
Taco
Restaurants,
Inc.(Æ)
29,363
294
Delta
Apparel,
Inc.(Æ)
7,542
223
Denny's
Corp.(Æ)
7,257
120
Designer
Brands,
Inc.
Class
A(Æ)
18,675
309
Dillard's,
Inc.
Class
A
1,714
310
Drive
Shack,
Inc.(Æ)
25,304
84
Ethan
Allen
Interiors,
Inc.
3,768
104
Everi
Holdings,
Inc.(Æ)
6,198
155
Fiesta
Restaurant
Group,
Inc.(Æ)
9,288
125
First
Cash
Financial
Services,
Inc.
1,700
130
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Foot
Locker,
Inc.
4,432
273
Fossil
Group,
Inc.(Æ)
27,214
389
Franklin
Covey
Co.(Æ)
3,829
124
Genesco,
Inc.(Æ)
12,407
790
GMS,
Inc.(Æ)
4,187
202
Goodyear
Tire
&
Rubber
Co.
(The)(Æ)
24,469
420
GoPro,
Inc.
Class
A(Æ)(Ð)
22,746
265
Gray
Television,
Inc.
13,227
309
Group
1
Automotive,
Inc.
863
133
H&R
Block,
Inc.
18,295
430
HealthStream
,
Inc.(Æ)
2,412
67
Hibbett
Sports,
Inc.
2,581
231
Horizon
Global
Corp.(Æ)
14,614
124
IAC/InterActiveCorp.(Æ)
188
29
iHeartMedia
,
Inc.
Class
A(Æ)
4,454
120
iMedia
Brands,
Inc.(Æ)
16,334
131
International
Game
Technology
PLC(Æ)(Û)
29,049
696
IntriCon
Corp.(Æ)
4,657
105
KB
Home
5,866
239
Kontoor
Brands,
Inc.
9,980
563
Lands'
End,
Inc.(Æ)
4,208
173
Landsea
Homes
Corp.(Æ)
36,632
307
Laureate
Education,
Inc.
Class
A(Æ)
8,726
127
La-Z-Boy,
Inc.
2,597
96
Liberty
TripAdvisor
Holdings,
Inc.
Class
A(Æ)
17,214
70
Lithia
Motors,
Inc.
Class
A
406
140
Lumber
Liquidators
Holdings,
Inc.(Æ)
4,674
99
M/I
Homes,
Inc.(Æ)(Ð)
1,077
63
Madison
Square
Garden
Entertainment
Corp.
(Æ)
4,523
380
Madison
Square
Garden
Sports
Corp.
Class
A(Æ)
1,354
234
Marchex
,
Inc.
Class
B(Æ)
3,599
11
MarineMax
,
Inc.(Æ)
2,855
139
Marriott
Vacations
Worldwide
Corp.(Æ)
1,233
196
MasterCraft
Boat
Holdings,
Inc.(Æ)
6,849
180
Monro
Muffler
Brake,
Inc.
5,618
357
Motorcar
Parts
of
America,
Inc.(Æ)
6,361
143
Movado
Group,
Inc.
8,791
277
Nathan's
Famous,
Inc.
980
70
Noodles
&
Co.
Class
A(Æ)
1,620
20
nVent
Electric
PLC
11,648
364
Overstock.com,
Inc.(Æ)
1,122
103
PARTS
iD
,
Inc.(Æ)
10,798
65
Penn
National
Gaming,
Inc.(Æ)
1,406
108
Perdoceo
Education
Corp.(Æ)(Ð)
4,622
57
PetIQ
,
Inc.(Æ)
8,173
315
Potbelly
Corp.(Æ)
12,057
95
Qurate
Retail,
Inc.
Class
A
29,090
381
Restoration
Hardware(Æ)
123
84
REV
Group,
Inc.
2,850
45
Ruth's
Hospitality
Group,
Inc.(Æ)
2,106
49
Sally
Beauty
Holdings,
Inc.(Æ)
12,019
265
Scholastic
Corp.
9,364
355
Service
Corp.
International(Û)
1,188
64
Shutterstock
,
Inc.
1,088
107
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
21
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Signet
Jewelers,
Ltd.(Û)
3,622
293
Skyline
Champion
Corp.(Æ)
21,361
1,138
SMART
Global
Holdings,
Inc.(Æ)
14,917
711
Sonic
Automotive,
Inc.
Class
A
2,355
105
Stamps.com,
Inc.(Æ)
742
149
Standard
Motor
Products,
Inc.
1,422
62
Stride,
Inc.(Æ)
8,414
270
TEGNA,
Inc.
11,587
218
Tenneco,
Inc.
Class
A(Æ)
14,907
288
Texas
Roadhouse,
Inc.
Class
A
8,703
836
The
Aaron's
Co.,
Inc.
13,756
440
Tilly's,
Inc.
Class
A
11,423
182
Townsquare
Media,
Inc.
Class
A(Æ)
31,748
405
Travelzoo
,
Inc.(Æ)
6,769
100
Universal
Electronics,
Inc.(Æ)
6,687
324
Universal
Technical
Institute,
Inc.(Æ)(Ð)
1,944
13
Vista
Outdoor,
Inc.(Æ)
12,878
596
Visteon
Corp.(Æ)
1,974
239
WideOpenWest
,
Inc.(Æ)
4,921
102
Wingstop
,
Inc.
1,943
306
Wolverine
World
Wide,
Inc.
15,332
516
WW
International,
Inc.(Æ)
6,681
241
Wyndham
Hotels
&
Resorts,
Inc.
12,062
871
YETI
Holdings,
Inc.(Æ)
9,629
883
Zumiez
,
Inc.(Æ)
3,057
150
35,317
Consumer
Staples
-
3.4%
Adecoagro
SA(Æ)
39,730
399
Albertsons
Co.,
Inc.
Class
A(Û)
15,100
297
Alico
,
Inc.
3,695
132
Andersons,
Inc.
(The)
6,976
213
Bunge,
Ltd.(Û)
5,706
446
Coca-Cola
Bottling
Co.(Û)
293
118
elf
Beauty,
Inc.(Æ)
58,748
1,594
Energizer
Holdings,
Inc.
-
GDR(Æ)
6,992
307
Farmer
Brothers
Co.(Æ)
3,774
48
Fresh
Del
Monte
Produce,
Inc.
9,251
304
Freshpet
,
Inc.(Æ)
635
103
Grocery
Outlet
Holding
Corp.(Æ)
19,653
681
Helen
of
Troy,
Ltd.(Æ)
793
181
Herbalife
Nutrition,
Ltd.(Æ)(Û)
4,196
221
Ingles
Markets,
Inc.
Class
A
1,406
82
Ingredion,
Inc.
3,853
349
J&J
Snack
Foods
Corp.
2,360
412
Lancaster
Colony
Corp.
595
115
Lifevantage
Corp.(Æ)
1,696
12
Medifast
,
Inc.
928
263
MGP
Ingredients,
Inc.
824
56
Nomad
Foods,
Ltd.(Æ)
8,459
239
Performance
Food
Group
Co.(Æ)
3,573
173
Pilgrim's
Pride
Corp.(Æ)
4,929
109
Post
Holdings,
Inc.(Æ)(Ð)
891
97
Primo
Water
Corp.
9,627
161
Quanex
Building
Products
Corp.
3,898
97
Rite
Aid
Corp.(Æ)
4,168
68
Sanderson
Farms,
Inc.
3,207
603
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
SpartanNash
Co.
5,973
115
Spectrum
Brands
Holdings,
Inc.(Û)
3,452
294
United
Natural
Foods,
Inc.(Æ)
7,554
279
WD-40
Co.
495
127
Weis
Markets,
Inc.
2,560
132
8,827
Energy
-
3.3%
Antero
Resources
Corp.(Æ)
12,318
185
Arch
Coal,
Inc.(Æ)
4,171
238
Berry
Petroleum
Corp.
1,000
7
ChampionX
Corp.(Æ)
18,889
485
CONSOL
Energy,
Inc.(Æ)
1,000
18
Delek
US
Holdings,
Inc.
32,490
702
Exterran
Corp.(Æ)
2,100
10
Green
Brick
Partners,
Inc.(Æ)
44,174
1,004
Luxfer
Holdings
PLC
-
ADR
14,513
323
Matrix
Service
Co.(Æ)
38,057
400
Nabors
Industries,
Inc.(Æ)
431
49
National
Energy
Services
Reunited
Corp.(Æ)
64,724
922
Natural
Gas
Services
Group,
Inc.(Æ)
13,253
136
Newpark
Resources,
Inc.(Æ)(Ð)
6,784
23
NexTier
Oilfield
Solutions,
Inc.(Æ)
69,440
331
NOW,
Inc.(Æ)
8,512
81
Par
Pacific
Holdings,
Inc.(Æ)(Ð)
5,396
91
Patterson-UTI
Energy,
Inc.
62,332
620
PBF
Energy,
Inc.
Class
A(Æ)(Ð)
10,721
164
Peabody
Energy
Corp.(Æ)(Ð)
12,652
100
REX
American
Resources
Corp.(Æ)(Ð)
595
54
SM
Energy
Co.
24,026
592
Solaris
Oilfield
Infrastructure,
Inc.
Class
A
21,519
210
SunCoke
Energy,
Inc.
8,035
57
Sunrun
,
Inc.(Æ)
2,161
121
Talon
Metals
Corp.(Æ)
183,000
77
Targa
Resources
Corp.(Ð)
9,529
424
TPI
Composites,
Inc.(Æ)
6,370
308
US
Silica
Holdings,
Inc.(Æ)(Ð)
900
10
W&T
Offshore,
Inc.(Æ)
71,022
344
Warrior
Met
Coal,
Inc.
20,621
355
World
Fuel
Services
Corp.
4,518
143
8,584
Financial
Services
-
21.1%
AerCap
Holdings,
Ltd.
/
AerCap
Global
Aviation
Trust(Æ)
6,840
350
Agree
Realty
Corp.(ö)
6,974
492
Alleghany
Corp.(Æ)(Ð)(Û)
588
392
Alliance
Data
Systems
Corp.
3,101
323
Alpine
Income
Property
Trust,
Inc.(ö)
32,361
616
Amalgamated
Financial
Corp.
848
13
Amerant
Bancorp,
Inc.(Æ)
1,127
24
American
Campus
Communities,
Inc.(ö)
5,985
280
American
Equity
Investment
Life
Holding
Co.
7,573
244
Ameris
Bancorp
6,113
310
Apple
Hospitality
REIT,
Inc.(ö)
27,174
415
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
22
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Ares
Commercial
Real
Estate
Corp.(ö)
9,816
144
Argo
Group
International
Holdings,
Ltd.
2,150
111
Armada
Hoffler
Properties,
Inc.(Ð)(ö)
1,841
24
Associated
Banc-Corp.
3,716
76
Assurant,
Inc.(Û)
130
20
Atlantic
Capital
Bancshares,
Inc.(Æ)
10,655
271
Atlantic
Union
Bankshares
Corp.(Æ)
10,041
364
Axis
Capital
Holdings,
Ltd.
9,052
444
Axos
Financial,
Inc.(Æ)
3,338
155
Banc
of
California,
Inc.
70,844
1,242
Bancorp,
Inc.
(The)(Æ)
5,313
122
BancorpSouth
Bank
3,854
109
BankUnited
,
Inc.
4,245
181
Banner
Corp.
7,342
398
Berkshire
Hills
Bancorp,
Inc.
6,287
172
Blackstone
Mortgage
Trust,
Inc.
Class
A(ö)
4,953
158
Blucora
,
Inc.(Æ)
27,976
485
Bridgewater
Bancshares,
Inc.(Æ)
550
9
Brighthouse
Financial,
Inc.(Æ)(Ð)
7,848
357
Brixmor
Property
Group,
Inc.(ö)
23,169
530
Bryn
Mawr
Bank
Corp.
2,355
99
Byline
Bancorp,
Inc.
11,912
270
Cadence
Bancorp
33,398
697
Cambridge
Bancorp
1,019
85
Capital
Bancorp,
Inc.(Æ)
8,467
173
Capital
City
Bank
Group,
Inc.
9,885
255
Capstar
Financial
Holdings,
Inc.
28,569
585
Carter
Bankshares
,
Inc.(Æ)
12,963
162
CatchMark
Timber
Trust,
Inc.
Class
A(ö)
6,612
77
Cathay
General
Bancorp
3,138
124
CBTX,
Inc.
1,231
34
Chatham
Lodging
Trust(Æ)(ö)
3,689
47
Chimera
Investment
Corp.(ö)
10,529
159
CIT
Group,
Inc.
2,760
142
Civista
Bancshares,
Inc.
6,042
134
CNO
Financial
Group,
Inc.
10,495
248
Columbia
Banking
System,
Inc.
3,118
120
Community
Bank
System,
Inc.
1,604
121
CorEnergy
Infrastructure
Trust,
Inc.(ö)
702
5
CorePoint
Lodging,
Inc.(Æ)(ö)
3,458
37
Cousins
Properties,
Inc.(ö)
8,101
298
Cowen
Group,
Inc.
Class
A
12,152
499
CTO
Realty
Growth,
Inc.(ö)
11,434
612
Curo
Group
Holdings
Corp.
8,241
140
Customers
Bancorp,
Inc.(Æ)
6,230
243
CVB
Financial
Corp.
13,243
273
DigitalBridge
Group,
Inc.(Æ)(ö)
3,300
26
Diversified
Healthcare
Trust(Æ)
2,249
9
Donegal
Group,
Inc.
Class
A
7,294
106
Dynex
Capital,
Inc.(ö)
7,034
131
Easterly
Government
Properties,
Inc.(ö)
8,386
177
EastGroup
Properties,
Inc.(ö)
677
111
Emerald
Holding,
Inc.(Æ)
21,939
118
Encore
Capital
Group,
Inc.(Æ)(Ð)
2,186
104
Enova
International,
Inc.(Æ)
3,066
105
Enstar
Group,
Ltd.(Æ)
487
116
Enterprise
Financial
Services
Corp.
4,117
191
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Equity
Commonwealth(ö)
10,783
283
Essent
Group,
Ltd.
11,213
504
Evercore
,
Inc.
Class
A
1,692
238
EZCORP,
Inc.
Class
A(Æ)
25,730
155
Federal
Agricultural
Mortgage
Corp.
Class
C
4,407
436
Federated
Hermes,
Inc.
Class
B
3,355
114
First
BanCorp
9,914
118
First
Financial
Bankshares
,
Inc.
1,892
93
First
Financial
Corp.
329
13
First
Foundation,
Inc.
31,150
701
First
Internet
Bancorp
3,232
100
First
Interstate
BancSystem
,
Inc.
Class
A
15,238
637
First
Merchants
Corp.
7,910
330
First
Mid-Illinois
Bancshares,
Inc.
3,797
154
Five
Star
Bancorp
10,729
259
Flagstar
Bancorp,
Inc.
2,235
94
FNB
Corp.
14,183
175
Forestar
Group,
Inc.(Æ)
11,353
237
Franchise
Group,
Inc.(Æ)
12,361
436
Gaming
and
Leisure
Properties,
Inc.(ö)(Û)
17,043
790
Genworth
Financial,
Inc.
Class
A(Æ)
55,863
218
GEO
Group,
Inc.
(The)(ö)
20,661
147
Glacier
Bancorp,
Inc.
3,450
190
Global
Medical
REIT,
Inc.(ö)
14,613
216
Green
Dot
Corp.
Class
A(Æ)
4,924
231
Greenlight
Capital
Re,
Ltd.
Class
A(Æ)
829
8
Guaranty
Bancshares,
Inc.
1,919
65
Hallmark
Financial
Services,
Inc.(Æ)
2,751
12
Hancock
Holding
Co.
10,842
482
Hanmi
Financial
Corp.
14,319
273
Hanover
Insurance
Group,
Inc.
(The)
2,307
313
HarborOne
Bancorp,
Inc.
830
12
Heartland
Financial
USA,
Inc.
1,657
78
Heritage
Financial
Corp.
2,326
58
Heritage
Insurance
Holdings,
Inc.
309
3
Hilltop
Holdings,
Inc.
4,509
164
Home
Bancorp,
Inc.
2,307
88
Home
BancShares
,
Inc.
32,803
809
HomeStreet
,
Inc.
20,447
833
HomeTrust
Bancshares,
Inc.
579
16
Houlihan
Lokey
,
Inc.
Class
A
3,488
285
Hudson
Pacific
Properties,
Inc.(ö)
11,203
312
I3
Verticals,
Inc.
Class
A(Æ)
17,498
529
Independence
Realty
Trust,
Inc.(ö)
14,634
267
Independent
Bank
Corp.
19,981
434
Innovative
Industrial
Properties,
Inc.(ö)
1,892
361
International
Bancshares
Corp.
1,838
79
Investar
Holding
Corp.(Ñ)
6,730
154
Investors
Bancorp,
Inc.
8,306
118
iStar
,
Inc.(ö)
7,019
146
James
River
Group
Holdings,
Ltd.
9,621
361
JER
Investment
Trust,
Inc.(Æ)(Š)(Þ)
1,771
—
Kearny
Financial
Corp.
31,432
376
Kemper
Corp.
5,540
409
Kennedy-Wilson
Holdings,
Inc.
2,699
54
Ladder
Capital
Corp.
Class
A(ö)
13,162
152
LendingClub
Corp.(Æ)
10,852
197
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
23
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
LendingTree
,
Inc.(Æ)
2,000
424
Live
Oak
Bancshares,
Inc.
2,677
158
LTC
Properties,
Inc.(ö)
7,837
301
Merchants
Bancorp
3,132
122
Metropolitan
Bank
Holding
Corp.(Æ)
2,763
167
MFA
Financial,
Inc.(ö)
34,463
158
MoneyGram
International,
Inc.(Æ)
23,481
237
Mr.
Cooper
Group,
Inc.(Æ)
4,275
141
National
Bank
Holdings
Corp.
Class
A
19,949
753
National
Retail
Properties,
Inc.(ö)
7,547
354
New
York
Mortgage
Trust,
Inc.(ö)
34,461
154
NexPoint
Residential
Trust,
Inc.(ö)
342
19
NMI
Holdings,
Inc.
Class
A(Æ)
21,336
480
Northeast
Bank
7,633
228
Northrim
BanCorp
,
Inc.
309
13
OceanFirst
Financial
Corp.
6,867
143
ODP
Corp.
(The)(Æ)
3,784
182
Office
Properties
Income
Trust(ö)
3,622
106
OFG
Bancorp
2,956
65
Old
National
Bancorp
13,260
234
Old
Second
Bancorp,
Inc.
21,184
263
Oportun
Financial
Corp.(Æ)
8,656
173
Origin
Bancorp,
Inc.
570
24
Pacific
Premier
Bancorp,
Inc.
2,925
124
PCB
Bancorp(Æ)
13,323
215
PCSB
Financial
Corp.
20,710
376
Peapack
Gladstone
Financial
Corp.
351
11
PennyMac
Financial
Services,
Inc.
4,240
262
Peoples
Bancorp,
Inc.
22,457
665
Physicians
Realty
Trust(ö)
3,306
61
Piedmont
Office
Realty
Trust,
Inc.
Class
A(ö)
2,049
38
Plymouth
Industrial
REIT,
Inc.(ö)
17,406
348
Popular,
Inc.
13,964
1,048
Potlatch
Corp.(ö)
3,808
202
PRA
Group,
Inc.(Æ)
3,716
143
Premier
Financial
Corp.
24,525
697
Primis
Financial
Corp.(Æ)
9,298
142
ProAssurance
Corp.
2,687
61
PROG
Holdings,
Inc.
7,146
344
PS
Business
Parks,
Inc.(ö)
731
108
Pzena
Investment
Management,
Inc.
Class
A
22,313
246
QCR
Holdings,
Inc.
786
38
QTS
Realty
Trust,
Inc.
Class
A(ö)
4,718
365
Radian
Group,
Inc.
4,857
108
Rayonier,
Inc.(ö)
12,692
456
RE/MAX
Holdings,
Inc.
Class
A
1,875
62
Realogy
Holdings
Corp.(Æ)
14,854
270
Redfin
Corp.(Æ)
1,350
86
Reinsurance
Group
of
America,
Inc.
Class
A(Û)
3,350
382
RenaissanceRe
Holdings,
Ltd.(Ð)
2,284
340
Renasant
Corp.
2,340
94
Repay
Holdings
Corp.(Æ)
21,566
518
Retail
Value,
Inc.(ö)
646
14
Riverview
Bancorp,
Inc.
7,502
53
RLI
Corp.
639
67
RMR
Group,
Inc.
(The)
Class
A
8,687
336
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Santander
Consumer
USA
Holdings,
Inc.(Û)
2,887
105
Sculptor
Capital
Management,
Inc.
2,614
64
Selective
Insurance
Group,
Inc.
5,135
417
ServisFirst
Bancshares,
Inc.
2,091
142
Silvercrest
Asset
Management
Group,
Inc.
Class
A
12,177
183
Simmons
First
National
Corp.
Class
A
2,757
81
SiriusPoint
,
Ltd.(Æ)
2,964
30
SLM
Corp.
17,880
374
SmartFinancial
,
Inc.
2,982
72
South
State
Corp.
3,734
305
Southern
Missouri
Bancorp,
Inc.
2,113
95
SP
Plus
Corp.(Æ)
16,969
519
Spirit
Realty
Capital,
Inc.(ö)
4,215
202
STAG
Industrial,
Inc.(ö)
9,621
360
Stewart
Information
Services
Corp.
6,090
345
Stifel
Financial
Corp.
1,208
78
StoneX
Group,
Inc.(Æ)
6,047
367
Summit
Hotel
Properties,
Inc.(Æ)(ö)
26,948
251
Terreno
Realty
Corp.(ö)
1,131
73
Territorial
Bancorp,
Inc.
16,010
416
Texas
Capital
Bancshares,
Inc.(Æ)(Ð)
3,765
239
Tiptree
Financial,
Inc.
Class
A
29,853
278
TriCo
Bancshares
3,552
151
Triumph
Bancorp,
Inc.(Æ)
9,328
693
UMB
Financial
Corp.
4,667
434
UMH
Properties,
Inc.(ö)
32,950
718
United
Bankshares
,
Inc.
3,683
134
United
Community
Banks,
Inc.
11,662
373
United
Fire
Group,
Inc.
1,150
32
United
Insurance
Holdings
Corp.
3,315
19
Universal
Insurance
Holdings,
Inc.
4,804
67
Unum
Group
13,194
375
Valley
National
Bancorp
30,641
412
Velocity
Financial,
Inc.(Æ)(Ñ)
10,405
130
Veritex
Holdings,
Inc.
9,093
322
Virtus
Investment
Partners,
Inc.
546
152
Voya
Financial,
Inc.(Û)
5,170
318
Walker
&
Dunlop,
Inc.
1,070
112
Washington
Trust
Bancorp,
Inc.
8,423
433
Waterstone
Financial,
Inc.
1,311
26
Webster
Financial
Corp.
14,886
794
WesBanco
,
Inc.
2,209
79
West
Bancorporation,
Inc.
8,472
235
Westamerica
BanCorp
2,147
125
Westwood
Holdings
Group,
Inc.
5,940
129
WSFS
Financial
Corp.
2,159
101
54,520
Health
Care
-
18.0%
Acceleron
Pharma,
Inc.(Æ)
7,181
901
Accuray
,
Inc.(Æ)
42,251
191
AdaptHealth
Corp.(Æ)
12,181
334
Aeglea
BioTherapeutics
,
Inc.(Æ)
1,531
11
Aerie
Pharmaceuticals,
Inc.(Æ)(Ð)
6,847
110
Affimed
NV(Æ)
10,187
87
Agios
Pharmaceuticals,
Inc.(Æ)
9,825
542
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
24
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Akebia
Therapeutics,
Inc.(Æ)
32,400
123
Alkermes
PLC(Æ)(Ð)
14,096
346
Allakos
,
Inc.(Æ)
879
75
Allscripts
Healthcare
Solutions,
Inc.(Æ)
20,587
381
ALX
Oncology
Holdings,
Inc.(Æ)
2,539
139
Amicus
Therapeutics,
Inc.(Æ)
33,238
320
AMN
Healthcare
Services,
Inc.(Æ)
1,255
122
Amneal
Pharmaceuticals,
Inc.(Æ)(Ð)
17,425
89
Anavex
Life
Sciences
Corp.(Æ)(Ñ)
8,789
201
AngioDynamics
,
Inc.(Æ)
1,878
51
ANI
Pharmaceuticals,
Inc.(Æ)
9,889
347
Anika
Therapeutics,
Inc.(Æ)
11,588
502
Apellis
Pharmaceuticals,
Inc.(Æ)
5,227
330
Applied
Genetic
Technologies
Corp.(Æ)(Ð)
2,767
11
Applied
Therapeutics,
Inc.(Æ)
4,551
95
Ardelyx
,
Inc.(Æ)(Ð)
4,995
38
Arena
Pharmaceuticals,
Inc.(Æ)
6,261
427
Argenx
SE
-
ADR(Æ)
2,367
713
Arrowhead
Pharmaceuticals,
Inc.(Æ)
13,652
1,131
Arvinas
,
Inc.(Æ)
2,746
211
Ascendis
Pharma
A/S
-
ADR(Æ)
1,693
223
Assertio
Holdings,
Inc.(Æ)
2,934
5
Atara
Biotherapeutics
,
Inc.(Æ)(Ð)
1,483
23
Athenex
,
Inc.(Æ)
4,864
22
Avid
Bioservices
,
Inc.(Æ)
83,002
2,128
AVROBIO,
Inc.(Æ)(Ð)
3,065
27
Axsome
Therapeutics,
Inc.(Æ)
1,192
80
Beam
Therapeutics,
Inc.(Æ)(Ñ)
4,832
622
Beyond
Air,
Inc.(Æ)(Ñ)
20,990
136
Beyondspring
,
Inc.(Æ)
1,135
12
Biohaven
Pharmaceutical
Holding
Co.,
Ltd.
(Æ)
4,350
422
BioLife
Solutions,
Inc.(Æ)
43,093
1,917
Bluebird
Bio,
Inc.(Æ)(Ð)
9,266
296
Blueprint
Medicines
Corp.(Æ)
3,326
293
BridgeBio
Pharma,
Inc.(Æ)
10,170
620
Cara
Therapeutics,
Inc.(Æ)(Ð)
4,787
68
Cardiovascular
Systems,
Inc.(Æ)
1,707
73
CareDx
,
Inc.(Æ)
1,881
172
Cassava
Sciences,
Inc.(Æ)(Ñ)
4,768
407
Castle
Biosciences,
Inc.(Æ)
968
71
Castlight
Health,
Inc.
Class
B(Æ)
9,806
26
Catalyst
Pharmaceuticals,
Inc.(Æ)
7,018
40
Chimerix
,
Inc.(Æ)
3,540
28
Clovis
Oncology,
Inc.(Æ)(Ñ)
15,107
88
Computer
Programs
&
Systems,
Inc.
5,117
170
Concert
Pharmaceuticals,
Inc.(Æ)(Ð)
2,467
10
CONMED
Corp.
5,296
728
CorVel
Corp.(Æ)
1,042
140
Cue
Biopharma,
Inc.(Æ)
5,259
61
Cytokinetics,
Inc.(Æ)
10,897
216
CytomX
Therapeutics,
Inc.(Æ)
11,657
74
Deciphera
Pharmaceuticals,
Inc.(Æ)
8,976
329
Denali
Therapeutics,
Inc.(Æ)
4,633
363
Dicerna
Pharmaceuticals,
Inc.(Æ)
13,648
509
Eagle
Pharmaceuticals,
Inc.(Æ)(Ð)
1,032
44
Editas
Medicine,
Inc.(Æ)
1,595
90
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Eiger
BioPharmaceuticals
,
Inc.(Æ)
7,909
68
Emergent
BioSolutions
,
Inc.(Æ)
2,113
133
Enanta
Pharmaceuticals,
Inc.(Æ)(Ð)
1,608
71
Endo
International
PLC(Æ)
27,088
127
Ensign
Group,
Inc.
(The)
3,825
332
Epizyme
,
Inc.(Æ)(Ð)
4,733
39
Fennec
Pharmaceuticals,
Inc.(Æ)
6,778
49
FibroGen
,
Inc.(Æ)
14,188
378
Flexion
Therapeutics,
Inc.(Æ)(Ð)
6,143
51
Fortress
Biotech,
Inc.(Æ)
14,968
53
F-Star
Therapeutics,
Inc.(Æ)
14,966
129
Global
Blood
Therapeutics,
Inc.(Æ)(Ð)
2,147
75
Gossamer
Bio,
Inc.(Æ)(Ð)
5,218
42
Gritstone
Oncology,
Inc.(Æ)
7,784
71
Halozyme
Therapeutics,
Inc.(Æ)
2,781
126
Hanger,
Inc.(Æ)
1,086
27
Heron
Therapeutics,
Inc.(Æ)(Ð)
6,017
93
Heska
Corp.(Æ)
6,671
1,532
Homology
Medicines,
Inc.(Æ)
5,890
43
IGM
Biosciences,
Inc.(Æ)(Ñ)
2,841
236
Imara
Inc.(Æ)
18,235
144
InfuSystems
Holdings,
Inc.(Æ)
35,117
730
Inhibrx
,
Inc.(Æ)(Ñ)
9,728
268
Inotiv
,
Inc.(Æ)
5,221
139
Insmed
,
Inc.(Æ)
3,962
113
Inspire
Medical
Systems,
Inc.(Æ)
807
156
Intellia
Therapeutics,
Inc.(Æ)
1,932
313
Intercept
Pharmaceuticals,
Inc.(Æ)(Ð)
5,998
120
Invacare
Corp.(Æ)
27,459
222
Ionis
Pharmaceuticals,
Inc.(Æ)(Ð)
9,195
367
iRadimed
Corp.(Æ)
20,536
604
Ironwood
Pharmaceuticals,
Inc.
Class
A(Æ)
(Ð)
10,666
137
iTeos
Therapeutics,
Inc.(Æ)
1,371
35
Jazz
Pharmaceuticals
PLC(Æ)
2,043
363
Karyopharm
Therapeutics,
Inc.(Æ)(Ð)
3,507
36
Kiniksa
Pharmaceuticals,
Ltd.
Class
A(Æ)
1,390
19
Kura
Oncology,
Inc.(Æ)
2,610
54
Lannett
Co.,
Inc.(Æ)
3,290
15
Lantheus
Holdings,
Inc.(Æ)
30,643
847
LeMaitre
Vascular,
Inc.
17,731
1,082
LHC
Group,
Inc.(Æ)
4,196
840
LivaNova
PLC(Æ)
3,597
303
MacroGenics
,
Inc.(Æ)
4,401
118
MEDNAX,
Inc.(Æ)
8,677
262
Medpace
Holdings,
Inc.(Æ)
7,136
1,259
Meridian
Bioscience,
Inc.(Æ)
2,854
63
Merit
Medical
Systems,
Inc.(Æ)
1,669
108
Minerva
Neurosciences,
Inc.(Æ)
5,945
14
Mirati
Therapeutics,
Inc.(Æ)
2,494
403
ModivCare
,
Inc.(Æ)
1,156
197
Molecular
Templates,
Inc.(Æ)
24,719
194
Molina
Healthcare,
Inc.(Æ)(Ð)(Û)
1,884
477
Natera
,
Inc.(Æ)
464
53
Natus
Medical,
Inc.(Æ)
9,542
248
Nektar
Therapeutics(Æ)(Ð)
1,314
23
Nemaura
Medical,
Inc.(Æ)(Ñ)
25,298
262
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
25
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Neogen
Corp.(Æ)
21,583
994
NeoGenomics
,
Inc.(Æ)
17,471
789
Nevro
Corp.(Æ)
917
152
NextGen
Healthcare,
Inc.(Æ)
4,474
74
NGM
Biopharmaceuticals,
Inc.(Æ)
1,267
25
Novavax
,
Inc.(Æ)
1,187
252
Omnicell
,
Inc.(Æ)
4,662
706
Optinose
,
Inc.(Æ)
1,497
5
Orthofix
Medical,
Inc.(Æ)
1,988
80
Owens
&
Minor,
Inc.
7,249
307
Pacific
Biosciences
of
California,
Inc.(Æ)
10,175
356
Patterson
Cos.,
Inc.
4,644
141
Pennant
Group,
Inc.
(The)(Æ)
3,660
150
Phathom
Pharmaceuticals,
Inc.(Æ)
1,291
44
Phibro
Animal
Health
Corp.
Class
A
5,626
162
Phreesia
,
Inc.(Æ)
9,998
613
Pliant
Therapeutics,
Inc.(Æ)
2,442
71
Poseida
Therapeutics,
Inc.(Æ)
3,496
35
Precision
BioSciences
,
Inc.(Æ)
9,059
113
Prestige
Brands
Holdings,
Inc.(Æ)
1,942
101
Protagonist
Therapeutics,
Inc.(Æ)
3,608
162
PTC
Therapeutics,
Inc.(Æ)
12,197
516
Quidel
Corp.(Æ)(Ð)
1,505
193
Radius
Health,
Inc.(Æ)
4,158
76
RadNet
,
Inc.(Æ)
19,176
646
Reata
Pharmaceuticals,
Inc.
Class
A(Æ)
3,051
432
Recro
Pharma,
Inc.(Æ)(Ñ)
35,863
82
Recursion
Pharmaceuticals,
Inc.
Class
A(Æ)
2,640
96
REGENXBIO,
Inc.(Æ)
2,380
92
Repligen
Corp.(Æ)
6,261
1,250
Rockwell
Medical,
Inc.(Æ)(Ñ)
134,855
123
Sarepta
Therapeutics,
Inc.(Æ)(Ð)
581
45
Savara
,
Inc.(Æ)
4,700
8
Schrodinger,
Inc.(Æ)
7,221
546
Scpharmaceuticals
,
Inc.(Æ)
18,210
111
Selecta
Biosciences,
Inc.(Æ)
18,891
79
ShockWave
Medical,
Inc.(Æ)
1,149
218
Silk
Road
Medical,
Inc.(Æ)
1,793
86
SpringWorks
Therapeutics,
Inc.(Æ)
2,169
179
STAAR
Surgical
Co.(Æ)
1,515
231
Surmodics
,
Inc.(Æ)
425
23
Tactile
Systems
Technology,
Inc.(Æ)
8,022
417
TG
Therapeutics,
Inc.(Æ)
3,755
146
Theravance
Biopharma,
Inc.(Æ)(Ð)
3,703
54
Travere
Therapeutics,
Inc.(Æ)
5,164
75
Tricida
,
Inc.(Æ)(Ð)
4,053
18
Turning
Point
Therapeutics,
Inc.(Æ)
1,194
93
Twist
Bioscience
Corp.(Æ)
2,940
392
Ultragenyx
Pharmaceutical,
Inc.(Æ)
874
83
United
Therapeutics
Corp.(Æ)
2,221
398
UNITY
Biotechnology,
Inc.(Æ)
2,544
12
UroGen
Pharma,
Ltd.(Æ)
5,149
79
Utah
Medical
Products,
Inc.
6,893
586
Vanda
Pharmaceuticals,
Inc.(Æ)(Ð)
3,885
84
Varex
Imaging
Corp.(Æ)(Ð)
4,860
130
Verastem
,
Inc.(Æ)
14,208
58
Vincerx
Pharma,
Inc.(Æ)
4,731
61
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Voyager
Therapeutics,
Inc.(Æ)(Ð)
3,400
14
WaVe
Life
Sciences,
Ltd.(Æ)
1,476
10
Xencor
,
Inc.(Æ)
6,829
236
Zentalis
Pharmaceuticals,
Inc.(Æ)
3,564
190
Zogenix
,
Inc.(Æ)
577
10
Zymeworks
,
Inc.(Æ)
6,959
241
46,375
Materials
and
Processing
-
8.1%
Advanced
Drainage
Systems,
Inc.
1,863
217
AdvanSix
,
Inc.(Æ)
1,851
55
Alcoa
Corp.(Æ)
7,680
283
American
Vanguard
Corp.
13,435
235
American
Woodmark
Corp.(Æ)
1,206
99
Apogee
Enterprises,
Inc.
2,939
120
Arconic
Corp.(Æ)
19,945
710
Ashland
Global
Holdings,
Inc.(Ð)
3,221
282
Beacon
Roofing
Supply,
Inc.(Æ)
3,084
164
Belden,
Inc.(Ð)
1,997
101
BlueLinx
Holdings,
Inc.(Æ)
707
36
Boise
Cascade
Co.(Ð)
2,983
174
BrightView
Holdings,
Inc.(Æ)
14,527
234
Builders
FirstSource
,
Inc.(Æ)
4,605
196
Cabot
Corp.
13,952
795
Caesarstone
,
Ltd.
7,138
105
Capstone
Mining
Corp.(Æ)
15,239
66
Carpenter
Technology
Corp.
2,319
93
Chemours
Co.
(The)
10,140
353
Clearwater
Paper
Corp.(Æ)(Ð)
1,243
36
Compass
Minerals
International,
Inc.
2,678
159
Constellium
SE(Æ)
14,265
270
Cornerstone
Building
Brands,
Inc.(Æ)
11,143
203
Culp,
Inc.
34,352
560
Eagle
Materials,
Inc.
1,331
189
Element
Solutions,
Inc.(Æ)
41,428
970
Gold
Resource
Corp.(Ñ)
73,749
190
Haynes
International,
Inc.
3,007
106
HB
Fuller
Co.
5,370
342
Horizonte Minerals PLC(Æ)
707,920
66
Huntsman
Corp.
24,011
636
Ingevity
Corp.(Æ)
3,654
297
Insteel
Industries,
Inc.
18,633
599
Interface,
Inc.
Class
A
29,852
457
Koppers
Holdings,
Inc.(Æ)
15,908
515
Kraton
Corp.(Æ)
3,094
100
Landec
Corp.(Æ)
29,874
336
LB
Foster
Co.
Class
A(Æ)
309
6
LiqTech
International,
Inc.(Æ)(Ñ)
29,064
213
Louisiana-Pacific
Corp.
10,414
627
Masonite
International
Corp.(Æ)
2,266
253
Mosaic
Co.
(The)
21,563
689
MRC
Global,
Inc.(Æ)
6,012
57
Neenah
Paper,
Inc.
3,845
193
Neo
Lithium
Corp.(Æ)
29,030
68
Northwest
Pipe
Co.(Æ)
3,860
109
Nouveau
Monde
Graphite,
Inc.(Æ)
7,038
55
O-I
Glass,
Inc.(Æ)
11,023
180
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
26
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Olin
Corp.(Û)
8,180
378
Omega
Flex,
Inc.
2,371
348
Orion
Engineered
Carbons
SA(Æ)
2,233
42
Pactiv
Evergreen,
Inc.
13,966
210
Patrick
Industries,
Inc.
1,627
119
Quaker
Chemical
Corp.
2,665
632
Rayonier
Advanced
Materials,
Inc.(Æ)
4,247
28
Ryerson
Holding
Corp.(Æ)
1,318
19
Schnitzer
Steel
Industries,
Inc.
Class
A
3,564
175
Schweitzer-Mauduit
International,
Inc.
9,212
372
Simpson
Manufacturing
Co.,
Inc.
888
98
SiteOne
Landscape
Supply,
Inc.(Æ)
3,995
677
Stelco
Holdings,
Inc.
9,175
269
Stepan
Co.
1,797
216
Summit
Materials,
Inc.
Class
A(Æ)
4,143
144
Trinseo
SA
4,782
286
Tronox
Holdings
PLC
Class
A
47,159
1,057
UFP
Industries,
Inc.(Æ)
1,833
136
Unifi,
Inc.(Æ)
5,882
143
Univar
Solutions,
Inc.
-
ADR(Æ)
12,119
295
Universal
Stainless
&
Alloy
Products,
Inc.(Æ)
15,497
156
Valvoline,
Inc.
37,152
1,207
Venator
Materials
PLC(Æ)
56,184
266
Veritiv
Corp.(Æ)
5,923
364
Verso
Corp.
Class
A
4,081
72
WR
Grace
&
Co.
1,460
101
Zymergen
,
Inc.(Æ)(Ñ)
9,782
391
21,000
Producer
Durables
-
14.6%
ABM
Industries,
Inc.
4,660
207
Acacia
Research
Corp.(Æ)
1,080
7
ACCO
Brands
Corp.
7,361
64
Adient
PLC(Æ)
4,979
225
AGCO
Corp.
3,276
427
Air
Transport
Services
Group,
Inc.(Æ)
13,351
310
Allegiant
Travel
Co.
Class
A(Æ)(Û)
1,657
321
Allied
Motion
Technologies,
Inc.
19,146
661
Allison
Transmission
Holdings,
Inc.
Class
A
10,530
418
Alta
Equipment
Group,
Inc.(Æ)
26,488
352
Applied
Industrial
Technologies,
Inc.
1,216
111
ArcBest
Corp.
3,217
187
Arcosa
,
Inc.
7,183
422
Ardmore
Shipping
Corp.(Æ)
75,143
317
Argan
,
Inc.
10,584
506
ASGN,
Inc.(Æ)
1,968
191
Astec
Industries,
Inc.
1,866
117
Astronics
Corp.(Æ)
3,100
54
Atlas
Air
Worldwide
Holdings,
Inc.(Æ)
2,907
198
Barrett
Business
Services,
Inc.
3,355
243
Bowman
Consulting
Group,
Ltd.(Æ)(Ñ)
4,328
60
Brady
Corp.
Class
A
1,453
81
Brink's
Co.
(The)
4,394
338
Bristow
Group,
Inc.(Æ)(Ð)
854
22
Brookfield
Infrastructure
Corp.
Class
A
880
66
Cactus,
Inc.
Class
A
8,164
300
Casper
Sleep,
Inc.(Æ)
4,685
39
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Chart
Industries,
Inc.(Æ)
3,986
583
Clean
Harbors,
Inc.(Æ)(Ð)
512
48
CoreCivic
,
Inc.(Æ)(Ð)
11,784
123
Covanta
Holding
Corp.
18,609
328
Covenant
Transportation
Group,
Inc.
Class
A(Æ)
12,031
249
CRA
International,
Inc.
9,402
805
Crane
Co.
3,921
362
Darling
Ingredients,
Inc.(Æ)
1,303
88
Deluxe
Corp.
6,592
315
DHT
Holdings,
Inc.
42,427
275
Diamond
S
Shipping,
Inc.(Æ)
802
8
Dorian
LPG,
Ltd.(Æ)(Ð)
1,459
21
Ducommun,
Inc.(Æ)(Ð)
687
37
DXP
Enterprises,
Inc.(Æ)(Ð)
906
30
Dycom
Industries,
Inc.(Æ)
1,290
96
Echo
Global
Logistics,
Inc.(Æ)
4,603
141
EMCOR
Group,
Inc.
3,705
456
Ennis,
Inc.
2,764
59
EnPro
Industries,
Inc.
1,039
101
Euronav
NV
79,084
737
Evo
Payments,
Inc.
Class
A(Æ)
39,441
1,094
Flowserve
Corp.
17,182
693
Fluor
Corp.(Æ)
9,526
169
Franklin
Electric
Co.,
Inc.
1,296
104
frontdoor
,
Inc.(Æ)(Û)
10,398
518
Frontier
Group
Holdings,
Inc.(Æ)
12,515
213
Frontline,
Ltd.(Æ)
1,080
10
Genasys
,
Inc.(Æ)
34,219
188
Genco
Shipping
&
Trading,
Ltd.
829
16
GP
Strategies
Corp.(Æ)
7,968
125
Greenbrier
Cos.,
Inc.
12,292
536
GreenSky
,
Inc.
Class
A(Æ)
2,000
11
Harsco
Corp.(Æ)
18,943
387
Heidrick
&
Struggles
International,
Inc.
14,847
661
Herman
Miller,
Inc.
11,404
538
HNI
Corp.
1,732
76
Hub
Group,
Inc.
Class
A(Æ)
1,643
108
Huntington
Ingalls
Industries,
Inc.(Ð)
1,953
412
Hyster
-Yale
Materials
Handling,
Inc.
2,448
179
ICF
International,
Inc.
2,686
236
Insperity
,
Inc.
2,233
202
International
Seaways,
Inc.
1,397
27
JetBlue
Airways
Corp.(Æ)
6,007
101
KBR,
Inc.
11,279
430
Kennametal,
Inc.
12,153
437
Kimball
International,
Inc.
Class
B
46,606
613
Knight-Swift
Transportation
Holdings,
Inc.
(Æ)
8,462
385
Knoll,
Inc.
4,227
110
Korn
&
Ferry
International
4,448
323
Kratos
Defense
&
Security
Solutions,
Inc.(Æ)
18,881
538
Macquarie
Infrastructure
Corp.(Û)
1,061
41
Manitowoc
Co.,
Inc.
(The)(Æ)
7,570
186
ManpowerGroup
,
Inc.
3,412
406
Marten
Transport,
Ltd.
12,215
201
MasTec
,
Inc.(Æ)
1,858
197
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
27
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Matson,
Inc.
1,546
99
MAXIMUS,
Inc.
6,472
569
Mesa
Air
Group,
Inc.(Æ)
2,413
23
Mesa
Laboratories,
Inc.
4,781
1,296
Methode
Electronics,
Inc.
1,946
96
Mitek
Systems,
Inc.(Æ)
29,165
562
Modine
Manufacturing
Co.(Æ)
3,873
64
MYR
Group,
Inc.(Æ)(Ð)
1,168
106
Orion
Energy
Systems,
Inc.(Æ)
13,976
80
Orion
Group
Holdings,
Inc.(Æ)
40,354
232
Park-Ohio
Holdings
Corp.(Ð)
231
7
PFSweb
,
Inc.(Æ)
12,236
90
Pitney
Bowes,
Inc.
12,414
109
Plug
Power,
Inc.(Æ)
5,038
172
Powell
Industries,
Inc.
570
18
Primoris
Services
Corp.
2,109
62
Radiant
Logistics,
Inc.(Æ)
31,412
218
Ranpak
Holdings
Corp.(Æ)
17,958
449
Resources
Connection,
Inc.
5,769
83
Rexnord
Corp.
3,056
153
RR
Donnelley
&
Sons
Co.(Æ)
11,100
70
Rush
Enterprises,
Inc.
Class
A
2,770
120
Ryder
System,
Inc.(Ð)(Û)
4,457
331
Saia,
Inc.(Æ)
5,478
1,148
Scorpio
Tankers,
Inc.
10,870
240
SFL
Corp.,
Ltd.(Æ)
6,658
51
SHYFT
Group,
Inc.
(The)(Æ)
2,485
93
SkyWest,
Inc.(Æ)
2,763
119
Sleep
Number
Corp.(Æ)
2,586
284
StealthGas
,
Inc.(Æ)
48,167
136
Steelcase,
Inc.
Class
A
12,053
182
Team,
Inc.(Æ)
1,761
12
Teekay
Tankers,
Ltd.
Class
A(Æ)(Ñ)
36,362
524
Tennant
Co.
6,311
504
Terex
Corp.
4,054
193
Tetra
Tech,
Inc.
982
120
Textainer
Group
Holdings,
Ltd.(Æ)
2,768
93
Textron,
Inc.
6,790
467
Thermon
Group
Holdings,
Inc.(Æ)
6,312
108
Titan
International,
Inc.(Æ)
4,615
39
Titan
Machinery,
Inc.(Æ)
1,321
41
TopBuild
Corp.(Æ)
5,136
1,016
Travel
+
Leisure
Co.(Æ)
3,956
235
TreeHouse
Foods,
Inc.(Æ)
4,220
188
TriNet
Group,
Inc.(Æ)(Ð)
2,970
215
Triumph
Group,
Inc.(Æ)
9,126
189
TrueBlue
,
Inc.(Æ)
8,552
240
Tutor
Perini
Corp.(Æ)
48,290
669
Universal
Truckload
Services,
Inc.
11,959
279
US
Xpress
Enterprises,
Inc.
Class
A(Æ)(Ð)
1,378
12
USA
Truck,
Inc.(Æ)
16,342
262
Vectrus
,
Inc.(Æ)
8,315
396
Vishay
Precision
Group,
Inc.(Æ)
4,025
137
VSE
Corp.
1,978
98
Wabash
National
Corp.
5,491
88
Werner
Enterprises,
Inc.
2,525
112
WESCO
International,
Inc.(Æ)
6,933
713
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Whole
Earth
Brands,
Inc.(Æ)
16,033
232
WNS
Holdings,
Ltd.
-
ADR(Æ)
16,325
1,304
Xerox
Holdings
Corp.(Ð)
10,128
238
Yellow
Corp.(Æ)
20,050
131
37,694
Technology
-
12.6%
8x8,
Inc.(Æ)
11,257
312
A10
Networks,
Inc.(Æ)
6,590
74
Absolute
Software
Corp.
49,374
715
ADT,
Inc.
10,110
109
ADTRAN,
Inc.
4,356
90
Agilysys
,
Inc.(Æ)
1,905
108
Alarm.com
Holdings,
Inc.(Æ)
1,922
163
Alpha
&
Omega
Semiconductor,
Ltd.(Æ)
1,465
45
Ambarella
,
Inc.(Æ)(Û)
2,242
239
American
Software,
Inc.
Class
A
38,707
850
Amkor
Technology,
Inc.(Û)
2,190
52
APi
Group
Corp.(Æ)(Þ)
27,497
574
Appfolio
,
Inc.
Class
A(Æ)
2,911
411
Appian
Corp.(Æ)(Ñ)
1,202
166
Applied
Optoelectronics,
Inc.(Æ)(Ñ)
11,969
101
Arlo
Technologies,
Inc.(Æ)
14,701
100
Arrow
Electronics,
Inc.(Æ)(Ð)
3,611
411
Avaya
Holdings
Corp.(Æ)(Ð)
10,959
295
Aviat
Networks,
Inc.(Æ)
1,085
36
Avid
Technology,
Inc.(Æ)
3,237
127
Avnet,
Inc.(Ð)
4,501
180
Axcelis
Technologies,
Inc.(Æ)
16,233
656
Bandwidth,
Inc.
Class
A(Æ)
741
102
Bel
Fuse,
Inc.
Class
B
1,576
23
Benchmark
Electronics,
Inc.
7,055
201
Benefitfocus
,
Inc.(Æ)
2,126
30
Blackline,
Inc.(Æ)
1,648
183
Bottomline
Technologies,
Inc.(Æ)
1,895
70
Brightcove
,
Inc.(Æ)
993
14
CalAmp
Corp.(Æ)
2,103
27
Casa
Systems,
Inc.(Æ)
4,391
39
Cerence
,
Inc.(Æ)
5,501
587
ChannelAdvisor
Corp.(Æ)
7,200
176
Ciena
Corp.(Æ)
7,795
443
Cirrus
Logic,
Inc.(Æ)
4,533
386
CommScope
Holding
Co.,
Inc.(Æ)
39,171
835
CommVault
Systems,
Inc.(Æ)(Û)
2,829
221
comScore,
Inc.(Æ)
68,033
340
Comtech
Telecommunications
Corp.
2,112
51
Concentrix
Corp.(Æ)
2,108
339
CSG
Systems
International,
Inc.
2,581
122
Diebold
Nixdorf,
Inc.(Æ)
11,092
143
Digital
Turbine,
Inc.(Æ)
2,838
216
Domo,
Inc.
Class
B(Æ)
454
37
Donnelley
Financial
Solutions,
Inc.(Æ)
7,334
242
Dropbox,
Inc.
Class
A(Æ)(Ð)
1,526
46
DSP
Group,
Inc.(Æ)
17,014
252
EchoStar
Corp.
Class
A(Æ)
4,098
100
eGain
Corp.(Æ)
1,354
16
EMCORE
Corp.(Æ)
2,852
26
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
28
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Endava
PLC
-
ADR(Æ)
7,298
827
Evolent
Health,
Inc.
Class
A(Æ)(Ð)
1,533
32
Extreme
Networks,
Inc.(Æ)
10,049
112
GTT
Communications,
Inc.(Æ)(Ñ)
28,459
69
GTY
Technology
Holdings,
Inc.(Æ)
23,088
164
Harmonic,
Inc.(Æ)(Ð)
7,643
65
HC2
Holdings,
Inc.(Æ)
29,156
116
Infinera
Corp.(Æ)(Ð)
21,588
220
Inspired
Entertainment,
Inc.(Æ)
13,800
176
Intevac,
Inc.(Æ)
257
2
Jabil
Circuit,
Inc.
5,418
315
Kimball
Electronics,
Inc.(Æ)
16,077
350
Kulicke
&
Soffa
Industries,
Inc.
13,113
803
KVH
Industries,
Inc.(Æ)
8,145
100
Lattice
Semiconductor
Corp.(Æ)
4,034
227
Liberty
Latin
America,
Ltd.
Class
C(Æ)
13,765
194
Limelight
Networks,
Inc.(Æ)(Ð)
22,837
72
LiveRamp
Holdings,
Inc.(Æ)
2,780
130
Maxar
Technologies,
Inc.
5,558
222
Mercury
Systems,
Inc.(Æ)
7,762
514
Mimecast,
Ltd.(Æ)
17,285
917
Model
N,
Inc.(Æ)
13,828
474
NAPCO
Security
Technologies,
Inc.(Æ)
24,725
899
NeoPhotonics
Corp.(Æ)
20,297
207
NETGEAR,
Inc.(Æ)
6,430
246
NetScout
Systems,
Inc.(Æ)(Ð)
8,317
237
New
Relic,
Inc.(Æ)
3,037
203
nLight
,
Inc.(Æ)
10,108
367
Nutanix
,
Inc.
Class
A(Æ)(Û)
8,119
310
OneSpan
,
Inc.(Æ)
22,267
568
Ooma
,
Inc.(Æ)
13,630
257
PAE,
Inc.(Æ)
30,290
270
PCTEL,
Inc.
22,445
147
PDF
Solutions,
Inc.(Æ)
24,951
454
Pegasystems
,
Inc.
8,985
1,251
Ping
Identity
Holding
Corp.(Æ)(Ð)
2,433
56
Plantronics,
Inc.(Æ)
5,031
210
PlayAGS
,
Inc.(Æ)
3,469
34
Power
Integrations,
Inc.
1,826
150
Pure
Storage,
Inc.
Class
A(Æ)
13,267
259
QAD,
Inc.
Class
A
6,904
601
Qualys
,
Inc.(Æ)
2,765
278
Quantum
Corp.(Æ)
34,963
240
RADCOM,
Ltd.(Æ)
15,066
169
Rambus,
Inc.(Æ)
13,315
316
Ribbon
Communications,
Inc.(Æ)
9,591
73
SailPoint
Technologies
Holding,
Inc.(Æ)
4,251
217
Sapiens
International
Corp.
NV(Æ)
2,326
61
ScanSource
,
Inc.(Æ)
941
26
Semtech
Corp.(Æ)
2,803
193
Silicon
Laboratories,
Inc.(Æ)
3,099
475
Simulations
Plus,
Inc.(Ñ)
26,492
1,456
Sonos
,
Inc.(Æ)(Û)
1,404
49
Super
Micro
Computer,
Inc.(Æ)
3,065
108
Switch,
Inc.
Class
A
18,510
391
Synaptics
,
Inc.(Æ)
2,267
353
Synchronoss
Technologies,
Inc.(Æ)
3,315
12
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Tenable
Holdings,
Inc.(Æ)
3,969
164
TrueCar
,
Inc.(Æ)
17,344
98
Unisys
Corp.(Æ)
21,814
552
Upwork
,
Inc.(Æ)
3,876
226
Varonis
Systems,
Inc.(Æ)
3,618
208
Veeco
Instruments,
Inc.(Æ)(Ð)
5,781
139
Verint
Systems,
Inc.(Æ)
2,509
113
VirnetX
Holding
Corp.(Æ)(Ñ)
41,593
178
Workiva
,
Inc.(Æ)
14,323
1,595
Yelp,
Inc.
Class
A(Æ)(Ð)
5,599
224
Zix
Corp.(Æ)
82,140
579
32,401
Utilities
-
4.7%
Alaska
Communications
Systems
Group,
Inc.
(Æ)
27,922
93
Allete
,
Inc.
15,410
1,078
American
States
Water
Co.
1,064
85
APA
Corp.
5,867
127
Artesian
Resources
Corp.
Class
A
3,031
111
Avista
Corp.
5,966
255
Black
Hills
Corp.
1,329
87
Bonanza
Creek
Energy,
Inc.
795
37
Brigham
Minerals,
Inc.
Class
A
62,337
1,326
Clearway
Energy
Operating
LLC(Æ)
1,738
46
Cogent
Communications
Holdings,
Inc.(Û)
3,412
263
Consolidated
Communications
Holdings,
Inc.
(Æ)
20,574
181
Gogo
,
Inc.(Æ)
3,137
36
Goodrich
Petroleum
Corp.(Æ)
10,171
152
IDT
Corp.
Class
B(Æ)
6,213
230
Iridium
Communications,
Inc.(Æ)
3,094
124
MDU
Resources
Group,
Inc.
31,513
988
MGE
Energy,
Inc.
1,435
107
Middlesex
Water
Co.
1,643
134
New
Jersey
Resources
Corp.
2,864
113
Northern
Oil
and
Gas,
Inc.
26,409
549
Northwest
Natural
Holding
Co.
7,259
381
NorthWestern
Corp.
1,188
72
Oasis
Petroleum,
Inc.
4,069
409
ONE
Gas,
Inc.
1,401
104
Otter
Tail
Corp.
1,508
74
Ovintiv
,
Inc.
10,843
341
Plains
GP
Holdings,
LP
Class
A(Æ)(Ð)
5,591
67
PNM
Resources,
Inc.
2,173
106
Portland
General
Electric
Co.
7,358
339
RGC
Resources,
Inc.
21,600
545
Shenandoah
Telecommunications
Co.
2,181
106
South
Jersey
Industries,
Inc.
36,769
953
Southwest
Gas
Holdings,
Inc.
993
66
Spark
Energy,
Inc.
Class
A
6,362
72
Spire,
Inc.
6,850
495
Spok
Holdings,
Inc.
22,635
218
Telephone
&
Data
Systems,
Inc.
6,634
150
Unitil
Corp.
1,793
95
US
Cellular
Corp.(Æ)(Ð)(Û)
1,280
46
Vidler
Water
Resources,
Inc.(Æ)
29,495
392
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
29
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Vine
Energy,
Inc.
Class
A(Æ)
14,323
223
Vistra
Corp.(Ð)(Û)
25,868
480
Vonage
Holdings
Corp.(Æ)
9,802
141
11,997
Total
Common
Stocks
(cost
$199,928)
256,715
Warrants
and
Rights
-
0.0%
Progenics
Pharmaceuticals,
Inc.(Æ)
1,808
—
Stemline
Therapeutics,
Inc.(Æ)
14,060
5
Total
Warrants
and
Rights
(cost
$5)
5
Short-Term
Investments
-
4.5%
U.S.
Cash
Management
Fund(@)
11,514,559
11,512
Total
Short-Term
Investments
(cost
$11,512)
11,512
Other
Securities
-
1.9%
U.S.
Cash
Collateral
Fund(@)(×)
4,961,738
(∞)
4,962
Total
Other
Securities
(cost
$4,962)
4,962
Total
Investments
-
105.9%
(identified
cost
$216,407)
273,194
Securities
Sold
Short
-
(4.4)%
Consumer
Discretionary
-
(0.9)%
1-800-Flowers.com,
Inc.
Class
A(Æ)
(1,259)
(40)
Akoustis
Technologies,
Inc.(Æ)
(1,962)
(21)
AMC
Entertainment
Holdings,
Inc.
Class
A(Æ)
(10,778)
(611)
AMMO,
Inc.(Æ)
(2,691)
(26)
Aspen
Group,
Inc.(Æ)
(194)
(1)
Bally's
Corp.(Æ)
(720)
(39)
Callaway
Golf
Co.(Æ)
(4,972)
(168)
Cardlytics,
Inc.(Æ)
(260)
(33)
CarParts.com,
Inc.(Æ)
(5,986)
(122)
Cinemark
Holdings,
Inc.(Æ)
(7,328)
(161)
Clear
Channel
Worldwide
Holdings,
Inc.(Æ)
(14,137)
(37)
Dorman
Products,
Inc.(Æ)
(239)
(25)
Express,
Inc.(Æ)
(4,005)
(26)
Fox
Factory
Holding
Corp.(Æ)
(810)
(126)
fuboTV
,
Inc.(Æ)
(966)
(31)
GameStop
Corp.
Class
A(Æ)
(1,921)
(411)
GrowGeneration
Corp.(Æ)
(710)
(34)
Leggett
&
Platt,
Inc.
(3,567)
(185)
Levi
Strauss
&
Co.
Class
A
(1,145)
(32)
LifeMD
,
Inc.(Æ)
(2,852)
(34)
Lindblad
Expeditions
Holdings,
Inc.(Æ)
(1,864)
(30)
Marcus
Corp.(Æ)
(1,297)
(28)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
National
CineMedia
,
Inc.
(4,928)
(25)
Rocky
Brands,
Inc.
(706)
(39)
SEACOR
Marine
Holdings,
Inc.(Æ)
(1,781)
(8)
Stitch
Fix,
Inc.
Class
A(Æ)
(469)
(28)
(2,321)
Consumer
Staples
-
(0.1)%
22nd
Centruy
Group,
Inc.(Æ)
(1,991)
(9)
Celsius
Holdings,
Inc.(Æ)
(247)
(19)
Chefs'
Warehouse
Holdings,
Inc.(Æ)
(1,742)
(55)
MGP
Ingredients,
Inc.
(680)
(46)
Utz
Brands,
Inc.
(2,093)
(46)
(175)
Energy
-
(0.2)%
Aemetis
,
Inc.(Æ)
(889)
(10)
Beam
Global(Æ)
(425)
(16)
ChampionX
Corp.(Æ)
(3,465)
(89)
CleanSpark
,
Inc.(Æ)
(976)
(16)
Contango
Oil
&
Gas
Co.(Æ)
(2,866)
(12)
Energous
Corp.(Æ)
(5,663)
(16)
Flotek
Industries,
Inc.(Æ)
(300)
(1)
Flux
Power
Holdings,
Inc.(Æ)
(880)
(10)
FuelCell
Energy,
Inc.(Æ)
(90)
(1)
Gevo
,
Inc.(Æ)
(3,175)
(23)
Liberty
Oilfield
Services,
Inc.
Class
A(Æ)
(8,449)
(120)
Ring
Energy,
Inc.(Æ)
(9,861)
(30)
Smart
Sand,
Inc.(Æ)
(5,126)
(17)
Solaris
Oilfield
Infrastructure,
Inc.
Class
A
(265)
(3)
Sunrun
,
Inc.(Æ)
(2,782)
(155)
Sunworks
,
Inc.(Æ)
(797)
(8)
(527)
Financial
Services
-
(0.5)%
Apollo
Commercial
Real
Estate
Finance,
Inc.(ö)
(10,688)
(170)
Apollo
Global
Management,
Inc.
(3,416)
(212)
Arbor
Realty
Trust,
Inc.(ö)
(8,134)
(145)
BRP
Group,
Inc.
Class
A(Æ)
(4,080)
(109)
Ellington
Residential
Mortgage(ö)
(1,934)
(23)
Emerald
Holding,
Inc.(Æ)
(4,830)
(26)
Franchise
Group,
Inc.(Æ)
(398)
(14)
Hannon
Armstrong
Sustainable
Infrastructure
Capital,
Inc.(ö)
(1,350)
(76)
Invesco
Mortgage
Capital,
Inc.(ö)
(15,600)
(61)
Orchid
Island
Capital,
Inc.(ö)
(29,400)
(153)
Repay
Holdings
Corp.(Æ)
(6,197)
(149)
Rocket
Companies,
Inc.
Class
A
(6,856)
(133)
Western
Asset
Mortgage
Capital
Corp.(ö)
(11,437)
(37)
(1,308)
Health
Care
-
(1.3)%
89bio,
Inc.(Æ)
(611)
(12)
AcelRx
Pharmaceuticals,
Inc.(Æ)
(13,020)
(18)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
30
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
ADMA
Biologics,
Inc.(Æ)
(45,660)
(73)
Agile
Therapeutics,
Inc.(Æ)
(3,900)
(5)
Altimmune
,
Inc.(Æ)
(374)
(4)
Anavex
Life
Sciences
Corp.(Æ)
(2,003)
(46)
AquaBounty
Technologies,
Inc.(Æ)
(4,582)
(25)
Arcus
Biosciences,
Inc.(Æ)
(215)
(6)
Asensus
Surgical,
Inc.(Æ)
(8,611)
(27)
Aspira
Women's
Health,
Inc.(Æ)
(3,141)
(18)
Avidity
Biosciences,
Inc.(Æ)
(780)
(19)
Aytu
BioScience
,
Inc.(Æ)
(2,716)
(14)
Berkeley
Lights,
Inc.(Æ)
(111)
(5)
BioCryst
Pharmaceuticals,
Inc.(Æ)
(9,390)
(148)
BioLife
Solutions,
Inc.(Æ)
(760)
(34)
Bionano
Genomics,
Inc.(Æ)
(12,221)
(90)
Bio-
Techne
Corp.(Æ)
(352)
(158)
CareDx
,
Inc.(Æ)
(111)
(10)
Cassava
Sciences,
Inc.(Æ)
(166)
(14)
Catalent
,
Inc.(Æ)
(1,738)
(188)
CEL-SCI
Corp.(Æ)
(545)
(5)
ChemoCentryx
,
Inc.(Æ)
(247)
(3)
ChromaDex
Corp.(Æ)
(2,073)
(20)
ClearPoint
Neuro,
Inc.(Æ)
(896)
(17)
Codexis
,
Inc.(Æ)
(2,714)
(61)
Co-Diagnostics,
Inc.(Æ)
(1,905)
(16)
Curis
,
Inc.(Æ)
(422)
(3)
DarioHealth
Corp.(Æ)
(540)
(12)
DermTech
,
Inc.(Æ)
(502)
(21)
Dynavax
Technologies
Corp.(Æ)
(1,753)
(17)
Evolus
,
Inc.(Æ)
(1,235)
(16)
Fate
Therapeutics,
Inc.(Æ)
(1,794)
(156)
Fulgent
Genetics,
Inc.(Æ)
(113)
(10)
Genprex
,
Inc.(Æ)
(1,800)
(6)
HealthEquity
,
Inc.(Æ)
(2,495)
(201)
iBio
,
Inc.(Æ)
(9,600)
(14)
IGM
Biosciences,
Inc.(Æ)
(186)
(15)
Immunovant
,
Inc.(Æ)
(1,600)
(17)
INmune
Bio,
Inc.(Æ)
(1,541)
(27)
Inotiv
,
Inc.(Æ)
(255)
(7)
Inovio
Pharmaceuticals,
Inc.(Æ)
(1,043)
(10)
Intra-Cellular
Therapies,
Inc.
Class
A(Æ)
(3,513)
(143)
Invitae
Corp.(Æ)
(3,507)
(118)
Jaguar
Health,
Inc.(Æ)
(5,588)
(9)
Kadmon
Holdings,
Inc.(Æ)
(15,439)
(60)
Lineage
Cell
Therapeutics,
Inc.(Æ)
(2,488)
(7)
MannKind
Corp.(Æ)
(4,873)
(27)
Marinus
Pharmaceuticals,
Inc.(Æ)
(967)
(17)
Matinas
BioPharma
Holdings,
Inc.(Æ)
(12,030)
(9)
MediciNova
,
Inc.(Æ)
(2,672)
(11)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
MEI
Pharma,
Inc.(Æ)
(7,322)
(21)
Mersana
Therapeutics,
Inc.(Æ)
(725)
(10)
Milestone
Scientific,
Inc.(Æ)
(2,400)
(6)
Misonix
,
Inc.(Æ)
(524)
(12)
NanoString
Technologies,
Inc.(Æ)
(776)
(50)
NeoGenomics
,
Inc.(Æ)
(3,011)
(136)
Neubase
Therapeutics,
Inc.(Æ)
(1,730)
(8)
Ocugen
,
Inc.(Æ)
(2,147)
(17)
Ocular
Therapeutix
,
Inc.(Æ)
(1,290)
(18)
OncoCyte
Corp.(Æ)
(4,680)
(27)
Oncternal
Therapeutics,
Inc.(Æ)
(3,481)
(17)
PLx
Pharma,
Inc.(Æ)
(668)
(9)
Protagonist
Therapeutics,
Inc.(Æ)
(406)
(18)
Quanterix
Corp.(Æ)
(1,219)
(72)
R1
RCM,
Inc.(Æ)
(2,476)
(55)
Repligen
Corp.(Æ)
(958)
(191)
Replimune
Group,
Inc.(Æ)
(657)
(25)
Rigel
Pharmaceuticals,
Inc.(Æ)
(18,359)
(80)
Rocket
Pharmaceuticals,
Inc.(Æ)
(297)
(13)
Rubius
Therapeutics,
Inc.(Æ)
(1,442)
(35)
Sangamo
BioSciences
,
Inc.(Æ)
(8,399)
(101)
Seelos
Therapeutics,
Inc.(Æ)
(3,583)
(9)
Seres
Therapeutics,
Inc.(Æ)
(1,701)
(41)
Sientra
,
Inc.(Æ)
(2,686)
(21)
TFF
Pharmaceuticals,
Inc.(Æ)
(1,189)
(11)
TherapeuticsMD
,
Inc.(Æ)
(71,995)
(86)
Tonix
Pharmaceuticals
Holding
Corp.(Æ)
(10,664)
(12)
Vaxart
,
Inc.(Æ)
(2,317)
(17)
Veracyte
,
Inc.(Æ)
(4,246)
(170)
ViewRay
,
Inc.(Æ)
(4,955)
(33)
ZIOPHARM
Oncology,
Inc.(Æ)
(16,917)
(45)
(3,335)
Materials
and
Processing
-
(0.2)%
Builders
FirstSource
,
Inc.(Æ)
(4,320)
(184)
Cleveland-Cliffs,
Inc.(Æ)
(6,546)
(141)
Marrone
Bio
Innovations,
Inc.(Æ)
(5,228)
(9)
Northern
Technologies
International
Corp.
(267)
(5)
Quaker
Chemical
Corp.
(714)
(169)
Uranium
Energy
Corp.(Æ)
(12,899)
(34)
(542)
Producer
Durables
-
(0.2)%
American
Airlines
Group,
Inc.(Æ)
(8,696)
(184)
American
Superconductor
Corp.(Æ)
(1,400)
(24)
Aqua
Metals,
Inc.(Æ)
(5,012)
(15)
Cryoport
,
Inc.(Æ)
(1,390)
(88)
Custom
Truck
One
Source,
Inc.(Æ)
(1,746)
(17)
ExOne
Co.
(The)(Æ)
(709)
(15)
Genasys
,
Inc.(Æ)
(3,863)
(21)
Hydrofarm
Holdings
Group,
Inc.(Æ)
(246)
(14)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
31
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Iteris
,
Inc.(Æ)
(3,104)
(21)
Liquidity
Services,
Inc.(Æ)
(1,335)
(34)
Magnite
,
Inc.(Æ)
(327)
(11)
Mesa
Laboratories,
Inc.
(194)
(53)
Purple
Innovation,
Inc.(Æ)
(1,520)
(40)
Sharps
Compliance
Corp.(Æ)
(1,807)
(19)
Vivint
Smart
Home,
Inc.(Æ)
(3,392)
(45)
Workhorse
Group,
Inc.(Æ)
(1,404)
(23)
(624)
Technology
-
(0.9)%
3D
Systems
Corp.(Æ)
(5,186)
(207)
Airgain
,
Inc.(Æ)
(740)
(15)
American
Software,
Inc.
Class
A
(1,579)
(35)
Anterix
Inc.(Æ)
(386)
(23)
Aspen
Technology,
Inc.(Æ)
(1,442)
(198)
Aterian
,
Inc.(Æ)
(344)
(5)
Atomera
,
Inc.(Æ)
(646)
(14)
AudioEye
,
Inc.(Æ)
(1,235)
(21)
AXT,
Inc.(Æ)
(3,193)
(35)
Brooks
Automation,
Inc.
(2,109)
(201)
Clearfield,
Inc.(Æ)
(1,059)
(40)
Cree,
Inc.(Æ)
(1,961)
(192)
Digimarc
Corp.(Æ)
(710)
(24)
Digital
Turbine,
Inc.(Æ)
(403)
(31)
eMagin
Corp.(Æ)
(6,172)
(21)
HyreCar
,
Inc.(Æ)
(1,349)
(28)
Ideanoics
,
Inc.(Æ)
(4,064)
(12)
Identiv
,
Inc.(Æ)
(1,035)
(18)
II-VI,
Inc.(Æ)
(2,716)
(197)
Immersion
Corp.(Æ)
(7,196)
(63)
Intellicheck
,
Inc.(Æ)
(3,600)
(30)
LivePerson
,
Inc.(Æ)
(1,337)
(84)
Luna
Innovations,
Inc.(Æ)
(181)
(2)
MicroStrategy
,
Inc.
Class
A(Æ)
(306)
(203)
NAPCO
Security
Technologies,
Inc.(Æ)
(1,254)
(46)
Onto
Innovation,
Inc.(Æ)
(3,365)
(246)
PAR
Technology
Corp.(Æ)
(2,329)
(163)
Powerfleet
,
Inc.(Æ)
(4,720)
(34)
Resonant,
Inc.(Æ)
(2,200)
(7)
Sabre
Corp.(Æ)
(14,869)
(186)
Vuzix
Corp.(Æ)
(722)
(13)
(2,394)
Utilities
-
(0.1)%
Brigham
Minerals,
Inc.
Class
A
(1,979)
(42)
Evolution
Petroleum
Corp.
(1,000)
(5)
Globalstar
,
Inc.(Æ)
(6,903)
(12)
NextDecade
Corp.(Æ)
(4,400)
(18)
Penn
Virginia
Corp.(Æ)
(1,642)
(39)
Tellurian,
Inc.(Æ)
(7,016)
(33)
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
(149)
Total
Securities
Sold
Short
(proceeds
$9,012)
(11,375)
Other
Assets
and
Liabilities,
Net
-
(1.5)%
(3,838)
Net
Assets
-
100.0%
257,981
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
32
U.S.
Small
Cap
Equity
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Acquisition
Principal
Amount
($)
Cost
per
Unit
Cost
(000)
Fair
Value
(000)
Securities
Date
or
shares
$
$
$
0.2%
APi
Group
Corp.
04/08/20
27,497
9.96
274
574
JER
Investment
Trust,
Inc.
05/27/04
1,771
82.03
145
—
574
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
95
USD
10,962
09/21
(96)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(96)
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
$
35,317
$
—
$
—
$
—
$
35,317
13.7
Consumer
Staples
8,827
—
—
—
8,827
3.4
Energy
8,584
—
—
—
8,584
3.3
Financial
Services
54,520
—
—
—
54,520
21.1
Health
Care
46,375
—
—
—
46,375
18.0
Materials
and
Processing
21,000
—
—
—
21,000
8.1
Producer
Durables
37,694
—
—
—
37,694
14.6
Technology
32,401
—
—
—
32,401
12.6
Utilities
11,997
—
—
—
11,997
4.7
Warrants
and
Rights
—
—
5
—
5
—
*
Short-Term
Investments
—
—
—
11,512
11,512
4.5
Other
Securities
—
—
—
4,962
4,962
1.9
Total
Investments
256,715
—
5
16,474
273,194
105.9
Securities
Sold
Short
***
(11,375)
—
—
—
(11,375)
(4.4)
Other
Assets
and
Liabilities,
Net
(1.5)
100.0
Other
Financial
Instruments
A
Liabilities
Futures
Contracts
(96)
—
—
—
(96)
(—)
*
Total
Other
Financial
Instruments
**
$
(96)
$
—
$
—
$
—
$
(96)
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
33
*
Less
than
0.05%
of
net
assets.
**
Futures
and
foreign
currency
exchange
contract
values
reflect
the
unrealized
appreciation
(depreciation)
on
the
investments.
***
Refer
to
Schedule
of
Investments
for
detailed
sector
breakout.
(a)
Certain
investments
that
are
measured
at
fair
value
using
the
net
asset
value
per
share
(or
its
equivalent)
practical
expedient
have
not
been
classified
in
the
fair
value
levels.
The
fair
value
amounts
presented
in
the
table
are
intended
to
permit
reconciliation
to
the
amounts
presented
in
the
Schedule
of
Investments.
For
a
description
of
the
Levels,
see
note
2
in
the
Notes
to
Financial
Statements.
For
a
disclosure
on
transfers
into
and
out
of
Level
3
during
the
period
ended
June
30,
2021,
see
note
2
in
the
Notes
to
Financial
Statements.
Investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
a
fair
value
for
the
period
ended
June
30,
2021,
were
less
than
1%
of
net
assets.
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
U.S.
Small
Cap
Equity
Fund
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
96
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
2,447
$
—
Foreign
currency
exchange
contracts
—
(1)
Total
$
2,447
$
(1)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(337)
$
—
*
Includes
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
35
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
$
4,808
$
—
$
4,808
Total
Financial
and
Derivative
Assets
4,808
—
4,808
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
4,808
$
—
$
4,808
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
$
845
$
—
$
845
$
—
Barclays
357
—
357
—
Citigroup
45
—
45
—
Credit
Suisse
116
—
116
—
Goldman
Sachs
2,731
—
2,731
—
HSBC
220
—
220
—
Morgan
Stanley
494
—
494
—
Total
$
4,808
$
—
$
4,808
$
—
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
36
U.S.
Small
Cap
Equity
Fund
Amounts
in
thousands
Offsetting
of
Financial
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
$
11,375
$
—
$
11,375
Total
Financial
and
Derivative
Liabilities
11,375
—
11,375
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
11,375
$
—
$
11,375
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
$
11,375
$
—
$
11,375
$
—
Total
$
11,375
$
—
$
11,375
$
—
*
Fair
value
of
securities
on
loan
as
reported
in
the
footnotes
to
the
Statement
of
Assets
and
Liabilities.
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
37
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
216,407
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
273,194
Foreign
currency
holdings(^)
.........................................................................................................................................................
1
Receivables:
Dividends
and
interest
.......................................................................................................................................................
167
Investments
sold
................................................................................................................................................................
1,616
Fund
shares
sold
................................................................................................................................................................
4
From
broker(a)
...................................................................................................................................................................
729
Prepaid
expenses
...........................................................................................................................................................................
2
Total
assets
.................................................................................................................................................
275,71
3
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
887
Fund
shares
redeemed
.......................................................................................................................................................
75
Accrued
fees
to
affiliates
....................................................................................................................................................
20
1
Other
accrued
expenses
.....................................................................................................................................................
136
Variation
margin
on
futures
contracts
.................................................................................................................................
96
Securities
sold
short,
at
fair
value(‡)
..............................................................................................................................................
11,375
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
4,962
Total
liabilities
.............................................................................................................................................
17,73
2
Net
Assets
............................................................................................................................................................
$
257,981
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
38
U.S.
Small
Cap
Equity
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
97,772
Shares
of
beneficial
interest
...........................................................................................................................................................
133
Additional
paid-in
capital
..............................................................................................................................................................
160,076
Net
Assets
............................................................................................................................................................
$
257,981
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
19.37
Net
assets
...............................................................................................................................................................................
$
257,981,070
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
13,321,876
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
1
(*)
Securities
on
loan
included
in
investments
$
4,808
(‡)
Proceeds
on
securities
sold
short
$
9,012
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
16,474
(a)
Receivable
from
Broker
for
Futures
$
729
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
U.S.
Small
Cap
Equity
Fund
39
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
1,273
Dividends
from
affiliated
funds
.........................................................................................................................................
3
Securities
lending
income
(net)
.........................................................................................................................................
55
Total
investment
income
...............................................................................................................................................................
1,331
Expenses
Advisory
fees
....................................................................................................................................................................
1,146
Administrative
fees
...........................................................................................................................................................
64
Custodian
fees
...................................................................................................................................................................
60
Transfer
agent
fees
...........................................................................................................................................................
6
Professional
fees
...............................................................................................................................................................
40
Trustees’
fees
....................................................................................................................................................................
4
Printing
fees
......................................................................................................................................................................
17
Dividends
from
securities
sold
short
.................................................................................................................................
59
Interest
expense
paid
on
securities
sold
short
...................................................................................................................
40
Miscellaneous
...................................................................................................................................................................
4
Expenses
before
reductions
..............................................................................................................................................
1,44
0
Expense
reductions
...........................................................................................................................................................
(
3
)
Net
expenses
.................................................................................................................................................................................
1,437
Net
investment
income
(loss)
........................................................................................................................................................
(106)
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
......................................................................................................................................................................
54,452
Futures
contracts
..............................................................................................................................................................
2,447
Foreign
currency
exchange
contracts
................................................................................................................................
(1)
Securities
sold
short
..........................................................................................................................................................
(2,992)
Net
realized
gain
(loss)
..................................................................................................................................................................
53,906
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
(831)
Futures
contracts
..............................................................................................................................................................
(337)
Securities
sold
short
..........................................................................................................................................................
444
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(724)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
53,182
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
53,076
Russell
Investment
Funds
U.S.
Small
Cap
Equity
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
40
U.S.
Small
Cap
Equity
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
(106)
$
239
Net
realized
gain
(loss)
......................................................................................................................
53,906
(5,547)
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(724)
31,557
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
53,076
26,249
Distributions
To
shareholders
.................................................................................................................................
(537)
(5,017)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(537)
(5,017)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(30,822)
(12,867)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
21,717
8,365
Net
Assets
Beginning
of
period
.................................................................................................................................
236,264
227,899
End
of
period
..........................................................................................................................................
$
257,981
$
236,264
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
689
$
13,023
963
$
10,350
Proceeds
from
reinvestment
of
distributions
29
537
367
5,017
Payments
for
shares
redeemed
(2,401)
(44,382)
(2,267)
(28,234)
Total
increase
(decrease)
(1,683)
$
(30,822)
(937)
$
(12,867)
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.
42
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
June
30,
2021(1)
15.75
(.01)
3.67
3.66
(.04)
—
—
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
43
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(
e)
%
Portfolio
Turnover
Rate
(d)
(.04)
19.37
23.23
257,981
1.13
1.13
(.08)
74
(.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.
44
U.S.
Small
Cap
Equity
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021
,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
188,889
Administration
fees
10,672
Transfer
agent
fees
939
$
200,
500
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
$
10,681
$
109,348
$
108,517
$
—
$
—
$
11,512
$
3
$
—
U.S.
Cash
Collateral
Fund
13,171
26,114
34,323
—
—
4,962
2
—
$
23,852
$
135,462
$
142,840
$
—
$
—
$
16,474
$
5
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
213,498,253
$
55,101,856
$
(6,877,495)
$
48,224,361
Russell
Investment
Funds
International
Developed
Markets
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
International
Developed
Markets
Fund
45
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000.00
$
1,000.00
Ending
Account
Value
June
30,
2021
$
1,118.00
$
1,019.69
Expenses
Paid
During
Period*
$
5.41
$
5.16
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
1.03%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
46
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
92.4%
Argentina
-
0.0%
YPF
SA
-
ADR(Æ)
34,203
160
Australia
-
1.6%
AGL
Energy,
Ltd.
33,334
204
Alumina,
Ltd.
61,212
75
Australia
&
New
Zealand
Banking
Group,
Ltd.
-
ADR
11,514
243
BHP
Group
PLC
7,485
221
BHP
Group,
Ltd.
-
ADR
2,672
97
BlueScope
Steel,
Ltd.
8,785
144
Commonwealth
Bank
of
Australia
-
ADR
19,069
1,426
Crown
Resorts,
Ltd.(Æ)
8,918
80
CSL,
Ltd.
1,699
363
Dexus
Property
Group(Æ)(ö)
13,721
109
Fortescue
Metals
Group,
Ltd.
15,413
270
GPT
Group
(The)(ö)
35,203
129
Insurance
Australia
Group,
Ltd.(Æ)
56,379
217
Medibank
Pvt
,
Ltd.
23,555
56
National
Australia
Bank,
Ltd.
-
ADR
10,464
205
Rio
Tinto
PLC
17,402
1,434
Rio
Tinto,
Ltd.
-
ADR
3,238
308
Sonic
Healthcare,
Ltd.
6,018
173
South32,
Ltd.
Class
B
72,573
159
Suncorp
Group,
Ltd.(Æ)
11,947
99
Westpac
Banking
Corp.
6,567
127
6,139
Austria
-
0.3%
Erste
Group
Bank
AG
28,336
1,039
OMV
AB
2,685
153
1,192
Belgium
-
0.4%
Ageas
SA
12,592
698
KBC
Groep
NV
7,114
542
Solvay
SA
1,445
184
1,424
Brazil
-
0.5%
Ambev
SA
503,200
1,727
Cia
de
Saneamento
Basico
do
Estado
de
Sao
Paulo(Æ)
43,600
321
2,048
Canada
-
4.9%
Alimentation
Couche-Tard,
Inc.
Class
B
3,568
131
ARC
Resources,
Ltd.
28,974
247
Bank
of
Montreal
2,496
256
Bank
of
Nova
Scotia
(The)
3,421
222
Barrick
Gold
Corp.
31,110
643
BCE,
Inc.
7,410
365
CAE,
Inc.(Æ)
80,434
2,477
Cameco
Corp.
Class
A
17,489
335
Canadian
Imperial
Bank
of
Commerce
2,100
239
Canadian
National
Railway
Co.
33,568
3,542
Canadian
Natural
Resources,
Ltd.
5,503
200
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
CGI
Group,
Inc.(Æ)
1,863
169
CI
Financial
Corp.
18,338
337
Constellation
Software,
Inc.
129
195
Dollarama
,
Inc.
13,886
636
Enbridge,
Inc.
6,029
241
Great-West
Lifeco
,
Inc.
13,079
388
iA
Financial
Corp.,
Inc.
4,032
220
Kinross
Gold
Corp.
54,551
346
Loblaw
Cos.,
Ltd.
2,997
184
Magna
International,
Inc.
Class
A
3,929
364
Manulife
Financial
Corp.
36,766
724
National
Bank
of
Canada
2,100
157
Open
Text
Corp.
2,344
119
Pembina
Pipeline
Corp.
7,706
245
Power
Corp.
of
Canada
6,330
200
Royal
Bank
of
Canada
-
GDR
10,049
1,018
Shaw
Communications,
Inc.
Class
B
7,916
229
Shopify,
Inc.
Class
A(Æ)
706
1,032
Sun
Life
Financial,
Inc.
21,779
1,123
Suncor
Energy,
Inc.
7,002
168
Topicus.com,
Inc.
310
23
Toronto-Dominion
Bank
(The)
22,531
1,579
Tourmaline
Oil
Corp.
11,155
319
WSP
Global,
Inc.
1,496
175
18,848
China
-
1.8%
Alibaba
Group
Holding,
Ltd.
-
ADR(Æ)
16,747
3,798
Dongfeng
Motor
Group
Co.,
Ltd.
Class
H
712,000
640
Ping
An
Insurance
Group
Co.
of
China,
Ltd.
Class
H
47,466
463
Tencent
Holdings,
Ltd.
18,784
1,413
Yatsen
Holding,
Ltd.
-
ADR(Æ)(
Ñ
)
38,086
357
6,671
Denmark
-
1.6%
AP
Moller
-
Maersk
A/S
Class
B
919
2,643
Coloplast
A/S
Class
B
975
160
Danske
Bank
A/S
46,133
811
Drilling
Co.
of
1972
A/S
(The)(Æ)
1,163
49
DSV
Panalpina
A/S
4,382
1,022
Genmab
A/S(Æ)
631
257
H
Lundbeck
A/S
1,635
52
Novo
Nordisk
A/S
Class
B
5,662
474
Novozymes
A/S
Class
B
2,245
169
Pandora
A/S
1,918
258
Vestas
Wind
Systems
A/S
3,905
153
6,048
Finland
-
2.0%
Elisa
OYJ
4,856
290
Fortum
OYJ
5,927
163
Kone
OYJ
Class
B
6,334
517
Neste
OYJ
16,869
1,034
Nokia
OYJ(Æ)
622,700
3,335
Nokian
Renkaat
OYJ
2,135
86
Nordea
Bank
AB
26,971
300
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
47
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Orion
OYJ
Class
B
1,887
81
Sampo
OYJ
Class
A
12,054
554
Stora
Enso
OYJ
Class
R
12,544
229
UPM-
Kymmene
OYJ
20,318
769
Wartsila
OYJ
Abp
Class
B
6,190
92
7,450
France
-
9.2%
Accor
SA(Æ)
16,176
604
Air
Liquide
SA
Class
A
949
166
Airbus
Group
SE(Æ)
6,730
867
Amundi
SA(Þ)
15,123
1,332
Arkema
SA
1,182
148
Atos
SE
3,298
201
AXA
SA
51,094
1,294
BNP
Paribas
SA
22,876
1,433
Bouygues
SA
-
ADR
16,761
620
Bureau
Veritas
SA
16,799
532
Capgemini
SE
3,444
662
Carrefour
SA
8,552
168
Cie
de
Saint-Gobain
SA
28,987
1,911
Cie
Generale
des
Etablissements
Michelin
SCA
Class
B
14,902
2,378
Credit
Agricole
SA
10,985
154
Danone
SA
8,666
610
Dassault
Aviation
SA
225
265
Dassault
Systemes
SE
680
165
Eiffage
SA
1,346
137
Engie
SA
74,924
1,027
EssilorLuxottica
SA
1,018
188
Faurecia
SE
482
24
Hermes
International
265
386
L'Oreal
SA
3,800
1,694
LVMH
Moet
Hennessy
Louis
Vuitton
SE
-
ADR
3,381
2,655
Orange
SA
-
ADR
67,915
774
Publicis
Groupe
SA
-
ADR
20,453
1,309
Renault
SA(Æ)
11,915
482
Rexel
SA
Class
H
178,721
3,741
Sanofi
-
ADR
9,703
1,017
Schneider
Electric
SE
19,068
3,003
SCOR
SE
-
ADR
26,641
847
Societe
Generale
SA
29,645
873
Technip
Energies
NV
-
ADR(Æ)
32,787
447
Total
SA
44,407
2,015
Worldline
SA(Æ)(Þ)
8,621
808
34,937
Germany
-
4.5%
1&1
Drillisch
AG
2,043
62
Allianz
SE
1,463
365
BASF
SE
29,593
2,332
Bayer
AG
4,326
263
Bayerische
Motoren
Werke
Aktiengesellschaft
2,256
239
Brenntag
AG
2,404
224
Ceconomy
AG(Æ)
49,527
242
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Continental
AG
3,841
565
Covestro
AG(Þ)
35,844
2,315
Daimler
AG
15,045
1,344
Deutsche
Boerse
AG
701
122
Deutsche
Post
AG
4,228
288
Deutsche
Telekom
AG
14,415
305
Evonik
Industries
AG
3,199
107
Fresenius
Medical
Care
AG
&
Co.
16,372
1,360
Fresenius
SE
&
Co.
KGaA
23,920
1,248
GEA
Group
AG
4,183
169
Hannover
Rueck
SE
2,013
337
HeidelbergCement
AG
1,689
145
Infineon
Technologies
AG
-
ADR
19,987
801
Metro
AG
15,401
191
Muenchener
Rueckversicherungs-
Gesellschaft
AG
3,265
894
SAP
SE
-
ADR
2,261
319
Scout24
AG(Þ)
1,967
166
Siemens
AG
6,916
1,096
Siemens
Energy
AG(Æ)
4,600
139
Uniper
SE
2,518
93
United
Internet
AG
4,467
183
Zalando
SE(Æ)(Þ)
8,822
1,066
16,980
Hong
Kong
-
2.6%
AIA
Group,
Ltd.
226,008
2,810
Bank
of
East
Asia,
Ltd.
(The)
39,200
73
CK
Asset
Holdings,
Ltd.
130,549
901
CK
Hutchison
Holdings,
Ltd.
Class
B
19,313
150
CK
Infrastructure
Holdings,
Ltd.
17,000
101
CLP
Holdings,
Ltd.
39,000
385
Galaxy
Entertainment
Group,
Ltd.(Æ)
84,000
672
Hang
Seng
Bank,
Ltd.
26,300
525
Henderson
Land
Development
Co.,
Ltd.
25,200
119
Hong
Kong
Exchanges
&
Clearing,
Ltd.
4,000
238
Jardine
Matheson
Holdings,
Ltd.
3,600
230
New
World
Development
Co.,
Ltd.
23,000
120
Power
Assets
Holdings,
Ltd.
55,000
338
Sino
Land
Co.,
Ltd.
59,698
94
Sun
Hung
Kai
Properties,
Ltd.
11,500
171
Techtronic
Industries
Co.,
Ltd.
170,771
2,990
WH
Group,
Ltd.(Þ)
123,000
111
10,028
India
-
1.3%
Canara
Bank(Æ)
119,258
244
Housing
Development
Finance
Corp.,
Ltd.
103,168
3,442
NTPC,
Ltd.
30,955
49
Oil
&
Natural
Gas
Corp.,
Ltd.
276,770
440
Reliance
Industries,
Ltd.
-
GDR(Þ)
9,265
524
Zee
Entertainment
Enterprises,
Ltd.
105,298
305
5,004
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
48
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Indonesia
-
0.1%
Bank
Mandiri
Persero
Tbk
PT
843,000
342
Ireland
-
1.6%
AIB
Group
PLC(Æ)
180,201
464
Bank
of
Ireland
Group
PLC(Æ)
96,383
516
CRH
PLC
6,887
349
DCC
PLC
2,160
177
Flutter
Entertainment
PLC(Æ)
6,513
1,182
Kerry
Group
PLC
Class
A
16,966
2,369
Kingspan
Group
PLC
1,837
174
Ryanair
Holdings
PLC
-
ADR(Æ)
5,069
549
Smurfit
Kappa
Group
PLC
2,593
141
5,921
Israel
-
0.1%
Bank
Leumi
Le-Israel
BM(Æ)
18,764
143
Israel
Discount
Bank,
Ltd.
Class
A(Æ)
18,095
86
229
Italy
-
2.0%
Assicurazioni
Generali
SpA
52,432
1,050
Atlantia
SpA
(Æ)
7,339
133
BPER
Banca
131,241
286
Davide
Campari-Milano
NV(Æ)
56,409
757
Enel
SpA
161,918
1,504
Eni
SpA
-
ADR
90,954
1,110
FinecoBank
Banca
Fineco
SpA
(Æ)
18,788
328
Intesa
Sanpaolo
SpA
77,400
214
Moncler
SpA
9,147
619
Saipem
SpA
(Æ)(
Ñ
)
113,516
275
Telecom
Italia
SpA
184,329
92
UniCredit
SpA
94,966
1,119
7,487
Japan
-
16.7%
Alfresa
Holdings
Corp.
8,300
123
Alps
Alpine
Co.,
Ltd.
12,300
129
Asahi
Glass
Co.,
Ltd.
2,900
122
Asahi
Kasei
Corp.
7,900
87
Astellas
Pharma,
Inc.
54,100
942
Benesse
Holdings,
Inc.
3,100
77
Bridgestone
Corp.
37,600
1,710
Brother
Industries,
Ltd.
3,700
74
Canon,
Inc.
21,400
484
Chiba
Bank,
Ltd.
(The)
14,900
90
Chiyoda
Corp.(Æ)
31,000
123
Chubu
Electric
Power
Co.,
Inc.
9,400
115
Citizen
Watch
Co.,
Ltd.
31,200
115
Dai-ichi
Life
Holdings,
Inc.
42,750
782
Daiichi
Sankyo
Co.,
Ltd.
17,800
383
Daikin
Industries,
Ltd.
800
149
Daito
Trust
Construction
Co.,
Ltd.
2,600
284
Daiwa
House
Industry
Co.,
Ltd.
2,700
81
DeNA
Co.,
Ltd.
19,800
421
Denso
Corp.
14,700
1,002
Eisai
Co.,
Ltd.
13,240
1,294
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
ENEOS
Holdings,
Inc.
28,200
118
Fuji
Media
Holdings,
Inc.
12,900
143
FUJIFILM
Holdings
Corp.
3,200
237
Fujitsu,
Ltd.
3,100
581
Fukuoka
Financial
Group,
Inc.
28,500
496
Gree
,
Inc.
55,900
295
Hino
Motors,
Ltd.
73,900
650
Hitachi
Metals,
Ltd.
60,300
1,153
Hitachi,
Ltd.
4,000
229
Honda
Motor
Co.,
Ltd.
117,700
3,774
Hoya
Corp.
1,200
159
Iida
Group
Holdings
Co.,
Ltd.
37,300
960
Inpex
Corp.
83,100
623
Isuzu
Motors,
Ltd.
187,900
2,492
ITOCHU
Corp.
9,000
259
Japan
Airlines
Co.,
Ltd.(Æ)
31,000
671
Japan
Exchange
Group,
Inc.
8,300
184
Japan
Tobacco,
Inc.
25,200
476
JGC
Holdings
Corp.
45,400
423
Kajima
Corp.
9,000
114
Kamigumi
Co.,
Ltd.
14,900
301
KDDI
Corp.
33,000
1,029
Keyence
Corp.
4,500
2,270
Kirin
Holdings
Co.,
Ltd.
17,500
341
Komatsu,
Ltd.
66,500
1,652
Kyocera
Corp.
6,700
414
M3,
Inc.
2,000
146
Marubeni
Corp.
24,400
212
Menicon
Co.,
Ltd.
23,100
1,621
Mitsubishi
Chemical
Holdings
Corp.
17,900
150
Mitsubishi
Corp.
6,200
169
Mitsubishi
Electric
Corp.
52,500
761
Mitsubishi
Estate
Co.,
Ltd.
43,200
698
Mitsubishi
Gas
Chemical
Co.,
Inc.
7,600
161
Mitsubishi
Heavy
Industries,
Ltd.
9,900
291
Mitsubishi
Motors
Corp.(Æ)
65,200
183
Mitsubishi
UFJ
Financial
Group,
Inc.
254,300
1,373
Mitsubishi
UFJ
Lease
&
Finance
Co.,
Ltd.
21,300
114
Mitsui
&
Co.,
Ltd.
51,200
1,152
Mitsui
Chemicals,
Inc.
3,500
121
MS&AD
Insurance
Group
Holdings,
Inc.
15,300
442
Murata
Manufacturing
Co.,
Ltd.
8,800
672
NGK
Spark
Plug
Co.,
Ltd.
8,100
120
Nikon
Corp.
39,900
426
Nintendo
Co.,
Ltd.
810
471
Nippon
Telegraph
&
Telephone
Corp.
6,306
164
Nippon
Television
Holdings,
Inc.
26,800
310
Nissan
Motor
Co.,
Ltd.(Æ)
102,700
509
Nitori
Holdings
Co.,
Ltd.
800
142
Nitto
Denko
Corp.
3,100
231
Nomura
Holdings,
Inc.
84,600
430
Nomura
Real
Estate
Holdings,
Inc.
4,900
124
Obayashi
Corp.
11,200
89
Oji
Holdings
Corp.
25,000
143
Ono
Pharmaceutical
Co.,
Ltd.
11,500
255
ORIX
Corp.
9,900
167
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
49
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Otsuka
Holdings
Co.,
Ltd.
8,400
348
Panasonic
Corp.
144,100
1,667
Resona
Holdings,
Inc.
319,800
1,226
Sekisui
Chemical
Co.,
Ltd.
6,300
108
Sekisui
House,
Ltd.
10,700
219
Shimamura
Co.,
Ltd.
6,600
633
Shin-Etsu
Chemical
Co.,
Ltd.
18,635
3,116
SMC
Corp.
900
532
SoftBank
Group
Corp.
18,800
661
Sompo
Japan
Nipponkoa
Holdings,
Inc.
3,900
144
Sony
Corp.
8,110
787
Subaru
Corp.
23,600
465
Sumitomo
Chemical
Co.,
Ltd.
25,000
132
Sumitomo
Corp.
10,900
146
Sumitomo
Electric
Industries,
Ltd.
13,000
192
Sumitomo
Heavy
Industries,
Ltd.
13,400
368
Sumitomo
Mitsui
Banking
Corp.
60,100
2,068
Sumitomo
Mitsui
Trust
Holdings,
Inc.
23,000
728
Suzuki
Motor
Corp.
6,400
271
Sysmex
Corp.
1,400
165
T&D
Holdings,
Inc.
107,200
1,393
Taiheiyo
Cement
Corp.
14,200
311
Takeda
Pharmaceutical
Co.,
Ltd.
29,000
974
Teijin,
Ltd.
4,500
68
THK
Co.,
Ltd.
12,200
364
Tohoku
Electric
Power
Co.,
Inc.
7,800
61
Tokio
Marine
Holdings,
Inc.
10,000
458
Tokyo
Electron,
Ltd.
4,700
2,024
Toppan
Printing
Co.,
Ltd.
18,000
289
Toray
Industries,
Inc.
27,700
184
Tosoh
Corp.
5,400
93
Toyota
Industries
Corp.
24,100
2,084
Toyota
Motor
Corp.
6,500
567
Toyota
Tsusho
Corp.
3,000
142
Trend
Micro,
Inc.
1,700
89
Yamada
Denki
Co.,
Ltd.
23,500
108
63,663
Jersey
-
0.1%
Allfunds
Group
PLC(Æ)
15,546
271
Luxembourg
-
1.0%
ArcelorMittal
SA(Æ)
42,010
1,290
Eurofins
Scientific
SE
16,811
1,921
Millicom
International
Cellular
SA(Æ)
547
22
RTL
Group
SA
10,228
610
Tenaris
SA
13,804
151
3,994
Macao
-
0.2%
Sands
China,
Ltd.(Æ)
139,625
588
Malaysia
-
0.1%
CIMB
Group
Holdings
BHD
309,300
344
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Mexico
-
0.8%
America
Movil
SAB
de
CV
Class
L
-
ADR
47,418
711
Grupo
Televisa
SAB
-
ADR
169,879
2,426
3,137
Netherlands
-
5.0%
ABN
AMRO
Bank
NV(Þ)
53,705
648
Adyen
NV(Æ)(Þ)
332
811
Akzo
Nobel
NV
5,136
635
ASML
Holding
NV
3,563
2,453
Exor
NV
1,643
132
Ferrari
NV
3,107
641
Heineken
NV
34,259
4,152
ING
Groep
NV
270,369
3,577
Koninklijke
Ahold
Delhaize
NV
9,657
287
Koninklijke
KPN
NV
110,645
346
Koninklijke
Philips
NV
2,803
139
NN
Group
NV
2,396
113
PostNL
NV
-
ADR
55,011
299
Randstad
NV
2,045
157
Royal
Dutch
Shell
PLC
Class
A
123,233
2,485
Royal
Dutch
Shell
PLC
Class
B
101,527
1,973
Stellantis
NV
13,306
263
19,111
New
Zealand
-
0.6%
Fisher
&
Paykel
Healthcare
Corp.,
Ltd.
98,682
2,147
Meridian
Energy,
Ltd.
22,166
82
Spark
New
Zealand,
Ltd.
39,929
134
2,363
Norway
-
0.5%
DNB
ASA
6,400
139
Mowi
ASA
16,046
408
Norsk
Hydro
ASA
160,130
1,024
Orkla
ASA
18,550
189
Yara
International
ASA
3,614
190
1,950
Russia
-
0.5%
Gazprom
PJSC
-
ADR
85,908
657
Lukoil
PJSC
-
ADR
2,628
244
Sberbank
of
Russia
PJSC
-
ADR
25,020
415
VEON,
Ltd.(Æ)
134,442
246
Yandex
NV
Class
A(Æ)
5,399
382
1,944
Singapore
-
0.8%
DBS
Group
Holdings,
Ltd.
40,409
897
Oversea-Chinese
Banking
Corp.,
Ltd.
15,292
136
Singapore
Technologies
Engineering,
Ltd.
21,600
62
Singapore
Telecommunications,
Ltd.
269,000
459
United
Overseas
Bank,
Ltd.
6,400
123
UOL
Group,
Ltd.
35,200
191
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
50
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Wilmar
International,
Ltd.
331,100
1,110
2,978
South
Africa
-
0.7%
Anglo
American
PLC
41,711
1,662
Gold
Fields,
Ltd.
-
ADR
34,775
309
Impala
Platinum
Holdings,
Ltd.
3,810
63
MTN
Group,
Ltd.(Æ)
51,834
375
Old
Mutual,
Ltd.
353,626
334
2,743
South
Korea
-
2.4%
Hankook
Tire
&
Technology
Co.,
Ltd.
9,991
459
KB
Financial
Group,
Inc.
21,874
1,082
KT
Corp.
-
ADR
63,026
879
LG
Household
&
Health
Care,
Ltd.
1,344
2,103
POSCO
7,155
2,202
Samsung
Electronics
Co.,
Ltd.
12,373
887
Shinhan
Financial
Group
Co.,
Ltd.
45,574
1,641
9,253
Spain
-
1.9%
ACS
Actividades
de
Construccion
y
Servicios
SA
3,000
80
Amadeus
IT
Group
SA
Class
A(Æ)
17,908
1,259
Banco
Bilbao
Vizcaya
Argentaria
SA
-
ADR
30,527
190
Banco
Santander
SA
-
ADR
54,541
208
CaixaBank
SA
618,655
1,902
Cellnex
Telecom
SA(Þ)
34,055
2,170
Endesa
SA
-
ADR
8,876
215
Industria
de
Diseno
Textil
SA
17,389
613
Naturgy
Energy
Group
SA
4,700
121
Red
Electrica
Corp.
SA
10,423
193
Repsol
SA
-
ADR
11,675
146
Telefonica
SA
-
ADR
27,730
130
7,227
Sweden
-
1.6%
Assa
Abloy
AB
Class
B
26,328
793
Atlas
Copco
AB(Æ)
10,178
624
Boliden
AB(Æ)
15,385
592
Epiroc
AB
Class
A
8,462
193
Hexagon
AB(Æ)
12,446
185
Husqvarna
AB
Class
B
8,535
113
ICA
Gruppen
AB
1,554
72
Investor
AB
Class
B
6,256
144
Kinnevik
AB
Class
B(Æ)
6,539
262
Nibe
Industrier
AB
Class
B
13,092
138
Sandvik
AB
65,724
1,678
Skandinaviska
Enskilda
Banken
AB
Class
A
10,055
130
Skanska
AB
Class
B
6,059
161
SKF
AB
Class
B
5,201
132
Svenska
Handelsbanken
AB
Class
A
12,929
146
Swedbank
AB
Class
A
7,140
133
Swedish
Match
AB
58,170
496
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Volvo
AB
Class
B
8,126
196
6,188
Switzerland
-
7.7%
ABB,
Ltd.
18,940
643
Adecco
Group
AG
24,892
1,692
Alcon,
Inc.
8,144
570
Baloise
Holding
AG
1,388
216
Chocoladefabriken
Lindt
&
Spruengli
AG
17
169
Cie
Financiere
Richemont
SA
Class
A
1,133
137
Credit
Suisse
Group
AG
Class
A
58,136
608
Geberit
AG
193
145
Julius
Baer
Group,
Ltd.
21,573
1,407
Kuehne
&
Nagel
International
AG
1,752
600
LafargeHolcim
,
Ltd.(Æ)
25,395
1,524
Lonza
Group
AG
1,200
851
Nestle
SA
41,174
5,129
Novartis
AG
28,036
2,555
Partners
Group
Holding
AG
1,445
2,190
Roche
Holding
AG
9,148
3,448
SGS
SA
183
565
Sika
AG
570
186
Straumann
Holding
AG
91
145
Swiss
Life
Holding
AG
402
195
Swiss
Re
AG
6,905
622
Swisscom
AG
399
228
Temenos
AG
9,853
1,583
UBS
Group
AG
221,483
3,391
Zurich
Insurance
Group
AG
1,811
726
29,525
Taiwan
-
2.7%
Catcher
Technology
Co.,
Ltd.
185,513
1,212
Hon
Hai
Precision
Industry
Co.,
Ltd.
623,184
2,505
MediaTek
,
Inc.
28,000
967
Shin
Kong
Financial
Holding
Co.,
Ltd.
788,000
269
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
88,000
1,879
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
-
ADR
27,568
3,313
10,145
Thailand
-
0.2%
Kasikornbank
PCL
177,400
657
Turkey
-
0.1%
Turk
Telekomunikasyon
AS
230,967
177
Turkcell
Iletisim
Hizmetleri
AS
150,487
279
456
United
Kingdom
-
11.1%
3i
Group
PLC
25,073
408
Admiral
Group
PLC
5,541
241
Ashtead
Group
PLC
3,941
293
Associated
British
Foods
PLC
7,585
233
AstraZeneca
PLC
14,665
1,760
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
51
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Aviva
PLC
161,305
907
Babcock
International
Group
PLC(Æ)
90,925
365
BAE
Systems
PLC
151,692
1,097
Barclays
PLC
441,603
1,047
Barratt
Developments
PLC
22,883
220
Berkeley
Group
Holdings
PLC
5,420
345
BP
PLC
403,093
1,762
British
American
Tobacco
PLC
10,184
397
British
Land
Co.
PLC
(The)(ö)
52,154
358
BT
Group
PLC(Æ)
363,985
978
Centrica
PLC(Æ)
406,506
289
Coca-Cola
European
Partners
PLC
1,154
68
Compass
Group
PLC(Æ)
114,904
2,423
Diageo
PLC
20,209
968
Direct
Line
Insurance
Group
PLC
68,627
270
Endeavour
Mining
Corp.
(
Ñ
)
9,734
209
Experian
PLC
2,158
83
Ferguson
PLC
1,253
174
GlaxoSmithKline
PLC
-
ADR
8,610
169
Halma
PLC
6,590
246
HSBC
Holdings
PLC
337,698
1,949
Imperial
Tobacco
Group
PLC
3,708
80
InterContinental
Hotels
Group
PLC(Æ)
980
65
Intermediate
Capital
Group
PLC(Æ)
29,906
881
J
Sainsbury
PLC
808,477
3,042
John
Wood
Group
PLC(Æ)
493,751
1,506
Johnson
Matthey
PLC
4,452
190
Kingfisher
PLC
188,547
951
Land
Securities
Group
PLC(ö)
34,795
326
Legal
&
General
Group
PLC
40,525
144
Linde
PLC
11,534
3,333
Lloyds
Banking
Group
PLC
392,559
254
M&G
PLC
38,702
123
Marks
&
Spencer
Group
PLC(Æ)
175,249
355
Mondi
PLC
7,115
187
Natwest
Group
PLC
329,048
925
Persimmon
PLC
Class
A
5,455
224
Reckitt
Benckiser
Group
PLC
763
68
RELX
PLC
10,932
290
Segro
PLC(ö)
25,773
390
Smith
&
Nephew
PLC
36,261
786
Smiths
Group
PLC
3,388
75
St.
James's
Place
PLC
21,061
431
Standard
Chartered
PLC
285,594
1,820
Standard
Life
Aberdeen
PLC(Æ)
105,638
396
Taylor
Wimpey
PLC
78,473
173
TechnipFMC
PLC(Æ)
125,870
1,139
Tesco
PLC
511,123
1,578
Travis
Perkins
PLC(Æ)
84,207
1,969
Unilever
PLC
7,336
429
Vodafone
Group
PLC
810,531
1,363
Wausau
Paper
Corp.
98,773
1,337
Wm
Morrison
Supermarkets
PLC
61,940
211
42,300
United
States
-
3.2%
Accenture
PLC
Class
A
9,481
2,795
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Allegion
PLC
19,661
2,739
Amdocs,
Ltd.
23,607
1,826
Aon
PLC
Class
A
9,756
2,329
James
Hardie
Industries
PLC
16,020
544
Lululemon
Athletica
,
Inc.(Æ)
2,210
807
Ovintiv
,
Inc.
16,344
515
Pagseguro
Digital,
Ltd.
Class
A(Æ)
12,772
714
12,269
Total
Common
Stocks
(cost
$307,047)
352,014
Preferred
Stocks
-
2.4%
Germany
-
1.5%
Henkel
AG
&
Co.
KGaA
2.102%
(Ÿ)
1,853
196
Porsche
Automobil
Holding
SE
2.347%
(Ÿ)
5,695
610
Sartorius
AG
0.169%
(Ÿ)
2,890
1,504
Volkswagen
AG
2.234%
(Ÿ)
13,762
3,451
5,761
South
Korea
-
0.9%
Samsung
Electronics
Co.,
Ltd.
0.000%
(Æ)
51,717
3,385
Total
Preferred
Stocks
(cost
$6,330)
9,146
Warrants
and
Rights
-
0.0%
Spain
-
0.0%
ACS
Actividades
de
Construccion
y
Servicios
SA
(Æ)
2021 Rights
3,000
4
Total
Warrants
and
Rights
(cost
$5)
4
Short-Term
Investments
-
3.0%
United
States
-
3.0%
U.S.
Cash
Management
Fund(@)
11,401,712
(∞)
11,399
Total
Short-Term
Investments
(cost
$11,399)
11,399
Other
Securities
-
0.2%
U.S.
Cash
Collateral
Fund(@)(×)
697,525
(∞)
698
Total
Other
Securities
(cost
$698)
698
Total
Investments
-
98.0%
(identified
cost
$325,479)
373,261
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
52
International
Developed
Markets
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Other
Assets
and
Liabilities,
Net
-
2.0%
7,720
Net
Assets
-
100.0%
380,981
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
53
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Acquisition
Principal
Amount
($)
Cost
per
Unit
Cost
(000)
Fair
Value
(000)
Securities
Date
or
shares
$
$
$
2.6%
ABN
AMRO
Bank
NV
06/26/19
EUR
53,705
17.89
961
648
Adyen
NV
07/25/19
EUR
332
781.08
259
811
Amundi
SA
02/21/19
EUR
15,123
64.83
980
1,332
Cellnex
Telecom
SA
08/07/17
EUR
34,055
38.50
1,311
2,170
Covestro
AG
08/15/19
EUR
35,844
44.13
1,582
2,315
Reliance
Industries,
Ltd.
10/21/20
USD
9,265
56.22
521
524
Scout24
AG
12/17/20
EUR
1,967
83.16
164
166
WH
Group,
Ltd.
06/26/19
HKD
123,000
1.02
125
111
Worldline
SA
02/14/20
EUR
8,621
81.51
703
808
Zalando
SE
12/12/19
EUR
8,822
60.95
538
1,066
9,951
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
Amsterdam
Index
Futures
9
EUR
1,313
07/21
(6)
CAC
40
Euro
Index
Futures
51
EUR
3,318
07/21
(68)
DAX
Index
Futures
7
EUR
2,717
09/21
(43)
EURO
STOXX
50
Index
Futures
48
EUR
1,947
09/21
(42)
FTSE
100
Index
Futures
40
GBP
2,792
09/21
(51)
FTSE/MIB
Index
Futures
7
EUR
875
09/21
(23)
Hang
Seng
Index
Futures
3
HKD
4,295
07/21
(7)
IBEX
35
Index
Futures
9
EUR
791
07/21
(39)
MSCI
Singapore
Index
Futures
6
SGD
213
07/21
1
OMXS30
Index
Futures
38
SEK
8,611
07/21
(10)
S&P/TSX
60
Index
Futures
74
CAD
17,800
09/21
96
SPI
200
Index
Futures
100
AUD
18,058
09/21
(120)
TOPIX
Index
Futures
106
JPY
2,059,579
09/21
(150)
Short
Positions
MSCI
Emerging
Markets
Index
Futures
550
USD
37,532
09/21
132
S&P
500
E-Mini
Index
Futures
88
USD
18,870
09/21
(218)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(548)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
USD
2
JPY
174
07/01/21
—
Bank
of
Montreal
USD
3,067
AUD
3,965
09/15/21
(92)
Bank
of
Montreal
USD
4,035
CAD
4,878
09/15/21
(98)
Bank
of
Montreal
USD
1,157
EUR
948
09/15/21
(32)
Bank
of
Montreal
USD
1,293
GBP
915
09/15/21
(27)
Bank
of
Montreal
USD
4,547
JPY
497,939
09/15/21
(62)
Bank
of
Montreal
USD
1,028
NOK
8,502
09/15/21
(40)
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
54
International
Developed
Markets
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
New
York
USD
3,076
AUD
3,965
09/15/21
(102)
Bank
of
New
York
USD
4,043
CAD
4,878
09/15/21
(108)
Bank
of
New
York
USD
1,160
EUR
948
09/15/21
(34)
Bank
of
New
York
USD
1,295
GBP
915
09/15/21
(29)
Bank
of
New
York
USD
4,560
JPY
497,939
09/15/21
(75)
Bank
of
New
York
USD
1,031
NOK
8,502
09/15/21
(43)
Citigroup
USD
3,067
AUD
3,965
09/15/21
(92)
Citigroup
USD
4,036
CAD
4,878
09/15/21
(102)
Citigroup
USD
1,158
EUR
948
09/15/21
(32)
Citigroup
USD
1,292
GBP
915
09/15/21
(26)
Citigroup
USD
4,548
JPY
497,939
09/15/21
(63)
Citigroup
USD
1,028
NOK
8,502
09/15/21
(40)
JPMorgan
Chase
USD
3,067
AUD
3,965
09/15/21
(92)
JPMorgan
Chase
USD
4,035
CAD
4,878
09/15/21
(98)
JPMorgan
Chase
USD
1,157
EUR
948
09/15/21
(32)
JPMorgan
Chase
USD
1,293
GBP
915
09/15/21
(27)
JPMorgan
Chase
USD
4,547
JPY
497,939
09/15/21
(62)
JPMorgan
Chase
USD
1,028
NOK
8,502
09/15/21
(40)
Royal
Bank
of
Canada
USD
3,078
AUD
3,965
09/15/21
(104)
Royal
Bank
of
Canada
USD
4,042
CAD
4,878
09/15/21
(108)
Royal
Bank
of
Canada
USD
1,160
EUR
948
09/15/21
(34)
Royal
Bank
of
Canada
USD
1,295
GBP
915
09/15/21
(29)
Royal
Bank
of
Canada
USD
4,561
JPY
497,939
09/15/21
(76)
Royal
Bank
of
Canada
USD
1,032
NOK
8,502
09/15/21
(45)
State
Street
USD
369
SEK
3,050
09/15/21
(13)
State
Street
CHF
2,800
USD
3,133
09/15/21
101
State
Street
DKK
13,240
USD
2,173
09/15/21
59
State
Street
HKD
2,630
USD
339
09/15/21
—
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(1,697)
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
55
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Common
Stocks
Argentina
$
160
$
—
$
—
$
—
$
160
—*
Australia
—
6,139
—
—
6,139
1.6
Austria
—
1,192
—
—
1,192
0.3
Belgium
—
1,424
—
—
1,424
0.4
Brazil
2,048
—
—
—
2,048
0.5
Canada
18,848
—
—
—
18,848
4.9
China
4,155
2,516
—
—
6,671
1.8
Denmark
—
6,048
—
—
6,048
1.6
Finland
—
7,450
—
—
7,450
2.0
France
447
34,490
—
—
34,937
9.2
Germany
—
16,980
—
—
16,980
4.5
Hong
Kong
—
10,028
—
—
10,028
2.6
India
—
5,004
—
—
5,004
1.3
Indonesia
—
342
—
—
342
0.1
Ireland
549
5,372
—
—
5,921
1.6
Israel
—
229
—
—
229
0.1
Italy
—
7,487
—
—
7,487
2.0
Japan
—
63,663
—
—
63,663
16.7
Jersey
—
271
—
—
271
0.1
Luxembourg
—
3,994
—
—
3,994
1.0
Macao
—
588
—
—
588
0.2
Malaysia
—
344
—
—
344
0.1
Mexico
3,137
—
—
—
3,137
0.8
Netherlands
—
19,111
—
—
19,111
5.0
New
Zealand
—
2,363
—
—
2,363
0.6
Norway
—
1,950
—
—
1,950
0.5
Russia
628
1,316
—
—
1,944
0.5
Singapore
—
2,978
—
—
2,978
0.8
South
Africa
309
2,434
—
—
2,743
0.7
South
Korea
879
8,374
—
—
9,253
2.4
Spain
—
7,227
—
—
7,227
1.9
Sweden
—
6,188
—
—
6,188
1.6
Switzerland
—
29,525
—
—
29,525
7.7
Taiwan
3,313
6,832
—
—
10,145
2.7
Thailand
—
657
—
—
657
0.2
Turkey
—
456
—
—
456
0.1
United
Kingdom
1,416
40,884
—
—
42,300
11.1
United
States
11,725
544
—
—
12,269
3.2
Preferred
Stocks
—
9,146
—
—
9,146
2.4
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
56
International
Developed
Markets
Fund
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Warrants
and
Rights
4
—
—
—
4
—*
Short-Term
Investments
—
—
—
11,399
11,399
3.0
Other
Securities
—
—
—
698
698
0.2
Total
Investments
47,618
313,546
—
12,097
373,261
98.0
Other
Assets
and
Liabilities,
Net
2.0
100.0
Other
Financial
Instruments
Assets
Futures
Contracts
2
29
—
—
—
2
29
0.1
Foreign
Currency
Exchange
Contracts
—
1
60
—
—
1
60
—
*
A
Liabilities
Futures
Contracts
(777)
—
—
—
(777)
(0.2)
Foreign
Currency
Exchange
Contracts
—
(1,85
7
)
—
—
(1,85
7
)
(0.5)
Total
Other
Financial
Instruments
**
$
(548)
$
(1,697)
$
—
$
—
$
(2,24
5
)
*
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
June
30,
2021,
see
note
2
in
the
Notes
to
Financial
Statements.
Amounts
in
thousands
Sector
Exposure
Fair
Value
$
Common
Stocks
Consumer
Discretionary
..........................................................
50,449
Consumer
Staples
...................................................................
21,006
Energy
....................................................................................
19,417
Financial
Services
...................................................................
82,849
Health
Care
.............................................................................
26,408
Materials
and
Processing
........................................................
40,684
Producer
Durables
..................................................................
48,260
Technology
..............................................................................
48,287
Utilities
...................................................................................
14,654
Preferred
Stocks
Consumer
Discretionary
..........................................................
4,061
Consumer
Staples
...................................................................
196
Technology
..............................................................................
4,889
Warrants
and
Rights
....................................................................
4
Russell
Investment
Funds
International
Developed
Markets
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
57
Short-Term
Investments
................................................................
11,399
Other
Securities
...........................................................................
698
Total
Investments
....................................................................
373,261
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
58
International
Developed
Markets
Fund
Russell
Investment
Funds
International
Developed
Markets
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
160
Variation
margin
on
futures
contracts*
229
—
Total
$
229
$
160
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
777
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
1,857
Total
$
777
$
1,857
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
2,641
$
—
Foreign
currency
exchange
contracts
—
932
Total
$
2,641
$
932
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
820
$
—
Foreign
currency
exchange
contracts
—
(2,721)
Total
$
820
$
(2,721)
*
Includes
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
59
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
669
$
—
$
669
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
160
—
160
Total
Financial
and
Derivative
Assets
829
—
829
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
829
$
—
$
829
Financial
Assets,
Derivative
Assets,
and
Collateral
Held
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Received^
Net
Amount
Barclays
$
320
$
—
$
320
$
—
Citigroup
349
—
349
—
State
Street
160
13
—
147
Total
$
829
$
13
$
669
$
147
Russell
Investment
Funds
International
Developed
Markets
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
60
International
Developed
Markets
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
1,857
$
—
$
1,857
Total
Financial
and
Derivative
Liabilities
1,857
—
1,857
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
1,857
$
—
$
1,857
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
Montreal
$
351
$
—
$
—
$
351
Bank
of
New
York
391
—
—
391
Citigroup
355
—
—
355
JPMorgan
Chase
352
—
—
352
Royal
Bank
of
Canada
395
—
—
395
State
Street
13
13
—
—
Total
$
1,857
$
13
$
—
$
1,844
*
Fair
value
of
securities
on
loan
as
reported
in
the
footnotes
to
the
Statement
of
Assets
and
Liabilities.
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
61
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
325,479
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
373,261
Foreign
currency
holdings(^)
.........................................................................................................................................................
1,779
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
160
Receivables:
Dividends
and
interest
.......................................................................................................................................................
526
Fund
shares
sold
................................................................................................................................................................
67
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
993
From
broker(a)
...................................................................................................................................................................
8,002
Prepaid
expenses
...........................................................................................................................................................................
2
Total
assets
.................................................................................................................................................
384,790
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
1
Fund
shares
redeemed
.......................................................................................................................................................
232
Accrued
fees
to
affiliates
....................................................................................................................................................
300
Other
accrued
expenses
.....................................................................................................................................................
177
Variation
margin
on
futures
contracts
.................................................................................................................................
544
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
1,857
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
698
Total
liabilities
.............................................................................................................................................
3,809
Net
Assets
............................................................................................................................................................
$
380,981
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
62
International
Developed
Markets
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
64,704
Shares
of
beneficial
interest
...........................................................................................................................................................
283
Additional
paid-in
capital
..............................................................................................................................................................
315,994
Net
Assets
............................................................................................................................................................
$
380,981
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
13.45
Net
assets
...............................................................................................................................................................................
$
380,981,387
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
28,317,405
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
1,796
(*)
Securities
on
loan
included
in
investments
$
669
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
12,097
(a)
Receivable
from
Broker
for
Futures
$
8,002
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
International
Developed
Markets
Fund
63
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
7,13
4
Dividends
from
affiliated
funds
.........................................................................................................................................
4
Securities
lending
income
(net)
.........................................................................................................................................
11
Less
foreign
taxes
withheld
...............................................................................................................................................
(700)
Total
investment
income
...............................................................................................................................................................
6,449
Expenses
Advisory
fees
....................................................................................................................................................................
1,782
Administrative
fees
...........................................................................................................................................................
99
Custodian
fees
...................................................................................................................................................................
66
Transfer
agent
fees
............................................................................................................................................................
9
Professional
fees
...............................................................................................................................................................
50
Trustees’
fees
....................................................................................................................................................................
7
Printing
fees
......................................................................................................................................................................
26
Miscellaneous
...................................................................................................................................................................
6
Expenses
before
reductions
..............................................................................................................................................
2,045
Expense
reductions
...........................................................................................................................................................
(6)
Net
expenses
.................................................................................................................................................................................
2,039
Net
investment
income
(loss)
........................................................................................................................................................
4,410
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
.......................................................................................................................................................................
20,401
Futures
contracts
..............................................................................................................................................................
2,641
Foreign
currency
exchange
contracts
................................................................................................................................
932
Foreign
currency-related
transactions
...............................................................................................................................
20
Net
realized
gain
(loss)
..................................................................................................................................................................
23,994
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
......................................................................................................................................................................
19,276
Futures
contracts
..............................................................................................................................................................
820
Foreign
currency
exchange
contracts
................................................................................................................................
(2,721)
Foreign
currency-related
transactions
...............................................................................................................................
(150)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
17,225
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
41,219
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
45,629
Russell
Investment
Funds
International
Developed
Markets
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
64
International
Developed
Markets
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
4,410
$
4,067
Net
realized
gain
(loss)
......................................................................................................................
23,994
8,875
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
17,225
5,697
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
45,629
18,639
Distributions
To
shareholders
.................................................................................................................................
(5,013)
(4,239)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(5,013)
(4,239)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(55,15
3
)
(15,988)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
(14,53
7
)
(1,588)
Net
Assets
Beginning
of
period
.................................................................................................................................
395,518
397,106
End
of
period
..........................................................................................................................................
$
380,981
$
395,518
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
580
$
7,630
1,807
$
17,388
Proceeds
from
reinvestment
of
distributions
396
5,013
362
4,239
Payments
for
shares
redeemed
(5,126)
(67,796)
(3,587)
(37,615)
Total
increase
(decrease)
(4,150)
$
(55,15
3
)
(1,418)
$
(15,988)
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.
66
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
June
30,
2021(1)
12.18
.14
1.29
1.43
(.16)
—
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
67
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)(g)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(b)(e)(g)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(
e)
%
Portfolio
Turnover
Rate
(d)
(.16)
13.45
11.80
380,981
1.03
1.03
2.23
12
(.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.
68
International
Developed
Markets
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
282,326
Administration
fees
16,041
Transfer
agent
fees
1,412
Trustee
fees
359
$
300,138
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
U.S.
Cash
Management
Fund
$
9,583
$
104,900
$
103,084
$
—
$
—
$
11,399
$
4
$
—
U.S.
Cash
Collateral
Fund
601
11,557
11,460
—
—
698
—
—
$
10,184
$
116,457
$
114,544
$
—
$
—
$
12,097
$
4
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
330,155,657
$
60,607,952
$
(19,747,237)
$
40,860,715
Russell
Investment
Funds
Strategic
Bond
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
Strategic
Bond
Fund
69
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2021
$
986
.60
$
1,021
.47
Expenses
Paid
During
Period*
$
3
.30
$
3
.36
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.67%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
70
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Long-Term
Investments
-
83.1%
Asset-Backed
Securities
-
6.3%
AMSR
Trust
Series
2021-SFR2
Class
A
1.527%
due
08/17/26
(Þ)
651
651
Amur
Equipment
Finance
Receivables
IX
LLC
Series
2021-1A
Class
C
1.750%
due
06/21/27
(Þ)
735
734
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
Series
2016-1A
Class
AA
2.487%
due
12/16/41
(~)(Ê)(Þ)
572
576
Chase
Auto
Credit
Liked
Notes
Series
2021-1
Class
B
0.875%
due
09/25/28
(Þ)
4,495
4,498
CLI
Funding
VI
LLC
Series
2020-3A
Class
A
2.070%
due
10/18/45
(Þ)
1,557
1,569
Conseco
Financial
Corp.
Series
1998-2
Class
M1
6.940%
due
12/01/28
(~)(Ê)
1,041
1,069
Countrywide
Asset-Backed
Certificates
Series
2007-4
Class
A4W
4.640%
due
04/25/47
1,527
1,600
FirstKey
Homes
Trust
Series
2020-SFR1
Class
A
1.339%
due
09/17/25
(Þ)
880
880
Series
2020-SFR2
Class
A
1.266%
due
10/19/37
(Þ)
3,397
3,392
FNA
VI
LLC
Series
2021-1A
Class
A
1.350%
due
01/10/32
(~)(Ê)(Þ)
710
709
Goldentree
Loan
Management
US
CLO
7,
Ltd.
Series
2021-7A
Class
AR
1.258%
due
04/20/34
(USD
3
Month
LIBOR
+
1.070%)(Ê)(Þ)
1,147
1,147
Greenpoint
Manufactured
Housing
Contract
Trust
Series
2000-4
Class
A3
2.190%
due
08/21/31
(USD
1
Month
LIBOR
+
2.000%)(Ê)
675
675
Invitation
Homes
Trust
Series
2017-SFR2
Class
A
3.153%
due
12/17/36
(USD
1
Month
LIBOR
+
0.850%)(Ê)(Þ)
1,362
1,363
Series
2018-SFR2
Class
A
3.207%
due
06/17/37
(USD
1
Month
LIBOR
+
0.900%)(Ê)
1,454
1,458
Mill
City
Mortgage
Trust
Series
2015-1
Class
B1
3.790%
due
06/25/56
(~)(Ê)(Þ)
1,492
1,596
Navient
Private
Education
Refi
Loan
Trust
Series
2020-HA
Class
A
1.310%
due
01/15/69
(Þ)
783
789
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2021-A
Class
A
0.840%
due
05/15/69
(Þ)
2,360
2,356
Series
2021-BA
Class
A
0.940%
due
07/15/69
(Þ)
1,540
1,540
Series
2021-CA
Class
A
1.060%
due
10/15/69
(Þ)
2,212
2,217
Navient
Student
Loan
Trust
Series
2020-EA
Class
A
1.690%
due
05/15/69
(Þ)
3,270
3,322
Series
2020-FA
Class
A
1.220%
due
07/15/69
(Þ)
604
607
Octane
Receivables
Trust
Series
2021-1A
Class
A
0.930%
due
03/22/27
(Þ)
2,080
2,081
OneMain
Financial
Issuance
Trust
Series
2019-2A
Class
A
3.140%
due
10/14/36
(Þ)
500
537
Series
2020-1A
Class
A
3.840%
due
05/14/32
(Þ)
1,242
1,296
Series
2020-2A
Class
A
1.750%
due
09/14/35
(Þ)
5,679
5,774
Series
2021-1A
Class
A1
1.550%
due
06/16/36
(Þ)
4,696
4,714
Option
One
Mortgage
Loan
Trust
Series
2007-FXD1
Class
3A4
5.860%
due
01/25/37
(~)(Ê)
603
614
Preston
Ridge
Partners
Mortgage
LLC
Series
2020-1A
Class
A1
2.981%
due
02/25/25
(~)(Ê)(Þ)
2,124
2,134
Rockfield
Park
1.000%
due
07/16/34
(Þ)
1,391
1,649
SoFi
Professional
Loan
Program
Trust
Series
2020-C
Class
AFX
1.950%
due
02/15/46
(Þ)
1,142
1,159
SpringCastle
America
Funding
LLC
Series
2020-AA
Class
A
1.970%
due
09/25/37
(Þ)
4,513
4,558
TAL
Advantage
VII
LLC
Series
2020-1A
Class
A
2.050%
due
09/20/45
(Þ)
2,081
2,097
Towd
Point
Mortgage
Trust
Series
2015-5
Class
M1
3.500%
due
05/25/55
(~)(Ê)(Þ)
1,755
1,803
Series
2016-4
Class
B1
3.848%
due
07/25/56
(~)(Ê)(Þ)
920
1,003
Series
2020-MH1
Class
A1
2.250%
due
02/25/60
(~)(Ê)(Þ)
2,660
2,692
64,859
Corporate
Bonds
and
Notes
-
20.4%
3M
Co.
2.875%
due
10/15/27
951
1,034
3.700%
due
04/15/50
30
35
Abbott
Laboratories
4.750%
due
11/30/36
824
1,061
4.900%
due
11/30/46
90
123
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
71
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
AbbVie,
Inc.
3.600%
due
05/14/25
60
65
Series
WI
2.600%
due
11/21/24
440
464
3.800%
due
03/15/25
60
66
2.950%
due
11/21/26
670
720
3.200%
due
11/21/29
770
836
4.550%
due
03/15/35
10
12
4.050%
due
11/21/39
710
825
4.250%
due
11/21/49
60
72
Activision
Blizzard,
Inc.
2.500%
due
09/15/50
110
99
Adobe,
Inc.
2.150%
due
02/01/27
590
618
Aetna,
Inc.
2.750%
due
11/15/22
50
51
Agilent
Technologies,
Inc.
2.300%
due
03/12/31
350
350
Air
Lease
Corp.
0.700%
due
02/15/24
570
568
3.375%
due
07/01/25
480
516
1.875%
due
08/15/26
350
350
Alexandria
Real
Estate
Equities,
Inc.
2.000%
due
05/18/32
210
205
3.000%
due
05/18/51
150
147
Allstate
Corp.
(The)
Series
B
5.750%
due
08/15/53
(USD
3
Month
LIBOR
+
2.938%)(Ê)
752
819
Ally
Financial,
Inc.
8.000%
due
11/01/31
554
778
Alphabet,
Inc.
1.998%
due
08/15/26
865
905
0.800%
due
08/15/27
10
10
1.100%
due
08/15/30
130
123
1.900%
due
08/15/40
130
118
2.050%
due
08/15/50
140
124
2.250%
due
08/15/60
100
88
Altria
Group,
Inc.
4.400%
due
02/14/26
222
251
4.800%
due
02/14/29
50
58
2.450%
due
02/04/32
510
493
10.200%
due
02/06/39
22
38
3.400%
due
02/04/41
460
439
5.375%
due
01/31/44
643
764
3.875%
due
09/16/46
70
70
Amazon.com,
Inc.
1.200%
due
06/03/27
1,092
1,088
2.100%
due
05/12/31
350
356
2.500%
due
06/03/50
140
132
3.100%
due
05/12/51
170
179
Series
WI
3.875%
due
08/22/37
50
60
Ambac
Assurance
Corp.
5.100%
due
12/31/99
(Þ)
1
1
American
Airlines
Group,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.500%
due
04/20/26
(Þ)
160
169
5.750%
due
04/20/29
(Þ)
140
151
American
Express
Co.
2.500%
due
07/30/24
60
63
American
International
Group,
Inc.
4.750%
due
04/01/48
70
89
American
Tower
Corp.
5.000%
due
02/15/24
805
893
Americo
Life,
Inc.
3.450%
due
04/15/31
(Þ)
70
71
AmFam
Holdings,
Inc.
2.805%
due
03/11/31
(Þ)
180
184
3.833%
due
03/11/51
(Þ)
130
140
Amgen,
Inc.
4.400%
due
05/01/45
100
121
Series
WI
4.663%
due
06/15/51
50
64
Andeavor
LLC
Series
WI
5.125%
due
12/15/26
225
257
Anthem,
Inc.
4.101%
due
03/01/28
50
57
4.375%
due
12/01/47
20
24
4.850%
due
08/15/54
783
999
Aon
Corp.
8.205%
due
01/01/27
172
224
Apache
Corp.
4.375%
due
10/15/28
50
53
4.750%
due
04/15/43
150
156
4.250%
due
01/15/44
120
117
Apollo
Commercial
Real
Estate
Finance,
Inc.
4.750%
due
08/23/22
770
773
Apple,
Inc.
4.500%
due
02/23/36
691
871
4.650%
due
02/23/46
100
133
2.650%
due
05/11/50
150
147
Applied
Materials,
Inc.
3.300%
due
04/01/27
932
1,030
Ares
Capital
Corp.
3.250%
due
07/15/25
914
961
Arthur
J
Gallagher
&
Co.
2.500%
due
05/20/31
360
364
AT&T,
Inc.
3.800%
due
02/15/27
150
167
1.650%
due
02/01/28
200
199
2.250%
due
02/01/32
40
39
2.550%
due
12/01/33
(Þ)
782
775
4.500%
due
05/15/35
150
176
3.100%
due
02/01/43
270
265
4.350%
due
06/15/45
26
30
3.550%
due
09/15/55
(Þ)
83
83
3.800%
due
12/01/57
(Þ)
240
250
3.500%
due
02/01/61
220
217
Series
WI
4.300%
due
02/15/30
70
81
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
72
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Aviation
Capital
Group
LLC
5.500%
due
12/15/24
(Þ)
170
192
Avnet,
Inc.
4.875%
due
12/01/22
410
434
Bank
of
America
Corp.
4.000%
due
01/22/25
45
49
4.271%
due
07/23/29
(USD
3
Month
LIBOR
+
1.310%)(Ê)
110
126
3.974%
due
02/07/30
(USD
3
Month
LIBOR
+
1.210%)(Ê)
500
567
2.884%
due
10/22/30
(USD
3
Month
LIBOR
+
1.190%)(Ê)
200
211
2.592%
due
04/29/31
(SOFR
+
2.150%)(Ê)
140
144
1.922%
due
10/24/31
(SOFR
+
1.370%)(Ê)
870
848
2.687%
due
04/22/32
(SOFR
+
1.320%)(Ê)
430
442
2.676%
due
06/19/41
(SOFR
+
1.930%)(Ê)
90
87
3.311%
due
04/22/42
(SOFR
+
1.580%)(Ê)
500
529
5.000%
due
01/21/44
555
738
4.330%
due
03/15/50
(USD
3
Month
LIBOR
+
1.520%)(Ê)
30
37
4.083%
due
03/20/51
(USD
3
Month
LIBOR
+
3.150%)(Ê)
330
394
Series
GMTN
4.450%
due
03/03/26
30
34
3.500%
due
04/19/26
80
88
Bank
of
America
NA
Series
BKNT
6.000%
due
10/15/36
734
1,026
Becton
Dickinson
and
Co.
3.734%
due
12/15/24
687
748
4.685%
due
12/15/44
8
10
Bed
Bath
&
Beyond,
Inc.
3.749%
due
08/01/24
270
279
Berkshire
Hathaway
Energy
Co.
Series
WI
4.050%
due
04/15/25
699
776
Berkshire
Hathaway
Finance
Corp.
2.850%
due
10/15/50
1,044
1,041
Berkshire
Hathaway,
Inc.
3.125%
due
03/15/26
684
748
Berry
Petroleum
Corp.
7.000%
due
02/15/26
(Þ)
490
497
Boardwalk
Pipelines,
LP
4.800%
due
05/03/29
710
817
Boeing
Co.
(The)
4.875%
due
05/01/25
220
247
2.196%
due
02/04/26
870
878
3.100%
due
05/01/26
20
21
2.700%
due
02/01/27
40
41
2.800%
due
03/01/27
30
31
3.200%
due
03/01/29
120
126
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.150%
due
05/01/30
310
367
3.250%
due
02/01/35
160
162
5.705%
due
05/01/40
160
206
3.750%
due
02/01/50
210
217
5.805%
due
05/01/50
100
135
3.950%
due
08/01/59
290
303
Bon
Secours
Mercy
Health,
Inc.
3.464%
due
06/01/30
90
99
BP
Capital
Markets
America,
Inc.
3.410%
due
02/11/26
200
219
3.000%
due
02/24/50
860
831
Brighthouse
Financial,
Inc.
Series
WI
4.700%
due
06/22/47
339
377
Bristol-Myers
Squibb
Co.
2.350%
due
11/13/40
230
221
Series
WI
3.900%
due
02/20/28
380
435
3.400%
due
07/26/29
170
191
5.000%
due
08/15/45
171
234
Broadcom,
Inc.
Series
WI
5.000%
due
04/15/30
820
967
4.300%
due
11/15/32
320
364
Broadridge
Financial
Solutions,
Inc.
3.400%
due
06/27/26
863
946
Burlington
Northern
Santa
Fe
LLC
4.400%
due
03/15/42
100
124
4.550%
due
09/01/44
461
589
Burlington
Resources
LLC
5.950%
due
10/15/36
694
956
Cameron
LNG
LLC
3.701%
due
01/15/39
(Þ)
70
78
Capital
One
Bank
USA
NA
3.375%
due
02/15/23
846
885
Capital
One
Financial
Corp.
3.500%
due
06/15/23
884
935
Carrier
Global
Corp.
Series
WI
3.577%
due
04/05/50
40
42
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
5.125%
due
05/01/27
(Þ)
160
168
4.500%
due
08/15/30
(Þ)
10
10
Series
WI
4.500%
due
05/01/32
480
497
Centene
Corp.
3.000%
due
10/15/30
120
123
Series
WI
4.250%
due
12/15/27
80
84
4.625%
due
12/15/29
270
297
3.375%
due
02/15/30
260
272
CenterPoint
Energy
Houston
Electric
LLC
4.500%
due
04/01/44
190
245
Charles
Schwab
Corp.
(The)
2.000%
due
03/20/28
140
144
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
73
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
H
4.000%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
10
Year
+
3.079%)(Ê)(ƒ)
240
246
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
5.050%
due
03/30/29
120
142
5.375%
due
04/01/38
80
98
3.500%
due
06/01/41
150
151
5.750%
due
04/01/48
350
445
3.850%
due
04/01/61
60
59
Series
WI
4.908%
due
07/23/25
120
136
6.384%
due
10/23/35
20
27
6.484%
due
10/23/45
639
880
6.834%
due
10/23/55
20
29
Cheniere
Corpus
Christi
Holdings
LLC
Series
WI
5.125%
due
06/30/27
719
836
Chevron
Corp.
0.426%
due
08/11/23
891
892
2.954%
due
05/16/26
70
76
5.250%
due
11/15/43
10
14
4.950%
due
08/15/47
40
54
3.078%
due
05/11/50
10
10
2.343%
due
08/12/50
130
117
CHS/Community
Health
Systems,
Inc.
6.875%
due
04/15/29
(Þ)
140
147
Cigna
Corp.
2.400%
due
03/15/30
110
112
3.200%
due
03/15/40
490
509
Series
WI
4.375%
due
10/15/28
460
535
4.800%
due
08/15/38
220
274
6.125%
due
11/15/41
335
479
Cimarex
Energy
Co.
4.375%
due
06/01/24
150
163
3.900%
due
05/15/27
260
287
4.375%
due
03/15/29
330
375
Cintas
Corp.
No.
2
3.700%
due
04/01/27
70
78
Cisco
Systems,
Inc.
3.625%
due
03/04/24
832
900
CIT
Bank
NA
Series
BKNT
2.969%
due
09/27/25
(SOFR
+
1.715%)(Ê)
812
850
Citigroup,
Inc.
3.106%
due
04/08/26
(SOFR
+
2.842%)(Ê)
100
107
2.976%
due
11/05/30
(SOFR
+
1.422%)(Ê)
400
424
2.572%
due
06/03/31
(SOFR
+
2.107%)(Ê)
220
226
2.561%
due
05/01/32
(SOFR
+
1.167%)(Ê)
920
937
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
8.125%
due
07/15/39
370
639
4.650%
due
07/23/48
838
1,096
Cleveland
Electric
Illuminating
Co.
(The)
3.500%
due
04/01/28
(Þ)
470
502
Clorox
Co.
(The)
1.800%
due
05/15/30
220
216
Coca-Cola
Co.
(The)
1.450%
due
06/01/27
945
954
1.375%
due
03/15/31
90
86
4.125%
due
03/25/40
120
143
2.500%
due
06/01/40
10
10
Columbia
Pipeline
Group,
Inc.
Series
WI
5.800%
due
06/01/45
317
428
Comcast
Cable
Communications
Holdings,
Inc.
9.455%
due
11/15/22
583
656
Comcast
Corp.
3.300%
due
04/01/27
867
956
4.150%
due
10/15/28
110
127
4.250%
due
10/15/30
120
141
7.050%
due
03/15/33
150
218
6.500%
due
11/15/35
90
131
6.550%
due
07/01/39
200
299
3.250%
due
11/01/39
10
11
3.750%
due
04/01/40
10
11
3.400%
due
07/15/46
20
21
4.000%
due
03/01/48
80
94
4.700%
due
10/15/48
30
39
4.950%
due
10/15/58
80
111
CommonSpirit
Health
2.782%
due
10/01/30
80
83
3.910%
due
10/01/50
90
99
Commonwealth
Edison
Co.
6.450%
due
01/15/38
120
175
Comstock
Resources,
Inc.
5.875%
due
01/15/30
(Þ)
330
337
ConocoPhillips
Co.
3.750%
due
10/01/27
(Þ)
946
1,063
Constellation
Brands,
Inc.
4.750%
due
11/15/24
40
45
Consumers
Energy
Co.
2.500%
due
05/01/60
110
99
Continental
Resources,
Inc.
4.500%
due
04/15/23
120
125
Corning,
Inc.
3.900%
due
11/15/49
100
112
Costco
Wholesale
Corp.
1.375%
due
06/20/27
901
907
1.600%
due
04/20/30
120
118
Covey
Park
Energy
LLC
7.500%
due
05/15/25
(Þ)
180
187
Crown
Castle
International
Corp.
5.200%
due
02/15/49
792
1,031
CVS
Health
Corp.
2.625%
due
08/15/24
70
74
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
74
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.625%
due
04/01/27
40
44
4.300%
due
03/25/28
260
299
3.250%
due
08/15/29
70
76
3.750%
due
04/01/30
110
123
4.780%
due
03/25/38
260
320
4.125%
due
04/01/40
40
46
2.700%
due
08/21/40
310
300
5.050%
due
03/25/48
385
500
DCP
Midstream
Operating,
LP
6.450%
due
11/03/36
(Þ)
50
59
Series
A
7.375%
due
12/31/99
(USD
3
Month
LIBOR
+
5.148%)(Ê)(ƒ)
60
59
Deere
&
Co.
3.750%
due
04/15/50
40
48
Dell
International
LLC
/
EMC
Corp.
Series
WI
8.100%
due
07/15/36
80
122
Delta
Air
Lines,
Inc.
3.800%
due
04/19/23
30
31
7.000%
due
05/01/25
(Þ)
1,032
1,205
4.500%
due
10/20/25
(Þ)
180
193
7.375%
due
01/15/26
110
129
4.750%
due
10/20/28
(Þ)
300
334
3.750%
due
10/28/29
60
60
Devon
Energy
Corp.
5.850%
due
12/15/25
140
164
5.250%
due
10/15/27
(Þ)
19
20
5.875%
due
06/15/28
(Þ)
153
170
4.500%
due
01/15/30
(Þ)
220
242
5.600%
due
07/15/41
100
124
4.750%
due
05/15/42
170
192
5.000%
due
06/15/45
410
482
Diamondback
Energy,
Inc.
3.500%
due
12/01/29
340
364
4.400%
due
03/24/51
160
180
Discover
Bank
Series
BKNT
4.682%
due
08/09/28
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
1.730%)(Ê)
950
1,009
DISH
DBS
Corp.
Series
WI
7.750%
due
07/01/26
10
11
Dominion
Energy,
Inc.
Series
C
3.375%
due
04/01/30
80
87
DR
Horton,
Inc.
2.500%
due
10/15/24
280
293
Duke
Energy
Carolinas
LLC
6.100%
due
06/01/37
190
265
4.000%
due
09/30/42
100
118
Duke
Energy
Indiana
LLC
Series
YYY
3.250%
due
10/01/49
80
85
Eaton
Corp.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.150%
due
11/02/42
20
24
eBay,
Inc.
2.600%
due
05/10/31
300
305
3.650%
due
05/10/51
40
42
Edison
International
4.950%
due
04/15/25
160
177
4.125%
due
03/15/28
718
764
Series
A
5.375%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.698%)(Ê)(ƒ)
220
222
El
Paso
Natural
Gas
Co.
LLC
7.500%
due
11/15/26
350
448
Electronic
Arts,
Inc.
1.850%
due
02/15/31
150
145
2.950%
due
02/15/51
40
39
Enbridge
Energy
Partners,
LP
7.375%
due
10/15/45
484
759
Endo
Luxembourg
Finance
Co.
SARL
6.125%
due
04/01/29
(Þ)
110
108
Energy
Transfer
Operating,
LP
5.875%
due
01/15/24
653
724
7.600%
due
02/01/24
50
57
4.500%
due
04/15/24
290
316
2.900%
due
05/15/25
30
32
5.250%
due
04/15/29
30
35
3.750%
due
05/15/30
140
152
6.125%
due
12/15/45
60
76
6.250%
due
04/15/49
30
39
Series
10Y
4.950%
due
06/15/28
40
46
Series
H
6.500%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.694%)(Ê)(ƒ)
360
367
Energy
Transfer,
LP
5.500%
due
06/01/27
280
328
6.625%
due
12/31/99
(USD
3
Month
LIBOR
+
4.155%)(Ê)(ƒ)
110
108
6.750%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.134%)(Ê)(ƒ)
280
282
7.125%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.306%)(Ê)(ƒ)
430
444
EnLink
Midstream
LLC
5.625%
due
01/15/28
(Þ)
280
296
Enterprise
Products
Operating
LLC
3.900%
due
02/15/24
30
32
4.150%
due
10/16/28
150
172
2.800%
due
01/31/30
100
106
7.550%
due
04/15/38
20
31
5.700%
due
02/15/42
40
54
4.850%
due
03/15/44
60
73
3.700%
due
01/31/51
140
150
3.950%
due
01/31/60
160
178
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
75
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.375%
due
02/15/78
(USD
3
Month
LIBOR
+
2.570%)(Ê)
330
344
Series
D
6.875%
due
03/01/33
844
1,206
EOG
Resources,
Inc.
4.150%
due
01/15/26
40
45
4.375%
due
04/15/30
190
225
4.950%
due
04/15/50
50
67
EQT
Corp.
3.000%
due
10/01/22
320
327
3.125%
due
05/15/26
(Þ)
30
31
3.900%
due
10/01/27
160
171
5.000%
due
01/15/29
10
11
7.000%
due
02/01/30
100
130
3.625%
due
05/15/31
(Þ)
30
31
Equities
Corp.
6.125%
due
02/01/25
10
12
Exelon
Corp.
Series
WI
3.950%
due
06/15/25
489
538
Exelon
Generation
Co.
LLC
5.600%
due
06/15/42
615
720
Expedia
Group,
Inc.
Series
WI
4.625%
due
08/01/27
839
948
Exxon
Mobil
Corp.
3.482%
due
03/19/30
120
135
4.227%
due
03/19/40
230
275
4.114%
due
03/01/46
40
47
4.327%
due
03/19/50
10
12
3.452%
due
04/15/51
50
54
FedEx
Corp.
4.500%
due
02/01/65
226
261
Fidelity
&
Guaranty
Life
Holdings,
Inc.
5.500%
due
05/01/25
(Þ)
50
58
FirstEnergy
Corp.
Series
B
4.250%
due
03/15/23
100
106
3.900%
due
07/15/27
180
196
Series
C
7.375%
due
11/15/31
190
260
4.850%
due
07/15/47
50
60
FirstMerit
Corp.
4.350%
due
02/04/23
966
1,022
Fiserv,
Inc.
2.250%
due
06/01/27
917
951
Florida
Power
&
Light
Co.
3.150%
due
10/01/49
40
43
Ford
Motor
Credit
Co.
LLC
4.000%
due
11/13/30
200
210
Series
FXD
3.350%
due
11/01/22
200
205
Fortinet,
Inc.
2.200%
due
03/15/31
300
299
Fox
Corp.
Series
WI
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.476%
due
01/25/39
270
349
General
Dynamics
Corp.
3.625%
due
04/01/30
100
113
4.250%
due
04/01/40
220
269
4.250%
due
04/01/50
60
77
General
Electric
Co.
Series
GMTN
6.875%
due
01/10/39
163
244
Series
MTNA
6.750%
due
03/15/32
619
858
General
Motors
Co.
4.875%
due
10/02/23
671
731
5.400%
due
10/02/23
40
44
6.125%
due
10/01/25
100
118
6.250%
due
10/02/43
110
152
6.750%
due
04/01/46
100
144
General
Motors
Financial
Co.,
Inc.
4.250%
due
05/15/23
10
11
4.150%
due
06/19/23
765
812
Genting
New
York
LLC
3.300%
due
02/15/26
(Þ)
440
444
Gilead
Sciences,
Inc.
5.650%
due
12/01/41
50
69
4.750%
due
03/01/46
100
127
GLP
Capital,
LP
/
GLP
Financing
II,
Inc.
5.375%
due
04/15/26
653
752
Goldman
Sachs
Group,
Inc.
(The)
4.250%
due
10/21/25
140
157
3.500%
due
11/16/26
90
98
3.691%
due
06/05/28
(USD
3
Month
LIBOR
+
1.510%)(Ê)
200
221
4.223%
due
05/01/29
(USD
3
Month
LIBOR
+
1.301%)(Ê)
50
57
3.800%
due
03/15/30
410
461
5.150%
due
05/22/45
140
187
Halliburton
Co.
4.850%
due
11/15/35
60
71
5.000%
due
11/15/45
20
24
HCA,
Inc.
5.125%
due
06/15/39
50
62
5.500%
due
06/15/47
443
577
Hershey
Co.
(The)
1.700%
due
06/01/30
160
159
Hilton
Domestic
Operating
Co.,
Inc.
5.375%
due
05/01/25
(Þ)
120
126
5.750%
due
05/01/28
(Þ)
40
43
Home
Depot,
Inc.
(The)
2.500%
due
04/15/27
867
924
3.900%
due
12/06/28
10
12
2.700%
due
04/15/30
80
86
3.300%
due
04/15/40
60
66
3.350%
due
04/15/50
90
99
HSBC
Holdings
PLC
7.200%
due
07/15/97
457
795
Humana,
Inc.
3.850%
due
10/01/24
50
54
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
76
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.500%
due
04/01/25
20
22
3.950%
due
03/15/27
200
224
4.625%
due
12/01/42
868
1,066
4.950%
due
10/01/44
20
26
Intel
Corp.
4.950%
due
03/25/60
110
155
Series
WI
3.734%
due
12/08/47
10
11
Intercontinental
Exchange,
Inc.
Series
FXD
0.700%
due
06/15/23
945
949
International
Business
Machines
Corp.
3.300%
due
01/27/27
866
951
International
Lease
Finance
Corp.
5.875%
due
08/15/22
410
434
International
Paper
Co.
7.300%
due
11/15/39
669
1,035
Jefferies
Financial
Group
Inc.
6.625%
due
10/23/43
761
1,038
Jefferies
Group
LLC
6.500%
due
01/20/43
635
876
Johnson
&
Johnson
3.375%
due
12/05/23
111
119
4.950%
due
05/15/33
306
403
2.100%
due
09/01/40
210
199
2.450%
due
09/01/60
160
151
JPMorgan
Chase
&
Co.
2.182%
due
06/01/28
(SOFR
+
1.890%)(Ê)
788
807
4.203%
due
07/23/29
(USD
3
Month
LIBOR
+
1.260%)(Ê)
40
46
4.452%
due
12/05/29
(USD
3
Month
LIBOR
+
1.330%)(Ê)
40
47
8.750%
due
09/01/30
280
421
2.739%
due
10/15/30
(SOFR
+
1.510%)(Ê)
140
147
2.522%
due
04/22/31
(SOFR
+
2.040%)(Ê)
120
123
2.956%
due
05/13/31
(SOFR
+
2.515%)(Ê)
340
357
1.953%
due
02/04/32
(SOFR
+
1.065%)(Ê)
600
583
2.580%
due
04/22/32
(SOFR
+
1.250%)(Ê)
390
400
4.950%
due
06/01/45
100
132
4.260%
due
02/22/48
(USD
3
Month
LIBOR
+
1.580%)(Ê)
110
134
3.109%
due
04/22/51
(SOFR
+
2.440%)(Ê)
90
93
3.328%
due
04/22/52
(SOFR
+
1.580%)(Ê)
620
662
Series
KK
3.650%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.850%)(Ê)(ƒ)
220
220
Kaiser
Foundation
Hospitals
4.150%
due
05/01/47
30
37
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2019
3.266%
due
11/01/49
30
33
Series
2021
2.810%
due
06/01/41
80
82
3.002%
due
06/01/51
80
83
Kinder
Morgan
Energy
Partners,
LP
6.550%
due
09/15/40
600
843
5.500%
due
03/01/44
20
25
Kinder
Morgan,
Inc.
4.300%
due
06/01/25
90
100
4.300%
due
03/01/28
170
194
5.300%
due
12/01/34
690
852
5.550%
due
06/01/45
80
104
5.050%
due
02/15/46
30
36
5.200%
due
03/01/48
10
13
KKR
Group
Finance
Co.
II
LLC
5.500%
due
02/01/43
(Þ)
10
13
KKR
Group
Finance
Co.
III
LLC
5.125%
due
06/01/44
(Þ)
100
130
Kroger
Co.
(The)
3.850%
due
08/01/23
750
796
5.150%
due
08/01/43
20
26
L3Harris
Technologies,
Inc.
2.900%
due
12/15/29
350
371
4.854%
due
04/27/35
40
50
5.054%
due
04/27/45
40
53
Lam
Research
Corp.
1.900%
due
06/15/30
140
141
2.875%
due
06/15/50
60
60
Las
Vegas
Sands
Corp.
3.200%
due
08/08/24
922
968
2.900%
due
06/25/25
940
979
Lennar
Corp.
4.500%
due
04/30/24
10
11
Series
WI
5.000%
due
06/15/27
10
12
Lennox
International,
Inc.
1.700%
due
08/01/27
110
110
Lithia
Motors,
Inc.
4.625%
due
12/15/27
(Þ)
110
116
3.875%
due
06/01/29
(Þ)
190
197
Lockheed
Martin
Corp.
1.850%
due
06/15/30
140
140
4.500%
due
05/15/36
842
1,054
Loews
Corp.
6.000%
due
02/01/35
601
819
Lowe's
Cos.,
Inc.
3.100%
due
05/03/27
844
920
4.500%
due
04/15/30
50
59
1.700%
due
10/15/30
150
144
3.000%
due
10/15/50
190
187
LPL
Holdings,
Inc.
4.375%
due
05/15/31
(Þ)
80
81
Lubrizol
Corp.
6.500%
due
10/01/34
215
311
Main
Street
Capital
Corp.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
77
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
5.200%
due
05/01/24
728
792
Marathon
Petroleum
Corp.
5.000%
due
09/15/54
234
281
Markel
Corp.
4.300%
due
11/01/47
699
819
Marriott
International,
Inc.
Series
FXD
3.600%
due
04/15/24
120
128
Series
R
3.125%
due
06/15/26
841
893
Mars,
Inc.
2.375%
due
07/16/40
(Þ)
260
250
Marsh
&
McLennan
Cos.,
Inc.
3.300%
due
03/14/23
984
1,027
Massachusetts
Mutual
Life
Insurance
Co.
3.375%
due
04/15/50
(Þ)
70
73
Mastercard
,
Inc.
3.300%
due
03/26/27
130
144
1.900%
due
03/15/31
260
263
3.850%
due
03/26/50
120
145
McDonald's
Corp.
1.450%
due
09/01/25
20
20
3.500%
due
03/01/27
10
11
3.500%
due
07/01/27
60
66
3.800%
due
04/01/28
50
57
3.600%
due
07/01/30
70
79
4.700%
due
12/09/35
716
888
4.450%
due
03/01/47
40
49
4.450%
due
09/01/48
80
100
3.625%
due
09/01/49
10
11
4.200%
due
04/01/50
140
169
MDC
Holdings,
Inc.
2.500%
due
01/15/31
160
156
6.000%
due
01/15/43
50
64
Merck
&
Co.,
Inc.
1.450%
due
06/24/30
70
68
2.350%
due
06/24/40
120
116
2.450%
due
06/24/50
40
38
Microchip
Technology,
Inc.
0.972%
due
02/15/24
(Þ)
390
390
0.983%
due
09/01/24
(Þ)
160
159
Microsoft
Corp.
2.400%
due
08/08/26
848
904
3.450%
due
08/08/36
130
150
2.525%
due
06/01/50
174
171
2.921%
due
03/17/52
396
420
MidAmerican
Energy
Co.
3.700%
due
09/15/23
237
251
3.650%
due
04/15/29
50
57
4.400%
due
10/15/44
627
775
3.150%
due
04/15/50
110
117
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets,
Ltd.
6.500%
due
06/20/27
(Þ)
250
275
Molson
Coors
Brewing
Co.
4.200%
due
07/15/46
40
45
Mondelez
International,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.875%
due
10/15/32
981
949
2.625%
due
09/04/50
40
37
Morgan
Stanley
2.188%
due
04/28/26
(SOFR
+
1.990%)(Ê)
70
73
1.593%
due
05/04/27
(SOFR
+
0.879%)(Ê)
70
70
3.622%
due
04/01/31
(SOFR
+
3.120%)(Ê)
180
201
1.794%
due
02/13/32
(SOFR
+
1.034%)(Ê)
80
77
3.217%
due
04/22/42
(SOFR
+
1.485%)(Ê)
190
201
2.802%
due
01/25/52
(SOFR
+
1.430%)(Ê)
350
343
Series
GMTN
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
52
MPLX,
LP
4.000%
due
03/15/28
40
45
4.800%
due
02/15/29
50
59
4.500%
due
04/15/38
170
195
4.700%
due
04/15/48
40
46
5.500%
due
02/15/49
60
78
MPT
Operating
Partnership,
LP
/
MPT
Finance
Corp.
5.000%
due
10/15/27
120
127
4.625%
due
08/01/29
110
118
Nasdaq,
Inc.
2.500%
due
12/21/40
130
121
Nestle
Holdings,
Inc.
3.350%
due
09/24/23
(Þ)
698
742
Netflix,
Inc.
6.375%
due
05/15/29
30
38
5.375%
due
11/15/29
(Þ)
80
97
4.875%
due
06/15/30
(Þ)
110
131
Nevada
Power
Co.
5.450%
due
05/15/41
208
276
Series
R
6.750%
due
07/01/37
362
528
New
York
Life
Insurance
Co.
3.750%
due
05/15/50
(Þ)
180
201
4.450%
due
05/15/69
(Þ)
50
63
Newell
Brands,
Inc.
3.850%
due
04/01/23
40
42
4.200%
due
04/01/26
40
45
NGPL
PipeCo
LLC
7.768%
due
12/15/37
(Þ)
553
791
Northern
Natural
Gas
Co.
4.300%
due
01/15/49
(Þ)
631
744
Northern
Oil
and
Gas,
Inc.
8.125%
due
03/01/28
(Þ)
190
205
Northrop
Grumman
Corp.
5.150%
due
05/01/40
160
210
5.250%
due
05/01/50
90
126
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
78
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
000N
4.030%
due
10/15/47
160
191
Northwest
Pipeline
LLC
Series
WI
4.000%
due
04/01/27
60
67
Northwestern
Mutual
Life
Insurance
Co.
(The)
3.450%
due
03/30/51
(Þ)
510
546
3.625%
due
09/30/59
(Þ)
80
88
NRG
Energy,
Inc.
2.450%
due
12/02/27
(Þ)
390
393
NVIDIA
Corp.
3.500%
due
04/01/40
30
34
3.500%
due
04/01/50
50
56
Occidental
Petroleum
Corp.
6.950%
due
07/01/24
10
11
5.550%
due
03/15/26
110
122
3.400%
due
04/15/26
50
51
3.000%
due
02/15/27
310
308
7.950%
due
06/15/39
50
64
4.625%
due
06/15/45
30
29
4.100%
due
02/15/47
20
19
Omega
Healthcare
Investors,
Inc.
3.375%
due
02/01/31
916
941
Oncor
Electric
Delivery
Co.
LLC
3.100%
due
09/15/49
80
84
ONEOK,
Inc.
6.125%
due
02/01/41
614
791
Oracle
Corp.
2.875%
due
03/25/31
50
52
4.300%
due
07/08/34
648
751
3.950%
due
03/25/51
300
327
4.100%
due
03/25/61
270
299
Otis
Worldwide
Corp.
Series
WI
2.565%
due
02/15/30
60
62
Owl
Rock
Capital
Corp.
4.250%
due
01/15/26
939
1,014
Pacific
Gas
and
Electric
Co.
4.250%
due
08/01/23
140
148
2.100%
due
08/01/27
110
107
2.500%
due
02/01/31
60
56
3.300%
due
08/01/40
20
18
4.950%
due
07/01/50
50
51
3.500%
due
08/01/50
30
27
PacifiCorp
5.750%
due
04/01/37
543
744
Parsley
Energy
LLC
4.125%
due
02/15/28
(Þ)
10
11
PayPal
Holdings,
Inc.
1.650%
due
06/01/25
100
103
2.300%
due
06/01/30
110
114
3.250%
due
06/01/50
60
65
PepsiCo,
Inc.
2.625%
due
03/19/27
897
963
1.625%
due
05/01/30
10
10
2.875%
due
10/15/49
40
41
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.625%
due
03/19/50
20
23
Pfizer,
Inc.
2.550%
due
05/28/40
60
60
2.700%
due
05/28/50
100
99
Philip
Morris
International,
Inc.
2.875%
due
05/01/24
90
96
2.100%
due
05/01/30
70
70
1.750%
due
11/01/30
280
271
Phillips
66
5.875%
due
05/01/42
671
916
Pioneer
Natural
Resources
Co.
2.150%
due
01/15/31
320
314
Plains
All
American
Pipeline,
LP
Series
B
6.125%
due
06/16/23
(USD
3
Month
LIBOR
+
4.110%)(Ê)(ƒ)
300
265
Plains
All
American
Pipeline,
LP
/
PAA
Finance
Corp.
Series
WI
6.700%
due
05/15/36
10
12
Precision
Castparts
Corp.
3.900%
due
01/15/43
457
509
Procter
&
Gamble
Co.
(The)
2.850%
due
08/11/27
870
949
3.000%
due
03/25/30
60
66
1.200%
due
10/29/30
170
162
5.500%
due
02/01/34
100
138
Progress
Energy,
Inc.
7.000%
due
10/30/31
559
776
Prologis,
LP
1.250%
due
10/15/30
230
216
Prospect
Capital
Corp.
3.706%
due
01/22/26
1,003
1,030
Range
Resources
Corp.
5.875%
due
07/01/22
12
12
8.250%
due
01/15/29
(Þ)
150
169
Series
WI
4.875%
due
05/15/25
230
238
9.250%
due
02/01/26
210
232
Raymond
James
Financial,
Inc.
3.750%
due
04/01/51
180
197
Raytheon
Technologies
Corp.
3.650%
due
08/16/23
3
3
3.950%
due
08/16/25
30
33
Series
WI
3.200%
due
03/15/24
708
753
Republic
Services,
Inc.
2.500%
due
08/15/24
910
955
3.375%
due
11/15/27
360
396
S&P
Global,
Inc.
1.250%
due
08/15/30
80
76
3.250%
due
12/01/49
30
32
2.300%
due
08/15/60
50
43
salesforce.com,
Inc.
3.700%
due
04/11/28
10
11
1.500%
due
07/15/28
60
60
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
79
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.950%
due
07/15/31
50
50
2.900%
due
07/15/51
410
414
3.050%
due
07/15/61
150
152
San
Diego
Gas
&
Electric
Co.
Series
RRR
3.750%
due
06/01/47
100
114
Series
VVV
1.700%
due
10/01/30
240
232
Santander
Holdings
USA,
Inc.
4.500%
due
07/17/25
738
819
Schlumberger
Holdings
Corp.
4.000%
due
12/21/25
(Þ)
40
44
Senior
Housing
Properties
Trust
4.750%
due
05/01/24
120
123
Service
Properties
Trust
4.500%
due
06/15/23
160
164
4.350%
due
10/01/24
220
222
4.750%
due
10/01/26
60
59
Simon
Property
Group,
LP
3.500%
due
09/01/25
100
109
Skyworks
Solutions,
Inc.
0.900%
due
06/01/23
150
150
1.800%
due
06/01/26
150
152
Solar
Star
Funding
LLC
5.375%
due
06/30/35
(Þ)
627
707
Southern
California
Edison
Co.
2.250%
due
06/01/30
290
285
3.650%
due
02/01/50
110
110
Series
C
4.125%
due
03/01/48
130
139
Series
G
2.500%
due
06/01/31
120
120
Southern
Co.
(The)
6.000%
due
10/01/34
196
257
Southwest
Airlines
Co.
4.750%
due
05/04/23
440
472
5.250%
due
05/04/25
70
80
Spectra
Energy
Partners,
LP
4.750%
due
03/15/24
671
736
Starbucks
Corp.
4.500%
due
11/15/48
794
990
Sunoco
Logistics
Partners
Operations,
LP
3.900%
due
07/15/26
90
98
5.300%
due
04/01/44
10
12
SVB
Financial
Group
Series
C
4.000%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.202%)(Ê)(ƒ)
70
71
Synchrony
Financial
3.950%
due
12/01/27
793
884
Sysco
Corp.
6.600%
due
04/01/50
585
909
Tanger
Properties,
Ltd.
Partnership
3.875%
due
07/15/27
925
997
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
5.875%
due
04/15/26
10
11
5.375%
due
02/01/27
10
10
5.500%
due
03/01/30
30
33
4.875%
due
02/01/31
(Þ)
70
76
4.000%
due
01/15/32
(Þ)
380
391
Target
Corp.
3.375%
due
04/15/29
140
157
Teachers
Insurance
&
Annuity
Association
of
America
4.900%
due
09/15/44
(Þ)
340
441
Tennessee
Gas
Pipeline
Co.
LLC
2.900%
due
03/01/30
(Þ)
460
477
7.625%
due
04/01/37
608
874
Texas
Instruments,
Inc.
2.900%
due
11/03/27
130
142
2.250%
due
09/04/29
210
219
1.750%
due
05/04/30
70
70
3.875%
due
03/15/39
210
252
Thermo
Fisher
Scientific,
Inc.
5.300%
due
02/01/44
703
975
Time
Warner
Cable
LLC
6.550%
due
05/01/37
90
123
7.300%
due
07/01/38
180
263
6.750%
due
06/15/39
20
28
5.500%
due
09/01/41
666
825
Time
Warner
Entertainment
Co.,
LP
8.375%
due
03/15/23
782
884
8.375%
due
07/15/33
100
152
T-Mobile
USA,
Inc.
2.625%
due
02/15/29
80
79
2.875%
due
02/15/31
70
69
3.500%
due
04/15/31
(Þ)
110
114
Series
WI
3.875%
due
04/15/30
300
335
2.550%
due
02/15/31
824
833
3.000%
due
02/15/41
100
99
3.300%
due
02/15/51
190
190
Transcontinental
Gas
Pipe
Line
Co.
LLC
4.450%
due
08/01/42
240
288
Series
WI
7.850%
due
02/01/26
410
521
3.250%
due
05/15/30
50
54
TWDC
Enterprises
18
Corp.
2.350%
due
12/01/22
240
247
Series
MTNB
7.000%
due
03/01/32
552
793
Tyson
Foods,
Inc.
4.875%
due
08/15/34
826
1,026
Union
Pacific
Corp.
2.150%
due
02/05/27
50
52
2.891%
due
04/06/36
(Þ)
250
260
3.750%
due
02/05/70
40
44
Series
WI
3.839%
due
03/20/60
140
159
United
Airlines
Pass-Through
Trust
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
80
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.875%
due
01/15/26
281
298
United
Airlines,
Inc.
4.625%
due
04/15/29
(Þ)
30
31
United
Continental
Holdings,
Inc.
4.250%
due
10/01/22
210
215
United
Parcel
Service,
Inc.
2.500%
due
04/01/23
995
1,031
United
Technologies
Corp.
4.625%
due
11/16/48
130
167
UnitedHealth
Group,
Inc.
3.850%
due
06/15/28
70
80
2.000%
due
05/15/30
180
181
4.625%
due
07/15/35
100
126
5.800%
due
03/15/36
669
942
5.700%
due
10/15/40
60
85
Unum
Group
5.750%
due
08/15/42
796
995
Upjohn,
Inc.
4.000%
due
06/22/50
(Þ)
729
771
Valero
Energy
Corp.
10.500%
due
03/15/39
488
858
Verizon
Communications,
Inc.
2.100%
due
03/22/28
80
82
3.875%
due
02/08/29
120
137
7.750%
due
12/01/30
100
145
2.550%
due
03/21/31
160
164
4.500%
due
08/10/33
1,086
1,298
5.250%
due
03/16/37
80
105
2.650%
due
11/20/40
90
87
3.400%
due
03/22/41
120
127
3.850%
due
11/01/42
20
23
4.125%
due
08/15/46
60
71
5.500%
due
03/16/47
10
14
4.000%
due
03/22/50
40
46
2.875%
due
11/20/50
230
218
3.550%
due
03/22/51
480
513
3.000%
due
11/20/60
390
364
3.700%
due
03/22/61
1,330
1,424
Series
WI
4.329%
due
09/21/28
53
62
4.862%
due
08/21/46
50
65
2.987%
due
10/30/56
60
56
Visa,
Inc.
2.050%
due
04/15/30
60
62
2.700%
due
04/15/40
70
72
Series
DMTN
2.750%
due
09/15/27
815
881
Vontier
Corp.
1.800%
due
04/01/26
(Þ)
170
169
2.400%
due
04/01/28
(Þ)
370
368
Voya
Financial,
Inc.
5.650%
due
05/15/53
(USD
3
Month
LIBOR
+
3.580%)(Ê)
789
844
Wachovia
Corp.
5.500%
due
08/01/35
802
1,036
Walmart,
Inc.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.700%
due
06/26/28
90
102
5.250%
due
09/01/35
758
1,030
4.050%
due
06/29/48
120
151
Walt
Disney
Co.
(The)
Series
WI
3.700%
due
09/15/24
827
899
6.650%
due
11/15/37
40
60
5.400%
due
10/01/43
130
181
Waste
Management,
Inc.
3.150%
due
11/15/27
210
230
Wells
Fargo
&
Co.
0.805%
due
05/19/25
(SOFR
+
0.510%)(Ê)
220
220
3.000%
due
04/22/26
140
151
3.000%
due
10/23/26
260
280
4.478%
due
04/04/31
(SOFR
+
4.032%)(Ê)
120
142
3.068%
due
04/30/41
(SOFR
+
2.530%)(Ê)
170
174
5.375%
due
11/02/43
130
173
4.650%
due
11/04/44
10
12
3.900%
due
05/01/45
666
781
4.750%
due
12/07/46
120
152
5.013%
due
04/04/51
(SOFR
+
4.502%)(Ê)
400
548
Western
Gas
Partners,
LP
5.500%
due
08/15/48
40
44
Western
Midstream
Operating,
LP
2.288%
due
01/13/23
(USD
3
Month
LIBOR
+
2.100%)(Ê)
180
179
3.100%
due
02/01/25
90
95
4.650%
due
07/01/26
130
139
4.500%
due
03/01/28
50
53
4.050%
due
02/01/30
250
280
5.450%
due
04/01/44
150
162
5.300%
due
03/01/48
140
149
5.250%
due
02/01/50
60
69
Western
Union
Co.
(The)
6.200%
due
11/17/36
832
1,047
Westinghouse
Air
Brake
Technologies
Corp.
Series
WI
3.450%
due
11/15/26
963
1,034
Williams
Cos.,
Inc.
(The)
3.750%
due
06/15/27
60
67
7.750%
due
06/15/31
130
181
8.750%
due
03/15/32
517
794
5.800%
due
11/15/43
35
46
Wyeth
LLC
6.000%
due
02/15/36
716
1,026
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
7.750%
due
04/15/25
(Þ)
210
226
Zions
Bancorp
NA
3.250%
due
10/29/29
994
1,041
209,623
International
Debt
-
15.1%
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
81
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Abu
Dhabi
Government
International
Bond
1.700%
due
03/02/31
(Þ)
200
193
3.875%
due
04/16/50
(Þ)
270
311
Abu
Dhabi
National
Energy
Co.
PJSC
4.375%
due
04/23/25
(Þ)
200
224
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
4.500%
due
09/15/23
150
161
3.150%
due
02/15/24
310
325
4.450%
due
04/03/26
872
958
African
Export-Import
Bank
(The)
5.250%
due
10/11/23
1,700
1,841
2.634%
due
05/17/26
(Þ)
1,530
1,548
Series
REGS
2.634%
due
05/17/26
300
304
Alibaba
Group
Holding,
Ltd.
2.125%
due
02/09/31
200
197
2.700%
due
02/09/41
200
191
3.150%
due
02/09/51
290
285
Alimentation
Couche-Tard,
Inc.
3.550%
due
07/26/27
(Þ)
702
772
Ambac
LSNI
LLC
6.000%
due
02/12/23
(USD
3
Month
LIBOR
+
5.000%)(Ê)(Þ)
3,640
3,639
Anglo
American
Capital
PLC
4.500%
due
03/15/28
(Þ)
360
411
Anheuser-Busch
Cos.
LLC
/
Anheuser-
Busch
InBev
Worldwide,
Inc.
4.900%
due
02/01/46
70
89
Anheuser-Busch
InBev
Worldwide,
Inc.
5.550%
due
01/23/49
50
69
4.500%
due
06/01/50
270
329
Arbor
Realty
CLO,
Ltd.
Series
2021-FL2
Class
A
1.200%
due
05/15/36
(USD
1
Month
LIBOR
+
1.100%)(Ê)(Þ)
1,029
1,030
Argentine
Republic
Government
International
Bond
1.000%
due
07/09/29
34
13
0.500%
due
07/09/30
(~)(Ê)
388
139
0.125%
due
07/09/35
(~)(Ê)
310
98
2.500%
due
07/09/41
(~)(Ê)
160
57
AstraZeneca
PLC
3.125%
due
06/12/27
866
941
Avolon
Holdings
Funding,
Ltd.
3.950%
due
07/01/24
(Þ)
130
139
2.875%
due
02/15/25
(Þ)
150
154
4.250%
due
04/15/26
(Þ)
370
401
Banco
de
Bogota
SA
Series
EMTQ
4.375%
due
08/03/27
(Þ)
686
723
Banco
de
Credito
del
Peru
4.250%
due
04/01/23
(Þ)
693
726
Banco
de
Credito
e
Inversiones
SA
3.500%
due
10/12/27
(Þ)
882
946
Banco
Inbursa
SA
Institucion
de
Banca
Multiple
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.125%
due
06/06/24
(Þ)
711
763
Banco
Mercantil
del
Norte
SA
8.375%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
10
Year
+
7.760%)(Ê)(ƒ)(Þ)
240
290
Banco
Santander
SA
5.179%
due
11/19/25
705
806
Bancolombia
SA
3.000%
due
01/29/25
991
1,018
Bangkok
Bank
PCL
3.875%
due
09/27/22
(Þ)
219
227
Banistmo
SA
Series
MTQ0
3.650%
due
09/19/22
(Þ)
729
744
Bank
of
China,
Ltd.
5.000%
due
11/13/24
(Þ)
833
929
Bank
of
Montreal
0.450%
due
12/08/23
892
895
Bank
of
Nova
Scotia
(The)
2.375%
due
01/18/23
778
802
Barclays
PLC
5.088%
due
06/20/30
(USD
3
Month
LIBOR
+
3.054%)(Ê)
290
338
4.950%
due
01/10/47
660
853
6.125%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.867%)(Ê)(ƒ)
730
809
8.000%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.672%)(Ê)(ƒ)
200
228
Barrick
NA
Finance
LLC
5.700%
due
05/30/41
130
179
BAT
Capital
Corp.
2.259%
due
03/25/28
40
40
3.734%
due
09/25/40
110
107
Series
WI
3.557%
due
08/15/27
385
412
Bayer
US
Finance
II
LLC
3.875%
due
12/15/23
(Þ)
961
1,029
Bayer
US
Finance
LLC
3.375%
due
10/08/24
(Þ)
726
780
BDS,
Ltd.
Series
2021-FL7
Class
A
1.180%
due
06/16/36
(USD
1
Month
LIBOR
+
1.070%)(Ê)(Þ)
1,558
1,558
Bellemeade
Re,
Ltd.
Series
2017-1
Class
M2
4.297%
due
10/25/27
(USD
1
Month
LIBOR
+
3.350%)(Ê)(Þ)
1,388
1,392
Series
2020-2A
Class
M1B
3.583%
due
08/26/30
(USD
1
Month
LIBOR
+
3.200%)(Ê)(Þ)
1,913
1,925
Series
2021-2A
Class
M1A
1.210%
due
06/25/31
(SOFR
30
Day
Average
+
1.200%)(Ê)(Þ)
2,607
2,608
Series
2021-2A
Class
M1B
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
82
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
1.510%
due
06/25/31
(SOFR
30
Day
Average
+
1.500%)(Ê)(Þ)
1,143
1,144
Bermuda
Government
International
Bond
2.375%
due
08/20/30
(Þ)
380
379
Bharti
Airtel
International
Netherlands
BV
Series
144a
5.125%
due
03/11/23
(Þ)
693
734
BNP
Paribas
SA
2.219%
due
06/09/26
(SOFR
+
2.074%)(Ê)(Þ)
680
701
4.625%
due
03/13/27
(Þ)
722
815
1.675%
due
06/30/27
(SOFR
+
0.912%)(Ê)(Þ)
210
210
4.400%
due
08/14/28
(Þ)
200
231
2.824%
due
01/26/41
(Þ)
400
378
BOC
Aviation
USA
Corp.
1.625%
due
04/29/24
(Þ)
200
202
British
Telecommunications
PLC
9.625%
due
12/15/30
70
108
Brookfield
Finance
LLC
3.450%
due
04/15/50
827
853
Brookfield
Finance,
Inc.
4.000%
due
04/01/24
841
909
Canadian
Imperial
Bank
of
Commerce
0.950%
due
06/23/23
920
928
Canadian
Natural
Resources,
Ltd.
5.850%
due
02/01/35
661
838
Canadian
Pacific
Railway
Co.
6.125%
due
09/15/15
656
1,014
Canyon
Capital
CLO,
Ltd.
Series
2020-2A
Class
A
1.660%
due
10/15/31
(USD
3
Month
LIBOR
+
1.450%)(Ê)(Þ)
1,000
1,003
Carnical
Corp.
Term
Loan
B
0.000%
due
06/30/25
(~)(Ê)(v)
130
130
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
Celulosa
Arauco
y
Constitucion
SA
Series
WI
3.875%
due
11/02/27
705
758
Cencosud
SA
4.375%
due
07/17/27
(Þ)
930
1,017
CI
Financial
Corp.
3.200%
due
12/17/30
550
564
4.100%
due
06/15/51
140
146
Comision
Federal
de
Electricidad
3.348%
due
02/09/31
(Þ)
200
198
Commonwealth
Bank
of
Australia
2.688%
due
03/11/31
(Þ)
200
200
3.743%
due
09/12/39
(Þ)
200
220
4.316%
due
01/10/48
(Þ)
886
1,044
Cooperatieve
Rabobank
UA
4.375%
due
08/04/25
650
726
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Credicorp
,
Ltd.
2.750%
due
06/17/25
(Þ)
922
936
Credit
Agricole
SA
4.375%
due
03/17/25
(Þ)
734
807
Credit
Suisse
Group
AG
4.282%
due
01/09/28
(Þ)
699
778
3.091%
due
05/14/32
(SOFR
+
1.730%)(Ê)(Þ)
480
495
6.250%
due
12/29/49
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
3.455%)(Ê)
(ƒ)(Þ)
550
602
6.375%
due
12/31/99
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.822%)(Ê)(ƒ)(Þ)
560
624
Series
144a
7.500%
due
12/31/99
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
4.600%)(Ê)
(ƒ)(Þ)
750
816
DAE
Funding
LLC
1.550%
due
08/01/24
(Þ)
220
220
Daimler
Finance
NA
LLC
2.550%
due
08/15/22
(Þ)
792
811
Danone
SA
2.589%
due
11/02/23
(Þ)
718
748
Danske
Bank
A/S
3.875%
due
09/12/23
(Þ)
200
213
5.375%
due
01/12/24
(Þ)
1,512
1,677
Delhaize
America,
Inc.
9.000%
due
04/15/31
154
237
Deutsche
Bank
AG
1.447%
due
04/01/25
(SOFR
+
1.131%)(Ê)
1,024
1,030
Deutsche
Telekom
International
Finance
BV
3.600%
due
01/19/27
(Þ)
855
940
8.750%
due
06/15/30
50
75
DH
Europe
Finance
II
SARL
3.400%
due
11/15/49
684
752
Dryden
50
Senior
Loan
Fund
Series
2021-50A
Class
A1R
1.000%
due
07/15/30
(USD
3
Month
LIBOR
+
1.000%)(Ê)(Þ)
1,230
1,230
Ecopetrol
SA
5.375%
due
06/26/26
60
66
5.875%
due
05/28/45
1,047
1,122
Enbridge,
Inc.
3.700%
due
07/15/27
687
758
Enel
Finance
International
NV
Series
658A
3.500%
due
04/06/28
(Þ)
706
773
Eni
USA,
Inc.
7.300%
due
11/15/27
711
928
Fairfax
Financial
Holdings,
Ltd.
Series
WI
4.850%
due
04/17/28
810
932
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
83
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Falabella
SA
3.750%
due
04/30/23
(Þ)
892
928
First
Quantum
Minerals,
Ltd.
7.500%
due
04/01/25
(Þ)
200
208
6.875%
due
10/15/27
(Þ)
480
523
Four
Seasons
Hotels,
Ltd.
1st
Lien
Term
Loan
2.104%
due
11/30/23
(USD
1
Month
LIBOR
+
2.000%)(Ê)
147
147
Fresenius
Medical
Care
US
Finance
III,
Inc.
3.000%
due
12/01/31
(Þ)
1,015
1,035
Fresnillo
PLC
4.250%
due
10/02/50
(Þ)
260
264
GE
Capital
International
Funding
Co.,
ULC
Series
WI
4.418%
due
11/15/35
300
360
GFL
Environmental,
Inc.
2020
Term
Loan
3.500%
due
05/31/25
(USD
1
Month
LIBOR
+
3.000%)(Ê)
15
15
GlaxoSmithKline
Capital,
Inc.
2.800%
due
03/18/23
449
468
Glencore
Canada
Corp.
6.200%
due
06/15/35
631
818
Glencore
Funding
LLC
4.125%
due
03/12/24
(Þ)
550
593
4.625%
due
04/29/24
(Þ)
40
44
1.625%
due
09/01/25
(Þ)
140
142
4.000%
due
03/27/27
(Þ)
220
244
3.875%
due
10/27/27
(Þ)
50
55
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
Grifols
Worldwide
Operations
USA,
Inc.
Term
Loan
B
2.088%
due
11/15/27
(USD
1
Week
LIBOR
+
2.000%)(Ê)
296
293
HGI
CRE
CLO,
Ltd.
Series
2021-FL1
Class
A
1.160%
due
06/16/36
(USD
1
Month
LIBOR
+
1.050%)(Ê)(Þ)
2,190
2,190
Highlands
Holdings
Bond
Issuer,
Ltd.
7.625%
due
10/15/25
(Þ)
290
307
HSBC
Bank
PLC
7.650%
due
05/01/25
375
453
HSBC
Holdings
PLC
3.900%
due
05/25/26
220
245
2.099%
due
06/04/26
(SOFR
+
1.929%)(Ê)
200
206
4.041%
due
03/13/28
(USD
3
Month
LIBOR
+
1.546%)(Ê)
410
455
7.625%
due
05/17/32
669
938
2.804%
due
05/24/32
430
441
ICICI
Bank,
Ltd.
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.000%
due
03/18/26
(Þ)
782
846
ING
Bank
NV
5.800%
due
09/25/23
(Þ)
935
1,037
Innogy
Finance
BV
6.650%
due
04/30/38
(Þ)
621
904
Intesa
Sanpaolo
SpA
3.125%
due
07/14/22
(Þ)
600
616
3.375%
due
01/12/23
(Þ)
200
208
5.017%
due
06/26/24
(Þ)
200
218
3.875%
due
01/12/28
(Þ)
846
914
4.198%
due
06/01/32
(Þ)
200
205
4.950%
due
06/01/42
(Þ)
400
414
Series
X
4.700%
due
09/23/49
(Þ)
200
233
Israel
Government
International
Bond
2.750%
due
07/03/30
200
213
KazMunayGas
National
Co.
JSC
5.375%
due
04/24/30
(Þ)
200
239
Kerry
Group
Financial
Services
Unlimited
Co.
3.200%
due
04/09/23
(Þ)
1,000
1,036
Klabin
Austria
GmbH
3.200%
due
01/12/31
(Þ)
200
196
LCM
XXIII,
Ltd.
Series
2020-23A
Class
A1R
2.205%
due
10/20/29
(USD
3
Month
LIBOR
+
1.070%)(Ê)(Þ)
1,020
1,020
LCM
XXV,
Ltd.
Series
2017-25A
Class
A
2.345%
due
07/20/30
(USD
3
Month
LIBOR
+
1.210%)(Ê)(Þ)
1,904
1,904
Lloyds
Banking
Group
PLC
4.050%
due
08/16/23
742
795
12.000%
due
12/29/49
(USD
3
Month
LIBOR
+
11.756%)(Ê)(ƒ)(Þ)
681
740
7.500%
due
12/31/99
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
4.496%)(Ê)(ƒ)
200
234
Lukoil
International
Finance
BV
4.563%
due
04/24/23
(Þ)
682
723
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
1,923
Madison
Park
Funding,
Ltd.
Series
2021-48A
Class
A
1.292%
due
04/19/33
(USD
3
Month
LIBOR
+
1.150%)(Ê)(Þ)
1,158
1,158
Magnetite
XVIII,
Ltd.
Series
2018-18A
Class
AR
1.472%
due
11/15/28
(USD
3
Month
LIBOR
+
1.080%)(Ê)(Þ)
1,488
1,488
MEG
Energy
Corp.
6.500%
due
01/15/25
(Þ)
90
93
7.125%
due
02/01/27
(Þ)
190
202
5.875%
due
02/01/29
(Þ)
80
83
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
84
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Melco
Resorts
Finance,
Ltd.
5.375%
due
12/04/29
(Þ)
240
253
MercadoLibre
,
Inc.
3.125%
due
01/14/31
410
402
Mexico
Government
International
Bond
4.350%
due
01/15/47
610
636
Mizuho
Financial
Group
Cayman
3,
Ltd.
4.600%
due
03/27/24
(Þ)
930
1,014
National
Bank
of
Canada
2.150%
due
10/07/22
(Þ)
780
797
Natwest
Group
PLC
3.875%
due
09/12/23
200
214
3.754%
due
11/01/29
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.100%)(Ê)
200
213
8.625%
due
12/29/49
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
7.598%)(Ê)(ƒ)
200
201
Nippon
Life
Insurance
Co.
2.750%
due
01/21/51
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.653%)(Ê)(Þ)
250
245
Nissan
Motor
Acceptance
Corp.
3.043%
due
09/15/23
(Þ)
440
459
3.522%
due
09/17/25
(Þ)
280
299
4.345%
due
09/17/27
(Þ)
300
330
4.810%
due
09/17/30
(Þ)
270
305
Nordea
Bank
Abp
4.625%
due
09/13/33
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
1.690%)(Ê)(Þ)
913
1,028
Novartis
Capital
Corp.
2.000%
due
02/14/27
912
948
NTT
Finance
Corp.
2.065%
due
04/03/31
(Þ)
200
203
Nutrien
,
Ltd.
5.875%
due
12/01/36
627
852
NXP
BV
/
NXP
Funding
LLC
3.400%
due
05/01/30
(Þ)
80
87
OCP
CLO,
Ltd.
Series
2017-10A
Class
A1R
1.035%
due
10/26/27
(USD
3
Month
LIBOR
+
0.820%)(Ê)(Þ)
847
847
OCP
SA
3.750%
due
06/23/31
(Þ)
200
202
5.125%
due
06/23/51
(Þ)
200
202
Oman
Government
International
Bond
Series
REGS
6.250%
due
01/25/31
450
483
Oman
Sovereign
Sukuk
Co.
Series
REGS
4.875%
due
06/15/30
300
308
Panama
Government
International
Bond
2.252%
due
09/29/32
260
249
Paraguay
Government
International
Bond
5.400%
due
03/30/50
(Þ)
200
233
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
132
Petrobras
Global
Finance
BV
6.900%
due
03/19/49
410
489
5.500%
due
06/10/51
100
100
Series
WI
5.999%
due
01/27/28
100
115
Petroleos
del
Peru
SA
5.625%
due
06/19/47
(Þ)
200
213
Prosus
NV
4.027%
due
08/03/50
(Þ)
909
874
Provincia
de
Buenos
Aires
6.500%
due
02/15/23
(~)(Ê)(Þ)
140
61
Provincia
de
Cordoba
7.125%
due
12/10/25
(~)(Ê)(Þ)
200
153
7.450%
due
06/01/27
(~)(Ê)(Þ)
230
155
Qatar
Government
International
Bond
4.400%
due
04/16/50
(Þ)
360
438
Qatar
Petroleum
2.250%
due
07/12/31
(Þ)
670
663
Radnor
RE,
Ltd.
Series
2019-2
Class
M1B
1.935%
due
06/25/29
(USD
1
Month
LIBOR
+
1.750%)(Ê)(Þ)
1,679
1,689
RESIMAC
Premier
1.274%
due
02/07/52
(Þ)
796
799
Resimac
,
Ltd.
Series
2021-1A
Class
A1
0.777%
due
07/10/52
(USD
1
Month
LIBOR
+
0.700%)(Ê)(Þ)
1,559
1,561
Resorts
World
Las
Vegas
LLC
/
RWLV
Capital,
Inc.
4.625%
due
04/16/29
(Þ)
809
838
Reynolds
American,
Inc.
5.850%
due
08/15/45
70
86
Riserva
CLO,
Ltd.
Series
2021-3A
Class
ARR
1.250%
due
01/18/34
(USD
3
Month
LIBOR
+
1.060%)(Ê)(Þ)
940
940
SABIC
Capiral
II
BV
4.000%
due
10/10/23
(Þ)
737
790
Sands
China,
Ltd.
Series
WI
5.125%
due
08/08/25
200
223
3.800%
due
01/08/26
200
214
5.400%
due
08/08/28
200
232
Santander
UK
Group
Holdings
PLC
5.000%
due
11/07/23
(Þ)
238
259
Class
N
4.750%
due
09/15/25
(Þ)
701
787
Saudi
Arabian
Oil
Co.
2.875%
due
04/16/24
(Þ)
768
809
Schneider
Electric
SE
2.950%
due
09/27/22
(Þ)
800
825
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
85
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Shackleton
CLO,
Ltd.
Series
2018-4RA
Class
A1A
2.311%
due
04/13/31
(USD
3
Month
LIBOR
+
1.000%)(Ê)(Þ)
930
926
Shell
International
Finance
BV
2.875%
due
05/10/26
40
43
4.375%
due
05/11/45
190
233
4.000%
due
05/10/46
80
94
3.250%
due
04/06/50
140
149
Siemens
Financieringsmaatschappij
NV
2.000%
due
09/15/23
(Þ)
891
920
Sky,
Ltd.
3.750%
due
09/16/24
(Þ)
941
1,028
Societe
Generale
SA
5.000%
due
01/17/24
(Þ)
700
762
Southern
Copper
Corp.
6.750%
due
04/16/40
10
14
5.250%
due
11/08/42
60
77
Standard
Chartered
PLC
5.700%
due
03/26/44
(Þ)
754
967
STERIS
Irish
FinCo
Unlimited
Co.
3.750%
due
03/15/51
150
159
Sumitomo
Mitsui
Financial
Group,
Inc.
2.778%
due
10/18/22
851
878
Suncor
Energy,
Inc.
6.500%
due
06/15/38
607
859
Suzano
Austria
GmbH
3.125%
due
01/15/32
230
228
7.000%
due
03/16/47
(Þ)
200
270
Teck
Resources,
Ltd.
6.250%
due
07/15/41
60
78
5.400%
due
02/01/43
60
73
Series
WI
3.900%
due
07/15/30
200
215
Telefonica
Emisiones
SA
4.570%
due
04/27/23
682
731
5.213%
due
03/08/47
150
187
Tencent
Holdings,
Ltd.
3.280%
due
04/11/24
(Þ)
891
949
3.840%
due
04/22/51
(Þ)
350
377
Tesco
PLC
6.150%
due
11/15/37
(Þ)
623
828
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
329
3.150%
due
10/01/26
300
285
Textainer
Marine
Containers
VII,
Ltd.
Series
2020-1A
Class
A
2.730%
due
08/21/45
(Þ)
1,577
1,604
Textainer
Marine
Containers,
Ltd.
Series
2020-2A
Class
A
2.100%
due
09/20/45
(Þ)
1,275
1,284
THL
Credit
Wind
River
CLO,
Ltd.
Series
2017-2A
Class
AR
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.365%
due
10/18/30
(USD
3
Month
LIBOR
+
1.230%)(Ê)(Þ)
985
986
Total
Capital
International
SA
2.700%
due
01/25/23
713
739
TotalEnergies
Capital
Canada,
Ltd.
2.750%
due
07/15/23
770
805
TransAlta
Corp.
6.500%
due
03/15/40
60
69
TransCanada
PipeLines
,
Ltd.
5.600%
due
03/31/34
644
812
TransCanada
Trust
Series
16-A
5.875%
due
08/15/76
(USD
3
Month
LIBOR
+
4.640%)(Ê)
746
833
Trust
Fibra
Uno
5.250%
due
01/30/26
(Þ)
685
771
UBS
AG
4.500%
due
06/26/48
(Þ)
200
261
UBS
Group
AG
4.125%
due
04/15/26
(Þ)
694
778
7.000%
due
12/31/99
(USD
Swap
Semiannual
30/360
[versus
3
Month
LIBOR]
5
Year
Rate
+
4.344%)(Ê)
(ƒ)(Þ)
660
727
UniCredit
SpA
7.296%
due
04/02/34
(USD
ICE
Swap
Rate
NY
5
Year
Rate
+
4.914%)(Ê)(Þ)
210
252
Unilever
Capital
Corp.
0.375%
due
09/14/23
888
888
Vale
Overseas,
Ltd.
8.250%
due
01/17/34
636
929
Videotron,
Ltd.
3.625%
due
06/15/29
(Þ)
60
61
Vodafone
Group
PLC
6.150%
due
02/27/37
50
69
5.250%
due
05/30/48
40
53
Volkswagen
Group
of
America
Finance
LLC
0.875%
due
11/22/23
(Þ)
942
945
Voya
CLO,
Ltd.
Series
2020-2A
Class
A1RR
2.155%
due
04/17/30
(USD
3
Month
LIBOR
+
1.020%)(Ê)(Þ)
2,449
2,448
WEA
Finance
LLC
/
Westfield
UK
&
Europe
Finance
PLC
3.750%
due
09/17/24
(Þ)
200
214
4.750%
due
09/17/44
(Þ)
200
216
Westpac
Banking
Corp.
2.668%
due
11/15/35
(U.S.
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.750%)(Ê)
150
148
Woori
Bank
4.750%
due
04/30/24
(Þ)
734
806
Wynn
Macau,
Ltd.
5.625%
due
08/26/28
(Þ)
510
532
Yamana
Gold,
Inc.
Series
WI
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
86
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
4.625%
due
12/15/27
280
308
154,576
Loan
Agreements
-
0.5%
Aecom
Technology
Corp.
2021
Term
Loan
B
1.854%
due
04/09/28
(USD
1
Month
LIBOR
+
1.750%)(Ê)
170
170
Asurion
LLC
1st
Lien
Term
Loan
B7
3.104%
due
11/03/24
(USD
1
Month
LIBOR
+
3.000%)(Ê)
186
184
Asurion
LLC
2020
Term
Loan
B8
3.354%
due
12/23/26
(USD
1
Month
LIBOR
+
3.250%)(Ê)
203
201
Asurion
LLC
2021
Term
Loan
B9
3.345%
due
08/03/27
(USD
1
Month
LIBOR
+
3.250%)(Ê)
80
79
Bausch
Health
Americas,
Inc.
Term
Loan
B
2.854%
due
11/27/25
(USD
1
Month
LIBOR
+
2.750%)(Ê)
20
20
Caesars
Resort
Collection
LLC
1st
Lien
Term
Loan
B
2.854%
due
12/22/24
(USD
1
Month
LIBOR
+
2.750%)(Ê)
137
135
Caesars
Resort
Collection
LLC
2020
Term
Loan
4.604%
due
06/19/25
(USD
1
Month
LIBOR
+
4.500%)(Ê)
159
159
CSC
Holdings
LLC
2018
Incremental
Term
Loan
0.000%
due
01/15/26
(~)(Ê)(v)
30
30
Eyecare
Partners
LLC
Term
Loan
3.854%
due
02/20/27
(USD
1
Month
LIBOR
+
3.750%)(Ê)
99
98
First
Eagle
Holdings,
Inc.
Term
Loan
B
2.647%
due
02/02/27
(USD
3
Month
LIBOR
+
2.500%)(Ê)
38
37
Focus
Financial
Partners
LLC
Term
Loan
2.104%
due
07/03/24
(USD
1
Month
LIBOR
+
2.000%)(Ê)
147
146
Garda
World
Security
Corp.
2021
Term
Loan
B
4.350%
due
10/30/26
(USD
1
Month
LIBOR
+
4.250%)(Ê)
69
69
Genesee
&
Wyoming,
Inc.
New
Term
Loan
2.147%
due
12/30/26
(USD
3
Month
LIBOR
+
2.000%)(Ê)
148
147
Harbor
Freight
Tools
USA,
Inc.
2020
Term
Loan
B
3.750%
due
10/14/27
(USD
1
Month
LIBOR
+
3.000%)(Ê)
140
140
ICON
Luxembourg
SARL
1st
Lien
Term
Loan
B
0.000%
due
06/16/28
(~)(Ê)(v)
108
108
ICON
Luxembourg
SARL
Term
Loan
B
0.000%
due
06/16/28
(~)(Ê)(v)
432
433
Intrawest
Resorts
Holdings,
Inc.
1st
Lien
Term
Loan
B1
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
2.854%
due
07/31/24
(USD
1
Month
LIBOR
+
2.750%)(Ê)
137
135
McAfee
LLC
Term
Loan
B
0.000%
due
05/03/28
(~)(Ê)(v)
190
190
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
2.592%
due
09/19/26
(USD
1
Month
LIBOR
+
2.500%)(Ê)
356
355
Petco
Animal
Supplies,
Inc
2021
Term
Loan
B
4.000%
due
02/24/28
(USD
3
Month
LIBOR
+
3.250%)(Ê)
130
129
Phoenix
Guarantor,
Inc.
Term
Loan
B
3.341%
due
03/05/26
(USD
1
Month
LIBOR
+
3.250%)(Ê)
121
120
Prime
Security
Services
Borrower
LLC
2021
Term
Loan
3.500%
due
09/23/26
(USD
6
Month
LIBOR
+
2.750%)(Ê)
228
228
Quikrete
Holdings,
Inc.
2021
Term
Loan
B1
0.000%
due
06/11/28
(~)(Ê)(v)
60
59
UFC
Holdings
LLC
2021
Term
Loan
B
3.750%
due
04/29/26
(USD
6
Month
LIBOR
+
3.000%)(Ê)
209
209
United
Airlines,
Inc.
2021
Term
Loan
B
4.500%
due
04/21/28
(USD
3
Month
LIBOR
+
3.750%)(Ê)
140
142
Verscend
Holding
Corp.
2021
Term
Loan
B
4.104%
due
08/27/25
(USD
1
Month
LIBOR
+
4.000%)(Ê)
160
160
VICI
Properties,
Inc.
1st
Lien
Term
Loan
B
1.841%
due
12/22/24
(USD
1
Month
LIBOR
+
1.750%)(Ê)
236
234
Virgin
Media
Secured
Finance
PLC
Term
Loan
2.573%
due
01/31/28
(USD
1
Month
LIBOR
+
2.500%)(Ê)
297
294
Zebra
Buyer
LLC
Term
Loan
B
0.000%
due
04/21/28
(~)(Ê)(v)
290
291
4,871
Mortgage-Backed
Securities
-
15.8%
Alternative
Loan
Trust
Series
2007-16CB
Class
1A5
0.568%
due
08/25/37
(USD
1
Month
LIBOR
+
0.400%)(Ê)
311
222
Banc
of
America
Funding
Trust
Series
2005-D
Class
A1
4.217%
due
05/25/35
(~)(Ê)
183
185
Series
2006-6
Class
2A1
6.000%
due
08/25/36
524
525
Bear
Stearns
ARM
Trust
Series
2004-3
Class
2A
3.911%
due
07/25/34
(~)(Ê)
86
88
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
87
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Bear
Stearns
Commercial
Mortgage
Securities
Trust
Series
2007-T26
Class
AM
5.513%
due
01/12/45
(~)(Ê)
69
69
Bellemeade
Re,
Ltd.
2.859%
due
10/25/28
(~)(Ê)(Þ)
1,780
1,793
Series
2019-1A
Class
M2
2.809%
due
03/25/29
(USD
1
Month
LIBOR
+
2.700%)(Ê)(Þ)
2,309
2,313
Series
2020-4A
Class
M2B
3.750%
due
06/25/30
(USD
1
Month
LIBOR
+
3.600%)(Ê)(Þ)
881
892
Benchmark
Mortgage
Trust
Series
2020-IG1
Class
A3
2.687%
due
09/15/43
3,000
3,154
Series
2020-IG3
Class
A4
2.437%
due
09/15/48
(Þ)
2,448
2,526
CAMB
Commercial
Mortgage
Trust
Series
2019-LIFE
Class
F
2.735%
due
12/15/37
(USD
1
Month
LIBOR
+
2.550%)(Ê)(Þ)
987
989
Citigroup
Commercial
Mortgage
Trust
Series
2013-375P
Class
D
3.635%
due
05/10/35
(~)(Ê)(Þ)
1,418
1,438
Citigroup
Mortgage
Loan
Trust,
Inc.
Series
2015-2
Class
5A1
0.737%
due
03/25/47
(USD
1
Month
LIBOR
+
0.250%)(Ê)(Þ)
44
45
Commercial
Mortgage
Trust
Series
2019-521F
Class
D
1.735%
due
06/15/34
(USD
1
Month
LIBOR
+
1.550%)(Ê)(Þ)
899
856
CORE
Mortgage
Trust
Series
2019-CORE
Class
D
1.835%
due
12/15/31
(USD
1
Month
LIBOR
+
1.650%)(Ê)(Þ)
1,216
1,213
Credit
Suisse
Mortgage
Trust
Series
2019-ICE4
Class
E
2.335%
due
05/15/36
(USD
1
Month
LIBOR
+
2.150%)(Ê)(Þ)
1,282
1,284
DBGS
Mortgage
Trust
Series
2019-1735
Class
D
4.334%
due
04/10/37
(~)(Ê)(Þ)
985
1,029
Deutsche
Mortgage
Securities,
Inc.
Re-
REMIC
Trust
Series
2007-WM1
Class
A1
3.658%
due
06/27/37
(~)(Ê)(Þ)
317
322
Eagle
Re,
Ltd.
Series
2018-1
Class
M2
3.947%
due
11/25/28
(USD
1
Month
LIBOR
+
3.000%)(Ê)(Þ)
732
737
Series
2020-1
Class
M1A
1.068%
due
01/25/30
(USD
1
Month
LIBOR
+
0.900%)(Ê)(Þ)
511
510
Series
2021-1
Class
M1B
2.165%
due
10/25/33
(SOFR
30
Day
Average
+
2.150%)(Ê)(Þ)
1,268
1,284
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Fannie
Mae
2.560%
due
2028
370
398
2.600%
due
2031
375
409
6.000%
due
2032
13
15
5.000%
due
2033
4
5
5.500%
due
2034
10
12
4.500%
due
2035
262
298
5.500%
due
2037
75
87
5.500%
due
2038
310
360
6.000%
due
2039
27
33
4.000%
due
2040
199
222
5.500%
due
2040
366
416
6.000%
due
2040
86
102
4.000%
due
2041
307
339
6.000%
due
2041
135
160
3.500%
due
2043
700
755
4.000%
due
2044
665
741
3.500%
due
2045
851
917
3.000%
due
2046
109
116
3.500%
due
2046
161
173
4.000%
due
2046
816
886
4.500%
due
2046
304
339
3.000%
due
2047
2,300
2,429
3.500%
due
2047
356
385
4.000%
due
2047
77
83
4.500%
due
2048
1,086
1,193
5.000%
due
2048
280
307
3.000%
due
2049
4,841
5,150
4.000%
due
2049
1,008
1,100
5.000%
due
2049
658
719
2.500%
due
2050
7,984
8,339
3.000%
due
2050
9,248
9,815
3.500%
due
2050
997
1,068
2.000%
due
2051
11,854
11,997
2.500%
due
2051
2,168
2,246
Fannie
Mae
Connecticut
Avenue
Securities
Trust
Series
2018-C03
Class
1M2
2.318%
due
10/25/30
(USD
1
Month
LIBOR
+
2.150%)(Ê)
509
515
Series
2019-R02
Class
1M2
2.468%
due
08/25/31
(USD
1
Month
LIBOR
+
2.300%)(Ê)(Þ)
1,419
1,429
Fannie
Mae
REMICS
Series
1999-56
Class
Z
7.000%
due
12/18/29
6
7
Series
2004-W5
Class
A1
6.000%
due
02/25/47
130
153
Series
2005-24
Class
ZE
5.000%
due
04/25/35
131
148
Series
2020-75
Class
LI
Interest
Only
STRIP
2.500%
due
11/25/50
1,536
219
Series
2020-97
Class
EI
Interest
Only
STRIP
2.000%
due
01/25/51
1,254
159
Series
2021-1
Class
IM
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
88
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Interest
Only
STRIP
2.000%
due
02/25/51
1,071
128
Series
2021-3
Class
KI
Interest
Only
STRIP
2.500%
due
02/25/51
1,563
175
Series
2021-3
Class
NI
Interest
Only
STRIP
2.500%
due
02/25/51
1,693
221
Series
2021-8
Class
EI
Interest
Only
STRIP
3.500%
due
03/25/51
690
98
Series
2021-8
Class
GI
Interest
Only
STRIP
3.000%
due
03/25/51
758
129
Freddie
Mac
5.500%
due
2038
236
275
6.000%
due
2038
60
71
5.000%
due
2040
124
141
4.000%
due
2041
848
946
4.500%
due
2041
122
135
5.500%
due
2041
144
167
3.500%
due
2043
412
453
4.000%
due
2044
313
343
3.500%
due
2045
639
692
4.000%
due
2045
254
278
3.000%
due
2046
2,068
2,212
4.000%
due
2046
169
183
3.000%
due
2047
719
767
3.000%
due
2048
117
124
4.000%
due
2048
939
1,023
4.500%
due
2048
242
261
3.000%
due
2049
263
278
2.500%
due
2050
2,142
2,237
3.000%
due
2050
3,985
4,203
2.000%
due
2051
5,968
6,030
2.500%
due
2051
7,763
8,090
Freddie
Mac
REMICS
Series
2003-2624
Class
QH
5.000%
due
06/15/33
46
52
Series
2006-R007
Class
ZA
6.000%
due
05/15/36
154
182
Series
2010-3632
Class
PK
5.000%
due
02/15/40
89
99
Series
2010-3653
Class
B
4.500%
due
04/15/30
131
144
Series
2012-4010
Class
KM
3.000%
due
01/15/42
67
71
Series
2017-4734
Class
IO
Interest
Only
STRIP
4.000%
due
12/15/47
975
153
Series
2020-5008
Class
IE
Interest
Only
STRIP
2.000%
due
09/25/50
1,028
103
Series
2020-5038
Class
NI
Interest
Only
STRIP
2.000%
due
11/25/50
1,437
175
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Series
2020-5050
Class
IP
Interest
Only
STRIP
3.000%
due
10/25/50
2,739
393
Series
2020-5052
Class
IO
Interest
Only
STRIP
3.500%
due
12/25/50
1,100
154
Series
2020-5052
Class
KI
Interest
Only
STRIP
4.000%
due
12/25/50
1,379
199
Series
2021-5072
Class
IQ
Interest
Only
STRIP
3.500%
due
10/25/50
1,436
235
Series
2021-5072
Class
QI
Interest
Only
STRIP
3.500%
due
10/25/50
1,178
217
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
Series
2018-HQA2
Class
M2AS
0.992%
due
10/25/48
(USD
1
Month
LIBOR
+
0.900%)(Ê)(Þ)
2,657
2,657
Series
2020-DNA5
Class
M1
1.387%
due
10/25/50
(SOFR
30
Day
Average
+
1.300%)(Ê)(Þ)
123
123
Ginnie
Mae
REMICS
Series
2020-134
Class
IL
Interest
Only
STRIP
2.500%
due
09/20/50
609
50
Series
2020-146
Class
EI
Interest
Only
STRIP
2.500%
due
10/20/50
1,621
178
Series
2020-160
Class
GI
Interest
Only
STRIP
2.000%
due
10/20/50
2,530
259
Series
2020-167
Class
BI
Interest
Only
STRIP
2.500%
due
11/20/50
1,636
205
Series
2020-167
Class
IA
Interest
Only
STRIP
2.500%
due
11/20/50
1,628
178
Series
2020-167
Class
IW
Interest
Only
STRIP
2.000%
due
11/20/50
1,841
197
Series
2020-173
Class
MI
Interest
Only
STRIP
2.500%
due
11/20/50
5,552
682
Series
2021-1
Class
AI
Interest
Only
STRIP
2.000%
due
01/20/51
540
67
Series
2021-1
Class
PI
Interest
Only
STRIP
2.500%
due
12/20/50
533
61
Series
2021-9
Class
MI
Interest
Only
STRIP
2.500%
due
01/20/51
1,575
197
Series
2021-23
Class
IA
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
89
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Interest
Only
STRIP
2.500%
due
02/20/51
1,159
153
Series
2021-23
Class
KI
Interest
Only
STRIP
3.000%
due
02/20/51
996
116
Hilton
USA
Trust
Series
2016-HHV
Class
D
4.333%
due
11/05/38
(~)(Ê)(Þ)
1,240
1,326
Series
2016-HHV
Class
E
4.333%
due
11/05/38
(~)(Ê)(Þ)
600
618
Series
2016-SFP
Class
A
2.828%
due
11/05/35
(Þ)
226
227
HMH
Trust
Series
2017-NSS
Class
E
6.292%
due
07/05/31
(Þ)
1,170
1,106
HOM
RE,
Ltd.
Series
2021-1
Class
M1A
1.173%
due
07/25/33
(USD
1
Month
LIBOR
+
1.050%)(Ê)(Þ)
844
840
Hospitality
Mortgage
Trust
Series
2019-HIT
Class
D
2.185%
due
11/15/36
(USD
1
Month
LIBOR
+
2.000%)(Ê)(Þ)
1,216
1,216
JPMDB
Commercial
Mortgage
Securities
Trust
Series
2020-COR7
Class
A5
2.180%
due
05/13/53
2,082
2,112
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series
2004-LN2
Class
B
5.686%
due
07/15/41
(~)(Ê)
15
15
JPMorgan
Mortgage
Trust
2.500%
due
12/25/51
(Þ)
4,335
4,449
Series
2018-3
Class
A3
3.500%
due
09/25/48
(~)(Ê)(Þ)
302
304
Series
2018-LTV1
Class
A4
4.000%
due
04/25/49
(~)(Ê)(Þ)
140
140
Series
2020-3
Class
A15
3.500%
due
08/25/50
(~)(Ê)(Þ)
328
334
Series
2021-6
Class
A6
2.500%
due
10/25/51
(~)(Ê)(Þ)
4,862
4,992
Series
2021-7
Class
A6
2.500%
due
11/25/51
(~)(Ê)(Þ)
4,813
4,942
Mello
Mortgage
Capital
Acceptance
Series
2021-INV1
Class
A4
2.500%
due
06/25/51
(~)(Ê)(Þ)
1,517
1,560
MHC
Commercial
Mortgage
Trust
Series
2021-MHC
Class
A
0.951%
due
04/15/26
(USD
1
Month
LIBOR
+
0.801%)(Ê)(Þ)
2,275
2,276
Morgan
Stanley
Capital
I
Trust
Series
2018-BOP
Class
E
2.135%
due
06/15/35
(USD
1
Month
LIBOR
+
1.950%)(Ê)(Þ)
1,669
1,643
Series
2019-NUGS
Class
E
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.744%
due
12/15/36
(USD
1
Month
LIBOR
+
2.244%)(Ê)(Þ)
1,970
1,978
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
Series
2017-237P
Class
D
3.865%
due
09/13/39
(~)(Ê)(Þ)
1,500
1,493
Series
2017-237P
Class
XA
Interest
Only
STRIP
0.468%
due
09/13/39
(~)(Ê)(Þ)
8,761
175
Series
2017-237P
Class
XB
Interest
Only
STRIP
0.175%
due
09/13/39
(~)(Ê)(Þ)
5,418
29
Oaktown
Re
III,
Ltd.
Series
2019-1A
Class
M1B
2.080%
due
07/25/29
(USD
1
Month
LIBOR
+
1.950%)(Ê)(Þ)
1,355
1,355
Oaktown
Re
VI,
Ltd.
Series
2021-1A
Class
M1B
2.060%
due
10/25/33
(SOFR
30
Day
Average
+
2.050%)(Ê)(Þ)
1,465
1,484
Oaktown
Re,
Ltd.
Series
2020-2A
Class
M1A
2.543%
due
10/25/30
(USD
1
Month
LIBOR
+
2.400%)(Ê)(Þ)
506
508
Preston
Ridge
Partners
Mortgage
LLC
Series
2020-3
Class
A1
2.857%
due
09/25/25
(~)(Ê)(Þ)
499
502
Series
2020-6
Class
A1
2.363%
due
11/25/25
(~)(Ê)(Þ)
597
599
Series
2021-3
Class
A1
1.867%
due
04/25/26
(~)(Ê)(Þ)
1,198
1,204
Radnor
RE,
Ltd.
Series
2020-1
Class
M1A
1.118%
due
02/25/30
(USD
1
Month
LIBOR
+
0.950%)(Ê)(Þ)
567
567
RCKT
Mortgage
Trust
Series
2021-2
Class
A5
2.500%
due
06/25/51
(~)(Ê)(Þ)
2,838
2,904
Sequoia
Mortgage
Trust
Series
2015-1
Class
A1
3.500%
due
01/25/45
(~)(Ê)(Þ)
135
138
Series
2021-4
Class
A10
2.500%
due
06/25/51
(~)(Ê)(Þ)
2,603
2,671
Towd
Point
Asset
Funding
LLC
Series
2021-HE1
Class
A1
0.918%
due
02/25/63
(~)(Ê)(Þ)
953
952
UWM
Mortgage
Trust
Series
2021-1
Class
A4
2.500%
due
06/25/51
(~)(Ê)(Þ)
2,795
2,859
Washington
Mutual
Mortgage
Pass-
Through
Certificates
Trust
Series
2005-10
Class
3CB1
6.000%
due
11/25/35
484
455
Wells
Fargo
Mortgage
Backed
Securities
Trust
Series
2020-3
Class
A1
3.000%
due
06/25/50
(~)(Ê)(Þ)
1,644
1,676
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
90
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
WinWater
Mortgage
Loan
Trust
Series
2014-1
Class
A1
3.847%
due
06/20/44
(~)(Ê)(Þ)
207
209
162,536
Municipal
Bonds
-
0.1%
American
Municipal
Power,
Inc.
Revenue
Bonds
8.084%
due
02/15/50
70
132
Port
Authority
of
New
York
&
New
Jersey
Revenue
Bonds
4.926%
due
10/01/51
110
152
Regents
of
the
University
of
California
Medical
Center
Pooled
Revenue
Bonds
3.006%
due
05/15/50
230
237
State
of
California
General
Obligation
Unlimited
7.300%
due
10/01/39
10
16
537
Non-US
Bonds
-
7.3%
Alba
PLC
Series
2006-2
Class
A3A
0.363%
due
12/15/38
(GBP
3
Month
LIBOR
+
0.170%)(Ê)
GBP
463
620
Series
2007-1
Class
A3
0.342%
due
03/17/39
(GBP
3
Month
LIBOR
+
0.170%)(Ê)
GBP
775
1,035
Andorra
Government
International
Bond
1.250%
due
05/06/31
EUR
3,100
3,744
Aqueduct
European
CLO
DAC
Series
2021-3A
Class
AR
0.930%
due
08/15/34
(3
Month
EURIBOR
+
0.930%)(Ê)(Þ)
EUR
1,296
1,534
Australia
Government
International
Bond
Series
155
2.500%
due
05/21/30
AUD
4,326
3,549
Avoca
CLO
XXIII
DAC
0.840%
due
04/15/34
(~)(Ê)(Þ)
EUR
1,588
1,876
Avoca
CLO
XXIV
DAC
0.900%
due
07/15/34
EUR
1,000
1,184
Banque
Centrale
de
Tunisie
Government
International
Bond
Series
REGS
6.750%
due
10/31/23
EUR
2,024
2,316
6.375%
due
07/15/26
EUR
1,163
1,272
Banque
Ouest
Africaine
de
Developpement
Series
REGS
2.750%
due
01/22/33
EUR
999
1,240
Carin
CLO
VIII
BV
0.860%
due
10/30/30
EUR
2,246
2,666
China
Government
International
Bond
0.625%
due
11/25/35
EUR
174
201
Crosthwaite
Park
CLO
DAC
0.850%
due
03/18/34
EUR
1,266
1,497
Eurosail
PLC
Series
2006-4X
Class
A3C
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
0.946%
due
12/10/44
(GBP
3
Month
LIBOR
+
0.160%)(Ê)
GBP
305
420
Eurosail
PRIME-UK
PLC
Series
2007-PR1X
Class
A1
0.598%
due
09/13/45
(GBP
3
Month
LIBOR
+
0.400%)(Ê)
GBP
618
836
Eurosail
-UK
PLC
0.784%
due
09/13/45
GBP
777
1,059
Harvest
CLO
XXVI
DAC
Series
2021-26A
Class
A
1.000%
due
01/15/34
(3
Month
EURIBOR
+
0.940%)(Ê)(Þ)
EUR
1,402
1,662
Indonesia
Government
International
Bond
Series
FR87
6.500%
due
02/15/31
IDR
7,466,000
511
Italy
Buoni
Poliennali
Del
Tesoro
3.850%
due
09/01/49
(Þ)
EUR
227
392
2.150%
due
03/01/72
(Þ)
EUR
642
744
Japan
2
Year
Government
International
Bond
Series
423
0.005%
due
04/01/23
JPY
1,300,000
11,728
Japan
20
Year
Government
International
Bond
Series
68
2.200%
due
03/20/24
JPY
410,550
3,929
Last
Mile
Securities
0.900%
due
08/17/31
EUR
1,044
1,241
Madison
Park
Euro
Funding
IX
DAC
Series
2021-9A
Class
AR
0.880%
due
07/15/35
(3
Month
EURIBOR
+
0.880%)(Ê)(Þ)
EUR
1,123
1,328
Mexican
Bonos
de
Desarrollo
Series
M
30
8.500%
due
11/18/38
MXN
13,850
766
Mexico
Government
International
Bond
2.125%
due
10/25/51
EUR
1,539
1,537
4.000%
due
03/15/15
EUR
1,011
1,293
Newgate
Funding
PLC
Series
2006-1
Class
A4
1.086%
due
12/01/50
(GBP
3
Month
LIBOR
+
0.190%)(Ê)
GBP
654
892
Series
2006-3X
Class
A3B
3.732%
due
12/01/50
(3
Month
EURIBOR
+
0.170%)(Ê)
EUR
2,713
3,148
Series
2007-1X
Class
A3
0.240%
due
12/01/50
(GBP
3
Month
LIBOR
+
0.160%)(Ê)
GBP
401
536
Paragon
Mortgages
(No.
12)
PLC
0.293%
due
11/15/38
(~)(Ê)
GBP
2,808
3,839
Petroleos
Mexicanos
Series
14-2
7.470%
due
11/12/26
MXN
51,280
2,304
Series
REGS
7.190%
due
09/12/24
MXN
68,598
3,252
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
91
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Republic
of
South
Africa
Government
International
Bond
Series
2037
8.500%
due
01/31/37
ZAR
24,089
1,450
RMAC
Securities
No.
1
PLC
0.234%
due
06/12/44
GBP
482
644
Series
2006-NS1X
Class
A2A
1.050%
due
06/12/44
(GBP
3
Month
LIBOR
+
0.150%)(Ê)
GBP
401
541
Series
2006-NS4X
Class
A3A
0.368%
due
06/12/44
(GBP
3
Month
LIBOR
+
0.170%)(Ê)
GBP
862
1,155
Romania
Government
International
Bond
Series
REGS
2.625%
due
12/02/40
EUR
1,465
1,721
2.750%
due
04/14/41
EUR
442
520
Taurus
UK
Designated
Activity
Co.
Series
2021-UK1A
Class
A
0.900%
due
05/17/31
(3
Month
SONIA
Deposit
Rate
+
0.850%)(Ê)(Þ)
GBP
500
694
Series
2021-UK1A
Class
B
1.350%
due
05/17/31
(3
Month
SONIA
Deposit
Rate
+
1.300%)(Ê)(Þ)
GBP
500
693
Towd
Point
Mortgage
Funding
Series
2019-A13X
Class
B
1.251%
due
07/20/45
(3
Month
SONIA
Deposit
Rate
+
1.200%)(Ê)
GBP
1,612
2,219
Warwick
Finance
Residential
Mortgages
Number
Three
PLC
0.854%
due
12/21/49
(~)(Ê)(Þ)
GBP
1,016
1,407
75,195
United
States
Government
Treasuries
-
17.6%
United
States
Treasury
Notes
1.625%
due
08/15/22
8,625
8,773
0.125%
due
08/31/22
4,750
4,750
1.750%
due
05/15/23
6,260
6,436
0.125%
due
05/31/23
1,020
1,018
1.375%
due
06/30/23
5,420
5,542
0.125%
due
07/15/23
3,460
3,451
1.250%
due
07/31/23
2,550
2,602
1.625%
due
10/31/23
4,360
4,493
2.125%
due
11/30/23
3,870
4,037
0.125%
due
01/15/24
18,549
18,438
0.250%
due
05/15/24
3,750
3,729
1.250%
due
08/31/24
3,615
3,700
2.000%
due
02/15/25
3,895
4,090
2.125%
due
05/15/25
3,485
3,680
2.000%
due
08/15/25
3,688
3,881
3.000%
due
10/31/25
2,925
3,204
2.250%
due
11/15/25
3,660
3,894
1.625%
due
02/15/26
3,338
3,460
2.250%
due
03/31/26
2,855
3,043
1.625%
due
05/15/26
3,050
3,161
0.750%
due
05/31/26
280
278
0.875%
due
06/30/26
430
430
1.500%
due
08/15/26
6,980
7,187
2.375%
due
05/15/27
3,125
3,364
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
0.500%
due
05/31/27
6,160
5,964
0.750%
due
01/31/28
3,272
3,185
2.750%
due
02/15/28
4,462
4,916
1.250%
due
04/30/28
100
100
2.875%
due
05/15/28
600
667
2.875%
due
08/15/28
3,410
3,792
2.375%
due
05/15/29
2,630
2,838
1.750%
due
11/15/29
3,477
3,589
0.625%
due
08/15/30
5,797
5,401
0.875%
due
11/15/30
4,735
4,503
1.625%
due
05/15/31
460
467
3.125%
due
05/15/31
3,397
3,843
1.125%
due
05/15/40
3,030
2,616
1.125%
due
08/15/40
2,260
1,944
1.375%
due
11/15/40
2,804
2,519
2.250%
due
05/15/41
250
260
2.750%
due
11/15/42
1,365
1,537
2.875%
due
05/15/43
1,490
1,714
3.625%
due
02/15/44
1,949
2,519
3.125%
due
08/15/44
1,425
1,710
2.875%
due
08/15/45
1,365
1,578
3.000%
due
05/15/47
1,250
1,486
2.750%
due
11/15/47
1,760
2,004
3.000%
due
02/15/48
1,530
1,824
3.125%
due
05/15/48
1,550
1,890
3.375%
due
11/15/48
1,595
2,036
2.875%
due
05/15/49
1,710
2,002
2.375%
due
11/15/49
2,552
2,717
1.250%
due
05/15/50
5,010
4,091
1.875%
due
02/15/51
210
200
1.625%
due
05/15/51
40
36
2.375%
due
05/15/51
410
438
181,027
Total
Long-Term
Investments
(cost
$841,255
)
853,224
Common
Stocks
-
0.0%
Technology
-
0.0%
Sungard
Availability
Services,
LP(Æ)(Š)
1,760
—
Total
Common
Stocks
(cost
$44)
—
Preferred
Stocks
-
0.0%
Financial
Services
-
0.0%
TPG
RE
Finance
Trust,
Inc.
6.25%
due
6/30/2026(¢)
9,493
238
Total
Preferred
Stocks
(cost
$237)
238
Short-Term
Investments
-
14.9%
Air
Lease
Corp.
Series
3Y
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
92
Strategic
Bond
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
3.500%
due
01/15/22
40
41
Apache
Corp.
3.250%
due
04/15/22
16
16
BHP
Billiton
Finance
USA,
Ltd.
2.875%
due
02/24/22
5
5
BP
Capital
Markets
America,
Inc.
3.245%
due
05/06/22
10
10
Continental
Airlines
Pass-Through
Trust
Series
071A
Class
A
5.983%
due
04/19/22
39
40
Ford
Motor
Credit
Co.
LLC
5.875%
due
08/02/21
200
201
Series
FXD
3.813%
due
10/12/21
200
202
NBK
SPC,
Ltd.
2.750%
due
05/30/22
(Þ)
714
727
Pacific
Gas
and
Electric
Co.
1.750%
due
06/16/22
380
380
Syngenta
Finance
NV
3.125%
due
03/28/22
718
730
Teva
Pharmaceutical
Finance
Netherlands
III
BV
2.200%
due
07/21/21
(ç)
40
40
U.S.
Cash
Management
Fund(@)
108,369,051(∞)
108,347
UBS
Group
AG
1.750%
due
04/21/22
(Þ)
220
222
UniCredit
SpA
6.572%
due
01/14/22
(Þ)
720
742
United
States
Treasury
Notes
2.375%
due
03/15/22
34,397
34,956
0.125%
due
05/31/22
3,210
3,211
1.875%
due
05/31/22
2,485
2,526
Total
Short-Term
Investments
(cost
$152,346)
152,396
Total
Investments
-
98.0%
(identified
cost
$993,882)
1,005,858
Other
Assets
and
Liabilities,
Net
-
2.0%
20,299
Net
Assets
-
100.0%
1,026,157
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
93
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Acquisition
Principal
Amount
($)
Cost
per
Unit
Cost
(000)
Fair
Value
(000)
Securities
Date
or
shares
$
$
$
25.8%
Abu
Dhabi
Government
International
Bond
04/08/20
270,000
96.22
260
311
Abu
Dhabi
Government
International
Bond
04/12/21
200,000
95.88
192
193
Abu
Dhabi
National
Energy
Co.
PJSC
04/15/21
200,000
111.79
224
224
African
Export-Import
Bank
(The)
05/10/21
1,530,000
100.00
1,530
1,548
Alimentation
Couche-Tard,
Inc.
09/19/17
702,000
102.46
719
772
Ambac
Assurance
Corp.
02/09/17
881
168.77
1
1
Ambac
LSNI
LLC
02/09/17
3,640,010
99.36
3,659
3,639
American
Airlines
Group,
Inc.
04/12/21
160,000
104.48
167
169
American
Airlines
Group,
Inc.
04/12/21
140,000
107.11
150
151
Americo
Life,
Inc.
04/12/21
70,000
99.73
70
71
AmFam
Holdings,
Inc.
04/09/21
130,000
103.55
135
140
AmFam
Holdings,
Inc.
04/12/21
180,000
100.15
180
184
AMSR
Trust
06/23/21
651,000
100.00
651
651
Amur
Equipment
Finance
Receivables
IX
LLC
04/14/21
735,000
99.99
735
734
Anglo
American
Capital
PLC
04/12/21
360,000
113.15
407
411
Aqueduct
European
CLO
DAC
06/15/21
EUR
1,296,000
121.27
1,572
1,534
Arbor
Realty
CLO,
Ltd.
05/26/21
1,029,000
100.00
1,029
1,030
AT&T,
Inc.
06/13/16
83,000
95.27
79
83
AT&T,
Inc.
05/31/19
782,000
101.95
797
775
AT&T,
Inc.
04/05/21
240,000
95.53
229
250
Aviation
Capital
Group
LLC
04/13/21
170,000
111.98
190
192
Avoca
CLO
XXIII
DAC
04/23/21
EUR
1,588,000
121.00
1,921
1,876
Avolon
Holdings
Funding,
Ltd.
04/12/21
150,000
100.89
151
154
Avolon
Holdings
Funding,
Ltd.
04/12/21
130,000
104.77
136
139
Avolon
Holdings
Funding,
Ltd.
04/12/21
370,000
105.54
390
401
Banco
de
Bogota
SA
09/22/17
686,000
103.85
712
723
Banco
de
Credito
del
Peru
12/04/19
693,000
102.88
713
726
Banco
de
Credito
e
Inversiones
SA
04/12/21
882,000
106.54
940
946
Banco
Inbursa
SA
Institucion
de
Banca
Multiple
01/06/20
711,000
102.80
731
763
Banco
Mercantil
del
Norte
SA
04/09/21
240,000
117.44
282
290
Bangkok
Bank
PCL
11/09/18
219,000
99.74
218
227
Banistmo
SA
12/07/17
729,000
100.29
731
744
Bank
of
China,
Ltd.
04/12/21
833,000
111.08
925
929
Bayer
US
Finance
II
LLC
06/18/21
961,000
107.10
1,029
1,029
Bayer
US
Finance
LLC
08/02/18
726,000
100.42
729
780
BDS,
Ltd.
05/14/21
1,558,000
100.00
1,558
1,558
Bellemeade
Re,
Ltd.
09/29/20
1,912,709
101.05
1,933
1,925
Bellemeade
Re,
Ltd.
02/08/21
1,388,401
101.32
1,407
1,392
Bellemeade
Re,
Ltd.
04/13/21
2,309,000
100.18
2,313
2,313
Bellemeade
Re,
Ltd.
04/13/21
1,780,000
100.72
1,793
1,793
Bellemeade
Re,
Ltd.
04/23/21
881,000
101.04
890
892
Bellemeade
Re,
Ltd.
06/11/21
1,143,000
100.00
1,143
1,144
Bellemeade
Re,
Ltd.
06/11/21
2,607,000
100.00
2,606
2,608
Benchmark
Mortgage
Trust
03/24/21
2,448,000
101.25
2,479
2,526
Bermuda
Government
International
Bond
04/12/21
380,000
98.43
374
379
Berry
Petroleum
Corp.
04/13/21
490,000
98.32
482
497
Bharti
Airtel
International
Netherlands
BV
09/26/19
693,000
102.83
713
734
Blackbird
Capital
Aircraft
Lease
Securitization,
Ltd.
11/04/16
572,438
99.74
571
576
BNP
Paribas
SA
08/07/18
200,000
99.59
199
231
BNP
Paribas
SA
06/02/20
680,000
102.00
694
701
BNP
Paribas
SA
06/10/20
722,000
109.91
794
815
BNP
Paribas
SA
04/09/21
400,000
91.11
364
378
BNP
Paribas
SA
06/23/21
210,000
100.00
210
210
BOC
Aviation
USA
Corp.
05/06/21
200,000
100.19
200
202
CAMB
Commercial
Mortgage
Trust
01/25/19
987,000
100.13
988
989
Cameron
LNG
LLC
04/09/21
70,000
107.98
76
78
Canyon
Capital
CLO,
Ltd.
03/03/21
1,000,000
100.51
1,005
1,003
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
04/14/20
10,000
101.81
10
10
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
04/12/21
160,000
105.06
168
168
Cedar
Funding,
Ltd.
07/03/18
1,600,000
100.00
1,600
1,600
Cencosud
SA
06/18/21
930,000
109.80
1,021
1,017
Chase
Auto
Credit
Liked
Notes
03/16/21
4,495,000
100.00
4,495
4,498
CHS/Community
Health
Systems,
Inc.
04/12/21
140,000
103.92
145
147
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
94
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Acquisition
Principal
Amount
($)
Cost
per
Unit
Cost
(000)
Fair
Value
(000)
Securities
Date
or
shares
$
$
$
Citigroup
Commercial
Mortgage
Trust
02/12/19
1,418,000
0.99
1,403
1,438
Citigroup
Mortgage
Loan
Trust,
Inc.
02/01/17
44,460
97.90
44
45
Cleveland
Electric
Illuminating
Co.
(The)
04/12/21
470,000
103.31
486
502
CLI
Funding
VI
LLC
10/02/20
1,556,826
99.98
1,557
1,569
Comision
Federal
de
Electricidad
04/12/21
200,000
96.81
194
198
Commercial
Mortgage
Trust
06/05/19
899,000
100.00
899
856
Commonwealth
Bank
of
Australia
04/09/21
200,000
105.36
211
220
Commonwealth
Bank
of
Australia
04/12/21
200,000
97.94
196
200
Commonwealth
Bank
of
Australia
06/17/21
886,000
118.08
1,046
1,044
Comstock
Resources,
Inc.
06/14/21
330,000
100.42
331
337
ConocoPhillips
Co.
08/22/18
946,000
105.26
1,036
1,063
CORE
Mortgage
Trust
03/01/19
1,216,000
100.00
1,216
1,213
Covey
Park
Energy
LLC
04/13/21
180,000
103.93
187
187
Credicorp
,
Ltd.
04/12/21
922,000
101.37
935
936
Credit
Agricole
SA
06/11/20
734,000
108.00
793
807
Credit
Suisse
Group
AG
07/07/20
699,000
110.96
776
778
Credit
Suisse
Group
AG
04/12/21
750,000
107.49
806
816
Credit
Suisse
Group
AG
04/12/21
550,000
108.50
597
602
Credit
Suisse
Group
AG
04/14/21
560,000
108.48
607
624
Credit
Suisse
Group
AG
05/10/21
480,000
100.00
480
495
Credit
Suisse
Mortgage
Trust
05/28/19
1,282,000
100.00
1,282
1,284
DAE
Funding
LLC
06/15/21
220,000
99.43
219
220
Daimler
Finance
NA
LLC
10/02/20
792,000
102.01
808
811
Danone
SA
04/22/19
718,000
100.07
719
748
Danske
Bank
A/S
03/11/19
1,512,000
106.71
1,617
1,677
Danske
Bank
A/S
09/17/19
200,000
101.84
204
213
DBGS
Mortgage
Trust
04/03/19
985,000
101.28
998
1,029
DCP
Midstream
Operating,
LP
12/11/19
50,000
107.82
54
59
Delta
Air
Lines,
Inc.
05/11/20
1,032,000
101.31
1,061
1,205
Delta
Air
Lines,
Inc.
09/16/20
180,000
103.63
187
193
Delta
Air
Lines,
Inc.
09/16/20
300,000
106.84
321
334
Deutsche
Mortgage
Securities,
Inc.
Re-REMIC
Trust
01/04/17
316,659
100.55
318
322
Deutsche
Telekom
International
Finance
BV
04/12/21
855,000
109.86
939
940
Devon
Energy
Corp.
06/07/21
19,000
106.82
20
20
Devon
Energy
Corp.
06/07/21
220,000
108.74
239
242
Devon
Energy
Corp.
06/07/21
153,000
110.05
168
170
Dryden
50
Senior
Loan
Fund
04/08/21
1,230,000
100.00
1,230
1,230
Eagle
Re,
Ltd.
01/27/20
511,000
100.00
511
510
Eagle
Re,
Ltd.
12/17/20
732,000
100.26
734
737
Eagle
Re,
Ltd.
04/09/21
1,268,000
100.00
1,268
1,284
Endo
Luxembourg
Finance
Co.
SARL
04/12/21
110,000
98.93
109
108
Enel
Finance
International
NV
01/05/18
706,000
100.93
713
773
EnLink
Midstream
LLC
04/13/21
280,000
99.73
279
296
EQT
Corp.
05/10/21
30,000
100.00
30
31
EQT
Corp.
05/10/21
30,000
100.00
30
31
Falabella
SA
04/12/21
892,000
104.64
933
928
Fannie
Mae
Connecticut
Avenue
Securities
Trust
05/13/21
1,419,322
100.78
1,430
1,429
Fidelity
&
Guaranty
Life
Holdings,
Inc.
04/16/21
50,000
114.29
57
58
First
Quantum
Minerals,
Ltd.
04/12/21
200,000
103.83
208
208
First
Quantum
Minerals,
Ltd.
04/13/21
480,000
108.99
523
523
FirstKey
Homes
Trust
07/31/20
879,981
99.99
880
880
FirstKey
Homes
Trust
10/02/20
3,397,485
100.80
3,425
3,392
FNA
VI
LLC
01/22/21
710,008
99.98
710
709
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
10/13/20
123,041
100.00
123
123
Freddie
Mac
Structured
Agency
Credit
Risk
Debt
Notes
05/24/21
2,657,000
100.05
2,658
2,657
Fresenius
Medical
Care
US
Finance
III,
Inc.
06/21/21
1,015,000
101.64
1,032
1,035
Fresnillo
PLC
04/09/21
260,000
98.41
256
264
Genting
New
York
LLC
04/13/21
440,000
100.35
442
444
Glencore
Funding
LLC
10/12/16
40,000
100.72
40
44
Glencore
Funding
LLC
09/13/17
220,000
100.41
221
244
Glencore
Funding
LLC
01/16/19
50,000
95.17
48
55
Glencore
Funding
LLC
03/05/19
550,000
102.52
564
593
Glencore
Funding
LLC
04/13/21
140,000
100.45
141
142
Goldentree
Loan
Management
US
CLO
2,
Ltd.
10/26/18
1,300,000
100.03
1,300
1,300
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
95
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Acquisition
Principal
Amount
($)
Cost
per
Unit
Cost
(000)
Fair
Value
(000)
Securities
Date
or
shares
$
$
$
Goldentree
Loan
Management
US
CLO
7,
Ltd.
04/01/21
1,147,000
100.00
1,147
1,147
Harvest
CLO
XXVI
DAC
06/24/21
EUR
1,402,000
119.34
1,673
1,662
HGI
CRE
CLO,
Ltd.
05/06/21
2,190,000
100.03
2,191
2,190
Highlands
Holdings
Bond
Issuer,
Ltd.
04/12/21
290,000
106.93
310
307
Hilton
Domestic
Operating
Co.,
Inc.
04/16/20
40,000
100.00
40
43
Hilton
Domestic
Operating
Co.,
Inc.
04/16/20
120,000
100.26
120
126
Hilton
USA
Trust
11/22/16
1,840,000
89.66
1,688
1,944
Hilton
USA
Trust
05/26/17
226,000
99.73
225
227
HMH
Trust
06/09/17
1,170,000
99.98
1,170
1,106
HOM
RE,
Ltd.
01/28/21
844,000
100.00
844
840
Hospitality
Mortgage
Trust
05/16/19
1,216,234
100.00
1,216
1,216
ICICI
Bank,
Ltd.
09/06/18
782,000
101.14
791
846
ING
Bank
NV
04/16/21
935,000
111.02
1,038
1,037
Innogy
Finance
BV
12/02/20
621,000
146.07
907
904
Intesa
Sanpaolo
SpA
07/10/17
600,000
100.86
605
616
Intesa
Sanpaolo
SpA
01/05/18
200,000
99.92
200
208
Intesa
Sanpaolo
SpA
04/22/19
846,000
96.60
817
914
Intesa
Sanpaolo
SpA
04/09/21
200,000
114.53
229
233
Intesa
Sanpaolo
SpA
04/12/21
200,000
108.55
217
218
Intesa
Sanpaolo
SpA
05/24/21
200,000
100.00
200
205
Intesa
Sanpaolo
SpA
05/24/21
400,000
100.59
402
414
Invitation
Homes
Trust
09/09/20
1,361,806
99.63
1,357
1,363
Italy
Buoni
Poliennali
Del
Tesoro
04/07/21
EUR
642,000
117.34
753
744
Italy
Buoni
Poliennali
Del
Tesoro
06/01/21
EUR
227,000
177.08
402
392
JPMorgan
Mortgage
Trust
05/15/20
139,845
103.25
144
140
JPMorgan
Mortgage
Trust
06/05/20
301,685
103.16
311
304
JPMorgan
Mortgage
Trust
03/30/21
327,757
102.17
335
334
JPMorgan
Mortgage
Trust
04/26/21
4,862,277
102.82
4,999
4,992
JPMorgan
Mortgage
Trust
05/24/21
4,813,067
102.90
4,953
4,942
JPMorgan
Mortgage
Trust
06/24/21
USD
4,335,000
102.63
4,449
4,449
KazMunayGas
National
Co.
JSC
04/17/18
200,000
100.00
200
239
Kerry
Group
Financial
Services
Unlimited
Co.
06/21/21
1,000,000
103.64
1,036
1,036
KKR
Group
Finance
Co.
II
LLC
02/20/15
10,000
109.35
11
13
KKR
Group
Finance
Co.
III
LLC
04/16/21
100,000
125.91
126
130
Klabin
Austria
GmbH
04/12/21
200,000
95.39
191
196
LCM
XXIII,
Ltd.
01/29/20
1,020,000
100.00
1,020
1,020
LCM
XXV,
Ltd.
07/10/17
1,904,000
100.05
1,905
1,904
Lithia
Motors,
Inc.
06/04/21
190,000
103.44
197
197
Lithia
Motors,
Inc.
06/07/21
110,000
105.58
116
116
Lloyds
Banking
Group
PLC
09/03/20
681,000
117.23
798
740
LPL
Holdings,
Inc.
05/10/21
80,000
100.71
81
81
Lukoil
International
Finance
BV
09/19/17
682,000
102.61
700
723
Madison
Park
Euro
Funding
IX
DAC
06/09/21
EUR
1,123,000
121.77
1,367
1,328
Madison
Park
Funding
XVIII,
Ltd.
12/01/17
1,922,000
99.82
1,919
1,923
Madison
Park
Funding,
Ltd.
01/15/21
1,158,000
100.00
1,158
1,158
Magnetite
XVIII,
Ltd.
10/31/18
1,488,000
100.00
1,488
1,488
Mars,
Inc.
04/09/21
260,000
93.41
243
250
Massachusetts
Mutual
Life
Insurance
Co.
04/09/21
70,000
100.37
70
73
MEG
Energy
Corp.
01/19/21
80,000
101.27
81
83
MEG
Energy
Corp.
04/12/21
190,000
105.43
200
202
MEG
Energy
Corp.
04/29/21
90,000
103.43
93
93
Melco
Resorts
Finance,
Ltd.
04/12/21
240,000
105.61
253
253
Mello
Mortgage
Capital
Acceptance
06/14/21
1,517,000
102.67
1,557
1,560
MHC
Commercial
Mortgage
Trust
04/06/21
2,275,000
99.76
2,270
2,276
Microchip
Technology,
Inc.
04/14/21
390,000
99.99
390
390
Microchip
Technology,
Inc.
05/18/21
160,000
100.00
160
159
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets,
Ltd.
06/25/20
250,000
104.17
260
275
Mill
City
Mortgage
Trust
04/28/21
1,492,000
106.04
1,582
1,596
Mizuho
Financial
Group
Cayman
3,
Ltd.
05/03/21
930,000
108.94
1,013
1,014
Morgan
Stanley
Capital
I
Trust
08/15/18
1,668,666
100.00
1,669
1,643
Morgan
Stanley
Capital
I
Trust
12/12/19
1,970,000
99.47
1,959
1,978
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
5,418,000
0.54
29
29
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
8,761,000
2.00
175
175
Morgan
Stanley
Mortgage
Capital
Holdings
LLC
Trust
08/11/17
1,500,000
97.40
1,461
1,493
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
96
Strategic
Bond
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Acquisition
Principal
Amount
($)
Cost
per
Unit
Cost
(000)
Fair
Value
(000)
Securities
Date
or
shares
$
$
$
National
Bank
of
Canada
10/05/20
780,000
102.10
796
797
Navient
Private
Education
Refi
Loan
Trust
11/03/20
783,476
99.99
783
789
Navient
Private
Education
Refi
Loan
Trust
01/19/21
2,360,248
99.87
2,357
2,356
Navient
Private
Education
Refi
Loan
Trust
03/16/21
1,540,412
100.04
1,541
1,540
Navient
Private
Education
Refi
Loan
Trust
05/18/21
2,212,000
99.98
2,211
2,217
Navient
Student
Loan
Trust
07/20/20
603,967
99.99
604
607
Navient
Student
Loan
Trust
07/23/20
3,270,263
101.04
3,304
3,322
NBK
SPC,
Ltd.
09/30/19
714,000
100.26
716
727
Nestle
Holdings,
Inc.
01/03/20
698,000
102.95
719
742
Netflix,
Inc.
04/12/21
110,000
115.67
127
131
Netflix,
Inc.
04/12/21
80,000
119.07
95
97
New
York
Life
Insurance
Co.
04/09/21
180,000
107.94
194
201
New
York
Life
Insurance
Co.
04/09/21
50,000
121.01
61
63
NGPL
PipeCo
LLC
09/26/19
553,000
128.23
709
791
Nippon
Life
Insurance
Co.
04/09/21
250,000
96.14
240
245
Nissan
Motor
Acceptance
Corp.
09/10/20
300,000
100.00
300
330
Nissan
Motor
Acceptance
Corp.
09/10/20
280,000
100.00
280
299
Nissan
Motor
Acceptance
Corp.
04/12/21
270,000
111.23
300
305
Nissan
Motor
Acceptance
Corp.
04/14/21
440,000
104.49
460
459
Nordea
Bank
Abp
04/16/21
913,000
111.33
1,016
1,028
Northern
Natural
Gas
Co.
08/02/18
631,000
108.83
687
744
Northern
Oil
and
Gas,
Inc.
04/12/21
190,000
100.15
190
205
Northwestern
Mutual
Life
Insurance
Co.
(The)
04/09/21
510,000
101.74
519
546
Northwestern
Mutual
Life
Insurance
Co.
(The)
04/09/21
80,000
104.04
83
88
NRG
Energy,
Inc.
04/12/21
390,000
99.95
390
393
NTT
Finance
Corp.
04/12/21
200,000
99.61
199
203
NXP
BV
/
NXP
Funding
LLC
04/12/21
80,000
105.99
85
87
Oaktown
Re
III,
Ltd.
01/26/21
1,355,000
100.49
1,362
1,355
Oaktown
Re
VI,
Ltd.
04/14/21
1,465,000
100.00
1,465
1,484
Oaktown
Re,
Ltd.
10/19/20
505,841
100.00
506
508
OCP
CLO,
Ltd.
03/23/21
846,544
100.09
847
847
OCP
SA
06/10/21
200,000
99.37
199
202
OCP
SA
06/11/21
200,000
100.43
201
202
Octane
Receivables
Trust
04/27/21
2,079,515
99.99
2,079
2,081
OneMain
Financial
Issuance
Trust
08/13/20
5,679,000
101.45
5,761
5,774
OneMain
Financial
Issuance
Trust
10/21/20
1,242,000
104.89
1,303
1,296
OneMain
Financial
Issuance
Trust
10/21/20
500,000
106.54
533
537
OneMain
Financial
Issuance
Trust
05/17/21
4,696,000
100.26
4,708
4,714
Paraguay
Government
International
Bond
04/09/21
200,000
114.09
228
233
Park
Aerospace
Holdings,
Ltd.
03/06/19
4,000
100.77
4
4
Parsley
Energy
LLC
09/25/20
10,000
92.91
9
11
Petroleos
del
Peru
SA
04/09/21
200,000
106.18
212
213
Preston
Ridge
Partners
Mortgage
LLC
02/14/20
2,124,411
99.87
2,122
2,134
Preston
Ridge
Partners
Mortgage
LLC
09/30/20
499,298
100.00
499
502
Preston
Ridge
Partners
Mortgage
LLC
12/01/20
597,396
100.00
597
599
Preston
Ridge
Partners
Mortgage
LLC
04/28/21
1,198,021
100.00
1,198
1,204
Prosus
NV
02/03/21
909,000
100.69
915
874
Provincia
de
Buenos
Aires
02/08/17
140,000
99.87
140
61
Provincia
de
Cordoba
04/12/21
230,000
60.23
139
155
Provincia
de
Cordoba
04/12/21
200,000
69.50
139
153
Qatar
Government
International
Bond
04/07/20
360,000
100.00
360
438
Qatar
Petroleum
06/30/21
670,000
98.94
663
663
Radnor
RE,
Ltd.
01/21/20
567,000
100.00
567
567
Radnor
RE,
Ltd.
06/15/21
1,679,451
100.58
1,689
1,689
Range
Resources
Corp.
04/12/21
150,000
107.42
161
169
RCKT
Mortgage
Trust
06/22/21
2,838,000
102.09
2,897
2,904
RESIMAC
Premier
09/23/20
795,921
100.00
796
799
Resimac
,
Ltd.
03/04/21
1,559,266
100.00
1,559
1,561
Resorts
World
Las
Vegas
LLC
/
RWLV
Capital,
Inc.
07/07/20
809,000
98.63
798
838
Riserva
CLO,
Ltd.
03/01/21
940,000
100.00
940
940
Rockfield
Park
06/24/21
1,391,000
118.58
1,649
1,649
SABIC
Capiral
II
BV
07/07/20
737,000
104.93
773
790
Santander
UK
Group
Holdings
PLC
03/05/19
701,000
101.86
714
787
Santander
UK
Group
Holdings
PLC
05/14/19
238,000
102.21
243
259
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
97
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Acquisition
Principal
Amount
($)
Cost
per
Unit
Cost
(000)
Fair
Value
(000)
Securities
Date
or
shares
$
$
$
Saudi
Arabian
Oil
Co.
04/07/20
768,000
99.00
760
809
Schlumberger
Holdings
Corp.
12/10/15
40,000
99.97
40
44
Schneider
Electric
SE
02/04/19
800,000
100.91
807
825
Sequoia
Mortgage
Trust
10/21/16
134,862
102.86
139
138
Sequoia
Mortgage
Trust
05/06/21
2,603,079
102.78
2,675
2,671
Shackleton
CLO,
Ltd.
04/04/18
930,000
100.00
930
926
Siemens
Financieringsmaatschappij
NV
01/04/21
891,000
103.70
924
920
Sky,
Ltd.
06/18/21
941,000
109.25
1,028
1,028
Societe
Generale
SA
12/11/19
700,000
104.96
735
762
SoFi
Professional
Loan
Program
Trust
07/20/20
1,142,136
101.92
1,164
1,159
Solar
Star
Funding
LLC
04/07/20
627,481
111.79
701
707
SpringCastle
America
Funding
LLC
09/16/20
4,512,982
100.40
4,531
4,558
Standard
Chartered
PLC
04/12/21
754,000
125.75
948
967
Suzano
Austria
GmbH
04/09/21
200,000
130.00
260
270
TAL
Advantage
VII
LLC
09/09/20
2,081,104
100.03
2,082
2,097
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
08/11/20
70,000
100.76
71
76
Targa
Resources
Partners,
LP
/
Targa
Resources
Partners
Finance
Corp.
01/19/21
380,000
98.08
373
391
Taurus
UK
Designated
Activity
Co.
02/22/21
GBP
500,000
140.62
703
693
Taurus
UK
Designated
Activity
Co.
02/22/21
GBP
500,000
140.62
703
694
Teachers
Insurance
&
Annuity
Association
of
America
06/14/16
340,000
114.80
390
441
Tencent
Holdings,
Ltd.
04/12/21
891,000
106.28
947
949
Tencent
Holdings,
Ltd.
04/15/21
350,000
99.97
350
377
Tennessee
Gas
Pipeline
Co.
LLC
02/19/20
460,000
100.91
464
477
Tesco
PLC
09/03/20
623,000
129.93
809
828
Textainer
Marine
Containers
VII,
Ltd.
09/11/20
1,577,264
102.33
1,614
1,604
Textainer
Marine
Containers,
Ltd.
09/08/20
1,274,783
99.99
1,275
1,284
THL
Credit
Wind
River
CLO,
Ltd.
10/02/17
985,366
100.00
985
986
T-Mobile
USA,
Inc.
05/10/21
110,000
100.99
111
114
Towd
Point
Asset
Funding
LLC
02/22/21
952,764
100.00
953
952
Towd
Point
Mortgage
Trust
08/17/20
2,660,352
101.81
2,708
2,692
Towd
Point
Mortgage
Trust
03/23/21
920,000
107.80
992
1,003
Towd
Point
Mortgage
Trust
04/21/21
1,755,000
104.07
1,827
1,803
Trust
Fibra
Uno
09/20/17
685,000
104.57
716
771
UBS
AG
04/09/21
200,000
124.81
250
261
UBS
Group
AG
01/28/19
660,000
102.29
675
727
UBS
Group
AG
04/14/20
220,000
99.95
220
222
UBS
Group
AG
07/07/20
694,000
112.11
778
778
UniCredit
SpA
01/08/19
720,000
101.47
731
742
UniCredit
SpA
04/12/21
210,000
118.90
250
252
Union
Pacific
Corp.
06/05/18
250,000
100.18
250
260
United
Airlines,
Inc.
04/14/21
30,000
101.47
30
31
Upjohn,
Inc.
07/08/20
729,000
109.03
795
771
UWM
Mortgage
Trust
05/27/21
2,795,000
102.28
2,859
2,859
Videotron,
Ltd.
06/03/21
60,000
100.00
60
61
Volkswagen
Group
of
America
Finance
LLC
04/13/21
942,000
100.43
946
945
Vontier
Corp.
04/12/21
370,000
98.82
366
368
Vontier
Corp.
04/13/21
170,000
99.94
170
169
Voya
CLO,
Ltd.
02/18/20
2,448,568
100.00
2,448
2,448
Warwick
Finance
Residential
Mortgages
Number
Three
PLC
02/10/21
GBP
1,015,708
138.66
1,408
1,407
WEA
Finance
LLC
/
Westfield
UK
&
Europe
Finance
PLC
04/09/21
200,000
103.55
207
216
WEA
Finance
LLC
/
Westfield
UK
&
Europe
Finance
PLC
05/06/21
200,000
106.19
212
214
Wells
Fargo
Mortgage
Backed
Securities
Trust
04/23/21
1,644,252
102.49
1,685
1,676
WinWater
Mortgage
Loan
Trust
03/29/17
206,971
102.31
212
209
Woori
Bank
04/22/20
734,000
104.53
767
806
Wynn
Macau,
Ltd.
12/15/20
510,000
104.21
531
532
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
04/12/21
210,000
108.09
227
226
265,200
For
a
description
of
restricted
securities
see
note
7
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
98
Strategic
Bond
Fund
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
373
AUD
52,663
09/21
(130)
Canadian
10
Year
Government
Bond
Futures
58
CAD
8,440
09/21
78
Euro-
Buxl
30
Year
Bond
Futures
5
EUR
1,016
09/21
20
United
States
2
Year
Treasury
Note
Futures
197
USD
43,403
09/21
(74)
United
States
5
Year
Treasury
Note
Futures
929
USD
114,666
09/21
(267)
United
States
10
Year
Treasury
Note
Futures
1,501
USD
198,884
09/21
809
United
States
10
Year
Ultra
Treasury
Note
Futures
68
USD
10,010
09/21
111
United
States
Treasury
Long
Bond
Futures
328
USD
52,727
09/21
1,506
United
States
Treasury
Ultra
Bond
Futures
100
USD
19,269
09/21
798
Short
Positions
Canadian
10
Year
Government
Bond
Futures
36
CAD
5,239
09/21
(24)
Euro-Bund
Futures
169
EUR
29,171
09/21
(192)
Japanese
10
Year
Government
Bond
Futures
11
JPY
1,668,591
09/21
(23)
Long
Gilt
Futures
113
GBP
14,475
09/21
(137)
United
States
2
Year
Treasury
Note
Futures
91
USD
20,050
09/21
34
United
States
5
Year
Treasury
Note
Futures
54
USD
6,665
09/21
20
United
States
10
Year
Treasury
Note
Futures
18
USD
2,385
09/21
9
United
States
10
Year
Ultra
Treasury
Note
Futures
24
USD
3,533
09/21
(43)
United
States
Treasury
Long
Bond
Futures
62
USD
9,967
09/21
(120)
United
States
Treasury
Ultra
Bond
Futures
13
USD
2,505
09/21
(53)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
2,322
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
AUD
450
USD
347
09/09/21
9
Bank
of
America
AUD
510
USD
383
09/09/21
1
Bank
of
America
AUD
21,428
USD
16,624
09/09/21
550
Bank
of
America
EUR
1,123
USD
1,341
07/22/21
8
Bank
of
America
EUR
1,296
USD
1,548
07/22/21
10
Bank
of
America
NOK
2,931
USD
343
09/09/21
2
Bank
of
America
NOK
3,266
USD
391
09/09/21
11
Bank
of
America
NOK
138,066
USD
16,545
09/09/21
505
Bank
of
Montreal
USD
3,771
NOK
31,200
09/15/21
(146)
Bank
of
Montreal
SEK
33,800
USD
4,094
09/15/21
142
Bank
of
New
York
USD
3,784
NOK
31,200
09/15/21
(159)
Bank
of
New
York
SEK
33,800
USD
4,103
09/15/21
151
Citigroup
USD
113
AUD
145
07/19/21
(4)
Citigroup
USD
3,776
AUD
4,873
08/18/21
(121)
Citigroup
USD
8
CAD
10
07/19/21
—
Citigroup
USD
1,192
CAD
1,493
07/19/21
12
Citigroup
USD
2,860
CAD
3,580
07/19/21
28
Citigroup
USD
93
CLP
68,142
08/18/21
—
Citigroup
USD
143
CLP
104,262
08/18/21
(1)
Citigroup
USD
168
CLP
122,344
08/18/21
(2)
Citigroup
USD
185
CLP
136,416
08/18/21
—
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
99
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
USD
231
CLP
170,689
08/18/21
1
Citigroup
USD
370
CLP
272,048
08/18/21
—
Citigroup
USD
65
COP
242,710
08/18/21
(1)
Citigroup
USD
110
COP
413,374
08/18/21
(1)
Citigroup
USD
110
COP
414,064
08/18/21
—
Citigroup
USD
110
COP
414,705
08/18/21
—
Citigroup
USD
152
COP
564,363
08/18/21
(2)
Citigroup
USD
164
COP
606,776
08/18/21
(2)
Citigroup
USD
174
COP
652,626
08/18/21
—
Citigroup
USD
199
COP
736,163
08/18/21
(3)
Citigroup
USD
685
COP
2,582,423
08/18/21
2
Citigroup
USD
690
COP
2,557,071
08/18/21
(10)
Citigroup
USD
44
GBP
31
08/18/21
(1)
Citigroup
USD
587
GBP
415
08/18/21
(13)
Citigroup
USD
1,335
GBP
943
08/18/21
(31)
Citigroup
USD
1,658
GBP
1,172
08/18/21
(36)
Citigroup
USD
3,355
GBP
2,425
09/09/21
—
Citigroup
USD
9,947
GBP
7,015
09/09/21
(242)
Citigroup
USD
16,988
GBP
11,970
09/09/21
(428)
Citigroup
USD
177
KRW
199,721
08/18/21
—
Citigroup
USD
443
KRW
499,691
08/18/21
—
Citigroup
USD
560
KRW
631,842
08/18/21
(1)
Citigroup
USD
2,355
KRW
2,649,787
08/18/21
(10)
Citigroup
USD
1,769
KZT
770,522
08/18/21
18
Citigroup
USD
381
MXN
7,840
08/18/21
10
Citigroup
USD
809
MXN
16,651
08/18/21
22
Citigroup
USD
3,773
NOK
31,200
09/15/21
(148)
Citigroup
USD
52
NZD
72
09/09/21
(2)
Citigroup
USD
277
NZD
396
09/09/21
—
Citigroup
USD
8,427
NZD
11,549
09/09/21
(356)
Citigroup
USD
269
PHP
13,156
08/18/21
(1)
Citigroup
USD
287
PHP
14,034
08/18/21
(1)
Citigroup
USD
289
PHP
14,156
08/18/21
—
Citigroup
USD
324
PHP
15,861
08/18/21
(1)
Citigroup
USD
333
PHP
16,272
08/18/21
(1)
Citigroup
USD
333
PHP
16,282
08/18/21
(1)
Citigroup
USD
524
PHP
25,598
08/18/21
(2)
Citigroup
USD
81
THB
2,514
08/18/21
(2)
Citigroup
USD
321
THB
10,010
08/18/21
(9)
Citigroup
USD
689
THB
21,487
08/18/21
(19)
Citigroup
USD
689
THB
21,485
08/18/21
(19)
Citigroup
USD
2,370
THB
74,308
08/18/21
(52)
Citigroup
USD
2,380
THB
74,480
08/18/21
(57)
Citigroup
USD
89
ZAR
1,215
08/18/21
(4)
Citigroup
USD
417
ZAR
5,793
08/18/21
(13)
Citigroup
USD
417
ZAR
5,798
08/18/21
(13)
Citigroup
USD
488
ZAR
6,695
08/18/21
(22)
Citigroup
USD
513
ZAR
7,020
08/18/21
(24)
Citigroup
USD
525
ZAR
7,300
08/18/21
(17)
Citigroup
USD
606
ZAR
8,383
08/18/21
(22)
Citigroup
AUD
121
USD
91
08/18/21
—
Citigroup
AUD
9,386
USD
7,287
08/18/21
247
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
100
Strategic
Bond
Fund
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
CAD
1,503
USD
1,197
07/19/21
(15)
Citigroup
CAD
3,580
USD
2,860
07/19/21
(28)
Citigroup
CHF
1,333
EUR
1,224
08/18/21
19
Citigroup
CLP
80,416
USD
110
08/18/21
1
Citigroup
CLP
109,792
USD
151
08/18/21
2
Citigroup
CLP
114,866
USD
158
08/18/21
2
Citigroup
CLP
133,531
USD
184
08/18/21
2
Citigroup
CLP
408,558
USD
563
08/18/21
7
Citigroup
CLP
429,939
USD
593
08/18/21
8
Citigroup
CLP
443,497
USD
612
08/18/21
8
Citigroup
COP
557,446
USD
151
08/18/21
3
Citigroup
COP
1,746,219
USD
473
08/18/21
9
Citigroup
COP
2,077,461
USD
565
08/18/21
13
Citigroup
COP
5,327,124
USD
1,397
08/18/21
(19)
Citigroup
EUR
980
GBP
839
08/18/21
(3)
Citigroup
EUR
88
HUF
31,210
08/18/21
—
Citigroup
EUR
88
HUF
31,126
08/18/21
—
Citigroup
EUR
140
HUF
49,294
08/18/21
—
Citigroup
EUR
173
HUF
60,916
08/18/21
—
Citigroup
EUR
250
HUF
88,906
08/18/21
6
Citigroup
EUR
391
HUF
137,980
08/18/21
3
Citigroup
EUR
584
HUF
206,548
08/18/21
6
Citigroup
EUR
1,000
NOK
10,282
08/18/21
15
Citigroup
EUR
113
USD
138
08/18/21
4
Citigroup
EUR
205
USD
248
08/18/21
5
Citigroup
EUR
2,006
USD
2,400
08/18/21
20
Citigroup
EUR
3,000
USD
3,612
08/18/21
51
Citigroup
EUR
15,200
USD
18,380
08/18/21
339
Citigroup
GBP
843
EUR
980
08/18/21
(6)
Citigroup
GBP
807
USD
1,122
08/18/21
5
Citigroup
GBP
837
USD
1,163
08/18/21
5
Citigroup
GBP
918
USD
1,275
08/18/21
6
Citigroup
HUF
87,546
EUR
250
08/18/21
3
Citigroup
HUF
168,208
EUR
485
08/18/21
17
Citigroup
HUF
172,193
EUR
495
08/18/21
14
Citigroup
JPY
1,743,896
USD
15,975
08/18/21
272
Citigroup
KRW
247,638
USD
219
08/18/21
—
Citigroup
KRW
421,533
USD
373
08/18/21
—
Citigroup
KRW
673,864
USD
597
08/18/21
1
Citigroup
MXN
2,912
USD
145
07/19/21
(1)
Citigroup
MXN
26,384
USD
1,320
08/18/21
4
Citigroup
MXN
36,000
USD
1,790
08/18/21
(5)
Citigroup
MXN
76,509
USD
3,737
08/18/21
(79)
Citigroup
PHP
115,372
USD
2,384
08/18/21
30
Citigroup
SEK
33,800
USD
4,096
09/15/21
144
Citigroup
THB
6,358
USD
198
08/18/21
(1)
Citigroup
THB
16,317
USD
523
08/18/21
14
Citigroup
THB
17,152
USD
534
08/18/21
(1)
Citigroup
THB
18,718
USD
599
08/18/21
15
Citigroup
THB
26,538
USD
850
08/18/21
22
Citigroup
THB
27,397
USD
878
08/18/21
24
Citigroup
THB
29,387
USD
941
08/18/21
24
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
101
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Citigroup
THB
30,836
USD
988
08/18/21
26
Citigroup
THB
31,740
USD
989
08/18/21
(1)
Citigroup
ZAR
1,869
USD
131
08/18/21
1
Citigroup
ZAR
5,626
USD
394
08/18/21
2
Citigroup
ZAR
6,155
USD
431
08/18/21
3
Citigroup
ZAR
7,487
USD
524
08/18/21
2
Citigroup
ZAR
10,343
USD
740
08/18/21
20
Citigroup
ZAR
10,415
USD
722
08/18/21
(3)
Citigroup
ZAR
21,656
USD
1,477
08/18/21
(31)
Commonwealth
Bank
of
Australia
SEK
566
USD
68
09/09/21
2
Commonwealth
Bank
of
Australia
SEK
1,743
USD
205
09/09/21
1
Commonwealth
Bank
of
Australia
SEK
69,777
USD
8,417
09/09/21
259
Goldman
Sachs
USD
219
BRL
1,155
07/19/21
13
Goldman
Sachs
USD
1,077
EUR
902
07/19/21
(7)
Goldman
Sachs
USD
220
RUB
16,415
07/19/21
4
Goldman
Sachs
EUR
8,817
USD
10,522
07/22/21
63
Goldman
Sachs
GBP
12,037
USD
16,768
07/22/21
117
JPMorgan
Chase
USD
370
EUR
303
07/19/21
(10)
JPMorgan
Chase
USD
460
MXN
9,350
07/19/21
8
JPMorgan
Chase
USD
3,771
NOK
31,200
09/15/21
(147)
JPMorgan
Chase
IDR
2,169,764
USD
150
07/19/21
1
JPMorgan
Chase
SEK
33,800
USD
4,094
09/15/21
142
Royal
Bank
of
Canada
USD
157
CAD
195
09/09/21
—
Royal
Bank
of
Canada
USD
25,664
CAD
30,997
09/09/21
(659)
Royal
Bank
of
Canada
USD
53
EUR
44
09/09/21
(1)
Royal
Bank
of
Canada
USD
4,512
EUR
3,784
09/09/21
(18)
Royal
Bank
of
Canada
USD
9,830
EUR
8,042
09/09/21
(281)
Royal
Bank
of
Canada
USD
3,788
NOK
31,200
09/15/21
(164)
Royal
Bank
of
Canada
CAD
20,739
USD
17,165
09/09/21
435
Royal
Bank
of
Canada
SEK
33,800
USD
4,106
09/15/21
154
State
Street
EUR
1,000
USD
1,192
07/22/21
6
UBS
USD
41
CHF
37
09/09/21
(1)
UBS
CHF
629
USD
684
09/09/21
3
UBS
CHF
22,804
USD
25,463
09/09/21
772
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(å)
1,405
Interest
Rate
Swap
Contracts
Amounts
in
thousands
Counterparty
Notional
Amount
Fund
Receives
Fund
Pays
Termination
Date
Premiums
Paid
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
Credit
Suisse
EUR
2,500
Six
Month
EURIBOR
(3)
-0.450%
(
4)
08/18/23
—
—
—
Credit
Suisse
EUR
2,500
0.450%
(4)
Six
Month
EURIBOR
(3)
08/18/23
—
—
—
Credit
Suisse
USD
16,300
Three
Month
LIBOR
(2)
0.297%
(3)
08/18/23
—
20
20
Credit
Suisse
NZD
21,200
NZD-BBR-Telerate
(2)
0.865%
(3)
08/18/23
—
(5)
(5)
Credit
Suisse
ZAR
38,300
Three
Month
JIBAR
(2)
4.515%
(2)
08/18/23
—
17
17
Credit
Suisse
ZAR
50,001
Three
Month
JIBAR
(2)
4.663%
(2)
08/18/23
—
12
12
Credit
Suisse
MXN
4,700
6.375%
(1)
Mexico
Interbank
28
Day
Deposit
Rate
(1)
08/12/26
—
(3)
(3)
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
102
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
$
Credit
Suisse
EUR
900
0.229%
(4)
Six
Month
EURIBOR
(3)
08/18/26
—
—
—
Credit
Suisse
EUR
900
Six
Month
EURIBOR
(3)
-0.229%
(4)
08/18/26
—
—
—
Credit
Suisse
USD
1,200
Three
Month
LIBOR
(2)
0.978%(3)
08/18/26
—
1
1
Credit
Suisse
MXN
10,600
6.839%
(1)
Mexico
Interbank
28
Day
Deposit
Rate
(1)
08/06/31
—
(8)
(8)
Credit
Suisse
MXN
20,200
6.798%
(1)
Mexico
Interbank
28
Day
Deposit
Rate
(1)
08/06/31
—
(19)
(19)
Credit
Suisse
AUD
4,250
Six
Month
BBSW
(3)
1.810%
(3)
08/18/31
—
(63)
(63)
Credit
Suisse
NZD
4,500
1.943%
(3)
NZD-BBR-Telerate
(2)
08/18/31
—
9
9
Credit
Suisse
CAD
5,000
2.020%
(3)
Canadian
Dealer
Offer
Rate
(3)
08/18/31
—
59
59
Credit
Suisse
USD
6,500
Three
Month
LIBOR
(2)
1.469%
(3)
08/18/31
—
(16)
(16)
Credit
Suisse
EUR
6,814
Six
Month
LIBOR
(3)
0.194%
(4)
08/18/31
—
(61)
(61)
Credit
Suisse
USD
9,206
Three
Month
LIBOR
(2)
1.645%
(3)
08/18/31
—
(176)
(176)
Credit
Suisse
EUR
170
Six
Month
LIBOR
(3)
0.432%
(4)
05/12/51
—
2
2
Credit
Suisse
USD
1,100
Three
Month
LIBOR
(2)
2.092%
(3)
08/18/51
—
(90)
(90)
Credit
Suisse
EUR
2,150
Six
Month
EURIBOR
(3)
0.576%
(4)
08/18/51
—
(69)
(69)
Credit
Suisse
EUR
213
Six
Month
EURIBOR
(3)
0.428%
(4)
06/10/71
—
(7)
(7)
Credit
Suisse
EUR
232
Six
Month
EURIBOR
(3)
0.420%
(4)
06/10/71
—
(7)
(7)
Credit
Suisse
EUR
454
Six
Month
EURIBOR
(3)
0.340%
(4)
06/10/71
—
8
8
Total
Open
Interest
Rate
Swap
Contracts
(å)
—
(396)
(396)
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
103
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
Emerging
Markets
Index
Goldman
Sachs
Purchase
USD
20,300
(1.000%)
(2)
06/20/26
566
(42)
524
CDX
NA
Investment
Grade
Index
Bank
of
America
Purchase
USD
102,000
(1.000%)
(2)
06/20/26
(2,374)
(237)
(2,611)
Total
Open
Credit
Indices
Contracts
(å)
(1,808)
(279)
(2,087)
Sovereign
Issues
Reference
Entity
Counterparty
Purchase/Sell
Protection
Implied
Credit
Spread
Notional
Amount
Fund
(Pays)/
Receives
Fixed
Rate
Termination
Date
Premiums
Paid/
(Received)
$
Unrealized
Appreciation
(Depreciation)
$
Fair
Value
$
Mexico
Government
International
Bond
Barclays
Purchase
0.938%
USD
1,974
(1.000%)
(2)
06/20/26
(6)
—
(6)
Mexico
Government
International
Bond
Morgan
Stanley
Purchase
0.938%
USD
2,157
(1.000%)
(2)
06/20/26
17
(23)
(6)
Russian
Foreign
Bond
Morgan
Stanley
Purchase
0.832%
USD
3,147
(1.000%)
(2)
06/20/26
2
(28)
(26)
Total
Open
Sovereign
Issues
Contracts
13
(51)
(38)
Total
Open
Credit
Default
Swap
Contracts
(å)
(1,795)
(330)
(2,125)
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
$
—
$
64,859
$
—
$
—
$
64,859
6.3
Corporate
Bonds
and
Notes
—
209,623
—
—
209,623
20.4
International
Debt
—
154,576
—
—
154,576
15.1
Loan
Agreements
—
4,871
—
—
4,871
0.5
Mortgage-Backed
Securities
—
162,536
—
—
162,536
15.8
Municipal
Bonds
—
537
—
—
537
0.1
Non-US
Bonds
—
75,195
—
—
75,195
7.3
United
States
Government
Treasuries
—
181,027
—
—
181,027
17.6
Common
Stocks
Technology
—
—
—
—
—
—
*
Preferred
Stocks
Financial
Services
238
—
—
—
238
—
*
Short-Term
Investments
—
44,049
—
108,347
152,396
14.9
Total
Investments
238
897,273
—
108,347
1,005,858
98.0
Other
Assets
and
Liabilities,
Net
2.0
100.0
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
104
Strategic
Bond
Fund
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Other
Financial
Instruments
Assets
Futures
Contracts
3,38
5
—
—
—
3,38
5
0.3
Foreign
Currency
Exchange
Contracts
—
4,886
—
—
4,886
0.5
Interest
Rate
Swap
Contracts
—
128
—
—
128
—
*
Credit
Default
Swap
Contracts
—
524
—
—
524
0.1
A
Liabilities
Futures
Contracts
(1,06
3
)
—
—
—
(1,06
3
)
(0.1)
Foreign
Currency
Exchange
Contracts
—
(3,481)
—
—
(3,481)
(0.3)
Interest
Rate
Swap
Contracts
—
(524)
—
—
(524)
(0.1)
Credit
Default
Swap
Contracts
—
(2,649)
—
—
(2,649)
(0.3)
Total
Other
Financial
Instruments
**
$
2,322
$
(1,116)
$
—
$
—
$
1,206
*
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
June
30,
2021,
see
note
2
in
the
Notes
to
Financial
Statements.
Investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
a
fair
value
for
the
period
ended
June
30,
2021,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Country
Exposure
Fair
Value
$
Andorra
...................................................................................
3,744
Argentina
................................................................................
1,078
Australia
.................................................................................
8,604
Belgium
..................................................................................
487
Bermuda
.................................................................................
9,444
Brazil
......................................................................................
2,327
Canada
....................................................................................
15,087
Cayman
Islands
.......................................................................
27,190
Chile
.......................................................................................
3,649
China
......................................................................................
6,891
Colombia
.................................................................................
2,929
Czech
Republic
.......................................................................
1,059
Denmark
.................................................................................
1,890
Egypt
......................................................................................
3,693
Finland
...................................................................................
1,028
Russell
Investment
Funds
Strategic
Bond
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
105
Amounts
in
thousands
Country
Exposure
Fair
Value
$
France
.....................................................................................
7,451
Germany
.................................................................................
8,469
Hong
Kong
..............................................................................
253
India
.......................................................................................
1,580
Indonesia
................................................................................
511
Ireland
....................................................................................
16,896
Israel
.......................................................................................
907
Italy
........................................................................................
6,639
Japan
......................................................................................
19,390
Kazakhstan
.............................................................................
239
Kuwait
....................................................................................
727
Macao
.....................................................................................
1,201
Malaysia
..................................................................................
838
Mexico
....................................................................................
12,074
Morocco
..................................................................................
404
Netherlands
............................................................................
5,272
Oman
......................................................................................
791
Panama
...................................................................................
1,123
Paraguay
.................................................................................
233
Peru
........................................................................................
2,098
Qatar
.......................................................................................
1,101
Romania
..................................................................................
2,241
Russia
.....................................................................................
723
Saudi
Arabia
...........................................................................
1,599
Singapore
................................................................................
202
South
Africa
............................................................................
1,861
South
Korea
............................................................................
806
Spain
.......................................................................................
2,017
Switzerland
.............................................................................
7,799
Thailand
..................................................................................
227
Togo
........................................................................................
1,240
Tunisia
....................................................................................
3,588
United
Arab
Emirates
.............................................................
948
United
Kingdom
......................................................................
31,696
United
States
...........................................................................
772,883
Zambia
....................................................................................
731
Total
Investments
....................................................................
1,005,858
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
106
Strategic
Bond
Fund
Russell
Investment
Funds
Strategic
Bond
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Unrealized
appreciation
on
foreign
currency
exchange
contracts
$
—
$
4,886
$
—
Variation
margin
on
futures
contracts*
—
—
3,385
Interest
rate
swap
contracts,
at
fair
value
—
—
128
Credit
default
swap
contracts,
at
fair
value
524
—
—
Total
$
524
$
4,886
$
3,513
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
—
$
—
$
1,063
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
3,481
—
Interest
rate
swap
contracts,
at
fair
value
—
—
524
Credit
default
swap
contracts,
at
fair
value
2,649
—
—
Total
$
2,649
$
3,481
$
1,587
Derivatives
not
accounted
for
as
hedging
instruments
Credit
Contracts
Foreign
Currency
Contracts
Interest
Rate
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
—
$
—
$
(
11,386
)
Options
written
—
—
211
Interest
rate
swap
contracts
—
—
3,032
Credit
default
swap
contracts
(
583
)
—
—
Foreign
currency
exchange
contracts
—
786
—
Total
$
(
583
)
$
786
$
(
8,143
)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
—
$
—
$
3,343
Options
written
—
—
(
11
)
Interest
rate
swap
contracts
—
—
(
1,632
)
Credit
default
swap
contracts
(
136
)
—
—
Foreign
currency
exchange
contracts
—
2,120
—
Total
$
(
136
)
$
2,120
$
1,700
*
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
Strategic
Bond
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
107
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
$
4,886
$
—
$
4,886
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
128
—
128
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
524
—
524
Total
Financial
and
Derivative
Assets
5,538
—
5,538
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(652)
—
(652)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
4,886
$
—
$
4,886
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
$
1,097
$
—
$
—
$
1,097
Bank
of
Montreal
142
142
—
—
Bank
of
New
York
151
151
—
—
Citigroup
1,517
664
—
853
Commonwealth
Bank
of
Australia
261
—
—
261
Goldman
Sachs
197
7
—
190
JPMorgan
Chase
151
151
—
—
Royal
Bank
of
Canada
589
589
—
—
State
Street
6
—
6
—
UBS
775
1
—
774
Total
$
4,886
$
1,705
$
6
$
3,175
Russell
Investment
Funds
Strategic
Bond
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
108
Strategic
Bond
Fund
Amounts
in
thousands
Offsetting
of
Financial
Liabilities
and
Derivative
Liabilities
Description
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Gross
Amounts
of
Recognized
Liabilities
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Foreign
Currency
Exchange
Contracts
Unrealized
depreciation
on
foreign
currency
exchange
contracts
$
3,481
$
—
$
3,481
Interest
Rate
Swap
Contracts
Interest
rate
swap
contracts,
at
fair
value
524
—
524
Credit
Default
Swap
Contracts
Credit
default
swap
contracts,
at
fair
value
2,649
—
2,649
Total
Financial
and
Derivative
Liabilities
6,654
—
6,654
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
(3,135)
—
(3,135)
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
3,519
$
—
$
3,519
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
Montreal
$
146
$
142
$
—
$
4
Bank
of
New
York
159
151
—
8
Barclays
6
—
6
—
Citigroup
1,888
664
1,040
184
Goldman
Sachs
7
7
—
—
JPMorgan
Chase
157
151
—
6
Morgan
Stanley
32
—
—
32
Royal
Bank
of
Canada
1,123
589
—
534
UBS
1
1
—
—
Total
$
3,519
$
1,705
$
1,046
$
768
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
109
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
993,882
Investments,
at
fair
value(>)
...........................................................................................................................................................
1,005,858
Foreign
currency
holdings(^)
.........................................................................................................................................................
8,403
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
4,886
Receivables:
Dividends
and
interest
.......................................................................................................................................................
5,045
Dividends
from
affiliated
funds
..........................................................................................................................................
4
Investments
sold
................................................................................................................................................................
2,880
Fund
shares
sold
................................................................................................................................................................
14
From
broker(a)(b)(c)
...........................................................................................................................................................
15,459
Variation
margin
on
futures
contracts
.................................................................................................................................
2,331
Prepaid
expenses
...........................................................................................................................................................................
5
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
128
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
524
Total
assets
.................................................................................................................................................
1,045,537
Liabilities
Payables:
Due
to
custodian
................................................................................................................................................................
2,802
Due
to
broker
(d)(e)
............................................................................................................................................................
164
Investments
purchased
......................................................................................................................................................
8,468
Fund
shares
redeemed
.......................................................................................................................................................
434
Accrued
fees
to
affiliates
....................................................................................................................................................
510
Other
accrued
expenses
.....................................................................................................................................................
348
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
3,481
Interest
rate
swap
contracts,
at
fair
value(•)
...................................................................................................................................
524
Credit
default
swap
contracts,
at
fair
value(+)
................................................................................................................................
2,649
Total
liabilities
.............................................................................................................................................
19,380
Net
Assets
............................................................................................................................................................
$
1,026,157
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
110
Strategic
Bond
Fund
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
14,463
Shares
of
beneficial
interest
...........................................................................................................................................................
96
5
Additional
paid-in
capital
..............................................................................................................................................................
1,010,7
29
Net
Assets
............................................................................................................................................................
$
1,026,157
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.64
Net
assets
...............................................................................................................................................................................
$
1,026,156,972
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
96,456,522
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
8,446
(•)
Interest
rate
swap
contracts
-
premiums
paid
(received)
$
—
(+)
Credit
default
swap
contracts
-
premiums
paid
(received)
$
(1,795)
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
$
108,347
(a)
Receivable
from
Broker
for
Futures
$
6,219
(b)
Receivable
from
Broker
for
Swaps
$
6,990
(c)
Receivable
from
Broker
for
Forwards
$
2,250
(d) Due
to
Broker
for
Futures
$
34
(e)
Due
to
Broker
for
Swaps
$
130
(#)
Net
asset
value
per
share
equals
net
assets
divided
by
shares
of
beneficial
interest
outstanding.
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Strategic
Bond
Fund
111
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
from
affiliated
funds
.........................................................................................................................................
$
30
Interest
..............................................................................................................................................................................
9,651
Total
investment
income
...............................................................................................................................................................
9,681
Expenses
Advisory
fees
....................................................................................................................................................................
2,603
Administrative
fees
...........................................................................................................................................................
237
Custodian
fees
...................................................................................................................................................................
121
Transfer
agent
fees
............................................................................................................................................................
21
Professional
fees
...............................................................................................................................................................
88
Trustees’
fees
....................................................................................................................................................................
18
Printing
fees
......................................................................................................................................................................
59
Miscellaneous
...................................................................................................................................................................
12
Total
expenses
...............................................................................................................................................................................
3,159
Net
investment
income
(loss)
........................................................................................................................................................
6,522
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
9,403
Investments
in
affiliated
funds
..........................................................................................................................................
(6)
Futures
contracts
..............................................................................................................................................................
(11,386)
Options
written
.................................................................................................................................................................
211
Foreign
currency
exchange
contracts
................................................................................................................................
786
Interest
rate
swap
contracts
...............................................................................................................................................
3,032
Credit
default
swap
contracts
............................................................................................................................................
(583)
Foreign
currency-related
transactions
...............................................................................................................................
355
Net
realized
gain
(loss)
..................................................................................................................................................................
1,812
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
(23,022)
Investments
in
affiliated
funds
..........................................................................................................................................
6
Futures
contracts
..............................................................................................................................................................
3,343
Options
written
.................................................................................................................................................................
(11)
Foreign
currency
exchange
contracts
................................................................................................................................
2,120
Interest
rate
swap
contracts
...............................................................................................................................................
(1,632)
Credit
default
swap
contracts
............................................................................................................................................
(136)
Foreign
currency-related
transactions
...............................................................................................................................
(299)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
(19,631)
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
(17,819)
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
(11,297)
Russell
Investment
Funds
Strategic
Bond
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
112
Strategic
Bond
Fund
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
6,522
$
16,317
Net
realized
gain
(loss)
......................................................................................................................
1,812
36,454
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
(19,631)
17,695
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
(11,297)
70,466
Distributions
To
shareholders
.................................................................................................................................
(8,022)
(45,663)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(8,022)
(45,663)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
128,307
(25,404)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
108,988
(601)
Net
Assets
Beginning
of
period
.................................................................................................................................
917,169
917,770
End
of
period
..........................................................................................................................................
$
1,026,157
$
917,169
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
12,986
$
136,901
4,785
$
52,480
Proceeds
from
reinvestment
of
distributions
758
8,022
4,221
45,66
3
Payments
for
shares
redeemed
(1,573)
(16,616)
(11,662)
(123,54
7
)
Total
increase
(decrease)
12,171
$
128,307
(2,656)
$
(25,404)
Russell
Investment
Funds
Strategic
Bond
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
114
Strategic
Bond
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2021(1)
10.88
.07
(.22)
(.15)
(.03)
(.06)
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
115
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d
)
(.09)
10.64
(1.34)
1,026,157
.67
.67
1.38
69
(.56)
10.88
8.43
917,169
.69
.69
1.85
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.
116
Strategic
Bond
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021
,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
461,792
Administration
fees
41,981
Transfer
agent
fees
3,695
Trustee
fees
3,022
$
510,490
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
$
83,168
$
654,427
$
629,248
$
(6
)
$
6
$
108,347
$
30
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
999,274,314
$
13,185,262
$
(5,361,799)
$
7,823,463
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
Global
Real
Estate
Securities
Fund
117
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2021
$
1,159
.40
$
1,020
.33
Expenses
Paid
During
Period*
$
4
.82
$
4
.51
*
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
181/365
(to
reflect
the
one-half
year
period).
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
118
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Common
Stocks
-
97.5%
Australia
-
3.9%
BGP
Holdings
PLC(Æ)(Š)
926,311
—
Charter
Hall
Group
-
ADR(ö)
652,418
7,546
Goodman
Group(ö)
126,205
1,994
GPT
Group
(The)(ö)
1,404,214
5,142
Growthpoint
Properties
Australia,
Ltd.(ö)
967,025
2,953
Mirvac
Group(ö)
6,328,280
13,795
Scentre
Group(ö)
1,909,452
3,905
Vicinity
Centres(Æ)(ö)
3,168,493
3,656
Waypoint
REIT,
Ltd.(Æ)(ö)
1,237,255
2,422
41,413
Belgium
-
1.1%
Aedifica(ö)
51,320
6,764
VGP
NV
13,354
2,631
Warehouses
De
Pauw
CVA(ö)
58,592
2,237
11,632
Canada
-
2.0%
Allied
Properties
Real
Estate
Investment
Trust(ö)
58,045
2,109
Canadian
Apartment
Properties(ö)
186,246
8,733
Granite
Real
Estate
Investment
Trust(ö)
48,520
3,228
RioCan
Real
Estate
Investment
Trust(Ñ)(ö)
435,584
7,759
21,829
China
-
0.3%
ESR
Cayman,
Ltd.(Æ)(Þ)
466,800
1,575
GDS
Holdings,
Ltd.
-
ADR(Æ)
19,492
1,530
3,105
France
-
1.7%
ARGAN
SA(ö)
17,521
2,138
Gecina
SA(ö)
45,316
6,944
ICADE(ö)
44,671
3,846
Klepierre
SA
-
GDR(ö)
212,484
5,478
18,406
Germany
-
5.0%
alstria
office
REIT-AG(ö)
362,909
6,710
Deutsche
Wohnen
SE
127,838
7,826
Instone
Real
Estate
Group
AG(Þ)
117,147
3,528
LEG
Immobilien
AG
21,472
3,094
VIB
Vermoegen
AG(Æ)
8,467
359
Vonovia
SE
506,497
32,775
54,292
Hong
Kong
-
5.3%
CK
Asset
Holdings,
Ltd.
2,123,000
14,656
Hang
Lung
Properties,
Ltd.
-
ADR
128,000
311
Hysan
Development
Co.,
Ltd.
710,000
2,830
Link
Real
Estate
Investment
Trust(ö)
1,444,200
13,973
New
World
Development
Co.,
Ltd.
735,000
3,820
Sands
China,
Ltd.(Æ)
599,200
2,524
Sun
Hung
Kai
Properties,
Ltd.
718,500
10,707
SUNeVision
Holdings,
Ltd.
560,000
573
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Swire
Properties,
Ltd.
724,200
2,159
Wharf
Holdings,
Ltd.
(The)
272,000
1,037
Wharf
Real
Estate
Investment
Co.,
Ltd.
746,000
4,338
56,928
Japan
-
10.7%
Activia
Properties,
Inc.(ö)
2,254
10,674
Daibiru
Corp.
310,000
3,910
Global
One
Real
Estate
Investment
Corp.(ö)
3,321
3,747
GLP
J-REIT(Æ)(ö)
3,266
5,635
Hulic
REIT,
Inc.(ö)
3,164
5,328
Invincible
Investment
Corp.(ö)
8,434
3,250
Japan
Prime
Realty
Investment
Corp.(ö)
189
740
Japan
Retail
Fund
Investment
Corp.(ö)
4,924
5,335
Kenedix
Residential
Next
Investment
Corp.(ö)
1,041
2,250
Kenedix
Retail
REIT
Corp.(ö)
1,970
5,328
LaSalle
Logiport
REIT(ö)
1,913
3,236
Mitsubishi
Estate
Co.,
Ltd.
857,200
13,857
Mitsui
Fudosan
Co.,
Ltd.
901,500
20,871
Mitsui
Fudosan
Logistics
Park,
Inc.(ö)
534
2,846
MORI
Trust
Hotel
REIT,
Inc.(ö)
3,916
4,960
MORI
Trust
Sogo
REIT,
Inc.(ö)
2,964
4,196
Nippon
Building
Fund,
Inc.(ö)
747
4,659
Nippon
REIT
Investment
Corp.(ö)
219
900
Orix
JREIT,
Inc.(ö)
1,650
3,175
Tokyu
Fudosan
Holdings
Corp.
1,099,200
6,607
United
Urban
Investment
Corp.(ö)
2,159
3,122
114,626
Netherlands
-
1.2%
CTP
NV(Æ)(Þ)
117,161
2,362
Unibail-Rodamco-Westfield(Æ)(ö)
126,827
10,985
13,347
Singapore
-
2.8%
CapitaLand
Mall
Trust
Class
A(ö)
2,908,128
4,519
CapitaLand,
Ltd.
2,740,700
7,571
City
Developments,
Ltd.
745,500
4,047
Keppel
DC
REIT(Æ)(ö)
817,300
1,515
Keppel
REIT(Æ)(ö)
3,420,600
3,002
Mapletree
Greater
China
Commercial
Trust(Æ)(ö)
1,969,000
1,521
Mapletree
Industrial
Trust(Æ)(ö)
234,000
493
Mapletree
Logistics
Trust(Æ)(ö)
1,694,400
2,587
Parkway
Life
Real
Estate
Investment
Trust(Æ)(ö)
995,555
3,399
Suntec
Real
Estate
Investment
Trust(Æ)
(ö)
1,678,500
1,826
30,480
Spain
-
0.6%
Arima
Real
Estate
Socimi
SA(Æ)(ö)
140,207
1,518
Inmobiliaria
Colonial
Socimi
SA(ö)
330,755
3,338
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
119
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Neinor
Homes
SA(Æ)(Þ)
81,495
1,098
5,954
Sweden
-
2.7%
Castellum
AB
378,050
9,623
Catena
AB
41,220
2,207
Fabege
AB
319,823
5,132
Fastighets
AB
Balder
Class
B(Æ)
156,397
9,815
Wihlborgs
Fastigheter
AB
94,757
2,053
28,830
United
Kingdom
-
5.2%
Assura
PLC(ö)
4,176,617
4,267
Big
Yellow
Group
PLC(ö)
171,111
3,095
British
Land
Co.
PLC
(The)(ö)
1,845,427
12,654
Derwent
London
PLC(ö)
66,187
3,029
Grainger
PLC
943,552
3,722
LondonMetric
Property
PLC(ö)
905,495
2,900
PRS
REIT
PLC
(The)(ö)
832,870
1,175
Safestore
Holdings
PLC(ö)
299,450
3,925
Segro
PLC(ö)
807,996
12,242
Tritax
EuroBox
PLC(Þ)
1,227,120
1,828
UNITE
Group
PLC
(The)(ö)
282,755
4,197
Workspace
Group
PLC(ö)
246,976
2,850
55,884
United
States
–
55.0%
Agree
Realty
Corp.(ö)
117,800
8,304
Alexander
&
Baldwin,
Inc.
21,024
385
Alexandria
Real
Estate
Equities,
Inc.(ö)
12,551
2,283
American
Homes
4
Rent
Class
A(ö)
292,468
11,362
Americold
Realty
Trust(ö)
167,492
6,340
Apartment
Income
REIT
Corp.(ö)
303,250
14,383
Apple
Hospitality
REIT,
Inc.(ö)
339,603
5,182
AvalonBay
Communities,
Inc.(ö)
90,003
18,783
Boston
Properties,
Inc.(ö)
135,215
15,494
Boyd
Gaming
Corp.(Æ)
71,689
4,408
Caesars
Entertainment,
Inc.(Æ)
22,614
2,346
CoreSite
Realty
Corp.
Class
A(ö)
28,537
3,841
Crown
Castle
International
Corp.(ö)
2,478
483
CyrusOne,
Inc.(ö)
149,317
10,679
Digital
Realty
Trust,
Inc.(ö)
51,868
7,804
Duke
Realty
Corp.(ö)
225,805
10,692
EastGroup
Properties,
Inc.(ö)
60,659
9,975
Empire
State
Realty
Trust,
Inc.
Class
A(ö)
544,487
6,534
EPR
Properties(ö)
79,305
4,178
Equinix,
Inc.(Æ)(ö)
19,907
15,977
Equity
Residential(ö)
193,876
14,928
Essential
Properties
Realty
Trust,
Inc.(ö)
328,841
8,892
Essex
Property
Trust,
Inc.(ö)
40,253
12,076
Extra
Space
Storage,
Inc.(ö)
174,650
28,612
Healthcare
Trust
of
America,
Inc.
Class
A(ö)
140,989
3,764
Healthpeak
Properties,
Inc.(ö)
431,539
14,366
Highwoods
Properties,
Inc.(ö)
99,690
4,503
Host
Hotels
&
Resorts,
Inc.(Æ)(ö)
563,399
9,628
Amounts
in
thousands
(except
share
amounts)
Principal
Amount
($)
or
Shares
Fair
Value
$
Howard
Hughes
Corp.
(The)(Æ)
16,319
1,590
Independence
Realty
Trust,
Inc.(ö)
71,675
1,307
Invitation
Homes,
Inc.(ö)
180,248
6,721
Jones
Lang
LaSalle,
Inc.(Æ)
26,145
5,110
Kimco
Realty
Corp.(ö)
766,977
15,991
Life
Storage,
Inc.(Æ)(ö)
113,443
12,178
Medical
Properties
Trust,
Inc.(ö)
539,224
10,838
MGM
Growth
Properties
LLC
Class
A(ö)
87,414
3,201
Mid-America
Apartment
Communities,
Inc.(ö)
80,530
13,563
NetSTREIT
Corp.(ö)
80,112
1,847
Omega
Healthcare
Investors,
Inc.(ö)
19,550
709
Park
Hotels
&
Resorts,
Inc.(Æ)(ö)
329,706
6,795
Prologis,
Inc.(ö)
430,275
51,432
Public
Storage(ö)
76,840
23,106
Retail
Properties
of
America,
Inc.
Class
A(ö)
577,086
6,608
Rexford
Industrial
Realty,
Inc.(ö)
141,387
8,052
Ryman
Hospitality
Properties,
Inc.(Æ)(ö)
57,447
4,536
Sabra
Health
Care
REIT,
Inc.(ö)
21,617
393
Simon
Property
Group,
LP(ö)
277,596
36,222
SL
Green
Realty
Corp.
(Ñ)(ö)
115,968
9,277
STORE
Capital
Corp.(ö)
95,039
3,280
Sun
Communities,
Inc.(ö)
122,844
21,056
UDR,
Inc.(ö)
307,476
15,060
Ventas,
Inc.(ö)
344,829
19,690
VEREIT,
Inc.(ö)
260,469
11,963
VICI
Properties,
Inc.(ö)
441,022
13,681
Weingarten
Realty
Investors(ö)
119,789
3,842
Welltower,
Inc.(ö)
282,843
23,505
Weyerhaeuser
Co.(ö)
73,125
2,517
590,272
Total
Common
Stocks
(cost
$783,093)
1,046,998
Short-Term
Investments
-
1.7%
United
States
-
1.7%
U.S.
Cash
Management
Fund(@)
18,924,721
(∞)
18,921
Total
Short-Term
Investments
(cost
$18,921)
18,921
Other
Securities
-
0.2%
U.S.
Cash
Collateral
Fund(@)(×)
1,773,025
(∞)
1,773
Total
Other
Securities
(cost
$1,773)
1,773
Total
Investments
-
99.4%
(identified
cost
$803,787)
1,067,692
Other
Assets
and
Liabilities,
Net
-
0.6%
6,334
Net
Assets
-
100.0%
1,074,026
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
120
Global
Real
Estate
Securities
Fund
Restricted
Securities
Amounts
in
thousands
(except
share
and
cost
per
unit
amounts)
%
of
Net
Assets
Acquisition
Principal
Amount
($)
Cost
per
Unit
Cost
(000)
Fair
Value
(000)
Securities
Date
or
shares
$
$
$
1.0%
CTP
NV
04/06/21
EUR
117,161
18.83
2,207
2,362
ESR
Cayman,
Ltd.
11/20/19
HKD
466,800
2.16
1,010
1,575
Instone
Real
Estate
Group
AG
03/28/19
EUR
117,147
23.35
2,736
3,528
Neinor
Homes
SA
05/31/21
EUR
81,495
13.41
1,093
1,098
Tritax
EuroBox
PLC
07/04/18
GBP
1,227,120
1.29
1,730
1,828
10,391
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
315
USD
12,502
09/21
(314)
FTSE/EPRA
Europe
Index
Futures
159
EUR
3,667
09/21
(175)
Hang
Seng
Index
Futures
7
HKD
10,021
07/21
(14)
MSCI
Singapore
Index
Futures
33
SGD
1,173
07/21
3
S&P/TSX
60
Index
Futures
3
CAD
722
09/21
4
SPI
200
Index
Futures
5
AUD
903
09/21
(6)
TOPIX
Index
Futures
14
JPY
272,019
09/21
(22)
Total
Value
and
Unrealized
Appreciation
(Depreciation)
on
Open
Futures
Contracts
(å)
(524)
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
Bank
of
America
AUD
453
USD
340
09/15/21
1
Bank
of
America
EUR
50
USD
60
07/01/21
—
Bank
of
America
EUR
80
USD
94
07/02/21
—
Bank
of
America
EUR
211
USD
256
09/15/21
5
Bank
of
America
EUR
330
USD
393
09/15/21
2
Bank
of
America
EUR
806
USD
961
09/15/21
4
Bank
of
America
HKD
1,716
USD
221
07/02/21
—
Bank
of
America
HKD
2,948
USD
380
09/15/21
—
Bank
of
America
HKD
4,142
USD
534
09/15/21
—
Bank
of
America
JPY
65,696
USD
594
07/01/21
2
Bank
of
America
JPY
35,862
USD
325
09/15/21
2
Bank
of
America
JPY
82,848
USD
750
09/15/21
4
Bank
of
America
SGD
419
USD
311
07/01/21
—
Bank
of
America
SGD
291
USD
216
09/15/21
—
Bank
of
New
York
USD
350
AUD
451
09/15/21
(12)
Bank
of
New
York
USD
240
CAD
290
09/15/21
(6)
Bank
of
New
York
USD
1,593
EUR
1,302
09/15/21
(46)
Bank
of
New
York
USD
559
HKD
4,335
09/15/21
—
Bank
of
New
York
USD
944
JPY
103,076
09/15/21
(16)
Bank
of
New
York
USD
299
SGD
395
09/15/21
(5)
JPMorgan
Chase
USD
349
AUD
451
09/15/21
(10)
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
121
Foreign
Currency
Exchange
Contracts
Amounts
in
thousands
Counterparty
Amount
Sold
Amount
Bought
Settlement
Date
Unrealized
Appreciation
(Depreciation)
$
JPMorgan
Chase
USD
240
CAD
290
09/15/21
(6)
JPMorgan
Chase
USD
1,589
EUR
1,302
09/15/21
(44)
JPMorgan
Chase
USD
559
HKD
4,335
09/15/21
—
JPMorgan
Chase
USD
941
JPY
103,076
09/15/21
(13)
JPMorgan
Chase
USD
298
SGD
395
09/15/21
(4)
Royal
Bank
of
Canada
USD
350
AUD
451
09/15/21
(12)
Royal
Bank
of
Canada
USD
240
CAD
290
09/15/21
(6)
Royal
Bank
of
Canada
USD
1,382
EUR
1,138
09/15/21
(30)
Royal
Bank
of
Canada
USD
1,593
EUR
1,302
09/15/21
(49)
Royal
Bank
of
Canada
USD
553
HKD
4,291
09/15/21
—
Royal
Bank
of
Canada
USD
559
HKD
4,335
09/15/21
—
Royal
Bank
of
Canada
USD
750
JPY
82,462
09/15/21
(7)
Royal
Bank
of
Canada
USD
944
JPY
103,076
09/15/21
(16)
Royal
Bank
of
Canada
USD
222
SGD
295
09/15/21
(3)
Royal
Bank
of
Canada
USD
299
SGD
395
09/15/21
(5)
Total
Unrealized
Appreciation
(Depreciation)
on
Open
Foreign
Currency
Exchange
Contracts
(270)
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
$
—
$
41,413
$
—
$
—
$
41,413
3
.9
Belgium
—
11,632
—
—
11,632
1
.1
Canada
21,829
—
—
—
21,829
2
.0
China
1,530
1,575
—
—
3,105
0
.3
France
—
18,406
—
—
18,406
1
.7
Germany
—
54,292
—
—
54,292
5
.0
Hong
Kong
—
56,928
—
—
56,928
5
.3
Japan
—
114,626
—
—
114,626
10
.7
Netherlands
—
13,347
—
—
13,347
1
.2
Singapore
—
30,480
—
—
30,480
2
.8
Spain
—
5,954
—
—
5,954
0
.6
Sweden
—
28,830
—
—
28,830
2
.7
United
Kingdom
—
55,884
—
—
55,884
5
.2
United
States
590,272
—
—
—
590,272
55
.0
Short-Term
Investments
—
—
—
18,921
18,921
1
.7
Other
Securities
—
—
—
1,773
1,773
0
.2
Total
Investments
613,631
433,367
—
20,694
1,067,692
99
.4
Other
Assets
and
Liabilities,
Net
0
.6
100
.0
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Schedule
of
Investments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
122
Global
Real
Estate
Securities
Fund
Presentation
of
Portfolio
Holdings
Amounts
in
thousands
Fair
Value
Portfolio
Summary
Level
1
Level
2
Level
3
Practical
Expedient
(a)
Total
%
of
Net
Assets
Other
Financial
Instruments
Assets
Futures
Contracts
7
—
—
—
7
—
*
Foreign
Currency
Exchange
Contracts
2
18
—
—
20
—
*
A
Liabilities
Futures
Contracts
(531
)
—
—
—
(531
)
(—)
*
Foreign
Currency
Exchange
Contracts
—
(290
)
—
—
(290
)
(—)
*
Total
Other
Financial
Instruments
**
$
(522
)
$
(272
)
$
—
$
—
$
(794
)
*
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
June
30,
2021,
see
note
2
in
the
Notes
to
Financial
Statements.
Investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
a
fair
value
for
the
period
ended
June
30,
2021,
were
less
than
1%
of
net
assets.
Amounts
in
thousands
Property
Sector
Exposure
Fair
Value
$
Diversified
..............................................................................
265,029
Healthcare
..............................................................................
80,931
Industrial
................................................................................
123,611
Internet
Services
&
Infrastructure
...........................................
41,920
Lodging/Resorts
......................................................................
57,988
Office
......................................................................................
77,442
Residential
..............................................................................
191,036
Retail
......................................................................................
138,128
Self
Storage
.............................................................................
70,913
Short-Term
Investments
..........................................................
18,921
Other
Securities
......................................................................
1,773
Total
Investments
....................................................................
1,067,692
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
123
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
$
—
$
20
Variation
margin
on
futures
contracts*
7
—
Total
$
7
$
2
0
Location:
Statement
of
Assets
and
Liabilities
-
Liabilities
Variation
margin
on
futures
contracts*
$
531
$
—
Unrealized
depreciation
on
foreign
currency
exchange
contracts
—
290
Total
$
531
$
290
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
4,979
$
—
Foreign
currency
exchange
contracts
—
(121)
Total
$
4,979
$
(121)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(1,169)
$
—
Foreign
currency
exchange
contracts
—
(362)
Total
$
(1,169)
$
(362)
*
Includes
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities.
For
further
disclosure
on
derivatives
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
124
Global
Real
Estate
Securities
Fund
Amounts
in
thousands
Offsetting
of
Financial
Assets
and
Derivative
Assets
Description
Location:
Statement
of
Assets
and
Liabilities
-
Assets
Gross
Amounts
of
Recognized
Assets
Gross
Amounts
Offset
in
the
Statement
of
Assets
and
Liabilities
Net
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Securities
on
Loan*
Investments,
at
fair
value
$
1,715
$
—
$
1,715
Foreign
Currency
Exchange
Contracts
Unrealized
appreciation
on
foreign
currency
exchange
contracts
20
—
20
Total
Financial
and
Derivative
Assets
1,735
—
1,735
Financial
and
Derivative
Assets
not
subject
to
a
netting
agreement
(2)
—
(2)
Total
Financial
and
Derivative
Assets
subject
to
a
netting
agreement
$
1,733
$
—
$
1,733
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
$
18
$
—
$
—
$
18
Barclays
427
—
427
—
HSBC
1,288
—
1,288
—
Total
$
1,733
$
—
$
1,715
$
18
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
Balance
Sheet
Offsetting
of
Financial
and
Derivative
Instruments,
continued
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Global
Real
Estate
Securities
Fund
125
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
$
290
$
—
$
290
Total
Financial
and
Derivative
Liabilities
290
—
290
Financial
and
Derivative
Liabilities
not
subject
to
a
netting
agreement
—
—
—
Total
Financial
and
Derivative
Liabilities
subject
to
a
netting
agreement
$
290
$
—
$
290
Financial
Liabilities,
Derivative
Liabilities,
and
Collateral
Pledged
by
Counterparty
Gross
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Counterparty
Net
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
and
Derivative
Instruments
Collateral
Pledged^
Net
Amount
Bank
of
New
York
$
86
$
—
$
—
$
86
JPMorgan
Chase
77
—
—
77
Royal
Bank
of
Canada
127
—
—
127
Total
$
290
$
—
$
—
$
290
*
Fair
value
of
securities
on
loan
as
reported
in
the
footnotes
to
the
Statement
of
Assets
and
Liabilities.
^ Collateral
received
or
pledged
amounts
may
not
reconcile
to
those
disclosed
in
the
Statement
of
Assets
and
Liabilities
due
to
the
inclusion
of
off-Balance
Sheet
collateral
and
adjustments
made
to
exclude
overcollateralization.
For
further
disclosure
on
derivatives
and
counterparty
risk
see
note
2
in
the
Notes
to
Financial
Statements.
Russell
Investment
Funds
Global
Real
Estate
Securities
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
126
Global
Real
Estate
Securities
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
803,787
Investments,
at
fair
value(*)(>)
......................................................................................................................................................
1,067,692
Foreign
currency
holdings(^)
.........................................................................................................................................................
3,450
Unrealized
appreciation
on
foreign
currency
exchange
contracts
...................................................................................................
20
Receivables:
Dividends
and
interest
.......................................................................................................................................................
3,030
Dividends
from
affiliated
funds
..........................................................................................................................................
1
Investments
sold
................................................................................................................................................................
1,429
Fund
shares
sold
................................................................................................................................................................
63
Foreign
capital
gains
taxes
recoverable
.............................................................................................................................
215
From
broker(a)
...................................................................................................................................................................
2,056
Prepaid
expenses
...........................................................................................................................................................................
5
Total
assets
.................................................................................................................................................
1,077,961
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
152
Fund
shares
redeemed
.......................................................................................................................................................
194
Accrued
fees
to
affiliates
....................................................................................................................................................
770
Other
accrued
expenses
.....................................................................................................................................................
234
Variation
margin
on
futures
contracts
.................................................................................................................................
522
Unrealized
depreciation
on
foreign
currency
exchange
contracts
...................................................................................................
290
Payable
upon
return
of
securities
loaned
.......................................................................................................................................
1,773
Total
liabilities
.............................................................................................................................................
3,935
Net
Assets
............................................................................................................................................................
$
1,074,026
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
127
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
197,876
Shares
of
beneficial
interest
...........................................................................................................................................................
658
Additional
paid-in
capital
..............................................................................................................................................................
875,492
Net
Assets
............................................................................................................................................................
$
1,074,026
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
16.32
Net
assets
...............................................................................................................................................................................
$
1,074,025,834
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
65,797,408
Amounts
in
thousands
(^)
Foreign
currency
holdings
-
cost
$
3,465
(*)
Securities
on
loan
included
in
investments
$
1,715
(>)
Investments
in
affiliates,
U.S.
Cash
Management
Fund
and
U.S.
Cash
Collateral
Fund
$
20,694
(a)
Receivable
from
Broker
for
Futures
$
2,056
(#)
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.
128
Global
Real
Estate
Securities
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Dividends
..........................................................................................................................................................................
$
13,
516
Dividends
from
affiliated
funds
.........................................................................................................................................
7
Securities
lending
income
(net)
.........................................................................................................................................
22
Less
foreign
taxes
withheld
...............................................................................................................................................
(
619
)
Total
investment
income
...............................................................................................................................................................
12,926
Expenses
Advisory
fees
....................................................................................................................................................................
3,983
Administrative
fees
...........................................................................................................................................................
249
Custodian
fees
...................................................................................................................................................................
84
Transfer
agent
fees
............................................................................................................................................................
22
Professional
fees
...............................................................................................................................................................
73
Trustees’
fees
....................................................................................................................................................................
17
Printing
fees
......................................................................................................................................................................
58
Miscellaneous
...................................................................................................................................................................
14
Total
expenses
...............................................................................................................................................................................
4,500
Net
investment
income
(loss)
........................................................................................................................................................
8,426
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
44,820
Investments
in
affiliated
funds
..........................................................................................................................................
(1)
Futures
contracts
..............................................................................................................................................................
4,979
Foreign
currency
exchange
contracts
................................................................................................................................
(121)
Net
realized
gain
(loss)
..................................................................................................................................................................
49,677
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
(net
of
deferred
tax
liability
for
foreign
capital
gains
taxes)
...........................................................................
92,729
Investments
in
affiliated
funds
..........................................................................................................................................
1
Futures
contracts
..............................................................................................................................................................
(1,169)
Foreign
currency
exchange
contracts
................................................................................................................................
(362)
Foreign
currency-related
transactions
...............................................................................................................................
(94)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
91,105
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
140,782
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
149,208
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
129
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
8,426
$
16,391
Net
realized
gain
(loss)
......................................................................................................................
49,677
(62,984)
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
91,105
5,324
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
149,208
(41,269)
Distributions
To
shareholders
.................................................................................................................................
(19,777)
(12,976)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(19,777)
(12,976)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
11,954
35,599
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
141,385
(18,646)
Net
Assets
Beginning
of
period
.................................................................................................................................
932,641
951,287
End
of
period
..........................................................................................................................................
$
1,074,026
$
932,641
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
1,743
$
26,706
4,515
$
54,861
Proceeds
from
reinvestment
of
distributions
1,353
19,
777
1,029
12,
976
Payments
for
shares
redeemed
(2,210)
(34,
529
)
(2,411)
(32,
238
)
Total
increase
(decrease)
886
$
11,954
3,133
$
35,599
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.
130
Global
Real
Estate
Securities
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
$
Return
of
Capital
June
30,
2021(1)
14.37
.13
2.12
2.25
(.30)
—
—
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
131
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(d)(f)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(e)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(e)
%
Portfolio
Turnover
Rate
(d)
(.30)
16.32
15.94
1,074,026
.90
.90
1.69
32
(.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.
132
Global
Real
Estate
Securities
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
720,494
Administration
fees
45,031
Transfer
agent
fees
3,964
Trustee
fees
309
$
769,798
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
$
27,522
$
91,020
$
99,621
$
(1
)
$
1
$
18,921
$
7
$
—
U.S.
Cash
Collateral
Fund
—
61,396
59,623
—
—
1,773
1
—
$
27,522
$
152,416
$
159,244
$
(1
)
$
1
$
20,694
$
8
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
861,994,220
$
207,376,267
$
(2,471,731)
$
204,904,536
Russell
Investment
Funds
Notes
to
Schedules
of
Investments
—
June
30,
2021
(Unaudited)
Notes
to
Schedules
of
Investments
133
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
Note
2.
(∞)
Unrounded
units.
(v)
Loan
agreement
still
pending.
Rate
not
available
at
period
end.
(
Û
)
All
or
a
portion
of
the
shares
of
this
security
are
pledged
as
collateral
in
connection
with
securities
sold
short
.
(
Ð
)
All
or
a
portion
of
the
shares
of
this
security
are
on
loan
through
the
reciprocal
lending
program
with
State
Street.
See
note
2
in
the
Notes
to
the
Financial
Statements
.
(Œ)
Unfunded
loan
agreement.
(1)
Weekly
payment
frequency.
(2)
Quarterly
payment
frequency.
(3)
Semi-annual
payment
frequency.
(4)
Annual
payment
frequency.
(5)
Payment
at
termination.
ADR
-
American
Depositary
Receipt
ADS
-
American
Depositary
Share
BBR
-
Bank
Bill
Rate
BBSW
-
Bank
Bill
Swap
Reference
Rate
BUBOR
-
Budapest
Interbank
Offered
Rate
CIBOR
-
Copenhagen
Interbank
Offered
Rate
CME
-
Chicago
Mercantile
Exchange
CMO
-
Collateralized
Mortgage
Obligation
CVO
-
Contingent
Value
Obligation
EMU
-
European
Economic
and
Monetary
Union
EURIBOR
-
Euro
Interbank
Offered
Rate
FDIC
-
Federal
Deposit
Insurance
Company
GDR
-
Global
Depositary
Receipt
GDS
-
Global
Depositary
Share
GSCI
-
Goldman
Sachs
Commodity
Index
Russell
Investment
Funds
Notes
to
Schedules
of
Investments,
continued
—
June
30,
2021
(Unaudited)
134
Notes
to
Schedules
of
Investments
Foreign
Currency
Abbreviations:
HIBOR
-
Hong
Kong
Interbank
Offer
Rate
JIBAR
-
Johannesburg
Interbank
Agreed
Rate
KSDA
-
Korean
Securities
Dealers
Association
LIBOR
-
London
Interbank
Offered
Rate
MIBOR
-
Mumbai
Interbank
Offered
Rate
NIBOR
-
Norwegian
Interbank
Offered
Rate
PIK
-
Payment
in
Kind
PRIBOR
-
Prague
Interbank
Offered
Rate
REMIC
-
Real
Estate
Mortgage
Investment
Conduit
STIBOR
-
Stockholm
Interbank
Offered
Rate
STRIP
-
Separate
Trading
of
Registered
Interest
and
Principal
of
Securities
SFE
-
Sydney
Futures
Exchange
TBA
-
To
Be
Announced
Security
UK
-
United
Kingdom
WTI
-
West
Texas
Intermediate
ARS
-
Argentine
peso
HKD
-
Hong
Kong
dollar
PKR
-
Pakistani
rupee
AUD
-
Australian
dollar
HUF
-
Hungarian
forint
PLN
-
Polish
zloty
BRL
-
Brazilian
real
IDR
-
Indonesian
rupiah
RON
-
Romanian
New
Leu
CAD
-
Canadian
dollar
ILS
-
Israeli
shekel
RUB
-
Russian
ruble
CHF
-
Swiss
franc
INR
-
Indian
rupee
SEK
-
Swedish
krona
CLP
-
Chilean
peso
ISK
-
Icelandic
krona
SGD
-
Singapore
dollar
CNH
-
Chinese
offshore
spot
ITL
-
Italian
lira
SKK
-
Slovakian
koruna
CNY
-
Chinese
renminbi
yuan
JPY
-
Japanese
yen
THB
-
Thai
baht
COP
-
Colombian
peso
KES
-
Kenyan
schilling
TRY
-
Turkish
lira
CRC
-
Costa
Rican
colon
KRW
-
South
Korean
won
TWD
-
Taiwanese
dollar
CZK
-
Czech
koruna
MXN
-
Mexican
peso
USD
-
United
States
dollar
DKK
-
Danish
krone
MYR
-
Malaysian
ringgit
UYU
-
Uruguayan
peso
DOP
-
Dominican
peso
NOK
-
Norwegian
krone
VEB
-
Venezuelan
bolivar
EGP
-
Egyptian
pound
NGN
-
Nigerian
naira
VND
-
Vietnamese
dong
EUR
-
Euro
NZD
-
New
Zealand
dollar
ZAR
-
South
African
rand
GBP
-
British
pound
sterling
PEN
-
Peruvian
nuevo
sol
GHS
-
Ghanaian
Cedi
PHP
-
Philippine
peso
Russell
Investment
Funds
Notes
to
Financial
Highlights
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Highlights
135
(1)
For
the
period
ended
June
30,
2021
(Unaudited).
(a)
Average
daily
shares
outstanding
were
used
for
this
calculation.
(b)
May
reflect
amounts
waived
and/or
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(c)
Less
than
$.01
per
share.
(d)
Periods
less
than
one
year
are
not
annualized.
(e)
Periods
less
than
one
year
are
annualized.
(f)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
(g)
Gross
and
Net
Expense
Ratios
for
the
period
ended
December
31,
2016
include
a
reimbursement
from
State
Street
for
the
overbilling
of
custody
expenses
in
prior
years.
Without
the
reimbursement,
the
expense
ratios
would
have
been
higher
by
the
amount
listed
below.
Fund
Impact
of
the
fee
reimbursement
on
gross
and
net
expense
ratios
U.S.
Strategic
Equity
Fund
0.01%
U.S.
Small
Cap
Equity
Fund
0.01%
International
Developed
Markets
Fund
0.05%
Russell
Investment
Funds
Notes
to
Financial
Statements
—
June
30,
2021
(Unaudited)
136
Notes
to
Financial
Statements
1.
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.
Unless
otherwise
specified,
“period”
(as
used
within
the
financial
statements)
refers
to
the
six
months
ended
June
30,
2021.
2.
Significant
Accounting
Policies
The
Funds’
financial
statements
are
prepared
in
accordance
with
U.S.
generally
accepted
accounting
principles
(“U.S.
GAAP”)
which
require
the
use
of
management
estimates
and
assumptions
at
the
date
of
the
financial
statements.
Actual
results
could
differ
from
those
estimates.
The
Funds
are
considered
investment
companies
under
U.S.
GAAP
and
follow
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
The
following
is
a
summary
of
the
significant
accounting
policies
consistently
followed
by
each
Fund
in
the
preparation
of
its
financial
statements.
In
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
137
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
securities.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
level
in
the
fair
value
hierarchy
within
which
the
fair
value
measurement
falls
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety.
The
valuation
techniques
and
significant
inputs
used
in
determining
the
fair
market
values
of
financial
instruments
categorized
as
Level
1
and
Level
2
of
the
fair
value
hierarchy
are
as
follows:
Equity
securities,
including
common
and
preferred
stock,
short
securities,
ETFs
and
restricted
securities
that
are
traded
on
a
national
securities
exchange
(or
reported
on
the
NASDAQ
national
market),
are
stated
at
the
last
reported
sales
price
on
the
day
of
valuation
or
official
closing
price,
as
applicable.
To
the
extent
these
securities
are
actively
traded,
and
valuation
adjustments
are
not
applied,
they
are
categorized
as
Level
1
of
the
fair
value
hierarchy.
Preferred
stock
and
other
equities
traded
on
inactive
markets
or
valued
by
reference
to
similar
instruments
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Certain
foreign
equity
securities
may
be
fair
valued
using
a
pricing
service
that
considers
the
correlation
of
the
trading
patterns
of
the
foreign
security
to
the
intraday
trading
in
the
U.S.
markets
for
investments
such
as
American
Depositary
Receipts,
financial
futures,
exchange-traded
funds,
and
the
movement
of
certain
indexes
of
securities,
based
on
the
statistical
analysis
of
historical
relationships.
Foreign
equity
securities
prices
as
described
above
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Fixed
income
securities
including
corporate,
convertible,
U.S.
government
agency,
municipal
bonds
and
notes,
U.S.
treasury
obligations,
sovereign
issues,
bank
loans,
bank
notes
and
non-U.S.
bonds
are
normally
valued
by
pricing
service
providers
that
use
broker
dealer
quotations
or
valuation
estimates
from
their
internal
pricing
models.
The
pricing
service
providers’
internal
models
use
inputs
that
are
observable
such
as
issuer
details,
interest
rates,
yield
curves,
prepayment
speeds,
credit
risks/spreads
and
default
rates.
Such
fixed
income
securities
that
use
pricing
service
internal
models
as
described
above
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Such
fixed
income
securities
that
use
broker
dealer
quotations
are
categorized
as
Level
3
of
the
fair
value
hierarchy.
Fixed
income
securities
purchased
on
a
delayed-delivery
basis
and
marked-to-market
daily
until
settlement
at
the
forward
settlement
date
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Mortgage
and
asset-backed
securities
are
usually
issued
as
separate
tranches,
or
classes,
of
securities
within
each
deal.
These
securities
are
also
normally
valued
by
pricing
service
providers
that
use
broker
dealer
quotations
or
valuation
estimates
from
their
internal
pricing
models.
The
pricing
models
for
these
securities
usually
consider
tranche-level
attributes,
including
estimated
cash
flows
of
each
tranche,
market-based
yield
spreads
for
each
tranche,
and
current
market
data,
as
well
as
incorporate
deal
collateral
performance,
as
available.
Mortgage
and
asset-backed
securities
that
use
these
and
similar
valuation
techniques
and
inputs
as
described
above
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Investments
in
investment
funds
that
are
not
traded
on
a
national
securities
exchange
will
be
valued
based
upon
the
NAV
of
such
investments.
The
Funds
have
adopted
the
authoritative
guidance
under
U.S.
GAAP
for
estimating
the
fair
value
of
investments
in
funds
that
have
calculated
NAV
per
share
in
accordance
with
the
specialized
accounting
guidance
for
investment
companies.
Accordingly,
the
Funds
estimate
the
fair
value
of
an
investment
in
a
fund
using
the
NAV
per
share
without
further
adjustment
as
a
practical
expedient,
if
the
NAV
per
share
of
the
investment
is
determined
in
accordance
with
the
specialized
accounting
guidance
for
investment
companies
as
of
the
reporting
entity’s
measurement
date.
Short-term
investments
having
a
maturity
of
60
days
or
less
are
generally
valued
at
amortized
cost,
which
approximates
fair
market
value.
These
investments
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Derivative
instruments
are
instruments
such
as
foreign
currency
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
138
Notes
to
Financial
Statements
are
categorized
as
Level
1
of
the
fair
value
hierarchy.
OTC
derivatives
that
use
broker
dealer
quotations
are
categorized
as
level
3
of
the
fair
value
hierarchy.
Exchange-traded
derivatives
are
valued
based
on
the
last
reported
sales
price
on
the
day
of
valuation
and
are
categorized
as
Level
1
of
the
fair
value
hierarchy.
Centrally
cleared
swaps
listed
or
traded
on
a
multilateral
or
trade
facility
platform,
such
as
a
registered
exchange,
are
valued
at
the
daily
settlement
price
determined
by
the
respective
exchange.
For
centrally
cleared
credit
default
swaps,
the
clearing
facility
requires
its
members
to
provide
actionable
levels
across
complete
term
structures.
These
levels
along
with
external
third-
party
prices
are
used
to
produce
daily
settlement
prices.
These
securities
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Centrally
cleared
interest
rate
swaps
are
valued
using
a
pricing
model
that
references
the
underlying
rates
including
the
Overnight
Index
Swap
("OIS")
rate
and
London
Interbank
Offered
Rate
(“LIBOR”)
forward
rate
to
produce
the
daily
settlement
price.
These
securities
are
categorized
as
Level
2
of
the
fair
value
hierarchy.
Events
or
circumstances
affecting
the
values
of
Fund
securities
that
occur
between
the
closing
of
the
principal
markets
on
which
they
trade
and
the
time
the
NAV
of
Fund
shares
is
determined
may
be
reflected
in
the
calculation
of
NAV
for
each
applicable
Fund
when
the
Fund
deems
that
the
particular
event
or
circumstance
would
materially
affect
such
Fund’s
NAV.
Funds
that
invest
primarily
in
frequently
traded
exchange-listed
securities
will
use
fair
value
pricing
in
limited
circumstances
since
reliable
market
quotations
will
often
be
readily
available.
Funds
that
invest
in
foreign
securities
use
fair
value
pricing
daily
as
events
may
occur
between
the
close
of
foreign
markets
and
the
time
of
pricing.
Although
there
are
observable
inputs
assigned
on
a
security
level,
prices
are
derived
from
factors
using
proprietary
models
or
matrix
pricing.
For
this
reason,
fair
value
factors
will
cause
movement
between
Levels
1
and
2.
Examples
of
significant
events
that
generally
trigger
fair
value
pricing
of
one
or
more
securities
are:
any
market
movement
of
the
U.S.
securities
market
(defined
in
the
fair
value
procedures
as
the
movement
of
a
single
major
U.S.
Index);
a
company
development
such
as
a
material
business
development;
a
natural
disaster,
a
public
health
emergency
affecting
one
or
more
countries
in
the
global
economy
(including
an
emergency
which
results
in
the
closure
of
financial
markets)
or
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.
The
U.S.
Strategic
Equity,
U.S.
Small
Cap
Equity,
Strategic
Bond
and
Global
Real
Estate
Securities
Funds
had
no
transfers
into
or
out
of
Level
3
for
the
period
ended
June
30,
2021.
The
International
Developed
Markets
Fund
had
transfers
out
of
Level
3
into
Level
1
representing
financial
instruments
for
which
quoted
prices
in
an
active
market
became
available.
The
amount
transferred
was
$22,520.
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
period.
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
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
139
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
period,
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
—
June
30,
2021
(Unaudited)
140
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
June
30,
2021,
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,
2018
through
December
31,
2020,
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
period.
Such
fluctuations
are
included
with
Declared
Payable
Funds
Quarterly
April,
July,
October
and
mid-December
U.S.
Strategic
Equity,
U.S.
Small
Cap
Equity,
Strategic
Bond
and
Global
Real
Estate
Securities
Funds
Annually
Mid-December
International
Developed
Markets
Fund
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
141
the
net
realized
and
unrealized
gain
or
loss
from
investments.
However,
for
federal
income
tax
purposes,
the
Funds
do
isolate
the
effects
of
changes
in
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
market
prices
for
realized
gain
(or
loss)
on
debt
obligations.
Capital
Gains
Taxes
The
Funds
may
be
subject
to
capital
gains
taxes
and
repatriation
taxes
imposed
by
certain
countries
in
which
they
invest.
The
International
Developed
Markets,
Strategic
Bond
and
Global
Real
Estate
Securities
Funds
may
record
a
deferred
capital
gains
tax
liability
with
respect
to
the
unrealized
appreciation
on
foreign
securities
for
potential
capital
gains
and
repatriation
taxes
at
June
30,
2021.
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
$0
as
of
June
30,
2021.
The
Strategic
Bond
Fund
has
$17,066
included
in
net
realized
gain
(loss)
on
investments
in
the
Statements
of
Operations
related
to
capital
gains
taxes
for
the
period
ended
June
30,
2021.
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
currency
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
Statements
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
—
June
30,
2021
(Unaudited)
142
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
June
30,
2021,
if
applicable,
are
disclosed
in
the
Fair
Value
of
Derivative
Instruments
table
following
each
applicable
Fund’s
Schedule
of
Investments.
Foreign
Currency
Exchange
Contracts
Certain
Funds
may
enter
into
foreign
currency
exchange
spot
contracts
and
forward
foreign
currency
exchange
contracts
("FX
contracts").
From
time
to
time,
certain
Funds
may
enter
into
FX
contracts
to
hedge
certain
foreign
currency-denominated
assets.
FX
contracts
are
recorded
at
fair
value.
Certain
risks
may
arise
upon
entering
into
these
FX
contracts
from
the
potential
inability
of
counterparties
to
meet
the
terms
of
their
FX
contracts
and
are
generally
limited
to
the
amount
of
unrealized
gain
on
the
FX
contracts,
if
any,
that
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
For
the
period
ended
June
30,
2021,
the
following
Funds
entered
into
FX
contracts
primarily
for
the
strategies
listed
below:
The
Funds’
FX
contract
notional
dollar
values
outstanding
fluctuate
throughout
the
period
as
required
to
meet
strategic
objectives.
The
following
tables
illustrate
the
quarterly
volume
of
FX
contracts.
For
the
purpose
of
this
disclosure,
volume
is
measured
by
the
amounts
bought
and
sold
in
USD.
Options
Certain
Funds
may
purchase
and
sell
(write)
call
and
put
options
on
securities
and
securities
indices.
Such
options
are
traded
on
a
national
securities
exchange
or
in
an
OTC
market.
The
Funds
may
also
purchase
and
sell
(write)
call
and
put
options
on
foreign
currencies.
When
a
Fund
writes
a
covered
call
or
a
put
option,
an
amount
equal
to
the
premium
received
by
the
Fund
is
included
in
the
Fund’s
Statement
of
Assets
and
Liabilities
as
an
asset
and
as
an
equivalent
liability.
The
amount
of
the
liability
is
subsequently
marked-
to-market
to
reflect
the
current
fair
value
of
the
option
written.
The
Fund
receives
a
premium
on
the
sale
of
a
call
option
but
gives
up
the
opportunity
to
profit
from
any
increase
in
the
value
of
the
underlying
instrument
above
the
exercise
price
of
the
option,
and
when
the
Fund
writes
a
put
option
it
is
exposed
to
a
decline
in
the
price
of
the
underlying
instrument.
When
a
Fund
sells
an
uncovered
call
option,
it
does
not
simultaneously
have
a
long
position
in
the
underlying
security.
When
a
Fund
sells
an
uncovered
put
option,
it
does
not
simultaneously
have
a
short
position
in
the
underlying
security.
Uncovered
options
are
riskier
than
covered
options
because
there
is
no
underlying
security
held
by
the
Fund
that
can
act
as
a
partial
hedge.
Whether
an
option
which
the
Fund
has
written
expires
on
its
stipulated
expiration
date
or
the
Fund
enters
into
a
closing
purchase
transaction,
the
Fund
realizes
a
gain
(or
loss,
if
the
cost
of
a
closing
purchase
transaction
exceeds
the
premium
received
when
the
option
was
sold)
without
regard
to
any
unrealized
gain
or
loss
on
the
underlying
security,
and
the
liability
related
to
such
option
is
extinguished.
If
a
call
option
which
the
Fund
has
written
is
exercised,
the
Fund
realizes
a
capital
gain
or
loss
from
the
sale
of
the
underlying
security,
and
the
proceeds
from
such
sale
are
increased
by
the
premium
originally
received.
When
a
put
option
which
a
Fund
has
written
is
exercised,
the
amount
of
the
premium
originally
received
will
reduce
the
cost
of
the
security
which
a
Fund
purchases
upon
exercise
of
the
option.
Funds
Strategies
International
Developed
Markets
Fund
Return
enhancement,
hedging,
exposing
cash
to
markets
and
trade
settlement
Strategic
Bond
Fund
Return
enhancement
and
hedging
Global
Real
Estate
Securities
Fund
Exposing
cash
to
markets
and
trade
settlement
Outstanding
Contract
Amounts
Sold
Quarter
Ended
March
31,
2021
June
30,
2021
International
Developed
Markets
Fund
$
100,891,697
$
81,561,866
Strategic
Bond
Fund
227,444,833
364,501,179
Global
Real
Estate
Securities
Fund
25,351,016
20,265,175
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2021
June
30,
2021
International
Developed
Markets
Fund
$
100,015,944
$
79,844,725
Strategic
Bond
Fund
228,109,913
364,772,651
Global
Real
Estate
Securities
Fund
25,181,539
19,986,772
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
143
The
Funds’
use
of
written
options
involves,
to
varying
degrees,
elements
of
market
risk
in
excess
of
the
amount
recognized
in
the
Statements
of
Assets
and
Liabilities.
The
face
or
contract
amounts
of
these
instruments
reflect
the
extent
of
the
Funds’
exposure
to
market
risk.
The
risks
may
be
caused
by
an
imperfect
correlation
between
movements
in
the
price
of
the
instrument
and
the
price
of
the
underlying
securities
and
interest
rates.
Certain
Funds
may
enter
into
a
swaption
(an
option
on
a
swap).
In
a
swaption,
in
exchange
for
an
option,
the
buyer
gains
the
right
but
not
the
obligation
to
enter
into
a
specified
swap
agreement
with
the
issuer
on
a
specified
future
date.
The
writer
of
the
contract
receives
the
premium
and
bears
the
risk
of
unfavorable
changes
in
the
preset
rate
on
the
underlying
swap.
For
the
period
ended
June
30,
2021,
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
period
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
June
30,
2021,
the
following
Funds
entered
into
futures
contracts
primarily
for
the
strategies
listed
below:
The
Funds’
futures
contracts
notional
amounts
fluctuate
throughout
the
period
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).
Certain
Funds
may
enter
into
several
different
types
of
swap
agreements
including
credit
default,
interest
rate,
total
return
(equity
and/or
index)
and
currency
swaps.
Credit
default
swaps
are
a
counterparty
agreement
which
allows
the
transfer
of
third-party
credit
risk
(the
possibility
that
an
issuer
will
default
on
its
obligation
by
failing
to
pay
principal
or
interest
in
a
timely
manner)
from
one
party
to
another.
The
lender
faces
the
credit
risk
from
a
third-party
and
the
counterparty
in
the
swap
agrees
to
insure
this
risk
in
Notional
of
Options
Contracts
Outstanding
Funds
March
31,
2021
June
30,
2021
Strategic
Bond
Fund
$
24,055,000
$
—
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,
2021
June
30,
2021
U.S.
Strategic
Equity
Fund
$
7,339,690
$
14,581,240
U.S.
Small
Cap
Equity
Fund
8,223,250
10,962,050
International
Developed
Markets
Fund
131,874,203
121,419,108
Strategic
Bond
Fund
754,026,578
605,427,669
Global
Real
Estate
Securities
Fund
26,446,737
22,720,625
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
144
Notes
to
Financial
Statements
exchange
for
regular
periodic
payments.
Interest
rate
swaps
are
a
counterparty
agreement,
can
be
customized
to
meet
each
party’s
needs,
and
involve
the
exchange
of
a
fixed
or
variable
payment
per
period
for
a
payment
that
is
not
fixed.
Total
return
swaps
are
a
counterparty
agreement
where
two
parties
exchange
two
sets
of
cash
flows
on
predetermined
dates
for
an
agreed
upon
amount
of
time.
The
cash
flows
will
typically
be
an
equity
index
value
swapped
with
a
floating
rate
such
as
LIBOR
plus
or
minus
a
pre-defined
spread.
Total
return
swap
agreements
are
a
counterparty
agreement
intended
to
expose
cash
to
markets
or
to
effect
investment
transactions
consistent
with
those
Funds’
investment
objectives
and
strategies.
Currency
swaps
are
a
counterparty
agreement
where
two
parties
exchange
specified
amounts
of
different
currencies
which
are
followed
by
each
paying
the
other
a
series
of
interest
payments
that
are
based
on
the
principal
cash
flow.
At
maturity
the
principal
amounts
are
returned.
The
Funds
generally
expect
to
enter
into
these
transactions
primarily
to
preserve
a
return
or
spread
on
a
particular
investment
or
portion
of
their
portfolios
or
to
protect
against
any
increase
in
the
price
of
securities
they
anticipate
purchasing
at
a
later
date,
or
for
return
enhancement.
Under
most
swap
agreements
entered
into
by
a
Fund,
the
parties'
obligations
are
determined
on
a
"net
basis".
The
net
amount
of
the
excess,
if
any,
of
the
Funds’
obligations
over
their
entitlements
with
respect
to
each
swap
will
be
accrued
on
a
daily
basis
and
an
amount
of
cash
or
liquid
assets
having
an
aggregate
NAV
at
least
equal
to
the
accrued
excess
will
be
segregated.
To
the
extent
that
the
Funds
enter
into
swaps
on
other
than
a
net
basis,
the
amount
maintained
in
a
segregated
account
will
be
the
full
amount
of
the
Funds’
obligations,
if
any,
with
respect
to
such
swaps,
accrued
on
a
daily
basis.
If
there
is
a
default
by
the
other
party
to
such
a
transaction,
the
Funds
will
have
contractual
remedies
pursuant
to
the
agreement
related
to
the
transaction.
A
Fund
may
not
receive
the
expected
amount
under
a
swap
agreement
if
the
other
party
to
the
agreement
defaults
or
becomes
bankrupt.
Credit
Default
Swaps
The
Strategic
Bond
Fund
may
enter
into
credit
default
swaps.
A
credit
default
swap
can
refer
to
corporate
issues,
government
issues,
asset-backed
securities
or
an
index
of
assets,
each
known
as
the
reference
entity
or
underlying
asset.
The
Fund
may
act
as
either
the
buyer
or
the
seller
of
a
credit
default
swap
involving
one
party
making
a
stream
of
payments
to
another
party
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
default
or
other
credit
event.
Depending
upon
the
terms
of
the
contract,
the
credit
default
swap
may
be
closed
via
physical
settlement.
However,
due
to
the
possible
or
potential
instability
in
the
market,
there
is
a
risk
that
the
Fund
may
be
unable
to
deliver
the
underlying
debt
security
to
the
other
party
to
the
agreement.
Additionally,
the
Fund
may
not
receive
the
expected
amount
under
the
swap
agreement
if
the
other
party
to
the
agreement
defaults
or
becomes
bankrupt.
In
an
unhedged
credit
default
swap,
the
Fund
enters
into
a
credit
default
swap
without
owning
the
underlying
asset
or
debt
issued
by
the
reference
entity.
Credit
default
swaps
allow
the
Fund
to
acquire
or
reduce
credit
exposure
to
a
particular
issuer,
asset
or
basket
of
instruments.
As
the
seller
of
protection
in
a
credit
default
swap,
the
Fund
would
be
required
to
pay
the
par
or
other
agreed-upon
value
(or
otherwise
perform
according
to
the
swap
contract)
of
a
reference
debt
obligation
to
the
counterparty
in
the
event
of
a
default
(or
other
specified
credit
event)
and
the
counterparty
would
be
required
to
surrender
the
reference
debt
obligation.
In
return,
the
Fund
would
receive
from
the
counterparty
a
periodic
stream
of
payments
over
the
term
of
the
contract
provided
that
no
credit
event
has
occurred.
If
no
credit
event
occurs,
the
Fund
would
keep
the
stream
of
payments
and
would
have
no
payment
obligations.
As
a
seller
of
protection,
the
Fund
would
effectively
add
leverage
to
its
portfolio
because
in
addition
to
its
total
net
assets,
that
Fund
would
be
subject
to
investment
exposure
on
the
notional
amount
of
the
swap.
The
Fund
may
also
purchase
protection
via
credit
default
swap
contracts
in
order
to
offset
the
risk
of
default
of
debt
securities
held
in
their
portfolios
or
to
take
a
short
position
in
a
debt
security,
in
which
case
the
Fund
would
function
as
the
counterparty
referenced
in
the
preceding
paragraph.
If
a
credit
event
occurs
and
cash
settlement
is
not
elected,
a
variety
of
other
deliverable
obligations
may
be
delivered
in
lieu
of
the
specific
referenced
obligation.
The
ability
to
deliver
other
obligations
may
result
in
a
cheapest-to-deliver
option
(the
buyer
of
protection’s
right
to
choose
the
deliverable
obligation
with
the
lowest
value
following
a
credit
event).
The
Fund
may
use
credit
default
swaps
to
provide
a
measure
of
protection
against
defaults
of
the
issuers
(i.e.,
to
reduce
risk
where
the
Fund
owns
or
has
exposure
to
the
referenced
obligation)
or
to
take
an
active
long
or
short
position
with
respect
to
the
likelihood
(as
measured
by
the
credit
default
swap’s
spread)
of
a
particular
issuer’s
default.
Deliverable
obligations
for
credit
default
swaps
on
asset-backed
securities
in
most
instances
are
limited
to
the
specific
referenced
obligation
as
performance
for
asset-backed
securities
can
vary
across
deals.
Prepayments,
principal
paydowns,
and
other
writedown
or
loss
events
on
the
underlying
mortgage
loans
will
reduce
the
outstanding
principal
balance
of
the
referenced
obligation.
These
reductions
may
be
temporary
or
permanent
as
defined
under
the
terms
of
the
swap
agreement
and
the
notional
amount
for
the
swap
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
145
agreement
generally
will
be
adjusted
by
corresponding
amounts.
The
Strategic
Bond
Fund
may
use
credit
default
swaps
on
asset-
backed
securities
to
provide
a
measure
of
protection
against
defaults
(or
other
defined
credit
events)
of
the
referenced
obligation
or
to
take
an
active
long
or
short
position
with
respect
to
the
likelihood
of
a
particular
referenced
obligation’s
default
(or
another
defined
credit
event).
Credit
default
swap
agreements
on
credit
indices
involve
one
party
making
a
stream
of
payments
to
another
party
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
write-down,
principal
shortfall,
interest
shortfall
or
default
of
all
or
part
of
the
referenced
entities
comprising
the
credit
index.
A
credit
index
is
a
basket
of
credit
instruments
or
exposures
designed
to
be
representative
of
some
part
of
the
credit
market
as
a
whole.
These
indices
are
made
up
of
reference
credits
that
are
judged
by
a
poll
of
dealers
to
be
the
most
liquid
entities
in
the
credit
default
swap
market
based
on
the
sector
of
the
index.
Components
of
the
indices
may
include,
but
are
not
limited
to,
investment
grade
securities,
high
yield
securities,
asset-backed
securities,
emerging
markets,
and/or
various
credit
ratings
within
each
sector.
Credit
indices
are
traded
using
credit
default
swaps
with
standardized
terms
including
a
fixed
spread
and
standard
maturity
dates.
An
index
credit
default
swap
references
all
the
names
in
the
index,
and
if
there
is
a
default,
the
credit
event
is
settled
based
on
that
name’s
weight
in
the
index.
The
composition
of
the
indices
changes
periodically,
usually
every
six
months,
and,
for
most
indices,
each
name
has
an
equal
weight
in
the
index.
Traders
may
use
credit
default
swaps
on
indices
to
speculate
on
changes
in
credit
quality.
Implied
credit
spreads,
represented
in
absolute
terms,
utilized
in
determining
the
fair
value
of
credit
default
swap
agreements
on
corporate
issues
as
of
period-end
are
disclosed
in
the
Schedules
of
Investments
and
generally
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
(or
other
defined
credit
event)
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
entering
into
a
credit
default
swap
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
For
credit
default
swap
agreements
on
asset-
backed
securities
and
credit
indices,
the
quoted
market
prices
and
resulting
values
serve
as
the
indicator
of
the
current
status
of
the
payment/performance
risk.
Wider
credit
spreads
and
increasing
fair
values,
in
absolute
terms
when
compared
to
the
notional
amount
of
the
swap,
generally
represent
a
deterioration
of
the
referenced
entity’s
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
the
Fund
as
a
seller
of
protection
could
be
required
to
make
under
a
credit
default
swap
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
all
credit
default
swap
agreements
outstanding
as
of
June
30,
2021,
for
which
a
Fund
is
the
seller
of
protection
are
disclosed
in
the
Schedules
of
Investments.
These
potential
amounts
would
be
partially
offset
by
any
recovery
values
of
the
respective
referenced
obligations,
upfront
payments
received
upon
entering
into
the
agreement,
or
net
amounts
received
from
the
settlement
of
buy
protection
credit
default
swap
agreements
entered
into
by
the
Fund
for
the
same
referenced
entity
or
entities.
Credit
default
swaps
could
result
in
losses
if
the
Fund
does
not
correctly
evaluate
the
creditworthiness
of
the
company
or
companies
on
which
the
credit
default
swap
is
based.
Credit
default
swap
agreements
may
involve
greater
risks
than
if
the
Fund
had
invested
in
the
reference
obligation
directly
since,
in
addition
to
risks
relating
to
the
reference
obligation,
credit
default
swaps
are
subject
to
illiquidity
and
counterparty
risk.
The
Fund
will
generally
incur
a
greater
degree
of
risk
when
it
sells
a
credit
default
swap
than
when
it
purchases
a
credit
default
swap.
As
a
buyer
of
a
credit
default
swap,
the
Fund
may
lose
its
investment
and
recover
nothing
should
a
credit
event
fail
to
occur
and
the
swap
is
held
to
its
termination
date.
As
seller
of
a
credit
default
swap,
if
a
credit
event
were
to
occur,
the
value
of
any
deliverable
obligation
received
by
the
Fund,
coupled
with
the
upfront
or
periodic
payments
previously
received,
may
be
less
than
what
it
pays
to
the
buyer,
resulting
in
a
loss
of
value
to
the
Fund.
If
the
creditworthiness
of
the
Fund’s
swap
counterparty
declines,
the
risk
that
the
counterparty
may
not
perform
could
increase,
potentially
resulting
in
a
loss
to
the
Fund.
To
limit
the
counterparty
risk
involved
in
swap
agreements,
the
Fund
will
only
enter
into
swap
agreements
with
counterparties
that
meet
certain
standards
of
creditworthiness.
Although
there
can
be
no
assurance
that
the
Fund
will
be
able
to
do
so,
the
Fund
may
be
able
to
reduce
or
eliminate
its
exposure
under
a
swap
agreement
either
by
assignment
or
other
disposition,
or
by
entering
into
an
offsetting
swap
agreement
with
the
same
party
or
another
creditworthy
party.
The
Fund
may
have
limited
ability
to
eliminate
its
exposure
under
a
credit
default
swap
if
the
credit
quality
of
the
reference
entity
or
underlying
asset
has
declined.
For
the
period
ended
June
30,
2021,
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
period
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.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
146
Notes
to
Financial
Statements
Interest
Rate
Swaps
The
use
of
interest
rate
swaps
is
a
highly
specialized
activity
which
involves
investment
techniques
and
risks
different
from
those
associated
with
ordinary
portfolio
securities
transactions.
If
RIM
or
a
money
manager
using
this
technique
is
incorrect
in
its
forecast
of
fair
values,
interest
rates
and
other
applicable
factors,
the
investment
performance
of
a
Fund
might
diminish
compared
to
what
it
would
have
been
if
this
investment
technique
were
not
used.
Interest
rate
swaps
do
not
involve
the
delivery
of
securities
or
other
underlying
assets
or
principal.
Accordingly,
the
risk
of
loss
with
respect
to
interest
rate
swaps
is
limited
to
the
net
amount
of
interest
payments
that
a
Fund
is
contractually
obligated
to
make.
Interest
rate
swaps
are
traded
on
exchanges
and
are
subject
to
central
clearing.
If
the
clearing
house
or
futures
commission
merchant
defaults,
a
Funds'
risk
of
loss
consists
of
the
net
amount
of
interest
payments
that
a
Fund
is
contractually
entitled
to
receive.
The
counterparty
risk
for
cleared
derivatives
is
generally
lower
than
for
uncleared
derivatives.
However,
clearing
may
subject
a
Fund
to
increased
costs
or
margin
requirements.
For
the
period
ended
June
30,
2021,
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
period
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
June
30,
2021,
there
were
no
total
return
swaps
held
in
the
Funds.
Currency
Swaps
Certain
Funds
may
enter
into
currency
swap
agreements
to
enhance
returns
or
for
hedging
purposes.
Currency
swap
agreements
are
agreements
where
two
parties
exchange
specified
amounts
of
different
currencies
which
are
followed
by
paying
the
other
a
series
of
interest
payments
that
are
based
on
the
principal
cash
flow.
At
maturity,
the
principal
amounts
are
exchanged.
For
the
period
ended
June
30,
2021,
there
were
no
currency
swaps
held
in
the
Funds.
Master
Agreements
Certain
Funds
are
parties
to
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreements
(“ISDA
Master
Agreements”)
with
counterparties
that
govern
transactions
in
OTC
derivative
and
foreign
exchange
contracts
entered
into
by
the
Funds
and
those
counterparties.
The
ISDA
Master
Agreements
contain
provisions
for
general
obligations,
representations,
agreements,
collateral
and
events
of
default
or
termination.
Events
of
termination
and
default
include
conditions
that
may
entitle
either
party
to
elect
to
terminate
early
and
cause
settlement
of
all
outstanding
transactions
under
the
applicable
ISDA
Master
Agreement.
Any
election
to
terminate
early
could
be
material
to
the
financial
statements.
Since
different
types
of
forward
and
OTC
financial
derivative
transactions
have
different
mechanics
and
are
sometimes
traded
out
of
different
legal
entities
of
a
particular
counterparty
organization,
each
type
of
transaction
may
be
covered
by
a
different
ISDA
Master
Agreement,
resulting
in
the
need
for
multiple
agreements
with
a
single
counterparty.
As
the
ISDA
Master
Agreements
are
specific
to
unique
operations
of
different
asset
types,
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2021
June
30,
2021
Strategic
Bond
Fund
$
68,763,000
$
129,278,000
Interest
Rate
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2021
June
30,
2021
Strategic
Bond
Fund
$
117,377,952
$
87,418,717
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
147
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.
Local
Access
Products
Certain
Funds
may
invest
in
local
access
products,
also
known
as
certificates
of
participation,
participation
notes
or
participation
interest
notes.
Local
access
products
are
issued
by
banks
or
broker-dealers
and
are
designed
to
replicate
the
performance
of
foreign
companies
or
foreign
securities
markets
and
can
be
used
by
the
Fund
as
an
alternative
means
to
access
the
securities
market
of
a
frontier
emerging
market
country.
The
performance
results
of
local
access
products
will
not
replicate
exactly
the
performance
of
the
foreign
companies
or
foreign
securities
markets
that
they
seek
to
replicate
due
to
transaction
and
other
expenses.
Investments
in
local
access
products
involve
certain
risks
in
addition
to
those
associated
with
a
direct
investment
in
the
underlying
foreign
companies
or
foreign
securities
markets
whose
return
they
seek
to
replicate.
There
can
be
no
assurance
that
there
will
be
a
trading
market
or
that
the
trading
price
of
local
access
products
will
equal
the
underlying
value
of
the
foreign
company
or
foreign
securities
market
that
it
seeks
to
replicate.
The
Funds
rely
on
the
creditworthiness
of
the
counterparty
issuing
the
local
access
products
and
have
no
rights
against
the
issuer
of
the
underlying
security.
The
Funds
minimize
this
risk
by
entering
into
agreements
only
with
counterparties
that
RIM
deems
creditworthy.
Due
to
liquidity
and
transfer
restrictions,
the
secondary
markets
on
which
the
local
access
products
are
traded
may
be
less
liquid
than
the
markets
for
other
securities,
or
may
be
completely
illiquid.
Credit
Linked
Notes
Certain
Funds
may
invest
in
credit
linked
notes.
Credit
linked
notes
are
obligations
between
two
or
more
parties
where
the
payment
of
principal
and/or
interest
is
based
on
the
performance
of
some
obligation,
basket
of
obligations,
index
or
economic
indicator
(a
“reference
instrument”).
In
addition
to
the
credit
risk
associated
with
the
reference
instrument
and
interest
rate
risk,
the
buyer
and
seller
of
a
credit
linked
note
or
similar
structured
investment
are
subject
to
counterparty
risk.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
148
Notes
to
Financial
Statements
Short
Sales
The
U.S.
Small
Cap
Equity
Fund
may
enter
into
short
sale
transactions.
In
a
short
sale,
the
seller
sells
a
security
that
it
does
not
own,
typically
a
security
borrowed
from
a
broker
or
dealer.
Because
the
seller
remains
liable
to
return
the
underlying
security
that
it
borrowed
from
the
broker
or
dealer,
the
seller
must
purchase
the
security
prior
to
the
date
on
which
delivery
to
the
broker
or
dealer
is
required.
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
June
30,
2021,
the
market
value
of
the
securities
on
loan
through
the
reciprocal
lending
program
for
U.S.
Small
Cap
Equity
Fund
was
$10,063,219.
As
of
June
30,
2021,
the
U.S.
Small
Cap
Equity
Fund
held
$14,365,545
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
June
30,
2021,
to
the
extent
that
a
loan
was
collateralized
by
cash,
such
collateral
was
invested
by
the
securities
lending
agent,
Goldman
Sachs
Agency
Lending
("GSAL"),
in
the
U.S.
Cash
Collateral
Fund,
an
unregistered
fund
advised
by
RIM.
The
collateral
received
is
recorded
on
a
lending
Fund's
Statement
of
Assets
and
Liabilities
along
with
the
related
obligation
to
return
the
collateral.
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
149
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
fair
value)
in
repurchase
agreements
maturing
in
more
than
seven
days.
Mortgage-Related
and
Other
Asset-Backed
Securities
The
Strategic
Bond
Fund
may
invest
in
mortgage
or
other
asset-backed
securities
(“ABS”).
These
securities
may
include
mortgage
instruments
issued
by
U.S.
government
agencies
(“agency
mortgages”)
or
those
issued
by
private
entities
(“non-agency
mortgages”).
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
150
Notes
to
Financial
Statements
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,
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
151
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.
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
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
152
Notes
to
Financial
Statements
are
purchased
and
sold
on
a
forward
commitment
basis
with
an
approximate
principal
amount
and
maturity
date.
The
actual
principal
amount
and
maturity
date
will
be
determined
upon
settlement
when
the
specific
mortgage
pools
are
assigned.
These
securities
are
within
the
parameters
of
industry
“good
delivery”
standards.
As
of
June
30,
2021,
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
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,
including
those
described
in
this
paragraph,
or
a
reduction
in
the
effectiveness
of
related
Fund
transactions
such
as
hedges.
Any
such
effects
of
the
transition
away
from
LIBOR,
as
well
as
other
unforeseen
effects,
could
result
in
losses
to
a
Fund.
Market,
Credit
and
Counterparty
Risk
In
the
normal
course
of
business,
the
Funds
trade
financial
instruments
and
enter
into
financial
transactions
where
risk
of
potential
loss
exists
due
to
changes
in
the
market
(market
risk)
or
failure
of
the
other
party
to
a
transaction
to
perform
(credit
risk).
Similar
to
credit
risk,
the
Funds
may
also
be
exposed
to
counterparty
risk
or
risk
that
an
institution
or
other
entity
with
which
the
Funds
have
unsettled
or
open
transactions
will
default.
The
potential
loss
could
exceed
the
value
of
the
relevant
assets
recorded
in
the
Funds'
financial
statements
(the
“Assets”).
The
Assets
consist
principally
of
cash
due
from
counterparties
and
investments.
The
extent
of
the
Funds’
exposure
to
market,
credit
and
counterparty
risks
with
respect
to
the
Assets
approximates
their
carrying
value
as
recorded
in
the
Funds’
Statements
of
Assets
and
Liabilities.
Global
economies
and
financial
markets
are
becoming
increasingly
interconnected
and
political
and
economic
conditions
(including
recent
instability
and
volatility
due
to
international
trade
disputes)
and
events
(including
natural
disasters,
pandemics,
epidemics,
social
unrest
and
government
shutdowns)
in
one
country,
region
or
financial
market
may
adversely
impact
issuers
in
a
different
country,
region
or
financial
market.
As
a
result,
issuers
of
securities
held
by
a
Fund
may
experience
significant
declines
in
the
value
of
their
assets
and
even
cease
operations.
Such
conditions
and/or
events
may
not
have
the
same
impact
on
all
types
of
securities
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
153
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.
From
time
to
time,
as
occurred
in
early
2020,
outbreaks
of
infectious
illness,
public
health
emergencies
and
other
similar
issues
(“public
health
events”)
may
occur
in
one
or
more
countries
around
the
globe.
Such
public
health
events
have
had
significant
impacts
on
both
the
country
in
which
the
event
is
first
identified
as
well
as
other
countries
in
the
global
economy.
Public
health
events
have
reduced
consumer
demand
and
economic
output
in
one
or
more
countries
subject
to
the
public
health
event,
resulted
in
restrictions
on
trading
and
market
closures
(including
for
extended
periods
of
time),
increased
substantially
the
volatility
of
financial
markets,
and,
more
generally,
have
had
a
significant
negative
impact
on
the
economy
of
the
country
or
countries
subject
to
the
public
health
event.
Public
health
events
have
also
adversely
affected
the
global
economy,
global
supply
chains
and
the
securities
in
which
the
Funds
invest
across
a
number
of
industries,
sectors
and
asset
classes.
The
extent
of
the
impact
depends
on,
among
other
factors,
the
scale
and
duration
of
any
such
public
health
event.
Public
health
events
have
resulted
in
the
governments
of
affected
countries
taking
potentially
significant
measures
to
seek
to
mitigate
the
transmission
of
the
infectious
illness
or
other
public
health
issue
including,
among
other
measures,
imposing
travel
restrictions
and/or
quarantines
and
limiting
the
operations
of
non-essential
businesses.
Any
of
these
events
could
adversely
affect
a
Fund’s
investments
and
performance,
including
by
exacerbating
other
pre-
existing
political,
social
and
economic
risks.
Governmental
authorities
and
other
entities
may
respond
to
such
events
with
fiscal
and/or
monetary
policy
changes.
It
is
not
guaranteed
that
these
policy
changes
will
have
their
intended
effect
and
it
is
possible
that
the
implementation
of
or
subsequent
reversal
of
such
policy
changes
could
increase
volatility
in
financial
markets,
which
could
adversely
affect
a
Fund’s
investments
and
performance.
3.
Investment
Transactions
Securities
During
the
period
ended
June
30,
2021,
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:
4.
Related
Party
Transactions,
Fees
and
Expenses
Adviser,
Administrator,
Transfer
and
Dividend
Disbursing
Agent
RIM
provides
or
oversees
the
provision
of
all
investment
advisory
and
portfolio
management
services
for
the
Funds.
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.
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
Purchases
Sales
U.S.
Strategic
Equity
Fund
$
124,623,564
$
149,423,631
U.S.
Small
Cap
Equity
Fund
175,827,612
206,323,082
International
Developed
Markets
Fund
42,893,374
96,658,951
Strategic
Bond
Fund
444,611,713
333,870,000
Global
Real
Estate
Securities
Fund
327,520,167
314,380,754
Purchases
Sales
Strategic
Bond
Fund
$
294,127,758
$
245,909,742
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
154
Notes
to
Financial
Statements
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.
The
following
table
shows
the
total
amount
of
each
of
these
fees
paid
by
the
Funds
for
the
period
ended
June
30,
2021:
There
were
no
contractual
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
June
30,
2021
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
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
Administrative
U.S.
Strategic
Equity
Fund
$
2,116,829
$
144,988
U.S.
Small
Cap
Equity
Fund
1,145,625
63,646
International
Developed
Markets
Fund
1,781,750
98,986
Strategic
Bond
Fund
2,603,426
236,675
Global
Real
Estate
Securities
Fund
3,983,479
248,967
Amount
U.S.
Strategic
Equity
Fund
$
12,759
U.S.
Small
Cap
Equity
Fund
5,601
International
Developed
Markets
Fund
8,711
Strategic
Bond
Fund
20,827
Global
Real
Estate
Securities
Fund
21,909
Russell
Investment
Funds
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
155
money
manager’s
portfolio
securities
transactions
for
the
segment
of
a
Fund’s
portfolio
assigned
to
the
money
manager.
RIM
has
authorized
RIIS
to
effect
certain
futures,
swaps,
OTC
derivative
transactions,
and
cleared
swaps,
including
foreign
currency
spots,
forwards
and
options
trading
on
behalf
of
the
Funds.
The
Funds
are
permitted
to
purchase
or
sell
securities
from
or
to
certain
related
affiliated
funds
under
specified
conditions
outlined
in
procedures
adopted
by
the
Board.
The
procedures
have
been
designed
to
ensure
that
any
purchase
or
sale
of
securities
by
the
Funds
from
or
to
another
fund
or
portfolio
that
are,
or
could
be,
considered
an
affiliate
by
virtue
of
having
a
common
investment
adviser
(or
affiliated
investment
advisers),
common
Trustees
and/or
common
officers
complies
with
Rule
17a
-7
of
the
Investment
Company
Act.
Further,
as
defined
under
the
procedures
each
transaction
is
effected
at
the
current
market
value.
During
the
period
ended
June
30,
2021,
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
31
funds
and
RIF,
which
has
nine
funds.
Each
of
the
Trustees
is
a
Trustee
of
RIC
and
RIF.
The
Russell
Investments
Fund
Complex
compensates
each
Trustee
who
is
not
an
employee
of
RIM
or
its
affiliates.
Trustee
compensation
and
expenses
are
allocated
to
each
Fund
based
on
its
net
assets
relative
to
other
funds
in
the
Russell
Investments
Fund
Complex.
For
the
period
ended
June
30,
2021,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$928,870.
5.
Federal
Income
Taxes
At
June
30,
2021,
the
Funds
did
not
have
any
capital
loss
carryforwards.
6.
Record
Ownership
At
June
30,
2021,
the
following
table
includes
shareholders
of
record
with
greater
than
10%
of
the
total
outstanding
shares
of
each
respective
Fund:
7.
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.
8.
Commitments
and
Contingencies
The
Strategic
Bond
Fund
may
enter
into
certain
credit
agreements,
all
or
a
portion
of
which
may
be
unfunded.
The
Fund
is
obligated
to
fund
these
loan
commitments
at
the
borrowers'
discretion.
Unfunded
loan
commitments
and
funded
portions
of
credit
agreements
are
marked
to
market
daily
and
any
unrealized
appreciation
or
depreciation
is
included
in
the
Statements
of
Assets
and
Liabilities
and
the
Statements
of
Operations.
Funded
portions
of
credit
agreements
are
presented
in
the
Schedules
of
Investments.
For
the
period
ended
June
30,
2021,
the
Funds
had
no
unfunded
loan
commitments.
9.
Subsequent
Events
Management
has
evaluated
the
events
and/or
transactions
that
have
occurred
through
the
date
the
financial
statements
were
issued
and
noted
no
events
have
occurred
that
require
disclosure
except
the
following:
On
July
1,
2021,
the
Board
declared
dividends
payable
from
net
investments
income.
Dividends
were
paid
on
July
6,
2021
to
shareholders
of
record
effective
with
the
opening
on
July
2,
2021.
#
of
Shareholders
%
U.S.
Strategic
Equity
Fund
2
77.8
U.S.
Small
Cap
Equity
Fund
2
83.8
International
Developed
Markets
Fund
2
80.9
Strategic
Bond
Fund
1
69.4
Global
Real
Estate
Securities
Fund
2
88.6
Russell
Investment
Funds
Affiliated
Brokerage
Transactions
—
June
30,
2021
(Unaudited)
156
Affiliated
Brokerage
Transactions
As
stated
in
the
Note
4
in
the
Notes
to
Financial
Statements
contained
in
this
semi-annual
report,
the
Funds
utilize
RIIS
and
its
independent
brokers.
RIIS
is
a
registered
broker
dealer
and
investment
adviser
and
an
affiliate
of
RIM.
RIIS
uses
a
multi-venue
trade
management
approach
whereby
RIIS
allocates
trades
among
RIIS’
network
of
independent
brokers
for
execution,
clearing,
and
other
services.
Trades
placed
through
RIIS
and
its
independent
brokers
are
made
(i)
to
manage
trading
associated
with
changes
in
money
managers,
rebalancing
across
existing
money
managers,
cash
flows
and
other
portfolio
transitions,
(ii)
to
execute
portfolio
securities
transactions
for
each
Fund’s
assets
that
RIM
determines
not
to
allocate
to
money
managers,
(iii)
to
execute
portfolio
securities
transactions
for
the
portion
of
a
Fund’s
assets
that
RIM
manages
based
upon
model
portfolios
provided
by
the
Funds’
non-discretionary
managers
or
(iv)
to
execute
money
manager
portfolio
securities
transactions
for
the
segment
of
a
Fund’s
portfolio
assigned
to
the
money
manager.
RIM
has
authorized
RIIS
to
effect
certain
futures,
swaps,
OTC
derivative
transactions,
and
cleared
swaps,
including
foreign
currency
spots,
forwards
and
options
trading
on
behalf
of
the
Funds.
Amounts
retained
by
RIIS
for
the
period
ended
June
30,
2021
were
as
follows:
Fund
Name
Amount
U.S.
Strategic
Equity
Fund
$
9,574
U.S.
Small
Cap
Equity
Fund
34,135
International
Developed
Markets
Fund
30,175
Global
Real
Estate
Securities
Fund
64,880
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
157
Approval
of
Investment
Advisory
Agreement
The
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
requires
that
the
Board
of
Trustees
(the
“Board”),
including
a
majority
of
its
members
who
are
not
considered
to
be
“interested
persons”
under
the
1940
Act
(the
“Independent
Trustees”)
voting
separately,
approve
for
an
initial
term
not
to
exceed
two
years
and,
thereafter,
approve
the
continuation
of
the
advisory
agreement
with
Russell
Investment
Management,
LLC
(“RIM”)
(the
“RIM
Agreement”)
and
the
portfolio
management
contract
with
each
Money
Manager
of
the
Funds
(collectively,
the
“portfolio
management
contracts”
and,
with
the
RIM
Agreement,
the
“Agreements”)
on
at
least
an
annual
basis
and
that
the
terms
and
conditions
of
the
RIM
Agreement
and
the
terms
and
conditions
of
each
portfolio
management
contract
provide
for
its
termination
if
continuation
is
not
approved
annually.
The
Board,
which
is
currently
comprised
entirely
of
Independent
Trustees
(the
“Trustees”),
considered
the
continuation
of
the
Agreements
at
a
meeting
held
by
video
conference
on
May
21,
2021
(the
“Agreement
Evaluation
Meeting”)
in
reliance
on
the
exemptive
order
for
temporary,
conditional
relief
from
the
in-person
voting
requirement
of
Section
15(c)
of
the
1940
Act
provided
by
the
U.S.
Securities
and
Exchange
Commission
(the
“SEC”).
During
the
course
of
a
year,
the
Trustees
receive
a
wide
variety
of
materials
regarding,
among
other
things,
the
investment
performance
of
the
Funds,
sales
and
redemptions
of
the
Funds’
shares,
management
of
the
Funds
and
other
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
and
compliance
with
applicable
regulatory
requirements.
In
preparation
for
the
annual
review,
the
Trustees,
with
the
advice
and
assistance
of
their
independent
counsel
(“Independent
Counsel”),
also
requested
and
considered
(1)
information
and
reports
prepared
by
RIM
relating
to
the
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
to
the
Funds;
(2)
information
and
reports
prepared
by
RIM
relating
to
the
profitability
of
each
Fund
to
RIM
(and
its
affiliates);
and
(3)
information
received
from
an
independent,
nationally
recognized
provider
of
investment
company
information
comparing
the
performance
of
the
Funds
and
their
respective
operating
expenses
over
various
periods
of
time
with
other
peer
funds
not
managed
by
RIM,
believed
by
the
provider
to
be
generally
comparable
to
the
Funds
(the
“Third-Party
Information”).
In
the
case
of
each
Fund,
its
other
peer
funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Comparable
Funds,”
and,
with
the
Fund,
such
Comparable
Funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Performance
Universe”
in
the
case
of
performance
comparisons
and
the
Fund’s
“Expense
Universe”
in
the
case
of
operating
expense
comparisons.
The
foregoing
and
other
information
received
by
the
Board
in
connection
with
its
evaluations
of
the
Agreements
are
collectively
called
the
“Agreement
Evaluation
Information.”
The
Trustees’
evaluations
also
reflected
the
knowledge
and
familiarity
gained
as
Board
members
of
the
Funds
and
the
other
RIM-managed
funds
for
which
the
Board
has
supervisory
responsibility
(“Other
RIM
Funds”)
with
respect
to
services
provided
by
RIM,
RIM’s
affiliates
and
each
Money
Manager.
The
Trustees
received
a
memorandum
from
counsel
to
the
Funds
(“Fund
Counsel”)
discussing
the
legal
standards
for
their
consideration
of
the
continuations
of
the
Agreements,
and
separately
received
a
memorandum
regarding
their
responsibilities
from
their
Independent
Counsel.
On
April
26,
2021,
the
Trustees
met
privately
by
video
conference
with
Independent
Counsel
to
discuss
the
Agreement
Evaluation
Information
received
to
that
date.
At
a
meeting
held
on
April
27,
2021
(the
“Agreement
Information
Review
Meeting”),
the
Trustees,
in
preparation
for
the
Agreement
Evaluation
Meeting,
met
by
video
conference
in
an
executive
session
with
a
representative
of
TA
Associates
Management,
L.P.
(“TA
Associates”),
at
which
Independent
Counsel
and
Fund
Counsel,
and
the
Chief
Executive
Officer
and
Chief
Financial
Officer
of
RIM’s
parent
company
were
present;
met
by
video
conference
with
representatives
of
RIM;
and
then
the
Trustees
met
by
video
conference
in
a
private
session
with
Independent
Counsel
at
which
no
representatives
of
RIM
or
the
Funds’
management
were
present
to
further
review
and
discuss
the
Agreement
Evaluation
Information
received
to
that
date.
On
the
basis
of
that
review,
the
Trustees
communicated
additional
questions
and
requested
additional
Agreement
Evaluation
Information.
On
May
11,
2021,
the
Board
Chair
met
by
conference
telephone
call
with
representatives
of
management
to
further
discuss
the
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
and
subsequent
thereto.
Certain
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
and
by
the
Board
Chair
following
the
Agreement
Information
Review
Meeting
was
provided
to
the
Board
on
May
7,
2021.
On
May
12,
2021,
the
Trustees
met
by
video
conference
with
representatives
of
RIM
and
then
met
in
private
session
with
Independent
Counsel
to
further
discuss
the
Agreement
Evaluation
Information
and
review
the
additional
Agreement
Evaluation
Information
provided
to
date.
After
May
12,
2021,
the
Board
Chair
engaged
in
discussions
with
representatives
of
management
regarding
the
Board’s
requests
relating
to
the
additional
Agreement
Evaluation
Information.
On
May
18,
2021,
the
Board
was
provided
with
updated
information
in
response
to
the
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
and
subsequent
thereto.
At
the
Agreement
Evaluation
Meeting,
the
Trustees
again
met
by
video
conference
in
a
private
session
with
Independent
Counsel
to
review
the
additional
or
updated
Agreement
Evaluation
Information
received
to
that
date.
At
the
Agreement
Evaluation
Meeting,
the
Trustees
considered
the
proposed
continuance
of
the
Agreements
with
RIM,
Fund
management,
Independent
Counsel
and
Fund
Counsel.
The
Board
considered
that
the
Agreement
Evaluation
Information
and
presentations
made
by
RIM
at
the
Agreement
Evaluation
Meeting
as
part
of
this
review
encompassed
the
Funds
and
all
Other
RIM
Funds.
Information
received
by
the
Board
prior
to
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
158
Basis
for
Approval
of
Investment
Advisory
Agreement
and
at
the
Agreement
Information
Review
Meeting,
the
Agreement
Evaluation
Meeting,
and
other
meetings
identified
above
is
included
in
the
Agreement
Evaluation
Information.
Prior
to
voting
at
the
Agreement
Evaluation
Meeting,
the
Trustees
met
in
private
session
with
Independent
Counsel
to
consider
Agreement
Evaluation
Information
received
from
RIM
and
management
at
and
prior
to
the
Agreement
Evaluation
Meeting.
The
discussion
below
reflects
all
of
these
reviews.
In
evaluating
the
Agreements,
the
Board
considered
that
each
of
the
Funds
employs
a
manager-of-managers
method
of
investment
and
RIM’s
past
expressed
belief
that
such
Funds,
in
employing
a
manager-of-managers
method
of
investment,
operate
in
a
manner
that
is
different
from
most
other
investment
companies.
In
the
case
of
most
other
investment
companies,
an
investment
advisory
fee
is
paid
by
the
investment
company
to
its
adviser
which,
in
turn,
employs
and
compensates
individual
portfolio
managers
to
make
specific
securities
selections
consistent
with
the
adviser’s
style
and
investment
philosophy.
RIM,
however,
has
engaged
multiple
unaffiliated
Money
Managers.
RIM
is
responsible
for
paying
fees
to
the
Money
Managers
(“Money
Manager
Fees”)
out
of
the
fees
paid
by
the
Funds
to
RIM
for
its
services
under
the
RIM
Agreement
(the
“Advisory
Fee”).
A
Money
Manager
may
have
(1)
a
discretionary
asset
management
assignment
pursuant
to
which
it
is
allocated
a
portion
of
a
Fund’s
assets
to
manage
directly
and
for
which
it
selects
and
trades
the
individual
portfolio
securities
for
the
assets
assigned
to
it;
(2)
a
non-discretionary
assignment
pursuant
to
which
it
provides
a
model
portfolio
to
RIM
representing
its
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
a
Fund;
or
(3)
both
a
discretionary
and
a
non-discretionary
assignment.
Money
Manager
Fees
for
a
non-discretionary
assignment
may
be
the
same
as,
or
lower
than,
the
fees
would
be
for
a
discretionary
assignment
with
the
same
Money
Manager.
The
Board
considered
that
RIM
(rather
than
any
Money
Manager)
is
responsible
under
the
RIM
Agreement
for
determining,
implementing
and
maintaining
the
investment
program
for
each
Fund.
The
Board
considered
that,
although
RIM
traditionally
has
managed
Fund
exposures
through
the
selection
of
and
allocations
to
Money
Manager
strategies,
innovations
in
RIM’s
portfolio
management
techniques
together
with
evolutions
in
available
technology,
tools
and
analytics
have
resulted
in
certain
changes
in
RIM’s
approach
to
its
Fund
investment
advisory
services
in
recent
years.
In
this
regard,
assets
of
each
Fund
continue
to
be
allocated
among
RIM
and
the
multiple
Money
Manager
strategies
selected
by
RIM
for
that
Fund.
RIM
may
change
a
Fund’s
asset
allocation
to
a
Money
Manager
at
any
time,
including
by
allocating
no
Fund
assets
to
one
or
more
Money
Manager
strategies.
In
addition,
RIM
continues
to
manage
the
investment
of
each
Fund’s
cash
and
portions
of
a
Fund
during
transitions
between
discretionary
Money
Managers.
RIM
also
continues
to
manage
directly
any
portion
of
each
Fund’s
assets
that
RIM
determines
not
to
allocate
to
Money
Manager
strategies.
Most
Funds
usually,
but
not
always,
pursue
a
strategy
to
be
fully
invested
by
exposing
all
or
a
portion
of
their
cash
to
the
performance
of
appropriate
markets
by
purchasing
equity
securities,
fixed
income
securities
and/or
derivatives,
which
typically
include,
among
other
derivative
instruments,
index
futures
contracts,
exchange-traded
fixed-income
futures
contracts,
forwards,
swaps
and
to
be
announced
securities.
This
cash
“equitization”
strategy
is
managed
by
RIM.
With
respect
to
the
portion
of
a
Fund
that
RIM
manages
based
upon
non-
discretionary
Money
Manager
model
portfolios,
RIM
constructs
a
portfolio
that
represents
the
aggregation
of
the
model
portfolios
based
upon
RIM’s
allocation
to
each
Money
Manager’s
strategy
through
an
“enhanced
portfolio
implementation,”
or
“emulation,”
process
designed
to
capture
return
streams
of
multiple
managers
in
a
centralized
portfolio.
RIM
then
implements
the
portfolio
consistent
with
the
aggregation
of
the
model
portfolios,
but
may
deviate
from
such
aggregation
for
the
purposes
of
exposure
and
transaction
cost
management.
RIM
noted
that
the
Funds
may
benefit
from
emulation
through,
among
other
things,
improved
incremental
returns
over
time
due
to
lower
aggregate
transaction
costs
and
turnover
from
reduced
trading
volumes,
and
the
potential
for
additional
commission
recapture.
In
all
cases,
Fund
assets
are
managed
directly
by
RIM
pursuant
to
authority
provided
by
the
RIM
Agreement.
The
Board
noted
the
variety
and
complexity
of
investment
advisory
services
that
RIM
provides
to
the
Funds
under
the
RIM
Agreement.
RIM
is
responsible
for
selecting
(subject
to
Board
approval),
overseeing
and
evaluating
the
performance
results
of
the
Money
Managers
for
each
Fund
and
for
actively
managing
allocations
and
reallocations
of
its
assets
among
Money
Manager
strategies
and
RIM
itself.
Each
discretionary
Money
Manager
for
a
Fund
in
effect
performs
the
function
of
an
individual
portfolio
manager
who
is
responsible
for
researching,
selecting
and
trading
portfolio
securities
for
the
portion
of
the
Fund
assigned
to
it
by
RIM
in
accordance
with
the
Fund’s
applicable
investment
objective,
policies
and
restrictions,
any
specific
guidelines
placed
by
RIM
upon
their
selection
of
portfolio
securities
and
the
Money
Manager’s
specified
role
in
a
Fund.
A
Money
Manager’s
primary
role
is
to
pursue
a
particular
investment
strategy
that
has
been
selected
and
assigned
to
it
by
RIM
through
sector
and
security
selection
and
risk
control
measures
in
a
manner
that
is
consistent
with
its
RIM-assigned
guidelines.
The
Money
Managers
operate
subject
to
the
oversight
of,
and
instructions
from,
RIM.
For
each
Fund,
RIM
is
responsible
for,
among
other
things,
providing
each
Money
Manager
with
the
investment
guidelines
and
policies
for
the
Fund
and
any
specific
investment
restrictions;
monitoring
the
performance
of
each
Money
Manager
and
Fund;
generally
supervising
compliance
by
the
discretionary
Money
Managers
and,
as
applicable,
the
non-discretionary
Money
Managers
with
each
Fund’s
investment
objective
and
policies;
with
respect
to
Funds
with
non-discretionary
Money
Managers,
purchasing
and
selling
securities
for
the
Funds
based
on
model
portfolios
representing
the
investment
recommendations
of
the
non-discretionary
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
159
Money
Managers;
managing
Fund
assets
that
are
not
allocated
to
Money
Manager
strategies;
managing
the
Funds’
cash
balances;
and
recommending
at
least
annually
to
the
Board
whether
portfolio
management
contracts
should
be
renewed,
modified
or
terminated.
In
addition
to
its
annual
recommendation
as
to
the
renewal,
modification
or
termination
of
portfolio
management
contracts,
RIM
is
responsible
for
recommending
to
the
Board
additions
of
new
Money
Managers
or
terminations
or
replacements
of
existing
Money
Managers
at
any
time
when,
based
on
RIM’s
research
and
ongoing
review
and
analysis,
such
actions
are,
in
RIM’s
judgment,
appropriate.
RIM
may
impose
specific
investment
or
strategy
parameters
from
time
to
time
on
each
Money
Manager
intended
to
capitalize
on
the
strengths
of
that
Money
Manager
or
to
coordinate
the
investment
activities
of
Money
Managers
for
the
Fund
in
a
complementary
manner.
Therefore,
RIM’s
selection
of
Money
Managers
is
made
not
only
on
the
basis
of
performance
considerations
but
also
on
the
basis
of
other
factors,
including
anticipated
compatibility
with
other
Money
Managers
in
the
same
Fund.
In
light
of
the
foregoing,
the
overall
performance
of
each
Fund
has
reflected,
in
great
part,
the
performance
of
RIM
in
designing
the
Fund’s
investment
program,
structuring
the
Fund,
selecting
effective
Money
Managers,
and
allocating
assets
among
the
Money
Manager
strategies
and
RIM
in
a
manner
designed
to
achieve
the
investment
objectives
of
the
Fund.
In
the
Agreement
Evaluation
Information,
RIM
noted
the
broad
array
of
investment
management
services
provided
to
the
Funds
by
RIM
compared
to
the
relatively
narrow
portfolio
management
services
provided
to
the
Funds
by
Money
Managers.
RIM
has
advised
the
Board
that
its
portfolio
construction
process
is
investment
led
and
designed
to
be
conducted
in
a
manner
that
is
consistent
with
its
fiduciary
duties.
The
objective
of
RIM’s
portfolio
construction
is
to
meet
a
portfolio’s
investment
objective
and
established
excess
return
target.
In
the
Agreement
Evaluation
Information,
RIM
noted
that
while
it
has
general
goals
for
Money
Manager
Fees
in
the
aggregate
globally,
there
are
no
specific
fee
targets
that
are
established
for
individual
portfolios,
which
includes
each
of
the
Funds.
In
the
Agreement
Evaluation
Information,
RIM
advised
the
Board
that
Money
Manager
Fees,
in
the
aggregate,
must
allow
RIM
to
remain
a
going
concern
with
sufficient
resources
to
provide
required
services
to
the
Funds
and
to
earn
a
reasonable
profit.
RIM
advised
the
Board
that
RIM
portfolio
managers
utilize
a
number
of
tools
in
the
portfolio
construction
process
in
order
to
meet
a
Fund’s
objective
taking
into
account
Money
Manager
Fees.
These
tools
include,
among
others,
Money
Manager
selection,
Money
Manager
allocation,
Money
Manager
Fee
negotiations,
guideline
customization
and
RIM’s
direct
management
of
a
portion
of
the
Manager-of-Managers
Funds’
assets
(as
further
described
below).
The
Board
considered
that
the
prospectuses
for
the
Funds
and
other
public
disclosures
have
emphasized,
and
continue
to
emphasize,
to
investors
RIM’s
role
as
the
principal
investment
manager
for
each
such
Fund,
rather
than
the
investment
selection
or
recommendation
role
of
the
Money
Managers,
and
describe
the
manner
in
which
the
Funds
operate
so
that
investors
may
take
that
information
into
account
when
deciding
to
purchase
shares
of
any
Fund.
The
Board
further
considered
that
Fund
investors
in
pursuing
their
investment
goals
and
objectives
likely
purchased
their
shares
on
the
basis
of
this
information
and
RIM’s
reputation
for
and
performance
record
in
managing
the
Funds’
manager-of-managers
structure.
The
Board
also
considered
the
demands
and
complexity
of
managing
the
Funds
pursuant
to
the
manager-of-managers
structure,
the
special
expertise
of
RIM
with
respect
to
the
manager-of-managers
structure
of
the
Funds
and
the
possibility
that,
at
the
current
expense
ratio
of
each
Fund,
there
might
be
no
acceptable
alternative
investment
managers
to
replace
RIM
on
comparable
terms
given
the
need
to
continue
the
manager-of-managers
strategy
of
such
Fund
selected
by
shareholders
in
purchasing
their
shares.
In
addition
to
these
general
factors
relating
to
the
manager-of-managers
structure
of
the
Funds,
the
Trustees
considered,
with
respect
to
each
Fund,
various
specific
factors
in
evaluating
the
renewal
of
the
RIM
Agreement,
including
the
following:
1.
The
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
by
RIM;
2.
The
Advisory
Fee
paid
by
the
Fund
to
RIM
and
the
fact
that
it
encompasses
all
investment
advisory
fees
paid
by
the
Fund,
including
the
fact
that
RIM
pays
all
Money
Manager
Fees
out
of
its
Advisory
Fee;
3.
Information
provided
by
RIM
as
to
other
fees
and
benefits
received
by
RIM
or
its
affiliates
in
connection
with
the
Fund,
including
any
administrative
or
transfer
agent
fees
and
any
fees
received
for
management
or
administration
of
uninvested
cash
and
securities
lending
cash
collateral,
soft
dollar
arrangements,
which
RIM
discontinued
effective
December
31,
2020,
and
commissions
in
connection
with
portfolio
securities
and
foreign
exchange
transactions;
4.
Information
provided
by
RIM
as
to
expenses
incurred
by
the
Fund;
5.
Information
provided
by
RIM
as
to
the
profits
that
RIM
derives
from
its
mutual
fund
operations
generally
and
from
the
Fund;
and
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
160
Basis
for
Approval
of
Investment
Advisory
Agreement
6.
Information
provided
by
RIM
concerning
economies
of
scale
and
whether
any
scale
economies
are
adequately
shared
with
the
Fund.
In
connection
with
the
Trustees’
consideration
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
which
are
expected
to
be
provided,
to
the
Funds,
including
Fund
portfolio
management
services,
the
Board
discussed
with
senior
representatives
of
Russell
Investments
(as
defined
below)
the
impact
of
certain
recent
changes
in
Russell
Investments’
senior
management
and
personnel
providing
investment
management
and
other
services
to
the
Funds,
including
the
Chief
Investment
Officer
of
RIM
and
the
Funds.
The
Board
also
discussed
the
Funds’
compliance
program
with
the
Funds’
Chief
Compliance
Officer
(“CCO”),
including
certain
items
reported
in
the
annual
report
of
the
CCO
required
under
Rule
38a-1
of
the
1940
Act
(the
“Annual
CCO
Report”)
and
the
status
of
the
goals
for
the
past
year
related
to
the
compliance
program
that
the
CCO
identified
in
connection
with
last
year’s
Annual
CCO
Report.
The
Annual
CCO
Report
also
included
information
on
the
status
of
various
compliance,
operations
and
technology
initiatives
previously
discussed
with
the
Board.
The
CCO
discussed
with
the
Board,
and
the
Board
noted,
enhancements
made
to
the
compliance
programs
of
RIM
and
the
Funds
over
the
past
year
and
suggestions
for
additional
enhancements
going
forward,
as
well
as
certain
staffing
enhancements
and
the
recent
changes
in
senior
management.
The
CCO
advised
the
Board
that
the
Funds’
compliance
program
meets
the
standards
of
Rule
38a-1
under
1940
Act
and
that,
as
required
by
Rule
38a-1
under
the
1940
Act,
RIM
has
adopted
policies
and
procedures
that
are
reasonably
designed
to
prevent
violation
of
the
Federal
Securities
Laws
(as
such
term
is
defined
in
the
1940
Act)
with
respect
to
the
services
RIM
provides
to
the
Funds.
Throughout
the
year,
the
CCO
and
RIM
senior
management
discussed
the
impact
of
the
COVID-19
pandemic
on
the
operations
and
compliance
programs
of
RIM,
the
Money
Managers
and
the
Funds’
other
significant
service
providers
and,
based
on
those
discussions
and
the
Agreement
Evaluation
Information,
there
did
not
appear
to
the
Board
to
be
any
diminution
in
the
nature,
extent
and
quality
of
services
provided
by
each
of
these
service
providers
under
their
respective
agreements
with
the
Funds
as
a
result
of
the
COVID-19
pandemic.
Since
June
1,
2016,
RIM
has
been
an
indirect
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company
through
which
the
limited
partners
of
certain
private
equity
funds
affiliated
with
TA
Associates
indirectly
have
a
majority
ownership
interest
through
alternative
investment
vehicles
and
the
limited
partners
of
certain
private
equity
funds
affiliated
with
Reverence
Capital
Partners,
L.P.
(“Reverence
Capital”)
indirectly
have
a
significant
minority
controlling
ownership
interest
through
certain
Reverence
Capital
funds
and
alternative
investment
vehicles
in
RIM
and
its
affiliates
(“Russell
Investments”).
Members
of
Russell
Investments’
current
and
former
management
and
private
markets
firm
Hamilton
Lane
Incorporated’s
parent
company
also
hold
minority,
non-
controlling
positions
in
Russell
Investments.
In
connection
with
the
Board’s
initial
approval
of
the
RIM
Agreement,
TA
Associates
advised
the
Board
of
its
plans
ultimately
to
effect
a
sale
or
other
disposition
of
its
ownership
interest
in
Russell
Investments.
Any
such
future
transaction
(“Transaction”)
could
cause
a
change
of
control
of
RIM
resulting,
among
other
things,
in
an
assignment
and
termination
of
the
RIM
Agreement,
as
required
by
the
1940
Act,
and
by
the
terms
and
conditions
of
the
RIM
Agreement.
In
the
event
of
a
Transaction,
the
Board
would
be
required
to
consider
the
approval
of
the
terms
and
conditions
of
a
replacement
agreement
(“Successor
Agreement”)
for
the
RIM
Agreement
and
thereafter
to
submit
the
Successor
Agreement
to
each
Fund’s
shareholders
for
approval,
as
required
by
the
1940
Act.
During
the
executive
session
with
a
representative
of
TA
Associates
held
in
connection
with
the
Agreement
Information
Review
Meeting,
among
other
things,
the
status
of
TA
Associates’
indirect
investment
in
RIM
and
RIM’s
access
to
sufficient
resources
to
support
its
activities
in
respect
of
the
Funds,
including
in
light
of
the
current
market
environment,
current
debt
levels
of
Russell
Investments
Group,
Ltd.
and
certain
recent
changes
in
Russell
Investments’
senior
management
were
discussed.
The
Board
was
advised
that
there
was
no
change
in
TA
Associates’
plans
regarding
its
ownership
interest
in
Russell
Investments
from
those
plans
previously
reported
to
the
Board
and
of
TA
Associates’
commitment
to
continue
to
support
the
same
level
of
services
currently
being
provided
by
RIM
and
its
affiliates
to
the
Funds.
As
noted
above,
RIM,
in
addition
to
managing
the
investment
of
each
Fund’s
cash,
directly
manages
a
portion
(which
may
represent
a
significant
portion)
of
the
Funds
pursuant
to
the
RIM
Agreement,
with
the
actual
allocation
of
Fund
assets
among
Money
Manager
strategies
and
RIM
being
determined
from
time
to
time
by
the
RIM
portfolio
manager(s).
RIM
utilizes
quantitative
and/or
rules-based
processes
and
qualitative
analysis
to
assess
Fund
characteristics
and
invests
in
securities
and
instruments
which
provide
the
desired
exposures
(such
as
low
volatility,
momentum,
value,
growth,
quality,
capitalization
size,
industry,
sector,
region,
currency,
credit
or
mortgage
exposure,
country
risk,
yield
curve
positioning
or
interest
rates).
For
example,
RIM
may
utilize
tools
such
as
“optimization,”
which
involves
the
analysis
of
tradeoffs
between
various
risk
and
return
factors
as
well
as
turnover
and
transaction
costs,
in
order
to
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
161
estimate
optimal
portfolio
positioning.
RIM
may
use
strategies
based
on
indexes,
including
optimized
index
sampling
(strategies
that
seek
to
purchase
a
sampling
of
securities
using
optimization
and
risk
models)
and/or
index
replication.
For
certain
Funds,
RIM
may
invest
in
derivative
instruments
and
may
use
derivatives
to
take
both
long
and
short
positions.
RIM’s
direct
management
of
assets
for
these
purposes
is
hereinafter
referred
to
as
the
“Direct
Management
Services.”
While
no
new
direct
management
strategies
were
implemented
in
2020,
the
Board
has
been
advised
that,
where
appropriate
in
its
judgment,
RIM
may
continue
exploring
the
possible
addition
of
new
or
expansion
of
existing
Direct
Management
Services.
Therefore,
larger
portions
of
certain
Funds
may
be
managed
directly
by
RIM
pursuant
to
the
Direct
Management
Services.
According
to
RIM,
its
portfolio
managers
combine
Money
Manager
strategies
and
RIM’s
Direct
Management
Services
for
the
Funds
and
precisely
align
Fund
exposures
with
RIM’s
preferred
positioning.
RIM’s
Direct
Management
Services
are
customized
portfolios
directly
managed
by
RIM
for
use
within
the
total
portfolio
of
a
Fund.
These
strategies
are
used
in
conjunction
with
allocations
to
Money
Manager
strategies
to
fully
reflect
RIM’s
strategic
and
dynamic
insights
with
integrated
liquidity
and
risk
management.
The
Board
considered
that
RIM
is
not
required
to
pay
Money
Manager
Fees
to
any
Money
Managers
with
respect
to
assets
for
which
it
provides
Direct
Management
Services
and
that
the
profits
derived
by
RIM
generally
and
from
the
Funds
consequently
may
be
increased,
although
RIM
noted
that
it
may
incur
additional
costs
in
providing
Direct
Management
Services.
RIM
advised
the
Board
that
allocations,
or
increased
allocations,
of
Fund
assets
to
Direct
Management
Services,
together
with
Money
Manager
selection,
allocations
among
Money
Manager
strategies,
renegotiation
of
Money
Manager
Fees
and
changes
in
existing
Money
Manager
assignments
from
discretionary
to
non-discretionary
assignments
where
there
is
a
related
Money
Manager
Fee
reduction
may
reduce
its
costs
of
providing
investment
advisory
services
to
the
Funds,
which
would
benefit
RIM.
The
Board
considered
RIM’s
advice
that
any
such
benefit,
including
any
increased
profits
to
RIM,
ultimately
may
be
partially
offset
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Funds
and
any
costs
of
incremental
investments
or
increased
cost
allocations
that
RIM
may
incur
to
support
Direct
Management
Services.
The
Board
also
considered
information
provided
by
RIM
as
to
the
potential
benefits
of
the
Direct
Management
Services
to
the
Funds;
and
the
fact
that
the
aggregate
Advisory
Fees
paid
by
the
Funds
are
not
increased
as
a
result
of
RIM’s
direct
management
of
Fund
assets
as
part
of
the
Direct
Management
Services
or
otherwise.
The
Board
noted
that
changes
in
the
allocation
of
assets
among
Money
Manager
strategies
or
to
Direct
Management
Services
may
result
directly
in
higher
related
costs
to
affected
Funds,
including
higher
brokerage
commissions
and
other
transaction
costs,
a
portion
of
which
is
paid
to
RIM’s
affiliated
broker
in
connection
with
execution
of
portfolio
transactions
in
connection
with
such
changes.
The
Agreement
Evaluation
Information
outlined
various
changes
that
have
been
implemented
in
the
investment
program
for
the
Funds
in
recent
years,
and
described
additional
current
and
potential
changes,
and
the
impact
of
such
changes,
to
the
investment
advisory
services
provided
to
the
Funds
by
RIM,
which
the
Trustees
took
into
account
in
their
contract
renewal
deliberations,
including
the
following:
•
RIM
advised
the
Board
that
in
2019
and
2020
it
reviewed
certain
key
tenets
of
its
investment
approach
and
took
certain
measures
to
assess
potential
steps
to
enhance
the
process
with
the
goal
to
improve
risk
adjusted
performance
over
a
market
cycle.
•
The
Direct
Management
Services
described
above.
•
Most
discretionary
equity
Money
Manager
assignments
were
converted
to
non-discretionary
assignments,
thereby
implementing
emulation
for
all
but
one
Money
Manager
equity
assignments.
The
Board
considered
the
potential
impacts
described
in
the
Agreement
Evaluation
Information,
both
positive
and
negative,
on
the
Funds
of
emulation.
RIM
noted
that,
in
implementing
emulation
for
Funds,
it
assumes
various
risks,
including
trade
error
risk
as
it
takes
over
responsibility
for
trading.
RIM
generally
effects
Fund
portfolio
transactions
through
an
affiliated
broker
that
receives
commissions
for
effecting
a
portion
of
these
transactions.
According
to
RIM,
the
Funds
pay
the
same
commission
rates
regardless
of
whether
the
affiliate
receives
any
portion
of
the
commission.
•
RIM
advised
the
Board
that,
over
the
last
several
years,
it
had
reduced
the
number
of
Money
Managers
for
certain
Funds
in
part
to
seek
more
concentrated
return
drivers.
RIM
also
advised
the
Board
that
allocations
to
Direct
Management
Services
for
certain
Funds
were
increased
in
2019
to
accommodate
the
need
for
additional
overall
portfolio
exposure
management
that
may
arise
from
more
concentrated
Money
Manager
lineups.
Additionally,
RIM
advised
the
Board
that,
in
order
to
preserve
flexibility
and
to
manage
risks
and
address
the
volatility
associated
with
Funds
having
manager
lineups
with
fewer
Money
Managers,
and
consistent
with
the
terms
of
the
manager-of-managers
exemptive
order,
in
2019
RIM
created
Money
Manager
“bench”
lineups
for
certain
Funds,
whereby
those
Funds
have
Board-approved
portfolio
management
contracts
with
Money
Managers
that
are
not
funded
(i.e.,
have
an
asset
allocation
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
162
Basis
for
Approval
of
Investment
Advisory
Agreement
of
zero).
In
the
Agreement
Evaluation
Information,
RIM
advised
the
Board
that
the
opportunity
to
decrease
a
Money
Manager’s
allocation
to
zero,
but
not
terminate
the
Money
Manager,
allows
RIM
to
potentially
realize
gains
from
strategies
that
may
have
been
overly
rewarded
in
the
marketplace
over
the
short
to
medium
term,
or
provide
the
opportunity
to
retain
capacity
with
a
Money
Manager
that
may
otherwise
be
closed
to
new
business.
The
Board
noted
that
RIM
does
not
believe
there
are
any
detriments
to
the
Funds
or
RIM
from
the
use
of
a
manager
bench.
RIM
advised
the
Board
that,
going
forward,
RIM
may
add
managers
to
a
Fund
with
an
existing
manager
bench
or
create
manager
bench
lineups
for
additional
Funds.
•
RIM
has
renegotiated
fees
with
certain
Money
Managers
to
lower
levels
and
advised
the
Board
that
it
will
continue
to
assess
opportunities
for
Money
Manager
Fee
reductions
in
the
future.
RIM
advised
the
Board
that
it
has
not
experienced
and
does
not
expect,
any
diminution
in
the
nature,
scope
or
quality
of
services
provided
by
Money
Managers
as
a
result
of
renegotiated
manager
fees.
Because
Money
Manager
Fees
are
paid
by
RIM
out
of
its
Advisory
Fee
from
the
Funds,
the
foregoing
may
benefit
RIM
in
the
form
of
savings
to
RIM
from
reduced
Money
Manager
Fees
as
a
negotiated
manager
fee
reduction
may
increase
RIM’s
profitability
with
respect
to
the
subject
Fund.
RIM
noted
that
such
benefits
may
be
offset
partially
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Funds,
and
any
costs
of
incremental
investments
or
increased
cost
allocations
that
RIM
may
incur
to
support
Direct
Management
Services.
In
evaluating
the
Funds’
Advisory
Fees,
the
Board
considered
that,
in
the
Agreement
Evaluation
Information
and
at
past
meetings,
RIM
noted
differences
between
the
investment
strategies
of
certain
Funds
and
their
respective
Comparable
Funds
in
pursuing
their
investment
objectives.
The
Third-Party
Information
included,
among
other
things,
comparisons
of
the
Funds’
Advisory
Fees
with
the
investment
advisory
fees
of
their
Comparable
Funds
on
an
actual
basis
(i.e.,
giving
effect
to
any
fee
waivers
implemented
by
RIM
with
respect
to
a
Fund
and
by
the
managers
of
such
Fund’s
Comparable
Funds).
The
Third-Party
Information,
among
other
things,
showed
that
the
RIF
U.S.
Strategic
Equity
Fund,
RIF
U.S.
Small
Cap
Equity
Fund,
RIF
International
Developed
Markets
Fund
and
RIF
Strategic
Bond
Fund
each
had
an
Advisory
Fee
which,
compared
with
the
investment
advisory
fees
of
its
respective
Comparable
Funds
on
an
actual
basis,
was
ranked
in
the
fifth
quintile
of
its
Expense
Universe
for
that
expense
component.
The
Advisory
Fee
for
the
RIF
Global
Real
Estate
Securities
Fund
ranked
in
the
fourth
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
funds
with
the
lowest
investment
advisory
fees
of
its
comparable
Fund
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
investment
advisory
fees
among
the
Expense
Universe
funds.
The
comparisons
were
based
upon
the
latest
fiscal
years
for
the
Expense
Universe
funds.
The
Board
considered
RIM’s
explanation
of
the
reasons
for
each
Fund’s
actual
Advisory
Fee
rankings.
RIM
expressed
its
belief
that
each
Fund’s
Advisory
Fee
was
fair
and
reasonable
notwithstanding
the
Third-Party
Information
comparisons
based
on,
and
as
discussed
in,
the
Agreement
Evaluation
Information.
Among
other
things,
RIM
noted
that
meaningful
comparisons
of
investment
advisory
fees
between
funds
affiliated
with
insurance
companies
issuing
variable
annuity
and
life
insurance
policies
and
non-affiliated
funds,
such
as
the
Funds,
are
difficult
as
insurance
companies
may
allocate
fees
between
the
insurance
contracts
and
their
underlying
funds.
The
Board
considered
that,
after
reviewing
a
request
from
the
Board,
RIM
agreed
to
implement
voluntary
Advisory
Fee
waivers
in
June
2021
for
the
RIF
U.S.
Small
Cap
Equity
Fund
and
RIF
International
Developed
Markets
Fund
that
will
reduce
each
such
Fund’s
Advisory
Fees
and,
while
in
effect,
would
have
a
beneficial
effect
on
comparisons
of
each
such
Fund’s
Advisory
Fees
relative
to
the
investment
advisory
fees
of
its
Comparable
Funds
in
the
Expense
Universe.
The
Board
also
noted
that
the
total
expenses
for
the
RIF
Strategic
Bond
Fund
ranked
in
the
third
quintile
of
its
Expense
Universe,
the
total
expenses
for
the
RIF
Global
Real
Estate
Securities
Fund
ranked
in
the
second
quintile
of
its
Expense
Universe,
and
the
total
expenses
for
the
RIF
U.S.
Strategic
Equity
Fund,
RIF
U.S.
Small
Cap
Equity
Fund
and
RIF
International
Developed
Markets
Fund
had
a
small
variance
to
the
third
quintile
of
its
Expense
Universe.
The
Board
determined
that
it
would
continue
to
monitor
the
Funds’
Advisory
Fees
against
the
Funds’
Comparable
Funds’
investment
advisory
fees.
In
discussing
the
Funds’
Advisory
Fees
generally,
RIM
noted,
among
other
things,
that
its
Advisory
Fees
for
the
Funds
encompass
services
that
are
typical
to
services
provided
by
investment
advisers
to
the
Funds’
Comparable
Funds,
as
well
as
unique
services
that
are
distinctly
different
from
those
provided
by
investment
advisers
to
the
Funds’
Comparable
Funds,
such
as
cash
equitization
and
transition
management
efforts
that
enable
efficient
and
cost-effective
asset
transition
events.
RIM
also
advised
the
Board
that
while
its
pre-tax
profit
margins
from
its
relationships
with
the
Funds
increased
slightly
in
2020,
RIM’s
pre-tax
profit
margins
in
providing
investment
advisory
services
to
the
Funds
ranked
below
the
median
of
the
operating
profit
margins
of
public
investment
management
company
peers
based
on
a
survey
conducted
in
2019.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
163
RIM
has
expressed
its
view
that
Advisory
Fees
should
also
be
considered
in
the
context
of
a
Fund’s
total
expense
ratio
to
obtain
a
complete
picture.
The
Board
considers
each
Fund’s
Advisory
Fee
on
both
a
standalone
basis
and
in
the
context
of
the
Fund’s
total
expense
ratio.
The
Board
has
engaged,
and
continues
to
engage,
in
discussions
with
RIM
to
identify
opportunities
for
improving
the
total
expense
comparisons
for
certain
Funds
relative
to
their
respective
Comparable
Funds
through
Advisory
Fee
waivers
or
expense
caps.
Based
upon
information
provided
by
RIM,
the
Board
considered
for
each
Fund
whether
economies
of
scale
have
been
realized
and
whether
the
Advisory
Fee
for
such
Fund
appropriately
reflects
or
should
be
revised
to
reflect
any
such
economies.
The
Board
considered,
among
other
things,
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Funds
as
well
as
net
Fund
redemptions
or
purchases
in
recent
years.
The
Funds
are
distributed
exclusively
through
variable
annuity
and
variable
life
insurance
contracts
issued
by
insurance
companies.
Currently,
the
Funds
are
made
available
to
holders
of
such
insurance
policies
(“Insurance
Contract
Holders”)
by
a
few
insurance
companies.
The
Funds
are
primarily
distributed
through,
and
their
assets
are
primarily
attributed
to,
The
Northwestern
Mutual
Life
Insurance
Company
(“Northwestern
Mutual”).
The
Funds
continue
to
experience
outflows;
however,
RIM
advised
the
Board
there
is
regular
contact
with
Northwestern
Mutual
in
order
to
maintain
product
availability
and
continue
efforts
to
grow
the
product
line.
RIM
expressed
its
belief
that
Northwestern
Mutual
is
still
committed
to
the
Funds.
However,
the
Board
has
received
no
direct
assurances
in
this
regard
from
Northwestern
Mutual.
If
Northwestern
Mutual
were
to
discontinue
its
participation
in
the
Funds,
the
Board
considered
that
it
is
unlikely
that
the
Funds
would
remain
viable.
RIM
previously
expressed
its
belief
that
the
Funds
will
remain
viable
in
the
near
term,
and
the
Board
was
not
advised
of
any
change
in
RIM’s
belief
in
this
regard.
The
Board
considered,
among
other
things,
the
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
variable
annuity
and
variable
life
insurance
policyholders.
The
Board
also
considered
the
fees
payable
to
RIM
or
its
affiliates
by
Other
RIM
Funds
and
institutional
clients
with
investment
objectives
similar
to
those
of
the
Funds.
The
Trustees
considered
the
differences
in
the
nature
and
scope
of
services
RIM
provides
to
institutional
clients
and
the
Funds.
RIM
explained,
among
other
things,
that
institutional
products
have
fewer
compliance,
administrative,
client
servicing/communication
and
other
needs
than
the
Funds.
RIM
also
noted
that
due
to
the
number
and
nature
of
investors,
along
with
their
varied
needs
for
liquidity,
there
is
more
portfolio
liquidity
management
and
cash
flow
management
required
for
the
Funds
than
for
RIM’s
institutional
clients,
where
assets
are
relatively
stable.
In
addition,
RIM
noted
that
the
Funds
are
subject
to
heightened
regulatory
requirements
relative
to
institutional
clients,
including
new
rules
recently
adopted
by
the
SEC.
Accordingly,
the
Trustees
concluded
that
the
services
provided
to
the
Funds
are
sufficiently
different
from
the
services
provided
to
such
institutional
clients
that
comparisons
are
not
probative
and
should
not
be
given
significant
weight.
The
Board
considered
RIM’s
commitment
to
conduct
a
holistic
review
of
the
Advisory
Fees
and
certain
other
fees
of
the
Funds
and
to
provide
information
resulting
from
such
review
to
the
Board
in
late
2021.
With
respect
to
the
Funds’
total
expenses,
the
Third-Party
Information
showed
that
the
total
expenses
for
each
of
the
RIF
U.S.
Strategic
Equity
Fund,
RIF
U.S.
Small
Cap
Equity
Fund
and
RIF
International
Developed
Markets
Fund
were
ranked
in
the
fourth
quintile
of
its
Expense
Universe,
the
total
expenses
for
the
RIF
Strategic
Bond
Fund
were
ranked
in
the
third
quintile
of
its
Expense
Universe,
and
the
total
expenses
of
the
RIF
Global
Real
Estate
Securities
Fund
were
ranked
in
the
second
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
the
funds
with
the
lowest
total
expenses
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
total
expenses
among
the
Expense
Universe
funds.
With
respect
to
each
Fund
with
total
expenses
ranked
in
the
fourth
quintile
of
its
Expense
Universe,
RIM
expressed
its
belief
that
the
Fund’s
total
expense
ratio
was
fair
and
reasonable
notwithstanding
the
Third-Party
Information
comparisons
based
on,
and
as
discussed
in,
the
Agreement
Evaluation
Information.
The
Board
considered
that
the
total
expenses
for
each
of
the
RIF
U.S.
Strategic
Equity
Fund,
RIF
U.S.
Small
Cap
Equity
Fund
and
RIF
International
Developed
Markets
Fund
had
a
small
variance
to
the
third
quintile
of
its
Expense
Universe.
The
Board
also
considered
that,
after
reviewing
a
request
from
the
Board,
RIM
agreed
to
implement
voluntary
Advisory
Fee
waivers
in
June
2021
for
the
RIF
U.S.
Small
Cap
Equity
Fund
and
RIF
International
Developed
Markets
Fund
that
will
reduce
each
such
Fund’s
total
expenses.
The
Board
noted
that,
while
in
effect,
the
Advisory
Fee
waivers
would
have
a
beneficial
effect
on
comparisons
of
each
Fund’s
total
expenses
relative
to
the
total
expenses
of
its
Comparable
Funds
in
the
Expense
Universe.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
164
Basis
for
Approval
of
Investment
Advisory
Agreement
On
the
basis
of
the
Agreement
Evaluation
Information,
and
other
information
previously
received
by
the
Board
from
RIM
during
the
course
of
the
year
and
prior
years,
or
presented
at
or
in
connection
with
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting
by
RIM,
including
RIM’s
commitment
to
conduct
a
holistic
review
of
Funds’
Advisory
Fees
and
certain
other
fees,
the
Board,
in
respect
of
each
Fund,
after
giving
effect
to
any
applicable
fee
waivers
and
in
light
of
other
factors
discussed
above:
(1)
found
the
Advisory
Fee
charged
by
RIM
was
acceptable
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
advisory
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
and
to
provide
continuity
of
investment
advisory
and
other
services
by
RIM
to
the
Fund;
(2)
either
found
that
the
relative
expense
ratio
of
the
Fund
was
comparable
to
those
of
its
Comparable
Funds
or
took
into
account
the
factors
noted
above
in
considering
the
relative
expense
ratio
as
compared
to
those
of
its
Comparable
Funds;
(3)
found
that
the
other
benefits
and
fees
received
by
RIM
or
its
affiliates
from
the
Fund
identified
in
the
Agreement
Evaluation
Information
were
not
considered
to
be
excessive;
(4)
found
that
RIM’s
reported
profitability
with
respect
to
the
Fund
was
not
considered
to
be
excessive
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided
by
RIM
and
applicable
judicial
and
regulatory
guidance;
and
(5)
found
that
the
Advisory
Fee
charged
by
RIM
appropriately
reflects
any
economies
of
scale
realized
by
such
Fund
in
light
of
various
factors,
including
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
Insurance
Contract
Holders;
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Funds;
and
RIM’s
advice
that
it
does
not
believe
it
will
experience
meaningful
economies
of
scale.
The
Board
concluded
that,
under
the
circumstances
and
based
on
RIM’s
performance
information
and
reviews
for
each
Fund,
the
performance
of
each
of
the
Funds
is
consistent
with
the
continuation
of
the
RIM
Agreement.
The
Board
noted
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
In
assessing
the
performance
of
Funds,
the
Board
focused
upon
each
Fund’s
performance
for
the
3-year
period
ended
December
31,
2020
as
most
relevant
but
also
considered
Fund
performance
for
the
1-
and
5-year
periods
ended
on
such
date.
In
reviewing
the
Funds’
performance
generally,
the
Board
took
into
consideration
various
steps
taken
by
RIM
in
the
past
two
years
to
enhance
the
performance
of
certain
Funds,
including
changes
in
Money
Managers
or
their
allocations,
and
RIM’s
implementation
or
expansion
of
its
Direct
Management
Services
and
other
strategies,
which
may
not
yet
be
fully
reflected
in
Fund
investment
results.
With
respect
to
the
RIF
U.S.
Small
Cap
Equity
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
for
the
3-
and
5-year
periods
ended
December
31,
2020
was
ranked
in
the
fourth
quintile
of
its
Performance
Universe,
and
the
Fund’s
performance
for
the
1-year
period
ended
on
such
date
was
in
the
third
quintile
of
its
Performance
Universe.
According
to
RIM,
factors
contributing
to
the
Fund’s
relative
underperformance
during
the
3-year
period
included
RIM’s
strategic
belief
and
tactical
preference
for
value
compared
to
the
Fund’s
Comparable
Funds,
exposure
to
lower
market
capitalization
stocks,
and
an
overweight
to
the
energy
sector.
RIM
noted
that,
relative
to
peers,
the
Fund
continues
to
be
positioned
toward
value
and
lower
size
factors
in
recognition
of
RIM’s
views
of
current
valuation
opportunities
and
cycle
considerations.
With
respect
to
the
RIF
International
Developed
Markets
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
for
the
1-
and
3-year
periods
ended
December
31,
2020
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe,
and
the
Fund’s
performance
for
the
5-year
period
ended
on
such
date
was
ranked
in
the
fourth
quintile
of
its
Performance
Universe.
For
the
3-year
period,
RIM
noted
that
its
strategic
belief
and
tactical
preference
for
value
compared
to
the
Fund’s
Comparable
Funds
detracted
from
performance,
as
did
an
underweight
to
Japan
and
an
overweight
to
the
financials
sector
relative
to
the
Comparable
Funds.
RIM
noted
that
while
valuation
spreads
between
value
and
growth
have
tightened,
the
spreads
remain
at
historically
wide
levels,
which
RIM
believes
is
not
sustainable,
and
that
RIM
continues
to
favor
valuation
sensitive
Money
Managers
in
its
tactical
positioning.
The
Third-Party
Information
also
showed
that
the
performance
of
the
RIF
U.S.
Strategic
Equity
Fund,
RIF
Strategic
Bond
Fund
and
RIF
Global
Real
Estate
Securities
Fund
was
each
ranked
in
the
third
quintile
of
its
Performance
Universe
for
the
3-year
period
ended
December
31,
2020.
In
evaluating
performance,
the
Board
considered
each
Fund’s
performance
not
only
relative
to
its
Comparable
Funds,
but
also
in
absolute
terms
and
relative
to
its
benchmark.
The
Board
considered
the
Funds’
performance
relative
to
their
benchmarks
in
light
of
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
For
the
1-,
3-
and
5-year
periods
ended
December
31,
2020,
the
RIF
Strategic
Bond
Fund
and
RIF
Global
Real
Estate
Securities
Fund
outperformed
their
respective
benchmarks;
and
for
the
1-year
period
ended
December
31,
2020,
the
RIF
U.S.
Strategic
Equity
Fund
outperformed
its
benchmark.
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
165
The
Board
also
considered
the
Money
Manager
changes
that
have
been
made
during
the
past
year
and
that
the
performance
of
Money
Managers
continues
to
impact
Fund
performance
for
periods
prior
and
subsequent
to
their
termination.
After
considering
the
foregoing
and
other
relevant
factors,
including
factors
described
above,
the
Board
concluded
in
respect
of
each
Fund
that
continuation
of
the
RIM
Agreement
would
be
in
the
best
interest
of
such
Fund
and
its
shareholders
and
voted
to
approve
the
continuation
of
the
RIM
Agreement.
At
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting,
with
respect
to
the
evaluation
of
the
terms
of
portfolio
management
contracts
with
Money
Managers,
the
Board
received
and
considered
information
from
RIM
reporting,
among
other
things,
for
each
Money
Manager,
the
Money
Manager’s
performance
over
various
periods;
RIM’s
assessment
of
the
performance
of
each
Money
Manager;
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Funds’
underwriter;
and
RIM’s
recommendation
to
retain
each
discretionary
or
non-discretionary
Money
Manager
on
the
current
terms
and
conditions,
including
at
the
current
fee
rate.
The
Board
received
reports
during
the
course
of
the
year
from
the
Funds’
CCO
regarding
her
assessments
of
Money
Manager
compliance
programs
and
any
compliance
issues.
RIM
did
not
identify
any
benefits
from
the
Funds’
portfolio
transactions
received
by
Money
Managers
or
their
affiliates
other
than
potential
benefits
from
soft
dollar
arrangements
or
commissions
paid
to
any
affiliated
broker-dealer
through
which
a
discretionary
Money
Manager
may
execute
trades.
RIM
recommended
that
each
of
the
Money
Managers
be
retained
for
its
current
discretionary
or
non-discretionary
assignment
at
its
current
fee
rate.
In
doing
so,
RIM,
as
it
has
in
the
past,
advised
the
Board
that
it
does
not
regard
Money
Manager
profitability
or
economies
of
scale
as
relevant
to
its
evaluation
of
the
portfolio
management
contracts
with
Money
Managers
because
the
willingness
of
Money
Managers
to
serve
in
such
capacity
depends
upon
arm’s-length
negotiations
with
RIM;
RIM
is
aware
of
the
standard
fee
rates
charged
by
Money
Managers
to
other
clients;
and
RIM
believes
that
the
fees
agreed
upon
with
Money
Managers
are
reasonable
and
appropriate
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered.
The
Board
accepted
RIM’s
explanation
of
the
relevance
of
Money
Manager
profitability
in
light
of
RIM’s
belief
that
such
fees
are
reasonable;
the
Board’s
findings
as
to
the
acceptability
of
the
Advisory
Fee
paid
by
each
Fund;
and
the
fact
that
each
Money
Manager’s
fee
is
paid
by
RIM.
The
May
24-25
quarterly
Board
materials
were
provided
prior
to
the
Agreement
Evaluation
Meeting
and
those
materials
contained
proposals
by
RIM
related
to
(1)
the
appointment
of
a
new
Money
Manager
and
(2)
an
amendment
to
a
portfolio
management
contract
to
reflect
Money
Manager
Fee
reductions.
Based
upon
RIM’s
recommendations,
together
with
relevant
Agreement
Evaluation
Information,
the
Board
concluded
that
the
fees
paid
to
the
Money
Managers
of
each
Fund
are
acceptable
in
light
of
RIM’s
assessment
of
quality
of
the
investment
advisory
services
provided
and
that
continuation
of
the
portfolio
management
contract
with
each
Money
Manager
of
each
Fund
would
be
in
the
best
interests
of
the
Fund
and
its
shareholders.
*
*
*
This
discussion
is
not
intended
to
include
all
of
the
factors
and
information
considered
by
the
Board.
In
their
deliberations,
the
Trustees
did
not
identify
any
particular
information
as
to
the
RIM
Agreement
or,
other
than
RIM’s
recommendation,
the
portfolio
management
contract
with
any
Money
Manager
that
was
all-important
or
controlling,
except,
in
the
case
of
the
RIM
Agreement,
the
need
to
continue
the
managers-of-managers
structure
of
the
Funds
and
each
Trustee
attributed
different
weights
to
the
various
factors
considered.
The
Trustees
evaluated
all
information
available
to
them
on
a
Fund-by-Fund
basis
and
their
determinations
were
made
in
respect
of
each
Fund.
Quarterly
Approval
of
Money
Manager
Contracts
The
Board
received
the
following
proposals
from
RIM
(i)
at
the
quarterly
Board
meeting
held
on
February
23,
2021:
to
approve
new
portfolio
management
contracts
for
(a)
the
International
Developed
Markets
Fund
resulting
from
a
pending
change
of
control
for
an
existing
Money
Manager
and
(b)
the
U.S.
Small
Cap
Equity
Fund
resulting
from
a
pending
change
of
control
for
an
existing
Money
Manager
and
(ii)
at
the
quarterly
Board
meeting
held
on
May
25,
2021:
to
approve
a
new
portfolio
management
contract
for
the
U.S.
Small
Cap
Equity
Fund
with
respect
to
a
new
Money
Manager.
With
respect
to
pending
changes
of
control
of
(i)
an
existing
Money
Manager
of
the
International
Developed
Markets
Fund
and
(ii)
an
existing
Money
Manager
of
the
U.S.
Small
Cap
Equity
Fund:
the
Trustees
approved
the
terms
of
each
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;
RIM’s
recommendation
and
research
Russell
Investment
Funds
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
166
Basis
for
Approval
of
Investment
Advisory
Agreement
ranking
assigned
to
the
Money
Manager;
information
provided
by
RIM
that
there
are
no
expected
changes
to
the
Money
Manager’s
investment
process,
personnel,
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
portfolio
management
contracts
with
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
Managers
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.
With
respect
to
the
portfolio
management
contracts
for
a
new
Money
Manager
for
the
U.S.
Small
Cap
Equity
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.
The
Trustees’
approvals
also
reflected
their
findings
at
prior
meetings,
including
the
Agreement
Evaluation
Meeting,
in
connection
with
their
evaluation
and
approval
of
the
Funds’
existing
investment
advisory
agreements
with
RIM
and
portfolio
management
contracts
with
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
Managers
and
the
reasonableness
of
the
aggregate
investment
advisory
fees
paid
by
the
Funds,
as
well
as
the
fact
that
the
aggregate
investment
advisory
fees
paid
by
the
Funds
would
not
increase
or
decrease
as
a
result
of
the
implementation
of
the
proposed
new
portfolio
management
contracts
because
the
Money
Managers’
investment
advisory
fees
are
paid
by
RIM.
Russell
Investment
Funds
Liquidity
Risk
Management
Program
—
(Unaudited)
Liquidity
Risk
Management
Program
167
The
Funds
have
adopted
and
implemented
a
liquidity
risk
management
program
(the
“Program”)
in
accordance
with
Rule
22e-4
of
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”).
The
Program
seeks
to
assess,
manage,
and
review
each
Fund’s
“liquidity
risk.”
For
purposes
of
the
Liquidity
Rule,
“liquidity
risk”
is
defined
as
the
risk
that
a
Fund
is
unable
to
satisfy
redemption
requests
without
significantly
diluting
remaining
investors’
interests
in
the
Fund.
The
Program
is
comprised
of
various
components
designed
to
support
the
assessment
and/or
management
of
liquidity
risk,
including:
1.
Assessment,
management
and
periodic
review
of
each
Fund’s
liquidity
risk;
2.
Classification
of
each
Fund’s
investments
into
four
categories
or
liquidity
buckets
based
on
how
long
it
would
take
to
convert
the
investment
to
cash
(the
“Classification
Regime”);
3.
Establishment
and
annual
review
of
a
highly
liquid
investment
minimum
(“HLIM”)
for
each
Fund
that
does
not
invest
primarily
in
“highly
liquid”
investments
(as
defined
under
the
Liquidity
Rule);
4.
Requirements
applicable
to
a
Fund’s
holdings
of
“illiquid
investments”
(as
defined
under
the
Liquidity
Rule);
and
5.
Implementation
of
redemption
in-kind
policies
and
procedures.
The
Board
of
Trustees
of
RIF
(the
“Board”)
appointed
RIM,
the
Funds’
investment
adviser,
as
the
Program
administrator
(the
“Program
Administrator”).
The
Program
Administrator
has
delegated
responsibility
to
implement
and
administer
the
Program,
subject
to
oversight
by
the
Program
Administrator,
to
one
or
more
RIM
associates
(the
“Program
Administrator
Delegate”).
The
Program
Administrator,
through
the
Program
Administrator
Delegate,
monitors
the
adequacy
and
effectiveness
of
the
Program’s
implementation
and
on
a
periodic
basis
assesses
each
Fund’s
liquidity
risk
based
on
a
variety
of
factors.
At
the
May
24,
2021
meeting
of
the
Regulatory
and
Investment
Compliance
Committee
of
the
Board
(the
“Meeting”),
the
Program
Administrator
reviewed
with
all
members
of
the
Board
the
Program
Administrator’s
annual
written
report
(the
“Report”)
addressing
the
Program’s
operation
as
well
as
the
adequacy
and
effectiveness
of
its
implementation
for
the
period
from
January
1,
2020
through
December
31,
2020
(the
“Program
Reporting
Period”).
The
Report
summarized
the
factors
considered
by
the
Program
Administrator
in
assessing
whether
the
Program
has
been
adequately
and
effectively
implemented
with
respect
to
each
Fund.
Such
information
and
factors
included,
among
other
things:
(1)
the
framework
used
to
assess,
manage,
and
periodically
review
each
Fund’s
liquidity
risk
and
the
results
of
this
assessment;
(2)
the
methodology
and
inputs
used
in
connection
with
the
Classification
Regime,
including
circumstances
in
which
the
Program
Administrator
adjusted
a
preliminary
classification
provided
by
the
third-party
service
provider
engaged
to
assist
in
preparing
classifications
of
portfolio
investments
(the
“Service
Provider”)
or
adjusted
the
inputs
used
by
the
Service
Provider
to
generate
preliminary
classifications;
(3)
whether
a
new
HLIM
should
be
established,
or
an
existing
HLIM
continued
or
modified,
for
each
Fund
and
the
procedures
for
monitoring
for
HLIM
compliance;
(4)
whether
a
Fund
invested
more
than
15%
of
its
assets
in
illiquid
investments
and
the
procedures
for
monitoring
for
this
limit;
(5)
specific
liquidity
events
arising
during
the
Program
Reporting
Period,
including
the
impact
on
Fund
liquidity
caused
by
extended
non-U.S.
market
closures;
(6)
specific
information
relating
to
the
Program’s
operation
in
light
of
the
COVID-19
crisis,
including
with
respect
to
the
impact
the
COVID-19
crisis
on
the
Classification
Regime
and
HLIM
compliance;
and
(7)
actions
taken
by
the
Program
Administrator
and
Program
Administrator
Delegate
during
the
Program
Reporting
Period
to
manage
Fund
liquidity
and
liquidity
risk.
There
were
no
changes
to
the
Funds’
written
policies
and
procedures
related
to
the
Program
during
the
Program
Reporting
Period
but
the
Board
was
informed
of
certain
clarifications
to
such
written
policies
and
procedures
that
would
be
implemented
following
the
Meeting.
Based
on
the
Program
Administrator’s
review
and
the
factors
set
forth
in
the
Report,
the
Report
concluded
that:
(1)
the
Program
continues
to
be
reasonably
designed
to
effectively
assess
and
manage
each
Fund’s
liquidity
risk;
(2)
each
Fund’s
liquidity
risk
continues
to
be
appropriate
in
light
of
the
Fund’s
investment
objective
and
strategies;
(3)
each
Fund’s
investment
strategies
continue
to
be
appropriate
for
an
open-ended
management
investment
company;
and
(4)
the
Program
has
been
adequately
and
effectively
implemented
with
respect
to
each
Fund,
including
the
establishment
and
operation
of
the
HLIM
for
applicable
Funds.
Russell
Investment
Funds
Shareholder
Requests
for
Additional
Information
—
June
30,
2021
(Unaudited)
168
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.
Each
year,
you
are
automatically
sent
an
updated
Prospectus.
Unless
you
specifically
request
paper
copies
of
the
annual
and
semiannual
reports
from
the
Funds
or
your
insurance
company,
you
will
be
notified
by
mail
each
time
the
annual
and
semiannual
reports
are
posted
and
provided
with
a
website
link
to
access
the
reports.
You
may
also
occasionally
receive
notifications
of
Prospectus
changes
and
proxy
statements
for
the
Funds.
To
reduce
expenses,
we
may
mail
only
one
copy
of
the
Funds’
prospectuses
and,
upon
request,
each
annual
and
semi-annual
report
to
those
addresses
shared
by
two
or
more
accounts.
If
you
wish
to
receive
individual
copies
of
these
documents,
please
contact
your
insurance
company.
Some
Insurance
Companies
may
offer
electronic
delivery
of
the
Funds’
prospectuses
and
annual
and
semi-annual
reports.
Please
contact
your
Insurance
Company
for
further
details.
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers
—
June
30,
2021
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
169
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
31
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
officers.
Furthermore,
each
Trustee
possesses
the
following
specific
attributes:
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.
Cahoon
has
had
experience
as
the
senior
financial
executive
of
other
investment
companies
and
their
investment
adviser
and
distributor,
as
well
as
a
certified
public
accountant
who
previously
provided
audit
services
in
the
financial
sector
at
a
multi-
national
accounting
firm;
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
Kristianne
Blake,
Born
January
22,
1954
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2000
Chairman
of
the
Audit
Committee
since
2021
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
duly
elected
and
qualified
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)
40
Lead
Independent
Director,
Avista
Corp.
(electric
utilities)
Until
May
2017,
Director,
Avista
Corp
(electric
utilities)
Michelle
L.
Cahoon,
Born
July
5,
1966
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2021
Appointed
until
successor
is
duly
elected
and
qualified
Retired
From
January
to
March
2019,
Consulting
Chief
Financial
Officer,
Driehaus
Capital
Management
LLC
(investment
adviser)
Until
2018,
Chief
Financial
Officer
and
Treasurer,
Driehaus
Capital
Management
LLC
and
Driehaus
Securities
LLC
(broker
dealer)
Until
2018,
Vice
President
and
Treasurer,
Driehaus
Mutual
Funds
(investment
company)
40
None
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2021
(Unaudited)
170
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)
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
Appointed
until
successor
is
duly
elected
and
qualified
Retired
40
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)
40
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
Raymond
P.
Tennison,
Jr.,
Born
December
21,
1955
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2000
Chairman
since
2021
Appointed
until
successor
is
duly
elected
and
qualified
Approved
annually
Retired
40
None
Jack
R.
Thompson,
Born
March
21,
1949
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2005
Vice
Chairman
since
2021
Chairman
of
the
Nominating
and
Governance
Committee
since
2021
Appointed
until
successor
is
duly
elected
and
qualified
Approved
annually
Appointed
until
successor
is
duly
elected
and
qualified
Retired
40
None
Russell
Investment
Funds
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2021
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
171
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
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
Kate
El-Hillow,
Born
August
17,
1974
1301
Second
Avenue,
18th
Floor,
Seattle
WA
98101
Chief
Investment
Officer
since
2021
Until
removed
by
Trustees
Until
2021,
Deputy
Chief
Investment
Officer,
Senior
Portfolio
Manager,
Head
of
Strategy
Selection
and
Head
of
Portfolio
Management
&
Risk,
Goldman
Sachs
Global
Chief
Investment
Officer,
Russell
Investments
Chief
Investment
Officer,
RIC
and
RIF
President,
RIM
Mary
Beth
R.
Albaneze,
Born
April
25,
1969
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Secretary
and
Chief
Legal
Officer
since
2010
Until
successor
is
chosen
and
qualified
by
Trustees
Associate
General
Counsel,
Russell
Investments
Secretary,
RIM,
RIFUS
and
RIFIS
Secretary
and
Chief
Legal
Officer,
RIC
and
RIF
Assistant
Secretary,
U.S.
One,
LLC
Russell
Investment
Funds
Adviser,
Money
Managers
and
Service
Providers
—
June
30,
2021
(Unaudited)
172
Adviser,
Money
Managers
and
Service
Providers
Independent
Trustees
Kristianne
Blake
Michelle
L.
Cahoon
Katherine
W.
Krysty
Julie
Dien
Ledoux
Raymond
P.
Tennison,
Jr.
Jack
R.
Thompson
Officers
Mark
E.
Swanson,
President,
Chief
Executive
Officer,
Treasurer,
Chief
Accounting
Officer
&
Chief
Financial
Officer
Cheryl
Wichers,
Chief
Compliance
Officer
Kate
El-Hillow,
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
021171
Office
of
Shareholder
Inquiries
1301
Second
Avenue
Seattle, WA
98101
(800)
787-7354
Legal
Counsel
Dechert
LLP
One
International
Place,
40th
Floor
100
Oliver
Street
Boston, MA
02110
Distributor
Russell
Investments
Financial
Services,
LLC
1301
Second
Avenue
Seattle, WA
98101
Independent
Registered
Public
Accounting
Firm
PricewaterhouseCoopers
LLP
1420
5th
Avenue,
Suite
2800
Seattle, WA
98101
Money
Managers
U.S.
Strategic
Equity
Fund
Brandywine
Global
Investment
Management,
LLC,
Philadelphia,
PA
HS
Management
Partners,
LLC,
New
York,
NY
Jackson
Square
Partners,
LLC,
San
Francisco,
CA
Jacobs
Levy
Equity
Management,
Inc., Florham
Park, NJ
U.S.
Small
Cap
Equity
Fund
Ancora
Advisors,
LLC,
Mayfield
Heights,
OH
BAMCO,
Inc.,
New
York,
NY
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
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
2021
SEMI-ANNUAL
REPORT
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
JUNE
30,
2021
FUND
Moderate
Strategy
Fund
Balanced
Strategy
Fund
Growth
Strategy
Fund
Equity
Growth
Strategy
Fund
Beginning
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
paper
copies
of
the
Funds’
annual
and
semi-annual
shareholder
reports
like
this
one
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
your
financial
professional
or
variable
annuity
provider.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
supported
by
your
financial
professional
or
variable
annuity
provider,
you
may
elect
to
receive
shareholder
reports
and
other
Fund
communications
electronically.
Please
contact
your
financial
professional
or
variable
annuity
provider
for
more
information.
You
may
elect
to
receive
all
future
shareholder
reports
in
paper
free
of
charge.
Please
contact
your
financial
professional
or
variable
annuity
provider
to
inform
them
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports.
Your
election
to
receive
reports
in
paper
will
apply
to
all
Russell
Investment
Funds
and
other
funds
you
hold
with
your
financial
professional
or
variable
annuity
provider.
Russell
Investment
Funds
Russell
Investment
Funds
is
a
series
investment
company
with
nine
different
investment
portfolios
referred
to
as
Funds.
These
financial
statements
report
on
four
of
these
Funds.
Page
Moderate
Strategy
Fund
3
Balanced
Strategy
Fund
13
Growth
Strategy
Fund
23
Equity
Growth
Strategy
Fund
33
Notes
to
Financial
Highlights
43
Notes
to
Financial
Statements
44
Basis
for
Approval
of
Investment
Advisory
Agreement
58
Liquidity
Risk
Management
Program
68
Shareholder
Requests
for
Additional
Information
69
Disclosure
of
Information
about
Fund
Trustees
and
Officers
70
Adviser
and
Service
Providers
73
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Semi-annual
Report
June
30,
2021
(Unaudited)
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,
Russell
Investments’
management
and
Hamilton
Lane
Incorporated.
Fund
objectives,
risks,
charges
and
expenses
should
be
carefully
considered
before
in-
vesting.
A
prospectus
containing
this
and
other
important
information
must
precede
or
accompany
this
material.
Please
read
the
prospectus
carefully
before
investing.
Securities
distributed
through
Russell
Investments
Financial
Services,
LLC,
member
FINRA
and
part
of
Russell
Investments.
Performance
quoted
represents
past
performance
and
does
not
guarantee
future
results.
The
investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Russell
Investment
Funds
Moderate
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
Moderate
Strategy
Fund
3
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2021
$
1,061
.30
$
1,024
.10
Expenses
Paid
During
Period*
$
0
.72
$
0
.70
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.14%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Moderate
Strategy
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
4
Moderate
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
100.1%
Alternative
-
3.0%
RIF
Global
Real
Estate
Securities
Fund
176,295
2,877
Domestic
Equities
-
13.5%
RIF
U.S.
Small
Cap
Equity
Fund
199,781
3,870
RIF
U.S.
Strategic
Equity
Fund
420,350
9,315
13,185
Fixed
Income
-
49.3%
RIC
Investment
Grade
Bond
Fund
Class
Y
617,559
13,710
RIC
Unconstrained
Total
Return
Fund
Class
Y
203,089
1,954
RIF
Strategic
Bond
Fund
3,037,772
32,321
47,985
International
Equities
-
24.4%
RIC
Emerging
Markets
Fund
Class
Y
83,327
1,953
RIC
Global
Equity
Fund
Class
Y
1,917,559
17,987
RIF
International
Developed
Markets
Fund
283,605
3,814
23,754
Multi-Asset
-
9.9%
RIC
Multi-Strategy
Income
Fund
Class
Y
877,148
9,605
Total
Investments
in
Affiliated
Funds
(cost
$87,351)
97,406
Total
Investments
-
100.1%
(identified
cost
$87,351)
97,406
Other
Assets
and
Liabilities,
Net
-
(0.1)%
(69)
Net
Assets
-
100.0%
97,337
Russell
Investment
Funds
Moderate
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
5
Amounts
in
thousands
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
$
1,165
$
—
$
—
$
(753)
Credit
default
swap
contracts
—
(408)
—
—
Foreign
currency
exchange
contracts
—
—
(26)
—
Total
$
1,165
$
(408)
$
(26)
$
(753)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(40)
$
—
$
—
$
81
Credit
default
swap
contracts
—
214
—
—
Foreign
currency
exchange
contracts
—
—
(26)
—
Total
$
(40)
$
214
$
(26)
$
81
For
further
disclosure
on
derivatives
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.
6
Moderate
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
87,351
Investments,
at
fair
value(>)
...........................................................................................................................................................
97,406
Receivables:
Investments
sold
................................................................................................................................................................
1
Prepaid
expenses
...........................................................................................................................................................................
1
Total
assets
.................................................................................................................................................
97,408
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
1
Accrued
fees
to
affiliates
....................................................................................................................................................
4
Other
accrued
expenses
.....................................................................................................................................................
66
Total
liabilities
.............................................................................................................................................
71
Net
Assets
............................................................................................................................................................
$
97,337
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
7
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
11,990
Shares
of
beneficial
interest
...........................................................................................................................................................
89
Additional
paid-in
capital
..............................................................................................................................................................
85,258
Net
Assets
............................................................................................................................................................
$
97,337
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.88
Net
assets
...............................................................................................................................................................................
$
97,337,339
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
8,944,728
Amounts
in
thousands
(>)
Investments
in
affiliated
funds
$
97,406
(#)
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.
8
Moderate
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distribution
from
affiliated
funds
......................................................................................................................................
$
731
Expenses
Advisory
fees
....................................................................................................................................................................
94
Administrative
fees
...........................................................................................................................................................
20
Custodian
fees
...................................................................................................................................................................
20
Transfer
agent
fees
............................................................................................................................................................
2
Professional
fees
...............................................................................................................................................................
21
Trustees’
fees
....................................................................................................................................................................
2
Printing
fees
......................................................................................................................................................................
11
Miscellaneous
...................................................................................................................................................................
3
Expenses
before
reductions
..............................................................................................................................................
173
Expense
reductions
...........................................................................................................................................................
(107)
Net
expenses
.................................................................................................................................................................................
66
Net
investment
income
(loss)
........................................................................................................................................................
665
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
2,60
5
Futures
contracts
..............................................................................................................................................................
412
Foreign
currency
exchange
contracts
................................................................................................................................
(26)
Credit
default
swap
contracts
............................................................................................................................................
(408)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
37
Net
realized
gain
(loss)
..................................................................................................................................................................
2,6
20
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
2,202
Futures
contracts
..............................................................................................................................................................
41
Foreign
currency
exchange
contracts
................................................................................................................................
(26)
Credit
default
swap
contracts
............................................................................................................................................
214
Foreign
currency-related
transactions
...............................................................................................................................
(28)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
2,403
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
5,02
3
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
5,68
8
Russell
Investment
Funds
Moderate
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Moderate
Strategy
Fund
9
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
665
$
1,525
Net
realized
gain
(loss)
......................................................................................................................
2,6
20
916
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
2,403
2,506
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
5,68
8
4,947
Distributions
To
shareholders
.................................................................................................................................
(2,063)
(1,871)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(2,063)
(1,871)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
914
(10,623)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
4,5
39
(7,547)
Net
Assets
Beginning
of
period
.................................................................................................................................
92,798
100,345
End
of
period
..........................................................................................................................................
$
97,33
7
$
92,798
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
550
$
5,87
8
725
$
6,880
Proceeds
from
reinvestment
of
distributions
196
2,06
3
196
1,871
Payments
for
shares
redeemed
(660)
(7,027)
(2,046)
(19,374)
Total
increase
(decrease)
86
$
914
(1,125)
$
(10,623)
Russell
Investment
Funds
Moderate
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
10
Moderate
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2021(1)
10.48
.07
.56
.63
(.13)
(.10)
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
11
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.23)
10.88
6.13
97,337
.37
.14
1.41
47
(.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.
12
Moderate
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
1
Administration
fees
3,411
Transfer
agent
fees
353
Trustee
fees
302
$
4,067
Fair
Value,
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Change
in
Unrealized
Gain
(Loss)
Fair
Value,
End
of
Period
Income
Distributions
Capital
Gains
Distributions
RIC
Commodity
Strategies
Fund
$
1,857
$
398
$
2,038
$
(231
)
$
14
$
—
$
379
$
—
RIF
Global
Real
Estate
Securities
Fund
—
2,907
171
7
134
2,877
—
—
RIF
U.S.
Small
Cap
Equity
Fund
6,587
372
4,408
1,001
318
3,870
13
—
RIF
U.S.
Strategic
Equity
Fund
6,426
2,736
721
86
788
9,315
19
—
RIC
Investment
Grade
Bond
Fund
10,677
3,712
545
(23
)
(111
)
13,710
79
—
RIC
Unconstrained
Total
Return
Fund
24,994
1,307
24,424
(63
)
140
1,954
57
—
RIF
Strategic
Bond
Fund
10,651
22,712
1,081
(36
)
75
32,321
59
37
RIC
Emerging
Markets
Fund
4,627
321
3,350
832
(477
)
1,953
—
—
RIC
Global
Equity
Fund
6,510
11,732
1,364
15
1,094
17,987
—
—
RIF
International
Developed
Markets
Fund
5,519
368
2,622
778
(229
)
3,814
69
—
RIC
Multi-Strategy
Income
Fund
10,901
880
2,871
239
456
9,605
56
—
U.S.
Cash
Management
Fund
2,086
4,764
6,850
—
—
—
—
—
$
90,835
$
52,209
$
50,445
$
2,605
$
2,202
$
97,406
$
731
$
37
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
88,295,695
$
9,110,731
$
—
$
9,110,731
Russell
Investment
Funds
Balanced
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
Balanced
Strategy
Fund
13
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2021
$
1,095
.70
$
1,024
.10
Expenses
Paid
During
Period*
$
0
.73
$
0
.70
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.14%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Balanced
Strategy
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
14
Balanced
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
100.0%
Alternative
-
3.9%
RIF
Global
Real
Estate
Securities
Fund
640,373
10,451
Domestic
Equities
-
18.6%
RIF
U.S.
Small
Cap
Equity
Fund
544,618
10,549
RIF
U.S.
Strategic
Equity
Fund
1,752,736
38,841
49,390
Fixed
Income
-
30.1%
RIC
Unconstrained
Total
Return
Fund
Class
Y
551,940
5,310
RIF
Strategic
Bond
Fund
7,006,569
74,550
79,860
International
Equities
-
39.5%
RIC
Emerging
Markets
Fund
Class
Y
284,995
6,680
RIC
Global
Equity
Fund
Class
Y
9,052,046
84,908
RIF
International
Developed
Markets
Fund
962,507
12,946
104,534
Multi-Asset
-
7.9%
RIC
Multi-Strategy
Income
Fund
Class
Y
1,901,962
20,826
Total
Investments
in
Affiliated
Funds
(cost
$228,273)
265,061
Total
Investments
-
100.0%
(identified
cost
$228,273)
265,061
Other
Assets
and
Liabilities,
Net
–
(0.0)
%
(116)
Net
Assets
-
100.0%
264,945
Russell
Investment
Funds
Balanced
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
15
Amounts
in
thousands
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
$
3,381
$
—
$
—
$
(1,255)
Credit
default
swap
contracts
—
(421)
—
—
Foreign
currency
exchange
contracts
—
—
(115)
—
Total
$
3,381
$
(421)
$
(115)
$
(1,255)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
99
$
—
$
—
$
133
Credit
default
swap
contracts
—
248
—
—
Foreign
currency
exchange
contracts
—
—
(27)
—
Total
$
99
$
248
$
(27)
$
133
For
further
disclosure
on
derivatives
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.
16
Balanced
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
228,273
Investments,
at
fair
value(>)
...........................................................................................................................................................
265,061
Receivables:
Investments
sold
................................................................................................................................................................
149
Prepaid
expenses
...........................................................................................................................................................................
2
Total
assets
.................................................................................................................................................
265,212
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
149
Accrued
fees
to
affiliates
....................................................................................................................................................
19
Other
accrued
expenses
.....................................................................................................................................................
99
Total
liabilities
.............................................................................................................................................
267
Net
Assets
............................................................................................................................................................
$
264,945
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
17
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
46,038
Shares
of
beneficial
interest
...........................................................................................................................................................
245
Additional
paid-in
capital
..............................................................................................................................................................
218,662
Net
Assets
............................................................................................................................................................
$
264,945
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.84
Net
assets
...............................................................................................................................................................................
$
264,944,787
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
24,450,693
Amounts
in
thousands
(>)
Investments
in
affiliated
funds
$
265,061
(#)
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.
18
Balanced
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
2,046
Expenses
Advisory
fees
....................................................................................................................................................................
254
Administrative
fees
...........................................................................................................................................................
54
Custodian
fees
...................................................................................................................................................................
22
Transfer
agent
fees
...........................................................................................................................................................
6
Professional
fees
...............................................................................................................................................................
27
Trustees’
fees
....................................................................................................................................................................
5
Printing
fees
......................................................................................................................................................................
25
Miscellaneous
...................................................................................................................................................................
4
Expenses
before
reductions
..............................................................................................................................................
397
Expense
reductions
...........................................................................................................................................................
(219)
Net
expenses
.................................................................................................................................................................................
178
Net
investment
income
(loss)
........................................................................................................................................................
1,868
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
10,457
Futures
contracts
..............................................................................................................................................................
2,126
Foreign
currency
exchange
contracts
................................................................................................................................
(115)
Credit
default
swap
contracts
............................................................................................................................................
(421)
Capital
gain
distributions
from
affiliated
funds
.................................................................................................................
117
Net
realized
gain
(loss)
..................................................................................................................................................................
12,164
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
8,724
Futures
contracts
..............................................................................................................................................................
232
Foreign
currency
exchange
contracts
................................................................................................................................
(27)
Credit
default
swap
contracts
............................................................................................................................................
248
Foreign
currency-related
transactions
...............................................................................................................................
(51)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
9,126
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
21,290
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
23,158
Russell
Investment
Funds
Balanced
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Balanced
Strategy
Fund
19
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
1,868
$
3,600
Net
realized
gain
(loss)
......................................................................................................................
12,164
5,376
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
9,126
6,683
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
23,158
15,659
Distributions
To
shareholders
.................................................................................................................................
(9,102)
(6,351)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(9,102)
(6,351)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
1,171
(23,263)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
15,227
(13,955)
Net
Assets
Beginning
of
period
.................................................................................................................................
249,718
263,673
End
of
period
..........................................................................................................................................
$
264,945
$
249,718
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
813
$
8,667
966
$
8,717
Proceeds
from
reinvestment
of
distributions
879
9,102
686
6,351
Payments
for
shares
redeemed
(1,576
)
(16,598
)
(4,289
)
(38,331
)
Total
increase
(decrease)
116
$
1,171
(2,637
)
$
(23,263
)
Russell
Investment
Funds
Balanced
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
20
Balanced
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2021(1)
10.26
.08
.88
.96
(.13)
(.25)
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
21
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.38)
10.84
9.57
264,945
.31
.14
.73
41
(.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.
22
Balanced
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
8,065
Administration
fees
9,256
Transfer
agent
fees
958
Trustee
fees
495
$
18,774
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
$
5,013
$
1,033
$
5,454
$
(785
)
$
193
$
—
$
1,032
$
—
RIF
Global
Real
Estate
Securities
Fund
4,902
5,480
843
20
892
10,451
103
—
RIF
U.S.
Small
Cap
Equity
Fund
15,754
863
9,271
2,939
264
10,549
33
—
RIF
U.S.
Strategic
Equity
Fund
29,968
7,188
2,284
363
3,606
38,841
90
—
RIC
Unconstrained
Total
Return
Fund
42,222
1,065
38,108
(511
)
642
5,310
100
—
RIF
Strategic
Bond
Fund
34,967
41,856
2,025
(109
)
(139
)
74,550
186
117
RIC
Emerging
Markets
Fund
15,171
588
10,238
2,417
(1,258
)
6,680
—
—
RIC
Global
Equity
Fund
37,480
46,854
5,577
(349
)
6,500
84,908
—
—
RIF
International
Developed
Markets
Fund
30,210
1,498
21,699
6,103
(3,166
)
12,946
375
—
RIC
Multi-Strategy
Income
Fund
24,303
1,717
6,753
369
1,190
20,826
126
—
U.S.
Cash
Management
Fund
4,215
14,887
19,102
—
—
—
1
—
$
244,205
$
123,029
$
121,354
$
10,457
$
8,724
$
265,061
$
2,046
$
117
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
231,720,929
$
33,340,088
$
—
$
33,340,088
Russell
Investment
Funds
Growth
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
Growth
Strategy
Fund
23
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2021
$
1,124
.80
$
1,024
.05
Expenses
Paid
During
Period*
$
0
.79
$
0
.75
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.15%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Growth
Strategy
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
24
Growth
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
100.0%
Alternative
-
4.9%
RIF
Global
Real
Estate
Securities
Fund
633,646
10,341
Domestic
Equities
-
24.7%
RIF
U.S.
Small
Cap
Equity
Fund
432,386
8,375
RIF
U.S.
Strategic
Equity
Fund
1,959,915
43,432
51,807
Fixed
Income
-
11.1%
RIC
Unconstrained
Total
Return
Fund
Class
Y
437,231
4,206
RIF
Strategic
Bond
Fund
1,783,869
18,981
23,187
International
Equities
-
49.4%
RIC
Emerging
Markets
Fund
Class
Y
179,240
4,201
RIC
Global
Equity
Fund
Class
Y
9,174,917
86,061
RIF
International
Developed
Markets
Fund
994,359
13,374
103,636
Multi-Asset
-
9.9%
RIC
Multi-Asset
Growth
Strategy
Fund
Class
Y
1,848,195
20,774
Total
Investments
in
Affiliated
Funds
(cost
$174,068)
209,745
Total
Investments
-
100.0%
(identified
cost
$174,068)
209,745
Other
Assets
and
Liabilities,
Net
–
(0.0)
%
(95)
Net
Assets
-
100.0%
209,650
Russell
Investment
Funds
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
25
Amounts
in
thousands
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
$
3
,
780
$
—
$
—
$
(948)
Credit
default
swap
contracts
—
(581)
—
—
Foreign
currency
exchange
contracts
—
—
9
—
Total
$
3,
780
$
(581)
$
9
$
(948)
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
(114)
$
—
$
—
$
101
Credit
default
swap
contracts
—
373
—
—
Foreign
currency
exchange
contracts
—
—
(9)
—
Total
$
(114)
$
373
$
(9)
$
101
For
further
disclosure
on
derivatives
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.
26
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
174,068
Investments,
at
fair
value(>)
...........................................................................................................................................................
209,745
Receivables:
Fund
shares
sold
................................................................................................................................................................
154
Prepaid
expenses
...........................................................................................................................................................................
1
Total
assets
.................................................................................................................................................
209,900
Liabilities
Payables:
Investments
purchased
......................................................................................................................................................
154
Accrued
fees
to
affiliates
....................................................................................................................................................
16
Other
accrued
expenses
.....................................................................................................................................................
80
Total
liabilities
.............................................................................................................................................
250
Net
Assets
............................................................................................................................................................
$
209,650
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
27
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
47,62
7
Shares
of
beneficial
interest
...........................................................................................................................................................
187
Additional
paid-in
capital
..............................................................................................................................................................
161,83
6
Net
Assets
............................................................................................................................................................
$
209,650
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:(#)
..........................................................................................................................................................
$
11.21
Net
assets
...............................................................................................................................................................................
$
209,649,509
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
18,702,786
Amounts
in
thousands
(>)
Investments
in
affiliated
funds
$
209,745
(#)
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.
28
Growth
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
1,598
Expenses
Advisory
fees
....................................................................................................................................................................
205
Administrative
fees
...........................................................................................................................................................
44
Custodian
fees
...................................................................................................................................................................
20
Transfer
agent
fees
............................................................................................................................................................
5
Professional
fees
...............................................................................................................................................................
25
Trustees’
fees
....................................................................................................................................................................
4
Printing
fees
......................................................................................................................................................................
19
Miscellaneous
...................................................................................................................................................................
3
Expenses
before
reductions
..............................................................................................................................................
325
Expense
reductions
...........................................................................................................................................................
(171)
Net
expenses
.................................................................................................................................................................................
154
Net
investment
income
(loss)
........................................................................................................................................................
1,44
4
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
12,98
9
Futures
contracts
..............................................................................................................................................................
2,832
Foreign
currency
exchange
contracts
................................................................................................................................
9
Credit
default
swap
contracts
............................................................................................................................................
(581)
Net
realized
gain
(loss)
..................................................................................................................................................................
15,24
9
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
7,144
Futures
contracts
..............................................................................................................................................................
(13)
Foreign
currency
exchange
contracts
................................................................................................................................
(9)
Credit
default
swap
contracts
............................................................................................................................................
373
Foreign
currency-related
transactions
...............................................................................................................................
(1
3
)
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
7,48
2
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
22,731
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
24,17
5
Russell
Investment
Funds
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
29
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
1,44
4
$
1,768
Net
realized
gain
(loss)
......................................................................................................................
15,24
9
4,30
2
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
7,48
2
10,34
4
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
24,17
5
16,414
Distributions
To
shareholders
.................................................................................................................................
(7,099)
(6,462
)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(7,099)
(6,462
)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(6,2
32
)
(16,555)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
10,84
4
(6,603
)
Net
Assets
Beginning
of
period
.................................................................................................................................
198,80
6
205,4
09
End
of
period
..........................................................................................................................................
$
209,65
0
$
198,80
6
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
186
$
2,020
529
$
4
,
519
Proceeds
from
reinvestment
of
distributions
671
7,099
697
6
,
462
Payments
for
shares
redeemed
(1,423)
(15,3
51
)
(3,080
)
(27,536
)
Total
increase
(decrease)
(566)
$
(6,23
2
)
(1,854
)
$
(16,555
)
Russell
Investment
Funds
Growth
Strategy
Fund
Financial
Highlights
—
For
the
Periods
Ended
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
30
Growth
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2021(1)
10.32
.08
1.18
1.26
(.07)
(.30)
December
31,
2020
9.72
.0
9
.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)
—(
g
)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Growth
Strategy
Fund
31
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.3
7
)
11.21
12.48
209,650
.32
.15
.70
47
(.3
1
)
10.32
9.
75
198
,
806
.3
3
.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.
32
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021
,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Advisory
fees
$
7,423
Administration
fees
7,361
Transfer
agent
fees
762
Trustee
fees
319
$
15,865
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
$
3,877
$
816
$
4,226
$
(1,414
)
$
947
$
—
$
815
$
—
RIF
Global
Real
Estate
Securities
Fund
3,859
6,575
924
36
795
10,341
82
—
RIF
U.S.
Small
Cap
Equity
Fund
18,082
616
13,994
4,465
(794
)
8,375
39
—
RIF
U.S.
Strategic
Equity
Fund
42,949
6,073
11,029
2,523
2,916
43,432
131
—
RIC
Unconstrained
Total
Return
Fund
28,504
1,363
25,748
(64
)
151
4,206
70
—
RIF
Strategic
Bond
Fund
—
19,553
826
3
251
18,981
—
—
RIC
Emerging
Markets
Fund
13,819
242
10,858
2,704
(1,706
)
4,201
—
—
RIC
Global
Equity
Fund
29,272
56,584
4,964
(179
)
5,348
86,061
—
—
RIF
International
Developed
Markets
Fund
29,479
1,292
20,296
4,903
(2,004
)
13,374
374
—
RIC
Multi-Asset
Growth
Strategy
Fund
18,859
1,767
1,104
12
1,240
20,774
86
—
U.S.
Cash
Management
Fund
4,839
13,578
18,417
—
—
—
1
—
$
193,539
$
108,459
$
112,386
$
12,989
$
7,144
$
209,745
$
1,598
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
176,999,397
$
32,745,190
$
—
$
32,745,190
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Shareholder
Expense
Example
—
June
30,
2021
(Unaudited)
Equity
Growth
Strategy
Fund
33
Fund
Expenses
The
following
disclosure
provides
important
information
regarding
the
Fund’s
Shareholder
Expense
Example
(“Example”).
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
and
(2)
ongoing
costs,
including
advisory
and
administrative
fees
and
other
Fund
expenses.
The
Example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
indicated,
which
for
this
Fund
is
from
January
1,
2021
to
June
30,
2021
.
Actual
Expenses
The
information
in
the
table
under
the
heading
“Actual
Performance”
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
column,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
column
in
the
row
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
in
the
table
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
information
under
the
heading
“Hypothetical
Performance
(5%
return
before
expenses)”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
The
fees
and
expenses
shown
in
this
section
do
not
reflect
any
Insurance
Company
Separate
Account
Policy
Charges.
Actual
Performance
Hypothetical
Performance
(5%
return
before
expenses)
Beginning
Account
Value
January
1,
2021
$
1,000
.00
$
1,000
.00
Ending
Account
Value
June
30,
2021
$
1,139
.30
$
1,024
.05
Expenses
Paid
During
Period*
$
0
.80
$
0
.75
*
Expenses
are
equal
to
the
Fund's
annualized
expense
ratio
of
0.15%
(representing
the
six
month
period
annualized),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period).
May
reflect
amounts
waived
and/or
reimbursed.
Without
any
waivers
and/or
reimbursements,
expenses
would
have
been
higher.
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Schedule
of
Investments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
34
Equity
Growth
Strategy
Fund
Amounts
in
thousands
(except
share
amounts)
Shares
Fair
Value
$
Investments
in
Affiliated
Funds
-
100.1%
Alternative
-
4.9%
RIF
Global
Real
Estate
Securities
Fund
150,220
2,452
Domestic
Equities
-
27.8%
RIF
U.S.
Small
Cap
Equity
Fund
128,204
2,483
RIF
U.S.
Strategic
Equity
Fund
508,970
11,279
13,762
International
Equities
-
57.5%
RIC
Emerging
Markets
Fund
Class
Y
53,098
1,245
RIC
Global
Equity
Fund
Class
Y
2,544,492
23,867
RIF
International
Developed
Markets
Fund
252,505
3,396
28,508
Multi-Asset
-
9.9%
RIC
Multi-Asset
Growth
Strategy
Fund
Class
Y
436,831
4,910
Total
Investments
in
Affiliated
Funds
(cost
$41,122)
49,632
Total
Investments
-
100.1%
(identified
cost
$41,122
)
49,632
Other
Assets
and
Liabilities,
Net
-
(0.1)%
(55)
Net
Assets
-
100.0%
49,577
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
Fair
Value
of
Derivative
Instruments
—
June
30,
2021
(Unaudited)
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
35
Amounts
in
thousands
Derivatives
not
accounted
for
as
hedging
instruments
Equity
Contracts
Credit
Contracts
Foreign
Currency
Contracts
Location:
Statement
of
Operations
-
Net
realized
gain
(loss)
Futures
contracts
$
535
$
—
$
—
Credit
default
swap
contracts
—
(43)
—
Foreign
currency
exchange
contracts
—
—
1
Total
$
535
$
(43)
$
1
Location:
Statement
of
Operations
-
Net
change
in
unrealized
appreciation
(depreciation)
Futures
contracts
$
4
$
—
$
—
Credit
default
swap
contracts
—
30
—
Foreign
currency
exchange
contracts
—
—
(1)
Total
$
4
$
30
$
(1)
For
further
disclosure
on
derivatives
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.
36
Equity
Growth
Strategy
Fund
Statement
of
Assets
and
Liabilities
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Assets
Investments,
at
identified
cost
........................................................................................................................................................
$
41,122
Investments,
at
fair
value(>)
...........................................................................................................................................................
49,632
Receivables:
Investments
sold
................................................................................................................................................................
111
From
affiliates
....................................................................................................................................................................
2
Total
assets
.................................................................................................................................................
49,745
Liabilities
Payables:
Fund
shares
redeemed
.......................................................................................................................................................
110
Accrued
fees
to
affiliates
....................................................................................................................................................
2
Other
accrued
expenses
.....................................................................................................................................................
56
Total
liabilities
.............................................................................................................................................
168
Net
Assets
............................................................................................................................................................
$
49,577
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
37
Statement
of
Assets
and
Liabilities,
continued
—
June
30,
2021
(Unaudited)
Amounts
in
thousands
Net
Assets
Consist
of:
Total
distributable
earnings
(losses)
...............................................................................................................................................
$
11,388
Shares
of
beneficial
interest
...........................................................................................................................................................
46
Additional
paid-in
capital
..............................................................................................................................................................
38,143
Net
Assets
............................................................................................................................................................
$
49,577
Net
Asset
Value
,
offering
and
redemption
price
per
share:
Net
asset
value
per
share:
(#)
.........................................................................................................................................................
$
10.71
Net
assets
...............................................................................................................................................................................
$
49,576,604
Shares
outstanding
($.01
par
value)
.......................................................................................................................................
4,629,788
Amounts
in
thousands
(>)
Investments
in
affiliated
funds
$
49,632
(#)
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.
38
Equity
Growth
Strategy
Fund
Statement
of
Operations
—
For
the
Period
Ended
June
30,
2021
(Unaudited)
Amounts
in
thousands
Investment
Income
Income
distributions
from
affiliated
funds
.....................................................................................................................................
$
188
Expenses
Advisory
fees
....................................................................................................................................................................
48
Administrative
fees
...........................................................................................................................................................
10
Custodian
fees
...................................................................................................................................................................
19
Transfer
agent
fees
...........................................................................................................................................................
1
Professional
fees
...............................................................................................................................................................
19
Trustees’
fees
....................................................................................................................................................................
1
Printing
fees
......................................................................................................................................................................
7
Miscellaneous
...................................................................................................................................................................
2
Expenses
before
reductions
..............................................................................................................................................
107
Expense
reductions
...........................................................................................................................................................
(71)
Net
expenses
.................................................................................................................................................................................
36
Net
investment
income
(loss)
........................................................................................................................................................
152
Net
Realized
and
Unrealized
Gain
(Loss)
Net
realized
gain
(loss)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
4,690
Futures
contracts
..............................................................................................................................................................
535
Foreign
currency
exchange
contracts
................................................................................................................................
1
Credit
default
swap
contracts
............................................................................................................................................
(43)
Net
realized
gain
(loss)
..................................................................................................................................................................
5,183
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
in
affiliated
funds
..........................................................................................................................................
848
Futures
contracts
..............................................................................................................................................................
4
Foreign
currency
exchange
contracts
................................................................................................................................
(1)
Credit
default
swap
contracts
............................................................................................................................................
30
Foreign
currency-related
transactions
...............................................................................................................................
2
Net
change
in
unrealized
appreciation
(depreciation)
...................................................................................................................
883
Net
realized
and
unrealized
gain
(loss)
.........................................................................................................................................
6,066
Net
Increase
(Decrease)
in
Net
Assets
from
Operations
..........................................................................................
$
6,218
Russell
Investment
Funds
Equity
Growth
Strategy
Fund
See
accompanying
notes
which
are
an
integral
part
of
the
financial
statements.
Equity
Growth
Strategy
Fund
39
Statements
of
Changes
in
Net
Assets
Amounts
in
thousands
Period
Ended
June
30,
2021
(Unaudited)
Fiscal
Year
Ended
December
31,
2020
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
(loss)
............................................................................................................
$
152
$
397
Net
realized
gain
(loss)
......................................................................................................................
5,183
(397)
Net
change
in
unrealized
appreciation
(depreciation)
.......................................................................
883
2,626
Net
increase
(decrease)
in
net
assets
from
operations
.............................................................................
6,218
2,626
Distributions
To
shareholders
.................................................................................................................................
(505)
(2,227)
Net
decrease
in
net
assets
from
distributions
..........................................................................................
(505)
(2,227)
Share
Transactions*
Net
increase
(decrease)
in
net
assets
from
share
transactions
.................................................................
(1,458)
(4,393)
Total
Net
Increase
(Decrease)
in
Net
Assets
..........................................................................
4,255
(3,994)
Net
Assets
Beginning
of
period
.................................................................................................................................
45,322
49,316
End
of
period
..........................................................................................................................................
$
49,577
$
45,322
*
Share
transaction
amounts
(in
thousands)
for
the
periods
ended
June
30,
2021
and
December
31,
2020
were
as
follows:
2021
(Unaudited)
2020
Shares
Dollars
Shares
Dollars
Proceeds
from
shares
sold
133
$
1,358
324
$
2,716
Proceeds
from
reinvestment
of
distributions
50
505
256
2,227
Payments
for
shares
redeemed
(325)
(3,321)
(1,168)
(9,336)
Total
increase
(decrease)
(142)
$
(1,458)
(588)
$
(4,393)
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.
40
Equity
Growth
Strategy
Fund
For
a
Share
Outstanding
Throughout
Each
Period.
$
Net
Asset
Value,
Beginning
of
Period
$
Net
Investment
Income
(Loss)
(a)(b)(f)
$
Net
Realized
and
Unrealized
Gain
(Loss)
$
Total
from
Investment
Operations
$
Distributions
from
Net
Investment
Income
$
Distributions
from
Net
Realized
Gain
June
30,
2021(1)
9.50
.03
1.29
1.32
(.11)
—
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
41
$
Total
Distributions
$
Net
Asset
Value,
End
of
Period
%
Total
Return
(c)(h)
$
Net
Assets,
End
of
Period
(000)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Gross
(d)(e)
%
Ratio
of
Expenses
to
Average
Net
Assets,
Net
(d)(e)(f)
%
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
(b)(c)(f)
%
Portfolio
Turnover
Rate
(c)
(.11)
10.71
13.93
49,577
.45
.15
.31
45
(.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.
42
Equity
Growth
Strategy
Fund
Related
Party
Transactions,
Fees
and
Expenses
(Unaudited)
Accrued
fees
payable
to
affiliates
for
the
period
ended
June
30,
2021
were
as
follows:
Transactions
(amounts
in
thousands)
during
the
period
ended
June
30,
2021
with
Underlying
Funds
which
are,
or
were,
an
affiliated
company
are
as
follows:
Federal
Income
Taxes
(Unaudited)
At
June
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Administration
fees
$
1,742
Transfer
agent
fees
180
Trustee
fees
67
$
1,989
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
RIF
Global
Real
Estate
Securities
Fund
$
1,299
$
1,149
$
227
$
4
$
227
$
2,452
$
28
$
—
RIF
U.S.
Small
Cap
Equity
Fund
5,985
226
4,947
1,861
(642
)
2,483
13
—
RIF
U.S.
Strategic
Equity
Fund
9,600
1,562
1,157
216
1,058
11,279
30
—
RIC
Unconstrained
Total
Return
Fund
3,265
426
3,699
(44
)
52
—
8
—
RIC
Emerging
Markets
Fund
4,399
348
3,818
1,096
(780
)
1,245
—
—
RIC
Global
Equity
Fund
9,154
14,357
1,221
(68
)
1,645
23,867
—
—
RIF
International
Developed
Markets
Fund
7,827
470
5,683
1,623
(841
)
3,396
101
—
RIC
Multi-Asset
Growth
Strategy
Fund
1,704
3,335
260
2
129
4,910
8
—
U.S.
Cash
Management
Fund
1,289
2,699
3,988
—
—
—
—
—
$
44,522
$
24,572
$
25,000
$
4,690
$
848
$
49,632
$
188
$
—
Cost
of
Investments
Unrealized
Appreciation
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
$
42,193,269
$
7,438,535
$
—
$
7,438,535
Russell
Investment
Funds
LifePoints
®
Variable
Target
Portfolio
Series
Notes
to
Financial
Highlights
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Highlights
43
(1)
For
the
period
ended
June
30,
2021
(Unaudited).
(a)
Average
daily
shares
outstanding
were
used
for
this
calculation.
(b)
Recognition
of
net
investment
income
by
the
Fund
is
affected
by
the
timing
of
the
declaration
of
dividends
by
the
Underlying
Funds
in
which
the
Fund
invests.
(c)
Periods
less
than
one
year
are
not
annualized.
(d)
The
ratios
for
periods
less
than
one
year
are
annualized.
(e)
The
calculation
includes
only
those
expenses
charged
directly
to
the
Fund
and
does
not
include
expenses
charged
to
the
Underlying
Funds
in
which
the
Fund
invests.
(f)
May
reflect
amounts
waived
and
reimbursed
by
Russell
Investment
Management,
LLC
(“RIM”).
(g)
Less
than
$.01
per
share.
(h)
The
total
return
does
not
reflect
any
Insurance
Company
Separate
Account
or
Policy
Charges.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements
—
June
30,
2021
(Unaudited)
44
Notes
to
Financial
Statements
1.
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.
Unless
otherwise
specified,
“period”
(as
used
within
the
financial
statements)
refers
to
the
six
months
ended
June
30,
2021.
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,
2021.
As
of
June
30,
2021,
the
equity
Underlying
Funds
in
which
the
Funds
may
invest
include
the
RIC
Sustainable
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
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
period
or
such
changes
may
be
made
one
or
more
times
in
a
period.
*
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
38%
58%
74%
85%
Fixed
Income
49%
30%
11%
—%
Multi-Asset
10%
8%
10%
10%
Alternative
#
3%
4%
5%
5%
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
45
2.
Significant
Accounting
Policies
The
Funds’
financial
statements
are
prepared
in
accordance
with
U.S.
generally
accepted
accounting
principles
(“U.S.
GAAP”)
which
require
the
use
of
management
estimates
and
assumptions
at
the
date
of
the
financial
statements.
Actual
results
could
differ
from
those
estimates.
The
Funds
are
considered
investment
companies
under
U.S.
GAAP
and
follow
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
The
following
is
a
summary
of
the
significant
accounting
policies
consistently
followed
by
each
Fund
in
the
preparation
of
its
financial
statements.
In
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
—
June
30,
2021
(Unaudited)
46
Notes
to
Financial
Statements
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
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
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.
During
the
period
ended
June
30,
2021
all
investments
held
were
classified
as
Level
1
within
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
period.
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
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
47
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
period,
each
Fund
intends
to
qualify
or
continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
of
1986,
as
amended
(the
“Code”)
and
intends
to
distribute
all
of
its
taxable
income
and
capital
gains.
Therefore,
no
federal
income
tax
provision
is
required
for
the
Funds.
The
Funds
comply
with
the
authoritative
guidance
for
uncertainty
in
income
taxes
which
requires
management
to
determine
whether
a
tax
position
of
the
Funds
is
more
likely
than
not
to
be
sustained
upon
examination,
including
resolution
of
any
related
appeals
or
litigation
processes,
based
on
the
technical
merits
of
the
position.
For
tax
positions
meeting
the
more
likely
than
not
threshold,
the
tax
amount
recognized
in
the
financial
statements
is
reduced
by
the
largest
benefit
that
has
a
greater
than
50%
likelihood
of
being
realized
upon
ultimate
settlement
with
the
relevant
taxing
authority.
Management
determined
that
no
accruals
need
to
be
made
in
the
financial
statements
due
to
uncertain
tax
positions.
Management
continually
reviews
and
adjusts
the
Funds’
liability
for
income
taxes
based
on
analyses
of
tax
laws
and
regulations,
as
well
as
their
interpretations,
and
other
relevant
factors.
Each
Fund
files
a
U.S.
tax
return.
At
June
30,
2021,
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,
2018
through
December
31,
2020,
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
—
June
30,
2021
(Unaudited)
48
Notes
to
Financial
Statements
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
exchange
contracts
for
trade
settlement
purposes.
The
Funds
may
pursue
their
strategy
of
being
fully
invested
by
exposing
cash
to
the
performance
of
segments
of
the
global
equity
market
by
purchasing
index
futures
contracts.
This
is
intended
to
cause
the
Funds
to
perform
as
though
cash
were
actually
invested
in
the
global
equity
market.
Hedging
may
be
used
by
the
Funds
to
limit
or
control
risks,
such
as
adverse
movements
in
exchange
rates
and
interest
rates.
Return
enhancement
can
be
accomplished
through
the
use
of
derivatives
in
a
Fund,
including
using
derivatives
as
a
substitute
for
holding
physical
securities,
and
using
them
to
express
various
macro
views
(e.g.,
interest
rate
movements,
currency
movements,
and
macro
credit
strategies).
By
purchasing
certain
instruments,
the
Funds
may
more
effectively
achieve
the
desired
portfolio
characteristics
that
assist
them
in
meeting
their
investment
objectives.
Depending
on
how
the
derivatives
are
structured
and
utilized,
the
risks
associated
with
them
may
vary
widely.
These
risks
include,
but
are
not
limited
to,
market
risk,
liquidity
risk,
leveraging
risk,
counterparty
risk,
basis
risk,
reinvestment
risk,
political
risk,
prepayment
risk,
extension
risk,
valuation
risk
and
credit
risk.
Futures,
certain
options
and
cleared
swaps
are
traded
or
cleared
on
an
exchange
or
central
exchange
clearing
house.
Exchange-
traded
or
exchange-cleared
transactions
generally
present
less
counterparty
risk
to
a
Fund.
The
exchange’s
clearing
house
stands
between
the
Fund
and
the
broker
to
the
contract
and
therefore,
credit
risk
is
generally
limited
to
the
failure
of
the
clearing
house
and
the
clearing
member.
Cleared
swap
contracts
are
subject
to
clearing
house
rules,
including
initial
and
variation
margin
requirement,
daily
settlement
of
obligations
and
the
clearing
house
guarantee
of
payments
to
the
broker.
There
is,
however,
still
counterparty
risk
due
to
the
insolvency
of
the
broker
with
respect
to
any
margin
held
in
the
brokers’
customer
accounts.
While
clearing
members
are
required
to
segregate
customer
assets
from
their
own
assets,
in
the
event
of
insolvency,
there
may
be
a
shortfall
in
the
amount
of
margin
held
by
the
broker
for
its
clients.
Collateral
and
margin
requirements
for
exchange-traded
or
exchange-cleared
derivatives
are
established
through
regulation,
as
well
as
set
by
the
broker
or
applicable
clearing
house.
Margin
for
exchange-traded
and
exchange-cleared
transactions
are
detailed
in
the
Statements
of
Assets
and
Liabilities
as
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
Statements
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
June
30,
2021,
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
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
49
Foreign
Currency
Exchange
Contracts
The
Funds
may
enter
into
foreign
currency
exchange
spot
contracts
and
forward
foreign
currency
exchange
contracts
(“FX
contracts”).
From
time
to
time,
the
Funds
may
enter
into
FX
contracts
to
hedge
certain
foreign
currency-denominated
assets.
FX
contracts
are
recorded
at
fair
value.
Certain
risks
may
arise
upon
entering
into
these
FX
contracts
from
the
potential
inability
of
counterparties
to
meet
the
terms
of
their
FX
contracts
and
are
generally
limited
to
the
amount
of
unrealized
gain
on
the
FX
contracts,
if
any,
that
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
For
the
period
ended
June
30,
2021,
the
following
Funds
entered
into
FX
contracts
primarily
for
the
strategies
listed
below:
The
Funds'
FX
contract
notional
dollar
values
outstanding
fluctuate
throughout
the
period
as
required
to
meet
strategic
objectives.
The
following
tables
illustrate
the
quarterly
volume
of
FX
contracts.
For
the
purpose
of
this
disclosure,
volume
is
measured
by
the
amounts
bought
and
sold
in
USD.
Options
The
Funds
may
purchase
and
sell
(write)
call
and
put
options
on
securities
and
securities
indices.
Such
options
are
traded
on
a
national
securities
exchange
or
in
an
OTC
market.
The
Funds
may
also
purchase
and
sell
(write)
call
and
put
options
on
foreign
currencies.
When
a
Fund
writes
a
covered
call
or
a
put
option,
an
amount
equal
to
the
premium
received
by
the
Fund
is
included
in
the
Fund’s
Statement
of
Assets
and
Liabilities
as
an
asset
and
as
an
equivalent
liability.
The
amount
of
the
liability
is
subsequently
marked-
to-market
to
reflect
the
current
fair
value
of
the
option
written.
The
Fund
receives
a
premium
on
the
sale
of
a
call
option
but
gives
up
the
opportunity
to
profit
from
any
increase
in
the
value
of
the
underlying
instrument
above
the
exercise
price
of
the
option,
and
when
the
Fund
writes
a
put
option
it
is
exposed
to
a
decline
in
the
price
of
the
underlying
instrument.
When
a
Fund
sells
an
uncovered
call
option,
it
does
not
simultaneously
have
a
long
position
in
the
underlying
security.
When
a
Fund
sells
an
uncovered
put
option,
it
does
not
simultaneously
have
a
short
position
in
the
underlying
security.
Uncovered
options
are
riskier
than
covered
options
because
there
is
no
underlying
security
held
by
the
Fund
that
can
act
as
a
partial
hedge.
Whether
an
option
which
the
Fund
has
written
expires
on
its
stipulated
expiration
date
or
the
Fund
enters
into
a
closing
purchase
transaction,
the
Fund
realizes
a
gain
(or
loss,
if
the
cost
of
a
closing
purchase
transaction
exceeds
the
premium
received
when
the
option
was
sold)
without
regard
to
any
unrealized
gain
or
loss
on
the
underlying
security,
and
the
liability
related
to
such
option
is
extinguished.
If
a
call
option
which
the
Fund
has
written
is
exercised,
the
Fund
realizes
a
capital
gain
or
loss
from
the
sale
of
the
underlying
security,
and
the
proceeds
from
such
sale
are
increased
by
the
premium
originally
received.
When
a
put
option
which
a
Fund
has
written
is
exercised,
the
amount
of
the
premium
originally
received
will
reduce
the
cost
of
the
security
which
a
Fund
purchases
upon
exercise
of
the
option.
The
Funds’
use
of
written
options
involves,
to
varying
degrees,
elements
of
market
risk
in
excess
of
the
amount
recognized
in
the
Statements
of
Assets
and
Liabilities.
The
face
or
contract
amounts
of
these
instruments
reflect
the
extent
of
the
Funds’
exposure
to
market
risk.
The
risks
may
be
caused
by
an
imperfect
correlation
between
movements
in
the
price
of
the
instrument
and
the
price
of
the
underlying
securities
and
interest
rates.
The
Funds
may
enter
into
a
swaption
(an
option
on
a
swap).
In
a
swaption,
in
exchange
for
an
option,
the
buyer
gains
the
right
but
not
the
obligation
to
enter
into
a
specified
swap
agreement
with
the
issuer
on
a
specified
future
date.
The
writer
of
the
contract
receives
the
premium
and
bears
the
risk
of
unfavorable
changes
in
the
preset
rate
on
the
underlying
swap.
For
the
period
ended
June
30,
2021,
the
Funds
did
not
enter
into
any
options.
Funds
Strategies
Moderate
Strategy
Fund
Return
enhancement
and
hedging
Balanced
Strategy
Fund
Return
enhancement
and
hedging
Outstanding
Contract
Amounts
Sold
Quarter
Ended
March
31,
2021
June
30,
2021
Moderate
Strategy
Fund
$
2,288,733
$
—
Balanced
Strategy
Fund
2,597,322
—
Outstanding
Contract
Amounts
Bought
Quarter
Ended
March
31,
2021
June
30,
2021
Moderate
Strategy
Fund
$
2,255,740
$
—
Balanced
Strategy
Fund
2,547,464
—
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
50
Notes
to
Financial
Statements
Futures
Contracts
The
Funds
may
invest
in
futures
contracts
(i.e.,
interest
rate,
foreign
currency
and
index
futures
contracts).
The
face
or
contract
value
of
these
instruments
reflect
the
extent
of
the
Funds’
exposure
to
off
balance
sheet
risk.
The
primary
risks
associated
with
the
use
of
futures
contracts
are
an
imperfect
correlation
between
the
change
in
fair
value
of
the
securities
held
by
the
Funds
and
the
prices
of
futures
contracts,
and
the
possibility
of
an
illiquid
market.
Upon
entering
into
a
futures
contract,
the
Funds
are
required
to
deposit
with
a
broker
an
amount,
termed
the
initial
margin,
which
typically
represents
5%
to
10%
of
the
purchase
price
indicated
in
the
futures
contract.
Payments
to
and
from
the
broker,
known
as
variation
margin,
are
typically
required
to
be
made
on
a
daily
basis
as
the
price
of
the
futures
contract
fluctuates.
Changes
in
initial
settlement
value
are
accounted
for
as
unrealized
appreciation
(depreciation)
until
the
contracts
are
terminated,
at
which
time
realized
gains
and
losses
are
recognized.
For
the
period
ended
June
30,
2021,
the
following
Funds
entered
into
futures
contracts
primarily
for
the
strategies
listed
below:
The
Funds'
futures
contracts
notional
amounts
fluctuate
throughout
the
period
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
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.
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,
2021
June
30,
2021
Moderate
Strategy
Fund
$
27,951,945
$
—
Balanced
Strategy
Fund
93,251,201
—
Growth
Strategy
Fund
77,233,215
—
Equity
Growth
Strategy
Fund
16,510,158
—
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
51
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
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
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
52
Notes
to
Financial
Statements
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
entering
into
a
credit
default
swap
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
For
credit
default
swap
agreements
on
asset-
backed
securities
and
credit
indices,
the
quoted
market
prices
and
resulting
values
serve
as
the
indicator
of
the
current
status
of
the
payment/performance
risk.
Wider
credit
spreads
and
increasing
fair
values,
in
absolute
terms
when
compared
to
the
notional
amount
of
the
swap,
generally
represent
a
deterioration
of
the
referenced
entity’s
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
Funds
as
a
seller
of
protection
could
be
required
to
make
under
a
credit
default
swap
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
all
credit
default
swap
agreements
outstanding
as
of
June
30,
2021,
for
which
a
Fund
is
the
seller
of
protection
are
disclosed
in
the
Schedules
of
Investments.
These
potential
amounts
would
be
partially
offset
by
any
recovery
values
of
the
respective
referenced
obligations,
upfront
payments
received
upon
entering
into
the
agreement,
or
net
amounts
received
from
the
settlement
of
buy
protection
credit
default
swap
agreements
entered
into
by
a
Fund
for
the
same
referenced
entity
or
entities.
Credit
default
swaps
could
result
in
losses
if
the
Funds
do
not
correctly
evaluate
the
creditworthiness
of
the
company
or
companies
on
which
the
credit
default
swap
is
based.
Credit
default
swap
agreements
may
involve
greater
risks
than
if
the
Funds
had
invested
in
the
reference
obligation
directly
since,
in
addition
to
risks
relating
to
the
reference
obligation,
credit
default
swaps
are
subject
to
illiquidity
and
counterparty
risk.
A
Fund
will
generally
incur
a
greater
degree
of
risk
when
it
sells
a
credit
default
swap
than
when
it
purchases
a
credit
default
swap.
As
a
buyer
of
a
credit
default
swap,
a
Fund
may
lose
its
investment
and
recover
nothing
should
a
credit
event
fail
to
occur
and
the
swap
is
held
to
its
termination
date.
As
seller
of
a
credit
default
swap,
if
a
credit
event
were
to
occur,
the
value
of
any
deliverable
obligation
received
by
a
Fund,
coupled
with
the
upfront
or
periodic
payments
previously
received,
may
be
less
than
what
it
pays
to
the
buyer,
resulting
in
a
loss
of
value
to
the
Fund.
If
the
creditworthiness
of
a
Fund’s
swap
counterparty
declines,
the
risk
that
the
counterparty
may
not
perform
could
increase,
potentially
resulting
in
a
loss
to
the
Fund.
To
limit
the
counterparty
risk
involved
in
swap
agreements,
the
Funds
will
only
enter
into
swap
agreements
with
counterparties
that
meet
certain
standards
of
creditworthiness.
Although
there
can
be
no
assurance
that
the
Funds
will
be
able
to
do
so,
the
Funds
may
be
able
to
reduce
or
eliminate
their
exposure
under
a
swap
agreement
either
by
assignment
or
other
disposition,
or
by
entering
into
an
offsetting
swap
agreement
with
the
same
party
or
another
creditworthy
party.
The
Funds
may
have
limited
ability
to
eliminate
their
exposure
under
a
credit
default
swap
if
the
credit
quality
of
the
reference
entity
or
underlying
asset
has
declined.
For
the
period
ended
June
30,
2021,
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
period
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.
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.
Funds
Strategies
Moderate
Strategy
Fund
Return
enhancement,
hedging
and
exposing
cash
to
markets
Balanced
Strategy
Fund
Return
enhancement,
hedging
and
exposing
cash
to
markets
Growth
Strategy
Fund
Return
enhancement,
hedging
and
exposing
cash
to
markets
Equity
Growth
Strategy
Fund
Return
enhancement,
hedging
and
exposing
cash
to
markets
Credit
Default
Swap
Notional
Amounts
Outstanding
Quarter
Ended
March
31,
2021
June
30,
2021
Moderate
Strategy
Fund
$
11,000,000
$
—
Balanced
Strategy
Fund
8,430,000
—
Growth
Strategy
Fund
10,400,000
—
Equity
Growth
Strategy
Fund
500,000
—
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
53
The
returns
to
be
exchanged
between
the
parties
are
calculated
with
respect
to
a
“notional
amount”
(i.e.,
a
specified
dollar
amount
that
is
hypothetically
invested
in
a
“basket”
of
securities
representing
a
particular
index).
For
the
period
ended
June
30,
2021,
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
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.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
54
Notes
to
Financial
Statements
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.
From
time
to
time,
as
occurred
in
early
2020,
outbreaks
of
infectious
illness,
public
health
emergencies
and
other
similar
issue
(“public
health
events”)
may
occur
in
one
or
more
countries
around
the
globe.
Such
public
health
events
have
had
significant
impacts
on
both
the
country
in
which
the
event
is
first
identified
as
well
as
other
countries
in
the
global
economy.
Public
health
events
have
reduced
consumer
demand
and
economic
output
in
one
or
more
countries
subject
to
the
public
health
event,
resulted
in
restrictions
on
trading
and
market
closures
(including
for
extended
periods
of
time),
increased
substantially
the
volatility
of
financial
markets,
and,
more
generally,
have
had
a
significant
negative
impact
on
the
economy
of
the
country
or
countries
subject
to
the
public
health
event.
Public
health
events
have
also
adversely
affected
the
global
economy,
global
supply
chains
and
the
securities
in
which
the
Funds
and/or
Underlying
Fund’s
invest
across
a
number
of
industries,
sectors
and
asset
classes.
The
extent
of
the
impact
depends
on,
among
other
factors,
the
scale
and
duration
of
any
such
public
health
event.
Public
health
events
have
resulted
in
the
governments
of
affected
countries
taking
potentially
significant
measures
to
seek
to
mitigate
the
transmission
of
the
infectious
illness
or
other
public
health
issue
including,
among
other
measures,
imposing
travel
restrictions
and/or
quarantines
and
limiting
the
operations
of
non-essential
businesses.
Any
of
these
events
could
adversely
affect
a
Fund’s
and/or
Underlying
Fund’s
investments
and
performance,
including
by
exacerbating
other
pre-existing
political,
social
and
economic
risks.
Governmental
authorities
and
other
entities
may
respond
to
such
events
with
fiscal
and/or
monetary
policy
changes.
It
is
not
guaranteed
that
these
policy
changes
will
have
their
intended
effect
and
it
is
possible
that
the
implementation
of
or
subsequent
reversal
of
such
policy
changes
could
increase
volatility
in
financial
markets,
which
could
adversely
affect
a
Fund’s
and/or
Underlying
Fund’s
investments
and
performance.
3.
Investment
Transactions
Securities
During
the
period
ended
June
30,
2021,
purchases
and
sales
of
investment
securities
(excluding
short-term
investments
and
options)
were
as
follows:
Purchases
Sales
Moderate
Strategy
Fund
$
47,445,407
$
43,595,057
Balanced
Strategy
Fund
108,142,168
102,252,321
Growth
Strategy
Fund
94,881,471
93,969,238
Equity
Growth
Strategy
Fund
21,873
,171
21,010,800
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
55
4.
Related
Party
Transactions,
Fees
and
Expenses
Adviser,
Administrator,
Transfer
and
Dividend
Disbursing
Agent
RIM
provides
or
oversees
the
provision
of
all
investment
advisory
and
portfolio
management
services
for
the
Funds.
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.
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.
An
affiliated
company
is
a
company
in
which
a
Fund
has
ownership
of
at
least
5%
of
the
voting
securities
or
which
the
Fund
controls,
is
controlled
by
or
is
under
common
control
with.
See
each
Fund’s
Related
Party
Transactions,
Fees
and
Expenses
for
disclosure
of
transactions
with
affiliated
companies.
The
advisory
fee
of
0.20%
is
based
upon
the
average
daily
net
assets
of
each
Fund
and
the
administration
fee
of
up
to
0.0425%
is
based
on
the
combined
average
daily
net
assets
of
the
Funds.
Advisory
and
administration
fees
are
paid
monthly.
The
following
table
shows
the
total
amount
of
each
of
these
fees
paid
by
the
Funds
for
the
period
ended
June
30,
2021:
RIM
has
agreed
to
certain
waivers
of
its
advisory
fees
as
follows:
For
the
Moderate
Strategy
Fund,
RIM
has
contractually
agreed,
until
April
30,
2022,
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,
2022,
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,
2022,
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,
2022,
to
waive
up
to
the
full
amount
of
its
0.20%
advisory
fee
and
then
to
reimburse
the
Fund
for
other
direct
Fund-level
expenses
to
the
extent
that
direct
Fund-level
expenses
exceed
0.15%
of
the
average
daily
net
assets
of
the
Fund
on
an
annual
basis.
Direct
Fund-level
expenses
do
not
include
extraordinary
expenses
or
the
expenses
of
other
investment
companies
in
which
the
Fund
invests,
including
the
Underlying
Funds,
which
are
borne
indirectly
by
the
Fund.
This
waiver
and
reimbursement
may
not
be
terminated
during
the
relevant
period
except
with
Board
approval.
For
the
period
ended
June
30,
2021,
RIM
waived/reimbursed
the
following
expenses:
Advisory
Administrative
Moderate
Strategy
Fund
$
94,302
$
20,039
Balanced
Strategy
Fund
254,245
54,027
Growth
Strategy
Fund
204,798
43,519
Equity
Growth
Strategy
Fund
47,793
10,156
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
56
Notes
to
Financial
Statements
RIM
does
not
have
the
ability
to
recover
amounts
waived
or
reimbursed
from
previous
periods.
Transfer
and
Dividend
Disbursing
Agent
RIFUS
serves
as
transfer
agent
and
provides
dividend
disbursing
services
to
the
Funds.
For
this
service,
RIFUS
is
paid
a
fee
based
upon
the
average
daily
net
assets
of
the
Funds
for
transfer
agency
and
dividend
disbursing
services.
RIFUS
retains
a
portion
of
this
fee
for
its
services
provided
to
the
Funds
and
pays
the
balance
to
unaffiliated
agents
who
assist
in
providing
these
services.
Transfer
agency
fees
paid
by
the
Funds
presented
herein
for
the
period
ended
June
30,
2021
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
31
funds
and
RIF,
which
has
nine
funds.
Each
of
the
Trustees
is
a
Trustee
of
RIC
and
RIF.
The
Russell
Investments
Fund
Complex
compensates
each
Trustee
who
is
not
an
employee
of
RIM
or
its
affiliates.
Trustee
compensation
and
expenses
are
allocated
to
each
Fund
based
on
its
net
assets
relative
to
other
funds
in
the
Russell
Investments
Fund
Complex.
For
the
period
ended
June
30,
2021,
the
regular
compensation
paid
to
the
Trustees
by
the
Russell
Investments
Fund
Complex
was
$928,870.
5.
Federal
Income
Taxes
At
June
30,
2021,
the
Funds
did
not
have
any
capital
loss
carryforwards.
6.
Record
Ownership
As
of
June
30,
2021,
the
following
table
includes
shareholders
of
record
with
greater
than
10%
of
the
total
outstanding
shares
of
each
respective
Fund.
Waiver
Reimbursement
Total
Moderate
Strategy
Fund
$
94,302
$
12,449
$
106,751
Balanced
Strategy
Fund
218,885
—
218,885
Growth
Strategy
Fund
171,398
—
171,398
Equity
Growth
Strategy
Fund
47,793
23,384
71,177
Amount
Moderate
Strategy
Fund
$
2,075
Balanced
Strategy
Fund
5,593
Growth
Strategy
Fund
4,506
Equity
Growth
Strategy
Fund
1,051
#
of
Shareholders
%
Moderate
Strategy
Fund
1
86.4
Balanced
Strategy
Fund
2
97.4
Growth
Strategy
Fund
2
97.5
Equity
Growth
Strategy
Fund
2
96.0
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Notes
to
Financial
Statements,
continued
—
June
30,
2021
(Unaudited)
Notes
to
Financial
Statements
57
7.
Subsequent
Events
Management
has
evaluated
the
events
and/or
transactions
that
have
occurred
through
the
date
the
financial
statements
were
issued
and
noted
no
events
have
occurred
that
require
disclosure
except
the
following:
On
July
2,
2021,
the
Board
declared
dividends
payable
from
net
investment
income.
Dividends
were
paid
on
July
7,
2021
to
shareholders
of
record
effective
with
the
opening
on
July
6,
2021.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement
—(Unaudited)
58
Basis
for
Approval
of
Investment
Advisory
Agreement
The
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
requires
that
the
Board
of
Trustees
(the
“Board”),
including
a
majority
of
its
members
who
are
not
considered
to
be
“interested
persons”
under
the
1940
Act
(the
“Independent
Trustees”)
voting
separately,
approve
for
an
initial
term
not
to
exceed
two
years
and,
thereafter,
approve
the
continuation
of
the
advisory
agreement
with
Russell
Investment
Management,
LLC
(“RIM”)
(the
“RIM
Agreement”)
and
the
portfolio
management
contract
with
each
Money
Manager
of
the
funds
(collectively,
the
“portfolio
management
contracts”
and,
with
the
RIM
Agreement,
the
“Agreements”)
in
which
the
Funds
invest
(the
“Underlying
Funds”)
on
at
least
an
annual
basis
and
that
the
terms
and
conditions
of
the
RIM
Agreement
and
the
terms
and
conditions
of
each
portfolio
management
contract
provide
for
its
termination
if
continuation
is
not
approved
annually.
The
Board,
which
is
currently
comprised
entirely
of
Independent
Trustees
(the
“Trustees”),
considered
the
continuation
of
the
Agreements
at
a
meeting
held
by
video
conference
on
May
21,
2021
(the
“Agreement
Evaluation
Meeting”)
in
reliance
on
the
exemptive
order
for
temporary,
conditional
relief
from
the
in-person
voting
requirement
of
Section
15(c)
of
the
1940
Act
provided
by
the
U.S.
Securities
and
Exchange
Commission
(the
“SEC”).
During
the
course
of
a
year,
the
Trustees
receive
a
wide
variety
of
materials
regarding,
among
other
things,
the
investment
performance
of
the
Funds
and
Underlying
Funds,
sales
and
redemptions
of
the
Funds’
and
Underlying
Funds’
shares,
management
of
the
Funds
and
the
Underlying
Funds
and
other
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
and
compliance
with
applicable
regulatory
requirements.
In
preparation
for
the
annual
review,
the
Trustees,
with
the
advice
and
assistance
of
their
independent
counsel
(“Independent
Counsel”),
also
requested
and
considered
(1)
information
and
reports
prepared
by
RIM
relating
to
the
services
provided
by
RIM
(and
its
affiliates)
and
the
Money
Managers
to
the
Funds
and
the
Underlying
Funds;
(2)
information
and
reports
prepared
by
RIM
relating
to
the
profitability
of
each
Fund
and
Underlying
Fund
to
RIM
(and
its
affiliates);
and
(3)
information
received
from
an
independent,
nationally
recognized
provider
of
investment
company
information
comparing
the
performance
of
the
Funds
and
the
Underlying
Funds
and
their
respective
operating
expenses
over
various
periods
of
time
with
other
peer
funds
not
managed
by
RIM,
believed
by
the
provider
to
be
generally
comparable
to
the
Funds
and
the
Underlying
Funds
(the
“Third-Party
Information”).
The
Third-Party
Information
provided
performance
and
operating
expense
comparisons
for
Class
S
shares
of
the
Underlying
Funds
that
are
series
of
Russell
Investment
Company
(“RIC
Underlying
Funds”).
In
the
case
of
each
Fund,
its
other
peer
funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Comparable
Funds,”
and,
with
the
Fund,
such
Comparable
Funds
are
collectively
hereinafter
referred
to
as
the
Fund’s
“Performance
Universe”
in
the
case
of
performance
comparisons
and
the
Fund’s
“Expense
Universe”
in
the
case
of
operating
expense
comparisons.
The
foregoing
and
other
information
received
by
the
Board
in
connection
with
its
evaluations
of
the
Agreements
are
collectively
called
the
“Agreement
Evaluation
Information.”
The
Trustees’
evaluations
also
reflected
the
knowledge
and
familiarity
gained
as
Board
members
of
the
Funds
and
the
other
RIM-managed
funds
for
which
the
Board
has
supervisory
responsibility,
including
the
Underlying
Funds
(“Other
RIM
Funds”),
with
respect
to
services
provided
by
RIM,
RIM’s
affiliates
and
each
Money
Manager.
The
Trustees
received
a
memorandum
from
counsel
to
the
Funds
and
the
Underlying
Funds
(“Fund
Counsel”)
discussing
the
legal
standards
for
their
consideration
of
the
continuations
of
the
Agreements,
and
separately
received
a
memorandum
regarding
their
responsibilities
from
their
Independent
Counsel.
On
April
26,
2021,
the
Trustees
met
privately
by
video
conference
with
Independent
Counsel
to
discuss
the
Agreement
Evaluation
Information
received
to
that
date.
At
a
meeting
held
on
April
27,
2021
(the
“Agreement
Information
Review
Meeting”),
the
Trustees,
in
preparation
for
the
Agreement
Evaluation
Meeting,
met
by
video
conference
in
an
executive
session
with
a
representative
of
TA
Associates
Management,
L.P.
(“TA
Associates”),
at
which
Independent
Counsel
and
Fund
Counsel,
and
the
Chief
Executive
Officer
and
Chief
Financial
Officer
of
RIM’s
parent
company
were
present;
met
by
video
conference
with
representatives
of
RIM;
and
then
the
Trustees
met
by
video
conference
in
a
private
session
with
Independent
Counsel
at
which
no
representatives
of
RIM
or
the
Funds’
management
were
present
to
further
review
and
discuss
the
Agreement
Evaluation
Information
received
to
that
date.
On
the
basis
of
that
review,
the
Trustees
communicated
additional
questions
and
requested
additional
Agreement
Evaluation
Information.
On
May
11,
2021,
the
Board
Chair
met
by
conference
telephone
call
with
representatives
of
management
to
further
discuss
the
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
and
subsequent
thereto.
Certain
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
and
by
the
Board
Chair
following
the
Agreement
Information
Review
Meeting
was
provided
to
the
Board
on
May
7,
2021.
On
May
12,
2021,
the
Trustees
met
by
video
conference
with
representatives
of
RIM
and
then
met
in
private
session
with
Independent
Counsel
to
further
discuss
the
Agreement
Evaluation
Information
and
review
the
additional
Agreement
Evaluation
Information
provided
to
date.
After
May
12,
2021,
the
Board
Chair
engaged
in
discussions
with
representatives
of
management
regarding
the
Board’s
requests
relating
to
the
additional
Agreement
Evaluation
Information.
On
May
18,
2021,
the
Board
was
provided
with
updated
information
in
response
to
the
additional
Agreement
Evaluation
Information
requested
at
the
Agreement
Information
Review
Meeting
and
subsequent
thereto.
At
the
Agreement
Evaluation
Meeting,
the
Trustees
again
met
by
video
conference
in
a
private
session
with
Independent
Counsel
to
review
the
additional
or
updated
Agreement
Evaluation
Information
received
to
that
date.
At
the
Agreement
Evaluation
Meeting,
the
Trustees
considered
the
proposed
continuance
of
the
Agreements
with
RIM,
Fund
management,
Independent
Counsel
and
Fund
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
59
Counsel.
The
Board
considered
that
the
Agreement
Evaluation
Information
and
presentations
made
by
RIM
at
the
Agreement
Evaluation
Meeting
as
part
of
this
review
encompassed
the
Funds
and
all
Other
RIM
Funds.
Information
received
by
the
Board
prior
to
and
at
the
Agreement
Information
Review
Meeting,
the
Agreement
Evaluation
Meeting,
and
other
meetings
identified
above
is
included
in
the
Agreement
Evaluation
Information.
Prior
to
voting
at
the
Agreement
Evaluation
Meeting,
the
Trustees
met
in
private
session
with
Independent
Counsel
to
consider
Agreement
Evaluation
Information
received
from
RIM
and
management
at
and
prior
to
the
Agreement
Evaluation
Meeting.
The
discussion
below
reflects
all
of
these
reviews.
In
evaluating
the
Agreements,
the
Board
considered
that
each
of
the
Underlying
Funds
employs
a
manager-of-managers
method
of
investment
and
RIM’s
past
expressed
belief
that
the
Underlying
Funds,
in
employing
a
manager-of-managers
method
of
investment,
operate
in
a
manner
that
is
different
from
most
other
investment
companies.
In
the
case
of
most
other
investment
companies,
an
investment
advisory
fee
is
paid
by
the
investment
company
to
its
adviser
which,
in
turn,
employs
and
compensates
individual
portfolio
managers
to
make
specific
securities
selections
consistent
with
the
adviser’s
style
and
investment
philosophy.
In
the
case
of
the
Underlying
Funds,
RIM,
however,
has
engaged
multiple
unaffiliated
Money
Managers.
RIM
is
responsible
for
paying
fees
to
the
Money
Managers
(“Money
Manager
Fees”)
out
of
the
fees
paid
by
the
Underlying
Funds
to
RIM
for
its
services
under
the
RIM
Agreement
(the
“Advisory
Fee”).
A
Money
Manager
may
have
(1)
a
discretionary
asset
management
assignment
pursuant
to
which
it
is
allocated
a
portion
of
an
Underlying
Fund’s
assets
to
manage
directly
and
for
which
it
selects
and
trades
the
individual
portfolio
securities
for
the
assets
assigned
to
it;
(2)
a
non-discretionary
assignment
pursuant
to
which
it
provides
a
model
portfolio
to
RIM
representing
its
investment
recommendations,
based
upon
which
RIM
purchases
and
sells
securities
for
an
Underlying
Fund;
or
(3)
both
a
discretionary
and
a
non-discretionary
assignment.
Money
Manager
Fees
for
a
non-discretionary
assignment
may
be
the
same
as,
or
lower
than,
the
fees
would
be
for
a
discretionary
assignment
with
the
same
Money
Manager.
The
Board
considered
that
RIM
(rather
than
any
Money
Manager
in
the
case
of
Underlying
Funds)
is
responsible
under
the
RIM
Agreement
for
determining,
implementing
and
maintaining
the
investment
program
for
each
Fund
and,
in
conducting
each
Fund’s
investment
program,
allocating
assets
of
such
Fund
principally
among
its
Underlying
Funds.
The
assets
of
each
Fund
are
principally
invested
in
different
combinations
of
the
Underlying
Funds
pursuant
to
target
asset
allocations
set
by
RIM.
RIM
analyzes
opportunities
and
risks
at
the
aggregate
level
of
the
four
main
asset
classes
–
equities,
fixed
income,
alternatives
and
multi-asset
–
and
monitors
exposure
to
such
asset
classes
using
analytical
tools
to
ensure
that
any
deviations
from
the
target
asset
allocations
are
intentional
and
tactical.
RIM
continually
evaluates
each
Fund’s
allocation
between
asset
classes
to
ensure
that
the
allocations
optimally
match
the
Fund’s
stated
investment
objectives
and
risk
profile.
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
(such
as
asset
class,
currency,
capitalization
size,
industry,
sector,
region,
credit
exposure,
country
risk,
yield
curve
positioning
or
interest
rates).
RIM
advised
the
Board
that
it
would
discontinue
its
direct
management
of
Fund
assets
in
2021.
RIM
may
modify
the
target
asset
allocation
for
any
Fund
and/or
the
Underlying
Funds
in
which
the
Funds
invest.
The
overall
performance
of
each
Fund
therefore
has
reflected,
in
part,
the
performance
of
RIM
in
designing
the
investment
program
of
the
Fund
and
in
determining
the
Funds’
target
strategic
asset
allocations.
The
overall
performance
of
each
Fund
also
has
reflected
the
performance
of
RIM
in
managing
its
Underlying
Funds.
The
Board
considered
that,
although
RIM
traditionally
has
managed
Underlying
Fund
exposures
through
the
selection
of
and
allocations
to
Money
Manager
strategies,
innovations
in
RIM’s
portfolio
management
techniques
together
with
evolutions
in
available
technology,
tools
and
analytics
have
resulted
in
certain
changes
in
RIM’s
approach
to
its
Underlying
Fund
investment
advisory
services
in
recent
years.
In
this
regard,
assets
of
each
Underlying
Fund
continue
to
be
allocated
among
RIM
and
the
multiple
Money
Manager
strategies
selected
by
RIM
for
that
Underlying
Fund.
RIM
may
change
an
Underlying
Fund’s
asset
allocation
to
a
Money
Manager
at
any
time,
including
by
allocating
no
Underlying
Fund
assets
to
one
or
more
Money
Manager
strategies.
In
addition,
RIM
continues
to
manage
the
investment
of
each
Underlying
Fund’s
cash
and
portions
of
an
Underlying
Fund
during
transitions
between
discretionary
Money
Managers.
RIM
also
continues
to
manage
directly
any
portion
of
each
Underlying
Fund’s
assets
that
RIM
determines
not
to
allocate
to
Money
Manager
strategies.
Most
Underlying
Funds
usually,
but
not
always,
pursue
a
strategy
to
be
fully
invested
by
exposing
all
or
a
portion
of
their
cash
to
the
performance
of
appropriate
markets
by
purchasing
equity
securities,
fixed
income
securities
and/or
derivatives,
which
typically
include,
among
other
derivative
instruments,
index
futures
contracts,
exchange-traded
fixed-income
futures
contracts,
forwards,
swaps
and
to
be
announced
securities.
This
cash
“equitization”
strategy
is
managed
by
RIM.
With
respect
to
the
portion
of
an
Underlying
Fund
that
RIM
manages
based
upon
non-discretionary
Money
Manager
model
portfolios,
RIM
constructs
a
portfolio
that
represents
the
aggregation
of
the
model
portfolios
based
upon
RIM’s
allocation
to
each
Money
Manager’s
strategy
through
an
“enhanced
portfolio
implementation,”
or
“emulation,”
process
designed
to
capture
return
streams
of
multiple
managers
in
a
centralized
portfolio.
RIM
then
implements
the
portfolio
consistent
with
the
aggregation
of
the
model
portfolios,
but
may
deviate
from
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
60
Basis
for
Approval
of
Investment
Advisory
Agreement
such
aggregation
for
the
purposes
of
exposure
and
transaction
cost
management.
RIM
noted
that
the
Underlying
Funds
may
benefit
from
emulation
through,
among
other
things,
improved
incremental
returns
over
time
due
to
lower
aggregate
transaction
costs
and
turnover
from
reduced
trading
volumes
and
the
potential
for
additional
commission
recapture.
In
all
cases,
Underlying
Fund
assets
are
managed
directly
by
RIM
pursuant
to
authority
provided
by
the
RIM
Agreement.
The
Board
noted
the
variety
and
complexity
of
investment
advisory
services
that
RIM
provides
directly
or,
through
the
Underlying
Funds,
indirectly
to
the
Funds
under
the
RIM
Agreement.
In
the
case
of
Underlying
Funds,
RIM
is
responsible
for
selecting
(subject
to
Board
approval),
overseeing
and
evaluating
the
performance
results
of
the
Money
Managers
for
each
Underlying
Fund
and
for
actively
managing
allocations
and
reallocations
of
its
assets
among
Money
Manager
strategies
and
RIM
itself.
Each
discretionary
Money
Manager
for
an
Underlying
Fund
in
effect
performs
the
function
of
an
individual
portfolio
manager
who
is
responsible
for
researching,
selecting
and
trading
portfolio
securities
for
the
portion
of
the
Underlying
Fund
assigned
to
it
by
RIM
in
accordance
with
the
Underlying
Fund’s
applicable
investment
objective,
policies
and
restrictions,
any
specific
guidelines
placed
by
RIM
upon
their
selection
of
portfolio
securities
and
the
Money
Manager’s
specified
role
in
an
Underlying
Fund.
A
Money
Manager’s
primary
role
is
to
pursue
a
particular
investment
strategy
that
has
been
selected
and
assigned
to
it
by
RIM
through
sector
and
security
selection
and
risk
control
measures
in
a
manner
that
is
consistent
with
its
RIM-assigned
guidelines.
The
Money
Managers
operate
subject
to
the
oversight
of,
and
instructions
from,
RIM.
For
each
Underlying
Fund,
RIM
is
responsible
for,
among
other
things,
providing
each
Money
Manager
with
the
investment
guidelines
and
policies
for
the
Underlying
Fund
and
any
specific
investment
restrictions;
monitoring
the
performance
of
each
Money
Manager
and
Underlying
Fund;
generally
supervising
compliance
by
the
discretionary
Money
Managers
and,
as
applicable,
the
non-discretionary
Money
Managers
with
each
Underlying
Fund’s
investment
objective
and
policies;
with
respect
to
Underlying
Funds
with
non-discretionary
Money
Managers,
purchasing
and
selling
securities
for
the
Underlying
Funds
based
on
model
portfolios
representing
the
investment
recommendations
of
the
non-discretionary
Money
Managers;
managing
Underlying
Fund
assets
that
are
not
allocated
to
Money
Manager
strategies;
managing
the
Underlying
Funds’
cash
balances;
and
recommending
at
least
annually
to
the
Board
whether
portfolio
management
contracts
should
be
renewed,
modified
or
terminated.
In
addition
to
its
annual
recommendation
as
to
the
renewal,
modification
or
termination
of
portfolio
management
contracts,
RIM
is
responsible
for
recommending
to
the
Board
additions
of
new
Money
Managers
or
terminations
or
replacements
of
existing
Money
Managers
at
any
time
when,
based
on
RIM’s
research
and
ongoing
review
and
analysis,
such
actions
are,
in
RIM’s
judgment,
appropriate.
RIM
may
impose
specific
investment
or
strategy
parameters
from
time
to
time
on
each
Money
Manager
intended
to
capitalize
on
the
strengths
of
that
Money
Manager
or
to
coordinate
the
investment
activities
of
Money
Managers
for
the
Underlying
Fund
in
a
complementary
manner.
Therefore,
RIM’s
selection
of
Money
Managers
for
an
Underlying
Fund
is
made
not
only
on
the
basis
of
performance
considerations
but
also
on
the
basis
of
other
factors,
including
anticipated
compatibility
with
other
Money
Managers
in
the
same
Underlying
Fund.
In
light
of
the
foregoing,
the
overall
performance
of
each
Underlying
Fund
has
reflected,
in
great
part,
the
performance
of
RIM
in
designing
the
Underlying
Fund’s
investment
program,
structuring
the
Underlying
Fund,
selecting
effective
Money
Managers,
and
allocating
assets
among
the
Money
Manager
strategies
and
RIM
in
a
manner
designed
to
achieve
the
investment
objectives
of
the
Underlying
Fund.
In
the
Agreement
Evaluation
Information,
RIM
noted
the
broad
array
of
investment
management
services
provided
to
the
Underlying
Funds
by
RIM
compared
to
the
relatively
narrow
portfolio
management
services
provided
to
the
Underlying
Funds
by
Money
Managers.
RIM
has
advised
the
Board
that
its
portfolio
construction
process
is
investment
led
and
designed
to
be
conducted
in
a
manner
that
is
consistent
with
its
fiduciary
duties.
The
objective
of
RIM’s
portfolio
construction
is
to
meet
a
portfolio’s
investment
objective
and
established
excess
return
target.
In
the
Agreement
Evaluation
Information,
RIM
noted
that
while
it
has
general
goals
for
Money
Manager
Fees
in
the
aggregate
globally,
there
are
no
specific
fee
targets
that
are
established
for
individual
portfolios,
which
includes
each
of
the
Underlying
Funds.
In
the
Agreement
Evaluation
Information,
RIM
advised
the
Board
that
Money
Manager
Fees,
in
the
aggregate,
must
allow
RIM
to
remain
a
going
concern
with
sufficient
resources
to
provide
required
services
to
the
Funds
and
to
earn
a
reasonable
profit.
RIM
advised
the
Board
that
RIM
portfolio
managers
utilize
a
number
of
tools
in
the
portfolio
construction
process
in
order
to
meet
an
Underlying
Fund’s
objective
taking
into
account
Money
Manager
Fees.
These
tools
include,
among
others,
Money
Manager
selection,
Money
Manager
allocation,
Money
Manager
Fee
negotiations,
guideline
customization
and
RIM’s
direct
management
of
a
portion
of
the
Manager-of-Managers
Funds’
assets
(as
further
described
below).
The
Board
considered
that
the
prospectuses
for
the
Funds
and
the
Underlying
Funds
and
other
public
disclosures
have
emphasized,
and
continue
to
emphasize,
to
investors
RIM’s
role
as
the
principal
investment
manager
for
each
Underlying
Fund,
rather
than
the
investment
selection
or
recommendation
role
of
these
Underlying
Funds’
Money
Managers,
and
describe
the
manner
in
which
the
Funds
or
Underlying
Funds
operate
so
that
investors
may
take
that
information
into
account
when
deciding
to
purchase
shares
of
any
such
Fund.
The
Board
further
considered
that
Fund
investors
in
pursuing
their
investment
goals
and
objectives
likely
purchased
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
61
their
shares
on
the
basis
of
this
information
and
RIM’s
reputation
for
and
performance
record
in
managing
the
manager-of-managers
structure
of
the
Underlying
Funds.
The
Board
also
considered
the
demands
and
complexity
of
managing
the
Underlying
Funds
pursuant
to
the
manager-of-managers
structure,
the
special
expertise
of
RIM
with
respect
to
the
manager-of-managers
structure
of
the
Underlying
Funds
and
the
possibility
that,
at
the
current
expense
ratio
of
each
Underlying
Fund,
there
might
be
no
acceptable
alternative
investment
managers
to
replace
RIM
on
comparable
terms
given
the
need
to
continue
the
manager-of-managers
strategy
of
such
Underlying
Fund
selected
by
shareholders
in
purchasing
their
shares.
In
addition
to
these
general
factors
relating
to
the
manager-of-managers
structure
of
the
Underlying
Funds,
the
Trustees
considered,
with
respect
to
each
Fund
and
Underlying
Fund,
various
specific
factors
in
evaluating
the
renewal
of
the
RIM
Agreement,
including
the
following:
1.
The
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
or
the
Underlying
Fund
by
RIM;
2.
The
Advisory
Fee
paid
by
the
Fund
or
the
Underlying
Fund
to
RIM
and
the
fact
that
it
encompasses
all
investment
advisory
fees
paid
by
the
Fund
or
Underlying
Fund,
including,
in
the
case
of
Underlying
Funds,
the
fact
that
RIM
pays
all
Money
Manager
Fees
out
of
its
Advisory
Fee;
3.
Information
provided
by
RIM
as
to
other
fees
and
benefits
received
by
RIM
or
its
affiliates
in
connection
with
the
Fund
or
the
Underlying
Fund,
including
any
administrative
or
transfer
agent
fees
and
any
fees
received
for
management
or
administration
of
uninvested
cash
and
securities
lending
cash
collateral,
soft
dollar
arrangements,
which
RIM
discontinued
effective
December
31,
2020,
and
commissions
in
connection
with
portfolio
securities
and
foreign
exchange
transactions;
4.
Information
provided
by
RIM
as
to
expenses
incurred
by
the
Fund
or
Underlying
Fund;
5.
Information
provided
by
RIM
as
to
the
profits
that
RIM
derives
from
its
mutual
fund
operations
generally
and
from
the
Fund
or
the
Underlying
Fund;
and
6.
Information
provided
by
RIM
concerning
economies
of
scale
and
whether
any
scale
economies
are
adequately
shared
with
the
Fund
or
the
Underlying
Fund.
In
connection
with
the
Trustees’
consideration
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided,
and
which
are
expected
to
be
provided,
to
the
Funds
or
the
Underlying
Funds,
including
Fund
portfolio
management
services,
the
Board
discussed
with
senior
representatives
of
Russell
Investments
(as
defined
below)
the
impact
of
certain
recent
changes
in
Russell
Investments’
senior
management
and
personnel
providing
investment
management
and
other
services
to
the
Underlying
Funds,
including
the
Chief
Investment
Officer
of
RIM
and
the
Funds.
The
Board
also
discussed
the
Funds’
compliance
program
with
the
Funds’
Chief
Compliance
Officer
(“CCO”),
including
certain
items
reported
in
the
annual
report
of
the
CCO
required
under
Rule
38a-
1
of
the
1940
Act
(the
“Annual
CCO
Report”)
and
the
status
of
the
goals
for
the
past
year
related
to
the
compliance
program
that
the
CCO
identified
in
connection
with
last
year’s
Annual
CCO
Report.
The
Annual
CCO
Report
also
included
information
on
the
status
of
various
compliance,
operations
and
technology
initiatives
previously
discussed
with
the
Board.
The
CCO
discussed
with
the
Board,
and
the
Board
noted,
enhancements
made
to
the
compliance
programs
of
RIM
and
the
Funds
over
the
past
year
and
suggestions
for
additional
enhancements
going
forward,
as
well
as
certain
staffing
enhancements
and
the
recent
changes
in
senior
management.
The
CCO
advised
the
Board
that
the
Funds’
compliance
program
meets
the
standards
of
Rule
38a-1
under
1940
Act
and
that,
as
required
by
Rule
38a-1
under
the
1940
Act,
RIM
has
adopted
policies
and
procedures
that
are
reasonably
designed
to
prevent
violation
of
the
Federal
Securities
Laws
(as
such
term
is
defined
in
the
1940
Act)
with
respect
to
the
services
RIM
provides
to
the
Funds.
Throughout
the
year,
the
CCO
and
RIM
senior
management
discussed
the
impact
of
the
COVID-19
pandemic
on
the
operations
and
compliance
programs
of
RIM
and
the
Funds’
other
significant
service
providers
and,
based
on
those
discussions
and
the
Agreement
Evaluation
Information,
there
did
not
appear
to
the
Board
to
be
any
diminution
in
the
nature,
extent
and
quality
of
services
provided
by
each
of
these
service
providers
under
their
respective
agreements
with
the
Funds
as
a
result
of
the
COVID-19
pandemic.
Since
June
1,
2016,
RIM
has
been
an
indirect
wholly-owned
subsidiary
of
Russell
Investments
Group,
Ltd.,
a
Cayman
company
through
which
the
limited
partners
of
certain
private
equity
funds
affiliated
with
TA
Associates
indirectly
have
a
majority
ownership
interest
through
alternative
investment
vehicles
and
the
limited
partners
of
certain
private
equity
funds
affiliated
with
Reverence
Capital
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
62
Basis
for
Approval
of
Investment
Advisory
Agreement
Partners,
L.P.
(“Reverence
Capital”)
indirectly
have
a
significant
minority
controlling
ownership
interest
through
certain
Reverence
Capital
funds
and
alternative
investment
vehicles
in
RIM
and
its
affiliates
(“Russell
Investments”).
Members
of
Russell
Investments’
current
and
former
management
and
private
markets
firm
Hamilton
Lane
Incorporated’s
parent
company
also
hold
minority,
non-
controlling
positions
in
Russell
Investments.
In
connection
with
the
Board’s
initial
approval
of
the
RIM
Agreement,
TA
Associates
advised
the
Board
of
its
plans
ultimately
to
effect
a
sale
or
other
disposition
of
its
ownership
interest
in
Russell
Investments.
Any
such
future
transaction
(“Transaction”)
could
cause
a
change
of
control
of
RIM
resulting,
among
other
things,
in
an
assignment
and
termination
of
the
RIM
Agreement,
as
required
by
the
1940
Act,
and
by
the
terms
and
conditions
of
the
RIM
Agreement.
In
the
event
of
a
Transaction,
the
Board
would
be
required
to
consider
the
approval
of
the
terms
and
conditions
of
a
replacement
agreement
(“Successor
Agreement”)
for
the
RIM
Agreement
and
thereafter
to
submit
the
Successor
Agreement
to
each
Fund’s
shareholders
for
approval,
as
required
by
the
1940
Act.
During
the
executive
session
with
a
representative
of
TA
Associates
held
in
connection
with
the
Agreement
Information
Review
Meeting,
among
other
things,
the
status
of
TA
Associates’
indirect
investment
in
RIM
and
RIM’s
access
to
sufficient
resources
to
support
its
activities
in
respect
of
the
Funds,
including
in
light
of
the
current
market
environment,
current
debt
levels
of
Russell
Investments
Group,
Ltd.
and
certain
recent
changes
in
Russell
Investments’
senior
management
were
discussed.
The
Board
was
advised
that
there
was
no
change
in
TA
Associates’
plans
regarding
its
ownership
interest
in
Russell
Investments
from
those
plans
previously
reported
to
the
Board
and
of
TA
Associates’
commitment
to
continue
to
support
the
same
level
of
services
currently
being
provided
by
RIM
and
its
affiliates
to
the
Funds.
As
noted
above,
RIM,
in
addition
to
managing
the
investment
of
each
Underlying
Fund’s
cash,
directly
manages
a
portion
(which
may
represent
a
significant
portion)
of
the
Underlying
Funds
pursuant
to
the
RIM
Agreement,
with
the
actual
allocation
of
Underlying
Fund
assets
among
Money
Manager
strategies
and
RIM
being
determined
from
time
to
time
by
the
RIM
portfolio
manager(s).
In
the
management
of
Underlying
Funds’
assets,
RIM
utilizes
quantitative
and/or
rules-based
processes
and
qualitative
analysis
to
assess
Underlying
Fund
characteristics
and
invests
in
securities
and
instruments
which
provide
the
desired
exposures
(such
as
low
volatility,
momentum,
value,
growth,
quality,
capitalization
size,
industry,
sector,
region,
currency,
credit
or
mortgage
exposure,
country
risk,
yield
curve
positioning,
or
interest
rates).
For
example,
RIM
may
utilize
tools
such
as
“optimization,”
which
involves
the
analysis
of
tradeoffs
between
various
risk
and
return
factors
as
well
as
turnover
and
transaction
costs,
in
order
to
estimate
optimal
portfolio
positioning.
RIM
may
use
strategies
based
on
indexes,
including
optimized
index
sampling
(strategies
that
seek
to
purchase
a
sampling
of
securities
using
optimization
and
risk
models)
and/or
index
replication.
For
certain
Underlying
Funds,
RIM
may
invest
in
derivative
instruments
and
may
use
derivatives
to
take
both
long
and
short
positions.
RIM’s
direct
management
of
assets
for
these
purposes
is
hereinafter
referred
to
as
the
“Direct
Management
Services.”
While
no
new
direct
management
strategies
were
implemented
in
2020,
the
Board
has
been
advised
that,
where
appropriate
in
its
judgment,
RIM
may
continue
exploring
the
possible
addition
of
new
or
expansion
of
existing
Direct
Management
Services.
Therefore,
larger
portions
of
certain
Underlying
Funds
may
be
managed
directly
by
RIM
pursuant
to
the
Direct
Management
Services.
According
to
RIM,
its
portfolio
managers
combine
Money
Manager
strategies
and
RIM’s
Direct
Management
Services
for
the
Underlying
Funds
and
precisely
align
Underlying
Fund
exposures
with
RIM’s
preferred
positioning.
RIM’s
Direct
Management
Services
are
customized
portfolios
directly
managed
by
RIM
for
use
within
the
total
portfolio
of
an
Underlying
Fund.
These
strategies
are
used
in
conjunction
with
allocations
to
Money
Manager
strategies
to
fully
reflect
RIM’s
strategic
and
dynamic
insights
with
integrated
liquidity
and
risk
management.
The
Board
considered
that
RIM
is
not
required
to
pay
Money
Manager
Fees
to
any
Money
Managers
with
respect
to
assets
for
which
it
provides
Direct
Management
Services
and
that
the
profits
derived
by
RIM
generally
and
from
the
Underlying
Funds
consequently
may
be
increased,
although
RIM
noted
that
it
may
incur
additional
costs
in
providing
Direct
Management
Services.
RIM
advised
the
Board
that
allocations,
or
increased
allocations,
of
Underlying
Fund
assets
to
Direct
Management
Services,
together
with
Money
Manager
selection,
allocations
among
Money
Manager
strategies,
renegotiation
of
Money
Manager
Fees
and
changes
in
existing
Money
Manager
assignments
from
discretionary
to
non-discretionary
assignments
where
there
is
a
related
Money
Manager
Fee
reduction
may
reduce
its
costs
of
providing
investment
advisory
services
to
the
Underlying
Funds,
which
would
benefit
RIM.
The
Board
considered
RIM’s
advice
that
any
such
benefit,
including
any
increased
profits
to
RIM,
ultimately
may
be
partially
offset
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Underlying
Funds
and
any
costs
of
incremental
investments
or
increased
cost
allocations
that
RIM
may
incur
to
support
Direct
Management
Services.
The
Board
also
considered
information
provided
by
RIM
as
to
the
potential
benefits
of
the
Direct
Management
Services
to
the
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
63
Underlying
Funds;
and
the
fact
that
the
aggregate
Advisory
Fees
paid
by
the
Underlying
Funds
are
not
increased
as
a
result
of
RIM’s
direct
management
of
Underlying
Fund
assets
as
part
of
the
Direct
Management
Services
or
otherwise.
The
Board
noted
that
changes
in
the
allocation
of
assets
among
Money
Manager
strategies
or
to
Direct
Management
Services
may
result
directly
in
higher
related
costs
to
affected
Underlying
Funds,
including
higher
brokerage
commissions
and
other
transaction
costs,
a
portion
of
which
is
paid
to
RIM’s
affiliated
broker
in
connection
with
execution
of
portfolio
transactions
in
connection
with
such
changes.
The
Agreement
Evaluation
Information
outlined
various
changes
that
have
been
implemented
in
the
investment
program
for
the
Underlying
Funds
in
recent
years,
and
described
additional
current
and
potential
changes,
and
the
impact
of
such
changes,
to
the
investment
advisory
services
provided
to
the
Underlying
Funds
by
RIM,
which
the
Trustees
took
into
account
in
their
contract
renewal
deliberations,
including
the
following:
•
RIM
advised
the
Board
that
in
2019
and
2020
it
reviewed
certain
key
tenets
of
its
investment
approach
and
took
certain
measures
to
assess
potential
steps
to
enhance
the
process
with
the
goal
to
improve
risk
adjusted
performance
over
a
market
cycle.
•
The
Direct
Management
Services
described
above.
•
Most
discretionary
equity
Money
Manager
assignments
for
Underlying
Funds
were
converted
to
non-discretionary
assignments,
thereby
implementing
emulation
for
all
but
two
Money
Manager
equity
assignments.
The
Board
considered
the
potential
impacts
described
in
the
Agreement
Evaluation
Information,
both
positive
and
negative,
on
the
Underlying
Funds
of
emulation.
RIM
noted
that,
in
implementing
emulation
for
Underlying
Funds,
it
assumes
various
risks,
including
trade
error
risk
as
it
takes
over
responsibility
for
trading.
RIM
generally
effects
Underlying
Fund
portfolio
transactions
through
an
affiliated
broker
that
receives
commissions
for
effecting
a
portion
of
these
transactions.
According
to
RIM,
the
Underlying
Funds
pay
the
same
commission
rates
regardless
of
whether
the
affiliate
receives
any
portion
of
the
commission.
•
RIM
advised
the
Board
that,
over
the
last
several
years,
it
had
reduced
the
number
of
Money
Managers
for
certain
Underlying
Funds
in
part
to
seek
more
concentrated
return
drivers.
RIM
also
advised
the
Board
that
allocations
to
Direct
Management
Services
for
certain
Underlying
Funds
were
increased
in
2019
to
accommodate
the
need
for
additional
overall
portfolio
exposure
management
that
may
arise
from
more
concentrated
Money
Manager
lineups.
Additionally,
RIM
advised
the
Board
that,
in
order
to
preserve
flexibility
and
to
manage
risks
and
address
the
volatility
associated
with
Underlying
Funds
having
manager
lineups
with
fewer
Money
Managers,
and
consistent
with
the
terms
of
the
manager-of-managers
exemptive
order,
in
2019
RIM
created
Money
Manager
“bench”
lineups
for
certain
Underlying
Funds,
whereby
those
Underlying
Funds
have
Board-approved
portfolio
management
contracts
with
Money
Managers
that
are
not
funded
(i.e.,
have
an
asset
allocation
of
zero).
In
the
Agreement
Evaluation
Information,
RIM
advised
the
Board
that
the
opportunity
to
decrease
a
Money
Manager’s
allocation
to
zero,
but
not
terminate
the
Money
Manager,
allows
RIM
to
potentially
realize
gains
from
strategies
that
may
have
been
overly
rewarded
in
the
marketplace
over
the
short
to
medium
term,
or
provide
the
opportunity
to
retain
capacity
with
a
Money
Manager
that
may
otherwise
be
closed
to
new
business.
The
Board
noted
that
RIM
does
not
believe
there
are
any
detriments
to
the
Underlying
Funds
or
RIM
from
the
use
of
a
manager
bench.
RIM
advised
the
Board
that,
going
forward,
RIM
may
add
managers
to
an
Underlying
Fund
with
an
existing
manager
bench
or
create
manager
bench
lineups
for
additional
Underlying
Funds.
•
RIM
has
renegotiated
fees
with
certain
Money
Managers
to
lower
levels
and
advised
the
Board
that
it
will
continue
to
assess
opportunities
for
Money
Manager
Fee
reductions
in
the
future.
RIM
advised
the
Board
that
it
has
not
experienced
and
does
not
expect,
any
diminution
in
the
nature,
scope
or
quality
of
services
provided
by
Money
Managers
as
a
result
of
renegotiated
manager
fees.
Because
Money
Manager
Fees
are
paid
by
RIM
out
of
its
Advisory
Fee
from
the
Underlying
Funds,
the
foregoing
may
benefit
RIM
in
the
form
of
savings
to
RIM
from
reduced
Money
Manager
Fees
as
a
negotiated
manager
fee
reduction
may
increase
RIM’s
profitability
with
respect
to
the
subject
Fund.
RIM
noted
that
such
benefits
may
be
offset
partially
by
the
impact
of
any
new
or
additional
fee
waivers
or
expense
caps
separately
agreed
upon
and
implemented
from
time
to
time
for
the
affected
Underlying
Funds,
and
any
costs
of
incremental
investments
or
increased
cost
allocations
that
RIM
may
incur
to
support
Direct
Management
Services.
In
evaluating
the
Funds’
and
Underlying
Funds’
Advisory
Fees,
the
Board
considered
that,
in
the
Agreement
Evaluation
Information
and
at
past
meetings,
RIM
noted
differences
between
the
investment
strategies
of
certain
Underlying
Funds
and
their
respective
Comparable
Funds
in
pursuing
their
investment
objectives.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
64
Basis
for
Approval
of
Investment
Advisory
Agreement
The
Third-Party
Information
included,
among
other
things,
comparisons
of
the
Funds’
Advisory
Fees
with
the
investment
advisory
fees
of
their
Comparable
Funds
on
an
actual
basis
(i.e.,
giving
effect
to
any
fee
waivers
and/or
expense
caps
implemented
by
RIM
with
respect
to
a
Fund
and
by
the
managers
of
such
Fund’s
Comparable
Funds).
The
Third-Party
Information,
among
other
things,
showed
that
each
Fund
had
an
Advisory
Fee
which,
compared
with
the
investment
advisory
fees
of
its
respective
Comparable
Funds
on
an
actual
basis,
was
ranked
in
the
first
quintile
of
its
Expense
Universe
for
that
expense
component.
In
these
rankings,
the
first
quintile
represents
funds
with
the
lowest
investment
advisory
fees
of
its
comparable
Fund
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
investment
advisory
fees
among
the
Expense
Universe
funds.
The
comparisons
were
based
upon
the
latest
fiscal
years
for
the
Expense
Universe
funds.
In
discussing
the
Advisory
Fees
for
the
Underlying
Funds
generally,
RIM
noted,
among
other
things,
that
its
Advisory
Fees
for
the
Underlying
Funds
encompass
services
that
are
typical
to
services
provided
by
investment
advisers
to
the
Underlying
Funds’
Comparable
Funds,
as
well
as
unique
services
that
are
distinctly
different
from
those
provided
by
investment
advisers
to
the
Underlying
Funds’
Comparable
Funds,
such
as
cash
equitization
and
transition
management
efforts
that
enable
efficient
and
cost-effective
asset
transition
events.
RIM
also
advised
the
Board
that
while
its
pre-tax
profit
margins
from
its
relationships
with
the
Funds
and
Underlying
Funds
increased
slightly
in
2020,
RIM’s
pre-tax
profit
margins
in
providing
investment
advisory
services
to
the
Funds
ranked
below
the
median
of
the
operating
profit
margins
of
public
investment
management
company
peers
based
on
a
survey
conducted
in
2019.
RIM
has
expressed
its
view
that
Advisory
Fees
should
also
be
considered
in
the
context
of
a
Fund’s
or
Underlying
Fund’s
total
expense
ratio
to
obtain
a
complete
picture.
The
Board
considers
each
Fund’s
and
Underlying
Fund’s
Advisory
Fee
on
both
a
standalone
basis
and
in
the
context
of
the
Fund’s
or
Underlying
Fund’s
total
expense
ratio.
The
Board
has
engaged,
and
continues
to
engage,
in
discussions
with
RIM
to
identify
opportunities
and
establish
goals,
where
appropriate,
for
improving
the
total
expense
comparisons
for
certain
Underlying
Funds
relative
to
their
respective
Comparable
Funds
through
Advisory
Fee
waivers
or
expense
caps.
The
Board
previously
requested
that
RIM
provide
total
expense
ratio
management
plans
to
reduce
total
expenses
for
certain
Underlying
Funds
relative
to
their
Comparable
Funds.
At
the
Agreement
Information
Review
Meeting
and
the
Agreement
Evaluation
Meeting,
the
Board
reviewed
and
discussed
with
RIM
the
total
expense
ratios
of
the
Underlying
Funds,
the
plans
that
RIM
had
previously
implemented,
and
the
fee
waivers
or
expense
caps
RIM
had
proposed
to
implement
to
reduce
total
expenses
for
certain
Underlying
Funds
in
light
of
RIM’s
progress
in
meeting
plan
objectives
and
Comparable
Fund
fee
and
expense
developments
in
the
past
year.
Based
on
that
review
and
discussions
with
RIM,
including
discussions
with
RIM
regarding
its
views
on
the
evolution
of
the
mutual
fund
distribution
landscape
over
the
last
several
years
and
the
use
of
a
variety
of
data
sources
to
assess
the
reasonableness
or
competitiveness
of
a
Fund’s
total
expenses,
the
Trustees
will
continue
to
evaluate
and
engage
in
ongoing
discussions
with
management
regarding
total
expense
comparisons
of
the
Underlying
Funds.
Based
upon
information
provided
by
RIM,
the
Board
considered
for
each
Fund
and
Underlying
Fund
whether
economies
of
scale
have
been
realized
and
whether
the
Advisory
Fee
for
such
Fund
or
Underlying
Fund
appropriately
reflects
or
should
be
revised
to
reflect
any
such
economies.
The
Board
considered,
among
other
things,
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Underlying
Funds
as
well
as
net
Fund
redemptions
or
purchases
in
recent
years.
The
Funds
and
the
RIF
Underlying
Funds
are
distributed
exclusively
through
variable
annuity
and
variable
life
insurance
contracts
issued
by
insurance
companies.
Currently,
the
Funds
are
made
available
to
holders
of
such
insurance
policies
(“Insurance
Contract
Holders”)
by
a
few
insurance
companies.
The
Funds
are
primarily
distributed
through,
and
their
assets
are
primarily
attributed
to,
The
Northwestern
Mutual
Life
Insurance
Company
(“Northwestern
Mutual”).
The
Funds
continue
to
experience
outflows;
however,
RIM
advised
the
Board
there
is
regular
contact
with
Northwestern
Mutual
in
order
to
maintain
product
availability
and
continue
efforts
to
grow
the
product
line.
RIM
expressed
its
belief
that
Northwestern
Mutual
is
still
committed
to
the
Funds
and
RIF
Underlying
Funds.
However,
the
Board
has
received
no
direct
assurances
in
this
regard
from
Northwestern
Mutual.
If
Northwestern
Mutual
were
to
discontinue
its
participation
in
the
Funds,
the
Board
considered
that
it
is
unlikely
that
the
Funds
would
remain
viable.
RIM
previously
expressed
its
belief
that
the
Funds
will
remain
viable
in
the
near
term,
and
the
Board
was
not
advised
of
any
change
in
RIM’s
belief
in
this
regard.
The
Board
considered,
among
other
things,
the
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
variable
annuity
and
variable
life
insurance
policyholders.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
65
With
respect
to
each
Underlying
Fund,
the
Board
considered
any
Advisory
Fee
waivers
or
other
expense
limitation
arrangements,
including
the
total
expense
ratio
management
plans,
that
had
been
implemented
in
the
past
year,
including
the
first
quarter
of
2021.
In
addition,
the
Board,
in
the
case
of
certain
Underlying
Funds,
considered
Advisory
Fee
breakpoints
that
previously
had
been
implemented
for
those
Underlying
Funds.
The
Board
also
considered
the
fees
payable
to
RIM
or
its
affiliates
by
Other
RIM
Funds
and
institutional
clients
with
investment
objectives
similar
to
those
of
the
Funds
and
the
Underlying
Funds.
The
Trustees
considered
the
differences
in
the
nature
and
scope
of
services
RIM
provides
to
institutional
clients
and
the
Funds
and
the
Underlying
Funds.
RIM
explained,
among
other
things,
that
institutional
products
have
fewer
compliance,
administrative,
client
servicing/communication
and
other
needs
than
the
Funds
and
the
Underlying
Funds.
RIM
also
noted
that
due
to
the
number
and
nature
of
investors,
along
with
their
varied
needs
for
liquidity,
there
is
more
portfolio
liquidity
management
and
cash
flow
management
required
for
the
Funds
and
the
Underlying
Funds
than
for
RIM’s
institutional
clients,
where
assets
are
relatively
stable.
In
addition,
RIM
noted
that
the
Funds
and
the
Underlying
Funds
are
subject
to
heightened
regulatory
requirements
relative
to
institutional
clients,
including
new
rules
recently
adopted
by
the
SEC.
Accordingly,
the
Trustees
concluded
that
the
services
provided
to
the
Funds
and
Underlying
Funds
are
sufficiently
different
from
the
services
provided
to
such
institutional
clients
that
comparisons
are
not
probative
and
should
not
be
given
significant
weight.
The
Board
considered
RIM’s
commitment
to
conduct
a
holistic
review
of
the
Advisory
Fees
and
certain
other
fees
of
the
RIF
Underlying
Funds
and
to
provide
information
resulting
from
such
review
to
the
Board
in
late
2021.
With
respect
to
the
Funds’
total
expenses,
the
Third-Party
Information
showed
that
the
total
expenses
for
the
Moderate
Strategy
Fund
ranked
in
the
second
quintile
of
its
Expense
Universe,
and
the
total
expenses
of
each
other
Fund
ranked
in
the
first
quintile
of
its
Expense
Universe.
In
these
rankings,
the
first
quintile
represents
the
funds
with
the
lowest
total
expenses
among
funds
in
the
Expense
Universe
and
the
fifth
quintile
represents
funds
with
the
highest
total
expenses
among
the
Expense
Universe
funds.
On
the
basis
of
the
Agreement
Evaluation
Information,
and
other
information
previously
received
by
the
Board
from
RIM
during
the
course
of
the
year
and
prior
years,
or
presented
at
or
in
connection
with
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting
by
RIM,
the
Board,
in
respect
of
each
Fund
and
Underlying
Fund,
after
giving
effect
to
any
applicable
fee
waivers
and/or
expense
caps
for
the
Underlying
Funds,
and
considering
any
differences
in
the
composition
of
the
Expense
Groups
of
the
RIC
Underlying
Funds
and
investment
strategies
of
their
respective
Comparable
Funds
and
in
light
of
other
factors
discussed
above:
(1)
found
the
Advisory
Fee
charged
by
RIM
was
acceptable
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
advisory
and
other
services
provided,
and
expected
to
be
provided,
to
the
Fund
or
Underlying
Fund
and
to
provide
continuity
of
investment
advisory
and
other
services
by
RIM
to
the
Fund
or
Underlying
Fund;
(2)
either
found
that
the
relative
expense
ratio
of
each
Fund
and
Underlying
Fund
was
comparable
to
those
of
its
Comparable
Funds
or
took
into
account
the
factors
noted
above,
and
other
factors
in
respect
of
the
Underlying
Funds,
in
considering
the
relative
expense
ratio
as
compared
to
those
of
its
Comparable
Funds;
(3)
found
that
the
other
benefits
and
fees
received
by
RIM
or
its
affiliates
from
the
Fund
or
Underlying
Fund
identified
in
the
Agreement
Evaluation
Information
were
not
considered
to
be
excessive;
(4)
found
that
RIM’s
reported
profitability
with
respect
to
the
Fund
and
Underlying
Fund
was
not
considered
to
be
excessive
in
light
of
the
nature,
scope
and
overall
quality
of
the
investment
management
and
other
services
provided
by
RIM
and
applicable
judicial
and
regulatory
guidance;
and
(5)
found
that
the
Advisory
Fee
charged
by
RIM
appropriately
reflects
any
economies
of
scale
realized
by
such
Fund
or
Underlying
Fund
in
light
of
various
factors,
including
potential
negative
implications
for
significant
future
Fund
asset
growth
if
additional
insurance
companies
do
not
make
the
Funds
available
to
their
Insurance
Contract
Holders;
the
Advisory
Fee
breakpoints
that
are
in
place
for
certain
Underlying
Funds;
the
variability
of
Money
Manager
Fees
and
other
factors
associated
with
the
manager-of-managers
structure
employed
by
the
Underlying
Funds;
and
RIM’s
advice
that
it
does
not
believe
it
will
experience
meaningful
economies
of
scale.
The
Board
concluded
that,
under
the
circumstances
and
based
on
RIM’s
performance
information
and
reviews
for
each
Fund
and
Underlying
Fund,
the
performance
of
each
of
the
Funds
and
Underlying
Funds
is
consistent
with
the
continuation
of
the
RIM
Agreement.
The
Board
noted
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
In
assessing
the
performance
of
the
Funds
and
the
Underlying
Funds
with
at
least
three
years
of
performance
history,
the
Board
focused
upon
performance
for
the
3-year
period
ended
December
31,
2020
as
most
relevant,
but
also
considered
Fund
and
Underlying
Fund
performance
for
the
1-year
and,
where
applicable,
5-year
periods
ended
on
such
date.
In
reviewing
the
performance
of
the
Funds
and
Underlying
Funds
generally,
the
Board
took
into
consideration
various
steps
taken
by
RIM
in
the
past
two
years
to
enhance
the
performance
of
certain
Underlying
Funds,
including
changes
in
Money
Managers
or
their
allocations,
and
RIM’s
implementation
or
expansion
of
its
Direct
Management
Services
and
other
strategies,
which
may
not
yet
be
fully
reflected
in
Underlying
Fund
investment
results.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
66
Basis
for
Approval
of
Investment
Advisory
Agreement
With
respect
to
the
Moderate
Strategy
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe
for
the
3-
and
5-year
periods
ended
December
31,
2020,
and
the
fourth
quintile
of
its
Performance
Universe
for
the
1-year
period
ended
on
such
date.
With
respect
to
the
Balanced
Strategy
Fund
and
Growth
Strategy
Fund,
the
Third-
Party
Information
showed
that
the
Fund’s
performance
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe
for
each
of
the
1-,
3-
and
5-year
periods
ended
December
31,
2020.
With
respect
to
the
Equity
Growth
Strategy
Fund,
the
Third-Party
Information
showed
that
the
Fund’s
performance
was
ranked
in
the
fifth
quintile
of
its
Performance
Universe
for
the
1-
and
3-year
periods
ended
December
31,
2020,
and
the
fourth
quintile
of
its
Performance
Universe
for
the
5-year
period
ended
on
such
date.
The
Board
considered
RIM’s
explanation
that
the
underperformance
of
the
Funds
relative
to
their
respective
peer
groups
for
the
3-year
period
was
primarily
due
to
asset
allocation
differences
compared
to
the
Performance
Universe.
RIM
noted,
among
other
things,
that
the
Funds
have
exposure
to
more
diversified
and
growth-oriented
asset
classes
beyond
traditional
equities,
such
as
global
high
yield
debt,
emerging
market
debt,
global
real
estate,
infrastructure
and
commodities,
which
are
included
to
provide
diversification
benefits
and
dampen
volatility.
RIM
explained
that
in
the
strong
rising
equity
environment
experienced
over
the
period,
the
Funds’
exposures
to
these
asset
classes
were
headwinds
relative
to
peers.
The
Board
also
considered
RIM’s
explanation
that
the
Funds
have
a
non-U.S.
bias
and
a
lower
U.S.
equity
allocation
relative
to
peers,
which
negatively
impacted
peer-relative
performance
during
the
period.
RIM
noted
that
the
Funds
have
a
bias
towards
relatively
underpriced
value-oriented
equities
compared
to
the
Performance
Universe,
which
served
as
a
significant
headwind
over
the
period
as
growth
equities
outperformed
value
equities
on
an
annualized
basis.
RIM
further
noted
that
the
Funds’
strategic
asset
allocations
were
modified
in
April
2021,
with
the
objective
of
improving
return
potential
given
the
current
capital
markets
environment
and
capital
markets
forecasts
and
improving
asset
class
and
performance
attribution
transparency.
RIM
noted
that
the
new
strategic
asset
allocations
are
expected
to
result
in
less
frequent
strategic
allocation
changes
going
forward
and
expressed
its
belief
that
the
strategic
asset
allocations
are
appropriate
over
the
longer
term.
In
evaluating
performance,
the
Board
considered
each
Fund’s
and
Underlying
Fund’s
performance
not
only
relative
to
its
Comparable
Funds,
but
also
in
absolute
terms
and
relative
to
appropriate
benchmarks
and
indices.
The
Board
considered
the
Underlying
Funds’
performance
relative
to
their
benchmarks
in
light
of
RIM’s
advice
that
its
investment
philosophy
and
process
seek
to
combine
investment
managers
to
produce
benchmark-beating
returns
with
above-average
consistency.
For
the
1-year
period
ended
December
31,
2020,
the
RIC
Investment
Grade
Bond
Fund,
RIC
Short
Duration
Bond
Fund,
RIC
Global
Infrastructure
Fund,
RIF
U.S.
Strategic
Equity
Fund,
RIF
Strategic
Bond
Fund
and
RIF
Global
Real
Estate
Securities
Fund
outperformed
their
respective
benchmarks;
for
the
3-year
period
ended
December
31,
2020,
the
RIC
Unconstrained
Total
Return
Fund,
RIC
Investment
Grade
Bond
Fund,
RIC
Short
Duration
Bond
Fund,
RIC
Global
Infrastructure
Fund,
RIF
Strategic
Bond
Fund
and
RIF
Global
Real
Estate
Securities
Fund
outperformed
their
respective
benchmarks;
and
for
the
5-year
period
ended
December
31,
2020,
the
RIC
Opportunistic
Credit
Fund,
RIC
Investment
Grade
Bond
Fund,
RIC
Short
Duration
Bond
Fund,
RIC
Global
Infrastructure
Fund,
RIF
Strategic
Bond
Fund
and
RIF
Global
Real
Estate
Securities
Fund
outperformed
their
respective
benchmarks.
The
Board
also
considered
the
Money
Manager
changes
that
have
been
made
during
the
past
year
and
that
the
performance
of
Money
Managers
continues
to
impact
the
performance
of
the
Funds
and
Underlying
Funds
for
periods
prior
and
subsequent
to
their
termination.
Lastly,
the
Board
considered
the
implementation
of
additional
strategies
or
refinements
to
strategies
discussed
in
the
Agreement
Evaluation
Information
and/or
prior
Board
meetings
that
may
be
employed
by
RIM
in
respect
of
certain
Funds
and
Underlying
Funds.
After
considering
the
foregoing
and
other
relevant
factors,
including
factors
described
above,
the
Board
concluded
in
respect
of
each
Fund
and
Underlying
Fund
that
continuation
of
the
RIM
Agreement
would
be
in
the
best
interest
of
such
Fund
and
its
shareholders
and
voted
to
approve
the
continuation
of
the
RIM
Agreement.
At
the
Agreement
Information
Review
Meeting
and
Agreement
Evaluation
Meeting,
with
respect
to
the
evaluation
of
the
terms
of
portfolio
management
contracts
with
Money
Managers
for
the
Underlying
Funds,
the
Board
received
and
considered
information
from
RIM
reporting,
among
other
things,
for
each
Money
Manager,
the
Money
Manager’s
performance
over
various
periods;
RIM’s
assessment
of
the
performance
of
each
Money
Manager;
any
significant
business
relationships
between
the
Money
Manager
and
RIM
or
Russell
Investments
Financial
Services,
LLC,
the
Funds’
and
Underlying
Funds’
underwriter;
and
RIM’s
recommendation
to
retain
each
discretionary
or
non-discretionary
Money
Manager
on
the
current
terms
and
conditions,
including
at
the
current
fee
rate.
The
Board
received
reports
during
the
course
of
the
year
from
the
Funds’
CCO
regarding
her
assessments
of
Money
Manager
compliance
programs
and
any
compliance
issues.
RIM
did
not
identify
any
benefits
from
the
Underlying
Funds’
portfolio
transactions
received
by
Money
Managers
or
their
affiliates
other
than
potential
benefits
from
soft
dollar
arrangements
or
commissions
paid
to
any
affiliated
broker-dealer
through
which
a
discretionary
Money
Manager
may
execute
trades.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Basis
for
Approval
of
Investment
Advisory
Agreement,
continued
—
(Unaudited)
Basis
for
Approval
of
Investment
Advisory
Agreement
67
RIM
recommended
that
each
of
the
Money
Managers
be
retained
for
its
current
discretionary
or
non-discretionary
assignment
at
its
current
fee
rate.
In
doing
so,
RIM,
as
it
has
in
the
past,
advised
the
Board
that
it
does
not
regard
Money
Manager
profitability
or
economies
of
scale
as
relevant
to
its
evaluation
of
the
portfolio
management
contracts
with
Money
Managers
because
the
willingness
of
Money
Managers
to
serve
in
such
capacity
depends
upon
arm’s-length
negotiations
with
RIM;
RIM
is
aware
of
the
standard
fee
rates
charged
by
Money
Managers
to
other
clients;
and
RIM
believes
that
the
fees
agreed
upon
with
Money
Managers
are
reasonable
and
appropriate
in
light
of
the
anticipated
quality
of
investment
advisory
services
to
be
rendered.
The
Board
accepted
RIM’s
explanation
of
the
relevance
of
Money
Manager
profitability
in
light
of
RIM’s
belief
that
such
fees
are
reasonable;
the
Board’s
findings
as
to
the
acceptability
of
the
Advisory
Fee
paid
by
each
Underlying
Fund;
and
the
fact
that
each
Money
Manager’s
fee
is
paid
by
RIM.
The
May
24-25
quarterly
Board
materials
were
provided
prior
to
the
Agreement
Evaluation
Meeting
and
those
materials
contained
proposals
by
RIM
related
to
(1)
the
appointment
of
certain
Money
Managers
and
(2)
an
amendment
to
a
portfolio
management
contract
to
reflect
Money
Manager
Fee
reductions.
Based
upon
RIM’s
recommendations,
together
with
relevant
Agreement
Evaluation
Information,
the
Board
concluded
that
the
fees
paid
to
the
Money
Managers
of
each
Underlying
Fund
are
acceptable
in
light
of
RIM’s
assessment
of
quality
of
the
investment
advisory
services
provided
and
that
continuation
of
the
portfolio
management
contract
with
each
Money
Manager
of
each
Underlying
Fund
would
be
in
the
best
interests
of
such
Underlying
Fund
and
its
shareholders.
*
*
*
This
discussion
is
not
intended
to
include
all
of
the
factors
and
information
considered
by
the
Board.
In
their
deliberations,
the
Trustees
did
not
identify
any
particular
information
as
to
the
RIM
Agreement
or,
other
than
RIM’s
recommendation,
the
portfolio
management
contract
with
any
Money
Manager
for
an
Underlying
Fund
that
was
all-important
or
controlling,
except,
in
the
case
of
the
RIM
Agreement,
the
need
to
continue
the
managers-of-managers
structure
of
the
Underlying
Funds,
and
each
Trustee
attributed
different
weights
to
the
various
factors
considered.
The
Trustees
evaluated
all
information
available
to
them
on
a
Fund-by-Fund
basis
and
their
determinations
were
made
in
respect
of
each
Fund
and
Underlying
Fund.
Russell
Investment
Funds
Liquidity
Risk
Management
Program
—
(Unaudited)
68
Liquidity
Risk
Management
Program
The
Funds
have
adopted
and
implemented
a
liquidity
risk
management
program
(the
“Program”)
in
accordance
with
Rule
22e-4
of
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”).
The
Program
seeks
to
assess,
manage,
and
review
each
Fund’s
“liquidity
risk.”
For
purposes
of
the
Liquidity
Rule,
“liquidity
risk”
is
defined
as
the
risk
that
a
Fund
is
unable
to
satisfy
redemption
requests
without
significantly
diluting
remaining
investors’
interests
in
the
Fund.
The
Program
is
comprised
of
various
components
designed
to
support
the
assessment
and/or
management
of
liquidity
risk,
including:
1.
Assessment,
management
and
periodic
review
of
each
Fund’s
liquidity
risk;
2.
Classification
of
each
Fund’s
investments
into
four
categories
or
liquidity
buckets
based
on
how
long
it
would
take
to
convert
the
investment
to
cash
(the
“Classification
Regime”);
3.
Establishment
and
annual
review
of
a
highly
liquid
investment
minimum
(“HLIM”)
for
each
Fund
that
does
not
invest
primarily
in
“highly
liquid”
investments
(as
defined
under
the
Liquidity
Rule);
4.
Requirements
applicable
to
a
Fund’s
holdings
of
“illiquid
investments”
(as
defined
under
the
Liquidity
Rule);
and
5.
Implementation
of
redemption
in-kind
policies
and
procedures.
The
Board
of
Trustees
of
RIF
(the
“Board”)
appointed
RIM,
the
Funds’
investment
adviser,
as
the
Program
administrator
(the
“Program
Administrator”).
The
Program
Administrator
has
delegated
responsibility
to
implement
and
administer
the
Program,
subject
to
oversight
by
the
Program
Administrator,
to
one
or
more
RIM
associates
(the
“Program
Administrator
Delegate”).
The
Program
Administrator,
through
the
Program
Administrator
Delegate,
monitors
the
adequacy
and
effectiveness
of
the
Program’s
implementation
and
on
a
periodic
basis
assesses
each
Fund’s
liquidity
risk
based
on
a
variety
of
factors.
At
the
May
24,
2021
meeting
of
the
Regulatory
and
Investment
Compliance
Committee
of
the
Board
(the
“Meeting”),
the
Program
Administrator
reviewed
with
all
members
of
the
Board
the
Program
Administrator’s
annual
written
report
(the
“Report”)
addressing
the
Program’s
operation
as
well
as
the
adequacy
and
effectiveness
of
its
implementation
for
the
period
from
January
1,
2020
through
December
31,
2020
(the
“Program
Reporting
Period”).
The
Report
summarized
the
factors
considered
by
the
Program
Administrator
in
assessing
whether
the
Program
has
been
adequately
and
effectively
implemented
with
respect
to
each
Fund.
Such
information
and
factors
included,
among
other
things:
(1)
the
framework
used
to
assess,
manage,
and
periodically
review
each
Fund’s
liquidity
risk
and
the
results
of
this
assessment;
(2)
the
methodology
and
inputs
used
in
connection
with
the
Classification
Regime,
including
circumstances
in
which
the
Program
Administrator
adjusted
a
preliminary
classification
provided
by
the
third-party
service
provider
engaged
to
assist
in
preparing
classifications
of
portfolio
investments
(the
“Service
Provider”)
or
adjusted
the
inputs
used
by
the
Service
Provider
to
generate
preliminary
classifications;
(3)
whether
a
new
HLIM
should
be
established,
or
an
existing
HLIM
continued
or
modified,
for
each
Fund
and
the
procedures
for
monitoring
for
HLIM
compliance;
(4)
whether
a
Fund
invested
more
than
15%
of
its
assets
in
illiquid
investments
and
the
procedures
for
monitoring
for
this
limit;
(5)
specific
liquidity
events
arising
during
the
Program
Reporting
Period,
including
the
impact
on
Fund
liquidity
caused
by
extended
non-U.S.
market
closures;
(6)
specific
information
relating
to
the
Program’s
operation
in
light
of
the
COVID-19
crisis,
including
with
respect
to
the
impact
the
COVID-19
crisis
on
the
Classification
Regime
and
HLIM
compliance;
and
(7)
actions
taken
by
the
Program
Administrator
and
Program
Administrator
Delegate
during
the
Program
Reporting
Period
to
manage
Fund
liquidity
and
liquidity
risk.
There
were
no
changes
to
the
Funds’
written
policies
and
procedures
related
to
the
Program
during
the
Program
Reporting
Period
but
the
Board
was
informed
of
certain
clarifications
to
such
written
policies
and
procedures
that
would
be
implemented
following
the
Meeting.
Based
on
the
Program
Administrator’s
review
and
the
factors
set
forth
in
the
Report,
the
Report
concluded
that:
(1)
the
Program
continues
to
be
reasonably
designed
to
effectively
assess
and
manage
each
Fund’s
liquidity
risk;
(2)
each
Fund’s
liquidity
risk
continues
to
be
appropriate
in
light
of
the
Fund’s
investment
objective
and
strategies;
(3)
each
Fund’s
investment
strategies
continue
to
be
appropriate
for
an
open-ended
management
investment
company;
and
(4)
the
Program
has
been
adequately
and
effectively
implemented
with
respect
to
each
Fund,
including
the
establishment
and
operation
of
the
HLIM
for
applicable
Funds.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Shareholder
Requests
for
Additional
Information
—
June
30,
2021
(Unaudited)
Shareholder
Requests
for
Additional
Information
69
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.
Each
year,
you
are
automatically
sent
an
updated
Prospectus.
Unless
you
specifically
request
paper
copies
of
the
annual
and
semiannual
reports
from
the
Funds
or
your
insurance
company,
you
will
be
notified
by
mail
each
time
the
annual
and
semiannual
reports
are
posted
and
provided
with
a
website
link
to
access
the
reports.
You
may
also
occasionally
receive
notifications
of
Prospectus
changes
and
proxy
statements
for
the
Funds.
To
reduce
expenses,
we
may
mail
only
one
copy
of
the
Funds’
prospectuses
and,
upon
request,
each
annual
and
semi-annual
report
to
those
addresses
shared
by
two
or
more
accounts.
If
you
wish
to
receive
individual
copies
of
these
documents,
please
contact
your
insurance
company.
Some
Insurance
Companies
may
offer
electronic
delivery
of
the
Funds’
prospectuses
and
annual
and
semi-annual
reports.
Please
contact
your
Insurance
Company
for
further
details.
Financial
statements
of
the
Underlying
Funds
can
be
obtained
at
no
charge
by
calling
the
Funds
at
(800)
787-7354.
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers
—
June
30,
2021
(Unaudited)
70
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
31
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
officers.
Furthermore,
each
Trustee
possesses
the
following
specific
attributes:
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.
Cahoon
has
had
experience
as
the
senior
financial
executive
of
other
investment
companies
and
their
investment
adviser
and
distributor,
as
well
as
a
certified
public
accountant
who
previously
provided
audit
services
in
the
financial
sector
at
a
multi-
national
accounting
firm;
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
Kristianne
Blake,
Born
January
22,
1954
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2000
Chairman
of
the
Audit
Committee
since
2021
Appointed
until
successor
is
duly
elected
and
qualified
Appointed
until
successor
is
duly
elected
and
qualified
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)
40
Lead
Independent
Director,
Avista
Corp.
(electric
utilities)
Until
May
2017,
Director,
Avista
Corp
(electric
utilities)
Michelle
L.
Cahoon,
Born
July
5,
1966
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2021
Appointed
until
successor
is
duly
elected
and
qualified
Retired
From
January
to
March
2019,
Consulting
Chief
Financial
Officer,
Driehaus
Capital
Management
LLC
(investment
adviser)
Until
2018,
Chief
Financial
Officer
and
Treasurer,
Driehaus
Capital
Management
LLC
and
Driehaus
Securities
LLC
(broker
dealer)
Until
2018,
Vice
President
and
Treasurer,
Driehaus
Mutual
Funds
(investment
company)
40
None
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2021
(Unaudited)
Disclosure
of
Information
about
Fund
Trustees
and
Officers
71
*
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)
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
Appointed
until
successor
is
duly
elected
and
qualified
Retired
40
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)
40
Until
March
2018,
Trustee
of
Avenue
Credit
Strategies
Fund
(investment
company)
Until
November
2017,
Trustee
of
Avenue
Income
Credit
Strategies
Fund
(investment
company)
Raymond
P.
Tennison,
Jr.,
Born
December
21,
1955
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Trustee
since
2000
Chairman
since
2021
Appointed
until
successor
is
duly
elected
and
qualified
Approved
annually
Retired
40
None
Jack
R.
Thompson,
Born
March
21,
1949
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Trustee
since
2005
Vice
Chairman
since
2021
Chairman
of
the
Nominating
and
Governance
Committee
since
2021
Appointed
until
successor
is
duly
elected
and
qualified
Approved
annually
Appointed
until
successor
is
duly
elected
and
qualified
Retired
40
None
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Disclosure
of
Information
about
Fund
Trustees
and
Officers,
continued
—
June
30,
2021
(Unaudited)
72
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
Cheryl
Wichers,
Born
December
16,
1966
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
Chief
Compliance
Officer
since
2005
Until
removed
by
Independent
Trustees
Chief
Compliance
Officer,
RIC
and
RIF
Chief
Compliance
Officer,
RIFUS
2011
to
2016
Chief
Compliance
Officer,
U.S.
One
,
LLC
Mark
E.
Swanson,
Born
November
26,
1963
1301
Second
Avenue
18th
Floor,
Seattle,
WA
98101
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
Kate
El-Hillow,
Born
August
17,
1974
1301
Second
Avenue,
18th
Floor,
Seattle
WA
98101
Chief
Investment
Officer
since
2021
Until
removed
by
Trustees
Until
2021,
Deputy
Chief
Investment
Officer,
Senior
Portfolio
Manager,
Head
of
Strategy
Selection
and
Head
of
Portfolio
Management
&
Risk,
Goldman
Sachs
Global
Chief
Investment
Officer,
Russell
Investments
Chief
Investment
Officer,
RIC
and
RIF
President,
RIM
Mary
Beth
R.
Albaneze,
Born
April
25,
1969
1301
Second
Avenue,
18th
Floor,
Seattle,
WA
98101
Secretary
and
Chief
Legal
Officer
since
2010
Until
successor
is
chosen
and
qualified
by
Trustees
Associate
General
Counsel,
Russell
Investments
Secretary,
RIM,
RIFUS
and
RIFIS
Secretary
and
Chief
Legal
Officer,
RIC
and
RIF
Assistant
Secretary,
U.S.
One,
LLC
Russell
Investment
Funds
LifePoints
®
Funds
Variable
Target
Portfolio
Series
Adviser
and
Service
Providers
—
June
30,
2021
(Unaudited)
Adviser
and
Service
Providers
73
Independent
Trustees
Kristianne
Blake
Michelle
L.
Cahoon
Katherine
W.
Krysty
Julie
Dien
Ledoux
Raymond
P.
Tennison,
Jr.
Jack
R.
Thompson
Officers
Mark
E.
Swanson,
President,
Chief
Executive
Officer,
Treasurer,
Chief
Accounting
Officer
and
Chief
Financial
Officer
Cheryl
Wichers,
Chief
Compliance
Officer
Kate
El-Hillow,
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]
Item 3. Audit Committee Financial Expert. [Annual Report Only]
Item 4. Principal Accountant Fees and Services. [Annual Report Only]
Item 5. Audit Committee of Listed Registrants. [Not Applicable]
Item 6. [Schedules of Investments are included as part of the Report to Shareholders filed under Item 1 of this form]
Items 7-9. [Not Applicable]
Item 10. Submission of Matters to a Vote of Security Holders
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures
(a) Registrant's principal executive officer and principal financial officer has 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 his evaluation of these controls and procedures as of a date within 90 days of the date this report is filed with the Securities and Exchange Commission.
(b) There were no significant changes in Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected or is likely to materially affect Registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies [Not Applicable]
Item 13. Exhibit List
(a) Certification for principal executive officer of Registrant as required by Rule 30a-2(a) under the Act and certification for principal financial officer of Registrant as required by Rule 30a-2(b) under the Act. ex99_cert
(b) Certification for principal executive officer and principal financial officer of Registrant as required by Rule 30a-2(b) under Act. ex99_906cert
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Russell Investment Funds
By: /s/ Mark E. Swanson
Mark E. Swanson
President, Chief Executive Officer, Treasurer, Chief Accounting Officer and Chief Financial Officer, Russell Investment Funds
Date: August 13, 2021